Document:

Exhibit 10.4

 

MEMORANDUM
OF AGREEMENT

 

Dated: 3rd November
2004

	
   

  	
  Norwegian Shipbrokers' Association's Memorandum

  of Agreement for sale and purchase of 

  ships. Adopted by The Baltic and International

  Maritime Council (BIMCO) in 1956.

  Code-name

  SALEFORM 1993

  Revised 1966, 1983 and 1986/87.

  

 

ESSAR SHIPPING LIMITED, of Essar House,
Mahalaxmi, Mumbai 400 034, India hereinafter called the Sellers, have agreed to sell,
and 

TOP TANKERS INC., of 109-111 Messogion Ave,
Politia Centre, Bldg C 1, Athens 115 26, Greece, or its guaranteed nominee

hereinafter called the Buyers, have agreed to buy

 

Name: M.T. Chanda

 

Classification Society/Class: ABS

 

Built:  1992                        By: Samsung Heavy Industries Ltd, South Korea

 

Flag: Indian                    Place of Registration: Mumbai

 

Call Sign: VVWO                    Grt/Nrt: 80,569/45,730

 

IMO Number: 9014834

 

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

 

Definitions

 

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

 

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

 

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

 

1.                                       Purchase Price US$ 52,425,000 (United States Dollars Fifty Two
Million Four Hundred and Twenty Five Thousand only) Cash

 

2.             Deposit

 

A) Non-refundable Deposit

Buyers are to place the amount of USD
500,000 promptly upon lifting of Sellers BOD approval as deposit in a joint
account (account details to be advised) between the Sellers and the Buyers.
Buyers to give proof of transmission of deposit within 24 hours upon Sellers
lifting their BOD approval. This proof to come directly from the Buyers bank to
Sellers bank. Non-payment of the deposit under this Clause will constitute a
default and Sellers will have full recourse to Top Tankers Inc. for the amount.

 

This amount will be a non-refundable
deposit in the event the Buyers do not lift their "subject" for MT
Chanda (the "Vessel") as per Clause 17. In such a case this
deposit will be released to the Sellers. In the event the Buyers exercise the
option to buy the Vessel as per Clause 17(b), then the amount of
USD 500,000 will be adjusted towards the 10% Deposit as per
Clause 2B. In no event will more than USD 500,000 of such
non-refundable deposit be adjusted towards the purchase of this Vessel.

 

B) Ten Percent (10%) Deposit

As security for the correct fulfilment of this Agreement the Buyers
shall pay a deposit of 10% (ten per cent) of the Purchase Price within three (3)                                  banking days from
the date of the Buyers lifting
their subject in Clause 17 of this Agreement. This deposit
shall be placed with Sellers nominated bank in London and held by them in a
joint interest bearing
account for the Sellers and the Buyers, to be released in accordance with joint
written instructions of the Sellers and the Buyers. Interest, if any, to be
credited to the Buyers. Any fee charged by the bank for holding the said deposit and closing shall be
borne equally by the Sellers and the Buyers.

 

3.             Payment

 

The said Purchase Price along with extra payment for bunkers/luboils etc. shall
be paid in full free of bank charges to Sellers nominated account

 

at closing on delivery of the Vessel and in exchange for the usual/normal
sale documents as mutually agreed, but not later than 3 banking
days after the Vessel is in every respect physically ready for delivery in
accordance with the terms and conditions of this Agreement and Notice of
Readiness has been given in accordance with Clause 5.

 

4.             Inspections

 

a)*                               The Buyers have inspected and accepted
the Vessel's classification records. The Buyer have waived their right to inspect the vessel and
have accepted the Vessel without physical inspection and the sale is outright and
definite, subject only to the terms and conditions of this Agreement.

 

Sellers will however permit Buyers to inspect the Vessel in
due course for their filing/planning purposes. However, it is clearly
understood that such inspection does not constitute a "subject" to
the sale.

 

5.             Notices,
time and place of delivery

 

a)                                      The Sellers shall keep the Buyers well
informed of the Vessel's itinerary and shall provide the Buyers with 15,10, 7,5 days approximate notice,
and 3,1 days definite notice of
the estimated time of arrival at the intended place of delivery. When the Vessel
is at the place of delivery and in every respect physically ready for delivery
in accordance with this Agreement, the Sellers shall give the Buyers a written
Notice of Readiness for delivery. Notices to be sent by email or fax via brokers

 

b)                                     The Vessel shall be delivered and taken
over charter-free, free of cargo, free of
stowaways, safely afloat at a one safe and freely accessible berth, port or anchorage Worldwide range, but excluding
ice-bound areas and war-risks areas (not permitted by Lloyds underwriters even
upon payment of AWRP) 

in the Sellers' option.

