At the expiration of the second cxtended term, Charterer is given the risht t to extend said term for an additional period of one (1) year upon giving writ. ie ut Taw notice to Owner of its exercise of said option not later than thirty (30) Ca prior to September 15, 1981. ARTICLE IIL HIRE FOR VESSEL Charterer agrees to pay the Owner hire for the vessel and its crew in the suv of$46,000.00pexmonthforeach month of the term of the initial period of the charter. The first month's hire shall be paid to Owner one (1) calend-:- month after the commencement of the term vf said charter as hereinabove pirovidrd and like monthly payments shall be made each month thercafter, the last rs ath's hire being prorated should the term of the hire terminate prior to the end uf one (1) full calendar month, The hire for additional terms of the charter shall be negotiated between O.unor 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 iis option, terminate this charter. It is agreed that if the hire is not detorsined and agreed upon on or before the fifteenth day preceding the expiration cf the initial or any extended term, Owner may then exercise its right to termirate the charter. t 2 : oly t ARTICLE IV . DELIVERY AND REDELIVERY . lz = It is contemplated that immediately upon the execution of this charter, “he 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, difications, and changes is stated on Attad@bment A to this Charter Party. ard” vessel shall be fitted to potentific 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 suns 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, JIS lia