INTERNATIONAL MARITIME LAW ARBITRATION MOOT COMPETITION 2011 MOOT PROBLEM Organised by Murdoch University School of Law Oral

rounds hosted by National University of Singapore

Note (1): Students are to assume that the AMTAC Arbitration Rules are in force for the currency of the problem. Note (2): Students are to assume that all necessary documentation has been provided. Should a document refer to a document(s) which has not been provided students are to assume that the referred document(s) is/are not relevant to the matter. Note (3): Students are to assume that where a Bill of Lading is identified as 'signed 3/3 original Bills of Lading', all three original Bills of Lading are identical to one another. Note (4): Students are to note that the words "FRONT PAGE" AND "REVERSE PAGE" are for guidance only to signify the front and reverse pages of the relevant Bill of Lading. The highlighted words do not form part of the relevant Bill of Lading and are otherwise to be ignored.

Neuland Petroleum Refinery Co. Ltd.

Tender No: 2/2005 Req. No:L.P.G. MIXTURE (53000) MT 25% Tender and Contract Invitation Instructions and General Conditions: Identifications:The Company: Neuland Petroleum Refinery Company Ltd., (Neupetrol). The Director: Director General of the Company. For the supply of:

The following instructions and General Conditions are integral part of the tender invitation, and have the power of the purchase contract. The conditions listed hereunder are binding for tenderers, unless otherwise stated in the tender documents. Offers must be submitted in triplicate in the English language, including the following details before the CLOSING DATE on MONDAY 10/04/2005 at 12.00 HOURS NOON 1. Prices should be:A. B. C. D. 2. 3. 4. 5. 6. Printed or written clearly in figures and capital letters. (currency should be stated in words not in abbreviations). Clearly stated for unit and total price. On the basis of, F.O.B, C.F.R. Makai Port, Valid for (30) days, at least, from closing date unless otherwise stated.

Origin & Delivery: Origin of goods, Delivery period, Delivery place and Port of shipment should be clearly stated. Offers by telex, telegrams and telefax are acceptable provided that detailed offers to follow and to be received as soon as possible (offers by telephone are unacceptable). Offers should not include charges for insurance and Legalization of documents. Name and address of tenderer is to be printed on the envelope in addition to tender number and closing date, different tenders shall be treated separately. Partial awardness should be acceptable by the tenderer, otherwise the Company has the right to disregard the offer.

7. 8. 9. 10. 11.

The Company is not obliged to award on the lowest or any offer. The Company has the absolute right to increase or decrease the required quantities depending on the Company's requirements or to cancel the whole tender without justification. The Company is not bound to consider any offer which does not follow closely tender requirements. Required Certificates are: Laboratory certificate, Third Party Inspection Certificates or as required by tender documents, etc. Should there be any delay in providing the quantity as per the program agreed upon, the company in such case will reserve her right to purchase the required quantity from other sources and reflect the increase on supplier's cost irrespective of price fluctuation, that may then be. In the same time, the company also will reserve her right to claim the liquidated damages caused due to such delay. Additional war risk fees are for seller's account. Successful tenderer should submit within 10 days of awarding of tender, a performance bond, (a bank guarantee or a crossed cheque) equals 10% of the total amount through a local Neuland bank. Tenderer should accept the purchase order based on the submitted offer as an obligatory contract for both parties. Successful tenderer shall not assign the awarded tender (partially or totally) to any other contractor without a prior written permission from the Company. Delivery delay liquidated damages: in the event that supplier failed to supply, materials and/or necessary documents within the specified delivery period. The Company shall be exempted from serving notarial notice/s on the tender. All the documents pertaining to the General Conditions, Specifications, shall form an integral part of the agreement. The Company in cashing the guarantees shall not be deemed to have waived any of its rights under the agreement For tender performance purpose, the local agent and the contractor are jointly severally responsible. The Company has the right to claim its rights legally against each, or both of them, in case they do not comply with any of tender conditions. The Company has the right to refuse acceptance any shipment which is not in conformity with the required specifications, and shall hold the tenderer liable for any damage resulting there from. Payment: by irrevocable, at sight, revolving, non automatic accumulative L/C, and for the opening purposes the revolving quantity to be (8,000) M.T., and will be amended according to the delivery schedule. Partial shipment should be permitted. The supplier should pay 6 per thousand of the contract value to cover revenue stamps according to prevailing Neuland law. The total sum should be paid within 10 ten days after the date of award letter to avoid delay penalty. Unconditioned a bid bond equals 2% of the offer amount valid for 90 days provided & to be issued or confirmed by a local Neuland bank to be submitted with the offer. Tenderers should provide the Company with the name and full address of the Agent or Representative/Regional office in Neuland and his registration number.

12. 13.

14. 15. 16. 17. 18. 19.

20.

21.

22.

23. 24.

25.

Offers should be submitted in two separate closed and sealed envelopes indicating clearly contents of each envelope as follows: The first shall include the technical offer. The second shall include the commercial offer.

26. 27. 28. 29.

Any offer after the above mentionedclosing date will not be accepted. Offers to be signed and stamped otherwise will be disregarded. Disputes and arbitrations to be subject to the laws of Neuland, and place of arbitration to be in Worchester. A representative on behalf of the agent (beneficiary) shall be present at the delivery port and our stores in Makai to witness and measure the unloading of the materials in order to determine any increase or decrease in unloaded quantities and report the discrepancies. Tenderer shall be responsible for the vessel to abide by ISPS CODE system as well as by regulations and requirements of Makai Port.

30.

Neuland Petroleum Refinery Co. Ltd.

TENDER /2/2005 FOR THE SUPPLY OF L.P.G. MIXTURE SPECIAL TENDER CONDITIONS NEULAND PETROLEUM REFINERY CO. LTD. (HEREINAFTER REFERRED TO AS THE COMPANY) INVITES BIDDERS TO PARTICIPATE IN THE ABOVE CAPTIONED TENDER FOR THE SUPPLY OF THE QUANTITY OF (53,000) M.T 25 PCT. MORE OR LESS IN BUYERS' OPTION OF L.P.G MIXTURE (20-25 PCT) PROPANE AND (75-80 PCT) BUTANE (ATTACHED A COPY OF REQUIRED SPECIFICATIONS SHEET). BIDDERS TO SUBMIT THEIR OFFERS ON THE FOLLOWING TERMS, CONDITION AND IN ACCORDANCE WITH THE REQUIRED SPECIFICATIONS:1. PRICE PRICES TO BE SUBMITTED ON THE FOLLOWING BASIS IN BUYER'S OPTION:A. CFR MAKAI PORT, HOWEVER, IN THE EVENT THAT A DIFFERENCE OF MORE THAN 0.5 PCT IS FOUND BETWEEN B/L QUANTITY AND SURVEYOR'S MEASUREMENT REPORT AT PORT OF DISCHARGE (MAKAI), SUCH A DIFFERENCE IS TO BE FOR SELLER'S ACCOUNT. PRICE SHOULD BE TOTALLY AND PARTIALLY ON THE BASIS OF PLATTS L.P. GASWIRE FORMULA UNDER THE HEADING OF POSTINGS / CONTRACTS-FOB CP / BRIT LAND.

B.

2.

DELIVERY AND TERMS OF SHIPMENT:SHIPMENT TO BE EXECUTED ON ONE.OF THE.FOLLOWING BASIS IN BUYER'S OPTION. A. IT IS PREFERABLE THE CAPACITY OF VESSELS IS TO RANGE BETWEEN (3,0005,000) MT, IF VESSELS USED OF MORE OR LESS CAPACITY, TENDERER TO MENTION THE CAPACITY OF THE VESSELS TO BE USED, PROVIDING THAT TENDERER TO FULLFILL THE WEEKLY/MONTHLY REQUIRED QUANTITY AND TO ABIDE WITH MAKAI PORT REGULATIONS. THE FINAL MONTHLY REQUIRED QUANTITY SHALL BE PROVIDED BY THE COMPANY ONE WEEK PRIOR THE FOLLOWING MONTH. FOR ROAD TANKERS, THE DELIVERED QUANTITIES SHOULD BE CPT WAPPING, NEWFARM AND WORCHESTER, PROVIDING THAT, TANKERS BE FIRST DIRECTED TO WAPPING FOR TESTING PURPOSES, THEN BE DIRECTED TO WORCHESTER AND OR NEWFARM FILLING STATIONS. SURVEYOR'S REPORT AT LOADING PORT (MAKAI) IN ALL CASES SHALL BE CONSIDERED BINDING AND FINAL TO BOTH PARTIES AND ANY DISCREPANCY EXCEEDING (%0.5) OF THE RECEIVED MATERIALS SHOULD BE FOR SUPPLIERS ACCOUNT.

B. C.

 3.

THE FINAL WEEKLY / MONTHLY AVERAGE REQUIRED QUANTITY SHALL BE PROVIDED BY THE COMPANY ONE WEEK PRIOR THE FOLLOWING MONTH. DELIVERY PERIOD SHOULD INITIALLY COMMENCE DURING THE BEGINNING OF MAY 2005 - END OF OCT. 2005.

GENERAL CONDITIONS:A. RANDOM SAMPLES WILL BE TAKEN FROM THE VESSEL(S) FOR TESTING, THE COMPANY HAS THE RIGHT TO REJECT ANY QUANTITY THAT IS FOUND DISCORDANT WITH THE AGREED SPECIFICATIONS. VENDORS CAN OFFER FOR THE TOTAL OR PART OF THE REQUIRED QUANTITY. PARTIAL AWARD SHOULD BE ACCEPTABLE BY THE TENDERER, OTHERWISE,THE COMPANY HAS THE RIGHT TO DISREGARD THE OFFER. THE COMPANY WILL NOT BE COMMITTED TO ACCEPT THE LOWEST OFFERED PRICES. THERE SHOULD BE A COMMITMENT TO THE DELIVERY SCHEDULE WITH A POSSIBILITY TO INCREASE OR DECREASE SUPPLY RATES ACCORDING TO THE COMPANY'S REQUIREMENTS. THE LAYTIME ALLOWED FOR UNLOADING THE VESSEL TO BE 24 HOURS/1000 M. TONS, COMMENCING FROM THE TIME OF N.O.R., PLUS (6) HOURS ALLOWED FOR CONNECTING HOSES, MEASURING OF L.P.G. QUANTITY ON THE VESSEL BEFORE DISCHARGING, CALCULATIONS AND DISCONNECTING THE HOSES AFTER DISCHARGING EXCEPT FORCE MAJEURE. N.O.R. IF TENDERED BEFORE 1600 HOURS LOCAL TIME, LAYTIME SHALL COMMENCE IMMEDIATELY UPON ARRIVAL WHILE IF N.O.R. IS TENDERED AFTER 1600 HOURS LOCAL TIME, LAY TIME STARTS TO COUNT AT 0600 HOURS ON THE FOLLOWING DAY. ( i.e. LAYTIME COMMENCES FROM 0600 + 6 HRS). TENDERER TO SPECIFY THE RATE OF DEMMURAGE AND DESPATCH. VESSELS SHOULD BE FULLY EQUIPPED WITH ALL FACILITIES FOR UNLOADING TO SHORESIDE WITH RATES OF ABOUT (200) M. TONS/PER HOUR AT W.P. OF (152 18 KG / CM ) AT DISCHARGE LINE AND WITH TWO RUBBER HOSES OF 10-20 m LONG AND OF 6" SIZE. THE TEMPERATURE OF L.P.G. AT DISCHARGE LINE MUST BE WITHIN THE RANGE OF (+5C TO +10C) PLUS FIVE CENTI GRADE TO PLUS TEN CENTI GRADE. A CLEAR COPY OF CHARTER PARTY AGREEMENT TO BE PROVIDED WITH THE QUOTATION. THE COST OF THIRD PARTY SURVEYOR WILL BE SHARED EQUALLY BETWEEN THE TWO PARTIES:1. AT DISCHARGE PORT (MAKAI)

B. C. D. E.

F.

G.

H. I.

J. K.

2. AT THE LOADING PORT. IT SHOULD BE REDWOOD, SGS, SAYBOLT OR OTHER INTERNATIONAL RECOGNIZED RECOMMENDED SURVEYOR. L. THE FEES OF BERTHING AND ALL OTHER GOVERNMENTAL OR PORTS CORPORATION FEES DUE BY REASON OF DEVIATION OF L.P.G. QUANTITY FROM THE BILL OF LADING, AND THE COST OF THE FIRE TUG BOAT AT MAKAI PORT WILL BE THE RESPONSIBILITY OF THE SELLER.

M. N.

THE TENDERER IS COMPLETELY RESPONSIBLE FOR THE IRREGULARITY OF VESSELS ARRIVAL. IN CASE OF DELAY OF SCHEDULED SHIPMENTS OR VESSELS FOR WHICH A NOTIFCATION HAS BEEN GIVEN, THE SUPPLIER SHOULD BEAR ALL THE CHARGES AND LIQUIDATED DAMAGES AS A RESULT OF THE STOPPAGE OF TANKS AT THE SUM OF (USD 100 PER ROAD TANKER PER DAY) IN ADDITION TO ALL OTHER COSTS AND FEES THAT MAY ARISE THEREOF. SHOULD THERE BE ANY DELAY IN PROVIDING THE QUANTITY AS PER THE PROGRAM GIVEN BY THE COMPANY TO THE SUPPLIER THAT MAY AFFECT THE QUANTITY STORED IN THE COMPANY, THE COMPANY IN SUCH CASE WILL RESERVE HER RIGHT TO PURCHASE THE SHORTAGE FROM OTHER SOURCES AND REFLECT THE INCREASE ON SUPPLIER'S COST IRRESPECTIVE OF PRICE FLUCTUATION, THAT MAY THEN BE. IN THE SAME TIME, THE COMPANY ALSO WILL RESERVE HER RIGHT TO CLAIM THE LIQUIDATED DAMAGES CAUSED DUE TO SUCH DELAY. VESSEL SHALL NOT EXCEEDING (20) YEARS OF AGE, IF EXCEEDING, LLOYDS, ISM ENDORSEMENT & ISPS CERTIFICATES TO BE PRESENTED & OVERAGE INSURANCE TO BE FOR THE SELLER'S ACCOUNT. INVOICING SHALL BE ACCORDING TO B/L QUANTITIES IN AIR.

O.

P.

Q.

SPECIAL REQUIREMENTS TENDERER MUST SUBMIT:1. 2. 3. 4. 5. ALL RELEVANT DOCUMENTS PROVING THEIR FINANCIAL TECHNICAL CAPABILITIES FOR THE SUPPLY OF L.P.G. BY VESSELS AND OR ROAD TANKERS. FURNISH COMPANY WITH ALL PERFORMANCES / CONTRACTS. REFERENCES, LIST OF SIMILAR EXECUTED

SUPPLIER'S ANNUAL REPORT FOR THE PAST THREE YEARS. LIST OF VESSELS OWNED OR HIRED BY THE SUPPLIER (CONTRACTOR) TO FULFILL THE CONTRACT. VESSELS TO ACCOMMODATE SPECIFICATIONS:- DRAFT - L.O.A. - DISPLACEMENT 6.8 m 80-120M 14,000 M.TON THE WOODEN BERTH OF THE FOLLOWING

Neuland Petroleum Refinery Co. Ltd.

NEULAND PETROLEUM REFINERY LABORATORY SPECIFICATION OF LIQUEFIED PETROLEM GAS TESTS Vapor Pressure @ 100 F Residue on evaporation Evaporated temp, 95% Corrosion, Copper strip H2S Sulfur PPMW Kg/cm ml. C
2

RESULTS 8.0 0.05 2.2 No. 1 NIL 140 Max. Max. Max. Max. Max.

METHODS ASTM D - 1267 ASTM D - 2158 ASTM D - 1837 ASTM D - 1838 ASTM D - 2420 ASTM D - 2784 IP - 272

Mercaptans (Expressed as Ethly Mercaptan) PPM Free water content Olefins Content Remarks:Vol%

50-250 Max. None 10 Max.

ASTM D - 2163

Commercial Liquefied Petroleum Gas Consists of 25% WT. Propane and 75% WT. Butane.

(LAB.) CHIEF CHEMIST .

TENTATIVE ESTIMATED SCHEDULE OF SUPLY OF L.P. GAS DURING THE PERIOD OF MAY 2005 - END OF OCT. 2008 (SUBJECT TO FINAL CONFIRMATION)

MONTH

APPROX. MONTHLY REQUIRED QUANTITY 8,000 M.T. 8,000 M.T. 8,000 M.T. 8,000 M.T. 9,000 M.T. 12,000 M.T.

MAY 2005 JUNE 2005 JULY 2005 AUG. 2005 SEP. 2005 OCT. 2005

ANNEX
Offers must be submitted in sealed envelopes on or before the closing date on Monday 10/04/2005 at 12.00 HR Noon. Offers received after that time will be disregarded. Unconditioned A bid bond equals 2% of the offer total amount valid for 90 days must be provided and to be issued or confirmed by a local Neuland bank, Offers without the required bid bond will be disregarded. Local agents must submit with their offer a valid copy of their registration certificate issued by the ministry of industrial and commerce as well as their profession license certificate issued by Greater Worchester Council, enclosed herewith a form to be filled accurately and accordingly. Please abide strictly with the required conditions and specifications.

SUPLIER & LOCAL AGENT INFORMATION

Local Agent Supplier

Name of the General Manager

Tel No:

Fax No:

Mobile:

Profession License Certificate

Trading Registration Certificate

Capital

Bank Reference

Turnover

Owners Equity

FAR EAST MARITIME PETROLEUM TRANSPORT CO

COMMERCIAL OFFER
SUBJECT: TENDER / 2/2005 PUBLISHED BY NEULAND PETROLEUM REFINERY CO LTD FOR THE SUPPLY OF LPG MIXTURE AT MAKAI PORT OF NEULAND

1
INTRODUCTION THIS OFFER IS MADE ON THE DAY 10th APRIL 2005 AT WORCHESTER, NEULAND AND VALID UNTIL 10 MAY 2005 FIRST PARTY NEULAND PETROLEUM REFINERY CO LTD OF NEULAND HEREINAFTER CALL THE "BUYER". SECOND PARTY A JOINT VENTURE BETWEEN: 1. 2. BRIT PETROLEUM FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY "FEMPTC".

HEREINAFTER CALLED THE "SELLER". THE PARTIES HEREBY AGREE AS FOLLOWS: THE SELLER AGREE TO SELL AND DELIVER CFR MAKAI. SEA PORT / NEULAND TO THE BUYER AND THE BUYER AGREE TO PURCHASE, RECEIVE AND PAY FOR LIQUID PETROLEUM GAS (LPG MIXTURE) IN ACCORDANCE WITH THE FOLLOWING TERMS AND CONDITIONS SET FORTH IN THIS OFFER, ADDITIONAL AMENDMENTS, IF ANY, SHALL BE INCORPORATED AS AN ADDENDUM AND SHALL BE DEEMED TO BE AN INTEGRAL PART OF THIS OFFER .

