Document:

exh_4-10.htm

Exhibit 4.10

	
MEMORANDUM OF AGREEMENT

 

 

Dated:  19th April, 2010

	  	
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.

	
FRISIA SCHIFFAHRT MT “WALTZ” GMBH & CO. KG

	  
	 Königstraße 23, 26789 Leer/Germany	 
	
hereinafter called the Sellers, have agreed to sell, and

	
1

	 AIAS CARRIERS CORP.	 
	 80 Broad Street, Monrovia/Liberia.	 
	
However CAPITAL SHIP MANAGEMENT CORP. to remain fully responsible for the correct fulfillment of this Memorandum of Agreement

	  
	
hereinafter called the Buyers, have agreed to buy

	
2

	  	  
	
Name: MT “WALTZ” about 150,393 dwt

	
3

	  	  
	
Classification Society/Class: Lloyds Register / L.R. +100A1 double hull Tanker

	
4

	  	  
	
Built: 2008                           By: Universal Shipbuilding Corporation – TSU Shipyard/Japan

	
5

	
Flag:  Liberia                       Place of Registration: Monrovia

	
6

	
Call Sign:  A8PH3              Grt/Nrt: 78.809/47.271

	
7

	
Register IMO Number: 9337004

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

	
9

	  	  
	
Definitions

	
10

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

	
11

	
stipulated for the Purchase Price in Clause 1, in Greece and in the place of closing 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 US$ 66,200,000.--  (in words : United States Dollars Sixty-Six Million Two Hundred Thousand) cash on delivery.

	
16

	  	  	  
	
2.

	
Deposit

	
17

	
As security for the correct fulfilment of this Agreement the Buyers shall pay a deposit of 10%

	
18

	
(ten per cent) of the Purchase Price within  3 (three)  banking days from the date of this

	
19

	
Agreement after both parties have signed a faxed copy of this Memorandum of Agreement - which to be fax-signed within one business day after all terms and conditions have been agreed  and an escrow agreement (the “Escrow Agreement”) has been signed between Sellers, Buyers and Frachtcontor Junge & Co. GmbH (the “Escrow Agrent”).  This deposit shall be placed with  the following bank account in the name of the Escrow Agent

	
20

	
M.M. Warburg Bank Hamburg (the “Bank”)

BIC/SWIFT: WBWC DE HH

Account No: 1001 1876 07

IBAN: DE76 2012 0100 1001 1876 07

Beneficiary: Frachtcontor Junge & Co., Ballindamm 17, 20095 Hamburg

	  

  

  

  

	
Reference: Sale MT “WALTZ” Deposit

 

	  
	
and held by this Escrow Agent in the above  interest bearing account on account of  the Sellers and the Buyers, to be released in accordance

	
21

	
with joint written instructions of the Sellers and the Buyers or as otherwise provided in the Escrow Agreement. Interest, if any, to be credited to the

	
22

	
Buyers.

	
23

	  	
24

	
3.

	
Payment

	
25

	
The deposit together with 90 percent balance said of the Purchase Price plus any additional payments due under this Memorandum of Agreement (such as payment for bunkers/lubricating oils, etc.) shall to be released/paid in full free of any bank charges to Sellers’ nominated  German Bank

	
26

	
Norddeutsche Landesbank, Hannover/Germany

Swift Code : NOLADE2XXX

account to be advised

	  
	
on delivery of the vessel against Protocol of Delivery signed by both the Sellers and the Buyers, Bill of Sale and all other delivery documents reasonably required for the valid transfer of ownership and the Buyers’ registration 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 to  inspected  and accepted the Vessel’s classification records without inspection. The Buyers

	
31

	  	
have also inspected the Vessel at/in      on

	
32

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

	
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subject only to the terms and conditions of this Agreement.

	
34

	  	
The Buyers have accepted the Vessel without inspection.

 

The sale is outright and definite, subject only to the terms and conditions of this Agreement.

