Document:

Approved by
	 
	 
	 

	 
	 
	the Documentary Committee of The
	 
	Approved by
	 

	Printed by BIMCO’s idea
	 
	Japan Shipping Exchange Inc., Tokyo
	 
	the International Ship Managers’ Association (InterManager)
	 

 

  	1.
	Date of Agreement
	 
	 
	THE BALTIC 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

          CMA Ship Management

	 
	Place of registered office
	 
	 
	Place of registered office

          4, quai d’Arenc, 13002 Marseille, France

	 
	Law of registry
	 
	 
	Law of registry 

          France

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

          As per delivery under charterparty dated [   ] between [   ] and [   ]
	 
	 

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

          Yes

          

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

          Yes

          

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

          No

          

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

          No

          

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

          Yes

          

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

          No

          

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

          Yes

          

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

No

	13.
	Chartering Services Period (only to be filled in if “yes” stated in Box 7) (Cl. 3.3(i)) 

          N/A

          

	 
	14.
	Owners’ Insurance (state alternative (i), (ii) or (iii) of Cl. 6.3) 

          (ii)

          

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

          USD114,000

          

	 
	16.
	Severance Costs (state maximum amount) (Cl. 8.4(ii))

          Nil

          

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

          Three (3) years from delivery into charter as per Box 4

          

	 
	18.
	Law and Arbitration (state alternative 19.1, 19.2 or 19.3; if 19.3 place of arbitration must be stated) (Cl. 19) 

          Clause 19.1

          

	19.
	Notices (state postal and cable address, telex and telefax number for serving notice and communication to the Owners) (Cl. 20)

        Global Ship Lease

          4th Floor

          Millbank Business Centre, Millbank Tower

          London SW1P 4QP, United Kingdom

          Tel +44 20 7802 5100

          

	 	20.
	Notices (state postal and cable address, telex and telefax number for serving notice and communication to the Managers) (Cl. 20)

        CMA Ship Management

          4, quai d’Arenc

          13002 Marseille,

          Fax +33 4 88 91 84 97 

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 Annex “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 Annex “D” shall prevail over those of PART II to the extent of such conflict but no further..

 

  	Signature(s) (Owners)

          

	 
	Signature(s) (Managers)

          

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. In 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 “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:

Ville d’Orion

Ville d’Aquarius

CMA CGM Matisse

CMA CGM Utrillo

MOL Rainbow

Julie Delmas

Kumasi

Marie Delmas

CMA CGM La Tour

CMA CGM Manet

CMA CGM Alcazar

CMA CGM d’lf

Hull 4,126 

CMA CGM Jamaica 

CMA CGM Sambhar 

CMA CGM America 

CMA CGM Berlioz 

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. In 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
	 
	1

	In this Agreement save where the context otherwise requires,
	 
	2

	the following words and expressions shall have the meanings
	 
	3

	 hereby assigned to them.
	 
	4

	 
	 
	 

	“Owners” means the party identified in Box 2.
	 
	5

	“Managers” means the party identified in Box 3.
	 
	6

	“Vessel” means the vessel [name, IMO, year built] or vessels details
	 
	7

	of which are set
	 
	 

	out in Annex “A ”attached hereto.
	 
	 

	“Crew” means the Master, officers and ratings of the Vessel
	 
	8

	numbers,
	 
	9

	rank and nationality specified in Annex “B ”; attached hereto.
	 
	10

	“Crew Support Costs” means all expenses of a general nature
	 
	11

	which are not particularly referable to any individual vessel for
	 
	12

	the time being managed by the Managers and which are incurred
	 
	13

	by the Managers for the purpose of providing an efficient and
	 
	14

	economic management service and, without prejudice to the
	 
	15

	generality of the foregoing, shall include the cost of crew standby 
	 
	16

	pay, training schemes for officers and ratings, cadet training
	 
	17

	schemes, sick pay, study pay, recruitment and interviews.
	 
	18

	“Severance Costs” means the costs which the employers are
	 
	19

	legally obliged to pay to or in respect of the Crew as a result of
	 
	20

	the early termination of any employment contract for service on
	 
	21

	the Vessel.
	 
	22

	“Crew Insurances” means insurances against crew risks which
	 
	23

	shall include but not be limited to death, sickness, repatriation,
	 
	24

	injury, shipwreck unemployment indemnity and loss of personal
	 
	25

	effects.
	 
	26

	“Management Services” means the services specified in sub-
	 
	27

	clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12.
	 
	28

	“ISM Code” means the International Management Code for the
	 
	29

	Safe Operation of Ships and for Pollution Prevention as adopted
	 
	30

	by the International Maritime Organization (IMO) by resolution
	 
	31

	A.741 (18) or any subsequent amendment thereto.
	 
	32

	“STCW 95” means the International Convention on Standards
	 
	33

	of Training, Certification and Watchkeeping for Seafarers, 1978,
	 
	34

	as amended in 1995 or any subsequent amendment thereto.
	 
	35

	 
	 
	 

	2. Appointment of Managers
	 
	36

	With effect from the day and year stated in Box 4 and continuing
	 
	37

	unless and until terminated as provided herein, the Owners
	 
	38

	hereby appoint the Managers and the Managers hereby agree
	 
	39

	to act as the Managers of the Vessel.
	 
	40

	 
	 
	 

	3. Basis of Agreement
	 
	41

	Subject to the terms and conditions herein provided, during the
	 
	42

	period of this Agreement, the Managers shall carry out
	 
	43

	Management Services in respect of the Vessel as agents for
	 
	44

	and on behalf of the Owners. The Managers shall have authority
	 
	45

	to take such actions as they may from time to time in their absolute
	 
	46

	discretion consider to be necessary to enable them to perform
	 
	47

	this Agreement in accordance with sound ship management
	 
	48

	practice. The Managers shall exercise their best efforts to
	 
	49

	implement the terms and conditions of this Agreement.
	 
	 

	3.1 Crew Management
	 
	50

	(only applicable if agreed according to Box 5)
	 
	51

	The Managers shall provide suitably qualified Crew for the Vessel
	 
	52

	as required by the Owners in accordance with the STCW 95
	 
	53

	requirements, provision of which includes but is not limited to
	 
	54

	the following functions:
	 
	55

	(i)   selecting and engaging the Vessel’s Crew, including payroll
	 
	56

	  arrangements, pension administration, and insurances for
	 
	57

	  the Crew other than those mentioned in Clause 6;
	 
	58

	(ii)  ensuring that the applicable requirements of the law of the
	 
	59

	  flag of the Vessel are satisfied in respect of manning levels,
	 
	60

	  rank, qualification and certification of the Crew and
	 
	61

	  employment regulations including Crew’s tax, social
	 
	62

	  insurance, discipline and other requirements;
	 
	63

	(iii) ensuring that all members of the Crew have passed a medical
	 
	64

  	   examination with a qualified doctor certifying that they are fit
	 
	65

	   for the duties for which they are engaged and are in possession
	 
	66

	   of valid medical certificates issued in accordance with
	 
	67

	   appropriate flag State requirements. In the absence of
	 
	68

	   applicable flag State requirements the medical certificate shall
	 
	69

	   be dated not more than three months prior to the respective
	 
	70

	  Crew members leaving their country of domicile and
	 
	71

	  maintained for the duration of their service on board the Vessel;
	 
	72

	(iv)  ensuring that the Crew shall have a command of the English
	 
	73

	  language of a sufficient standard to enable them to perform
	 
	74

	  their duties safely;
	 
	75

	(v)  arranging transportation of the Crew, including repatriation;
	 
	76

	(vi)  training of the Crew and supervising their efficiency;
	 
	77

	(vii) conducting union negotiations;
	 
	78

	(viii) operating the Managers’ drug and alcohol policy unless
	 
	79

	otherwise agreed.
	 
