Common use of MAINTENANCE AND OPERATION OF VESSEL Clause in Contracts

MAINTENANCE AND OPERATION OF VESSEL. Shipowner covenants and agrees to: (a) maintain and preserve the Vessel in good running order and repair, so that the Vessel shall be, in so far as due diligence can make her so, tight, staunch, strong and well and sufficiently tackled, appareled, furnished, equipped and in every respect seaworthy and in good operating condition; (b) maintain and preserve the Vessel consistent with first-class ship-ownership and management practice and so as to maintain her present class (namely ___________ at _____________[Lloyds Register of Shipping/American Bureau of Shipping]) or an equivalent class with _________________ [Lloyds Register of Shipping/American Bureau of Shipping] or another classification society approved by Mortgagee, which approval shall not be unreasonably withheld, free of recommendations and qualifications affecting class save those notified to and approved in writing by Mortgagee and so as to comply with all applicable laws from time to time applicable to vessels documented under the laws and flag of the United States of America. Mortgagee shall not withhold its approval as to those recommendations or qualifications affecting class which do not prevent the Vessel from remaining in normal passenger service so long as Shipowner executes an undertaking, in form and substance satisfactory to Mortgagee, to take such actions as are necessary to remove same at the Vessel's next scheduled drydock or wetdock but in no event subsequent to a sale of the Vessel pursuant to Section 2.2; (c) not make any modification to the Vessel which would, or would be reasonably likely to, materially alter the structure, type or performance characteristics of the Vessel or materially reduce the value of the Vessel; (d) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not materially diminish the value of the Vessel; (e) not remove any material part of, or item of equipment installed on, the Vessel unless the part or item so removed is no longer required for the operation of the Vessel or is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest in favor of any person other than Mortgagee (and other than Permitted Liens) and becomes an installation on the Vessel and the property of Shipowner and subject to the lien constituted by this Mortgage; (f) submit the Vessel regularly to such periodical or other surveys as may be required for classification purposes and supply to Mortgagee copies of all survey reports issued in respect thereof; (g) permit Mortgagee by surveyors or other persons appointed by it for that purpose to board the Vessel at all reasonable times and on reasonable prior notice, for the purpose of inspecting her condition or papers or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections, provided Mortgagee does not materially interfere with the schedule or operation of the Vessel; (h) promptly furnish to Mortgagee copies of all such information in the possession or under the control of Shipowner or any of its affiliates, as Mortgagee may from time to time reasonably require regarding the Vessel, her employment, position and engagements, particulars of all towages and salvages and, upon Mortgagee's request in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her; (i) notify Mortgagee forthwith of: (i) any casualty to the Vessel which is or is likely to be a Major Casualty; (ii) any occurrence in consequence whereof the Vessel has become or is, by the passing of time or otherwise, likely to become a Total Loss; (iii) any requirement or recommendation made by any insurer or classification society or by any competent authority affecting class or which would or would be reasonably likely to materially affect the operation of the Vessel; (iv) any arrest of the Vessel or the exercise or purported exercise of any Security Interest on the Vessel or her Insurances or any requisition of the Vessel; (v) any intended drydocking or wetdocking of the Vessel; (vi) an incident of salvage or general average with respect to the Vessel; (vii) any Environmental Claim being or made against Shipowner or otherwise in connection with the Vessel; or (viii) any Environmental Incident occurring, (j) keep proper books of account in respect of the Vessel and as and when Mortgagee may so reasonably require make such books available for inspection on behalf of Mortgagee at reasonable times and on reasonable notice, and furnish satisfactory evidence that the wages and allotments and the insurance and pension contributions of the Master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the Master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress; (k) comply in all material respects, or procure such compliance, with all Environmental Laws and Environmental Approvals relating to the Vessel, its operation or management and the business of Shipowner from time to time; and (l) keep Mortgagee advised, in writing on such regular basis and in such detail as Mortgagee shall reasonably require, of Shipowner's response to every Environmental Claim and Environmental Incident.

