1.

Shipbroker

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD BAREBOAT CHARTER
CODE NAME: BARECON 89
PART I

First issued by
The Baltic and International Maritime Council (BIMCO), Copenhagen
in 1974 as Barecon A and Barecon B
Revised and amalgamated 1989

2. Place and date

3. Owners/Place of business

4. Bareboat charterers (Charterers)/Place of business

5. Vessels name, Call Sign and Flag (Cl. 9(c))

6. Type of vessel

7. GRT/NRT

8. When/Where built

9. Total DWT (abt.) in metric tons on summer freeboard

10. Class (Cl. 9)

11. Date of last special survey by the Vessels classification society

12. Further particulars of Vessel (also indicate minimum number of months validity of class certificates agreed acc. to Cl. 14)

13. Port or Place of delivery (Cl. 2)

14. Time for delivery (Cl. 3)

15. Cancelling date (Cl. 4)

16. Port or Place of redelivery (Cl. 14)

17. Running days notice if other than stated in Cl. 3

18. Frequency of dry-docking if other than stated in Cl. 9(f)

Adopted by
the Documentary Committee of The
Japan Shipping Exchange, Inc., Tokyo

Printed by BIMCOs idea

19. Trading Limits (Cl. 5)

20. Charter period

21. Charter hire (Cl. 10)

22. Rate of interest payable acc. to Cl. 10(f) and, if applicable, acc. to PART IV

23. Currency and method of payment (Cl. 10)

24. Place of payment; also state beneficiary and bank account (Cl. 10)

25. Bank guarantee/bond (sum and place) (Cl. 22) (optional)

26. Mortgage(s), if any, (state whether Cl. 11(a) or (b) applies; if 11(b) applies state
date of Deed(s) of Covenant and name of Mortgagee(s)/Place of business) (Cl. 11)

27. Insurance (marine and war risks) (state value acc. to Cl. 12(f) or, if applicable,
acc. to Cl. 13(k)) (also state if Cl. 13 applies)

28. Additional insurance cover, if any, for Owners account limited to (Cl. 12(b)) or, if a 29. Additional insurance cover, if any, for Charterers account limited to (Cl. 12(b))
or, if applicable, (Cl. 13(g))
30. Latent defects (only to be filled in if period other than stated in Cl. 2)

31. War cancellation (indicate countries agreed) (Cl. 24)

32. Brokerage commission and to whom payable (Cl. 25)

33. Law and arbitration (state 26.1., 26.2., or 26.3. of Cl. 26 as agreed; if 26.3.
agreed, also state place of arbitration) (Cl. 26)

34. Number of additional clauses covering special provisions, if agreed

Copyright, published by
The Baltic and International Maritime Council
(BIMCO), Copenhagen, September 1989

35. Newbuilding Vessel (indicate with yes or no whether Part III applies) (optional) 36. Name and place of Builders (only to be filled in if Part III applies)

37. Vessels Yard Building No. (only to be filled in if Part III applies)

38. Date of Building Contract (only to be filled in if Part III applies)

39. Hire/Purchase agreement (indicate with yes or no whether Part IV applies)

40. Bareboat Charter Registry (indicate with yes or no whether Part V applies)
(optional)
(optional)

41. Flag and Country of the Bareboat Charter Registry (only to be filled in if Part V
42. Country of the Underlying Registry (only to be filled in if Part V applies)
applies)

This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made
to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or
expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

BARECON 89 Standard Bareboat Charter

PART I

PREAMBLE. - It is mutually agreed that this Contract shall be performed subject to the conditions contained in this Charter which shall include PART I and PART II. In the event
of a conflict of conditions, the provisions of PART I shall prevail over those of PART II to the extent of such conflict but no further. It is further mutually agreed that PART
III and/or PART IV and/or PART V shall only apply and shall only form part of this Charter if expressly agreed and stated in the Boxes 35, 39 and 40. If PART III and/or PART IV
and/or PART V apply, it is further mutually agreed that in the event of a conflict of conditions, the provisions of PART I and PART II shall prevail over those of PART III and/or
PART IV and/or PART V to the extent of such conflict but no further.
Signature (Owners)

Signature (Charterers)

This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made
to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or
expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

PART II
BARECON 89 Standard Bareboat Charter
1. Definitions
In this Charter, the following terms shall have the meanings hereby assigned
to them:
The Owners shall mean the person or company registered as Owners of the
Vessel.
The Charterers shall mean the Bareboat charterers and shall not be
construed to mean a time charterer or a voyage charterer.

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Delivery (not applicable to newbuilding vessels)

The Vessel shall be delivered and taken over by the Charterers at the port or
place indicated in Box 13, in such ready berth as the Charterers may direct.
The Owners shall before and at the time of delivery exercise due diligence to
make the Vessel seaworthy and in every respect ready in hull, machinery and
equipment for service under this Charter. The Vessel shall be properly
documented at time of delivery.
The delivery to the Charterers of the Vessel and the taking over of the Vessel
by the Charterers shall constitute a full performance by the Owners of all the
Owners obligations under Clause 2, and thereafter the Charterers shall not
be entitled to make or assert any claim against the Owners on account of any
conditions, representations or warranties expressed or implied with respect
to the Vessel but the Owners shall be responsible for repairs or renewals
occasioned by latent defects in the Vessel, her machinery or appurtenances,
existing at the time of delivery under the Charter, provided such defects have
manifested themselves within 18 months after delivery unless otherwise
provided in Box 30.