	80

	 
	 
	
	3.2 Technical Management
	 
	81

	(only applicable if agreed according to Box 6)
	 
	82

	The Managers shall provide technical management which
	 
	83

	includes, but is not limited to, the following functions:
	 
	84

	(i)    provision of competent personnel to supervise the
	 
	85

	   maintenance and general efficiency of the Vessel;
	 
	86

	(ii)   arrangement and supervision of dry dockings, repairs,
	 
	87

	   alterations and the upkeep of the Vessel to the standards
	 
	88

	   required by the Owners provided that the Managers shall
	 
	89

	   be entitled to incur the necessary expenditure to ensure
	 
	90

	   that the Vessel will comply with the law of the flag of the
	 
	91

	   Vessel and of the places where she trades, and all
	 
	92

	   requirements and recommendations of the classification
	 
	93

	   society;
	 
	94

	(iii)  arrangement of the supply of necessary stores, spares and
	 
	95

	   lubricating oil;
	 
	96

	(iv)  appointment of surveyors and technical consultants as the
	 
	97

	   Managers may consider from time to time to be necessary;
	 
	98

	(v)   development, implementation and maintenance of a Safety
	 
	99

	   Management System (SMS) in accordance with the ISM
	 
	100

	   Code (see sub-clauses 4.2 and 5.3).
	 
	101

	 
	 
	 

	3.3 Commercial Management
	 
	102

	(only applicable if agreed according to Box 7)
	 
	103

	The Managers shall provide the commercial operation of the
	 
	104

	Vessel, as required by the Owners, which includes, but is not
	 
	105

	limited to, the following functions:
	 
	106

	(i)    providing chartering services in accordance with the Owners’
	 
	107

	   instructions which include, but are not limited to, seeking
	 
	108

	   and negotiating employment for the Vessel and the conclusion
	 
	109

	   (including the execution thereof) of charter parties or other
	 
	110

	   contracts relating to the employment of the Vessel. If such a
	 
	111

	   contract exceeds the period stated in Box 13, consent thereto
	 
	112

	   in writing shall first be obtained from the Owners.
	 
	113

	(ii)   arranging of the proper payment to Owners or their nominees
	 
	114

	   of all hire and/or freight revenues or other moneys of
	 
	115

	   whatsoever nature to which Owners may be entitled arising
	 
	116

	   out of the employment of or otherwise in connection with the
	 
	117

	   Vessel.
	 
	118

	(iii)   providing voyage estimates and accounts and calculating of
	 
	119

	    hire, freights, demurrage and/or despatch moneys due from
	 
	120

	    or due to the charterers of the Vessel;
	 
	121

	(iv)    issuing of voyage instructions;
	 
	122

	(v)     appointing agents;
	 
	123

	(vi)    appointing stevedores;
	 
	124

	(vii)   arranging surveys associated with the commercial operation
	 
	125

	     of the Vessel.
	 
	126

	 
	 
	 

	3.4 Insurance Arrangements’
	 
	127

	(only applicable if agreed according to Box 8)
	 
	128

	The Managers shall arrange insurances in accordance with
	 
	129

	Clause 6, on such terms and conditions as the Owners shall
	 
	130

	 
	 
	

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. In the event of any modification made to the preprinted 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

 

  	have instructed or agreed, in particular regarding conditions,
	 
	131

	insured values, deductibles and franchises.
	 
	132

	 
	 
	 

	3.5 Accounting Services
	 
	133

	(only applicable if agreed according to Box 9)
	 
	134

	The Managers shall:
	 
	135

	(i)   establish an accounting system which meets the
	 
	136

	  requirements of the Owners and provide regular accounting
	 
	137

	  services, supply regular reports and records,
	 
	138

	(ii)  provide monthly financial reports, or other necessary
	 
	 

	  reports, to enable the Owners to fulfill their public reporting
	 
	 

	  requirements on a timely basis. All accounting and financial
	 
	 

	  reports provided by the Managers shall comply with the
	 
	 

	  requirements of Section 404 of the U.S. Sarbanes Oxley Act.
	 
	 

	(iii) maintain the records of all costs and expenditure incurred
	 
	139

	as well as data necessary or proper for the settlement of
	 
	140

	accounts between the parties.
	 
	141

	(iv) If the Owners determine in their sole discretion that they
	 
	 

	will likely be unable to, or be unable to without an unreasonable
	 
	 

	effort or expense, timely to file any of their public reports or
	 
	 

	believe they are likely to receive a “material weakness”
	 
	 

	qualification from their auditors with respect to their internal
	 
	 

	controls, in either case due to the Managers’ failure or probable
	 
	 

	failure to provide the necessary information within the required
	 
	 

	time frame, then the Managers hereby agree to give authorized
	 
	 

	employees of the Owners, their accountants or other designated
	 
	 

	advisors access to such documents, books, records, data, other
	 
	 

	information and staff of the Managers and their affiliates as is
	 
	 

	reasonably required to permit the Owners to timely meet any
	 
	 

	reporting obligations with which they are obligated, or choose, to
	 
	 

	comply, or to remedy the deficiency with respect to their internal
	 
	 

	controls as required by Section 404 of the U.S. Sarbanes Oxley
	 
	 

	legislation. Managers further agree to cause their affiliates and any
	 
	 

	employees of their Managers or their affiliates to cooperate with
	 
	 

	the designated representatives and the designated representatives
	 
	 

	shall be entitled to attend meetings and/or request information
	 
	 

	(unless such meetings or information pertain to commercially
	 
	 

	sensitive aspects of the Managers’ or an affiliate’s business) from
	 
	 

	the employees in order to obtain any necessary information.
	 
	 

	Managers shall bear all costs and expenses associated with the
	 
	 

	designated representatives’ services.
	 
	 

	 
	 
	 

	With regard to any and all loss, damage,
     delay or expense of 

whatsoever
  nature, whether direct or indirect and howsoever
  arising 

in the course of providing the Management Services set
     forth in this 

Clause 3.5, Managers will indemnify and save harmless
     the Owners,

their affiliates, and their respective current and former
     directors, 

officers, employees, subcontractors and current and future
     affiliates 

(the “Owner Indemnified Persons”) from and against any 

and all losses, damages, delays or expenses incurred or suffered by 

an Owner Indemnified Persons of whatsoever nature, whether direct

or indirect and howsoever arising, related to a breach by Managers of

their obligations set forth in this Clause 3.5; provided that the 

Managers’
     aggregate liability under this Clause 3.5 to Owner 

Indemnified
      Persons
      shall never exceed a total of ten times

the annual management fee payable
      hereunder. Notwithstanding 

Clauses 11.2, 11.3 or anything else herein to
      the contrary, 

Managers acknowledge and agree that in the event of any 

breach of this Clause 3.5, (i) the remedies provided herein are 

non-exclusive
      and shall not preclude any other remedies available at 

law or in equity (including,
      without limitation, specific performance 

and injunctive relief against further
      violations), and (ii) limitations to

indemnification set forth in Clauses 11.2 and 11.3 shall not apply to

the provisions of this Clause 3.5.
	 
	 

	 
	 
	 

	3.6 Sale or Purchase of the Vessel
	 
	142

	(only applicable if agreed according to Box 10)
	 
	143

	The Managers shall, in accordance with the Owners’ instructions,
	 
	144

	supervise the sale or purchase of the Vessel, including the
	 
	145

	performance of any sale or purchase agreement, but not
	 
	146

	negotiation of the same.
	 
	147

	 
	 
	 

	3.7 Provisions (only applicable if agreed according to Box 11)
	 
	148

	The Managers shall arrange for the supply of provisions.
	 
	149

	 
	 
	 

	3.8 Bunkering (only applicable if agreed according to Box 12)
	 
	150

	The Managers shall arrange for the provision of bunker fuel of the
	 
	151

	quality specified by the Owners as required for the Vessel’s trade.
	 
	152

	 
	 
	 

	4. Managers’ Obligations
	 
	153

	4.1 The Managers undertake to use their best endeavours to
	 
	154

	provide the agreed Management Services as agents for and on 
	 
	155

	behalf of the Owners in accordance with sound ship management
	 
	156

	practice and to protect and promote the interests of the Owners in
	 
	157

	all matters relating to the provision of services hereunder.
	 
