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SHIP MANAGEMENT PROPOSAL. Sample.

Considering my effort over the selling of your fleets (Tanker Vessels, Cargo Carriers), I wish to put my proposal to your desk on my readiness to manage your vessel and register it to be on full operation within the European Coast water especially to be registered with French Maritime Authority and French Petroleum Company Marine Logistic Department. From our research and experience we have confirm that vessels are interesting equipment that will be credible to invest in if you have good managers. We are ready, willing and able to manage your vessel and put it back to the great dream your good person has before investing into the purchase of the boat. The full time registration of the vessel will be done by our company which will be a Rep upon acceptance to release the vessel for operation either as handlers or on partnership. Below is the draft copy of the Management Procedure for your study which we present as our Letter of Intent in managing your vessels. We are very much interested to handle any situation to enable our intent be a success also to guarantee for any of the vessel that will be handed over for us to manage. We also promise to make sure that the vessel will always be engage with operation base on the numerous arrangements we have put in place before our proposal to your company.

SHIP MANAGEMENT PROCEDURE AND AGREEMENT

EFFECTIVE DATE:
PARTIES: Owners/Handlers/ France
SECTORS: Oil Tanker, Bulk Carrier
GOVERNING LAW: French Republic
EXHIBIT:  _________________________________________
                      Herein referred to as the vessel Owners
And
'CARGO LINES'
123 Boulevard De Paris 13003
MARSEILLE- FRANCE
+33 495 44 44 44
+33 495 55 55 55
Represented by:
Pierre-Louis Lefevre
Herein referred to as the vessel handlers
SUBJECT MATTER: To manage minimum 500 & maximum 100,000 Tonner Vessel with Its Crew and Transaction

Part I

Proposed Vessel Details (ANY TANKER VESSEL/ BULK CARRIER AVAILABLE)
Vessel Name:
Former Name:
Built:
Year Built:
Imo:
GRT:
NRT:
Port Of Registry: MARSEILLE
Hull: Double OR Single
DWT: 500 – 100,0000MT
Summer Cargo
DWT:
Draft:
Classification: Lloyd Register Group (LR), American Bereau of Shipping (ABS), Bureau Veritas (BV), Registro Italiano Navale (RINA), Det Norske Veritas (DNV), Germanischer Lloyd (GL), Nippon Kaiji Kyokai (NK), Russian Maritime Register of Shipping (RMRS), China Classification Society (CCS), Korean Register of Shipping (KR), Indian Register of Shipping, Polish Register of Shipping (PRS), International Register of Shipping (IRS), Hellenic Register of Shipping (HRS)
VESSEL Beam:
Depth:
Max Loading Temp:
Max Loading Rate:
Cargo Tanks:
Cargo Pumps:
Make:
Main Engine:
Make:
Speed:
Consumption:
Capacities:
Boiler:
Make:
Cranes:
Generators:

Part II

Terms of Agreement .
The vessel owner will hand over the vessel with its crew to the handler for proper control and accountability but must go according to the agreed terms of the both parties which will be clearly stated in the agreement.
1. Definitions & Interpretation: The limit of the handler and roles in the management of the vessel and its crew.

2. Appointment of Managers: Recruiting/retrenching of workers in the vessel in any eventuality or necessity.

3. Basic Services:

This means services relating to Crewing, Technical Management, Purchasing, Insurance, Accounting and Budgeting, Operations, Managers Information System, Shipboard Oil Pollution Emergency Plan, and Assistance with Sale provided in accordance with the vessel.

3.1 Crewing.
a. Payment
b. Feeding
c. Severance
Costs means the costs which are required in law to be paid to the Crew as a result of the early termination of contracts for service on board the Vessel.

3.2 Technical Management.
a. Repairs
b. Bunker
c. Lubricant
d. Water
e. Logistics

This also includes:
(i) Provision of personnel to supervise the maintenance and general efficiency of the Vessel;
(ii) Arrangement and supervision of dry dockings, repairs, modifications to and the upkeep of the Vessel to the standards required by the Owners provided that the Managers shall be entitled to incur the necessary expenditure to ensure that the Vessel will comply with all requirements and recommendations of the classification society and equipment manufacturers, and with the laws and regulations of the country of registry of the Vessel and of the places where she trades;
(iii) arrangement of periodic analysis of the bunker fuel, lubricating oils and chemicals by third parties (the costs being included in the Vessel's running costs).
(iv) appointment of surveyors and technical consultants as the Managers may consider from time to time to be necessary.
(v) visits to the Vessel by superintendent or other staff of the Managers for up to 24 days in any calendar year for vessels under 15 years of age and 30 days in any calendar year for vessels over 15 years of age.

3.3 Purchasing. The Handlers shall arrange for the supply of necessary victualling, stores, spares, provisions, lubricating oils and services for the Vessel. To enable the Managers to arrange such supplies on the most advantageous terms, the Managers shall be entitled to join with other parties in making arrangements for bulk purchase. The Managers will have the full power to negotiate on behalf of its member’s prices, terms and conditions regulating the bulk purchasing of goods and services for the marine industry when the full registration is completed.

