Document:

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                                                                    EXHIBIT 10.5

                                                               Execution Version

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                          REGISTRATION RIGHTS AGREEMENT

                            dated as of April 8, 2005

                                     between

                            QUINTANA MARITIME LIMITED

                                       and

                         QUINTANA MARITIME INVESTORS LLC

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                          REGISTRATION RIGHTS AGREEMENT

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                <C>
ARTICLE I.   DEFINITIONS........................................................    1

   1.1.  Defined Terms..........................................................    1
   1.2.  General Interpretive Principles........................................    4

ARTICLE II.  REGISTRATION RIGHTS................................................    4

   2.1.  Demand Registration....................................................    4
   2.2.  Shelf Registration.....................................................    8
   2.3.  Piggyback Registration.................................................    9
   2.4.  Lock-Up Periods........................................................   10
   2.5.  Registration Procedures................................................   11
   2.6.  Underwritten Offerings.................................................   16
   2.7.  No Inconsistent Agreements; Additional Rights..........................   17
   2.8.  Registration Expenses..................................................   18
   2.9.  Indemnification........................................................   18
   2.10. Rules 144 and 144A and Regulation S....................................   21

ARTICLE III. MISCELLANEOUS......................................................   21

   3.1   Term...................................................................   21
   3.2.  Injunctive Relief......................................................   21
   3.3.  Attorneys' Fees........................................................   22
   3.4.  Notices................................................................   22
   3.5.  Successors, Assigns and Transferees....................................   23
   3.6.  Governing Law; Service of Process; Consent to Jurisdiction.............   23
   3.7.  Severability...........................................................   24
   3.8.  Amendment; Waiver......................................................   24
   3.9.  Counterparts...........................................................   24
</TABLE>

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                          REGISTRATION RIGHTS AGREEMENT

      REGISTRATION RIGHTS AGREEMENT (the "Agreement"), dated as of April 8,
2005, by and between Quintana Maritime Limited, a Marshall Islands Corporation
(the "Company") and Quintana Maritime Investors LLC, a Marshall Islands limited
liability company ("QMI").

                                    RECITALS

      WHEREAS, as of the date hereof, QMI owns all the Registrable Securities
(as defined below) of the Company; and

      WHEREAS, the parties desire to set forth certain registration rights
applicable to the Registrable Securities.

      NOW, THEREFORE, in consideration of the foregoing and the mutual premises,
covenants and agreements of the parties hereto, and for other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      1.1 Defined Terms. As used in this Agreement, the following terms shall
have the following meanings:

            "Affiliate" has the meaning specified in Rule 12b-2 under the
Exchange Act. The term "Affiliated" has a correlative meaning.

            "Agreement" has the meaning set forth in the preamble.

            "Board of Directors" means the board of directors of the Company.

            "Company" has the meaning set forth in the preamble and shall
include the Company's successors by merger, acquisition, reorganization,
conversion or otherwise.

            "Company Public Sale" has the meaning set forth in Section 2.3(a).

            "Demanding Investor" has the meaning set forth in Section 2.l(a).

            "Demand Notice" has the meaning set forth in Section 2.1(e).

            "Demand Period" has the meaning set forth in Section 2.l(d).

            "Demand Registration" has the meaning set forth in Section 2.l(a).

            "Demand Registration Statement" has the meaning set forth in Section
2.l(a).

            "Demand Suspension" has the meaning set forth in Section 2.1 (g).

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            "Effectiveness Date" means the date on which Holders are no longer
subject to any underwriter's lock-up or other contractual restriction on the
sale of Registrable Securities in connection with the Company's IPO.

            "Equity Securities" means any equity interest or other securities
convertible into equity interests of the Company.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and any successor thereto, and any rules and regulations promulgated
thereunder, all as the same shall be in effect from time to time.

            "Holder" means any holder of Registrable Securities who is a party
hereto or who succeeds to rights hereunder pursuant to Section 3.5.

            "Indemnified Parties" has the meaning set forth in Section 2.9(a).

            "Initial Registrable Securities" means the Registrable Securities
outstanding as of the date hereof.

            "Investor" means QMI until the dissolution of QMI, and effective
immediately upon such dissolution shall mean each of Quintana Maritime Partners
L.P and FR X Offshore, L.P., and their respective successors and permitted
assigns.

            "IPO" means an initial registered offering of equity securities or
equity interests of the Company to the public.

            "Material Adverse Change" means

            (i) any general suspension of trading in, or limitation on prices
for, securities on any national securities exchange or in the over-the-counter
market in the United States;

            (ii) the declaration of a banking moratorium or any suspension of
payments in respect of banks in the United States;

            (iii) a material outbreak or escalation of armed hostilities or
other international or national calamity involving the United States or the
declaration by the United States of a national emergency or war or a change in
national or international financial, political or economic conditions; and

            (iv) any event, change, circumstance or effect that is or is
reasonably likely to be materially adverse to the business, properties, assets,
liabilities, condition (financial or otherwise), operations, results of
operations or prospects of the Company and its subsidiaries taken as a whole.

            "NASD" means the National Association of Securities Dealers, Inc.

            "Person" means any individual, corporation, association, limited
liability company, partnership, estate, trust, unincorporated organization or a
government or any agency or political subdivision thereof.

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            "Piggyback Registration" has the meaning set forth in Section
2.3(a). "Preemption Notice" has the meaning set forth in Section 2.1 (f).

            "Prospectus" means the prospectus included in any Registration
Statement, all amendments and supplements to such prospectus and all other
material incorporated by reference in such prospectus.

            "Registrable Securities" means any Equity Securities and any
securities that may be issued or distributed or be issuable in respect of any
Equity Securities by way of conversion, dividend, stock split or other
distribution, merger, consolidation, exchange, recapitalization or
reclassification or similar transaction; provided, however, that any such
Registrable Securities shall cease to be Registrable Securities to the extent:

            (i) a Registration Statement with respect to the sale of such
Registrable Securities has been declared effective under the Securities Act and
such Registrable Securities have been disposed of in accordance with the plan of
distribution set forth in such Registration Statement;

            (ii) such Registrable Securities have been distributed pursuant to
Rule 144 (or any similar provisions then in force) under the Securities Act; or

            (iii) such Registrable Securities shall have been otherwise
transferred and new certificates for them not bearing a legend restricting
transfer under the Securities Act shall have been delivered by the Company and
such securities may be publicly resold without Registration under the Securities
Act.

            "Registration" means a registration with the SEC of the Company's
securities for offer and sale to the public under a Registration Statement. The
term "Register" shall have a correlative meaning.

            "Registration Expenses" has the meaning set forth in Section 2.8.

            "Registration Statement" means any registration statement of the
Company filed with, or to be filed with, the SEC under the rules and regulations
promulgated under the Securities Act, including the related Prospectus,
amendments and supplements to such registration statement, including pre- and
post-effective amendments, and all exhibits and all material incorporated by
reference in such registration statement.

            "Representatives" means, with respect to any Person, any of such
Person's officers, directors, employees, agents, attorneys, accountants,
actuaries, consultants, equity financing partners or financial advisors or other
Person associated with, or acting on behalf of, such Person.

            "SEC" means the Securities and Exchange Commission.

            "Securities Act" means the Securities Act of 1933, as amended, and
any successor thereto, and any rules and regulations promulgated thereunder, all
as the same shall be in effect from time to time.

            "Shelf Period" has the meaning set forth in Section 2.2(b).

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            "Shelf Registration" means a Registration effected pursuant to
Section 2.2.

            "Shelf Registration Statement" means a Registration Statement of the
Company filed with the SEC on either (i) Form S-3 (or any successor form or
other appropriate form under the Securities Act) or (ii) if the Company is not
permitted to file a Registration Statement on Form S-3, an evergreen
Registration Statement on Form S-l (or any successor form or other appropriate
form under the Securities Act), in each case for an offering to be made on a
continuous basis pursuant to Rule 415 under the Securities Act (or any similar
rule that may be adopted by the SEC) covering all of the Registrable Securities.

            "Shelf Suspension" has the meaning set forth in Section 2.2(c).

            "Underwritten Offering" means a Registration in which securities of
the Company are sold to an underwriter or underwriters on a firm commitment
basis for reoffering to the public.

      1.2 General Interpretive Principles

            (a) The meanings of defined terms are equally applicable to the
      singular and plural forms of the defined terms.

            (b) The words "hereof, "herein", "hereunder" and similar words refer
      to this Agreement as a whole and not to any particular provision of this
      Agreement; and any subsection, Section, Exhibit, Schedule and Annex
      references are to this Agreement unless otherwise specified.

            (c) The term "including" is not limiting and means "including
      without limitation."

            (d) The captions and headings of this Agreement are for convenience
      of reference only and shall not affect the interpretation of this
      Agreement.

            (e) Whenever the context requires, any pronouns used herein shall
      include the corresponding masculine, feminine or neuter forms.

                                   ARTICLE II
                               REGISTRATION RIGHTS

      2.1. Demand Registration

            (a) Demand by Holders. If at any time or from time to time after the
      Effectiveness Date, there is no currently effective Shelf Registration
      Statement on file with the SEC under which an Investor holding, in the
      aggregate, not less than 5% of the Registrable Securities then outstanding
      could sell all of its Registrable Securities, such Investor may make a
      written request to the Company for Registration of Registrable Securities
      held by such Investor (a "Demanding Investor"). Any such requested
      Registration shall hereinafter be referred to as a "Demand Registration."
      Each request for a Demand Registration shall specify the kind and
      aggregate amount of Registrable Securities to be Registered and the
      intended methods

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      of disposition thereof. Within 30 days of a request for a Demand
      Registration, the Company shall file a Registration Statement relating to
      such Demand Registration (a "Demand Registration Statement"), and shall
      use its reasonable best efforts to cause such Demand Registration
      Statement to promptly be declared effective under (i) the Securities Act
      and (ii) the "Blue Sky" laws of such jurisdictions as any Holder of
      Registrable Securities being registered under such Registration or any
      underwriter, if any, reasonably requests.

            (b) Limitation on Demand Registrations. Subject to Section 2.1(i),
      each Investor shall have the right to request up to two Demand
      Registrations, one of which may be used to demand that the Company file a
      continuously effective Shelf Registration Statement pursuant to Section
      2.2(a). Notwithstanding the foregoing, in no event shall the Company be
      required to effect more than a total of four Demand Registrations.

