Document:

FIRST AMENDMENT TO

INSURANCE AGENCY MASTER AGREEMENT

 

THIS FIRST AMENDMENT TO THE INSURANCE MASTER AGREEMENT (this “First Amendment”) dated this 12th day of February, 2013 by and between Ivantage Select Agency, Inc. an affiliate of Allstate Insurance Company (“Allstate”), with its principal office located at 3100 Sanders Rd, Northbrook, IL, 60062 (“ISA”) and Federated National Underwriters, Inc., a Florida corporation with its principal office located at 14050 NW 14th Street, Suite 180, Sunrise, Florida 33323 (hereinafter “COMPANY”)(singularly “Party”, and collectively the “Parties”). This First Amendment shall be effective as of February 12th, 2013.

 

RECITALS

 

WHEREAS, COMPANY and ISA entered into that certain Insurance Agency Master Agreement dated as of February 4, 2013 (the “Agreement”);

 

WHEREAS, pursuant to Section 20, the Agreement may be amended or modified in writing agreed to and signed by authorized representatives of both Parties;

 

WHEREAS, COMPANY and ISA desire to replace Schedule A, as more particularly described herein; and

 

WHEREAS, COMPANY and ISA desire to add Condominium and Renters as Coverage available through COMPANY.

 

AGREEMENT

 

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

 

		1.	The Parties agree that First Revised Schedule A of the Agreement hereby replaces and supersedes Schedule A, and is made a part of the Agreement effective as of February 4th, 2013.

 

		2.	Except for the amendments to the Agreement expressly provided for herein, the Agreement shall remain unchanged and in full force and effect.

 

		3.	This First Amendment shall be binding on the parties hereto, including their affiliates, successors and assigns.

 

		4.	Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to them in the Agreement.

 

		5.	This First Amendment may be signed in multiple counterparts which together shall constitute a single instrument.

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date below.

 

	
FEDERATED NATIONAL

	
 

	
IVANTAGE SELECT AGENCY, INC.

	
	
UNDERWRITERS, INC.

	
 

	
 

	
 

	
	
 

	
 

	
 

	
 

	
 

	
	
 

	
 

	
 

	
 

	
 

	
	
By:

	
/s/ J. Gordon Jennings, III

	
 

	
By:

	
/s/ Mark Green

	
	
Typed Name:

	
J.G. Jennings, III

	
 

	
Typed Name:

	
Mark Green

	
	
Title:

	
President

	
 

	
Title:

	
President

	
	
Date:

	
2/13/13

	
 

	
Date:

	
2/26/13

	

First Revised Schedule A

 

This First Revised Schedule A (“Schedule”) is entered into this ______ day of February, 2013 by and between Federated National Underwriters, Inc. (“COMPANY”) and Ivantage Select Agency, Inc. (“ISA”), pursuant to Section 3, of that certain Insurance Agency Master Agreement dated February 4, 2013, between COMPANY and ISA (“Agreement”).  This Schedule is attached to and subject to the terms and conditions of that Agreement and contains the following terms and conditions.

 

Coverage

 

ISA agrees to allow certain designated Producers to place Homeowners, Dwelling Fire, Condominium, Renters, and Commercial General Liability coverage with Company.  All policies written pursuant to this Schedule shall be written by Federated National Insurance Company (“Carrier”) (NAIC # 10790) unless agreed to otherwise in writing by ISA.

Commissions

 

*

 

Company shall pay commissions to Producers on a premiums received basis (net of endorsements, cancellations, reinstatements, and any additional mandatory fees) as follows:

 

8% of new business premium and 8% of renewal business premium on Homeowners,  Dwelling Fire, Condominium, and Renters for the first twenty-five (25) policies written  pursuant to this Agreement.  Commissions shall be 10% of new business premium and  10% of renewal business premium thereafter once Producer meets the threshold of twenty-five (25) policies on Homeowners, Dwelling Fire, Condominium, and Renters  policies written pursuant to this Agreement.

 

15% of new premium and 15% of renewal premium on Commercial General Liability  policies written pursuant to this agreement.

 

Payments and any necessary adjustments will be made on the 10th business day of each month for the preceding month’s business. *

 

Mandatory additional fees shall be defined as additional fees as authorized under law, including but not limited to: $25 policy service fee, $2 Emergency Management Preparedness and Assistance Trust Fund (state fee), Citizen 2005 Emergency Assessment (state fee), Florida Hurricane Catastrophe Fund Emergency Assessment (state fee).

