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Exhibit 10(i)  

                 Twelfth AMENDMENT TO AMENDED AND
RESTATED LOAN AND SECURITY AGREEMENT
THIS TWELFTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (“Twelfth Amendment”) is made as of this _18_ day of February, 2011, by and among BANK OF AMERICA, N.A., a national banking association (“Bank of America”) with an office at 135 South LaSalle Street, 4th Floor, Chicago, Illinois 60603, individually as a Lender and as Agent (“Agent”) for itself and any other financial institution which is or becomes a party hereto (each such financial institution, including Bank of America, is referred to hereinafter individually as a “Lender” and collectively as the “Lenders”), the LENDERS and MFRI, INC., a Delaware corporation (“MFRI”), MIDWESCO FILTER RESOURCES, INC., a Delaware corporation (“Midwesco”), PERMA-PIPE, INC., a Delaware corporation (“Perma-Pipe”), THERMAL CARE, INC., a Delaware corporation (“Thermal Care”), TDC FILTER MANUFACTURING, INC., a Delaware corporation (“TDC”), MIDWESCO MECHANICAL AND ENERGY, INC., a Delaware corporation (“Mechanical”) and FREEZONE HOLDINGS LIMITED LIABILITY COMPANY, a Delaware limited liability company (“Freezone”) and PERMA-PIPE CANADA, INC., a Delaware corporation (“Perma-Pipe Canada”).  Capitalized terms used in this Agreement have the meanings assigned to them in Appendix A, General Definitions.  Accounting terms not otherwise specifically defined herein shall be construed in accordance with GAAP consistently applied.  MFRI, Midwesco, Perma-Pipe, Thermal Care, TDC, Mechanical, Freezone and Perma-Pipe Canada are sometimes hereinafter referred to individually as a “Borrower” and collectively as “Borrowers”.
WHEREAS, Borrowers (other than Mechanical, Freezone and Perma-Pipe Canada), Agent, and the Lender signatories thereto hereto entered into that certain Amended and Restated Loan and Security Agreement dated December 15, 2006, as amended by that First Amendment to Amended and Restated Loan and Security Agreement dated February 28, 2007 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Second Amendment to Amended and Restated Loan and Security Agreement dated August 28, 2007 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Third Amendment to Amended and Restated Loan and Security Agreement dated December 13, 2007 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Fourth Amendment to Amended and Restated Loan and Security Agreement dated April 17, 2008 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Fifth Amendment to Amended and Restated Loan and Security Agreement dated September 7, 2008 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Sixth Amendment to Amended and Restated Loan and Security Agreement dated January 12, 2009 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Seventh Amendment to Amended and Restated Loan and Security Agreement dated August 5, 2009 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lender, by that certain Eighth Amendment to Amended and Restated Loan and Security Agreement dated December 9, 2009 by and among Borrowers, Agent and Lenders, by that certain Ninth Amendment to Amended and Restated Loan and Security Agreement dated April 13, 2010 by and among Borrowers, Agent and Lender and by that certain Tenth Amendment to Amended and Restated Loan and Security Agreement dated May 11, 2010 by and among Borrowers, Agent and Lenders and by such certain Eleventh Agreement to Amended and Restated Loan and Security Agreement dated October 5, 2010 by and among borrower Agent and Lender (said Amended and Restated Loan and Security Agreement, as amended from time to time, the “Loan Agreement”);
NOW, THEREFORE, in consideration of the following terms and conditions, the parties agreed as follows:
1.Definitions.  Except as otherwise specifically provided for herein, all capitalized terms 

 

Exhibit 10(i)  

used herein without definition shall have the meanings contained in the Loan Agreement.
2.Amended Definitions.  The definitions of “Borrowing Base” and “Eligible Account” contained in Appendix A to the Loan Agreement are hereby deleted and the following are inserted in their stead:
*    *    *
“Borrowing Base - as at any date of determination thereof, an amount equal to the lesser of:
(i)    the Revolving Credit Maximum Amount minus the unpaid principal balance of the Term Loan; or
(ii)    an amount equal to:
(x)    the sum of:
(a)    eighty five percent (85%) of the net amount of Eligible Accounts (other than Eligible Accounts arising from Short Term Projects) outstanding at such date; plus 
(b)    the lesser of Seven Million Dollars ($7,000,000) (Eleven Million Dollars ($11,000,000) for the period between February 1, 2011 and September 30, 2011) or eighty five percent (85%) of the net amount of Eligible Accounts arising from Short Term Projects outstanding at such date; plus
(c)    the least of (1) Sixteen Million Dollars ($16,000,000), (2) fifty five percent (55%) of the value of Eligible Inventory at such date or (3) eighty five percent (85%) of the NOLV Percentage of the value of Eligible Inventory as of such date.
The limitations set forth in the immediately preceding sentence and each of the advance rates set forth above may be adjusted downward by Agent, as Agent shall deem necessary or appropriate in its reasonable credit judgment.  For purposes hereof, (1) the net amount of Eligible Accounts at any time shall be the face amount of such Eligible Accounts less any and all returns, rebates, discounts (which may, at Agent's option, be calculated on shortest terms), credits, allowances or excise taxes of any nature at any time issued, owing, claimed by Account Debtors, granted, outstanding or payable in connection with such Accounts at such time and (2) the amount of Eligible Inventory shall be determined on a first-in, first-out, lower of cost or market basis in accordance with GAAP.”
*    *    *
Eligible Account - an Account arising in the ordinary course of the business of any Borrower from the sale of goods or rendition of services which Agent, in its sole judgment, exercised in a commercially reasonable manner, deems to be an Eligible Account.  Without limiting the generality of the foregoing, no Account shall be an Eligible Account if:
(i)    it arises out of a sale made or services rendered by a Borrower to a Subsidiary of any Borrower or an Affiliate of any Borrower or to a Person controlled by an Affiliate of any Borrower; or
(ii)    it remains unpaid more than 90 days after the original invoice date shown on 

 

