Common use of Budgets and Management of Funds Clause in Contracts

Budgets and Management of Funds. 9.1 The Managers shall prepare annually a Budget estimating the annual Operating Costs for the following twelve months. Such budget shall include the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the Budget. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent annual budgets shall be prepared by the Managers not less than three months before the anniversary date of the commencement of this Agreement (see Clause 2 and Box 4). 9.2 Following its preparation of the budget, the Managers shall prepare their estimate of the working capital requirement of the Vessels and the Managers shall each month up-date this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate the Vessels for the ensuing month and payment of any occasional or extraordinary item of expenditure, as described in Clauses 25, 26 and 28, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vessels. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Managers in a separate bank account. As provided in Clause 7.2, the Managers may debit all expenses incurred by the Managers under this Agreement against this account. 9.3 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels monthly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationery. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include months in such form as the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the BudgetOwners require. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners not less than three months before the anniversary date of the commencement of this the Agreement (see Clause 2 and Box 4). Managers will be preparing budgets in connection with, inter alia, the provision of the Management Services which the Managers will be submitting for as the Owners reasonably require. 9.2 The Owners shall indicate to the Managers-their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed budget. 9.3 Following its preparation the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessels Vessel and the Managers shall each month up-date update this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vesselsprovisions. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Managers Owners in a separate bank account. As provided account in Clause 7.2, the name of the Managers may debit all expenses incurred or, if requested by the Managers under this Agreement against this accountManagers, in the name of the Owners. 9.3 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels Vessel in such form as required by the Owners monthly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationerymutually agreed. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include months in such form as the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the BudgetOwners require. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners not less than three months before the anniversary date of the commencement of this the Agreement (see Clause 2 and Box 4). Managers will be preparing budgets in connection with, inter alia, the provision of the Management Services which the Managers will be submitting for as the Owners reasonably require. 9.2 The Owners shall indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed budget. 9.3 Following its preparation the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital capita! requirement of the Vessels Vessel and the Managers shall each month up-date update this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vesselsprovisions. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Managers Owners in a separate bank account. As provided account in Clause 7.2, the name of the Managers may debit all expenses incurred or, if requested by the Managers under this Agreement against this accountManagers, in the name of the Owners. 9.3 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels Vessel in such form as required by the Owners monthly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationerymutually agreed. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers should this Agreement be extended as per Clause 17 shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include months in such form as the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the BudgetOwners require. The budget for the first year 14 months hereof is set out in Annex “C” heretofixed to be US$ 3,550 per day. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners not less than three two months before the anniversary date of the commencement of this Agreement Owners’ financial year (see Clause 2 and Box 4). 9.2 The Owners shall indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed budget. Should the Owners disagree with the budget and same is not amended within three (3) days to meet with Owners reasonable requirements, Owners will have a right to terminate this Agreement as per clause 18.2. 9.3 Following its preparation the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessels Vessel and the Managers shall each month up-date this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vesselsprovisions. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Managers Owners in a separate bank account. As provided in Clause 7.2, the Managers may debit all expenses incurred by the Managers under this Agreement against this account. 9.3 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels Vessel in such form as required by the Owners monthly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationerymutually agreed. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers should this Agreement be extended as per Clause 17 shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include months in such form as the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the BudgetOwners require. The budget for the first year hereof 14 months here is set out in Annex “C” heretofixed to be US$ 3,550 per day. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners not less than three two months before the anniversary date of the commencement of this Agreement Owners’ financial year (see Clause 2 and Box 4). 