Document:

Technical Management Agreement between Noemi Shipping Company Limited and SSM

 Exhibit 10.8 

 

 

  

											
	
 

	 	1.	 	 Date of Agreement
 December
1, 2009
	 		 	 THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
  
	 	

	 		 		 		 	 STANDARD SHIP MANAGEMENT AGREEMENT
  

CODE NAME: “SHIPMAN 98”
  
 Part 1
  

	 	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
 Noemi Shipping Company Limited
	 		 	 Name
 Scorpio Ship Management sam

	 		 	 Place of registered office
 Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands
	 		 	 Place of registered office
 9 blvd Charles III, MH98000 Monaco

	 		 	 Law of registry
 Marshall Islands
	 		 	 Law of registry
 Principality of Monaco

	 	4.	 	 Day and year of commencement of Agreement (Cl.2)
 December 1, 2009

	 	5.	 	 Crew Management (state “yes” or “no” as agreed (Cl.3.1)
 YES
	 	6.	 	 Technical Management (state “yes” or “no” as agreed)
(Cl.3.2)
 YES

	 	7.	 	 Commercial Management (state “yes” or “no” as agreed)
(Cl.3.3)
 NO
	 	8.	 	 Insurance Arrangements (state “yes” or “no” as agreed)
(Cl.3.4)
 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)

 NO

	 	13.	 	 Chartering Services Period (only to be filled in if “yes” stated in Box 7)
(Cl.3.3(i))
 NO
	 	14.	 	 Owner’s Insurance (state alternative (i), (ii) or (iii) of
(Cl.6.3)
 6.3(i) to apply

	 	15.	 	 Annual Management Fee (state annual amount) (Cl.8.1)
 US$200,000.
	 	16.	 	 Severance Costs (state maximum amount) (Cl.8.4(ii))

 For Owners’ account: please see clause 8.4 (ii)

	 	17.	 	 Day and year of termination of Agreement (Cl.17)
 See clause 17.
	 	18.	 	 Law and Arbitration (state alternative 19.1, 19.2 or
19.3; if 19.3 place of arbitration must be stated) (Cl.19)
 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 Scorpio Commercial Management sam
 9 blvd Charles III
 MC98000 Monaco

  
	 	20.	 	 Notices (state postal and cable address, telex and telefax number for serving
notice and communication to the Managers) (Cl. 20)
 9 blvd Charles III
 MC98000 Monaco
 phone +377 97985700

 fax +377 92057045
 e-mail:
technical@scorpio.mc

 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. 

 

 

 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 

 In this
Shipman 98 form (together with the Additional Clauses of even date herewith and any Schedules thereto (the “Agreement”)) save where the context otherwise requires, the following words and expressions shall have the meanings hereby assigned
to them. 
 “Owners” means the party identified in Box 2. 
 “Managers” means the party identified in Box 3. 
 “Vessel” means the vessel or vessels details of which are set out in Annex “A” attached hereto. 

“Crew” means the Master, officers and ratings of the numbers, rank and nationality specified in Annex
“B” attached hereto. 
 “Crew Support Costs” means all expenses of a general nature which are not
particularly referable to any individual vessel for the time being managed by the Managers and which are incurred by the Managers for the purpose of providing an efficient and economic management service and, without prejudice to the generality of
the forgoing, shall include the cost of crew standby pay, training schemes, sick pay, study pay, recruitment and interviews. 
 “Severance Costs” means the costs which the employers are legally obliged to pay to or in respect of the Crew as a result of the early termination of any employment contract for service on the Vessel. 
 “Crew Insurances” means insurances against crew risks which shall include but not be limited to death, sickness,
repatriation, injury, shipwreck unemployment indemnity and loss of personal effects. 
 “Management Services”
means the services specified in sub-clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12. 
 “ISM
Code” means the International Management Code for the Safe Operation of Ships and for the Pollution Prevention as adopted by the International Maritime Organization (IMO) by resolution A.741(18) or any subsequent amendment thereto.

 “STCW 95” means the International Convention on Standards of Training, Certification and Watchkeeping for
Seafarers, 1978, as amended in 1995 or any subsequent amendment thereto. 
  

	2.	Appointment of Managers 

 With effect from the day and year stated in Box 4 and continuing unless and until terminated as provided herein, the Owners herby appoint the Managers and the Managers hereby agree to act as the Managers of the Vessel. 
  

	3.	Basis of Agreement 

 Subject to the terms and conditions herein provided, during the period of this Agreement, the Managers shall carry out Management Services in respect of the Vessel as agents for and on behalf of the Owners. The Managers shall have authority
to take such actions as they may from time to time in their absolute discretion consider to be necessary to enable them to perform this Agreement in accordance with sound ship management practice. 
 3.1 Crew Management 
 (only applicable if agreed according to Box 5) 
 The Managers shall provide suitably qualified Crew for
the Vessel as required by the Owners in accordance with the STCW 95 requirements, provision of which includes but is not limited to the following functions: 
  

	 	(i)	selecting and engaging the Vessel’s –Crew, including payroll arrangements, pension administration, and insurances for the Crew other than those mentioned in
Clause 6; 

  

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

  

	 	(iii)	ensuring that all members of the Crew have passed a medical examination with a qualified doctor certifying that they are fit for the duties for which they are engaged
and are in possession of valid medical certificates issued in accordance with appropriate flag State requirements. In the absence of applicable flag State requirements the medical certificate shall be dated not more than three months prior
to the respective Crew members leaving their country of domicile and maintained for the duration of their service on board the Vessel; 

  

	 	(iv)	ensuring that the Crew shall have a command of the English language of a sufficient standard to enable them to perform their duties safely; 

  

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

  

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

  

	 	(vii)	conducting union negotiations; 

  

	 	(viii)	operating the Managers’ drug and alcohol policy unless otherwise agreed. 

 3.2 Technical Management 
 (only applicable if agreed according to Box 6) 
 The Managers shall
provide technical management which includes, but is not limited to, the following functions: 
  

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

  

	 	(ii)	arrangement and supervision of dry dockings, repairs, alterations and the upkeep of the Vessel to the standards required by the Owners provided that the Managers shall
be entitled to incur the necessary expenditure to ensure that the Vessel will comply with the law of the flag of the Vessel and of the places where she trades, and all requirements and recommendations of the classification Society;

  

	 	(iii)	arrangement of the supply of necessary victualling, stores, spares, and lubricating oil and services for the Vessel; 

  

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

  

	 	(v)	development, implementation and maintenance of a Safety Management System (SMS) in accordance with the ISM Code and an ISPS (see sub-clauses 4.2 and 5.3)

 3.3 Commercial Management 
 (only applicable if agreed according to Box 7) 
 The Managers shall provide the commercial operation of the Vessel, as required by the Owners, which includes, but is not limited to,
the following functions: 
  

	 	(i)	providing chartering services in accordance with the Oweners’ instructions which include, but are not limited to, seeking and negotiating employment for
the Vessel and the conclusion (including the execution thereof) of charter parties or other contract exceeds the period stated in Box 13, consent thereto in writing shall first be obtained from the Owners.

  

	 	(ii)	arranging of the proper payment to Owners or their nominees of all hire and/or freight revenues or other moneys of whatsoever nature to which Owners may be
entitled arising out of the employment of or otherwise in connection with the Vessel. 

  

	 	(iii)	providing voyage estimates and accounts and calculating of hire, freights, demurrage and/or dispatch moneys due from or due to the charterers of the
Vessel; 

  

	 	(iv)	issuing of voyage instructions; 

  

	 	(v)	appointing agents; 

  

	 	(vi)	appointing stevedores; 

  

	 	(vii)	arranging surveys associated with the commercial operation of the Vessel. 

 3.4 Insurance Arrangements’ 
 (Only applicable if agreed according to Box 8) 
  
 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 
  

 The Managers shall arrange insurances in accordance with Clause 6, on such terms and
conditions as the Owners shall have instructed or agreed, in particular regarding conditions, insured values, deductibles and franchises. 
 3.5 Accounting Services 
 (only applicable if agreed according to Box
9) 
 The Managers shall: 
  

	 	(i)	establish an accounting system which meets the requirements of the Owners and provide regular accounting services, supply regular reports and records,

  

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

 3.6 Sale or Purchase of the Vessel 
 (only applicable if agreed according to Box 10) 
 The Managers shall, if so requested and in accordance with the Owner’s instructions, provide technical assistance in connection with any sale of the Vessel, supervise the sale or purchase of the
Vessel, including the performance of any sale or purchase agreement, but not negotiation of the same. Any time lost by the Vessel and cost associated with sale and purchase of the Vessel will be considered as contingency and out of budget (please
refer to clause 8.10 hereto). 
 3.7 Provisions (only applicable if agreed according to Box 11) 

 The Managers shall arrange for the supply of provisions. 
 3.8 Bunkering (only applicable if agreed according to Box
12) 
 The Managers shall arrange for the provision of bunker fuel of
the quality specified by the Owners as required for the Vessel’s trade, 
  

	4.	Managers’ Obligations 

 4.1 The Managers undertake to use their best endeavours to provide the agreed Management Services as agents for and on behalf of the Owners in accordance with sound ship management practice and to protect and promote the interests of
the Owners in all matters relating to the provision of services hereunder. Provided, however, that the Managers in the performance of their management responsibilities under this Agreement shall be entitled to have regard to their overall
responsibility in relation to all vessels as may from time to time be entrusted to their management and in particular, but without prejudice to the generality of the foregoing, the Managers shall be entitled to allocate available supplies, manpower
and services in such manner as in the prevailing circumstances the Managers in their absolute discretion consider to be fair and reasonable. 
 4.2 Where the Managers are providing Technical Management in accordance with sub-clause 3.2, they shall procure that the requirements of the law of the flag of the Vessel are satisfied and
they shall in particular be deemed to be the “Company” as defined by the ISM Code, assuming the responsibility for the operation of the Vessel and taking over the duties and responsibilities imposed by the ISM Code when applicable.

