Document:

QuickLinks
 -- Click here to rapidly navigate through this document
Exhibit 10.1  

        THIS
REGISTRATION RIGHTS AGREEMENT (this "Agreement"), is made and entered into as of June     , 2005 by and between
Eagle Bulk Shipping Inc., a Marshall Islands corporation (the "Company") and Eagle Ventures LLC, a Marshall Islands limited liability company
(the "LLC"). The LLC, those employees of the Company or its subsidiaries who become parties to this Agreement pursuant to Section 11.5
(collectively, the "Management Stockholders") and any Person that becomes a party to this Agreement after the date hereof pursuant to
Section 11.6 (any such Person, an "Outside Investor") are hereinafter referred to collectively as the
"Stockholders." Capitalized terms used herein without definition are defined in Section 10. 

        WHEREAS,
the parties hereto wish to set forth certain rights and obligations with respect to the registration of the shares of Common Stock under the Securities Act. 

        NOW,
THEREFORE, in consideration of the mutual covenants and obligations set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows: 

        1.    Registrations Upon Request.    

        1.1    Requests by the LLC.    At any time, the LLC shall have the right to request that the Company effect the
registration under the Securities Act of all or a portion of the Registrable Securities owned by the LLC, each such request to specify the intended method or methods of disposition thereof. Upon any
such request, the Company will promptly, but in any event within fifteen (15) days, give written notice of such request to all holders of Registrable Securities and thereupon the Company will,
subject to Section 1.4, use its best efforts to effect the prompt registration under the Securities Act of: 

        (a)   the
Registrable Securities which the Company has been so requested to register by the LLC, and 

        (b)   all
other Registrable Securities which the Company has been requested to register by the holders thereof by written request given to the Company by such holders within
fifteen (15) days after the giving of such written notice by the Company to such holders, 

all
to the extent required to permit the disposition of the Registrable Securities so to be registered in accordance with the intended method or methods of disposition of the LLC. 

        Notwithstanding
the foregoing, but subject to the rights of holders of Registrable Securities under Section 2, (a) if the Board
determines in its good faith judgment, after consultation with a firm of nationally recognized underwriters, that a requested registration under this Section 1.1 will have a material and
adverse effect on the offering price or marketability of the securities being sold in a then contemplated IPO, the Company may defer the filing (but not the preparation) of the registration statement
which is required to effect such registration during the period starting with the 30th day immediately preceding the date of anticipated filing by the Company of the registration statement and ending
on the later of (i) a date 60 days following the effective date of the registration statement relating to such IPO or
(ii) such later date (not to exceed 180 days) as may be required by the managing underwriter of the IPO,  provided that at all times the Company is in
good faith using all reasonable efforts to cause such registration statement to be filed as soon as
possible and provided, further, that such period shall end on such earlier date as may be permitted by
the underwriters of such underwritten public offering, and (b) if the Company shall at any time furnish to the LLC a certificate signed by the president
of the Company stating that the Company has pending or in process a material transaction (including, but not limited to, a financing transaction), the disclosure of which would, in the good faith
judgment of the Board, materially and adversely affect the Company, the Company may defer the filing (but not the preparation) of a registration statement to be filed pursuant to this
Section 1.1 for up to sixty (60) days (but the Company shall use its best efforts to complete the transaction and file the registration statement as soon as possible). 

 

        1.2    Registration Statement Form.    A registration requested pursuant to Section 1.1 shall be effected by
the filing of a registration statement on a form agreed to by the LLC. 

        1.3    Expenses.    The Company shall pay all Registration Expenses in connection with any registration requested
under Section 1.1; provided that each seller of Registrable Securities shall pay all Registration Expenses to the extent required to be paid by
such seller under applicable law and all underwriting discounts and commissions and transfer taxes, if any. 

        1.4    Priority in Demand Registrations.    If a registration pursuant to Section 1.1 involves an underwritten
offering, and the managing underwriter (or, in the case of an offering which is not underwritten, a nationally recognized investment banking firm) shall advise the Company in writing (with a copy to
each Person requesting registration of Registrable Securities) that, in its opinion, the number of securities requested, and otherwise proposed to be included in such registration, exceeds the number
which can be sold in such offering without materially and adversely affecting the marketability or offering price of the securities being sold in such registration, the Company shall include in such
registration, to the extent of the number which the Company is so advised can be sold in such offering without such material adverse effect, first, the
Registrable Securities of the LLC, the Management Stockholders, if any, and the Outside Investors, if any, on a pro rata basis (based on the number of
shares of Registrable Securities owned by each such Stockholder), and second, the securities, if any, being sold by the Company. Notwithstanding the
foregoing, the Management Stockholders, if any, shall not be entitled to participate in any such registration requested by the LLC to the extent that the managing underwriter (or, in the case of an
offering that is not underwritten, a nationally recognized investment banking firm) shall determine in good faith and in writing (with a copy to each affected Person requesting registration of
Registrable Securities), that the participation of management would materially and adversely affect the marketability or offering price of the securities being sold in such registration, it being
understood that the Company shall include in such registration that number of shares of the Management Stockholders which can be sold in such offering without materially and adversely affecting the
marketability or offering price of the other securities to be sold in such registration. In the event of any such determination under this Section 1.4, the Company shall give the affected
holders of Registrable Securities notice of such determination and in lieu of the notice otherwise required under Section 1.1. 

        2.    Incidental Registrations.    If the Company at any time proposes to register any of its equity securities under
the Securities Act for its own account (including, but not limited to, a shelf registration statement on Form S-3, but other than pursuant to a registration on
Form S-4 or S-8 or any successor form), then the Company shall give prompt written notice to all holders of Registrable Securities regarding such proposed registration.
Upon the written request of any such holder made within 15 days after the receipt of any such notice (which request shall specify the number of Registrable Securities intended to be disposed of
by such holder and the intended method or methods of disposition thereof), the Company shall use its best efforts to effect the registration under the Securities Act of such Registrable Securities on
a pro rata basis in accordance with such intended method or methods of disposition, provided that: 

        (a)   (i) the Company shall not include Registrable Securities in such proposed registration to the extent that the Board shall
have determined, after consultation with the managing underwriter for such offering, that it would materially and adversely affect the marketability or the offering price of the securities being sold
in such registration to include any Registrable Securities in such registration and (ii) the Company shall not include Registrable Securities of any
Management Stockholder, if any, in any proposed registration pursuant to this Section 2 to the extent that the managing underwriter (or, in the case of an offering that is not underwritten, a
nationally recognized investment banker) shall determine in good faith that the participation of such Management Stockholder, if any, would materially and adversely affect the marketability or the
offering price of the securities being sold in such registration and provided, further, that in the 

2

 

event
of any such determination under clause (i) or (ii), the Company shall give the affected holders of Registrable Securities notice of such determination and in lieu of the notice otherwise
required by the first sentence of this Section 2; 

        (b)   if,
at any time after giving written notice (pursuant to this Section 2) of its intention to register equity securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall determine for any reason not to register such equity securities, the Company may, at its election, give written
notice of such determination to each holder of Registrable Securities and, thereupon, shall not be obligated to register any Registrable Securities in connection with such registration (but shall
nevertheless pay the Registration Expenses in connection therewith), without prejudice, however, to the rights of the LLC that a registration be effected under Section 1.1; 

        (c)   if
in connection with a registration pursuant to this Section 2, the managing underwriter of such registration (or, in the case of an offering that is not
underwritten, a nationally recognized investment banking firm) shall advise the Company in writing (with a copy to each holder of Registrable Securities requesting registration thereof) that the
number of securities requested and otherwise proposed to be included in such registration exceeds the number which can be sold in such offering without materially and adversely affecting the
marketability or offering price of the securities being sold in such registration, then in the case of any registration pursuant to this Section 2, the Company shall include in such
registration to the extent of the number which the Company is so advised can be sold in such offering without such material adverse effect, first, the
securities, if any, being sold by the Company, and second, the Registrable Securities of the LLC, the Management Stockholders, if any, and the Outside
Investors, if any, on a pro rata basis (based on the number of shares of Registrable Securities owned by each such Stockholder); and 

        (d)   the
Company shall have no obligation under this Section 2 to use its best efforts to effect any registration of Registrable Securities which any Management
Stockholder, if any, or Outside Investor, if any, has requested to be registered, unless Registrable Securities owned by the LLC or its Permitted Transferees shall be included in such registration or
unless the LLC in its sole discretion determines otherwise. 

        The
Company shall pay all Registration Expenses in connection with each registration of Registrable Securities requested pursuant to this Section 2,  provided that each seller of Registrable Securities
shall pay all Registration Expenses to the extent required to be paid by such seller under
applicable law and all underwriting discounts and commissions and transfer taxes, if any. No registration effected under this Section 2 shall relieve the Company from its obligation to effect
registrations under Section 1.1. 

        3.    Registration Procedures.    If and whenever the Company is required to use its best efforts to effect the
registration of any Registrable Securities under the Securities Act pursuant to Section 1.1 or Section 2, the Company shall promptly: 

        (a)   prepare,
and as soon as practicable, but in any event within sixty (60) days thereafter, file with the Commission, a registration statement with respect to such
Registrable Securities, make all required filings with the NASD and use its best efforts to cause such registration statement to become effective as soon as practicable; 

        (b)   prepare
and promptly file with the Commission such amendments and post-effective amendments and supplements to such registration statement and the prospectus
used in connection therewith as may be necessary to keep such registration statement effective for so long as is required to comply with the provisions of the Securities Act and to complete the
disposition of all securities covered by such registration statement in accordance with the intended method or 

3

 

methods
of disposition thereof, but in no event for a period of more than six months after such registration statement becomes effective; 

        (c)   furnish
copies of all documents proposed to be filed with the Commission in connection with such registration to (i)
counsel selected by the LLC in the case of a registration pursuant to Section 1.1 and otherwise the Majority Holders, and which counsel may also be counsel to the Company, and
(ii) each seller of Registrable Securities (or in the case of the initial filing of a registration statement, within five business days of such initial
filing) and such documents shall be subject to the review of such counsel; provided that the Company shall not file any registration statement or any
amendment or post-effective amendment or supplement to such registration statement or the prospectus used in connection therewith to which such counsel shall have reasonably objected on
the grounds that such registration statement amendment, supplement or prospectus does not comply (explaining why) in all material respects with the requirements of the Securities Act or of the rules
or regulations thereunder; 

        (d)   furnish
to each seller of Registrable Securities, without charge, such number of conformed copies of such registration statement and of each such amendment and
supplement thereto (in each case including all exhibits and documents filed therewith) and such number of copies of the prospectus included in such registration statement (including each preliminary
prospectus and any summary prospectus) and any other prospectus filed under Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other
documents, as such seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller in accordance with the intended method or methods of
disposition thereof; 

        (e)   use
its best efforts to register or qualify such Registrable Securities covered by such registration statement under the securities or blue sky laws of such
jurisdictions as each seller shall reasonably request, and do any and all other acts and things which may be necessary or advisable to enable such seller to consummate the disposition of such
Registrable Securities in such jurisdictions in accordance with the intended method or methods of disposition thereof, provided that the Company shall
not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction wherein it is not so qualified, subject itself to taxation in any jurisdiction
wherein it is not so subject, or take any action which would subject it to general service of process in any jurisdiction wherein it is not so subject; 

        (f)    use
its best efforts to cause all Registrable Securities covered by such registration statement to be registered with or approved by such other governmental agencies,
authorities or self-regulatory bodies as may be necessary by virtue of the business and operations of the Company to enable the seller or sellers thereof to consummate the disposition of
such Registrable Securities in accordance with the intended method or methods of disposition thereof; 

        (g)   furnish
to the LLC: 

        (i)    an
opinion of counsel for the Company experienced in securities law matters, dated the effective date of the registration statement (and, if such registration includes
an underwritten public offering, the date of the closing under the underwriting agreement), and 

        (ii)   a
"comfort" letter (unless the registration is pursuant to Section 2 and such a letter is not otherwise being furnished to the Company), dated the effective date
of such registration statement (and if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement), signed by the independent public
accountants who have issued an audit report on the Company's financial statements included in the registration statement, 

4

 

covering
(in the case of (i) and (ii)) such matters as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to the underwriters in underwritten public
offerings of securities and such other matters as the LLC may reasonably request; 

