Document:

Exhibit 4.10
	
	

	
	 1 STATEMENT OF DESIGNATION OF THE RIGHTS, PREFERENCES AND PRIVILEGES OF THE 7.0% SERIES D CUMULATIVE CONVERTIBLE PERPETUAL PREFERRED STOCK OF OCEANPAL INC. OCEANPAL INC., a Company organized and existing under the Business Corporations Act (the “BCA”) of the Republic of the Marshall Islands (the “Company”), in accordance with the provisions of Section 35 thereof and the Company’s Amended and Restated Articles of Incorporation, does hereby certify:  The Board of Directors of the Company has adopted the following resolution creating a series of Preferred Stock (this and other capitalized terms shall have the same meaning as in the Company’s Amended and Restated Articles of Incorporation, unless otherwise specified in this Statement of Designation or unless the context otherwise requires) of the Company designated as “7.0% Series D Cumulative Convertible Perpetual Preferred Stock.”
 RESOLVED, that a series of Preferred Stock, par value $0.01 per share, of the Company be and hereby is created, and that the designation and number of shares of such series, and the voting and other powers, preferences and relative, participating, optional or special rights and qualifications, limitations and restrictions thereof, of the shares of such series, are as follows:
Section 1. Designation. The distinctive designation of such series of Preferred Stock is “7.0% Series D Cumulative Convertible Perpetual Preferred Stock” (“Series D Preferred Shares”), par value $0.01 per share. Each Series D Preferred Share shall be identical in all respects to every other Series D Preferred Share, except as to the respective dates from which dividends may begin accruing, to the extent such dates may differ. The Series D Preferred Shares represents perpetual equity interests in the Company and shall not give rise to a claim for payment of a principal amount at a particular date. Section 2. Shares. (a)  Number. The authorized number of Series D Preferred Shares shall initially be 25,000, which number the Board of Directors of the Company may, from
time to time, increase or decrease (but not below the number then-outstanding). Series D Preferred Shares that are repurchased or otherwise
acquired by the Company shall be cancelled and shall revert to authorized but unissued Preferred Stock, undesignated as to series. Section 3. Dividends. (a) Dividends. Dividends on each Series D Preferred Share shall be cumulative and shall accrue at the Dividend Rate from the Original Issue Date (or, for
any subsequently issued and newly outstanding stock, from the Dividend Payment Date immediately preceding the issuance date of such stock) until such time as the Company pays the dividend or redeems the stock in full in accordance with Section 6 below, whether or not such dividends shall have

	
	 2 been declared, and whether or not there are profits, surplus, or other funds legally available for the payment of dividends. Holders of Series D Preferred Shares shall be entitled to receive dividends from time to time out of any assets of the Company legally available for the payment of dividends at the Dividend Rate per share, when, as, and if declared by the Board of Directors.
Dividends, to the extent declared to be paid by the Company in accordance with this Statement of Designation, shall be paid quarterly on each Dividend Payment Date. Dividends shall accumulate in each Dividend Period from and including the preceding Dividend Payment Date or the initial issue date, as the case may be, to but excluding the applicable next Dividend Payment Date for such Dividend Period.  If any Dividend Payment Date otherwise would fall on a day that is not a Business Day, declared dividends shall be paid on
the immediately succeeding Business Day without the accumulation of additional dividends. Dividends on the Series D Preferred Shares shall be payable based on a 360-day year consisting of twelve 30-day months. The Dividend Rate is not subject to adjustment. Holders of Series D Preferred Shares shall receive preferential cumulative quarterly dividends payable in cash or, at the election of the Company, in PIK Shares, on each Dividend Payment Date, commencing on the first Dividend Payment Date after the first issuance of a Series D Preferred Share,
in either a cash amount per share equal to the product of the Liquidation
Preference and the Dividend Rate (the “Dividend Amount”) or, at the election of the Company, in an amount of PIK Shares for each outstanding
Series D Preferred Share equal to the Dividend Amount divided by the Original Issue Price (the “PIK Share Amount”). The Series A Preferred Stock and the Series B Preferred Stock shall be junior to the Series D
Preferred Shares with respect to all dividends. (b) Payment and Priorities of Dividends. Not later than 5:00 p.m., New York City time, on each Dividend Payment Date, the Company shall pay those dividends, if any, on the Series D Preferred Shares that shall have been declared by the Board of Directors to the Holders of record of such shares as such Holders’ names appear on the stock transfer books of the Company
maintained by the Registrar and Transfer Agent on the applicable record date (the “Record Date”), being the Business Day immediately preceding the applicable Dividend Payment Date, except that in the case of payments of dividends in arrears, the Record Date with respect to a Dividend Payment Date shall be such date as may be designated by the Board of Directors in
accordance with the Company’s Bylaws and this Statement of Designation. No dividend shall be declared or paid or set apart for payment on any Junior
Stock (other than a dividend payable solely in shares of Junior Stock) unless full cumulative dividends have been or contemporaneously are being paid or provided for on all outstanding Series D Preferred Shares and any Parity
Stock for all prior and the then-ending Dividend Periods.  In the event that full cumulative dividends on the Series D Preferred Shares and any Parity Stock shall not have been paid or declared and set apart for payment, the Company shall not be permitted to repurchase, redeem or otherwise acquire, in whole or in part, any Series D Preferred Shares or Parity Stock except pursuant to a purchase or exchange offer made on the

	
	 3 same terms to all holders of Series D Preferred Shares and any Parity Stock. The Company shall not be permitted to redeem, repurchase or otherwise acquire any Common Stock or any other Junior Stock unless full cumulative dividends on the Series D Preferred Shares and any Parity Stock for all prior and the then-ending Dividend Periods shall have been paid or declared and set apart for payment. Accumulated dividends in arrears for any past Dividend Period may be declared by the Board of Directors and paid on any date fixed by the Board of Directors, whether or not a Dividend Payment Date, to Holders of the Series D Preferred Shares on the record date for such payment, which may not be more than 60 days, nor less than 5 days, before such payment date. Subject to the next succeeding sentence, if all accumulated dividends in arrears on all outstanding Series D Preferred Shares and any Parity Stock shall not have been declared and paid, or if sufficient funds for the payment thereof shall not have been set apart, payment of accumulated dividends in arrears on the Series D Preferred Shares and any such Parity Stock shall be made in order of their respective Dividend Payment Dates, commencing with the earliest. If less than all dividends payable with respect to all Series D Preferred Shares and any Parity Stock are paid, any partial payment shall be made pro rata with respect to the Series D Preferred Shares and any Parity
Stock entitled to a dividend payment at such time in proportion to the
aggregate dividend amounts remaining due in respect of such shares at such
time. Holders of the Series D Preferred Shares shall not be entitled to any dividend, whether payable in cash, property or stock, in excess of full cumulative dividends. No interest or sum of money in lieu of interest shall be payable in respect of any dividend payment which may be in arrears on the
Series D Preferred Shares.  Dividends shall be paid by check mailed to the
registered address of the Holder, unless, in any particular case, the Company elects to pay by wire transfer. Section 4. Liquidation Rights. (a) Liquidation Event. Upon the occurrence of any Liquidation Event, Holders of Series D Preferred Shares shall be entitled to receive out of the assets of the Company or proceeds thereof legally available for distribution to stockholders of the Company, (i) after satisfaction of all liabilities, if any, to creditors of the Company, (ii) after all applicable distributions of such assets or proceeds being made to or set aside for the holders of any Senior Stock then outstanding in respect of such Liquidation Event, (iii) concurrently with any applicable distributions of such assets or proceeds being made to or set aside for holders of any Parity Stock then outstanding in respect of such
Liquidation Event and (iv) before any distribution of such assets or proceeds is made to or set aside for the holders of Common Stock and any other classes or series of Junior Stock as to such distribution, a liquidating
distribution or payment in full redemption of such Series D Preferred Shares
in an amount initially equal to $1,000.00 per share in cash, plus an amount equal to accumulated and unpaid dividends thereon to the date fixed for payment of such amount (whether or not declared) (the “Liquidation Preference”). For purposes of clarity, upon the occurrence of any Liquidation Event, (x) the holders of then outstanding Senior Stock shall be

