Document:

Exhibit
10.12

 

	
  MEMORANDUM
  OF AGREEMENT  

   

   

  Dated:
  as of 11 March 2010

  	
  Norwegian
  Shipbrokers’ Association’s Memorandum of Agreement for sale and purchase of ships. 

  Adopted
  by The Baltic and International Maritime

  Council
  (BIMCO) in 1956.

  Code-name

  SALEFORM 1993

  
	
   

  	
  Revised
  1966, 1983 and 1986/87.

  

 

Cape
Maria Limited of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Republic of the Marshall Islands, MH96960 hereinafter called the Sellers, have
agreed to sell, and Alma Maritime Limited of Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Republic of the Marshall Islands, MH96960
(“Alma”) or a company to be nominated by Alma pursuant to clause 17 hereof hereinafter
called the Buyers, have agreed to buy 

 

Name:
subject to Clause 8 hereof, CAPE MARIA

Classification
Society/Class: Lloyd’s Register of Shipping

 

	
  Built:
  2005

  	
  By:
  Samho Heavy Industries Ltd.

  
	
   

  	
   

  
	
  Flag:
  subject to Clause 8 hereof,

  	
  Place
  of Registration: subject to Clause 8 hereof, Majuro,

  
	
  Marshall
  Islands

  	
  Marshall
  Islands

  
	
  Call
  Sign: P3ZB9

  	
  Grt/Nrt:
  about 87,440 Grt/about 56,260 Nrt

  

 

Register IMO Number: 9282431

 

hereinafter
called the Vessel, on the following terms and conditions:

 

Definitions

 

“Banking days”
are days on which banks are open both in London, Athens, Hong Kong, Shanghai,
New York, the country of the currency stipulated for the Purchase Price in Clause
1 and in the place of closing stipulated in Clause 8.

 

“Charter”
means the “NYPE 93 Form” time charterparty in respect of the Vessel, as amended
by an addendum no.1, both dated 16 February 2010 and made between the
Charterer as charterer and the Sellers as owners (copy of which is annexed
hereto as Appendix B).

 

“Charterer”
means EDF Trading Limited of 80 Victoria Street, Cardinal Place, London SW1E 5JL
England and includes its successors in title.

 

“First
MOA” means the “Saleform 1993” memorandum of agreement dated 21
January 2010, as amended and supplemented by addendum no.1 dated 11
March 2010, both made between Acemio Shipping Company Limited of Cyprus
(“Acemio”) as sellers and the Sellers as buyers, as the same may be further
amended and supplemented from time to time, pursuant to which Acemio has agreed
to sell and the Sellers have agreed to buy the Vessel pursuant to the terms and
conditions referred to therein (copy of which is annexed hereto as Appendix A).

 

“Novation
Agreement” means an agreement to be made between the Sellers, Alma and the Charterer
as provided in Clause 18 hereof in a form to be agreed between the parties
thereto.

 

“United
States Dollars” and “US$” mean the lawful currency of the United States of
America at any relelvant time.

 

“In
writing” or “written” means a letter handed over from the Sellers to the Buyers
or vice versa, a registered letter, telex, telefax or other modern form of
written communication.

 

“Classification
Society” or “Class” means the Society referred to in line 4.

 

1.             Purchase Price

 

US$54,000,000
(United States Dollars Fifty Four Million) minus an amount In Dollars equal to
the amount by which the purchase price of the Vessel payable under clause 1 of
the First MOA has been reduced pursuant to the terms of clause 5 of the First
MOA.

 

This
document is a computer generated SALEFORM 1993 form printed by authority
of the Norwegian Shipbrokers’ Association. 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 approved document shall apply. BIMCO and the Norwegian Shipbrokers’
Association assume no responsibility for any loss, damage or expense as a
result of discrepancies between the original approved document and this computer
generated document.

 

	
  Copyright: Norwegian
  Shipbrokers’ Association’s, Oslo, Norway.

  	
  Printed by BIMCO’s idea

  

 

 

2.             Deposit

 

As
security for the correct fulfilment of this Agreement the Buyers shall pay a
deposit of 10 % (ten per cent) of the Purchase Price within                    
banking days from the date of this Agreement. This deposit shall be placed with                        
and hold by them in a joint account for the Sellers and the Buyers, to be released
in accordance with joint written instructions of the Sellers and the Buyers. Interest, if any, to be credited
to the Buyers. Any fee charged for holding the said
deposit shall be borne equally by the Sellers and the Buyers. There will be
no deposit paid by the Buyers under this Agreement.

 

3.             Payment 

 

The said Purchase Price shall be paid in full free of bank charges to a
bank nominated by the Sellers and accepted by the Buyers. On delivery of the
Vessel, but not later than 3 banking days after the Vessel is in every respect physically ready for delivery in
accordance with the terms and conditions of this Agreement and Notice of
Readiness has been given in accordance with Clause 5.

 

4.             Inspections

 

a)*          The Buyers have inspected and
accepted the Vessel’s classification records. The Buyers have also inspected
the Vessel at/in Qinhuangdao on 10/12/2009 and have accepted the Vessel
following this inspection and the sale is outright and definite, subject only
to the terms and conditions of this Agreement.

 

b)*          The Buyers shall have the right
to inspect the Vessel’s classification records and declare
whether same are accepted or not within                                                                     
The Sellers shall provide for
inspection of the Vessel at/in                       
                 
The Buyers shall undertake the inspection without undue delay to the Vessel. Should the
Buyers cause undue delay they shall compensate the Sellers
for the losses thereby incurred. The Buyers shall inspect the Vessel without opening up and without cost
to the Sellers. During the inspection, the Vessel’s deck and engine log books shall be made available for
examination by the Buyers. If the Vessel is accepted after such inspection, the sale shall
become outright and definite, subject only to the terms and conditions of this Agreement,
provided the Sellers receive written notice of acceptance from the Buyers within 72 hours
after completion of such inspection. Should notice of acceptance
of the Vessel’s classification records and of the Vessel not be received by the
Sellers as aforesaid, the deposit together with interest earned shall be released
immediately to the Buyers whereafter this Agreement shall be null and void.

 

*              4 a) and
4b) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 4a) to apply.

 

5.             Notices, time and place of
delivery

 

a)             The Sellers shall keep the Buyers well informed of
the Vessel’s itinerary and shall provide the Buyers with 30, 21, 14, 10, 7 and
5 days approximate notice and 3, 2 and 1 days definite notice of the estimated
time of arrival at the                                 
intended place of drydocking/underwater inspection/delivery. When the
Vessel is at the place of delivery and in every respect physically ready for
delivery in accordance with this Agreement, the Sellers shall give the Buyers a
written Notice of Readiness for delivery.

 

b)            The Vessel shall be delivered and taken over safely
afloat charter free with empty holds and cargo free at a safe and accessible
berth or anchorage at:

 

(a) if the Buyers take delivery of the Vessel immediately after the
Sellers shall take delivery under the
First MOA, the port of delivery under the First MOA; or

 

(b) if the Buyers take delivery of the Vessel at any time after delivery
by the Sellers to the Charterer under the Charter, a safe port worldwide,
always within American Institute Trade Warranties. /in                                      
in the Sellers’ option.

 

This
document is a computer generated SALEFORM 1993 form printed by authority
of the Norwegian Shipbrokers’ Association. 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 approved document shall apply. BIMCO and the Norwegian Shipbrokers’
Association assume no responsibility for any loss, damage or expense as a
result of discrepancies between the original approved document and this computer
generated document.

 

 

Expected
time of delivery: not earlier than the date falling the later of (i) the
Sellers taking delivery of the Vessel under the First MOA and (ii) the
Sellers receiving notice by the Buyers in accordance with Clause 19 hereof.

 

Date
of cancelling (see Clauses 5 c), 6 b) (iii) and 14):
the later of (i) 16 August 2010 and (ii) the date falling thirty days
after the Sellers receiving notice by the Buyers in accordance with Clause 19
hereof.

 

c)             If the Sellers anticipate that, notwithstanding the
exercise of due diligence by them, the Vessel will not be ready for delivery by
the cancelling date they may notify the Buyers in writing stating the date when
they anticipate that the Vessel will be ready for delivery and propose a new
cancelling date. Upon receipt of such notification the Buyers shall have the
option of either cancelling this Agreement in accordance with Clause 14 within 7 running days 48 hours
(Saturdays, Sundays and banking holidays are excluded) of receipt of the notice
or of accepting the new date as the new cancelling date. If the Buyers have not
declared their option within 7 running days 48 hours (Saturdays, Sundays
and banking holidays are excluded) of receipt of the Sellers’ notification or
if the Buyers accept the new date, the date proposed in the Sellers’
notification shall be deemed to be the new cancelling date and shall be
substituted for the cancelling date stipulated in line 61.

 

If
this Agreement is maintained with the new cancelling date all other terms and
conditions hereof including those contained in Clauses 5 a) and 5 c) shall remain
unaltered and in full force and effect. Cancellation or failure to cancel shall
be entirely without prejudice to any claim for damages the Buyers may have under Clause 14 for the Vessel
not being ready by the original cancelling date.

 

d)            Should the
Vessel become an actual, constructive or compromised total loss before delivery
the deposit together with interest earned shall be released immediately to the
Buyers whereafter this Agreement shall be null and void.

 

6.             Drydocking/Divers Inspection

 

a)**        The Sellers 
shall place the Vessel in drydock at the port of delivery for inspection
by the Classification Society of the
Vessel’s underwater  parts below
the deepest  lead line, the extent of the-inspection being in accordance with the
Classification Society’s rules. It the rudder, propeller, bottom or other
underwater parts below the deepest load line are found broken, damaged or
defective so as to affect the Vessel’s class, such defects shall be made good
at the Sellers’ expense to the satisfaction of the Classification Society
without condition/recommendation*.

 

b)**        (i)   The Vessel is to be delivered without
drydocking. However, the Buyers shall have the right at their expense to
arrange for an underwater inspection by a diver approved by the Classification
Society prior to the delivery of the Vessel. The Sellers shall at their cost
make the Vessel available for such inspection. The extent of the inspection and
the conditions under which it is performed shall be to the satisfaction of the
Classification Society. If the conditions at the port of delivery are
unsuitable for such inspection, the Sellers shall make the Vessel available at
a suitable alternative place near to the delivery port. 