 

Expected time of delivery: 1st January 2005 - 15th April 2005 (both days inclusive) in
Sellers option.

 

Date of cancelling (see Clauses 5 c),
6 b) (iii), and 14): 15th April 2005 in Buyers option

 

c)                                      If the Sellers anticipate that,
notwithstanding the exercise of due diligence by them, the Vessel will not be
ready for delivery by the cancelling date they may notify the Buyers in writing
stating the date when they anticipate that the Vessel will be ready for
delivery and propose a new cancelling date. Upon receipt of such notification
the Buyers shall have the option of either cancelling this Agreement in
accordance with Clause 14 within 2 working days of receipt of the notice or of accepting
the new date as the new cancelling date. If the Buyers have not declared their
option within 2 working
days of receipt of the Sellers' notification or if the Buyers accept the new
date, the date proposed in the Sellers' notification shall be deemed to be the new
cancelling date and shall be substituted for the cancelling date stipulated in
line 61.

 

If this Agreement is maintained with the new
cancelling date all other terms and conditions hereof including those contained
force and effect. Buyers and Sellers will
not have the right for any claims due to the fact that Vessel missed her
Cancelling date.

 

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

 

 

6.             Drydocking/Divers
Inspection See
Clause 21

 

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

 

7.             Spares/bunkers,
etc.

 

The Sellers shall deliver the Vessel to the Buyers with everything
belonging to her on board, on order and on shore. All spare parts and spare
equipment, if any, belonging to the Vessel used or unused, whether on board or
not shall become the Buyers' property. Forwarding charges, if any, shall be for
the Buyers' account. The Sellers are not required to replace spare parts which
are taken out of spare and used as replacement prior to delivery, but the
replaced items shall be the property of the Buyers. The radio installation, wireless and
navigational equipment, loading instrument (loadicator) and GMDSS, PC's and Printers
shall be included in the sale

 

without extra payment. Unused/used stores and
provisions shall be included in the sale and be taken over by the Buyers
without extra payment.

 

The Sellers have the right to take ashore crockery, plates, cutlery,
linen and other articles bearing the Sellers’ flag or name, provided they
replace same with similar unmarked items. Library, forms, etc., exclusively for
use in the Sellers’ vessel(s), shall be excluded without compensation.
Captain’s, Officers’ and Crew’s personal belongings including the slop chest
are to be excluded from the sale, as well as the following additional items
(including items on hire):

 

- VIDEOTEL LIBRARY

- OXYGEN, ACETYLENE & FREON CYLINDERS

 

The Buyers shall take over and pay extra for the remaining bunkers on board and unused/unbroached
lubricating oils in storage tanks and sealed drums. Bunkers to be paid for at Sellers last net contract price at
Vessel’s last supply which to be evidenced by relevant invoices/vouchers,
excluding barging expense. Luboils to be paid for at Sellers net contract
prices (less Sellers discounts/rebates) at Vessel’s last supply which to be
evidenced by relevant invoices/vouchers. Payment under this
Clause shall be made at the same time and place and in the same currency as the
Purchase Price.

 

8.             Documentation

 

The place of closing/payment: London

 

In exchange for payment of the Purchase Price and delivery of the Vessel, the Buyers and Sellers
shall provide each other with
their respective delivery
documents. Buyers and Sellers
shall mutually advise their requirements and the same to be incorporated as an
Addendum to this Agreement. Signing of such Addendum shall by no means delay
signature of this Agreement by both parties. However the list of delivery
documents required by Buyers/Sellers to be advised within 7 days of signing
this Agreement by fax.

 

At the time of delivery the Buyers and Sellers shall sign and deliver
to each other a Protocol of

 

 

Delivery and Acceptance confirming the date and time of delivery of the
Vessel from the Sellers to the Buyers.

 

At the time of delivery the Sellers shall hand to the Buyers on board the
classification certificate(s), a set of manuals/drawings relative to the main engine/auxillaries in
addition to all other existing manuals/instruction books as well
as all plans and technical records
etc., which are on board the Vessel or in their possession. Other certificates which are on
board the Vessel shall also be handed over to the Buyers unless the Sellers are
required to retain same, in which case the Buyers to have the right to take
copies. Other technical documentation which may be in the Sellers’ possession
shall be promptly forwarded to the Buyers at their expense, if they so request.
The Sellers may keep the Vessel’s log books but the Buyers to have the right to
take copies of same.

