Document:

Exhibit 4.42

NORD/LB

04 April 2016 Private & Confidential

Binding Term Sheet

for

TOP SHIPS Inc

USD 23,185,000

Post-Delivery Term Loan Facility for the

financing of one 50,000dwt Eco design Product

Tanker new building to be built at Hyundai

Vinashin with hull no. S414

 

	
NORD/LB  

	
Private & Confidential

 

 

This Binding Term Sheet summarizes certain terms and conditions under which we are prepared to grant the Facility and is strictly subject to loan and security documentation to be in form and substance satisfactory to Nord LB.

	 	
THE PARTIES

 

	
Borrower:

	
Monte Carlo Seven Shipping Company, Liberia

 

	
Sponsor:

	
Top Ships Inc .

 

	
Guarantor:

	
Top Ships Inc.

 

	
Lender:

	
NORDDEUTSCHE LANDESBANK GIROZENTRALE,

 Hannover Germany

 

	
Security Agent:

	
NORDDEUTSCHE LANDESBANK GIROZENTRALE,

 Hannover Germany

 

	
Facility Agent:

	
NORDDEUTSCHE LANDESBANK GIROZENTRALE,

 Hannover Germany

 

	
Swap Bank:

	
NORDDEUTSCHE LANDESBANK GIROZENTRALE,

 Hannover Germany

 

	
Account Bank:

	
NORDDEUTSCHE LANDESBANK GIROZENTRALE,

 Hannover Germany

 

	
Initial Charterer

	
Stena Weco AS, Rungsted Kyst, Denmark

 

	
Other Parties:

	
e.g. Time or Bareboat Charterer, CoA Party, C1RR Agent, Technical Ship Manager, Commercial Ship Manager, the Seller in case of vessel resale, etc.

 

	 	
THE VESSEL

 

	
Vessel:

	
50,000 dwt Product Tanker my "STENAWECO EXCELLENCE" (the "Vessel"). Builder's Hull no. S414, to be delivered in 92 2016

 

	
Shipyard:

	
Hyundai Vinashin, Vietnam

 

	
Shipbuilding Cost:

	
The Vessel's aggregate shipbuilding cost amounts up to USD 30,600,000 plus additional costs of USD 115,000.

 

	
Shipbuilding Contract:

	
A contract between the Shipyard and the Borrower dated 13th April 2013, as amended and supplemented from time to time. The terms and conditions of the Shipbuilding Contract must be fully acceptable to the Lender.

 

	
Delivery:

	
The scheduled delivery date according to the Shipbuilding Contract (30th April 2016) (the "Contract Delivery Date") or such other date on which the actual delivery of the Vessel takes place (the "Delivery").

 

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Employment:

	
The Vessel will be subject to a time charter agreement (the "Time Charter") to be entered into between the Borrower and the Initial Charterer under which the Borrower will charter the Vessel to the Initial Charterer from its Delivery at a gross rate of USD 16,200 per day.

 

Under the respective Time Charter, charter hire shall cover all the liabilities of the Borrower towards the Lender under the financing agreements and the hire payable to the Borrower under the Time Charter shall be sufficient to cover the debt service (principal, interest and any other amounts) which falls due and payable under the Facility as well as all operating expenses and any other amounts.

 

The Initial Charterer will charter the Vessel from the Borrower for a period no shorter than 3 years

.

	 	
THE FACILITY

 

	
Facility:

	
Senior secured term loan facility. The Facility shall comprise a post-delivery loan (the "Post-Delivery Loan").

 

	
Purpose:

	
Partial Post-Delivery financing of the Vessel.

 

	
Project enlargement Clause:

	
Due to the pre-discussion about the potential extension by structuring a Senior loan facility for Hull S414 and hull S417 and the current decision to go ahead with Hull S414 Lender request the right of first refusal to extend this project and arrange a total financing of both mentioned vessels.

 

It is agreed that Lender's right is limited to a firm commitment if term sheet is provided not later than 15 April 2016 and terms are on a mutual agreed basis.

