Document:

Exhibit
10.7

 

	
   

  	
  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.

  
	
   

  
	
  MEMORANDUM OF AGREEMENT

  
	
  Dated: 28
  June 2010

  

 

Genco Diocletian Limited,
a

Marshall Islands
corporation                   ,
hereinafter called the Sellers, have agreed to sell and —Melos LLC, a Marshall
Islands limited liability company hereinafter called the Buyers, have agreed to
buy

 

Name; Angor

Classification
Society/Class: Bureau Veritas I + HULL +
MACH, Bulk Carrier CSR BC-A (holds 2 & 4 may be empty), ESP, GRAB [4],
CPS [WBT], Unrestricted Navigation, + VeriSTAR-HULL; +AUT-UMS; MON-SHAFT;
INWATER SURVEY

 

	
  Built: 2009

  	
  By: Yangzhou Dayang Shipbuilding Industry Co., Ltd

  
	
   

  	
   

  
	
  Flag: Malta

  	
  Place of Registration: Valletta

  
	
   

  	
   

  
	
  Call Sign: 9HZN9

  	
  Grt/Nrt: 3117/18159

  
	
   

  	
   

  
	
  IMO Number: 9347889

  	
   

  

 

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

 

Definitions

 

“Banking days” and “Working
days” are days on which banks
are open both in the country of the currency stipulated for the Purchase Price
in Clause 1 and in the
place of closing stipulated in Clause 8.

 

“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$33,100,000

 

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 by 30 June 20l0.

 

This deposit shall be
placed with DnB NOR Bank ASA, London and held 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.

 

3.             Payment

 

The said Purchase Price, less the 10% deposit paid in accordance with Clause 2,  shall be paid in full free of bank charges to such bank account as the Sellers may notify
to 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

 

This
document is a computer generated SALEFORM 1993 from printed by authority of the
Norwegian Shipbrokers’ Association. Any insertion or deletion to the form must
be clearly visible. In the eventof the 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 Norewegian 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.

 

 

have also inspected the
Vessel at/in on                 
on                 
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.

 

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 15, 7, and 3 days approximate
notice of the estimated time and 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 safely afloat at a safe
and accessible berth or anchorage or port or buoy within ports limit and always
within IWL in the Sellers’ option. The port of delivery shall not be within
jurisdictions that are prohibited by the vessel’s flag state, the United
Nations, the European Union and the United States of America. 

 

Expected time of
delivery:

 

Date of cancelling (see Clauses
5 c), 6 b) (iii) and 14): 31
August 2010

 

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 two (2) working days 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 two (2) working days 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 5a) and 5c) 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

 

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 of
the Vessel’s underwater parts below the deepest loadline by a diver
approved by the Classification Society prior to the delivery of the Vessel at the port of delivery immediately upon the
Vessel’s arrival there and without undue delay. The Sellers shall at
their cost make the Vessel available for such inspection and arrange Class attendance, however the
fees for Class attendance shall be dealt with in accordance with the provisions
of this Agreement. The extent of the inspection and the conditions under
which it is performed including clarity
of water which shall be conducive for this underwater inspection 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. The Sellers will give at least five
(5) business days notice to the Buyers of the time they intend to make the
Vessel available for such inspection. Buyers’ failure to appoint divers
approved by class or attend underwater inspection as per the Sellers’
notification will be deemed a waiver of its rights to inspect the Vessel’s
underwater parts.

 

The
Buyers’ and the Sellers’ representatives have the right to attend this
underwater inspection without inteference.

 

(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 dry-docking 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 the - port of drydocking 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/waiting,
but limited to a maximum of sixty (60)
running days.

 

(iv)          However in case
Class imposes a condition of class that does not require a dry-docking repair
before next scheduled dry-docking, the Sellers shall pay to the Buyers the
estimated cost to repair such damage in a way which is acceptable to Class,
which to be the direct cost to repair such damage only and shall not take into
account any deviation, dry-dock dues/general expenses and/or loss of time. This
cost shall be the average cost of two quotations from qualified shipyards in
the delivery range, one obtained by the Buyers and one obtained by the Sellers.
The cost of repair so calculated shall be deducted from the balance of the
purchase money at the time of delivery.

 

C)            If the Vessel is drydocked pursuant to 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*. If
the tailshaft is drawn
regardless by whom ordered then the cancelling date shall be automatically
extended by the time required to draw the tailshaft and put it back in place as
required by the Classification Society.