  

	5.	Owner’s Obligations 

 5.1 The Owners shall pay all sums due to the Managers punctually in accordance with the terms of this Agreement. 
 5.2 Where the Managers are providing Technical Management in accordance with sub-clause 3.2, the Owners shall: 
  

	 	(i)	procure that all officers and ratings supplied by them or on their behalf comply with the requirements of STCW 95; 

  

	 	(ii)	instruct such officers and ratings to obey all reasonable orders of the Managers in connection with the operation of the Manager’s safety management
system, 

 5.3 Where the Managers are not providing Technical Management in accordance with
sub-clause 3.2, the Owners shall procure that the requirements of the law of the flag of the Vessel are satisfied and that they, or such other entity as may be appointed by them and identified to the Managers, shall be deemed
to be the “Company” as defined by the ISM Code assuming the responsibility for the operation of the Vessel and taking over the duties and responsibilities imposed by the ISM Code when applicable. 
  

	6.	Insurance Policies 

 The
Owners shall procure, whether by instructing the Managers under sub-clause 3.4 or otherwise, that throughout the period of this Agreement: 
 6.1 at the Owners’ expense, the Vessel is insured for not less than her sound market value or entered for her full gross tonnage, as the case may be for: 
  

	 	(i)	usual hull and machinery marine risks (including crew negligence) and excess liabilities; 

  

	 	(ii)	protection and indemnity risks (including pollution risks and Crew Insurance, FDD cover); and 

  

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

  

	 	(iv)	Loss of Hire (TBA) 

 In
accordance with the best practice of prudent owners of vessels of a similar type to the Vessel, with first class insurance companies, underwriters or associations (“the Owners Insurance”); 
 6.2 all premiums and calls on the Owners’ Insurance are paid promptly by their due date, 
 6.3 the Owners’ Insurances name the Managers and, subject to underwriters’ agreement, any third party designated by the
Managers as a joint assured, with full cover, with the Owners obtaining cover in respect of each of the insurances specified in sub-class 6.1: 
  

	 	(i)	on terms whereby the Managers and any such third party are liable in respect of premiums or calls arising in connection with the Owners’ Insurances; or

  

	 	(ii)	if reasonably obtainable, on terms such that neither the Managers nor any such third party shall be under any liability in respect of premiums or calls
arising in connection with the Owners’ Insurances; or 

  

	 	(iii)	on such other terms as may be agreed in writing, indicate alternative (i), (ii), or (iii) in Box-14. If
Box-14 is left blank then (i) applies. 

 6.4 written evidence is
provided, to the reasonable satisfaction of the Managers, of their compliance with their obligations under Clause 6 within a reasonable time of the commencement of the Agreement, and of each renewal date and, if specifically requested, of
each payment date of the Owners’ Insurances. 
  

	7.	Income Collected and Expenses Paid on Behalf of Owners 

 7.1 All moneys collected by the Managers under the terms of this Agreement (other than moneys payable by the Owners to the Managers) and any interest thereon shall be held to the credit of the
Owners in a separate bank account. 
 7.2 All expenses incurred by the Managers under the terms of this Agreement on
behalf of the Owners (including expenses as provided in Clause 8) may be debited against the owners in the account referred to under sub-clause 7.1 but shall in any event remain payable by the Owners to the Managers on demand.

  

	8.	Management Fee – see also Additional Clause 24 

 8.1 The Owners shall pay to the Managers for their services as Managers under this Agreement an annual management fee as stated in Box 15 which shall be payable by equal monthly instalments
in advance, the first instalment being payable on the commencement of this Agreement (see Clause 2 and Box 4) and subsequent instalments being payable every month. 
 8.2 The management fee shall be subject to an annual review on the anniversary date of the Agreement and the proposed

  
 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 
  

 
fee shall be presented in the annual budget referred to in sub-clause 9.1. 
 8.3 The Managers shall, at no extra cost to the Owners, provide their own office accommodation, office, staff, facilities and stationery. Without limiting the generality of Clause 7 the Owners shall reimburse the Managers for
postage and communication expenses, travelling expenses, and other out of pocket expenses properly incurred by the Managers in pursuance of the Management Services. 
 8.4 In the event of the appointment of the Managers being terminated by the Owners or the Managers in accordance with the provisions of Clauses 17 and 18 other than by reason of
default by the Managers, or if the Vessel is lost, sold or otherwise disposed of, the “management fee” payable to the Managers according to the provisions of sub-clause 8.1, shall continue to be payable for a further period of three
calendar months as from the termination date. In addition, provided that the Managers provide Crew for the Vessel in accordance with sub-clause 3.1: 
  

	 	(i)	the Owners shall continue to pay Crew Support Costs during the said further period of three calendar months and 

  

	 	(ii)	the Owners shall pay an equitable proportion of any the Severance Costs in full which may materialize, not exceeding the amount stated in
Box 16. 

 8.5 If the Owners decide to lay-up the Vessel whilst this
Agreement remains in force and such lay-up lasts for more than three months, an appropriate reduction of the management fee for the period exceeding three months until one month before the Vessel is again put into service shall be mutually agreed
between the parties. 
 8.6 Unless otherwise agreed in writing all discounts and commissions obtained by the Managers in
the course of the management of the Vessel shall be credited to the Owners. 
 8.7 Where a charterers vetting inspection
may be required and a pre-inspection is requested, the costs of such additional services shall be charged to the Vessel’s account (see cl. 23) 
 8.8 If the Vessel is placed on time charter, additional expenses 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. 
 8.9 All fees are exclusive of Value Added Taxes or other applicable taxes,
if any. 
 8.10 If as a result of collision, accident, emergency, or any other extraordinary circumstances, the
Manager’s workload is increased beyond that which the parties could reasonably have anticipated, the Managers shall be entitled to 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. 
 9. Budgets and Management of Funds

 9.1 The Managers shall present to the Owners annually a budget for the following twelve months in such form as the
Owners require. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners not less that three months
one month before the anniversary date of the commencement of this Agreement (see Clause 2 and Box 4). 
 9.2 The Owners shall Indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have
accepted the proposed budget. 
 9.3 Following the agreement of the budget, the Managers shall prepare and present to the
Owners their estimate of the working capital requirement of the Vessel and the Managers shall each month up-date this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to run the Vessel for
the ensuing month, including the payment of any occasional or extraordinary item of expenditure, such as emergency repair costs, additional insurance premiums, bunkers or provisions. Such funds shall be received by the Managers within ten running
days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Owners in a separate bank account. 
 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessel in such form as required by the Owners monthly on a quarterly basis or
such other intervals as mutually agreed. 
 9.5 Notwithstanding anything contained herein to the
contrary, the Managers shall in no circumstances be required to use or commit their own funds to finance the provision of the Management Services. 
 10. Managers’ Right to Sub-Contract 
 The Managers shall not have the right to sub-contract any of their
obligations hereunder, including those mentioned in sub-clause 3.1, without the prior written consent of the Owners which shall not be unreasonably withheld. In the event of such a sub-contract the Managers shall remain fully liable for the
due performance of their obligations under this Agreement. 
 11. Responsibilities 
 11.1 Force Majeure – Neither the Owners nor the Managers shall be under any liability for any failure to perform
any of their obligations hereunder by reason of any cause whatsoever of any nature or kind beyond their reasonable control. 
 11.2 Liability to Owners – (i) Without prejudice to sub-clause 11.1, the Managers shall be under no liability whatsoever to the Owners for any loss, damage, delay or expense of whatsoever nature, whether
direct or indirect, (including but not limited to loss of profit arising out of or in connection with detention of or delay to the Vessel) and howsoever arising in the course of performance of the Management Services UNLESS same is proved to
have resulted solely from the negligence, gross negligence or 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 management fee payable hereunder. 
 (ii) Notwithstanding anything that may appear to the contrary in this Agreement, the Managers shall not be liable for any of the actions of the Crew, even if such actions are negligent, grossly
negligent or willful, except only to the extent that they are shown to have resulted from a failure by the Managers to discharge their obligations under sub-clause 3.1, in which case their liability shall be limited in accordance with the
terms of this Clause 11. 
 11.3 Indemnity – Except to the extent and solely for the amount
therein set out that the Managers would be liable under sub-clause 11.2, the Owners hereby undertake to keep the Managers and their employees, agents and sub-contractors indemnified and to hold them harmless against all actions, proceedings,
claims, demands or liabilities whatsoever or howsoever arising which may be brought against them or incurred or suffered by them arising out of or in connection with the performance of the Agreement, and against and in respect of all costs, losses,
damages and expenses (including legal costs and expenses on a full indemnity basis) which the Managers may suffer or incur (either directly or indirectly) in the course of the performance of this Agreement. 
 11.4 “Himalaya” – It is hereby expressly agreed that no employee or agent of the Managers (including
every sub-

  
 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 
  

	 	contractor from time to time employed by the Managers) shall in any circumstances whatsoever be under any liability whatsoever to the Owners for any loss, damage or
delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his 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 11, every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defence and immunity of whatsoever nature applicable to the Managers or to which the Managers are entitled
hereunder shall also be available and shall extend to protect every such employees or agent of the Managers acting as aforesaid and for the purpose of all of the foregoing provisions of this Clause 11 the Managers are or shall be deemed to be
acting as agent or trustee on behalf of and for the benefit of all persons who are or might be their servants or agents from time to time (including sub-contractors as aforesaid) and all such persons shall to this extent be or be deemed to be
parties to this Agreement. 

  

	12.	Documentation 

 Where the
Managers are providing Technical Management in accordance with sub-clause 3.2 and/or Crew Management in accordance with sub-clause 3.1, they shall make available, upon Owners’ request, all documentation and records related to the
Safety Management System (SMS) and/or the Crew which the Owners need in order to demonstrate compliance with the ISM Code and STCW 95 or to defend a claim against a third party. 
  

	13.	General Administration 

 13.1 The Managers shall handle and settle all claims arising out of the Management Services hereunder and keep the Owners informed regarding any incident of which the Managers become aware which gives or may give rise to claims or
disputes involving third parties. 
 13.2 The Managers shall, as instructed by the Owners, bring or defend actions, suits
or proceedings in connection with matters entrusted to the Managers according to this Agreement. 
 13.3 The Managers
shall also have power to obtain legal or technical or other outside expert advice in relation to the handling and settlement of claims and disputes or all other matters affecting the interests of the Owners in respect of the Vessel, save managers
should obtain Owners approval prior to taking any action if time permits. 
 13.4 The Owners shall arrange for the
provision of any necessary guarantee bond or other security. 
 13.5 Any costs reasonably incurred by the Managers in
carrying out their obligations according to Clause 13 shall be reimbursed by the Owners. 
  

