Document:

Exhibit 10.2

 

 

	
   

  	
  Norwegian
  Shipbroker's Association's Memo-

  
	
   

  	
  randum of
  Agreement of sale and purchase of

  
	
   

  	
  ships.
  Adopted by The Baltic and International

  
	
   

  	
  Maritime
  Councils (BIMCO) in 1956

  
	
   

  	
  Code-name

  
	
   

  	
  SALEFORM 1993

  
	
   

  	
  Revised 1966, 1983 and 1986/87.

  
	
   

  	
   

  

 

 

MEMORANDUM
OF AGREEMENT

 

Date:
3rd November 2004

 

ESSAR SHIPPING LIMITED, of Eassar House,
Mahalaxmi, Mumbai 400 034, India

hereinafter called the Sellers, have agreed
to sell, and

TOP TANKERS INC.,  OF
109-111 Messogion Ave, Politia Centre, Bldg C1, Athens 115 26, Greece, or its
guaranteed nominee

hereinafter
called the Buyers, have agreed to buy

 

Name: M.T. KAMLESH

 

Classification
Society/Class: DNV

 

 

	
  Built: 1991

  	
  By: Hyundai
  Heavy Industries Ltd, South Korea

  
	
   

  
	
  Flag: Indian

  	
  Place of Registration:  Mumbai

  
	
   

  
	
  Call Sign:
  ATME

  	
  Grt/Nrt:
  79,718/46,569

  
	
   

  	
   

  
	
  IMO Number:
  9000560

  	
   

  

 

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, and
India.

 

"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 $50,550,000 (United States Dollars
Fifty Million Five Hundred and Fifty Thousand only) Cash

 

2.             Deposit

 

A) Non-refundable
Deposit

Buyers are to place
the amount of USD 500,000 promptly upon lifting of Sellers BOD approval as
deposit in a joint account (account details to be advised) between the Sellers
and the Buyers. Buyers to give proof of transmission of deposit within 24 hours
upon Sellers lifting their BOD approval. This proof to come directly from the
Buyer's bank to Sellers bank. Non-payment of the deposit under this Clause will
constitute a default and Sellers will have full recourse to Top Tankers Inc.
for the amount.

 

This amount will be
a non-refundable deposit in the event the Buyers do not lift their
"subject" for MT Kamlesh (the "Vessel") as per Clause 17.
In such a case the deposit will be released to the Sellers. In the event the
Buyers exercise the option to buy the Vessel as per Clause 17B, then the amount
of USD 500,000 will be adjusted towards the 10% Deposit as per Clause 2B. In no
event will more than USD 500,000 of such non-refundable deposit be adjusted
towards the purchase of this Vessel.

 

B) Ten Percent (10%)
Deposit

As security for the correct fulfillment of this Agreement the Buyers
shall pay a deposit of 10% (ten per cent) of the Purchase Price within three (3) banking
days from the date of  the Buyers lifting their subject in
Clause 17 of this Agreement. This deposit shall be placed with Sellers nominated bank in London.

 

 

and held by them in a joint interest bearing
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 by the bank for holding the said deposit and closing shall be
borne equally by the Sellers and the Buyers.

 

3.                                       Payment

 

The said Purchase Price along with extra payment for
bunkers/luboils etc. (as applicable) shall be paid in full free
of bank charges to Sellers
nominated account at closing on delivery of the Vessel and in exchange for the usual/normal
sale documents as mutually agreed, but not later than 3 banking
days after the Vessel is in every respect physically ready for delivery in
accordance with the terms and conditions of this Agreement and Notice of
Readiness has been given in accordance with Clause 5.

 

4.                                       Inspections

 

a)*                               The
Buyers have inspected and accepted the Vessel's classification records. The
Buyers have also inspected the Vessel at La Coruna in October 2004  and have accepted the Vessel following this
inspection and the sale is outright and definite, subject only to the terms and
conditions of this Agreement.

