Document:

Exhibit
10.5

 

	
   

   

  MEMORANDUM OF AGREEMENT

   

   

   

  Dated: 3  June 2010

  	
   

  	
  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.

  

 

VANDERLIN MARITIME INC.

hereinafter called the
Sellers, have agreed to sell, and

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

hereinafter called the
Buyers, have agreed to buy

 

Name: Hull
No H-4016 being a 35,000 dwt Handysize Bulkcarrier

 

Classification
Society/Class: American Bureau of Shipping

 

Built: Under
Construction By: SPP Shipbuilding Co., Ltd
the ‘Builder’

 

Flag: To be
nominated Place of Registration: To be
nominated

 

Call Sign: N/A                Grt/Nrt:

 

Register Number: N/A

 

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

 

Definitions

 

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

 

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

 

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

 

‘Shipbuilding Contract’ means the Shipbuilding Contract
dated 9th May 2007 in respect of the Vessel, being attached hereto as Appendix
I.

 

‘Specifications’ means the Specifications as described in
the Shipbuilding Contract.

 

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

 

2.             Deposit

 

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

 

 

3.             Payment

 

The balance of the Purchase Price
shall be positioned by the Buyers or their Bankers in a suspense account with a
Bank nominated by the Sellers in London or Monaco or Switzerland (non Eurozone)
no later than three (3) New York banking days prior to the “Delivery Date”
as defined in the Shipbuilding Contract. At the time of remittance of the said
funds to the said suspense account the Buyers or their bankers shall advise the
Sellers bankers (via an MT199 message or otherwise) of the names of the persons
authorised to release the relevant funds to the Sellers at the time of
delivery. Any excess amount remaining in the said suspense account after
payment of the Purchase Price for the Vessel and any additional amounts shall
be remitted back to the Buyers.

 

On delivery of the Vessel from the
Sellers to the Buyers and execution by the Sellers and the Buyers of a Protocol
of Delivery and Acceptance, the Buyers shall pay to the Sellers the Deposit
less all interest accrued thereon, together with the balance of the purchase
price plus any additional amounts payable for bunkers and lubricating oils on
board the Vessel at the time of delivery.

 

4.             Inspections

 

5.             Notices, time and place
of delivery 

 

a)                                      The Sellers shall keep the Buyers regularly
posted with regards to the actual delivery date of the
Vessel and and shall give the
Buyers 30, 20, 10, and 5 days approximate notice of delivery and 1 days definite notice of delivery. When
the Vessel is 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 of the  Vessel. Sellers to keep Buyers informed about the
Vessel’s building schedule and progress of all major construction stages, such
as Steel Cutting, Reel Laying, Launching and delivery date, until the Vessel is
complete.

 

The Buyers hereby confirm that the delivery of the vessel by Sellers under this agreement
will take place simultaneously with delivery of the Vessel to the Sellers by
the Builder. Sellers will deliver the Vessel unregistered.

 

b)                                     The Vessel
shall be delivered and taken over safely afloat at a safe and accessible berth
or anchorage alongside the pier or at anchorage of SPP
Shipbuilding Co.,Ltd.

 

 

in the Sellers’ option.

 

Expected time of delivery: 6th May 2011

 

Date of cancelling (see
Clauses 5 c), 6 b) (iii) and 14): 30th
August 2011

 

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 

 

 

7.             Spares/bunkers, etc.

 

The
Sellers shall deliver the Vessel to the Buyers with everything belonging to her
on board and on shore and on order and with
all those parties mentioned in the Shipbuilding Specifications except Grab
Accessories which is an Owners Supply Item.. All spare parts and
spare equipment including spare tail-end shaft(s) and/or spare
propeller(s)/propeller blade(s), if any, belonging to the Vessel, 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 if same supplied by the Builder under the
Shipbuilding Contract. The radio installation and navigational equipment
shall be included in the sale without extra payment. Unused stores and
provisions shall be included in the sale and be taken over by the Buyers
without extra payment if same supplied by
the Builder under the Shipbuilding Contract and Specifications.

