Document:

FEIC-12.31.2012-EX10.14

Exhibit 10.14 
Description of Compensation of Non-Employee Directors 

Fees Earned or Paid in Cash 
Cash payments to non-employee directors beginning January 1, 2013 will be made as follows: 
		
	•
	Annual retainer: $40,000

		
	•
	Chairman of the Board: $50,000 annually (in addition to the annual retainer)

		
	•
	Board meeting fees: $1,500 per meeting attended, whether attended in-person or by phone

		
	•
	Annual committee chairman fees:

		
	◦
	$5,000 for Nominating and Governance Committee

		
	◦
	$7,000 for Compensation Committee

		
	◦
	$12,000 for Audit Committee

		
	•
	Committee meeting fees: $1,000 per meeting attended, whether attended in-person or by phone

		
	•
	Ad-hoc committee meeting fees: If an ad-hoc committee of the Board meets more than once, $1,000 per meeting attended, whether attended in-person or by phone.

All amounts are paid quarterly. There is no pro-rating for service for less than a full quarter; service on any committee for part of a quarter is treated the same as an entire quarter. On occasion, non-committee members are invited to attend committee meetings and may be paid fees for such attendance. All directors were reimbursed in 2012 for reasonable expenses incurred in connection with attending meetings. 
Equity Compensation 
The initial equity grant for new directors will be a fixed value grant of restricted stock units with a value of $200,000.  The value of the grant would be based on the simple average trading price of FEI's common stock during the fiscal quarter preceding the quarter in which the director is appointed to the Board.  The grant will have a four year vesting period.

The annual equity grant for directors will be a fixed value grant with a value of $125,000.  The value of the grant would be based on the simple average trading price of FEI's common stock during the fiscal first quarter preceding the date of grant.  The grant would continue to be comprised equally of restricted stock units and stock options (based on value, as nearly as reasonably possible) with a one year vesting period.  The stock options would have an exercise price equal to the fair market value of FEI's common stock on the date of grant.d1359933_ex4-20.htm

Exhibit 4.20

 

 

MEMORANDUM OF AGREEMENT

Singapore Ship Sale Form [SSF2011]

 

Date of Agreement: 5th of November 2012

 

	
1.  The Sellers:

Neptune Orient Lines Ltd, #06-00 NOL Building, 456 Alexandra Road, Singapore 119962

1.(a) Guarantor (optional)*:

 

	
2.  The Buyers or Nominee**:

 

Lemongina Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960

 

2 (a) Guarantor (optional)*: Performance is to be Guaranteed by Diana Containerships Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960

 

	
3.    Name of the Vessel: M/V APL Garnet

	
4.     IMO No./Official No./Call-Sign:

9077460

 

	
5.  Type, Built Yard, Built Year & GT: Container vessel, Samsung Heavy Industries Co. Ltd, Koje, S. Korea, Blt 1995, 53,519 dwt

 

	
6.  (a) Flag/Port of Registry:

 

Singapore / Singapore

	
7.    Classification Society ("Class"): American Bureau of Shipping

	  

(b) Bare-beat Registry (if any)

	
8. Purchase Price: USD 30,000,000.00 (Thirty Million United States Dollars)

 

(i)       Deposit (10 % of Purchase Price): USD 3,000,000.00 (Three Million United Stales Dollars)

 

(a)      Payee Bank: DnB Bank ASA, Singapore branch

 

(b)      Value Date: Within three (3) banking days from the date or this Agreement and the time-charterparty have been signed by e-mail or fax by both parties.

 

	
(ii) Balance Purchase Price (Purchase Price less Deposit):  USD 27,000,000.00 (Twenty Seven Million United States Dollars)

+ any extras under Clause 7

 

(a) Payee Bank: Citibank NA New York -  CITIUS33, For account and under: Citibank NA Singapore, Pre-cable advice:

CITISGSG, Favouring: NEPTUNE ORIENT LINES LIMITED - Acc.: 0-014593-012, SWIFT MT103 must be released to Citibank, Singapore (swift code CITISGSG) before 4pm Singapore time on the Value date.

 

	
(iii) Place or Closing: Singapore

 

	
(iv) Daily Cost of Delayed Delivery: 

 

7,500.00 USD

 

	
9.  (i) Physical Inspection (Port and Date):  New York , 28th of September 2012

 

     (ii) Pre-Delivery Divers inspection (Port): Any prior port to intended delivery

	
10.         Delivery Place (at safe and accessible anchorage or berth in): Tokyo, Japan. Delivery Date (Range): 15th November 2012 to 31st of December 2012 but always upon first call at Tokyo, Japan around 19th November, 2012. Cancelling Date: 31st of December 2012 in Buyers option.

 

	
 

Declaration:  It is hereby mutually agreed that this Agreement shall be performed according to the terms and conditions set out herein.  Additional clauses, if any, shall be deemed to be fully incorporated into this Agreement.