Exhibit 10(i)  

the invoice; or
(iii)    the total unpaid Accounts of the Account Debtor exceed 20% of the net amount of all Eligible Accounts, but only to the extent of such excess; or
(iv)    any covenant, representation or warranty contained in the Agreement with respect to such Account has been breached; or
(v)    the Account Debtor is also a creditor or supplier of a Borrower or any Subsidiary of any Borrower, or the Account Debtor has disputed liability with respect to such Account, or the Account Debtor has made any claim with respect to any other Account due from such Account Debtor to any Borrower or any Subsidiary of any Borrower, or the Account otherwise is or may become subject to right of setoff by the Account Debtor, provided, that any such Account shall be eligible to the extent such amount thereof exceeds such contract, dispute, claim, setoff or similar right; or
(vi)    the Account Debtor has commenced a voluntary case under the federal bankruptcy laws, as now constituted or hereafter amended, or made an assignment for the benefit of creditors, or a decree or order for relief has been entered by a court having jurisdiction in the premises in respect of the Account Debtor in an involuntary case under the federal bankruptcy laws, as now constituted or hereafter amended, or any other petition or other application for relief under the federal bankruptcy laws, as now constituted or hereafter amended, has been filed against the Account Debtor, or if the Account Debtor has failed, suspended business, ceased to be Solvent, or consented to or suffered a receiver, trustee, liquidator or custodian to be appointed for it or for all or a significant portion of its assets or affairs; or
(vii) it arises from a sale made or services rendered to an Account Debtor outside the United States, unless the sale is either (1) to an Account Debtor located in Ontario or any other province of Canada in which the Personal Property Security Act has been adopted in substantially the same form as currently in effect in Ontario, (2) on letter of credit, foreign credit insurance (assigned to Agent), guaranty or acceptance terms, in each case acceptable to Agent in its sole judgment, exercised in a commercially reasonable manner or (3) the Account Debtor is Tamba B.V., a subsidiary of Royal Dutch Shell plc provided that the amount of Accounts deemed Eligible Accounts pursuant to this clause (3) shall not exceed $4,000,000; or 
(viii)    (1) it arises from a sale to the Account Debtor on a guaranteed sale, sale-or-return, sale-on-approval, consignment, or any other repurchase or return basis; (2) it is subject to a reserve established by any Borrower for potential returns or refunds, to the extent of such reserve; or (3) it arises from a sale to the Account Debtor on a bill-and-hold basis unless (x) such Account Debtor has requested in writing that such sale be on a bill-and-hold basis, which writing shall contain an acknowledgement by such Account Debtor that it is obligated to pay for the subject Inventory, (y) such Inventory is delivered to the Account Debtor not later than 30 days after the original invoice date and (z) the aggregate of all such Accounts arising from bill-and-hold sales by all Borrowers, at any point in time, does not exceed One Million Five Hundred Thousand Dollars ($1,500,000); or
(ix)    the Account Debtor is the United States of America or any department, agency or instrumentality thereof, unless Borrower assigns its right to payment of such Account to 

 

Exhibit 10(i)  

Agent, in a manner satisfactory to Agent, in its sole judgment, so as to comply with the Assignment of Claims Act of 1940 (31 U.S.C. §203 et seq., as amended); or
(x)    it is not at all times subject to Agent's duly perfected, first priority security interest or is subject to a Lien that is not a Permitted Lien; or
(xi)    the goods giving rise to such Account have not been delivered to and accepted by the Account Debtor or the services giving rise to such Account have not been performed by the applicable Borrower and accepted by the Account Debtor or the Account otherwise does not represent a final sale; or
(xii)    the Account is evidenced by chattel paper or an instrument of any kind, or has been reduced to judgment; or
(xiii)    any Borrower or a Subsidiary of any Borrower has made any agreement with the Account Debtor for any extension, compromise, settlement or modification of the Account or deduction therefrom, except for discounts or allowances which are made in the ordinary course of business for prompt payment and which discounts or allowances are reflected in the calculation of the face value of each invoice related to such Account; or
(xiv)    25% or more of the Accounts owing from the Account Debtor are not Eligible Accounts hereunder or with respect to Accounts arising from Short Term Projects, 25% or more of the Accounts owing from the Account Debtor remain unpaid 60 days after the original invoice date shown on the invoice; or
(xv)    any Borrower has made an agreement with the Account Debtor to extend the time of payment thereof; or
(xvi)    it represents service charges, late fees or similar charges; or
(xvii)    it is an Account of Perma-Pipe that is subject to a performance bond or represents retention billings; or
(xviii)    Accounts which represent retention payments; or
(xix)    it is not otherwise acceptable to Agent in its sole judgment, exercised in a commercially reasonable manner.”
*    *    *
3.Total Indebtedness.  Subsection 8.2.3 of the Loan Agreement is hereby deleted and the following is inserted in its stead:
“8.2.3    Total Indebtedness.  Create, incur, assume, or suffer to exist, or permit any Subsidiary of any Borrower to create, incur or suffer to exist, any Indebtedness, except:
(i)Obligations owing to Agent or any Lender under this Agreement or any of the other Loan Documents;
(ii)Indebtedness, including without limitation Subordinated Debt, existing on the date of this Agreement and listed on Exhibit 8.2.3;
(iii)Permitted Purchase Money Indebtedness;
(iv)contingent liabilities arising out of endorsements of checks and other 

 

Exhibit 10(i)  

negotiable instruments for deposit or collection in the ordinary course of business;
(v)Guaranties of any Indebtedness permitted hereunder;
(vi)Indebtedness in respect of intercompany advances permitted by Section 8.2.2(iv);
(vii)obligations to pay Rentals permitted by subsection 8.2.18;
(viii)Intentionally Omitted;
(ix)IRB Indebtedness;
(x)Existing Mortgage Indebtedness;
(xi)Intentionally Omitted;
(xii)Indebtedness incurred pursuant to the Perma-Pipe Equipment Loan;
(xiii)to the extent not included above, trade payables, accruals and accounts payable in the ordinary course of business (in each case to the extent not overdue) not for Money Borrowed;
(xiv)Indebtedness incurred in connection with loans on the cash surrender value of key-man life insurance policies so long as the principal amount of such Indebtedness does not exceed $2,000,000, the per annum interest rate payable with respect to such Indebtedness does not exceed 4.25% and such Indebtedness does not require any principal amortization on or prior to December 31, 2013;
(xv)Money Borrowed incurred by foreign Subsidiaries of Borrowers and other Indebtedness not included in paragraphs (i) through (xiv) above which does not exceed at any time, in the aggregate, the sum of Eleven Million Dollars ($11,000,000);
(xvi)Indebtedness in respect to deferred taxes;
(xvii)Indebtedness relating to compensation owed to Borrower's employees for services rendered in the ordinary course of business;
(xviii)all unfunded pension and other employee benefit plan obligations and liabilities but only to the extent they are permitted to remain unfunded under applicable law; and
(xix)Indebtedness not included in paragraphs (i) through (xviii) above does not exceed at any time, in the aggregate, the sum of $500,000.
4.Unsecured Guaranties.  Subject to Borrowers effecting the repatriation of at least $2,000,000 to the United States from Foreign Subsidiaries, Agent and Lenders hereby consent to:  (x) Borrowers providing an unsecured guaranty of the obligations of Perma-Pipe of Saudi Arabia in connection with Money Borrowed owing by Perma-Pipe Saudi Arabia to Saudi British Bank in the Kingdom of Saudi Arabia so long as the principal amount of such guaranty does not exceed $10,000,000; and (y) Borrowers providing an unsecured guaranty of the obligations to Perma-Pipe India Pvt. Ltd. in connection with Money Borrowed owing by Perma-Pipe Pvt. Ltd. to HSBC so long as the principal amount of such guaranty does not exceed $3,450,000.
5.Conditions Precedent.  This Twelfth Amendment shall become effective upon receipt by Agent of a fully executed copy of this Twelfth Amendment.
6.Governing Law.  This Twelfth Amendment shall be governed by, and construed in accordance with, the laws of the State of Illinois, without regard to the principles thereof relating to conflict of laws.
7.Execution in Counterparts.  This Twelfth Amendment may be executed in any number of counterparts, which shall, collectively and separately, constitute one Agreement.
8.Continuing Effect.  Except as otherwise provided herein, the Loan Agreement remains in full force and effect.
(Signature Page Follows)
 
