Document:

Exhibit 10.1

 

TH1S MASTER AGREEMENT (this “Agreement”)
is dated as of the 24th day of June, 2010
and made AMONG:

 

1.                            BOURBON SA,
a company incorporated in France and registered at the Registry of Commerce and
Companies of Paris under number B310 879 499, and whose registered office is at
148 Rue Sante 13007, Marseille, France, represented
for the purpose of this Agreement by Laurent Renard (“Sellco”);

 

2.                            Genco Shipping & Trading Limited,  a
Marshall Islands corporation having offices at 299 Park Avenue, 20th Floor, New
York, NY 10171, U.S.A. (“Buyco”); and

 

3.                            The companies whose names and addresses are set out in schedule 1
(together the “Sellers” and each a
“Seller”).

 

together hereinafter referred to as the “Parties” and individually, the “Party”.

 

1T IS HEREBY
AGREED as follows:

 

1              Definitions.

 

1.1          Defined expressions.

 

“Account” means
the interest bearing Dollar account opened by the Parties pursuant to the First
Escrow Agreement and governed as of the date hereof by the Second Escrow
Agreement;

 

“Affiliate” means in relation to a company,
any other company which, directly or indirectly, controls or is controlled by
such company, and any other company controlled, directly or indirectly, by any
such controlling company and for this purpose “control” shall have the meaning
given by article L.233-3 I and II of the French Commercial Code;

 

“Allocated Purchase Price” means,
in respect of each Vessel and Newbuilding, the purchase price of such Vessel or
Newbuilding as set out in the relevant column of schedule 1;

 

“Bank” means DnB NOR Bank
ASA, London and includes its successors in title;

 

“Banking Day” means
any day (other than Saturday and Sunday) on which banks are open for business
in New York, London and the place where a payment is to be made;

 

“Buyer” means a
company nominated by Buyco pursuant to the provisions of clause 2.7 as being
the buying company under a MOA, and “Buyers” means,
together, all companies nominated by Buyco pursuant to the provisions of clause
2.7;

 

“Charters” means the charters described in schedule 4.

 

“Credit Facilities” means the credit facilities described in schedule 5.

 

“Dollars” or
“$” means the lawful currency of the United States of America;

 

“First Closing Date” is the date on which the first closing of the
purchase of a Vessel hereunder occurs.

 

 

“First Escrow
Agreement” means the escrow agreement dated as of June 21, 2010
made between Bourbon SA, Sellco, Buyco and the Bank;

 

“MOA”
means, in relation to each Vessel or Newbuilding, a memorandum of agreement to
be executed in relation to the sale and purchase of such Vessel or Newbuilding
and “MOAs” means, together, all
the memoranda of agreement executed by the relevant parties in relation to the
Vessels and Newbuildings, copies of which are attached hereto as schedule 3;

 

“MOA Account” means, in respect of each MOA, the interest bearing Dollar bank account
opened or (as the context may require) to be opened jointly by the relevant
Seller and the relevant Buyer with the Bank in their joint names pursuant to
the provisions of clause 2 of the relevant MOA, and “MOA Accounts” means, together, all the joint interest bearing
Dollar bank accounts opened pursuant to the provisions of clause 2 of each MOA;

 

“MOA Deposit” means, in respect of each MOA, the sum deposited or (as the context may
require) to be deposited by the relevant Buyer in the relevant MOA Account
pursuant to the provisions of clause 2 of the relevant MOA, and “MOA Deposits” means the aggregate of the
sums deposited in the MOA Accounts pursuant to the provisions of clause 2 of
each MOA;

 

“Newbuildings” means the vessels under construction listed
in Part B of Schedule 1;

 

“Outside Date” means
August 31, 2010;

 

“Second Deposit” means the amount of fifty-four million five hundred thousand U.S.
Dollars (US$54,500,000) minus the First Deposit, which has been or shall be
deposited by Buyco in the Account;

 

“Second Escrow Agreement” means that certain Escrow Agreement dated as of June 24,
2010 by and among Sellco, Buyco, and the Bank;

 

“Total Purchase Price” means
$545,000,000, being the aggregate of the Allocated Purchase Prices of all the
Vessels and Newbuidings to be delivered to a Buyer in accordance with the terms
of the relevant MOAs; and

 

“Vessel” means
any of the vessels listed in Part A of schedule 1 and “Vessels” means any or all of them.

 

1.2          Headings.   Clause headings and the table of contents are inserted for convenience
of reference only and shall be ignored in the interpretation of this Agreement.

 

1.3          Construction of certain terms.  In
this Agreement, unless the context otherwise requires:

 

(a)                                  “hereof,” “herein,” and “hereinafter” refer to this Agreement as a
whole, including without limitation the exhibits and schedules hereto;

 

(b)                                 references to clauses and the schedules are to be construed as
references to clauses of, and the schedules to, this Agreement and references
to this Agreement include the schedules and the MOAs;

 

(c)                                  “including” means including, without limitation (whether or not so
expressed);

 

2

 

(d)                                 “days” means calendar days;

 

(e)                                  references to (or to any specified provision of) this Agreement or any
other document shall be construed as references to this Agreement, that
provision or that document as in force for the time being and as amended in accordance
with the terms thereof, or, as the case may be, with the agreement of the
relevant parties and (where such consent is, by the terms of this Agreement or
the relevant document, required to be obtained as a condition to such amendment
being permitted) the prior written consent of the relevant party;

 

(f)            words
importing the plural shall include the singular and vice versa;

 

(g)                                 references to a person shall be construed as references to an
individual, firm, company, corporation or unincorporated body of persons; and

 

(h)                                 references to statutory provisions shall be construed as references to
those provisions as re-enacted, amended or extended.

 

1.4          Conflict with MOAs. This
Agreement shall be read together with each MOA, but in case of any conflict
between this Agreement and a MOA, the provisions of this Agreement shall
prevail.

 

2              Purchase and Sale of Vessels; Related Transactions.

 

2.1          Purchase and sale.  Subject to the terms and conditions set forth
in this Agreement and the MOAs, Sellco shall
convey, transfer, assign, sell, and deliver to Buyco, and Buyco shall acquire,
accept, and purchase, each of the Vessels and the Newbuildings.   To the extent any Vessel is subject to a
contract of affreightment as of the date hereof, the sale and purchase of the relevant
Vessel subject to the contract of affreightment shall take place on or after
the expiry of such contract of affreightment.

