Contract

Exhibit 10.8

 

 

1.	Date of Agreement 31 MAY 2013	THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) STANDARD SHIP MANAGEMENT AGREEMENT CODE NAME: “XXXXXXX 98” Part I
2.	Owners (name, place of registered office and law of registry) (CI. 1)	3.	Managers (name, place of registered office and law of registry) (CI. 1)
	Name XXXXXXX SHIPPING CO.		Name Costamare Shipping Company S.A.
	Place of registered office Monrovia, Republic of Liberia		Place of registered office Panama City, Republic of Panama
	Law of registry Republic of Liberia		Law of registry Republic of Panama
4.	Day and year of commencement of Agreement (Cl. 2) Upon delivery to Owners under Shipbuilding Contract dd 20.04.2011 between Owners and Sungdong Shipbuilding & Marine Engineering Co., Ltd. as amanded and/or supplemented
5.	Crew Management (state “yes” or “no” as agreed) (Cl. 3.1) YES	6.	Technical Management (state “yes” or “no” as agreed) (Cl. 3.2) YES
7.	Commercial Management (state “yes” or “no” as agreed) (Cl. 3.3) YES	8.	Insurance Arrangements (state “yes” or “no” as agreed) (Cl. 3.4) YES
9.	Accounting Services (state “yes” or “no” as agreed) (CI. 3.5) YES	10.	Sale or purchase of the Vessel (state “yes” or “no” as agreed) (Cl. 3.6) YES
11.	Provisions (state “yes” or “no” as agreed) (Cl. 3.7) YES	12.	Bunkering (state “yes” or “no” as agreed) (Cl. 3.8) YES
13.	Chartering Services Period (only to be filled in if “yes” stated in Box 7) (Cl. 3.3(i)) 36 months (including any optional exentsions applicable) and with a gross daily rate (or time charter equivalent) of US$ 45,000	14.	Owners’ Insurance (state alternative (i), (ii) or (iii) of Cl. 6.3) Clause 6.3(ii)
15.	Annual Management Fee (state annual amount) (Cl. 8.1) See Clause 8.1	16.	Severance Costs (state maximum amount) (Cl. 8.4(ii)) not applicable
17.	Day and year of termination of Agreement (Cl. 17) see Clause 17	18.	Law and Arbitration (state alternative 19.1, 19.2 or 19.3; if 19.3 place of arbitration must be stated) (Cl. 19) see Clause 19.1
19.	Notices (state postal and cable address, telex and telefax number for serving notice and communication to the Owners) (Cl. 20) C/o Costamare Inc. 00 Xxxxxxxx Xxxxxx & Xxxxxxx Xxxxxx Xxxxxx, Xxxxxx Telefax: x00 000 000 0000 Attention: Chief Executive Officer	20.	Notices (state postal and cable address, telex and telefax number for serving notice and communication to the Managers) (Cl. 20) 00 Xxxxxxxx Xxxxxx & Xxxxxxx Xxxxxx Xxxxxx, Xxxxxx Telefax: x00 000 000 0000 Attention: Chief Executive Officer
It is mutually agreed between the party stated in Box 2 and the party stated in Box 3 that this Agreement consisting of PART I and PART II as well as Annexes “A” (Details of Vessel), “B” (Details of Crew), “C” (Budget) and “D” (Associated vessels) attached hereto, shall be performed subject to the conditions contained herein. In the event of a conflict of conditions, the provisions of PART I and Annexes “A”, “B”, “C” and “D” shall prevail over those of PART II to the extent of such conflict but no further..
Signature(s) (Owners)         /s/ XXXXXXX SHIPPING CO.		Signature(s) (Managers)         /s/ COSTAMARE SHIPPING COMPANY S.A.

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

ANNEX “A” (DETAILS OF VESSEL OR VESSELS) TO
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “XXXXXXX 98”

Date of Agreement:
31 MAY 2013
Name of Vessel(s):
VALUE
Particulars of Vessel(s):
Flag: Malta
IMO NO.: 9628166
GT: 95,390
NT: 56,260

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

ANNEX “B” (DETAILS OF CREW) TO
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “XXXXXXX 98”

Date of Agreement:

Details of Crew:

Numbers Rank Nationality

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

ANNEX “C” (BUDGET) TO
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “XXXXXXX 98”

Date of Agreement:

Managers’ Budget for the first year with effect from the Commencement Date of this Agreement:

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

ANNEX “D” (ASSOCIATED VESSELS) TO
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “XXXXXXX 98”

NOTE: PARTIES SHOULD BE AWARE THAT BY COMPLETING THIS ANNEX “D” THEY WILL BE SUBJECT TO THE PROVISIONS OF SUB-CLAUSE 18.1(i) OF THIS AGREEMENT.