 

	  
	
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

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

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

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

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

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

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

	
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after completion of such inspection.

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

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

	
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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,

	
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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/movements and shall

	
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provide the Buyers with 20, 15, 7, and 3 days  approximate and 2/1 days definite notice of the estimated time of  arrival at  the anticipated place and date of delivery.

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

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

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

 

	
56

	  	  	  
	
b)

	
The Vessel shall be delivered and taken over by the Buyers after diver’s inspection, charter free, free of cargo excluding slops,  safely afloat at a safe and accessible port/berth or

	
57

	  	
anchorage at/in the Atlantic Basin range (including but not limited to USEC/USG/Caribs/Central

America/EC South America / UK, Continent, Mediterranean Sea) or Arabian Gulf / Japan range.

	
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in the Sellers’ option.

	
59

	  	  	  
	  	
Expected time of delivery: in Sellers’ option between 1st May, 2010 and 31st May, 2010.

 

 Sellers are to narrow the delivery dates.

	
60

	  	  	  
	  	
Date of cancelling (see Clauses 5 c), 6 b) (iii) and 14): 31st May, 2010 in Buyers’ option.

The cancelling date refers to the last date that the readiness can be presented and not to the last date on which the Vessel may be delivered.

	
61

	  	  	  
	
c)

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

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

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

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

	
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option of either cancelling this Agreement in accordance with Clause 14 within 7 3 running

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

	
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Buyers have not declared their option within 7 3 running days of receipt of the Sellers’

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

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

	
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date stipulated in line 61.

	
71

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

	
72

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

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

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

	
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the original cancelling date.

 

	
76

	
d)

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

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

	
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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

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

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

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

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

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

	
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condition/recommendation*.

	
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b)**

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

	
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have the right at their expense to arrange for an underwater inspection by a diver approved

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

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

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

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

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

	
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port.

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

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

	
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repairs can be carried out afloat to the satisfaction of the Classification Society, the Sellers

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

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

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

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

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

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

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

	
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the underwater inspection and the Classification Society’s attendance.

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

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

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

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

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

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

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

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

	
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c)

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

	
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(i)       the Classification Society may require survey of the tailshaft system, the extent of

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

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

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

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

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

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

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

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

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

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

	
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condition/recommendation*.

 

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

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

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

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

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

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

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

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

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

	
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shall pay the aforesaid expenses, dues and fees.

	
137

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

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

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

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

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

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

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

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

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

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

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

	
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the Vessel is in drydock or not and irrespective of Clause 5 b).

	
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*

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

	
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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,

	
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alternative 6 a) to apply.

 

No drydocking clause to apply. However upon availability of the Vessel at the delivery port, the Buyers have the right to carry out an inspection of the Vessel's underwater's parts with divers prior to the delivery of the Vessel. When the Buyers choose to exercise this right, then the Buyers shall

arrange at their expense inspection of the underwater parts by a class approved diver in the presence of a representative of both the Buyers and the Sellers, together with Class surveyor, who is to be arranged by the Buyers. Notice of Readiness not be tendered prior to completion of the

underwater survey.

 

The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of Class. If the conditions at the place of delivery are unsuitable for such inspection, then the Sellers shall make the Vessel available at a suitable alternative place nearby, at their own expense. Should such movement delay the Vessel beyond the cancelling date, then same shall be extended to allow this inspection.

 

a) If damage to underwater parts affecting her Class is found which the Class requires to be rectified after six months from delivery of the Vessel, the rectification shall be done by the Buyers at their convenience. In this case, only direct cost to repair such damage shall be for the Sellers'

account, and not to include drydock dues, docking or un-docking costs. If the Class requires the damage to be repaired earlier than six months from delivery, clauses (b) or (c) to apply.

