Common use of Maintenance of Vessels Clause in Contracts

Maintenance of Vessels. (a) The Mortgagor will at all times, without cost or expense to the Mortgagee, maintain and preserve the Vessels in all material respects, and cause the Vessels in all material respects to be tight, staunch, strong and well and sufficiently tackled, appareled, victualed, fitted, manned, furnished and equipped and to be maintained and preserved, in good running order and repair so that the Vessels in all material respects shall be well equipped and seaworthy, in good working order, repair and operating condition, ordinary wear and tear excepted. At all times, at its own cost and expense, the Mortgagor will exercise due diligence to maintain and preserve the Vessels in all material respects in as good condition, working order and repair as at the time of the execution of this Fleet Mortgage, ordinary wear and tear and depreciation excepted, and will maintain the Vessels in all material respects in accordance with good marine maintenance practice and procedures and applicable legal or regulatory requirements for the service in which they then are or will be engaged, and in such condition as will enable the Vessels in all material respects to pass such inspection as may be required by marine underwriters as a condition of their writing such insurance and in such amounts as is required under this Fleet Mortgage. Furthermore, the Mortgagor will cause each Vessel to be periodically inspected, drydocked and recoated (hull paint), and its machinery overhauled in accordance with normal marine practices or as may be required by the United States Coast Guard. At the request of the Mortgagee, the Mortgagor shall cause a marine surveyor satisfactory to the Mortgagee to perform a survey, inspection or other actions as may be necessary on a representative sample of the Vessels (the number or location of such Vessels included in such representative sample to be determined by the Mortgagee in its discretion), to prove or establish that the Vessels in all material respects have been maintained and preserved in accordance with the provisions of this Section 2.10(a). In addition, the Mortgagor shall provide at the end of each six-month period commencing six weeks following the date hereof to the Mortgagee a certificate of the chief marine operations officer (currently James J. Farley, Senior Vice President Transportation Services) of thx Xxxxxxxxx xxxting that the Vessels have been maintained and preserved in accordance with the requirements of this Section 2.10(a). (b) The Mortgagor may make structural changes, alterations or additions to the Vessels, or any of them, but only to the extent that any such change, alteration or addition is made at the Mortgagor's expense and risk and does not diminish the value, utility, capacity, operating condition and seaworthiness of the applicable Vessel. (c) The Mortgagor shall certify as often as required by the Mortgagee that all wage and other claims which give rise to Liens have been paid. (d) The Mortgagor shall furnish the Mortgagee within fifteen (15) days after receipt by the Mortgagor, copies of all Certificates of Inspection delivered by the United States Coast Guard. (e) At the request of the Mortgagee, the Mortgagor shall at its expense deliver to the Mortgagee an appraisal of the current charter-free fair market value (determined on the basis of a willing buyer and willing seller) in Dollars of each Vessel by an independent valuer acceptable to the Mortgagee.

Maintenance of Vessels. (a) The Mortgagor Except while such Vessel is undergoing repairs, maintenance or is stacked or in lay up, the Shipowner will at all times, times and without cost or expense to the Mortgagee, Mortgagee maintain and preserve the Vessels in all material respectspreserve, and or cause the Vessels in all material respects to be maintained and preserved, each Vessel in good running order and repair, so that each Vessel shall be, insofar as due diligence can make it so, tight, staunch, strong and well and sufficiently tackled, appareled, victualedfurnished, fitted, manned, furnished and equipped and in every respect seaworthy and in good operating condition and fit for its intended service; and will keep each Vessel, or cause it to be maintained and preserved, in good running order and repair so that the Vessels in all material respects shall be well equipped and seaworthy, in good working order, repair and operating condition, ordinary wear and tear excepted. At all times, at its own cost and expense, the Mortgagor will exercise due diligence to maintain and preserve the Vessels in all material respects in as good condition, working order and repair as at the time of the execution of this Fleet Mortgage, ordinary wear and tear and depreciation excepted, and will maintain the Vessels in all material respects in accordance with good marine maintenance practice and procedures and applicable legal or regulatory requirements for the service in which they then are or will be engaged, and kept in such condition as will enable entitle it to at least the Vessels current classification and rating for each Vessel in the American Bureau of Shipping, or other classification society of like standing. The Shipowner will at all times keep each Vessel (other than a Vessel that is stacked or in lay up) in such condition to ensure that it maintains its current classification rating from the American Bureau of Shipping, and the Shipowner shall furnish to the Mortgagee annually, commencing July 30, 2005, a certificate from the American Bureau of Shipping confirming that such classification has been maintained. Each Vessel shall, and the Shipowner covenants that it will, at all times comply in all material respects with all applicable laws, treaties and conventions to pass such inspection as may be required by marine underwriters as a condition of their writing such insurance and in such amounts as is required under this Fleet Mortgage. Furthermore, the Mortgagor will cause each Vessel to be periodically inspected, drydocked and recoated (hull paint), and its machinery overhauled in accordance with normal marine practices or as may be required by which the United States Coast Guardof America is a party, and rules and regulations issued thereunder, and shall have on board as and when required thereby valid certificates showing compliance therewith. At The Shipowner will not make, or permit to be made, any substantial change in the request structure, rig or type of any Vessel that would materially diminish the value of such Vessel without first receiving the written consent of the Mortgagee, the Mortgagor which consent shall cause a marine surveyor satisfactory to the Mortgagee to perform a survey, inspection or other actions as may not be necessary on a representative sample of the Vessels (the number or location of such Vessels included in such representative sample to be determined by the Mortgagee in its discretion), to prove or establish that the Vessels in all material respects have been maintained and preserved in accordance with the provisions of this Section 2.10(a). In addition, the Mortgagor shall provide at the end of each six-month period commencing six weeks following the date hereof to the Mortgagee a certificate of the chief marine operations officer (currently James J. Farley, Senior Vice President Transportation Services) of thx Xxxxxxxxx xxxting that the Vessels have been maintained and preserved in accordance with the requirements of this Section 2.10(a)unreasonably withheld. (b) The Mortgagor may make structural changes, alterations or additions to the Vessels, or So long as any of themthe Obligations are outstanding, but only the Shipowner will cause each Vessel (other than any Vessel that is then stacked or in lay up) to be repaired and overhauled as the extent that any need arises in order to keep such change, alteration or addition is made at the Mortgagor's expense Vessel well maintained and risk and does not diminish the value, utility, capacity, operating condition and seaworthiness of the applicable Vesselin seaworthy condition. (c) The Mortgagor shall certify as often as required by the Mortgagee that all wage and other claims which Shipowner will promptly, but in any event within forty-eight (48) hours thereof, give rise to Liens have been paid. (d) The Mortgagor shall furnish the Mortgagee within fifteen (15) days after receipt by the Mortgagor, copies of all Certificates of Inspection delivered by the United States Coast Guard. (e) At the request of the Mortgagee, the Mortgagor shall at its expense deliver notice to the Mortgagee if any Vessel is put into the possession of any yard for the purpose of repairs in an appraisal amount exceeding or likely to exceed ten percent (10%) of the current charter-free fair market insured total loss value (determined on the basis of a willing buyer and willing seller) in Dollars of each such Vessel by an independent valuer acceptable to the Mortgageeat any time.