 

 

Upon
contract signing or as soon as possible thereafter Sellers to provide copies of
all plans/drawings of this Vessel such as capacity plan/midship section
plan/general arrangement pla/stability booklet/loading manual, mooring plan,
accommodation plan and others essential to the Buyers for Chartering and
operation purposes provided same available from the Builder at present or, if
otherwise, whenever available by the Builder. 

 

Buyers to
take over and pay extra for all luboils (in storage tanks & sealed
drums) and pay at Sellers’ net paid prices as evidenced by invoices. Bunkers
which are onboard the vessel at the time of delivery to be taken over by
Buyers’ at Sellers’ net paid prices as evidenced by invoices from the Shipyard
to the Sellers. Luboils necessary for filling up the Vessel’s systems including
the main engine and sump tank, are for Sellers’ account. 

 

Any
changes to Rules and Regulations governing the construction of the vessel
which come into effect following the execution of this Agreement shall not be
applied subject to Buyers request and at their expense.

 

8.             Documentation (See Addendum No 1)

 

The place of closing: London or Piraeus in Sellers
option

 

In exchange for payment of
the full purchase price along with any other
payments called for in accordance with the Memorandum of Agreement, the Sellers
shall furnish the Buyers delivery
documents as reasonably required by the Buyers for the registration of the
Vessel which to be advised by the Buyers and to be incorporated in an Addnedum
to the Memorandum of Agreement.

 

 

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

 

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

 

9.             Encumbrances

 

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

 

10.           Taxes, etc.

 

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

 

11.           Condition on delivery

 

The Vessel with everything
belonging to her shall be at the Sellers’ risk and expense until she is
delivered to the Buyers, but subject to the terms and conditions of this
Agreement she shall be delivered and
taken over in brand new condition as is at
the time of delivery of the Vessel to the Sellers by the Builders and always in
accordance with the terms of this Agreement and the Shipbuilding Contract and
Specification reviewed.

 

Furthermore,
the Vessel shall be delivered with her class maintained without any condition/recommendation*, save in
respect of classification society requirements which customarily apply to newly
built vessels and which can only be satisfied post delivery, free
of damage affecting the Vessel’s class, and with all her classification certificates and national and international trading certificates issued,  and valid for a minimum period customarily issued by class or
the relevant authorities at the time of delivery provided that the Buyers shall
accept the interim/shorterm/provisional certificates as issued by the class and
or other applicable authorities at the time of delivery from the Builder.
Buyers shall deal directly with class for full term certificates after delivery
of the Vessel.

 

12.           Name/markings

 

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

 

 

13.           Buyers’ default

 

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

 

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

 

14.           Sellers’ default

 

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

 

Should the Sellers fail to give
Notice of Readiness by the date stipulated in line 61 or fail to be ready to validly
complete a legal transfer as aforesaid they shall make due compensation to the Buyers
for their loss and for all expenses together with interest if their failure is due
to proven negligence and whether or not the Buyers cancel this Agreement.

 

15.           Buyers’ representatives

 

Buyers have the right to have at
their risk and expense one (1) representatives/member of the crew for familiarization
purposes only during normal working hours of the Shipyard, twenty one (21) days
prior to the estimated date of delivery or from the time of sea trials
whichever is the earlier. The Buyer’ representatives/crew shall not interfere
whatsoever with the Vessel’s operation/sea trial or building schedule and shall
sign all necessary letters 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, failing which the
decision of the single arbitrator appointed shall apply. If two arbitrators properly
appointed shall not agree they shall appoint an umpire whose decision shall be final.

 

 

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

 

18) The Vessel is subject to a
Charter Party to Cargill. The Sellers agree to exercise their best endeavours
to receive Charterers’ (“Cargill”) approval to transfer by novation or
otherwise of the charter for the Vessel to the Buyers of the existing charter
agreement with Cargill which to be attached to this agreement. The Vessel is
chartered for 46/50 months (plus/minus 15 days) from the date of delivery of
the Vessel from the Shipyard with hire payable 15 days in advance. The charter
rate payable will be a direct pass through of the BHSI at 115% with the same
settlement system per month of the last ten trading sessions which is the
average thereof.

