Document:

Exhibit 4.8

      

      

      

      

      

      

      

      

      

      COMMON STOCK PURCHASE AGREEMENT

          

          

          by and between

          

          

          NORDIC AMERICAN OFFSHORE LTD.

      and

      AHTS HOLDCO LIMITED

      and

          

          

          SCORPIO OFFSHORE HOLDING INC.

      

      

      

      

      ___ April 2019

      

      

      

      

      

      

      
        
          

      

      STOCK PURCHASE AGREEMENT

      

      

      This STOCK PURCHASE AGREEMENT (the “Agreement”)

          dated ___ April, 2019 effective as of _________________________, 2019 by and between NORDIC AMERICAN OFFSHORE LTD., a company incorporated in Bermuda (the “Company”), AHTS HOLDCO LIMITED, a company incorporated
          in Bermuda (the “Company Subsidiary”) and SCORPIO OFFSHORE HOLDING INC., a corporation incorporated in the Marshall Islands as purchaser (the “Purchaser”) for the purchase and sale of shares of common stock, par value $0.01 per share, of the Company (the “Common

              Stock”).  The Company, the Company Subsidiary and the Purchaser shall collectively be referred to herein as the “Parties”.

      

      

      WHEREAS, the Purchaser’s wholly-owned subsidiary set forth in Schedule A hereof (the “Owning Company”) owns one anchor handling tug supplier vessel as set out next to the name of the Owning Company in Schedule A (the “Vessel”); and

      

      

      WHEREAS, the Purchaser has agreed to sell to the Company Subsidiary, being a wholly-owned subsidiary of the Company,
          100% of the authorized, issued and outstanding share capital of the Owning Company in exchange for the Consideration (as defined below).

      

      

      NOW, THEREFORE, in consideration of the premises and the mutual covenants and conditions herein contained, the Parties
          hereto agree as follows:

      

      

      ARTICLE I

      Obligation to Deliver Shares and Certain Definitions

      

      

      Section 1.1     Certain Definitions. 

          As used in this Agreement, the terms set forth below shall have the following respective meanings:

      

      

      “Closing Date” shall mean
          _____ April 2019.

      

      

      “Closing Date VWAP” shall
          mean the average of the daily VWAP of the Common Stock over the thirty (30) Trading Days immediately preceding 4 April 2019.

      

      

      “Consideration” shall mean
          the number of shares of Common Stock calculated by using the Closing Date VWAP equal to the SPV Value.

      

      

      “Deed of Amendment” shall
          mean the deed of amendment dated ___ April 2019 to the DVB Loan Agreement, made amongst inter alios DVB Bank as facility agent and security agent, Scorpio Baron Shipping Company Limited and Scorpio Brilliance Shipping Company Limited as borrowers
          under the DVB Loan Agreement, the Purchaser and the Company Subsidiary.

      

      

      “DVB Bank” shall mean DVB
          Bank SE Nordic Branch.

      

      

      

      

      “DVB Loan Agreement” shall
          mean the US$9,000,000 facility agreement dated 26 September 2017 as amended and supplemented from time to time and as amended and supplemented by the DVB Deed of Amendment and made amongst inter alios (i) Scorpio Baron Shipping Company Limited
          and Scorpio Brilliance Shipping Company Limited as joint and several borrowers, (ii) the banks and financial institutions listed in schedule 1 thereto as lenders and (iii) DVB Bank as facility agent and security agent.

      

      

      “Reversal” shall mean:

      
        
          	

                	(a)	
                  subject to compliance with the provisions of the Companies Act 1981 of Bermuda, the buy back by the Company from the Purchaser of the number of shares of
                      Common Stock in the Company transferred on the Closing Date; and

                

        

      

      
        
          	

                	(b)	
                  the sale and transfer of the 100% of the authorized, issued and outstanding share capital of the Owning Company by the Company Subsidiary to the Purchaser.

                

        

      

      

      

      “Reversal Event” shall mean the
          occurrence of any of the events set out in clause 7.1(b) of the Deed of Amendment.

      

      

      “SPV Value” shall mean the value
          attributed to the assets of Owning Company less the value of the outstanding debt under the DVB Loan Agreement plus all the receivables less all the payables, as set out in Schedule A hereto.

      

      

      “Trading Day” shall mean any day
          on which trading in shares of Common Stock actually occurs on the Trading Market.

      

      

      “Trading Market” means the
          following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the New York Stock Exchange, the NYSE MKT, the NYSE Arca, the NASDAQ Capital Market, the NASDAQ Global Market or the NASDAQ Global
          Select Market (or any successors to any of the foregoing), whichever is at the time the principal trading exchange or market for the Common Stock.

      

      

      “VWAP”
          shall mean the daily volume weighted average price (based on a Trading Day from 9:30 a.m. to 4:00 p.m. (New York time)) of the Common Stock on the Trading Market as reported by Bloomberg Financial L.P. using the AQR function.

      

      

      ARTICLE II

          Purchase and Sale of Common Stock

      Section 2.1     Purchase and Sale of
              Common Stock.  Subject to the terms and conditions herein, on the Closing Date and in consideration of the transfer by the Purchaser of all of the authorized, issued and outstanding share capital of the Owning Company to the
          Company Subsidiary, the Company shall issue and sell to the Purchaser, and the Purchaser shall purchase from the Company, the number of shares of Common Stock (the respective number of shares to be purchased by the Purchaser is referred to herein
          as the “Shares”) equal to (i)  the SPV Value divided by (ii)  94% of Closing Date VWAP, rounded up the nearest whole share.

      

      

      Section 2.2     Delivery of Shares. 

          The Company shall deliver all Shares on the Closing Date to the Purchaser pursuant to this Agreement by book entry notation.

      

      

      Section 2.3     Closing. 
          Subject to the terms and conditions herein, the Company agrees to issue and sell to the Purchaser and the Purchaser agrees to purchase from the Company, the Shares.  The purchase and sale of the Shares shall take place on the Closing Date at
          18:00 pm Central European Time, or such other time and place as the Parties may mutually agree.

      

      

      Section 2.4     Consideration. 

          The sufficiency of such consideration for the sale and purchase of the Shares is hereby acknowledged by the Parties.  The Parties agree that the Company and the Purchaser are executing and delivering this Agreement in accordance with and in
          reliance upon the exemption from registration under Section 5 of the U.S. Securities Act of 1933, as amended (the “Securities Act”) afforded by Section
          4(a)(2) of the Securities Act.

      

      

      Section 2.5     Condition to the
              Purchase and Sale of Common Stock.  The Owning Company shall be acquired by the Company Subsidiary free of any debts, other than as described in Schedule B of this Agreement, if applicable.

      
        
          

      

      

      

      

      

      

      

      ARTICLE III

          Representations and Warranties

      Section 3.1     Representations and
              Warranties of the Company and the Company Subsidiary.  The Company and the Company Subsidiary, as applicable, hereby represent and warrant to the Purchaser, as of the date of this Agreement and the Closing Date, as follows:

      

      

      (a)      Organization,

              Authorization, Good Standing and Power.  Each of the Company and the Company Subsidiary are duly incorporated or organized, validly existing and in good standing under the laws of Bermuda and has the requisite corporate power and
          authority to enter into and perform its obligations under this Agreement and, in the case of the Company, to issue and sell the Shares in accordance with the terms hereof.  The execution, delivery and performance of this Agreement by each of the
          Company and the Company Subsidiary and the consummation by them of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action, and no further consent or authorization of the Company and the
          Company Subsidiary or their board of directors or stockholders is required.  This Agreement has been duly executed by the Company and the Company Subsidiary and when delivered by the Company and the Company Subsidiary in accordance with the terms
          hereof, this Agreement will constitute the legal, valid and binding obligations of the Company and the Company Subsidiary, enforceable against the Company and the Company Subsidiary in accordance with its terms, except to the extent that the
          enforceability thereof may be limited by: (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar laws from time to time affecting generally the enforcement of creditors’ rights and remedies; and (ii)
          general principles of equity, including principles of reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in equity or at law).

      

      

      (b)      Good
              Standing.  The Company and its subsidiaries are duly qualified or licensed to transact business and are in good standing in all jurisdictions where the ownership or operation of their respective assets and properties or the conduct
          of their respective businesses requires such qualification, except to the extent that the failure to be so qualified or licensed or be in good standing would not materially affect the Company or its subsidiaries, taken as a whole.

      

      

      (c)      Consents.  All corporate and other action, including the sending of all notices, filings and governmental or other consents and authorities for the Company and the Company Subsidiary to enter into and perform their
          obligations hereunder have been taken or obtained and, as of the date hereof, no further corporate or other action or governmental or other official consents or authorities are necessary for the performance by them of their obligations hereunder.

      (d)      Issuance of Shares.  The Shares to be issued on the Closing Date, have been duly authorized by all necessary corporate action and, when issued in accordance with the terms hereof and delivered by the Company, shall be
          validly issued and outstanding, fully paid and nonassessable and free and clear of all Liens and the holders shall be entitled to all rights accorded to a holder of Common Stock. As used in this Section 3.1(d) “Lien” means any lien, pledge, encumbrance, mortgage, deed of trust, security interest, equity, claim, lease, license, charge, option, adverse right, right of first or last
          negotiation, offer or refusal, easement or transfer restriction of any kind or nature whatsoever, whether arising by agreement, operation of law or otherwise.

      (e)      Private Placement.

      (i) The Company has complied and will comply with all applicable federal and
          state securities laws and assuming the accuracy of the Purchaser’s representations and warranties set forth in this Agreement, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the
          Purchaser under this Agreement.

      
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      (ii) The Company has not engaged in any form of general or public solicitation or general
          advertising, or publicly disseminated advertisements or sales literature, including (1) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television or radio, or
          (2) any seminar or meeting to which potential purchasers invited by any of the foregoing means of communications.

      

      

      (f)      Registration Statement. The Company has timely filed or otherwise furnished (as applicable) all forms, reports, schedules, statements and documents required to be filed or furnished by it under the U.S. Securities Exchange
          Act of 1934, as amended (the “Exchange Act”), (as have been supplemented, modified or amended since the time of filing so long as such supplement,
          modification or amendment has occurred prior to the date of this Agreement, collectively, the “Filed SEC Documents”).  As of their respective SEC filing
          dates, or in each case, if amended prior to the date hereof, as of the date of the last such amendment, the Filed SEC Documents (including all documents incorporated therein by reference) (i) did not (or with respect to Filed SEC Documents filed
          after the date hereof, will not) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which
          they were made, not misleading and (ii) complied in all material respects with the applicable requirements of the Exchange Act and the applicable rules and regulations of the SEC thereunder. As of the date of this Agreement, none of the Company’s
          subsidiaries is currently required to make any filings with the SEC.

      (g)      Capitalization and Issuance of Shares.  The Company is authorized to issue 350 million shares of Common Stock and 50 million shares of preferred stock, par value $0.01 per share (“Preferred Stock”).  As of the date hereof, (1) 7,374,034 shares of Common Stock are issued and outstanding, (2) no shares of Preferred Stock are issued and outstanding, and (3) 274,452 shares of
          Common Stock are held as treasury shares.  All issued and outstanding shares of Common Stock have been duly authorized and are validly issued, fully paid, nonassessable and not subject to preemptive rights.

      (h)      Compliance with Laws. The Company and the Company Subsidiary, in all material respects, comply with all applicable laws affecting or related to the Company or the Company Subsidiary or any of their business, operations,
          assets or employees.  No investigation or review by any governmental authority with respect to the Company or any Company Subsidiary is pending or, to the knowledge of the Company, threatened and no governmental authority has indicated an
          intention to conduct the same.

      (i)      Brokers.  The Company agrees to indemnify and hold the Purchaser harmless against any liability for commissions, fees or other compensation in the nature of a broker’s or finder’s fee to any broker or other nature of a
          broker’s or finder’s fee to any broker or other person or firm (and the costs and expenses of defending against such liability) for which the Company, or any of its employees or representatives, is responsible.

      (j)      Reliance on Exemption.  The Company understands that the Shares are being offered and sold in reliance on a specific exemption from the registration requirement of federal and state securities laws and the Purchaser is
          relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Company set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser
          to acquire the Shares.

      (k)      Regulatory and Related Matters.

      
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      (i)      The Company represents and warrants that, to the best of its knowledge,
          neither it nor any of its affiliates nor any of its or their directors, officers, agents, employees, representatives or any other similar person associated with or acting for or on behalf of the foregoing in connection with the transactions
          contemplated in this Agreement, has offered, paid, promised to pay, or authorized the payment of any money, or offered, given a promise to give, or authorized the giving of anything of value, to any government official, political party or
          official thereof or to any candidate for political office (or to any person where the Company, any of its affiliates or any of its directors, officers, agents, employees, representatives of any other similar person knew or was aware of a high
          probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to any government official, political party, party official or candidate for political office) for the purpose of:

      (1)      influencing any act or decision of such government official, political party, party
          official or candidate in his or her official capacity; or

      (2)      inducing such government official, political party, party official or candidate to do or
          omit to do any act in violation of the lawful duty of such government official, political party, party official or candidate; or

      

      

      (3)      securing any improper advantage; or

      (4)      inducing such government official, political party, party official or candidate to use his
          or her influence with any governmental authority to affect or influence any act or decision of such governmental authority, in order to assist the Company in obtaining or retaining business, the transactions contemplated by this Agreement or any
          of the investments relevant to the arrangements contemplated by this Agreement.

      

      

      (ii)      The Company warrants and undertakes that:

      (1)      it will not, and will procure that its subsidiaries will not, engage in any activity, practice or conduct
          which would constitute a breach of any applicable law or convention relating to the prevention of bribery and corruption including, but not limited to: (A) the UK Bribery Act 2010 (the "Bribery Act"); (B) the United States Foreign Corrupt Practices Act of 1977 (as amended); and (C) the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed
          in Paris on December 17, 1997, which entered into force on February 15, 1999, and the Convention’s Commentaries;

      

      

      (2)      it has and will maintain in place throughout the Indemnification Period adequate procedures designed to
          prevent the Company or any of its subsidiaries or any of their respective directors, officers, employees, agents or other persons acting on the behalf of any of the foregoing, from undertaking any conduct that would give rise to an offence under
          the Bribery Act (as each such term is defined in the Bribery Act); and

      
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      (3)      it and each of its subsidiaries has not violated and it and each of its subsidiaries will not violate in any
          material respect any applicable law or regulation in connection with this Agreement or in connection with the carrying on of its business (including, without limitation, the US Foreign Account Tax Compliance Act and the US Foreign Corrupt
          Practices Act).

      

      

      Section 3.2     Representations and
              Warranties of the Purchaser. The Purchaser hereby makes the following representations and warranties to the Company as of the date of this Agreement and the Closing Date, as follows:

      

      

      (a)      Organization, Authorization, Good Standing and Power.  The Purchaser is an entity duly incorporated or organized, validly existing and in good standing under the laws of the Republic of the Marshall Islands.  The Purchaser
          has the requisite power and authority to enter into and perform this Agreement and to purchase the Shares being sold to it hereunder.  The execution, delivery and performance of this Agreement by the Purchaser and the consummation by it of the
          transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or partnership action, and no further consent or authorization of the Purchaser or its board of directors, or stockholders, as the case may be, is
          required.  This Agreement has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will
            constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms.

      (b)      Assets of the Owning Company. The Vessel is legally and beneficially owned by the Owning Company and, where capable of possession, in the possession or under the control of the Owning Company. The Vessel is
          secured by a first preferred mortgage granted by the Owning Company in favor of DVB Bank as security under the DVB Loan Agreement.

      (c)       Existing Facility. The Owning Company is a borrower under the DVB Loan Agreement. The transfer of the Owning Company to the
          Company Subsidiary is permitted under the terms of the DVB Loan Agreement. 

      

      

      (d)      Acquisition for Investment.  The Purchaser is acquiring the Shares for its own account for the purpose of investment and not with a view to or for sale in connection with a distribution.  The Purchaser does not have an
          arrangement (whether or not legally binding) to effect any distribution of the Shares to or through any person or entity; provided, however, that by making the representations herein, the Purchaser does not agree to hold the Shares for any minimum or other specific term and reserves the
          right to dispose of the Shares at any time in accordance with federal and state securities laws applicable to such disposition, including without limitation under a registration statement and a selling shareholder prospectus supplement naming the
          Purchaser therein.  It understands that the Shares have not been registered under the Securities Act by reason of specified exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide
          nature of its investment intent as expressed herein.  It acknowledges that the Company may place restrictive legends on, and stop transfer orders against, the certificates representing the Shares being acquired by it.

      (e)      Status of Purchaser.  The Purchaser is an “accredited investor” as defined in Regulation D promulgated under the Securities Act.  The Purchaser is not required to be registered as a broker-dealer under Section 15 of the
          Exchange Act and the Purchaser is not a broker-dealer.

      
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      (f)      No General Solicitation.  The Purchaser is not purchasing the Shares and the Shares were not offered to the Purchaser by means of any form of general or public solicitation or general advertising, or publicly disseminated
          advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media, or broadcast over television or radio, or (ii) any seminar or meeting to which the
          Purchaser was invited by any of the foregoing means of communications.

      (g)      Access to Information.  The Purchaser acknowledges that it has had the opportunity to review publicly available filings and exhibits thereto of the Company filed with the U.S. Securities and Exchange Commission and has
          been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the sale of the Shares and the merits and risks of investing
          in the Shares; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain
          such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.  The Purchaser further acknowledges and agrees
          that except for the representations and warranties set forth in this Agreement, the Company has not made any representation or warranty, express or implied, of any nature whatsoever concerning the Shares or the Company.  The Purchaser has sought
          such accounting, legal and tax advice as it has considered necessary to make an informed decision with respect to its acquisition of the Shares.

      (h)      Brokers. The Purchaser agrees to indemnify and hold the Company harmless against any liability for commissions, fees or other compensation in the nature of a broker’s or finder’s fee to any broker or other nature of a
          broker’s or finder’s fee to any broker or other person or firm (and the costs and expenses of defending against such liability) for which the Purchaser, or any of its employees or representatives, is responsible.

      (i)      Reliance
              on Exemption.  The Purchaser understands that the Shares are being offered and sold in reliance on a specific exemption from the registration requirement of federal and state securities laws and the Company is relying upon the
          truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the
          Shares.

      

      

      ARTICLE IV

          Covenants and Registration

      Section 4.1     Covenants of the Company
              and the Company Subsidiary.  The Company and the Company Subsidiary, as applicable, covenant with the Purchaser as follows, which covenants are for the benefit of the Purchaser and its permitted assignees.

      (a)       Availability of Information. With a view to making available the benefits of certain rules and regulations of the SEC that may permit the sale of the Shares to the public without registration, the Company
          shall:

      

      

      (i)      make and keep public information regarding the Company available, as those terms are
          understood and defined in Rule 144 under the Securities Act, at all times from and after the date hereof;

      

      

      (ii)      use its commercially reasonable best efforts to file with the United States Securities and
          Exchange Commission (the “SEC”) in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act at
          all times from and after the date hereof; and

      
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      (iii)      so long as the Purchaser owns any Shares, furnish, unless otherwise available at no charge
          by access electronically to the SEC’s EDGAR filing system, to the Purchaser forthwith upon request a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed or furnished with the SEC or
          take any other action as the Purchaser may reasonably request in availing itself of any rule or regulation of the SEC allowing the Purchaser to sell the Shares without registration.

      

      

      (b)      Listing. 

          The Company shall cause the Shares to be listed on the New York Stock Exchange or such other national securities exchange on which the Shares are then listed prior to issuance.

      

      

      (c)      Payments.

      (i)      No part of any payments received by the Company, directly or indirectly from the
          Purchaser or in connection with this Agreement, if any, will be used for any purpose which would cause a violation of any applicable laws and regulations.

      (ii)      Any payments under this Agreement, if any, will be made by cheque or bank transfer and
          no payments will be made in cash or bearer instruments. No payments under this Agreement will be made to a third party, instead all payments will be made in the place where the Company or, as the case may be, the Purchaser resides or performs the
          relevant services.

