Document:

d1187058_ex4-7.htm

EXHIBIT 4.7

	
1.

	
Date of Agreement

 

15th June 2010

 

Vessel’s Name:  MT PINK SANDS

	
THE BALTIC AND INTERNATIONAL MARITIME COUNSEL (BIMCO)

 

STANDARD SHIP MANAGEMENT AGREEMENT

 

CODE NAME:  “SHIPMAN 98”

                            Part I

 

	
2.

	
Owners (name, place of registered office and law of registry) (Cl. 1)

 

	
3.

	
Managers (name, place of registered office and law of registry) (Cl. 1)

	  	
Name

 

OCEANCLARITY OWNERS LIMITED

	  	
Name

 

TMS TANKERS LTD.

	  	
Place of registered office

 

Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH 96960

	  	
Place of registered office

 

Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH 96960

	  	
Law of Registry

 

Republic of Marshall Islands

	  	
Law of Registry

 

Republic of Marshall Islands

	
4.

	
Day and year of commencement of Agreement (Cl. 2)

 

DATE OF PRESENT AGREEMENT AS PER BOX 1

	  	  
	
5.

	
Crew Management (state “yes” or “no” as agreed) (Cl. 3.1)

 

YES

	
6.

	
Technical Management (state “yes” or “no” as agreed) (Cl. 3.2)

 

YES

	
7.

	
Commercial Management (state “yes” or “no” as agreed) (Cl. 3.3)

 

YES

	
8.

	
Insurance Agreements (state “yes” or “no” as agreed) (Cl. 3.4)

 

YES

	
9.

	
Accounting Services (state “yes” or “no” as agreed) (Cl. 3.5)

 

YES

	
10.

	
Sale or purchase of the Vessel (state “yes” or “no” as agreed) (Cl. 3.6)

 

YES

	
11.

	
Provisions  (state “yes” or “no” as agreed) (Cl. 3.7)

 

YES

	
12.

	
Bunkering (state “yes” or “no” as agreed) (Cl. 3.8)

 

YES

	
13.

	
Chartering Services Period (only to be filled in if “yes” stated in Box 7)

(Cl. 3.3(i))

Five Years from date indicated in Box 4

	
14.

	
Owner’s Insurance (state alternative (i), (ii) or (iii) of Cl. 6.3)

 

6.3(ii)

	
15.

	
Annual Daily Management Fee (state daily amount) (Cl. 8.1)

 

EURO 1,700.00

	
16.

	
Severance Costs (state maximum amount) (Cl. 8.4(ii))

 

As per applicable Collective Bargaining Agreement (CBA)

	
17.

	
Day and year of termination of Agreement (Cl. 17)

 

Five years from date indicated in Box 4

	
18.

	
Law and Arbitration (state alternative 19.1, 19.2 or 19.3; if 19.3 place of arbitration must be stated) (Cl. 19)

19.1

	
19.

	
Notices (state postal and cable address, telex and telefax number for serving notice and communication to the Owners) (Cl. 20)

 

c/o SAVVAS D. GEORGHIADES LAW OFFICE

TRIBUNE HOUSE

10, SKOPA STREET

CY-1303 NICOSIA, CYPRUS

TEL:  (+357) 22767515

Email:  law@kkadvocates.com

	
20.

	
Notices (state postal and cable address, telex and telefax number for serving notice and communication to the Managers) (Cl. 20)

 

TMS TANKERS LTD.

80, Kifissias Avenue, GR 15125, Marousi, Athens, Greece

Tel:  (+30) 210 8090400

Fax:  (+30) 210 8090405

Email:  management@tms-tankers.com

 

It is mutually agreed between the party stated in Box 2 and the party stated in Box 3 that this Agreement consisting of PART I and PART II as well as Annexes "A" (Details of Vessel), "B" (Details of Crew), “C” (Budget) and "D" (Associated vessels) attached hereto, shall be performed subject to the conditions contained herein.  In the event of a conflict of conditions, the provisions of PART I and Annexes "A", "B" "C" and "D" shall prevail over those of PART II to the extent of such conflict but no further...

 

	
Signature(s) (Owners)

 

	
Signature(s) (Managers)

 

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

 

  

  

  

 

 

ANNEX "A" (DETAILS OF VESSEL OR VESSELS) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: "SHIPMAN 98"

 

 

	
Date of Agreement

	
:

	  
	
Name of Vessel(s)

	
:

	
M/T PINK SANDS

	
Particulars of Vessel(s)

	
:

	
Call Sign

	
–

	
9HZD6

	  	  	
IMO No.

	
–

	
8920866

	  	  	
Flag

	
–

	
Malta

	  	  	
Built

	
–

	
1993

	  	  	
SDWT

	
–

	
93723

	  	  	
Grt

	
–

	
55048

	  	  	
Nrt

	
–

	
26546

 

 

 

 

 

 

 

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

 

  

  

  

 

 

ANNEX "B" (DETAILS OF CREW) TO

THE BALTIC AND  INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: "SHIPMAN 98"

 

 

	
Date of Agreement

	
:

	  	  	  
	
Details of Crew

	
:

	
N/A

	  	  

 

 

	
Numbers

	  	
Rank

	  	
Nationality

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

 

 

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

 

  

  

  

 

 

ANNEX "C" (BUDGET) TO

THE BALTIC AND  INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: "SHIPMAN 98"

 

 

See Box 15 and Clause 9

 

Managers' Budget for the first year with effect from the Commencement Date of this Agreement:

 

 

M/T PINK SANDS OC/FR

 

	 	 	
ITEMS

	 	
YEARLY

(USD)

	 	 	
MONTHLY

(USD)

	 
	 	1	 	
TOTAL CREW EXPENSES

	 	 	1,513,655	 	 	 	126,138	 
	 	2	 	
STORES

	 	 	195,275	 	 	 	16,273	 
	 	3	 	
SPARES

	 	 	198,925	 	 	 	16,577	 
	 	4	 	
REPAIR / MAINTENANCE / SURVEY

	 	 	122,275	 	 	 	10,190	 
	 	5	 	
LUBRICANTS

	 	 	219,000	 	 	 	18,250	 
	 	6	 	
SUPT. TRAVEL / COMM. / MISC.

	 	 	87,965	 	 	 	7,330	 
	 	7	 	
INSURANCE (H+M, P-I, WAR, LOH)

	 	 	438,365	 	 	 	36,530	 
	 	 	 	
GRAND TOTAL OPERATING COST

	 	 	2,775,460	 	 	 	231,288	 
	
DAILY AVERAGE (EXCL. DOCKING COST)

	 	 	7,604	 	 	 	 	 
	
PRE-DELIVERY COST

	 	 	 	 	 	 	 	 

 

 

NOTE:

 

	
1.

	
Prices basis at average of Singapore, Continent & China, otherwise, to be charged at actual.

	  	  
	
2.

	
Crew change basis Singapore and Continent port, otherwise, to be adjusted.

	  	  
	
3.

	
Spares costs are for routine maintenance (excluding major items).

	  	  
	
4.

	
Parity Euro / USD at 1,25.

	  	  
	
5.

	
The budget for Superintendent expenses is based on 5 visits per year of 4 days per each visit, i.e. 20 Superintendent days. Any additional attendance will be charged extra by the day at a standard rate of Euro 500 per day.

 

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

  

  

  

 

 

ANNEX "D" (ASSOCIATED VESSELS) TO

THE BALTIC AND  INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: "SHIPMAN 98"

 

 

 

NOTE:    PARTIES SHOULD BE AWARE THAT BY COMPLETING THIS ANNEX "D" THEY WILL BE SUBJECT TO THE PROVISIONS OF SUB-CLAUSE 18.1(i) OF THIS AGREEMENT.

 

 

	
Date of Agreement

	
:

	  	  	  
	
Details of Associated Vessels

	
:

	
 

	  	  
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

	  	  	  	  	  
	
1.  Definitions

	
1

	  	
for the duties for which they are engaged and are in possession

	
66

	
In this Agreement save where the context otherwise requires,

	
2

	  	
of valid medical certificates issued in accordance with

	
67

	
the following words and expressions shall have the meanings

	
3

	  	
appropriate flag State requirements. In the absence of

	
68

	
hereby assigned to them.

	
4

	  	
applicable flag State requirements the medical certificate shall

	
69

	  	  	  	
be dated not more than three months prior to the respective

	
70

	
"Owners" means the party identified in Box 2.

	
5

	  	
Crew members leaving their country of domicile and

	
71

	
"Managers" means the party identified in Box 3.

	
6

	  	
maintained for the duration of their service on board the Vessel;

	
72

	
"Vessel" means the vessel or vessels details of which are set

	
7

	  	
(iv)  ensuring that the Crew shall have a command of the English

	
73

	
out in Annex "A" attached hereto.

	
8

	  	
language of a sufficient standard to enable them to perform

	
74

	
"Crew" means the Master, officers and ratings of the numbers,

	
9

	  	
their duties safely;

	
75

	
rank and nationality specified in Annex "B" attached hereto.

	
10

	  	
(v)  arranging transportation of the Crew, including repatriation;

	
76

	
"Crew Support Costs" means all expenses of a general nature

	
11

	  	
(vi)  training of the Crew and supervising their efficiency;

	
77

	
which are not particularly referable to any individual vessel for

	
12

	  	
(vii)  conducting union negotiations;

	
78

	
the time being managed by the Managers and which are incurred

	
13

	  	
(viii)  operating the Managers' drug and alcohol policy unless

	
79

	
by the Managers for the purpose of providing an efficient and

	
14

	  	
otherwise agreed.

