Document:

d1072838_ex10-4.htm

    EXHIBIT
10.4

     

    FORM OF

    MEMORANDUM OF AGREEMENT

     

     

    
      
        	
                Original

                 

                 

                MEMORANDUM
      OF AGREEMENT

              	 	
                
                  Norwegian
      Shipbroker’s Association’s Memorandum of Agreementfor sale and purchase of
      ships.  Adopted by The Baltic and international Maritime Council
      (BIMCO) in 1956.

                

                
                  Code-name

                  SALEFORM
      1993

                

                
                  Revised
      1966, 1983 and 1986/87.

                

              

      

       

    

    
       

      
        	 Dated: 	 
      ______________________________

      

       

    

    
      
        	_______________________________________ 

                hereinafter
      called the Sellers, have agreed to sell, and

              	
                 

                 

                 

                1 

              

         

         

        	
                ___________________________________________________ ,
      Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall
      Islands MH96960

                hereinafter
      called the Buyers, have agreed to buy the

              	
                2

              
	 
      	 
      
	
                Name:  __________________________________________
      

              	
                3

              
	 
      	 
      
	
                Classification
      Society/Class:

              	 
      	
                4

              
	 
      	 
      	 
      
	
                Built:

              	
                By:

              	
                5

              
	 
      	 
      	 
      
	
                Flag:

              	
                Place
      of Registration:

              	
                6

              
	 
      	 
      	 
      
	
                Call
      sign:

              	
                Grt/Nrt:

              	
                7

              
	 
      	 
      	 
      
	
                Register
      Number:

              	 
      	
                8

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

              	
                9

              
	 
      	 
      
	
                Definitions

              	
                10

              
	 
      	 
      
	
                "Banking
      days" are days on which banks are open both in the country of the
      currency.

              	
                11

              
	
                Stipulated
      for the Purchase Price in Clause 1 and in the place of closing stipulated
      in Clause 8.

              	
                12

              
	
                "in
      writing" or "written" means a letter handed over from the Sellers to the
      Buyers or vice versa,

              	
                13

              
	
                a
      registered letter, telex, telefax or other modern form of written
      communication

              	
                14

              
	
                "Classification
      Society" or "Class" means the Society referred to in line
4

              	
                15

              
	 
      	 
      
	
                1.

              	
                Purchase
      Price:

              	
                USD
      _______________________________________cash on delivery, without any
      deductions into Sellers' nominated  bank account with Sellers
      nominated first class international bank

              	
                16

              
	 
      	 
      	 
      	 
      
	
                2.

              	
                Deposit

              	
                17

              
	 
      	 
      
	
                As
      security for the correct fulfilment of this Agreement the Buyers shall pay
      a deposit of 10%

              	
                18

              
	
                (ten
      percent) of the Purchase Price within 3 (three) banking days
      after
      all subjects lifted and after signing a fax copy by both Buyers and
      Sellers of this Agreement.

              	
                19

              
	
                This
      deposit shall be placed with Sellers
      nominated international 1st class
      bank,

              	
                20

              
	
                and
      held by them in an interest
      bearing joint account for the Sellers and the Buyers, to be released in
      accordance

              	
                21

              
	
                with
      joint written instructions of the Sellers and the
      Buyers.  Interest, if any, to
      be credited to the

              	
                22

              
	
                Buyers.

              	
                23

              

        	
                Any
      fee charged for holding the said deposit shall be borne equally by the
      Sellers and the Buyers.

              	
                24

              
	 
      	 
      

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        	
                3.

              	
                Payment

              	
                25

              
	 
      	 
      
	
                The
      said Purchase Price shall be paid in full free of bank charges to Sellers
      account with Sellers same nominated international 15t class bank
      as per Cl. 2

              	
                26

              
	
                on
      delivery of the Vessel, but not later than 3 banking days after the Vessel
      is in every respect

              	
                27

              
	
                physically
      ready for delivery in accordance with the terms and conditions of
      this

              	
                28

              
	
                Agreement
      and Notice of Readiness has been given in accordance with Clause
      5.

              	
                29

              
	 
      	 
      
	
                4.

              	
                Inspections

              	
                25

              
	 
      	 
      
	
                a)*

              	
                The
      Buyers have inspected and accepted the Vessel's classification
      records.  The Buyers

              	
                31

              
	 
      	
                have
      also inspected the Vessel at/in __________________ on
      ____________________                              
      

              	
                32

              
	 
      	
                and
      have accepted the Vessel following this inspection and the sale is
      outright and

              	
                33

              
	 
      	
                definite,
      subject only to the terms and conditions of this
Agreement.

              	
                34

              
	 
      	 
      
	
                b)*

              	
                The Buyers shall
      have the right to inspect the Vessel's classification records and
      declare

              	
                35

              
	 
      	
                whether same are
      accepted or not with in March
      18th,
      2005

              	
                36

              
	 
      	 
      	 
      
	 
      	
                The Seller shall
      provide for inspection of the Vessel at/in Cristobal
      on 10th
      March 05

              	
                37

              
	 
      	 
      	 
      
	 
      	
                The Buyers shall
      undertake the inspection without undue delay to the
      Vessel.  Should the

              	
                38

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

              	
                39

              
	 
      	
                The Buyers shall
      inspect the Vessel without opening up and without cost to the
      Sellers

              	
                40

              
	 
      	
                During the
      inspection, the Vessel's deck and engine log books shall be made available
      for

              	
                41

              
	 
      	
                examination by the
      Buyers.  If the Vessel is accepted after such inspection, the
      sale shall

              	
                42

              
	 
      	
                become outright and
      define, subject only to the terms and conditions of this
      Agreement,

              	
                43

              
	 
      	
                provided the
      Sellers receive written notice of acceptance from the Buyers within 72
      hours

              	
                44

              
	 
      	
                after completion of
      such inspection.  March
      18th, 2005

              	
                45

              
	 
      	
                Should notice of
      acceptance of the Vessel's classification records and of the Vessel not
      be

              	
                46

              
	 
      	
                received by the
      Sellers as aforesaid, the deposit together with interest earned shall
      be

              	
                47

              
	 
      	
                released
      immediately to the Buyers, whether this Agreement shall be null and
      void.

              	
                48

              
	 
      	 
      	 
      
	 
      	
                4
      a) and 4b) are alternatives; delete whichever is not
      applicable.  In the absence of

              	
                49

              
	 
      	
                deletions,
      alternative 4a) to apply.

              	
                50

              
	 
      	 
      	 
      
	
                5.

              	
                Notices,
      time and place of delivery

              	
                51

              
	 
      	 
      	 
      
	
                a)

              	
                The
      Sellers shall keep the Buyers well informed of the Vessel's itinerary and
      shall

              	
                52

              
	 
      	
                provide
      the Buyers with 21, 15 , 10, 7 and 5 days notice of the estimated time of
      arrival at

              	
                53

              
	 
      	
                the
      intended place of drydocking/underwater
      inspection/delivery and 3, 2, 1
      days definite notices of the date Sellers expect the vessel to be ready
      for delivery.  Intended delivery port to be nominated
      concurrently with the 15th and
      7th days
      notices.  When

              	
                54

              
	 
      	
                the
      Vessel is at the place of delivery and in every respect physically ready
      for delivery in

              	
                55

              
	 
      	
                accordance
      with this Agreement, the Sellers shall give the Buyers a written Notice of
      Readiness for delivery.

              	
                56

              

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        	 
      	 
      	 
      
	
                b)

              	
                The
      Vessel shall be delivered and taken over free of
      cargo and charter safely afloat at a safe and accessible port
      or berth or anchorage
      at/in 

              	
                57

              
	 
      	
                Euromed,
      UK Cont, incl. Baltic Sea, Caribs, USAC, USG, USWC, ECC

              	
                58

              
	 
      	
                area
      in the Sellers' option or any
      other safe port/berth as mutually agreed.

              	
                59

              
	 
      	
                Expected
      time of delivery:  The vessel
      shall
      be between ___________________________                 
                                                                            
      in Seller's option

              	
                60

              
	 
      	
                Date
      of cancelling (see Clauses 5 c), 6 b) (iii) and 14):  June
      15th 2005 in
      Buyers' option

              	
                61

              
	 
      	 
      	 
      
	
                c)

              	
                If
      the Sellers anticipate that, notwithstanding the exercise of due diligence
      by them, the

              	
                62

              
	 
      	
                Vessel
      will not be ready for delivery by the cancelling date they may notify the
      Buyers in

              	
                63

              
	 
      	
                writing
      stating the date when they anticipate that the Vessel will be ready for
      delivery and

              	
                64

              
	 
      	
                propose
      a new cancelling date. Upon receipt of such notification the Buyers shall
      have the

              	
                65

              
	 
      	
                option
      of either cancelling this Agreement in accordance with Clause 14 within 7
      running

              	
                66

              
	 
      	
                days
      of receipt of the notice or of accepting the new date as the new
      cancelling date.  If the

              	
                67

              
	 
      	
                Buyers
      have not declared their option within 7 running days of receipt of the
      Sellers'

              	
                68

              
	 
      	
                notification
      or if the Buyers accept the new date, the date proposed in the
      Sellers'

              	
                69

              
	 
      	
                notification
      shall be deemed to be the new cancelling date and shall be substituted
      for

              	
                70

              
	 
      	
                the
      cancelling date stipulated in line 61.

              	
                71

              
	 
      	
                If
      this Agreement is maintained with the new cancelling date all other terms
      and conditions

              	
                72

              
	 
      	
                hereof
      including those contained in Clauses 5 a) and 5 c) shall remain unaltered
      and in full

              	
                73

              
	 
      	
                force
      and effect. Cancellation or failure to cancel shall be entirely without
      prejudice to any

              	
                74

              
	 
      	
                claim
      for damages the Buyers may have under Clause 14 for the Vessel not being
      ready by

              	
                75

              
	 
      	
                The
      original cancelling date

              	
                76

              
	 
      	 
      	 
      
	
                d)

              	
                Should
      the Vessel become an actual, constructive or compromised total loss
      before

              	
                77

              
	 
      	
                delivery
      the deposit together with interest earned shall be released immediately
      to

              	
                78

              
	 
      	
                the
      Buyers whereafter this Agreement shall be null and void

              	
                79

              
	 
      	 
      	 
      
	
                6.

              	
                Drydocking
      / Divers Inspection

              	
                80

              
	 
      	 
      	 
      
	
                a)**

              	
                The Seller shall
      place the Vessel in drydock at the port of delivery for inspection by
      the

              	
                81

              
	 
      	
                Classification
      Society of the Vessel's underwater parts below the deepest load line,
      the

              	
                82

              
	 
      	
                extent of the
      inspection being in accordance with the Classification Society's
      rules.  If the

              	
                83

              
	 
      	
                rudder, propeller,
      bottom or other underwater parts below the deepest load line are
      found

              	
                84

              
	 
      	
                broken, damaged or
      defective so as to affect the Vessel's class, such defects shall be
      made

              	
                85

              
	 
      	
                good at the
      Sellers' expense to the satisfaction of the Classification Society
      without

              	
                86

              
	 
      	
                condition/recommendation*.