 

(ii)   If the rudder, propeller,
bottom or other underwater parts below the deepest load line are found broken,
damaged or defective so as to affect the Vessel’s class, then unless repairs
can be carried out afloat to the satisfaction of the Classification Society,
the Sellers shall arrange for the Vessel to be drydocked at their expense for
inspection by the Classification Society of the Vessel’s underwater parts below
the deepest load line, the extent of the inspection being in accordance with
the Classification Society’s rules. If the rudder, propeller, bottom or other
underwater parts below the deepest load line are found broken, damaged or
defective so as to affect the Vessel’s class, such defects shall be made good
by the Sellers at their expense to the satisfaction of the Classification
Society without condition/recommendation *. In such event the Sellers
are to pay also for the cost of the underwater inspection and the
Classification Society’s attendance.

 

(iii)   If the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no suitable
drydocking facilities are available at the port of delivery, the Sellers shall
take the Vessel to a port where suitable drydocking facilities are available,
whether within or outside the delivery range as per Clause 5 b). Once
drydocking has taken place the Sellers shall deliver the Vessel at a port within the delivery
range as per Clause 5 b) which shall,  for the purpose
of this Clause, become the new port of delivery. In such event the cancelling
date provided for in Clause 5 b)) shall be
extended by the additional time required for the 

 

This
document is a computer generated SALEFORM 1993 form printed by authority
of the Norwegian Shipbrokers’ Association. 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 approved document shall apply. BIMCO and the Norwegian Shipbrokers’
Association assume no responsibility for any loss, damage or expense as a
result of discrepancies between the original approved document and this computer
generated document.

 

 

drydocking and extra steaming, but limited to a maximum of 14 30
running days.

 

c)             If the Vessel is drydocked pursuant to Clause 6 a)
or 6 b) above

 

(i)   the Classification Society may require
survey of the tailshaft system, the extent of the survey being to the
satisfaction of the Classification surveyor. If such survey is not required by
the Classification Society, the Buyers shall have the right to require the
tailshaft to be drawn and surveyed by the Classification Society, the extent of
the survey being in accordance with the Classification Society’s rules for
tailshaft survey and consistent with the current stage of the Vessel’s survey
cycle. The Buyers shall declare whether they require the tailshaft to be drawn
and surveyed not later than by the completion of the inspection by the
Classification Society. The drawing and refitting of the tailshaft shall be
arranged by the Sellers. Should any parts of the tailshaft
system be condemned or found defective so as to affect the Vessel’s class,
those parts shall be renewed or made good at the Sellers’ expense to the
satisfaction of the Classification Society without condition/recommendation*.

 

(ii)   the expenses relating to the survey of the
tailshaft system shall be borne by the Buyers unless the Classification Society
requires such survey to be carried out, in which case the Sellers shall pay
these expenses. The Sellers shall also pay the expenses if the Buyers require
the survey and parts of the system are condemned or found defective or broken
so as to affect the Vessel’s class*. 

 

(iii)   the expenses in connection
with putting the Vessel in and taking her out of drydock, including the drydock
dues and the Classification Society’s fees shall be paid by the Sellers if the
Classification Society issues any condition/recommendation* as a result
of the survey or if it requires survey of the tailshaft system. In all other
cases the Buyers shall pay the aforesaid expenses, dues and fees.

 

(iv)  the Buyers’ representative shall have the
right to be present in the drydock, but without interfering with the work or
decisions of the Classification surveyor.

 

(v)
  the
Buyers shall have the right to have the underwater parts of the Vessel cleaned
and painted at their risk and expense without interfering with the Sellers’ or
the Classification surveyor’s work, if any, and without affecting the Vessel’s
timely delivery. If, however, the Buyers’ work in drydock is still in progress
when the Sellers have completed the work which the Sellers are required to do,
the additional docking time needed to complete the Buyers’ work shall be for
the Buyers’ risk and expense. In the event that the Buyers’ work requires such
additional time, the Sellers may upon completion of the Sellers’ work tender
Notice of Readiness for delivery whilst the Vessel is still in drydock and the
Buyers shall be obliged to take delivery in accordance with Clause 3,
whether the Vessel is in drydock or not and irrespective of Clause 5 b).

 

*              Notes, if any, in the surveyor’s report which are
accepted by the Classification Society without condition/recommendation are
not to be taken into account.

 

**           6 a) and 6
b) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 6 a) to apply.

 

However, notwithstanding what has been
mentioned above, if any damage is found to the rudder, propeller, bottom or
other underwater parts below the deepest load line which, in the opinion of the
Classification Society, would impose a condition on the Vessel’s class, but
does not affect the Vessel’s ability to trade until her next scheduled
drydocking, the Buyers and the Sellers shall agree to an amount of compensation
to be deducted from the Purchase Price and the Buyers shall accept delivery of
the Vessel including the condition(s) raised by the diver’s inspection.

 

If
the Sellers and the Buyers cannot agree a compensation figure, within 1 working
day, then the figure to apply is to be the average quotes of estimated costs of
repairs obtained from two first class yards within the delivery range specified
in clause 6 of the First MOA, one selected by the Sellers and one selected by
the Buyers. Compensation is to be the direct actual costs of repairs excluding
drydock time, services and off-hire.

 

If
any damage is found to the underwater parts which in the opinion of the
Classification Society would impose a condition on the Vessel’s class and
cannot be postponed until her next scheduled drydocking, then drydocking
arrangements as per Clause 6 (b) (ii) and (iii) hereof shall
apply with the Buyers right to attend same as observers only without
interference to the Sellers’ work.

 

This
document is a computer generated SALEFORM 1993 form printed by authority
of the Norwegian Shipbrokers’ Association. 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 approved document shall apply. BIMCO and the Norwegian Shipbrokers’
Association assume no responsibility for any loss, damage or expense as a
result of discrepancies between the original approved document and this computer
generated document.

 

 

7.             Spares/bunkers, etc.

 

The Sellers shall deliver the Vessel to the
Buyers with everything belonging to her on board, on order and on Sshore
except for hired equipment listed – Marichem gas cylinders. All spare parts and
spare equipment including spare tail end shaft(s) and/or-spare propelle r(s)
/propeller-blad e(s), if any, belonging to the Vessel at the time of
inspection used or unused, whether on board or not shall become the Buyers’
property, but spares on order are to be excluded. Forwarding charges, if
any, shall be for the Buyers’ account. The Sellers are not required to replace
spare parts including spare tail end shaft(s) and spare propelle
r(s) /propeller-blad e(s) which are taken out of spare and
used as replacement prior to delivery, but the replaced items shall be the
property of the Buyers. The radio installation and navigational equipment
including navaids, GMDSS/wireless equipment, computer and printers but
excluding Sellers’ company software shall be included in the sale without extra
payment if they are the property of the Sellers. Unused stores and
provisions shall be included in the sale and be
taken over by the Buyers without extra payment.

 

The Sellers have the right to take ashore
crockery, plates, cutlery, linen and other articles bearing the Sellers’ flag
or name, provided they replace same with similar unmarked items. Library,
forms, etc., exclusively for use in the Sellers’ vessel(s), shall be excluded
without compensation. Captain’s, Officers’ and Crew’s personal belongings including
the slop chest are to be excluded from the sale ISPS, SMS, ISM and SMC manuals,
certificates, software, ballast water management, SOPEP and other management
documents developed by the Sellers’ managers are excluded from this sale, as
well as the following additional items (including items on hire):

 

If Tthe Buyers take delivery of the
Vessel immediately after the Sellers take delivery of the Vessel under the
First MOA, they shall take over and pay for the remaining bunkers and unused
lubricating oils at the time of delivery an amount equal to the amount which
shall be payable by the Sellers to Acemio under the First MOA in respect of
such bunkers and lubricating oils. If the Buyers take delivery of the Vessel
under this Agreement at any time after delivery of the Vessel by the Sellers to
the Charterer under the Charter the Buyers shall not have to pay anything for
any bunkers on board the Vessel at the time of delivery (which shall be the
Charterer’s property) and shall take over and pay any unbroached and unused
lubricating oils which have not passed through the Vessel’s system in storage
tanks and sealed drums and pay at the Sellers’ last current net market
purchased prices (excluding barging expenses) less any discounts as
evidenced by copies of the relevant vouchers and discount agreement at the part
and date of delivery of the Vessel.

 

Payment under this Clause shall be made at the
same time and place and in the same currency as the Purchase Price.

 

8.             Documentation

 

The place of closing: Athens, Greece.

 

In exchange for payment of the Purchase Price
the Sellers shall furnish the Buyers with delivery documents, namely:

 

a)             Three (3) originals of a
Legal Bill of Sale in a form recordable in the Republic of the Marshall Islands
(the country in which the Buyers are to register the Vessel), warranting that
the Vessel is free from all encumbrances, mortgages and maritime liens or any
other debts or claims whatsoever, duly notarially attestedsigned and legalized
by the consul of such countryMarshall Islands Special Agent in Piraeus
or other competent authority.

 

b)            Current Certificate of
Ownership issued by the competent authorities of the flag state of the Vessel.

 

c)             Confirmation of Class issued within 72 24
hours prior to delivery.

 

d)            Current Certificate issued by
the competent authorities stating that the Vessel is
free from registered encumbrances on the date of delivery of the Vessel.

 

e)             Certificate of Deletion of the Vessel from the
Vessel’s registry or other official evidence of 

 

This document is a computer generated
SALEFORM 1993 form printed by authority of the Norwegian Shipbrokers’
Association. 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 approved document shall apply.
BIMCO and the Norwegian Shipbrokers’ Association assume no responsibility for
any loss, damage or expense as a result of discrepancies between the original
approved document and this computer generated document.

