IN THE MATTER OF THE ARBITRATION ACT 1998 AND IN THE MATTER OF AN ARBITRATION BETWEEN- Claimants (Owners) - and - Respondents (Charterers) "………………………….. " Charterparty dated 5th February 2002 INTERIM FINAL ARBITRATION AWARD WHEREAS: 1. The Claimants are the owners (hereinafter referred to as "the Owners") of the motor vessel "……………………. " It was their case that, by a charterparty -2- on the basis of the "GENCON" form evidenced by a fixture recap dated 5th February 2002, they had chartered their motor vessel "………………………… " to the Respondents as charterers (hereinafter referred to as "the Charterers") for the carriage of minimum 4,800 metric tons (up to full and complete cargo capacity of the vessel in the Charterers' option) steel products from Astrakhan (Russian Federation) to Bandar Anzali or Bandar Nowshahr (Islamic Republic of Iran) on terms and conditions more particularly set out in the said fixture recap. The Charterers denied that they had ever entered into any written agreement or any written arbitration agreement although they accepted that their cargo was loaded onto the "………………………." at Astrakhan for discharge at Bandar Anzali or Bandar Nowshahr. The Owners said that the fixture recap message provided for arbitration in London pursuant to the L.M.A.A. Small Claims Procedure and for English law to apply. They further said that Clause 33 of the charterparty drawn up by the Owners' managers in accordance with the concluded fixture as (evidenced by the fixture recap) provided: "This Contract shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Contract shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause. The arbitration shall be concluded in accordance with the London Maritime Arbitrators Association (the "L.M.A.A.") Small Claims Procedure current at the time when the arbitration proceedings are commenced." Disputes, hereinafter more particularly defined, arose between the parties for the determination of which the Owners applied to the Honorary Secretary of the London Maritime Arbitrators Association (the "L.M.A.A.") for the appointment of a sole arbitrator by the President, pursuant to Paragraph 2(b) of the L.M.A.A. -3- Small Claims Procedure 2002. In response to that application the President appointed me, Patrick O'Donovan, of Churcham House, 1 Bridgeman Road, Teddington, Middlesex, TW11 9AJ, to be the sole arbitrator under the L.M.A.A. Small Claims Procedure. I am a Member of the Baltic Exchange in the City of London and a Full Member of the London Maritime Arbitrators Association. Pursuant to the L.M.A.A. Small Claims Procedure and/or the provisions of the fixture note and charterparty referred to in Recital 2 above, the seat of the arbitration is in England. The disputes referred to me concerned the Owners' claim for a balance of demurrage in the sum of US$6,038.13, together with various ancillary expenses in the amount of £1,350 and US$1,650 (claimed as US$3,745.54), being expenses and disbursements incurred as a result (it was said) of the Charterers' unlawful refusal to sign the charterparty. They also asked me to make an interim declaratory award confirming that the charterparty drawn up by their managers (……………………………) and presented to the Charterers for signature is the charterparty governing the contractual relations between the parties. The Charterers denied liability for the sum claimed and denied that they were in breach of contract. They raised a preliminary point as to my jurisdiction on grounds set out more fully below. As indicated above, they denied that the fixture recap evidenced the terms of the agreement and they contested the validity of the alleged charterparty agreement dated 5th February 2002, asserting that the parties had never entered into any written agreement and that the charterparty was drawn up only after the cargo was delivered to the receivers. They said that they were at all times in full compliance with their duties to ship and deliver goods to the receiver and were at no time in breach of any contractual duties towards the Claimants "since such duties never existed", They said that they had already paid to the Owners the sum of US$26,000 in full and final settlement of the Owners' demurrage claim. They denied that they were in breach of any agreement or of any duty owed to the Owners (and thus .4- denied liability for the miscellaneous expenses and disbursements claimed). They said that they were entitled to refuse to sign a back-dated charterparty agreement that they said did not conform with the original terms of the performance under the initial oral negotiations. The reference proceeded as envisaged under the L.M.A.A. Small Claims Procedure by the exchange of written submissions between …………………………………………... in Istanbul and the Charterers' lawyers in Nicosia, ……………. Neither party requested an oral hearing. Following the exchange of submissions, I proceeded to consider the matter on the basis stated. Preliminary objection as to jurisdiction The Charterers contested my jurisdiction on the basis that both parties are corporate bodies duly incorporated in Cyprus. They said that the parties had never entered into any written agreement or any written arbitration agreement and had never signed any agreements or documents which included an arbitration clause. They said that they had never expressed their desire to have disputes referred to arbitration in London and that on the contrary they (the Charterers) had stated their intention to the Claimants to have any claims referred to the Cyprus courts for resolution in accordance with Cypriot law. The first point to make is that, as a matter of English law, even if a party asserts that an arbitration tribunal has no jurisdiction, that tribunal is nevertheless competent to rule on its own jurisdiction. What is known in some jurisdictions as "kompetenz kompetenz'' is enshrined in Section 30(1) of the Arbitration Act (1996) in the following terms. "30. - (1) Unless otherwise agreed by the parties, the arbitral tribunal may rule on its own substantive jurisdiction, that is, as to(a) whether there is a valid arbitration agreement, (b) whether the tribunal is properly constituted, and -5- (c) what matters have been submitted to arbitration in accordance with the arbitration agreement." In fact, this was not disputed by the Charterers who, in instructing lawyers and providing written submissions on the matter, clearly envisaged that I would provide a binding determination as to my own jurisdiction. 10. The question of whether or not there is a valid arbitration agreement is intimately bound up with the question of whether (as the Owners asserted and the Charterers denied) the terms of the contract between the parties was evidenced by the fixture recap and the charterparty drawn up by the Owners' managers and it is to that question that I now turn. The terms of the contract 11. It was the Owners' case that the contract was concluded through a chain of brokers consisting of …………………………… of Samara,…………………….. of Istanbul and of Vienna. The Charterers expressly denied this although elsewhere in their submissions they accepted that ……………………… were their brokers and accepted that negotiations for the carriage of the steel product were conducted between Bertling and the Owners. The precise chain of communication and the precise status of any intermediate brokers (other than the Charterers' own brokers, Bertling) is irrelevant in the context of the present dispute. 