Document:

d1072748_ex10-2.htm

    EXHIBIT
10.2

    FORM OF
COMMERCIAL MANAGEMENT AGREEMENT

    between a vessel-owning subsidiary of the Copany
and SCM

     

    
      
        	 	 	 	 ORIGINAL
	
                1.

              	
                Date
      of Agreement

                 

                
                  
      

              	 
      	
                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

                 

              	 
      	
                    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).

                
                  
        c/o
      Scorpio Ship Management sam

                9
      blvd. Charles III

                MC98000
      Monaco

                Phone: 
      +377 97985700

                Fax:     
       +977 92057045

                email: 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

                email: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 contented
herein.  In the event of a conflict of conditions, the provisions of
PART I and
Annexes "A",
"B", "C" and "D" shall prevail
over those of PART
II to the extent of such conflict but no further.

       

      
        
          	 
      	
                   

                  Signature(s)
      (Owners)

                   

                   

                   

                   

                   

                	
                   

                  Signature(s)
      (Managers)

                   

                   

                

        

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

         

        
          
            
               

            

            
               

              
                

              

            

            
               

            

          
PART II

         

        "SHIPMAN
98" STANDARD SHIP MANAGEMENT AGREEMENT

        
          	
                  1.    
      Definitions

                	
                  1

                	
                  insurance,
      discipline and other requirements;

                	
                  63

                
	
                  In
      this Shipman 98 form (together with any Additional Clauses
    of

                	
                  2

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

                	
                  64

                
	
                  even
      date herewith and any Schedules thereto (the

                	 
      	
                  examination
      with a qualified doctor certifying that they are
fit

                	
                  65

                
	
                  "Agreement"))
      save where the context otherwise requires,

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

                	
                  66

                
	
                  the
      following words and expressions shall have the meanings

                	
                  3

                	
                  of
      valid medical certificates issued in accordance
with

                	
                  67

                
	
                  hereby
      assigned to them.

                	
                  4

                	
                  appropriate
      flag State requirements, in the absence of

                	
                  68

                
	 
      	 
      	
                  applicable
      flag State requirements the medical certificate
    shall

                	
                  69

                
	
                  "Owners"
      means the party identified in Box
      2.

                	
                  5

                	
                  be
      dated not more than three months prior to the
      respective

                	
                  70

                
	
                  "Managers"
      means the party identified in Box
      3.

                	
                  6

                	
                  Crew
      members leaving their country of domicile and

                	
                  71

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

                	
                  7

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

                	
                  72

                
	
                  out
      in Annex
      "A" attached hereto.

                	
                  8

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

                	
                  73

                
	
                  “Crew”
      means the Master, officers and ratings of the numbers,

                	
                  9

                	
                  language
      of a sufficient standard to enable them to perform

                	
                  74

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

                	
                  10

                	
                  their
      duties safely;

                	
                  75

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

                	
                  11

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

                	
                  76

                
	
                  which
      are not particularly referable to any Individual vessel
for

                	
                  12

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

                	
                  77

                
	
                  the
      time being managed by the Managers and which are incurred

                	
                  13

                	
                  (vii)
      conducting union negotiations;

                	
                  78

                
	
                  by
      the Managers for the purpose of providing an efficient and

                	
                  14

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

                	
                  79

                
	
                  economic
      management service and, without prejudice to the

                	
                  15

                	
                  otherwise
      agreed.

                	
                  80

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

                	
                  16

                	 
      	 
      
	
                  pay,
      training schemes for officers and ratings, cadet training

                	
                  17

                	
                  3.2
      Technical Management

                	
                  81

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

                	
                  18

                	
                  (only
      applicable if agreed according to Box
      6)

                	
                  82

                
	
                  "Severance
      Costs" means the costs which the employers
      are

                	
                  19

                	
                  The
      Managers shall provide technical management which

                	
                  83

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

                	
                  20

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

                	
                  84

                
	
                  the
      early termination of any employment contract for service
on

                	
                  21

                	
                  (i)
      provision of competent personnel to supervise the

                	
                  85

                
	
                  the
      Vessel.

                	
                  22

                	
                  maintenance
      and general efficiency of the Vessel;

                	
                  86

                
	
                  "Crew
      insurances" means insurances against crew risks
      which

                	
                  23

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

                	
                  87

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

                	
                  24

                	
                  alterations
      and the upkeep of the Vessel to the standards

                	
                  88

                
	
                  injury,
      shipwreck unemployment indemnity and loss of personal

                	
                  25

                	
                  required
      by the Owners provided that the Managers shall

                	
                  89

                
	
                  effects.

                	
                  26

                	
                  be
      entitled to incur the necessary expenditure to
    ensure

                	
                  90

                
	
                  "Management
      Services" means the services specified in sub-

                	
                  27

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

                	
                  91

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

                	
                  28

                	
                  Vessel
      and of the places where she trades, and all

                	
                  92

                
	
                  "ISM
      Code" means the International Management Code for
    the

                	
                  29

                	
                  requirements
      and recommendations of the classification

                	
                  93

                
	
                  Safe
      Operation of Ships and for Pollution Prevention as adopted

                	
                  30

                	
                  Society;

                	
                  94

                
	
                  by
      the International Maritime Organization (IMO) by
resolution

                	
                  31

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

                	
                  95

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

                	
                  32

                	
                  lubricating
      oil;

                	
                  96

                
	
                  "STCW
      95" moans the International Convention on Standards

                	
                  33

                	
                  (iv)
      appointment of surveyors and technical consultants as
      the

                	
                  97

                
	
                  of
      Training, Certification and Watchkeeping for Seafarers,
    1978,

                	
                  34

                	
                  Managers
      may consider from time to time to be necessary;

                	
                  98

                
	
                  as
      amended in 1995 or any subsequent amendment thereto.

                	
                  35

                	
                  (v)
      development, implementation and maintenance of a
    Safely

                	
                  99

                
	 
      	 
      	
                  Management
      System (SMS) in accordance with the ISM

                	
                  100

                
	
                  2.   
      Appointment of Managers

                	
                  36

                	
                  Code
      (see sub-clauses
      4.2 and
      5.3)

                	
                  101

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

                	
                  37

                	 
      	 
      
	
                  unless
      and until terminated as provided herein, the Owners

                	
                  38

                	
                  3.3
      Commercial Management

                	
                  102

                
	
                  hereby
      appoint the Managers and the Managers hereby agree

                	
                  39

                	
                  (only applicable if agreed according to Box
      7)

                	
                  103

                
	
                  to
      act as the Managers of the Vessel in accordance with the

                	
                  40

                	
                  The
      Managers shall provide the commercial operation of the

                	
                  104

                
	
                  provisions
      and the recitals of this Agreement.

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

                	
                  105

                
	 
      	 
      	
                  limited
      to, the following functions:

                	
                  106

                
	
                  3.   
      Basis of Agreement

                	
                  41

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

                	
                  107

                
	
                  Subject
      to the terms and conditions herein provided, during the

                	
                  42

                	
                  instructions
      which include, but are not limited to, seeking

                	
                  108

                
	
                  period
      of this Agreement, the Managers shall carry out

                	
                  43

                	
                  and
      negotiating employment for the Vessel and the conclusion

                	
                  109

                
	
                  Management
      Services in respect of the Vessel as agents for

                	
                  44

                	
                  (including
      the execution thereof) of charter parties or other

                	
                  110

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

                	
                  45

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

                	
                  111

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

                	
                  46

                	
                  contract
      exceeds the period stated in Box
      13, consent thereto

                	
                  112

                
	
                  discretion
      consider to be necessary to enable them to perform

                	
                  47

                	
                  in
      writing shall first be obtained from the Owners.

                	
                  113

                
	
                  this
      Agreement In accordance with sound ship management

                	
                  48

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

                	
                  114

                
	
                  practice.

                	
                  49

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

                	
                  115

                
	 
      	 
      	
                  whatsoever
      nature to which Owners may be entitled arising

                	
                  116

                
	        
      3.1
      Crew Management	   
      50	
                  out
      of the employment of or otherwise in connection with the

                	 117
	        (only
      applicable if agreed according to Box
      5)	   
      51	
                  Vessel.

                	 118
	
                  The
      Managers shall provide suitably qualified Crew for the
      Vessel

                	
                  52

                	
                  (iii)
      providing voyage estimates and accounts and calculating of

                	
                  119

                
	
                  as
      required by the Owners in accordance with the STCW
    95

                	
                  53

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

                	
                  120

                
	
                  requirements,
      provision of which includes but is not limited to

                	
                  54

                	
                  or
      due to the charterers of the Vessel;

                	
                  121

                
	
                  the
      following functions.

                	
                  55

                	
                  (iv)
      issuing of voyage instructions, Including but not limited
    to,

                	
                  122

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

                	
                  56

                	
                  authorizing
      the Master to release cargo;

                	 
      
	
                  arrangements,
      pension administration, and insurances for

                	
                  57

                	
                  (v)
      appointing agents;

                	
                  123

                
	
                  the
      Crew other than those mentioned in Clause
      6;

                	
                  58

                	
                  (vi)
      appointing stevedores;

                	
                  124

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

                	
                  59

                	
                  (vii)
      arranging surveys associated with the commercial operation

                	
                  125

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

                	
                  60

                	
                  of
      the Vessel.

                	
                  126

                
	
                  rank,
      qualification and certification of the Crew and

                	
                  61

                	 
      	 
      
	
                  employment
      regulations including Crew's tax, social

                	
                  62

                	
                  3.4
      Insurance Arrangements'

                	
                  127

                
	 
      	 
      	
                  (only
      applicable if agreed according to Box
      8)

                	
                  128

                

        

         

        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
expenses 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

                	
                  129

                	
                  responsibilities
      imposed by the ISM Code when applicable

                	
                  192

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

                	
                  130

                	 
      	 
      
	
                  have
      instructed or agreed, in particular regarding
      conditions,

                	
                  131

                	 
      	 
      
	
                  insured
      values, deductibles and franchises.