MAINTENANCE AND OPERATION OF VESSEL. Shipowner covenants and agrees to: (a) maintain and preserve the Vessel in good running order adequately and repair, so that the Vessel shall beit is suitable for use in its business as presently conducted in all material respects, in so far as due diligence can make her so, tight, staunch, strong ordinary wear and well tear and sufficiently tackled, appareled, furnished, equipped and in every respect seaworthy and in good operating conditiondepreciation excepted; (b) maintain the Vessel, fair wear and preserve the Vessel consistent with first-class ship-ownership and management practice and so as to maintain her present class (namely ___________ at _____________[Lloyds Register of Shipping/American Bureau of Shipping]) or an equivalent class with _________________ [Lloyds Register of Shipping/American Bureau of Shipping] or another classification society approved by Mortgagee, which approval shall not be unreasonably withheldtear excepted, free of any conditions or recommendations and qualifications by the classification society in which it is entered, free of material average damage affecting class save those notified to and approved in writing by Mortgagee and so as to comply class, with all applicable laws from time to time applicable to vessels documented under the laws class and flag of the United States of America. Mortgagee shall not withhold its approval as to those recommendations or qualifications affecting trading certificates, national and international, clean and valid without condition by class which do not prevent the Vessel from remaining in normal passenger service so long as Shipowner executes an undertaking, in form and substance satisfactory to Mortgagee, to take such actions as are necessary to remove same at with the Vessel's next scheduled drydock or wetdock but in no event subsequent hull surveys and continuous machinery survey cycles up to a sale of the Vessel pursuant to Section 2.2date; (c) maintain the Vessel such that it conforms with then-existing requirements of the U.S. Coast Guard, IMO and SOLAS and all other national and international rules, regulations, requirements, treaties and conventions which are required to be complied with or observed by the Vessel in order to allow the Vessel to operate in its business as presently conducted, provided that the foregoing shall not make be construed to require Shipowner to cause the Vessel to comply with any such requirements that are retroactive in effect and that require a material modification to the Vessel Vessel, and notify Mortgagee forthwith of any circumstances which would, or would be reasonably likely to, materially alter the structure, type or performance characteristics indicate that any of the Vessel licenses, permissions, authorizations and consents relating to the foregoing may be revoked or materially reduce may not be renewed, in whole or in part, in the value ordinary course of the Vesselevents; (d) procure that all repairs to or replacement notify Mortgagee forthwith of any damagedreceipt of any notice from any Governmental Body regarding impending rules, worn regulations or lost parts or equipment be effected requirements that would prevent the Vessel from operating in such manner (both its business as regards workmanship and quality of materials) as to not materially diminish the value of the Vesselpresently conducted in any material respect; (e) not remove any material part of, or item of equipment installed on, employ the Vessel unless the part in any trade or item so removed is no longer required for the operation of the Vessel or is forthwith replaced by a suitable part or item business which is in unlawful under the same condition as or better condition than the part or item removed, is free from any Security Interest in favor Laws of any person other than Mortgagee (and other than Permitted Liens) and becomes an installation relevant jurisdiction or in carrying illicit or prohibited goods, in each case to the extent such use has or could have a continuing material adverse effect on the Vessel and the property of Shipowner and subject or in any manner whatsoever which may render it liable to the lien constituted by this Mortgage;destruction, seizure or confiscation; and (f) submit the Vessel regularly to such periodical or other surveys as may be required for classification purposes and supply to Mortgagee copies of all survey reports issued in respect thereof; (g) permit Mortgagee by surveyors or other persons appointed by it for that purpose to board the Vessel at all reasonable times and on reasonable prior notice, for the purpose of inspecting her condition or papers or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections, provided Mortgagee does not materially interfere with the schedule or operation of the Vessel; (h) promptly furnish to Mortgagee copies of all such information in the possession or under the control of Shipowner or any of its affiliates, as Mortgagee may from time to time reasonably require regarding the Vessel, her employment, position and engagements, particulars of all towages and salvages and, upon Mortgagee's request in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her; (i) notify Mortgagee forthwith of: (i) any casualty to the Vessel which is or is likely to be a Major Casualty; (ii) any occurrence in consequence whereof the Vessel has become or is, by the passing of time or otherwise, likely to become a Total Loss; (iii) any requirement or recommendation made by any insurer or classification society or by any competent authority affecting class or which would or would be reasonably likely to materially affect the operation of the Vessel; (ivii) any arrest of the Vessel or the exercise or purported exercise of any Security Interest on the Vessel or her Insurances or any requisition of the Vessel; (v) any intended drydocking or wetdocking of the Vessel; (vi) an incident of salvage or general average with respect to the Vessel; (vii) any Environmental Claim being or made against Shipowner or otherwise in connection with the Vessel; or (viii) any Environmental Incident occurring, (j) keep proper books of account in respect of the Vessel and as and when Mortgagee may so reasonably require make such books available for inspection on behalf of Mortgagee at reasonable times and on reasonable notice, and furnish satisfactory evidence that the wages and allotments and the insurance and pension contributions of the Master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the Master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress; (k) comply in all material respects, or procure such compliance, with all Environmental Laws and Environmental Approvals relating to the Vessel, its operation or management and the business of Shipowner from time to time; and (liii) keep Mortgagee advised, in writing on such regular basis and in such detail as Mortgagee shall reasonably require, of Shipowner's response to every any material Environmental Claim and Environmental IncidentIncident occurring.