	158

	Provided, however, that the Managers in the performance of their
	 
	159

	management responsibilities under this Agreement shall be entitled
	 
	160

	to have regard to their overall responsibility in relation to all vessels
	 
	161

	as may from time to time be entrusted to their management and
	 
	162

	in particular, but without prejudice to the generality of the foregoing,
	 
	163

	the Managers shall be entitled to allocate available supplies,
	 
	164

	manpower and services in such manner as in the prevailing
	 
	165

	circumstances the Managers in their absolute discretion consider
	 
	166

	to be fair and reasonable. The Managers shall not give
	 
	167

	preferential treatment to any vessel owned by CMA CGM and its
	 
	 

  	subsidiaries to the detriment of the Vessel or its Owners.
	 
	 

	4.2 Where the Managers are providing Technical Management
	 
	168

	in accordance with sub-clause 3.2, they shall procure that the
	 
	169

	requirements of the law of the flag of the Vessel are satisfied and
	 
	170

	they shall in particular be deemed to be the “Company” as defined
	 
	171

	by the ISM Code, assuming the responsibility for the operation of
	 
	172

	the Vessel and taking over the duties and responsibilities imposed
	 
	173

	by the ISM Code when applicable.
	 
	174

	5. Owners’ Obligations
	 
	175

	5.1 The Owners shall pay all sums due to the Managers punctually
	 
	176

	in accordance with the terms of this Agreement.
	 
	177

	5.2 Where the Managers are providing Technical Management
	 
	178

	in accordance with sub-clause 3.2, the Owners shall:
	 
	179

	(i)  procure that all officers and ratings supplied by them or on
	 
	180

	 their behalf comply with the requirements of STCW 95;
	 
	181

	(ii) instruct such officers and ratings to obey all reasonable orders
	 
	182

	 of the Managers in connection with the operation of the
	 
	183

	 Managers’ safety management system.
	 
	184

	5.3 Where the Managers are not providing Technical Management
	 
	185

	in accordance with sub-clause 3.2, the Owners shall procure that
	 
	186

	the requirements of the law of the flag of the Vessel are satisfied
	 
	187

	and that they, or such other entity as may be appointed by them
	 
	188

	and identified to the Managers, shall be deemed to be the
	 
	189

	“Company” as defined by the ISM Code assuming the responsibility
	 
	190

	for the operation of the Vessel and taking over the duties and
	 
	191

	responsibilities imposed by the ISM Code when applicable.
	 
	192

	6. Insurance Policies
	 
	193

	The Owners shall procure, whether by instructing the Managers
	 
	194

	under sub-clause 3.4 or otherwise, that throughout the period of
	 
	195

	this Agreement:
	 
	196

	6.1 at the Owners’ expense, the Vessel is insured for not less
	 
	197

	than her sound market value or entered for her full gross tonnage,
	 
	198

	as the case may be for:
	 
	199

	(i)   usual hull and machinery marine risks (including crew
	 
	200

	  negligence) and excess liabilities;
	 
	201

	(ii)  protection and indemnity risks (including pollution risks and
	 
	202

	  Crew Insurances); and
	 
	203

	(iii) war risks (including protection and indemnity and crew risks)
	 
	204

	in accordance with the best practice of prudent owners of
	 
	205

	vessels of a similar type to the Vessel, with first class insurance
	 
	206

	companies, underwriters or associations (“the Owners’
	 
	207

	Insurances”);
	 
	208

	6.2 all premiums and calls on the Owners’ Insurances are paid
	 
	209

	promptly by their due date,
	 
	210

	6.3 the Owners’ Insurances name the Managers and, subject
	 
	211

	to underwriters’ agreement, any third party designated by the
	 
	212

	Managers as a joint assured, with full cover, with the Owners
	 
	213

	obtaining cover in respect of each of the insurances specified in
	 
	214

	sub-clause 6.1:
	 
	215

	(i)   on terms whereby the Managers and any such third party
	 
	216

	  are liable in respect of premiums or calls arising in connection
	 
	217

	  with the Owners’ Insurances; or
	 
	218

	(ii)  if reasonably obtainable, on terms such that neither the
	 
	219

	  Managers nor any such third party shall be under any
	 
	220

	  liability in respect of premiums or calls arising in connection
	 
	221

	  with the Owners’ Insurances; or
	 
	222

	(iii) on such other terms as may be agreed in writing.
	 
	223

	Indicate alternative (i), (ii) or (iii) in Box 14. If Box 14 is left
	 
	224

	blank then (i) applies.
	 
	225

	6.4 written evidence is provided, to the reasonable satisfaction
	 
	226

	of the Managers, of their compliance with their obligations under
	 
	227

	Clause 6 within a reasonable time of the commencement of
	 
	228

	the Agreement, and of each renewal date and, if specifically
	 
	229

	requested, of each payment date of the Owners’ Insurances.
	 
	230

	 
	 
	 

	7. Income Collected and Expenses Paid on Behalf of Owners
	 
	231

 

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. In 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

 

  
    	7.1 All moneys collected by the Managers under the terms of
	 
	232

	this Agreement (other than moneys payable by the Owners to
	 
	233

	the Managers) and any interest thereon shall be held to the
	 
	234

	credit of the Owners in a separate bank account.
	 
	235

	7.2 All expenses incurred by the Managers under the terms
	 
	236

	of this Agreement on behalf of the Owners (including expenses
	 
	237

	as provided in Clause 8) may be debited against the Owners
	 
	238

	in the account referred to under sub-clause 7.1 but shall in any
	 
	239

	event remain payable by the Owners to the Managers on
	 
	240

	demand.
	 
	241

	 	 	 
	8. Management Fee
	 
	242

	8.1 The Owners shall pay to the Managers for their services
	 
	243

	as Managers under this Agreement an annual management
	 
	244

	fee as stated in Box 15 which shall be payable by equal
	 
	245

	monthly instalments in advance, the first instalment being
	 
	246

	payable on the commencement of this Agreement (see Clause
	 
	247

	2 and Box 4) and subsequent instalments being payable every
	 
	248

	month. 
	 
	249

	8.2 The management fee shall be subject to an annual review
	 
	250

	on the anniversary date of the Agreement and the proposed
	 
	251

	fee shall be presented in the annual budget referred to in sub-
	 
	252

	clause 9.1.
	 
	253

	8.3 The Managers shall, at no extra cost to the Owners, provide
	 
	254

	their own office accommodation, office staff, facilities and
	 
	255

	stationery. Without limiting the generality of Clause 7 the Owners
	 
	256

	shall reimburse the Managers for postage and communication
	 
	257

	expenses, travelling expenses, and other out of pocket
	 
	258

	expenses properly incurred by the Managers in pursuance of
	 
	259

	the Management Services.
	 
	260

	8.4 In the event of the appointment of the Managers being
	 
	261

	terminated by the Owners or the Managers in accordance with
	 
	262

	the provisions of Clauses 17 and 18 other than by reason of
	 
	263

	default by the Managers, or if the Vessel is lost, sold or otherwise
	 
	264

	disposed of, the “management fee” payable to the Managers
	 
	265

	according to the provisions of sub-clause 8.1, shall continue to
	 
	266

	be payable for a further period of three calendar months as
	 
	267

	from the termination date. In addition, provided that the
	 
	268

	Managers provide Crew for the Vessel in accordance with sub-
	 
	269

	clause 3.1:
	 
	270

	(i) the Owners shall continue to pay Crew Support Costs during
	 
	271

	the said further period of three calendar months and
	 
	272

	(ii) the Owners shall pay an equitable proportion of any
	 
	273

	Severance Costs which may materialize, not exceeding
	 
	274

	the amount stated in Box 16.
	 
	275

	8.5 If the Owners decide to lay-up the Vessel whilst this
	 
	276

	Agreement remains in force and such lay-up lasts for more
	 
	277

	than three months, an appropriate reduction of the management
	 
	278

	fee for the period exceeding three months until one month
	 
	279

	before the Vessel is again put into service shall be mutually
	 
	280

	agreed between the parties.
	 
