Document:

Exhibit 10.32

 

	
   

  	
  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: 7th February 2005

 

MS “E.R. Auckland” Schiffahrtsgesellschaft GmbH & Co. KG

c/o E.R. Schiffahrt GmbH & Cie. KG, Bel
den Miihren 1, 20457 Hamburg/Germany

 

hereinafter called the
Sellers, have agreed to sell, and

AUCKLAND MARINE INC.

80 Broad Street Monrovia, Liberia C/o DANAOS SHIPPING CO LTD
14, Akti Kondyli

185 45 Piraeus Greece

 

hereinafter called the
Buyers, have agreed to buy

 

Name: E.R. AUKLAND

 

Classification Society/Class:
GL

 

	
  Built: 2004

  	
   

  	
       By:
  Hyundai Samho, Korea

  
	
   

  	
   

  	
   

  
	
  Flag: Liberia

  	
   

  	
  Place of Registration: Monrovia

  
	
   

  	
   

  	
   

  
	
  Call Sign: A8DZ2

  	
   

  	
       Grt/NrtGT/NT:
  41,855 / 25,310

  
	
   

  	
   

  	
   

  
	
  Register Number:
  204

  	
   

  	
   

  

 

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$ 61,750,000 (Ie United States
Dollars Sixty One Million, Seven Hundred and Fifty Thousand)

 

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 3
(three)
                      banking
days after
from the date of this Agreement has been signed by both parties by fax and the tripartite
agreement is signed by Sellers Buyers and CSAV as Charterers (see clause 17).
This deposit shall be placed with

 

Bank: HSH Nordbank

Accnt-Nr. 1100 172 687

Swift: HSH NDE HH

 

and held by them in a joint
account for the Sellers and the Buyers, to be released in accordance with joint
written instructions of the Sellers and the Buyers. Interest, if any, to
be credited to the  and
split between the
Buyers and  Sellers equally. Any fee charged for
holding the said deposit shall be borne equally by the Sellers and the Buyers.
Also a further 10% to be
in the form of corporate guarantee, as per attached wording, to be issued by
Danaos Holdings Limited. Fax copy to be provided simultaineously with Buyers
signing the MoA by fax and original to be provided with signed original MoA.

 

 

The said Purchase Price shall
be paid in full free of bank charges to

Bank: HSH Nordbank

BLZ: 200 500 00

Accnt-Nr. USD: 1100152506

IBAN USD: DE06210500001100152506

SWIFT: HSH NDE HH_

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 in accordance with Clause 5.

 

4.                         Inspections

 

a)*                  The
Buyers have inspected and accepted the Vessel’s classification records. The
Buyers have also inspected the Vessel at/in                       
on                       
and have accepted the Vessel following this inspection and the sale is outright
and definite, subject only to the terms and conditions of this Agreement. Sellers to permit Buyers to have
access to vessels class records at any time prior to vessels delivery within
Germanischer Lloyds normal office hours at Buyers cost and expenses. The
relative authorisation to be sent to GL shortly after sale is definite and
deposit and corporate guarantee lodged/provided

 

b)*                 The Buyers
shall have the right to inspect the Vessel’s classification records and declare
whether same are accepted or not within

 

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

 

The Buyers shall undertake
the inspection without-undue delay to the Vessel. Should the Buyers cause undue
delay they shall compensate the Sellers for the losses thereby incurred. The
Buyers shall inspect the Vessel without opening up and without cost to the-
Sellers. During the inspection, the Vessel’s deck and engine log books shall be
made available for examination by the Buyers. If the Vessel is accepted after
such inspection, the-sale shall become outright and definite, subject only to
the terms and conditions of this Agreement, provided the Sellers receive
written notice of acceptance from the Buyers within 72 hours after completion
of such inspection. Should notice of acceptance of the Vessel’s classification
records and of the Vessel not be received by the Sellers as aforesaid, the
deposit together with interest earned shall be released immediately to the
Buyers, whereafter this Agreement shall be null and void.

 

*                            4 a) and 4b) are alternatives; delete whichever is
not applicable. In the absence of deletions, alternative 4a) to apply.

 

5.                         Notices,
time and place of delivery. See also clause
17

 

a)                         The
Sellers shall keep the Buyers well informed of the Vessel’s itinerary after 90 days notice has been tendered
and shall provide the Buyers with 90, 60, 45, 30, 20, 10, 7, 5, 3 and 1 days notice of the
estimated time of arrival at the intended place of drydocking/underwater
inspection/delivery. When the Vessel is at the place of delivery and in
every respect physically ready for delivery in accordance with this Agreement,
the Sellers shall give the Buyers a 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 at/in

 

In the Sellers’ option.

