Document:

Exhibit 10.10

 

ASSET PURCHASE AGREEMENT

 

	 	 
	 	Norwegian Shipbrokers’ Association’s Memo - 
	 

MEMORANDUM OF AGREEMENT

	randum of Agreement for sale and purchase of
	 	ships. Adopted by The Baltic and International
	 	Maritime Council (BIMCO) in 1956.
	 	Code-name
	 	SALEFORM 1993
	 	Revised 1966, 1983 and 1986/87

 

Dated: April _____, 2015

 

	
        Rong Yao International Shipping Limited of Room D, 10/F,
        Tower A, Billion Centre, 1 Wang Kwong Road, Kowloon Bay, Kowloon, Hong Kong 

        hereinafter called the “Sellers”, have agreed to
        sell, and 
	1
	 	 
	
        Sino-Global Shipping America, Ltd. (“Sino-Global”)
        of 1044 Northern Boulevard, Suite 305, Roslyn, New York 11576 or its nominee

        hereinafter called the “Buyers”, have agreed to
        buy
	2
	 	 
	Name: M.T. “Rong Zhou” (Hull No. CL0602)	3
	
        Classification Society/Class: Nippon Kaiji Kyokai (NK Class)

        Tanker, Oil Flash Point on and below 60 degree Celsius, and
        chemical type II and III, ESP, NS*, MNS*
	4
	Built: 2010By: Zhejiang Chenglu Shipbuilding Co., Ltd., Zhoushan	5
	Flag: Hong KongPlace of Registration: Hong Kong 	6
	Call Sign: IMO No.:  9526708GT/NT: 8,818 / 4,464	7
	Register Number:  ----- 	8
	 	 
	hereinafter called the Vessel, on the following terms and conditions:	9
	 	 
	Definitions	10
	 	 
	 	 
	“Banking days” are days on which banks are open in New York, Hong Kong and the People's Republic of China  	11
	 	 
	“In writing” or “written” means a letter handed over from the Sellers to the Buyers or vice versa, 	12
	a registered letter, telex, telefax, e-mail or other modern form of written communication. 	13
	 	 
	
        “Classification Society” or “Class”
        means the Society Nippon Kaiji Kyokai (NK Class)

        referred to in line 4.
	
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	1.           Purchase Price 	16
	United States Dollars Ten Million And Five Hundred Thousand Only (US $10,500,000).  The Purchase Price shall be subject to upward or downward adjustment, if any, pursuant to the terms of this Agreement. 	
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	2.First Installment Share Payment	19
	As an inducement and partial consideration for the Sellers entering into this Agreement and agreeing to

 effectuate the sale of the Vessel to the Buyers pursuant to this Agreement, substantially simultaneously with the

 execution of this Agreement, the Buyers shall irrevocably issue 1,200,000 shares of unregistered common stock

 of Sino-Global to the Sellers as partial payment of the Vessel’s Purchase Price (the “First Installment Share Payment”).

 The parties agree that such payment shall be valued at US $2,220,000, with each of the 1,200,000

 shares of Sino-Global’s unregistered common stock being valued at US $1.85. All of such 1,200,000 shares of Sino-Global’s unregistered common stock shall be issued to the Sellers by the Buyers pursuant to Regulation S of the Securities Act of 1933, as amended (the “Securities Act”). Sino-Global hereby represents and warranties that upon issuance of the 1,200,000 shares of Sino-Global’s unregistered common stock in the First Installment Share Payment to the Sellers, Sellers shall have the sole and exclusive ownership, title and rights to all such 1,200,000 shares of Sino-Global’s unregistered common stock including, but not limited to, the right to vote and/or sell all such 1,200,000 shares subject only to the 1,200,000 shares being registered for resale under the Securities Act or sold pursuant to and in accordance with an exemption from the registration requirements of the

 Securities Act, and the NASDAQ prohibition of the Sellers voting their 1,200,000 shares in proposals presented

 for approval to and by the shareholders of Sino-Global at the 2015 annual meeting of Sino-Global’s

 shareholders relating to items that involve directly and/or indirectly the Sellers.	
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	 As security for the correct fulfillment of this Agreement the Buyers shall pay a of 10%	36

 

    	 

    	 

    

 

	 (ten per cent) of the Purchase Price within banking days from the date of this	37
	Agreement. This  shall be place with 	38
	 	39
	
        and held by
        them in an interest bearing joint account for the Sellers and the Buyers, to be released in 

        accordance 
	40
	with joint written instructions of the Sellers and the Buyers. 	41
	Any fee charged for holding said  shall be borne equally by the Sellers and the 	42
	Buyers. 	43
	 	 
	 	 
	3.Payment	44
	 	 
	The said Purchase Price shall be paid by the Buyers in full free of bank charges to 	45
	 	 
	
        The said Purchase Price shall be paid by
        the Buyers as follows:

         
	46
	
        (a)         
        The 1,200,000 shares of Sino-Global unregistered common stock to be issued as the First Installment Share Payment will be substantially
        simultaneously with execution of this Agreement as provided in Clause 2 of this Agreement.

         

        (b)         
        After the Vessel is physically delivered to the Buyers, the Buyers shall lodge a second Installment (the “Second Installment”)
        in the sum of US $5,500,000, subject to availability of bank financing and any adjustments of the Purchase Price in accordance
        with this Agreement, in escrow to [Messrs. ], who shall hold the same as escrow agent for the parties. The parties agree that the
        Second Installment may be lodged by the Buyers by way of cash, issuance of Sino-Global’s unregistered common stock, subject
        to NASDAQ’s rules and regulations, or a combination of both, subject to agreement between the parties, and the Second Installment
        (either cash, unregistered common stock of Sino-Global or a combination of both) shall only be released to the Sellers after (i)
        satisfactory completion of closing conditions by the

 Sellers as stipulated in Clause 8 of this Agreement; (ii) the legal title
        of the Vessel has been transferred

 to the Buyers; and (iii) the Buyers have successfully obtained registration as the legal owner
        of the

 Vessel at the Hong Kong Shipping Register, and in accordance with the terms of the escrow agreement

 to be executed between
        the Sellers, the Buyers and the escrow agent, or otherwise in accordance with

 the joint written instructions of the Sellers and
        the Buyers.

         

         
	
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        (c)         
        The remaining balance of the Purchase Price (US $2,780,000) will be subject to adjustments in accordance with this Agreement (the
        “Final Installment”), and it shall be paid by the Buyers after all the adjustments of the Purchase Price have
        been made under Clause 22 of this Agreement by way of telegraphic transfer to the following bank account:

         

        [Sellers’ Bank account]

         

        The parties agree that the Final
        Installment may be paid by the Buyers by way of cash, issuance of unregistered common stock of Sino-Global or a combination of
        both, subject to agreement between the parties.

         

        The Buyers agree to use commercially
        reasonable efforts to register the unregistered shares of Sino-Global’s common stock issued in the name of the Sellers.

         

        In the event that this Agreement
        is terminated by either the Sellers or the Buyers under the terms provided in this contract or in accordance with the general law
        (i) the Sellers shall, within seven (7) banking days after the date of termination (x) pay US $2,220,000, representing the First
        Installment Share Payment paid by the Buyers pursuant to Clause 2 of this Agreement, to the Buyers and (y) return the Second Installment,
        if already lodged by the Buyers pursuant to Clause 3 of this Agreement, to the Buyers and (ii) on the date of any such termination,
        Sino-Global shall automatically and without any further action have a first priority security interest in and a priority lien on
        the Vessel to secure the payment of the US $2,220,000 owed to Sino-Global from the Sellers, and in connection therewith Sellers
        hereby expressly and irrevocably agree that Sino-Global is hereby expressly and irrevocably authorized to take any and all actions
        including, but not limited to, filing all necessary and/or required documents to create, enforce and provide notice of such priority
        security interest and lien on the Vessel, and Sellers further agree to take any and all action requested by Sino-Global in connection
        with the establishment, enforcement and providing notice of the security interest in and lien on the Vessel including, but not
        limited to, signing all requested documents and making all filings, and if Sellers do not take such actions within two (2) business
        days of such request, Sino-Global can take such action on behalf of the Sellers without having any liability to the Sellers (the
        rights of Sino-Global set forth in subparagraph (ii) of this paragraph shall be collectively referred to as “Buyer’s
        Security Rights”). For the avoidance of doubt, this clause shall survive termination of this Agreement.

        
	
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	4.           Inspections	90 
	 	 
	a) *	The Buyers have inspected and accepted the Vessel's classification records. The Buyers 	91
	 	have inspected the Vessel at/in on 	92
	 	and have accepted the Vessel following this inspection and the sale is outright and definite, 	93
	 	subject only to the terms and conditions of this Agreement. 	94
	 	 	 
	b) *	The Buyers shall have the right to inspect the Vessel and her classification records 	95
	 	before the date of physical delivery of the Vessel.	96
	 	 	 
	 	The Sellers shall provide for inspection of make the Vessel available for inspection at any of the ports in the Buyers’ option, within ten (10) banking days before the date of physical delivery of the Vessel.	
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	 	The Buyers shall undertake the inspection without undue delay to the Vessel. Should the 	99
	 	Buyers cause undue delay they shall compensate the Sellers for the losses thereby incurred. 	100
	 	The Buyers shall inspect the Vessel without opening up and without cost to the Sellers. 	101
	 	During the inspection, the Vessel's deck and engine log books shall be made available for 	102
	 	examination by the Buyers. If the Vessel is accepted after such inspection, the sale shall 	103
	 	become outright and definite, subject only to the terms and conditions of this Agreement, 	104
	 	provided the Sellers receive written notice of acceptance from the Buyers within seventy-two (72) hours 	105
	 	after completion of such inspection. 	106
	 	Should notice of acceptance of the Vessel's classification records and of the Vessel not be 	107
	 	received by the Sellers as aforesaid this Agreement shall be terminated, the Seller shall immediately pay US $2,220,000, representing the First Installment Share Payment paid by the Buyers pursuant to Clause 2 of this Agreement, to the Buyer, and the Buyer’s Security Rights shall become immediately effective.	
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	5.	Notices, time and place of delivery	111

 

	
        The Sellers shall keep the Buyers well
        informed of the Vessel’s itinerary and shall provide the Buyers with twenty (20), ten (10), five (5) and three (3) days’
        notice of the date the Sellers intend to tender Notice of Readiness and of the place of delivery nominated by the Buyers. When
        the Vessel is at the place of delivery nominated by the Buyers 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 Notice of Readiness shall
        be issued not less than three (3) banking days before

 the anticipated delivery date.

         
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	The Vessel shall be delivered and taken over under her own power charter free/free of cargo, free of stowaways, safely afloat at a safe port and accessible safe berth or safe  	120

                                  121

	anchorage at a location to be nominated by the Buyers	122
	 	 
	in the Sellers' option. 	123
	Notice of Readiness shall not be tendered on or before 15 May 2015 or at a later date in the Buyers’ option	124
	Expected time of delivery: 1	125
	 	 
	Date of Cancelling (see Clauses 5 c), 6 b)(iii) and 14): 1 July 2015 after 00:00 hours in Hong Kong or at a later date in the Buyers’ option (the “Cancelling Date”)	126

	 	 	 
	c)	If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, 	127
	 	the Vessel will not be ready for delivery by the Cancelling Date they may notify the Buyers in 	128
	 	writing stating the date when they anticipate that the Vessel will be ready for delivery and 	129
	 	proposing a new Cancelling Date.  Upon receipt of such notification the Buyers shall have the 	130
	 	option of either cancelling this Agreement in accordance with Clause 14 (Sellers’ default) within 	131
	 	seven (7) banking days of receipt of the notice or of accepting the new days as the new Cancelling 	132
	 	Date.  If the Buyers have not declared their option within seven (7) banking days of receipt of the 	133
	 	Sellers’ notification or if the Buyers accept the new date, the date proposed in the Sellers’ 	134
	 	notification shall be deemed to be the new Cancelling Date and shall be substituted for the 	135
	 	Cancelling Date stipulated in line 61.   	136
	 	 	
	 	If this Agreement is maintained with the new Cancelling Date all other terms and conditions 	137
	 	hereof including those contained in clauses 5a) and 5c) shall remain unaltered and in full  	138
	 	force and effect.  Cancellation, failure to cancel or acceptance of the new Cancelling Date shall be	139
	 	entirely without prejudice to any claim for damages the Buyers may have under Clause 14 (Sellers’ 	140
	 	default) for the Vessel not being ready by the original Cancelling Date.  	141

 

	d) 	Should the Vessel become an actual, constructive or compromised total loss before delivery,	142
	 	this Agreement shall immediately become null and void and the Sellers shall immediately pay US $2,220,000, representing the First 	
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	 	Installment Share Payment paid by the Buyers pursuant to Clause 2 of this Agreement, to the Buyers and Buyer’s Security Rights	144
	 	shall immediately become effective.	145
	 	 	 

    	 

    	 

    

 

	
         