 

 

deletion appropriate to the Vessel’s registry at the time of
delivery, or, in the event that
the registry does not as a matter of practice issue such documentation
immediately, a written undertaking by the Sellers to effect deletion from the
Vessel’s registry forthwith and furnish a Certificate or other official
evidence of deletion to the Buyers promptly and latest within 4 (four) weeks
after the Purchase Price has been paid and the Vessel has been delivered. 

 

f)             The Charter and the Novation
Agreement duly executed.

 

(g)           The protocol of delivery and
acceptance of the Vessel under the Charter.

 

(h)           Copies of all documents
referred to in addendum No. 1 to the First MOA together with a copy of the
relevant Protocol of Delivery and Acceptance by the Sellers thereunder.

 

(i)            A letter signed by the
Sellers and dated the date of delivery whereby the Sellers confirm that to the
best of their knowledge and belief the Vessel under their ownership has not
been blacklisted by any nation (except Turkey, because of Cyprus being the
Vessel’s prior flag) or the Arab Boycott league in Damascus.

 

(j)            A letter by the Vessel’s
master confirming that there are no wages or other salaries due to the master
or the crew and that the master and crew have no claim or other reservation
against the Vessel or that any outstandings will be claimed solely against the
Sellers and their managers and not against the Buyers and/or the Vessel.

 

(k)           A letter signed by the
Sellers confirming that, to the best of their knowledge, the Vessel has not
touched bottom or suffered damage to its underwater parts since the Sellers
accepting delivery under the First MOA.

 

(l)            Any such additional documents
as may reasonably be required by the competent authorities for the purpose of
registering the Vessel and/or as may reasonably be required by the Buyers,
including without limitation, for evidencing (i) valid transfer of title
from the Sellers to the Buyers (ii) the proper constitution of the Sellers
and the Charterer and (iii) that all appropriate corporate and other
action has been taken in connection with the authorisation and the performance
by the Sellers of this Agreement, the Charter and the Novation Agreement (such as Shareholder’s minutes, board of directors minutes etc.),
provided the Buyers notify the Sellers of any such documents as soon as
possible after the date of this Agreement.

 

PROVIDED HOWEVER THAT in the event the Buyers
take delivery of the Vessel under this Agreement immediately after the Vessel’s
delivery to the Sellers under the First MOA, then in exchange for payment of
the Purchase Price, the Sellers shall only furnish the Buyers with all the
documents provided in items (a),
(f) (g), (h) and (i) of this Clause
8.

 

At the time of delivery the Buyers and Sellers
shall sign and deliver to each other a Protocol of Delivery and Acceptance
confirming the date and time of delivery of the Vessel from the Sellers to the
Buyers.

 

At the time of delivery the Sellers shall hand
to the Buyers the classification certificate(s) as well as all plans etc.,
which are on board the Vessel. Other certificates which are on board the Vessel
shall also be handed over to the Buyers unless the Sellers are required to
retain same, in which case the Buyers to have the right to take copies. Other
technical documentation which may be in the Sellers’ possession shall be
promptly forwarded to the Buyers at their expense, if they so request. The
Sellers may keep the Vessel’s log books but the Buyers to have the right to take copies of same. Also, at the time
of delivery, the Sellers are to hand over to the Buyers’ representatives a
complete set of manuals in English relative to the main engine/auxiliaries in addition
to all other existing manuals/instruction books/plans and main engine, generators
previous overhaul reports and copies of the last oil record book.

 

9.             Encumbrances

 

The Sellers warrant that the Vessel, at the
time of delivery, is free from all charters (other than the Charter),
encumbrances, mortgages and maritime liens or any other debts whatsoever. The
Sellers hereby undertake to indemnify the Buyers against all consequences of
claims made against the Vessel which have

 

This document is a computer generated
SALEFORM 1993 form printed by authority of the Norwegian Shipbrokers’ Association.
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 approved document shall apply. BIMCO and the
Norwegian Shipbrokers’ Association assume no responsibility for any loss, damage
or expense as a result of discrepancies between the original approved document and
this computer generated document.

 

 

been incurred prior to the time of delivery.

 

10.           Taxes, etc.

 

Any taxes, fees and expenses in connection
with the purchase and registration under the Buyers’ flag shall be for the
Buyers’ account, whereas similar charges in connection with the closing of the
Sellers’ register shall be for the Sellers’ account.

 

11.           Condition on delivery

 

The Vessel with everything belonging to her
shall be at the Sellers’ risk and expense until she is delivered to the Buyers,
but subject to the terms and conditions of this Agreement she shall be
delivered and taken over as she was at the time of inspection, fair wear and
tear excepted. However, the Vessel shall be delivered with its special survey
and drydock survey passed in December 2009 and with her present class
maintained without condition/recommendation*, free of average damage
affecting the Vessel’s class, and with her classification certificates and
National, international, trading certificates according to the Vessel’s present
class, as well as all other certificates the Vessel had at the time of inspection
signing this Agreement, valid and unextended without condition/recommendation*
by Class or the relevant authorities at the time of delivery. “Inspection”
in this Clause 11, shall mean the Buyers’ inspection according to Clause 4 a) or 4 b),
if applicable, or the Buyers’ inspection prior to the signing of this
Agreement. If the Vessel is taken over without inspection, the date of this
Agreement shall be the relevant date.

 

*              Notes, if any, in the
surveyor’s report which are accepted by the Classification Society without
condition/recommendation are not to be taken into account.

 

12.           Name/markings

 

Upon delivery the Buyers undertake to change
the name of the Vessel and alter funnel markings.

 

13.           Buyers’ default

 

Should the deposit not be
paid in accordance with Clause 2, the Sellers have the right to cancel
this Agreement, and they shall be entitled to claim compensation for their
losses and for all expenses incurred together with interest. Should the
Purchase Price not be paid in accordance with Clause 3, the Sellers have
the right to cancel theis Agreement, in which case the deposit
together with interest earned shall be released to the Sellers. If the deposit
does not cover their loss, the Sellers shall be entitled to claim further
compensation for their losses and for all expenses incurred together with
interest.

 

14.           Sellers’ default

 

Should the Sellers fail to give Notice of
Readiness in accordance with Clause 5 a) or fail to be
ready to validly complete a legal transfer by the date stipulated in line 61 or are in breach
of any of the provisions of Clause 18 the Buyers shall have the option of
cancelling this Agreement provided always that the Sellers shall be granted a
maximum of 3 banking days after Notice of Readiness has been given to make
arrangements for the documentation set out in Clause 8. If after Notice
of Readiness has been given but before the Buyers have taken delivery, the
Vessel ceases to be physically ready for delivery and is not made physically
ready again in every respect by the date stipulated in line 61 and new Notice
of Readiness given, the Buyers shall retain their option to cancel. In the
event that the Buyers elect to cancel this Agreement the deposit together with
interest earned shall be released to them immediately. Should the Sellers fail to
give Notice of Readiness by the date stipulated in line 61 or fail to be
ready to validly complete a legal transfer as aforesaid they shall make due
compensation to the Buyers for their loss and for all expenses together with
interest if their failure is due to proven negligence and whether or not the
Buyers cancel this Agreement. 

 

15.           Buyers’ representatives

 

After this Agreement has been signed by both
parties and the deposit has been lodged, the Buyers have the right to place two
representatives on board the Vessel at their sole risk and expense upon
arrival at a on or about time and port convenient to both parties
after the date of this Agreement. These representatives are on board for the
purpose of familiarisation and in the capacity of

 

This document is a computer generated
SALEFORM 1993 form printed by authority of the Norwegian Shipbrokers’
Association. 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 approved document shall apply.
BIMCO and the Norwegian Shipbrokers’ Association assume no responsibility for
any loss, damage or expense as a result of discrepancies between the original
approved document and this computer generated document.

 

 

observers only, and they shall not interfere
in any respect with the operation of the Vessel but with free access to all the
Vessel during usual working hours. The Buyers’ representatives shall sign the
Sellers’ letter of indemnity disclaimer prior to their embarkation. 

 

16.           Arbitration

 

a)*          This Agreement shall be
governed by and construed in accordance with English law. No term of this
Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999
by a person who is not a party to this
Agreement.and aAny dispute arising out of this Agreement shall be
referred to arbitration in London in accordance with the Arbitration Acts
1996 1950—and—1979 or any statutory modification or re-enactment thereof
for the time being in force, one arbitrator being appointed by each party. On
the receipt by one party of the nomination in writing of the other party’s
arbitrator, that party shall appoint their arbitrator within fourteen
days, failing which the decision of the single arbitrator appointed shall
apply. If two arbitrators properly appointed shall not agree they shall appoint
an umpire whose decision shall be final. Members of the London Maritime
Arbitrators Association are to be the arbitrators.

 

b)*          This Agreement shall be
governed by and construed in accordance with Title 9 of the United States Code
and the Law of the State of New York and should any dispute arise out of this
Agreement, the matter in dispute shall be referred to three persons at New
York, one to be appointed by each of the parties hereto, and the third by the
two so chosen; their decision or that of any two of them shall be final, and
for purpose of enforcing any award, this Agreement may be made a rule of the
Court. The proceedings shall be conducted in accordance with the rules of the
Society of Maritime Arbitrators, Inc. New York.

 

c)*          Any dispute arising out of
this Agreement shall be referred to arbitration at
                          ,
subject to the procedures applicable there.

 

The
laws of
                          shall
govern this Agreement.

 

17.           Nomination of substitute as buyers

 

The Sellers agree that Alma
is entitled to nominate one of its subsidiaries (such subsidiary being called
for the purposes of this Agreement, the “Nominee”) as the buyer of the Vessel
under this Agreement. It is further agreed between the Sellers and the Buyers
that any such nomination is to be made by Alma in writing at least 2 running dates
before delivery of the Vessel and in connection therewith Alma will also
provide to the Sellers a copy of its letter nominating the Nominee as Buyers,
which nomination shall be accepted by the Nominee by countersigning such
letter.