	
80

	
economic management service and, without prejudice to the

	
15

	  	  	  
	
generality of the foregoing, shall include the cost of crew standby

	
16

	  	
3.2  Technical Management

	
81

	
pay, training schemes for officers and ratings, cadet training

	
17

	  	
(only applicable if agreed according to Box 6)

	
82

	
schemes, sick pay, study pay, recruitment and interviews.

	
18

	  	
The Managers shall provide technical management which

	
83

	
"Severance Costs" means the costs which the employers are

	
19

	  	
includes, but is not limited to, the following functions:

	
84

	
legally obliged to pay to or in respect of the Crew as a result of

	
20

	  	
(i)  provision of competent personnel to supervise the

	
85

	
the early termination of any employment contract for service on

	
21

	  	
maintenance and general efficiency of the Vessel;

	
86

	
the Vessel.

	
22

	  	
(ii)  arrangement and supervision of dry dockings, repairs,

	
87

	
"Crew Insurances" means insurances against crew risks which

	
23

	  	
alterations and the upkeep of the Vessel to the standards

	
88

	
shall include but not be limited to death, sickness, repatriation,

	
24

	  	
required by the Owners provided that the Managers shall

	
89

	
injury, shipwreck unemployment indemnity and loss of personal

	
25

	  	
be entitled to incur the necessary expenditure to ensure

	
90

	
effects.

	
26

	  	
that the Vessel will comply with the law of the flag of the

	
91

	
"Management Services" means the services specified in sub-

	
27

	  	
Vessel and of the places where she trades, and all

	
92

	
clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12.

	
28

	  	
requirements and recommendations of the classification

	
93

	
"ISM Code" means the International Management Code for the

	
29

	  	
society;

	
94

	
Safe Operation of Ships and for Pollution Prevention as adopted

	
30

	  	
(iii)  Arrangement of the supply of necessary stores, spares and

	
95

	
by the International Maritime Organization (IMO) by resolution

	
31

	  	
lubricating oil;

	
96

	
A.741(18) or any subsequent amendment thereto.

	
32

	  	
(iv)  appointment of surveyors and technical consultants as the

	
97

	
"STCW 95" means the International Convention on Standards

	
33

	  	
Managers may consider from time to time to be necessary;

	
98

	
of Training, Certification and Watchkeeping for Seafarers, 1978,

	
34

	  	
(v)  development, implementation and maintenance of a Safety

	
99

	
as amended in 1995 or any subsequent amendment thereto.

	
35

	  	
Management System (SMS) in accordance with the ISM

	
100

	  	  	  	
Code (see sub-clauses 4.2 and 5.3).

	
101

	
2.  Appointment of Managers

	
36

	  	
(vi)  supervision of vessels under construction at the specific

	  
	
With effect from the day and year stated in Box 4 and continuing

	
37

	  	
request of the Owners and after approval by the Owner of

	  
	
unless and until terminated as provided herein, the Owners

	
38

	  	
the relevant budget submitted by the Managers.

	  
	
hereby appoint the Managers and the Managers hereby agree

	
39

	  	  	  
	
to act as the Managers of the Vessel.

	
40

	  	
3.3  Commercial Management

	
102

	  	  	  	
(only applicable if agreed according to Box 7)

	
103

	
3.  Basis of Agreement

	
41

	  	
The Managers shall provide the commercial operation of the

	
104

	
Subject to the terms and conditions herein provided, during the

	
42

	  	
Vessel, as required by the Owners, which includes, but is not

	
105

	
period of this Agreement, the Managers shall carry out

	
43

	  	
limited to, the following functions:

	
106

	
Management Services in respect of the Vessel as agents for

	
44

	  	
(i)  providing chartering services in accordance with the Owners'

	
107

	
and on behalf of the Owners. The Managers shall have authority

	
45

	  	
instructions which include, but are not limited to, seeking

	
108

	
to take such actions as they may from time to time in their absolute

	
46

	  	
and negotiating employment for the Vessel and the conclusion

	
109

	
discretion consider to be necessary to enable them to perform

	
47

	  	
(including the execution thereof) of charter parties or other

	
110

	
this Agreement in accordance with sound ship management

	
48

	  	
contracts relating to the employment of the Vessel. If such a

	
111

	
practice.

	
49

	  	
contract exceeds the period stated in Box 13, consent thereto

	
112

	  	  	  	
in writing shall first be obtained from the Owners.

	
113

	
3.1  Crew Management

	
50

	  	
(ii)  arranging of the proper payment to Owners or their nominees

	
114

	
(only applicable if agreed according to Box 5)

	
51

	  	
of all hire and/or freight revenues or other moneys of

	
115

	
The Managers shall provide suitably qualified Crew for the Vessel

	
52

	  	
whatsoever nature to which Owners may be entitled arising

	
116

	
as required by the Owners in accordance with the STCW 95

	
53

	  	
out of the employment of or otherwise in connection with the

	
117

	
requirements, provision of which includes but is not limited to

	
54

	  	
Vessel.

	
118

	
the following functions:

	
55

	  	
(iii)  providing voyage estimates and accounts and calculating of

	
119

	
(i)  selecting and engaging the Vessel's Crew, including payroll

	
56

	  	
hire, freights, demurrage and/or despatch moneys due from

	
120

	
arrangements, pension administration, and insurances for

	
57

	  	
or due to the charterers of the Vessel;

	
121

	
the Crew other than those mentioned in Clause 6:

	
58

	  	
(iv)  issuing of voyage instructions;

	
122

	
(ii)  ensuring that the applicable requirements of the law of the

	
59

	  	
(v)  appointing agents;

	
123

	
flag of the Vessel are satisfied in respect of manning levels,

	
60

	  	
(vi)  appointing stevedores;

	
124

	
rank, qualification and certification of the Crew and

	
61

	  	
(vii)  arranging surveys associated with the commercial operation

	
125

	
employment regulations including Crew's tax, social

	
62

	  	
of the Vessel.

	
126

	
insurance, discipline and other requirements;

	
63

	  	  	  
	
(iii)  ensuring that all members of the Crew have passed a medical

	
64

	  	
3.4  Insurance Arrangements

	
127

	
examination with a qualified doctor certifying that they are fit

	
65

	  	
(only applicable if agreed according to Box 8)

	
128

	  	  	  	
The Managers shall arrange insurances in accordance with

	
129

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

	  	  	  	  	  
	
Clause 6, on such terms and conditions as the Owners shall

	
130

	  	
responsibilities imposed by the ISM Code when applicable.

	
192

	
have instructed or agreed, in particular regarding conditions,

	
131

	  	  	  
	
insured values, deductibles and franchises.

	
132

	  	
6.  Insurance Policies

	
193

	  	  	  	
The Owners shall procure, whether by instructing the Managers

	
194

	
3.5  Accounting Services

	
133

	  	
under sub-clause 3.4 or otherwise, that throughout the period of

	
195

	
(only applicable if agreed according to Box 9)

	
134

	  	
this Agreement:

	
196

	
The Managers shall:

	
135

	  	
6.1  at the Owners’ expense, the Vessel is insured for not less

	
197

	
(i)  establish an accounting system which meets the

	
136

	  	
than her sound market value or entered for her full gross tonnage,

	
198

	
requirements of the Owners and provide regular accounting

	
137

	  	
as the case may be for:

	
199

	
services, supply regular reports and records,

	
138

	  	
(i)  usual hull and machinery marine risks (including crew

	
200

	
(ii)  maintain the records of all costs and expenditure incurred

	
139

	  	
negligence) and excess liabilities;

	
201

	
as well as data necessary or proper for the settlement of

	
140

	  	
(ii)  protection and indemnity risks (including pollution risks and

	
202

	
accounts between the parties.

	
141

	  	
Crew Insurances); and

	
203

	  	  	  	
(iii)  war risks (including protection and indemnity and crew risks)

	
204

	
3.6  Sale or Purchase of the Vessel

	
142

	  	
in accordance with the best practice of prudent  owners of

	
205

	
(only applicable if agreed according to Box 10)

	
143

	  	
vessels of a similar type to the Vessel, with first class insurance

	
206

	
The Managers shall, in accordance with the Owners’ instructions,

	
144

	  	
companies, underwriters or associations (“the Owners’

	
207

	
supervise the sale or purchase of the Vessel, including the

	
145

	  	
Insurances”);

	
208

	
performance of any sale or purchase agreement, including but not

	
146

	  	
(iv)  Freight, Demurrage and Defense Insurance

	  
	
negotiation of the same.

	
147

	  	
(v)  Certificate of Financial Responsibility

	  
	
3.7  Provisions (only applicable if agreed according to Box 11)

	
148

	  	
(vi)  Crew Personal Accident and Sundries insurance cover

	  
	
The Managers shall arrange for the supply of provisions.

	
149

	  	
(vii)  Any other insurance that can be arranged and not included in 

	  
	
3.8  Bunkering (only applicable if agreed according to Box 12)

	
150

	  	
the above but is requested by the Owners in writing

	  
	
The Managers shall arrange for the provision of bunker fuel of the

	
151

	  	
6.2  all premiums, deductibles, supplementary calls and/or excess

	
209

	
quality specified by the Owners as required for the Vessel’s trade.