 

	
Facility Amount

	
Up to the lower of (i) 75.5% of the final Shipbuilding Cost, (ii) 65.0% of the fair market value ("FMV") of the Vessel at Delivery and (iii) USD 23,185,000 (the "Initial Facility Amount").

 

FMV according to Security Coverage max. 30 days prior to delivery of the respective vessel.

 

	
Currency:

	
USD only

 

	
Term of the Facility:

	
7 years from the Vessel's Drawdown.

 

	
Equity:

	
To be provided upfront Drawdown.

 

	
Drawdown:

	
Subject to the fulfilment of the Conditions Precedent:

 

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Private & Confidential

 

	 	
Post-Delivery Loan: upon Delivery of the Vessel.

 

The respective drawdown notice has to be provided in writing and at least five (5) business days in advance.

 

	
Repayment Profile:

	
Post-Delivery Loan:

 

12 consecutive, equal, quarterly instalments of USD 511,450 each, commencing 3 months after Drawdown followed by 16 consecutive, equal, quarterly instalments of USD 473,000 and a balloon payment of USD 9,479,600 at the end of the Term.

 

Payments must be free of any set-off, deductions or withholding taxes.

 

	
Prepayment:

	
Voluntary: The Facility may be prepaid by the Borrower in whole or in multiples of USD 250,000 by giving the Lender at least ten (10) business days prior written notice and against the payment of a Prepayment Fee.

 

Mandatory: As usual and customary, including, but not limited to: breach of FMV clause, sale of Vessel, total loss, etc.

 

The Borrower would always have to reimburse break funding costs (if any). Facility Amounts prepaid shall not be available for re-drawing and be credited in inverse order of maturity during the first 3 years and from year 4 onwards on a pro rata basis.

 

	
Derivatives:

	
The Borrower shall have the option to enter into an interest rate swap and/or other derivative transaction(s) relating to the Facility covering up to 100% on the basis of a derivative master agreement. Such transactions to be provided by the Swap Bank shall be secured on a pari passu basis with the Facility.

 

	
Availability Period:

	
The Facility will be available for drawdown from the date when all Conditions Precedent are satisfied or waived until the earlier of (I) 270 days after the Contract Delivery Date (means 30 April 2016) and (ii) the date on which the total Facility Amount is fully disbursed, cancelled or terminated, or such later date as the Lender may agree with the Borrower.

 

	 	
THE PRICING

 

	
Structuring Fee:

	
USD 231,850 flat; due at signing of the Facility agreement and payable at drawdown but latest at the end of the Availability Period — independently whether the loan is drawn or not.

 

	
Finder's Fee:

	
One time fee of USD 75,000 flat; Finder Fee payable to XRTC on drawdown of the facility

 

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NORD/LB  

	
Private & Confidential

 

	
Drop Dead Fee:

	
By signing this Binding Term Sheet the Borrower / Sponsor agree to pay to the Lender a compensation fee of USD 20,000.00 and to XRTC USD 10,000.00 if the Borrower / Sponsor decide to drop the commitment for any reasons.

 

Both fee amounts are due and payable upon commitment termination date.

 

	
Net Margin:

	
Post-Delivery Loan: 2.00% p.a.

 

	
Commitment Fee:

	
1.00% p.a. on the available but undrawn Initial Facility Amount; payable quarterly, in arrears, starting from the earlier of the date of signing of (i) a Binding Term Sheet only subject to satisfactory documentation and (ii) the Facility agreement.

 

	
Prepayment Fee:

	
0.75% flat on the Facility Amount voluntarily cancelled or not drawn by the Borrower until expiry of Availability Period or the facility amount voluntarily pre-paid within 2 years after drawdown (not applicable for mandatory prepayments) and in addition to break funding costs (if any).

 

The above mentioned applies also in case of a vessel's sale.

 

In case of a total loss, no prepayment fee will be invoiced.

 

	 	
THE INTEREST

 

	
Interest Period:

	
3 months only

 

Calculation method for interest and Commitment Fee: act/360.

 

	
Liquidity Costs:

	
All costs incurred by the Lender in connection with the provision of the Facility, including but not limited to the cost for securing the liquidity risk taking into account the envisaged cash flows of the Facility.