 

The Sellers shall have the option to deliver the vessel without rectifying the damage but paying the Buyers an estimated repairing cost, by way of reduction from the Purchase Price, which amount shall be an average amount reasonably quoted by the Sellers and the Buyers respectively from two (2)

reputable repairers.

 

b) If the Class requires to carry out afloat repairs of such damages promptly, then the Sellers shall repair such damages afloat at their expense to the satisfaction of Class prior delivery.

 

If Class surveyor is satisfied with the said preliminary afloat repair and approved the vessel to trade for the next 6 months with condition/recommendation, then sub-clause (a) hereabove in full to be applied in respect of compensation and delivery condition.  In this case, the canceling date specified in clause 5 herein shall be extended by the time necessary for such repairing work up to a maximum of 10 days.

 

c) If Class requires repairing such damages promptly, then the Sellers shall repair such damages at their expense to the satisfaction of Class prior to the delivery of the Vessel.

 

	
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In this case, the canceling date specified in clause 5 herein shall be extended by the time necessary for such repairing work up to a maximum of 10 days.

 

In case the Vessel would be drydocked, the Buyers have the right to clean and paint the Vessel's bottom and other underwater parts during drydock at their time, risk and expenses without interference to the Sellers' works subject to prior consent of the Sellers, which not to be unreasonably

withheld.

 

In the event that the Sellers' works are completed prior to the Buyers completion of their works, if any, the Sellers have the right to tender a notice of readiness for delivery whilst the Vessel is in drydock and deliver the Vessel in drydock, and the Buyers shall be obliged to take delivery of

the Vessel in accordance with Clause 3 herein, whether the Vessel is in drydock or not.

	  

	
7.

	
Spares/bunkers, etc.

	
154

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

	
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shore and on order without any additional charge to the Buyers. All spare  parts and spare equipment including spare tail-end shaft(s) and/or spare

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

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

	
158

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

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

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

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

	
162

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

	
163

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

 

Following spare parts are available covering this Vessel and MT “WALTZ” (not each vessel) :

4 spare cylinder liners in Houston and 1 spare electric motor for inertgas plant in Leer.

	
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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 effects/belongings including the slop chest are to be excluded from the sale,

	
168

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

- log books according to Clause 8. hereof.

- certificates which the Sellers have to return to issuing authorities according to law, but the Buyers

   to have the right to take photocopies.

- I.S.M. manuals / ISPS manuals.

- Blue Ocean satphone/email installation, which is property of Blue Ocean Wireless Limited,

   Unit 8, Fulcum 4, Solent Way, Whiteley, Hampshire, PO15 7FT, UK.

	
169

	  	  
	  	  
	
The Buyers shall take over and pay extra only for the remaining bunkers and unused/unbroached lubricating oils in storage tanks and

	
170

	
sealed drums and pay  the current net market Sellers’ last invoiced prices less all Sellers’ discounts (and excluding barging lighterage expenses) at the port and date

	
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of delivery of the Vessel. Prices are to be supported by invoices/vouchers.

 

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

	
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the Purchase Price.

	
174

	
 

8.

	
 

Documentation

	
175

	
The place of closing/payment formalities :  to take place in Sellers’ office or Sellers’ Bank.

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

	
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documents, namely: as reasonably required for valid transfer of title and registration under Buyers’ flag of choice. Such documents to be listed in an Addendum to this Memorandum of Agreement, however such agreement is not to prejudice/delay the signing of this Memorandum of Agreement and lodging of the deposit.

	
178

	
a)

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

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

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

	
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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

	
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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

	
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registered encumbrances.

	
187

	  	  	  
	
e)

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

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

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

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

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

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

	
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f)

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

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

	
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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, drawings, instruction booklets, nautical publications, charts, copies of all manuals and code-books, as well as oil record books of the last three months 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, taxes,

	
208

	
mortgages and maritime liens or any other debts or claims 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’

	
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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 date time of this Agreement inspection, fair wear and tear excepted.

