Document:

Exhibit

Confidential    Execution Version

	
			
	 
	Dated 4 November                            2015
	 

	GOLAR ESKIMO CORPORATION
as Seller
GOLAR ESKIMO CORPORATION
as Bareboat Charterer
and
GOLAR LNG PARTNERS LP
as Guarantor
and
SEA 23 LEASING CO. LIMITED
as Buyer
SEA 23 LEASING CO. LIMITED
as Owner

	COMMON TERMS AGREEMENT
in respect of financing for “GOLAR ESKIMO”

Contents
Clause        Page
1Definitions    1
2Notices    21
3English Translations    21
4Partial Invalidity    21
5Confidentiality    22
6Counterparts    22
7Law and Jurisdiction    22

Schedule -  Administrative Details23

THIS COMMON TERMS AGREEMENT (this Agreement) is dated 4 November 2015 and made between:
		
	(1)
	GOLAR ESKIMO CORPORATION as Seller;

		
	(2)
	GOLAR ESKIMO CORPORATION as Bareboat Charterer;

		
	(3)
	GOLAR LNG PARTNERS LP as Guarantor;

		
	(4)
	SEA 23 LEASING CO. LIMITED as Buyer; and

		
	(5)
	SEA 23 LEASING CO. LIMITED as Owner.

WHEREAS
		
	(A)
	Pursuant to the Time Charter, the Seller has time chartered the Vessel “Golar Eskimo” to the Time Charterer.

		
	(B)
	Pursuant to the Time Charter Guarantee, the Time Charter Guarantor has guaranteed all the obligations of the Time Charterer under the Time Charter.

		
	(C)
	Not later than the Cancelling Date, Golar Eskimo Corporation as “Seller” will deliver the Vessel to Sea 23 Leasing Co. Limited as “Buyer” pursuant to the MOA, whereupon the Purchase Price will be made available.

		
	(D)
	Immediately upon Delivery of the Vessel by the Buyer to the Seller under the MOA, Sea 23 Leasing Co. Limited as “Owner” will deliver the Vessel to Golar Eskimo Corporation as “Bareboat Charterer” pursuant to the Bareboat Charter.

		
	(E)
	Golar MLP as “Guarantor” will guarantee to the Owner the performance of Golar Eskimo Corporation’s obligations under the Bareboat Charter and the MOA (subject to the terms and conditions set out in the Bareboat Charter Guarantee).

IT IS HEREBY AGREED as follows:

		
	1
	Definitions

		
	1.1
	The following defined terms shall be applicable to the Common Terms Documents as applicable:

Accounting Reference Date means 31 December or such other date as may be approved
Accounts Security Deed means the document constituting a first Security Interest by the Bareboat Charterer in each Operating Account in the agreed form.
Actual Purchase Price means the actual purchase price payable by the Buyer to the Seller on the Delivery Date in accordance with clause 5 of the MOA excluding, for the avoidance of doubt, the Initial Charter-hire.
Affiliate shall mean, in relation to any company or corporation, a Subsidiary of that company or corporation or a Holding Company of that company or corporation or any other Subsidiary of that Holding Company
Annual Financial Statements means audited consolidated annual financial statements for the Group as a whole
Approved Brokers has the meaning given to it in clause 41.3(c) of the Bareboat Charter
Approved Insurers has the meaning given to it in clause 41.3(c) of the Bareboat Charter
Approved Valuer means any company specified in the Approved Valuer List or any other company with similar expertise and qualifications appointed jointly by the Seller and the Buyer or, as the case may be, the Owner and the Bareboat Charterer
Approved Valuer List means any of Fearnleys, Braemar ACM Ship Broking and Clarksons Platou
Assignment of Time Charter Documents means the first priority assignment of Golar Eskimo's rights and interest under the Time Charter and the Time Charter Guarantee in respect of the Vessel executed by Golar Eskimo in form and substance satisfactory to the Owner acting reasonably
Authority means any national, supranational, regional, or local government or governmental, administrative, fiscal, judicial, or government-owned body, department, commission, authority, tribunal, agency or entity or central bank (or any person, whether or not government-owned and howsoever constituted or called, that exercises the functions of a central bank) in a Relevant Jurisdiction
Bareboat Charter means the bareboat charter in respect of the Vessel dated on or about the date hereof and entered into between the Owner and the Bareboat Charterer
Bareboat Charter Documents means the Bareboat Charter and the Bareboat Charter Guarantee
Bareboat Charter Guarantee means the full, on-demand irrevocable and unconditional guarantee provided by the Guarantor in favour of the Owner, to guarantee the performance of Golar Eskimo under the Bareboat Charter and the MOA
Bareboat Charterer means Golar Eskimo
Business Day means a day (other than Saturday or Sunday) on which banks are open for general business in Singapore, China and London and, if a payment in Dollars is to be made or would fall to be made by any person on that day, New York
Buyer means Sea 23 Leasing Co. Limited
Cancelling Date has the meaning given to that term in clause 4 of the MOA
Cash Equivalents means:
		
	(a)
	deposits with first class international banks the maturity of which does not exceed 12 months;

		
	(b)
	bonds, certificates of deposit and other money market instruments or securities issued or guaranteed by the Norwegian or United States Governments; and

		
	(c)
	any other instrument approved by the Owner

Change of Control occurs if: 
		
	(a)
	the Guarantor ceases to, on an aggregate basis, directly or  indirectly control at least 70% equity interest in Golar Eskimo; and

		
	(b)
	two or more persons acting in concert or any individual person (other than the parent):

		
	(i)
	acquires, legally and/or beneficially and either directly or indirectly, in excess of 50% of the issued share capital (or equivalent) of the Guarantor; or

		
	(ii)
	have the right or ability to control, either directly or indirectly, the affairs of the Guarantor (other than through the right or ability to appoint the majority of the board of directors (or equivalent) of the Guarantor or, following appointment, any continuing right or ability to exercise such control through the directors so appointed).

For the purposes of this definition, two or more persons are acting in concert if pursuant to an agreement or understanding (whether formal or informal) they actively co-operate, through the acquisition (directly or indirectly) of shares in the Guarantor by any of them, either directly or indirectly to obtain or consolidate control of the Guarantor
Charged Property means all of the assets of the Obligors which from time to time are, or are expressed or evidenced to be, the subject of the Security Documents
Charter Documents means
		
	(a)
	the Bareboat Charter Documents and any other guarantee or security given to or issued for the benefit of the Owner by any person for the Bareboat Charterer's obligations under them; and

		
	(b)
	the Time Charter, the Time Charter Guarantee and any other guarantee or security given to or issued for the benefit of the Bareboat Charterer by any person for the Time Charterer’s obligations under them

and in each case, includes any other deed, document, agreement or instrument amending, varying or supplementing any of the foregoing documents or any of the terms and conditions thereof
Charter-hire means either (i) the Fixed Interest Charter–hire or (ii) the aggregate amount of the Fixed Charter-hire and the Variable Charter-hire payable in accordance with Clause 39 of the Bareboat Charter
Charter-hire Payment Date means each of the dates falling at three (3) calendar month intervals from the Delivery Date and the first Charter-hire Payment Date falling on the Delivery Date provided that should any Charter-hire Payment Date fall on a day other than a Business Day, such Charter-hire Payment Date shall be brought forward to the immediately preceding Business Day
Charter Period means the period of charter of the Vessel under the Bareboat Charter, which shall commence from (and including) the Delivery Date and shall terminate on the date which falls one hundred and twenty (120) calendar months after the Delivery Date unless otherwise terminated in accordance with the terms of the Bareboat Charter
Charterer's Default means a default by the Bareboat Charterer which may constitute a Termination Event within the meaning of clause 44 of the Bareboat Charter
Class or Classification means the classification or class notation specified in clause 2 of the MOA with the relevant Classification Society or another classification approved by the Buyer or the Owner as the classification for the Vessel
Classification Society means Det Norske Veritas or another classification society which is a member of the International Association of Classification Societies (IACS) or as requested by the Seller or the Bareboat Charterer and in each case approved by the Buyer or the Owner
CMBL means CMB Financing Leasing Co. Ltd.
Commercial Management Agreement means the management agreement dated 24 September 2013 between Golar Eskimo and the Commercial Manager in respect of the commercial management of the Vessel 
Commercial Manager means Golar Management Limited appointed by Golar Eskimo to provide and oversee the commercial management of the Vessel in accordance with the scope of the Commercial Management Agreement but subject to the Commercial Manager providing a duly executed Manager's Undertaking to the Owner
Common Terms Documents means together this Agreement, the Security Documents, the MOA and the Bareboat Charter Documents
Confidential Information means all information relating to an Obligor, the Group or the Transaction Documents of which Sea 23 Leasing Co. Limited and/or CMBL becomes aware in its capacity as, or for the purpose of becoming, the Buyer or the Owner or which is received by the Buyer or the Owner in relation to, or for the purpose of becoming the Buyer or the Owner under the relevant Transaction Documents from any member of the Group or any of its advisers in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:
		
	(a)
	is identified in writing at the time of delivery as non-confidential by any member of the Group or any of its advisers; or

		
	(b)
	is known by Sea 23 Leasing Co. Limited before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by the Buyer or the Owner after that date, from a source which is, as far as Sea 23 Leasing Co. Limited is aware, unconnected with the Group and which, in either case, as far as Sea 23 Leasing Co. Limited is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality

Consents means and includes consents, authorisations, licences, approvals, registrations with, declarations to or filings with, or waivers or exemptions from governmental or public bodies or regulatory authorities or courts
Consolidated Tangible Net Worth means, for the Group (on a consolidated basis), the total value of stockholders equity determined in accordance with GAAP as shown on the consolidated balance sheet contained in the most recent annual financial statements and quarterly financial statements of the Group delivered pursuant to clause 49(b) the Bareboat Charter.
Constitutional Documents means, in respect of an Obligor, such Obligor's memorandum and articles of association, bye-laws or other constitutional documents including or referred to in any certificate relating to an Obligor delivered pursuant to the Bareboat Charter
Sea 23 Leasing Co. Limited means Sea 23 Leasing Co. Limited
Current Assets means, as at any date of determination, all of the short term assets of the Group determined in accordance with GAAP on a consolidated basis as shown in the balance sheet for the Group and calculated on the same basis as was applied in the Latest Accounts but using the information current as at the relevant date of determination
Current Liabilities means, as at any date of determination, all of the short term liabilities of the Group (less the current portion of long-term debt, the current portion of long-term capital lease obligations and mark to market swap valuations) determined in accordance with GAAP on a consolidated basis as shown in the balance sheet for the Group and calculated on the same basis as was applied in the Latest Accounts but using the information current as at the relevant date of determination
Delivery means the delivery of the Vessel:
		
	(a)
	in accordance with the terms of the MOA from the Seller to the Buyer; and

		
	(b)
	in accordance with the terms of the Bareboat Charter from the Owner to the Bareboat Charterer

Delivery Costs means the charges and costs for the registration of the title of the Vessel in the name of the Owner
Delivery Date means:
		
	(a)
	in respect of the MOA, the date on which Delivery actually occurs (calculated from 00:01 am of that date), estimated to be 6 November 2015, as evidenced by the relevant Protocol of Delivery and Acceptance, duly executed by the Seller and the Buyer under the MOA and the Owner and the Bareboat Charterer under the Bareboat Charter, such date to be no later than the Cancelling Date; and 

		
	(b)
	in respect of the Bareboat Charter, the date on which the Vessel is delivered by the Owner to the Bareboat Charter under the Bareboat Charter (calculated from 00:01 am of that date) as evidenced by the relevant Protocol of Delivery and Acceptance.