12. The Owners said that the negotiations leading to the formation of the contract were conducted through internet correspondence and that the results of the negotiation were documented in (and evidenced by) a fixture recap e-mail prepared by Caspian International on behalf of the Charterers. That recap (with some minor amendments) was (the Owners said) approved by them and the vessel was then firmly fixed for the voyage in question, as evidenced by an email fixture recap from Caspian International stating: -6- U PLSD TO CONFIRM HAVING FIXED CLEAN AS PER FOLLOWING RECAPITULATION OF THE TERMS AND CONDITIONS OF FIXTURE...* 13. The Owners further said that on or about 15th May 2002 the Charterers' brokers, Bertling, drafted a charterparty which the Owners found contained some small mistakes - although, with the exception of those mistakes, it did correspond to the fixture recap. There were no discrepancies in the arbitration clause. They said that on 10th March 2003 their managers sent to Bertling a draft of the charterparty which was prepared in line with the concluded fixture. The Owners said that the Charterers refused to confirm or comment on the draft but had simply replied that they were waiting for their lawyer's opinion. In fact, it duly became apparent that the Charterers did not intend to (and would not) sign the charterparty. 14. As indicated above, the Charterers denied the Owners' account of the fixture negotiations and the status of (i) the fixture recap e-mail and (ii) the charterparty drawn up by the Owners' managers. They said that they had never signed the alleged charterparty agreement dated 5th February 2002. 15. Their case was that around the beginning of February 2002 they were urgently searching for a vessel for a voyage to Iran and that at about that time they were orally notified by their brokers, Bertling, that a vessel was available at the port of loading. They said that following a short oral negotiation between Bertling and the Owners, their cargo was loaded on the "M/v…………………..". They said that they never came into contact either in writing or orally with the Owners and that no charterparty agreement or any other kind of agreement had ever been presented to them. They asserted they had never received the e-mail recap dated 5th February 2002. It was their case that the alleged charterparty was only drafted after the cargo was delivered and the receivers had commenced litigation proceedings against the Owners. They said that, when it was sent to them with instructions to sign, it was not even signed by the Owners. They said -7- they were justified in refusing to sign a back-dated charterparty agreement that was not in conformance with "the original terms of performance under the initial oral negotiations between the [Owners] and ....... Bertling." They did not, however, say what those "terms of performance" were. 16. It seemed to me that the Charterers' case was quite hopeless and flew in the face of normal shipping practice. As the Owners said, it is common chartering practice that, at the end of negotiations for the charter of a vessel, a document recording the terms of the agreement is drawn up, commonly referred to either as a "fixture recapitulation" or "fixture recap", which records the terms of the agreement between the parties, often (as here) by reference to a pro forma charterparty. The Charterers' case that the negotiations were all conducted orally and the outcome never reduced to writing was simply incredible. The Charterers accepted that demurrage was due under the contract (whatever that was) and that the Owners were entitled to exercise a lien. It is inconceivable that these complex provisions were simply confirmed during a telephone conversation between Bertling and the Owners. Countless other provisions would need to be dealt with and agreed during the negotiations that were not relevant in the context of this dispute and it seemed to me quite absurd to suggest that those terms would never have been reduced to writing. 17. As I indicated above, the Charterers were not able (nor did they attempt) to say to what extent the fixture recap e-mail did not accord with the terms agreed. They did not point to any other documents evidencing the terms of the contract. Indeed, their case was wholly inconsistent since on the one hand they argued that there was no contract (the effect of their denial that they "were at no time in breach of any contractual duties towards the [Owners] since such duties never existed"); on the other hand they accepted that there was a contract (as they had to, because they shipped cargo on board the vessel) but maintained that it was concluded wholly orally. -8- 18. In the absence of any persuasive (or indeed any) evidence as to what other terms the vessel might have been fixed on, I had no hesitation at all in concluding that the fixture recap e-mail enclosed at Annex 1 did indeed evidence the terms of the contract concluded between the parties. I was assisted in reaching that conclusion by the fact that the Charterers throughout performed entirely in accordance with the terms of the recap: they loaded the vessel, paid the freight, ordered the exercise of a lien on the cargo and paid demurrage in accordance with its terms. They never objected at that time to the existence of a charterparty or to any of the terms asserted by the Owners. It was not disputed that Bertling had authority to negotiate on the Owners' behalf and, as indicated above, the fact that there were a number of intermediate brokers was irrelevant. I should stress that Bertling (the Charterers' own brokers) drew up a charterparty which, whilst it contained some small mistakes, was based entirely on (and was wholly consistent with) the fixture recap of 5th February 2002. 20. Much play was made by the Charterers of the fact that the charterparty drawn up by the Owners' broker was never signed by either party and that it was drawn up some time after the event. The first point to make is that, as a matter of English law, it is not a requirement for a valid charterparty that it be signed by either or both parties. All that matters is that it reflects the agreement concluded between the parties (as Annex 2 did). Similarly, as a matter of chartering practice it is not at all uncommon for charterparties to be drawn up after the event indeed, it would be virtually impossible for a typed-up charterparty to be brought into existence simultaneously with the conclusion of the agreement between the parties. What happened here is quite normal. 21. In the circumstances, I had no hesitation in finding as a fact that the contract between the Owners and Charterers, was evidenced by the fixture recap e-mail attached at Annex 1. I also had no hesitation in concluding that the terms of the charterparty drawn up by the Owners' managers and attached hereto at Annex 2 -9- was correctly drawn up in accordance with the fixture recap and in accordance with the agreement concluded between the parties. 