 

Indicative 144 bps, per 31st March 2016 (if possible, to be determined on the day of agreement on the Binding Term Sheet).

 

Lender's Liquidity Costs to be fixed after written confirmation from the Borrower. The Borrower can ask the Lender from time to time for indications until the Lender and the Borrower find an agreement.

 

The indicative. Lender's Liquidity Cost assume

 

·Drawdown between 17th May 2016 and 31st May 2016

·First repayment instalment is payable three months after Drawdown

·The mentioned repayment , profile (see definition "Repayment")

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Private & Confidential

 

	 	
Notes:

 

If Borrower decides not to draw the commitment during the Availability Period, Lender is entitled to invoice breakage costs for cancellation of Lender's funding

 

In case of any unforeseeable circumstances after fixing of Lender's Liquidity Costs which have an impact on the drawdown (especially if Drawdown takes places later than 31st May 2016) and the debt service in terms of amounts and timing, Lender has the right to adjust the existing funding and replace the existing Lender's Liquidity Costs mentioned in the loan agreement in sole discretion.

 

	
Interest Rate:

	
Floating rate: 3 months LIBOR plus Liquidity Costs plus Net Margin (plus additional liquidity costs, if any, to be determined by Lender according to its reasonable discretion), payable in arrears on the last day of each Interest Period.

 

	
Market Disruption:

	
Documentation shall include a standard Loan Market Association ("LMA") market disruption clause.

 

	
Default Interest:

	
2% p.a. above the applicable Interest Rate in case of payment default.

 

	 	
THE SECURITIES

 

	
Securities:

	
Usual and customary for a transaction of this type, including, but not limited to:

 

General: 

 

Irrevocable and unconditional payment guarantee of the Guarantor (payable upon first written demand as primary obligation and not merely as a surety), guaranteeing all of the obligations of the Borrower,

Post-Delivery Loan:

 

-First priority mortgage on the Vessel covering 120% of the Facility Amount (ship register and flag to be acceptable to the Lender);

-First priority general assignment, of all Insurances/P&I Entries of the Borrower and co-assureds (if any) regarding the Vessel together with cover notes, certificates of entry, letter of undertaking and respective notices (including loss payable clause acceptable to the Lender and fleet lien waiver);

-First priority general assignment of all earnings of the Vessel;

-First priority general assignment of all employment contracts between the Borrower and any charterer with a term of 12 months or longer together with proof of receipt of  respective notice and/or acknowledgement;

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NORD/LB  

	
Private & Confidential

 

	 	
-First priority general assignment of all warranties under the Shipbuilding Contract, together with proof of receipt of respective notice and/or acknowledgement;

-First priority general assignment or pledge of all hedging agreements, if any;

-Pledge of Borrower Accounts;

-First priority pledge of shares of the Borrower; if legally advised

	
Borrower Account(s)

	
Any revenues of the Vessel including all charter revenues have to be paid in full into the Borrower's earnings account (the "Earnings Account"), to be opened and maintained with the Account Bank.

 

	 	
The Borrower has to maintain a debt service reserve during the lifeterm of the loan on a reserve account with the Account Bank (the "Debt Service Reserve Account"). During the first 3 years of the initial Time Charter, the balance on the Debt Service Reserve Account shall be increased quarterly to an amount sufficient to cover the next six months principal due under the Facility from there on.

 

	
Security Coverage:

	
FMV of 125% of the facility amount outstanding to be maintained at all times. From year 3 of the Time Charter, the FMV of 143% of the facility amount to be maintained at all times.

 

The FMV shall be determined by using one written valuation prepared by a broker appointed by the Lender / Facility Agent from the list of Approved Brokers on a charter free basis. The Approved Broker's valuations shall be used for the FMV test upon drawdown of the Post-Delivery Loan (and reduce the available Facility Amount for final drawdown, if applicable) and shall be renewed in the course of the FMV testing on each anniversary thereof. Any costs related to such valuations to be borne by the Borrower.