Demobilisation means all activities in relation to the transportation of the Vessel, personnel, equipment and supplies belonging to the Owner from the site where the Vessel is located including the disassembly of the Vessel from the other components of the FSRU facility and the removal and disconnection from the Vessel of any other marine facilities including but not limited to any pipelines, risers, flanges, cables, umbilicals, or any other related equipment or property not belonging to the Owner. Any Demobilisation is done at the risk, time and expense of the Bareboat Charterer
Dollars, USD, US Dollars, United States Dollars and US$ shall mean the lawful currency of the United States of America
Earnings means, in relation to the Vessel, all moneys whatsoever from time to time due or payable to the Bareboat Charterer during the Security Period arising out of the use or operation of the Vessel including (but without limiting the generality of the foregoing) under the Time Charter, all freight, hire and passage moneys, income arising under pooling arrangements, compensation payable to the Bareboat Charterer in the event of requisition of the Vessel for hire, remuneration for salvage and towage services, demurrage and detention moneys, and damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of the Vessel
EBITDA means earnings before interest, tax, depreciation and amortization
Encumbrance means any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement, security interest or other encumbrance of any kind in each case, securing or conferring any priority of payment in respect of any obligation of any person and includes any right granted by a transaction which, in legal terms, is not the granting of security but which has an economic or financial effect similar to the granting of security in each case under any applicable law
Environment means all or either of air and sea (including any living organism supported by such media)
Environmental Claim means any formal claim, notice, prosecution, demand, action, abatement or other order (conditional or otherwise) relating to Environmental Matters or in response to a Spill or any notification or order requiring compliance with the terms of any Environmental Licence or Environmental Law which may reasonably be expected to result in a liability for an Obligor in respect of such matters that exceeds an amount of $5,000,000
Environmental Incident means any Spill from the Vessel in circumstances where:
		
	(a)
	the Vessel or either Manager or the Bareboat Charterer is reasonably likely to be liable for Environmental Claims arising from the Spill; and/or

		
	(b)
	the Vessel is or may reasonably be expected to be arrested or attached in connection with any such Environmental Claim

Environmental Law means all or any relevant law, statute, rule, regulation, treaty, by-law, code of practice, order, notice, demand, decision of the courts of any applicable jurisdiction or of any applicable governmental authority or agency or any other regulatory or other body in any applicable jurisdiction relating to Environmental Matters
Environmental Licence means any permit, licence, authorisation, consent or other approval required at any time by any relevant Environmental Law for the operation of Golar Eskimo's business or in order for Golar Eskimo to comply with its respective obligations under the Transaction Documents
Environmental Matters means the pollution, conservation or protection of the Environment
Existing Loan means the loan facility made available by the Existing Lenders to, amongst others, Golar Eskimo pursuant to the Existing Loan Agreement
Existing Loan Agreement means the facilities agreement dated 25 July 2013 between, among others, Golar Eskimo as borrower and Swedbank AB (publ) as agent and security agent. 
Existing Lenders means lenders under the Existing Loan Agreement
Existing Mortgage means a first preferred mortgage dated 22 December 2014 registered against the Vessel by Golar Eskimo in favour of Swedbank AB, as agent and trustee on behalf of the Existing Lenders
Existing Vessel Security means the Existing Mortgage, a general assignment, a charter assignment, an account security and certain manager’s undertakings entered into by Golar Eskimo in favour of Existing Lenders under the Existing Loan Agreement.
Fair Market Value means either (i) an amount in Dollars which is the arithmetic average of the Valuations prepared by the Approved Valuers as evidenced by the Valuation Certificates or (ii) if only one Valuation has been prepared by an Approved Valuer, the amount in Dollars of such Valuation as evidenced by the Valuation Certificate
Finance Documents means:
		
	(a)
	the Bareboat Charter Documents;

		
	(b)
	the Security Documents; and

		
	(c)
	any other documents designated as such by the Owner and the Bareboat Charterer at any time

Financial Indebtedness means Indebtedness in respect of:
		
	(a)
	money borrowed and debit balances at banks or other financial institutions;

		
	(b)
	any debt instrument;

		
	(c)
	acceptance credit facilities;

		
	(d)
	receivables sold or discounted (other than any receivables to the extent they are old on a non-recourse basis);

		
	(e)
	deferred payments for assets or services acquired (but not ordinary trade credit);

		
	(f)
	finance leases and hire purchase contracts;

		
	(g)
	a counter-indemnity in respect of a guarantee given by a financial institution;

		
	(h)
	any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value will be taken into account); 

		
	(i)
	any other transaction having the commercial effect of a borrowing; and

		
	(j)
	guarantees of Indebtedness of any person falling within any of (a) to (i) above

Financial Statements means the audited financial statements of the Group for the period ended on the relevant Accounting Reference Date
First Charter-hire means the first instalment of Charter-hire payable on the first Charter-hire Payment Date
Fixed Charter-hire shall have the meaning given to it in Clause 39.1(a) of the Bareboat Charter
Fixed Interest-hire shall have the meaning given to it in Clause 39.1 of the Bareboat Charter
Flag State means the Marshall Islands, or such other flag state of the Vessel as may be agreed between the parties in accordance with the Bareboat Charter 
Free Liquid Assets means cash or Cash Equivalents freely available for use by the Guarantor and/or any other Group Member for any lawful purpose without restriction (other than any restriction arising exclusively from any covenant to maintain a minimum level of free cash or Cash Equivalents) notwithstanding any Security Interest, right of set-off or agreement with any other party, where any cash denominated in a currency other than dollars shall be deemed to have a value in dollars equal to the dollar equivalent thereof at the rate of exchange published daily by CMBL as at any date of determination
FSRU means a LNG floating storage regasification unit
GAAP means, in relation to Golar Eskimo and the Guarantor, generally accepted accounting principles and practices in the United States of America
General Assignment means a first priority assignment of the Earnings and Insurances in respect of the Vessel executed or to be executed by the Bareboat Charterer in favour of the Owner in the agreed form
GLNG means Golar LNG Limited, a company incorporated under the laws of Bermuda and whose registered office is at 2nd Floor, S.E. Pearman Building, 9 Par-la-Ville Road, Hamilton, HM 11, Bermuda
Golar Eskimo means Golar Eskimo Corporation (incorporated in Republic of The Marshall Islands with registration number 60998) whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960
Golar MLP means Golar LNG Partners L.P., a limited partnership formed under the laws of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall Islands, MH96960
Golar OpCo means Golar Partners Operating LLC
Golar Tundra means Golar LNG NB13 Corporation (incorporated in Republic of the Marshall Islands with registration number 53184) where registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MM96960
Golar Tundra Transaction Documents means the “Transaction Documents” as defined in the Golar Tundra Common Terms Agreement
Golar Tundra Common Terms Agreement means the agreement dated on or around the date hereof made between Golar Tundra (in its capacities as seller and bareboat charterer) and Sea 24 Leasing Co. Limited (in its capacities as buyer and owner) in connection with the sale and leaseback financing of the Golar Tundra Vessel
Golar Tundra Vessel means the 170,000 cm3 FSRU having hull number 2056 at Samsung Heavy Industries Co. Ltd. and to be named “Golar Tundra” in the name of the Golar Tundra
Golar Tundra Termination Event means any “Termination Event” as defined in the Golar Tundra Common Terms Agreement
Group means the Guarantor, Golar Eskimo and their respective Subsidiaries
Group Member means any other entity which is a part of the Group.
Group Structure Chart means the group structure chart in the form provided by the Bareboat Charterer to the Owner 
Guarantor means Golar MLP 
Hire Calculation Period means, in relation to any Variable Charter-hire, the period of time commencing from the Delivery Date and ending on the date falling three (3) calendar months after the Delivery Date, and each period of three (3) months thereafter from the last day of the preceding Hire Calculation Period
Holding Company shall mean, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary
Incapacity means insolvency, liquidation, dissolution, winding up, administration, receivership, amalgamation, reconstruction of that entity (and, in the case of a partnership, includes the termination or change in the composition of the partnership)
Indebtedness means any obligation for the payment or repayment of money, whether as principal or as surety and whether present or future, actual or contingent
Indemnified Person means:
		
	(a)
	Sea 23 Leasing Co. Limited; and

		
	(b)
	any Affiliate of Sea 23 Leasing Co. Limited

Indirect Tax means any goods and services tax, consumption tax, value added tax or any tax of a similar nature
Initial Charter-hire means an amount in United States Dollars being 10% of the Purchase Price, which shall be deductible from the Purchase Price pursuant to Clause 5.1 of the MOA
Insolvency Event means:
		
	(a)
	Golar Eskimo or the Guarantor becomes insolvent or unable to pay its debts;

		
	(b)
	Golar Eskimo or the Guarantor is dissolved or enters into liquidation, administration, administrative receivership, receivership, a voluntary arrangement, a scheme of arrangement with creditors, any analogous or similar procedure in any jurisdiction other than England or any other form of procedure relating to insolvency, reorganisation or dissolution in any jurisdiction; or any step is taken by any person with a view to any of those things;

		
	(c)
	Golar Eskimo or the Guarantor ceases to carry on business, stops payment of its debts or any class of them or enters into any compromise or arrangement in respect of its debts or any class of them; or takes any step to do any of those things;

		
	(d)
	any judgment or order against Golar Eskimo or the Guarantor is not stayed or complied with within 14 days;

		
	(e)
	any execution, distress, sequestration or other legal process is commenced against any of the assets of Golar Eskimo or the Guarantor and is not discharged within 7 days; or