 

The following wording to be used
in any novation agreement under the trading exclusions if same not already in
the charterparty: “Any country or area that it blacklisted by or to which the
vessel is prohibited to trade by the U.N. and/or U.S.A and/or vessel’s ‘flag
state”

 

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

 

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

 

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

 

Clauses 22 - 25 inclusive shall
be deemed incorporated and inconsidered an integral part of this Agreement.

 

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

 

 

RIDER
CLAUSES TO HULL NO H-4016 

MOA DATED 3rd JUNE 2010

 

Clause 22

 

The Sellers are buying the
Vessel as a resale from the original Buyer under the Shipbuilding Contract (the
‘Original Buyer’).

 

Supervision during
construction of the vessel to be carried out for Sellers by the Original Buyer.
Buyers are to have the right to place up to one observer per two Vessels at SPP
Shipbuilding Co., Ltd shipyard immediately after the Keel Laying of the Vessel.
This observer is to form part of the Original Buyers supervision team but all
costs connected with their stay at the shipyard are to be for Buyers’ account.
This observer shall have no authority in the construction, drawing approval and
shall only liaise/communicate with the Original Buyers supervision team and not
the shipyard directly. Office facilities with phone, fax, email to be provided
the Original Buyers within the Original Buyers supervision team site office,
all direct costs associated with Buyers observers use of these office to be for
Buyers account.

 

The Buyers obvserver shall
not have by direct contact with the Shipyard whatsoever. Any questions or
comments shall be addressed in writing to the Original Buyers supervision team
representatives at the Shipyard who will receive all written comments/questions
from the Buyers. The original Buyers supervision team representatives shall
forward all of the Buyers comments/questions to the Shipyard but the Shipyard
is not obliged to comply with all demands. This paragraph is fundamental for
this Contract.

 

If for any reason whatsoever
the conduct of the Buyers’ observer is not satisfactory or such observer act in
contravention of the provisions herein the Sellers may request the substitution
of such observer and the Buyers must comply with such request.

 

Clause 23

 

On or prior to the delivery
of the Vessel under this Agreement, the Sellers undertake to procure that the
Original Buyer shall assign to the Buyers all their rights, interest and title
a) under the relevant article of the Shipbuilding Contract dealing with the
Vessel’s so called warranty of quality, b) in any claims made thereunder
outstanding at the time of such assignment and c) under any other suppliers’ or
equipment manufacturers’ warranties that are available to the Original Buyer,
such assignments being subject to the consent of the Builder and such other
suppliers. The assignment of the rights described above, shall be effected by
a) the Original Buyer executing a deed in a form acceptable to the Buyers and
b) the Builder, or such other relevant supplier or manufacturer countersigning
a notice of assignment again in a form acceptable to the Buyers, such notice to
be duly executed, provided, however, that in the event that the Builder or any
supplier or manufacturer does not consent to the assignment of the relevant
warranty, the Sellers hereby further undertake to procure that the Original
Buyer shall act as the agent of the Buyers in raising, handling and closing any
claims that the Buyers may want to raise under the said warranty always
following instructions of the Buyers. The Sellers shall arrange that the
Original Buyer shall not refuse any request by the Buyers to raise a claim
under the said warranty of quality on the understanding that neither the
Sellers or the Original Buyer shall be

 

1

 

RIDER
CLAUSES TO HULL NO H-4016 

MOA DATED 3rd JUNE 2010

 

liable to meet a claim if
there is a failure to recover the same from the Builder, or, as the case may
be, the relevant supplier or manufacturer, provided, however that the Sellers
shall procure that the Original Buyer, will on the request of the Buyers,
commence legal proceedings against the Builder, or the supplier or manufacturer
in connection with any disputed or non-recoverable claim made under the
relevant warranty. The Original Buyer will draft the deed of assignment which
is subject to Buyers approval.

