Document:

Exhibit 10.6

 

 

CHARTER
ANCILLARY AGREEMENT

 

by and
among

 

SHIP
FINANCE INTERNATIONAL LIMITED,

 

THE VESSEL
OWNING SUBSIDIARIES NAMED HEREIN,

 

FRONTLINE
LTD.

 

AND

 

FRONTLINE
SHIPPING LIMITED

 

 

 

CHARTER
ANCILLARY AGREEMENT

 

THIS CHARTER
ANCILLARY AGREEMENT is entered into as of January 1, 2004 by and among
Ship Finance International Limited, a Bermuda corporation (the “Company”), the
vessel owning subsidiaries named on Schedule A hereto (the “Owners”),
Frontline Ltd., a Bermuda corporation (“Frontline”), and Frontline Shipping
Limited, a Bermuda corporation (the “Charterer”).  The Company, the Owners, Frontline and the Charterer and any
Substitute Owners that execute counterpart signature pages pursuant to Section 8.6(b)
are collectively referred to herein as the “Parties.”

 

RECITALS:

 

WHEREAS, the
Owners are the owners of those vessels (the “Vessels”) set forth opposite their
names on Schedule A hereto;

 

WHEREAS, pursuant
to the Fleet Purchase Agreement, Frontline has agreed to sell to the Company,
and the Company has agreed to purchase from Frontline, either directly or
indirectly through intermediate holding companies, all of the issued and
outstanding shares of capital stock of each of the Owners on the terms and
subject to the conditions set forth therein;

 

WHEREAS, pursuant
to the Charters, each of the Owners has agreed to charter its Vessel to the
Charterer, on the terms and subject to the conditions set forth therein;

 

WHEREAS, pursuant
to the Management Agreements, Frontline Management has agreed to provide to the
Owners certain technical and operational management services with respect to
the Vessels, on the terms and subject to the conditions set forth therein;

 

WHEREAS, pursuant
to the Administrative Services Agreement, Frontline Management has agreed to
provide to the Company certain administrative support services, including
corporate compliance, payroll, tax, regulatory compliance, legal and other
administrative services, on the terms and subject to the conditions set forth
therein;

 

WHEREAS, pursuant
to the Performance Guarantee, Frontline has agreed to guarantee the performance
of the obligations of the Charterer under the Charters (other than the payment
of charter hire) and this Agreement and the obligations of Frontline Management
under the Management Agreements and the Administrative Services Agreement;

 

WHEREAS, the
Parties desire to enter into this Agreement to evidence the Parties’
understanding with respect to, among other things, the Charter Service Reserve,
the deferral of certain payments owing by the Charterer to the Owners under the
Charters in certain circumstances, the payment by the Charterer to the Company
of certain profit sharing bonus amounts and certain collateral arrangements
with respect to the Charterer’s obligations under this Agreement and the
Charters;

 

NOW, THEREFORE, in
consideration of the premises and the covenants, conditions, and agreements
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereto hereby
agree as follows:

 

 

ARTICLE I

DEFINITIONS; INTERPRETATION; EFFECTIVE DATE

 

1.1                               Definitions.

 

As used in this
Agreement, the following terms shall have the respective meanings set forth
below.  Capitalized terms that are used
but not defined herein shall have the meanings set forth in the Fleet Purchase
Agreement.

 

“Accumulated Off Hire Allowance” means, with
respect to a Vessel, the aggregate Off Hire Allowance for such Vessel giving
effect to the Off Hire Allowance for the calendar year in which such
determination is made and for all prior years from inception of its respective
Charter until any date of determination.

 

“Accumulated Off Hire Amount” means, with
respect to a Vessel, the aggregate Off Hire Amount for such Vessel from
inception of its respective Charter until any date of determination.

 

“Administrative Services Agreement” means
that certain Administrative Services Agreement, dated as of January 1,
2004, among Frontline Management, the Company and the Owners.

 

“Affiliate” of a Person means any Person
directly or indirectly controlling, controlled by, or under common control with
such Person.

 

“Agreement” means this Charter Ancillary
Agreement, as it may be amended, modified, or supplemented from time to time.

 

“Annual Financial Statements” has the
meaning set forth in Section 2.4(c).

 

“Bonus Deferral” has the meaning set forth
in Section 4.3(b).

 

“Bonus Payment” has the meaning set forth
in Section 4.1.

 

“Bonus Payment Date” has the meaning set
forth in Section 4.3(a).

 

“Bonus Payment Schedule” has the meaning
set forth in Section 4.2(a).

 

“Business Day” means any day other than (a)
Saturday or Sunday or (b) any other day on which banks in New York, New York or
Oslo, Norway are permitted or required to be closed.