 

Finally, it is hereby agreed
between the parties thereto, that, upon such nomination taking place, the
Nominee shall become the “Buyers” for the purposes of this Agreement and shall
have all the rights and obligations Alma had by signing this Agreement. Alma
will remain responsible for all the obligations the Buyers have under this
Agreement, notwithstanding the nomination of the Nominee, provided however
that, to the extent that the Nominee duly performs and discharges (or procures
the performance and discharge of) the duties and liabilities undertaken by the
Buyers in this Agreement, then such
performance and discharge of the said duties and liabilities by the Nominee
shall be deemed to be proper and due performance and discharge of Alma’s duties
and liabilities under this Agreement and the Sellers shall not be construed by
virtue of the terms of this Clause 17 that they have the right to ask Alma to
perform again any duty or liability that has already been performed by the
Nominee.

 

18.           Charter

 

The Vessel is sold subject to
the Charter which the Buyers have reviewed and accepted. The Sellers hereby
undertake with the Buyers to (a) novate all their rights and obligations
under the Charter, insofar as the Vessel is concerned, in favour of the Buyers
on or prior the delivery of the Vessel to the Buyers and (b) procure that Alma,
the Sellers and the Charterer agree to such a novation pursuant to the Novation
Agreement.

 

The Sellers further undertake
with the Buyers that terms of the Novation Agreement shall be acceptable to the
Buyers and that they shall provide therein, inter alia but without prejudice to
the generality of the foregoing, that any hire paid by the Charterer

 

This document is a computer generated
SALEFORM 1993 form printed by authority of the Norwegian Shipbrokers’
Association. 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 approved document shall apply.
BIMCO and the Norwegian Shipbrokers’ Association assume no responsibility for
any loss, damage or expense as a result of discrepancies between the original
approved document and this computer generated document.

 

 

to
the Sellers under the Charter in advance, insofar as the Vessel is concerned,
in relation to a period of trading falling after the Vessel is delivered to the
Sellers hereunder should be paid by the Sellers to the Buyers and that the
Sellers shall remain responsible for any cargo claims or claims under the
Charter arising prior to the delivery of the Vessel to the Buyers hereunder.

 

The
Sellers further hereby undertake that, following the date of this Agreement and
until delivery of the Vessel to the Buyers under this
Agreement, they will:

 

(a) not,
without the previous written consent of the Buyers: 

 

(i) agree to any variation of
the Charter; or

 

(ii) release the Charterer from any of its
obligations under the Charter or waive any breach of the Charterer’s
obligations thereunder or consent to any such act or omission of the Charterer
as would otherwise constitute such breach; or

 

(iii) determine the Charter for any reason
whatsoever (including withdrawal of the Vessel under the Charter for
non-payment of charter hire in accordance with the terms thereof); and

 

(b) supply
the Buyers all information, accounts and records that may be necessary or of
assistance to enable the Buyers to verify the amount of all payments of
charterhire and any other amount payable under the Charter.

 

Finally,
the Sellers hereby represent and warrant to the Buyers that:

 

(a) the
Charter is free from all encumbrances;

 

(b) the
executed originals of the Charter and the Novation Agreement, to be delivered by
the Sellers to the Buyers under this Agreement, prior to the Vessel being
delivered to the Buyers hereunder, are true and complete, the Charter and the
Novation Agreement, constitutes the valid and binding obligations of the
parties thereto enforceable in accordance with its terms, is in  full
force and effect and there have been no amendments or variations thereof or
defaults thereunder from the date of this Agreement;

 

(c) the
Vessel has been delivered to and accepted by the Charterer for service under
the Charter; and

 

(d) there
are no commission, rebates, premiums or other payments in connection with
the Charter other than as disclosed to the Buyers in writing prior to the date
of this Agreement.

 

19.           Additional termination
clauses

 

This
Agreement shall terminate automatically on the date the First MoA is terminated
for whatever reason, without either party to this Agreement incurring any
liability against the other party.

 

Furthermore,
the Sellers shall not be entitled to tender delivery of the Vessel under this
Agreement until they receive notice in writing by the Buyers that the Buyers
shall be accepting delivery of the Vessel under this Agreement. The
Buyers shall have the right to send such notice for a period of six (6) months
starting from the date of this Agreement. In the event that the Buyers do not
send such notice within the said period this Agreement shall terminate
automatically on the last day of such six (6) months period, without
either party having any claims against the other party because of such
termination.

 

This
document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. 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 approved
document shall apply. BIMCO and the Norwegian Shipbrokers’ Association assume
no responsibility for  any loss, damage or expense
as a result of discrepancies between the original approved document
and this computer generated document.

 

 

This
Agreement is drawn in up to two (2) originals on the date and year written
above, one original to be retained by the Sellers and the other original to be
retained by the Buyers.

 

	
  For
  the Sellers

  	
  For
  the Buyers

  
	
   

  	
   

  
	
  CAPE
  MARIA LIMITED

  	
  ALMA
  MARITIME LIMITED

  
	
   

  	
   

  
	
   

  	
  /s/
  Authorized Signatory

  	
   

  	
  /s/
  Authorized Signatory

  
				

 

*         16 a),
16 b) and 16 c) are alternatives; delete whichever is not applicable. In the
absence of deletions, alternative 16 a) to apply.

 

This
document is a computer generated SALEFORM 1993 form printed by authority of the
Norwegian Shipbrokers’ Association. 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 approved
document shall apply. BIMCO and the Norwegian Shipbrokers’ Association assume
no responsibility for  any loss, damage or expense
as a result of discrepancies between the original approved document
and this computer generated document.

 

 

3.             Payment

 

The
said Purchase Price shell be paid in full free of bank charges to “ALPHA BANK” Piraeus Shipping Branch 960, 89 Akti Minouli,
185-38 Piraeus, Greece Swift: CRBAGRAA via USA correspondent: Citibank NA, New
York 399 Park Avenue, New York, N.Y. 10022, U.S.A. Swift: CITIUS33XXX, ABA 02100089 A/C 36251442 

 

on
delivery of the Vessel, but not later than 3 banking days after the Vessel is in
every respect physically ready for delivery in accordance with the terms and
conditions of this Agreement and Notice of Readiness has been given in
accordance with Clause 5.

 

4.             Inspections

 

a)*          The Buyers-have-inspected
and accepted the Vessel’s classification records. The Buyers have
also inspected the Vessel at/in  QINHUANGDAO.
on 10/12/2009 and have
accepted the Vessel following this inspection and the sale is outright and
definite, subject only to the terms and conditions of this Agreement.

 

b)*          The Buyers shall have the right
to inspect the Vessel’s classification records and declare whether same are accepted
or not within

 

The
Sellers shall provide for inspection of the Vessel at/in

 

The
Buyers shall undertake the inspection without undue delay to
the Vessel. Should the Buyers cause undue delay they shall compensate the Sellers
for the losses thereby incurred. The Buyers shall inspect the Vessel without
opening up and without cost to the Sellers. During the inspection, the Vessel’s
dock and engine log books shall be made available for examination by the
Buyers. If the Vessel is accepted after such inspection, the sale shall become
outright and definite, subject only to the terms and conditions of this
Agreement, provided the Sellers receive written notice of acceptance from the
Buyers within 72 hours after completion of such inspection.

 

Should
notice of acceptance of the Vessel’s classification records and of the Vessel
not be received by the Sellers as aftersold, the deposit together with interest
earned shall be released immediately to the Buyers, whereafter this Agreement
shall be null and void.

 

*              4 a) and
4b) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 4a) to apply.

 

5.             Notices, time and place of
delivery

 

a)             The Sellers
shall keep the Buyers well informed of the Vessel’s itinerary and shall provide
the Buyers with 30, 21, 14, 10, 7, and
5 days approximate notice and 3,
2, 1 days definite notice of the estimated time of arrival at
the intended place of drydocking/underwater inspection/delivery. When
the-Vessel is at the
place of delivery and in every respect physically ready for delivery in
accordance with this Agreement, the Sellers shall give the Buyers a written
Notice of Readiness for delivery.

 

b)            The Vessel shall
be delivered and taken over safely afloat on
completion of her current Time Charter to Korea Line without any further laden
legs, charter free with empty holds and cargo free at a safe and
accessible berth or anchorage at/in  a
port within the following ranges: Singapore/Japan range including Peoples
Republic of China/South Korea/Hong Kong but excluding Taiwan or Skaw/Passero
range (including U.K. and Eire)

 

actual port in the Sellers’ option.

 

The Sellers’ intention is to deliver at a Chinese port
subject to any Charterers’ instructions.

 

Expected
time of delivery: 01/04/2010 - 30/04/2010

 

Data
of cancelling (see Clauses 5 c), 6 b) (iii) and 14): 20/07/2010 in Buyers’ option.

 

The Sellers agree that in the event that the tendering of
Notice of Readiness for delivery of

 

 

the Vessel to the Buyers takes place on a day falling after
30 April 2010, then the Sellers shall pay to the Buyers the sum of US$I0,000
per day (pro rated for less than a full day) for each day during the period
commencing on midnight Greek time 30 April 2010 and ending on the time
(Greek time) and date the Vessel tenders notice of readiness for delivery to
the Buyers under this Agreement.

 

The Sellers shall pay the relevant amount to the Buyers at
the same time the Buyers pay to the Sellers the Purchase Price due under clause
1 of this Agreement alternatively the Buyers shall have the right to deduct
from the Purchase Price the amount due to them under this clause 5, instead of
being paid the same by the Sellers in cash.

 

The Buyers shall designate whether they want the relevant amount
paid in cash or to be deducted from the Purchase Price 2 working days prior to
the delivery date.

 

In the event that the Vessel has to be drydocked under
clause 6, then for such time, including any relocation time, the US$ 10,000 is
not payable

 

c)             If the Sellers
anticipate that, notwithstanding the exercise of due diligence by them, the Vessel
will not be ready for delivery by the cancelling date they may notify the
Buyers in writing stating the date when they anticipate that the Vessel will be
ready for delivery and propose  a new cancelling date. Upon receipt of such notification the Buyers shall  have the option
of either cancelling this Agreement in accordance with Clause 14 within 7
running days  48 hours (Saturdays, Sundays and
banking holidays are excluded) of receipt of the notice or
of accepting the new date as the new cancelling date. If the Buyers have not
declared their option within 7 running-days  48
hours (Saturdays, Sundays and banking holidays are excluded) of receipt of
the Sellers’ notification or if the Buyers accept the new date, the date
proposed in the Sellers’ notification shall be deemed to be the new cancelling
date and shall be substituted for the cancelling date stipulated in line 61.