                	
                  132

                	
                  6.    Insurance
      Policies

                	
                  193

                
	 
      	 
      	
                  The Owners shall procure, whether
      by instructing the Managers

                	
                  194

                
	
                  3.5
      Accounting Services

                	
                  133

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

                	
                  195

                
	
                  (only
      applicable if agreed according to Box
      9)

                	
                  134

                	
                  this
      Agreement.

                	
                  196

                
	
                  The
      Managers shall:

                	
                  135

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

                	
                  197

                
	
                  (i) establish an accounting system which meets
      the

                	
                  136

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

                	
                  198

                
	
                  requirements
      of the Owners and will provide for
      regular

                	
                  137

                	
                  as
      the case may be for:

                	
                  199

                
	
                  accounting

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

                	
                  200

                
	
                  services,
      supply regular
      monthly reports and records,

                	
                  138

                	
                  negligence)
      and excess liabilities;

                	
                  201

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

                	
                  139

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

                	
                  202

                
	
                  as
      well as data necessary or proper for the settlement of

                	
                  140

                	
                  Crew
      Insurances); and

                	
                  203

                
	
                  accounts
      between the parties.

                	
                  141

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

                	
                  204

                
	 
      	 
      	
                  in
      accordance with the best practice of prudent owners of

                	
                  205

                
	
                  3.6
      Sale or Purchase of the Vessel

                	
                  142

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

                	
                  206

                
	
                  (only
      applicable if agreed according to Box
      10)

                	
                  143

                	
                  companies,
      underwriters or associations ("the Owners'

                	
                  207

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

                	
                  144

                	
                  Insurances");

                	
                  208

                
	
                  supervise
      the sale or purchase of the Vessel, including the

                	
                  145

                	
                  6.2
      all premiums and calls on the owners' insurances are
      paid

                	
                  209

                
	
                  performance
      of any sale or purchase agreement, but not

                	
                  146

                	
                  promptly
      by their due date;

                	
                  210

                
	
                  negation
      of the same.

                	
                  147

                	
                  6.3
      the Owners' Insurances name the Managers and,
      subject

                	
                  211

                
	 
      	 
      	
                  to
      underwriters' agreement, any third party designated by the

                	
                  212

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

                	
                  148

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

                	
                  213

                
	
                  The
      Managers shall arrange for the supply of
provisions.

                	
                  149

                	
                  obtaining
      cover in respect of each of the insurance specified in

                	
                  214

                
	 
      	 
      	
                  sub-clause
      6.1;

                	
                  215

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

                	
                  150

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

                	
                  216

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

                	
                  151

                	
                  are
      liable in respect of premiums or calls arising in
      connection

                	
                  217

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

                	
                  152

                	
                  with
      the Owners' Insurances; or

                	
                  218

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

                	
                  219

                
	
                  4. Managers'
      Obligations

                	
                  153

                	
                  Managers
      nor any such third party shall be under any

                	
                  220

                
	
                  4.1
      The Managers undertake to use their best endeavours
      to

                	
                  154

                	
                  liability
      in respect of premiums or calls arising in connection

                	
                  221

                
	
                  provide
      the agreed Management Services as agents for and on

                	
                  155

                	
                  with
      the Owners' insurances; or

                	
                  222

                
	
                  behalf
      of the Owners in accordance with sound ship management

                	
                  156

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

                	
                  223

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

                	
                  157

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

                	
                  224

                
	
                  all
      matters relating to the provision of services hereunder.

                	
                  158

                	
                  blank
      then (i) applies.

                	
                  225

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

                	
                  159

                	
                  6.4
      written evidence is provided, to the reasonable
      satisfaction

                	
                  226

                
	
                  management
      responsibilities under this Agreement shall be entitled

                	
                  160

                	
                  of
      the Managers, of their compliance with their obligations
    under

                	
                  227

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

                	
                  161

                	
                  Clause
      6 within a reasonable time of the commencement
      of

                	
                  228

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

                	
                  162

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

                	
                  229

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

                	
                  163

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

                	
                  230

                
	
                  the
      Managers shall be entitled to allocate available supplies,

                	
                  164

                	 
      	 
      
	
                  manpower
      and services in such manner as in the prevailing

                	
                  165

                	
                  7.    Income
      Collected and Expenses Paid on Behalf
      of
       Owners

                	
                  231

                
	
                  circumstances
      the Managers in their absolute discretion consider

                	
                  166

                	
                  7.1
      All moneys, if any, collected by the Managers under the terms
      of

                	
                  232

                
	
                  to
      be fair and reasonable.

                	
                  167

                	
                  this
      Agreement (other than moneys payable by the Owners to

                	
                  233

                
	
                  4.2
      Where the Managers are providing Technical
      Management

                	
                  168

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

                	
                  234

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

                	
                  169

                	
                  credit
      of the Owners in a separate bank account.

                	
                  235

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

                	
                  170

                	
                  7.2
      All expenses, if any, incurred by the Managers under the
      terms

                	
                  236

                
	
                  rhey
      shall in particular be deemed to be the "Company" as
      defined

                	
                  171

                	
                  of
      this Agreement on behalf of the Owners (including expenses

                	
                  237

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

                	
                  172

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

                	
                  238

                
	
                  the
      Vessel and taking over the duties and responsibilities
      imposed

                	
                  173

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

                	
                  239

                
	
                  by
      the ISM Code when applicable.

                	
                  174

                	
                  event
      remain payable by the Owners to the Managers on

                	
                  240

                
	 
      	 
      	
                  demand.

                	
                  241

                
	
                  5. Owners'
      Obligations

                	
                  175

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

                	
                  176

                	
                  8.    Management
      Fee

                	
                  242

                
	
                  in
      accordance with the terms of this Agreement.

                	
                  177

                	
                  8.1
      When the Vessel is trading in the Scorpio Panamax
      Tanker

                	
                  243

                
	
                  5.2
      Where the Managers are providing Technical
      Management

                	
                  178

                	
                  Pool,
      the Managers shall be remunerated in accordance with the

                	 
      
	
                  in
      accordance with sub clause 3.2,
      the Owners shall;

                	
                  179

                	
                  provisions
      of the governing pool agreement.  Otherwise when

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

                	
                  180

                	
                  the
      Vessel is not trading in the Pool, The Owners shall pay to
    the

                	 
      
	
                  their
      behalf comply with the requirements of STCW 95;

                	
                  181

                	
                  Managers
      for their services.

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

                	
                  182

                	
                  as
      Managers under this Agreement.

                	
                  244

                
	
                  of
      the Managers in connection with the operation of
the

                	
                  183

                	
                  (i)
      an
      annual flat management

                	 
      
	
                  Managers'
      safety management system.

                	
                  184

                	
                  fee of US$250 per day pro rata as
      stated in Box 15 which shall be

                	
                  245

                
	
                  5.3  Where
      the Managers are not providing Technical
      Management

                	
                  185

                	
                  payable
      by equal

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

                	
                  186

                	
                  monthly instalments
      in advance; and the
      first installment being

                	
                  246

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

                	
                  187

                	
                  payable
      on the commencement of this Agreement (see Clause

                	
                  247

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

                	
                  188

                	
                  2
      and Box 4) and subsequent installments being payable
      every

                	
                  248

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

                	
                  189

                	
                  month.

                	
                  249

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

                	
                  190

                	
                  8.2
      The management fee shall be subject to an annual
    review

                	
                  250

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

                	
                  191

                	
                  on
      the anniversary date of the Agreement and the
    proposed

                	
                  251

                

        

         

        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 expenses 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

                	
                  252

                	
                  Management
      Services.

                	
                  317

                
	
                  9.1

                	 
      	 
      	 
      
	
                  (ii)
      for providing chartering services in accordance clause 3.3(i)
      a

                	 
      	
                  10.  
      Managers' Right To Sub-Contract

                	
                  318

                
	
                  commission
      of 1.25% on all monies earned by the Owners on each

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

                	
                  319

                
	
                  Vessel
      fixture.

                	
                  253

                	
                  their
      obligations hereunder, including those mentioned in sub-

                	
                  320

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

                	
                  321

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

                	
                  254

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

                	
                  322

                
	
                  their
      own office accommodation. Office, staff, facilities and

                	
                  255

                	
                  contract
      the Managers shall remain fully liable for the due

                	
                  323

                
	
                  stationery,
      Without limiting the generality of Clause
      7 the Owners

                	
                  256

                	
                  performance
      of their obligations under this Agreement.

                	
                  324

                
	
                  shall
      reimburse the Managers for postage and communication

                	
                  257

                	 
      	 
      
	
                  expenses,
      travelling expenses, and other out of pocket

                	
                  258

                	
                  11.  
      Responsibilites

                	
                  325

                
	
                  expenses
      properly incurred by the Managers in pursuance of

                	
                  259

                	
                  11.1 Force
      Majeure – Neither the Owners nor the
Managers

                	
                  326

                
	
                  the
      Management Services.

                	
                  260

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

                	
                  327

                
	
                  8.4 In
      the event of the appointment of the Managers being

                	
                  261

                	
                  obligations
      hereunder by reason of any cause whatsoever of

                	
                  328

                
	
                  terminated
      by the Owners or the Managers in accordance with

                	
                  262

                	
                  any
      nature or kind beyond their reasonable control.

                	
                  329

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

                	
                  263

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

                	
                  330

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

                	
                  264

                	
                  11.1,
      the Managers shall be under no liability whatsoever to the

                	
                  331

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

                	
                  265

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

                	
                  332

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

                	
                  266

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

                	
                  333

                
	
                  be
      payable for a further period of three calendar months as

                	
                  267

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

                	
                  334

                
	
                  from the termination date.  In
      addition,  provided that the

                	
                  268

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

                	
                  335

                
	
                  Managers
      provide Crew for the Vessel in accordance with sub-

                	
                  269

                	
                  performance
      of the Management Services UNLESS
      same Is

                	
                  336

                
	
                  Clause
      3.1;

                	
                  270

                	
                  proved
      to have resulted solely from the negligence, gross

                	
                  337

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

                	
                  271

                	
                  negligence
      or wilful default of the Managers or their employees,

                	
                  338

                
	
                  the
      said further period of three calendar months and

                	
                  272

                	
                  or
      agents or sub-contractors employed by them In connection

                	
                  339

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

                	
                  273

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

                	
                  340

                
	
                  Severance
      Costs which may materialize, not exceeding

                	
                  274

                	
                  or
      expense has resulted from the Managers' personal act or

                	
                  341

                
	
                  The
      amount stated in Box
      16.