 

Should the Borrower not agree with the valuation from the Approved Broker, it may appoint at its expense another Approved Broker in its sole and absolute discretion and the average of both valuations shall be used to determine the FMV. Should the valuation of the Borrower differ more than $500,000 from the valuation of the Lender, the Borrower has the right to get a 3rd valuation from another Approved Broker and then the FMV to be determined as the average of the 3 valuations.

 

Each Approved Broker valuation has to be addressed to the Lender/Facility Agent.

 

A breach of Security Coverage can be remedied either by additional collateral or prepayment.

 

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NORD/LB  

	
Private & Confidential

 

	
Approved Broker:

	
e.g. Fearnleys, Arrow, Clarksons, Ingenieurbüro Weseimann, SSY Valuation Services Limited, Maersk Broker, Barry Rogliano Salles, Allied Shipbroking Inc.

 

	 	
THE GENERAL TERMS

 

	
Documentation:

	
The Facility to be subject to legal documentation prepared in English language, comprising terms acceptable to the Lender, including, among others, representations and warranties, undertakings, negative pledge, financial covenants, no additional indebtedness, no maritime lien other than in the ordinary course of business, events of default, illegality, business days in Hannover and other relevant places and other provisions usual and customary for a Facility of this nature.

 

	
Information Undertakings:

	
As usual and customary for a transaction of this type, including, but not limited to:

 

-Audited consolidated financial statements for the Guarantor in English (within 180 days of the end of each financial year);

-Semi-annual unaudited accounts for the Borrower and the Guarantor in English (within 90 days of the end of each financial half-year);

-Liquidity and cash-flow forecast for the next 2 years to be provided at the beginning of each calendar year for Borrower;

-Details of any material litigation, arbitration or administrative proceedings (if any);

-Such other information regarding the financial condition, business and operations of the Borrower and the Guarantor as the Lender may reasonably request (e.g. current employment status of the Vessel);

 

All information necessary to carry out the obligatory "know your customer" checks.

 

	
Vessel related Undertakings:

	
As usual and customary for a transaction of this type,  including, but not limited to:

 

-Compliance with ISM Code and applicable environmental regulations;

-The Vessel to be free of all encumbrances, except for the security created with respect to the Facility;

-The Vessel to be classed with a classification society acceptable to the Lender at all times;

-The Vessel shall be registered under Liberian flag or any other flag acceptable to the Lender at all times;

-The Security Agent or its representatives have the right to physically inspect the Vessel at the Borrower's expense at all times.

 

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NORD/LB  

	
Private & Confidential

 

	
Insurance:

	
The Borrower shall maintain throughout the life of the Loan insurances with insurers acceptable to the Lender as usual and customary for a transaction of this type, including, but not limited to:

Hull & Machinery, Increased Value, War Risks including War P&I, P&I (member of International Group).

 

MII, MAP, MRI being arranged by the Lender on account of Borrower.

 

Any insurance related costs including the costs of an insurance report, e.g. by BankServe to be borne by the Borrower. If applicable, the Vessel's insurances shall cover its full commercial value, but in any event 120% of the outstanding facility amount.

 

	
Financial Covenants:

	
The following Financial Ratios are agreed but not limited to these:

 

·Ratio of Total debt to Total assets at all times not to be greater than 0.8 to 1.0 at Borrower level

·Ratio of EBITDA (excluding extraordinary and non cash items and before lease payments) to Interest expenses at all times to be at least 2.5 times to 1.0 in relation to the preceding four quarters at Borrower level

·Leverage ratio <= 75% at Guarantor level (Total net Debt (loans .1. cash) to Aggregate Fair Market Value of Vessels owned by the Guarantor)

·Minimum Cash at Guarantor level:

USD 750,000 per vessel directly owned (or through wholly-owned subsidiaries) and

USD 500,000 per vessel which are in a bareboat structure

 

Ratios to be tested based on the financial statements on a semi-annually basis and a respective Compliance Certificate has to be provided to the Lender.

 

	
Representation & Warranties:

	
As usual and customary for a transaction of this type.