            (c) Demand Withdrawal. A Demanding Investor and any other Holder
      that has requested its Registrable Securities be included in a Demand
      Registration pursuant to Section 2.l(e) may withdraw its Registrable
      Securities from a Demand Registration at any time prior to the
      effectiveness of the applicable Demand Registration Statement. Upon
      receipt of a notice to such effect from the Demanding Investor, the
      Company shall cease all efforts to secure effectiveness of the applicable
      Demand Registration Statement and such Registration nonetheless shall be
      deemed a Demand Registration with respect to the Demanding Investor for
      purposes of Section 2. l(b) unless

                  (i) the withdrawing Demanding Investor shall have paid or
            reimbursed the Company for its pro rata share of all reasonable and
            documented out-of-pocket fees and expenses incurred by the Company
            in connection with the Registration of such Demanding Investor's
            withdrawn Registrable Securities; or

                  (ii) the withdrawal is made following the occurrence of a
            Material Adverse Change or because the Registration would require
            the Company to make disclosure of any event that the Board of
            Directors of the Company determines would not be in the best
            interests of the Company and its shareholders due to a pending
            transaction, investigation or other event, including any public
            disclosure of material non-public information, where such disclosure
            would, at that time, materially adversely affect the Company and its
            shareholders.

            (d) Effective Registration. The Company shall be deemed to have
      effected a Demand Registration if the Demand Registration Statement is
      declared effective by the SEC and remains effective for (a) other than
      with respect to a Shelf Registration, not less than 180 days (or such
      shorter period as will terminate when all Registrable Securities covered
      by such Demand Registration Statement have been sold or withdrawn), (b)
      the Shelf Period, in the case of a Shelf Registration, or (c) if any such
      Registration Statement relates to an Underwritten Offering, such longer
      period as, in the opinion of counsel for the underwriter or underwriters,
      a Prospectus is required by law to be delivered in connection with sales
      of Registrable Securities by

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      an underwriter or dealer (the applicable period, the "Demand Period"). No
      Demand Registration shall be deemed to have been effected if:

                  (i) during the Demand Period such Registration is interfered
            with by any stop order, injunction or other order or requirement of
            the SEC or other governmental agency or court; or

                  (ii) the conditions to closing specified in the underwriting
            agreement, if any, entered into in connection with such Registration
            are not satisfied other than by reason of a wrongful act,
            misrepresentation or breach of such applicable underwriting
            agreement by the Demanding Investor.

            (e) Demand Notice. Promptly upon receipt of any request for a Demand
      Registration pursuant to Section 2. l(a) (but in no event more than five
      Business Days thereafter), the Company shall deliver a written notice (a
      "Demand Notice") of any such Registration request to all other Holders of
      Registrable Securities, and the Company shall include in such Demand
      Registration all Registrable Securities with respect to which the Company
      has received written requests for inclusion therein within ten Business
      Days after the date that the Demand Notice has been delivered. All
      requests made pursuant to this Section 2.l(e) shall specify the aggregate
      amount of Registrable Securities to be registered and the intended method
      of distribution of such securities.

            (f) Preemption. If not more than 30 days prior to receipt of any
      request for a Demand Registration pursuant to Section 2. l(a), the Company
      shall have (i) circulated to prospective underwriters and their counsel a
      draft of a Registration Statement for a primary offering of Equity
      Securities on behalf of the Company, (ii) solicited bids for a primary
      offering of Equity Securities, or (iii) otherwise reached a written
      understanding with an underwriter with respect to a primary offering of
      Equity Securities, the Company may preempt the Demand Registration with
      such primary offering by delivering written notice of such intention (the
      "Preemption Notice") to the Demanding Investor and all other Holders of
      Registrable Securities, within five days after the Company has received
      the request. The period of preemption may be up to 45 days following the
      date such Preemption Notice is delivered. Notwithstanding anything to the
      contrary herein, the Company shall not be entitled to exercise its right
      to preempt a Demand Registration pursuant to this Section 2.l(f) more than
      once during any 12-month period.

            (g) Delay in Filing; Suspension of Registration. If the filing,
      initial effectiveness or continued use of a Demand Registration Statement
      at any time would require the Company to make disclosure of any event that
      the Board of Directors of the Company determines would not be in the best
      interests of the Company and its shareholders due to a pending
      transaction, investigation or other event, including any public disclosure
      of material non-public information, where such disclosure would, at that
      time, materially adversely affect the Company and its shareholders, the
      Company may, upon giving prompt written notice of such action to the
      Holders, delay the filing or initial effectiveness of, or suspend use of,
      the Demand Registration Statement (a "Demand Suspension"): provided,
      however, that the Company shall not be permitted to exercise a Demand
      Suspension (i) more than once during any 6-month

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      period, or (ii) for a period exceeding 60 days on any one occasion. In the
      case of a Demand Suspension, the Holders agree to suspend use of the
      applicable Prospectus in connection with any sale or purchase, or offer to
      sell or purchase, Registrable Securities, upon receipt of the notice
      referred to above. The Company shall immediately notify the Holders upon
      the termination of any Demand Suspension, amend or supplement the
      Prospectus, if necessary, so it does not contain any material untrue
      statement or omission and furnish to the Holders such numbers of copies of
      the Prospectus as so amended or supplemented as any such Holders may
      reasonably request. The Company agrees, if necessary, to supplement or
      make amendments to the Demand Registration Statement, if required by the
      registration form used by the Company for the Demand Registration or by
      the instructions applicable to such registration form or by the Securities
      Act or the rules or regulations promulgated thereunder or as may
      reasonably be requested by the Demanding Investor.

            (h) Underwritten Offering. If a Demanding Investor so elects, an
      offering of Registrable Securities pursuant to a Demand Registration shall
      be in the form of an Underwritten Offering. Such Demanding Investor shall
      have the right to select the managing underwriter or underwriters to
      administer the offering; provided such managing underwriter or
      underwriters shall be reasonably acceptable to the Company.

            (i) Priority of Securities Registered Pursuant to Demand
      Registrations. If the managing underwriter or underwriters of a proposed
      Underwritten Offering of the Registrable Securities included in a Demand
      Registration, advise the Board of Directors in writing that, in its or
      their opinion, the number of securities requested to be included in such
      Demand Registration exceeds the number that can be sold in such offering
      without being likely to have a significant adverse effect on the price,
      timing or distribution of the securities offered or the market for the
      securities offered, the securities to be included in such Demand
      Registration shall be:

                  (i) first, up to 100% of the Registrable Securities that the
            Demanding Investor proposes to include in the Demand Registration;

                  (ii) second, and only if all the securities referred to in
            clause (i) have been included, the number of Registrable Securities
            that, in the opinion of such managing underwriter or underwriters
            can be sold without having such adverse effect, with such number to
            be allocated pro rata among the Holders that have requested to
            participate in such Demand Registration based on the relative number
            of Registrable Securities then held by each such Holder (provided
            that any securities thereby allocated to a Holder that exceed such
            Holder's request shall be reallocated among the remaining requesting
            Holders in like manner); and

                  (iii) third, and only if all the securities referred to in
            clause (ii) have been included, the number of securities that the
            Company proposes to include in such Registration that, in the
            opinion of the managing underwriter or underwriters can be sold
            without having such adverse effect.

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      2.2 Shelf Registration

            (a) Filing. After the Effectiveness Date, as promptly as practicable
      following a demand by an Investor that holds, in the aggregate, not less
      than 5% of the Registrable Securities then outstanding, the Company shall
      file with the SEC a Shelf Registration Statement relating to the offer and
      sale of all Registrable Securities by the Holders from time to time in
      accordance with the methods of distribution elected by such Holders and
      set forth in the Shelf Registration Statement and, thereafter, shall use
      its reasonable best efforts to cause such Shelf Registration Statement to
      be declared effective under the Securities Act. If, on the date of any
      such demand, the Company does not qualify to file a Shelf Registration
      Statement under the Securities Act, the provisions of this Section 2.2
      shall not apply, and the provisions of Section 2.1 shall apply instead.

            (b) Continued Effectiveness. The Company shall use its reasonable
      best efforts to keep such Shelf Registration Statement continuously
      effective under the Securities Act in order to permit the Prospectus
      forming a part thereof to be usable by Holders until the earlier of (i)
      the date as of which all Registrable Securities have been sold pursuant to
      the Shelf Registration Statement or another registration statement filed
      under the Securities Act (but in no event prior to the applicable period
      referred to in Section 4(3) of the Securities Act and Rule 174 thereunder)
      and (ii) the date as of which each of the Holders is permitted to sell its
      Registrable Securities without Registration pursuant to Rule 144 under the
      Securities Act without volume limitation or other restrictions on transfer
      thereunder (such period of effectiveness, the "Shelf Period"). Subject to
      Section 2.2(c), the Company shall not be deemed to have used its
      reasonable best efforts to keep the Shelf Registration Statement effective
      during the Shelf Period if the Company voluntarily takes any action or
      omits to take any action that would result in Holders of the Registrable
      Securities covered thereby not being able to offer and sell any
      Registrable Securities pursuant to such Shelf Registration Statement
      during the Shelf Period, unless such action or omission is required by
      applicable law.

            (c) Suspension of Registration. If the continued use of such Shelf
      Registration Statement at any time would require the Company to make
      disclosure of any event that the Board of Directors of the Company
      determines would not be in the best interests of the Company and its
      shareholders due to a pending transaction, investigation or other event,
      including any public disclosure of material non-public information, where
      such disclosure would, at that time, materially adversely affect the
      Company and its shareholders, the Company may, upon giving at least ten
      days' prior written notice of such action to the Holders, suspend all
      Holders' ability to use the Shelf Registration Statement (a "Shelf
      Suspension"); provided that the Company shall not be permitted to exercise
      a Shelf Suspension (i) more than one time during any six-month period, or
      (ii) for a period exceeding 60 days on any one occasion. In the case of a
      Shelf Suspension, the Holders agree to suspend use of the applicable
      Prospectus in connection with any sale or purchase of, or offer to sell or
      purchase, Registrable Securities, upon receipt of the notice referred to
      above. The Company shall immediately notify the Holders upon the
      termination of any Shelf Suspension, amend or supplement the Prospectus,
      if necessary, so it does not contain any material untrue statement or
      omission and furnish to the Holders such numbers of copies of the
      Prospectus as so amended or supplemented as the Holders may reasonably
      request. The Company agrees, if necessary, to supplement or make
      amendments to the Shelf Registration Statement, if required by the
      registration form used by the Company for the Shelf Registration or by the
      instructions applicable to such registration form or by the

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      Securities Act or the rules or regulations promulgated thereunder or as
      may reasonably be requested by an Investor.

            (d) Underwritten Offering. If an Investor holds, in the aggregate,
      not less than 5% of the Registrable Securities then outstanding and so
      elects, an offering of such Investor's Registrable Securities pursuant to
      the Shelf Registration Statement shall be in the form of an Underwritten
      Offering, and the Company shall amend or supplement the Shelf Registration
      Statement for such purpose. Such Investor shall have the right to select
      the managing underwriter or underwriters to administer such offering;
      provided that such managing underwriter or underwriters shall be
      reasonably acceptable to the Company.