2
QUANTITY / PERIOD / DELIVERY 2.1 SELLER GUARANTEE TO DELIVER AND BUYER GUARANTEE TO RECEIVE LPG MIX CONSISTING OF (20-25 PCT) PROPANE AND (75-80 PCT) BUTANE AS PER ATTACH NEULAND PETROLEUM REFINERY LABORATORY SPECIFICATION OF LIQUEFIED PETROLEUM GAS FOR THE TOTAL QUANTITY MIXTURE OF 53,000 MT WITH 25 PCT MORE OR LESS IN BUYER'S OPTION. PERIOD FOR DELIVERIES DETERMINE BEGINNING OF MAY 2005 UNTIL THE END OF OCTOBER 2005 (SUBJECT FINAL CONFIRMATION BY THE BUYERS). THE APPROXIMATE LPG MIX QUANTITIES REQUIRE SPECIFIED BY THE BUYERS ARE: MAY 2005 8,000 MT

2.2 2.3

10

JUNE 2005 JULY 2005 AUGUST 2005 SEPTEMBER 2005 OCTOBER 2005 2.4

8,000 MT 8,000 MT 8,000 MT 9,000 MT 12,000 MT

IT IS UNDERSTOOD THAT SHUTTLE VESSEL(S) WILL BE AUTHORIZED TO OPERATE AT THE BERTH BASIS OF CONTINOUS 24 HOURS / DAY OPERATION. NOR IF TENDERED BEFORE 16.00 HOURS LOCAL TIME. LAYTIME SHALL COMMENCE IMMEDIATELY UPON ARRIVAL, WHILE IF NOR IS TENDERED AFTER 16.00 HOURS LOCAL TIME, LAYTIME STARTS TO COUNT AT 06.00 HOURS ON THE FOLLOWING DAY BUT IN CASE THAT BUYERS BERTH THE VESSEL DUE TO URGENCY AT ANY TIME ON ARRIVAL AFTER 16 .00 HOURS LOCAL TIME, THEN LAYTIME WILL START TO COUNT AT THE SAME ARRIVAL TIME AS THE ARRIVAL TIME. THE LAYTIME ALLOWED FOR UNLOADING THE VESSEL TO BE 24 HOURS / 1,000 M. TONS MINIMUM AND 24 HOURS / 4,800 M. TONS MAXIMUM, COMMENCING FROM THE TIME OF NOR PLUS (6) HOURS ALLOWED FOR CONNECTING HOSES, MEASURING OF LPG QUANTITY ON THE VESSEL BEFORE DISCHARGING CALCULATIONS AND DISCONNECTING OF THE HOSES AFTER DISCHARGING COMPLETION EXCEPT FORCE MAJEURE. PARCEL SIZE FOR EACH DELIVERY SHALL BE IN THE RANGE BETWEEN 3,000 - 5,000 M.TONS AND ACCORDING TO THE CAPACITY OF THE FOLLOWING VESSELS TO BE USED. ORION GAS BLUE GAS ALPHA STAR ASIAN GLORY TITAN GAS II 7,000 TONS 7,000 TONS 4,750 TONS 3,200 TONS 3,200 TONS

2.5

2.6

2.7

SELLERS GUARANTEE THAT STATED VESSELS IN PARAGRAPH (2.6) ARE EQUIPPED WITH EQUIPMENTS / MACHINERIES FOR UNLOADING TO SHORESIDE WITH RATES OF ABOUT 180 - 200 M. TONS PER HOUR AT W.P. OF (15-18KG / CM2) AT DISCHARGING LINE. THE TEMPERATURE OF LPG AT DISCHARGE LINE WILL BE WITHIN THE RANGE OF (+5C TO 10C) PLUS FIVE CENTI GRADE TO PLUS TEN CENTIGRADE.

3
TYPE/QUANTITY/SURVEYS 3.1 SUBJECT TO BUYER FINAL RECONFIRMATION TO BE GIVEN UPON AWARDING THE SUPPLY CONTRACT THE PRODUCT TO BE DELIVERED SHALL BE AN LPG MIX AS PER TENDER 2/2005 NEULAND PETROLEUM REFINERY CO LTD, MEETING BRIT PETROLEUM SPECIFICATIONS OR SIMILAR. SELLER TO HAVE OPTION TO SUPPLY PRODUCT FROM WORLDWIDE ORIGIN (SUCH AS BUT NOT LIMITED TO, BRIT LAND, DEUTSCHLAND, GREENLAND, FARLAND, SOUTHLAND, EASTLAND, AUSLAND, MIDLAND, ARLAND ETC) EXCLUDING NORTHLAND AND LAPLAND SUPPLIES WITH UNKNOWN GUARANTEE SPECIFICATIONS.

11

3.2

RANDOM SUPPLIES WILL BE TAKE FROM THE VESSEL(S) FOR TESTING, AND THE BUYERS HAVE THE REJECT ANY QUANTITY THAT IS FOUND DISCORDANT WITH THE AGREE SPECIFICATION AS ADDITIONAL AMENDMENTS (ANNEX I). THE COST OF THIRD PARTY SURVEYOR WILL BE FOR LOADING PORT AT SELLERS ACCOUNT AND DISCHARGE PORT FOR BUYERS ACCOUNT. AT LOADING OR DISCHARGE PORT ANY RECOMMENDED SURVEYOR EITHER REDWOOD, SAYBOLT, SGS ETC WILL BE ACCEPTABLE BY THE SELLERS. SURVEYOR'S REPORT IN ALL CASES SHALL BE CONSIDERED BINDING AND FINAL TO BUYERS / SELLERS. THE FINAL MONTHLY AVERAGE REQUIRED BY THE BUYERS QUANTITY SHALL BE PROVIDED TO THE SELLERS TWO WEEKS AT LEAST PRIOR THE FOLLOWING MONTH IN WRITING ALWAYS THROUGH EITHER A FAX, TLX OR E-MAIL EITHER DIRECTLY OF SELLERS OR THROUGH THEIR AGENT.

3.3 3.4 3.5 3.6

4
COMMENCEMENT 4.1 PROVIDED A DECISION MADE NOT LATER THAN 30 APRIL 2005 BY BUYERS, THE SELLERS GUARANTEE MINIMUM DELIVERY OF 8,000 MT LPG MIX DURING MAY 2005.

5
PRICE 5.1 THE PRICE SHALL BE IN US DOLLARS PER METRIC TON BASED ON POSTING / CONTRACTS F.O.B. CP BRIT LAND FOR BUTANE AND / OR PROPANE RESPECTIVELY AS APPLICABLE ON THE MONTH OF LOADING. B/L DATE MUST BE NOT MORE THAN TEN DAYS BEFORE THE DATE OF ARRIVAL TO MAKAI PORT. SELLERS QUOTED HEREBELOW PRICE WHICH HAVE BEEN COMPUTED BASIS ON THE MINIMUM. QUANTITY FOR THE PERIOD (BEGINNING MAY 2005 TO END OCTOBER 2005) OF THE TOTAL IMPORTED QUANTITY OF 53,000 MTS AND WHICH OFFERED PRICE WILL BE BASED ON MESSRS BRIT PETROLEUM (BRIT LAND) MONTHLY (C.P.) PLUS A STANDARD PREMIUM OF US DOLLARS THIRTY THREE POINT ZERO ZERO FOR MAKAI PORT DELIVERY C.I.F. [CP + US$ 33.00 PER MT]. NOTE: THE ABOVE MEANS THAT THE ONLY COST PAYABLE BY NEULAND PETROLEUM REFINERY CO LTD AS BUYERS IS THE COST OF THE PRODUCT AS PUBLISHED MONTHLY BY BRIT LAND (BRIT PETROLEUM), PLUS (+) THE ABOVE PREMIUM OF USD $33 .00 TO COVER ALL LOGISTIC REQUIRED FOR DELIVERY C.I.F.

6
MISCELLANEOUS CLAUSES 6.1 IN THE EVENT THAT A DIFFERENCE OF MORE THAT 0.5 PCT IS FOUND BETWEEN B/L QUANTITY AND SURVEYOR'S MEASUREMENT REPORT AT PORT OF DISCHARGE (MAKAI) SUCH A DIFFERENCE IS TO BE FOR SELLER'S ACCOUNT. THE SELLER COMMITMENTS FOR SUPPLIES INCREASE FROM THE ORIGINAL SPECIFIED MAXIMUM QUANTITY OF 53,000 MT LPG MIX UP TO 25% PERCENT IS PRESENTLY GUARANTEE. IN CASE THAT BUYERS WILLING TO PURCHASE FOR THE PERIOD END MAY 2005 TO END OCTOBER 2005 ANY ADDITIONAL QUANTITY ABOVE

6.2

12

THE 53,000 TONS + - 25% AS ABOVE. SPECIFIED MUST GIVE A REQUIREMENT NOTICE TO SELLERS AT LEAST 30 DAYS IN ADVANCE. PRIOR TO THE FOLLOWING MONTH, OR SUFFICIENT TIME MUTUALLY AGREED FOR EXTRA MONTHLY SUPPLIERS. 6.3.1 IN CASE BUYERS WILL REQUEST A DISCHARGING RATE IN WRITING HIGHER THAN 24 HOURS / 1,000 M.TONS PRIOR TO DISCHARGING COMMENCEMENT OR DURING THE DISCHARGING OPERATION THEN THE TIME GAINED NOT TO BE COUNTED AS DISPATCH STRICTLY. FURTHER SELLERS SPECIFY THE RATE OF DEMURRAGE FOR ALL THEIR VESSEL(S) AS PER PARAGRAPH (2 .6) ABOVE IS $3,900 PER DAY. FURTHER SELLERS SPECIFY THE RATE OF DISPATCH FOR ALL THEIR VESSEL(S) AS PER PARAGRAPH (2.6) ABOVE IS $1,600 PER DAY. DESPATCH AND/OR DEMURRAGE CLAIM, IF ANY, SHALL BE SUBMITTED NOT LATER THAN FIFTEEN (15) DAYS AFTER COMPLETION OF EACH CARGO DISCHARGE OTHERWISE SHALL BE VOID. PORTS CORPORATION FEES DUE BY REASON OF DEVIATION OF LPG QUANTITY FROM THE BILL OF LADING WILL BE THE RESPONSIBILITY OF THE SELLERS. THE SELLER IS RESPONSIBLE FOR ANY IRREGULARITY OF VESSEL(S) ARRIVAL. OUR AGENT / REPRESENTATIVE IN NEULAND ARE BLACK CORP FOR LOGISTICS AND TRADE. P.O. BOX 5210 WORCHESTER - NEULAND. TEL: 227 1892 - FAX: 228 5099.

6.3.2 6.3.3 6.3.4

6.4

6.5

7
PAYMENT 7.1 PAYMENT FOR THE PRODUCT BOUGHT HEREUNDER SHALL BE MADE IN U .S. DOLLARS TO THE SELLER BY REVOLVING LETTER OF CREDIT PAYABLE AT SIGHT FOR EACH QUANTITY DELIVERED AT MAKAI PORT OF NEULAND (PAYMENT WILL BE BASED ON BILL OF LADING QUANTITY). ALL DOCUMENTATION TO BE DISCUSSED AND AGREED.

7.2

8
TITLE AND RISK 8.1 EACH DELIVERY OF PRODUCT SOUGHT UNDER THIS CONTRACT SHALL BE DEEMED COMPLETED AND TITLE SHALL VEST TO THE BUYER, AND THE SELLER'S RESPONSIBILITY SHALL CEASE, WHEN PRODUCT PASSES THE SHIP'S MANIFOLD FLANGE IF CONNECTED TO SHORE DISCHARGING ARM OR SHORE PIPELINE CONNECTION IF CONNECTED BY HOSES, IF, DELIVERED IN THE MAKAI SEA PORT.

9
SAFE BERTH 9.1 BUYER SHALL PROVIDE OR CAUSE TO BE PROVIDED, A SAFE BERTH OR BERTHS WHICH CAN ACCOMMODATE LPG VESSEL(S) NOMINATED AND ACCEPTED WHICH SUCH LPG VESSELS CAN SAFELY REACH, AND WHERE THEY CAN SAFELY LIE, DISCHARGE CARGO, AND LEAVE ALWAYS SAFELY AFLOAT. LPG VESSEL(S) SHALL DISCHARGE AT ANY SAFE PLACE, OR BERTH DESIGNATED BY THE BUYER, AND REACHABLE ON IT'S ARRIVAL.

9.2

13

9.3

BUYER HAS THE RIGHT OF SHIFTING THE LPG VESSEL(S) AT THE PORT OF DISCHARGE FROM ONE SAFE BERTH TO ANOTHER ON PAYMENT OF ALL EXPENSES INCURRED BY REASONS OF SUCH SHIFTING AND USING MORE THAN ONE BERTH. PORT CHARGES, DUES, EXPENSES, AND ANY OTHER CHARGES ON CARGO AND/OR THE DISCHARGING VESSELS AT THE PORT OF DISCHARGING SHALL BE PAID BY THE SELLERS. SELLER GUARANTEES THAT NOMINATED VESSELS COMPLY WITH THE 1969 OR 1992 INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR OIL POLLUTION DAMAGE (C.L.C.) AND THE VESSELS CARRY ONBOARD A CERTIFICATE IN FORM OF THE ANNEXED MODEL IN ARTICLE 7 OF THE C.L.C.

9.4

9.5

10
FORCE MAJEURE 10.1 NEITHER SELLER NOR BUYER SHALL BE LIABLE IN DAMAGES OR OTHERWISE FOR ANY FAILURE OR DELAY IN PERFORMANCE OF ANY OBLIGATION EXCEPT OF THE OBLIGATION TO MAKE PAYMENT WHERE SUCH FAILURE OR DELAY IS CAUSED BY FORCE MAJEURE, BEING ANY EVENT OCCURRENCE OR CIRCUMSTANCE REASONABLY BEYOND THE CONTROL OF THAT PARTY INCLUDING- WITHOUT PREJUDICE TO THE GENERALITY OF THE FOREGOING FAILURE OR DELAY CAUSED BY OR RESULTING FROM ACTS OF GOD, STRIKES, FIRE, FLOODS, WARS (WHETHER DECLARED OR UNDECLARED), RIGHTS DESTRUCTION OF THE OIL, DELAYS OF CARRIERS DUE TO BREAKDOWN OR ADVERSE WEATHER, PERILS OF THE SEA, EMBARGOES, ACCIDENTS, RESTRICTIONS IMPOSED BY ANY GOVERNMENTAL AUTHORITY (INCLUDING ALLOCATIONS, PRIORITIES, REQUISITIONS, QUOTAS AND PRICE CONTROLS).

11
ARBITRATION AND GOVERNING LAW 11.1 ACCEPTING NEULAND LAW. 11.2 BUT IN CASE OF BUYERS AND SELLERS PREFER "ARBITRATION IN NEULAND AND NEULAND LAW TO APPLY" BUYERS AND SELLERS TO DISCUSS FURTHER NEULAND LAW DETAILS THROUGH THEIR LEGAL ADVISORS.

12
VESSELS DESCRIPTION 12.1 FIND ATTACH "C" FORMS OF THE VESSELS LPG ORION GAS, LPG BLUE GAS, LPG ALPHA STAR, LPG ASIAN GLORY AND LPG TITAN GAS II. ON BEHALF OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY "FEMPTC"

14

Neuland Petroleum Refinery Co. Ltd.

Facsimile Transmission Our reference: Date: To: C.C. Subject: Facsimile Number: K/6/3/H/2/2005 13/4/2005 MESSRS: FAR EAST MARITIME TRANSPORTATION CO. PETROLEUM

MESSRS: BLACK FOR LOGISTICS AND TRADE TENDER NO. 2/2005 FOR THE SUPPLY OF L.P.G.

Dear Sirs, With reference to your offer dated 10/4/2005 please confirm the following:1. 2. Price shall be computed on the actual content of propane sc butane in the cargo as measured id by third party inspector Vessels capacity to be (3,000-5,000) M.T. each, end to accommodate the wooden berth of the following specifications:- Draft - L.O.A. 6.8M 80-120M

- Displacement 14,000 M.TON 3. Payment shall be by irrevocable, at sight, revolving, non automatic accumulative L/C. confirmation's charge (if required) to be for sellers account and for the opening purposes the revolving quantity to be (800) M.T., partial shipment allowed, meanwhile the delivery schedule will remain the same. The final monthly required quantity shall be provided by the buyer one week prior to the following month. Any war risk insurance to be for sellers account.

4. 5.

15

6. 7. 8.

Invoicing shall be according to B/L quantities in air. Demurrage and/or dispatch claim, if any, shall tie submitted not later than (60) days. Vessels shall be under (20) years of age, if exceeding, Lloyds, Ism and Isps certificates to be presented & overage insurance to be for sellers account and to be paid for each cargo individually. Disputes and arbitrations shall be subject to the laws of Neuland, the place of arbitrations to be in Makai City. Revenue stamps should be paid (according to Neuland Law) by buyer on sellers behalf, provided that final amount of revenue stamps paid by seller should be according to the total amount of award of total actual amount of invoices whichever is higher. Your full compliance with all tenders general and special conditions. Extend offer validity till 30/4/2005/

9. 10.

11. 12.

Your reply is required at or before 10.00 hours local time, on Saturday April 15th 2005. Best Regards, Paul Gorman Chief Executive Officer

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FAR EAST MARITIME PETROLEUM TRANSPORT CO

Our Reference: Date: To: Subject:

100/NP/2/2005 15/04/2005 Neuland Petroleum Refinery Co. Ltd. Tender No. 2/2005 for the supply of LPG TOTAL NUMBER OF PAGES INCLUDING COVER PAGE: 1

Dear Sirs, With reference to your fax dated 13/4/2005 (Your Ref: K/6/3/H/2/2005) please note our reply as follows: 12345678910Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted

Looking forward for your positive reply Best regards

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FAR EAST MARITIME PETROLEUM TRANSPORT CO

TO: SUBJECT: DATE: OUR REF: FAX NO: Neuland Petroleum Refinery Co. Ltd. Tender No 2/2005 For the supply of LPG 25/04/2005 A5662/NEUPETROL/2/2005
8664127

TOTAL NO . OF PAGES INCLUDING COVER PAGE : 2 Dear Sirs, With reference to your phone conversation with Mr Christian Becker of Brit Petroleum regarding tender No 2/2005 for the supply of LPG, we confirm our acceptance to amend the following clauses in our offer made on 10/04/2005 1Please amend ARTICLE 1 / SECOND PARTY/PARAGRAPH 2 to read the following

THE PARTIES HEREBY AGREE AS FOLLOWS : THE SELLER AGREE TO SELL AND DELIVER C.F.R. MAKAI SEA PORT / NEULAND TO THE BUYER AND THE BUYER AGREE TO PURCHASE, RECEIVE AND PAY FOR THE LIQUID PETROLEUM GAS ( LPG MIXTURE) IN ACCORDANCE WITH THE FOLLOWING TERMSAND CONDITIONS SET FORTH IN THIS OFFER , ADDITIONAL AMENDEMENTS, IF ANY, SHALL BE INCORPORATED AS AN ADDENDUM AND SHALL BE DEEMED TO BE AN INTEGRAL PART OF THIS OFFER . 2Please amend ARTICLE 5/PRICE to read the following

THE PRICE SHALL BE IN US DOLLARS PER METRIC TON BASED ON POSTING / CONTRACTS F.O.B. CP BRIT LAND FOR BUTANE AND / 0R PROPANE RESPECTIVELY AS APPLICABLE ON THE MONTH OF LOADING . B/L DATE MUST BE NOT MORE THAN TEN DAYS BEFORE THE DATE OF ARRIVAL TO MAKAI PORT. SELLERS QUOTED HEREBELOW PRICE WHICH HAVE BEEN COMPUTED BASIS ON THE MINIMUM. QUANTITY FOR THE PERIOD (BEGINNING MAY 2005 TO END OCTOBER 2005) OF THE TOTAL IMPORTED QUANTITY OF 53,000 MTS AND WHICH OFFERED PRICE WILL BE BASED ON MESSRS BRIT PETROLEUM (BRIT LAND) MONTHLY (C.P.) PLUS A STANDARD PREMIUM OF US DOLLARS THIRTY TWO POINT ZERO ZERO FOR MAKAI SEA PORT DELIVERY C.F.R. [CP + US$ 32 .00 PER MT]. Best Regards, Doris Westenberg

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Neuland Petroleum Refinery Co. Ltd.