 

2.2          Purchase
price.  Subject to the terms
of this Agreement (including the MOAs), the Total Purchase Price (payable under
the MOAs) shall be payable in installments. Each installment shall be equal to
the amount of the Allocated Purchase Price for the relevant Vessel and shall be
payable in accordance with the terms of the relevant MOA. The Allocated
Purchase Price of each Vessel and Newbuilding is based on the assumption that
the only items to be excluded from the sale of such Vessel or Newbuilding under
the relevant MOA shall be those listed in schedule 2.

 

2.3          Vessel Inspections.   Seller shall make the three (3) Vessels
known as the Thermidor, the Angor, and the Dalior to be
available at locations and times reasonably agreeable to Buyco in order for
Buyer to inspect such Vessels (the “Vessel Inspections”)
no later than July 12, 2010.

 

2.4          Delivery of Vessels and Newbuildings.  Subject to Clause 2.1, the physical
deliveries of the Vessels and Newbuildings will take place at safe berths or
anchorages free of cargo, excluding areas prohibited by the United States of
America’s laws and regulations and otherwise in accordance with the MOAs.  Sellco will use its best efforts to cause the
time of delivery for each Vessel and Newbuilding, which is to be mutually
agreed, to occur between July 19, 2010 and August 31, 2010 for the
Vessels, between July 19, 2010 and [August 30], 2010 for the
Newbuilding known as the Antheor, and
between July 19, 2010 and [May 30], 2011 for the Newbuilding known as
the Sunor.

 

3

 

2.5          Charter Parties.  Sellco shall
use its best efforts to have the relevant Charterer under each Charter Party execute not later than the date of the First Closing a novation
agreement providing for the novation of that Charter Party to the relevant
Buyer upon delivery of the relevant Vessel under the relevant MOA, upon the
terms and subject to the conditions included in the draft set out in Schedule 6.  If, despite Sellco’s best efforts, Sellco is
unable to obtain such novation by the date which is thirty (30) days prior to
the cancelling date under a given MOA, then (a) subject to any other
applicable conditions under this Agreement (including the MOAs), the sale of
the relevant Vessel shall proceed without the Charter Party being attached to
the Vessel, and (b) Sellco shall fully defend, hold harmless, and indemnify Buyco, its Affiliates, and
their respective officers, directors, shareholders, and personnel, from any and
all liabilities arising out of or relating to termination of such Charter
Party, including reasonable fees and expenses of counsel.

 

2.6          Transfer of Credit Facilities.  Sellco
shall use its best efforts to have
the relevant lender or lenders under each Credit Facility execute not later
than July 13, 2010 supplemental loan documentation upon terms reasonably
acceptable to Buyco providing for transfer of that Credit Facility to Buyco or
the relevant Buyer upon delivery of the relevant Vessel(s) under the
relevant MOA.  If such supplemental loan documentation is
executed with respect to a given Credit Facility, Buyco shall be responsible
for any bank fees payable in connection with such execution as specified in
such documentation.  If such supplemental
loan documentation is not executed, Sellco shall continue to bear all costs and
liabilities associated with such Credit Facility, and in particular and without
limitation shall be responsible for the prepayment of such Credit Facilities
and any costs in connection with such prepayment or termination of such Credit
Facility.

 

2.7          Nomination.   Buyco shall have the right to nominate another company as the buyer under
each MOA no later than seven (7) Banking Days prior to the delivery of the
relevant Vessel under such MOA.

 

2.8          Execution
of MOAs.  Simultaneously
with the execution and delivery of this Agreement, the Parties shall execute
and deliver the MOAs.

 

2.9          Employee representatives.  Sellco and the Sellers shall submit to all
appropriate works councils or other employee representative bodies any
notifications or information, and shall obtain any prior opinion from such
works councils or other employee representative bodies, in each case as and
when required to be provided or obtained in connection with the transactions
contemplated hereby under applicable law and in any event no later than the
First Closing Date.

 

2.10.       Taxes. 
Sellco and the Sellers represent and warrant
that none of the Vessels are used for transport between two points situated in
France (including Corsica and French overseas departments).  The representations and warranties in this
clause 2.11 shall survive the closings for the purchase of the Vessels.  Sellco
shall fully defend, hold
harmless, and indemnify Buyco, its Affiliates, and their respective officers,
directors, shareholders, and personnel, from any and all liabilities arising
out of or relating to any breach of this representation and warranty, including
reasonable fees and expenses of counsel.

 

3              Deposits.

 

3.1          Second Deposit.   Not later than 5:00 p.m. (London time) on June 28, 2010, Buyco
shall

 

4

 

deposit in the Account a sum equal to the Second Deposit,
which together with the amount of US$5,000,000 deposited by Buyco into escrow
pursuant to the First Escrow Agreement (together with interest earned thereon)
(the “First Deposit”), shall be
the “Total Deposit”.  Interest on the Total Deposit shall accrue in
accordance with the terms of the Second Escrow Agreement.

 

3.2          MOA Deposits.   On the later of July 19, 2010 and the
date by which all MOA Accounts have
been opened, Sellco and Buyco shall instruct the Bank to remit to each MOA
Account the amount of the relevant MOA Deposit as specified in the relevant MOA
using funds from the Initial Deposit.

 

4.             Conditions
Precedent to the Obligations of Buyco and the Buyers. Notwithstanding any other provisions of this
Agreement (including the MOAs), the obligations of Buyco and any Buyer to
purchase and pay for the Vessels and Newbuildings and to consummate the other
transactions contemplated hereby are subject to the fulfillment of the
following conditions:

 

(a)           Buyco shall have completed the Vessel
Inspections to its reasonable satisfaction on or before July 13, 2010;

 

(b)           Buyco shall not have given written
notice under clause 7.1(c) on or before July 13, 2010; and

 

(c)           all
conditions precedent to the Parties’ respective obligations set forth in the
relevant MOA shall have been satisfied, including, without limitation, delivery
of the Vessel or Newbuilding on or before the final date permitted in such MOA.

 

Buyco may waive any one or more of the foregoing
conditions in this clause 4 in its sole discretion.

 

5          Guarantees.

 

5.1          Sellco, as primary obligor and not merely as surety, hereby unconditionally and
irrevocably guarantees the due and punctual performance by each of the Sellers
of their respective obligations under the MOAs, for the benefit of Buyco and
each of the Buyers.

 

5.2          Buyco, as primary obligor
and not merely as surety, hereby unconditionally and irrevocably guarantees the
due performance by each of the Buyers of its their respective obligations under
each of the MOAs for the benefit of Sellco and each of the Sellers.