      2.3 Piggyback Registration

            (a) Participation. If the Company at any time proposes to file a
      Registration Statement under the Securities Act with respect to any
      offering of its securities for its own account or for the account of any
      other Persons (other than (i) a Registration under Section 2.1 or 2.2,
      (ii) a Registration on Form S-4 or S-8 or any successor form to such Forms
      or (iii) a Registration of securities solely relating to an offering and
      sale to employees or directors of the Company pursuant to any employee
      stock plan or other employee benefit plan arrangement) (a "Company Public
      Sale"), then, as soon as practicable (but in no event less than 30 days
      prior to the proposed date of filing of such Registration Statement), the
      Company shall give written notice of such proposed filing to all Holders
      of Registrable Securities, and such notice shall offer each Holder of not
      less than 5% of Registrable Securities then outstanding the opportunity to
      Register under such Registration Statement such number of Registrable
      Securities as each such Holder may request in writing (a "Piggyback
      Registration"). Subject to Section 2.3(b), the Company shall include in
      such Registration Statement all such Registrable Securities that are
      requested to be included therein within 15 days after such notice is
      delivered; provided that if at any time after giving written notice of its
      intention to Register any securities and prior to the effective date of
      the Registration Statement filed in connection with such Registration, the
      Company shall determine for any reason not to Register or to delay
      Registration of such securities, the Company shall give written notice of
      such determination to each Holder of Registrable Securities and,
      thereupon:

                  (i) in the case of a determination not to Register, shall be
            relieved of its obligation to Register any Registrable Securities in
            connection with such Registration (but not from its obligation to
            pay the Registration Expenses in connection therewith), without
            prejudice, however, to the rights of any Holders of Registrable
            Securities entitled to request that such Registration be effected as
            a Demand Registration under Section 2.1; and

                  (ii) in the case of a determination to delay Registering, in
            the absence of a request for a Demand Registration, shall be
            permitted to delay Registering any Registrable Securities, for the
            same period as the delay in Registering such other securities. If
            the offering pursuant to such Registration Statement is to be
            underwritten, then each Holder making a request for a Piggyback
            Registration pursuant to this Section 2.3(a) must, and the Company
            shall make such arrangements with the managing underwriter or
            underwriters so that each such Holder may, participate in such
            Underwritten Offering. If the offering pursuant to such Registration
            Statement is to be on any other basis, then each Holder

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            making a request for a Piggyback Registration pursuant to this
            Section 2.3 (a) must, and the Company shall make such arrangements
            so that each such Holder may, participate in such offering on such
            basis.

      Each Holder of Registrable Securities shall be permitted to withdraw all
      or part of such Holder's Registrable Securities from a Piggyback
      Registration at any time prior to the effectiveness of such Registration
      Statement.

            (b) Priority of Piggyback Registration. If the managing underwriter
      or underwriters of any proposed Underwritten Offering of Registrable
      Securities included in a Piggyback Registration informs the Company and
      the Holders of Registrable Securities in writing that, in its or their
      opinion, the number of securities which such Holders and any other Persons
      intend to include in such offering exceeds the number that can be sold in
      such offering without being likely to have a significant adverse effect on
      the price, timing or distribution of the securities offered or the market
      for the securities offered, then the securities to be included in such
      Registration shall be:

                  (i) first, up to 100% of the securities that the Company or
            (subject to Section 2.7) any Person (other than a Holder of
            Registrable Securities) exercising a contractual right to demand
            Registration, as the case may be, proposes to sell;

                  (ii) second, and only if all the securities referred to in
            clause (i) have been included, the number of Registrable Securities
            that, in the opinion of such managing underwriter or underwriters,
            can be sold without having such adverse effect, with such number to
            be allocated pro rata among the Holders that have requested to
            participate in such Registration based on the relative number of
            Registrable Securities then held by each such Holder (provided that
            any securities thereby allocated to a Holder that exceed such
            Holder's request shall be reallocated among the remaining requesting
            Holders in like manner); and

                  (iii) third, and only if all of the Registrable Securities
            referred to in clause (ii) have been included in such Registration,
            any other securities eligible for inclusion in such Registration.

            (c) No Effect on Demand Registrations. No Registration of
      Registrable Securities effected pursuant to a request under this Section
      2.3 shall be deemed to have been effected pursuant to Sections 2.1 and 2.2
      or shall relieve the Company of its obligations under Sections 2.1 or 2.2.

      2.4 Lock-Up Periods

            (a) Lock-Up Periods for Holders. In the event of a Company Public
      Sale of the Company's equity securities in an Underwritten Offering, the
      Holders of Registrable Securities agree, if requested by the managing
      underwriter or underwriters in such Underwritten Offering, not to effect
      any public sale or distribution of any securities (except, in each case,
      as part of the applicable Registration, if permitted) that are the same as
      or similar to those being Registered in connection with such Company
      Public Sale, or any securities convertible into or exchangeable or
      exercisable for such securities, during the period beginning seven days
      before and ending 180 days, in the case of the Company's initial public
      offering, or 45 days, in the case of any other Company Public Sale in an
      Underwritten Offering (or, in each case, such lesser period as may be

                                       10
<PAGE>

      permitted by the Company or such managing underwriter or underwriters)
      after, the effective date of the Registration Statement filed in
      connection with such Registration, to the extent timely notified in
      writing by the Company or the managing underwriter or underwriters.

            (b) Lock-Up Period for the Company and Others. In the case of a
      Registration of Registrable Securities pursuant to Section 2.1 or 2.2 for
      an Underwritten Offering, the Company and each Holder of Registrable
      Securities agrees, if requested by the Demanding Investor or the managing
      underwriter or underwriters, not to effect any public sale or distribution
      of any securities that are the same as or similar to those being
      Registered, or any securities convertible into or exchangeable or
      exercisable for such securities, during the period beginning seven days
      before, and ending 45 days (or such lesser period as may be permitted by
      such Holders or such managing underwriter or underwriters) after, the
      effective date of the Registration Statement filed in connection with such
      Registration (or, in the case of an offering under a Shelf Registration
      Statement, the date of the closing under the underwriting agreement in
      connection therewith), to the extent timely notified in writing by a
      Holder of Registrable Securities covered by such Registration Statement or
      the managing underwriter or underwriters. Notwithstanding the foregoing,
      the Company may effect a public sale or distribution of securities of the
      type described above and during the periods described above if such sale
      or distribution is made pursuant to Registrations on Form S-4 or S-8 or
      any successor form to such Forms or as part of any Registration of
      securities for offering and sale to employees or directors of the Company
      pursuant to any employee stock plan or other employee benefit plan
      arrangement. The Company agrees to use its reasonable best efforts to
      obtain from each Holder of restricted securities of the Company which
      securities are the same as or similar to the Registrable Securities being
      Registered, or any restricted securities convertible into or exchangeable
      or exercisable for any of such securities, an agreement not to effect any
      public sale or distribution of such securities during any such period
      referred to in this paragraph, except as part of any such Registration, if
      permitted. Without limiting the foregoing (but subject to Section 2.7), if
      after the date hereof the Company grants any Person (other than a Holder
      of Registrable Securities) any rights to demand or participate in a
      Registration, the Company agrees that the agreement with respect thereto
      shall include such Person's agreement to comply with any lock-up period
      required by this Section as if it were the Company hereunder.

      2.5 Registration Procedures

            (a) In connection with the Company's Registration obligations under
      Sections 2.1, 2.2 and 2.3, the Company shall use its reasonable best
      efforts to effect such Registration to permit the sale of such Registrable
      Securities in accordance with the intended method or methods of
      distribution thereof as expeditiously as reasonably practicable, and in
      connection therewith the Company shall:

                  (i) prepare the required Registration Statement including all
            exhibits and financial statements required under the Securities Act
            to be filed therewith, and before filing a Registration Statement or
            Prospectus, or any amendments or supplements thereto, (x) furnish to
            the underwriters, if any, and to the Holders of the Registrable
            Securities covered by such Registration Statement, copies of all
            documents prepared to be filed, which documents shall be subject to
            the review of such underwriters and such Holders and their
            respective counsel and (y) except in the case of a Registration
            under Section 2.3, not file any Registration Statement or Prospectus
            or amendments or supplements thereto to

                                       11
<PAGE>

            which the Demanding Investor or the underwriters, if any, shall
            reasonably object;

                  (ii) as soon as possible (in the case of a Demand
            Registration, no later than 60 days after a request for a Demand
            Registration) file with the SEC a Registration Statement relating to
            the Registrable Securities including all exhibits and financial
            statements required by the SEC to be filed therewith, and use its
            reasonable best efforts to cause such Registration Statement to
            become effective under the Securities Act;

                  (iii) prepare and file with the SEC such pre- and
            post-effective amendments to such Registration Statement and
            supplements to the Prospectus as may be (x) reasonably requested by
            the Demanding Investor, (y) reasonably requested by any
            participating Holder (to the extent such request relates to
            information relating to such Holder), or (z) necessary to keep such
            Registration effective for the period of time required by this
            Agreement, and comply with provisions of the applicable securities
            laws with respect to the sale or other disposition of all securities
            covered by such Registration Statement during such period in
            accordance with the intended method or methods of disposition by the
            sellers thereof set forth in such Registration Statement;

                  (iv) notify the participating Holders of Registrable
            Securities and the managing underwriter or underwriters, if any, and
            (if requested) confirm such advice in writing and provide copies of
            the relevant documents, as soon as reasonably practicable after
            notice thereof is received by the Company (a) when the applicable
            Registration Statement or any amendment thereto has been filed or
            becomes effective, and when the applicable Prospectus or any
            amendment or supplement to such Prospectus has been filed, (b) of
            any written comments by the SEC or any request by the SEC or any
            other federal or state governmental authority for amendments or
            supplements to such Registration Statement or such Prospectus or for
            additional information, (c) of the issuance by the SEC of any stop
            order suspending the effectiveness of such Registration Statement or
            any order by the SEC or any other regulatory authority preventing or
            suspending the use of any preliminary or final Prospectus or the
            initiation or threatening of any proceedings for such purposes, (d)
            if, at any time, the representations and warranties of the Company
            in any applicable underwriting agreement cease to be true and
            correct in all material respects, and (e) of the receipt by the
            Company of any notification with respect to the suspension of the
            qualification of the Registrable Securities for offering or sale in
            any jurisdiction or the initiation or threatening of any proceeding
            for such purpose;

                  (v) subjection to the provisions of Section 2.1(g), promptly
            notify each selling Holder of Registrable Securities and the
            managing underwriter or underwriters, if any, when the Company
            becomes aware of the happening of any event as a result of which the
            applicable Registration Statement or the Prospectus included in such
            Registration Statement (as then in effect) contains any untrue
            statement of a material fact or omits to state a material fact
            necessary to make the statements therein (in the case of such
            Prospectus and any preliminary Prospectus, in light of the
            circumstances under which they were made) not misleading or, if for
            any other reason it shall be necessary during such time period to
            amend or supplement such Registration Statement or Prospectus in

                                       12
<PAGE>

            order to comply with the Securities Act and, in either case as
            promptly as reasonably practicable thereafter, prepare and file with
            the SEC, and furnish without charge to the selling Holders and the
            managing underwriter or underwriters, if any, an amendment or
            supplement to such Registration Statement or Prospectus which shall
            correct such misstatement or omission or effect such compliance;