 

Expected time of delivery:

 

Data of cancelling (see
Clauses 5 c), 6 b) (iii) and 14):

 

 

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 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 including those contained
in Clauses 5 a) and 5 c) shall remain unaltered and in full force and effect.
Cancellation or failure to cancel shall be entirely without prejudice to any
claim for damages the Buyers may have under Clause 14 for the Vessel not being
ready by the original cancelling date.

 

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

 

a)**           The Sellers shall
place the Vessel in drydock at the port of delivery for inspection by the
Classification Society of the Vessel’s underwater parts below the deepest load
line, the extent of the inspection being in accordance with the Classification
Society’s rules. If the rudder, propeller, bottom or other underwater parts
below the deepest load line are found broken, damaged or defective so as to
affect the Vessel’s class, such defects shall be made good at the Sellers’
expense to the satisfaction of the Classification Society without
condition/recommendation*.

 

b)**          (i)
The Vessel is to be delivered without drydocking. However, the Buyers shall
have the right at their expense to arrange for an underwater inspection by a
diver approved by the Classification Society prior to the delivery of the
Vessel. The Sellers shall at their cost make the Vessel available for such
inspection. The extent of the inspection and the conditions under which it is
performed shall be to the satisfaction of the Classification Society. If the
conditions at the port of delivery are unsuitable for such inspection, the
Sellers shall make the Vessel available at a suitable alternative place near to
the delivery port.

 

However, not withstanding what has been mentioned above, if
any damage is found to the rudder, propeller, bottom or other underwater parts
below the deepest load line which in the opinion of class would impose a class
condition, but does not affect vessel’s ability to trade until next scheduled
drydocking, Buyers and Sellers shall agree to an amount of compensation to be
deducted from the purchase price and Buyers shall accept delivery of the vessel
including the condition(s) raised by the divers inspection.

 

If Sellers and Buyers cannot agree a compensation figure
within 1 working day, then the figure to apply is to be the average quotes of
estimated costs of repairs obtained from 2 first class yards. If the vessel
delivers in the Far East then estimated cost of repairs to be obtained from 2
First Class Far Eastern yards, if the vessel delivers in Europe then estimated
cost of repairs to be obtained from 2 First Class European yards, one appointed
by the Sellers and one appointed by the Buyers. Compensation is to be the
direct actual costs of repairs excluding drydock time, services and off-hire.

 

If any damage is found to the underwater parts which in the
opinion of class would impose a class condition and can not be postponed until
the next drydocking, then drydocking arrangements as per clause 6 (b) (ii) and
(b) (iii) below shall apply with Buyers right to attend same as observers only
without interference to Sellers work.

 

Fees for class attendance during divers inspection to be for
Buyers account.

 

 

(ii) If the rudder, propeller, bottom or other
underwater parts below the deepest load line are found broken, damaged or
defective so as to effect the Vessel’s class, then unless repairs can be
carried out afloat to the satisfaction of the Classification Society, the
Sellers shall arrange for the Vessel to be drydocked at their expense for inspection
by the Classification Society of the Vessel’s underwater parts below the
deepest load line, the extent of the inspection being in accordance with the
Classification Society’s rules. If the rudder, propeller, bottom or other
underwater parts below the deepest load line are found broken, damaged or
defective, so as to affect the Vessel’s class, such defects shall be made good
by the Sellers at their expense to the satisfaction of the Classification
Society without condition/recommendation*. In such event the Sellers are to pay
also for the cost of the underwater inspection and the Classification Society’s
attendance.

 

(iii) If the Vessel is to be drydocked pursuant to
Clause 6 b) (ii) and no suitable dry-docking facilities are available at the
port of delivery, the Sellers shall take the Vessel to a port where suitable drydocking facilities
are available, whether within or outside the delivery range as per Clause 5 b).
Once drydocking has taken place the Sellers shall deliver the Vessel at a port
within the delivery range as per Clause 5 b) which shall, for the purpose of
this Clause, become the new port of delivery. In such event the cancelling date
provided for in Clause 5 b) shall be extended by the additional time required
for the drydocking and extra steaming, but limited to a maximum of 14 running
days.

 

c)        If the Vessel
is drydocked pursuant to Clause 6 a) or 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.

 

 

7.        Spares/bunkers,
etc.

 

The Sellers shall deliver the Vessel to the Buyers with
everything belonging to her on board and on shore and on order. 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 and provisions shall be included
in the sale and be taken over by the Buyers without extra payment.

