Document:

Unassociated Document

    Memorandum
of Agreement

     

    between

     

    Kronos
Shipping I, Ltd. (“Kronos”)

     

    and

     

    Conway
Shipping Co. Ltd. (“Conway”)

     

    for a
credit facility

     

    Date:
April 25th, 2009

     

    This
Memorandum of Agreement (“MOA”) hereby amends
and restates in its entirety that certain Memorandum of Agreement dated as of
November 13, 2007 (as amended by Addendum No. 1 dated July 6, 2007, the
“Original MOA” and certain other amendments) by and between III to I IMS
Holdings, LLC and Schulte Group.  Kronos or its nominee placed an
order through the good offices of Conway for one 25,000 dwt IMO II
Chemical/Product tanker from Nantong Mingde Heavy Industry Stock Co., Ltd.
(“NMS”), the
shipbuilding contract (“SBC”) which was
signed on or about December 12, 2007. The price is approximately $41.5 million
per vessel to be paid in 5 equal installments as set forth in the
SBC.

     

    Conway
(or one of its affiliates) has formed a Cyprus single purpose owning company,
Anthos Shipping Co. Limited (“Buyer”), for this
transaction to act as the purchaser of the vessels under the SBC. Immediately
upon the repayment of the amounts owed by Kronos to Conway pursuant to this MOA
and the assumption of the bank guarantee referenced herein by Kronos (or upon
Kronos providing a replacement bank guarantee as provided herein), Conway shall
transfer all ownership of Buyer to Kronos such that Kronos shall be the sole
owner of Buyer.

     

    The SBC
was signed on December 12, 2007 and became effective on June 3,
2008.

     

    Buyer has
paid the first 20 percent installment under the SBC (USD 8.3 million) plus
provided a bank guarantee for payment of the second and the third installment
under the SBC, of approximately USD 8.3 million (“Guaranteed
Amount”).

     

    In
connection with the purchase of the vessel, Conway provided a loan to the Buyer
for the first installment under the SBC and facilitated an interim bank
guarantee for the second installment under the SBC (jointly called the “Credit Facility”).
This Credit Facility became effective as of the date of signing the SBC as set
forth above.

     

    As of the
date hereof, the outstanding principal amount under the Credit Facility is USD
5.3 million

     

    Under the
Original MOA, III to I Maritime Partners Cayman I, L.P. agreed to guarantee
certain payments under the Credit Facility pursuant to a Letter of Guarantee
dated as of November 15, 2007.  The conditions to termination of the
Letter of Guarantee have been satisfied and the parties hereto agree that the
Letter of Guarantee has terminated and is of no further force or
effect.

     

    
      
         

      

      
        Page 1 of
4

        
          

        

      

      
         

      

    

    The first
payment under the SBC was made in June 2008 with USD 3.0 million of Kronos’
funds and USD 5.3 million of Conway funds under the Credit
Facility.

     

    Funds
advanced under the Credit Facility (USD 5.3 million) bear interest at the rate
of 3 month US-Libor plus 450 basis points; provided that prior to December
1st
2008 such funds accrued interest at the rate of 3 month US-Libor plus 300 basis
points. The term of the Credit Facility shall be until July 30,
2010.

     

    Kronos
shall pay to Conway a lump sum amount of USD 200,000 as a fee for providing the
bank guarantee for the payment of the second installment under the SBC minus any
amounts which have already been paid with respect to such fee.

     

    Kronos
shall be deemed to be in default of its obligation under this agreement if any
of the following events occur:

     

    
      	
               
      

            	
              A)

            	
              Kronos
      fails to repay the outstanding principal amount of USD 5.3 million under
      the Credit Facility to Conway on or before July 30,
  2010;

            

    

     

    
      	
               
      

            	
              B)

            	
              Kronos
      fails to provide an acceptable bank guarantee or take over the bank
      guarantee of Conway in order to discharge Conway from its obligations
      regarding the Guaranteed Amount by July 30,
  2010;

            

    

     

    
      	
               
      

            	
              C)

            	
              Kronos
      fails to pay the interest on the outstanding principal amount of the
      Credit Facility on the last day of each calendar quarter, in arrears, with
      a cure period of 5 days for
non-payment.