        (h)   notify
each seller of any Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under
the Securities Act of the happening of any event or existence of any fact as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and, as
promptly as is practicable, prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered
to the purchasers of such securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing; 

        (i)    otherwise
comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings
statement of the Company (in form complying with the provisions of Rule 158 under the Securities Act) covering the period of at least
12 months, but not more than 18 months, beginning with the first month after the effective date of such registration statement; 

        (j)    notify
each seller of any Registrable Securities covered by such registration statement (i) when the prospectus or any
prospectus supplement or post-effective amendment has been filed, and, with respect to such registration statement or any post-effective amendment, when the same has become
effective, (ii) of any request by the Commission for amendments or supplements to such registration statement or to amend or to supplement such
prospectus or for additional information, (iii) of the issuance by the Commission of any stop order suspending the effectiveness of such registration
statement or the initiation of any proceedings for that purpose and (iv) of the suspension of the qualification of such securities for offering or sale
in any jurisdiction, or of the institution of any proceedings for any of such purposes; 

        (k)   use
every reasonable effort to obtain the lifting of any stop order that might be issued suspending the effectiveness of such registration statement at the earliest
possible moment; 

        (l)    use
its best efforts (i) (A) to list such Registrable Securities on any
securities exchange on which the equity securities of the Company are then listed or, if no such equity securities are then listed, on an exchange selected by the Company, if such listing is then
permitted under the rules of such exchange, or (B) if such listing is not practicable, to secure designation of such securities as a NASDAQ "national
market system security" within the meaning of Rule 11Aa2-1 under the Exchange Act or, failing that, to secure NASDAQ authorization for such Registrable Securities, and, without
limiting the foregoing, to arrange for at least two market makers to register as such with respect to such Registrable Securities with the NASD, and
(ii) to provide a transfer agent and registrar for such Registrable Securities not later than the effective date of such registration statement and to
instruct such transfer agent (A) to release any stop transfer order with respect to the certificates with respect to the Registrable Securities being
sold and (B) to furnish certificates without restrictive legends representing ownership of the shares being sold, in such denominations requested by the
sellers of the Registrable Securities or the lead underwriter; 

        (m)  enter
into such agreements and take such other actions as the LLC, counsel to the Majority Holders (if applicable), or the underwriters reasonably request in order to
expedite or facilitate the disposition of such Registrable Securities, including, without limitation, preparing for, and participating in, such number of "road shows" and all such other customary
selling efforts as the underwriters reasonably request in order to expedite or facilitate such disposition; 

5

 

        (n)   furnish
to any holder of such Registrable Securities such information and assistance as the LLC or, if applicable, counsel to the Majority Holders, may reasonably
request in connection with any "due
diligence" effort which the LLC or counsel to the Majority Holders, as the case may be, deems appropriate; and 

        (o)   use
its best efforts to take all other steps necessary to effect the registration of such Registrable Securities contemplated hereby. 

        As
a condition to its registration of Registrable Securities of any prospective seller, the Company may require such seller of any Registrable Securities as to which any registration is
being effected to execute powers-of-attorney, custody arrangements and other customary agreements appropriate to facilitate the offering and to furnish to the Company such
information regarding such seller, its ownership of Registrable Securities and the disposition of such Registrable Securities as the Company may from time to time reasonably request in writing and as
shall be required by law in connection therewith. Each such holder agrees to furnish promptly to the Company all information required to be disclosed in order to make the information previously
furnished to the Company by such holder not materially misleading. 

        The
Company agrees not to file or make any amendment to any registration statement with respect to any Registrable Securities, or any amendment of or supplement to the prospectus used in
connection therewith, which refers to any holder of Registrable Securities, or otherwise identifies any holder of Registrable Securities as the holder of any Registrable Securities, without the
consent of such holder, such consent not to be unreasonably withheld or delayed, unless such disclosure is required by law. 

        By
acquisition of Registrable Securities, each holder of such Registrable Securities shall be deemed to have agreed that upon receipt of any notice from the Company of the happening of
any event of the kind described in Section 3(h), such holder will promptly discontinue such holder's disposition of Registrable Securities pursuant to the registration statement covering such
Registrable Securities until such holder's receipt of the copies of the supplemented or amended prospectus contemplated by Section 3(h). If so directed by the Company, each holder of
Registrable Securities will deliver to the Company (at the Company's expense) all copies, other than permanent file copies, in such holder's possession of the prospectus covering such Registrable
Securities at the time of receipt of such notice. In the event that the Company shall give any such notice, the period mentioned in Section 3(a) shall be extended by the number of days during
the period from and including the date of the giving of such notice to and including the date when each seller of any Registrable Securities covered by such registration statement shall have received
the copies of the supplemented or amended prospectus contemplated by Section 3(h). 

        4.    Underwritten Offerings.    

        4.1    Underwriting Agreement.    If requested by the underwriters for any underwritten offering pursuant to a
registration requested under Section 1.1 or Section 2, the Company shall enter into an underwriting agreement with the underwriters for such offering, such agreement to be reasonably
satisfactory in substance and form to the underwriters and to the LLC (unless the LLC is not participating in such registration, in which case, counsel to the Majority Holders). Any such underwriting
agreement shall contain such representations and warranties by the Company and such other terms and provisions as are customarily contained in agreements of this type, including, without limitation,
indemnities to the effect and to the extent provided in Section 8. Each holder of Registrable Securities to be distributed by such underwriter who owns 10% or more of the Common Stock of the
Company (computed on a fully-diluted basis) at the time of the such offering shall be a party to such underwriting agreement and may, at such holder's option, require that any or all of the
representations and warranties by, and the agreements on the part of, the Company to and for the benefit of such underwriters be made to and for the benefit of such holder of Registrable Securities
and that any or all 

6

 

of
the conditions precedent to the obligations of such underwriters under such underwriting agreement shall also be conditions precedent to the obligations of such holder of Registrable Securities.
The Management Stockholders and Outside Investors, if any, in their capacities as stockholders and/or controlling persons (but not in their capacities as managers of the Company) shall not be required
by any underwriting agreement to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such
holder, the ownership of such holder's Registrable Securities and such holder's intended method or methods of disposition and any other representation required by law or to furnish any indemnity to
any Person which is broader than the indemnity furnished by such holder pursuant to Section 8.2. 

        4.2    Selection of Underwriters.    If the Company at any time proposes to register any of its securities under the
Securities Act for sale for its own account pursuant to an underwritten offering, the Company will have the right to select the managing underwriter (which shall be of nationally recognized standing)
to administer the offering, but if the LLC and its Affiliates at such time own at least 10% of the number of shares of Common Stock they own on the date hereof, only with the approval of the LLC, such
approval not to be unreasonably withheld. Notwithstanding the foregoing sentence, whenever a registration requested pursuant to Section 1.1 is for an underwritten offering, the LLC will have
the right to select the managing underwriter (which shall be of nationally recognized standing) to administer the offering, but only with the approval of the Company, such approval not to be
unreasonably withheld. 

        5.    Holdback Agreements.    

        (a)   If
and whenever the Company proposes to register any of its equity securities under the Securities Act for its own account (other than on Form S-4 or
S-8 or any successor form) or is required to use its best efforts to effect the registration of any Registrable Securities under the Securities Act pursuant to Section 1.1 or
Section 2, each holder of Registrable Securities agrees by acquisition of such Registrable Securities not to effect any sale or distribution, including any sale pursuant to Rule 144
under the Securities Act, or to request registration under Section 1.1 of any
Registrable Securities within seven days prior to and 90 days (unless advised by the managing underwriter that a longer period, not to exceed 180 days, is required, or such shorter
period as the managing underwriter for any underwritten offering may agree) after the effective date of the registration statement relating to such registration (the "Trigger
Date"), except as part of such registration or unless, in the case of a sale or distribution not involving a public offering, the transferee agrees in writing to be subject to
this Section 5, even if such Registrable Securities cease to be Registrable Securities upon such transfer; provided that, with respect to any
shelf registration statement on Form S-3, the Trigger Date shall be the pricing of any offering made under such registration statement. If requested by such managing underwriter,
each holder of Registrable Securities agrees to execute an agreement to such effect with the Company and consistent with such managing underwriter's customary form of holdback agreement. 

7

  

        (b)   The
Company agrees not to effect any public sale or distribution of its equity securities or securities convertible into or exchangeable or exercisable for any of such
securities within seven days prior to and 90 days (or such longer period, not to exceed 180 days, which may be required by the managing underwriter, or such shorter period as the
managing underwriter may agree) after the Trigger Date with respect to any registration statement filed pursuant to Section 1.1 (except (i) as
part of such registration, (ii) as permitted by any related underwriting agreement, (iii) pursuant to an
employee equity compensation plan, (iv) pursuant to an acquisition or strategic relationship, bank or equipment financing or similar transaction or
(v) pursuant to a registration on Form S-4 or S-8 or any successor form);  provided that, with respect to any shelf registration statement on
Form S-3, the Trigger Date shall be the pricing of any offering
made under such registration statement. In addition, if, and to the extent requested by the managing underwriter, the Company shall use its best efforts to cause each holder (other than any holder
already subject to Section 5(a)) of its equity securities or any securities convertible into or exchangeable or exercisable for any of such securities, whether outstanding on the date of this
Agreement or issued at any time after the date of this Agreement (other than any such securities acquired in a public offering), to agree not to effect any such public sale or distribution of such
securities during such period, except as part of any such registration if permitted, and to cause each such holder to enter into an agreement to such effect with the Company and consistent with such
managing underwriter's customary form of holdback agreement. 

        6.    Preparation; Reasonable Investigation.    In connection with the preparation and filing of each registration
statement registering Registrable Securities under the Securities Act, the Company shall give counsel to the holders of such Registrable Securities so to be registered the opportunity to participate
in the preparation of such registration statement, each prospectus included therein or filed with the Commission, and each amendment thereof or supplement thereto, and shall give such counsel access
to the financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries and opportunities to discuss the business of the Company with its officers and the
independent public accountants who have issued audit reports on its financial statements in each case as shall be reasonably requested by such counsel in connection with such registration statement. 

        7.    No Grant of Future Registration Rights.    The Company shall not grant any other demand or incidental
registration rights to any other Person without the prior written consent of the LLC, so long as the LLC, together with its Affiliates, continue to own at least 10% of the number of shares of Common
Stock that the LLC owns on the date hereof. No third party Person shall be granted rights to register any shares of the Company that have priority in any registration to the rights of the Management
Stockholders, if any, hereunder, unless such rights also have priority in such registration over the rights granted to the LLC hereunder. 

        8.    Indemnification.    

        8.1    Indemnification by the Company.    In the event of any registration of any Registrable Securities pursuant to
this Agreement, the Company shall indemnify, defend and hold harmless (a) each seller of such Registrable Securities,
(b) the directors, members, stockholders, officers, partners, employees, agents and Affiliates of such seller,
(c) each Person who participates as an underwriter in the offering or sale of such securities and (d)
each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any of the foregoing against any and all losses, claims,
damages or liabilities (or actions or proceedings in respect thereof), jointly or severally, directly or indirectly, based upon or arising out of (i)
any untrue statement or alleged untrue statement of a fact contained in any registration statement under which such Registrable Securities were registered under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained therein or used in connection with the offering of securities covered thereby, or any amendment or supplement thereto, or
(ii) any omission or alleged omission to state a fact required 

8

 

to
be stated therein or necessary to make the statements therein not misleading; and the Company will reimburse each such indemnified party for any legal or any other expenses reasonably incurred by
them in connection with enforcing its rights hereunder or under the underwriting agreement entered into in connection with such offering or investigating, preparing, pursuing or defending any such
loss, claim, damage, liability, action or proceeding, except insofar as any such loss, claim, damage, liability, action, proceeding or expense arises out of or is based upon an untrue statement or
omission made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information
furnished to the Company by such seller expressly for use in the preparation thereof in accordance with the second sentence of Section 8.2. Such indemnity shall remain in full force and effect,
regardless of any investigation made by such indemnified party and shall survive the transfer of such Registrable Securities by such seller. If the Company is entitled to, and does, assume the defense
of the related action or proceedings provided herein, then the indemnity agreement contained in this Section 8.1 shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability, action or proceeding if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld or delayed). 