Date of Agreement:

Details of Associated Vessels:

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

PART II

“XXXXXXX 98” Standard Ship Management Agreement

1.	Definitions	1
	In this Agreement save where the context otherwise requires,	2
	the following words and expressions shall have the meanings	3
	hereby assigned to them.	4
	“Owners” means the party identified in Box 2.	5
	“Managers” means the party identified in Box 3.	6
	“Vessel” means the vessel or vessels details of which are set	7
	out in Annex “A” attached hereto.	8
	“Business Day” shall have the same meaning as ascribed
	thereto in Section 1.1 of the Group Management Agreement.
	“Crew” means the Master, officers and ratings employed on the	9
	Vessel from time to timeof the numbers,
	rank and nationality specified in Annex “B” attached hereto.	10
	“Crew Support Costs” means all expenses of a general nature	11
	which are not particularly referable to any individual vessel for	12
	the time being managed by the Managers and which are incurred	13
	by the Managers for the purpose of providing an efficient and	14
	economic management service and, without prejudice to the	15
	generality of the foregoing, shall include the cost of crew standby	16
	pay, training schemes for officers and ratings, cadet training	17
	schemes, sick pay, study pay, recruitment and interviews.	18
	“Related Manager” shall have the meaning as ascribed thereto in Section 1.1 of the Group Management Agreement.	19
	“Severance Costs” means the costs which the employers are
	legally obliged to pay to or in respect of the Crew as a result of	20
	the early termination of any employment contract for service on	21
	the Vessel.	22
	“Crew Insurances” means insurances against crew risks which	23
	shall include but not be limited to death, sickness, repatriation,	24
	injury, shipwreck unemployment indemnity and loss of personal	25
	effects.	26
	“Group Management Agreement” means the agreement dated 3
	November 2010 made between the Parent and the Managers.
	“Management Services” means the services specified in sub-	27
	clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12.	28
	“ISM Code” means the International Management Code for the	29
	Safe Operation of Ships and for Pollution Prevention as adopted	30
	by the International Maritime Organization (IMO) by resolution	31
	A.741(18) or any subsequent amendment thereto.	32
	“ISPS Code” means the International Ship and Port Facility
	Security Code constituted pursuant to resolution A.924(22) of
	the International Maritime Organisation now set out in Chapter
	XI-2 of the International Convention for the Safety of Life at Sea
	(SOLAS) 1974 (as amended) and the mandatory ISPS Code as
	adopted by a Diplomatic Conference of the International
	Maritime Organisation on Maritime Security in December 2002
	and includes any amendments or extensions to it and any
	regulation issued pursuant to it.
	“Parent” means Costamare Inc. of Trust Company Complex,
	Ajeltake Road, Ajeltake Island, Majuro, Republic of the Xxxxxxxx
	Xxxxxxx XX00000.
	“STCW 95” means the International Convention on Standards	33
	of Training, Certification and Watchkeeping for Seafarers, 1978,	34
	as amended in 1995 or any subsequent amendment thereto.	35
2.	Appointment of Managers	36
	With effect from the day and year stated in Box 4 and continuing	37
	unless and until terminated provided herein, the Owners	38
	hereby appoint the Managers as the technical and commercial managers of the Vessel and the Managers hereby agree	39
	to act as the technical and commercial Mmanagers of the Xxxxxx.	00
0.	Basis of Agreement	41
	Subject to the terms and conditions herein provided, during the	42
	period of this Agreement, the Managers shall carry out	43
	Management Services in respect of the Vessel as agents for	44
	and on behalf of the Owners. Subject to Section 4.6 of the Group Management Agreement, Tthe Managers shall have authority	45
	to take such actions as they may from time to time in their absolute	46
	discretion consider to be necessary to enable them to perform	47
	this Agreement in accordance with sound ship management	48

	practice.		49
	3.1	Crew Management	50
	(only applicable if agreed according to Box 5)		51
	The Managers shall provide suitably qualified Crew for the Vessel		52
	as required by the Owners in accordance with the STCW 95		53
	requirements, provision of which includes but is not limited to		54
	the following functions:		55
	(i)	selecting and engaging the Vessel’s Crew, including payroll	56
		arrangements, pension administration, and insurances for	57
		the Crew other than those mentioned in Clause 6;	58
	(ii)	ensuring that the applicable requirements of the law of the	59
		flag of the Vessel are satisfied in respect of xxxxxxx levels,	60
		rank, qualification and certification of the Crew and	61
		employment regulations including Crew’s tax, social	62
		insurance, discipline and other requirements;	63
	(iii)	ensuring that all members of the Crew have passed a medical	64
		examination with a qualified doctor certifying that they are fit	65
		for the duties for which they are engaged and are in possession	66
		of valid medical certificates issued in accordance with	67
		appropriate flag State requirements. In the absence of	68
		applicable flag State requirements the medical certificate shall	69
		be dated not more than three months prior to the respective	70
		Crew members leaving their country of domicile and	71
		maintained for the duration of their service on board the Vessel;	72
	(iv)	ensuring that the Crew shall have a command of the English	73
		language of a sufficient standard to enable them to perform	74
		their duties safely;	75
	(v)	arranging transportation of the Crew, including repatriation,	76
	board and lodging as and when required at rates and types of
	accommodations as customary in the industry;
	(vi)	training of the Crew and supervising their efficiency;	77
	(vii)	keeping and maintaining full and complete records of any	78
	labor agreements which may be entered into with the Crew and,
	if applicable, conducting union negotiations;
	(viii)	operating the Managers’ drug and alcohol policy unless	79
		otherwise agreed in writing.	80
	3.2	Technical Management	81
	(only applicable if agreed according to Box 6)		82
	The Managers shall provide technical management which		83
	includes, but is not limited to, the following functions:		84
	(i)	provision of competent personnel to supervise the	85
		maintenance and general efficiency of the Vessel;	86
	(ii)	arrangement and supervision of dry dockings, repairs,	87
		alterations and the upkeep of the Vessel to the standards	88
		required by the Owners provided that the Managers shall	89
		be entitled to incur the necessary expenditure to ensure	90
		that the Vessel will comply with the law of the flag of the	91
		Vessel and of the places where she trades, and all	92
		requirements and recommendations of the classification	93
		society;	94
	(iii)	arrangement of the supply of necessary stores, spares and	95
		lubricating oil;	96
	(iv)	appointment of surveyors and technical consultants as the	97
		Managers may consider from time to time to be necessary;	98
	(v)	development, implementation and maintenance of a Safety	99
		Management System (SMS) in accordance with the ISM	100
		Code (see sub-clauses 4.2 and 5.3) and of a security system in	101
		accordance with the ISPS Code; (vi) handling any claims against the builder of the Vessel arising out of the relevant shipbuilding contract, if applicable; and (vii) on request by the Owners, providing the Owners with a copy of any inspection report, survey, valuation or any other similar report prepared by any shipbrokers, surveyors, the Class etc..
	3.3	Commercial Management	102
	(only applicable if agreed according to Box 7)		103
	The Managers shall provide the commercial operation of the		104