 

9.             Encumbrances

 

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

 

10.           Taxes, etc.

 

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

 

11.           Condition on delivery

 

The Vessel with everything belonging to her shall be at the Sellers’
risk and expense until she is delivered to the Buyers, but subject to the terms
and conditions of this Agreement she shall be delivered and taken over substantially in the same condition as
at the date of this Agreement,
fair wear and tear excepted. However, the Vessel shall be delivered with her present class
maintained with all continuous
surveys valid and upto date, free from any condition of Class /recommendation*,
free of average damage affecting the Vessel's class, and with her
classification certificates and national/international trading certificates, clean, valid and unextended without
condition/recommendation* by Class or the relevant authorities at the time of
delivery. Vessel is taken over without inspection, the date of this Agreement
shall be the relevant date.

 

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

 

12.           Name/markings

 

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

 

13.           Buyers’ default

 

Should the deposit not be paid in accordance with Clause 2, the Sellers
have the right to cancel this Agreement, and they shall be entitled to claim
compensation for their losses and for all expenses incurred together with
interest. Should the Purchase Price not be paid in accordance with Clause 3,
the Sellers have the right to cancel the Agreement, in which case the deposit
together with interest earned shall be released to the Sellers. If the deposit
does not cover their loss, the Sellers shall be entitled to claim further
compensation for their losses and for all expenses incurred together with
interest.

 

 

14.           Sellers’ default

 

Should the Sellers fail to give Notice of Readiness in accordance with
Clause 5 a) or fail to be ready to validly complete a legal transfer by the
date stipulated in line 61 or new cancelling date as per Clause 5c the Buyers shall
have the option of cancelling this Agreement provided always that the Sellers
shall be granted a maximum of 3 banking days after Notice of Readiness has been
given to make arrangements for the documentation set out in Clause 8. If after
Notice of Readiness has been given but before the Buyers have taken delivery,
the Vessel ceases to be physically ready for delivery and is not made physically
ready again in every respect by the date stipulated in line 61 or new cancelling date as as per
Clause 5c and new Notice of Readiness given, the Buyers shall
retain their option to cancel. In the event that the Buyers elect to cancel
this Agreement the deposit under Clause 2A and 2B together with interest earned
shall be released to them immediately. Buyers and Sellers will not have the right for any claims due to the
fact that Vessel missed her Cancelling date.

 

15.           Buyers’ representatives

 

After this Agreement has been signed by both parties and the 10% deposit under Clause 2B has
been lodged, the Buyers have the right to place two representatives on board
the Vessel for a maximum period
of thirty (30) days at their sole risk and expense, who will remain on board until
delivery. These representatives are on board for the purpose of
familiarisation and in the capacity of observers only, and they shall not
interfere in any respect with the manning/operation of the Vessel. The Buyers’
representatives shall sign the Sellers’ letter on indemnity prior to their
embarkation.

 

16.           Arbitration

 

a)*                               This Agreement shall be governed by and
construed in accordance with English law and any dispute arising out of this
Agreement shall be referred to arbitration in London in accordance with the
Arbitration Acts 1950 and 1979 or any statutory modification or re-enactment
thereof for the time being in force, one arbitrator being appointed by each
party. On the receipt by one party of the nomination in writing of the other
party’s arbitrator, that party shall appoint their arbitrator within fourteen
days, failing which the decision of the single arbitrator appointed shall
apply. If two arbitrators properly appointed shall not agree they shall appoint
an umpire whose decision shall be final. Arbitrators to be members of London Maritime Arbitrators Association.

 

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

 

(CLAUSES 17 - 22 MAKE AN INTEGRAL PART OF THIS AGREEMENT)

 

 

17) BUYERS SUBJECTS & OPTION FOR
VESSELS

 

A) This Agreement is part of an agreement
reached between Buyers and Sellers for enbloc sale of five (5) vessels, namely,
MT Kamlesh, MT Shravan, MT Kishore, MT Nandu and MT Chanda, and this sale is
SUBJECT to “FOLLOW ON OFFERING” BY MSSRS TOP TANKERS INC. This ‘Subject’ is to
be lifted latest by 25th November 2004, close of business, New York, USA

 

B) At the time of lifting Buyers ‘subject’
under sub-clause (a)above, Buyers to declare the number of vessels to be
purchased, which in any case will be minimum one (1). In the event that the
number of vessels to be purchased is less than five (5), then the order of
purchase of the vessels by the buyers will be in the following sequence:

- If 1 vessel to be purchased by the Buyers
it will be MT Kamlesh

- If 2 vessels to be purchased by the
Buyers it will be MT Kamlesh and MT Shravan

- If 3 vessels to be purchased by the
Buyers it will be MT Kamlesh, MT Shravan, and MT Kishore

- If 4 vessels to be purchased by the
Buyers it will be MT Kamlesh, MT Shravan, MT Kishore and MT Nandu

 

18) SELLERS SUBJECT

 

Sellers’ Board Approval has been lifted and
conveyed to Buyers through Brokers via fax dated 3rd November 2004 at 1500
hours Indian time.

