by and among NIGERIANPORTS AUTHORITY as the Lessor. BUREAUOF PUBLIC ENTERPRISES as the Confirming Party. and APAPA BULK TERMINAL LIMITED as the Lessee Apapa Port Terminal A. Dated as of 24th day of October, 2005 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS; INTERPRETATION .........................................................................8 1.1 Definitions............................................................................................................... 8 1.2 Interpretation........................................................................................................... 12 ARTICLE I1 EFFECTIVE DATE AND TERM ..............................................................................13 2.1 Effective Date ......................................................................................................... 13 2.2 Term ...................................................................................................................... 13 ARTICLE I11 BASIC LEASE RIGHTS AND OBLIGATIONS ......................................................13 3.1 Lease .......................................................................................................................13 3.2 Transfer of the Lease Property................................................................................... 12 3.3 Peaceful and Quiet Enjoyment.................................................................................. 14 3.4 Lease Fees............................................................................................................... 14 3.5 Common Areas ........................................................................................................ 14 3.6 Berths........................................................................................................................ 14 3.7 Access to Other Property.............................. .. .........................................................15 ARTICLE IV USE OF LEASE PROPERTY ..................................................................................15 4.1 Permitted Use of Lease Property.................... .. .........................................................15 4.2 Alteration of Lease Property......................................................................................... 15 4.3 Maintenance............................................................................................................. 17 4.4 Quay Walls and navigational aids on the Premises.................... .. ............................ 17 4.5 Utilities.................... .. ..... ...... ................................................................................18 4.6 Office Space ........................... .. ..............................................................................18 4.7 Disposal of Movable Assets .........................................................................................18 4.8 Access to Lease Property............................................................................................. 18 ARTICLE V OPERATIONS .......................................................................................................19 5.1 Obligation of Lessee to Perform Operations............................ .. ..................................19 5.2 Common User Terminal ........................................................................................... 19 5.3 Performance of Additional Services ..................... ......................................................19 5.4 Use of Lease Property................................................................................................. 19 5.5 Exclusivity................................................................................................................. 20 5.6 Standards of Performance........................................................................................ 20 5.7 Duties to Cooperate................................................................................................. 20 5.8 Performance Requirements.......................................................................................... 20 5.9 Operations Rates....................................................................................................... 22 5.10 Labour ......................................................................................................................23 5.11 Lessee Equipment....................................................................................................... 23 5.12 Spare Parts and Consumables...................................................................................... 24 5.13 Financing of Operations............................................................................................... 24 ARTICLE VI CONDITIONS PRECEDENT................................................................................. 24 6.1 Conditions to Obligations of Each Party ........................... .. ........................................24 6.2 Conditions to Obligations of Lessor ..............................................................................25 6.3 Conditions to Obligations of Lessee .......................................................................... 25 6.4 Satisfaction of Conditions ........................................ ....................................................26 ARTICLE VII LESSEE'S COVENANTS...................................................................................... 27 7.1 Insurance................................................................................................................ 27 7.2 Safety; Security......................................................................................................... 27 7.3 Environment............................................................................................................ 28 7.4 Emergencies.............................................................................................................. 29 7.5 Information; Communication....................................................................................... 29 7.6 Dredging; Mooring..................................................................................................... 29 7.7 Lessee Ownership Structure...................................................................................... 29 7.8 Taxes ......................................................................................................................29 7.9 Licenses; Permits..................................................................................................... 29 BPE/WA & Apapa Bulk Terminal Ltd. (Lease Agreement Apapa Port Terminal 'A 7 2 7.10 Non Compliance....................................................................................................... 29 ARTICLE VIII LESSOR'S COVENANTS ...................................................................................30 8.1 Cooperation............................................................................................................ 30 8.2 No Interference ..................................... ................................................................... 30 8.3 Port Access .............................................................................................................. 30 8.4 Berth and navigational assets within the Premises ...................................................... 30 8.5 Port Services; Vessel Management............................................................................. 30 8.6 Dredging............................ .. ....................................................................................31 8.7 Waste Disposal..................... .. .................. .............................................................. 31 8.8 Latent Defects........................................................................................................ 31 8.9 Access to Premises................................................................................................... 31 8.10 Utilities 1nfrastructure;Rights of Way ............................................................................31 8.11 Utilities ............. ......................................................................................................31 8.12 Security.................................................................................................................. 31 8.13 Lessor Obligation to Remediate .................................................................................. 31 8.14 Licenses; Permits..................................................................................................... 31 8.15 Taxes .......................... ..........................................................................................30 8.16 Non Compliance.................. .. ....................................................................................30 ARTICLE IX FORCE MAJEURE ................................................................................................32 9.1 Effect of Force Majeure............................................................................................. 32 9.2 Notice........................... .. .......................................................................................32 9.3 Satisfactory Solution............................ .... ....................................................................32 9.4 Termination .............................................................................................................32