              	
                87

              
	 
      	 
      	 
      
	
                b)**

              	
                (i)           The
      Vessel is to be delivered without drydocking. However, the Buyers
      shall

              	
                88

              
	 
      	
                have
      the right at their expense to arrange for an underwater inspection by a
      diver approved

              	
                89

              
	 
      	
                by
      the Classification Society prior to the delivery of the Vessel. The
      Sellers shall at their

              	
                90

              
	 
      	
                cost
      make the Vessel available for such inspection. The extent of the
      inspection and the

              	
                91

              
	 
      	
                conditions
      under which it is performed shall be to the satisfaction of the
      Classification

              	
                92

              
	 
      	
                Society.
      If the conditions at the port of delivery are unsuitable for such
      inspection, the

              	
                93

              
	 
      	
                Sellers
      shall make the Vessel available at a suitable alternative place near to
      the delivery

              	
                94

              
	 
      	
                port.

              	
                95

              
	 
      	 
      	 
      
	 
      	
                (ii)           If
      the rudder, propeller, bottom or other underwater parts below the deepest
      load

              	
                96

              
	 
      	
                line
      are found broken, damaged or defective so as to affect the Vessel's class,
      then unless

              	
                97

              
	 
      	
                repairs
      can be carried out afloat to the satisfaction of the Classification
      Society, the Sellers

              	
                98

              
	 
      	
                shall
      arrange for the Vessel to be drydocked at their expense for inspection by
      the

              	
                99

              
	 
      	
                Classification
      Society of the Vessel's underwater parts-below the deepest load line,
      the

              	
                100

              
	 
      	
                extent
      of the inspection being in accordance with the Classification Society's
      rules. If the

              	
                101

              

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        	 
      	
                rudder,
      propeller, bottom or other underwater parts below the deepest load line
      are found

              	
                102

              
	 
      	
                broken,
      damaged or defective so as to affect the Vessel's class, such defects
      shall be

              	
                103

              
	 
      	
                made
      good by the Sellers at their expense to the satisfaction of the
      Classification Society

              	
                104

              
	 
      	
                without
      condition/recommendation*.  In such event the Sellers are to pay
      also for the cost of

              	
                105

              
	 
      	
                the
      underwater inspection and the Classification Society's
      attendance.

              	
                106

              
	 
      	 
      	 
      
	 
      	
                (iii)           If
      the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no suitable
      dry-

              	
                107

              
	 
      	
                docking
      facilities are available at the port of delivery, the Sellers shall take
      the Vessel

              	
                108

              
	 
      	
                to
      a port where suitable drydocking facilities are available, whether within
      or outside the

              	
                109

              
	 
      	
                delivery
      range as per Clause 5 b). Once drydocking has taken place the Sellers
      shall

              	
                110

              
	 
      	
                deliver
      the Vessel at a port within the delivery range as per Clause 5 b) which
      shall, for the

              	
                111

              
	 
      	
                purpose
      of this Clause, become the new port of delivery. In such event the
      cancelling date

              	
                112

              
	 
      	
                provided
      for in Clause 5 b) shall be extended by the additional time required for
      the

              	
                113

              
	 
      	
                drydocking
      and extra steaming, but limited to a maximum of 14 running
      days.

              	
                114

              
	 
      	 
      	 
      
	
                c)

              	
                If
      the Vessel is drydocked pursuant to Clause 6 a) or 6 b)
    above

              	
                115

              
	 
      	 
      	 
      
	 
      	
                (i)           the
      Classification Society may require survey of the tailshaft system, the
      extent of

              	
                116

              
	 
      	
                the
      survey being to the satisfaction of the Classification
      surveyor.  If such survey is not

              	
                117

              
	 
      	
                required
      by the Classification Society, the Buyers shall have the right to require
      the tailshaft

              	
                118

              
	 
      	
                to
      be drawn and surveyed by the Classification Society, the extent of the
      survey being in

              	
                119

              
	 
      	
                accordance
      with the Classification Society's rules for tailshaft survey and
      consistent with

              	
                120

              
	 
      	
                the
      current stage of the Vessel's survey cycle. The Buyers shall declare
      whether they

              	
                121

              
	 
      	
                require
      the tailshaft to be drawn and surveyed not later than by the completion of
      the

              	
                122

              
	 
      	
                Inspection
      by the Classification Society. The drawing and refitting of the tailshaft
      shall be

              	
                123

              
	 
      	
                arranged
      by the Sellers. Should any parts of the tailshaft system be condemned or
      found

              	
                124

              
	 
      	
                defective
      so as to affect the Vessel's class, those parts shall be renewed or made
      good at

              	
                125

              
	 
      	
                the
      Sellers' expense to the satisfaction of the Classification Society
      without

              	
                126

              
	 
      	
                condition/recommendation*.

              	
                127

              
	 
      	 
      	 
      
	 
      	
                (ii)           the
      expenses relating to the survey of the tailshaft system shall be
      borne

              	
                128

              
	 
      	
                by
      the Buyers unless the Classification Society requires such survey to be
      carried out, in

              	
                129

              
	 
      	
                which
      case the Sellers shall pay these expenses. The Sellers shall also pay the
      expenses

              	
                130

              
	 
      	
                if
      the Buyers require the survey and parts of the system are condemned or
      found defective

              	
                131

              
	 
      	
                or
      broken so as to affect the Vessel's class*.

              	
                132

              
	 
      	 
      	 
      
	 
      	
                (iii)           the
      expenses in connection with putting the Vessel in and taking her out
      of

              	
                133

              
	 
      	
                drydock,
      including the drydock dues and the Classification Society's fees shall be
      paid by

              	
                134

              
	 
      	
                the
      Sellers if the Classification Society issues any condition/recommendation*
      as a result

              	
                135

              
	 
      	
                of
      the survey or if it requires survey of the tailshaft system.  In
      all other cases the Buyers

              	
                136

              
	 
      	
                shall
      pay the aforesaid expenses, dues and fees.

              	
                137

              
	 
      	 
      	 
      
	 
      	
                (iv)           the
      Buyers' representative shall have the right to be present in the drydock,
      but

              	
                138

              
	 
      	
                without
      interfering with the work or decisions of the Classification
      surveyor.

              	
                139

              
	 
      	 
      	 
      
	 
      	
                (v)           the
      Buyers shall have the right to have the underwater parts of the
      Vessel

              	
                140

              
	 
      	
                cleaned
      and painted at their risk and expense without interfering with the
      Sellers' or the

              	
                141

              
	 
      	
                Classification
      surveyors work, if any, and without affecting the Vessel's timely
      delivery.  If,

              	
                142

              
	 
      	
                however,
      the Buyers' work in drydock is still in progress when the Sellers
      have

              	
                143

              
	 
      	
                Completed
      the work which the Sellers are required to do, the additional docking
      time

              	
                144

              
	 
      	
                needed
      to complete the Buyers' work shall be for the Buyers' risk and
      expense.  In the event

              	
                145

              
	 
      	
                that
      the Buyers' work requires such additional time, the Sellers may upon
      completion of the

              	
                146

              
	 
      	
                Sellers'
      work tender Notice of Readiness for delivery whilst the Vessel is still in
      drydock

              	
                147

              
	 
      	
                and
      the Buyers shall be obliged to take delivery in accordance with Clause 3,
      whether

              	
                148

              
	 
      	
                the
      Vessel is in drydock or not and irrespective of Clause 5
    b).

              	
                149

              
	 
      	 
      	 
      
	
                *

              	
                Notes,
      if any, in the surveyor's report which are accepted by the Classification
      Society

              	
                150

              
	 
      	
                without
      condition/recommendation are not to be taken into account.

              	
                151

              

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        	 
      	 
      	 
      
	
                **

              	
                6 a) and 6 b) are
      alternatives; delete whichever is not applicable.  In the
      absence of deletions,

              	
                152

              
	 
      	
                Alternative
      6 a) to apply

              	
                153

              
	 
      	 
      	 
      
	
                7.

              	
                Spares/bunkers,
      etc.

              	
                154

              
	 
      	 
      	 
      
	
                The
      Sellers shall deliver the Vessel to the Buyers with everything belonging
      to her on board and on

              	
                155

              
	
                Shore
      and
      on order at the time of physical inspection.  All equipment/spare
      parts and spare equipment including full
      communication equipment, spare anchors, navigational and computer
      equipment, wireless
      installations and navaids, spare tail-end shaft(s) and/or
      spare

              	
                156

              
	
                propeller(s)/propeller
      blade(s), if any, belonging to the Vessel at the time of inspection used
      or

              	
                157

              
	
                unused,
      whether on board or not shall become the Buyers' property, but spares are to
      be

              	
                158

              
	
                excluded
      at no
      extra cost.  Forwarding charges, if any, shall be for the
      Buyers' account.  The Sellers are not required
to

              	
                159

              
	
                replace
      spare parts including spare tail-end shaft(s) and spare
      propeller(s)/propeller blade(s) which

              	
                160

              
	
                are
      taken out of spare and used as replacement prior to delivery, but the
      replaced items shall be the

              	
                161

              
	
                property
      of the Buyers.  The radio installation and navigational
      equipment shall be included in the sale

              	
                162

              
	
                without
      extra payment
      if they are the property of the Sellers.  Unused stores
      and
      provisions shall be

              	
                163

              
	
                included
      in the sale and be taken over by the Buyers without extra
      payment.  Any
      running/maintenance system and
      their logs concerning the vessel to be included in the
      sale.  Furthermore broached and unbroached stores (including
      unbroached paint) as on board to be included in the
      sale.

              	
                164

              
	 
      	 
      
	
                The
      Sellers have the right to take ashore crockery, plates, cutlery, linen and
      other articles bearing the

              	
                165

              
	
                Sellers'
      flag or name, provided they replace same with similar unmarked
      items.  Library, forms, etc,

              	
                166

              
	
                exclusively
      for use in the Sellers' vessel(s), shall be excluded without compensation.
      Captain's,

              	
                167

              
	
                Officers'
      and Crew's personal belongings including the slop chest are to be excluded
      from the sale,

              	
                168

              
	
                as
      well as the following additional items (including items on
      hire):

              	
                169

              
	
                —

                —

                 

                —

                —

                —

                —

                —

                —

              	
                crew
      recreational equipment incl. Crew's personal PC's and laptops

                certificates
      which Sellers have to return to issuing authorities according to law, but
      Buyers to have the right to take copies of such certificates

                log
      books, but Buyers to have the right to take copies of same

                Iridium
      Crew satellite telephone

                Unitor
      gas bottles

                Chartco
      equipment

                Videotel
      library

                Chartco
      equipment

              	 
      
	 
      	 
      
	
                The
      Buyers shall take over the remaining
      bunkers and unused lubricating oils in storage tanks (oil shall
      not have passed through the vessels system) and

              	
                170

              
	
                sealed
      drums and pay at Sellers'
      last paid net contract price after discounts as evidenced by supporting
      invoices/vouchers the current net
      market price (excluding barging expenses) at the port and
      date

              	
                171

              
	
                of delivery of the
      Vessel

              	
                172

              
	
                Payment
      under this Clause shall be made at the same time and place and in the same
      currency as

              	
                173

              
	
                the
      Purchase Price.  Bunkers on
      board are Pool's property and shall be taken over without payment
      to
      Sellers, as the ship will remain In the pool.

