Sale or scrapping of Ships Clause Samples

Sale or scrapping of Ships. If within 10 Business Days after the date of the expiration of the Existing Charter (the "Charter Expiration Date") in relation to each Ship, that Ship is not employed under a charter at a net daily charter hire rate exceeding $10,000 and on such other terms in all respects acceptable to the Lenders, the Borrower owning that Ship shall: (a) with the prior consent of the Lenders, sign an MOA within 15 Business Days from the Charter Expiration Date and sell such Ship within 15 Business Days from the signing of that MOA and the Borrowers shall ensure that the Net Proceeds are applied in prepayment of the Loan in accordance with Clause 8.10(b) and payment of all other amounts due to the Creditor Parties under the Finance Documents and the Master Agreement and, any balance, to be applied in prepayment of the Syndicate Loan in accordance with Clause 8.10(b)(ii) of the Syndicate Loan Agreement (together, the "Proceeds Payments"); and (b) keep the Agent updated regularly regarding the sale or scrapping process of that Ship and any offers received for the sale or scrapping of that Ship (including, without limitation, the price offered, the identity of the relevant buyer and the main terms of the offer). On the Delivery Date and upon the successful conclusion of the sale of the Ships and following the making of the Proceeds Payments in respect of both Ships in full in accordance with paragraph (a) above and the payment in full by the Borrowers of any legal fees and expenses outstanding in connection with the Loan Agreement, the Creditor Parties shall deliver the duly executed Deed of Release to the Borrowers, the Approved Manager, the Corporate Guarantor and Seacommercial.