      (d)      Payments to Government Officials.  The Company undertakes that it will not and will not knowingly permit any affiliates or any of its or their directors, officers, agents, employees, representatives or any other similar
          person associated with or acting on behalf of the foregoing to offer, pay, promise to pay, or authorize the payment of any money, or offer, give a promise to give, or authorize the giving of anything of value, to any government official,
          political party or official thereof or to any candidate for political office (or to any person where the Company or its affiliates or any of their directors, officers, agents, employees, representatives or other similar person knows or is aware
          of a high probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to any government official, political party, party official or candidate for political office) for the
          purposes specified herein or in Section 3.1(j).

      (e)      Undertakings of the Company and the Company Subsidiary in relation to the Reversal.  If the Purchaser shall notify the Company and the Company Subsidiary that a Reversal Event has occurred, the Company shall, and shall
          procure that the Company Subsidiary shall, and the Company Subsidiary shall:

      (i)      take all the necessary steps and actions required in order that the Reversal is completed
          within three (3) Business Days of receipt of such notification;

      (ii)      promptly execute and deliver any notices, transfers, documents or deeds required by the
          Purchaser or otherwise necessary under applicable law or as reasonably requested by DVB Bank in order to effect the Reversal.

      

      

      Section 4.2     Covenants of the
              Purchaser.  The Purchaser covenants with the Company as follows, which covenants are for the benefit of the Company and its permitted assignees.

      

      

      (a)      Compliance
              with Laws. The Purchaser covenants that the Shares may be disposed of only pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption
          from, or in a transaction not subject to, the registration requirements of the Securities Act, and in compliance with any applicable state and federal securities laws or pursuant to the Reversal.

      
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      (b)      Short Sales After The Date Hereof. The Purchaser shall not, and shall cause its trading affiliates not to, engage, directly or indirectly, in any short-sale transactions in the Company’s securities during
          the period from the date hereof until the 180th day following the Closing Date.

      (c)      Purchaser’s Undertakings in relation to the Reversal.  If a Reversal Event has occurred the Purchaser shall:

      (i)      immediately notify the Company and the Company Subsidiary that the Reversal Event has
          occurred and that the Reversal must be completed within fourteen (14) days of receipt of such notification;

      (ii)      take all the necessary steps and actions, and promptly execute and deliver any notices,
          transfers, documents or deeds required by the Company or otherwise necessary under applicable law or as reasonably requested by DVB Bank in order to effect the Reversal.

      

      

      ARTICLE V

      Indemnification

      

      

      From and after the Closing Date until the twelve (12) month anniversary of the Closing Date, (such period the “Indemnification Period”) the Company hereby agrees to indemnify and hold the Purchaser, and its directors, officers, employees, affiliates, stockholders,
          members, agents, attorneys, representatives, successors and assigns (collectively, the “Purchaser Indemnified Parties”) harmless from and against, and pay
          to the applicable Purchaser Indemnified Parties the amount of, any and all direct losses. liabilities, claims, costs, damages, demands, charges and expenses (including legal expenses but excluding any consequential, incidental, or indirect
          damages of any nature whatsoever) suffered or incurred by the Purchaser Indemnified Parties arising from, relating to or otherwise in connection with:

      

      

      (i)      any breach of or inaccuracy in any representation or warranty of the Company contained in
          this Agreement, the result of which taken in the aggregate could negatively impact the sale of the Shares by the Purchaser or frustrate the intent or purpose of any provision of this Agreement without giving effect to any materiality threshold or
          qualifier contained therein when determining such losses, liabilities, claims, costs, damages, charges and expenses (but, for the avoidance of doubt, such qualifiers shall be given full force and effect when determining whether any breach or
          inaccuracy has occurred or when otherwise determining whether a claim may be brought hereunder); and

      

      

      (ii)      any breach of or failure to perform any covenant or agreement of the Company contained in
          this Agreement required to be performed or complied with, the result of which taken in the aggregate could negatively impact the sale of the Shares by the Purchaser or frustrate the intent or purpose of any provision of this Agreement

      provided,

            however, that the Indemnification Period shall not include any period during which the Purchaser does not own Shares.  The absolute limit on the Company’s liability hereunder shall be the SPV Value.

      The right to indemnification or any other remedy based on representations,
          warranties, covenants and agreements in this Agreement shall not be affected by any investigation conducted at any time, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of
          this Agreement, the Closing Date with respect to the accuracy or inaccuracy of, or compliance with, any such representation, warranty, covenant or agreement.  The waiver of any condition in this Agreement pursuant to the terms of this Agreement
          based on the accuracy of any such representation or warranty, or on the performance of or compliance with any such covenant or agreements, shall not affect the right to indemnification based on such representations, warranties, covenants and
          agreements.

      
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      ARTICLE VI

          Transfer Restrictions

      Section 6.1     Legend.  Each
          certificate representing the Shares shall be stamped or otherwise imprinted with a legend substantially in the following form:

      

      

      THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
          AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
          ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
          PROVIDED BY THE TRANSFEROR OR TRANSFEREE OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

      

      

      Section 6.2     Removal of Legends.
          The Company agrees that, commencing upon the one (1) year anniversary of the issuance of the Shares, upon the request of the Purchaser and delivery of (i) the representation of the Purchaser that it is not an affiliate of the Company, and (ii)
          the surrender of the original certificate evidencing Shares, if any, the Company will promptly instruct its transfer agent to remove any restrictive legend from the Shares and, if applicable, issue new shares certificates evidencing the Shares
          not bearing a restrictive legend.

      

      

      ARTICLE VII

          Miscellaneous

      Section 7.1     Fees and Expenses. 

          Except as otherwise set forth in this Agreement, each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party incident to the negotiation, preparation,
          execution, delivery and performance of this Agreement.

      

      

      Section 7.2     Survival. 
          The representations and warranties made in Article III herein shall survive the date of execution of this Agreement for a period of three (3) years. For the avoidance of doubt, the Indemnification rights as provided in Article V herein shall
          survive from and after the Closing Date until the twelve (12) month anniversary of the Closing Date.

      

      

      Section 7.3     Specific Enforcement, Consent to Jurisdiction.

      

      

      (a)      The Company and the Purchaser acknowledge and agree that irreparable
          damage would occur in the event that any of the provisions of this Agreement was not performed in accordance with its specific terms or was otherwise breached.  It is accordingly agreed that the Parties shall be entitled to an injunction or
          injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity.

      
        9

        
          

      

      

      

      

      

      (b)      Each of the Company and the Purchaser (i) hereby irrevocably submits to
          the jurisdiction of the United States District Court sitting in the Southern District of New York and the courts of the State of New York located in New York county for the purposes of any suit, action or proceeding arising out of or relating to
          this Agreement or the transactions contemplated hereby or thereby and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the
          suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.  Each of the Company and the Purchaser consents to process being served in any such suit, action or proceeding by
          mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing in this Section 7.3 shall
          affect or limit any right to serve process in any other manner permitted by law.

      Section 7.4     Amendment. 
          No provision of this Agreement may be amended, discharged or terminated other than by a written instrument signed by the Company and the Purchaser, and no provision hereof may be waived other than by a written instrument signed by the party
          against whom enforcement of any such amendment or waiver is sought.

      

      

      Section 7.5     Notices.  Any
          notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon delivery by facsimile at the address or number designated below (if delivered on a business day
          during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
          business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:

      	
               

              If to the Company:

            	
               

              Nordic American Offshore Ltd.

              LOM Building

              27 Reid Street

              Hamilton HM 11

              Bermuda

            
	 	 
	
              If to the Company Subsidiary:

            	
              AHTS Holdco Limited

              c/o Nordic American Offshore Ltd.

              LOM Building

              27 Reid Street

              Hamilton HM 11

              Bermuda

               

            
	 	 
	
              If to the Purchaser:

            	
              Scorpio Offshore Holding Inc.

              c/o Scorpio Commercial Management s.a.m.

              Le Millenium

              9 Boulevard Charles III

              MC 98000

              Monaco

              FAO: Legal Department

               

            
	 	 

      

      

      Any party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address
          to the other party hereto.

      
        10

        
          

      

      

      

      

      

      Section 7.6     Waivers.  No
          waiver by either party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions, condition or requirement hereof, nor
          shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

      

      

      Section 7.7     Successors and Assigns. 

          This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and assigns.  Notwithstanding the foregoing,
          this Agreement may not be transferred or assigned by the Company without the prior written consent of the Purchaser.

      

      

      Section 7.8     No Third Party
              Beneficiaries.  This Agreement is intended for the benefit of the Parties hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person
          except DVB Bank.

      

      

      Section 7.9     Governing Law. 

          This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of
          another jurisdiction.  This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted.

      

      

      Section 7.10     Counterparts. 

          This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when
          counterparts have been signed by each party and delivered to the other Parties hereto, it being understood that all Parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or PDF, such
          signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

      

      

      Section 7.11     Limit on Liability. 

          EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE COMPANY HAS NOT MADE AND EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OF ANY NATURE
          WHATSOEVER CONCERNING THE SHARES OR THE COMPANY OR OTHERWISE IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO ANY
          OTHER PARTY UNDER THIS AGREEMENT FOR ANY CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES OF ANY NATURE WHATSOEVER, INCLUDING WITHOUT LIMITATION ANY LOSS OF PROFIT OR ANTICIPATORY PROFITS, EVEN IF SUCH PARTY HAS BEEN APPRISED OF THE LIKELIHOOD OF
          SUCH DAMAGES OCCURRING.  

      

      

      Section 7.12     Severability. 

          The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held
          to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement and such provision shall be reformed and construed as if such
          invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible.

      

      

      Section 7.13     Headings. 
          The headings used in this Agreement are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Agreement.

      

      

      Section 7.14     Further Assurances. 

          From and after the date of this Agreement, upon the request of the Purchaser or the Company, each of the Parties shall execute and deliver such instrument, documents and other writings as may be reasonably necessary or desirable to confirm and
          carry out and to effectuate fully the intent and purposes of this Agreement and the transactions contemplated thereby.

      

      

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

      
        11

        
          

      

      IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective
          authorized person as of the date first above written.

      	 	
              COMPANY

               

            
	 	
              NORDIC AMERICAN OFFSHORE LTD.

            
	 	 
	 	 
	 	
              By:

            	 
	 	
              Name:

            	
              Cameron Mackey

            
	 	
              Title:

            	
              Chief Operating Officer

            
	 	 	 
	 	 	 
	 	 	 
	 	
              COMPANY SUBSIDIARY

            
	 	 
	 	
              AHTS HOLDCO LIMITED

            
	 	 
	 	
              By:

            	 
	 	
              Name:

            	
              Cameron Mackey

            
	 	
              Title:

            	
              Secretary

            
	 	 	 
	 	 	 
	 	 	 
	 	
              PURCHASER

            
	 	 
	 	
              SCORPIO OFFSHORE HOLDING INC.

            
	 	 
	 	
              By:

            	 
	 	
              Name:

            	
              Robert Bugbee

            
	 	
              Title:

            	
              DirectorExhibit 4.9

  

  

  

  

  

  

  

  
    
      DEED OF MASTER AGREEMENT

      This deed of master agreement (the “Master”) is effective as of 10 April 2019

      BETWEEN:

      
        
          	(1)	
                  NORDIC AMERICAN OFFSHORE LTD., a company incorporated
                      under the laws of Bermuda and having its registered office at LOM Building, 27 Reid Street, Hamilton HM 11, Bermuda (“NAO”) on its
                      own account and as guarantor and agent for and on behalf of each of its existing, directly or indirectly, wholly owned subsidiaries (as set out in Schedule

                          1) (“SPVs”) as well as any future subsidiaries being directly or indirectly wholly owned by NAO (“Future SPVs”) (the SPVs and Future SPVs jointly referred to as the “NAO SPVs”);

                

        

      

      
        
          	(2)	
                  SCORPIO COMMERCIAL MANAGEMENT S.A.M., a company
                      incorporated under the laws of Monaco and having its registered office at 9 Boulevard Charles III, Monaco 98000 (“SCM”); and

                

        

      

      
        
          	(3)	
                  SCORPIO SHIP MANAGEMENT S.A.M., a company
                      incorporated under the laws of Monaco and having its registered office at 9 Rue Du Gabian, Monaco 98000 (“SSM”);

                

        

      

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

      WHEREAS:

      
        
          	(1)	
                  The NAO SPVs: (i) control certain vessels purchased from third parties; (ii) may in the future control a number of vessels to be delivered from various
                      shipyards or purchased or chartered in from third parties (the vessels in (i) and (ii) above hereinafter together referred to as the “Vessels”,

                      and each a “Vessel”). References to “control” or “controlled” herein means owned or chartered.

                

        

      

      
        
          	(2)	
                  SSM and SCM provide technical and commercial management services (respectively). The Vessels require technical and/or commercial management services from
                      SSM and/or SCM (respectively).

                

        

      

      
        
          	(3)	
                  The Parties have agreed on a standard set of terms for technical and commercial management services, which shall be applicable to all Vessels.

                

        

      

      
        
          	(4)	
                  The standard set of terms for the commercial management of the Vessels is hereby attached as Annex I (“Standard Commercial Management Terms”) and the standard set of terms for the technical
                      management of the Vessels is hereby attached as Annex II (“Standard Technical Management Terms”). Both the Standard Commercial Management Terms and the Standard Technical Management Terms (together the “Standard Management Terms”) form an integral part of this Master.

                

        

      

      NOW THEREFORE IT IS
            AGREED as follows:

      
        
          	

                	1.	
                  The Standard Management Terms contain the terms and conditions concerning the commercial and/or technical management provided by SCM and SSM respectively,
                      to each Vessel controlled by the NAO SPVs.

                

        

      

      
        
          	

                	2.	
                  All Vessels, existing and future, will be governed
                      by the Standard Commercial Management Terms and/or Standard Technical Management Terms, in each case as amended by the terms detailed in the Confirmation (as defined below). The entry by a Vessel under management by SCM and/or SSM
                      under the Standard Management Terms and any

                

        

      

      
        Page 1 of 19

        
          

      

      

      

      amendments to the Standard Management Terms (collectively, the “Management Agreements”), will be evidenced by a written confirmation (substantially in the form set out in Schedule 2) executed by and between NAO as agent for and on behalf of the relevant NAO SPV on the one hand and SCM and/or SSM on the other hand (the “Confirmation”). Provided always that where any Vessels are time chartered from third parties (“Time
            Chartered Vessels”): (i) the Standard Technical Management Terms shall not apply, unless otherwise agreed, and (ii) the Time Chartered Vessels shall be governed by the Standard Commercial Management Terms, in each case as amended by the
          terms of the Time Chartered Vessels Confirmation (as defined below). The entry by a Time Chartered Vessel under management by SCM and any amendments to the Standard Commercial Management Terms, will be evidenced by a written confirmation
          (substantially in the form set out at Schedule 3) executed by and between NAO as agent for and on behalf of the relevant NAO SPV on the one hand and SCM
          on the other hand (the “TC Confirmation”).

      
        
          	

                	3.	
                  The management by SCM and/or SSM pursuant to the Standard Management Terms (as applicable) as amended by the terms detailed in the Confirmation shall be
                      effective as of the date prescribed in the Confirmation or TC Confirmation, as applicable (the “Effective Date”).

                

        

      

      
        
          	

                	4.	
                  With effect from the date of the Confirmation (“Confirmation
                        Date”) and prior to the Effective Date of each of the Management Agreements each of SCM and SSM undertake that they will have the necessary resources to manage each of the Vessels in place following the Effective Date.

                

        

      

      
        
          	

                	5.	
                  It is hereby agreed that in each and any of the following circumstances:

                

        

      

      
        
          	

                	i.	
                  any termination or actual or purported withdrawal by NAO or applicable NAO SPVs of a Confirmation and/or Management Agreement prior to the relevant
                      Effective Date;

                

        

      

      
        
          	

                	ii.	
                  a Vessel not being delivered into the respective Management Agreement within 100 days of the respective Effective Date for any reason whatsoever other than
                      (a) the insolvency of the yard where the Vessel is being built provided that the insolvency prevents and not merely delays construction and delivery of the Vessel and (b) the total loss (actual constructive or compromised) of the
                      vessel whilst under construction at the yard (the aforementioned 5(ii)(a) and 5(ii)(b) being together “Extraordinary Events”); or

                

        

      

      
        
          	

                	iii.	
                  on or prior to the Effective Date (as applicable) the respective Confirmation and/or Management Agreement being declared void or ineffective for any other
                      reason whatsoever,

                

        

      

      an early termination fee in respect of each Management Agreement being the equivalent of three (3)
          months of management fees payable to SCM and/or SSM (as applicable) according to the provisions of (a) clause 12 of the Commercial Management Terms and/or (b) clause 8 of the Technical Management Terms under the Management Agreement (the “Management Fees”) shall be immediately due and payable by the relevant NAO SPV to SCM and/or SSM (as applicable) and in the event SCM and/or SSM
          (as applicable) does not receive at least three months prior written notice of the termination event, the early termination fee shall be increased by three (3) months of Management Fees reduced by the pro rata amount where prior written notice of
          the termination event was given.

      
        Page 2 of 19

        
          

      

      

      

      
        
          	

                	6.	
                  Notwithstanding the foregoing, on or following a Change of Control (as defined at Annex IV hereto) and in each of the circumstances set out in Clause 5(ii)(a) and (b) the early termination fee amount set out in the paragraph above shall not apply and shall be replaced with an early
                      termination fee in respect of each Management Agreement being the equivalent  of twenty-four (24) months of management fees payable to the Managers according to the provisions of (a) clause 12 of the Commercial Management Terms and/or
                      (b) clause 8 of the Technical Management Terms under the Management Agreement, which fee shall be immediately due and payable by the relevant NAO SPV to SCM and/or SSM.

                

        

      

      For the purpose of calculating the early termination fees referred to in this Clause 6:

      
        
          	

                	(i)	
                  For the purpose of calculating the early termination fee relating only to the Standard Technical Management Terms, references to management fees shall be
                      the flat management fee applicable to that type of Vessel set out in the applicable Confirmation or where no Confirmation has been issued, the flat management fee applicable to that type of Vessel then in effect; and

                

        

      

      
        
          	

                	(ii)	
                  For the purpose of calculating the early termination fee relating only to the Standard Commercial Management Terms:

                

        

      

      (a) the flat management fee applicable to that type of Vessel set out in the applicable
          Confirmation or where no Confirmation has been issued, the flat management fee applicable to that type of Vessel then in effect; and

      (b) the amounts which comprise the Commission (as defined at clause 12 of the Standard Commercial
          Management Terms) as calculated pursuant to clause 22(g)(vi) for a Part Period (as defined therein) of the Standard Commercial Management Terms shall be applied as from the date the Vessel was scheduled to be delivered pursuant to the applicable
          purchase agreement, newbuilding contract, or equivalent document.

      Further notwithstanding the foregoing, upon the occurrence of any Extraordinary Events, the early
          termination fees set out above shall not apply and will be replaced with an early termination fee equivalent to three months management fee in respect of each Management Agreement and shall immediately become due and payable by the relevant NAO
          SPV to SCM and/or SSM (as applicable).

      
        
          	

                	7.	
                  NAO agrees to guarantee and indemnify each of SCM and SSM in respect of the performance by each of the NAO SPVs of its respective obligations under this
                      Master and the Management Agreements and shall issue in favour of each of SCM and SSM a guarantee in the form attached at Annex 3 on the same date as this Master.

                

        

      

      
        
          	

                	8.	
                  The Parties hereby acknowledge and agree that in the event of any inconsistency between the provisions of this Master and any of the Management Agreements:
                      (i) prior to the applicable Effective Date, the provisions of the Master shall prevail; and (ii) on and after the applicable Effective Date the provisions of the Management Agreement shall prevail.

                

        

      

      
        
          	

                	9.	
                  This Master may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same
                      instrument.

