Document:

Exhibit 4.106

  

  Dated 24 January 2018

  DRYSHIPS INC.

      as Corporate Guarantor

      

      

      and

      

      

      

      

      CREDIT SUISSE AG

      as Security Trustee

  GUARANTEE

  relating to

      a Loan Agreement dated 24 January 2018

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  WATSON FARLEY

  &

  WILLIAMS

  
    
      

  

  Index

  	
          Clause

        	
          Page

        
	 	 	 
	
          1

        	
          Interpretation

        	
          1

        
	
          2

        	
          Guarantee

        	
          2

        
	
          3

        	
          Liability as Principal and Independent Debtor

        	
          3

        
	
          4

        	
          Expenses

        	
          3

        
	
          5

        	
          Adjustment of Transactions

        	
          3

        
	
          6

        	
          Payments

        	
          4

        
	
          7

        	
          Interest

        	
          4

        
	
          8

        	
          Subordination

        	
          4

        
	
          9

        	
          Enforcement

        	
          5

        
	
          10

        	
          Representations and Warranties

        	
          5

        
	
          11

        	
          Undertakings

        	
          8

        
	
          12

        	
          Corporate Undertakings

        	
          13

        
	
          13

        	
          Judgments and Currency Indemnity

        	
          15

        
	
          14

        	
          Set-Off

        	 
	
          15

        	
          Supplemental

        	
          16

        
	
          16

        	
          Assignment

        	
          18

        
	
          17

        	
          Notices

        	
          18

        
	
          18

        	
          Invalidity of Loan Agreement

        	
          19

        
	
          19

        	
          Governing Law and Jurisdiction

        	
          19

        
	 	 	 
	
          Execution

        	 
	 	 
	
          Execution Page

        	
          21

        

  

  

  
    
      

  

  THIS GUARANTEE is
      made on 24 January 2018

  PARTIES

  
    
      	(1)	
              DRYSHIPS INC., a corporation incorporated in the
                  Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the "Corporate Guarantor")

            

    

  

  
    
      	(2)	
              CREDIT SUISSE AG, a company incorporated in Switzerland,
                  acting through its office at St. Alben Graben 1-3, 4051 Basel, Switzerland (the "Security Trustee", which expression includes its
                  successors and assigns)

            

    

  

  BACKGROUND

  
    
      	(A)	
              By a loan agreement dated 24 January 2018 (the "Loan
                    Agreement") and made between (i) Tortuga Owners Inc., Cecilia Owning Company Limited, Faros Owners Inc. and Regina Owners Inc. as joint and several borrowers, together the "Borrowers", (ii) the banks and financial institutions listed therein as Lenders, (iii) Credit Suisse AG as Swap Bank, (iv) Credit Suisse AG as Agent and (v) the Security Trustee, it was
                  agreed that the Lenders would make available to the Borrowers a term loan facility of up to US$90,000,000 to refinance the existing indebtedness related tom.vs. "SHIRAGA", "SAMSARA", "STAMOS" and "BALLA" (together, the "Ships").

            

    

  

  
    
      	(B)	
              By a master agreement on the 2002 ISDA Agreement form, and including the Schedule thereto (the "Master Agreement") dated 24 January 2018 and entered between (i) the Borrowers and (ii) the Swap Bank, pursuant to which the Swap Bank may agree upon the Borrowers' request and subject to the
                  Swap Bank's approval to enter into Transactions with the Borrowers from time to time.

            

    

  

  
    
      	(C)	
              By an Agency and Trust Agreement dated the same date as, and entered into pursuant to, the Loan Agreement and the Master Agreement, it was agreed that the
                  Security Trustee would hold the Trust Property (as defined in the Agency and Trust Agreement) on trust for the Lenders and the Swap Bank.

            

    

  

  
    
      	(D)	
              It is a condition precedent to the availability of the facility under the Loan Agreement and the Swap Bank entering into Transactions with the Borrowers
                  pursuant to the terms of the Master Agreement that the Corporate Guarantor executes in favour of and delivers to the Security Trustee this Guarantee (which is one of the Guarantees referred to in the Loan Agreement).

            

    

  

  OPERATIVE PROVISIONS

  
    
      	1	
              INTERPRETATION

            

    

  

  
    
      	1.1	
              Defined expressions

            

    

  

  Words and expressions defined in the Loan Agreement shall have the same meanings when used in this
      Guarantee unless the context otherwise requires.

  
    
      	1.2	
              Construction of certain terms

            

    

  

  In this Guarantee:

  "bankruptcy"

      includes a liquidation, receivership or administration and any form of suspension of payments, arrangement with creditors or reorganisation under any corporate or insolvency law of any country.

  
    
      

  

  
  

  

  "Compliance

        Certificate" means a certificate in the form set out in Schedule 1 or any other form agreed between the Corporate Guarantor and the Security Trustee.

  "GAAP"
      means generally accepted international accounting principles as from time to time set forth by the statements of International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Committee;

  "Group"
      means, together, the Corporate Guarantor and its subsidiaries for the time being and "member of the Group" shall be construed accordingly;

  "Loan
        Agreement" means the loan agreement dated 24 January 2018 referred to in Recital (A) and includes any existing or future amendments or supplements, whether made with the Corporate Guarantor's consent or otherwise.

  "Master
        Agreement" means the master agreement dated 24 January 2018 referred to in Recital (B) as from time to time amended and/or supplemented.

  
    
      	1.3	
              Application of construction and interpretation provisions of
                    Loan Agreement

            

    

  

  Clauses 1.2 to 1.6 of the Loan Agreement apply, with any necessary modifications, to this Guarantee.

  
    
      	2	
              GUARANTEE

            

    

  

  
    
      	2.1	
              Guarantee and indemnity

            

    

  

  The Corporate Guarantor unconditionally and irrevocably:

  
    
      	(a)	
              guarantees the due payment of all amounts payable by the Borrowers (or any of them)
                    and the punctual performance by the Borrowers (or any of them) of their obligations under or in connection with the Loan Agreement and every other Finance Document (including, for the avoidance of doubt, the Master Agreement);

            

    

  

  
    
      	(b)	
              undertakes to pay to the Security Trustee, on the Security Trustee's demand, any
                    such amount which is not paid by the Borrowers (or any of them) when payable; and

            

    

  

  
    
      	(c)	
              fully indemnifies the Security Trustee and each other Creditor Party on the
                    Security Trustee's demand in respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by the Security Trustee or the other Creditor Party concerned as a result of or in connection with any
                    obligation or liability guaranteed by the Corporate Guarantor being or becoming unenforceable, invalid, void or illegal; and the amount recoverable under this indemnity shall be equal to the amount which the Security Trustee or the
                    other Creditor Party concerned would otherwise have been entitled to recover.

            

    

  

  
    
      	2.2	
              No limit on number of demands

            

    

  

  The Security Trustee may serve more than one demand under Clause 2.1.

  
    2

    
      

  

  

  

  
    
      	3	
              LIABILITY AS PRINCIPAL AND INDEPENDENT DEBTOR

            

    

  

  
    
      	3.1	
              Principal and independent debtor

            

    

  

  The Corporate Guarantor shall be liable under this Guarantee as a principal and independent debtor and
      accordingly it shall not have, as regards this Guarantee, any of the rights or defences of a surety.

  
    
      	3.2	
              Waiver of rights and defences

            

    

  

  Without limiting the generality of Clause 3.1, the Corporate Guarantor shall neither be discharged by,
      nor have any claim against any Creditor Party in respect of:

  
    
      	(a)	
              any amendment or supplement being made to the Finance Documents (including, for the
                    avoidance of doubt, the Master Agreement);

            

    

  

  
    
      	(b)	
              any arrangement or concession (including a rescheduling or acceptance of partial
                    payments) relating to, or affecting, the Finance Documents (including, for the avoidance of doubt, the Master Agreement);

            

    

  

  
    
      	(c)	
              any release or loss (even though negligent) of any right or Security Interest
                    created by the Finance Documents (or any of them);

            

    

  

  
    
      	(d)	
              any failure (even though negligent) promptly or properly to exercise or enforce any
                    such right or Security Interest, including a failure to realise for its full market value an asset covered by such a Security Interest; or

            

    

  

  
    
      	(e)	
              any other Finance Document (including, for the avoidance of doubt, the Master
                    Agreement) or any Security Interest now being or later becoming void, unenforceable, illegal or invalid or otherwise defective for any reason, including a neglect to register it.

            

    

  

  
    
      	4	
              EXPENSES

            

    

  

  
    
      	4.1	
              Costs of preservation of rights, enforcement etc.

            

    

  

  The Corporate Guarantor shall pay to the Security Trustee on its demand the amount of all expenses
      incurred by the Security Trustee or any other Creditor Party in connection with any matter arising out of this Guarantee or any Security Interest connected with it, including any advice, claim or proceedings relating to this Guarantee or such a
      Security Interest.

  
    
      	4.2	
              Fees and expenses payable under Loan Agreement

            

    

  

  Clause 4.1 is without prejudice to the Corporate Guarantor's liabilities in respect of the Borrowers
      obligations under clause 20 of the Loan Agreement (fees and expenses) and under similar provisions of other Finance Documents (including, for the avoidance of doubt, the Master Agreement).

  
    
      	5	
              ADJUSTMENT OF TRANSACTIONS

            

    

  

  
    
      	5.1	
              Reinstatement of obligation to pay

            

    

  

  The Corporate Guarantor shall pay to the Security Trustee on its demand any amount which any Creditor
      Party is required, or agrees, to pay pursuant to any claim by, or settlement with,

  
    3

    
      

  

  

  

  a trustee in bankruptcy of the Borrowers (or any of them) or of another Security Party (or similar
      person) on the ground that the Loan Agreement or any other Finance Document, or a payment by the Borrowers (or any of them) or of another Security Party, was invalid or on any similar ground.

  
    
      	6	
              PAYMENTS

            

    

  

  
    
      	6.1	
              Method of payments

            

    

  

  Any amount due under this Guarantee shall be paid:

  
    
      	(a)	
              in immediately available funds;

            

    

  

  
    
      	(b)	
              to such account as the Security Trustee may from time to time notify to the
                    Corporate Guarantor;

            

    

  

  
    
      	(c)	
              without any form of set-off, cross-claim or condition; and

            

    

  

  
    
      	(d)	
              free and clear of any tax deduction except a tax deduction which the Corporate
                    Guarantor is required by law to make.

            

    

  

  
    
      	6.2	
              Grossing-up for taxes

            

    

  

  If the Corporate Guarantor is required by law to make a tax deduction, the amount due to the Security
      Trustee shall be increased by the amount necessary to ensure that the Security Trustee and (if the payment is not due to the Security Trustee for its own account) the Creditor Party beneficially interested in the payment receives and retains a net
      amount which, after the tax deduction, is equal to the full amount that it would otherwise have received.

  
    
      	7	
              INTEREST

            

    

  

  
    
      	7.1	
              Accrual of interest

            

    

  

  Any amount due under this Guarantee shall carry interest after the date on which the Security Trustee
      demands payment of it until it is actually paid, unless interest on that same amount also accrues under the Loan Agreement.

  
    
      	7.2	
              Calculation of interest

            

    

  

  Interest under this Guarantee shall be calculated and accrue in the same way as interest under clause 5
      and clause 7 of the Loan Agreement.

  
    
      	7.3	
              Guarantee extends to interest payable under Loan Agreement

            

    

  

  For the avoidance of doubt, it is confirmed that this Guarantee covers all interest payable under the
      Loan Agreement, including that payable under clause 7 of the Loan Agreement.

  
    
      	8	
              SUBORDINATION

            

    

  

  
    
      	8.1	
              Subordination of rights of Corporate Guarantor

            

    

  

  All rights which the Corporate Guarantor at any time has (whether in respect of this Guarantee or any
      other transaction) against the Borrowers (or any of them), any other Security Party or

  
    4

    
      

  

  

  

  their respective assets shall be fully subordinated to the rights of the Creditor Parties under the
      Finance Documents; and in particular, the Corporate Guarantor shall not:

  
    
      	(a)	
              claim, or in a bankruptcy of the Borrowers (or any of them), or any other Security
                    Party prove for, any amount payable to the Corporate Guarantor by the Borrowers (or any of them) or any other Security Party, whether in respect of this Guarantee or any other transaction;

            

    

  

  
    
      	(b)	
              take or enforce any Security Interest for any such amount;

            

    

  

  
    
      	(c)	
              claim to set-off any such amount against any amount payable by the Corporate
                    Guarantor to the Borrowers (or any of them) or any other Security Party; or

            

    

  

  
    
      	(d)	
              claim any subrogation or other right in respect of any Finance Document or any sum
                    received or recovered by any Creditor Party under a Finance Document (including, for the avoidance of doubt, the Master Agreement).