* Portions of this document omitted pursuant to an application for an order for confidential treatment pursuant to Rule 24b-2 under the Exchange Act. Confidential portions of this document have been filed separately with the Securities and Exchange Commission.

Territory

 

The State of Florida.

 

*

Termination

 

This Schedule may be terminated pursuant to the terms of Section 17 of the Agreement.  In addition, and without prejudice to the right of either Party to invoke any applicable right of termination under said Section 17, Section 17 of the Agreement is hereby amended to provide for the following additional termination events; ISA, in its sole discretion, may immediately terminate this Schedule upon a Carrier’s failure to maintain at least an “A (Exceptional)”rating from Demotech FSR.

 

Accepted by:

 

	
FEDERATED NATIONAL

	
 

	
IVANTAGE SELECT AGENCY, INC.

	
	
UNDERWRITERS, INC.

	
 

	
 

	
 

	
	
 

	
 

	
 

	
 

	
 

	
	
 

	
 

	
 

	
 

	
 

	
	
By:

	
/s/ J. Gordon Jennings, III

	
 

	
By:

	
/s/ Mark Green

	
	
Typed Name:

	
J.G. Jennings, III

	
 

	
Typed Name:

	
Mark Green

	
	
Title:

	
President

	
 

	
Title:

	
President

	
	
Date:

	
2/13/13

	
 

	
Date:

	
2/26/13

	

 

* Portions of this document omitted pursuant to an application for an order for confidential treatment pursuant to Rule 24b-2 under the Exchange Act. Confidential portions of this document have been filed separately with the Securities and Exchange Commission.Exhibit 10.1

 

	
MEMORANDUM OF AGREEMENT

 

 

Dated: 31st  October 2013

	
 

	
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.

	
Harmony Shipholding S.A. , 53rd E street, Urbanizacion Marbella, MMG Tower, 16th Floor, Panama, Republic of Panama,  to be guaranteed by SK Shipping Co., Ltd

	
 

	
hereinafter called the Sellers, have agreed to sell, and

	
1

	
Baltic Lion Limited., Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960, to be guaranteed by Baltic Trading Limited

	
 

	
hereinafter called the Buyers, have agreed to buy

	
2

	
 

	
 

	
Name: MV K Global Pride

	
3

	
 

	
 

	
Classification Society/Class: KR/ABS

	
4

	
Built: January  2012               By: Hyundai Heavy Industries Co.,Ltd. Ulsan, Korea

	
5

	
Flag: Panama                           Place of Registration: Panama

	
6

	
Call Sign: 3EUB7                     Grt/Nrt:  93,290/60,453

	
7

	
Register Official  Number: 43505-12    IMO Number: 9593464

	
8

	
 

	
 

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

	
9

	
 

	
 

	
Definitions

	
10

	
 

	
 

	
“Banking days” are days on which banks are open both in all of the countriesy: the country of the currency

	
11

	
stipulated for the Purchase Price in Clause 1 and in the place of closing, Greece, South Korea, Hong Kong and United States of America. stipulated in Clause 8.

	
12

	
 

	
 

	
“In writing” or “written” means a letter handed over from the Sellers to the Buyers or vice versa,

	
13

	
a registered letter, telex, telefax or other modern form of written communication.

	
14

	
 

	
 

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

	
15

	
1.

	
Purchase Price : $52,500,000 (Fifty Two Million Five Hundred Thousand United States Dollars) in cash

	
16

	
 

	
 

	
 

	
2.

	
Deposit

	
17

	
As security for the correct fulfillment of this Agreement the Buyers shall pay a deposit of 20%

	
18

	
(twenty  per cent) of the Purchase Price in an escrow account in the name of Buyer and Seller at Sellers’ nominated bank(“Joint Escrow Account”), Woori Bank, Hong Kong Branch(“Account Bank”), Suite 1401, Two Pacific Place, 88 Queensway, Hong Kong.  The said deposit is to be lodged within 3(three) banking days from the date of this MOA being signed by both parties by fax/email (“Required Deposit Date”), but conditional upon Sellers’ bank confirmation in writing to the parties that the escrow account has been opened and ready to receive the funds. The Buyer has the obligation to submit the requested documents to the Account Bank and needs to fully comply and assist with the account opening procedures which shall not be unreasonably withheld or delayed. If the escrow account is opened after the Required Deposit Date, the 20% deposit shall be made immediately on the date that the joint account is opened.