 

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): items currently on
hire: (though it is understood that hired items may be added at a later stage)

 

• Globe Wireless Equipment incl.
SSAS System

• Seagull/ Videotel training
software and videos not owners property and have to be returned.

• Weather Observation
Instruments from DWD is property of the Federal Republic of Germany. (It
consists of a laptop PC, a barograph, a barometer, a thermometer and a bucket.)

 

The Buyers shall take over the remaining bunkers
and unused lubricating oils in storage tanks and unbroached sealed
drums and designated
storage tanks at Sellers last net paid prices as evidenced  by vouchers/suppliers invoices, including discounts pay
the current net market price (excluding barging expenses) at-the port and date of
on delivery of the Vessel. Bunkers to be paid at Sellers last
net paid prices as evidenced by  vouchers/suppliers
invoices, including discounts in the event of charter free delivery.
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: Hamburg, Germany

 

In exchange for payment of the Purchase Price the
Sellers shall furnish the Buyers with delivery documents which may be reasonably required for
the legal transfer of the vessel and for her registration under new flag and
ownership.  namely such list to be incorporated in an
addendum to this MoA:

 

a)                         Legal
Bill of Sale in a form recordable in                                   —(the
country in which the Buyers are to register the Vessel), warranting that the
Vessel is free from all encumbrances, mortgages and-maritime liens or any other
debts-or claims whatsoever, duly notarially attested-and legalized by the
consul of such country or other competent authority.

 

b)                        Current
Certificate of Ownership issued by the competent authorities of the flag state
of the Vessel.

 

c)                         Confirmation
of Class issued within 72 hours prior to delivery.

 

d)                        Current
Certificate issued by the competent authorities stating that the Vessel-is-free
from registered encumbrances.

 

 

e) Certificate of deletion of the Vessel from the
Vessel’s registry or other official evidence of deletion appropriate to the
Vessel’s registry at the time of delivery, or, in the event that the registry
does not as a matter of practice issue such documentation immediately, a
written undertaking by the Sellers to-effect deletion from the Vessel’s
registry forthwith and furnish a Certificate or other official evidence of
deletion to the Buyers promptly and latest within~4 (four) weeks-after the
Purchase Price has been paid and the Vessel-has been delivered.

 

f)                           Any
such additional documents as may reasonably be required by the competent authorities
for the purpose of-registering the Vessel, provided the Buyers notify the
Sellers of any such documents as seen as possible after-the date of this
Agreement.

 

At the time of delivery the Buyers and Sellers shall
sign and deliver to each other a Protocol of Delivery and Acceptance confirming
the date and time of delivery of the Vessel from the Sellers to the Buyers.

 

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.

 

9.        Encumbrances

 

The Sellers warrant that the Vessel, at the time of
delivery, is free from all charters unless vessel is delivered as per Clause 17 of Appendix No.1
to the M.o.A., 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 as she was at the time of inspection, fair wear and tear
excepted. However, the Vessel shall be delivered with her GL class fully maintained without
condition/recommendation*, free of average damage affecting the Vessel’s class,
and with her classification certificates and national certificates, as well as
all other certificates the Vessel had at the time of inspection, valid and unextended
without condition/recommendation” by Class or the relevant authorities at the
time of delivery. All
continuous survey cycles to be fully up to date at time of delivery. The
Sellers shall notify the Classification Society of any matters coming to their
knowledge prior to delivery which upon being reported to the Classification
Society would lead to the  withdrawl
of the vessels class or to the imposition of a recommendation relating to her
class. “Inspection”
in this Clause 11, shall mean the Buyers’ inspection according to Clause 4 a)
or 4 b), if applicable, or the Buyers’ inspection prior to the signing of this
Agreement. If the Vessel is taken over without inspection, the date of this
Agreement shall be the relevant date.

 

*                            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.

 

12.      Name/markings

 

Upon delivery the Buyers undertake to change the name
of the Vessel and alter funnel markings unless the vessel
is delivered to and taken over by Buyers with the balance of time charter to
CSAV

 

 

Should the deposit not be paid and/or the Corporate Guarantee have
not been provided 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.

 

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.

 

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 line 61 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 line 61 and new Notice of
Readiness given, 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 line 61 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 and
Corporate Guarantee has been lodged, the Buyers have the right
to place two representatives on board the Vessel at their sole risk and expense for the last 90 days prior to the intended
delivery date upon  arrival at on or about

 

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.

 

Buyers can send maximum 1 representative to inspect each
vessel twice per annum only during port stay and without interferance or delay
to the vessel/schedule

 

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 1950 and 1979 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.  In the case of dispute one single
arbitrator to be nominated by the President of LMAA upon request of either
party whose decision shall be final.