Neuland Petroleum Refinery Co Ltd Ref: 27/6/TENDER/2/2005

Date: 27/4/2005
LETTER OF AWARD MESSRS: JOINT VENTURE BETWEEN BRIT PETROLEUM AND FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY. BLACK CORPORATION FOR LOGISTICS AND TRADE FAX NO: 2285099 OUR TENDER NO. 2/2005 FOR 53000 + 25% M. Tons LPG YOUR OFFER DTD: 10/4/2005 + CONFIRMATIONS LETTER OF APRIL A5662/NEUPETROL/2/2005 DTD/ 25/4/2005

C/O:

SUBJECT:

Dear Sirs, We would like to inform you that it has been decided to award you the above-mentioned tender to supply us with (53,000 +/- 25%) M. Tons (Buyers option) of LPG mixture (20-255 Propane + 75-80% Butane) with defins content max 10% Vol and sulphur content max 140 PPMW, estimated value is to USD (as per previously) CFR Makai Port (according to Platts LPGASWIRE dated April 2005) as follows:A. Price: Brit Land (C.P.) price for Propane and Butane effective on B/L date, computed on the actual content in the cargo loaded plus (20.00) US Dollar P.M. Tons (Twenty dollars and zero cents) CFR Makai. Supplier to accept supplying an extra quantity of (+25%) over the original awarded quantity (53000 +25%) if required by buyer on the same premium. Delivery to be made during six months as per the attached tentative schedule. Demurrage: USD (2,000) per day max. Lay time (1600) M. Tons per day FHINC commencing from N.O.R. plus (6) hours. (6) Per thousand Revenue stamps, to be paid within ten days on your behalf and to be deducted from L/C value. Final adjustment will be at the end of the contract. You will submit within ten days from the date of receipt of this letter a bank guarantee issued and/or confirmed by a local bank in the sum of US$(1,700,000), it should read as follows: To guarantee that materials will be supplied according to the specifications and conditions of Tender No. (2/2005) and offer confirmations that the whole consignment will be delivered within the specified period. This guarantee must be valid for at least (3) months after receipt of materials at Neuland Petroleum Refinery Company storage tanks subject to extension when

B. C. D. E. F. G.

19

required and payable partially or totally to Neuland Petroleum Refinery Company at first demand.

H. I. J. K.

Copy of B/G text is attached. Upon receipt of the required bank guarantee, we shall deliver to you our formal order and arrange for the respective letter of credit. B/L, date must be not more than ten days before the date of arrival to Makai port. Certificate of quality (laboratory) certificate) from the loading port shall include the total defins content and sulphur content and should be submitted with every shipment. Lay time must be according paragraph P+G in article No. (3) from the tenders general conditions.

Unloading capacity must be according to paragraph (G) of article No. (3) from the tenders general conditions. Arbitration according to Neuland laws. Vessel shall not exceeding (20) years of age, if exceeding, Lloyds, ISM endorsement & ISPS certificates to be presented & overage insurance to be for the sellers account. Vessel must commit with the international ship & port facility security (ISPS) code & Makai port authority regulations.

Best Regards,

Paul Gorman
Chief Executive Officer

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Time Charter Party

ORIGINAL Code word for this Charter Party SHELLTIME 4 Issued December 1984

Time Charter Party

LONDON, 10th January 2005

IT IS THIS DAY AGREED between BLUE SKY HOLDINGS INC. of Panama (hereinafter referred to as Owners), being owners of the good Panama Flag vessel called Alpha Star (hereinafter referred to as the vessel) described as per Clause 1 hereof, and FAR EASTMARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) Of Gutland (hereinafter referred to as Charterers)

1.

Description and Condition of the Vessel

1.

At the date of delivery of the vessel under this charter (a) she shall be classed Nippon Kaijl Kyokai (b) she shall be in every way fit to carry crude petroleum or its products; or store 1-2 grades fully refrigerated LPG (butane & Propane), always within vessel natural segregation.

(c) she shall be tight, staunch, strong, in good order and condition, and in every way fit for the service, with her machinery, boilers, hull and other equipment (including, but not limited to hull stress calculator and radar) in a good and efficient state (d) her tanks, valves and pipelines shall be gas oil tight (e) she shall be in every way fitted for burning For M/E Fuel Oil 180 CST ISO 8217/RME 25 & For D/G Marine Diesel OIL ISO 8217 / DMB (f) she shall comply with the regulations in force so as to enable her to pass through the Suez and Panama Canals by day and night without delay (g) she shall have on board all certificates, documents and equipment required from time to time by any applicable law to enable her to perform the charter service without delay (h) she shall comply with the description in Form B C appended hereto, provided however that if there is any conflict between the provisions of Form B C and any other provision, including this Clause 1 of this charter, such other provision shall govern.

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2.

Shipboard Personnel and their Duties

2. (a) At the date of delivery of the vessel under this charter (i) she shall have a full and efficient complement of master, officers and crew for a vessel of her tonnage, who shall in any event be not less than the number required by the laws of the flag state and who shall be trained to operate the vessel and her equipment competently and safely (ii) all shipboard personnel shall hold valid certificates of competence in accordance with the requirements of the law of the flag state (iii) all shipboard personnel shall be trained in accordance with the relevant provisions of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1995 (iv) there shall be on board sufficient personnel with a good working knowledge of the English language to enable cargo operations at loading and discharging places to be carried out efficiently and safely and to enable communications between the vessel and those loading the vessel or accepting discharge therefrom to be carried out quickly and efficiently (b) Owners guarantee that throughout the charter service the master shall with the vessels officers and crew, unless otherwise ordered by Charterers (i) prosecute all voyages with the utmost despatch (ii) render all customary assistance; and (iii) load and discharge cargo as rapidly as possible when required by Charterers or their agents to do so, by night or day, but always in accordance with the laws of the place of loading or discharging (as the case may be) and in each case, in accordance with any applicable laws of the flag state 3. Duty to Maintain

3. (i) Throughout the charter service Owners shall, whenever the passage of time, wear and tear or any event (whether or not coming within Clause 27 hereof) requires steps to be taken to maintain or restore the conditions stipulated in Clauses 1 and 2(a) exercise due diligence so to maintain or restore the vessel (ii) If at any time whilst the vessel is on hire under this charter the vessels fails to comply with the requirements of Clauses 1, 2(a) or 10 then hire shall be reduced to the extent necessary to indemnify Charterers for such failure. If and to the extent that such failure affects the time taken by the vessel to perform any services under this charter, hire shall be reduced by an amount equal to the value, calculated at the rate of hire, of the time so lost. Any reduction of hire under this sub-Clause (ii) shall be without prejudice to any other remedy available to Charterers, but where such reduction of hire is in respect of time lost, such time shall be excluded from any calculation under Clause 24 (iii) If Owners are in breach of their obligation under Clause 3(1), Charterers may so notify Owners in writing and if, after the expiry of 30 days following the receipt by Owners of any such notice, Owners have failed to demonstrate to Charterers reasonable satisfaction the exercise of due diligence as required in clause 3(i) the vessel shall be off-hire and no further hire payments shall be due, until Owners have so demonstrated that they are exercising such due diligence. Furthermore, at any time while the vessel is off-hire under this Clause 3 Charterers have the option to terminate his charter by giving notice in writing with effect from the date on which such notice of termination is received by Owners or from any later date stated in such notice. This sub-Clause (iii) is without prejudice to any rights of charterers of obligations of Owners under this charter or otherwise

22

(including without limitation Charterers rights under Clause 21 hereof). 4. Period Trading

4. Owners agree to let and Charterers agree to hire the vessel for a period of minimum 12 months +/- 15 days to be declared no later than 30 Days prior to the anniversary of 24 months period. The rate beyond the initial 17 months to be mutually agreed between Charterers and owners. Limits Commencing from the time and date of delivery of the vessel, for the purposes of carrying all lawful merchandise (subject always to Clause 28) including in particular: 1-2 grades fully refrigerated LPG always within vessels natural segregation for international trading excluding U.S.A. and any port(s) where international sanctions are implemented in any part of the world, as Charterers shall direct, subject to the limits of the current British Institute Warranties and any subsequent amendments thereof. Notwithstanding the foregoing, but subject to Clause 25, Charterers may order the vessel to ice-bound waters or to any part of the world outside such limits provided that Owners consent thereto (such consent not to be unreasonably withheld) and the Charterers pay for any insurance premium required by the vessels underwriters as a consequence of such order. Charterers shall use due diligence to ensure that the vessel is only employed between and at safe places (which expression when used in this charter shall include ports, berths, wharves, docks, anchorages submarine lines, alongside vessels or lighters and other locations including locations at sea) where she can safely lie always afloat. Notwithstanding anything contained in this or any other clause or this charter, Charterers do not warrant the safety of any place to which they order the vessel and shall be under no liability in respect thereof except for loss or damage caused by their failure to exercise due diligence as aforesaid. Subject as above, the vessel shall be loaded or discharged at any places as Charters may direct, provided that Charterers shall exercise due diligence to ensure that any ship-to-ship transfer operation shall conform to standards not less than those set out in the latest published edition of the ICS/OCIMF Ship-to Ship Transfer Guide. The Vessel shall be delivered by Owners at Off Port Limits STS Area, Zeeland. and redelivered to owners at Off Port Limits Zeeland STS Area and/.or Mala, Nicosia., with Charterers option to redeliver dropping outward sea pilot at last discharge port with Charterers paying Owners and the ballast bonus to Off Port Limits Zeeland STS Area and/.or Mala calculated at C/P speed and bunkers consumption. Charterers to declare whether they will deliver at Off Port Limits Zeeland STS Area, Mala or last disport not later than 60 days prior to end of the time charter period. 5. Laydays / Cancelling

5. The vessel shall be delivered to Charterers on 1 March 2005 at 00:01 GMT to direct continuation of current Time Charter. 6. Owners to Provide

6. Owners undertake to provide and pay for all provisions, wages and shipping and discharging fees and all other expenses of the master, officers and crew, also, except as provided to Clauses 4 and 34 hereof, for all insurance on the vessel, for all deck, cabin and engine room stores, and for water for all drydocking, overhaul, maintenance and repairs for the vessel; and for all expenses and de-ratification certificates. Owners obligations under this Clause 6 extend to all liabilities for customs or import duties arising at any time during the performance of this charter in relation to the personal effects of the master, officers, and crew, and in relation to the

23

stores, provisions and other matters aforesaid which Owners are to provide and pay for, and Owners shall refund to Charterers any sums Charterers or their agents may have paid or been compelled to pay in respect of any such liability. Any amount allowable in general average for wages and provisions or stores shall be credited to Charterers insofar as such amounts are in respect of a period when the vessel is on hire. 7. Charterers to Provide

7. Charterers shall provide and pay for all fuel and fresh water in case of using the vessel as shuttle vessel (except fuel used for domestic services), towage and pilotage and shall pay agency fees, port charges, commissions, expenses of loading and unloading cargoes, canal ones and charges other than those payable by Owners in accordance with Clause 6 hereof, provided that all charges for the said items shall be Owners (account when such items are consumed, employed or incurred for Owners purposes or while the vessel is off hire (unless such times reasonably relate to any service given or distance made good and taken into account under Clause 21 or 22), and provided further that any fuel used in connection with a general average sacrifice or expenditure shall be paid for by Owners. 8. Rate of Hire

8. Subject herein provided, Charterers shall pay for the use and hire of the vessel at the rate of US$285,000,000 Per Calendar Month including Overtime but excluding communication costs, payable monthly in advance per day, and pro rata for any part of the day, from the time and date of her delivery (local time) until the time and date of her redelivery (local time) to Owners. In addition Charters to pay lump sum US$750.00 fixed cost for communications however and in case that the vessel will be Sub-Chartered then any additional charges will be paid to Owners on presentation of Owners invoices supported by the invoices issued by Communication Companies. 9. Payment of Hire

9. Subject to Clause 3(iii), payment of hire shall be made in immediately available funds to Owners nominated account as per Owners hire invoice instructions Account. In U.S. Dollars per calendar month in advance, less: (i) any hire paid which Charterers reasonably estimate to relate to off-hire periods; and (ii)any amounts disbursed on Owners behalf any advances and commission thereon and charges which are for Owners account pursuant to any provisions hereof; and(iii) any amounts due or reasonably estimated to become due to Charterers under Clause (ii) or 24 hereof, any such adjustments to be made at the due date for the next monthly payment after the facts have been ascertained. Charterers shall not be responsible for any delay or error by Owners bank in crediting Owners account provided that Charterers have made proper and timely payment. In default of such proper and timely payment. (a) Owners shall notify Charterers of such default and Charterers shall within seven days of receipt of such notice pay to Owners the amount due including interest, failing which Owners may withdraw the vessel from the service of Charterers without prejudie to any other rights Owners may have under this charter or otherwise; and

24

(b) Interest of any amount due but not paid on the due date shall accrue from the day after that date up to and including the day when payment is made, at a rate per annum which hall be 1% above the U.S. Prime Interest Rate as published by the Chase Manhattan Bank in New York at 12.000 new York time on the due date, or, if no such interest rates is published on that day, the interest rate published on the next preceeding day on which such a rate was so published, computed on the basis of a 360 day year of twelve 30-day months, compounded semi-annually.

12.

Instructions and Logs

Charterers shall from time to time give the master all requisite instructions and sailing directions, and he shall keep a full and correct log of the voyage and voyages, which Charterers or their agents may inspect as required. The master shall when required, furnish Charterers of their agents with a true copy of such log and with properly completed loading and discharge port sheets and voyage reports for each voyage and other returns as Charterers may require. Charterers shall be entitled to take copies at Owners expense of any such documents which are not provided by the master.

13. Bills of Lading (a) The master (although appointed by Owners) shall be under the orders and direction of the Charterers as regards employment of the vessel, agency and other arrangements, and shall sign bills of lading as Charterers or their agents may direct (subject always to clauses 35(a) and 40) without prejudice to this charter. Charterers hereby indemnify Owners against all consequences that may arise: i. from signing bills of lading in accordance with the directions of Charterers or their agents, to the extent that the terms of such bills of lading fail to conform to the requirements of this charter, or (except as provided in clause 13(b) from the master otherwise complying with Charterers or their agents orders; ii. from any irregularities in papers supplied by Charterers or their agents.

(b) Notwithstanding the foregoing, Owners shall not be obliged to comply with any orders from Charterers to discharge all or part of the Cargo: i. ii. at any place other than that shown on the bill of lading and/or without presentation of an original bill of lading

unless they have received from Charterers both written confirmation of such orders and an indemnity in a form acceptable to Owners. 14. Conduct of Vessels Personnel

25

If Charterers complain of the conduct of the master or any of the officers or crew, Owners shall immediately investigate the complaint. If the complaint proves to be well founded, Owners shall, without delay, make change in the appointments and Owners shall in any event communicate the result of their investigations to Charterers as soon as possible. 15. Bunkers at Delivery and Redelivery Vessel to be delivered and redelivered with bunkers for at least 12 days navigation. Charterers will purchase any bunkers remaining on board on delivery from Owners and Owners will purchase any bunkers remaining on board on redelivery from charters at the prices as per last supplied on each occasion. 16. Stevedores, Pilots, Tugs Stevedores, when required, shall be employed and paid by Charterers, but this shall not relieve Owners from responsibility at all time for proper stowage, which must be controlled by the master who shall keep a strict account of all cargo loaded and discharged. Owners hereby indemnify Charterers, their servants and agents against all losses, stevedores who although employed by Charterers shall be deemed to be the servants of and in the service of Owners and under their instructions (even if such pilots, tugboat personnel or stevedores are in fact the servants of Charterers, their agents or any affiliated company), provided however, that: i. the foregoing indemnity shall not exceed the amount to which Owners would have been entitled to limit their liability if they had themselves employed such pilots, tugboats or stevedores; and ii. Charterers shall be liable for any damage to the vessel caused by or arising out of the use of stevedores, fair wear and tear excepted, to the extent that Owners are unable by the exercise of due diligence to obtain redress therefore from stevedores. 17. Supernumeraries Charterers may send representatives in the vessels available accommodation upon any voyage made under this charter, Owners finding provisions and all requisite as supplied to officers, except liquors, Charterers paying at the rate of US$15.00 per day for each representative while on board the vessel provided P&I Clubs Letter of Waiver is signed by Charterers representatives. 18. Sub-letting Charterers may sub-let the vessel, but shall always remain responsible to Owners for due fulfilment of this charter. 19. Final Voyage If when payment of hire is due hereunder, Charterers reasonably expect to redeliver the vessel before next payment of hire would fall due, the hire to be paid shall be assessed on Charterers reasonable estimate of the time necessary to complete Charterers programme up to redelivery, and from which estimate Charterers may deduct amounts due or reasonably expected become due for:

26

i.

Disbursements on Owners behalf or charges for Owners account pursuant to any provision hereof; and

ii.

Bunkers on board at redelivery pursuant to Clause 15.

If at any time this charter would otherwise terminate in accordance with Clause 4, the vessel is on a ballast voyage to a port of redelivery or is upon a laden voyage, Charterers shall continue to have the use of the vessel at the same rate and conditions as stand herein for as long as necessary to complete such ballast voyage, or to complete such laden voyage and return to a port of redelivery as provided by this charter as the case may be. 20. Loss of Vessel Should the vessel be lost, this charter shall terminate and hire shall cease at noon on the day of her loss should the vessel be a constructive total loss, this charter shall terminate and hire shall cease at noon on the day on which the vessels underwriters agree that the vessel is a constructive total loss; should the vessel be missing, this charter shall terminate and hire shall cease at noon on the day on which she was last hear of. Any hire paid in advance and not earned shall be returned to Charterers and Owners shall reimburse Charters for the value of the estimated quantity of bankers on board at the time of termination, at the price paid by Charterers at the last bunkering port. 21. Off-hire (a) On each and every occasion that there is loss of time (whether by way of interruption to vessels service or, from reduction the vessels performance, of in any other manner): i. due to deficiency of personnel or stores, repairs, gas-freeing for repairs, time in waiting to enter dry dock for repair, breakdown (whether partial or total) of machinery, boilers or other parts of the vessel or her equipment (including without limitation tank coatings); overhaul maintenance or survey, collision, stranding, accident or damage to the vessel, or any other similar cause preventing the efficient working of the vessel; and such loss continues for more than three consecutive hours (if resulting from interruption in the vessels service) or cumulates to more than three hours if resulting from partial loss of service); or ii. due to industrial action, refusal to sail, breach of orders or neglect of duty on the part of the master officers or crew; or iii. for the purposes of obtaining medical advice or treatment for or landing any sick or injured person (other than a Charterers representative carried under Clause 17 hereof) or for the purpose of landing the body of any person (other than a Charterers representative), and such loss continues for more than three consecutive hours; or iv. due to any delay in quarantine arising from the master, officers or crew having had communication with the above at any infected area without the written consent or instructions of Charterers or their agents, or to any detention by customs or other

27

authorities caused by smuggling or other infraction of local law on the part of the master, officers, or crew; or v. due to detention of the vessel by authorities at home or abroad attributable to legal action against or breach of regulations by the vessel the vessels owners, or Owners (unless brought about by the act or neglect of Charterers); then without prejudice to Charterers rights under Clause 3 or to any other rights of Charterers hereunder or otherwise the vessel shall be off-hire from the commencement of such loss of time until she is again ready and in an efficient state to resume her service from a position not less favourable to Charterers than that at which such loss of time commenced, provided, however, that any service given or distance made good by the vessel whilst off hire shall be taken into account in assessing the amount to be deducted from hire. (b) If the vessel fails to proceed at any guaranteed speed pursuant to Clause 24, and such failure arises wholly or partly from any of the causes set out in Clause 21(a) above, then the period for which the vessel shall be off-hire under this Clause 21 shall be the difference between: i. the time the vessel would have required to perform the relevant service of such guaranteed speed; and ii. the time actually taken to perform such service (including loss to time arising from the interruption in the performance of such service). (c) Further and without prejudice to the foregoing, in the event of the vessel deviating (which expression includes without limitation putting back, or putting into any port other than that to which she is bound under the instructions of the Charterers) for any cause or purpose mentioned in Clause 21(a), the vessel shall be off-hire from the commencement of such deviation until the time when she is again ready and in an efficient state to resume her service from a position not less favourable to Charterers than that at which the deviation commenced, provided, however, that any service given or distance made good by the vessel whilst so off-hire shall be taken into account in assessing the amount to be deducted from hire. If the vessel, for any cause or purpose mentioned in Clause 21(a) puts into any port other than the port to which she is bound on instructions of the Charterer, the port charges, pilotage and other expenses at such port, shall be borne by Owners. Should the vessel be driven into any port or anchorage by stress of weather, hire shall continue to be due and payable during any time lost thereby. (d) If the vessels flag state becomes engaged in hostilities, and Charterers in consequences of such hostilities find it commercially impracticable to employ the vessel and have given Owners written notice thereof then from the date of receipt by Owners of such notice until the termination of such commercial impracticability the vessel shall be off-hire and Owners shall have the right to employ the vessel on their own account.