	281

	8.6 Unless otherwise agreed in writing all discounts and
	 
	282

	commissions obtained by the Managers in the course of the
	 
	283

	management of the Vessel shall be credited to the Owners.
	 
	284

	 	 	 
	9. Budgets and Management of Funds
	 
	285

	9.1 The Managers shall present to the Owners annually a
	 
	286

	budget for the following twelve months in such form as the
	 
	287

	Owners require. The budget for the first year hereof is set out
	 
	288

	in Annex “C” hereto. Subsequent annual budgets shall be 
	 
	289

	prepared by the Managers and submitted to the Owners not
	 
	290

	less than three months before the anniversary date of the
	 
	291

	commencement of this Agreement (see Clause 2 and Box 4).
	 
	292

	Certain expenses are subject to a cap as provided in the Global
	 
	 

	Expense Agreement between the Managers and Global Ship
	 
	 

	Lease, Inc.
	 
	 

	9.2 The Owners shall indicate to the Managers their acceptance
	 
	293

	and approval of the annual budget within one month of
	 
	294

	presentation and in the absence of any such indication the
	 
	295

  

  	Managers shall be entitled to assume that the Owners have
	 
	296

	accepted the proposed budget.
	 
	297

	9.3 Following the agreement of the budget, the Managers shall
	 
	298

	prepare and present to the Owners their estimate of the working
	 
	299

	capital requirement of the Vessel and the Managers shall each
	 
	300

	month up-date this estimate. Based thereon, the Managers shall
	 
	301

	each month request the Owners in writing for the funds required
	 
	302

	to run the Vessel for the ensuing month, including the payment
	 
	303

	of any occasional or extraordinary item of expenditure, such as
	 
	304

	emergency repair costs, additional insurance premiums, bunkers
	 
	305

	or provisions. Such funds shall be received by the Managers
	 
	306

	within ten running days after the receipt by the Owners of the
	 
	307

	Managers’ written request and shall be held to the credit of the
	 
	308

	Owners in a separate bank account.
	 
	309

	9.4 The Managers shall produce a comparison between
	 
	310

	budgeted and actual income and expenditure of the Vessel in
	 
	311

	such form as required by the Owners monthly or at such other
	 
	312

	intervals as mutually agreed. 
	 
	313

	9.5 Notwithstanding anything contained herein to the contrary,
	 
	314

	the Managers shall in no circumstances be required to use or 
	 
	315

	commit their own funds to finance the provision of the
	 
	316

	Management Services.
	 
	317

	 	 	 
	10. Managers’ Right to Sub-Contract
	 
	318

	The Managers shall not have the right to sub-contract any of
	 
	319

	their obligations hereunder, including those mentioned in sub-
	 
	320

	clause 3.1, without the prior written consent of the Owners which
	 
	321

	shall not be unreasonably withheld. In the event of such a sub-
	 
	322

	contract the Managers shall remain fully liable for the due
	 
	323

	performance of their obligations under this Agreement.
	 
	324

	 	 	 
	11. Responsibilities
	 
	325

	11.1 Force Majeure - Neither the Owners nor the Managers
	 
	326

	shall be under any liability for any failure to perform any of their
	 
	327

	obligations hereunder by reason of any cause whatsoever of
	 
	328

	any nature or kind beyond their reasonable control.
	 
	329

	11.2 Liability to Owners - (i) Without prejudice to sub-clause
	 
	330

	11.1, the Managers shall be under no liability whatsoever to the
	 
	331

	Owners for any loss, damage, delay or expense of whatsoever
	 
	332

	nature, whether direct or indirect, (including but not limited to
	 
	333

	loss of profit arising out of or in connection with detention of or
	 
	334

	delay to the Vessel) and howsoever arising in the course of
	 
	335

	performance of the Management Services UNLESS same is
	 
	336

	proved to have resulted solely from the negligence, gross
	 
	337

	negligence or wilful default of the Managers or their employees,
	 
	338

	or agents or sub-contractors employed by them in connection
	 
	339

	with the Vessel, in which case (save where loss, damage, delay
	 
	340

	or expense has resulted from the Managers’ personal act or
	 
	341

	omission committed with the intent to cause same or recklessly
	 
	342

	and with knowledge that such loss, damage, delay or expense
	 
	343

	would probably result) the Managers’ liability for each incident
	 
	344

	or series of incidents giving rise to a claim or claims shall never
	 
	345

	exceed a total of ten times the annual management fee payable
	 
	346

	hereunder.
	 
	347

	(ii) Notwithstanding anything that may appear to the contrary in
	 
	348

	this Agreement, the Managers shall not be liable for any of the
	 
	349

	actions of the Crew, even if such actions are negligent, grossly
	 
	350

	negligent or wilful, except only to the extent that they are shown
	 
	351

	to have resulted from a failure by the Managers to discharge
	 
	352

	their obligations under sub-clause 3.1, in which case their liability
	 
	353

	shall be limited in accordance with the terms of this Clause 11.
	 
	354

	11.3 Indemnity - Except to the extent and solely for the amount
	 
	355

	therein set out that the Managers would be liable under sub-
	 
	356

	clause 11.2, the Owners hereby undertake to keep the Managers
	 
	357

	and their employees, agents and sub-contractors indemnified
	 
	358

	and to hold them harmless against all actions, proceedings,
	 
	359

	claims, demands or liabilities whatsoever or howsoever arising
	 
	360

	which may be brought against them or incurred or suffered by
	 
	361

	them arising out of or in connection with the performance of the
	 
	362

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. In the event of any modification made to the preprinted 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

 

  
    	Agreement, and against and in respect of all costs, losses,
	 
	363

	damages and expenses (including legal costs and expenses on
	 
	364

	a full indemnity basis) which the Managers may suffer or incur
	 
	365

	(either directly or indirectly) in the course of the performance of
	 
	366

	this Agreement.
	 
	367

	11.4 “Himalaya” - It is hereby expressly agreed that no
	 
	368

	employee or agent of the Managers (including every sub-
	 
	369

	contractor from time to time employed by the Managers) shall in
	 
	370

	any circumstances whatsoever be under any liability whatsoever
	 
	371

	to the Owners for any loss, damage or delay of whatsoever kind
	 
	372

	arising or resulting directly or indirectly from any act, neglect or
	 
	373

	default on his part while acting in the course of or in connection
	 
	374

	with his employment and, without prejudice to the generality of
	 
	375

	the foregoing provisions in this Clause 11, every exemption,
	 
	376

	limitation, condition and liberty herein contained and every right,
	 
	377

	exemption from liability, defence and immunity of whatsoever
	 
	378

	nature applicable to the Managers or to which the Managers are
	 
	379

	entitled hereunder shall also be available and shall extend to
	 
	380

	protect every such employee or agent of the Managers acting
	 
	381

	as aforesaid and for the purpose of all the foregoing provisions
	 
	382

	of this Clause 11 the Managers are or shall be deemed to be
	 
	383

	acting as agent or trustee on behalf of and for the benefit of all
	 
	384

	persons who are or might be their servants or agents from time
	 
	385

	to time (including sub-contractors as aforesaid) and all such
	 
	386

	persons shall to this extent be or be deemed to be parties to this
	 
	387

	Agreement.
	 
	388

	 
	 
	 

	12. Documentation
	 
	389

	Where the Managers are providing Technical Management in
	 
	390

	accordance with sub-clause 3.2 and/or Crew Management in
	 
	391

	accordance with sub-clause 3.1, they shall make available,
	 
	392

	upon Owners’ request, all documentation and records related
	 
	393

	to the Safety Management System (SMS) and/or the Crew
	 
	394

	which the Owners need in order to demonstrate compliance
	 
	395

	with the ISM Code and STCW 95 or to defend a claim against
	 
	396

	a third party.
	 