	
152

	  	
supplementary calls and release calls on the Owners’ Insurances

	  
	  	  	  	
are paid

	  
	
4.  Managers’ Obligations

	
153

	  	
promptly by their due date,

	
210

	
4.1  The Managers undertake to use their best endeavors

	
154

	  	
6.3  the Owners’ Insurances name the Managers and, subject

	
211

	
endeavours to

	  	  	
to underwriters’ agreement, any third party designated by the

	
212

	
provide the agreed Management Services as agents for and on

	
155

	  	
Managers as a joint assured, with full cover, with the Owners

	
213

	
behalf of the Owners in accordance with sound ship management

	
156

	  	
obtaining cover in respect of each of the insurances specified in

	
214

	
practice and to protect and promote the interests of the Owners in

	
157

	  	
sub-clause 6.1:

	
215

	
all matters relating to the provision of services hereunder.

	
158

	  	
(i)on terms whereby the Managers and any such third party

	
216

	
Provided, however, that the Managers in the performance of their

	
159

	  	
are liable in respect of premiums or calls arising in connection

	
217

	
management responsibilities under this Agreement shall be entitled

	
160

	  	
with the Owners’ Insurances; or

	
218

	
to have regard to their overall responsibility in relation to all vessels

	
161

	  	
(ii)  if reasonably obtainable, on terms such that neither the

	
219

	
as may from time to time be entrusted to their management and

	
162

	  	
Managers nor any such third party shall be under any

	
220

	
in particular, but without prejudice to the generality of the foregoing,

	
163

	  	
liability in respect of premiums or calls arising in connection

	
221

	
the Managers shall be entitled to allocate available supplies,

	
164

	  	
with the Owners’ Insurances; or

	
222

	
manpower and services in such manner as in the prevailing

	
165

	  	
(iii)  on such other terms as may be agreed in writing.

	
223

	
circumstances the Managers in their absolute discretion consider

	
166

	  	
Indicate alternative (i), (ii) or (iii) in Box 14. If Box 14 is left

	
224

	
to be fair and reasonable.

	
167

	  	
blank then (i) applies.

	
225

	
4.2  Where the Managers are providing Technical Management

	
168

	  	
6.4  written evidence is provided, to the reasonable satisfaction

	
226

	
in accordance with sub-clause 3.2, they shall procure that the

	
169

	  	
of the Managers, of their compliance with their obligations under

	
227

	
requirements of the law of the flag of the Vessel are satisfied and

	
170

	  	
Clause 6 within a reasonable time of the commencement of

	
228

	
they shall in particular be deemed to be the “Company” as defined

	
171

	  	
the Agreement, and of each renewal date and, if specifically

	
229

	
by the ISM Code, assuming the responsibility for the operation of

	
172

	  	
requested, of each payment date of the Owners’ Insurances.

	
230

	
the Vessel and taking over the duties and responsibilities imposed

	
173

	  	  	  
	
by the ISM Code when applicable.

	
174

	  	
7.  Income Collected and Expenses Paid on Behalf of Owners

	
231

	  	  	  	
7.1  All moneys collected by the Managers under the terms of

	
232

	
5.  Owners’ Obligations

	
175

	  	
this Agreement (other than moneys payable by the Owners to

	
233

	
5.1  The Owners shall pay all sums due to the Managers punctually

	
176

	  	
the Managers) and any interest thereon shall be held to the

	
234

	
in accordance with the terms of this Agreement.

	
177

	  	
credit of the Owners in a separate bank account.

	
235

	
5.2  Where the Managers are providing Technical Management

	
178

	  	
7.2  All expenses incurred by the Managers under the terms

	
236

	
in accordance with sub-clause 3.2, the Owners shall:

	
179

	  	
of this Agreement on behalf of the Owners (including expenses

	
237

	
(i)  procure that all officers and ratings supplied by them or on

	
180

	  	
as provided in Clause 8) may be debited against the Owners

	
238

	
their behalf comply with the requirements of STCW 95;

	
181

	  	
in the account referred to under sub-clause 7.1 but shall in any

	
239

	
(ii)  instruct such officers and ratings to obey all reasonable orders

	
182

	  	
event remain payable by the Owners to the Managers on

	
240

	
of the Managers in connection with the operation of the

	
183

	  	
demand.

	
241

	
Managers’ safety management system.

	
184

	  	  	  
	
5.3  Where the Managers are not providing Technical Management

	
185

	  	
8.  Management Fee

	
242

	
in accordance with sub-clause 3.2, the Owners shall procure that

	
186

	  	
8.1  (a)  The Owners shall pay to the Managers for their services

	
243

	
the requirements of the law of the flag of the Vessel are satisfied

	
187

	  	
as Managers under this Agreement an annual a daily management

	
244

	
and that they, or such other entity as may be appointed by them

	
188

	  	
fee as stated in Box 15 which shall be payable by equal

	
245

	
and identified to the Managers, shall be deemed to be the

	
189

	  	
monthly instalments in advance, the first instalment being

	
246

	
"Company" as defined by the ISM Code assuming the responsibility

	
190

	  	
payable on the commencement of this Agreement (see Clause

	
247

	
for the operation of the Vessel and taking over the duties and

	
191

	  	
2 and Box 4) and subsequent instalments being payable every

	
248

	  	  	  	
month.

	
249

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

	  	  	  	  	  
	
8.1  (b)  The Owners shall place with the Manager for the duration

	 	 	 	 
	

of this Agreement an amount equal to one month of

	  	  	
less than three months before the anniversary date of the

	
291

	

management fee stated in Box 15 as security.

	  	  	
commencement of this Agreement (see Clause 2 and Box 4).

	
292

	
 

	  	  	
9.2  The Owners shall indicate to the Managers their acceptance

	
293

	
Upon termination of this Agreement, all moneys remaining

	  	  	
and approval of the annual budget within one month of

	
294

	
within the security or any portion thereof, if the amounts due to

	  	  	
presentation and in the absence of any such indication the

	
295

	
the Manager pursuant with the obligations set forth in the

	  	  	
Managers shall be entitled to assume that the Owners have

	
296

	
management agreement and their addenda (if any) is less than

	  	  	
accepted the proposed budget.

	
297

	
the security amount paid as per above shall be returned to the

	  	  	
9.3  The Owner shall place with the Manager for the duration of

	  
	
Owner subject to the terms and conditions of this agreement. It

	  	  	
this Agreement an amount equal to one month running

	  
	
is being understood that in event of default from the part of the

	  	  	
expenses as working capital reserve. For calculation purposes

	  
	
Owner is forfeited in favor of the Manager without prejudice to

	  	  	
the reserve will be based on the agreed budgeted daily average

	  
	
any rights which the Manager may have against the Owner in

	  	  	
cost as per the respective management agreement. Upon

	  
	
law or in equity.

	  	  	
termination of this Agreement all moneys remaining within the

	  
	
8.2  The management fee shall be subject to an annual a review

	
250

	  	
working capital reserve shall be returned to the Owner subject

	  
	
on the anniversary date of the Agreement and for each calendar

	
251

	  	
to the terms and conditions of this agreement. Following the

	  
	
year and will be automatically adjusted to the Greek CPI index

	  	  	
agreement of the budget, the Managers shall

	  
	
for the previous year.  It is understood that any such increase

	  	  	
prepare and present to the Owners their estimate of the working

	
299

	
will not be less than 3% and more than 5%. The proposed

	  	  	
capital requirement of the Vessel and the Managers shall each

	
300

	
fee shall be presented in the annual budget referred to in sub-

	
252

	  	
month up-date this estimate. Based thereon, the Managers shall

	
301

	
clause 9.1 clause 9.1.

	
253

	  	
each month request the Owners in writing for the funds required

	
302

	
8.3  The Managers shall, at no extra cost to the Owners, provide

	
254

	  	
to run the Vessel for the ensuing month, including the payment

	
303

	
their own office accommodation, office staff, facilities and

	
255

	  	
of any occasional or extraordinary item of expenditure, such as

	
304

	
stationery. Without limiting the generality of Clause 7 the Owners

	
256

	  	
emergency repair costs, additional insurance premiums, bunkers

	
305

	
shall reimburse the Managers for postage and communication

	
257

	  	
or provisions. Such funds shall be received by the Managers

	
306

	
expenses, travelling expenses, and other out of pocket

	
258

	  	
within ten running days after the receipt by the Owners of the

	
307

	
expenses properly incurred by the Managers in pursuance of

	
259

	  	
Managers' written request and shall be held to the credit of the

	
308

	
the Management Services.

	
260

	  	
Owners in a separate bank account.

	
309

	
8.4  In the event of the appointment of the Managers being

	
261

	  	
9.4  The Managers shall produce a comparison between

	
310

	
terminated for any reason other than Clause 19.2 by the Owners

	
262

	  	
budgeted and actual income and expenditure of the Vessel in

	
311

	
Or the Managers in accordance with

	  	  	
such form as required by the Owners monthly on a yearly basis or

	
312

	
the provisions of Clauses 17 and 18 other than by reason of

	
263

	  	
at such other

	  
	
default by the Managers, or if the Vessel is lost, sold or otherwise

	
264

	  	
intervals as mutually agreed.

	
313

	
disposed of, the "management fee" shall be payable to the Managers

	
265

	  	
9.5  Notwithstanding anything contained herein to the contrary,

	
314

	
according to the provisions of sub-clause 8.1. shall continue to

	
266

	  	
the Managers shall in no circumstances be required to use or

	
315

	
be payable for a further period of three (3) calendar months as

	
267

	  	
commit their own funds to finance the provision of the

	
316

	
from the termination date. In addition, provided that the

	
268

	  	
Management Services.