		
	(f)
	any steps are taken to enforce any security over any assets of Golar Eskimo or the Guarantor

Inspection shall have the meaning given to it in Clause 4 of the MOA.
Insurance Adviser means BankServe or any other reputable insurance consultant familiar with the market and with experience of assets of the same type to as the Vessel review the Insurances and the Finance Documents and to report to Sea 23 Leasing Co. Limited
Insurances means (a) any and all contracts and/or policies of insurance and any other contracts and/or policies of insurance required to be in place, taken out, effected and maintained according to any provisions of the Bareboat Charter, by or for the benefit of the Owner and/or the Mortgagee and/or the Bareboat Charterer (whether in the sole name of any of the foregoing, or in the joint names of all or some and/or either Manager or otherwise) in respect of the Vessel, her earnings or otherwise howsoever in connection therein; and (b) all rights, benefits and other assets relating to, or deriving from, any of the foregoing, including claims of whatsoever nature and return of premium
Insurance Notice in relation to the Insurances, a notice of assignment in the form scheduled to the General Assignment, each Manager's Undertaking or in another approved form 
Interbank Market means the London interbank market
Interest Rate means the aggregate annual rate of the Margin and three (3) months LIBOR
ISM Code means the International Safety Management Code for the Safe Operation of, Ships and for Pollution Prevention, as the same may be amended, supplemented or superseded from time to time (and the terms "safety management system", "Safety Management Certificate" and "Document of Compliance" have the same meanings as are given to them in the ISM Code)
ISPS Code means the International Ship and Port Facility Security Code (as the same may be amended, supplemented or superseded from time to time and any regulations issued pursuant thereto)
Latest Accounts means the annual financial statements of the Group for the financial year ended 2014 delivered pursuant to the Bareboat Charter
Legal Reservations means:
		
	(a)
	the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors;

		
	(b)
	the time barring of claims under the Limitation Acts, the possibility that an undertaking to assume liability for, or indemnify a person against, non-payment of UK stamp duty may be void and defences of set-off or counterclaim;

		
	(c)
	similar principles, rights and defences under the laws of any Relevant Jurisdiction; and

		
	(d)
	any reservations as to matters of law referred to in the legal opinions to be delivered to the Owner under clause 60.1 of the Bareboat Charter

LIBOR means either:
		
	(a)
	the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for Dollars for a period of 3 months and as displayed on the “LIBOR 01” or “LIBOR 02” page on the Thomson Reuters screen (or any replacement the Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of the Thomson Reuters at or about 11:00 a.m. (London time) on the Quotation Day; or

		
	(b)
	if, on the Quotation Day, no such rate appears is available under paragraph (a), LIBOR shall be the arithmetic mean (rounded up to the nearest five (5) decimal places) of the respective offered rates quoted by leading banks to Sea 23 Leasing Co. Limited in the London interbank market for deposits in Dollars in an amount comparable to such sum for such period at or about 11:00 a.m. (London time) (or such other period as may be required under the Bareboat Charter (with Sea 23 Leasing Co. Limited notifying the Bareboat Charterer of such requirement promptly after the execution of the Bareboat Charter)) on the Quotation Day

Loss Payable Clauses means the provisions concerning payment of claims under the Vessel's Insurances in the form scheduled to the General Assignment and each Manager's Undertaking or in another approved form
Losses means all losses, liabilities, costs, charges, expenses, damages, fees and outgoings of whatsoever nature (including, without limitation, Taxes)
Major Casualty means any casualty to the Vessel for which the total insurance claim, inclusive of any deductible exceeds the Major Casualty Amount
Major Casualty Amount means US$5,000,000 (or the equivalent in any other currency)
Management Agreement means the Commercial Management Agreement and/or the Technical Management Agreement
Managers means the Technical Manager and the Commercial Manager and Manager means either of them. 
Manager's Undertaking means an undertaking duly executed by a Manager in form and substance acceptable to Sea 23 Leasing Co. Limited acting reasonably
Margin means 3.85%) per annum
Material Adverse Effect means in the reasonable opinion of the Owner, a material adverse effect on:
		
	(a)
	the business, operations, property, condition (financial or otherwise) of the Bareboat Charterer or the Guarantor; or

		
	(b)
	the ability of an Obligor to perform all or any of its obligations under the Transaction  Documents; or

		
	(c)
	the validity or enforceability of, or the effectiveness or ranking of any Security Interest granted or purported to be granted pursuant to any of the Finance Documents on the rights and remedies of Sea 23 Leasing Co. Limited under any of the Finance Documents.

MOA means the memorandum of agreement in respect of the Vessel entered into or to be entered into between the Seller and the Buyer in the agreed form
Mortgagee shall mean the person(s) to whom the Vessel is being mortgaged by the Owner (but with the prior approval of the Bareboat Charterer should such mortgagee be a direct market competitor of the Bareboat Charterer) and within the provision of “Permitted Mortgagee” as defined in the Time Charter if the Time Charter is in force 
Net Debt means, on a consolidated basis, an amount equal to Financial Indebtedness (but excluding any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price) minus Free Liquid Assets, as evidenced by the consolidated balance sheet for the Group from time to time
Net Sale Proceeds shall have the meaning given to it in Clause 45.6 of the Bareboat Charter
Nominee shall have the meaning given to it in Clause 62 of the Bareboat Charter
Obligors means Golar Eskimo, the Guarantor, the Shareholder, and each Manager
Operating Account means each account to be opened in the name of the Bareboat Charterer with Nordea Bank Finland plc or a third party bank acceptable to the Owner which the Bareboat Charterer and the Owner agree shall be the Operating Account 
Outstanding Capital Balance means an amount of the Purchase Price less the Initial Charter-hire as the same may from time to time be reduced by payments of Fixed Charter-hire or the capital element of the Fixed Interest Charter-hire (as applicable) or otherwise pursuant to the terms of the Bareboat Charter 
Owner means Sea 23 Leasing Co. Limited
Owner's Account means the interest-bearing account denominated in Dollars opened or to be opened in the name of the Owner which includes any sub-accounts or replacement or time deposit thereof (if applicable) and/or any other account designated in writing by the Owner to be an Owner's Account for the purposes of the Bareboat Charter
Owner's Default means a default by the Owner under the Bareboat Charter which may prevent the Bareboat Charterer from having use of the Vessel
Owner's Loan Agreement means any loan agreement or loan agreements entered into or to be entered into between Sea 23 Leasing Co. Limited and the Mortgagee
Parties means in relation to a document the signatories to such document and a Party means each of them
Perfection Requirements means the paying, making or the procuring of the appropriate registrations, taxes, fees, filings, endorsements, notarisation, stampings, translations and/or notifications in respect of the Security Documents as specifically referred to in any Finance Document or in any legal opinion delivered to the Owner pursuant to the Bareboat Charter or in connection with the entry into any Finance Document
Permitted Amendment means any amendment to the Time Charter or the Time Charter Guarantee which relates to matters of a purely technical or operational nature and which would not (in the reasonable opinion of Sea 23 Leasing Co. Limited) be expected to:
		
	(a)
	result in a material structural alteration to the Vessel or affect the safety or structural integrity thereof; or

		
	(b)
	result in any change in the amount (by way of reduction) or calculation of the Time Charter Hire; or

		
	(c)
	result in any material change in the method or timing of payment of the Charter-hire or the Time Charter Hire; or

		
	(d)
	result in any material change in the method of the measurement of the performance of the Bareboat Charterer or the Time Charterer and/or the Vessel; or

		
	(e)
	result in any change to the charter term under the Time Charter; or

		
	(f)
	result in any change in the identity of the Time Charter Guarantor; or

		
	(g)
	result in any breach of any Obligor's obligations under the Finance Documents; or

		
	(h)
	result in any change to any counterparty to a Project Document; 

		
	(i)
	result in any reduction of the term of the Time Charter provided that the initial charter term following such reduction is a minimum of nine (9) years

provided always that any such amendment to the Time Charter anticipated in accordance with this definition shall only be permitted if on or before the date of any such amendment, Sea 23 Leasing Co. Limited shall have received, on terms satisfactory to it, evidence that the Time Charter Guarantor has reconfirmed its obligations under the Time Charter Guarantee and that the Time Charter Guarantee continues in full force and effect together with such legal opinions as may be reasonably required in connection therewith.
Permitted Encumbrances means Encumbrances:
		
	(a)
	created pursuant to the Finance Documents and any Encumbrance arising from the own acts or defaults or claims against the Owner personally for which the Owner would not be entitled to indemnification under the Bareboat Charter;

		
	(b)
	for Taxes either not yet assessed or, if assessed, not yet due and payable or being contested in good faith by appropriate proceedings (and for the payment of which adequate reserves have been provided) so long as any such proceedings or the continued existence of such Encumbrance do not involve any likelihood of the sale, forfeiture or loss of, or of any interest in, the Vessel;

		
	(c)
	liens arising in the ordinary course of business by statute or by operation of law in respect of obligations which are not overdue or which are being contested in good faith by appropriate proceedings (and for the payment of which adequate reserves have been provided) so long as any such proceedings or the continued existence of such lien do not involve any likelihood of the sale, forfeiture or loss of, or of any interest in, the Vessel;

		
	(d)
	arising out of claims, judgements or awards against the Bareboat Charterer which are being contested in good faith or which are subject to a pending appeal and for which there shall have been granted a stay of execution pending such appeal and for the payment of which adequate reserves have been provided;

		
	(e)
	Permitted Liens; or

		
	(f)
	otherwise approved in writing by Sea 23 Leasing Co. Limited

Permitted Liens means:
(a)     liens for unpaid Master’s and crew’s wages in accordance with usual maritime practice;
(b)     liens for salvage; and
(c)     liens for Master’s disbursements incurred in the ordinary course of trading and any other lien arising by operation of law or otherwise in the ordinary course of the operation and repair of the Vessel,
provided such liens do not secure any item which is more than thirty (30) Days overdue (unless the overdue amount is being contested in good faith by appropriate steps and, for the payment of which, adequate reserves have been made) and so long as the existence of any such proceedings or the continued existence of any such lien does not involve any likelihood of the sale, forfeiture or loss of, or any interest in, the Vessel;
Pollutant means any substance whose release into the environment is regulated or penalised by relevant Environmental Laws
Prohibited Payment means:
		
	(a)
	any offer, gift, payment, promise to pay, commission, fee, loan or other consideration which would constitute bribery or a breach of the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other applicable law of any Relevant Jurisdiction or England and Wales; or

		
	(b)
	any offer, gift, payment, promise to pay, commission, fee, loan or other consideration which would or might constitute bribery within the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions of 17 December 1997