 

	
Events of Default:

	
As usual and customary for a transaction of this type, including, but not limited to:

 

-Non-payment under any finance document;

-The Shipbuilding Contract, initial employment contract of the Vessel, Facility agreement or any security document are terminated or cease to remain in full force and effect;

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Private & Confidential

 

	 	
-Breach of representations, warranties or undertakings or any Financial Covenant by the Borrower or by the, Guarantor;

-Breach of Security Coverage

-Bankruptcy/insolvency events relating to the Borrower, Guarantor or Charterer;

-Illegality, unlawfulness or litigation;

-Material adverse change affecting the Borrower, Guarantor or Charterer;

-Total loss of Vessel (duty to prepay the Facility on the earlier of the date falling 90 days after the total loss date and the date of receipt of the respective insurance proceeds relating to such total loss);

-Sale of Vessel (duty to prepay the Facility on the date on which the sale is completed);

-Arrest and/or detention of Vessel;

-Change of ownership/control of the Borrower and/or Guarantor (means in case of the Guarantor a reduction of Mr Evangelos Pistiolis (including his family) shares below 20%);

-Change of business of Borrower;

-Change of class, flag or ship management of the Vessel without prior consent of the Lender;

-Cross default of the Borrower and/or Guarantor.

	
Conditions Precedent:

	
As usual and customary for a transaction of this type.

 

	
Syndication/Transfer:

	
The loan documentation shall allow NORD/LB to transfer the credit claim and/or the commercial risk of granting the credit to third parties (any company affiliated to NORD/LB, a member of the European System of Central Banks, a banking or financial services institution, a financing company, an insurer, a social security or pension fund, a capital investment company, a financial intermediary or a special purpose vehicle with or without own legal personality) and to make use of 'KEV'-refinancing. To this extent, the Borrower will release NORD/LB from the banking secrecy provisions.

 

	
Market Flex:

	
The Lender shall be entitled after consultation and mutual Agreement with the Borrower to change the pricing, terms and/or structure of the Facility if the Lender determines that such changes are advisable in order to ensure a successful syndication of the Facility

.

	
Miscellaneous Provisions:

	
The Facility agreement will contain provisions relating to, among other things, default interest, market disruption, material adverse change, breakage costs, withholding tax, tax gross up and indemnities, increased costs, set-off, administration, etc.

 

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Governing Law:

	
English law in relation to this Binding Term Sheet as well as the Facility agreement and the security documents (if applicable and not governed mandatorily by another law).

 

	
Place of Jurisdiction:

	
Courts of London, England.

 

	
Legal Counsel:

	
Watson, Farley & Williams, Piraeus (or any other agreed law firm)

 

All costs and expenses for legal services which incur in relation to this transaction shall be borne by the Borrower, irrespective of whether this transaction materialises or not.

 

	
Confidentiality:

	
This Binding Term Sheet is for the Borrower's, Sponsor's and Guarantor's exclusive use and shall be treated strictly confidential.

 

	
Disclosure of information:

	
The Lender may disclose to any person, its head office, subsidiary, parent or affiliate, any governmental institution or to any regulatory body or its advisors (in order to comply with any existing law or governmental requirement) any information which the Lender has received in relation to the Borrower, the Guarantor and/or any other information in relation to the Facility provided that the receiver has agreed to keep such information confidential. The borrower may disclose any information in relation to this loan as required by SEC and NASDAQ requirements.

 

	
Language:

	
Any documents in another language than English have to be provided with a certified translation at the Borrower's expense.

 

	
Publicity:

	
The Borrower and Guarantor consents to the publication of their name and logo, number and type of the financed Vessel, the Facility Amount and the role of the Lender for league tables, company presentations, etc.

 

Any publicity regarding the Facility to be agreed in advance between Lender and Borrower and Guarantor.

 

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For and on behalf of

Norddeutsche Landesbank Girozentrale

	
/s/Herrmann

	 	
/s/Fischer

	
Herrmann

	 	
Fischer

This Binding Term Sheet shall remain open for acceptance until Expiry.  Any extension of this period shall be at the sole discretion of the Lender.