 
 

 

Exhibit 10(i)  

(Signature Page to Twelfth Amendment to
Amended and Restated Loan and Security Agreement)
	
		
	 
	MFRI, INC.
By:/s/ Michael D. Bennett
Name:  Michael D. Bennett
Title:  VP CFO

	 
	MIDWESCO FILTER RESOURCES, INC.
By:/s/ Michael D. Bennett
Name:  Michael D. Bennett
Title:  Vice President

	 
	PERMA-PIPE, INC.
By:/s/ Michael D. Bennett
Name:  Michael D. Bennett
Title:  Vice President

	 
	THERMAL CARE, INC.
By:/s/ Michael D. Bennett
Name:  Michael D. Bennett
Title:  Vice President

	 
	TDC FILTER MANUFACTURING, INC.
By:/s/ Michael D. Bennett
Name:  Michael D. Bennett
Title:  Vice President

	 
	MIDWESCO MECHANICAL AND ENERGY, INC.
By: /s/ Michael D. Bennett:
Name:  Michael D. Bennett
Title:  Secretary & Treasurer

 

Exhibit 10(i)  

(Signature Page to Twelfth Amendment to
Amended and Restated Loan and Security Agreement)
	
		
	 
	FREEZONE HOLDINGS LIMITED LIABILITY COMPANY
By:/s/ Michael D. Bennett
Name:  Michael D. Bennett
Title:  Manager

	 
	PERMA-PIPE CANADA, INC.
By:/s/ Michael D. Bennett
Name:   Michael D. Bennett
Title:  Vice President

	 
	BANK OF AMERICA, N.A., as Agent and as a Lender
By:/s/ Brian Conole
Name: Brian Conole
Title: Senior Vice Presidentd1187060_ex4-6.htm

EXHIBIT 4.6

 

	
1.

	
Date of Agreement

 

15th June 2010

 

Vessel’s Name:  MV MONTECRISTO

	
THE BALTIC AND INTERNATIONAL

MARITIME COUNSEL (BIMCO)

 

STANDARD SHIP MANAGEMENT AGREEMENT

 

CODE NAME:  “SHIPMAN 98”

                        Part I

 

	
2.

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

	
3.

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

	  	
Name

 

OCEANPOWER OWNERS INC.

	  	
Name

 

TMS DRY LTD.

	  	
Place of registered office

 

Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH 96960

	  	
Place of registered office

 

Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH 96960

	  	
Law of Registry

 

Republic of Marshall Islands

	  	
Law of Registry

 

Republic of Marshall Islands

	
4.

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

 

DATE OF PRESENT AGREEMENT AS PER BOX 1

	  	  
	
5.

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

 

YES

	
6.

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

 

YES

	
7.

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

 

YES

	
8.

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

 

YES

	
9.

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

 

YES

	
10.

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

 

YES

	
11.

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

 

YES

	
12.

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

 

YES

	
13.

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

Five Years from date indicated in Box 4

	
14.

	
Owner’s Insurance (state alternative (i), (ii) or (iii) of Cl. 6.3)

 

6.3(ii)

	
15.

	
Annual Daily Management Fee (state daily amount) (Cl. 8.1)

 

EURO 1,500.00

	
16.

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

 

As per applicable Collective Bargaining Agreement (CBA)

	
17.

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

 

Five years from date indicated in Box 4

	
18.

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

19.1

	
19.

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

 

c/o Savvas D. Georghiades Law Office

Tribune House

10, Skopa Street

CY-1303 Nicosia, Cyprus

Tel:  (+357) 22767515

Email:  law@kkadvocates.com

	
20.

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

 

TMS DRY Ltd.

Ag. Kostantinou 58 & Kifissias Avenue

GR 15124, Marousi, Athens, Greece

Tel:  (+30) 210 3441600

Fax:  (+30) 210 3441655

Email:  management@tms-dry.com

 

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

 

	
Signature(s) (Owners)

 

 

	
Signature(s) (Managers)

 

 

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

  

  

  

 

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

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

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

 

	
Date of Agreement

	
:

	  
	
Name of Vessel(s)

	
:

	
M/V MONTECRISTO (HULL No. 8038)

	
Particulars of Vessel(s)

	
:

	
Call Sign

	
–

	
9HA2348

	  	  	
IMO No.

	
–

	
9325025

	  	  	
Flag

	
–

	
Malta

	  	  	
Built

	
–

	
2005

	  	  	
SDWT

	
–

	
180,263

	  	  	
Grt

	
–

	
90,091

	  	  	
Nrt

	
–

	
59,287

 

 

 

 

 

 

 

 

 

 

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

 

  

  

  

 

ANNEX "B" (DETAILS OF CREW) TO

THE BALTIC AND  INTERNATIONAL MARITIME COUNCIL (BIMCO)

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

 

	
Date of Agreement

	
:

	  	  	  
	
Details of Crew

	
:

	
N/A

	  	  

 

 

	
Numbers

	  	
Rank

	  	
Nationality

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

 

 

 

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

 

  

  

  

 

ANNEX "C" (BUDGET) TO

THE BALTIC AND  INTERNATIONAL MARITIME COUNCIL (BIMCO)

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

 

 

See Box 15 and Clause 9

 

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

 

 M/V MONTECRISTO

 

	 	 	
ITEMS

	 	
YEARLY

(USD)

	 	 	
MONTHLY

(USD)