Project means, the financing, purchase and operation of the Vessel as contemplated by and in accordance with the Transaction Documents
Project Authorisations means all licences, permits, approvals, filings, registrations, exemptions, authorisations and consents (other than Environmental Licences) necessary in connection with the Transaction Documents and/or the Project
Project Documents means the Charter Documents and the Management Agreements and any other document(s) designated as such by Sea 23 Leasing Co. Limited and Golar Eskimo at any time and any deed, document agreement or instrument amending, varying, supplementing, ratifying, confirming, extending or renewing any of the foregoing documents or any of the terms and conditions thereof or consenting to the amendment or variation of the terms and conditions thereof
Protocol of Delivery and Acceptance means the protocol of delivery and acceptance evidencing delivery and acceptance of the Vessel duly executed by the parties thereto
		
	(a)
	under the MOA substantially in the form of Schedule 1 to the MOA; and

		
	(b)
	under the Bareboat Charter substantially in the form of Appendix I to the Bareboat Charter

PRC means the People's Republic of China
Purchase Obligation has the meaning given to it in Clause 49.4 of the Bareboat Charter
Purchase Obligation Price means an amount in United States Dollars equivalent to 50% of the Actual Purchase Price.
Purchase Option has the meaning given to it in Clause 50.1 of the Bareboat Charter
Purchase Option Date means the date falling on the third (3rd) anniversary of the Delivery Date and each of the dates falling at twelve (12) calendar months intervals thereafter, up to (and including) the expiry of the Charter Period; provided that should any Purchase Option Date fall on a date other than a Business Day, that Purchase Option Date shall be advanced to be the immediately preceding Business Day
Purchase Option Price means the price for exercising the Purchase Option, as set out in Appendix III to the Bareboat Charter
Purchase Price means the purchase price of the Vessel in accordance with Clause 3 of the MOA
Put Option shall have the meaning given to it in Clause 50.5 or 50.6 of the Bareboat Charter
Put Option Price shall have the meaning given to it in Clause 50.5 and 50.6 of the Bareboat Charter
Quiet Enjoyment Letters means:
		
	(a)
	the quiet enjoyment letter entered or to be entered into between the Owner, the Mortgagee and the Bareboat Charterer substantially in the form at Appendix IV to the Bareboat Charter or such other mutually agreeable terms as the parties may reasonably agree;

		
	(b)
	if applicable, any quiet enjoyment letter entered or to be entered into between any Nominee nominated by the Owner pursuant to Clause 62 of the Bareboat Charter, their mortgagee and the Bareboat Charterer substantially in the form at Appendix IV to the Bareboat Charter or such other mutually agreeable terms as the parties may reasonably agree;

		
	(c)
	the quiet enjoyment letter entered or to be entered into between the Owner, the Bareboat Charterer and the Time Charterer; and

		
	(d)
	if applicable, any quiet enjoyment letter entered or to be entered into between any Nominee nominated by the Owner pursuant to Clause 62 of the Bareboat Charter, the Bareboat Charterer and the Time Charterer substantially in the form at Appendix IV to the Bareboat Charter or such other mutually agreeable terms as the parties may reasonably agree.

and Quiet Enjoyment Letter means any of them.
Quotation Day means, in relation to any period for which an interest rate is to be determined, two (2) Business Days before the first day of that period unless market practice differs in the Interbank Market for currency, in which case the Quotation Day for that currency shall be determined by the Lender or the Owner in accordance with market practice in the Interbank Market (and if quotations would normally be given by leading banks in the Interbank Market on more than one day, the Quotation Day will be the last of those days)
Receiver means a receiver or a receiver and manager or an administrative receiver appointed in relation to the whole or any part of any Charged Property under any relevant Security Document
Redelivery means with respect to the Bareboat Charter, the redelivery of the Vessel by the Bareboat Charterer to the Owner following termination of the Bareboat Charter
Redelivery Date means the date on which Redelivery of the Vessel occurs
Registry means such registrar, commissioner or representative of the relevant Flag State who is duly authorised and empowered to register the Vessel and Golar Eskimo's title to the Vessel under the laws of its Flag State
Regulation means any present or future law, regulation, request, requirement or guideline of any authority, whether or not it has the force of law (but, if it does not, with which the entity concerned habitually complies)
Relevant Jurisdiction means in relation to a party:
		
	(a)
	its jurisdiction of incorporation;

		
	(b)
	any jurisdiction where any Charged Property owned by it is situated; and

		
	(c)
	any jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it;

Requisition Compensation means any compensation paid or payable by a government entity for the requisition of title, confiscation or compulsory acquisition of the Vessel
Restricted Party means a person, entity or vessel:
		
	(a)
	that is listed on any Sanctions List or any other sanctions-related list of persons, vessels or entities published by or on behalf of the European Union, the member states of the European Union, the United States of America and any authority acting on behalf of them (in each case, whether designated by name or by reason of being included in a class of person, vessel or entity);

		
	(b)
	that is domiciled, registered as located or having its main place of business in, or is incorporated under the laws of, a country which is subject to comprehensive country-wide sanctions administered or enforced by the European Union, the member states of the European Union, the United States of America or any authority acting on behalf of any of them and which attach legal effect to being domiciled, registered as located in, having its main place of business in, and/or being incorporate under the laws of such country; or

		
	(c)
	that is directly or indirectly owned or controlled by a person referred to in paragraph(s) (a) and/or (b) above

Sanctions Authority means the European Union, the member states of the European Union and the United States of America and any authority acting on behalf of any of them in connection with Sanctions Laws
Sanctions Laws means any economic or financial sanctions laws and/or any regulations, trade embargoes or restrictive measures administered, enacted or enforced by any Sanctions Authority which are applicable to any and all Relevant Parties
Sanctions List means any list of persons, vessels or entities published in connection with Sanctions Laws by or on behalf of any Sanctions Authority
Secured Obligations means any and all obligations and liabilities (whether actual or contingent, whether as principal, surety or otherwise, whether now existing or hereafter arising, whether or not for the payment of money, and including, without limitation, any obligation or liability to pay damages) of the Bareboat Charterer under the Bareboat Charter
Security Documents means the following:
		
	(a)
	Share Security;

		
	(b)
	Bareboat Charter Guarantee;

		
	(c)
	Subordination Deed (if applicable);

		
	(d)
	Manager's Undertakings;

		
	(e)
	General Assignment;

		
	(f)
	Assignment of Time Charter Documents;

		
	(g)
	Accounts Security Deed;

		
	(h)
	Quiet Enjoyment Letter;

		
	(i)
	Vessel Buy Back Agreement; and

		
	(j)
	any other document designated a “Security Document” by the Parties to the Bareboat Charter

Security Interest means:
		
	(a)
	any mortgage, charge, pledge, lien, hypothecation, assignment by way of security, trust arrangement for the purpose of providing security or other security interest of any kind in any jurisdiction;

		
	(b)
	any proprietary interest over an asset, or any contractual arrangement in relation to an asset, in each case created in relation to Financial Indebtedness and which has the same commercial effect as if security had been created over it; and

		
	(c)
	any right of set-off created by agreement

Security Period means the period commencing on the Delivery Date and continuing for as long as any moneys are owing actually or contingently under the Bareboat Charter and the Security Documents
Seller means Golar Eskimo
Shareholder means Golar OpCo
Shareholder Funding means any amount by way of Shareholder Loan provided by the Shareholder to Golar Eskimo pursuant to a Shareholder Loan Agreement (and which shall be subordinated in all respects to all amounts owing to the Owner under the Finance Documents by a Subordination Deed or otherwise on terms acceptable to the Owner)
Shareholder Loan means any loan made or to be made by the Shareholder to Golar Eskimo pursuant to a Shareholder Loan Agreement
Shareholder Loan Agreement means any shareholder loan agreement made or to be made between the Shareholder and Golar Eskimo for the provision of a Shareholder Loan
Share Security means the document constituting a first Security Interest by each Shareholder in favour of the Owner in the agreed form in respect of its shares in Golar Eskimo
Spill means any actual spill, release or discharge of a Pollutant into the Environment
Subordination Deed means any deed of subordination in the agreed form executed or, as the context may require, to be executed by, amongst others, the Shareholder in favour of the Owner 
Subsidiary means in relation to any company or corporation, a company or corporation:
		
	(a)
	which is controlled, directly or indirectly, by the first mentioned company or corporation;

		
	(b)
	more than half the issued equity share capital of which is beneficially owned, directly or indirectly, by the first mentioned company or corporation; or

		
	(c)
	which is a Subsidiary of another Subsidiary of the first mentioned company or corporation

Tax means all present and future taxes, levies, imposts, duties, fees or charges of whatever nature together with any related interest and penalties (and "Taxes" and "Taxation" is construed accordingly)
Technical Management Agreement means the management agreement dated 21 June 2010 between the Technical Manager and the Commercial Manager in respect of technical management of the Vessel in the agreed form
Technical Manager means Golar Wilhelmsen Management AS appointed by Golar Eskimo to provide and oversee the technical management of the Vessel in accordance with the scope of the Technical Management Agreement but subject to the Technical Manager providing a duly executed Manager's Undertaking to the Owner
Termination Date means the date on which the Bareboat Charter is terminated pursuant to, and in accordance with, clause 44.1 of the Bareboat Charter
Termination Event means any of the events or circumstances described in clause 44 (Termination Events) of the Bareboat Charter
Termination Sum shall mean the Owner's actual and proven losses directly incurred as a result of any early termination of the Bareboat Charter as a result of a Termination Event in clause 44 of the Bareboat Charter which is continuing and which is to be calculated as being the aggregate of:
		
	(a)
	the full amount of the Outstanding Capital Balance; 

		
	(b)
	all Variable Charter-hire, if any, due and payable but unpaid under the Bareboat Charter up to and including the Termination Date together with interest (as stipulated in Clause 39.6 of the Bareboat Charter) accrued thereon from the due date therefor to the Termination Date;

		
	(c)
	any default interest payable pursuant to Clause 39.6 of the Bareboat Charter being agreed by the Parties to be a genuine pre-estimate of the loss suffered by the Owner as a result of the termination and therefore not a penalty;

		
	(d)
	any sums (other than Charter-hire) due and payable but unpaid under the Bareboat Charter together with interest accrued thereon up to and including the Termination Date; and

		
	(e)
	any and all Losses (including but not limited to reasonable legal and advisory fees or terminating any USD interest rate swaps (if any) incurred by the Owner as a result of its entering into the Bareboat Charter and the other Finance Documents and including without prejudice to the generality of the foregoing, all Losses incurred or suffered by the Owner in liquidating, employing or prepaying funds acquired or borrowed to purchase or finance or refinance the Vessel (including any costs incurred in unwinding any associated interest rate or currency swaps or currency futures)