Agreed and accepted for an on behalf of the Borrower

	
Signature:

	
/s/Dimosthenis Eleftheriadis

	 
	
Name:

	
Dimosthenis Eleftheriadis

	 
	
Title:

	
Director

	 
	
Date:

	
April 4, 2016

	 

Agreed and accepted for an on behalf of the Guarantor/Sponsor

	
Signature:

	
/s/Alexandros Tsirikos

	 
	
Name:

	
Alexandros Tsirikos

	 
	
Title:

	
Director

	 
	
Date:

	
April 4, 2016

	 

 

 

  

 

12ex4_54.htm

  

  

  

Exhibit 4.54

Letter of Intent

for Assignment of Property of the 50th Floor

of Shenzhen International Chamber of Commerce Tower

	
The Vendor (“Party A”):

 

	
Global Sources Properties  (Shenzhen) Co., Ltd.

	
Company Registration No.:

 

	
440301503236702

	
Authorized Representative:

 

	
 Sandy Ng

	
Company Address:

	
35 Floor, Shenzhen International Chamber of Commerce Tower, No.168 Fuhua 3rd Road , Futian District, Shenzhen

	  	  
	
The Purchaser (“Party B”):

 

	
Shenzhen Sihai Hengtong Investment Holding Group Co., Ltd.

	
Company Registration No.:

 

	
440301109864653

	
Authorized Representative:

 

	
Chen Shaozhen

	
Company Address:

	
Room 201, Block A, No.1 Qianwan Road 1, Qianhai Shenzhen-Hong Kong Cooperative Zone, Shenzhen

	  	  

 

Whereas, Party A intends to sell to Party B, and Party B intends to purchase the properties of entire 50th floor of Shenzhen International Chamber of Commerce Tower owned by Party A, in pursuance of PRC laws of real estate and regulations on administration of sale of commercial properties, together with relevant provisions of Shenzhen real estate policies and rules, Party A and Party B (hereinafter collectively referred to as “Parties”) hereby, via amicable negotiation and under free will, with respect to both Parties’ assignment of relevant properties of entire 50th floor of Shenzhen International Chamber of Commerce Building, agree on and jointly comply with the terms and articles (hereinafter referred to as “Agreement”) as follows:

 

	
Article 1.  

	
The Transaction Property

 

	
1.1.  

	
Shenzhen International Chamber of Commerce  Tower is located at the intersection of Yitian Road and Fuhua 3rd Road, Futian District, Shenzhen. Party A is the legal owner of eight (8) units on the 50th Floor of Shenzhen International Chamber of Commerce Tower, numbered 5001, 5002, 5003, 5005, 5006, 5008, 5009 and 5010 respectively (hereinafter referred to as “Property”).

 

	
1.2.  

	
Party B voluntarily intends to purchase the Property, the specific unit number of which shall subject to the descriptions in the annex(es) hereto (Party A shall provide the photocopies of the Certificates for Real Estate of the Property as annex of this Agreement).

 

  

  

  

	
1.3.  

	
The construction area of the Property is 2118.22 square meters. The purpose of the Property is for office use, with the land use from 8th January 2002 to 7th January 2052.

 

	
1.4.  

	
The current legal status of the Property is free from mortgage, and the Certificates for the Real Estate of the Property have been obtained. Party A holds the complete ownership of the Property, which is entirely at its control and disposal.

 

	
Article 2.  

	
Transaction Price

 

	
2.1.  

	
It is agreed by both Parties that the transaction unit price of the Property is RMB63,500 per square meter of the construction area, and the total price is RMB134,506,970 (hereinafter referred to as “Price”).

 

	
2.2.  

	
Each Party shall respectively assume the relevant taxes and fees arising from the transaction of the Property pursuant to provisions of laws and regulations.

 

	
Article 3.  

	
Transaction Deposit

 

	
3.1.  

	
It is agreed by both Parties that, after execution of the Agreement, Party B shall make payment of RMB20,000,000.00 to Party A by way of bank transfer before 7th July 2015, as the deposit for this transaction of Property.

 

The account designated by Party A:

Bank Name:         The China Merchants Bank Central Business Branch

Account Name:     Global Sources  Properties(Shenzhen) Co., Ltd.