 

5.3          No alteration in the
terms of this Agreement or any MOA or in the extent or nature of the
obligations or liabilities to be guaranteed hereunder, and no allowance of time
given by or to any party to this Agreement or any MOA, or any other forbearance
or concession or any other act or omission by any person, which, but for this
provision, might exonerate or discharge either Sellco or Buyco from their
respective guarantee hereunder, shall in any way release or discharge Sellco or
Buyco, as the case may be, from its obligations and liabilities under this
Agreement.

 

6              Personnel of Sellco, the Sellers, and their
Affiliates.  Neither Buyco nor any of its Affiliates shall
have any obligation under or in regard to this Agreement or the transactions
contemplated hereby to provide employment to any of personnel of Sellco, the
Sellers, or their respective Affiliates (collectively, “Seller Personnel”).  In the event that employment of any

 

5

 

Seller Personnel is
deemed to be assumed by or transferred to Buyco or any of its Affiliates by
operation of French law or otherwise, Sellco shall assume, or shall cause one
or more of its Affiliates to assume, full responsibility for any termination or
other liabilities relating to the Seller Personnel, whether or not related to
the this agreement or the transactions contemplated hereby, and whether arising
at any time before, on or after the date hereof.  Buyco shall, and shall procure that the
Buyers shall, perform such acts and execute such documents as Sellco may
reasonably require in connection with the assumption by Sellco and/or its
Affiliates of all such liabilities and, if applicable, the termination of such
other personnel’s contracts of employment; except that Buyco shall have no
obligation to perform any act or execute any document that is prejudicial to
its interests.  Sellco shall be solely
responsible for any termination, severance, or other costs or liabilities
relating to any Seller Personnel, whether or not such costs relate to, result
from or arise out of this Agreement or the transactions contemplated hereby,
including any such costs or liabilities relating to, result from or arise out
of (i) the employment or the actual or constructive termination of
employment of any Seller Personnel by Seller (including in connection with the
consummation of the transactions contemplated by this Agreement), (ii) the
participation in or accrual of benefits or compensation under, or the failure
to participate in or to accrue compensation under, any employee benefit plan,
and (iii) accrued but unpaid salaries, wages, bonuses, incentive
compensation, commissions, retention payments, vacation or sick pay or other
compensation or payroll items (including deferred compensation) and all
contributions and payments to be made with respect to the social security
regime (including pensions, unemployment benefits, and the welfare
programs).  In addition, Sellco shall
fully defend, hold harmless, and indemnify Buyco, its Affiliates, and their
respective officers, directors, shareholders, and personnel, from any and all
liabilities relating to Seller Personnel as referred to above, including
reasonable fees and expenses of counsel.

 

7              Termination.

 

7.1          Grounds for
termination of Agreement.  This Agreement (including all MOAs) may be
terminated at any time prior to the First Closing Date:

 

(a)           by
mutual written agreement of Sellco and Buyco;

 

(b)           by
Sellco and Sellers, on the one hand, or Buyco, on the other, if the other has
materially breached its obligations under clause 2.5, 2.6, or 2.9 of this
Agreement and such breach continues for a period of thirty (30) days (or such
lesser number of days exists before the First Closing Date) after written
notice thereof has been given by the non-breaching Party to the breaching Party

 

(c)           by
Buyco immediately upon written notice to Sellco and Sellers given on or prior
to July 13, 2010 if the condition set forth in clause 4(a) has not
been satisfied by July 12, 2010;

 

(d)           by
Buyco or Sellco immediately upon written notice to the other in the event that
Buyer gives notice, at its election, to Sellco and Sellers on or prior to July 13,
2010  stating that Buyco has not
obtained financing for the Total Purchase Price acceptable to Buyco in its sole
discretion; or

 

(e)          by
either Sellco or Buyco if the First Closing Date shall not have occurred on or
before the Outside Date; provided, however, that the right to terminate this
Agreement under this clause

 

6

 

7.1(d) shall not be available to any Party
whose failure to take any action required to fulfill any obligation under this
Agreement shall have been the cause of, or shall have resulted in, the failure
of the First Closing Date to occur prior to such date.  Any Party terminating this Agreement under
this clause 7.1(d) shall send notice thereof to the other Parties.

 

7.2          Effects of
termination.  In the event of termination of this Agreement
as provided in clause 7.1, this Agreement (including the MOAs) shall
immediately become void, and there shall be no liability or obligation on the
part of any Party or its Affiliates or their respective officers, directors,
shareholders, or personnel, except that:

 

(a) any such termination shall not relieve any
party from liability for any breach of this Agreement;

 

(b) the provisions of clauses 1, 2.5, 2.11, 6,
7.2, 9, 10, and 11 shall survive any termination of this Agreement;

 

(c)  If Buyco or Sellco terminates this
Agreement pursuant to clause 7.1(d) and Sellco and the Sellers have
fulfilled all other conditions hereunder to Buyco’s and Buyer’s obligations to
purchase any and all Vessels and Newbuildings and are otherwise are prepared to
deliver all Vessels and Newbuildings in accordance with this Agreement on the
effective date of termination (excluding such conditions or preparations that
would be fulfilled solely by the passage of time), then either Sellco or Buyco
may instruct the Bank to remit an amount equal to $5,000,000 from the Initial
Deposit to Sellco’s account, and to remit the balance of the Initial Deposit to
Buyco’s account in accordance with the terms of the Second Escrow Agreement;

 

(d)           If
Buyco and/or Sellco terminates this Agreement pursuant to clause 7.1(a),
7.1(b), 7.1(c), or 7.1(e), then Sellco and Buyco shall instruct the Bank to
remit the Initial Deposit to Buyco’s account in accordance with the terms of
the Second Escrow Agreement.

 

7.3          Closings
under MOAs.  All provisions of this Agreement shall survive
each closing under any MOA.

 

8              Exclusivity.  Sellco, the Sellers and any third party related or connected thereto
(contractually or otherwise) shall not have the right to market any of the
Vessels and Newbuildings, the Sellers, or any interest therein to other
interested parties after the date of execution of this Agreement unless and
until this Agreement and/or the MOAs executed in relation to any such Vessel
and Newbuildings are terminated in accordance with the terms provided herein or
therein.

