Common use of CHARTER HIRE Clause in Contracts

CHARTER HIRE. 9.1 The Charterer shall pay to the Owner for the hire of the Vessel, the net bareboat hire (“Charter Hire”) of; a. US$ 305,500 per day for the first twelve month period from commencement of Charterer’s earning of ordinary day rate from Esso under the Esso Drilling Contract. b. US$ 332,000 per day after period under a) has come to an end until expiry or termination of this Charter. c. For the duration of this charter under the Assignment Contract, the Charter Hire will be modified to US$ 278,600 from commencement of Charterer’s earning ordinary dayrate upon arrival in Canada. d. Esso has agreed to compensate the Assignee for moving the Vessel from Vietnam to Canada, for the costs of modification to the Vessel preparing it to work in Canada, and for the costs to supply additional equipment on the Vessel. This compensation is referred to as the “mobilization fee” in the Assignment. The net financial result of the mobilisation fee (after deduction of all relevant costs) will be split by 90% to Charterer and 10% to the Assignee. The net mobilization fee received by Charterer will then further be split by 90% to Owner and 10% retained by Charterer. The reduced rate Charter Hire under a) takes into consideration anticipated lower economic utilisation of the Vessel due to required fine-tuning of the Vessel’s equipment to get the Vessel fully operational. 9.2 Charterer agrees to be liable for all taxes or withholdings of any nature whatsoever, together with any penalties or interest thereon (herein collectively called “Taxes”) imposed upon, withheld from or assessed against Owner or Charterer by any national or local government or taxing authority of any country upon or with respect to or measured by income or earnings of the Vessel or the Charter Hire. Charterer shall not be liable for any Taxes which (i) are imposed by the government of the country under which the Owner is organized or any political subdivision thereof and are imposed upon or in respect of or measured by the Charter Hire or (ii) shall result wholly from action taken by the Owner not related to the transactions contemplated hereby or (iii) are imposed for any period, or with respect to any act, occurring after expiration or earlier termination of this Charter. Upon request of Owner, Charterer agrees to cooperate reasonably with Owner to minimize taxes to be borne by Owner, and, upon request of Charterer, Owner agrees to cooperate reasonably with Charterer to minimize Taxes to be borne by Charterer. Charterer will deduct any applicable withholding tax impost during international operations for any compensation paid under this Charter. Accordingly Charterer shall provide appropriate receipts for any such withholding tax. 9.3 Charter Hire shall be payable monthly in arrears in United States Dollars and shall be paid immediately following receipt by the Charterer of charter hire under the Esso Drilling Contract and in any event within five (5) calendar days after expiration of the month for which the Charter Hire is applicable. Unless otherwise agreed between the parties, Charter Hire shall be paid by means of wire transfer of funds in accordance with instructions provided by Owner.

CHARTER HIRE. 9.1 The Charterer Subcharterer shall pay to the Owner Charterer for the hire of the Vessel, the net bareboat hire (“Charter Hire”) of; a. US$ 305,500 304,100 per day for the first twelve month period from commencement of ChartererSubcharterer’s earning of ordinary day rate from Esso under the Esso Drilling Contract. b. US$ 332,000 per day after period under a) has come to an end dayrate upon arrival in Canada until expiry or termination of this Charter. c. For the duration of this charter under the Assignment Contract, the Charter Hire will be modified to US$ 278,600 from commencement of Charterer’s earning ordinary dayrate upon arrival in Canada. d. b. Esso has agreed to compensate the Assignee for moving the Vessel from Vietnam to Canada, for the costs of modification to the Vessel preparing it to work in Canada, and for the costs to supply additional equipment on the Vessel. This compensation is referred to as the “mobilization fee” in the Assignment. The net financial result of the mobilisation fee (after deduction of all relevant costs) will be split by 90% to Charterer and 10% to the AssigneeSubcharterer. The net mobilization fee received by Charterer will then further be split by 90% to Owner and 10% retained by Charterer. The reduced rate Charter Hire under a) takes into consideration anticipated lower economic utilisation of will only be payable when the Vessel due to required fineis operational. Charter Hire will not be payable during periods of dry-tuning of the Vessel’s equipment to get the Vessel fully operationaldocking or technical downtime. 9.2 Charterer Subcharterer agrees to be liable for all taxes or withholdings of any nature whatsoever, together with any penalties or interest thereon (herein collectively called “Taxes”) imposed upon, withheld from or assessed against Owner Charterer or Charterer Subcharterer by any national or local government or taxing authority of any country upon or with respect to or measured by income or earnings of the Vessel or the Charter Hire. Charterer Subcharterer shall not be liable for any Taxes which (i) are imposed by the government of the country under which the Owner Charterer is organized or any political subdivision thereof and are imposed upon or in respect of or measured by the Charter Hire or (ii) shall result wholly from action taken by the Owner Charterer not related to the transactions contemplated hereby or (iii) are imposed for any period, or with respect to any act, occurring after expiration or earlier termination of this Charter. Upon request of Owner, Charterer agrees to cooperate reasonably with Owner to minimize taxes to be borne by Owner, and, upon request of Charterer, Owner Subcharterer agrees to cooperate reasonably with Charterer to minimize taxes to be borne by Charterer, and, upon request of Subcharterer, Charterer agrees to cooperate reasonably with Subcharterer to minimize Taxes to be borne by ChartererSubcharterer. Charterer Subcharterer will deduct any applicable withholding tax impost during international operations for any compensation paid under this Charter. Accordingly Charterer Subcharterer shall provide appropriate receipts for any such withholding tax. 9.3 Charter Hire shall be payable monthly in arrears in United States Dollars and shall be paid immediately following receipt by the Charterer Subcharterer of charter hire under the Esso Drilling Contract and in any event within five (5) calendar days after expiration of the month for which the Charter Hire is applicable. Unless otherwise agreed between the parties, Charter Hire shall be paid by means of wire transfer of funds in accordance with instructions provided by OwnerCharterer.