	397

	 
	 
	 

	13. General Administration
	 
	398

	13.1 The Managers shall handle and settle all claims arising
	 
	399

	out of the Management Services hereunder and keep the Owners
	 
	400

	informed regarding any incident of which the Managers become
	 
	401

	aware which gives or may give rise to claims or disputes involving
	 
	402

	third parties.
	 
	403

	13.2 The Managers shall, as instructed by the Owners, bring
	 
	404

	or defend actions, suits or proceedings in connection with matters
	 
	405

	entrusted to the Managers according to this Agreement.
	 
	406

	13.3 The Managers shall also have power to obtain legal or
	 
	407

	technical or other outside expert advice in relation to the handling
	 
	408

	and settlement of claims and disputes or all other matters
	 
	409

	affecting the interests of the Owners in respect of the Vessel.
	 
	410

	13.4 The Owners shall arrange for the provision of any 
	 
	411

	necessary guarantee bond or other security. 
	 
	412

	13.5 Any costs reasonably incurred by the Managers in 
	 
	413

	carrying out their obligations according to Clause 13 shall be 
	 
	414

	reimbursed by the Owners. 
	 
	415

	  
	 
	 

	14. Auditing
	 
	416

	The Managers shall at all times maintain and keep true and
	 
	417

	correct accounts and shall make the same available for inspection
	 
	418

	and auditing by the Owners at such times as may be mutually
	 
	419

	agreed. On the termination, for whatever reasons, of this
	 
	420

	Agreement, the Managers shall release to the Owners, if so
	 
	421

	requested, the originals where possible, or otherwise certified
	 
	422

	copies, of all such accounts and all documents specifically relating
	 
	423

	to the Vessel and her operation.
	 
	424

	 
	 
	 

	15. Inspection of Vessel
	 
	425

	The Owners shall have the right at any time after giving
	 
	426

	reasonable notice to the Managers to inspect the Vessel for any
	 
	427

	 
	 
	 

  

  	reason they consider necessary.
	 
	428

	 
	 
	 

	16. Compliance with Laws and Regulations
	 
	429

	The Managers will not do or permit to be done anything which
	 
	430

	might cause any breach or infringement of the laws and
	 
	431

	regulations of the Vessel’s flag, or of the places where she trades.
	 
	432

	 
	 
	 

	17. Duration of the Agreement
	 
	433

	This Agreement shall come into effect on the day and year stated
	 
	434

	in Box 4 and shall continue until the date stated in Box 17.
	 
	435

	Thereafter it shall continue until terminated by either party giving
	 
	436

	to the other notice in writing, in which event the Agreement shall
	 
	437

	terminate upon the expiration of a period of two months from the
	 
	438

	date upon which such notice was given.
	 
	439

	 
	 
	 

	18. Termination
	 
	440

	18.1 Owners’ default
	 
	441

	(i) The Managers shall be entitled to terminate the Agreement
	 
	442

	with immediate effect by notice in writing if any moneys
	 
	443

	payable by the Owners under this Agreement and/or the
	 
	444

	owners of any associated vessel, details of which are listed
	 
	445

	in Annex “D”, shall not have been received in the Managers’
	 
	446

	nominated account within ten thirty running days of receipt by
	 
	447

	the Owners of the Managers written request or if the Vessel
	 
	448

	is repossessed by the Mortgagees.
	 
	449

	(ii) If the Owners:
	 
	450

	(a) fail to meet their obligations under sub-clauses 5.2
	 
	451

	and 5.3 of this Agreement for any reason within their
	 
	452

	control, or
	 
	453

	(b) proceed with the employment of or continue to employ
	 
	454

	the Vessel in the carriage of contraband, blockade
	 
	455

	running, or in an unlawful trade, or on a voyage which
	 
	456

	in the reasonable opinion of the Managers is unduly
	 
	457

	hazardous or improper,
	 
	458

	the Managers may give notice of the default to the Owners,
	 
	459

	requiring them to remedy it as soon as practically possible.
	 
	460

	In the event that the Owners fail to remedy it within a
	 
	461

	reasonable time to the satisfaction of the Managers, the
	 
	462

	Managers shall be entitled to terminate the Agreement
	 
	463

	with immediate effect by notice in writing.
	 
	464

	18.2 Managers’ Default
	 
	465

	If the Managers fail to meet their obligations under Clauses 3
	 
	466

	and 4 of this Agreement for any reason within the control of the
	 
	467

	Managers, the Owners may give notice to the Managers of the
	 
	468

	default, requiring them to remedy it as soon as practically
	 
	469

	possible. In the event that the Managers fail to remedy it within a
	 
	470

	reasonable time to the satisfaction of the Owners, the Owners
	 
	471

	shall be entitled to terminate the Agreement with immediate effect
	 
	472

	by notice in writing. This Agreement may be cancelled by Owners
	 
	473

	if the Managers fail to meet their obligation under this
	 
	 

	Agreement for any reason within their control and fails to
	 
	 

	remedy the default. In addition, Owners have after a period of
	 
	 

	one year the option of terminating this Agreement upon three 
	 
	 

	 months notice if they can secure more competitive pricing and
	 
	 

	other commercial terms from a recognized third party, such
	 
	 

	party to be approved by charterers of the vessel, and such

approval shall not be unduly withheld, subject to Managers’
	 
	 

	right to match the third party’s terms within one month of
	 
	 

	receipt of such notice of termination. Owners’ notice of 

termination shall set forth in detail and reasonably documented
	 
	 

	the more competitive pricing and other commercial terms
	 
	 

	offered to Owners by such third party. If Managers agree to
	 
	 

	match all such terms, then Managers shall send written notice
	 
	 

	of acceptance to Owners and this Agreement shall not terminate
	 
	 

	and shall be deemed amended to incorporate such revised
	 
	 

	terms.
	 
	 

	18.3 Extraordinary Termination
	 
	474

	This Agreement shall be deemed to be terminated in the case of
	 
	475

	the sale of the Vessel or if the Vessel becomes a total loss or is
	 
	476

	declared as a constructive or compromised or arranged total
	 
	477

	loss or is requisitioned.
	 
	478

	18.4 For the purpose of sub-clause 18.3 hereof
	 
	 479

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. In 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

 

  
    	(i)   the date upon which the Vessel is to be treated as having 
	480

	been sold or otherwise disposed of shall be the date on
	481

	which the Owners cease to be registered as Owners of
	482

	the Vessel;
	483

	(ii)  the Vessel shall not be deemed to be lost unless either
	484

	she has become an actual total loss or agreement has
	485

	been reached with her underwriters in respect of her
	486

	constructive, compromised or arranged total loss or if such
	487

	agreement with her underwriters is not reached it is
	488

	adjudged by a competent tribunal that a constructive loss
	489

	of the Vessel has occurred.
	490

	18.5 This Agreement shall terminate forthwith in the event of
	491

	an order being made or resolution passed for the winding up,
	492

	dissolution, liquidation or bankruptcy of either party (otherwise
	493

	than for the purpose of reconstruction or amalgamation) or if a
	494

	receiver is appointed, or if it suspends payment, ceases to carry
	495

	on business or makes any special arrangement or composition
	496

	with its creditors. The Managers have the option to terminate the
	497

	agreement if there is a change in control of the Owners. Notwithstanding anything herein to the contrary, the Owners may sell or transfer the Vessel to another wholly owned subsidiary of Global Ship Lease, Inc. and such sale or transfer shall not constitute a violation of this Agreement or a change in control of the Owners. 
	