Account No.:        817682051810001

	
3.2.  

	
Upon payment of the aforementioned deposit to the designated account, Party A shall issue to Party B a written receipt for the deposit, accurately recording the deposit amount.

 

	
3.3.  

	
Upon the completion of the title transfer formalities of the Property by Parties, such the afore-mentioned deposit shall be deemed as corresponding amount of the Price that Party B has paid to Party A.

 

	
Article 4.  

	
Payment Method and Sales Contract

 

	
4.1.  

	
It is agreed by both Parties that, the Second-Hand Real Estate Sales Contract of ShenZhen Municipality (hereinafter referred to as “Sales Contract”) will be signed on or before 1st September 2015, which shall stipulate that: Party B shall pay the rest of the amount of the Price for the Property, i.e. RMB114,506,970.00 (the full amount of the Price minus the deposit referred in the preceding Article 3) , to a bank escrow account designated by both Parties on a lump sum basis before 10 November, 2015.

 

  

  

  

	
4.2.  

	
It is agreed by both Parties that, this Agreement shall be an integral part of the Sales Contract, and both Parties shall fill in the blank spaces of the Sales Contract in accordance with the provisions of this Agreement and/or this Agreement shall be the supplementary terms of the Sales Contract. Unless both Parties mutually otherwise agreed, the terms and conditions of the Sales Contract shall not be further altered or added.

 

	
Article 5.  

	
Registration of Transfer and Delivery of the Property

 

	
5.1.  

	
The Inquiry of Transaction Property

 

Before Party B pays the deposit to Party A in accordance with this Agreement, Party A should issue the Property Inquiry List of the Property to Party B, for the purpose of illustrating the status of the property regarding the title of the Property is valid (means no encumbrance impacting this transaction, such as judicial attachments, mortgages and etc.).

 

	
5.2.  

	
The Escrow of the Property Title Certificate of the Property

 

At the date that this Agreement has been executed and Party B has fully paid the deposit in accordance with this Agreement, Party A should deliver the original of the Property Title Certificate of the Property (hereinafter referred to as “Original”) to King & Wood Mallesons (Shenzhen office) (hereinafter referred to as “KWM”) for escrow:

 

	
(1)  

	
KWM should send back the Original to Party A when the expiration of the escrow, namely, the earlier date of submitting the Original to government authorities for handling the registration of the title transfer or 30th, November, 2015.

 

	
(2)  

	
Both Parties and KWM should execute an agreement regarding the escrow of the Original.

 

	
5.3.  

	
Registration of Title Transfer

 

Within three (3) working days upon execution of Sales Contract and payment of the rest of the Price to the bank escrow account in full (the full amount of the Price minus the deposit referred in the preceding Article 3), both Parties shall prepare all the documents required for registration of transfer of property ownership, and jointly apply to the registration administration of property ownership to proceed with the procedures for the registration of ownership transfer.

 

Both Parties shall pay the taxes and fees arising from the Property transaction in time pursuant to the requirements of authorities respectively. Otherwise, the deferred Party should pay the liquidated damages as 0.05% of the amount of the Price per day to another Party.

 

	
5.4.  

	
Date of Delivery

 

Upon Party A receives the Price from Party B in full (subject to the arrival in Party A’s bank account), Party A will deliver the Property to Party B before 3rd January, 2016. Party B undertakes that, for the period before the delivery on 3rd January, 2016, it will not charge Party A any rents, occupation fees or exploitation fee of any form whatsoever.

 

  

  

  

	
5.5.  

	
Delivery Standard and Property Management Fee, etc.

 

	
(a)  

	
The Property will be delivered on an “as is” basis, however, Party A reserves the right to remove the removable or demountable facilities.

 

	
(b)  

	
From the date when Party A delivers the Property to Party B, any property management fees, water and electricity bill, air-conditioning usage fees and other costs related to the Property shall be borne by Party B.

 

	
Article 6.  

	
Liability for Breach of Contract

 

	
6.1.  