 

If the Vessel is not built
in accordance to the specifications and the Shipbuilding Contract then the
Sellers will transfer to the Buyers the benefit of any resultant liquidated
damages as per the Shipbuilding Contract Article III - Adjustment of
Contract Price.

 

The Vessel shall be
delivered to the Buyers only once she is in all respects ready in accordance
with the Shipbuilding Contract and specification. However, the Buyers shall
accept the vessel if the Original Buyer is obliged to take delivery of the
Vessel under the Shipbuilding Contract Article III, always with the
provision that any liquidated damages are transferred to the benefit of the
Buyers.

 

Clause 24

 

The Vessel is to be
delivered with Buyer’s name/funnel markings/port of registry.

 

The Sellers undertake that
the following date of this Agreement and until delivery of the Vessel to the
Buyers under this Agreement, they will not, and that they will procure that the
Original Buyer will not without the previous written consent of the Buyers, a)
agree any amendments, supplements or changes whatsoever to the Shipbuilding
Contract, the Specifications or any other document relating to the construction
of the Vessel; b) release or, waive any breach of, the Builder from any of the
Builder’s obligations under the Shipbuilding Contract, and c) terminate the
Shipbuilding Contract for any reason whatsoever.

 

However, in case of
questions arise which may result in amendments, supplements or changes
whatsoever to the Shipbuilding Contract the Sellers are to notify the Buyers in
writing thereof. The Buyers shall within seven (7) days after receipt of
such written notice the Sellers of their approval or comments thereon, if any,
Should the Buyers fail to notify the Sellers of their approval or comments
within seven (7) days then the Sellers to be at their liberty to make
their own decisions thereon.

 

Clause 26

 

The Buyers have received and
approved the Vessel’s Specifications, Makers List and the Shipbuilding Contract
and therefore this sale is outright and definite, subject only to the terms and
conditions of this Agreement.

 

2

 

RIDER
CLAUSES TO HULL NO H-4016

MOA
DATED 3rd JUNE 2010

 

	
  For the Buyers

  	
   

  	
  For the Sellers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Robert Gerald Buchanan

  	
   

  	
  /s/ Achilleas Stergiou

  
	
  Robert Gerald Buchanan

  	
   

  	
  Achilleas Stergiou

  
	
  President

  	
   

  	
  President

  

 

3Exhibit
10.6

 

	
  MEMORANDUM OF AGREEMENT

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

  Code-name

  SALEFORM 1993

  Revised 1966, 1983 and
  1986/87.

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  Dated: 3
  June 2010

  
	
   

  

 

SEAFARER
SHIPPING & TRADING COMPANY

hereinafter
called the Sellers, have agreed to sell, and

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

hereinafter
called the Buyers, have agreed to buy

 

Name: Hull No H-4019 being a 35,000 dwt Handysize
Bulkcarrier

 

Classification
Society/Class:  American Bureau of
Shipping

 

Built: Under Construction  By:  SPP
Shipbuilding Co.,Ltd the ‘Builder’

 

Flag: To be nominated  Place
of Registration:  To be nominated

 

Call
Sign:  N/A  Grl/Nrt:

 

Register
Number:  N/A

 

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

 

Definitions

 

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

 

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

 

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

 

‘Shipbuilding
Contract’ means the Shipbuilding Contract dated 9th May 2007 in respect of
the Vessel, being attached hereto as Appendix I.

 

‘Specifications’
means the Specifications as described in the Shipbuilding Contract.

 

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

 

2.             Deposit

 

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

 

 

3.             Payment

 

The balance of the Purchase Price
shall be positioned by the Buyers or their Bankers in a suspense account with a
Bank nominated by the Sellers in London or Monaco or Switzerland (non Eurozone)
no later than three (3) New York banking days prior to the “Delivery Date”
as defined in the Shipbuilding Contract. At the time of remittance of the said
funds to the said suspense account the Buyers or their bankers shall advise the
Sellers bankers (via an MT199 message or otherwise) of the names of the persons
authorised to release the relevant funds to the Sellers at the time of
delivery. Any excess amount remaining in the said suspense account after
payment of the Purchase Price for the Vessel and any additional amounts shall
be remitted back to the Buyers.

