Common use of Accounting and Budgeting Clause in Contracts

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, on agreement of an additional fee, 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 calendar year 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 5 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 notify the Managers of their acceptance and approval of the annual budget within 14 days of presentation and in the absence of any response the Owners shall be deemed to have accepted the said budget. In the event that the Owners do not accept an annual budget presented by the Managers within the period aforesaid and that budget is, in the opinion of the Managers, fair and reasonable, the Managers shall be entitled to terminate this Agreement by notice in writing, in which event this Agreement shall terminate on the expiry of a period of one (1) month from the date upon which such notice is given. 3.5.4 The Managers shall produce a monthly comparison between budgeted and actual expenditure of the Vessel in the Managers' standard format or, on agreement of an additional fee, such other form as may be mutually agreed in writing. 3.5.5 This Clause 3.5 is subject to the provisions of Part VI.

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, on agreement of an additional fee, 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 calendar year 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 5 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 notify the Managers of their acceptance and approval of the annual budget within 14 days of presentation and in the absence of any response the Owners shall be deemed to have accepted the said budget. In the event that the Owners do not accept an annual budget presented by the Managers within the period aforesaid and that budget is, in the opinion of the Managers, fair and reasonable, the Managers shall be entitled to terminate this Agreement by notice in writing, in which event this Agreement shall terminate on the expiry of a period of one (1) month from the date upon which such notice is given. 3.5.4 The Managers shall produce a monthly comparison between budgeted and actual expenditure of the Vessel in the Managers' standard format or, on agreement of an additional fee, such other form as may be mutually agreed in writing. 3.5.5 This Clause 3.5 is subject to the provisions of Part VI.

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, on agreement of an additional fee, 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 calendar year 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 5 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 yearyear not later than three months before the end of the period. 3.5.3 The Owners shall notify indicate to the Managers of their acceptance and approval of the annual budget within 14 days of presentation and in the absence of any response such acceptance the Managers shall be entitled to assume that the Owners shall be deemed to have accepted the said budget. In Following the event that the Owners do not accept an annual budget presented by the Managers within the period aforesaid and that budget is, in the opinion agreement of the Managers, fair and reasonablebudget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessel. The budget will be entitled discussed between the Managers and Owners, and adjustments made as agreed. Should agreement not be reached, the Owners and/or Manager will have a right to terminate this Agreement by notice in writingagreement, in which event this Agreement shall terminate on the expiry of a period of one (1) month from the date upon which such notice is givenas per clause 15.1. 3.5.4 The Managers shall produce a monthly comparison between budgeted and actual expenditure of the Vessel in the Managers' ’ standard format or, on agreement of an additional fee, 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. 3.5.5 This Clause 3.5 is subject to the provisions of Part VI.

Accounting and Budgeting. Ship Management Agreement OWNERS MANAGERS SCORPIO SHIP MANAGEMENT AGREEMENT Version Number : 01-2017 Page Number : 25 of 30 File : 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, on agreement of an additional fee, 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 calendar year 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 5 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 notify the Managers of their acceptance and approval of the annual budget within 14 days of presentation and in the absence of any response the Owners shall be deemed to have accepted the said budget. In the event that the Owners do not accept an annual budget presented by the Managers within the period aforesaid and that budget is, in the opinion of the Managers, fair and reasonable, the Managers shall be entitled to terminate this Agreement by notice in writing, in which event this Agreement shall terminate on the expiry of a period of one (1) month from the date upon which such notice is given. 3.5.4 The Managers shall produce a monthly comparison between budgeted and actual expenditure of the Vessel in the Managers' standard format or, on agreement of an additional fee, such other form as may be mutually agreed in writing. 3.5.5 This Clause 3.5 is subject to the provisions of Part VI.