	
	 4 entitled to receive the applicable liquidation preference on such Senior Stock before any distribution shall be made to the Holders of the Series D Preferred Shares or any Parity Stock and (y) the Holders of outstanding Series D Preferred Shares shall be entitled to the Liquidation Preference per share in cash concurrently with any distribution made to the holders of Parity Stock and before any distribution shall be made to the holders of Common Stock or
any other Junior Stock. Holders of Series D Preferred Shares shall not be
entitled to any other amounts from the Company, in their capacity as Holders of such stock, after they have received the Liquidation Preference. The payment of the Liquidation Preference shall be a payment in redemption of
the Series D Preferred Shares such that, from and after payment of the full Liquidation Preference, any such Series D Preferred Shares shall thereafter
be cancelled and no longer be outstanding. (b) Partial Payment. In the event that the distribution or payment described in Section 4(a) above where the Company’s assets available for distribution to holders of the outstanding Series D Preferred Shares and any Parity Stock are
insufficient to permit payment of all required amounts, the Company’s then
remaining assets or proceeds thereof legally available for distribution to stockholders of the Company shall be distributed among the Series D Preferred Shares and any Parity Stock, as applicable, ratably on the basis of their relative aggregate liquidation preferences. To the extent that the Holders of Series D Preferred Shares receive a partial payment of their Liquidation
Preference, such partial payment shall reduce the Liquidation Preference of
their Series D Preferred Shares, but only to the extent of such amount paid. (c) Residual Distributions. After payment of all required amounts to the Holders of the outstanding Series D Preferred Shares and any Parity Stock, the
Company’s remaining assets and funds shall be distributed among the
holders of the Common Stock and any other Junior Stock then outstanding according to their respective rights. Section 5. Voting Rights. (a) General. The Series D Preferred Shares shall have no voting rights except as set forth in this Section 5 or as otherwise provided by Marshall Islands law. (b)  Other Voting Rights (1) Unless the Company shall have received the affirmative vote or consents of the Holders of at least two-thirds of the outstanding Series D Preferred Shares, voting as a single class, the Company may not adopt any amendment to the Articles of Incorporation that adversely alters the preferences, powers or rights of the Series D Preferred Shares. (2) Unless the Company shall have received the affirmative vote or consent of the Holders of at least two-thirds of the outstanding Series D Preferred Shares, voting as a class together with holders of any other Parity Stock upon which like voting rights have been conferred and are exercisable, the Company may not (x) issue any Parity Stock if the cumulative

	
	 5 dividends payable on outstanding Series D Preferred Shares are in arrears or (y) create or issue any Senior Stock. (c) Voting Power. For any matter described in this Section 5 in which the Holders of the Series D Preferred Shares are entitled to vote as a class, such
Holders shall be entitled to one vote in respect of each $1,000.00 in liquidation preference held by them. Any Series D Preferred Shares held by the Company or any of its subsidiaries or Affiliates shall not be entitled to vote. (d) No Vote or Consent in Other Cases. No vote or consent of Holders of Series D Preferred Shares shall be required for (i) the creation or incurrence of any
indebtedness, (ii) the authorization or issuance of any Common Stock or
other Junior Stock or (iii) except as expressly provided in paragraph (b)(2) above, the authorization or issuance of any Preferred Stock of the Company. Section 6. Rank. The Series D Preferred Shares shall be deemed to rank with respect to dividend distributions and distributions upon a Liquidation Event: (a) Seniority. Senior to (i) all classes of Common Stock, (ii) any Series A Participating Preferred Stock and any Series B Preferred Stock and (iii) any other class or series of capital stock established after the Original Issue Date, the terms of which expressly provide that it is made junior to the Series D Preferred Shares or any Parity Stock as to the payment of dividends and amounts payable upon any Liquidation Event (collectively referred to with the Company’s Common Stock as “Junior Stock”); (b) Parity. Equal with (i) the Series C Preferred Stock, and (ii) any class or series of capital stock established after the Original Issue Date, the terms of which are not expressly subordinated or senior to the Series D Preferred Shares as to the payment of dividends and amounts payable upon any Liquidation Event (referred to as “Parity Stock”); and (c) Junior. Junior to any class or series of capital stock established after the Original Issue Date, the terms of which expressly provide that it ranks senior to the Series D Preferred Shares as to the payment of dividends and amounts payable upon any Liquidation Event (referred to as “Senior Stock”), and to all of our indebtedness and other liabilities, including trade payables. The Company may issue additional Common Stock, additional Series D Preferred Shares and Junior Stock and, subject to Section 5(b)(2) of this Statement of Designation, Parity Stock or Senior Stock from time to time in one or more series without the consent of the holders of the Series D Preferred Shares. The Board of Directors has the authority to determine the preferences, powers, qualifications, limitations, restrictions and special or relative rights or privileges, if any, of any such series before the issuance of any shares of such series. The Board of Directors shall also determine the number of shares constituting each series of securities. Section 7. Definitions. As used herein with respect to the Series D Preferred Shares: “Affiliate” means, in regard to a specified Person, a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control