3.4 Insurance Security/registration. Which includes the vessel, crews and product; “SMS" means a Safety Management System in accordance with the ISM Code. “SSP" means a Ship Security Plan in accordance with the ISPS Code. " ISPS Code" means the International Ship and Port Facility Security Code as adopted by resolution of the Conference of Contracting Governments to the International Convention for the Safety of Life and vessel at Sea. All these insurance majors shall fall under the registration cost of the vessel.

3.5 Accounting and Budgeting.
a. Maintain the records of all costs and expenditure incurred hereunder as well as data necessary or proper for the settlement of accounts between the parties;
b. Establish an accounting system for the Vessel and supply regular reports in accordance therewith in the Managers' standard format or such other form as may be mutually agreed in writing with the Owners.
c. The Managers shall present to the Owners annually a budget for the following twelve months in the Managers' standard format or such other form as may be mutually agreed in writing. Subsequent annual budgets shall be prepared by the Managers and submitted to the Financiers in each year in respect of the following year or monthly.
d. The Owners shall indicate to the Managers their acceptance and approval of the annual budget within 30 days of presentation and in the absence of such acceptance the Managers shall be entitled to assume that the financiers have accepted the said budget. Following the agreement of the budget, the Managers shall prepare and present to the Financiers their estimate of the working capital requirement of the Vessel.

3.6 Operations As required by the Financiers, the Managers shall, as agents for the Owners, provide the following functions:
(i) monitoring voyage instructions and liaising as appropriate with the Owners, the owners brokers and charterers;
(ii) appointment of agents;
(iii) appointment of stevedores;
(iv) arrangement of surveying of cargoes.

3.7 Information System Software. This is communication facilities in the vessel (capability of sending marine ATB, NOR VHF & Other communication tracks from other vessels). The Managers' proprietary ship management software in executable object can as the same may be upgraded and updated from time to time.

4. Auditing, Records. The inventory should be properly done before the total handover and the accountability of the vessel should be also done by the management on Monthly till the contract will be terminated.

5. Inspection of Vessel. The management should go for inspection on the vessel before they comment if there will be any form of repair or upgrading before the commencement.

6. Management Services: means Basic Services and Other Services.

7. Other Services. means any Services provided by Managers except Basic Services, and includes, but is not limited to any of the functions affirmatively indicated in of the Fee Schedule.

8. Appointment of Managers.
(i) With effect from the date stated in the agreement and the "Date of Commencement" and continuing unless and until terminated as provided herein, the Financiers hereby appoint the Handlers and the Handlers hereby agree to act as the Managers of the Vessel.
(ii) In performing any of the Management Services the Managers shall, as agents for and on behalf of the Owners, have authority to take such steps as the Managers may from time to time in their absolute discretion consider to be necessary to enable them to perform this Agreement in accordance with sound ship management practice.

9. Crewing. The Managers shall provide suitably qualified crew for the Vessel as required by the Owners in accordance with current STCW requirements, provision of which includes but is not limited to the following functions:
(i) selecting and engaging Master, officers and crew (hereinafter collectively referred to as the "Crew" ); where the Financiers make a complaint about any member of the Crew the Managers will promptly investigate the same and, replace the Crew member concerned as soon as practicable;
(ii) ensuring that the applicable requirements of the law of the flag of the Vessel are satisfied in respect of manning levels, rank, qualification and certification of the Crew, and employment regulations including Crew's tax, social insurance, discipline and other requirements;
(iii) ensuring that all members of the Crew have passed a medical examination with a qualified doctor certifying that they are fit for the duties for which they are engaged and are in possession of valid medical certificates issued in accordance with appropriate flag state requirements. In the absence of applicable flag state requirements the medical certificate shall be dated not more than three months prior to the respective Crew members leaving their country of domicile and maintained for the duration of their service on board the Vessel.
(iv) arrangement of transportation of the Crew, including repatriation;
(v) supervising the efficiency of the Crew and using the Manager' s standard crew appraisal system (written or electronic) and administration of all other Crew matters such as planning for the manning of the Vessel;
(vi) making payroll arrangements, including settling manning and agency expenses for the manning agents in the Crew's country of origin and, if applicable, payment of Severance Costs;
(vii) conducting union negotiations and making agreed payments to unions;
(viii) operating the Managers' Drug and Alcohol Policy;
(ix) arranging Crew training in accordance with the Managers' policies but always in compliance with STCW, records of such training being maintained in the Manager' s standard format.

10. Crew Claims The Managers will prepare and process all Crew insurance claims. *The final claim will be passed to the Owners for presentation to Owners. *The final claim will be presented by-the Managers direct to Owners.

11. Solely for the duration of this Agreement the Managers hereby grant the Owners a personal, non-transferable non-exclusive license to use a single copy of the Information System Software as installed by the Managers on a single computer on board each Vessel of the fleet and a single computer in the Owners' office.

12. Terms of Payment
This should be agreed between the vessel Owners and the vessel Handlers of which it will be stated either it should be on monthly or annual bases or per voyage. This is out rightly difference from the payment of the crew.

VESSEL OWNER WITNESS

Sign and Seal Sign and Seal
NAME: NAME:
TITTLE: TITTLE:
DATE: DATE:

VESSEL MANAGEMENT
Sign and Seal
NAME:
TITTLE:
DATE:

We are looking forward for acceptance and prompt response.

Yours Sincerely,
Pierre-Louis Lefevre

Ship management form