 

19) P & C

 

The Price, terms and conditions of the sale
are to be kept strictly private and confidential by all parties concerned.
However, should the details of the sale become known or reported in the market,
neither the Buyers nor the Sellers shall have the right to cancel this
Agreement. Except that certain terms and conditions of this transaction will be
publicly disclosed and disseminated as required by S.E.C., NASDAQ, BSE and SEBI
rules and regulations.

 

20) NO BLACKLIST

 

Sellers to confirm in writing that to the
best of their knowledge, the Vessel is not blacklisted by any state or
organisation such as the ITF or by the Arab Boycott League.

 

21) DRYDOCKING

 

No pre-delivery drydocking clause to apply.
However the Buyers have the right to inspect the Vessel’s underwater parts by a
diver approved by Class, which shall be arranged by Buyers at Buyers expense
prior delivery. If the conditions at the place of underwater survey are
unsuitable for such inspection due to tides/weather/underwater visibility/not clear-sufficient
waters due to water depth, then the Sellers shall immediately make the Vessel
available at a suitable alternative place near to the delivery port without any
extra cost from the Buyers. The Sellers to have the option for divers
inspection to take place ,at a place with clear water visibility before the
last discharging port, provided ample notice is given to Buyers for
preperation. In the event the Buyers choose such diver’s inspection, same shall
be carried out in the presence of the Vessel’s Class surveyor (whom to be for
Sellers expense) and in the presence of the Sellers/Buyers representatives
without interferring with the Vessel’s operation. Should any damage be found
during such inspection that will impose a recommendation and/or condition of
Class, then:

 

a) In case the Class imposes a
recommendation and/or condition of Class but the Vessel is not required to be
drydocked before her next scheduled drydock, then the Sellers shall pay the
Buyers the direct cost only (excluding drydocking costs) to repair such damage
in a way which is acceptable by the Class and which to be based on the average
of two (2) quotations given by two reputable independent repair yards at port
of delivery or nearby, one at Sellers choice and one at Buyers choice. The
above amount agreed shall be deducted from the balance of the purchase money at
the time of delivery.

 

 

B) In case the Class requires the Vessel to
be drydocked before next drydocking survey, the Sellers shall drydock the
Vessel as per Clause 6 (c) of NSF 1993, which clause shall apply excepting that
tailshaft withdrawl will be done only if Class requires same to be done, at
their expense prior to delivery of the Vessel, and repair same to Class
satisfaction. Delivery date shall be extended pro-rata and Buyers to have the
right to attend such repairs without interfering to Sellers repairs. Such
extension will be given by Buyers for a maximum period of 60 days.

 

In any case of the above, whether damage is
found or not, the cost of the divers inspection shall be for the Buyers account
whilst the cost of the Class society attendance shall be for Sellers account.
The Class shall at all times be the sole arbitrator as to whether underwater
damage, if any, imposes condition/ recommendation of Class. The decision of
Class as to whether underwater damage, if any, imposes a
condition/recommendation of Class shall be final and binding for both parties.

 

22) TIME CHARTER ARRANGEMENT AFTER 1ST
FEBRUARY 2005

 

In the event the Vessel is not delivered by
31st January 2005 pursuant to Buyers lifting their subject as per Clause 17,
then the Sellers will give the Vessel on a timecharter on the following terms:

 

The Sellers will timecharter the Vessel to the Buyers until
the cancelling date 15th April 2005 at a rate of USD 1 per day. The Buyers will
immediately charter back the Vessel to Essar Shipping Limited , Mumbai or its
nominee, on Time Charter at a rate of USD 29,000 per day net. However the
Sellers will have a right to deliver the ship as per the delivery terms at any
time between 1st February 2005 to 15th April 2005. Such hire is payable 15 days
in advance. Otherwise standard TC terms to apply. It is understood that the
Charter Party will not include an offhire clause (ie: whatever might happen
Buyers cannot be put off-hire). Also Buyers will not be liable for any claim
(such as for pollution, disbursement accounts, unpaid expenses of any nature).
In case Buyers fail to take delivery of the Vessel in accordance with this
agreement, the total amount paid under this charter by Sellers shall be
returned to them by Buyers immediately without any contention and this will be
guaranteed by Top Tankers Inc., the NASDAQ listed entity.