28

(e) Time during the vessel is off-hire under this charter shall count as part of the charter period. 22. Periodical In the case of emergency Owners have the right and the obligation to drydock the vessel. 23. Ship Inspection 1.1 Charterers shall have the right at any time during the charter period to make such inspection of the vessel as they consider necessary. This right may be exercised as often and at such intervals as Charterers in their absolute discretion may determine, and whether the vessel is in port or on passage. Owners affording all necessary co-operation and accommodation on board provided however: (a) that neither the exercise nor the non-exercise, nor anything done or not done in the exercise or non-exercise, by charterers of such right, shall in any way reduce the masters or Owners authority over, or responsibility to Charterers or third parties for, the vessel and every aspect of her operation, nor increase Charterers responsibilities to Owners or third parties for the same; and (b) that Charterers shall not be liable for any act, neglect or dealt by themselves, their servants or agents in the exercise or non-exercise of the aforesaid right. 24. Detailed Description and Performance (a) Owners guarantee that the speed and consumption of the vessel shall be as follows: Average speed: Maximum average bunker consumption

Average speed under weather conditions up to 4 Beaufort scale Laden: Ballast: 13.00 knots 13.50 knots For M/E IFO 180 CST 8217/RME 25 For D/G Diesel Oil ISO 8217/DMB Consumptions (Daily/MT)/ (AB about): Main Engine at Sea - Laden/Ballast: 15/14 D/G Average under various conditions: 2.50 (Excluding manoeuvring) The foregoing bunker consumptions are for all purposes except cargo heating and tank cleaning and shall be pro-rated between the speeds show.

Grade of Bunkers:

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The service speed of the vessel is 13.0 knots laden and 13.5 knots in ballast, and in the absence of Charterers orders to the contrary, the vessel shall proceed at the service speed. However if more than one laden and one ballast speed are shown in the table above, Charterers, shall have the right to order the vessel to steam at any speed within the range set out in the table (the ordered speed). If the vessel is ordered to proceed at any speed other than the highest speed shown in the table, and the average speed actually attained by the vessel during the currency of such order exceeds such ordered speed plus 0.5 knots (the maximum recognised speed), then for the purpose of calculating any increase or decrease of hire under this Clause 24, the maximum recognised speed shall be used in place of the average speed actually attained. For the purposes of this charter, the guaranteed speed at any time shall be the then current ordered speed or the service speed, as the case may be. The average speeds and bunker consumption shall for the purposes of this Clause 24 be calculated by reference to the observed distance from pilot station to pilot station on all sea passage during each period stipulated in Clause 24(c), but excluding any time during which the vessel is (or but for Clause 22(b)(i) would be) off-hire and also excluding Adverse Weather periods, being (i) any periods during which reduction of speed is necessary for safety congested waters or in poor visibility (ii) any days, noon to noon, when winds exceed force 8 on the Beaufort Scale for more than 12 hours. (b) If during any year from the date on which the vessel enters service (anniversary to anniversary) the vessel falls below or exceeds the performance guaranteed in Clause 24(a), then if such shortfall or excess results: i. from a reduction or an increase in the average speed of the vessel, compared to the speed guaranteed in Clause 24(a), then an amount equal to the value at the hire rate of the time so lost or gained, as the case may be, shall be deducted from or added to the hire paid. ii. from an increase or a decrease in the total bunkers consumed, compared to the total bunkers which would have been consumed had the vessel performed as guaranteed in clause 24(a) an amount equivalent to the value of the additional bunkers consumed or the bunkers saved, as the case maybe, based on the average price paid by Charterers for the vessels bunkers in such period shall be deducted from or added to the hire paid. The addition or deduction from hire so calculated for laden and ballast mileage respectively shall be adjusted to take into account the mileage steamed in each such condition during Adverse Weather Periods in order to establish the total addition to or deduction from hire to be made for such period.

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Reduction of hire under the foregoing sub-Clause (b) shall be without prejudice to any other remedy available to Charterer. (c) Calculations under this Clause 24 shall be made for the yearly periods terminating on each successive anniversary of the date on which the vessel enters service, and for the period between the last such anniversary and the date of termination of this charter if less than a year. Claims in respect of reduction of hire arising under this clause during the final year or part year of the charter period shall in the first instance be settled in accordance with Charterers estimate made two months before the end of the charter period. Any necessary adjustment after this charter terminates shall be made by payment by Owners to Charterers or by Charterers to Owners as the case may be. Payments in respect of increase of hire arising under this Clause shall be made promptly after receipt by Charterers of all the information necessary to calculate such increase. 25. Salvage Subject to the provisions of Clause 21 hereof, all loss of time and all expenses (including any damage to or loss of the vessel or tortuous liabilities to third parties) incurred in saving or attempting to save life or in successful of unsuccessful attempts at salvage shall be borne equally by Owners and Charterers provided that Charterers shall not be liable to contribute towards any salvage payable by Owners arising in any way out of services rendered under this Clause 25. All salvage and all proceeds from derelicts shall be divided equally between Owners and Charterers after deducting the masters officers and crews share. 26. Law Owners shall have a lien upon all cargoes and all freights, sub-freights, and demurrage for any amounts due under this charter, and Charterers shall have a lien on the vessel for all monies paid in advance and not carried, and for all claims for damages arising from any breach by Owners of this charter. 27. Exceptions (a) The vessel, her master and Owners shall not, unless otherwise in this charter expressly provided, be liable for any loss or damage or delay or failure arising from any act, neglect or default of this matter, pilots, mariners or other servants of the Owners in the navigation or management of the vessel, fire, unless caused by the actual fault or privity of Owners, collision or stranding, dangers and accidents of the sea, explosion, bursting of boilers, breakage of shafts or any latent defect in hull, equipment or machinery, provided however that clause 1, 2, 3 and 24 hereof shall be unaffected by the foregoing. Further, neither the vessel, her master or Owners, nor Charterers shall, unless otherwise in this charter expressly provided, be liable for any loss or damage or delay or failure in performance hereunder arising or resulting from act of God, act of war, seizure under legal process, quarantine restrictions, strikes, lock-outs, riots, restraints of labour, civil commotions or arrest or restraint of princes, rulers or people.

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(b) The vessel shall have liberty to sail with or without pilots, to tow or go to the assistance of vessels in distress and to deviate for the purposes of saving life or property. (c) Clause 27(a) shall not apply to or affect any liability of Owners or the vessel or any other relevant person in respect of: i. loss or damage caused to any berth, jetty, dock or dolphin, buoy, mooring line, pipe or crane or other works or equipment whatsoever at or near any place to which the vessel may proceed under this charter, whether or not such works belong to Charterers or ii. any claim (whether brought by Charterers or any other person) arising out of any loss or of damage to or in connection with cargo. All such claims shall be subject to the Hague Visby Rules or the Hague Rules, as the case may be, which ought pursuant to clause 38 hereof to have been incorporated in the relevant bill of lading (whether or not such Rules were incorporated) or, if no such bill of lading is issued, to the Hague-Visby Rules. (d) In particular and without limitation, the foregoing subsections 1.1iand 1.1ii of this Clause shall not apply to or in any way affect any provision in this charter relating to off-hire or to reduction of hire. 28. Injurious Cargoes No acids, explosives or cargoes injurious to the vessel shall be shipped and without prejudice to the foregoing any damage to the vessel caused by the shipment of any such cargo, and the time taken to repair such damage, shall be for Charterers account. No voyage shall be undertaken, nor any goods or cargoes loaded, that would expose the vessel to capture or seizure by rulers or governments. 29. Grade of Bunkers Charterers shall supply marine diesel oil/fuel oil (see line 13) for the auxiliaries. If Owners require the vessel to be supplied with more expensive bunkers, they shall be liable for extra cost thereof. Charterers warrant that all bunkers provided by them in accordance herewith shall be of a quality complying with the International Marine Bunker Supply Terms and Conditions of Shell International Trading Company and with its specification for marine fuels as amended from time to time. 30. Disbursements Should the master require advances for ordinary disbursements at any port, Charterers or their agents shall make such advances to him, in consideration of which, Owners shall pay a commission of two and a half per cent., and if such advances and commission shall be deducted from hire. 31. Laying-up Charterers shall have the option, after consultation with Owners, of requiring Owners to lay up the vessel at a safe place nominated by Charterers, in which case the hire provided for under this charter shall be adjusted to reflect any net increases in expenditure reasonably incurred or any net saving which should reasonably be made by Owners as a result of such lay-up. Charterers may exercise the said option any number of times during the charter period.

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32. Requisition Should the vessel be requisitioned by any government, de factor or de jure, during the period of this charter, the vessel shall be off-hire during the period of such requisition, and any hire paid by such government in respect of such requisition period shall be for Owners account. Any such requisition period shall count as part of the charter period. 33. Outbreak of War If war or hostilities break out between any two or more of the following countries, U.S.A., U.S.S.R., P.R.C., U.K., NETHERLANDS, U.A.E., NEULAND, SAUDI ARABIA, KUWAIT, IRAN, IRAQ, OMAN, TAIWAN both Owners and Charterers shall have the right to cancel this charter. 34. Additional War Expenses If the vessel is ordered to trade in areas where there is war (de factor or de jure) or threat of war, Charterers shall reimburse Owners for any additional insurance premium, crew bonuses and other expenses which are reasonably incurred by Owners as a consequence of such orders, provided that Charterers are given notice of such expenses as soon as practicable and in any event before such expenses are incurred and provided further that Owners obtain from their insurers a waiver of any subrogated rights against Charterers in respect of any claims by Owners under their war risk insurance arising out of compliance with such orders. 35. War Risks (a) The master shall not be required or bound to sign bills of lading for any place which by his or Owners reasonable opinion is dangerous or impossible for the vessel to enter or reach owing to any blockade, war, hostilities, warlike operations, civil war, civil commotions or revolutions. (b) If in the reasonable opinion of the master or Owners it becomes, for any of the reasons set out in clause 0 or by the operation of international law, dangerous, impossible or prohibited for the vessel to reach or enter or to load or discharge cargo at any place to which the vessel has been ordered pursuant to this charter (a place of peril) then Charterers or their agents shall be immediately notified by telex or radio messages and Charterers shall thereupon have the right to order the cargo, or such part of it as may be affected to be loaded or discharged as the case may be, at any other place within the trading limits of this charter (provided such other place is not itself a place of peril). If any place of discharge is or becomes a place of peril, and no orders have been received from Charterers or their agents within 48 hours after dispatch of such messages, then Owners shall be at liberty to discharge the cargo or such part of it as may be affected at any place which they or master may in their or his discretion select within the trading limits of this charter and such discharge shall be deemed to be due fulfilment of Owners obligations under this charter so far as cargo so discharged is concerned. (c) The vessel shall have liberty to comply with any directions or recommendations as to departure, arrival, routes, ports of call, stoppages, destinations, zones, waters, delivery or in any other wise whatsoever given by the government of the state under whose flag the vessel sails, or any other government or local authority or by any person or body acting or purporting to act as or with the authority of any such government or local authority including any de facto government or local authority or by any person or body acting or purporting to act as or with the authority of any

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such government or local authority 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 recommendation. If by reason of or in compliance with any such directions or recommendations anything is done or is not done, such shall not be deemed a deviation. If by reason of or in compliance with any such direction or recommendation the vessel does not proceed to any place of discharge to which she has been ordered pursuant to this charter, the vessel may proceed to any place which the master or Owners in his or their discretion select and there discharge the cargo or such part of it as may be affected. Such discharge shall be deemed to be due fulfilment of Owners obligations under this charter so far as the cargo discharged is concerned. Charterers shall procure that all bills of lading issued under this charter shall contain the Chamber of Shipping Risks Clause 1952. 36. Both to Blame Collision Clause If the liability for any collision in which this vessel is involved while performing this charter fails to be determined in accordance with the laws of the United States of America, the following provision shall apply: If the ship comes into collision with another ship as a result of the negligence of the other ship and any act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in the management of the ship, the owners of the cargo carried hereunder will indemnify the carrier against all loss, or liability to the other or non-carrying ship or her owners in so far as such loss or liability represents loss of, or damage to or any claim whatsoever of the owners of the said cargo, paid or payable by the other or non-carrying ship or her owners to the owners of the said cargo and set off, recouped or recovered by the other or non-carrying ship or her owners as part of their claim against the carrying ship or carrier The foregoing provisions shall also apply where the owners, operators, or those in charge of any ship or ships or objects other than, or in addition to, the colliding ships or objects are at fault in respect of a collision or contact. Charterers shall provide that all bills of lading issued under this charter shall contain a provision in the foregoing terms to be applicable where the liability for any collision in which the vessel is involved fails to be determined in accordance with the laws of the United States of America. 37. New Jason Clause General average contributions shall be payable according to the York/Antwerp Rules 1974 and shall be adjusted in London in accordance with English law and practice but should adjustment be made in accordance with the law and practice of the United States of America, the following provision shall apply: In the event of accident, danger, damage or disaster, before or after the commencement of the voyage, resulting from any cause whatsoever, whether due to negligence or not, for which, or for the consequence of which, the carrier is not responsible by statute, contract or otherwise, the cargo shippers, consignees or the owners of the cargo shall contribute with the carrier in general average to the payment of any sacrifices, losses or expenses of a general average nature that may be made or incurred and shall pay salvage and special charges incurred in respect of the cargo.

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If a salving ship is owned or operated by the carrier, salvage shall be paid for as fully as if the said salving ship or ships belonged to strangers. Such deposit as the carrier or his agents may deem sufficient to cover the estimated contribution of the cargo and any salvage and special charges thereon shall, if required, be made by the cargo, shippers, consignees or owners of the cargo the carrier before delivery. Charterers shall procure that all bills of lading issued under this charter shall contain a provision in the foregoing terms, to be applicable when adjustment of general average is made in accordance with the laws and practice of the United States of America. 38. Clause Paramount Charterers shall procure that all bills of lading issued pursuant to this charter shall contain the following clauses: (1) Subject to sub-clause (2) hereof, this bill of lading shall be governed by, and have effect subject to the rules contained in the International Convention for the Unification of Certain Rules relating to Bills of Lading signed at Brussels of 25th August 1924 (hereafter the Hague Rules) as amended by the Protocol signed at Brussels on 23rd February 1968 (hereafter the Hague-Visby Rules). Nothing contained herein shall be deemed to be either a surrender by the carrier or any of his rights or immunities or any increase of any of his responsibilities under the Hague-Visby Rules. (2) If there is a governing legislation which applies the Hague Rules compulsorily to this bill of lading, to the exclusion of the Hague-Visby Rules, then this bill of lading shall have effect subject to the Hague Rules. Nothing herein contained shall be deemed to be either a surrender by the carrier of any of his rights or immunities or an increase of any of his responsibilities or liabilities under the Hague Rules. (3) If any terms of this bill of lading is repugnant to the Hague-Visby Rules, or the Hague Rules if applicable, such term shall be void to that extent but no further. 39. Tovalop Owners warrant that the vessel is properly entered in The American Club P&I Club and will so remain during the currency of this charter. Owners to have P&I protection against pollution. 40. Export Restrictions The master shall not be required or bound to sign bills of lading for the carriage of cargo to any place to which export of such cargo is prohibited under the laws, rules or regulations of the country in which the cargo was produced and/or shipped. Charterers shall procure that all bills of lading issued under this charter, shall contain the following clause: If any laws rules or regulations applied by the government of the country in which the cargo was produced and/or shipped, or any relevant agency thereof, impose a prohibition on export of the cargo to the place of discharge designated in or ordered under this bill of lading, carriers shall be entitled to require cargo owners forthwith to nominate an alternative discharge place for the discharge of the cargo, or such part of it as may be affected, which alternative place shall not be subject to the prohibition, and carriers shall

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be entitled to accept orders from cargo owners to proceed to and discharge at such alternative place. If cargo owners fail to nominate an alternative place within 72 hours after they or their agents have received from carriers notice of such prohibition, carriers shall be at liberty to discharge the cargo or such part of it as may be affected by the prohibition at any safe place on which they or the master may in their or his absolute discretion decide and which is not subject to prohibition, and such discharge shall constitute due performance of the contract contained in this bill of lading so far as the cargo so discharged is concerned. The foregoing provision shall apply mutatis mutandis to this charter, the references to this bill of lading being deemed to be references to this charter. 41. Law and Litigation (a) This charter shall be construed and the relations between the parties determined in accordance with the laws of England. (b) Any dispute arising under this charter shall be decided by the English Courts to whose jurisdiction the parties hereby agree. (c) Notwithstanding the foregoing, but without prejudice to any partys right to arrest or maintain the arrest of any maritime property, either party may, by giving notice of election to the other party, elect to have any such dispute referred to the arbitration of a single arbitrator in London in accordance with the provisions of the Arbitration Act 1950, or any statutory modification, or reenactment thereof for the time being in force. i. A party shall lose its right to make such an election only if: a) it receives from the other party a written notice of dispute which: 1) states expressly that a dispute has arisen out of this charter; 2) specifies the nature of the dispute; and 3) refers expressly to this clause 0 and b) it fails to give notice of election to have the dispute referred to arbitration not later than 30 days from the date of receipt of such notice of dispute. ii. The parties hereby agree that either party may: a) appeal to the High Court on any question of law arising out of an award; b) apply to the High Court for an order that the arbitrator state the reason for his award;

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c) give notice to the arbitrator that a reasoned award is required; and d) apply to the High Court to determine any question of law arising in the course of the reference. (d) It shall be a condition precedent to the right of any party to a stay of any legal proceedings in which maritime property has been, or may be, arrested in connection with a dispute under this charger, that that party furnishes to the other party security to which the other party would have been entitled in such legal proceedings in the absence of a stay. 42. Construction The side headings have been included in this charter for convenience of reference and shall in no way affect the construction hereof. Additional Clauses (43 to 65) to form an integral part of this Time Charter Party as attached. IN WITNESS WHEREOF the parties have signed this Contract. Owners SIGNED by BLUE SKY HOLDINGS INC. ) ) ) Charterers SIGNED by FAR EAST MARITIME PETROLEUM TRANSPORT CO. ) ) )

Authorised Signature

KJ Raly

PM Nadam
Authorised Signature

37

Schedule 1 LPG/C "ALPHA STAR C/P dated 10th January 2005 Blue sky Holdings Inc. - Far East Maritime Petroleum Transport Company 43. Transhipment/Lighterage Charterers have the option of discharging by lighterage operation. to such circumstances, Charterers shall ensure that the adequate fendering, hoses, and other lighterage equipment, to the satisfaction of the Master, as provided. As far as possible, such operations shall be carried out in conformity with the provisions of the ICS ship to ship transfer guide (liquefied gases) but in any case the lighterage operations always to be at full discretion of the Master and if the Master at any time considers that the lighterage operations are or-become unsafe then he may discontinue them. If transhipment/lighterage is performed off US West Coast then Vessel shall lighter or bunker more than 12 miles from shore. If Owners are obliged to extend their existing insurance policies to cover lighterage operations, Charterers shall reimburse Owners for additional premium incurred, provided that Charterers are given prior notification of the additional amount involved. Charters must obtain permission from proper authorities to perform lighterage operations and all expenses in this shall be for Charterers account. The foregoing in no way overrides Charterers obligation to. provide a berth where the vessel can safely proceed to lie and depart hem ways safely afloat. Owners will not be liable for any delays which may occur during the fenders rigging. 44. Reheater Vessel to be equipped with 1 re-heater and 1 booster pump in good working condition. 45. Clause 45: Vessel Acceptance Owners warrant acceptance: of the Vessel at all ports in Algeria, Egypt and Neuland and Saudi Arabia. Also Owners endeavour that the vessel is acceptable at any other ports to which she may be ordered during the currency of the charterparty. 46. Ice Vessel shall not be obliged to force ice. If on account of ice, the Master considers it dangerous to enter or remain at any loading or discharge place for fear of the Vessel being frozen in and/or being damaged, he shall have the liberty to sail to another place or port which is free form ice and there await Charterers further instructions. This Clause shall be deemed incorporated in the bill of lading under applicable circumstances.