	
 

11. Signatures – For and on behalf of:

 

The SELLERS:

(Name/title)

 

/s/                                       

Attorney-in-fact

 

GUARANTOR, if any:

(Name/Title)

	
 

 

 

The BUYERS: Lemongina Inc.

(Name/Title)

 

/s/ Symeon Pallos                          

Name: Symeon Pallos

Title: Director and President

 

 

GUARANTOR, if any: Diana Containerships Inc.

(Name/Title)

Name: /s/Ioannis Zafirakis

Title: Director, Chief Operating Officer and Secretary

 

 

©2010 Singapore Dore Maritime Foundation

  

  

  

 

*This is an optional clause applicable in instances where either both parties or one of the parties requires to have a guarantor to guarantee the performance of this Agreement. The Guarantor by signing this Agreement irrevocably and unconditionally guarantees the due performance of the relevant party. In such cases, default by a party shall vest the other party with the immediate right to start a single arbitration against both the named party and its guarantor as co-respondents (in accordance with Clause 15 of this Agreement) and thereby to recover damages from the guarantor, who shall be jointly and severally liable with the defaulter.

 

**The Buyers shall have more than one right of nomination provided that the Nominee is nominated latest upon receipt of the 15 days notice to be given under Clause 5 (a) of this Agreement or by such date as may be agreed to by the Sellers and the Buyers, failing which  the right to nominate shall be lost. A three-party addendum to this Agreement recording the novation in favour of the Nominee Buyers shall be entered into by the Buyers, Sellers and Nominee Buyers.

 

	
1

	
Whereas it is hereby agreed on this day that the Sellers identified in Box 1 have agreed to sell and the Buyers identified

	
2

	
in Box 2 have agreed to buy, the Vessel with specifications stated in Box 3, 4, 5, 6, 7, for the Purchase Price stated in

	
3

	
Box 8, subject to the following terms and conditions:

	 	 
	
4

	
    1.  Deposit

	 	 
	
5

	
The Buyers shall pay a deposit of 10 per cent of the Purchase Price specified in Box 8 (i) as security for the fulfillment

	
6

	
of this Agreement to the bank nominated by the Sellers in Box 8 (i) (a), with a value date no later than that specified

	
7

	
upon in Box 8 (i) (b) of this Agreement. Notwithstanding that the amount received may be lesser due to bank

	
8

	
remittance charges imposed during the normal course of transfer, such amount shall stand as due fulfillment of the

	
9

	
Buyers obligation to pay the deposit and be held in a joint escrow account of both the Sellers and the Buyers, which

	
10

	
shall be released to the Sellers as part of the Purchase Price in accordance with joint written instructions of the Sellers

	
11

	
and the Buyers. The Sellers are to arrange the opening of the joint escrow account latest by 2 banking days prior to the

	
12

	
Value Date. The Buyers, latest together with their remittance of the Deposit, are to arrange bank-to-bank confirmation

	
13

	
from the remitting bank to the bank specified in Box 8 (i) (a) that the Buyers, and the remitting party if different, are a

	
14

	
known customer of the bank and should it be required by the bank in Box 8 (i) (a), the Buyers will also arrange for the

	
15

	
bank-to-bank confirmation to include the confirmation by the remitting bank that they know the source of funds. Both

	
16

	
Sellers and Buyers shall comply with the anti-money laundering laws and regulations of the country in which the

	
17

	
bank(s) specified in Box 8 are located.

	 	 
	
18

	
Any interest earned on the deposit shall accrue to the Buyers whereas any closing fee/fees charged for holding the

	
19

	
deposit shall be borne equally by the Sellers and the Buyers.

	 	 
	
20

	
    2.  Payment

	 	 
	
21

	
(a) The Buyers shall pay the Balance Purchase Price specified in Box 8 (ii) in full including any extras under Clause 7

	
22

	
free of bank/transfer charges to Sellers' nominated bank account at Sellers' bank stated in Box 8 (ii) (a) upon delivery

	
23

	
of the Vessel. The agreed Purchase Price shall be paid for same day value within 3 full banking days, (being banking

	
24

	
days in the place of closing and in the country of the Purchase Price currency) after the Sellers tender the written

	
25

	
notice* of actual readiness of the Vessel for delivery in accordance with Clause 5 (b).

 

	
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(b) The Buyers may delay to take delivery of the Vessel for up to a maximum of further seven (7) consecutive days

	
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paying to the Sellers the sum specified in Box 8 (iv) per day, or part thereof, as compensation for such delay provided

	
28

	
that the Buyers have declared their intention to take late delivery prior to the expiry of the specified 3 full banking

	
29

	
days. Any such amount due shall be paid at the time and place and in the same currency as the Purchase Price and any

	
30

	
additional amounts due under Clause 7. If such delay exceeds seven (7) consecutive days then the Sellers shall have the

	
31.

	
right to cancel this Agreement and claim damages for their losses incurred.

