Document:

d1267970_ex4-17.htm

Exhibit 4.17

	
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:  19th December 2011

	  
	  	  

Messrs Reederei Santa Containerschiffe GmbH & Co. KG, having their registered address at Lutterstraße 17, 33617 Bielefeld, Germany

hereinafter called the Sellers, have agreed to sell, and

Messrs Rongerik Shipping Company Inc., having their registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960, whose performance is to be guaranteed by Diana Containerships Inc., having their registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960

hereinafter called the Buyers, have agreed to buy

Name: M.V. Cap San Marco

Classification Society/Class:  Germanischer Lloyd + 100A5E, with freeboard 3.101m

1W SOLAS-II-2, Reg. 19 C2P61 "Containership" + MC E AUT

Built:  2001                                                By:  Samsung Heavy Industries, Koje-City, Kyungnam/South Korea

Flag: Liberia                                                      Place of Registration:  Monrovia

Call Sign:  ELZA9                                    Grt/Nrt: GT / NT: 40085 / 24319

Register IMO Number: 9215672

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

Definitions

"Banking days" are days on which banks are open in New York, Piraeus, London and Hamburg (Saturday, Sunday and holidays excepted). 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 modem form of written communication.

 

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

 

1.           Purchase Price USD 33,000,000.00

(in words: United States Dollars thirtythree million) cash

2.           Deposit

 

As security for the correct fulfillment of this Agreement the Buyers shall pay a deposit of 10 % (ten per cent) of the Purchase Price within 3 (three)                  banking days from the date of this Agreement and the time charter-party on the BOXTIME 2004 Form has been signed by e-mail or fax by both parties whichever is later. This deposit shall be placed with Deutsche Schiffsbank AG, Domtstraße 18, 20095 Hamburg; PIC: Uwe Loeding; telephone: +49 40 37699-621; telefax: +49 40 37699-188; e-mail: uwe.loeding@schiffsbank.com; Account No. to be advised,

and held by them in a joint interest bearing account for the joint benefit of 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 90 percent balance of the said Purchase Price together with luboil money shall be paid against exchange of agreed delivery documentation via a conditional payment under the name of the Buyers at Sellers' Bank prior to the anticipated delivery in full free of bank charges to Deutsche Schiffsbank AG, Domstraße 18, 20095 Hamburg; Account No. to be advised,

on delivery of the Vessel, but not later than 3 (three) 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. The sum of the full purchase price (i.e. including the deposit) has to be released to the Sellers upon presentation of a signed copy of the Protocol of Delivery.

 

4.           Inspections

 

	
a)*

	
The Buyers have inspected and accepted the Vessel's classification records. The Buyers have also inspected the Vessel at/in Cartagena, Colombia ______________ on 11th December 2011

and have accepted the Vessel following this inspection and the sale is outright and definite, subject only to the terms and conditions of this Agreement.

 

	
b)*

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

 

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

 

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

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

 

	
*

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

 

5.           Notices, time and place of delivery

 

	
a)

	
The Sellers shall keep the Buyers well informed of the Vessel's itinerary and the expected date of delivery and shall

provide the Buyers with 25, 21, 14, 7, 5 and 3 days approximate and 1 day definite notice of the date and place of estimated time of arrival at the

intended place of drydocking/underwater inspection/ delivery. Days to exclude holidays in Germany, Greece, USA, and England. When the Vessel is at the place

of delivery and in every respect physically ready for delivery in accordance with this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.

 

	
b)

	
The Vessel shall be delivered and taken over always safely afloat, free of strikes, free of stowaways alongside at a safe and accessible berth or

anchorage at /in a place within the trading area between East Coast South America and East Coast North America at a port to be mutually agreed, convenient for a smooth delivery for both parties.

 

in-the-Sellers' option.

 

Expected time of delivery: a date between 5th January 2012 and 29th February 2012 in Sellers' option

  

  

  

Date of cancelling (see Clauses 5c), 6 b) (iii) and 14): 29th February 2012 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 7 (seven) running

days of receipt of the notice or of accepting the new date as the new cancelling date. If the Buyers have not declared their option within 7 (seven) running days of receipt of the Sellers' notification or if the Buyers accept the new date, the date proposed in the Sellers' notification shall be deemed to be the new cancelling date and shall be substituted for the cancelling date stipulated in line 61.

 

If this Agreement is maintained with the new cancelling date all other terms and conditions hereof including those contained in Clauses 5 a) and 5 c) shall remain unaltered and in full force and effect. Cancellation or failure to cancel shall be entirely without prejudice to any claim for damages the Buyers may have under Clause 14 for the Vessel not being ready by the original cancelling date.

 

	
d)

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

 

6.             Drydocking/Divers Inspection

 

	
a)**

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

 

	
b)**

	
(i) The Vessel is to be delivered without drydocking. However, the Buyers shall have the right at their expense to arrange for an underwater inspection by a diver approved by the Classification Society prior to the delivery of the Vessel. The Sellers shall at their cost make the Vessel available for such inspection. The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of the Classification Society. The underwater inspection is to be carried out at the port of delivery. In the event that the Sellers know that If the conditions at the port of delivery has poor water visibility, then the diver's inspection shall take place earlier at a port where visibility is suitable , and then are unsuitable for such inspection, the

Sellers will give the Buyers a letter confirming that the Vessel has not touched bottom since the time of the last underwater inspection. shall make the Vessel available at a suitable alternative place near to the delivery

port

 

(ii) If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken, damaged or defective so as to affect the Vessel's class and cause Class to give the vessel a recommendation or condition but does not require the damage to be repaired until next scheduled drydocking, then Sellers shall compensate Buyers by cash settlement Buyers and Sellers shall each obtain a quotation for the repair cost from an Asian Shipyard (excluding the cost of the drydocking) and the average of the two quotations shall be deducted from the purchase price at the time of delivery. unless

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

  

  

  

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

 

c)             if the Vessel is drydocked pursuant to Clause 6 a) or 6 b) above

 

(i)           the Classification Society may require survey of the tailshaft system, the extent of the survey being to the satisfaction of the Classification surveyor. If such survey is not required by the Classification Society, the Buyers shall have the right to require the tailshaft to be drawn and surveyed by the Classification Society, the extent of the survey being in accordance with the Classification Society's rules for tailshaft survey and consistent with the current stage of the Vessel's survey cycle. The Buyers shall declare whether they require the tailshaft to be drawn and surveyed not later than by the completion of the inspection by the Classification Society. The drawing and refitting of the tailshaft shall be arranged by the Sellers. Should any parts of the tailshaft system be condemned or found defective so as to affect the Vessel's class, those parts shall be renewed or made good at the Sellers' expense to the satisfaction of the Classification Society without condition/recommendation*.