	
	 6 with, the Person specified. As used in this definition, “control” (including the terms controlling, controlled by and under common control with) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise. “Articles of Incorporation” means the amended and restated articles of incorporation of the Company, as they may be amended from time to time in a manner consistent with this Statement of Designation, and shall include this Statement of Designation “BCA” has the meaning set forth in the introductory paragraph of this Statement of Designation “Board of Directors” means the board of directors of the Company or, to the extent permitted by the Articles of Incorporation and the BCA, any authorized committee thereof. “Business Day” means any day that is not a Saturday or Sunday or a day on which banks in New York City are authorized or required by law to close.  “Bylaws” means the bylaws of the Company, as they may be amended from time to time. “Common Stock” means the common stock of the Company, par value $0.01 per share, and any other outstanding class of common stock of the Company. “Conversion Price” means the 10-Trading Day trailing VWAP of the Common Stock, subject to adjustment as contemplated in Section 10(b) hereof. “Company” has the meaning set forth in the introductory paragraph of this Statement of Designation. “Dividend Payment Date” means each January 15, April 15, July 15 and October 15 of each year, commencing January 15, 2022. “Dividend Period” means a period of time commencing on and including a Dividend Payment Date (other than the initial Dividend Period, which shall commence on and include the Original Issue Date) and ending on and including the calendar day next preceding the next Dividend Payment Date. “Dividend Rate” means a rate equal to 7.0% per annum of the Liquidation Preference per Series D Preferred Share. “Effective Price” of shares of Common Stock shall mean the quotient determined by dividing the total number of shares of Common Stock issued or sold, or deemed to have been issued or sold by the Company under Section 10(b)(iii) hereof, into the Aggregate Consideration received, or deemed to have been received by the Company for such issue under Section 10(b)(iii) hereof, for such shares of Common Stock. In the event that the number of shares of Common Stock or the Effective Price cannot be ascertained at the time of issuance, such shares of Common Stock shall be deemed issued immediately upon the occurrence of the first event that makes such number of shares or the Effective Price, as applicable, ascertainable. “Excluded Shares” means any shares of Common Stock issued or issuable by the Company: (A) to directors, officers, employees and consultants under any stock incentive plan or similar

	
	 7 plan or arrangement approved by the Board of Directors; (B) in respect of a conversion of the Series D Preferred Shares in accordance herewith; (C) pursuant to a stock split, stock dividend, reorganization or recapitalization applicable to all of the shares of Common Stock of the Company; or (D) pursuant to a transaction that the Initial Holder agrees shall be deemed to be an issuance of Excluded Shares. “Fair Market Value” means the 30-Trading Day trailing VWAP of the Common Stock (as adjusted to take into account any offering expenses, such as underwriting discounts and expenses (but not including discounts to the VWAP), that are customary for the type of offering being conducted by the Company) “Fundamental Change” means the occurrence of a liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary, or a sale of all or substantially all
of the assets, property or business of the Company individually or in a series of transactions, or a change of control of the Company. “Holder” means the Person in whose name the Series D Preferred Shares is registered on the stock register of the Company maintained by the Registrar and Transfer Agent. “Initial Holder” means Diana Shipping Inc. and/or its Affiliates.
“Junior Stock” has the meaning set forth in Section 6(a) of this Statement of Designation. “Liquidation Event” means the occurrence of a liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary, or a sale of all or substantially all of the assets, property or business of the Company individually or in a series of transactions, or a
change of control of the Company. A consolidation or merger of the Company with or into any other Person, individually or in a series of transactions, shall not be deemed a Liquidation Event. “Liquidation Preference” has the meaning set forth in Section 4(a) of this Statement of Designation. “Officer’s Certificate” means a certificate signed by the Company’s Chief Executive Officer or the Chief Financial Officer or another duly authorized officer. “Original Issue Date” means the first date on which the first Series D Preferred Share is issued and outstanding. “Original Issue Price” means $1,000.00 per share for each Series D Preferred Share (as adjusted for any stock dividends, stock splits, combinations, recapitalizations, reclassifications or other similar events with respect to the Series D Preferred Shares). “Parity Stock” has the meaning set forth in Section 6(b) of this Statement of Designation. “Paying Agent” means Computershare Inc., acting in its capacity as paying agent for the Series D Preferred Shares, and its respective successors and assigns or any other payment agent appointed by the Company. “Person” means a legal person, including any individual, Company, estate, partnership, joint venture, association, joint-stock company, limited liability company, trust or entity.

	
	 8 “PIK Share Amount” has the meaning set forth in Section 3(a) of this Statement of Designation. “PIK Shares” shall mean Series D Preferred Shares issued to Holders in lieu of cash dividends in accordance with this Statement of Designation. “Preferred Stock” means any of the Company’s capital stock, however designated, which entitles the holder thereof to a preference with respect to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs, over shares of the Common Stock. “Record Date” has the meaning set forth in Section 3(b) of this Statement of Designation. “Registrar” means Computershare Inc., acting in its capacity as registrar for the Series D Preferred Shares, and its successors and assigns or any other registrar appointed by the Company “Preferred Shares” means any of the Company’s preferred stock, par value $0.01 per share, however designated, which entitles the holder thereof to one or more preferences over shares of the Company’s Common Stock. “Senior Stock” has the meaning set forth in Section 7(c) of this Statement of Designation “Series A Participating Preferred Stock” means the Company’s Series A Participating Preferred Stock as provided for in the Company’s Stockholders Rights Agreement. “Series D Preferred Shares” has the meaning set forth in Section 1 of this Statement of Designation. “Statement of Designation” means this Statement of Designation relating to the Series D Preferred Shares, as it may be amended from time to time in a manner consistent with this Statement of Designation, the Articles of Incorporation and the BCA “Trading Day” means any day on which the Common Stock is traded on the principal securities exchange or securities market on which the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) “Transfer Agent” means Computershare Inc., acting in its capacity as transfer agent for the Series D Preferred Shares, and its respective successors and assigns or any other transfer agent appointed by the Company. “VWAP” means volume-weighted average price of the Common Stock. For all purposes relevant to this Statement of Designation: the terms defined in the singular have a comparable meaning when used in the plural and vice versa; whenever the words “include,” “includes,” or “including” are used, they are deemed followed by the words “without limitation;” all references to number of shares, amounts per share, prices, and the like shall be subject to appropriate adjustment for stock splits, stock combinations, stock dividends and similar