            

    

  

  
    
      	9	
              ENFORCEMENT

            

    

  

  
    
      	9.1	
              No requirement to commence proceedings against Borrowers

            

    

  

  Neither the Security Trustee nor any other Creditor Party will need to commence any proceedings under,
      or enforce any Security Interest created by, the Loan Agreement or any other Finance Document (including, for the avoidance of doubt, the Master Agreement) before claiming or commencing proceedings under this Guarantee.

  
    
      	9.2	
              Conclusive evidence of certain matters

            

    

  

  However, as against the Corporate Guarantor:

  
    
      	(a)	
              any judgment or order of a court in England, Marshall Islands or any other
                    Pertinent Jurisdiction in connection with the Loan Agreement or any other Finance Document; and

            

    

  

  
    
      	(b)	
              any statement or admission of the Borrowers (or any of them) in connection with the
                    Loan Agreement or any other Finance Document,

               

                  

              shall be binding and conclusive as to all matters of fact and law to which it
                    relates.

            

    

  

  
    
      	9.3	
              Suspense account

            

    

  

  The Security Trustee and any Creditor Party may, for the purpose of claiming or proving in a bankruptcy
      of the Borrowers (or any of them) or any other Security Party, place any sum received or recovered under or by virtue of this Guarantee or any Security Interest connected with it on a separate suspense or other nominal account without applying it in
      satisfaction of the Borrowers' obligations under the Loan Agreement or any other Finance Document.

  
    
      	10	
              REPRESENTATIONS AND WARRANTIES

            

    

  

  
    
      	10.1	
              General

            

    

  

  The Corporate Guarantor represents and warrants to the Security Trustee as follows.

  
    5

    
      

  

  

  

  
    
      	10.2	
              Status

            

    

  

  The Corporate Guarantor is duly incorporated and validly existing and in good standing under the laws
      of the Republic of the Marshall Islands.

  
    
      	10.3	
              Corporate power

            

    

  

  The Corporate Guarantor has the corporate capacity, and has taken all corporate action and obtained all
      consents necessary for it:

  
    
      	(a)	
              to execute this Guarantee; and

            

    

  

  
    
      	(b)	
              to make all the payments contemplated by, and to comply with, this Guarantee.

            

    

  

  
    
      	10.4	
              Consents in force

            

    

  

  All the consents referred to in Clause 10.3 remain in force and nothing has occurred which makes any of
      them liable to revocation.

  
    
      	10.5	
              Legal validity

            

    

  

  This Guarantee does now or will upon execution and delivery constitute the Corporate Guarantor's legal,
      valid and binding obligations enforceable against the Corporate Guarantor in accordance with their respective terms and subject to any relevant insolvency laws affecting creditors' rights generally.

  
    
      	10.6	
              No conflicts

            

    

  

  The execution by the Corporate Guarantor of this Guarantee and its compliance with this Guarantee will
      not involve or lead to a contravention of:

  
    
      	(a)	
              any law or regulation; or

            

    

  

  
    
      	(b)	
              the constitutional documents of the Corporate Guarantor; or

            

    

  

  
    
      	(c)	
              any contractual or other obligation or restriction which is binding on the
                    Corporate Guarantor or any of its assets.

            

    

  

  
    
      	10.7	
              No withholding taxes

            

    

  

  All payments which the Corporate Guarantor is liable to make under this Guarantee may be made without
      deduction or withholding for or on account of any tax payable under any law of any Pertinent Jurisdiction.

  
    
      	10.8	
              No default

            

    

  

  To the knowledge of the Corporate Guarantor, no Event of Default or Potential Event of Default has
      occurred.

  
    
      	10.9	
              Information

            

    

  

  All information which has been provided in writing by or on behalf of the Corporate Guarantor to the
      Security Trustee or any other Creditor Party in connection with any Finance Document (including, for the avoidance of doubt, the Master Agreement) satisfied the requirements of

  
    6

    
      

  

  

  

  Clause 11.4, all audited and unaudited accounts which have been so provided satisfied the requirements
      of Clause 11.6 and there has been no material adverse change in the financial position or state of affairs of the Corporate Guarantor from that disclosed in the latest of those accounts.

  
    
      	10.10	
              No litigation

            

    

  

  No legal or administrative action involving the Corporate Guarantor (other than as disclosed to the
      Security Trustee at the date of this Guarantee) or a Borrower (including, without limitation, any action relating to any alleged or actual breach of the ISM Code and ISPS Code) has been commenced or taken or, to the Corporate Guarantor's knowledge,
      is likely to be commenced or taken and which can clearly be considered material in the context of any Finance Document.

  
    
      	10.11	
              Taxes paid

            

    

  

  The Corporate Guarantor has paid all taxes applicable to, or imposed on or in relation to the Corporate
      Guarantor, its business or the Ships.

  
    
      	10.12	
              ISM Code, ISPS Code and Environmental Law compliance

            

    

  

  All requirements of the ISM Code and ISPS Code and any Environmental Law as they relate to the
      Corporate Guarantor, the Borrowers and the Ships have been complied with.

  
    
      	10.13	
              No immunity

            

    

  

  Neither the Corporate Guarantor, nor any of its assets are entitled to immunity on the grounds of
      sovereignty or otherwise from any legal action or proceeding (which shall include, without limitation, suit attachment prior to judgement, execution or other enforcement).

  
    
      	10.14	
              No money laundering

            

    

  

  In relation to the borrowing by the Borrowers of the Loan, the performance and discharge of its
      obligations and liabilities under this Guarantee, and the transactions and other arrangements effected or contemplated by the Finance Documents to which any Borrower is a party, the Corporate Guarantor confirms (i) that it is acting for its own
      account; (ii) that it will use the proceeds of the Loan for its own benefit, under its full responsibility and exclusively for the purposes specified in the Loan Agreement, and (iii) that the foregoing will not involve or lead to a contravention of
      any law, official requirement or other regulatory measure or procedure implemented to combat "money laundering" (as defined in Article 1 of Directive 2015/849/EC of the European Parliament and of the Council and/or Article 305 bis of the Swiss Penal
      Code).

  
    
      	10.15	
              Sanctions

            

    

  

  The Corporate Guarantor, its directors and/or officers are not, nor act directly or indirectly on
      behalf of, a Restricted Party (as defined in Clause 11.14).

  
    
      	10.16	
              Repetition

            

    

  

  The representations and warranties of the Corporate Guarantor set out in this Clause 10 shall survive
      the execution of the Guarantee and shall be deemed to be repeated at the

  
    7

    
      

  

  

  

  commencement of each Interest Period and, if different, on each Repayment Date, with respect to the
      facts and circumstances existing at each such time, as if made at each such time.

  
    
      	11	
              UNDERTAKINGS

            

    

  

  
    
      	11.1	
              General

            

    

  

  The Corporate Guarantor undertakes with the Security Trustee to comply with the following provisions of
      this Clause 11 (Undertakings) at all times during the Security Period, except as the Agent may, with the authority of the Majority Lenders,
      otherwise permit.

  
    
      	11.2	
              No disposal of assets

            

    

  

  The Corporate Guarantor shall procure that no Borrower nor the Shareholder will transfer, lease or
      otherwise dispose of all or a substantial part of its assets, whether by one transaction or a number of transactions, whether related or not except in the usual course of its trading operations for full market value.

  
    
      	11.3	
              Change of business

            

    

  

  The Corporate Guarantor shall not, and shall procure that no other Security Party will, make any
      substantial change to the nature of its business from that existing at the date of this Guarantee.

  
    
      	11.4	
              Information provided to be accurate

            

    

  

  All financial and other information which is provided in writing by or on behalf of the Corporate
      Guarantor under or in connection with this Guarantee will be true and not misleading and will not omit any material fact or consideration.

  
    
      	11.5	
              Provision of financial statements

            

    

  

  The Corporate Guarantor will send to the Security Trustee:

  
    
      	(a)	
              as soon as possible, but in no event later than 180 days after the end of each
                    financial year of the Corporate Guarantor (commencing with the financial year ended on 31 December 2017) the annual audited consolidated financial statements of the Group certified as to their correctness by the chief financial officer
                    or any other authorised officer or any other authorised person of the Corporate Guarantor;

            

    

  

  
    
      	(b)	
              as soon as possible, but in no event later than 90 days after the end of each
                    quarter in each financial year of the Corporate Guarantor (commencing with the three-month period ending on 31 March 2018), the unaudited consolidated financial statements of the Group for that quarter, certified as to their correctness
                    by the chief financial officer or any other authorised officer or any other authorised person of the Corporate Guarantor;

            

    

  

  
    
      	(c)	
              promptly after each request by the Security Trustee, such further financial or
                    other information in respect of the financial condition, commitments and operation of any Borrower, any Ship, the Corporate Guarantor and any other member of the Group.

            

    

  

  
    
      	11.6	
              Form of financial statements

            

    

  

  All accounts (audited and unaudited) delivered under Clause 11.5 will:

  
    8

    
      

  

  

  

  
    
      	(a)	
              be prepared in accordance with all applicable laws and GAAP is applied;

            

    

  

  
    
      	(b)	
              give a true and fair view of the state of affairs of the Borrowers, the Corporate
                    Guarantor and the Group at the date of those accounts and of its profit for the period to which those accounts relate; and

            

    

  

  
    
      	(c)	
              fully disclose or provide for all significant liabilities of the Borrowers, the
                    Corporate Guarantor and the Group.

            

    

  

  
    
      	11.7	
              Shareholder and creditor notices

            

    

  

  The Corporate Guarantor will send the Security Trustee, upon its request, copies of all communications
      which are despatched to the Corporate Guarantor's shareholders or creditors or any class of them unless it is clear that such communications cannot be considered material in the context of any Finance Document.

  
    
      	11.8	
              Consents

            

    

  

  The Corporate Guarantor will maintain in force and promptly obtain or renew, and will promptly send
      certified copies to the Security Trustee of, all consents required:

  
    
      	(a)	
              for the Corporate Guarantor to perform its obligations under this Guarantee; and

            

    

  

  
    
      	(b)	
              for the validity or enforceability of this Guarantee, and the Corporate Guarantor
                    will comply with the terms of all such consents.

            

    

  

  
    
      	11.9	
              Notification of litigation

            

    

  

  The Corporate Guarantor will provide the Security Trustee with details of any legal or administrative
      action involving the Corporate Guarantor (other than as disclosed to the Security Trustee at the date of this Guarantee}, any Borrower, any other Security Party, the Approved Manager or any Ship as soon as such action is instituted or it becomes
      apparent to the Corporate Guarantor that it is likely to be instituted, unless it is clear that the legal or administrative action cannot be considered material in the context of any Finance Document.

  
    
      	11.10	
              Notification of default

            

    

  

  The Corporate Guarantor will notify the Security Trustee as soon as the Corporate Guarantor becomes
      aware of:

  
    
      	(a)	
              the occurrence of an Event of Default or a Potential Event of Default; or

            

    

  

  
    
      	(b)	
              any matter which indicates that an Event of Default or a Potential Event of Default
                    may have occurred,

            

    

  

  and will thereafter keep the Security Trustee fully up-to-date with all developments.

  
    
      	11.11	
              Provision of further information

            

    

  

  The Corporate Guarantor will, upon receiving the request, provide the Security Trustee with any
      additional financial or other information relating:

  
    9

    
      

  

  

  

  
    
      	(a)	
              to the Borrowers, the Group, the Corporate Guarantor, the Ships, the Shareholder,
                    the Insurances or the Earnings; or

            

    

  

  
    
      	(b)	
              to any other matter relevant to, or to any provision of or a Finance Document,

            

    

  

  which may be required by the Security Trustee or any other Creditor Party at any time.

  
    
      	11.12	
              "Know your customer" checks

            

    

  

  If:

  

  

  
    
      	(a)	
              the introduction of or any change in (or in the interpretation, administration or
                    application of) any law or regulation made after the date of this Guarantee; or

            

    

  

  
    
      	(b)	
              any change in the status of the Corporate Guarantor after the date of this
                    Guarantee;

            

    

  

  obliges the Security Trustee to comply with "know your customer" or similar identification procedures
      in circumstances where the necessary information is not already available to it, the Corporate Guarantor shall promptly upon the request of the Security Trustee supply, or procure the supply of, such documentation and other evidence as is reasonably
      requested by the Security Trustee in order for the Security Trustee to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions
      contemplated in the Guarantee.

  
    
      	11.13	
              Provision of copies and translation of documents

            

    

  

  Upon the Security Trustee's request, the Corporate Guarantor will supply the Security Trustee with a
      sufficient number of copies of the documents referred to above; and if the Security Trustee so requires in respect of any of those documents, the Corporate Guarantor will provide a certified English translation prepared by a translator approved by
      the Security Trustee.

  
    
      	11.14	
              Sanctions

            

    

  

  
    
      	(a)	
              The Corporate Guarantor understands that the Creditor Parties - be it due to
                    applicable laws and/or internal rules and regulations - are prohibited from conducting business in relation to Restricted Countries or Restricted Parties.