        8.2    Indemnification by the Sellers.    The Company may require, as a condition to including any Registrable
Securities in any registration statement filed pursuant to Section 1.1 or Section 2 that the Company shall have received an undertaking satisfactory to it from each of the prospective
sellers of such Registrable Securities to indemnify and hold harmless, severally, not jointly, in the same manner and to the same extent as set forth in Section 8.1, the Company, its directors,
officers, employees, agents and each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company, with respect to
any statement or alleged statement in or omission or alleged omission from such registration statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, if such statement or alleged statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by
such seller expressly for use in the preparation of such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement. The Company and the holders of
the Registrable Securities in their capacities as stockholders and/or controlling persons (but not in their capacities as managers of the Company) hereby acknowledge and agree that, unless otherwise
expressly agreed to in writing by such holders, the only information furnished or to be furnished to the Company for use in any registration statement or prospectus relating to the Registrable
Securities or in any amendment, supplement or preliminary
materials associated therewith are statements specifically relating to (a) transactions between such holder and its Affiliates, on the one hand, and the
Company, on the other hand, (b) the beneficial ownership of shares of Common Stock by such holder and its Affiliates and
(c) the name and address of such holder. If any additional information about such holder or the plan of distribution (other than for an underwritten
offering) is required by law to be disclosed in any such document, then such holder shall not unreasonably withhold its agreement referred to in the immediately preceding sentence of this
Section 8.2. Such indemnity shall remain in full force and effect, regardless of any investigation made by or on behalf of the Company or any such director, officer or controlling person and
shall survive the transfer of such Registrable Securities by such seller. The indemnity agreement contained in this Section 8.2 shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability, action or proceeding if such settlement is effected without the consent of such seller (which consent shall not be unreasonably withheld or delayed). The indemnity provided
by each seller of Registrable Securities under this Section 8.2 shall be limited in amount to the net amount of proceeds actually received by such seller from the sale of Registrable Securities
pursuant to such registration statement. 

        8.3    Notices of Claims, etc.    Promptly after receipt by an indemnified party of notice of the commencement of any
action or proceeding involving a claim referred to in the preceding paragraphs 

9

 

of
this Section 8, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the indemnifying party of the commencement of
such action or proceeding, provided that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party
of its obligations under the preceding paragraphs of this Section 8, except to the extent that the indemnifying party is materially prejudiced by such failure to give notice. In case any such
action is brought against an indemnified party, the indemnifying party shall be entitled to participate therein and to assume the defense thereof, jointly with any other indemnifying party similarly
notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party will not be liable to such indemnified party for any legal or other expenses subsequently incurred by the latter in connection with the defense
thereof except for the reasonable fees and expenses of any counsel retained by such indemnified party to monitor such action or proceeding. Notwithstanding the foregoing, if such indemnified party
reasonably determines, based upon advice of independent counsel, that a conflict of interest may exist between the indemnified party and the indemnifying party with respect to such action and that it
is advisable for such indemnified party to be represented by separate counsel, such indemnified party may retain other counsel, reasonably satisfactory to the indemnifying party, to represent such
indemnified party, and the indemnifying party shall pay all reasonable fees and expenses of such counsel. No indemnifying party, in the defense of any such claim or litigation, shall, except with the
consent of such indemnified party, which consent shall not be unreasonably withheld, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. 

        8.4    Other Indemnification.    Indemnification similar to that specified in the preceding paragraphs of this
Section 8 (with appropriate modifications) shall be given by the Company and each seller of Registrable Securities with respect to any required registration (other than under the Securities
Act) or other
qualification of such Registrable Securities under any federal or state law or regulation of any governmental authority. 

        8.5    Indemnification Payments.    Any indemnification required to be made by an indemnifying party pursuant to this
Section 8 shall be made by periodic payments to the indemnified party during the course of the action or proceeding, as and when bills are received by such indemnifying party with respect to an
indemnifiable loss, claim, damage, liability or expense incurred by such indemnified party. 

        8.6    Other Remedies.    If for any reason any indemnification specified in the preceding paragraphs of this
Section 8 is unavailable, or is insufficient to hold harmless an indemnified party, other than by reason of the exceptions provided therein, then the indemnifying party shall contribute to the
amount paid or payable by the indemnified party as a result of such losses, claims, damages, liabilities, actions, proceedings or expenses in such proportion as is appropriate to reflect the relative
benefits to and faults of the indemnifying party on the one hand and the indemnified party on the other and the statements or omissions or alleged statements or omissions which resulted in such loss,
claim, damage, liability, action, proceeding or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by
the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statements or omissions. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
Notwithstanding the other provisions of this Section 8, in respect of any claim for indemnification pursuant to this Section 8, no indemnifying party (other than the Company) shall be
required to contribute pursuant to this Section 8.6 any amount in excess of (a) the 

10

 

net
proceeds received and retained by such indemnifying party from the sale of its Registrable Securities covered by the applicable registration statement, preliminary prospectus, final prospectus, or
supplement or amendment thereto, filed pursuant hereto minus (b) any amounts previously paid by such
indemnifying party pursuant to this Section 8 in respect of such claim, it being understood that insofar as such net proceeds have been distributed by any indemnifying party to its partners,
stockholders or members, the amount of such indemnifying party's contribution hereunder shall be limited to the net proceeds which it actually recovers from its partners, stockholders or members based
upon their relative fault and that to the extent that such indemnifying party has not distributed such net proceeds, the amount such indemnifying party's contribution hereunder shall be limited by the
percentage of such net proceeds which corresponds to the percentage equity interests in such indemnifying party held by those of its partners, stockholders or members who have been determined to be at
fault. No party shall be liable for contribution under this Section 8.6 except to the extent and under such circumstances as such party would have been liable for indemnification under this
Section 8 if such indemnification were enforceable under applicable law. 

        9.    Representations and Warranties.    Each Stockholder represents and warrants to the Company and each other
Stockholder that: 

        (a)   such
Stockholder has the power, authority and capacity (or, in the case of any Stockholder that is a corporation, limited liability company or limited partnership, all
corporate, limited liability company or limited partnership power and authority, as the case may be) to execute, deliver and perform this Agreement; 

        (b)   in
the case of a Stockholder that is a corporation, limited liability company or limited partnership, the execution, delivery and performance of this Agreement by such
Stockholder has been duly and validly authorized and approved by all necessary corporate, limited liability company or limited partnership action, as the case may be; 

        (c)   this
Agreement has been duly and validly executed and delivered by such Stockholder and constitutes a valid and legally binding obligation of such Stockholder,
enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to creditors' rights generally and general
principles of equity; and 

        (d)   the
execution, delivery and performance of this Agreement by such Stockholder does not and will not violate the terms of or result in the acceleration of any obligation
under (i) any material contract, commitment or other material instrument to which such Stockholder is a party or by which such Stockholder is bound or
(ii) in the case of a Stockholder that is a corporation, limited liability company or limited partnership, the certificate of incorporation, certificate
of formation, certificate of limited partnership, by-laws, limited liability company agreement or limited partnership agreement, as the case may be. 

        10.    Definitions.    For purposes of this Agreement, the following terms shall have the following respective
meanings: 

        Affiliate: a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, the Person specified. 

        Board: the board of directors of the Company. 

        Commission: the Securities and Exchange Commission. 

        Common Stock: the Common Stock of the Company, par value $.01 per share. 

        Exchange Act: the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations thereunder
which shall be in effect at the time. 

        IPO: the initial public offering of Common Stock. 

11

 

        Limited Liability Company Agreement: the Amended and Restated Limited Liability Company Agreement of Eagle Ventures LLC, dated as of
May 11, 2005, by and among the LLC, Kelso Investment Associates VII, L.P., KEP VI, LLC and the other parties named therein. 

        Majority Holders: the holders of at least 51% of the Registrable Securities that are participating in the registration at issue. 

        NASD: National Association of Securities Dealers, Inc. 

        NASDAQ: the Nasdaq National Market. 

        Person: an individual, corporation, partnership, limited liability company, joint venture, association, trust or other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof. 

        Registrable Securities: the shares of Common Stock beneficially owned (within the meaning of Rule 13d-3 of the Exchange
Act) by the LLC, the Management Stockholders, if any, the Outside Investors, if any, or the Permitted Transferees (as such term is defined in Section 11.2), except
for any shares of Common Stock beneficially owned or held by a Management Stockholder, if any, that (a) were issued to such
Management Stockholder pursuant to an effective registration statement under the Securities Act on Form S-8 or (b) may be sold by such Management Stockholder pursuant to
Rule 144(k) under the Securities Act. As to any particular shares of Common Stock, such securities shall cease to be Registrable Securities when
(i) a registration statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall
have been disposed of in accordance with such registration statement, (ii) a registration statement on Form S-8 with respect to the
sale of such securities shall have become effective under the
Securities Act and such securities have been disposed of pursuant thereto, (iii) they shall have been sold to the public pursuant to Rule 144
under the Securities Act, (iv) they shall have been otherwise transferred other than to a Permitted Transferee and subsequent disposition of them shall
not require registration or qualification of them under the Securities Act or any similar state law then in force or (v) they shall have ceased to be
outstanding. Any and all shares of Common Stock which may be issued in respect of, in exchange for, or in substitution for any Registrable Securities, whether by reason of any stock split, stock
dividend, reverse stock split, recapitalization, combination or otherwise, shall also be "Registrable Securities" hereunder. 

        Registration Expenses: all expenses incident to the Company's performance of or compliance with any registration pursuant to this
Agreement, including, without limitation, (i) registration, filing and NASD fees, (ii) fees and expenses
of complying with securities or blue sky laws, (iii) fees and expenses associated with listing securities on an exchange or NASDAQ,
(iv) word processing, duplicating and printing expenses, (v) messenger and delivery expenses,
(vi) transfer agents', trustees', depositories', registrars' and fiscal agents' fees, (vii) fees and
disbursements of counsel for the Company and of its independent public accountants, including the expenses of any special audits or "cold comfort" letters,
(viii) reasonable fees and disbursements of any one counsel retained by the sellers of Registrable Securities, which counsel shall be designated in the
manner specified in Section 3(c), and (ix) any fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but
excluding underwriting discounts and commissions and transfer taxes, if any. 

        Securities Act: the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder which
shall be in effect at the time. 

        11.    Miscellaneous.    

        11.1    Rule 144, etc.    If the Company shall have filed a registration statement pursuant to the requirements
of Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act relating to any class of equity securities, the Company shall file the 

12

 

reports
required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder, and shall take such further action as any holder of
Registrable Securities may reasonably request, all to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within
the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such rule may be amended from time to time, or
(b) any successor rule or regulation hereafter adopted by the Commission. Upon the request of any holder of Registrable Securities, the Company shall
deliver to such holder a written statement as to whether it has complied with such requirements. 

        11.2    Successors, Assigns and Transferees.    This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective permitted successors and assigns under this Section 11.2. The provisions of this Agreement which are for the benefit of a holder of Registrable Securities
shall be for the benefit of and enforceable by any transferee of such Registrable Securities; provided that such transferee acquires such Registrable
Securities in accordance with all of the terms of the Limited Liability Company Agreement and pursuant to an express assignment from the transferor; and  provided, further, that such transferee executes a joinder agreement agreeing to be bound by all of the
transferor's obligations hereunder, including, without limitation, Section 5 hereof, copies of which shall have been delivered to the Company (each such transferee, a
"Permitted Transferee"). Notwithstanding anything herein to the contrary, unless the LLC otherwise consents (such consent not to be unreasonably
withheld), the Management Stockholders, if any, must exercise all rights hereunder on behalf of any of their Permitted Transferees and all other parties hereto shall be entitled to deal exclusively
with the Management Stockholders, if any, and rely on the consent, waiver or any other action by the Management Stockholders, if any, as the consent, waiver or other action, as the case may be, of any
such Permitted Transferees of such Management Stockholders, if any. 

        11.3    Stock Splits, etc.    Each holder of Registrable Securities agrees that it will vote to effect a stock split,
reverse stock split, recapitalization or combination with respect to any Registrable Securities in connection with any registration of any Registrable Securities hereunder, or otherwise, if
(i) the managing underwriter shall advise the Company in writing (or, in connection with an offering that is not underwritten, if an investment banker
shall advise the Company in writing) that in its opinion such a stock split, reverse stock split, recapitalization or combination would facilitate or increase the likelihood of success of the
offering, and (ii) such stock split, reverse stock split, recapitalization or combination does not impact the respective ownership percentages of each
such holder of Registrable Securities in the Company. The Company shall cooperate in all respects in effecting any such stock split, reverse stock split, recapitalization or combination. 