 

5.                                       Notices, time and place of delivery

 

a)                                      The
Sellers shall keep the Buyers well informed of the Vessel's itinerary and shall
provide the Buyers with 15,10,
7,5 days approximate notice, and 3,1 days definite notice of the estimated time of
arrival at the intended place 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. Notices to
be sent by email or fax via brokers

 

b)                                     The
Vessel shall be delivered and taken over charter-free or with present charter attached, free of cargo
(if delivered charterfree), free of stowaways, safely afloat at one safe and freely accessible
berth, port
or anchorage Worldwide
range, but excluding ice-bound areas and war-risks areas (not permitted by
Lloyds underwriters even upon payment of AWRP) in the Sellers'
option.

 

 

 

2

 

Expected time
of delivery: 1st January
2005 - 15th April 2005 (both days inclusive) in Sellers option Sellers will
endeavor to deliver the Vessel without obligation or liability to deliver to
Buyers upon completion of current voyage from the time of Buyers lifting their
‘subject’ in Clause 17. The Buyers are aware of the terms of the Time Charter,
and same has been accepted.

 

                                                Date
of cancelling (see Clauses 5c), 6b) (iii) and 14): 15th April 2005 in 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 2 working days of
receipt of the notice or of accepting the new date as the new cancelling date.
If the Buyers have not declared their option within 2 working days of
receipt of the Sellers' notification or if the Buyers accept the new date, the
date proposed in the Sellers' notification shall be deemed to be the new
cancelling date and shall be substituted for the cancelling date stipulated in
line 61.

 

If this
Agreement is maintained with the new cancelling date all other terms and
conditions hereof including those contained in Clauses 5a) and 5c) shall
remain unaltered and in full force and effect. 

 

Buyers and Sellers
will not have the right for any claims due to the fact that Vessel missed her
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 See Clause 21

 

3

 

*                                         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.

 

 

7.             Spares/bunkers, etc.

 

The Sellers shall deliver the
Vessel to the Buyers with everything belonging to her on board, on order and on
shore. All spare parts and spare equipment, if any, belonging to the Vessel at
the time of inspection used or unused, whether on board or not shall become the
Buyers' property. Forwarding charges, if any, shall be for the Buyers' account.
The Sellers are not required to replace spare parts which are taken out of
spare and used as replacement prior to delivery, but the replaced items shall
be the property of the Buyers. The radio installation, wireless and
navigational equipment, loading
instrument (loadicator) and GMDSS, PC's and Printers shall be
included in the sale

 

4

 

without extra payment. Unused/used 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 slop chest are to be excluded from the sale, as well
as the following additional items (including items on hire):

 

-   VIDEOTEL LIBRARY

-   OXYGEN, ACETYLENE &
FREON CYLINDERS

 

The Buyers shall take over and pay extra  for unused/unbroached lubricating
oils in storage tanks and sealed drums at Sellers net contract prices (less Sellers
discounts/rebates) at Vessel's last supply which to be evidenced by relevant
invoices/vouchers. If vessel is delivered with charter attached, it is
understood that no payment will be made for bunkers on board which belong to
the Charterers. If vessel is delivered charterfree, then Buyers also to pay
extra for remaining bunkers at Sellers last net contract price at Vessel's last
supply which to be evidenced by relevant invoices/vouchers (excluding barging).
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/payment: London

 

In exchange for payment of the
Purchase Price and delivery
of the Vessel, the Buyers and Sellers shall provide each other with their
respective delivery documents. Buyers and Sellers shall mutually advise their
requirements and the same to be incorporated as an Addendum to this Agreement.
Signing of such Addendum shall by no means delay signature of this Agreement by
both parties. However the list of delivery documents required by Buyers/Sellers
to be advised within 7 days of signing this Agreement by fax.

 

5

 

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 on board the
classification certificate(s), a set of manuals/drawings relative to the main engine/auxillaries in
addition to all other existing manuals/instruction books as well
as all plans and
technical records etc., which are on board the Vessel or in their possession.
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 which
may be in the Sellers’ possession shall be promptly forwarded to the Buyers at
their expense, 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 encumbrances, mortgages and maritime liens or any other debts
whatsoever. The Sellers hereby undertake to indemnify the Buyers against all
consequences of claims made against the Vessel which have been incurred prior
to the time of delivery.

