CONFIDENTIAL

Title :TIME CHARTER OUT OPERATION

Date Effective :01st March 2012

Doc. No:BUA-OPR-PR-02

Revision :0

Page1 of 6

1. OBJECTIVE

To ensure smooth operation of all time charter vessels as per Charter Party term & condition.

2. SCOPE OF APPLICATION

This procedure covers monitoring the vessel movement and performance specific to vessels chartered out to Charterer.

3. RESPONSIBILITY

3.1. Operation Supervisor and/or Operation Staff is responsible to ensure time-charter vessel operation is well-maintained as per Charter Party

3.2. Operation Supervisor and/or Operation Staff is responsible to minimize/avoid of the claim caused by substandard performance of the vessel as per Charter Party term & condition.

3.3. Operation Supervisor and/or Operation Staff is responsible to arrange process of delivery/redelivery vessel in a smooth operation to Charterer according to Time Charter Party.

3.4. Operation Supervisor and/or Operation Staff is responsible to check and monitoring the ship movement and make a weekly schedule and Monthly Vessel Performance Report to General Manager Commercial regarding operation vessel activities.

4.

PROCEDURE

4.1.

VESSEL DELIVERY PROCEDURE

4.1.1 Upon receiving copy of Charter Party from Marketing Department, Operation Supervisor and/or Operation Staff will arrange and control the process of delivery vessel in a smooth operation to Charterer according to charter requirement.

4.1.2 Operation Supervisor and/or Operation Staff shall monitor vessel schedule and coordinate with Ship Manager to ensure vessel readiness for delivery.

4.1.3 Operation Supervisor and/or Operation Staff shall make a confirmation from Ship Manager that vessel is ready for delivery to Charterer with condition meets the agreed requirement.

4.1.4 Operation Supervisor and/or Operation Staff shall send Delivery Notice to Charterer as per agreed with Charter Party.4.1.5 Operation Supervisor and/or Operation Staff shall appoint agent at delivery port to arrange vessel clearance in and on hire survey.

4.1.6 Soon after vessel arrives at the delivery port, if required by Charter Party, surveyor will conduct on hire survey, and after the vessel pass the inspection Master shall tender the Notice of Readiness.

4.1.7 Operation Supervisor and/or Operation Staff shall collect the on-hire survey report (if any), Delivery Certificate.

4.1.8 Operation Supervisor and/or Operation Staff shall make bunker remaining on board (ROB) calculation and pass the document together with copy of Delivery Certificate and bunker supply invoice to Accounting Department for billing purposes.

4.2.MONITORING AND EVALUATING VESSEL PERFORMANCE PROCEDURE4.2.1 Operation Supervisor and/or Operation Staff shall monitor and evaluate the vessel performance are met in effective and efficient means for qualified services as per Charter Party and prepare Monthly Vessel Performance Report and submit to General Manager Commercial.

4.2.2 Operation Supervisor and/or Operation Staff shall monitor the vessels movement and performance during time charter by reviewing report from Master (arrival report, port activity, departure report, noon report) in order to ensure vessel meets Charterers requirement as per charter party.4.2.3 Operation Supervisor and/or Operation Staff shall immediately coordinate with the Ship Manager to rectify any declining in vessel performance that may result in substandard performance.4.2.4 Operation Supervisor and/or Operation Staff shall inform Ship Management Controller for any vessel declining and or substandard performance as well as progress of rectification carried out by Ship Manager.

4.3.OUT OF SERVICE PROCEDURES

During the time charter period, vessel may experience out of service caused by regular maintenance/docking, accidental repair, and incident. In any of this case, Operation Supervisor and/or Operation Staff shall :

4.3.1 Send notice to Charterer for any docking as per charter party.

4.3.2 Coordinate with Charterer and Ship Manager if there is any repair/maintenance that will affect Charterer schedule.

4.3.3 Keep Charterer informed about docking/repair schedule or estimate repair/docking completion date.

4.3.4 Give notification to Accounting Department in case off-hire may occur.

4.3.5 Submit Off Hire Notice and On Hire Notice that received by email/fax from Master to Charterer for confirmation and Accounting Department. 4.3.6 Keep record any incident occurred.