 

“Cash” means United States currency on hand
and on deposit and demand deposits.

 

“Cash
Equivalents” means:

 

(1)                                  securities
issued or directly and fully guaranteed or insured by the United States
Government or any agency or instrumentality of the United States (provided that

 

2

 

the full faith
and credit of the United States is pledged in support thereof), having
maturities of not more than one year from the date of acquisition;

 

(2)                                  marketable
general obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition and, at the time of
acquisition, having a credit rating of “A” or better from either Standard &
Poor’s Ratings Services or Moody’s Investors Service, Inc.;

 

(3)                                  certificates
of deposit, time deposits, eurodollar time deposits, overnight bank deposits or
bankers’ acceptances having maturities of not more than one year from the date
of acquisition thereof issued by any bank or financial institution the
long-term debt of which is rated at the time of acquisition thereof at least
“A” or the equivalent thereof by Standard & Poor’s Ratings Services, or “A”
or the equivalent thereof by Moody’s Investors Service, Inc., and having
combined capital and surplus in excess of $500.0 million;

 

(4)                                  repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clauses (1), (2) and (3) entered into with any bank
meeting the qualifications specified in clause (3) above;

 

(5)                                  commercial
paper rated at the time of acquisition thereof at least “A-2” or the equivalent
thereof by Standard & Poor’s Ratings Services or “P-2” or the equivalent thereof
by Moody’s Investors Service, Inc., or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of investments, and in any case maturing within one
year after the date of acquisition thereof; and

 

(6)                                  interests in any
investment company or money market fund which invests primarily in instruments
of the type specified in clauses (1) through (5) above.

 

“Charter Service Reserve” means, at any time
of determination, all Cash and Cash Equivalents held by the Charterer, except
for any such Cash and Cash Equivalents in excess of the then applicable Minimum
Reserve.

 

“Charters” means those certain Time Charters,
dated as of January 1, 2004, between the Charterer and the Owners, in each
case with respect to the Vessel owned by each such Owner, as set forth on
Schedule A.

 

“Earnings Account”  has the meaning set forth in Section 2.5.

 

“Event of Default” means:

 

(a)                                  any material breach
by the Charterer of any provision of any Charter (including the failure to make
charter payments thereunder when due; provided, however, that the exercise by
the Charterer of its rights under Article III of this Agreement shall not
be deemed to be an Event of Default);

 

3

 

(b)                                 any material breach by
the Charterer or Frontline of any provision of this Agreement or the
Performance Guarantee;

 

(c)                                  any material breach
by Frontline Management of any provision of any Management Agreement; or

 

(d)                                 the failure of the
Charterer at any time to hold at least $55,000,000 in Cash or Cash Equivalents.

 

“Fleet Closing Date” has the meaning set
forth in Section 1.3.

 

“Fleet Purchase Agreement” means that
certain Fleet Purchase Agreement, dated as of December 11, 2003, between
Frontline and the Company.

 

“Frontline Management” means Frontline
Management (Bermuda) Ltd., a Bermuda corporation and wholly owned subsidiary of
Frontline.

 

“GAAP” means United States generally accepted
accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been approved
by a significant segment of the accounting profession, which are in effect from
time to time.

 

“Indebtedness” means at a particular time,
without duplication, (i) any indebtedness for borrowed money or issued in
substitution for or exchange of indebtedness for borrowed money, (ii) any
indebtedness evidenced by any note, bond, debenture or other debt security,
(iii) any indebtedness for the deferred purchase price of property or services
with respect to which a Person is liable, contingently or otherwise, as obligor
or otherwise, (iv) any commitment by which a Person assures a creditor against
loss (including, without limitation, contingent reimbursement obligations with
respect to letters of credit), (v) any indebtedness guaranteed in any manner by
a Person (including, without limitation, guarantees in the form of an agreement
to repurchase or reimburse), (vi) any obligations under capitalized leases with
respect to which a Person is liable, contingently or otherwise as obligor,
guarantor or otherwise, or with respect to which obligations a Person assures a
creditor against loss, and (vii) any indebtedness secured by a lien on a
Person’s assets; provided, however, that the obligations of the Charterer under
the Charters shall not be deemed to be Indebtedness.

 

“Lien” means any mortgage, pledge,
security interest, encumbrance, lien or charge of any kind (including any
agreement to give any of the foregoing, any conditional sale or other title
retention agreement, any lease in the nature thereof, and the filing of or
agreement to give any financing statement or like instrument under the laws of
any jurisdiction).

 

“Management
Agreements”
means those certain Management Agreements entered into or to be entered
into  between Frontline Management and
the Owners, in each case with respect to the Vessel owned by each such Owner,
as set forth on Schedule A.