                	
                  275

                	
                  omission
      committed with the intent to cause same or recklessly

                	
                  342

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

                	
                  276

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

                	
                  343

                
	
                  Agreement
      remains in force and such lay up lasts for more

                	
                  277

                	
                  would
      probably result) the Managers' liability for each Incident

                	
                  344

                
	
                  than
      three months, an appropriate reduction of the
      management

                	
                  278

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

                	
                  345

                
	
                  fee
      for the period exceeding three months until one
    month

                	
                  279

                	
                  exceed
      a total of ten-five times the annual management fee
payable

                	
                  346

                
	
                  before
      the Vessel is again put into service shall be
    mutually

                	
                  280

                	
                  hereunder.

                	
                  347

                
	
                  agreed
      between the parties.

                	
                  281

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

                	
                  348

                
	
                  8.6
      Unless otherwise agreed in writing all discounts
      and

                	
                  282

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

                	
                  349

                
	
                  commissions
      obtained by the Managers in the course of the

                	
                  283

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

                	
                  350

                
	
                  management
      of the Vessel shall be credited to the Owners.

                	
                  284

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

                	
                  351

                
	 
      	 
      	
                  to
      have resulted from a failure by the Managers to discharge

                	
                  352

                
	
                  9.
      Budgets and Management of Funds

                	
                  285

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

                	
                  353

                
	
                  9.1
      The Managers shall present to the Owners annually
      a

                	
                  286

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

                	
                  354

                
	
                  budget
      for the following twelve months in such form as the

                	
                  287

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

                	
                  355

                
	
                  Owners
      require.  The budget for the first year hereof is set
      out

                	
                  288

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

                	
                  356

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

                	
                  289

                	
                  clause
      11.2,
      the Owners hereby undertake to keep the Managers

                	
                  357

                
	
                  prepared
      by the Managers and submitted to the Owners not

                	
                  290

                	
                  and
      their employees, agents and sub-contractors indemnified

                	
                  358

                
	
                  less
      than there months before the anniversary date of
the

                	
                  291

                	
                  and
      to hold them harmless against all actions, proceedings,

                	
                  359

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

                	
                  292

                	
                  claims,
      demands or liabilities whatsoever or howsoever arising

                	
                  360

                
	
                  9.2
      The Owners shall indicate to the Managers their
      acceptance

                	
                  293

                	
                  which
      may be brought against them or incurred or suffered by

                	
                  361

                
	
                  and
      approval of the annual budget within one month of

                	
                  294

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

                	
                  362

                
	
                  presentation
      and in the absence of any such indication the

                	
                  295

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

                	
                  363

                
	
                  Managers
      shall be entitle to assume that the Owners have

                	
                  296

                	
                  damages
      and expenses (including legal costs and expenses on

                	
                  364

                
	
                  accepted
      the proposed budget.

                	
                  297

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

                	
                  365

                
	
                  9.3
      Following the agreement of the budget, the Managers
      shall

                	
                  298

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

                	
                  366

                
	
                  prepare
      and present to the Onwers their estimate of the
    working

                	
                  299

                	
                  this
      Agreement.

                	
                  367

                
	
                  capital
      requirement of the Vessel and the Managers shall
    each

                	
                  300

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

                	
                  368

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

                	
                  301

                	
                  employee
      or agent of the Managers (including every sub-

                	
                  369

                
	
                  each
      month request the Owners in writing for the funds
      required

                	
                  302

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

                	
                  370

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

                	
                  303

                	
                  any
      circumstances whatsoever be under any liability whatsoever

                	
                  371

                
	
                  of
      any occasional or extraordinary item of expenditure, such
      as

                	
                  304

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

                	
                  372

                
	
                  emergency
      repair costs, additional insurance premiums,
bunkers

                	
                  305

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

                	
                  373

                
	
                  or
      provisions.  Such funds shall be received by the
      Managers

                	
                  306

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

                	
                  374

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

                	
                  307

                	
                  with
      his employment and, without prejudice to the generality of

                	
                  375

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

                	
                   308

                	
                  the
      foregoing provisions in this Clause
      11, every exemption,

                	
                  376

                
	
                  Owners
      in a separate bank account..

                	
                   309

                	
                  limitation,
      condition and liberty herein contained and every right,

                	
                  377

                
	
                  9.4
      The Managers shall produce a comparison
    between

                	
                   
      310

                	
                  exemption
      from liability, defense and Immunity of whatsoever

                	
                  378

                
	
                  budgeted
      and actual income and expenditure of the Vessel in

                	
                   
      311

                	
                  nature
      applicable to the Managers or to which the Managers are

                	
                  379

                
	
                  such
      form as required by the Owners monthly or at such
    other

                	
                   
      312

                	
                  entitled
      hereunder shall also be available and shall extend to

                	
                  380

                
	
                  intervals
      as mutually agreed.

                	
                   
      313

                	
                  protect
      every such employee or agent of the Managers acting

                	
                  381

                
	
                  9.5
      Notwithstanding anything contained herein to the
      contrary,

                	
                   
      314

                	
                  as
      aforesaid and for the purpose of all the foregoing
    provisions

                	
                  382

                
	
                   the
      Managers shall in no circumstances be required to use or

                	
                   
      315

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

                	
                  383

                
	
                  commit
      their own funds to finance the provision of the

                	
                   
      316

                	 
      	 
      

        

         

        This
document is a computer generated SHIPMAN 98 form printed by authority cf 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
expenses 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

                	
                  384

                	
                  years
      from the

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

                	
                  385

                	
                  date
      upon which such notice was given, Clause 18.6 will apply.

                	
                  439

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

                	
                  386

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

                	
                  387

                	
                  18.   Termination

                	
                  440

                
	
                  Agreement.

                	
                  388

                	
                  18.1
      Owners' default

                	
                  441

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

                	
                  442

                
	
                  12.Documentation

                	
                  389

                	
                  with
      Immediate effect by notice in writing if any moneys

                	
                  443

                
	
                  Where
      the Managers are providing Technical Management in

                	
                  390

                	
                  payable
      by the Owners under this Agreement and/or the

                	
                  444

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

                	
                  391

                	
                  owners
      of any associated vessel, details of which are listed

                	
                  445

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

                	
                  392

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

                	
                  446

                
	
                  upon
      Owners' request, all documentation and records
    related

                	
                  393

                	
                  nominated
      account within ten running days of receipt by

                	
                  447

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

                	
                  394

                	
                  the
      Owners of the Managers written request or if the Vessel

                	
                  448

                
	
                  which
      the Owners need in order to demonstrate compliance

                	
                  395

                	
                  is
      repossessed by the Mortgagees.

                	
                  449

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

                	
                  396

                	
                  (ii)  If
      the Owners:

                	
                  450

                
	
                  a
      third party.

                	
                  397

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

                	
                  451

                
	 
      	 
      	
                  and 5.3
      of this Agreement for any reason within their

                	
                  452

                
	
                  13. General
      Administration

                	
                  398

                	
                  control, of

                	
                  453

                
	
                  13.1 The
      Managers shall handle and settle all claims arising

                	
                  399

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

                	
                  454

                
	
                  out
      of the Management Services hereunder and keep the Owners

                	
                  400

                	
                  the Vessel In the carriage of contraband,
      blockade

                	
                  455

                
	
                  informed
      regarding any incident of which the Managers become

                	
                  401

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

                	
                  456

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

                	
                  402

                	
                  in the reasonable opinion of the Managers is
      unduly

                	
                  457

                
	
                  third
      parties and Indlvitually are reasonably estimated to be In

                	
                  403

                	
                  hazardous or improper,

                	
                  458

                
	
                  excess
      of US$15,000.

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

                	
                  459

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

                	
                  404

                	
                  requiring
      them to remedy It as soon as practically possible.

                	
                  460

                
	
                  or
      defend-actions, suits or proceedings in connection with
      matters

                	
                  405

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

                	
                  461

                
	
                  entrusted
      to the Managers according to this Agreement and subject

                	
                  406

                	
                  reasonable
      time to the satisfaction of the Managers, the

                	
                  462

                
	
                  to
      the provisions of clause 13.1 hereto.

                	 
      	
                  Managers
      shall be entitled to terminate the Agreement

                	
                  463

                
	
                  13.3 The
      Managers shall also have power to obtain legal or

                	
                  407

                	
                  with
      Immediate effect by notice In writing,

                	
                  464

                
	
                  technical
      or other outside expert advice in relation to the handling

                	
                  408

                	
                  18.2  Managers'
      Default

                	
                  465

                
	
                  and
      settlement of claims and disputes or all other matters

                	
                  409

                	
                  (i)  If the Managers fail to meet their
      obligations under Clauses
      3

                	
                  466

                
	
                  affecting
      the interests of the Owners In respect of the Vessel, save

                	
                  410

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

                	
                  467

                
	
                  Managers
      should obtain Owners approval prior to taking any

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

                	
                  468

                
	
                  action
      If time permits.

                	 
      	
                  default,
      requiring them to remedy It as soon as practically

                	
                  469

                
	
                  13.4 The
      Owners shall arrange for the provision of any

                	
                  411

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

                	
                  470

                
	
                  necessary
      guarantee bond or other security.

                	
                  412

                	
                  reasonable
      time to the satisfaction of the Owners, the Owners

                	
                  471

                
	
                  13.5 Any
      costs reasonably incurred by the Managers in

                	
                  413

                	
                  shall
      be entitled to terminate the Agreement with immediate
    affect

                	
                  472

                
	
                  carrying
      out their obligations according to Clause
      13 shall be

                	
                  414

                	
                  by
      notice in writing.