Any fees/bank charges to be shared equally by the Sellers and Buyers. Interest earned on the deposit to be for 

	
19

	
Buyer's account. Deposit to be released in accordance with joint written instructions of the Seller and Buyer. In case that the said deposit is refunded to the Buyer for whatsoever reason, any costs or expenses incurred by the Seller arising from the Buyers’ fault shall be deducted, subject to the terms and conditions of this agreement.

	
	
Agreement.  This deposit shall be placed with

	
20

	
 

	
 

	
and held by them in a joint account for the Sellers and the Buyers, to be released in accordance

	
21

	
with joint written instructions of the Sellers and the Buyers. Interest, if any, to be credited to the

	
22

	
Buyers. Any fee charged for holding the said deposit shall be borne equally by the Sellers and the

	
23

	
Buyers.

	
24

 

	
3.

	
Payment

	
25

	
The said Balance of the  Purchase Price shall be paid in full free of bank charges to Woori Bank, Hong Kong Branch, and the deposit released to the Sellers,

	
26

	
on delivery of the Vessel, but not later than 3 banking days after the Vessel is in every respect

	
27

	
physically ready for delivery in accordance with the terms and conditions of this Agreement and

	
28

	
Notice of Readiness has been given. in accordance with Clause 5.

	
29

 

	
4.

	
Inspections

	
30

	
a)*

	
The Buyers have waived their right to physical inspection. inspected and accepted The Vessel’s classification records have been inspected and accepted by the buyers.  The Buyers

	
31

	
 

	
have also inspected the Vessel at/in       on

	
32

	
 

	
and have accepted the Vessel following this inspection and Therefore the sale is outright and definite,

	
33

	
 

	
subject only to the terms and conditions of this Agreement.

	
34

	
 

	
 

	
 

	
b)*

	
The Buyers shall have the right to inspect the Vessel’s classification records and declare

	
35

	
 

	
whether same are accepted or not within

	
36

	
 

	
 

	
 

	
 

	
The Sellers shall provide for inspection of the Vessel at/in

	
37

	
 

	
 

	
 

	
 

	
The Buyers shall undertake the inspection without undue delay to the Vessel. Should the

	
38

	
 

	
Buyers cause undue delay they shall compensate the Sellers for the losses thereby incurred.

	
39

	
 

	
The Buyers shall inspect the Vessel without opening up and without cost to the Sellers.

	
40

	
 

	
During the inspection, the Vessel’s deck and engine log books shall be made available for

	
41

	
 

	
examination by the Buyers. If the Vessel is accepted after such inspection, the sale shall

	
42

	
 

	
become outright and definite, subject only to the terms and conditions of this Agreement,

	
43

	
 

	
provided the Sellers receive written notice of acceptance from the Buyers within 72 hours

	
44

	
 

	
after completion of such inspection.

	
45

	
 

	
Should notice of acceptance of the Vessel’s classification records and of the Vessel not be

	
46

	
 

	
received by the Sellers as aforesaid, the deposit together with interest earned shall be

	
47

	
 

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

	
48

	
 

	
 

	
 

	
*

	
4 a) and 4 b) are alternatives; delete whichever is not applicable, in the absence of deletions,

	
49

	
 

	
alternative 4 a) to apply.

	
50

 

	
5.

	
Notices, time and place of delivery

	
51

	 		
	
a)

	
The Sellers shall keep the Buyers well informed of the Vessel’s itinerary and shall

	
52

	
 

	
provide the Buyers with 30(thirty), which shall not be applicable in case the Vessel is to be delivered without a further laden voyage after discharge in People's Republic of China, 15(fifteen), 10(ten), 5(five), 3(three)  and 1(one) days notice of the estimated time of arrival at the

	
53

	
 

	
intended place of drydocking/underwater inspection/delivery. When the Vessel is at the place

	
54

	
 

	
of delivery and in every respect physically ready for delivery in accordance with this

	
55

	
 

	
Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.

	
56

	
 

	
 

The Vessel’s place of delivery will not include any area, or port within the jurisdiction of any nation prohibited under the laws of the United States of America, or the United Nations. But both vessels to deliver at the conclusion of current laden voyage.

 

	
 

	
b)

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

	
57

	
 

	
anchorage at/in   Far East range

	
58

	
 

	
 

	
 

	
 

	
in the Sellers’ option.