 

9              Notices.   Every notice, request, demand or other communication under this
Agreement or (unless otherwise provided therein) under any of the MOAs shall:

 

(a)                        be in writing delivered personally or by first-class prepaid letter
(airmail if available), express courier or facsimile transmission;

 

(b)                       be deemed to have been received, in the case of a letter, when delivered
personally or three (3) days after it has been put in to the post or
delivered to the express courier and, in the case of a facsimile transmission,
at the time of dispatch (provided that if the date of dispatch is not a
business day in the country of the addressee or if the time

 

7

 

of
dispatch is after the close of business in the country of the addressee it
shall be deemed to have been received at the opening of business on the next
such business day); and

 

(c)                        be sent:

 

	
  (i)

  	
  to Buyco at:

  	
  (ii)

  	
  to Sellco
  or Sellers at

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Genco Shipping & Trading
  Limited

  	
   

  	
  Bourbon SA

  
	
   

  	
  299 Park Avenue, 20th Floor

  	
   

  	
  c/o Bourbon
  Maritime SAS 

  
	
   

  	
  New York, NY 10171

  	
   

  	
  148 rue Sainte

  
	
   

  	
  Attn.: Mr. John C. Wobensmith

  	
   

  	
  13007
  Marseille

  
	
   

  	
  Telecopier: +1 (646) 443-8551

  	
   

  	
  France

  
	
   

  	
   

  	
   

  	
  Attn:
  Mr. Laurent Renard

  
	
   

  	
  with a copy (which shall not constitute
  notice) to:

  	
   

  	
  Telecopier:
  +33 (0) 4 91 13 14 13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Kramer Levin Naftalis & Frankel
  LLP

  	
   

  	
  with a copy (which shall not constitute
  notice) to:

  
	
   

  	
  1177 Avenue of the Americas

  	
   

  	
   

  
	
   

  	
  New York, NY 10036

  	
   

  	
  Holman Fenwick
  Willan LLP

  
	
   

  	
  U.S.A.

  	
   

  	
  Friary Court

  
	
   

  	
  Attn.: Thomas E. Molner, Esq.

  	
   

  	
  65 Crutched
  Friars

  
	
   

  	
  Telecopier: +1 (212) 715-8000

  	
   

  	
  London EC3N
  2AE

  
	
   

  	
   

  	
   

  	
  Attn: Alistair
  Mackie, Esq.

  
	
   

  	
  and

  	
   

  	
  Telecopier:
  +44 (0) 207 264 8888

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Watson, Farley & Williams LLP

  	
   

  	
   

  
	
   

  	
  15 Appold Street

  	
   

  	
   

  
	
   

  	
  London EC2A 2HB

  	
   

  	
   

  
	
   

  	
  Attn.: Richard Dibble, Esq.

  	
   

  	
   

  
	
   

  	
  Telecopier:
  +44 20 7814 8141

  	
   

  	
   

  

 

or to such other address
and/or numbers as is notified by one Party to the other Parties in accordance
with this clause 9.

 

10           Governing Law; Dispute Resolution.

 

10.1        Law.  This
Agreement is governed by, and shall be construed in accordance with, English
law.

 

10.2        Arbitration.  Any
dispute (including non-contractual disputes or claims) arising out of this
letter agreement shall be referred to arbitration in London in accordance with
the Arbitration Act 1996 or any statutory modification or re-enactment thereof
for the time being in force, one arbitrator being appointed by each of Buyco
and Sellco.  On the receipt by one such
Party of the nomination in writing of the other such Party’s arbitrator, that
Party shall appoint their arbitrator within fourteen days, failing which the decision
of the single arbitrator appointed shall apply. 
If two arbitrators properly appointed shall not agree they shall appoint
an umpire whose decision shall be final.

 

8

 

10.3        Contracts
(Rights of Third Parties) Act 1999.  Save for any rights of the Buyers set out herein, no term of this
Agreement is enforceable under the terms of the Contracts (Rights of Third
Parties) Act 1999 by a person who is not a party to this Agreement.

 

11.          General.

 

11.1        Execution.  This Agreement and each of the MOAs may be
executed in any number of counterparts and by the different parties hereto
and/or thereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same agreement. Delivery of an executed counterpart of a signature page to
this Agreement and/or any MOA by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement and/or such MOA.

 

11.2        Assignment.  Except as expressly provided herein, no Party may assign any of its
rights or obligations under this Agreement without the prior written consent of
the other Parties.

 

11.3        Amendments
and Modifications.  No
amendment or modification of this Agreement shall be effective unless in
writing and signed by all the Parties.

 

11.4        Waiver.  Terms of this Agreement may only
be waived by written consent signed by the Party granting the waiver.  The waiver by any Party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a waiver
of any other provision and any extension of time for the performance of any
obligation shall not be deemed to be an extension of time for the performance
of any other obligation.

 

11.5        Severability.  If a provision of this Agreement is or
becomes illegal, invalid or unenforceable in any jurisdiction, that shall not
affect the validity or enforceability in that jurisdiction of any other
provision of this Agreement.

 

11.6        English
language.  All documents to be delivered under or supplied in connection with this
Agreement shall be in the English language or shall be accompanied by a
certified English translation upon which the recipient party shall be entitled
to rely.

 

11.7        Publicity.  Buyco and Sellco shall coordinate with each other in good faith with
respect to any public announcements concerning this Agreement.

 

11.8        Expenses.  Each Party shall bear its own expenses (including, without limitation,
taxes, if any, and legal fees) incurred in connection with the transactions
contemplated hereby.

 

11.9.       Entire
Agreement.  This Agreement
represents the entire agreement of the Parties with respect to the subject
matter hereof and supersedes all prior or contemporaneous agreements, whether
written or oral, with respect to such subject matter, including the Exclusivity
Agreement.

 

[Signature
pages follow.]

 

9

 

IN WITNESS WHEREOF,
the Parties have caused this Agreement to be duly executed as of the date first
set forth above.

 

 

	
  BOURBON S.A.

  	
   

  	
  GENCO SHIPPING & TRADING LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Laurent Renard

  	
   

  	
  By:

  	
  /s/ John Wobensmith

  
	
  Name: Laurent
  Renard

  	
   

  	
  Name: John Wobensmith

  
	
  Title: Directeur
  general délégué

  	
   

  	
  Title: CFO

  
					

 

 

	
  SELLERS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   AVRACS
  S.A.S.U.

  	
   

  	
  MOLITOR S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   By: 

  	
  /s/ Laurent Renard

  	
   

  	
  By: 

  	
  /s/ Laurent Renard

  
	
   Name:
  LAURENT RENARD

  	
   

  	
  Name: LAURENT RENARD

  
	
   Title: REPRÉSENTANT PERMANENT DE
  LA SOCIÉTÉ  SETAF PRESIDENTE DE AVRACS S.A.S.U.

  	
   

  	
  Title: REPRÉSENTANT PERMANENT DE LA
  SOCIÉTÉ SETAF PRESIDENTE DE MOLITOR S.A.S.U.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   SINVRAC
  S.A.S.U.