 

(ii)           the expenses relating to the survey of the tailshaft system shall be borne by the Buyers unless the Classification Society requires such survey to be carded out, in which case the Sellers shall pay these expenses. The Sellers shall also pay the expenses if the Buyers require the survey and parts of the system are condemned or found defective or broken so as to affect the Vessel's class*.

 

(iii)           the expenses in connection with putting the Vessel in and taking her out of drydock, including the drydock dues and the Classification Society's fees shall be paid by the Sellers if the Classification Society issues any condition/recommendation* as a result of the survey or if it requires survey of the tailshaft system. In all other cases the Buyers shall pay the aforesaid expenses, dues and fees.

 

(iv)           the Buyers' representative shall have the right to be present in the drydock, but without interfering with the work or decisions of the Classification surveyor.

 

(v)           the Buyers shall have the right to have the underwater parts of the Vessel cleaned and painted at their risk and expense without interfering with the Sellers' or the Classification surveyor's work, if any, and without affecting the Vessel's timely delivery. If, however, the Buyers' work in drydock is still in progress when the Sellers have completed the work which the Sellers are required to do, the additional docking time needed to complete the Buyers' work shall be for the Buyers' risk and expense. In the event that the Buyers' work requires such additional time, the Sellers may upon completion of the Sellers' work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and the Buyers shall be obliged to take delivery in accordance with Clause 3, whether the Vessel is in drydock or not and irrespective of Clause 5 b).

 

	
*

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

 

	
**

	
6 a) and 6 b) are alternatives; delete whichever is not applicable.  In the absence of deletions, alternative 6 a) to apply.

 

  

  

  

7.           Spares/bunkers, etc.

 

The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on shore and on order without any extra cost to Buyers. All spare parts and spare equipment including

spare tail end shaft(s) and/or spare

propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or unused, whether on board or not shall become the Buyers' property, but spares on order are to be excluded.  Forwarding charges, if any, shall be for the Buyers' account. The Sellers are not required to replace spare parts including spare tail end shaft(s) and spare propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the property of the Buyers. The radio installation and navigational equipment and GMDSS equipment shall be included in the sale

without extra payment if they are the property of the Sellers. All broached/unbroached Unused stores and provisions shall be

included in the sale and be taken over by the Buyers without extra payment. Included in the sale at no extra cost to Buyers shall be all lashing material onboard as required by the present charterers and the vessel's securing manual, which to be verified by joint survey between the Buyers and the Sellers. The computer loading program to remain onboard free of cost for the Buyers and a copy to be sent to Buyers' office.

 

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):

 

The Buyers shall take over the remaining bunkers and unused lubricating oils in designated storage tanks and/or

sealed drums and pay Sellers' the current net market price substantiated by invoices (excluding barging expenses) at the port and date

of delivery of the Vessel.  Quantities to be jointly surveyed and agreed at least 48 hours prior to delivery. The agreement of the quantities has to consider an agreed allowance for consumption upon physical delivery. Relative invoices to be forwarded to Buyers not later than 10 (ten) banking days prior delivery.

Payment under this Clause shall be made at the same time and place and in the same currency as the Purchase Price. For the avoidance of doubt, during handover the bunkers remaining on board are to remain the property of the Sellers as time-charterers and, although bunkers will be measured and agreed by the respective representatives of the Sellers and the Buyers at the time of delivery, there will be no payment for bunkers on delivery, with the Buyers to buy same upon redelivery from time charter.

8.             Documentation

 

The place of closing: Hamburg at Sellers' office.

 

In exchange for payment of the Purchase Price the Sellers shall furnish the Buyers with delivery documents , namely:

 

	
a)

	
Legal Bill of Sale-in a form recordable in the Republic of the Marshall Islands (the country in which the Buyers are

to register the Vessel), warranting that the Vessel is free from all encumbrances, mortgages and maritime liens or any other debts or claims whatsoever, duly notarially attested and legalized by the consul of such country or other competent authority.

 

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

 

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

 

	
d)

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

 

  

  

  

	
e)

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

 

	
f)

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

 

g) Extract from the public commercial registry of the Sellers and their limited partner accompanied with a free English translation thereof by a reputable law firm from Germany to their accuracy and validity.

 

h) Commercial Invoice for the Vessel and the oils;

 

i) Letter of Undertaking from the Sellers stating that to the best of their knowledge the Vessel is not blacklisted by any state, nation, organisation or governmental body.

 

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.

 

Drafts of such delivery documents to be e-mailed to Buyers' lawyers at least 10 (ten) banking days prior to the expected delivery date.

 

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.

 

Sellers to hand to Buyers' representatives at the time of delivery all manuals relative to main engine/auxiliaries and all other existing manuals/instruction books on board the Vessel and to send as soon as possible thereafter all other manuals and plans relating to the Vessel in Sellers' possession. Buyers can make copies of engine and deck logbooks.

 

Documents to be provided by the Buyers:

 

1. Buyers' Shareholders' and Directors' resolutions approving the purchase of the Vessel and the MoA and appointing relevant attorneys to attend the closing meeting and the physical delivery of the Vessel and to sign all relevant documentation (including but not limited to the MoA, the Protocol of Delivery and Acceptance, the deposit release letter, etc.), duly apostilled by the Republic of the Marshall Islands authorities.

 

2. Power of Attorney empowering the relevant attorneys to attend the closing meeting and the physical delivery of the Vessel and to sign all relevant documentation (including but not limited to the MoA, the Protocol of Delivery and Acceptance, the deposit release letter, etc.), duly apostilled by the Republic of the Marshall Islands authorities.

 

3. Copy of Buyer's Certificate  of Incorporation;

 

4. Buyer's Certificate of Good Standing issued by the Marshall Islands authorities stating that the company is in goodstanding.

 

5. Copies of Buyer's Articles ofAssociation/By-laws;

 

6. Buyer's Certificate of Incumbency issued by the Marshall Islands authorities.

 

  

  

  

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 or claims 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.   Sellers guarantee that to the best of their knowledge the Vessel is not blacklisted by any state, nation, organisation or governmental body.

 

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 substantially the same condition as she was at the time of inspection, fair wear and tear excepted.

 

However, the Vessel shall be delivered with her present class maintained without condition/recommendation", free of average damage affecting the Vessel's class, and with all her continuous survey cycles to be op to date 6 months after time of delivery. All her classification and trading certificates, national and international, as required under her present flag, to be clean and national certificates, as-well as all other certificates the Vessel had at the time of inspection, valid and unextended for a minimum of 6 (six) months at the time of delivery and in particular in full compliance with current IMO/MARPOL/SOLAS/USCG regulations without condition/recommendation by Class or the relevant authorities at the time of delivery.