 

	
  For the Sellers

  	
   

  	
  For the Buyers

  
	
   

  	
   

  	
   

  
	
  /s/ Rajeev Nayyer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RAJEEV NAYYER

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:Exhibit 10.5

 

MEMORANDUM OF AGREEMENT

 

Dated: 3rd November 2004

	
   

  	
  Norwegian Shipbrokers' Association's Memorandum

  of Agreement for sale and purchase of 

  ships. Adopted by The Baltic and International

  Maritime Council (BIMCO) in 1956.

  Code-name

  SALEFORM 1993

  Revised 1966, 1983 and 1986/87.

  

 

ESSAR SHIPPING
LIMITED, of Essar House, Mahalaxmi, Mumbai 400 034, India hereinafter
called the Sellers, have agreed to sell, and

TOP TANKERS INC.,
of 109-111 Messogion Ave, Politia Centre, Bldg C 1, Athens 115 26, Greece,

or its guaranteed
nominee

hereinafter called the Buyers, have agreed to
buy

 

Name: M.T. NANDU

 

Classification Society/Class: ABS

 

Built: 1992                            By: Samsung Heavy Industries Ltd, South Korea

 

Flag: Indian                          Place
of Registration: Mumbai

 

Call Sign: VVWU                 Grt/Nrt: 80,569/45,730

 

IMO Number:
9014822

 

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

 

Definitions

 

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

 

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

 

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

 

1.             Purchase
Price US
$52,425,000 (United States Dollars Fifty Two Million Four Hundred and Twenty
Five Thousand only) Cash

 

2.             Deposit

 

A) Non-refundable
Deposit

Buyers are to
place the amount of USD 500,000 promptly upon lifting of Sellers BOD approval
as deposit in a joint account (account details to be advised) between the
Sellers and the Buyers. Buyers to give proof of transmission of deposit within
24 hours upon Sellers lifting their BOD approval. This proof to come directly
from the Buyers bank to Sellers bank. Non-payment of the deposit under this
Clause will constitute a default and Sellers will have full recourse to Top
Tankers Inc. for the amount.

 

This amount will
be a non-refundable deposit in the event the Buyers do not lift their “subject”
for MT Nandu (the “Vessel) as per Clause 17. In such a case this deposit will
be released to the Sellers. In the event the Buyers exercise the option to buy
the Vessel as per Clause 17B, then the amount of USD 500,000 will be adjusted
towards the 10% Deposit as per Clause 2B. In no event will more than USD
500,000 of such non-refundable deposit be adjusted towards the purchase of this
Vessel.

 

B) Ten Percent
(10%) Deposit

As security for the correct fulfillment of
this Agreement the Buyers shall pay a deposit of 10% (ten per cent) of the
Purchase Price within three (3)
            
banking days from the date of the Buyers lifting their subject in Clause 17 of this Agreement.
This deposit shall be placed with Sellers nominated bank in London

 

and held by them in a joint interest bearing
account for the Sellers and the Buyers, to be released in 

 

 

 

accordance with joint with instructions of
the Sellers and the Buyers, interest, if any, to be credited to the Buyers. Any
fee charged by the bank
for holding the said deposit and closing shall be borne equally by the Sellers and
the Buyers.

 

3.             Payment

 

The said Purchase Price along with extra payment for bunkers/luboils etc.
shall be paid in full free of bank charges to Sellers nominated account

 

at closing on delivery of
the Vessel and in exchange for
the usual/normal sale documents as mutually agreed,
but not later than 3 banking days after the Vessel is in every respect
physically ready for delivery in accordance with the terms and conditions of
this Agreement and Notice of Readiness has been given in accordance with Clause
5.

 

4.             Inspections

 

a)*
                            The Buyers have
inspected and accepted the Vessel’s classification records. The Buyers have waived their right to inspect
the vessel and have accepted the Vessel without physical inspection and the sale is
outright and definite, subject only to the terms and conditions of this
Agreement.

 

Sellers will however permit Buyers to
inspect the Vessel in due course for their filing/planning purposes. However,
it is clearly understood that such inspection does not constitute a “subject”
to the sale.

 

5.             Notices,
time and place of delivery

 

a)                                      The Sellers
shall keep the Buyers will informed of the Vessel’s itinerary and shall provide
the Buyers with 15,10, 7,5 days approximate notice, and 3, 1 days definite notice of the estimated time of
arrival at the intended place of delivery. When the Vessel is at the place of
delivery and in every respect physically ready for delivery in accordance with
this Agreement, the Sellers shall give the Buyers a written Notice of Readiness
for delivery. Notices to be sent by
email or fax via brokers

 

b)                                     The Vessel
shall be delivered and taken over charter-free, free of cargo, free of stowaways, safely
afloat at a one
safe and freely
accessible berth, port or
anchorage Worldwide range, but
excluding ice-bound areas and war risks areas (not

 

 

 permitted by Lloyds underwriters even upon payment of AWRP) in the Sellers’ option.