Time Charter means the time charter for the Vessel dated 31 July 2013 which commenced on 24 June, 2015 made between Golar Eskimo and The Government of the Hashemite Kingdom of Jordan, represented by the Ministry of Energy and Mineral Resources of the Hashemite Kingdom of Jordan for a period of ten (10) years and at a daily charter rate of $135,065 for the first five (5) years and $123,600 for the second five (5) years (as novated or to be novated by The Government of the Hashemite Kingdom of Jordan, represented by the Ministry of Energy and Mineral Resources of the Hashemite Kingdom of Jordan to National Electric Power Company of Jordan pursuant to a novation agreement dated July 2015 entered into between Golar Eskimo, Golar LNG Limited, The Government of the Hashemite Kingdom of Jordan, represented by the Ministry of Energy and Mineral Resources of the Hashemite Kingdom of Jordan and the Time Charterer)
Time Charter Documents means together the Time Charter and the Time Charter Guarantee
Time Charter Guarantee means the government guarantee dated 31 July 2013 issued and affirmed or to be affirmed by the Time Charter Guarantor in favour of Golar Eskimo in respect of the obligations of the Time Charterer under the Time Charter
Time Charter Guarantor means The Government of Hashemite Kingdom of Jordan acting through the Ministry of Finance of the Hashemite Kingdom of Jordan.
Time Charter Hire means hire payable in accordance with the terms of the Time Charter.
Time Charterer means National Electric Power Company, a company registered under the laws of Jordan at PO Box 2310, Amman, 11181, Jordan.
Time Charterer's Default means a default under a Time Charter by the Time Charterer which in the reasonable opinion of Sea 23 Leasing Co. Limited is likely to affect the Bareboat Charter
Total Loss means in relation to the Vessel, its:
		
	(a)
	actual, constructive, compromised or arranged total loss; or

		
	(b)
	requisition for title, confiscation, expropriation, nationalisation, seizure or other compulsory acquisition by a government entity; or

		
	(c)
	hijacking, theft, condemnation, capture, seizure, arrest or detention for more than 90 days

Total Loss Date means in relation to the Total Loss of the Vessel:
		
	(a)
	in the case of an actual total loss, the date it happened or, if such date is not known, the date on which the vessel was last reported;

		
	(b)
	in the case of a constructive, compromised, agreed or arranged total loss, the earliest of:

		
	(c)
	the date notice of abandonment of the vessel is given to its insurers by Golar Eskimo or Sea 23 Leasing Co. Limited; or

		
	(d)
	if the insurers do not admit such a claim, the date later determined by a competent court of law to have been the date on which the total loss happened; or

		
	(e)
	the date upon which a binding agreement as to such compromised or arranged total loss has been entered into by the relevant insurers;

		
	(f)
	in the case of a requisition for title, confiscation or compulsory acquisition, the date it happened; and

		
	(g)
	in the case of hijacking, theft, condemnation, capture, seizure, arrest or detention, the date 90 days after the date upon which it happened

Total Loss Repayment Date means where the Vessel has become a Total Loss, the earlier of:
		
	(a)
	the date 180 days after its Total Loss Date; and

		
	(b)
	the date upon which insurance proceeds or Requisition Compensation for such Total Loss are paid by insurers or the relevant government entity

Transaction Documents means the Finance Documents, the MOA, the Project Documents and any other documents designated as such by the Owner and the Bareboat Charterer
Valuation means a desk top, charter free valuation prepared by an Approved Valuer in respect of the Vessel
Valuation Certificate means a certificate issued by an Approved Valuer to the Buyer or Owner (as the case may be) in respect of the Valuation
Variable Charter-hire shall have the meaning given to it in Clause 39.1(b) of the Bareboat Charter
Vessel means the 160,000 m3 FSRU (ex Samsung Hull No. 2024) named “GOLAR ESKIMO”
Vessel Buy Back Agreement means the vessel buyback agreement to be entered into between the Owner and the Bareboat Charterer in the form appended to the Bareboat Charter as Appendix II
Vessel Construction Price means US$285,000,000
		
	1.2
	Interpretation

In each of the Common Terms Documents and the other Finance Documents:
		
	(a)
	the table of contents, the summary and the headings are inserted for convenience only and do not affect the interpretation of the relevant Common Terms Document or other Finance Document;

		
	(b)
	references to clauses and schedules are to clauses of, and schedules to, the relevant Common Terms Document or other Finance Document;

		
	(c)
	references to a person include an individual, firm, company, corporation, unincorporated body of persons, any government entity, any government entity, state or agency of that state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality);

		
	(d)
	references to any person include its successors in title, permitted assignees and permitted transferees;

		
	(e)
	words importing the plural include the singular and vice versa;

		
	(f)
	references to a time of day are to Shanghai time, using the 24 hour clock (unless the context otherwise requires);

		
	(g)
	references to any enactment include that enactment as re-enacted; and, if an enactment is amended, any provision of any Common Terms Document or other Finance Document which refers to that enactment will be amended in such manner as the Buyer or the Owner (as relevant) after consultation with the Seller or the Bareboat Charterer (as relevant determines to be necessary in order to preserve the intended effect of the relevant Common Terms Document or other Finance Document.;

		
	(h)
	references to a provision of law or regulation shall be a reference to that provision as amended, supplemented, replaced or re-enacted;

		
	(i)
	assets includes present and future properties, assets, intellectual property rights, real property, personal property, rights, revenues, uncalled capital and any rights to receive, or require delivery of, or exercise direct control over any of the foregoing;

		
	(j)
	references to a Common Terms Document or other Finance Document or any other agreement or instrument is a reference to that Common Terms Document or other Finance Document or other agreement or instrument as it may from time to time be amended, re-stated, novated, however fundamentally;

		
	(k)
	an obligation means any duty, obligation or liability of any kind;

		
	(l)
	a term including shall be construed as meaning including without limitation;

		
	(m)
	approved means, as the case may be,  approved in writing by the Owner (on such conditions as the Owner may impose) and approval and approve shall be construed accordingly;

		
	(n)
	an authorisation means any authorisation, consent, concession, approval, resolution, licence, exemption, filing, notarisation or registration;

		
	(o)
	control of an entity means:

		
	(i)
	the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:-

		
	(ii)
	cast, or control the casting of, more than 50 per cent of the maximum number of votes that might be cast at a general meeting of that entity; or

		
	(iii)
	appoint or remove all, or the majority, of all directors or other equivalent officers of that entity; or

		
	(iv)
	give directions with respect to the operating and financial policies of that entity with which the directors or other equivalent officers of that entity are obliged to comply; and/or

		
	(v)
	the holding beneficially of more than 50 per cent of the issued share capital of that entity (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital) (and, for this purpose, any Security Interest over share capital shall be disregarded in determining the beneficial ownership of such share capital);

and controlled shall be construed accordingly;
		
	(p)
	the term disposal or dispose means a sale, transfer or other disposal (including by way of lease or loan but not including by way of loan of money) by a person of all or part of its assets whether by one transaction or a series of transactions and whether at the same time or over a period of time, but not the creation of a Security Interest;

		
	(q)
	the equivalent of an amount specified in a particular currency (the specified currency amount) shall be construed as a reference to the amount of the other relevant currency which can be purchased with the specified currency amount in the London foreign exchange market at or about 11 a.m. on the date the calculation falls to be made for spot delivery, as conclusively determined by Sea 23 Leasing Co. Limited (with the relevant exchange rate of any such purchase being CMBL’s spot rate of exchange);

		
	(r)
	a government entity means any government, state or agency of state;

		
	(s)
	a guarantee means any guarantee, letter of credit, bond, indemnity or similar assurance against loss or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

		
	(t)
	indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present, future actual or contingent;

		
	(u)
	month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month or the calendar month in which it is to end, except that:

		
	(i)
	if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that month (if there is one) or on the immediately preceding Business Day (if there is not); and

		
	(ii)
	if there is no numerically corresponding day in that month, that period shall end on the last Business Day in that month

and the above rules in paragraphs (i) and (ii) will only apply to the last month of any period;
		
	(v)
	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation and includes (without limitation) any Basel II Regulation or Basel III Regulation;

		
	(w)
	right means any right, privilege, power or remedy, any proprietary interest in any asset and any other interest or remedy of any kind, whether actual or contingent, present or future, arising under contract or law, or in equity;

		
	(x)
	(i) the liquidation, winding up, dissolution, or administration of person or (ii) a receiver or administrative receiver or administrator in the context of insolvency proceedings or security enforcement actions in respect of a person shall be construed so as to include any equivalent or analogous proceedings or any equivalent and analogous person or appointee (respectively) under the law of the jurisdiction in which such person is established or incorporated or any jurisdiction in which such person carries on business including (in respect of proceedings) the seeking or occurrences of liquidation, winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief of debtors;

		
	(y)
	a provision of law is a reference to that provision as amended or re-enacted; and

		
	(z)
	in an agreed form means:

		
	(i)
	where a document has already been executed, such document in its executed form; and

		
	(ii)
	prior to the execution of a document, the form of such document agreed in writing between Sea 23 Leasing Co. Limited and Golar Eskimo is the form in which that document is to be executed.

		
	2
	Notices

		
	2.1
	Any notice or other communication to a party to the Transaction Documents must be in writing.  It must be addressed for the attention of such person, and sent to such address, fax number or email address as that party may from time to time notify to the other parties.

		
	2.2
	It shall be deemed to have been received by the relevant party on receipt at that address.

		
	2.3
	The initial administrative details of the parties are contained in the Schedule, but a party may amend its own details at any time by notice to the other parties.

		
	3
	English Translations

		
	3.1
	Any notice given under or in connection with the Transaction Documents must be in English.

		
	3.2
	Where any other document provided to the Owner under the terms of the Transaction Documents is not in English, that document must be accompanied by an English translation, certified to be an accurate translation of the original.

		
	3.3
	The English translation will prevail over the original document unless that document is a constitutional, statutory or other official document.

		
	4
	Partial Invalidity

If, at any time, any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision in any other respect or under the law of any other jurisdiction will be affected or impaired in any way.

		
	5
	Confidentiality

Sea 23 Leasing Co. Limited agrees to keep all Confidential Information confidential and not to disclose it to anyone, save by Sea 23 Leasing Co. Limited to the extent permitted by clause 58 (Confidentiality) of the Bareboat Charter, and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

		
	6
	Counterparts

Each Transaction Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Transaction Document.

