Document:

Commercial Management Agreement between Senatore Shipping Company Ltd. and SCM

 Exhibit 10.6 

 

 

  

											
	
 

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

	 		 		 		 	 STANDARD SHIP MANAGEMENT AGREEMENT
  

CODE NAME: “SHIPMAN 98”
  
 Part I
  

	 	2.	 	 Owners (name, place of registered office and law of registry) (Cl. 1)
  
	 	 3.
  
  
	 	 Managers (name, place of registered office and law of registry) (Cl.
1)
  

	 		 	 Name
 Senatore Shipping Company Limited
	 		 	 Name
 Scorpio Commercial Management sam

	 		 	 Place of registered office
 Ajeltake Road, Ajeltake Island, Majuro, MH96960 Marshall Islands
	 		 	 Place of registered office
 9 blvd Charles III, MC98000 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)

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

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

	 	9.	 	 Accounting Services (state “yes” or “no” as agreed) (Cl.
3.5)
 YES
	 	10.	 	 Sale or purchase of the Vessel (state “yes ” or “no” as
agreed) (Cl. 3.6)
 NO

	 	11.	 	 Provisions (state “yes” or “no” as agreed) (Cl. 3.7)
 NO
	 	12.	 	 Bunkering (state “yes” or “no” as agreed) (Cl.
3.8)
 YES

	 	13.	 	 Chartering Services Period (only to be filled in if “yes” stated in Box 7) (Cl.
3.3(i))
 YES, up to twelve (12) months
	 	14.	 	 Owners’ Insurance (state alternative (i), (ii) or (iii) of (Cl.
6.3)
 Alternative 6.3(ii) to apply

	 	15.	 	 Annual Management Fee (state annual amount) (Cl. 8.1)
 see clause 8.1
	 	16.	 	 Severance Costs (state maximum amount) (Cl. 8.4(ii))

 N/A

	 	17.	 	 Day and year of termination of Agreement (Cl. 17)
 See Cl. 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)
 Noemi Shipping Company Limited
 c/o Scorpio Ship Management sam
 9 blvd
Charles III
 MC98000 Monaco
 Phone +377 97985700
 Fax +977 92057045
 e-mail: management@scorpio.mc
	 	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 97985850

 fax +377 97985858
 e-mail:
management@scorpiogroup.net

 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 any 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 Cost” 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 in accordance with the provisions and the recitals of this Agreement. 
 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 Manager’s 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 stores, spares and lubricating oil; 

  

	 	(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 ISM Code (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 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, content thereto in writing shall first be obtained from
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, including but not limited to, authorizing the Master to release cargo; 

  

	 	(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 will provide for regular accounting services, supply
regular monthly 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, in accordance with the Owner’s instructions, supervise the sale or purchase of the Vessel, including the
performance of any sale or purchase agreement, but not negotiation of the same. 
 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 responsibility 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); and 

  

	 	(iii)	war risks (including protection and indemnity and crew risks) 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, if any, 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, if any, 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 
 8.1 When the Vessel is trading in the Scorpio Panamax Tanker Pool, the Managers shall be remunerated in accordance with the provisions of the governing pool agreement. Otherwise, when the Vessel is
not trading in the Pool, The Owners shall pay to the Managers for their services as Managers under this Agreement 
  

	 	(i)	an annual flat management fee of US$250 per day pro rata as stated in Box 15 which shall
be payable by equal monthly instalments in advance,; and 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. 
 (ii) for providing chartering services in accordance clause 3.3(i) a commission of 1.25% on
all monies earned by the Owners on each Vessel fixture. 
 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 Severance Costs 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. 
  

	9.	Budget 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 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 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.	Manager’s 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 five
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 cost, 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 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 
  
 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 
  

 
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 and indivitually are reasonably estimated to be in excess of US$15,000. 
 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 and subject to the provisions of clause 13.1 hereto. 
 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. 
 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 the 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
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. 
  