              	
                174

              
	 
      	 
      
	
                8.

              	
                Documentation
      see Cl. 17.

              	
                175

              
	 
      	 
      
	
                The
      place of closing:  Hamburg or
      Monaco, to be mutually agreed

              	
                176

              
	 
      	 
      
	
                In
      exchange for payment of the Purchase Price the Sellers shall furnish the
      Buyers with delivery

              	
                177

              
	
                documents
      namely:  Buyers and
      Sellers shall within 10 days after date of signing MoA provide a list of
      closing documents which are to be mutually agreed and attached to the MoA
      as an addendum.

              	
                178

              

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        	 
      	 
      
	
                a)

              	
                Legal Bill of Sale
      in a form recordable in _____________ (the country in which the Buyers
      are)

              	
                179

              
	 
      	
                to register the
      Vessel), warranting that the Vessel is free from all encumbrances,
      mortgages

              	
                180

              
	 
      	
                and maritime liens
      or any other debts or claims whatsoever, duly notarially attested
      and

              	
                181

              
	 
      	
                legalized by the
      cousul of such country or other competent
authority.

              	
                182

              
	 
      	 
      	 
      
	
                b)

              	
                Current Certificate
      of Ownership issued by the competent authorities of the flag state
      of

              	
                183

              
	 
      	
                the
      Vessel

              	
                184

              
	 
      	 
      	 
      
	
                c)

              	
                Confirmation of
      Class issued within 72 hours prior to delivery.

              	
                185

              
	 
      	 
      	 
      
	
                d)

              	
                Current Certificate
      issued by the competent authorities stating that the Vessel is free
      from

              	
                186

              
	 
      	
                registered
      encumbrances

              	
                187

              
	 
      	 
      	 
      
	
                e)

              	
                Certificate of
      Deletion of the Vessel from the Vessel's registry or other official
      evidence of

              	
                188

              
	 
      	
                deletion
      appropriate to the Vessel's registry at the time of delivery, or, in the
      event that the

              	
                189

              
	 
      	
                registry does not
      as a matter of practice issue such documentation immediately, a
      written

              	
                190

              
	 
      	
                undertaking by the
      Sellers to effect deletion from the Vessel's registry forthwith and
      furnish a

              	
                191

              
	 
      	
                Certificate or
      other official evidence of deletion to the Buyers promptly and latest
      within 4

              	
                192

              
	 
      	
                (four) weeks after
      the Purchase Price has been paid and the Vessel has been
      delivered.

              	
                193

              
	 
      	 
      	 
      
	
                f)

              	
                Any such additional
      documents as may reasonably be required by the competent
      authorities

              	
                194

              
	 
      	
                for the purpose of
      registering the Vessel, provided the Buyers notify the Sellers of any
      such

              	
                195

              
	 
      	
                documents as soon
      as possible after the date of the Agreement

              	
                196

              
	 
      	 
      	 
      
	
                At
      the time of delivery the Buyers and Sellers shall sign and deliver to each
      other a Protocol of

              	
                197

              
	
                Delivery
      and Acceptance confirming the date and time of delivery of the Vessel from
      the Sellers to the

              	
                198

              
	
                Buyers.

              	
                199

              
	 
      	 
      
	
                At
      the time of delivery the Sellers shall hand to the Buyers the
      classification certificate(s) as-well-as-all

              	
                200

              
	
                plans etc., which
      are on board the Vessel.  Other certificates which are on board
      the Vessel shall also

              	
                201

              
	
                be handed over to
      the Buyers unless the Sellers are required to retain same, in which case
      the

              	
                202

              
	
                Buyers to have the
      right to take copies.  Other technical documentation which
      may

              	
                203

              
	
                Be in the Sellers'
      possession shall be promptly forwarded to the Buyers at their expense, if
      they so

              	
                204

              
	
                request.  The
      Sellers may keep the Vessels log books but the Buyers to have the right to
      take

              	
                205

              
	
                copies of
      same.

              	
                206

              
	 
      	 
      
	
                9.

              	
                Encumbrances

              	
                207

              
	 
      	 
      
	
                The
      Sellers warrant that the Vessel, at the time of delivery, is free from
      any
      and all charters, encumbrances, Mortgages, and maritime liens and
      taxes or any other debts or
      claim whatsoever.

              	
                208

              
	
                The
      Sellers hereby undertake to indemnify the Buyers against all consequences
      of claims made

              	
                209

              
	
                against
      the vessel which have been incurred prior to the time of
      delivery.

              	
                210

              
	 
      	
                211

              

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        	 
      	 
      
	
                10.

              	
                Taxes,
      etc.

              	
                212

              
	 
      	 
      
	
                Any
      taxes, fees and expenses in connection with the purchase and registration
      under the Buyers' flag

              	
                213

              
	
                shall
      be for the Buyers' account, whereas similar charges in connection with the
      closing of the Sellers'

              	
                214

              
	
                register
      shall be for the Sellers' account.

              	
                215

              
	 
      	 
      
	
                11.

              	
                Condition
      on delivery see also Cl. 22

              	
                216

              
	 
      	 
      
	
                The
      Vessel with everything belonging to her shall be at the Sellers' risk and
      expense until she is

              	
                217

              
	
                Delivered
      to the Buyers, but subject to the terms and conditions of this Agreement
      she shall be

              	
                218

              
	
                delivered
      and taken over as she was at the time of inspection, fair wear and tear
      excepted.  However, the

              	
                219

              
	
                Vessel
      shall be delivered with her class maintained without notation/ condition/
      recommendation*,

              	
                220

              
	
                free
      of average damage affecting the Vessels class, and with all of
      her classification certificates, trading
      certificates and

              	
                221

              
	
                national
      /
      international certificates, as well as all other certificates the
      Vessel had at the time of inspection, clean,
      valid and

              	
                222

              
	
                unextended
      without
      notation/condition/recommendation* by Class or the relevant
      authorities for a
      minimum period of 6 (six) months at the time of

              	
                223

              
	
                delivery.

              	
                224

              
	
                "inspection"
      in this Clause 11, shall mean the Buyers' inspection according to Clause
      4a) or 4b), if

              	
                225

              
	
                applicable,
      or the Buyers' inspection prior to the signing of this Agreement. If the
      Vessel is taken over

              	
                226

              
	
                without
      inspection, the date of this Agreement shall be the relevant
      date.

              	
                227

              
	 
      	 
      
	
                *

              	
                Notes,
      if any, in the surveyor's report which are accepted by the Classification
      Society

              	
                228

              
	 
      	
                without
      condition/recommendation are not to be taken into account.

              	
                229

              
	 
      	 
      	 
      
	
                12.

              	
                Name
      / markings

              	
                230

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

              	
                231

              
	 
      	 
      
	
                13.

              	
                Buyers'
      default

              	
                232

              
	 
      	 
      
	
                Should
      the deposit not be paid in accordance with Clause 2, the Sellers have the
      right to cancel this

              	
                233

              
	
                Agreement,
      and they shall be entitled to claim compensation for their losses and for
      all expenses

              	
                234

              
	
                incurred
      together with interest.

              	
                235

              
	
                Should
      the Purchase Price not be paid in accordance with Clause 3, the Sellers
      have the right to

              	
                236

              
	
                cancel
      the Agreement, in which case the deposit together with interest earned
      shall be released to the

              	
                237

              
	
                Sellers.  If
      the deposit does not cover their loss, the Sellers shall be entitled to
      claim further

              	
                238

              
	
                compensation
      for their losses and for all expenses incurred together with
      interest.

              	
                239

              
	 
      	 
      
	
                14.

              	
                Sellers'
      default

              	
                240

              
	 
      	 
      
	
                Should
      the Sellers fail to give Notice of Readiness in accordance with Clause 5
      a) or fail to be ready

              	
                241

              
	
                to
      validly complete a legal transfer by the date stipulated in line 61 the
      Buyers shall have

              	
                242

              
	
                the
      option of cancelling this Agreement provided always that the Sellers shall
      be granted a

              	
                243

              
	
                maximum
      of 3 banking days after Notice of Readiness has been given to make
      arrangements

              	
                244

              
	
                for
      the documentation set out in Clause 8. If after Notice of Readiness has
      been given but before

              	
                245

              
	
                the
      Buyers have taken delivery, the Vessel ceases to be physically ready for
      delivery and is not

              	
                246

              
	
                made
      physically ready again in every respect by the date stipulated in line 61
      and new Notice of

              	
                247

              
	
                Readiness
      given, the Buyers shall retain their option to cancel. In the event that
      the Buyers elect

              	
                248

              
	
                to
      cancel this Agreement the deposit together with interest earned shall be
      released to them

              	
                248

              
	
                immediately
      .

              	
                250

              
	
                Should
      the Sellers fail to give Notice of Readiness by the date stipulated in
      line 61 or fail to be ready

              	
                251

              

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        	
                to
      validly complete a legal transfer as aforesaid they shall make due
      compensation to the Buyers for

              	
                252

              
	
                their
      loss and for all expenses together with interest if their failure is due
      to proven

              	
                253

              
	
                negligence
      and whether or not the Buyers cancel this Agreement.

              	
                254

              
	 
      	 
      
	
                15.

              	
                Buyers'
      representatives

              	
                255

              
	 
      	 
      
	
                After
      this Agreement has been signed by both parties and the deposit has been
      lodged, the Buyers

              	
                256

              
	
                have
      the right to place two representatives on board the Vessel at their sole
      risk and expense upon

              	
                257

              
	
                arrival at on or
      about

              	
                258

              
	
                These
      representatives are on board for the purpose of familiarisation and in the
      capacity of

              	
                259

              
	
                observers
      only, and they shall not interfere in any respect with the operation of
      the Vessel.  The

              	
                260

              
	
                Buyers'
      representatives shall sign the Sellers' letter of
      indemnity P+l
      indemnity form prior to their embarkation.

              	
                261

              
	 
      	 
      
	
                16.

              	
                Arbitration

              	
                262

              
	 
      	 
      	 
      
	
                a)*

              	
                This
      Agreement shall be governed by and construed in accordance with English
      law and

              	
                263

              
	 
      	
                any
      dispute arising out of this Agreement shall be referred to arbitration in
      London in

              	
                264

              
	 
      	
                accordance
      with the Arbitration Acts 1950 and 1979 or any statutory modification
      or

              	
                265

              
	 
      	
                re-enactment
      thereof for the time being in force, one arbitrator being appointed by
      each

              	
                266

              
	 
      	
                party.
      On the receipt by one party of the nomination in writing of the other
      party's arbitrator,

              	
                267

              
	 
      	
                that
      party shall appoint their arbitrator within fourteen days, failing which
      the decision of the

              	
                268

              
	 
      	
                single
      arbitrator appointed shall apply. If two arbitrators properly appointed
      shall not agree

              	
                269

              
	 
      	
                they
      shall appoint an umpire whose decision shall be final.  Disputes of
      less than USD 50.000. (Fifty Thousand US Dollars) to be settled in
      accordance with LMAA's small claims procedure.