            

    

  

  
    
      	(b)	
              The Corporate Guarantor confirms and undertakes that it will not transfer, make use
                    of, or provide the benefit of, any funds received from, or services provided by, any Creditor Party to any Restricted Parties, or conduct, permit or allow any business activity related to the Ships (including, but not limited to,
                    entering into any acquisition agreement, a (re-) financing or any charter in relation to the Ships) or related to any other Relevant Asset with any Restricted Parties or for business activities that are subject to Sanctions.

            

    

  

  
    
      	(c)	
              This Clause 11.14 shall not be interpreted as restricting charterers or
                    sub-charterers to use the Ships to conduct occasional business activities with Restricted Parties or Restricted Countries (and for the purpose of this Clause 11.14, occasional business activities means activities where it is not the
                    main purpose of such chartering contract to conduct business activities with Restricted Parties or Restricted Countries) provided such business activities are not subject to restrictions under any of the sanctions regimes as enumerated
                    in the definition of "Restricted Parties" (irrespective of whether or not the restrictions imposed by such sanctions regimes apply to the concerned business activity).

            

    

  

  
    10

    
      

  

  

  

  
    
      	(d)	
              In addition and without prejudice to the foregoing, the Corporate Guarantor shall
                    procure that no proceeds, funds or benefit from any activity or dealing with Restricted Parties are used in discharging any obligation due or owing to the Creditor Parties or are credited to any bank account held with any Creditor
                    Party, and that no payment to a Restricted Party is effected, whether to discharge any obligation due or owing to such person or for any other purpose, through the use of any bank account held with any Creditor Party.

            

    

  

  In this Clause 11.14:

  "Relevant

        Asset" means the Ships or any other vessel, asset or project in relation to which funds have been received from, or services have been provided by, the Creditor Parties;

  "Restricted

        Countries" means, as of the date of this Guarantee, Cuba, Iran, North Korea, Sudan, Syria, the region of Crimea and/or any other country or region subject to Sanctions, as notified from time to time to the Borrowers and/or the Corporate
      Guarantor by the Agent and/or the Security Trustee;

  "Restricted

        Parties" means any person, entity or party: (i) located, domiciled, resident or incorporated in a Restricted Country; or (ii) the government of a Restricted Country; or (iii) subject to Sanctions; or (iv) controlling, controlled by, or
      under common control with, any person, entity or party referred to under (i) to (iii) above; and

  "Sanctions"

      means any economic sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by (i) the United Nations; (ii) the European Union; (iii) the United States Treasury Department's Office of Foreign Assets
      Control ("OFAC"); (iv) the State Secretariat for Economic Affairs of Switzerland ("SECO") or the Swiss Directorate of International Law ("DIL"); (v) HM Treasury of the United Kingdom; (vi) the Monetary Authority of Singapore ("MAS") and (vii) the
      Hong Kong Monetary Authority ("HKMA") and/or any other body notified from time to time in writing to the Borrowers and/or the Corporate Guarantor by the Agent and/or the Security Trustee.

  
    
      	11.15	
              Anti-Corruption

            

    

  

  
    
      	(a)	
              The Corporate Guarantor shall not (and shall procure that none of the Borrowers or
                    any Security Party will) directly or indirectly use the proceeds of the Loan for any purpose which would breach or might breach applicable anti-corruption laws, including, but not limited to, the UK Bribery Act of 2010 and the United
                    States Foreign Corrupt Practices Act of 1977, each as amended.

            

    

  

  
    
      	(b)	
              The Borrowers shall (and shall procure that each Security Party will):

            

    

  

  
    
      	

            	(i)	
              conduct its business in compliance with applicable anti-corruption laws and regulations; and

            

    

  

  
    
      	

            	(ii)	
              maintain effective policies and procedures designed to promote and achieve compliance with such laws and regulations.

            

    

  

  
    
      	11.16	
              Financial covenants

            

    

  

  The Corporate Guarantor shall ensure that at all times the following covenants shall be complied with:

  
    
      	(a)	
              the Working Capital shall be greater than zero;

            

    

  

  
    11

    
      

  

  

  

  
    
      	(b)	
              it has Cash and Cash Equivalents of at least $15,000,000; and

            

    

  

  
    
      	(c)	
              the ratio of Total Net Liabilities to Net Market Value Adjusted Total Assets shall
                    be less than 50 per cent.; and

            

    

  

  
    
      	(d)	
              it has a Market Value Adjusted Net Worth of at least $150,000,000.

            

    

  

  In this Clause 11.16 (financial covenants):

  "Cash
        and Cash Equivalents" means, at any relevant time, the aggregate of:

  
    
      	

            	(a)	
              cash in hand or on deposit with any bank; and

            

    

  

  
    
      	

            	(b)	
              any other instrument, security or investment approved by the Majority Lenders,

            

    

  

  which are free from any Security Interest and/or restrictions and to which any member of the Group is
      beneficially entitled at that time and which are readily available to the members of the Group and capable of being applied against any Financial Indebtedness, but also including any cash deposit which is blocked and/or otherwise restricted and/or
      subject to a Security Interest if the sole purpose of such deposit and/or restriction and/or Security Interest is the maintenance of a minimum liquidity covenant under borrowing arrangements of any member of the Group, as demonstrated by the Latest
      Financial Statements.

  "Current

        Assets" means, at any relevant time, the amount of the current assets of the Corporate Guarantor and the members of the Group (on a consolidated basis) as shown in the Latest Financial Statements.

  "Current

        Liabilities" means, at any relevant time, the amount of the current liabilities of the Corporate Guarantor and the members of the Group (on a consolidated basis) falling due within twelve (12) months from the relevant Testing Date less the
      current liabilities maturing after six (6) months of the relevant Testing Date, as shown in the Latest Financial Statements.

  "Fleet
        Vessels" means all vessels (including the Ships) from time to time directly or indirectly owned by members of the Group.

  "Latest
        Financial Statements" means the financial statements of the Corporate Guarantor which are required to be delivered pursuant to Clause 11.5 (provisions of financial statements) relating to a period ending on a Testing Date.

  "Market
        Value Adjusted Net Worth" means, at any relevant time, Market Value Adjusted Total Assets less Total Liabilities.

  "Market
        Value Adjusted Total Assets" means, at any relevant time, Total Assets adjusted to reflect the difference between the book values of all Fleet Vessels and the aggregate Market Value of all Fleet Vessels.

  "Net
        Market Value Adjusted Total Assets" means, at any relevant time, Market Value Adjusted Total Assets less Cash and Cash Equivalents, each as shown in the Latest Financial Statements.

  
    12

    
      

  

  

  

  "Testing

        Date" means the last date of any semi-annual period at the end of which the financial statements of the Corporate Guarantor that are required to be delivered pursuant to Clause 11.5 (provisions of financial statements) are actually delivered.

  "Total
        Assets" means, at any relevant time, the total assets of the Corporate Guarantor on a consolidated basis as shown in the Latest Financial Statements.

  "Total
        Liabilities" means, at any relevant time, the total liabilities of the Corporate Guarantor at any time on a consolidated basis as shown in the Latest Financial Statements.

  "Total
        Net Liabilities" means, at any relevant time, Total Liabilities less Cash and Cash Equivalents, each as shown in the Latest Financial Statements.

  "Working

        Capital" means, at any relevant time, Current Assets less Current Liabilities.

  
    
      	11.17	
              Testing

            

    

  

  The financial covenants set out in Clause 11.16 (financial covenants) shall be calculated on each Testing Date in accordance with GAAP and tested by reference to each of the financial statements of the Corporate Guarantor delivered pursuant to
      paragraph (a) of Clause 11.5 (provision of financial statements) or to each of the financial statements of the Corporate Guarantor in respect of
      the second quarter in each financial year of the Corporate Guarantor pursuant to paragraph (b) and/or each Compliance Certificate delivered pursuant to Clause 11.18 (compliance certificate).

  
    
      	11.18	
              Compliance certificate

            

    

  

  
    
      	(a)	
              The Corporate Guarantor shall supply to the Security Trustee, with each set of
                    financial statements delivered pursuant to paragraph (a) of Clause 11.5 (provision of financial statements) and each set of financial statements in respect of the second quarter in each financial year of the Corporate Guarantor pursuant to paragraph (b) of Clause 11.5
                    (provision of financial statements), a
                    Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 11.16 (financial covenants) as at the date as at which those financial statements were drawn up.

            

    

  

  
    
      	(b)	
              Each Compliance Certificate shall be signed by the chief financial officer or any
                    other authorised officer or any other authorised person of the Corporate Guarantor.

            

    

  

  
    
      	11.19	
              Valuation of Fleet Vessels

            

    

  

  The Market Value of the Fleet Vessels shall be determined in the same manner as the Market Value of the
      Ships in accordance with clause 15.5 (valuation of Ships) of the Loan Agreement and all related costs, fees and expenses shall be borne by the
      Corporate Guarantor.

  
    
      	12	
              CORPORATE UNDERTAKINGS

            

    

  

  
    
      	12.1	
              General

            

    

  

  The Corporate Guarantor also undertakes with the Security Trustee to comply with the following
      provisions of this Clause 12 at all times during the Security Period except as the Security Trustee may, with the authorisation of the Majority Lenders, otherwise permit.

  
    13

    
      

  

  

  

  
    
      	12.2	
              Maintenance of status

            

    

  

  The Corporate Guarantor will maintain its separate corporate existence and remain in good standing
      under the laws of the Republic of the Marshall Islands.

  
    
      	12.3	
              Maintenance of Security Interests

            

    

  

  The Corporate Guarantor will:

  
    
      	(a)	
              at its own cost, do all that it reasonably can to ensure that any Finance Document
                    to which it is a party validly creates the obligations and the Security Interests which it purports to create; and

            

    

  

  
    
      	(b)	
              without limiting the generality of paragraph (a) above, at its own cost, promptly
                    register, file, record or enrol any Finance Document to which it is a party with any court or authority in all Pertinent Jurisdictions, pay any stamp, registration or similar tax in all Pertinent Jurisdictions in respect of any Finance
                    Document to which it is a party, give any notice or take any other step which may be or become necessary or desirable for any Finance Document to which it is a party to be valid, enforceable or admissible in evidence or to ensure or
                    protect the priority of any Security Interest which it creates.

            

    

  

  
    
      	12.4	
              Negative Pledge

            

    

  

  The Corporate Guarantor shall procure that no Borrower nor the Shareholder will create or permit to
      arise any Security Interest, except for Permitted Security Interests, over any of their respective assets which are the subject of a Security Interest created or intended to be created by the Finance Documents.

  
    
      	12.5	
              No merger etc.

            

    

  

  The Corporate Guarantor shall procure that none of the Borrowers will enter into any form of merger, or
      demerger, amalgamation or any form of reconstruction or reorganisation unless arising in connection with:

  
    
      	(a)	
              a Qualified IPO (subject to clause 12.4 of the Guarantee entered into by the
                    Shareholder) and the Corporate Guarantor hereby undertakes to provide the Agent with at least 30 days' prior notice of the Shareholder's intention to proceed with a Qualified IPO and request the consent of the Agent (acting on the
                    instructions of the Lenders); or

            

    

  

  
    
      	(b)	
              a Permitted Ultimate Beneficial Ownership Change (subject to clause 19.l(k)(ii) of
                    the Loan Agreement),

            

    

  

  in which case the Corporate Guarantor shall be released from its obligations under this Guarantee
      subject to:

  
    
      	

            	(i)	
              in the case of a Qualified IPO being effected in accordance with clause 12.4 of the Guarantee entered into by the Shareholder, the Guarantee entered into by the
                  Shareholder remaining valid and in full force and effect; or

            

    

  

  
    
      	

            	(ii)	
              in the case of a Permitted Ultimate Beneficial Ownership Change being effected in accordance with clause 19.l(k)(ii) of the Loan Agreement:

            

    

  

  
    14

    
      

  

  

  

  
    
      	

            	(A)	
              the Approved Manager providing, in substitution of this Guarantee, a guarantee of all the Borrowers' obligations under the Loan Agreement and the other Finance
                  Documents in such form as the Agent (acting on the instructions of the Majority Lenders) may require by no later than the date on which the Permitted Ultimate Beneficial Ownership Change is effected; and

            

    

  

  
    
      	

            	(B)	
              in the event that the Shareholder remains the legal and direct holder of all the issued share capital of each Borrower, the Guarantee entered into by the
                  Shareholder remaining valid and in full force and effect.

            

    

  

  
    
      	12.6	
              Pari Passu

            

    

  

  The Corporate Guarantor shall procure that its liabilities under this Guarantee do and will rank at
      least pari passu with all its other present and future liabilities, except for liabilities which are mandatorily preferred by law.