 

If
this Agreement is maintained with the new cancelling date all other terms and
conditions hereof including those contained in Clauses 5 a) end 5 c) shall
remain Unaltered and in full force and effect. Cancellation or failure to
cancel shall be entirely without prejudice -to any claim for damages the
Buyers may have under Clause 14 for the Vessel not being ready by the original
cancelling date.

 

d)            Should the
Vessel become an actual, constructive or compromised total loss before delivery
the deposit together with interest earned shall be released immediately to the
Buyers whereafter this Agreement shall be null and void.

 

6.             Drydocking/Divers
Inspection

 

a)**        The Sellers shall place the
Vessel in drydock at the port of delivery for
inspection by the Classification Society of the Vessel’s underwater parts below
the deepest load line, the extent of the Inspection being in accordance with
the Classification Society’s rules. If the rudder, propeller, bottom or other
underwater parts below the deepest load line are found broken, damaged
or defective so as to affect the Vessel’s class,
such defects shall be made good at the Sellers’ expense to the satisfaction -of
the Classification Society without condition/recommendation*.

 

b**          (i) The Vessel is to be delivered without drydocking.
However, the Buyers shall have the right at their expense to arrange for an
underwater inspection by a diver approved by the Classification Society prior
to the delivery of the Vessel. The Sellers shall at their cost make the Vessel
available for such inspection. The extent of the inspection and the conditions
under which it is performed shall be to the satisfaction of the Classification Society.
If the conditions at the port of delivery are unsuitable for such inspection,
the Sellers shall make the Vessel available at a suitable alternative place
near to the delivery port.

 

(ii)
If the rudder, propeller, bottom or other underwater parts below the deepest
load line are found broken, damaged or defective so as to affect the Vessel’s
class, then unless repairs can be carried out afloat to the satisfaction of the
Classification Society, the Sellers shall arrange for the Vessel to be drydocked at
their expense for inspection by the Classification Society of the Vessel’s
underwater parts below the deepest load line, the extent of the inspection
being in accordance with the Classification Society’s rules. If the rudder,
propeller, bottom or other underwater parts below the deepest load line are
found 

 

 

broken,
damaged or defective so as to affect the Vessel’s class, such defects shall be
made good by the Sellers at their expense to the satisfaction of the Classification
Society without condition/recommendation*. In such event the Sellers are
to pay also for the cost of the underwater Inspection and the Classification
Society’s attendance.

 

(iii)
if the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no
suitable drydocking facilities are available at the port of delivery, the
Sellers shall take the Vessel to a port where suitable drydocking facilities
are available, whether within or outside the delivery range as per Clause 5 b).
Once drydocking has taken place the Sellers shall deliver the Vessel at a port
within the delivery range as per Clause 5 b) which shall, for the purpose of
this Clause, become the new port of delivery. In such event the cancelling date
provided for in Clause 5 b) shall be extended by the additional time required
for the drydocking and extra steaming, but limited to a maximum of 30 14 running days.

 

c)                                      If the Vessel is
drydocked pursuant to Clause 6 a) or 6 b) above

 

(i) the
Classification Society may require survey of the tallshaft system, the extent
of the survey being to the satisfaction of the Classification surveyor. If such
survey is not required by the Classification Society, the Buyers shall have the
right to require the tallshaft to be drawn and surveyed by the Classification
Society, the extent of the survey being in accordance with the Classification
Society’s rules for tallshaft survey and consistent with the current stage
of the Vessel’s survey cycle. The Buyers shall declare whether they require the
tallshaft to be drawn and surveyed not later than by the completion of the
inspection by the Classification Society. The drawing and refitting of the
tallshaft shell be arranged by the Sellers. Should any parts of the tallshaft
system be condemned or found defective so as to affect the Vessel’s class,
those parts shall be renewed or made good at the Sellers’ expense to the
satisfaction of the Classification Society without condition/recommendation*.

 

(ii)  the expenses relating to the survey of
the tallshaft system
shall be borne by the Buyers unless the Classification Society requires
such survey to be carried out, in which case the Sellers shall pay these
expenses. The Sellers shall also pay the expenses if the Buyers require the
survey and parts of the system are condemned or found defective or broken so as
to affect the Vessel’s class*.

 

(iii)
the expenses in connection with putting the Vessel in and taking her out of
drydock, including the drydock dues and the Classification Society’s fees shall
be paid by the Sellers if the Classification Society issues any condition/recommendation*
as a result of the survey or if it requires survey of the tallshaft system. In
all other cases the Buyers shall pay the aforesaid expenses, dues end fees.

 

(iv)
the Buyers’ representative shall have the right to be present in the drydock,
but without interfering with the work or decisions of the Classification
surveyor.

 

(v)
the Buyers shall have the right to have the underwater parts of the Vessel cleaned
and painted at their risk and expense without interfering with the Sellers’ or the Classification surveyor’s work, if any, and
without affecting the Vessel’s timely delivery. If, however, the Buyers’ work in
drydock is still in progress when the Sellers have completed the work which the
Sellers are required to do, the additional docking time needed to complete the
Buyers’ work shall be for the Buyers’ risk and expense. In the event that the
Buyers’ work requires such additional time, the Sellers may upon completion of
the Sellers’ work tender Notice of Readiness for delivery whilst the Vessel is
still in drydock and the Buyers shall be obliged to take delivery in accordance
with Clause 3, whether the Vessel is in drydock or not and irrespective of
Clause 5 b).

 

*                                         Notes, if any, in
the surveyor’s report which are accepted by the Classification Society without
condition/recommendation are not to be taken into account.

 

However, not withstanding what has bean mentioned above, if
any damage is found to the rudder, propeller, bottom or other underwater parts
below the deepest load line which in the opinion of class would impose a class
condition, but does not affect vessel’s ability to trade until next scheduled
drydocking, Buyers and Sellers shall agree to an amount of compensation to be
deducted from the purchase price and Buyers shall accept delivery of the vessel
including the condition(s) raised by the divers inspection.

 

If Sellers and Buyers cannot agree a compensation figure
within 1 working day, then the figure to apply is to be the average quotes of
estimated costs of repairs obtained from 2 first

 

 

class yards in the delivery range, 1 appointed by Sellers
and 1 appointed by Buyers. Compensation is to be the direct actual costs of
repairs excluding drydock time, services and off-hire.

 

If any damage is found to the underwater parts which in
the opinion of class would impose a class condition and cannot be postponed
until the next drydocking, then drydocking arrangements as per clause 6
(b) (ii) above and (b) (iii) below shall apply with Buyers right to
attend same as observers only without interferance to Sellers work.

 

**                                  6
a) and 6 b)
are alternatives; delete whichever is not applicable. In
the absence of deletions, alternative 6 a) to apply.

 

7.                                  Spares/bunkers,
etc.

 

The
Sellers shall deliver the Vessel to the Buyers with everything belonging to her
on board, on order and on shore except
for hired equipment listed - Marichem gas cylinders. All spare parts
and spare equipment including spare fall and shaft(s) and/or spare propeller(s)/propeller
blade(s), if any, belonging to the Vessel at  the time of inspection used
or unused, whether on board or not shall become the Buyers’ property, but
spares on order are to be excluded. Forwarding charges, if any, shall be
for the Buyers’ account. The Sellers are not required to replace spare parts including
spare tall end shaft(s) and spare propeller(s)/propeller blade(s) which are
taken out of spare and used as replacement prior to delivery, but the replaced items
shall be the property of the Buyers. The radio installation and navigational
equipment including navaids, GMDSS/wireless
equipment, computer and printers but excluding Sellers’ company software shall be included
in the sale without extra payment if they are the property of the Sellers.
Unused stores and provisions shall be included in the sale and be taken over by
the Buyers without extra payment.

 

The
Sellers have the  right to take ashore
crockery, plates, cutlery, linen and other articles bearing the Sellers’ flag
or name, provided they replace same with similar unmarked items. Library,
forms, etc., exclusively for use in the Sellers’ vessel(s), shall be excluded
without compensation. Captain’s, Officers’ and Crew’s personal belongings including
the slop chest are to be excluded from the sale, ISPS,
SMS, ISM and SMC manuals, certificates, software,
ballast water management, SOPEP and other Management documents developed by the
Sellers’ managers are excluded from this sale, as well as the following
additional items(including items on hire):

 

The
Buyers shall take over and pay for the remaining bankers
at “Platts Oilgram” price for the port of delivery or
the nearest port thereto as published 2 working days prior to delivery and unbroached
and unused lubricating oils which have
not passed through the Vessel’s system in
storage tanks  and sealed drume
and pay  at the Sellers’
last current net market  purchased
prices (excluding barging expenses)  less
any discounts as evidenced by copies of the relevant vouchers and discount
agreement. at the part and date of
delivery of the Vessel.

 

Payment
under this Clause shall be made at the same time and place and in the same
currency as the Purchase Price.

 

8.                                       Documentation

 

The
place of closing: ALPHA BANK, Piraeus Shipping Branch

 

In
exchange for payment of the Purchase Price the Sellers shall furnish the Buyers
with delivery documents, which are usually required
for the re-registration of the Vessel under Buyers’ intended flag/registry;
such documentation is to be incorporated in an Addendum to this agreement. However
the preparation and signing of this Addendum will not delay the signing of this
Agreement namely:

 

 

a)                                      Legal Bill of Sale in a form
recordable in
                           (the
country in which the Buyers are to register the Vessel), warranting that the
Vessel is free from all encumbrances, morlgages and maritime liens or any other
debts or claims whatsoever, duly notarially attested and legalized by the
consul of such country or other competent authority.

 

b)                                     Current Certificate of Ownership
issued by the competent authorities of the-flag state-of the Vessel.

 

c)                                      Confirmation of Class issued within
72 hours prior to delivery.