              	
                270

              
	 
      	 
      	 
      
	
                b)*

              	
                This Agreement
      shall be governed by and construed in accordance with Title 9 of
      the

              	
                271

              
	 
      	
                United States Code
      and Law of the State of New York and should any dispute arise out
      of

              	
                272

              
	 
      	
                this Agreement, the
      matter in dispute shall be referred to three persons at New York, one
      to

              	
                273

              
	 
      	
                be appointed by
      each of the parties hereto, and the third by the two so chosen;
      their

              	
                274

              
	 
      	
                decision or that of
      any two of them shall be final, and for purpose of enforcing any award,
      this

              	
                275

              
	 
      	
                Agreement may be
      made a rule of the Court.

              	
                276

              
	 
      	
                The proceedings
      shall be conducted in accordance with the rules of the Society of
      Maritime

              	
                277

              
	 
      	
                Arbitrators, Inc.
      New York.

              	
                278

              
	 
      	 
      	 
      
	
                c)*

              	
                Any dispute arising
      out of this Agreement shall be referred to arbitration
      at

              	
                279

              
	 
      	
                ___________________________________________,
      subject to the procedures applicable there

              	
                280

              
	 
      	
                The laws of
      _____________ shall govern this Agreement.

              	
                281

              
	 
      	 
      	 
      
	
                *

              	
                16
      a), 16 b) and 16 c) are alternatives; delete whichever is not
      applicable.  In the absence of

              	
                282

              
	 
      	
                deletions,
      alternative 16 a) to apply.

              	
                283

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                Clause
      17 to 21 both inclusive as herewith attached shall form an integral part
      of this Memorandum of Agreement.

              	 
      

      

      

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

      

      Appendix
to Memorandum of Agreement dated ________________

      MT
_________________

      

      
        

      

      

      
        	
                Cl. 17

              	
                The
      Sellers to assist the Buyers and provide all information and copies of all
      Certificates that may be reasonably required for the Buyers registration
      and/or Change of flag.

              

      

      
      

      
         

        
          	
                   

                	
                  
                    At
      the time of delivery , Sellers to hand over one complete set of
      manuals/instruction books and plans/drawings pertaining to 'Colin Jacob'
      and her equipment on board. A further set of such documents, in addition
      to all other technical documentation the Sellers have in their possession,
      shall be delivered to the Buyers' office, with forwarding costs, if any,
      for Byuers' account.

                  

                

        

         

      

      
        	
                Cl. 18

              	
                The
      Sellers confirm that to the best of their knowledge the vessel is not, and
      will not be at the time of delivery, blacklisted by any port, terminal,
      nation or organisation and is eligible for trading to/bunkering in any
      part of the world.

              

      

      

      
        	
                Cl. 19

              	
                Vessel
      to continue to be traded in the Jacob-Scorpio Tanker Pool with an extended
      lock-in period of three years, provided the Pool remains in existance as
      provided in the Pool Agreement. The new Principals are not to time-charter
      out the vessel unless the Pool so
decides.

              

      

      
        
           

          
            	
                     

                  	
                    
                      
                        A
      seperate Supplement Agreement hereto will be issued and signed by both
      prior to signing this Memorandum of
  Agreement.

                      

                    

                  

          

           

        

      

      
        	
                Cl. 20

              	
                The
      details of the sale to be kept private and confidential as long as
      possible. should, however, details of the sale become known or reported on
      the market, neither the Buyers, nor the Sellers shall have the right to
      withdraw from the sale or fail to fulfil their obligations under this
      Memorandum of Agreement.

              

      

      

      
        	
                Cl. 21

              	
                At
      the time of delivery the vessel and all her equipment (incl. Tank Cleaning
      System and segregated ballast tanks) to comply with Marpol, USCG and
      IMO-regulations as evidenced by statutory
  certificates.

              

      

      

      

      

      
        	
                On
      behalf of the Sellers

                 

              	 
      	
                On
      behalf of the Buyers

                 

              
	
                 
      

                 

                 

                 

              	 
      	
                 
      

                 

                 

                 

              

      

       

       

      
 

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

       

      Addendum
No. 1

      to
the

      MOA
dates _______________ – MT ________________

      made
between

       

       ___________________
(the Sellers)

       

      and

                   ___________________
(the Buyers)

      

      It has
been today mutually agreed between the Sellers and the Buyers that following
documents are to be provided by Sellers respectively Buyers as per Clause 8 of
the above mentioned Memorandum of Agreement at the time of
delivery.

      

      
        	
                 
      

              	
                I.

              	
                List of documents to
      be provided by the Sellers

              

      

      

      
        	
                 
      

              	
                1.

              	
                Bill
      of sale (3 originals) notarised and in a form acceptable to the Marshall
      Islands Maritime Authority

              

      

      
        	
                 
      

              	
                2.

              	
                Certified
      Minutes of the Board of directors approving the sale of the vessel and the
      MOA and appointing relevant attorneys to attend the closing meeting and
      the physical delivery of the vessel and to sign all relevant documentation
      (including but not limited to the MOA, the protocol of delivery and
      acceptance, the deposit release letter,
etc.)

              

      

      
        	
                 
      

              	
                3.

              	
                Certified
      Power of attorney

              

      

      
        	
                 
      

              	
                4.

              	
                Extract
      from the public registry

              

      

      
        	
                 
      

              	
                5.

              	
                Copies
      of the Articles of Association/by laws in
German

              

      

      
        	
                 
      

              	
                6.

              	
                Transcript
      of registry showing that the vessel is registered in the name of the
      Sellers and free of any registered encumbrances dated as of the date of
      closing (to be faxed with originals to
follow)

              

      

      
        	
                 
      

              	
                7.

              	
                Deletion
      certificate issued by the registry from which the vessel is presently
      registered (to be faxed with original to
follow)

              

      

      
        	
                 
      

              	
                8.

              	
                Confirmation
      of class issued within 72 hours prior to delivery (after underwater
      survey)

              

      

      
        	
                 
      

              	
                9.

              	
                Letter
      confirming no blacklisting (clause 18 of the
  MOA)

              

      

      
        	
                 
      

              	
                10.

              	
                Letter
      confirming that the vessel has not touched bottom since per delivery to
      the sellers and/or her last
dry-dock

              

      

      
        	
                 
      

              	
                11.

              	
                List
      of outstanding guarantee claims

              

      

      
        	
                 
      

              	
                12.

              	
                Within
      15 days from the delivery of the Vessel, one copy of the Vessel's current
      complete CSR File certified by the flag administration from which the
      vessel is being transferred

              

      

      

      
        	
                 
      

              	
                II.

              	
                List of documents to
      be provided by the Buyers

              

      

      

      
        	
                 
      

              	
                1.

              	
                Minutes
      of the Board of directors (with signatures to be certified by a Notary
      Public in Monaco) approving the purchase of the vessel and the MOA and
      appointing relevant attorneys to attend the closing meeting and the
      physical delivery of the vessel and to sign all relevant documentation
      (including but not limited to the MOA, the protocol of delivery and
      acceptance, the deposit release letter,
etc.)

              

      

      
        	
                 
      

              	
                2.

              	
                Power
      of attorney (with signatures to be certified by a Notary Public in
      Monaco)

              

      

      
        	
                 
      

              	
                4.

              	
                Certificate
      of Goodstanding

              

      

      
        	
                 
      

              	
                5.

              	
                Copies
      of the Articles of Association/by
laws

              

      

      
        	
                 
      

              	
                6.

              	
                Certificate
      of Incumbency

              

      

      
        	
                 
      

              	
                7.

              	
                Payment
      Letter

              

      

      

       

      
        	
                On
      behalf of the Sellers

                 

              	 
      	
                On
      behalf of the Buyers

                 

              
	
                 
      

                 

                 

                 

                 

              	 
      	
                 
      

                 

                 

                 

              

      

      

      Date __________________d1075050_ex10-5.htm

     

    EXHIBIT
10.5

    

    
      	 
      	 
      	
               

              ORIGINAL

               

            
	 
      	 
      	 
      

    

    
 

    FORM
OF

    

    
       Code
word for this Charter Party 

      "SHELLTIME
4"

    

     

    Issued
December 1984

     

    Time
Charter Party

    LONDON,
31.10.2006

     

    IT IS
THIS DAY AGREED between

     

    Of Marshall
Islands                        
(hereinafter referred to as "Owners"), being owners of the

     

    good
motor tanker vessel
called

     

    (hereinafter
referred to as "the vessel") described as per Additional Clauses Number 1,
hereof and

    of                                                    
(hereinafter referred to as "Charterers"):

     

    
      	
              Description
      and

              Condition
      of

              Vessel

            	
              1.     At the
      date of delivery of the vessel under this charter

              (a)  
      she shall be classed: (See additional clause
      1)

              (b) 
      she shall be in every way fit to carry crude petroleum and/or its clean and dirty
      products; always
      in accordance with vessel's class certificates, coating manufacturers
      resistance list and the vessel's trim, stability and stress requirements,
      maximum
      3 grades (within
      the vessel's natural segregations), but always excluding asphalt ,
      bitumens, casinghead — LWSR permitted only if compatible with coating
      manufacturers resistance list. Charterers not to re-dellver the vessel
      with last cargo orimulsion, CBFS or LSWR.

               

            
	 
      	
              (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 the hull stress calculator and radar)
      in a good and efficient state:

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

              (e) she
      shall be in every way fitted for burning

              at sea fuel oil
      with a maximum viscosity of Centistokes at-50-dogreos
      Contigrade/any

              commercial grade of
      fuel oil ("ACGFO") for main
      propulsion, marine diesel oil/ ACGFO for
      auxiliaries

              In  port
      marine diesel oil/ ACGFO for auxiliaries:

              IFO
      and MGO as per clause 29 hereof

              (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 lawito enable her to perform the
      charter service without delay:

              (h)      she
      shall comply with the description in Intertanko Questionnaire 88
      and OCIMF questionnaire Form B appended hereto,
      provided however that if there is any conflict between the provision
      of Form B Inertanko Questionnaire 88 and
      OCIMF questionnaire and any other provision, including this Clause
      I,of this charter such other provision shall govern. See vessel's description rider
      Clause I,

               

            
	
              Shipboard

              Personnel

              And
      their Duties

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

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

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

              (iii)
      all shipboard personnel shall be trained in accordance with the relevant
      provisions of the International Convention on Standards of Training,
      Certification and Watchkeeping for Seafarers, 1978; as amended from time to
      time.

              (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.

              (v)
      All ship board personnel
      will comply with the OCIMF Guidelines for the control of drugs and alcohol
      on board ship.

              (vi)
      Owners guarantee that the Owners or management company as the case may be
      shall always be in compliance with ISM Code or any future
      equivalent.

              (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 and day, but always in accordance with
      the laws of the place of loading or discharging ( as the ease 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 Clause l and 2 (a), exercise due diligence so to maintain or
      restore the vessel.

                (ii)  if
      at any lime 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 such reduction of hire is in
      respect of the time lost, such time shall be excluded from any calculation
      tinder Clause 24.