	18.6 The termination of this Agreement shall be without
	498

	prejudice to all rights accrued due between the parties prior to
	499

	the date of termination.
	500

	 	 
	19. Law and Arbitration
	501

	19.1 This Agreement shall be governed by and construed in
	502

	accordance with English law and any dispute arising out of or
	503

	in connection with this Agreement shall be referred to arbitration
	504

	in London in accordance with the Arbitration Act 1996 or
	505

	any statutory modification or re-enactment thereof save to
	506

	the extent necessary to give effect to the provisions of this
	507

	Clause.
	508

	The arbitration shall be conducted in accordance with the
	509

	London Maritime Arbitrators Association (LMAA) Terms
	510

	current at the time when the arbitration proceedings are
	511

	commenced.
	512

	The reference shall be to three arbitrators. A party wishing
	513

	to refer a dispute to arbitration shall appoint its arbitrator
	514

	and send notice of such appointment in writing to the other
	515

	party requiring the other party to appoint its own arbitrator
	516

	within 14 calendar days of that notice and stating that it will
	517

	appoint its arbitrator as sole arbitrator unless the other party
	518

	appoints its own arbitrator and gives notice that it has done
	519

	so within the 14 days specified. If the other party does not
	520

	appoint its own arbitrator and give notice that it has done so
	521

	within the 14 days specified, the party referring a dispute to
	522

	arbitration may, without the requirement of any further prior
	523

	notice to the other party, appoint its arbitrator as sole
	524

	arbitrator and shall advise the other party accordingly. The
	525

  

  	award of a sole arbitrator shall be binding on both parties
	526

	as if he had been appointed by agreement.
	527

	Nothing herein shall prevent the parties agreeing in writing
	528

	to vary these provisions to provide for the appointment of a
	529

	sole arbitrator.
	530

	In cases where neither the claim nor any counterclaim
	531

	exceeds the sum of USD50,000 (or such other sum as the
	532

	parties may agree) the arbitration shall be conducted in
	533

	accordance with the LMAA Small Claims Procedure current
	534

	at the time when the arbitration proceedings are commenced.
	535

	19.2 This Agreement shall be governed by and construed
	536

	in accordance with Title 9 of the United States Code and
	537

	the Maritime Law of the United States and any dispute
	538

	arising out of or in connection with this Agreement shall be
	539

	referred to three persons at New York, one to be appointed
	540

	by each of the parties hereto, and the third by the two so
	541

	chosen; their decision or that of any two of them shall be
	542

	final, and for the purposes of enforcing any award, 
	543

	judgement may be entered on an award by any court of
	544

	competent jurisdiction. The proceedings shall be conducted
	545

	in accordance with the rules of the Society of Maritime
	546

	Arbitrators, Inc.
	547

	In cases where neither the claim nor any counterclaim
	548

	exceeds the sum of USD50,000 (or such other sum as the
	549

	parties may agree) the arbitration shall be conducted in
	550

	accordance with the Shortened Arbitration Procedure of the
	551

	Society of Maritime Arbitrators, Inc. current at the time when
	552

	the arbitration proceedings are commenced.
	553

	19.3 This Agreement shall be governed by and construed
	554

	in accordance with the laws of the place mutually agreed by
	555

	the parties and any dispute arising out of or in connection
	556

	with this Agreement shall be referred to arbitration at a
	557

	mutually agreed place, subject to the procedures applicable
	558

	there.
	559

	19.4 If Box 18 in Part I is not appropriately filled in, sub-
	560

	clause 19.1 of this Clause shall apply.
	561

	Note: 19.1, 19.2 and 19.3 are alternatives; indicate
	562

	alternative agreed in Box 18.
	563

	 	 
	20. Notices
	564

	20.1 Any notice to be given by either party to the other
	565

	party shall be in writing and may be sent by fax, telex,
	566

	registered or recorded mail or by personal service.
	567

	20.2 The address of the Parties for service of such
	568

	communication shall be as stated in Boxes 19 and 20,
	569

	respectively.
	570

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. In 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.

 

SCHEDULE TO EXHIBIT 10.13

In accordance with Instruction 2 to Item 601 of Regulation S-K under the Securities Act of 1933, the following is a schedule of documents substantially identical in all material respects to the form of ship management agreement attached as Exhibit 10.13 to this Registration Statement, except as to the parties thereto, the vessel names or other material details.

 

	
            
      Manager

            
 	
                         
 	
            
      Owner Name
 
 	
                         
 	
            
            Vessel Name
 
 
	
                        CMA Ship Management 
 	
                         
 	
                        Global Ship Lease 1 Limited
 	
                         
 	
                        Ville d’Orion
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 2 Limited
 	
                         
 	
                        Ville d’Aquarius
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 3 Limited
 	
                         
 	
                        CMA CGM Matisse
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 4 Limited
 	
                         
 	
                        CMA CGM Utrillo
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 5 Limited
 	
                         
 	
                        MOL Rainbow
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 6 Limited
 	
                         
 	
                        Julie Delmas
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 7 Limited
 	
                         
 	
                        Kumasi 
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 8 Limited
 	
                         
 	
                        Marie Delmas
 
	
                        CMA Ship Management
 	
                         
 	
                        Global Ship Lease 9 Limited
 	
                         
 	
                        CMA CGM La Tour
 
	
                        CMA Ship Management 
 	
                         
 	
                        Global Ship Lease 10 Limited
 	
                         
 	
                        CMA CGM Manet
 
	
                        CMA Ship Management 
 	
                         
 	
                        GSL Alcazar Inc.
 	
                         
 	
                        CMA CGM Alcazar (Newbuilding 1)
 
	
                        CMA Ship Management 
 	
                         
 	
                        GSL Château d’If Inc.
 	
                         
 	
                        CMA CGM Château d’lf (Newbuilding 2)
 
	
                        CMA Ship Management 
 	
                         
 	
                        Global Ship Lease 13 Limited
 	
                         
 	
                        Hull 4.126 (Newbuilding 3)
 
	
                        CMA Ship Management 
 	
                         
 	
                        Global Ship Lease 14 Limited
 	
                         
 	
                        CMA CGM Jamaica
 
	
                        CMA Ship Management 
 	
                         
 	
                        Global Ship Lease 15 Limited
 	
                         
 	
                        CMA CGM Sambhar
 
	
                        CMA Ship Management 
 	
                         
 	
                        Global Ship Lease 16 Limited
 	
                         
 	
                        CMA CGM America
 
	
                        CMA Ship Management 
 	
                         
 	
                        Global Ship Lease 17 Limited
 	
                         
 	
                        CMA CGM BerliozINDEMNIFICATION AGREEMENT 

THIS INDEMNIFICATION AGREEMENT (this “Agreement”), effective as of                     , 2007 between Global Ship Lease, Inc., a Republic of the Marshall Islands corporation (the “Company”), and                     , an individual (the “Indemnitee”).

WHEREAS, it is essential that the Company attract and maintain responsible, qualified directors and officers;

WHEREAS, the Indemnitee is a director or officer of the Company;

WHEREAS, both the Company and the Indemnitee recognize the risk of litigation and other claims that may be asserted against directors and officers of public companies, as well as the possibility that in certain situations a threat of litigation may be employed to deter them from exercising their judgment in the best interests of the Company, and the consequent need to allocate the risk of personal liability through indemnification and insurance;

WHEREAS, Article 7 of the Amended and Restated Articles of Incorporation of the Company (the “Charter”) requires the Company to indemnify and advance expenses to its directors and officers to the fullest extent permitted by law and the Indemnitee is willing to serve or continue to serve as a director or officer of the Company provided that he be indemnified as provided herein; and

WHEREAS, in recognition of the Indemnitee’s need for substantial protection against personal liability and of the Indemnitee’s reliance on the indemnification provisions of the Charter, and in part to provide the Indemnitee with specific contractual assurance that the protection promised by the Charter will be available to the Indemnitee (regardless of, among other things, any amendment to or revocation of the Charter or any change in the composition of the Company’s Board or any acquisition transaction involving the Company), the Company wishes to provide in this Agreement for the indemnification of, and the advancement of expenses to, the Indemnitee to the fullest extent permitted by law and as set forth in this Agreement, and, to the extent insurance is maintained, for the continued coverage of the Indemnitee under the
Company’s directors and officers liability insurance policies.

NOW, THEREFORE, in consideration of the promises contained herein and of the Indemnitee continuing to serve the Company directly or, at its request, another enterprise, and intending to be legally bound hereby, the parties hereto do hereby covenant and agree as follows:

1. CERTAIN DEFINITIONS 

(a) Board:  The Board of Directors of the Company.