	 	 
	
32

	
*Throughout this Agreement, a written notice is to mean a registered letter, telex, tele-fax, e-mail or other modern form of written

	
33

	
communication between the Sellers and the Buyers.

	 	 
	
34

	
    3. Inspections*

©2010 Singapore Dore Maritime Foundation

  

  

  

 

	
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(a) The Buyers have physically inspected the Vessel at the place and on the date specified in Box 9 (i) as well as the

	
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Classification records and have accepted the Vessel making the sale outright, subject only to the terms and conditions

	
37

	
of this Agreement.

 

	
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(b) The Seller shall rnake the Vessel available for Physical Inspection as per Box 9(i) hereof.,

 

	
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The Buyers shall undertake-the Physical Inspection ** without undue delay to the Vessel.  Should the Buyers cause

	
40

	
undue-delay, the Sellers shall be compensated-for the losses incurred-by them.  The sale shall become definite and

	
41

	
outright, subject only to the terms and conditions of this Agreement, if the Vessel is accepted by the Buyers after the

	
42

	
inspection and a written notice of acceptance from the Buyers is received by the Sellers with 72 hours after

	
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completion of Physical Inspection of the Vessel.  If the Buyers decline the Vessel or if such notice of acceptance is not

	
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received by the Sellers within the afore-mentioned time, the deposit together with any interest earned shall be

	
45

	
immediately released to the Buyers, whateafter this Agreement shall be null and void.

 

	
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*3 (a) and 3 (b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 3 (a) shall apply.

 

	
47

	
**In the context of this Agreement, Physical Inspection of the Vessel is to mean only inspection of the Vessel physically including

	
48

	
taking photographs without opening up of the Vessel and without cost to the Sellers. The Physical. Inspection to include inspection of

	
49

	
Vessel's Classification records, continuous synopsis record, maintenance records, deck and engine log books and available ballast

	
50

	
spaces.

	 	 
	
51

	
    4.  Condition on Delivery

	 	 
	
52

	
Until the Vessel is delivered and taken over by the Buyers, the Vessel and everything belonging to her shall be at

	
53

	
Sellers' risk and expense, subject to the terms of this Agreement. The Sellers shall deliver the Vessel to the Buyers in

	
54

	
substantially the same condition as the Vessel was at the time of inspection*, with the exception of fair wear and tear,

	
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with present Class maintained free from any outstanding Class conditions and/or recommendations**, free from

	
56

	
damage affecting Vessel's Class, with all Class and trading certificates (both national and international) clean and valid

	
57

	
at the time of delivery. All cargo spaces shall be clean and free of any cargo, subject only to immovable residues. If the

	
58

	
Vessel is not in the same condition as the Vessel was at the time of inspection, the Buyers may reject the Vessel but

	
59

	
only if the difference in condition has a substantial impact upon the Buyers' ability to trade the Vessel. Otherwise, the

	
60

	
Buyers' remedy for differences in condition shall lie in damages

 

	
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The burden of proof as to the condition of the Vessel at the time of inspection shall be on the Buyers.

 

	
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*Inspection shall mean the Buyers' inspection according to 3(a) or 3(b) as applicable. If the Vessel is taken over without

	
63

	
inspection, the date of this Agreement shall be the relevant date.

 

	
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**Any notes in Class reports which are accepted by Class without imposing a condition/recommendation are not to be taken into

	
65

	
account and shall not constitute outstanding Class conditions and/or recommendation within the meaning of this Clause.

 

	
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    5. Notices and Notice of Actual Readiness

 

	
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(a) Prior to the arrival of the Vessel at the Delivery Place specified in Box 10, the Sellers shall provide the Buyers with

	
68

	
20, 15, 7, and 3 days advance written notices to keep the Buyers advised of the estimated date and port of delivery and

	
69

	
of the Vessel's itinerary. Following the tender of any notice, Sellers are to take reasonable steps not to hinder delivery

	
70

	
by the date set out in the notice.

 

	
71

	
(b) Upon the arrival of the Vessel at the Delivery Place and when the Vessel is physically ready in accordance with

	
72

	
Clause 4 for delivery and Sellers have ready all of the Sellers' documents required by Clause 8 (save for the Certificate

	
73

	
of Ownership or equivalent, Class Maintained Certificate, Invoice for Bunkers and Lubricants and greases and the Protocol of

	
74

	
Delivery and Acceptance), the Sellers shall tender a written Notice of Actual Readiness of the Vessel to the Buyers.

	
75

	
Subject only to Clause 2 (b), the Buyers shall take delivery of the Vessel within 3 full banking days after the Sellers

	
76

	
tender such notice.