                (iii)  If
      owners are in breach of their obligation under Clause 3(i) Charterers may
      also so notify Owners in writing: an if, after the expiry of 30 days
      following the receipt by Owners of any such notice, Owners have failed to
      demonstrate to Charterers' reasonable satisfaction the exercise of due
      diligence as required in Clause 3 (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 of otherwise (including without limitation Charterers'
      rights under Clause 21 hereof.

                 

              
	
                Period Training

                Limits

              	 
      
	 
      	
                4. Owners agree to let
      and Charterers agree to hire the vessel for a period of See Additional Clause 23
      (Period clause which will reflect agreement in main
      terms)

                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 . See Additional Clause 3
      (Trading Limits)

                 

                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, 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. (Including but not limited to,
      extra premiums due under Owners loss of hire insurance
      cover)

                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 expect 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. Vessel not to be used as
      storage tanker nor as
      a shuttle vessel
      for more than 2 months per year.

                The
      vessel shall be delivered by Owners in: DOP I SP/SA
      MED/BSEA/UKCONT/USAC/USG CARIES/EAST COAST CANADA in Owner's option. It is
      also Owners option to deliver the vessel at sea 5 days steaming south of
      Los Angeles. Should Owners exercise such option and deliver the vessel at
      this position then the Charterers will have the right to redeliver the
      vessel at sea in the Pacific Ocean in a position which is no further from
      Balbao than the delivery position, and

                redelivered
      to Owners at a port in dropping last outbound sea
      pilot One (I) safe port United States Atlantic coast, United States Gulf
      Caribbean, East coast Canada, Mediterranean, United Kingdom Continent
      European Mediterranean

                At
      Charterers' option.

              
	 
      	 
      
	
                Laydays/

                Cancelling

              	
                5. The vessel shall not
      be delivered to Charterers before December 2006 — January 2007
      to be narrowed (See also Rider Clause 37) and Charterers shall have
      the option of cancelling this charter if the vessel is not ready and at
      their disposal on or before

              
	 
      	 
      
	
                Owners
      to

                Provide

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

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              Rate
      of

              Hire

            	
               

              8. Subject as herein
      provided, Charterers shall pay for the use and hire of the vessel at the
      rate of USD          
      per day, and pro rata for any part of a day, from the time and date
      of her delivery UTC (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 in immediately
      available funds to: In US$ to Owners designated Bank :

              In U.S.A. Dollars per
      calendar month in advance, less:

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

              (ii) any
      amounts disbursed on Owners' behalf, any advances and commission 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' hank
      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 days 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 Owners' suite shall be at Charterers' disposal,
      reserving only proper and sufficient space for the vessel's master,
      officers, crew, tackle, apparel, furniture, provisions and stores,
      provided that the weight of stores on board shall not, unless specially
      agreed, exceed 550
      tonnes at any time during the charter period.

            
	 
      	 
      
	
              Overtime

            	
              11.      Overtime
      pay of the master, officers and crew in accordance with ship's articles,
      even telecommunication
      expenses and gratuities to third parties shall be for Owners Charterers'
      account , when
      incurred as a result of complying with the request of Charterers or
      their agents, for loading, discharging, heating of cargo, bunkering or
      tank cleaning. Charterers shall pay together
      with hire lumpsum USD         per
      month covering all the above.

            
	 
      	 
      
	
              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, Reports to be completed in
      English.

            
	 
      	 
      
	
              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
      confonn 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 the form acceptable to Owners. Invoking the letter of
      Indemnity as per additional Clause Na. 25 of the
      riders.

            
	 
      	 
      
	
              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 early termination of this charter) accept and pay for all
      bunkers remaining on board, at their respective purchase
      price which to be supported by vouchers. 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 that may have in
      force from time to time, if so required by Charterers, provided supplies
      agree.

            
	 
      	 
      
	
              Stevedores,

              Pliots,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 arc 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$     
      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.

            
	 
      	 
      
	
              FinalVoyage

            	
               

              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 lime 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 constmctive 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 cease at noon on the day of 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 interniption
      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; time lost by vessel for obtaining
      all necessary authorisation or certificates for trading, 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 without5 the
      written consent or instructions of Charterers or their agents, or at 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);

              (vi) Delay for failure in obtaining
      M.O.C vetting approvals
      See additional clause No. 22.4, then without prejudice to
      Charterers' rights under clause 3 or to any other rights of Charterers
      hereunder or otherwise the vessel shall be of from the commencement of
      such loss of time until she is again ready and in 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 in Clause 21 (a), puts into
      any port other than the port to which she is bound on the instructions of
      Charterers, the port charges, pilotage and other expenses at such port
      shall be borne by Owners. Should the vessel be driven into any port or
      anchorage by stress of weather hire shall continue to be due and payable
      during any time lost thereby.

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

              (e) Time during
      which the vessel is off hire under this charter shall count as part of the
      charter period.

              (e)
      Time during which the vessel is off hire under this Charter Party shall
      count as part of the Charter Period, but Charterers shall have the option,
      in the event off-Hire period exceeds 20 days, to add such time over the
      said allowance to the relevant Charter period, by notifying the Owners 30
      days prior to the natural expiration of each Charter period, as the case
      may be.

            
	 
      	 
      
	
              Periodical

              Drydocking

            	
               

               

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

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

              (b) If a periodical
      drydocking is carried out in the port offered by Charterers (which must
      have suitable accommodation for the purpo0se and reception facilities for
      tank washings an 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 or 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.

              Time and 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
      of 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.

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

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Ship
      Inspection

            	
               

              23.           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

              Description

            	
              24.        (a)
      Owners guarantee that the speed and consumption of the vessel shall be as
      follows:-

            
	
              And

              Performance

            	
              Average
      speed

              In
      knots

               

              Laden

            	
              Maximum
      average bunker consumption

              main
      propulsion-auxiliaries

              Fuel
      oil/diesel
      oil fuel oil/diesel oil

              Tonnes                      tonnes

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              Ballast

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              See
      Vessels Description Clause Number 1 and over performance Clause Number
      26

               

              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       knots
      laden and          
      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"), than for the purpose of calculating any
      increase or decrease of hire under this Clause 24 the maximum recognized
      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 5
      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 its Clause 24 (a), then an amount equal to the value
      at the hire rate or 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 dale
      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

              (d)
      Owners a

              (e) the case
      may require. Payments in respect increase of hire arising under this
      Clause shall be made promptly after receipt by Charterers of all the
      information necessary to calculate such increase.

               

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              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 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.

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

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

              (ii) any
      claim ( whether brought by Charterers or any other person) arising out of
      any loss of or damage to or in connection with cargo. Any 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.

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

               

            
	 
      	 
      
	
              Injurious

              Cargoes

            	
               

               

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

               

            
	 
      	 
      
	
              Grade
      of Bunkers

            	
               

              29.           Charterers
      shall supply marine diesel oil/fuel oil with a maximum viscosity of 380
      Centistokes at 50
      degrees-Centigrade according
      to RMG 35/ACGFO for
      main propulsion and diesel oil/ACGFO according
      to DMA for the auxiliaries. If Owners require the vessel to be
      supplied with more expensive bunkers they shall be reliable for the extra
      cost thereof. (See
      also additional Clause 38).

              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.

            
	 
      	 
      
	
              Disbursements

            	
              30.      Should
      the master require advances for ordinary disbursements at any port,
      Charterers or their agents shall make such advances to him, in
      consideration of which Owners shall pay a commission of two and a half per
      cent, and all such advantages and commissions 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 places 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.  Charters 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 or Owners' account. Any such requisition
      period shall count as part of the charter
  period.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Outbreak
      of War

            	
               

              33. If war hostilities break out
      between any two or more of the following countries: USA., Russia and CIS
      States, PRC, UK, Netherlands, Germany, France, Italy in so far that such
      areas have been declared War Risk areas by the War Risk rating committee
      in London as recognised by the Lloyds of London both Owners and Charterers
      have the right to cancel this Charter. However neither party shall be
      entitled to terminate this Charter Party on account of minor and/or local
      warlike operation or economic warfare anywhere which will not interfere
      with the vessel's trade. This cancellation to be declared within a period
      of 15 days from the date in which the Hull & Machinery insurers
      officially report the outbreak of such war. If war or hostile
      break out between two or more of the following countries: USA, U.S.S,R.,
      P.R.C., U.K., Netherlands, 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,
      Charterers shall reimburse Owners for any additional insurance premia,
      (net of discounts)
      including Hail & Machinery and Loss of  Hire, crew bonuses
      and other expenses which are reasonably incurred by Owners as a
      consequence of such orders, provided that Charterers are given notice of
      such expenses as soon as practicable and in any event before such expenses
      are incurred, and provided further that Owners obtain from their insurers
      a waiver of any subrogated rights against Charterers in respect of any
      claims by Owners under their war risk insurance arising out of compliance
      with such orders.

            
	 
      	 
      
	
              War
      Risks

            	
              35. See Rider
      Clause 32 (a) The maser 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 maser 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 or period"), then Charterers or
      their agents shall be immediately notified by telex or radio message, 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 period, 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 its as may be affected at any place which they or the maser
      may in their or his discretion select within the trading limits of this
      charter and such discharge shall be deemed to be due fulfillment of
      Owners' obligations under this charter so far as the cargo so discharged
      is concerned.

              (c)           The vessel shall
      have liberty to comply with any directions and 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 or by any
      committee or person having under the terms of the war risk insurance on
      the vessel the rigt 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 reasons 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
      maser 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 fulfillment of Owners' obligations under this
      charter so far as cargo so discharged is concerned.

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

            
	 
      	 
      
	
              Both
      to blame

              Collision
      Clause

            	
               

               

              36. If the liability for any collision in
      which the vessel is involved while performing this charter falls to be
      determined in accordance with the laws of the United States of America,
      the following provision shall apply; "If the ship comes into collision
      with another ship as a result of the negligence of the other ship and any
      act, neglect or default of the master, mariner, pilot or the servants of
      the carrier in the navigation or in the management of the ship, the owners
      of the cargo carried hereunder will indemnify the carrier against all
      loss, or liability to the other or non-carrying ship or her owners in so
      far as such loss or liability represents loss of, or damage to, or any
      claim whatsoever of the owners of the said cargo, paid or payable by the
      other or non- carrying ship or her owners to the owners of the said cargo
      and set off, recouped or recovered by the other or non-carrying ship or
      her owners as part of their claim against the carrying ship or
      carrier".

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

              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 shalt
      be payable according to the York/Antwerp Rules, 1974,
      1994, as 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 earner 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 demised 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."

               

            
	 
      	 
      
	
              TOVALOP

            	
               

              39.           Owners
      warrant that the vessel is:

              (i)
      a tanker in
      TOVALOP and.