 

b)*                 This
Agreement-shall be governed by and construed in accordance with Title
[Illegible]-of the United States Code and the Law of the State of New York and
should any dispute arise out of this Agreement,-the matter in dispute shall be
referred to three persons at New York, one to be-appointed by each of the
parties -hereto, and the third by the two so chosen; their decision or-that of
any two of them shall be final, and for-purpose of enforcing any award, this
Agreement may be made a rule of the Court.

 

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

 

 

[illegible], subject to the procedures applicable
there. The laws of LMAA shall govern this Agreement.

 

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

 

clauses 17 to 23 attached to form an
integral part of this MoA.

 

	
  For the Sellers

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   /s/ A.
  Schumacher

  	
   

  	
   

  	
   

  
	
  A. SCHUMACHER

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For the Buyers

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ illegible

  	
   

  	
   

  	
   

  

 

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.

 

 

Appendix No 1 

to the Memorandum of Agreement dated 7th February 2005

(the “M.O.A.”)

relating to m/v “ER Aukland” (the “Vessel”)

MS “E.R. Auckland” Schiffahrtsgesellschaft GmbH & Co. KG

(the “Sellers”)

and 

Auckland Marine Inc, Liberia (“Buyers”)

 

Clause 17

 

The Mv ‘E.R. Auckland’ shall be delivered in March
2007 either Time Charter Free in which case the ship to be delivered cargo free
in either 1 safe port Singapore/S Japan range or in sellers option 1 safe port
in Hamburg/Rotterdam range or with the balance of her Time charter to CSAV as
per charter party dated 02nd October 2003 at USD 29250 Pd less 1,25 pct total
commission until min 10-Mar/max 10-June 2007 in which case the Vessel to be
delivered in a mutually agreed convenient safe port within the charterers
trading range between 1st / 30th March 2007 with cancelling dates as 31st March
2007 with cargo as on board and without affecting vessels schedule and
charterers port/cargo operations. If buyers do not agree to owners proposed
port of delivery and as a consequence the delivery is thereby delayed the
cancelling dates to be extended accordingly.

 

The vessel to be delivered in a safe port safely
afloat, free of encumbrances, free of stowaways and free of maritime liens,
mortgages or any other taxes, debts or claims whatsoever. Buyers have received
a copy of the above Charter Party dated 2nd October 2003 and have
approved same.

 

Clause 18

 

Sellers to guarantee that upon signing this Memorandum
of Agreement to the best of their knowledge the vessel is not blacklisted.

 

Clause 19

 

All instruction books, drawings, plans and manuals,
onboard or ashore in owners/managers office that are in sellers possession are
to be delivered to the Buyers. Owners to forward office set as soon as possible
after delivery to Buyers nominated office. After sale is definite and Buyers
have duly fulfilled all their obligations under the MoA Sellers shall provide
one set of copies for both vessels of the following plans / documents in order
buyers to construct their standard ANKO loading software. All forwarding costs
to be for Buyers account.

 

• Capacity
plan

•
General Arrangement

•
Loading Manual

•
Trim and Stability booklet

•
Container Stowage Plan

•
Lashing Manual

•
Cargo mass diagrams for every hold (if applicable)

•
Hydrostatics

•
Cross Curves

•
Ullage tables/ Sounding tables for every compartment

•
Longitudinal distribution of lightweight or relevant strength

 

 

• Tank top
strength 

•
Position of draught marks 

•
Copy of the Loadline Certificate

 

• Lines Plan
or Offset Tables

•
In case the above are not available, the following are needed:

•
Docking plan

•
Shell expansion

•
Construction drawings (frames): Aft & fore parts and at the engine room
area

•
Bonjean Curves

 

Clause 20

 

Vessel to be delivered with a full set of container
lashing as per her cargo securing manual and in accordance with Osha rules and
regulations which to be verified by a joint survey between Buyers and Sellers
representatives. In case insufficient amount of lashing gears, Sellers to make
cash compensation to Buyers at delivery.

 

Clause 21

 

Negotiations and sale, if any, to be kept strictly private
and confidential.

 

Clause 22

 

See addition in Clause 12.

