Document:

ex102to8k06937_11192008.htm

    Exhibit
10.2

     

    AGREEMENT

    

    THIS
AGREEMENT (the “Agreement”) is made as of the 19th day of November, 2008 (the
“Effective Date”) by and between Riviera Holdings Corporation, a Nevada
corporation (the “Company”), and the investor set forth on the signature page
affixed hereto (the “Investor”).

    

    WHEREAS,
the Investor wishes to purchase from time to time (collectively, the
“Acquisition”) from the Company or a seller or sellers other than the Company
such number of shares of the Company’s common stock, par value $.001 per share
(the “Common Stock”), that would increase the Investor’s total holdings of
Common Stock up to an amount that equals, but does not exceed, fifteen percent
(15%) of the Company’s Outstanding Voting Securities;

    

    WHEREAS,
the Company wishes to grant certain waivers to the Investor in order to permit
the Acquisition pursuant to the terms and conditions set forth in this
Agreement; and

    

    WHEREAS,
as consideration for the granting of certain waivers to the Investor to permit
the Acquisition, the Investor agrees to certain limitations on its ownership of
Common Stock, as provided herein.

    

    NOW, THEREFORE, in consideration of the
mutual promises made herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

    

    1.           Board
Approvals.  The board of directors of the Company (the “Board”)
has, in connection with the Acquisition, (a) waived, in accordance with
subsection 7(g) of Article III of the Company’s Articles of Incorporation (the
“Articles”), and by the requisite majority as provided therein, the voting
limitation set forth in subsection 7(b) of Article III of the Articles with
respect to the Investor Group, and (b) approved the Acquisition in accordance
with the provisions of subsection 78.438(1) of Title 7 of the Nevada Revised
Statutes.

     

    2.           
Ownership
Limitation.  The Investor hereby agrees not to, and that no
member of the Investor Group will, and each will cause its Affiliates not to,
directly or indirectly, acquire (other than Equity Securities distributed or
issued, directly or indirectly, with respect to Equity Securities then held by
the Investor Group, or the exercise or conversion of any Equity Securities
described in this parenthetical) any Equity Securities, or otherwise become part
of a group (that would be deemed to be a “person” by Section 13(d)(3) of the
1934 Act, as in effect on the date hereof, with respect to securities of the
Company), if immediately after giving effect to such acquisition or group
formation, the Investor Group, or any group of which it is a part, would have
beneficial ownership (as defined in Rule 13d-3 of the Securities Exchange Act of
1934, as amended (the “1934 Act”), as in effect on the date hereof) of Voting
Securities in excess of fifteen percent (15%) (the “Maximum Limit”) of the
Outstanding Voting Securities, unless specifically approved in writing by the
Board; provided, however, that the
Investor Group will not be in violation of this provision by virtue of (x) the
expiration, termination or cancellation of (i) Convertible Securities or (ii)
Rights to Purchase Voting Securities; (y) a share repurchase or other action
taken by the Company to reduce, or which has the effect of reducing, the number
of shares of Outstanding Voting Securities or votes per share of
then-Outstanding Voting Securities; or (z) the acquisition of any Voting
Securities so long as such acquisition would not trigger the voting limitations
set forth in subsection 7 of Article III of the Articles (as such Articles are
amended, amended and restated or otherwise modified from time to time) assuming,
for the purpose of this clause (z), that the Investor Group had not obtained the
waiver granted to it in Section 1(a) hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.           Standstill.  During
the Standstill Period, the Investor hereby agrees not to, and that no member of
the Investor Group will, and each will cause its Affiliates not to, directly or
indirectly:

     

    (a)           solicit
proxies or become a participant in a proxy solicitation with respect to any
securities of the Company; or

     

    (b)           submit
a proposal for, or offer in respect of (with or without conditions) any merger,
consolidation, business combination, tender or exchange offer, restructuring,
liquidation, recapitalization, dissolution or similar transactions or other
extraordinary transaction of or involving the Company or any of its subsidiaries
or its Equity Securities or assets (or make any public announcement with respect
to the foregoing) unless such action (i) is specifically requested in writing by
the Board prior to the making of such announcement, proposal or offer or (ii) is
made to the Board on a confidential basis and provides that (A) it may not be
consummated unless it is (1) approved by a majority of Outstanding Voting
Securities not beneficially owned by the Investor Group and (2) determined by
the independent directors of the Board to be fair to the shareholders of the
Company and (B) unless the transaction is a tender offer for all shares of
Common Stock or an offer for the entire Company, it is accompanied by an
undertaking that, if the conditions in clause (A) are satisfied, such person
will offer to acquire all shares of Common Stock still outstanding after
completion of a transaction, if any, at the same price per share paid in such
transaction.

     

    4.           Voting Limitation.
The Investor hereby
agrees at any meeting of the stockholders of the Company (or any action by prior
written consent) after the date hereof and at which any member of the Investor
Group is entitled to vote, no member of the Investor Group shall, as of any
record date for the determination of stockholders of the Company entitled to
vote on such matter, have the right to vote, vote or cause the voting of shares
of Voting Securities, in person or by proxy or through any voting agreement,
plan or other arrangement, representing in the aggregate more than the maximum
number of Voting Securities permitted to be acquired by the Investor Group under
Section 2 hereof. 

