charter party bp sample

7/28/2019 Charter Party BP Sample

1/51

-Tim eCharterAgreem ent-SenatoreShippingCom panyLim itedandBPShippingLtd.

ORIGINAL

BPTIME3

TIME CHARTERPARTY

PRO DUC EDINASSOCIATIONW ITHTHEBALTICAN DINTERNATIONALM ARITIM ECO UNCIL(BIM CO )

1stEdition-February2001BPSHIPPINGLIM ITED

RegisteredinEnglandandW ales:No.140132

RegisteredO ffice:-Breakspear-Park,BreakspearW ay,Hem elHem pstead,Herts,HP24U L.

Page 1of 51

3/31/201http://print.onecle.com/contracts/scorpi -tankers/b -charte -2007-07-20.shtml


2/51

INDEX TO CLAUSES - BPTIME3

ClausePage

Commercial Provisions

1

DeliveryandCharterPeriod6

2Cancellation

63

Redelivery6

4NoticesofDeliveryandRedelivery

75

BunkersonDeliveryandRedelivery7

6Cargoes

77

TradingLim its

78

Hire7

Owners' Rights and Obligations

9 O w ners'Obligations8

10 M asterandCrew9

11 BillsofLadingandW aybills9

12 DrugsandAlcoholPolicy 10

13 Dry-docking10

14 Lien10

Charterers' Rights and Obligations

15 Charterers'O bligations10

16 SpaceavailabletoCharterers11

17 LoadingandDischarge/Ship-to-shipTransfers 11

18 Perform anceofVessel-SpeedandConsum ption11

19 O ff-hire11

20 Layingup12

21 Storage12

22 Sub-let13

Page 2of 51



3/51

23 Supernum eraries13

24 Vessel/CargoInspections/BunkerSurveys13

Special Provisions

25 ClauseParam ount 13

26 Salvage14

27 Ice14

28 Requisition14

29 O utbreakofW ar14

30 W arRisks14

31 GeneralAverage

15

32 NewJason15

33 Both-to-blam eCollision16

34 O ilPollutionPrevention16

35 Exceptions17

36 Law17

2

Page 3of 51



4/51

Codew ordforthisCharterparty"BPTIM E3"

TIME CHARTERPARTY

Date20th July 2007

PREAMBLE

It is this day agreed between SENATORE SHIPPING COMPANY LIMITED

of

("O w ners")beingow ners/disponentow nersofthem otor/steam tankvessel(deleteasapplicable)called

SENATORE ("Vessel")

andBP SHIPPING LIMITED

of

("Charterers")thattheserviceforw hichprovisionishereinm adeshallbesubjecttotheterm sandconditionsofthisCharterw hichcom prisesthisPREAM BLE,PART1andPART2,togetherw iththeOCIM FVesselParticularsQuestionnairecurrentatthedatehereofandtheBPTIM E3Q uestionnaire(togetherreferredtoasthe"Questionnaire")asattachedhereto.

Unless the context otherwise requires, words denoting the singular include the plural and vice versa.

In the event of any conflict between the provisions of PART I and PART 2 of this Charter, the provisions of PART 1 shall prevail.

In the event of any conflict between the provisions of PART 1 or PART 2 of this Charter and any provisions in the Questionnaire,the provisions of PART 1 or PART 2 of this Charter shall prevail.

3

Page 4of 51



5/51

PART 1

A. Name of Vessel: SENATORE

B. Charter Period: three (3) years plus/minus thirty (30) days in Charterers option

C. Laydays/Cancelling:

Com m encing:0001hourslocaltim eon1st September 2007("Com m encem entDate")Cancelling:1600hourslocaltim eon30th September 2007("CancellingDate")

D. Place of Delivery: Dropping outward sea pilot one (1) port United States Gulf / Caribbean Sea / United States AtlanticCoast / United Kingdom/Continent /Mediterranean / East Coast Canada within IWL in Owners option*

E. Vessel shall be delivered with the following cargo history:

F. Place of Redelivery: Dropping outward sea pilot one (1) port United Kingdom/Continent/ Mediterranean Sea /East CoastCanada within IWL / United States Atlantic Coast / United States Gulf / Caribbean Sea / in Charterers option

G. Bunkers on Delivery and Redelivery: expected bunker o/b on arrival Cristobal on delivery: 300mt FO RMG 380, 40 mt MGODMA

H. Rate of Hire: US $26,000 per day/pro rata plus US $1,500 lumpsum, per month for overtime, victualling and representation

I. Owners' Payment Details: The Royal Bank of Scotland Plc - London CreditAcct:SenatoreShippingCom panyLim itedAccountNr:SEN ASHI-USD1Iban:GB53RBOS16630000345745 Sw ift:RBO SG B2L

4

Page 5of 51



6/51

J. Bunker Specifications: IFO RMG 380 and MGO DMA, as per ISO 8217-2005, as amended from time to time, always

complying with local and IMO SECA regulations and restrictions.

K. Permitted Cargoes: Crude petroleum and/or its Clean Petroleum Products and Dirty Petroleum Products including CBFS and

LSWR however always excluding, Orimulsion, Asphalt, Bitumen, and Casing Head and always in accordance with vesselscoating resistance list, class certificates and vessel's trim, stability and stress requirements. Charterers not to redeliver vesselwith last cargo CBFS or LSWR Maximum three grades within vessel's natural segregations with double valve separation. Ifheat is required, the vessel will maintain cargo loaded temperature maximum 135 deg F. Maximum loaded temperature 75deg C

L. Trading Limits: Worldwide within IWL and always excluding Albania, North Korea, Orinoco River, Haiti and/or Cuba, Iraq,Yemen, Cambodia, Nonoc Island, Liberia. Sierra Leone, Lebanon, Amazon River, Chinese River Ports, Russian Pacific Ports,Somalia and areas where UN or the flag state sanctions exists. Trading with Israel is permitted except during the last three

(3) months of the charter period. Vessel not to force ice nor follow ice breakers

M. Additional Clauses:

5

Page 6of 51



7/51

PART 2

CO M M ERCIALPROVISIO NS

1. DELIVERY AND CHARTER PERIOD

1.1 Ow nersagreetoletandCharterersagreetohiretheVesselfrom thetim eofdeliveryforaCharterPeriodassetoutinPART1,SectionB.TheVesselshallbeplacedatthedisposalofCharterersatthePlaceofDeliveryassetoutinPART1,SectionD.TheVesselshallnotbedeliveredtoChartererspriortotheCom m encem entDate.

1.2 UpondeliverytheVesselshallbetight,staunch,strong,ineverywayfittedforservice,w ithcargospaces,facilitiesandequipm entreadytoreceive,carryanddelivercargo,andw ithafullcom plem entofM aster,officersandcrew fullycom petent,certifiedandexperiencedtoperform theservicescontractedfor,andinallm aterialrespectsm eetingthedescriptionoftheVesselsetoutintheQuestionnaire.W ithoutprejudicetotheaforesaid,upondeliveryOw ners,M aster,officers,crew andalldocum entsshallconform inallpartsandinallm aterialrespectsw iththeresponsessubm ittedintheQuestionnaire.

2. CANCELLATION

2.1 IftheVesselisnotreadyinaccordancew ithClause1andatCharterers'disposalbytheCancellingDate(whichterm shallforthepurposesofthisClauseincludeanynew CancellingDatedeterm inedunderthisClause2)CharterersshallhavetheoptionofcancellingthisCharterw ithinforty-eight(48)hoursaftertheCancellingDate.

2.2 Ow nersundertaketonotifyCharterersprom ptlyifatanytim eO w nersortheM asterhavereasontobelievethattheVesselm aynotbedeliveredinaccordancew ithClause1bytheCancellingDate.Suchnotificationistobeinw ritingandshallstatethedateandtim ethatO w nersexpecttheVesseltobereadytobedelivered.

2.3 Ifatanytim eitappearstoCharterersthattheVesselw illnotbedeliveredinaccordancewithClause1bytheCancellingDate,Charterersm ayrequireOw nerstostateinw ritingthedateandtim ethattheyexpecttheVesseltobereadytobedelivered,suchstatem enttobegivenw ithinninety-six(96)hoursofCharterers'request.

2.4 Ifthedateandtim enotifiedbyOw nerspursuanttosub-clauses2.2,2.3or4.1fallsaftertheCancellingDatethenCharterersshallhavetheoptionofcancellingthisCharterw ithinonehundredandtw enty(120)hoursofreceiptofthesaidnoticefrom Ow nersorw ithinforty-eight(48)twenty four (24)hoursaftertheCancellingDate,w hicheverisearlier.

IfCharterersdonotexercisetheiroptiontocancelthisCharterthenthenew CancellingDateforthepurposeofthisClause2shallbetw elve(12)hoursafterthedateandtim enotifiedbyOw nerspursuanttosub-clauses2.2or2.3,orsuchotherdateandtim easm aybem utuallyagreed.

2.5 IfOw nersfail,orfailtim eously,torespondinw ritingtoCharterersw henrequiredtodosoundersub-clause2.3,CharterersshallhavetheoptionofcancellingthisCharterw ithinonehundredandtw enty(120)hoursaftertheperiodallow edforOw ners'responseundersub-clause2.3,orw ithinforty-eight(48)hoursaftertheCancellingDate,w hicheverisearlier.

3. REDELIVERY

3.1 TheVesselshallberedeliveredtoOw nersatthePlaceofRedeliverystipulatedinPART1,SectionFontheexpiryoftheCharterPeriod,oncom pletionofitsfinalvoyageondroppinglastoutw ardboundpilot,orasm ayotherw isebeagreed.

3.2Notw ithstandingtheprovisionsofsub-clauses1.1and3.1hereof,shouldtheVesselattheexpiryoftheCharterPeriodbeonaballastvoyagetothePlaceofRedeliveryoronaladenvoyage(w hichforthepurposesofthisClauseshallbedeem edtohavecom m encedattheendofthesea

6

Page 7of 51



8/51

passagetothefirstloadport),thenCharterersshallhavetheuseoftheVesselatthesam erateandconditionsforsuchextendedtim easm aybenecessaryforthecom pletionofthevoyageonw hichitisengagedand,w hererequired,itsballastvoyagetothePlaceofRedelivery.

4. NOTICES OF DELIVERY AND REDELIVERY

4.1 Thebelow noticesshallbegivenbyOw nerstoCharterersinthecaseofdelivery,andbyChartererstoOw nersinthecaseofredelivery:-

4.1.1 O necalendarm onthpriortodelivery/redelivery,approximatenoticeshallbegivenspecifyingtheanticipateddatefordelivery/redelivery.

4.1.2 Fifteendayspriortodelivery/redelivery,approximatenoticeshallbegivenspecifyingthefirm dateandestim atedtim eofdelivery/redelivery.

4.1.3 Thereafterseven,three,tw oandoneday(s)priortodelivery/redelivery,noticeshallbegivenreconfirm ingoradvisingofanyadjustm enttothedateandtim egiveninaccordancewithsub-clause4.1.2.Inaddition,duringthelastfourteendayspriortodelivery/redelivery,prom ptnoticeshallbegivenofanyvariationofm orethansix(6)hoursintheestim atedtim eofdelivery/redelivery.

4.2 IftheChartergrantsOw nersorCharterersanoptionforthePlaceofDeliveryorRedelivery,noticeoftheanticipatedPlaceofDelivery/Redeliveryshallbegivenonecalendarm onthbeforedelivery/redelivery,andfirm nom inationofthePlaceofDelivery/Redeliveryshallbegivenfifteendaysbeforedelivery/redelivery.Places ofdelivery/ redelivery shall be nominated together with definitive notices as per clause 4.1.3 and if know n

expected port of delivery/ redelivery be given w ith notices in 4.1.1 and 4.1.2.

5. BUNKERS ON DELIVERY AND REDELIVERY

5.1 TheVesselshallbedeliveredw ithaboutthequantityoffuelsstatedinPART1,SectionGandshallberedeliveredw ithaboutthesam equantity.

5.2 Charterersshallacceptandpayforallfuelsonboardatthetim eofdeliveryandOw nersshallacceptandpayforallfuelsonboardatredelivery(whetherattheendoftheCharterPeriodoruponterm inationoftheCharterforotherreasons),allatthepricepaid(netofalldiscountsandrebates)assubstantiatedbysuchdocum entsasm ayreasonablyberequired.Charterers'paym entforfuelsonboardatthetim eofdeliveryshallbem adetogetherw iththefirstpaym entofhire.Charterersshallbeentitledtodeductfrom thelastpaym entofhirethevalueoffuelsanticipatedtobeonboardatredelivery.