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Time for Delivery (not applicable to newbuilding vessels)

The Vessel to be delivered not before the date indicated in Box 14 unless with
the Charterers consent.
Unless otherwise agreed in Box 17, the Owners to give the Charterers not less
than 3O running days preliminary and not less than 14 days definite notice of
the date on which the Vessel is expected to be ready for delivery.
The Owners to keep the Charterers closely advised of possible changes in the
Vessels position.

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4.

Cancelling (not applicable to newbuilding vessels)

Should the Vessel not be delivered latest by the cancelling date indicated in
Box 15, the Charterers to have the option of cancelling this Charter without
prejudice to any claim the Charterers may otherwise have on the Owners
under the Charter.
If it appears that the Vessel will be delayed beyond the cancelling date, the
Owners shall, as soon as they are in a position to state with reasonable
certainty the day on which the Vessel should be ready, give notice thereof to
the Charterers asking whether they will exercise their option of cancelling,
and the option must then be declared within one hundred and sixty-eight
(168) hours of the receipt by the Charterers of such notice. If the Charterers
do not then exercise their option of cancelling, the seventh day after the
readiness date stated in the Owners notice shall be regarded as a new
cancelling date for the purpose of this Clause.

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5.

Trading Limits
The Vessel shall be employed in lawful trades for the carriage of suitable
lawful merchandise within the trading limits indicated in Box 19.
The Charterers undertake not to employ the Vessel or suffer the Vessel to be
employed otherwise than in conformity with the terms of the instruments of
insurance (including any warranties expressed or implied therein) without
first obtaining the consent to such employment of the Insurers and complying
with such requirements as to extra premium or otherwise as the Insurers may
prescribe. If required, the Charterers shall keep the Owners and the
Mortgagees advised of the intended employment of the Vessel.
The Charterers also undertake not to employ the Vessel or suffer her
employment in any trade or business which is forbidden by the law of any
country to which the Vessel may sail or is otherwise illicit or in carrying illicit
or prohibited goods or in any manner whatsoever which may render her liable
to condemnation, destruction, seizure or confiscation.
Notwithstanding any other provisions contained in this Charter it is agreed
that nuclear fuels or radioactive products or waste are specifically excluded
from the cargo permitted to be loaded or carried under this Charter. This
exclusion does not apply to radio-isotopes used or intended to be used for
any industrial, commercial, agricultural, medical or scientific purposes
provided the Owners prior approval has been obtained to loading thereof.

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6.

Surveys (not applicable to newbuilding vessels)

Survey on Delivery and Redelivery. - The Owners and Charterers shall each
appoint surveyors for the purpose of determining and agreeing in writing the
condition of the Vessel at the time of delivery and redelivery hereunder. The
Owners shall bear all expenses of the On-Survey including loss of time, if any,
and the Charterers shall bear all expenses of the Off-Survey including loss of
time, if any, at the rate of hire per day or pro rata, also including in each case

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2.

3.

the cost of any docking and undocking, if required, in connection herewith.

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7.

Inspection
Inspection. - The Owners shall have the right at any time to inspect or survey
the Vessel or instruct a duly authorised surveyor to carry out such survey on
their behalf to ascertain the condition of the Vessel and satisfy themselves
that the Vessel is being properly repaired and maintained. Inspection or
survey in dry-dock shall be made only when the Vessel shall be in dry-dock
for the Charterers purpose. However, the Owners shall have the right to
require the Vessel to be dry-docked for inspection if the Charterers are not
docking her at normal classification intervals. The fees for such inspection or
survey shall in the event of the Vessel being found to be in the condition
provided in Clause 9 of this Charter be payable by the Owners and shall be
paid by the Charterers only in the event of the Vessel being found to require
repairs or maintenance in order to achieve the condition so provided. All time
taken in respect of inspection, survey or repairs shall count as time on hire
and shall form part of the Charter period.
The Charterers shall also permit the Owners to inspect the Vessels log books
whenever requested and shall whenever required by the Owners furnish them
with full information regarding any casualties or other accidents or damage to
the Vessel. For the purpose of this Clause, the Charterers shall keep the
Owners advised of the intended employment of the Vessel.

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8.

Inventories and Consumable Oil and Stores

A complete inventory of the Vessels entire equipment, outfit, appliances and
of all consumable stores on board the Vessel shall be made by the Charterers
in conjunction with the Owners on delivery and again on redelivery of the
Vessel. The Charterers and the Owners, respectively, shall at the time of
delivery and redelivery take over and pay for all bunkers, lubricating oil, water
and unbroached provisions, paints, oils, ropes and other consumable stores
in the said Vessel at the then current market prices at the ports of delivery and
redelivery, respectively.

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9.