 

The Cargo cranes 1 and 2 cannot be operated at the time of this Agreement as the Class requested to exchange the rope wheels. Sellers will provide a LOI stating that such exchange of rope wheels will be done after delivery at Sellers/Time-Charterers' time and expense. Fully operated test to take place in presence of the Class.

 

"Inspection" in this Clause 11, shall mean the Buyers' inspection according to Clause 4 a) or 4 b), if applicable, or the Buyers' inspection prior to the signing of this Agreement. If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.

 

	
*

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

 

12.           Name/markings

 

Upon delivery.  After the end of the Time-Charterparty as per Clause 17 below, 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 (three) banking days after Notice of Readiness has been given to make arrangements for the documentation set out in Clause 8. If after Notice of Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not made physically ready again in every respect by the date stipulated in line 61 and new Notice of Readiness given, the Buyers shall retain their option to cancel. In the event that the Buyers elect to cancel this Agreement the deposit together with interest earned shall be released to them immediately.

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

 

15.           Buyers' representatives

 

After this Agreement has been signed by both parties and the deposit has been lodged, the Buyers have the right to place 3 (three) two  representatives on board the Vessel at their sole risk and expense upon up to and including the time of delivery.

arrival-at                      on or about

These representatives are on board for the purpose of familiarisation and in the capacity of observers only, and they shall not interfere in any respect with the operation of the Vessel. The Buyers' representatives shall sign the Sellers' usual P & I 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 Act 1996 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.

 

	
b)*

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

The proceedings shall be conducted in accordance with the rules of the society of Maritime Arbitrators, Inc. New York.

 

	
c)*

	
Any dispute arising out of this Agreement shall be referred to arbitration at                               s,ubject to the procedures applicable there.  The laws of                       shall govern this Agreement.

 

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

 

  

  

  

 

Clause 17 - Charter:

 

The sale is to include the Iime Charter Agreement on BOXTIME 2004 form between Sellers and Buyers from the time of delivery to Buyers for a minimum of 36 (thirty-six) months with +/- 45 days molchopt at US$22,750.00 per day net for the first 12 months, US$22,850.00 per day net for the second 12 months, US$23,250.00 per day net for the third 12 months. (c/p terms to be agreed)

 

Time-Charterers: "Reederei Santa Containerschiffe GmbH & Co. KG". Messrs Dr August Oetker KG to provide Buyers with a 'Letter of Guarantee' which will guarantee the performance of the Time-Charterer.

 

It is understood that no novation agreement to the charterparty will be signed, as Buyers will enter into a new charterparty with the Sellers/Time-Charterers based on an executed BOXTIME 2004.

 

Clause 18 - Confidentiality:

 

All negotiations are to be kept strictly private and confidential between the parties involved, subject however to any disclosure requirements of the U.S. SEC and NASDAQ.  Should however details of the sale become known or reported on the market, neither the Buyers nor the Sellers will have the right to withdraw from the sale or the right to fail to fulfill their obligations under this Agreement.

 

	
_________________________________

Rongerik Shipping Company, Inc.

THE BUYERS

 

	 	
_____________________________

Reederei Santa Containerschiffe GmbH & Co. KG

THE SELLERS

	
 

 

________________________________

Diana Containerships Inc.

as guarantor for the BuyersUnassociated Document

 

Exhibit 4.18

 

 

MEMORANDUM OF AGREEMENT

Singapore Ship Sale Form [SSF2011]

 

Date of Agreement: 9th of January 2012

	
1.  The Sellers:

APL (Bermuda) Ltd, Canon's Court, 22 Victoria Street, Hamilton, HM12, Bermuda

1.(a) Guarantor (optional)*:

 

	
2.  The Buyers or Nominee**:

 

Mejit Shipping Company Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960

 

2 (a) Guarantor (optional)*: Performance is to be Guaranteed by Diana Containerships Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960

 

	
3.    Name of the Vessel: M/V APL Sardonyx

	
4.     IMO No./Official No./Call-Sign:

9077458

 

	
5.  Type, Built Yard, Built Year & GT: Container vessel, Samsung Heavy Industries Co. Ltd, Koje, S. Korea, Blt 1995, 53,519 dwt

 

	
6.  (a) Flag/Port of Registry:

 

Singapore / Singapore

	
7.    Classification Society ("Class"): Det Norske Veritas

 

	  

(b) Bare-beat Registry (if any)

	
8. Purchase Price: USD .30,000,000.00 (Thirty Million United States Dollars)

 

(i)       Deposit (10 % of Purchase Price): USD 3,000,000.00 (Three Million United Stales Dollars)

 

(a)      Payee Bank: DnB Bank ASA, Singapore branch

 

(b)      Value Date: Within three (3) banking days from the date or this Agreement and the time-charterparty have been signed by e-mail or fax by both parties.

 

	
(ii) Balance Purchase Price (Purchase Price less Deposit):  USD 27,000,000.00 (Twenty Seven Million United States Dollars)

+ any extras under Clause 7

 

(a) Payee Bank: Citibank NA New York -  CITIUS33, For account and under: Citibank NA Singapore, Pre-cable advice:

CITISGSG, Favouring: APL (Bermuda) Ltd - Ace.: 0-811864-005, SWIFT MTI03 must be released to Citibank, Singapore (swift code CITISGSG) before 4pm Singapore time on the Value date.

 

	
(iii) Place or Closing: Singapore

 

	
(iv) Daily Cost of Delayed Delivery: 

 

7,500.00 USD

 

	
9.  (i) Physical Inspection (Port and Date):  Felixstowe , 14th of November 2011

 

     (ii) Pre-Delivery Divers inspection (Port): Any prior port to intended delivery

	
10.         Delivery Place (at safe and accessible anchorage or berth in): Singapore-South Japan range incl. full PRC at the option of the Sellers or in Sellers option Rotterdam/Hamburg range including Felixstowe.

 

Delivery Date (Range):9th January 2012 to l 5th of March 2012 in Sellers option 

Cancelling Date: 15th of March 2012 in Buyers option

 

 

 

©2010 Singapore Dore Maritime Foundation

  

  

  

	
Declaration:  It is hereby mutually agreed that this Agreement shall be performed according to the terms and conditions set out herein.  Additional clauses, if any, shall be deemed to be fully incorporated into this Agreement.