        6. Drydocking/Diver Inspection
        

         
	146
	 	 
	a)**	The Sellers shall place the Vessel in drydock at the port of delivery for inspection by the 	147
	 	Classification Society of the Vessel's underwater parts below the deepest load line, the 	148
	 	extent of the inspection being in accordance with the Classification Society's rules. If the 	149
	 	rudder, propeller, bottom or other underwater parts below the deepest load line are found 	150
	 	broken, damaged or defective so as to affect the Vessel's class, such defects shall be made 	151
	 	good at the Sellers' expense to the satisfaction of the Classification Society without 	152
	 	condition/recommendation*. 	153
	 	 	 
	b)**	(i)           The Vessel is to be delivered without drydocking.  However,  The Buyers shall have the option right at their expense to arrange for an underwater inspection by a diver approved by the Classification	
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        Society prior to the physical delivery
        of the Vessel. The Sellers shall at their cost and expense

        make the Vessel available for such inspection.
        The extent of the inspection and the conditions under
	
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	 	which it is performed shall be to the satisfaction of the Classification Society.  If the 	158
	 	conditions at the place port of delivery are unsuitable for such inspection, the Sellers shall make  the 	159
	 	Vessel available at a suitable alternative place near to the delivery port.  Unless specifically approved by the Buyers, the Sellers may not tender	
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	 	Notice of Readiness prior to completion of the underwater inspection.   The Buyers’ representative(s)	162
	 	shall have the right to be present at the diver’s inspection. 	163
	 	 	 
	 	(ii)           If the rudder, propeller, bottom, or other underwater parts below the deepest load line are 	164
	 	found broken, damaged or defective so as to affect the Vessel’s class, then unless repairs can 	165
	 	be carried out afloat to the satisfaction of the Classification Society, the Sellers shall arrange for  	166
	 	the Vessel to be drydocked at their expense for inspection by the Classification Society of the 	167
	 	Vessel’s underwater parts below the deepest load line, the extent of the inspection being in 	168
	 	accordance with the Classification Society’s rules.  If the rudder, propeller, bottom or other  	169
	 	underwater parts below the deepest load line are found broken, damaged or defective so as to	170
	 	affect the Vessel’s class, such defects shall be made good by the Sellers at their cost and expenses	171
	 	to the satisfaction of the Classification Society without condition / recommendation*.  In such event 	172
	 	the Sellers are to pay also for the cost of the underwater inspection and the Classification Society’s	173
	 	attendance. 	174

 

    	 

    	 

    

 

	 	(iii)           If the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no suitable dry-docking 	175
	 	facilities are available at the port of delivery, the Sellers shall take the Vessel to a port where	176
	 	suitable drydocking facilities are available, whether within or outside the delivery range as per 	177
	 	Clause 5 b).  Once drydocking has taken place the Sellers shall deliver the Vessel at a port within	178
	 	the delivery range as per Clause 5 b) which shall, for the purpose of this Clause, become the new 	179
	 	port of delivery.  In such event the Cancelling Date provided for in Clause 5 b) shall be extended 	180
	 	by the additional time required for the drydocking and extra steaming, but limited to a maximum of 14 	181
	 	running days. 	182
	 	 	 
	c)	If the Vessel is drydocked pursuant to Clause 6 a) or 6 b) above 	183
	 	(i)              The Classification Society may require survey of the tailshaft system, the extent of the 	184
	 	survey being to the satisfaction of the Classification Surveyor.  If such survey is not required by the   	185
	 	Classification Society, the Buyers shall have the right to require the tailshaft to be drawn and 	186
	 	surveyed by the Classification Society, the extent of the survey being in accordance with the 	187
	 	Classification Society’s rules for tailshaft survey and consistent with the current stage of the Vessel’s	188
	 	survey cycle.  The Buyers shall declare whether they require the tailshaft to be drawn and surveyed	189
	 	not later than by the completion of the inspection by the Classification Society.  The drawing and  	190
	 	refitting of the tailshaft shall be arranged by the Sellers.  Should any parts of the tailshaft system be 	191
	 	condemned or found defective so as to effect the Vessel’s class, those parts shall be renewed or	192
	 	made good at the Sellers’ cost and expense to the satisfaction of the Classification Society without 	193
	 	condition/recommendation*.	194
	 	 	 
	 	(ii)             The costs and expenses relating to the survey of the tailshaft system shall be borne by the	195
	 	Buyers unless the Classification Society requires such survey to be carried out, in which case the	196
	 	Sellers shall pay these costs and expenses.  The Sellers shall also pay the costs and expenses if	197
	 	the Buyers require the survey and parts of the system  are condemned or found defective or broken	198
	 	so as to affect the Vessel’s class*.	199
	 	 	 
	 	(iii)            The costs and expenses in connection with putting the Vessel in and taking her out of 	200
	 	drydock, including the drydock dues and the Classification Society’s fees shall be paid by the Sellers	201
	 	if the Classification Society issues any condition/recommendation* as a result of the survey or if it 	202
	 	requires survey of the tailshaft system.  In all other cases the Buyers shall pay the aforesaid	203
	 	expenses, dues and fees.	204
	 	 	 
	 	(iv)            The Buyers’ representative(s) shall have the right to be present in the drydock, but without	205
	 	Interfering with the work or decisions of the Classification surveyor. 	206
	 	 	 

 

    	 

    	 

    

 

	 	(i)              The Buyers shall have the right to have the underwater parts of the Vessel cleaned and 	207
	 	painted at their risk and expense without interfering with the Sellers’ or the Classifications surveyor’s	208
	 	work, if any, and without affecting the Vessel’s timely delivery.  If, however, the Buyers’ work in 	209
	 	drydock is still in progress when the Sellers have completed the work which the Sellers are required	210
	 	to do, the additional docking time needed to complete the Buyers’ work shall be for the Buyers’ risk 	211
	 	and expense.  In the event that the Buyers’ work requires such additional time, the Sellers may upon	212
	 	completion of the Sellers’ work tender Notice of Readiness for delivery whilst the Vessel is still in	213
	 	drydock and the Buyers shall be obliged to take delivery in accordance with Clause 3, whether the 	214
	 	Vessel is in drydock or not and irrespective of Clause 5b)	215
	 	 	 
	*	Notes or memoranda, if any, in the surveyor’s report which are accepted by the Classification Society	216
	 	without condition/recommendation are not to be taken into account. 	217
	 	 	 
	 	 
	 	 
	7.           Spares/bunkers, etc.	218
	 	 
	The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board, ashore and on 	219
	shore at no extra cost.  All spare parts and spare equipment including spare tai-end shaft(s) and/or spare  	220
	propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or unused, whether	221
	on board or not shall become the Buyers’ property, but spares on order are to be excluded.  The Sellers are not	222
	required to replace spare parts including spare tail-end shaft(s) and spare propeller(s)/propeller blade(s) which	223
	are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the property	224
	of the Buyers.  The radio installation and navigational equipment shall be included in the sale without extra 	225
	payment if they are the property of the Sellers.  Broached/unbroached/unused stores and provisions shall be 	226
	included in the sale and be taken over by the Buyers without extra payment.	227
	 	 
	 	 
	The Sellers have the right to take ashore crockery, plates, cutlery, linen and other articles bearing the 	228
	Sellers' flag or name, provided they replace same with similar unmarked items. Library, forms, etc., 	229
	exclusively for use in the Sellers' vessel(s), shall be excluded without compensation. Captain's, 	230
	Officers' and Crew's personal belongings including the slop chest are to be excluded from the sale, 	231
	
        as well as the following additional items (including items on
        hire) which will be mutually agreed and incorporated

        in this Agreement in a form of an addendum.:
	
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	The Buyers shall take over the remaining bunkers and unused lubricating oils in storage tanks and 	234
	
        sealed drums and pay the Sellers for such
        remaining bunkers and unused lubricating oils at Sellers' net purchase price (excluding barging expenses) against supporting invoices/vouchers.
        If no supporting invoices/vouchers available, the price of the remaining bunkers and unused lubricating oils shall be determined
        by reference to the current net market rate (excluding barging expenses) at the port and date of delivery of the Vessel or, if
        unavailable, at the nearest bunkering port.

         
	
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	Payment under this Clause shall be made at the same time and place and in the same currency as 	240
	the Purchase Price. 	241
	 	 

    	 

    	 

    

 

	8.       Conditions to Closing and Closing Documentation	242
	 	 
	The place of closing is Hong Kong or other venue in the Buyers’ option.  The date and time of the Closing shall be mutually agreed between the Buyers and the Sellers and be documented in a closing memorandum.	
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        At Closing,
        the Sellers shall:

         

        (1)         deliver a legal opinion from their counsel confirming that they own the Vessel free from all encumbrances, mortgages and maritime
        liens or any other debts or claims whatsoever, and have the right and ability to transfer legal title to the Buyers free from all
        encumbrances, mortgages and maritime liens or any other debts or claims whatsoever.

         
	
         

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	(2)          furnish the following documents to the Buyers:	250
	 	 	 
	a) 	One (1) original Bill of Sale in a form recordable in Hong Kong (the country in which the Buyers are 	251
	 	to register the Vessel), warranting that the Vessel is free from all encumbrances, mortgages 	252
	 	and maritime liens or any other debts or claims whatsoever, duly notarized, attested and 	253
	 	legalized by the consul of such country or other competent authority; 	254
	 	 	 
	b) 	Written resolutions of the director(s) and shareholder(s) of the Sellers, duly notarially attested and 	255
	 	legalized or apostilled (as appropriate), approving the sale of the Vessel to the Buyers in accordance 	256
	 	with this Agreement, authorizing the issuance of a Power of Attorney to a specific person or persons  	257
	 	for the handling of the documentary closing and effecting physical delivery of the Vessel and 	258
	 	executing any and all documents in connection with the sale and delivery of the Vessel including,	259
	 	inter alia, the Bill of Sale, the Protocol of Delivery and Acceptance and all other documents relative	260
	 	to the sale of the Vessel;	261
	 	 	 
	c) 	Power of Attorney of the Sellers appointing one or more representatives to act on behalf of the 	262
	 	Sellers in the performance of this Agreement, authorizing the representative(s) to execute 	263
	 	the “Bill of Sale” and “Protocol of Delivery and Acceptance” and deal with all matters relating to  	264
	 	the effective transfer of the Vessel’s title and physical delivery of the Vessel to the Buyers, duly	265
	 	
        notarially attested and legalized or apostilled (as appropriate);

         

         
	
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	d)	Certificate or Transcript of Registry issued by the competent authorities of the flag state on the date 	267
	 	of physical delivery evidencing the Sellers’ ownership of the Vessel and that the Vessel is free from	268
	 	registered encumbrances and mortgages, to be faxed or e-mailed by such authority to the closing	269
	 	meeting with the original to be sent to the Buyers as soon as possible after physical delivery of the	270
	 	
        Vessel;

         

         
	
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	e) 	Declaration of Class or (depending on the Classification Society) a Class Maintenance Certificate	272
	 	issued within three (3) banking days prior to delivery confirming that the Vessel is in NK Class free of 	273
	 	condition/recommendation;	
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	f)	If required by the Buyers, 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	
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	 	registry does not as a matter of practice issue such documentation immediately, a written undertaking by	277
	 	the Sellers to effect deletion from the Vessel’s registry forthwith and provide a certificate or other official 	278
	 	evidence of deletion to the Buyers promptly and latest within four (4) weeks after the Purchase Price	279
	 	
        has been paid and the Vessel has been delivered;

         

        
	
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	g)	A copy of the Vessel’s Continuous Synopsis Record certifying the date on which the Vessel ceased 	281
	 	to be registered with the Vessel’s registry, or, in the event that the registry does not as a matter of 	282
	 	practice issue such certificate immediately, a written undertaking from the Sellers to provide the copy	283
	 	of this certificate promptly upon it being issued together with evidence of submissions by the Sellers	284
	 	of a duly executed Form 2 stating the date on which the Vessel shall ceased to be registered with 	285
	 	
        the Vessel’s registry;

         

         
	
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	h)	
        Commercial Invoice(s) for bunkers, lubricating and hydraulic
        oils and greases;

         

         
	
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	i)	A copy of the Sellers’ letter to their satellite communication provider cancelling the Vessel’s 	288
	 	
        Communications contract which is to be sent immediately after
        physical delivery of the Vessel;

         

         
	
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	j)	Any such additional documents as may reasonably be required by the competent authorities 	290
	 	for the purpose of registering the Vessel, provided the Buyers notify the Sellers of any such 	291
	 	
        documents as soon as possible after the date of this Agreement;

         

         
	
        292

         

         

	k)	The Sellers’ letter of undertaking confirming that to the best of their knowledge the Vessel is not 	293
	 	
        black listed by any nation or international organization;

         

         
	
        294

         

         

	l)	The Sellers’ letter of undertaking that to the best of their knowledge, the Vessel has not touched 	295
	 	
        Bottom since her last dry docking; and

         

         
	
        296

         

         

	m)	Evidence that the insurance of the Vessel was endorsed in the name of the Buyers.	297
	 	 
	At the time of closing the Buyers and Sellers shall sign and deliver to each other a Protocol of 	298
	Delivery and Acceptance confirming the date and time of delivery of the Vessel from the Sellers to the 	299
	Buyers. 	300
	 	 
	At the time of delivery the Sellers shall hand to the Buyers all of the Vessel’s classification certificate(s) as well 	301
	as all plans etc., which are on board the Vessel. Other certificates which are on board the Vessel shall also	302
	be handed over to the Buyers unless the Sellers are required to retain the same, in which case the 	303
	Buyers to have the right to take copies at the Buyers’ own cost. Other technical documentation which may 	304

 

    	 

    	 

    

 

	be in the Sellers' possession shall be promptly forwarded to the Buyers at the Buyers' expense, if they so 	305
	request. The Sellers may keep the Vessel's log books but the Buyers to have the right to take 	306
	
         

        copies of same. The certificates/documents mentioned above shall
        be clean and valid without

         

        condition/recommendation for a minimum period of twenty-four
        (24) months by Class or the relevant authorities

         

        from the date of physical delivery of the Vessel. 
        