 

(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.

 

If
the Vessel is delivered at a port or place where bunkers and lubricants are not
available, the Vessel will be delivered with sufficient quantity of bunkers and
lubricant to sail to the nearest port where bunkers and lubricants are
available for the Vessel.

 

7.             Spares/bunkers, etc.

 

The Sellers shall deliver
the Vessel to the Buyers with everything belonging to her on board and on Shore
including grabs and fitted or portable
machines. All spare parts and spare equipment  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. The Sellers are not required to replace
spare parts 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 shall be included in the sale without
extra. Broached/unbroached unused stores and provisions shall be included in
the sale and be taken over by the Buyers without extra payment. The Vessel has never had a spare propeller
nor a spare tailshaft.

 

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, as well as Owners’/Managers’
directives/rules/publications/computer internal software and the following
additional items (including items on hire):

 

The Buyers shall take
over and pay extra at the Sellers’ last
net purchased prices excluding barging and delivery and as evidenced by
invoices or copies thereof for the remaining bunkers and unused
lubricating and hydraulic oils
in storage tanks which has not passed
through the

 

 

Vessel’s system and/or sealed drums and palls. Payment under this clause shall be made at the same time
and place and in the same currency as the Purchase Price.

 

8.             Documentation

 

In exchange for payment
of the full Purchase Price along with any other payments called for
in accordance with this Agreement the Sellers shall
furnish the Buyers with delivery Documents as reasonably required by the Buyers for their registration of the Vessel
to be advised by the Buyers in good time and to be incorporated in an Addendum
to 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.

 

9.             Encumbrances

 

The Sellers warrant that
the Vessel, at the time of delivery, (subject to the provisions as set out
in Clause 20) -is free from all charters, encumbrances, contracts of affreightment, 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.

 

Furthermore:

 

a)             The Vessel
shall be delivered without crew on board. The Vessel shall be delivered
stowaway free and cargo free. The Buyers shall not absorb any Vessel personnel
from the Sellers nor shall they be responsible for any crew repatriation or
termination costs or expenses relating to the crew. The Sellers will indemnify
and hold the Buyers harmless for any costs, expenses or liabilities pertaining
to the crew and the Vessel.

 

b)            The Sellers
shall indemnify and hold the Buyers harmless from any liablity, costs, expenses
(including reasonable legal fees) or obligations relating to the Vessel of any
nature (whether absolute, accrued, contingent or otherwise) in respect of any
fact, condition or circumstances existing or occuring on or prior to the date
of delivery, including all liabilities, claims, costs and expenses which may
attach to the Vessel after delivery relating to matters prior to 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. The Sellers
undertake to continue its normal standards of operation and maintenance until
delivery.

 

The Vessel shall be
delivered with her present class
maintained without condition, free of average damage affecting the Vessel’s
class, and with all her
classification certificates and National/international trading certificates,
as well as all other certificates the Vessel had at the time of inspection,
clean, valid and unextended for a minimum
of three (3) months without condition by Class or the relevant
authorities at the time of delivery. All
continuous survey cycles shall be fully up to date 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.

 

Notwithstanding any documentation presented by the
Sellers at the time of delivery, the Vessel at the time of delivery will be in
such condition that will entitle her to be classed in the highest status of
condition on the records of the Classification Society.

 

The
Vessel shall be delivered with cleanswept holds.

 

*              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 fail to give Notice of Readiness in accordance with Clause 5a)
or fail 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 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 maximum two representatives on board the
Vessel up to 30 days prior to delivery who may remain on board the Vessel at
their sole risk and expense until delivery.

 

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 Sellers’ operation of the Vessel/the Sellers’ work. The Buyers’
representatives shall sign the Sellers’ usual P&l 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 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.

 

Clause
17.

 

On
delivery the Sellers shall hand to the Buyers a letter of undertaking stating
that to the best of the Sellers’ knowledge, the Vessel under present ownership
has not touched bottom nor grounded since Vessel’s last drydocking and that she
has not been infested by Gypsy Moth.

 

 

Clause
18

 

The
Sellers agree to cooperate in providing technical data as requested by the
Buyers after agreement has been reached on price and main terms of offer. This
may include but shall not be limited to technical specifications, plans and
drawings, classification records, ultrasonic gaugings.