	
317

	
Managers provide Crew for the Vessel in accordance with sub-

	
269

	  	  	  
	
clause 3.1:

	
270

	  	
10.  Managers' Right to Sub-Contract

	
318

	
(i)  the Owners shall continue to pay Crew Support Costs during

	
271

	  	
The Managers shall not have the right to sub-contract any of

	
319

	
the said further period of three (3) calendar months and

	
272

	  	
their obligations hereunder, including those mentioned in sub-

	
320

	
(ii)  the Owners shall pay an equitable proportion of any

	
273

	  	
clause 3.1, without the prior written consent of the Owners which

	
321

	
Severance Costs which may materialize, not exceeding

	
274

	  	
shall not be unreasonably withheld. In the event of such a sub-

	
322

	
the amount stated in Box 16.

	
275

	  	
contract the Managers shall remain fully liable for the due

	
323

	
8.5  If the Owners decide to lay-up the Vessel whilst this

	
276

	  	
performance of their obligations under this Agreement.

	
324

	
Agreement remains in force and such lay-up lasts for more

	
277

	  	  	  
	
than three months, an appropriate reduction of the management

	
278

	  	
11.  Responsibilities

	
325

	
fee for the period exceeding three months until one month

	
279

	  	
11.1  Force Majeure - Neither the Owners nor the Managers

	
326

	
before the Vessel is again put into service shall be mutually

	
280

	  	
shall be under any liability for any failure to perform any of their

	
327

	
agreed between the parties.

	
281

	  	
obligations hereunder by reason of any cause whatsoever of

	
328

	
8.6  Unless otherwise agreed in writing all discounts and

	
282

	  	
any nature or kind beyond their reasonable control. For the

	
329

	
commissions obtained by the Managers in the course of the

	
283

	  	
avoidance of any doubt financial force majeure does not apply.

	  
	
management of the Vessel shall be credited to the Owners. For the

	
284

	  	
11.2  Liability to Owners - (i)  Without prejudice to sub-clause

	
330

	
avoidance of any doubt, it is understood that insurance is

	  	  	
11.1 the Managers shall be under no liability whatsoever to the

	
331

	
charged on a gross rate basis.

	  	  	
Owners for any loss, damage, delay or expense of whatsoever

	
332

	
8.7  In case of vessels under construction, no management fee

	  	  	
nature, whether direct or indirect, (including but not limited to

	
333

	
will be charged by the Managers until the vessel's delivery to

	  	  	
loss of profit arising out of or in connection with detention of or

	
334

	
the Owners. However, in case Owners instruct the Managers to

	  	  	
delay to the Vessel) and howsoever arising in the course of

	
335

	
supervise vessels under construction as per Clause 3.2(vi) then

	  	  	
performance of the Management Services UNLESS same is

	
336

	
the Managers will be due an upfront fee equal to 10% of the

	  	  	
proved to have resulted solely from the negligence, gross

	
337

	
budget approved by the Owners. Such fee, will be payable in

	  	  	
negligence or wilful default of the Managers or their employees,

	
338

	
USD. For the avoidance of any doubt the rest of the paragraphs

	  	  	
or agents or sub-contractors employed by them in connection

	
339

	
of Clause 8 to remain in force.

	  	  	
with the Vessel, in which case (save where loss, damage, delay

	
340

	  	  	  	
or expense has resulted from the Managers' personal act or

	
341

	
9. Budgets and Management of Funds

	
285

	  	
omission committed with the intent to cause same or recklessly

	
342

	
9.1 On or before November 30 of each calendar year Tthe

	
286

	  	
and with knowledge that such loss, damage, delay or expense

	
343

	
Managers shall present to the Owners annually a

	  	  	
would probably result) the Managers' liability for each incident

	
344

	
budget (see Annex "C") for the following twelve months next

	
287

	  	
or series of incidents giving rise to a claim or claims shall never

	
345

	
calendar year in such form as the

	  	  	
exceed a total of ten times the annual management fee payable

	
346

	
Owners reasonably require. The budget for the fiscal year hereof is

	
288

	  	
hereunder.

	
347

	
set out

	  	  	
(ii)  Notwithstanding anything that may appear to the contrary in

	
348

	
in Annex "C" hereto. Subsequent annual budgets shall be

	
289

	  	
this Agreement, the Managers shall not be liable for any of the

	
349

	
prepared by the Managers and submitted to the Owners not

	
290

	  	  	  

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

	  
	  	  	  	  	  
	
actions of the Crew, even if such actions are negligent, grossly

	
350

	  	
14.  Auditing

	
416

	
negligent or wilful, except only to the extent that they are shown

	
351

	  	
The Managers shall at all times maintain and keep true and

	
417

	
to have resulted from a failure by the Managers to discharge

	
352

	  	
correct accounts in accordance with sound accounting practice

	
418

	
their obligations under sub-clause 3.1, in which case their liability

	
353

	  	
and an adequate and effective system of internal controls and

	  
	
shall be limited in accordance with the terms of this Clause 11.

	
354

	  	
procedures and shall make the same available for permit the

	  
	
11.3  Indemnity - Except to the extent and solely for the amount

	
355

	  	
inspection

	  
	
therein set out that the Managers would be liable under sub-

	
356

	  	
and auditing by the Owners and their Auditors at such times as

	
419

	
clause 11.2, the Owners hereby undertake to keep the Managers

	
357

	  	
may be mutually

	  
	
and their employees, agents and sub-contractors indemnified

	
358

	  	
agreed. On the termination, for whatever reasons, of this

	
420

	
and to hold them harmless against all actions, proceedings,

	
359

	  	
Agreement, the Managers shall release to the Owners, if so

	
421

	
claims, demands or liabilities whatsoever or howsoever arising

	
360

	  	
requested, the originals where possible, or otherwise certified

	
422

	
which may be brought against them or incurred or suffered by

	
361

	  	
copies, of all such accounts and all documents specifically relating

	
423

	
them arising out of or in connection with the performance of the

	
362

	  	
to the Vessel and her operation.

	  
	
Agreement, and against and in respect of all costs, losses,

	
363

	  	  	  
	
damages and expenses (including legal costs and expenses on

	
364

	  	
15.  lnspection of Vessel

	
425

	
a full indemnity basis) which the Managers may suffer or incur

	
365

	  	
The Owners shall have the right at any time after giving

	
426

	
(either directly or indirectly) in the course of the performance of

	
366

	  	
reasonable notice to the Managers to inspect the Vessel for any

	
427

	
this Agreement.

	
367

	  	
reason they consider necessary.

	
428

	
11.4  "Himalaya" - It is hereby expressly agreed that no

	
368

	  	  	  
	
employee or agent of the Managers (including every sub-

	
369

	  	
16.  Compliance with Laws and Regulations

	
429

	
contractor from time to time employed by the Managers) shall in

	
370

	  	
The Managers will not do or permit to be done anything which

	
430

	
any circumstances whatsoever be under any liability whatsoever

	
371

	  	
might cause any breach or infringement of the laws and

	
431

	
to the Owners for any loss, damage or delay of whatsoever kind

	
372

	  	
regulations of the Vessel's flag, or of the places where she trades.

	
432

	
arising or resulting directly or indirectly from any act, neglect or

	
373

	  	  	  
	
default on his part while acting in the course of or in connection

	
374

	  	
17.  Duration of the Agreement

	
433

	
with his employment and, without prejudice to the generality of

	
375

	  	
This Agreement shall come into effect on the day and year stated

	
434

	
the foregoing provisions in this Clause 11, every exemption,

	
376

	  	
in Box 4 and shall continue until the date stated in Box 17.

	
435

	
limitation, condition and liberty herein contained and every right,

	
377

	  	
Thereafter it shall automatically renew for a five-year period and

	
436

	
exemption from liability, defence and immunity of whatsoever

	
378

	  	
shall thereafter be extended in additional five-year increments if

	  
	
nature applicable to the Managers or to which the Managers are

	
379

	  	
notice of termination is not provided by the Owners in the fourth

	  
	
entitled hereunder shall also be available and shall extend to

	
380

	  	
quarter of the year immediately preceding the end of the

	  
	
protect every such employee or agent of the Managers acting

	
381

	  	
respective term, continue until terminated by either party giving

	  
	
as aforesaid and for the purpose of all the foregoing provisions

	
382

	  	
to the other notice in writing, in which event the Agreement shall

	
437

	
of this Clause 11 the Managers are or shall be deemed to be

	
383

	  	
terminate upon the expiration of a period of two months from the

	
438

	
acting as agent or trustee on behalf of and for the benefit of all

	
384

	  	
date upon which such notice was given.

	
439

	
persons who are or might be their servants or agents from time

	
385

	  	  	  
	
to time (including sub-contractors as aforesaid) and all such

	
386

	  	
18.  Termination

	
440

	
persons shall to this extent be or be deemed to be parties to this

	
387

	  	
18.1 Owners' Default

	
441

	
Agreement.

	
388

	  	
(i)  The Managers shall be entitled to terminate the Agreement

	
442

	  	  	  	
with immediate effect by notice in writing if any moneys

	
443

	
12.  Documentation

	
389

	  	
payable by the Owners under this Agreement and/or the

	
444

	
Where the Managers are providing Technical Management in

	
390

	  	
Owners of any associated vessel, details of which are listed

	
445

	
accordance with sub-clause 3.2 and/or Crew Management in

	
391

	  	
in Annex "D", shall not have been received in the Managers'

	
446

	
accordance with sub-clause 3.1, they shall make available,

	
392

	  	
nominated account within ten (10) running days of receipt by

	
447

	
upon Owners' request, all documentation and records related

	
393

	  	
the Owners of the Managers written request or if the Vessel

	
448

	
to the Safety Management System (SMS) and/or the Crew

	
394

	  	
is repossessed by the Mortgagees.