     

    5.           Gaming
Approvals.

     

    (a)           Investor
shall apply for, obtain and maintain all regulatory approvals required as a
result of the transactions anticipated by this Agreement including, but not
limited to, any approvals that may be required from the Nevada and Colorado
gaming authorities. Should Investor not so apply, obtain or maintain any such
required approvals, or should the Investor be found unsuitable by any such
regulating body to obtain and/or hold the Common Stock, Investor shall promptly
divest itself of its holdings of Common Stock acquired in the Acquisition and
the Maximum Limit shall be deemed to be 10%, or to such lower level of ownership
otherwise mandated or recommended by any applicable gaming
authorities.  Notwithstanding the foregoing, so long as Investor is
diligently pursuing such approvals in good faith, and has not been found
“unsuitable” or other similar designation or finding by any gaming regulatory
body, then, except as required by applicable law, the limitations contained in
this Section 5 shall not be effective.

     

    
      
         

      

      
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    (b)           The
Investor hereby represents and warrants that neither it nor any member of the
Investor Group has ever been found “unsuitable” or other similar designation or
finding by any gaming regulatory body.

     

    

    6.           Enforcement.

     

    (a)           Each
party hereto acknowledges that the other party hereto would not have an adequate
remedy at law for money damages in the event that any of the covenants or
agreements of any of the other party in this Agreement were not performed in
accordance with its terms, and it is therefore agreed that each party hereto, in
addition to and without limiting any other remedy or right it may have, will
have the right to an injunction or other equitable relief in any court of
competent jurisdiction, enjoining any such actual or potential breach and
enforcing specifically the terms and provisions hereof, and each of the Company
and each party hereto hereby waives (i) any and all defenses they may have on
the ground of lack of jurisdiction or competence of the court to grant such an
injunction or other equitable relief and (ii) the need to post any bond that may
be required in connection with the granting of such an injunction or other
equitable relief.

     

    (b)           All
rights, powers and remedies provided under this Agreement or otherwise available
in respect hereof at law or in equity shall be cumulative, including without
limitation, the provisions contained in Section 4 hereof, and not alternative,
and the exercise or beginning of the exercise of any thereof by any party hereto
shall not preclude the simultaneous or later exercise of any other such right,
power or remedy by such party.  For purposes of clarity, the
provisions of Section 2 hereof shall be separately enforceable by the Company
irrespective of the provisions of Section 4 hereof.

     

    7.           Successors and
Assigns.  This Agreement may not be assigned without the prior
written consent of the Company and the Investor.  The provisions of
this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties hereto.  Nothing in
this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

     

    8.           Counterparts;
Faxes.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.  This Agreement
may also be executed via facsimile, which shall be deemed an
original.

     

    9.           Titles and
Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

     

    
      
         

      

      
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    10.           Notices.  Unless
otherwise provided, any notice required or permitted under this Agreement shall
be given in writing and shall be deemed effectively given as hereinafter
described (i) if given by personal delivery, then such notice shall be deemed
given upon such delivery, (ii) if given by telex or telecopier, then such notice
shall be deemed given upon receipt of confirmation of complete transmittal,
(iii) if given by mail, then such notice shall be deemed given upon the earlier
of (A) receipt of such notice by the recipient or (B) five days after such
notice is deposited in first class mail, postage prepaid, and (iv) if given by
an internationally recognized overnight air courier, then such notice shall be
deemed given one business day after delivery to such carrier.  All
notices shall be addressed to the party to be notified at the address as
follows, or at such other address as such party may designate by ten days’
advance written notice to the other party:

     

    

    If to the Company:

    

    Riviera
Holdings Corporation

    2901 Las
Vegas Boulevard South

    Las
Vegas, Nevada 89109

    Attention:  Secretary
and General Counsel

    Fax:  (702)
794-9560

    

    With a copy to:

    

    Olshan
Grundman Frome Rosenzweig & Wolosky LLP

    Park
Avenue Tower, 65 East 55th Street

    New York,
New York 10022

    Attention:  Adam
W. Finerman, Esq.

    Fax:  (212)
451-2222

    

    If to the Investor:

    

    Desert Rock Enterprises
LLC

    3960
Howard Hughes Parkway, Suite 562

    Las
Vegas, NV 89169

    Attention:  Derek
Stevens

    Fax:
(586) 497-7090

    

    With a
copy to:

    

    Snell
& Wilmer L.L.P.

    3883
Howard Hughes Parkway, Suite 1100

    Las
Vegas, NV 89169

    Attention:
P. Gregory Giordano

    Fax:
(702) 784-5252

     

    
      
         

      

      
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    11.           Amendments and
Waivers.  Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only with the
written consent of the Company and the Investor.  Any amendment or
waiver effected in accordance with this Section 11 shall be binding upon the
Company and the Investor.

     

    12.           Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof but shall be interpreted as if it were written so as to be
enforceable to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.  To the
extent permitted by applicable law, the parties hereto hereby waive any
provision of law which renders any provision hereof prohibited or unenforceable
in any respect.