10.           Taxes, etc.

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

11.           Condition on delivery

The Vessel with everything belonging to her shall be at the Sellers’
risk and expense until she is delivered to the Buyers, but subject to the terms
and conditions of this Agreement she shall be delivered and taken over in substantially the same condition
as she was at the time of inspection, fair wear and tear expected. However, the
Vessel shall be delivered with her present class maintained with all continuous surveys valid
and upto date, free from any condition of Class/recommendation*,
free of average damage affecting the Vessel’s class, and with her
classification certificates and national/international trading certificates, clean, valid and
unextended without condition/recommendation* by Class or the relevant
authorities at the time of delivery. “Inspection” in this Clause 11, shall
mean the Buyers’ inspection according to Clause 4 a), if

•                                          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.

 

6

 

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 or new
cancelling date as per Clause 5c 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 or new cancelling date as per
Clause 5c 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 under Clause 2A and 2B together with
interest earned shall be released to them immediately. Buyers and Sellers will not have the
right for any claims due to the fact that Vessel missed her Cancelling date.

 

15.           Buyers’ representatives

 

After this Agreement has been signed
by both parties and the 10%
deposit under
Clause 2B has been lodged, the buyers have the right to
place two representatives on board the Vessel for a maximum period of thirty (30) days
at their sole risk and expense, who will remain on board until delivery. These
representatives are on board for the purpose of familiarisation and in the
capacity of observers only, and they shall not interfere in any respect with
the manning/operation
of the Vessel. The Buyers’ representatives shall sign the Sellers’ letter of
indemnity prior to their embarkation.

 

16.           Arbitration

 

a)*                               This
Agreement shall be governed by and construed in accordance with English law and
any dispute arising out of this Agreement shall be referred to arbitration in
London in accordance with the Arbitration Acts 1950 and 1979 or any statutory
modification or re-enactment thereof for the time being in force, one
arbitrator being appointed by each party. On the receipt by one party of the
nomination in writing of the other party’s arbitrator, that party shall appoint
their arbitrator within fourteen days, failing which the decision of the single
arbitrator appointed shall apply. If two arbitrators properly appointed shall
not agree they shall appoint an umpire whose decision shall be final. Arbitrators to be members of London
Maritime Arbitrators Association.

 

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

 

 

 

Clauses 17 — 22 MAKE
AN INTEGRAL PART OF THIS AGREEMENT.

 

7

 

17)   BUYERS SUBJECTS
& OPTION FOR VESSELS

 

A)
This Agreement is part of an agreement reached between Buyers and Sellers for
enbloc sale of five (5) vessels, namely, MT Kamlesh, MT Shravan,
MT Kishore, MT Nandu and MT Chanda, and this
sale is SUBJECT to "FOLLOW ON OFFERING" BY MSSRS TOP TANKERS INC. This
'Subject' is to be lifted latest by
25th November 2004, close of business, New York, USA

 

B)
At the time of lifting Buyers 'subject' under sub-clause (a) above, Buyers to
declare the number of vessels
to be purchased, which in any case will be minimum one (1). In the event
that the number of vessels to be purchased
is less than five (5), then the order
of purchase of the vessels by the  buyers
will be in the following sequence:

 

– If l vessel to be purchased by the Buyers it will
be MT Kamlesh

– If 2 vessels to be purchased by the Buyers it
will be MT Kamlesh and MT Shravan

– If 3 vessels to be purchased by the Buyers it will
be MT Kamlesh, MT Shravan, and MT Kishore

– If 4 vessels to be purchased by the Buyers it
will be MT Kamlesh, MT Shravan, MT Kishore  and MT Nandu

 

18)   SELLERS
SUBJECT

 

Sellers'
Board Approval has
been lifted and conveyed to Buyers through Brokers via fax dated 3rd November 2004 at 1500 hours Indian time.