Maintenance and Operation

(a) The Vessel shall during the Charter period be in the full possession and at
the absolute disposal for all purposes of the Charterers and under their
complete control in every respect. The Charterers shall maintain the Vessel,
her machinery, boilers, appurtenances and spare parts in a good state of
repair, in efficient operating condition and in accordance with good
commercial maintenance practice and, except as provided for in Clause 13
(l), they shall keep the Vessel with unexpired classification of the class
indicated in Box 10 and with other required certificates in force at all times.
The Charterers to take immediate steps to have the necessary repairs done
within a reasonable time failing which the Owners shall have the right of
withdrawing the Vessel from the service of the Charterers without noting any
protest and without prejudice to any claim the Owners may otherwise have
against the Charterers under the Charter.
Unless otherwise agreed, in the event of any improvement, structural changes
or expensive new equipment becoming necessary for the continued
operation of the Vessel by reason of new class requirements or by
compulsory legislation costing more than 5 per cent. of the Vessels marine
insurance value as stated in Box 27, then the extent, if any, to which the rate of
hire shall be varied and the ratio in which the cost of compliance shall be
shared between the parties concerned in order to achieve a reasonable
distribution thereof as between the Owners and the Charterers having regard,
inter alia, to the length of the period remaining under the Charter, shall in the
absence of agreement, be referred to arbitration according to Clause 26.
The Charterers are required to establish and maintain financial security or
responsibility in respect of oil or other pollution damage as required by any
government, including Federal, state or municipal or other division or
authority thereof, to enable the Vessel, without penalty or charge, lawfully to
enter, remain at, or leave any port, place, territorial or contiguous waters of
any country, state or municipality in performance of this Charter without any
delay. This obligation shall apply whether or not such requirements have
been lawfully imposed by such government or division or authority thereof.
The Charterers shall make and maintain all arrangements by bond or
otherwise as may be necessary to satisfy such requirements at the
Charterers sole expense and the Charterers shall indemnify the Owners
against all consequences whatsoever (including loss of time) for any failure
or inability to do so.
TOVALOP SCHEME. (Applicable to oil tank vessels only). - The Charterers are
required to enter the Vessel under the TOVALOP SCHEME or under any
similar compulsory scheme upon delivery under this Charter and to maintain
her so during the currency of this Charter.
(b) The Charterers shall at their own expense and by their own procurement
man, victual, navigate, operate, supply, fuel and repair the Vessel whenever
required during the Charter period and they shall pay all charges and
expenses of every kind and nature whatsoever incidental to their use and
operation of the Vessel under this Charter, including any foreign general
municipality and/or state taxes. The Master, officers and crew of the Vessel

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This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of
discrepancies between the original BIMCO approved document and this computer generated document.

PART II
BARECON 89 Standard Bareboat Charter
shall be the servants of the Charterers for all purposes whatsoever, even if for
any reason appointed by the Owners.
Charterers shall comply with the regulations regarding officers and crew in
force in the country of the Vessels flag or any other applicable law.
(c) During the currency of this Charter, the Vessel shall retain her present
name as indicated in Box 5 and shall remain under and fly the flag as
indicated in Box 5. Provided, however, that the Charterers shall have the
liberty to paint the Vessel in their own colours, install and display their funnel
insignia and fly their own house flag. Painting and re-painting, instalment and
re-instalment to be for the Charterers account and time used thereby to
count as time on hire.
(d) The Charterers shall make no structural changes in the Vessel or changes
in the machinery, boilers, appurtenances or spare parts thereof without in
each instance first securing the Owners approval thereof. If the Owners so
agree, the Charterers shall, if the Owners so require, restore the Vessel to its
former condition before the termination of the Charter.
(e) The Charterers shall have the use of all outfit, equipment, and appliances
on board the Vessel at the time of delivery, provided the same or their
substantial equivalent shall be returned to the Owners on redelivery in the
same good order and condition as when received, ordinary wear and tear
excepted. The Charterers shall from time to time during the Charter period
replace such items of equipment as shall be so damaged or worn as to be
unfit for use. The Charterers are to procure that all repairs to or replacement
of any damaged, worn or lost parts or equipment be effected in such manner
(both as regards workmanship and quality of materials) as not to diminish the
value of the Vessel. The Charterers have the right to fit additional equipment
at their expense and risk but the Charterers shall remove such equipment at
the end of the period if requested by the Owners.
Any equipment including radio equipment on hire on the Vessel at time of
delivery shall be kept and maintained by the Charterers and the Charterers
shall assume the obligations and liabilities of the Owners under any lease
contracts in connection therewith and shall reimburse the Owners for all
expenses incurred in connection therewith, also for any new equipment
required in order to comply with radio regulations.
(f) The Charterers shall dry-dock the Vessel and clean and paint her
underwater parts whenever the same may be necessary, but not less than
once in every eighteen calendar months after delivery unless otherwise
agreed in Box 18.

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Hire
(a) The Charterers shall pay to the Owners for the hire of the Vessel at the
lump sum per calendar month as indicated in Box 21 commencing on and
from the date and hour of her delivery to the Charterers and at and after the
agreed lump sum for any part of a month. Hire to continue until the date and
hour when the Vessel is redelivered by the Charterers to her Owners.
(b) Payment of Hire, except for the first and last months Hire, if sub-clause (c)
of this Clause is applicable, shall be made in cash without discount every
month in advance on the first day of each month in the currency and in the
manner indicated in Box 23 and at the place mentioned in Box 24.
(c) Payment of Hire for the first and last months Hire if less than a full month
shall be calculated proportionally according to the number of days in the
particular calendar month and advance payment to be effected accordingly.
(d) Should the Vessel be lost or missing, Hire to cease from the date and time
when she was lost or last heard of. Any Hire paid in advance to be adjusted
accordingly.
(e) Time shall be of the essence in relation to payment of Hire hereunder. In
default of payment beyond a period of seven running days, the Owners shall
have the right to withdraw the Vessel from the service of the Charterers
without noting any protest and without interference by any court or any other
formality whatsoever, and shall, without prejudice to any other claim the
Owners may otherwise have against the Charterers under the Charter, be
entitled to damages in respect of all costs and losses incurred as a result of
the Charterers default and the ensuing withdrawal of the Vessel.
(f) Any delay in payment of Hire shall entitle the Owners to an interest at the
rate per annum as agreed in Box 22. If Box 22 has not been filled in the current
market rate in the country where the Owners have their Principal Place of
Business shall apply.

