Document:

EX-10.7

 

Exhibit 10.7

	 	 	 
	MEMORANDUM
OF AGREEMENT

Dated: 24th March, 2005

	 	Norwegian Shipbrokers’ Association’s Memo-

random 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.

DENAK DEPOCULUK VE NAKLIYECILIK A.S. of Istanbul, Turkey 

hereinafter called the Sellers, have agreed to sell, and

LINDA LEAH SHIPCO LLC of the Marshal Islands

hereinafter called the Buyers, have agreed to buy

Name: My ‘DENAK-C’

Classification Society/Class: Lloyds Register

Built: 1997 By: Halla Samho, South Korea

Flag: Turkish Place of Registration: Istanbul, Turkey

Call Sign: TCCP9 Grt/Nrt: 38995/24436

Register Number: 876 /IMO number: 9122667

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 Usd 42,000,000 (United States Dollars Forty Two Million) Cash

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 from the date of this
Agreement and attached Addendum No.1 being signed by both
parties by fax. This deposit shall
be placed with Turk Ekonomi Bankasi, A.S., Istanbul, Turkey
(Tel: 90-212-2526780 — Miss Elvira)

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 Buyers. Any fee charged for opening the joint
account or for holding the said
deposit and for closing shall be borne equally by the Sellers and the Buyers.

3. Payment

Ninety (90) percent of the purchase money together with the value of bunkers and unused
lubricating oils in sealed/unbroached drums and designated storage tanks shall be remitted to the
Sellers nominated bank in a designated account in the name of the Buyers mortgagee bank one (1)
banking day prior to the expected date of delivery.

The said
Purchase price
ninety (90) percent of the purchase money shall be paid
together with the
ten (10) percent deposit in full free of bank charges
together with the value of bunkers and
unused lubricating oils in sealed/unbroached drums and designated storage tanks to the Setters’
nominated account with Turk Ekonomi Bankasi, Istanbul, Turkey

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 in exchange for the
delivery documentation as agreed in Addendum No.1 attached hereto,

4. Inspections

 

 

	a)* 	 	 The Buyers have inspected the vessels LR class records and accepted same and
have waived their right to physical inspection of the vessel, this sale is therefore
outright and definite 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.
	 
	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 dock 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.
	 
	*	 	4a) 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
	 
	a)	 	The Sellers shall keep the Buyers well informed of the Vessel’s itinerary and shall
provide the Buyers with 20,15,10,7 , and 3 days notice of the estimated time of arrival
at the intended place of drydocking/underwater Inspection/delivery and 48 hours definite notice 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. The Setters will use their best endeavours to
declare the actual port of delivery latest within the 15 (fifteen) day notice of expected
delivery but in any event as soon as same is known to them.
	 
	b)	 	The Vessel shall be delivered to the Buyers charter free, cargo free, free of stowaways and
taken over safely afloat at a safe and accessible port, berth or anchorage at/in the following range;

	 	(A)	 	Singapore/Japan range including Taiwan, Philippines, Indonesia Malaysia, Australia and PRC
	 
	 	(B)	 	India
	 
	 	(C)	 	Gibraltar/Skaw/full Mediterranean range including UK and Ireland excluding Libya,
Morocco, Tunisia, Algeria, Lebanon, Syria, Albania, Georgia, Abhazia
	 
	 	(D)	 	Boston/Bahia Blanca range including full Gulf of Mexico and US Gulf
	 
	 	(E)	 	Pacific coastal/North and South America
	 
	 	(F)	 	South Africa

	 	 	in the Sellers’ option.
	 
	 	 	Expected time of delivery: between 1st August, 2005 and 31st August, 2005 in the
Sellers option.
	 