                	
                  473

                
	
                  reimbursed
      by the Owners.

                	
                  415

                	
                  (ii)  if
      the Managers are convicted of, or admits guilt for, a
    crime,

                	 
      
	 
      	 
      	
                  then
      the Owners shall be entitled to terminate the Agreement

                	 
      
	
                  14. Auditing

                	
                  416

                	
                  with
      Immediate effect by notice in writing.

                	 
      
	
                  The
      Managers shall at all times maintain and keep true and

                	
                  417

                	
                  18.3  Extraordinary
      Termination

                	
                  474

                
	
                  correct
      accounts and shall make the same available for inspection

                	
                  418

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

                	
                  475

                
	
                  and
      auditing by the Owners at such times as may he mutually

                	
                  419

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

                	
                  476

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

                	
                  420

                	
                  declared
      as a constructive or compromised or arranged total

                	
                  477

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

                	
                  421

                	
                  loss
      or is requisitioned.

                	
                  478

                
	
                  requested,
      the originals where possible, or otherwise certified

                	
                  422

                	
                  18.4  For
      the purpose of sub-clause 18.3
      hereof

                	
                  479

                
	
                  copies,
      of all such accounts and all documents specifically
    relating

                	
                  423

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

                	
                  480

                
	
                  to
      the Vessel and her operation.

                	
                  424

                	
                  been sold or otherwise disposed of shall be the
      date on

                	
                  481

                
	 
      	 
      	
                  which the Owners cease to be registered as Owners
      of

                	
                  482

                
	
                  15.
      Inspection of Vessel

                	
                  425

                	
                  the Vessel;

                	
                  483

                
	
                  The
      Owners shall have the right at any time after
giving

                	
                  426

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

                	
                  484

                
	
                  reasonable
      notice to the Managers to inspect the Vessel for
any

                	
                  427

                	
                  she has become an actual total loss or agreement
      has

                	
                  485

                
	
                  reason
      they consider necessary.

                	
                  428

                	
                  been reached with her underwriters in respect of
      her

                	
                  486

                
	 
      	 
      	
                  constructive, compromised or arranged total loss or
      if such

                	
                  487

                
	
                  16.  Compliance
      with Laws and Regulations

                	
                  429

                	
                  agreement with her underwriters is not reached it
      is

                	
                  488

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

                	
                  430

                	
                  adjudged by a competent tribunal that a
      constructive loss

                	
                  489

                
	
                  might
      cause any breach or infringement of the laws and

                	
                  431

                	
                  of the Vessel has occurred.

                	
                  490

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

                	
                  432

                	
                  18.5
      This Agreement shall terminate forthwith in the event
      of

                	
                  491

                
	 
      	 
      	
                  an
      order being made or resolution passed for the winding up

                	
                  492

                
	
                  17. Duration
      of the Agreement

                	
                  433

                	
                  dissolution,
      liquidation or bankruptcy of either party (otherwise

                	
                  493

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

                	
                  434

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

                	
                  494

                
	
                  in
      Box
      4 and shall remain in force and effect (unless
    earlier

                	
                  435

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

                	
                  495

                
	
                  terminated
      in accordance with the terms of clause 18) for a

                	 
      	
                  on
      business or makes any special arrangement or composition

                	
                  496

                
	
                  minimum
      period of three (3) calendar years and thereafter shall

                	 
      	
                  with
      its creditors,

                	
                  497

                
	
                  continue
      indefinitely unless terminated in accordance with the

                	 
      	
                  18.6 The
      termination of this Agreement egad be without

                	
                  498

                
	
                  provision hereof, continue
      until the date stated in Box
      17

                	 
      	
                  prejudice
      to all rights accrued due between the parties prior to

                	
                  499

                
	
                  Thereafter
      it shall continue until terminated by Upon the
      expiration

                	
                  436

                	
                  the
      date of termination.

                	
                  500

                
	
                  of
      the first calendar year either party giving
      may give

                	 
      	 
      	 
      
	
                  to
      the other notice of termination in writing.  In which event
      the

                	
                  437

                	
                  19.
      Law and Arbitration

                	
                  501

                
	
                  Agreement
      shall

                	 
      	
                  19.1
      This Agreement shall be governed by and construed in

                	
                  502

                
	
                  terminate
      upon the expiration of a period of two months (2) calendar

                	
                  438

                	 
      	 
      

        

        
           

          This
document is a computer generated SHIPMAN 98 form printed by authority cf 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
expenses as a result of discrepancies between the original BIMCO approved
document and this computer generated document.

           

          
            
              
                 

              

              
                 

                
                  

                

              

              
                 

              

            

          

          
            PART
II

             

            "SHIPMAN
98" STANDARD SHIP MANAGEMENT AGREEMENT

             

          

        

        
          
            	
                    accordance
      with English law and any dispute arising out of or

                  	
                    503

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

                  	
                    541

                  
	
                    in
      connection with this Agreement shall be referred to
      arbitration

                  	
                    504

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

                  	
                    542

                  
	
                    in
      London in accordance with the Arbitration Act 1996 or

                  	
                    505

                  	
                    final,
      and for the purposes of enforcing any award

                  	
                    543

                  
	
                    any
      statutory modification or re-enactment thereof save to

                  	
                    506

                  	
                    judgement
      may be entered on an award by any court of

                  	
                    544

                  
	
                    the
      extent necessary to give effect to the provisions of this

                  	
                    507

                  	
                    competent
      jurisdiction.  The proceedings shall be
      conducted

                  	
                    545

                  
	
                    Clause.

                  	
                    508

                  	
                    in
      accordance with the rules of the Society of
Maritime

                  	
                    546

                  
	
                    The
      arbitration shall be conducted in accordance with the

                  	
                    509

                  	
                    Arbitrators,
      Inc.

                  	
                    547

                  
	
                    London
      Maritime Arbitrators Association (LMAA) Terms

                  	
                    510

                  	
                    In
      cases where neither the claim nor any counterclaim

                  	
                    548

                  
	
                    current
      at the time when the arbitration proceedings are

                  	
                    511

                  	
                    exceeds
      the sum of USD60,000 ( or such other sum as the

                  	
                    549

                  
	
                    commenced.

                  	
                    512

                  	
                    parties
      may agree) the arbitration shall be conducted in

                  	
                    550

                  
	
                    The
      reference shall be to three arbitrators. A party wishing

                  	
                    513

                  	
                    accordance
      with the Shortened Arbitration Procedure of the

                  	
                    551

                  
	
                    to
      refer a dispute to arbitration shall appoint its
arbitrator

                  	
                    514

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

                  	
                    552

                  
	
                    and
      send notice of such appointment In writing to the other

                  	
                    515

                  	
                    the
      arbitration proceedings are commenced.

                  	
                    553

                  
	
                    party
      requiring the other party to appoint its own arbitrator

                  	
                    516

                  	
                    19.3  This
      Agreement shall be governed by and construed

                  	
                    554

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

                  	
                    517

                  	
                    in
      accordance with the laws of the place mutually agreed
      by

                  	
                    555

                  
	
                    appoint
      its arbitrator as sole arbitrator unless the other party

                  	
                    518

                  	
                    the
      parties and any dispute arising out of or in
    connection

                  	
                    556

                  
	
                    Appoints
      it own arbitrator and gives notice that it has done

                  	
                    519

                  	
                    with
      this Agreement shall be referred to arbitration at
a

                  	
                    557

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

                  	
                    520

                  	
                    mutually
      agreed place, subject to the procedures applicable

                  	
                    558

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

                  	
                    521

                  	
                    there.

                  	
                    559

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

                  	
                    522

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

                  	
                    560

                  
	
                    arbitration
      may, without the requirement of any further prior

                  	
                    523

                  	
                    clause
      19.1
      of
      this Clause shall apply.

                  	
                    561

                  
	
                    notice
      to the other party, appoint its arbitrator as sole

                  	
                    524

                  	 
      	 
      
	
                    arbitrator
      and shall advise the other party accordingly. The

                  	
                    525

                  	
                    Note:  19.1, 19.2 and 19.3
      are alternatives; indicate

                  	
                    562

                  
	
                    award
      of a sole arbitrator shall be binding on both parties

                  	
                    526

                  	
                    alternative agreed in Box
      18.

                  	
                    563

                  
	
                    as
      If he had been appointed by agreement.

                  	
                    527

                  	 
      	 
      
	
                    Nothing
      herein shall prevent the parties agreeing in writing

                  	
                    528

                  	
                    20. Notices

                  	
                    564

                  
	
                    to
      vary these provisions to provide for the appointment of a

                  	
                    529

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

                  	
                    565

                  
	
                    sole
      arbitrator.

                  	
                    530

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

                  	
                    566

                  
	
                    In
      cases where neither the claim nor any counterclaim

                  	
                    531

                  	
                    registered
      or recorded ma) or by personal service.

                  	
                    567

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

                  	
                    532

                  	
                    20.2 The
      address of the Parties for service of such

                  	
                    568

                  
	
                    parties
      may agree) the arbitration shall be conducted in

                  	
                    533

                  	
                    communication
      shall be as slated In Boxes 19 and
      20,

                  	
                    569

                  
	
                    accordance
      with the LMAA Small Claims Procedure current

                  	
                    534

                  	
                    respectively.

                  	
                    570

                  
	
                    at
      the time when the arbitration proceedings are commenced.

                  	
                    535

                  	 
      	 
      
	
                    19.2                 This
      Agreement shall be governed by and construed

                  	
                    536

                  	
                    Any
      Additional Clauses attached hereto together with any

                  	 
      
	
                    In
      accordance with title 9 of the United States Code
    and

                  	
                    537

                  	
                    subsequent
      addenda, schedules, appendleles or otherwise, shall

                  	 
      
	
                    The
      Maritime Law of the United States and any dispute

                  	
                    538

                  	
                    be
      construed as an integral part of this Agreement and shall
    be

                  	 
      
	
                    arising
      out of or in connection with this Agreement shall
be

                  	
                    539

                  	
                    interpreted
      accordingly.