	
59

	
 

	
 

	
 

	
 

	
Expected time of delivery: between 15th November, 2013 and 31st December, 2013

	
60

	
 

	
 

	
 

	
 

	
Date of canceling (see Clauses 5 c), 6 b) (iii) and 14): 31st December, 2013

	
61

	
 

	
 

	
 

	
c)

	
If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, the

	
62

	
 

	
Vessel will not be ready for delivery by the cancelling date they may notify the Buyers in

	
63

	
 

	
writing stating the date when they anticipate that the Vessel will be ready for delivery and

	
64

	
 

	
propose a new cancelling date. Upon receipt of such notification the Buyers shall have the

	
65

	
 

	
option of either canceling this Agreement in accordance with Clause 14 within 7 running

	
66

	
 

	
days of receipt of the notice or of accepting the new date as the new cancelling date. If the

	
67

	
 

	
Buyers have not declared their option within 7 running days of receipt of the Sellers’

	
68

	
 

	
notification or if the Buyers accept the new date, the date proposed in the Sellers’ notification

	
69

	
 

	
shall be deemed to be the new cancelling date and shall be substituted for the cancelling

	
70

	
 

	
date stipulated in line 61.

	
71

	
 

	
 

	
 

	
 

	
If this Agreement is maintained with the new canceling date all other terms and conditions

	
72

	
 

	
hereof including those contained in Clauses 5 a) and 5 c) shall remain unaltered and in full

	
73

	
 

	
force and effect. Cancellation or failure to cancel shall be entirely without prejudice to any

	
74

	
 

	
claim for damages the Buyers may have under Clause 14 for the Vessel not being ready by

	
75

	
 

	
the original cancelling date.

 

	
76

	
d)

	
Should the Vessel become an actual, constructive or compromised total loss before delivery

	
77

	
 

	
the deposit together with interest earned shall be released immediately to the Buyers

	
78

	
 

	
whereafter this Agreement shall be null and void.

	
79

 

	
6.

	
Drydocking/Divers Inspection

	
80

	
a)**

	
The Sellers shall place the Vessel in drydock at the port of delivery for inspection by the

	
81

	
 

	
Classification Society of the Vessel’s underwater parts below the deepest load line, the

	
82

	
 

	
extent of the inspection being in accordance with the Classification Society’s rules. If the

	
83

	
 

	
rudder, propeller, bottom or other underwater parts below the deepest load line are found

	
84

	
 

	
broken, damaged or defective so as to affect the Vessel’s class, such defects shall be made

	
85

	
 

	
good at the Sellers’ expense to the satisfaction of the Classification Society without

	
86

	
 

	
condition/recommendation*.

	
87

	
 

	
 

	
 

	
b)**

	
(i)       The vessel is to be delivered without drydocking. However, the Buyers shall

	
88

	
 

	
have the right declarable within 7(seven) days prior to expected delivery  at their expense to arrange for an underwater inspection by a diver approved

	
89

	
 

	
by the Classification Society prior to the delivery of the Vessel. The Sellers shall at their

	
90

	
 

	
cost make the Vessel available for such inspection. The extent of the inspection and the

	
91

	
 

	
conditions under which it is performed shall be to the satisfaction of the Classification

	
92

	
 

	
Society. If the conditions at the port of delivery are unsuitable for such inspection, the

	
93

	
 

	
Sellers shall make the Vessel available at a suitable alternative place near to the delivery

	
94

	 	
port.

	
95

	 		
	
 

	
(ii)       If the rudder, propeller, bottom or other underwater parts below the deepest load line

	
96

	
 

	
are found broken, damaged or defective so as to affect the Vessel’s class, then unless

	
97

	
 

	
repairs can be carried out afloat or can be postponed until the next scheduled Class drydocking survey  to the satisfaction of the Classification Society, the Sellers

	
98

	
 

	
shall arrange for the Vessel to be drydocked at their expense for inspection by the

	
99

	
 

	
Classification Society of the Vessel’s underwater parts below the deepest load line, the

	
100

	
 

	
extent of the inspection being in accordance with the Classification Society’s rules. If the

	
101

	
 

	
rudder, propeller, bottom or other underwater parts below the deepest load line are found

	
102

	
 

	
broken, damaged or defective so as to affect the Vessel’s class, such defects shall be made

	
103

	
 

	
good by the Sellers at their expense to the satisfaction of the Classification Society

	
104

	
 

	
without condition/recommendation*. In such event the Sellers are to pay also for the cost of

	
105

	
 

	
the underwater inspection and the Classification Society’s attendance.