	 	 	Date of cancelling (see Clauses 5 c), 6 b) (iii) and 14): 24:00 hours local time, 31st
August, 2005 in the Buyers option
	 
	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 4 working
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 4 working 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 Seller’s 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 of the vessels’
bottom and underwater parts by a diver approved by the
Lloyds Register
Classification Society in visible water with video equipment in the presence of a
Lloyds Register class surveyor and Buyers’
representative prior to the delivery of the
Vessel. The Sellers shall at their cost make the Vessel available for such
inspection at the place/time of delivery. The extent of the inspection and the
conditions under which it is performed shall be to the satisfaction of the
Classification Society and the attending class surveyor to be the sole judge as to
what constitutes clear water/suitable conditions. If the conditions at the port of
delivery are unsuitable for such inspection, the Sellers shall at their time and
at their expense make the Vessel available at a suitable alternative place near to
the delivery port.
	 
	 	 	(ii) 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, 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 the 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.
	 
	**	 	6 a) and 6 b) are alternatives; delete whichever is not applicable. In the absence
of deletions, alternative 6 a) to apply.
	 
	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) spare anchor, 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 navigational equipment,
wireless equipment radio installation and navigational equipment including GMDSS shall be included
in the sale without extra payment if they are the property of the Sellers. Tools, spare equipment, materials,
maintenance records and other unused 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 master’s slop chest are to be excluded from
the sale, as well as the following additional items (including items on hire): MARICHEM gas bottles
(The Sellers shall revert if any additional hired items)

The Buyers to pay extra only for remaining unused lubricating oils in designated storage tanks and
sealed/unbroached drums at the Sellers last nett prices supported by invoices/vouchers and bunkers
on board as per latest purchase (less discounts and barging cost) supported by the relevant
invoices. 

shall take over the remaining bunkers and unused lubricating oils in storage tanks
and sealed drums and pay the current net market price (excluding barging expenses) at the port
and date Unused lubricating oils are defined as those lubricating oils which have not
passed through the system and that are stored in designated storage tanks or in sealed
drums/barrels. The Quantities of the unused lubricating oils remaining on board on delivery shall
be agreed with a join survey between the Buyers and the Sellers representatives not later than two
(2) days prior to the delivery with an agreed allowance for the consumption up to physical
delivery.

 

 

of delivery of the
Vessel.

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/exchange of delivery documentation: The Sellers nominated place in
Istanbul, Turkey.

In exchange for payment of
the Purchase Price the Sellers shall furnish the Buyers with the
agreed delivery   documents  as per Addendum No. 1
attached hereto., namely

	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 of 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 including all
plans/instruction books on board at time of delivery and all other plans/instruction books which
are ashore  which may  be in the Sellers’ possession
and same shall be promptly forwarded to the
Buyers office at their expense, within 3
(three) working days from the date of vessels delivery,
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,
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 is. was at the
time of inspection, fair wear and tear excepted.

 

 

However, the Vessel shall be
delivered with her present class maintained without
and free of any
condition/recommendation* of class and; free of average damage affecting the Vessel’s class, and
with her classification certificates and national and
international trading certificates, to be
clean, unextended for a minimum period of 3 (three) months  as well as all other certificates the
Vessel had at the time of inspection, valid and unextended without
condition/recommendation* by the
Class or the relevant authorities at the time of delivery.
Hull and machinery continuous survey
cycles shall be upto date at the time of delivery, ” 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.

	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.

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 validity 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 fax 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 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 normal operation and safety of the Vessel/crew. The Buyers’ representatives shall
sign the Sellers’ usual P&l letter of
indemnity prior to their embarkation. Upon Buyers’
representatives boarding of the vessel the Sellers will arrange for handover of all relevant
information on board in relation to the vessels’ stores, spares,
cabin departments.

	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. Arbitrators to be members of the London Maritime
Arbitrators Association. 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 a third arbitrator an the decision of
any two of them 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. The proceedings shall be conducted in accordance with the rules of the Society of Maritime
Arbitrators, Inc. New York.
	 
	c)* 	 	 Any dispute arising out of this Agreement shall be referred to arbitration at subject to the
procedures applicable there, The laws of shall govern this Agreement.
16 a), 16 b) and 16 c) are
alternatives: delete whichever is not applicable. In the absence of deletions, alternatives 16 a)
to apply.

17. The Sellers to guarantee to their best of their knowledge that the vessel is not
blacklisted and/or boycotted by any Arab boycott league.