  	
   

  	
  H.S.O. S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   By: 

  	
  /s/ Laurent Renard

  	
   

  	
  By: 

  	
  /s/ Laurent Renard

  
	
   Name:
  LAURENT RENARD

  	
   

  	
  Name: LAURENT RENARD

  
	
   Title: REPRÉSENTANT PERMANENT DE
  LA SOCIÉTÉ  SETAF PRESIDENTE DE SINVRAC S.A.S.U.

  	
   

  	
  Title: REPRÉSENTANT PERMANENT DE LA
  SOCIÉTÉ SETAF PRESIDENTE DE H.S.O S.A.S.U.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   THERMIDOR
  S.A.S.U.

  	
   

  	
  SEFOR S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   By: 

  	
  /s/ Laurent Renard

  	
   

  	
  By:

  	
  /s/ Laurent Renard

  
	
   Name:
  LAURENT RENARD

  	
   

  	
  Name: LAURENT RENARD

  
	
   Title: REPRÉSENTANT PERMANENT DE
  LA SOCIÉTÉ  SETAF PRESIDENTE DE THERMIDOR S.A.S.U.

  	
   

  	
  Title: REPRÉSENTANT PERMANENT DE LA
  SOCIÉTÉ SETAF PRESIDENTE DE SEFOR S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   H.S.O.
  S.A.S.U.

  	
   

  	
  TENOR S.A.S.U.

  
	
   

  	
   

  	
   

  
	
   By: 

  	
  /s/ Laurent Renard

  	
   

  	
  By: 

  	
  /s/ Laurent Renard

  
	
   Name:
  LAURENT RENARD

  	
   

  	
  Name: LAURENT RENARD

  
	
   Title: REPRÉSENTANT PERMANENT DE
  LA SOCIÉTÉ  SETAF PRESIDENTE DE H.S.O. S.A.S.U.

  	
   

  	
  Title: REPRÉSENTANT PERMANENT DE LA
  SOCIÉTÉ SETAF PRESIDENTE DE TENOR S.A.S.U.

  

 

10

 

	
   FRUCTIDOR
  S.A.S.U.

  	
   

  	
  MATADOR S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   By:

  	
  /s/ Laurent Renard

  	
   

  	
  By: 

  	
  /s/ Laurent Renard

  
	
   Name:
  LAURENT RENARD

  	
   

  	
  Name: LAURENT RENARD

  
	
   Title: REPRÉSENTANT PERMANENT DE
  LA SOCIÉTÉ  SETAF PRESIDENTE DE FRUCTIDOR S.A.S.U.

  	
   

  	
  Title: REPRÉSENTANT PERMANENT DE LA
  SOCIÉTÉ SETAF PRESIDENTE DE MATADOR S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   ANGOR
  S.A.S.U.

  	
   

  	
  PEARLOR S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   By:

  	
  /s/ Laurent Renard

  	
   

  	
  By: 

  	
  /s/ Laurent Renard

  
	
   Name:
  LAURENT RENARD

  	
   

  	
  Name: LAURENT RENARD

  
	
   Title: REPRÉSENTANT PERMANENT DE
  LA SOCIÉTÉ  SETAF PRESIDENTE DE ANGOR S.A.S.U.

  	
   

  	
  Title: REPRÉSENTANT PERMANENT DE LA
  SOCIÉTÉ SETAF PRESIDENTE DE PEARLOR S.A.S.U.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   F.B.O.
  S.A.S.U.

  	
   

  	
  SETAF S.A.S.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   By: 

  	
  /s/ Laurent Renard

  	
   

  	
  By: 

  	
  /s/ Laurent Renard

  
	
   Name:
  LAURENT RENARD

  	
   

  	
  Name: Laurent RENARD

  
	
   Title: REPRÉSENTANT PERMANENT DE
  LA SOCIÉTÉ  SETAF PRESIDENTE DE F.B.O. S.A.S.U.

  	
   

  	
  Title: Représentant permanent de la
  société Bourbon Maritime, présidente de SETAF

  

 

11Exhibit 10.2

 

	
  MEMORANDUM OF AGREEMENT

  	
  Norwegian Shipbrokers’
  Association’s Memorandum of Agreement for sale and purchase of ships. Adopted
  by The Baltic and International Maritime Council (BIMCO) in 1956.

  Code-name

  SALEFORM 1993

  Revised 1966, 1983 and
  1986/87.

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  Dated: 3
  June 2010

  
	
   

  

 

HESPEROS HOLDINGS S.A.

hereinafter called the
Sellers, have agreed to sell, and

Genco Shipping & Trading, 299 Park
Avenue, New York NY

hereinafter called the
Buyers, have agreed to buy

 

Name:  M/V HANDY BAY

 

Classification
Society/Class: American
Bureau of Shipping

 

Built: 2010                        
By: SPP SHIPBUILDING CO., LTD.

 

Flag: Republic of Liberia  Place of Registration: Monrovia

 

Call Sign: A8UY3               Grt/Nrt:
23,456/11,522

 

Register Number: 9450715

 

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

 

Definitions

 

“Banking days” are days
on which banks are open both in the country of the currency stipulated for the
Purchase Price in Clause 1 and in the place of closing stipulated in Clause 8.

 

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

 

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

 

1.        Purchase Price US$ 33,250,000
(Thirty-three million two hundred and fifty thousand  United
States Dollars)

 

2.        Deposit

 

As security for the
correct fulfillment of this Agreement the Buyers shall pay a deposit of 10 %
(ten per cent) of the Purchase Price within three
(3) New York banking days after
both parties have signed this agreement by fax/email exchange and all subjects
are lifted. This deposit shall be placed with the Sellers nominated bank in Monaco or Switzerland
or London and held by them in a joint account for the Sellers or their nominee and the Buyers or their nominee, to be released in
accordance with joint written instructions of the Sellers and the Buyers.
Interest, if any, to be credited to the Buyers. Any fee charged for holding the
said deposit shall be borne equally by the Sellers and the Buyers.

 

3.        Payment

 

The balance Purchase Price shall be paid in
full free of bank charges to the Sellers
nominated bank in London or Monaco or Switzerland (non Eurozone) on
delivery of the Vessel, but not later than 3 banking days after the Vessel is
in every respect physically ready for delivery in accordance with the terms and
conditions of this Agreement and Notice of Readiness has been given. The day on which the Notice of Readiness is given
shall not be included for the purpose of counting the number of days in the
preceding sentence.