	
 

11. Signatures – For and on behalf of:

 

The SELLERS:

(Name/title)

 

/s/

VP STRATEGIC FLEET PROCUREMENT

 

GUARANTOR, if any:

(Name/Title)

	
 

 

 

The BUYERS:

(Name/Title)

 

/s/ Symeon Palios

Director and President

 

 

GUARANTOR, if any:

(Name/Title)

/s/Ioannis Zafirakis

Director, Chief Operating Officer and Secretary

 

*This is an optional clause applicable in instances where either both parties or one of the parties requires to have a guarantor to guarantee the performance of this Agreement. The Guarantor by signing this Agreement irrevocably and unconditionally guarantees the due performance of the relevant party. In such cases, default by a party shall vest the other party with the immediate right to start a single arbitration against both the named party and its guarantor as co-respondents (in accordance with Clause 15 of this Agreement) and thereby to recover damages from the guarantor, who shall be jointly and severally liable with the defaulter.

 

**The Buyers shall have more than one right of nomination provided that the Nominee is nominated latest upon receipt of the 15 days notice to be given under Clause 5 (a) of this Agreement or by such date as may be agreed to by the Sellers and the Buyers, failing which  the right to nominate shall be lost. A three-party addendum to this Agreement recording the novation in favour of the Nominee Buyers shall be entered into by the Buyers, Sellers and Nominee Buyers.

 

 

	
1

	
Whereas it is hereby agreed on this day that the Sellers identified in Box 1 have agreed to sell and the Buyers identified

	
2

	
in Box 2 have agreed to buy, the Vessel with specifications stated in Box 3, 4, 5, 6, 7, for the Purchase Price stated in

	
3

	
Box 8, subject to the following terms and conditions:

	 	 
	
4

	
    1.  Deposit

	 	 
	
5

	
The Buyers shall pay a deposit of 10 per cent of the Purchase Price specified in Box 8 (i) as security for the fulfillment

	
6

	
of this Agreement to the bank nominated by the Sellers in Box 8 (i) (a), with a value date no later than that specified

	
7

	
upon in Box 8 (i) (b) of this Agreement. Notwithstanding that the amount received may be lesser due to bank

	
8

	
remittance charges imposed during the normal course of transfer, such amount shall stand as due fulfillment of the

	
9

	
Buyers obligation to pay the deposit and be held in a joint escrow account of both the Sellers and the Buyers, which

	
10

	
shall be released to the Sellers as part of the Purchase Price in accordance with joint written instructions of the Sellers

	
11

	
and the Buyers. The Sellers are to arrange the opening of the joint escrow account latest by 2 banking days prior to the

	
12

	
Value Date. The Buyers, latest together with their remittance of the Deposit, are to arrange bank-to-bank confirmation

	
13

	
from the remitting bank to the bank specified in Box 8 (i) (a) that the Buyers, and the remitting party if different, are a

	
14

	
known customer of the bank and should it be required by the bank in Box 8 (i) (a), the Buyers will also arrange for the

	
15

	
bank-to-bank confirmation to include the confirmation by the remitting bank that they know the source of funds. Both

	
16

	
Sellers and Buyers shall comply with the anti-money laundering laws and regulations of the country in which the

	
17

	
bank(s) specified in Box 8 are located.

	 	 
	
18

	
Any interest earned on the deposit shall accrue to the Buyers whereas any closing fee/fees charged for holding the

	
19

	
deposit shall be borne equally by the Sellers and the Buyers.

	 	 
	
20

	
    2.  Payment

	 	 
	
21

	
(a) The Buyers shall pay the Balance Purchase Price specified in Box 8 (ii) in full including any extras under Clause 7

	
22

	
free of bank/transfer charges to Sellers' nominated bank account at Sellers' bank stated in Box 8 (ii) (a) upon delivery

	
23

	
of the Vessel. The agreed Purchase Price shall be paid for same day value within 3 full banking days, (being banking

	 	 
	
24

	
days in the place of closing and in the country of the Purchase Price currency) after the Sellers tender the written

	
25

	
notice* of actual readiness of the Vessel for delivery in accordance with Clause 5 (b).

	
26

	
(b) The Buyers may delay to take delivery of the Vessel for up to a maximum of further seven (7) consecutive days

	
27

	
paying to the Sellers the sum specified in Box 8 (iv) per day, or part thereof, as compensation for such delay provided

	
28

	
that the Buyers have declared their intention to take late delivery prior to the expiry of the specified 3 full banking

	
29

	
days. Any such amount due shall be paid at the time and place and in the same currency as the Purchase Price and any

	
30

	
additional amounts due under Clause 7. If such delay exceeds seven (7) consecutive days then the Sellers shall have the

	
31.

	
right to cancel this Agreement and claim damages for their losses incurred.

	 	 
	
32

	
*Throughout this Agreement, a written notice is to mean a registered letter, telex, tele-fax, e-mail or other modern form of written

	
33

	
communication between the Sellers and the Buyers.

	 	 
	
34

	
    3. Inspections*

©2010 Singapore Dore Maritime Foundation

  

  

  

 

	
35

	
(a) The Buyers have physically inspected the Vessel at the place and on the date specified in Box 9 (i) as well as the

	
36

	
Classification records and have accepted the Vessel making the sale outright, subject only to the terms and conditions

	
37

	
of this Agreement.

 

	
38

	
(b) The Seller shall rnake the Vessel available for Physical Inspection as per Box 9(i) hereof.,

 

	
39

	
The Buyers shall undertake-the Physical Inspection ** without undue delay to the Vessel.  Should the Buyers cause

	
40

	
undue-delay, the Sellers shall be compensated-for the losses incurred-by them.  The sale shall become definite and

	
41

	
outright, subject only to the terms and conditions of this Agreement, if the Vessel is accepted by the Buyers after the

	
42

	
inspection and a written notice of acceptance from the Buyers is received by the Sellers with 72 hours after

	
43

	
completion of Physical Inspection of the Vessel.  If the Buyers decline the Vessel or if such notice of acceptance is not

	
44

	
received by the Sellers within the afore-mentioned time, the deposit together with any interest earned shall be

	
45

	
immediately released to the Buyers, whateafter this Agreement shall be null and void.

 

	
46

	
*3 (a) and 3 (b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 3 (a) shall apply.

 

	
47

	
**In the context of this Agreement, Physical Inspection of the Vessel is to mean only inspection of the Vessel physically including

	
48

	
taking photographs without opening up of the Vessel and without cost to the Sellers. The Physical. Inspection to include inspection of

	
49

	
Vessel's Classification records, continuous synopsis record, maintenance records, deck and engine log books and available ballast

	
50

	
spaces.