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

PART II

“XXXXXXX 98” Standard Ship Management Agreement

	Vessel, as required by the Owners, which includes, but is not		105
	limited to, the following functions:		106
	(i)	providing chartering services in accordance with the Owners’	107
		instructions which include, but are not limited to, seeking	108
		and negotiating employment for the Vessel and the conclusion	109
		(including the execution thereof) of charter parties or other	110
		contracts relating to the employment of the Vessel, which on a voyage, time, demise, contract of affreightment or other basis.  If such a	111
		contract exceeds the period and is for a rate that is less than the rate, in either case, stated in Box 13, consent thereto	112
		in writing shall be first obtained from the Owners.	113
	(ii)	arranging of the proper payment to Owners or their nominees	114
		of all hire and/or freight revenues or other moneys of	115
		whatsoever nature to which Owners may be entitled arising	116
		out of the employment of or otherwise in connection with the	117
		Vessel;.	118
	(iii)	providing voyage estimates and accounts and calculating of	119
		hire, freights, demurrage and/or despatch moneys due from	120
		or due to the charterers of the Vessel;	121
	(iv)	issuing to the Crew of appropriate voyage instructions and	122
	monitoring voyage performance;
	(v)	appointing agents;	123
	(vi)	appointing stevedores;	124
	(vii)	arranging surveys associated with the commercial operation	125
		of the Vessel;	126
		(viii) carrying out the necessary communications with the shippers, charterers and others involved with the receiving and handling of the Vessel at the relevant loading and discharging ports, including sending any notices required under the terms of the Vessel’s employment at the time; (ix) invoicing on behalf of the Owners all freights. hires, demurrages, outgoing claims, refund of taxes, balances of disbursements, statements of account and other sums due to the Owners and account receivables arising from the operation of the Vessel and, upon the request of the Owners, issuing releases on behalf of the Owners upon receipt of payment or settlement of any Such amounts; (x) preparing off-hire statements andlor hire statements; (xi) procuring and arranging for port entrance and clearance, pilots, consular approvals and other services necessary for the management and safe operation of the Vessel; and (xii) reporting to the Owners of any major casualties, damages received or caused by the Vessel or any major release or discharge of oil or other hazardous material not in compliance with any laws.
	3.4	Insurance Arrangements’	127
	(only applicable if agreed according to Box 8)		128
	The Managers shall arrange insurances in accordance with		129
	Clause 6, on such terms and conditions as the Owners shall		130
	have instructed or agreed, in particular regarding underwriters, conditions,		131
	insured values, deductibles and franchises.		132
	3.5	Accounting Services	133
	(only applicable if agreed according to Box 9)		134
	Without prejudice to the relevant provisions of the Group		135
	Management Agreement and, in particular, but without
	limitation, Section 4.11 and Section 10.6 thereof, Tthe Managers shall:
	(i)	establish an accounting system which meets the	136
		requirements of the Owners and provide regular accounting	137
		services, supply regular reports and records,	138
	(ii)	maintain the records of all costs and expenditure incurred	139
		as well as data necessary or proper for the settlement of	140
		accounts between the parties.	141
	3.6	Sale or Purchase of the Vessel	142
	(only applicable if agreed according to Box 10)		143
	The Managers shall, in accordance with the Owners’ instructions,		144
	supervise the sale or purchase of the Vessel, including the		145
	performance of any sale or purchase agreement, but not		146