	14.	Auditing 

 The Managers
shall at all times maintain and keep true and correct accounts and shall make the same available for inspection and auditing by the Owners at such times as may be mutually agreed. On the termination, for whatever reasons, of this Agreement, the
Managers shall release to the Owners, if so requested, the originals where possible, or otherwise certified copies, of all such accounts and all documents specifically relating to the Vessel and her operation. 
  

	15.	Inspection of Vessel 

 The
Owners shall have the right at any time after giving reasonable notice to the Managers to inspect the Vessel for any reason they consider necessary. 
  

	16.	Compliance with Laws and Regulations 

 The Managers will not do or permit to be done anything which might cause any breach or infringement of the laws and regulations of the Vessel’s flag, or of the places where she trades, presently in
force. Any additional time and costs arising out of the requirements for compliance with rules and regulations (including research expenses) which may become enforceable on the Vessel shall be for Owners account. 
  

	17.	Duration of the Agreement 

 This Agreement shall come into effect on the day and year stated in Box 4 and shall remain in force and effect (unless earlier terminated in accordance with the terms of clause 18) for a minimum period of three (3) calendar years and
thereafter shall continue indefinitely unless terminated in accordance with the provisions hereof continue until the date stated in Box 17. Thereafter it shall continue until terminated by
Upon expiration of the first calendar year either party giving may give to the other notice of termination in writing, in which event the Agreement shall terminate upon the expiration of a period of two
months (2) calendar years from the date upon which such notice was given. Clause 18.6 will apply. 
  

	18.	Termination. 

 18.1
Owners’ default 
  

	 	(i)	The Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing if any moneys payable by the Owners under this Agreement and/or the
owners of any associated vessel, details of which are listed in Annex “D”, shall not have been received in the Managers’ nominated account within ten running days of receipt by the Owners of the Managers written request or if
the Vessel is repossessed by the Mortgagees. 

  

	 	(ii)	If the Owners: 

  

	 	(a)	fail to meet their obligations under sub-clauses 5.2 and 5.3 of this Agreement for any reason within their control, or 

  

	 	(b)	proceed with the employment of or continue to employ the Vessel in the carriage of contraband, blockade running, or in an unlawful trade, or on a voyage which in the
reasonable opinion of the Managers is unduly hazardous or improper, 

 the Managers may give notice of the default
to the Owners, requiring them to remedy it as soon as practically possible. In the event that the Owners fail to remedy it within a reasonable time to the satisfaction of the Managers, the Managers shall be entitled to terminate the Agreement with
immediate effect by notice in writing. 
 18.2 Managers’ Default 
 (i) If the Managers fail to meet their obligations under Clauses 3 and 4 of this Agreement for any reason within the control of
the Managers, the Owners may give notice to the Managers of the default, requiring them to remedy it as soon as practically possible. In the event that the Managers fail to remedy it within a reasonable time to the satisfaction of the Owners, the
Owners shall be entitled to terminate the Agreement with immediate effect by notice in writing. 
 (ii) If the Mangers are
convicted of, or admits guilt for, a crime, then the Owners shall be entitled to terminate the Agreement with immediate effect by notice in writing. 
 18.3 Extraordinary Termination 
 This Agreement shall
be deemed to be terminated in the case of the sale of the Vessel or if the Vessel becomes a total loss or is declared as a constructive or compromised or arranged total loss or is requisitioned. 
 18.4 For the purpose of sub-clause 18.3 hereof 
  

	 	(i)	the date upon which the Vessel is to be treated as having been sold or otherwise disposed of shall be the date on which the Owners cease to be registered as Owners of
the Vessel; 

  

	 	(ii)	the Vessel shall not be deemed to be lost unless either she has become an actual total loss or agreement has been reached with her underwriters in respect of her

 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 
  

 constructive, compromised or arranged total loss or if such agreement with her
underwriters is not reached it is adjudged by a competent tribunal that a constructive loss of the Vessel has occurred. 
 18.5 This Agreement shall terminate forthwith in the event of an order being made or resolution passed for the winding up, dissolution, liquidation or bankruptcy of either party (otherwise than for the purpose of
reconstruction or amalgamation) or if a receiver is appointed, or if it suspends payment, ceases to carry on business or makes any special arrangement of composition with its creditors. 
 18.6 The termination of this Agreement shall be without prejudice to all rights accrued due between the parties prior to the
date of termination. 
  

	19.	Law and Arbitration 

 19.1 This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the Arbitration
Act 1996 or any statutory modification 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 Association (LMAA) Terms current at the time when the arbitration proceedings are commenced. 
 The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice
of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within 14 calendar days of that notice and stating that it will appoints its arbitrator as sole arbitrator unless the other party appoints its
own arbitrator and gives notice that it has done so within the 14 days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within 14 days specified, the party referring a dispute to arbitration may,
without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if he had been
appointed by agreement. 
 Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for
the appointment of a sole arbitrator. 
 In case where neither the claim nor any counterclaim exceeds the sum of USD50,000 (or
such other sum as the parties may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced. 
 19.2 This Agreement shall be governed by and construed in accordance with Title 9 of the United States Code and the Maritime
Law of the United States and any dispute arising out of or in connection with this Agreement shall be referred to three persons at New York, one to be appointed by each of the parties hereto, and the third by the two so chosen; their decision or
that of any two of them shall be final, and for the purposes of enforcing any award, judgement may be entered on an award by any court of competent jurisdiction. The proceeding shall be conducted in accordance with the rules of the Society of
Maritime Arbitrators, Inc. 
 In case where neither the claim nor any counterclaim exceeds the sum of USD50,000
(or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the Shortened Arbitration Procedure of the Society of Maritime Arbitrators, Inc. current at the time when the arbitration proceedings are
commenced. 
 19.3 This Agreement shall be governed by and construed in accordance with the laws of the
place-mutually agreed by the parties and any dispute arising out of or in connection with this Agreement shall be referred to arbitration at a mutually agreed place, subject to the procedures applicable there. 
 19.4 If Box 18 in Part I is not appropriately filled in, sub-clause 19.1 of
this Clause apply. 
 Note: 19.1,
19.2 and 19.3 are alternatives; indicate alternative agreed in Box 18. 
  

	20.	Notices. 

 20.1 Any notice to be given by either party to the other party shall be in writing and may be sent by fax, telex, registered or recorded mail or by personal service. 
 20.2 The address of the Parties for service of such communication shall be as stated in Boxes 19 and 20, respectively.

 The Additional Clauses attached hereto together with any subsequent addenda, schedules, appendicies or otherwise, shall be construed as an
integral paort of this Agreement and shall be interpreted accordingly. 
  
 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. 

 

 

 SHIPMAN98 
 ADDITIONAL CLAUSES TO THE MANAGEMENT AGREEMENT 
 MADE BETWEEN:

 (I) NOEMI SHIPPING COMPANY LIMITED 
 AND 
 (II) SCORPIO SHIP MANAGEMENT SAM

  

	21.	OPA 

  

	21.1	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 Organisation, resources having
salvage, fire fighting, lightering and, if applicable, dispersant capabilities, and public relations/media personnel to assist the Owners to deal with the media in the event of discharges of oil. 

  

	21.2	The Managers are expressly authorised 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 21.1. The Managers are further expressly authorised 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 US Federal or State
laws. 

  

	21.3	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. 

  

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

  

	22.	IT Services 

  

	22.1	The Managers will, subject to the remaining provisions of this Clause 22, provide the Vessel with the Management System Software. 

  

	22.2	The main features of the Management System Software at the date of this Agreement are: 

  

	 	(i)	comprehensive management software providing single point of entry to the Vessel incorporating crew management, 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 Managers and their charterers; and 

 

	 	(iii)	a computerised maintenance system including inventory control and automated purchase order handling. 

  

	22.3	The cost for the Management System Software are set out in the Fee Schedule, and are included in the Vessel’s running cost, as follows: 

 

	 	(i)	the annual maintenance fee; 

  

	 	(ii)	maintenance and upgrades; 

  

	 	(iii)	24 hour support; 

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

  

	 	(v)	operational manuals and regular updates; 

  

	 	(vi)	annual audit on board the Vessel providing a system health check; 

  

	 	(vii)	user manuals and training of the Crew in the use of the Management System Software; and 

  

	 	(viii)	e-mail on board the Vessel. 

  

	22.4	Such costs do not include the costs of appropriate hardware, licence fee and installation/set-up on board the Vessel. 

  

	22.5	Installation and set-up of the Information System 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. 

  

	22.6	The Management System Software is owned by the Managers or its subsidiaries and is protected by applicable copyright and patent laws. 

  

	22.7	The Managers do not warrant that the use or operation of the Information System Software will be uninterrupted or error free. 

  

	23.	Vetting 

 The
Managers shall undertake as soon as reasonably possible to have the Vessel either inspected or screened by the following oil majors: BP, Shell, Exxonmobil, ChevronTexaco and Total. The cost of such vetting process is already included into the
Vessel’s budget. The Managers shall use their best endeavours to accommodate the Owners request for other/additional vetting inspections or screening process, the cost of which shall be, however, considered out of budget. 
  

	24.	Management Fee 

  

	24.1	Without prejudice to the generality of clause 8.3 (Management Fee), it is agreed that the remuneration provided for by that clause shall be deemed to cover the
Manager’s administrative and general expenses and any other expenses which are not directly and exclusively applicable to the operation or conduct of the business of the Vessel and shall include: 

 Salaries of corporate officers, executives, department heads, administrative, clerical and office employees, port engineers, port captain,
port stewards, paymaster and other employees of the shore side establishment, payroll taxes, group insurance and pension annuity payments applicable to personnel in the above named categories, office and administrative expenses, including insurance,
rent, heat, light, power, office stationary, office services, depreciation and repair of office equipment, janitor services and expenses, accounting expenses, the Managers’ outside auditing fees, dues and membership in trade associations,
office subscriptions, contributions and donations and franchise taxes, as well as legal fees in connection with the Managers’ corporate and management functions, excluding all and any legal fees or other expenses incurred by the Managers in
connection with any claims arising out of any matter related with the Vessel. 
  