     

    13.           Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial.  This Agreement shall be
governed by, and construed in accordance with, the internal laws of the State of
Nevada without regard to the choice of law principles thereof.  Each
of the parties hereto irrevocably submits to the exclusive jurisdiction of the
courts of the State of Nevada and any federal court sitting in the State of
Nevada for the purpose of any suit, action, proceeding or judgment relating to
or arising out of this Agreement and the transactions contemplated
hereby.  Service of process in connection with any such suit, action
or proceeding may be served on each party hereto anywhere in the world by the
same methods as are specified for the giving of notices under this
Agreement.  Each of the parties hereto irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to the
laying of venue in such court.  Each party hereto irrevocably waives
any objection to the laying of venue of any such suit, action or proceeding
brought in such courts and irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an
inconvenient forum.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

     

    14.           Definitions. For
purposes of this Agreement, the following terms have the following
meanings:

     

    “Affiliate” has the meaning assigned in
Rule 405 under the Securities Act of 1933, as amended (the “1933 Act”), as in
effect on the date hereof.

    

    “Control” has the meaning given to that
term under Rule 405 under the 1933 Act, as in effect on the date hereof (and
“Controlled” and “Controlling” shall have correlative meanings); provided, however, that no
Person shall be deemed to Control another Person solely by his or her status as
a director of such other Person.

    

    “Convertible Securities” means
securities of the Company that are convertible or exchangeable (whether
presently convertible or exchangeable or not) into Voting
Securities.

     

    
      
         

      

      
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    “Equity Securities” means Voting
Securities, Convertible Securities and Rights to Purchase Voting
Securities.

    

    “Investor Group” means (i) the
Investor, (ii) any Affiliate of the Investor and (iii) any group (that would be
deemed to be a “person” by Section 13(d)(3) of the 1934 Act, as in effect on the
date hereof, with respect to securities of the Company) of which the Investor or
any Person directly or indirectly Controlling or Controlled by the Investor is a
member.  Without limiting the generality of the foregoing, Affiliate
of the Investor shall include any fund or holding company that may be formed for
investment purposes that is managed pursuant to a contractual arrangement to
offer advice by Desert Rock Enterprises LLC (“Desert Rock”) or any separate
account managed by Desert Rock.

    

    “Outstanding Voting Securities” means
at any time the then-issued and outstanding Voting Securities based on the
latest information reported by the Company in its filings with the Securities
and Exchange Commission.

    

    “Person”
means any individual, corporation, partnership, trust or other entity or group
(within the meaning of Section 13(d)(3) of the 1934 Act, as in effect on the
date hereof).

    

    “Rights
to Purchase Voting Securities” means options, warrants and rights issued by the
Company (whether presently exercisable or not) to purchase Voting Securities or
Convertible Securities.

    

    “Standstill
Period” means the period beginning on the Effective Date and ending on the first
date to occur of: (i) the day following the completion of the Company’s 2010
regular Annual Meeting of Stockholders, (ii) September 1, 2010 and (iii) the
ending of any period during which any other investor is subject to a similar
standstill as set forth in Section 3 hereof.

    

    “Voting
Securities” means the Common Stock and any other securities of the Company of
any kind or class having power generally to vote for the election of
directors.

    

    [Signature
page follows]

     

    
      
         

      

      
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    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement or caused their duly authorized
officers to execute this Agreement as of the date first above
written.

    

    
      	
              RIVIERA
      HOLDINGS CORPORATION

               

            	 
      	
              DESERT
      ROCK ENTERPRISES LLC

            
	 
      	 
      	 
      
	
              By:

            	
              
                /s/
      Phillip Simons

              

            	 
      	
              By:

            	
              
                /s/ Derek Stevens

              

            
	 
      	
              Name:

            	
              Phillip
      Simons

            	 
      	 
      	
              Name:

            	
              Derek
      Stevens

            
	 
      	
              Title:

            	
              CFO

            	 
      	 
      	
              Title:

            	
              Chief
      Executive Officerc55676_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

TIME CHARTER 

2003 Standard Form 

Issued by China Maritime Arbitration Commission (CMAC)

THIS CHARTER PARTY, made and concluded in SHANGHAI this 26th day of July, 2008 

Between KRIKOR MARITIME S.A. of Marshall Islands

Owners of the Vessel described
below, and YONGCHEN INTERNATIONAL SHIPPING LIMITED 

Charterers. 

DESCRIPTION OF VESSEL: 

Name: AGIOS SPYRIDON  

Flag: Sierral Leone  Built (year): 1984 

Port and number of Registry: Freetown  

Classed International Register of Shipping in  

Deadweight 7405 metric tons (cargo and bunkers, including freshwater and stores not exceeding what is reasonable for each voyage metric tons) on a salt water draft of 2397 mm on summer freeboard. 

Tonnage: 4809 GRT. 

Speed about 13.5 knots 

1. Duration 

The Owners agree to let and the Charterers agree to hire the Vessel from the time of August 1, 2008 for a period of 1 year plus 1 year plus 1 year in Charterers’s option up to 15 days more or less on final period
within below mentioned trading limits.  

2. Delivery 

The vessel shall be placed at the disposal of the Charterers at Zhangjiagang port, China the vessel on her delivery shall be ready to receive cargo with clean - swept holds and tight, staunch, strong and in every way
fitted for ordinary cargo service, having water ballast and with sufficient power to operate all cargo- handling gear simultaneously.  