		
	7
	Law and Jurisdiction

		
	7.1
	This Agreement and any non-contractual obligations connected with it are governed by and shall be construed in accordance with English law.

		
	7.2
	The courts of Hong Kong have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Deed) (a Dispute).

		
	7.3
	The parties agree that the courts of Hong Kong are the most appropriate and convenient courts to settle Disputes and, accordingly, that they shall not argue to the contrary.

		
	7.4
	Clauses 7.2 and 7.3 are for the benefit of the Buyer and the Owner only.  As a result, the Buyer and the Owner shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Buyer and the Owner may take concurrent proceedings in any number of jurisdictions

THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

Schedule -  
Administrative Details
	
				
	Party
	Address
	Fax Number
	Attention

	Seller / Bareboat Charterer
	c/o Golar Management Ltd, 13th Floor, 1 America Square, 17 Crosswall, London EC3N 2LB, United Kingdom
	 
	Mr. Brian Tienzo

	Buyer / Owner
	c/o CMB Financial Leasing Co. Ltd
21F, China Merchants Bank Building, 
No. 1088, Lujiazui Ring Road, Shanghai, China 200120
	86 21 6105 9992
	Ms. Lu Chang

	Guarantor
	c/o Golar Management Ltd, 13th Floor, 1 America Square, 17 Crosswall, London EC3N 2LB, United Kingdom
	 
	Mr. Brian Tienzo

SIGNATURE PAGES

	
			
	SELLER
	 
	 

	SIGNED by
For and on behalf of 
GOLAR ESKIMO CORPORATION
In the presence of 
	)
)
)
	Brian Tienzo

Cyril Chew

	 
	 
	

	
			
	BAREBOAT CHARTERER
	 
	 

	SIGNED by 
For and on behalf of 
GOLAR ESKIMO CORPORATION
In the presence of 
	)
)
)
	Brian Tienzo

Cyril Chew

	 
	 
	

	
			
	

GUARANTOR
	 
	 

	SIGNED by 
For and on behalf of GOLAR LNG  
PARTNERS LP
In the presence of 
	)
)
)
)
	Brian Tienzo

Cyril Chew

	 
	 
	

	
			
	BUYER
	 
	 

	SIGNED by 
For and on behalf of 
SEA 23 LEASING CO. LIMITED
In the presence of 
	)
)
)
	Zhou Ling

Cyril Chew

	
			
	OWNER
	 
	 

	SIGNED by 
For and on behalf of 
SEA 23 LEASING CO. LIMITED
In the presence of 
	)
)
)
	Zhou Ling

Cyril Chewex10-10.htm

Exhibit 10.10

 

CONFIDENTIAL SETTLEMENT AGREEMENT AND LICENSE

 

This Confidential Settlement Agreement and License (the “Agreement”), dated as of March 26, 2016, is made by and among COMARCO, INC. (“CI”), a California corporation, and COMARCO WIRELESS TECHNOLOGIES, INC. (“CWT”), a Delaware corporation, on the one hand (CI and CWT are referred to together as “Comarco”), and TARGUS INTERNATIONAL LLC (“TI”), a Delaware limited liability company, and FT 1, INC. (formerly known as TARGUS GROUP INTERNATIONAL, INC.) (“FT 1” or, where appropriate in context, “TGII”), a Delaware corporation, on the other hand (TI and FT 1 are sometimes referred to together as “Targus”). Comarco and Targus are referred to collectively as the “Parties” and individually as a “Party.”

 

RECITALS

 

A.     In 2014, Comarco filed a complaint against TGII in the United States District Court for the Central District of California, entitled Comarco, Inc. et al. v. Targus Group Int’l, Inc., Case No. 8:14-cv-00361 (C.D. Cal. 2014)) (the “Federal Action”). In the Federal Action, Comarco asserted against TGII claims for patent infringement, breach of contract, intentional interference with contract, violation of California Business and Professions Code Section 17200, and misrepresentation - fraudulent concealment.

 

B.     Later in 2014, after TGII sought ex parte reexamination of certain Comarco patents, and after Comarco then dismissed the Federal Action without prejudice, Comarco filed a Complaint against TGII in the Superior Court of the State of California, County of Orange, entitled Comarco, Inc. et al. v. Targus Group Int’l, Inc., Case No. 30-2014-00726792-CU-CI-CJC (the “State Action”). In the State Action, Comarco asserted against TGII claims for breach of contract, fraudulent concealment, unfair competition, and accounting.

 

C.     TGII steadfastly denies the allegations contained in both the Federal Action and the State Action and, in the State Action, moved to compel arbitration in accordance with the provisions of a Strategic Product Development and Supply Agreement (the “SPDA”), dated March 16, 2009, between CI and TGII. The court in the State Action granted TGII’s motion and ordered the parties into arbitration. 

 

D.     Thereafter, Comarco filed a Demand for Arbitration (and later an Amended Demand for Arbitration) with JAMS in Orange County, California in a matter entitled Comarco, Inc. et al. v. Targus Group Int’l, Inc., JAMS Case No. 1200049766 (the “Arbitration”). In the Arbitration, Comarco’s Amended Demand for Arbitration asserts claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and accounting. TGII answered Comarco’s Demand and Amended Demand in the Arbitration and steadfastly denies all claims therein.

 

E.     The Federal Action, the State Action, and the Arbitration are hereinafter referred to together as the “Litigation.” 

 

F.     TGII defaulted on its obligations under its senior term loan credit facility (the “Credit Facility”).

 

G.     As a result of such default and pursuant to Section 9-610 of the Uniform Commercial Code, the collateral agent under the Credit Facility (the “Collateral Agent”) held a public sale (the “Foreclosure Sale”) of certain assets of TGII and certain of its affiliates that are guarantors under the Credit Facility (such assets, the “Foreclosed Assets”).

 

 

 

 

  

H.     The Collateral Agent, on behalf of the lenders under the Credit Facility, submitted the winning bid at the Foreclosure Sale to acquire all of the Foreclosed Assets.

 

I.     As a result of being the winning bidder at the Foreclosure Sale, the Collateral Agent, on behalf of the lenders under the Credit Facility, acquired all of the Foreclosed Assets on February 3, 2016.

 

J.     Immediately following the Collateral Agent’s acquisition of the Foreclosed Assets pursuant to the Foreclosure Sale, the Collateral Agent sold and assigned the Foreclosed Assets to TI and certain of its affiliates (such sale, the “Sale Transaction”), with substantially all of the Foreclosed Assets ultimately being assigned to TI.

 

K.     As a result of the Foreclosure Sale and the Sale Transaction, TI distributes and sells to retailers, consumers, original equipment manufacturers (“OEMs”), and others the products alleged by Comarco in the Litigation to breach the SPDA and utilizes Comarco’s alleged intellectual property, including, without limitation, Comarco patents and patent applications.

 

L.     In connection with and following the Foreclosure Sale and the Sale Transaction, Comarco has asserted through discussion among Comarco’s counsel and TGII’s counsel that TI may be liable to Comarco as a successor to TGII for one or more claims, including claims asserted by Comarco in the Litigation (the “Successor Allegations”). For its part, TI steadfastly denies any liability to Comarco for the Successor Allegations or otherwise.

 

M.    The Litigation and the Successor Allegations (including TI’s denial thereof) are collectively referred to as the “Dispute.”

 

N.     The Parties desire to avoid the uncertainty and further expense of pursuing the Dispute and to resolve the Dispute in a mutually agreeable manner.

 

THEREFORE, based on the foregoing Recitals, and in consideration of the mutual promises set forth below, the sufficiency of which is hereby acknowledged, the Parties agree to be legally bound as follows.

 

SECTION I
EFFECTIVE DATE AND PAYMENT

 

1.1    Effective Date. This Agreement shall become effective and binding on the date on which all of the Parties have received duly executed signature pages for this Agreement from each of the other Parties (such date, the “Effective Date”). 

 

 

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 #### Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

  

 

1.2     Payment. In exchange for the License set forth in Section II hereof, and in exchange for other consideration set forth in this Agreement, Targus shall pay to CI the sum of $#### (the “Payment”). The Payment shall be made within five (5) business days of the complete execution of this Agreement in the form of a wire transfer in accordance with wire transfer instructions attached hereto as Exhibit A.

 

SECTION II
LICENSE

 

2.1     As of the Effective Date, Comarco grants to Targus, including its respective parents, subsidiaries, affiliates, and its successors, assigns, divisions, units, and joint ventures, a nonexclusive, irrevocable, fully-paid-up (except as qualified in Subsection 2.3 with respect to “Extra OEM Products” and Subsection 7.11 with respect to successors or assigns) world-wide license and the ability to sub-license, if necessary (the “License”), to make, have made, assemble, have assembled, use, offer for sale, sell, import, export, offer to distribute, distribute, repair, reconstruct, or maintain the “Licensed Products,” as defined in Exhibit B. It is expressly understood and agreed that Targus may sublicense its rights under this License to vendors, suppliers, and manufacturers or other third parties as may be reasonably necessary to make Licensed Products or any component thereof solely for the benefit of and sale to Targus, and that Targus's distributors, customers, and end users have the right to use, sell, offer for sale, distribute, import, export, offer to distribute, distribute, repair, reconstruct, or maintain Licensed Products. 

 

2.2     Targus may make, have made, assemble, have assembled, use, offer for sale, sell, import, export, offer to distribute, distribute, repair, reconstruct and maintain Licensed Products to and/or for OEMs, as hereafter defined, subject to the terms of Section 2.1 and the following terms. For purposes of this Agreement, OEM shall mean any producer or manufacturer of portable electronic products, such as laptop, notebook, and tablet computers, telephones, and mp3 players, and all such similar devices, that sells such products under its own brand name or names, and shall include by way of example, but not limitation, Apple, Dell, Samsung, Lenovo, Acer, Hewlett Packard, and similar OEMs. Targus may sell to and/or for OEMs up to and including #### units per calendar year (the “Annual OEM Cap”) of Licensed Products. All units of Licensed Products sold up to and including the number of units allowed under the Annual OEM Cap in each calendar year shall be considered within the fully-paid-up License, and no consideration beyond the Payment shall be due for sales of units of Licensed Products up to and including the number of units allowed under the Annual OEM Cap. Targus may sell units of Licensed Products in a calendar year in excess of the OEM Annual Cap and Targus shall remit to CI a royalty (“Additional Royalty”) in the following amounts for units of Licensed Products sold in a calendar year in excess of the OEM Annual Cap (“Extra OEM Products”): (a) $#### for each unit of an OEM Product that constitutes a high-power device (a product #### watts or higher); and (b) $#### for each unit of an OEM Product that constitutes a low-power device (a product less than #### watts). Notwithstanding anything to the contrary contained herein, the obligation to pay any Additional Royalty pursuant to this Agreement shall only exist to the extent that the Extra OEM Products are subject to any patents owned by Comarco and any such obligation shall remain in effect only for the life of any such patents. 