	
In the event that due to Party B’s reasons, the Sales Contract fails to be executed on or before 1st September, 2015, and/or Party B fails to pay the rest of the Price (RMB114,506,970) in time to the bank escrow account designated by both Parties in full (the full amount of the Price minus the deposit referred in the preceding Article 3) in accordance with the Sales Contract and/or Party B fails to handle the formalities regarding the registration of property title transfer within 5 working days following the date stipulated within the preceding Article 5.3, Party A is entitled to terminate this Agreement by issuing a written notice to Party B, and the deposit of RMB20,000,000.00 paid according to Article 3 herein will be forfeited. In addition, Party A is entitled to sell the Property to any other third party.

 

	
6.2.  

	
In the event that due to Party A’s reasons, the Sales Contract fails to be executed before 1st September, 2015 and/or Party A fails to handle the formalities regarding the registration of property title transfer within five (5) working days following the date stipulated within the preceding Article 5.3,  Party B is entitled to terminate this Agreement and/or the Sales Contract by issuing a written notice to Party A, and Party A shall refund the twice amount of the deposit paid by Party B on a lump sum basis as compensation within seven (7) working days upon the termination of this Agreement.

 

	
Article 7.  

	
Miscellaneous

 

	
7.1.  

	
Notice

 

All notices required hereunder shall be in writing, unless stipulated to the contrary herein.

 

Any document as notice, invoice or bill etc. sent from Party A to Party B shall be delivered by personal delivery or by courier, and addressed as set out below. A notice shall be deemed to be duly served on and received immediately after delivery in case of personal delivery, or on the served date recorded in the return receipt in case of delivery by courier. The information of both Parties for communication is set out as follows:

  

  

  

	
Party A:

	
Global Sources Properties (Shenzhen) Co., Ltd.

	
Mail Address:

	
35 Floor, Shenzhen International Chamber of Commerce  Tower, No.168 Fuhua 3rd Road, Futian District, Shenzhen

	
Postal Code:

	
518048

	
Attention:

	
Sandy Ng

	
Tel:

	
0755-8828 2868

	
Fax:

	
0755-8828 2864

	  	  
	
Party B:

	
Shenzhen Sihai Hengtong Investment Holding Group Co., Ltd.

	
Mail Address:

	
35 Floor, Block A, Great China International Finance Center (IFC), the intersection of Shennan Road and Caitian Road, Futian District, Shenzhen

	
Postal Code:

	
518040

	
Attention:

	
Chen Shaozhen

	
Tel:

	
0755-8278 6199

	
Fax:

	
0755-8271 0678

Both Parties shall be responsible for authenticity and accuracy of their respective contact number and address recorded herein. Where the contact number and/or address of either Party changes, that Party shall notify the other Party in writing on the second day following the date when the change occurs. Liabilities incurred by inauthentic or inaccurate contact number and/or address of either Party or that Party’s failure to timely notify the other Party of such change shall be held by that Party.

 

	
7.2.  

	
Dispute Resolution

 

Any dispute arising from performance of this Agreement shall be settled through amicable negotiation, failing which, either Party shall be entitled to submit such dispute to the competent People’s Court of PRC.

 

	
7.3.  

	
This Agreement shall be governed by PRC law.

 

	
7.4.  

	
This Agreement shall be executed in four sets of original copies, and take effect upon signatures and seals by both Parties. Each Party shall hold two sets of this Agreement with equal legal effectiveness.

 

[Below is intentionally left blank]

  

  

  

[Execution page of Letter of Intent for Assignment of Property of the 50th Floor of Shenzhen International Chamber of Commerce Building]

	
Party A:

	
Global Sources  Properties (Shenzhen) Co., Ltd.

	  	
(Company chop)

	
Authorized Representative:

	
Sandy Ng (Signature)

	
Execution Date:

	
6th July, 2015

	
Party B:

	
Shenzhen Sihai Hengtong Investment Holding Group Co., Ltd.

	  	
(Company chop)

	
Authorized Representative:

	
Chen Shaozhen (Signature)

	
Execution Date:

	
6th July, 2015

  

  

  

Annex 1: Copy of Title Certificate for Real Estate of the Property

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