 

 

4.        Inspections

 

The Buyers have waived their right
to inspect the Vessel and the Class Records and have accepted same. The
Buyers have the right to inspect the Vessel and Class records but it does
not constitute a subject to the sale, therefore this sale is outright and
definite with delivery ‘asis’, subject only to the terms and conditions of this
Agreement.

 

5.        Notices, time and place of delivery

 

a)        The Sellers shall keep the Buyers well informed of the
Vessel’s itinerary and shall provide the Buyers with 30, 15, 10, 5 and 3 days
notice of the estimated time of arrival at the intended place of delivery. When
the Vessel is at the place of delivery and in every respect physically ready
for delivery in accordance with this Agreement, the Sellers shall give the
Buyers a written Notice of Readiness for delivery.

 

b)        The Vessel shall be delivered and taken over safely
afloat at a safe and accessible berth or anchorage free of cargo in Sellers’
option worldwide excluding areas prohibited by the  United States of America’s, UN’s or EU’s laws and
regulations in the Sellers’ option.

 

Expected time of
delivery: Between 15th June 2010 and
15th August 2010, a schedule to be mutually decided upon.

 

Date of cancelling (see
Clauses 5 c), 6 b) (iii) and 14): 15th
August 2010

 

c)        If the Sellers anticipate that, notwithstanding the
exercise of due diligence by them, the Vessel will not be ready for delivery by
the cancelling date they may notify the Buyers or
their brokers in writing stating the date when they anticipate that
the Vessel will be ready for delivery and propose a new cancelling date. Upon
receipt of such notification the Buyers shall have the option of either
cancelling this Agreement in accordance with Clause 14 within 7 running days of
receipt of the notice or of accepting the new date as the new cancelling date.
If the Buyers have not declared their option within 7 running days of receipt
of the Sellers’ notification or if the Buyers accept the new date, the date
proposed in the Sellers’ notification shall be deemed to be the new cancelling
date and shall be substituted for the cancelling date stipulated in line 61.

 

If this Agreement is
maintained with the new cancelling date all other terms and conditions hereof but excluding the requirement to give advance advice
to Buyers of the

 

 

expected readiness of the Vessel contained in Clauses 5 a) and 5 c) shall
remain unaltered and in full force and effect however
buyers do not waive right to receive applicable notices. Cancellation
or failure to cancel shall be entirely without prejudice to any claim for
damages the Buyers may have under Clause 14 for the Vessel not being ready by
the original cancelling date.

 

The Sellers to keep the Buyers
informed about the itinerary of the Vessel.

 

d)       Should the Vessel become an actual,
constructive or compromised total loss before delivery the deposit together
with interest earned shall be released immediately to the Buyers whereafter
this Agreement shall be null and void.

 

6.        Drydocking/Divers Inspection

 

The Sellers are not required to
drydock the Vessel. Sellers shall give Buyers 4 days notice of the intended
place where the vessel will be available for underwater inspection subject to
prompt availability, within 10 days of signing the MOAs. It is noted that the
Buyers wish to take the vessel promptly. Notwithstanding anything in this
clause, the Sellers shall not be held in default pursuant to clause 14 should
the Buyers be unable to arrange and underwater diving inspection at a suitable
port by the cancelling date.

 

The Buyers shall have the right at
their expense to arrange for an underwater inspection by a diver approved by
the Classification Society prior to the delivery of the vessel. In the event
that the Buyers fail to declare their right of underwater inspection as
hereinabove mentioned or non-attendance of their nominated divers within 24
(twenty four) hours after the vessel is ready in all respects for said underwater
inspection, the Buyers shall be deemed

 

 

to have waived such underwater
inspection and the Sellers may tender Notice of Readiness in accordance with
the provisions of this Agreement.

 

The Sellers shall at their cost make
the Vessel available for such underwater inspection. The extent of the
underwater inspection shall be in accordance with the Classification Society
practices. If the conditions at the port of delivery are unsuitable for such
underwater inspection, to be decided by Class, the Sellers shall make the
vessel available at a suitable alternative place near to the delivery port. If
the rudder, propeller, bottom or other underwater parts below the deepest load
line are found broken, damaged or defective so as to affect the Vessel’s Classification
Society, the Sellers are to pay for the cost of the underwater inspection and
the Classification Society attendance, otherwise the Buyers are to pay for the
cost of underwater inspection and the Classification Society attendance.

 

If damage affecting Classification
Society is found but Classification Society do not require same to be until the
next scheduled drydocking, the Buyers shall have to take delivery of the Vessel
with such damage unrepaired. The Sellers shall pay the Buyers the direct cost
of repairs required to repair said damage affecting Classification Society to
the satisfaction of the Classification Society without condition/recommendation
excluding tank cleaning, desluging, drydocking and general services expenses.
The Buyers and the Sellers shall each approach a major shipyard in Asia
(Dubai-China range) promptly to determine the direct cost of repairs based upon
the repairs being carried out in Asia (Dubai-China range) excluding the costs
of tank cleaning, deslugging, drydocking and general services expenses as
mentioned above. The direct cost shall be based upon the arithmetic average of
the quotations from the above (2) major shipyards and the amount to be paid
shall be final and binding. The Sellers shall pay the Buyers as soon as
possible but within 5 (five) running days after delivery of the Vessel.

 

If damage affecting Classification
Society is found and Classification Society require same to be repaired
immediately, then the Sellers shall drydock the Vessel and repair such damage
to the satisfaction of the Classification Society without
condition/recommendation at their cost and time in accordance with Clause 6 of
this Agreement. During such drydocking, the Buyers have the right to have 2
(two) representatives attend at the Buyers sole risk and expenses and to paint
the Vessel’s bottom and to carry out other minor works, subject to the Sellers’
approval which is not to be unreasonably withheld, without interference to the
Sellers’ repair works but always excluding hot works, in drydock, against the
Buyers signing the Sellers’ usual Letter of Indemnity and provided such
attendance and painting does not interfere with the Sellers’ work. If the
Sellers’ work is completed whilst the Buyers’ painting work is still in
progress then delivery shall be in drydock.

 

If the vessel is required to be
drydocked in accordance with the provisions hereof, notwithstanding Clause 5
hereof, the Vessel shall be delivered at the port of the dockyard and the
cancelling date as per Clause 5 hereof shall be automatically extended to cover
all the time for positioning to, waiting for, any carrying out the drydock and
the repairs required by Classification Society but limited to a maximum of 30
(thirty) running days, The contents of Clause 5c will apply in that instance as
well.