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

                  	
                    540

                  	 
      	 
      
	 
      	 
      	 
      	 
      

          

          This
document is a computer generated SHIPMAN 98 form printed by authority cf 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
expenses as a result of discrepancies between the original BIMCO approved
document and this computer generated document.d1072828_ex10-3.htm

    EXHIBIT
10.3

     

     

    
FORM OF

     

    
      	 	 	 	 ORIGINAL
	
              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

               

               

            	 
      	
              Name

               

              Scorpio Ship Management
      sam

            
	 
      	
              Place
      of registration office

               

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

            	 
      	
              Place
      of registration 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)

               

              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.

            	
              Owners'
      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

              email:
       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.

     

    
      	 
      	
              Signature(s)
      (Owners)

               

               

               

               

               

            	
              Signature(s)
      (Managers)

               

               

               

            

    

     

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PART
II

    "SHIPMAN
98" STANDARD SHIP MANAGEMENT AGREEMENT

     

    
      	
              1.  
      Definitions

            	
              1

            	
              
                
                  insurance,
      discipline and other requirements;

                

              

            	
              63

            
	
              In
      this Shipman 98 form (together with the Additional Clauses
      of

            	
              2

               

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

            	
              64

               

            
	
              even
      date herewith and any Schedules thereto (the

            	 
      	
              examination
      with a qualified doctor certifying that they are fit

            	
              65

               

            
	
              "Agreement"))
      save where the context otherwise requires,

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

            	
              66

               

            
	
              the
      following words and expressions shall have the meanings

            	
              3

               

            	
              of
      valid medical certificates issued in accordance with

            	
              67

               

            
	
              hereby
      assigned to them.

            	
              4

               

            	
              appropriate flag State requirements, in
      the absence of

            	
              68

               

            
	 
      	 
      	
              applicable
      flag State requirements the medical certificate
    shall

            	
              69

               

            
	
              "Owners"
      means the party identified in Box
      2.

            	
              5

               

            	
              be
      dated not more than three months prior to the
      respective

            	
              70

               

            
	
              "Managers"
      means the party identified in Box
      3.

            	
              6

               

            	
              Crew
      members leaving their country of domicile and

            	
              71

               

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

            	
              7

               

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

            	
              72

               

            
	
              out
      in Annex "A" attached
      hereto.

            	
              8

               

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

            	
              73

               

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

            	
              9

            	
              language
      of a sufficient standard to enable them to perform

            	
              74

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

            	
              10

            	
              their
      duties safely;

            	
              75

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

            	
              11

               

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

            	
              76

               

            
	
              which
      are not particularly referable to any individual vessel
for

            	
              12

               

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

            	
              77

               

            
	
              the
      time being managed by the Managers and which are incurred

            	
              13

               

            	
              (vii)
      conducting union negotiations;

            	
              78

               

            
	
              by
      the Managers for the purpose of providing an efficient and

            	
              14

               

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

            	
              79

               

            
	
              economic
      management service and, without prejudice to the

            	
              15

               

            	
              otherwise
      agreed.

               

            	
              80

               

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

            	
              16

               

            	 
      	 
      
	
              pay,
      training schemes for officers and ratings, cadet training

            	
              17

               

            	
              3.2 
       Technical Management

            	
              81

               

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

            	
              18

               

            	
              (only applicable if agreed according to Box
    6)

            	
              82

               

            
	
              "Severance
      Costs" means the costs which the employers
    are

            	
              19

               

            	
              The
      Managers shall provide technical management which

            	
              83

               

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

            	
              20

               

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

            	
              84

               

            
	
              the
      early termination of any employment contract for service
on

            	
              21

            	
              (i)
      provision of competent personnel to supervise the

            	
              85

               

            
	
              the
      Vessel.

            	
              22

            	
              maintenance
      and general efficiency of the Vessel;

            	
              86

            
	
              "Crew
      insurances" means insurances against crew risks
      which

            	
              23

               

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

            	
              87

               

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

            	
              24

            	
              alterations
      and the upkeep of the Vessel to the standards

            	
              88

               

            
	
              injury,
      shipwreck unemployment indemnity and loss of personal

            	
              25

               

            	
              required
      by the Owners provided that the Managers shall

            	
              89

               

            
	
              effects.

               

            	
              26

               

            	
              be
      entitled to incur the necessary expenditure to ensure

            	
              90

               

            
	
              "Management
      Services" means the services
      specified in sub-

            	
              27

               

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

            	
              91

               

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

            	
              28

               

            	
              Vessel
      and of the places where she trades, and all

            	
              92

               

            
	
              "ISM
      Code" means the International
      Management Code for the

            	
              29

               

            	
              requirements
      and recommendations of the classification

            	
              93

               

            
	
              Safe
      Operation of Ships and for Pollution Prevention as adopted

            	
              30

               

            	
              Society;

            	
              94

               

            
	
              by
      the International Maritime Organization (IMO) by
resolution

            	
              31

               

            	
              (iii)
      arrangement of the supply of necessary victualling, stores, spares
      and

            	
              95

               

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

            	
              32

               

            	
              lubricating
      oil and services for the Vessel;

            	
              96

               

            
	
              "STCW 95" means the International
      Convention on Standards

            	
              33

               

            	
              (iv)
      appointment of surveyors and technical consultants as the

            	
              97

               

            
	
              of
      Training, Certification and Watchkeeping for Seafarers,
    1978,

            	
              34

               

            	
              Managers
      may consider from time to time to be necessary;

            	
              98

               

            
	
              as
      amended in 1995 or any subsequent amendment thereto.

            	
              35

               

            	
              (v)
      development, implementation and maintenance of a Safety

            	
              99

               

            
	 
      	 
      	
              Management
      System (SMS) in accordance with the ISM

            	
              100

               

            
	
              2.  
      Appointment of Managers

            	
              36

            	
              Code
      and an ISPS (see sub-clauses 4.2
      and 5.3).

            	
              101

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

            	
              37

            	
            	 
	
              unless
      and until terminated as provided herein, the Owners

            	
              38

            	
              3.3
      Commercial Management

            	
              102

               

            
	
              hereby
      appoint the Managers and the Managers hereby agree

            	
              39

               

            	
              (only
      applicable if agreed according to Box 7)

            	
              103

               

            
	
              to
      act as the Managers of the Vessel.

            	
              40

               

            	
              The
      Managers shall provide the commercial operation of
    the

            	
              104

            
	
               

               

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

            	
              105

            
	 
      3.  
      Basis of Agreement	
              41

            	
              limited
      to, the following functions:

            	
              106

            
	
              
                Subject
      to the terms and conditions herein provided, during
    the

              

            	
              
                42

              

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

            	
              107

            
	
              
                period
      of this Agreement, the Managers shall carry out

              

            	
              43

            	
              instructions
      which include, but are not limited to, seeking

            	
              108

            
	
               

            	
               

               

            	
              and
      negotiating employment for the Vessel and the
      conclusion

            	
              109

            
	
              Management
      Services in respect of the Vessel as agents for

            	
              44

               

            	
              (including
      the execution thereof) of charter parties or other

            	
              110

               

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

            	
              45

               

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

            	
              111

               

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

            	
              46

               

            	
              contract
      exceeds the period stated in Box 13,
      consent thereto

            	
              112

               

            
	
              discretion
      consider to be necessary to enable them to perform

            	
              47

               

            	
              in
      writing shall first be obtained from the Owners.

            	
              113

               

            
	
              this
      Agreement in accordance with sound ship management

            	
              48

               

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

            	
              114

               

            
	
              practice.

            	
              49

               

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

            	
              115

               

            
	 
      	 
      	
              whatsoever
      nature to which Owners may be entitled arising

            	
              116

               

            
	
              3.1  
      Crew Management

            	
              50

               

            	
              out
      of the employment of or otherwise in connection with
      the

            	
              117

               

            
	
              (only
      applicable if agreed according to Box 5)

            	
              51

               

            	
              Vessel.

               

            	
              118

               

            
	
              The
      Managers shall provide suitably qualified Crew for the
    Vessel

            	
              52

               

            	
              (iii)
      providing voyage estimates and accounts and calculating
      of

            	
              119

               

            
	
              as
      required by the Owners in accordance with the STCW 95

            	
              53

               

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

            	
              120

               

            
	
              requirements,
      provision of which includes but is not limited to

            	
              54

               

            	
              or
      due to the charterers of the Vessel;

            	
              121

               

            
	
              the
      following functions:

            	
              55

               

            	
              (iv)
      issuing of voyage instructions,

            	
              122

               

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

            	
              56

               

            	
              (v) appointing
      agents;

            	 123
	
              arrangements,
      pension administration, and insurances for

            	
              57

               

            	
              (vi)
      appointing stevedores;

            	
              
                124

              

            
	
              the
      Crew other than those mentioned in Clause 6;

            	
              58

               

            	
              (vii)
      arranging surveys associated with the commercial
      operation

            	
              125

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

            	
              59

               

            	
              
                of
      the Vessel.

              

            	
              
                126

              

               

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

            	
              60

               

            	
               

            	
               

            
	
              rank,
      qualification and certification of the Crew and

            	
              61

               

            	 3.4 
       Insurance Arrangements'	127
	
              employment
      regulations including Crew's tax, social

            	
              62

               

            	
              
                (only applicable if agreed according to Box
      8)

              

            	
              
                128

              

            

    

     

    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 originally
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

            	
              129

               

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

            	
              188

               

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

            	
              130

               

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

            	
              189

               

            
	
              have
      instructed or agreed, in particular regarding conditions,

            	
              131

               

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

            	
              190

               

            
	
              insured
      values, deductibles and franchises.