        11.4    Amendment and Modification.    This Agreement may be amended, modified or supplemented by the Company with the
written consent of the LLC and a majority (by number of shares) of any other holders of Registrable Securities whose interests would be adversely affected by such amendment, modification or
supplement; provided that the interests of any existing holders of Registrable Securities shall not be adversely affected by an amendment, modification
or supplement of this Agreement that provides for or has the effect of providing for an additional grant of incidental registration rights with a lower or the same priority as the rights held by such
existing holders of Registrable Securities, as long as any such grant of incidental registration rights with the same priority are pari passu with those
held by such existing holders of Registrable Securities. 

13

   
        11.5    Management Stockholders.    Notwithstanding anything in this Agreement to the contrary, the Company may,
with
the consent of the LLC (and only the consent of the LLC), admit employees of the Company to this Agreement and designate such Stockholders as "Management Stockholders" for all purposes of this
Agreement, provided that any such Management Stockholder executes and delivers a joinder agreement to this Agreement and such other agreements or documents as may reasonably be requested by the
Company. 

        11.6    Outside Investors.    Notwithstanding anything in this Agreement to the contrary, the Company may, with the
consent of the LLC (and only the consent of the LLC), admit one or more Persons to this Agreement and designate such Person as an "Outside Investor" for all purposes of this Agreement, provided that
any such Outside Investor executes and delivers a joinder agreement to this Agreement and such other agreements or documents as may reasonably be requested by the Company. 

        11.7    Governing Law.    This Agreement and the rights and obligations of the parties hereunder and the Persons
subject hereto shall be governed by, and construed and interpreted in accordance with, the law of the State of Delaware, without giving effect to the choice of law principles thereof. 

        11.8    Invalidity of Provision.    The invalidity or unenforceability of any provision of this Agreement in any
jurisdiction shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that provision, in
any other jurisdiction. 

        11.9    Notices.    All notices, requests, demands, letters, waivers and other communications required or permitted to
be given under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered personally,
(b) mailed, certified or registered mail with postage prepaid, (c) sent by next-day or
overnight mail or delivery or (d) sent by fax, as follows: 

	(i)
	If
to the Company, to:

	

	Eagle
Bulk Shipping Inc.

29 Broadway

New York, New York 10006

Fax:

Attention: Secretary

	

	with
a copy to the LLC at its address set forth in (ii) below.

	(ii)
	If
to the LLC, to it at:

	

	c/o
Kelso & Company

320 Park Avenue, 24th Floor

New York, New York 10022

Fax: 212-223-2379

Attention: General Counsel

	

	with
a copy to:

	

	Skadden,
Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Telephone: (212) 735-3000

Facsimile: (212) 735-2000

Attention: Lou Kling, Esq. 

or
to such other Person or address as any party shall specify by notice in writing to the Company. All such notices, requests, demands, letters, waivers and other communications shall be deemed to
have been received (w) if by personal delivery on the day after such delivery, (x) if by certified or
registered 

14

 

mail,
on the fifth business day after the mailing thereof, (y) if by next-day or overnight mail or delivery, on the day delivered, or
(z) if by fax, on the day delivered, provided that such delivery is confirmed. 

        11.10    Headings; Execution in Counterparts.    The headings and captions contained herein are for convenience and
shall not control or affect the meaning or construction of any provision hereof. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and which
together shall constitute one and the same instrument. 

        11.11    Injunctive Relief.    Each of the parties recognizes and agrees that money damages may be insufficient and,
therefore, in the event of a breach of any provision of this Agreement the aggrieved party may elect to institute and prosecute proceedings in any court of competent jurisdiction to enforce specific
performance or to enjoin the continuing breach of this Agreement. Such remedies shall, however, be cumulative and not exclusive, and shall be in addition to any other remedy which such party may have. 

        11.12    Term.    This Agreement shall be effective as of the date hereof and shall continue in effect thereafter
until the earlier of (a) its termination by the consent of the parties hereto or their respective successors in interest and
(b) the date on which no Registrable Securities remain outstanding. 

        11.13    Further Assurances.    Subject to the specific terms of this Agreement, each of the Company and the
Stockholders shall make, execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of
this Agreement and to consummate the transactions contemplated hereby. 

        11.14    Entire Agreement.    This Agreement, the Limited Liability Company Agreement and any agreements entered into
in connection with any of the foregoing constitute the entire agreement and the understanding of the parties hereto with the matters referred to herein. This Agreement and the agreements referred to
in the preceding sentence supersede all prior agreements and understandings between the parties with respect to such matters. 

        IN
WITNESS WHEREOF this Agreement has been signed by each of the parties hereto, and shall be effective as of the date first above written. 

	 	 	EAGLE BULK SHIPPING INC.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Name:

Title:
	 	 	 	 	 
	 	 	EAGLE VENTURES LLC
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Name:

Title:

15

REGISTRATION RIGHTS AGREEMENT  

 EAGLE BULK SHIPPING INC.  

 Dated as of June     , 2005

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	 
	 	Page

	1.	 	Registrations Upon Request	 	1
	 	 	1.1	 	Requests by the LLC	 	1
	 	 	1.2	 	Registration Statement Form	 	2
	 	 	1.3	 	Expenses	 	2
	 	 	1.4	 	Priority in Demand Registrations	 	2
	

2.	
 	
Incidental Registrations	
 	

2
	

3.	
 	
Registration Procedures	
 	

3
	

4.	
 	
Underwritten Offerings	
 	

6
	 	 	4.1	 	Underwriting Agreement	 	6
	 	 	4.2	 	Selection of Underwriters	 	7
	

5.	
 	
Holdback Agreements	
 	

7
	

6.	
 	
Preparation; Reasonable Investigation	
 	

8
	

7.	
 	
No Grant of Future Registration Rights	
 	

8
	

8.	
 	
Indemnification	
 	

8
	 	 	8.1	 	Indemnification by the Company	 	8
	 	 	8.2	 	Indemnification by the Sellers	 	9
	 	 	8.3	 	Notices of Claims, etc.	 	9
	 	 	8.4	 	Other Indemnification	 	10
	 	 	8.5	 	Indemnification Payments	 	10
	 	 	8.6	 	Other Remedies	 	10
	

9.	
 	
Representations and Warranties	
 	

11
	

10.	
 	
Definitions	
 	

11
	

11.	
 	
Miscellaneous	
 	

12
	 	 	11.1	 	Rule 144, etc.	 	12
	 	 	11.2	 	Successors, Assigns and Transferees	 	13
	 	 	11.3	 	Stock Splits, etc.	 	13
	 	 	11.4	 	Amendment and Modification	 	13
	 	 	11.5	 	Management Stockholders	 	14
	 	 	11.6	 	Outside Investors	 	14
	 	 	11.7	 	Governing Law	 	14
	 	 	11.8	 	Invalidity of Provision	 	14
	 	 	11.9	 	Notices	 	14
	 	 	11.10	 	Headings; Execution in Counterparts	 	15
	 	 	11.11	 	Injunctive Relief	 	15
	 	 	11.12	 	Term	 	15
	 	 	11.13	 	Further Assurances	 	15
	 	 	11.14	 	Entire Agreement	 	15

i

QuickLinks

TABLE OF CONTENTSExhibit 10.2

 

[Ship
owning entity]

 

and

 

 

V SHIPS MANAGEMENT LTD.

 

 

SHIP MANAGEMENT AGREEMENT

 

1

 

MANAGEMENT AGREEMENT

 

INDEX

 

	
  PART

  	
   

  	
  SUBJECT MATTER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Part i

  	
   

  	
  Vessel Details

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Part ii

  	
   

  	
  Terms of Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Definitions &
  Interpretation

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  Appointment of Managers

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  Basic
  Services

  	
   

  	
   

  
	
   

  	
   

  	
  3.1

  	
  Crewing

  	
   

  	
   

  
	
   

  	
   

  	
  3.2

  	
  Technical
  Management

  	
   

  	
   

  
	
   

  	
   

  	
  3.3

  	
  Purchasing

  	
   

  	
   

  
	
   

  	
   

  	
  3.4

  	
  Insurance

  	
   

  	
   

  
	
   

  	
   

  	
  3.5

  	
  Accounting and Budgeting

  	
   

  	
   

  
	
   

  	
   

  	
  3.6

  	
  Operations

  	
   

  	
   

  
	
   

  	
   

  	
  3.7

  	
  Information System
  Software

  	
   

  	
   

  
	
   

  	
   

  	
  3.8

  	
  Shipboard
  Oil Pollution Emergency Plan

  	
   

  	
   

  
	
   

  	
   

  	
  3.9

  	
  OPA

  	
   

  	
   

  
	
   

  	
   

  	
  3.10

  	
  Assistance with Sale of
  Vessel

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
  Other
  Services

  	
   

  	
   

  
	
   

  	
   

  	
  5.

  	
  Manager’s Obligations

  	
   

  	
   

  
	
   

  	
   

  	
  6.

  	
  Owner’s Obligations

  	
   

  	
   

  
	
   

  	
   

  	
  7.

  	
  Management
  Fee

  	
   

  	
   

  
	
   

  	
   

  	
  8.

  	
  Payments and
  Management of Funds

  	
   

  	
   

  
	
   

  	
   

  	
  9.

  	
  Manager’s Right to
  Sub-Contract

  	
   

  	
   

  
	
   

  	
   

  	
  10.

  	
  Responsibilities

  	
   

  	
   

  
	
   

  	
   

  	
  10.1

  	
  Force
  Majeure

  	
   

  	
   

  
	
   

  	
   

  	
  10.2

  	
  Liability to Owners

  	
   

  	
   

  
	
   

  	
   

  	
  10.3

  	
  Indemnity – General

  	
   

  	
   

  
	
   

  	
   

  	
  10.4

  	
  Indemnity
  – Tax

  	
   

  	
   

  
	
   

  	
   

  	
  10.5

  	
  Himalaya

  	
   

  	
   

  
	
   

  	
   

  	
  11.

  	
  Prosecution
  of Claims/Disputes other than Insurance

  	
   

  	
   

  
	
   

  	
   

  	
  12.

  	
  Auditing,
  Records

  	
   

  	
   

  
	
   

  	
   

  	
  13.

  	
  Inspection of Vessel

  	
   

  	
   

  
	
   

  	
   

  	
  14.

  	
  Compliance
  with Laws & Regulations

  	
   

  	
   

  
	
   

  	
   

  	
  15.

  	
  Duration of the Agreement

  	
   

  	
   

  
	
   

  	
   

  	
  15.1

  	
  Termination by Notice

  	
   

  	
   

  
	
   

  	
   

  	
  15.2

  	
  Termination by
  Default – Owners

  	
   

  	
   

  
	
   

  	
   

  	
  15.3

  	
  Termination by
  Default – Managers

  	
   

  	
   

  
	
   

  	
   

  	
  15.4

  	
  Liquidation

  	
   

  	
   

  
	
   

  	
   

  	
  15.5

  	
  Extraordinary
  Termination

  	
   

  	
   

  
	
   

  	
   

  	
  16.

  	
  Confidentiality

  	
   

  	
   

  
	
   

  	
   

  	
  17.

  	
  Third Party Rights

  	
   

  	
   

  
	
   

  	
   

  	
  18.

  	
  Law and Arbitration

  	
   

  	
   

  

 

2

 

	
   

  	
   

  	
  19.

  	
  Amendments to Agreement

  	
   

  	
   

  
	
   

  	
   

  	
  20.

  	
  Time Limit for Claims

  	
   

  	
   

  
	
   

  	
   

  	
  21.

  	
  Condition of Vessel

  	
   

  	
   

  
	
   

  	
   

  	
  22.

  	
  Use of Associated
  Companies

  	
   

  	
   

  
	
   

  	
   

  	
  23.

  	
  Notices

  	
   

  	
   

  
	
   

  	
   

  	
  24.

  	
  Staff
  Loyalty

  	
   

  	
   

  
	
   

  	
   

  	
  25.