 

Sellers to produce a class maintenance certificate in
accordance with clause 11 of the MoA dated no more than 3 days prior to the
date of delivery

 

Clause 23

 

This MoA to be signed and executed simultaneously with
the MoA for “E.R Wellington”

 

 

	
  For and on behalf of Sellers

  	
   

  	
  For and on behalf of Buyers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   /s/ illegible

  	
   

  	
   

  	
  /s/ illegible

  
	
  MS ‘E.R Aukland’ Schiffahrtsgesellschaft

  	
   

  	
  Auckland Marine Inc.
  Liberia

  
	
  GmbH & Co. KGExhibit 10.33

 

	
   

  	
  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: 7th February 2005

 

MS “E.R. Wellington”
Schiffahrtsgesellschaft GmbH & Co. KG c/o E.R. Schiffahrt GmbH & Cie.
KG

 

Bei den Mühren 1, 20457 Hamburg/Germany

hereinafter called the
Sellers, have agreed to sell, and

 

WELLINGTON MARINE INC.

80 Broad Street Monrovia, Liberia C/o DANAOS SHIPPING CO LTD 14, Akti Kondyli

185 45 Piraeus Greece

 

hereinafter called the
Buyers, have agreed to buy

 

Name: E.R. WELLINGTON

 

Classification Society/Class:
GL

 

	
  Built: 2004

  	
   

  	
       By: Hyundai Samko, Korea

  
	
   

  	
   

  	
   

  
	
  Flag: Liberia

  	
   

  	
  Place of Registration: Monrovia

  
	
   

  	
   

  	
   

  
	
  Call Sign: A8EGS

  	
   

  	
       Grt/NrtGT/NT: 41,855 / 25,310

  
	
   

  	
   

  	
   

  
	
  Register Number: 205

  	
   

  	
   

  

 

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$
61,750,000 (Ie Untied States Dollars Sixty One Million, Seven Hundred and Fifty
Thousand)

 

2.        Deposit

 

As security for the correct
fulfilment of this Agreement the Buyers shall pay a deposit of 10 % (ten per
cent) of the Purchase Price within 3 (three)                      banking days after from the date of this
Agreement has been signed by both parties by
fax and the tripartise agreement is signed by Sellers Buyers and CSAV as
Charterers (see clause 17). This
deposit shall be placed with

 

Bank: HSH Nordbank 

Accn-Nr. 1100 172 693 

Swift: HSH NDE HH

 

and held by them in a joint
account for the Sellers and the Buyers, to be released in accordance with joint
written instructions of the Sellers and the Buyers. Interest, if any, to
be credited to the and split between the Buyers and Sellers
equally. Any
fee charged for holding the said deposit shall be borne equally by the Sellers
and the Buyers. Also a
further 10% to be in the form of corportate guarantee, as per attached wording,
to be

 

[ILLEGIBLE INITIALS]

 

 

3.        Payment

 

The said Purchase Price shall be paid in full free of
bank charges to

 

Bank: HSH Nordbank

BLZ: 200 500 00

Accnt-Nr. USD: 1100152521

IBAN USD: DE86210500001100152521

Swift: HSH NDE HH

 

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 in accordance with Clause 5.

 

4.        Inspections

 

a)*                  The
Buyers have inspected and accepted the Vessel’s classification records. The
Buyers have also inspected the Vessel at/in on and have accepted the
Vessel following this inspection and the sale is outright and definite, subject
only to the terms and conditions of this Agreement. Sellers to permit Buyers to have
access to vessels class records at any time prior to vessels delivery within
Germanischer Lloyds normal office hours at Buyers cost and expenses. The
relative authorisation to be sent to GL shortly after sale is definite and
deposit and corporate guarantee lodged/provided

 

b)*                 The Buyers
shall have the right to inspect the Vessel’s classification records and declare
whether same are accepted or not within

 

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

 

The Buyers shall undertake the inspection without
undue delay to the Vessel. Should the Buyers cause undue delay they shall
compensate the Sellers for the losses thereby incurred. The Buyers shall
inspect the Vessel without opening up and without cost to the Sellers. During
the inspection, the Vessel’s deck and engine log books shall be made available
for examination by the Buyers. If the Vessel is accepted after such inspection,
the-sale shall become outright and definite, subject only to the terms and
conditions of this Agreement, provided the Sellers receive written notice of
acceptance from the Buyers within 72 hours after completion of such inspection.

 

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

 

*                            4 a)
and 4b) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 4a) to apply.

 

5.                         Notices,
time and place of delivery. See also clause
17

 

a)                         The
Sellers shall keep the Buyers well informed of the Vessel’s itinerary after 90 days notice has been tendered
and shall provide the Buyers with 90, 60, 45, 30, 20, 10, 7 5, 3, and 1 days notice of the estimated time of
arrival at the intended place of drydocking/underwater inspection/delivery.
When the Vessel is at the place of delivery and in every respect physically
ready for delivery in accordance with this Agreement, the Sellers shall give
the Buyers a 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 at/in

 

in the Sellers’ option.