22. Having found that a contract existed on the terms set out in the fixture recap and the "……………" charterparty drawn up by the Owners' managers, I next had to consider whether it contained a London arbitration clause incorporating the provisions of the L.M.A.A. Small Claims Procedure. It plainly did because the recap said so. The Charterers adduced no evidence whatsoever to support their allegation that they were insisting on the jurisdiction of the Cyprus Court and Cypriot law. It is to be noted that they did not go so far as to say that the parties had agreed Cyprus law and jurisdiction - such a submission was bound to fail because it was contradicted by the express terms of the contract. The Charterers5 own brokers included a London arbitration clause in their draft charterparty (providing for English law and the L.M.A.A. Small Claims Procedure). Accordingly, I had no hesitation in concluding that the contract did contain an arbitration clause in the terms asserted by the Owners and that I have jurisdiction to determine the disputes that have arisen. The claim for outstanding demurrage 23. It was not in dispute that demurrage was incurred at the port of discharge and that, for the purpose of securing the demurrage payment, the Owners exercised a lien on the cargo with a view to persuading the receivers to settle the demurrage claim themselves. Similarly, it was not in dispute that the Charterers had instructed the Owner in writing to lien the cargo and to release it only upon payment of demurrage and that (again pursuant to the Charterers' written instructions) the cargo was discharged into a shore warehouse under the Owners' control. It was also common ground between the parties that, on 14th June 2003, a tri-partite settlement agreement was reached between the Owners, the Charterers and the receivers whereby the Owners agreed to accept from the Charterers a reduced amount of demurrage in the sum of US$26,000 in full and final settlement of the demurrage due. -10- 24. It was the Owners' case that it was a term of the tri-partite agreement that the receivers would cease any further proceedings against the Owners/their agents in Iran and would not claim any damages due to the late delivery of the cargo. The Owners produced a written document which they said reflected the terms of the amicable settlement but the Charterers asserted this did not reflect the terms agreed on 14th June 2002. However, they did not specify in what way that was so and they did not seek to set out precisely what terms had been agreed. 25 In the absence of any positive case as to what other terms had been agreed, I accept that the written document (attached hereto at Annex 3) did in fact reflect what had been agreed. It is pertinent to note that it was sent to the Charterers' brokers, Bertling, on 15th June 2002 and the agreed demurrage due under it was paid by the Charterers on 18th June 2002. The Charterers produced no contemporaneous evidence that they had ever objected to the terms relied on by the Owners. On the contrary, the contemporaneous evidence showed that the written version drawn up by the Owners did reflect the terms agreed and that the Charters performed their obligations under it (although, as can be seen below, the receivers did not). 26. It was not disputed that demurrage in the sum of US$32,038.13 had been incurred. The only defence that the Charterers raised to the claim for that demurrage was to say that they had paid the sum of US$26,000 in full and final settlement pursuant to the agreement dated 14th June 2002. The Owners retorted that the consideration for their agreeing to accept a lesser amount was the undertaking to cease any further procedures against the Owners' agents in Iran and not to claim damages due to delay in delivery. It was common ground that the receivers have commenced (and maintained) litigation against the Owners/their agents in Iran. Accordingly, the Owners said, there was a failure of consideration which meant that they were entitled to claim (and be awarded) the balance of US$6,038.13 (the difference between the agreed demurrage and the amount paid by the Charterers) under the settlement agreement. -11- 27. It seemed to me that this submission was flawed as a matter of law. There had not been a total failure of consideration but merely a partial one. The promise not to pursue proceedings in Iran flowed from the receivers - not the Charterers. Their promise was to pay the net amount of US$26,000, which they did. In legal terms, the contract was partly performed and the Owners derived some of the benefit for which they had bargained. In those circumstances, their claim for the balance fails (as does the claim for interest for late payment on the amount of US$26,000 actually paid). 28. As for the miscellaneous expenses, the basis of the claim for these was that they had been incurred as a result of the Charterers' refusal to sign the charterparty. It seemed to me that the better way to look at it was that they were costs of the arbitration which were either recoverable or not, depending on the outcome of the case. As a matter of English law, costs follow the event. Although the Owners' claim for the balance of the demurrage failed, they were completely successful as regards the main dispute between the parties - namely the status of Annexes 1 and 2. The monetary claim was peripheral. Accordingly, I have concluded that the Owners "registration are fee" entitled (in fact, to their the costs fixed which Small include Claims fee what of they call the £1,250 and the administration fee of £100 payable to the L.M.A.A. - total £1,350). The Owners are also entitled to their own costs, comprising the fees and disbursements of Vassilev Maritime in the total amount of US$1,650. It was not disputed that these fees had been (or would be) incurred and no objection was taken to them in principle. Accordingly, they were in principle allowable. They fell within the amount of costs recoverable under the L.M.A.A. Small Claims Procedure and accordingly I allowed the claim for fees and disbursements in full (US$3,745.54). Summary 28. It will be seen that I have found that the terms of the fixture recap dated 5th February 2002 (Annex 1) and the charterparty drawn up by the Owners' managers (Annex 2) accurately reflected the agreement reached between the - 12- parties and that, in the circumstances, I have jurisdiction to deal with disputes arising between them. The Owners' claim for the unpaid balance of demurrage in the sum of US$6,038.13 fails. The Owners claim for extra expenses in the sum of US$3,745.54 succeeds in full as a claim for costs. 