  	
  Entire
  Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Part iii

  	
   

  	
  Other Services

  	
   

  	
   

  
	
  Part iv

  	
   

  	
  Fee Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Part v

  	
   

  	
  Fleet Details

  	
   

  	
   

  
	
  Part vi

  	
   

  	
  Initial Budget

  	
   

  	
   

  
	
  Part vii

  	
   

  	
  Special
  Running Expenses

  	
   

  	
   

  

 

3

 

SHIP MANAGEMENT AGREEMENT
- PART I

 

1.   Vessel Details

 

	
  Name:

  	
   

  	
  [Name]

  	
   

  	
  GT/NT:

  	
   

  
	
  Flag:

  	
   

  	
  Marshall
  Islands

  	
   

  	
  Class
  :

  	
   

  
	
  Type:

  	
   

  	
  Bulk
  Carrier

  	
   

  	
  Year
  Built:

  	
   

  
							

 

2.   Owners

 

	
  Name:   [Ship owning entity]

  
	
  Registered
  Office:

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

  
	
  Country
  of Incorporation: Marshall Islands

  
	
  Principal
  Place of Business: 29 Broadway, Suite 1610, New York, NY 10006. USA

  
	
   

  
	
  Telephone
  Number: (212) 785-2500

  	
  Fax
  Number: (212) 785-3311

  
	
  Contact
  Name: Sophocles Zoullas

  	
  Position: CEO

  
			

 

3.   Managers

 

Name: V Ships Management Ltd.

Registered Office: 
Eaglehurst,
Belmont Hill, Douglas, Isle of Man.

Country of Incorporation: Isle of Man

 

	
  Telephone
  Number: 

  	
  Fax
  Number:  

  
	
  Contact
  Name: 

  	
  Position:
  

  

 

4.   Date of Commencement of Agreement (Clause 2.1) 

 

	
  5.   Notices to Owners:

  	
  at
  the address and fax numbers stated in Box 2

  

 

	
  6.   Notices to Managers:

  	
  at the address and fax
  numbers stated in Box 2 with a copy to Marine Legal Services Limited, Gate
  House, 1 Farringdon Street, London EC4M 7NS tel (44) (0) 20 7329 2422 fax
  (44) (0) 20 7236 2894

  

 

It
is mutually agreed between the party mentioned in Box 2 of Part I (hereinafter
called “the Owners”) and the party mentioned in Box 3 of Part I (hereinafter
called “the Managers”) that this Agreement consisting of PARTS I to VI
inclusive shall be performed subject to the conditions contained herein. In the
event of a conflict of conditions, the provisions of an applicable Appendix of
Part III shall prevail over the provisions of PART II to the extent of such
conflict but only in respect of the Management Service to be provided in terms
of such applicable Appendix. In the event of a conflict between the Fee
Schedule and the provisions of an applicable Appendix of Part III, the
provisions of the Fee Schedule shall prevail.

 

 

	
  Signature(s)
  (Owners)

  	
  Signature(s)
  (Managers)

  
	
   

  	
   

  
	
  [Ship owning entity]

  	
  /s/ 

  	
   

  
	
  By:

  	
  Eagle
  Bulk Shipping Inc.

  	
   

  
	
   

  	
  its
  sole member

  	
  Title: 

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
					

 

4

 

SHIP MANAGEMENT AGREEMENT
- PART II

 

1.             Definitions and
Interpretation

 

1.1           In this Agreement, in addition to terms
defined in Part I, save where the context otherwise requires, the following
words and expressions shall have the meanings hereby assigned to them.

 

“Basic
Services” means services
relating to Crewing, Technical Management, Purchasing, Insurance, Accounting
and Budgeting, Operations, Managers’ Information System Software, Shipboard Oil
Pollution Emergency Plan, OPA and Assistance with Sale provided in accordance
with Clause 3.

 

“Crew
Support Costs” means all expenses
of a general nature not particularly referable to any individual vessel for the
time being managed by the Managers and incurred for the purpose of providing an
efficient supply of officers and ratings, including training schemes for
officers and ratings, cadet training schemes, study pay, recruitment and
interviews.

 

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

 

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

 

“Information
System Software” means the Managers’
proprietary
ship management software in executable object code form as described in Clause
3.7 I as the same may be upgraded and updated from time to time.

 

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

 

“ISPS Code” means the International Ship and Port Facility Security
Code as adopted on 12 December 2002 by resolution 2 of the Conference of
Contracting Governments to the International Convention for the Safety of Life
at Sea 1974.

 

“Management
Services” means Basic
Services and Other Services.

 

“OPA” means the United
States Oil Pollution Act of 1990, regulations made thereunder, and any
subsequent amendment thereto.

 

“Other
Services” means any Services
provided by Managers except Basic Services, and includes, but is not limited to
any of the functions affirmatively indicated in Boxes 1 to 8 of the Fee Schedule.

 

“Severance
Costs” means the costs
which are required in law to be paid to the Crew as a result of the early
termination of contracts for service on board the Vessel.

 

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

 

“SSP” means a Ship Security Plan in accordance with the
ISPS Code.

 

“STCW” means the
International Maritime Organisation Convention on Standards of Training
Certification and Watchkeeping for Seafarers 1978 and as subsequently amended.

 

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

 

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

 

2.             Appointment of Managers

 

2.1           With effect from the date stated in Box 4 of
Part I (the “Date of Commencement”) and continuing unless and until terminated as
provided herein, the Owners hereby appoint the Managers and the Managers hereby
agree to act as the Managers of the Vessel.

 

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

 

3.             Basic Services

 

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

 

3.1           Crewing

 

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

 

(i)            selecting and
engaging Master, officers and crew (hereinafter collectively referred to as the
“Crew”); where the Owners make a complaint about any member of the Crew the
Managers will promptly investigate the same and, replace the Crew member
concerned as soon as practicable;

 

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

 

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

 

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

 

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

 

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

 

(vii)         conducting union negotiations and making
agreed payments to unions;

 

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

 

(ix)           arranging Crew training in accordance with
the Managers’ policies but always in compliance with STCW, records of such
training being maintained in the Manager’s standard format.

 

5

 

3.1.2        Crew Claims

 

The Managers will prepare and process all Crew
insurance claims.

 

*The final claim will be passed to the Owners for
presentation to Owners’ P & I Club.

 

*The final claim will be presented by-the Managers
direct to Owners’ P & I Club.

(*delete as appropriate)

 

Technical
Management

 

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

 

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

 

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

 

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

 

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

 

(v)           visits to the Vessel by superintendents
(other than cargo superintendents pursuant to Appendix 7) or other staff of the
Managers for up to 24 days in any calendar year (or pro  rata for
part of a calendar year) for vessels under 15 years of age and 30 days in
any calendar year for vessels over 15 years of age

 

(vi)          notifying the Owners of any extraordinary
and/or non budgeted expenditure in excess of US$ 5,000; and

 

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

 

3.3           Purchasing

 

3.3.1        The Managers shall arrange for the supply of
necessary victualling, stores, spares, provisions, lubricating oils and services
for the Vessel. To enable the Managers to arrange such supplies on the most
advantageous terms, the Managers shall be entitled to join with other parties
in making arrangements for bulk purchase. The Managers are presently members of
Marine Contracting Association Limited (“MARCAS”), a company established to
negotiate on behalf of its members prices, terms and conditions regulating the
bulk purchasing of goods and services for the marine industry.

 

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

 

3.3.3        The Owners have received details from the
Managers of the business rules and operating procedures adopted by MARCAS, and
agree to comply with such rules and operating procedures as the same may be
amended from time to time.

 

3.3.4        Details of the suppliers contracted by
MARCAS and prices available from such suppliers will be available to Owners. Owners
acknowledge that all information relating to prices is confidential and
undertake not to disclose the same to third parties without the prior written
consent of the Managers.

 

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

 

3.3.6        MARCAS will where practicable obtain a best
price charter from suppliers that the prices for all Goods and services
purchased by MARCAS’s members will be the lowest prices available. If the
Owners are able to obtain in good faith, on arms’ length terms, on a true like
for like basis (including quality, certification, timing, manufacturer, place
of supply, etc, but ignoring taxes and exchange rate fluctuations), the same
Goods and/or services at a lower price than that obtained by MARCAS, the Owners
will supply full details to the Managers who will promptly raise the matter
with MARCAS and pass on to Owners any refund obtained by MARCAS from the
supplier.

 

3.3.7        The Owners acknowledge that they are aware
that in the event of the activities of MARCAS (or any other company or association
or consortium of which the Managers may from time to time be members)
generating a surplus, such surplus may be distributed among and retained by its
members, including the Managers.

 

[*Alternative 3.3 - If MARCAS not utilised
for purchasing.

 

3.3           Purchasing

 

3.3.1        The Managers shall
arrange for the supply of necessary victualling, stores, spares, provisions,
lubricating oils and services- for the Vessel.

 

3.3.2        If the-Managers
(or their parent, subsidiary or associated companies), as the result of
arranging the bulk/volume purchase of goods and services for all or any part or
parts of the fleet of vessels managed by them, receive additional year end
override discounts or commissions related to the total annual purchases made by
them, the Managers-shall be under no obligation to account for the same to the
Owners. Details of contracts made with suppliers in terms of which the Managers
are entitled to such override discounts or commissions will be made available
to the Owners on request.

 

3.3.3        The Owners hereby consent to the arrangements set
out in Clause 3.3.2.]

 

3.4           Insurance

 

3.4.1        If instructed by the Owners, the Managers
shall arrange such insurances as agreed with the Owners in accordance with the following
provisions.

 

3.4.2        The Managers shall arrange such insurances
as the Owners shall have instructed or agreed, in particular as regards values,
deductibles and franchises. At each renewal the Managers will:

 

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

 

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

 

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

 

For the avoidance of doubt under no circumstances
will the Managers be liable to the Owners for any losses which the Owners may
incur as a result of the level of insured values.

 

3.4.3        The Managers shall engage the services of
their appointed insurance brokers to assist them in arranging such insurances.

 

3.4.4        The Managers shall compile such statistics
and enter into negotiations with such underwriters and P & I Clubs as they

 

6

 

consider necessary
or desirable in order to arrange such insurances.

 

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

 

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

 

3.4.7        If instructed, by the Owners, the Managers
shall handle and or procure the settling of all insurance average and salvage
claims in connection with the Vessel.

 

3.4.8        The Managers shall be entitled to receive
additional remuneration for time spent on the insurance, average and salvage
claims (charged at the rate of US$650 per man per day of 8 hours in respect of
the preparation and prosecution of claims, the supervision of repairs and the
provision of documentation relating to adjustments).

 

3.5           Accounting and Budgeting

 

3.5.1        The Managers shall:

 

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

 

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

 

3.5.2        The Managers shall present to the Owners
annually a budget for the following twelve months in the Managers’ standard format
or such other form as may be mutually agreed in writing. The budget for the
period following the date stated in Box 4 of Part I is set out in Part VI.
Subsequent annual budgets shall be prepared by the Managers and submitted to the
Owners in each year in respect of the following year.

 

3.5.3        The Owners shall indicate to the Managers
their acceptance and approval of the annual budget within 30 days of
presentation and in the absence of such acceptance the Managers shall be entitled
to assume that the Owners have accepted the said budget. Following the
agreement of the budget, the Managers shall prepare and present to the Owners
their estimate of the working capital requirement of the Vessel.

 

3.5.4        The Managers shall produce a monthly
comparison between budgeted and actual expenditure of the Vessel in the
Managers’ standard format or such other form as may be mutually agreed in
writing. In addition the Managers shall provide a narrative report on such
comparisons on a quarterly basis.

 

Operations

 

3.6           As required by the Owners, the Managers
shall, as agents for the Owners, provide the following functions:-

 

(i)      monitoring voyage instructions and liaising
as appropriate with the Owners, the Owners’ brokers and charterers;

 

(ii)     appointment of agents;

 

(iii)    appointment of stevedores;

 

(iv)    arrangement of surveying of cargoes.

 

3.7           Information System Software

 

3.7.1        The Managers will, subject to the remaining
provisions of this Clause 3.7, provide the Owners and the Vessel with the
Information System Software to allow information from both the Vessel’s and the
Managers’ office to be accessed directly by the Owners via the “Partnership
Network” secure website.

 

Financial, technical and operational information
relating to the Vessel will be available from both the Vessel and office
outputs, with the ability to “drill down” on accounts. This will provide the
Owners with immediate access to the same information available to the Managers
and to reports generated for the Owners, with a view to providing improved
efficiency and cost savings to the Owners in his overview of the management of
the Vessel.