 

Expected time of delivery:

 

[ILLEGIBLE INITIALS]

 

 

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 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 including those contained
in Clauses 5 a) and 5 c) shall remain unaltered and in full force and effect.
Cancellation or failure to cancel shall be entirely without prejudice to any
claim for damages the Buyers may have under Clause 14 for the Vessel not being
ready by the original cancelling date.

 

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

 

a)**           The Sellers shall place the Vessel in
drydock at the port of delivery for inspection by the Classification Society of
the Vessel’s underwater parts below the deepest load line the extent of the
inspection being in accordance with the Classification Society’s rules, IF the
rudder, propeller, bottom or other underwater parts below the deepest load line
are found broken, damaged or defective so as to affect the Vessel’s class, such
defects shall be made good at the Sellers’ expense to the satisfaction of the
Classification Society without condition/recommendation*.

 

b)**          (i)
The Vessel is to be delivered without drydocking. However, the Buyers shall
have the right at their expense to arrange for an underwater inspection by a
diver approved by the Classification Society prior to the delivery of the
Vessel. The Sellers shall at their cost make the Vessel available for such
inspection. The extent of the inspection and the conditions under which it is
performed shall be to the satisfaction of the Classification Society. If the
conditions at the port of delivery are unsuitable for such inspection, the
Sellers shall make the Vessel available
at a suitable alternative place near to the delivery port.

 

However, not withstanding what has been mentioned above, if
any damage is found to the rudder, propeller, bottom or other underwater parts
below the deepest load line which in the opinion of class would impose a class
condition, but does not affect vessel’s ability to trade until next scheduled
drydocking, Buyers and Sellers shall agree to an amount of compensation to be
deducted from the purchase price and Buyers shall accept delivery of the vessel
including the condition(s) raised by the divers inspection.

 

If Sellers and Buyers cannot agree a compensation figure
within 1 working day, then the figure to apply is to be the average quotes of
estimated costs of repairs obtained from 2 first class yards. If the vessel
delivers in the Far East then estimated cost of repairs to be obtained from 2
First Class Far Eastern yards, if the vessel delivers in Europe then estimated
cost of repairs to be obtained from 2 First Class European yards, one appointed
by the Sellers and one appointed by the Buyers. Compensation is to be the
direct actual costs of repairs excluding drydock time, services and off-hire.

 

If any damage is found to the underwater parts which in the
opinion of class would impose a class condition and can not be postponed until
the next drydocking, then drydocking arrangements as per clause 6 (b) (ii) and
(b) (iii) below shall apply with Buyers right to attend same as observers only
without interference to Sellers work.

 

Fees for class attendance during divers inspection to be for
Buyers account.

 

[ILLEGIBLE INITIALS]

 

 

exemption
permission is being granted by Germanischer Lloyd to trade until the next
scheduled drydocking
then unless repairs can be carried out afloat to the satisfaction of the
Classification Society, the Sellers shall arrange for the Vessel to be
drydocked at their expense for inspection by the Classification Society of the
Vessel’s underwater parts below the deepest load line, the extent of the
inspection being in accordance with the Classification Society’s rules. If the
rudder, propeller, bottom or other underwater parts below the deepest load line
are found broken, damaged or defective so as to affect the Vessel’s class, such
defects shall be made good by the Sellers at their expense to the satisfaction
of the Classification Society without condition/recommendation*. In such event
the Sellers are to pay also for the cost of the underwater inspection and the
Classification Society’s attendance.

 

(iii) If the Vessel is to be
drydocked pursuant to Clause 6 b) (ii) and no suitable drydocking facilities
are available at the port of delivery, the Sellers shall take the Vessel to a port where suitable drydocking facilities
are available, whether within or outside the delivery range as per Clause 5 b).
Once drydocking has taken place the Sellers shall deliver the Vessel at a port
within the delivery range as per Clause 5 b) which shall, for the purpose of
this Clause, become the new port of delivery. In such event the cancelling date
provided for in Clause 5 b) shall be extended by the additional time required
for the drydocking and extra steaming, but limited to a maximum of 14 running
days.

 

c)        If the Vessel is drydocked pursuant to Clause
6 a) or 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.

 

[ILLEGIBLE INITIALS]

 

 

7.        Spares/bunkers,
etc.

 

The Sellers shall deliver the
Vessel to the Buyers with everything belonging to her on board and on shore and on order. All spare parts and spare equipment including
spare tail and 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 and provisions shall be included
in the sale and be taken over by the Buyers without extra payment.

 

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): items currently on hire: (though it
is understood that hired items may be added at a later stage)

 

• Globe Wireless Equipment incl. SSAS System

• Seagull/
Videotel training software and videos not owners property and have to be
returned.