	negotiation of the same. The Managers shall, on the request of the Owners, either directly or by employing the services of a broker, endeavor to procure a buyer for the Vessel at a price and otherwise on terms acceptable to the Owners.		147
	3.7	Provisions (only applicable if agreed according to Box 11)	148
	The Managers shall arrange for the supply of provisions.		149
	3.8	Bunkering (only applicable if agreed according to Box 12)	150
	The Managers shall arrange for the provision of bunker fuel of the		151
	quality specified by the Owners as required for the Vessel’s trade.		152
4.	Managers’ Obligations		153
	4.1	Without prejudice to the relevant provisions of the Group	154
	Management Agreement and in particular, but without limitation to the foregoing, the provisions of Section 2.3, Section 4.1, Section 4.5 and Section 4.7 thereof.  Tthe Managers undertake to use their best endeavours commercially reasonable efforts to
	provide the agreed Management Services as agents for and on		155
	behalf of the Owners in accordance with sound ship management		156
	practice and to protect and promote the interests of the Owners in		157
	all matters relating to the provision of services hereunder.		158
	Provided, however, that the Managers in the performance of their		159
	management responsibilities under this Agreement shall be entitled		160
	to have regard to their overall responsibility in relation to all vessels		161
	as may from time to time be entrusted to their management and		162
	in particular, but without prejudice to the generality of the foregoing,		163
	the Managers shall be entitled to allocate available supplies,		164
	manpower and services in such manner as in the prevailing		165
	circumstances the Managers in their absolute discretion consider		166
	to be fair and reasonable.		167
	4.2	Where the Managers are providing Technical Management	168
	in accordance with sub-clause 3.2, they shall procure that the		169
	requirements of the law of the flag of the Vessel are satisfied and		170
	they shall in particular be deemed to be the “Company” as defined		171
	by the ISM Code, assuming the responsibility for the operation of		172
	the Vessel and taking over the duties and responsibilities imposed		173
	by the ISM Code and/or the ISPS Code when applicable.		174
5.	Owners’ Obligations		175
	5.1	Without prejudice to the relevant provisions of the Group	176
	Management Agreement, Tthe Owners shall pay all sums due to the Managers punctually
	in accordance with the terms of this Agreement.		177
	5.2	Where the Managers are providing Technical Management	178
	in accordance with sub-clause 3.2, the Owners shall:		179
	(i)	procure that all officers and ratings supplied by them or on	180
		their behalf comply with the requirements of STCW 95;	181
	(ii)	instruct such officers and ratings to obey all reasonable orders	182
		of the Managers in connection with the operation of the	183
		Managers’ safety management system.	184
	5.3	Where the Managers are not providing Technical Management	185
	in accordance with sub-clause 3.2, the Owners shall procure that		186
	the requirements of the law of the flag of the Vessel are satisfied		187
	and that they, or such other entity as may be appointed by them		188
	and identified to the Managers, shall be deemed to be the		189
	“Company” as defined by the ISM Code assuming the responsibility		190
	for the operation of the Vessel and taking over the duties and		191
	responsibilities imposed by the ISM Code when applicable.		192
6	Insurance Policies		193
	The Owners shall procure, whether by instructing the Managers		194
	under sub-clause 3.4 or otherwise, that throughout the period of		195
	this Agreement:		196
	6.1	at the Owners’ expense, the Vessel is insured for not less	197
	than her sound market value or entered for her full gross tonnage,		198
	as the case may be for:		199
	(i)	usual hull and machinery marine risks (including crew	200
		negligence) and excess liabilities;	201
	(ii)	protection and indemnity risks (including pollution risks and	202

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

PART II

“XXXXXXX 98” Standard Ship Management Agreement

		Crew Insurances); and	203
	(iii)	war risks (including protection and indemnity and crew risks)	204
	and (iv) any other insurance that the Owners determine or the Managers advise them in writing that, in either case, it is prudent or, as the case may be, appropriate on the basis of prevailing market practices to be obtained in respect of the Vessel, its freight/hire or any third party liabilities,
	in each case in accordance with the best practice of prudent owners		205
	of
	vessels of a similar type to the Vessel, with first class insurance		206
	companies, underwriters or associations (“the Owners’		207
	Insurances”);		208
	6.2	all premiums and calls and applicable deductibles and/or	209
	franchises on the Owners’ Insurances are paid
	promptly by their due date,		210
	6.3	the Owners’ Insurances name the Managers and, subject	211
	to underwriters’ agreement, any third party designated by the		212
	Managers as a joint assured, with full cover, with the Owners		213
	obtaining cover in respect of each of the insurances specified in		214
	sub-clause 6.1:		215
	(i)	on terms whereby the Managers and any such third party	216
		are liable in respect of premiums or calls arising in connection	217
		with the Owners’ Insurances; or	218
	(ii)	if reasonably obtainable, on terms such that neither the	219
		Managers nor any such third party shall be under any	220
		liability in respect of premiums or calls arising in connection	221
		with the Owners’ Insurances; or	222
	(iii)	on such other terms as may be agreed in writing.	223
	Indicate alternative (i), (ii) or (iii) in Xxx 00. If Box 14 is left		224
	blank then (i) applies.		225
	6.4	written evidence is provided, to the reasonable satisfaction	226
	of the Managers, of their compliance with their obligations under		227
	Clause 6 within a reasonable time of the commencement of		228
	the Agreement, and of each renewal date and, if specifically		229
	requested, of each payment date of the Owners’ Insurances.		230
7.	Income Collected and Expenses Paid on Behalf of Owners		231
	7.1	Without prejudice to the provisions of Section 10.7 of the	232
	Group Management Agreement, Aall moneys collected by the
	Managers under the terms of
	this Agreement (other than moneys payable by the Owners to		233
	the Managers) and any interest thereon shall be held to the		234
	credit of the Owners in a separate bank account.		235
	7.2	Without prejudice to the provisions of Section 9.7, Section	236
	10.5 and Section 10.8 of the Group Management Agreement, Aall
	expenses incurred by the Managers under the terms
	of this Agreement on behalf of the Owners (including expenses		237
	as provided in Clause 8) may be debited against the Owners		238
	in the account referred to under sub-clause 7.1 but shall in any		239
	event remain payable by the Owners to the Managers on		240
	demand. For the avoidance of doubt, the Managers can make such demand on the Owners as well as on the Parent as provided in Section 10.5 of the Group Management Agreement. Furthemore and without prejudice to the generality of the provisions of this Clause 7, the Managers shall, subject to being placed in funds by the Owners or the Parent, arrange for the payment of all ordinary charges incurred in connection with the Management Services, including, but not limited to, all canal tolls, port charges, any amounts due to any governmental authority with respect to the Crew and all duties and taxes in respect of the Vessel, the cargo, hire or freight (whether levied against the Owners, the Parent or the Vessel), insurance premiums, advances of balances of disbursements, invoices for bunkers, stores, spares, provisions, repairs and any other material andror service in respect of the Xxxxxx.		000
0.	Management Fee		242
	8.1	The Owners shall pay to the Managers for their services	243
	as Managers under this Agreement an annual the management		244
	fees as stated in Box 15 Section 9.1(a) and Section 9(b) of the Group Management Agreement which shall be payable by equal		245
	monthly instalments in advance, the first instalment being monthly		246