(b) Change in Control:  The occurrence of any of the following:

(i) any person or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), acquiring “beneficial ownership” (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company;

(ii) the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all the Company’s assets;

(iii) the shareholders of the Company approve any merger, consolidation, reorganization or similar event of the Company or any of its subsidiaries, as a result of which the holders of the voting stock of the Company immediately prior to such merger, consolidation, reorganization or similar event will not directly or indirectly hold at least

 

 

fifty-one percent (51%) of the aggregate voting power of the capital stock of the surviving entity; or

(iv) a majority of the members of the Board are no longer Continuing Directors; as used herein, a “Continuing Director” means any member of the Board who was a member of the Board on the date hereof or was nominated for election or elected to the Board with the approval of a majority of the Continuing Directors who were members of the Board at the time of such nomination or election.

(c)  Exchange Act:  The Securities Exchange Act of 1934, as amended.

(d)  Expenses:  Expenses of every kind actually and reasonably incurred in connection with a Proceeding, including, without limitation, counsel fees. Expenses shall include, without limitation, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone and fax charges, postage, delivery service charges, costs associated with procurement of surety bonds or loans or other costs associated with the stay of a judgment, penalty or fine, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding. 

(e)  Proceeding:  Any threatened, pending or completed action, suit, arbitration or proceeding, whether civil, criminal, administrative, or investigative, and any appeal thereof, including without limitation in an action by or in the right of the Company. A “Proceeding” may be instituted by another party (including, without limitation, any governmental entity), or by or in the right of the Company, or by the Indemnitee. The term “Proceeding” shall also include any preliminary inquiry or investigation that the Indemnitee in good faith believes might lead to the institution of a “Proceeding.”

2. TERM OF AGREEMENT:  This Agreement shall continue until and terminate upon the later of (i) the tenth anniversary after the date that the Indemnitee shall have ceased to serve as a director or officer of the Company (or in any other capacity in respect of which he has rights of indemnification hereunder) (the “Anniversary Date”); or (ii) the final determination of all pending Proceedings commenced prior to the Anniversary Date in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder, including without limitation any Proceeding commenced by the Indemnitee to enforce the Indemnitee’s rights under this Agreement. 

3. RIGHT TO INDEMNIFICATION AND ADVANCE; HOW DETERMINED. 

(a)  Subject to this Agreement, in the event the Indemnitee was, is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a Proceeding by reason of (or arising in whole or in part out of) Indemnitee’s present or former status as a director or officer of the Company, or Indemnitee having served at the request of the Company in such capacity in another corporation, partnership, joint venture, trust or other enterprise, the Company shall indemnify the Indemnitee to the fullest extent permitted by law in effect on the date hereof (and to such greater extent as applicable law may hereafter permit) against the obligation to pay any and all Expenses, judgments, fines and amounts paid in settlement, including any interest assessed, incurred on account of or with respect to such
Proceeding. Such indemnification shall be made as soon as practicable, but in any event no later than 30 days after a written demand, which reasonably evidences the Expenses actually and reasonably incurred by the Indemnitee, is presented to the Secretary of the Company. This Agreement shall be effective as well with respect to any such Proceedings which relate to acts or omissions occurring or allegedly occurring prior to the execution of this Agreement, and regardless of whether the Company may not have been incorporated at the time of such acts or omissions. 

 

 

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(b)  In connection with any such Proceeding, if so requested in writing by the Indemnitee, the Company shall advance within seven business days of such written request and upon receipt by the Company of an undertaking by or on behalf of the Indemnitee to repay such amount if it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Company as authorized hereunder, any and all reasonable Expenses to the Indemnitee (an “Expense Advance”). No security shall be required for such undertaking and such undertaking shall be accepted without reference to the recipient’s financial ability to make repayment. An Expense Advance shall be made without awaiting the results of the Proceeding giving rise to the Expenses or the outcome of any further
Proceeding to determine the Indemnitee’s right to indemnification hereunder, and without making any preliminary determination as to the Indemnitee’s state of mind at the time of the activities in question. 

(c)  Notwithstanding the foregoing, the Company shall not be obligated to indemnify under this Section 3 a person made a party to a Proceeding if (i) the Board determines that the Indemnitee’s activities in question were at the time taken known or believed by him to be clearly in conflict with the best interests of the Company or (ii) in the event and to the extent that such Indemnitee has entered a plea of guilty in an applicable criminal Proceeding. Subject to the limitations set forth herein and absent actual and material fraud in the request for indemnification, the obligation of the Company promptly to make an Expense Advance(s) pursuant to subsection (b) above is unqualified, is not subject to any means or other credit test, and shall be enforceable by the Indemnitee in summary judicial proceedings; but shall be subject, however, to the condition
subsequent that if, when and to the extent a court of competent jurisdiction or arbitral body before which the parties hereto agree to resolve a claim hereunder or any person or persons or entity or other body with jurisdiction or authority over the matter permitted by the Marshall Islands Business Corporations Act (the “BCA”) may subsequently finally determine that the Indemnitee is not entitled to indemnification under the terms of this Agreement or under applicable law for the relevant Expenses, then the Company shall be entitled to be reimbursed by the Indemnitee for all such amounts theretofore advanced. The obligation of the Indemnitee to make such reimbursement shall be unsecured and without interest. The Indemnitee hereby undertakes so to reimburse the Company, the receipt of which unsecured and interest free undertaking is hereby accepted by the Company as the sole condition of advancing
the Indemnitee’s Expenses pursuant to subsection (b) above. 

(d)  Notwithstanding anything in this Agreement to the contrary, the Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with any Proceeding initiated by the Indemnitee unless the Board has authorized or consented to the initiation of such Proceeding. For purposes of the foregoing sentence, a Proceeding shall not be deemed to have been “initiated” by the Indemnitee where its primary purpose is to enforce the Indemnitee’s rights under this Agreement or if it relates to counterclaims or affirmative defenses asserted by the Indemnitee in an action brought against an Indemnitee. 

4. INDEMNIFICATION FOR ENFORCEMENT EXPENSES. The Company shall indemnify the Indemnitee against any and all Expenses and Expense Advances in accordance with Section 3 (including attorneys’ fees) in connection with any Proceeding initiated by the Indemnitee for:  (i) indemnification or advancement of Expenses by the Company under the BCA, the Charter, this Agreement, or any other agreement or Company by-law, vote of shareholders or resolution of the Board now or hereafter in effect relating to indemnification; or (ii) recovery under any directors’ and officers’ liability insurance policies maintained by the Company. The Indemnitee shall reasonably cooperate with the person, persons or entity making the determination with respect to the Indemnitee’s entitlement to indemnification under this Agreement.
Any expenses actually and reasonably incurred by the Indemnitee in so cooperating shall be borne by the Company (irrespective of the determination as to the Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold the Indemnitee harmless therefrom. 

5. SUCCESS; PARTIAL INDEMNITY. Notwithstanding any other provision of this Agreement, to the extent that the Indemnitee has been successful on the merits or otherwise in defense of

 

 

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any or all claims made against him or her in a Proceeding or in defense of any issue or matter therein, including without limitation dismissal without prejudice, the Indemnitee shall be indemnified against all Expenses actually and reasonably incurred in connection therewith. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, fines or amounts paid in settlement as a result of a Proceeding but not, however, for all of the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion thereof to which the Indemnitee is entitled. 