 

4

 

“Minimum
Reserve”
means US$250,000,000 (provided, however, that the Minimum Reserve shall be
decreased by an amount equal to US$5,300,000 upon the termination of any
Charter after the date hereof other than by reason of default by the Charterer
under this Agreement or the Charters).

 

“Off Hire Allowance” means, for any calendar
year with respect to a Vessel,
an amount equal to 5 multiplied by the charter hire rate (set forth in Clause
44 of the applicable Charter) applicable to such Vessel under its respective
Charter.

 

“Off Hire Amount” means, with respect to a Vessel,
an amount equal to the number of days of actual off-hire for such Vessel
multiplied by the charter hire rate (set forth in Clause 44 of the applicable
Charter) applicable to such Vessel under its respective Charter.

 

 “Organizational Documents”
means, with respect to a particular Person (other than an individual), the
certificate or articles of incorporation, bylaws, partnership agreement,
limited liability company agreement or similar organizational document or
agreement, as applicable, of such person.

 

“Payment Date”  has the meaning set forth in Section 2.2(i).

 

“Performance Guarantee” means that certain
Performance Guarantee, dated as of the date hereof, issued by Frontline in
favor of the Company and the Owners.

 

“Permitted Liens” means:

 

(a)                                  Liens for taxes or
assessments that are not yet delinquent or, if delinquent, are being contested
in good faith by appropriate actions and for which adequate reserves or other
appropriate provisions, if any, as required by GAAP, have been established;

 

(b)                                 materialmen’s,
mechanic’s, repairman’s, employee’s, contractor’s, operator’s and other similar
Liens or charges arising in the ordinary course of business for amounts that
are not yet delinquent (including any amounts being withheld as provided by
law), or if delinquent, are being contested in good faith by appropriate
actions and for which adequate reserves or other appropriate provisions, if
any, as required by GAAP, have been established;

 

(c)                                  vessel chartering,
drydocking or maintenance, the furnishing of supplies and bunkers to vessels,
repairs and improvements to vessels, crews’ wages and other maritime Liens
incurred in the ordinary course of business;

 

(d)                                 Liens for salvage and
general average; and

 

(e)                                  easements,
rights-of-way, servitudes, permits, surface leases and other rights in respect
of surface operations arising or incurred in the ordinary course of business.

 

5

 

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

 

“Quarterly Financial Statements” has the
meaning set forth in Section 2.4(b).

 

“Security Interests” has the meaning set
forth in Section 5.1.

 

“Subsidiaries” means the Owners and any other
current or future direct or indirect subsidiary of the Company.

 

“Substitute Owner” has the meaning set forth
in Section 8.6(b).

 

“Successful Public Listing” means the
completion of one or more transactions that result in at least 20% of the then
outstanding common stock of the Company being listed or quoted for public
trading on the Oslo Stock Exchange, the New York Stock Exchange, the American
Stock Exchange, the Nasdaq National Market System or other United States
national securities exchange.

 

“Suezmax” means each of the Vessels that is
classified as a Suezmax tanker vessel (between 120,000 and 200,000 dwt).

 

“Suezmax Bonus Amount”
means the portion of a Bonus Payment for any period of determination attributable
to the Suezmaxes and shall be calculated in accordance with the following
formula:

 

Suezmax Bonus Amount = 0.20 x (TCE revenues
of Suezmaxes – ($21,100 x number of days during the period of determination x
Number of Suezmaxes))

 

where (i) “TCE revenues of
Suezmaxes” means the revenues of the Charterer on a time charter equivalent
basis attributable to the Suezmaxes during such period of determination
(calculated in a manner consistent with that used in Frontline’s public
reports) and (ii) “Number of Suezmaxes” means the weighted average number of
Suezmaxes during such period of determination; and provided that (x) for
purposes of calculating bareboat revenues on a time charter equivalent basis,
expenses shall be assumed to equal $6,500 per day and (y) no non-double-hulled
Vessels shall be included in the calculation of the Suezmax Bonus Amount for
any period after 2010.

 

 “Vessels”
has the meaning set forth in the first recital.

 

“VLCC” means each of the Vessels that is
classified as a VLCC tanker vessel (between 200,000 and 320,000 dwt).

 

“VLCC Bonus Amount”
means the portion of a Bonus Payment for any period of determination
attributable to the VLCCs and shall be calculated in accordance with the
following formula:

 

6

 

VLCC Bonus Amount = 0.20 x (TCE revenues of
VLCCs – ($25,575 x number of days during the period of determination x Number
of VLCCs))

 

,

 

where (i) “TCE revenues of
VLCCs” means the revenues of the Charterer on a time charter equivalent basis
attributable to the VLCCs during such period of determination (calculated in a
manner consistent with that used in Frontline’s public reports) and (ii)
“Number of VLCCs” means the weighted average number of VLCCs during such period
of determination; and provided that (x) for purposes of calculating bareboat
revenues on a time charter equivalent basis, expenses shall be assumed to equal
$6,500 per day and (y) no non-double-hulled Vessels shall be included in the
calculation of the VLCC Bonus Amount for any period after 2010.

