Common use of Vetting Clause in Contracts

Vetting. During the period of this charter, Charterers require Owners to endeavor to arrange for at least four of the following oil company inspections/approvals at their time and expense: BP, Shell, Exxon/Mobil, Chevron Corp., ▇▇▇▇, PDVSA, Statoil and Dreyfus. Charterers may request Owners to obtain other vetting approvals as/when required, and Owners shall do so. The above is always subject to the vessel’s trading pattern, ports accessibility, the oil company’s interest in the vessel and the availability of inspectors at the time, all of which Owners will keep a record of and keep Charterers advised. Charterers shall keep Owners fully informed of the vessels forward schedule in order to facilitate vetting inspections. If the vessel, during the period of this charter, fails to obtain a minimum of four approvals because of Owners fault/negligence, or fails a physical inspection by any company listed above, or loses a vetting approval required to maintain the vessels’ trading pattern, then, Owners shall have a period of forty five (45) days from the date Owners are notified of such non-acceptance to have the vessel obtain such minimum number of approvals or reinstate such approval, subject always to the vessel’s trading pattern, ports accessibility, the oil company’s interest in the vessel and the availability of inspectors at the time, all of which Owners will keep a record of and keep Charterers advised. If the Owners do not obtain the minimum number of vetting approvals or the necessary vetting approval is not reinstated as provided for in the preceding paragraphs, and the lack of vettings affect the vessel’s trading pattern, then the Charterer shall have the right (i) to terminate this charter party without penalty to either party, or, (ii) to place the Vessel off-hire for any loss of time (whether by way of interruption in the Vessel’s service, including time necessary for re-positioning to an alternate trading pattern or otherwise)(a) resulting from the vessel being placed off hire by a pool in which it is entered due to such lack of vetting, or (b)otherwise due to such lack of vetting. In the event the preceding paragraph is invoked, and the Charterer does not terminate the Charter, it shall use commercially reasonable efforts to employ the Vessel in an alternate trading pattern to maximize its earning capacity on commercially reasonable terms provided that the terms of the pool it is entered into or the time charter it is operating under permit the Charterer to do so. For each day the Vessel is operating under a subcharter on such alternate trading pattern, and not otherwise off hire, if the Basic Hire rate otherwise applicable pursuant to this Charter exceeds the time charter rate or equivalent rate obtained by the Charterer on its sub-charters in the alternate trading pattern, then the Basic Hire payable hereunder shall be reduced by an amount equal to the difference between (a) the Basic Hire rate and (b) the time charter rate or equivalent rate obtained by the Charterer on its sub-charters in the alternate trading pattern until the later of (i) the date the Vessel has re-obtained the minimum number of vetting approvals or the necessary vetting approval has been reinstated, and (ii) the last day of the applicable sub-charter.