	
449

	
which the Managers need in order to demonstrate compliance

	
395

	  	
(ii)  If the Owners:

	
450

	
with the ISM Code and STCW 95 or to defend a claim against

	
396

	  	
     (a)  fail to meet their obligations under sub-clauses 5.2

	
451

	
a third party.

	
397

	  	
and 5.3 of this Agreement for any reason within their

	
452

	  	  	  	
control, or

	
453

	
13.  General Administration

	
398

	  	
     (b)  proceed with the employment of or continue to employ

	
454

	
13.1  The Managers shall handle and settle all claims arising

	
399

	  	
the Vessel in the carriage of contraband, blockade

	
455

	
out of the Management Services hereunder and keep the Owners

	
400

	  	
running, or in an unlawful trade, or on a voyage which

	
456

	
informed regarding any incident of which the Managers become

	
401

	  	
in the reasonable opinion of the Managers is unduly

	
457

	
aware which gives or may give rise to claims or disputes involving

	
402

	  	
hazardous or improper,

	
458

	
third parties.

	
403

	  	
the Managers may give notice of the default to the Owners,

	
459

	
13.2  The Managers shall, as instructed by the Owners, bring

	
404

	  	
requiring them to remedy it as soon as practically possible.

	
460

	
or defend actions, suits or proceedings in connection with matters

	
405

	  	
In the event that the Owners fail to remedy it within a

	
461

	
entrusted to the Managers according to this Agreement.

	
406

	  	
reasonable time to the satisfaction of the Managers, the

	
462

	
13.3  The Managers shall also have power to obtain legal or

	
407

	  	
Managers shall be entitled to terminate the Agreement

	
463

	
technical or other outside expert advice in relation to the handling

	
408

	  	
with immediate effect by notice in writing.

	
464

	
and settlement of claims and disputes or all other matters

	
409

	  	
18.2Managers' Default

	
465

	
affecting the interests of the Owners in respect of the Vessel.

	
410

	  	
If the Managers fail to meet their obligations under Clauses 3

	
466

	
13.4 The Owners shall arrange for the provision of any

	
411

	  	
and 4 of this Agreement for any reason within the control of the

	
467

	
necessary guarantee bond or other security.

	
412

	  	
Managers, the Owners may give notice to the Managers of the

	
468

	
13.5 Any costs reasonably incurred by the Managers in

	
413

	  	
default, requiring them to remedy it as soon as practically

	
469

	
carrying out their obligations according to Clause 13 shall be

	
414

	  	
possible. In the event that the Managers fail to remedy it within a

	
470

	
reimbursed by the Owners.

	
415

	  	
reasonable time to the satisfaction of the Owners, the Owners

	
471

	  	  	  	
shall be entitled to terminate the Agreement with immediate effect

	
472

	  	  	  	
by notice in writing.

	
473

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

  

  

  

 

	
PART II

"SHIPMAN 98" Standard Ship Management Agreement

	  	  	  	  	  
	
18.3  Extraordinary Termination

	
474

	  	
party requiring the other party to appoint its own arbitrator

	
516

	
This Agreement shall be deemed to be terminated in the case of

	
475

	  	
within 14 calendar days of that notice and stating that it will

	
517

	
the sale of the Vessel or if the Vessel becomes a total loss or is

	
476

	  	
appoint its arbitrator as sole arbitrator unless the other party

	
518

	
declared as a constructive or compromised or arranged total

	
477

	  	
appoints its own arbitrator and gives notice that it has done

	
519

	
loss or is requisitioned.

	
478

	  	
so within the 14 days specified. If the other party does not

	
520

	
18.4  For the purpose of sub-clause 18.3 hereof

	
479

	  	
appoint its own arbitrator and give notice that it has done so

	
521

	
(i)  the date upon which the Vessel is to be treated as having

	
480

	  	
within the 14 days specified, the party referring a dispute to

	
522

	
been sold or otherwise disposed of shall be the date on

	
481

	  	
arbitration may, without the requirement of any further prior

	
523

	
which the Owners cease to be registered as Owners of

	
482

	  	
notice to the other party, appoint its arbitrator as sole

	
524

	
the Vessel;

	
483

	  	
arbitrator and shall advise the other party accordingly. The

	
525

	
(ii)  the Vessel shall not be deemed to be lost unless either

	
484

	  	
award of a sole arbitrator shall be binding on both parties

	
526

	
she has become an actual total loss or agreement has

	
485

	  	
as if he had been appointed by agreement.

	
527

	
been reached with her underwriters in respect of her

	
486

	  	
Nothing herein shall prevent the parties agreeing in writing

	
528

	
constructive, compromised or arranged total loss or if such

	
487

	  	
to vary these provisions to provide for the appointment of a

	
529

	
agreement with her underwriters is not reached it is

	
484

	  	
sole arbitrator.

	
530

	
adjudged by a competent tribunal that a constructive loss

	
489

	  	
In cases where neither the claim nor any counterclaim

	
531

	
of the Vessel has occurred.

	
490

	  	
exceeds the sum of USD50.000 (or such other sum as the

	
532

	
18.5  This Agreement shall terminate forthwith in the event of

	
491

	  	
parties may agree) the arbitration shall be conducted in

	
533

	
an order being made or resolution passed for the winding up,

	
492

	  	
accordance with the LMAA Small Claims Procedure current

	
534

	
dissolution, liquidation or bankruptcy of either party (otherwise

	
493

	  	
at the time when the arbitration proceedings are commenced.

	
535

	
than for the purpose of reconstruction or amalgamation) or if a

	
494

	  	
19.2  This Agreement shall be governed by and construed

	
536

	
receiver is appointed, or if it suspends payment, ceases to carry

	
495

	  	
in accordance with Title 9 of the United States Code and

	
537

	
on business or makes any special arrangement or composition

	
496

	  	
the Maritime Law of the United States and any dispute

	
538

	
with its creditors.

	
497

	  	
arising out of or in connection with this Agreement shall be

	
539

	
18.6  The termination of this Agreement shall be without

	
498

	  	
referred to three persons at New York, one to be appointed

	
540

	
prejudice to all rights accrued due between the parties prior to

	
499

	  	
by each of the parties hereto, and the third by the two so

	
541

	
the date of termination.

	
500

	  	
chosen; their decision or that of any two of them shall be

	
542

	  	  	  	
final, and for the purposes of enforcing any award,

	
543

	
18.7  Termination After Change of Control

	  	  	
judgement may be entered on an award by any court of

	
544

	
This Agreement will terminate automatically immediately after a

	  	  	
competent jurisdiction. The proceedings shall be conducted

	
545

	
chnage of control (as defined below) of the Owners and/or of

	  	  	
in accordance with the rules of the Society of Maritime

	
546

	
the Owners' ultimate parent.  Upon such termination, the Owners

	  	  	
Arbitrators, Inc.

	
547

	
will be required to pay the Manager the Termination Payment in

	  	  	
In cases where neither the claim nor any counterclaim

	
548

	
a single installment.

	  	  	
exceeds the sum of USD50,000 (or such other sum as the

	
549

	
For the purposes of this Agreement "Change of Control" means

	  	  	
parties may agree) the arbitration shall be conducted in

	
550

	
the occurrence of any of the following:

	  	  	
accordance with the Shortened Arbitration Procedure of the

	
551

	  	  	  	
Society of Maritime Arbitrators, Inc. current at the time when

	
552

	
(i)  The acquisition by any individual, entity or group of

	  	  	
the arbitration proceedings are commenced.

	
553

	
beneficial ownership of fifty (50) percent (%) or more of either

	  	  	
19.3  This Agreement shall be governed by and construed

	
554

	
(A) the then-outstanding shares of stock of the Owners and/or

	  	  	
in accordance with the laws of the place mutually agreed by

	
555

	
the Owners' ultimate parent or (B) the combined voting power of

	  	  	
the parties and any dispute arising out of or in connection

	
556

	
the then-outstanding voting securities of the Owners and/or the

	  	  	
with this Agreement shall be referred to arbitration at a

	
557

	
Owners' ultimate parent entitled to vote generally in the election

	  	  	
mutually agreed place, subject to the procedures applicable

	
558

	
of directors;

	  	  	
there.

	
559

	
(ii)  The consumation of a reorganization, merger or

	  	  	
19.4  If Box 18 in Part I is not appropriately filled in, sub-

	
560

	
consolidation of the Owners and/or the Owners' ultimate parent

	  	  	
clause 19.1 of this Clause shall apply.

	
561

	
or the sole or other disposition of all or substantially all of the

	  	  	  	  
	
assets of the Owners and/or the Owners' ultimate parent;

	  	  	
Note:  19.1, 19.2 and 19.3 are alternatives; indicate

	
562

	
(iii)  The approval by the shareholders of the Owners and/or the

	  	  	
alternative agreed in Box 18.

	
563

	
Owners' ultimate parent of a complete liquidation or dissolution

	  	  	  	  
	
of the Owners and/or the Owners' ultimate parent

	  	  	
20.  Notices

	
564

	  	  	  	
20.1  Any notice to be given by either party to the other

	
565

	
Further, for the purpose of this Agreement "Termination

	  	  	
party shall be in writing and may be sent by fax, telex,

	
566

	
Payment" means a payment to be received by the Manager in

	  	  	
registered or recorded mail or by personal service.