  
    
      	13	
              JUDGMENTS AND CURRENCY INDEMNITY

            

    

  

  
    
      	13.1	
              Judgments relating to Loan Agreement

            

    

  

  This Guarantee shall cover any amount payable by the Borrowers under or in connection with any judgment
      relating to the Loan Agreement.

  
    
      	13.2	
              Currency indemnity

            

    

  

  In addition, clause 21.4 (currency indemnity) of the Loan Agreement shall apply, with any necessary
      adaptations, in relation to this Guarantee.

  
    
      	14	
              SET-OFF

            

    

  

  
    
      	14.1	
              Application of credit balances

            

    

  

  Each Creditor Party may without prior notice:

  
    
      	(a)	
              apply any balance (whether or not then due) which at any time stands to the credit
                    of any account in the name of the Corporate Guarantor at any office in any country of that Creditor Party in or towards satisfaction of any sum then due from the Corporate Guarantor to that Creditor Party and any other liability of the
                    Corporate Guarantor (whether actual or contingent) under any of the Finance Documents; and

            

    

  

  
    
      	(b)	
              for that purpose:

            

    

  

  
    
      	

            	(i)	
              break, or alter the maturity of, all or any part of a deposit of the Corporate Guarantor;

            

    

  

  
    
      	

            	(ii)	
              convert or translate all or any part of a deposit or other credit balance into Dollars; and/or

            

    

  

  
    
      	

            	(iii)	
              enter into any other transaction, execute such document or make any entry in the name of the Corporate Guarantor and/or the Creditor Party with regard to the
                  credit balance which the Creditor Party considers appropriate; and/or

            

    

  

  
    
      	

            	(iv)	
              to combine and/or consolidate and/or liquidate all or any accounts (whether current, deposit, loan or of any other nature whatsoever, whether subject to notice
                  or not and

            

    

  

  
    15

    
      

  

  

  

  in whatever currency) of the Corporate Guarantor with any office or branch of the Creditor Party.

  
    
      	14.2	
              Existing rights unaffected

            

    

  

  No Creditor Party shall be obliged to exercise any of its rights under Clause 14.1 (Application of credit balances); and those rights shall be without prejudice and in addition to any right of set-off, combination of accounts,
      charge, lien or other right or remedy to which a Creditor Party is entitled (whether under the general law or any document) including, without limitation, any rights of netting and set-off conferred on the Swap Bank under the Master Agreement.

  
    
      	14.3	
              Sums deemed due to a Lender

            

    

  

  For the purposes of this Clause 14 (Set-Off), a sum payable by the Corporate Guarantor to the Agent or the Security Trustee for distribution to, or for the account of, a Lender shall be treated as a sum due to that Lender; and each Lender's
      proportion of a sum so payable for distribution to, or for the account of, the Lenders shall be treated as a sum due to that Lender.

  
    
      	15	
              SUPPLEMENTAL

            

    

  

  
    
      	15.1	
              Continuing guarantee

            

    

  

  Subject to Clause 12.5, this Guarantee shall remain in force as a continuing security at all times
      during the Security Period.

  
    
      	15.2	
              Rights cumulative, non-exclusive

            

    

  

  The Security Trustee's rights under and in connection with this Guarantee are cumulative, may be
      exercised as often as appears expedient and shall not be taken to exclude or limit any right or remedy conferred by law.

  
    
      	15.3	
              No impairment of rights under Guarantee

            

    

  

  If the Security Trustee omits to exercise, delays in exercising or invalidly exercises any of its
      rights under this Guarantee, that shall not impair that or any other right of the Security Trustee under this Guarantee.

  
    
      	15.4	
              Severability of provisions

            

    

  

  If any provision of this Guarantee is or subsequently becomes void, illegal, unenforceable or otherwise
      invalid, that shall not affect the validity, legality or enforceability of its other provisions.

  
    
      	15.5	
              Guarantee not affected by other security

            

    

  

  This Guarantee shall not impair, nor be impaired by, any other guarantee, any Security Interest or any
      right of set-off or netting or to combine accounts which the Security Trustee or any other Creditor Party may now or later hold in connection with the Loan Agreement or any other Finance Document.

  
    16

    
      

  

  

  

  
    
      	15.6	
              Corporate Guarantor bound by Loan Agreement and any other
                    Finance Document

            

    

  

  The Corporate Guarantor agrees with the Security Trustee to be bound by all provisions of the Loan
      Agreement and any other Finance Document which are applicable to the Security Parties in the same way as if those provisions had been set out (with any necessary modifications) in this Guarantee.

  
    
      	15.7	
              Applicability of provisions of Guarantee to other Security
                    Interests

            

    

  

  Any Security Interest which the Corporate Guarantor creates (whether at the time at which it signs this
      Guarantee or at any later time) to secure any liability under this Guarantee shall be a principal and independent security, and Clauses 3 and 18 shall, with any necessary modifications, apply to it, notwithstanding that the document creating the
      Security Interest neither describes it as a principal or independent security nor includes provisions similar to Clauses 3 and 18.

  
    
      	15.8	
              Applicability of provisions of Guarantee to other rights

            

    

  

  Clauses 3 and 18 shall also apply to any right of set-off or netting or to combine accounts which the
      Corporate Guarantor creates by an agreement entered into at the time of this Guarantee or at any later time (notwithstanding that the agreement does not include provisions similar to Clauses 3 and 18), being an agreement referring to this Guarantee.

  
    
      	15.9	
              Third party rights

            

    

  

  A person (other than a Creditor Party) who is not a party to this Guarantee has no right under the
      Contracts (Rights of Third Parties) Act 1999 ("Third Parties Act") to enforce or to enjoy the benefit of any term of this Guarantee.

  
    
      	15.10	
              Corporate Guarantor's approval of Loan Agreement and the other
                    Finance Documents

            

    

  

  The Corporate Guarantor has read the Loan Agreement, the Master Agreement and the other Finance
      Documents and understands and approves all the terms and conditions of the Loan Agreement, the Master Agreement and the other Finance Documents.

  
    
      	15.11	
              Disclosure

            

    

  

  
    
      	(a)	
              The Corporate Guarantor authorises the Security Trustee, the Agent and each Lender
                    to disclose all information related or connected to:

            

    

  

  
    
      	

            	(i)	
              the Ships or any other vessel owned or operated by a Security Party;

            

    

  

  
    
      	

            	(ii)	
              the negotiation, drafting and content of the Loan Agreement and the other Finance Documents;

            

    

  

  
    
      	

            	(iii)	
              the Loan; or

            

    

  

  
    
      	

            	(iv)	
              any Security Party,

            

    

  

  to any service provider (included but not limited to professional advisers, auditors, lawyers,
      accountants, surveyors, valuers, insurers, insurance advisers and brokers) or to any other party (including, but not limited to, any Affiliate of the Creditor Parties) in Switzerland or abroad which that Lender may in its discretion deem necessary or
      desirable in any connection with

  
    17

    
      

  

  

  

  the Loan Agreement or any other Finance Document for the purpose of the protection or enforcement of
      the Lenders' rights under the Loan Agreement or any other Finance Document or to any person whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitrations, administrative or other
      investigations, proceedings or disputes Provided that the Agent shall procure that any recipient of information who is not subject to any
      applicable laws of confidentiality and/or duty of confidentiality pursuant to its professional code of conduct enters into a confidentiality agreement in respect of any information which is clearly confidential unless an Event of Default has
      occurred.

  
    
      	(b)	
              The Corporate Guarantor hereby release the Creditor Parties and each of their
                    Affiliates and each of their officers, directors, employees, head office, professional advisers, auditors and representatives (together, the "Disclosing Party") from any confidentiality obligations or confidentiality restrictions arising from Swiss law or other applicable
                    banking secrecy and data protection legislation which would prevent a Disclosing Party from disclosing any confidential information in accordance with this Clause 15.11 or clause 26.13 (disclosure of information) of the Loan Agreement.

            

    

  

  
    
      	16	
              ASSIGNMENT

            

    

  

  
    
      	16.1	
              Assignment by Security Trustee

            

    

  

  The Security Trustee may assign its rights under and in connection with this Guarantee to the same
      extent as it may assign its rights under the Loan Agreement.

  
    
      	17	
              NOTICES

            

    

  

  
    
      	17.1	
              Notices to Corporate Guarantor

            

    

  

  Any notice or demand to the Corporate Guarantor under or in connection with this Guarantee shall be
      given by letter or fax at:

  c/o TMS Tankers Ltd.

      Athens Licensed Shipmanagement Office

      Omega Building

      80 Kifissias Avenue

      Amarousion 15125 Greece

  Tel No.: +30 210 8090 400

      Fax No: +30 210 8090 405

  or to such other address which the Corporate Guarantor may notify to the Security Trustee.

  
    
      	17.2	
              Application of certain provisions of Loan Agreement

            

    

  

  Clauses 28.3, 28.4, 28.5, 28.7 and 28.8 of the Loan Agreement apply to any notice or demand under or in
      connection with this Guarantee.

  
    
      	17.3	
              Validity of demands

            

    

  

  A demand under this Guarantee shall be valid notwithstanding that it is served:

  
    18

    
      

  

  

  

  
    
      	(a)	
              on the date on which the amount to which it relates is payable by the Borrowers (or any of them) under the Loan Agreement or any of the other Finance Documents;
                  or

            

    

  

  
    
      	(b)	
              at the same time as the service of a notice under clause 19.2 of the Loan Agreement;

            

    

  

  and a demand under this Guarantee may refer to all amounts
      payable under or in connection with the Loan Agreement or any other Finance Document without specifying a particular sum or aggregate sum.

  
    
      	17.4	
              Notices to Security Trustee

            

    

  

  Any notice to the Security Trustee under or in connection with this Guarantee shall be sent to the same
      address and in the same manner as notices to the Security Trustee under the Loan Agreement.

  
    
      	18	
              INVALIDITY OF LOAN AGREEMENT

            

    

  

  
    
      	18.1	
              Invalidity of Loan Agreement

            

    

  

  In the event of:

  
    
      	(a)	
              the Loan Agreement now being or later becoming, with immediate or retrospective
                    effect, void, illegal, unenforceable or otherwise invalid for any other reason whatsoever, whether of a similar kind or not; or

            

    

  

  
    
      	(b)	
              without limiting the scope of paragraph (a), a bankruptcy of the Borrowers (or any
                    of them), the introduction of any law or any other matter resulting in the Borrowers (or any of them) being discharged from liability under the Loan Agreement, or the Loan Agreement ceasing to operate (for example, by interest ceasing
                    to accrue),

            

    

  

  this Guarantee shall cover any amount which would have been or become payable under or in connection
      with the Loan Agreement if the Loan Agreement had been and remained entirely valid, legal and enforceable, or the Borrowers had not suffered bankruptcy, or any combination of such events or circumstances, as the case may be, and the Borrowers had
      remained fully liable under it for liabilities whether invalidly incurred or validly incurred but subsequently retrospectively invalidated; and references in this Guarantee to amounts payable by the Borrowers under or in connection with the Loan
      Agreement shall include references to any amount which would have so been or become payable as aforesaid.

  
    
      	18.2	
              Invalidity of Finance Documents

            

    

  

  Clause 18.1 also applies to each of the other Finance Documents to which the Borrowers (or any of them)
      are a party.

  
    
      	19	
              GOVERNING LAW AND JURISDICTION

            

    

  

  
    
      	19.1	
              English law

            

    

  

  This Guarantee and any non-contractual obligations arising out of or in connection with it shall be
      governed by, and construed in accordance with, English law.

  
    19

    
      

  

  

  

  
    
      	19.2	
              Exclusive English jurisdiction

            

    

  

  Subject to Clause 19.3, the courts of England shall have exclusive jurisdiction to settle any Dispute.

  
    
      	19.3	
              Choice of forum for the exclusive benefit of the Security
                    Trustee

            

    

  

  Clause 19.2 is for the exclusive benefit of the Security Trustee, which reserves the rights:

  
    
      	(a)	
              to commence proceedings in relation to any Dispute in the courts of any country
                    other than England and which have or claim jurisdiction to that Dispute; and

            

    

  

  
    
      	(b)	
              to commence such proceedings in the courts of any such country or countries
                    concurrently with or in addition to proceedings in England or without commencing proceedings in England.

            

    

  

  The Corporate Guarantor shall not commence any proceedings in any country other than England in
      relation to a Dispute.

  
    
      	19.4	
              Process agent

            

    

  

  The Corporate Guarantor irrevocably appoints Ince Process Agents Ltd its registered office for the time
      being, presently at Aldgate Tower, 2 Leman Street, London El 8QW, England to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with a Dispute.

  
    
      	19.5	
              Creditor Parties' rights unaffected

            

    

  

  Nothing in this Clause 19 shall exclude or limit any right which any Creditor Party may have (whether
      under the law of any country, an international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction.