	 
	 	1	 	
WAGES, EXTRAS, O/T, E.T.C.

	 	 	
510,384

	 	 	 	
83,463

	 
	 	2	 	
JOINING & REPATRIATION COST

	 	 	
29,760

	 	 	 	
4,867

	 
	 	3	 	
VICTUALLING EXPENSES

	 	 	
29,760

	 	 	 	
4,867

	 
	 	 1	 	
TOTAL CREW EXPENSES

	 	 	
569,904

	 	 	 	
93,197

	 
	 	2	 	
STORES

	 	 	
93,372

	 	 	 	
15,269

	 
	 	3	 	
SPARES

	 	 	
105,462

	 	 	 	
17,246

	 
	 	4	 	
REPAIR / MAINTENANCE / SURVEY

	 	 	
55,986

	 	 	 	
9,155

	 
	 	5	 	
LUBRICANTS

	 	 	
75,516

	 	 	 	
12,349

	 
	 	6	 	
SUPT. TRAVEL / COMM. / MISC.

	 	 	
37,758

	 	 	 	
6,175

	 
	 	7	 	
INSURANCE (H+M, P-FI, WAR, LOH)

	 	 	
154,194

	 	 	 	
25,215

	 
	 	 	 	
SUBTOTAL OTHER EXPENSES

	 	 	
522,288

	 	 	 	

85,410

	 
	 	 	 	
GRAND TOTAL OPERATING COST

	 	 	
1,092,192

	 	 	 	
178,607

	 
	
DAILY AVERAGE (EXCL. DOCKING COST) (OPERATING DAYS 186)

	 	 	
5,872

	 	 	 	 	 
	
PRE-DELIVERY COST

	 	 	 	 	 	 	 	 

 

 

NOTE:

 

	
1.

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

	  	  
	
2.

	
Crew change basis Singapore and Continent port, otherwise, to be adjusted.

	  	  
	
3.

	
Spares costs are for routine maintenance (excluding major items).

	  	  
	
4.

	
Parity Euro / USD at 1,25.

	  	  
	
5.

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

 

 

 

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

 

  

  

  

 

 

ANNEX "D" (ASSOCIATED VESSELS) TO

THE BALTIC AND  INTERNATIONAL MARITIME COUNCIL (BIMCO)

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

 

 

 

NOTE:    PARTIES SHOULD BE AWARE THAT BY COMPLETING THIS ANNEX "D" THEY WILL BE SUBJECT TO THE PROVISIONS OF SUB-CLAUSE 18.1(i) OF THIS AGREEMENT.

 

 

	
Date of Agreement

	
:

	  	  	  
	
Details of Associated Vessels

	
:

	
 

	  	  
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

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

 

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

	  	  	  	  	  
	
1.  Definitions

	
1

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

	
66

	
In this Agreement save where the context otherwise requires,

	
2

	  	
of valid medical certificates issued in accordance with

	
67

	
the following words and expressions shall have the meanings

	
3

	  	
appropriate flag State requirements. In the absence of

	
68

	
hereby assigned to them.

	
4

	  	
applicable flag State requirements the medical certificate shall

	
69

	  	  	  	
be dated not more than three months prior to the respective

	
70

	
"Owners" means the party identified in Box 2.

	
5

	  	
Crew members leaving their country of domicile and

	
71

	
"Managers" means the party identified in Box 3.

	
6

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

	
72

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

	
7

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

	
73

	
out in Annex "A" attached hereto.

	
8

	  	
language of a sufficient standard to enable them to perform

	
74

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

	
9

	  	
their duties safely;

	
75

	
rank and nationality specified in Annex "B" attached hereto.

	
10

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

	
76

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

	
11

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

	
77

	
which are not particularly referable to any individual vessel for

	
12

	  	
(vii)  conducting union negotiations;

	
78

	
the time being managed by the Managers and which are incurred

	
13

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

	
79

	
by the Managers for the purpose of providing an efficient and

	
14

	  	
otherwise agreed.

	
80

	
economic management service and, without prejudice to the

	
15

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

	
16

	  	
3.2  Technical Management

	
81

	
pay, training schemes for officers and ratings, cadet training

	
17

	  	
(only applicable if agreed according to Box 6)

	
82

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

	
18

	  	
The Managers shall provide technical management which

	
83

	
"Severance Costs" means the costs which the employers are

	
19

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

	
84

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

	
20

	  	
(i)  provision of competent personnel to supervise the

	
85

	
the early termination of any employment contract for service on

	
21

	  	
maintenance and general efficiency of the Vessel;

	
86

	
the Vessel.

	
22

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

	
87

	
"Crew Insurances" means insurances against crew risks which

	
23

	  	
alterations and the upkeep of the Vessel to the standards

	
88

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

	
24

	  	
required by the Owners provided that the Managers shall

	
89

	
injury, shipwreck unemployment indemnity and loss of personal

	
25

	  	
be entitled to incur the necessary expenditure to ensure

	
90

	
effects.

	
26

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

	
91

	
"Management Services" means the services specified in sub-

	
27

	  	
Vessel and of the places where she trades, and all

	
92

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

	
28

	  	
requirements and recommendations of the classification

	
93

	
"ISM Code" means the International Management Code for the

	
29

	  	
society;

	
94

	
Safe Operation of Ships and for Pollution Prevention as adopted

	
30

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

	
95

	
by the International Maritime Organization (IMO) by resolution

	
31

	  	
lubricating oil;

	
96

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

	
32

	  	
(iv)  appointment of surveyors and technical consultants as the

	
97

	
"STCW 95" means the International Convention on Standards

	
33

	  	
Managers may consider from time to time to be necessary;

	
98

	
of Training, Certification and Watchkeeping for Seafarers, 1978,

	
34

	  	
(v)  development, implementation and maintenance of a Safety

	
99

	
as amended in 1995 or any subsequent amendment thereto.

	
35

	  	
Management System (SMS) in accordance with the ISM

	
100

	  	  	  	
Code (see sub-clauses 4.2 and 5.3).

	
101

	
2.  Appointment of Managers

	
36

	  	
(vi)  supervision of vessels under construction at the specific

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

	
37

	  	
request of the Owners and after approval by the Owner of

	  
	
unless and until terminated as provided herein, the Owners

	
38

	  	
the relevant budget submitted by the Managers.

	  
	
hereby appoint the Managers and the Managers hereby agree

	
39

	  	  	  
	
to act as the Managers of the Vessel.