	
	 9 events; and, except as otherwise set forth in this Statement of Designation, if any event under this Statement of Designation occurs on a day that is not a Business Day, such event shall be deemed to occur on the first Business Day after such date. Section 8. Fractional Shares. No Series D Preferred Shares may be issued in fractions of a share. Section 9. No Mandatory Redemption or Sinking Fund. The Series D Preferred Shares shall not be subject to mandatory redemption and shall not have the benefit of any sinking fund. Section 10. Conversion. The Series D Preferred Shares shall not be convertible into Common Stock or other of the Company’s securities and shall not have exchange rights or be entitled or subject to any preemptive or similar rights, except as provided in this Section 10. (a) Optional Conversion. Each Holder of Series D Preferred Shares may elect to convert its Series D Preferred Shares, in whole or in part, into shares of Common Stock at any time at the Conversion Price then in effect; provided, however, that except in the case of a Fundamental Change, the Holder may not convert its Series D Preferred Shares into shares of Common Stock if, after giving effect to such attempted conversion, the Holder would beneficially own greater than 49.0% of the outstanding shares of Common Stock. For purposes of this Section 10(a), “beneficial ownership” shall be determined in accordance with Section 13 of the Securities Exchange Act of 1934, as amended. (b) Adjustment of Conversion Price as Result of Certain Corporate Actions. The Conversion Price in effect at any time shall be adjusted as follows: (i) If the Company shall, at any time or from time to time, effect a subdivision or split of the outstanding Common Stock, the Conversion Price in effect immediately before such subdivision or split shall be proportionately decreased and, conversely, if the Company shall, at any time or from time to time, effect a combination of the outstanding Common Stock, the Conversion Price in effect immediately before such combination shall be proportionately increased. Any adjustment under this Section 10(b)(i) shall become effective at the close of business on the date of the applicable subdivision, split or combination. (ii) In the event that the Company shall, at any time or from time to time, make or issue to all holders of shares of Common Stock, a dividend or other distribution payable in shares of Common Stock, then the Conversion Price in effect shall be decreased as of the time of such issuance in accordance with the following formula:     O    C1 = C x ----------------    O + N
    where: C1 = The adjusted Conversion Price.
C = The current Conversion Price.

	
	 10 O = The number of shares of Common Stock outstanding immediately prior to the applicable issuance.
N = The number of additional shares of Common Stock issued in payment of such dividend or distribution.
 (iii) In the event that the Company shall, at any time or from time to time, offer shares of Common Stock (other than Excluded Shares) in a non-public offering (or in a public offering in which more than 50% of such public offering is subscribed to by Affiliates of the Company) in which the Common Stock is sold at a price less than Fair Market Value, then the Conversion Price shall be reduced (but not increased) to an amount determined by multiplying the Conversion Price by a fraction (x) the numerator of which shall be (A) the number of shares of
Common Stock deemed outstanding (as determined in the following sentence) immediately prior to such issue or sale, plus (B) the number of shares of Common Stock which the Aggregate Consideration received or deemed received by the Company for the total number of additional shares of Common Stock so issued would purchase at such then-existing Conversion Price, and (y) the denominator of which shall be the number of shares of Common Stock deemed outstanding (as determined in the following sentence) immediately prior to such issue or sale plus the total number of additional shares of Common Stock so issued.  For the purposes of the preceding sentence, the number of shares of Common Stock deemed to be outstanding as of a given date shall be the sum of (I) the number of shares of Common Stock outstanding, (II) the number of shares of Common Stock into which the then-outstanding Series D Preferred Shares could be converted if fully converted on the day immediately preceding the given date, and (III) the number of shares of Common Stock which are issuable upon the exercise or conversion of all
other rights, options and Convertible Securities outstanding on the day immediately preceding the given date. In addition, any issuance of additional Series D Preferred Shares shall not cause an adjustment of the Conversion Price under this Section 10(b)(iii). An adjustment made pursuant to this Section 10(b)(iii) shall be made on the next Business Day following the date on which any such issuance or sale is made and shall be effective retroactively to the close of business on the date of such issuance or sale. For the purpose of making any adjustment required under this Section 10(b)(iii), the aggregate consideration received by the Company for any issue or sale of securities
(the “Aggregate Consideration”) shall be computed as: (A) to the extent it consists of cash, the gross amount of cash received by the Company before deduction of any underwriting or similar commissions, compensation or concessions paid or allowed by the Company in connection with such issue or sale and without deduction of any expenses payable by the Company, (B) to the extent it consists of property other than cash, the fair value of that property as determined in good faith by the Board of Directors; provided, however, that to the extent the Board of Directors
determines the fair value of property other than cash is equal to or exceeds $1,000,000, then the Company shall have such property appraised by a qualified independent appraiser, whose valuation shall conclusively determine the value, and (C) if shares of Common Stock, Convertible Securities or rights or options to purchase either shares of Common Stock or Convertible Securities are issued or sold together with other stock or securities or other assets of the Company for a consideration which covers both, the portion of the consideration so received that may be reasonably determined in good faith by the Board of Directors to be allocable to such shares of Common Stock, Convertible Securities or rights or options.

	
	 11 For the purpose of the adjustment required under this Section 7(c)(iii), if the Company issues or sells (x) Preferred Shares or other stock, options, warrants, purchase rights or other securities convertible into, shares of Common Stock other than Excluded Shares (such convertible stock or securities being herein referred to as “Convertible Securities”) or (y) rights or options for the purchase of shares of Common Stock or Convertible Securities (other than Excluded Shares) and if the Effective Price of such shares of Common Stock is less than the
Conversion Price, the Company shall be deemed to have issued at the time of the issuance of such rights or options or Convertible Securities the maximum number of shares of Common Stock issuable upon exercise or conversion thereof and to have received as consideration for the issuance of such shares an amount equal to the total amount of the consideration, if any, received by the Company for the issuance of such rights or options or Convertible Securities plus: (A) in the case of such rights or options, the minimum amounts of consideration, if any, payable to the
Company upon the exercise of such rights or options; and (B) in the case of Convertible Securities, the minimum amounts of consideration, if any, payable to the Company upon the conversion thereof (other than by cancellation of liabilities or obligations evidenced by such Convertible Securities); provided that if the minimum amounts of such consideration cannot be ascertained, but are a function of anti-dilution or similar protective clauses, the Company shall be deemed to have received the minimum amounts of consideration without reference to such clauses. If the minimum amount of consideration payable to the Company upon the exercise or conversion of rights, options or Convertible Securities is reduced over time or on the occurrence or non-occurrence of specified events other than by reason of anti-dilution adjustments, the Effective Price shall be recalculated using the figure to which such minimum amount of consideration is reduced; provided further, that if the minimum amount of consideration payable to the Company upon the exercise or conversion of such rights, options or Convertible Securities is subsequently increased, the Effective Price shall be again recalculated using the increased minimum amount of consideration payable to the Company upon the exercise or conversion of such rights, options or Convertible Securities. If any option or warrant expires or is cancelled without having been exercised, then, for the purposes of the adjustments set forth above, such option or warrant shall have been deemed not to have been issued and the Conversion Price shall be adjusted accordingly.  No holder of Common Stock which was previously issued upon conversion of Series D Preferred Shares shall have any obligation to redeem or cancel any such shares of Common Stock as a result of the operation of this paragraph. (iv) Anything herein to the contrary notwithstanding, no adjustment will be made to the Conversion Price by reason of the issuance of Common Stock upon the conversion of Series D Preferred Shares or the exercise of any such rights or options. (c) Corporate Events.  Prior to the consummation of any transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with
respect to or in exchange for shares of Common Stock, including a reclassification, exchange, substitution or reorganization (a “Corporate Event”), the Company shall make appropriate provision to ensure that each Holder will thereafter have the right to receive upon a conversion of all the Series D Preferred Shares held by such Holder, such securities and other assets (including cash) that such Holder would have been entitled to receive had such Holder converted its Series D Preferred Shares into Common Stock immediately prior to the consummation of such Corporate
Event.  The provisions of this Section 10(c) shall apply similarly and equally to successive Corporate Events.