	 	 
	
51

	
    4.  Condition on Delivery

	 	 
	
52

	
Until the Vessel is delivered and taken over by the Buyers, the Vessel and everything belonging to her shall be at

	
53

	
Sellers' risk and expense, subject to the terms of this Agreement. The Sellers shall deliver the Vessel to the Buyers in

	
54

	
substantially the same condition as the Vessel was at the time of inspection*, with the exception of fair wear and tear,

	
55

	
with present Class maintained free from any outstanding Class conditions and/or recommendations**, free from

	
56

	
damage affecting Vessel's Class, with all Class and trading certificates (both national and international) clean and valid

	
57

	
at the time of delivery. All cargo spaces shall be clean and free of any cargo, subject only to immovable residues. If the

	
58

	
Vessel is not in the same condition as the Vessel was at the time of inspection, the Buyers may reject the Vessel but

	
59

	
only if the difference in condition has a substantial impact upon the Buyers' ability to trade the Vessel. Otherwise, the

	
60

	
Buyers' remedy for differences in condition shall lie in damages

 

	
61

	
The burden of proof as to the condition of the Vessel at the time of inspection shall be on the Buyers.

 

	
62

	
*Inspection shall mean the Buyers' inspection according to 3(a) or 3(b) as applicable. If the Vessel is taken over without

	
63

	
inspection, the date of this Agreement shall be the relevant date.

 

	
64

	
**Any notes in Class reports which are accepted by Class without imposing a condition/recommendation are not to be taken into

	
65

	
account and shall not constitute outstanding Class conditions and/or recommendation within the meaning of this Clause.

 

	
66

	
    5. Notices and Notice of Actual Readiness

 

	
67(a)

	
Prior to the arrival of the Vessel at the Delivery Place specified in Box 10, the Sellers shall provide the Buyers with

	
68

	
30, 15, 7, and 3 days advance written notices to keep the Buyers advised of the estimated date and port of delivery and

	
69

	
of the Vessel's itinerary. Following the tender of any notice, Sellers are to take reasonable steps not to hinder delivery

	
70

	
by the date set out in the notice.

 

	
71

	
(b) Upon the arrival of the Vessel at the Delivery Place and when the Vessel is physically ready in accordance with

	
72

	
Clause 4 for delivery and Sellers have ready all of the Sellers' documents required by Clause 8 (save for the Certificate

	
73

	
of Ownership or equivalent, Class Maintained Certificate, Invoice for Bunkers and Lubricants and the Protocol of

	
74

	
Delivery and Acceptance), the Sellers shall tender a written Notice of Actual Readiness of the Vessel to the Buyers.

	
75

	
Subject only to Clause 2 (b), the Buyers shall take delivery of the Vessel within 3 full banking days after the Sellers

	
76

	
tender such notice.

 

	
77

	
(c) However, if the Vessel becomes an actual; constructive or compromised total loss before delivery, the Sellers incur

	
78

	
no liability under this Agreement, the Buyers arc entitled to the immediate return of the deposit and any interest earned

	
79

	
thereon and thereafter this Agreement shall be null and void.

 

	
80

	
    6.  Pre-Delivery Divers Inspection

 

	
81

	
Prior to delivery, the Sellers shall make the Vessel available to the Buyers for underwater inspection. The Sellers shall

	
82

	
be responsible for ensuring that the port, anchorage or berth chosen for underwater inspection of the Vessel is suitable

	
83

	
and permitting such inspection.

 

	
84

	
(a) The Buyers shall have the right to appoint, at their own expense, a Class approved diver to inspect the Vessel's

	
85

	
underwater parts below the deepest load line including rudder and propeller upon the Vessel's arrival at the port

 

©2010 Singapore Dore Maritime Foundation

  

  

  

 

	
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specified in Box 9(ii). The Sellers shall grant Buyers sufficient daylight hours within which to conduct the said

	
87

	
inspection and Sellers shall be obliged to ensure attendance of the Class surveyor to monitor the said inspection

	
88

	
which may be attended by Buyers and Sellers' representatives without interference to Class and/or the divers.

	
89

	
However, should the Buyers fail to arrange for such inspection then they shall lose the right of such divers

	
90

	
inspection.

 

	
91

	
(i) If any defects are found during underwater inspection including rudder and propeller that shall affect the

	
92

	
Vessel's present Class and the repair of which Class agrees can be deferred to the Vessel's next scheduled

	
93

	
dry-docking, the Buyers' sole remedy shall be the payment by the Sellers of the estimated cost of repair of

	
94

	
such defects only excluding any dry-dock costs, as per the average of the quotations of two reputable repair

	
95

	
yards independent of the Sellers and the Buyers in the delivery area, one to be selected by each party. The said

	
96

	
average amount in respect of the cost of repair shall be deducted from the Purchase Price to be paid to the

	
97

	
Sellers at the time of delivery of the Vessel. The costs of Class attendance and divers fees incurred for the

	
98

	
underwater inspection shall be borne by the Buyers unless damage is found and the Class imposes a

	
99

	
recommendation in which case both costs shall be borne by the Sellers.

 

	
100

	
(ii) If damage is found for which Class requires immediate repair, then Sellers shall repair such damage without

	
101

	
delay prior to delivery. Should the Sellers be required to dry-dock the Vessel to repair such damage, then

	
102

	
Clause 6 (b) shall apply.

 

	
103

	
(b) Where the Sellers are required to dry-dock the Vessel under Clause 6 (a) (ii), the Sellers shall also enable the

	
104

	
inspection of the Vessel's bottom, rudder, propeller, tail shaft and other underwater parts by a surveyor of the

	
105

	
Classification Society to the satisfaction of the Classification Society standards. The Sellers shall be obliged to

	
106

	
rectify any defects found that affect the present Class of the Vessel within the agreed time or if no agreement is

	
107

	
reached then latest within 14 days of such damage being found (and, insofar as necessary, the Cancelling Date

	
108

	
shall be extended to allow the full agreed or 14 days' repair period), failure of which shall enable the Buyers to

	
109

	
cancel the Agreement and recover the deposit together with interest.

 

	
110

	
(i) The Buyers shall bear the cost of the survey of the tail shaft system unless the Classification Society requires

	
111

	
such survey to be carried out, in which case the Sellers shall bear the cost.. The expenses in connection with

	
112

	
putting the Vessel in and taking her out of dry-dock including dry-dock dues and Classification Society's fees

	
113

	
shall be paid by the Sellers if any condition or recommendation, excluding surveyor notes is issued as a result

	
114

	
of the survey. In all other cases Buyers shall pay the aforesaid expenses, dues and fees.

 

	
115

	
(ii) The Buyer shall have the right to place a representative for observation whilst the Vessel is in dry-dock

	
116

	
without interfering with the Classification surveyor's work or decisions, during the Classification Society

	
117

	
inspections.