                  (vi) use its reasonable best efforts to prevent or obtain the
            withdrawal of any stop order or other order suspending the use of
            any preliminary or final Prospectus;

                  (vii) promptly incorporate in a Prospectus supplement or
            post-effective amendment such information as the managing
            underwriter or underwriters and the Investors whose Registrable
            Securities are being sold agree should be included therein relating
            to the plan of distribution with respect to such Registrable
            Securities; and make all required filings of such Prospectus
            supplement or post-effective amendment as soon as reasonably
            practicable after being notified of the matters to be incorporated
            in such Prospectus supplement or post-effective amendment;

                  (viii) furnish to each selling Holder of Registrable
            Securities and each underwriter, if any, without charge, as many
            conformed copies as such Holder or underwriter may reasonably
            request of the applicable Registration Statement and any pre- or
            post-effective amendment thereto, including financial statements and
            schedules, all documents incorporated therein by reference and all
            exhibits (including those incorporated by reference);

                  (ix) deliver to each selling Holder of Registrable Securities
            and each underwriter, if any, without charge, as many copies of the
            applicable Prospectus (including each preliminary Prospectus) and
            any amendment or supplement thereto as such Holder or underwriter
            may reasonably request (it being understood that the Company
            consents to the use of such Prospectus or any amendment or
            supplement thereto by each of the selling Holders of Registrable
            Securities and the underwriters, if any, in connection with the
            offering and sale of the Registrable Securities covered by such
            Prospectus or any amendment or supplement thereto) and such other
            documents as such selling Holder or underwriter may reasonably
            request in order to facilitate the disposition of the Registrable
            Securities by such Holder or underwriter;

                  (x) on or prior to the date on which the applicable
            Registration Statement is declared effective, use its reasonable
            best efforts to register or qualify, and cooperate with the selling
            Holders of Registrable Securities, the managing underwriter or
            underwriters, if any, and their respective counsel, in connection
            with the registration or qualification of such Registrable
            Securities for offer and sale under the securities or "Blue Sky"
            laws of each state and other jurisdiction of the United States as
            any such selling Holder or managing underwriter or underwriters, if
            any, or their respective counsel reasonably request in writing and
            do any and all other acts or things reasonably necessary or
            advisable to keep such registration or qualification in effect for
            such period as required by Section 2.l(d) or 2.2(b), whichever is
            applicable, provided that the Company will not be required to
            qualify generally to do business in any

                                       13
<PAGE>

            jurisdiction where it is not then so qualified or to take any action
            which would subject it to taxation or general service of process in
            any such jurisdiction where it is not then so subject;

                  (xi) cooperate with the selling Holders of Registrable
            Securities and the managing underwriter or underwriters, if any, to
            facilitate the timely preparation and delivery of certificates
            representing Registrable Securities to be sold and not bearing any
            restrictive legends; and enable such Registrable Securities to be in
            such denominations and registered in such names as the managing
            underwriters may request at least two business days prior to any
            sale of Registrable Securities to the underwriters;

                  (xii) use its reasonable best efforts to cause the Registrable
            Securities covered by the applicable Registration Statement to be
            registered with or approved by such other governmental agencies or
            authorities as may be necessary to enable the seller or sellers
            thereof or the underwriter or underwriters, if any, to consummate
            the disposition of such Registrable Securities;

                  (xiii) not later than the effective date of the applicable
            Registration Statement, provide a CUSIP number for all Registrable
            Securities and provide the applicable transfer agent with printed
            certificates for the Registrable Securities which are in a form
            eligible for deposit with The Depository Trust Company;

                  (xiv) make such representations and warranties to the Holders
            of Registrable Securities being registered, and the underwriters or
            agents, if any, in form, substance and scope as are customarily made
            by issuers in secondary underwritten public offerings;

                  (xv) enter into such customary agreements (including
            underwriting and indemnification agreements) and take all such other
            actions as the Demanding Investor or the managing underwriter or
            underwriters, if any, reasonably request in order to expedite or
            facilitate the registration and disposition of such Registrable
            Securities;

                  (xvi) obtain for delivery to the Holders of Registrable
            Securities being registered and to the underwriter or underwriters,
            if any, an opinion or opinions from counsel for the Company dated
            the effective date of the Registration Statement or, in the event of
            an Underwritten Offering, the date of the closing under the
            underwriting agreement, in customary form, scope and substance,
            which opinions shall be reasonably satisfactory to such Holders or
            underwriters, as the case may be, and their respective counsel;

                  (xvii) in the case of an Underwritten Offering, obtain for
            delivery to the Company and the managing underwriter or
            underwriters, with copies to the Holders of Registrable Securities
            included in such Registration, a cold comfort letter from the
            Company's independent certified public accountants in customary form
            and covering such matters of the type customarily covered by cold
            comfort letters as the managing underwriter or underwriters
            reasonably request, dated the date of execution of the underwriting
            agreement and brought down to the closing under the underwriting
            agreement;

                                       14
<PAGE>

                  (xviii) cooperate with each seller of Registrable Securities
            and each underwriter, if any, participating in the disposition of
            such Registrable Securities and their respective counsel in
            connection with any filings required to be made with the NASD;

                  (xix) use its reasonable best efforts to comply with all
            applicable securities laws and make available to its security
            Holders, as soon as reasonably practicable, an earnings statement
            satisfying the provisions of Section 11(a) of the Securities Act and
            the rules and regulations promulgated thereunder;

                  (xx) provide and cause to be maintained a transfer agent and
            registrar for all Registrable Securities covered by the applicable
            Registration Statement from and after a date not later than the
            effective date of such Registration Statement;

                  (xxi) use its reasonable best efforts to cause all Registrable
            Securities covered by the applicable Registration Statement to be
            listed on each securities exchange on which any of the Company's
            securities are then listed or quoted and on each inter-dealer
            quotation system on which any of the Company's securities are then
            quoted;

                  (xxii) make available upon reasonable notice at reasonable
            times and for reasonable periods for inspection by a Representative
            appointed by the Demanding Investor, by any underwriter
            participating in any disposition to be effected pursuant to such
            Registration Statement and by any attorney, accountant or other
            agent retained by such Demanding Investor or any such underwriter,
            all pertinent financial and other records, pertinent corporate
            documents and properties of the Company, and cause all of the
            Company's officers, directors and employees and the independent
            public accountants who have certified its financial statements to
            make themselves available to discuss the business of the Company and
            to supply all information reasonably requested by any such Person in
            connection with such Registration Statement as shall be necessary to
            enable them to exercise their due diligence responsibility; provided
            that any such Person gaining access to information regarding the
            Company pursuant to this Section 2.5(a)(xxii) shall agree to hold in
            strict confidence and shall not make any disclosure or use any
            information regarding the Company that the Company determines in
            good faith to be confidential, and of which determination such
            Person is notified, unless (w) the release of such information is
            requested or required (by deposition, interrogatory, requests for
            information or documents by a governmental entity, subpoena or
            similar process), (x) such information is or becomes publicly known
            other than through a breach of this or any other agreement of which
            such Person has knowledge, (y) such information is or becomes
            available to such Person on a non-confidential basis from a source
            other than the Company or (z) such information is independently
            developed by such Person; and

                  (xxiii) in the case of an Underwritten Offering, cause the
            senior executive officers of the Company to participate in the
            customary "road show" presentations that may be reasonably requested
            by the managing underwriter or underwriters in any such Underwritten
            Offering and otherwise to facilitate, cooperate with, and
            participate in each proposed offering contemplated herein and
            customary selling efforts related thereto.

                                       15
<PAGE>

            (b) The Company may require each seller of Registrable Securities as
      to which any Registration is being effected to furnish to the Company such
      information regarding the distribution of such securities and such other
      information relating to such Holder and its ownership of Registrable
      Securities as the Company may from time to time reasonably request in
      writing. Each Holder of Registrable Securities agrees to furnish such
      information to the Company and to cooperate with the Company as reasonably
      necessary to enable the Company to comply with the provisions of this
      Agreement.

            (c) Each Holder of Registrable Securities agrees that, upon receipt
      of any notice from the Company of the happening of any event of the kind
      described in Section 2.5(a)(v), such Holder will forthwith discontinue
      disposition of Registrable Securities pursuant to such Registration
      Statement until such Holder's receipt of the copies of the supplemented or
      amended Prospectus contemplated by Section 2.5(a)(v), or until such Holder
      is advised in writing by the Company that the use of the Prospectus may be
      resumed, and if so directed by the Company, such Holder shall deliver to
      the Company (at the Company's expense) all copies, other than permanent
      file copies then in such Holder's possession, of the Prospectus covering
      such Registrable Securities current at the time of receipt of such notice.
      In the event the Company shall give any such notice, the period during
      which the applicable Registration Statement is required to be maintained
      effective shall be extended by the number of days during the period from
      and including the date of the giving of such notice to and including the
      date when each seller of Registrable Securities covered by such
      Registration Statement either receives the copies of the supplemented or
      amended Prospectus contemplated by Section 2.5(a)(v) or is advised in
      writing by the Company that the use of the Prospectus may be resumed.

      2.6 Underwritten Offerings

            (a) Shelf and Demand Registrations. If requested by the underwriters
      for any Underwritten Offering requested by Holders of Registrable
      Securities pursuant to a Registration under Section 2.1 or Section 2.2,
      the Company shall enter into an underwriting agreement with such
      underwriters for such offering, such agreement to be reasonably
      satisfactory in substance and form to the Company, the Demanding Investor
      and the underwriters, and to contain such representations and warranties
      by the Company and such other terms as are generally prevailing in
      agreements of that type, including indemnities no less favorable to the
      recipient thereof than those provided in Section 2.9. The Holders of the
      Registrable Securities proposed to be distributed by such underwriters
      shall cooperate with the Company in the negotiation of the underwriting
      agreement and shall give consideration to the reasonable suggestions of
      the Company regarding the form thereof. Such Holders of Registrable
      Securities to be distributed by such underwriters shall be parties to such
      underwriting agreement, which underwriting agreement shall (i) contain
      such representations and warranties by, and the other agreements on the
      part of, the Company to and for the benefit of such Holders of Registrable
      Securities as are customarily made by issuers to selling stockholders in
      secondary underwritten public offerings and (ii) provide that any or all
      of the conditions precedent to the obligations of such underwriters under
      such underwriting agreement also shall be conditions precedent to the
      obligations of such Holders of Registrable Securities. Any such Holder of
      Registrable Securities shall not be required to make any representations
      or warranties to or agreements with the Company or the underwriters other
      than representations, warranties or agreements regarding such Holder, such
      Holder's title to the Registrable Securities, such Holder's intended
      method of distribution and any other representations that are customary in
      secondary underwritten

                                       16
<PAGE>

      public offerings or that are required to be made by such Holder under
      applicable law, and the aggregate amount of the liability of such Holder
      shall not exceed such Holder's net proceeds from such Underwritten
      Offering.