	
	 12 (d) Mechanics of Conversion.  No fractional shares of Common Stock shall be issued upon conversion of Series D Preferred Shares.  In lieu of any fractional shares to which the Holder would otherwise be entitled, the Company shall pay cash equal to such fraction multiplied by the then Fair Market Value of such fractional shares.  Before any Holder of Series D Preferred Shares shall be entitled to convert the same into full shares of Common Stock, and to receive certificates therefor, the Holder shall surrender the certificate or certificates therefor, duly endorsed, at the office of the Company or of any Transfer Agent for the Series D Preferred Shares, and shall give written notice to the Company at such office that such Holder is converting the same; provided, however, that the Company shall not be obligated to issue certificates evidencing the shares of Common Stock issuable upon conversion unless either the certificates evidencing such Series D Preferred Shares are delivered to the Company or its Transfer Agent as provided above, or the Holder notifies the Company or its Transfer Agent that such certificates have been lost, stolen or destroyed and executes an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificates. The Company shall, as soon as practicable after such delivery, or after such agreement and indemnification, issue and deliver at such office to such Holder of Series D Preferred Shares, a certificate or certificates for the number of shares of Common Stock to which such Holder shall be entitled as aforesaid (or the applicable book-entry account shall be created and/or noted as credited with such shares of Common Stock) and a check payable to the Holder in the amount of any cash amounts payable as the result of a conversion into fractional shares of Common Stock, plus any accrued and unpaid cash dividends on the converted Series D Preferred Shares.  Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of Series D Preferred Shares to be converted, and the Person or Persons entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Common Stock on such date. (e) Reservation of Stock Issuable Upon Conversion.  The Company shall at all times after the Original Issue Date, reserve and keep available out of its authorized but unissued shares of Common Stock solely for the purpose of effecting the conversion of the shares of the Series D Preferred Shares, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all then outstanding shares of the Series D Preferred Shares; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Series D Preferred Shares, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose, including engaging in best efforts to obtain the requisite shareholder approval of any necessary amendment to this Statement of Designation or the Articles of Incorporation. (f) Treasury Stock.  The number of shares of Common Stock outstanding at any given time shall not include shares owned or held, directly or indirectly, by or for the account of the Company.  The disposition of such shares of Common Stock shall be deemed a sale for the purpose of Section 10(b)(iii) hereof. (g) Other Events. If any event occurs of the type contemplated by the foregoing provisions of this Section 10 but not expressly provided for by such provisions, then the Board of Directors will make an appropriate adjustment to the Conversion Price so as to protect the rights of the holders of the Series D Preferred Shares; provided, however, that no such adjustment will increase the Conversion Price as otherwise determined pursuant to this Section 10.

	
	 13 Section 11. Record Holders. To the fullest extent permitted by applicable law, the Company, the Registrar, the Transfer Agent and the Paying Agent may deem and treat the Holder of any Series D Preferred Shares as the true, lawful and absolute owner thereof for all purposes, and neither the Company nor the Registrar, the Transfer Agent or the Paying Agent shall be affected by any notice to the contrary. Section 12. Notices. All notices or communications in respect of the Series D Preferred Shares shall be sufficiently given if given in writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Statement of Designation, in the Articles of Incorporation and Bylaws or by applicable law. Section 13. Other Rights. The Series D Preferred Shares shall not have any voting powers, preferences or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth in this Statement of Designation or in the Articles of Incorporation or as provided by applicable law.   [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]Exhibit 10.13
	
	

MEMORANDUM OF AGREEMENT

Norwegian Shipbrokers' Association's Memo
-
randum 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
..

Dat
ed:

June 13, 2022

Bokak Shipping Company Inc., Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Marshall Islands MH96960
,

hereinafter called the Sellers, have agreed to sell, and

1

Darrit Shipping Company Inc.
, Trust Company Complex, Aj
e
ltake Road, A
jeltake Island, Majuro,
Marshall

Islands MH96960,

hereinafter called the Buyers, have agreed to buy

2

Name:

m.v. “Baltimore”

3

Classification Society/Class:

Nippon Kaiji Kyokai

4

Built:

2005

By:

Namura Shipbuilding Co. Ltd., J
apan

5

Flag:

Repu
blic of the Marshall Islands

Place of Registration:

Majuro

6

Call Sign:

V7AY8

Grt/Nrt:

89,523mts/5
9,055mts

7

Register Number:

5096

8

hereinafter called the Vessel, on the following terms and conditions:

9

Definitions

10

"B
anki
ng days" are d
ays on which banks are open both in the country of the currency stipulated for
the Purchase Price in
Clause 1
,
Norway,

and in the place of closing stipulated in Clause 8.

11

12

"In writing" or "written" means a letter handed over from

the

Sellers to th
e Buyers or vice versa, a
registered letter, telex, telefax or other modern form of written communica
tion.

13

14

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

15

1.

Purchase Price

16

US$22,000,0
00.0
0 (United Stat
es dollars twenty
-
two million)

2.

Deposit

17

As security for the correct fulfillment of this

Agreement the Buyers shall pay a deposit of
2
0%

(t
wenty

per cent)

of the Purchase Price
in cash
within

three (3)

banking days from the d
ate
of this
Agreem
ent. This deposit shall be
lodged
with

the Sellers’ designated bank account
stated

here
-
below:

BANK: NORDEA BANK ABP, FILIAL I NORGE

BANK ADDRESS: ESSENDROPS GATE 7, P.O. BOX 1166 SENTRUM 0107 OSLO, NORWAY

SWIFT CODE: NDEANOKK

A/C

No: 6010.0
4.93848

IBAN N
o: NO8860100493848

A/C NAME: BOKAK SHIPPING COMPANY INC.

CORRESPONDENT BANK: BANK OF AMERICA N
..A., NEW YORK

SWIFT CODE: BOFAUS3N

18

19

20

and held by them in a joint account for the Sellers and the Buyers, to be released in
accordance
with joint wri
tten instructions of the Sellers and the Buyers. Interest, if any, to be credited to the
Buyer
s. Any fee charged for holding the said deposit shall be borne equally by the Sellers and the
Buyers.

21

22

23

24

	
	3.