 

 

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2.3     In the event Targus sells Extra OEM Products that are subject to this Agreement, Targus shall pay to CI by no later than March 31 of the following calendar year the Additional Royalty due for sales of units of Extra OEM Products in the preceding calendar year. 

 

2.4     For the avoidance of doubt, the License shall be considered a fully-paid-up, retroactive, and prospective License that is fully paid-up based on the Payment set forth in Section I above, (subject only to the potential for an Additional Royalty as set forth in Section 2.2 above.

 

2.5     Targus shall maintain accurate, complete records of its sales of Licensed Products to OEMs under this Agreement for the period set forth in Sections 2.1 and 2.2 above. During such period, Targus shall provide Comarco, on an annual basis, with reports detailing unit sales of Licensed Products to OEMs which are subject to the Additional Royalty obligation defined above. Targus shall provide these reports within 45 days following the end of the previous Targus fiscal year. 

 

2.6.    So long as Targus is obligated to pay an Additional Royalty Comarco shall have the right not more than once in any twelve (12) months, upon at least thirty (30) days’ prior notice to Targus, through an independent certified public accountant selected by Comarco subject to Targus’s approval, not to be unreasonably withheld or delayed by Targus, to audit the relevant records of Targus on a confidential basis, at a reasonable place and during normal business hours, to verify any payment and report made by Targus pursuant to Sections 2.3 and 2.5. The auditor shall examine Targus's records only on matters pertinent to the calculation of the unit sales and Additional Royalties, as set forth above. All costs and expenses in connection with such audit shall be borne solely by Comarco, except as provided below. If an audit shows the amount actually paid to CI for any period is less than the amount which should have been paid to CI for that period by greater than ten percent (10%), Targus agrees to pay all reasonable and verified fees associated with such audit. 

 

SECTION III
DISMISSAL OF STATE ACTION AND ARBITRATION

 

3.1     Within two (2) business days of Comarco’s receipt of the Payment, Comarco and FT 1 shall submit to the court in the State Action and to the arbitration panel in the Arbitration any and all papers necessary to effect a complete and final dismissal with prejudice of the State Action and the Arbitration. Each Party shall bear sole responsibility for any of its attorneys’ fees, expert fees, or any other fees or expenses it has incurred in connection with the Dispute, and neither Comarco nor Targus shall seek any such fees or expenses from each other in connection with the Dispute.

 

 

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SECTION IV
RELEASE

 

4.1     General Release of Claims. Except for the rights and obligations created by this Agreement, CI and CWT, on behalf of themselves and their respective past, present and future owners, shareholders, parents, subsidiaries, predecessors, successors, assigns, divisions, units, officers, directors, employees, contractors, agents, attorneys, representatives, heirs, executors, or any other party claiming rights by, through, or under CI or CWT or any Comarco IP (collectively, the “Comarco Releasors”), irrevocably and unconditionally release and discharge (i) TI and FT 1; and (ii) their respective past, present and future owners, shareholders, parents, subsidiaries, successors, assigns, divisions, units, officers, directors, employees, contractors, agents, attorneys, and representatives (collectively, the “Targus Released Parties”), from and against any and all claims, allegations, counterclaims, demands, causes of action, damages, losses, debts, obligations, suits, costs, expenses, fees (including, but not limited to, attorneys’ fees and expert witness fees), and liabilities of any kind whatsoever, upon any legal or equitable theory of any jurisdiction, whether known, unknown, contractual, tortious, common law, statutory, federal, state, local, or otherwise, in the United States and throughout the world, whether known or unknown, which any of the Comarco Releasors has or may have had since the beginning of time, by reason of any matter, cause, or thing whatsoever, including, without limitation, any claims or liabilities arising out of or relating to the Comarco IP, the SPDA, or any facts, events or conduct that was actually alleged, or that may or could have been alleged, in the Dispute including, but not limited to, the infringement of any Comarco IP, the breach of the SPDA, or any liability by reason of any Successor Allegations (“Comarco Released Claims”).

 

4.2     Waiver of California Civil Code § 1542. Comarco acknowledges that it understands the significance and potential consequences of its release of Comarco Released Claims, including, without limitation, any unknown claims. Comarco intends that the claims released by it under this Agreement be construed as broadly as possible and agrees that it waives and relinquishes all rights and benefits it may have under Section 1542 of the Civil Code of the State of California, or any similar statute or law of any other jurisdiction. Section 1542 reads as follows: 

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

4.3     Covenant Not to Sue. Comarco Releasors, on behalf of itself and its past, present, and future heirs, executors, successors, assigns, agents and all other persons and entities associated with any of them, covenant that they will not at any time, whether individually or collectively and whether now or in the future, sue, file, assist, or participate in, or cause, assert, or induce any other person or entity to sue, file, assert, or participate in any claim or allegation against (i) TI and/or FT 1; (ii) their respective past, present and future owners, shareholders, parents, subsidiaries, predecessors, successors, assigns, divisions, units, officers, directors, employees, contractors, agents, attorneys, or representatives, heirs or executors; (iii) their respective past, present and future vendors, suppliers, manufacturers, distributors, customers, or end-users; or (iv) any other entity associated in any way with the making, assembling, using, offering for sale, selling, importing, exporting, distribution, repair, reconstruction, and/or maintenance of any products for infringement, breach, misuse, or misappropriation of the Comarco IP, where any of such allegations and/or claims is based on or related to the making, assembly, using, selling, offering for sale, importing, exporting, distribution, repair, reconstruction, and/or maintenance of any products made by or for, sold or offered for sale by Targus or Targus’ customers (“Targus Products”), whether prior to, on, or after the Effective Date of this Agreement. This covenant not to sue does not inure to the benefit of any third parties for their conduct that is unrelated to Targus or unrelated to products made by or for, sold or offered for sale by Targus (“Non-Targus Products”). The Parties agree that this covenant not to sue shall not prevent Comarco from instituting or prosecuting a lawsuit or other action against a third party for making, selling, importing, exporting, or offering for sale Non-Targus Products; provided, however, that Comarco may prosecute a lawsuit or action against such third party if, and only to the extent that, the alleged liability of that third party to Comarco stems from or relates to Non-Targus Products.

 

 

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SECTION V
CONFIDENTIALITY

 

5.1     Confidentiality. The Parties shall keep the terms of this Agreement confidential and shall not disclose to any third party, except for their respective attorneys, advisors, and accountants, and additionally on the part of Targus to Targus’ suppliers, vendors, and manufacturers, the terms of this Agreement, until such information becomes known to the public through no fault of the disclosing Party or unless such information is required to be disclosed: (i) by law or court order, (ii) for compliance with an auditor's request for information, (iii) in connection with a merger, sale of all or substantially all the voting stock or assets, or the issuance of securities (in each case solely to a third party that has executed a confidentiality agreement containing substantially similar terms and conditions), (iv) for compliance with governmental or regulatory requirements, (v) for compliance with the disclosure provisions of Subsection 5.2, infra, of this Agreement, or (vi) in furtherance of enforcing this Agreement in the event any of the Parties hereto materially breach this Agreement; provided, however, that in the event that such information is required to be so disclosed, including, without limitation, pursuant to any regulation of any securities exchange, securities trading system or similar regulatory body, the Party that is required to disclose such information shall use its reasonable efforts to obtain confidential treatment of such information pursuant to the applicable rules regarding obtaining confidential treatment.  Such Party shall give the other Party prior written notice of such occurrence and shall incorporate the reasonable comments of the other Party into the request for confidential treatment.. Notwithstanding the foregoing, the Parties may inform any third parties that the Litigation has been settled provided that the Parties do not disclose the other terms of this Agreement to such third parties, except as otherwise permitted by the first sentence in this Subsection 5.1. Furthermore, notwithstanding the forgoing, Targus may also inform its customers, end-users and any other interested persons or entities that the making, assembly, use, offer for sale, sale, importation, exportation, distribution, repair, reconstruction, and maintenance of any products now or hereafter made by or for, sold or offered for sale by Targus, their respective suppliers, vendors, customers, and/or end-users are free from any claim of infringement of the Comarco IP by virtue of a license granted to Targus.

 

5.2.    Acknowledgment of License. Notwithstanding the foregoing Subsection 5.1, Comarco agrees to sign, in connection with the execution of this Agreement, an Acknowledgment of License in the form attached hereto as Exhibit C (“Acknowledgment”) and further agrees that Targus may provide copies of the Acknowledgment to its respective customers, distributors, suppliers, and any other interested persons or entities.

 

 

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SECTION VI
REPRESENTATIONS AND WARRANTIES

 

6.1     Mutual Representations and Warranties. Each Party represents and warrants to the other Party that: (i) it has the authority to enter into this Agreement; (ii) its signatories have been properly authorized to enter into this Agreement and to perform all of the covenants and agreements stated herein; (iii) it has not sold, assigned, transferred, hypothecated, pledged, encumbered, or otherwise disposed of, in whole or in part, voluntarily or involuntarily, any claim, cause of action, counterclaim, liability, damage, loss, debt, demand, obligation, suit, cost, expense, fee, or otherwise that has been released, remised, or discharged pursuant to this Agreement; (iv) this Agreement has been executed freely and voluntarily, without economic compulsion or other duress, and with full knowledge of its legal significance and consequences; and (v) it has entered into the Agreement regardless of and without reliance on any witness or expert testimony generated during the Litigation or documents produced or not produced during the Litigation. 

 

6.2     Representations and Warranties by Comarco to Targus. Comarco represents and warrants that it is the true and sole owner of the Comarco IP. Comarco represents and warrants to Targus that Comarco will not assign, transfer, and/or otherwise convey, whether individually or collectively, any ownership rights or exclusive licenses in, to, or under any of the Comarco IP unless any such assignee, transferee, or the like first agrees in writing that it is bound by and subject to the terms, conditions, and provisions of this Agreement, including, but not limited to, the releases, licenses and covenants granted by Comarco in this Agreement. Comarco agrees to provide Targus with notice of any such assignment, transfer, or conveyance of rights in, to or under any of the Comarco IP within 30 days of such assignment, transfer or conveyance.