 

	
77

	
(c) However, if the Vessel becomes an actual; constructive or compromised total loss before delivery, the Sellers incur

	
78

	
no liability under this Agreement, the Buyers arc entitled to the immediate return of the deposit and any interest earned

	
79

	
thereon and thereafter this Agreement shall be null and void.

 

	
80

	
    6.  Pre-Delivery Divers Inspection

 

	
81

	
Prior to delivery, the Sellers shall make the Vessel available to the Buyers for underwater inspection. The Sellers shall

	
82

	
be responsible for ensuring that the port, anchorage or berth chosen for underwater inspection of the Vessel is suitable

	
83

	
and permitting such inspection.

 

	
84

	
(a) The Buyers shall have the right to appoint, at their own expense, a Class approved diver to inspect the Vessel's

	
85

	
underwater parts below the deepest load line including rudder and propeller upon the Vessel's arrival at the port

 

©2010 Singapore Dore Maritime Foundation

  

  

  

 

	
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specified in Box 9(ii). The Sellers shall grant Buyers sufficient daylight hours within which to conduct the said

	
87

	
inspection and Sellers shall be obliged to ensure attendance of the Class surveyor to monitor the said inspection

	
88

	
which may be attended by Buyers and Sellers' representatives without interference to Class and/or the divers.

	
89

	
However, should the Buyers fail to arrange for such inspection then they shall lose the right of such divers

	
90

	
inspection.

 

	
91

	
(i) If any defects are found during underwater inspection including rudder and propeller that shall affect the

	
92

	
Vessel's present Class and the repair of which Class agrees can be deferred to the Vessel's next scheduled

	
93

	
dry-docking, the Buyers' sole remedy shall be the payment by the Sellers of the estimated cost of repair of

	
94

	
such defects only excluding any dry-dock costs, as per the average of the quotations of two reputable repair

	
95

	
yards independent of the Sellers and the Buyers in the delivery area, one to be selected by each party. The said

	
96

	
average amount in respect of the cost of repair shall be deducted from the Purchase Price to be paid to the

	
97

	
Sellers at the time of delivery of the Vessel. The costs of Class attendance and divers fees incurred for the

	
98

	
underwater inspection shall be borne by the Buyers unless damage is found and the Class imposes a

	
99

	
recommendation in which case both costs shall be borne by the Sellers.

 

	
100

	
(ii) If damage is found for which Class requires immediate repair, then Sellers shall repair such damage without

	
101

	
delay prior to delivery. Should the Sellers be required to dry-dock the Vessel to repair such damage, then

	
102

	
Clause 6 (b) shall apply.

 

	
103

	
(b) Where the Sellers are required to dry-dock the Vessel under Clause 6 (a) (ii), the Sellers shall also enable the

	
104

	
inspection of the Vessel's bottom, rudder, propeller, tail shaft and other underwater parts by a surveyor of the

	
105

	
Classification Society to the satisfaction of the Classification Society standards. The Sellers shall be obliged to

	
106

	
rectify any defects found that affect the present Class of the Vessel within the agreed time or if no agreement is

	
107

	
reached then latest within 14 days of such damage being found (and, insofar as necessary, the Cancelling Date

	
108

	
shall be extended to allow the full agreed or 14 days' repair period), failure of which shall enable the Buyers to

	
109

	
cancel the Agreement and recover the deposit together with interest.

 

	
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(i) The Buyers shall bear the cost of the survey of the tail shaft system unless the Classification Society requires

	
111

	
such survey to be carried out, in which case the Sellers shall bear the cost.. The expenses in connection with

	
112

	
putting the Vessel in and taking her out of dry-dock including dry-dock dues and Classification Society's fees

	
113

	
shall be paid by the Sellers if any condition or recommendation, excluding surveyor notes is issued as a result

	
114

	
of the survey. In all other cases Buyers shall pay the aforesaid expenses, dues and fees.

 

	
115

	
(ii) The Buyer shall have the right to place a representative for observation whilst the Vessel is in dry-dock

	
116

	
without interfering with the Classification surveyor's work or decisions, during the Classification Society

	
117

	
inspections.

 

	
118

	
(iii) The Buyers shall have the right to have the underwater parts of the Vessel cleaned and painted at their risk and

	
119

	
expense without interfering with the Classification Society's or the Sellers' work, and without affecting timely

	
120

	
delivery of the Vessel. Upon the completion of the Sellers' work, the Sellers may tender Notice of Actual

	
121

	
Readiness of the Vessel for delivery notwithstanding the non-completion of Buyers' work and

	
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notwithstanding that the Vessel is not at the Delivery Place, upon which the Buyers shall be obliged to take

	
123

	
delivery of the Vessel in accordance with the aforesaid notice. All dry-docking expenses incurred after such

	
124

	
delivery except undocking expenses under Clause 6 (a) (ii) shall be borne by the Buyers.