 

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

 

(i) the Classification Society may require survey of
the tailshaft system, the extent of the survey being to the satisfaction of the Classification
surveyor. If such survey is not required by the Classification Society, the
Buyers shall have the right to require the tailshaft to be drawn and surveyed
by the Classification Society, the extent of the survey being in accordance
with the Classification Society’s rules for tailshaft survey and consistent
with the current stage of the Vessel’s survey cycle. The Buyers shall declare
whether they require the tailshaft to be drawn and surveyed not later than by
the completion of the inspection by the Classification Society. The drawing and
refitting of the tailshaft shall be arranged by the Sellers. Should any parts
of the tailshaft system be condemned or found defective so as to affect the
Vessel’s class, those parts shall be renewed or made good at the Sellers’
expense to the satisfaction of the Classification Society without
condition/recommendation*.

 

(ii) the expenses relating to the survey of the
tailshaft system shall be borne by the Buyers unless the Classification Society
requires such survey to be carried out, in

 

 

which case the Sellers shall pay these expenses. The
Sellers shall also pay the expenses if the Buyers require the survey and parts
of the system are condemned or found defective or broken so as to affect the
Vessel’s class*.

 

(iii) the expenses in connection with putting the
Vessel in and taking her out of drydock, including the drydock dues and the
Classification Society’s fees shall be paid by the Sellers if the
Classification Society issues any condition/recommendation* as a result of the
survey or if it requires survey of the tailshaft system. In all other cases the
Buyers shall pay the aforesaid expenses, dues and fees.

 

(iv) the Buyers’ representative shall have the right
to be present in the drydock, but without interfering with the work or
decisions of the Classification surveyor.

 

(v) the Buyers shall have the right to have the
underwater parts of the Vessel cleaned and painted at their risk and expense
without interfering with the Sellers’ or the Classification surveyor’s work, if
any, and without affecting the Vessel’s timely delivery. If, however, the
Buyers’ work in drydock is still in progress when the Sellers have completed
the work which the Sellers are required to do, the additional docking time
needed to complete the Buyers’ work shall be for the Buyers’ risk and expense.
In the event that the Buyers’ work requires such additional time, the Sellers
may upon completion of the Sellers’ work tender Notice of Readiness for
delivery whilst the Vessel is still in drydock and the Buyers shall be obliged
to take delivery in accordance with Clause 3, whether the Vessel is in drydock
or not and irrespective of Clause 5 b).

 

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

 

If Sellers’ works are completed
before Buyers’ works (if any), and if Buyers’ work will be completed before the
expiration of the three (3) days notice of readiness, the Seller will shift the
Vessel out of drydock to a place of delivery before the expiration of the three
(3) day period.

 

If the Buyers accept delivery of the
Vessel in drydock, the Sellers shall deliver to the Buyers at the time of
closing evidence that the Sellers have satisfied their financial obligations to
the drydock, shipyard or other similar facility, and to any subcontractors, and
that such drydock, shipyard or other similar facility and subcontractors waive
any and all right to detain, arrest or attach the Vessel for any financial
obligation of the Sellers to such drydock, shipyard or other similar facility
and subcontracts, including but not limited to tugboats engaged to assist the
Vessel to depart from the drydock or shipyard or other similar facility.

 

For the avoidance of doubt, the
vessel will not be delivered under this clause 6 at any port prohibited by the
United States of America, the European Union or the United Nations.

 

7.        Spares/bunkers, etc.

 

The Sellers shall
deliver the Vessel to the Buyers with everything belonging to her on board and
on shore excluding models. All
spare parts and spare equipment including spare tail-end shaft(s) and/or spare
propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of
inspection used or unused, whether on board or not shall become the Buyers’
property, but spares on order are to be excluded. Forwarding charges, if any,
shall be for the Buyers’ account. The Sellers are not required to replace spare
parts including spare tail-end shaft(s) and spare propeller(s)/propeller
blade(s) which are taken out of spare and used as replacement prior to
delivery, but the replaced items shall be the property of the Buyers. The radio
installation and navigational equipment shall be included in the sale without
extra payment if they are the property of the Sellers. Unused stores shall be
included in the sale and be taken over by the Buyers without extra payment Provisions and bonds are property of crew and are to
be taken over and paid for by the Buyers at a price to be agreed with Vessel’s
Master and/or Chief Steward as representative of crew but if Buyers do not wish
to take over and pay for such provisions and bonds then it shall be at Master’s
discretion to remove same or leave on board free of charges to Buyers excluding
bonded cigarettes which cannot be taken ashore

 

 

by
law.

 

The Sellers have
the right to take ashore crockery, plates, cutlery, linen and other articles
bearing the Sellers’ flag or name, provided they replace same with similar
unmarked items. Library, forms, etc., exclusively for use in the Sellers’
vessel(s), shall be excluded without compensation. Captain’s, Officers’ and
Crew’s personal belongings including the slop chest are to be excluded from the
sale, as well as the following additional items (including items on hire): All items on hire such as but not limited to, Ashland
Gas bottles and Videotel Library together with the officers’/masters’/crews’
personal effects, pressure/tempreture calibrators, breathing air compressor,
freon recovery uits, computers, spos, portable cargo holds cleaning equipment
sass (contracted) are exclueded. Tempus system. Further items will be advised.

 

The Buyers shall
take over the remaining bunkers and unused/unbroached lubricating oils and grease in storage tanks and sealed
drums and pay the Sellers’ net invoiced price
(at port of last supply prior to delivery) against supporting invoices.
Payment under this Clause shall be made at the same time and place and in the
same currency as the Purchase Price.

 

8.        Documentation

 

The place of closing: London or
Piraeus in Sellers option

 

In exchange for
payment of the Purchase Price the Sellers shall furnish the Buyers with
delivery documents, as described in any
attached Addendum to this Agreement

 

At the time of
delivery the Sellers shall hand to the Buyers the classification certificate(s)
as well as all plans etc., which are on board the Vessel. Other certificates
which are on board the Vessel shall also be handed over to the Buyers unless
the Sellers are required to retain same, in which case the Buyers to have the
right to take copies. Other technical documentation which may be in the
Sellers’ possession shall be promptly forwarded to the Buyers at their expense,
if they so request. The Sellers may keep the Vessel’s log books but the Buyers
to have the right to take copies of same. The
vessel’s HSEQMS, PCSOPEP, SOPER, SSP, SSA, NTVRP, NTCAVCP, will be 

 

 

removed
and no copies will be given to Buyers. Vessel’s CSR will remain on board
following delivery under this Agreement. Original SMC and ISSC will be removed
but the Buyers will have  the right to take copies.