1 have allowed compound interest on the sums awarded at a commercial rate for the relevant periods. As requested, I have reserved jurisdiction to deal with the Owners' claim for "any further damage arising as a result of [the Charterers'] breach of contract". NOW I the said Patrick O'Donovan, having accepted the burden of this reference, and having carefully and conscientiously considered the submissions and documents before me and having given due weight thereto, DO HEREBY MAKE. ISSUE AND PUBLISH this my Interim Final Award as follows :- A. I FIND AND HOLD AND DECLARE that the charterparty drawn up by the Owners' managers and presented to the Charterers (attached hereto as Annex 2) is the charterparty governing the contractual arrangements between the parties and that I have jurisdiction to deal with disputes arising under it. B. I FURTHER FIND AND HOLD that the Owners' claim for unpaid demurrage in the sum of US$6,038.13 fails in its entirety and is hereby dismissed. C I AWARD AND ADJUDGE that the Charterers shall bear and pay their own and the Owners' costs of the reference in so far as they relate to the matters herein determined (and I HEREBY ASSESS AND DETERMINE the Owners' said costs in the sum of US$3,745.54) PLUS interest thereon at the rate of 3.5% (three and one-half per cent) per annum or pro rata compounded at three monthly rests from the date of this Award until the date of payment. d. I DECLARE that this Award, although interim in the reference, is FINAL as to the matters hereby determined and I RESERVE JURISDICTION to myself to make a further Award or Awards as may be appropriate in respect of all outstanding disputes between the parties. -13- GIVEN under my hand at the seat of the arbitration in London this 16m day of October 2007 ………………… …………….. Sole Arbitrator Witness ANNEX 1 Fixture Recap E-Mail dated 5th February 2000 From: Sent: To: Subject: …………………………………………………………. / Tuesday, 05 February, 2002 4:05. PM …………………. MV …………………… …………../…………. GD, PLS KINDLY SIGN AND STAMP FOLL RECAP: PLSD TO CONFIRM HAVING FIXED CLEAN AS PER FOLLOWING RECAPITULATION OF THE TERMS AND CONDmONS OF FIXTURE: M/V ……………………. DWT 5100 AT 3.57 M SSWD, BLT 1980 RUSSIAN FLAG T/NT 4949/2146 LOA/BEAM/DEPTH 138.40/16.5/8.0 M 2/2 HO/HA DIMS OF HO: NR 1. 44.40 X 12.45/1330 X 8.0 2. 44.40 X 12.45/13.30 X 8.0 FORE PART OF NR 1 HOLD GOES STEEP 19DEG, STARTING 6 METRES FROM THE FORE BULKHEAD CU CAP 9363 CBM HATCH COVERS PIGGY BACK TYPE DIMS OF HA NR 1.44.40X13.30 2. 44.40 X 13.30 GEARLESS, BOXSHAPED, STEEL FLOORED, B+E AFT EQUIPPED WITH A BOWTHRUSTER AND TWIN SCREW LASSED MSP ICE 20 BY RUSSIAN MARTTTME REGISTER OF SHIPPING : AND H+M COVERED BY INGOSTSTRAKH MOSCOW TYPE - DRY CARGO ALL DETS ABV ARE DEEMED TO BE TRUE AND CORRECT BUT NO GURANTEE COULD BE GIVEN FOR: - ACCT …………………………., CYPRUS, //^. Z>4&4 COUA& - ABT 4800 UP TO F+C.C.C. IN CHOPT BUT ALWAYS UP TO THE PERMISSABLE DRAFT IN THE RUSSIAN RIVER SYSTEM OF STEEL PRODUCTS, UNDER DECK STOWAGE ONLY - LOAD: 1-2 GSB AT CHOPT ASTRAKHANJ - DISCH: BANDAR ANZALI OR NOWSHAHR CHOPI—95P-LSB AAAA BE _, I7C 09 FEB - 11 FEB 2002 """ /) '- LOAD: 800 MTS PWWD OF 24 CONS HRS TIME FROM 1700 ON FRI OR DAY PRECEDING HOLIDAY TILL 0800 ON MON OR THE DAY AFTER A HOLIDAY NOT TO COUNT EIU - DISCH:800 MTS PWWD OF 24 CONS HRS TIME FROM 1200 ON THU OR DAY PRECEDING HOLIDAY TILL 0800 ON SAT OR THE DAY AFTER A HOLIDAY NOT TO COUNT EVEN IF USED - HOLIDAYS AS PER CUSTOMS OF THE PORT BENDS - FRT USD 19,25PMT FIOS LSD ALL-IN, INCLUDING ICEBREAKER SURCHARGE - FRT PAYABLE W/I 3 BD AFTER SIGNING AND/OR RELEASING OF BILLS OF LADING BUT IN ANY CASE BBB. IN ANY CASE IF CHARTERERS REQUEST FOR BILLS OF LADING MARKED 'FREIGHT PREAPID' SAME TO BE KEPT IN AGENTS' CUSTODY UNTIL FREIGHT IS BEING CONFIRMED PAID TO THE OWNERS AND ONLY AFTER INSTRUCTION IN WRITING FROM THE OWNERS. - ORIGINAL BS/L MARKED "FREIGHT PREPAID" EOTER TO BE KEPT IN AGENTS CUSTODY UNTIL FREIGHT IS PAID OR/AND DESPATCHED BY MASTERS BAG TO DISCHPORT ,~, FDEUCLDNRVAOCLQNL ' > DEM USD 2100 PDPR/FD BE - UDISP DEM IF ANY PAYABLE WITHIN 10BD AFTER RECEIPT OF WELL-READABLE FAX OR SCAN COPIES OF NOR, SOF AND T/S - ANY TAXES/DUES ON CGO/FRT FR CHRTS' ACCT - VSL FREE OF EXINS - OABE: NEW AGENT/ISL - C/P TO INCRPORATE 'GENERAL PARAMOUNT/BOTH-TO-BLAME COLLISION', '…………………………' AND …….. BUNKERING DEVIATION' CLAUSES (WORDING AS PER FAX DD.1.02.2002.) - G/A IN LONDON AS PER Y/A/R 94 - ARB IN LONDON, LMAA SMALL CLAIMS PROCEDURE,ENGLISH LAW - OWISE CHARTERERS' PROFORMA CHARTER PARTY BSS MV TURICUM/JOYFUL CP DD.4.04.2001. TO BE LOGICALLY AMMENDED AS PER FMTAND WITH FOLLOWING ALTERATIONS: Q GCN76PARTI TO BE AMENDED AS PER MAIN TERMS AGREED GCN 76 PART II CL 5 DELETE LINES FROM 73 TO 77 (VESSEL IS GEARLESS) GCN 76 RIDER CL18 DELETE (CL.10 FROM PART II COVERING THE MATTER) Tf RMS IS AGREED WORDING : OF 800 MJSCL19 TO BE AMENDED AS PER MAIN ' PWWQLOF 24 CONS HRS CL.21 TO BE WITH THE FOLLOWING V VESSEL TO BE LOADED AT THE RATE TIME FROM 1700 ON FRI OR DAY PRECEDING i'-.y AFTER A HOLIDAY NOT TO COUNT EIU. VESSEL TO BE DISCHARGED AT THE RATE OF 800 MTS PWWD OF 24 CONS HRS TIME FROM 1200 ON THU OR DAY PRECEDING HOLIDAY TILL 0800 ON SAT OR THE DAY AFTER A HOLIDAY NOT TO COUNT EVEN IF USED. LAYTIME TO BE NON REVERSIBLE' CL.23 DELETE WORD 'PERFECTLY' CL.28 DELETE AS FROM 'COMPULLSORY TALLY...' TILL THE END. CL.34 TO BE AMENDED AS PER MAIN TERMS AGREED CL.37 TO BE AMENDED AS PER MAIN TERMS AGREED CL.38 TO READ IN FULL: MASTER HAS THE RIGHT TO INSERT EVENTUAL REMARKS ON CARGO IN M/R, FOR WHICH CHRTS WILL ISSUE LETTER OF INDEMNITY IN OWNS FAVOUR IN OWNS PANDI WORDING SIGNED BY CHRTS ONLY. CL.41 TO BE AMENDED AS PER MAIN TERMS AGREED CL.43 DELETE (THE VESSEL IS GEARLESS) CL.48 DELETE (NOT RELATIVE TO OUR FIXTURE) CL.57 THE WORDING OF THE CLAUSE TO BE: 'IN THE CASE THE CHARTERERS FAIL LOAD AND/OR DISCHARGE THE VESSEL WITHIN THE TIME STIPULATED IN CLAUSE 21 THE CHARTERERS ARE TO PAY DEMURRAGE AT THE RATE OF USD 2100,00 PER DAY PRO RATA AT THE PORTS OF LOADING AND DISCHARGING. FREE DESPATCH BOTH AT THE LOADING AND DISCHARGING PORTS. UNDISPUTABLE DEMURRAGE IF ANY PAYABLE BY CHRTS WITHIN 10BD AFTER RECEIPT OF WELL-READABLE FAX OR SCAN COPIES OF NOR, SOF AND T/S. CL.60 TO BE DELETED (NOT APPICABLE) CL66 TO BE DELETED CTHE VESSEL IS GEARLESS) - STEM/S/R APPROVAL GRANTED - TTL 5.0 PCT ON F/D/D COMM HERE END cAWAITING YOURS BY FAX Best regards, …………………………... Tel \ fax: +7 8462 321170 +7 8462 708053 Telex : (64) 914397 E-mail :…………………… 3 ANNEX 2 Charterparty dated 5th February 2000 drawn up by the Owners' Managers LShipbroker ………………………. Turkenstrasse 25/ 8/19 1090 Wien RECOMMENDED THE BALTIC AN0 INTERNATIONAL CONFERENCE UNIFORM GENERAL CHARTER (AS REVISED 1 922 and 1 976) INCLUDING "F.I.O." ALTERNATIVE, ETC. (To be used for trades for which no approved form is in force) CODE NAME: "GENCON" z Place and date Istanbul, 05 February 2002 3 Owners/Place of business (CI. 1) 4. Charterers/Place of business (CI, 1) …………………………………………………..., ………………………. Ltd Lambousa Street Nicosia, Cyprus Nicosia 5. Vessel's name (CI. 1) Cyprus …………………………. aGRT/NRT(CI.1) 4949/2146 7 Deadweight cargo carrying capacity in tons (abt) (CI. 1) 8 Present position (CI. 1) abt 4850 metric tonnes trading 9. Expected ready to load (abt) (C11) 09 February 2002 10. Loading port or place (CI. 1) 11. Discharging port or place (CI. 1) Astrakhan (Russian Federation) Bandar Anzali or Bandar Nowshahr (Iran) 1-2 safe always accessible berths 1 safe always accessible berth 12. Cargo (also state quantity and margin in Owners' option, If agreed; if full and complete cargo not agreed state "part cargo" (CI. 1) about 4800 metric tonnes Up to full and complete capacity in Charterers' option but always up to the permissable draft in the Russian River System of steel products, under deck stowage only. See also clause 18. 