 

d)                                     Current Certificate issued by
the competent authorities stating that the Vessel is free from registered oncumbrarises.

 

e)                                      Certificate of Deletion of the
Vessel from the Vessel’s registry or other official evidence
of deletion appropriate to the Vessel’s registry at the time of delivery, or, in
the event that the registry does not as a matter of practice issue such
documentation immediately, a written undertaking by the
Sellers to effect deletion from the Vessel’s registry forthwith and furnish a Certificate
or other official evidence of deletion to the Buyers promptly and latest within
4 (four) weeks after the Purchase Price has been paid and the Vessel has been delivered.

 

f)                                        Any such additional
documents as may reasonably be required by the
competent authorities for the-purpose of registering the Vessel, provided the Buyers notify the
Sellers of any such documents as soon as possible
after the date of this Agreement.

 

At
the time of delivery the Buyers and Sellers shall sign and deliver to each
other a Protocol of Delivery and Acceptance confirming the date and time of
delivery of the Vessel from the Sellers to the Buyers.

 

At
the time of delivery the Sellers shall hand to the Buyers the classification
certificate(s) as well as all plans etc., which are on board the Vessel.
Other certificates which are on board the Vessel shall also be handed over to  the Buyers
unless the Sellers are required to retain same, in which case the Buyers to
have the right to take copies. Other technical documentation which may be in
the Sellers’ possession shall be promptly forwarded to the Buyers at their
expense, if they so request. The Sellers may keep the Vessel’s log books but
the Buyers to have the right to take copies of same. Also,
at the time of delivery, the Sellers are to hand to the Buyers’ representatives
a  complete
set of manuals in English relative to the main engine/auxiliaries in addition
to all other existing manuals/instruction books/plans and main engine,
generators previous overhaul reports and copies of the last oil record book.

 

9.                                       Encumbrances

 

The
Sellers warrant that the Vessel, at the time of delivery, is free from all/any charters,
encumbrances, mortgages and maritime liens or any other debts whatsoever, The
Sellers hereby undertake to indemnify the Buyers against all consequences of
claims made against the Vessel which have been incurred prior to the time of
delivery.

 

10.                            Taxes, etc.

 

Any
taxes, fees  and expenses in
connection with the purchase and registration under the Buyers’ flag shall be
for the Buyers’ account, whereas similar charges in connection with the closing
of the Sellers’ register shall be for the Sellers’ account.

 

11.                                 Condition on
delivery

 

The
Vessel with everything belonging to her shall be at the Sellers’ risk and
expense until she is delivered to the Buyers, but subject to the terms and
conditions of this Agreement she shall be delivered and taken over as she was
at the of inspection, fair wear and tear excepted. However, the Vessel shall be
delivered with it’s Special Survey and Drydock
survey passed in December, 2009 for Sellers’ account in December 2009 and
with her present class maintained
without condition/recommendation*, free of average damage affecting the
Vessel’s class, and with her classification certificates and national/international trading
certificates according to the Vessel’s present
flag, as well as all other certificates, the Vessel had at the time of signing
this M.O.A.  Inspection, valid and unextended
without condition/recommendation* by Class or the relevant
authorities at the time of

 

 

delivery,
All  CSM items
are to be up to date
at the time of delivery and valid and unextended for 6
months.

 

“Inspection”
in this Clause 11, shall mean the Buyers’ inspection according to Clause 4 a)
or 4 b), If applicable, or the Buyers’ inspection prior to the signing of this
Agreement. If the Vessel is taken over without inspection, the date of this
Agreement shall be the relevant date.

 

*                                         Notes, if any,
in the surveyor’s report which are accepted by the Classification Society
without condition/recommendation are not to be taken into account.

 

12.                                 Name/markings

 

Upon
delivery the Buyers undertake to change the name of the Vessel and alter funnel
markings.

 

13.                                 Buyers’ default

 

Should
the deposit not be paid in accordance with Clause 2, the Sellers have the right
to cancel this Agreement, and they shall be entitled to claim compensation for
their losses and for all expenses incurred together with interest. 

 

Should
the Purchase Price not be paid in accordance with Clause 3, the Sellers have
the right to cancel the Agreement, in which case the deposit together with interest
earned shall be released to the Sellers. If the deposit does not cover their
loss, the Sellers shall be entitled to claim further compensation for their
losses and for all expenses incurred together with interest.

 

14.                                 Sellers’ default

 

Should
the Sellers fall to give Notice of Readiness in accordance with Clause 5 a) or
fall to be ready to validly complete a legal transfer by the date stipulated in
line 61 the Buyers shall have the option of cancelling this Agreement provided
always that the Sellers shall be granted a  maximum of 3 banking days
after Notice of Readiness has been given to make arrangements for the
documentation set out in Clause 8. If after Notice of Readiness has been given
but before the Buyers have taken delivery, the Vessel ceases to be physically
ready for delivery and is not made physically ready again in every respect by
the date stipulated in line 61 and new Notice of Readiness given, the Buyers
shall retain their option to cancel. In the event that the Buyers elect to
cancel this Agreement the deposit together with interest earned shall be
released to them immediately. 

 

Should
the Sellers fall to give Notice of Readiness by the date stipulated in line 61
or fall to be ready to validly complete a legal transfer as aforesaid they
shall make due compensation to the Buyers for  their loss and for all
expenses together with interest if their failure is due to proven negligence
and whether or not the Buyers cancel this Agreement.

 

15.                                 Buyers’
representatives

 

After
this Agreement has been signed by both parties and the deposit has
been lodged, the Buyers have the right to place two representatives on board
the Vessel at their sole risk and expense upon arrival at a
time and port
convenient to both parties after the 1/3/2010. on or about  

 

These
representatives are on board for the purpose of familiarisation and in the
capacity of observers only, and they shall not interfere in any respect with
the operation, of the Vessel but with free  access
to all the Vessel during usual working hours. The Buyers’
representatives shall sign the Sellers’ disclaimer letter of
indemnity prior to their embarkation. 

 

16.                                 Arbitration

 

a)*                               This Agreement
shall be governed by and construed in accordance with English law and any
dispute arising out of this Agreement shall be referred to arbitration in
London in accordance with the Arbitration Acts 1996 1950 and 1979 or any
statutory modification or re-enactment thereof for the time being in force, one
arbitrator being appointed by each party. On the receipt by one
party of the nomination in writing of the other party’s arbitrator, that party
shall appoint their arbitrator within fourteen days, falling which the decision
of the single arbitrator appointed shall apply. If two arbitrators properly
appointed shall not agree they shall appoint an umpire
whose decision shall be final.

 

 

b)*                              This Agreement
shall be governed by and construed in accordance with Title 9 of the United
States Code and the Law of the State of New York and should any dispute arise
out of this Agreement, the matter in dispute shall be referred to three persons
at New York, one to be appointed by each of the parties hereto, and the third
by the two so chosen; their decision or that of any two of them shall be final,
and for purpose of enforcing any award, this Agreement may be made a rule of
the Court. 

The
proceedings shall be conducted in accordance with the rules of the Society of
Maritime Arbitrators, Inc. New York.

 

c)*                               Any dispute
arising out of this Agreement shall be referred to arbitration at London, subject to the procedures applicable there, Members of The London Maritime Arbitrators Association are to be the
arbitrators. 

The laws of England             shall
govern this Agreement. 

 

*                                         16 a),
16 b) and 16 c) are alternatives; delete whichever is not applicable. In the
absence of deletions, alternative 16 a) to apply.

 

Clause 17 is to form an Integral
part of this agreement.

 

Clause 17

 

The Sellers to confirm in writing to the best of their
knowledge and belief that Vessel under present ownership is not blacklisted by
any nation (except that under Cypriot flag vessel cannot trade to Turkey) or
the Arab Boycott league in Damascus.

 

The Sellers also to confirm in writing that to the best of their
knowledge, the vessel has not touched bottom or occasioned damage to its
underwater parts, since the time of its last drydocking in December 2009.

 

This contract is drawn up in 2
(two) Originals of even tenor and date, one to be retained by the Sellers and
one by the Buyers.

 

 

	
  /s/ J.P. McLoughlin

  	
   

  	
   

  
	
  J.P. McLoughlin

  	
   

  	
  /s/ Authorized Signatory

  
	
  For the Sellers

  	
   

  	
  For the Buyers

  
	
  Acemio Shipping Company Limited

  	
   

  	
  Cape Maria Limited

  
	
  as per Facsimile Authority

  	
   

  	
  Attorney in fact

  
	
   

  	
   

  	
  Stamatis MolarisEXHIBIT 10.9

 

NEITHER THIS WARRANT NOR THE COMMON STOCK ISSUABLE UPON EXERCISE HEREOF
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR BLUE SKY LAWS.

 

BEACON POWER CORPORATION

 

WARRANT

 

	
  Warrant No. L-1

  	
   

  	
  Dated:
  July 23, 2007        

  

 

Beacon Power Corporation, a Delaware corporation (the “Company”), hereby certifies that, for
value received, GFI Tyngsboro, LLC, a limited liability company organized under
the laws of the Commonwealth of Massachusetts, or its registered assigns in
accordance with Section 13 (the “Holder”), is entitled to purchase from the Company up to a total
of five-hundred thousand (500,000) shares of common stock, $0.01 par value per
share (the “Common Stock”), of
the Company (each such share, a “Warrant
Share” and all such shares, the “Warrant
Shares”) at an exercise price equal to $1.77 per share (as adjusted from
time to time as provided in Section 8, the “Exercise Price”), at any time and from time to time on and after
the date hereof and through and including the seventh (7th) anniversary of the date hereof (the “Expiration Date”), subject to the
terms and conditions set forth herein.  This
Warrant and 150,000 shares of Common Stock (the “Lease Shares”) are being
issued on the date hereof in connection with the entering into of that certain
Lease dated the date hereof (the “Lease”) between the Company and the Holder
with respect to the premises located at 65 Middlesex Road, Tyngsborough,
Massachusetts.