	
567

	
the event of Change of Control. Such payment shall be equal to

	  	  	
20.2  The address of the Parties for service of such

	
568

	
the estimated remaining fees payable to the Manager under the

	  	  	
communication shall be as stated in Boxes 19 and 20,

	
569

	
then current term of the agreement but in any case shall not be

	  	  	
respectively.

	
570

	
less than for a period of thirty-six (36) months and not more

	  	  	  	  
	
than a period of forty-eight (48) months.

	  	  	
21.  Other Fees

	  
	  	  	  	
21.1  Incentive Fee

	  
	
19.  Law and Arbitration

	
501

	  	
At their sole discretion the Owners on an annual basis in order

	  
	
19.1  This Agreement shall be governed by and construed in

	
502

	  	
to provide the Managers with a performance incentive, may

	  
	
accordance with English law and any dispute arising out of or

	
503

	  	
make a payment to the Managers of an incentive fee in addition

	  
	
in connection with this Agreement shall be referred to arbitration

	
504

	  	
to the management fee.

	  
	
in London in accordance with the Arbitration Act 1996 or

	
505

	  	
21.2  Chartering

	  
	
any statutory modification or re-enactment thereof save to

	
506

	  	
One and a quarter per cent (1.25%) of all monies earned by the

	  
	
the extent necessary to give effect to the provisions of this

	
507

	  	
Vessel. Such fee will be payable in USD. For the avoidance of

	  
	
Clause.

	
508

	  	
any doubt and regardless of Clause 8.5, chartering commissions

	  
	
The arbitration shall be conducted in accordance with the

	
509

	  	
shall survive the termination of this agreement under all

	  
	
London Maritime Arbitrators Association (LMAA) Terms

	
510

	  	
circumstances until the termination of the charter party in force

	  
	
current at the time when the arbitration proceedings are

	
511

	  	
at the time or termination of any other employment arranged

	  
	
commenced.

	
512

	  	
previous to the termination date.

	  
	
The reference shall be to three arbitrators. A party wishing

	
513

	  	
21.3  Sale and Purchase

	  
	
to refer a dispute to arbitration shall appoint its arbitrator

	
514

	  	
One percent (1%) of any sale of the Vessel including 1% for the

	  
	
and send notice of such appointment in writing to the other

	
515

	  	
initial purchase of the Vessel, including vessels under

	  
	 	 	 	
construction.  Such fee shall be payable in USD.

	 

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

 

 

SK 25754 0002 1187058d1187080_ex4-8.htm

 

EXHIBIT 4.8

 

 

SHARE PURCHASE AGREEMENT

This Share Purchase Agreement ("Agreement"), dated as of 1st of April 2011, is made by and between OCEANFREIGHT INC., a corporation organized under the laws of the Republic of the Marshall Islands ("Buyer"), and HAYWOOD FINANCE LIMITED, a corporation organized under the laws of the Republic of the Marshall Islands (the "Seller").

RECITALS

WHEREAS, the Seller directly owns shares, constituting all of the issued and outstanding capital stock of AMAZON SHAREHOLDERS LIMITED, a corporation organized under the laws of the Republic of the Marshall Islands ("Amazon Shareholders"), which in turn is the direct owner of all of the issued and outstanding capital stock of AMAZON OWNING COMPANY LIMITED, a corporation organized under the laws of the Republic of the Marshall Islands (the "Owner");

WHEREAS, the Owner has purchased a 206,000 dwt Very Large Ore Carrier (VLOC) identified as Hull 1239 (the "Vessel"), currently under construction at Shanghai Jiangnan-Changxing Shipbuilding Company Limited (the "Yard"), pursuant to a Shipbuilding Contract dated 17th May 2010, as amended, made by and among the Yard and China Shipbuilding Trading Company Limited as seller (the "Builder") and the Owner as purchaser (the "Shipbuilding Contract");

WHEREAS, Seller wishes to sell and Buyer wishes to buy, all of the issued outstanding capital stock of Amazon Shareholders (the "Shares"), on the terms and conditions contained herein;

NOW, THEREFORE, in consideration of the premises and the respective representations, warranties, covenants and agreements stated herein, the parties agree as follows:

ARTICLE I

DEFINITIONS

Capitalized terms used in this Agreement have the meanings specified in (a) the preamble, (b) the recitals, (c) this Article I or (d) elsewhere in this Agreement, as the case may be:

Claim means any claim, demand, assessment, judgment, order, decree, action, cause of action, litigation, suit, investigation or other Proceeding.

Companies means Amazon Shareholders Limited and Amazon Owning Company Limited.

Constitutional Documents means all constituent documents of the Seller and each of the Companies, including their respective Articles of Incorporation and By-Laws.

Contract means any loan or credit agreement, note, bond, mortgage, indenture, lease, sublease, purchase order or other agreement, commitment, instrument, permit, concession, franchise or license, written or oral.

Corporate Records means (a) the Constitutional Documents of the Companies; and (b) all minutes of meetings and resolutions of stockholders and directors of the Companies.

Governmental Body means any (a) nation, state, country, city, town, village, district, or other jurisdiction of any nature, (b) federal, state, local, municipal, foreign, or other government, (c) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), (d) multinational governmental organization or body, or (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature.

 

  

  

  

 

Laws means all statutes, treaties, codes, ordinances, decrees, rules, regulations, municipal bylaws, judicial or arbitral or administrative or ministerial or departmental or regulatory judgments, orders, decisions, rulings or awards, policies, certificates, codes, licenses, permits, approvals, guidelines, voluntary restraints, inspection reports, or any provisions of such laws, including general principles of common law and equity and the requirements of all Governmental Bodies, binding or affecting the Person referred to in the context in which such word is used; and "Law" means any one of them.

 

Lien means (whether the same is consensual or nonconsensual or arises by contract, operation of law, legal process or otherwise): (i) any mortgage, lien, security interest, pledge, attachment, levy or other charge or encumbrance of any kind thereupon or in respect thereof; or (ii) any other arrangement under which the same is transferred, sequestered or otherwise identified with the intention of subjecting the same to, or making the same available for, the payment or performance of any liability in priority to the payment of the ordinary, unsecured creditors, and which under applicable law has the foregoing effect, including any adverse Claim.

 

Orders means judgments, writs, decrees, compliance agreements, injunctions, rules, awards, settlement agreements or orders of any Governmental Body or arbitrator.

Person means any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization, government or agency or subdivision thereof or any other entity.

Proceeding means an action, suit, litigation, claim, investigation, legal, administrative or arbitration proceeding.

ARTICLE II

PURCHASE OF SHARES; CLOSING

Section 2.1  Purchase of Shares. Upon the terms and subject to the conditions of this Agreement, and on the basis of the representations and warranties hereinafter set forth, the Seller agrees to sell, transfer, convey, assign and deliver to the Buyer, and the Buyer agrees to acquire and buy from the Seller, the Shares, free and clear of all Liens.

Section 2.2  Closing. To be mutually agreed between the Seller and the Buyer.

Section 2.3  Purchase Price. The purchase price for the Shares that shall be paid to the Sellers on the Closing Date shall consist of an amount 17,828,571 common shares of the Buyer.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER

The Seller hereby represents and warrants to the Buyer on the date hereof and as of the Closing Date as follows:

Section 3.1  Organization of the Seller.  (a) The Seller is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted.

Section 3.2  Organization of the Companies.  (a) Each of the Companies is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted.  (b) The Seller has heretofore delivered to the Buyer complete and correct copies of the Constitutional Documents of the Companies as currently in effect and the other Corporate Records.  The Corporate Records are accurate in all material respects and all corporate proceedings and actions reflected therein have been conducted or taken in compliance with all applicable Laws and in compliance with the Constitutional Documents. None of the Companies is in default under or in violation of its Constitutional Documents.

  

  

  

 

 

Section 3.3  Authority of the Seller.  (a) The Seller has full legal capacity, right, power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (b) the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all requisite corporate action taken on the part of the Seller and no other corporate proceedings on the part of the Seller is necessary to authorize this Agreement or to consummate the transactions contemplated hereby; and (c) that this Agreement has been duly and validly executed and delivered by the Seller and constitutes a valid and binding obligation of the Seller, enforceable against it in accordance with its terms.

 

Section 3.4  Consents and Approvals; No Violation, With Respect to the Seller.  Neither the execution and delivery of this Agreement by the Seller nor the consummation of the transactions contemplated by this Agreement will (a) conflict with or result in any breach of any provision of Constitutional Documents of the Seller; (b) require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Body other than those that have been made or obtained; (c) result in a default (or give rise to any right of amendment, termination, cancellation, consent, acceleration or loss of a material benefit) under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Seller or any of its assets may be bound, except in such cases where the requisite waivers or consents have been obtained; (d) result in the creation of any Lien upon any of the properties or assets of the Seller under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Seller or any of its assets may be bound or affected; or (e) violate any Law or Order applicable to the Seller or its assets.Section 3.5  Consents and Approvals; No Violation, With Respect to the Companies.  Neither the execution and delivery of this Agreement by the Seller nor the consummation of the transactions contemplated by this Agreement will (a) conflict with or result in any breach of any provision of the Constitutional Documents of the Companies; (b) require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Body other than those that have been made or obtained; (c) result in a default (or give rise to any right of amendment, termination, cancellation, consent, acceleration or loss of a material benefit) under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Companies or any of their assets may be bound, except in such cases where the requisite waivers or consents have been obtained; (d) result in the creation of any Lien upon any of the properties or assets of the Companies under the terms, conditions or provisions of any Contract, instrument or other obligation to which the Companies or any of their assets may be bound or affected; or (e) violate any Law or Order applicable to the Companies or their assets.