            

    

     

    If Kronos
is in default of payments or in performance of its obligations hereinabove
liquidated damages of USD 3.0 million shall immediately fall due.

     

    It is
hereby understood by all parties that this amount is by way of liquidated
damages and not by way of penalty. Notwithstanding any provision in this MOA to
the contrary, the USD 3.0 million previously paid by Kronos shall be utilized to
settle any liquidated damages due hereunder. If Kronos is required to pay any
such liquidated damages hereunder, the parties hereto agree that no additional
liquidated damages, penalties or payments (including but not limited to payments
of any outstanding principal amounts) related to the Credit Facility shall be
due hereunder and the provisions of this MOA shall be of no further force or
effect after payment of such liquidated damages. Notwithstanding this, any
unpaid interest on the outstanding principal amount will remain due and
payable.

     

    Kronos
shall pay all reasonable out of pocket costs of Conway for the setup of Buyer
(which shall be assigned by Conway to Kronos as set forth herein) and for all
reasonable associated costs of establishing the Credit Facility. Such amounts
will be paid by Kronos upon receipt of a Conway invoice regarding the same. Such
amounts shall remain due and payable in case of a default by
Kronos.

     

    
      
         

      

      
        Page 2 of
4

        
          

        

      

      
         

      

    

    Kronos
source of funds for repayment:

     

    
      	
               
      

            	
              1.

            	
              Kronos
      has arranged financing through a credit facility (the “Bank Facility”)
      with Deutsche Schiffsbank Aktiengesellschaft (“DSB”) for a USD
      30 million first mortgage loan for the vessel, encompassing the necessary
      yard guarantees and progress
payments.

            

    

     

    
      	
               
      

            	
              2.

            	
              Kronos
      is currently in the initial stages of providing the equity component from
      its existing client base or through its
  affiliates.

            

    

     

    In
addition, it is understood and agreed between the parties hereto that the Bank
Facility shall be without liability to Conway, except as agreed by Conway. Upon
a default by Kronos under this MOA, Kronos agrees that Conway may assume the
obligations under the Bank Facility provided that DSB agrees to such
assumption.

     

    Provided
that Kronos is not in default under this MOA, Conway agrees that it will not
sell, transfer or assign any ownership interest in Buyer or any assets of Buyer
to any other person or entity.

     

    Kronos
hereby authorizes Conway to negotiate a delay of up to 6 months in the
construction and delivery schedule of the vessel to be built under the SBC and
undertakes to accept the new construction and delivery schedule and any
resultant changes to the SBC. All reasonable costs of Conway for the negotiation
of a delay will be paid by Kronos upon receipt of an invoice regarding the same
(incl. the extension of performance guarantee if demanded by the
yard).

     

    Kronos
warrants to pay USD 110.000 in outstanding guarantee payment fees plus
outstanding interest of USD 118.664,88 for the period 1st
December 2008 to 31st March 2009. If the amounts are not paid within 3 business
days of the date of this Agreement then this Agreement will be null and void and
the relations between the parties will be governed by previous agreements as
amended.

     

    This MOA
shall be construed in accordance with and governed by the laws of England. Any
dispute arising under this MOA shall be settled by arbitration in London,
England in accordance with English law. The arbitration panel shall be composed
of three arbitrators, one to be chosen by us and the other by you. The two
arbitrators thus appointed shall select a third arbitrator. All arbitration
proceedings shall be conducted in English and the award shall be binding and
final on the parties.In WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed on the date and year first above
written.

     

    
      
         

      

      
        Page 3 of
4

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  KRONOS
      SHIPPING I, LTD.

                
	 
      	 
      
	
                  /S/

                
	
                  Name:

                	
                  Jason
      Morton

                
	
                  Title:

                	 
      
	 
      	 
      
	
                  Conway
      Shipping Co. Ltd.

