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ANNEX E GENERAL MATTERS

1 OWNERS' MANAGEMENT REPORTS TO CHARTERERS

In addition to providing the CHARTERERS with exposure hours worked and general safety statistics as
detailed elsewhere in the document, the OWNERS shall be required to submit to the CHARTERERS
monthly reports detailing general performance of the CHARTER PARTY. This report shall include, but
not be limited to the OWNERS consumption of fuel and other consumables provided by the
CHARTERERS. In addition the OWNERS are required to report usage/losses of all CFC's on board the
VESSEL on a monthly basis.

Notwithstanding the above, the OWNERS may be required to submit quarterly and annual reports
detailing the OWNERS' performance of the Contract.

2 CONSUMABLES

In the event that the CHARTERERS request to carry out specific tasks outside the normal duties of the
VESSEL, then consumables such as gases, welding electrodes and other related consumables used by
the OWNERS and/or the CHARTERERS for the performance of these tasks shall be provided free of
charge by the CHARTERERS. In the event that the CHARTERERS require the OWNERS to supply
such material, then the OWNERS shall be reimbursed for the material by the CHARTERERS in
accordance with normal reimbursement arrangements for purchase plus handling commission which
shall not be more than 10% of the cost of such material.

3 MAINTENANCE PHILOSOPHY

3.1 The philosophy is one of preventive maintenance with the aim of eliminating all breakdowns. As such
the OWNERS will be expected to demonstrate he operates a maintenance management system on his
Vessels, and details of his system must be submitted to the CHARTERERS.

The OWNERS are expected to operate a maintenance schedule for all items of ships equipment with
particular emphasis but not limited to the main engines, generators, winches, pumps, safety equipment,
Classification surveys etc. The schedule for each item should as a minimum incorporate the
recommendations of the manufacturers of the individual items of equipment, and compiled in such a
way that the work load is spread as evenly as practical over the year.

A record of all maintenance works should be kept which is comprehensive enough to show not just
compliance with the schedule, to include details of exactly what was done by way of inspection and
tests, what defects were found, and what parts were replaced. On a monthly basis the OWNERS must
report to the CHARTERERS whether or not the maintenance is up to date according to the schedule,
and where slippage has occurred then a plan for rectification must be given.

Whilst it is expected that the OWNERS would generate and maintain a full report of maintenance carried
out on a monthly basis, it is only compliance with the schedule which needs to be reported to the
CHARTERERS, however when the CHARTERERS representative boards the VESSEL then they may
ask for the detailed record that is being kept on board and check for compliance. Failure of the OWNERS
to maintain their VESSEL such that a breakdown occurs which can be directly linked to a lack of proper
care according to the specified schedule shall constitute a fundamental breach of the terms of this
contract, and may result in the termination of the CHARTER PARTYat no cost to the CHARTERERS.

3.2 The OWNERS shall maintain in Brunei Darussalam an adequate stock of spare parts throughout the
period of the CHARTER PARTYwhich shall be replenished as soon as practicable whenever stock is
used, removed from stock for whatever reason, out of service date or has otherwise become unusable
due to age or any other reason. Where for any reason spare parts required for VESSEL performance
are unavailable or delayed reference should be made to Clause 11 Part 2 of the CHARTER PARTY.

3.3 DOCUMENTS TO BE PROVIDED TO CHARTERERS

3.3.1 At the time the VESSEL is taken on hire the OWNERS shall provide the CHARTERERS with one set of
photo copies of the following certified original documents representing the state of the VESSEL.

❖ General Arrangement drawing


❖ Stability booklet covering departure, arrival and intermediate loading conditions

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ANNEX E GENERAL MATTERS

❖ Coloured photos or slide of the VESSELs taken on all four sides in A4 sizes to aid recognition
during emergencies etc.
❖ Safety Plan
❖ Valid certificates and documents related to the Classification and registration of the VESSEL.

3.3.2 The OWNERS shall provide for inspection to the CHARTERERS; originals, (including provisional
certificates) and provide copies of all certificates and other documents relating to the Classification,
Statutory requirements and Registration of the VESSEL at the time that the VESSEL is taken on-hire. If
any certificate or document is not available, then unless there is a valid reason acceptable to the
CHARTERERS, the VESSEL will not be taken on-hire.