         

        The Buyers shall deliver
        the following documents to the Sellers at the time of closing:

         

        1.Resolutions
        of the Board of Directors of the Buyers approving the purchase of the Vessel pursuant to the terms and conditions of this Agreement;
        ratifying the execution of this Agreement, appointing and authorising attorneys-in-fact to act on behalf of the Buyers in connection
        with the purchase and taking physical delivery of the Vessel, to issue unregistered common stock of Sino-Global to the Sellers,
        to execute the various documents (including the protocol of delivery and acceptance) in connection with the purchase and taking
        delivery of the Vessel. The Resolutions shall be duly notarised and legalised/apostilled.

         

        2.Power
        of Attorney issued pursuant to the Directors' Resolutions referred to in 1. above, duly executed by the Buyers appointing and authorising
        attorneys-in-fact to act on behalf of the Buyers in connection with the purchase and taking delivery of the Vessel, including without
        limitation, to attend documentary closing and to take physical delivery of the Vessel, to execute various documents (including
        the protocol of delivery and acceptance). The Power of Attorney shall be duly notarised and legalised/apostilled.

         

        For the avoidance of doubt, it is a condition
        for the Sellers to deliver all of the closing documents to the Buyers as set out in this Clause 8, failing which (i) the Buyers
        have the option to terminate this Agreement and require the Sellers to immediately pay to the Buyers US $2,220,000, representing
        the First Installment Share Payment paid by the Buyers pursuant to Clause 2 of this Agreement,

 and Buyer’s Security Rights
        shall immediately become effective, or (ii) require the Sellers to amend the closing documents

 as required by the Buyers.

         

        Closing Procedures: 

         
	
         

        307

         

        308

         

        309

         

        310

         

        311

        312

        313

        314

        315

         

        316

        317

        318

        319

        320

        321

        322

        323

        324

        325

        326

        327

         

        328

         

	
        The following steps will take place simultaneously at Closing:

         
	329
	
        i.            
        The Vessel is physically delivered to the Buyers from the Sellers;

        ii.           
        The Buyers’ lodgment of the Second Installment in escrow to [Messrs. ].
	
        330

        331

	  iii.           The parties’ execution of the Protocol of Delivery and Acceptance; 	332
	  iv.           The Sellers deliver the Sellers’ closing documents, and the Buyers deliver Buyers’ closing documents set out in Clause 8 above.	
        333

	 	 
	9.Encumbrances	334

	 	 
	The Sellers warrant that the Vessel, at the time of delivery, is free from all taxes, maritime claims, 	335

	arrests, detentions, charters, encumbrances, mortgages and maritime liens or any other debts and/or claims 	336
	Whatsoever, and is not subject to Port State or other administrative detentions. The Sellers hereby undertake to 	337
	indemnify the Buyers against all consequences of claims made against the Vessel which have been incurred 	338
	prior to the time of delivery.	339

 

    	 

    	 

    

 

	10.Taxes, etc.	340
	 	 
	Any taxes, fees and expenses in connection with the purchase and registration under the Buyers’ flag	341
	shall be for the Buyers’ account, whereas similar charges in connection with the closing of the Sellers’	342
	register shall be for the Sellers’ account.	343
	 	 
	 	 
	11.Condition on delivery	344
	 	 
	The Vessel with everything belonging to her shall be at the Sellers’ risk and expense until she is 	345
	physically delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be 	346
	delivered and taken over as she was at the time of inspection, fair wear and tear 	347
	excepted.  However, the Vessel shall be delivered free of cargo and free of stowaways with her Class 	348
	maintained without condition/recommendation*, free of average damage affecting the Vessel’s class, and with 	349
	her classification certificates and all national, international and trading certificates, as well as all other certificates 	350
	the Vessel had at the time of inspection, clean, valid and unextended for minimum twenty-four (24) months from 	351
	the time of physical delivery without condition/recommendation* by Class or the relevant authorities 	352
	 	 
	“inspection” in this Clause 11, shall mean the Buyers’ inspection according to Clause 4(a) or (b) (Inspection), if applicable.  If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.	
        353

        354

	 	 
	 	 
	* 	Notes and memoranda, if any, in the surveyor’s report which are accepted by the Classification Society	355
	 	without condition/recommendation are not to be taken into account.	356
	 	 
	 	 
	12.Name/markings	357
	 	 
	Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel markings. 	358
	 	 
	 	 
	13.Buyers’ default	359
	 	 
	Should the Second Installment and the Final Installment not be paid in accordance with Clause 3, the Sellers have the right to cancel this Agreement, in which case (i) the Sellers shall, within seven (7) banking days after the date of cancellation (x) pay US $2,220,000, representing the First Installment Share Payment paid by the Buyers pursuant to Clause 2 of this Agreement, to the Buyers and (y) return the Second Installment, if already lodged by the Buyers pursuant to Clauses 3 of this Agreement, to the Buyers and (ii) Buyer’s Security Rights shall immediately become effective.  For the avoidance of doubt, if the Sellers terminate this Agreement under the terms provided in this contract or in accordance with the general law, the Sellers shall only be entitled to the remedies as specifically stated in this Agreement, and the Sellers shall not be entitled to any common law right and/or contractual right of damages, including but not limited to the Sellers’ right to claim loss of bargain or damages against the Buyers.  	
           
 360

        361

        362

        363

        364

        365

        366

        367

        

 

    	 

    	 

    

 

	14.Sellers’ default	368
	 	 
	Should the Sellers fail to give Notice of Readiness in accordance with Clause 5 b) or fail to be	369
	ready to validly complete a legal transfer by the Cancelling Date stipulated in line 61 the Buyers shall have the 	370
	option of cancelling this Agreement or take delivery of the Vessel against a deduction of the Vessel’s Purchase Price (the amount of deduction to be mutually agreed between the Parties) provided always that the Sellers shall be granted a maximum	
        371

        372

        373

	of three (3) banking days after Notice of Readiness has been given to make arrangements for the 	374
	documentation set out in Clause 8. If after Notice of Readiness has been given but before the	375
	Buyers have taken delivery the Vessel ceases to be physically ready for delivery and is not made	376
	physically ready again in every respect by the Cancelling Date stipulated in line 61 and new Notice 	377
	Readiness given, the Buyers shall retain their option to cancel.  In the event that the Buyers elect to	378
	cancel this Agreement, Sellers shall immediately pay US $2,220,000, representing the First Installment Share Payment paid by the Buyers pursuant to Clause 2 of this Agreement, to the Buyers and Buyer’s Security Rights shall immediately become effective.	
        379

        380

        381

	Should the Sellers fail to give Notice of Readiness by the Cancelling Date stipulated in line 61 or fail to be	382
	ready to validly complete a legal transfer as aforesaid they shall make due compensation to	383
	Buyers for their loss and for all expenses together with interest if their failure is due to proven	384
	negligence and whether or not the Buyers cancel this Agreement.	385
	 	 
	 	 
	15.Buyers’ representatives	386
	 	 
	After this Agreement has been signed by both parties, the Buyers 	387
	have the right to place immediately up to six two representatives on board the Vessel at their sole risk and expense upon 	
        388

        389

	arrival at                                   on or about.	390
	These representatives are on board for the purpose of familiarization and in the capacity of 	391
	observers only, and they shall not interfere in any respect with the operation of the Vessel. The 	392
	Buyers and the Buyers' representatives shall sign the Sellers' P&I Club standard letter of indemnity prior to their 	393
	embarkation.  The Buyers’ representatives to have the right to communicate with their office at the Buyers’ cost	394
	and the Captain of the Vessel shall assist in this respect.	395

 

    	 

    	 

    

 

	
        16. Warranty
        of Quality 

         

        (a)         
        Guarantee of Material and Workmanship

        The Sellers, for a period of
        twelve (12) months following delivery to the Buyers of the Vessel (the “Guarantee Period”), guarantee the Vessel,
        her hull and machinery and all parts and equipment thereof that are manufactured or furnished or supplied by the Sellers including
        material, equipment (however excluding any parts for the Vessel which have been supplied by or on behalf of the Buyers) against
        all defects which are due to defective materials, and/or poor workmanship.

         

         

        (b)         
        Notice of Defects

        The Buyers shall notify the
        Sellers in writing, as promptly as possible, after discovery of any defect for which a claim is made under this Clause 16. The
        Buyers' written notice shall describe the nature and extent of the defect. The Sellers shall have no obligation under this guarantee
        for any defects discovered prior to the expiry date of the guarantee, unless notice of such defects, is received by the Sellers
        not later than thirty (30) days after such expiry date.

         

        (c)         
        Remedy of Defects

        The Sellers shall remedy at
        its expense any defects, against which the Vessel or any part of the equipment thereof is guaranteed under this Clause 16 by making
        all necessary repairs and/or replacement.

         

        However, if it is impractical
        to make the repair by the Sellers, and if forwarding by the Sellers of replacement parts, and materials cannot be accomplished
        without impairing or delaying the operation or working of the Vessel, then, in any such event, the Buyers shall cause the necessary
        repairs or replacements to be made elsewhere at the discretion of the Buyers provided that the Buyers shall first and in all events
        will, as soon as possible, obtain the Sellers' prior written consent by first notifying the Sellers in writing of the time, place,
        methods, manners and by whom such repairs will be made and, if the Vessel is not thereby delayed, or her operation or working is
        not thereby delayed, or her operation or working is not thereby impaired, the Sellers shall have the right to verify by their own
        representative(s) the nature and extent of the defects complained of. The Sellers shall, in such cases, promptly advise the Buyers
        in writing after such examination has been completed, of its acceptance or rejection of the defects as ones that are subject to
        the guarantee herein provided.

         

        In any circumstances as set
        out below, the Purchase Price shall be deducted in accordance with Clause 22 of the Agreement:

         

        (i)          
        If Sellers accept the defects as justifying remedy under this Clause 16; or

        (ii)         
        If the Sellers neither accept nor reject the defects as above provided, nor request arbitration within thirty (30) days after its
        receipt of the Buyers' notice of defects which in such event, the Sellers shall be deemed having accepted the defects as justifying
        remedy under this Clause 16.

         

        Any dispute shall be referred
        to arbitration in accordance with Clause 17 hereof.

         

         
	
        396

        

        397

        398

        399

        400

        401

        402

         

         

        403

        404

        405

        406

        407

        408

         

        409

        410

        411

        412

         

        413

        414

        415

        416

        417

        418

        419

        420

        421

        422

        423

        424

         

        425

        426

         

        

        

	 	 

 

    	 

    	 

    

 

	17.Arbitration	427
	 	 
	a) * 	This Agreement shall be governed by and construed in accordance with Hong Kong law and	428
	 	any dispute arising out of this Agreement shall be referred to arbitration in Hong Kong in	      
	 	accordance with the UNCITRAL Arbitration Rules in force when the Notice of Arbitration is submitted.  Unless the parties agree on a single Arbitrator, the arbitration shall consist of three persons New 	
        429

        430

	 	, one arbitrator being appointed by each	431
	 	party and the third by the two so chosen if necessary, their decision or that of any two of them, shall be final. On the receipt by one party of the nomination in writing of the other party’s arbitrator,	
        432

        433

	 	That party shall appoint their arbitrator within fourteen (14) days, failing which the 	434
	 	 arbitrator
appointed by the other party shall become the sole arbitrator and in such circumstances, the decision of the sole arbitrator shall
be final.  	
        435
436
	 	 
	b) *	This Agreement shall be governed by and construed in accordance with Title 9 of the	437
	 	United States Code and the Law of the State of New York and should any dispute arise out of	438
	 	This Agreement, the matter in dispute shall be referred to three persons at New York, one to	439
	 	Be appointed by each of the parties hereto, and the third by the two so chosen; their	440
	 	decision or that of any two of them shall be final, and for purpose of enforcing any award, this	441
	 	Agreement may be made a rule of the Court.	442
	 	The proceedings shall be conducted in accordance with the rules of the Society of Maritime	443
	 	Arbitrators, Inc. New York.	444
	 	 	 
	c)*	Any dispute arising out of this Agreement shall be referred to arbitration at	445
	 	                                                                                , subject to the procedures applicable there.	446
	 	The laws of                                            shall govern this Agreement	447
	*	16 a), 16 b) and 16 c) are alternatives; delete whichever is not applicable. In the absence of	448
	 	deletions, alternative 16 a) to apply.	449
	 	 	 
	 	 	 

 

    	 

    	 

    

 

	18.        Bunker / lubricating oils survey	450
	 	 
	Exact quantities of bunkers and lubricating oils to be measured and agreed after joint survey (the cost of joint survey shall be borne by the Buyers and Sellers equally) carried out by the Sellers’ and Buyers representatives three (3) banking days prior to delivery with agreed allowance for consumption up to physical delivery.	
        451

        452 

        453

	 	 
	 	 
	19.        Trials	454
	 	 
	
         Within ten
(10) banking days before the date of physical delivery of the Vessel, the Sellers shall arrange their staff(s) accompanied by
Buyers’ representative(s) and/or surveyor(s) and Class surveyors to board the Vessel to conduct an stationary & operational
trial on all her machineries and equipment to ensure her operating condition. Upon completed her operational trial the Vessel
to proceed to sea for propulsion-trial of maximum six (6) hours to confirm everything is in normal working condition. In the event
that the hull, machinery, parts or equipment of the Vessel are found broken, damaged or defective so as to affect her class, the
Buyers have the option of either requiring the Sellers to make all necessary repairs to the Vessel to ensure that her class would
not be affected, or accepting the Vessel against a deduction from the Purchase Price pursuant to Clause 22 of this Agreement.
Buyers’ representative(s) and/or surveyors(s) on board (whom accompanied by Sellers representative(s)/master) are allowed
to carry out physical inspection including ship machineries etc.