 

Expected time of delivery: 1st January 2005 - 15th April
2005 (both days inclusive) in Sellers option.

 

Date of canceling (see Clauses 5 c), 6 b) (iii)
and 14): 15th April 2005 in
Buyers option

 

c)                                      If the Sellers
anticipate that, notwithstanding the exercise of due diligence by them, the
Vessel will not be ready for delivery by the cancelling date they may notify
the Buyers in writing stating the date when they anticipate that the Vessel
will be ready for delivery and propose a new cancelling date. Upon receipt of such
notification the Buyers shall have the option of either cancelling this
Agreement in accordance with Clause 14 within 2 working days of receipt of the notice or of
accepting the new date as the new cancelling date. If the Buyers have not
declared their option within 2 working days of receipt of the Sellers’ notification
or if the Buyers accept the new date, the date proposed in the Sellers’
notification shall be deemed to be the new cancelling date and shall be
substituted for the cancelling date stipulated in line 81.

 

If this Agreement is
maintained with the new cancelling date all other terms and conditions hereof
including those contained in Clauses 5 a) and 5 c) shall remain unaltered and
in full force and effect. Buyers and Sellers will not have the right for any claims due to the
fact that Vessel missed her Cancelling date.

 

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

 

6.             Drydocking/Divers
Inspection See
Clause 21

 

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

 

7.             Spares/bunkers,
etc.

 

The Sellers shall deliver the Vessel to the
Buyers with everything belonging to her on board, on order and on shore. All spare parts and
spare equipment if any, belonging to the Vessel used or unused, whether on
board or not shall become the Buyers’ property. Forwarding charges, if any,
shall be for the Buyers’ account. The Sellers are not required to replace spare
parts which are taken out of spare and used as replacement prior to delivery,
but the replaced items shall be the property of the Buyers. The radio
installation, wireless
and navigational equipment, loading instrument (loadicator) and GMDSS, PC’s and Printers
shall be included in the sale without extra payment. Unused/used store and
provisions shall

 

 

 

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

 

The Sellers have the right to take a shore
crockery, plates, cutlery, linen and other articles bearing the Sellers’ flag
or name, provided they replace same with similar unmarked items. Library,
forms, etc., exclusively for use in the Sellers’ vessel(s), shall be excluded
without compensation. Captain’s, Officers’ and Crew’s personal belonging
including the slop chest are to be excluded from the sale, as well as the
following additional items (including items on hire) :

 

-VIDEOTEL LIBRARY

- OXYGEN, ACETYLENE & FREON CYLINDERS

 

The Buyers shall take over and pay extra for the
remaining bunkers on board
and unused/unbroached
lubricating oils in storage tanks and sealed drums. Bunkers to be paid for at Sellers last net contract price at
Vessel’s last supply which to be evidenced by relevant invoices/vouchers,
excluding barging expense. Luboils to be paid for at Sellers net contract
prices (less Sellers discounts/rebates) at Vessel’s last supply which to be
evidenced by relevant invoices/vouchers. Payment under this
Clause shall be made at the same time and place and in the same currency as the
Purchase Price.

 

8.             Documentation

 

The place of closing/payment: London

 

In exchange for payment of the Purchase Price
and delivery of the Vessel,
the Buyers and Sellers
shall provide each other
with their respective
delivery documents. Buyers and Sellers
shall mutually advise their requirements and the same to be incorporated as an
Addendum to this Agreement. Signing of such Addendum shall by no means delay
signature of this Agreement by both parties. However the list of delivery
documents required by Buyers/Sellers to be advised within 7 days of signing
this Agreement by fax.

 

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

 

 

Buyers.

 

At the time of delivery the Sellers shall
hand to the Buyers on board
the classification certificates(s), a set of manuals/drawings relative to the main engine/auxillaries in
addition to all other existing manuals/instruction books as well
as all plans and technical records etc.,
which are on board the Vessel or in their possession. Other certificates which are on
board the Vessel shall also be handed over to the Buyers unless the Sellers are
required to retain same, in which case the Buyers to have the right to take
copies. Other technical documentation which may be in the Sellers’ possession
shall be promptly forwarded to the Buyers at their expense, if they so request.
The Sellers may keep the Vessel’s log books but the Buyers to have the right to
take copies of same.