              (ii)
      Properly enter in Steamship Mutual P&I
      Club

              and
      will so remain during the currency of this charter.  See ITOPF Clause
      28

              When an escape of
      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$106) 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 in 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 thereon 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 no 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 Conmet
      Regarding an Interim Supplement to Tanker Liability for Oil Pollution
      dated 14th January 1971, as
      amended from time to time.  The term "Oil", "Pollution Damage",
      and "Tonnage" shall for the purposes of this Clause 39 have the meaning
      ascribe to them in TOVALOP

            
	 
      	 
      
	
              Export
      Restriction

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

              Charterers
      shall procure that all bills of lading issued under this charter shall
      contain the following clause:

              "If
      any laws rules or regulations applied by the government of the country in
      which the cargo was produced and/or shipped, or any relevant agency
      thereof, impose a prohibition on export of the cargo to the place of
      discharge designated in or ordered under this bill of lading, carriers
      shall be entitle 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 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 the charter, the
      reference to a bill of lading being deemed to be references to this
      chapter.

            
	 
      	 
      
	
              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 as per LMAA Arbitration Clause
      (see clause 27 of the rider) the English Courts
      to whos jurisdiction the parties hereby agree.

              (c)
      For smaller disputes
      upto US$ 100,000 the small claim procedure laid by the London Maritime
      Arbitrators Association and any subsequent amendment thereto shall
      apply.

              (d) Notwithstanding
      for 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 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 of his
      award;

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

              (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.

            
	 
      	 
      
	
              Construction

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

              "Charterers"
      Additional Clauses from No.1 to No. 40 attached hereto are to be
      incorporated into this Charter Party.

            
	 
      	 
      
	 
      	 
      

    

     

    

    

    
      	 
      	
              The
      Owners :

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              The
      Charterers :

            	 
      	 
      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    ADDITIONAL
CLAUSES

     

    TIME CHARTER PARTY
DATED

     

    1. VESSEL'S DESCRIPTION
CLAUSE

    Owners
guarantee the following speed/consumption in moderate weather up to and
including Beaufort Scale Force 5 excluding voyages of less than 24 hours and
areas such as restricted channels and where slow speed is required by
authorities of the port. Calculation to be made from full away on leaving last
pilot to end of seapassage,

     

    Class:
ABS +Al (E), Crude and Oil Product Carrier, +AMS, +ACCU, SH, SHCM, ReS, VBC(-L)

    Deadweight:
72,515 mt

     

    

    
      	
              Gross
      Tonnage: Net Tonnage:

            	
              41,526
      mt

              20,970
      mt

            

    

    

    Main
dimensions:

    LOA:
227.8 Metres

    LBP: 219
Metres

    Beam:
32.24 Metres

    Depth:
20.6 Metres

     

    Cargo
cubic capacity (including slop tanks)(98%): 83,058.20 m3

     

    Main
engine/power: MAN B&GW6S60MC — 14,100 BHP

     

    Speed/consumption

     

    All
consumption expressed in tonnes of IFO 380 per day, unless otherwise specified.
Consumption up to Beaufourt 5 included, at service speed.

    

    

    
      	
              Ballast

            	
              Laden

            
	
              14.5
      knots on 37.0 mt + 3.0 mt

            	
              14.0
      knots on 37.0 mt + 3.0 mt

               

            
	
              Maintain
      Cargo Temperature upto 135 F

            	
              10
      mt Ifo

               

            
	
              Increase
      Temperature from 44 To 66 C

            	 
      
	
              (Air
      0 Deg - Sea 5 Deg) in 96 Hours

            	
              120
      mt Ifo/Total

               

            
	
              Inerting
      all tanks by IGS

            	
              20
      mt Ifo per 36 Hrs or 13.3 mt Ifo per day

               

            
	
              Diesel
      generator idle

            	
              3.0
      mt Ifo

            
	
              Boilers
      idle

            	
              4.0
      mt Ifo

               

            
	
              Discharging
      in 24 hrs

            	
              32.0
      mt Ifo + 12.0 Mt of mgo

            
	
              Loading

            	
              10.0
      mt Ifo

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      

      
        	
                Ballasting/Deballasting     

              	
                8.0 mt Ifo X 12 Hrs

              
	
                 

              	
                 

              
	
                Butterworth all tanks about 36 hrs 

              	
                17.0 mt Ifo

              

         

        Vessels full description as given and vessel speed and consumptions are
guaranteed as average speed for voyages over 24 hrs and subject to vessel not
remaining idle in tropical waters for more than 15 days, Actual speed and
consumptions are to be compared against the TCP figures above and shall be
mutually revised/agreed between Owners and Charterers after six months of
trading however final consumptions to be in line for with those of similar
vessels/engines. No claims in respect of the Vessel's performance shall be
submitted by either party during the first six months of trading. The speed and
consumption so agreed by Owners and Charterers to be included into an addendum
to be attached to this TCP.

         

        	
                Cargo System/pumps:  

              	3
      steam driven centrifugal pumps of 2,000 Cu M/hr each
	
                 

              	
                 

              
	
                Ballast system/pumps: 

              	
                2
      electric driven centrifugal pumps of 1,200 Cu M/hr each

              
	
                 

              	
                 

              
	
                Auxiliary
      boilers: 

              	
                2
      Aalborg 2.0 ton/hr x 16.6 Kg/cm2

              
	
                Exhaust:   

              	
                1 Kangrim 1.0 ton/hr x 6 Kg/em2

              
	
                 

              	
                 

              
	Mooring equipment:  	according
      to OCIMF requirements
	 	 
	Lifting equipment: 	1
      hose handling crane 15 mt

      

                                                      

    

    2.   COFR
CLAUSE

    If U.S.A.
trade all cost payable per call related to COFR and OPA 90 to be paid by
Charterers to Owners against relevant documents, Owners to pass any relevant
discount on the above to Charterers.

    

     

    3.  TRADING LIMITS
CLAUSE

    Vessel to
trade between good and safe ports/places, always afloat, worldwide within the
current Institute Warranty Limits, however excluding: Albania, Turkish
controlled Cyprus, Arab League boycotted countries, Sierra Leone, Liberia,
Haiti, Orinoco river, Caripito, Somalia, Eritrea,Yugoslavia and former
Yugoslavian republics (but including Omisalj and Rijeka), North Korea, Kampuchea
and Vietnam, any voyage which will incur the risk of black listing and/or
boycotting, war zones as defined by Lloyds of London and any other areas to
which restrictions may be imposed by the United States, or the United Nations,
or the flag state, The vessel is not allowed to trade Cuba during the last 6
months of the c/p. The vessel can trade Israel on a case-by-case basis and
subject to the Owner's consent, Charterers may be allowed to order the ship to
any war zones as defined by Lloyd's of London upon payment by Charterers of any
additional insurance premiums required by the vessel's underwriters for such
breach subject to owners prior consent which shall not be unreasonably withheld.
Charterers may be allowed to breach Institute Warranty Limits, however breach of
IWL to be always subject to owners/head owners approval on a case by case basis
and upon payment by Charterers of any additional insurance premiums required by
the Vessel's Underwriters for such breach. Vessel not to force ice nor follow
ice-breakers,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    4.  EXXON DRUG
CLAUSE

    Owners
warrant that it has a policy on drug and Alcohol abuse ("Policy") applicable to
the vessel which meets or exceeds the standards in the Oil International Marine
Forum Guidelines for the Control of Drug and Alcohol onboard Ship. Under the
Policy, alcohol impairment shall be defined as a blood alcohol content of 40
mg/I00 ml or greater; the appropriate seafarers to be tested shall be all
vessel's officers and the drug / alcohol testing and screening shall include
unannounced testing in addition to routine medical examinations. An objective of
the Policy should be that the frequency of the unannounced test be adequate to
be as an effective abuse deterrent, and that all officers to be tested at least
once a year through a combined program of announced testing, and routine medical
examinations. Owners further warrant that the policy will remain in effect
during the term of this charter and that the owners shall exercise due diligence
to ensure that the policy is complied with,

    

     

    5.  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 any interest of the vessel
borne by the owner, hire shall not be payable in respect of any period during
which the vessel is not at Charterers' use and all extra expenses shall be for
Owners' account.

     

    6.  STS -
LIGHTERING CLAUSE

    Owners
shall allow transfer of cargo between the vessel and another vessel made fast
alongside or while underway. However such procedure always subject to master's
approval and to be in accordance with the ICS/OCIMF Ship to Ship Transfer guide
(Petroleum), All extra equipment required and extra expenses incurred for such
transfer operation shall be provided by Charterers for their
account,

     

    7.  FINANCIAL
RESPONSIBILITY IN RESPECT OF POLLUTION CLAUSE

    (1)Owners warrant that
throughout the currency of this Charter they will provide the vessel with
the following
certificates:

     

    (a) Certificates
issued pursuant to the Civil Liability Convention 1969 (`CLC"), and pursuant to
the 1992 protocols to the CLC, as and when in force

     

    (b) Certificates
issued pursuant to the Section 1016 (a) of the Oil Pollution Act 1990, and
Section 108 of the Comprehensive Environmental Response, Compensation and
Liability Act 1980, as amended in accordance with Part 138 of Coast Guard
Regulations 3 CFR, so long as these can be obtained by the owners from or by
(identify the applicable scheme or schemes)

     

    (c) Any other
similar certificates of responsibility which may be required of Owners during
the currency of this Charter Party to the extent that such certification can be
readily and commercially obtained such that a prudent owner trading for his own
account would obtain such certification.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (2)
Notwithstanding anything whether printed or typed herein to the
contrary,

     

    (a) save as
required for compliance with paragraph (1) hereof, owners shall not be required
to establish or maintain financial security or responsibility in respect of oil
or other pollution damage to enable the vessel lawfully to enter, remain or
leave any port, place, territorial or contiguous waters of any country, state or
territory in performance of this Charter

     

    (b) Charterers
shall indemnify owners and hold them harmless in respect of any loss, damage,
liability or expense (including but not limited to the costs of any delay
incurred by the vessel as a result of any failure by the charterers promptly to
give alternative voyage orders) whatsoever and howsoever arising which owners
may sustain by reason of any requirement to establish or maintain financial
security or responsibility in order to enter, remain in or leave any port, place
or waters, other than to the extent provided in paragraph (1)
hereof.

     

    (c) Owners
shall not be liable for any loss, damage, liability or expense whatsoever and
howsoever arising which charterers and/or the holders of any bill of lading
issued pursuant to this Charter may sustain by reason of any requirement to
establish or maintain financial security or responsibility in order to enter,
remain or leave any port, place or waters, other than to the extent provided in
paragraph (1) hereof.

     

    
      
        	
                (3)

              	
                

                  Owners
      warrant that they have and will maintain through the period of this
      charter party
      the Standard Oil Pollution Insurance cover issued by the vessel's P
      & I club (currently USD One
billion)

                

              

      

       

    

    
      	
              (4)

            	
              if
      requested by Charterers, Owners shall promptly furnish to the Charterers
      proper evidence of such P & I Insurance and Excess Insurance
      immediately upon signing this charter or any time during the charter term.
      The above warranty is to be regarded as an essential part of this charter,
      which is conditional on its truth or performance, so that the breach
      entitles the charterers in eharterer's option, to terminate the charter
      and/or recover any damages allowable in
Law.