 

	
118

	
(iii) The Buyers shall have the right to have the underwater parts of the Vessel cleaned and painted at their risk and

	
119

	
expense without interfering with the Classification Society's or the Sellers' work, and without affecting timely

	
120

	
delivery of the Vessel. Upon the completion of the Sellers' work, the Sellers may tender Notice of Actual

	
121

	
Readiness of the Vessel for delivery notwithstanding the non-completion of Buyers' work and

	
122

	
notwithstanding that the Vessel is not at the Delivery Place, upon which the Buyers shall be obliged to take

	
123

	
delivery of the Vessel in accordance with the aforesaid notice. All dry-docking expenses incurred after such

	
124

	
delivery except undocking expenses under Clause 6 (a) (ii) shall be borne by the Buyers.

 

	
125

	
The Classification Society shall be the only entity to determine whether any underwater damage constitutes a condition

	
126

	
of Class, and such determination shall be final and binding on both parties.

 

	
127

	
    7. Spares/ Bunkers & Others

 

	
128

	
The Sellers shall deliver the Vessel to the Buyers with everything belonging to her including all spare parts and spare

	
129

	
equipment on board and on shore except those spare parts that are on order. Any forwarding charges shall be the

	
130

	
Buyers' expense. However, the Sellers are not required to replace any spare parts that are taken out of spare and used

	
131

	
as replacement in the Vessel prior to delivery unless required by Class. The radio installation and navigational

	
132

	
equipment shall be included in the sale, along with all unused stores and provisions without extra payment. Any

	
133

	
crockery, plates, cutlery, linen and other items bearing the Sellers' name, if taken by the Sellers, shall be replaced with

	
134

	
unmarked items. However, the following items shall be excluded without compensation;

 

	
135

	
(a) Items that are on use exclusively in Sellers' Vessel like library, forms etc;

	
136

	
(b) Personal belongings including slop chest of the Vessel captain, officers and crew;

	
137

	
(c) Items on hire;

	
138

	
1.  Oxygen bottles - 6 bottles

	
139

	
2.  Acetylene bottles - 4 bottles

	
140

	
3.  Freon bottles - 3 bottles

	
141

	
4.  Iridium laptop - Model - HP Compaq NX 6320

	
142

	
5.  Reefer Spare parts as per e-mail sent to the Buyers on the 16th of December 2011, 11.32 hours Greek

	
143

	
time...................................

©2010 Singapore Dore Maritime Foundation

  

  

  

 

	
144

	
(d) Others,if any...............................

	
145

	
.....................................

 

	
146

	
The remaining bunkers, unused lubricants of all grades and greases in designated storage tanks (not header tanks) and

	
147

	
unopened drums shall be taken over by the Buyers, on payment of the net price excluding barging expenses paid by the

	
148

	
Sellers at the date of last supply to the Vessel and evidenced by relevant invoices or vouchers; copies of which shall be

	
149

	
made available to the Buyers at the time of delivery. Payment under this Clause shall be made in the same currency

	
150

	
and at the same time and place as the Purchase Price. For avoidance of doubt, during handover the bunkers remaining

	
151

	
onboard are to remain the property of the Sellers as time charterers and, although bunkers will be measured and agreed

	
162

	
by the respective representatives of the Sellers and the Buyers at the time of delivery, there will be no payment for

	
153

	
bunkers on delivery, with the Buyers to buy same hack upon redelivery from time charter.

 

	
154

	
    8.  Documentation

 

	
155

	
(a) As soon as practically possible after the Deposit in Box 8 (i) has been paid in accordance with Clause 1. the Sellers

	
156

	
shall forward the Buyers scanned or photocopies of all requested Plans, Registry, Class, Safety/Trading Certificates

	
157

	
and other documents reasonably required for preparation of Buyers registration and management documentation.

 

	
158

	
(b) At the Place of Closing specified in Box 8 (iii) at the time of delivery the Sellers and the Buyers shall sign and

	
159

	
deliver to each other a signed Protocol of Delivery and Acceptance stating the date, time and place of delivery of the

	
160

	
Vessel from the Sellers to the Buyers.

 

	
151

	
The Sellers shall furnish the Buyers with the following documents (unless otherwise specified all to be originals in

	
162

	
English or with official English translations) in exchange for payment of the full Purchase Price of the Vessel:

 

	
163

	
(i) Two (2) One (1) Bills of Sale to be notarially attested and then legalized by the appropriate authorities as

	
164

	
required by the Buyers' incoming flag specifying that the Vessel is free from all encumbrances as set out in Clause

	
165

	
9(a) of this Agreement. The notarial certificate is to confirm the identity of the signatory, his/her ability to bind the

	
166

	
Sellers and the authenticity of the signature.

 

	
167

	
(ii) Extract of the Resolutions of the Sellers' Board of Directors and Shareholders meetings authorizing the sale

	
168

	
and transfer of the Vessel pursuant to this Agreement and appointing persons to represent the Sellers in connection

	
169

	
with the sale of the Vessel and the execution of Bills of Sale and any other documents in connection with the sale of

	
170

	
the Vessel including the issuance of a Power of Attorney. Such Resolutions are to be notarially attested and then

	
171

	
legalized by the appropriate authorities if required by the Buyers' incoming flag. The notarial certificate is to confirm

	
172

	
the identity of the signatory, his/her ability to bind the Sellers and the authenticity of the signature.

 

	
173

	
(iii) Power of Attorney issued by the Sellers authorizing their named representative(s) to effect the sale and

	
174

	
transfer of the Vessel to the Buyers, pursuant to this Agreement and carry out any delivery/closing formalities

	
175

	
including receiving the Deposit and the Balance Purchase Price or any other amounts pursuant to this Agreement.

	
176

	
Such Power of Attorney is to be notarially attested and then legalized by the appropriate authorities if required by the

	
177

	
Buyers' incoming flag. The notarial certificate is to confirm the identity of the signatory, his/her ability to bind the

	
178

	
Sellers and the authenticity of the signature.

 

	
179

	
(iv) One (1) Certificate of Ownership or equivalent, dated on the date of Vessel's delivery or such other date as the

	
180

	
parties may agree, issued by the competent authorities showing that the Vessel is registered in the ownership of the

	
181

	
Sellers and is free from registered mortgages and encumbrances.

 

	
182

	
(v) A certified true copy of the Sellers' constitutive documents.

 

	
183

	
(vi) A current Certificate of Good Standing or Equivalent.

 

	
184

	
(vii) Three (3) Commercial Invoices setting out the main particulars of the Vessel and the Purchase Price of the

	
185

	
Vessel.

 

	
186

	
(viii) One (1) Commercial Invoice setting out the particulars and cost of bunkers and lubricants remaining on board

	
187

	
together with copies of the respective vouchers.

 

	
188

	
(ix) Certificate of Deletion or in lieu thereof, a Letter of Undertaking to provide the Certificate of Deletion and

	
189

	
closed CSR from the present Ship Registry within 30 days from the date of delivery.