6. BURDEN OF PROOF. In connection with any determination by any person or persons or entity or other body as to whether the Indemnitee is entitled to be indemnified hereunder, the Indemnitee shall be presumed to be entitled to indemnification under this Agreement, and the burden of overcoming such presumption shall be on the Company. The termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon a plea of no contest, or its equivalent, shall not, of itself, create a presumption that the Indemnitee did not act in good faith and in a manner which he reasonably believed to be in, or not opposed to, the best interest of the Company and, with respect to a criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful, or that a court has determined that indemnification is
not permitted. In addition, neither the failure of the Board to have made a determination as to the Indemnitee’s state of mind, nor an actual determination by the Board that the Indemnitee had a state of mind prior to the commencement of arbitration (if applicable) or legal proceedings to secure a determination that the Indemnitee should be indemnified under this agreement and applicable law, shall be a defense to the Indemnitee’s claim or create a presumption of any kind. The knowledge and/or actions, or failure to act, of any director, officer, agent, fiduciary or employee of the Company shall not be imputed to the Indemnitee for purposes of determining the right to indemnification under this Agreement. 

7. NON-EXCLUSIVITY; GREATER INDEMNIFICATION. The rights of the Indemnitee hereunder shall be in addition to any other rights the Indemnitee may have under the Charter, the BCA, any by-law of the Company, any other agreement, a vote of shareholders or a resolution of the Board or otherwise. To the extent that a change in the BCA (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under the Charter and this Agreement, it is the intent of the parties that the Indemnitee shall enjoy, by this Agreement, the greater benefits so afforded by such change. 

8. CONTRIBUTION. In the event the indemnification provided for in Section 3 of this Agreement is unavailable to the Indemnitee in connection with any Proceeding under any federal law, the Company, in lieu of indemnifying the Indemnitee, shall contribute to the Expenses actually and reasonably incurred by the Indemnitee in such proportion as deemed fair and reasonable by the Board, in light of all the circumstances of the Proceeding giving rise to such Expenses, in order to reflect (i) the relative benefits received by the Company and the Indemnitee as a result of the event(s) and/or transaction(s) giving rise to such Proceeding, and (ii) the relative fault of each. 

9. NOTICE OF PROCEEDINGS; DEFENSE OF CLAIM. The Indemnitee agrees to notify the Company in writing within 20 days upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder, but the Indemnitee’s failure so to notify the Company shall not relieve the Company from any liability which it may have to the Indemnitee except to the extent the Company’s ability to defend in such Proceeding is actually and materially prejudiced thereby, nor will such failure relieve the Company from any liability which it may have to the Indemnitee other than under this Agreement. Notwithstanding any other provision of this Agreement, with respect to any such Proceeding of which the
Indemnitee notifies the Company, (a) the Company shall be entitled to participate therein at its own expense; (b) except as provided in this Section 9, to the extent that it may wish, the Company, jointly with any other indemnifying party similarly notified, shall be entitled to assume the defense thereof, with counsel satisfactory to the Indemnitee. After notice from the Company to the Indemnitee of its election so to assume the defense thereof, the Company shall not be liable to the Indemnitee under this Agreement for any expenses of counsel subsequently incurred by the Indemnitee in connection with the defense thereof except as otherwise provided below. The Indemnitee

 

 

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shall have the right to employ the Indemnitee’s own counsel in such Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of the Indemnitee unless:  (i) the employment of counsel by the Indemnitee has been authorized in writing in advance by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense of such Proceeding, (iii) the Indemnitee shall have reasonably concluded that the Indemnitee has separate defenses or counterclaims to assert with respect to any issue that are inconsistent with the position of other defendants in such Proceeding, (iv) there shall have been a Change of Control, or (v) the Company shall not within 60 calendar days of receipt of
notice from the Indemnitee in fact have employed counsel reasonably acceptable to assume the defense of the Proceeding, in each of which cases, the fees and expenses of the Indemnitee’s counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which the Indemnitee shall have made the conclusion provided for in (ii) above; and (c) if the Company has assumed the defense of a Proceeding, the Company shall not be liable to indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s written consent. The Company shall not settle any Proceeding in any manner  without the Indemnitee’s prior written consent unless such settlement solely involves the payment of money for which the Indemnitee is fully indemnified and includes an unconditional release of the Indemnity from all liability on any claims
that are the subject matter of such Proceeding. Neither the Company nor the Indemnitee will unreasonably withhold its consent to any proposed settlement. 

10. LIABILITY INSURANCE. To the extent the Company maintains an insurance policy or policies providing directors’ and officers’ liability insurance, the Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any Company director or officer. However, the right of the Indemnitee to recover any amounts due to the Indemnitee hereunder shall not be limited to the proceeds of such insurance or any other means to ensure payment.

11. PERIOD OF LIMITATIONS. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company against the Indemnitee, the Indemnitee’s spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however, that if any shorter period of limitations is applicable to any such cause of action, by law or otherwise, such shorter period shall govern. 

12. NO EMPLOYMENT RIGHTS. Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment. 

13. MUTUAL ACKNOWLEDGMENT. Both the Company and Indemnitee acknowledge that in certain instances, United States federal law or public policy may override applicable United States state law and prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the United States Securities and Exchange Commission (the “SEC”) has taken the position that indemnification is not permissible for liabilities arising under United States’ federal securities laws, and United States’ federal legislation prohibits indemnification for certain Employee Retirement Income Security Act (“ERISA”) violations. Indemnitee understands and acknowledges that, due to the Company’s listing on the New York Stock Exchange or other United
States-based exchange, the Company has undertaken or may be required in the future to undertake with the SEC to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee.

14. PROCEDURES VALID. Each of the Company and the Indemnitee shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Agreement that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company and the Indemnitee, respectively, is bound by all the provisions of this Agreement. If a final determination is made that the Indemnitee is entitled to

 

 

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indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration (including, but not limited to, any appellate Proceedings). 

15. AMENDMENTS. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 

16. SUBROGATION. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute an appropriate document in favor of the Company to secure such rights. 

17. NO DUPLICATION OF PAYMENTS. The Company shall not be liable under this Agreement to make any payment in connection with any Proceeding to the extent the Indemnitee has otherwise actually received payment (under any insurance policy, the Charter, Company by-laws or otherwise) of the amounts otherwise indemnifiable hereunder. 

18. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors, assigns (including any direct or indirect successor by purchase, merger or consolidation or otherwise to all or substantially all of the business and/or assets of the Company), spouses, heirs, executors and personal and legal representatives. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as a director or officer of the Company or of any other entity at the Company’s request. In the event of his death, this agreement shall be enforceable by the Indemnitee’s legal representatives as fully as if the Indemnitee was alive.

19. SEVERABILITY; HEADINGS; PRONOUNS. The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within a single section, paragraph or sentence) is held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable in any respect; the validity and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired and shall remain enforceable to the fullest extent permitted by law; and to the fullest extent legally possible, the provisions of this Agreement shall be construed as to give effect to the intent of any provision held invalid, void, or otherwise unenforceable. The headings of the Sections of this Agreement are inserted for convenience only and shall not be deemed to constitute
part of this Agreement or to affect the construction thereof. The masculine pronoun wherever used in this Agreement includes the corresponding feminine pronoun. 

20. NOTICES. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) upon delivery if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) on the third business day after mailing if mailed by certified or registered mail with postage prepaid, and addressed as follows:  if to the Indemnitee, as shown after the Indemnitee’s signature below; and if to the Company, to c/o Global Ship Lease Services Limited, Millbank Business Centre, Millbank Tower, Fourth Floor, London SW1P 4QP, United Kingdom, or such other address as may have been furnished in writing to the Indemnitee by the Company or to the Company by the Indemnitee, as the case may be. 

21. EXCEPTIONS.  Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

(a)  Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 60 of the BCA, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board finds it to be appropriate;

 

 

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(b)  Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous;

(c)  Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) to the extent such expenses or liabilities have been paid directly to Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability insurance maintained by the Company; or

(d)  Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

22. GOVERNING LAW. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to contracts made and to be performed in such state without giving effect to the principles of conflicts of laws.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 

 

	
                         
 	
                         
 	
                         
 	
                        GLOBAL SHIP LEASE, INC.
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        

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                        Name: 
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
  Title: 
 

 

	
                         
 	
                         
 	
                         
 	
                        INDEMNITEE
 
	
                         
 	
                         
 	
       
 	
       
 	
                         

                          [Name & Address of Indemnitee]

						

 

 

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