            (b) Piggyback Registrations. If the Company proposes to register any
      of its securities under the Securities Act as contemplated by Section 2.3
      and such securities are to be distributed in an Underwritten Offering
      through one or more underwriters, the Company shall, if requested by any
      Holder of Registrable Securities pursuant to Section 2.3 and subject to
      the provisions of Section 2.3(b), use its reasonable best efforts to
      arrange for such underwriters to include on the same terms and conditions
      that apply to the other sellers in such Registration all the Registrable
      Securities to be offered and sold by such Holder among the securities of
      the Company to be distributed by such underwriters in such Registration.
      The Holders of Registrable Securities to be distributed by such
      underwriters shall be parties to the underwriting agreement between the
      Company and such underwriters, which underwriting agreement shall (i)
      contain such representations and warranties by, and the other agreements
      on the part of, the Company to and for the benefit of such Holders of
      Registrable Securities as are customarily made by issuers to selling
      stockholders in secondary underwritten public offerings and (ii) provide
      that any or all of the conditions precedent to the obligations of such
      underwriters under such underwriting agreement also shall be conditions
      precedent to the obligations of such Holders of Registrable Securities.
      Any such Holder of Registrable Securities shall not be required to make
      any representations or warranties to, or agreements with the Company or
      the underwriters other than representations, warranties or agreements
      regarding such Holder, such Holder's title to the Registrable Securities
      and such Holder's intended method of distribution or any other
      representations that are customary in secondary underwritten public
      offerings or that are required to be made by such Holder under applicable
      law, and the aggregate amount of the liability of such Holder shall not
      exceed such Holder's net proceeds from such Underwritten Offering.

            (c) Participation in Underwritten Registrations. Subject to the
      provisions of Section 2.6(a) and (b) above, no Person may participate in
      any Underwritten Offering hereunder unless such Person (i) agrees to sell
      such Person's securities on the basis provided in any underwriting
      arrangements approved by the Persons entitled to approve such arrangements
      and (ii) completes and executes all questionnaires, powers of attorney,
      indemnities, underwriting agreements and other documents required under
      the terms of such underwriting arrangements.

            (d) Price and Underwriting Discounts. In the case of an Underwritten
      Offering under Section 2.1 or 2.2, the price, underwriting discount and
      other financial terms for the Registrable Securities shall be determined
      by the Demanding Investor. In addition, in the case of any Underwritten
      Offering, each of the Holders may withdraw their request to participate in
      the registration pursuant to Section 2.1, 2.2 or 2.3 after being advised
      of such price, discount and other terms and shall not be required to enter
      into any agreements or documentation that would require otherwise.

      2.7 No Inconsistent Agreements: Additional Rights. The Company shall not
hereafter enter into, and is not currently a party to, any agreement with
respect to its securities that is inconsistent with the rights granted to the
Holders of Registrable Securities by this Agreement. Without the consent of all
Investors holding at least 5% of the Registrable

                                       17
<PAGE>

Securities, the Company shall not enter into any agreement granting registration
or similar rights to any Person.

      2.8 Registration Expenses. All expenses incident to the Company's
performance of or compliance with this Agreement shall be paid by the Company,
including (i) all registration and filing fees, and any other fees and expenses
associated with filings required to be made with the SEC or the NASD, (ii) all
fees and expenses in connection with compliance with any securities or "Blue
Sky" laws, (iii) all printing, duplicating, word processing, messenger,
telephone, facsimile and delivery expenses (including expenses of printing
certificates for the Registrable Securities in a form eligible for deposit with
The Depository Trust Company and of printing prospectuses), (iv) all fees and
disbursements of counsel for the Company and of all independent certified public
accountants of the Company (including the expenses of any special audit and cold
comfort letters required by or incident to such performance), (v) Securities Act
liability insurance or similar insurance if the Company so desires or the
underwriters so require in accordance with then-customary underwriting practice,
(vi) all fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange or quotation of the
Registrable Securities on any inter-dealer quotation system, (vii) all
applicable rating agency fees with respect to the Registrable Securities, (viii)
all reasonable fees and disbursements of one law firm or other counsel selected
by the Demanding Investor, (ix) all fees and expenses of accountants selected by
the Demanding Investor, (x) any reasonable fees and disbursements of
underwriters customarily paid by issuers or sellers of securities, (xi) all fees
and expenses of any special experts or other Persons retained by the Company in
connection with any Registration, and (xii) all of the Company's internal
expenses (including all salaries and expenses of its officers and employees
performing legal or accounting duties). All such expenses are referred to herein
as "Registration Expenses." The Company shall not be required to pay any fees
and disbursements to underwriters not customarily paid by the issuers of
securities in a secondary offering, including underwriting discounts and
commissions and transfer taxes, if any, attributable to the sale of Registrable
Securities.

      2.9 Indemnification

            (a) Indemnification by the Company. The Company agrees to indemnify
      and hold harmless, to the full extent permitted by law, each Holder of
      Registrable Securities, each member, limited or general partner thereof,
      each member, limited or general partner of each such member, limited or
      general partner, each of their respective Affiliates, officers, directors,
      shareholders, employees, advisors, and agents and each Person who controls
      (within the meaning of the Securities Act or the Exchange Act) such
      Persons and each of their respective Representatives from and against any
      and all losses, penalties, judgments, suits, costs, claims, damages,
      liabilities and expenses, joint or several (including reasonable costs of
      investigation and legal expenses) (each, a "Loss" and collectively
      "Losses") arising out of or based upon (i) any untrue or alleged untrue
      statement of a material fact contained in any Registration Statement under
      which such Registrable Securities were Registered under the Securities Act
      (including any final, preliminary or summary Prospectus contained therein
      or any amendment thereof or supplement thereto or any documents
      incorporated by reference therein) or any other disclosure document
      produced by or on behalf of the Company or any of its subsidiaries
      including, without limitation, reports and other documents filed under the
      Exchange Act, (ii) any omission or alleged omission to state therein a
      material fact required to be stated therein or necessary to make the
      statements therein (in the case of a Prospectus or preliminary Prospectus,
      in light of the circumstances under which they were made) not misleading
      or (iii) any actions or inactions or proceedings in respect of the
      foregoing whether or not such indemnified party is a party thereto;
      provided, that the Company

                                       18
<PAGE>

      shall not be liable to any particular indemnified party (x) to the extent
      that any such Loss arises out of or is based upon an untrue statement or
      alleged untrue statement or omission or alleged omission made in any such
      Registration Statement or other document in reliance upon and in
      conformity with written information furnished to the Company by such
      indemnified party expressly for use in the preparation thereof or (y) to
      the extent that any such Loss arises out of or is based upon an untrue
      statement or omission in a preliminary Prospectus relating to Registrable
      Securities, if a Prospectus (as then amended or supplemented) that would
      have cured the defect was furnished to the indemnified party from whom the
      Person asserting the claim giving rise to such Loss purchased Registrable
      Securities at least five (5) days prior to the written confirmation of the
      sale of the Registrable Securities to such Person and a copy of such
      Prospectus (as amended and supplemented) was not sent or given by or on
      behalf of such indemnified party to such Person at or prior to the written
      confirmation of the sale of the Registrable Securities to such Person.
      This indemnity shall be in addition to any liability the Company may
      otherwise have. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such Holder or any
      indemnified party and shall survive the transfer of such securities by
      such Holder. The Company shall also indemnify underwriters, selling
      brokers, dealer managers and similar securities industry professionals
      participating in the distribution, their officers and directors and each
      Person who controls such Persons (within the meaning of the Securities Act
      and the Exchange Act) to the same extent as provided above with respect to
      the indemnification of the indemnified parties.

            (b) Indemnification by the Selling Holder of Registrable Securities.
      Each selling Holder of Registrable Securities agrees (severally and not
      jointly) to indemnify and hold harmless, to the fullest extent permitted
      by law, the Company, its directors and officers and each Person who
      controls the Company (within the meaning of the Securities Act or the
      Exchange Act) from and against any Losses resulting from (i) any untrue
      statement of a material fact in any Registration Statement under which
      such Registrable Securities were Registered under the Securities Act
      (including any final, preliminary or summary Prospectus contained therein
      or any amendment thereof or supplement thereto or any documents
      incorporated by reference therein), or (ii) any omission to state therein
      a material fact required to be stated therein or necessary to make the
      statements therein (in the case of a Prospectus or preliminary Prospectus,
      in light of the circumstances under which they were made) not misleading,
      in each case, to the extent, but only to the extent, that such untrue
      statement or omission is contained in any information furnished in writing
      by such selling Holder to the Company specifically for inclusion in such
      Registration Statement and has not been corrected in a subsequent writing
      prior to or concurrently with the sale of the Registrable Securities to
      the Person asserting the claim. In no event shall the liability of any
      selling Holder of Registrable Securities hereunder be greater in amount
      than the dollar amount of the net proceeds received by such Holder under
      the sale of Registrable Securities giving rise to such indemnification
      obligation. The Company shall be entitled to receive indemnities from
      underwriters, selling brokers, dealer managers and similar securities
      industry professionals participating in the distribution, to the same
      extent as provided above (with appropriate modification) with respect to
      information furnished in writing by such Persons specifically for
      inclusion in any Prospectus or Registration Statement.

            (c) Conduct of Indemnification Proceedings. Any Person entitled to
      indemnification hereunder shall (i) give prompt written notice to the
      indemnifying party of any claim with respect to which it seeks
      indemnification (provided that any delay or failure to so notify the
      indemnifying party shall relieve the indemnifying party of its

                                       19
<PAGE>

      obligations hereunder only to the extent, if at all, that it is actually
      and materially prejudiced by reason of such delay or failure) and (ii)
      permit such indemnifying party to assume the defense of such claim with
      counsel reasonably satisfactory to the indemnified party; provided that
      any Person entitled to indemnification hereunder shall have the right to
      select and employ separate counsel and to participate in the defense of
      such claim, but the fees and expenses of such counsel shall be at the
      expense of such Person unless (i) the indemnifying party has agreed in
      writing to pay such fees or expenses, (ii) the indemnifying party shall
      have failed to assume the defense of such claim within a reasonable time
      after receipt of notice of such claim from the Person entitled to
      indemnification hereunder and employ counsel reasonably satisfactory to
      such Person, (iii) the indemnified party has reasonably concluded (based
      upon advice of its counsel) that there may be legal defenses available to
      it or other indemnified parties that are different from or in addition to
      those available to the indemnifying party, or (iv) in the reasonable
      judgment of any such Person (based upon advice of its counsel) a conflict
      of interest may exist between such Person and the indemnifying party with
      respect to such claims (in which case, if the Person notifies the
      indemnifying party in writing that such Person elects to employ separate
      counsel at the expense of the indemnifying party, the indemnifying party
      shall not have the right to assume the defense of such claim on behalf of
      such Person). If the indemnifying party assumes the defense, the
      indemnifying party shall not have the right to settle such action without
      the consent of the indemnified party. No indemnifying party shall consent
      to entry of any judgment or enter into any settlement which does not
      include as an unconditional term thereof the giving by the claimant or
      plaintiff to such indemnified party of an unconditional release from all
      liability in respect to such claim or litigation without the prior written
      consent of such indemnified party. If such defense is not assumed by the
      indemnifying party, the indemnifying party will not be subject to any
      liability for any settlement made without its prior written consent, but
      such consent may not be unreasonably withheld. It is understood that the
      indemnifying party or parties shall not, except as specifically set forth
      in this Section 2.9(c), in connection with any proceeding or related
      proceedings in the same jurisdiction, be liable for the reasonable fees,
      disbursements or other charges of more than one separate firm admitted to
      practice in such jurisdiction at any one time unless (x) the employment of
      more than one counsel has been authorized in writing by the indemnifying
      party or parties, (y) an indemnified party has reasonably concluded (based
      on the advice of counsel) that there may be legal defenses available to it
      that are different from or in addition to those available to the other
      indemnified parties or (z) a conflict or potential conflict exists or may
      exist (based upon advice of counsel to an indemnified party) between such
      indemnified party and the other indemnified parties, in each of which
      cases the indemnifying party shall be obligated to pay the reasonable fees
      and expenses of such additional counsel or counsels.