 

1.             Registration of Warrant. The Company shall register this Warrant, upon
records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the
record Holder hereof from time to time. The Company may deem and treat the
registered Holder of this Warrant as the absolute owner hereof for the purpose
of any exercise hereof or any distribution to the Holder, and for all other
purposes, absent actual notice to the contrary.

 

2.             Registration of Transfers. The Company shall register the transfer
of any portion of this Warrant in accordance with Section 13 in the
Warrant Register, upon surrender of this Warrant, with the Form of
Assignment attached hereto duly completed and signed, to the Company’s transfer
agent or to the Company at its address specified herein. Upon any such
registration or transfer, a new warrant to purchase Common Stock, in
substantially the form of this Warrant 

 

 

(any such new warrant, a “New Warrant”), evidencing the portion
of this Warrant so transferred shall be issued to the transferee and a New
Warrant evidencing the remaining portion of this Warrant not so transferred, if
any, shall be issued to the transferring Holder. The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations of a holder of a Warrant.

 

3.             Exercise and Duration of Warrants.

 

(a)           This Warrant shall be exercisable by the registered
Holder at any time and from time to time on or after the date hereof to and
including the Expiration Date provided
that the representations and warranties set forth in Section 14 are true,
and that the covenants set forth in Section 14 have been satisfied, at the
time of such exercise. At 6:30 P.M., Eastern time on the Expiration Date,
the portion of this Warrant not exercised prior thereto shall be and become
void and of no value.

 

(b)           A Holder may exercise this Warrant by delivering to
the Company (i) an exercise notice, in the form attached hereto (the “Exercise Notice”), appropriately
completed and duly signed, and (ii) payment of the Exercise Price for the
number of Warrant Shares as to which this Warrant is being exercised, and the
date such items are delivered to the Company (as determined in accordance with
the notice provisions hereof) is an “Exercise
Date.” The Holder shall not be required to deliver the original Warrant
in order to effect an exercise hereunder. Upon the execution and delivery of
the Exercise Notice, the Company shall issue a New Warrant to the Holder
evidencing the right to purchase the remaining number of Warrant Shares.

 

(c)           The Company shall have a sufficient number of
authorized but unissued and otherwise unreserved shares of Common Stock
available to issue the Warrant Shares upon exercise of the Warrant.

 

4.             Delivery of Warrant Shares.

 

(a)           Upon exercise of this Warrant, the Company shall
promptly issue or cause to be issued and cause to be delivered to the Holder a
certificate for the Warrant Shares issuable upon such exercise. Such
certificate shall bear a restrictive legend substantially the same as the
legend first set forth above.  The Holder
shall be deemed to have become holder of record of such Warrant Shares as of
the Exercise Date.

 

(b)           This Warrant is exercisable, either in its entirety
or, from time to time from the Date hereof, for a portion of the number of
Warrant Shares. Upon surrender of this Warrant following one or more partial
exercises, the Company shall issue or cause to be issued, at its expense, a New
Warrant evidencing the right to purchase the remaining number of Warrant
Shares.

 

5.             Charges, Taxes and Expenses. Issuance and delivery of certificates
for Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other incidental tax or
expense in respect of the issuance of such certificates, all of which taxes and
expenses shall be paid by the Company. The Holder shall be responsible for all
other tax liability that may arise as a result of holding this Warrant or 

 

 

receiving Warrant Shares
upon exercise hereof or transferring either this Warrant or the Warrant Shares.

 

6.             Replacement of Warrant. If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary
and reasonable bond or indemnity, if requested. Applicants for a New Warrant
under such circumstances shall also comply with such other reasonable
regulations and procedures and pay such other reasonable third-party costs as
the Company may prescribe.

 

7.             Reservation of Warrant Shares. The Company shall at all times reserve
and keep available out of the aggregate of its authorized but unissued and
otherwise unreserved Common Stock, solely for the purpose of enabling it to
issue Warrant Shares upon exercise of this Warrant as herein provided, the
number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other
contingent purchase rights of persons other than the Holder (taking into
account the adjustments and restrictions of Section 8).  The Company covenants that all Warrant Shares
so issuable and deliverable shall, upon issuance and the payment of the
applicable Exercise Price in accordance with the terms hereof, be duly and
validly authorized, issued and fully paid and nonassessable. The Company will
take all such actions as may be necessary to assure that such shares of Common
Stock may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of any securities exchange or automated
quotation system upon which the Common Stock may be listed.

 

8.             Certain Adjustments. The Exercise Price and number of Warrant Shares
issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this section.

 

(a)           Stock Dividends and Splits. If the Company, at any time while this
Warrant is outstanding, (i) pays a stock dividend on its Common Stock or
otherwise makes a distribution on any class of capital stock that is payable in
shares of Common Stock, (ii) subdivides outstanding shares of Common Stock
into a larger number of shares, or (iii) combines outstanding shares of
Common Stock into a smaller number of shares, then in each such case the
Exercise Price shall be multiplied by a fraction of which the numerator shall
be the number of shares of Common Stock outstanding immediately before such
event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event. See also Section 8(c).  Any adjustment made pursuant to clause (i) of
this paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or
distribution, and any adjustment pursuant to clause (ii) or (iii) of
this paragraph shall become effective immediately after the effective date of
such subdivision or combination.

 

(b)           Fundamental Transactions. If, at any time while this Warrant is
outstanding, (i) the Company effects any merger or consolidation of the
Company with or into another person and the Company is not the surviving party,
(ii) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (iii) any tender offer
or exchange offer (whether by the Company or another person) is completed
pursuant to which 

 

 

holders of Common Stock
are permitted to tender or exchange their shares for other securities, cash or
property, or (iv) the Company effects any reclassification of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property
(other than as a result of a subdivision or combination of shares of Common
Stock covered by Section 8(a) above) (in any such case, a “Fundamental Transaction”), then the
Holder shall have the right thereafter to receive, upon exercise of this
Warrant, the same amount and kind of securities, cash or property as it would
have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction, the
holder of the number of Warrant Shares then issuable upon exercise in full of
this Warrant (the “Alternate
Consideration”). The aggregate Exercise Price for this Warrant will not
be affected by any such Fundamental Transaction, but the Company shall apportion
such aggregate Exercise Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. If, in the case of any Fundamental Transaction, the
Alternate Consideration includes shares of stock, other securities, other
property or assets of a person other than the Company or any such successor or
purchasing person, as the case may be, in such Fundamental Transaction, then such
written agreement shall also be executed by such other person and shall contain
such additional provisions to protect the interests of the Holder as the Board
of Directors of the Company shall reasonably consider necessary by reason of
the foregoing. At the Holder’s request, any successor to the Company or
surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with the foregoing provisions and evidencing the Holder’s
right to purchase the Alternate Consideration for the aggregate Exercise Price
upon exercise thereof. The terms of any agreement pursuant to which a
Fundamental Transaction is completed shall include terms requiring any such
successor or surviving entity to comply with the provisions of this Section 8(b) and
insuring that the Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

 

(c)           Number of Warrant Shares. Simultaneously with any adjustments to
the Exercise Price pursuant to paragraph (a) of this Section, the number
of Warrant Shares that may be purchased upon exercise of this Warrant shall be
increased or decreased proportionately, so that after such adjustment the
aggregate Exercise Price payable hereunder for the increased or decreased
number of Warrant Shares shall be the same as the aggregate Exercise Price in
effect immediately prior to such adjustment.

 

(d)           Calculations. All calculations under this Section 8
shall be made to the nearest cent or the nearest 1/100th of a share, as
applicable. The number of shares of Common Stock outstanding at any given time
shall not include shares owned or held by or for the account of the Company,
and the disposition of any such shares shall be considered an issue or sale of
Common Stock.

 

(e)           Notice of Adjustments. Upon the occurrence of each adjustment pursuant to
this Section 8, the Company at its expense will promptly compute
such adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including 

 

 

a statement of the
adjusted Exercise Price and adjusted number or type of Warrant Shares or other
securities issuable upon exercise of this Warrant (as applicable), describing
the transactions giving rise to such adjustments and showing in detail the
facts upon which such adjustment is based. Upon written request, the Company
will promptly deliver a copy of each such certificate to the Holder and to the
Company’s transfer agent.

 

(f)            Notice of Corporate Events. If the Company (i) declares a
dividend or any other distribution of cash, securities or other property in
respect of its Common Stock, including without limitation any granting of
rights or warrants to subscribe for or purchase any capital stock of the
Company or any Subsidiary, (ii) authorizes or approves, enters into any
agreement contemplating or solicits stockholder approval for any Fundamental
Transaction or (iii) authorizes the voluntary dissolution, liquidation or
winding up of the affairs of the Company, then the Company shall deliver to the
Holder a notice describing the material terms and conditions of such
transaction, at least 20 calendar days prior to the applicable record or
effective date on which a person would need to hold Common Stock in order to participate
in or vote with respect to such transaction, and the Company will take all
steps reasonably necessary in order to insure that the Holder is given the
practical opportunity to exercise this Warrant prior to such time so as to
participate in or vote with respect to such transaction; provided, however,
that the failure to deliver such notice or any defect therein shall not affect
the validity of the corporate action required to be described in such notice.

 

9.             Payment of Exercise Price. The Holder shall pay the Exercise Price
in immediately available funds

 

10.           Fractional Shares. The Company shall not be required to issue or cause
to be issued fractional Warrant Shares on the exercise of this Warrant. If any
fraction of a Warrant Share would, except for the provisions of this Section,
be issuable upon exercise of this Warrant, the number of Warrant Shares to be
issued will be rounded up to the nearest whole share.

 

11.           Notices. Any and all notices or other communications or
deliveries hereunder (including without limitation any Exercise Notice) shall
be in writing and shall be deemed given and effective on the earliest of (i) the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 6:30 p.m.
(New York City time) on a Trading Day, (ii) the next Trading Day after the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section on a day that
is not a Trading Day or later than 6:30 p.m. (New York City time) on any
Trading Day, (iii) the Trading Day following the date of mailing, if sent
by nationally recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is required to be given. “Trading Day”
means (a) any day on which the Common Stock is listed and traded on the
Nasdaq Stock Market, or (b) if the Common Stock is not then listed and
traded on the Nasdaq Stock Market, then a day on which trading occurs on either
the New York Stock Exchange or the American Stock Exchange (together with the
Nasdaq Stock Market, each an “Eligible Market”) (or any successor thereto), or (c) if
trading ceases to occur on an Eligible Market (or any successor thereto), any
day other than Saturday, Sunday or other day on which commercial banks in New
York City are authorized or required by law to remain closed.