 

	
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The Classification Society shall be the only entity to determine whether any underwater damage constitutes a condition

	
126

	
of Class, and such determination shall be final and binding on both parties.

 

	
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    7. Spares/ Bunkers & Others

 

	
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The Sellers shall deliver the Vessel to the Buyers with everything belonging to her including all spare parts and spare

	
129

	
equipment on board and on shore except those spare parts that are on order. Any forwarding charges shall be the

	
130

	
Buyers' expense. However, the Sellers are not required to replace any spare parts that are taken out of spare and used

	
131

	
as replacement in the Vessel prior to delivery unless required by Class. The radio installation and navigational

	
132

	
equipment shall be included in the sale, along with all unused stores and provisions without extra payment. Any

	
133

	
crockery, plates, cutlery, linen and other items bearing the Sellers' name, if taken by the Sellers, shall be replaced with

	
134

	
unmarked items. However, the following items shall be excluded without compensation;

 

	
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(a) Items that are on use exclusively in Sellers' Vessel like library, forms etc;

	
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(b) Personal belongings including slop chest of the Vessel captain, officers and crew;

	
137

	
(c) Items on hire;

	
138

	
1)  Oxygen bottles - 6 bottles

	
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2)  Acetylene bottles - 5 bottles

	
140

	
3)  Freon bottles - 2 bottles

	141 	4)  Argon gases bottles - 2 bottles 
	142 	5)  Nitrogen bottle - 1 bottle 
	
143

	
6)  Iridium laptop - X 1 (Model - HP Compaq NX 6320) / R4S Server X1 / Seagull training

	
144

	
      Computer X 1 (set).

	
145

	
7)  Vast communication system (inclusive Phone, Antenna & BDE equipment).

	146 	8)  Eventual reefer spareparts 

©2010 Singapore Dore Maritime Foundation

  

  

  

 

	
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(d) Others,if any...............................

	
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.....................................

 

	
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The remaining bunkers, unused lubricants of all grades and greases in designated storage tanks (not header tanks) and

	
150

	
unopened drums shall be taken over by the Buyers, on payment of the net price excluding barging expenses paid by the

	
151

	
Sellers at the date of last supply to the Vessel and evidenced by relevant invoices or vouchers; copies of which shall be

	
152

	
made available to the Buyers at the time of delivery. Payment under this Clause shall be made in the same currency

	
153

	
and at the same time and place as the Purchase Price. For avoidance of doubt, during handover the bunkers remaining

	
154

	
onboard are to remain the property of the Sellers as time charterers and, although bunkers will be measured and agreed

	
155

	
by the respective representatives of the Sellers and the Buyers at the time of delivery, there will be no payment for

	
156

	
bunkers on delivery, with the Buyers to buy same back upon redelivery from time charter.

 

	
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    8.  Documentation

 

	
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(a) As soon as practically possible after the Deposit in Box 8 (i) has been paid in accordance with Clause 1. the Sellers

	
159

	
shall forward the Buyers scanned or photocopies of all requested Plans, Registry, Class, Safety/Trading Certificates

	
160

	
and other documents reasonably required for preparation of Buyers registration and management documentation.

 

	
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(b) At the Place of Closing specified in Box 8 (iii) at the time of delivery the Sellers and the Buyers shall sign and

	
162

	
deliver to each other a signed Protocol of Delivery and Acceptance stating the date, time and place of delivery of the

	
163

	
Vessel from the Sellers to the Buyers.

 

	
164

	
The Sellers shall furnish the Buyers with the following documents (unless otherwise specified all to be originals in

	
165

	
English or with official English translations) in exchange for payment of the full Purchase Price of the Vessel:

 

	
166

	
(i) Two (2) One (1) Bills of Sale to be notarially attested and then legalized by the appropriate authorities as

	
167

	
required by the Buyers' incoming flag specifying that the Vessel is free from all encumbrances as set out in Clause

	
168

	
9(a) of this Agreement. The notarial certificate is to confirm the identity of the signatory, his/her ability to bind the

	
169

	
Sellers and the authenticity of the signature.

 

	
170

	
(ii) Extract of the Resolutions of the Sellers' Executive Committee and Shareholders meetings authorizing the sale

	
171

	
and transfer of the Vessel pursuant to this Agreement and appointing persons to represent the Sellers in connection

	
172

	
with the sale of the Vessel and the execution of Bill of Sale and any other documents in connection with the sale of

	
173

	
the Vessel including the issuance of a Power of Attorney. Such Resolutions are to be notarially attested and then

	
174

	
legalized by the appropriate authorities if required by the Buyers' incoming flag. The notarial certificate is to confirm

	
175

	
the identity of the signatory, his/her ability to bind the Sellers and the authenticity of the signature.