• Weather
Observation Instruments from DWD is property of the Federal Republic of
Germany. (It consists of a laptop PC, a barograph, a barometer, a thermometer
and a bucket.)

 

The Buyers shall take over
the remaining bunkers and unused lubricating oils in storage tanks
and  unbroached sealed drums and designated storage tanks at Sellers
last net paid prices as evidenced by vouchers/suppliers invoices, including
discounts pay
the current net market price (excluding barging expenses) at-the port and date of  on delivery of the Vessel. Bunkers to be paid at Sellers last
net paid prices as evidenced by vouchers/suppliers invoices, including
discounts in the event of charter free delivery.

 

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: Hamburg, Germany

 

In exchange for payment of
the Purchase Price the Sellers shall furnish the Buyers with delivery documents
which may be reasonably
required for the legal transfer of the vessel and for her registration under
new flag and ownership. namely such list
to be incorporated in an addendum to this MoA:

 

a)                         Legal
Bill of Sale in a form recordable in                                    (the country in which the Buyers are to
register the Vessel), warranting that the Vessel is free from all encumbrances,
mortgages and-maritime liens or any other debts or claims whatsoever, duly
notarially attested and  legalized by the consul of such country or
other competent authority.

 

b)                        Current
Certificate of Ownership issued by the competent authorities of the flag state
of the Vessel.

 

c)                         Confirmation
of Class issued within 72 hours prior to delivery.

 

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

 

[ILLEGIBLE INITIALS]

 

 

deletion appropriate to the
vessels registry at the time of delivery, or, in the event that the registry
does not as a matter of practice issue such documentation immediately, a
written undertaking by the Sellers to effect deletion from the Vessel’s
registry forthwith and furnish a Certificate or other official evidence of
deletion to the Buyers promptly and latest within 4 (four) weeks after the
Purchase Price has been paid and the Vessel has been delivered.

 

f)                           Any such additional documents as may
reasonably be required by the competent authorities for the purpose of
registering the Vessel, provided the Buyers notify the Sellers of any such
documents as soon as possible after the date of this Agreement.

 

At the time of delivery the
Buyers and Sellers shall sign and deliver to each other a Protocol of Delivery
and Acceptance confirming the date and time of delivery of the Vessel from the
Sellers to the Buyers.

 

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.

 

9.        Encumbrances

 

The Sellers warrant that the
Vessel, at the time of delivery, is free from all charters unless vessel is delivered as per
Clause 17 of Appendix No. 1 to the M.o.A., 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 as she was at the time of
inspection, fair wear and tear excepted. However, the Vessel shall be delivered
with her GL class fully maintained without
condition/recommendation*, free of average damage affecting the Vessel’s class,
and with her classification certificates and national certificates, as well as
all other certificates the Vessel had at the time of inspection, valid and
unextended without condition/recommendation* by Class or the relevant
authorities at the time of delivery. All continuous survey cycles to be fully up to date at time
of delivery. The Sellers shall notify the Classification Society of any matters
coming to their knowledge prior to delivery which upon being reported to the
Classification Society would lead to the withdrawl of the vessels class or to
the imposition of a recommendation relating to her class. “Inspection” in this Clause 11, shall
mean the Buyers’ inspection according to Clause 4 a) or 4 b), if applicable, or the Buyers’ inspection prior
to the signing of this Agreement. If the Vessel is taken over without
inspection, the date of this Agreement shall be the relevant date.

 

*                            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.

 

12.      Name/markings

 

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

 

 

c)                         Any
dispute arising out of this Agreement shall be referred to arbitration at London, subject to
the procedures applicable there. The laws of
LMAA shall govern this Agreement.

 

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

 

clauses 17 to 24 attached to form an integral part of this
MoA.

 

	
  For The Sellers

  
	
   

  
	
   /s/ A.
  Schumacher

  	
   

  
	
  A. SCHUMACHER

  
	
   

  
	
   

  
	
  For the Buyers

  
	
   

  
	
   /s/ illegible

  	
   

  
	
  illegible

  

 

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.

 

 

13.                  Buyers’ default

 

Should the deposit not be paid and/or the Corporate Guarantee
have not been provided 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.

 

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.

 

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 line 61 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 line 61 and new Notice of
Readiness given, 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 line 61 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 and
Corporate Guarantee has
been lodged, the Buyers have the right to place two representatives on board
the Vessel at their sole risk and expense for the last 90 days prior to the
intended delivery date upon arrival at on or about

 

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.