	in accordance with the provision of Article IX of the Group Management Agreement. payable on the commencement of this Agreement (see Clause		247
	2 and Box 4) and subsequent installments being payable every		248
	month.		249
	8.2	The management fee shall be subject to an annual review	250
	in accordance with the provisions of Sections 9.2 and 9.3 of the Group Management Agreementon the anniversary date of the Agreement and the proposed		251
	fee shall be presented in the annual budget referred to in sub-		252
	clause 9.1.		253
	8.3	The Managersshall, at no extra cost to the Owners, provide	254
	their own office accommodation, office staff, facilities and		255
	stationery. Without limiting the generality of Clause 7 the Owners		256
	shall reimburse the Managers for postage and communication		257
	expenses, travelling expenses, and other out of pocket		258
	expenses properly incurred by the Managers in pursuance of		259
	the Management Services.		260
	8.4	The provisions of Section 9.4, Section 9.5, Section 9.6 and	261
	Section 9.7 of the Group Management Agreement shall be
	deemed as incorporated herein mutatis mutandis.
	8.5	The Managers have the right to demand the payment of any
	of the management fees and expenses payable under this Agreement either from the Parent or the Owners. Payment of any such fees or expenses or any part thereof by either the Parent or the Owners shall prevent the Managers from making a claim on the other person for the same amount to the extent that the same has been already paid to the Managers.
	In the event of the appointment of the Managers being
	terminated by the Owners or the Managers in accordance with		262
	the provisions of Clauses 17 and 18 other than by reason of		263
	default by the Managers, or if the Vessel is lost, sold or otherwise.		264
	Disposed of, the “management fee” payable to the Managers		265
	According to the provisions of sub-clause 8.1, shall continue to		266
	be payable for a further period of three calendar months as		267
	from the termination date. In addition, provided that the		268
	Managers provide Crew for the Vessel in accordance with sub-		269
	clause-3,1:		270
	(i)	the Owners shall continue to pay Crew Support Costs during	271
		the said further period of three calendar months and	272
	(ii)	the Owners shall pay an equitable proportion of any	273
		Severance Costs which may materialize, not exceeding	274
		the amount stated in Box 16.	275
	8.5	If the Owners decide to lay up the Vessel whilst this	276
	Agreement remains in force and such lay up lasts for more		277
	than three months, an appropriate reduction of the management		278
	fee for the period exceeding three months until one month		279
	before the Vessel is again put into service shall be mutually		280
	agreed between the parties.		281
	8.6	Unless otherwise agreed in writing all discounts and	282
	commissions obtained by the Managers in the course of the		283
	management of the Vessel shall be credited to the Owners.		284
9.	Budgets and Management of Funds		285
	9.1	The Owners are aware that the Managers will be preparing	286
	budgets in connection with, inter alia, the provision of the Management Services which the Managers will be submitting for approval to the Parent in accordance with the provisions of Article X of the Group Management Agreement. The Managers shall present to the Owners annually a
	budget for the following twelve months in such form as the		287
	Owners require. The budget for the first year hereof is set out		288
	in Annex “C” hereto. Subsequent annual budgets shall be		289
	prepared by the Managers and submitted to the Owners not		290
	less than three months before the anniversary date of the		291
	commencement of this Agreement (see Clause 2 and Box 4).		292
	9.2	The Owners shall indicate to the Managers their acceptance	293
	and approval of the annual budget within one month of		294
	presentation and in the absence of any such indication the		295
	Managers shall be entitled to assume that the Owners have		296
	accepted the proposed budget.		297
	9.3	Following the agreement of the budget, the Managers shall	298