            

    

     

    Charterers
warrant that terms of this clause will be incorporated effectively into any bill
of lading issued pursuant to this charter,

     

    8.  NOTICE
CLAUSE

    Owners
and Charterers to give delivery/re-delivery notices, respectively: 15, 10 days
approximate and 7, 5, 3, 2, 1 days definitive,

     

    9.  ENGLISH
LANGUAGE CLAUSE

    Owners/Managers
undertake to have English speaking personnel available to ensure appropriate
communications between Chatterers/Owners/Managers/Agents/ Authorities/ Terminal
Officials.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    10.  CHANGE OF
OWNERSHIP CLAUSE

    Throughout
the duration of this Charter party, the Owners shall have the right to sell the
vessel or to change management of the vessel, subject to the prior consent of
Charterers, which shall not be unreasonably withheld.

     

    11.  REMEASURING
CLAUSE

    Owner
guarantee to immediately upon Charterers' request remeasure the vessel's DWT for
the purpose of satisfying certain port/terminal regulations; such remeasurement
will be performed by the Vessel's Registry subject availability and in
accordance to the Vessel's Flag state regulations. All time and expenses for
remeasurement to be for the Charterers' account against Owners' proper
documentation and invoice.

     

    12.  ITF
CLAUSE

    Ref. to clause 1. Owners warrant that
the vessel has I.T.F. or
equivalent certificate on board. In any event of the vessel being delayed
by no compliance with the above or being rendered inoperative by strikes, labour
stoppages, or by any difficulties due to vessel flag, ownership, crew, terms of
employment of officers or, crew, or any other vessel under the same ownership,
operation or control, all time lost is to be considered as off hire and expenses
to be for Owners' account.

     

    13.  IGS/SBT/COW
SYSTEMS CLAUSE

    Owners
warrant that the vessels is equipped with an inert gas system and segregated
ballast tanks on board the vessel and said system are in working order and shall
be operational during the duration of this charter,

     

    In the
event is required by terminal personnel or independent inspectors to breach the
inert gas system for the purpose of gauging, sampling, temperature determination
or ascertaining remaining on board quantities after discharge, the master shall
comply with these requirements consistent with safe operation of the vessel and
regulations of the port.

     

    If
requested by Charterers, Owners agree to conduct crude oil washing of all cargo
tanks at discharge port(s) simultaneously with discharge
operations.

     

    If the
above systems are not in good working conditions due to the vessel/crew/Owners'
negligence and is causing delay in vessel's normal operations, the vessel will
be put off hire for such time actually lost and bunkers consumed shall be for
Owners' account.

     

    14.  HEATING
CLAUSE

    Vessel to
load cargo up to and maximum 165 degrees Fahrenheit. Vessel to be able through
the time charter period to maintain the cargo temperature up to maximum of 135
degrees Fahrenheit. Vessel to heat up to 10 degrees Celsius in 96 hours, but
cargo temperature never to exceed 145 degrees

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Fahrenheit.

     

    15.  CLEANING
VESSEL CLAUSE

    Owners/Master
to be at Charterers' disposal for all tank cleaning making full use of the
vessel's crew and equipment. Owners, master and crew to use best endeavour to
minimise cleaning time and expenses.

     

    16.  CAST
IRON CLAUSE

    Owners
warrant that all riser valves and fittings, outboard of the last fixed rigid
support to the vessel's deck that are used in the transfer of cargo or ballast
will be made of steel or nosular iron and that only one steel reducer or spacer
will be used between the vessel's valve and the loading arm. The fixed rigid
support must be designed to prevent both lateral and vertical movement of the
transfer manifold

     

    17.  CARGO
RETENTION CLAUSE

    In the
event that any cargo remain on board upon completion of discharge, Charterers
shall have the right to claim against Owners an amount equal to the FOB port of
loading value of such cargo plus freight due with respect thereto, provided that
volume of such cargo is liquid, pumpable and reachable by vessel's normal
discharge equipment as determined by an independent surveyor. The independent
surveyor to be mutually agreed by both parties,

     

    18.  ELIGIBILITY
CLAUSE

    Owners
warrant the vessel is in all respects eligible under applicable conventions,
laws and regulations for trading to the ports and places as specifies under this
time charter. Owners warrants that vessel should have onboard for inspection by
the appropriate authorities, all certificates, records, compliance letters,
contingency plans and other documents required for such service, including but
not limited to, the US Coast Guard Certificate of Financial Responsibility and
the Certificate required by the International Convention on Civil Liability for
Oil Pollution Damage 1969,
as amended.

     

    Owners
further warrant that the vessel does, and will comply with all applicable
conventions, laws, regulations and ordinances of any international, national
states or local government entity having jurisdiction including but not limited
to the US. Port and Tanker Safely Ad, as amended, the US Federal Water Pollution
Control Act as amended, the International Convention for the Prevention of
Pollution from Ships (MARPOL 1973) as amended together with 1978 protocol and
1984 amendments thereto and the International Convention for Safety of Life at
Sea (SOLAS 1974) as amended together with 1978 Protocol and 1981/1 983 amendment
thereto, IMO regulations.

     

    Any
delays, losses, expenses or damages arising as a result of failure to comply
with this clause, shall be for Owner's account and charterers shall not be
liable for any delay caused by Vessel's failure to comply the above
warranties.

     

    Notwithstanding
any other provisions to the contract, if during the currency of the Time Charter
party any laws and/or regulations are appraised and engaged prohibiting or
restricting the employment of the vessel in her reasonably intended trade,
Charterers shall without prejudice have the option to cancel the Time Charter
Party, unless Owners decide to make the vessel in full compliance with such laws
and/or regulations whereby the vessel can trade fully and freely according to
the terms of the Charter Party.

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    19.  COMPLIANCES
WITH REGULATIONS CLAUSE

    Owners
warrant that all trading certificates will remain valid during the course of
this Chatter Party and the vessel will comply with all regulations in force al
the ports within the trading range, as defined in C1.3 of this
rider. If vessel fails to comply with the above, any damages, costs, delays or
losses incurred will be, in any ease, for Owners account and Charterers shall
have the option to put the vessel off-hire. Vessel shall not be put off-hire for
alleged non-compliances only.

     

    Should
new legislations, rules and regulations ho adopted by any country, government
body of other legislative authority so to affect the tradability of the vessel
to any country, port or place under the terms of this charter party, then Owners
and Charterers undertake to act reasonably in all circumstances, in a spirit of
good cooperation, to discuss and find the right solution(s).

     

    20.  LIBYAN
CERTIFICATE CLAUSE

    If
required for calls to Libya, Charterers shall arrange for the Vessel's
certificates to be translated into the Arabic language for their risk and time,
and at Charterers' cost for the translation.

     

    21.  O.C.I.M.F.
CLAUSE

    Ref, to
Clause 1, Owners warrant that the vessel fully complies with Standards and
Recommendations OCIMF for Oil Tankers, 1981 International safety Guide for Oil
Tankers and Terminals, Standards for Oil Tankers Manifold and Associated
Equipment (latest edition), Ship to Ship Transfer Guide (Petroleum) (latest
edition) and Recommendation for Equipment Employed in the mooring of the Ship at
single point Moorings (latest edition) and any future amendment
thereto.

     

    Should
new legislations, rules and regulations adopted by any country, government body
of other legislative authority so to affect the tradability of the vessel to any
country, port or place under the terms of this charter party, then Owners and
Charterers undertake to act reasonably in all circumstances, in a spirit of good
cooperation, to discuss and find the right solution(s).

     

    22.  VETTING
CLAUSE

    1..Throughout the duration of this
charter, owners to arrange for the following oil company inspections at
their time and expense: bp, shell, exxon/mobil, chevrontexaco and total, subject
always to (i) the vessel's trading pattern, (ii) the oil company's acceptance
criteria regarding new building vessels, (iii) the availability of inspectors at
that time and (iv) that owners requests for vetting inspections are not declined
unreasonably for oil companies' reasons.

     

    2.      however,
since the vessel is a new building, owners shall be granted a period of 3
(three) months from the completion of the first voyage under this charter to
have the vessels inspected by the majors listed above, but always subject to the
limitations provided in subparagraph (1) above.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    3. if during
the charter period, the vessel is found to be unacceptable by any of the major
oil companies, listed in subparagraph (1) above, owners will immediately take
steps to rectify any outstanding deficiencies at owners' expense and shall have
the vessel re-inspected by the involved major oil company as soon as
practicable, but always subject to the limitations provided in subparagraph (1)
above.

     

    4. in the
event that

     

    (a) either
the vessel fails to obtain the acceptance(s) as per paragraph 2) above and she
remains unacceptable for one or more oil companies for sixty (60) days after the
time limit provided therein are expired, or

     

    (b) the
vessel remains unacceptable for any of the above major oil companies as per
paragraph 1) above for 45 days after she has been found unacceptable as per
paragraph 3) above,

    charterers
shall have the right to put the vessel off-hire until missing acceptance(s) are
reinstated, always subject to the limitations provided in subparagraph (1)
above

     

    5           the
Owners will endeavour to arrange for newbuilding inspection from as many oil
companies as possible before delivery.

     

    23.  PERIOD AND
OPTION

    Owners
agree to let and Charterers agree to hire the vessel for a period of five (5)
years plus/minus thirty (30) days in Charterers option.

     

    24.  PUMPING
CLAUSE

    Owners
warrant vessel is capable of discharging her entire cargo within 24 hours or
maintain 100 PSI at ship's rail provided shore facilities are capable of
receiving same. If vessel fails to maintain this discharge rate, Owners are to
instruct master to clarify by protest letter or remarks in time sheets,
countersigned by receivers, the reason of such failure. If vessel's performance
is below above referenced standard and pumping is delayed due to vessel's
deficiency, owners shall be responsible for any excessive pumping time and
should it become necessary to withdraw the vessel from the berth all expenses
are to be for Owners' account and time to be considered off-hire. Additional
time to be allowed for COW in accordance with vessel's technical
description.

     

    25.  LOI
CLAUSE

    STANDARD
FORM LETTER OF INDEMNITY TO BE GIVEN IN RETURN FOR DELIVERING CARGO WITHOUT
PRODUCTION OF THE ORIGINAL BILL OF LADING

     

    [P&I
wording to be included]

     

    STANDARD
FORM LETTER OF INDEMNITY TO BE GIVEN IN RETURN FOR DELIVERING CARGO AT A PORT
OTHER THAN THAT STATED IN THE BILL OF LADING

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    [P&I
wording to be included]

     

    STANDARD
FORM LETTER OF INDEMNITY TO BE GIVEN IN RETURN FOR DELIVERING CARGO AT A PORT
OTHER THAN THAT STATED IN THE BILL OF LADING AND WITHOUT PRODUCTION OF THE
ORIGINAL BILL OF LADING.

     

    [P&I
wording to be included]

     

    26.  OVERPERFORMANCES
CLAUSE

    Notwithstanding
anything contained in clause 24 hereabove, Charterers will not pay more than the
rate provided in clause 8 and Owners are not entitled to ask compensation for
vessel overperformances.