 

19)   P
& C

 

The
Price, terms and conditions of the sale are to be kept strictly private and
confidential by all parties
concerned. However, should the details of the sale become known or reported in
the market,  neither the Buyers nor the Sellers shall have
the right to cancel this Agreement. Except that certain terms and
conditions of this transaction will be publicly disclosed and disseminated as
required by S.E.C., NASDAQ, BSE and SEBI
rules and regulations.

 

20)   NO
BLACKLIST

 

Sellers
to confirm in writing that to the best of their knowledge, the Vessel is not
blacklisted by any  state or organisation such as the ITF or by the
Arab Boycott League.

 

21)   DRYDOCKING

 

No
pre-delivery drydocking clause to apply. However the Buyers have the right to
inspect the Vessel's underwater
parts by a diver approved by Class, which shall be arranged by Buyers at Buyers expense prior delivery. If the conditions
at the place of underwater survey are unsuitable for  such
inspection due to tides/weather/underwater visibility/not clear-sufficient
waters due to water depth, then the Sellers shall immediately make the Vessel
available at a suitable alternative place  near to the delivery port
without any extra cost from the Buyers. The Sellers to have the option for divers inspection to take place, at a place with
clear water visibility before the last discharging port, provided ample notice is given to Buyers for
preperation.

In the event the Buyers choose such diver's
inspection, same shall be carried out in the presence of the Vessel's Class surveyor (whom to be for
Sellers expense) and in the presence of the  Sellers/Buyers
representatives without interferring with the Vessel's operation. Should any
damage  be found during such inspection that will impose a recommendation
and/or condition of Class,  then:

 

a)
In case
the Class imposes a recommendation and/or condition of Class but the Vessel is
not  required to be drydocked before her next scheduled drydock, then the
Sellers shall pay the Buyers  the direct cost only (excluding drydocking costs)
to repair such damage in a way which is acceptable  by the
Class and which to be based on the average of two (2) quotations given by two
reputable  independent repair yards at port of delivery or
nearby, one at Sellers choice and one at Buyers  choice. The above amount
agreed shall be deducted from the balance of the purchase money at the  time of
delivery.

 

8

 

B) In case the Class requires the Vessel to
be drydocked before next drydocking survey, the Sellers shall
drydock the Vessel as per Clause 6 (c) of NSF 1993, which clause shall apply
excepting that tailshaft withdrawl will be done only if Class requires same to
be done, at their expense prior to delivery
of the Vessel, and repair same to Class satisfaction. Delivery date shall be
extended  pro-rata and Buyers to have the right to attend such repairs
without interfering to Sellers repairs.  Such extension will be given by Buyers for a maximum period of 60 days.

 

In any case of the above, whether damage is
found or not, the cost of the divers inspection shall be  for the Buyers account whilst the cost of the
Class society attendance shall be for Sellers account.  The Class shall at all times
be the sole arbitrator as to whether underwater damage, if any, imposes  condition/recommendation of Class. The
decision of Class as to whether underwater damage, if any, imposes a condition/recommendation of Class shall be final and
binding for both parties.

 

22) TIME CHARTER ARRANGEMENT AFTER 1ST
FEBRUARY 2005

 

In the event the Vessel is not delivered by
31st January 2005 pursuant to Buyers lifting their subject as per Clause 17B, then the Sellers will give the
Vessel on a timecharter on the following terms:

 

The Sellers will timecharter the Vessel to
the Buyers until the cancelling date 15th April 2005 at  a rate
of USD 1 per day. The Buyers will immediately charter back the Vessel to Essar
Shipping  Limited, Mumbai or its nominee, on Time Charter at
a rate of USD 29,000 per day net. However  the Sellers will have a right
to deliver the ship as per the delivery terms at any time between 1st  February
2005 to 15th April 2005. Such hire is payable 15 days in advance. Otherwise
standard TC  terms to apply. It is understood that the Charter
Party will not include an offhire clause (ie:  whatever might happen Buyers cannot be put off-hire). Also
Buyers will not be liable for any claim  (such as for pollution, disbursement accounts,
unpaid expenses of any nature).