            	
              132

               

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

            	
              191

               

            
	 
      	 
      	
              responsibilities
      imposed by the ISM Code when applicable

            	
              192

               

            
	
              3.5 
       Accounting Services

            	
              133

            	 
      	 
      
	
              (only
      applicable if agreed according to Box
      9)

            	
              134

               

            	
              6.   Insurance
      Policies

               

            	
              193

               

            
	
              The
      Managers shall:

            	
              135

            	
              The
      Owners shall procure, whether by instructing the Managers

            	
              194

            
	
              (i)
      establish an accounting system which meets the

            	
              136

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

            	
              195

            
	
              requirements
      of the Owners and provide regular

            	
              137

               

            	
              this
      Agreement:

            	
              196

               

            
	
              accounting

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

            	
              197

               

            
	
              services,
      supply regular reports and records,

            	
              138

               

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

            	
              198

               

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

            	
              139

               

            	
              as
      the case may be for:

            	
              199

               

            
	
              as
      well as data necessary or proper for the settlement of

            	
              140

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

            	
              200

               

            
	
              accounts
      between the parties.

            	
              141

            	
              negligence)
      and excess liabilities;

            	
              201

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

            	
              202

            
	
              3.6 
       Sale or Purchase of the Vessel

            	
              142

            	
              Crew
      Insurances, FDD cover); and

            	
              203

            
	
              (only
      applicable if agreed according to Box
      10)

            	
              143

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

            	
              204

            
	
              The
      Managers shall, if so requested and in accordance with the Owners'
      instructions,

            	
              144

            	
              (iv)
      Loss of Hire (TBA)

            	 
      
	
              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

              

            	
              145

               

              146

            	
              in
      accordance with the best practice of prudent owners of

               

              
                 

              

            	
              205

               

                 
  

            
	
              negotiation
      of the same.  At any time lost by the Vessel and cost

              associated with the
      sale and purchase of the Vessel will be

            	
              
                147

              

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

              

            	
              206

               

            
	
                 considered as
      contingency and out of budget (please refer to

                 clause 8.10
      hereto).

            	
               

            	
              companies,
      underwriters or associations ("the Owners'

            	
              207

               

            
	 
      	 
      	
              Insurances");

            	
              208

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

            	
              148

            	
              6.2 all
      premiums and calls on the Owners' Insurances are
    paid

            	
              209

            
	
              The
      Managers shall arrange for the supply of provisions.

            	
              149

            	
              promptly
      by their due date;

            	
              210

            
	 
      	 
      	
              6.3  
      the Owners' Insurances name the Managers and,
    subject

            	
              211

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

            	
              150

            	
              to
      underwriters' agreement, any third party designated by the

            	
              212

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

            	
              151

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

            	
              213

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

            	
              152

            	
              obtaining
      cover in respect of each of the insurances specified in

            	
              214

            
	 
      	 
      	
              sub-clause
      6.1;

            	
              215

            
	
              4.   Managers'
      Obligations

            	
              153

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

            	
              216

            
	
              4.1  
      The Managers undertake to use their best endeavours
    to

            	
              154

            	
              are
      liable in respect of premiums or calls arising in
    connection

            	
              217

               

            
	
              provide
      the agreed Management Services as agents for and on

            	
              155

            	
              with
      the Owners' Insurances; or

               

            	
              218

               

            
	
              behalf
      of the Owners in accordance with sound ship management

            	
              156

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

            	
              219

               

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

            	
              157

            	
              Managers
      nor any such third party shall be under any

            	
              220

               

            
	
              all
      matters relating to the provision of services hereunder.

            	
              158

            	
              liability
      in respect of premiums or calls arising in
    connection

            	
              221

               

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

            	
              159

               

            	
              with
      the Owners' Insurances; or

            	
              222

               

            
	
              management
      responsibilities under this Agreement shall be entitled

            	
              160

               

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

            	
              223

               

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

            	
              161

               

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

            	
              224

               

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

            	
              162

               

            	
              blank then (i)
      applies.

            	
              225

               

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

            	
              163

               

            	
              6.4  
      written evidence is provided, to the reasonable
      satisfaction

            	
              226

               

            
	
              the
      Managers shall be entitled to allocate available supplies,

            	
              164

               

            	
              of
      the Managers, of their compliance with their obligations
    under

            	
              227

               

            
	
              manpower
      and services in such manner as in the prevailing

            	
              165

               

            	
              Clause
      6 within a reasonable time of the commencement
      of

            	
              228

               

            
	
              circumstances
      the Managers in their absolute discretion consider

            	
              166

               

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

            	
              229

               

            
	
              to
      be fair and reasonable.

               

            	
              167

               

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

            	
              230

               

            
	
              4.2  
      Where the Managers are providing Technical
    Management

            	
              168

               

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

            	
              169

               

            	
              7.   Income
      Collected and Expenses Paid on Behalf of Owners

            	
              231

               

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

            	
              170

               

            	
              7.1  
      All moneys, collected by the Managers under the terms
      of

            	
              232

               

            
	
              they
      shall in particular be deemed to be the "Company" as
    defined

            	
              171

            	
              this
      Agreement (other than moneys payable by the Owners to

            	
              233

               

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

            	
              172

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

            	
              234

               

            
	
              the
      Vessel and taking over the duties and responsibilities
    imposed

            	
              173

            	
              credit
      of the Owners in a separate bank account.

            	
              235

               

            
	
              by
      the ISM Code when applicable.

            	
              174

            	
              7.2  
      All expenses, incurred by the Managers under the
    terms

            	
              236

               

            
	 
      	 
      	
              of
      this Agreement on behalf of the Owners (including expenses

            	
              237

               

            
	
              5.  
      Owners' Obligations

            	
              175

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

            	
              238

               

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

            	
              176

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

            	
              239

               

            
	
              in
      accordance with the terms of this Agreement.

            	
              177

            	
              event
      remain payable by the Owners to the Managers on

            	
              240

               

            
	
              5.2
      Where the Managers are providing Technical
      Management

            	
              178

               

            	
              demand.

               

            	
              241

               

            
	
              in
      accordance with sub clause 3.2,
      the Owners shall:

            	
              179

               

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

            	
              180

               

            	
              8.   Management
      Fee – see also Additional Clause 24

            	
              242

               

            
	
              their
      behalf comply with the requirements of STCW 95;

            	
              181

            	
              8.1  
      The Owners shall pay to the Managers for their
    services

            	
              243

               

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

            	
              182

            	
              as
      Managers under this Agreement an annual management

            	
              244

               

            
	
              of
      the Managers in connection with the operation of
the

            	
              183

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

            	
              245

               

            
	
              Managers'
      safety management system.

            	
              184

            	
              monthly
      instalments in advance, the first instalment being

            	
              246

               

            
	
              5.3  Where
      the Managers are not providing Technical
      Management

            	
              185

               

            	
              payable on the commencement of this Agreement (see
      Clause

            	
              247

               

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

            	
              186

            	
              2 and Box 6) and subsequent
      instalments being payable every

            	
              248

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

            	
              187

               

            	
              month.

               

            	
              249

               

            
	 
      	
              188

               

            	
              8.2   The
      management fee shall be subject to an annual review

            	
              250

               

            
	 
      	 
      	
              on
      the anniversary date of the Agreement and the proposed

            	
              251

               

            

    

     

    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-

            	
              252

               

            	
              of
      any occasional or extraordinary item of expenditure, such
    as

            	
              304

               

            
	
              clause 9.1

            	
              253

               

            	
              emergency
      repair costs, additional insurance premiums, bunkers

            	
              305

               

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

            	
              254

               

            	
              or
      provisions.  Such funds shall be received by the
      Managers

            	
              306

               

            
	
              their
      own office accommodation, office staff, facilities and

            	
              255

               

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

            	
              307

               

            
	
              stationery.
      Without limiting the generality of Clause 7 the
      Owners

            	
              256

               

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

            	
              308

               

            
	
              shall
      reimburse the Managers for postage and communication

            	
              257

               

            	
              Owners
      in a separate bank account.

               

            	
              309

               

            
	
              expenses,
      travelling expenses, and other out of pocket

            	
              258

               

            	
              9.4  
      The Managers shall produce a comparison between

            	
              310

               

            
	
              expenses
      properly incurred by the Managers in pursuance of

            	
              259

               

            	
              budgeted
      and actual income and expenditure of the Vessel in

            	
              311

               

            
	
              the
      Management Services.

            	
              260

               

            	
              such
      form as required by the Owners monthly
      on a quartly basis

            	
              312

               

            
	
              8.4  
      In the event of the appointment of the Managers
    being

            	
              261

               

            	
              or
      at such other

            	
               

            
	
              terminated
      by the Owners or the Managers in accordance with

            	
              262

               

            	
              intervals
      as mutually agreed

            	
              313

               

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

            	
              263

            	
              9.5  
      Notwithstanding anything contained herein to the
      contrary,

            	
              314

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

            	
              264

            	
               the
      Managers shall in no circumstances be required to use or

            	
              315

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

            	
              265

               

            	
              commit
      their own funds to finance the provision of the

              Management
      Services.

            	
              316

              317

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

            	
              266

               

            	 
      	 
      
	
              be
      payable for a further period of three calendar months as

            	
              267

               

            	
              10.  
      Managers' Right to Sub-Contract

            	
              318

               

            
	
              from
      the termination date.  In addition,  provided that
      the

            	
              268

               

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

            	
              319

               

            
	
              Managers
      provide Crew for the Vessel in accordance with sub-

            	
              269

               

            	
              their
      obligations hereunder, including those mentioned in sub-

            	
              320

               

            
	
              clause
      3.1;

               

            	
              270

               

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

            	
              321

               

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

            	
              271

               

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

            	
              322

               

            
	
              the
      said further period of three calendar months and

            	
              272

            	
              contract
      the Managers shall remain fully liable for the due

            	
              323

               

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

            	
              273

            	
              performance
      of their obligations under this Agreement.

            	
              324

               

            
	
              the Severance Costs which may
      materialize, net

            	
              274

            	 
      	 
      
	
              exceeding  

              the
      amount stated in Box 16.

            	
               

              275

            	
               

              11.  
      Responsibilites

            	
              325

               

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

            	
              276

            	
              11.1 
       Force Majeure –
      Neither the Owners nor the Managers

            	
              326

               

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

            	
              277

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

            	
              327

               

            
	
              than
      three months, an appropriate reduction of the management

            	
              278

            	
              obligations
      hereunder by reason of any cause whatsoever of

            	
              328

               

            
	
              fee
      for the period exceeding three months until one month

            	
              279

               

            	
              any
      nature or kind beyond their reasonable control.