14. Freight payment (state currency and method of payment: 13. Freight rate (also state if payable on delivered or intaken quantity (CI, 1) USD also beneficiary and bank account) (CI. 4) 19,25 (nineteen dollars and twenty five cents) per metric tonne In US Dollars to the account stated in the Owners' freight invoice. See also clause 35 15. Loading and discharging costs (state alternative (a) or (b) of CI. 5; also indicate if 16.Laytime See clause20 vessel is geariess) f.i.o.s. CI. 5(b) shall apply, Lashing, securing and dunnaqinq of the cargo shall a)for loading: be for Charterers' account b)for discharging: e) total laytime for loading/discharging: 17. Shippers (Name and address) (CI. 6) 18. Demurrage rate (loading and discharging) (CI. 7) 19 Cancelling date (CI. 10) USD 2100,- (two thousand and one hundred) 11 February 2002 See also clause 47 20 Brokerage commission and to whom payable (CI. 14) 5.00 % payable as follows: 1,25 % to Caspian International, Samara: 1,25% to Pegasus, Istanbul: 2,50% to F.H. Bertling GmbH 21. Additional clauses covering special provisions, if agreed From 18 to 48 both inclusive are deemed to be incorporated in this Charter Party, It is mutually agreed that this Contract shall be performed subject to the conditions contained In this Charter which shall include Part I as well as Part II. In the event of a conflict of conditions, the provisions of Part I shall prevail over those of Part II to the extent of such conflict Signature (Owners) Signature (Charterers) \r) PART 11 "Gencon" Charter (As revised 1922 and 1976) 1 It is agreed between the party mentioned in Sox 3 as Owners of the steamer or motor-vessel named in Box 5, of the gross/net Register tons indicated in Box 6 and carrying about the number of tons of deadweight cargo stated in Box 7, now in position as stated in Box 8 and expected ready to load under this Charter about the date indicated in Box 9, and the party mentioned as Charterers in Box 4 that: The said vessel shall proceed to the loading port or place stated in Box 10 or MO near there to as she may safely get and lie always afloat, and [here load afull-and-complete cargo (if shipment of deck cargo agreed same to be at Charterers risk) as stated in Box 12 (Charterers to provide all mats and/or wood for dunnage and any separations required, the Owners allowing the use of any dunnage wood on board if required) which the Charterers bind themselves to ship, and being so loaded the vessel shall proceed to the discharging port or place stated in Box 11 as ordered on signing-Bills of Landing so near there to as she may safely-get and lie always afloat, and there deliver the cargo on being –paid freight on delivered quantity as indicated in Box 13 at the rate started on Box 13 2 Owners' Responsibility Clause Owners are to be responsible for loss of or damage to the goods or for delay in delivery of the goods only in case the loss, damage or delay has been caused by the improper or negligent stowage of the goods (unless stowage performed by shippers/Charterers or their stevedores or servants) or by the personal want of due diligence on the pari of the Owners or their Manager to make the vessel In all respects seaworthy and to secure that she is properly manned, equipped and supplied or by the personal act or default of the Owners or their Manager And the Owners are responsible for no loss or damage or delay arising from any other cause whatsoever, even from the neglect or default of the Captain or crew or some other person employed by the Owners on board or ashore for whose acts they would, but for this clause, be responsible, or from unseaworthiness of the vessel on loading or commencement of the voyage or at any time whatsoever Damage caused by contact with or leakage, smell or evaporation from other goods or by the inflammable or explosive nature or Insufficient package of other goods not to be considered as caused by improper or negligent stowage, even if in fact so caused. 3 Deviation Clause The vessel has liberty to call at any port OR ports in any order for any purpose, to sail without pilots, to tow and/or assist vessels in all situations, and also to deviate for the purpose of saving life and/ or property 4 Payment of Freight See Clause 35 ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… 5 Loading/Discharging Costs …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 4-7 48 48 50 5-1 53 53 54 55 56 57 58 S8 60 6-1 62 63 64 65 66 67 68 69 70 6 Laytime See Clause20 *(a)-Separate Laytime for Loading and Discharging The cargo shall be loaded within the number of running hours as indicated In Box16 weather permitting Sunday and holidays excepted Unless used in which event time actually used shall count The cargo shall be discharged within the number of running hours as-indicated inbox16 Weather permitting Sundays and holidays excepted unless used in which event time-actually used shall count (b) Total Laytime of Loading and discharging The cargo should be loaded and discharged with the number of total running hours as indicated in Box16, weather permitting, Sundays and holydays excepted unless used in which event time actually used shall count. (c) Commencement of Laytime (Loading and discharging) Laytime for loading and discharging shall commence at 1pm if notice of readiness is given before none and at 6 am next working day if notice given during office hours after noon. Notice of loading port to be given shippers named in Box17 Time actually used before commencement of laytime shall count. Time lost in waiting for berth to count as loading or discharging Time as the case may be. 'indicate alternative (a) or (b), as agreed, in Box 16 7 Demurrage See Clause_42 Ten running days on demurrage at the rate the rate stated in Box 18 per day pro rata for any part of a day, payable day by day to be allowed merchants altogether at ports of loading and discharging 8 Lien Clause Owners shall have a lien on the cargo for freight, dead-freight, demurrage and damages for detention. Charterers shall remain responsible for dead-freight and demurrage (including damages for detention), incurred at port of loading. Charterers shall also remain responsible for freight and demurrage(including damages for detention) incurred at the port of discharge, but only to such extent as the Owners have been unable to obtain payment thereof by exercising the lien on the cargo. 9 Bills of Lading The Captain to sign Bills of Lading at such rate of freight as presented without prejudice to this Charter-party, but should the freight by-Bills-of-Lading-amount-to-less-than-the total-chartered Freight in the difference should be paid to the Captain in cash on signing Bills of landing in any case not less than freight agreed in this Charter Party. 