In case Buyers fail to take delivery of the
Vessel in accordance with this agreement, the total amount paid under this charter by Sellers shall
be returned to them by Buyers immediately without  any contention and this will be guaranteed by Top Tankers Inc.,
the NASDAQ listed entity.

 

 

	
  For the Sellers

  	
   

  	
  For the Buyers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  

 

9

 

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.

 

10Exhibit 10.3

MEMORANDUM
OF AGREEMENT

 

Dated: 3rd
November 2004

	
   

  	
  Norwegian Shipbrokers' Association's Memorandum

  of Agreement for sale and purchase of 

  ships. Adopted by The Baltic and International

  Maritime Council (BIMCO) in 1956.

  Code-name

  SALEFORM 1993

  Revised 1966, 1983 and 1986/87.

  

 

ESSAR SHIPPING LIMITED, of Essar House,
Mahalaxmi, Mumbai 400 034, India hereinafter called the Sellers, have agreed to sell,
and TOP TANKERS INC., of 109-111
Messogion Ave, Politia Centre, Bldg C 1, Athens 115 26, Greece, or its
guaranteed nominee

hereinafter called the Buyers, have agreed to buy.

 

Name: M.T. Kishore

 

Classification Society/Class: DNV

 

Built:  1992                        By: Hyundai Heavy Industries Ltd, South Korea

 

Flag: Indian                    Place of Registration: Mumbai

 

Call Sign: ATMC                    Grt/Nrt: 79,718/ 46,569

 

IMO Number: 9000572

 

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, and India.

 

"In writing" or "written" means a letter handed
over from the Sellers to the Buyers or vice versa, a registered letter, telex,
telefax or other modern form of written communication.

 

"Classification Society" or "Class" means the
Society referred to in line 4.

 

1.                                       Purchase Price US $ 51,650,000 (United States Dollars Fifty One
Million Six Hundred and Fifty Thousand only) Cash

 

2.             Deposit

 

A) Non-refundable Deposit

Buyers are to place the amount of USD
500,000 promptly upon lifting of Sellers BOD approval as deposit in a joint
account (account details to be advised) between the Sellers and the Buyers.
Buyers to give proof of transmission of deposit within 24 hours upon Sellers
lifting their BOD approval. This proof to come directly from the Buyers bank to
Sellers bank. Non-payment of the deposit under this Clause will constitute a
default and Sellers will have full recourse to Top Tankers Inc. for the amount.

 

This amount will be a non-refundable
deposit in the event the Buyers do not lift their "subject" for MT
Kishore (the "Vessel) as per Clause 17. In such a case the deposit
will be released to the Sellers. In the event the Buyers exercise the option to
buy the Vessel as per Clause 17B, then the amount of USD 500,000 will
be adjusted towards the 10% Deposit as per Clause 2B. In no event will
more than USD 500,000 of such non-refundable deposit be adjusted towards the
purchase of this Vessel.

 

B) Ten Percent (10%) 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 three (3)                                  banking days from
the date of the Buyers lifting
their subject in Clause 17 of this Agreement. This deposit
shall be placed with Sellers nominated bank in London and held by them in a
joint interest bearing
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 by the bank for holding the said deposit and closing shall be
borne equally by the Sellers and the Buyers.

 

3.             Payment

 

The said Purchase Price along with extra payment for bunkers/luboils etc. shall
be paid in full free of bank charges to Sellers nominated account

 

at closing on delivery of the Vessel and in exchange for the usual/normal
sale documents as mutually agreed, but not later than 3 banking
days after the Vessel is in every respect physically ready for delivery in
accordance with the terms and conditions of this Agreement and Notice of
Readiness has been given in accordance with Clause 5.