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3. On-Off Hire Survey

Prior to delivery and redelivery the parties shall, unless otherwise agreed, each appoint surveyors, for their respective accounts, who shall not later than a first loading port/last discharging port respectively,
conduct joint on -hire /off -hire surveys, for the purpose of ascertaining quantity of bunkers on board and the condition of the Vessel. A single report shall be prepared on each occasion and signed by each surveyor, without prejudice to his right
to file a separate report setting forth items upon which the surveyors cannot agree. If either party fails to have a representative attend the survey and sign the joint survey report, such party shall nevertheless be bound for all purposes by the
findings in any report prepared by the other party. On -hire survey shall be on Charterers' time and off hire survey on Owners' time. 

4. Dangerous Cargo/Cargo Exclusions  

(a) The vessel shall be employed in carry lawful merchandise excluding any goods of a dangerous, injurious, flammable or corrosive nature unless carried in accordance with the requirements or recommendations of the
competent authorities of the country of the Vessel's registry and of ports of shipment and discharge and of any intermediate countries or ports through whose waters the Vessel must pass. Without prejudice to the generality of the foregoing, in
addition the following are specifically excluded: livestock of any description, arms, ammunition, explosives, nuclear and radioactive materials. 

(b)If IMO- classified cargo is agreed to be carried, and the Charterers shall provide the Master with any evidence he may reasonably stowed in accordance with IMO regulations, failing which the Master is entitled to
refuse such cargo or, if already loaded, to unload it at the Charterers' risk and expense. 

5. Trading Limits 

The vessel shall be employed in such lawful trades between safe ports and safe places within China/South-Asia,India, Pakistan, Bengal, Papua new guinea as the Charterers shall direct. 

6. Owners to Provide  

The Owners shall provide any pay for the insurance of the Vessel, except as otherwise provided, and for al provisions, cabin, deck, engine-room and other necessary stores, including boiler water; shall pay for wages,
consular shipping and discharging fees of the crew and charges for port services pertaining to the crew; shall maintain the vessel's class and keep her in a thoroughly efficient state in hull, machinery and equipment for and during the service, and
have a full complement of officers and crew.  Owners guarantee the Vessel is fully covered by P&I Club, Charterers have the benefit of Owners’ P&I Club as far as its rules permit. 

7. Charterers to provide 

The Charterers, while the vessel in on hire, shall provide and pay for all the bunkers except as otherwise agreed; shall pay for port charges (including compulsory watchmen and cargo watch men and compulsory

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garbage disposal), all communication expenses pertaining to the Charterers' business at cost, pilotages, towages, agencies, commissions, consular charges(except those pertaining to individual crew members or flag of
the Vessel), and all other usual expenses except those stated in Clause 6, but when the Vessel puts into a port for causes for which the Vessel is responsible (other than by stress of weather), then all such charges incurred shall be paid by the
Owners. Fumigations ordered because of illness of the crew shall be for the Owners' account. Fumigations ordered because of cargoes carried or ports visited while the vessel is employed under this Charter Party shall be for the Charterers' account.
The Charterers shall provide and pay for necessary dunnage and also any extra fittings requisite for a special trade or unusual cargo, but the Owners shall allow them the use of any dunnage already aboard the Vessel. Prior to redelivery the
Charterers shall remove their dunnage and fittings at their cost and in their time. 

8. Performance of Voyages  

(a) The Master shall perform the voyages with due dispatch, and shall render all customary assistance with the Vessel's crew. The Master shall be conversant with eth English language and (although appointed by the
Owners) shall be under the orders and directions of the Charterers as regards employment and agency; and the Charterers shall perform all cargo handling, including but not limited to loading, stowing, trimming, lashing, securing, dunnaging,
unlasing, discharging, and tallying, at their risk and expense, under the supervision of the Master. 

(b) If the Charterers shall have reasonable cause to be dissatisfied with the conduct of the Master or officers, the Owners shall, on receiving particulars of the complaint, investigate the same, and, if required by
the Charterers or if necessary, make a change in the appointments.  

9. Bunkers

(a)  Intentionally omitted. 

(b) The Charterers shall supply bunkers of a quality suitable for burning in the vessel's engines and auxiliaries and which conform to the specification(s).  The Owners reserve their right to make a claim against the Charterers for any damage to the main engines or the auxiliaries caused by the use of unsuitable fuels or fuels not
complying with the agreed specification(s). additionally, if bunker fuels supplied do not conform with the mutually agreed specification(s) or otherwise prove unsuitable for burning in the Vessel's engines or auxiliaries, the Owners shall not be
held responsible for any reduction in the Vessel's speed performance and /or increased bunker consumption, nor for any time lost and any other consequences.  

9. Rate of Hire/Redelivery Areas and Notices 

The Charterers shall pay for the use and hire of the said Vessel at the rate of USD 4,500 per day, commencing on and from the day of her delivery, as aforesaid, and at and after the same rate for any part of
a

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month; hire shall continue until the hour of the day of her redelivery in like good order and condition, ordinary wear and tear excepted, to the Owners (unless Vessel lost) at Zhangjiagang port, China unless otherwise
mutually agreed.  The Charterers shall give the Owners not less than seven days notice of the Vessel's expected date and probable port of redelivery.  For the purpose of hire calculations, the times of delivery, redeliver or termination of charter
shall be adjusted to GMT. 