 

	
190

	
(x) Letter from the Sellers confirming to certify to the best of their knowledge at the time of delivery that the Vessel

	
191

	
is free from all encumbrances, charters, mortgages, maritime liens, writs (save where security has been

	
192

	
furnished), port state and other administrative detentions, stowaways, trading commitments and any other debts

	
193

	
whatsoever. The Seller shall indemnify the and undertaking to indemnify fully Buyers against all consequences

	
194

	
of any claims against the Buyers that may arise due to claims against the Vessel originating prior to the time of

©2010 Singapore Dore Maritime Foundation

  

  

  

	
195

	
the Vessel's delivery to the-Buyers.

 

	
196

	
(xi) Three (3) Protocols of Delivery and Acceptance. (One each to be retained by the Buyers, the Sellers and the

	
197

	
closing Bank)

 

	
198 

	
(xii) Class Maintained Certificate dated not more than 3 working days prior to the date of delivery. However, if the

	
199

	
Class Maintained Certificate is issued prior to the underwater inspection, then a copy of the Class report following

	
200

	
the divers' inspection also to be included.

 

	
201

	
(xiii) The Sellers' letter of confirmation that to the best of their knowledge the Vessel:

 

	
202

	
—   has not sustained grounding or any other damage to underwater parts since underwater inspection (or

	
203

	
most recent dry-docking in case there is no divers' inspection).

 

	
204

	
—   is not black listed by any government, state, country, political sub division and union.

 

	
205

	
(xiv) A copy of Sellers or Sellers manager's letter(s) to the respective authorities confirming cancellation of all

	
206

	
Inmarset and other communication contracts for the Vessel effective at the time of delivery.

 

	
207

	
(xv) Letter from the Sellers confirming to the best of Sellers knowledge and belief, wages of crew have been duly

	
208

	
paid when due and the Sellers crew do not have any outstanding claim against the Vessel at the time of delivery.

 

	
209

	
(c) At the time of delivery of the Vessel the Buyers shall furnish the Sellers with the following documents (unless

	
210

	
otherwise specified all to be originals in English or with official English translations):

 

	
211

	
(i) A certified true copy of the Buyers' constitutive documents, the Buyers in-house attorney-at-law to certify the

	
212

	
constitutive documents as a true copy.

 

	
213

	
(ii) A current Certificate of Good Standing or equivalent.

 

	
214

	
(iii) Resolution of the Board of Directors of the Buyers approving the purchase of the Vessel from the Sellers and

	
215

	
granting a power of attorney to authorized representatives of the Buyers. Such Resolution to be aposlilled

	
216

	
notarially attested and then legalized by the appropriate authorities as required by the Sellers.  The notarial

	
217

	
certificate is to confirm the identity of the signatory, his/her ability to bind the Buyers and the authenticity of the

	
218

	
signature.

 

	
219

	
(iv) Power of Attorney of the Buyers authorizing the Buyers' representatives or their nominees to do all such acts

	
220

	
and things which the attorney may consider necessary or desirable on behalf of the Buyers with respect to the

	
221

	
purchase and taking delivery of the Vessel but including specifically, acceptance of the Bill of Sale, signing of the

	
222

	
Protocol of Delivery and Acceptance, release/payment of Deposit and Balance Purchase Price or any other

	
223

	
amounts pursuant to the Agreement. Such Power of Attorney to be apostilled notarially' attested-and-then-legalized

	
224

	
by the appropriate authorities as required by the Sellers.  The notarial certificate is to confirm the identify of the

	
225

	
signatory, his/her ability to bind the Buyers and the authenticity of the signature.

 

	
226

	
(v) Certificate from the President of the Buyers confirming the names of the Board of Directors and shareholders

	
227

	
of the Buyers.

 

	
228

	
(vi) A declaration duly signed by two (2) Directors of the Buyers, which shall be apostilled, stating that:

 

	
229 a.

	
a. The Buyers are not in violation of any anti-corrupt practices law or anti-terrorism law or any similar law relating

	
230

	
to money laundering, terrorism or terrorist financing; and

 

	
231

	
b. The Buyers will not fund all or part of any payment of the Purchase Price of the Vessel out of proceeds derived

	
232

	
from transactions that violate any prohibition under any anti-terrorism law or any similar law relating to money

	
233

	
laundering, terrorism or terrorist financing.

 

	
234

	
(vii) A corporate guarantee duly signed and delivered by Diana Containcrships Inc., the parent company of the

	
235

	
Buyers, to the Sellers in relation to the due performance of the Buyers of their obligations under this Agreement.

 

	
236

	
(d) As soon as possible but not later than 14 days prior to the Vessel's expected readiness for delivery, the Sellers and

	
237

	
the Buyers shall exchange by fax or email (copies to the extent possible) or drafts of the documents listed in sub

	
238

	
clauses (b) & (c) above for the other Party's review and comments. Copies of executed versions which are to be in

	
239

	
strict conformity with the drafts are also to be circulated latest 3 days prior to delivery.

 

	
240

	
At the time of delivery onboard the Vessel, the Sellers shall hand over to the Buyers all Classification Certificates,

	
241

	
Plans, Drawings, Record Books, Instruction Manuals (excluding ISM or other documents specific only to the

	
242

	
Sellers/their Managers). All other certificates and documents onboard and pertinent to the Vessel shall also be handed

	
243

	
over to the Buyers unless the Sellers are required to retain same, in which case photocopies are to be left onboard. All

	
244

	
other documents which may be in the Sellers'/Sellers manager's possession shall be promptly forwarded to the Buyers

©2010 Singapore Dore Maritime Foundation

  

  

  

	
245

	
after delivery. Forwarding charges, if any, to be for the Buyers' account. The Sellers may keep the Vessel's log books

	
246

	
but the Buyers to be so advised and have the right and opportunity to take copies of same.

 

	
247

	
    9. Encumbrances

 

	
248

	
a) It is a condition of this Agreement, any breach of which will entitle the Buyers to reject the Vessel, that the Vessel,

	
249

	
at the time of delivery, is free from all encumbrances, charters, mortgages, maritime liens, writs (save where security

	
250

	
has been furnished), port state and other administrative detentions, stowaways, trading commitments and any other

	
251

	
debts whatsoever.

 

	
252

	
b) The Sellers hereby undertake to indemnify fully the Buyers against all consequences of any claims against the

	
253

	
Buyers that may arise due to claims against the Vessel originating prior to the time of delivery of the Vessel to the

	
254

	
Buyers.

 

	
255

	
    10.  Expenses

 

	
256

	
The Buyers shall bear all expenses including taxes and fees in connection with the purchase and registration of the

	
257

	
Vessel under the Buyers' flag, and similarly the Sellers shall bear all expenses in connection with closing of the

	
258

	
Sellers' Registry.