 

4.             Inspections

 

a)*                               The Buyers have inspected and accepted
the Vessel's classification records. The Buyer have also inspected the Vessel
at Dalian                                 on October 2004 and have
accepted the Vessel following this inspection and the sale is outright and
definite, subject only to the terms and conditions of this Agreement.

 

5.             Notices,
time and place of delivery

 

a)                                      The Sellers shall keep the Buyers well
informed of the Vessel's itinerary and shall provide the Buyers with 15,10, 7,5 days approximate notice,
and 3,1 days definite notice of
the estimated time of arrival at the intended place 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. Notices to be sent by email or fax via brokers.

 

b)                                     The Vessel shall be delivered and taken
over charter-free, free of cargo, free of
stowaways, safely afloat at a one safe and freely accessible berth, port or anchorage Worldwide range, but excluding
ice-bound areas and war-risks areas (not permitted by Lloyds underwriters even
upon payment of AWRP) 

                                                In the Sellers' option.

 

Expected time of delivery: 1st January 2005 - 15th April 2005 (both days inclusive) in
Sellers option.

 

Date of cancelling (see Clauses 5 c),
6 b) (iii), and 14): 15th April 2005 in 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 2 working days of receipt of the notice or of accepting
the new date as the new cancelling date. If the Buyers have not declared their
option within 2 working
days of receipt of the Sellers' notification or if the Buyers accept the new
date, the date proposed in the Sellers' notification shall be deemed to be the
new cancelling date and shall be substituted for the cancelling date stipulated
in line 61.

 

If this Agreement is maintained with the new
cancelling date all other terms and conditions hereof including those contained
in Clauses 5 a) and 5 c) shall remain unaltered and in full force and
effect. Buyers and Sellers
will not have the right for any claims due to the fact that Vessel missed her
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 See
Clause 21

 

*              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.

 

7.             Spares/bunkers,
etc.

 

The Sellers shall deliver the Vessel to the Buyers with everything belonging
to her on board, on order and
on shore. All spare parts and spare equipment, if any, belonging to the Vessel
at the time of inspection used or unused, whether on board or not shall become
the Buyers' property. Forwarding charges, if any, shall be for the Buyers'
account. The Sellers are not required to replace spare parts which are taken
out of spare and used as replacement prior to delivery, but the replaced items
shall be the property of the Buyers. The radio installation, wireless and
navigational equipment, loading instrument (loadicator) and GMDSS, PC's and Printers
shall be included in the sale without extra payment. Unused/used 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 slop chest are to be excluded from the sale, as well as the
following additional items (including items on hire):

 

- VIDEOTEL LIBRARY

- OXYGEN, ACETYLENE & FREON CYLINDERS

 

The Buyers shall take over and pay extra for the remaining bunkers on board and unused/unbroached lubricating
oils in storage tanks and sealed drums. Bunkers to be paid for at Sellers last net contract price at Vessel’s
last supply which to be evidenced by relevant invoices/vouchers, excluding
barging expense. Luboils to be paid for at Sellers net contract prices (less
Sellers discounts/rebates) at Vessel’s last supply which to be evidenced by
relevant invoices/vouchers.

 

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/payment: London

 

In exchange for payment of the Purchase Price and delivery of the Vessel, the Buyers and Sellers
shall provide each other
with their respective
delivery documents. Buyers and Sellers
shall mutually advise their requirements and the same to be incorporated as an
Addendum to this Agreement. Signing of such Addendum shall by no means delay
signature of this Agreement by both parties. However the list of delivery
documents required by Buyers/Sellers to be advised within 7 days of signing
this Agreement by fax.

 

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 on board the
classification certificate(s), a set of manuals/drawings relative to the main engine/auxillaries in
addition to all other existing manuals/instruction books as well
as all

 

 

plans and technical records etc.,
which are on board the Vessel or in their possession. Other certificates which are on
board the Vessell 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 which may be in the Sellers’ possession shall
be promptly forwarded to the Buyers at their expense, 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 substantially in the same condition
as she was at the time of inspection, fair wear and tear excepted.