11. Hire Payment

 (a) Payment 

Payment of Hire shall be made so as to be received by the Owners or their designated payee in bank account which owners appointed in United States Currency, in funds available to the Owners on the due date, 15 days in
advance, and for the last month or part of same the approximate amount of hire, and should same not cover eth actual time, hire shall be paid for eth balance day by day as it becomes due, if so required by the Owners. Failing the punctual and
regular payment of the hire, or on any fundamental breach whatsoever of this Charter Party, the Owners shall be at liberty to withdraw the Vessel from the service of the Charterers without prejudice to any claims they (the Owners) may otherwise have
on the Charterers. 

At any time after the expiry of the grace period provided in Sub-clause 11 (b) hereunder and while the hire is outstanding, the Owners shall, without prejudice to the liberty to withdraw, be entitled to withhold the
performance of any and all of their obligations hereunder and shall have no responsibility whatsoever for any consequences thereof, in respect of which the Charterers hereby indemnify the Owners, and hire shall continue to accrue and any extra
expenses resulting from such withholding shall be for the Charterers' account. 

(b) Grace Period 

Where there is failure to-make punctual and regular payment of hire due to oversight, negligence, errors or omissions on the part of the Charterers of their bankers, the Charterers shall be given by the Owners seven
clear banking days (as recognized at the agreed place of payment) written notice to rectify the failure, and when so rectified within those seven days following the Owner's notice, the payment shall stand as regular and punctual. 

Failure by the Charterers to pay the hire within seven days of their receiving the Owners' notice as provided herein, shall entitle the Owners to withdraw as set forth in Sub-clause 11 (a) above. 

(c) Last Hire Payment 

Should the Vessel be on her voyage towards port of redelivery at the time the last and/or the penultimate payment of hire is/are due, said payment(s) is/are to be made for such length of time as the Owners and the
Charterers may agree upon as being the estimated time necessary to complete the voyage, and taking into account bunkers actually on board; to be taken over by the Owners and estimated disbursements for the Owners' account before redelivery. Should
same not cover the actual time, hire is to be paid for the balance,

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day by day, as it becomes due. When the Vessel has been redelivered, any difference is to be refunded by the Owners or paid by the Charterers, as the case may be. 

(d) Cash Advances 

Cash for the Vessel's ordinary disbursements at any port may be advanced by the Charterers, as required by the Owners, subject to 2.5 percent commission and such advances shall be deducted from the hire. The
Charterers, however, shall in no way be responsible for the application of such advances. 

12. Berths 

The Vessel shall be loaded and discharged in any safe dock or at any safe berth or safe place that Charterers or their agents may direct, provided the Vessel can safely enter, lie and depart always afloat at any time
of tide. 

13. Spaces Available 

(a) The whole reach of the Vessel's holds, decks, and other cargo spaces (not more than she can reasonably and safely stow and carry) , also accommodations for supercargo, if carried, shall be at the Charterers'
disposal, reserving only proper and sufficient space for the vessel" s ott1cers, crew, tackle, apparel, furniture, provisions , stores and fuel. 

(b) In the event of deck cargo being carried, the Owners are to be and are hereby indemnified by the Charterers for any loss and/or damage and/or liability of whatsoever nature caused to the Vessel as a result of the
carriage of deck cargo and which would not have arisen had deck cargo not been loaded. 

14.  Intentionally omitted. 

15. Sailing Orders and Logs

The Charterers shall furnish the Master from time to time with all requisite instructions and sailing directions, in writing in the English language. and the Master shall keep full and correct deck and engine logs of
the voyage or voyages. which are to be patent to the Charterers or their agents, and furnish the Charterers, their agents or supercargo, when required, with a true copy of such deck and engine logs, showing the course of the Vessel,
speed, distance run and the consumption of bunkers. Any log extracts required by the Charterers shall be in the English language. 

16. Delivery/ Cancelling 

If In required by the Charterers, time shall not commence before August 1, 2008 and should the Vessel not be ready for delivery on or before August 1, 2008 the
Charterers shall have the option of cancelling this Charter Party. 

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Extension of Cancelling 

If the Owners warrant that, despite the exercise of due diligence by them, the Vessel will not be ready for delivery by the cancelling date, and provided the Owners are able to state with reasonable certainty the date
on which the Vessel will be ready, they may give a writing notice to propose a new later cancelling date, require the Charterers to declare whether or not they
will cancel the Charter Party. Should the Charters elect not to cancel, or should they fail to reply within three running days or by the cancelling date, whichever shall first occur, then the third day after the expected date of readiness for delivery as notified by the Owners shall replace the original cancelling date. Should the Vessel be further delayed, the Owners
shall be entitled to require further declarations of the Charterers in accordance with this clause. 