            	
              329

               

            
	
              before
      the Vessel is again put into service shall be mutually

            	
              280

               

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

            	
              330

               

            
	
              agreed
      between the parties.

            	
              281

               

            	
              11.1,   the
      Managers shall be under no liability whatsoever to
    the

            	
              331

               

            
	
              8.6 
       Unless otherwise agreed in writing all discounts
      and

            	
              282

               

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

            	
              332

               

            
	
              commissions
      obtained by the Managers in the course of the

            	
              283

               

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

            	
              333

               

            
	
              management
      of the Vessel shall be credited to the Owners.

            	
              284

               

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

            	
              334

               

            
	
              8.7  
      Where a charterers vetting inspection may be required and
      a

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

            	
              335

               

            
	
              pre-inspection
      is requested, the costs of such additional

            	 
      	
              performance
      of the Management Services UNLESS
      same Is

            	
              336

               

            
	
              services
      shall be charged to the Vessel's account (see cl. 23)

            	 
      	
              proved
      to have resulted solely from the negligence, gross

            	
              337

               

            
	
              8.8 If
      the Vessel is placed on time starter, additional
      expenses

            	 
      	
              negligence
      or wilful default of the Managers or their employees,

            	
              338

               

            
	
              incurred
      in complying with charterers requirements (including,

            	 
      	
              or
      agents or sub-contractors employed by them in connection

            	
              339

               

            
	
              but
      not limited to, additional reporting requirements and
    visits

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

            	
              340

               

            
	
              to
      the charterers) will be paid by the Owners.

            	 
      	
              or
      expense has resulted from the Managers' personal act or

            	
              341

               

            
	
              8.9  
      All fees are exclusive of Value Added Taxes or
other

            	 
      	
              omission
      committed with the intent to cause same or recklessly

            	
              342

               

            
	
               

              applicable
      taxes, if any.

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

            	
              343

               

            
	
              8.10  
      If as a result of collision, accident, emergency, or
      any

            	 
      	
              would
      probably result) the Managers' liability for each Incident

            	
              344

               

            
	
              other
      extraordinary circumstances, the Managers' workload is

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

            	
              345

               

            
	
              increased
      beyond that which the parties could reasonably have

            	 
      	
              exceed
      a total of ten times the annual management fee payable

            	
              346

               

            
	
              anticipated,
      the Managers shall be entitled to reasonable

            	 
      	
              hereunder.

            	
              347

               

            
	
              additional
      remuneration having regard to the nature of the

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

            	
              348

               

            
	
              incident,
      the personnel and resources of the Managers

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

            	
              349

               

            
	
              deployed,
      and all other relevant circumstances including

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

            	
              350

               

            
	
              insurance
      recoveries.

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

            	
              351

               

            
	
            	 
      	
              to
      have resulted from a failure by the Managers to discharge

            	
              352

               

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

            	
              353

               

            
	
              9. 
       Budgets and Management of Funds

            	
              285

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

            	
              354

               

            
	
              9.1 The
      Managers shall present to the Owners annually a

            	
              286

               

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

            	
              355

               

            
	
              budget
      for the following twelve months in such form as the

            	
              287

               

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

            	
              356

               

            
	
              Owners
      require.  The budget for the first year hereof is set
      out

            	
              288

               

            	
              clause
      11.2, the Owners
      hereby undertake to keep the Managers

            	
              357

               

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

            	
              289

               

            	
              and
      their employees, agents and sub-contractors indemnified

            	
              358

               

            
	
              prepared
      by the Managers and submitted to the Owners not

            	
              290

            	
              and
      to hold them harmless against all actions, proceedings,

            	
              359

               

            
	
              less
      than one month before the anniversary date of the

            	
              291

               

            	
              claims,
      demands or liabilities whatsoever or howsoever arising

            	
              360

               

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

            	
              292

               

            	
              which
      may be brought against them or incurred or suffered by

            	
              361

               

            
	
              9.2 The
      Owners shall indicate to the Managers their
    acceptance

            	
              293

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

            	
              362

               

            
	
              and
      approval of the annual budget within one month of

            	
              294

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

            	
              363

               

            
	
              presentation
      and in the absence of any such indication the

            	
              295

            	
              damages
      and expenses (including legal costs and expenses on

            	
              364

               

            
	
              Managers
      shall be entitled to assume that the Owners have

            	
              296

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

            	
              365

               

            
	
              accepted
      the proposed budget.

            	
              297

               

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

            	
              366

               

            
	
              9.3
      Following the agreement of the budget, the Managers
      shall

            	
              298

               

            	
              this
      Agreement.

            	
              367

               

            
	
              prepare
      and present to the Onwers their estimate of the working

            	
              299

               

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

            	
              368

               

            
	
              capital
      requirement of the Vessel and the Managers shall each

            	
              300

               

            	
              employee
      or agent of the Managers (including every sub-

            	
              369

               

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

            	
              301

               

            	 
      	 
      
	
              each
      month request the Owners in writing for the funds required

            	
              302

               

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

            	
              303

               

            	 
      	 
      
	 
      	 
      	 
      	 
      

    

     

    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

            	
              370

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

            	
              432

               

            
	
              any
      circumstances whatsoever be under any liability whatsoever

            	
              371

               

            	
              presently
      in force.  Any additional time and costs arising out
      of

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

            	
              372

               

            	
              the
      requirements for compliance with rules and regulations

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

            	
              373

               

            	
              (including
      research expenses) which may become enforceable

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

            	
              374

               

            	
              on
      the Vessel shall be for Owners account.

            	 
      
	
              with
      his employment and, without prejudice to the generality of

            	
              375

               

            	 
      	 
      
	
              the
      foregoing provisions in this Clause 11, every
      exemption,

            	
              376

            	
              17.  
      Duration of the Agreement

            	
              433

               

            
	
              limitation,
      condition and liberty herein contained and every right,

            	
              377

               

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

            	
              434

               

            
	
              exemption
      from liability, defence and immunity of whatsoever

            	
              378

               

            	
              in
      Box
      4 and shall remain in force and effect (unless
      earlier

            	
              435

               

            
	
              nature
      applicable to the Managers or to which the Managers are

            	
              379

               

            	
              terminated
      in accordance with the terms of clause 18) for a

            	 
      
	
              entitled
      hereunder shall also be available and shall extend to

            	
              380

               

            	
              minimum
      period of three (3) calendar years and thereafter shall

            	 
      
	
              protect
      every such employee or agent of the Managers acting

            	
              381

               

            	
              continue
      indefinitely unless terminated in accordance with the

            	 
      
	
              as
      aforesaid and for the purpose of all the foregoing
    provisions

            	
              382

               

            	
              provisions hereof continue
      until the date stated in Box
      17,

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

            	
              383

               

            	
              Thereafter
      it shall continue until terminated by Upon the expiration
      of

            	
              436

               

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

            	
              384

               

            	
              the
      first calendar year either party giving
      may give

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

            	
              385

               

            	
              to
      the other notice of termination in writing, in which event
      the

            	437
	
              to
      time (including sub-contractors as aforesaid) and all such

            	
              386

               

            	
              Agreement
      shall

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

            	
              387

               

            	
              terminate
      upon the expiration of a period of two months (2)
      calendar

            	
              438

               

            
	
              Agreement.

            	
              388

            	
              years
      from the

            	 
      
	 
      	 
      	
              date
      upon which such notice was given. Clause 18.6 will apply.

            	
              439

               

            
	
              12.  
      Documentation

            	
              389

            	 
      	 
      
	
              Where
      the Managers are providing Technical Management in

            	
              390

            	
              18.  
      Termination

               

            	
              440

               

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

            	
              391

               

            	
              18.1 
       Owners'
    default

            	
              441

               

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

            	
              392

               

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

            	
              442

               

            
	
              upon
      Owners' request, all documentation and records related

            	
              393

               

            	
              with
      immediate effect by notice in writing if any moneys

            	
              443

               

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

            	
              394

               

            	
              payable
      by the Owners under this Agreement and/or the

            	
              444

               

            
	
              which
      the Owners need in order to demonstrate compliance

            	
              395

               

            	
              owners
      of any associated vessel, details of which are listed

            	
              445

               

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

            	
              396

               

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

            	
              446

               

            
	
              a
      third party.

            	
              397

            	
              nominated
      account within ten running days of receipt by

            	
              447

            
	 
      	 
      	
              the
      Owners of the Managers written request or if the Vessel

            	
              448

            
	
              13.  
      General Administration

            	
              398

               

            	
              is
      repossessed by the Mortgagees.

            	
              449

               

            
	
              13.1 
       The Managers shall handle and settle all claims
      arising

            	
              399

               

            	
              (ii) 
      If the Owners:

            	
              450

               

            
	
              out
      of the Management Services hereunder and keep the Owners

            	
              400

               

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

            	
              451

               

            
	
              informed
      regarding any incident of which the Managers become

            	
              401

               

            	
              and
      5.3
      of this Agreement for any reason within their

            	
              452

               

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

            	
              402

               

            	
              control,
      or

            	
              453

               

            
	
              third
      parties. 

            	
              403

               

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

            	
              454

               

            
	
               

            	 
      	
              the
      Vessel in the carriage of contraband, blockade

            	
              455

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

            	
              404

               

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

            	
              456

               

            
	
              or
      defend-actions, suits or proceedings in connection with
      matters

            	
              405

               

            	
              in
      the reasonable opinion of the Managers is unduly

            	
              457

               

            
	
              entrusted
      to the Managers according to this Agreement.

            	
              406

               

            	
              hazardous
      or improper,

            	
              458

               

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

            	
              459

               

            
	
              13.3  
      The Managers shall also have power to obtain legal
    or

            	
              407

               

            	
              requiring
      them to remedy it as soon as practically possible.

