OFFICE OF THE ADMIRALTY MARSHAL
Supreme Court
Gibraltar

ADMIRALTY MARSHAL’S CONDITIONS OF SALE

A. All bids are to be submitted in writing to the office of Howe Robinson Partners (Gibraltar)
Limited, Suite 4, 3rd Floor, Leon House, 1 Secretary’s Lane, Gibraltar, either
(i) in a sealed envelope marked with the name of the vessel (see online bid
page to download and print off the correct form.)

or
(ii) by fax to Howe Robinson Partners (Gibraltar) Limited, by (fax number +350 20075730)
(see online bid page to download and print off the correct form.)

or
(iii) via the on-line bid form (see www.hrpauctions.com)

B. Bids must be received at the office of Howe Robinson Partners (Gibraltar) Limited, by latest
noon Gibraltar local time on the day as advertised. However fax and on-line bids
should not be sent more than 36 hours earlier.

C. All bidders, or their appointed Agents, will be notified by fax or e-mail by
Howe Robinson Partners (Gibraltar) Ltd, acting on behalf of the Admiralty Marshal, as to the
outcome of sale.

SUBJECT MATTER OF SALE

1. In these conditions the expression ‘the Vessel’ means the Vessel agreed to be sold
with everything on board belonging to her, but excluding any equipment on hire
(see clause 13).

2. The Buyer shall take over and pay extra for the unused bunker fuel and lubricants
remaining on board her (if any) in accordance with clauses 5,6 and 7 below.

BASIS OF SALE

3. The Buyer undertakes that in making his offer, he has not relied upon any
information which he may have been given by or on behalf of the Admiralty
Marshal, or the Admiralty Marshal’s broker and that he has relied solely upon his
own inquiries and/or inspection.

4. The Vessel is sold on a strictly ‘as is/where lies’ basis as at the date of the sale with
all her faults and all errors of description whatsoever. The Buyers shall not be
entitled to reject the Vessel nor to claim any damages or diminution in price, by
reason of any fault of, or in, the Vessel, or any error of description whatever.

5. Payment shall be made by the Buyer in cash in Sterling, United States Dollars or in Euros in
Gibraltar to the Admiralty Marshal, net of all bank charges, as follows -

(a) within three Gibraltar banking days of acceptance of the offer, 10 pct of the
purchase price;
(b) within five Gibraltar banking days after receipt of the 10 pct referred to in
(a) above;
(i) the balance of 90 pct of the purchase price, and
(ii) a sum in respect of bunker fuel and lubricants (if any) calculated in accordance
with clause 6.

6. The sum (if any) payable in respect of unused bunker fuel and lubricating oil shall
be calculated by reference to -

(i) the quantities (if any) remaining on board, unused, on the day of the Admiralty
Marshal’s acceptance of the offer, allowances being calculated to cover the
period from the sale of the vessel up to the time of physical delivery as per 5(b)
above and

(ii) the current delivered prices ruling in Gibraltar at the time of the sale.

The quantities and prices shall be determined by the Admiralty Marshal or the Court
appointed Surveyor and shall be deemed as binding and non negotiable.

7. On completion of the payments referred to in clause 5 the Admiralty Marshal shall
give and the Buyer shall take immediately delivery of the Vessel (together with her
bunker fuel and lubricating oil).

8. If the Buyer requires delivery of the Vessel to an Agent such Agent must produce
the Buyer’s written authority to that effect, signed by the Buyer and addressed to
the Admiralty Marshal.

9. On delivery the Buyer shall receive the Admiralty Marshal’s Bill of Sale for the
Vessel, showing the vessel to be free of all mortgages, maritime liens or any other
debts, together with any documents belonging to the Vessel which are in the
Admiralty Marshal’s possession.
On receipt of the Admiralty Marshal’s Bill of Sale, the Buyer shall sign a protocol of
delivery, duly acknowledging and accepting full responsibility for the vessel and will
thereafter become responsible for the deletion of the vessel from the Ship’s
Register as applicable to the vessel at the time of the vessel’s sale.

RISK etc.

10. The Vessel shall be at the Buyer’s risk from the time when the payments referred to
in clause 5 (b) are made or become due, whichever is earlier, and from that time all
expenses relating to the Vessel, including dock, port, anchorage charges and other
dues, shall be for the Buyer’s account.

11. If the Vessel is lost, destroyed or damaged in any way whatsoever before the risks
in the Vessel have passed to the Buyer under clause 10, the Admiralty Marshal may
rescind the contract of sale by notice in writing to the Buyer and repaying to the
Buyer, without interest or cost of compensation, any sums the Buyer has paid under
clause 5.

DEFAULT OF BUYER

12. If the Buyer is in default in making any of the payments referred to in clause 5, or is
in any other respect whatsoever in breach of any of these conditions, the Admiralty
Marshal shall have the right to exercise all or any of the following rights -

(a) by notice in writing rescind the contract and/or the sale;
(b) if the Buyer has made the payment referred to in clause 5(a) declare it to be
forfeited to him;
(c) resell the Vessel by public or private sale;
(d) recover from the Buyer all losses, damages costs and expenses caused by the
Buyer’s default including, in the event of such resale, any loss suffered as a
result thereof;
(e) if the Buyer has made further payments besides that referred to in clause 5(a)
retain in satisfaction, or part satisfaction, of the right or recovery given by
sub-clause (d) above, the whole or part of such further payments not without
prejudice to any other means of enforcing such right.

EQUIPMENT ON HIRE

13. If any equipment of any kind on board the Vessel is on hire, it shall not be included
in the sale but the Buyer shall make his own arrangements in respect of such
equipment with its Owners, and if he fails to do so shall indemnify the Admiralty
Marshal in respect of any claims arising from such failure.

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Head Office

Howe Robinson Partners (UK) Ltd,
40 Gracechurch Street,
London EC3V 0BT.

Tel: +44 20 7457 8435
Email :

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