47. Communications Expenses and Gratuities

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Charterers to pay Owners lump sum US$750,00 fixed cost for their communications however and in case that the vessel will be Sub-Chartered then any additional charges will be paid by the Charterers to the Owners. on presentation of Owners invoices supported by the invoices issued by Communication Companies. Essential gratuities and meals provided by the Master on behalf of Charterers to be within reason and to be settled against Owners invoice and as per Master's statements. 48. Shuttle Vessel Charterers to have the option to use the Vessel as shuttle vessel at Suez, Iraq and Libya. Charterers will arrange and pay for the supply of fresh water and they guarantee availability of Master's other reasonable requirements. Garbage collection during vessels operation as shuttle vessel to be for Owners account. 49. Notice for Redelivery 30, 25, 20, 15 days tentative and 10 days definite notice for time of redelivery. 50. P&C The terms and conditions of this charter party to remain strictly and confidential. 51. Clause 51 Charterers shall not have the right to deduct for off-hire period Unless Owners have been notified and have agreed to. 52. Clause 52 Vessel is to be assigned to Charterers agents however it is understood and agree that Agents shall do their utmost to protect Owners and/or Charterers interest avoiding any excessive or duplicate agency fee in all parts. It is agreed that Owners shall not pay for services unless rendered. Any disbursements paid by Charterers for Owners items, will be deducted from following hire as charged and without additional commission by Charterers, provided that Owners have verified charges. Owners always have the right to appoint protective agents at their own expense if they deem it necessary. 53. Exxon Drugs and Alcohol Policy Exxon Drug and Alcohol Policy clause as attached is to be incorporated into this Charter party and from Part of same, and any amendments therefore shall apply with Owners prior consent which shall not be unreasonably withheld. Owners warrant they have a policy on drug and alcohol abuse (policy) applicable to the vessel which meets or exceeds the standards in the Oil Companies International Marine Forum guidelines for the control of drugs and alcohol on board ships. Under the policy, alcohol impairment shall be defined as blood alcohol content of
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40mg/100ml or greater. The appropriate seafarers to be tested shall be all vessels officers and the drug/alcohol testing and screening shall include unannounced testing in addition to routine medical examinations. An objective of the policy should be that the frequency of the unannounced testing be adequate to act as an effective abuse deterrent, and that all officers be tested at least once a year through a combined program of unannounced testing and routine medical examinations. Owners further warrant that the policy will remain in effect during the term of this Charter and that Owners shall exercise due diligence to ensure that the policy is complied with. diligence. 54. ISM Owners undertake that from the date of coming into force of the International Management Code for the Safe Operation of Ships and for Pollution Prevention (the International Safety Management (ISM) Code) (the ISM Code) on the 1st July 1998, and for the duration of the Charter, the vessel and the 'Company' (as defined in the ISM Code) shall comply with the requirements of ISM Code. The Charterers require relevant document of Compliance and/or Safety Management Certificate. If the relevant documents are not received by Charterers within one (1) business day of Fixture, they shall have the right to cancel fixture. Without prejudice to any rights or remedies available to the Charterers under the terms of this Charter or under English Law. In the event of a breach of the above undertaking any loss, damage, expense or delay following there from shall be for Owners' account. 55. ITOPF Owners undertake that the vessel: Is a tanker owned by a member of the International Tanker Owners Pollution Federation Ltd. and will remain so throughout the Charter Period: Owners warrant that the vessel will only be entered in a P&I within the International Group of P&I acceptable to Charterers. 56. CP Administration If either party requires a formal Charter Party to be prepared and signed then owners shall procure that owners broker shall: prepare a Charter Party in the format of this charter, as modified by the recap fixture telex/email, and bearing the same date as the recap fixture telex/email and shall arrange for signature thereof by both owners and charterers, 57. Law/Arbitration Good and proper service of proceedings can be made by ordinary mail on owners at c/o Possidonos Avenue 48, Glyfada Athens and on Charters at 21 Giza Street, 9th Floor, Nile Tower Building, P.O. Box 143, Al Giza 12211, Cairo Egypt. It is understood that an actual impairment r any test finding impairment shall not in and of itself mean the Owners has failed to exercise due

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Notwithstanding Clause 55, either party may, by giving written notice of election to the other party, elect to have any disputes arising under this Charter referred to arbitration in London according to English Law consisting of one arbitrator to be appointed by the Owner, one by the Charterer, and one by the two so closed. The decision of any two of the three on any point or points shall be final. Until such time a the arbitrators finally close the hearings either party shall have the right by written notice served on the arbitrators and on an officer of the other party to specify further disputes or differences under this Charter for hearing and determination. 58. Bill of Landing In case of (a) Non-Presentation of Bills of Lading in discharge port and/or (b) Change of destination, Owners letters of Indemnities for non presentation of Bills of Lading at discharge port and charge of destination respectively may be invoked by Charterers by referring to this clause referencing quantities, receives, and/or discharge ports. 59. 0.5 percent Shortages/Loss Clause Notwithstanding anything contained in this Charter Party neither the Owners nor the vessel shall be liable for any loss or shortage except. to the extent that such: loss or shortage exceeds one half of one percent (0,5 PCT) of the loaded figure. For the purposes of this clause loss or shortage shall be calculated on the basis of vessel's intake and outturn figures as measured and verified on board by an independent cargo surveyor appointed and paid by Charterers. Any loss or shortage, for which the Owners shall by liable according to the above definitions, shall be reimbursed by Owners to Charterers at Charterers documented FOB price plus pro-rata freight as agreed elsewhere in this Charter Party. 60. Charterers Communications with the Vessel All correspondence exchanged between Charterers and the vessel to be always copied to Owners. 61. ISPS Owners undertake that from the date of coming into force of the International Ship and Port Facility Security Code on the 1 July 2004, and for the duration of the Charter, the vessel shall comply with the requirements of the IMPS Code. Whether Charterers require ISSC document/certificate same to be provided by Owners. 62. Maintenance Notwithstanding the. provisions of Clause 21 hereof, loss of time due to any of the masons specified therein or to cleaning of boilers and/or opening up of. pistons and/or overhauling of engines and/or cargo pumps shall be allowed on hire up to a total calculated at the rate of 72 hours per year and pro-rata for part of a year.

63. Owners Husbandry Matters Notwithstanding the provisions of Clause 21 hereof, loss of time due to any of the reasons specified therein or for vessel's call Kuwait, Bahrain or Malta every 40 to 50 Days for Owners husbandry matters or in case of immediate need of medical attendance for vessel's crew the total time of 4 days maximum per call shall be allowed on hire the time to start count as from the time the vessel wilt sail from Khavr Al Amaya Deep Water Anchorage A or from Off Libyan Territorial Waters STS Area up to the time the vessel will return at the same position.

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64. War Risks Clause If Owners grant their approval for the vessel to trade in areas where there is ware (de facto or de jure) or threat of war, Charters will pay Owners for any increase in war risk insurance premiums/costs including, but not limited to vessels full hull and machinery value (including hull and freight interest), blocking and trapping, mine risks, loss of hire and freight, bunkers and consumables, P&I coverage and/or Master, officers, and crew war bonus payments exceeding those payable on the date of this charterparty. The insured value shall be that advised by Owner. Such payments will be payable for the whole period, as defined by underwriters and/or PI club, which the vessel spends within the war risk area. Payment shall be made on Owners pro forma invoice prior to entering the War Zone and any additional premium or reduction will be settled immediately on sailing from the War Zone or on receipt of Insurance Companys final invoice whichever is the later. The payment or obligations to pay such insurance premiums/costs does not preclude Owners and/or Masters right to refuse such voyage or orders. 65. Commission Commission of 0.75% is payable to Jubilee Ships by the Owners. IN WITNESS WHEREOF the parties have signed his contract. Owners SIGNED by BLUE SKY HOLDINGS INC ) ) ) Charterers SIGNED by FAR EAST MARITIME PETROLEUM TRANSPORT CO. ) ) )

Authorised Signature

KJ Raly

Authorised Signature

PM Nadam

42

FRONT PAGE ORIGINAL NEGOTIABLE Far East Maritime Petroleum Transport Company F.E.M.P.T.C. _____________________________________________________________________ DOCUMENTARY CREDIT No.:

BILL OF LADING FOR TANKSHIP

SHIPPED in apparent good order and condition by FAR EAST PETROLEUM TRANSPORT COMPANY (FEMPTC) On board the LIBERIAN FLAG LPG/C ALPHA STAR Whereof CAPT. P. KRYGGER is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C GAS PETRA A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY FREIGHT PARTICULARS SHIPPER GRADE LPG MIXTURE (RATIO C4 75PCT/C3 25PCT) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER METRIC TONS 4500.497 IN AIR CHARTERPARTY U.S. BBLS. AT 60F DENSITY 15C 0.5576 IN AIR LOCAL AGENT AT MAKAI PORT NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR P.O.BOX 225998 MAKAI CITY 81206, NEULAND TEL: 8669541, Fax: 8664127

This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM COMPANY (FEMPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactmentsenenactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 12th day of May 2005

______________________ MASTER OR AGENT

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REVERSE PAGE

ENDORSED TO THE ORDER OF: HORIZON BANK PLC

FAR EAST MARITIME PETROLEUM COMPANY

WITHOUT RECOURSE DELIVER TO THE ORDER OF

NEULAND PETROLEUM REFINERY COMPANY

HORIZON BANK PLC

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START OF DOCUMENT
Far East Maritime Petroleum Transport Company F.E.M.P.T.C. ________________________________________________________________________ Date: 15-May-2005 COMMERCIAL INVOICE No.:3838/2005 (ORIGINAL) TO: NEULAND PETROLEUM REFINERY CO., LTD. P.O. Box 4505 MAKAI CITY 81206 NEULAND ATTN: Dr Petra Singer

Vessel LPG/C ALPHA STAR Contract Date 27-Apr-2005 Voy No. 088/2005/NP-01 Loading Port International Waters Green Sea by Transhipment Ex LPG/C Gas Logic" Discharge Port Makai Port, Neuland B/L Date 12-May 2005 B/L Qty (MT) 4,500.497 (1,125.218 MT Propane/3,375.29 MT Butane) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $330.00 (May 2005) Brit Land Contract Price (PMT) Butane $330.00 (May 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct.Propane/75-80 Pct. Butane With Clefins Content Max 10Pct Vol and Sulfur Content Max 140 PPMW, as specified in Neuland Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 1,125.218 MT x US$330.00 Butane: 3,375.279 MT x US$330.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 4,500.497 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$)

$371,321.94 $1,113,842.07

$90,009.94 $1,575,173.95

Prepared by:

K. Jallama

Approved by:

Jason Wong

END OF DOCUMENT

45

START OF DOCUMENT FRONT PAGE 1st Original Far East Maritime Petroleum Transport Company F.E.M.P.T.C. _____________________________________________________________________ DOCUMENTARY CREDIT No.: 7759AAQ2005964753

BILL OF LADING FOR TANKSHIP

SHIPPED in apparent good order and condition by FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) On board the LIBERIAN FLAG ST or M/T LPG/C "ASIAN GLORY" Whereof CAPT. JONATHAN MAK is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C FRONT GAS A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY SHIPPER FREIGHT PARTICULARS GRADE LPG MIXTURE (RATIO C4 75PCT/C3 25PCT) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER METRIC TONS 3,100,241 IN AIR CHARTERPARTY U.S. BBLS. AT 60F DENSITY 15C (IN AIR) 0.5580 LOCAL AGENT AT MAKAI PORT NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR P.O.BOX 225998 MAKAI CITY 81206, NEULAND TEL: 8669541, Fax: 8664127

Notify at destination:

Neuland Petroleum Refinery Co Ltd Makai City, Neuland Tel: 8662934, Fax: 8662935

This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 22nd day of May 2005

___________________ MASTER OR AGENT

46

REVERSE PAGE

ENDORSED TO THE ORDER OF: HORIZON BANK PLC

FAR EAST MARITIME PETROLEUM COMPANY

WITHOUT RECOURSE DELIVER TO THE ORDER OF NEULAND PETROLEUM REFINERY COMPANY

HORIZON BANK PLC

END OF DOCUMENT

47

Far East Maritime Petroleum Transport Company

F.E.M.P.T.C. ________________________________________________________________________
Date: 23-May-2005 No.:3853/2005 COMMERCIAL INVOICE (ORIGINAL) TO: NEULAND PETROLEUM REFINERY CO., LTD. P.O. Box 4505 MAKAI CITY 81206 NEULAND ATTN: Dr Petra Singer Vessel LPG/C Asian Glory Contract Date 27-Apr-2005 Voy No. 092/2005/NP-02 Loading Port International Waters Green Sea by Transhipment Ex LPG/C Front Gas Discharge Port Makai Port, Neuland B/L Date 22-May 2005 B/L Qty (MT) 3,100.241 (775.044 MT Propane/2,325.197 MT Butain) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $330.00 (May 2005) Brit Land Contract Price (PMT) Butane $330.00 (May 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct.Propane/75-80 Pct. Butane With Clefins Content Max 10Pct Vol and Sulfur Content Max 140 PPMW, as specified in Neupetrol Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 775.044 MT x US$330.00 Butane: 2,325.197 MT x US$330.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 3,100.241 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$)

$255,764.52 $767,315.01

$62,004.82 $1,085,084.35

Prepared by:

K. Jallama

Approved by:

Jason Wong

48

FRONT PAGE ORIGINAL NEGOTIABLE Far East Maritime Petroleum Transport Company F.E.M.P.T.C. ____________________________________________________________________ DOCUMENTARY CREDIT No.: 7759AAQ2005964753

BILL OF LADING FOR TANKSHIP

SHIPPED in apparent good order and condition by FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) On board the LIBERIAN FLAG LPG/C ALPHA STAR Whereof CAPT. D. SINGER is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C GAS PETRA A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY FREIGHT PARTICULARS SHIPPER GRADE LPG MIXTURE (RATIO C4 75PCT/C3 25PCT) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER METRIC TONS 4500.513 IN AIR CHARTERPARTY

U.S. BBLS. AT 60F DENSITY 15C 0.5575 IN AIR

Notify at destination: Neuland Petroleum Refinery Co Ltd Makai City, Neuland Tel: 8662934, Fax: 8662935

LOCAL AGENT AT MAKAI PORT NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR P.O.BOX 225998 MAKAI CITY 81206, NEULAND TEL: 8669541, Fax: 8664127

This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 12th day of June 2005

MASTER OR AGENT
49

REVERSE PAGE

END OF DOCUMENT

50

START OF DOCUMENT Far East Maritime Petroleum Transport Company F.E.M.P.T.C.

________________________________________________________________________ Date: 12-Jun-2005 COMMERCIAL INVOICE No.:3864/2005 (ORIGINAL) TO: NEULAND PETROLEUM REFINERY CO., LTD. P.O. Box 4505 MAKAI CITY 81206 NEULAND ATTN: Dr Petra Singer

Vessel LPG/C ALPHA STAR Contract Date 27-Apr-2005 Voy No. 105/2005/NP-03 Loading Port International Waters Green Sea by Transhipment Ex LPG/C Gas Logic Discharge Port Makai Port, Neuland B/L Date 12-Jun-2005 B/L Qty (MT) 4,500.513 (1,125.437 MT Propane/3,375.076 MT Butane) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $330.00 (June 2005) Brit Land Contract Price (PMT) Butane $330.00 (June 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct.Propane/75-80 Pct. Butane With Clefins Content Max 10Pct Vol and Sulfur Content Max 140 PPMW, as specified in Neuland Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 1,125.437 MT x US$330.00 Butane: 3,375.076 MT x US$330.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 4,500.513 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$)

$371,394.21 $1,113,775.08

$90,010.26 $1,575,179.55

Prepared by:

K. Jallama

Approved by:

Jason Wong

END OF DOCUMENT
51

FRONT PAGE ORIGINAL NEGOTIABLE Far East Maritime Petroleum Transport Company F.E.M.P.T.C. ________________________________________________________________________

BILL OF LADING FOR TANKSHIP DOCUMENTARY CREDIT No.: 7759AAQ2005964753

SHIPPED in apparent good order and condition by FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEPTC) On board the PANAMA FLAG ST or M/T LPG/C ASIAN GLORY Whereof CAPT. JONATHAN MAK is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C FRONT GAS A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY FREIGHT PARTICULARS SHIPPER GRADE LPG MIXTURE (RATIO C4 75% / C3 25%) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER CHARTER METRIC TONS (IN AIR) 3,100.078 C4 2,325.195 MT IN AIR/ C3 774.883 MT IN AIR U.S. BBLS. AT 60F LOCAL AGENT AT MAKAI PORT DENSITY 15C (IN AIR) 0.5584 NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR Notify at destination: Neuland Petroleum Refinery Co Ltd P.O.BOX 225998 Makai City, Neuland Tel: 8662934, Fax: 8662935 This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 24th day of June 2005

______________________ MASTER OR AGENT

52

REVERSE PAGE

END OF DOCUMENT

53

Far East Maritime Petroleum Transport Company F.E.M.P.T.C.