17. Off Hire 

In the event of loss time from deficiency and/or default and/or strike of officers or crew, or deficiency of stores, fire, breakdown of, or damages to hull, machinery or equipment, grounding, detention by the arrest of
the Vessel (unless such arrest is caused by events for which the Charterers, their servants, agents or subcontractors are responsible), or detention by average accidents to the Vessel or cargo unless resulting. from inherent vice, quality or defect
of the cargo, dry docking for the purpose of examination or painting bottom, or by any other similar cause preventing the full working of the Vessel, the payment of hire and overtime, if any, shall cease for the time thereby lost. Should the Vessel
deviate or put back during a voyage, contrary to the orders or directions of her Charterers, for any reason other than accident to the cargo or where permitted in Clause 22 hereunder, the hire is to be suspended from the time of her deviating or
putting back until she is again in the same or equidistant position from the destination and the voyage resumed therefrom. All bunkers used by the Vessel while off hire shall be for the Owners' account, the Charterers shall be entitled to claim
compensation for their loss and for all expenses in incurred together with interest. In the event of the Vessel being driven into port or to anchorage through stress of weather, trading to shallow harbors or to rivers or ports with bars, any
detention of the Vessel and/ or expenses resulting from such detention shall before the Charterers' account. If upon the voyage the speed be reduced by defect in, or breakdown of, any part of her hull, machinery or equipment, the time so lost, and
the cost of any extra bunkers consumed in consequence thereof, and all extra proven expenses may be deducted from the hire. Should the vessel be off hire for more than 15 consecutive days or accumulative total more than 30 days, the Charterers shall
have the right to cancel this Charter Party and hire paid in advance is to be immediately refunded by the Owners. The charterers have the option to add on to the Charter period any off hire suffered by the vessel, or if the Charterers require, the
owners should provide same capacity vessel to replace above-vessel as agreed mutually.   

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18. Sublet

The Charterers shall have the liberty sublet the Vessel for all or any part of the time covered by this charter Party, but the Charterers remain responsible for the fulfillment of this Charter Party.  

19. Drydocking 

(a)  Intentionally omitted  

(b) Except in case of emergency no drydocking
shall take place during the currency of this Charter Party.

20. Total Loss 

Should the Vessel be lost, money paid in advance and not earned (reckoning from the date of loss or being last heard of) shall be returned to the Charterers at once. 

21. Exceptions 

The act of God, enemies, fire, restraint of princes, rulers and people, and all dangers and accidents of the seas, rivers, machinery, boilers, and navigation, and errors of navigation throughout this Charter, always
mutually excepted. 

22. Liberties 

The Vessel shall have the liberty to sail with or without pilots, to tow and to be towed, to assist vessels in distress, and to deviate for the purpose of saving .life and property.  

23. Liens 

The Owners shall have a lien upon all cargoes and all sub-freights and/or sub-hire for any amounts due under this Charter Party, including general average contributions, and the Charterers shall have a lien on the
Vessel for all monies paid in advance and not earned, and any overpaid hire or excess deposit to be returned at once. 

The Charterers will not directly or indirectly suffer, nor permit to be continued, ally lien or encumbrance, which might have priority over the title and interest of the Owners in the Vessel. The Charterers undertake
that during the period of this Charter Party, they will not procure any supplies or necessaries or services, including any port expenses and bunkers, on the credit of the Owners or in the Owners' time. 

24. Salvage 

All derelicts and salvage shall be for the Owners' and the Charterers' equal benefit after deducting Owners' and Charterers' expenses and crew's proportion. 

7

25. General Average

General average shall be adjusted according to York-Antwerp Rules 1974, as amended 1990, or any subsequent modification thereof, in Shanghai and settled in US Dollars currency. 

The Charterers shall procure that all bills of lading issued during the currency of the Charter Party will contain a provision to the effect that general average shall be adjusted 'according to York- .Antwerp Rules
1974, as amended 1990, or any subsequent modification thereof and will include the "New Jason Clause" as per Clause 31.  Time charter hire shall not contribute to general average. 

26. Navigation 

Nothing herein stated is to be construed as a demise of the Vessel to the Time Charterers. The Owners shall remain responsible for the navigation of the Vessel, acts of pilots and tug boats, insurance, crew, and all
other matters, same as when trading for their account. 

27. Cargo Gear and Lights 

	The Owners shall maintain the cargo handling
    gear of the Vessel which is as follows:	 
	 
	providing
        gear (for all derricks or cranes) capable of lifting capacity as described.
        The Owners shall also provide on the Vessel for night work lights as
        on board, but all additional lights over those on board shall be at the
        Charterers' expense. The Charterers shall have the use of any gear on
        board the Vessel. If required by the Charterers, the Vessel shall work
        night and day and all cargo handling gear shall be at the Charterers'
        disposal during loading and discharging. In the event of disabled cargo
        handling gear, or insufficient power to operate the same, the Vessel
        is to be considered to be off hire to the extent that time is actually
        lost to the Charterers and the Owners to pay stevedore stand-by charges
        occasioned thereby, unless such disablement or insufficiency of power
        is caused by the Charterers' stevedores. If required by the Charterers,
        the Owners shall bear the cost of hiring shore gear in lieu thereto,
    in which case the Vessel shall remain on hire. 

28. Crew Overtime 

In lieu of any overtime payments to officers and crew of work ordered by the Charterers or their agents, the Charterers shall pay the Owners, concurrently with the hire per month or pro rata. 

29. Bills of Lading 

(a) The Master shall sign the bills of lading or waybills for cargo as presented in conformity with mates or tally clerk's receipts. However, the Charterers may sign bills of lading or waybills on behalf of the Master,
with the Owner's prior written authority, always in conformity with mates or tally clerk's receipts. 

(b) All bills of lading or waybills shall be without prejudice to this Charter Party and the Charterers shall indemnify the Owners against all consequences or liabilities which may arise from any inconsistency
between

8

this Charter Party and any bills of lading or waybills signed by the Charterers or by the Master at their requst. (c) Bill of lading covering deck cargo shall be claused “Shipped on deck at Charterers' , Shippers'
and Receivers' risk, expense and responsibility, without liability on the part of the Vessel , or her Owners for any loss, damage, expense or delay howsoever caused." 