4.4 VESSEL RE-DELIVERY PROCEDURE4.4.1 Operation Supervisor and/or Operation Staff will arrange and control the process of re-delivery vessel as per Time Charter Party.

4.4.2 Upon receiving vessel Redelivery Notice from Charterer, Operation Supervisor and/or Operation Staff will coordinate with Charterer for smooth vessel re-delivery.

4.4.3 Operation Supervisor and/or Operation Staff will appoint agent at re-delivery port to handle vessel after re-delivery.

4.4.4 Operation Supervisor and/or Operation Staff will instruct master as our representative together with surveyor to conduct off-hire survey, if required by Charter Party.

4.4.5 Operation Supervisor and/or Operation Staff shall collect re-delivery certificate.

4.4.6 Operation Supervisor and/or Operation Staff will make bunker ROB and final charter hire calculation and thereafter pass the documents together with copy of re-delivery certificate and bunker ROB to Accounting Department for billing purposes.

4.5. EXTERNAL CUSTOMER SATISFACTION AND COMPLAIN HANDLING

4.5.1. If there are feedback/complaints from Charterer regarding operation matter, Operation Supervisor and/or Operation Staff shall give quick response/acknowledgement.

4.5.2. The feedback/complaint must be properly documented in External Customer Complaint and Handling.4.5.3. Operation Supervisor and/or Operation Staff shall investigate the feedback/complaint to determine whether a non-conformance event has occurred.

4.5.4. Operation Supervisor and/or Operation Staff shall workout a necessary corrective and preventive action to address any event of non-conformance, and report to General Manager Commercial and QMR for verification of non-conformance procedures.

4.5.5. Operation Supervisor and/or Operation Staff shall prepare Customer Satisfaction Analysis every 6 months to be approved by General Manager Commercial.4.5 DESIGN & DEVELOPMENT4.5.1 Operation Supervisor and/or Operation Staff prepares the Design & Development Plan for every chartered out vessel.

4.5.2 Operation Supervisor and/or Operation Staff will verify whether the Design & Development Plan contains necessary processes, arrangements, and checkpoint to ensure that once carried out it will produce product that meet/comply with the customer requirements and/or other statutory/regulatory requirements.

4.5.3 Operation Supervisor and/or Operation Staff should validate the Design & Development Plan prior to execution.

4.5.4 General Manager Commercial will approve the Design & Development Plan.

4.5.5 During execution the Design & Development will be updated by Operation Supervisor and/or Operation Staff and will be reviewed and approved by General Manager Commercial.

4.5.6 In case of deviation of realization against initial plan, Operation Supervisor and/or Operation Staff may change/add necessary arrangements in the plan to ensure quality of final product still meet with the requirements. Change of plan should be approved/validated by General Manager Commercial.

4.5.7 Upon completion delivery the product, General Manager Commercial will review whether the resulting product is meet the requirements specified. If any deviation result, General Manager Commercial shall prepare the action plan for continual improvement.

4.5.8 Records of the Design & Development for Time Charter Out process shall be maintained accordingly.4.7STATUTORY & REGULATORY

4.1.1 Operation Supervisor and/or Operation Staff will identify the Statutory & Regulatory.

4.1.2 General Manager Commercial will decide which Statutory & Regulatory is applicable and issue the lists.

4.1.3 Lists of Statutory & Regulatory shall be kept in the file which all Operation Supervisor and/or Operation Staff has access to it.

4.1.4 General Manager Commercial will decide whether the Statutory & Regulatory still applicable with the current one and for any updated of the Statutory & Regulatory, the process will repeated from step 1.5. WORKING INSTRUCTION

6. SUPPORTING DOCUMENT

1. Statutory & Regulatory2. Job Description7. RECORDS

1. Delivery Notice

2. Redelivery Notice

3. Charter Party (BUA-OPR-F-17)

4. On Hire Notice

5. Off Hire Notice

6. Delivery Certificates

7. Redelivery Certificates

8. Incident Record

9. Weekly Schedule

10. Monthly Vessel Performance Report (BUA-OPR-F-18)

11. Design and Development (Plan/Realization) (BUA-OPR-F-19)

12. Evaluation of Fulfillment Applicable Statutory and Regulatory