 

Buyers can send maximum 1 representative to inspect each
vessel twice per annum only during port stay and without interferance or delay
to the vessel/schedule

 

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 1950 and 1979 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. In the case of dispute one single
arbitrator to be nominated by the President of LMAA upon request of either
party whose decision shall be final.

 

b)*                 This
Agreement shall be governed by and construed in accordance with Title 9 of the
United States Code and the Law of the State of New York and should any dispute
arise out of this Agreement, the matter in dispute shall be referred to three
persons at New York, one to be appointed by each of the parties hereto, and the
third by the two so chosen; their decision or that of any two of them shall be
final, and for purpose of enforcing any award, this Agreement may be made a
rule of the Court.

 

 

Appendix No 1

to the Memorandum of Agreement dated 7th February 2005

(the “M.O.A.”)

relating to m/v “ER Wellington” (the “Vessel”)

MS “E.R. Wellington” Schiffahrtsgesellschaft GmbH & Co. KG (the “Sellers”)

and

Wellington Marine INC. Liberia (“Buyers”)

 

Clause 17

 

MV ‘E.R. Wellington’ to be delivered in September 2007
either Time Charter Free in which case the ship to be delivered cargo free in
either 1 safe port Singapore/S. Japan range or in sellers option 1 safe port in
Hamburg/Rotterdam range or with the balance of her Time Charter to CSAV as per
charter party dated 02nd October 2003 at USD 29250 pd less 1.25 pct total
commission until min 21-Sept/max-21-December 2007 in which case the Vessel to
be delivered in a mutually agreed convenient safe port within the charterers
trading range between 15th September/15th October 2007 with cancelling date
15th October 2007 with cargo as on board and without affecting vessels schedule
and charterers port/cargo operations. If buyers do not agree to owners proposed
port of delivery and as a consequence the delivery is thereby delayed the
cancelling date to be extended accordingly.

 

The vessel to be delivered in a safe port safely
afloat, free of encumbrances, free of stowaways and free of maritime liens,
mortgages or any other taxes, debts or claims whatsoever. Buyers have received
a copy of the above Charter Party dated 2nd October 2003 and have
approved same.

 

Clause 18

 

Sellers to guarantee that upon signing this Memorandum
of Agreement to the best of their knowledge the vessel is not blacklisted.

 

Clause 19

 

All instruction books, drawings, plans and manuals,
onboard or ashore in owners/managers office that are in sellers possession are
to be delivered to the Buyers. Owners to forward office set as soon as possible
after delivery to Buyers nominated office. After sale is definite and Buyers
have duly fulfilled all their obligations under the MoA Sellers shall provide
one set of copies for both vessels of the following plans / documents in order
buyers to construct their standard ANKO loading software. All forwarding costs
to be for Buyers account.

 

• Capacity
plan

•
General Arrangement

•
Loading Manual

•
Trim and Stability booklet

 

 

• Cross Curves
• Ullage tables/ Sounding tables for
every compartment

•
Longitudinal distribution of lightweight or relevant strength information

•
Permissible Shear Force and Bending moments limits

•
Midship section

•
Tank top strength 

•
Position of draught marks 

•
Copy of the Loadline Certificate

 

• Lines Plan or Offset Tables

In case the above are not available, the following are
needed:

• Docking plan

•
Shell expansion

•
Construction drawings (frames): Aft & fore parts and at the engine room
area

•
Bonjean Curves

 

Clause 20

 

Vessel to be delivered with a full set of container
lashing as per her cargo securing manual and in accordance with Osha rules and
regulations which to be verified by a joint survey between Buyers and Sellers
representatives. In case insufficient amount of lashing gears, Sellers to make
cash compensation to Buyers at delivery.

 

Clause 21

 

Sellers to supply to buyers
one 1/200 model of 4300 Teu sister vessels when received from the Building yard
in 2007 after delivery of the vessels to Buyers. All forwarding costs to be for
Buyers account.

 

Clause 22

 

Negotiations and sale, if any,
to be kept strictly private and confidential.

 

Clause 23

 

See addition in Clause 12.

 

Sellers to produce a class
maintenance certificate in accordance with clause 11 of the MoA dated no more
than 3 days prior to the date of delivery

 

 

Clause  24

 

This MoA to be signed and
executed simultaneously with the MoA for “E.R Auckland”

 

 

	
  For and on behalf of
  Sellers

  	
   

  	
  For and on behalf of Buyers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   /s/ illegible

  	
   

  	
   

  	
  /s/ illegible

  	
   

  
	
  MS “E.R. Wellington”
  Schiffahrtsgesellschaft

  GmbH & Co. KG

  	
   

  	
  Wellington Marine INC. Liberia

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