Maintenance of Vessels. (a) The Mortgagor will at all times, without cost or expense to the Mortgagee, maintain and preserve the Vessels in all material respects, and cause the Vessels in all material respects to be tight, staunch, strong and well and sufficiently tackled, appareled, victualed, fitted, manned, furnished and equipped and to be maintained and preserved, in good running order and repair so that the Vessels in all material respects shall be well equipped and seaworthy, in good working order, repair and operating condition, ordinary wear and tear excepted. At all times, at its own cost and expense, the Mortgagor will exercise due diligence to maintain and preserve the Vessels in all material respects in as good condition, working order and repair as at the time of the execution of this Fleet Mortgage, ordinary wear and tear and depreciation excepted, and will maintain the Vessels in all material respects in accordance with good marine maintenance practice and procedures and applicable legal or regulatory requirements for the service in which they then are or will be engaged, and in such condition as will enable the Vessels in all material respects to pass such inspection as may be required by marine underwriters as a condition of their writing such insurance and in such amounts as is are required under this Fleet Mortgage. Furthermore, the Mortgagor will cause each Vessel to be periodically inspected, drydocked and recoated (hull paint), and its machinery overhauled in accordance with normal marine practices or as may be required by the United States Coast Guard. At the request of the Mortgagee, the Mortgagor shall cause a marine surveyor satisfactory to will permit any representatives designated by the Mortgagee to perform a survey, inspection or other actions as may be necessary on a representative sample conduct appraisals of the Vessels and Inventory and pay the reasonable fees and expenses in connection therewith (the number or location except that so long no Event of such Vessels included in such representative sample Default exists and is continuing, Mortgagor shall only be required to be determined by reimburse the Mortgagee for two (2) Vessel Appraisals (provided, that not more than one (1) such Vessel Appraisal shall be a physical appraisal) per calendar year, unless at any time during such year a Covenant Testing Trigger Period occurs, in its discretionwhich case Mortgagor shall then be required to reimburse Mortgagee for three (3) Vessel Appraisals and three (3) appraisals of Inventory per calendar year); provided that if any Event of Default has occurred and is continuing then no such limitation on Mortgagor’s reimbursement obligations shall apply. Unless an Event of Default has occurred and is continuing, to prove Mortgagee shall not request such a survey or establish that the Vessels in all material respects have been maintained and preserved in accordance with the provisions of this Section 2.10(a)inspection more than once per calendar year. In addition, the Mortgagor shall provide at the end of each six-month period commencing six weeks following the date hereof to the Mortgagee Mortgagee, a certificate of an officer of Mortgagor (designated in writing by the chief marine operations officer (currently James J. Farley, Senior Vice President Transportation ServicesMortgagor to the Mortgagee) of thx Xxxxxxxxx xxxting stating that the Vessels have been maintained and preserved in accordance with the requirements of this Section 2.10(a). (b) The Mortgagor may make structural changes, alterations or additions to the Vessels, or any of them, but only to the extent that any such change, alteration or addition is made at the Mortgagor's ’s expense and risk and does not materially diminish the value, utility, capacity, operating condition and seaworthiness of the applicable Vessel. (c) The Mortgagor shall certify as often as required by the Mortgagee that all wage and other claims which give rise to Liens have been paidpaid in the ordinary course of business. (d) The Upon the Mortgagee’s request the Mortgagor shall furnish the Mortgagee within fifteen (15) days after receipt by the Mortgagor, copies of all Certificates of Inspection delivered by the United States Coast Guard. (e) At the request of the Mortgagee, the Mortgagor shall at its expense deliver to the Mortgagee an appraisal of the current charter-free fair market value (determined on the basis of a willing buyer and willing seller) in Dollars of each Vessel by an independent valuer acceptable to the Mortgagee.