	
40

	  	
3.3  Commercial Management

	
102

	  	  	  	
(only applicable if agreed according to Box 7)

	
103

	
3.  Basis of Agreement

	
41

	  	
The Managers shall provide the commercial operation of the

	
104

	
Subject to the terms and conditions herein provided, during the

	
42

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

	
105

	
period of this Agreement, the Managers shall carry out

	
43

	  	
limited to, the following functions:

	
106

	
Management Services in respect of the Vessel as agents for

	
44

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

	
107

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

	
45

	  	
instructions which include, but are not limited to, seeking

	
108

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

	
46

	  	
and negotiating employment for the Vessel and the conclusion

	
109

	
discretion consider to be necessary to enable them to perform

	
47

	  	
(including the execution thereof) of charter parties or other

	
110

	
this Agreement in accordance with sound ship management

	
48

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

	
111

	
practice.

	
49

	  	
contract exceeds the period stated in Box 13, consent thereto

	
112

	  	  	  	
in writing shall first be obtained from the Owners.

	
113

	
3.1  Crew Management

	
50

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

	
114

	
(only applicable if agreed according to Box 5)

	
51

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

	
115

	
The Managers shall provide suitably qualified Crew for the Vessel

	
52

	  	
whatsoever nature to which Owners may be entitled arising

	
116

	
as required by the Owners in accordance with the STCW 95

	
53

	  	
out of the employment of or otherwise in connection with the

	
117

	
requirements, provision of which includes but is not limited to

	
54

	  	
Vessel.

	
118

	
the following functions:

	
55

	  	
(iii)  providing voyage estimates and accounts and calculating of

	
119

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

	
56

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

	
120

	
arrangements, pension administration, and insurances for

	
57

	  	
or due to the charterers of the Vessel;

	
121

	
the Crew other than those mentioned in Clause 6:

	
58

	  	
(iv)  issuing of voyage instructions;

	
122

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

	
59

	  	
(v)  appointing agents;

	
123

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

	
60

	  	
(vi)  appointing stevedores;

	
124

	
rank, qualification and certification of the Crew and

	
61

	  	
(vii)  arranging surveys associated with the commercial operation

	
125

	
employment regulations including Crew's tax, social

	
62

	  	
of the Vessel.

	
126

	
insurance, discipline and other requirements;

	
63

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

	
64

	  	
3.4  Insurance Arrangements

	
127

	
examination with a qualified doctor certifying that they are fit

	
65

	  	
(only applicable if agreed according to Box 8)

	
128

	  	  	  	
The Managers shall arrange insurances in accordance with

	
129

 

 

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

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

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

	
130

	  	
responsibilities imposed by the ISM Code when applicable.

	
192

	
have instructed or agreed, in particular regarding conditions,

	
131

	  	  	  
	
insured values, deductibles and franchises.

	
132

	  	
6.  Insurance Policies

	
193

	  	  	  	
The Owners shall procure, whether by instructing the Managers

	
194

	
3.5  Accounting Services

	
133

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

	
195

	
(only applicable if agreed according to Box 9)

	
134

	  	
this Agreement:

	
196

	
The Managers shall:

	
135

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

	
197

	
(i)  establish an accounting system which meets the

	
136

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

	
198

	
requirements of the Owners and provide regular accounting

	
137

	  	
as the case may be for:

	
199

	
services, supply regular reports and records,

	
138

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

	
200

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

	
139

	  	
negligence) and excess liabilities;

	
201

	
as well as data necessary or proper for the settlement of

	
140

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

	
202

	
accounts between the parties.

	
141

	  	
Crew Insurances); and

	
203

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

	
204

	
3.6  Sale or Purchase of the Vessel

	
142

	  	
in accordance with the best practice of prudent  owners of

	
205

	
(only applicable if agreed according to Box 10)

	
143

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

	
206

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

	
144

	  	
companies, underwriters or associations (“the Owners’

	
207

	
supervise the sale or purchase of the Vessel, including the

	
145

	  	
Insurances”);

	
208

	
performance of any sale or purchase agreement, including but not

	
146

	  	
(iv)  Freight, Demurrage and Defense Insurance

	  
	
negotiation of the same.

	
147

	  	
(v)  Certificate of Financial Responsibility

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

	
148

	  	
(vi)  Crew Personal Accident and Sundries insurance cover

	  
	
The Managers shall arrange for the supply of provisions.

	
149

	  	
(vii)  Any other insurance that can be arranged and not included in 

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

	
150

	  	
the above but is requested by the Owners in writing

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

	
151

	  	
6.2  all premiums, deductibles, supplementary calls and/or excess

	
209

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

	
152

	  	
supplementary calls and release calls on the Owners’ Insurances

	  
	  	  	  	
are paid

	  
	
4.  Managers’ Obligations

	
153

	  	
promptly by their due date,

	
210

	
4.1  The Managers undertake to use their best endeavors

	
154

	  	
6.3  the Owners’ Insurances name the Managers and, subject

	
211

	
endeavors to

	  	  	
to underwriters’ agreement, any third party designated by the

	
212

	
provide the agreed Management Services as agents for and on

	
155

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

	
213

	
behalf of the Owners in accordance with sound ship management

	
156

	  	
obtaining cover in respect of each of the insurances specified in

	
214

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

	
157

	  	
sub-clause 6.1:

	
215

	
all matters relating to the provision of services hereunder.

	
158

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

	
216

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

	
159

	  	
are liable in respect of premiums or calls arising in connection

	
217

	
management responsibilities under this Agreement shall be entitled

	
160

	  	
with the Owners’ Insurances; or

	
218

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

	
161

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

	
219

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

	
162

	  	
Managers nor any such third party shall be under any

	
220

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

	
163

	  	
liability in respect of premiums or calls arising in connection

	
221

	
the Managers shall be entitled to allocate available supplies,

	
164

	  	
with the Owners’ Insurances; or

	
222

	
manpower and services in such manner as in the prevailing

	
165

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

	
223

	
circumstances the Managers in their absolute discretion consider

	
166

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

	
224

	
to be fair and reasonable.

	
167

	  	
blank then (i) applies.

	
225

	
4.2  Where the Managers are providing Technical Management

	
168

	  	
6.4  written evidence is provided, to the reasonable satisfaction

	
226

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

	
169

	  	
of the Managers, of their compliance with their obligations under

	
227

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

	
170

	  	
Clause 6 within a reasonable time of the commencement of

	
228

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

	
171

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

	
229

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

	
172

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

	
230

	
the Vessel and taking over the duties and responsibilities imposed

	
173

	  	  	  
	
by the ISM Code when applicable.

	
174

	  	
7.  Income Collected and Expenses Paid on Behalf of Owners

	
231

	  	  	  	
7.1  All moneys collected by the Managers under the terms of

	
232

	
5.  Owners’ Obligations

	
175

	  	
this Agreement (other than moneys payable by the Owners to

	
233

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

	
176

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

	
234

	
in accordance with the terms of this Agreement.

	
177

	  	
credit of the Owners in a separate bank account.