 

3.7.2        Should the Owners have existing software
applications on board the Vessel which they wish to retain, the Owners will permit
the Managers to carry out an on board audit to assess the suitability,
compatibility with the Information System Software, and any risks or
disadvantages associated with the continued use of such applications.

 

3.7.3        The main features of the Information System
Software at the date of this Agreement are:

 

(i)         comprehensive management software providing
single point of entry to the Vessel incorporating crew administration and
payroll, vessel noon reporting, operational and port reporting, defect and
deficiency reporting and performance monitoring;

 

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

 

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

 

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

 

(i)         the licence fee;

 

(ii)        remote access from the Owners’ Office
through the Managers’ Partnership network;

 

(iii)       maintenance, updates and upgrades;

 

(iv)       24 hour support;

 

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

 

(vi)       operational manuals on CD ROM and regular
updates;

 

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

 

(viii)     user manuals and training of the Crew in the
use of the Information System Software; and

 

(ix)       e-mail on board the Vessel with itemized
billing for Owners and charterers.

 

3.7.5        Such costs do not include:

 

(i)         the costs of appropriate hardware on board
the Vessel and in the Owners’
office;

 

(ii)        travel and other related costs for
installation and set-up of the Information System Software on board the Vessel
and in the Owners’ office;

 

(iii)       travel costs to and from the Vessel in
connection with the annual audit;

 

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

 

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

 

3.7.6        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.

 

3.7.7        Solely for the duration of this Agreement
the Managers hereby grant the Owners a personal, non-transferable non-exclusive
licence to use a single copy of the Information System Software as installed by
the Managers on a single computer on board each Vessel of the fleet. and a single computer in the Owners’
office.

 

3.7.8        The Information System Software is owned by
the Managers or its subsidiaries ana is protected by applicable copyright and
patent laws. The Owners may not copy the Information System

 

7

 

Software (except for back-up purposes only) or any
written materials which accompany it, and may not sell, rent, lease, lend, sub-license,
reverse engineer or distribute the Information System Software or such written
materials.

 

3.7.9        The
Managers do not warrant that the Information System Software will meet the
Owners’ requirements or that the use or operation of the Information System
Software will be uninterrupted or error free.

 

3.8           Shipboard Oil Pollution
Emergency Plan

 

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

 

3.8.2        The SOPEP will be written in the English
language and will be reviewed and updated from time to time. If required the Managers
will arrange for the translation of the SOPEP into another language, the cost
of translation being recoverable in terms of Clause 7.4.

 

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

 

3.9           OPA

 

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

 

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

 

(ii)        identify and ensure the availability by
contract or otherwise of a Qualified Individual, a Spill Management Team, an
Oil Spill Removal Organisation, resources having salvage, firefighting,
lightering and, if applicable, dispersant capabilities, and public
relations/media personnel to assist the Owners to deal with the media in the
event of discharges of oil.

 

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

 

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

 

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

 

Assistance with Sale of Vessel

 

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

 

4.             Other Services

 

4.1           Subject to the terms and conditions herein
provided, during the period of this Agreement the Managers shall carry out, as
agents for and on behalf of the Owners, such Other Services as shall have been
indicated in Boxes 1 to 7 of the Fee Schedule.

 

4.2           Other Services shall be provided in
accordance with the terms of the Appendices contained in Part III.

 

5.             Managers’ Obligations

 

5.1           The Managers undertake to use all reasonable
endeavors to provide the Basic Services and the Other Services to be provided
in accordance with Clauses 3 and 4 as agents for and on behalf of the Owners in
accordance with sound ship management practice and to protect and promote the
interests of the Owners in all matters relating to the provision of Management
Services

 

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

 

5.2           Where the Managers are providing technical
management in accordance with Clause 3.2,
they shall be deemed to be “the Company” as defined by the ISM Code,
assuming the responsibility for the operation of the Vessel and taking over the
duties and responsibilities imposed by the ISM Code and by the ISPS Code.

 

6.             Owners’ Obligations

 

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

 

6.2           Where the Managers are not providing
technical management in accordance with Clause 3.2, the Owners, or such third
party as may be appointed by them and identified to the Managers, shall be
deemed to be “the Company” as defined by the ISM Code, assuming the
responsibility for the operation of the Vessel and taking over the duties and
responsibilities imposed by the ISM Code and by the ISPS Code.

 

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

 

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

 

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

 

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

 

in accordance with
the best practice of prudent owners of vessels of a similar type to the Vessel,
with first class insurance companies underwriters or associations (“the Owners’
Insurances”).

 

6.4           The Owners shall procure that Owners’
Insurances name the Managers and any additional party designated by the
Managers as a joint assured for protection and indemnity risks (including pollution
risks) and a named assured on all other policies, with the benefit of full
cover and full waiver of subrogation. The Owners shall obtain cover in respect
of each of the insurances specified in Clause 6.3 above (if reasonably
obtainable) on terms whereby the Managers and any such third party are not liable
in respect of premiums or calls arising in connection with the Owners’
Insurances and the Owners shall, if applicable, provide the Managers with
written evidence thereof within 30 days of the Date of Commencement and/or the
date on which the Managers notify the Owners of the appointment of any additional
party and within 30 days of each renewal date.

 

6.5           As between the Owners and the Managers, the
Managers shall not be responsible for paying any premiums or calls arising in connection
with such insurances. On termination of this

 

8

 

Agreement
(howsoever occasioned) or where the Owners make a change in the P & I Club
in which the Vessel is entered, the Owners shall, unless the Managers otherwise
agree, pay such release call as is required by the P & I Club in which the
Vessel was entered. For the avoidance of doubt, it is agreed that the Owners
shall be liable for all deductibles applying to any insurance policy.

 

6.6           The Owners will deliver to the Managers
copies of the Vessel’s Certificate of Registry and copies of all her trading
and classification certificates. In addition, in the case of a new Vessel, the
Owners will deliver a copy of the Building Contract and specification, and in
the case of a second hand vessel, a copy of the Memorandum of Agreement in
terms of which the Owners acquired the Vessel. The Owners shall be entitled to delete
any confidential information (such as price) from the Building Contract or
Memorandum of Agreement.

 

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

 

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

 

6.9           The Owners shall be obliged to obtain the
SCAC code and International Carrier Bond as required in order to access the US Bureau
of Customs and Border Protection automated manifest system, as required by 68
Fed Reg 68139 and as amended.

 

6.10        Data Protection

 

6.10.1      In respect of any Personal Data supplied to
the Owners, the Owners warrant:

 

(i)         that they are legally entitled to process
the Personal Data and will do so only on behalf of the Managers and in
compliance with their instructions and will take all appropriate technical and
organizational security measures to protect the Personal Data against destruction,
loss, alteration, unauthorized disclosure or access and against all other
unlawful forms of processing;

 

(ii)        to notify the Managers promptly of (a) any
legally binding request for disclosure of the Personal Data by a law
enforcement authority unless otherwise prohibited; (b) any accidental or
unauthorized access in respect of the Personal Data; (c) any request from a
Data Subject for access to his Personal Data, without responding to that
request, unless it has been otherwise authorized to do so; and (d) any reason
why they are unable to comply with clause 6.9.1(i), in which case the Managers
are entitled to suspend the transfer of data; (iii) to destroy promptly all
Personal Data transferred and certify to the Managers that they have done so (a)
if the Data Subject is not offered or does not accept employment on the Vessel
and (b) on termination of this Agreement.

 

6.10.2      “Personal Data” means any information or
data relating to an identified or identifiable living individual (“Data Subject”)
who can be identified from that information or data or from that information or
data and other information or data which is in the possession of or likely to
come into the possession of the Managers.

 

“Processing” of Personal Data means obtaining,
recording or holding Personal Data or carrying out any operation or set of
operations on the Personal Data, including its organization, adaptation or
alteration; its retrieval, consultation or use; its disclosure by transmission,
dissemination or by being otherwise made available; or its alignment,
combination, blocking, erasure or destruction.

 

7.             Management Fee

 

7.1           The Owners shall pay to the Managers a fee
in the amount stated in the Fee Schedule in respect of Basic Services which shall
be payable by equal monthly installments in advance, the first installment
being payable one month before the Vessel is handed over to the Managers and
subsequent installments being payable monthly in advance.

 

7.2           If the Managers ‘ superintendents or other
staff spend more than 24 days visiting the Vessel in any calendar year (or pro
rata for part of a calendar year) visits in excess of 24 days shall be
charged at the rate of US$ 650 per day.

 

7.3           Where Other Services are provided, the
Owners shall pay to the Managers fees therefor at the rates and times specified
in the applicable Appendix or Appendices of Part III and/or the Fee Schedule.

 

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

 

7.5           In the event of the termination of this
Agreement appointment of
the Managers being terminated the fees payable to the Managers according
to the provisions of Clauses 7.1, 7.2 and 7.3 shall, save as after mentioned,
be paid for a further period of three calendar months from the date of
termination (or in the case of Other Services such longer period (if any) as is
provided in the applicable Appendices) to compensate the Managers for the
ongoing work which the Managers will have to continue to perform
notwithstanding such termination. The only occasion on which the foregoing
provision will not apply is where the Agreement is properly terminated by the
Owners in terms of Clause 15.3 as a result of the Managers’ default. The Owners
shall also pay on demand Severance Costs together with repatriation costs and
expenses.

 

7.6           Where fees payable
to the managers will be adjusted annually by reference to the UK retail price
index. In addition-w Where Management Services are wholly or partly
provided by third parties, the fees therefor shall be adjusted immediately to
take account of increases in the cost of such services. The Managers will,
however, use all reasonable endeavors in negotiations with such third parties
to minimize such increases. The fees will be increased automatically by [* ]
for each seafarer requested by the Owners in addition to the complement as at
the Date of Commencement.

 

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

 

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

 

7.9           If as a result of collision, accident,
emergency, or any other extraordinary circumstances, the Managers’ workload is increased
beyond that which the parties could reasonably have anticipated, the Managers
shall be entitled to reasonable additional remuneration having regard to the
nature of the incident collision
etc,
the personnel and resources of the Managers deployed, and all other relevant
circumstances including insurance recoveries.

 

7.10         On or prior to the Date of Commencement the
Owners shall provide to the Managers a sum equivalent to one twelfth of the annual
budget from time to time which shall be available to the 

 

9

 

Managers in their sole discretion for payment of
any sum due under the terms of this Agreement (“the Float”). At the end of each
calendar month the Managers shall notify the Owners in the event that they have
utilized the Float, specifying the amount by which the Float has been reduced
and requesting payment of such sum as may be necessary to maintain the Float.
The Owners undertake to pay forthwith on request of the Managers such sum as
may be necessary to ensure that the Float remains equivalent to one twelfth of
the annual budget from time to time. The Owners agree that on termination of
this Agreement the Managers shall be entitled to retain all or part of the
Float in payment of any sums then outstanding under the terms of this Agreement
and, subject thereto, the Managers shall reimburse the Float to the Owners.

 

8.             Payments and Management of
Funds

 

8.1           All sums paid to the Managers by or on
behalf of the Owners and all moneys collected by the Managers under the terms
of this Agreement (other than fees payable by the Owners to the Managers and
the float referred to in Clause 8.4) shall be held to the credit of the Owners
in a separate interest bearing bank account or accounts, which shall be
operated by the Managers in trust for the Owners.

 

8.2           Where any sums howsoever arising and whether
in respect of fees, budgeted expenditure, non-budgeted expenditure, other liabilities
(present, future, liquidated or unliquidated) or expenses are owed to the
Managers in connection with the Fleet the Managers shall be entitled but not
obliged at any time or times to apply any sums standing to the credit of the accounts
referred to in Clause 8.1 to settle such sums.

 

8.3           The Managers shall each month request (by
letter, telex, fax or e-mail) from the Owners the funds required to run the
Vessel for the ensuing month. Such request will be for the total of the
anticipated monthly expenditure, including, without prejudice to the generality
of the foregoing, any sums due to be paid to suppliers and other third parties
in the ensuing month (as conclusively evidenced, in the absence of manifest error,
by an accounts payable listing produced by the Managers). In addition, the
Owners shall provide the Managers upon request with any funds which the
Managers may request to cover any unexpected, occasional or extraordinary item
of expenditure. All such funds shall be received by the Managers within ten
(10) days after the receipt of such requests and shall be held to the credit of
the Owners in the account(s) referred to in Clause 8.1. The Managers shall be
entitled to allocate such funds in such manner as the Managers determine, and
it shall not be open to the Owners to direct the Managers otherwise and under
no circumstances shall any funds received be held on trust by the Managers for any
specific purpose.