6. CARGOES

6.1 Charterersshallhavetherighttoshipalllaw fulcargoesfallingw ithinthedescriptionsetoutinPART1,SectionK.

6.2 Charterersshallnotship,norperm ittobeshipped,anycargodangeroustotheVessel.

7. TRADING LIMITS

TheVesselshallbeem ployedinlaw fultradeswithinInstituteW arrantyLim itsandw ithintheTradingLim itssetoutinPART1,SectionL.

8. HIRE

8.1 Charterersshallpayhireperdayorprorataforpartofadayfrom thetim etheVesselisdeliveredtoCharterersuntilitsredeliverytoO w nersinthecurrencyandattheratestatedinPART1,SectionH.AllcalculationofhireshallbebyreferencetoUniversalTim eCo-ordinated(UTC).

8.2Thefirstpaym entofhireshallbem adeonoraboutthedateofdelivery,payingthehireinadvanceupto,butnotincluding,thefirstdayofthesucceedingm onth.Allsubsequentpaym entsofhireshallbem adem onthlyinadvanceonthefirstdayofeachcalendarm onthtotheaccountstipulatedinPART1,SectionIinfundsavailabletoOw nerson

theduedate.If,how ever,ina

7

Page 8of 51



9/51

givenm onththeduedateisanon-bankingdayintheUnitedStates(ifhireistobepaidinUSDollars)orinthecountrystatedinPART1,SectionI,thenthesubjectm onth'shireshallbepaidonthenextbankingday.

8.3 Hireforthem onthinw hichtheanticipateddateforredeliveryfallsshallbem adeuptoandincludingtheanticipateddateofredelivery.Anynecessaryadjustm entsshallbem adebypaym entbyO w nerstoCharterersorbyChartererstoOw ners,asthecasem aybe,w ithintw enty-eight(28)daysafterredelivery.

8.4 W herethereisafailuretopayhirebytheduedate,O w nersshallnotifyCharterersinw ritingofsuchfailure.W ithin

five(5)bankingdaysofreceiptofsuchnotificationCharterersshallpaytheam ountdue,failingw hichO w nersshallhavetherighttosuspendtheperform anceofanyoralloftheirobligationsunderthisCharterand/ortow ithdraw theVessel.IfOw nerselecttosuspendperform anceoftheCharterinrespectofaparticularlatepaym ent,theym aystill,notw ithstandingthatsuspensionofperform ance,w ithdraw theVesselfrom theCharterinrespectofthatlatepaym entprovidedtheygiveafurthertw enty-four(24)hours'noticeinw ritingoftheirintentiontowithdraw .Undernocircum stancesshalltheactofsuspendingperform ancebeconstruedasaw aiverbyO w nersoftherighttow ithdraw inrespectofthecontinuingfailuretopayhireoranysubsequentlatepaym entofhireunderthisCharter.Throughoutanyperiodofsuspendedperform anceunderthisClause,theVesselistobeandshallrem ainonhire.Charterersundertaketoindem nifyOw nersinrespectofanyliabilitiesincurredbyOw nersunderthebillofladingoranyothercontractofcarriageasaconsequenceofOw ners'propersuspensionofand/orw ithdraw alfrom anyoralloftheirobligationsunderthisCharter.

8.5 Onproductionofsupportingvouchers,Charterersshallbeentitledtodeductfrom hireanyexpenditureincurredonbehalfofOw nersw hichisforOw ners'accountunderthisCharterasw ellasanyothercostsandexpensesduetoCharterersw hichthisCharterentitlesthem todeductfrom hire.Charterersshallbeentitledtoacom m issionof2.5% onexpendituresettledonbehalfofOw ners.

8.6 Charterersm ay,atanytim eduringthethreem onthspriortotheendoftheCharterPeriodsetoutinPART1,SectionB,deductfrom hireanyam ountw hichtheyreasonablyestim atew illbeduetothem attheendoftheCharterPeriodinrespectofexpenditureonbehalfofO w ners,bunkersonredelivery,anticipatedperform anceclaim sandanyothersim ilarclaim sCharterersm ayhaveagainstOw ners.

OWNERS' RIGHTS AND OBLIGATIONS

9. OWNERS' OBLIGATIONS

9.1 W ithoutprejudicetoClause1,Ow nersshallexerciseduediligencetom aintaintheVesselin,orrestoretheVesselto,theconditionrequiredpursuanttoClause1throughouttheCharterPeriod.

9.2 Ow nersundertakethatfrom thedateofenteringintothisChartertheclassificationsociety,flag,ow nership,m anagem ent(whethertechnicalorcom m ercial)andP&IInsurersoftheVesselshallnotchangew ithoutCharterers'priorconsent.W ithoutprejudicetoanyotherrightthatCharterersm ayhave,abreachofthisprovisionw illentitleChartererstoterm inatethisCharter,w hereuponO w nersshallreim burseCharterersw ithanyhirepaidinadvance

andnotearned.ShouldCharterersw ithholdconsentunderthisClause,thenOw nersm ayrequireChartererstoprom ptlyidentifytothem analternativeacceptabletoCharterers.

9.3 Ow nersundertakethatfrom thedateofenteringintothisChartertheam ountofHullandM achineryinsuranceontheVesselshallnotchangewithoutCharterers'priorconsent,w hichshallnotbeunreasonablywithheld.

9.4 W ithoutprejudicetoClause1,andprovidedalw aysthatOw nersaregrantedareasonabletim etoperform cleaning,Ow nersshallthroughouttheCharterPeriodensurethattheVesselpresentsforloadingw ithitstanks,pum psandpipelinesproperlypreparedtothesatisfactionofanyinspectorappointedbyoronbehalfofCharterersandreadyforloadingthecargospecifiedbyCharterers.Vessel to be delivered with either clean or dirtybackground/ condition.

8

Page 9of 51



10/51

9.5 Ow nersshallrem ainresponsibleforthenavigationoftheVessel,actsofpilots,tugboatsandcrew,sam easwhentradingfortheirow naccount.O w nersundertakethatthroughouttheperiodofthisChartertheyw ill,attheirow nexpense,com plywiththeregulationsinforcefrom tim etotim esoastoenabletheVesseltopassthroughtheSuezandPanam aCanalsbydayandbynightw ithoutdelay.

9.6 W ithoutlim itationtotheforegoing,O w nersshallprovideandpayfor:-

9.6.1 provisions,w ages(includingovertim e),dischargingfeesandallotherexpensesrelatedtotheMaster,officersandcrew ;and

9.6.2 cabin,deck,engine-room andothernecessarystores,includingdom esticw ater(but alw ays excludingfresh water for tank cleaning which shall alw ays be for Charterers account);

9.6.3 radiotrafficandothercom m unicationexpenses;and

9.6.4 insuranceontheVesselfullycoveringP& Irisksand(withoutprejudicetoCharterers'rightstofreelytradetheVessel)standardoilpollutioncoveruptothelevelcustom arilyofferedbytheInternationalGroupofP&IClubs(currentlyUS$1,000m illion),HullandM achineryandbasicW arRisksinaccordancewiththeinform ationsetoutintheQuestionnaire;and

9.6.5 alldocum entationrequiredtoperm ittheVesseltotradewithintheTradingLim itssetoutinPART1,SectionL,includingbutnotlim itedtothecertificatesanddocum entationconfirm edbyOw nersintheQuestionnairetobeinplaceandsuchdocum entationshallbem aintainedinforceduringthecurrencyoftheCharter.

10. MASTER AND CREW

10.1 TheM aster,althoughappointedbyO w ners,shallthroughouttheCharterPeriodbeundertheordersanddirectionsofCharterersasregardsem ploym ent,agencyorotherarrangem entsandshallrenderCharterersallreasonableassistancewiththeofficers,crew andequipm ent(includingbutnotlim itedtoconnectinganddisconnectinghosesforloadinganddischarging,verifyingfuelsam plesandtheprocedureassociatedw iththedeliveryoffuel)andsupplyCharterersw ithsuchinform ationanddocum entationastheym ayfrom tim etotim erequire(includingbutnotlim itedtologs,tim esheets,safetyperform anceinform ationandcertificationrelatingtoofficers,crew orVessel).

10.2 TheM astershall,throughouttheCharterPeriod,operatetheVesselandcarryouthisdutiesinam annerconsistentw ithgoodseam anship,com plyingw iththerecom m endationssetoutinthelatesteditionofISG O TTandm aintainingthesafetyoftheVessel,itscrew ,thecargoandtheenvironm ent,andshallprosecuteallvoyageswithduedespatch.

10.3 TheM astershallobserveregulationsandrecom m endationsastotrafficseparationandrouteingasissued,from tim etotim e,byresponsibleorganisationsorregulatoryauthorities,orasprom ulgatedbytheStateoftheflagoftheVesselortheStateinw hichm anagem entoftheVesselisexercised.

10.4 IfCharterersaredissatisfiedw iththeconductoftheMasteroranyofficerorcrew m em ber,Ow nersshallonreceivingparticularsofthecom plaint,prom ptlyinvestigatethesam e,and,ifnecessary,m akeachangeintheappointm ent.

11. BILLS OF LADING AND WAYBILLS

11.1 Billsofladingandw aybillsshallbesignedasCharterersdirect,w ithoutprejudicetothisCharter.Charterersherebyindem nifyOw ners:-

11.1.1 againstallliabilitiesthatm ayarisefrom thesigningofbillsofladingandw aybillsinaccordancew iththedirectionsofChartererstotheextentthattheterm sofsuchbillsofladingandw aybillsim posem oreonerousliabilitiesthanthoseassum edbyOw nersundertheterm softhisCharter;and

11.1.2 againstclaim sbroughtbyholdersofbillsofladingandw aybillsagainstOw nersbyreasonofanydeviationorderedbyCharterers.

9

Page 10of 51



11/51

11.2 Allbillsofladingandw aybillsissuedunderthisChartershallincludeaClauseParam ountandW arRisks,New Jason,GeneralAverage,andBoth-to-Blam eCollisionclauses,intheform setoutinthisCharter.

12. DRUGS AND ALCOHOL POLICY

12.1 Ow nersundertakethattheyhave,andshallm aintainforthedurationofthisCharter,apolicyonDrugsandAlcoholAbuseapplicabletotheVessel(the"D&APolicy")thatm eetsorexceedsthestandardsintheOCIMFGuidelinesfortheControlofDrugsandAlcoholOnboardShip1995asam endedfrom tim etotim e.

12.2 Ow nersshallexerciseduediligencetoensurethattheD&APolicyisunderstoodandcom pliedw ithonandabouttheVessel.Anactualim pairm ent,oranytestfindingofim pairm ent,shallnotinandofitselfm eanthatOw nershavefailedtoexerciseduediligence.

13. DRY-DOCKING - see additional clause 6

W ithoutprejudicetoClause19,O w nersshallhavetherightattheirexpensetotaketheVesseloutofservice,includingplacingtheVesselindry-dock.Forem ergencyrepairsthisrightm aybeexercisedinaccordancewithOw ners'discretion.Forroutinem aintenanceandsurveys,therightm ayonlybeexercisedatatim eandplacem utuallyagreeduponbyO w nersandCharterers.

14. LIEN

Ow nersshallhavealienuponallcargoes,hire,sub-hire,freightsandsub-freightsforanyam ountsow edbyCharterersunderthisCharter.

CHARTERER'S RIGHTS AND OBLIGATIONS

15. CHARTERERS' OBLIGATIONS

15.1 CharterersshallfurnishtheMasterw ithfullandtim elyinstructions.

15.2 Charterersshallprovideand/orpayfor:-

15.2.1 allfuelsofaqualitysuitableforburningintheVessel'senginesandauxiliaries(w hichshallcom plyw iththedescriptioninPART1,SectionJ)exceptforquantitiesoffuelconsum edw hiletheVesselisoff-hirewhichshallbeforO w ners'account;and

15.2.2 portcharges,lightandcanaldues,andallotherchargesorexpensesrelatingtoloadinganddischarging;and

15.2.3 agencyfeesfornorm alship'shusbandryatallplacesorportsofcall;and

15.2.4 tow age,pilotageandallm ooring,loadinganddischargingfacilitiesandservices,providedalw aysthatCharterersshallbearnoliabilityforthenegligenceorm isconductexercisedbytheprovidersofsuchservicesandfacilities.