9.2 The Owners shall indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed budget. Should the Owners disagree with the budget and same is not amended within three (3) days to meet with Owners reasonable requirements, Owners will have a right to terminate this Agreement as per clause 18.2. 9.3 Following its preparation the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessels Vessel and the Managers shall each month up-date this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vesselsprovisions. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Managers Owners in a separate bank account. As provided in Clause 7.2, the Managers may debit all expenses incurred by the Managers under this Agreement against this account. 9.3 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels Vessel in such form as required by the Owners monthly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationerymutually agreed. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include fiscal year in the estimated cost of anticipated drydockings schedule to Managers’ standard format or such other form as may be performed on the Vessels during the particular year covered by the Budgetmutually agreed in writing. The first budget which will be submitted will be for the first year hereof is set out in Annex “C” heretoperiod from the Effective Date to December 31st, 2017. Subsequent annual budgets shall be prepared by the Managers not less than three months before for each calendar/fiscal year and submitted to the anniversary date of Owners at least forty-five (45) days prior to the commencement of this Agreement (see Clause 2 and Box 4)each calendar/fiscal year, in respect of that fiscal year. 9.2 Following its preparation The Owners shall indicate to the Managers their acceptance and approval of the annual budget within thirty (30) days of presentation and in the absence of any such indication, the Managers shall be entitled to assume that the Owners have accepted the proposed budget. 9.3 In case requested by the Owners, following the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessels Vessel and the Managers shall each month up-date may update this estimateestimate as may be required from time to time. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiumspremia, bunkers or provisions or provisions. In addition, the Owners shall provide the Managers upon request with any other unbudgeted Operating Cost reasonably or necessarily incurred by funds which the Managers may request to cover any expense which the Managers in the operation of the Vesselstheir reasonable judgment consider to be for an emergency. Such All such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of in a separate interest-bearing bank account or accounts which shall be operated by the Managers in a separate bank accounttrust for the Owners. As provided The Managers shall be entitled to allocate such funds in Clause 7.2, such manner as the Managers may debit all expenses incurred by determine and it shall not be open to the Owners to direct the Managers under this Agreement against this accountotherwise. The Managers shall not expend funds in excess of 5% of the budgeted amounts, without prior written Owners’ approval. 9.3 9.4 The Managers shall produce a monthly comparison between budgeted and actual income and expenditure of the Vessels monthly Vessel in the Managers’ standard format or at such other intervals form as determined by may be mutually agreed in writing. Budget/actual comparison reports will be produced and submitted on a monthly basis within 20 days from month end and will include all invoiced and accrued expenses. On a quarterly basis the Managers shall also provide variance explanations for variances of 10% or greater based on the total year to date cost. All invoices will be addressed to the Vessel name, c/o the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationery. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers shall prepare annually a Budget estimating the annual Operating Costs for the following twelve months. Such budget shall include the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the Budget. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent annual budgets shall be prepared by the Managers not less than three months before the anniversary date of the commencement of this Agreement (see Clause 2 and Box 4). 9.2 Following its preparation of the budget, the Managers shall prepare their estimate of the working capital requirement of the Vessels and the Managers shall each month up-date this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate the Vessels for the ensuing month and payment of any occasional or extraordinary item of expenditure, as described in Clauses 25, 26 and 28, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vessels. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Managers in a separate bank account. As provided in Clause 7.2, the Managers may debit all expenses incurred by the Managers under this Agreement against this account. 9.3 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels monthly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationery. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include months calendar year in such form as the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the BudgetOwners require. The budget for the first year hereof is set out in Annex “C” hereto. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners not less than three one months before the 31st December of the running year anniversary date of the commencement of this Agreement (see Clause 2 and Box 4). 9.2 The Owners shall indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed budget. 9.3 Following its preparation the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessels Vessel (i.e. on twelfth of the budget) and the Managers shall each month up-date this estimate. Based thereon, the Managers shall each Each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vesselsprovisions. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of the Managers Owners in a separate bank account. As provided in Clause 7.2, the Managers may debit all expenses incurred by the Managers under this Agreement against this account. 9.3 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels monthly Vessel in such form as required or approved by the Owners monthly, quarterly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationerymutually agreed. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include fiscal year in the estimated cost of anticipated drydockings schedule to Managers´ standard format or such other form as may be performed on the Vessels during the particular year covered by the Budgetmutually agreed in writing. The first budget which will be submitted will be for the first year hereof is set out in Annex “C” heretoperiod from the Effective Date to December 31st, 2017. Subsequent annual budgets shall be prepared by the Managers not less than three months before for each calendar/fiscal year and submitted to the anniversary date of Owners at least forty-five (45) days prior to the commencement of this Agreement (see Clause 2 and Box 4)each calendar/fiscal year, in respect of that fiscal year. 9.2 Following its preparation The Owners shall indicate to the Managers their acceptance and approval of the annual budget within thirty (30) days of presentation and in the absence of any such indication, the Managers shall be entitled to assume that the Owners have accepted the proposed budget. 9.3 In case requested by the Owners, following the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessels Vessel and the Managers shall each month up-date may update this estimateestimate as may be required from time to time. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiumspremia, bunkers or provisions or provisions. In addition, the Owners shall provide the Managers upon request with any other unbudgeted Operating Cost reasonably or necessarily incurred by funds which the Managers may request to cover any expense which the Managers in the operation of the Vesselstheir reasonable judgment consider to be for an emergency. Such All such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ written request and shall be held to the credit of in a separate interest-bearing bank account or accounts which shall be operated by the Managers in a separate bank accounttrust for the Owners. As provided The Managers shall be entitled to allocate such funds in Clause 7.2, such manner as the Managers may debit all expenses incurred by determine and it shall not be open to the Owners to direct the Managers under this Agreement against this accountotherwise. The Managers shall not expend funds in excess of 5% of the budgeted amounts, without prior written Owners’ approval. 9.3 9.4 The Managers shall produce a monthly comparison between budgeted and actual income and expenditure of the Vessels monthly Vessel in the Managers´ standard format or at such other intervals form as determined by may be mutually agreed in writing. Budget/actual comparison reports will be produced and submitted on a monthly basis within 20 days from month end and will include all invoiced and accrued expenses. On a quarterly basis the Managers shall also provide variance explanations for variances of 10% or greater based on the total year to date cost. All invoices will be addressed to the Vessel name, c/o the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationery. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.

Budgets and Management of Funds. 9.1 The Managers shall prepare present to the Owners annually a Budget estimating the annual Operating Costs budget for the following twelve months. Such budget shall include months in such form as the estimated cost of anticipated drydockings schedule to be performed on the Vessels during the particular year covered by the BudgetOwners require. The budget for the first year hereof is set out in Annex “"C” " hereto. Subsequent annual budgets shall be prepared by the Managers and submitted to the Owners not less than three months before the anniversary date of the commencement of this Agreement (see Clause 2 and Box 4)4).Managers will be preparing budgets in connection with, inter alia, the provision of the Management Services which the Managers will be submitting for as the Owners reasonably require. 9.2 The Owners shall indicate to the Managers their acceptance and approval of the annual budget within one month of presentation and in the absence of any such indication the Managers shall be entitled to assume that the Owners have accepted the proposed budget. 9.3 Following its preparation the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessels Vessel and the Managers shall each month up-date update this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to operate run the Vessels Vessel for the ensuing month and month, including the payment of any occasional or extraordinary item of expenditure, such as described in Clauses 25, 26 and 28emergency repair costs, additional insurance premiums, bunkers or provisions or any other unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in the operation of the Vesselsprovisions. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers’ ' written request and shall be held to the credit of the Managers Owners in a separate bank account. As provided account in Clause 7.2, the name of the Managers may debit all expenses incurred or, if requested by the Managers under this Agreement against this accountManagers, in the name of the Owners. 9.3 9.4 The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessels Vessel in such form as required by the Owners monthly or at such other intervals as determined by the Managers. 9.4 The Managers shall, at no extra cost to the Owners, provide their own office accommodations, office staff, facilities and stationerymutually agreed. 9.5 All discounts and commissions obtained by the Managers in the course of the management of the Vessels shall be credited to the Owners. 9.6 Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their owner own funds to finance the provision of the Management Services.