10 Cancelling Clause Should the vessel not be ready to load (whether in berth or not) on or before the date indicated in Box 19, Charterers have the option of cancelling this contract, such option to be declared, if demanded, at least 48 hours before vessel's expected arrival at port of loading, should the vessel delayed on account of average or otherwise Charterers to be informed as soon as possible and the vessel is delayed for more than 10 days after the day she is stated to be expected ready to load charterers have the option of Cancelling this contract unless a cancelling date has been agreed upon 11 General Average 130 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 402 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 General average to be settled according to York-Antwerp Rules, 1974 and subsequent amendments. Proprietors of cargo to pay the cargo's share in the general expenses even If the same have been necessitated though neglect or default of the Owners' servants (see clause 2). 12 Indemnity 131 132 Indemnity for non-performance of this Charter-party, proved damages, not exceeding estimated amount of freight 13 Agency See Clause41 In every case the Owners shall appoint his own broker or Agent both all the port of loading an port of discharge 14 Brokerage A brokerage commission at the rate stated in Box 20 on the freight, dead freight earned is due to the party mentioned in Box 20. In case of non-execution at least 1/3 of the brokerage on the estimated amount of freight and dead-freight to be paid by the Owners to the Brokers as indemnity for the tetter's expenses and work. In case of more voyages the amount of indemnity to be mutually agreed. 15 GENERAL STRIKE CLAUSE 136 137 138 139 140 141 142 120 121 122 123 124 425 -1-26 127 128 129 133 134 135 143 144 145 146 147 148 71 72 7-3 Neither Charterers nor Owners shall be responsible for the consequences of any strikes or lock-outs preventing or delaying the fulfilment of any obligations under this contract 149 150 151 74 745 75 7-7 78 If there is a strike or lock-out affecting the loading of the cargo, or any part of it, when vessel is ready to proceed from her last port or at any time during the voyage to the port or ports of loading or after her arrival there Captain or Owners may ask Charterers to declare, that they agree to reckon the laydays as if there were no 152 153 154 155 156 id strike or lick-out. Unless Charterers have given such declaration in writing(by telegram if necessary) within 24 hours Owners shall have the option of cancelling this contract. If part cargo has already been loaded, Owners must proceed with same, (freight payable on loaded quantity only) having liberty to complete with other cargo on the way tor their own account. If there is a strike or lock-out affecting the discharging of the cargo, on or after vessel's arrival at or off port of discharge and same has not been settled within 48 hours, Receivers shall have the option of keeping vessel waiting until such strike or lock-out is at an end against paying half demurrage after expiration of the time provided for discharging, or of ordering the vessel to a safe port where she can safely discharge without risk of being detained by strike or lockout. Such orders to be given within 48 hours after Captain or Owners have given notice to Charterers of the strike or lock-out affecting the discharge. On delivery of the cargo at such port, all conditions of lis Charter-party and the Sill of Lading shall apply and vessel shall receive the same freight as if she had discharged at the original port of destination, except that if the distance of the substituted port exceeds"-100 nautical miles, the freight on the cargo delivered at the substituted port to be increased in proportion. 16 War Risks ("Voywar 1950") (1)ln these clauses 'War Risks" shall include any blockade or any action which is announced as a blockade by any Government or by any belligerent or by an organised body, sabotage, piracy, and any actual or threatened war hostilities, warlike operations, civil war, civil commotion, or revolution. (2)lf any time before the Vessel commences loading, it appears that performance of the contract will subject the Vessel or her Master and crew or her cargo to war risks at any stage of adventure , the Owners shall be entitled by letter or telegram despatched to the Charterers, to cancel this Charter (3)The Master shall not be required to load cargo or to continue loading or to proceed on or to sign Bill(s) of Lading for any adventure on which or any port at which it appears that the Vessel, her Master and crew or her cargo will be subject to war risks. In the event of the exercise by the Master of his right under this Clause after part or full cargo has been loaded, the Master shall be at liberty either to discharge such cargo at the loading port or to proceed therewith. In the latter case the Vessel shall have the liberty to carry other cargo for Owners' benefit and accordingly to proceed and load or discharge such other cargo at any other port or ports whatsoever, backwards or forwards, although in a contrary direction to or out of or beyond the ordinary route. In the event of the Master electing to proceed with part cargo under this Clause freight shall in any case be payable on the quantity delivered, (4)lf at the time the Master elects to proceed with part or full cargo under Clause 3, or after the Vessel has left the loading port, or the last of the loading ports, if more than one, it appears that further performance of the contract will subject the Vessel, her Master and crew or her cargo to war risks the cargo shall be discharged, or if the discharge has been commenced shall be completed, at any safe port in vicinity of the port of discharge as may be ordered by the Charterers. If no such orders shall be received from the Charterers within 48 hours after the Owners have despatched a request by telegram to the Charterers for the nomination of a substitute discharging port , the Owners shall be at liberty to discharge the cargo at any safe port which they may, in their discretion, decide on and such discharge shall be deemed to be due fulfilment of the contract of affreightment. In the event of cargo being discharged at any such other port, the Owners shall be entitled to freight as if the discharge had been effected at the port or ports named in the 8ill(s) of Lading or to which the Vessel may have been ordered pursuant thereto. (5) (a)The Vessel shall have liberty to comply with any directions or recommendations as to loading, departure, arrival, routes, ports of call, stoppages, destination, zones, waters, discharge, delivery or in any other wise whatsoever (including any direction or recommendation not to go to the port of destination or to delay proceeding thereto or to proceed to some other port )give by any Government or 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 by any belligerent or by any organised body engaged in civil war, hostilities or warlike operations or by any person or body acting or purporting to act as or with the authority of any Government or by any belligerent or by any organised body or by any committee or person having under the terms of the war risks insurance on the Vessel, the right to give any such directions or recommendations. If by reason of or in compliance with any such direction or recommendation, anything is done or is not done, such shall not be deemed a deviation (b)lf, by reason of or in compliance with any such directions or recommendations, the Vessel does not proceed to the port or ports named in the Biil(s) of Lading or to which she may have been ordered pursuant thereto, the Vessel may proceed to any port as directed or recommended or to any safe port which the Owners in their discretion may decide on and there discharge the cargo. Such discharge shall be deemed to be due fulfilment of the contract of affreightment and the Owners shall be entitled to freight as if discharge had been effected at the port or ports named in the Bill(s) of Lading or to which the Vessel may have been ordered pursuant thereto. (6) All extra expenses (including insurance costs) involved in discharging cargo at the loading port or in reaching or discharging the cargo at any port as provided in Clauses 4 and 5 (b) hereof shall be paid by the Charterers and/or the cargo owners, and the Owners shall have a lien on the cargo for all moneys due under these Clauses. 