	
106

	
 

	
If the repairs can be postponed until the next scheduled Class drydocking survey to the satisfaction of the Classification Society, then the Sellers shall pay to the Buyers the estimated cost to repair such damage in a way which is acceptable to Class. The amount shall be the direct cost to repair such damage only and to be based on a reasonable quotation from a ship repair yard in the delivery area. This quote shall be mutually agreed between the Buyers and the Sellers. If the Buyers and the Sellers cannot mutually agree within 1 working day after completion of the divers inspection, then the amount shall be based on the average of two quotations from repair facilities within the delivery area, one to be obtained by the Buyers and one to be obtained by the Sellers. The amount shall be deducted from the balance of the purchase money at the time of delivery. The Buyers shall then take delivery of the Vessel including the damage/s concerned, subject to the Vessel otherwise being delivered fully in accordance with this Agreement.

 

	
 

	
 

	
(iii)       If the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no suitable dry-

	
107

	
 

	
docking facilities are available at the port of delivery, the Sellers shall take the Vessel

	
108

	
 

	
to a port where suitable drydocking facilities are available, whether within or outside the

	
109

	
 

	
delivery range as per Clause 5 b). Once drydocking has taken place the Sellers shall deliver

	
110

	
 

	
the Vessel at a port within the delivery range as per Clause 5 b) which shall, for the

	
111

	
 

	
purpose of this Clause, become the new port of delivery. In such event the cancelling date

	
112

	
 

	
provided for in Clause 5 b) shall be extended by the additional time required for the

	
113

	
 

	
drydocking and extra steaming, but limited to a maximum of 14 running days.

	
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 system, the extent of

	
116

	
 

	
the survey being to the satisfaction of the Classification surveyor. If such survey is not

	
117

	
 

	
required by the Classification Society, the Buyers shall have the right to require the tailshaft

	
118

	
 

	
to be drawn and surveyed by the Classification Society, the extent of the survey being in

	
119

	
 

	
accordance with the Classification Society’s rules for tailshaft survey and consistent with

	
120

	
 

	
the current stage of the Vessel’s survey cycle. The Buyers shall declare whether they

	
121

	
 

	
require the tailshaft to be drawn and surveyed not later than by the completion of the

	
122

	
 

	
inspection by the Classification Society. The drawing and refitting of the tailshaft shall be

	
123

	
 

	
arranged by the Sellers. Should any parts of the tailshaft system be condemned or found

	
124

	
 

	
defective so as to affect the Vessel’s class, those parts shall be renewed or made good at

	
125

	
 

	
the Sellers’ expense to the satisfaction of the Classification Society without

	
126

	
 

	
condition/recommendation*.

	
127

	
 

	
(ii)       the expenses relating to the survey of the tailshaft system shall be borne

	
128

	
 

	
by the Buyers unless the Classification Society requires such survey to be carried out, in

	
129

	
 

	
which case the Sellers shall pay the expenses. The Sellers shall also pay the expenses

	
130

	
 

	
if the Buyers require the survey and parts of the system are condemned or found defective

	
131

	
 

	
or broken so as to affect the Vessel’s class*.

	
132

	
 

	
(iii)       the expenses in connection with putting  the Vessel in and taking her out of

	
133

	
 

	
drydock, including the drydock dues and the Classification Society’s fees shall be paid by

	
134

	
 

	
the Sellers if the Classification Society issues any condition/recommendation* as a result

	
135

	
 

	
of the survey or if it requires survey of the tailshaft system. In all other cases the Buyers

	
136

	
 

	
shall pay the aforesaid expenses, dues and fees.

	
137

	
 

	
 

	
 

	
 

	
(iv)       the Buyers’ representative shall have the right to be present in the drydock, but

	
138

	
 

	
without interfering with the work or decisions of the Classification surveyor.

	
139

	
 

	
 

	
 

	
 

	
(v)       the Buyers shall have the right to have the underwater parts of the Vessel

	
140

	
 

	
cleaned and painted and perform other works  at their risk and expense without interfering with the Sellers’ or the

	
141

	
 

	
Classification surveyor’s work, if any, and without affecting the Vessel’s timely delivery. If,

	
142

	
 

	
however, the Buyers’ work in drydock is still in progress when the Sellers have

	
143

	
 

	
completed the work which the Sellers are required to do, the additional docking time

	
144

	
 

	
needed to complete the Buyers’ work shall be for the Buyers’ risk and expense. In the event

	
145

	
 

	
that the Buyers’ work requires such additional time, the Sellers may upon completion of the

	
146

	
 

	
Sellers’ work tender Notice of Readiness for delivery whilst the Vessel is still in drydock

	
147

	
 

	
and the Buyers shall be obliged to take delivery in accordance with Clause 3, whether

	
148

	
 

	
the Vessel is in drydock or not and irrespective of Clause 5 b). However undocking expenses are to remain for Sellers.

