At the expiration of the second extended term, Charterer is given the right to extend said term for an additional period of one (1) year upon giving written notice to Owner of its exercise of said option not later than thirty (30) days prior to September 15, 1981. ARTICLE IIT HIRE FOR VESSEL Charterer agrees to pay the Owner hire for the vessel and its crew in the sum of $46,000.00 per month for each month of the term of the initial period of the charter. The first month's hire shall be paid to Owner one (1) calendar - month after the commencement of the term of said charter as hereinabove provided and like monthly payments shall be made each month thereafter, the last month's hire being prorated should the term of the hire terminate prior to the end of one (1) full calendar month. The hire for additional terms of the charter shall be negotiated between Owner and Charterer and in the event said parties are unable to agree upon the amount of the monthly hire for the extended term or terms, Owner may, at its option, terminate this charter. It is agreed that if the hire is not determined and agreed upon on or before the fifteenth day preceding the expiration of the initial or any extended term, Owner may then exercise its right to terminate the charter. ARTICLE IV DELIVERY AND REDELIVERY It is contemplated that immediately upon the execution of this charter, the vessel must be converted to fit it for the intended use of the charter and in order to accommodate the desires and needs of the Charterer. The scope of the work as to conversions, modifications, and changes is stated on Attachment A to this Charter Party. Said vessel shall be fitted to accommodate 12 scientific personnel to be brought aboard by Charterer. Owner agrees to use his best efforts to prepare the vessel for departure from the Port of San Diego, California, on or about December 16, 1978. It is agreed that the Charterer will pay to the Owner the amount of $50,000.00 as full payment for the conversion, modifications, and changes stated on Attachment A. Payment for all such modifications and changes made in accordance with Attachment A shall be paid by Charterer in addition to all other sums herein provided. The total payment for such work shall be made to Owner prior to the departure of said vessel from the Port of San Diego, California, as hereinabove provided. . , ARTICLE V CONDITION OF VESSEL AND SURVEY Owner warrants that the vessel. on delivery to the Charterer shall be seaworthy, clean, tight, staunch, strong, and well and sufficiently tackled, appareled, ~ a 500843 2