 

9.        Encumbrances

 

The Sellers
warrant that the Vessel, at the time of delivery, is free from all
encumbrances, mortgages and maritime liens or any other debts whatsoever. The
Sellers hereby undertake to indemnify the Buyers against all consequences of
claims made against the Vessel which have been incurred prior to the time of
delivery.

 

10.      Taxes, etc.

 

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

 

11.      Condition on delivery

 

The Vessel with
everything belonging to her shall be at the Sellers’ risk and expense until she
is delivered to the Buyers, but subject to the terms and conditions of this
Agreement she shall be delivered and taken over on asis basis. National/International trading certificates (namely
safety construction, safety radio, safety equipment, loadline) valid at the
time of delivery. CSM up to date but extension acceptable.

 

At the time of delivery, the Vessel
will be delivered in Class without recommendations affecting class. The Buyers
are on Notice that due to vessel being recently delivered from shipyard she
carries Interim Class Certificate and Interim Load Lin Certificate are valid
until September 2010.

 

12.      Name/markings

 

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

 

13.      Buyers’ default

 

Should the deposit
not be paid in accordance with Clause 2, the Sellers have the right to cancel
this Agreement, and they shall be entitled to claim compensation for their
losses and for all expenses incurred together with interest at 10 percent per annum.

 

Should the
Purchase Price not be paid in accordance with Clause 3, the Sellers have the
right to cancel the Agreement, in which case the deposit together with interest
earned shall be released to the Sellers. If the deposit does not cover their
loss, the Sellers shall be entitled to claim further compensation for their
losses and for all expenses incurred together with interest at 10 percent per annum.

 

14.      Sellers’ default

 

Should the Sellers
fail to give Notice of Readiness in accordance with Clause 5 a) or fail to be
ready to validly complete a legal transfer by the date stipulated in Clause 5b) the Buyers shall have

 

 

the option of cancelling this Agreement
provided always that the Sellers shall be granted a maximum of 3 banking days
after Notice of Readiness has been given to make arrangements for the
documentation set out in Clause 8. If after Notice of Readiness has been given
but before the Buyers have taken delivery, the Vessel ceases to be physically
ready for delivery and is not made physically ready again in every respect by
the date stipulated in Clause 5b, the
Buyers shall retain their option to cancel. In the event that the Buyers elect to
cancel this Agreement the deposit together with interest earned shall be
released to them immediately.

 

Should
the Sellers fail to give Notice of Readiness by the date stipulated in Clause 5b) or fail to be ready to validly complete a legal
transfer as aforesaid they shall make due compensation to the Buyers for their
loss and for all expenses together with interest if their failure is due to
proven negligence and whether or not the Buyers cancel this Agreement.

 

15.      Buyers’ representatives

 

After this Agreement has been signed by both
parties and the deposit has been lodged, the Buyers have the right to place two

representatives on board the Vessel at their sole
risk and expense. These representatives are on board for the purpose of familiarisation
and in the capacity of observers only, and they shall not interfere in any
respect with the operation of the Vessel. The Buyers’ representatives shall
sign the Sellers’ letter of Indemnity prior to their embarkation

 

16.      Arbitration

 

a)*      This Agreement shall be governed by and construed in
accordance with English law and any dispute arising out of this Agreement shall
be referred to arbitration in London in  accordance with the Arbitration Acts 1996
or any statutory modification or re-enactment thereof for the time being in
force, one arbitrator being appointed by each party. On the receipt by one
party of the nomination in writing of the other party’s arbitrator, that party shall
appoint their arbitrator within fourteen days, failing which the decision of
the single arbitrator appointed shall apply. If two arbitrators properly
appointed shall not agree they shall appoint an umpire whose decision shall be
final.

 

17) The agreement is subject to the Buyers obtaining the
necessary financing within three weeks of both Buyer and Sellers signing the
MOA.

 

18) The Vessel is subject to a Charter Party to Cargill. The
Sellers agree to exercise their best endeavours to receive Charterers’
(“Cargill”) approval to transfer by novation or otherwise of the charter for
the Vessel to the Buyers of the existing charter agreement with Cargill which
to be attached to this agreement. The Vessel is chartered to Cargill on the
basis of minimum rate of USD 8,500 per day and a maximum rate of USD 13,500 per
day with a profit split above the maximum rate of 50/50. The rate is to be
calculated on the basis of the ...BHSI plus 15% (i.e. 115 pcent of same). The
calculation is to be made monthly on the basis of... last ten trading Baltic
session days. The average to apply and the charter hire to be payable every 15 days.
The duration of this transaction is to be 35/37 months +/- 15 days from the
date of the Vessel’s delivery.

 

The following wording to be used in any novation agreement
under the trading exclusions if same

 

 

not already in the charterparty: “Any country or area that
it blacklisted by or to which the vessel is prohibited to trade by the U.N. and/or
U.S.A and/or vessel’s flag state”

 

19) As per the SHIPMAN 98,
Shipmangement Agreement, it is agreed that Crew Management (Box 5), Technical
Management (Box 6), Insurance Arrangements (Box 8) of the Vessel to remain
with Metrostar Management Corp. and Commercial/financial and all corporate
responsibilities to be with Buyers. Metrostar Management Corp. will document
the scope of their Shipmanagement duties in individual Shipmanagement
Agreements in SHIPMAN 98 form (as amended) for the Vessel. The parties to
attach agreed SHIPMAN 98 Shipmangement Agreement to the MOA.

 

20) Sellers will seek to obtain the assingment of shipyard
warranties to buyers or failing that agree to act as agents on behalf of buyers
in processing any warranty claims.

 

21) This Agreement is to be kept strictly private and
confidential save for any disclosure required by the securities laws of the
United States of America.

 

	
  For
  the Buyers

  	
   

  	
  For
  the Sellers

  
	
   

  	
   

  	
   

  
	
  /s/ Robert Gerald Buchanan

  	
   

  	
  /s/ Achilleas Stergiou

  
	
  Robert Gerald Buchanan

  	
   

  	
  Achilleas Stergiou 

  
	
  President

  	
   

  	
  President

  

 

This
document is a computer generated copy of ‘SALEFORM 1993”. printed by
authority of the Norwegian Shipbrokers’ Association, using software which is
the copyright of Strategic Software Ltd. Any insertion or deletion to the form
must be clearly visible. In the event of any modification made to the
preprinted text of this document, the original document shall apply, The
Norwegian Shipbrokers’ Association and Strategic Software Ltd. assume no
responsibility for any loss or damage caused as a result of discrepancies
between the original approved document and this document.

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