Payment

25

The
80% (
eight
y

per cen
t)
balance of the
Purchase Price shall be paid in
the form of newly issued
preferred shar
es

(the “Share Consideration”)

of the Buyer or the Buyer’s pare
nt company (the
“Issuer”) having a

fair market value e
q
ual to
USD$ 17,600,
000.
The terms o
f
the Share
Co
nsideration shall

be
mutually agreeable to the Seller and the

Issuer and shall include
a
preferred

cash dividend and shall be convertible into the Issuer’s common shares, par valu
e USD$0.0
1 per
share
, upon issuance.

The Sh
are Consideration s
hall be issue
d

to the Seller not later than the second business day
following the
delivery of the Ve
ssel.

26

on delivery of the Vessel, but not later than 3 banking days after the Vessel is in every re
spect
physically ready for delivery in accordan
ce with the t
e
rms and conditions of this Agreement and
Notice of Readine
ss has been given in accordance with Clause 5.

27

28

29

4.

Inspections

30

a)*

The Buyers have inspected and accepted the Vess
el's classification records. The Buyers
have al
so inspected
t
he Vessel at/in

on

31

32

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.

33

34

b
)*

The Buyers shall have the right to inspect t
he
Vessel and

Vessel's classification records
..
The Buyers shall declare
whether they exercise the option of inspecting the Ves
sel and her
classification records within five days’ from signing of the Agreement.

If the Buyers do not
exercise their option, th
e sale is out
r
ight
and definite, subject only to the terms and
condition
s of this Agreement.

and declare whether same are accepted or not within

35

36

The Sellers shall provide for inspection of the Vesse
l at/in

37

The Buyers shall undertake the
inspection wi
t
hout undue delay to the Vessel. Should the
Buyers cause un
due delay they shall compensate the Sellers for the losses thereby
incurred. The Buyers shall inspect the Vessel without opening up and w
ithout cost to the
Sellers. During this inspect
ion, the Vess
e
l's deck and engine log books shall be made
available for
examination by the Buyers. If the Vessel is accepted after such inspection, the
sale shall become outright and definite, subject only to
the terms and conditions of this
Agreement, pro
vided the Sel
l
ers receive written notice of acceptance from the Buyers
w
ithin 72 hours after completion of such inspection.

38

39

40

41

42

43

44

45

Should notice of acceptance of the Vessel's classification
records and of the Vessel not be
received by th
e Sellers as
a
foresaid, the deposit together with interest earned shall
be
released immediately to the Buyers, whereafter this Agreement shall be null and void.

46

47

48

4a) and 4b) are alternatives; dele
te whichever is not applicable. In the absence
of
deletions,

alternative 4a) to apply.

49

50

5.

Notices, time a
nd place of delivery

51

a)

The Sellers shall keep the Buyers well informed of the Vessel's itinerary and shall provide
the Buyers wit
h

twenty

,

ten
,
five
,
three

days
’

notice of th
e estimated t
i
me of arrival at the
intended place of
/unde
rwater inspection/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 writ
ten Notice of

Readiness for delivery.

52

53

54

55

56

b
)

The Vessel shall be delivered and taken over safely afloat at a safe and accessible berth or
anchorage at/in

Singapore/Japan range.

57

58

in the Sellers' option.

59

Expected time of deli
very:

18
th

Ju
l
y 2022

60

	
	
Date of canceling (see Clause
s 5 c), 6 b) (iii) and 14):

31
st

August 2022

61

c)

If the Sellers anticipate that, notwithstanding the exercise of due diligence by t
hem, the
Vessel will not be ready for delivery by the canceli
ng date they
m
ay notify the Buyers in
writing stating the
date when they anticipate that the Vessel will be ready for delivery and
propose a new canceling date. Upon receipt of such notification
the Buyers shall have the
option of either canceling this Agr
eement in acc
o
rdance with Clause 14 within 7 running
days
of receipt of the notice or of accepting the new date as the new canceling date. If the
Buyers have not declared their option within 7 ru
nning days of receipt of the Sellers'
notification or if the
Buyers accept

the new date, the date proposed in the Selle
rs'
notification shall be deemed to be the new canceling date and shall be substituted for the
canceling date stipulated in line 61.

62

6
3

64

65

66

67

68

69

70

71

If this Agreement is maintaine
d with the ne
w

canceling date all other terms and conditio
ns
hereof including those contained in Clauses 5 a) and 5 c) shall remain unaltered and in full
force and effect. Cancellation or failure

to cancel shall be entirely without prejudice to any
claim f
or damages th
e

Buyers may have under Clause 14 for the Ves
sel not being ready by
the original canceling date.

72

73

74

75

76

d)

Should the Vessel become an actual, constructive or compromise
d total loss before
delivery the deposit together with intere
st earned sha
l
l be released immediately to the
Buyers wher
eafter this Agreement shall be null and void.

77

78

79

6.

Drydocking/Divers Inspection

80

a)**

The Sellers shall place t
he Vessel in drydock at the port of delivery for inspection b
y the
Classif
i
cation Society of the Vessel's underwater pa
rts below the deepest load line, the
extent of the inspection being in accordance with the Classification Society's rules. If the
rudder,

propeller, bottom or other underwater parts below the deepes
t load line a
r
e found
broken, damaged or defective so as t
o affect the Vessel's class, such defects shall be
made good at the Sellers' expense to the satisfaction of the Classification Society wi
thout
condition/recommendation*.

81

82

83

84

85

86

87

b)*
*

(i)

The Ves
s
el is to be delivered without drydocking. Ho
wever, the Buyers shall have
the right at their expense to arrange for an underwater inspection by a diver approved by
the Classification

Society prior to the delivery of the Vessel. The Sellers sha
ll at their c
o
st
make the Vessel available for such inspec
tion. The extent of the inspection and the
conditions under which it is performed shall be to the satisfaction of the Classification
Soci
ety. If the conditions at the port of delivery are unsuitable

for such ins
p
ection, the
Sellers shall make the Vessel av
ailable at a suitable alternative place near to the delivery
port.

88

89

90

91

92

93

94

95

(ii)

If the rudder, propeller, bottom or
other underwater parts below the deepest load
line are found
broken, damag
e
d or defective so as to affect the Vessel's
class, then unless
repairs can be carried out afloat to the satisfaction of the Classification Society, the Sellers
shall arrange for the

Vessel to be drydocked at their expense for inspection by th
e
Classificat
i
on Society of the Vessel's underwater parts
below the deepest load line, the
extent of the inspection being in accordance with the Classification Society's rules. If the
rudder, pro
peller, bottom or other underwater parts below the deepest lo
ad line are f
o
und
broken, damaged or defective so as to af
fect the Vessel's class, such defects shall be
made good by the Sellers at their expense to the satisfaction of the Classification Societ
y
without condition/recommendation*. In such event the Seller
s are to pay
a
lso for the cost of
the underwater inspectio
n and the Classification Society's attendance.