17 GENERAL ICE CLAUSE Port of loading (a) In the event of the loading port being inaccessible by reason of Ice when vessel is ready to proceed from her last port or at any time during the voyage or on vessel's arrival or in case frost sets in after vessel's arrival, the Captain for fear of being frozen in is at liberty to leave without cargo, and this Charter shall be null and void (b)lf during loading the Captain, for fear of vessel being frozen in, deems it advisable to leave, he has liberty to do so with what cargo he has on board and to proceed to any other port or ports with option of completing cargo for Owners' benefit for any port or ports including port of discharge. Any part cargo thus loaded under this Charter to be forwarded to destination at vessel's expense but against payment of freight, provided that no extra expenses be thereby caused to the Receivers, freight being paid on quantity delivered (in proportion if lumpsum), all other conditions as per Charter. (c) In case of more than one loading port, and if one or more of the ports are closed by Ice, the Captain or Owners to be at liberty either to load the part cargo at the open port and fill up elsewhere for their own account as under section (b) or to declare the Charter null and void unless Charterers agree to load full cargo at the open port. (d) This Ice Clause not to apply In the Spring. Port of discharge (a)Should Ice (except in the Spring)prevent vessel from reaching port of discharge Receivers shall have the option of keeping vessel waiting until the re-opening of navigation and paying demurrage, or of ordering the vessel to a safe and immediately accessible port where she can safely discharge without risk of detention by ice. Such orders to be given within 48 hours after Captain or Owners have given notice to Charterers of the impossibility of reaching port of destination. (b)lf during discharging the Captain, for fear of vessel being frozen in deems it advisable to leave, he has liberty to do so with what cargo he has on board and to proceed to the nearest accessible port where she can safely discharge. (c ) On delivery of the cargo at such port, all conditions of the Bill of Lading shall apply and vessel shall receive the same freight as if she had discharged at the original port of destination, except that if the distance of the substituted port exceeds 100 nautical miles, the freight on the cargo delivered at the substituted to be increased in proportion. 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 256 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 Additional clauses to Charter Party "Gencon 76" m/v "……………………."dated'OSFebruary 2002 Owners: ……………………………………………………………, Cyprus Charterers: …………………. Ltd, Cyprus CI.18. The total quantity will be about 4800 mts up to full and complete cargo capacity in Charterers' option but always up to the permissible draft in the Russian River System. CI. 19. First opening and last closing of the hatches to be done by crew, if allowed by local authorities, in vessels time and at Owners expense. Should the crew not be allowed to open/close the hatches, then same labour to be for Charterers account. CI.20. Vessel to be loaded at the rate of 800 mts per weather working day of 24 consecutive hours whereas time from 1700 hrs on Friday or the day prior a holiday till 0800 hrs on Monday or the day after a holiday not to count even if used. Vessel to be discharged at the rate of 800 mts per weather working day of 24 consecutive hours whereas time from 1200 hrs on Thursday or the day prior a holiday till 0800 hrs on Saturday or the day after a holiday not to count even if used. Laytime to be non-reversible. CI.21. Overtime expenses to be for account of the party ordering same. However officers' and crew overtime to be for Owners' account. CI.22. The vessel's holds to be clean, dry and in every respect suitable to load the relevant cargo, at independent surveyors satisfaction before notice of readiness may be accepted. Should the vessel not comply with independent surveyors inspection as to cleanliness, the Owners are to clean at their time and their expense, notwithstanding Charterers' rights under the cancellation clause . CI.23. The vessel to be suitable for the type of cargo chartered under this Charter Party. No cargo to be loaded into deep tanks or in her inaccessible places. Stevedores, although appointed and paid by the Charterers/ Shippers and/or Receivers are considered to be servants of the vessel and are to work under the direction and control of the Master, who will be responsible for proper stowage and seaworthy trim of the vessel. CI.24. All stevedore damage to the ship incurred during loading/ discharging to be settled between Owners and Stevedores. In case Owners are unable to obtain settlement from Stevedores, Charterers to assist to their best the Owners to recover the cost of damage from Stevedores. CI.25. The Charterers/ Shippers/ Receivers shall have liberty to work during excepted periods and Master/ Owners are to allow such work to be done. CI.26. Sufficient cash for ships disbursements to be advanced by the Owners to the Agents at the port of loading and discharging prior vessel's arrival and in any case prior completion of loading, failing which the Charterers are not to be responsible for any delays caused thereby . CI.27. Tally , if any, to be for account of the party ordering same. CI. 28. The vessel to supply free of expense to the Charterers light as on board if required and same to be in good working order. CI.29. Any dues/taxes/charges on vessel to be for Owners' account, same on cargo to be for Charterers' account. CI.30. Owners confirm that vessel is guaranteed classed Lloyds 100A1 or equivalent and that this class will be maintained for the whole duration of the voyage. 