                

        

      

      
        
          	

                	10.	
                  This Master shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Master shall be
                      referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-

                

        

      

      
        Page 3 of 19

        
          

      

      

      

      enactment thereof save to the extent necessary to give effect to the provisions of this Clause. The
          arbitration shall be conducted in accordance with the London Maritime Arbitrators Terms current at the time when the arbitration proceedings are commenced.

      
        
          	

                	11.	
                  No provision of this Master shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to this Master or a
                      Future SPV.

                

        

      

      IN WITNESS WHEREOF
          this Master has been duly executed as a deed and delivered with effect from the date written above.

      	
              Executed as a deed by Emanuele Lauro

              For and on behalf of

              NORDIC AMERICAN OFFSHORE LTD.

              in the presence of

              Signature of Witness

              Name, address and occupation of witness

            	
              )

              )

              )

              )

              )

              )

            	
               

               

              /s/ Emanuele Lauro

            

      

      

      

      

      

      

      	
              Executed as a deed by Emanuele Lauro

              For and on behalf of

              NORDIC AMERICAN OFFSHORE LTD.

              As agent for and on behalf of each of the NAO SPVs:

              in the presence of:

              Signature of Witness

              Name, address and occupation of witness

               

            	
              )

              )

              )

              )

              )

              )

              )

               

            	
               

               

              /s/ Emanuele Lauro

            

      

      

      

      

      

      

      	
              Executed as a deed by Aldo Poma

              For and on behalf of

              SCORPIO COMMERCIAL MANAGEMENT S.A.M.

              in the presence of:

              Signature of Witness

              Name, address and occupation of witness

            	
              )

              )

              )

              )

              )

              )

              )

            	
               

               

              /s/ Aldo Poma

            

      

      

      

      

      

      

      	
              Executed as deed by Filippo Lauro

              For and on behalf of

              SCORPIO SHIP MANAGEMENT S.A.M.

              in the presence of:

              Signature of Witness

              Name, address and occupation of witness

            	
              )

              )

              )

              )

              )

              )

            	
               

               

              /s/ Filippo Lauro

            

      

      

      
        Page 4 of 19

        
          

      

      Schedule 1

      
        
          	1.	
                  Petro Craft 2017-1 Shipping Company Limited

                

        

      

      
        
          	2.	
                  Petro Craft 2017-2 Shipping Company Limited

                

        

      

      
        
          	3.	
                  Petro Craft 2017-3 Shipping Company Limited

                

        

      

      
        
          	4.	
                  Petro Craft 2017-4 Shipping Company Limited

                

        

      

      
        
          	5.	
                  Petro Craft 2017-5 Shipping Company Limited

                

        

      

      
        
          	6.	
                  Petro Craft 2017-7 Shipping Company Limited

                

        

      

      
        
          	7.	
                  Petro Craft 2017-8 Shipping Company Limited

                

        

      

      
        
          	8.	
                  Petro Combi 6030-01 Shipping Company Limited

                

        

      

      
        
          	9.	
                  Petro Combi 6030-02 Shipping Company Limited

                

        

      

      
        
          	10.	
                  Petro Combi 6030-03 Shipping Company Limited

                

        

      

      
        
          	11.	
                  Petro Combi 6030-04 Shipping Company Limited

                

        

      

      
        
          	12.	
                  Scorpio Baron Shipping Company Limited

                

        

      

      
        
          	13.	
                  Scorpio Brilliance Shipping Company Limited

                

        

      

      
        Page 5 of 19

        
          

      

      Schedule 2
          – FORM OF CONFIRMATION TO THE MASTER AGREEMENT EFFECTIVE AS OF 10 APRIL2019

      _______________________________________________________

      

      

      
        	
                VESSEL NAME

              	
                VESSEL DETAILS

              	
                REGISTERED OWNER

              	
                DATE OF ENTRY INTO NAO FLEET

              	
                DATE OF ENTRY INTO MANAGEMENT BY [SCM AND/OR SSM] PURSUANT TO WHICH THE NAO SPV AND [SCM AND/OR SSM] AGREE TO
                    BE BOUND BY THE [STANDARD COMMERCIAL MANAGEMENT TERMS AND STANDARD TECHNICAL MANAGEMENT TERMS (RESPECTIVELY)] (the “Effective Date”)

              	
                NOTES / AMENDMENTS TO STANDARD MANAGEMENT TERMS

              
	 	 	 	
                [8 April][CB Vessels]

                [10 April] [AHTS Vessels]

              	 	
                ·          Notices Address (Box 22, Part I of the Standard
                    Technical Management Terms and Standard Commercial Management Terms) for the Owners is as follows:

                 

                  

                [●]

                C/O 9 Boulevard Charles III, 98000 Monaco MC

                Tel +377 97985850

                Email: management@scorpiogroup.net

                 

                      

                ·          [In respect of the Standard Commercial Management
                    Terms, the management fees payable shall be: [●].]

                 

                  

                ·          [In respect of the Standard Technical Management
                    Terms, the flat management fees payable as per clause 8 are: US$ [●].]

                 

                  

                ·          Special provisions [if applicable]

              

      

      

      

      In respect of the Master Agreement effective as of 10 April 2019 (the “Master”) entered into by
          Nordic American Offshore Ltd., Nordic American Offshore Ltd., for and on behalf of existing and future, directly or indirectly, wholly owned vessel owning subsidiaries, Scorpio Commercial Management S.A.M. and Scorpio Ship Management S.A.M., [NAO
          SPV] hereby acknowledges, confirms and accepts the terms of the Master.

      
        Page 6 of 19

        
          

      

      

      

      Further, [Insert name of NAO SPV] acknowledges that in the event of any inconsistency between the provisions of the
          Master and this Management Agreement: (i) prior to the Effective Date, the provisions of the Master shall prevail; and (ii) on and after the Effective Date the provisions of this Management Agreement shall prevail.

      NORDIC AMERICAN
            OFFSHORE LTD. as agent for and on behalf of [insert name of NAO SPV]:

      Name:

          Position:

          Date:

      [Scorpio Commercial
            Management S.A.M.] [if applicable]

      Name:

          Position:

          Date:

      [Scorpio Ship
            Management S.A.M.] [if applicable]

      Name:

          Position:

          Date:

      NORDIC AMERICAN OFFSHORE LTD. as guarantor

      Name:

          Position:

          Date:

      
        Page 7 of 19

        
          

      

      Schedule 3
          – FORM OF TC CONFIRMATION TO THE MASTER AGREEMENT EFFECTIVE AS OF 10 APRIL 2019

      DATE OF CONFIRMATION
              [X] of Commercial and/or Technical Management Agreement (“Management Agreement”)

      	
              VESSEL NAME

            	
              VESSEL DETAILS

            	
              DISPONENT OWNER

            	
              DATE OF ENTRY INTO SALT FLEET

            	
              DATE OF ENTRY INTO MANAGEMENT BY [SCM AND/OR SSM] PURSUANT TO WHICH THE NAO SPV AND [SCM AND/OR SSM] AGREE TO BE
                  BOUND BY THE [STANDARD COMMERCIAL MANAGEMENT TERMS AND STANDARD TECHNICAL MANAGEMENT TERMS (RESPECTIVELY)] (the “Effective Date”)

            	
              NOTES / AMENDMENTS TO STANDARD MANAGEMENT TERMS

            
	 	 	 	 	 	
              Only Standard Commercial Management
                      Terms are amended as follows:

               

                    

              Both Standard Commercial and/or
                      Technical Management Terms are amended as follows:

               

                    

              Clause 1 “Time Charter”: definition
                      of time charter to be added.

               

                    

              Clause 21(a): delete and replace
                      with

               

                    

              “This Agreement shall come into
                      effect at the date stated in Box 2 and shall continue until terminated by either party giving notice to the other; in which event this Agreement shall terminate on the date on which the Vessel is re-delivered under the Time Charter
                      unless terminated earlier in accordance with Clause 22 (“Termination”)

               

                    

              Clause 22 (all sub-para): delete
                      all references to ET1, ET2, ET3 and ET4.

               

                    

              Clause 22(g)(i) delete “an ET2
                      event, or for” and “or an ET1, ET3 or ET4 event,”

               

                    

              Clause 22(g) sub clauses (ii) -
                      (vi) inclusive delete

            

      
        Page 8 of 19

        
          

      

      

      

      [insert name of Owner/Disponent Owner]:

      Name:

          Position:

          Date:

      

      

      [Scorpio Commercial
            Management S.A.M.] [if applicable]

      Name:

          Position:

          Date:

      [Scorpio Ship Management
            S.A.M.] [if applicable]

      Name:

          Position:

          Date:

      
        Page 9 of 19

        
          

      

      

      

      Annex I –
          STANDARD COMMERCIAL MANAGEMENT TERMS

      
        Page 10 of 19

        
          

      

      

      

      Annex II
          – STANDARD TECHNICAL MANAGEMENT TERMS

      
        Page 11 of 19

        
          

      

      DEED OF GUARANTEE (“Guarantee”)

      To:

      SCORPIO

            COMMERCIAL MANAGEMENT S.A.M., a company incorporated under the laws of Monaco and having its registered office at 9 Boulevard Charles III, Monaco 98000 (the “Beneficiary”)

      Effective as of: 10 April 2019

         

        

        (A) Background:

      

      
        
          	

                	(1)	
                  The NAO SPVs being each of the existing, directly or indirectly, wholly owned NAO subsidiaries (as set out in Schedule 1) (“SPVs”) as well as any future vessel owning and/or controlling
                      subsidiaries owned by NAO (“Future SPVs”) (the SPVs and the Future SPVs jointly referred to as the “NAO SPVs”) (i) control a number of vessels already on the water; and (ii) may in the future control vessels purchased or chartered in from third parties or
                      from various shipyards (together the “Vessels”). References to “control” or “controlled” herein means owned or chartered.

                

        

      

      
        
          	

                	(2)	
                  A Master Agreement effective as of 10 April 2019 (the “Master”)

                      has been entered into amongst others, ourselves, Nordic American Offshore Ltd., Nordic American Offshore Ltd. for and on behalf of existing and future, directly or indirectly, wholly owned subsidiaries, Scorpio Ship Management S.A.M
                      (“SSM”) and the Beneficiary, to govern the relationship of the aforementioned parties prior to delivery of any of the Vessels and
                      the Management Agreements, as defined below, becoming effective.

                

        

      

      
        
          	

                	(3)	
                  The Vessels will following delivery be technically and commercially managed by SSM and the Beneficiary (respectively).

                

        

      

      
        
          
            (B) OPERATIVE PROVISIONS

          

          	1.	
                  Payment Guarantee

                

        

      

      In consideration of the Beneficiary having entered and entering into commercial management
          agreements (“Management Agreements”) with any of the NAO SPVs in respect of the Vessels we, Nordic American Offshore Ltd., for ourselves and
          our successors from time to time (the “Grantor”) hereby irrevocably and unconditionally guarantee as primary obligor and not merely as the
          surety, the due and punctual performance of any obligations and payment of any amounts due to the Beneficiary by any of the NAO SPVs under or in connection with the Management Agreements and Master Agreement.

      
        
          	2.	
                  Liability Unconditional:

                

        

      

      The Grantor's liability under this Guarantee shall not be discharged, reduced or otherwise affected
          in any way by any reason (without limitation and whether or not known to the Grantor or the Beneficiary) including (i) the Beneficiary giving the Grantor time or any other concession, (ii) any composition, discharge, release or other variation of
          liability entered into with, or

      
        Page 12 of 19

        
          

      

      

      

      granted to, any NAO SPVs, (iii) the Beneficiary taking, holding, varying, realising or not
          enforcing any other security for the liabilities of any of the NAO SPVs or the Grantor under the Master and the Management Agreements (as amended, varied, supplemented, replaced or restated from time to time), (iv) any amendment, variation or
          waiver (however fundamental) of any provision of any of the Master and the Management Agreements, (v) any legal limitation or incapacity relating to any NAO SPVs or the Grantor, (vi) any invalidity or unenforceability of the obligations of any
          party under any of the Master and the Management Agreements or (vii) any other act or omission of the Beneficiary or any other circumstances which, but for this provision, might discharge the Grantor.

      
        
          	3.	
                  Continuing guarantee

                

        

      

      This Guarantee and the obligations of the Grantor hereunder are a continuing guarantee and shall
          continue in effect until all obligations and liabilities whatsoever which fall to be discharged by the Grantor under the Master and the Management Agreements, have been finally discharged in full, notwithstanding any intermediate payment, partial
          settlement or other matter.

      The Grantor’s obligations hereunder shall be in addition to and shall not in any way be prejudiced
          by any other guarantees granted or covenants assumed now or in the future by the Grantor in favour of the Beneficiary with respect to any claim that the Beneficiary has or may have against any NAO SPVs or the Grantor under either of the Master
          and/or the Management Agreements.

      
        
          	4.	
                  Other security

                

        

      

      The Beneficiary may enforce this Guarantee without first making demand on, or taking any proceeding
          against, any of the NAO SPVs or any other person first or resorting to any other security, guarantee or other means of payment.  The Grantor waives any right it may have of first requiring the Beneficiary to proceed against or claim payment from
          any NAO SPVs before claiming from the Grantor hereunder. No action (or inaction) by the Beneficiary in respect of any such security, guarantee or other means of payment shall prejudice or affect the liability of the Grantor hereunder.

      
        
          	5.	
                  No set-off or counterclaim

                

        

      

      All payments by the Grantor hereunder shall be made in full, without set‐off or counterclaim and
          free and clear of any deductions or withholdings or taxes or charges whatsoever in immediately available, freely transferable, cleared funds in United States Dollars for value on the date specified in the Beneficiary’s demand to the account
          notified to the Grantor by the Beneficiary.

      
        
          	6.	
                  Assignment

                

        

      

      The Grantor may not assign or transfer any of its rights or obligations hereunder.  The Beneficiary
          may assign any of its rights hereunder to a person in favour of whom an assignment has been made under the Master and the Management Agreements.

      
        
          	7.	
                  Notices and demands

                

        

      

      Any notice or demand by the Beneficiary under this Guarantee shall be in writing by letter or by
          fax, marked for the attention of the Legal Department, and shall be deemed to have been served on the Grantor (in the case of a letter) when delivered at Le Millenium, 9 Boulevard Charles III, MC 98000 Monaco and (in the case of a telefax) when
          received at +377 9777 8346 in complete and legible form.  Any notice or demand sent by telex shall be deemed to have been served at the time of despatch with confirmed answerback of the Grantor appearing on the transmission.

      
        Page 13 of 19

        
          

      

      

      

      
        
          	8.	
                  Law and Disputes

                

        

      

      This Guarantee shall be governed by and construed in accordance with English law and any dispute
          arising out of or in connection with this Guarantee 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 Clause. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Terms current at the time when the arbitration proceedings are commenced.

      IN WITNESS WHEREOF
          this Guarantee has been duly executed as a deed and delivered on this ________________2019.

      	
              Executed as a deed by

              For and on behalf of NORDIC AMERICAN
                    OFFSHORE LTD.

              in the presence of

              Signature of Witness

              Name, address and occupation of witness

            	
              )

              )

              )

              )

              )

              )

            	
              /s/

               

               

              /s/

            

      

      

      “Le Millenium” 9 Boulevard Charles III

      MC 98000 Monaco

      
        Page 14 of 19

        
          

      

      

      

      DEED OF GUARANTEE (“Guarantee”)

      To:

      SCORPIO

            SHIP MANAGEMENT S.A.M., a company incorporated under the laws of Monaco and having its registered office at 9 Rue du Gabian, Monaco 98000 (the
            “Beneficiary”)

      Effective as of: 10 April 2019

      
        (A) Background:

         

      
        
          	

                	(1)	
                  The NAO SPVs being each of the existing, directly or indirectly, wholly owned NAO subsidiaries (as set out in Schedule 1) (“SPVs”) as well as any future vessel owning subsidiaries wholly
                      owned by NAO (“Future SPVs”) (the SPVs and Future SPVs jointly referred to as the “NAO SPVs”) (i) control a number of vessels already on the water; and (ii) may in the future control vessels purchased or chartered in from third parties or from various
                      shipyards (together the “Vessels”). References to “control” or “controlled” herein means owned or chartered.

                

        

      

      
        
          	

                	(2)	
                  A Master Agreement effective as of 10 April 2019 (the “Master”)

                      has been entered into amongst others, ourselves, Nordic American Offshore Ltd., Nordic American Offshore Ltd., for and on behalf of existing and future, directly or indirectly, wholly owned subsidiaries, the Beneficiary and Scorpio
                      Commercial Management S.A.M. (“SCM”), to govern the relationship of the aforementioned parties prior to delivery of any of the
                      Vessels and the Management Agreements, as defined below, becoming effective.

                

        

      

      
        
          	

                	(3)	
                  The Vessels will following delivery be technically and commercially managed by the Beneficiary and SCM (respectively).

                

        

      

      
        
          
            (B) OPERATIVE PROVISIONS

          

           

        

      

      
        
          	1.	
                  Payment Guarantee

                

        

      

      In consideration of the Beneficiary having entered and entering into technical management
          agreements (“Management Agreements”) with any of the NAO SPVs in respect of the Vessels we, Nordic American Offshore Ltd., for ourselves and our successors from time to time (the “Grantor”) hereby irrevocably and unconditionally guarantee as
          primary obligor and not merely as the surety, the due and punctual performance of any obligations and payment of any amounts due to the Beneficiary by any of the NAO SPVs under or in connection with the Management Agreements and Master Agreement.

      
        
          	2.	
                  Liability Unconditional:

                

        

      

      The Grantor's liability under this Guarantee shall not be discharged, reduced or otherwise affected
          in any way by any reason (without limitation and whether or not known to the Grantor or the Beneficiary) including (i) the Beneficiary giving the Grantor time or any other concession, (ii) any composition, discharge, release or other variation of
          liability entered into with, or granted to, any NAO SPVs, (iii) the Beneficiary taking, holding, varying, realising or not enforcing any other security for the liabilities of any of the NAO SPVs or the Grantor under the Master and the Management
          Agreements (as amended, varied, supplemented, replaced or restated from time to time), (iv) any amendment, variation or waiver (however fundamental) of any provision of any of

      
        Page 15 of 19

        
          

      

      

      

      the Master and the Management Agreements, (v) any legal limitation or incapacity relating to any
          NAO SPVs or the Grantor, (vi) any invalidity or unenforceability of the obligations of any party under any of the Master and the Management Agreements or (vii) any other act or omission of the Beneficiary or any other circumstances which, but for
          this provision, might discharge the Grantor.

      
        
          	3.	
                  Continuing guarantee

                

        

      

      This Guarantee and the obligations of the Grantor hereunder are a continuing guarantee and shall
          continue in effect until all obligations and liabilities whatsoever which fall to be discharged by the Grantor under the Master and the Management Agreements, have been finally discharged in full, notwithstanding any intermediate payment, partial
          settlement or other matter.

      The Grantor’s obligations hereunder shall be in addition to and shall not in any way be prejudiced
          by any other guarantees granted or covenants assumed now or in the future by the Grantor in favour of the Beneficiary with respect to any claim that the Beneficiary has or may have against any NAO SPVs or the Grantor under either of the Master
          and/or the Management Agreements.

      
        
          	4.	
                  Other security

                

        

      

      The Beneficiary may enforce this Guarantee without first making demand on, or taking any proceeding
          against, any of the NAO SPVs or any other person first or resorting to any other security, guarantee or other means of payment.  The Grantor waives any right it may have of first requiring the Beneficiary to proceed against or claim payment from
          any NAO SPVs before claiming from the Grantor hereunder. No action (or inaction) by the Beneficiary in respect of any such security, guarantee or other means of payment shall prejudice or affect the liability of the Grantor hereunder.

      
        
          	5.	
                  No set-off or counterclaim

                

        

      

      All payments by the Grantor hereunder shall be made in full, without set‐off or counterclaim and
          free and clear of any deductions or withholdings or taxes or charges whatsoever in immediately available, freely transferable, cleared funds in United States Dollars for value on the date specified in the Beneficiary’s demand to the account
          notified to the Grantor by the Beneficiary.