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11.
Mortgage
*) (a) Owners warrant that they have not effected any mortgage of the Vessel.
*) (b) The Vessel chartered under this Charter is financed by a mortgage
according to the Deed(s) of Covenant annexed to this Charter and as stated in
Box 26. By their counter-signature on the Deed(s) of Covenant, the
Charterers undertake to have acquainted themselves with all terms,
conditions and provisions of the said Deed(s) of Covenant. The Charterers
undertake that they will comply with all such instructions or directions in
regard to the employment, insurances, repairs and maintenance of the
Vessel, etc., as laid down in the Deed(s) of Covenant or as may be directed
from time to time during the currency of the Charter by the Mortgagee(s) in

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10.

conformity with the Deed(s) of Covenant.

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(c) The Owners warrant that they have not effected any mortgage(s) other
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than stated in Box 26 and that they will not effect any other mortgage(s)
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without the prior consent of the Charterers.
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*) (Optional Clauses 11 (a) and 11 (b) are alternatives; indicate alternative agreed 233
in Box 26).
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12.

Insurance and Repairs

(a) During the Charter period the Vessel shall be kept insured by the
Charterers at their expense against marine, war and Protection and Indemnity
risks in such form as the Owners shall in writing approve, which approval
shall not be unreasonably withheld. Such marine, war and P. and I.
insurances shall be arranged by the Charterers to protect the interests of both
the Owners and the Charterers and mortgagees (if any), and the Charterers
shall be at liberty to protect under such insurances the interests of any
managers they may appoint. All insurance policies shall be in the joint names
of the Owners and the Charterers as their interests may appear.
If the Charterers fail to arrange and keep any of the insurances provided
for under the provisions of sub-clause (a) above in the manner described
therein, the Owners shall notify the Charterers whereupon the Charterers
shall rectify the position within seven running days, failing which Owners
shall have the right to withdraw the Vessel from the service of the Charterers
without prejudice to any claim the Owners may otherwise have against the
Charterers.
The Charterers shall, subject to the approval of the Owners and the
Underwriters, effect all insured repairs and shall undertake settlement of all
costs in connection with such repairs as well as insured charges, expenses
and liabilities (reimbursement to be secured by the Charterers from the
Underwriters) to the extent of coverage under the insurances herein provided
for.
The Charterers also to remain responsible for and to effect repairs and
settlement of costs and expenses incurred thereby in respect of all other
repairs not covered by the insurances and/or not exceeding any possible
franchise(s) or deductibles provided for in the insurances.
All time used for repairs under the provisions of sub-clause (a) of this Clause
and for repairs of latent defects according to Clause 2 above including any
deviation shall count as time on hire and shall form part of the Charter period.
(b) If the conditions of the above insurances permit additional insurance to be
placed by the parties, such cover shall be limited to the amount for each party
set out in Box 28 and Box 29, respectively. The Owners or the Charterers as
the case may be shall immediately furnish the other party with particulars of
any additional insurance effected, including copies of any cover notes or
policies and the written consent of the insurers of any such required
insurance in any case where the consent of such insurers is necessary.
(c) Should the Vessel become an actual, constructive, compromised or
agreed total loss under the insurances required under sub-clause (a) of
Clause 12, all insurance payments for such loss shall be paid to the Mortgagee, if any, in the manner described in the Deed(s) of Covenant, who shall
distribute the moneys between themselves, the Owners and the Charterers
according to their respective interests. The Charterers undertake to notify the
Owners and the Mortgagee, if any, of any occurrences in consequence of
which the Vessel is likely to become a Total Loss as defined in this Clause.
(d) If the Vessel becomes an actual, constructive, compromised or agreed
total loss under the insurances arranged by the Charterers in accordance
with sub-clause (a) of this Clause, this Charter shall terminate as of the date of
such loss.
(e) The Owners shall upon the request of the Charterers, promptly execute
such documents as may be required to enable the Charterers to abandon the
Vessel to insurers and claim a constructive total loss.
(f) For the purpose of insurance coverage against marine and war risks under
the provisions of sub-clause (a) of this Clause, the value of the Vessel is the
sum indicated in Box 27.

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13.

Insurance, Repairs and Classification

(Optional, only to apply if expressly agreed and stated in Box 27, in which event
Clause 12 shall be considered deleted).
(a) During the Charter period the Vessel shall be kept insured by the Owners
at their expense against marine and war risks under the form of policy or
policies attached hereto. The Owners and/or insurers shall not have any right
of recovery or subrogation against the Charterers on account of loss of or any
damage to the Vessel or her machinery or appurtenances covered by such
insurance, or on account of payments made to discharge claims against or
liabilities of the Vessel or the Owners covered by such insurance. All
insurance policies shall be in the joint names of the Owners and the
Charterers as their interests may appear.
(b) During the Charter period the Vessel shall be kept insured by the
Charterers at their expense against Protection and Indemnity risks in such
form as the Owners shall in writing approve which approval shall not be
unreasonably withheld. If the Charterers fail to arrange and keep any of the

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This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of
discrepancies between the original BIMCO approved document and this computer generated document.

PART II
BARECON 89 Standard Bareboat Charter

14.