	
149

	
 

	
 

	
 

	
*

	
Notes, if any, in the surveyor’s report which are accepted by the Classification Society

	
150

	
 

	
without condition/recommendation are not to be taken into account.

	
151

	
 

	
 

	
 

	
**

	
6 a) and 6 b) are alternatives; delete whichever  is not applicable. In the absence of deletions,

	
152

	
 

	
alternative 6 a) to apply.

	
153

	
7.

	
Spares/bunkers, etc.

	
154

	
The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on

	
155

	
shore and on order, without extra payment. All spare parts and spare equipment including spare tail-end shaft(s) and/or spare

	
156

	
propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or

	
157

	
unused, whether on board or not shall become the Buyers’ property, but spares on order are to be

	
158

	
excluded. Forwarding charges, if any, shall be for the Buyers’ account. The Sellers are not required to

	
159

	
replace spare parts including spare tail-end shaft(s) and spare propeller(s)/propeller blade(s) which

	
160

	
are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the

	
161

	
property of the Buyers. The radio installation and navigational equipment shall be included in the sale

	
162

	
without extra payment if they are the property of the Sellers. Unused stores and provisions shall be

	
163

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

	
164

	
 

	
 

	
The Sellers have the right to take ashore crockery, plates, cutlery, linen and other articles bearing the

	
165

	
Sellers’ flag or name, provided they replace same with similar unmarked items. Library, forms, etc.,

	
166

	
exclusively for use in the Sellers’ vessel(s), shall be excluded without compensation. Captain’s,

	
167

	
Officers’ and Crew’s personal belongings including the slop chest are to be excluded from the sale, and company system such as HSEQ system, VIS, PMS and IT system

	
168

	
as well as the following additional items (including items on hire) :

	
169

	
 

Following to be excluded from the sale

- Original Certificate of Ship’s Registry / Original Radio Station License

- Original MSMC, SMC / ISSC, SSA / SSP

- DOC / ISO 9001, 18001

- Original of P&I / H&M / Bunker Convention Cert.

	

	
  - Manning contract and all personal certificates of crew members /ITF Cert

- GMDSS / EPIRB Maintenance Contract

- Log Book / Oil Record Book / Garbage Record Book

- HSEQ Manual / HSEQ File and Record

- Computer Data & Software

- KR-Con USB

- Personnel effects

- Seller’s own commodities and supplies with logo

 

Hired item

- DVD, Video for training and CD player

- CBT(Computer Based Training) Computer & accessories

- Gas bottle (Oxy x 6, Ace x 3, Freon x 4)

	
 

	
 

	
 

	
The Buyers shall take over the remaining bunkers and unused lubricating oils in storage tanks and

	
170

	
sealed drums and pay the Sellers’ last nett purchase current net market price (excluding barging expenses) as evidenced by copies of invoices. at the port and date

	
171

	
of delivery of the Vessel.

	
172

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

	
173

	
the Purchase Price.

	
174

	
The Seller warrants that the Vessel will be delivered with adequate bunkers and lubricants to reach the next available bunkering port where bunkers and lubricants are available.

	
175

 

8. Documentation

	
The place of closing is to be advised by the Sellers with the cost to be equally between the Buyers and the Sellers.

	
176

	
 

	
 

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

 

At the time of delivery/closing the Buyers and the Sellers are to provide each other with a list of delivery documents as reasonably required from each other.. This list is to be mutually agreed and then incorporated into this Agreement as an Addendum. The delivery documents Addendum shall be agreed as soon as possible after signing this Agreement but no later than 14 days prior to the expected date of delivery of the Vessel. Proforma documents are to be exchanged at least 7 days prior to closing, if practicable.

 

	
177

	
documents, namely:

	
178

	
a)

	
Legal Bill of Sale in a form recordable in                   (the country in which the Buyers are

	
179

	
 

	
to register the Vessel), warranting that the Vessel is free from all encumbrances, mortgages

	
180

	
 

	
and maritime liens or any other debts or claims whatsoever, duly notarially attested and

	
181

	
 

	
legalized by the consul of such country or other competent authority.

	
182

	
 

	
 

	
 

	
b)

	
Current Certificate of Ownership issued by the competent authorities of the flag state of

	
183

	
 

	
the Vessel.

	
184

	
 

	
 

	
 

	
c)

	
Confirmation of Class issued within 72 hours prior to delivery.