  
    
      	19.6	
              Meaning of "proceedings"

            

    

  

  In this Clause 19, "proceedings" means proceedings of any kind, including an application for a provisional or protective measure and a "Dispute"

      means any dispute arising out of or in connection with this Guarantee (including a dispute relating to the existence, validity or termination of this Guarantee) or any non-contractual obligation arising out of or in connection with this
      Guarantee.

  This Guarantee has been entered into on the date stated at the beginning of this Guarantee.

  
    20

    
      

  

  

  

  EXECUTION PAGE

  	
          CORPORATE GUARANTOR

        	 	 	 
	 	 	 	 
	
          Signed by Savvas Tournis

        	
          )

        	
          /s/Savvas Tournis

        	 
	
          for and on behalf of

        	
          )

        	 	 
	
          DRYSHIPS INC.

        	
          )

        	 	 
	
          in the presence of:

        	
          )

        	 	 
	
          ILIAS VASSILIOS TSIGOS

        	 	
          /s/Ilias Vassilios Tsigos

        	 
	
          Attorney-at-Law

          Watson Farley & Williams

          348 Syngrou Avenue

          Athens Greece

        	 	 	 

  

  

  	
          SECURITY TRUSTEE

        	 	 	 
	 	 	 	 
	
          Signed by Dimitris Karamacheras

        	
          )

        	
          /s/Dimitris Karamacheras

        	 
	
          for and on behalf of

        	
          )

        	 	 
	
          CRESDIT SUISSE AG

        	
          )

        	 	 
	
          in the presence of:

        	
          )

        	 	 
	
          ILIAS VASSILIOS TSIGOS

        	 	
          /s/Ilias Vassilios Tsigos

        	 
	
          Attorney-at-Law

          Watson Farley & Williams

          348 Syngrou Avenue

          176 74 Kallithea

            

          Athens Greece

        	 	 	 

  

  

  
    21

    
      

  

  

  

  SCHEDULE 1

  FORM OF COMPLIANCE CERTIFICATE

  	
          To:

        	
          Credit Suisse AG as Security Trustee

        	 
	 	 	 
	
          From:

        	
          Dryships Inc.

              Trust Company Complex

              Ajeltake Road

              Ajeltake Island

              Majuro, Marshall Islands MH96960

        	 

  

  

  Dated: [•]

  Dear Sirs

  Tortuga Owners Inc.,
        Cecilia Owning Company Limited, Faros Owners Inc. and Regina Owners Inc. - $90,000,000 Loan Agreement dated[•] January 2018 (the "Agreement")
        and Guarantee dated[•] January 2018 (the "Guarantee")

  
    
      	1	
              We refer to the Agreement and the Guarantee. This is a Compliance Certificate. Terms defined in the Agreement and the Guarantee have the same meaning when used
                  in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

            

    

  

  
    
      	2	
              We confirm that:

            

    

  

  
    
      	(a)	
              as at the [6-month][12-month] period ending on [•]to which the financial statements
                    referred to below were prepared, the Corporate Guarantor is in compliance with the following covenants under Clause 11.16 (financial

                    covenants):

            

    

  

  
    
      	

            	(i)	
              the Working Capital is [•];

            

    

  

  
    
      	

            	(ii)	
              the Cash and Cash Equivalents are$[•];

            

    

  

  
    
      	

            	(iii)	
              the ratio of Total Net Liabilities to Net Market Value Adjusted Total Assets is[•];

            

    

  

  
    
      	

            	(iv)	
              the Market Value Adjusted Net Worth is [•];

            

    

  

  
    
      	

            	(v)	
              To evidence such compliance, we attach a copy of the latest semi-annual consolidated financial statements of the Group together with calculations and evidence
                  setting out in reasonable detail the data and calculations made above (including valuations in a form acceptable to the Agent evidencing the Market Value of each Fleet Vessel which were used to calculate the Market Value Adjusted Total
                  Assets of the Group as at[•]).

            

    

  

  
    22

    
      

  

  

  

  
    
      	3	
              We confirm that no Default is continuing.*

            

    

  

  Signed: _________________________

      [Chief Financial Officer][Authorised Officer][Authorised person]

      of

      DRYSHIPS INC.

  *If this statement cannot be made, the Compliance Certificate should identify any Default that is continuing and the steps, if any, being taken to
      remedy it.

  23Exhibit 4.110

            
	
              1.     Date of Agreement

            	 
	
              

                19th November 2018

              Vessel's Name:  MV XANADU

            	
              THE BALTCIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) STANDARD SHIP MANAGEMENT AGREEMENT
                  CODE NAME:  "SHIPMAN 98"

              Part I

            
	
              2.     Owners (name, place of registered office
                  and law of registry) (Cl. 1)

            	
              3.     Managers (name, place of registered office
                  and law of registry) (Cl. 1)

            
	 	 	 	 
	 	
              Name

            	 	
              Name

            
	 	
              SALACIA MARINE INC.

            	 	
              TMS DRY LTD.

            
	 	
              Place of registered office

            	 	
              Place of registered office

            
	 	
              Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,

                  Marshall Islands, MH96960

            	 	
              Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,

                  Marshall Islands, MH96960

            
	 	
              Law of registry

            	 	
              Law of registry

            
	 	
              Republic of Marshall Islands

            	 	
              Republic of Marshall Islands

            
	
              4.     Day and year of commencement of Agreement
                  (Cl. 2)

            	 	 
	 	
              DATE OF DELIVERY OF THE VESSEL UNDER THE BAREBOAT CHARTER BETWEEN SALACIA MARINE INC. AND

                  HARPINA OWNING COMPANY LIMITED

            
	
              5.     Crew Management (state "yes or no" as
                  agreed) (Cl. 3.1)

            	
              6.     Technical Management (state "yes" or "no"
                  as agreed) (Cl. 3.2)

            
	 	
              YES

            	 	
              YES

            
	 	 	 	 
	
              7.     Commercial Management (state "yes or no"
                  as agreed) (Cl. 3.3)

            	
              8.     Insurance Arrangements (state "yes or "no"
                  as agreed) (Cl. 3.4)

            
	 	
              YES

            	 	
              YES

            
	 	 
	
              9.     Accounting Services (state "yes" or "no"
                  as agreed) (Cl. 3.5)

            	
              10.   Sale of purchase of the Vessel (state "yes"
                  or "no" as agreed) (Cl. 3.6)

            
	 	
              YES

            	 	
              YES

            
	 	 
	
              11.   Provisions (state "yes" or "no" as agreed)
                  (Cl. 3.7)

            	
              12.   Bunkering (state "yes" or "no" as agreed) (Cl. 3.8)

            
	 	
              YES

            	 	
              YES

            
	 	 
	
              13.   Chartering Service Period (only to be filed
                  in if "yes" stated in Box 7) (Cl. 3.3(i))

            	
              14.   Owners' Insurance (state alternative (i),

                  (ii) or (iii) of Cl. 6.3)

            
	 	
              Ten Years from date indicated ln Box 4

            	 	
              6.3(ii)

            
	 	 
	
              15.   Annual Management Fee (state annual amount)
                  (Cl. 8.1)

            	
              16.   Severance Costs (state alternative (i), (ii) or (iii) of Cl. 8.4(ii))

            
	 	
              As per Agreement dated 9th December 2016 as amended
                  and supplemented by a supplemental agreement dated 31st May 2018 between inter alia the Managers and Dryships Inc.

            	 	
              As per applicable Collective Bargaining Agreement (CBA)

            
	 	 
	
              17.   Day and year of termination of Agreement (Cl. 17)

            	
              18.   Law

                  and Arbitration (state alternative 19.1, 19.2 or 19.3; if 19.3 place of arbitration must be stated) (Cl. 19)

            
	 	
              Ten Years from date indicated in Box 4

            	 	
              19.1

            
	 	 
	
              19.   Notices

                  (state postal and cable address and telefax number for servicing notice and communication to the Owners) (Cl. 20)

            	
              20.   Notice

                  (state postal and cable address and telefax number for servicing notice and communication to the Managers) (Cl. 20)

            
	 	
              c/o CEFAI & ASSOCIATES

                  5/2 Merchants Street, Valletta, Malta,

                  Tel:          (+356) 21222097

                  Fax:         (+356) 21249950

                  Email:      info@cefaladvocates.com

            	 	
              TMS DRY LTD. Athens Shipmanagement Office

                  11 Fragkokklisias Street, 151 25Marousi, Greece

                  Tel:           +30 210 3440600

                  Fax:          +30 210 3440655

                  Email:      management@tms-dry.com

            
	 	 	 	 

      

      

      
        	 
	
                This document Is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be
                    clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss,
                    damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

              
	 

      

      

      

      
        
          

      

      
        

        

        	
                It is mutually agreed between the party stated in Box 2 and
                  the party stated in Box 3 that this Agreement consisting of PART I
                  and PART II as well as Annexes "A" (Details of Vessel), "B" (Details of Crew), “C” ("Budget") and "D" (Associated vessels) attached hereto, shall be performed subject to the conditions contained herein.  In the event of a conflict of conditions, the provisions of PART I and Annexes "A" &. "B", "C" and "D" shall
                  prevail over those of PART II to the extent of such conflict but no further..

                 

                

              
	 	 
	
                Signature(s) (Owners)

                Adriano Cefai, Director of MARE SERVICES LIMITED

                    Sole Director of SALACIA MARINE INC.

              	
                Signature(s) (Managers)

                Adriano Cefai, Director of MARE SERVICES LIMITED

                    Sole Director of TMS DRY LTD.

                     

              

        

        

        

        

        	 	
                /s/ Adriano Cefai

              	 	
                /s/ Adriano Cefai

              	 	 
	 	
                DR. ADRIANO CEFAI

                    DIRECTOR

                MARE SERVICES LTD

                5/1 MERCHANTS STREET

                VALLETTA 1171

              	 	
                DR. ADRIANO CEFAI

                    DIRECTOR

                MARE SERVICES LTD

                5/1 MERCHANTS STREET

                VALLETTA 1171

              	 	 

      

      

      

      

      

      

      

      

      

      

      

      
        

        

        
          	
                  This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must
                      be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any
                      loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                

          

          

          
            
              

          

          
            
              ANNEX "A" (DETAILS OF VESSEL OR VESSELS) TO

                THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

                STANDARD SHIP MANAGEMENT AGREEMENT- CODE NAME:  "SHIPMAN 98"

              

              

            

            

            

            	
                    Date of Agreement:

                  	 	 
	
                    Name of Vessel(s): M/V

                  	
                    XANADU

                  	 
	
                    Particulars of Vessel(s):

                  	
                    Call Sing

                        IMO No.

                        Flag

                        Built

                        SDWT

                        Grt

                        Nrt

                  	
                    - 9HA4370

                        - 9724661

                        - MALTA

                        - 15/02/2017

                        - 208,827 MT

                        - 107,366

                        - 67,552

                  
	 	 	 
	 	 	 

            

            

            

            

            
              
                

            

            
              ANNEX "B" (DETAILS OF CREW) TO

                  THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

                  STANDARD SHIP MANAGEMENT AGREEMENT- CODE NAME:  "SHIPMAN 98"

              

              

            

            

            

            	
                    Date of Agreement:

                  	 	 
	
                    Details of Crew:

                        N/A

                  	 	 
	 	 	 
	
                    Numbers

                  	
                    Rank

                  	
                    Nationality

                  
	 	 	 

            

            

            

            

            

            	 
	
                    This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must
                        be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any
                        loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                  
	 

            

            

            
              
                

            

            
              ANNEX "C" (BUDGET) TO

                  THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

                  STANDARD SHIP MANAGEMENT AGREEMENT- CODE NAME:  "SHIPMAN 98"

              

              

            

            

            

            See Box 15 and Clause 9

            

            

            Managers’ Budget  for the first year with effect from  the Commencement Date of this Agreement:

            

            

            

            

            M/V XANADU

            

            

            	
                    ITEMS

                  	
                    YEARLY (USD) 15/ll-31/l2(47d)

                  	
                    MONTHLY (USD)

                  
	
                    1 TOTAL CREW EXPENSES

                  	
                    126,007

                  	
                    81,547

                  
	
                    2 STORES

                  	
                    15,463

                  	
                    10,007

                  
	
                    3 SPARES

                  	
                    26,085

                  	
                    16,881

                  
	
                    4 REPAIR/ MAINTENANCE/ SURVEY

                  	
                    5,828

                  	
                    3,772

                  
	
                    5 LUBRICANTS

                  	
                    18,001

                  	
                    11,650

                  
	
                    6 SUPT. TRAVEL / COMM. I MISC.

                  	
                    14,476

                  	
                    9,368

                  
	
                    7 INSURANCE (H+M, P+I, WAR, LOH)

                  	
                    24,581

                  	
                    15,908

                  
	
                    GRAND TOTAL OPERATING COST

                  	
                    230,441

                  	
                    149,133

                  
	
                    DAILY AVERAGE (EXCL, DOCKING COST)

                  	
                    4,903

                  	 
	
                    PRE-DELIVERY COST

                  	 	 

            

            

            

            

            NOTE:

            

            

            	
                    1.

