Spreadsheet: vkaminski__40808__LNG Contract Summary
Sheet: HG

LNG Ship Time Charter Party Contract Summary
Ship: [NAME]
Buyer: | Enron LNG Shipping Company
[NAME]: | Heogh Galleon Shipping Company
Term: | 17 years (Starting between November 2000 and December 2000)
Extension: | Buyer may extend the term and conditions of this agreement for 3 months to 10 years with notification
 | of extension due on or before 24:00 GMT on December 15, 2015.
Ship Specs: | LNG Capacity - 87,608 cubic meters
 | Fuel Oil Capacity - 6,614 cubic meters
 | Diesel Capacity - 207 cubic meters
 | Guaranteed Speed - 17.5 knots
Hire Rate (Price): | Fixed Rate---------> |  | Start to Dec-2002         -    $9,500 / day
 |  |  | Jan-2003 to Dec 2018   -   $16,000 / day
 | O&M Rate---------> |  | 2000  -  $10,350 / day
 |  |  | 2001  -  $11,922 / day
 |  |  | after  02 TBA
 | All O&M rates are to be revisited at least 60 days before delivery date and changed if necessary with
 | mutual agreement.  Rates after 2001, will be determined annually.
Sub-Charter: | Buyer has the right to sub-charter the vessel.  However, if the sub-charter total hire rate is more than
 | $2,500/day greater than this charter then the difference above the $2,500/day diff is to be shared by
 | the ship owner and enron on an equal basis from the start of the charter until December 31, 2002 after
 | which Enron keeps the full sub charter amount.
Primary Terminals: | [NAME] |  |  | ADGAS, Abu Dhabi
 | [NAME], USA |  |  | [NAME], Qatar
 | Elba Island, USA |  |  | Qatargas, Qatar
 | CMS Trunkline, USA |  |  | Oman, Oman
 | EcoElectrica, Puerto Rico |  |  | Dabhol Power Company, India
 | Atlantic LNG, Trinidad
 | These ports are guaranteed by seller to be compatable with the vessel.  Should the buyer wish to
 | move the vessel to a port other than a Primary terminal, any costs associated with making the ship
 | compatable with the other port will be for Enron's account.
 |  |  | assumes use of Boil off Gas
Guarenteed Fuel Consumption: |  |  | Speed | Laden | Ballast
 |  |  | 17.5 | 142 Tons | 142 Tons
 |  |  | 16.5 | 123 Tons | 123 Tons
 |  |  | 15.5 | 108 Tons | 108 Tons
 |  |  | 14.5 | 93 Tons | 93 Tons
 | Fuel consumption higher than above results in payments from owner to charterer.
Boil-Off: | Seller agrees to use boil-off as fuel for the main engine as much as possible.  For purposes of this
 | deal, each cubic meter of LNG boil off is equal to [NAME] of fuel oil.  [NAME] guarentees'
 | maximum boil-off per day of .275% of capacity based on specific gravity of .46
Failure to Deliver: | If the seller fails to deliver the ship by December 1, 2000 then seller must pay damages
 | to buyer not to exceed $2,000,000.  If delivery has not occurred 60 days after 12/1/2000,
 | buyer has the right to cancel the charter.
Longevity Study: | Buyer has the right to require owner to complete a ship longevity study in order to make
 | informed decisions about furthering the charter.  Notice of request for study must be given
 | to [NAME] by December 31, 2014 and the study must be complete by August 31, 2015.
 | As a result of the study, buyer has the right to cancel the charter and return the ship w/ 30
 | days notice after receipt of the Longevity Study.  All costs of the study are split 50/50.
 | If the ship is removed from service as a result of the longevity study, the seller may not put
 | the ship into service without the concent of buyer.
[NAME]'s termination: | Buyer has right to terminate this agreement for convenience between contract date and
 | December 31, 2006 with 15 days notice, unless buyer has assigned charter to an affiliate
 | or notified the seller of a designated trade for the vessel.  Under this termination right,
 | the buyer must pay the termination fee as follows:
 |  | 2000 |  | 18000000
 |  | 2001 |  | 18000000
 |  | 2002 |  | 18000000
 |  | 2003 |  | 18000000
 |  | 2004 |  | 17000000
 |  | 2005 |  | 16000000
 |  | 2006 |  | 15000000
[NAME]'s termination: | If Cargo Tank Stress Corrosion Cracking continues after delivery and the estimated cost of
 | repairs is > $10,000,000 and the buyer does not agree to pay the repair costs in excess of
 | $10,000,000 then the seller has the right to either pay for all the repair costs or to terminate
 | this agreement in full.
Regulatory Changes: | If governmental regulations cause added repairs necessary to maintain the ships rating then
 | the buyer is liable for up to$200,000 per calendar year for repairs.  [NAME] is liable for repairs
 | in excess of $200,000 but not to exceed $300,000 * years remaining in term.  If repairs are in
 | excess of buyer's maximum then buyer has the right to pay or to refuse to pay.  If buyer
 | refuses to pay then seller has the right to pay excess repair costs or cancel the charter.
Sales Contract Force Majeure: | If a force majeure event occurs that is expected to be less than 24 months then it is considered
 | to be Temporary Force Majeure.  Under Temporary Force Majeure, the seller will allow buyer to
 | find other means of utilizing the vessel and the buyer will continue to pay hire per schedule 1.1.
 | If the force majeure event is expected to last longer than 24 months then the buyer has the right
 | to cancel the charter and pay the Permanent Force Majeure Termination Payment which is
 | the greater of the above termination payment chart or $15,000,000 except in 2018 when the
 | payment is $7,500,000
Off-Hire: | If seller causes an event to occur that results in an Event of Off-Hire (Section 14.1) then the
 | seller will cease to pay hire during this time with the exception that buyer agrees to allow up
 | to 3 days per calendar year of off hire events without reducing hire payments.
Consequential Damages: | NONE  (Section 22.5)