	24.2	In addition to the remuneration payable to the Managers under the provisions of the first paragraph of this section, the Owners shall reimburse the Managers for, inter
alia, the amount of such necessary travelling expenses (outside Monaco), seafarers interviewing costs, telephone calls, communication, vessel’s postage, freight and forwarding, warehousing, agency services and fees which are not included in
budget and will be treated as contingency costs. 

  

	25.	Dry docking 

 Dry
docking to be carried out with prior approval of costs by the Owners, however the repair list to be at the discretion of the Managers 

	26.	Benefit of Existing and Future Contracts 

 Where possible, the Owners shall (for the duration of this Agreement) have the advantage of any existing or future contracts of the Managers for the purchase or renewal of materials, facilities, services
or equipment, by way of the benefit of discounts (if any). 
  

	27.	Passing of Title 

  

	27.1	To the extent already paid for by the Managers using funds specifically provided by the Owners for such a purpose, title to any goods, materials or supplies
purchased by the Managers for use in the performance of this Agreement shall belong to the Owners. 

  

	27.2	Upon termination of this Agreement all such goods, materials or supplies in the hands of the Managers shall be delivered to the Vessel or if requested by the
Owners the Managers shall sell or dispose of such goods, materials or supplies at such price, terms and conditions as may be approved by the Owners and remit the proceeds thereof less any expenses incurred in selling or disposing of such goods to an
account of the Owners, to be advised separately in writing to the Managers. 

  

	28.	Termination on Bareboat Charter of Vessel 

 The Managers shall be entitled to terminate this Agreement by notice in writing in the event that the Vessel is bareboat chartered by the Owners. The date upon which the Vessel is to be treated as having
been bareboat chartered, shall be the date on which the Owners deliver the Vessel to bareboat charterer, notwithstanding the fact that the Managers may learn of the bareboat charter at a later date. 
  

	29.	Slop and any other disposal ashore 

 Disposal of slop produced for whatever reason (including but not limited to tank inspection, repairs, drydock preparation, tank cleaning) and any other disposal ashore compulsory as per local regulation
is considered out of budget and the Owners shall provide the Managers with such additional funds as may be required. 
  

	30.	ISPS Code 

  

	30.1	The Manager shall comply with the requirements of the International Code for the Security of Ships and of Port Facilities and the relevant amendments to Chapter
XI of SOLAS (ISPS Code) relating to the Vessel and “the Company” (as defined by the ISPS Code). If trading to or from the United States or passing through United States waters, in addition to ensure that the Vessel has been issued with a
COFR, the Manager shall also comply with the requirements of the US Maritime Transportation Security Act 2002 (the “MTSA”) relating to the Vessel and the “Owner” (as defined by the MTSA). 

  

	30.2	Where sub-chartering, the Owner shall ensure that the contact details of all sub-charterers are provided to the Managers and the Master. Furthermore, the Owners
shall ensure that all charter parties entered into during the period of this Agreement contain the following provision: 

 “The Charterers shall provide the Owners with their full style contact details and, where sub-chartering is permitted under the terms of the charter party, shall ensure that the contact details of all sub-charterers are likewise
provided to the Owners”. 
  

	30.3	Notwithstanding anything else contained in this Agreement all costs or expenses whatsoever arising out of or related to security regulations or measures required
by the port facility or any relevant authority in accordance with the ISPS Code and/or the MTSA including, but not limited to, security guards, launch services, vessel escorts, security fees, waiting costs and associated expenses, taxes and
inspections, shall be out of budget. All measures required by the Manager to comply with the Ship Security Plan shall be for the Manager’s account excluding costs associated with calls at non ISPS compliant port, facilities, installations,
vessels or port, facilities, installations, vessels included in any relevant authority warning list (ie USCG Port Security Advisory) as applicable in which case Owners shall provide Managers with such additional funds as may be required.

  

	31.	Additional Costs 

 The Owners’ representative’s meals and slop chest, charterers’ meal and slop chest, representation costs, gratuity (either official or not official) provided with the aim to safeguard Vessel’s operation and given in the
sole discretion of Master will be separately debited to the Owners at cost. Any extraordinary trading cost (including but not limited to AMPD, COFR, ENOA/D, ICB, EWR coverage, Ransom and Kidnap coverage, security guard, special arrangement for
transiting pirate infested areas etc), will be debited to Owners at cost, out of budget, contingency accounting code. 

	32.	Provision of Information 

 The Owners undertake to provide to the Managers directly or through the charterers all information and instruction necessary for the Master to efficiently perform his duties including but not limited to: charterers name and full style,
cargo information including MSDS, cargo carriage instruction relevant to the particular cargo (loading, segregating, carrying, heating, discharging, purging, ventilating, tank cleaning, inerting, stripping, CO washing instruction), port and terminal
information and requirements, navigation instruction, speed to be attained, notification requirement, agency full style, fuel MSDS, bunker delivery notes, information necessary for AMS reporting, chartering contracts the Owners will enter into,
voyage instructions including service speeds to attain. 
  

	33.	HSQE blanket approval clause 

 The Owner undertakes to provide full support for the implementation and approval of the Managers’ health, safety, quality and environment policy including extra costs which could be from time to time
communicated to Owners. 
  

	34.	Cabotage, storage and STS 

 Cabotage, storage and frequent STS are not considered normal operations and a special evaluation of risk and extra costs will be provided on a case by case basis by the Managers. The Owners shall make available to the Managers such
additional funds as may be required in order for such additional duties to be carried out. 
  

	35.	Payments 

 All
payments to the Managers shall be made in (i) full without any deductions, withholdings and/or set-off and (ii) US Dollars, to the account of the Managers from time to time advised to the Owners by the Managers. 
  

	36.	Third Party Rights 

  

	36.1	Any person (other than parties to this Agreement) who is given any rights or benefits under Clauses 10 or 11 (a “Third Party”) shall be entitled to enforce
those rights or benefits against the parties in accordance with the Contracts (Right of Third Parties) Act 1999. 

  

	36.2	Save as provided in Clause 36.1 above the operation of the Contracts (Rights of Third Parties) Act 1999 is hereby excluded. 

  

	36.3	The parties may amend vary or terminate this Agreement in such a way as may affect any rights or benefits of any Third Party which are directly enforceable against the
parties under the Contracts (Rights of Third Parties) Act 1999 without the consent of any such Third Party. 

  

	36.4	Any Third Party entitled pursuant to the Contracts (Rights of Third Parties) Act 1999 to enforce any rights or benefits conferred on it by this Agreement may not veto
any amendment, variation or termination of this Agreement which is proposed by the parties and which may affect the rights or benefits of any such Third Party. 

  

	37.	Bunker Quality 

  

	37.1	The Owners shall provide that bunker supplied is of quality suitable for burning in the Vessel’s engines and auxiliaries and which conform to the specification(s)
mutually agreed under this contract. 

  

	37.2	At the time of delivery of the Vessel the Owners shall place at the disposal of the Managers, the bunker delivery note(s) and any samples relating to the fuels existing
on board. During the currency of the contract, the Owner shall ensure that bunker delivery notes are presented to the Vessel on the delivery of fuel(s) and that during bunkering representative samples of the fuel(s) supplied shall be taken at the
Vessel’s bunkering manifold and sealed in the presence of competent representatives of the fuel supplier and the Vessel as foreseen by Marpol. 

  

	37.3	Without prejudice to anything else contained in this contract, the Owners shall provide that fuel supplied is of such specifications and grades to permit the Vessel, at
all times, to comply with the maximum sulphur content requirements of any emission control zone when the Vessel is ordered to trade within that zone. 

	37.4	The Owners also warrant that any bunker suppliers, bunker craft operators and bunker surveyors used by the Owners to supply such fuels shall comply with
Regulations 14 and 18 of MARPOL Annex VI as applicable, including the Guidelines in respect of sampling and the provision of bunker delivery notes. 

  

	37.5	Owners to provide as well that a bunker minimum quantity is always kept on board corresponding to 10% of any type of bunker necessary for any particular voyage
or 3 days whichever is more. For vessel with a single boiler system, minimum 30 tons of distillate to be always kept on board. Commingling of bunker is not recommended and special manager permission to be obtained on a case by case basis. Managers
not to be held responsible for any consequence of commingling. 

  

	38.	War, war risk areas trading. 

  

	38.1	Managers prior assessment to be always sought before to order the vessel to trade in any war, warlike area as defined by JWC and any cost directly or indirectly
incurred as a consequence to obey to said order will be out of budget and debited to the Owners as contingency. 

  

	38.2	For the purpose of this clause, the words war risk shall include any actual, threatened or reported war; act of war; civil war; hostilities; revolution;
rebellion; civil commotion; warlike operations; laying of mines; acts of piracy; acts of terrorists; acts of hostility or malicious damage; blockades (whether imposed against all vessels or imposed selectively against vessels of certain flags or
ownership, or against certain cargoes or crews or otherwise howsoever); by any person, body, terrorist or political group, or the Government of any state whatsoever, which, in the reasonable judgment of the Managers, may be dangerous or are likely
to be or to become dangerous to the Vessel, her cargo, crew or other persons on board the vessel. 

  

	39.	Ice trading. 

 Manager prior assessment to be always sought before to order the vessel to trade in any ice bound area as defined by IWL or by prevailing local condition and any cost directly or indirectly incurred as a consequence to obey to said order
will be out of budget and debited to owner as contingency. 
  

	40.	Sub-let. 

 Any
extra cost and expenses necessary for owner to perform any sub letting charterer contract are excluded from budget. Take over cost are excluded from budget and vessel is supposed to be fully stocked at delivery 
  

	41.	Entire Agreement. 

  

	41.1	This agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter of this Agreement; and (in relation to
such subject matter) supersedes all prior discussions, understandings and agreements between the parties and all prior representations and expressions of opinion by the parties. 

  

	41.2	Each of the parties acknowledges that it is not relying on any statements, warranties, representations or understandings (whether negligently or innocently made)
given or made by or on behalf of the other in relation to the subject matter hereof and that it shall have no rights or remedies with respect to such subject matter otherwise than under this Agreement. The only remedy available shall be for breach
of contract under the terms of this Agreement. Nothing in this Clause shall, however, operate to limit or exclude any liability or fraud. 