	
235

	
5.2  Where the Managers are providing Technical Management

	
178

	  	
7.2  All expenses incurred by the Managers under the terms

	
236

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

	
179

	  	
of this Agreement on behalf of the Owners (including expenses

	
237

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

	
180

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

	
238

	
their behalf comply with the requirements of STCW 95;

	
181

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

	
239

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

	
182

	  	
event remain payable by the Owners to the Managers on

	
240

	
of the Managers in connection with the operation of the

	
183

	  	
demand.

	
241

	
Managers’ safety management system.

	
184

	  	  	  
	
5.3  Where the Managers are not providing Technical Management

	
185

	  	
8.  Management Fee

	
242

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

	
186

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

	
243

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

	
187

	  	
as Managers under this Agreement an annual a daily management

	
244

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

	
188

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

	
245

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

	
189

	  	
monthly installments in advance, the first installment being

	
246

	
"Company" as defined by the ISM Code assuming the responsibility

	
190

	  	
payable on the commencement of this Agreement (see Clause

	
247

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

	
191

	  	
2 and Box 4) and subsequent installments being payable every

	
248

	  	  	  	
month.

	
249

 

 

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

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

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

	 	 	 	 
	

of this Agreement an amount equal to one month of

	  	  	
less than three months before the anniversary date of the

	
291

	

management fee stated in Box 15 as security.

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

	
292

	
 

	  	  	
9.2  The Owners shall indicate to the Managers their acceptance

	
293

	
Upon termination of this Agreement, all moneys remaining

	  	  	
and approval of the annual budget within one month of

	
294

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

	  	  	
presentation and in the absence of any such indication the

	
295

	
the Manager pursuant with the obligations set forth in the

	  	  	
Managers shall be entitled to assume that the Owners have

	
296

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

	  	  	
accepted the proposed budget.

	
297

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

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

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

	  	  	
this Agreement an amount equal to one month running

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

	  	  	
expenses as working capital reserve. For calculation purposes

	  
	
Owner is forfeited in favor of the Manager without prejudice to

	  	  	
the reserve will be based on the agreed budgeted daily average

	  
	
any rights which the Manager may have against the Owner in

	  	  	
cost as per the respective management agreement. Upon

	  
	
law or in equity.

	  	  	
termination of this Agreement all moneys remaining within the

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

	
250

	  	
working capital reserve shall be returned to the Owner subject

	  
	
on the anniversary date of the Agreement and for each calendar

	
251

	  	
to the terms and conditions of this agreement. Following the

	  
	
year and will be automatically adjusted to the Greek CPI index

	  	  	
agreement of the budget, the Managers shall

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

	  	  	
prepare and present to the Owners their estimate of the working

	
299

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

	  	  	
capital requirement of the Vessel and the Managers shall each

	
300

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

	
252

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

	
301

	
clause 9.1 clause 9.1.

	
253

	  	
each month request the Owners in writing for the funds required

	
302

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

	
254

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

	
303

	
their own office accommodation, office staff, facilities and

	
255

	  	
of any occasional or extraordinary item of expenditure, such as

	
304

	
stationery. Without limiting the generality of Clause 7 the Owners

	
256

	  	
emergency repair costs, additional insurance premiums, bunkers

	
305

	
shall reimburse the Managers for postage and communication

	
257

	  	
or provisions. Such funds shall be received by the Managers

	
306

	
expenses, travelling expenses, and other out of pocket

	
258

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

	
307

	
expenses properly incurred by the Managers in pursuance of

	
259

	  	
Managers' written request and shall be held to the credit of the

	
308

	
the Management Services.

	
260

	  	
Owners in a separate bank account.

	
309

	
8.4  In the event of the appointment of the Managers being

	
261

	  	
9.4  The Managers shall produce a comparison between

	
310

	
terminated for any reason other than Clause 19.2 by the Owners

	
262

	  	
budgeted and actual income and expenditure of the Vessel in

	
311

	
Or the Managers in accordance with

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

	
312

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

	
263

	  	
at such other

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

	
264

	  	
intervals as mutually agreed.

	
313

	
disposed of, the "management fee" shall be payable to the Managers

	
265

	  	
9.5  Notwithstanding anything contained herein to the contrary,

	
314

	
according to the provisions of sub-clause 8.1. shall continue to

	
266

	  	
the Managers shall in no circumstances be required to use or

	
315

	
be payable for a further period of three (3) calendar months as

	
267

	  	
commit their own funds to finance the provision of the

	
316

	
from the termination date. In addition, provided that the

	
268

	  	
Management Services.

	
317

	
Managers provide Crew for the Vessel in accordance with sub-

	
269

	  	  	  
	
clause 3.1:

	
270

	  	
10.  Managers' Right to Sub-Contract

	
318

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

	
271

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

	
319

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

	
272

	  	
their obligations hereunder, including those mentioned in sub-

	
320

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

	
273

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

	
321

	
Severance Costs which may materialize, not exceeding

	
274

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

	
322

	
the amount stated in Box 16.

	
275

	  	
contract the Managers shall remain fully liable for the due

	
323

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

	
276

	  	
performance of their obligations under this Agreement.

	
324

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

	
277

	  	  	  
	
than three months, an appropriate reduction of the management

	
278

	  	
11.  Responsibilities

	
325

	
fee for the period exceeding three months until one month

	
279

	  	
11.1  Force Majeure - Neither the Owners nor the Managers

	
326

	
before the Vessel is again put into service shall be mutually

	
280

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

	
327

	
agreed between the parties.

	
281

	  	
obligations hereunder by reason of any cause whatsoever of

	
328

	
8.6  Unless otherwise agreed in writing all discounts and

	
282

	  	
any nature or kind beyond their reasonable control. For the

	
329

	
commissions obtained by the Managers in the course of the

	
283

	  	
avoidance of any doubt financial force majeure does not apply.

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

	
284

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

	
330

	
avoidance of any doubt, it is understood that insurance is

	  	  	
11.1 the Managers shall be under no liability whatsoever to the

	
331

	
charged on a gross rate basis.

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

	
332

	
8.7  In case of vessels under construction, no management fee

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

	
333

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

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

	
334

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

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

	
335

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

	  	  	
performance of the Management Services UNLESS same is

	
336

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

	  	  	
proved to have resulted solely from the negligence, gross

	
337

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

	  	  	
negligence or willful default of the Managers or their employees,

	
338

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

	  	  	
or agents or sub-contractors employed by them in connection

	
339

	
of Clause 8 to remain in force.

