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This Agreement is made and executed this ______day of _____at the _______________________, Philippines by and between: F. F CRUZ SHIPPING CORPORATION, a corporation duly organized and existing under and by virtue of the laws of the Philippines, with business address at Lapuz, Iloilo City , herein represented by its President, ERIC A. CRUZ, hereinafter referred to as the OWNER. ---And--_______________________________________________________________________, a corporation duly organized and existing under and by virtue of the laws of the Philippines, with business address at _____________________________________________________________, Philippines, herein represented by _____________________________________________________, hereinafter referred to as the CHARTERER. Recitals 1. The OWNER is a construction company which owns, maintains and operates marine vessel consisting: a Tugboat with the particulars as follows: Vessel Name Year Built Registry LOA Breadth Depth GRT/NRT BHP ratings

Manila, Philippines

2. And likewise, OWNER also owns, maintains and operates a deck-barge with particulars as follows: Vessel Name Year Built Registry LOA Breadth Depth GRT/NRT Ramp Opening: Width : Length

Manila, Philippines

3. CHARTERER desires to charter the equipment, while the OWNER has agreed to enter into a time charter contract over the said vessels to be used in the _______________________________________________________________________. NOW, THEREFORE, for and in consideration of the foregoing premises, the parties hereby agree as follows:

1.0 1.1

OBLIGATIONS OF THE CHARTERER CHARTERER hereby charters, hires and contracts the vessels as described above from the OWNER for purpose of operating within the limits of (Described the area or location of operation)for use on its (Described the type of operation to be done for the duration of time charter). This Agreement shall be for a period of 30-days commencing from___, 2011 to subject to monthly extensions at prevailing market rate under the same terms and conditions at mutual option of both parties. However, notice of renewal of charterer and advance payment should be given fifteen (15) days prior to expiration of this charter party. Failure of the Charterer to renew in writing said extension giving the right to the OWNER to pull out from the area of operation without any obligation whatsoever to the CHARTERER. CHARTERER agrees to pay OWNER the lump sum rate of _______ ______________________________________________________________ (Php 0,000,000.00) per month, without to the prejudice to the OWNERS outright termination of said Agreement if CHARTERER fails to comply in full payment terms herein mentioned with the consequence of outright pulling out from project area of the marine vessels subject matter hereof. No reduction of lump sum amount is allowed any day (s) the vessel is unused less than Thirty (30) days. CHARTERER agrees to hire a third party to conduct a condition survey at the time of delivery and the OWNER upon re-delivery of the vessel. The results of such survey shall be binding on both parties. Any variance on condition due to damages from these condition surveys shall be repaired at CHARTERES account and expense. Upon signing of this Contract, Charterer is deemed to have accepted and satisfied with the seaworthiness and operational aspect of the vessel and equipment. All fuel, lube oil and lubricants (POL) requirement, fresh water, port charges, cargo insurance or other needs of the cargo during the existence of this Agreement shall be for the account of CHARTERER. CHARTERER shall return the same volume of POL and fresh water to the vessel upon redelivery as when it was chartered. CHARTERER shall be responsible for providing safe berthing facilities whenever they are required to berth in an area. Further, CHARTERER government agencies for the vessel where it can load and discharged its cargoes safely and smoothly. Should the vessel prevented from berthing by reason or circumstances attributable to the fault of CHARTERER or to force majeure and/or other perils of the sea or any others delays attributable to CHARTERER, the latter shall bear the loss and/or consequential damages. CHARTERER agrees that the vessel shall be employed in lawful trade for the carriage of lawful cargoes only between good and safe ports to or from the (Described the area of operations). Insurance of cargo and cost of freight shall be at the expense of the CHARTERER. OWNERs shall be free from any liability for the partial and/or total loss of the cargoes onboard the vessel due to mishaps or accidents, including but not limited to, force majeure, delay, or negligence whatsoever and whomsoever caused. CHARTERER shall re-deliver or return the vessel to owner at the berthing area designated by the OWNER at the end of the contract.