15.

insurances provided for under the provisions of sub-clause (b) in the manner
described therein, the Owners shall notify the Charterers whereupon the
Charterers shall rectify the position within seven running days, failing which
the Owners shall have the right to withdraw the Vessel from the service of the
Charterers without prejudice to any claim the Owners may otherwise have
against the Charterers.
(c) In the event that any act or negligence of the Charterers shall vitiate any of
the insurance herein provided, the Charterers shall pay to the Owners all
losses and indemnify the Owners against all claims and demands which
would otherwise have been covered by such insurance.
(d) The Charterers shall, subject to the approval of the Owners or Owners
Underwriters, effect all insured repairs, and the Charterers shall undertake
settlement of all miscellaneous expenses in connection with such repairs as
well as all insured charges, expenses and liabilities, to the extent of coverage
under the insurances provided for under the provisions of sub-clause (a) of
this Clause. The Charterers to be secured reimbursement through the
Owners Underwriters for such expenditures upon presentation of accounts.
(e) The Charterers to remain responsible for and to effect repairs and
settlement of costs and expenses incurred thereby in respect of all other
repairs not covered by the insurances and/or not exceeding any possible
franchise(s) or deductibles provided for in the insurances.
(f) All time used for repairs under the provisions of sub-clause (d) and (e) of
this Clause and for repairs of latent defects according to Clause 2 above,
including any deviation, shall count as time on hire and shall form part of the
Charter period.
The Owners shall not be responsible for any expenses as are incident to the
use and operation of the Vessel for such time as may be required to make
such repairs.
(g) If the conditions of the above insurances permit additional insurance to be
placed by the parties such cover shall be limited to the amount for each party
set out in Box 28 and Box 29, respectively. The Owners or the Charterers as
the case may be shall immediately furnish the other party with particulars of
any additional insurance effected, including copies of any cover notes or
policies and the written consent of the Insurers of any such required
insurance in any case where the consent of such Insurers is necessary.
(h) Should the Vessel become an actual, constructive, compromised or
agreed total loss under the insurances required under sub-clause (a) of this
Clause, all insurance payments for such loss shall be paid to the Owners, who
shall distribute the moneys between themselves and the Charterers
according to their respective interests.
(i) If the Vessel becomes an actual, constructive, compromised or agreed
total loss under the insurances arranged by the Owners in accordance with
sub-clause (a) of this Clause, this Charter shall terminate as of the date of
such loss.
(j) The Charterers shall upon the request of the Owners, promptly execute
such documents as may be required to enable the Owners to abandon the
Vessel to Insurers and claim a constructive total loss.
(k) For the purpose of insurance coverage against marine and war risks under
the provisions of sub-clause (a) of this Clause, the value of the Vessel is the
sum indicated in Box 27.
(l) Notwithstanding anything contained in Clause 9 (a), it is agreed that under
the provisions of Clause 13, if applicable, the Owners shall keep the Vessel
with unexpired classification in force at all times during the Charter period.

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358

Redelivery
The Charterers shall at the expiration of the Charter period redeliver the
Vessel at a safe and ice-free port or place as indicated in Box 16. The
Charterers shall give the Owners not less than 30 running days preliminary
and not less than 14 days definite notice of expected date, range of ports of
redelivery or port or place of redelivery. Any changes thereafter in Vessels
position shall be notified immediately to the Owners.
Should the Vessel be ordered on a voyage by which the Charter period may
be exceeded the Charterers to have the use of the Vessel to enable them to
complete the voyage, provided it could be reasonably calculated that the
voyage would allow redelivery about the time fixed for the termination of the
Charter.
The Vessel shall be redelivered to the Owners in the same or as good
structure, state, condition and class as that in which she was delivered, fair
wear and tear not affecting class excepted.
The Vessel upon redelivery shall have her survey cycles up to date and class
certificates valid for at least the number of months agreed in Box 12.

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Non-Lien and Indemnity

The Charterers will not suffer, nor permit to be continued, any lien or
encumbrance incurred by them or their agents, which might have priority over
the title and interest of the Owners in the Vessel.
The Charterers further agree to fasten to the Vessel in a conspicuous place
and to keep so fastened during the Charter period a notice reading as
follows:-

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This Vessel is the property of (name of Owners). It is under charter to (name

of Charterers) and by the terms of the Charter Party neither the Charterers nor
the Master have any right, power or authority to create, incur or permit to be
imposed on the Vessel any lien whatsoever.
The Charterers shall indemnify and hold the Owners harmless against any
lien of whatsoever nature arising upon the Vessel during the Charter period
while she is under the control of the Charterers, and against any claims
against the Owners arising out of or in relation to the operation of the Vessel
by the Charterers. Should the Vessel be arrested by reason of claims or liens
arising out of her operation hereunder by the Charterers, the Charterers shall
at their own expense take all reasonable steps to secure that within a
reasonable time the Vessel is released and at their own expense put up bail to
secure release of the Vessel.

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395

16.

Lien
396
The Owners to have a lien upon all cargoes and sub-freights belonging to the 397
Charterers and any Bill of Lading freight for all claims under this Charter, and
398
the Charterers to have a lien on the Vessel for all moneys paid in advance and 399
not earned.
400

17.

Salvage
All salvage and towage performed by the Vessel shall be for the Charterers
benefit and the cost of repairing damage occasioned thereby shall be borne
by the Charterers.

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404

18.

Wreck Removal
In the event of the Vessel becoming a wreck or obstruction to navigation the
Charterers shall indemnify the Owners against any sums whatsoever which
the Owners shall become liable to pay and shall pay in consequence of the
Vessel becoming a wreck or obstruction to navigation.

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409

19.

General Average
General Average, if any, shall be adjusted according to the York-Antwerp
Rules 1974 or any subsequent modification thereof current at the time of the
casualty.
The Charter Hire not to contribute to General Average.

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414

20.