30. Protective Clause 

This Charter Party is subject to the following clauses all of which are also to be included in all bills of lading or waybills issued hereunder: 

(a) CLAUSE PARAMOUNT 

"This bill of lading shall have effect subject to the provisions of the Hague Rules, or the Hague- Visby Rules, as applicable, or such other similar national legislation as may mandatorily apply by virtue of origin or
destination of the bills of lading, which shall be deemed to be incorproated herein and nothing herein contained shall be deemed a surrender by the carrier of any of its rights or immunities or an increase of any of its responsibilities or
liabilities under said applicable Act. If any term of this bill of lading be repugnant to said applicable Act to any extent, such term shall be void to that extent, but not further." 

and

 (b) BOTH- TO-BLAME COLLISION
    CLAUSE 

"If the ship comes into collision with another ship as a result of the negligence of the other ship and any act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in
the management of the ship, the Owners of the goods carried hereunder will indemnify the carrier against all loss or liability to the other or non-carrying ship or her Owners insofar as such loss or liability represents loss of, or damage to, or any
claim whatsoever of the Owners of said goods, paid or payable by the other or non-carrying ship or her Owners to the Owners of said goods and set off, recouped or recovered by the other or non-carrying ship or her Owners to the Owners of said goods
and set off, recouped or recovered by the other or non-carrying ship or her Owners as part of their claim against the carrying ship or carrier. 

The foregoing provisions shall also apply where the Owners, operators or those in charge of any ships or objects other than, or in addition to, the colliding ships or objects are at fault in respect to a collision or
contact."

and 

(c) NEW JASON CLAUSE 

"In the event of accident, danger, damage or disaster before or after the commencement of the voyage resulting from any cause whatsoever, whether due to negligence or not, for which, or for consequences of which, the
carrier is not responsible, by statute, contract, or otherwise, the goods, shippers, consignees, or Owners of the goods shall contribute with the carrier in general average to the payment of any sacrifices, losses, or expenses of a general average
nature that may be made or incurred, and shall pay salvage and 

9

special charges incurred in respect of the goods. 

If a salving ship is owned or operated by the carrier, salvage shall be paid for as fully as if salving ship or ships belonged to strangers. Such deposit as the carrier or his agents may deem sufficient to cover the
estimated contribution of the goods and any salvage and special charges thereon shall , if required be made by the good, shipper, consignees or Owners of the goods to the carrier before delivery." 

and 

(d) U.S. TRADE-DRUG-CLAUSE 

"In pursuance of the provisions of the Criminal Law of the People' Republic of China,Customs Law of the the People' Republic of China and the Decision on Anti Drug Abuse issued by the Standing Committee of the National
People's Congress ,the Charterers warrant to exercise the highest degree of care and diligence in preventing unmanifested narcotic drugs and marijuana to be loaded or concealed on board the Vessel. Non-compliance with the provisions of this clause
shall amount to breach of warranty for consequences of which the Charterers shall be liable and shall hold the Owners, the Master and the crew of the Vessel harmless and shall keep them indemnified against all claims whatsoever which may arise and
be made against them individually or jointly. Furthermore, all time lost and all expenses incurred , including fines as a result of the Charterers' breach of the provisions of this clause shall be for the Charterer's account and the Vessel shall
remain on hire. 

Should the Vessel be arrested as a result of the Charterers' non-compliance with the provisions of this clause, the Charterers shall at their expense take all reasonable steps to secure that within a reasonable time
the Vessel is released and at their expense put up the bails to secure release of the Vessel. 

The Owners shall remain responsible for all time lost and all expenses incurred, including fines, in the event that unmanifested narcotic drugs and marijuana are found in the possession or effects of the Vessel's
personnel." 

and 

(e) WAR CLAUSES 

(i) No contraband of war shall be shipped. The Vessel shall not be required, without the consent of the Owners which shall not be unreasonably withheld, to enter any port or zone which is involved in a state of war, warlike operations, or hostilities, civil strife, insurrection or piracy whether there be a declaration of
war or not, where the Vessel , cargo or crew might reasonably be expected to be subject to capture, seizure or arrest, or to a hostile act by a belligerent power (the term "power" meaning any de jure or defacto authority or any purported
governmental organization maintaining naval, military or air forces). 

31. Intentionally omitted

32. Ice 

The Vessel shall not be required to enter or remain in any icebound port or area, nor any port or area where

10

lights or lightships have been or are about to be withdrawn by reason of ice, nor where there is risk that in the ordinary course of things the Vessel will not be able on account of ice to safely enter and remain in
the port or area or to get out after having completed loading or discharging. Subject to the Owners' prior approval the Vessel is to follow icebreakers when reasonably required with regard to her size, construction and ice class. 

33. Requisition 

Should the Vessel be requisitioned by the government of the Vessel's flag during the period Of this Charter Party, the Vessel shall be deemed to be off hire during the period of such requisition, period any hire paid
by the said government in respect of such requisition period shall be retained by the Owners. The period during which the Vessel is on requisition to the said government shall count as part of the period provided for in this Charter Party.

If the period of requisition exceeds 1 months, either party shall have the option of cancelling this Charter Party and no consequential claim may be made by either party. 