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

	
340

	  	  	  	
or expense has resulted from the Managers' personal act or

	
341

	
9. Budgets and Management of Funds

	
285

	  	
omission committed with the intent to cause same or recklessly

	
342

	
9.1 On or before November 30 of each calendar year Tthe

	
286

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

	
343

	
Managers shall present to the Owners annually a

	  	  	
would probably result) the Managers' liability for each incident

	
344

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

	
287

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

	
345

	
calendar year in such form as the

	  	  	
exceed a total of ten times the annual management fee payable

	
346

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

	
288

	  	
hereunder.

	
347

	
set out

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

	
348

	
in Annex "C" hereto. Subsequent annual budgets shall be

	
289

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

	
349

	
prepared by the Managers and submitted to the Owners not

	
290

	  	  	  

 

 

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

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

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

	
350

	  	
14.  Auditing

	
416

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

	
351

	  	
The Managers shall at all times maintain and keep true and

	
417

	
to have resulted from a failure by the Managers to discharge

	
352

	  	
correct accounts in accordance with sound accounting practice

	
418

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

	
353

	  	
and an adequate and effective system of internal controls and

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

	
354

	  	
procedures and shall make the same available for permit the

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

	
355

	  	
inspection

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

	
356

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

	
419

	
clause 11.2, the Owners hereby undertake to keep the Managers

	
357

	  	
may be mutually

	  
	
and their employees, agents and sub-contractors indemnified

	
358

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

	
420

	
and to hold them harmless against all actions, proceedings,

	
359

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

	
421

	
claims, demands or liabilities whatsoever or howsoever arising

	
360

	  	
requested, the originals where possible, or otherwise certified

	
422

	
which may be brought against them or incurred or suffered by

	
361

	  	
copies, of all such accounts and all documents specifically relating

	
423

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

	
362

	  	
to the Vessel and her operation.

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

	
363

	  	  	  
	
damages and expenses (including legal costs and expenses on

	
364

	  	
15.  lnspection of Vessel

	
425

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

	
365

	  	
The Owners shall have the right at any time after giving

	
426

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

	
366

	  	
reasonable notice to the Managers to inspect the Vessel for any

	
427

	
this Agreement.

	
367

	  	
reason they consider necessary.

	
428

	
11.4  "Himalaya" - It is hereby expressly agreed that no

	
368

	  	  	  
	
employee or agent of the Managers (including every sub-

	
369

	  	
16.  Compliance with Laws and Regulations

	
429

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

	
370

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

	
430

	
any circumstances whatsoever be under any liability whatsoever

	
371

	  	
might cause any breach or infringement of the laws and

	
431

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

	
372

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

	
432

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

	
373

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

	
374

	  	
17.  Duration of the Agreement

	
433

	
with his employment and, without prejudice to the generality of

	
375

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

	
434

	
the foregoing provisions in this Clause 11, every exemption,

	
376

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

	
435

	
limitation, condition and liberty herein contained and every right,

	
377

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

	
436

	
exemption from liability, defense and immunity of whatsoever

	
378

	  	
shall thereafter be extended in additional five-year increments if

	  
	
nature applicable to the Managers or to which the Managers are

	
379

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

	  
	
entitled hereunder shall also be available and shall extend to

	
380

	  	
quarter of the year immediately preceding the end of the

	  
	
protect every such employee or agent of the Managers acting

	
381

	  	
respective term, continue until terminated by either party giving

	  
	
as aforesaid and for the purpose of all the foregoing provisions

	
382

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

	
437

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

	
383

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

	
438

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

	
384

	  	
date upon which such notice was given.

	
439

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

	
385

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

	
386

	  	
18.  Termination

	
440

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

	
387

	  	
18.1  Owners' default

	
441

	
Agreement.

	
388

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

	
442

	  	  	  	
with immediate effect by notice in writing if any moneys

	
443

	
12.  Documentation

	
389

	  	
payable by the Owners under this Agreement and/or the

	
444

	
Where the Managers are providing Technical Management in

	
390

	  	
Owners of any associated vessel, details of which are listed

	
445

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

	
391

	  	
in Annex "D", shall not have been received in the Managers'

	
446

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

	
392

	  	
nominated account within ten (10) running days of receipt by

	
447

	
upon Owners' request, all documentation and records related

	
393

	  	
the Owners of the Managers written request or if the Vessel

	
448

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

	
394

	  	
is repossessed by the Mortgagees.

	
449

	
which the Managers need in order to demonstrate compliance

	
395

	  	
(ii)  If the Owners:

	
450

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

	
396

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

	
451

	
a third party.

	
397

	  	
and 5.3 of this Agreement for any reason within their

	
452

	  	  	  	
control, or

	
453

	
13.  General Administration

	
398

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

	
454

	
13.1  The Managers shall handle and settle all claims arising

	
399

	  	
the Vessel in the carriage of contraband, blockade

	
455

	
out of the Management Services hereunder and keep the Owners

	
400

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

	
456

	
informed regarding any incident of which the Managers become

	
401

	  	
in the reasonable opinion of the Managers is unduly

	
457

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

	
402

	  	
hazardous or improper,

	
458

	
third parties.

	
403

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

	
459

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

	
404

	  	
requiring them to remedy it as soon as practically possible.

	
460

	
or defend actions, suits or proceedings in connection with matters

	
405

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

	
461

	
entrusted to the Managers according to this Agreement.

	
406

	  	
reasonable time to the satisfaction of the Managers, the

	
462

	
13.3  The Managers shall also have power to obtain legal or

	
407

	  	
Managers shall be entitled to terminate the Agreement

	
463

	
technical or other outside expert advice in relation to the handling

	
408

	  	
with immediate effect by notice in writing.

	
464

	
and settlement of claims and disputes or all other matters

	
409

	  	
18.2  Managers' Default

	
465

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

	
410

	  	
If the Managers fail to meet their obligations under Clauses 3

	
466

	
13.4 The Owners shall arrange for the provision of any

	
411

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

	
467

	
necessary guarantee bond or other security.

	
412

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

	
468

	
13.5 Any costs reasonably incurred by the Managers in

	
413

	  	
default, requiring them to remedy it as soon as practically

	
469

	
carrying out their obligations according to Clause 13 shall be

	
414

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

	
470

	
reimbursed by the Owners.

	
415

	  	
reasonable time to the satisfaction of the Owners, the Owners

	
471

	  	  	  	
shall be entitled to terminate the Agreement with immediate effect

	
472

	  	  	  	
by notice in writing.

	
473

 

 

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

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

	  	  	  	  	  
	
18.3  Extraordinary Termination

	
474

	  	
party requiring the other party to appoint its own arbitrator

	
516

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

	
475

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

	
517

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

	
476

	  	
appoint its arbitrator as sole arbitrator unless the other party

	
518

	
declared as a constructive or compromised or arranged total

	
477

	  	
appoints its own arbitrator and gives notice that it has done

	
519

	
loss or is requisitioned.