	
219

	
However, the Vessel shall be delivered with her present class fully maintained without condition of Class /recommendation*, and

	
220

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

	
221

	
national/international trading certificates, as well as all other certificates the Vessel had at the date time of this Agreement inspection, clean, valid and

	
222

	
unextended without condition of Class/recommendation* by Class or the relevant authorities at for a minimum of 6 (six) months from the time of

	
223

	
delivery with all survey machinery items completely up-to-date without extensions at time of delivery.

 

The Vessel to be delivered free of cargo excluding slops.

 

The Sellers guarantee to de-commission the Inmarsat at the time of delivery to the Buyers.

 

	
224

	
“Inspection” in this Clause 11, shall mean the Buyers’ inspection according to Clause 4 a) and 4b), 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 of Class/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 max. two representatives on board the Vessel at the first opportunity at their sole risk and expense and remaining onboard until the time of delivery. upon

	
257

	
arrival at                                         on or about

	
258

	
These representatives are on board for the purpose of familiarization with the Vessel and her operations and in the capacity of

	
259

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

	
260

	
Buyers’ representatives shall sign the Sellers’ normal P & I letter of indemnity prior to their embarkation.

 

	
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 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.

	
Blacklisting

 

	  

  

  

  

	  	
On delivery the Sellers shall hand to the Buyers a letter of undertaking stating that to the best of Sellers’ knowledge the Vessel under present Ownership is not blacklisted by any nation including the Arab Boycott League in Damascus and the Vessel is in all respects compliant with the U.S. Coastguard regulations.

	  

	
18.

	
Private and Confidential Clause

 

The terms and conditions of this sale to be kept strictly private and confidential by all parties. However should the sale be reported, neither the Buyers or the Sellers have any right to withdraw from the contract and its obligations. The Buyers shall have the right to publicly disclose information regarding the sale as per the SEC disclosure requirements.

 

 

	  

	  	  	  

This Memorandum of Agreement has been drawn up and executed in 2 (two) Originals, 1 (one) of which is to be retained by the Sellers and 1 (one) of which is to be retained by the Buyers.

                           The S E L L E R S :                                  The B U Y E R S :

 

 

 

 

 

 

 

	
Copyright Norwegian Shipbrokers’ Association, Oslo, Norway.

Printed and sold by S-Gruppen A/S, Halvorsen & Larsen, Oslo, Norway.

Fax: 47-22-25 28 69. Phone: 47-22-25 81 90.exh_4-12.htm

Exhibit 4.12

 

 

FORM OF CRUDE CARRIERS CORP.

 

RESTRICTED STOCK AWARD AGREEMENT DATED [•]

 

(THE “AWARD DATE”)

 

WHEREAS, Crude Carriers Corp. (the “Company”) wishes to grant to ____________________ _______________________________________, (the “Recipient”) Restricted Stock in the Company; and

 

WHEREAS, the Board has determined that it would be to the advantage and in the best interests of the Company and its stockholders to grant the Restricted Stock provided for herein to the Recipient as an inducement to continue to provide services to the Company and as an incentive for increased efforts during such service.

 

NOW, THEREFORE, in consideration of the mutual covenants contained in this Restricted Stock Award Agreement (the “Agreement”) the parties hereto do hereby agree as follows:

 

1.           Definitions. All capitalized terms used herein shall have the meaning ascribed to them in the Company’s 2010 Equity Incentive Plan (the “Plan”).

 

2.           Grant of Restricted Stock. In consideration of the Recipient’s services to the Company and the Recipient’s covenants set out herein, the Company hereby grants to the Recipient ________________ ________________________________,  shares of Restricted Stock (the “Recipient’s Restricted Stock”) subject to the terms and conditions set forth in the Plan, including but not limited to the terms and conditions in connection with the vesting, expiration, limitations on the transferability of, adjustment to and withholding and payment of any taxes associated with such Recipient’s Restricted Stock, and in this Agreement.