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

PART II

“XXXXXXX 98” Standard Ship Management Agreement

	prepare and present to the Owners their estimate of the working		299
	capital requirement of the Vessel and the Managers shall each		300
	month up date this estimate. Based thereon, Without prejudice to the right of the Managers to ask for funds in relation to the Management Services directly from the Parent in accordance with the relevant provisions of the Group Management Agreement, the Managers shall		301
	each month request the Owners in writing for the funds required		302
	to run the Vessel for the ensuing month, including the payment		303
	of any occasional or extraordinary item of expenditure, such as		304
	emergency repair costs, additional insurance premiums, bunkers		305
	or provisions. Such funds shall be received by the Managers		306
	within ten running days after the receipt by the Owners of the		307
	Managers’ written request and shall be held to the credit of the		308
	Owners in a separate bank account in the name of the Managers or, if requested by the Managers, in the name of the Owners.		309
	9.4	The Managers shall produce a comparison between	310
	budgeted and actual income and expenditure of the Vessel in		311
	such form as required by the Owners monthly or at such other		312
	intervals as mutually agreed.		313
	9.5	Notwithstanding anything contained herein to the contrary,	314
	the Managers shall in no circumstances be required to use or		315
	commit their own funds to finance the provision of the		316
	Management Services.		317
10.	Managers’ Right to Sub-Contract		318
	Except to a Related Manager (where the Manager may		319
	subcontract any of their obligations hereunder, without need of
	obtaining the Owner’s consent for doing so), Tthe Managers shall not have the right to sub-contract any of
	their obligations hereunder, including those mentioned in sub-		320
	clause 3.1, without the prior written consent of the Owners which		321
	shall not be unreasonably withheld and which shall be promptly responded to. In the event of such a sub-		322
	contract the Managers shall remain fully liable for the due		323
	performance of their obligations under this Agreement.		324
11.	Responsibilities		325
			326
	The parties agree that the provisions of Sections 11.1 to 11.5 (inclusive) of the Group Management Agreement, shall apply to this Agreement mutatis mutandis, save that references therein to “any Shipmanagement Agreement or any Supervision Agreement” shall be omitted and references to “Parent”, “any member of the Group”, “Manager”, “any Submanager”, “a Vessel”, “Section”, “Management Fees”, “each Shipmanagement Agreement”, “Group” and “Article XI” shall be construed as references to the Owners, the Owners, the Managers, any submanager, the Vessel, Clause, management fee, this Agreement, the Owners and Clause 11, respectively, when used herein.
	11.1	Force Majeure - Neither the Owners nor the Managers
	shall be under any liability for any failure to perform any of their		327
	obligations hereunder by reason of any cause whatsoever of		328
	any nature or kind beyond their reasonable control.		329
	11.2	Liability to Owners - (i) Without prejudice to sub-clause	330
	11.1, the Managers shall be under no liability whatsoever to the		331
	Owners for any loss, damage, delay or expense of whatsoever		332
	nature, whether direct or indirect (including but not limited to		333
	lose of profit arising out of or in connection with detention of or		334
	delay to the Vessel) and howsoever arising in the course of		335
	performance of the Management Services UNLESS same is		336
	proved to have resulted solely from the negligence, gross		337
	negligence or wilful default of the Managers or their employees,		338
	or agents or sub-contractors employed by them in connection		339
	with the Vessel, in which case (save where loss, damage, delay		340
	or expense has resulted from the Managers’ personal act or		341
	omission committed with the intent to cause same or recklessly		342
	and with knowledge that such loss, damage, delay or expense		343
	would probably result) the Managers’ liability for each incident		344
	or series of incidents giving rise to a claim or claims shall never		345
	Exceed a total of ten times the annual management fee payable		346

	hereunder.		347
	(ii) Notwithstanding anything that may appear to the contrary in		348
	this Agreement, the Managers shall not be liable for any of the		349
	actions of the Crew, even if such actions are negligent, grossly		350
	negligent or wilful, except only to the extent that they are shown		351
	to have resulted from a failure by the Managers to discharge		352
	their obligations under sub-clause 3.1, in which case their liability		353
	shall be limited in accordance with the terms of this Clause 11.		354
	11.3	Indemnity - Except to the extent and solely for the amount	355
	therein set out that the Managers would be liable under sub-		356
	clause 11.2, the Owners hereby undertake to keep the Managers		357
	and their employees, agents and sub-contractors indemnified		358
	and to hold them harmless against all actions, proceedings,		359
	claims, demands or liabilities whatsoever or howsoever arising		360
	which may be brought against them or incurred or suffered by		361
	them arising out of or in connection with the performance of the		362
	Agreement, and against and in respect of all costs, losses,		363
	damages and expenses (including legal costs and expenses on		364
	a full indemnity basis) which the Managers may suffer or incur		365
	(either directly or indirectly) in the course of the performance of		366
	this Agreement.		367
	11.4	“Himalaya” - It is hereby expressly agreed that no	368
	employee or agent of the Managers (including every sub-		369
	contractor from time to time employed by the Managers) shall in		370
	Any circumstances whatsoever be under any liability whatsoever		371
	to the Owners for any loss, damage or delay of whatsoever kind		372
	arising or resulting directly or indirectly from any act, neglect or		373
	default on his part while acting in the course of or in connection		374
	with his employment and, without prejudice to the generality of		375
	the foregoing provisions in this Clause 11, every exemption,		376
	limitation, condition and liberty herein contained and every right,		377
	exemption from liability, defence and immunity of whatsoever		378
	nature applicable to the Managers or to which the Managers are		379
	entitled hereunder shall also be available and shall extend to		380
	protect every such employee or agent of the Managers acting		381
	as aforesaid and for the purpose of all the foregoing provisions		382
	of this Clause 11 the Managers are or shall be deemed to be		383
	acting as agent or trustee on behalf of and for the benefit of all		384
	persons who are or might be their servants or agents from time		385
	to time (including sub-contractors as aforesaid) and all such		386
	persons shall to this extent be or be deemed to be parties to this		387
	Agreement.		388
12.	Documentation		389
	Without prejudice to the relevant provisions of the Group Management Agreement, Wwhere the Managers are providing Technical Management in		390
	accordance with sub-clause 3.2 and/or Crew Management in		391
	accordance with sub-clause 3.1, they shall make available,		392
	upon Owners’ request, all documentation and records related		393
	to the Safety Management System (SMS) and/or the Crew		394
	which the Owners need in order to demonstrate compliance		395
	with the ISM Code, the ISPS Code and STCW 95 or to defend a		396
	claim against
	a third party.		397
13.	General Administration		398
	3.1	Without prejudice to the provisions of Article V of the Group Management Agreement, but subject to the provisions of Section 4.6 of the Group Management Agreement, Tthe Managers shall handle and settle all claims arising	399
	out of the Management Services hereunder and keep the Owners		400
	informed regarding any incident of which the Managers become		401
	aware which gives or may give rise to material claims or disputes involving		402
	third parties.		403
	13.2	The Managers shall, as instructed by the Owners under this Agreement and/or, as the case may be, Section 4.6 of the Group Management Agreement, bring	404
	or defend actions, suits or proceedings in connection with matters		405
	entrusted to the Managers according to this Agreement.		406