18. This sale is to be kept strictly private and confidential between the Buyers, Sellers and
brokers involved and is not to be reported.

	 	 	 
	For The Sellers

	 	For The Buyers
	-s- H. Sender Akcal

	 	-s- Molan’s

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.

 

 

My ‘DENAK-C’

AMENDMENT NO. 1 TO
MEMORANDUM OF AGREEMENT

     This AMENDMENT NO. 1, dated as of June 27th, 2005 (this “Amendment”), to the MEMORANDUM
OF AGREEMENT dated March 24, 2005 (the “MOA”) between DENAK DEPOCULUK VE NAKLIYECILIK A.S.
(“Sellers”) and LINDA LEAH SHIPCO LLC (“Buyers”), is entered into and effectuated by Buyers and
Sellers (collectively, the “Parties”).

WHEREAS, the Parties hereto desire to amend the MOA to accurately reflect the agreement by the
Parties.;

NOW THEREFORE, in consideration of the mutual agreements and covenants contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the Parties agree that the MOA is hereby amended as follows:

	 	1.	 	Clause 17 of the MOA is hereby deleted in its entirety:
	 
	 	2.	 	Clause 18 of the MOA is hereby amended in it entirety to read as follows:
	 
	 	 	 	“18. This sale is to be kept strictly private and confidential between the Buyers,
Sellers and brokers involved and is not to be reported; provided, however, that in
the event that the Buyer or any of its affiliates are required to make disclosure
pursuant to applicable law, regulatory authority or the rules or requirements of a
stock exchange or stock market, such party shall be entitled to make the
appropriate disclosure.”
	 
	 	3.	 	Except as expressly modified hereby, all other terms and conditions of the MOA remain in full force and effect.
	 
	 	4.	 	This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which, together, shall constitute one
Amendment.

 

 

IN WITNESS WHEREOF, this Amendment has been executed as of the date first written
above.

	 	 	 	 	 
	 	 	Sellers:
	 
	 	 	 	 
	 	 	DENAK DEPOCULUK VE NAKLIYECILIK A.S.
	 
	 	 	 	 
	 

	 	By:
	 	[ILLEGIBLE]
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Braemar Seascope
	 
	 	 	 	 
	 	 	As Agents only
	 
	 	 	 	 
	 	 	Buyers:
	 
	 	 	 	 
	 	 	LINDA LEAH SHIIPCO LLC
	 
	 	 	 	 
	 

	 	By:
	 	[ILLEGIBLE]EX-10.8

 

Exhibit 10.8

	 	 	 
	MEMORANDUM OF AGREEMENT

	 	Norwegian Shipbrokers’ Association’s Memo-
	 

	 	random of Agreement for sale and purchase of
	 

	 	ships. Adopted by The Baltic and International
	 

	 	Maritime Council (BIMCO) in 1956.
	 

	 	Code-name
	Dated:
29th March, 2005

	 	SALEFORM 1993
	 

	 	Revised 1966, 1983 and
1986/87.

IKAN BELIAK SHIPPING PTE., LTD., of Singapore

hereinafter called the Sellers, have agreed to sell, and

COAL PRIDE SHIPCO LLC, of the Marshall Islands

hereinafter called the Buyers, have agreed to buy

Name: m. v. “IKAN BELIAK”

Classification Society/Class:
Nippon Kaiji Kyokai (“NK”)

	 	 	 
	Built: 1999

	 	By: Imabari Shipbuilding Co. Ltd Marugame
	 
	 	 
	Flag: Singapore

	 	Place of Registration: Singapore
	 
	 	 
	Call Sign: 9VAF2

	 	Grt/Nrt: 37,689/24,199
	 
	 	 
	Register Number: 390141
	 	 

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$ 43,000,000 (Forty Three Million Dollars United States Currency) cash.