Assignment and Sub-Demise

The Charterers shall not assign this Charter nor sub-demise the Vessel
except with the prior consent in writing of the Owners which shall not be
unreasonably withheld and subject to such terms and conditions as the
Owners shall approve.

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21.

Bills of Lading
The Charterers are to procure that all Bills of Lading issued for carriage of
goods under this Charter shall contain a Paramount Clause incorporating any
legislation relating to Carriers liability for cargo compulsorily applicable in
the trade; if no such legislation exists, the Bills of Lading shall incorporate the
British Carriage of Goods by Sea Act. The Bills of Lading shall also contain the
amended New Jason Clause and the Both-to-Blame Collision Clause.
The Charterers agree to indemnify the Owners against all consequences or
liabilities arising from the Master, officers or agents signing Bills of Lading or
other documents.

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429

22.

Bank Guarantee
The Charterers undertake to furnish, before delivery of the Vessel, a first class
bank guarantee or bond in the sum and at the place as indicated in Box 25 as
guarantee for full performance of their obligations under this Charter.
(Optional, only to apply if Box 25 filled in).

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434

23.

Requisition/Acquisition
(a) In the event of the Requisition for Hire of the Vessel by any governmental or
other competent authority (hereinafter referred to as Requisition for Hire)
irrespective of the date during the Charter period when Requisition for Hire
may occur and irrespective of the length thereof and whether or not it be for
an indefinite or a limited period of time, and irrespective of whether it may or
will remain in force for the remainder of the Charter period, this Charter shall
not be deemed thereby or thereupon to be frustrated or otherwise terminated
and the Charterers shall continue to pay the stipulated hire in the manner
provided by this Charter until the time when the Charter would have
terminated pursuant to any of the provisions hereof always provided however
that in the event of Requisition for Hire any Requisition Hire or
compensation received or receivable by the Owners shall be payable to the
Charterers during the remainder of the Charter period or the period of the
Requisition for Hire whichever be the shorter.
The Hire under this Charter shall be payable to the Owners from the same time
as the Requisition Hire is payable to the Charterers.
(b) In the event of the Owners being deprived of their ownership in the Vessel
by any Compulsory Acquisition of the Vessel or requisition for title by any
governmental or other competent authority (hereinafter referred to as
Compulsory Acquisition), then, irrespective of the date during the Charter

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This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of
discrepancies between the original BIMCO approved document and this computer generated document.

PART II
BARECON 89 Standard Bareboat Charter

24.

period when Compulsory Acquisition may occur, this Charter shall be

deemed terminated as of the date of such Compulsory Acquisition. In such
event Charter Hire to be considered as earned and to be paid up to the date
and time of such Compulsory Acquisition.

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459

War
(a) The Vessel unless the consent of the Owners be first obtained not to be
ordered nor continue to any place or on any voyage nor be used on any
service which will bring her within a zone which is dangerous as the result of
any actual or threatened act of war, war, hostilities, warlike operations, acts of
piracy or of hostility or malicious damage against this or any other vessel or
its cargo by any person, body or State whatsoever, revolution, civil war, civil
commotion or the operation of international law, nor be exposed in any way to
any risks or penalties whatsoever consequent upon the imposition of
Sanctions, nor carry any goods that may in any way expose her to any risks of
seizure, capture, penalties or any other interference of any kind whatsoever
by the belligerent or fighting powers or parties or by any Government or Ruler.
(b) The Vessel to have liberty to comply with any orders or directions as to
departure, arrival, routes, ports of call, stoppages, destination, delivery or in
any other wise whatsoever given by the Government of the nation under
whose flag the Vessel sails or any other Government or any person (or body)
acting or purporting to act with the authority of such Government or by any
committee or person having under the terms of the war risks insurance on the
Vessel the right to give any such orders or directions.
(c) In the event of outbreak of war (whether there be a declaration of war or
not) between any two or more of the countries as stated in Box 31, both the
Owners and the Charterers shall have the right to cancel this Charter,
whereupon the Charterers shall redeliver the Vessel to the Owners in
accordance with Clause 14, if she has cargo on board after discharge thereof
at destination, or if debarred under this Clause from reaching or entering it at
a near open and safe port as directed by the Owners, or if she has no cargo on
board, at the port at which she then is or if at sea at a near open and safe port
as directed by the Owners. In all cases hire shall continue to be paid in
accordance with Clause 10 and except as aforesaid all other provisions of this

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25.

Charter shall apply until redelivery.

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Commission
The Owners to pay a commission at the rate indicated in Box 32 to the Brokers
named in Box 32 on any Hire paid under the Charter but in no case less than is
necessary to cover the actual expenses of the Brokers and a reasonable fee
for their work. If the full Hire is not paid owing to breach of Charter by either of
the parties the party liable therefor to indemnify the Brokers against their loss
of commission.
Should the parties agree to cancel the Charter, the Owners to indemnify the
Brokers against any loss of commission but in such case the commission not
to exceed the brokerage on one years Hire.