 

However, the Vessel shall be delivered with her present class maintained with all continuous surveys valid and upto date,
free from any condition
of Class
/recommendation*, free of average damage affecting the Vessel’s class, and with
her classification certificates and national/international trading certificates, clean, valid and
unextended without condition/recommendation* by Class or the relevant
authorities at the time of delivery.

 

“Inspection” in this Clause 11, shall mean the Buyers’ inspection
according to Clause 4 a)

 

*              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 or new cancelling date as per Clause 5c 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 or new cancelling date as per Clause 5c 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 under Clause 2A and 2B together
with interest earned shall be released to them immediately: Buyers and Sellers will not have the
right for any claims due to the fact that Vessel missed her Cancelling date

 

15.           Buyers’ representatives

 

After this Agreement has been signed by both parties and the 10% deposit under Clause 2B has
been lodged, the Buyers have the right to place two representatives on board
the Vessel for a maximum period
of thirty (30) days at their sole risk and expense, who will remain on board until
delivery. These representatives are on board for the purpose of
familiarisation and in the capacity of observers only, and they shall not
interfere in any respect with the manning/operation of the Vessel. The Buyers’
representatives shall sign the Sellers’ letter of indemnity prior to their
embarkation.

 

16.           Arbitration

 

a)*          This Agreement shall be governed by
and construed in accordance with English law and any dispute arising out of
this Agreement shall be referred to arbitration in London in accordance with
the Arbitration Acts 1950 and 1979 or any statutory modification or
re-enactment thereof for the time being in force, one arbitrator being
appointed by each party. On the receipt by one party of the nomination in
writing of the other party’s arbitrator, that party shall appoint their
arbitrator within fourteen days, failing which the decision of the single
arbitrator appointed shall apply. If two arbitrators properly appointed shall
not agree they shall appoint an umpire whose decision shall be final. Arbitrators to be members of London
Maritime Arbitrators Association.

 

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

 

CLAUSES 17 - 22 MAKE AN INTEGRAL PART OF THIS AGREEMENT.

 

17) BUYERS SUBJECTS & OPTION FOR
VESSELS

 

A) This Agreement is part of an agreement
reached between Buyers and Sellers for enbloc sale of five (5) vessels, namely,
MT Kamlesh, MT Shravan, MT Kishore, MT Nandu and MT Chanda, and this sale is
SUBJECT to “FOLLOW ON OFFERING” BY MSSRS TOP TANKERS INC. This

 

 

‘Subject’ is to be lifted latest by 25th
November 2004, close of business, New York, USA

 

B) At the time of lifting Buyers ‘subject’
under sub-clause (a) above, Buyers to declare the number of vessels to be
purchased, which in any case will be minimum one (1). In the event that the
number of vessels to be purchased is less than five (5), then the order of
purchase of the vessels by the buyers will be in the following sequence:

 

- If 1 vessel to be purchased by the Buyers
it will be MT Kamlesh

- If 2 vessels to be purchased by the
Buyers it will be MT Kamlesh, and MT Shravan

- If 3 vessels to be purchased by the
Buyers it will be MT Kamlesh, MT Shravan, and MT Kishore

- If 4 vessels to be purchased by the
Buyers it will be MT Kamlesh, MT Shravan, MT Kishore and MT Nandu

 

18) SELLERS SUBJECT

 

Sellers’ Board Approval has been lifted and
conveyed to Buyers through Brokers via fax dated 3rd November 2004 at 1500
hours Indian time.

 

19) P & C

 

The Price, terms and conditions of the sale
are to be kept strictly private and confidential by all parties concerned.
However, should the details of the sale become known or reported in the market,
neither the Buyers nor the Sellers shall have the right to cancel this
Agreement. Except that certain terms and conditions of this transaction will be
publicly disclosed and disseminated as required by S.E.C., NASDAQ, BSE and SEBI
rules and regulations.

 

20) NO BLACKLIST

 

Sellers to confirm in writing that to the
best of their knowledge, the Vessel is not blacklisted by any state or
organisation such as the ITF or by the Arab Boycott League.