	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 from the date of
this Agreement has been signed on facsimile by both parties, which shall be within 3 (three) working days of the
date hereof. This deposit shall be placed with DNB NOR Bank ASA, Singapore Branch, 8 Shenton Way,
#48-02, Temasek Tower, Singapore 068811 and held by them in a joint interest bearing escrow account
No. 49995840 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 Buyers. Any fee
charged for holding the said deposit and for the opening and closing of the escrow account shall be
borne equally by the Sellers and the Buyers.

	3.	 	Payment

The
said Purchase Price (10% - ten per cent — deposit,
90% - ninety per cent cent - balance
together with the estimated amount for bunkers and lubricants payable under Clause 7 herein based
on the Master’s/Buyers’ Representative’s agreed figures and any other money payable by the Buyers
to the Sellers) shall be remitted by the Buyers and
paid in full free of bank charges to the
Sellers’nominated account with DNB NOR Bank ASA, Singapore Branch, 8 Shenton Way, #48-02, Temasek
Tower, Singapore 068811 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. See Also Clause 8.

	4.	 	Inspections
	 
	a)	 	The Buyers have inspected and accepted the Vessel’s classification records. The Buyers
have also inspected the Vessel
at/in. Portbury, Bristol/United Kingdom
on between 27th March,
2005 and 29th March, 2005 and have accepted the Vessel following this inspection and
therefore this the sale is outright and definite, subject only to the terms and conditions
of this Agreement. However the Buyers have the right to inspect the Vessel’s NK
classification records but this inspection does not constitute a subject to this sale nor
prejudice the outright nature hereof.
	 
	b)*	 	The Buyers shall have the right to inspec 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 dock 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 4 b) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 4a) to apply.
	 
	5.	 	Notices, time and place of delivery
	 
	a)	 	The Sellers shall keep the Buyers well
fully informed of the Vessel’s itinerary programme and
shall provide the Buyers with 21, 14, 10, 7, 5, 3, 2 and
1 days notice of the expected date of
estimated time of arrival at the intended placo of drydocking/underwater inspection/delivery. When the Vessel is at the place
of delivery and in every respect physically ready for delivery following divers’ inspection
(See Clause 17 herein) 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 upon completion of the Vessel’s current Cosco
Timecharter without any further laden legs free of cargo and charter free safely afloat at a
safe and accessible berth or anchorage at/in one major safe port always in the Sellers’ option
within mutually acceptable ranges Worldwide within IWL always excluding UN/US restricted
countries/areas and war/warlike countries/areas.
	 
	 	 	in the Sellers’ option
	 
	 	 	Expected time of delivery: between 1st August, 2005 and 30th September, 2005 in the
Sellers’ option.
	 
	 	 	Date of cancelling (see Clauses 5 c), 6 b) (iii) and 14): 30th September, 2005 in the
Buyers’ option.

 

 

	c)	 	If the Sellers anticipate that, notwithstanding the exercise of due diligence by them,
the Vessel will not be ready for delivery by the canceling 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 canceling date. Upon receipt of such notification the Buyers shall have
the option of either canceling 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 canceling
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 canceling date and shall be substituted
for the canceling date stipulated in line 61.
	 
	 	 	In the event it is likely that the Vessel will not be able to deliver within the agreed
cancelling date then the Sellers shall inform the Buyers in writing of this, either by
telex or by facsimile, whereupon the Buyers will be obliged to inform the Sellers within 4
(four) working days of receipt of such notification whether they wish to extend the
cancelling date shall be mutually agreed between both Buyers and Sellers. In the event of
cancellation then the deposit along with accrued interest shall be returned to the Buyers.
	 
	 	 	If this Agreement is maintained with the a new
cancelling date then unless otherwise
agreed 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 See
Clause 17 herein.
	 
	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 with 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.
	 
	 	 	(ii) 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, 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’ 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.
	 
	**	 	6 a) and 6 b) are alternatives; delete whichever is not applicable. In the absence of
deletions, alternative 6 a) to apply.
	 
	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
an ordor 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 as well as GMDSS equipment, computers and printers shall be included in the
sale without extra payment if they are the property cf the Sellers. All
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):
Specific Company software, Gas Bottles, Videotel.