	
478

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

	
520

	
18.4  For the purpose of sub-clause 18.3 hereof

	
479

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

	
521

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

	
480

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

	
522

	
been sold or otherwise disposed of shall be the date on

	
481

	  	
arbitration may, without the requirement of any further prior

	
523

	
which the Owners cease to be registered as Owners of

	
482

	  	
notice to the other party, appoint its arbitrator as sole

	
524

	
the Vessel;

	
483

	  	
arbitrator and shall advise the other party accordingly. The

	
525

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

	
484

	  	
award of a sole arbitrator shall be binding on both parties

	
526

	
she has become an actual total loss or agreement has

	
485

	  	
as if he had been appointed by agreement.

	
527

	
been reached with her underwriters in respect of her

	
486

	  	
Nothing herein shall prevent the parties agreeing in writing

	
528

	
constructive, compromised or arranged total loss or if such

	
487

	  	
to vary these provisions to provide for the appointment of a

	
529

	
agreement with her underwriters is not reached it is

	
484

	  	
sole arbitrator.

	
530

	
adjudged by a competent tribunal that a constructive loss

	
489

	  	
In cases where neither the claim nor any counterclaim

	
531

	
of the Vessel has occurred.

	
490

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

	
532

	
18.5  This Agreement shall terminate forthwith in the event of

	
491

	  	
parties may agree) the arbitration shall be conducted in

	
533

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

	
492

	  	
accordance with the LMAA Small Claims Procedure current

	
534

	
dissolution, liquidation or bankruptcy of either party (otherwise

	
493

	  	
at the time when the arbitration proceedings are commenced.

	
535

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

	
494

	  	
19.2  This Agreement shall be governed by and construed

	
536

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

	
495

	  	
in accordance with Title 9 of the United States Code and

	
537

	
on business or makes any special arrangement or composition

	
496

	  	
the Maritime Law of the United States and any dispute

	
538

	
with its creditors.

	
497

	  	
arising out of or in connection with this Agreement shall be

	
539

	
18.6  The termination of this Agreement shall be without

	
498

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

	
540

	
prejudice to all rights accrued due between the parties prior to

	
499

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

	
541

	
the date of termination.

	
500

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

	
542

	  	  	  	
final, and for the purposes of enforcing any award,

	
543

	
18.7  Termination After Change of Control

	  	  	
judgment may be entered on an award by any court of

	
544

	
This Agreement will terminate automatically immediately after a

	  	  	
competent jurisdiction. The proceedings shall be conducted

	
545

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

	  	  	
in accordance with the rules of the Society of Maritime

	
546

	
the Owners' ultimate parent.  Upon such termination, the Owners

	  	  	
Arbitrators, Inc.

	
547

	
will be required to pay the Manager the Termination Payment in

	  	  	
In cases where neither the claim nor any counterclaim

	
548

	
a single installment.

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

	
549

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

	  	  	
parties may agree) the arbitration shall be conducted in

	
550

	
the occurrence of any of the following:

	  	  	
accordance with the Shortened Arbitration Procedure of the

	
551

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

	
552

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

	  	  	
the arbitration proceedings are commenced.

	
553

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

	  	  	
19.3  This Agreement shall be governed by and construed

	
554

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

	  	  	
in accordance with the laws of the place mutually agreed by

	
555

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

	  	  	
the parties and any dispute arising out of or in connection

	
556

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

	  	  	
with this Agreement shall be referred to arbitration at a

	
557

	
Owners' ultimate parent entitled to vote generally in the election

	  	  	
mutually agreed place, subject to the procedures applicable

	
558

	
of directors;

	  	  	
there.

	
559

	
(ii)  The consummation of a reorganization, merger or

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

	
560

	
consolidation of the Owners and/or the Owners' ultimate parent

	  	  	
clause 19.1 of this Clause shall apply.

	
561

	
or the sole or other disposition of all or substantially all of the

	  	  	  	  
	
assets of the Owners and/or the Owners' ultimate parent;

	  	  	
Note:  19.1, 19.2 and 19.3 are alternatives; indicate

	
562

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

	  	  	
alternative agreed in Box 18.

	
563

	
Owners' ultimate parent of a complete liquidation or dissolution

	  	  	  	  
	
of the Owners and/or the Owners' ultimate parent

	  	  	
20.  Notices

	
564

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

	
565

	
Further, for the purpose of this Agreement "Termination

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

	
566

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

	  	  	
registered or recorded mail or by personal service.

	
567

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

	  	  	
20.2  The address of the Parties for service of such

	
568

	
the estimated remaining fees payable to the Manager under the

	  	  	
communication shall be as stated in Boxes 19 and 20,

	
569

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

	  	  	
respectively.

	
570

	
less than for a period of thirty-six (36) months and not more

	  	  	  	  
	
than a period of forty-eight (48) months.

	  	  	
21.  Other Fees

	  
	  	  	  	
21.1  Incentive Fee

	  
	
19.  Law and Arbitration

	
501

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

	  
	
19.1  This Agreement shall be governed by and construed in

	
502

	  	
to provide the Managers with a performance incentive, may

	  
	
accordance with English law and any dispute arising out of or

	
503

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

	  
	
in connection with this Agreement shall be referred to arbitration

	
504

	  	
to the management fee.

	  
	
in London in accordance with the Arbitration Act 1996 or

	
505

	  	
21.2  Chartering

	  
	
any statutory modification or re-enactment thereof save to

	
506

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

	  
	
the extent necessary to give effect to the provisions of this

	
507

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

	  
	
Clause.

	
508

	  	
any doubt and regardless of Clause 8.5, chartering commissions

	  
	
The arbitration shall be conducted in accordance with the

	
509

	  	
shall survive the termination of this agreement under all

	  
	
London Maritime Arbitrators Association (LMAA) Terms

	
510

	  	
circumstances until the termination of the charter party in force

	  
	
current at the time when the arbitration proceedings are

	
511

	  	
at the time or termination of any other employment arranged

	  
	
commenced.

	
512

	  	
previous to the termination date.

	  
	
The reference shall be to three arbitrators. A party wishing

	
513

	  	

21.3  Sale and Purchase

	  
	
to refer a dispute to arbitration shall appoint its arbitrator

	
514

	  	

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

	  
	
and send notice of such appointment in writing to the other

	
515

	  	

initial purchase of the Vessel, including vessels under

	  
	 	 	 	

construction.  Such fee shall be payable in USD.

	 

 

 

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

 

SK 25754 0002 1187060

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]