 

3.           Vesting. The Recipient’s rights with respect to the Recipient’s Restricted Stock will vest, and the restrictions set forth in the Plan and in this Agreement with respect thereto shall lapse on:

 

	
  

	
(i)

	
August 31, 2013, or

 

	
  

	
(ii)

	
if not then fully vested, in full upon the death or total and permanent disability of the Recipient (such disability as determined in good faith by the Board based on an examination by a qualified medical doctor appointed by the Board), or

 

	
  

	
(iii)

	
if not then fully vested, upon the Recipient’s Retirement (defined as the termination of employment after attainment of age 65 or other mutually agreed retirement date, whichever later) pro rata in an amount equal to the Recipient’s Restricted Stock times the Number of days from Award Date to Retirement divided by the Number of days from the Award Date to the Vesting Date,

 

(each of the above, the “Vesting Date”), provided that following the Vesting Date the Recipient’s Restricted Stock shall be subject to the restrictions set forth in the Company’s Articles of Association and Bylaws, as amended, and the restrictions set out in Section 8 of this Agreement. For the avoidance of doubt, in the event the Recipient ceases to be an officer, employee or consultant of, or provide the relevant services to, the Company or one of its Affiliates or Subsidiaries for any reason other than the Recipients’ Retirement, permanent disability or death, the Recipient’s Restricted Stock shall be forfeited without any payment or vesting, unless otherwise mutually agreed.

  

  

  

4.           Custodian. The custodian appointed by the Company in connection with the Recipient Restricted Shares is the National Bank of Greece (the “Custodian”).

 

5.           Consideration to the Company.  In consideration of the granting of the Recipient Restricted Stock by the Company, the Recipient agrees to render faithful and efficient service to the Company, or its Subsidiaries, Affiliates or any Subsidiary of any Affiliate as the case may be, with such duties and responsibilities as the Company shall from time to time prescribe. Nothing in this Agreement shall confer upon the Recipient any right to continue to render services to the Company or to continue in the employ of the Company or any Subsidiary or Affiliate or any Subsidiary of any Affiliate, as the case may be, thereof, or shall interfere with or restrict in any way the rights of the Company, or any Subsidiary or Affiliate, to discharge the Recipient at any time and for any reason whatsoever.

 

6.            Dividends. All Recipient’s Restricted Stock granted under the terms of this Agreement shall be entitled to receive dividends or other distributions made during the period between the Award Date and the Vesting Date, payable in full on the Vesting Date. Prior to such Vesting Date, any dividend payments allocated to the Recipient’s Restricted Stock shall be maintained by the Custodian on behalf of the Recipient.

 

7.           Company Business. Nothing in this Agreement shall be construed as limiting or preventing the Company from taking any action with respect to the operation and conduct of its business that it deems appropriate or in its best interests, including any or all adjustments, recapitalizations, reorganizations, exchanges or other changes in the capital structure of the Company, any merger or consolidation of the Company, any issuance of Stock of or other Awards or subscription rights thereto, any issuance of bonds or debentures, any dissolution or liquidation of the Company, any sale or transfer of all or any part of the assets or business of the Company, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

