ANNEX A - SCHEDULE OF COSTS

ANNEX A – SCHEDULE OF COSTS

The CHARTERERS shall pay monthly in arrears HIRE for the use of the VESSEL, its crew and all those
things required to be provided by the OWNERS under the terms of the CHARTER PARTY that shall be
calculated in accordance with Table 1 till Table 8 below (the HIRE rate) per day or pro-rata for part thereof
for the Period of HIRE (Note: OWNERS to provide breakdown of all Tables in this Annex A and tables in
excel attachment 1a,1b,1c & 1d ).

The cost of the CHARTER of the VESSEL will comprise:

i) Charter HIRE Rate

ii) Mobilisation fee

iii) Demobilisation fee

v) Long-Term CHARTER PERIODS (Escalation Costs) , if applicable

Charter HIRE Rate:

a. The Charter HIRE will be applied to chargeable time for each day of twenty four (24)
hours or pro-rated accordingly.

b. Composition of The Charter HIRE Rate - The day rate will comprise the following
elements:-

 Hull depreciation / Capex rate for the VESSEL, in most cases this will remain
fixed for the duration of the CHARTER PARTY, in some cases it may reduce
depending on structure selected. It will not escalate.

 Crew Costs, which will comprise the direct labour costs, including allowances,
travel and subsistence allowances, all bonuses, shift and other premia and
fringe benefits, all costs associated with holidays with pay, sickness, injury and
compassionate leave with pay, customary and public holidays and all other non-
chargeable time, payroll burden costs including but not limited to taxes and
contributions raised by law, workman's compensation and employers liability
insurance, welfare funds, pensions, health and life assurances etc, crew
training, costs which shall comprise all direct costs, including course fees,
travel, accommodation and subsistence payments incurred by the OWNERS’
obligation to comply with the crew training requirements including statutory
requirements relating to training for VESSEL crew and will remain fixed for the
duration of the CHARTER PARTY.

 All Other Costs to the OWNERS not covered above including but not limited to
dry-docking, inspections, parts, materials, maintenance, repairs,replacement

C180098/C180099/C180100/C180101 Page 1
 ANNEX A - SCHEDULE OF COSTS

VESSEL Cost, cost of navigation and communication equipmentand related

services, consumables (excepting fuel unless stated otherwise), overheads,
profit and the like.

 The Opex rate is derived from combining Crew Costs and Other Costs.

Fuel for the HIRE shall be provided by the CHARTERERS after reaching the place of delivery and up to
the place of redelivery. Fuel for mobilisation to the place of delivery and for demobilisation from the place
of redelivery shall be provided by the OWNER at the OWNER’s expense the cost of which is deemed
included in the rates for mobilisation and demobilisation.

Breakdown Of Charter HIRE Rate

The breakdown of the day rate shall be calculated in accordance with the above and is stated as
follows:

A Capital Cost ?
Rate BND$

B Crew Costs Rate BND$ ?

C Other Operating Costs Rate BND$ ?

TOTAL CHARTER HIRE RATE

BND$ ? (Base
Rate)

Table 1: Schedule of Costs for Tug Boat (C180098)

If OWNER to provide Tractor Tug or

other equivalent technology (to name it……………..) :

C180098/C180099/C180100/C180101 Page 2
 ANNEX A - SCHEDULE OF COSTS

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0 – 10 A

1
including its 10th anniversary. inclusive
From the beginning of year 11 up to and
11 – 15 B
2 including its 15th anniversary (for extension
period)
inclusive

From the Commencement Date up to and 0 – 15 C

3
including its 15th anniversary. inclusive

Table 2: Schedule of Costs for Tug Boat (C180099)

If OWNER to provide Tractor Tug or

other equivalent technology (to name it……………..) :

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0 – 10 A

1
including its 10th anniversary. inclusive
From the beginning of year 11 up to and
11 – 15 B
2 including its 15th anniversary (for extension
period)
inclusive

From the Commencement Date up to and 0 – 15 C

3
including its 15th anniversary. inclusive

Table 3: Schedule of Costs for Tug Boat (C180100)

C180098/C180099/C180100/C180101 Page 3
 ANNEX A - SCHEDULE OF COSTS

If OWNER to provide Tractor Tug or

other equivalent technology (to name it……………..) :

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0 – 10 A

1
including its 10th anniversary. inclusive
From the beginning of year 11 up to and
11 – 15 B
2 including its 15th anniversary (for extension
period)
inclusive

From the Commencement Date up to and 0 – 15 C

3
including its 15th anniversary. inclusive

Table 4: Schedule of Costs for AHTS (C180101)

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0 – 10 A

1
including its 10th anniversary. inclusive
From the beginning of year 11 up to and
11 – 15 B
2 including its 15th anniversary (for extension
period)
inclusive

From the Commencement Date up to and 0 – 15 C

3
including its 15th anniversary. inclusive

Table 5: Schedule of Costs for Tugs (Front Runner Vessel#1)

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0–2 A

1
including its 2nd anniversary. inclusive

Table 6: Schedule of Costs for Tugs (Front Runner Vessel#2)