      
        
          	6.	
                  Assignment

                

        

      

      The Grantor may not assign or transfer any of its rights or obligations hereunder.  The Beneficiary
          may assign any of its rights hereunder to a person in favour of whom an assignment has been made under the Master and the Management Agreements.

      
        
          	7.	
                  Notices and demands

                

        

      

      Any notice or demand by the Beneficiary under this Guarantee shall be in writing by letter or by
          fax, marked for the attention of the Legal Department, and shall be deemed to have been served on the Grantor (in the case of a letter) when delivered at Le Millenium, 9 Boulevard Charles III, MC 98000 Monaco and (in the case of a telefax) when
          received at +377 9777 8346 in complete and legible form.  Any notice or demand sent by telex shall be deemed to have been served at the time of despatch with confirmed answerback of the Grantor appearing on the transmission.

      
        
          	8.	
                  Law and Disputes

                

        

      

      This Guarantee shall be governed by and construed in accordance with English law and any dispute
          arising out of or in connection with this Guarantee 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 Clause. The arbitration shall

      
        Page 16 of 19

        
          

      

      

      

      be conducted in accordance with the London Maritime Arbitrators Terms current at the time when the
          arbitration proceedings are commenced.

      

      

      IN WITNESS WHEREOF
          this Guarantee has been duly executed as a deed and delivered on this ________________2019.

      	
              Executed as a deed by

              For and on behalf of NORDIC AMERICAN
                    OFFSHORE LTD.

              in the presence of

              Signature of Witness

              Name, address and occupation of witness

            	
              )

              )

              )

              )

              )

              )

            	
              /s/

               

               

              /s/

            

      

      

      “Le Millenium” 9 Boulevard Charles III

      MC 98000 Monaco

      
        Page 17 of 19

        
          

      

      

      

      Annex IV
          – CHANGE OF CONTROL DEFINITION

      For the purposes of this Master, “Change of Control” means the occurrence of any of the following:

      (A) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or
          consolidation), in one or a series of related transactions, of all or substantially all of NAO’s or its subsidiaries’ assets, taken as a whole, to any Person other than to a Permitted Owner;

      (B) an order made for, or the adoption by the Board of Directors of a plan of, liquidation or dissolution of NAO;

      (C) the consummation of any transaction (including any merger or consolidation) the result of which is that any
          Person, other than a Permitted Owner, becomes the beneficial owner, directly or indirectly, of a majority of NAO’s Voting Securities, measured by voting power rather than number of shares;

      (D) if, at any time, NAO becomes insolvent, admits in writing its inability to pay its debts as they become due, is
          adjudged bankrupt or declares bankruptcy or makes an assignment for the benefit of creditors, or makes a proposal or similar action under the bankruptcy, insolvency or other similar laws of any applicable jurisdiction or commences or consents to
          proceedings relating to it under any reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction;

      (E) the consolidation of NAO with, or the merger of NAO with or into, any Person, other than a Permitted Owner or the
          consolidation of any Person, other than a Permitted Owner, with, or the merger of any Person, other than a Permitted Owner, with or into, NAO, in any such event pursuant to a transaction in which any of the common stock outstanding immediately
          prior to such transaction are converted into or exchanged for cash, securities or other property or receive a payment of cash, securities or other property, other than any such transaction where NAO’s Voting Securities outstanding immediately
          prior to such transaction are converted into or exchanged for Voting Securities of the surviving or transferee Person constituting a majority (measured by voting power rather than number of shares) of the outstanding Voting Securities of such
          surviving or transferee Person immediately after giving effect to such issuance; or

      (F) a change in directors after which a majority of the members of the Board of Directors are not directors who were
          either nominated by, appointed by or otherwise elected with the approval of current board members at the time of such election.

       “Affiliates”
          means, with respect to any Person as at any particular date, any other Persons that directly or indirectly, through one or more intermediaries, are Controlled by, Control or are under common Control with the Person in question, and “Affiliate”
          means any one of them.

      “Control” or “Controlled” means, with respect to any Person, the right to elect or appoint, directly or indirectly, a majority of the directors of such Person or
          a majority of the Persons who have the

      
        Page 18 of 19

        
          

      

      

      

      right, including any contractual right, to manage and direct the business, affairs and operations of such Person, or
          the possession of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of Voting Securities, by contract, or otherwise.

      “Governmental
            Authority” means any domestic or foreign government, including any federal, provincial, state, territorial or municipal government, any multinational or supranational organization, any government agency (including the U.S. Securities and
          Exchange Commission), any tribunal, labor relations board, commission or stock exchange (including the New York Stock Exchange), and any other authority or organization exercising executive, legislative, judicial, regulatory or administrative
          functions of, or pertaining to, government.

      “NAO” shall
          mean Nordic American Offshore Ltd., a company incorporated under the laws of Bermuda and having its registered office at LOM Building, 27 Reid Street, Hamilton HM 11, Bermuda.

      “Permitted Owner”
          means (i) Mackenzie Financial Corporation, a corporation organized and existing under the laws of Ontario (“Mackenzie”) or the funds and
          accounts set out in Schedule A to the common stock purchase agreement dated 29 March 2019 entered into between SOI, Mackenzie and NAO, (ii) Scorpio Offshore Investments Inc., a corporation organized and existing under the laws of the Republic of
          the Marshall Islands (“SOI”), and (iii) any Affiliate of SOI.

      “Person” shall
          have the meaning ascribed to it as such term is used in Section 13(d)(3) of the Securities Exchange Act, as amended.

      “Voting Securities”
          means securities of all classes of a Person entitling the holders thereof to vote on a regular basis in the election of members of the board of directors or other governing body of such Person.

      

      

      

      

    

    

    

    Page 19 of 19

     

      

     

      

    
      
        

    

  

  Annex I

  

  

  

    

    

    

    

    
      
        

    

    

    

    

    

    

    

    

    

    

    

    

  

  
    
      

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  
    
      

  

  

  

  

  

  

  

  

  

  

  

  

  
    
      

  

  

  

  

  

  

  

  

  

  

  

  

  
    
      

  

  

  

  

  

  

  

  

  

  

  
    
      

  

  

  

  

  

  

  

  

  

  

  
    
      

  

  

  

  

  

  

  
    
      

  

  

  

  

  

  

    

  

  
    

    

    
      
        

    

    

    

    

    

    

    
      
        

    

    

    

    

    

    

    

    

    
      
        

    

    

    

    

    

    

    
      
        

    

    

    

    

    
      
        

    

    

    

    
      

      

      

      

      

      

      

    7

    

    
      
        

    

    

    

    

    

     

    

    

    

    

    
      
        

    

    

    

    

    

     

    

    

    

    

    
      
        

    

    

    

    

    

    

    

    

    

     

    

    

    

    

    
      
        

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        

    

    

    

    

    

    
      

      

      
        
          

      

      

      

      

      

      
        

        

        

        

        
          
            

        

        

        

        
          

          

          

          

          
            
              

          

          

          

          
            

            

            

            

            
              
                

            

            

            

            

            

            
              

              

              

              

              
                
                  

              

              

              

              

              

              
                

                

                

                

                
                  
                    

                

                

                

                
                  

                  

                  

                  

                  
                    
                      

                  

                  
                  

                  

                  
                    

                    

                    Annex II

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    SHIP MANAGEMENT AGREEMENT

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    
                      1 of 28

                      
                        

                    

                    

                    

                    MANAGEMENT AGREEMENT

                    

                    

                    INDEX

                    

                    

                    

                    

                    

                    

                    	
                            PART

                          	
                            SUBJECT MATTER

                          	
                            PAGE NO.

                          
	 	 	 
	
                            Part I

                          	
                            Vessel Details

                          	
                            4

                          
	 	 	 
	
                            Part II

                          	
                            Terms of Agreement

                          	 

                    

                    

                    	 	
                            1.

                          	
                            Definitions & Interpretation

                          	
                            6

                          
	 	
                            2.

                          	
                            Appointment of Managers

                          	
                            6

                          
	 	
                            3.

                          	
                            Basic Services

                          	
                            6

                          
	 	
                            3.1

                          	
                            Crewing

                          	
                            7

                          
	 	
                            3.2

                          	
                            Technical Management

                          	
                            8

                          
	 	
                            3.3

                          	
                            Purchasing

                          	
                            8

                          
	 	
                            3.4

                          	
                            Insurance

                          	
                            9

                          
	 	
                            3.5

                          	
                            Accounting and Budgeting

                          	
                            9

                          
	 	
                            3.6

                          	
                            Information System Software

                          	
                            10

                          
	 	
                            3.7

                          	
                            Shipboard Oil Pollution Emergency Plan

                          	
                            10

                          
	 	
                            3.8

                          	
                            OPA

                          	
                            11

                          
	 	
                            3.9

                          	
                            Assistance with Sale of Vessel

                          	
                            11

                          
	 	
                            3.10

                          	
                            Vessel trading in high risk areas

                          	
                            11

                          
	 	
                            4.

                          	
                            Services provided by Sub-Managers

                          	
                            11

                          
	 	
                            5.

                          	
                            Managers’ Obligations

                          	
                            12

                          
	 	
                            6.

                          	
                            Owners’ Obligations

                          	
                            12

                          
	 	
                            7.

                          	
                            Documentation

                          	
                            13

                          
	 	
                            8.

                          	
                            Management Fee

                          	
                            13

                          
	 	
                            9.

                          	
                            Payments and Management of Funds

                          	
                            14

                          
	 	
                            10.

                          	
                            Manager’s Right to Sub-Contract

                          	
                            15

                          
	 	
                            11.

                          	
                            Responsibilities

                          	
                            15

                          
	 	
                            11.1

                          	
                            Force Majeure

                          	
                            15

                          
	 	
                            11.2

                          	
                            Liability to Owners

                          	
                            16

                          
	 	
                            11.3

                          	
                            Indemnity – General

                          	
                            16

                          
	 	
                            11.4

                          	
                            Indemnity – Tax

                          	
                            16

                          
	 	
                            11.5

                          	
                            Himalaya

                          	
                            16

                          
	 	
                            11.6

                          	
                            Consequential Loss

                          	
                            17

                          
	 	
                            12.

                          	
                            Liens

                          	
                            17

                          
	 	
                            13.

                          	
                            Claims/Disputes

                          	
                            17

                          
	 	
                            14.

                          	
                            Auditing, Records

                          	
                            17

                          
	 	
                            15.

                          	
                            Inspection of Vessel

                          	
                            18

                          
	 	
                            16.

                          	
                            Compliance with Laws & Regulations

                          	
                            18

                          
	 	
                            17.

                          	
                            Duration of the Agreement

                          	
                            19

                          
	 	
                            17.1

                          	
                            Termination by Notice

                          	
                            19

                          
	 	
                            17.2

                          	
                            Termination by Default – Owners

                          	
                            19

                          
	 	
                            17.3

                          	
                            Termination by Default – Managers

                          	
                            19

                          
	 	
                            17.4

                          	
                            Liquidation

                          	
                            19

                          
	 	
                            17.5

                          	
                            Extraordinary Termination

                          	
                            19

                          
	 	
                            18.

                          	
                            Confidentiality

                          	
                            20

                          
	 	
                            19.

                          	
                            Suspension of Services

                          	
                            20

                          

                    
                      2 of 28

                      
                        

                    

                    

                    

                    

                    

                    	 	
                            20.

                          	
                            Law and Arbitration

                          	
                            20

                          
	 	
                            21.

                          	
                            Amendments to Agreement

                          	
                            21

                          
	 	
                            22.

                          	
                            Time Limit for Claims

                          	
                            21

                          
	 	
                            23.

                          	
                            Condition of Vessel

                          	
                            21

                          
	 	
                            24.

                          	
                            Notices

                          	
                            21

                          
	 	
                            25.

                          	
                            Staff Loyalty

                          	
                            21

                          
	 	
                            26.

                          	
                            Entire Agreement

                          	
                            21

                          
	 	
                            27.

                          	
                            Partial Validity

                          	
                            22

                          
	 	
                            28.

                          	
                            Performance Guarantee

                          	
                            22

                          
	 	
                            29.

                          	
                            Non Waiver

                          	
                            22

                          

                    

                    

                    	
                            Part III

                          	
                            Sub-Managers

                          	
                            23-24

                          
	
                            Part IV

                          	
                            Fee Schedule

                          	
                            25

                          
	 	 	 
	
                            Part V

                          	
                            Fleet Details

                          	
                            26

                          
	
                            Part VI

                          	
                            Initial Budget

                          	
                            27-28

                          

                    

                    

                    
                      3 of 28

                      
                        

                    

                    SHIP MANAGEMENT AGREEMENT
                            - PART I

                    

                    

                    	
                            1. Vessel Details

                            As per the Confirmation (as defined in the Master Agreement).

                          	 
	 	 
	 	 
	 	 
	
                            2.   Owners

                          
	
                            Name: As per the Confirmation (as defined in the Master Agreement).

                          
	
                            2. Owners’ Registered Address (where the company is
                                    registered): Trust Company Complex,

                            Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands

                             

                          
	
                            Country of Incorporation: Republic of the Marshall Islands

                             

                          
	
                            2.2  Owners’ business establishment address (head office and principal place of business):

                            As per the Confirmation (as defined in the Master Agreement).

                             

                          
	 
	
                            Telephone Number

                          	
                            Fax Number:

                          
	
                            Contact Name:

                          	
                            Position:

                          
	 
	
                            Email address:

                             

                             

                          
	
                            3.   Managers

                          
	
                            Name:  Scorpio Ship Management sam

                          
	
                            Registered Office: 9, Rue Du Gabian, 98000, Monaco - MC

                          
	
                            Country of Incorporation: Monaco

                          
	
                            IMO Number: 0631141

                          
	
                            Telephone Number: +377 97985700

                          	
                            Fax Number:

                          
	
                            Contact Name: Francesco Bellusci

                          	
                            Position: Admnistrateur Delegue

                          
	
                             

                            Email

                                  address: fbellusci@scorpiogroup.net

                             

                          
	
                            4.   Guarantor (clause 28)

                            Name: Nordic American Offshore Ltd.

                          
	
                            5. Date of Commencement of Agreement (Clause 2.1)

                            As per the Confirmation (as defined in the Master Agreement).

                          
	 
	
                            6. Notices to Owners and Guarantor:   at the Owners’
                                Principal Place of Business address, fax number and email address stated in Box 2

                          
	 
	
                            7. Notices
                                  to Managers:      at the address, fax number and email address stated in Box 3

                          
	 

                    

                    

                    It is mutually agreed between the party mentioned in Box 2 of Part I (hereinafter called "the Owners") and the party mentioned
                        in Box 3 of Part I (hereinafter called "the Managers") and, if applicable, the party mentioned in Box 4 of Part I (hereinafter called “the Guarantor”) that this Agreement consisting of PARTS I to VI inclusive shall be performed
                        subject to the conditions contained herein

                    
                      4 of 28

                      
                        

                    

                    

                    

                    

                    

                    

                    

                    DATE OF AGREEMENT:

                    

                    

                    

                    

                    	
                            Signature(s) (Owners)

                          	 	
                            Signature(s) (Managers)

                          	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                            Title:

                          	 	
                            Title:

                          	 

                    

                    

                    

                    

                    

                    

                    	
                            Signature(s) (Guarantor)

                          	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                            Title:

                          	 	 	 

                    

                    

                    

                    

                    
                      5 of 28

                      
                        

                    

                    

                    

                    SHIP MANAGEMENT AGREEMENT - PART II

                    

                    

                    
                      
                        	1.	
                                Definitions and Interpretation

                              

                      

                    

                    
                      
                        	1.1	
                                In this agreement (together with the Confirmation, any additional clauses or even date herewith and any schedules (the “Agreement”)), in
                                    addition to terms defined in Part I, save where the context otherwise requires, the following words and expressions shall have the meanings hereby assigned to them.

                              

                      

                    

                    "Approved
                          Broker” means the affiliated insurance broker of the Manager.

                    "Basic
                          Services" means services relating to Crewing, Technical Management, Purchasing, Insurance, Accounting and Budgeting, Information System Software, Shipboard Oil Pollution Emergency Plan, OPA and Assistance with Sale provided
                        in accordance with Clause 3 as well as Safety and Environmental Compliance Auditing & Training (“SECAT”).

                    “Change of
                          Control” means the definition given to it in the Schedule comprising Part VII.

                    "Crew Support
                          Costs" means all expenses of a general nature not particularly referable to any individual vessel for the time being managed by the Managers and incurred for the purpose of providing an efficient and economic management
                        service including, without prejudice to the generality of the foregoing, cost of crew standby pay, training schemes, cadet training schemes, study pay, recruitment and interviews.

                    “Fees”
                        means for the purposes of Clauses 8.5, 11.2 and 17.7 the items set out at part (a) in the Fee Schedule (as the same may be revised from time to time).

                    "Fee Schedule"
                        means the Schedule comprising Part IV or any revised Fee Schedule prepared by the Managers after the date hereof to record adjustments to the fees and expenses payable from time to time under this Agreement.

                    "Fleet"
                        shall mean any vessel owned or operated now or hereafter by the Owners or any parent, subsidiary or associated company of the Owners and the vessels (if any) details of which are set out in Part V hereto or any revised Part V
                        executed after the date hereof.

                    "Information
                          System Software" means the Managers' ship management software in executable object code form as described in Clause 3.6.l as the same may be upgraded and updated from time to time.

                    "ISM Code"
                        means the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention adopted by Resolution A.714 (18) of the International Maritime Organisation on 4 November 1994 and incorporated on 19 May
                        1994 into the SOLAS Convention 1974 as Chapter IX and any amendment thereto or substitution thereof.

                    “ISPS Code” means

                        the International Ship and Port Facility Security Code as adopted on 12 December 2002 by resolution 2 of the Conference of Contracting Governments to the International Convention for the Safety of Life at Sea 1974 and any amendment
                        thereto or substitution thereof.

                    "Management
                          Services" means Basic Services and all other functions performed by the Managers under the terms of this Agreement.

                    “Master
                          Agreement” means the deed of Master Agreement as might be amended and restated effective as of 10 April 2019 entered into by and between the Guarantor, the Guarantor on behalf of any existing and future wholly owned
                        subsidiaries, Scorpio Commercial Management S.A.M and the Managers.

                    “MLC”
                        means the Maritime Labour Convention 2006 and any amendment thereto, substitution thereof and ratification of the Maritime Labour Convention 2006 in
                        the respective States national law.

                    "OPA"
                        means the United States Oil Pollution Act of 1990, regulations made thereunder, and any amendment thereto or substitution thereof.

                    "Severance
                          Costs" means the costs which the employers are legally obliged to pay to or in respect of the Crew as a result of the early termination of any contract for service on board the Vessel.

                    "SMS"
                        means a Safety Management System in accordance with the ISM Code.

                    “SSP” means

                        a Ship Security Plan in accordance with the ISPS Code.

                    "STCW"
                        means the International Maritime Organisation Convention on Standards of Training Certification and Watchkeeping for Seafarers 1978, as amended in 1995 and any amendment thereto or substitution thereof.

                    "the Vessel"
                        shall mean the vessel details of which are set out in Box 1 of Part I.

                    
                      
                        	1.2	
                                Clause Headings are inserted for convenience and shall be ignored in construing this Agreement; words denoting the singular number shall
                                    include the plural number and vice versa;
                                    references to Parts are to Parts of this Agreement; references to Clauses are to Clauses of Part II except where otherwise expressly stated; and references to any enactment include any re-enactments, amendments and
                                    extensions thereof.

                              

                      

                    

                    

                    

                    
                      6 of 28

                      
                        

                    

                    

                    

                    

                    

                    Interpretation:  the Managers, Owners and Guarantor acknowledge and agree that in the 
                        event of any inconsistency between the provisions of the Master  Agreement and this Agreement: (i) prior to and including the Effective Date (as defined in the Master Agreement) the provisions of the Master Agreement shall prevail;
                        and (ii) after the Effective Date the provisions of this Agreement shall prevail.