                
	 
      	 
      
	
                  /S/

                
	
                  Name:

                	
                  Jens
      Alers

                
	
                  Title:

                	
                  Director

                

        

      

    

     

    
      
         

      

      
        Page 4 of
4Unassociated Document

     

    Contract

     

    between

    Reederei
Hartmann GmbH & Co. KG, Leer,

    (hereinafter
referred to as “Reederei Hartmann”)

     

    and

    ATL
Offshore GmbH & Co. MS “NORDERNEY” KG, Leer

    (hereinafter
referred to as “NORDERNEY”)

     

    -
together referred to as “The Parties” -

     

    Preamble

     

    NORDERNEY
has entered into a building contract regarding the construction and delivery of
a AHTS vessel under construction as hull no. 6161 with FINCANTIERI CANTIERI
NAVALI
S.P.A., Genoa, Italy (hereinafter referred to as “The Builder”).  The
launching of the vessel took place at December 2, 2008, witnessed and certified
by ABS Italy S.r.l.  Thereafter The Builder provided NORDERNEY in
accordance with article 10.2.d of the building contract
with an invoice for the 4th
installment totaling EUR 3,677,900.00.  Reederei Hartmann, being
shareholder of NORDERNEY with an registered capital of EUR 3,000,000.00
representing 25% of the total registered capital, is willing to grant NORDERNEY
a loan in order to enable NORDERNEY to pay the 4th
installment to The Builder.

     

    Now
therefore and in consideration of the foregoing recitations, the parties agree
the following:

    

      
        	
                1.

              	
                Purpose
      of the loan:

              

      

       

      Reederei
Hartmann grants NORDERNEY a short-term loan about EUR
3,677,900.00.  The purpose of the loan is to enable NORDERNEY to make
the 4th installment to The Builder.

       

      
        	
                2.

              	
                Availability
      and drawdown:

              

      

       

      The loan
shall be made available upon receipt of copies of the invoice for the 4th
installment.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                3.

              	
                Repayment:

              

      

       

      The loan
shall be paid back at delivery of the vessel.  Early repayments are
allowed after written notice two weeks prior to the early
repayment.

       

      
        	
                4.

              	
                Interests:

              

      

       

      The
Parties agree upon an interest rate of 5% p.a. to Reederei
Hartmann.  Interests shall be calculated on the basis of the actual
number of days elapsed and a three hundred sixty (360) days
year.  Interests are due at the repayment day.

       

      
        	
                5.

              	
                Security:

              

      

       

      The
outstanding indebtedness shall be secured upon 1st written
demand by Reederei Hartmann with sufficient securities, e.g. by the pledge of
the refund guarantee related to the 4th
installment.

       

      
        	
                6.

              	
                Reimbursement
      of costs:

              

      

       

      All
reasonable costs that may occur or have occurred in relation to and/or in
execution of this Contract will be borne by NORDERNEY.

       

      
        	
                7.

              	
                Miscellaneous:

              

      

       

      All
changes of this Contract have to be made in writing in such a form that written
form on the same document is a condition of validity; this applies also to an
agreement chang-ing the written form requirement.  Should any of the
clauses of this Contract be or become invalid, the validity of the rest of the
Contract shall not be affected.  The Reederei Hartmann and NORDERNEY
agree to substitute the invalid clause by a valid provision which covers the
contents of the invalid provision in the best legal and economic
way.

       

      
        
          
            	
                    Leer,
      January 8th
      2009

                  	 	 
      
	 
      	 	 
      
	
                    /S/

                  	 	
                    /S/

                  
	
                    Dr.
      Niels Hartmann

                  	 	
                    Niels
      Roggemann

                  
	
                    for
      and on behalf of

                  	 	
                    for
      and on behalf of

                  
	
                    Reederei
      Hartmann GmbH & Co. KG

                  	 	
                    ATL
      Offshore GmbH & Co.

                  
	 
      	 	
                    MS
      “NORDERNEY” KG

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