MAINTENANCE AND OPERATION OF VESSEL. Shipowner covenants 9.1 Charterer at its own cost and agrees to: (a) expense shall maintain and preserve the Vessel in good running order and repair, so that the Vessel shall beVessel, in so far insofar as due diligence can make take her so, is tight, staunch, strong strong, and well and sufficiently tackled, appareledapparelled, furnished, equipped and in every respect seaworthy and in good operating condition;equipped. (b) maintain and preserve 9.2 Charterer covenants that the Vessel consistent will at all times comply with first-class ship-ownership applicable laws, treaties, convention rules and management practice regulations issued thereunder, and so will keep on board, when required thereby, valid certificates showing compliance therewith. 9.3 Charterer will not cause or permit the Vessel to be operated in any manner contrary to applicable laws, treaties, conventions or rules and regulations and undertakes to do all such things, without expense to Owner, as to maintain her present class (namely ___________ at _____________[Lloyds Register of Shipping/American Bureau of Shipping]) or an equivalent class with _________________ [Lloyds Register of Shipping/American Bureau of Shipping] or another classification society approved by Mortgagee, which approval shall not be unreasonably withheld, free of recommendations and qualifications affecting class save those notified to and approved in writing by Mortgagee and so as necessary to comply with all applicable laws from time requirements to time applicable to vessels documented under the laws and flag of the United States of America. Mortgagee shall not withhold its approval as to those recommendations or qualifications affecting class which do not prevent the Vessel from remaining in normal passenger service so long as Shipowner executes an undertaking, in form and substance satisfactory to Mortgagee, to take such actions as are necessary to remove same at the Vessel's next scheduled drydock or wetdock but in no event subsequent to a sale of the Vessel pursuant to Section 2.2; (c) not make any modification to the Vessel which would, or would be reasonably likely to, materially alter the structure, type or performance characteristics of the Vessel or materially reduce the value permit lawful operation of the Vessel; (d) procure ; provided, however, that all repairs to or replacement Charterer may in good faith contest the validity and application of any damagedsuch law or rule in any reasonable manner which does not adversely affect the property or rights of Owner hereunder, worn and no mechanical or lost parts nonsubstantial noncompliance with the provision of this Section 9.5 shall be deemed a material breach if Charterer shall have obtained in writing, from the appropriate authorities permissions, extensions or equipment be effected continuance to perform any act required of Charterer hereunder, provided Charterer shall perform any and all requirements or conditions set forth in such manner (both as regards workmanship and quality of materials) as to permissions, extensions or continuances. 9.4 Charterer shall not materially diminish the value of the Vessel; (e) not detach or remove any material part offrom, or item of equipment installed on, permit or suffer to be detached or removed from the Vessel unless the part any equipment, accessories, or item so removed is no longer required for the operation of the Vessel or is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest in favor of any person other than Mortgagee (and other than Permitted Liens) and becomes an installation parts on the Vessel and the property of Shipowner and subject to the lien constituted by this Mortgage; (f) submit the Vessel regularly to such periodical or other surveys as may be required for classification purposes and supply to Mortgagee copies of all survey reports issued in respect thereof; (g) permit Mortgagee by surveyors or other persons appointed by it for that purpose to board the Vessel at all reasonable times and on reasonable prior notice, for the purpose of inspecting her condition or papers or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections, provided Mortgagee does not materially interfere with the schedule or