         
	
        455

456

457

458

459

460

461

462

         

	
         20. Class Surveys

         

        Sellers shall, at their own costs and expenses,
        carry out class and statutory surveys on or before 15 May 2015 so as to have class maintenance certificate and all other relevant
        class and statutory certificates issued. Sellers shall provide the Buyers with builder’s certificate and other document(s)
        issued by Class as reasonably required for flag registration purposes. For the avoidance of doubt, all the repairs and/or ratifications
        of the Vessel shall be agreed upon by the parties and such repairs/ratifications and all inspections conducted under this Clause
        shall not affect the Sellers' right to give Notice of Readiness under Clause 5(a).

        
	
        463

464

465

466

467

468
469
	 	 
	
        21. Conditions Precedent

         

        This Agreement is conditional upon and
        subject to the following:

         

        (a)         
        The Buyers are able to obtain necessary financing for the acquisition of the Vessel on or before 30 June 2015 on such terms as
        are satisfactory to the Buyers at the Buyers’ sole discretion;

         

        (b)         
        The Sellers have completed the class and statutory surveys of the Vessel as stipulated in clause 20 and the Class issued classification
        certificates and all national, international and trading certificates, as well as all other certificates for the Vessel which are
        clean, valid, and unextended for minimum of twenty-four (24) months from the time of delivery without condition/recommendation
        by Class or the relevant authorities;

         

        (c)         
        The Buyers have obtained all necessary approvals from the Board of Directors of Sino-Global, the government and/or regulatory authorities
        for the acquisition of the Vessel;

         

        (d)         
        The Buyers have completed all the inspections and trials as stipulated in Clauses 4, 6 and 19 of this Agreement and have accepted
        the Vessel; and

         

        (e)         
        The Buyers have obtained all necessary permits, license and consents to the acquisition and operation of the Vessel.

         
	 470

471

472

473

474

475

476

477

478

479

480

481

482

           483

         

 

    	 

    	 

    

 

	
        Should any of the above conditions is not
        been met, the Buyers have the option to cancel this Agreement and this Agreement shall become null and void and has no legal effect.
        In such event, the Sellers shall immediately pay US $2,220,000, representing the First Installment Share Payment paid by the Buyers
        pursuant to Clause 2 of this Agreement, to the Buyers and return the Second Installment, if already lodged by the Buyers pursuant
        to Clause 3 of this Agreement, to the Buyers and the Buyer’s Security Rights shall become immediately effective.

         
	484

485

486

487
	 22. Adjustment of the
        Purchase Price

         

        The Purchase Price of the Vessel shall
        be subject to adjustments as hereinafter set forth. It is hereby understood by both parties that any reduction of the Purchase
        Price is by way of liquidated damages and not by way of penalty.

         
	488

489

490
	
         Defects found during inspection

         

        (a)        
        If any defect was found during the Buyers’ inspection of the Vessel as stipulated in Clause 4 of this Agreement, the Buyers
        have the option of either not accepting the Vessel (in which case this Agreement shall be null and void, and the Sellers shall
        immediately pay US $2,220,000, representing the First Installment Share Payment paid by the Buyers pursuant to Clause 2 of this
        Agreement, to the Buyers and the Buyer’s Security Rights shall become immediately effective or accepting the Vessel against
        a deduction from the Purchase Price of the estimated direct cost (of labour and materials) of carrying out the repairs and/or replacements
        including forwarding charges to the Buyers’ satisfaction. The estimated direct cost of the repairs and/or replacements including
        forwarding charges shall be the average of quotes for the repair and/or replacement works obtained from two reputable independent
        shipyards in South Korea or Singapore, one to be obtained by each of the Parties within two (2) Banking Days from the date of the
        inspection, unless the Parties agree otherwise. Should either of the Parties fail to obtain such a quote within the stipulated
        time then the quote duly obtained by the other Party shall be the sole basis for the estimate of the direct repair and/or replacement
        costs. The Sellers may not tender Notice of Readiness prior to such estimate having been established.

        
	491

492

493

494

495

496

497

498

499

500

501

502

503

504

 

 

    	 

    	 

    

 

	
        Defects found during divers inspection

         

        (a)         
        If any defect was found during the Buyers’ divers inspection of the Vessel as stipulated in Clause 6 of this Agreement, and
        if the Classification Society do not require the defect(s) to be rectified before the next class drydocking survey, the Sellers
        shall be entitled to deliver the Vessel with these defect(s) against a deduction from the Purchase Price of the estimated direct
        cost (of labour and materials) of carrying out the repairs and/or replacements including forwarding charges to the satisfaction
        of the Buyers and the Classification Society. The estimated direct cost of the repairs and/or replacements including forwarding
        charges shall be the average of quotes for the repair and/or replacement works obtained from two reputable independent shipyards
        in South Korea or Singapore, one to be obtained by each of the Parties within two (2) Banking Days from the date of the divers
        inspection, unless the Parties agree otherwise. Should either of the Parties fail to obtain such a quote within the stipulated
        time then the quote duly obtained by the other Party shall be the sole basis for the estimate of the direct repair and/or replacement
        costs. The Sellers may not tender Notice of Readiness prior to such estimate having been established.

         

        Defects found during Trials

         

        (b)         
        If any defect was found during the Trial of the Vessel as stipulated in Clause 19 of this Agreement, the Buyers have the option
        of either requiring the Sellers to make all necessary repairs to the Vessel to ensure that her class would not be affected, or
        accepting the Vessel against a deduction from the Purchase Price of the estimated direct cost (of labour and materials) of carrying
        out the repairs and/or replacements including forwarding charges to the satisfaction of the Buyers and the Classification Society.
        The estimated direct cost of the repairs and/or replacements including forwarding charges shall be the average of quotes for the
        repair and/or replacement works obtained from two reputable independent shipyards in South Korea or Singapore, one to be obtained
        by each of the Parties within two (2) Banking Days from the date of Trial of the Vessel, unless the Parties agree otherwise. Should
        either of the Parties fail to obtain such a quote within the stipulated time then the quote duly obtained by the other Party shall
        be the sole basis for the estimate of the direct repair and/or replacement costs.

         

        Defects found during the Guarantee Period

         

        (c)         
If any defect was found during the Guarantee Period, subject to Clause 16 of the Agreement, the Purchase Price shall be deducted
from the estimated direct cost (of labour and materials) of carrying out the repairs and/or replacements including forwarding
charges to the satisfaction of the Buyers. The estimated direct cost of the repairs and/or replacements including forwarding charges
shall be the average of quotes for the repair and/or replacement works obtained from two reputable independent shipyards in South
Korea or Singapore, one to be obtained by each of the Parties within two (2) Banking Days from the date of Sellers’ receipt
of Notice of Defects from the Buyers as stipulated in Clause 16(b0 of this Agreement, unless the Parties agree otherwise. Should
either of the Parties fail to obtain such a quote within the stipulated time then the quote duly obtained by the other Party shall
be the sole basis for the estimate of the direct repair and/or replacement costs.

             

         
	505

506

507

508

509

510

511

512

513

514

515

516

517

518

519

520

521

522

523

524

525

526

527

528

529

530

531

532

533

534

535

536

537

 

 

    	 

    	 

    

 

	23. Costs	538
	 	 
	All costs at the port of delivery, before physical delivery, such as dues or expenses due or payable for inward clearance, customs clearance, port dues, harbour dues, fees, local tugs assistance, pilotages and the Sellers’ agent’s fees are for the account of the Sellers, as well as all expenses in connection with repatriation of all crew members.	539

540

541

	 	 
	 	 
	24. Notices 	542
	 	 
	All notices to be provided under this Agreement shall be in writing.	543
	 	 
	Contact details for recipients of notices are as follows:	544
	 	 
	 	 
	For the Buyers:	545
	c/o Sino-Global Shipping (HK) Limited	546
	20/F Hoi Kiu Commercial Building,	547
	158 Connaught Road, Central, Hong Kong	548
	Tel: (852) 37912082	549
	Tax: (852 37912081	550
	Email: elsie@sino-global.net	551
	Contact Person: Miss Elsie Yuen	552
	 	
	For the Sellers:	553
	 	 

	
        25. Entire Agreement 

         

        The written terms of this Agreement comprise
        the entire agreement between the Buyers and the Sellers in relation to the sale and purchase of the Vessel and supersede all previous
        agreements whether oral or written between the Parties in relation thereto. Notwithstanding the above, the Parties may amend any
        term of this Agreement by prior written agreement between the Parties and any such amendments shall be incorporated into this Agreement
        by way of an addendum.

        

        
	554

555

556

557

558

559

 

    	 

    	 

    

 

	
        26. Acquisition only of Vessel; No assumption
        of Liabilities

         

        Pursuant to this Agreement, the
Buyers are only acquiring the Vessel and are not acquiring any contracts of the Vessel and/or the Sellers, hiring any persons
who worked on or were employed by the Vessel or the Sellers and are not continuing to do any business with any customers of the
Vessel. In addition, the Buyers are not acquiring any existing indebtedness of the Vessel or the Sellers except as expressly set
forth in this Agreement.

        
	560

561

562

563

564

565

 

	
        27. Regulation S Representations of
        the Sellers

         

        The Sellers understand that the 1,200,000
        shares are being issued to and acquired by the Sellers from the Buyers in reliance on an exemption from the registration requirements
        of United States federal and state securities laws under Regulation S of the Securities Act and that the Buyers are relying upon
        the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Sellers set forth
        herein in order to determine the applicability of such exemptions and the suitability of the Sellers to acquire the 1,200,000 shares.
        In this regard, the Sellers represent, warrant and agree that:

         

        (1)  
        The Sellers are not a U.S. Person (as defined below) and are not an affiliates (as defined in Rule 501(b) under the Securities
        Act) of the Buyers and are not acquiring the 1,200,000 shares for the account or benefit of a U.S. Person. A “U.S. Person”
        means any one of the following:

        a.    
        any natural person resident in the United States of America;

        b.    
        any partnership or corporation organized or incorporated under the laws of the United States of America;

        c.    
        any estate of which any executor or administrator is a U.S. person;

        d.    
        any trust of which any trustee is a U.S. person;

        e.    
        any agency or branch of a foreign entity located in the United States of America;

        f.     
        any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit
        or account of a U.S. person;

        g.    
        any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated
        or (if an individual) resident in the United States of America; and

        h.    
        any partnership or corporation if:

                                                 
        i.    organized or incorporated under the laws of any foreign jurisdiction; and

                                                
        ii.    formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities
        Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) under the Securities
        Act) who are not natural persons, estates or trusts.

        (2)  
        At the time of the origination of contact concerning this Agreement and the date of the execution and delivery of this Agreement,
        the Sellers were outside of the United States.

        (3)  
        The Sellers will not, during the period commencing on the date of issuance of the 1,200,000 shares and ending on the first anniversary
        of such date, or such shorter period as may be permitted by Regulation S or other applicable securities law (the “Restricted
        Period”), offer, sell, pledge or otherwise transfer the 1,200,000 shares in the United States, or to a U.S. Person for the
        account or for the benefit of a U.S. Person, or otherwise in a manner that is not in compliance with Regulation S. The parties
        hereto agree that the selling of the 1,200,000 shares pursuant to an effective registration statement covering the resale of such
        1,200,000 shares is in compliance with Regulation S.

        (4)  
        The Sellers will, after expiration of the Restricted Period, offer, sell, pledge or otherwise transfer the 1,200,000 shares only
        pursuant to registration under the Securities Act or an available exemption therefrom and, in accordance with all applicable state
        and foreign securities laws.

        (5)  
        The Sellers were not in the United States, engaged in, and prior to the expiration of the Restricted Period will not engage in,
        any short selling of or any hedging transaction with respect to the 1,200,000 shares, including without limitation, any put, call
        or other option transaction, option writing or equity swap.

        (6)  
        Neither the Sellers nor or any person acting on their behalf has engaged, nor will engage, in any directed selling efforts to a
        U.S. Person with respect to the 1,200,000 shares and the Sellers and any person acting on their behalf have complied and will comply
        with the “offering restrictions” requirements of Regulation S under the Securities Act.