 

9.             Encumbrances

 

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

 

10.           Taxes, etc.

 

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

 

11.           Condition on
delivery

 

The Vessel with everything belonging to her
shall be at the Sellers’ risk and expense until she is delivered to the Buyers,
but subject to the terms and conditions of this Agreement she shall be
delivered and taken over substantially in the same condition as at the date of this Agreement fair
wear and tear excepted.

 

However, the Vessel shall be delivered with
her present class
maintained with all continuous
surveys valid and upto date, free from any condition of Class /recommendation*,
free of average damage affecting the Vessel’s class, and with her
classification certificates and national/international trading certificates, clean, valid and unextended without
condition/recommendation* by Class or the relevant authorities at the time of
delivery. Vessel is taken over without inspection, the date of this Agreement
shall be the relevant date.

 

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

 

12.           Name/markings

 

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

 

13.           Buyer’s
default

 

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

 

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

 

 

 

14.           Sellers’
default

 

Should the Sellers fail to give Notice of
Readiness in accordance with Clause 5 a) or fail to be ready to validly
complete a legal transfer by the date stipulated in line 61 or new cancelling date as per Clause
5c the Buyers shall have the option of cancelling this Agreement
provided always that the Sellers shall be granted a maximum of 3 banking days
after Notice of Readiness has been given to make arrangements for the
documentation set out in Clause 8. If after Notice of Readiness has been given
but before the Buyers have taken delivery, the Vessel ceases to be physically
ready for delivery and is not made physically ready again in every respect by
the date stipulated in line 61 or new cancelling date as as per Clause 5c and new
Notice of Readiness given, the Buyers shall retain their option to cancel. In
the event that the Buyers elect to cancel this Agreement the deposit under Clause 2A and 2B together
with interest earned shall be released to them immediately. Buyers and Sellers will not have the
right for any claims due to the fact that Vessel missed her Cancelling date

 

15.           Buyers’
representatives

 

After this Agreement has been signed by both
parties and the 10%
deposit under Clause 2B
has been lodged, the Buyers have the right to place two representatives on
board the Vessel for a maximum period
of thirty (30) days at their sole risk and expense, who will remain on board until
delivery. These representatives are on board for the purpose of
familiarisation and in the capacity of observers only, and they shall not
interfere in any respect with manning/operation of the Vessel. The Buyers’
representatives shall sign the Sellers letter of indemnity prior to their
embarkation.

 

16.           Arbitration

 

a)*                               This Agreement
shall be governed by and construed in accordance with English law and any
dispute arising out of this Agreement shall be referred to arbitration in
London in accordance with the Arbitration Acts 1950 and 1979 or any statutory
modification or re-enactment thereof for the time being in force, one
arbitrator being appointed by each party. On the receipt by one party of the
nomination in writing of the other party’s arbitrator, that party shall appoint
their arbitrator within fourteen days, falling which the decision of the single
arbitrator appointed shall apply. If two arbitrators properly appointed shall
not agree they shall appoint an umpire whose decision shall be final. Arbitrators to be members of London
Maritime Arbitrators Association.

 

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

 

(CLAUSES 17 - 22 MAKE AN INTEGRAL PART OF
THIS AGREEMENT)

 

 

17) BUYERS
SUBJECTS & OPTION FOR VESSELS

 

A) This Agreement
is part of an agreement reached between Buyers and Sellers for enbloc sale of
five (5) vessels, namely, MT Kamlesh, MT Shravan, MT Kishore, MT Nandu and MT
Chanda, and this sale is SUBJECT to “FOLLOW ON OFFERING” BY MSSRS TOP TANKERS
INC. This ‘Subject’ is to be lifted latest by 25th November 2004, close of
business, New York, USA

 

B) At the time of
lifting Buyers ‘subject’ under sub-clause (a)above, Buyers to declare the
number of vessels to be purchased, which in any case will be minimum one (1).
In the event that the number of vessels to be purchased is less than five (5),
then the order of purchase of the vessels by the buyers will be in the
following sequence:

- If 1 vessel to
be purchased by the Buyers it will be MT Kamlesh

- If 2 vessels to
be purchased by the Buyers it will be MT Kamlesh and MT Shravan

- If 3 vessels to
be purchased by the Buyers it will be MT Kamlesh, MT Shravan, and MT Kishore,

- If 4 vessels to
be purchased by the Buyers it will be MT Kamlesh, MT Shravan, MT Kishore, and
MT Nandu

 

18) SELLERS
SUBJECT

 

Sellers’ Board
Approval has been lifted and conveyed to Buyers through Brokers via fax dated
3rd November 2004 at 1500 hours Indian time.