The
Buyers shall take over the remaining bunkers and unbroached
and unused main engine and
generator lubricating oils (including greases) which have not passed through the Vessel’s system
in storage tanks and sealed drums and pay the Sellers’ last net purchased prices less any discounts
as evidenced by copies of the relevant vouchers and discount agreement. current net market price
(excluding barging expenses at the port and date of delivery of the Vessels.

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: Singapore, at the offices of DNB NOR Bank ASA as specified in lines 20 and
26 herein.

In exchange for payment of the Purchase Price along with any other payments called for
in accordance with this Agreement the Sellers shall furnish the Buyers with Bill(s) of Sale and
other delivery documentation as required by the Buyers for registration and legal/valid transfer
of the Vessel’s title to the Buyers and as is customary for sale and purchase transactions of
this type, a list of which shall be advised by the Buyers and incorporated in an addendum to this
Agreement within 30 (thirty) days of the date of this Agreement.
documents, namely:

	a)	 	Legal Bill of Sale in form recordable in (the country in which the
Buyers are to register the Vessel), warranting that the Vessel if free from all encumbrances,
mortages 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 of 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 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
existing manuals/instruction books/plans, main engine and
generators’ previous overhaul reports
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,
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 in the same condition as she
was at the time of inspection, fair normal
wear and tear excepted.

However, the Vessel shall be delivered with her present class fully maintained free of without
condition/recommendations*, notations and free of average damage affecting the Vessel’s class,
and with all her classification certificates and national/international trading certificates
according to the vessel’s present flag, as
well as all other certificates the Vessel had at the time
of inspection, clean, valid and unextended
without condition/recommendation* by Class or the
relevant authorities for a minimum period of 3 (three) months at the time of delivery. All continuous
surveys/survey cycles to be up to date and valid.

The Vessel shall be delivered in full accordance with the latest IMO, MARPOL, SOLAS, USCG
regulations, applicable for foreign flag vessels.

“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.

	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.

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 has been lodged, the Buyers
have the right to place two representatives on board the Vessel at their sole risk and expense
upon arrival at on or about

These representatives are on board for the purpose of familiarisation of the Vessel’s operational
characteristics and in the capacity of

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

The
Buyers or  Buyers’ representatives shall sign the Sellers’ standard 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 Singapore London
in accordance with the Arbitration Acts 1996
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.
	 
	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 onforcing 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 Arbitrators,
Inc. New York.
	 
	c)*	 	Any dispute arising out of this Agreement shall be referred to arbitration at
subject to the procedures applicable there.
	 
	 	 	The laws of 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.

Clause 17.

No drydocking prior to delivery. However, the Buyers have the right to arrange at their risk and
expense an inspection of the Vessel’s underwater parts utilising video camera by divers approved
by NK Class with the NK Class surveyor and Buyers’/Sellers’ representatives in attendance.

The Vessel is to be made available to be inspected by divers in clear and suitable waters as required
by the NK Class surveyor at the Sellers’ expense.

 

The Notice of Readiness for Delivery as referred to in Clauses 3 and 5 herein
shall be submitted to the Buyers after divers inspection is completed and the Vessel is
in all respects ready for delivery.

Should such divers inspection reveal any damage or structural defect to the Vessel’s
underwater parts which would impose a recommendation against the Vessel’s present
class, then:

In the event that Class imposes a recommendation that would require the Vessel to be
drydocked, then the Sellers shall arrange at their expense for the Vessel to be
drydocked and they shall repair the identified damage together with any other serious
damage found which was not identified by diver, and for which class would impose a
recommendation, and such damage(s) shall be repaired by the Sellers to Class
satisfaction to obtain a clean certificate of Class for the identified damages only
prior to delivery of the Vessel to the Buyers. The present Class shall at all times be
the sole arbitrator as to whether underwater damage, if any, imposes a recommendation
of Class.

Whilst the Vessel is in drydock the Buyers shall have the right to attend the Vessel
and to clean, paint and carry out other minor works on Vessel’s hull only, (it is
always understood that no other works on engines, machineries, deck etc., will be
permitted) in relation with the drydocking whilst the Vessel is in drydock at the
Buyers’ risk and expense provided such work does not interfere with the Sellers work
and that such Buyers’ work shall be liaised with the Sellers’ attending
superintendents.