                    

                    

                    
                      
                        	2.	
                                Appointment of Managers

                              

                      

                    

                    
                      
                        	2.1	
                                With effect from the date stated in Box 5 of Part I (the “Date of Commencement”) and continuing unless and until terminated as provided herein, the Owners hereby appoint the Managers and the Managers hereby agree to act as the managers of the Vessel
                                    in respect of the Management Services.

                              

                      

                    

                    
                      
                        	2.2	
                                In performing any of the Management Services the Managers shall, as agents for and on behalf of the Owners, have authority to take such steps
                                    as the Managers may from time to time in their absolute discretion consider to be necessary to enable them to perform this Agreement in accordance with sound ship management practice.

                              

                      

                    

                    

                    

                    
                      
                        	3.	
                                Basic Services

                              

                      

                    

                    Subject to the terms and conditions herein provided, during the period of this Agreement
                        the Managers shall carry out, as agents for and on behalf of the Owners, the Basic Services in accordance with the following provisions of this Clause, save as otherwise provided in the Confirmation.

                    

                    

                    
                      
                        	3.1	
                                Crewing

                              

                      

                    

                    
                      
                        	3.1.1	
                                The Managers shall provide suitably qualified crew for the Vessel in accordance with current STCW requirements, provision of which includes
                                    but is not limited to the following functions: -

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                selecting and engaging Master, officers and ratings (hereinafter collectively referred to as the "Crew"); where the Owners make a complaint
                                    about any member of the Crew the Managers will promptly investigate the same and if it proves to be justified, replace the Crew member concerned as soon as practicable;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                ensuring that the applicable requirements of the law of the flag of the Vessel are satisfied in respect of manning levels, rank, qualification
                                    and certification of the Crew, and employment regulations including Crew’s tax, social insurance, discipline and other requirements;

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                ensuring that all members of the Crew have passed a medical examination with a qualified doctor certifying that they are fit for the duties
                                    for which they are engaged and are in possession of valid medical certificates which are valid for the duration of their service onboard the Vessel and issued in accordance with appropriate flag state requirements;

                              

                      

                    

                    
                      
                        	

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

                              

                      

                    

                    
                      
                        	

                              	(v)	
                                supervising the efficiency of the Crew and using the Manager’s standard crew appraisal system (written or electronic) and administration of
                                    all other Crew matters such as planning for the manning of the Vessel;

                              

                      

                    

                    
                      
                        	

                              	(vi)	
                                making payroll arrangements, including settling manning and agency expenses for the manning agents in the Crew's country of origin and, if
                                    applicable, payment of Severance Costs;

                              

                      

                    

                    
                      
                        	

                              	(vii)	
                                if requested by the Owners, conducting union negotiations and making agreed payments to unions;

                              

                      

                    

                    
                      
                        	

                              	(viii)	
                                operating the Managers' Drug and Alcohol Policy;

                              

                      

                    

                    
                      
                        	

                              	(ix)	
                                arranging Crew training in accordance with STCW (and as provided for in the budget), records of such training being maintained in the
                                    Manager’s standard format.

                              

                      

                    

                    
                      
                        	3.1.2	
                                Crew Claims

                              

                      

                    

                    The Managers will provide such information as requested by relevant brokers and/or P&I Club managers to
                        enable such brokers or managers to prepare and process all Crew insurance claims.

                    
                      
                        	3.1.3	
                                The Owners agree to implement in full the terms and conditions of employment under which the Crew are engaged by the Managers as agent for the
                                    Owners. The Owners shall be the employer of the Crew and under no circumstances shall the Managers be deemed to be the employer of the Crew. If the Vessel is covered by an ITF approved agreement or any other CBA/national
                                    agreement the Owners authorize the Managers to sign the ITF Special Agreement or any other CBA/national agreement on their behalf and agree to provide all information necessary for this purpose.

                              

                      

                    

                    
                      
                        	3.1.4	
                                Should the Owners require that their prior approval is given to the engagement of any member of the Crew, the Owners shall be obliged to give
                                    such approval within two working days of receipt from the Managers of reasonable details of the proposed appointee.

                              

                      

                    

                    
                      
                        	3.1.5	
                                In the event that any officers or ratings are supplied by the Owners or on their behalf, the Owners shall procure that they comply with the
                                    requirements of STCW and MLC. Owners will instruct such officers and ratings to obey all reasonable orders of the Managers.

                              

                      

                    

                    
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                    Any such officers or ratings shall, at the Owners’ cost, be trained in accordance with the Managers training
                        matrix.

                    
                      
                        	3.1.6	
                                The Managers shall procure that the Crew consent to processing of their personal data for legitimate business purposes. The Owners warrant
                                    that personal data of the Crew will be processed in accordance with the requirements of the Data Protection Act 1998 or any other applicable law or regulation.

                              

                      

                    

                    
                      
                        	3.1.7	
                                For the purposes of the MLC to the extent permitted, the Owners shall be deemed “Shipowner” and under no circumstances whatsoever,
                                    notwithstanding the Managers agreeing to carry out specific obligations under the MLC on behalf of the Owners, shall the Managers be deemed “Shipowner”. It is a condition of this Agreement that the Owners shall provide
                                    all Crew with MLC compliant working and living conditions.

                              

                      

                    

                    
                      
                        	3.1.8	
                                The Owners authorize the Managers to sign contracts of employment with the Crew as agent only for and on behalf of the Owners and/or to
                                    procure that a seafarer recruitment and placement service, in the country of domicile of a Crew member, signs contracts of employment with such Crew member as agent only for and on behalf of the Owners.

                              

                      

                    

                    
                      
                        	3.1.9	
                                All costs, including consultancy and advisory costs, related to compliance with tax and/or social security obligations shall at all times
                                    remain for the account of the Owners.

                              

                      

                    

                    

                    

                    
                      
                        	3.2	
                                Technical Management

                              

                      

                    

                    The Managers shall provide technical management which includes, but is not limited to the following
                        functions: -

                    
                      
                        	

                              	(i)	
                                provision of personnel to supervise the maintenance and general efficiency of the Vessel;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                arrangement and supervision of drydockings, repairs, modifications to and the upkeep of the Vessel to the standards agreed with the Owners
                                    provided that the Managers shall be entitled to incur the necessary expenditure to ensure that the Vessel will comply with all requirements and recommendations of the classification society and equipment manufacturers,
                                    and with the laws and regulations of the country of registry of the Vessel and of the places where she trades;

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                arrangement of periodic analysis of the bunker fuel, lubricating oils and chemicals by third parties (the costs being included in the Vessel’s
                                    running costs);

                              

                      

                    

                    
                      
                        	

                              	(iv)	
                                appointment of surveyors and technical consultants as the Managers may consider from time to time to be necessary;

                              

                      

                    

                    
                      
                        	

                              	(v)	
                                visits to the Vessel by superintendents or other staff of the Managers for up to 15 days in any calendar year (or pro rata for part of a
                                    calendar year) including time spent travelling;

                              

                      

                    

                    
                      
                        	

                              	(vi)	
                                notifying the Owners of any extraordinary and/or non-budgeted single item of expenditure in excess of US$ 50,000;

                              

                      

                    

                    
                      
                        	

                              	(vii)	
                                development, implementation and maintenance of an SMS and an SSP.

                              

                      

                    

                    

                    

                    
                      
                        	3.3	
                                Purchasing

                              

                      

                    

                    
                      
                        	3.3.1	
                                The Managers shall arrange for the supply of necessary victualling, stores, spares, provisions, lubricating oils and services (including
                                    drydock services) for the Vessel.   To enable the Managers to arrange such supplies on the most advantageous terms, the Managers shall be entitled to join with other parties in making arrangements for bulk purchase. The
                                    Managers are presently members of a contracting association and may join other similar associations in the future (any

                                    such existing or future association the “Association”) providing access to commodities and dry dock services globally. The Association negotiates on behalf of its members with selected suppliers the best available price,
                                    terms and conditions for the bulk purchase of goods and services for the marine industry with the aim of offering to members and their clients savings on vessel technical operating costs.

                              

                      

                    

                    
                      
                        	3.3.2	
                                Details of the suppliers contracted by the Association, and prices available for the Vessel at the time of supply shall be made available to
                                    Owners upon their request.  Owners acknowledge that all information relating to prices is confidential and undertake not to disclose the same to third parties without the prior written consent of the Managers.

                              

                      

                    

                    
                      
                        	3.3.3	
                                Where the Association has negotiated terms and conditions with suppliers of any stores, spares provisions, or lubricating oils ("Goods")
                                    and/or suppliers of services required by the Vessel, then the purchase of such Goods and services will, unless operational or other circumstances otherwise require, be undertaken with such suppliers on the basis of the
                                    terms and conditions negotiated by the Association.

                              

                      

                    

                    
                      
                        	3.3.4	
                                The Association will where practicable obtain a best price charter from suppliers that the prices for all Goods and services purchased by the
                                    Association’s members will be the lowest prices available.   If the Owners are able to obtain in good faith, on arms' length terms, on a true like

                              

                      

                    

                    

                    

                    
                      8 of 28

                      
                        

                    

                    

                    

                    for like basis (including quality, certification, timing, manufacturer, place of supply, etc, but ignoring
                        taxes and exchange rate fluctuations), the same Goods and/or services at a lower price than that obtained by the Association, the Owners will supply full details to the Managers who will promptly raise the matter with the
                        Association and pass on to Owners any refund obtained by the Association  from the supplier.

                    
                      
                        	3.3.5	
                                The Owners have received details from the Managers of the business rules and operating procedures adopted by the Association, including
                                    provisions related to fees that the Association will retain and that the Managers will earn as applicable, and agree to comply with such rules and operating procedures as the same may be amended from time to time.

                              

                      

                    

                    
                      
                        	3.3.6	
                                The Owners acknowledge that they are aware that prices obtained from suppliers require strict adherence to the payment terms agreed with
                                    suppliers (normally 45 days from date of invoice), and any failure by the Owners to provide the Managers with funds to settle sums due to suppliers on time will (in the absence of a good faith dispute) result in an
                                    immediate 5% surcharge, and monthly interest charges of 1% per month or part thereof being rigorously applied by suppliers.  The Managers are hereby expressly authorised to settle such surcharge and interest charges from
                                    any sums held by them on behalf of Owners. The Owners further acknowledge that they are aware if payments to suppliers are regularly made late, or if suppliers are not satisfied with Owners' credit rating, suppliers may
                                    refuse to supply at the prices and on the terms negotiated by the Association.

                              

                      

                    

                    

                    

                    
                      
                        	3.4	
                                Insurance

                              

                      

                    

                    
                      
                        	3.4.1	
                                If instructed by the Owners to arrange insurances on their behalf, the Managers shall appoint an Approved Broker, for the placing of
                                    insurances, and insurance claims handling, and, if applicable, casualty management.

                              

                      

                    

                    
                      
                        	3.4.2	
                                The Approved Broker shall place such insurances as the Owners shall have instructed or agreed, in particular as regards values, deductibles
                                    and franchises.  At each renewal the Approved Broker will liaise with the Owners:

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                as to any changes in insured values required;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                in respect of premiums, franchises and deductibles and any other changes for the new policy year; and

                              

                      

                    

                    (iii) to update the budget to reflect changes in insurance premiums.

                    
                      
                        	3.4.3	
                                 The Approved Broker shall compile such statistics and enter into negotiations with such brokers and P & I Club managers as they consider
                                    necessary or desirable in order to arrange for such insurances to be placed.

                              

                      

                    

                    
                      
                        	3.4.4	
                                Once insurances are placed the Approved Broker shall arrange for all cover notes to be checked and for all debit notes to be paid as required.

                              

                      

                    

                    
                      
                        	3.4.5	
                                Unless otherwise indicated by the Owners, the Managers shall provide such information as requested by the Approved Broker to enable the
                                    Approved Broker to handle and or procure the settling of all insurance, average and salvage claims in connection with the Vessel.

                              

                      

                    

                    
                      
                        	3.4.6	
                                The services provided by the Approved Broker to the Owners shall, at the Approved Broker’s absolute discretion, terminate on termination of
                                    this Agreement.

                              

                      

                    

                    

                    

                    
                      
                        	3.5	
                                Accounting and Budgeting

                              

                      

                    

                    
                      
                        	3.5.1	
                                The Managers shall:

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                maintain the records of all costs and expenditure incurred hereunder as well as data necessary or proper for the settlement of accounts
                                    between the parties;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                establish an accounting system for the Vessel and supply regular reports in accordance therewith in the Managers' standard format or, on
                                    agreement of an additional fee, such other form as may be mutually agreed in writing with the Owners.

                              

                      

                    

                    
                      
                        	3.5.2	
                                The Managers shall present to the Owners annually a budget for the following calendar year in the Managers' standard format or such other form
                                    as may be mutually agreed in writing.  The budget for the period following the date stated in Box 5 of Part I is set out in Part VI.  Subsequent annual budgets shall be prepared by the Managers and submitted to the
                                    Owners in each year in respect of the following year.

                              

                      

                    

                    
                      
                        	3.5.3	
                                The Owners shall notify the Managers of their acceptance and approval of the annual budget within 14 days of presentation and in the absence
                                    of any response the Owners shall be deemed to have accepted the said budget. In the event that the Owners do not accept an annual budget presented by the Managers within the period aforesaid and that budget is, in the
                                    opinion of the Managers, fair and reasonable, the Managers shall be entitled to terminate this Agreement by notice in writing, in which event this Agreement shall terminate on the expiry of a period of one (1) month from
                                    the date upon which such notice is given.

                              

                      

                    

                    
                      
                        	3.5.4	
                                The Managers shall produce a monthly comparison between budgeted and actual expenditure of the Vessel in the Managers' standard format or, on

                              

                      

                    

                    

                    

                    
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                    agreement of an additional fee, such other form as may be mutually agreed in writing.

                    
                      
                        	3.5.5	
                                This Clause 3.5 is subject to the provisions of Part VI.

                              

                      

                    

                    

                    

                    
                      
                        	3.6	
                                Software

                              

                      

                    

                    
                      
                        	3.6.1	
                                The Managers will, subject to the remaining provisions of this Clause 3.6, provide the Owners and the Vessel with software.

                              

                      

                    

                    
                      
                        	3.6.2	
                                The main features of the software at the date of this Agreement are:

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                comprehensive management software incorporating crew administration, vessel noon reporting, operational and port reporting, defect and
                                    deficiency reporting and performance monitoring;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                a ship to shore and shore to ship e-mail package providing cost efficient communications available to both Owners and their charterers; and

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                a computerized maintenance system including inventory control and automated purchase order handling. (An initial charge, to be agreed with
                                    Owners, may be made for the set-up of the maintenance database, depending on the system currently existing on board the Vessel).

                              

                      

                    

                    
                      
                        	3.6.3	
                                The costs for the software are set out in the Fee Schedule, and are included in the Vessel's running costs, as follows:

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                the license fee;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                maintenance, updates and upgrades;

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                provision of anti-virus software and regular upgrades;

                              

                      

                    

                    
                      
                        	

                              	(iv)	
                                operational manuals and regular updates;

                              

                      

                    

                    
                      
                        	

                              	(v)	
                                annual remote audit of the Vessel IT systems providing a system health check;

                              

                      

                    

                    
                      
                        	

                              	(vi)	
                                user manuals and training of the Crew in the use of the software; and

                              

                      

                    

                    
                      
                        	

                              	(vii)	
                                e-mail on board the Vessel.

                              

                      

                    

                    
                      
                        	3.6.4	
                                Such costs do not include:

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                the costs of appropriate hardware on board the Vessel;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                travel and other related costs for installation support of the Information System Software on board the Vessel;

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                the set-up cost of the data base for the maintenance system;

                              

                      

                    

                    
                      
                        	

                              	(iv)	
                                any specific reports specified by the Owners where new data/specialist reporting is required;

                              

                      

                    

                    
                      
                        	3.6.5	
                                Installation and set-up of the software will be undertaken on a date agreed between the Managers and the Owners having regard to the Vessel's
                                    schedule and the availability of the Managers' personnel.

                              

                      

                    

                    
                      
                        	3.6.7	
                                Solely for the duration of this Agreement and upon the request of the Owners, the Managers will provide access to software and data

                              

                      

                    

                    
                      
                        	3.6.8	
                                Software provided by the Managers under this section is under license and is protected by applicable copyright and patent laws. The Owners may
                                    not copy any of the software (except for back-up purposes only) or any written materials which accompany it, and may not sell, rent, lease, lend, sub-license, reverse engineer or distribute the software or such written
                                    materials.

                              

                      

                    

                    
                      
                        	3.6.9	
                                The Managers do not warrant that the software will meet the Owners' requirements or that the use or operation of the software will be
                                    uninterrupted or error free.

                              

                      

                    

                    

                    

                    
                      
                        	3.7	
                                Shipboard Oil Pollution Emergency Plan

                              

                      

                    

                    
                      
                        	3.7.1	
                                The Managers will prepare and obtain all necessary approvals for a shipboard oil pollution emergency plan (SOPEP) in a form approved by the
                                    Marine Environment Protection Committee of the International Maritime Organization pursuant to the requirements of Regulation 26 of Annex I of the International Convention for the Prevention of Pollution from Ships,
                                    1973, as modified by the Protocol of 1978 relating thereto, as amended (MARPOL 73/78).

                              

                      

                    

                    
                      
                        	3.7.2	
                                The SOPEP will be written in the English language and will be reviewed and updated from time to time.   If required the Managers will arrange
                                    for the translation of the SOPEP into another language, the cost of translation being recoverable in terms of Clause 8.4.

                              

                      

                    

                    
                      
                        	3.7.3	
                                The Managers will also undertake regular training of the Crew in the use of the SOPEP including drills to ensure that the SOPEP functions as
                                    expected and that contact and information details specified are accurate.

                              

                      

                    

                    

                    

                    
                      
                        	3.8	
                                OPA

                              

                      

                    

                    
                      
                        	3.8.1	
                                If instructed by the Owners, the Managers will:-

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                arrange for the preparation, filing and updating of a contingency Vessel Response Plan in accordance with the requirements of OPA and instruct
                                    the Crew in all aspects of the operation of such plan;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                identify and ensure the availability by contract or otherwise of a Qualified Individual, a Spill Management Team, an Oil Spill Removal
                                    Organization, resources having salvage, firefighting, lightering and, if applicable, dispersant capabilities, and public relations/media personnel to assist the

                              

                      

                    

                    

                    

                    
                      10 of 28

                      
                        

                    

                    

                    

                    Owners to deal with the media in the event of discharges of oil.

                    
                      
                        	3.8.2	
                                The Managers are expressly authorized as agents for the Owners to enter into such arrangements by Contract or otherwise as are required to
                                    ensure the availability of the services outlined in Clause 3.8.1.  The Managers are further expressly authorized as agents for the Owners to enter into such other arrangements as may from time to time be necessary to
                                    satisfy the requirements of OPA or other Federal or State laws.

                              

                      

                    

                    
                      
                        	3.8.3	
                                The Owners will pay the fees due to third parties providing the services described above together with a fee to the Managers for their
                                    services.  The level of fees will be included in the Vessel's running costs.

                              

                      

                    

                    
                      
                        	3.8.4	
                                On termination of this Agreement, the Vessel Response Plan and all documentation will be returned to the Managers at the expense of the
                                    Owners.

                              

                      

                    

                    

                    

                    
                      
                        	3.9	
                                Assistance with Sale of Vessel

                              

                      

                    

                    The Managers shall, if requested, provide Owners with technical assistance in connection with any sale of the
                        Vessel. The Managers will, if requested in writing by the Owners, comment on the terms of any proposed Memorandum of Agreement, but the Owners will remain solely responsible for agreeing the terms of any Memorandum of Agreement
                        regulating any sale.

                    

                    

                    
                      
                        	3.10	
                                Vessel trading in high risk areas

                              

                      

                    

                    In the event that the Vessel is to trade in a high risk area and in particular an area where piracy is
                        prevalent, the Owners and the Managers shall co-operate in order to:

                    
                      
                        	

                              	(i)	
                                Comply in full with any guidance or Best Management
                                    Practices to Deter Piracy issued by recognized maritime organizations and as may be revised from time to time and also with any similar guidance which may be issued for high risk areas.

