Memorandum of Agreement for Sale and Purchase of the Vessel 'SEMINOLE PRINCESS' between Fairfax Shipping Corp. and Adirondack Shipping LLC
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This agreement, dated January 24, 2007, is between Fairfax Shipping Corp. (the seller) and Adirondack Shipping LLC (the buyer), both registered in the Marshall Islands. It sets out the terms for the sale and purchase of the vessel 'SEMINOLE PRINCESS' for $45 million as part of a sale/charter-back arrangement. The contract details inspection rights, payment terms, delivery conditions, and procedures for handling delays or defects. The agreement is binding once inspections are completed and accepted, with specific provisions for cancellation and remedies if delivery is delayed or the vessel is not as agreed.
EX-10.1 8 ex10-1.htm MOA ON SALE OF THE SEMINOLE PRINCESS MOA on sale of the SEMINOLE PRINCESS EXHIBIT 10.1
Norwegian Shipbrokers' Association's Memo-
random of Agreement for sale and purchase of
ships. Adopted by the Baltic and International
Maritime Council (BIMCO) in 1956.
Code-name
SALEFORM 1993
Revised 1968,1983 and 1986/87.
MEMORANDUM OF AGREEMENT
Dated: as of January 24, 2007
Fairfax Shipping Corp., Majuro, Marshall Islands hereinafter called the Sellers, have agreed to sell, and | 1 | |||
Adirondack Shipping LLC, Majuro, Marshall Islands hereinafter called the Buyers, have agreed to buy | 2 | |||
Name: | “SEMINOLE PRINCESS” | 3 | ||
Classification Society/Class: Lloyd’s Register | 4 | |||
Built: 1997 By: Dalian S.B. Heavy Industry Co., Ltd., China | 5 | |||
Flag: Phil/Pan Place of Registration: Manila/Panama | 6 | |||
Call Sign: DYPA/3EIE6 Grt/Nrt: 19,354/9,614 | 7 | |||
Register Number: MNLA000678/35009-PEXT | 8 | |||
hereinafter called the Vessel, on the following terms and conditions: | 9 | |||
Definitions | 10 | |||
“Charter” as defined in Clause 17 | 11 | |||
“Banking Days” as defined in the Charter. | 12 | |||
“In writing” or “written” means a letter handed over from the Sellers to the Buyers or vice versa, | 13 | |||
a registered letter, telefax or other modern form of written communication. | 14 | |||
“Classification Society” or “Class” means the Society referred to in line 4 | 15 | |||
1. Purchase Price $45 Million En Bloc for the Vessel and the Laguna Belle as part of sale/charter back Arrangement. See Clause 17. | 16 | |||
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3. Payment | 25 | |||
The said Purchase Price shall be paid in full free of bank charges to Sellers, less: (i) Sellers’ Credit per Clause 32 of the Charter; and (ii) the balance of the 2% fee per clause 49(1)(b) of the Charter | 26 | |||
4. Inspections | 30 | |||
a)* The Buyers have inspected and accepted the Vessel’s classification records. The Buyers | 31 | |||
have also inspected the Vessel | 32 | |||
and have accepted the Vessel following this inspection and the sale is outright and definite, | 33 | |||
and subject only to the terms and conditions of this Agreement. | 34 | |||
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5. Notices, time and place of delivery | ||||
a) The Vessel will be delivered on a mutually convenient agreed date as she is at such port or place as the Vessel may be located on the agreed date. | 51 | |||
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Date of cancelling (see Clause 5c) and 14): February 1, 2007 | 61 | |||
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7. Spares/bunkers, etc. | 154 | |||
The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on shore. | 155 | |||
All spare parts and spare equipment including spare tail-end shaft(s) and/or spare | 156 | |||
propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or unused, | 157 | |||
whether on board or not shall become the Buyers’ property, but spares on order are to be | 158 | |||
excluded. Forwarding charges, if any, shall be for the Buyers’ account. The Sellers are not required to | 159 | |||
replace spare parts including spare tail-end shaft(s) and spare propeller(s)/propeller blade(s) which | 160 | |||
are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the | 161 | |||
property of the Buyers. The radio installation and navigational equipment shall be included in the sale | 162 | |||
without extra payment if they are the property of the Sellers. | | |||
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8. Documentation See Addendum No. 1 | 175 | |||
The place of closing: New York. | 176 | |||
In exchange for payment of the Purchase Price the Sellers shall furnish the Buyers at the Closing with the following documents: | 178 | |||