         

         
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	IN WITNESS WHEREOF the Sellers and the Buyers have signed and executed in two copies of this agreement 	610
	the day and year as above.	611

 

 

 

    	 

    	 

    

 

Amendment No. 1 (“Amendment
No. 1”) dated as of April 10, 2015 by and between Rong Yao International Shipping Limited (“Seller”)
and Sino-Global Shipping America, Ltd., (“Buyer”) to the Asset Purchase Agreement dated April 10, 2015 by and
between the Seller and the Buyer (the “Purchase Agreement”). This Amendment No. 1 amends and supplements the
Purchase Agreement, solely to the extent provided herein. The Buyer and Seller hereby expressly agree that notwithstanding anything
to the contrary provided in the Purchase Agreement or elsewhere, pursuant to NASDAQ Rule 5635(a) the Buyer will not issue to the
Seller shares of its common stock (or its common stock equivalents) equal to or in excess of twenty (20%) percent of (i) the voting
stock of the Company, and/or (ii) the shares of common stock of the Company, in both cases, issued and outstanding on the date
immediately prior to the date of the issuance of the 1.2 million shares to the Seller by the Buyer pursuant to the Purchase Agreement,
without the Buyer first obtaining approval by the Buyer’s shareholders in accordance with NASDAQ Rule 5635(e)(4). The parties
hereto execute this Amendment No. 1 as of April 10, 2015.8-K Exhibit 41 4-15-15

		

			Exhibit 4.1

		

		
			REGISTRATION RIGHTS AGREEMENT 
		

		
			BY AND AMONG 
		

		
			SANCHEZ PRODUCTION PARTNERS LP 
		

		
			AND 
		

		
			THE PURCHASERS NAMED ON SCHEDULE A HERETO 
		

		
			This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of April 15, 2015, by and among Sanchez Production Partners LP, a Delaware limited partnership (the “Partnership”), and each of the Persons set forth on Schedule A to this Agreement (each, a “Purchaser” and collectively, the “Purchasers”). 
		

		
			WHEREAS, this Agreement is made in connection with the closing of the issuance and sale of the Purchased Units pursuant to the Class A Preferred Unit Purchase Agreement, dated as of April 15, 2015 (the date of such closing, the “Closing Date”), by and among the Partnership and the Purchasers (the “Preferred Unit Purchase Agreement”); and 
		

		
			WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Purchasers pursuant to the Preferred Unit Purchase Agreement. 
		

		
			NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each party hereto, the parties hereby agree as follows: 
		

		
			ARTICLE I 
		

		
			DEFINITIONS 
		

		
			Section 1.01 Definitions. Capitalized terms used herein without definition shall have the meanings given to them in the Preferred Unit Purchase Agreement. The terms set forth below are used herein as so defined: 
		

		
			“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. For avoidance of doubt, for purposes of this Agreement, the Partnership, on the one hand, and the  Purchasers, on the other hand, shall not be considered Affiliates.  
		

		
			“Agreement” has the meaning specified therefor in the introductory paragraph of this Agreement. 
		

		
			“Amended Partnership Agreement” means the Agreement of Limited Partnership of the Partnership, as amended by Amendment No. 1 thereto.
		

		
			“Business Day” means any day other than a Saturday, Sunday, any federal legal holiday or day on which banking institutions in the State of New York or State of Texas are authorized or required by law or other governmental action to close.
		

		
			“Closing Date” has the meaning specified therefor in the recitals of this Agreement.
		

		
			“Commission” means the U.S. Securities and Exchange Commission. 
		

		
			“Common Unit Price” means the volume-weighted average closing price of the Common Units on the principal market on which the Common Units are then traded during the ten (10) Trading Days (as defined in the Amended Partnership Agreement) prior to the date of measurement.
		

		
			“Common Units” has the meaning specified therefor in Article I of the Amended Partnership Agreement.
		

		

		

		 

		

			 

		

 

		“Effectiveness Period” means the earlier of (i) the date as of which all Registrable Securities are sold by the Purchasers and (ii) one year following the Preferred Conversion Date.
		

		
			“Exchange Act” means the Securities and Exchange Act of 1934, as amended.
		

		
			“Existing Registration Rights Agreements” means (i) that certain Registration Rights Agreement dated as of August 9, 2013 between the Partnership and Sanchez Energy Partners I, LP and (ii) that certain Registration Rights Agreement dated as of March 31, 2015 between the Partnership and SEP Holdings III, LLC, in each case as amended, supplemented or modified from time to time.
		

		
			“General Partner” means Sanchez Production Partners GP LLC, a Delaware limited liability company. 
		

		
			 
		

		
			“Governmental Authority” means any federal, state, local or foreign government, or other governmental, regulatory or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body.
		

		
			 
		

		
			“Holder” means the record holder of any Registrable Securities. For the avoidance of doubt,  in accordance with Section 3.05 of this Agreement, for purposes of determining the availability of any rights and applicability of any obligations under this Agreement, including calculating the amount of Registrable Securities held by a Holder, a Holder’s Registrable Securities shall be aggregated together with all Registrable Securities held by other Holders who are Affiliates of such Holder.
		

		
			“In-Kind LD Amount” has the meaning specified therefor in Section 2.01(b) of this Agreement.
		

		
			 
		

		
			“Included Registrable Securities” has the meaning specified therefor in Section 2.02(a) of this Agreement. 
		

		
			“Launch” has the meaning specified therefor in Section 2.04 of this Agreement.
		

		
			“Law” means any statute, law, ordinance, regulation, rule, order, code, governmental restriction, decree, injunction or other requirement of law, or any judicial or administrative interpretation thereof,  of any Governmental Authority.
		

		
			“LD Period” has the meaning specified therefor in Section 2.01(b) of this Agreement.
		

		
			“LD Termination Date” has the meaning specified therefor in Section 2.01(b) of this Agreement. 
		

		
			“Liquidated Damages” has the meaning specified therefor in Section 2.01(b) of this Agreement. 
		

		
			“Liquidated Damages Multiplier” means the product of the Common Unit Price times the number of Common Units (which in the case of Common Units subject to issuance upon conversion of the Preferred Units shall be the number of Common Units issuable upon conversion of the Preferred Units at the date of determination) held by such Holder that may not be sold without restriction and without the need for current public information pursuant to any section of Rule 144 (or any successor or similar provision adopted by the Commission then in effect) under the Securities Act. 
		

		
			“Losses” has the meaning specified therefor in Section 2.09(a) of this Agreement. 
		

		
			“Managing Underwriter” means, with respect to any Underwritten Offering, the book-running lead manager of such Underwritten Offering. 
		

		
			“NYSE MKT” means the NYSE MKT LLC.
		

		
			“Opt-Out Notice” has the meaning specified therefor in Section 2.02(a) of this Agreement.
		

		
			“Parity Securities” has the meaning specified therefor in Section 2.02(b) of this Agreement. 
		

		
			“Partnership” has the meaning specified therefor in the introductory paragraph of this Agreement. 
		

		
			“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 
		

		

		

		 

		

			2

		

		

			 

		

 

		“Piggyback Threshold Amount” means  $500,000.
		

		
			“PIK Units” has the meaning specified therefor in Article I of the Amended Partnership Agreement.
		

		
			“Post-Launch Withdrawing Selling Holders” has the meaning specified therefor in Section 2.04 of this Agreement.
		

		
			“Preferred Conversion Date” has the meaning specified therefor in Article I of the Amended Partnership Agreement and means the earliest of such dates to occur.
		

		
			“Preferred Units” means Class A Preferred Units (including PIK Units) representing limited partner interests of the Partnership, as described in the Amended Partnership Agreement and issued pursuant to the Preferred Unit Purchase Agreement or the Amended Partnership Agreement, as the case may be.
		

		
			“Preferred Unit Purchase Agreement” has the meaning specified therefor in the recitals of this Agreement. 
		

		
			“Purchaser” and “Purchasers” have the meanings specified therefor in the introductory paragraph of this Agreement. 
		

		
			“Registrable Securities”  means (i) the Common Units issued or issuable upon the conversion of the Preferred Units (including PIK Units) acquired by the Purchasers pursuant to the Preferred Unit Purchase Agreement or, in the case of PIK Units, pursuant to the Amended Partnership Agreement, and (ii) any Common Units issued as Liquidated Damages pursuant to Section 2.01(b) of this Agreement, and includes any type of interest issued to the Holder as a result of Section 3.04 of this Agreement.  
		

		
			“Registrable Securities Amount” means the calculation based on the product of the Common Unit Price times the number of Registrable Securities.
		

		
			“Registration Expenses” has the meaning specified therefor in Section 2.08(b) of this Agreement. 
		

		
			 
		

		
			“Securities Act” means the Securities Act of 1933, as amended.
		

		
			 
		

		
			“Selling Expenses” has the meaning specified therefor in Section 2.08(b) of this Agreement. 
		

		
			“Selling Holder” means a Holder who is selling Registrable Securities pursuant to a registration statement. 
		

		
			“Selling Holder Indemnified Persons” has the meaning specified therefor in Section 2.09(a) of this Agreement.
		

		
			“Shelf Registration Statement” has the meaning specified therefor in Section 2.01(a) of this Agreement.
		

		
			“Target Effective Date” has the meaning specified therefor in Section 2.01(a) of this Agreement.
		

		
			“Underwritten Offering” means an offering (including an offering pursuant to a Shelf Registration Statement) in which Common Units are sold to one or more underwriters on a firm commitment basis for reoffering to the public or an offering that is a “bought deal” with one or more investment banks.
		

		
			“Underwritten Offering Notice” has the meaning specified therefor in Section 2.04 of this Agreement.
		

		
			Section 1.02 Registrable Securities. Any Registrable Security will cease to be a Registrable Security (a) when a registration statement covering such Registrable Security becomes or has been declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective registration statement; (b) when such Registrable Security has been sold or disposed of (excluding transfers or assignments by a Holder to an Affiliate) pursuant to Rule 144 (or any successor or similar provision adopted by the Commission then in effect) under the Securities Act under circumstances in which all of the applicable conditions of such Rule (then in effect) are met; (c) when such Registrable Security is held by the Partnership or one of its subsidiaries or Affiliates; provided, however, that none of the Purchasers or their Affiliates shall be considered an Affiliate of the Partnership; or (d) when such Registrable Security has been sold or disposed of in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of such securities pursuant to Section 2.11 hereof.
		

		

		

		 

		

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		ARTICLE II 
		

		
			REGISTRATION RIGHTS 
		

		
			Section 2.01 Registration.  
		

		
			(a) Effectiveness Deadline.  Promptly following the date of this Agreement, but in no event later than 120 calendar days following the date of this Agreement, the Partnership shall prepare and file a registration statement under the Securities Act to permit the public resale of all Registrable Securities to be issued upon conversion of the Preferred Units (including PIK Units reasonably expected to be issued by the Partnership to the Holders of Registrable Securities)  pursuant to the provisions of the Amended Partnership Agreement from time to time as permitted by Rule 415 (or any successor or similar provision adopted by the Commission then in effect) under the Securities Act, on the terms and conditions specified in  this Section 2.01 (a “Shelf Registration Statement”). A  Shelf Registration Statement filed pursuant to this Section 2.01 shall be on such registration form of the Commission as is permissible under the Securities Act. The Partnership shall use commercially reasonable efforts to cause the Shelf Registration Statement filed pursuant to this Section 2.01(a) to become or be declared effective as soon as practicable thereafter, but in no event later than 180 calendar days after the initial filing date of such Shelf Registration Statement (the “Target Effective Date”).  The Shelf Registration Statement shall provide for the resale pursuant to any method or combination of methods legally available to, and requested by, the Holders of Registrable Securities covered by such Shelf Registration Statement, including by way of an Underwritten Offering. During the Effectiveness Period, the Partnership shall use commercially reasonable efforts to cause such Shelf Registration Statement filed pursuant to this Section 2.01(a) to remain effective, and to be supplemented and amended to the extent necessary to ensure that such Shelf Registration Statement is available or, if not available, that another  registration statement is available for the resale of the Registrable Securities until all Registrable Securities have ceased to be Registrable Securities.  
		

		
			When effective, a Shelf Registration Statement (including the documents incorporated therein by reference) will comply as to form in all material respects with all applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained in such Shelf Registration Statement, in the light of the circumstances under which a statement is made). 
		