 

On delivery of the Vessel from the
Sellers to the Buyers and execution by the Sellers and the Buyers of a Protocol
of Delivery and Acceptance, the Buyers shall pay to the Sellers the Deposit
less all interest accrued thereon, together with the balance of the purchase
price plus any additional amounts payable for bunkers and lubricating oils on
board the Vessel at the time of delivery.

 

4.             Inspections

 

5.             Notices, time and place of delivery

 

a)             The
Sellers shall keep the Buyers regularly
posted with regards to the actual delivery date of the
Vessel and and shall give the Buyers with 30, 20, 10, and 5 days approximate notice of delivery and 1 days definite notice of delivery.  When
the Vessel is 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 of the Vessel. Sellers to keep Buyers informed about the Vessel’s building
schedule and progress of all major construction stages, such as Steel Cutting,
Keel Laying, Launching and delivery date, until the Vessel is complete.

 

The Buyers hereby confirm that the
delivery of the Vessel by Sellers under this agreement will take place
simultaneously with delivery of the Vessel to the Sellers by the Builder.
Sellers will deliver the Vessel unregistered.

 

b)            The Vessel
shall be delivered and taken over safely afloat at a safe and accessible berth
or anchorage alongside the pier or at anchorage of SPP Shipbuilding Co., Ltd.

 

 

in the Sellers’ option.

 

Expected time of delivery: 30th September 2011

 

Date of cancelling (see
Clauses 5 c), 6 b) (iii) and 14): 18th
December 2011

 

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

 

 

7.             Spares/bunkers, etc.

 

The
Sellers shall deliver the Vessel to the Buyers with everything belonging to her
on board and on shore and on order and with
all those parties mentioned in the Shipbuilding Specifications except Grab
Accessories which is an Owners Supply Item. All spare parts and
spare equipment including spare tail-end shaft(s) and/or spare
propeller(s)/propeller blade(s), if any, belonging to the Vessel, 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 if same supplied by the Builder under the
Shipbuilding Contract. The radio installation and navigational
equipment shall be included in the sale without extra payment. Unused stores
and provisions shall be included in the sale and be taken over by the Buyers
without extra payment if same supplied by
the Builder under the Shipbuilding Contract and Specifications.

 

 

Upon
contract signing or as soon as possible thereafter Sellers to provide copies of
all plans/drawings of this Vessel such as capacity plan/midship section
plan/general arrangement pla/stability booklet/loading manual, mooring plan, accommodation
plan and others essential to the Buyers for Chartering and operation purposes
provided same available from the Builder at present or, if otherwise, whenever
available by the Builder.

 

Buyers to take over and pay extra for luboils (in storage tanks
and sealed drums) and pay the current net market price (excluding barging
expenses) at the port and date of delivery of the Vessel. Bunkers which onboard
the Vessel at the time of delivery to be taken over by Buyers at Sellers’ net
paid prices as evidenced by invoices from the Shipyard to Sellers. Luboils
necessary for fillinf up the Vessel’s systems including the main engine and
sump tank,  are for Sellers Account.
Notwithstanding the foregoing and subject to the approval of the Builders, the
Buyers to have the option to supply lubricating oiols and greases necessary for
the launching and the sea trials of the Vessel at the Shipyard prior to the
time of the launching and the sea trials, and the Sellers shall compensate the
Buyers upon delivery of the Vessel the cost of quantities of lubricating oils
and greases consumed during the sea trial at the original purchase price. In
measuring the consumed quantity, lubricating oils and greases remaining in the
main engine, other machinery and their pipes stern tube and the like, shall be
excluded. The quantity of lubricating oils and greases supplied by the Buyers
shall be in accordance with the instructions of the Sellers.