1 \(* Additional Clauses to Charter Party Gencon 76"m/v …………………. dated 05 February 2002 Owners: ……………………………………………. Ltd, Cyprus Charterers; …………………….. Ltd, Cyprus The vessel is insured against risk for cargo claims, water pollution and collision by…………………. CL3L Atmospheric rust is not to be considered as remark for damaged cargo. Any remarks to appear in Mates Receipt only and Charterers will cover Owners with Charterers' Letter of Indemnity in Owners' P and I wording. CI.32. Owners guarantee that the vessel is not intended for break-up upon completion of this voyage. Should, contrary to above guarantee, the vessel be sold for break-up, before she has completed discharge, and been released by Receivers of the cargo, then Owners to pay whatsoever insurance penalty might be against Charterers forthwith. CI.33. This Contract shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Contract shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or reenactment thereof save to the extent necessary to give effect to the provisions of this Clause. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Small Claims Procedure current at the time when the arbitration proceedings are commenced. CI.34. This Charter Party shall be kept strictly private and confidential. CI.35. The freight is deemed earned upon completion of loading, discountless, non-returnable ship and/ or cargo lost or not lost. 100% freight less commission only, is to be paid within 3 banking days after signing and/ or releasing Bills of Lading but in any case before breaking bulk. In case Charterers request for Bills of Lading marked "Freight Prepaid" same to be kept in Agents' custody until freight is being confirmed paid to the Owners and only after instruction in writing from the Owners. CI.36. Master has the right to insert possible remarks to the cargo in Mates Receipt for which Charterers shall issue Letter of Indemnity in Owners' favour in accordance with Owners' P and I wording and shall be signed by Charterers only CI.37. A both ends vessel or its agents have the right to tender Notice of Readiness wipon, wibon, wifpon, wccon. ETA notices to be given to F.H.Bertling GesmBH, Vienna by telex or cable who will pass same Charterers. Loading Notices required: approximate notice on fixing and definite notices 5/3 days 48/24 hours. Discharging Notices required: approximate notice on sailing loading port, followed by 10/7/5/3 days and definite notices 48/24 hours. CI.38. Time to shift from lay-by berth, anchorage, roads to loading/ discharging berth not to count even if the vessel is already on demurrage . CI.39. New Jason Clause, Both -to- Blame Collision Clause, P+I Bunker Deviation Clause and General Paramount Clause are deemed to be fully incorporated and form part of this Charter Party and Bills of Lading issued under this Charter Party. CI.40. Owners confirm and guarantee that vessel is fully complying with all required regulations of the trade and all certificates/ insurances necessary for safe and proper performance of this voyage are valid/ have been arranged. CI. 41 At loading and discharging ports the Owners to appoint their shipping agents to serve the vessel 2 Additional Clauses Charter Party "Gencon 76 m/v …………………………."dated OS February 2002 Owners: ……………………………………………………. Ltd, Cyprus Charterers; …………………………. Ltd, Cyprus CI. 42 Description of the vessel M/V ……………………………… BLT 1980, DWT 5100 MTS AT 3.57 M SSWD, RUSSIAN FLAG GT/NT 4949/2146 LOA/BEAM/DEPTH 138,40/16.5/8.00 M 2/2 HO/HA DIMS OF HO: NR 1. 44.40 X 12.45/13.30 X 8.00 2. 44.40 X 12.45/13.30 X 8.00 FORE PART OF NR 1 HOLD GOES STEEP 19DEG, STARTING 6 METRES FROM THE FORE BULKHEAD. CU CAP 9365 CBM HATCH COVERS PIGGY BACK TYPE DIMS OF HA NR 1. 44.40 X 13.30 2. 44.40 X 13.30 GEARLESS, BOXSHAPED, STEEL FLOORED, B+E AFT EQUIPPED WITH A BOWTHRUSTER AND TWIN SCREW CLASSED MSP ICE 20 BY RUSSIAN RIVER REGISTER OF SHIPPING P+I AND H+M COVERED BY INGOSTSTRAKH MOSCOW TYPE • DRY CARGO All details are deemed to be true and correct but no guarantee could be given. CI.43 Charterers or their representatives have the right to order S.G.S. survey at their time/ cost before starting loading, and Master has to assist the S.G.S. surveyor. Upon completion of loading S.G.S. should perform draft survey at Charterers' cost. Master to assist best possible. Figures found by S.G.S. and Master will be inserted as official weight in each Bill of Lading, but in case the figures are between S.G.S. and Mates Receipts different, the Owners shall not be responsible for the difference in weight figures. One draft survey at the beginning and one at the end at load port only. CI.44 Vessel shall be free of extra insurance. Overage premium if any due to vessel's age to be for Charterers' account. CI.45 Owners to be responsible: for number of bundles loaded, same to be delivered at discharging port; to sign daily Mates Receipt and to state number of bundles in Bills of Lading which are to be conclusive evidence of the quantity of cargo shipped. See also Clause No 43. CI.46 Owners to satisfy themselves with port restrictions both ends. CI.47. In the case the Charterers fail to load and/ or discharge the vessel within the time stipulated in clause 20 the Charterers are to pay demurrage at the rate of USD 2100,- per day pro rata at the ports of loading and discharging. Free dispatch both at the loading and discharging ports. Undisputable demurrage if any is to be paid by the Charterers within 10 (ten) banking days after receipt of well readable fax or scan copies of NOR, SOF and Owners' time sheets, CI.48. Owners to give regularly to Charterers, via booking channel the vessel's complete schedule including ETA/ ETS for each calling port, and keep advised about any changes thereto. 3 ANNEX 8 Tri-partite Settlement Agreement dated 14th June 2002 Amicable Settlement Agreement to Charter Party dated 05 February 2002 Charterers: ………………….., Nicosia, Cyprus Owners: ………………………………………………….Ltd, Cyprus Receivers: ………………………….., Dubai, U.A.E, Istanbul, 14 June 2002 M/v ………………………, which was chartered by ……………………. Cyprus, hereinafter referred as to Charterers, to carry her cargo of steel products from Astrakhan to Bandar Anzali and there deliver it to …………………, Dubai, hereinafter referred as to Receivers, was delayed at the port of discharge and thus gross demurrage of USD 32038.13 incurred. In order to secure the payment of the demurrage the Owners exercised through their agents - Iran Shipping Services lien over the cargo discharged and commenced Arbitration as per the relative clause of the Carter Party. The Receivers from their side commenced legal procedure against our agent Iran Shipping Services for iate delivery of the cargo. In view of the good cooperation between the Charterers and the Owners and in order to avoid any possible complications of this matter it was this day agreed between the Charterers, the Owners and the Receivers that: - - The Charterers shall pay the net amount of USD 26000 (say twenty six thousand US Dollars only) to the bank account of the Owners with value date 17 June 2002. The Owners shall consider the amount paid by the Charterers as stated hereinabove as full and final settlement of the demurrage due. The Receivers shall cease any further procedures against Owners' agent in Iran (Iran Shipping Services) and shall not claim any damages due to the delay of the cargo. All other terms, provisions and conditions of the Charter Party dated 05 February 2002 remain unchanged. For and on behalf of the Charterers: For and on behalf of the Owners: For and on behalf of the Receivers: