Document:

Exhibit 10.116

 

 

NAVIG8 SHIPMANAGEMENT PTE LTD

 

MARINE PROJECT MANAGEMENT

 

AGREEMENT FOR

PLAN APPROVAL AND CONSTRUCTION SUPERVISION

OF TWO 300,000 DWT Class Crude Oil Carriers

 

· HHIC-PHIL INC.

 

HULL No’s. NTP0137 and NTP0138

 

FOR NAVIG8 CRUDE TANKERS INC.

 

Dated: 25 March 2014

 

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1.  PREAMBLE

2.  SUBJECT OF AGREEMENT

3.  DEFINITIONS

4.  BUILDING PROGRAMME

5.  THE SERVICES

6.  THE SITE TEAM

7.  SEATRIALS

8.  FEES, COSTS AND PAYMENT

9.  TERMINATION

10.  RIGHT TO SUBCONTRACT

11.  CONFIDENTIALITY

12.  RESPONSIBILITIES

13.  INSURANCE

14.  STAFF LOYALTY

15.  ASSIGNMENT BY THE OWNERS

16.  LABOR RESPONSIBILITY

17.  LAW AND ARBITRATION

18.  NOTICES

 

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1. PREAMBLE

 

This Agreement is made the 25th day of March 2014 (“the Agreement”).

 

Between:

 

1) NAVIG8 CRUDE TANKERS INC. a corporation incorporated and existing under the laws of the Marshall Islands with its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands (the “Owners”)

 

And

 

2) Navig8 Shipmanagement Pte Ltd, a corporation incorporated and existing under the laws of Singapore with its registered office at Three Temasek Avenue, #25-01 Centennial Tower, Singapore 039190 (“the Consultant”);

 

(each a “Party” and together the “Parties”).

 

Whereas:

 

a) the Owners intend to enter either directly or through wholly owned special purpose subsidiaries into shipbuilding contract(s) related to newbuilds with hull numbers NTP0137 and NTP0138 (the “Intended Shipbuilding Contract(s)”) with HHIC-PHIL INC. (“the Yard”) for the construction of two 300,000 DWT class crude oil carriers (“the Intended Vessels”);

 

b) the Owners may also enter either directly or through wholly owned special purpose subsidiaries into shipbuilding contracts with the Yard (the “Possible Future Shipbuilding Contract(s)”) for the construction of other crude oil carriers in the future (the “Possible Future Vessels”) (the Intended Shipbuilding Contract(s) and the Possible Future Building Contract(s) shall together be known as the “Shipbuilding Contract(s)” and each a “Shipbuilding Contract”, and the Intended Vessels and the Possible Future Vessels shall together be known as the “Vessels” and each a “Vessel”).

 

c) the Consultant is willing to provide advice and supervision services (“the Services” as further detailed in Clause 5 hereafter) for the construction of the Vessels; and

 

d) the Owners are willing to enter into an agreement with the Consultant for the Services, in order to secure an efficient and economic performance of the Yard’s technical obligations under the Shipbuilding Contract(s).

 

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Now, therefore, in consideration of the mutual covenants hereinafter detailed, it is agreed as follows:

 

2. SUBJECT OF AGREEMENT

 

The Owners hereby appoint the Consultant to carry out plan approval and supervise the construction of the Vessels by providing the Services and the Consultant accepts such appointment and undertakes to provide the Services in accordance with all reasonable directions, instructions, forms and methods of supervision and inspection that the Owners may issue from time to time and upon the terms and conditions herein provided.

 

3. DEFINITIONS

 

In this Agreement the following wording shall mean:

 

“Site Team” - The team in charge of the supervision of the construction and commissioning of the Vessels, as further set out in s. 5(6) below.

 

4. BUILDING PROGRAMME

 

The delivery of the last Intended Vessel is planned in December 2016.

 

5. THE SERVICES

 

The services to be provided by the Consultant shall cover all activities required for the construction supervision of the Vessels, i.e. Project Management, Plan Approval, Building Specification, Vessels’ Deliveries, Reporting and Documentation and provision of a Site Team, as further defined in s.5(1)-(6) below (together the “Services”). The provision of the Services shall start with the plan approval for hull no. H1355, and is estimated to last until the delivery of the last of any Possible Future Vessels (if appropriate), unless otherwise provided.

 

The Services shall comprise the following:

 

1. Project Management:

 

a.              The Project Manager shall appoint a Site Manager for the project to co-ordinate negotiations, carry out plan approval and guide the supervision team.

 

b.              All correspondence with Owners, the Yard and external companies (classification, equipment suppliers, etc.) shall be handled by the Project Manager or the Site Manager.

 

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2. Plan Approval:

 

Main tasks:

 

a.              Review and approval of the basic and detail design drawings and documentation for compliance with the technical specifications, rules, regulations and good shipbuilding practice; and

 

b.              Review and approval of equipment maker’s proposals and documentation.

 

3. Building Supervision:

 

Main tasks:

 

a.              Checking the Yard’s fabrication drawings for compliance with the approved drawings and documentation, applicable shipyard standards and good shipbuilding practice;

 

b.              Supervising the construction of the Vessels including installation of equipment at the Yard, to verify compliance with the technical specification, approved plans, applicable shipyard standards and good shipbuilding practice;

 

c.               Supervising the fabrication of the main subcontracted parts and equipment, attending the factory acceptance tests and trials at the premises of the subcontractors; and

 

d.              Supervising the commissioning of all equipment including testing, final system commissioning and sea trials, verifying the validity of the recorded data and the Vessels’ compliance with the technical specification, the approved drawings and the applicable shipbuilding standards.

 

4. Vessels’ Deliveries:

 

a.              Control of Vessels’ documentation and certification;

 

b.              Assisting the preparation of the database for the planned maintenance systems;

 

c.               Identification and organizing the supply (at Owners’ expense) of Owners’ initial spares and consumables;

 

d.              Co-ordination and supervision of Vessels’ crew-phase-in plans; and

 

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e.     Providing adequate technical support to the Vessels’ crews.

 

5. Reporting and Documentation:

 

a.              Holding meetings with Owners’ representatives on regular basis and as may be required; and

 

b.              Reporting to Owners regarding construction progress on a weekly progress report including any other relevant information (major non-conformities, delays, changes in equipment, construction or design, extra costs, etc.) and obtaining Owners’ consent where necessary.

 

6. The Site Team

 

The Site Team shall be composed of professionals with necessary skills and practical experience to cover the requirements for the Services to be provided. Prior to hiring of Site Team members the Consultant shall provide CV’s for the candidates and obtain the Owners’ consent.

 

As an indication the Site Team shall include a:

 

1. Project Manager

2. Site Manager

3. Machinery Inspector

4. Electrical Inspector

5. Paint Inspector

 

The actual composition of the Site Team from time to time shall be decided upon by the Contractor depending on the workload and construction stage.

 

Should the Owners have any reason to complain about any member of the Site Team, the Consultant shall take promptly investigate the complaint, and if it proves to be founded, shall make such change as the Consultant deems necessary.

 

7. SEATRIALS

 

1.     The Consultant shall attend the sea trials of the Vessels in the capacity of the Owners’ representative.

 

2.     The Consultant shall obtain such notice as is provided for in the Shipbuilding Contract(s) of the time and place of the sea trial of the Vessel(s) and notify such notice immediately to the Owner and to the classification society.

 

3. After the completion of the sea trial, the Consultant shall obtain the Builder’s notice in writing of the same within the number of days stated in the Shipbuilding Contract(s) and, after the Consultant’s verification of the result, immediately notify the result to the Owner

 

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with the Consultant’s opinion as to whether or not the Vessel(s) conform to the specifications and performance criteria in accordance with the Shipbuilding Contract(s).

 

8.     FEES, COSTS AND PAYMENT

 

Project Management Fee

 

The Owner shall pay the Consultant a fee of USD 500,000/ (US Dollars Five Hundred Thousand only) per Vessel (the “Project Management Fee”) including the Consultant’s costs and expenses in consideration for the provision of the Services.

 

For the Intended Vessels, Project Management Fees are payable against invoice in five installments, respectively as follows:

 

1/ 20% (or $100,000/-) for each Vessel within four business days after the date this Agreement is entered into.

 

2/ 10% (or $50,000/-) for each Vessel on or before one hundred and eighty days after the execution date of the relevant Shipbuilding Contract.

 

3/ 10% (or $50,000/-) for each Vessel within five business days of receipt by the Owner of a notice from the Yard together with a certificate issued by the classification society confirming that the steel cutting for the Vessel has commenced.

 

4/ 10% (or $50,000/-) for each Vessel within four business days of receipt by the Owner of a notice from the Yard together with a certificate issued by the classification society confirming that keel laying for the first block of the Vessel has been completed.

 

5/ 50% (or $250,000/-) for each Vessel shall be paid upon Delivery of the Vessel.

 

For any Possible Future Vessels, the Project Management Fee will be payable against invoice in instalments in the same proportions as set out for payment of the contract price for the Vessel in the relevant Possible Future Shipbuilding Contract between the Owner and the Yard, and will be payable on the same dates as such contract price instalments under the Possible Future Shipbuilding Contracts.

 

Payment dates may be adapted in case of changes of the building program so long as such changes are agreed by both Parties in writing.

 

9. TERMINATION

 

Owner’s Default

 

The Consultant shall be entitled to terminate this Agreement with immediate effect by notice in writing if any money payable by the Owners under this Agreement has not

 

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been received in the Consultant’s nominated account within 15 days of receipt by the Owners of Charterers’ invoice in relation to the same.

 

Consultant’s default

 

If the Consultant fails to meet his material obligations under this Agreement for any reason within the reasonable control of the Consultant, the Owners may give notice to the Consultant of the default, requiring him to remedy the default as soon as reasonably practicable. In the event that the Consultant fails to remedy the default within a reasonable time to the reasonable satisfaction of the Owners, the Owners shall be entitled to terminate the Agreement with immediate effect by notice in writing. Such termination shall not affect the Owners’ liability to pay the Consultants any amounts due to Consultants but unpaid at the time of termination, and Owners shall further make a reasonable pro rata payment for services performed since the date of the last installment.

 

Extraordinary Termination

 

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 if it suspends payment, ceases to carry on business or makes any special arrangement or composition with its creditors.

 

The termination of this Agreement shall be without prejudice to all rights accrued due between the parties prior to the date of termination unless otherwise provided in this Agreement.

 

10. RIGHT TO SUBCONTRACT

 

The Consultant shall have the right to sub-contract any of his obligations hereunder provided that the prior written consent of the Owners, which shall not be unreasonably withheld, is obtained. In the event of such a sub-contract, the Consultant shall remain fully liable for the due performance of their obligations under this Agreement.

 

11. CONFIDENTIALITY

 

Save for the purpose of enforcing or carrying out as may be necessary the rights or obligations of the Consultant hereunder, both Parties agree to maintain and to use all reasonable endeavors to procure that their officers, employees and sub-contractors’ officers and employees maintain confidentiality and secrecy in respect of the terms of this Agreement and all information relating to each Party’s business received by the other Party directly or indirectly pursuant to this Agreement.

 

12. RESPONSIBILITIES

 

Force Majeure

 

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Neither the Owners nor the Consultant shall be under any liability for any failure to perform any of their obligations hereunder by reason of any cause whatsoever of any nature or kind beyond their reasonable control.

 

Liability to Owners

 

Without prejudice to the above paragraph (Force Majeure), the Consultant 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 Vessels) and howsoever arising in the course of performance of this Agreement UNLESS same is proved to have resulted solely from the negligence, gross negligence or willful default of the Consultant or his employees, or agents or subcontractors employed by them in connection with the Vessels, in which case (save where loss, damage, delay or expense has resulted from the Consultant’s 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 Consultant’s liability for each incident or series of incidents giving rise to a claim or claims shall never exceed a total of USD 250,000.

 

Indemnity

 

Except to the extent that the Consultant would be liable under the above paragraph (liability to Owners), the Owners hereby undertake to keep the Consultant and his employees, agents and subcontractors 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 this 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 Consultant may suffer or incur (either directly or indirectly) in the course of the performance of this Agreement.

 

“Himalaya”

 

It is hereby expressly agreed that no employee or agent of the Consultant (including every subcontractor from time to time employed by them) 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 part 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, every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defense and immunity of whatsoever nature applicable to the Consultant or to which the Consultant is entitled hereunder shall also be available and shall extend to protect every such employee or agent of the Consultant acting as aforesaid.

 

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13. INSURANCE

 

The Owners will endeavor to obtain a waiver of subrogation in favour of the Consultant, its servants, agents and employees from the insurers in respect of the Builders Risks Insurances arranged under the Shipbuilding Contract(s).

 

14. STAFF LOYALTY

 

The Owners shall not and shall procure that their parent, subsidiary and associates shall not, during the course of this Agreement or for a period of six months following termination of this Agreement directly or indirectly offer any employment to any employee of the Consultant and the members of the Site Team engaged in providing Services or directly or indirectly induce or solicit any such person to take up employment with the Owners or any associated or affiliated company or use the services of any such person either independently or via a third party.

 

15. ASSIGNMENT BY THE OWNERS

 

1.   The Owners shall be entitled to assign all of its rights and obligations under this Agreement to any affiliate of the Owners to which assignment the Consultant hereby consents, provided that such assignment shall not otherwise alter the terms of this Agreement.

 

2.   If the Owners assign, novate or otherwise transfer the Building Contracts or any of them to a third party this Agreement may, in the option of the Owners, be novated to take effect, from the date of the exercise by the Owners of their option, as a contract between the Consultant and the third party in relation to the relevant Vessel or Vessels and the Consultant agrees that it will upon the Owners’ request enter into a novation agreement in such form as the Owners may reasonably require, with the Owners and the third party.

 

16. LABOR RESPONSIBILITY

 

The Consultant shall render the Services that are the subject matter of this Agreement with its own employees or that of its subcontractors. Under no circumstances will the Owners be considered as employer or substitute employer of the workers or personnel employed or retained by the Consultant (either directly or indirectly through contractors or subcontractors) for the rendering of the Services. The Consultant shall defend, indemnify and hold harmless the Owners, its affiliates and permitted assignees, their officers, employees, agents and representatives from and against all claims, suits and liabilities (including but not limited to cost of litigation and reasonable attorney’s fees) arising, directly or indirectly, in connection with (i) any and all obligations that for any reason may exist or arise in connection with the workers or personnel (including without limitation obligations arising from laws and other systems on labor and social security), or the contractors or subcontractors, engaged by Consultant, their officers, employees. agents or representatives, in the rendering of the Services, or (ii) claims or suits by any governmental authority for any actual or asserted failure of Consultant, its contractors or

 

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subcontractors to comply with any law, ordinance, regulation rule or order of any governmental or judicial body in the rendering of the Services.

 

17. LAW AND ARBITRATION

 

This Agreement and any non-contractual obligations arising out of or in connection to is shall be governed by and construed in accordance with English law, disputes to be referred to arbitration in London under the LMAA Terms current at the time proceedings are commenced. The reference shall be to three arbitrators. Where the total value of any claims and counterclaim does not exceed USD 100,000 the LMAA Small Claims Procedure shall apply.

 

18. NOTICES

 

Any notice to be given by either party to the other party shall be in writing and may be sent by registered or recorded mail or by personal service.

 

The address of the Parties for service of such communication shall be as follows:

 

For the Owners:

 

c/o President, Navig8 Crude Tankers Inc, One Gorham Island Suite 101, Westport, CT 06880, USA

 

For the Consultant:

 

c/o Managing Director, Navig8 Shipmanagement Pte Ltd, Three Temasek Avenue, #25-01 Centennial Tower, Singapore 039190

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their authorized representatives on the day and year first above written.

 

 

	
By:
    	
/s/ [ILLEGIBLE]
    	
 
    	
By:
    	
/s/ Prashaant Mirchandani
    
	
 
    	
 
    	
 
    	
 
    	
Prashaant Mirchandani
    
	
 
    	
 
    	
 
    	
 
    	
Managing Director
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Secretary
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
For NAVIG8 CRUDE TANKERS Inc.
    	
 
    	
For Navig8 Shipmanagement Pte Ltd.
    

 

12Exhibit 10.117

 

AGENCY AGREEMENT

 

THIS AGENCY AGREEMENT (this “Agreement”) is made and entered into as of November 30, 2012, by and between UNIQUE TANKERS LLC, a limited liability company organized and existing under the laws of the Republic of the Marshall Islands (the “Company” or the “Owners”) and UNIPEC UK COMPANY LIMITED, a U.K. company (“Unipec” or the “Commercial Manager”).

 

WHEREAS, the Company has been formed for the purpose of establishing and operating a pool (the “Pool”) of tanker vessels (each a “Vessel”) to be employed in the worldwide carriage and/or storage of crude oil, fuel oil or other mutually agreed products.

 

WHEREAS, the Company wishes to appoint Unipec to act as the exclusive commercial manager of Vessels employed in the Pool and listed on Schedule A (as such Schedule may be adjusted by the Company, from time to time, to give effect to the admission of additional Vessels or the removal of existing Vessels to/from the Pool) (the “Pool Vessels”), including Pool Vessels owned, demise chartered or time chartered by General Maritime Corporation and its affiliates (collectively, the “Genmar Vessels”), in accordance with the terms and conditions of that certain Baltic and International Maritime Council (BIMCO) Standard Ship Management Agreement Code Name: “SHIPMAN 2009”, a copy of which is attached hereto as Exhibit A (the “Management Agreement”), as supplemented by this Agreement, and Unipec wishes to accept such appointment.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual premises and covenants herein set forth, the parties hereto agree as follows:

 

1.             Appointment. Commencing from the date hereof and unless and until terminated pursuant to the provisions of this Agreement, the Company hereby appoints Unipec to be, and Unipec hereby accepts its appointment by the Company as, the exclusive commercial manager for the Pool Vessels upon and subject to the terms and conditions of this Agreement and the Management Agreement.

 

2.             Authority; Pool Services. Subject to the restrictions set forth in Section 4, Unipec, acting as an agent for the Company, shall have the obligations and the exclusive authority to perform and conduct, in accordance with the Company’s instructions, all aspect relative to the commercial management and operation of the Pool Vessels with the obligation, right power and authority to do all things which, in its judgment, are necessary, proper or desirable to perform its duties and obligations as commercial manager of the Pool Vessels under this Agreement and the Management Agreement. In connection with the foregoing, and in addition to the obligations under the Management Agreement, the Commercial Manager agrees with the Company to:

 

(a)                                 market and promote the Pool to third parties, as agreed with the Company;

 

(b)                                 provide chartering services in accordance with the Management Agreement to the Pool Vessels as to maximize overall Pool earnings; and

 

(c)                                  acquire, install and utilize a shipping software package from Veson which the Company acknowledge they had have to opportunity to review and hereby

 

 

confirm that it is acceptable to them and during the term of this Agreement only, grant to the Company and/or its designees access to pool accounts, voyage calculation, charterparties and related data via an online system and shall permit the Company and/or its auditors or other representatives to inspect and verify the records and financial and operational data relating to the Pool (including, without limitation, to verify the performance of any Pool Vessel). For the avoidance of doubt, the rights granted to the Company under this sub-paragraph extend to pool business only and not any other business of the Commercial Manager.

 

3.             Standard of Performance. Unipec hereby undertakes at all times during its appointment as the Company’s commercial manager to use its best endeavors to perform obligations hereunder and under the Management Agreement punctually, diligently and in accordance with sound commercial practice and to protect and promote the interests of the Company in all matters directly or indirectly relating to all commercial matters contemplated hereunder and under the Management Agreement.

 

4.             Restrictions on the Commercial Manager. The Commercial Manager shall not, without the prior written consent of the Pool Committee:

 

(a)                                 agree to any settlement of any claim or litigation;

 

(b)                                 borrow any money for or on behalf of the Company;

 

(c)                                  enter into any agreement or arrangement to sub-contract, assign or transfer any of its obligations, duties, powers, discretion and/or rights hereunder or under the Management Agreement to any person or entity save as may be permitted by the Management Agreement;

 

(d)                                 decide to lay up a Pool Vessel or discontinue employment for more than ten (10) consecutive days excluding storage or waiting for cargo; or

 

(e)                                  employ a Pool Vessel or suffer her employment in any trade or business which is forbidden by the law of any country to which the Pool Vessel may sail or country whose laws govern the activities of the relevant Pool Vessel or suffer her employment in any trade or business which is otherwise illicit or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to condemnation, destruction, seizure, confiscation or penalty.

 

5.             Pool Committee. During the term of this Agreement, Unipec shall have the right to appoint upon written notice to the Company one (1) member of the committee (the “Pool Committee”) referred to in Article IV of the Limited Liability Company Agreement of the Company (attached hereto as Exhibit B) (the “LLC Agreement”).

 

6.             Agency Fee.

 

The Company will pay the Commercial Manager in respect of the services performed under this Agreement and the Management Agreement an agency fee (the “Agency Fee”) which shall be:

 

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(a)                                 for Pool Vessel (other than a Genmar Vessel), the fee agreed between the Company and the ship owner which shall not be less than one and one quarter percent (1.25%) of the gross freight, demurrage, deadfreight, miscellaneous revenues and charter hire obtained by each Pool Vessel (other than a Genmar Vessel) managed by the Commercial Manager calculated per fixture; or

 

(b)                                 For Genmar Vessels:

 

(i)                                     one and one quarter percent (1.25%) of the gross freight, demurrage, deadfreight, miscellaneous revenues and charter hire obtained by each Genmar Vessel if the Commercial Manager is managing less than twenty-five (25) Genmar Vessels;

 

(ii)                                  one and one fifteenth percent (1.15%) of the gross freight, demurrage, dead freight, miscellaneous revenues and charter hire obtained by each Genmar Vessel if the Commercial Manager is managing more than twenty-four (24) but less than forty (40) Genmar Vessels; or

 

(iii)                               one percent (1.00%) of the gross freight, demurrage, dead freight,
 miscellaneous revenues and charter hire obtained by each Genmar Vessel if the Commercial Manager is managing more than forty (40) Genmar Vessels;

 

less an amount equal to two hundred U.S. Dollars ($200) per day per Genmar Vessel managed by the Commercial Manager; provided, however, that in no event the Agency Fee payable under this Section 6(b) shall be less than one percent (1.00%) of the gross freight, demurrage, dead freight, miscellaneous revenues and charter hire obtained by each Genmar Vessel.

 

The sliding Agency Fee structure and mechanism is applicable and basis PER ship type ( Suezmax or VLCC) and the reduction is only relevant to ships in that fleet (i.e. the 1.15% discount would be basis more than 24 VLCC and the reduction would apply for the Genmar VLCCs only.

 

The Commercial Manager shall invoice the Company in respect of the Agency Fees and any other amounts due quarterly in arrears in respect of all completed voyages. The Company will pay invoices in full, without deduction, set-off or counterclaim to the bank account nominated by the Commercial Manager within ten (10) days of receipt. Late payment will be subject to interest at the rate stated in Part I of the Management Agreement.

 

The Company shall make all payments to be made by it under this Agreement or the Management Agreement without any deduction or withholding for or on account of tax (“Tax Deduction”), unless a Tax Deduction is required by law.

 

If a Tax Deduction is required by law, the amount of the payment due from the Company shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

 

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All sums payable under this Agreement and Management Agreement which (in whole or part) constitute consideration for any supply for value added tax (“VAT”) purposes are deemed to be exclusive of any VAT or other applicable sales tax, which shall be added to the sum in question. A VAT invoice shall be provided against any payment.

 

Where the Agreement or Management Agreement requires the Company to reimburse or indemnify the Commercial Manager for any cost or expense, the Company shall reimburse or indemnify (as the case may be) the Commercial Manager for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that the Commercial Manager reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

 

7.             Termination.

 

(a)                                 This Agreement shall terminate upon the earlier of:

 

(i)                                     termination of all of the Management Agreements; or

 

(ii)                                  the Commercial Manager or the Company giving to the other not less than ninety (90) days’ prior written notice to terminate this Agreement, but notice not to be given prior to end of 12th months from date of this Agreement.

 

(b)                                 Except for Sections which are expressly stated in this Agreement to survive the termination of this Agreement, this Agreement shall, effective as at the date of termination pursuant to the provisions of this Section 7, cease to bind the Company and the Commercial Manager.

 

(c)                                  Upon termination all Vessels are to have fully performed any Existing Commitments (which is defined as any charter in the course of performance of for which an agreement to charter has been entered into as of the date on which notice to terminate has been given). Where any Vessel(s) are subject to Existing Commitments this Agreement and the Management Agreement will not terminate with respect to such Vessel(s) until such Existing Commitments are fully performed.

 

(d)                                 Where the Vessel is not at a mutually convenient port or place on the expiry of such period, this Agreement shall terminate on the subsequent arrival of the Vessel at the next mutually convenient DISCHARGE port or place. For the avoidance of doubt all costs are for the Owners account.

 

8.             Competition; Additional Vessels.

 

(a)                                 The Commercial Manager shall not, without giving the Company first refusal, manage Vessels other than the Pool Vessels contemplated under this Agreement (collectively, “Other Vessels”) and shall not discriminate in favor of the Other Vessels, including, without limitation, (i) shall perform its obligations under this agreement and the Managements Agreements in respect of the Pool Vessels on at

 

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least as favorable basis as the Other Vessels and its duties without prejudice or disadvantage to the Pool Vessels and without preference or advantage in favor of the Other Vessels and (ii) it shall ensure that the Pool Vessels are provided with equal opportunity and are not discriminated against vis-à-vis the Other Vessels when the Commercial Manager becomes aware with respect to any potential charters of Vessels. For the avoidance of doubt, nothing in this Agreement or elsewhere shall prevent the Commercial Manager from undertatiag its regular business activities which includes the chartering of vessels from third parties.

 

(b)                                 The Commercial Manager acknowledges and agrees that it is the intention of the Company to strengthen the marketing power and “critical mass” of the Pool by adding more vessels to the Pool and that accordingly, the Company may from time to time, admit additional vessels to the Pool and substitute new vessels for existing Pool Vessels in the Pool, in each case with the prior consent of the Commercial Manager, or, subject to clause 7(c) withdraw existing Pool Vessels from the Pool.

 

9.             Liability and Indemnity.

 

(a)                                 The Commercial Manager shall be under no liability whatsoever to the owners of any Pool Vessel 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 Pool Vessel) and howsoever arising in the course of performance of this Agreement UNLESS same is proved to have resulted solely from the gross negligence or wilful default of the Commercial Manager or its employees or agents, or sub-contractors employed by it in connection with the Pool Vessel, in which case (save where loss, damage, delay or expense has resulted from the Commercial Manager’s 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 Commercial Manager’s liability for each incident or series of incidents giving rise to a claim or claims shall never exceed a total of ten (10) times the annual Agency Fee in respect of the Pool Vessel in question paid during the previous twelve (12) months.

 

(b)                                 Except to the extent and solely for the amount therein set out that the Commercial Manager would be liable under clause 9(a), the Company hereby undertake to keep the Commercial Manager and its 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 this Agreement, and against and in respect of all costs, loss, damages and expenses (including legal costs and expenses on a full indemnity basis) which the Commercial Manager may suffer or incur (either directly or indirectly) in the course of the performance of this Agreement.

 

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10.          Compliance with Laws.

 

(a)                                 Nothing in the Agreement is intended, and nothing herein should be interpreted or construed, to induce or require either the Company or the Commercial Manager to act or refrain from acting (or agreeing to act or refrain) in any manner which is inconsistent with, penalised or prohibited under any laws, regulations or decrees to which they are subject.

 

(b)                                 The Company and the Commercial Manager each represent, warrant and undertake to the other that they have at all times, and will continue to comply with all applicable laws, rules, regulations, resolutions, decrees and/or official government orders of the Pool Vessel’s flag states, places where the Pool Vessels trade, the United Kingdom, United States of America, the United Nations and the European Union, and any other jurisdiction to which either is subject, relating to anti-bribery, anti-corruption and anti-money laundering, including without limitation, (i) the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.S. PATRIOT Act, the Currency and Foreign Transactions Reporting Act of 1970, as amended, the Money Laundering Control Act, the Bank Secrecy Act and the USA PATRIOT Act; (ii) the U.K. Anti-Terrorism, Crime and Security Act 2001, the Money Laundering Regulation 1993, the Proceeds of Crime Act 2002 and the U.K. Bribery Act 2010; (iii) the Global Programme against Money-Laundering, Proceeds of Crime and the Financing of Terrorism, Council Directive 2005/60/EC, and Directive 91/308/EEC; and (iv) the applicable country legislation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, and have conducted their businesses in compliance with all such applicable laws and have instituted and maintain and will continue to maintain policies and procedures designed to promote and achieve compliance with such laws and with the representations and warranties contained herein.

 

(c)                                  The Company and the Commercial Manager each represent, warrant and undertake to the other that they have not nor will they in the future, directly or indirectly, take any action that would result in a violation of the anti-bribery or anti-money laundering legislation of any government or jurisdiction to which it is subject, including without limitation, the laws set forth in subsection above; such actions to include, without limitation, any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any “government official” (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to influence official action or secure an improper advantage.

 

(d)                                 Each party represents and warrants that it is not the subject of sanctions imposed by or under, and the terms of this Agreement will not, directly or indirectly, violate the provisions of (i) any resolutions issued by the United Nations or

 

6

 

European Union with respect to economic transactions entered into by Member States, including, without limitation, any United Nations Security Council Resolutions or European Commission Council Decisions, (ii) the law of the United Kingdom including, without limitation, any sanctions administered or enforced by Her Majesty’s Treasury, or (iii) any United States executive order, law, statute or regulation enacted to prohibit or limit economic transactions with foreign Persons including, without limitation, the Foreign Assets Control Regulations of the United States of America (Title 31, Code of Federal Regulations, Chapter V, Part 500, as amended), any of the provisions of the Cuban Assets Control Regulations of the United States of America (Title 31, Code of Federal Regulations, Chapter V, Part 515, as amended), any of the provisions of the Iranian Transaction Regulations of the United States of America (Title 31, Code of Federal Regulations, Chapter V, Part 560, as amended), any of the provisions of the Iran Sanctions Act, as amended by, among others, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 and the Iran Threat Reduction and Syria Human Rights Act of 2012, and the rules and regulations thereunder, any of the provisions of the Iranian Financial Sanctions Regulations (Title 31, Code of Federal Regulations, Chapter V, Part 561), or any of the provisions of the Regulations of the United States of America Governing Transactions in Foreign Shipping of Merchandise (Title 31, Code of Federal Regulations, Chapter V, Part 505, as amended).

 

11.          Law and Jurisdiction.

 

This Agreement is governed by and shall be construed in accordance with the laws of England without regard to conflicts of laws principles.

 

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 or re-enactment thereof save to the extent necessary to give effect to the provisions of this Section 11.

 

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.

 

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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 fifty thousand U.S. Dollars ($50,000) (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.

 

12.          Confidentiality. Any information furnished pursuant to this Agreement by, or on behalf of, either party hereto, to the other party hereto shell be kept confidential by the recipient and each party hereby agrees not to publish or disclose such information provided always that the provisions of this Section 12 shall not apply:

 

(a)                                 to any information already known to the recipient otherwise than as a result of entering into this Agreement;

 

(b)                                 to any information which is or becomes public knowledge otherwise than as a result of the conduct of any party hereto or which is disclosed pursuant to subpoena or other legal process;

 

(c)                                  to any extent that the recipient is required to disclose the same pursuant to any law or order of any court;

 

(d)                                 to the disclosure of the same by any party hereto to its legal advisers, consultants and accountants in each case for any purposes connected with this Agreement; or

 

(e)                                  in the case of the Commercial Manager, to the extent required to enable the
 Commercial Manager to discharge its obligations and duties under this Agreement.

 

The provisions of this Section 12 shall survive the termination of this Agreement.

 

13.          Notices.

 

Any notice or other information required or permitted to be given by either party hereto under the provisions of this Agreement shall be addressed as follows:

 

(a)                                 If to the Company to:

 

	
Address:
    	
 
    	
c/o   General Maritime Corp.
    
	
 
    	
 
    	
299   Park Avenue
    
	
 
    	
 
    	
2nd Floor
    
	
 
    	
 
    	
New   York, NY 10171
    
	
Fax   No:
    	
 
    	
+1   212 763 5603
    
	
Attention:
    	
 
    	
Sean   Bradley
    

 

8

 

(b)                                 If to the Commercial Manager to:

 

	
Address:
    	
 
    	
Lawn   House
    
	
 
    	
 
    	
74   Shepherd’s Bush Green
    
	
 
    	
 
    	
London   W12 8QE
    
	
Fax   No:
    	
 
    	
+44   20 8811 8581
    
	
Attention:
    	
 
    	
Matthew   Lambert
    

 

All such notices shall be sent by prepaid courier or by facsimile transmission and shall be written in the English language.

 

Any communication or notice to be made or delivered by one party to another pursuant to this Agreement shall:

 

(i)                                     if sent by facsimile transmission, be deemed to have been received if sent between 9.00 am and 5.00 pm (local time in the place to which it is sent) on a working day in that place, when transmission has been completed or, if sent at any other time, at 9.00 am (local time in the place to which it is sent) on the next working day in that place provided in each case that the party sending the facsimile transmission shall have received a transmission receipt; and

 

(ii)                                  if sent by courier, be deemed to have been delivered three working days (in the place to which it is sent) after being delivered into the custody of a courier in an envelope addressed to it at its address (determined in accordance with this Section 13),

 

Either party may change its address for notices at any time by written notice to the other party in accordance with this provision.

 

14.          Provisions Severable and Paramount.

 

(a)                                 In the event that in any legal proceedings before a competent tribunal, board or commission, in any jurisdiction, it is determined that any section or part thereof or part of this Agreement is invalid or unenforceable, such section or part thereof or part of this Agreement shall be deemed to be severed from the remainder of this Agreement for purposes only of the legal proceedings in question, and this Agreement shall otherwise remain in full force and effect.

 

(b)                                 Save in respect of Exhibit A, in the event of any inconsistency or contradiction between this Agreement and any Exhibit, this Agreement shall prevail.

 

15.          Successors. This Agreement may not be assigned or transferred by any party, in whole or in part, without the prior written consent of the other party, which consent may be granted or withheld at the sole discretion of such party. This Agreement shall be binding upon and ensure to be the benefit of each of the parties and its respective successors, executors, administrators and permitted assigns.

 

9

 

16.          Conflict.  In the event of a conflict between this Agreement and the Management Agreement, this Agreement shall prevail.

 

17.          Waivers.  Any waiver by either party of any breach of this Agreement by the other party shall only be effective if evidenced by an instrument in writing duly executed by such party and shall not be construed as a continuing waiver of or consent to any subsequent breach of this Agreement by the other party.

 

18.          Amendments.  No variation of or addition to this Agreement shall have any force and effect unless in writing and signed by each party to this Agreement.

 

19.          Counterparts.  This Agreement may be executed in several counterparts, and all counterparts so executed shall constitute one agreement, binding on all of the parties hereto, notwithstanding that all of the parties are not signatory to the original or the same counterpart.

 

[Signature Page Follows]

 

10

 

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

 

	
UNIQUE   TANKERS LLC
    	
 
    	
UNIPEC   UK COMPANY LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Sean Bradley
    	
 
    	
By:
    	
/s/   Zheng Wang
    
	
Name:   Sean Bradley
    	
 
    	
Name:   Zheng Wang
    
	
Title:   Director
    	
 
    	
Title:   Deputy GM
    
					

 

 

Schedule A

 

POOL VESSELS

 

	
Genmar Vessels
    	
 
    	
Other Pool Vessels
    
	
GENMAR ARGUS
    	
 
    	
 
    
	
GENMAR GEORGE T
    	
 
    	
 
    
	
GENMAR HOPE
    	
 
    	
 
    
	
GENMAR HORN
    	
 
    	
 
    
	
GENMAR KARA G
    	
 
    	
 
    
	
GENMAR MANIATE
    	
 
    	
 
    
	
GENMAR ORION
    	
 
    	
 
    
	
GENMAR PHOENIX
    	
 
    	
 
    
	
GENMAR SPARTIATE
    	
 
    	
 
    
	
GENMAR SPYRIDON
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
GENMAR ATLAS
    	
 
    	
 
    
	
GENMAR HERCULES
    	
 
    	
 
    
	
GENMAR POSEIDON
    	
 
    	
 
    
	
GENMAR ULYSSES
    	
 
    	
 
    
	
GENMAR VICTORY
    	
 
    	
 
    
	
GENMAR VISION
    	
 
    	
 
    
	
GENMAR ZEUS
    	
 
    	
 
    

 

 

Exhibit A

 

MANAGEMENT AGREEMENT

 

[Attached]

 

 

Exhibit B

 

LLC AGREEMENT

 

[Attached]

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