3.3.3 All certificates and documents relating to Classification shall be free of conditions imposed by class. If
any certificates or documents are provided which show that conditions have been imposed, then the
VESSEL will not be taken on-hire until such time that the conditions are removed from the certificates
or documents.

4 CREW REQUIREMENTS

4.1 The minimum qualification and experience standards for all crewmembers shall be those set by the
Marine Department of the Government of Negara Brunei Darussalam. In addition, all crewmembers
must comply with the standards and specified in the document issued by the International Maritime
Organisation titled "International Convention on Standards of Training, Certification and Watchkeeping
for Seafarers, 1995" (STCW), including subsequent amendments; always subject to the overriding right
of the CHARTERERS to accept or reject a particular crewmember or crewmembers at their sole
discretion. If the VESSEL is not registered in the country where this applies, proof of qualification for an
equivalent standard must be produced.

4.2 Whilst revalidation based on more or less continuous service in the appropriate rank is sufficient for
most watchkeeping duties this does not apply to some aspects. On that basis renewal of STCW
compliance after 5 years must include refresher training in first aid, fire fighting, survival craft and survival
at sea, and blanket revalidation based on sea service alone is not acceptable.

4.3 Validity and authenticity of Certificates of Master and officers are to be verified with the relevant
Government Authority of the country of origin. Certificates, including certified authentication evidence,
together with a full C.V. are to be submitted to the CHARTERERS for approval. Masters and officers will
also be interviewed and assessed by the CHARTERERS and it shall be the CHARTERERS sole
discretion to accept or reject any particular crewmember. Any costs incurred due to the rejection of a
crewmember shall be for the OWNERS account.

4.4 Return airfare shall be provided by the OWNERS to the country of domicile of each individual
crewmember after completion of the crewmember's tour of duty.

4.5 Training Requirements :


a) At least one officer shall have had recent extensive first aid training in addition to the required
STCW First Aid Training.
b) One crewmember shall be fully experienced in rigging loads for lifting.
c) The marine crew on board the VESSEL shall include provision of one qualified and certified crane
operator, who shall be fully conversant and comply with all requirements of API RP 2D (1985) for
the safe and efficient operation of the crane. The crane operator shall be fully conversant with
all of the CHARTERERS' procedures regarding safety and lifting operations and will have
attended the CHARTERERS training course or equivalent training course acceptable to the
CHARTERERS and have attained the Certificate of Competency.

4.6 All crew shall be aged over 18 years but not over 55 years and be physically, medically, and mentally
capable of performing the duties required under the Charter Party. Medical examinations of each
crewmember shall be conducted once every 12 months and be duly certified as physically and medically
fit.

4.7 The OWNERS responsibility shall be to provide sufficient crew to enable the VESSEL to operate in the
chartered role on a continuous 24 hours basis. No crewmember shall be required to work more than 17
successive hours. There should be a 7 hours continuous rest after each work-shift for the crew or two

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ANNEX E GENERAL MATTERS

periods of a minimum of 4 hours each, during any 24-hour period. The CHARTERERS may request the
OWNERS to provide additional personnel at no cost to the CHARTERERS if operations for which the
VESSEL is chartered are in the opinion of the CHARTERERS carried out inefficiently or not in a timely
manner consistent with the nature of the operations being performed or in contravention of good marine
practice.

4.8 As far as is reasonably possible, consistent with ensuring that the VESSEL is safely operated and
crewed in accordance with marine legislation, the OWNERS shall employ at least one suitably qualified
Brunei citizens or permanent residents for appropriate positions amongst the VESSEL crew at all time.
When so requested the OWNERS shall submit full details of the qualification and experience of crew
personnel.

4.9 The OWNERS shall ensure that appropriate arrangements are made with the Brunei Immigration
Department regarding security for the payment of repatriation costs of all employees who are not Brunei
Citizens or Permanent Residents, to their place of domicile upon termination of this Charter Party.
OWNERS shall ensure that all personnel who are not Brunei Citizens or Permanent Residents:
a) Hold and maintain all necessary certificates of vaccination and inoculation to enable them to enter
and reside in Brunei Darussalam;
b) Hold and maintain valid travel documents, work permits, visas and all other documents necessary
to entitle them to lawfully work in Brunei Darussalam.

