Common use of Hull and Machinery Clause in Contracts

Hull and Machinery. Loss, if any, payable to Citizens Asset Finance, a d/b/a of Citizens Leasing Corporation (the “Mortgagee”), for distribution by the Mortgagee first to itself and then to K-Sea Operating Partnership L.P., a Delaware limited partnership, as owner (the “Owner”), as their respective interests may appear, or order, except that, unless Underwriters have been otherwise instructed by notice in writing from the Mortgagee, in the case of any loss involving any damage to the Vessels or liability of the Vessels, the Underwriters may pay directly for the repair, salvage, liability or other charges involved or, if the Owner shall have first fully repaired the damage and paid the cost thereof, or discharged the liability or paid all of the salvage or other charges, then the Underwriters may pay the Owner as reimbursement therefor; provided, however, that if such damage involves a loss in excess of U.S. $250,000 or its equivalent, the Underwriters shall not make such payment without first obtaining the written consent thereto of the Mortgagee. In the event of an actual or constructive total loss or a compromised or arranged total loss of the Vessel or requisition of title, all insurance payments therefor shall be paid to the Mortgagee, for distribution by it in accordance with the terms of the applicable ship Mortgage. Loss, if any, payable to Citizens Asset Finance, a d/b/a of Citizens Leasing Corporation (the “Mortgagee”), for distribution by the Mortgagee first to itself and then to K-Sea Operating Partnership L.P., a Delaware limited partnership, as owner (the “Owner”), as their respective interests may appear, or order, except that, unless and until the Underwriters have been otherwise instructed by notice in writing from the Mortgagee, any loss may be paid directly to the person to whom the liability covered by this insurance has been incurred, or to the Owner to reimburse it for any loss, damage or expenses incurred by it and covered by this insurance, provided the Underwriters shall have first received evidence that the liability insured against has been discharged.

Hull and Machinery. LossBy an Insurance Assignment dated _______, if any1998 the Owner has assigned to The First National Bank of Maryland, not in its individual capacity but solely as Collateral Agent and Trustee (the "Collateral Agent and Trustee"), under the Collateral Agency and Intercreditor Agreement (the "Agreement"), dated as of July 15, 1998, among the Collateral Agent and Trustee, The Bank of New York, a New York trust company (the "Lender") and Millenium Seacarriers, Inc., a Cayman Islands company (the "Company"), the Owner and each subsidiary of the Company listed on the signature pages thereto, all the Owner's right, title and interest in and to all policies and contracts of insurance from time to time taken out or entered into by or for the benefit of the Owner in respect of the vessel hereto (the "Vessels") and accordingly: Unless the Collateral Agent and Trustee shall otherwise agree, all insurance must name the Collateral Agent and Trustee as an assured, but without liability for premiums, calls or assessments, and all amounts of whatsoever nature payable under any insurance must be payable to Citizens Asset Finance, a d/b/a of Citizens Leasing Corporation (the “Mortgagee”), Collateral Agent and Trustee for distribution by the Mortgagee first to itself and then thereafter to K-Sea Operating Partnership L.P., a Delaware limited partnership, as owner (the “Owner”), Owner or others as their respective interests may appear, or order, except that, unless Underwriters have been otherwise instructed by notice in writing from . All amounts payable under any insurance with respect to the Mortgagee, in the case of any loss Vessel involving any damage to the Vessels Vessel not constituting an actual or liability of the Vesselsconstructive or an agreed or compromised total loss, the Underwriters underwriters may pay directly direct for the repair, salvage, liability salvage or other charges involved or, if the Owner shall have first fully repaired the damage and paid the cost thereof, or discharged the liability or paid all of the salvage or other charges, then the Underwriters may pay the Owner as reimbursement therefor; providedPROVIDED, howeverHOWEVER, that if such damage involves a loss amounts (including any franchise or deductible) are in excess of U.S. One Million United States Dollars ($250,000 or its equivalent1,000,000), the Underwriters underwriters shall not make such payment without first obtaining to the written consent thereto Collateral Agent and Trustee. All payments of the Mortgagee. In the event of an actual or constructive total loss or a compromised or arranged total loss of the Vessel or requisition of title, all insurance payments therefor shall be paid made to the Mortgagee, for distribution by it Collateral Agent and Trustee if an Event of Default (as defined in accordance the Agreement) shall have occurred or any event which with the terms giving of notice or the applicable ship Mortgage. Loss, if any, payable to Citizens Asset Finance, a d/b/a lapse of Citizens Leasing Corporation (the “Mortgagee”), for distribution by the Mortgagee first to itself and then to K-Sea Operating Partnership L.P., a Delaware limited partnership, as owner (the “Owner”), as their respective interests may appeartime, or orderboth, except that, unless and until the Underwriters have been otherwise instructed by notice in writing from the Mortgagee, any loss may be paid directly to the person to whom the liability covered by this insurance has been incurred, or to the Owner to reimburse it for any loss, damage or expenses incurred by it and covered by this insurance, provided the Underwriters shall have first received evidence that the liability insured against has been dischargedwould constitute an Event of Default.