 Dated this 1st day of DECEMBER 2009Technical Management Agreement between Senatore Shipping Company Limited and SSM

 Exhibit 10.9 

 

 

											
	
 

	 	1.	 	 Date of Agreement
 December
1, 2009
	 		 	 THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
  
	 	

	 		 		 		 	 STANDARD SHIP MANAGEMENT AGREEMENT
  

CODE NAME: “SHIPMAN 98”
  
 Part 1
  

	 	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
 Senatore Shipping Company Limited
	 		 	 Name
 Scorpio Ship Management sam

	 		 	 Place of registered office
 Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands
	 		 	 Place of registered office
 9 blvd Charles III, MH98000 Monaco

	 		 	 Law of registry
 Marshall Islands
	 		 	 Law of registry
 Principality of Monaco

	 	4.	 	 Day and year of commencement of Agreement (Cl.2)
 December 1, 2009

	 	5.	 	 Crew Management (state “yes” or “no” as agreed (Cl.3.1)
 YES
	 	6.	 	 Technical Management (state “yes” or “no” as agreed)
(Cl.3.2)
 YES

	 	7.	 	 Commercial Management (state “yes” or “no” as agreed)
(Cl.3.3)
 NO
	 	8.	 	 Insurance Arrangements (state “yes” or “no” as agreed)
(Cl.3.4)
 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)

 NO

	 	13.	 	 Chartering Services Period (only to be filled in if “yes” stated in Box 7)
(Cl.3.3(i))
 NO
	 	14.	 	 Owner’s Insurance (state alternative (i), (ii) or
(iii) of (Cl.6.3)
 6.3(i) to apply

	 	15.	 	 Annual Management Fee (state annual amount) (Cl.8.1)
 US$200,000.-
	 	16.	 	 Severance Costs (state maximum amount) (Cl.8.4(ii))

 For Owners’ account: please see clause 8.4 (ii)

	 	17.	 	 Day and year of termination of Agreement (Cl.17)
 See clause 17.
	 	18.	 	 Law and Arbitration (state alternative 19.1, 19.2 or
19.3; if 19.3 place of arbitration must be stated) (Cl.19)
 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 Scorpio Commercial Management sam
 9 blvd Charles III
 MC98000 Monaco

  
	 	20.	 	 Notices (state postal and cable address, telex and telefax number for serving
notice and communication to the Managers) (Cl. 20)
 9 blvd Charles III
 MC98000 Monaco
 phone +377 97985700

 fax +377 92057045
 e-mail:
technical@scorpio.mc

 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. 

 

 

 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 

 In this
Shipman 98 form (together with the Additional Clauses of even date herewith and any Schedules thereto (the “Agreement”)) save where the context otherwise requires, the following words and expressions shall have the meanings hereby assigned
to them. 
 “Owners” means the party identified in Box 2. 
 “Managers” means the party identified in Box 3. 
 “Vessel” means the vessel or vessels details of which are set out in Annex “A” attached hereto. 

“Crew” means the Master, officers and ratings of the numbers, rank and nationality specified in Annex
“B” attached hereto. 
 “Crew Support Costs” means all expenses of a general nature which are not
particularly referable to any individual vessel for the time being managed by the Managers and which are incurred by the Managers for the purpose of providing an efficient and economic management service and, without prejudice to the generality of
the foregoing, shall include the cost of crew standby pay, training schemes for officers and ratings, cadet training schemes, sick pay, study pay, recruitment and interviews. 
 “Severance Costs” means the costs which the employers are legally obliged to pay to or in respect of the Crew as a result of
the early termination of any employment contract for service on the Vessel. 
 “Crew Insurances” means
insurances against crew risks which shall include but not be limited to death, sickness, repatriation, injury, shipwreck unemployment indemnity and loss of personal effects. 
 “Management Services” means the services specified in sub-clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to
12. 
 “ISM Code” means the International Management Code for the Safe Operation of Ships and for
Pollution Prevention as adopted by the International Maritime Organization (IMO) by resolution A.741(18) or any subsequent amendment thereto. 
 “STCW 95” means the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978, as amended in 1995 or any subsequent amendment thereto.

  

	2.	Appointment of Managers 

 With effect from the day and year stated in Box 4 and continuing unless and until terminated as provided herein, the Owners hereby appoint the Managers and the Managers hereby agree to act as the Managers of the Vessel. 

 

	3.	Basis of Agreement 

 Subject to the terms and conditions herein provided, during the period of this Agreement, the Managers shall carry out Management Services in respect of the Vessel as agents for and on behalf of the Owners. The Managers shall have authority
to take such actions as they may from time to time in their absolute discretion consider to be necessary to enable them to perform this Agreement in accordance with sound ship management practice. 
  

	 	3.1	Crew Management 

 (only
applicable if agreed according to Box 5) 
 The Managers shall provide suitably qualified Crew for the Vessel as
required by the Owners in accordance with the STCW 95 requirements, provision of which includes but is not limited to the following functions: 
  

	 	(i)	selecting and engaging the Vessel’s - Crew, including payroll arrangements, pension administration, and insurances for the Crew other than those mentioned in
Clause 6; 

  

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

  

	 	(iii)	ensuring that all members of the Crew have passed a medical examination with a qualified doctor certifying that they are fit for the duties for which they are engaged
and are in possession of valid medical certificates issued in accordance with appropriate flag State requirements. In the absence of applicable flag State requirements the medical certificate shall be dated not more than three months prior
to the respective Crew members leaving their country of domicile and maintained for the duration of their service on board the Vessel; 

  

	 	(iv)	ensuring that the Crew shall have a command of the English language of a sufficient standard to enable them to perform their duties safely; 

  

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

  

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

  

	 	(vii)	conducting union negotiations; 

  

	 	(viii)	operating the Managers’ drug and alcohol policy unless otherwise agreed. 

  

	 	3.2	Technical Management 

 (only applicable if agreed according to Box 6) 
 The Managers shall provide technical management which
includes, but is not limited to, the following functions: 
  

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

  

	 	(ii)	arrangement and supervision of dry dockings, repairs, alterations and the upkeep of the Vessel to the standards required by the Owners provided that the Managers shall
be entitled to incur the necessary expenditure to ensure that the Vessel will comply with the law of the flag of the Vessel and of the places where she trades, and all requirements and recommendations of the classification Society;

  

	 	(iii)	arrangement of the supply of necessary victualling, stores, spares, and lubricating oil and services for the Vessel; 

  

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

  

	 	(v)	development, implementation and maintenance of a Safety Management System (SMS) in accordance with the ISM Code and an ISPS (see sub-clauses 4.2 and 5.3).

  

	 	3.3	Commercial Management 

 (only applicable if agreed according to Box 7) 
 The Managers shall provide the commercial operation of the Vessel, as required by the Owners, which includes, but is not limited to, the following functions: 
  

	 	(i)	providing chartering services in accordance with the Owners’ instructions which include, but are not limited to, seeking and negotiating
employment for the Vessel and the conclusion (including the execution thereof )of charter parties or other contracts relating to the employment of the Vessel. If such a contract exceeds the period stated in Box
13, consent thereto in writing shall first be obtained from the Owners. 

  

	 	(ii)	arranging of the proper payment to Owners or their nominees of all hire and/or freight revenues or other moneys of whatsoever nature to which
Owners may be entitled arising out of the employment of or otherwise in connection with the Vessel. 

  

	 	(iii)	providing voyage estimates and accounts and calculating of hire, freights, demurrage and/or despatch moneys due from or due to the charterers
of the Vessel; 

  

	 	(iv)	issuing of voyage instructions; 

  

	 	(v)	appointing agents; 

  

	 	(vi)	appointing stevedores; 

  

	 	(vii)	arranging surveys associated with the commercial operation of the Vessel. 

  

	 	3.4	Insurance Arrangements’ 

 (only applicable if agreed according to Box 8) 
 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 
  

 The Managers shall arrange insurances in accordance with Clause 6, on such terms and conditions as the
Owners shall have instructed or agreed, in particular regarding conditions, insured values, deductibles and franchises. 
  

	3.5	Accounting Services 

 (only applicable
if agreed according to Box 9) 
 The Managers shall: 
  

	(i)	establish an accounting system which meets the requirements of the Owners and provide regular accounting services, supply regular reports and records,

  

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

  

	3.6	Sale or Purchase of the Vessel 

 (only
applicable if agreed according to Box 10) 
 The Managers shall, if so requested and in accordance with the Owners’ instructions,
provide technical assistance in connection with any sale of the Vessel, supervise the sale or purchase of the Vessel, including the performance of any sale or purchase agreement, but not negotiation of the same. Any time lost by the Vessel and cost
associated with sale and purchase of the Vessel will be considered as contingency and out of budget (please refer to clause 8.10 hereto). 
  

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

 The Managers shall arrange for the supply of provisions. 
  

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

 The Managers shall arrange for the provision of bunker fuel of the quality specified by the Owners as required for the
Vessel’s trade. 
  

	4.	Managers’ Obligations 

 4.1 The Managers undertake to use their best endeavours to provide the agreed Management Services as agents for and on behalf of the Owners in accordance with sound ship management practice and to protect and promote the interests of
the Owners in all matters relating to the provision of services hereunder. Provided, however, that the Managers in the performance of their management responsibilities under this Agreement shall be entitled to have regard to their overall
responsibility in relation to all vessels as may from time to time be entrusted to their management and in particular, but without prejudice to the generality of the foregoing, the Managers shall be entitled to allocate available supplies, manpower
and services in such manner as in the prevailing circumstances the Managers in their absolute discretion consider to be fair and reasonable. 
 4.2 Where the Managers are providing Technical Management in accordance with sub-clause 3.2, they shall procure that the requirements of the law of the flag of the Vessel are satisfied and
they shall in particular be deemed to be the “Company” as defined by the ISM Code, assuming the responsibility for the operation of the Vessel and taking over the duties and responsibilities imposed by the ISM Code when applicable.