 

Clause
19

 

Any
notice or communication to be given under this Agreement shall be given by
letter and e-mail or fax at the following address/fax number:

 

In the
case of Buyers:

 

c/o
Maritime Equity Partners LLC

299
Park Avenue - 2nd Floor

New
York, New York 10171

Fax:
212-763-5608

 

In the
case of Sellers:

 

c/o
Genco Shipping & Trading Limited

299
Park Avenue - 20th Floor

New
York, New York 10171

Fax:
646-443-8551

 

A
demand which is delivered personally or posted shall be deemed to be served and
shall take effect at the time when it is delivered and a demand which is sent
by fax or e-mail shall be deemed to be served and shall take effect on the next
business day after its transmission is completed.

 

Clause
20

 

The
Sellers and the Buyers agree that it is their intention to transfer the Vessel
together with the benefit of the existing charter dated 30 April 2009 (the
“Charter”) between Angor SaSu and TMT Bulk Corporation (the “Charterers”).

 

After
the date the deposit is paid until at least thirty (30) days prior to the
cancellation date, or such other date as the Buyers and the Sellers agree, the
Sellers shall use their best efforts to novate and transfer to the Buyers the
terms of the Charter in accordance with the novation agreement between Angor
SaSu, the Buyers and the Charterers (the “Novation Agreement”) in the form
agreed between the Sellers and the Buyers, subject to any amendments requested
by the Charterers and agreed by the parties and on the basis that it shall
effect a transfer of the rights and liabilities under the Charter from Angor
SaSu to the Buyers as a result of the change of ownership under this Agreement.

 

In
the exercise of its best efforts to procure such novation and transfer by the
Charterers, Angor SaSu shall consult with the buyers immediately following
signature of this Agreement on its intended strategy on how best to approach
the Charterers regarding such novation and tranfer and shall thereafter proceed
on that basis.

 

In
the event that either:

 

1.             the Charterers, Angor Sasu
and the Buyers execute the Novation Agreement, the Sellers and the Buyers shall
proceed with the sale of the Vessel in accordance with this Agreement as soon
as possible following such signature; or

 

2.             on or before the date thirty
(30) days prior to the cancellation date, or such other date as the Buyers and
the Sellers agree, the Charterers either: (a) refuse to enter into a novation
agreement and/or the terms of the Novation Agreement cannot be agreed and/or
the Novation Agreement is not executed

 

 

by
the parties to it; and/or (b) the Charterers terminate the Charter as a result
of the change of ownership (or indicate that they will do so following such
change), then the Buyers shall remain obligated to proceed with the performance
of their obligations under this Agreement and to purchase and accept delivery
of the Vessel pursuant to and in accordance with the terms of this Agreement
and in any event before the cancellation date but on the basis that the Vessel
shall be sold by the Sellers and purchased and accepted by the Buyers without
the Charter and clause 9 of this Agreement shall be construed accordingly and
the Vessel shall be delivered free of charter.

 

Clause
21

 

Clauses
9 and 10 of this Agreement shall survive the closing of the purchase of the
Vessel,

 

	
  Genco Diocletian
  Limited 

  The
  Sellers

  	
  Melos LLC 

  The
  Buyers

  
	
  

  	
  

  
	
  Attorney in FactExhibit
10.8

 

	
   

  MEMORANDUM OF AGREEMENT

   

   

   

  Dated:28 June 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.

  

 

Genco Diocletian Limited,

a Marshall Islands
corporation,

 

hereinafter called the
Sellers, have agreed to sell, and Massallia LLC, a Marshall Islands limited
liability company, hereinafter called the Buyers, have agreed to buy

 

Name: Antheor (Hull No. 3032), being a 58,000 tdw
Handymax Bulk Carrier

Classification
Society/Class: BV I HULL + MATCH + CSR Bulk
Carrier ESP BC-A, Holds no 2, 4 may be empty, unrestricted navigation, VERISTAR
HULL, INWATER SURVEY, AUT-UMS, MONSHAFT

 

	
  Built:
             , (See Clause 5 (b))

  	
   

  	
  By: Yangzhou Dayang Shipbuilding Co., Ltd, PRC

  
	
   

  	
   

  	
   

  
	
  Flag: Panama or equivalent flag

  	
   

  	
  Place of Registration: N/A

  
	
   

  	
   

  	
   

  
	
  Call Sign: N/A

  	
   

  	
  Grt/Nrt: about 32,450 GT about 18,650 NT

  
	
   

  	
   

  	
   

  
	
  Register Number: N/A

  	
   

  	
   

  

 

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

 

Definitions

 

“Banking days” are days on
which banks are open both in the country of the currency stipulated for the
Purchase Price in Clause 1 and in the place of closing stipulated in Clause
8.