2.0 2.1

OBLIGATIONS OF OWNER OWNER hereby warrants that the vessel is seaworthy and complies with the safety standards imposed by the Philippine Government. It shall likewise be responsible for all permits, including the Coast Guard pertaining to the vessel and its operations. OWNER shall ensure that the vessel is duly manned and capable of operating twenty (24) hours a day, seven (7) days a week. Consequently, all salaries, wages and other benefits necessary and as imposed by the government shall be the sole responsibility of OWNER. At no instance shall the employees and crew of OWNER be considered employees of CHARTERER. In addition, OWNER must ensure that its crew has proper personal protective equipments. SUSPENSION OF HIRE, ETC. In the drydocking or other necessary measures to maintain the efficiency of the vessel, deficiency of men or OWNERs stores, breakdown of machinery, damage to hull or other accident, either hindering or preventing the working of the vessel and continuing for more than twenty-four consecutive hours, no hire shall be paid respect of any time lost hereby during the period in which the vessels is unable to perform the service immediately required. Any hired paid in advance shall be adjusted accordingly. In the event of the vessel being driven into port or to anchorage through stress or weather, trading to shallow harbors or to rivers or ports with sand bar or suffering an accident to her cargo, any detention and/or expenses resulting from such detention shall be for the CHARTERs account even if such detention and/or expenses, or the cause by reason of which either is incurred, be due to, or be contributed to by, the negligence of the OWNERs servants. Standby time or delays caused by force majeure like typhoon and the like, or repairs on the deck resulting from damages caused by loading and unloading of the cargo or any other operation involving then project are not deductible from the monthly rental. Engine repair of the tugboat in excess of the twenty-four (24) hours for any single event shall caused the extension of the monthly charter hire equivalent to the actual down time. Should the vessel lost or missing, hire shall cease from the date when she was lost. If the date of loss cannot be ascertained, half hire shall be paid from the date the vessel was lost reported until the calculated date of arrival at the destination. Any hire paid in advance shall be adjusted accordingly.


3.0 3.1




It is understood that this agreement is enforceable only when signed, accepted and delivered by the CHARTERER to the OWNER by the 9 March 2010. 4.0 4.1 MASTER The master shall prosecute all voyages with the utmost dispatch and shall render customary assistance with the vessels crew. The master shall be under the orders of the CHARTERERs as regards employment, agency, or other arrangements. The CHARTERER shall indemnify the OWNER against all consequences or liabilities arising from the Master, officers or agents signing Bills of Lading or otherwise complying with such orders, as well as from any irregularity in the vessels papers or for over-carrying goods.


The CHARTERER shall furnish the Master with all instruction and sailing directions and the Master shall keep full and correct logs accessible to the CHARTERER or their agents. NON-LEIN AND IDEMNITY CHARTERER shall indemnity and hold OWNER free and harmless against liability or lien arising out of the operation of the vessel during the effectivity of this Agreement.



DISPUTE RESOUTION This Agreement shall be governed in all respects by the law of the Philippines. All disputes arising out of or in connection with this Agreement shall be exclusively governed and settled under the Philippines Rules of Arbitration being conducted during the validity of this Agreement. Hence, the OWNER shall not be authorized to suspend or withhold the use of the vessel to the CHARTERER without justifiable cause.

IN WITNESS WHEREOF, the parties have signed this Agreement at the date and place above-written.

F.F. SHIPPING CORPORATION ________________________ Owner


ERIC A. CRUZ President

SIGNED IN THE PRESSENCE OF _________________________________ ______________________________



BEFORE ME, a Notary Public for and in the City of ______________________ personally appeared: Name ________________ ____ __________________ _____________________ __________________ Passport Number _______ ____________ Date/Place Issued

IN WITNESS WHREOF, I have affixed my signature and seal this __________ day of _______________, 2011 at the City of __________________, Philippines.

Doc. No. _____________ Page No. _____________ Book No._____________ Series of 2011.