  

	5.	Owners’ Obligations 

 5.1 The Owners shall pay all sums due to the Managers punctually in accordance with the terms of this Agreement. 
 5.2 Where the Managers are providing Technical Management in accordance with sub clause 3.2, the Owners shall: 
  

	 	(i)	procure that all officers and ratings supplied by them or on their behalf comply with the requirements of STCW 95; 

  

	 	(ii)	instruct such officers and ratings to obey all reasonable orders of the Managers in connection with the operation of the Managers’ safety management
system. 

 5.3 Where the Managers are not providing Technical Management in accordance with
sub clause 3.2, the Owners shall procure that the requirements of the law of the flag of the Vessel are satisfied and that they, or such other entity as
may be appointed by them and identified to the Managers, shall be deemed to be the “Company” as defined by the ISM Code assuming the responsibility for the operation of the Vessel and taking over the duties and responsibilities imposed by
the ISM Code when applicable. 
  

	6.	Insurance Policies 

 The
Owners shall procure, whether by instructing the Managers under sub-clause 3.4 or otherwise, that throughout the period of this Agreement: 
 6.1 at the Owners’ expense, the Vessel is insured for not less than her sound market value or entered for her full gross tonnage, as the case may be for: 
  

	 	(i)	usual hull and machinery marine risks (including crew negligence) and excess liabilities; 

  

	 	(ii)	protection and indemnity risks (including pollution risks and Crew Insurances, FDD cover); and 

  

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

  

	 	(iv)	Loss of Hire (TBA) 

 in
accordance with the best practice of prudent owners of vessels of a similar type to the Vessel, with first class insurance companies, underwriters or associations (“the Owners’ Insurances”); 
 6.2 all premiums and calls on the Owners’ Insurances are paid promptly by their due date, 
 6.3 the Owners’ Insurances name the Managers and, subject to underwriters’ agreement, any third party designated by the
Managers as a joint assured, with full cover, with the Owners obtaining cover in respect of each of the insurances specified in sub-clause 6.1: 
  

	 	(i)	on terms whereby the Managers and any such third party are liable in respect of premiums or calls arising in connection with the Owners’ Insurances; or

  

	 	(ii)	if reasonably obtainable, on terms such that neither the Managers nor any such third party shall be under any liability in respect of premiums or calls arising
in connection with the Owners’ Insurances; or 

  

	 	(iii)	on such other terms as may be agreed in writing indicate alternative (i), (ii) or (iii) in Box 14. If
Box 14 is left blank then (i) applies. 

 6.4
written evidence is provided, to the reasonable satisfaction of the Managers, of their compliance with their obligations under Clause 6 within a reasonable time of the commencement of the Agreement, and of each renewal date and, if
specifically requested, of each payment date of the Owners’ Insurances. 
  

	7.	Income Collected and Expenses Paid on Behalf of Owners 

 7.1 All moneys collected by the Managers under the terms of this Agreement (other than moneys payable by the Owners to the Managers) and any interest thereon shall be held to the credit of the
Owners in a separate bank account. 
 7.2 All expenses incurred by the Managers under the terms of this Agreement on
behalf of the Owners (including expenses as provided in Clause 8) may be debited against the Owners in the account referred to under sub-clause 7.1 but shall in any event remain payable by the Owners to the Managers on demand.

  

	8.	Management Fee- see also Additional Clause 24 

 8.1 The Owners shall pay to the Managers for their services as Managers under this Agreement an annual management fee as stated in Box 15 which shall be payable by equal monthly instalments
in advance, the first instalment being payable on the commencement of this Agreement (see Clause 2 and Box 4) and subsequent instalments being payable every month. 
 8.2 The management fee shall be subject to an annual review on the anniversary date of the Agreement and the proposed fee shall be
presented in the annual budget referred to in sub-clause 9.1. 
  

 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 
  

 8.3 The Managers shall, at no extra cost to the Owners, provide their own office
accommodation, office staff, facilities and stationery. Without limiting the generality of Clause 7 the Owners shall reimburse the Managers for postage and communication expenses, travelling expenses, and other out of pocket expenses properly
incurred by the Managers in pursuance of the Management Services. 
 8.4 In the event of the appointment of the Managers
being terminated by the Owners or the Managers in accordance with the provisions of Clauses 17 and 18 other than by reason of default by the Managers, or if the Vessel is lost, sold or otherwise disposed of, the “management
fee” payable to the Managers according to the provisions of sub-clause 8.1, shall continue to be payable for a further period of three calendar months as from the termination date. In addition, provided that the Managers provide Crew for
the Vessel in accordance with sub-clause 3.1: 
  

	 	(i)	the Owners shall continue to pay Crew Support Costs during the said further period of three calendar months and 

  

	 	(ii)	the Owners shall pay an equitable proportion of any the Severance Costs in full which may materialize, not exceeding the amount stated in
Box 16. 

 8.5 If the Owners decide to lay-up the
Vessel whilst this Agreement remains in force and such lay-up lasts for more than three months, an appropriate reduction of the management fee for the period exceeding three months until one month before the Vessel is again put into service shall be
mutually agreed between the parties. 
 8.6 Unless otherwise agreed in writing all discounts and commissions obtained by
the Managers in the course of the management of the Vessel shall be credited to the Owners. 
 8.7 Where a charterers
vetting inspection may be required and a pre-inspection is requested, the costs of such additional services shall be charged to the Vessel’s account (see cl. 23) 
 8.8 If the Vessel is placed on time charter, additional expenses 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. 
 8.9 All fees are exclusive of Value Added Taxes or other applicable taxes,
if any. 
 8.10 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 entitled to 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. 
  

	9.	Budgets and Management of Funds 

 9.1 The Managers shall present to the Owners annually a budget for the following twelve months in such form as the Owners require. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent
annual budgets shall be prepared by the Managers and submitted to the Owners not less than three months one month before the anniversary date of the commencement of this Agreement (see Clause 2 and Box 4). 
 9.2 The Owners shall indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and
in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed budget. 
 9.3 Following the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessel and the Managers shall each month up-date this estimate. Based thereon,
the Managers shall each month request the Owners in writing for the funds required to run the Vessel for the ensuing month, including the payment of any occasional or extraordinary item of expenditure, such as emergency repair costs, additional
insurance premiums, bunkers or provisions. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Owners in a separate bank
account. 
 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessel
in such form as required by the Owners monthly on a quarterly basis or at such other intervals as mutually agreed. 
 9.5 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their own funds to finance the provision of the Management
Services. 
  

	10.	Managers’ Right to Sub-Contract 

 The Managers shall not have the right to sub-contract any of their obligations hereunder, including those mentioned in sub-clause 3.1, without the prior written consent of the Owners which shall
not be unreasonably withheld. In the event of such a sub-contract the Managers shall remain fully liable for the due performance of their obligations under this Agreement. 
  

	11.	Responsibilities 

 11.1 Force Majeure - Neither the Owners nor the Managers shall be under any liability for any failure to perform any of their obligations hereunder by reason of any cause whatsoever of any nature or kind beyond their
reasonable control. 
 11.2 Liability to Owners - (i) Without prejudice to sub-clause 11.1, the
Managers shall be under no liability whatsoever to the Owners for any loss, damage, delay or expense of whatsoever nature, whether direct or indirect, (including but not limited to loss of profit arising out of or in connection with detention of or
delay to the Vessel) and howsoever arising in the course of performance of the Management Services UNLESS same is proved to have resulted solely from the negligence, gross negligence or 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 management
fee payable hereunder. 
 (ii) Notwithstanding anything that may appear to the contrary in this Agreement, the Managers shall not
be liable for any of the actions of the Crew, even if such actions are negligent, grossly negligent or wilful, except only to the extent that they are shown to have resulted from a failure by the Managers to discharge their obligations under
sub-clause 3.1, in which case their liability shall be limited in accordance with the terms of this Clause 11. 
 11.3 Indemnity - Except to the extent and solely for the amount therein set out that the Managers would be liable under sub-clause 11.2, the Owners hereby undertake to keep the Managers and their employees,
agents and sub-contractors indemnified and to hold them harmless against all actions, proceedings, claims, demands or liabilities whatsoever or howsoever arising which may be brought against them or incurred or suffered by them arising out of or in
connection with the performance of the Agreement, and against and in respect of all costs, losses, damages and expenses (including legal costs and expenses on a full indemnity basis) which the Managers may suffer or incur (either directly or
indirectly) in the course of the performance of this Agreement. 
 11.4 “Himalaya” - It is hereby
expressly agreed that no employee or agent of the Managers (including every sub-contractor

  

 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 
  

 
from time to time employed by the Managers) shall in any circumstances whatsoever be under any liability whatsoever to the Owners for any loss, damage or delay of whatsoever kind arising or
resulting directly or indirectly from any act, neglect or default on his 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 11, every
exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defence and immunity of whatsoever nature applicable to the Managers or to which the Managers are entitled hereunder shall also be available and
shall extend to protect every such employee or agent of the Managers acting as aforesaid and for the purpose of all the foregoing provisions of this Clause 11 the Managers are or shall be deemed to be acting as agent or trustee on behalf of
and for the benefit of all persons who are or might be their servants or agents from time to time (including sub-contractors as aforesaid) and all such persons shall to this extent be or be deemed to be parties to this Agreement. 
  

	12.	Documentation 

 Where the
Managers are providing Technical Management in accordance with sub-clause 3.2 and/or Crew Management in accordance with sub-clause 3.1, they shall make available, upon Owners’ request, all documentation and records related to the
Safety Management System (SMS) and/or the Crew which the Owners need in order to demonstrate compliance with the ISM Code and STCW 95 or to defend a claim against a third party. 
  

	13.	General Administration 

 13.1 The Managers shall handle and settle all claims arising out of the Management Services hereunder and keep the Owners informed regarding any incident of which the Managers become aware which gives or may give rise to claims or
disputes involving third parties. 
 13.2 The Managers shall, as instructed by the Owners, bring or defend actions, suits
or proceedings in connection with matters entrusted to the Managers according to this Agreement. 
 13.3 The Managers
shall also have power to obtain legal or technical or other outside expert advice in relation to the handling and settlement of claims and disputes or all other matters affecting the interests of the Owners in respect of the Vessel, save managers
should obtain Owners approval prior to taking any action if time permits. 
 13.4 The Owners shall arrange for the
provision of any necessary guarantee bond or other security. 
 13.5 Any costs reasonably incurred by the Managers in
carrying out their obligations according to Clause 13 shall be reimbursed by the Owners. 
  

