Common use of Other undertakings concerning use Clause in Contracts

Other undertakings concerning use. The Lessee shall, and shall procure that each other Transaction Company shall: 9.3.1 avoid the Ship being operated or employed in any manner, trade or business contrary to Environmental Laws and all other laws or regulations, in any such case to the extent that they apply to the Ship, its ownership, operation and management or to the business of the Lessee, or in carrying illicit or prohibited goods or in any manner which would render her liable to condemnation or destruction, seizure, confiscation, penalties, requisition or sanctions or in any manner or trade which would or might reasonably be expected to prejudice the Lessor’s ownership of the Ship unless the Lessee, by virtue of the provisions of the Time Charter as at the date hereof, is not entitled to prevent such operation or employment; 9.3.2 without prejudice to the generality of clause 9.3.1 above, ensure and/or procure that the Ship is properly used and, in particular, but without limitation, that it shall: (a) observe all material recommendations and requirements contained in all handbooks and manuals supplied by or procured from the Builder or the manufacturer or the supplier of components for the Ship relating to the proper use of the Ship; and (b) ensure that the Ship is operated in accordance with the appropriate regulations and recommendations of all competent authorities of the flag state and the jurisdictions in or to which the Ship is employed or trades from time to time pursuant to the terms of this Agreement and of the Classification Society. 9.3.3 without prejudice to the generality of clause 9.3.1 above, throughout the Lease Period (and shall procure that any Approved Manager takes all necessary action to): (a) procure implementation and maintenance of a safety management system (SMS) which complies with the ISM Code, the flag state of the Ship and the Ship’s Classification Society, which may from time to time be of mandatory application to the Ship and/or the Lessor and/or the Lessee and/or any other Transaction Company; (b) procure the obtaining and maintenance in force at all times of valid certificates evidencing compliance with the requirements of clause 9.3.3(a) above, including, without limitation, a valid Document of Compliance in relation to the Approved Manager and a valid Safety Management Certificate in respect of the Ship as required by the ISM Code; (c) provide the Lessor, at its request, with copies of any such Document of Compliance, Safety Management Certificate and/or International Ship Security Certificate upon issuance; (d) if and to the extent required pursuant to the ISM Code, keep or procure that there is kept on board the Ship at all times a copy of any such Document of Compliance and the original of any such Safety Management Certificate; and (e) ensure that: (i) the Ship has a valid International Ship Security Certificate; (ii) the Ship’s security system and its associated security equipment comply with section 19.1 of Part A of the ISPS Code; (iii) the Ship’s security system and its associated security equipment comply in all respects with the applicable requirements of Chapter XI-2 of SOLAS and Part A of the ISPS Code; and (iv) an approved ship security plan is in place; 9.3.4 without prejudice to the generality of clause 9.3.1 above, in the event of the Ship (and for so long as it is) operating in or into or off-shore from the United States of America or in United States waters, obtain and maintain all Certificates of Financial Responsibility or any equivalent evidence or certificate which may be required from time to time and such other documentation as may be required by the US Coast Guard or any other relevant US authority and, if so requested by the Lessor, provide copies of Certificates of Financial Responsibility or any equivalent evidence or certificate which may be required from time to time to the Lessor and take all reasonable precautions to prevent any infringements of the Anti-Drug Abuse Act of 1986 of the United States of America or any similar legislation applicable to the Ship in the flag state or in any jurisdiction in or to which the Ship may be employed or trade from time to time; 9.3.5 not at any time represent or hold out the Lessor as carrying goods or persons on the Ship or being in any way connected or associated with any operation or carriage whether for charter or reward or gratuity or gratuitously which may be undertaken by the Lessee during the Lease Period nor shall the Lessee represent itself as the agent of the Lessor for such purpose; 9.3.6 in the event of hostilities in any part of the world, avoid the Ship entering or trading to any zone which is declared a war zone or excluded area by any government or by the Ship’s war risks insurers unless the Lessee has (at its expense) effected special, additional or modified insurance cover necessary to keep the Ship properly insured in accordance with this Agreement notwithstanding such entry into a war zone and, either prior to or promptly after such entry, shall have submitted the same to the Lessor to enable the Lessor to verify that such further insurances do meet such requirements and shall have ensured that all requirements under or pursuant to this Agreement in relation thereto shall have been complied with and provided further that if the Ship is in a zone when it is declared a war zone or excluded area by the Ship’s war risk insurers or any government the Lessee shall forthwith at its own expense effect special, additional or modified insurance as necessary to keep the Ship insured in accordance with this Agreement and shall then notify the Lessor in writing giving details of such insurances. The requirements of this clause 9.3.6 shall be deemed satisfied if the Ship is held covered under a relevant government programme (by which is meant an insurance or an indemnity programme on terms acceptable to the Lessor, having regard to the insurance requirements set forth in this Agreement, of any member of the European Union and/or the United States of America or any other country approved by the Lessor); and 9.3.7 pay all tolls, dues and other outgoings whatsoever in respect of the Ship and the Insurances and keep proper books of account in respect of the Ship and, as and when the Lessor may so require, make such books available for inspection on behalf of the Lessor.