            (d) Contribution. If for any reason the indemnification provided for
      in paragraphs (a) and (b) of this Section 2.9 is unavailable to an
      indemnified party or insufficient in respect of any Losses referred to
      therein, then the indemnifying party shall contribute to the amount paid
      or payable by the indemnified party as a result of such Loss in such
      proportion as is appropriate to reflect the relative fault of the
      indemnifying party on the one hand and the indemnified party or parties on
      the other hand in connection with the acts, statements or omissions that
      resulted in such losses, as well as any other relevant equitable
      considerations. In connection with any Registration Statement filed with
      the SEC by the Company, the relative fault of the indemnifying party on
      the one hand and the indemnified party on the other hand shall be
      determined by reference to, among other things, whether any untrue or
      alleged untrue statement of a material fact or

                                       20
<PAGE>

      the omission or alleged omission to state a material fact relates to
      information supplied by the indemnifying party or by the indemnified party
      and the parties' relative intent, knowledge, access to information and
      opportunity to correct or prevent such statement or omission. The parties
      hereto agree that it would not be just or equitable if contribution
      pursuant to this Section 2.9(d) were determined by pro rata allocation or
      by any other method of allocation that does not take account of the
      equitable considerations referred to in this Section 2.9(d). No Person
      guilty of fraudulent misrepresentation (within the meaning of Section 1
      l(f) of the Securities Act) shall be entitled to contribution from any
      Person who was not guilty of such fraudulent misrepresentation. The amount
      paid or payable by an indemnified party as a result of the Losses referred
      to in Sections 2.9(a) and 2.9(b) shall be deemed to include, subject to
      the limitations set forth above, any legal or other expenses reasonably
      incurred by such indemnified party in connection with investigating or
      defending any such action or claim. Notwithstanding the provisions of this
      Section 2.9(d), in connection with any Registration Statement filed by the
      Company, a selling Holder of Registrable Securities shall not be required
      to contribute any amount in excess of the dollar amount of the net
      proceeds received by such Holder under the sale of Registrable Securities
      giving rise to such contribution obligation. If indemnification is
      available under this Section 2.9, the indemnifying parties shall indemnify
      each indemnified party to the full extent provided in Sections 2.9(a) and
      2.9(b) hereof without regard to the provisions of this Section 2.9(d). The
      remedies provided for in this Section 2.9 are not exclusive and shall not
      limit any rights or remedies which may otherwise be available to any
      indemnified party at law or in equity.

      2.10 Rules 144 and 144A: Regulation S. The Company covenants that it will
file the reports required to be filed by it under the Securities Act and the
Exchange Act and the rules and regulations adopted by the SEC thereunder (or, if
the Company is not required to file such reports, it will, upon the reasonable
request of any Holder of Registrable Securities, make publicly available such
necessary information for so long as necessary to permit sales pursuant to Rules
144, 144A or Regulation S under the Securities Act), and it will take such
further action as any Holder of Registrable Securities may reasonably request,
all to the extent required from time to time to enable such Holder to sell
Registrable Securities without Registration under the Securities Act within the
limitation of the exemptions provided by (i) Rules 144, 144A or Regulation S
under the Securities Act, as such Rules may be amended from time to time, or
(ii) any similar rule or regulation hereafter adopted by the SEC. Upon the
reasonable request of any Holder of Registrable Securities, the Company will
deliver to such Holder a written statement as to whether it has complied with
such requirements and, if not, the specifics thereof.

                                   ARTICLE III
                                  MISCELLANEOUS

      3.1 Term. This Agreement shall terminate upon the later of the expiration
of the Shelf Period and such time as there are no Registrable Securities, except
for the provisions of Sections 2.9 and 2.10 and all of this Section 3, which
shall survive any such termination.

      3.2 Injunctive Relief. It is hereby agreed and acknowledged that it will
be impossible to measure in money the damage that would be suffered if the
parties fail to comply with any of the obligations herein imposed on them and
that in the event of any such failure, an aggrieved Person will be irreparably
damaged and will not have an adequate remedy at law. Any such Person shall,
therefore, be entitled (in addition to any other remedy to which it may be
entitled in law or in equity) to injunctive relief, including specific
performance, to enforce such obligations, and if any action should be brought in
equity to enforce any of the provisions of this

                                       21
<PAGE>

Agreement, none of the parties hereto shall raise the defense that there is an
adequate remedy at law.

      3.3 Attorneys' Fees. In any action or proceeding brought to enforce any
provision of this Agreement or where any provision hereof is validly asserted as
a defense, the successful party shall, to the extent permitted by applicable
law, be entitled to recover reasonable attorneys' fees in addition to any other
available remedy.

      3.4 Notices. All notices, other communications or documents provided for
or permitted to be given hereunder, shall be made in writing and shall be given
(and shall be deemed to have been duly given upon receipt) by personal
hand-delivery, by facsimile transmission, by electronic mail, by mailing the
same in a sealed envelope, registered first-class mail, postage prepaid, return
receipt requested, or by air courier guaranteeing overnight delivery:

                  (a)   if to the Company:

                        Quintana Maritime Limited
                        601 Jefferson, Suite 3600
                        Houston, TX 77002
                        Attention: Wyatt Hogan
                        Telephone: (713) 751-7516
                        Fax: (713) 751-7517

                        with a copy (which shall not constitute notice) to:

                        Vinson & Elkins L.L.P.
                        First City Tower
                        1001 Fannin, Suite 2300
                        Houston, TX 77002
                        Attention: Dan A. Fleckman
                        Telephone: (713) 758-3706
                        Fax: (713) 615-5859

                  (b)   if to the Investor:

                        Quintana Maritime Investors LLC
                        601 Jefferson, Suite 3600
                        Houston, TX 77002
                        Attention: Wyatt Hogan
                        Telephone: (713) 751-7516
                        Fax: (713) 751-7517

                        and

                        FR Fund X Offshore, L.P.
                        One Lafayette Place, Suite 300
                        Greenwich, CT 06830
                        Attention: General Counsel
                        Telephone: (203)-625-2520
                        Fax: (203) 661-6729

                        with a copy (which shall not constitute notice) to:

                                       22
<PAGE>

                       Gibson, Dunn & Crutcher LLP
                       1801 California Street, Suite 4200
                       Denver, CO 80202
                       Attention: Beau Stark
                       Telephone: (303) 298-5700
                       Fax:  (303) 296-5310

      Each Holder, by written notice given to the Company in accordance with
this Section 3.4, may change the address to which notices, other communications
or documents are to be sent to such Holder.

      3.5 Successors. Assigns and Transferees.

            (a) Each party may assign all or a portion of its rights hereunder
      to any Person to which such party transfers its ownership of all or any of
      its Registrable Securities; provided that no such assignment shall be
      binding upon or obligate the Company to any such assignee unless and until
      the Company shall have received notice of such assignment as herein
      provided and a written agreement of the assignee to be bound by the
      provisions of this Agreement, and, provided further, that the rights
      described under Sections 2.1 and 2.2 shall not transfer to any Person
      unless such Person (i) is an Affiliate of the Holder transferring such
      rights or (ii) receives in such transfer at least five percent of all
      Equity Securities and such Equity Securities could not otherwise be
      transferred by such assignee without registration under the Securities
      Act. Notwithstanding the foregoing, upon the dissolution of QMI, QMI shall
      be deemed to have assigned (and such assignation shall be permitted
      hereunder) all of its rights and obligations under this Agreement to each
      party entitled to receive Equity Securities in such dissolution and
      subsequent liquidation of QMI; provided that any remaining rights to cause
      a Demand Registration shall be assigned to Quintana Maritime Partners L.P.
      and FR X Offshore, L.P. pro rata, rounded to the nearest whole number, in
      accordance with their ownership of Registrable Securities.

            (b) The terms and provisions of this Agreement shall be binding on
      and inure to the benefit of each of the parties hereto and their
      respective successors. Nothing in this Agreement, express or implied, is
      intended or shall be construed to confer upon any Person not a party
      hereto (other than each other Person entitled to indemnity or contribution
      under Section 2.9) any right, remedy or claim under or by virtue of this
      Agreement.

      3.6 Governing Law: Service of Process: Consent to Jurisdiction. (a) THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PROVISIONS, POLICIES OR
PRINCIPLES THEREOF RELATING TO CHOICE OR CONFLICT OF LAWS.

            (b) To the fullest extent permitted by applicable law, each party
      hereto (i) agrees that any claim, action or proceeding by such party
      seeking any relief whatsoever arising out of, or in connection with, this
      Agreement or the transactions contemplated hereby shall be brought only in
      the United States District Court for the Southern District of New York and
      the courts of the State of New York located in the Borough of

                                       23
<PAGE>

      Manhattan and not in any other State or Federal court in the United States
      of America or any court in any other country, (ii) agrees to submit to the
      exclusive jurisdiction of such courts located in the State of New York for
      purposes of all legal proceedings arising out of, or in connection with,
      this Agreement or the transactions contemplated hereby, and (iii)
      irrevocably waives any objection which it may now or hereafter have to the
      laying of the venue of any such proceeding brought in such a court and any
      claim that any such proceeding brought in such a court has been brought in
      an inconvenient forum.

      3.7 Severability. Whenever possible, each provision or portion of any
provision of this Agreement will be interpreted in such manner as to be
effective and valid under applicable law but if any provision or portion of any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or portion of
any provision in such jurisdiction, and this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision or portion of any provision had never been contained
therein.

      3.8 Amendment; Waiver

            (a) This Agreement may not be amended or modified and waivers and
      consents to departures from the provisions hereof may not be given, except
      by an instrument or instruments in writing making specific reference to
      this Agreement and signed by the Company and all Investors holding at
      least 5% of the Registrable Securities then outstanding. Each Holder of
      any Registrable Securities at the time or thereafter outstanding shall be
      bound by any amendment, modification, waiver or consent authorized by this
      Section 3.8(a), whether or not such Registrable Securities shall have been
      marked accordingly.