		
			 (b) Failure to Go Effective. If a Shelf Registration Statement required by Section 2.01(a) is not declared effective by the Target Effective Date, then each Holder shall be entitled to a payment (with respect to the Registrable Securities of each such Holder), as liquidated damages and not as a penalty, of 0.25% of the Liquidated Damages Multiplier per 30-day period, that shall accrue daily, for the first 60 days following such Target Effective Date, increasing by an additional 0.25% of the Liquidated Damages Multiplier per 30-day period, that shall accrue daily, for each subsequent 60 days (i.e., 0.5% for 61-120 days, 0.75% for 121-180 days and 1.0% thereafter), up to a maximum of 1.00% of the Liquidated Damages Multiplier per 30-day period (the “Liquidated Damages”). The Liquidated Damages payable pursuant to the immediately preceding sentence shall be payable within ten (10) Business Days after the end of each such 30-day period. Any Liquidated Damages shall be paid to each Holder in immediately available funds;  provided, however,  that if the Partnership certifies that it is unable to pay Liquidated Damages in cash because such payment would result in a breach under a credit facility or other debt instrument filed as an exhibit to the Partnership’s periodic reports filed with the Commission, then the Partnership may pay such Liquidated Damages using as much cash as permitted without breaching any such credit facility or other debt instrument and shall pay the balance of such Liquidated Damages (the “In-Kind LD Amount”) in kind in the form of the issuance of additional Common Units. Upon any issuance of Common Units as Liquidated Damages, the Partnership shall promptly (i) prepare and file an amendment to such Shelf Registration Statement prior to its effectiveness adding such Common Units to such Shelf Registration Statement as additional Registrable Securities and (ii) prepare and file a supplemental listing application with the NYSE MKT (or such other market on which the Registrable Securities are then listed and traded) to list such additional Common Units. The determination of the number of Common Units to be issued as Liquidated Damages shall be equal to the In-Kind LD Amount divided by the volume weighted average closing price of the Common Units (as reported on the NYSE MKT or the principal securities market on which the Common Units are then traded) for the consecutive ten (10) trading day period ending on the close of trading on the trading day immediately preceding the date on which the Liquidated Damages payment is due, less a discount to such average closing price of 2.00%. The accrual of Liquidated Damages to a Holder shall cease (a “LD Termination Date,” and, each such period beginning on a Target Effective Date and ending on a LD Termination Date being, a “LD Period”) at the earlier of (i) such Shelf Registration Statement 
		

		 

		

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		becoming effective,  (ii) when such Holder no longer holds Registrable Securities and (iii) one year following the earlier to occur of the Partnership Optional Conversion Date (as defined in the Amended Partnership Agreement) or the Mandatory Conversion Date (as defined in the Amended Partnership Agreement). Any amount of Liquidated Damages shall be prorated for any period of less than 30 calendar days accruing during a LD Period. If the Partnership is unable to cause a Shelf Registration Statement to go effective by the Target Effective Date as a result of an acquisition, merger, reorganization, disposition or other similar transaction, then the Partnership may request a waiver of the Liquidated Damages, and each Holder may individually grant or withhold its consent to such request in its discretion.  For the avoidance of doubt, nothing in this Section 2.01(b) shall relieve the Partnership from its obligations under Section 2.01(a). 
		

		
			Section 2.02 Piggyback Rights.  
		

		
			(a) Participation.  If the Partnership proposes to file during the Effectiveness Period (i) a shelf registration statement other than a Shelf Registration Statement contemplated by Section 2.01(a), (ii) a prospectus supplement to an effective shelf registration statement, other than a Shelf Registration Statement contemplated by Section 2.01(a) and Holders may be included in such Underwritten Offering without the filing of a post-effective amendment thereto, or (iii) a registration statement, other than a shelf registration statement, in each case, for the sale of Common Units in an Underwritten Offering for its own account or that of another Person, or both, then as soon as practicable following the selection of the Managing Underwriter for such Underwritten Offering, the Partnership shall give notice (including, but not limited to, notification by electronic mail) of such Underwritten Offering to each Holder (together with its Affiliates) holding at least the Piggyback Threshold Amount of the then-outstanding Registrable Securities (calculated based on the Common Unit Price) and such notice shall offer such Holders the opportunity to include in such Underwritten Offering such number of Registrable Securities (the “Included Registrable Securities”) as each such Holder may request in writing; provided, however, that (A) the Partnership shall not be required to provide such opportunity to any such Holder that does not offer a minimum of the Piggyback Threshold Amount of Registrable Securities (based on the Common Unit Price),  and (B) if the Partnership has been advised by the Managing Underwriter that the inclusion of Registrable Securities for sale for the benefit of the Holders will have an adverse effect on the amount, price, timing or distribution of the Common Units in the Underwritten Offering, then (i) if no Registrable Securities can be included in the Underwritten Offering in the opinion of the Managing Underwriter, the Partnership shall not be required to offer such opportunity to the Holders or (ii) if any Registrable Securities can be included in the Underwritten Offering in the opinion of the Managing Underwriter, then the amount of Registrable Securities to be offered for the accounts of Holders shall be determined based on the provisions of Section 2.02(b). Any notice required to be provided pursuant to this Section 2.02(a) to Holders shall be provided on a Business Day and receipt of such notice shall be confirmed by the Holder. Each such Holder shall then have two (2) Business Days (or one (1) Business Day in connection with any overnight or bought Underwritten Offering) after notice has been delivered to request in writing the inclusion of Registrable Securities in the Underwritten Offering. If no written request for inclusion from a Holder is received within the specified time, each such Holder shall have no further right to participate in such Underwritten Offering. If, at any time after giving written notice of its intention to undertake an Underwritten Offering and prior to the closing of such Underwritten Offering, the Partnership shall determine for any reason not to undertake or to delay such Underwritten Offering, the Partnership may, at its election, give written notice of such determination to the Selling Holders and, (x) in the case of a determination not to undertake such Underwritten Offering, shall be relieved of its obligation to sell any Included Registrable Securities in connection with such terminated Underwritten Offering, and (y) in the case of a determination to delay such Underwritten Offering, shall be permitted to delay offering any Included Registrable Securities as part of such Underwritten Offering for the same period as the delay in the Underwritten Offering. Any Selling Holder shall have the right to withdraw such Selling Holder’s request for inclusion of such Selling Holder’s Registrable Securities in such Underwritten Offering by giving written notice to the Partnership of such withdrawal at or prior to the time of pricing of such Underwritten Offering. Any Holder may deliver written notice (an “Opt-Out Notice”) to the Partnership requesting that such Holder not receive notice from the Partnership of any proposed Underwritten Offering; provided, however, that such Holder may later revoke any such Opt-Out Notice in writing. Following receipt of an Opt-Out Notice from a Holder (unless subsequently revoked), the Partnership shall not be required to deliver any notice to such Holder pursuant to this Section 2.02(a) and such Holder shall no longer be entitled to participate in Underwritten Offerings by the Partnership pursuant to this Section 2.02(a).   Notwithstanding anything in this Agreement to the contrary, Holders under this Agreement shall not be entitled to participate in a demand registration or a “shelf takedown” with respect to the Existing Registration Rights Agreements in connection with registrations or offerings by “Holders” under either of the Existing Registration 
		

		 

		

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		Rights Agreements or the registration statements, prospectuses and prospectus supplements filed in connection therewith.
		

		
			(b) Priority.  Other than situations outlined in Section 2.01 of this Agreement, if the Managing Underwriter of any proposed Underwritten Offering of Common Units included in an Underwritten Offering involving Included Registrable Securities advises the Partnership, or the Partnership reasonably determines, that the total amount of Common Units that the Selling Holders and any other Persons intend to include in such offering exceeds the number that can be sold in such offering without being likely to have an  adverse effect on the amount, price, timing or distribution of the Common Units offered or the market for the Common Units, then the Common Units to be included in such Underwritten Offering shall include the number of Registrable Securities that such Managing Underwriter advises the Partnership, or the Partnership reasonably determines, can be sold without having such adverse effect, with such number to be allocated (i) first, to the Partnership or other party requesting such registration, including “Holders” under either of the Existing Registration Rights Agreements, (ii) second, to the “Holders” under the Existing Registration Rights Agreements, (iii) third, pro rata among the Selling Holders who have requested participation in such Underwritten Offering, based, for each Selling Holder, on the percentage derived by dividing (x) the number of Registrable Securities proposed to be sold by such Selling Holder by (y) the aggregate number of Registrable Securities proposed to be sold by all Selling Holders, and (iii) fourth, to any other holder of securities of the Partnership having rights of registration that are neither expressly senior nor subordinated to the Holders in respect of the Registrable Securities (the “Parity Securities”), allocated among such holders in such manner as they may agree.  
		

		
			(c) Termination of Piggyback Registration Rights. Each Holder’s rights under Section 2.02 shall terminate upon such Holder (together with its Affiliates) ceasing to hold at least the Piggyback Threshold Amount of Registrable Securities (calculated based on the Common Unit Price). 
		

		
			 
		

		
			Section 2.03 Delay Rights.  
		

		
			Notwithstanding anything to the contrary contained herein, the Partnership may, upon written notice to any Selling Holder whose Registrable Securities are included in a Shelf Registration Statement or other registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any prospectus which is a part of such Shelf Registration Statement or other registration statement (in which event the Selling Holder shall discontinue sales of the Registrable Securities pursuant to such Shelf Registration Statement or other registration statement contemplated by this Agreement but may settle any previously made sales of Registrable Securities) if (i) the Partnership is pursuing an acquisition, merger, reorganization, disposition or other similar transaction and the Partnership determines in good faith that the Partnership’s ability to pursue or consummate such a transaction would be materially adversely affected by any required disclosure of such transaction in such Shelf Registration Statement or other registration statement or (ii) the Partnership has experienced some other material non-public event the disclosure of which at such time, in the good faith judgment of the Partnership, would materially adversely affect the Partnership; provided, however, that in no event shall the Selling Holders be suspended from selling Registrable Securities pursuant to such Shelf Registration Statement or other registration statement for a period that exceeds an aggregate of 60 calendar days in any 180-calendar day period or 105 calendar days in any 365-calendar day period, in each case, exclusive of days covered by any lock-up agreement executed by a Selling Holder in connection with any Underwritten Offering. Upon disclosure of such information or the termination of the condition described above, the Partnership shall provide prompt notice to the Selling Holders whose Registrable Securities are included in such Shelf Registration Statement and shall promptly terminate any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated in this Agreement. 
		

		
			If (i) the Selling Holders shall be prohibited from selling their Registrable Securities under a Shelf Registration Statement or other registration statement contemplated by this Agreement as a result of a suspension pursuant to the immediately preceding paragraph in excess of the periods permitted therein or (ii) a Shelf Registration Statement or other registration statement contemplated by this Agreement is filed and declared effective but, during the Effectiveness Period, shall thereafter cease to be effective or fail to be usable for its intended purpose without being succeeded within 20 Business Days by a post-effective amendment thereto, a supplement to the prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or l5(d) of the Exchange Act, then, until the suspension is lifted or a post-effective amendment, supplement or report is filed with the Commission, but not including any day on which a suspension is lifted or such amendment, supplement or report is filed and 
		

		 

		

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		declared effective, if applicable, the Partnership shall pay the Selling Holders an amount equal to the Liquidated Damages, following the earlier of (x) the date on which the suspension period exceeded the permitted period and (y) the twenty-first (21st) Business Day after such Shelf Registration Statement or other registration statement contemplated by this Agreement ceased to be effective or failed to be useable for its intended purposes, as liquidated damages and not as a penalty (for purposes of calculating Liquidated Damages, the date in (x) or (y) above shall be deemed the “90th day,” as used in the definition of Liquidated Damages). For purposes of this paragraph, a suspension shall be deemed lifted with respect to a Selling Holder on the date that notice that the suspension has been terminated is delivered to such Selling Holder. Liquidated Damages shall cease to accrue pursuant to this paragraph upon the earlier of (i) a suspension being deemed lifted and (ii) when such Selling Holder no longer holds Registrable Securities included in such Shelf Registration Statement.  
		

		
			Section 2.04 Underwritten Offerings.  
		