a) Legal Bill of Sale in a form recordable in Panama (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. | ||||
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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) Any such additional documents as may reasonably be required by the competent authorities | 194 | |||
for the purpose of registering the Vessel, provided the Buyers notify the Sellers of any such | 195 | |||
documents as soon as possible after the date of this Agreement. | ||||
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At the time of delivery the Buyers and Sellers shall sign and deliver to each other a Protocol of | 197 | |||
Delivery and Acceptance confirming the date and time of delivery of the Vessel from the Sellers to the | 198 | |||
Buyers. | 199 | |||
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9. Encumbrances | 207 | |||
The Sellers warrant that the Vessel, at the time of delivery, is free from all mortgages. | ||||
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11. Condition on delivery | 216 | |||
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 as she was at the time of inspection, fair wear and tear expected. However, the Vessel shall be delivered with her class maintained free of conditions and recommendations (other than those for which the time presented by class for curing the condition of recommendation has not passed), with certificates valid and up to date. | ||||
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16. Arbitration | ||||
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b)* This Agreement shall be governed by and construed in accordance with Title 9 of the | 271 | |||
United States Code and the Law of the State of New York and should any dispute arise out of | 272 | |||
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 shall be appointed by the Chair at the time of the Arbitration Committee of the Maritime Law Association of the United States. The third arbitrator shall serve as chair of the panel and shall be a practicing maritime attorney. The decision of the arbitrators or that of any two of them shall be final, and for purpose of enforcing any award, judgment may be entered thereon by any court having jurisdiction. The proceedings shall be conducted in accordance with the rules of the Society of Maritime Arbitrators, Inc. New York. | 273 | |||
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17. This MOA is one element of the sale/charter back agreement, which includes a Bareboat Charter Party dated as of January 24, 2007. Simultaneously upon delivery of the Vessel to the Buyers, the Vessel will be delivered to the Sellers/Charterers under the Bareboat Charter Party dated as of January 24, 2007 (the “Charter”). The Vessel will thus remain in the control and responsibility of the Sellers/Charterers under the Charter, at all times before and after delivery to the Buyers hereunder and the Buyers shall in no way be responsible for any costs, expenses, documents or delays to the Vessel arising out of the delivery hereunder. Any provisions, spares and bunkers shall remain the property and in the possession of the Sellers. | ||||
FOR THE SELLERS: | FOR THE BUYERS: |
Signed: /s/ Christophil B. Costas | Signed: /s/ Carol Ann Malinowski |
Name: Christophil B. Costas | Name: /s/ Carol Ann Malinowski |
Title: Attorney-In-Fact | Title: Secretary |
Date: as of January 24, 2007 | Date: as of January 24, 2007 |
ADDENDUM NO. 1
To Memorandum of Agreement dated as of January 24, 2007
made by and between Fairfax Shipping Corp., as Sellers, and Adirondack Shipping LLC, as Buyers, of the M/V Seminole Princess.
Following additional documents to be presented by Sellers to Buyers upon delivery of the Vessel:
1. Sellers’ board resolutions
2. Sellers’ Shareholders’ resolutions ratifying board resolutions
3. Sellers’ Power of Attorney
4. Sellers’ Certificate of Goodstanding
5. Secretary’s Certificate stating Sellers’ directors/officers/shareholders
6. Commercial invoice
7. | Such other documents, terms and conditions as set forth in the Charter which are applicable to the transaction under this MOA |
Buyers shall deliver the following documents to Sellers upon delivery of the Vessel
1. Power of Attorney authorizing individuals to execute and deliver all documents
2. | Certificate of Resolutions approving the purchase of the Vessel from Sellers and authorizing and appointing individuals to act and authorizing issuance of Power of Attorney. |
/s/ Christophil B. Costas Fairfax Shipping Corp. | /s/ Carol Ann Malinowski Adirondack Shipping LLC |