 

19) P & C

 

The Price, terms
and conditions of the sale are to be kept strictly private and confidential by
all parties concerned. However, should the details of the sale become known or
reported in the market, neither the Buyers nor the Sellers shall have the right
to cancel this Agreement. Except that certain terms and conditions of this
transaction will be publicly disclosed and disseminated as required by S.E.C.,
NASDAQ, BSE and SEBI rules and regulations.

 

20) NO BLACKLIST

 

Sellers to
confirm in writing that to the best of their knowledge, the Vessel is not
blacklisted by any state or organisation such as the ITF or by the Arab Boycott
League.

 

21) DRYDOCKING

 

No pre-delivery
drydocking clause to apply. However the Buyers have the right to inspect the Vessel’s
underwater parts by a diver approved by Class, which shall be arranged by
Buyers at Buyers expense prior to delivery. If the conditions at the place of
underwater survey are unsuitable for such inspection due to
tides/weather/underwater visibility/not clear-sufficient waters due to water
depth, then the Sellers shall immediately make the Vessel available at a
suitable alternative place near the delivery port without any extra cost from
the Buyers. The Sellers to have the option for divers inspection to take place,
at a place with clear water visibility before the last discharging port,
provided ample notice is given to Buyer for preperation.

 

In the event the
Buyers choose such diver’s inspection, same shall be carried out in the
presence of the Vessel’s Class surveyor (whom to be for Sellers expense) and in
the presence of the Sellers/Buyers representatives without interferring with
the Vessel’s operation. Should any damage by found during such inspection that
will impose a recommendation and/or condition of Class, then:

 

a) In case the
Class imposes a recommendation and/or condition of Class but the Vessel is not
required to be drydocked before her next scheduled drydock, then the Sellers
shall pay the Buyers the direct cost only (excluding drydocking costs) to
repair such damage in a way which is acceptable by the Class and which to be
based on the average of two (2) quotations given by two reputable independent
repair yards at port of delivery or nearby, one at Sellers choice and one at
Buyers choice. The above amount agreed shall be deducted from the balance of
the purchase money at the time of delivery.

 

 

B) In case the
Class requires the Vessel to be drydocked before next drydocking survey, the
Sellers shall drydock the Vessel as per Clause 6 (c) of NSF 1993, which clause
shall apply excepting that tailshaft withdrawl will be done only if Class
requires same to be done, at their expense prior to delivery of the Vessel, and
repair same to Class satisfaction. Delivery date shall be extended pro-rata and
Buyers to have the right to attend such repairs without interfering to Sellers
repairs. Such extension will be given to Buyers for a maximum period of 60
days.

 

In any case of
the above, whether damage is found or not, the cost of the divers inspection
shall be for the Buyers account whilst the cost of the Class society attendance
shall be fore Sellers account. The Class shall at all times be the sole
arbitrator as to whether underwater damage, if any, imposes condition/
recommendation of Class. The decision of Class as to whether underwater damage,
if any, imposes a condition/recommendation of Class shall be final and binding
for both parties.

 

22) TIME CHARTER
ARRANGEMENT AFTER 1ST FEBRUARY 2005

 

In the event the
Vessel is not delivered by 31st January 2005 pursuant to Buyers lifting their
subject as per Clause 17(B), then the Sellers will give the Vessel on a
timecharter on the following terms:

The Sellers will timecharter the Vessel to
the Buyers until the cancelling date 15th April 2005 at a rate of USD 1 per
day. The Buyers will immediately charter back the vessel to Essar Shipping
Limited, Mumbai or its nominee, on Time Charter at a rate of USD 29,000 per day
net. However the Sellers will have a right to deliver the ship as per the
delivery terms at any time between 1st February 2005 to 15th April 2005. Such
hire is payable 15 days in advance. Otherwise standard TC terms to apply. It is
understood that the Charter Party will not include an offhire clause (ie:
whatever might happen Buyers cannot be put off-hire). Also Buyers will not be
liable for any claim (such as for pollution, disbursement accounts, unpaid
expenses of any nature).

In case Buyers
fail to take delivery of the vessel in accordance with this agreement, the
total amount paid under this charter by Sellers hall be returned to them by
Buyers immediately without any contention and this will be guaranteed by Top
Tankers Inc., the NASDAQ listed entity.

 

	
  For the Sellers

  	
   

  	
  For the Buyers

  
	
   

  	
   

  	
   

  
	
  /s/ Rajeev Nayyer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RAJEEV NAYYER

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

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