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                Monitor daily guidance and updates provided by Maritime Security Centres established by national authorities in piracy areas and advise the
                                    Vessel accordingly.  

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                Comply with the Managers’ guidelines issued for transiting high risk areas as may be revised from time to time. The Managers’ guidelines set
                                    out their policy of full compliance with BMP and additional guidance and information on Self Protection Measures (SPM’s) including Citadels or Safe Areas. The Owners will be provided with a copy of the guidelines and
                                    costs for SPM’s will be included in the Vessel budget.

                              

                      

                    

                    
                      
                        	

                              	(iv)	
                                Where appropriate, ensure the Vessel follows any International Recommended Transit Corridors and complies with requirements for   an escorted
                                    convoy if available.   

                              

                      

                    

                    
                      
                        	

                              	(v)	
                                Monitor routing recommendations for transiting high risk areas as provided by charterers and insurers and review the same as part of the risk
                                    assessment carried out for the transit concerned.

                              

                      

                    

                    
                      
                        	

                              	(vi)	
                                Provide sufficient Self Protection Measures (SPM) appropriate to the vessel type, size and speed with a view to protecting the Crew as far as
                                    possible in the event of an attack.   To be determined by the risk assessment required by BMP for the transit concerned and before entering the high risk area.

                              

                      

                    

                    
                      
                        	

                              	(vii)	
                                Provide training for the Crew in BMP prior to transiting any high
                                      risk area.

                              

                      

                    

                    

                    

                    
                      
                        	4.	
                                Services provided by Sub-Managers

                              

                      

                    

                    
                      
                        	4.1	
                                The Managers hereby disclose to the Owners that, except as instructed otherwise by the Owners in writing, they will, as agents for and on
                                    behalf of the Owners, utilize the services of the Sub-Managers as set out in Part III (or as notified to Owners as set out in any revised Part III prepared by the Managers after the date hereof to record adjustments to
                                    the services being provided by associated companies from time to time under this Agreement).  The budgets provided pursuant to clause 3.5.2 will be provided on the basis that the services listed in Part III are provided
                                    by by Sub-Managers listed therein. The Sub-Managers will charge and retain for their own benefit usual remuneration for the provision of their services (whether in the form of commission or fees).

                              

                      

                    

                    
                      
                        	4.2	
                                The Owners hereby consent to the arrangements set out in Clause 4.1.

                              

                      

                    

                    

                    

                    
                      
                        	5.	
                                Managers' Obligations

                              

                      

                    

                    
                      
                        	5.1	
                                The Managers undertake to use their reasonable endeavours to provide the Management Services as agents for and on behalf of the Owners in
                                    accordance with sound ship management practice and to protect and promote the interests of the Owners in all matters relating to the provision of Management Services

                              

                      

                    

                    PROVIDED HOWEVER that the Managers in the performance of Management Services shall be entitled to have regard
                        to their overall responsibility in relation to all vessels which may from time to time be entrusted to their management and in particular, but without prejudice to the generality of the foregoing, the Managers shall be entitled to
                        allocate available supplies, manpower and services in such manner

                    

                    

                    
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                    as in the prevailing circumstances the Managers in their absolute discretion consider to be fair and
                        reasonable.

                    
                      
                        	5.2	
                                The Managers shall be deemed to be "the Company" as defined by the ISM Code, assuming the responsibility for the operation of the Vessel and
                                    taking over the duties and responsibilities imposed by the ISM Code and by the ISPS Code.

                              

                      

                    

                    
                      
                        	5.3	
                                The Managers shall procure and evidence (upon request of the Owners) ITIC or other equivalent forms of Errors and Omissions insurance for any
                                    liability arising out of this contract with particular reference to clause 11.2

                              

                      

                    

                    

                    

                    
                      
                        	6.	
                                Owners' Obligations

                              

                      

                    

                    
                      
                        	6.1	
                                The Owners shall pay all sums due to the Managers punctually in accordance with the terms of this Agreement.   Time shall be of the essence in
                                    respect of the payment of all such sums.

                              

                      

                    

                    
                      
                        	6.2	
                                The Owners shall procure, whether by instructing the Managers under Clause 3.4.1 or otherwise, that throughout the period of this Agreement
                                    the Vessel will be insured at the Owners' expense for not less than sound market value or entered for full gross tonnage, as the case may be, for:

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                usual hull and machinery risks (including but not limited to crew negligence) and excess liabilities;

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                protection and indemnity risks (including but not limited to pollution risks, diversion expenses and crew risks);

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                freight, defense and demurrage;

                              

                      

                    

                    
                      
                        	

                              	(iv)	
                                war risks (including but not limited to blocking and trapping, protection and indemnity, terrorism and crew risks); and

                              

                      

                    

                    
                      
                        	

                              	(v)	
                                in accordance with MLC, establish insurance to compensate Crew, and/or any officers or ratings supplied by the Owners or on their behalf, for
                                    monetary loss that they may incur as a result of the failure of a recruitment and placement service or Owners under the employment agreement, to meet its obligations to them; and

                              

                      

                    

                    
                      
                        	

                              	(vi)	
                                such other optional insurances as may be agreed (such as piracy, kidnap and ransom, loss of hire)

                              

                      

                    

                    in accordance with the best practice of prudent owners of vessels of a similar type to the Vessel, with sound
                        and reputable insurance companies underwriters or associations (provided that, protection and indemnity risks must be placed with a member of the International Group of P & I Clubs) ("the Owners' Insurances").

                    
                      
                        	6.3	
                                The Owners shall procure that all premiums and calls on the Owners’ Insurances are paid by their due date and that the Owners' Insurances name
                                    the Managers and any additional party designated by the Managers as a joint assured for protection and indemnity risks (including pollution risks) and a named assured on all other policies, with the benefit of full cover
                                    and full waiver of subrogation. The Owners shall, if applicable, provide the Managers with written evidence thereof to the reasonable satisfaction of the Managers on or prior to the Date of Commencement and/or on the
                                    date on which the Managers notify the Owners of the appointment of any additional party and within 7 days of each renewal date.  The Owners shall provide Managers with an appropriate certificate of insurance covering any
                                    and all liabilities under the MLC including but not limited to financial security in accordance with regulation 2.5.

                              

                      

                    

                    
                      
                        	6.4	
                                As between the Owners and the Managers, the Managers shall not be responsible for paying any premiums or calls arising in connection with such
                                    insurances.  On termination of this Agreement (howsoever occasioned) or where the Owners make a change in the P & I Club in which the Vessel is entered, the Owners shall procure that the Managers and any additional
                                    party designated by the Managers as a joint or named assured shall cease to be a joint or named assured and that they are released from and/or secured for any and all liability for premiums and calls that may arise in
                                    relation to the period of this Agreement. For the avoidance of doubt, it is agreed that the Owners shall be liable for all deductibles applying to any insurance policy.

                              

                      

                    

                    
                      
                        	6.5	
                                The Managers shall have the right to obtain confirmation direct from the brokers, underwriters and P & I Clubs through whom the Vessel’s
                                    insurances are arranged that all premiums calls and contributions due have been paid and that insurances meet the Owners' obligations under Clauses 6.3, 6.4 and 6.5. Where any premiums, calls and/or contributions are not
                                    paid, the Managers shall be entitled to pay the same from any funds held by them for the Owners and/or to terminate this Agreement forthwith by notice in writing.

                              

                      

                    

                    
                      
                        	6.6	
                                If the Owners are not the registered owners or the bareboat charterer of the Vessel they shall instruct the Managers in writing whether the
                                    Managers are to act as agents under this Agreement for the Owners or the registered owners of the Vessel. If the latter the Owners shall be required to provide to the Managers an appropriate form of authorization to the
                                    reasonable satisfaction of the Managers pursuant to which the Managers are authorized to act as agents for the registered owners.

                              

                      

                    

                    
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                        	6.9	
                                Upon request, the Owners shall provide the Managers with contact details of the relevant person at the mortgagee bank handling the Owners’
                                    account and hereby expressly provide the Managers with authority to contact the mortgagee bank at their discretion. Upon the Date of Commencement, the Owners will authorise the mortgagee bank to co-operate with the
                                    Managers and provide information to the Managers, upon their request.

                              

                      

                    

                    
                      
                        	6.10	
                                The Owners shall arrange for the provision of any necessary guarantee bond or other security.

                              

                      

                    

                    

                    

                    
                      
                        	7.	
                                Documentation

                              

                      

                    

                    
                      
                        	7.1	
                                On or prior to the Date of Commencement the Owners will deliver to the Managers:

                              

                      

                    

                    (i) a copy of the Owners’ certificate of incorporation,

                    (ii) full details of any resident registered agent for the registered owner of the Vessel,

                    (iii) if applicable, a copy of the bareboat charterparty pursuant to which the Owners are disponent owners of the Vessel,

                    (iv) in the case of a new vessel, the Owners will deliver a copy of the Building Contract and specification, and in the case of a
                        second hand vessel, a copy of the Memorandum of Agreement in terms of which the Owners acquired the Vessel.   The Owners shall be entitled to delete any confidential information (such as price) from the Building Contract or
                        Memorandum of Agreement,

                    (v) if the Owners are not the registered owners or the bareboat charterer of the Vessel, in addition to the
                        above, evidence satisfactory to the Managers of their beneficial interest in the Vessel and of their authorisation from the registered owners to enter into this Agreement,

                    (vi) the name and address of any mortgagee bank and the name and address of the bank through which the Owners
                        will pay funds due under this Agreement, if different.

                    In any event, the Managers reserve the right to request evidence satisfactory to them that the Owners and the
                        Guarantor are in goodstanding and that the person signing this Agreement on their behalf is duly authorized to do so.

                    
                      
                        	7.2	
                                The Owners will on request provide the Managers with full details, in writing, of the ultimate beneficial owners of their share capital.

                              

                      

                    

                    
                      
                        	7.3	
                                The Owners shall be obliged to obtain any required guarantee, bond or other security including, without limitation, the SCAC code and
                                    International Carrier Bond as required in order to access the US Bureau of Customs and Border Protection automated manifest system, as required by 68 Fed Reg 68139 and as amended, and USCG Certificate of Financial
                                    Responsibility for pollution. The Owners shall also be obliged to obtain any permits, licences or the like required to be obtained by an operator of a vessel including, without limitation, the US EPA vessel general
                                    permit.

                              

                      

                    

                    

                    

                    
                      
                        	8.	
                                Management Fee

                              

                      

                    

                    
                      
                        	8.1	
                                The Owners shall pay to the Managers the fees and expenses in the amounts stated in the Fee Schedule in respect of the Basic Services which
                                    shall be payable by equal monthly installments in advance, the first installment being due and payable one (1) month before the Vessel is handed over to the Managers and subsequent installments being payable monthly in
                                    advance.

                              

                      

                    

                    
                      
                        	8.2	
                                (i)  If the Managers' superintendents or other associated staff spend more than 15 days visiting the Vessel in any calendar year (or pro rata for part of a calendar year),
                                    including time spent travelling, visits and travelling time in excess of 15 days shall be charged at the rate of US$850 per man per day. (ii)  In addition to the fee referred to in clause 8.2(i), the Managers shall
                                    charge the Owners US$850 per man per day in respect of time spent by the Managers’ superintendents or other staff in providing technical assistance in connection with any casualty, breakdown, emergency or other average
                                    incident and, where a tanker management self-assessment vetting is required, the Owners agree to pay US$850 per day in compensation for the additional services provided by the Managers’ vetting manager and/or
                                    superintendents onshore or onboard the Vessel.

                              

                      

                    

                    
                      
                        	8.3	
                                If the Vessel is placed on time charter, any costs incurred in complying with charterers requirements (including, but not limited to,
                                    additional reporting requirements and visits to the charterers) will be paid by the Owners.

                              

                      

                    

                    
                      
                        	8.4	
                                The Managers shall, at no extra cost to the Owners, provide their own office accommodation, office staff and office stationery. The Owners
                                    shall reimburse the Managers for all expenses properly incurred under the terms of this Agreement on behalf of the Owners, including, without prejudice to the foregoing generality, postage and communication expenses,
                                    Crew Support Costs, vessel documentation, administrative expenses of the SOPEP and SSP, travelling expenses and other out of pocket expenses properly incurred by the Managers in pursuance of the Management Services. The
                                    Managers shall allocate among all vessels managed by them on a basis which the Managers consider to be fair and reasonable having regard to the trade of the vessels, the nationality of the crews and other relevant
                                    factors,

                              

                      

                    

                    
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                        	8.5	
                                In the event of the termination of this Agreement a sum equivalent to three (3) months Fees payable to the Managers according to the
                                    provisions of Clauses 8.1 shall, save as mentioned below, be paid no later than the effective date of termination. The only occasions on which the foregoing provision will not apply is: (i) where Clause 17.5 and Clause
                                    17.7 applies or (ii) where the Agreement is properly terminated by the Owners in terms of Clause 17.3 as a result of the Managers' default.

                              

                      

                    

                    
                      
                        	8.6	
                                Fees and expenses payable to the Managers will be reviewed annually with the Owners and shall be adjusted as a minimum by reference to the
                                    retail price index relevant to the nexus of services provided by the Managers. Where Management Services are wholly or partly provided by third parties, the fees and expenses therefore shall be adjusted immediately with
                                    the approval of the Owners (such approval not to be unreasonably withheld or delayed) to take account of increases in the cost of such services. The Managers will, however, use all reasonable endeavours in negotiations
                                    with such third parties to minimise such increases.

                              

                      

                    

                    
                      
                        	8.7	
                                All fees are exclusive of Value Added Taxes or other applicable taxes.

                              

                      

                    

                    
                      
                        	8.8	
                                Save as otherwise provided in this Agreement, all discounts and commissions obtained by the Managers in the course of the management of the
                                    Vessel shall be credited to the Owners.

                              

                      

                    

                    
                      
                        	8.9	
                                If as a result of collision, accident, emergency, or any other extraordinary circumstances, the Managers' workload is increased beyond that
                                    which the parties could reasonably have anticipated, the Managers shall be request (and the Owners shall approve, acting reasonably and without delay) reasonable additional remuneration having regard to the nature of the
                                    incident, the personnel and resources of the Managers deployed, and all other relevant circumstances including insurance recoveries.

                              

                      

                    

                    
                      
                        	8.10	
                                If the Owners decide to lay-up the Vessel and such lay-up lasts for more than three (3) months, an appropriate reduction of the management fee
                                    for the period exceeding the three (3) months until the Owners give written notice to remobilize the Vessel, shall be mutually agreed between the parties.

                              

                      

                    

                    

                    

                    
                      
                        	9.	
                                Payments and Management of Funds

                              

                      

                    

                    
                      
                        	9.1	
                                All sums paid to the Managers by or on behalf of the Owners and all moneys collected by the Managers under the terms of this Agreement (other
                                    than fees payable by the Owners to the Managers) shall be held to the credit of the Owners in a separate bank account or accounts which shall be operated by the Managers. The Owners agree to provide to the Managers all
                                    information and documentation required to comply with banking “know your customer” procedures.

                              

                      

                    

                    
                      
                        	9.2	
                                Where any sums howsoever arising and whether in respect of fees, budgeted expenditure, non-budgeted expenditure, other liabilities (present,
                                    future, liquidated or unliquidated) or expenses are owed  to the Managers in connection with the Vessel or the Fleet, the Managers shall be entitled but not obliged at any time or times to apply any sums standing to the
                                    credit of the accounts referred to in Clause 9.1 to settle such sums but shall in any event remain payable by the Owners to the Managers on demand.

                              

                      

                    

                    
                      
                        	9.3	
                                On or prior to the Date of Commencement the Owners shall provide to the Managers an amount equivalent to the prorated budgeted days
                                    expenditure from the Date of Commencement to the end of the first month in management.  In addition, all pre-delivery expenses are to be funded promptly by the Owners on request from the Managers.  The Owners shall
                                    provide an amount equivalent to 1/12 of the annual budget for the first full month on or prior to the 1st day of the first full month of the management period.  In subsequent months the Managers shall request
                                    amounts for the total anticipated monthly expenditure as laid out in clause 9.6.

                              

                      

                    

                    
                      
                        	9.4	
                                The Owners agree that on termination of this agreement payment of all sums outstanding under the terms of the agreement are to be made in
                                    advance of the Vessel leaving management.  The sum will include without prejudice to the generality of the foregoing, any amounts due to be paid to suppliers and other third parties (as evidenced, in the absence of
                                    manifest error, by an accounts payable listing produced by the Managers) and any outstanding accruals for invoices not yet received. The
                                    Owners irrevocably undertake to pay forthwith on request from the Managers any other sums which become due after the effective date of termination.

                              

                      

                    

                    
                      
                        	9.5	
                                The Managers shall each month request (by e-mail) from the Owners the funds required to run the Vessel for the ensuing month.   Such request
                                    will be for the total of the anticipated monthly expenditure, including, without prejudice to the generality of the foregoing, any sums due to be paid to suppliers and other third parties in the ensuing month (as
                                    conclusively evidenced, in the absence of manifest error, by an accounts payable listing produced by the Managers) and any outstanding accruals for invoices not yet received.   In addition, the Owners shall provide the
                                    Managers

                              

                      

                    

                    

                    

                    
                      14 of 28

                      
                        

                    

                    

                    

                    upon request with any funds which the Managers may request to cover any unbudgeted, unexpected, occasional or
                        extraordinary item of expenditure.   All such funds shall be received by the Managers within five (5) days after the receipt of such requests and shall be held to the credit of the Owners in the account(s) referred to in Clause
                        9.1.    The Managers shall be entitled to allocate such funds in such manner as the Managers determine, and it shall not be open to the Owners to direct the Managers otherwise and under no circumstances shall any funds received be
                        held on trust by the Managers for any specific purpose.

                    
                      
                        	9.6	
                                Notwithstanding anything contained herein, the Managers shall in no circumstances be required to use or commit their own funds to finance the
                                    provision of the Management Services and all payments due shall be made punctually to the Managers (and not any third party) in accordance with the terms of this Agreement in full without any deduction whatsoever.

                              

                      

                    

                    
                      
                        	9.7	
                                Where the Owners delay settling any sums due to the Managers the Owners shall pay interest thereon from the due date until the date of payment
                                    at 3% per cent over one (1) month LIBOR.

                              

                      

                    

                    
                      
                        	9.8	
                                In addition to the funds referred to above the Owners shall pay and/or reimburse the Managers in respect of all expenses incurred prior to the
                                    Date of Commencement including, but not limited to, riding crew wages, initial crew movements, crew standby expenses, communication and liaison expenses and ITF welfare contributions.

                              

                      

                    

                    

                    

                    
                      
                        	10.	
                                Managers' Right to Sub-Contract

                              

                      

                    

                    
                      
                        	10.1	
                                The Managers shall be entitled to procure performance of the Basic Services by their parent, subsidiary, associated companies, and/or Petro
                                    Services Ship Management SAM of 20, Avenue De Fontvieille, Le Coronado, 98000 Monaco and/or OSM Maritime AS, of Svinoddveien 12, 4836, Norway (hereinafter collectively called the "Sub-Managers") in accordance with the following provisions of this Clause 10.1:-

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                Manager shall remain fully liable for the due performance of their obligation under this Agreement but performance of all or any of the
                                    Managers' obligations by the Sub-Managers shall be and constitute full and sufficient performance by the Managers of their obligations hereunder; and

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                the Owners hereby agree with the Managers that insofar as the Sub-Managers perform the obligations of the Managers the Sub-Managers shall be
                                    entitled to the benefits of the provisions of Clause 11;

                              

                      

                    

                    

                    

                    
                      
                        	10.2	
                                The provisions of Clause 10.1 shall remain in force notwithstanding termination of this Agreement.