operation commencement of the Vessel; (h) promptly furnish to Mortgagee copies term of all such information in the possession this Charter Party or under the control of Shipowner or any of its affiliates, as Mortgagee may from time to time reasonably require regarding the Vessel, her employment, position and engagements, particulars of all towages and salvages and, upon Mortgagee's request in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her; (i) notify Mortgagee forthwith of: (i) any casualty to the Vessel which is or is likely considered to be a Major Casualty;part thereof in accordance with the definition continued in Section 1 hereof, unless any detachment or removal shall be incident to any replacement permitted under Section 10 hereof. (ii) 9.5 Owner shall have the right at any occurrence in consequence whereof time and at its expense, on reasonable notice, to inspect the Vessel has become in order to ascertain whether the Vessel is being properly repaired and maintained and the Charterer shall cause to be made all such repairs, without expense to Owner, as such inspection or is, by survey may show to be required. The Charterer will also permit the passing of time or otherwise, likely Owner to become a Total Loss; (iii) any requirement or recommendation made by any insurer or classification society or by any competent authority affecting class or which would or would be reasonably likely to materially affect the operation of inspect the Vessel; (iv) any arrest of the Vessel or the exercise or purported exercise of any Security Interest on the Vessel or her Insurances or any requisition of the Vessel; (v) any intended drydocking or wetdocking of the Vessel; (vi) an incident of salvage or general average with respect to the Vessel; (vii) any Environmental Claim being or made against Shipowner or otherwise in connection with the Vessel; or (viii) any Environmental Incident occurring, (j) keep proper books of account in respect of the Vessel and as and when Mortgagee may so reasonably require make such books available for inspection on behalf of Mortgagee at reasonable times and 's logs whenever required, on reasonable notice, and shall furnish satisfactory evidence the Owner with full information regarding any material casualties or other accidents or damage to the Vessel. 9.6 If a complaint be filed against the Vessel or the Vessel be otherwise attached, arrested, levied upon or taken into custody under process or color of legal authority or any cause whatsoever, the Charterer will promptly notify Owner by facsimile or by telephone that is confirmed in writing, at the wages address specified in Section 22.1 of this Charter Party, and allotments and the insurance and pension contributions unless such liens were created solely by any act or inaction of the Master Owner, within 15 days from the time of such complaint, attachment, arrest or seizure will cause the Vessel to be released and crew are being regularly paid all Liens thereon to be discharged and will promptly and will promptly notify the Owner in the manner aforesaid. If the Charterer shall fail or neglect to furnish proper security or otherwise release the Vessel from complaint, arrest, levy, seizure, or attachments, the Owner or any person acting on behalf of the Owner may furnish security to release the Vessel and by so doing shall not be deemed to cure the default of the Charterer. 9.7 Charterer acknowledges that this is a Bareboat Charter Party only and that all deductions from crew's wages Charterer has not acquired and shall not acquire during the term of this Charter Party any right, title or interest in respect of tax and/or social security liability are being properly accounted for and that the Master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress; (k) comply in all material respects, or procure such compliance, with all Environmental Laws and Environmental Approvals relating to the Vessel, its operation or management which are and shall at all times remain the business property of Shipowner from time to time; and (l) keep Mortgagee advised, in writing on such regular basis and in such detail as Mortgagee shall reasonably require, of Shipowner's response to every Environmental Claim and Environmental Incidentthe Owner.