________________________________________________________________________ Date: 25-Jun-2005 COMMERCIAL INVOICE No.:3876/2005 (ORIGINAL) TO: NEULAND PETROLEUM REFINERY CO., LTD. P.O. Box 4505 Makai City 81206 NEULAND ATTN: Dr Petra Singer

Vessel Contract Date Voy No. Loading Port

LPG/C ASIAN GLORY 27-Apr-2005 110/2005/NP-04 International Waters Green Sea by Transhipment Ex LPG/C FRONT GAS Discharge Port Makai Port, Neuland B/L Date 24-Jun-2005 B/L Qty (MT) 3,100.078 (774.883 MT Propane / 2,325.195 MT Butane) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $330.00 (June 2005) Brit Land Contract Price (PMT) Butane $330.00 (June 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct. Propane / 75-80 Pct. Butane With Olefins Content Max 10 Pct Vol. and Sulfur Content Max 140 PPMW, as specified in Neupetrol Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 774.883MT x US$330.00 Butane: 2,325.195 MT x US$330.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 3,100.209 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$)

$255,711.39 $767,314.35

$62,004.18 $1,085,029.92

Prepared by:

Han Chandra

Approved by:

Jason Wong

END OF DOCUMENT

54

FRONT PAGE ORIGINAL NEGOTIABLE Far East Maritime Petroleum Transport Company F.E.M.P.T.C. _____________________________________________________________________ DOCUMENTARY CREDIT No.: 7759AAQ2005964753

BILL OF LADING FOR TANKSHIP

SHIPPED in apparent good order and condition by FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) On board the LIBERIAN FLAG LPG/C ALPHA STAR Whereof CAPT. G. HERBORT is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C FRONT GAS A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY FREIGHT PARTICULARS SHIPPER GRADE LPG MIXTURE (RATIO C4 75PCT/C3 25PCT) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER METRIC TONS 4491.334 IN AIR CHARTERPARTY

U.S. BBLS. AT 60F DENSITY 15C 0.5584 IN AIR

Notify at destination:

Neuland Petroleum Refinery Co Ltd Makai City, Neuland Tel: 8662934, Fax: 8662935

LOCAL AGENT AT MAKAI PORT NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR P.O.BOX 225998 MAKAI CITY 81206, NEULAND TEL: 8669541, Fax: 8664127

This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 11th day of July 2005

______________________ MASTER OR AGENT

55

REVERSE PAGE

ENDORSED TO THE ORDER OF: HORIZON BANK PLC

FAR EAST MARITIME PETROLEUM COMPANY

WITHOUT RECOURSE DELIVER TO THE ORDER OF

NEULAND PETROLEUM REFINERY COMPANY

HORIZON BANK PLC

END OF DOCUMENT

56

Far East Maritime Petroleum Transport Company

F.E.M.P.T.C. _____________________________________________________________________
Date: 11-Jul-2005 COMMERCIAL INVOICE (COPY) TO: NEULAND PETROLEUM REFINERY CO., LTD. P.O. Box 4505 Makai City 81206 NEULAND ATTN: Dr Ahmed Husein Al Refai No.:3887/2005

Vessel Contract Date Voy No. Loading Port

LPG/C Libra Gas II 27-Apr-2005 118/2005/NP-05 International Waters Green Sea by Transhipment Ex LPG/C EGYPT GAS Discharge Port Makai Port, Neuland B/L Date 11-Jul-2005 B/L Qty (MT) 4,491.334 (1,123.136 MT Propane / 3,368.198 MT Butane) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $409.00 (July 2005) Brit Land Contract Price (PMT) Butane $409.00 (July 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct. Propane / 75-80 Pct. Butane With Olefins Content Max 10 Pct Vol. and Sulfur Content Max 140 PPMW, as specified in Neupetrol Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 1,123.136 MT x US$409.00 Butane: 3,368.198 MT x US$409.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 4,491.334 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$)

$459,362.62 $1,377,592.98

$89,826.68 $1,926,782.28

Prepared by:

Hara Khamana

Approved by:

Jason Wong

57

FRONT PAGE ORIGINAL NEGOTIABLE Far East Maritime Petroleum Transport Company F.E.M.P.T.C. ____________________________________________________________________ DOCUMENTARY CREDIT No.: 7759AAQ2005964753

BILL OF LADING FOR TANKSHIP

SHIPPED in apparent good order and condition by FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) On board the LIBERIAN FLAG ST or LPG/C "TITAN GAS II" Whereof CAPT. HELLA SINGER is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C "GAS STORM" A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY FREIGHT PARTICULARS SHIPPER GRADE LPG MIXTURE (RATIO C4 75PCT/C3 25PCT) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER METRIC TONS 3,100.338 AIR CHARTERPARTY

U.S. BBLS. AT 60F DENSITY 15C 0.5584 IN AIR

Notify at destination:

Neuland Petroleum Refinery Co Ltd Makai City, Neuland Tel: 8662934, Fax: 8662935

LOCAL AGENT AT MAKAI PORT NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR P.O.BOX 225998 MAKAI CITY 81206, NEULAND TEL: 8669541, Fax: 8664127

This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 26th day of July 2005

___________________ MASTER OR AGENT

58

REVERSE PAGE

ENDORSED TO THE ORDER OF: HORIZON BANK PLC

FAR EAST MARITIME PETROLEUM COMPANY

END OF DOCUMENT

59

Far East Maritime Petroleum Transport Company

F.E.M.P.T.C. _____________________________________________________________________
Date: 26-Jul-2005 COMMERCIAL INVOICE (ORIGINAL) TO: NEULAND EAST PETROLEUM REFINERY CO., LTD. P.O. Box 4505 Makai City 81206 NEULAND ATTN: Dr Petra Singer Vessel Contract Date Voy No. Loading Port LPG/C TITAN GAS II 27-Apr-2005 122/2005/NP-06 International Waters Green Sea by Transhipment Ex LPG/C GAS STORM Discharge Port Makai Port, Neuland B/L Date 26- Jul-2005 B/L Qty (MT) 3,100.338 (775.212 MT Propane / 2,325.126 MT Butane) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $409.00 (July 2005) Brit Land Contract Price (PMT) Butane $409.00 (July 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct. Propane / 75-80 Pct. Butane With Olefins Content Max 10 Pct Vol. and Sulfur Content Max 140 PPMW, as specified in Neupetrol Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 775.212 MT x US$409.00 Butane: 2,325.126 MT x US$409.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 3,100.338 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$) No.:3902/2005

$317,061.71 $950,976.53

$62,006.76 $1,330,045.00

Prepared by:

Hara Khamana

Approved by:

Rashid Tana

END OF DOCUMENT

60

FRONT PAGE ORIGINAL NEGOTIABLE Far East Maritime Petroleum Transport Company F.E.M.P.T.C. __________________________________________________________________ DOCUMENTARY CREDIT No.: 7759AAQ2005964753

BILL OF LADING FOR TANKSHIP

SHIPPED in apparent good order and condition by FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) On board the LIBERIAN FLAG ST or M/T LPG/C "ASIAN GLORY" Whereof CAPT. VADIMS KOLOTUHINS is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C "FRONT GAS" A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY SHIPPER FREIGHT PARTICULARS GRADE LPG MIXTURE (RATIO C4 75PCT/C3 25PCT) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER METRIC TONS 3,100.090 IN AIR CHARTERPARTY C4 2,325.068 MT IN AIR/ C3 775.023 MT IN AIR U.S. BBLS. AT 60F DENSITY 15C 0.5569 IN AIR LOCAL AGENT AT MAKAI PORT NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR P.O.BOX 225998 MAKAI CITY 81206, NEULAND TEL: 8669541, Fax: 8664127

Notify at destination:

Neuland Petroleum Refinery Co Ltd Makai City, Neuland Tel: 8662934, Fax: 8662935

This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 11th day of August 2005

MASTER OR AGENT

61

REVERSE PAGE

ENDORSED TO THE ORDER OF: HORIZON BANK PLC

FAR EAST MARITIME PETROLEUM COMPANY

WITHOUT RECOURSE DELIVER TO THE ORDER OF

NEULAND PETROLEUM REFINERY COMPANY

HORIZON BANK PLC

62

START OF DOCUMENT

Far East Maritime Petroleum Transport Company

F.E.M.P.T.C.
________________________________________________________________________ Date: 21-Aug-2005 COMMERCIAL INVOICE No.:3913/2005 (ORIGINAL) TO: NEULAND PETROLEUM REFINERY CO., LTD. P.O. Box 4505 Makai City 81206 NEULAND

ATTN: Dr Petra Singer Vessel Contract Date Voy No. Loading Port LPG/C ASIAN GLORY 27-Apr-2005 125/2005/NP-07 International Waters Green Sea by Transhipment Ex LPG/C FRONT GAS Discharge Port Makai Port, Neuland B/L Date 11-Aug-2005 B/L Qty (MT) 3,100.090 (775.022 MT Propane/2,325.068 MT Butane) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $442.00 (August 2005) Brit Land Contract Price (PMT) Butane $442.00 (August 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct.Propane/75-80 Pct. Butane With Olefins Content Max 10 Pct Vol. and Sulfur Content Max 140 PPMW, as specified in Neupetrol Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 775.022 MT x US$442.00 Butane: 2,325.068 MT x US$442.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 3,100.090 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$)

$342,559.72 $1,027,680.06

$62,001.80 $1,432,241.58

Prepared by:

Hara Khamana

Approved by:

Rashid Tana

END OF DOCUMENT
63

FRONT PAGE ORIGINAL NEGOTIABLE Far East Maritime Petroleum Transport Company F.E.M.P.T.C. _____________________________________________________________________ DOCUMENTARY CREDIT No.: 7759AAQ2005964753

BILL OF LADING FOR TANKSHIP

SHIPPED in apparent good order and condition by FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEMPTC) On board the PANAMA FLAG ST or M/T LPG/C "ASIAN GLORY" Whereof CAPT. VADIMS KOLOTUHINS is Master for this present voyage And now lying at the port of International waters at Green Sea by transhipment ex LPG/C "GAS STORM" A cargo in bulk (or in the case of packed cargo, marked and numbered as indicated) described as: GRADE - QUANTITY AND QUALITY AS FURNISHED BY SHIPPER FREIGHT PARTICULARS GRADE LPG MIXTURE (RATIO C4 75PCT/C3 25PCT) CLEAN ON BOARD MARINE LONG TONS FREIGHT PAYABLE AS PER METRIC TONS 3,100.262 AIR CHARTERPARTY CA 2,325.027 MT IN AIR / C3 775.235 MT IN AIR U.S. BBLS. AT 60F DENSITY 15C 0.5569 IN AIR LOCAL AGENT AT MAKAI PORT NADI CORPORATION FOR SHIPPING AGENCIES ASHER STREET FIRST BUIDING, 8TH FLOOR P.O.BOX 225998 MAKAI CITY 81206, NEULAND TEL: 8669541, Fax: 8664127

Notify at destination:

Neuland Petroleum Refinery Co Ltd Makai City, Neuland Tel: 8662934, Fax: 8662935

This cargo shall be delivered in the like good order and condition of MAKAI PORT, NEULAND or so near thereunto as she may get and there discharged unto TO THE ORDER OF FAR EAST MARITIME PETROLEUM TRANSPORT COMPANY (FEPTC) _____________ or assign, or order, subject to the following terms and condition: PARAMOUNT CLAUSE Where the port of shipment is in territory where legislation giving compulsory effect to the International Convention for the unification of certain rules of law relating to Bills of Lading signed at Brussels on the 25th August, 1924,(known as the Hague Rule) is in force, the contract evidence by this Bill of Lading shall have effect subject to such legislation. Where no such enactment is in force, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which enactments are compulsory applicable, the terms of the said Convention shall apply. LIBERTY The Vessel shall be at liberty to tow or to be towed, to make trial trips with or without notice or to adjust compasses, to assist vessels or aircraft in all positions of distress, to call at any port or ports within the intended voyage for oil fuel supplies, to sail without pilots, and to deviate for the purpose of saving life or property or any other reasonable purpose. INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading IN WITNESS WHEREOF, the Master/Agent of the said vessel has signed 3/3 original Bills of Lading all of this tenor and date, one of which being accomplished the others to stand void Dated at INTERNATIONAL WATERS AT GREEN SEA by this 21st day of August 2005

______________________ MASTER OR AGENT

64

REVERSE PAGE
1. WAR CLAUSE (a) No Bill of Lading to be signed for any blockaded port, and if the port of discharge declared blockaded after Bs/L have been signed , or if the port to which the vessel has been ordered to discharge either on signing Bills of Lading or thereafter be one to which the vessel is or shall be prohibited from going by the Government of the Nation under whose flag the vessel sails or by any other Government, the Owner shall discharge the cargo at any other port covered by the C/P under which the vessel is serving as ordered by the Charterers (provided such other ports is not blockaded or prohibited port as mentioned above) and shall be entitled to freight as the vessel had discharged at the port of discharge to which she was originally ordered. (b) The vessel shall have liberty to comply with any other orders or directions as to departure, arrival, routes, ports of call, stoppage destination, delivery or otherwise howsoever given by the Government of the Nation under whose flag the vessel sails or any department thereof, or any person acting or purporting to act with the authority of such Government or of any department thereof, or by any Committee or person having under the terms of the War Risk Insurance on the vessel, the right to give such orders or directions and if by reason of and in compliance with any such orders or directions anything is done or not done, the same shall not be deemed a deviation and delivery in accordance with such orders or directions shall be a fulfilment of the contract voyage and the freight shall be payable accordingly. 2. GENERAL AVERAGE AND NEW JASON CLAUSE General Average, if any shall be adjusted in London according to York/Antwerp Rules 1974, and English Law and practice, but if, by agreement, the adjustment is made in accordance with the law and practice of the United States of America, the following clause shall apply :- ln the event of accident, danger, damage or disaster before or after the commencement of the voyage, resulting from any cause whatsoever, whether due to negligence or not, for which, or for consequence of which, the Carrier is not responsible by statue contract or otherwise, the cargo, Shippers, Consignee or Owners of the cargo shall contribute with the Carrier in General Average to the payment of any sacrifices, losses or expenses of a General Average nature that may be made or incurred, and shall pay salvage and special charges incurred in respect of the cargo. If a salving vessel is owned and operated by the Carrier, salvage shall be paid for as fully as if the said salving vessel or vessels belong to stranger. 3. BOTH-TO-BLAME COLLISION CLAUSE If the liability for any collision in which the vessel is involved while performing the B/L fails to be determined in accordance with the Laws of the United States of America, the following clause shall apply:If the vessel comes into collision with another vessel as a result of the negligence of the other vessel and any act, neglect or default of the Master, Mariner, Pilot, or the servant of the Carrier in the Navigation or in the management of the vessel, the Owners of the cargo carried hereunder will indemnify the Carrier against all loss or liability to the other non-carrying vessel of her Owner in so far as such loss or liability represent loss of, or damage to, or any claim whatsoever of the Owners of the said cargo, paid or payable by the other non-55 carrying vessel or her Owners to the Owners of the said cargo and set off, recouped or recovered by the other or non-carrying vessel of her Owners as part of their claim against the carrying vessel of Carrier. The foregoing provisions shall also apply where the Owners, Operators of those in charge of any vessel or vessels or objects other than, or in addition to, the colliding vessel or objects are at fault in respect of a collision or contact. 4. EXEMPTIONS AND IMMUNITIES OF ALL SERVANTS AND AGENTS OF THE CARRIER No servant or agent of the Court (including every independent contractor from time to time employed by the Carrier) shall in any circumstances whatsoever be-under any liability whatsoever to the Shipper, Consignee or Owner of the good or to any holder of this B/l for any loss, damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect, or default on his part while acting in the course of or in connection with his employment and, but without prejudice to the generality of the foregoing provisions in this Clause, every exemption, limitation, condition and liberty herein contained and every right exemption from liability, defence and immunity of whatsoever nature applicable to the Carrier or to which the Carrier is entitled hereunder shall also be available and shall extend to protect every such servants or agent of the Carrier acting as aforesaid and for the purpose of all the foregoing provisions of this clause the Carrier is or shall be deemed to be acting as agent or trustee on behalf of and for the benefit of all persons who are or might be his servants or agents from time to time (including independent contractors as aforesaid) and all such persons shall to this extent be or be deemed to be parties to the contract in evidenced by this Bill of Lading . 5. LAW-ARBITRATION The contract evidenced by this Bill of Lading shall be governed by English Law and any disputes hereunder shall be determined in Singapore according to English Law to the exclusion of the jurisdiction of the Court of any other Country. Any and all differences and disputes arising out of this Bill of Lading, shall be decided by Arbitration in Singapore in accordance with the AMTAC Rules current at the time when the arbitration proceedings are commenced. The party demanding Arbitration shall notify the other party of the name of his Arbitration in writing at the Principal place of business of the party. The other party shall appoint his Arbitrator and notify the first party in us Principal place of business of the appointment of such Arbitrator. In the event that the party against whom the claim is being made does not appoint the Arbitrator within 21 days from receipt of notice, it shall be open to the first party to appoint his Arbitrators as Sole Arbitrator to hear and determine such disputes.
ENDORSED TO THE ORDER OF: HORIZON BANK PLC

WITHOUT RECOURSE DELIVER TO THE ORDER OF Neuland Petroleum RefineryCompany

FAR EAST MARITIME PETROLEUM COMPANY

HORIZON BANK PLC

START OF DOCUMENT
65

Far East Maritime Petroleum Transport Company

F.E.M.P.T.C.
________________________________________________________________________ Date: 21-Aug-2005 COMMERCIAL INVOICE No.:3926/2005 (ORIGINAL) TO: NEULAND PETROLEUM REFINERY CO., LTD. P.O. Box 4505 Makai City 81206 NEULAND ATTN: Dr Petra Singer Vessel Contract Date Voy No. Loading Port LPG/C ASIAN GLORY 27-Apr-2005 127/2005/NP-08 International Waters Green Sea by Transhipment Ex LPG/C GAS STORM Discharge Port Makai Port, Neuland B/L Date 21-Aug-2005 B/L Qty (MT) 3,100.262 (775.235 MT Propane/2,325.027 MT Butane) Origin of cargo Brit Land Brit Land Contract Price (PMT) Propane $442.00 (August 2005) Brit Land Contract Price (PMT) Butane $442.00 (August 2005) Transportation (PMT) $20.00 Letter of Credit No. 7759AAQ2005964753 Particulars Cargo LPG Mixture (20-25 Pct.Propane/75-80 Pct. Butane With Olefins Content Max 10 Pct Vol. and Sulfur Content Max 140 PPMW, as specified in Neupetrol Tender No. 2/2005 Conditions and Foreign Purchase Order No. PBA/50119483 CFR Makai Port, Neuland: Propane: 775.235 MT x US$442.00 Butane: 2,325.027 MT x US$442.00 Transportation cost (Brit Land to Makai City, Neuland) Total B/L Qty. 3,100.262 MT x US$20.00 PMT TOTAL Amount payable by TT to: Pay: Far East Maritime Petroleum Transport Company (F.E.M.P.T.C.) Account NO. 88402963 With: Easy Bank - Makai City, Neuland Swift: FRDDKLMAXXX Thru: Bank of New York, New York Swift: HHBDTSTNXXXX Amount (US$)

$342,653.87 $1,027,661.93

$62,005.24 $1,432,321.04

Prepared by:

K. Jallama

Approved by:

Rashid Tana

START OF DOCUMENT

66

Notice of Readiness

FAR EAST MARITIME PETROLEUM TRANSPORT CO

NOTICE OF READINESS
To Messrs: Neuland Petroleum Co. STAR" Vessel: Date: Time Zone: PORT: LPG/C "ALPHA 27 July 2005 UTC + MAKAI

Further to the previous notices given to you by our agent, I hereby tender You the notice that LPG/C "ALPHA STAR" at 04:00 hours on 27 July 2005 is ready in all respects to discharge all cargo on board. Minimum temperature acceptable at ship's tanks = -45 Deg. Celsius Maximum pressure acceptable at ship's tanks = 0.250 Bars

Accepted Time: Date: By: For Company:

............

Neuland Petroleum Co.

Master:

67

START OF DOCUMENT

From: Master, Alpha Star Sent: 27 July 2005 11:06 To: Far East Maritime Petroleum Company - GAS FLEET OPERATIONS Subject: Alpha Star Arrival Report Makai Port Dear Sirs, Vessel now alongside at Makai Port having berthed safely. 1. Arrival Drafts SW DF 6.00 m SW DA: 6.40 m 2. Vessel Times (all times local) Notice of Readiness (NOR) Pilot station Pilot on board First line All fast Pre-discharge checks start Complete safety checks Free pratique Commence discharge ops 3. Safety Checklists All Neuland Terminal and FEMPTC Pre-Discharging Safety Checklists completed and signed. 4. Expected Time Completion Cargo Operations Expect to complete cargo operations 22:00/28. Reverting with ETD. 04:00/27 06:48/27 07:00/27 08:06/27 08:42/27 09:00/27 09:30/27 09:42/27 09:54/27

Regards. Master ALPHA STAR

END OF DOCUMENT

68

TRIDENT OVERSEAS INC.

Authorized by: Managing Director LPG CARRIER CARGO PLANT PRE-ARRIVAL CHECKLIST CHECKLIST NO.: 098 Page 1 of 1. ISSUE: 20020844
1 2 Has a plan been prepared for loading/discharging operations? Has a stress/trim/stability study been prepared for loading/discharging operations including ballast/bunker operations? 3 Have detailed loading/discharging/ballast and bunkers instructions been prepared and notified to all officers/ratings and mallards participating in the operations including hazards and mallards associated with toxicity of the cargo to be loaded? 4 Has following equipment been tested/checked prior to arrival? Cargo Pumps Reliquifaction Plant Booster Pumps Emergency Shutdown System All Cargo Plant Machinery Alarms Cargo Tanks High Level Alarms and Shutdown System Remote Control and Manual Valves Fixed Gas Detection Equipment Portable Explosimeters, Gascope and SL Meters Air Locks Visual/Audible Alarms Cargo Compressors and Electrical Motor Room Ventilators/Fans Unused Cargo and Bunker Connections Property Blanked and Fully Bolted Cargo Compressors and Electrical Motor Room Fans/Ventilators Remote Shutdown Drip Trays Properly Positioned Bunker Tank Lids Properly Closed Ballast Tanks and Hold/Inter-Barrier Spaces Manholes Properly Closed and Fully Bolted

DATE/PLACE: 27 July 2005 Makai Port

P. Wignana
Chief Officer

S. Alam
___________________ Master Gas Engineer

______________________ _________________________

69

TRIDENT OVERSEAS INC.