Section 3.6  Capitalization.  (a) Schedule 3.6 sets forth the amount of authorized capital stock and the amount of the issued and outstanding shares of capital stock of the Companies.  The Shares constitute all of the issued and outstanding common shares of Amazon Shareowners; all such common shares are duly authorized, validly issued, fully paid and non-assessable and are owned legally and beneficially by the Seller, as set forth on Schedule 3.6.  Other than this Agreement, there is no subscription, option, warrant, preemptive right, call right or other right, agreement or commitment of any nature relating to the voting, issuance, sale, delivery or transfer (including any right of conversion or exchange under any outstanding security or other instruments) by the Seller of the Shares, and there is no obligation on the part of the Seller to grant, extend or enter into any of the foregoing.

 

(b)  Amazon Shareholders is the legal and beneficial owner of all of the issued and outstanding shares of the Owner; all such common shares are duly authorized, validly issued, fully paid and non-assessable.  There is no subscription, option, warrant, preemptive right, call right or other right, agreement or commitment of any nature relating to the voting, issuance, sale, delivery or transfer (including any right of conversion or exchange under any outstanding security or other instruments) by Amazon Shareholders of the shares of the Owner and there is no obligation on the part of Amazon Shareholders to grant, extend or enter into any of the foregoing.  Amazon Shareholders does not, directly or indirectly, own any capital stock of or other equity interest in any Person other than as set forth on Schedule 3.6.

Section 3.7  Ownership of Purchased Shares.  The Seller owns and holds the Shares free and clear of all Liens or other limitations affecting the Seller's ability to vote such shares or to transfer such shares to the Buyer. At the Closing, the Seller will transfer, assign and transmit good and marketable title to and deliver the Shares to the Buyer, free and clear of all Liens.

 

Section 3.8  Ownership of the Shares of the Owner.  (a) Amazon Shareholders owns and holds the shares of the Owner free and clear of all Liens or other limitations affecting Amazon Shareholder's ability to vote such shares or to transfer such shares. At the Closing, the shares of the Owner will be free and clear of all Liens.

  

  

  

 

Section 3.9  Financial Statements. Set forth as Schedule 3.9 are the management financial statements of Amazon Shareholders as of December 31, 2010.

 

Section 3.10  No Undisclosed Liabilities. Except as set forth on Schedule 3.10, none of the Companies will have any Liabilities at Closing.

Section 3.11  Contracts.  (a) All Contracts to which the Companies, or any of them, is a party or bound by, is set forth on Schedule 3.11 and there is not, under any Contract, any default or event which, with notice or lapse of time, or both, would constitute a material default on the part of any of the parties thereto, except such events of default and other events as to which requisite waivers or consents have been obtained, and all such Contracts are in full force and effect, constitute the legal and binding obligations of the respective parties thereto, and have not been modified or amended, except as set forth on Schedule 3.11, and true and correct copies of such Contracts are appended thereto.

(b)  All amounts due as of the date hereof under the Shipbuilding Contract and any related supervision or other ancillary agreements have been paid.

(c)  To the best knowledge of the Seller, no counterparty to any Contract to which the Companies, or any of them, is a party is in default under any such Contract.

Section 3.12  No Other Business. (a) Amazon Shareholders has not conducted any business other than the ownership of the Owner; and (b) the Owner has not conducted any business other than the purchase of Hull 1239.

Section 3.13  Proceedings With Respect to the Seller. There is no Claim or Proceeding which is pending, or to the knowledge of the Seller, there is no Claim or Proceeding threatened in writing, against or relating to the Seller, before any Governmental Body nor is the Seller subject to or bound by any outstanding Order.

Section 3.14  Proceedings With Respect to the Companies.  There is no Claim or Proceeding which is pending, or to the knowledge of the Sellers, there is no Claim or Proceeding threatened in writing, against or relating to the Companies, or any of them, before any Governmental Body and none of the Companies is subject to or bound by any outstanding Order.

Section 3.15  No Unlawful Payments. None of the Companies, nor any director, shareholder, officer, agent, employee or other person associated with or acting on behalf of the Companies, has: (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; or (iii) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any supplier, customer, licensor, contractor, politician, government employee or other Person.

Section 3.16  Bank Accounts. Schedule 3.16 sets forth a complete and accurate list of all bank accounts, savings deposits, money-market accounts, certificates of deposit, safety deposit boxes, and similar investment accounts with banks or other financial institutions maintained by or on behalf of the Companies showing the depository bank or institution address, appropriate bank contact personnel, account number and names of signatories.

 

Section 3.17  Full Disclosure. No representation or warranty by the Seller in this Agreement and no statement contained in any document or other writing furnished or to be furnished to the Buyer pursuant to the provisions hereof, when considered with all other such documents or writings, contain or will contain any untrue statement of material fact or omits or will omit to state any material fact necessary in order to make the statements made herein or therein not misleading.

Section 3.18  Accredited Investor. The Seller and any nominee thereof is an "Accredited Investor" within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the "Securities Act").

 

Section 3.19  Acquiring Shares for Own Account. The Seller and any nominee thereof is acquiring the Shares from the Company for its own account solely for the purpose of investment and without a view to any resale or other distribution thereof in violation of the Securities Act of 1933, as amended.

Section 3.20  Knowledge in Business. The Seller and any nominee thereof has sufficient knowledge and experience in business, financial and investment matters so as to be able to evaluate the risks and merits of its investment in the Buyer and it is able financially to bear the risks thereof.

  

  

  

 

 

Section 3.21  No General Solicitation. Neither the Seller nor any nominee thereof has been offered any Shares by any means of general solicitation or advertising, including any of the following:

(a)  any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio, or

(b)  any seminar or meeting whose attendees have been invited by general solicitation or advertising.

 

Section 3.22  Access to Information. The Seller and any nominee thereof had access to such information regarding the Buyer and its affairs as is necessary to enable it to evaluate the merits and risks of an investment in the Shares.

Section 3.23  Purchaser Acknowledgement. The Seller and any nominee thereof acknowledges that (i) the Shares are "restricted securities," as defined in Rule 144 under the Securities Act, (ii) a stop transfer order will be in effect and (iii) the Shares cannot not be sold, transferred, pledged or hypothecated in the absence of an effective registration statement for such securities under the Securities Act or an opinion of counsel satisfactory to the Buyer that registration is not required under the Securities Act.

Section 3.24  Holding Period. Seller, or its nominee, as the case may be, will hold the Shares subject to all of the applicable provisions of the Securities Act and the rules and regulations promulgated thereunder and will not at any time make any sale, transfer or other exchange thereof in contravention of the Securities Act or such rules and regulations, or any applicable state securities or "blue sky" laws.

Section 3.25  Restrictive Legend. Buyer has made the Seller aware that a legend will be placed on the share certificates stating that the Shares have not been registered under the Securities Act and referring to the restrictions on transferability and sale of the Shares.

Section 3.26  Each certificate for the Shares shall have conspicuously written, printed, typed or stamped upon the face thereof, or upon the reverse thereof with a conspicuous reference on the face thereof, the following legend:

Section 3.27  "THE SHARES OF COMMON STOCK REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND COMPLIANCE WITH SUCH STATE LAWS OR (II) AN APPLICABLE EXEMPTION THEREFROM AND AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED."

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to the Sellers as of the date hereof and as of the Closing Date as follows:

Section 4.1  Organization.  Buyer is a corporation duly organized, validly existing and in good standing under the laws of the Republic the Marshall Islands and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now conducted.

Section 4.2  Authority.  (a) Buyer has the full legal capacity, right, power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby; (b) the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all requisite corporate action taken on the part of the Buyer and no other corporate proceedings on the part of the Buyer is necessary to authorize this Agreement or to consummate the transactions contemplated hereby; and (c) this Agreement has been duly and validly executed and delivered by the Buyer and constitutes a valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms.

Section 3.20  Knowledge in Business. The Seller and any nominee thereof has sufficient knowledge and experience in business, financial and investment matters so as to be able to evaluate the risks and merits of its investment in the Buyer and it is able financially to bear the risks thereof.

 

  

  

  

 

 

Section 4.3  Consents and Approvals; No Violation.  Neither the execution and delivery of this Agreement by Buyer, nor the consummation of the transactions contemplated by this Agreement, nor the performance by Buyer of its obligations under this Agreement will (a) conflict with or result in any breach of any provision of the corporate organizational documents of the Buyer; (b) require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Body other than those which have been made or obtained; or (c) result in a default (or give rise to any right of termination, cancellation, consent or acceleration) under any of the terms, conditions or provisions of any Contract to which Buyer is a party or by which its assets may be bound, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite waivers or consents have been obtained; or (d) violate any Order or Law applicable to Buyer or any of its assets.

 

Section 4.4  Validity. There is no investigation, claim, proceeding or litigation of any type pending or, threatened to which Buyer is a party that (i) relates, or may relate, to the validity or enforceability of any of the Buyer's obligations under this Agreement or (ii) seeks (or reasonably might be expected to seek) (A) to prevent or delay the consummation by the Buyer of the transactions contemplated by this Agreement or (B) damages in connection with any such consummation.

Section 4.5  OceanFreight Shares.  At the Closing, the Buyer shall deliver 17,828,571 common shares of the Buyer and which such shares of Buyer common stock shall be issued free and clear of all Liens.