MAINTENANCE AND OPERATION OF VESSEL. Shipowner covenants 9.1 Charterer at its own cost and agrees to: (a) expense shall maintain and preserve the Vessel in good running order and repair, so that the Vessel shall bevessel, in so far insofar as due diligence can make her so, is tight, staunch, strong and well and sufficiently tackled, appareled, furnished, equipped equipped. 9.2 Charterer covenants that the vessel will at all times comply with applicable laws, treaties, conventions, rules and in every respect seaworthy regulations issued thereunder, and in good operating condition;will keep on board, when required thereby, valid certificates showing compliance therewith. (b) maintain and preserve 9.3 Charterer will not cause or permit the Vessel consistent with first-class ship-ownership to be operated in any manner contrary to applicable laws, treaties, conventions or rules and management practice regulations and so undertakes to do all such things, without expense to Owner, as to maintain her present class (namely ___________ at _____________[Lloyds Register of Shipping/American Bureau of Shipping]) or an equivalent class with _________________ [Lloyds Register of Shipping/American Bureau of Shipping] or another classification society approved by Mortgagee, which approval shall not be unreasonably withheld, free of recommendations and qualifications affecting class save those notified to and approved in writing by Mortgagee and so as necessary to comply with all applicable laws from time requirements to time applicable to vessels documented under the laws and flag of the United States of America. Mortgagee shall not withhold its approval as to those recommendations or qualifications affecting class which do not prevent the Vessel from remaining in normal passenger service so long as Shipowner executes an undertaking, in form and substance satisfactory to Mortgagee, to take such actions as are necessary to remove same at the Vessel's next scheduled drydock or wetdock but in no event subsequent to a sale of the Vessel pursuant to Section 2.2; (c) not make any modification to the Vessel which would, or would be reasonably likely to, materially alter the structure, type or performance characteristics of the Vessel or materially reduce the value permit lawful operation of the Vessel; (d) procure ; provided, however, that all repairs to or replacement Charterer may in good faith contest the validity and application of any damagedsuch law or rule in any reasonable manner which does not adversely affect the property or rights of Owner hereunder, worn and no technical or lost parts nonsubstantial noncompliance with the provisions of this Section 9.3 shall be deemed a material breach if Charterer shall have obtained, in writing, from the appropriate authorities permissions, extensions or equipment be effected continuances to perform any act required of Charterer hereunder, provided Charterer shall perform any and all requirements or conditions set forth in such manner (both as regards workmanship and quality of materials) as to permissions, extensions or continuances. 9.4 Charterer shall not materially diminish the value of the Vessel; (e) not detach or remove any material part offrom, or item of equipment installed on, permit or suffer to be detached or removed from the Vessel unless the part any equipment, accessories or item so removed is no longer required for the operation of the Vessel or is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest in favor of any person other than Mortgagee (and other than Permitted Liens) and becomes an installation parts on the Vessel and the property of Shipowner and subject to the lien constituted by this Mortgage; (f) submit the Vessel regularly to such periodical or other surveys as may be required for classification purposes and supply to Mortgagee copies of all survey reports issued in respect thereof; (g) permit Mortgagee by surveyors or other persons appointed by it for that purpose to board the Vessel at all reasonable times and on reasonable prior notice, for the purpose of inspecting her condition or papers or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections, provided Mortgagee does not materially interfere with the schedule or operation commencement of the Vessel; (h) promptly furnish to Mortgagee copies term of all such information in the possession this Charter Party or under the control of Shipowner or any of its affiliates, as Mortgagee may from time to time reasonably require regarding the Vessel, her employment, position and engagements, particulars of all towages and salvages and, upon Mortgagee's request in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her; (i) notify Mortgagee forthwith of: (i) any casualty to the Vessel which is or is likely considered to be a Major Casualty;part thereof in accordance with the definition contained in Section 1 hereof, unless any such detachment or removal shall be incident to any replacement permitted under Section 10 hereof. (ii) 9.5 Owner shall have the right at any occurrence in consequence whereof time and at its expense, on reasonable notice, to inspect the Vessel has become in order to ascertain whether the Vessel is being properly repaired and maintained and the Charterer shall cause to be made all such repairs, without expense to Owner, as such inspection or is, by survey may show to be required. The Charterer shall also permit the passing of time or otherwise, likely Owner to become a Total Loss; (iii) any requirement or recommendation made by any insurer or classification society or by any competent authority