            (b) The waiver by any party hereto of a breach of any provision of
      this Agreement shall not operate or be construed as a further or
      continuing waiver of such breach or as a waiver of any other or subsequent
      breach. Except as otherwise expressly provided herein, no failure on the
      part of any party to exercise, and no delay in exercising, any right,
      power or remedy hereunder, or otherwise available in respect hereof at law
      or in equity, shall operate as a waiver thereof, nor shall any single or
      partial exercise of such right, power or remedy by such party preclude any
      other or further exercise thereof or the exercise of any other right,
      power or remedy.

      3.9 Counterparts. This Agreement may be executed in any number of separate
counterparts and by the parties hereto in separate counterparts each of which
when so executed shall be deemed to be an original and all of which together
shall constitute one and the same agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       24
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first written above.

                                      QUINTANA MARITIME LIMITED

                                      By: /s/ Paul J. Cornell
                                          ----------------------------
                                      Name: Paul J. Cornell
                                      Title: Chief Financial Officer

                                      QUINTANA MARITIME INVESTORS LLC

                                      By: /s/ Joseph R. Edwards
                                          -----------------------------
                                      Name: Joseph R. Edwards
                                      Title: Manager

                                      By: /s/ Paul J. Cornell
                                          -----------------------------
                                      Name: Paul J. Cornell
                                      Title: Manager

                [Signature Page to Registration Rights Agreement]EX-10.6

 

Exhibit 10.6

	 	 	 
	MEMORANDUM OF AGREEMENT

Dated: 24th March, 2005
	 	Norwegian Shipbrokers’
Association’s Memorandum
 of Agreement far 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.

DENAK DEPOCULUK VE NAKLIYECILIK A.S. of Istanbul, Turkey

hereinafter called the Sellers, have agreed
to sell, and BARBARA SHIPCO LLC of the Marshal
Islands hereinafter called the Buyers, have agreed to buy

Name: Mr ‘DENAK-B’

Classification Society/Class: Lloyds Register

Built: 1997            By: Halla Samho, South Korea

Flag: Turkish            Place of Registration: Istanbul, Turkey

Call Sign: TCCP8            Grt/Nrt: 38995/24436

Register Number:
875/IMO number: 9122679

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
Usd 42,000,000 (United States Dollars Forty Two Million)
Cash

2. Deposit

As security for the correct fulfilment of this Agreement the Buyers shall pay a deposit of 10%
ten per cent) of the Purchase Price within 3 (three)           banking days from the date of this
Agreement and attached Addendum No.1 being signed by both parties
by fax. This deposit shall be
placed with Turk Ekonomi Bankasi, A.S., Istanbul, Turkey (Tel:
90-212-2526780 — Miss Elvira)

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 opening the faint account or
for holding the said deposit and for
closing shall be borne equally by the Sellers and the Buyers.

3. Payment

Ninety (90) percent of the purchase money together with the value of bunkers and unused
lubricating oils in sealed/unbroached drums and designated storage tanks shall be remitted to the
Sellers nominated bank in a designated account in the name of the Buyers mortgagee bank one (1)
banking day prior to the expected date of delivery.

The said Purchase
Price ninety (90) percent of the purchase money
shall be paid together
with the ten (10) percent deposit in full free of bank
charges together with the value of bunkers
and unused lubricating oils in sealed/unbroached drums and designated storage tanks to the Sellers
nominated account with the Turk Ekonomi Bankasi, Istanbul, Turkey
-

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 in exchange for the delivery
documentation as agreed in Addendum No. 1 attached hereto,

4. Inspections

 

 

	a)* 	 	 The Buyers have inspected the vessels LR class records and accepted same
and have waived their right to physical inspection of the vessel, this sale is therefore
outright and definite inspected and accepted the Vessel’s
classification records, The Buyers have also inspected the Vessel
at/in -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.
	 
	 b)*	 	The Buyers shall have the right to inspect the Vessel’s classification records and
declare whether same are accepted or not within
	 
	 	 	The Sellers shall provide for inspection of the
Vessel at/in
	 
	 	 	The Buyers shall undertake the inspection without undue delay to the Vessel, Should the
Buyers cause undue delay they shall compensate the Sellers for the losses thereby incurred.
The Buyers shall inspect the Vessel without opening up and without cost to the Sellers.
During the inspection, the Vessel’s deck and engine log books shall be made available for
examination by the Buyers. If the Vessel is accepted after such
inspection, the sale shall
become outright and definite, subject only to the terms and conditions of this Agreement,
provided the Sellers receive written notice of acceptance from the Buyers within 72 hours
after completion of such inspection.
	 
	 	 	Should notice of acceptance of the Vessel’s classification records and of the Vessel not bo
received by the Sellers as aforesaid, the deposit together with interest earned shall bo
released immediately to the Buyers, whereafter this Agreement shall bo null and void.
	 
	*	 	4 a) and 4b) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 4a) to apply.
	 
	5.	 	Notices, time and place of delivery
	 
	a)	 	The Sellers shall keep the Buyers well informed of the Vessel’s Itinerary and shall
provide the Buyers with 20,15,10,7 , and3 days notice of the estimated time of arrival
at the intended place of drydocking/underwater inspection/delivery and 48 hours definite notice
of 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. The Sellers will use their best endeavours
to declare the actual port of delivery latest within the 15 (fifteen) day notice of expected
delivery but in any event as soon as same is known to them.
	 
	b)	 	The Vessel shall be delivered  to the Buyers with drydocking passed charter free, cargo free,
free of stowaways and taken over safely afloat at a safe and
accessible port, a safe berth
or anchorage at/in the following range;

(A) Singapore/Japan range including Taiwan, Philippines, Indonesia Malaysia, Australia
and PRC

(B) India

(C) Gibraltar/Skaw/full Mediterranean range including UK and Ireland excluding Libya,
Morocco, Tunisia, Algeria, Lebanon, Syria, Albania, Georgia, Abhazia

(D) Boston/Bahia
Blanca range including full Gulf of Mexico and US Gulf

(E) Pacific coastal/North and South America

(F) South Africa

	 	 	in the Sellers’ option.
	 
	 	 	Expected time of delivery: between 15th July, 2005 and 31st August, 2005 in the
Sellers option.
	 
	 	 	Date of cancelling (see Clauses 5 c), 6 b) (iii) and
14): 24:00 hours local time, 31st
August, 2005 in the Buyers option
	 
	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 4 working 
* running 
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 4 working   7 running 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 5 a) and 5 c) shall remain unaltered and in
full force and effect. Cancellation or failure to cancel shall be entirely without
prejudice to any claim for damages the Buyers may have under Clause 14 for the Vessel not
being ready by the original cancelling date.
	 
	d)	 	Should the Vessel become an actual, constructive or compromised total loss before delivery
the deposit together with interest earned shall be released immediately to the Buyers
whereafter this Agreement shall be null and void.
	 
	6.	 	Drydocking/Divers Inspection
	 
	a)** 	 	 The Sellers shall place tho Vessel in drydock at the
port of delivery for inspection by the
Classification Society of the Vessel’s underwater parts below
the deepest load line the
extent of the inspection being in accordance with the Classification
Society’s rules. If the rudder, propeller, bottom or other
underwater parts below the deepest load line are found
broken, damaged or defective so as to affect the Vessel’s class, such defects
shall be made good at the Sellers’ expense to the satisfaction of the
Classification Society without condition/recommendation*.
	 
	b)** 	 	 (i) The Vessel is to be delivered without drydocking. However, the Buyers shall have the
right at their expense to arrange for an underwater inspection of the vessels’ bottom and
underwater parts by a diver approved by the Lloyds
Register Classification Society in visible water with video equipment in
the presence of a Lloyds Register class surveyor and Buyers’ representative prior to the
delivery of the Vessel. The Sellers shall at their cost make the
Vessel available for such inspection at the place/time of
delivery.
The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of the Classification
Society and the attending class surveyor to be the sole judge as to what constitutes clear
water/suitable conditions. If the conditions at the port of delivery are unsuitable for
such inspection, the Sellers shall at their time and at their expense make the Vessel available at a suitable
alternative place near to the delivery port.
	 
	 	 	(ii) If the rudder, propeller, bottom or other underwater parts below the deepest load
line are found broken, damaged or defective so as to affect the Vessel’s class, then
unless repairs can be carried out afloat to the satisfaction of the Classification
Society, the Sellers shall arrange for the Vessel to be drydocked at their expense for
inspection by the Classification Society of the Vessel’s underwater parts below the
deepest load line, the extent of the inspection being in accordance with the
Classification Society’s rules. If the rudder, propeller, bottom or other underwater parts
below the deepest load line are found broken, damaged or defective so as to affect the
Vessel’s class, such defects shall be made good by the Sellers at their expense to the
satisfaction of the Classification Society without condition/recommendation*. In such
event the Sellers are to pay also for the cost of the underwater inspection and the
Classification Society’s attendance.
	 
	 	 	(iii) If the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no suitable
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 a port within the delivery range as per Clause 5 b) which
shall, for the purpose of this Clause, become the new port of delivery. In such event the
cancelling date provided for in Clause 5 b) shall be extended by the additional time
required for the drydocking and extra steaming, but limited to a maximum of 14 running
days.
	 
	c)	 	If the Vessel is drydocked pursuant to Clause 6 a) or 6 b) above
	 
	 	 	(i) the Classification Society may require survey of the tailshaft system, the extent of the
survey being to the satisfaction of the Classification surveyor. If such survey is not
required by the Classification Society, the Buyers shall have the right to require the
tailshaft to be drawn and surveyed by the Classification Society, the extent of the survey
being in accordance with the Classification Society’s rules for tailshaft survey and
consistent with the current stage of the Vessel’s survey cycle. The Buyers shall declare
whether they require the tailshaft to be drawn and surveyed not later than by the completion
of the inspection by the Classification Society. The drawing and refitting of the tailshaft
shall be arranged by the Sellers. Should any parts of the tailshaft system be condemned or
found defective so as to affect the Vessel’s class, those parts shall be renewed or made
good at the Sellers’ expense to the satisfaction of the Classification Society without

 

 

	 	 	condition/recommendation*.
	 
	 	 	(ii) the expenses relating to the survey of the tailshaft system shall be borne by the
Buyers unless the Classification Society requires such survey to be carried out, in which
case the Sellers shall pay these expenses. The Sellers shall also pay the expenses if the
Buyers require the survey and parts of the system are condemned or found defective or
broken so as to affect the Vessel’s class*.
	 
	 	 	(iii) the expenses in connection with putting the Vessel in and taking her out of drydock,
including the drydock dues and the Classification Society’s fees shall be paid by the
Sellers if the Classification Society issues any condition/recommendation* as a result of
the survey or if it requires survey of the tailshaft system. In all other cases the Buyers
shall pay the aforesaid expenses, dues and fees.
	 