 

8.             Documentation
(See Addendum No 1)

 

The
place of closing: London
or Piraeus (in Sellers option)

 

In
exchange for payment of the full purchase
price along with any other payments called for in accordance with the
Memorandum of Agreement, the Sellers shall furnish the Buyers delivery documents as reasonably required by the
Buyers for the registration of the Vessel which to be advised by the Buyers and
to be incorporated in an Addnedum to the Memorandum of Agreement.

 

 

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

 

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

 

9.             Encumbrances

 

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

 

10.           Taxes, etc.

 

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

 

11.           Condition on delivery

 

The Vessel with everything
belonging to her shall be at the Sellers’ risk and expense until she is
delivered to the Buyers, but subject to the terms and conditions of this
Agreement she shall be delivered and
taken over in brand new condition as is at
the time of delivery of the Vessel to the Sellers by the Builders and always in
accordance with the terms of this Agreement and the Shipbuilding Contract and
Specification reviewed.

 

Furthermore,
the Vessel shall be delivered with her class maintained without any condition/recommendation*, save in
respect of classification society requirements which customarily apply to newly
built vessels and which can only be satisfied post delivery, free
of damage affecting the Vessel’s class, and with all her classification certificates and
national and international trading certificates
issued, and valid for a minimum period customarily issued by class or
the relevant authorities at the time of delivery provided that the Buyers shall
accept the interim/shorterm/provisional certificates as issued by the class and
or other applicable authorities at the time of delivery from the Builder.
Buyers shall deal directly with class for full term certificates after delivery
of the Vessel.

 

12.           Name/markings

 

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

 

 

13.           Buyers’default

 

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

 

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

 

14.           Sellers’default

 

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

 

Should
the Sellers fail to give Notice of Readiness by the date stipulated in line 61
or fail to be ready to validly complete a legal transfer as aforesaid they
shall make due compensation to the Buyers for their loss and for all expenses
together with interest if their failure is due to proven negligence and whether
or not the Buyers cancel this Agreement.

 

15.           Buyers’
representatives

 

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.

 

 

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

 

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

 

The following wording to be used in any novation agreement
under the trading exclusions if same not already in the charterparty: “Any
country or area that is  blacklisted by or to which the vessel is prohibited
to trade by the U.N. and/or U.S.A and/or vessel’s flag state”

 

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

 

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

 

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

 

Clauses 22 - 25 inclusive shall be deemed incorporated and
considered an integral part of this Agreement.

 

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

 

 

RIDER CLAUSES TO HULL NO H-4019

MOA DATED 3rd JUNE 2010

 

Clause 22

 

The Sellers are buying the
Vessel as a resale from the original Buyer under the Shipbuilding Contract (the
‘Original Buyer’).

 

Supervision during
construction of the vessel to be carried out for Sellers by the Original Buyer.
Buyers are to have the right to place up to one observer per two Vessels at SPP
Shipbuilding Co., Ltd shipyard immediately after the Keel Laying of the Vessel.
This observer is to form part of the Original Buyers supervision team but all
costs connected with their stay at the shipyard are to be for Buyers’ account.
This observer shall have no authority in the construction, drawing approval and
shall only liaise/communicate with the Original Buyers supervision team and not
the shipyard directly. Office facilities with phone, fax, email to be provided
the Original Buyers within the Original Buyers supervision team site office,
all direct costs associated with Buyers observers use of these office to be for
Buyers account.

 

The Buyers obvserver shall
not have by direct contact with the Shipyard whatsoever. Any questions or
comments shall be addressed in writing to the Original Buyers supervision team
representatives at the Shipyard who will receive all written comments/questions
from the Buyers. The original Buyers supervision team representatives shall
forward all of the Buyers comments/questions to the Shipyard but the Shipyard
is not obliged to comply with all demands. This paragraph is fundamental for
this Contract.

 

If for any reason whatsoever
the conduct of the Buyers’ observer is not satisfactory or such observer act in
contravention of the provisions herein the Sellers may request the substitution
of such observer and the Buyers must comply with such request.