affecting class or which would or would be reasonably likely to materially affect the operation of inspect the Vessel; (iv) any arrest of the Vessel or the exercise or purported exercise of any Security Interest on the Vessel or her Insurances or any requisition of the Vessel; (v) any intended drydocking or wetdocking of the Vessel; (vi) an incident of salvage or general average with respect to the Vessel; (vii) any Environmental Claim being or made against Shipowner or otherwise in connection with the Vessel; or (viii) any Environmental Incident occurring, (j) keep proper books of account in respect of the Vessel and as and when Mortgagee may so reasonably require make such books available for inspection on behalf of Mortgagee at reasonable times and 's logs, whenever requested, on reasonable notice, and shall furnish satisfactory evidence the Owner with full information regarding any material casualties or other accidents or damage to the Vessel. 9.6 If a complaint be filed against the Vessel or the Vessel be otherwise attached, arrested, levied upon or taken into custody under process or color of legal authority for any cause whatsoever, the Charterer will promptly notify Owner by telecopier or by telephone that is confirmed in writing, at the wages address specified in Section 22.1 of this Charter Party, and allotments and the insurance and pension contributions unless such liens were created solely by any act or inaction of the Master Owner, within 15 days from the time of such complaint, attachment, arrest or seizure will cause the Vessel to be released and crew are being regularly paid all Liens thereon to be discharged and will promptly notify the Owner in the manner aforesaid. If the Charter shall fail or neglect to furnish proper security or otherwise to release the Vessel from complaint, arrest, levy, seizure or attachment, the Owner or the Trustee or any person acting on behalf of the Owner may furnish security to release the Vessel and by so doing shall not be deemed to cure the default of the Charterer. 9.7 Charterer acknowledges that this is a Bareboat Charter Party only and that all deductions from crew's wages Charterer has not acquired and shall not acquire during the term of this Charter Party any right, title or interest in respect of tax and/or social security liability are being properly accounted for and that the Master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress; (k) comply in all material respects, or procure such compliance, with all Environmental Laws and Environmental Approvals relating to the Vessel, its operation or management which are and shall at all times remain the business property of Shipowner from time to time; and (l) keep Mortgagee advised, in writing on such regular basis and in such detail as Mortgagee shall reasonably require, of Shipowner's response to every Environmental Claim and Environmental Incidentthe Owner.

MAINTENANCE AND OPERATION OF VESSEL. Shipowner covenants and agrees to: (a) maintain and preserve the The Vessel in good running order and repair, so that the Vessel shall be, in so far as due diligence can make her so, is tight, staunch, strong and well and sufficiently tackled, appareled, victualed, fitted, manned, furnished, equipped and equipped, and in every respect seaworthy and in good operating condition; (b) running condition and repair and in all respects fit for service. At all times, at its own cost and expense, the Mortgagor will exercise due diligence to maintain and preserve the Vessel consistent in as good condition, working order and repair as at the time of the execution of this First Preferred Ship Mortgage, ordinary wear and tear and depreciation excepted, and will maintain the Vessel in accordance with first-class ship-ownership and management good marine maintenance practice and so as to maintain her present class (namely ___________ at _____________[Lloyds Register of Shipping/American Bureau of Shipping]) procedures and applicable legal or an equivalent class with _________________ [Lloyds Register of Shipping/American Bureau of Shipping] regulatory requirements for the service in which it then is or another classification society approved by Mortgageewill be engaged, which approval shall not be unreasonably withheld, free of recommendations and qualifications affecting class save those notified to and approved in writing by Mortgagee and so as to comply with all applicable laws from time to time applicable to vessels documented under the laws and flag of the United States of America. Mortgagee shall not withhold its approval as to those recommendations or qualifications affecting class which do not prevent the Vessel from remaining in normal passenger service so long as Shipowner executes an undertaking, in form and substance satisfactory to Mortgagee, to take such actions as are necessary to remove same at the Vessel's next scheduled drydock or wetdock but in no event subsequent to a sale of the Vessel pursuant to Section 2.2; (c) not make any modification to the Vessel which would, or would be reasonably likely to, materially alter the structure, type or performance characteristics of the Vessel or materially reduce the value of the Vessel; (d) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not materially diminish the value of the Vessel; (e) not remove any material part of, or item of equipment installed on, the Vessel unless the part or item so removed is no longer required for the operation of the Vessel or is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest in favor of any person other than Mortgagee (and other than