Authorized by: Managing Director LPG CARRIER CARGO PLANT PRE-ARRIVAL CHECKLIST CHECKLIST NO.: 089 Page 1 of 5 ISSUE: 20005122
General 1 2 3 4 5 Is the Ship securely moored? Are emergency towing wires correctly positioned? Is there safe access between ship and shore? Is the ship ready to move under its own power? Is there an effective deck watch in attendance on board and adequate supervision on the terminal and on the ship? Is the agreed ship/shore communication system operative? Has the emergency signal to be used by the ship and shore been explained and understood? Have the procedures for cargo, bunker and ballast handling been agreed? Have the hazards associated with toxic substances in the cargo being handled been identified and understood? Is information available giving the necessary data for the safe handling of the cargo including, as applicable, a manufacturers inhibition certificate? Has information been exchanged between ship and shore on the maximum/minimum temperatures/pressure of the cargo to be handled? Are emergency shutdown systems working properly? Has the emergency shutdown procedures been agreed? A A Ship Terminal Code R R R PR R Remarks

6 7 8 9

AR A AR

10

11

12 13

70

14

Does the shore know the closing rate of ships automatic valves/does the ship have similar details of shore system?

71

TRIDENT OVERSEAS INC.

Authorized by: Managing Director LPG CARRIER CARGO PLANT PRE-ARRIVAL CHECKLIST CHECKLIST NO.: 089 Page 2 of 5 ISSUE: 20005122

72

General 15 16 17 Are fire hoses and fire-fighting equipment on board and ashore positioned and ready for immediate use? Is the water spray system ready for use? Is sufficient suitable protective equipment (including self-contained breathing apparatus) and protective clothing ready for immediate use? Are cargo and bunker hoses/arms in good condition, properly rigged and appropriate for the service intended? Are scuppers effectively plugged and drip trays in position, both on board and ashore? Are cargo tanks protected against inadvertent overfilling at all times while any cargo operations are in progress? Are unused cargo and bunker connections properly secured with blank flanges fully bolted? Are all cargo and bunker tan lids closed? Are hold and inter-barrier spaces properly inerted or filled with dry air as required? Are all remote control valves in working order? Are the required cargo pumps and compressors in good order, and have maximum working pressures been agreed between whip and shore? Is reliquifaction or boil off control equipment in good order? Are cargo system gauges and alarms correctly set and in good order? Is the gas detection equipment properly set for the cargo, calibrated and in good order? Is the compressor room properly ventilated, the electrical motor room properly pressurized and the alarm system working? Are cargo tank relief valves set correctly and actually relief valve settings clearly and visibly displayed?

Ship

Terminal

Code R

Remarks

18

19 20

N/A

N/A

21 22 23 24 25

N/A

N/A

Dry air

26 27 28 29

30

73

TRIDENT OVERSEAS INC.

Authorized by: Managing Director LPG CARRIER CARGO PLANT PRE-ARRIVAL CHECKLIST CHECKLIST NO.: 089 Page 3 of 5 ISSUE: 20005122

74

General 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Are hand torches of an approved type? Are portable VHF/UHF transceiver of an approved type? Are the ships main radio transmitter aerials earthed and radars switched off? Are electric cables to portable electrical equipment disconnected from power? Are all external doors and ports in the accommodation closed? Are window-type air conditioning units disconnected? Are air conditioning intakes which may permit the entry of cargo vapours closed? Are the requirements for use of galley equipment and other cooking appliances being observed? Are smoking regulations being observed? Are naked light regulations being observed? Is there provision for an emergency escape? Are sufficient personnel on board and ashore to deal with an emergency? Are adequate insulating means in place in the ship/shore connection? If the ship is capable of closed loading, have the requirements for closed operations been agreed? Has a vapour return line been connected? If a vapour return line is connected, have operating parameters been agreed? Are ship emergency fire control plans located externally?

Ship

Terminal

Code

Remarks

R N/A N/A

R N/A N/A R R

47

75

TRIDENT OVERSEAS INC.

Authorized by: Managing Director LPG CARRIER CARGO PLANT PRE-ARRIVAL CHECKLIST CHECKLIST NO.: 089 Page 4 of 5 ISSUE: 20005122

76

General 48 49 50 51 52 53 54 Is the inert Gas System fully operational and in good working order? Are deck seals in good working order? Have the fixed and portable oxygen analysers been calibrated and are they working properly Are all the individual tank IG valves (if fitted) correctly set and locked? Are sea and overboard discharge valves, when not in use, closed and visibly secured? Is the agreed tank venting system being used? Have measures been taken to ensure sufficient pumproom ventilation?

Ship

Terminal

Code P R R R

Remarks

AR R

If the ship is planning to tank clean alongside, the following questions should be answered. Change of Gas-Freeing/Grades Are operations planned during the ships stay alongside the shore installation? If so, have the Port Authority and terminal authority been informed? Ship Shore Remarks

Yes/No* Yes/No*

Yes/No*

* Delete Yes or No as Appropriate

P. Wignana
__________________________________ Chief Officer ___________________________________ Master

DATE/PLACE 27 July / Makai Port

77

TRIDENT OVERSEAS INC.

Authorized by: Managing Director LPG CARRIER CARGO PLANT PRE-ARRIVAL CHECKLIST CHECKLIST NO.: 089 Page 5 of 5 ISSUE: 20005122

78

Notice: To be attached to the checklist, for Pre-Loading/Pre-discharging by ship to ship Cargo Transfer Operations

DECLARATION:

We the undersigned have checked, where appropriate jointly, the items on this check list and have satisfied ourselves that the entries we have made are correct to the best of our knowledge.

We have also made arrangements to carry out repetitive checks as necessary and agreed that those items marked with the letter R in the column Code should be re-checked at intervals not exceeding ____ hours.

For discharging ship Name: Rank: Signature: Date: 27 July Time: 09:24 Piotr Wignana Chief Officer Name:

For receiving ship Sam Alam

term

Rank: Chemical Engineer Signature:

P. Wignana

S. Alam

79

START OF DOCUMENT

TRIDENT OVERSEAS INC.

Port: Makai Port / Neuland Petroleum Refinery co. Date: 27 July BEFORE DISCHARGE AGREEMENT DESCRIPTION 1. Terminal presentation flange 2. Size and presentation flange of cargo hose 3. Number of cargo hoses 4. Minimum discharging rate 5. Maximum discharging rate 6. Requested discharging rate 7. Pressure to be maintained at the manifold during discharging 8. Portable transceivers communication channels 8 inch 8 inch 1 liquid / 1 vapour agreed agreed agreed agreed agreed / channel 2

P. Wignana
LPG/C Alpha Star

S. Alam
Neuland Petroleum Refinery

END OF DOCUMENT

80

Neuland Petroleum Refinery Co. Ltd.

Facsimile Transmission Our reference: Date: To: C.C. Subject: Facsimile Number: Dear Sirs, We regret to inform you that there has been a severe fire on board the "ALPHA STAR" this afternoon following the berthing of the vessel and shortly after the commencement of discharge operations. There has been significant damage to the vessel, including the loss of the engine room and accommodation block which have been totally destroyed by fire. Investigations are ongoing but we regret to inform you that the immediate reports from experts attending the casualty is that the vessel is a total constructive loss. In light of the loss of the vessel and the non-delivery of cargo we hereby hold you fully responsible for the same and reserve all our rights at law. Best Regards. "ALPHA STAR" 27/07/2005 FAR EAST MARITIME PETROLEUM TRANSPORTATION CO. Owners of the "ALPHA STAR" Fire onboard "ALPHA STAR" at Makai Port

Paul Gorman Chief Executive Officer

81

START OF DOCUMENT
INTERNATIONAL CONVENTION FOR THE UNIFICATION OF CERTAIN RULES OF LAW RELATING TO BILLS OF LADING, 1924.

Parties Algeria Angola Antigua and Barbuda Argentina Australia Bahamas Barbados Belgium Belize Bolivia Cameroon Cape Verde Islands Chile Cote D?Ivoire Croatia Cuba Cyprus Denmark Dominica, Republic of Ecuador Egypt Estonia Fiji Finland France Gambia Germany Ghana Goa

Date of signature

Instr of a a a a a(R) a a

Date of deposit 13/04/1964 02/02/1952 02/12/1930 19/04/1961 04/07/1955 02/12/1930 02/12/1930 02/06/1930 02/12/1930 28/05/1982 02/12/1930 02/02/1952 15/12/1961 30/07/1992 25/07/1977 02/12/1930 01/07/1938 02/12/1930 23/03/1977 29/11/1943 02/12/1930 01/07/1939 04/01/1937 02/12/1930 01/07/1939 02/12/1930 02/02/1952

Date of entry into force 13/10/1964 02/08/1952 02/06/1931 19/10/1961 04/01/1956 02/06/1931 02/06/1931 02/06/1931 02/06/1931 28/11/1982 02/06/1931 02/08/1952 15/06/1962 08/10/1992 25/01/1978 02/06/1931 01/01/1939 02/06/1931 23/09/1977 01/05/1944 02/06/1931 01/01/1940 04/07/1937 02/06/1931 01/01/1940 02/06/1931 02/08/1952

08/09/1924

r(R) a a a(R) a

25/08/1924

a(R) a(R) a a(R) a a(R) a a a(R)

25/08/1924 a(R) a 12/03/1925 24/08/1925 r(R) a r(R) a a

82

Grenada Guinea-Bissau Guyana Hong Kong Hungary Iran Ireland Israel Italy Jamaica Japan Kenya Kingdom of Serbia Kiribati Kuwait Latvia Lebanon Lithuania Luxembourg Macao Malagasy Republic Malay, Fed. States of Malay, Non-Fed. States of Mauritius Monaco Mozambique Nauru Netherlands Neuland Nigeria North Borneo Norway Palestine Papua New Guinea Paraguay 25/08/1924 28/05/1925 17/09/1925 08/04/1926

a a a s r a a(R) a r a r(R) a a a(R) a a a a s a a a a a a a(R) a(R) a a a a(R) a a(R) a

02/12/1930 02/02/1952 02/12/1930 02/06/1930 26/04/1966 30/01/1962 05/09/1959 07/10/1938 02/12/1930 01/07/1957 02/12/1930 02/12/1930 25/07/1969 04/04/2002 19/07/1975 02/12/2003 18/02/1991 13/07/1965 02/12/1930 02/12/1930 24/08/1970 15/05/1931 02/02/1952 04/07/1955 18/08/1956 02/12/1936 02/12/1930 02/12/1930 01/07/1938 02/12/1930 04/07/1955 22/11/1967

02/06/1931 02/08/1952 02/06/1931 01/07/1997 02/06/1931 26/10/1966 30/07/1962 05/03/1960 07/04/1939 02/06/1931 01/01/1958 02/06/1931 02/06/1931 25/01/1970 04/10/2002 19/01/1976 02/06/2004 18/08/1991 20/12/1999 13/01/1966 02/06/1931 02/06/1931 12/03/1968 15/11/1931 02/08/1952 04/01/1956 18/02/1957 02/06/1937 02/06/1931 02/06/1931 01/01/1939 02/06/1931 04/01/1956 22/05/1968

83

Peru Poland Portugal Romania Saint Lucia Saint Vincent and the Grenadines Sao Tome and Principe Sarawak Senegal Seychelles Sierra Leone Singapore Slovenia Solomon Islands Somalia Spain Sri Lanka St. Christopher-Nevis Sweden Switzerland Syrian Arab Republic Tanganyika Timores Tonga Trinidad and Tobago Turkey Tuvalu United Kingdom United States Yugoslavia Zaire 15/11/1924 23/06/1925 10/04/1926 25/08/1924 12/03/1925 22/08/1925

a r a r a a a a a a a a(R) s a a r a a a a(R) a a(R) a a a a a r(R) r(R) r a

29/10/1964 26/10/1936 24/12/1931 04/08/1937 02/12/1930 02/12/1930 02/02/1952 03/11/1931 14/02/1978 02/12/1930 02/12/1930 02/12/1930 15/05/1996 02/12/1930 02/12/1930 02/06/1930 02/12/1930 02/12/1930 01/07/1938 28/05/1954 01/08/1974 03/12/1962 02/02/1952 02/12/1930 02/12/1930 04/07/1955 02/12/1930 02/06/1930 29/06/1937 17/04/1959 17/07/1967

29/04/1965 26/04/1937 24/06/1932 04/02/1938 02/06/1931 02/06/1931 02/08/1952 03/05/1932 14/08/1978 02/06/1931 02/06/1931 02/06/1931 25/06/1991 02/06/1931 02/06/1931 02/06/1931 02/06/1931 02/06/1931 01/01/1939 28/11/1954 01/02/1975 09/12/1963 02/08/1952 02/06/1931 02/06/1931 04/01/1956 02/06/1931 02/06/1931 29/12/1937 17/10/1959 17/01/1968

END OF DOCUMENT

84

START OF DOCUMENT
PROTOCOL TO AMEND THE INTERNATIONAL CONVENTION FOR THE UNIFICATION OF CERTAIN RULES OF LAW RELATING TO BILLS OF LADING, 1968

Parties Argentina Australia Belgium Cameroon Canada China, Republic of Croatia Denmark Ecuador Egypt, Arab Republic of Finland France Georgia Greece Holy See Hong Kong Ireland Italy Japan Latvia Lebanon Liberia Lithuania Luxembourg Mauritania Mexico Netherlands

Date of signature 23/02/1968 23/02/1968 26/04/1968 23/02/1968 23/02/1968

Instr of Date of deposit

Date of entry into force 16/10/1993 06/12/1978

a r

16/07/1993 06/09/1978

a 20/11/1975 r a 04/06/1973 23/02/1968 04/12/1968 23/02/1968 23/02/1968 s a 23/02/1968 r(R) a a a 23/02/1968 a a 23/02/1968 a 05/02/1979 r(R) r(R) r r a a

28/10/1998 20/11/1975 23/03/1977 31/01/1983 01/12/1984 10/03/1977 20/02/1996 23/03/1993

28/01/1999 23/06/1977 23/06/1977 30/04/1983 01/03/1985 23/06/1977 20/05/1996 23/06/1993 01/07/1997

15/04/1998 22/08/1985 01/03/1993 04/04/2002 19/07/1975 02/12/2003 18/02/1991 20/05/1994 26/04/1982

15/07/1998 22/11/1985 01/06/1993 04/10/2002 23/06/1977 02/06/2004 18/05/1991 20/08/1994 26/07/1982

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Neuland New Zealand Norway Paraguay Philippines Poland Russian Federation Singapore Spain Sri Lanka Sweden Switzerland Syrian Arab Republic Tonga United Kingdom United States Uruguay Zaire

23/02/1968 13/04/1973 30/04/1968 23/02/1968 23/02/1968

r a r

09/12/1974 20/12/1994 19/03/1974

23/06/1977 20/03/1995 23/06/1977

r(R) a(R)

12/02/1980 25/04/1972 06/01/1982 21/10/1981 09/12/1974 11/12/1975 01/08/1974 13/06/1978 01/10/1976

12/05/1980 29/07/1999 23/06/1977 14/02/1984 21/01/1982 23/06/1977 23/06/1977 23/06/1977 13/09/1978 23/06/1977

23/08/1972 23/02/1968 23/02/1968

r a r r a a

23/02/1968 23/02/1968 23/02/1968 23/02/1968

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START OF DOCUMENT

Independent Fire Investigation Consultants

SUMMARY REPORT INTO THE FIRE ON BOARD THE VESSEL "ALPHA STAR" 27 JULY 2005 Our Ref. A/STAR/27/007-01* Your Ref. Not known. * Please state our reference on all correspondence between the parties.

Blue Sky Holdings Inc. Level 22 80 Greater South Street Panama City Panama

Dear Sirs, We refer to your instructions and trust you find our report to your satisfaction. Should you have any questions please do not hesitate to contact our principal surveyor Mr Stanley Schnider.

SUMARY REPORT INTO THE FIRE ON BOARD THE VESSEL "ALPHA STAR" 27 JULY 2005 Summary Data Vessel: Description: Cargo Tanks: Cargo on Board: Port: Shore Lines: "Alpha Star" As per charterparty dated 10 January 2005 20 (non pressurised and cargo is refrigerated) As per Bill of Lading dated 11 July 2005 Makai Port, Neuland (i) One steel 8 inch liquid receiving line and on (ii) One steel 8 inch vapour return line Terminal connection: Flanged rubber hoses Reducers: 10 inch (ship) to 8 inch (shore) Checklists: (i) Before Discharge agreement - completed

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(ii) Pre-Discharging Safety Checklist (industry standard) - completed (iii) Before Discharge Agreement (industry standard) - completed Investigation 1. Executive Summary i. From my review of the available documents and material it is my opinion that the fire was caused by the negligent ignition of a very large cloud of vaporised liquid petroleum gas which leaked from the flanged manifold of the "ALPHA STAR". Given the layout of the reducer, the leak occasioned from the 8 inch side of the reducer.

2. Tender Documents & Charterparty i. The time charterparty dated 10 January 2005 between Blue Sky Holdings and Far East Maritime Petroleum Company does not list any cargo capacities in the vessel's description. From my review of the vessel's plans it is noted that the vessel has 10 cargo tanks of equal size and arranged 1 to 5 port and starboard. The bill of lading dated 11 July 2005 confirms that 4,491.334 tonnes of LPG mix (75% butane, 25% propane) was loaded on board the "Alpha Star". This is to be seen against the tender documents which invite bids for the supply of LPG cargoes having a mixture of between 20 and 25% propane and 75 to 80 % butane.

ii.

3. Cargo Properties i. Liquefied Petroleum Gas ("LPG") is a saturated hydrocarbon containing mixtures of butane and propane. the cargo loaded on board the "Alpha Star" under the above referenced Bill of Lading was a mixture of about 75% butane (C4) and about 25% propane (C3). The density stated on the Bill of Lading is said to be 0.5584 kg/cm3 at 60 degrees Fahrenheit, or 15.56 degrees Celsius. A liquefied gas is the liquid form of a substance which otherwise at ambient temperature and atmospheric pressure would exist in a gaseous state. Most liquefied gases are hydrocarbons, which means they are inherently hazardous and dangerous. It necessarily follows that all practical steps are taken to minimise the chance of leakage and to limit all sources of ignition when they are being transported or otherwise handled in bulk form. LPG is a colourless liquid and odourless unless an additive is included in it so as to make it responsive to human smell receptors.

ii.

iii.

4. Release of Liquefied Gases i. When a liquefied gas under pressure is initially spilled, even though it may be close to ambient temperature, it will behave differently to fully-refrigerated liquefied gases at low pressure. At the high-pressure liquid is released, it quickly falls to ambient pressure. This results in extremely rapid vaporisation of the liquid, with the heat required for this change of state being taken primarily from the liquid itself. This is called flash evaporation and, depending on the change in pressure, much of the liquid may flash-off into gas. Any remaining liquid is cooled rapidly to its refrigerated temperature, or even lower, at

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atmospheric pressure. High-pressure liquids escaping this way cause much of it to spray into the atmosphere as small droplets. These droplets take heat away from the atmosphere and condense the water vapour in the air to form a white, visible cloud. The liquid droplets vaporise into gas, which causes further cooling and maintains the white cloud formation for longer. The vapour mixes with the air, causing it to become flammable. 5. Flammability Range i. The flammability range is the range between the minimum and maximum concentrations of vapour (as a volume percentage) in air which will form a flammable mixture. The lower and upper limits are usually abbreviated to LFL and UFL. The flammable ranges for propane and butane in air are roughly equivalent, and can be considered to be between about 1.5% and 9.5% gas to air. That is, concentrations above about 10% of gas to air are classed as being too-rich and will not ignite. Similarly, concentrations below about 1% are considered too lean. Should a liquefied gas be spilled into an open area, the liquid will rapidly evaporate and produce a vapour cloud which gradually disperses downwind. The region immediately adjacent to the spill area is non-flammable because it is over-rich: that is, it contains too loaw a percentage of oxygen to be flammable.

6. The Terminal i. It is understood from various correspondence that the jetty the site of the discharge in question is not a designated LPG terminal. There exists a single manual shut-off valve on both the liquid and vapour lines, together with an automatic non-return valve on the liquid line. On the jetty there are two steel pipelines of 8 inch diameter. One of the pipelines is the liquid receiving line and the other is the vapour return line.

ii.

iii.

7. Shore Flexible Hoses i. Two certificated shore flexible hoses, one liquid and one for gas return were employed. The test certificates for these hoses have been cited and no defects noted.

ii.