            	
              460

               

            
	
              technical
      or other outside expert advice in relation to the handling

            	
              408

               

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

            	
              461

               

            
	
              and
      settlement of claims and disputes or all other matters

            	
              409

               

            	
              reasonable
      time to the satisfaction of the Managers, the

            	
              462

               

            
	
              affecting
      the interests of the Owners in respect of the Vessel, save

            	
              410

               

            	
              Managers
      shall be entitled to terminate the Agreement

            	
              463

               

            
	
              Managers
      should obtain Owners approval prior to taking any

            	 
      	
              with
      Immediate effect by notice in writing.

            	
              464

               

            
	
              action
      if time permits.

            	 
      	
              18.2
        Managers'
      Default

            	
              465

            
	
              13.4 
       The Owners shall arrange for the provision of
      any

            	
              411

            	
              (i)  If the Managers fail to meet their
      obligations under Clauses
      3

            	
              466

               

            
	
              necessary
      guarantee bond or other security.

            	
              412

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

            	
              467

               

            
	
              13.5 
       Any costs reasonably incurred by the Managers
      in

            	
              413

               

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

            	
              468

               

            
	
              carrying
      out their obligations according to Clause
      13 shall be

            	
              414

               

            	
              default,
      requiring them to remedy it as soon as practically

            	
              469

               

            
	
              reimbursed
      by the Owners.

            	
              415

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

            	
              470

               

            
	 
      	 
      	
              reasonable
      time to the satisfaction of the Owners, the Owners

            	
              471

               

            
	
              14.  
      Auditing

            	
              416

               

            	
              shall
      be entitled to terminate the Agreement with immediate
    affect

            	
              472

               

            
	
              The
      Managers shall at all times maintain and keep true and

            	
              417

            	
              by
      notice in writing.

            	
              473

               

            
	
              correct
      accounts and shall make the same available for inspection

            	
              418

            	
              (ii)  If
      the Managers are convicted of, or admits guilt for, a
    crime,

            	 
      
	
              and
      auditing by the Owners at such times as may be mutually

            	
              419

               

            	
              then
      the Owners shall be entitled to terminate the Agreement

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

            	
              420

               

            	
              with
      Immediate effect by notice in writing.

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

            	
              421

               

            	
              18.3
        Extraordinary
      Termination

            	
              474

               

            
	
              requested,
      the originals where possible, or otherwise certified

            	
              422

               

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

            	
              475

               

            
	
              copies,
      of all such accounts and all documents specifically
    relating

            	
              423

               

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

            	
              476

               

            
	
              to
      the Vessel and her operation.

            	
              424

            	
              declared
      as a constructive or compromised or arranged total

            	
              477

               

            
	 
      	 
      	
              loss
      or is requisitioned.

            	
              478

            
	
              15.  
      Inspection of Vessel

            	
              425

            	
              18.4
        For the purpose of sub-clause 18.3
    hereof

            	
              479

            
	
              The
      Owners shall have the right at any time after giving

            	
              426

               

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

            	
              480

               

            
	
              reasonable
      notice to the Managers to inspect the Vessel for any

            	
              427

            	
              been
      sold or otherwise disposed of shall be the date on

            	
              481

               

            
	
              reason
      they consider necessary.

            	
              428

            	
              which
      the Owners cease to be registered as Owners of

            	
              482

               

            
	 
      	 	
              the
      Vessel;

            	
              483

            
	
              16.  
      Compliance with Laws and Regulations

            	
              429

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

            	
              484

               

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

            	
              430

               

            	
              she
      has become an actual total loss or agreement has

            	
              485

               

            
	
              might
      cause any breach or infringement of the laws and

            	
              431

            	
              been
      reached with her underwriters in respect of her

            	
              486

               

            

    

     

    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
expenses 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

            	
              487

               

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

            	
              532

               

            
	
              agreement
      with her underwriters is not reached it is

            	
              488

               

            	
              parties
      may agree) the arbitration shall be conducted in

            	
              533

               

            
	
              adjudged
      by a competent tribunal that a constructive loss

            	
              489

               

            	
              accordance
      with the LMAA Small Claims Procedure current

            	
              534

               

            
	
              of
      the Vessel has occurred.

            	
              490

               

            	
              at
      the time when the arbitration proceedings are commenced.

            	
              535

               

            
	
              18.5   This
      Agreement shall terminate forthwith in the event of

            	
              491

               

            	
              19.2  This
      Agreement shall be governed by and construed

            	
              536

               

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

            	
              492

               

            	
              in
      accordance with Title 9 of the United States Code
    and

            	
              537

               

            
	
              dissolution,
      liquidation or bankruptcy of either party (otherwise

               

            	
              493

               

            	
              the
      Maritime Law of the United States and any dispute

               

            	
              538

               

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

               

            	
              494

               

            	
              arising
      out of or in connection with this Agreement shall be

               

            	
              539

               

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

            	
              495

               

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

            	
              540

               

            
	
              on
      business or makes any special arrangement or composition

            	
              496

               

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

            	
              541

               

            
	
              with
      its creditors.

            	
              497

               

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

            	
              542

               

            
	
              18.6   The
      termination of this Agreement shall be without

            	
              498

               

            	
              final,
      and for the purposes of enforcing any award

            	
              543

               

            
	
              prejudice
      to all rights accrued due between the parties prior to

            	
              499

               

            	
              judgement
      may be entered on an award by any court of

            	
              544

               

            
	
              the
      date of termination.

            	 
      	
              competent
      jurisdiction.  The proceedings shall be
      conducted

            	
              545

               

            
	 
      	 
      	
              in
      accordance with the rules of the Society of
Maritime

            	
              546

               

            
	
              19. 
       Law and Arbitration

            	
              501

            	
              Arbitrators,
      Inc.

            	
              547

            
	
              19.1   This
      Agreement shall be governed by and construed in

            	
              502

               

            	
              In
      cases where neither the claim nor any counterclaim

            	
              548

               

            
	
              accordance
      with English law and any dispute arising out of or

            	
              503

               

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

            	
              549

               

            
	
              in
      connection with this Agreement shall be referred to
      arbitration

            	
              504

               

            	
              parties
      may agree) the arbitration shall be conducted in

            	
              550

               

            
	
              in
      London in accordance with the Arbitration Act 1996 or

            	
              505

               

            	
              accordance
      with the Shortened Arbitration Procedure of the

            	
              551

               

            
	
              any
      statutory modification or re-enactment thereof save to

            	
              506

               

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

            	
              552

               

            
	
              the
      extent necessary to give effect to the provisions of this

            	
              507

               

            	
              the
      arbitration proceedings are commenced.

            	
              553

               

            
	
              Clause.

            	
              508

               

            	
              19.3  This
      Agreement shall be governed by and construed

            	
              554

               

            
	
              The
      arbitration shall be conducted in accordance with the

            	
              509

               

            	
              in
      accordance with the laws of the place mutually agreed
      by

            	
              555

               

            
	
              London
      Maritime Arbitrators Association (LMAA) Terms

            	
              510

               

            	
              the
      parties and any dispute arising out of or in
    connection

            	
              556

               

            
	
              current
      at the time when the arbitration proceedings are

            	
              511

               

            	
              with
      this Agreement shall be referred to arbitration at
a

            	
              557

               

            
	
              commenced.

               

            	
              512

               

            	
              mutually
      agreed place, subject to the procedures applicable

            	
              558

               

            
	
              The
      reference shall be to three arbitrators. A party wishing

            	
              513

               

            	
              there.

            	
              559

               

            
	
              to
      refer a dispute to arbitration shall appoint its
arbitrator

            	
              514

               

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

            	
              560

               

            
	
              and
      send notice of such appointment in writing to the other

            	
              515

               

            	
              clause
      19.1 of this Clause shall
      apply.

            	
              561

               

            
	
              party
      requiring the other party to appoint its own arbitrator

            	
              516

               

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

            	
              517

               

            	
              Note:  19.1, 19.2 and 19.3
      are alternatives;
      indicate

            	
              562

               

            
	
              appoint
      its arbitrator as sole arbitrator unless the other party

            	
              518

               

            	
              alterative
      agreed in Box 18..

               

            	
              563

               

            
	
              appoints
      its own arbitrator and gives notice that it has done

            	
              519

               

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

            	
              520

               

            	
              20.  
      Notices

            	
              564

               

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

            	
              521

               

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

            	
              565

               

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

            	
              522

               

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

            	
              566

               

            
	
              arbitration
      may, without the requirement of any further prior

            	
              523

               

            	
              registered
      or recorded mail) or by personal service.

            	
              567

               

            
	
              notice
      to the other party, appoint its arbitrator as sole

            	
              524

               

            	
              20.2 
       The address of the Parties for service of
      such

            	
              568

               

            
	
              arbitrator
      and shall advise the other party accordingly. The

            	
              525

            	
              communication
      shall be as stated in Boxes
      19 and 20,

            	
              569

               

            
	
              award
      of a sole arbitrator shall be binding on both parties

            	
              526

               

            	
              respectively.

            	
              570

               

            
	
              as
      if he had been appointed by agreement.

            	
              527

            	 
      	 
      
	
              Nothing
      herein shall prevent the parties agreeing in writing

            	
              528

               

            	
              The Additional
      Clauses attached hereto together with any

            	 
      
	
              to
      vary these provisions to provide for the appointment of a

            	
              529

               

            	
              subsequent
      addenda, schedules, appendices or otherwise, shall

            	 
      
	
              sole
      arbitrator.

            	
              530

               

            	
              be
      construed as an integral part of this Agreement and shall
    be

            	 
      
	
              In
      cases where neither the claim nor any counterclaim

            	
              531

               

            	
              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, Iightering 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 endeavors 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 wilt 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

              	 
      	
                 

              
	 
      	 
      	 
      
	 
      	 
      	
                
                

              
	
                For
      the Owners:

                 

                By:

                Its:

                                                
      

                 

                 

              	 
      	
                For
      the Managers:

                 

                 

                 

                 

              
	 
      	 
      	 
      

      

      

      

      

      SK 99999
0010 1072828

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]