 

	
259

	
    11. Vessel Name

 

	
260

	
After the end of the time-charter party as per Clause 18 below, the The Buyers undertake, upon delivery of the Vessel,

	
261

	
shall to change the name of the Vessel and alter its funnel markings.

 

	
262

	
    12. Buyers Default

 

	
263

	
(a) In the event of failure by the Buyers to pay the agreed Deposit or to provide the bank-to-bank confirmation set out

	
261

	
in Clause 1 by the Value Date, the Sellers have the right to cancel this Agreement and they shall be entitled to claim

	
265

	
compensation for their losses and expenses (but with no automatic right to compensation in the amount of the Deposit).

 

	
266

	
(b) The failure to pay the agreed Purchase Price, and any additional amounts due under Clause 7 and Clause 2(b),

	
267

	
within the deadline provided by Clause 2(a) or, if applicable, Clause 2(b), shall vest the Sellers with the right to cancel

	
268

	
this Agreement and the Deposit with any interest earned thereon shall be forfeited to the Sellers (irrespective of the

	
269

	
amount of the Sellers' actual losses and expenses). Insofar as the Deposit does not cover the Seller's actual losses and

	
270

	
expenses, they shall be entitled to claim further compensation for those losses and expenses not so covered.

 

	
271

	
(c) The burden of proving any loss and expense shall be on the Sellers.

 

	
272

	
    13. Sellers Default

 

	
273

	
(a) In the event of failure on the part of the Sellers to give Notice of Actual Readiness in accordance with Clause 5(b)

	
274

	
latest within the Cancelling Date specified in Box 10 or, Notice of Actual Readiness for Delivery having been

	
275

	
tendered, failure on the part of the Sellers to provide the documents required by Clause 8 and/or to deliver the Vessel

	
276

	
as provided in Clause 9, the Buyers shall have the option to cancel this Agreement.

 

	
277

	
(b) If after Notice of Actual Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to

	
278

	
be physically ready for delivery and is not made physically ready again in accordance with Clause 4 and a Notice of

	
279

	
Actual Readiness for Delivery re-tendered latest within the Cancelling Date in Box 10, the Buyers shall retain their

	
280

	
right to cancel.

 

	
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(c) In the event the Buyers choose to cancel this Agreement the Deposit together with interest earned shall be released

	
282

	
to them immediately.

 

	
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(d) In addition, save where the failure was caused by matters outside of the Sellers' reasonable control, the Buyers shall

	
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be entitled to claim compensation for all their losses and expenses caused by failure of the Sellers to give Notice of

	
285

	
Actual Readiness latest within the Cancelling Date in Box 10 or, if Notice of Actual Readiness for Delivery has been

	
286

	
tendered, caused by failure by the Sellers to provide the documents required by Clause 8 and/or to deliver the Vessel as

	
287

	
provided in Clause 9. The burden of proving any loss and expense, additional or otherwise, shall be on the Buyers. The

	
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burden of proving that the failure was caused by matters outside of the Sellers' reasonable control shall be on the

	
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Sellers.

 

	
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    14. Buyers Representatives

 

©2010 Singapore Dore Maritime Foundation

  

  

  

	
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The Buyers arc entitled to place two representatives on board the Vessel after signing a letter of indemnity in Sellers

	
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usual form, for the purpose of familiarization and as observers at their expense and risk after this Agreement has been

	
293

	
signed by both parties and the Deposit has been lodged. The Buyers' Representatives are to remain onboard until

	
294

	
delivery under the Master's control, but are to be allowed access to the Vessel's main spaces, machinery and

	
295

	
equipment without interference to the Vessel or her operations.

 

	
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    15. Arbitration & Governing Law

 

	
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i)* This Agreement and any guarantee contained herein shall be governed by and construed in accordance with

	
298

	
Singapore/English* Law and any and all disputes arising out of or in connection with this Agreement, including any

	
299

	
question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in

	
300

	
Singapore in accordance with the Arbitration Rules of the Singapore Chamber of Maritime Arbitration for the time

	
301

	
being in force at the commencement of the arbitration.

 

	
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ii)* This Agreement and any guarantee contained herein shall be governed by and construed in accordance with

	
303

	
.......................... Law and any and all disputes arising out of or in connection with this Agreement, including

	
304

	
any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in

	
305

	
........................... in accordance with the .............................. Rules for the time being in force at the

	
306

	
commencement of the arbitration.

 

	
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*15(i) and (ii) are alternatives, delete whichever is not applicable. In the absence of deletions, alternative 15 (i) and Singapore law

	
308

	
shall apply to the exclusion of any other law. In the absence of selection by the parties as to the applicable law, seat of  arbitration

	
309

	
and arbitration rules under alternative 15 (ii); Singapore law shall apply to the exclusion of any other law, Singapore shall be the

	
310

	
seat of arbitration and the arbitration rules of the Singapore Chamber of Maritime Arbitration shall apply.

 

	
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    16. Confidentiality Clause

 

	
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All negotiations are to be kept strictly private and confidential between the parties involved, subject however to any

	
313

	
disclosure requirements of the U.S. SEC and NASDAQ.  Both Parties agree in good faith to keep the terms and

	
314

	
conditions of this Agreement private and confidential except as required by law.  In the event the sale or details thereof

	
315

	
become known or reported in the market neither the Sellers nor the Buyers shall have the right to withdraw from the

	
316

	
sale or fail to fulfill all their obligations under this Agreement.

 

	
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    17.  Entire Agreement Clause

 

	
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This Agreement and any Addenda thereto contain the entire agreement between the Sellers and the Buyers relating to

	
319

	
the transaction which is the subject of this Agreement and all negotiations, understandings and agreements whether in

	
320

	
writing or otherwise between the Sellers and the Buyers are superseded and/or replaced by this Agreement.

 

	
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    18. Time Charter

 

	
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The Vessel to be chartered to APL (Bermuda) Ltd (or Guaranteed nominee or other entity of the NOL Group with

	
323

	
similar or better net worth than APL (Bermuda) Ltd, for a period of 24 months at a rate of USD 24.750 per day

	
324

	
including overtime with 45 days more or less in charterers option. Commencement of the time-charter party to

	
325

	
commence simultaneously upon delivery of the Vessel to the Buyers under this Agreement.

 

	
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Further in Charterers option 12 option 12 months including overtime.

 

	
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Rate for first option: USD 24.750 per day including overtime.

 

	
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Rate for second option: USD 28.000 per day including overtime.

 

	
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Period always with 45 days more or less whatever period finally performed.

 

	330	
Options always to be called latest close of business Singapore on anniversary date 20 and 32 months.

 

©2010 Singapore Dore Maritime Foundation

 

SK 26949 0001 1267997

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