	
185

	
 

	
 

	
 

	
d)

	
Current Certificate issued by the competent authorities stating that the Vessel is free from

	
186

	
 

	
registered encumbrances.

	
187

	
e)

	
Certificate of Deletion of the Vessel from the Vessel’s registry or other official evidence of

	
188

	
 

	
deletion appropriate to the Vessel’s registry at the time of delivery, or, in the event that the

	
189

	
 

	
registry does not as a matter of practice issue such documentation immediately, a written

	
190

	
 

	
undertaking by the Sellers to effect deletion from the Vessel’s registry forthwith and furnish a

	
191

	
 

	
Certificate or other official evidence of deletion to the Buyers promptly and latest within 4

	
192

	
 

	
(four) weeks after the Purchase Price has been paid and the Vessel has been delivered.

	
193

	
 

	
 

	
 

	
f)

	
Any such additional documents as may reasonably be required by the competent authorities

	
194

	
 

	
for the purpose of registering the Vessel, provided the Buyers notify the Sellers of any such

	
195

	
 

	
documents as soon as possible after the date of this Agreement.

	
196

	
At the time of delivery the Buyers and Sellers shall sign and deliver to each other a Protocol of

	
197

	
Delivery and Acceptance confirming the date and time of delivery of the Vessel from the Sellers to the

	
198

	
Buyers.

	
199

	
 

	
 

	
At the time of delivery the Sellers shall hand to the Buyers the classification certificate(s) as well as all

	
200

	
plans etc., which are on board the Vessel. Other certificates which are on board the Vessel shall also

	
201

	
be handed over to the Buyers unless the Sellers are required to retain same, in which case the

	
202

	
Buyers to have the right to take copies. Other technical documentation which may

	
203

	
be in the Sellers’ possession shall be promptly forwarded to the Buyers at their expense, if they so

	
204

	
request. The Sellers may keep the Vessel’s log books but the Buyers to have the right to take

	
205

	
copies of same.

	
206

	
9.

	
Encumbrances

	
207

	
The Sellers warrant that the Vessel, at the time of delivery, is free from all charters, encumbrances,

	
208

	
mortgages and maritime liens or any other debts whatsoever. The Sellers hereby undertake

	
209

	
to indemnify the Buyers against all consequences of claims made against the Vessel which have

	
210

	
been incurred prior to the time of delivery.

	
211

	
10.

	
Taxes, etc.

	
212

	
Any taxes, fees and expenses in connection with the purchase and registration under the Buyers’ flag

	
213

	
shall be for the Buyers’ account, whereas similar charges in connection with the closing of the Sellers’

	
214

	
register shall be for the Sellers’ account.

	
215

 

	
11.

	
Condition on delivery

	
216

	
The Vessel with everything belonging to her shall be at the Sellers’ risk and expense until she is

	
217

	
delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be

	
218

	
delivered and taken over as she was at the time of inspection, fair wear and tear excepted.

	
219

	
However, The Vessel shall be delivered and taken over with her class maintained without condition/recommendation*,

	
220

	
free of average damage affecting the Vessel’s class, and with her classification certificates and

	
221

	
National/international certificates, as well as all other certificates the Vessel had at the time of inspection, valid and

	
222

	
unextended for a minimum period of 3(three) months without condition/recommendation* by Class or the relevant authorities at the time of delivery.

	
223

	
 

	
224

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

	
225

	
applicable, or the Buyers’ inspection prior to the signing of this Agreement. If the Vessel is taken over

	
226

	
without inspection, the date of this Agreement shall be the relevant date.

	
227

	
*

	
Notes, if any, in the surveyor’s report which are accepted by the Classification Society

	
228

	
 

	
without condition/recommendation are not to be taken into account.

	
229

	
12.

	
Name/markings

	
230

	
Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel markings.

	
231

	
13.

	
Buyers’ default

	
232

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

	
233

	
Agreement, and they shall be entitled to claim compensation for their losses and for all expenses

	
234

	
incurred together with interest.

	
235

	
Should the Purchase Price not be paid in accordance with Clause 3, the Sellers have the right to

	
236

	
cancel the Agreement, in which case the deposit together with interest earned shall be released to the

	
237

	
Sellers. If the deposit does not cover their loss, the Sellers shall be entitled to claim further

	
238

	
compensation for their losses and for all expenses incurred together with interest.

	
239

	
14.