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

PART II

“XXXXXXX 98” Standard Ship Management Agreement

	13.3	The Managers shall also have power to obtain legal or	407
	technical or other outside expert advice in relation to the handling		408
	and settlement of claims and disputes or all other matters		409
	affecting the interests of the Owners in respect of the Vessel.		410
	13.4	The Owners shall arrange for the provision of any	411
	necessary guarantee bond or other security.		412
	13.5	Any costs reasonably incurred by the Managers in	413
	carrying out their obligations according to Clause 13 shall be		414
	reimbursed by the Owners.		415
14.	Auditing		416
	The Managers shall at all times maintain and keep true and		417
	correct accounts and shall make the same available for inspection		418
	and auditing by the Owners at such times as may be mutually		419
	agreed. On the termination, for whatever reasons, of this		420
	Agreement, the Managers shall release to the Owners, if so		421
	requested, the originals where possible, or otherwise certified		422
	copies, of all such accounts and all documents specifically relating		423
	to the Vessel and her operation. For the avoidance of any doubt, this Clause is in addition to and not in substitution of the relevant provisions of the Group Management Agreement.		424
15.	Inspection of Vessel		425
	The Owners shall have the right at any time after giving		426
	reasonable notice to the Managers to inspect the Vessel for any		427
	reason they consider necessary.		428
16.	Compliance with Laws and Regulations		429
	The Managers will not do or permit to be done anything which		430
	might cause any breach or infringement of the laws and		431
	regulations of the Vessel’s flag, or of the places where she trades.		432
17.	Duration of the Agreement		433
	This Agreement shall come into effect on the day and year stated		434
	in Box 4 and shall continue until the the date the Group Management Agreement is terminated in accordance with the provisions of Article XIII thereof, unless this Agreement is terminated earlier in accordance with the provision of Clause 18 hereofthe date stated in Box 17.		435
	Thereafter it shall continue until terminated by either party giving		436
	to the other notice in writing, in which event the Agreement shall		437
	terminate upon the expiration of a period of two months from the		438
	date upon which such notice was given.		439

18.	Termination			440
	18.1	Owners’ default		441
	(i)	The Managers shall be entitled to terminate the Agreement		442
		with immediate effect by notice in writing if any moneys		443
		payable by the Owners under this Agreement and/or the		444
		owners of any associated vessel, details of which are listed		445
		in Annex “D”, shall not have been received in the Managers’		446
		nominated account within ten20 running Business dDays of		447
		receipt by
		the Owners of the Managers written request or if the Vessel		448
		is repossessed by the Mortgagees.		449
	(ii)	If the Owners:		450
		(a)	fail to meet their obligations under sub-clauses 5.2	451
			and 5.3 of this Agreement for any reason within their	452
			control, or	453
		(b)	proceed with the employment of or continue to employ	454
			the Vessel in the carriage of contraband, blockade	455
			running, or in an unlawful trade, or on a voyage which	456
			in the reasonable opinion of the Managers is unduly	457
			hazardous or improper,	458
		the Managers may give notice of the default to the Owners,		459
		requiring them to remedy it as soon as practically possible.		460
		In the event that the Owners fail to remedy it within a		461
		reasonable time20 Business Days of receipt by the Owners of		462
		the Managers’ written request to the satisfaction of the
		Managers, the
		Managers shall be entitled to terminate the Agreement		463