	14.	Auditing 

 The Managers
shall at all times maintain and keep true and correct accounts and shall make the same available for inspection and auditing by the Owners at such times as may be mutually agreed. On the termination, for whatever reasons, of this Agreement, the
Managers shall release to the Owners, if so requested, the originals where possible, or otherwise certified copies, of all such accounts and all documents specifically relating to the Vessel and her operation. 
  

	15.	Inspection of Vessel 

 The
Owners shall have the right at any time after giving reasonable notice to the Managers to inspect the Vessel for any reason they consider necessary. 
  

	16.	Compliance with Laws and Regulations 

 The Managers will not do or permit to be done anything which might cause any breach or infringement of the laws and regulations of the Vessel’s flag, or of the places where she trades, presently in
force. Any additional time and costs arising out of the requirements for compliance with rules and regulations (including research expenses) which may become enforceable on the Vessel shall be for Owners account. 
  

	17.	Duration of the Agreement 

 This Agreement shall come into effect on the day and year stated in Box 4 and shall remain in force and effect (unless earlier terminated in accordance with the terms of clause 18) for a minimum period of three (3) calendar
years and thereafter shall continue indefinitely unless terminated in accordance with the provisions hereof continue until the date stated-in Box 17. Thereafter it shall
continue until terminated by Upon expiration of the first calendar year either party giving may give to the other notice of termination in writing, in which event the Agreement shall terminate upon the expiration of a
period of two months (2) calendar years from the date upon which such notice was given. Clause 18.6 will apply. 
  

	18.	Termination 

 18.1
Owners’ default 
  

	 	(i)	The Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing if any moneys payable by the Owners under this Agreement and/or the
owners of any associated vessel, details of which are listed in Annex “D”. shall not have been received in the Managers’ nominated account within ten running days of receipt by the Owners of the Managers written request or if
the Vessel is repossessed by the Mortgagees. 

  

	 	(ii)	If the Owners: 

  

	 	(a)	fail to meet their obligations under sub-clauses 5.2 and 5.3 of this Agreement for any reason within their control, or 

  

	 	(b)	proceed with the employment of or continue to employ the Vessel in the carriage of contraband, blockade running, or in an unlawful trade, or on a voyage which in the
reasonable opinion of the Managers is unduly hazardous or improper, the Managers may give notice of the default to the Owners, requiring them to remedy it as soon as practically possible. In the event that the Owners fail to remedy it within a
reasonable time to the satisfaction of the Managers, the Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing. 

 18.2 Managers’ Default 
 (i) If the Managers fail
to meet their obligations under Clauses 3 and 4 of this Agreement for any reason within the control of the Managers, the Owners may give notice to the Managers of the default, requiring them to remedy it as soon as practically
possible. In the event that the Managers fail to remedy it within a reasonable time to the satisfaction of the Owners, the Owners shall be entitled to terminate the Agreement with immediate effect by notice in writing. 
 (ii) If the Managers are convicted of, or admits guilt for, a crime, then the Owners shall be entitled to terminate the Agreement with
immediate effect by notice in writing. 
 18.3 Extraordinary Termination 
 This Agreement shall be deemed to be terminated in the case of the sale of the Vessel or if the Vessel becomes a total loss or is
declared as a constructive or compromised or arranged total loss or is requisitioned. 
 18.4 For the purpose of
sub-clause 18.3 hereof 
  

	 	(i)	the date upon which the Vessel is to be treated as having been sold or otherwise disposed of shall be the date on which the Owners cease to be registered as Owners of
the Vessel; 

  

	 	(ii)	 the Vessel shall not be deemed to be lost unless either she has become an actual total loss or agreement has been reached with her underwriters in
respect of her

  

 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 
  

	 	 
constructive, compromised or arranged total loss or if such agreement with her underwriters is not reached it is adjudged by a competent tribunal that a constructive loss of the Vessel has
occurred. 

 18.5 This Agreement shall terminate forthwith in the event of an order being made or
resolution passed for the winding up, dissolution, liquidation or bankruptcy of either party (otherwise than for the purpose of reconstruction or amalgamation) or if a receiver is appointed, or if it suspends payment, ceases to carry on business or
makes any special arrangement or composition with its creditors. 
 18.6 The termination of this Agreement shall be
without prejudice to all rights accrued due between the parties prior to the date of termination. 
  

	19.	Law and Arbitration 

 19.1 This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the Arbitration
Act 1996 or any statutory modification 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 Association {LMAA) Terms current at the time when the arbitration proceedings are commenced. 
 The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice
of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within 14 calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its
own arbitrator and gives notice that it has done so within the 14 days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the 14 days specified, the party referring a dispute to arbitration
may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if he had been
appointed by agreement. 
 Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for
the appointment of a sole arbitrator. 
 In cases where neither the claim nor any counterclaim exceeds the sum of USD50,000 (or
such other sum as the parties may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced. 
 19.2 This Agreement shall be governed by and construed in accordance with Title 9 of the United States-Code
and the Maritime Law of the United States Code and the Maritime Law of the United States and any dispute arising out of or in connection with this Agreement shall be referred-to three-persons at New York, one to fee
appointed by each of the parties hereto, and the third by the two chosen; their decision or that of any two of them shall be final, and for the purposes of enforcing any award, judgement may be entered-on an award by any court of competent
jurisdiction. The proceedings shall-be conducted in accordance with the rules of the Society of Maritime Arbitrators, Inc. 
 In cases where neither the claim nor any counterclaim exceeds the sum of USD50,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the Shortened
Arbitration Procedure of the Society-of Maritime-Arbitrators, Inc. current at the time when the arbitration proceedings are commenced. 
 19.3 This Agreement shall-be governed by and-construed in accordance with the laws of the place mutually agreed by the parties and any dispute arising out of or in connection with this
Agreement shall be referred to arbitration at a mutually agreed place, subject to the procedures applicable there. 
 19.4 If Box 18 in Part I is not appropriately filled in, sub-clause 19.1 of this Clause shall apply. 
 Note: 19.1, 19.2 and 19.3 arc alternatives: indicate alternative-agreed-in Box 18. 
  

	20.	Notices 

 20.1 Any
notice to be given by either party to the other party shall be in writing and may be sent by fax, telex, registered or recorded mail or by personal service. 
 20.2 The address of the Parties for service of such communication shall be as stated in Boxes 19 and 20, respectively. 
 The Additional Clauses attached hereto together with any subsequent addenda, schedules, appendices or otherwise, shall be construed as an integral part of this Agreement and shall be interpreted
accordingly. 
  

 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. 

 

 

 SHIPMAN 98 
 ADDITIONAL CLAUSES TO THE MANAGEMENT AGREEMENT 
 MADE
BETWEEN: 
 (I) SENATORE SHIPPING COMPANY LIMITED 
 AND 
 (II) SCORPIO SHIP MANAGEMENT
SAM 
  

	21.	OPA 

  

	21.1	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 Organisation, resources having
salvage, fire fighting, lightering and, if applicable, dispersant capabilities, and public relations/media personnel to assist the Owners to deal with the media in the event of discharges of oil. 

  

	21.2	The Managers are expressly authorised 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 21.1. The Managers are further expressly authorised 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 US Federal or State
laws. 

  

	21.3	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. 

  

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

  

	22.	IT Services 

  

	22.1	The Managers will, subject to the remaining provisions of this Clause 22, provide the Vessel with the Management System Software. 

  

	22.2	The main features of the Management System Software at the date of this Agreement are: 

  

	 	(i)	comprehensive management software providing single point of entry to the Vessel incorporating crew management, 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 Managers and their charterers; and 

 

	 	(iii)	a computerised maintenance system including inventory control and automated purchase order handling. 

  

	22.3	The costs for the Management System Software are set out in the Fee Schedule, and are included in the Vessel’s running costs, as follows: 

 

	 	(i)	the annual maintenance fee; 

  

	 	(ii)	maintenance and upgrades; 

  

	 	(iii)	24 hour support; 

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

  

	 	(v)	operational manuals and regular updates; 

  

	 	(vi)	annual audit on board the Vessel providing a system health check; 

  

	 	(vii)	user manuals and training of the Crew in the use of the Management System Software; and 

  

	 	(viii)	e-mail on board the Vessel. 

  

	22.4	Such costs do not include the costs of appropriate hardware, licence fee and installation/set-up on board the Vessel. 

  

	22.5	Installation and set-up of the Information System 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. 

  

	22.6	The Management System Software is owned by the Managers or its subsidiaries and is protected by applicable copyright and patent laws. 

  

	22.7	The Managers do not warrant that the use or operation of the Information System Software will be uninterrupted or error free. 

  

	23.	Vetting 

 The
Managers shall undertake as soon as reasonably possible to have the Vessel either inspected or screened by the following oil majors: BP, Shell, Exxonmobil, ChevronTexaco and Total. The cost of such vetting process is already included into the
Vessel’s budget. The Managers shall use their best endeavours to accommodate the Owners requests for other/additional vetting inspections or screening processes, the cost of which shall be, however, considered out of budget. 
  

	24.	Management Fee 

  

	24.1	Without prejudice to the generality of clause 8.3 (Management Fee), it is agreed that the remuneration provided for by that clause shall be deemed to cover the
Manager’s administrative and general expenses and any other expenses which are not directly and exclusively applicable to the operation or conduct of the business of the Vessel and shall include: 

 Salaries of corporate officers, executives, department heads, administrative, clerical and office employees, port engineers, port captain,
port stewards, paymaster and other employees of the shore side establishment, payroll taxes, group insurance and pension annuity payments applicable to personnel in the above named categories, office and administrative expenses, including insurance,
rent, heat, light, power, office stationary, office services, depreciation and repair of office equipment, janitor services and expenses, accounting expenses, the Managers’ outside auditing fees, dues and membership in trade associations,
office subscriptions, contributions and donations and franchise taxes, as well as legal fees in connection with the Managers’ corporate and management functions, excluding all and any legal fees or other expenses incurred by the Managers in
connection with any claims arising out of any matter related with the Vessel. 
  