	 	 	(iv) the Buyers’ representative shall have the right to be present in the drydock, but
without interfering with the work or decisions of the Classification surveyor.
	 
	 	 	(v) the Buyers shall have the right to have the underwater parts of the Vessel cleaned and
painted at their risk and expense without Interfering with the Sellers’ or the
Classification surveyor’s work, if any, and without affecting the Vessel’s timely
delivery. If, however, the Buyers’ work in drydock is still in progress when the Sellers
have completed the work which the Sellers are required to do, the additional docking time
needed to complete the Buyers’ work shall be for the Buyers’ risk and expense. In the
event that the Buyers’ work requires such additional time, the Sellers may upon completion
of the Sellers’ work tender Notice of Readiness for delivery whilst the Vessel is still in
drydock and the Buyers shall be obliged to take delivery in accordance with Clause 3,
whether the Vessel is in drydock or not and irrespective of Clause 5 b).
	 
	*	 	Notes, if any, in the surveyor’s report which are accepted by the Classification Society
without condition/recommendation are not to be taken into account.
	 
	**	 	6 a) and 6 b) are alternatives; delete whichever is not applicable. In the absence
of deletions, alternative 6 a) to apply.

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. All spare parts and spare equipment including spare tail-end shaft(s)
and/or spare propeller(s)/propeller blade(s) spare anchor, if any, belonging to the Vessel at the
time of inspection used or

unused, whether on board or not shall become the Buyers’
property, but spares on order are to be
excluded. Forwarding charges, if any, shall be for the Buyers’ account. The Sellers are not
required to replace spare parts including spare tail-end shaft(s) and spare propeller(s)/propeller
blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced
items shall be the property of the Buyers. The navigational equipment, wireless equipment radio
installation and navigational equipment including GMDSS shall be included in the sale

 without extra payment if they are the property of the Sellers. Tools, spare equipment, materials,
maintenance records and other unused stores and provisions shall be included in the sale and
be taken over by the Buyers without extra payment.

The Sellers have the right to take ashore crockery, plates, cutlery, linen and other articles
bearing the Sellers’ flag or name, provided they replace same with similar unmarked items. Library, forms,
etc., exclusively for use in the Sellers’ vessel(s), shall be excluded without compensation. Captain’s,
Officers’ and Crew’s personal belongings including the master’s slop chest are to be excluded from
the sale, as well as the following additional items (including items
on hire): MARICHEM gas bottles (The 
Sellers shall revert if any additional hired items)

The Buyers to pay extra
only for remaining unused lubricating oils in designated storage tanks and
sealed/unbroached drums at the Sellers last nett prices supported by invoices/vouchers and bunkers
on board as per latest purchase price (less discounts and barging cost) supported by the relevant
invoices, shall take over the remaining bunkers and unused
lubricating oils in storage tanks and
sealed drums and pay the current net market price-(excluding barging expenses) at the port and date
Unused lubricating oils are defined as those lubricating oils which have not passed through the
system and that are stored in designated storage tanks or in sealed drums/barrels. The quantities
of the bunkers and unused lubricating oils remaining on board on delivery shall be agreed with a
join survey between the Buyers and the Sellers representatives not later than two (2) days prior to
the delivery with an agreed allowance for the consumption up to
physical delivery.

 

 

of delivery of the Vessel.

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

8. Documentation

The place of
closing/exchange of delivery documentation: The Sellers nominated place
in Istanbul, Turkey.

In exchange for payment of
the Purchase Price the Sellers shall furnish the Buyers with the
agreed delivery

documents as per Addendum No, 1 attached hereto. , namely:

	a)	 	 Legal Bill of Sale in a form recordable in (the country in which
the Buyers are to register the Vessel), warranting that the Vessel is
free from all encumbrances, mortgages and maritime liens or any other
debts or claims whatsoever, duly notarially attested and
legalized by the consul of such country or other competent authority.
	 
	b)	 	Current Certificate of Ownership issued by the competent authorities of the flag state of
the Vessel.
	 
	c)	 	Conformation of Class issued within 72 hours prior to delivery.
	 
	d)	 	Current Certificate issued by the competent authorities stating that the Vessel is free from registered encumbrances.
	 
	e)	 	Certificate of Deletion of the Vessel from the Vessel’s registry or other official evidence of
deletion appropriate to the Vessel’s registry at the time of delivery, or, in the event that
the registry does not as a matter of practice issue such documentation immediately, a written undertaking by the Sellers to effect deletion from the Vessel’s registry forthwith and
furnish a Certificate or other official evidence of deletion to the Buyers promptly and latest within 4 (four) weeks after the Purchase Price has been paid and the Vessel has been delivered.
	 
	f)	 	Any such additional documents as may reasonably be required by the competent authorities
for the purpose of registering the Vessel, provided the Buyers notify the Sellers of any
such documents as soon as possible after the date of this Agreement.

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

At the time of delivery the
Sellers shall hand to the Buyers the classification certificate(s) as
well as all plans etc., which are on board the Vessel. Other certificates which are on board the Vessel shall
also be handed over to the Buyers unless the Sellers are required to retain same, in which case the
Buyers to have the right to take copies. Other technical documentation
including all plans/instruction books on board at time of delivery and all other plans/instruction books which
are ashore which may be 
in the Sellers’ possession and same shall be
promptly forwarded to the Buyers office at
their expense, within 3 (three) working days from the date
of vessels delivery, if they
so request.
The Sellers may keep the Vessel’s log books but the Buyers to have the right to take copies of same.

9. Encumbrances

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

10. Taxes, etc.

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

11. Condition on delivery

The Vessel with everything belonging to her shall be at the Sellers’ risk and expense
until she is delivered to the Buyers, but subject to the terms and conditions of this Agreement
she shall be delivered and taken over as she is. was at the time of inspection, fair wear and tear
excepted.

 

 

However, the Vessel shall be
delivered with her drydock passed and present class
maintained without
and free of any condition/recommendation* of class and-,
free of average damage affecting the Vessel’s class, and with her classification certificates and
national and international trading certificates,
to be clean, unextended for a minimum period of 3
(three) months as well as all other certificates
the Vessel had at the time of inspection, valid
and unextended without condition/recommendation* by Class or the
relevant authorities at the time of
delivery. “Inspection” in this Clause 11, shall moan 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.
The vessel shall be delivered to the Buyers with swept clean holds, in which event the Sellers shall have the option
to deliver the vessel with holds as left by the stevedores, but the Sellers shall pay the
Buyers US$ 400 per hold in lieu of hold cleaning. This clause is not applicable if the
vessel’s last cargo is petcoke, salt, cement or cement clinker or any cargo that for the
purpose of hold cleaning, requires special chemicals and hardware to be bought and/or

requires shore labour to effect such cleaning.

	 	 	 
	*

	 	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 5 a) 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 fax by both parties and the deposit has been lodged, the
Buyers have the right to place two representatives on board the
Vessel at their sole risk and expense upon
arrival at       on or
about         These representatives are on board for the purpose of familiarisation and in the capacity of
observers only, and they shall not interfere in any respect with the
normal operation and safety of
the Vessel/crew. The Buyers’ representatives shall
sign the Sellers’ usual P&I letter of indemnity prior to their
embarkation. Upon Buyers’ representatives boarding of the vessel the Sellers will arrange for handover of
all relevant information on board in relation to the vessels’ stores, spares, cabin departments.

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 1950 and 1979 or any statutory modification or
re-enactment thereof for the time being in force, one arbitrator being appointed by each
party. Arbitrators to be members of the London Maritime
Arbitrators Association. 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 a third arbitrator an the decision of any two of
them shall be final.

	 	 	 
	b)*

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

	 	The preceedings shall be conducted in accordance with the rules of the Society of Maritime
Arbitrators, Inc. New York.
	 
	 	 
	c)*

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

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

17. The Sellers to guarantee to their best of their knowledge that the vessel is not
blacklisted and/or boycotted by any Arab boycott league.

18. This sale is to be
kept strictly private and confidential between the Buyers, Sellers and
brokers involved and is not to be reported.

	 	 	 
	For The Sellers

	 	For The Buyers
	 
	 	 
	H.
[ILLEGIBLE] Akeal

	 	[ILLEGIBLE]

This document is a computer
generated copy of “SALEFORM 1993”, printed
by authority of the Norwegian Shipbrokers’ Association, using software which is the copyright
of Strategic Software Ltd. Any insertion or deletion to the form must be clearly visible. In
the event of any modification made to the preprinted text of this
document, the original
document shall apply. The Norwegian Shipbrokers’ Association and Strategic Software Ltd.
assume no responsibility for any loss or damage caused as a result of discrepancies between
the original approved document and this document.

 

 

My ‘DENAK-B’

AMENDMENT NO.1 TO MEMORANDUM OF AGREEMENT

     This
AMENDMENT NO. 1, dated as of June 27th, 2005 (this “Amendment”),
to the MEMORANDUM OF AGREEMENT dated March 24, 2005 (the “MOA”) between DENAK
DEPOCULUK VE NAKLIYECTLIK. A.S. (“Sellers”) and BARBARA SHIPCO LLC (“Buyers”), is
entered into and effectuated by Buyers and Sellers (collectively, the
“Parties”).

WHEREAS, the Parties hereto desire to amend the MOA to accurately reflect the
agreement by the Parties.;

NOW THEREFORE, in consideration of the mutual agreements and covenants contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, the Parties agree that the MOA is
hereby amended as follows:

	 	1.	 	Clause 17 of the MOA is hereby deleted in its entirety;
	 
	 	2.	 	Clause 18 of the MOA is hereby amended in it entirety to read as follows:
	 
	 	 	 	“18. This sale is to be kept strictly private and confidential
between the Buyers, Sellers and brokers involved and is not to be
reported; provided, however, that in the event that the Buyer or
any of its affiliates are required to make disclosure pursuant to
applicable law, regulatory authority or the rules or requirements of
a stock exchange or stock market, such party shall be entitled to
make the appropriate disclosure.”
	 
	 	3.	 	Except as expressly modified hereby, all other terms and
conditions of the MOA remain in full force and effect.
	 
	 	4.	 	This Amendment may be executed in one or more counterparts,
each of which shall be deemed an original and all of which, together, shall
constitute one Amendment.

 

 

IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

	 	 	 	 	 	 	 
	 	 	Sellers:	 	 
	 
	 	 	 	 	 	 
	 	 	DENAK DEPOCULUK VE NAKLIYECILIK A.S.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	-s- Braemar Seascope	 	 
	 

	 	 	 	

	 	 
	 	 	Braemar Seascope	 	 
	 
	 	 	 	 	 	 
	 	 	As agents only	 	 
	 
	 	 	 	 	 	 
	 	 	Buyers:	 	 
	 
	 	 	 	 	 	 
	 	 	BARBARA SHIPCO LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	[ILLEGIBLE]

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