34. Stevedore Damage 

Notwithstanding anything contained herein to the contrary, the Charterers shall pay for any and all damage to the Vessel caused stevedores provided the Master has notified the Charterers and/ their agents in writing as
soon as practical but not later than 48 hours after any damage is discovered. Such notice to specify the damage in detail and to invite Charterers to appoint a surveyor to as the extent of such damage. 

(a) In case of any and all damage(s) affecting the Vessel's seaworthiness and/or the safety of the crew and/or affecting the trading capabilities of the Vessel, the Charterers shall immediately arrange for repairs of
such damage(s) at their expense and the Vessel is remain on hire until such repairs are completed and if required passed by the Vessel's classification society. 

(b) Any and all damage (s) not described under point (a) above shall be repaired at the Charterers' option, before or after redelivery concurrently with the Owners' work. In such case no hire and /or expenses will be
paid to the Owners except and insofar as the time and/or the expenses required for the repairs for which the Charterers are responsible, exceed the time and/or expenses necessary to carry out the Owners' work. 

35. Cleaning of Holds 

The Charterers shall provide and pay extra for sweeping and/or washing and/ or cleaning of holds between voyages and/ or between cargoes provided such work can be undertaken by the crew and is permitted by local
regulations, at the rate of USD 100 per hold. 

In connection with any such operation, the Owners shall not be responsible if the Vessel's holds are not accepted or passed by the port or any other authority. The Charterers shall have the option to re-deliver the
Vessel with unclean/unswept holds against a lumpsum payment of in lieu of cleaning.  

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36. Taxes 

Charterers to pay all local, State, National taxes and/ or dues assessed on the Vessel or the Owners resulting from the Charterers' orders herein, whether assessed during or after the currency of this Charter Party
including any taxes and/or dues on cargo and/or freights and/or sub-freights and/or hire (excluding taxes levied by the country of the flag of the Vessel or the Owners). All dues, duties, charges and/or taxes on the Vessel’s crew and/or stores
are to be for the Owners’ account. 

37. Charterers' Colors 

The Charterers shall have the privilege of flying their own house flag and painting the Vessel with their own markings. The Vessel shall be repainted in the Owners' colors before termination of the Charter Party. Cost
and time of painting, maintaining and repainting those changes effected by the Charterers shall be for the Charterers' account. 

38. Laid Up Returns 

The Charterers shall have the benefit of any return insurance premium receivable the Owners from their underwriters as and when received from underwriters by reason of the Vessel being in port for a minimum period of
30 days if on full hire for this period or pro rata for the time actually on hire. 

39. Documentation 

The Owners shall provide any documentation relating to the Vessel that may be required to permit the Vessel to trade within the agreed trade limits, including, but not limited to certificates of financial
responsibility for oil pollution, provided such oil pollution certificates are obtainable from the Owners' P &. I club, valid international tonnage certificate, Suez and Panama tonnage certificates, valid certificate of registry and certificates
relating to the strength and/or serviceability of the Vessel's gear. 

40. Stowaways 

(a) (i) The Charterers warrant to exercise due care and diligence in preventing stowaways in gaining access to the Vessel by mean of secreting away in the goods and/ or containers shipped by the Charterers. 

(ii) If, despite the exercise of due care and diligence by the Charterers, stowaways have gained access to the Vessel by means of secreting away in the goods and/ or containers shipped by the Charterers, this shall
amount to breach of charter for the consequences of which the Charterers shall be liable and shall hold the Owners harmless and shall keep them indemnified against all claims whatsoever which may arise and be made against them. Furthermore, all time
lost and all expenses whatsoever and howsoever incurred, including fines, shall be for the Charterers' account and the Vessel shall remain on hire. 

12

(iii) Should the Vessel be arrested as a result
of the Charterers' breach of charter according to sub-clause (a) (ii) above the
Charterers shall take all reasonable steps to secure that, within a reasonable
time, the  Vessel is released and at their
expense put up bail to secure release of the Vessel. 

(b) (i) If, despite the exercise of due care and diligence by the Owners, stowaways have gained access to the Vessel by means other than secreting away in the goods and/or containers shipped by the Charterers, all time
lost and all expenses whatsoever and howsoever incurred, including fines, shall be for the Owners' account and the Vessel shall be off hire. 

(ii) Should the Vessel be arrested as a result of stowaways having gained access to the Vessel by means other than secreting away in the goods and/or containers shipped by the Charterers. the Owners shall take all
reasonable steps to secure that. within a reasonable time. the Vessel is released and at their expense put up bail to secure release of the Vessel. 

41. Smuggling 

In the event of smuggling by the Master, Officers and/or Crew, the Owners shall bear the cost of any fines. Taxes, or imposts levied and the Vessel shall be off hire for any time lost as a result thereof. 

42. Intentionally omitted

43. Intentionally omitted

44. Arbitration  

Any dispute arising from or in connection with this contract shall be submitted to China Maritime Arbitration Commission for arbitration which shall be conducted in accordance with the Commission’s arbitration
rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon both parties. 

If mutually agreed, clauses to, both inclusive, as attached hereto are fully incorporated in this Charter Party. 

	 	 	 
	 	 	 
	
Owners  	   	
Charterers  
	 	 	 
	 	 	 
	
KRIKOR MARITIME S.A.  	   	
YONGCHEN INTERNATIONAL SHIPPING LIMITED  
	 	 	 
	 	 	 
	
Nicholas Leopoulos  	   	
  Zhang Xinyu  

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