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499

26.
Law and Arbitration
*) 26.1. This Charter shall be governed by English law and any dispute arising
out of this Charter shall be referred to arbitration in London, one arbitrator
being appointed by each party, in accordance with the Arbitration Acts 1950
and 1979 or any statutory modification or re-enactment thereof for the time
being in force. On the receipt by one party of the nomination in writing of the
other partys arbitrator, that party shall appoint their arbitrator within fourteen
days, failing which the decision of the single Arbitrator appointed shall apply.
If two Arbitrators properly appointed shall not agree they shall appoint an
umpire whose decision shall be final.
*) 26.2. Should any dispute arise out of this Charter, the matter in dispute shall
be referred to three persons at New York, one to be appointed by each of the
parties hereto, and the third by the two so chosen; their decision or that of any
two of them shall be final, and for purpose of enforcing any award, this
agreement may be made a rule of the Court.
The arbitrators shall be members of the Society of Maritime Arbitrators, Inc. of
New York and the proceedings shall be conducted in accordance with the
rules of the Society.
*) 26.3. Any dispute arising out of this Charter shall be referred to arbitration at
the place indicated in Box 33, subject to the law and procedures applicable
there.
26.4. If Box 33 in Part I is not filled in, sub-clause 26.1. of this Clause shall
apply.
*) 26.1., 26.2. and 26.3. are alternatives; indicate alternative agreed in Box 33.

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This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of
discrepancies between the original BIMCO approved document and this computer generated document.

BARECON 89 Standard Bareboat Charter

OPTIONAL
PART

PART III
PROVISIONS TO APPLY FOR NEWBUILDING VESSELS ONLY
(Optional, only to apply if expressly agreed and stated in Box 35)

Specifications and Building Contract

(a) The Vessel shall be constructed in accordance with the Building Contract
(hereafter called the Building Contract) as annexed to this Charter, made
between the Builders and the Owners and in accordance with the specifications
and plans annexed thereto, such Building Contract, specifications and plans
having been counter-signed as approved by the Charterers.
(b) No change shall be made in the Building Contract or in the specifications or
plans of the Vessel as approved by the Charterers as aforesaid, without the
Charterers consent.
(c) The Charterers shall have the right to send their representative to the Builders
Yard to inspect the Vessel during the course of her construction to satisfy
themselves that construction is in accordance with such approved specifications
and plans as referred to under sub-clause (a) of this Clause.
(d) The Vessel shall be built in accordance with the Building Contract and shall be
of the description set out therein provided nevertheless that the Charterers shall
be bound to accept the Vessel from the Owners on the date of delivery by the
Builders as having been completed and constructed in accordance with the
Building Contract and the Charterers undertake that after having so accepted the
Vessel they will not thereafter raise any claims against the Owners in respect of
the Vessels performance or specification or defects if any except that in respect
of any repair or replacement of any defects which appear within the first 12
months from delivery the Owners shall use their best endeavours to recover any
expenditure incurred in remedying such defects from the Builders, but shall only
be liable to the Charterers to the extent the Owners have a valid claim against the
Builders under the guarantee clause of the Building Contract (a copy whereof has
been supplied to the Charterers) provided that the Charterers shall be bound to
accept such sums as the Owners are able to recover under this clause and shall
make no claim upon the Owners for any difference between the amounts so
recovered and the actual expenditure incurred on repairs or replacements or for
any loss of time incurred thereby.

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Time and Place of Delivery

(a) Subject to the Vessel having completed her acceptance trials including trials
of cargo equipment in accordance with the Building Contract and specifications
to the satisfaction of the Charterers, the Owners shall give and the Charterers
shall take delivery of the Vessel afloat when ready for delivery at the Builders Yard
or some other safe and readily accessible dock, wharf or place as may be agreed
between the parties hereto and the Builders. Under the Building Contract the
Builders have estimated that the Vessel will be ready for delivery to the Owners as
therein provided but the delivery date for the purpose of this Charter shall be the
date when the Vessel is in fact ready for delivery by the Builders after completion
of trials whether that be before or after as indicated in the Building Contract.
Notwithstanding the foregoing, the Charterers shall not be obliged to take delivery
of the Vessel until she has been classed and documented as provided in this
Charter and free for transfer to the flag she has to fly. Subject as aforesaid the
Charterers shall not be entitled to refuse acceptance of delivery of the Vessel and
upon and after such acceptance the Charterers shall not be entitled to make any
claim against the Owners in respect of any conditions, representations or

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warranties, whether express or implied, as to the seaworthiness of the Vessel or in

respect of delay in delivery or otherwise howsoever.
(b) If for any reason other than a default by the Owners under the Building
Contract, the Builders become entitled under that Contract not to deliver the
Vessel to the Owners, the Owners shall upon giving to the Charterers written
notice of Builders becoming so entitled, be excused from giving delivery of the
Vessel to the Charterers and upon receipt of such notice by the Charterers this
Charter shall cease to have effect.
(c) If for any reason the Owners become entitled under the Building Contract to
reject the Vessel the Owners shall, before exercising such right of rejection,
consult the Charterers and thereupon
i) if the Charterers do not wish to take delivery of the vessel they shall inform the
Owners within seven (7) days by notice in writing and upon receipt by the
Owners of such notice this Charter shall cease to have effect; or
ii) if the Charterers wish to take delivery of the Vessel they may by notice in
writing within seven (7) days require the Owners to negotiate with the Builders
as to the terms on which delivery should be taken and/or refrain from
exercising their right to rejection and upon receipt of such notice the Owners
shall commence such negotiations and/or take delivery of the Vessel from the
Builders and deliver her to the Charterers;
iii) in no circumstances shall the Charterers be entitled to reject the Vessel
unless the Owners are able to reject the Vessel from the Builders;
iv) if this Charter terminates under sub-clause (b) or (c) of this Clause, the
Owners shall thereafter not be liable to the Charterers for any claim under or
arising out of this Charter or its termination.

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Guarantee Works
If not otherwise agreed, the Owners authorize the Charterers to arrange for the
guarantee works to be performed in accordance with the building contract terms,
and hire to continue during the period of guarantee works. The Charterers have to
advise the Owners about the performance to the extent the Owners may request.