 

Clause 23

 

On or prior to the delivery
of the Vessel under this Agreement, the Sellers undertake to procure that the
Original Buyer shall assign to the Buyers all their rights, interest and title
a) under the relevant article of the Shipbuilding Contract dealing with the
Vessel’s so called warranty of quality, b) in any claims made thereunder
outstanding at the time of such assignment and c) under any other suppliers’ or
equipment manufacturers’ warranties that are available to the Original Buyer,
such assignments being subject to the consent of the Builder and such other
suppliers. The assignment of the rights described above, shall be effected by
a) the Original Buyer executing a deed in a form acceptable to the Buyers and
b) the Builder, or such other relevant supplier or manufacturer countersigning
a notice of assignment again in a form acceptable to the Buyers, such notice to
be duly executed, provided, however, that in the event that the Builder or any
supplier or manufacturer does not consent to the assignment of the relevant
warranty, the Sellers hereby further undertake to procure that the Original
Buyer shall act as the agent of the Buyers in raising, handling and closing any
claims that the Buyers may want to raise under the said warranty always
following instructions of the Buyers. The Sellers shall arrange that the
Original Buyer shall not refuse any request by the Buyers to raise a claim
under the said warranty of quality on the understanding that neither the
Sellers or the Original Buyer shall be

 

1

 

RIDER CLAUSES TO HULL NO H-4019

MOA DATED 3rd JUNE 2010

 

liable to meet a claim if
there is a failure to recover the same from the Builder, or, as the case may
be, the relevant supplier or manufacturer, provided, however that the Sellers
shall procure that the Original Buyer, will on the request of the Buyers,
commence legal proceedings against the Builder, or the supplier or manufacturer
in connection with any disputed or non-recoverable claim made under the
relevant warranty. The Original Buyer will draft the deed of assignment which
is subject to Buyers approval.

 

If the Vessel is not built
in accordance to the specifications and the Shipbuilding Contract then the
Sellers will transfer to the Buyers the benefit of any resultant liquidated
damages as per the Shipbuilding Contract Article III - Adjustment of
Contract Price.

 

The Vessel shall be
delivered to the Buyers only once she is in all respects ready in accordance
with the Shipbuilding Contract and specification. However, the Buyers shall accept
the vessel if the Original Buyer is obliged to take delivery of the Vessel
under the Shipbuilding Contract Article III, always with the provision
that any liquidated damages are transferred to the benefit of the Buyers.

 

Clause 24

 

The Vessel is to be delivered
with Buyer’s name/funnel markings/port of registry.

 

The Sellers undertake that
the following date of this Agreement and until delivery of the Vessel to the
Buyers under this Agreement, they will not, and that they will procure that the
Original Buyer will not without the previous written consent of the Buyers, a)
agree any amendments, supplements or changes whatsoever to the Shipbuilding
Contract, the Specifications or any other document relating to the construction
of the Vessel; b) release or, waive any breach of, the Builder from any of the
Builder’s obligations under the Shipbuilding Contract, and c) terminate the
Shipbuilding Contract for any reason whatsoever.

 

However, in case of
questions arise which may result in amendments, supplements or changes
whatsoever to the Shipbuilding Contract the Sellers are to notify the Buyers in
writing thereof. The Buyers shall within seven (7) days after receipt of
such written notice the Sellers of their approval or comments thereon, if any,
Should the Buyers fail to notify the Sellers of their approval or comments
within seven (7) days then the Sellers to be at their liberty to make
their own decisions thereon.

 

Clause 26

 

The Buyers have received and
approved the Vessel’s Specifications, Makers List and the Shipbuilding Contract
and therefore this sale is outright and definite, subject only to the terms and
conditions of this Agreement.

 

2

 

RIDER CLAUSES TO HULL NO H-4019

MOA DATED 3rd JUNE 2010

 

	
  For the Buyers

  	
   

  	
  For the Sellers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Robert Gerald-Buchanan

  	
   

  	
  /s/ Achilleas Stergiou

  
	
  Robert Gerald-Buchanan

  	
   

  	
  Achilleas Stergiou

  
	
  President

  	
   

  	
  President

  

 

3

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