	
Sellers’ default

	
240

	
Should the Sellers fail to give Notice of Readiness in accordance with Clause 5 a) or fail to be ready

	
241

	
to validly complete a legal transfer by the date stipulated in line 61 the Buyers shall have

	
242

	
the option of cancelling this Agreement provided always that the Sellers shall be granted a

	
243

	
maximum of 3 banking days after Notice of Readiness has been given to make arrangements

	
244

	
for the documentation set out in Clause 8. If after Notice of Readiness has been given but before

	
245

	
the Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not

	
246

	
made physically ready again in every respect by the date stipulated in line 61 and new Notice of

	
247

	
Readiness given, the Buyers shall retain their option to cancel. In the event that the Buyers elect

	
248

	
to cancel this Agreement the deposit together with interest earned shall be released to them

	
249

	
immediately.

	
250

	
Should the Sellers fail to give Notice of Readiness by the date stipulated in line 61 or fail to be ready

	
251

	
to validly complete a legal transfer as aforesaid they shall make due compensation to the Buyers for

	
252

	
their loss and for all expenses together with interest if their failure is due to proven

	
253

	
negligence and whether or not the Buyers cancel this Agreement.

	
254

	
15.

	
Buyers’ representatives

	
255

	
After this Agreement has been signed by both parties and the deposit has been lodged, the Buyers

	
256

	
have the right to place two representatives on board the Vessel at their sole risk and expense. upon

	
257

	
arrival at                                         on or about

	
258

	
These representatives are on board for the purpose of familiarization and in the capacity of

	
259

	
observers only, and they shall not interfere in any respect with the operation of the Vessel. The

	
260

	
Buyers’ representatives shall sign the Sellers’ letter of indemnify prior to their embarkation.

These representatives shall pay USD 20 per day per man for victualling and accommodation as well as actual cost for the use of communication appliances onboard. All the relevant fees/charges to be paid to the Sellers upon delivery.

	
261

	
16.

	
Arbitration

	
262

	
a)*

	
This Agreement shall be governed by and construed in accordance with English law and

	
263

	
 

	
any dispute arising out of this Agreement shall be referred to arbitration in London in

	
264

	
 

	
accordance with the Arbitration Acts 1950 and 1979 1996 or any statutory modification or

	
265

	
 

	
re-enactment thereof for the time being in force, one arbitrator being appointed by each

	
266

	
 

	
party. On the receipt by one party of the nomination in writing of the other party’s arbitrator,

	
267

	
 

	
that party shall appoint their arbitrator within fourteen days, failing which the decision of the

	
268

	
 

	
single arbitrator appointed shall apply. If two arbitrators properly appointed shall not agree

	
269

	
 

	
they shall appoint an umpire whose decision shall be final.

	
270

	
 

	
 

	
 

	
b)*

	
This Agreement shall be governed by and construed in accordance with Title 9 of the

	
271

	
 

	
United States Code and the Law of the State of New York and should any dispute arise out of

	
272

	
 

	
this Agreement, the matter in dispute shall be referred to three persons at New York, one to

	
273

	
 

	
be appointed by each of the parties hereto, and the third by the two so chosen; their

	
274

	
 

	
decision or that of any two of them shall be final, and for purpose of enforcing any award, this

	
275

	
 

	
Agreement may be made a rule of the Court.

	
276

	
 

	
The proceedings shall be conducted in accordance with the rules of the Society of Maritime

	
277

	
 

	
Arbitrators, Inc. New York.

	
278

	
 

	
 

	
 

	
c)*

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

	
279

	
 

	
                                                                 , subject to the procedures applicable there.

	
280

	
 

	
The laws of                                              shall govern this Agreement.

	
281

	
 

	
 

	
 

	
*

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

	
282

	
 

	
deletions, alternative 16 a) to apply.

	
283

17.

At the time of delivery the Sellers shall confirm in writing that the Vessel has not been blacklisted by any league, nation or organization.

18.

All details of this sale are to be kept strictly private and confidential by both parties and not to be discussed with any unrelated third parties. This provision shall not apply to Bankers, consultants and others on a "need to know" basis. However, should, despite the best efforts of all parties involved, details of this sale become known or reported on the market, neither the Sellers nor the Buyers have the right to withdraw or to fail to fulfill all their obligations under the agreed contract.  Buyers will be required to disclose the transaction after MOA's are signed and any subjects lifted.

	
For and on behalf of The Sellers

		
For and on behalf of The Buyers

	
Harmony Shipholding S.A.

		
Baltic Lion Limited

	
/s/ Jung Hyun Kim

		
/s/ John Wobensmith

	
	
Title:  Jung Hyun Kim

		
Title:  John Wobensmith

	
	
Name:   President

		
Name:  President

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