C180098/C180099/C180100/C180101 Page 4
 ANNEX A - SCHEDULE OF COSTS

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0–2 A

1
including its 2nd anniversary. inclusive

Table 7: Schedule of Costs for Tugs (Front Runner Vessel#3)

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0–2 A

1
including its 2nd anniversary. inclusive

Table 8: Schedule of Costs for AHTS (Front Runner Vessel#4)

Index Period of HIRE Years Ref HIRE Rate

(BND$)/day

From the Commencement Date up to and 0–2 A

1
including its 2nd anniversary. inclusive

Where

A, B, and C in Table 1 till Table 8 is the HIRE rate payable per day or pro-rated for part thereof for WORK
done in accordance with the CHARTER PARTY stated in Brunei Dollars (BND$) that shall be fixed and
firm and free from adjustment for the period of HIRE in each interval starting from the Commencement
Date and that shall be effective for the length of time stated in either 1, 2, or 3 in Table 1 till Table 8., HIRE
rate, above.

Note that cost of meals and accommodation for the vessel’s crew are included in the HIRE rate of the
VESSEL and are not paid separately.

C180098/C180099/C180100/C180101 Page 5
 ANNEX A - SCHEDULE OF COSTS

Table 9. Mobilisation and demobilisation

Table 9a: Mobilisation and demobilisation for Tug Boat (C180098)

Index Description Lump Sum rate (BND$)

1 Mobilisation

2 Demobilisation

Table 9b: Mobilisation and demobilisation for Tug Boat (C180099)

Index Description Lump Sum rate (BND$)

1 Mobilisation

2 Demobilisation

Table 9c: Mobilisation and demobilisation for Tug Boat (C180100)

Index Description Lump Sum rate (BND$)

1 Mobilisation

2 Demobilisation

Table 9d: Mobilisation and demobilisation for AHTS (C180101)

Index Description Lump Sum rate (BND$)

1 Mobilisation

2 Demobilisation

Mobilisation and Demobilisation Rate

Index 1 in Table 9 above is the mobilisation rate and is a one-time cost which shall comprise of and not
be limited to all costs relating to the delivery of the VESSEL from its origin to the port or place of delivery
in full operational mode.

Index 2 in Table 9 above is the Demobilisation Rate which shall comprise of and not limited to all costs
relating to the demobilisation of the VESSEL from the place of redelivery to its next destination.

No other rate, sum, fee or price shall be payable unless expressly stated.

C180098/C180099/C180100/C180101 Page 6
 ANNEX A - SCHEDULE OF COSTS

PROVIDE A BREAKDOWN OF CREW COSTS ELEMENT OF CHARTER HIRE RATE

Total Rate Per Day - Including all costs identified above.

C180098/C180099/C180100/C180101 Page 7
 ANNEX A - SCHEDULE OF COSTS

No Designation BND$

1 Master

2 Chief Officer

3 2nd Mate

4 3rd Mate

5 Chief Engineer

6 2nd Engineer

7 Electrician

8 AB1

9 AB2

10 AB3

11 AB4

12 Cook

13 Other

Total of Crew Cost Element in

above

In addition to the above the CHARTERER may also consider the development of

Performance Management Framework

Over riding principle is that OWNER and CHARTERER will continuously look at improving and sustaining
vessel performance. This is recognized as a joint effort to improve safety, cost efficiency and effectiveness
of resources and as such both parties should benefit. It is recognized that OWNER will on certain elements
be in direct control, others they can contribute towards but on some they will not be able to influence.

C180098/C180099/C180100/C180101 Page 8
 ANNEX A - SCHEDULE OF COSTS

Where applicable, CHARTERER will put in place a performance framework around HSSE, cost and
efficiency measures, to be agreed annually.
In the case of a new CHARTER PARTY / new build vessel, CHARTERER will opt for a “Soft Start” to this
structure. The first year of the CHARTER PARTY the CHARTERER will develop a framework to test its
effectiveness before implementing the framework from Year 2 onwards.
With regard to Health, Safety and Environmental performance we aim for Goal Zero (zero harm to people,
zero harm to the environment and zero damages to assets).
Other KPI targets that may be used for Performance Management Framework could include the following;
the exact mix will be agreed between OWNER and CHARTERER:
 SIGNIFICANT HSE INCIDENT RAM3+ and/or with POTENTIAL RAM4+ DUE TO OWNER’s
FAULT quantity
 LTI quantity
 Non-Compliance with HSE Management plan provisions
 TRCF (frequency) basis 365 days running balance
 NEAR MISS REPORTS quantity
 STOP/BBS OBSERVATIONS quantity
 Incident notification and follow up procedure non-compliance cases quantity
 SHIP CREW TURNOVER (excluding resignations due to retirement, non-work related illness or
death while off-shift) in number of men missed
 Operating Costs Management
 Projected fuel consumption levels,
OWNER and CHARTERER will determine the base on which to improve. Tangible / Measurable proven
benefits will be shared between OWNER / operator and payable at the end of the year as a performance
bonus. The exact percentages to be identified during the soft start process.

C180098/C180099/C180100/C180101 Page 9