 

“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$36,200,000

 

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 by 30 June 2010.

 

This deposit shall be placed
with DnB NOR Bank ASA, London and
held 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.

 

3.                                      Payment

 

The said Purchase Price, less the 10% deposit paid in accordance with
Clause 2,  shall be paid in
full free of bank charges to such bank
account as the Sellers may notify to 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 - see Clause 21

 

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 a
discrepancies between the original approved document and this computer
generated document.

 

 

5.                                      Notices,
time and place of delivery

 

a)                                      The Sellers
shall keep the Buyers regularly posted with regard to the actual delivery date
of the Vessel and give the Buyers 30, 15, and 10 days approximate notice of
delivery and  3 and 1 days definite Notice of Readiness for
delivery of the Vessel.

 

The Buyers hereby
acknowledge that the delivery of the Vessel by the Sellers under this Agreement
is “back-to-back” with delivery of the Vessel to the trading house by the
Builder and immediately thereafter transfered to the Sellers by the trading
house, and that neither the trading house nor the Sellers intend to effect
intermediate registration of the Vessel on their title prior to delivery of the
Vessel to the Buyers hereunder.

 

b)                                     The Vessel
shall be delivered safely afloat at a safe berth or safe anchorage within         or
nearby Yangzhou Dayang Shipyard, PRC in the Sellers’ option.

 

Expected time of delivery: between 1 November 2010 and 31 December 2010 in the Sellers’ option

Date of cancelling                        
Article VII of Shipbuilding Contract to apply in full but the Sellers
shall not exercise any right of cancellation of the Shipbuilding Contract or
the “back-to-back” contract with the trading house without the consent of the
Buyers.

 

 

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.                                      NO Drydocking/Divers Inspection

 

 

7.                                      Spares/bunkers, etc.

 

The Sellers shall deliver
the Vessel to the Buyers with everything belonging to her on board and on Shore
and on  order with all
those parts mentioned in the Shipbuilding Specifications. All spare
parts and spare equipment including belonging to the Vessel whether on board or
not shall become the Buyers’ property. Forwarding charges, if any, shall be for
the Buyers’ account. The Sellers are not required to replace spare parts 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 shall be included in the sale
without extra payment. Unused stores and provisions shall be included in the
sale and be taken over by the Buyers without extra payment. Spare parts and equipment, radio and
navigational equipment are to be as per Shipbuilding Specifications.

 

All
plans and drawings and other documents that are to be delivered to the Sellers
by the Shipbuilder according to the Shipbuilding Contract and Shipbuilding
Specifications are included in the sale and must be handed to the Buyers at the
time of delivery.

 

The
Buyers are to take over and pay extra for in service and stores: bunkers,
greases, luboils, hydraulic oils, fresh water and other unbroached consumable
stores supported by relevant invoices/vouchers.

 

8.                                      Documentation

 

The place of closing: In the Sellers’ option

 

In exchange for payment of
the full Purchase Price along with any other payments called for in
accordance with this Agreement, the Sellers shall furnish the Buyers
with delivery documents as reasonably
required by the Buyers for their registration of the Vessel to be advised by
the Buyers in good time and to be incorporated in an Addendum to this Agreement.

 

 

9.                                      Encumbrances

 

The Sellers warrant that the
Vessel, at the time of delivery, is free from all charters, contracts of affreightment, 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 in accordance with the terms of this Agreement and the Shipbuilding
Contract and Shipbuilding Specifications as reviewed and accepted by the Buyers
with her class maintained without any recommendation*, save in the respect of classification society
requirements which customarily apply
to newly built vessels and which can only be satisfied post delivery, free
of damage affecting the Vessel’s class, and with all her classification certificates and national and international trading certificates
issued, valid for such minimum period
customarily issued by class or the relevant authorities at the time of
delivery. The Buyers shall accept any interim/short term/provisional
certificates as issued by the Class at the time of delivery from the
Builder. Buyers shall deal directly with Class for full term certificates
after delivery of the Vessel.

 

 

12.                               Name/markings - see Clause 19

 

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 from the Buyers.

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 from the Buyers.