15.3 Anyadditionalprem ium schargedbytheprovidersofoilpollutioncoverbyreasonofloadingordischargingatportsintheUSAorUSA-controlledterritoriesshallbeforCharterers'accountandshallbere-im bursedtoOw nerstogetherw iththeinstalm entofhirenextfallingduefollow ingpresentationtoCharterersofproperreceiptsevidencingpaym ent.

15.4 Charterersw illnotsuffer,norperm ittobecontinued,anylienorencum branceincurredbythem ortheiragents,w hichm ighthavepriorityoverthetitleandinterestofO w ners.

10

Page 11of 51



12/51

16. SPACE AVAILABLE TO CHARTERERS

16.1 Thew holereach,burthenanddecksoftheVessel,anditspassengeraccom m odation(includingOw ners'suiteifany),shallbeatCharterers'disposal,reservingonlyproperandsufficientspacefortheVessel'sMaster,officers,crew ,tackle,apparel,furniture,provisions,storesandlubricatingoil.

16.2 Theweightofstoresandlubricatingoilstoredonboardshallnotatanytim eduringtheCharterPeriod,unlessspecificallyagreed,exceedthetonnageshow nintheQuestionnaire.

17. LOADING AND DISCHARGE / SHIP-TO-SHIP TRANSFERS

17.1 TheVesselshallbeloadedanddischargedatanyport(whichterm forthepurposeofthisChartershallincludeanyport,berth,dock,loadingordischarginganchorageoroffshorelocation,subm arineline,singlepointorsinglebuoym ooringfacility,alongsidevesselsorlightersoranyotherplacew hatsoeverasthecontextrequires)inaccordancew ithCharterers'instructions.BeforeinstructingOw nerstodirecttheVesseltoanyport,Charterersshallexerciseduediligencetoascertainthesafetyofsuchport,butCharterersdonotw arrantthesafetyofanyportandshallbeundernoliabilityinrespectthereofexceptforlossordam agecausedbyCharterers'failuretoexerciseduediligence.

17.2 Charterersshallhavetheoptionoftransferringthewholeorpartofthecargo(whichshallincludetopping-offandlightening)toorfrom anyothervesselincluding,butnotlim itedto,anoceangoingvessel,bargeand/orlighter(the"TransferVessel").

Alltransfersofcargotoorfrom TransferVesselsshallbecarriedoutinaccordancew iththerecom m endationssetoutinthelatesteditionofthe"ICS/OCIMFShiptoShipTransferGuide(Petroleum )".Ow nersundertakethattheVesselanditscrew shallcom plyw ithsuchrecom m endations,andsim ilarlyCharterersundertakethattheTransferVesselanditscrew shallcom plyw ithsuchrecom m endations.Charterersshallprovideandpayforallnecessaryequipm entincludingsuitablefendersandcargohoses.Charterersshallhavetheright,attheirexpense,toappointsupervisory

personneltoattendonboardtheVessel,includingam ooringm aster,toassistinsuchtransfersofcargo.Charterersare permitted to use the vessel for upto maximum two (2) lighterage operations per calendar month.

18. PERFORMANCE OF VESSEL - SPEED AND CONSUMPTION

18.1 UnlessotherwiseorderedbyCharterers,theVesselshallperform allvoyagesattheservicespeedstatedintheQuestionnaire.

18.2 Ow nersw arrantthattheVesselisandshallrem aincapableofm aintaining,throughouttheCharterPeriod,thespeedsandbunkerconsum ptionsforpropulsiondescribedintheQuestionnaireundernorm alw orkingconditionsandinm oderateweather(whichforthepurposeofthisClauseshallexcludeanyperiodsofw indsexceedingForce5ontheBeaufortScale).Charterersshallhavetherighttom akedeductionsfrom hireinrespectofanytim elostandanyadditionalbunkersconsum edbyreasonoftheVessel'sfailuretom aintainthewarrantedcapability.Any over-performance to offset any under-performance provided it is understood that Charterers shall not beunder any obligation to pay any more than the hire rate.

19. OFF-HIRE

19.1 TheVesselshallbeoffhireoneachandeveryoccasionthatthereisalossoftim earisingoutoforInconnectionw iththeVesselbeingunabletocom plywithCharterers'instructions(whetherbywayofinterruptionorreductionintheVessel'sservices,orinanyotherm anner)onaccountof:-

19.1.1 anydam age,defect,breakdow n,deficiencyoforaccidenttotheVessel'shull,m achinery,equipm entorcargohandlingfacilities,orm aintenancethereto;or

19.1.2 anydefaultand/ordeficiencyoftheM aster,officersorcrew ,includingthefailureorrefusalorinabilityoftheM aster,officersand/orcrew toperform theservicesrequired;or

19.1.3 anybreachofsub-clause9.6.5;or

11

Page 12of 51



13/51

19.1.4 anyothercausepreventingthefullw orkingoftheVessel.

Notw ithstandingtheaforesaid,ifthetotallossoftim epursuanttothissub-clause19.1islessthanthreehoursinanyonecalendarm onth,theVesselshallnotbeoff-hire.

19.2 IftheVesseldeviates,unlessorderedtodosobyCharterers,itshallbeoff-hirefrom thecom m encem entofsuchdeviationuntiltheVesselisagainreadytoresum eitsservicefrom apositionnotlessfavourabletoCharterersthanthatatw hichthedeviationcom m enced.ForthepurposesofthisClausetheterm deviationshallincludestopping,reducingspeed,puttingbackorputtingintoanyportorplaceotherthanthattow hichitisboundundertheinstructionsofCharterersforanyreasonw hatsoever,includingform aintenance,dry-docking,takingonstoresor

freshw ater,butshallexcludedeviationsm adetosavelifeorproperty.ShouldtheVesseldeviatetoavoidbadw eatherorbedrivenintoportoranchoragebystressofw eather,theVesselshallrem ainonhireandallportcoststherebyincurredandbunkersconsum edshallbeforCharterers'account.Anyservicegivenordistancem adegoodbytheVesselw hileoff-hireshallbetakenintoaccountinassessingtheam ounttobedeductedfrom hire.

19.3 Anytim eduringw hichtheVesselisoff-hireunderthisCharterm aybeadded,atCharterers'option,totheCharterPeriod.Suchoptionshallbedeclaredinw ritingnotlessthanonem onthbeforetheexpecteddateofredelivery,orprom ptlyifsucheventoccurslessthanonem onthbeforetheexpiryoftheCharterPeriod.IfCharterersexercisetheiroptiontoextendtheCharterPeriodpursuanttothisClause,theCharterPeriodshallbedeem edtoincludesuchextensionandhireshallbepayableattherate(s)w hichw ouldhavebeenpayablebutfortherelevantoff-hireevent.

20. LAYING UP

CharterersshallhavetheoptiontolayuptheVesselataplacenom inatedbythem andacceptabletoOw ners.Charterersshallexerciseduediligencetoascertainthesafetyofsuchplacebutshallbeundernoliabilityinrespectthereofexceptforlossordam agecausedbyCharterers'failuretoexerciseduediligence.IfCharterersexercisetheoptiontolayuptheVesselthenthehirestipulatedinPART1,SectionHshallbeadjustedtoreflectanynetincreaseinexpenditurereasonablyincurred

(includingbutnotlim itedtocostsreasonablyincurredinpreparingtheVesselforlayupasw ellasrestoringittotheconditioninw hichitw asim m ediatelypriortolayingup)ornetsavingw hichshouldreasonablybem adebyO w nersasaresultofsuchlayup.

21. STORAGE

CharterersshallhavetheoptionofusingtheVesselforfloatingstoragebutCharterersundertakenottousetheVesselforfloatingstorageinareasw hereadditionalprem ium sforW arRisksInsurancearechargedbytheVessel'sW arRisksInsuranceunderw riters.

Vessel to be used as a storage tanker maximum 30 days per year, provided that:

a. Storage operations are carried out in a sheltered and safe location at Master's discretion and the vessel can be

at anchor or drifting during floating operations always at Ow ners discretion

b. Extra fresh w ater, if needed, to be for Charterers account.

c. Bunkers consumed during storage operations shall n ot account for vessel's performance as per clause 18.

d. I f the Vessel stays or is laid up for more than 20 days in a port and/ or anchorage and/ or berth, then Owners tonotify Charterers that the Vessel's performance may be affected and Owners w ill not be responsible for changes in

the Vessel's description of speed and consumptions, until the Vessel's hull has been scrubbed which Ow ners shallarrange at their and Charterers' earliest convenience, and which shall be at Charterers' time and expense. For theavoidance of about, under this clause if the vessel stays or is laid up for more than 20 days as a result of Ow nersact and/ or omission and/ or breach of charter then the warranted speed and consumption figures will apply andthe cost of any hull cleaning will be for Owners account, and the vessel will be off-hire for the period of any suchhull cleaning

12

Page 1 of 51



14/51

22. SUB-LET

Charterersm aysub-lettheVesselw ithoutprejudicetotherespectiverightsandobligationsofeitherpartyunderthisCharterand provided Charterers shall r emain responsible towards Owners for the performance of this charterparty.

23. SUPERNUMERARIES

Charterersm aysenduponreasonablenoticesupernum erariesintheVessel'savailableaccom m odationuponanyvoyagem adeunderthisCharter.InsucheventO w nersshallprovideprovisionsandallrequisites,assuppliedtoofficers,exceptalcohol.Charterers shall pay the rate of US$20 per day for each representative while on board of the vessel.Charterers' representative shall sign Ow ners' P&I letter of indemnity prior to boarding

24. VESSEL/CARGO INSPECTIONS/BUNKER SURVEYS

Charterersat their time and expenseshallbeentitledtocausetheirrepresentative(w hichterm includesanyindependentsurveyorappointedbyCharterers)tocarryoutinspectionsoftheVesseland/orobservecargooperationsand/orascertainthequantityandqualityofthecargo,w aterandresiduesonboard,includingthetakingofcargosam ples,inspectionandcopyingoftheVessel'slogs,docum entsandrecords(whichshallincludebutnotbelim itedtothepersonalnotesoftheMaster,officersorcrew relatingtotheoperationoftheVessel,theroughlogbookandcom putergenerateddata)atanyloadingand/ordischargeport.Charterers'representativem ayalsoconductanyoftheaforem entionedoperationsatoroffanyotherporttowhichCharterersm ayrequiretheMastertodiverttheVesselatanytim eafterleavinganyloadingport.Charterersshallobtaintheconsentoftheow nersofanycargoonboardatthetim ebeforerequiringtheVesseltobediverted.

Charterers'representativeshallbeentitledtosurvey,andtakesam plesfrom ,anyoralloftheVessel'scargotanks,bunkerfueltanksandnon-cargospacesatanyplacereferredtoabove.

SPECIALPROVISIONS

25. CLAUSE PARAMOUNT

Charterersundertakethatallbillsofladingandw aybillsissuedunderthisChartershallcontainthefollow ing:

"CLAUSEPARAM O UN T

(1) ThisBillofLadingshallhaveeffectsubjecttoanynationallaw m akingtheInternationalConventionfortheunificationofcertainrulesoflaw relatingtobillsofladingsignedatBrusselson25thAugust1924(TheHagueRules)ortheHagueRulesasam endedbytheProtocolsignedatBrusselson23rdFebruary1968(TheHague/VisbyRules)com pulsorilyapplicabletothisBillofLading.Ifanyterm ofthisBillofLadingberepugnanttothatlegislationtoanyextent,suchterm shallbevoidtothatextentbutnofurther.NeithertheHagueRulesnortheHague/VisbyRulesshallapplytothisBillofLadingw herethegoodscarriedhereunderconsistofliveanim alsorcargow hichbythisBillofLadingisstatedasbeingcarriedondeckandissocarried.

(2) SavewheretheHagueorHague/VisbyRulesapplybyreasonof(1)above,thisBillofLadingshalltakeeffectsubjecttoanynationallaw inforceattheportofshipm entorplaceofissueoftheBillofLadingm akingtheUnitedNations

ConventionontheCarriageofGoodsbySea1978(theHam burgRules)com pulsorilyapplicabletothisBillofLadinginw hichcasethisBillofLadingshallhaveeffectsubjecttotheHam burgRulesw hichshallnullifyanystipulationderogatingtherefrom tothedetrim entoftheshipperorconsignee.