                              

                      

                    

                    

                    

                    
                      
                        	11.	
                                Responsibilities

                              

                      

                    

                    

                    

                    
                      
                        	11.1	
                                Force Majeure

                              

                      

                    

                    11.1.1    Neither the Owners nor the Managers shall be liable for any loss or damage or
                        total or partial failure to perform this Agreement (other than a failure to perform an obligation to pay money) caused wholly or partly by any circumstance or matter beyond the reasonable control of the relevant party, as the case
                        may be, including (without limiting the generality of the foregoing) acts of God, acts of governmental authorities, fires, strikes, floods, epidemics, quarantine restrictions, wars, insurrections, riots, violent demonstrations,
                        criminal offences, acts and omissions of civil or military authority or of usurped power, requisition or hire by any governmental or other competent authority, embargoes, acts of terror, and cyber attacks

                    11.1.2    Where a party seeks to rely upon a force majeure event as described in Clause
                        11.1.1 it will advise the other party of the force majeure event at the earliest opportunity and also advise that party of the likely duration of such force majeure situation.

                    

                    

                    
                      
                        	11.2	
                                Liability to Owners

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                Without prejudice to Clause 11.1, the Managers shall be under no liability whatsoever to the Owners for any loss, damage, delay or expense of
                                    whatsoever nature, whether direct or indirect, (including but not limited to loss of profit arising out of or in connection with detention of or delay to the Vessel) and howsoever arising in the course of performance of
                                    the Management Services

                              

                      

                    

                    UNLESS same is proved to have resulted solely from the negligence, gross negligence or wilful default of the
                        Managers or their employees or agents, or sub-contractors employed by them in connection with the Vessel, in which case (save where loss, damage, delay or expense has resulted from the Managers' personal act or omission committed
                        with the intent to cause same or recklessly and with knowledge that such loss, damage, delay or expense would probably result) the Managers' liability for each incident or series of incidents giving rise to a claim or claims shall
                        never exceed a total of ten times the annual Fees  payable hereunder for Basic Services.

                    
                      15 of 28

                      
                        

                    

                    

                    

                    
                      
                        	

                              	(ii)	
                                Notwithstanding anything that may appear to the contrary in this Agreement, the Managers shall not be liable for any of the acts or omissions
                                    of the Crew even if such acts or omissions are negligent, grossly negligent or wilful, except only to the extent that they are shown to have resulted solely from a failure by the Managers to discharge their obligations
                                    under Clause 3.1 in which case their liability shall be limited in accordance with the terms of this Clause 11.

                              

                      

                    

                    

                    

                    
                      
                        	11.3	
                                Indemnity - General

                              

                      

                    

                    Except to the extent and solely for the amount therein set out that the Managers would be liable under Clause
                        11.2, the Owners hereby undertake to keep the Managers and their employees, agents and sub-contractors indemnified and to hold them harmless against all actions, proceedings, claims, demands or liabilities whatsoever or howsoever
                        arising out of or in connection with the performance of this Agreement, including, but not limited to, any and all liability arising under the MLC, and against and in respect of all costs, loss, damages and expenses (including legal
                        costs and expenses on a full indemnity basis) which the Managers may suffer or incur (either directly or indirectly) in the course of the performance of this Agreement. The rights of indemnity hereunder shall accrue when any claim
                        or liability is first notified to the Managers or the Managers become aware of the same.

                    

                    

                    
                      
                        	11.4	
                                Indemnity - tax

                              

                      

                    

                    Without prejudice to the general indemnity set out in Clause 11.3, the Owners hereby undertake to keep the
                        Managers, their employees, agents and sub-contractors indemnified and to hold them harmless against all taxes, including customs duties, import VAT or any other indirect taxes, imposts and duties levied by any government as a result
                        of the trading or other activities of the Owners or the Vessel or the Fleet and that whether or not such taxes, imposts and duties are levied on the Owners or the Managers when acting as agents on behalf of the Owners.

                    

                    

                    
                      
                        	11.5	
                                "Himalaya"

                              

                      

                    

                    It is hereby expressly agreed that no employee or agent of the Managers (including every sub-contractor from
                        time to time employed by the Managers and the employees of such sub-contractors) 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 defence and immunity of whatsoever nature applicable to the Managers or to which the Managers are entitled hereunder shall
                        also be available and shall extend to protect every such employee or agent of the Managers acting as aforesaid and for the purpose of all the foregoing provisions of this clause 11 the Managers are or shall be deemed to be acting as
                        agent or trustee on behalf of and for the benefit of all persons who are or might be their servants or agents from time to time (including sub-contractors as aforesaid) and all such persons shall to this extent be or be deemed to be
                        parties to this Agreement.

                    

                    

                    
                      
                        	11.6.	
                                Consequential Loss

                              

                      

                    

                    Neither party shall be liable to the other for any Consequential Loss (as defined herein) whatsoever arising
                        out of or in connection with the performance or non-performance of this Agreement, in tort, statute or otherwise at law. “Consequential Loss” means (a) Consequential loss under the applicable law (whether in contract, tort
                        (including, but not limited to, negligence and misrepresentation), breach of statutory duty, or otherwise); and (b) Loss and/or deferral of production, loss of product, loss of use, loss of revenue, profit or anticipated profit (if
                        any), in each case whether direct or indirect to the extent that these are not included in sub-paragraph (a) herein and whether or not foreseeable at the date of commencement of the Agreement.

                    

                    

                    
                      
                        	11.7	
                                The provisions of Clause 11 shall remain in force notwithstanding termination of this Agreement.

                              

                      

                    

                    

                    

                    
                      
                        	12.	
                                Liens

                              

                      

                    

                    Managers shall only have the benefit of any liens arising by operation
                        of law or otherwise in the ordinary course of the management of the Vessel.

                    
                      
                        	13.	
                                Claims/Disputes

                              

                      

                    

                    

                    

                    
                      
                        	13.1	
                                If required the Managers shall handle and settle claims arising out of the Management Services hereunder and keep the Owners informed
                                    regarding any incident of which the Managers become aware which gives or may give rise to claims or disputes involving third parties.

                              

                      

                    

                    

                    

                    
                      16 of 28

                      
                        

                    

                    

                    

                    
                      
                        	13.2	
                                The Managers shall, as instructed by the Owners, bring or defend actions, suits or proceedings in connection with matters entrusted to the
                                    Managers according to this Agreement.

                              

                      

                    

                    
                      
                        	13.3	
                                The Managers shall have power to obtain legal or technical or other outside expert advice in relation to the handling and settlement of claims
                                    and disputes or all other matters affecting the interests of the Owners in respect of the Vessel.

                              

                      

                    

                    
                      
                        	13.4	
                                The Owners shall pay to the Managers a fee for time spent by the Managers in carrying out their obligations under Clause 13 and such fee shall
                                    be charged at the rate of US$850 per man per day of 8 hours.  Where the Approved Broker has been appointed pursuant to clause 3.4 for the placing of insurances no additional fee will be charged for insurance claims
                                    handling. In addition, any costs incurred by the Managers in carrying out their obligations according to Clause 13 shall be reimbursed by the Owners.

                              

                      

                    

                    
                      
                        	13.5	
                                The Owners acknowledge that the Managers use MTI Network for crisis management response and agree to reimburse any fees additional to the
                                    annual retainer of MTI Network (as included in the budget) which may be incurred.

                              

                      

                    

                    

                    

                    
                      
                        	14.	
                                Auditing, Records

                              

                      

                    

                    
                      
                        	14.1	
                                The Managers shall at all times maintain and keep true and correct accounts and shall make the same available at the Managers’ offices for
                                    inspection and auditing by the Owners at such times as may be mutually agreed. The Owners agree that the Managers shall be entitled to charge for their reasonable costs and expenses should the Owners require copies of
                                    supplier invoices and related documentation.

                              

                      

                    

                    
                      
                        	14.2	
                                The Managers shall be entitled to electronically archive all of the Vessels' records and arrange safe storage of the same, the costs being
                                    included in the Vessel's running costs.

                              

                      

                    

                    
                      
                        	14.3	
                                All accounting and other records relating the Vessel will be retained by the Managers in accordance with any applicable internal policy and
                                    subject to statutory requirements. For the period during which records are retained Owners may request a copy to be delivered to them at their own expense.

                              

                      

                    

                    
                      
                        	14.4	
                                The Managers may request and the Owners shall, in a timely manner, make available all documentation, information and records reasonably
                                    required by the Managers to enable them to perform the Management Services.

                              

                      

                    

                    

                    

                    
                      
                        	15.	
                                Inspection of Vessel

                              

                      

                    

                    The Owners shall have the right at any time to inspect the Vessel for any reason they consider necessary. 
                        The Owners will, where practicable, give reasonable notice to the Managers of their intention to visit the Vessel.

                    

                    

                    
                      
                        	16.	
                                Compliance with Laws and Regulations

                              

                      

                    

                    
                      
                        	16.1	
                                Owners and Managers undertake, represent and warrant that on concluding this Agreement neither they, Crew, nor any of their employees or
                                    agents is a Sanctioned Person.

                              

                      

                    

                    
                      
                        	16.2	
                                Owners and Managers warrant compliance with Global Trade Laws in all respects related directly or indirectly to the performance of this
                                    Agreement and undertake that they will not, through any act or omission, place the other in violation of Global Trade Laws.

                              

                      

                    

                    
                      
                        	16.3	
                                The parties will not do or permit anything to be done which might cause any breach or infringement of the laws and regulation of the country
                                    of registry of the Vessel, and of the places where she trades, provided always that each parties’ obligations under this clause will relate to matters in which they are in fact capable of fulfilling and on the
                                    understanding that each receive all necessary co-operation and information from the other and, in the case of the Managers, the funding from the Owners, provided for in this contract.

                              

                      

                    

                    
                      
                        	16.4	
                                Owners and Managers accept that the United States, the European Union, and other relevant authorities may from time to time establish or
                                    change the applicable Global Trade Laws and both parties acknowledge that such an event may render continued performance by either or both under this Agreement illegal or unlawful.  In that event and if either party
                                    terminates this Agreement due to a change in U.S., EU, or other applicable sanctions (including without limitation the “snap back” of U.S or EU sanctions with respect to Iran in connection with the Joint Comprehensive
                                    Plan of Action), both parties agree that (i) such termination shall not constitute a breach of this Agreement by the party terminating and the other party waives any and all claims against the terminating party for any
                                    loss, cost or expense, including consequential damages that the other party may incur by virtue of such termination; and (ii) both parties agreed to take reasonable steps to cooperate in winding down this Agreement.

                              

                      

                    

                    
                      
                        	16.5	
                                In this clause the following words and expressions shall have the meanings hereby assigned to them:

                              

                      

                    

                    “Embargoed Country” means any country or geographic region subject to comprehensive economic sanctions or
                        embargoes administered by OFAC or the European Union, including without

                    
                      17 of 28

                      
                        

                    

                    

                    

                    limitation Cuba, Iran, North Korea, Sudan, Syria, and the Crimea region.

                    “Global Trade Laws” means the U.S. Export Administration Regulations; the U.S. International Traffic in Arms
                        Regulations; the economic sanctions rules and regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) as well as any relevant Executive Orders; the economic sanctions rules and
                        regulations administered by the United Kingdom’s European Union (“E.U.”) Council Regulations on export controls, including Nos. 428/2009, 267/2012; other E.U. Council sanctions regulations, as implemented in E.U. Member States;
                        United Nations sanctions policies; all relevant regulations made under any of the foregoing; and other applicable economic sanctions or export and import control laws.

                    “Sanctioned Person” means at any time: (a) any person or entity included on: OFAC’s Specially Designated
                        Nationals and Blocked Persons List, the Sectoral Sanctions Identifications List, or the Foreign Sanctions Evaders List; the E.U.’s Consolidated List of Sanctions Targets; or any similar list; (b) any person resident in, or entity
                        organized under the laws of, an Embargoed Country; or (c) any person or entity majority-owned or controlled or acting on behalf of any of the foregoing.

                    

                    

                    
                      
                        	17.	
                                Duration of the Agreement

                              

                      

                    

                    

                    

                    
                      
                        	17.1	
                                Termination by Notice

                              

                      

                    

                    This Agreement shall come into effect on the Date of Commencement (except that the Managers are authorised,
                        prior to such date to do all such things in respect of which it shall be entitled to be paid or reimbursed pursuant to clause 9.9) and shall continue thereafter until terminated by either party giving to the other notice in writing,
                        in which event this Agreement shall, terminate on the expiry of a period of  twenty four (24)  months from the date upon which such notice is received unless terminated earlier in accordance with this Clause 17.    Where the Vessel
                        is not at a convenient port or place on the expiry of such period, this Agreement shall terminate on the subsequent arrival of the Vessel at a convenient port or place.

                    

                    

                    
                      
                        	17.2	
                                Termination by default - Owners

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                The Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing if any moneys requested by the Managers
                                    from the Owners or the owners of any vessel in the Fleet, shall not have been received in the Managers' nominated account within five (5) days of payment having been requested in writing by the Managers or if the Owners
                                    fail to comply to the reasonable satisfaction of the Managers with the requirements of clauses 6.3, 6.4 and 6.5 or if the Vessel is repossessed by a mortgagee.

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                If the Owners

                              

                      

                    

                    
                      
                        	

                              	(a)	
                                otherwise fail materially to meet their obligations hereunder for reasons within their control, or

                              

                      

                    

                    
                      
                        	

                              	(b)	
                                employ the Vessel in the carriage of contraband, blockade running or in an unlawful trade, or on a voyage or in a manner which, in the sole
                                    discretion of the Managers, is unduly hazardous or improper, or potentially unlawful or

                              

                      

                    

                    
                      
                        	

                              	(c)	
                                fail to comply with a request for information or cooperation, or to comply with any recommendation of the Managers which the Managers consider
                                    to be reasonable and non-compliance with which may affect the Managers’ reputation or its obligations under the ISM Code or any other applicable laws or regulations

                              

                      

                    

                    then the Managers may give written notice to the Owners specifying the default and requiring them to remedy
                        it.   In the event that the Owners fail to remedy such default (in the case of (a) above, if remediable) within a reasonable time to the reasonable satisfaction of the Managers, the Managers shall be entitled to terminate this
                        Agreement with immediate effect by notice in writing.

                    

                    

                    
                      
                        	17.3	
                                Termination by Default - Managers

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                If the Managers fail materially to meet their obligations under this Agreement for reasons within the control of the Managers, the Owners may
                                    give written notice to the Managers specifying the default and requiring them to remedy it as soon as practically possible.  In the event that the Managers fail to remedy such default, if remediable, within a reasonable
                                    time to the reasonable satisfaction of the Owners, the Owners shall be entitled to terminate this Agreement with immediate effect by notice in writing.

                              

                      

                    

                    
                      
                        	

                              	(ii)	
                                If the Managers are convicted of, or admit guilt for, a crime, then the Owners shall be entitled to terminate this Agreement with immediate
                                    effect by notice in writing.

                              

                      

                    

                    

                    

                    
                      
                        	17.4	
                                Liquidation

                              

                      

                    

                    This Agreement shall terminate forthwith in the event of an order being made or resolution passed for the
                        winding up, dissolution, liquidation or

                    

                    

                    
                      18 of 28

                      
                        

                    

                    

                    

                    bankruptcy of either party (otherwise than for the purpose of reconstruction or amalgamation) or if a
                        receiver, administrator or similar officer is appointed, or if it suspends payment, ceases to carry on business or makes any special arrangement or composition with its creditors.  The Managers shall be entitled to terminate this
                        Agreement forthwith in the event of an order being made or resolution passed for the winding up, dissolution, liquidation or bankruptcy of the owner of any vessel in the Fleet (otherwise than for the purpose of reconstruction or
                        amalgamation) or if a receiver or similar officer is appointed to such owner, or if such owner suspends payment, ceases to carry on business or makes any special arrangement or composition with its creditors.

                    

                    

                    
                      
                        	17.5	
                                Extraordinary Termination

                              

                      

                    

                    

                    

                    This Agreement shall be:

                    
                      
                        	(i)	
                                terminated in the case of a sale of the Vessel (“ET1”), and the date upon which the Vessel is to be treated as having been sold or otherwise disposed of shall be the date on which the Vessel’s owners cease to be the registered owners of the Vessel;

                              

                      

                    

                    

                    

                    
                      
                        	(ii)	
                                deemed to be terminated if the Vessel becomes a total loss or is declared as a constructive or compromised or arranged total loss or is
                                    requisitioned or has been declared missing, or the Vessel is bareboat chartered for a period of less than three (3) years, when the bareboat charter comes to an end (in either case, “ET2”);

                              

                      

                    

                    

                    

                    
                      
                        	(iii)	
                                terminated if the Vessel is bareboat chartered for a period of three (3) years or more, unless otherwise agreed, when the bareboat charter
                                    comes to an end (“ET3”); or

                              

                      

                    

                    

                    

                    
                      
                        	

                              	(iv)	
                                terminated if the Vessel is not delivered to the Owners within 100 days of the Effective Date (“ET4”).

                              

                      

                    

                    

                    

                    
                      
                        	17.6	
                                For the purpose of sub-clause 17.5 hereof:

                              

                      

                    

                    the Vessel shall not be deemed to be lost until either she has become an actual total loss or agreement has
                        been reached with her Underwriters in respect of her constructive, compromised or arranged total loss or if such agreement with her underwriters is not reached it is adjudged by a competent tribunal that a constructive loss of the
                        Vessel has occurred or a Notice of Abandonment is issued to underwriters.

                    

                    

                    17.7

                    

                    

                    
                      
                        	

                              	(i)	
                                In the event of a termination of this Agreement for an ET2 event or for any other reason except: (i) in the case of default by the Manager; or
                                    (ii) an ET1, ET3 or ET4 event, the Fees payable to the Managers according to the provisions of Clause 8.1 (Management Fee) shall continue to be payable for three (3) months.

                              

                      

                    

                    

                    

                    
                      
                        	

                              	(ii)	
                                In the event of a termination of this Agreement for an ET1, ET3 or ET4 event (and absent a Change of Control):

                              

                      

                    

                    

                    

                    
                      
                        	

                              	(aa)	
                                the Fees payable to the Managers according to the provisions of Clause 8.1 (Management Fee), shall continue to be payable for a further period
                                    of three (3) months as from the date of termination; and

                              

                      

                    

                    

                    

                    
                      
                        	

                              	(bb)	
                                the Owners are to provide written notice of termination to Managers at least three (3) months prior to the date of termination. Where Managers
                                    do not receive at least three (3) months prior written notice of the date of termination the Fees in (aa) shall be increased by three (3) months of Fees, reduced by the pro rata amount where prior written notice of the
                                    date of termination was given.

                              

                      

                    

                    

                    

                    
                      
                        	

                              	(iii)	
                                On or following a Change of Control, clauses (ii)(aa) and (bb) above shall not apply and in the event of a termination  of  this  Agreement 
                                    for  an  ET1,  ET3  or  ET4  event,  the  Fees  payable  to  the Managers according to the provisions of Clause 8.1 (Management Fee), shall continue to be payable for a further period of twenty-four (24) months as from
                                    the date of termination.

                              

                      

                    

                    

                    

                    
                      
                        	

                              	(iv)	
                                In the event of a termination of this Agreement for an ET4 event, no termination fee shall be due and payable hereunder where the Owners are
                                    required to pay an early termination fee as the same is described in the Master Agreement.

                              

                      

                    

                    

                    

                    
                      
                        	

                              	(v)	
                                All amounts due and payable under this Clause 17.7 shall be accelerated and immediately payable in one lump sum on the date of termination.

                              

                      

                    

                    

                    

                    
                      
                        	17.8	
                                The termination of this Agreement shall be without prejudice to all rights accrued due between the parties prior to the date of termination.

                              

                      

                    

                    

                    

                    
                      
                        	17.9	
                                All outstanding fees and other sums payable by the Owners require to be paid in full on or prior to termination, for whatever reason, of this
                                    Agreement.   Save where the Agreement is

                              

                      

                    

                    
                      19 of 28

                      
                        

                    

                    

                    

                    properly terminated by the Owners in accordance with Clause 17.3, the Managers shall be paid fees in
                        accordance with Clause 8.5 or Clause 17.7 where terminated in accordance with Clause 17.5. The Owners shall also pay on demand Severance Costs together with repatriation costs and any other expenses which arise directly as a result
                        of the termination.