     

    27.  LMAA
ARBITRATION CLAUSE

    All
disputes or differences arising out of this contract which cannot be amicably resolved shall be
referred to arbitration in London. Unless the parties agree upon a sole
arbitrator, one arbitrator shall be appointed by each party. In the case of
arbitration on documents, if the two arbitrators so appointed are in agreement
their decision shall be final. In all other cases the arbitrators so appointed
shall appoint a third arbitrator and the reference shall be the three-man
tribunal thus constituted.

    If either
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 way of
substitution for two (2) weeks after the other party, having appointed his
arbitrator, has (by telex or letter) called upon the defaulting party to make
the appointment, the president for 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 been appointed in accordance with the terms of the
agreement,.

    This
contract is governed by English Law and there shall apply to all proceedings
under this clause the Terms of the London Maritime Arbitrators Association
current at the time when the arbitration proceeding were commenced. All
appointees shall be member of the Association.

     

    28.  I.T.O.P.F.
CLAUSE

    Notwithstanding
anything to the contrary in this Charter, there shall be no obligation upon the
Owner or the Vessel to be a participant in the tanker Owners voluntary agreement
concerning liability for oil pollution dated January 7th. 1969 as amended
("TOVALOP"). Owner, however, warrants that it is a member of the International
Tanker Owners Pollution Federation ("ITOPF") and that Owner will retain such
membership during the entire period of the services of the Vessel under this
Charter.

     

    29.  VESSEL'S
MAINTENANCE CLAUSE

    Upon
reasonable notice, Owners to give to Charterers reasonable access to all
documents regarding the vessel's performances whether aboard, ashore in Owners'
or Owners Management's office together with reasonable access to the vessel for
inspection purposes.

    Owners
and Charterers agree that a meeting will take place as often as necessary, but
al least twice a

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    year,
between Owners and Charterers' technical staff in order to review and ensure
prompt settlement of any technical problem that may have arisen,

    During
the charter party period(s), the Charterers to have the option every six (6)
months to arrange for an independent surveyor to inspect the vessel at
Charterers cost and expenses. The copy of the inspection report to be supplied
to both Owners and Charterers.

     

    30.  VESSEL'S FLAG
AND CLASSIFICATION SOCIETY CLAUSE

    For the
duration of the charter party period the Owners will register the vessel into
the Marshall Islands Registry and fly its flag. The vessel was built and is
classed under ABS and the Owners intend to maintain this classification during
the period of the Charter Party. Owners have the option to change classification
within the IACS group for important reasons only.

     

    War
Clause

    (clause
n. 33 of Intertanktime 80 in substitution of 'War Risk Clause' n. 35 of
Shelltime 4)

     

    31.  ADDITIONAL
WAR EXPENSES CLAUSE

    If the
Vessel is ordered to trade in areas were there is war (de facto or de jure) or
/and where the area in question has been declared additional war risk premium
areas by the Vessel's war risk insurers. Charterers shall reimburse Owners for
any additional insurance premia, crew bonuses and other expenses which are
reasonably incurred by Owners as a consequence of such orders, provided that
Charterers are given notice of such expenses as soon as practicable and in any
event when 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 claim by owners under their war risk insurance arising out
compliance with such orders. For the purpose of this Charter Party, Charterers
liability for war risk insurance premiums is to be based upon the insured value
of the Vessel, which at delivery is United States Dollars (insured value to be
advised) Charterers to benefit from rebates from hull insurers on war risk
insurance premiums.

     

    32.  WAR RISKS
CLAUSE

    (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
reasonable opinion of the Master or Owners it becomes, for any of the reasons
set out in Clause 32 (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 become 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 of such part of it as may be affected at any place which they or the
Master may in their or his descretion select within the trading limits of this
charter and such discharge shall be deemed to be due fulfilment of Owner's
obligations under this Charter so far as cargo so discharge 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, water, delivery or any
other wise whatsoever given by the government of the state under whose flag of
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 de facto government or local authority or by any
committee or person having under the terms of 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, 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 opinion select and their 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 Bill of Lading issued under this Charter shall contain
the Chamber of Shipping War Risks clause 1952. See clause 31 (Additional War
Expenses).

    Owners to
be entitled to insure their interest in the vessel for such terms as they deem
fit up to its total insured value and also in the hire against any of the risks
likely to be involved thereby, and Charterers shall make refund on demand of any
additional premium thereby incurred and

    1
Notwithstanding the terms of Clause 20 hire shall be payable for all time lost
including any loss owing to loss or injury to the Master, officers or crew or to
refusal by the Master, officer or crew to proceed to such zone or to be exposed
of such risks.

    2. In the
event of the wages of the Master and/or officers and/or crew and/or the cost of
provisions and/or stores for deck and/or engine room and/or insurance being
increased by reason of or during the existence of any of the matter mentioned in
Section (A) the amount of any increase shall be added to the hire and paid by
the Charterers on production of Owners' account thereof.

    Furthermore,
notwithstanding any
other provision of this Charter Party, any war bonus payable to Master
and/or officers and/or crew shall be for Charterers' account,

     

    33  VESSEL'S
TRACKING CLAUSE

    It is
agreed that Charterers may from the time of fixing until completion of the
Charter period employ an Inmarsat C Tracking system on the Vessel. All
registration/communication costs relating to this tracking system will be for
the Charterers' account. Charterers will advise when the system is operative and
confirm termination upon completion of Charter. Owners to supply lnmarsat C
number (9 digits, beginning with 4), manufacturer, make etc, model No., terminal
S/W version prior to vessel's delivery.

     

    34  WAR P&I
LIABILITIES INCLUSION CLAUSE

    Owners to
ensure that Hull War Risk insurance incorporates provisions for War P & I
liabilities inclusion clause.

     

    35  SECURITY
CLAUSE (replaced by Bianco ISPS clause for
TCP)

    (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 Party, 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 Party, 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
the Ship Security Officer (SSO)/Master with their full style contact details
and, where sub-letting is permitted under the terms of this Charter Party, shall
ensure that the contact details of all sub-charterers are likewise provided to
the CSO and the SSO/Master. Furthermore, the Charterers shall ensure that all
sub-charter parties they enter into during the period of this Charter Party
contain the following provision:

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

    (ii) Except as otherwise provided in this
Charter Party, 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) Notwithstanding
anything else contained in this Charter Party all delay, costs or expenses
whatsoever arising out of or related to security regulations or measures
required by the port facility or any relevant authority in accordance with the
ISPS Code including, but not limited to, security guards, launch services, tug
escorts, port security fees or taxes and inspections, shall be for the
Charterers' account, unless such costs or expenses result solely from the
Owners' negligence. All measures required by the Owners to comply with the Ship
Security Plan shall be for the Owners' account.

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

     

    36.  AIR POLLUTION
CLAUSE

    Owners
will endeavour to comply with IMO Regulations regarding air pollution, however
Charterers always to provide bunkers to the Vessel in compliance with applicable
IMO Regulations.

     

    37.  LAY-CAN AND
NON-DELIVERY CLAUSE.

    Deleted -
 not
applicable

     

    38.  BUNKER
QUALITY CLAUSE

    
      	
              A.  

            	
              charterers
      to ensure that bunkers supplied during the currency of this charter shall
      be suitable for the vessel's engines, charterers to supply: fueloil 380
      cst (iso 8217:1996(e) (and as subsequently amended) (grade ring 35) and
      mgo dma.

            

    

     

    
      	
              B.  

            	
              without
      prejudice to anything else contained in this charter party, the charterers
      shall supply fuels of such specifications and grades to permit the vessel,
      at all times, to comply with the maximum sulphur content requirements of
      any emission control zone when the vessel is ordered to trade within that
      zone.

              the charterers also warrant that any bunker suppliers,
      bunker craft operators and bunker surveyors used by the charterers to
      supply such fuels shall comply with regulations 14 and 18 of marpol annex
      vi, including the guidelines in respect of sampling and the provision of
      bunker delivery notes. The Charterers shall indemnify, defend and hold
      harmless the owners in respect of any
loss,

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    liability,
delay, fines, costs or expenses arising or resulting from the charterers'
failure to comply with this sub-clause (b).

     

    
      	
              C.

            	
              provided
      always that the charterers have fulfilled their obligations in respect of
      the supply of fuels in accordance with sub-clause (b), the owners warrant
      that:

            

    

    
      	
               
      

            	
              (i)

            	
              the
      vessel shall comply with regulations 14 and 18 of marpol annex vi and with
      the

            

    

     requirements
of any emission control zone; and

    (ii)    the vessel
shall be able to consume fuels of the required sulphur content

    when
ordered by the charterers to trade within any such zone

    subject
to having supplied the vessel with fuels in accordance with sub-clause (b), the
charterers shall not otherwise be liable for any loss, delay, fines, costs or
expenses arising or resulting from the vessel's failure to comply with
regulations 14 and 18 of marpol annex vi.

     

    
      	
              D.

            	
              for
      the purpose of this clause, "emission control zone" shall mean zones 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

            

    

     

    
      	
              E.  

            	
              owners
      use fobas (lloyds) petroleum services analysis or equivalent for
      determining bunker quality which charterers also recognize. charterers
      recognizing and accepting vps applied test methods and written sampling on
      board procedures.

            

    

     

    
      	
              F.  

            	
              should
      any dispute arise as to the quality of bunkers supplied under this charter
      party, then owners and charterers are to immediately agree an independent
      surveying firm, specializing in bunker analysis to attend the vessel and
      analyse bunkers on board following internationally recognized test methods
      such asiso or similar. failing agreement within 72 hours of first
      notification of suspected defect in supply owners shall have the right to
      appoint their own surveyor whose findings shall be binding on both
      parties. if the analysis shows that the supply is out of specification,
      charterers to immediately arrange for replacement of the bunkers. all
      time, costs, expenses, surveys to be for charterers account. should the
      analysis confirm the supply is within specification, all time, costs,
      expenses, surveys will be for owners
accounts,

            

    

     

    
      	
              G.  

            	
              vessel
      to keep some gasoil
      on board for cleaning, manoevring and mandatory and operational
      equipment.

            

    

     

    39.  MARINE GROWTH
CLAUSE

    If the
Vessel stays or is laid up for more than 25 days in a port and/or anchorage
and/or berth, or 15 days in tropical waters then the Owners to notify the
Charterers that the vessel's performance may be affected. Owners will not be
responsible for changes in the Vessel's description of speed and consumptions.
Charterers to have the right to provide for scamping of underwater hull
(against acceptance of Owners letter of indemnity for damages to hull and or
paint (to be provided)), but Owners description to be re-instated only after the
certification by an independent surveyor confirming that the hull state is
recovered, except for fair wear and tear, as it was at the time of Vessel's
delivery,

     

    40.  ASSIGNMENT
AND SUBLET CLAUSE

    Notwithstanding
any other provision of this charter, Charterers may assign all of their rights
and obligations under the charter to any of Charaterers' related or affiliated
company, subject to Owners approval which shall not be unreasonably withheld.
Charterers shall also have the right to sublet the

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Vessel,
but in such an event, Charterers shall always remain responsible to Owners for
the fulfilment of charter in all its terms and conditions, save that the Owners
shall always be entitled to assign the benefit of this charter party to any
bank(s) or other institution(s) in connection with the vessel's
financing.

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