 

 

12.           The address for such notices or communications shall
be as set forth below:

 

(a)           if to the Company, at the office of the Company, 65
Middlesex Road, Tyngsboro, MA, Attention: 
James Spiezio, with copies to Edwards Angell Palmer & Dodge
LLP, 111 Huntington Avenue, Boston, Massachusetts 02199, Attention:  Albert Sokol, or

 

(b) if to the
Holder, c/o GFI Partners, 133 Pearl Street, Suite 400 Boston, MA 02110,
Attn: Steven E. Goodman with a copy to Henshon Parker Vyadro, P.C. 84 State
Street, Suite 760 Boston, MA  02109
Attn: F. Robert Parker, Jr.

 

13.           Warrant Agent. The Company shall serve as warrant agent under this
Warrant. Upon 30 days’ notice to the Holder, the Company may appoint a new
warrant agent. Any corporation into which the Company or any new warrant agent
may be merged or any corporation resulting from any consolidation to which the
Company or any new warrant agent shall be a party or any corporation to which
the Company or any new warrant agent transfers substantially all of its
corporate trust or shareholders services business shall be a successor warrant
agent under this Warrant without any further act. Any such successor warrant
agent shall promptly cause notice of its succession as warrant agent to be
mailed (by first class mail, postage prepaid) to the Holder at the Holder’s
last address as shown on the Warrant Register.

 

14.           Transferability.

 

This Warrant may not be
assigned by the Company except to a successor in the event of a Fundamental
Transaction.

 

NO INTEREST IN THIS WARRANT MAY BE SOLD, ASSIGNED OR OTHERWISE
TRANSFERRED BY THE HOLDER WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY, NOT
TO BE UNREASONABLY WITHHELD IN THE EVENT THAT HOLDER COMPLIES WITH THIS
CLAUSE.  NEITHER THIS WARRANT NOR THE
COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCCORDINGLY, MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED OR OFFERED FOR SAME EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR BLUE SKY LAWS, TO BE DOCUMENTED IN PART BY THE HOLDER
PROVIDING THE COMPANY WITH AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY STATING THAT SUCH SALE, TRANSFER OR ASSIGNMENT IS EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

 

15.           Holder’s Representations, Warranties and Covenants

 

(a)           At the time the Holder was offered the Warrant Shares
and Lease Shares, it was, and on the date hereof, it is, and on the date of any
exercise hereof, the Holder will be, an “accredited investor” as defined in Rule 501(a) under
the Securities Act.

 

(b)           Holder has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating
the merits and risks of the investment in this Warrant, the Lease Shares and
the Warrant Shares and has so evaluated the merits and risks of such investment
and shall evaluate such merits and risks before any exercise hereof.  Holder is able to bear the economic risk of
an investment in the Warrant, the Lease Shares and the Warrant Shares indefinitely
and is able to afford a complete loss of such investment.

 

(c)           The Holder is purchasing this Warrant and the Lease
Shares, and upon any exercise hereof will purchase the Warrant Shares, for the
Holder’s account and not for the account of any other person, and without a
view to the distribution thereof.  The
Holder acknowledges that this Warrant and the Lease Shares are, and the Warrant
Shares will be, “restricted securities” (as that term is defined in Rule 144
under the Securities Act) and may not be resold except pursuant to an effective
registration statement or pursuant to an exemption from the registration
requirements of the Securities Act and in accordance with all applicable state
laws.

 

16.           Registration Rights for the Lease Shares. 
The Company shall, at its sole expense, prepare and file a registration
statement (the “Registration Statement”) with the Securities and Exchange
Commission within 30 days after the date of this Warrant (subject to reasonable
extension at the Company’s discretion, but in any event for no more than 30
additional days) to register the Lease Shares within a commercially reasonable
time.  The Company shall endeavor in good
faith and diligently to cause the Registration Statement to be declared
effective by the Securities and Exchange Commission, and shall endeavor to keep
it continuously effective under the Securities Act until the earlier of (i) the
first anniversary of the date hereof or (ii) the date all of the Lease
Shares have been sold publicly.

 

17.           Miscellaneous

 

(a)           The Company will not, by amendment of its governing
documents or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, but will at all times in good faith assist in the carrying out of
all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder against impairment.
Without limiting the generality of the foregoing, the Company (i) will not
increase the par value of any Warrant Shares above the amount payable therefor
on such exercise, (ii) will take all such action as may be reasonably
necessary or appropriate in order that the Company may validly and legally
issue fully paid and nonassessable Warrant Shares on the exercise of this
Warrant, and (iii) will not close its shareholder books or records in any
manner which interferes with the timely exercise of this Warrant.

 

(b)           GOVERNING LAW; VENUE; WAIVER OF JURY TRIAL. ALL
QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION
OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE INTERNAL LAWS OF

 

 

THE COMMONWEALTH OF
MASSACHUSETTS WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.
EACH PARTY AGREES THAT ALL LEGAL PROCEEDINGS CONCERNING THE INTERPRETATIONS,
ENFORCEMENT AND DEFENSE OF THE TRANSACTIONS CONTEMPLATED BY ANY OF THE
TRANSACTION DOCUMENTS (WHETHER BROUGHT AGAINST A PARTY HERETO OR ITS RESPECTIVE
AFFILIATES, DIRECTORS, OFFICERS, SHAREHOLDERS, EMPLOYEES OR AGENTS) SHALL BE
COMMENCED EXCLUSIVELY IN THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF
BOSTON, MASSACHUSETTS. EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE
EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF
BOSTON, MASSACHUSETTS FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED
HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THIS WARRANT), AND
HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR
PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF
ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO
PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY
THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE
OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER
THIS WARRANT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT
SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED
TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS WARRANT OR ANY OF THE TRANSACTION DOCUMENTS
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. IF EITHER PARTY SHALL
COMMENCE AN ACTION OR PROCEEDING TO ENFORCE ANY PROVISIONS OF THIS WARRANT OR
ANY TRANSACTION DOCUMENT, THEN THE PREVAILING PARTY IN SUCH ACTION OR
PROCEEDING SHALL BE REIMBURSED BY THE OTHER PARTY FOR ITS REASONABLE ATTORNEYS
FEES AND OTHER REASONABLE COSTS AND EXPENSES INCURRED WITH THE INVESTIGATION,
PREPARATION AND PROSECUTION OF SUCH ACTION OR PROCEEDING.

 

(c)           The headings herein are for convenience only, do not
constitute a part of this Warrant and shall not be deemed to limit or affect
any of the provisions hereof.

 

(d)           In case any one or more of the provisions of this
Warrant shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Warrant shall not
in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a
commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

 

 

(e)           The holder of this Warrant shall have no rights as a
stockholder of the Company by virtue of holding this Warrant.

 

(f)            This Warrant shall be binding on and inure to the
benefit of the parties hereto and their respective successors and assigns
pursuant to transfers in accordance with Section 13. Subject to the
preceding sentence, nothing in this Warrant shall be construed to give to any
person other than the Company and the Holder any legal or equitable right,
remedy or cause of action under this Warrant.

 

(g)           This Warrant may be amended only in writing signed by
the Company and the Holder and their successors and assigns pursuant to
transfers in accordance with Section 13.

 

 

IN WITNESS WHEREOF, the Company has caused this
Warrant to be duly executed by its authorized officer as of the date first
indicated above.

 

 

	
   

  	
  BEACON POWER CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James M. Spiezio

  
	
   

  	
   

  	
  Name:  James M. Spiezio

  
	
   

  	
   

  	
  Title:  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GFI TYNGSBORO, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven E. Goodman

  
	
   

  	
   

  	
  Name:  Steven E. Goodman

  
	
   

  	
   

  	
  Title:  Manager

  

 

 

FORM OF EXERCISE NOTICE

 

(To be executed by the Holder to exercise the right to
purchase shares of Common Stock under the foregoing Warrant)

 

To:          Beacon Power Corporation

 

The undersigned is the Holder of Warrant No.               
(the “Warrant”) issued by Beacon
Power Corporation, a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined
have the respective meanings set forth in the Warrant.

 

1.             The Warrant is currently
exercisable to purchase a total of
                            
Warrant Shares.

 

2.             The undersigned Holder
hereby exercises its right to purchase
                              
Warrant Shares pursuant to the Warrant.

 

3.             The holder shall pay the sum
of
$                        
to the Company in accordance with the terms of the Warrant.

 

4.             Pursuant to this exercise,
the Company shall deliver to the holder
                              
Warrant Shares in accordance with the terms of the Warrant.

 

5.             Following this exercise, the
Warrant shall be exercisable to purchase a total of
                            
Warrant Shares.

 

6.             The representations and
warranties set forth in Section 14 of the Warrant are true, and the
covenants set forth in Section 14 of the Warrant have been satisfied, on
the date hereof.

 

	
  Dated:   ,

  	
  Name of Holder:

  
	
   

  	
   

  
	
   

  	
  (Print)

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  (Signature must conform in all respects to name of holder as
  specified on the face of the Warrant)

  

 

 

FORM OF
ASSIGNMENT

 

[To be completed and signed only upon transfer of
Warrant]

 

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto                                                                 
the right represented by the within Warrant to purchase
                        
shares of Common Stock of Beacon Power Corporation to which the within Warrant
relates and appoints
                                
attorney to transfer said right on the books of Beacon Power Corporation with
full power of substitution in the premises.

 

	
  Dated:   ,

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature
  must conform in all respects to name of holder as specified on the face of
  the Warrant)

  
	
   

  	
   

  
	
   

  	
  Address of Transferee

  
	
   

  	
   

  
	
  In the presence of:

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