8.           General Restrictions and Registration.  (a) The Recipient Restricted Stock shall be subject to all applicable laws, rules and regulations, United States Federal and state securities laws, the availability of exemptions from the registration requirements of such, including all United States Federal and state securities laws, and the obtaining of all approvals by governmental authorities as may be deemed necessary or appropriate by the Board.  In no event will the Company be obligated to register the Recipient Restricted Stock under Federal or state securities laws, to comply with the requirements of any exemption from registration requirements, or to take any other action that may be required in order to permit, or to remove any prohibition or limitation on, the Restricted Stock which may be imposed by any applicable law, rule or regulation.  (b) The Recipient hereby (i) represents and warrants that the Recipient will not distribute any Restricted Stock, whether or not vested, in violation of any United States Federal or state securities laws or the Shareholders Agreement, (ii) acknowledges that, unless notified to the contrary by the Company, such Recipient Restricted Stock will not have been registered under any United States Federal or state securities laws and must be held indefinitely unless subsequently registered under any applicable United States Federal or state securities laws or unless an exemption from such registration is or becomes available and (iii) represents and warrants that the Recipient has received and reviewed the Company’s Insider Trading Policy and shall comply with the terms set out therein .  (c) Any sale or transfer of the Recipient Restricted Stock following the vesting of such Recipient Restricted Stock shall remain subject to applicable law and the approval of the Board and shall be in compliance with the Insider Trading Policy of the Company. (d) The Company may affix to certificates for Stock issued pursuant to this Agreement any legend that the Company determines to be necessary or advisable with respect to any applicable securities law or the Company Articles of Association or Bylaws, as amended.  The Company may advise the Custodian to place a stop order against any legended shares.

 

  

  

  

 

9.           Taxation. The Company hereby makes no representation to you with respect to the potential tax consequences of the granting of such Recipient Restricted Stock and bears no responsibility with connection to the tax consequences of receiving such Recipient Restricted Stock to you. You acknowledge that it is your sole responsibility to seek independent advice regarding your obligations with respect to such Restricted Stock, including reporting, accounting, tax and filing obligations, and with respect to any consequences to you of receiving such Restricted Stock.

 

10.           United States Tax Law (US Residents Only).  You are authorized, if you so choose, to file an election with the United States Internal Revenue Service pursuant to Section 83(b) of the US Internal Revenue Code of 1986, as amended (the “Code”) with respect to all or a portion of the Recipient Restricted Stock.  You agree that if you make such Section 83(b) election, you shall provide a copy of such election to the Company not later than ten days after filing the election with the United States Internal Revenue Service or other governmental authority in accordance with Section 9(n) of the Plan.  The Company has made no recommendation to you with respect to the advisability of making any such election.  You acknowledge that it is your sole responsibility to seek advice regarding Section 83(b) of the Code and to determine the effect of making or failing to make such election.  The delivery of Restricted Stock pursuant to this Agreement is conditioned on satisfaction of any applicable withholding taxes.

 

11.           Notices.  All notices and other communications hereunder shall be in writing and shall be deemed given when delivered personally or when telecopied (with confirmation of transmission received by the sender), three business days after being sent by certified mail, postage prepaid, return receipt requested or one business day after being delivered to a nationally recognized overnight courier with next day delivery specified to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

If to the Company, to:  Crude Carriers Corp., Iassonos Street, Piraeus, 18537 Greece

Fax:  +30 210 4284 285

Attn:  General Counsel

If to the Participant, to the address on file with the Company.

Notices sent by email or other electronic means not specifically authorized by this Agreement shall not be effective for any purpose of this Agreement.

 

12.           Severability. If any provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify this Agreement under any law deemed applicable by the Company, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Company, materially altering the intent of this Agreement, such provision shall be construed or deemed stricken as to such jurisdiction, Person or Award and the remainder of the Agreement shall remain in full force and effect.

 

13.           Survival.  For the avoidance of doubt, the parties hereto acknowledge that Section 5 shall survive any termination, amendment, renewal or extension of this Agreement or any forfeiture or vesting of any Restricted Shares granted pursuant to this Agreement.

 

14.           Successors and Assigns of the Company.  The terms and conditions of this Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns.

 

 

  

  

  

 

15.           Governing Law.  The validity, construction and effect of this Agreement and any rules and regulations relating to this Agreement shall be determined in accordance with the laws of the State of New York, without giving effect to the conflict of laws provisions thereof.

 

Receipt of this Agreement and of the Plan confirmed and acknowledged by:

 

Recipient: ____________________________

 

Crude Carriers Corp.: __________________

 

Date:           ____________________________

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