 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 
  

 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 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 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 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. 
 Any 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.Commercial Management Agreement between Venice Shipping Company Limited and SCM

 Exhibit 10.7 

 

 

  

											
	
 

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

	 		 		 		 	 STANDARD SHIP MANAGEMENT AGREEMENT
  

CODE NAME: “SHIPMAN 98”
  
 Part I
  

	 	2.	 	 Owners (name, place of registered office and law of registry) (Cl.1)
  
  
	 	 3.
  
  
	 	 Managers (name, place of registered office and law of registry)
(Cl.1)
  

	 		 	 Name
  
 Venice Shipping Company Limited
	 		 	 Name
  
 Scorpio Commercial Management sam

	 		 	 Place of registered office
  
 Ajeltake Road, Ajeltake Island, Majuro, MH96960 Marshall Islands
	 		 	 Place of registered office
  
 9 blvd Charles III, MC98000 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)

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

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

	 	9.	 	 Accounting Services (state “yes” or “no” as agreed)
(Cl.3.5)
  
 YES
	 	10.	 	 Sale or purchase of the Vessel (state “yes” or “no” as
agreed) (Cl.3.6)
  
 NO

	 	11.	 	 Provisions (state “yes” or “no” as agreed) (Cl.3.7)
  
 NO
	 	12.	 	 Bunkering (state “yes” or “no” as agreed) (Cl.3.8)

  
 YES

	 	13.	 	 Chartering Services Period (only to be filled in if “yes” stated in Box 7)
(Cl.3.3(i))
  
 YES, up to twelve (12) months
	 	14.	 	 Owner’s Insurance (state alternative (i), (ii) or
(iii) of (Cl.6.3)
  
 Alternative 6.3(ii) to
apply

	 	15.	 	 Annual Management Fee (state annual amount) (Cl.8.1)
  
 see clause 8.1
	 	16.	 	 Severance Costs (state maximum amount) (Cl.8.4(ii))

  
 N/A

	 	17.	 	 Day and year of termination of Agreement (Cl.17)
  
 See Cl. 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)
  
 Noemi Shipping
Company Limited
 c/o Scorpio Ship Management sam
 9 blvd Charles III
 MC98000 Monaco
 Phone +377 97985700
 Fax +977 92057045

 e-mail: management@scorpio.mc
	 	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 97985850
 fax +377 97985858
 e-mail: management@scorpiogroup.net

 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 any 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 Sale 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 in accordance with the provisions and the recitals of this Agreement. 
 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 stores, spares and lubricating oil; 

  

	 	(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 (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, including but not limited to, authorizing the Master to release cargo; 

  

	 	(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 will provide for regular accounting services, supply
regular monthly 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, in accordance with the Owners’ instructions, supervise the sale or purchase of the Vessel, including the
performance of any sale or purchase agreement, but not negotiation of the same. 
 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); and 

  

	 	(iii)	war risks (including protection and indemnity and crew risks) 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, and 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 reasonable 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, if any, 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, if any, 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 
 8.1 When the Vessel is trading in the Scorpio Panamax Tanker Pool, the Managers shall be remunerated in accordance with the provisions
of the governing pool agreement. Otherwise, when the Vessel is not trading in the Pool, The Owners shall pay to the Managers for their services as Managers under this Agreement 
 (i) an annual flat management fee of US$250 per day pro rata as stated in Box 15 which shall
be payable by equal monthly instalments in advance,; and 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 
  

 (ii) for providing chartering services in accordance clause 3.3(i) a commission of 1.25%
on all monies earned by the Owners on each Vessel fixture. 
 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 Severance Costs 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. 
 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 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 their 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 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 nor 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 five 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 cost, 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 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 the Clause 11 the Managers are or shall be deemed to be 
  

 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 
  

 
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 and indivitually are reasonably estimated to be in excess of US$15,000. 
 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 and subject to the provisions of clause 13.1 hereto. 
 13.3 The Managers shall also have power to obtain legal or technical or other 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. 
 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. 
 There after it shall continue until terminated by Upon the
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 Owner’s 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
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. 
  
 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 
  

 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 of 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 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 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 are alternatives; indicate alternative agreed in Box 18. 
 20. Notices

 20.1 Any notice to be given but 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. 
 Any Additional Clauses attached hereto together with any subsequent
addenda, schedules, appendicies 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.

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