 

SECTION VII
MISCELLANEOUS PROVISIONS

 

7.1     Denial of Liability. Neither this Agreement nor anything in this Agreement shall be construed as an admission by any Party or by any other person or entity of any fault or any liability to any other Party or to any other person or entity or to the validity, enforceability or infringement of the Comarco IP.

 

7.2     Integration and Release. This Agreement is the final and complete agreement between Comarco, on the one hand, and Targus, on the other hand, with regard to its subject matter. All prior written and oral negotiations, representations, agreements, and warranties related to or pertaining to this Agreement and the subject matter of this Agreement, are superseded by and merged into this Agreement. Comarco, on the one hand, and Targus, on the other hand, release each other from any separate liability related to such prior negotiations, representations, agreements, and warranties. 

 

7.3     Modification of Agreement. No amendment, alteration, or modification to any of the provisions of this Agreement shall be valid unless made in writing and signed by the Party to be bound. 

 

 

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7.4     Interpretation. The Parties have had the opportunity to negotiate the terms of this Agreement, and no Party shall be deemed the drafter of all or any portion of this Agreement for purposes of interpretation. The terms of this Agreement shall be binding and shall be strictly construed in any proceeding relating or pertaining to this Agreement. Without affecting the obligations of the Parties otherwise expressed, the term "shall" when used in connection with any act or obligation to be undertaken means an affirmative obligation. The term "including" shall mean "including but not limited to." All terms shall be construed in the masculine or feminine and in plural or singular as required by the context in which the term is used.

 

7.5     Headings. The headings hereof are inserted merely for convenience and shall not be used to construe or modify the terms of this Agreement in any respect. 

 

7.6     Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the United States of America and, to the extent applicable, the laws of the State of California, without regard to its conflict or choice of law provisions. Any action to enforce this Agreement shall be brought in a federal or state court of competent jurisdiction in the County of Orange, State of California. 

 

7.7     Enforcement; Legal Fees. If any legal proceeding is instituted by any Party to enforce the terms of this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees and costs incurred in connection with such proceeding. 

 

7.8     Severability. If any one or more of the provisions of this Agreement is held to be invalid, illegal, or unenforceable in any respect, the other provisions shall remain in full force and effect. Any provision deemed invalid, illegal, or unenforceable because its scope is considered excessive shall be modified only to the minimum extent necessary to render the provision valid, legal, and enforceable. 

 

7.9     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original agreement and all of which shall be deemed a single instrument. 

 

7.10   No Relationship Between the Parties. This Agreement does not create an employment, partnership, joint venture, or agency relationship between the Parties of any kind or nature, nor does this Agreement create any obligation by Targus to sell any (or any particular quantity of) Licensed Products. No Party shall have any right, power, or authority under this Agreement to act as a legal representative of the other Party, and no Party shall have any power to obligate or bind the other Party or to make any representations, express or implied, on behalf of or in the name of the other Party in any manner or for any purpose whatsoever. 

 

7.11   Successors and Assigns. This Agreement shall bind, and inure to the benefit of, the respective successors, assigns, and successors-in-interest of each of the Parties, provided, however, that any successor or assign of Targus that is an OEM shall agree to pay a royalty on all sales of Licensed Products in accordance with, and subject to, the terms of Section 2.2. All Parties hereby agree that this Agreement shall not terminate, and all parties shall remain bound hereby, upon the occurrence by, against or otherwise with respect to FT 1 or TI of (i) a proceeding seeking relief under Title 11 of the United States Code, as now constituted or hereafter amended, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law, (ii) an application for the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for FT 1 and/or TI or for a substantial part of either of their property or assets, (iii) a general assignment for the benefit of creditors or (iv) a winding-up, dissolution or liquidation.

 

 

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7.12   Waiver. The waiver of a breach hereunder may be effected only by a writing signed by the waiving party and shall not constitute, or be held to be, a waiver of any other or subsequent breach or to affect in any way the effectiveness of the provision in question.

 

7.13   Recitals/Exhibits. All recitals, terms, conditions, and provisions herein, and all exhibits attached hereto and referred to herein are integral parts of this Agreement.

 

7.14   Notices. Any demand, notice, report, request, or other communication required or permitted to be given under this Agreement shall be in writing and, unless otherwise provided herein, shall be deemed sufficiently given when actually delivered in person (including delivery by commercial services such as messengers) or when mailed by express, registered, or certified mail (postage prepaid) directed as follows:

 

	
If addressed to Comarco:
	
Comarco, Inc. 

28202 Cabot Road Suite 300

Laguna Niguel, CA 92677

Attn: Tom Lanni

Email: ****@****.com

	
with a copy to:
	
Julander, Brown & Bollard

9110 Irvine Center Drive

Irvine, CA 92618

Attn: William Bollard

Email: ****@****.com

fax: ***-***-****

	
If addressed to TI:
	
Targus International LLC

1211 N. Miller St.

Anaheim, CA 92806

Attn: General Counsel

Email: ****@****.com

fax: (***) ***-****

	
with a copy to:
	
Stroock & Stroock & Lavan LLP

180 Maiden Lane

New York, NY 10038-4982

Attn: Curt C. Mechling

Attn: Jayme T. Goldstein

Fax: (***) ***-****

	
If addressed to FT 1:
	
Chapman and Cutler LLP

Attn: Larry Halpin

Attn: Marina Zelinsky

1270 Avenue of the Americas

New York, NY 10020

Fax: (***) ***-****

 

or to such other names and addresses as may be specified from time to time in a written notice given by such party in accordance with this Subsection 7.14.

 

 

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7.15    Advice of Legal Counsel. Each Party has had the opportunity to obtain the advice of legal, accounting, and other professional advisers regarding the language in this Agreement. No Party has relied on legal counsel for another Party, and no legal counsel or other adviser for a Party shall have any duty or obligation to another Party. Each Party has read and understands this Agreement and is executing this Agreement as the Party's free act and without duress. Each Party agrees that it shall bear its own attorneys’ fees and costs incurred in connection with the Dispute and the negotiation and documentation of this Agreement.

 

IN WITNESS WHEREOF, THE PARTIES THROUGH THEIR AUTHORIZED REPRESENTATIVES HAVE DULY EXECUTED THIS AGREEMENT AS OF THE DATES SET FORTH BELOW.

 

	
 
	
FT 1, Inc. 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ John Brecker
	
 

	
 
	
Its:
	
President
	
 

	 	 	 	 
	
 
	
Date:
	
March 26, 2016
	
 

	 	 	 	 
	 	 	 	 
	 	Targus International LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Mikel Williams	 
	 	Its:	President & CEO	 
	 	 	 	 
	 	Date:	March 26, 2016	 
	 	 	 	 
	 	 	 	 
	 	Comarco, Inc.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Thomas W. Lanni	 
	 	Its:	President & CEO	 
	 	 	 	 
	 	Date:	March 26, 2016	 

  

 

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	 	Comarco Wireless Technologies, Inc.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Thomas W. Lanni	 
	 	Its:	President & CEO	 
	 	 	 	 
	 	Date:	March 26, 2016	 

 

 

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Exhibit A
WIRE TRANSFER INSTRUCTIONS

 

Destination Account Holder: Julander, Brown, Bollard & Chapman

9110 Irvine Center Drive

Irvine, California 92618

(***) ***-****

(***) ***-**** FAX

 

Destination ABA or Routing No.: *********

Swift Code: ********

Destination Account: Julander, Brown & Bollard, Client Trust Account, 

Account Number ************

 

Destination Bank Address:

***** ******** ****

***** ***** ****** *******

******* *****, ** *****

 

 

 

 

  

Exhibit b
LICENSED PRODUCTS

 

Licensed Products means and is defined as power adapters or power supplies incorporating any invention, patent, patent application (including power supplies or power adapters that are subject to United States Patents Nos. 7,999,412, 8,213,204, and 9,153,960, including any continuation, continuation-in-part, or divisional patent applications), technical information, specifications, designs, drawings, data, processes, formulae, know how, trade secrets, and other intellectual properties owned or licensed by Comarco, as of the Effective Date. Notwithstanding anything to the contrary contained herein, Licensed Products shall include any power adapter or power supply covered by any continuation, continuation-in-part, or divisional patent applications associated with United Patents Nos. 7,999,412, 8,213,204, and 9,153,960, regardless of whether such continuation, continuation-in-part, or divisional patent application is filed before or after the Effective Date. 

 

Although incorporated into the above definition, Comarco IP shall expressly include any intellectual property it asserted in the Litigation, including but not limited to power adapters and power supplies with:

 

	 	
1.
	
Interchangeable tips that enable charging of a Dell or HP laptop or netbook computer, any tip that provides a data signal to an electronic device, or any tip that has a memory containing information that is read by an electronic device;

	 	 	 
	 	
2.
	
The ability to simultaneously charge multiple devices, one of which is a laptop or netbook computer; or

	 	 	 
	 	
3.
	
Power adapters having a DC input converter, including but not limited to a cigarette lighter adapter, and an AC input converter, including but not limited to a common household power plug, with one or more DC output converters.

  

 

 

 

 

Exhibit C
ACKNOWLEDGMENT OF LICENSE

 

Each of the undersigned owners of various intellectual property (the “Comarco IP”) hereby acknowledges that they have granted a license to FT 1, Inc., formerly known as Targus Group International, Inc., and Targus International LLC, Inc. (individually or collectively, “Targus”) as follows:

 

Targus, including its respective parents, subsidiaries, affiliates, and its successors, assigns, divisions, units, and joint ventures, a nonexclusive, irrevocable, fully-paid-up (except as qualified with respect to “Extra OEM Products” and to successors or assigns) world-wide license and the ability to sub-license, if necessary (the “License”), to make, have made, assemble, have assembled, use, offer for sale, sell, import, export, offer to distribute, distribute, repair, reconstruct, or maintain the “Licensed Products” as defined in the License. This License also provides that Targus may sublicense its rights to vendors, suppliers, and manufacturers or other third parties as may be reasonably necessary to make Licensed Products or any component thereof solely for the benefit of and sale to Targus, and that Targus's distributors, customers, and end users have the right to use, sell, offer for sale, distribute, import, export, offer to distribute, distribute, repair, reconstruct, or maintain Licensed Products.

 

	
 
	
Comarco, Inc.
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Thomas W. Lanni
	
 

	
 
	
Its:
	
President & CEO
	
 

	
 
	
 
	
 
	
 

	 	Date:	March 26, 2016	 
	 	 	 	 
	 	 	 	 
	 	Comarco Wireless Technologies, Inc.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Thomas W. Lanni	 
	 	Its:	President & CEO	 
	 	 	 	 
	 	Date:	March 26, 2016

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}]]