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77

Name of Vessel
The name of the Vessel shall be mutually agreed between the Owners and the
Charterers and the Vessel shall be painted in the colours, display the funnel
insignia and fly the house flag as required by the Charterers.

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81

Survey on Redelivery
The Owners and the Charterers shall appoint surveyors for the purpose of
determining and agreeing in writing the condition of the Vessel at the time of redelivery.
Without prejudice to Clause 14 (Part II), the Charterers shall bear all survey
expenses and all other costs, if any, including the cost of docking and undocking,
if required, as well as all repair costs incurred.
The Charterers shall also bear all loss of time spent in connection with any
docking and undocking as well as repairs, which shall be paid at the rate of Hire
per day or pro rata.

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This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of
discrepancies between the original BIMCO approved document and this computer generated document.

BARECON 89 Standard Bareboat Charter

PART IV
HIRE/PURCHASE AGREEMENT
(Optional, only to apply if expressly agreed and stated in Box 39)

On expiration of this Charter and provided the Charterers have fulfilled their
obligations according to Part I and II as well as Part Ill, if applicable, it is agreed,
that on payment of the last months hire instalment as per Clause 10 the Charterers
have purchased the Vessel with everything belonging to her and the Vessel is fully
paid for.
If the payment of the instalment due is delayed for less than 7 running days or for
reason beyond the Charterers control, the right of withdrawal under the terms of
Clause 10(e) of Part II shall not be exercised. However, any delay in payment of the
instalment due shall entitle the Owners to an interest at the rate per annum as
agreed in Box 22. If Box 22 has not been filled in the current market rate in the
country where the Owners have their Principal Place of Business shall apply.

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with the purchase and registration under Buyers flag, shall be for Buyers
account. Any taxes, consular and other charges and expenses connected with
closing of the Sellers register, shall be for Sellers account.
In exchange for payment of the last months hire instalment the Sellers shall
furnish the Buyers with a Bill of Sale duly attested and legalized, together with a
certificate setting out the registered encumbrances, if any. On delivery of the
Vessel the Sellers shall provide for deletion of the Vessel from the Ships Register
and deliver a certificate of deletion to the Buyers.
The Sellers shall, at the time of delivery, hand to the Buyers all classification
certificates (for hull, engines, anchors, chains, etc.), as well as all plans which
may be in Sellers possession.

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32
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34

In the following paragraphs the Owners are referred to as the Sellers and the
Charterers as the Buyers.

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13

The Wireless Installation and Nautical Instruments, unless on hire, shall be

included in the sale without any extra payment.

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36

The Vessel shall be delivered by the Sellers and taken over by the Buyers on
expiration of the Charter.

14
15

The Sellers guarantee that the Vessel, at the time of delivery, is free from all
encumbrances and maritime liens or any debts whatsoever other than those
arising from anything done or not done by the Buyers or any existing mortgage
agreed not to be paid off by the time of delivery. Should any claims, which have
been incurred prior to the time of delivery be made against the Vessel, the Sellers
hereby undertake to indemnify the Buyers against all consequences of such
claims to the extent it can be proved that the Sellers are responsible for such
claims. Any taxes, notarial, consular and other charges and expenses connected

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The Vessel with everything belonging to her shall be at Sellers risk and expense
until she is delivered to the Buyers, subject to the conditions of this Contract and
the Vessel with everything belonging to her shall be delivered and taken over as
she is at the time of delivery, after which the Sellers shall have no responsibility for
possible faults or deficiencies of any description.

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The Buyers undertake to pay for the repatriation of the Captain, officers and other
personnel if appointed by the Sellers to the port where the Vessel entered the
Bareboat Charter as per Clause 2 (Part II) or to pay the equivalent cost for their
journey to any other place.

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This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of
discrepancies between the original BIMCO approved document and this computer generated document.

BARECON 89 Standard Bareboat Charter

PART V
PROVISIONS TO APPLY FOR VESSELS REGISTERED IN A BAREBOAT CHARTER REGISTRY
(Optional, only to apply if expressly agreed and stated in Box 40)

Definitions
For the purpose of this PART V, the following terms shall have the meanings
hereby assigned to them:
The Bareboat Charter Registry shall mean the registry of the State whose flag
the Vessel will fly and in which the Charterers are registered as the bareboat
charterers during the period of the Bareboat Charter.
The Underlying Registry shall mean the registry of the State in which the Owners
of the Vessel are registered as Owners and to which jurisdiction and control of the
Vessel will revert upon termination of the Bareboat Charter Registration.
Mortgage
The Vessel chartered under this Charter is financed by a mortgage and the

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provisions of Clause 11 (b) (Part II) shall apply.

12

Termination of Charter by Default

It the Vessel chartered under this Charter is registered in a Bareboat Charter
Registry as stated in Box 41, and if the Owners shall default in the payment of any
amounts due under the mortgage(s) specified in Box 26, the Charterers shall, if so
required by the mortgagee, direct the Owners to re-register the Vessel in the
Underlying Registry as shown in Box 42.
In the event of the Vessel being deleted from the Bareboat Charter Registry as
stated in Box 41, due to a default by the Owners in the payment of any amounts due
under the mortgage(s), the Charterers shall have the right to terminate this
Charter forthwith and without prejudice to any other claim they may have against
the Owners under this Charter.

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This document is a computer generated BARECON 89 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of
discrepancies between the original BIMCO approved document and this computer generated document.