96

97

98

99

100

101

102

103

104

105

106

(iii)

If the Vessel is to be drydocked pursua
nt to Clause 6 b) (ii) and no suitable dry
-
docking facilities

are availabl
e

at the port of delivery, the Sellers shall
take the Vessel to a
port where suitable drydocking facilities are available, whether within or outside the delivery
range as per Clause
5 b). Once drydocking has taken place the Sellers shall deliv
er the
Vessel

at a port within the delivery range as per C
lause 5 b) which shall, for the purpose of
107

108

109

110

111

	
	this Clause, become the new port of delivery. In such event the canceling date provided for
in

Clause 5 b) shall be extended by the additional time require
d for the dry
d
ocking and
extra steaming, but limited to a
maximum of 14 running days.

112

113

114

c)

If the Vessel is drydocked pursuant to Clause 6 a) or 6 b) above

115

(i)

the Classification Society may require survey of the

tailshaft sy
s
tem, the extent of
the survey being to the s
atisfaction of the Classification surveyor. If such survey is not
required by the Classification Society, the Buyers shall have the right

to require the tailshaft
to be drawn and surveyed by the Cla
ssification S
o
ciety, the extent of the survey being in
acc
ordance with the Classification Society's rules for tailshaft survey and consistent with
the current stage of the Vessel's survey cycle.
The Buyers shall declare whether they
require the tailshaft t
o be drawn an
d

surveyed not later than by the completion o
f the
inspection by the Classification Society. The drawing and refitting of the tailshaft shall be
arranged by the Sellers. Should any p
arts of the tailshaft system be condemned or found
defective
so as to affe
c
t the Vessel's class, those parts shall be r
enewed or made good at
the Sellers' expense to the satisfaction of the Classification Society without
condition/recommendation*.

116

117

118

119

120

121

122

123

124

125

126

127

(ii)

the expense
s relating to

the survey of the tailshaft system shall be
borne by the
Buyers unless the Classification Society requires such survey to be carried out, in which
case the Sellers shall pay these e
xpenses. The Sellers shall also pay the expenses if the
Buyer
s require the

survey and parts of the system are condemned

or found defective or
broken so as to affect the Vessel's class*.

128

129

130

131

132

(iii)

the expenses in connection with putting

the Vessel in and taking her out of drydock,
including the d
rydock dues a
n
d the Classification Society's fees shall be

paid by the Sellers
if the Classification Society issues any condition/recommendation* as a result of the survey
or if it requires surve
y of the tailshaft system. In all other cases the Buyers shal
l pay the
afo
r
esaid expenses, dues and fees.

133

134

135

1
36

137

(iv)

the Buyers' representative shall have the right to be present in the drydock, but
without interfering with the work or d
ecisions of the Classification surveyor.

138

139

(v)

the

Buyers shall

have the right to have the underwater parts
of the Vessel cleaned
and painted at their risk and expense without interfering with the Sellers' or the
Classification surveyor's work,
if any, and without affecting the Vessel's timely delivery. I
f,
however, t
h
e Buyers' work in drydock is still in progre
ss when the Sellers have completed
the work which the Sellers are required to do, the additional docking time needed to
complete the Buye
rs' work shall be for the Buyers' risk and expense. In the ev
ent that the
B
uyers' work requires such additional time, t
he Sellers may upon completion of the Sellers'
work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and the

Buyers shall be obliged to take delivery in accordance with
Clause 3, whe
t
her the Vessel is
in drydock or not and irre
spective of Clause 5 b).

140

141

142

143

144

145

146

147

148

149

*

Notes, if any, in the surveyor's report which are accepted by the
Classification Society
without condition/recommendation are n
ot to be take
n

into account.

150

151

**

6a) and 6b) ar
e alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 6a) to apply.

152

153

7.

Spares/bu
nkers, etc.

154

The Sellers shall deliver the Vessel to t
he Buyers wit
h

everything belonging to her on board and on

shore. All spare parts and spare equipment including spare tail
-
end shaft(s) and/or spare
propeller(s)/propeller blade(s), if any, belon
ging to the Vessel at the time of inspection used or
unused,
whether on bo
a
rd or not shall become the Buyers' property,

but spares on order are to be
excluded. Forwarding charges, if any, shall be for the Buyers' account. The Sellers are not required
to re
place spare parts including spare tail
-
end shaft(s) and spare

propeller(s)
/
propeller blade(s)
which are taken out of sp
are and used as replacement prior to delivery, but the replaced items
155

156

157

158

159

160

161

	
	shall be the property of the Buyers. The radio installation and nav
igational equipment shall be
included in the sale without ext
ra payment if

they are the property of the Sellers.

Unused

stores
and provisions shall be included in the sale and be taken over by the Buyers without extra
payment.

1
62

163

164

The Sellers have the right to take ashore croc
kery, plates,

cutlery, linen and other articles bearing
th
e 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'
a
nd 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):

165

166

167

168

169

To be include
d in the form of Annex 1 to the Agreement

with
in
five (5) d
a
ys’
after signing

of the
Agreement
..

The Buyers shall take over the remaining bunkers
in storage tanks and sealed drums and pay the
Sellers t
he prices

based on Shanghai PLATT’S prices as published three (3) banking days prior to
th
e day of phys
i
cal delivery re
gardless of the fact that it refers to the previ
ous day.

The Buyers
shall also pay for the unused lubricating and hydraulic oils and greases that have not

passed
through the Vessel’s system and are
kept in storage tanks and dr
ums and pay a
s

per Sellers’
actual purchase price (excluding barg
ing expenses) as e
videnced by invoices and/or vouchers.
The exact quantities of remaining bunkers, lubricating, hydraul
ic oils and greases at the time of
delivery
shall be sounded and fixed b
y and between

the Sellers’ and the Buyers’ representatives
on an
estimation basis latest by two (2) days’ prior to the expected date of delivery of the Vessel.

170

171

172

Payment un
der this Clause shall be made
in cash
at the same time and place and in
the same
curr
e
ncy as the Purchase Price.

173

174

8.

Documentat
ion

175

The place of closing:

Sellers’ Managers’ premises

or e
-
closing.

176

In exchange for payment of the Pur
chase Price the Sellers shall furnish the Buyers

and the Buyers
shall fu
rnish the Sel
l
ers

with delivery documents

which
shall be mutually

agreed and

incorporated
in an Addendum No. 1 to the Agreement after signing of the Agreement and lodging of the Deposi
t
,
namely:

177

178

a)

Legal Bill of Sale in a form recordable in

(t
he country in

which the Buyers are
to register the Vessel), warra
nting that the Vessel is free from all encumbrances,
mortgages and maritime liens or any other debts or claims whatsoev
er, duly notarially
attested and legalized by the consul of such country

or other com
p
etent authority.

179

180

181

182

b)

Current Cer
tificate of Ownership issued by the competent authorities of the flag state of the
Vessel.