		with immediate effect by notice in writing.	464
	18.2	Managers’ Default	465
	If the Managers fail to meet their obligations under Clauses 3		466
	and 4 of this Agreement for any reason within the control of the		467
	Managers, the Owners may give notice to the Managers of the		468
	default, requiring them to remedy it within 20 Business Daysas		469
	soon as practically
	possible. In the event that the Managers fail to remedy it within a		470
	reasonable timesuch period to the satisfaction of the Owners, the		471
	Owners
	shall be entitled to terminate the Agreement with immediate effect		472
	by notice in writing.		473
	18.3	Extraordinary Termination	474
	This Agreement shall be deemed to be terminated in the case of		475
	the sale of the Vessel or if the Vessel becomes a total loss or is		476
	declared as a constructive or compromised or arranged total		477
	loss or is requisitioned.		478
	18.4	For the purpose of sub-clause 18.3 hereof	479
	(i)	the date upon which the Vessel is to be treated as having	480
		been sold or otherwise disposed of shall be the date on	481
		which the Owners cease to be registered as Owners of	482
		the Vessel;	483
	(ii)	the Vessel shall not be deemed to be lost unless either	484
		she has become an actual total loss or agreement has	485
		been reached with her underwriters in respect of her	486
		constructive, compromised or arranged total loss or if such	487
		agreement with her underwriters is not reached it is	488
		adjudged by a competent tribunal that a constructive loss	489
		of the Vessel has occurred.	490
	18.5	The parties agree that the provisions of Sections 13.4(a) to	491
	13.4(d) (inclusive) of the Group Management Agreement, shall
	apply to this Agreement mutatis mutandis. This Agreement shall
	terminate forthwith in the event of
	an order being made or resolution passed for the winding up,		492
	dissolution, liquidation or bankruptcy of either party (otherwise		493
	than for the purpose of reconstruction or amalgamation) or if a		494
	receiver is appointed, or if it suspends payment, ceases to carry		495
	on business or makes any special arrangement or composition		496
	with its creditors.		497
	18.6	The termination of this Agreement shall be without	498
	prejudice to all rights accrued due between the parties prior to		499
	the date of termination.		500
19.	Law and Arbitration		501
	19.1	This Agreement and any non-contractual obligations	502
	connected with it shall be governed by and construed in
	accordance with English law. All disputes arising out of this		503
	Agreement and/or any non-contractual obligations connected with it shall be arbitrated in London in the following manner. One arbitrator is to be appointed by each of the parties hereto and a third by the two so chosen. Their decision or that of any two of them shall be final. The arbitrators shall be commercial persons, conversant with shipping matters. Such arbitration is to be conducted in accordance with the London Maritime Arbitration Association (LMAA) Terms current at the time when the arbitration proceedings are commenced and in accordance with the Arbitration Act 1996 or any statutory modification or re- enactment thereof. In the event that a party hereto shall state a dispute and designate an arbitrator in writing, the other party shall have 10 Business Days to designate its own arbitrator. If such other party fails to designate its own arbitrator within such period, the arbitrator appointed by the first party can render an award hereunder. Until such time as the arbitrators finally close the hearings, either party shall have the right by written notice served on the arbitrators and on the other party to specify further disputes or differences under this Agreement for hearing and determination. The arbitrators may grant any relief, and render an award, which they or a majority of them deem just and equitable and within the scope of this Agreement, including but not limited to the posting of security. Awards pursuant to this Clause 19.1 may include costs and judgments may be entered upon any award made herein in any court having jurisdiction. and any dispute arising out of or
	in connection with this Agreement shall be referred to arbitration		504

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

PART II

“XXXXXXX 98” Standard Ship Management Agreement

	in London in accordance with the Arbitration Act 1996-or	505
	any statutory modification or re-enactment thereof save to	506
	the extent necessary to give effect to the provisions of this	507
	Clause.	508
	The arbitration shall be conducted in accordance with the	509
	London Maritime Arbitrators Association (LMAA) Terms	510
	current at the time when the arbitration proceedings are	511
	commenced.	512
	The reference shall be to three arbitrators. A party wishing	513
	to refer a dispute to arbitration shall appoint its arbitrator	514
	and send notice of such appointment in writing to the other	515
	party requiring the other party to appoint its own arbitrator	516
	within 14 calendar days of that notice and stating that it will	517
	appoint its arbitrator as solo arbitrator unless the other party	518
	appoints its own arbitrator and gives notice that it has done	519
	so within the 14 days specified. If the other party does not	520
	appoint its own arbitrator and give notice that it has done so	521
	within the 14 days specified, the party referring a dispute to	522
	arbitration may, without the requirement of any further prior	523
	notice to the other party, appoint its arbitrator as sole	524
	arbitrator and shall advice the other party accordingly. The	525
	award of a sole arbitrator shall be binding on both parties	526
	as if he had been appointed by agreement.	527
	Nothing herein shall prevent the parties agreeing in writing	528
	to vary these provisions to provide for the appointment of a	529
	sole arbitrator.	530
	In cases where neither the claim nor any counterclaim	531
	exceeds the sum of USD50,000 (or such other sum as the	532
	parties may agree) the arbitration shall be conducted in	533
	accordance with the LMAA Small Claims Procedure current	534
	at the time when the arbitration proceedings are commenced.	535
	19.2 This Agreement shall be governed by and construed	536
	in accordance with Title 9 of the United States Code and	537
	the Maritime Law of the United States and any dispute	538

	arising out of or in connection with this Agreement shall be	539
	referred to three persons at New York, one to be appointed	540
	by each of the parties hereto, and the third by the two so	541
	chosen; their decision or that of any two of them shall be	542
	final, and for the purposes of enforcing any award,	543
	judgement may be entered on an award by any court of	544
	competent jurisdiction. The proceedings shall be conducted	545
	in accordance with the rules of the Society of Maritime	546
	Arbitrators, Inc.	547
	In cases where neither the claim nor any counterclaim	548
	exceeds the sum of USD50,000 (or such other sum as the	549
	parties may agree) the arbitration shall be conducted in	550
	accordance with the Shortened Arbitration Procedure of the	551
	Society of Maritime Arbitrators, Inc. current at the time when	552
	the arbitration proceedings are commenced.	553
	19.3 This Agreement shall be governed by and construed	554
	in accordance with the laws of the place mutually agreed by	555
	the parties and any dispute arising out of or in connection	556
	with this Agreement shall be referred to arbitration at a	557
	mutually agreed place, subject to the procedures applicable	558
	there.	559
	19.4 If Box 18 in Part I is not appropriately filled in, sub-	560
	clause 19.1 of this Clause shall apply.	561
	Note: 19.1, 19.2 and 19.3 are alternatives; indicate	562
	alternative agreed in Box 18.	563
20.	Notices	564
	20.1 Any notice to be given by either party to the other	565
	party shall be in writing and may be sent by fax, telex,	566
	registered or recorded mail or by personal service.	567
	20.2 The address of the Parties for service of such	568
	communication shall be as stated in Boxes 19 and 20,	569
	respectively.	570

This document is a computer generated XXXXXXX 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.