 

	
176

	
(iii) Power of Attorney issued by the Sellers authorizing their named representative(s) to effect the sale and

	
177

	
transfer of the Vessel to the Buyers, pursuant to this Agreement and carry out any delivery/closing formalities

	
178

	
including receiving the Deposit and the Balance Purchase Price or any other amounts pursuant to this Agreement.

	
179

	
Such Power of Attorney is to be notarially attested and then legalized by the appropriate authorities if required by the

	
180

	
Buyers' incoming flag. The notarial certificate is to confirm the identity of the signatory, his/her ability to bind the

	
181

	
Sellers and the authenticity of the signature.

 

	
182

	
(iv) One (1) Certificate of Ownership or equivalent, dated on the date of Vessel's delivery or such other date as the

	
183

	
parties may agree, issued by the competent authorities showing that the Vessel is registered in the ownership of the

	
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Sellers and is free from registered mortgages and encumbrances.

 

	
185

	
(v) A certified true copy of the Sellers' constitutive documents.

 

	
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(vi) A current Certificate of Good Standing or Equivalent.

 

	
187

	
(vii) Three (3) Commercial Invoices setting out the main particulars of the Vessel and the Purchase Price of the

	
188

	
Vessel.

 

	
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(viii) One (1) Commercial Invoice setting out the particulars and cost of bunkers and lubricants and greases 

	
190

	
remaining on board together with copies of the respective vouchers.

 

	
191

	
(ix) Certificate of Deletion or in lieu thereof, a Letter of Undertaking to provide the Certificate of Deletion and

	
192

	
closed CSR from the present Ship Registry within 30 days from the date of delivery.

 

	
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(x) (x) Letter from the Sellers confirming to certify to the best of their knowledge at the time of delivery that the

	
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Vessel is free from all encumbrances, charters, mortgages, maritime liens, writs (save where security has been

	
195

	
furnished), port state and other administrative detentions, stowaways, trading commitments and any other debts

	
196

	
whatsoever. The Seller shall indemnify the and undertaking to indemnify fully Buyers against all consequences

	
197

	
of any claims against the Buyers that may arise due to claims against the Vessel originating prior to the time of

©2010 Singapore Dore Maritime Foundation

  

  

  

	
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the Vessel's delivery to the-Buyers.

 

	
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(xi) Three (3) Protocols of Delivery and Acceptance. (One each to be retained by the Buyers, the Sellers and the

	
200

	
closing Bank)

 

	
201 

	
(xii) Class Maintained Certificate dated not more than 3 working days prior to the date of delivery. However, if the

	
202

	
Class Maintained Certificate is issued prior to the underwater inspection, then a copy of the Class report following

	
203

	
the divers' inspection also to be included.

 

	
204

	
(xiii) The Sellers' letter of confirmation that to the best of their knowledge the Vessel:

	
205

	
—   has not sustained grounding or any other damage to underwater parts since underwater inspection (or

	
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most recent dry-docking in case there is no divers' inspection).

	
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—   is not black listed by any government, state, country, political sub division and union.

 

	
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(xiv) A copy of Sellers or Sellers manager's letter(s) to the respective authorities confirming cancellation of all

	
209

	
Inmarset and other communication contracts for the Vessel effective at the time of delivery.

 

	
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(xv) Letter from the Sellers confirming to the best of Sellers knowledge and belief, wages of crew have been duly

	
211

	
paid when due and the Sellers crew do not have any outstanding claim against the Vessel at the time of delivery.

 

	
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(c) At the time of delivery of the Vessel the Buyers shall furnish the Sellers with the following documents (unless

	
213

	
otherwise specified all to be originals in English or with official English translations):

 

	
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(i) A certified true copy of the Buyers' constitutive documents, the Buyers in-house attorney-at-law to certify the

	
215

	
constitutive documents as a true copy.

 

	
216

	
(ii) A current Certificate of Good Standing or equivalent.

 

	
217

	
(iii) Resolution of the Board of Directors of the Buyers approving the purchase of the Vessel from the Sellers and

	
218

	
granting a power of attorney to authorized representatives of the Buyers. Such Resolution to be apostilled.

	
219

	
notarially attested and then legalized by the appropriate authorities as required by the Sellers.  The notarial

	
220

	
certificate is to confirm the identity of the signatory, his/her ability to bind the Buyers and the authenticity of the

	
221

	
signature.

 

	
222

	
(iv) Power of Attorney of the Buyers authorizing the Buyers' representatives or their nominees to do all such acts

	
223

	
and things which the attorney may consider necessary or desirable on behalf of the Buyers with respect to the

	
224

	
purchase and taking delivery of the Vessel but including specifically, acceptance of the Bill of Sale, signing of the

	
225

	
Protocol of Delivery and Acceptance, release/payment of Deposit and Balance Purchase Price or any other

	
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amounts pursuant to the Agreement. Such Power of Attorney to be apostilled. notarially' attested-and-then-legalized

	
227

	
by the appropriate authorities as required by the Sellers.  The notarial certificate is to confirm the identify of the

	
228

	
signatory, his/her ability to bind the Buyers and the authenticity of the signature.