In the event that the Buyers’ works are not completed prior to the time the Sellers
have completed their work, then the Sellers have the right to tender Notice of
Readiness whilst the Vessel is still in drydock provided, of course, the Vessel is in
all respects ready for delivery in accordance with the terms of this Agreement.

Should the Buyers’ work still not be completed and the Vessel is unable to leave
drydock because of this work within three (3) banking days after the Sellers have
tendered a Notice of Readiness the Buyers shall take delivery of the Vessel in drydock
and pay for the Vessel even though the Vessel remains in drydock. The cost for docking
and undocking shall be for the Sellers’ account but the cost for any extra time spent
in the drydock after the Notice of Readiness has been tendered by Sellers (and the
three (3) subsequent banking days have lapsed), shall be for the Buyers’ account.

If any damage is found which results in a Class recommendation for which repair is not
immediately required and may be deferred to the next scheduled drydocking or special
survey, the Sellers shall have the option to settle the cost of repairing such damage
based on the average of two quotes received from two reputable independent repair
yards near to the delivery port - one each to be nominated by the Sellers and the
Buyers. However it is always understood that the Sellers will only bear the direct
repair cost always excluding any docking and/or service charges.

Clause 18.

The Sellers shall confirm in writing that to the best of their knowledge the Vessel
is not Blacklisted by the Arab Boycott League, Damascus

Clause 19

All details of negotiations and of this sale shall be kept Strictly Private and Confidential

	 	 	 
	For the Sellers:

	 	For the Buyers:
	IKAN BELIAK SHIPPING PTE., LTD.

	 	COAL PRIDE SHIPCO LLC
	 
	 	 
	[ILLEGIBLE]

	 	[ILLEGIBLE]
	 
	 	 
	Attorney-in-fact
	 	 

 

 

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.

[ILLEGIBLE]

 

 

AMENDMENT NO.1 TO MEMORANDUM OF AGREEMENT

     This
AMENDMENT NO. 1, dated as of June 27th, 2005 (this “Amendment”), to the MEMORANDUM
OF AGREEMENT dated March 29, 2005 (the “MOA”) between IKAN BELIAK SHIPPING PTE., LTD, (“Sellers”)
and COAL PRIDE SHIPCO LLC (“Buyers”), is entered into and effectuated by Buyers and Sellers
(collectively, the “Parties”).

WHEREAS, the Parties hereto desire to amend the MOA to accurately reflect the agreement by the
Parties.;

NOW THEREFORE, in consideration of the mutual agreements and covenants contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the Parties agree that the MOA is hereby amended as follows:

	 	1.	 	Clause 18 of the MOA is hereby deleted in its entirety;
	 
	 	2.	 	Clause 19 of the MOA is hereby amended in it entirety to read as follows:
	 
	 	 	 	“19. This sale is to be kept strictly private and confidential between the Buyers,
Sellers and brokers involved and is not to be reported; provided, however, that in
the event that the Buyer or any of its affiliates are required to make disclosure
pursuant to applicable law, regulatory authority or the rules or requirements of a
stock exchange or stock market, such party shall be entitled to make the
appropriate disclosure.”
	 
	 	3.	 	Except as expressly modified hereby, all other terms and conditions of the MOA
remain in full force and effect.
	 
	 	4.	 	This Amendment may be executed in one or more counterparts, each of which
shall be deemed an original and all of which, together, shall constitute one
Amendment.

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, this Amendment has been executed as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	Sellers:	 	 
	 
	 	 	 	 	 	 
	 	 	IKAN BELIAK SHIPPING
PTE., LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	[ILLEGIBLE]	 	 
	 

	 	 	 	

	 	 
	 
	 	 	 	 	 	 
	 	 	Buyers:	 	 
	 
	 	 	 	 	 	 
	 	 	COAL PRIDE SHIPCO LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	[ILLEGIBLE]

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