                    

                    

                    
                      
                        	18.	
                                Confidentiality

                              

                      

                    

                    As between the Owners and the Managers, the Owners hereby agree and acknowledge that all
                        title and property in and to the management manuals of the Managers and other written material of the Managers concerning management functions and activities is vested in the Managers and the Owners agree not to disclose the same to
                        any third party and, on the termination of this Agreement, to return all such manuals and other material to the Managers.  For the purposes of this Clause reference to "the Managers" includes the Sub-Managers of the Managers and any
                        third parties providing Management Services.

                    
                      
                        	19.	
                                Suspension of Services

                              

                      

                    

                    If, at any time, the Owners have failed to pay the sums due and owing, as set out in
                        Clause 9, or are in breach of any other terms of this Agreement, in addition to the Managers’ rights pursuant to Clause 17 to terminate, the Managers shall, without prejudice to their liberty to terminate, be entitled to
                        withhold/suspend the performance of any and all of their obligations hereunder (including, but not limited to, removal of Crew) and shall have no responsibility whatsoever for any consequences thereof, in respect of which the Owners
                        hereby indemnify the Managers, and fees (as set out in the Fee Schedule) shall continue to accrue and any extra expenses resulting from such withholding shall be for the Owners’ account. To the extent the rights of Managers as set out in this Clause 19 are limited in any way by any undertaking Managers may have given or be required to give to any of the
                        banks financing the Vessel, Managers hereby reserve the right to approach any such bank at any time to discuss suspending services in the absence of continued nonperformance by the Owners.

                    
                      
                        	20.	
                                Law and Arbitration

                              

                      

                    

                    
                      
                        	20.1	
                                This Agreement shall be governed by English law and any dispute arising out of or in connection with this Agreement shall be referred to
                                    arbitration in London in accordance with the Arbitration Act 1996 and any amendment thereto or substitution therefor.

                              

                      

                    

                    
                      
                        	20.2	
                                The arbitration shall be conducted in accordance with the London Maritime Arbitrators' (LMAA) Terms current at the time when the arbitration
                                    is commenced.

                              

                      

                    

                    
                      
                        	20.3	
                                Save as mentioned below, the reference shall be to three arbitrators, one to be appointed by each party and the third by the two so
                                    appointed.   A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment to the other party requiring the other party to appoint its arbitrator within 14 days of
                                    that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and give 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 the 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 as binding as if he had been appointed by agreement.

                              

                      

                    

                    
                      
                        	20.4	
                                In cases where neither the claim nor any counterclaim exceeds the sum of US$ 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.

                              

                      

                    

                    
                      
                        	20.5	
                                Except to the extent provided for in clauses 10 and 11 no third party shall have the right to enforce any term of this Agreement.

                              

                      

                    

                    

                    

                    
                      
                        	21.	
                                Amendments to Agreement

                              

                      

                    

                    The Managers reserve the right to make such changes to this Agreement as they shall
                        consider necessary to take account of regulatory changes which come into force after the date hereof and which affect the operation of the Vessel.  Such changes will be notified in writing to the Owners and will come into force on
                        notification or on the date on which such regulatory or other changes come into effect (whichever shall be the later).

                    
                      
                        	22.	
                                Time Limit for Claims

                              

                      

                    

                    Any and all liabilities of either party to the other arising under this Agreement or
                        otherwise in relation to the Vessel (except in the case of fraud) shall be deemed to be waived and absolutely barred on the relevant date unless prior to the relevant date written particulars of any claim

                    
                      20 of 28

                      
                        

                    

                    

                    

                    (giving details of the alleged breach in respect of which such claim is made and a
                        preliminary statement of the amount claimed) have been intimated in writing by the claimant  by the relevant date, and any such claim shall be deemed (if it has not previously been satisfied, settled or withdrawn) to have been
                        withdrawn unless arbitration proceedings have been commenced under Clause 20 prior to the expiry of six (6) months after the relevant date.  For the purposes of this Clause 22, the "relevant date" is one year after the date of
                        termination, for whatever reason, of this Agreement.

                    
                      
                        	23.	
                                Condition of Vessel

                              

                      

                    

                    The Owners acknowledge that they are aware that the Managers are unable to confirm that the Vessel, its
                        systems, equipment and machinery are free from defects, and agree that the Managers shall not in any circumstances be liable for any losses, costs, claims, liabilities and expenses which the Owners may suffer or incur resulting from
                        pre-existing or latent deficiencies in the Vessel, its systems, equipment and machinery.

                    

                    

                    
                      
                        	24.	
                                Notices

                              

                      

                    

                    
                      
                        	24.1	
                                Any notice or other communication under or in relation to this Agreement (a "Communication") may be sent by fax, registered or recorded mail,
                                    by personal delivery or electronically.

                              

                      

                    

                    
                      
                        	24.2	
                                The addresses of the parties for service of a Communication shall be as stated in Boxes 6 and 7 respectively of Part I.

                              

                      

                    

                    
                      
                        	24.3	
                                A Communication shall be deemed to have been delivered and shall take effect:

                              

                      

                    

                    
                      
                        	

                              	(i)	
                                in the case of a fax or email, on the day of transmission; and

                              

                      

                    

                    
                      
                        	

                              	(iii)	
                                if delivered personally or sent by registered or recorded mail at the time of delivery.

                              

                      

                    

                    

                    

                    
                      
                        	25.	
                                Staff Loyalty

                              

                      

                    

                    The Owners shall not and shall procure that their parent, subsidiary and associate companies shall not,
                        without the written consent of the Managers, during the course of this Agreement or for a period of six (6) months following termination directly or indirectly offer any employment to any employee of the Managers engaged in
                        providing Management 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. In the event that the Managers agree to any of its employees accepting an offer of employment as aforesaid, the Owners shall pay to the Managers a sum equivalent to 25% of the new annual salary of that
                        employee, payable within seven days of the date of the written agreement of the Managers. Such payment shall be construed as liquidated damages and not as a penalty, being the parties agreed reasonable estimate of the Managers’
                        loss.

                    

                    

                    
                      
                        	26.	
                                Entire Agreement

                              

                      

                    

                    
                      
                        	26.1	
                                Any additional clauses attached hereto together with the Master Agreement, Confirmation, any subsequent, addenda, schedules, appendices or otherwise, shall be construed as an integral part of this
                                      Agreement and shall be interpreted accordingly. This Agreement constitutes the entire agreement and understanding of the parties. It supersedes any previous agreement, understanding, discussion or exchange between the
                                      parties (or their representatives) relating to the equipment or service which now forms the subject matter of this Agreement.

                              

                      

                    

                    
                      
                        	26.2	
                                By signing this Agreement both parties agree and represent to each other that neither party is entering into this Agreement as a result of, or in reliance on, any warranty, representation,
                                      statement, agreement or undertaking of any kind whatsoever (whether in writing or oral and whether made negligently or innocently) made by any person other than as expressly set out in this Agreement as a warranty and
                                      identified as such.

                              

                      

                    

                    
                      
                        	26.3	
                                For the avoidance of doubt, it is intended and agreed that any liability which might otherwise have arisen in tort for negligent misrepresentation or for negligent or innocent
                                      misrepresentation, whether at common law or under statue, is hereby excluded and any remedy that might otherwise have so arisen is forsworn.

                              

                      

                    

                    

                    

                    
                      
                        	27.	
                                Partial Validity

                              

                      

                    

                    If any provision of this
                        Agreement is or becomes or is held by any arbitrator or other competent body to be illegal, invalid or unenforceable in any respect under any law or jurisdiction, the provision shall be deemed to be amended to the extent necessary
                        to avoid such illegality, invalidity or unenforceability, or, if such amendment is not possible, the provision shall be deemed to be deleted from this Agreement to the extent of such illegality, invalidity or unenforceability and
                        the remaining provisions shall continue in full force and effect and shall not in any way be affected or impaired thereby.

                    

                    

                    
                      
                        	28.	
                                Performance Guarantee

                              

                      

                    

                    In consideration of the Managers entering into this Agreement with the Owners and for
                        other good and valuable consideration, the Guarantor

                    
                      21 of 28

                      
                        

                    

                    

                    

                    unconditionally and irrevocably guarantees to the Managers as primary obligor and not merely as surety the
                        due and punctual observance and performance of all the obligations of the Owners under this Agreement. It is agreed in connection with such guarantee, that:

                    (i)  the Managers shall
                        not be bound to exhaust their recourse against the Owners before calling on the Guarantor to perform any outstanding obligation of the Owners under this Agreement;

                    (ii)  this shall be a
                        continuing guarantee which shall remain in force until termination of this Agreement and thereafter for so long as any claim arising from or related to the breach by the Owners of any and all of their obligations and liabilities
                        under this Agreement remains outstanding and are not prescribed or time barred under any applicable statute or law. This guarantee shall not be affected by any variation of the terms of this Agreement, or by any other act, omission,
                        matter or thing which, but for this provision, might operate to release or exonerate the Guarantor from its obligations as guarantor in whole or in part;

                    (ii) the Guarantor’s
                        obligations hereunder shall be in additional to and shall not in any way be prejudiced by any other guarantees granted or covenants assumed now or in the future by the Guarantor in favour of the Managers with respect to any claim
                        the Managers has or may have against the Owners or the Guarantor under either of the Master and/or this Agreement.

                    (ivi) the Guarantor, acting for itself and its successors and assigns, hereby expressly and irrevocably consents to and submits to be bound by the
                        provisions of Clause 20 hereof.

                    
                      
                        	29.	
                                Non Waiver

                              

                      

                    

                    No failure to exercise nor any delay in exercising any right, power, privilege or remedy under this Agreement
                        shall in any way impair or affect the exercise thereof or operate as a waiver in whole or in part. No single or partial exercise of any right, power, privilege or remedy under this Agreement shall prevent any further or other
                        exercise thereof or the exercise of any other right, power, privilege or remedy.

                    

                    

                    
                      22 of 28

                      
                        

                    

                    SHIP MANAGEMENT AGREEMENT
                            - PART III

                    

                    

                    SERVICES PROVIDED BY
                            SUB-MANAGERS

                    

                    

                     

                    

                    1. Travel Management on a 24hour basis:

                    

                    

                    Services include controls for verifying quotes, integrated billing system, consultancy, cost control and account management,
                        visa assistance, corporate travel.

                    

                    

                    2. Catering

                    

                    

                    Services include cargo ship catering, consulting for start-up, new building, and operational review, purchasing and logistics.

                    

                    

                    3. Technical analysis of vessel performance

                    

                    

                    Services include the monitoring of vessel performance by collecting and analysing the main parameters affecting fuel
                        consumption: main engine (ME) consumption, condition of hull and propeller, sludge production and itinerary management in terms of speed and rpm.

                    The above findings are compiled in monthly reports containing trends and comparisons to optimum performance and to
                        sister/similar vessels, if any, with the purpose of improvement in speed and consumption, cleaning of hull/propeller, operation of vessel within charterparty limits and provision of documents in support of commercial claims.

                    The service is tailor-made to suit the existing recording equipment available onboard and will include suggestions for
                        improvement fully supported by ROI analysis

                    The technical performance of the ME is analysed in terms of ME load balance, fuel injection pump, air cooler, Turbo Charge and
                        Economiser conditions with the purpose of improvement in fuel and lube oil consumption and the streamlining spare parts procurement.

                    

                    

                    4.  Agency

                    

                    

                    Services include protecting, husbandry and charterers’ Agents, port services, spares, logistics, crew and offshore support for
                        Crew movements when and where available.

                    

                    

                    5. Underwater services

                    

                    

                    Routine underwater inspections, propeller and hull cleaning. Underwater repair and maintenance as required.

                    

                    

                    6. Engineering services and consultancy

                    

                    

                    Services include naval architecture, engineering, design, emergency and oil spill response services, laser scanning, new
                        construction supervision and project management services.

                    

                    

                    7. Repairs and Installations

                    

                    

                    Provision of riding gangs, turnkey repairs and installations, engine overhauling, electrical installations, annual services and
                        NDT testing.

                    
                      23 of 28

                      
                        

                    

                    

                    

                    8. Insurance

                    Services include arranging insurance and managing claims in accordance with clause 3.4 of this ship management agreement, on
                        such terms as the Owners shall have instructed or agreed, in particular regarding conditions, insured values, deductibles, franchises and limits of liability

                    

                    

                    9. Salvage and oil spill response

                    

                    

                    Services include global emergency response in way of towing, marine firefighting, damage stability, salvage, spill response
                        including statutory compliance services.

                    

                    

                    

                    

                    

                    

                    SHIP MANAGEMENT AGREEMENT
                            - PART IV

                    

                    

                    FEE SCHEDULE

                    

                    

                     SHIP NAME:

                    

                    

                     

                    

                    

                    

                    

                    

                    	
                            BASIC

                                    SERVICES (Clause 3 of Part II)

                          	
                            Amount

                          	
                            Frequency

                          
	
                            (a) Fees

                          	 	 
	
                            Management Fee

                          	
                            US$156,000 per annum

                          	
                             Pro rata monthly in advance

                          
	
                            SECAT Retainer Fee

                          	
                            $[●] per month

                          	
                             Monthly in advance

                          
	
                            Crew Management Fees:

                          	
                            $[●] per month

                             

                          	
                             Monthly in advance

                             

                          
	
                            (b) Expenses

                          	 	 
	
                             

                            Management Expenses: Fixed Cost invoice – Certain  Overheads as per Budget (Part VI) )

                             

                            Crewing Expenses:  Fixed Cost invoice – Crewing Expenses (Part VI)

                             

                          	
                             

                            [TBD]

                             

                             [TBD]

                          	
                             

                             Monthly in advance

                              

                            

                             Monthly in advance

                          
	 	 	 
	 	 	 

                    

                    

                    
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                    SHIP MANAGEMENT AGREEMENT
                            - PART V

                    

                    

                    FLEET DETAILS

                    

                    

                    

                    

                    

                    

                    
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                    SHIP MANAGEMENT AGREEMENT
                            - PART VI

                    

                    

                    INITIAL BUDGET

                    

                    

                    Crew

                    

                    

                    
                      
                        	

                              	I.	
                                The following “Crewing Expenses” are assessed as a fixed cost based on the agreed budget and subject to the Vessel’s crew complement and
                                    trading area remaining unchanged (Fixed Cost Invoice – General Crewing Expenses):

                              

                      

                    

                    

                    

                    Recruitment costs to include:

                    Medical costs

                    Training costs

                    Visa costs

                    Medical insurance costs

                    Domestic travel

                    Wage related union costs

                    Flag required licenses

                    MSO communications

                    Bank charges (in relation to allotments)

                    Working gear

                    

                    

                    If the Vessel’s Crew complement and/or trading area are changed with the result that the abovementioned
                        component costs increase the Owners agree that the fixed cost shall be revised as may be mutually agreed.

                    

                    

                    The Managers shall be subject to the auditing and control requirements of the Owner but shall not be required
                        on a regular basis to provide to the Owners any invoices or related documentation for items within the Fixed Cost Invoice.

                    

                    

                    
                      
                        	

                              	II.	
                                Other costs are charged on an itemized basis including:

                              

                      

                    

                    Crew Travel

                    Crew Wages

                    ITF fee

                    Victualling

                    D&A testing

                    Crew welfare

                    

                    

                    

                    

                    Insurance

                    Hull & Machinery Premiums

                    Increased Value Premium

                    War Risks Premium

                    Freight, Defence & Demurrage

                    P&I Premiums

                    Loss of Hire Insurances

                    

                    

                    Technical

                    Stores

                    Spares

                    Lub Oils

                    Surveys & Services

                    
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                    Repairs

                    

                    

                    Safety & Risk

                    

                    

                    Administration / Overheads

                    Registration Expenses

                    

                    

                    Management Fees

                    

                    

                    “Management Expenses” as per Cl. 8.4

                    If fixed management expenses are agreed in the budget, the Managers shall not be required to provide to the Owners any invoices
                        or related documentation for items within the Fixed Management Expenses Invoice.

                    

                    

                    Other Costs

                    

                    

                    OPERATING COSTS EXCL. DRYDOCKING

                    

                    

                    Drydocking

                    Dry docking Provision

                    Extraordinary M&R

                    

                    

                    OPERATING COSTS INCL. DRYDOCKING

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    

                    
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                    SHIP MANAGEMENT AGREEMENT -
                            PART VII

                    

                    

                    CHANGE OF CONTROL DEFINITION NAO

                    (A) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of
                        merger or consolidation), in one or a series of related transactions, of all or substantially all of NAO’s or its subsidiaries’ assets, taken as a whole, to any Person other than to a Permitted Owner;

                    (B) an order made for, or the adoption by the Board of Directors of a plan of, liquidation or dissolution
                        of NAO;

                    (C) the consummation of any transaction (including any merger or consolidation) the result of which is that
                        any Person, other than a Permitted Owner, becomes the beneficial owner, directly or indirectly, of a majority of NAO’s Voting Securities, measured by voting power rather than number of shares;

                    (D) if, at any time, NAO becomes insolvent, admits in writing its inability to pay its debts as they become
                        due, is adjudged bankrupt or declares bankruptcy or makes an assignment for the benefit of creditors, or makes a proposal or similar action under the bankruptcy, insolvency or other similar laws of any applicable jurisdiction or
                        commences or consents to proceedings relating to it under any reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction;

                    (E) the consolidation of NAO with, or the merger of NAO with or into, any Person, other than a Permitted
                        Owner or the consolidation of any Person, other than a Permitted Owner, with, or the merger of any Person, other than a Permitted Owner, with or into, NAO, in any such event pursuant to a transaction in which any of the common stock
                        outstanding immediately prior to such transaction are converted into or exchanged for cash, securities or other property or receive a payment of cash , securities or other property, other than any such transaction where NAO’s Voting
                        Securities outstanding immediately prior to such transaction are converted into or exchanged for Voting Securities of the surviving or transferee Person constituting a majority (measured by voting power rather than number of shares)
                        of the outstanding Voting Securities of such surviving or transferee Person immediately after giving effect to such issuance; or

                    (F) a change in directors after which a majority of the members of the Board of Directors are not directors
                        who were either nominated by, appointed by or otherwise elected with the approval of current board members at the time of such election.

                    “Affiliates” means, with respect to any Person as at any particular date, any other Persons that directly
                        or indirectly, through one or more intermediaries, are Controlled by, Control or are under common Control with the Person in question, and Affiliate means any one of them.

                    “Control” or “Controlled” means, with respect to any Person, the right to elect or appoint, directly or
                        indirectly, a majority of the directors of such Person or a majority of the Persons who have the right, including any contractual right, to manage and direct the business, affairs and operations of such Person, or the possession of
                        the power to direct or cause the direction of the management and policies of a Person, whether through ownership of Voting Securities, by contract, or otherwise.

                    “Governmental Authority” means any domestic or foreign government, including any federal, provincial,
                        state, territorial or municipal government, any multinational or supranational organization, any government agency (including the U.S. Securities and Exchange Commission), any tribunal, labor relations board, commission or

                    
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                    stock exchange (including the New York Stock Exchange), and any other authority or organization exercising
                        executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, government.

                    “NAO” shall mean Nordic American Offshore Ltd., a company incorporated under the laws of Bermuda and having
                        its registered office at LOM Building, 27 Reid Street, Hamilton HM 11, Bermuda.

                    “Permitted Owner” means (i) Mackenzie Financial Corporation, a corporation organized and existing under the
                        laws of Ontario (“Mackenzie”) or the funds and accounts set out in Schedule A to the common stock purchase agreement dated 29
                        March 2019 entered into between SOI, Mackenzie and NAO,  (ii) Scorpio Offshore Investments Inc., a corporation organized and existing under the laws of the Republic of the Marshall Islands (“SOI”), and (iii) any Affiliate of SOI.

                    “Person” shall have the meaning ascribed to it as such term is used in Section 13(d)(3) of the Securities
                        Exchange Act, as amended.

                    “Voting Securities” means securities of all classes of a Person entitling the holders thereof to vote on a
                        regular basis in the election of members of the board of directors or other governing body of such Person.

                    

                    

                    

                    

                  

                  

                  

                

              

            

          

        

      

    

  

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