(3) W heretheHague,Hague/VisbyorHam burgRulesarenotcom pulsorilyapplicabletothisBillofLading,thecarriershallbeentitledtothebenefitsofallprivileges,rightsandim m unitiescontainedinArticlesItoVIIIoftheHague/VisbyRules.

(4) NothinginthisBillofLadingshallbeconstruedasinanywayrestricting,excludingorw aivingtherightofanyrelevantpartyorpersontolim ithisliabilityunderanyavailablelegislationand/orlaw ".

13

Page 1 of 51



15/51

26. SALVAGE

TheMasterisauthorisedtorenderassistancetoothervessels.Allsalvageandrem unerationforsuchassistanceshallbeforOw ners'andCharterers'equalbenefitafterdeductingtheMaster'sandCrew 'sproportionandallcosts,expensesandsacrifices(includingbutnotlim itedtolossoftim e,off-hire,hirepaid,repairstotheVesselandbunkerfuelconsum ed).Anynon-contractualliabilitytothirdpartiesshallbeforO w ners'accountunlessitsolelyaffectsthesalvagerem uneration.

27. ICE

TheVesselshallnotberequiredtoenterorrem aininanyiceboundportorareanor follow ice-breakers,noranyportorareawherelights,lightships,m arkersorbuoyshavebeenorareabouttobewithdraw nbyreasonofice,norw hereonaccountoficethereis,intheM aster'ssolediscretion,ariskthat,intheordinarycourseofevents,theVesselw illnotbeablesafelytoenterandrem ainattheportorareaortodepartaftercom pletionofloadingordischarging.TheVesselshallnotbeobligedtoforceicebut,subject-to-O w nerspriorapproval,m ayfollow ice-breakersw henreasonablyrequired,w ithdueregardtoitssize,constructionandclass.If,onaccountofice,theM asterinhissolediscretionconsidersit-unsafetoproceedto,enterorrem ainattheplaceofloadingordischargingforfearoftheVesselbeingfrozeninand/or-dam aged,heshallbeatlibertytosailtothenearestice-freeplaceandthereaw aitCharterers'instructions.

28. REQUISITION

ShouldtheVesselberequisitionedbyanygovernm ent,de factoorde jure,duringtheperiodofthisCharter,theVesselshallbeoff-hireduringtheperiodofsuchrequisition,andanyhirepaidbysuchgovernm entandcostsincurredinrespectofsuchrequisitionshallbeforOw ners'account.TheoptiongrantedtoCharterersinsub-clause19.3shallnotapplytoperiodsofoff-hirepursuanttothisClause28.

29. OUTBREAK OF WAR

Eitherpartym aycancelthisCharterontheoutbreakofw arorhostilitiesbetw eenanytw oorm oreofthefollow ing

countries:theUnitedStatesofAm erica,theRussianFederation,theUnitedKingdom ,FranceandthePeople'sRepublicofChinathereby affecting vessel's trading.

30. WAR RISKS

30.1 ForthepurposeofthisClause,thew ords:

30.1.1 "Ow ners"shallincludetheshipow ners,bareboatcharterers,disponentow ners,m anagersorotheroperatorsw hoarechargedw iththem anagem entoftheVessel,andtheM aster;and

30.1.2 "W arRisks"shallincludeanyw ar(whetheractualorthreatened),actofw ar,civilw ar,hostilities,revolution,rebellion,civilcom m otion,w arlikeoperations,thelayingofm ines(w hetheractualorreported),actsofpiracy,actsofterrorists,actsofhostilityorm aliciousdam age,blockades(whetherim posedagainstallvesselsorim posedselectivelyagainstvesselsofcertainflagsorow nership,oragainstcertaincargoesorcrew sorotherw isehow soever),byanyperson,body,terroristorpoliticalgroup,ortheGovernm entofanystatew hatsoever,w hich,inthereasonablejudgem entoftheMasterand/orOw ners,m aybedangerousorarelikelytobeortobecom edangeroustotheVessel,itscargo,crew orotherpersonsonboardtheVessel.

30.2 TheVessel,unlessthew rittenconsentofO w nersbefirstobtained,shallnotbeorderedtoorrequiredtocontinuetoorthrough,anyport,place,areaorzone(w hetheroflandorsea),oranywaterw ayorcanal,w hereitappearsthattheVessel,itscargo,crew orotherpersonsonboardtheVessel,inthereasonablejudgem entoftheM asterand/orOw ners,m aybe,orarelikelytobe,exposedtoW arRisks.ShouldtheVesselbewithinanysuchplaceasaforesaid,w hichonlybecom esdangerous,orislikelytobeortobecom edangerous,afteritsentryintoit,theVesselshallbeatlibertytoleaveit.

14

Page 1 of 51



16/51

30.3 TheVesselshallnotberequiredtoloadcontrabandcargo,ortopassthroughanyblockade,w hethersuchblockadebeim posedonallvessels,orisim posedselectivelyinanywayw hatsoeveragainstvesselsofcertainflagsorow nership,oragainstcertaincargoesorcrew sorotherwisehow soever,ortoproceedtoanareaw hereitshallbesubject,orislikelytobesubjecttoabelligerent'srightofsearchand/orconfiscation.

30.4 Ow nersm ayeffectw arrisksinsuranceinrespectoftheHullandM achineryoftheVesselandtheirotherinterests(including,butnotlim itedto,lossofearningsanddetention,thecrew andtheirProtectionandIndem nityRisks),andtheprem ium sand/orcallsthereforshallbefortheiraccount.

IftheUnderwritersofsuchinsuranceshouldrequirepaym entofprem ium sand/orcallsbecause,pursuantto

Charterers'orders,theVesselisw ithin,orisduetoenterandrem ainw ithin,anyareaorareasw hicharespecifiedbysuchUnderw ritersasbeingsubjecttoadditionalprem ium sbecauseofW arRisks,thensuchprem ium sand/orcallsshallbereim bursedbyChartererstoOw nersatthesam etim easthenextpaym entofhireisdue.

30.5 IfOw nersbecom eliableundertheterm sofem ploym enttopaythecrew anybonusoradditionalw agesinrespectofsailingintoanareaw hichisdangerousinthem annerdefinedbythesaidterm s,thensuchbonusoradditionalw agesshallbereim bursedtoOw nersbyCharterersatthesam etim easthenextpaym entofhireisdue.

30.6 TheVesselshallhaveliberty:-

30.6.1 tocom plywithallorders,directions,recom m endationsoradviceastodeparture,arrival,routes,sailinginconvoy,portsofcall,stoppages,destinations,dischargeofcargo,delivery,orinanyotherw aywhatsoever,w hicharegivenbytheGovernm entoftheNationunderw hoseflagtheVesselsails,orotherGovernm enttow hoselaw sO w nersaresubject,oranyotherGovernm ent,bodyorgroupw hatsoeveractingw iththepow ertocom pelcom pliancewiththeirordersordirections;

30.6.2 tocom plyw iththeorders,directionsorrecom m endationsofanyw arrisksunderw ritersw hohavethe

authoritytogivethesam eundertheterm softhew arrisksinsurance;

30.6.3 tocom plywiththeterm sofanyresolutionoftheSecurityCounciloftheUnitedNations,anydirectivesoftheEuropeanCom m unity,theeffectiveordersofanyothersupranationalbodyw hichhastherighttoissueandgivethesam e,andw ithnationallaw saim edatenforcingthesam etowhichOw nersaresubject,andtoobeytheordersanddirectionsofthosewhoarechargedw iththeirenforcem ent;

30.6.4 todivertanddischargeatanyotherportanycargoorpartthereofw hichm ayrendertheVesselliabletoconfiscationasacontrabandcarrier;

30.6.5 todivertandcallatanyotherporttochangethecrew oranypartthereoforotherpersonsonboardtheVesselw henthereisreasontobelievethattheym aybesubjecttointernm ent,im prisonm entorothersanctions.

30.7 IfinaccordancewiththeirrightsundertheforegoingprovisionsofthisClause,Ow nersrefusetoproceedtotheloadingordischargingports,oranyoneorm oreofthem ,theyshallim m ediatelyinform Charterers.

31. GENERAL AVERAGE

GeneralAverageshallbeadjustedandsettledinLondoninaccordancew iththeYork-Antw erpRules,1994oranysubsequentm odificationthereof.

32. NEW JASON

If,notw ithstandingClause31,GeneralAverageisadjustedinaccordancew iththelaw andpracticeoftheUSA,thefollow ingprovisionshallapply:-

"Intheeventofaccident,danger,dam ageordisasterbeforeorafterthecom m encem entofthevoyage,resultingfrom anycausew hatsoever,w hetherduetonegligenceornot,forw hich,orfortheconsequenceofw hich,thecarrierisnotresponsible,bystatute,contractorotherw ise,thecargo,shippers,consignees

15

Page 1 of 51



17/51

orow nersofthecargoshallcontributew iththecarrieringeneralaveragetothepaym entofanysacrifices,lossesorexpensesofageneralaveragenaturethatm aybem adeorincurredandshallpaysalvageandspecialchargesincurredinrespectofthecargo.

Ifasalvingshipisow nedoroperatedbythecarrier,salvageshallbepaidforasfullyasifthesaidsalvingshiporshipsbelongedtostrangers.Suchdepositasthecarrierorhisagentsm aydeem sufficienttocovertheestim atedcontributionofthecargoandanysalvageandspecialchargesthereonshall,ifrequired,bem adebythecargo,shippers,consigneesorow nersofthecargotothecarrierbeforedelivery".

33. BOTH-TO-BLAME COLLISION

Iftheliabilityforanycollisioninw hichtheVesselisinvolvedw hileperform ingthisCharterfallstobedeterm inedinaccordancew iththelaw softheUSA,orthelaw sofanyStatew hichapplieslaw ssim ilartothoseappliedintheUSAinthecircum stancesenvisagedbythisClause33,thefollow ingprovisionshallapply:-

"IftheVesselcom esintocollisionw ithanothervesselasaresultofthenegligenceoftheothervesselandanyact,neglectordefaultoftheM aster,m ariner,pilotortheservantsofthecarrierinthenavigationorinthem anagem entoftheVessel,theow nersofthegoodscarriedhereunderw illindem nifythecarrieragainstalllossorliabilitytotheotherornon-carryingvesseloritsow nersinsofarassuchlossorliabilityrepresentslossof,ordam ageto,oranyclaim w hatsoeveroftheow nersofsaidgoods,paidorpayablebytheotherornon-carryingvesseloritsow nerstotheow nersofsaidgoodsandsetoff,recoupedorrecoveredbytheotherornon-carryingvesseloritsow nersaspartoftheirclaim againstthecarryingvesselorcarrier.

Theforegoingprovisionsshallalsoapplywheretheow ner,operatorsorthoseinchargeofanyvesselorvesselsorobjectsotherthan,orinadditionto,thecollidingvesselsorobjectsareatfaultinrespectofcollisionorcontact."

W hilstCharterersshallprocurethatallbillsofladingandw aybillsissuedunderthisChartershallcontainaprovisionintheforegoingterm s,tobeapplicablew heretheliabilityforanycollisioninw hichtheVesselisinvolvedfallstobedeterm inedunderthepream bleofthisClause33,Charterersneitherw arrantnorundertakethatsuchprovisionshallbeeffective.In

theeventthatsuchprovisionprovesineffectiveCharterersshall,notw ithstandinganythingtothecontraryhereinprovided,notbeobligedtoindem nifyO w ners.

34. OIL POLLUTION PREVENTION

34.1 Ow nersundertakethattheVesselisatankerow nedbyam em beroftheInternationalTankerOw ners'PollutionFederationLim itedandw illsorem ainthroughouttheperiodofthisCharter.

34.2 W henanescapeordischargeofO iloccursfrom theVesselandcausesorthreatenstocausePollutionDam age,orw henthereisthethreatofanescapeordischargeofOil(i.e.agraveandim m inentdangeroftheescapeordischargeofOilw hich,ifitoccurred,w ouldcreateaseriousdangerofPollutionDam age,w hetherornotanescapeordischargeinfactsubsequentlyoccurs),thenuponnoticetoOw nersorM aster,Charterersshallhavetheright(butshallnotbeobliged)toplaceonboardtheVesseland/orhaveinattendanceattheincidentoneorm oreCharterers'representativestoobservethem easuresbeingtakenbyOw nersand/ornationalorlocalauthoritiesortheirrespectiveservants,agentsorcontractorstopreventorm inim isePollutionDam ageandtoprovideadvice,equipm entorm anpow erorundertakesuchotherm easures,atCharterers'riskandexpense,asareperm ittedunderapplicablelaw andasCharterersbelievearereasonablynecessarytopreventorm inim isesuchPollutionDam ageortorem ovethethreatofanescapeordischargeofO il.