	24.2	In addition to the remuneration payable to the Managers under the provisions of the first paragraph of this section, the Owners shall reimburse the Managers for, inter
alia, the amount of such necessary travelling expenses (outside Monaco), seafarers interviewing costs, telephone calls, communication, vessel’s postage, freight and forwarding, warehousing, agency services and fees which are not included in
budget and will be treated as contingency costs. 

  

	25.	Dry docking 

 Dry
docking to be carried out with prior approval of costs by the Owners, however the repair list to be at the discretion of the Managers 

	26.	Benefit of Existing and Future Contracts 

 Where possible, the Owners shall (for the duration of this Agreement) have the advantage of any existing or future contracts of the Managers for the purchase or renewal of materials, facilities, services
or equipment, by way of the benefit of discounts (if any). 
  

	27.	Passing of Title 

  

	27.1	To the extent already paid for by the Managers using funds specifically provided by the Owners for such a purpose, title to any goods, materials or supplies purchased
by the Managers for use in the performance of this Agreement shall belong to the Owners. 

  

	27.2	Upon termination of this Agreement all such goods, materials or supplies in the hands of the Managers shall be delivered to the Vessel or if requested by the Owners the
Managers shall sell or dispose of such goods, materials or supplies at such price, terms and conditions as may be approved by the Owners and remit the proceeds thereof less any expenses incurred in selling or disposing of such goods to an account of
the Owners, to be advised separately in writing to the Managers. 

  

	28.	Termination on Bareboat Charter of Vessel 

 The Managers shall be entitled to terminate this Agreement by notice in writing in the event that the Vessel is bareboat chartered by the Owners. The date upon which the Vessel is to be treated as having
been bareboat chartered, shall be the date on which the Owners deliver the Vessel to bareboat charterer, notwithstanding the fact that the Managers may learn of the bareboat charter at a later date. 
  

	29.	Slop and any other disposal ashore 

 Disposal of slop produced for whatever reason (including but not limited to tank inspection, repairs, drydock preparation, tank cleaning) and any other disposal ashore compulsory as per local regulation
is considered out of budget and the Owners shall provide the Managers with such additional funds as may be required. 
  

	30.	ISPS Code 

  

	30.1	The Manager shall comply with the requirements of the International Code for the Security of Ships and of Port Facilities and the relevant amendments to Chapter XI of
SOLAS (ISPS Code) relating to the Vessel and “the Company” (as defined by the ISPS Code). If trading to or from the United States or passing through United States waters, in addition to ensure that the Vessel has been issued with a COFR,
the Manager shall also comply with the requirements of the US Maritime Transportation Security Act 2002 (the “MTSA”) relating to the Vessel and the “Owner” (as defined by the MTSA). 

  

	30.2	Where sub-chartering, the Owner shall ensure that the contact details of all sub-charterers are provided to the Managers and the Master. Furthermore, the Owners shall
ensure that all charter parties entered into during the period of this Agreement contain the following provision: 

 “The Charterers shall provide the Owners with their full style contact details and, where sub-chartering is permitted under the terms of the charter party, shall ensure that the contact details of all sub-charterers are likewise
provided to the Owners”. 
  

	30.3	Notwithstanding anything else contained in this Agreement all costs or expenses whatsoever arising out of or related to security regulations or measures required by the
port facility or any relevant authority in accordance with the ISPS Code and/or the MTSA including, but not limited to, security guards, launch services, vessel escorts, security fees, waiting costs and associated expenses, taxes and inspections,
shall be out of budget. All measures required by the Manager to comply with the Ship Security Plan shall be for the Manager’s account excluding costs associated with calls at non ISPS compliant port, facilities, installations, vessels or port,
facilities, installations, vessels included in any relevant authority warning list (ie USCG Port Security Advisory) as applicable in which case Owners shall provide Managers with such additional funds as may be required. 

  

	31.	Additional Costs 

 The Owners’ representative’s meals and slop chest, charterers’ meal and slop chest, representation costs, gratuity (either official or not official) provided with the aim to safeguard Vessel’s operation and given in the
sole discretion of Master will be separately debited to the Owners at cost. Any extraordinary trading cost (including but not limited to AMPD, COFR, ENOA/D, ICB, EWR coverage, Ransom and Kidnap coverage, security guard, special arrangement for
transiting pirate infested areas etc), will be debited to Owners at cost, out of budget, under contingency accounting code. 

	32.	Provision of Information 

 The Owners undertake to provide to the Managers directly or through the charterers all information and instruction necessary for the Master to efficiently perform his duties including but not limited to: charterers name and full style,
cargo information including MSDS, cargo carriage instruction relevant to that particular cargo (loading, segregating, carrying, heating, discharging, purging, ventilating, tank cleaning, inerting, stripping, CO washing instruction), port and
terminal information and requirements, navigation instruction, speed to be attained, notification requirement, agency full style, fuel MSDS, bunker delivery notes, information necessary for AMS reporting, chartering contracts the Owners will enter
into, voyage instructions including service speeds to attain. 
  

	33.	HSQE blanket approval clause 

 The Owner undertakes to provide full support for the implementation and approval of the Managers’ health, safety, quality and environmental policy including extra costs which could be from time to
time communicated to Owners. 
  

	34.	Cabotage, storage and STS 

 Cabotage, storage and frequent STS are not considered normal operations and a special evaluation of risk and extra costs will be provided on a case by case basis by the Managers. The Owners shall make available to the Managers such
additional funds as may be required in order for such additional duties to be carried out. 
  

	35.	Payments 

 All
payments to the Managers shall be made in (i) full without any deductions, withholdings and/or set-off and (ii) US Dollars, to the account of the Managers from time to time advised to the Owners by the Managers. 
  

	36.	Third Party Rights 

  

	36.1	Any person (other than parties to this Agreement) who is given any rights or benefits under Clauses 10 or 11 (a “Third Party”) shall be entitled to enforce
those rights or benefits against the parties in accordance with the Contracts (Rights of Third Parties) Act 1999. 

  

	36.2	Save as provided in Clause 36.1 above the operation of the Contracts (Rights of Third Parties) Act 1999 is hereby excluded. 

  

	36.3	The parties may amend vary or terminate this Agreement in such a way as may affect any rights or benefits of any Third Party which are directly enforceable against the
parties under the Contracts (Rights of Third Parties) Act 1999 without the consent of any such Third Party. 

  

	36.4	Any Third Party entitled pursuant to the Contracts (Rights of Third Parties) Act 1999 to enforce any rights or benefits conferred on it by this Agreement may not veto
any amendment, variation or termination of this Agreement which is proposed by the parties and which may affect the rights or benefits of any such Third Party. 

  

	37.	Bunker Quality 

  

	37.1	The Owners shall provide that bunker supplied is of a quality suitable for burning in the Vessel’s engines and auxiliaries and which conform to the
specification(s) mutually agreed under this contract. 

  

	37.2	At the time of delivery of the Vessel the Owners shall place at the disposal of the Managers, the bunker delivery note(s) and any samples relating to the fuels existing
on board. During the currency of the contract, the Owner shall ensure that bunker delivery notes are presented to the Vessel on the delivery of fuel(s) and that during bunkering representative samples of the fuel(s) supplied shall be taken at the
Vessel’s bunkering manifold and sealed in the presence of competent representatives of the fuel supplier and the Vessel as foreseen by Marpol. 

  

	37.3	Without prejudice to anything else contained in this contract, the Owners shall provide that fuel supplied is of such specifications and grades to permit the Vessel, at
all times, to comply with the maximum sulphur content requirements of any emission control zone when the Vessel is ordered to trade within that zone. 

	37.4	The Owners also warrant that any bunker suppliers, bunker craft operators and bunker surveyors used by the Owners to supply such fuels shall comply with Regulations 14
and 18 of MARPOL Annex VI as applicable, including the Guidelines in respect of sampling and the provision of bunker delivery notes. 

  

	37.5	Owners to provide as well that a bunker minimum quantity is always kept on board corresponding to 10% of any type of bunker necessary for any particular voyage or 3
days whichever is more. For vessel with a single boiler system, minimum 30 tons of distillate to be always kept on board. Commingling of bunker is not recommended and special manager permission to be obtained on a case by case basis. Managers not to
be held responsible for any consequence of commingling. 

  

	38.	War, war risk areas trading. 

  

	38.1	Managers prior assessment to be always sought before to order the vessel to trade in any war, warlike area as defined by JWC and any cost directly or indirectly
incurred as a consequence to obey to said order will be out of budget and debited to the Owners as contingency. 

  

	38.2	For the purpose of this clause, the words war risk shall include any actual, threatened or reported war; act of war; civil war; hostilities; revolution; rebellion;
civil commotion; warlike operations; laying of mines; acts of piracy; acts of terrorists; acts of hostility or malicious damage; blockades (whether imposed against all vessels or imposed selectively against vessels of certain flags or ownership, or
against certain cargoes or crews or otherwise howsoever); by any person, body, terrorist or political group, or the Government of any state whatsoever, which, in the reasonable judgment of the Managers, may be dangerous or are likely to be or to
become dangerous to the Vessel, her cargo, crew or other persons on board the Vessel. 

  

	39.	Ice trading. 

 Manager prior assessment to be always sought before to order the vessel to trade in any ice bound area as defined by IWL or by prevailing local condition and any cost directly or indirectly incurred as a consequence to obey to said order
will be out of budget and debited to owner as contingency. 
  

	40.	Sub-let. 

 Any
extra cost and expenses necessary for owner to perform any sub letting charterer contract are excluded from budget. Take over cost are excluded from budget and vessel is supposed to be fully stocked at delivery 
  

	41.	Entire Agreement. 

  

	41.1	This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter of this Agreement; and (in relation to such
subject matter) supersedes all prior discussions, understandings and agreements between the parties and all prior representations and expressions of opinion by the parties. 

  

	41.2	Each of the parties acknowledges that it is not relying on any statements, warranties, representations or understandings (whether negligently or innocently made)
given or made by or on behalf of the other in relation to the subject matter hereof and that it shall have no rights or remedies with respect to such subject matter otherwise than under this Agreement. The only remedy available shall be for breach
of contract under the terms of this Agreement. Nothing in this Clause shall, however, operate to limit or exclude any liability or fraud. 

 Dated this 1st day of DECEMBER 2009

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