183

184

c)

Confirmation
of Class issued within 72 hours prior to delivery.

185

d)

Current Ce
rtificate iss
u
ed by the competent authorities stating that the Ve
ssel is free from
registered encumbrances.

186

187

e)

Certificate of Deletion of the Vessel from the Vessel's regis
try or other official evidence of
deletion appropriate to the Vessel's r
egistry at th
e

time of delivery, or, in the event that the
regist
ry does not as a matter of practice issue such documentation immediately, a written
undertaking by the Sellers to effec
t deletion from the Vessel's registry forthwith and furnish
a Certificat
e or other of
f
icial evidence of deletion to the Buyers promptly a
nd latest within 4
(four) weeks after the Purchase Price has been paid and the Vessel has been delivered.

188

189

190

1
91

192

193

f)

Any such additional documents as may reasonably be req
uired by the
c
ompetent
authorities for the purpose of registering

the Vessel, provided the Buyers notify the Sellers
of any such documents as soon as possible after the date of this Ag
reement.

194

195

196

At the time of delivery the Buyers and Sellers
shall sign an
d

deliver to each other a Protocol of
197

	
	Delivery and A
cceptance confirming the date and time of delivery of the Vessel from the Sellers to
the Buyers.

198

199

At the

time of delivery the Sellers shall hand to the Buyers the classificatio
n certificate
(
s) as well as
all plans etc., which are on board th
e Vessel. Other certificates which are on board the Vessel shall
also be handed over to the Buyers unless the Sellers a
re required to retain same, in which case
the Buyers to have the right t
o 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 kee
p the Vessel's log books but the Buyers to have the right to take copies

of
same.

200

201

202

203

204

205

206

9.

Encumbrance
s

207

The Sellers warrant that the Vessel, at the time of delivery, is free from all charters, encumbrances,
mortga
ges and maritime liens or any other debts whatsoever. The Sellers hereby

undertake to

indemnity the Buyers against all consequences of cl
aims made against the Vessel which have
been incurred prior to the time of delivery.

208

209

210

211

10.

T
axes, etc.

212

Any taxes, fees and expenses in connection with the p
urchase and r
e
gistration 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 Selle
rs' account.

213

214

215

11.

Condition on delivery

216

The Ves
sel with ever
y
thing belonging to her shall be at the Sellers' ris
k and expense until she is
delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall

be
delivered and taken over
as she was at the time of inspection

on an
“as is, where

is” basis
, fair
wear and tear excepted.

217

218

219

However, the Vessel shall be delivered with her class maintained without condition/
recommendation*, free of average
damage affecting the Vessel's class, and with her classification
certifi
cates and nat
i
onal certificates, as well as all other certificate
s the Vessel had at the time of
inspection, valid and unextended without condition/recommendation* by Class or the rele
vant
authorities at the time of delivery.

220

221

222

223

224

"Inspecti
on" in this C
l
ause 11, shall mean the Buyers' inspection accordin
g to Clause 4 a) or 4 b), if
applicable, or the Buyers' inspection prior to the signing of this Agreement. If the Vesse
l is taken
over without inspection, the date of this Agreement shall be
the relevant
d
ate.

225

226

227

*

Notes, if any, in the survey
or's report which are accepted by the Classification Society
without condition/recommendation are not to be taken into
account.

228

229

12.

Name/markings

230

Upon delivery the B
uyers underta
k
e to
change the name of the Vessel and

a
l
ter funnel

markings

and
erase side shell logos, if any
..

231

1
3
..

Buyers' default

232

Should the deposit not be paid
in accordance with Clause 2, the Sellers have the right to cancel
this A
greement, and

they shall be entitled to claim compensation for th
eir losses and for all
expenses incurred together with interest.

233

234

235

	
	Should the Purchase Price not be paid in
accordance with Clause 3, the Sellers have the right to
cancel the Agree
ment, in whic
h

case the deposit together with interest earned sha
ll 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 wi
th interest.

2
36

237

238

239

1
4
..

Sellers' default

240

Should the Sellers fail to give Notice of Readiness in accordance with Clause 5 a) or fail to be
ready to validly compl
ete a legal transfer by the date stipulated in line 61 the Buyers shall
have the
opti
o
n of canceling 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 give
n

but before the
Buyers have taken delivery, the Ves
sel ceases to be physically ready for delivery and is not made
physically ready again in every respect by the date stip
ulated in line 61 and new Notice of
Readiness given, the Buyers shall re
tain their op
t
ion to cancel. In the event that the Buyers elect t
o
cancel this Agreement the deposit together with interest earned shall be released to them
immediately.

241

242

243

24
4

245

246

247

248

249

250

Should the Sellers fail to give Notice of Rea
diness by the

date stipulated in line 61 or fail to be
ready to v
alidly complete a legal transfer as aforesaid they shall make due compensation to the
Buyers for their loss and for all

expenses together with interest if their failure is due to proven
negli
gence and whe
t
her or not the Buyers cancel this Agreement.

251

25
2

253

254

15.

Buyers' representative

255

After this Agreement has been signed by both parties and the deposi
t has been lodged, the Buyers
have the right to place two representative
s on board th
e

Vessel at their sole risk and expense
..

upon

arriva
l at

on or about

256

257

258

These representatives are on board for the purpose of familiarization and in the capac
ity of
observers only, and they shall not interfere in any respect with
the operation

of the Vessel. The
Buyers' representatives shall si
gn the Sellers' letter of indemnity prior to their embarkation.

259

260

261

1
6
..

Arbitration

262

a)*

This Agreemen
t shall be governed by and construed in accordance with English law and
any dispute a
r
ising out of this Agreement shall be referred to ar
bitration in London in
accordance with the Arbitration Act

1996
or any statutory modification or re
-
enac
tment
thereof for the time being in force, one arbitrator being appointed by each party
.. On the
rece
i
pt 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 proper
ty appointed
s
hall not agree they
shall appoint an

umpire whose decision shall be final.

263

264

265

266

267

268

269

270

b)*

This Agreement shall be governed by and
construed in accordance with Title 9 of the
United States Code and the Law of the State

of New York
a
nd should any dispute arise out
of t
his Agreement, the matter in dispute shall be referred to three persons at New York, one
to be appointed by each of the

parties hereto, and the third by the two so chosen; their
decision or that of any two
of them shall

be final, and for purpose of enforci
ng any award,
this Agreement may be made a rule of the Court.

271

272

273

274

275

276

The proceedings shall be conduc
ted in accordance with the rules of the Society of Maritime
Arbitrators, Inc. New York.

277

278

c
)*

Any dispute arising out of this A
greement shall be referred to arbitration at

279

, subject to the procedures applicable there.

280

The laws of

shall govern this Agreement.

281

16a), 16b) and 16c) are alternatives; delete

whichever is

not applicable. In the absence of
de
letions, alternative 16a) to apply.

282

283

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