 

	
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(v) Certificate from the President of the Buyers confirming the names of the Board of Directors and shareholders

	
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of the Buyers.

 

	
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(vi) A declaration duly signed by two (2) Directors of the Buyers, which shall be apostilled, stating that:

 

	
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a. The Buyers are not in violation of any anti-corrupt practices law or anti-terrorism law or any similar law relating

	
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to money laundering, terrorism or terrorist financing; and

 

	
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b. The Buyers will not fund all or part of any payment of the Purchase Price of the Vessel out of proceeds derived

	
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from transactions that violate any prohibition under any anti-terrorism law or any similar law relating to money

	
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laundering, terrorism or terrorist financing.

 

	
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(vii) A corporate guarantee duly signed and delivered by Diana Containcrships Inc., the parent company of the

	
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Buyers, to the Sellers in relation to the due performance of the Buyers of their obligations under this Agreement.

 

	
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(d) As soon as possible but not later than 14 days prior to the Vessel's expected readiness for delivery, the Sellers and

	
240

	
the Buyers shall exchange by fax or email (copies to the extent possible) or drafts of the documents listed in sub

	
241

	
clauses (b) & (c) above for the other Party's review and comments. Copies of executed versions which are to be in

	
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strict conformity with the drafts are also to be circulated latest 3 days prior to delivery.

 

	
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At the time of delivery onboard the Vessel, the Sellers shall hand over to the Buyers all Classification Certificates,

	
244

	
Plans, Drawings, Record Books, Instruction Manuals (excluding ISM or other documents specific only to the

	
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Sellers/their Managers). All other certificates and documents onboard and pertinent to the Vessel shall also be handed

	
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over to the Buyers unless the Sellers are required to retain same, in which case photocopies are to be left onboard. All

	
247

	
other documents which may be in the Sellers'/Sellers manager's possession shall be promptly forwarded to the Buyers

©2010 Singapore Dore Maritime Foundation

  

  

  

	
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after delivery. Forwarding charges, if any, to be for the Buyers' account. The Sellers may keep the Vessel's log books

	
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but the Buyers to be so advised and have the right and opportunity to take copies of same.

 

	
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    9. Encumbrances

 

	
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a) It is a condition of this Agreement, any breach of which will entitle the Buyers to reject the Vessel, that the Vessel,

	
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at the time of delivery, is free from all encumbrances, charters, mortgages, maritime liens, writs (save where security

	
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has been furnished), port state and other administrative detentions, stowaways, trading commitments and any other

	
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debts whatsoever.

 

	
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b) The Sellers hereby undertake to indemnify fully the Buyers against all consequences of any claims against the

	
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Buyers that may arise due to claims against the Vessel originating prior to the time of delivery of the Vessel to the

	
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Buyers.

 

	
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    10.  Expenses

 

	
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The Buyers shall bear all expenses including taxes and fees in connection with the purchase and registration of the

	
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Vessel under the Buyers' flag, and similarly the Sellers shall bear all expenses in connection with closing of the

	
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Sellers' Registry.

 

	
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    11. Vessel Name

 

	
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After the end of the time-charter party as per Clause 18 below, the The Buyers undertake, upon delivery of the Vessel,

	
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shall to change the name of the Vessel and alter its funnel markings.

 

	
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    12. Buyers Default

 

	
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(a) In the event of failure by the Buyers to pay the agreed Deposit or to provide the bank-to-bank confirmation set out

	
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in Clause 1 by the Value Date, the Sellers have the right to cancel this Agreement and they shall be entitled to claim

	
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compensation for their losses and expenses (but with no automatic right to compensation in the amount of the Deposit).

 

	
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(b) The failure to pay the agreed Purchase Price, and any additional amounts due under Clause 7 and Clause 2(b),

	
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within the deadline provided by Clause 2(a) or, if applicable, Clause 2(b), shall vest the Sellers with the right to cancel

	
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this Agreement and the Deposit with any interest earned thereon shall be forfeited to the Sellers (irrespective of the

	
272

	
amount of the Sellers' actual losses and expenses). Insofar as the Deposit does not cover the Seller's actual losses and

	
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expenses, they shall be entitled to claim further compensation for those losses and expenses not so covered.

 

	
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(c) The burden of proving any loss and expense shall be on the Sellers.