4.10 If so required by CHARTERERS, OWNERS personnel must produce medical certificates issued by
medical practitioners acceptable to CHARTERERS and prior to their arrival in Brunei Darussalam,
certifying that they are medically fit to be a seafarer and live and work in Brunei Darussalam.

4.11 All crewmembers must attend the BLNG / BSP HSSE induction. and must hold a valid offshore pass
issued by BSP (Applicable only if on BSP duty). Validity of offshore passes will be determined in
accordance with the validity of the crew member's STCW certificates, as specified in this document.
When applying for a pass, photocopies of the person’s qualification must be provided to allow checks to
be made for compliance with the standards specified in the contract. As soon as clearance is obtained
and the man enters Brunei prior to joining the VESSEL, the original documents must be produced, and
assuming all is satisfactory, a pass will be issued.
Successful completion of Helicopter Underwater Escape Training (HUET) at an accredited training
establishment will be a mandatory requirement for travel offshore on BSP helicopters. Personnel
travelling on an Offshore Visitor Pass will however be limited exempted from this requirement.

4.12 A minimum 24 hour hand-over period is required for all joining senior officers (Master, Chief Engineer,
Chief Officer and Second Engineer) who have either never worked in Brunei waters or have not done
so in the past 12 calendar months.

A minimum 6 hour hand-over period is required for all the other Officers who are not in the above
category. The relieving officers in both cases cannot take over until this hand-over period is completed.

All Officers also must have at least 8 hours continuous rest prior to joining a VESSEL or attending
interviews and/or briefings.

5 MARINE BASE, OFFICE, COMMUNICATIONS AND WAREHOUSING FACILITIES

It is a condition of the Contract that the OWNERS have access to an established marine base in Brunei
Darussalam. In the absence of a marine base of their own, the OWNERS shall make arrangements with
an existing established Marine Operator enabling the OWNERS continued access to such facilities. The
marine base shall comprise an office which shall be equipped with communications facilities, workshop
for maintenance and repairs and a warehouse for the storage of spare parts.

6 MARINE OPERATIONS MANAGER

It is a condition of the CHARTER PARTYthat a Marine Operations Manager shall be based in Brunei
Darussalam for the duration of the Charter Period, who shall be accountable to and liaise directly with
the CHARTERERS regarding all operation related matters of the VESSEL. The Marine Operations
Manager shall have a proven Marine background or a proven managerial experience as Marine
Operations Manager in a marine environment similar to the operation of the VESSEL. Details of the
proposed Marine Operations Manager, including C.V. shall be provided in Section 3 Part A - Technical

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ANNEX E GENERAL MATTERS

Appendices and Annexes, Key Personnel. The Marine Operations Manager will also be interviewed and
assessed by the CHARTERERS and it shall be the CHARTERERS sole discretion to accept or reject
any proposed person. During his leave periods, he shall be substituted by a person of equal quality and
qualifications, subject to acceptance by the CHARTERERS.

7 DIVING SERVICES

At all times, whilst the VESSEL is on charter, all diving for the purpose of inspecting, maintaining and
repairing the underwater parts of the VESSEL, shall be conducted using the diving services of a
CHARTERERS approved Diving company and the diving services shall be in accordance with the
CHARTERERS diving procedures.

The OWNERS will not be permitted to use their own (not appoved) diving resources whilst the VESSEL
is on-hire.

The OWNERS will be charged for diving services, provided by BSP/ BLNG, at the following rates:
a) For inspection of each propeller and/or each propeller shaft or each rudder or each bowthruster,
a rate of B$ 1,000.
b) For inspection, followed with debris clearance of each propeller and/or each propeller shaft or
each rudder or each bowthruster, a rate of B$ 2,500.
c) For each operation for the recovery and/or salvage of each lost anchor, a rate of B$ 5,000.
d) Full charges pro-rata, at the prevailing internal diving tariffing rate, for any other diving service.

8 TRANSPORTATION

(a) the OWNERS shall be responsible for transporting all PERSONNEL and equipment to the place
where WORK are to be performed.

(b) .

9 AMENITIES AND SERVICES INSTALLED BY CHARTERERS

The OWNERS shall not be entitled to use the social amenities and services of the CHARTERERS except
when prior written approval from the CHARTERERS has been obtained.

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