 

8.4           Notwithstanding anything contained herein,
the Managers shall in no circumstances be required to use or commit their own funds
to finance the provision of the Management Services and all payments due shall
be made punctually to the Managers (and not any third party) in accordance with
the terms of this Agreement in full without any deduction whatsoever. To cover travel
and other incidental and out of pocket expenses, the Owners will provide the
Managers with a float of US$5,000, which sum will be held in the Managers’ bank
account.

 

8.5           Where the Owners delay settling fees due to
the Managers the Owners shall pay interest thereon from the due date until the date
of payment at 3% per cent over one month LIBOR.

 

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

 

9.             Managers’ Right to
Sub-Contract

 

9.1           The Managers shall be entitled to procure
performance of the Managers’ obligations hereunder by their parent, subsidiary
or associated companies or (in the case of Other Services) third parties
(hereinafter collectively called the “Sub-Managers”) in accordance with the
following provisions of this Clause 9.1:-

 

(i)         any such performance of all or any of the
Managers’ obligations by the Sub-Managers shall be and constitute full and
sufficient performance by the Managers of their obligations hereunder;

 

(ii)        the Owners hereby agree with the Managers
that insofar as the Sub-Managers perform the obligations of the Managers the
Sub-Managers shall be entitled to the benefits of the provisions of Clause 10;
and

 

(iii)       any performance of the Managers’ obligations
by the Sub-Managers shall be without prejudice to the rights of the Owners
hereunder for any failure by the Managers in performance of the Managers’
duties and obligations hereunder and notwithstanding performance by the
Sub-Managers the Managers shall remain solely responsible to the Owners for
performance of their obligations hereunder.

 

9.2           The provisions of Clause 9.1 shall remain in
force notwithstanding termination of this Agreement.

 

10.           Responsibilities

 

10.1         Force Majeure

 

Neither the Owners nor the Managers shall be under
any liability for any failure to perform any of their obligations hereunder by
reason of any cause whatsoever of any nature or kind beyond their reasonable
control.

 

10.2         Liability to Owners

 

(i)         Without prejudice to Clause 10.1, the
Managers shall be under no liability whatsoever to the Owners for any loss,
damage, delay or expense of whatsoever nature, whether direct or indirect, (including
but not limited to loss of profit arising out of or in connection with
detention of or delay to the Vessel) and howsoever arising in the course of
performance of the Management Services UNLESS same is proved to have resulted
solely from the negligence, gross negligence or willful default of the Managers
or their employees or agents, or sub-contractors employed by them in connection
with the Vessel, in which case (save where loss, damage, delay or expense has
resulted from the Managers’ (acting by their Directors) personal act or
omission committed with the intent to cause same or recklessly and with
knowledge that such loss, damage, delay or expense would probably result). the
Managers’ liability for each incident or series of incidents giving rise to a
claim or claims shall never exceed a total of ten times the annual management
fee payable hereunder for Basic Services.

 

(ii)        Notwithstanding anything that may appear to
the contrary in this Agreement, the Managers shall not be responsible for any
of the actions of the Crew even if such actions are negligent, grossly
negligent or willful, except only to the extent that they are shown to have
resulted solely from a failure to discharge their obligations under Clause 3.1
in which case their liability shall be limited in accordance with the terms of
this Clause 10.

 

10.3         Indemnity - General

 

Except to the extent and solely for the amount
therein set out that the Managers would be liable under Clause 10.2, the Owners
hereby undertake to keep the Managers and their employees, agents and
sub-contractors indemnified and to hold them harmless against all actions,
proceedings, claims, demands or liabilities whatsoever or howsoever arising out
offer in connection
with the performance of this Agreement, and

 

10

 

 

against and in respect of all costs, loss, damages
and expenses (including legal costs and expenses on a full indemnity basis)
which the Managers may suffer or incur (either directly or indirectly) in the
course of the performance of this Agreement.

 

10.4         Indemnity - tax

 

Without prejudice to the general indemnity set out
in Clause 10.3, the Owners hereby undertake to keep the Managers, their
employees, agents and sub-contractors indemnified and to hold them harmless
against all taxes, imposts and duties levied by any government as a result of
the trading or other activities of the Owners or the Vessel or the Fleet and
that whether or not such taxes, imposts and duties are levied on the Owners or
the Managers.

 

10.5         “Himalaya”

 

It is hereby expressly agreed that no employee or
agent of the Managers (including every sub-contractor from time to time
employed by the Managers and the employees of such sub-contractors) shall in
any circumstances whatsoever be under any liability whatsoever to the Owners
for any loss, damage or delay of whatsoever kind arising or resulting directly
or indirectly from any act neglect or default on his part while acting in the
course of or in connection with his employment and, without prejudice to the
generality of the foregoing provisions in this Clause, every exemption,
limitation, condition and liberty herein contained and every right, exemption
from liability defence and immunity of whatsoever nature applicable to the
Managers or to which the Managers are entitled hereunder shall also be
available and shall extend to protect every such employee or agent of the
Managers acting as aforesaid.

 

10.6         The provisions of Clause 10 shall remain in
force notwithstanding termination of this Agreement.

 

11.           Prosecution of
Claims/Disputes other than Insurance

 

11.1         If required the Managers shall handle and
settle all claims arising out of the Management Services hereunder (other than insurance,
average and salvage claims which shall be dealt with in accordance with Clause
3.4.) and keep the Owners informed regarding any incident of which the Managers
become aware which gives or may give rise to claims or disputes involving third
parties.

 

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

 

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

 

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

 

11.5         The Owners shall pay to the Managers a fee
for time spent by the Managers in carrying out their obligations under Clause
11 and such fee shall be charged at the rate of US$650 per man per day of 8
hours. In addition any costs incurred by the Managers in carrying out their
obligations according to Clause 11 shall be reimbursed by the Owners.

 

12.           Auditing, Records

 

12.1         The Managers shall at all times maintain and
keep true and correct accounts and shall make the same available for inspection
and auditing by the Owners at such times as may be mutually agreed.
Accounting records shall be provided monthly (electronically), quarterly and
annually (by hard copy).

 

12.2         The Managers shall be entitled to microfilm
or archive all the Vessels’ records and arrange safe storage of the same, the costs
being included in the Vessel’s running costs.

 

12.3         All accounting and other records relating
the Vessel will be retained by the Managers for a period of two years after the
date of termination, for whatever reason, of this Agreement, and thereafter
shall be destroyed unless the Owners request the Managers to deliver such
records to them at the Owners’ expense.

 

13.           Inspection of Vessel

 

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

 

14.           Compliance with Laws and
Regulations

 

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

 

15.           Duration of the Agreement

 

15.1         Termination by Notice

 

This Agreement shall come into effect on the Date
of Commencement (except that the Managers are authorised, prior to such date to
do all such things in respect of which it shall be entitled to be paid or
reimbursed pursuant to clause 8.7) and shall continue thereafter until
terminated by either party giving to the other notice in writing, in which event
this Agreement shall, subject as aftermentioned terminate on the expiry of a
period of three months from the date upon which such notice was given. Where
the Vessel is not at a safe port or anchorage on the expiry of such period,
this Agreement shall terminate on the subsequent arrival of the Vessel at a
safe port or anchorage.

 

15.2         Termination by default -
Owners

 

(i)         The Managers shall be entitled to terminate
the Agreement with immediate effect by notice in writing if any moneys
requested by the Managers from the Owners or the owners of any vessel in the
Fleet, shall not have been received in the Managers’ nominated account within
ten (10) days of payment having been requested in writing by the Managers or if
the Owners fail to comply to the reasonable satisfaction of the Managers with
the requirements of clauses 6.3, 6.4 and 6.5.

 

(ii)        If the Owners

 

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

 

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

 

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

 

15.3         Termination by Default -
Managers

 

If the Managers fail materially to meet
their obligations under this Agreement, for reasons within the control of the Managers,

 

11

 

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

 

15.4         Liquidation

 

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

 

15.5         Extraordinary Termination

 

This Agreement shall be deemed to be terminated in
the case of the sale of the Vessel or if the Vessel becomes a total loss or is
declared as a constructive or compromised or arranged total loss or is
requisitioned. Notwithstanding such deemed termination, fees shall be paid in
accordance with the provisions of Clause 7.5.

 

15.6         For the purpose of sub-clause 15.5 hereof:

 

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

 

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

 

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

 

15.8         All outstanding fees and other sums payable by the
Owners require to be paid in full on or prior to termination, for whatever
reason, of this Agreement. Save where the Agreement is properly terminated by
the Owners in accordance with Clause 15.3, the Managers shall be entitled to be
paid fees in accordance with Clause 7.5.

 

16.           Confidentiality

 

16.1         Save for the purpose of enforcing or carrying out
as may be necessary their respective rights or obligations, each party agrees
to maintain and to use all reasonable endeavors to procure that their
respective officers and employees maintain confidentiality and secrecy in
respect of all information relating to the other’s business received by it
directly or indirectly pursuant to this Agreement.

 

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

 

17.           Third Party Rights

 

17.1         Any person (other than parties to this Agreement)
who is given any rights or benefits under Clauses 9 or 10 (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.

 

17.2         Save as provided in Clause 17.1 above the
operation of the Contracts (Rights of Third Parties) Act 1999 is hereby
excluded.

 

17.3         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.

 

17.4         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.

 

18.           Law and Arbitration

 

18.1         This Agreement shall be governed by English law
and any dispute arising out of or in connection with this Agreement shall be
referred to arbitration in London in accordance with the Arbitration Act 1996
or any statutory modification or re-enactment thereof for the time being in
force.

 

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

 

18.3         Save as after mentioned, the reference shall be to
three arbitrators, one to be appointed by each party and the third by the two
so appointed. A party wishing to refer a dispute to arbitration shall appoint
its arbitrator and send notice of such appointment to the other party requiring
the other party to appoint its arbitrator within 14 days of that notice and
stating that it will appoint its arbitrator as sole arbitrator unless the other
party appoints its own arbitrator and give notice that it has done so within
the 14 days specified. If the other party does not appoint its own arbitrator
and give notice that it has done so within the 14 days specified, the party
referring the dispute to arbitration may, without the requirement of any further
prior notice to the other party, appoint its arbitrator as sole arbitrator and
shall advise the other party accordingly. The award of a sole arbitrator shall
be as binding as if he had been appointed by agreement.

 

18.4         In cases where neither the claim nor any
counterclaim exceeds the sum of US$ 50,000 (or such other sum as the parties
may agree) the arbitration shall be conducted in accordance with the LMAA Small
Claims Procedure current at the time when the arbitration proceedings are
commenced.

 

19.           Amendments to Agreement

 

The Managers reserve the right to make such
changes to this Agreement as they shall consider necessary to take account of
regulatory changes which come into force after the date hereof and which affect
the operation of the Vessel. Such changes will be intimated in writing to the
Owners and will come into force on intimation or on the date on which such
regulatory or other changes come into effect (whichever shall be the later). unless the Owners give notice of
termination under-Clause 15.1.

 

12

 

20.           Time Limit for claims

 

Any and all liabilities of either party to the other arising under this
Agreement or otherwise in relation to the Vessel (except in the case of fraud)
shall be deemed to be waived and absolutely barred on the relevant date unless
prior to the relevant date written particulars of any claim (giving details of
the alleged breach in respect of which such claim is made and a preliminary
statement of the amount claimed) have been intimated in writing by the claimant
by the relevant date, and any such claim shall be deemed (if it has not
previously been satisfied, settled or withdrawn) to have been withdrawn unless
arbitration proceedings have been commenced under Clause 18 prior to the expiry
of six months after the relevant date. For the purposes of this Clause 20, the
“relevant date” is one year after the date of termination, for whatever reason,
of this Agreement.

 

21.           Condition of Vessel

 

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

 

22.           Use of Associated Companies

 

22.1         The Managers hereby disclose to the Owners that they
may, in the course of performing Management Services, utilise the services of
companies associated with the Managers. Without prejudice to the foregoing
generality, associated companies of the Managers may be used in connection with
inter  alia the following matters:

 

(i)            arranging travel to and from the Vessel for the Managers’
personnel and the Crew;

 

(ii)           placing insurance cover for the Vessel;

 

(iii)          undertaking loss/average adjustment and dealing
with insurance claims relating to the Vessel;

 

(iv)          providing legal
advice in connection with matters arising from the performance of Management
Services;

 

(v)           providing
consultancy services; and

 

(vi)          providing port
agency services.