		
			(a) General Procedures. In the event that one or more Holders elects to include other than pursuant to Section 2.02 of this Agreement, at least an aggregate of $4,000,000 of Registrable Securities (calculated based on the Registrable Securities Amount) under a Shelf Registration Statement pursuant to an Underwritten Offering, the Partnership shall, upon request by such Holders (such request, an “Underwritten Offering Notice”), retain underwriters in order to permit such Holders to effect such sale through an Underwritten Offering;  provided, however, that the Holders shall have the option and right, to require the Partnership to effect not more than two  (2) Underwritten Offerings, pursuant to and subject to the conditions of this Section 2.04 of this Agreement.  Upon delivery of such Underwritten Offering Notice to the Partnership, the Partnership shall as soon as practicable (but in no event later than one (1) calendar day following the date of delivery of the Underwritten Offering Notice to the Partnership) deliver notice of such Underwritten Offering Notice to all other Holders who shall then have two (2) calendar days from the date that such notice is given to them to notify the Partnership in writing of the number of Registrable Securities held by such Holder that they want to be included in such Underwritten Offering.  For the avoidance of doubt, any Holders notified about an Underwritten Offering by the Partnership after the Partnership has received the corresponding Underwritten Offering Notice may participate in such Underwritten Offering, but shall not count toward the $4,000,000 of Registrable Securities necessary to request an Underwritten Offering pursuant to an Underwritten Offering Notice. In connection with any Underwritten Offering under this Agreement, the Holders of a majority of the Registrable Securities being disposed of pursuant to the Underwritten Offering shall be entitled to select the Managing Underwriter or Underwriters for such Underwritten Offering, subject to the reasonable consent of the Partnership. In connection with an Underwritten Offering contemplated by this Agreement in which a Selling Holder participates, each Selling Holder and the Partnership shall be obligated to enter into an underwriting agreement that contains such representations, covenants, indemnities and other rights and obligations as are customary in underwriting agreements for firm commitment offerings of securities. No Selling Holder may participate in such Underwritten Offering unless such Selling Holder agrees to sell its Registrable Securities on the basis provided in such underwriting agreement and completes and executes all questionnaires, powers of attorney, indemnities and other documents reasonably required under the terms of such underwriting agreement. Each Selling Holder may, at its option, require that any or all of the representations and warranties by, and the other agreements on the part of, the Partnership to and for the benefit of such underwriters also be made to and for such Selling Holder’s benefit and that any or all of the conditions precedent to the obligations of such underwriters under such underwriting agreement also be conditions precedent to its obligations. No Selling Holder shall be required to make any representations or warranties to or agreements with the Partnership or the underwriters other than representations, warranties or agreements regarding such Selling Holder, its authority to enter into such underwriting agreement and to sell, and its ownership of, the securities whose offer and resale will be registered, on its behalf, its intended method of distribution and any other representation required by Law. If any Selling Holder disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw therefrom by notice to the Partnership and the Managing Underwriter; provided, however, that any such withdrawal must be made no later than the time of pricing of such Underwritten Offering. If all Selling Holders withdraw from an Underwritten Offering prior to the  pricing of such Underwritten Offering, the events will not be considered an Underwritten Offering and will not decrease the number of available Underwritten Offerings the Selling Holders have the right and option to request under this Section 2.04.    No such withdrawal or abandonment shall affect the Partnership’s obligation to pay Registration Expenses;  provided, however,  that if (i) certain Selling Holders withdraw from an Underwritten Offering after the public announcement at launch (the “Launch”) of such Underwritten Offering (such Selling Holders, the “Post-Launch Withdrawing Selling Holders”), and (ii) all Selling Holders withdraw from such Underwritten Offering prior to pricing, then the Post-Launch Withdrawing Selling Holders shall pay for all 
		

		 

		

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		reasonable Registration Expenses incurred by the Partnership during the period from the Launch of such Underwritten Offering until the time all Selling Holders withdraw from such Underwritten Offering.  
		

		
			 
		

		
			Section 2.05 Sale Procedures.  
		

		
			In connection with its obligations under this Article II, the Partnership will, as expeditiously as possible: 
		

		
			(a) use commercially reasonable efforts to prepare and file with the Commission such amendments and supplements to a Shelf Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Shelf Registration Statement effective for the Effectiveness Period and as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Shelf Registration Statement;  
		

		
			(b) if a prospectus supplement will be used in connection with the marketing of an Underwritten Offering from a Shelf Registration Statement and the Managing Underwriter at any time shall notify the Partnership in writing that, in the sole judgment of such Managing Underwriter, inclusion of detailed information to be used in such prospectus supplement is of material importance to the success of the Underwritten Offering of such Registrable Securities, the Partnership shall use commercially reasonable efforts to include such information in such prospectus supplement; 
		

		
			(c) furnish to each Selling Holder (i) as far in advance as reasonably practicable before filing a Shelf Registration Statement or any other registration statement contemplated by this Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete drafts of all such documents proposed to be filed (including exhibits and each document incorporated by reference therein to the extent then required by the rules and regulations of the Commission), and provide each such Selling Holder the opportunity to object to any information pertaining to such Selling Holder and its plan of distribution that is contained therein and make the corrections reasonably requested by such Selling Holder with respect to such information prior to filing a Shelf Registration Statement or such other registration statement or supplement or amendment thereto, and (ii) such number of copies of such Shelf Registration Statement or such other registration statement and the prospectus included therein and any supplements and amendments thereto as such Selling Holder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities covered by such Shelf Registration Statement or other registration statement; 
		

		
			(d) if applicable, use commercially reasonable efforts to register or qualify the Registrable Securities covered by a Shelf Registration Statement or any other registration statement contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall reasonably request; provided, however, that the Partnership will not be required to qualify generally to transact business in any jurisdiction where it is not then required to so qualify or to take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject; 
		

		
			(e) promptly notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered by any of them under the Securities Act, of (i) the filing of a Shelf Registration Statement or any other registration statement contemplated by this Agreement or any prospectus or prospectus supplement to be used in connection therewith, or any amendment or supplement thereto, and, with respect to such Shelf Registration Statement or any other registration statement or any post-effective amendment thereto, when the same has become effective; and (ii) the receipt of any written comments from the Commission with respect to any filing referred to in clause (i) and any written request by the Commission for amendments or supplements to such Shelf Registration Statement or any other registration statement or any prospectus or prospectus supplement thereto; 
		

		
			 
		

		
			 (f) immediately notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of (i) the happening of any event as a result of which the prospectus or prospectus supplement contained in a Shelf Registration Statement or any other registration statement contemplated by this Agreement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained therein, in the light of the circumstances under which a statement is made); (ii) the issuance or express threat of issuance by the Commission of any stop order suspending the effectiveness of such Shelf Registration Statement or any other registration statement contemplated by this Agreement, or the initiation of any proceedings for that purpose; or (iii) the receipt by the Partnership of any notification with respect to the suspension 
		

		 

		

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		of the qualification of any Registrable Securities for sale under the applicable securities or blue sky laws of any jurisdiction. Following the provision of such notice, the Partnership agrees to as promptly as practicable amend or supplement the prospectus or prospectus supplement or take other appropriate action so that the prospectus or prospectus supplement does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing and to take such other commercially reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings related thereto; 
		

		
			(g) upon request and subject to appropriate confidentiality obligations, furnish to each Selling Holder copies of any and all transmittal letters or other correspondence with the Commission or any other governmental agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign securities exchange) relating to such offering of Registrable Securities; 
		

		
			(h) in the case of an Underwritten Offering, use commercially reasonable efforts to furnish upon request, (i) an opinion of counsel for the Partnership dated the date of the closing under the underwriting agreement and (ii) a “cold comfort” letter, dated the pricing date of such Underwritten Offering and a letter of like kind dated the date of the closing under the underwriting agreement, in each case, signed by the independent public accountants who have certified the Partnership’s financial statements included or incorporated by reference into the applicable registration statement, and each of the opinion and the “cold comfort” letter shall be in customary form and covering substantially the same matters with respect to such registration statement (and the prospectus and any prospectus supplement included therein) as have been customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to the underwriters in Underwritten Offerings of securities by the Partnership and such other matters as such underwriters and Selling Holders may reasonably request; 
		

		
			(i) otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement, covering a period of twelve months beginning within three months after the effective date of such Shelf Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder; 
		

		
			 
		

		
			(j) make available to the appropriate representatives of the Managing Underwriter and Selling Holders access to such information and Partnership and General Partner personnel as is reasonable and customary to enable such parties to establish a due diligence defense under the Securities Act; provided, that the Partnership need not disclose any non-public information to any such representative unless and until such representative has entered into a confidentiality agreement with the Partnership; 
		

		
			(k) use commercially reasonable efforts to cause all such Registrable Securities registered pursuant to this Agreement to be listed on each securities exchange or nationally recognized quotation system on which the Common Units issued by the Partnership are then listed; 
		

		
			(l) use commercially reasonable efforts to cause the Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Partnership to enable the Selling Holders to consummate the disposition of such Registrable Securities; 
		

		
			(m) provide a transfer agent and registrar for all Registrable Securities covered by such registration statement not later than the effective date of such registration statement; 
		

		
			(n) enter into customary agreements and take such other actions as are reasonably requested by the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition of such Registrable Securities (including, making appropriate officers of the General Partner available to participate in any “road show” presentations before analysts, and other customary marketing activities (including one-on-one meetings with prospective purchasers of the Registrable Securities)), provided, however,  that in the event the Partnership, using commercially reasonable efforts, is unable to make such appropriate officers of the General Partner available to participate in connection with any “road show” presentations and other customary marketing activities (whether in person or otherwise), the Partnership shall make such appropriate officers available to participate via conference call or other means of communication in connection with no more than one (1) “road show” presentation per Underwritten Offering); and 
		

		

		

		 

		

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		(o) if requested by a Selling Holder, (i) incorporate in a prospectus supplement or post-effective amendment such information as such Selling Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering and (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment. 
		

		
			The Partnership will not name a Holder as an underwriter as defined in Section 2(a)(11) of the Securities Act in any Shelf Registration Statement without such Holder’s consent. If the staff of the Commission requires the Partnership to name any Holder as an underwriter as defined in Section 2(a)(11) of the Securities Act, and such Holder does not consent thereto, then such Holder’s Registrable Securities shall not be included on such Shelf Registration Statement, such Holder shall no longer be entitled to receive Liquidated Damages under this Agreement with respect to such Holder’s Registrable Securities, and the Partnership shall have no further obligations hereunder with respect to Registrable Securities held by such Holder, unless such Holder has not had an opportunity to conduct customary underwriter’s due diligence (including receipt of comfort letters and opinions of counsel) with respect to the Partnership at the time such Holder’s consent is sought. 
		

		
			Each Selling Holder, upon receipt of notice from the Partnership of the happening of any event of the kind described in subsection (f) of this Section 2.05, shall forthwith discontinue offers and sales of the Registrable Securities by means of a prospectus or prospectus supplement until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by subsection (f) of this Section 2.05 or until it is advised in writing by the Partnership that the use of the prospectus may be resumed and has received copies of any additional or supplemental filings incorporated by reference in the prospectus, and, if so directed by the Partnership, such Selling Holder will, or will request the Managing Underwriter, if any, to deliver to the Partnership (at the Partnership’s expense) all copies in their possession or control, other than permanent file copies then in such Selling Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 
		

		
			Section 2.06 Cooperation by Holders.  
		

		
			The Partnership shall have no obligation to include Registrable Securities of a Holder in a Shelf Registration Statement or in an Underwritten Offering pursuant to Section 2.02(a) who has failed to timely furnish such information that the Partnership determines, after consultation with its counsel, is reasonably required in order for the registration statement or prospectus supplement, as applicable, to comply with the Securities Act. 
		

		
			Section 2.07 Restrictions on Public Sale by Holders of Registrable Securities.  
		

		
			Each Holder of Registrable Securities agrees to enter into a customary letter agreement with underwriters providing such Holder will not effect any public sale or distribution of Registrable Securities during the 60 calendar day period beginning on the date of a prospectus or prospectus supplement filed with the Commission with respect to the pricing of any Underwritten Offering, provided that (i) the duration of the foregoing restrictions shall be no longer than the duration of the shortest restriction imposed by the underwriters on the Partnership or the officers, directors or any other Affiliate of the Partnership or the General Partner on whom a restriction is imposed and (ii) the restrictions set forth in this Section 2.07 shall not apply to any Registrable Securities that are included in such Underwritten Offering by such Holder. In addition, this Section 2.07 shall not apply to any Holder that is not entitled to participate in such Underwritten Offering, whether because such Holder delivered an Opt-Out Notice prior to receiving notice of the Underwritten Offering or because such Holder (together with its Affiliates) holds less than the Piggyback Threshold Amount of the then-outstanding Registrable Securities (calculated based on the product of the Common Unit Price times the number of Registrable Securities) or because the Registrable Securities held by such Holder may be disposed of without restriction pursuant to any section of Rule 144 (or any successor or similar provision adopted by the Commission then in effect) under the Securities Act. 
		

		
			Section 2.08 Expenses.  
		

		
			(a) Expenses. The Partnership will pay all reasonable Registration Expenses as determined in good faith, including, in the case of an Underwritten Offering, whether or not any sale is made pursuant to such Underwritten Offering. Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any sale of its 
		

		 

		

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		Registrable Securities hereunder. For the avoidance of doubt, each Selling Holder’s pro rata allocation of Selling Expenses shall be the percentage derived by dividing (i) the number of Registrable Securities sold by such Selling Holder in connection with such sale by (ii) the aggregate number of Registrable Securities sold by all Selling Holders in connection with such sale. In addition, except as otherwise provided in Sections 2.08 and 2.09 hereof, the Partnership shall not be responsible for legal fees incurred by Holders in connection with the exercise of such Holders’ rights hereunder. 
		

		
			(b) Certain Definitions.  “Registration Expenses” means all expenses incident to the Partnership’s performance under or compliance with this Agreement to effect the registration of Registrable Securities on a Shelf Registration Statement pursuant to Section 2.01(a) or an Underwritten Offering covered under this Agreement, and the disposition of such Registrable Securities, including, without limitation, all registration, filing, securities exchange listing and NYSE MKT fees, all registration, filing, qualification and other fees and expenses of complying with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, Inc., fees of transfer agents and registrars, all word processing, duplicating and printing expenses, any transfer taxes, the fees and disbursements of counsel and independent public accountants for the Partnership, including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance, and, only if the Existing Registration Rights Agreements have been amended to provide for the same, the reasonable fees and disbursements of one counsel for the Selling Holders participating in such Shelf Registration Statement or Underwritten Offering to effect the disposition of such Registrable Securities, selected by the Holders of a majority of the Registrable Securities initially being registered under such Shelf Registration Statement or other registration statement as contemplated by this Agreement, subject to the reasonable consent of the Partnership. “Selling Expenses” means all underwriting discounts and selling commissions or similar fees or arrangements allocable to the sale of the Registrable Securities, and fees and disbursements of counsel to the Selling Holders, except for the reasonable fees and disbursements of counsel for the Selling Holders required to be paid by the Partnership pursuant to Sections 2.08 and 2.09, solely to the extent such fees and disbursements of counsel are required to be paid by the Partnership under the Existing Registration Rights Agreements.  
		

		
			Section 2.09 Indemnification.  
		

		
			(a) By the Partnership. In the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Partnership will indemnify and hold harmless each Selling Holder thereunder, its directors, officers, managers, employees and agents and each Person, if any, who controls such Selling Holder within the meaning of the Securities Act and the Exchange Act, and its directors, officers, employees or agents (collectively, the “Selling Holder Indemnified Persons”), against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or several, to which such Selling Holder Indemnified Person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact (in the case of any prospectus, in light of the circumstances under which such statement is made) contained in (which, for the avoidance of doubt, includes documents incorporated by reference in) such Shelf Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement or final prospectus contained therein, or any amendment or supplement thereof, or any free writing prospectus relating thereto or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made) not misleading, and will reimburse each such Selling Holder Indemnified Person for any legal or other expenses reasonably incurred by them in connection with investigating, defending or resolving any such Loss or actions or proceedings; provided, however, that the Partnership will not be liable in any such case if and to the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Selling Holder Indemnified Person in writing specifically for use in such Shelf Registration Statement or such other registration statement, or prospectus supplement, as applicable. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Selling Holder Indemnified Person, and shall survive the transfer of such securities by such Selling Holder. 
		

		
			(b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to indemnify and hold harmless the Partnership, the General Partner, their respective directors, officers, employees and agents and each Person, if any, who controls the Partnership within the meaning of the Securities Act or of the Exchange Act, and its 
		

		 

		

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		directors, officers, employees and agents, to the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only with respect to information regarding such Selling Holder furnished in writing by or on behalf of such Selling Holder expressly for inclusion in such Shelf Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement or final prospectus contained therein, or any amendment or supplement thereof, or any free writing prospectus relating thereto; provided, however, that the liability of each Selling Holder shall not be greater in amount than the dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale of the Registrable Securities giving rise to such indemnification. 
		

		
			(c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability that it may have to any indemnified party other than under this Section 2.09. In any action brought against any indemnified party, it shall notify the indemnifying party of the commencement thereof. The indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2.09 for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected; provided, however, that (i) if the indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to the indemnified party or (ii) if the defendants in any such action include both the indemnified party and the indemnifying party and counsel to the indemnified party shall have concluded that there may be reasonable defenses available to the indemnified party that are different from or additional to those available to the indemnifying party, or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, then the indemnified party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other reasonable expenses related to such participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other provision of this Agreement, no indemnifying party shall settle any action brought against any indemnified party with respect to which such indemnified party is entitled to indemnification hereunder without the consent of the indemnified party, unless the settlement thereof imposes no liability or obligation on, and includes a complete and unconditional release from all liability of, the indemnified party. 
		

		
			(d) Contribution. If the indemnification provided for in this Section 2.09 is held by a court or government agency of competent jurisdiction to be unavailable to any indemnified party or is insufficient to hold them harmless in respect of any Losses, then each such indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of such indemnified party on the other in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that in no event shall such Selling Holder be required to contribute an aggregate amount in excess of the dollar amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of Registrable Securities giving rise to such indemnification. The relative fault of the indemnifying party on the one hand and the indemnified party on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact has been made by, or relates to, information supplied by such party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph were to be determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to herein. The amount paid by an indemnified party as a result of the Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and other expenses reasonably incurred by such indemnified party in connection with investigating, defending or resolving any Loss that is the subject of this paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation. 
		

		
			(e) Other Indemnification. The provisions of this Section 2.09 shall be in addition to any other rights to indemnification or contribution that an indemnified party may have pursuant to law, equity, contract or otherwise. 
		

		

		

		 

		

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		Section 2.10 Rule 144 Reporting.  
		

		
			With a view to making available the benefits of certain rules and regulations of the Commission that may permit the sale of the Registrable Securities to the public without registration, the Partnership agrees to use its  commercially reasonable efforts to: 
		

		
			(a) make and keep public information regarding the Partnership available, as those terms are understood and defined in Rule 144 (or any successor or similar provision adopted by the Commission then in effect) under the Securities Act, at all times from and after the date hereof; 
		

		
			(b) file with the Commission in a timely manner all reports and other documents required of the Partnership under the Securities Act and the Exchange Act at all times from and after the date hereof; and 
		

		
			(c) so long as a Holder owns any Registrable Securities, furnish, unless otherwise available electronically at no additional charge via the Commission’s EDGAR system, to such Holder forthwith upon request a copy of the most recent annual or quarterly report of the Partnership, and such other reports and documents as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such Holder to sell any such securities without registration. 
		

		
			Section 2.11 Transfer or Assignment of Registration Rights.  
		

		
			The rights to cause the Partnership to register Registrable Securities granted to the Purchasers by the Partnership under this Article II may be transferred or assigned by any Purchaser to one or more transferees or assignees of Registrable Securities, subject to the transfer restrictions provided in Section 4.7(e) of the Amended Partnership Agreement, provided, however, that (a) the Partnership is given written notice prior to any said transfer or assignment, stating the name and address of each of the transferee or assignee and identifying the Registrable Securities with respect to which such registration rights are being transferred or assigned and (b) each such transferee or assignee assumes in writing responsibility for its portion of the obligations of such Purchaser under this Agreement. 
		

		
			Section 2.12 Limitation on Subsequent Registration Rights.  
		

		
			From and after the date hereof, the Partnership shall not, without the prior written consent of the Holders of at least a majority of the then outstanding Registrable Securities, enter into any agreement with any current or future holder of any securities of the Partnership that would allow such current or future holder to require the Partnership to include securities in any registration statement filed by the Partnership on a basis that is superior to the rights of the Holders of Registrable Securities hereunder.  
		

		
			ARTICLE III 
		

		
			MISCELLANEOUS 
		

		
			Section 3.01 Communications.  
		

		
			All notices and other communications provided for or permitted hereunder shall be made in writing by facsimile, electronic mail, courier service or personal delivery: 
		

		
			(a) if to an Purchaser: 
		

		
			To the respective address listed in the Preferred Unit Purchase Agreement 
		

		
			 
		

		
			(b) if to a transferee of a Purchaser, to such Holder at the address provided pursuant to Section 2.11 above; and 
		

		
			(c) if to the Partnership: 
		

		
			Sanchez Production Partners LP 
		

		
			1000 Main Street, Suite 3000
		

		
			Houston, TX 7702
		

		
			Attention: Charles C. Ward 
		

		
			Email: cward@sanchezpp.com
		

		

		

		 

		

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

		
			Andrews Kurth LLP
		

		
			600 Travis, Suite 4200
		

		
			Houston, TX 77002 
		

		
			Attention: Scott Olson 
		

		
			Facsimile: 713.238.7410
		

		
			Email: solson@andrewskurth.com 
		

		
			All such notices and communications shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or sent via Internet electronic mail; and when actually received, if sent by courier service. 
		

		
			Section 3.02 Successor and Assigns.  
		

		
			This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties, including subsequent Holders of Registrable Securities to the extent permitted herein. 
		

		
			Section 3.03 Assignment of Rights.  
		

		
			All or any portion of the rights and obligations of any Purchaser under this Agreement may be transferred or assigned by such Purchaser only in accordance with Section 2.11 hereof. 
		

		
			Section 3.04 Recapitalization, Exchanges, Etc. Affecting the Units.  
		

		
			The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all units of the Partnership or any successor or assign of the Partnership (whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits, recapitalizations, pro rata distributions of units and the like occurring after the date of this Agreement. 
		

		
			Section 3.05 Aggregation of Registrable Securities.  
		

		
			All Registrable Securities held or acquired by Persons who are Affiliates of one another shall be aggregated together for the purpose of determining the availability of any rights and applicability of any obligations under this Agreement. 
		

		
			Section 3.06 Specific Performance.  
		

		
			Damages in the event of breach of this Agreement by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed that each such Person, in addition to and without limiting any other remedy or right it may have, will have the right to an injunction or other equitable relief in any court of competent jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable relief. The existence of this right will not preclude any such Person from pursuing any other rights and remedies at law or in equity that such Person may have. 
		

		
			Section 3.07 Counterparts.  
		

		
			This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, including facsimile or .pdf counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement. 
		

		
			Section 3.08 Headings.  
		

		
			The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
		

		

		

		 

		

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			Section 3.09 Governing Law.  
		

		
			THIS AGREEMENT, INCLUDING ALL ISSUES AND QUESTIONS CONCERNING ITS APPLICATION, CONSTRUCTION, VALIDITY, INTERPRETATION AND ENFORCEMENT, SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK. 
		

		
			Section 3.10 Severability of Provisions.  
		

		
			Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting or impairing the validity or enforceability of such provision in any other jurisdiction. 
		

		
			Section 3.11 Entire Agreement.  
		

		
			This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the rights granted by the Partnership set forth herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 
		

		
			Section 3.12 Amendment.  
		

		
			This Agreement may be amended only by means of a written amendment signed by the Partnership and the Holders of a majority of the then outstanding Registrable Securities; provided, however, that no such amendment shall materially and adversely affect the rights of any Holder hereunder without the consent of such Holder. 
		

		
			 
		

		
			Section 3.13 No Presumption.  
		

		
			If any claim is made by a party relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular party or its counsel. 
		

		
			Section 3.14 Obligations Limited to Parties to Agreement.  
		

		
			Each of the parties hereto covenants, agrees and acknowledges that no Person other than the Purchasers (and their permitted transferees and assignees) and the Partnership shall have any obligation hereunder. Notwithstanding that one or more of the Purchasers may be a corporation, partnership or limited liability company, no recourse under this Agreement or under any documents or instruments delivered in connection herewith or therewith shall be had against any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Purchasers or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate thereof, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Purchasers or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate thereof, as such, for any obligations of the Purchasers under this Agreement or any documents or instruments delivered in connection herewith or therewith or for any claim based on, in respect of or by reason of such obligation or its creation, except in each case for any transferee or assignee of a Purchaser hereunder. 
		

		
			Section 3.15 Independent Nature of Purchaser’s Obligations.  
		

		
			The obligations of each Purchaser under this Agreement are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. Nothing contained herein, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement. Each Purchaser shall be entitled 
		

		 

		

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		to independently protect and enforce its rights, including, the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. 
		

		
			Section 3.16 Interpretation.  
		

		
			Article and Section references are to this Agreement, unless otherwise specified. All references to instruments, documents, contracts and agreements are references to such instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified. The words “include,” “includes” and “including” or words of similar import shall be deemed to be followed by the words “without limitation.” Whenever any determination, consent or approval is to be made or given by an Purchaser under this Agreement, such action shall be in such Purchaser’s sole discretion unless otherwise specified. Unless expressly set forth or qualified otherwise (e.g., by “Business” or “trading”), all references herein to a “day” are deemed to be a reference to a calendar day.
		

		
			 
		

		
			 [SIGNATURE PAGES FOLLOW] 
		

		
			 
		

		

		

		 

		

			16

		

		

			 

		

 

		
		

		
			IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						SANCHEZ PRODUCTION PARTNERS LP

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						Sanchez Production Partners GP LLC,

				
	
					
						 

					
					
						 

					
					
						its general partner

				
	
					
						 

					
					
						 

				
	
					
						By: 

					
					
						 

					
					
						/s/ Charles C. Ward

				
	
					
						 

					
					
						 

					
					
						Name:  Charles C. Ward

					
						Title:  Chief Financial Officer

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		

		

		 

		

			[Signature page to Registration Rights Agreement]

		

		

			 

		

		

			 

		

		

			 

		

 

		
		

		
			 
		

		
			 
		

		
			By:  ____/s/ Darren Schuringa____________
		

		
			Name:  Darren Schuringa
		

		
			Address:  111 West 110th St., Apt 4C
		

		
			            New York, NY 10026
		

		
			 
		

		
			 
		

		
			By:  ___/s/ Sarah Schuringa_______________
		

		
			Name:  Sarah  Schuringa
		

		
			Address:  150 East 77th St., Apt 7C
		

		
			            New York, NY 10075
		

		
			 
		

		
			 
		

		
			By:  ____/s/ Grace Schuringa______________
		

		
			Name:  Grace  Schuringa
		

		
			Address:  150 East 77th St., Apt 7C
		

		
			            New York, NY 10075
		

		
			 
		

		
			 
		

		
			By:  ___/s/ William Hersey______________
		

		
			Name:  William Hersey
		

		
			Address:  200 East 33rd St., Apt 8E
		

		
			            New York, NY 10016
		

		
			 
		

		
			 
		

		
			By:  ___/s/ Michael Borges______________
		

		
			Name:  Michael Borges
		

		
			Address:  264 West 23rd St., Apt 3B
		

		
			            New York, NY 10011
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			[Signature page to Registration Rights Agreement]

		

		

			 

		

		

			 

		

		

			 

		

 

		

			 

		

		 
		

		
			Schedule A 
		

		
			Purchasers
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

				
	
					
						Darren Schuringa

					
						Sarah Schuringa

					
						Grace Schuringa

					
						William Hershey

					
						Michael Borges

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