 

ARTICLE V

COVENANTS

Section 5.1  Conduct of Business Pending Closing.  Buyer and Seller agree that between the date of the execution of this Agreement and the Closing Date, (i) the Seller shall conduct the business and maintain and preserve the assets of the Seller in the ordinary course of business; (ii) the Buyer and the Seller shall use their reasonable efforts to cause all of the representations and warranties in Article III hereof to continue to be true and correct; and (iii) none of the Companies shall incur any debt without the Buyer's prior written approval.

Section 5.2  Further Assurances.  The Seller shall execute, acknowledge and deliver or cause to be executed, acknowledged and delivered to the Buyer such assignments or other instruments of transfer, assignment and conveyance, in form and substance reasonably satisfactory to Buyer, as shall be necessary to vest in Buyer all of the right, title and interest in and to the Shares undertaken to be sold to Buyer by the Seller pursuant to this Agreement, free and clear of all Liens, debts, dues and duties of whatsoever nature, and any other document reasonably requested by the Buyer in connection with this Agreement.

Section 5.3  Governmental Filings.  As promptly as practicable after the execution of this Agreement, each party shall, in cooperation with the other, file any reports or notifications that may be required to be filed by it under applicable law, if any.

 

Section 5.4  Further Consents.  After the Closing Date, the Seller shall obtain any consents or approvals or assist in any filings reasonably required in connection with the transactions contemplated hereby that are requested by Buyer and that have not been previously obtained or made.

Section 5.5  Public Announcements.  Neither party shall, without the prior approval of the other party, issue, or permit any of its partners, stockholders, directors, officers, employees, members, managers, agents to issue, any press release or other public announcement with respect to this Agreement or the transactions contemplated hereby, except as may be required by Law or any Governmental Body to which the relevant party is accountable.

 

ARTICLE VI

INDEMNIFICATION

Section 6.1  Seller's Indemnity Obligations.  The Seller agrees to indemnify the Buyer against, and hold the Buyer harmless from and against, any amounts that arise from, are based on or relate or otherwise are attributable to (a) any error, inaccuracy, breach or misrepresentation in any of the representations and warranties made by or on behalf of the Seller in this Agreement, (b) any violation or breach by the Seller of or default by the Seller under the terms of this Agreement.  Buyer shall be entitled to recover its reasonable and necessary attorneys' fees and litigation expenses incurred in connection with successful enforcement of its rights under this Section 6.1.

  

  

  

 

Section 6.2  Buyer's Indemnity Obligations.  Buyer shall indemnify the Seller against, and hold the Seller harmless from and against, any and all amounts that arise from, are based on or relate or otherwise are attributable to (a) any error, inaccuracy, breach or misrepresentation in any of the representations and warranties made by or on behalf of the Buyer in this Agreement, (b) any violation or breach by the Buyer of or default by Buyer under the terms of this Agreement. The Seller shall be entitled to recover its reasonable and necessary attorneys' fees and litigation expenses incurred in connection with successful enforcement of its rights under this Section 6.2.

Section 6.3  Survival of Indemnity Obligation.  The rights and duties contained in this Article VI shall survive the Closing.

 

ARTICLE VII

CONDITIONS TO CLOSING

Section 7.1  Conditions to Obligations of Buyer.  The obligations of the Buyer to consummate the transactions contemplated herein are subject, at the option of the Buyer, to satisfaction of the following conditions:

(a)  Compliance.  The Seller shall have complied with its covenants and agreements contained herein, and the representations and warranties contained in Article III hereof shall be true and correct in all material respects (except those representations and warranties qualified by materiality shall be true and correct in all respects) on the date hereof and as of the Closing Date.

(b)  Orders, Etc.  No action, suit or proceeding shall have been commenced or shall be pending or threatened, and no statute, rule, regulation or order shall have been enacted, promulgated, issued or deemed applicable to the transactions contemplated by this Agreement, by any Governmental Body or court that reasonably may be expected to prohibit consummation of the transactions contemplated by this Agreement.

(c)  Consents.  All consents and approvals required in connection with the execution, delivery and performance of this Agreement shall have been obtained.

 

Section 7.2  Conditions to Obligations of the Seller. The obligations of the Seller to consummate the transactions contemplated herein are subject, at the option of the Seller, to satisfaction of the following conditions:

(a)  Compliance.  Buyer shall have complied with its covenants and agreements contained herein, and the representations and warranties contained in Article IV hereof shall be true and correct in all material respects (except those representations and warranties qualified by materiality shall be true and correct in all respects) on the date hereof and as of the Closing Date.

(b)  Orders, Etc.  No action, suit or proceeding shall have been commenced or shall be pending or threatened, and no statute, rule, regulation or order shall have been enacted, promulgated, issued or deemed applicable to the transactions contemplated by this Agreement, by any Governmental Body or court that reasonably may be expected to prohibit consummation of the transactions contemplated by this Agreement.

(c)  Consents.  All consents and approvals required in connection with the execution, delivery and performance of this Agreement shall have been obtained.

(d)  Counter Guarantee. On the Closing Date the Buyer shall deliver to Cardiff Marine Inc. a counter guarantee substantially in the form attached as Appendix A hereto in relation to the Payment Guarantee issued by Cardiff Marine Inc. to the Builder and dated 12th June 2010 guaranteeing the performance of the Owner under the Shipbuilding Contract.

 

ARTICLE VIII

TERMINATION

Section 8.1  Grounds for Termination.   This Agreement may be terminated at any time prior to the Closing Date:

(a)  By the mutual written agreement of the Buyer and the Seller;

(b)  By Buyer if any of the conditions set forth in Section 7.1 hereof shall have become incapable of fulfillment and shall not have been waived by Buyer;

  

  

  

 

(c)  By the Seller if any of the conditions set forth in Section 7.2 hereof shall have become incapable of fulfillment and shall not have been waived by the Seller;

(d)  By either party by written notice thereof to the other, if the Closing contemplated hereby shall not have been consummated on or before December 31, 2011 or such other date, if any, as the Buyer and the Seller shall agree upon in writing; or

 

(e)  By the Buyer or the Seller if the consummation of the transactions contemplated hereby would violate any nonappealable final order, decree or judgment of any court or Governmental Body having competent jurisdiction enjoining, restraining or otherwise preventing, or awarding substantial damages in connection with, or imposing a material adverse condition upon, the consummation of this Agreement or the transactions contemplated hereby; provided, however, that a party shall not be allowed to exercise any right of termination pursuant to this Section 8.1 if the event giving rise to such termination right shall be due to the negligent or willful failure of the party seeking to terminate this Agreement to perform or observe in any material respect any of the covenants or agreements set forth herein to be performed or observed by such party.

 

ARTICLE IX

GENERAL PROVISIONS

Section 9.1  Entire Agreement.  This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof.  This Agreement may not be modified, amended or terminated except by a written instrument specifically referring to this Agreement signed by all the parties hereto.

Section 9.2  Waivers and Consents.  All waivers and consents given hereunder shall be in writing.  No waiver by any party hereto of any breach or anticipated breach of any provision hereof by any other party shall be deemed a waiver of any other contemporaneous, preceding or succeeding breach or anticipated breach, whether or not similar.  Except as provided in this Agreement, no action taken pursuant to this Agreement, including any investigation by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement.

Section 9.3  Notices.   All notices and other communications hereunder shall be in writing and shall be deemed to have been received only if and when (a) personally delivered, (b) on the fifth day after mailing, by mail, first class, postage prepaid or by certified mail return receipt requested, addressed in each case as follows (or to such other address as may be specified by like notice), (c) at the time receipt is acknowledged when delivered by private mail or courier service or (d) received by facsimile at the phone number listed below:

(a)  If to Buyer to:

	
  

	
c/o Poles Tublin Stratakis & Gonzalez

	
  

	
46 Trinity Place

	
  

	
New York, NY 10006

	
  

	
Tel: +1 212 943 0110

	
  

	
Fax: +1 212 269 9875

(b)  If to Seller to:

	
  

	
c/o Cefai & Associates

	
  

	
5/2 Merchant Street, Valletta

	
  

	
Malta VLT 10

 

  

  

  

 

 

Section 9.4  Assignments, Successors and No Third-Party Rights.   No party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other party; provided that the Buyer may assign its rights hereunder to any wholly-owned subsidiary. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the parties.

Section 9.5  Choice of Law; Resolution of Disputes.   This Agreement shall be governed by and construed under the laws of the State of New York without regard to choice of law principles.  All disputes, differences, controversies or claims arising out of or in connection with this Agreement shall be arbitrated in New York in the following manner.  One arbitrator is to be appointed by each of the parties hereto and the two appointed arbitrators shall appoint a third arbitrator.  Their decision or that of any two of them shall be final.  The arbitrators shall be commercial persons, conversant with shipping matters.  Such arbitration is to be conducted in accordance with the rules and on the terms current at the time when the arbitration proceedings are commenced and in accordance with the Society of Maritime Arbitrators, Inc.

Section 9.6  Construction; Section Headings.   The language used in this Agreement shall be deemed to be the language the parties hereto have chosen to express their mutual intent, and no rule of strict construction will be applied against any party hereto.  The section headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

Section 9.7  Severability.  Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only as broad as is enforceable.

Section 9.8  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

 

 

  

  

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

For the Buyers

By:   /s/ Demetris Nenes      

Name: Demetris Nenes

Title:   Attorney-in-fact

For the Seller

By: /s/ Dr. Clarissa Cefai      

Dr. Clarisa Cefai

Director

MARE SERVICES LIMITED

5/1 MERCHANTS STREET

VALLETA VLT 1171

Title:   Sole Director

 

 

SK 25754 0002 1187080

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