                  	
                    Prices basis at average of Singapore, Continent & China, otherwise, to be charged at actual

                  
	
                    2.

                  	
                    Crew change basis Asia, Australia and Continent ports, otherwise, to be adjusted

                  
	
                    3.

                  	
                    Spares costs are for routine maintenance (excluding major items)

                  
	
                    4.

                  	
                    Parity Euro / USD at 1,195

                  
	
                    5.

                  	
                    The budget for Superintendent expenses is based on 5 visits per year of 4 days per each visit, i.e. 20 Superintendent days.  Any
                        additional attendance will be charged extra by the day at a standard rate of Euro 500 per day

                  
	 	 

            

            

            

            

            

            

            
              
                

            

            
              ANNEX "D" (ASSOCIATED VESSELS) TO

                  THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

                  STANDARD SHIP MANAGEMENT AGREEMENT- CODE NAME:  "SHIPMAN 98"

              

              

            

            

            

            NOTE:  PARTIES SHOULD BE AWARE THAT BY COMPLETING THIS ANNEX "D"

                THEY WILL BE SUBJECT TO THE PROVISIONS OF SUB-CLAUSE 18.1(i) OF THIS

                AGREEMENT.

            

            

            

            

            	
                    Date of Agreement:

                  	 	 
	
                    Details of Associated Vessels

                  	 	 
	 	 	 

            

            

            

            

              

              

            

            	 
	
                    This document Is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must
                        be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any
                        loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                  
	 

          

          

          

          

          

          
            
              

          

          
            PART II

            "Shipman 98" Standard Ship Management Agreement

            

            

            
              	
                      1.   Definitions

                      In this Agreement save where the context otherwise requires, 

                        

                      the following words and expressions shall have the meanings

                      hereby assigned to them.

                    	
                       for the duties for which they are engaged and are in possession

                       of valid medical certificates issued in accordance with

                       appropriate flag State requirements.  In the absence of

                       applicable flag State requirements the medical certificate shall

                       be dated not more than three months prior to the respective

                    
	
                      "Owners" mean the party identified in Box. 2.

                      "Managers" mean the party identified in Box 3.

                      "Vessel" means the vessel or vessels details of which are set

                      out in Annex "A" attached hereto.

                      "Crew" mans the Master, officers and ratings of the numbers,

                      rank and nationality specified in Annex “B” hereto.

                      "Crew Support Costs" means all expenses of a general nature

                      which are not particularly referable to any individual vessel for

                      the time being managed by the Managers and which are incurred

                      by the Managers for the purpose of providing an efficient and

                      economic management service and, without prejudice to the

                      generality of the foregoing, shall include the cost of crew standby

                      pay, training schemes for officers and ratings, cadet training

                      schemes, sick pay, recruitment and interviews.

                      "Severance Costs" means the costs which the employers are

                      legally obliged to pay to or in respect of the Crew as a result of

                      the early termination of any employment contract for service on

                      the Vessel.

                      "Crew Insurances" means insurances against crew risks which

                      shall include but not be limited to death, sickness, repatriation,

                      injury, shipwreck unemployment indemnity and loss of personal

                      effects.

                      "Management Services" means the services specified in sub-

                      clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12.

                      "ISM Code" means the International Management Code for the

                      Safe Operation of Ships and for Pollution Prevention as adopted

                      by the International Maritime Organization (IMO) by resolution

                      A.741(18) or any subsequent amendment thereto.

                      "STCW 95" means the International Convention on Standards

                      of Training, Certification and Watchkeeping for Seafarers, 1978,

                      as amended in 1995 or any subsequent amendment thereto.

                       

                      2.   Appointment of Mangers

                      With effect from the day and year stated in Box 4 and continuing

                      unless and until terminated as provided herein, the Owners

                      hereby appoint the Managers and the Managers hereby agree

                      to act as the Managers of the Vessel.

                       

                      3.   Basis of Agreement

                      Subject to terms and conditions herein provided, during the

                      period of this Agreement, the Managers shall carry out

                      Management Services in respect of the Vessel as agents for

                      and on behalf of the Owners.  The Managers shall have authority

                      to take such actions as they may from time to time in their absolute

                      discretion consider to be necessary to enable them to perform

                      this Agreement in accordance with sound ship management

                      practice.

                       

                      3.1. Crew Management

                      (only
                            applicable if agreed according to Box 5)

                      The Managers shall provide suitably qualified Crew for the Vessel

                      as required by the Owners in accordance with the STCW 95

                      requirements, provision of which includes but it is not limited to

                      the following functions:

                      (i)    selecting and engaging the Vessel's Crew, including payroll

                       arrangements, pension administration, and insurances for

                       the Crew other than those mentioned in Clause 6;

                      (ii)   ensuring that the applicable requirements of the law of the

                       flag of the Vessel are satisfied in respect of manning levels,

                       rank, qualification and certification of the Crew and

                       employment regulations including Crew's tax, social

                       insurance, discipline and other requirements;

                      (iii)  ensuring that all members of the Crew have passed a medical

                       examination with a qualified doctor certifying that they are fit

                    	
                       Crew members leaving their country of domicile and

                       maintained for the duration of their service on board the Vessel;

                      (iv)  ensuring that the Crew shall have a command of the English

                       language of a sufficient standard to enable them to perform

                       their duties safely;

                      (v)    arranging transportation of the Crew, including repatriation;

                      (vi)   training the Crew and supervising their efficiency;

                      (vii)  conducting union negotiations;

                      (viii) operating the Managers' drug and alcohol policy unless

                        otherwise agreed.

                       

                      3.2   Technical Management

                      (only applicable if agreed according to Box 6)

                      The Managers sl1all provide technical management which

                      includes, but is not limited to, the following functions:

                      (i)   provision of competent personnel to supervise the

                      maintenance and general efficiency of the Vessel;

                      (ii)  arrangement and supervision of dry dockings, repairs,

                      alterations and the upkeep of the Vessel to the standards

                      required by the Owners provided that the Managers shall

                      be entitled to incur the necessary expenditure to ensure

                      that the Vessel will comply with the law of the flag of the

                      Vessel and of the places where she trades, and all

                      requirements and recommendations of the classification

                      society;

                      (iii)  arrangement of the supply of necessary stores, spares and

                       lubricating oil;

                      (iv)  appointment of surveyors and technical consultants as the

                       Managers may consider from time to time to be necessary;

                      (v)   development, implementation and maintenance of a Safety

                       Management System (SMS) in accordance with the ISM

                       Code (see sub-clauses 4.2
                          and 5.3).

                      (vi)  supervision of vessels under construction at the specific

                       request of the Owners and after approval by the Owner of

                       the relevant budget submitted by the Managers.

                       

                      3.3   Commercial Management

                      (only applicable if agreed according to Box 7)

                      The Managers shall provide the commercial operation of the

                      Vessel, as required by the Owners, which includes, but is not

                      limited to, the following functions:

                      (i)   providing chartering services in accordance with the Owners'

                      instructions which include, but are not limited to, seeking

                      and negotiating employment for the Vessel and the conclusion

                      (including the execution thereof) of charter parties or other

                      contracts relating to the employment of the Vessel.  If such a

                      contract exceeds the period stated in Box 13, consent thereto

                      in writing shall first be obtained from the Owners.

                      (ii)   arranging of the proper payment to Owners or their nominees

                      of all hire and/or freight revenues or other moneys of

                      whatsoever nature to which Owners may be entitled arising

                      out of the employment of or otherwise in connection with the

                      Vessel.

                      (iii) providing voyage estimates and accounts and calculating of

                      hire, freights, demurrage and/or despatch moneys due from

                      or due to the charterers of the Vessel;

                      (iv)  issuing of voyage instructions;

                      (v)   appointing agents;

                      (vi)  appointing stevedores;

                      (vii) arranging surveys associated with the commercial operation

                       of the Vessel.

                      
                         

                        3.4 Insurance Arrangements’

                      (only applicable if agreed according to Box 8)

                      The Managers shall arrange insurances in accordance with

                    

            

          

          
            
              

              

              
                	
                        This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form
                            must be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no
                            responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                      

                
                  

                  

                  
                    
                      

                  

                  PART II

                  
                    "Shipman 98" Standard Ship Management Agreement

                    

                      	
                              Clause 6, on such terms and conditions as the Owners shall

                              have instructed or agreed, in particular regarding conditions,

                              insured values, deductibles and franchises.

                              
                                 

                                3.5   Accounting Services

                              (only applicable if agreed according to Box 9)

                              The Managers shall:

                              (i)   establish an accounting system which meets the reasonable

                                     requirements of the Owners and provide regular accounting

                                     services, supply regular reports and records.

                              (ii)  maintain the records of all costs and expenditure incurred

                                     as well as data necessary or proper for the settlement of

                                     accounts between the parties.

                              
                                 

                                3.6   Sale or Purchase of the Vessel

                              (only applicable if agreed according to Box 10)

                              The Managers shall, in accordance with the Owners’ instructions,

                              supervise the sale or purchase of the Vessel, including the

                              performance of any sale or purchase agreement, but not

                              negotiation of the same.

                              
                                 

                                3.7   Provisions (only applicable if agreed
                                    according to Box 11)

                              The Managers shall arrange for the supply of provisions.

                              
                                 

                                3.8   Bunkering (only applicable if agreed
                                    according to Box 12)

                              The Managers shall arrange for the provision of bunker fuel of the

                              quality specified by the Owners as required for the Vessel’s trade.

                               

                              4.   Managers’ Obligations

                              4.1   The Managers undertake to use their best endeavours

                              endeavour
                                  to

                              provide the agreed Management Services as agents for and on

                              behalf of the Owners in accordance with sound ship management

                              practice and to protect and promote the interests of the Owners in

                              all matters relating to the provision of services hereunder.

                              Provided, however, that the Managers in the performance of their

                              management responsibilities under this Agreement shall be entitled

                              to have regard to their overall responsibility in relation to all vessels

                              as may from time to time be entrusted to their management and

                              in particular, but without prejudice to the generality of the foregoing,

                              the Managers shall be entitled to allocate available supplies,

                              manpower and services in such manner as in the prevailing

                              circumstances the Managers in their absolute discretion consider

                              to be fair and reasonable.

                              4.2   Where the Managers are providing Technical Management

                              in accordance with sub-clause 3.2, they shall procure that the

                              requirements of the law of the flag of the Vessel are satisfied and

                              they shall in particular be deemed to be the “Company” as defined

                              by the ISM Code, assuming the responsibility for the operation of

                              the Vessel and taking over the duties and responsibilities imposed

                              by the ISM Code when applicable.

                               

                              5.   Owners’ Obligations

                              5.1   The Owners shall pay all sums due to the Managers punctually

                              in accordance with the terms of this Agreement.

                              5.2   Where the Managers are providing Technical Management

                              in accordance with sub-clause 3.2, the Owners shall:

                              (i)   procure that all officers and ratings supplied by them or on 

                                     their behalf comply with the requirements of STCW 95;

                              (ii)  instruct such officers and ratings to obey all reasonable orders 

                                     of the Managers in connection with the operation of the 

                                     Managers’ safety management system.

                              5.3   Where the Managers are not providing Technical Management

                              in accordance with sub-clause 3.2, the Owners shall procure that

                              the requirements of the law of the flag of the Vessel are satisfied

                              and that they, or such other entity as may be appointed by them

                              and identified to the Managers, shall be deemed to be the

                              “Company” as defined by the ISM Code assuming the responsibility

                              for the operation of the Vessel and taking over the duties and

                            	
                              responsibilities imposed by the ISM Code when applicable.

                               

                              6.   Insurance Policies

                              The Owners shall procure, whether by instructing the Managers

                              under sub-clause 3.4
                                  or otherwise, that throughout the period of this Agreement:

                              6.1   at the Owners’ expense, the Vessel is insured for not less

                              than her sound market value or entered for her full gross tonnage,

                              as the case may be for:

                              (i)     usual hull and machinery marine risks (including crew

                                       negligence) and excess liabilities;

                              (ii)    protection and indemnity risks (including pollution risks and

                                       Crew Insurances); and

                              (iii)   war risks (including protection and indemnity and crew risks)

                                       in accordance with the best practice of prudent owners of

                                       vessels of a similar type to the Vessel, with first class insurance

                                       companies underwriters or associations; (“the Owners’

                                       Insurances”);

                              (vi)   Freight, Demurrage and Defense Insurance

                              (v)    Certificate of Financial Responsibility

                              (vi)   Crew Personal Accident and Sundries insurance cover

                              (vii)  Any other insurance required by law

                              (viii) Any Insurance that can be arranged and not Included in the

                                       above but is requested by the Owners in writing

                              6.2   all premiums deductibles, supplementary calls and/or excess 

                              supplementary calls and release calls on the Owners' insurances

                              are paid

                              promptly by their due date.

