Common use of Restrictions on chartering, appointment of managers etc Clause in Contracts

Restrictions on chartering, appointment of managers etc. The Borrower shall not: (a) let the Ship on demise charter for any period; (b) save for any Charter or Replacement Charter, enter into any time or consecutive voyage charter in respect of the Ship for a term which exceeds, or which by virtue of any optional extensions may exceed, 13 months; (c) save for any Charter or Replacement Charter, enter into any charter in relation to the Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; (d) save for any Charter or Replacement Charter, charter the Ship otherwise than on bona fide arm’s length terms at the time when the Ship is fixed; (e) appoint a manager of the Ship other than an Approved Manager (and then provided that that Approved Manager has provided to the Security Trustee the undertaking referred to in Schedule 4, Part B, Paragraph 4(a)) nor agree to any material alteration to the terms of any Approved Manager’s appointment; (f) de-activate or lay up the Ship; or (g) put the Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $5,000,000 (or the equivalent in any other currency) unless the Borrower has established to the reasonable satisfaction of the Agent that the Borrower has sufficient reserves to pay for the cost of such work.

Restrictions on chartering, appointment of managers etc. The Borrower shall not: (a) let the Ship on demise charter for any period; (b) save for any Charter or Replacement Charter, enter into any time or consecutive voyage charter in respect of the Ship for a term which exceeds, or which by virtue of any optional extensions may exceed, 13 months; (c) save for any Charter or Replacement Charter, enter into any charter in relation to the Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; (d) save for any Charter or Replacement Charter, charter the Ship otherwise than on bona fide arm’s length terms at the time when the Ship is fixed; (e) appoint a manager of the Ship other than an Approved Manager (and then provided that that Approved Manager has provided to the Security Trustee the undertaking referred to in Schedule 4, Part B3, Paragraph 4(a9(a)) nor agree to any material alteration to the terms of any Approved Manager’s appointment; (f) de-activate or lay up the Ship; or (g) put the Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $5,000,000 (or the equivalent in any other currency) unless the Borrower has established to the reasonable satisfaction of the Agent that the Borrower has sufficient reserves to pay for the cost of such work.

Restrictions on chartering, appointment of managers etc. The Borrower None of the Borrowers shall, in relation to the Ship owned by it (and shall not:procure that no Collateral Owner shall, in relation to the Tasman Ship owned by it): (a) let the in respect of Ship on demise charter for any period; (b) save for any Charter or Replacement CharterA, enter into any time or consecutive voyage charter in respect of the Ship A for a term which exceeds, or which by virtue of any optional extensions may exceedexceed 12 months (+/- 45 days) unless Borrower A uses commercially reasonable efforts to ensure that such charter contains a “sales clause” entitling Borrower A to sell Ship A subject to the consent of the charterer, 13 monthssuch consent not to be unreasonably withheld, (b) let that Ship on demise charter for any period; (c) save for any Charter or Replacement Charter, enter into any charter in relation to the that Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; (d) save for any Charter or Replacement Charter, charter the that Ship otherwise than on bona fide arm’s length terms at the time when the that Ship is fixed; (e) appoint a manager of the that Ship other than an the Approved Manager (and then provided that that Approved Manager has provided to the Security Trustee the undertaking referred to in Schedule 4, Part B, Paragraph 4(a)) nor Managers or agree to any material alteration to the terms of the Approved Managers’ appointment (save for any Approved Manager’s appointmentalteration required in connection with the Merger); (f) de-activate or lay up the that Ship; or (g) put the that Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $5,000,000 500,000 (or the equivalent in any other currency) unless the Borrower that person has established first given to the reasonable satisfaction of the Agent Security Trustee and in terms satisfactory to it a written undertaking not to exercise any lien on that the Borrower has sufficient reserves to pay Ship or its Earnings for the cost of such workwork or for any other reason.

Restrictions on chartering, appointment of managers etc. The Neither Borrower shall notshall, in relation to the Ship owned by it: (a) let the that Ship on demise charter for any period; (b) save for any Charter or Replacement Charter, enter into any time or consecutive voyage charter in respect of the that Ship for a term which exceeds, or which by virtue of any optional extensions may exceed, 13 months; (c) save for any Charter or Replacement Charter, enter into any charter in relation to the that Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; (d) save for any Charter or Replacement Charter, charter the that Ship otherwise than on bona fide arm’s length terms at the time when the that Ship is fixed; (e) appoint a manager of the that Ship other than an Approved Manager (and then provided that that Approved Manager has provided to the Security Trustee the undertaking referred to in Schedule 4, Part B, Paragraph 4(a)) nor agree to any material alteration to the terms of any Approved Manager’s appointment; (f) de-activate or lay up the that Ship; or (g) put the that Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $5,000,000 (or the equivalent in any other currency) unless the that Borrower has established to the reasonable satisfaction of the Agent that the that Borrower has sufficient reserves to pay for the cost of such work.

Restrictions on chartering, appointment of managers etc. The Borrower shall notNone of the Borrowers shall, in relation to the Ship owned by it: (a) let the Ship on demise charter for in respect of any period; (b) save for any Charter or Replacement CharterTasman Ship, enter into any time or consecutive voyage charter in respect of the any Tasman Ship for a term which exceeds, or which by virtue of any optional extensions may exceedexceed 12 months (+/- 45 days) unless (i) such charter contains a “sales clause” entitling the Borrower owning that Tasman Ship to sell its Tasman Ship subject to the consent of the charterer, 13 monthssuch consent not to be unreasonably withheld and (ii) the last day of the charter period (including any optional extensions) does not fall after the Final Maturity Date in respect of Tranche B; (b) let that Ship on demise charter for any period; (c) save for any Charter or Replacement Charter, enter into any charter in relation to the that Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; (d) save for any Charter or Replacement Charter, charter the that Ship otherwise than on bona fide arm’s length terms at the time when the that Ship is fixed; (e) appoint a manager of the that Ship other than an the Approved Manager (and then provided that that Approved Manager has provided to the Security Trustee the undertaking referred to in Schedule 4, Part B, Paragraph 4(a)) nor Managers or agree to any material alteration to the terms of any the Approved Manager’s Managers’ appointment; (f) de-activate or lay up the that Ship; or (g) put the that Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed $5,000,000 500,000 (or the equivalent in any other currency) unless the Borrower that person has established first given to the reasonable satisfaction of the Agent Security Trustee and in terms satisfactory to it a written undertaking not to exercise any lien on that the Borrower has sufficient reserves to pay Ship or its Earnings for the cost of such workwork or for any other reason.