 

	
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    13. Sellers Default

 

	
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(a) In the event of failure on the part of the Sellers to give Notice of Actual Readiness in accordance with Clause 5(b)

	
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latest within the Cancelling Date specified in Box 10 or, Notice of Actual Readiness for Delivery having been

	
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tendered, failure on the part of the Sellers to provide the documents required by Clause 8 and/or to deliver the Vessel

	
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as provided in Clause 9, the Buyers shall have the option to cancel this Agreement.

 

	
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(b) If after Notice of Actual Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to

	
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be physically ready for delivery and is not made physically ready again in accordance with Clause 4 and a Notice of

	
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Actual Readiness for Delivery re-tendered latest within the Cancelling Date in Box 10, the Buyers shall retain their

	
283

	
right to cancel.

 

	
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(c) In the event the Buyers choose to cancel this Agreement the Deposit together with interest earned shall be released

	
285

	
to them immediately.

 

	
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(d) In addition, save where the failure was caused by matters outside of the Sellers' reasonable control, the Buyers shall

	
287

	
be entitled to claim compensation for all their losses and expenses caused by failure of the Sellers to give Notice of

	
288

	
Actual Readiness latest within the Cancelling Date in Box 10 or, if Notice of Actual Readiness for Delivery has been

	
289

	
tendered, caused by failure by the Sellers to provide the documents required by Clause 8 and/or to deliver the Vessel as

	
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provided in Clause 9. The burden of proving any loss and expense, additional or otherwise, shall be on the Buyers. The

	
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burden of proving that the failure was caused by matters outside of the Sellers' reasonable control shall be on the

	
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Sellers.

 

	
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    14. Buyers Representatives

 

©2010 Singapore Dore Maritime Foundation

  

  

  

	
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The Buyers arc entitled to place two representatives on board the Vessel after signing a letter of indemnity in Sellers

	
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usual form, for the purpose of familiarization and as observers at their expense and risk after this Agreement has been

	
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signed by both parties and the Deposit has been lodged. The Buyers' Representatives are to remain onboard until

	
297

	
delivery under the Master's control, but are to be allowed access to the Vessel's main spaces, machinery and

	
298

	
equipment without interference to the Vessel or her operations.

 

	
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    15. Arbitration & Governing Law

 

	
300

	
i)* This Agreement and any guarantee contained herein shall be governed by and construed in accordance with

	
301

	
Singapore/English* Law and any and all disputes arising out of or in connection with this Agreement, including any

	
302

	
question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in

	
303

	
Singapore in accordance with the Arbitration Rules of the Singapore Chamber of Maritime Arbitration for the time

	
304

	
being in force at the commencement of the arbitration.

 

	
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ii)* This Agreement and any guarantee contained herein shall be governed by and construed in accordance with

	
306

	
.......................... Law and any and all disputes arising out of or in connection with this Agreement, including

	
307

	
any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in

	
308

	
........................... in accordance with the .............................. Rules for the time being in force at the

	
309

	
commencement of the arbitration.

 

	
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*15(i) and (ii) are alternatives, delete whichever is not applicable. In the absence of deletions, alternative 15 (i) and Singapore law

	
311

	
shall apply to the exclusion of any other law. In the absence of selection by the parties as to the applicable law, seat of  arbitration

	
312

	
and arbitration rules under alternative 15 (ii); Singapore law shall apply to the exclusion of any other law, Singapore shall be the

	
313

	
seat of arbitration and the arbitration rules of the Singapore Chamber of Maritime Arbitration shall apply.

 

	
314

	
    16. Confidentiality Clause

 

	
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All negotiations are to be kept strictly private and confidential between the parties involved, subject however to any

	
316

	
disclosure requirements of the U.S. SEC and NASDAQ or SGX.  Both Parties agree in good faith to keep the terms and

	
317

	
conditions of this Agreement private and confidential except as required by law.  In the event the sale or details thereof

	
318

	
become known or reported in the market neither the Sellers nor the Buyers shall have the right to withdraw from the

	
319

	
sale or fail to fulfill all their obligations under this Agreement.

 

	
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    17.  Entire Agreement Clause

 

	
321

	
This Agreement and any Addenda thereto contain the entire agreement between the Sellers and the Buyers relating to

	
322

	
the transaction which is the subject of this Agreement and all negotiations, understandings and agreements whether in

	
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writing or otherwise between the Sellers and the Buyers are superseded and/or replaced by this Agreement.

 

	
324

	
    18. Time Charter

 

	
325

	
The Vessel to be chartered to NOL Liner (ptc) Ltd (or Guaranteed nominee or other entity of the NOL Group subject

	
326

	
to Buyers' approval), for a period of 34 months at a rate of USD 27.000 per day including overtime with 30 days more

	
327

	
or less in charterers option. Commencement of the time-charter party to commence simultaneously upon delivery of the

	
328

	
Vessel to the Buyers under this Agreement.

 

	
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©2010 Singapore Dore Maritime Foundation

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