                              6.3   the Owners’ Insurances name the Managers and, subject

                              to underwriters’ agreement, any third party designated by the

                              Managers as a joint assured, with full cover, with the Owners

                              obtaining cover in respect of each of the insurances specified in

                              sub-clause 6.1:

                              (i) 

                                        on terms whereby the Managers and any such third party

                                  

                                         are liable in respect of premiums or calls arising in connection

                                     

                                      with the Owners’ Insurances; or

                              (ii)   if reasonably obtainable, on terms such that neither the

                                      Managers nor any such third party shall be under any

                                      liability in respect of premiums or calls arising in connection

                                      with the Owners’ Insurances; or

                              (iii)  on such other terms as may be agreed in writing.

                              Indicate alternative (i), (ii) or (iii) in Box 14.  If Box 14 is left

                              blank then (i) applies.

                              6.4   written evidence is provided, to the reasonable satisfaction

                              of the Managers, of their compliance with their obligations under

                              Clause 6
                                  within a reasonable time of the commencement of

                              the Agreement, and of each renewal date and, if specifically

                              requested, of each payment date of the Owners’ Insurances.

                               

                              7.   Income Collected and Expenses Paid on Behalf of
                                  Owners

                              7.1   All moneys collected by the Managers under the terms of

                              this Agreement (other than moneys payable by the Owners to

                              the Managers) and any interest thereon shall be held to the

                              credit of the Owners in a separate bank account.

                              7.2   All expenses incurred by the Managers under the terms

                              of this Agreement on behalf of the Owners (including expenses

                              as provided in Clause

                                      8) may be debited against the Owners

                              in the

                                  account referred to under sub-clause 7.1 but shall in any

                              event remain payable by the Owners to the Managers on

                              demand.

                               

                              8.   Management Fee

                              8.1(a)   The Owners shall pay to the Managers for their services

                              as Managers under this Agreement an annual a daily management

                              fee as stated in Box

                                      15 which shall be payable to equal

                              monthly installments in advance, the first installment being

                              payable on the commencement of this Agreement (see Clause 

                              2 and
                                  Box 4) and subsequent installments being payable every

                              month.

                            

                    

                    

                      
                        	
                                This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to
                                    the form must be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes
                                    no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                              

                        
                          
                            
                              
                                
                                  

                                  

                                  
                                    
                                      
                                        

                                    

                                    
                                      
                                        PART II

                                        "Shipman 98" Standard Ship Management Agreement

                                      

                                    

                                  

                                

                              

                              
                                

                                

                                
                                  	
                                          8.1(b)   The Owners shall place with the Manager for the duration

                                          of this Agreement an amount equal to three months of

                                          management fee stated in Box 15 as security.

                                           

                                          Upon termination of this Agreement, all moneys remaining

                                          within the security or any portion thereof, if the amounts due to

                                          the Manager pursuant with the obligations set forth in the

                                          management agreement and their addenda (if any) is less than

                                          the security amount paid as per above shall be returned to the

                                          Owner subject to the terms and conditions of this agreement.  It

                                          is being understood that in event of default from the part of the

                                          Owner is forfeited in favor of the Manager without prejudice to

                                          any rights which the Manager may have against the Owner in

                                          law or in equity.

                                          8.2   The management fee shall be to an annual a review

                                          on

                                                  the anniversary date of the Agreement and for each calendar

                                          year and will be automatically adjusted to the Greek CPI index

                                          for the previous year.  It is understood that any such increase

                                          will not be less than 3% and not more than 5%.  The proposed

                                          fee shall be presented in the annual budget referred to in sub-

                                          clause

                                                    9.1 clause 9.1

                                          8.3   The Managers shall, at no extra cost to the Owners, provide

                                          their own office accommodation, office staff, facilities and

                                          stationery.  Without limited the generality of Clause 7 the Owners

                                          shall reimburse the Managers for postage and communication

                                          expenses, traveling expenses, and other out of pocket

                                          expenses properly incurred by the Managers in pursuance of

                                          the Management Services.

                                          8.4   In the event of the appointment of the Managers being

                                          terminated for any reason other than Clause 18.2 by the Owners

                                          or

                                                  the Managers in accordance with

                                          the

                                                  provisions of Clauses 17 and 18 other than by reason of

                                          default

                                                  by the Managers, or if the Vessel is lost, sold or otherwise

                                          disposed

                                                  of, the “management fee” shall be payable to the

                                          Managers

                                          according

                                                  to the provisions of sub-clause 8.1, shall continue to 

                                          be

                                                  payable for a further period of three calendar months as

                                          from the termination date.  In addition, provided that the

                                          Managers provide Crew for the Vessel in accordance with sub-

                                          clause 3.1;

                                          (i)  the Owners shall continue to pay Crew Support Costs during

                                                the said further period of three (3) calendar months and

                                          (ii) the Owners shall pay an equitable proportion of any

                                                Severance Costs which may materialize, not exceeding

                                                the amount stated in Box 16.

                                          8.5   If the Owners decide to lay-up the Vessel whilst this

                                          Agreement remains in force and such lay-up lasts for more

                                          than three months, an appropriate reduction of the management

                                          fee for the period exceeding three months until one month

                                          before the Vessel is again put into service shall be mutually

                                          agreed between the parties.

                                          8.6   Unless otherwise agreed in writing all discounts and

                                          commissions obtained by the Managers in the course of the

                                          management of the Vessel shall be credited to the Owners.  For the

                                          avoidance of any doubt, it is understood that insurance is

                                          charged on a gross rate basis.

                                          8.7   In case of vessels under construction, no management fee

                                          will be charged by the Managers until the vessel's delivery to

                                          the Owners.  However, in case Owners instruct the Managers to

                                          supervise vessels under construction as per Clause 3.2(vi) then

                                          the Managers will be due an upfront fee equal to 10% of the

                                          budget approved by the Owners.  Such fee, will be payable in

                                          USD.  For the avoidance of any doubt the rest of the paragraphs

                                          of Clause 8 to remain in force.

                                           

                                          9.   Budgets and Management of Funds

                                          9.1   On or before November 30 of each calendar year The

                                          Managers shall present to the Owners annually a

                                          budget (see Annex “C”) for the following twelve months next

                                          calendar year in such form as the

                                          Owners reasonably require.  The budget for the first year hereof is

                                          set

                                                  out

                                          in

                                                  Annex “C” hereto.  Subsequent annual budgets shall be 

                                          prepared

                                                  by the Managers and submitted to the Owners not

                                        	
                                          less

                                                  than three months before the anniversary date of 

                                          the

                                                  commencement of this Agreement (see Clause 2 and Box 4).

                                          9.2   The Owners shall indicate to the Managers their acceptance

                                          and approval of the annual budget within one month of

                                          presentation and in the absence of any such indication the

                                          Managers shall be entitled to assume that the Owners have

                                          accepted the proposed budget.

                                          9.3   The Owner shall place with the Manager for the duration of

                                          this Agreement an amount equal to three months running

                                          expenses as working capital reserve.  For calculation purposes

                                          the reserve will be based on the agreed budgeted daily average

                                          cost as per the respective management agreement.  Upon

                                          termination of this Agreement all moneys remaining within the

                                          working capital reserve shall be returned to the Owner subject

                                          to the terms and conditions of this agreement.  Following the

                                          agreement

                                                  of the budget, the Managers shall

                                          prepare

                                                  and present to the Owners their estimate of the working

                                          capital

                                                  requirement of the Vessel and the Managers shall each

                                          month

                                                  update this estimate, based thereon, the Managers shall

                                          each

                                                  month request the Owners in writing for the funds required

                                          to

                                                  run the Vessel for the ensuing month, including the payment

                                          of

                                                  any occasional or extraordinary item of expenditure, such as

                                          emergency

                                                  repair costs, additional insurance premiums, bunkers

                                          or

                                                  provisions.  Such funds shall be received by the Managers

                                          within

                                                  ten running days after the receipt by the Owners of the

                                          Managers’

                                                  written request and shall be held to the credit of the

                                          Owners

                                                  in a separate bank account.

                                          9.4   The Managers shall produce a comparison between

                                          budgeted and actual income and expenditure of the Vessel in

                                          such form as required by the Owners monthly on a yearly basis or

                                          at such other

                                          intervals as mutually agreed.

                                          9.5   Notwithstanding anything contained herein to the contrary,

                                          the Managers shall in no circumstances be required to use or

                                          commit their own funds to finance the provision of the

                                          Management Services.

                                           

                                          10. Managers’ Right to Sub-Contract

                                          The Managers shall not have the right to sub-contract any of

                                          their obligations hereunder, including those mentioned in sub-

                                          clause 3.1, without the prior written consent of the Owners which

                                          shall

                                                  not be unreasonably withheld.  In the event of such a sub-

                                          contract the Managers shall remain fully liable for the due

                                          performance of their obligations under this Agreement.

                                           

                                          11. Responsibilities

                                          11.1   Force Majeure - Neither the Owners nor the Managers

                                          shall be under any liability for any failure to perform any of their

                                          obligations thereunder by reason of any cause whatsoever of

                                          any nature or kind beyond their reasonable control.  For the

                                          avoidance of any doubt financial force majeure does not apply.

                                          11.2   Liability to Owners – (i) Without prejudice to sub-clause

                                          11.1, the Managers shall be under no liability whatsoever to the

                                          Owners for any loss, damage, delay or expense of whatsoever

                                          nature, whether direct or indirect, (including but not limited to

                                          loss of profit arising out of or in connection with detention of or

                                          delay to the Vessel) and howsoever arising in the course of

                                          performance of the Management Services UNLESS same is

                                          proved to have resulted solely from the negligence, gross

                                          negligence or willful default of the Managers or their employees,

                                          or agents or sub-contractors employed by them in connection

                                          with the Vessel, in which case (save where loss, damage, delay

                                          or expense has resulted from the Managers’ personal act or

                                          omission committed with the intent to cause same or recklessly

                                          and with knowledge that such loss, damage, delay or expense

                                          would probably result) the Managers’ liability for each incident

                                          or series of incidents giving rise to a claim or claims shall never

                                          exceed a total of ten times the annual management fee payable

                                          hereunder.

                                          (i)  Notwithstanding anything that may appear to the contrary in

                                                this Agreement, the Managers shall not be liable for any of
                                              the

                                        

                                

                                

                                
                                  	
                                          This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or
                                              deletion to the form must be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
                                              apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                                        

                                  

                                  

                                

                              

                            

                          

                          
                            
                              

                          

                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          PART II

                                          "Shipman 98" Standard Ship Management Agreement

                                        

                                      

                                    

                                  

                                

                                
                                  

                                  

                                  
                                    	
                                            actions of the Crew, even if such actions are negligent, grossly

                                            negligent or willful, except only to the extent that they are shown

                                            to have resulted from a failure by the Managers to discharge

                                            their obligations under sub-clause 3.1, in which case their liability

                                            shall be limited in accordance with the terms of this Clause 11.

                                            11.3   Indemnity – Except to the extent and solely for the amount

                                            therein set out that the Managers would be liable under sub-

                                            clause 11.2, the Owners hereby undertake to keep the Managers

                                            and their employees, agents and sub-contractors indemnified

                                            and to hold them harmless against all actions, proceedings,

                                            claims, demands or liabilities whatsoever or howsoever arising

                                            which may be brought against them or incurred or suffered by

                                            them arising out of or in connection with the performance of the

                                            Agreement, and against and in respect of all costs, losses,

                                            damages and expenses (including legal costs and expenses on

                                            a full indemnity basis) which the Managers may suffer or incur

                                            (either directly or indirectly) in the course of the performance of

                                            this Agreement.

                                            11.4   “Himalaya” - It is hereby expressly agreed that no

                                            employee or agent of the Managers (including every sub-

                                            contractor from time to time employed by the Managers) shall in

                                            any circumstances whatsoever be under any liability whatsoever

                                            to the Owners for any loss, damage or delay of whatsoever kind

                                            arising or resulting directly or indirectly from any act, neglect or

                                            default on his party while acting in the course of or in connection

                                            with his employment and, without prejudice to the generality of

                                            the foregoing provisions in this Clause 11, every exemption,

                                            limitation, condition and liberty herein contained and every right,

                                            exemption from liability, defence and immunity of whatsoever

                                            nature applicable to the Managers or to which the Managers are

                                            entitled hereunder shall also be available and shall extend to

                                            protect every such employee or agent of the Managers acting

                                            as aforesaid and for the purpose of all the foregoing provisions

                                            of this Clause 11 the Managers are or shall be deemed to be

                                            acting as agent or trustee on behalf of and for the benefit of all

                                            persons who are or might be their servants or agents from time

                                            to time (including sub-contractors as aforesaid) and all such

                                            persons shall to this extent be or be deemed to be parties to this

                                            Agreement.