34.3 TheprovisionsofthisClause34shallbewithoutprejudicetoanyotherrightsand/ordutiesofCharterersorO w nersw hetherarisingunderthisCharterorunderapplicablelaw orunderanyInternationalConvention.

34.4 InthisClausetheterm s"Oil"and"PollutionDam age"shallhavethesam em eaningasthatdefinedintheCivilLiabilityConvention1969oranyProtocolthereto.

16

Page 17of 51



18/51

35. EXCEPTIONS

35.1 TheprovisionsofArticleIII(otherthanRule8thereof,IV,IVbis,VIIandVIIIoftheScheduletotheCarriageofGoodsbySeaAct1971oftheUnitedKingdom shallapplytothisCharterandshallbedeem edtobeinsertedinextensoherein.ThisChartershallbedeem edtobeacontractforthecarriageofgoodsbyseatowhichthesaidArticlesapply,andnoregardshallbehadtoArticleIofthesaidSchedule.How ever,nothinginthisClauseshallbedeem edtom odify,lim itorexcludetheparties'rightsandobligationsassetoutinClauses1,9,10,11,18and19hereof.

35.2 W hereaclaim forindem nityisbroughtunderthisCharter,thedefendingpartyshallbeentitledtorelyonalldefencesandlim itations,w hetherfoundedoncontract,tort,legislationorconvention,thattheclaim antcouldhavereliedonintheprincipalactionorinrelationtotheprincipalclaim .

35.3 Notw ithstandingtheaforesaid:

35.3.1 W hereaclaim forindem nityrelatingtoaclaim pursuedbyathirdpartyisbroughtunderthisCharter,suchclaim shallbeextinguishedunlesssuitiscom m encedw ithintw elve(12)m onthsoftheprincipalclaim beingsettledbythepartiestheretoordeterm inedbythefinal,unappealablejudgm entofacom petentcourt.

35.3.2 Allotherclaim sshallbesubjecttothestatutorylim itationperiod.

36. LAW

Theconstruction,validityandperform anceofthisChartershallbegovernedbyEnglishLaw .TheHighCourtinLondonshallhaveexclusivejurisdictionoveranydisputewhichm ayariseoutofthisCharter.

Notw ithstandingtheaforesaid,thepartiesm ayjointlyelecttohaveanysuchdisputereferredtoarbitrationinLondon

pursuanttotheArbitrationAct1996oranym odificationorre-enactm entthereofforthetim ebeinginforceandundertheTerm softheLondonM aritim eArbitrators'Associationbeforeatribunalconsistingofthreearbitrators.

17

Page 18of 51



19/51

I n Witness WhereofthepartieshavecausedthisChartertobeexecutedasofthedatefirstabovew ritten

forandonbehalfof

OW NERS

forandonbehalfof

BPSH IPPING

CHARTERERS

ThisCharterPartyisacom putergeneratedcopyoftheBEEPEETIM E3CharterPartyform printedbyauthorityofBPShippingLtd.usingsoftwarew hichisthecopyrightofStrategicSoftwareLtd.Anyinsertionordeletiontotheform m ustbeclearlyvisible.Intheeventofanym odificationm adetothepreprintedtextofthisdocum entw hichisnotclearlyvisible,thetextoftheoriginalBPapproveddocum entshallapply.BPShippingLtd.andStrategicSoftw areLtd.assum enoresponsibilityforanylossordam agecausedasaresultofdiscrepanciesbetweentheoriginalapproveddocum entandthisdocum ent.

18

Page 1 of 51



20/51

ADDITIONAL CLAUSES TO M.T. "SENATORE" TIME CHARTER PARTY DATED

1.Ow nersw arrantthatthevessel'sairdraftinballastconditionw illnotexceed132feet.

2.Speed/Consum ption:

Allconsum ptionexpressedintonnesofIFO 380perday,unlessotherwisespecified.Consum ptionuptoBeaufort5included.

Ballast Laden

14.5knotson37m t14.0knotson37.0m t

Otherconsum ptions:

Speed Ballast Laden

13knots24.5m t 28.5m t

13.5knots27.5m t 32.5m t

14knots

31.5m t 37.0m t

14.5knots37.0m t 41.0m t

15knots41.5m t 46.5m t

M aintainCargoTem peratureupto135F:10m tIfo

IncreaseTem peraturefrom 44To66C

(Air0Deg-Sea5Deg)in96Hours120m tIfo/Total

InertingalltanksbyIGS20m tM GO DM Aper36Hrsor13.3m tM GO DM Aperday

Dieselgeneratoridle3.0m tIfo

Boilersidle4.0m tIfo

Dischargingin24hours32.0m tIfo+12.0M tofm go

Loading10.0m tIfo

Ballasting/Deballasting8.0m tIfoX12Hrs

Butterw orthalltanksabout36hours17.0m tIfo.

1

Page 20of 51



21/51

BP TIME 3 Additional Clauses

Index of ClausesMandatory Clauses

1.BPVettingandAuditingClause2.BPO peratingM anualClause3.BPHSSEReportingClause4.BPO CIM FTM SAClause5.BPOilM ajorApprovalsClause6.BPDry-dockingClause7.BPOff-hireDurationClause8.BPPum pingClause9.BPCrudeOilW ashingandStrippingClause10.BPCargoRetentionClause11.BPTerm inalQ uestionnairesClause12.BPISPSClauseforTim eCharterParties13.BPRoutingCodeofPracticeClause14.BPVesselTrackingSystem Clause15.BPUSCGInspectionandTVELClause16.BPTankPresentationClause17.BPHeatingClause18.BPClosedLoadingandSam plingClause19.BPCargoControlRoom M anningClause20.BPInertGasSystem Clause21.BPCleanBallastClause22.BPBunkerFuelSulphurContentClause

23.BPIndem nityClause24.BPEthicalPolicyClause25.BPFacilitationPaym entsClause26.BPTradeControls,Em bargoesandBoycottsClause27.BPISM Clause28.BPRegulatoryandGuidelineCom plianceClause29.BPH2SandM ercaptansClause30.BPOilPollutionInsuranceCertificationandCO FR'SClause31.BPITW FClause32.BPUniqueIdentifierClauseandUSBureauofCustom sandBorderProtectionClause33.BPCasualtyandEm ergencyResponseNotificationClause34.BPO ilSpillResponseandEm ergencyContactsClause35.BPCom m inglingClause36.BPConfidentialityClause37.BPNoticesClause38.BPRem easurem entClause39.BPBallastW aterM anagem entClause

40.BPNew BuildingClause

2

Page 21of 51



22/51

Charter Specific Clauses

41.BPIceStrengthenedVesselClause42.BPCastellonClause43.BPGenoaClause44.BPGrangem outhClause45.BPHam bleClause46.BPIsleofGrainClause47.BPJebelDhannaClause48.BPLibyaClause

49.BPRasTanuraClause50.BPRotterdam Clause51.BPSidiKerirClause52.BPSullom VoeClause53.BPTriesteClause54.BPTurkishStraitsClause55.BPMagellanStraitsRoutingClause56.BPBalticRoutingClause

Mandatory Clauses

1. BP Vetting and Auditing Clause

(a)ItisaconditionprecedentofthisCharterthat,priortodelivery,O w nersandtheVesselsuccessfullycom pletetheCharterers'VettingandApprovalProcess.TheVettingandApprovalProcessshallinclude,butshallnotbelim itedto,com pletion(totheCharterers'satisfaction)ofthefollow ing:

(i)aninspectionoftheVessel;and

(ii)anauditandassessm entofthem anagem entproceduresofOw nersandtheirM anagers;and

(iii)astructuralreview oftheVessel.

(b)Priortoandim m ediatelyafterdelivery,andthenatanytim eduringtheCharterPeriod,CharterersshallhavetherighttoinspecttheVesselandtoauditOw ners'andM anagers'm anagem entprocedurestoensurethattheVessel,itscertificationandoperatingstandardsarem aintainedtoCharterers'continuingsatisfactionandthatOw nersarecom plyingfullywiththeprovisionsofthisCharter.

(c)Notw ithstandingtheprovisionsofparagraphs(a)and(b)above,notlessthanonceeverysixm onths,O w nersshallrequestaninspectionoftheVesseltobeconductedbytheChartererstoensurethattheVessel,itscertificationandoperatingstandardsarem aintainedtoCharterers'continuingsatisfaction.Thecostofsuchbi-annualinspectionsshallbeforO w ners'account.

3

Page 22of 51



23/51

(d)Follow inganyinspectionorauditcarriedoutpursuanttothisClause,CharterersshallissuetoO w nersaninspectionreportinw ritingindicatinganydefectand/ordeficiencyand/ornon-com pliance.Ow nersshallrectifyanydefectand/ordeficiencyandornon-com plianceidentifiedinsuchinspectionreportassoonasisreasonablypractical,butinanyeventnolaterthan30daysafterreceiptofCharterers'inspectionreport.Allcostsofrectifyingsuchdefectsand/ordeficienciesand/ornon-com pliancesshallbeforOw ners'account,andtheVesselshallbeoff-hirefortheperiodofanytim etherebylost.

(e)IftheOw nersdonotrectifyanydefectsand/ordeficienciesand/ornon-com pliancesidentifiedinanyinspectionreportissuedbyChartererspursuantto(d)abovew ithin30daysaftersuchinspectionreporthasbeenissuedtoO w ners,Charterersshallhavetheoptionto:

(i)puttheVesseloffhireforthw ith,untilsuchtim easanysuchdefectand/ordeficiencyand/ornon-com pliancehasbeenrectified;and/or

(ii)cancelthisCharter,

providedthatthisoptionshallbedeclaredbyCharterersw ithin10w orkingdaysoftheexpiryofthe45dayperiod.

(f)CharterersshallbeentitledtoprovidecopiesofanyinspectionreportissuedpursuanttothisClausetothirdpartiesand/orenterthefindingscontainedinsuchinspectionreportsintodatabasesaccessibletothirdparties(includingbutnotlim itedtotheSIREdatabase).

(g)Neithertheexercise,thenon-exercise,noranythingdoneornotdone,intheexerciseornon-exerciseofCharterers'rightspursuanttothisClause,shallreducetheresponsibilityofO w nersand/ortheManagersand/ortheMastertoCharterersand/orthirdpartiesinrespectoftheVessel,herm aintenanceand/orheroperation,norincreaseCharterers'responsibilitiestoOw nersorthirdpartiesforsam e.

2. BP Operating Manual

Ow nersacknow ledgethattheyhavebeenprovidedw ithacopyoftheBPO peratingM anual(ThirdPartyM anagers)andundertakethattheyandtheManagersoftheVesselshallatalltim escom plyw iththerequirem entsandrecom m endationstherein.

3. BP HSSE Reporting Clause

(a)Charterersplaceprim eim portanceonHSSEissuesandrequirethatitscontractorsandtheirsub-contractorssubscribetoandactivelypursuethehigheststandardsofHSSEperform ance.

(b)PriortodeliveryoftheVesseltoCharterersatthecom m encem entoftheCharterPeriod,Ow nersandtheirtechnicalm anagers(hereafterreferredtoas"M anagers")shallundertakeanHSSEaudit,inconjunctionw ithCharterersand,oncom pletionofsuchaudit,developanHSSEActionPlanbasedupontheauditfindingsinordertoprom otecontinualim provem entinHSSEperform ance.

4

Page 2 of 51



24/51

(c)O w nersshallsubm itHSSEreportstoCharterersinaccordancew iththeprovisionsoftheBPOperatingM anual(ThirdPartyM anagers)forthedurationofthisCharter,includinganyperiodsduringw hichtheVesselisoff-hirefordry-docking,repairoranyotherreasons.Inadditiontoreportsfrom individualvesselsdirectlyonBPbusiness,M anagersw illforwardonaQuarterlybasis,safetydatafortheirentirefleetoftankervessels.

(d)AnyfailurebyOw nerstocom plywiththerequirem entssetoutin(b)and(c)abovewillentitleChartererstoputtheVesseloff-hire,untiltherequirem entsof(b)and(c)havebeenm et.