 

21) DRYDOCKING

 

No pre-delivery drydocking clause to apply.
However the Buyers have the right to inspect the Vessel’s underwater parts by a
diver approved by Class, which shall be arranged by Buyers at Buyers expense
prior delivery. If the conditions at the place of underwater survey are
unsuitable for such inspection due to tides/weather/underwater visibility/not
clear-sufficient waters due to water depth, then the Sellers shall immediately
make the Vessel available at a suitable alternative place near to the delivery
port without any extra cost from the Buyers. The Sellers to have the option for
divers inspection to take place, at a place with clear water visibility before
the last discharging port, provided ample notice is given to Buyers for
preperation.

 

In the event the Buyers choose such diver’s
inspection, same shall be carried out in the presence of the Vessel’s Class
surveyor (whom to be for Sellers expense) and in the presence of the
Sellers/Buyers representatives without interfering with the Vessel’s operation.
Should any damage be found during such inspection that will impose a
recommendation and/or condition of Class, then:

 

a) In case the Class imposes a
recommendation and/or condition of Class but the Vessel is not required to be
drydocked before her next scheduled drydock, then the Sellers shall pay the
Buyers the direct cost only (excluding drydocking costs) to repair such damage
in a way which is acceptable by the Class and which to be based on the average
of two (2) quotations given by two reputable independent repair yards at port
of delivery or nearby, one at Sellers choice and one at Buyers cloice. The
above amount agreed shall be deducted from the balance of the purchase money at
the time of delivery.

 

B) In case the Class requires the Vessel to
be drydocked before next drydocking survey, the Sellers shall drydock the
Vessel as per Clause 6 (c) of NSF 1993, which clause shall apply excepting that
tailshaft withdrawl will be done only if Class requires same to be done, at
their expense prior to delivery of the Vessel, and repair same to Class
satisfaction. Delivery date shall be extended

 

 

pro-rata and Buyers to have the right to
attend such repairs without interfering to Sellers repairs. Such extension will
be given by Buyers for a maximum period of 60 days.

 

In any case of the above, whether damage is
found or not, the cost of the divers inspection shall be for the Buyers account
whilst the cost of the Class society attendance shall be for Sellers account.
The Class shall at all times be the sole arbitrator as to whether underwater
damage, if any, imposes condition/recommendation of Class. The decision of
Class as to whether underwater damage, if any, imposes a
condition/recommendation of Class shall be final and binding for both parties.

 

22) TIME CHARTER ARRANGEMENT AFTER 1ST
FEBRUARY 2005

 

In the event the Vessel is not delivered by
31st January 2005 pursuant to Buyers lifting their subject as per Clause 17B,
then the Sellers will give the Vessel on a timecharter on the following terms:

 

The Sellers will timecharter the Vessel to the Buyers until
the canceling date 15th April 2005 at a rate of USD 1 per day. The Buyers will
immediately charter back the Vessel to Essar Shipping Limited, Mumbai or its
nominee, on Time Charter at a rate of USD 29,000 per day net. However the
Sellers will have a right to deliver the ship as per the delivery terms at any
time between 1st February 2005 to 15th April 2005. Such hire is payable 15 days
in advance. Otherwise standard TC terms to apply. It is understood that the
Charter Party will not include an offhire clause (ie: whatever might happen
Buyers cannot be put off-hire). Also Buyers will not be liable for any claim
(such as for pollution, disbursement accounts, unpaid expenses of any nature).

 

In case Buyers fail to take delivery of the
Vessel in accordance with this agreement, the total amount paid under this
charter by Sellers shall be returned to them by Buyers immediately without any
contention and this will be guaranteed by Top Tankers Inc., the NASDAQ listed
entity.

 

	
  For the Sellers

  	
   

  	
  For the Buyers

  
	
   

  	
   

  	
   

  
	
  /s/ Rajeev Nayyer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RAJEEV NAYYER

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  

 

 

 

 

 

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.

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