Permitted Liens) and becomes an installation on the Vessel and the property of Shipowner and subject will enable her to the lien constituted by this Mortgage; (f) submit the Vessel regularly to pass such periodical or other surveys inspection as may be required for classification purposes by marine underwriters as a condition of their writing such insurance and supply in such amounts as is required under this First Preferred Ship Mortgage. Furthermore, if the vessel is not temporarily laid-up, the Mortgagor will cause the Vessel to Mortgagee copies of all survey reports issued be periodically inspected, drydocked and recoated (hull paint), and its machinery overhauled in respect thereof;accordance with normal marine practices or as may be required by the United States Coast Guard or applicable Classification Society. (gb) permit The Mortgagor shall afford the Mortgagee by surveyors or other persons appointed by it for that purpose its authorized representatives, at their own risk and expense, full and complete access to board the Vessel at all reasonable times and on reasonable prior notice, for the purpose of inspecting the same and her condition cargoes and papers. (c) Mortgagor shall certify as often as required by Mortgagee that all wage and other claims which give rise to liens have been paid, but in the absence of a default or papers or for a potential default, no more often than once a quarter. (d) The Mortgagor will keep the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections, provided Mortgagee does not materially interfere with the schedule or operation Vessel duly documented as a vessel of the Vessel;United States, under the flag of the United States, and will not suffer or permit it to be operated in any manner prohibited by the laws or regulations applicable to the Vessel under its certificate of documentation or its classification, and will duly comply with all laws and governmental regulations and contracts applicable to the Vessel and its operation. Mortgagor will never operate the Vessel outside the navigational limits of the insurance carried pursuant to Article 4. (e) If applicable, Mortgagor shall keep the Vessel in such condition as will entitle her to the highest classification and rating for a Vessel of the same age, trade and type in the American Bureau of Shipping (NABSO) or such other classification society as shall be acceptable to Mortgagee, and, upon request, Mortgagor shall furnish to Mortgagee a certificate by such classification bureau or society in which the Vessel is then entered that such classification is maintained. (f) Mortgagor will furnish Mortgagee within thirty (30) days after receipt by the Mortgagor, copies of all Certificates of Inspection delivered by the United States Coast Guard and/or Inspection Reports with respect to the Vessel delivered by the American Bureau of Shipping, including (as may apply) Annual Classification Surveys, Special Periodic or Continuous Surveys, Annual Load-Line Surveys and Drydock Surveys. (g) Mortgagor shall operate the Vessel in accordance with all restrictions imposed by the United States Coast Guard, and shall maintain a coastwise route in the Atlantic Ocean not more than twenty (20) miles offshore, between Boon Island, Maine and Watch Hill, Rhode Island, and shall carry adult passengers only. (h) promptly furnish to Mortgagee copies of all such information in the possession or under the control of Shipowner or any of its affiliates, as Mortgagee may from time to time reasonably require regarding the Vessel, her employment, position and engagements, particulars of all towages and salvages and, upon Mortgagee's request in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her; (i) notify Mortgagee forthwith of: (i) any casualty to Mortgage shall operate the Vessel which is or is likely to be a Major Casualty; (ii) any occurrence in consequence whereof the Vessel has become or is, accordance with all stability letters issued by the passing of time or otherwise, likely to become a Total Loss; (iii) any requirement or recommendation made by any insurer or classification society or by any competent authority affecting class or which would or would be reasonably likely to materially affect the operation of the Vessel; (iv) any arrest of the Vessel or the exercise or purported exercise of any Security Interest on the Vessel or her Insurances or any requisition of the Vessel; (v) any intended drydocking or wetdocking of the Vessel; (vi) an incident of salvage or general average with respect to the Vessel; (vii) any Environmental Claim being or made against Shipowner or otherwise in connection with the Vessel; or (viii) any Environmental Incident occurring, (j) keep proper books of account in respect of the Vessel and as and when Mortgagee may so reasonably require make such books available for inspection on behalf of Mortgagee at reasonable times and on reasonable notice, and furnish satisfactory evidence that the wages and allotments and the insurance and pension contributions of the Master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the Master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress; (k) comply in all material respects, or procure such compliance, with all Environmental Laws and Environmental Approvals relating to the Vessel, its operation or management and the business of Shipowner from time to time; and (l) keep Mortgagee advised, in writing on such regular basis and in such detail as Mortgagee shall reasonably require, of Shipowner's response to every Environmental Claim and Environmental IncidentUnited States Coast Guard.