4. BP OCIMF TMSA Clause

Ow nersw arrantthattheyhavecom pletedaTankerM anagem entSelfAssessm ent("TM SA")reportandhavesubm ittedthesam etoOCIM F.Ow nersshallreview andupdatetheTM SAannually.

5. BP Oil Major Approvals Clause

(a)TothebestofO w nersknow ledgetheVesselisacceptableforcharterand/orterm inalbytheoilcom panieslistedinAppendixA(Part1w hichshallread"BP,ExxonM obil,Shell,ChevronandTotal")attachedheretoandshallm aintainthevalidityofsuchapprovalsthroughouttheCharterPeriod.Ow nersshallhavetheVesselinspectedandacceptedbythefurtheroilcom panieslistedinAppendixA(Part2w hichshallread"Statoil,ConocoandValero")andthereaftershallm aintainthevalidityofsuchacceptancesthroughouttheCharterPeriod.

(b)O w nersshalladviseCharterersim m ediatelyifanyacceptanceisnotgrantedandofanychangeinstatusofanyacceptancesandadvisewhenfurtherinspectionsnecessarytoobtainorm aintainsuchacceptancebecom edue.O w nersshallnotifyCharterersoftheoutcom eofallsuchinspectionsassoonascom pletedand,intheeventofanacceptancenotbeinggrantedorbeingw ithdraw n,shallim m ediatelytakestepstorectifyalldeficienciesidentifiedinthecourseofsuchinspection.

(c)Intheeventthatanyapprovalisnotgrantedorre-instated,orsuchdeficienciesarenotrectifiedw ithin30daysoftheinspectionreportbeingreceivedbyOw ners,w ithoutprejudicetoanyotherrem ediesavailabletothem underthisCharter,Charterersshallhavetherightw ithin10daysthereafterto:

(i)puttheVesseloff-hireforthw ith,untilsuchtim eassuchapprovalhasbeengrantedorre-instatedand/orsuchdeficiencieshavebeenrectified;and/or

(ii)cancelthisCharter;and/or

Alw aysprovidedVessel'stradingperm ittingandsubjecttoinspectors'availabilitytocarryoutsuchinspections.

6. BP Dry-docking Clause

(a)Ow nersw arrantthat,otherthanasexpresslyadvisedtoCharterersinw ritingpriortoenteringintothisCharter,theVesselisscheduledtodry-dockduringtheCharterPeriodasfollow s:

DuringJune2009.

5

Page 2 of 51



25/51

(b)Ifthem inim um CharterPeriodis6m onthsorm ore,andsubjecttoparagraph(a)above,Ow nersshallhavetherightandobligationtodry-docktheVesselforroutinem aintenanceandsurveysfrom tim etotim einaccordancew iththeVessel'sclassificationsocietyrulesorincaseofem ergency.Oneachoccasionthattheyw ishtodry-docktheVessel,O w nersshallgiveCharterersam inim um ofsixm onths'approxim ateand90days'definitenotice(exceptincaseofem ergency)ofthedateandplaceatw hichtheyintendtodocktheVessel.Ow nersandCharterersshallco-operatetoensurethatdry-dockingoftheVesselisagreedtotakeplaceatatim eandplacewhichcausesm inim um disruptiontotheVessel'strading.Tankcleaningexpensesforthepurposesofdry-dockingshallbeforOw nersaccountanddisposalofslopsgeneratedbyCharterers'tradingoftheVesselshallalsobeforO w ners'account.

(d)TheVesselshallbeoffhirefrom droppingoutboundseapilotatthelastdischargeportpriortodry-dockingandshallrem ainoff-hireuntilsheisinapositionnolessfavourabletoCharterersthanthatatthecom m encem entoftheoffhire.O w nersshallgiveCharterersseven,three,tw oandoneday(s)noticepriortoredeliveryfrom dry-docking,reconfirm ingoradvisingofanyadjustm enttothedateandtim epreviouslygiven.Anyservicegivenordistancem adegood,includingbunkersconsum ed,bythevesselw hilethevesselisoff-hireshallbetakenintoaccount(i.e.creditedtoow ners)inassessingtheam ounttobedeductedfrom hire(tobeconsistentw iththew ordinginclause19.3ofthecharterparty).

(e)Uponcom pletionofthedry-dockOw nersshall,attheirexpense,redelivertheVesseltoCharterersw ithhertanksfullycleaned,inertedandreadytoload,how everCharterersshall,insofarascleaningfordrydockingm ayhavereducedtheam ountoftankcleaningnecessarytom eetCharterers'requirem ents,creditOw nersw iththevalueofanybunkersw hichChartererscalculatetohavebeensavedthereby.

7. BP Off-hire Duration Clause

(a)Ifanyperiodofoff-hire(otherthanaperiodoff-hirerelatingtoascheduleddry-dockingoftheVesselagreedw ithCharterers)exceedsorisexpectedtoexceed45days,then,w ithoutprejudicetoanyotherrightsCharterersm ayhaveunderthisCharter,Charterersshallhavetheoptionofterm inatingthisCharterbygivingnoticeinw ritingtoOw ners.Term inationshalltakeeffect

from thedateonw hichsuchnoticeisreceivedbyOw nersorfrom anylaterdatestatedinsuchnotice.

(b)Uponterm inationinaccordancew iththisClause,Ow nersshallforthw ithrem ittoCharterersanyhirepaidinadvanceandnotearnedasatthedateofterm inationandanyotherm oniesow ing,includingbutnotlim itedtothecostofbunkersonboardatthecom m encem entoftheoff-hireperiod.

8. BP Pumping Clause

(a)ForthepurposesofthisClause:-

fullcargo'shallm eanthefullcargocapacityoftheVesselasdescribed.

partcargo'shallm eaneitherthetotalcargoactuallyloaded,iflessthanfullcargocapacityoftheVesselasdescribed,orthequantityofeachparcelloadedordischargedseparately,asthecontextm ayrequire.

6

Page 2 of 51



26/51

bulkdischarge'shallm eantheperiodoftim etakenbytheVesseltodischargethefullcargoorpartcargo,asthecasem aybe,excludinganytim eduringw hichonlytankstrippingand/orcrudeoilw ashingoperationsarebeingperform ed

(b)O w nersundertake,alw aysprovidedthatthevesselisdischargingatnotm orethanoneberth/term inal,that:

(i)theVesselshallloadthecargoatthem axim um saferateandinanyeventshallloadafullcargow ithinam axim um periodoftw entyfour(24)hours,orpro-ratainthecaseofapartcargo,providedalw aysthatthecargoiscapableofbeingsuppliedw ithinsuchtim e;and

theVesselshalldischargeatthem axim um saferateandinanyeventshall,inthecaseofcargoesofoneorm oresegregatedgrades/parcelsdischargedconcurrentlyorconsecutively,dischargeafullcargow ithintw enty-four(24)hours,orproratainthecaseofapartcargo,orshallm aintainam inim um dischargepressureofseven(7)barattheVessel'sm anifoldthroughoutthebulkdischarge,providedalw aysthatthecargoiscapableofbeingreceivedw ithinsuchtim eoratsuchpressure.Ifrestrictionsareim posedbyanyterm inalduringdischarge,orifphysicalattributesofsuchterm inalrestrictthedischargerateorpressure,O w nersshallonlyberelievedoftheaforesaidobligationfortheperiodandtotheextentsuchrestrictionsorattributesim pedethedischargerateorpressure.Thedischargeterm inalshallhavetherighttogaugedischargepressureattheVessel'sm anifold.

(c)Anyadditionaltim eusedasaresultoftheinabilityoftheVesseltoloadordischargethefullcargow ithintwenty-four(24)hours,orproratainthecaseofpartcargo,ortom aintainam inim um dischargepressureofseven(7)barattheVessel'sm anifoldthroughoutthedischarge,orfailurebytheVesseltom eetanylesserperform ancerequiredpursuanttoarestrictionim posedbytheterm inal,shallbeforO w ners'account,andCharterersshallbeabletodeducttheadditionaltim eusedatthehireratefrom hire.

(d)Inthecaseofm ultiplegradesofcargoeswherethetotaltim etakentodischargethefullcargoisinexcessoftwenty-four(24)hours(orpro-ratainthecaseofapartcargo)andtheVesselfailstom aintainam inim um dischargepressureofseven(7)barthroughoutthedischarge,eachgradecarriedw illbeassessedseparatelyasfollow s:-

(i)Thetw enty-four(24)hours'allow ance(proratedinthecaseofapartcargo)plustheappropriatecrudeoilw ashingallow ance,ifany,calculatedinaccordancew iththeCrudeOilW ashingandStrippingClause,shallbeapportionedtoeachgrade,w hichisdischargedconsecutively,intheratiothatthequantityofthatgradedischargedbearstothetotalquantityofallgradesofcargodischargedconsecutively.Thisratioshallbecalculatedbydividingthequantityofeachgradethatisdischargedconsecutivelybytheaggregatedbillofladingquantitiesforallgradesdischargedconsecutively.Forthepurposesofthisapportionm ent,w heretw o(2)orm oregradesaredischargeconcurrently,thequantitiessodischargedshallbeaggregatedandtreatedasonegrade.

7

Page 2 of 51



27/51

(ii)Theallow anceapportionedtoeachgradepursuanttoparagraph(ii)shallthenbeoffsetagainstthetotaltim eactuallytakentodischargethatgrade.Anyexcesstim ew illbeforOw ners'account.How ever,iftheVesselm aintainsam inim um dischargepressureofseven(7)barthroughoutthebulkdischargeofaparticulargrade thenthetim etakentodischargethegradewillbeforCharterers'account.

(e)IfthefullcargocannotbedeliveredtotheVesselattheraterequestedbytheMasterorw ithinthetim eallow edinparagraph(b)aboveorifanyterm inalisunabletoreceivethefullcargow ithintwenty-four(24)hoursoratadischargepressureofseven(7)barm easuredattheVessel'sm anifold,theMastershallpresentaNoteofProtest(NO P')toaterm inalrepresentativedetailinganyterm inalrestrictionsand/ordeficienciesassoonastheyareim posedand/orbecom eapparentandshalluseallreasonableendeavourstohavetheNOPsignedbytheterm inalrepresentative.IftheMasterisunabletoobtainasignaturefrom theterm inalrepresentativeheshallpresentafurtherNO Precordingthefailureoftheterm inalrepresentativetosigntheoriginalNO P.Inthecaseofrestrictionsim posedbytheterm inalorarisingfrom physicalattributesofanyterm inal,theM astershallensurethatsuchrestrictionsareclearlyrecordedintheVessel'sPum pingLog.

(f)ShouldtheVesselfailtom eettheagreedpum pingperform ancein50percentofhercargooperationsoveratw om onthsperiod,thenCharterersshallhavetherighttocancelthisCharter.

9. BP Crude Oil Washing and Stripping Clause

(a)Ow nersw arrantthattheVesselisequippedw ithafullyfunctionalCrudeOilW ashingsystem andthattheofficersandcrew areproperlyqualified(asevidencedbyappropriatecertification)andexperiencedintheoperationofsuchsystem .W hilstCharterersm ayinstructO w nerstocarryoutadditionalcrudeoilw ashinginalltanksthatcontainedthecargotheMastershall,inanyevent,arrangeforcrudeoilw ashingofthecargotanksatthedischargeporttotheMARPOLm inim um standard,assetoutintheVessel'sCrudeOilW ashingOperationandEquipm entM anual.

(b)O w nersshallcarryoutcrudeoilw ashingconcurrentlywiththedischargeofthecargoandtheMastershallprovideacrudeoil

w ashinglogidentifyingeachtankw ashed,andstatingw hethersuchtankhasbeenw ashedtotheM ARPO Lm inim um standardorhasbeenthesubjectofadditionalcrudeoilw ashing.

(c)O w nersshall,providedalw aysthattheVesselm aintainsam inim um dischargepressureofseven(7)barduringbulkdischargeorm eetssuchlesserperform ancerequiredpursuanttoarestrictionim posedbyanyTerm inalorarisingfrom physicalattributesoftheterm inal,beallow edaperiodofnotm orethantw o(2)hourspersegregatedgrade/parcelforfinaldrainingandstrippingpurposesunlesssuchfinaldrainingandstrippingiscarriedoutconcurrentlywiththedischargeofanothergradeparcel.Anytim etakenforfinaldrainingandstrippingpurposesinexcessofsuchallow anceshallbeforO w ners'account.