                                             

                                            12.   Documentation

                                            Where the Managers are providing Technical Management in

                                            accordance with sub-clause 3.2 and/or Crew Management in

                                            accordance with sub-clause 3.1, they shall make available,

                                            upon Owners’ request, all documentation and records related

                                            to the Safety Management System (SMS) and/or the Crew

                                            which the Owners need in order to demonstrate compliance

                                            with the ISM Code and STCW 95 or to defend a claim against

                                            a third party.

                                             

                                            13.   General Administration

                                            13.1   The Managers shall handle and settle all claims arising

                                            out of the Management Services hereunder and keep the Owners

                                            informed regarding any incident of which the Managers become

                                            aware which gives or may give rise to claims or disputes involving

                                            third parties.

                                            13.2   The Managers shall, as instructed by the Owners, bring

                                            or defend actions, suits or proceedings in connection with matters

                                            entrusted to the Managers according to this Agreement.

                                            13.3   The Managers shall also have power to obtain legal or

                                            technical or other outside expert advice in relation to the handling

                                            and settlement of claims and disputes or all other matters

                                            affecting the interests of the Owners in respect of the Vessel.

                                            13.4   The Owners shall arrange for the provision of any

                                            necessary guarantee bond or other security.

                                            13.5   Any costs reasonably incurred by the Managers in

                                            carrying out their obligations according to Clause 13 shall

                                            be reimbursed by the Owners.

                                          	
                                            14.   Auditing

                                            The Managers shall at all times maintain and keep true and

                                            correct accounts in accordance with sound accounting practice

                                            and an adequate and effective system of internal controls and

                                            procedures and shall make the same available for permit the

                                            inspection

                                            and auditing by the Owners and their Auditors at such times as

                                            may be mutually

                                            agreed.  On the termination, for whatever reasons, of this

                                            Agreement the Managers shall release to the Owners, if so

                                            requested, the originals when possible, or otherwise certified

                                            copies, of all such accounts and all documents specifically relating

                                            to the Vessel and her operation.

                                             

                                            15.   Inspection of Vessel

                                            The Owners shall have the right at any time after giving

                                            reasonable notice to the Managers to inspect the Vessel for any

                                            reason they consider necessary.

                                             

                                            16.   Compliance with Laws and
                                                Regulations

                                            The Managers will not do or permit to be done anything which

                                            might cause any breach or infringement of the laws and

                                            regulations of the Vessel’s flag, or of the places where she trades.

                                             

                                            17.   Duration of the Agreement

                                            This Agreement shall come into effect on the day and year stated

                                            in Box 4 and shall continue until the date stated in Box 17.

                                            Thereafter it shall automatically renew for a five-year period and

                                            shall thereafter be extended in additional five-year increments if

                                            notice of termination is not provided by the Owners in the fourth

                                            quarter of the year immediately preceding the end of the

                                            respective term.  continue until terminated by either party giving

                                            to

                                                    the other notice in writing, in which event the Agreement shall

                                            terminate

                                                    upon the expiration of a period of two months from the

                                            date

                                                    upon which such notice was given.

                                             

                                            18.   Termination

                                            18.1   Owners’ default

                                            (i)    The Managers shall be entitled to terminate the
                                                Agreement

                                                    with immediate effect by notice in writing if any
                                                moneys

                                                    payable by the Owners under this Agreement and/or the

                                                    owners of any associated vessel, details of which are
                                                listed

                                                    in Annex “D”, shall not have been received in the Managers’

                                                    nominated account within ten running days of receipt by

                                                    the Owners of the Managers written request or if the
                                                Vessel

                                                    is repossessed by the Mortgagees.

                                            (ii)   If the Owners:

                                            (a)   fail to meet their obligations under sub-clauses 5.2

                                            and 5.3 of this Agreement for any reason within their

                                            control, or

                                            (b)   proceed with the employment of or continue to employ

                                            the Vessel in the carriage of contraband, blockade

                                            running, or in an unlawful trade, or on a voyage which

                                            in the reasonable opinion of the Managers is unduly

                                            hazardous or improper,

                                            the Managers may give notice of the default to the Owners,

                                            requiring them to remedy it as soon as practically possible.

                                            In the event that the Owners fail to remedy it within a

                                            reasonable time to the satisfaction of the Managers, the

                                            Managers shall be entitled to terminate the Agreement

                                            with immediate effect by notice in writing.

                                            18.2   Managers’ Default

                                            If the Managers fail to meet their obligations under Clauses 3

                                            and 4 of this Agreement for any reason within the control of the

                                            Managers, the Owners may give notice to the Managers of the

                                            default, requiring them to remedy it as soon as practically

                                            possible.  In the event that the Managers fail to remedy it within a

                                            reasonable time to the satisfaction of the Owners the Owners

                                            shall be entitled to terminate the Agreement with immediate effect

                                            by notice in writing

                                          

                                  

                                  

                                  
                                    	
                                            This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or
                                                deletion to the form must be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document
                                                shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                                          

                                    

                                    

                                  

                                

                              

                            

                            
                              
                                

                            

                            PART II

                        

                        
                          
                            
                              "Shipman 98" Standard Ship Management Agreement

                            

                          

                        

                      

                    

                    
                      

                      

                      
                        	
                                18.3   Extraordinary

                                    Termination

                                This Agreement shall be deemed to be terminated in the case of

                                the sale of the Vessel or if the Vessel becomes a total loss or is

                                declared as a constructive or compromised or arranged total

                                loss or is requisitioned.

                                18.4   For the purpose of sub-clause 18.3 hereof

                                (i)   the date upon which the Vessel is to be treated as having

                                       been sold or otherwise disposed or shall be the date on

                                       which the Owners cease to be registered as Owners of

                                       the Vessel;

                                (ii)  the Vessel shall not be deemed to be lost unless either

                                       she has become an actual total loss or agreement has

                                       been reached with her underwriters in respect of her

                                       constructive, compromised or arranged total loss or if such

                                       agreement with her underwriters is not reached it is

                                       adjudged by a competent tribunal that a constructive loss

                                       of the Vessel has occurred.

                                18.5   This Agreement shall terminate forthwith in the event of

                                an order being made or resolution passed for the winding up,

                                dissolution, liquidation or bankruptcy of either party (otherwise

                                than for the purpose of reconstruction or amalgamation) or if a

                                receiver is appointed, or it if suspends payment, ceases to carry

                                on business or makes any special arrangement or composition

                                with its creditors.

                                18.6   The termination of this Agreement shall be without

                                prejudice to all rights accrued due between the parties prior to

                                the date of termination.

                                18.7   Termination After Change of Control

                                This Agreement will terminate automatically immediately after a

                                change of control (as defined below) of the Owners and/or

                                the Owners ultimate parent.  Upon such termination, the Owners

                                will be required to pay the Manager the Termination Payment in

                                a single Installment.

                                For the purpose of this Agreement "Change of Control" means

                                the occurrence of any of the following:

                                (i)   The acquisition by any individual, entity or group of

                                beneficial ownership of fifty (50) percent (%) or more of either

                                (A)  the then-outstanding shares of stock of the Owner and/or

                                the Owners ultimate parent or (B) the combined voting power of

                                the then-outstanding voting securities of the Owner and/or the

                                Owners ultimate parent entitled to vote generally in the election

                                of directors;

                                (ii)   The consummation of a reorganization, merger or

                                consolidation of Owner and/or the Owners. ultimate parent or

                                the sale or other disposition of all or substantially all of the

                                assets of Owner and/or Owners ultimate parent.

                                (iii)   The approval by the shareholders of Owner and/or the

                                Owners ultimate parent of a complete liquidation or dissolution

                                of Owner and/or the Owners ultimate parent.

                                 

                                Further, for the purpose of this Agreement "Termination

                                Payment" means a payment to be received by the Manager in

                                the event of a Change of Control.  Such payment shall be equal

                                to the estimated remaining fees payable to the Manager under

                                the then current term of the agreement but in any case shall not

                                be less than for a period of 36 months and not more than a

                                period of 48 months.

                                 

                                19.   Law and Arbitration

                                19.1   This Agreement shall be governed by and construed in

                                accordance with English law and any dispute arising out of or

                                in connection with this Agreement shall be referred to arbitration

                                in London in accordance with the Arbitration Act 1996 or

                                any statutory modification to re-enactment thereof save to

                                the extent necessary to give effect to the provisions of this

                                Clause.

                                The arbitration shall be conducted in accordance with the

                                London Maritime Arbitrators Association (LMAA) Terms

                                current at the time when the arbitration proceedings are

                                commenced.

                                The reference shall be to three arbitrators.  A party wishing

                                to refer a dispute to arbitration shall appoint its arbitrator

                                and send notice of such appointment in writing to the other

                              	
                                party requiring the other party to appoint its own arbitrator

                                within 14 calendar days of that notice and stating that it will

                                appoint its arbitrator as sole arbitrator unless the other party

                                appoints its own arbitrator and gives notice that it has done

                                so within the 14 days specified.  If the other party does not

                                appoint its own arbitrator and give notice that it has done so

                                within the 14 days specified, the party referring a dispute to

                                arbitration may, without the requirement of any further prior

                                notice to the other party, appoint its arbitrator as sole

                                arbitrator and shall advise the other party accordingly.  The

                                award of a sole arbitrator shall be binding on both parties

                                as if he had been appointed by agreement.

                                Nothing herein shall prevent the parties agreeing in writing

                                to vary these provisions to provide for the appointment of a

                                sole arbitrator.

                                In cases where neither the claim nor any counterclaim

                                exceeds the sum of USD50,000 (or such other sum as the

                                parties may agree) the arbitration shall be conducted in

                                accordance with the LMAA Small Claims Procedure current

                                at the time when the arbitration proceedings are commenced.

                                19.2   This Agreement shall be governed by and construed

                                in accordance with Title 9 of the United States Code and

                                the Maritime Law of the United States and any dispute

                                arising out of or in connection with this Agreement shall be

                                referred to three persons at New York, one to be appointed

                                by each of the parties hereto, and the third by the two so

                                chosen; their decision that of any two of them shall be

                                final, and for the purposes of enforcing any award,

                                judgment may be entered on an award by any court of

                                competent jurisdiction.  The proceedings shall be conducted

                                in accordance with the rules of the Society of Maritime

                                Arbitrators, Inc.

                                In cases where neither the claim nor any counterclaim

                                exceeds the sum of USD50,000 (or such other sum as the

                                parties may agree) the arbitration shall be conducted in

                                accordance with the Shortened Arbitration Procedure of the

                                Society of Maritime Arbitrators, Inc, current at the time when

                                the arbitration proceedings are commenced.

                                19.3   This Agreement shall be governed by and construed

                                in accordance with the laws of the place mutually agreed by

                                the parties and any dispute arising out of or in connection

                                with this Agreement shall be referred to arbitration at a

                                mutually agreed place, subject to the procedures applicable

                                there.

                                19.4   If Box
                                        18 in Part I is not appropriately filled in, sub-

                                clause 19.1
                                    of this Clause shall apply.

                                 

                                Note:  19.1, 19.2 and 19.3
                                    are alternatives; indicate

                                alternative agreed in Box 18.

                                 

                                20.   Notices

                                20.1   Any notice to be given by either party to the other

                                party shall be in writing and may be sent by fax, telex,

                                registered or recorded mail or by personal service.

                                20.2   The address of the Parties for service of such

                                communication shall be as stated in Boxes 19 and 20,

                                respectively.

                                 

                                21.   Other Fees

                                21.1   Incentive Fee

                                At their sole discretion the Owners on an annual basis in order

                                to provide the Managers with a performance incentive, may

                                make a payment to the Managers of an incentive fee in addition

                                to the management fee,

                                21.2   Chartering

                                One and a quarter per cent (1.25%) of all monies earned by the

                                Vessel.  Such fee will be payable in USD.  For the avoidance of

                                any doubt and regardless of Clause 8.5, chartering commissions

                                shall survive the termination of this agreement under all

                                circumstances until the termination of the charter party in force

                                at the time or termination of any other employment arranged

                              

                      

                      

                      
                        	
                                This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to
                                    the form must be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes
                                    no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

                              

                        

                        

                      

                    

                  

                

                
                  
                    

                

                
                  PART II

                  "Shipman 98" Standard Ship Management Agreement

                  
                    

                    

                    	
                            previous to the termination date.

                            21.3  Sale and Purchase

                                One percent (1%) of any sale of the Vessel including 1% for the

                                construction.  Such fee will be payable in USD.

                          	 

                    

                    

                  

                  

                  

                  

                  

                  

                  	 
	
                          This document Is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the
                              form must be clearly visible.  ln the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no
                              responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

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