8. The "Alpha Star" i. All gas tankers are fitted with emergency shut-down ("ESD") systems. At a number of locations around the vessel, electrical push-buttons, or in the case of the "Alpha Star", pneumatic dump valves, are provided. When tripped, these remotely close the liquid and vapour manifold valves and stop cargo pumps and compressors (where appropriate). The ESD system is required to be fail safe and a loss of control air pressure or electricity will cause the ESD system to trip and the valves to close. On board the "Alpha Star" the pneumatic ESD system can be manually tripped from the cargo control room, from each of the three cargo tank domes or from the port or starboard manifold. In addition, it is noted from the arrangement diagram for the ESD system in the

ii.

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vessel's operating manual that there was a facility to connect a shore side stop to the system, but it would appear that this was not in use at Makai Port. iii. In addition to the ESD system, the "Alpha Star" has fitted to it a closed circuit camera system ("CCTV") with a relay to the cargo control room and a central fire proof recording bank. This CCTV system is capable of recording 24 hours of footage on a record over loop basis.

9. Ship - Shore Interface and Checklists i. The ship - shore interface is the area where activities of personnel on a ship and shore overlap during cargo handling. It is considered the most hazardous area in gas tanker operations. The responsibility for cargo handling operations is shared between a ship and a terminal. The manner in which the responsibility is shared is normally agreed between them so as to ensure that all aspects of the operation are covered. Before and during operations procedures are put in place and jointly understood ship and shore personnel. This is normally achieved by the use of meetings and the 'ship/shore safety checklist' which is normally issued by the terminal representative to the master of the gas tanker. It would appear from the documents provided that the terminal did not employ a 'ship/shore safety checklist; the one being competed appears to have been issued by the vessel's Owners technical managers. We also note a 'Before Discharge Agreement Form' was completed.

ii.

iii.

10. The Incident i. The circumstances of the incident are brief and can be summarised shortly and further to our review of the CCTV footage retrieved from the vessel's recording bank. All footage of the cargo hose connection and the immediate moments of the fire were captured by the vessel's CCTV system. After commencing discharge operations, an initial small cloud of white gas is seen to escape from the vessel's rail side of the manifold reducer. At this time there is both a terminal employee and a vessel crew member standing by the manifold in attendance. Both the terminal employee and the crew member are seen to be in possession of portable radio's but neither attempts to report the small gas leak. The crew member, on seeing the white gas cloud is seen to step away from the manifold but does not otherwise attempt to activate the remote shut off device. The terminal employee is then seen to remove a spanner from his left overall pocket and approach the manifold reducer in way of the gas leak. As he is seen to bend over, a nonintrinsically safe metal cased torch is seen to fall from his top left hand overall pocket. As the torch is not intrinsically safe, it necessarily follows that the terminal did not comply with ISGOTT section 4.4.2.2 by not excluding non-intrinsically safe equipment from the vessel during cargo discharge operations.

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vii.

Just as the torch is seen to strike the manifold drip tray (the top edge of which is about 60 centimetres above the main deck) a large cloud of pressurised gas is seen to escape and cloud the entire manifold area. Moments after the gas cloud is seen to fill the CCTV screen (and by default the manifold area) a large bright orange flame (explosion) is seen to fill the CCTV screen. Seconds after this the CCTV screen stops recording.

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11. Cause of Cargo Leakage i. The leak was observed coming from the forward end of the reducer, or the 8 inch side (the same being supplied by the terminal and fitted on the vessel's rail side of the manifold). It necessarily follows that there was no damage, rupture or leakage in way of any of the vessel's cargo structures, fittings or pipe work. Similarly, there was no evidence or other indication of any damage or leakage in way of the shore side valves or fixed steel pipe work funning from the jetty up to the storage tanks. There was, on post examination, and after making allowance for the extensive fire damage, evidence that the reducer had grooving on its 8 inch face.

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12. Cause of Fire i. As both the terminal employee and the crew member present at the manifold at the material time both died as a result of the gas explosion or the ensuing fire (the Coroner's Report not being available to us at the time of writing this report) they are not able to give their versions of account. It necessarily follows that the evidence as to the explosion is primarily drawn from the CCTV footage. On this basis it is our opinion that the fire was most likely caused by a deficient reducer which permitted LPG gas to escape which was then ignited by the act of a terminal employee by having in his possession and use a non-intrinsically safe item of equipment which was permitted to make a spark when in the presence of an uncontrolled LPG cloud. We trust that the above report meets with your satisfaction. Yours sincerely.

ii.

IFIC
Independent Fire Investigation Consultants END OF DOCUMENT
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Quantum Marine Marine Fire Experts & Loss Adjusters

-------------------------------------------------------------------------------------------------------------To: Blue Sky Holdings Inc., Panama 01/08/2005 Dear Sirs, "ALPHA STAR" - Fire at Makai Port 27 July 2005. Having surveyed the above mentioned vessel at the port of Makai Port we advise in our opinion the vessel is a total constructive loss with a scrap hull value of USD $2.75 million.

Kind regards.

Quantum Marine
Doug Davies Snr. Principal Surveyor Quantum Marine

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FAR EAST MARITIME PETROLEUM TRANSPORT CO

Blue Sky Holdings Inc. Level 22 80 Greater South Street Panama City Panama Dear Sirs, "ALPHA STAR"

We write further to the charterparty dated 10 January 2005 between BLUE SKY HOLDINGS INC. of Panama and FAR EASTMARITIME PETROLEUM TRANSPORT COMPANY for the above named Vessel. As you aware, the Vessel was seriously damaged in a fire on 27 July 2005. As the Vessel has been declared a total constructive loss by Quantum Marine, to which we attach the referenced report, we hereby terminate the charterparty with effect from 12 noon (12.00pm) on 27 July 2005. Kind regards.

Ty Okada
For and on behalf of: Far East Maritime Petroleum Transport Company

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BLUE SKY HOLDINGS INC.

TO: FM: DATE: GLOBAL MARKET INSURANCE SYNDICATES COMPANY SECRETARY 10 August 2005

We hereby give you notice of abandonment of the vessel "ALPHA STAR" and kindly request you acknowledge receipt of the same. Kind regards.

Blue Sky Holdings

BLUE SKY HOLDINGS INC.

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GLOBAL MARKET INSURANCE SYNDICATES

Blue Sky Holdings Inc. Level 22 80 Greater South Street Panama City Panama 12 August 2005 We acknowledge receipt of your letter dated 10 August 2005 in which you purport to give notice of abandonment to us of your interest in the vessel "ALPHA STAR". Unfortunately, we are not able to accept your letter and hereby reject your notice of abandonment. Kind regards.

Tony Vallans
Tony Vallans Senior Claims Handler Global Market Insurance Syndicates

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BLUE SKY HOLDINGS INC.

Facsimile Transmission Our reference: Date: To: C.C. Subject: Facsimile Number: Fire onboard "ALPHA STAR" at Makai Port "ALPHA STAR" 02/04/2007 Neuland Petroleum Refinery Company Limited

Dear Sirs, We refer to the fire on board the "ALPHA STAR" and the subsequent constructive total loss of the said vessel and attach by way of service Owner's claim proceedings in this matter. For good order, hard copies of the same have been dispatched by courier to your office and marked for the attention of the Secretary, Neuland Petroleum Refinery Company Limited. Kind regards.

Blue Sky Holdings

BLUE SKY HOLDINGS INC.

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IN THE MATTER OF AN ARBITRATION HELD AT SINGAPORE BETWEEN Blue Sky Holdings Inc. Level 22 80 Greater South Street Panama City Panama Claimant AND Neuland Petroleum Refinery Company Ltd 48 King Street Makai City Neuland Respondent

No. AR/SING/18/10

PRELIMINARY SUBMISSIONS OF THE CLAIMANT 15 AUGUST 2010 The parties 1. At all material times Blue Sky Holdings Inc.: a. was a company incorporated under the laws of the Republic of Panama and carried on business at Level 22, 80 Greater South Street, Panama City, Panama b. carried on the business of a ship owner c. was the owner of the ALPHA STAR 2. At all material times Horizon Shipping Inc.: a. was a company incorporated under the laws of Neuland and carried on business at 48 King Street, Makai City, Neuland b. carried on the business of an oil importer c. was the holder of a bill of lading dated 11 July 2005 and bearing documentary credit number 7759AAQ2005964753 The bill of lading 3. By a bill of lading dated 11 July 2005 and bearing documentary credit number 7759AAQ2005964753, the Claimant shipped 4491.334 metric tons (in air) of LPG mixture on board the LPG carrier "Alpha Star". 4. The bill of lading expressly provided among other things as follows:

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"Notify at destination:

Neuland Petroleum Refinery Co Ltd Makai City, Neuland Tel: 8662934, Fax: 8662935

INCORPORATION Clauses 1-5 inclusive on the reverse side of this Bill of Lading are incorporated herein and form part of this Bill of Lading." 5. The standard form Far East Maritime Petroleum Transport Company bill of lading, which for the avoidance of doubt, the Claimant says that the Respondent is familiar with, contains on its reverse, among other things, the following terms: "5. LAW-ARBITRATION The contract evidenced by this Bill of Lading shall be governed by English Law and any disputes hereunder shall be determined in Singapore according to English Law to the exclusion of the jurisdiction of the Court of any other Country. Any and all differences and disputes arising out of this Bill of Lading, shall be decided by Arbitration in Singapore in accordance with the AMTAC Terms current at the time when the arbitration proceedings are commenced. The party demanding Arbitration shall notify the other party of the name of his Arbitration in writing at the Principal place of business of the party. The other party shall appoint his Arbitrator and notify the first party in us Principal place of business of the appointment of such Arbitrator. In the event that the party against whom the claim is being made does not appoint the Arbitrator within 21 days from receipt of notice, it shall be open to the first party to appoint his Arbitrators as Sole Arbitrator to hear and determine such disputes." 6. The Bill of Lading contains no incorporation of any charterparty. 7. The Bill of Lading contains no express provisions as to the mechanisms for discharge on its face. 8. It necessarily follows that the respective obligations of the Claimant (carrier) and Respondent (receiver) are to be derived from the implications that common law imposes. This includes, among others, that the discharge must be performed in accordance with the custom of the port, and in the absence of any such custom (which for the avoidance of doubt the Claimant says there is no such custom) then the Claimant (carrier) must bring the goods to the rail - or in the premises the vessel's manifold - and the Respondent (receiver) must take them from there. Facts and background material 9. Far East Maritime Petroleum Transport Company and Neuland Petroleum Refinery Company have a long history of business relationships; and the Far East Maritime Petroleum Transport Company is a regular supplier of gas cargoes to the Neuland Petroleum Refinery Company.

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10. In April 2005 Neuland Petroleum Refinery Company invited all interested parties to offer for the supply of 53,000 metric tonnes of LPG mixture plus or minus 25%. The supply period would run from May to October 2005. 11. On 10 April 2005 Far East Maritime Petroleum Transport Company, together with Brit Petroleum, submitted a joint response to the Neuland Petroleum Refinery Company tender invitation. 12. On 27 April 2005 Neuland Petroleum Refinery company wrote to the Far East Maritime Petroleum Transport Company confirming the Far East Maritime Petroleum Transport Company had been the successful tender. The letter provided, among others, that the bills of lading issued for each shipment must be dated not more than 10 days before the date of the arrival of the carrying vessel(s) to Makai port. 13. During the currency of a charterparty substantially on the SHELLTIME 4 format (as amended) between Blue Sky Holdings Ltd and Far East Maritime Petroleum Transport Company Ltd for the vessel Alpha Star and dated 10 January 2005 the charterers ordered the Alpha Star to load consignments of LPG mixture (Ratio C4 75PCT / C3 25PCT) on 12 May 2005, 12 June 2005 and 11 July 2005 for discharge at Makai Port, Neuland pursuant to an agreement to supply LPG gas between Far East Maritime Petroleum Company and Neuland Petroleum Refinery Company dated 27 April 2005. 14. On the first shipment made pursuant to the supply agreement and performed by the Alpha Glory, carried against a standard Far East Maritime Petroleum Transport Company bill of lading dated 12 May 2005, 4,500.497 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. 15. On the second shipment made pursuant to the supply agreement performed by the Asian Glory, carried against a standard Far East Maritime Petroleum Transport Company bill of lading dated 22 May 2005, 3,100.241 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. 16. On the third shipment made pursuant to the supply agreement performed by the Alpha Star, carried against a standard Far East Maritime Petroleum Transport Company bill of lading dated 12 June 2005, 4,500.513 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. 17. On the fourth shipment made pursuant to the supply agreement performed by the Asian Glory, carried against a standard Far East Maritime Petroleum Transport Company bill of lading dated 24 June 2005, 3,100.078 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. 18. On the fifth shipment made pursuant to the supply agreement performed by the Alpha Star, carried against a standard Far East Maritime Petroleum Transport

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Company bill of lading dated 11 July 2005, 4,491.334 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. Specifically, on the fifth shipment, the bill of lading was first endorsed on the reverse side in the first instance to Horizon Bank PLC and in the second from Horizon Bank PLC to Neuland Petroleum Refinery Company. 19. On the sixth shipment made pursuant to the supply agreement performed by the Titan Gas II, carried against a standard Far East Maritime Petroleum Transport Company bill of lading dated 26 July 2005, 3,100.338 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. 20. On the seventh shipment made pursuant to the supply agreement performed by the Asian Glory, carried against a standard Far East Maritime Petroleum Transport Company bill of lading dated 11 August 2005, 3,100.090 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. 21. On the eighth shipment made pursuant to the supply agreement performed by the Asian Glory, carried against a standard Far East Maritime Petroleum Transport Company bill of lading dated 21 August 2005, 3,100.262 metric tons (in air) was delivered by Far East Maritime Petroleum Company to and received by Neuland Petroleum Refinery Company. Breach 22. In breach of contract and/or duty, the Respondent failed to take reasonable care in and about the discharge of the cargo carried under the bill of lading dated 11 July 2005 (and detailed in paragraph 3 above) which in turn resulted in a serious fire and the constructive total loss of the vessel. Particulars a. They failed to take reasonable care to supply a suitable manifold reducer. b. They failed to maintain the manifold reducer in a proper condition. c. They failed to inspect the manifold reducer prior to it being fitted to the vessel. d. The failure to take reasonable care to supply a suitable manifold reducer in a proper condition to facilitate the discharge of LPG, together with the actions of a terminal representative, was the dominant cause of the fire. Loss and Damage 23. By reason of the Respondent's breach of contract and/or duty, the Claimant has suffered losses, both actual and contingent, and been exposed to liability.

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Particulars a. Loss of the vessel The market value of the vessel was USD $8,100,000 at the time of the incident and is now estimated to be USD $2.75 million. b. Loss of use of the vessel The vessel was fixed to the Far East Maritime Petroleum Transport Company for a period of 12 months at a charter rate of USD $285,000 per calendar month. The charterparty was terminated at noon (12.00pm) on 12 June 2005 pursuant to clause 20 of the charterparty. The earliest date for redelivery was 1 March 2007. It follows that the Claimant Owners have lost the use of the vessel for a period of 263 days. Owners have therefore suffered a loss of USD $2,498,500 at the rate of hire of USD $285,000 per calendar month. Allowing for operating costs of USD $5,000 per day (or USD $1,315,000), the Claimant Owners have suffered a net loss of USD $1,183,500 ($2,498,500 - $1,315,000). c. Contingent losses i. Contingent losses suffered by the Claimant for proceedings brought by various parties related to the families of the deceased terminal representative (USD $2,870,150) and crew member (USD $1,350,200) and for which no final determination has been made. Claims by the Makai Port Corporation for maintenance works and salvage services totalling USD $5,500,000. Claims by Makai Maritime Authority for harbour and anchorage dues totalling USD $202,490.

ii.

iii.

Interest 24. Further, the Claimant claims compound interest pursuant to section 49 of the Arbitration Act 1996 (UK), on such sums as are found due to it, for such period(s) and at such rates(s) as the Tribunal shall think fit. AND THE CLAIMANT CLAIMS: 1. Damages, in respect of their actual losses. 2. A declaration that they are entitled to indemnification (and or damages amounting to an indemnity) in respect of: a. the claims made against them by third parties; and

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b. the future running expenses incurred for the vessel as a result of the incident. 3. The aforesaid interest; and 4. Costs.

Counsel for the Claimant

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IN THE MATTER OF AN ARBITRATION HELD AT SINGAPORE BETWEEN Blue Sky Holdings Inc. Level 22 80 Greater South Street Panama City Panama Claimant AND Neuland Petroleum Refinery Company Ltd 48 King Street Makai City Neuland Respondent

No. AR/SING/18/10

PRELIMINARY SUBMISSIONS OF THE RESPONDENT 29 AUGUST 2010

1. For ease of reference, save where otherwise indicated, the Respondent adopts in these Defence Submissions the definitions used in the Claim Submissions. Save where the contrary is stated, all references to paragraph numbers are to the paragraphs of the Claim submissions. 2. Paragraphs 1 and 2 are admitted. 3. The Respondent denies the Claimants right to bring these proceedings and the Arbitral Tribunals power to hear them on the basis that: a. the Bill of Lading dated 11 July 2005 has no actual printed clauses on its reverse or back page. For the avoidance of doubt, the Respondent says that this includes the clauses identified as "Clauses 1 - 5" as referred to in paragraph 4 of the Claimant's submissions; and b. clause 5, which the Claimant says is a Law-Jurisdiction clause, and sets out in detail in paragraph 5 of their submission, is not, and never has been on the reverse of the Bill of Lading dated 11 July 2005; further and/or alternatively

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c. as a consequence of sub-paragraphs (a) and (b) above, the Bill of Lading does not contain a law and jurisdiction clause. 4. Save for subparagraphs 3(a), (b) and (c) above, if the Arbitral Tribunal concludes that the proceedings are valid, paragraphs 1 to 3 are admitted. 5. Save that it is denied that the "Incorporation" clause as detailed in paragraph 4 of the Claim submissions was incorporated on the reverse side of the Bill of Lading, paragraph 4 is admitted. 6. The Respondent admits that the standard form Far East Maritime Petroleum Transport Company bill of lading contains on its reverse a "LAWARBITRATION" clause as detailed in paragraph 5 of the Claim Submissions but denies that it is, or ever was, familiar with the standard form Far East Maritime Petroleum Transport Company bill of lading. 7. Paragraph 6 and 7 are admitted.

8. Paragraph 8 is denied and the Respondent says that all standard form checklist items, namely the: (i) (ii) Before Discharge agreement Pre-Discharging Safety Checklist

(iii) Before Discharge Agreement as provided by the Claimant, were inspected, checked by both the Claimant and the Respondent's representatives and signed as being satisfactory and correct. 9. Save that it is denied that the referenced shipments were carried against a standard Far East Maritime Petroleum Transport Company bill of lading, paragraphs 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 are admitted. 10. It is denied that the Respondent failed to take reasonable care in and about the discharge of the cargo. Particulars The Duty imposed on the carrier by Art III rule 2 of the Hague-Visby Rules is restricted to the care of the cargo. That is, the Claimant carrier must take care of the cargo, including its discharge until delivered to the person legally entitled to receive the cargo. That is, and for the avoidance of doubt, the Claimant carrier is responsible for the care of the cargo until the point of transfer which the Respondent says is at the vessel's rail. 11. It is denied that the Owners are entitled to the relief claimed or any relief.

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Counterclaim 1. The Claimant breached its contractual obligation to deliver the goods described on the face of the Bill of Lading dated 11 July 2005 2. As a consequence of the Claimant's breach of contract, the Claimant is liable to the Respondent for damages to be assessed by the Tribunal including: (iv) The value of the goods at the time for delivery at Makai Port on 12 June 2005, less the cost of freight and insurance; (v) loss of profit calculated on the retail sale of the LPG; and

(vi) additional costs incurred by way of penalties incurred by the Respondent for failure to supply third parties as a consequence of the Claimant's failure to supply the LPG. AND THE RESPONDENT SEEKS: 1. An order that the Claimant breached its contractual obligation to deliver the cargo; and 2. The Claimant pay damages to be assessed.

Counsel for the Respondent

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