8

Page 27of 51



28/51

10. BP Cargo Retention Clause

If,duringanyvoyageunderthisCharter,anyquantityofcargorem ainingonboardtheVessel(ROB)uponcom pletionofdischargeisjudgedbyanindependentsurveyorappointedbyChartererstobeliquidandpum pable,orifChartererscanshow thattheROBw ouldhavebeenliquidandpum pableifO w nersand/orM aster,officersandcrew hadfollow edCharterers'instructionsforthem anagem entofthecargo,thenCharterersshallbeentitledtothevalueofsuchROBplusvoyagefreightduerelatingtosuchquantityofcargorem ainingonboard.

11. BP Terminal Questionnaires Clause

Ow nersaretoprovidecom pletedquestionnairesinatim elym anner,intheform atrequiredbyCharterers,foranyloadingordischargingterm inalsasandw henrequiredbyCharterersthroughouttheCharterPeriod.

12. BP ISPS Clause for Time Charter Parties (replaced with BIMCO clause)

(a)(i)TheOw nersshallcom plywiththerequirem entsoftheInternationalCodefortheSecurityofShipsandofPortFacilitiesandtherelevantam endm entstoChapterXIofSOLAS(ISPSCode)relatingtotheVesseland"theCom pany"(asdefinedbytheISPSCode).Iftradingtoorfrom theUnitedStatesorpassingthroughUnitedStateswaters,theOw nersshallalsocom plywiththerequirem entsoftheUSM aritim eTransportationSecurityAct2002(MTSA)relatingtotheVesselandthe"Ow ner"(asdefinedbytheM TSA).

(ii)UponrequesttheOw nersshallprovidetheCharterersw ithacopyoftherelevantInternationalShipSecurityCertificate(ortheInterim InternationalShipSecurityCertificate)andthefullstylecontactdetailsoftheCom panySecurityOfficer(CSO ).

(iii)Loss,dam ages,expenseordelay(excludingconsequentialloss,dam ages,expenseordelay)causedbyfailureonthepartoftheOw nersor"theCom pany"/"Ow ner"tocom plywiththerequirem entsoftheISPSCode/M TSAorthisClauseshallbefortheOw ners'account,exceptasotherw iseprovidedinthisCharterParty.

(b)(i)TheCharterersshallprovidetheOw nersandtheM asterw iththeirfullstylecontactdetailsand,uponrequest,anyotherinform ationtheO w nersrequiretocom plyw iththeISPSCode/M TSA.W heresub-lettingisperm ittedundertheterm softhisCharterParty,theCharterersshallensurethatthecontactdetailsofallsub-charterersarelikew iseprovidedtotheOw nersandtheM aster.Furtherm ore,theCharterersshallensurethatallsub-charterpartiestheyenterintoduringtheperiodofthisCharterPartycontainthefollow ingprovision:

"TheCharterersshallprovidetheOw nersw iththeirfullstylecontactdetailsand,w heresub-lettingisperm ittedundertheterm softhecharterparty,shallensurethatthecontactdetailsofallsub-charterersarelikew iseprovidedtotheOw ners".

(ii)Loss,dam ages,expenseordelay(excludingconsequentialloss,dam ages,expenseordelay)causedbyfailureonthepartoftheChartererstocom plywiththisClauseshallbefortheCharterers'account,exceptasotherw iseprovidedinthisCharterParty.

9

Page 28of 51



29/51

(c)Notw ithstandinganythingelsecontainedinthisCharterPartyalldelay,costsorexpensesw hatsoeverarisingoutoforrelatedtosecurityregulationsorm easuresrequiredbytheportfacilityoranyrelevantauthorityinaccordancew iththeISPSCode/M TSAincluding,butnotlim itedto,securityguards,launchservices,vesselescorts,securityfeesortaxesandinspections,shallbefortheCharterers'account,unlesssuchcostsorexpensesresultsolelyfrom thenegligenceoftheOw ners,M asterorcrew .Allm easuresrequiredbytheOw nerstocom plyw iththeShipSecurityPlanshallbefortheO w ners'account.

(d)Ifeitherpartym akesanypaym entw hichisfortheotherparty'saccountaccordingtothisClause,theotherpartyshallindem nifythepayingparty.

13. BP Routing Code of Practice Clause

Ow nersshallinstructtheMastertoobserveregulationsandrecom m endationsastotrafficseparationandroutingasissued,from tim etotim e,byresponsibleorganisationsorregulatingauthoritiesincluding,butnotlim itedto,theIM O,theUKCham berofShipping(orequivalent),orasprom ulgatedbythestateoftheflagoftheVesselorthestatefrom w hichm anagem entoftheVesselisexercised.

14. BP Vessel Tracking System Clause

(a)Charterersm ay,from thedateofenteringintothisCharterandthroughoutthedurationoftheCharterPeriod,em ployanInm arsatCtrackingsystem ontheVessel.Allregistrationandcom m unicationcostsrelatingtothistrackingsystem shallbeforCharterers'account.CharterersshalladviseOw nersw henthesystem isoperativeandshallconfirm term inationuponredelivery.

(b)O w nersshallsupplythefollow inginform ationtoCharterers:

Inm arsatCnum ber(9digitsbeginningwith4);M anufacturer,m ake,etc;

M odelNum berandSerialNum ber;andTerm inalS/W versionifknow n:

15. BP USCG Inspection and TVEL Clause

IftheTradingLim itsunderthisCharterincludetheUnitedStatesofAm erica,oranyUSAcontrolledterritories,thenanytim elostatanyportintheUSA,orUSAcontrolledterritories,w aitingforaUSCGinspectionand/ortheissueofaTankVesselExam inationLetter("TVEL")shallbeforO w nersaccountandtheVesselshallbeoff-hireforanytim elostprovidedthatthevesselcallstheUSAduringtheprevious12m onths.

16. BP Tank Presentation Clause

Vesseltobedeliveredw itheitherdirtyorcleanbackgroundatOw ners'optionandw ithalltanksfullyinerted.

17. BP Heating Clause

(a)Ow nersw arrantthattheVesseliscapableofreceivingcargoatam axim um tem peratureof75degreesCentigrade.

10

Page 2 of 51



30/51

(b)CharterersshallhavetherighttoinstructO w nerstom aintaintheloadedtem peratureofthecargouptoam axim um tem peratureof135degreesF.IftheVesselfailstom aintaintherequiredtem perature,Ow nersshallberesponsibleforanyresultingloss,dam age,costsorexpenseincurredbyCharterers(including,w ithoutlim itation,anycostsorexpensesarisingasaresultoftheVesselbeingrequiredtovacatetheberth).

(c)CharterersshallhavetherighttoinstructOw nerstoraisethetem peratureofthecargoabovetheloadedtem peratureuptoam axim um tem peratureof135degreesF,providedthatthevoyageisofsufficientdurationtoperm itthesam e.

18. BP Closed Loading and Sampling Clause

Ow nersw arrantthattheVesselcom pliesw ith,andshallbeoperatedforthedurationofthisCharterinaccordancew iththerecom m endationsregardingclosedloadingandcloseddischargesetoutinthe1996editionofISG OTTasam endedfrom tim etotim e.IftheVesselhasclosedsam plingequipm ent,suchequipm entshallbeused,w henappropriate,duringthisCharter.

19. BP Cargo Control Room Manning Clause

W hilsttheVesseliscarryingoutcargooperationsatanyloadingordischargingportorplace,theVessel'scargocontrolroom shallatalltim esbem annedbyaleastoneofficerhavingagoodworkingknow ledgeoftheEnglishlanguage.

20. BP Inert Gas System Clause

(a)Ow nersw arrantthat,insofarasrequiredundertheprovisionsofSOLAS,theVesselisequippedw ithafullyfunctionalInertGasSystem ("IGS")w hichisinfullw orkingorderandcom pliesfullywithRegulation62,chapterII-2oftheSOLASConvention1974(asm odifiedbyitsProtocolof1978andanysubsequentam endm ents)andthattheyshallsom aintaintheIGSforthedurationofthisCharter.

(b)O w nersfurtherw arrantthattheMaster,officersandcrew areproperlyqualified(asevidencedbyappropriatecertification)andexperiencedintheoperationofIGSandthattheIGSshallbeoperatedinaccordancew iththeoperationalproceduresassetoutintheIM OpublicationentitledInertGasSystem '(IM O860E)asam endedfrom tim etotim e.

(c)W hereequippedw ithanIGS,theVesselshallarriveatallloadingportswithhertanksfullyinerted.IntheeventofanydelaytotheVesselduetodeficientorim properoperationoftheIGS,theVesselshallbeoff-hirefortheperiodofanytim elost.

(d)IfChartererssorequire,O w nersshallarrangefortheVessel'stankstobedepressurisedtofacilitategaugingandsam plingortobede-inertedorgasfreedtofacilitateinspection.Anytim etakentode-pressurise,gauge,sam pleandre-pressurise,ortode-inertorgasfree,inspectandre-inertthereaftershallbeforCharterers'account.

11

Page 30of 51



31/51

21. BP Clean Ballast Clause

(a)TheVesselshallbedeliveredtotheChartererw ithcleanballastasdefinedinRegulation1(16)oftheRegulationsforthePreventionofPollutionbyOilinAnnex1ofM ARPOL,unlessotherwiseagreed.

(b)Duringalltankcleaning,O w nersshallensurethatalloilyresiduesofapersistentnatureareretainedonboard.Slopsshallbeseparatedintoasinglecargotankandafterm axim um separationoffreew ater,dischargethew aterseparatedoverboard.Indischargingallw aterseparatedasaforesaid,theMastershallcom plywiththerequirem entsoftheInternationalConventionforthePreventionofPollutionfrom Ships1973,asam endedbyitProtocolof1978(MARPO L /78),insofarasthesedonotconflictw ithanyapplicablelaw stow hichtheVesselissubject.

22. BP Bunker Fuel Sulphur Content Clause

(a)W ithoutprejudicetoanythingelsecontainedinthisCharter,Ow nersshalldelivertheVesseltoCharterersw ith,andtheCharterersshallthereaftersupplytotheVessel,fuelsofsuchspecificationsandgradestoperm ittheVessel,atalltim es,tocom plyw iththem axim um sulphurcontentrequirem entsofanyem issioncontrolzonew hentheVesselisorderedtotradewithinthatzone.

TheCharterersalsow arrantthatanybunkersuppliers,bunkercraftoperatorsandbunkersurveyorsusedbytheChartererstosupplysuchfuelsshallcom plywithRegulations14and18ofM ARPOLAnnexVI,includingtheGuidelinesinrespectofsam plingandtheprovisionofbunkerdeliverynotes.

TheO w nersshallindem nify,defendandholdharm lesstheCharterers,andtheCharterersshallindem nify,defendandholdharm lesstheOw ners,inrespectofanyloss,liability,delay,fines,costsorexpensesarisingorresultingfrom anyfailurebyeithertocom plywiththeirrespectiveobligationsunderthissub-clause(a).

(b)Providedalw aysthattheCharterershavefulfilledtheirobligationsinrespectofthesupplyoffuelsinaccordancew ithsub-

clause(a),theO w nersw arrantthat:

(i)theVesselshallcom plyw ithRegulations14and18ofM ARPO LAnnexVIandwiththerequirem entsofanyem issioncontrolzone;and

(ii)theVesselshallbeabletoconsum efuelsoftherequiredsulphurcontentw henorderedbytheChartererstotradewithinanysuchzone.SubjecttohavingsuppliedtheVesselw ithfuelsinaccordancew ithsub-clause(a),theCharterersshallnototherw isebeliableforanyloss,delay,fines,costsorexpensesarisingorresultingfrom theVessel'sfailuretocom plywithRegulations14and18ofM ARPO LAnnexVI.

(c)ForthepurposeofthisClause,"em issioncontrolzone"shallm eanzonesasstipulatedinM ARPOLAnnexVIand/orzonesregulatedbyregionaland/ornationalauthoritiessuchas,butnotlim itedto,theEUandtheUSEnvironm entalProtectionAgency.