 

Where companies associated with the Managers
provide services in connection with the above or any other matters, such
companies will be entitled to charge and retain for their own benefit usual
remuneration for the provision of their services (whether in the form of
commission or fees). The Managers will ensure that all such remuneration is
competitive

 

22.2         The Owners hereby consent to the
arrangements set out in Clause 22.1.

 

23.           Notices

 

23.1         Any notice or other communication under or in
relation to this Agreement (a “Communication”) may be sent by fax, telex, registered
or recorded mail or by personal delivery.

 

23.2         The addresses of the parties for service of a
Communication shall be as stated in Boxes 5 and 6 respectively of Part I.

 

23.3         Subject to Clause 23.4, a Communication
shall be deemed to have been delivered and shall take effect:

 

(i)            in the case of telex, when the recipient’s
answerback is received by the sender;

 

(ii)           in the case of a fax, when the sender receives one
or more transmission reports showing the whole of the Communication to have
been transmitted to the correct fax number; and

 

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

 

23.4         If under Clause 23.3 a Communication would be deemed to have been delivered on a day
which is not a business day in the place of receipt or after 18.00 (local time
in the place of receipt) it will be deemed to have been delivered, and shall take
effect, at 09.00 (local time in the place of receipt) on the next such business
day.

 

24.           Staff Loyalty

 

The Owners shall not and shall procure that their
parent, subsidiary and associates shall not, during the course of this
Agreement or for a period of six months following termination directly or
indirectly offer any employment to any employee of the Managers engaged in
providing Management Services or directly or indirectly induce or solicit any
such person to take up employment with the Owners or any associated or
affiliated company or use the services of any such person either independently
or via a third party.

 

25.           Entire Agreement

 

25.1         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.

 

25.2         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 for fraud.

 

13

 

SHIP MANAGEMENT AGREEMENT
- PART III

 

OTHER SERVICES

 

APPENDIX 1* Chartering.(only applicable if not deleted   fee specified in Box 1 of the Fee Schedule)

 

The Managers shall, in accordance with the Owner’s
instructions, provide chartering services which term includes but is not
limited to seeking and negotiating employment for the Vessel and the conclusion
(including the execution thereof) of charterparties or other contracts relating
to the employment of the Vessel. Consent thereto in writing (including telex or
fax) shall be obtained from the Owners before any contract in respect of the
Vessel’s employment is concluded.

 

The fee for the foregoing services shall be such
sum as is set out in the Fee Schedule.

 

APPENDIX 2* - Post Fixture Services (only applicable if not deleted - fee specified in
Box 2 of the Fee Schedule)

 

The
Managers shall provide post fixture services which includes such of the
following functions as have been agreed with the Owners:-

 

(i)            liaising with charterers in connection with
accounting matters including without limitation the processing of debit notes
(which shall be provided directly to the Managers by charterers);

 

(ii)           provision of
voyage and time charter estimates;

 

(iii)          checking the cargo specification with the Master
and cargo shippers to ensure the Vessel is capable of the safe carriage of the
cargo;

 

(iv)          instructing the master regarding the fixture
and issuing voyage orders;

 

(v)           arranging on and off hire surveys;

 

(vi)          arranging for bunkers;

 

(vii)         appointing Owners’ agents as required.

 

The
fee for the foregoing services shall be such sum as is set out in the Fee
Schedule.

 

APPENDIX 3* - Surveys or other Consultancy Services (only applicable if not deleted - fee specified in
Box 3 of the Fee Schedule)

 

Any
routine superficial inspections of ships afloat or other consultancy services
will be undertaken on the following terms:-

 

1.             Any report issued by the Managers is issued solely
to the person to whom it is addressed and under no circumstances is any part of
it to be issued or made available to any other party.

 

2.             Inspections are limited to those parts of the
ship, her machinery equipment or records (if made available) which were actually
exposed, uncovered or readily accessible and the Managers are unable to report
on any other part of the ship, her machinery or equipment and shall have no
responsibilities whatsoever in such respect.

 

3.             The Managers are unable to report on the ship’s
water tightness or integrity, the operational efficiency of its machinery or
equipment, its suitability for any business or trade, or its stability
characteristics.

 

4.             The Managers shall in no circumstances be liable
for any indirect, consequential or economic losses arising from any surveys of
ships or other consultancy services.

 

5.             The Managers’ maximum liability for any loss
arising from surveys or consultancy services shall be 10 times the fee payable
therefor.

 

6.             Fees in respect of routine superficial inspections
afloat shall be charged at the rate of US$ 650 per day or part thereof. Fees for
other consultancy services shall be agreed before work is commenced and unless
otherwise agreed shall be payable on delivery of the report by the Managers.

 

APPENDIX 4* - Bunker Services (only applicable if not deleted - fee specified in
Box 4 of the Fee Schedule)

 

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

 

The
Managers shall be entitled to order bunker fuel through such brokers or
suppliers as the Managers deem appropriate unless the Owners instruct the
Managers to utilize a particular supplier which the Managers will be obliged to
do provided that the Owners have made prior credit arrangements with such
supplier. The Owners shall comply with the terms of any credit arrangements
made by the Managers on their behalf.

 

The
Managers shall not in any circumstances have any liability for any bunkers
which do not meet the required specification. The Managers will, however, take
such action, on behalf of the Owners, against the supplier of the bunkers, as
is agreed with the Owners

 

The
fee for the foregoing services shall be such sum as is set out in the Fee
Schedule.

 

APPENDIX 5* - On Board Safety Audit and Safety Training (only applicable if not
deleted - fee specified in Box 5 of the Fee Schedule)

 

1.             The Managers shall
arrange on board safety audit and training which will include the following
functions:-

 

(i)      preparation and updating of specialist safety manuals not already
included in the SMS;

 

(ii)     periodic on board safety audit and on board safety training;

 

(iii)    reporting to the Vessel (via the Managers) on information gained from
visits to other vessels and industry forums.

 

2.             The cost of the foregoing services shall be such
sum as is set out in the Fee Schedule and shall be included in the budget agreed
with the Owners.

 

3.             The Managers have
entered into sub-contracts with third parties to permit them to supply this
service.

 

APPENDIX 6*    Tax Compliance (only applicable if not deleted fee-specified in Box-6 of the Fee Schedule)

 

14

 

United States of America

 

A federal income tax return (accompanied by such
additional information as prescribed under applicable regulations) must be
filed annually by all ship owners or operators who have been in receipt of
United States gross transportation income.

 

Filing is required whether or not tax-is due
and/or exemption is claimed.

 

Foreign companies may claim exemption from United
States Federal tax on transportation income where (a) a reciprocal agreement
exists between the United States and the country in which the foreign company
is incorporated and (b) certain further conditions are satisfied.

 

The Managers will engage the services of a
suitably qualified firm of accountants to make applications for exemption (if
available) and to file the necessary returns.

 

The Managers will liaise with the accountants
as-required and will provide them with a schedule of gross transportation
income.

 

The Owners will forthwith provide the
Managers-with all information required by them to enable them to prepare and
file the necessary returns.

 

The fee for the foregoing services shall be such
sum as is set out in the Fee Schedule (exclusive of fees payable to the
accountants).

 

Other Jurisdictions

 

(*insert appropriate details)

 

APPENDIX
* 7   Cargo Superintendents (only applicable
if not deleted   fee specified in Box 7
of the Foe Schedule)

 

The Managers shall provide services in connection
with the loading and
discharging of cargoes and ballast from Vessels in accordance with the
following provisions:

 

Attendance at Port Prior to Arrival of Vessel

 

The Managers will procure that their Cargo
Superintendent attends the load or discharge port prior to the Vessel’s arrival
for the purposes of having preliminary meetings with the port/terminal staff,
and where applicable, the Vessel’s brokers, receivers and charterers or their
respective representatives. The Cargo Superintendent will also meet the P &
I Club representative, if relevant, and, if required, meet the US Coast Guard
where the port is in USA. The Owners will give the Managers adequate notice of
their requirements for the attendance of the Cargo Superintendent and the
Vessel’s anticipated arrival at port to enable the Managers to deploy the Cargo
Superintendent. Thereafter the Owners will liaise regularly with the
representative nominated by the Managers for this purpose.

 

Functions-While Vessel in Port

 

The Cargo Superintendent will, on arrival of the
Vessel, perform the following functions:

 

(i)            consider the cargo
and ballast operation with the Master and thereafter review the Vessel’s load
and discharge plan with the Master and monitor the entire cargo operation;

 

(ii)           review the Owner’s
procedures for cargo and ballast operations and check that, where applicable,
these arc being adhered to;

 

(iii)          assess the performance
of the Master, Officers and crew of the Vessel for cargo and ballast operations only; and

 

(iv)          assist with any Vessel inspection being
carried out (e.g. by State, charterers etc).

 

The fee for the foregoing service will be such sum
as is-set out in the Fee Schedule. Travelling expenses and disbursements will
be payable in addition to such fee.

 

* delete if not applicable

 

15

 

SHIP MANAGEMENT AGREEMENT
- PART IV

 

FEE SCHEDULE 

 

SHIP NAME:   [Ship name]

 

	
  BASIC
  SERVICES (Clause 3 of Part II)

  	
   

  	
  Amount

  	
   

  	
  Frequency

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Management Fee

  	
   

  	
   

  	
  $

  	
  8,333

  	
   

  	
  monthly

  	
   

  
	
  Information System fees

  	
   

  	
   

  	
  $

  	
  400

  	
  *

  	
  Monthly, Pro-rata as used

  	
   

  
	
  Planned maintenance – data base

  development fee (maximum of 42

  chargeable days)

  	
   

  	
   

  	
  Only if
  required

  	
   

  	
  30 days of invoice

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER SERVICES (Clause 4 of Part II)

  (delete if not applicable)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Chartering

  	
   

  	
   

  	
  Nil

  	
   

  	
  monthly

  	
   

  
	
  2. Post Fixture Services

  	
   

  	
   

  	
  Nil

  	
  **

  	
  monthly

  	
   

  
	
  3. Surveys Consultancy

  	
   

  	
   

  	
  $

  	
  650
  Only if required

  	
   

  	
  Daily

  	
   

  
	
  4. Fuel Services

  	
   

  	
   

  	
  $

  	
  1 per
  MT supplied

  	
   

  	
  variable

  	
   

  
	
  5. On board Safety Audit

  	
   

  	
   

  	
  $

  	
  415.42
  

  	
  ***

  	
  monthly

  	
   

  
	
  6. Tax Compliance

  	
   

  	
   

  	
  Only
  if required

  	
   

  	
  30 days of invoice

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7. Cargo Superintendents

  	
   

  	
   

  	
  Only
  if required

  	
   

  	
  30 days of invoice

  	
   

  

 

*       Information System, included in budget under item
Management Expenses (583-0300)

 

**     Post Fixture. Nil charges for post fixture while limited to items as
shown. Any additional services to be charged at a mutually agreeable rate if
and when utilized.

 

***   On board Safety Audit. Included in budget under SMS Inspection
(561-0300). These inspections are carried out by a sister company Seatec Safety
Systems. This Company is operated as a totally independent company with an
independent BoD and carries out similar services for 3rd party clients.

 

16

 

SHIP MANAGEMENT AGREEMENT
- PART V

 

FLEET DETAILS

 

	
  Name:
  [Ship
  name]

  	
   

  	
  Flag:
  Marshall
  Islands

  	
   

  	
  IMO: 

  	
   

  	
  Call
  Sign: 

  

 

17

 

SHIP MANAGEMENT AGREEMENT - PART
VI

 

INITIAL BUDGET

 

SHIP NAME:   [Ship name]

 

	
  Crew

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crew Wages

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crew Travel

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crew
  Training/Medical

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Manning Costs

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Victualling

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Insurance

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hull &
  Machinery Premiums

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P&I Premiums

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deductibles

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Technical

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stores

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spares

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lub Oils

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Surveys &
  Services

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Repairs

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety &
  Risk

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administration
  / Overheads

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Registration
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Management Fees

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Management
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other Costs

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  CURRENT RUNNING COSTS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Drydocking

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  RUNNING COSTS

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]