 

14.                               Sellers’ default

 

Should the Sellers fail to
give Notice of Readiness in accordance with Clause 5a) or fail 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 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 - see Clause 17

 

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 Act 1996 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 seven (7) days, failing which the
decision of the single arbitrator appointed shall apply. The two
(2) arbitrators so appointed shall forthwith appoint a third arbitrator.

 

 

17.                                 Supervision and
plan approval during construction of the Vessel to be carried out by S.T.C.O. (Setaf
Technical Control Organisation) managed from Paris using a site team of
qualified/experienced personnel in accordance with the Sellers’ usual standard.
The Buyers are to have the right to place one observer at Yangzhou Dayang
Shipyard, PRC for up to 2 (two) months prior to delivery of the Vessel to the
Buyers. This observer shall form part of Setaf SAS’s supervision team but all
costs connected with his stay at the shipyard in China are to be for the
Buyers’ account. This observer shall have no authority whatsoever in the
construction, drawing approval or any other matter relating to the Vessel. In
any remark, the Buyers’ observer shall only report to Setaf SAS’s representative.

 

The Buyers shall also have
the right for their Captain and Chief Engineer to attend Vessel’s sea trial.

 

18.                                 The Sellers
undertake upon delivery of the Vessel to the Buyers to transfer to the Buyers
the Builder’s guarantee of material and workmanship as per Shipbuilding
Contract Article IX -Warranty of Quality and undertake to obtain the
Builder’s consent to the transfer in favour of Buyers latest at time of delivery.

 

If Setaf SAS pursuant to the
Shipbuilding Contract have a claim for liquidated damages for delayed delivery
or deficiencies in the Vessel, the amount(s) specified as agreed
liquidated damages in the Shipbuilding Contract shall be paid to the Buyers by
way of reduction of the Purchase Price (it being understood and agreed by
Sellers and Buyers that any such reduction of Purchase Price, or any other
reduction in accordance with Clause 18 is by way of liquidated damages and not
by way of penalty).

 

The Vessel shall be
delivered to the Buyers only once she is in all respects ready in accordance
with the Shipbuilding Contract and Specifications. However the Buyers shall
accept the Vessel if Setaf SAS is obliged to take delivery of the Vessel under
the Shipbuilding Contract Article III always with the provisions that any
liquidated damages are transferred to the benefit of the Buyers.

 

19.                                 The Vessel is
to be built in accordance with the full Specifications, makers lists, plans and
all documentation shall not be changed or amended in any way by the Buyers. The
Buyers shall have the right to nominate the name of the Vessel and the funnel
mark, details and drawings of which shall be provided by the Buyer, it being
agreed that any additional cost for work/paint over and above what is provided
for on the Shipbuilding Contract shall be for the Buyers’ account.

 

The vessel shall be
delivered without grabs, however the cranes shall be delivered with necessary fittings
for operating electro hydraulic grab of SMAG make. 18cbm grabs will be Buyers’
supply and the Sellers shall have no responsibility in respect thereof except
that they shall arrange for the supply of one set of such grabs to the Buyers
at cost of EUROS 246,000 (two hundred and forty six thousand) for which the
Buyers shall pay extra at the time of delivery.

 

20.                                 Any references in
this MoA to the ‘Shipbuilding Contract’ shall be deemed to refer to the Shipbuilding
Contract provided to Buyers.

 

Any reference in this MOA to
the “Specifications” shall be deemed to refer to the following:

 

Makers Lists

Building
Specifications/comments to

GA-plan, SDA-BC58KA-100-002,
revised 15.04.2008

 

21.                                 This sale is
outright and definite, subject only to the terms and conditions of this
Agreement. This Agreement shall be promptly signed and exchanged by fax by the
Sellers and the Buyers, with first and second originals to be executed
thereafter.

 

22.                                 It isessential
to both the Buyers and Sellers that this sale and all further discussions shall
remain strictly private and confidential and not to be released to any third
parties except as required under applicable law, including without limitation,
securities laws, rules and regulations, and rules and regulations of
any applicable stock exchange.

 

 

23.                                 On delivery the
Seller shall provide the Buyer with all the documentation relating to the
vessel received from the trading house and the builder.

 

24.                                 Clauses 9 and
10 of this Agreement shall survive the closing of the purchase of the Vessel.

 

	
  Genco Diocletian Limited

  	
   

  	
  Massallia LLC

  
	
  The Sellers

  	
   

  	
  The Buyers

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  

  
	
  Attorney in Fact

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