12

73

Page 31of 51



32/51

23. BP Indemnity Clause revised 6 November 2006

IfanoriginalBillofLadingisnotavailableatanydischargeporttow hichtheVesselm aybeorderedbyCharterersunderthisCharter,orifCharterersrequireO w nerstodelivercargotoapartyorataportotherthanassetoutintheBillofLading,thenOw nersshallneverthelessdischargesuchcargoincom pliancew ithCharterersinstructions,uponpresentationbytheconsigneenom inatedbyCharterers(theReceiver)ofreasonableidentificationtotheMasterandinconsiderationofCharterersindem nifyingOw nersinthem annerprescribedintheform ofletterofindem nityagreedandpublishedfrom tim etotim ebytheInternationalGroupofP& IClubsaddressingtherelevantcircum stances.Suchindem nityshallbedeem edtohavebeengivenw henCharterersissueinstructionstoO w nerspursuanttothisClause.

24. BP Ethical Policy Clause

Ow nersw arrantthatthey,theManagers,M asterandcrew oftheVesselareaw areofCharterers'ethicsandbusinesspolicies,assetoutintheBPCodeofConduct,entitled"Ourcom m itm enttointegrity"(acopyofw hichisavailableonw w w .bp.com ),andtheirapplicationtothirdpartycontractors.Ow nersundertaketoensurethatintheperform anceoftheirobligationsunderthisCharter,they,theManagers,M asterandcrew shallatalltim esactconsistentlywithandadheretotheprinciplesintheBPCodeofConduct.

25. BP Facilitation Payments Clause

(a)Thepartiesherebyagreethatinthecourseofperform ingtheirrespectiveobligationshereunder,theyshallnotm ake,norshalltheyrequiretheotherpartytom ake,anyfacilitationpaym ent.

(b)Forthepurposesofthisclause,aFacilitationPaym entm eansapaym ent,giftorgratuity,w hetherincashorinkind,toanygovernm entalorquasi-governm entalofficerorotherofficialinanycountryforthepurposeofprocuringtheprovisionofanyserviceorlevelofservicew hichsuchofficerorofficialisrequiredtoprovideinthenorm alcourseoftheirem ploym entordutyw ithoutsuchFacilitationPaym entbeingm ade.

(c)AnysuchFacilitationPaym ent,orotherdeparturefrom therequirem entsofthisClause,necessarilym adetoperm itefficientorcontinuedtradingoftheVesselshallbereportedtoCharterersinam utuallyagreedform at.

26. BP Trade Controls, Embargoes and Boycotts Clause

Notw ithstandinganythingtothecontrarycontainedherein,nothinginthisCharterisintended,andnothinghereinshallbesointerpretedorconstrued,toinduceorrequireeitherpartyheretotoactinanym anner(includinganyfailuretotakeanyactioninrelationtoatransaction)w hichisinconsistentw ith,penalisedbyorprohibitedunderanyUKorUSAlaw s,regulations,orotherofficialUKorUSAgovernm entrequirem entsapplicabletosuchparty,relatingtoforeigntradecontrols,exportcontrols,em bargoesorinternationalboycottsofanytype.

13

th

Page 32of 51



33/51

27. BP ISM Clause

(a)Ow nersundertakethatforthedurationofthisCharter,theVesseland"theCom pany"(asdefinedintheInternationalM anagem entCodefortheSafeOperationofShipsandforPollutionPrevention(theInternationalSafetyM anagem ent(ISM )Code)(the"ISM Code"))shallcom plyw iththerequirem entsoftheISM Code.Charterersm ayatanytim erequestaninspectionoftherelevantDocum entofCom plianceand/orSafetyManagem entCertificate,anduponreceiptofsucharequestOw nersshallforthw ithprovidethesam e.

(b)W ithoutprejudicetoanyrightsorrem ediesavailabletoCharterersundertheterm softhisCharterorunderthelaw applicablehereto,intheeventofabreachoftheaboveundertakingCharterersshallbeentitledtoputtheVesseloffhireuntilsuchtim eas

theVesselisagaincom pliantw iththerequirem entsoftheISM Codeandanyloss,dam age,expenseordelayfollow ingtherefrom shallbeforO w ners'account.

28. BP Regulatory and Guideline Compliance Clause

ThroughouttheperiodofthisCharter,theOw nersandtheVesselshallcom plywithallrelevantregulationsandguidelinesissuedbytheIMO andO CIMFand,inthecaseofaVesselcarryingLPG orLNG,w iththerecom m endationsandguidelinesissuedfrom tim etotim ebySIGTTO .Inaddition,alloperationsshallbecarriedoutinaccordancew iththelatesteditionofISG OTT1996,andanyam endm entstheretoissuedfrom tim etotim e.

29. BP H2S and Mercaptans Clause

(a)Ow nersundertakethatpriortoarrivalattheloadporttheHydrogenSulphide(H S)contentintheVessel'stankatm osphereshallhavebeenreduced,atChartererstim eandexpensestobelow thelow erof:

(i)Theperm issibleexposurelim it("PEL")asdescribedinISGOTTasam endedfrom tim etotim e.

(ii)AnyPELapplicablebyvirtueoflocalornationallaw ,ruleorregulation.

NO TEthisw illnotapplyforthe1 loadportunderthischarterparty.

(b)W heretheVesselcallsataportw ithintheUnitedKingdom ofGreatBritainandNorthernIrelandO w nersfurtherundertake,thatuponarrivalatportthecom ponentsofthevapourinthetankatm ospherewillbewithintheOccupationalExposureStandardsstatedinHSEDocum entationEH 40setdow nintheControlofSubstancesHazardoustoHealthRegulations,asam endedfrom tim etotim e.Currentlytheseregulationscontain,interalia,thefollow inglim its:-

HydrogenSulphide(H S)Long-term exposurelim it(8-hourTW Areferenceperiod)5ppmShort-term exposurelim it(15-m inutereferenceperiod)10ppm

M ercaptoaceticAcid(C H 0 S)Long-term exposurelim it(8-hourTW Areferenceperiod)1ppm

14

2

st

2

2 4 2

Page 3 of 51



34/51

(c)O w nersfurtherundertakethatthepreviouscargopriortodeliverytoCharterershadaMercaptanlevelnotgreaterthan400ppm byweightandthatpriortoarrivalattheloadporttheMercaptanscontentinthetankatm osphereshallhavebeenreducedtobelow 0.5ppm byvolum e.

(d)W herethecargoloadedonboardtheVesselhasthepotentialtocontainlevelsofH2Sinthevapourspace,thentheVessel'scargotankvapourspacesm ustbetestedforH2S24to48hoursbeforearrivalatthedischargeport.Charterersandthedischargeterm inalshallbeinform edoftheresultingH2Slevels,m easuredinpartsperm illion(ppm )24hourspriortoarrivalatthedischargeport.Them ethodofH2Stestingm ustalsobeadvisedandiftheladenpassageislessthan24hoursthentestingistotakeplaceassoonaspossibleandtheresultsim m ediatelyadvisedtoCharterersandthedischargeterm inal.

30. BP Oil Pollution Insurance Certification and COFR'S Clause

TheVesselshallhaveonboardallcertificatesofFinancialResponsibility("COFR s")inrespecttooilpollutionnecessaryfortherequiredtradew ithintheagreedtradinglim its,includingbutnotlim itedto:

(a)thecertificateofinsurancerequiredundertheInternationalConventiononCivilLiabilityforOilPollutiondam ageandtheprotocolsthereto;and

(b)UnitedStatesCoastGuardCertificateofFinancialResponsibilitym eetingtherequirem entsoftheUnitedStatesFederalOilPollutionAct1990("OPA90").

31. BP ITWF Clause

Ow nersundertaketoensurethattheterm sofem ploym entoftheVessel'sM aster,officersandcrew shallalw aysrem ainacceptabletotheInternationalTransportW orker'sFederation("ITW F")andtheVesselw illatalltim escarryanITW FBlueCardorequivalentcertificationacceptabletoITW F.

32. BP Unique Identifier Clause and US Bureau of Customs and Border Protection Clause

(a)IftheVesselloadsorcarriescargodestinedfortheUSorpassingthroughUSportsintransit,theOw nersshallcom plywiththecurrentUSCustom sregulations(19CFR4.7and178)oranysubsequentam endm entstheretoandshall(unlessCharterersrequestotherw ise)undertaketheroleofcarrierforthepurposesofsuchregulationsandshall:

(i)haveinplaceaSCAC(StandardCarrierAlphaCode)andinsertthesam eoneachbilloflading;

(ii)haveinplaceanICB(InternationalCarrierBond);

(iii)subm itcargodeclarationsbyAM S(Autom atedM anifestSystem )totheUSCustom s;and

(iv)provideCharterersandAgentsonrequestw ithdetailsoftheUniqueIdentifierinrespectofallcargocarried

(b)TheCharterersshallprovideallnecessaryinform ationtotheOw nersand/ortheiragentstoenabletheOw nerstosubm itatim elyandaccuratecargodeclaration.

15

Page 3 of 51



35/51

(c)O w nersw arrantthattheyareaw areoftheUSBureauofCustom sandBorderProtectionregulationsforenteringUSports(the"CBPRegulations"),includingbutnotlim itedtothoseregulationsissuedonDecem ber5th2003underFederalRegisterPartIIDepartm entofHom elandSecurity19CFRParts4,103,etal,andOw nersfurtherw arrantthattheywillcom plyfullywiththeCBPRegulations.

(d)TheOw nersshallassum eliabilityforandshallindem nify,defendandholdharm lesstheCharterersagainstanylossand/ordam age(excludingconsequentiallossand/ordam age)andanyexpenses,fines,penaltiesandanyotherclaim s,includingbutnotlim itedtolegalcosts,arisingfrom theO w ners'failuretocom plyw ithanyoftheprovisionsofsub-clause(a)orfailuretocom plyw iththeCBPRegulations,providedalw aysthatCharterershave,w ithinareasonableperiodafterbeingrequestedbyOw ners,providedthem w ithsuchinform ationasisreasonablyrequiredtoenablethem tocom plyw iththeCBPRegulations.Shouldsuchfailureresultinanydelaythen,notw ithstandinganyprovisioninthisCharterPartytothecontrary,[theperiodofsuchdelayshallnotcountaslaytim eor,iftheVesselisondem urrage,asdem urrage][theVesselshallbeoff-hireforanytim elost].

(e)Theassum ptionoftheroleofcarrierbytheOw nerspursuanttothisClauseandforthepurposeoftheUSCustom sRegulations(19CFR4.7)shallbew ithoutprejudicetotheidentityofcarrierunderanybilloflading,othercontract,law orregulation.

33. BP Casualty and Emergency Response Notification Clause

(a)IntheeventthattheVesselisinvolvedinanaccidentorincident,theBPCasualtyandEm ergencyResponseNotificationProcedurem ustbeapplied.Forthesepurposesanaccidentorincidentshallincludeanyem ergency,suchasafatalityoranyseriousinjury,allision,collision,grounding,fire,pollutionorotherincidentw hereim m ediateassistanceisrequired,w heretheprogressofthevoyagem aybeim pactedorw hereadversereactionfrom anyauthorities,m edia,non-governm entalorganisation("NGO ")orthegeneralpublicm aybeexpected.Thesenotificationsshouldbem adeasearlyasispracticalandsafe.

(b)SubjecttothelocationoftheVesselatthetim eoftheaccidentorincident,notificationshallbegivenim m ediatelyinthe

follow ingm anner:

InthecaseofaVessellocatedfrom w estof30degreesW estto180degrees(Am ericasRegion),notificationshallbem adebytelephonetotheBPShippingUSANotificationCentreinNaperville,Illinoisbycalling+ 1630-961-6200,follow edbyatelexcontainingthew ords"BPCasualty"toBPShippingUSAsenttotelexnum ber6738208.

(ii)InthecaseofaVessellocatedfrom Eastof30degreesW estto180degrees(M ostoftheW orld),bysendingatelexcontainingthew ords"BPCasualty"toBPShippingUKontelexnum ber290851follow edbyatelephonecalltotheBPShippingEm ergencyTelephonenum berinSunbury,UK+ 441442247147.

16

Page 3 of 51



36/51

Ineithercase,thew ords"BPCasualty"shouldappearatthebeginningofthefirstlineoftextim m ediatelyfollow ingthetelexaddress.Thewords"BPCasualty"m usthavenospaces,stopsorcom m asbetweenBandP,butm aybeintheupperorlow ercase.Iftheaccidentoccursw ithinaport,theMasterm ustcopyallm essagessenttoBPShippingtoBPShipping'sagentintheport.

(c)Notificationbyeithertelephoneortelexshouldcontainthefollow inginform ation:

Thenam eofVesselandherIM O Num b

charter party bp sample

Documents