Procedure No.: QP07.

FULLY INTEGRATED Issue Date: 04-01-11

QUALITY/HEALTH & SAFETY (OH&S/ISM) Issue Status: 03
AND ENVIRONMENTAL Divisional
POLICY/OBJECTIVES & PROCEDURES MANUAL Authorised by: QHSEM/DPA
Title: SALE AND PURCHASE Page No.: 1 of 3

1.0. PURPOSE

1.1. To ensure that the sale and purchase of vessels to or from third parties,
is effected in a professional and efficient manner and in accordance
with prevailing Rules and Regulations.

2.0. SCOPE

2.1. From the time the vessel is identified as a possible purchase or sale
item until transfer of Ownership.

3.0. RESPONSIBILITY

3.1. With respect to this Procedure, the COO or a person appointed by him
is responsible for arranging the sale and purchase of selected tonnage.

4.0. PROCEDURE

4.1. Selling a Vessel

4.1.1. Whenever the Company receives instructions from Owners or decides

to sell a particular vessel, the COO or Appointed Manager will compile
a description of the vessel and other pertinent details for distribution to
Sale and Purchase Ship Brokers or other interested parties.

4.1.2. The COO or Appointed Manager will arrange for permission to allow
prospective Purchasers to inspect:

1) Vessels Class Records.

2) The vessel.

4.1.3. Upon receipt of an offer to purchase, the COO or Appointed Manager

will if appropriate, seek Owners guidance and approval of any counter
offer. Thereafter, negotiations will ensue until final agreement of main
Terms.

4.1.4. Once all Terms of Sale have been agreed between both parties, the
Ship Broker (or as agreed between the concerned parties) will send (by
fax or telex) each party a re-cap of the negotiations to ensure both
parties have clearly understood the Terms and Conditions of the sale.

4.1.5. Provided the re-cap is acceptable the COO will instruct the
Company’s Lawyers who will be responsible for all documentation and
arrangements through to completion and any subsequent
arrangements.
 Procedure No.: QP07.9

FULLY INTEGRATED Issue Date: 04-01-11

QUALITY/HEALTH & SAFETY (OH&S/ISM) Issue Status: 03
AND ENVIRONMENTAL Divisional
POLICY/OBJECTIVES & PROCEDURES MANUAL Authorised by: QHSEM/DPA
Title: SALE AND PURCHASE Page No.: 2 of 3

4.2. Purchasing a Vessel

4.2.1. Arrangements are made for an inspection of the subject vessel and for
applicable Classification records to be inspected as required.

4.2.2. An offer is drawn up (by either the COO or Appointed Manager or the
Broker).

4.2.3. If the offer is drawn up by the Broker, it will be faxed to the Company
for review. Once the offer is determined as being acceptable the Broker
is given authority to proceed.

4.2.4. Negotiations will ensue until final agreement of main Terms.

4.2.5. Once all Terms of Sale have been agreed between both parties, the
Ship Broker (or as agreed between the concerned parties) will send (by
fax or telex) each party a RE-CAP of the negotiations to ensure both
parties have clearly understood the Terms and Conditions of the sale.

4.2.6. Provided the re-cap is acceptable the COO will instruct the
Company’s Lawyers who will be responsible for all documentation
and arrangements through to completion and any subsequent
arrangements.

4.3. Maintenance of Registry

4.3.1. The General Manager is responsible for processing each vessels

documentation with respect to:

1) Liaising to effect Name and or Ownership changes in

accordance with the requirements of the differing Registries.*
2) Payment of Annual Registry Tonnage Taxes and Fees.*

4.3.2. Panamanian Radio Licences and Certificates of Registry are only valid
for four (4) years. Any necessary renewal will be arranged by the
General Manager.*

* Note: For new vessels entering into service either as new build or
purchased, the Division will be responsible for following the above
procedures.
 Procedure No.: QP07.9

FULLY INTEGRATED Issue Date: 04-01-11

QUALITY/HEALTH & SAFETY (OH&S/ISM) Issue Status: 03
AND ENVIRONMENTAL Divisional
POLICY/OBJECTIVES & PROCEDURES MANUAL Authorised by: QHSEM/DPA
Title: SALE AND PURCHASE Page No.: 3 of 3

4.4. Notification to Managers

4.4.1. All Managers are advised in writing by the COO or Appointed Manager
of:

1) Sale of a vessel:
 Name of vessel.
 Hand over time.
 Hand over date.
 Hand over port.

2) New additions to the fleet with:

 Vessel new name.
 Delivery details: time, date and port.
 New Owners details Company name, address, and
Incorporation date.
 Type.
 Tonnage details.
 Year built.
 Flag.
 Port of Registry.
 Registration Number.
 Call Sign.

5.0. RECORDS

 Re-cap of Main Terms.

 Copy of Correspondence.

6.0. APPENDICES

None.