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Maritime Security Clause for Time Charters

15 July 2011

1. Owner’s obligations

The Owner shall comply with obligations imposed upon it or the vessel under the International Code for the Security of Ships and of Port Facilities (“the ISPS Code”) and any other laws and regulations relating to the security of vessels and ports, as in force and of mandatory application to the vessel at the date of this charter. The ISPS Code and the aforesaid laws and regulations shall hereafter be referred to collectively as “the Relevant Security Regulations”. The Owner shall upon request promptly provide the Charterer with

  (a) a copy of the International Ship Security Certificate issued under the ISPS Code

  (b) the identity and contact details of the Company Security Officer.

2. Charterer’s obligations

The Charterer shall promptly provide the following information so that the Owner may comply with any requirements arising in relation to the application of the Relevant Security Regulations or any other applicable security regulations that come into force after the date of this charter ("Other Security Regulations"), including any measures which may be required by any port facility or relevant authority:

  (a) the identity and contact details of all parties to any contracts relating to the Vessel and her employment where such contracts have been entered into by the Charterer, by any sub-charterer, or by any agents appointed by them, or in the name of the Owner at the direction of the Charterer or any sub-charterer,

  (b) the identity and contact details of any personnel (other than those directly employed by the Owner), and employers or principals thereof, on or about the Vessel pursuant to this charterparty or any other contracts referred to in sub-clause (a) above, and

  (c) any other relevant information relating to the Vessel’s cargo or its employment requested by the Owner.

3. Loss of Time

Notwithstanding any other provision in the charterparty, hire shall remain payable in respect of any time loss arising in relation to the application of the Relevant Security Regulations or other Security Regulations, including any measures required by any port facility or relevant authority.

Hire shall not be payable in respect of time lost due to Owner’s failure to comply with obligations imposed upon it or the Vessel under the Relevant Security Regulations, unless such failure is attributable to a breach by the Charterer of its obligations under this or any other term of the charterparty.

4. Costs, Losses and Liabilities

Any costs, expenses, losses and liabilities which may be incurred by the Owner in relation to the application of the Relevant Security Regulations or Other Security Regulations, including any measures required by any port facility or relevant authority, shall be for the Charterer’s account, unless the costs, expenses, losses or liabilities result from

  (a) the Vessel’s non-compliance with any ship security plan required by the Relevant Security Regulations, the costs of compliance with any such plans being for the Owner’s account,

  (b) the Owner’s failure to comply with obligations imposed upon it or the Vessel under the Relevant Security Regulations, or

  (c) the Owner's breach of this Charter.

5. Trading to Non-ISPS Compliant Ports

In the event of the vessel being ordered to sail to any port facility which is not listed on the ISPS Code Database as having an approved Port Facility Security Plan:

  (a) the Owner shall be entitled to implement any security measures it may reasonably deem necessary to protect the Owner’s interests, the vessel and its cargo. Any costs, expenses, and delay arising in relation to the implementation of such security measures shall be for the Charterer’s account

  (b) notwithstanding (a) above, the Charterer shall indemnify the Owner in respect of any losses and liabilities of whatsoever nature arising in relation to the vessel calling at any such a port facility.

Nothing in this sub-paragraph shall prejudice the Owner’s position under any terms of the charterparty relating to the employment of the vessel, including those relating to trading limits and the nomination of safe ports and berths.

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