 

1.2
References; Headings; Interpretation.  All references in this Agreement to Annexes,
Exhibits, Schedules, Articles, Sections, subsections and other subdivisions
refer to the corresponding Annexes, Exhibits, Schedules, Articles, Sections,
subsections and other subdivisions of or to this Agreement unless expressly
provided otherwise.  Titles appearing at
the beginning of any Articles, Sections, subsections or other subdivisions of
this Agreement are for convenience only, do not constitute any part of this
Agreement, and shall be disregarded in construing the language hereof.  The words “this Agreement,” “herein,”
“hereby,” “hereunder” and “hereof” and words of similar import refer to this
Agreement as a whole and not to any particular subdivision unless expressly so
limited.  The words “this Article,”
“this Section” and “this subsection” and words of similar import refer only to
the Article, Section or subsection hereof in which such words
occur.  The word “or” is not exclusive,
and the word “including” (in its various forms) means including without
limitation. Pronouns in masculine, feminine or neuter genders shall be
construed to state and include any other gender, and words, terms and titles
(including terms defined herein) in the singular form shall be construed to
include the plural and vice versa, unless the context otherwise requires.

 

1.3
Effective Date.  This Agreement shall be effective as of the
date ( the “Fleet Closing Date”) on which the Company has completed the
purchase from Frontline of the Interests (as defined in the Fleet Purchase
Agreement), directly or indirectly through intermediate holding companies, in
at least 45 of the Vessel Owning Subsidiaries set forth on Schedule 3.19
to the Fleet Purchase Agreement.

 

ARTICLE II

COVENANTS

 

2.1 Charter Service
Reserve

 

(a)                                  On
or prior to the Fleet Closing Date, Frontline will make a capital contribution
to the Charterer of Cash or Cash Equivalents in an amount equal to at least
US$250,000,000 to initially fund the Charter Service Reserve.

 

(b)                                 The
Charterer shall be entitled to use the Charter Service Reserve only (i) to make
charter payments to the Company under any Charter or (ii) for reasonable
working capital purposes to meet short-term voyage expenses.

 

7

 

2.2                               Negative Covenants of the Charterer.  The Charterer hereby covenants and
undertakes with the Company and each of the Owners that the Charterer will not,
without the consent of the Company:

 

(a)                                  amend
its Organizational Documents in a manner that would adversely affect the
Company;

 

(b)                                 take
any action, or omit to take any action, which could reasonably be expected to
result in a violation of its Organizational Documents;

 

(c)                                  fail
at any time to have at least one independent director in accordance with its
Organizational Documents;

 

(d)                                 engage
in any business other than the operation and chartering of the Vessels and the
activities incidental thereto;

 

(e)                                  incur
any Indebtedness, other than trade payables and other current liabilities
incurred in the ordinary course of business;

 

(f)                                    enter
into any transaction that involves (i) a sale, exchange or other
disposition of all or substantially all of the assets of the Charterer and its
subsidiaries taken as a whole, (ii) a sale, exchange or other disposition of
all or substantially all of the assets of any subsidiary of the Charterer or
(iii) any merger, consolidation or business combination of the Charterer
or any of its subsidiaries with another Person (other than a merger, consolidation
or business combination among two or more of such subsidiaries);

 

(g)                                 enter
into any transaction with any Affiliate (other than the Company or any
Subsidiary), except for any such transaction entered into on an arm’s-length
basis and on terms no less favorable to the Charterer than would be available
from a disinterested or unconnected third party;

 

(h)                                 permit
the incurrence of any Lien on any of its assets, other than Permitted Liens and
other than as contemplated by Article V (Collateral Arrangements);

 

(i)                                     declare
or make any dividend or distribution of any kind whatsoever to its shareholders
(including through a buyback, redemption or repurchase of its securities) or
loan, repay or make any other payment in respect of Indebtedness of the Charterer
or any affiliate thereof (other than the Company and the Subsidiaries) unless
(i) the Charterer is then in compliance with all of its obligations under this
Agreement, (ii) after giving effect to the declaration or payment of any such
dividend or distribution or loan or payment in respect of such Indebtedness,
(A) the Charterer will continue to be in compliance with all of its
obligations under this Agreement, (B) the Charter Service Reserve equals
at least the then applicable Minimum Reserve and (C) the chief financial
officer of the Charterer certifies to the Company that he reasonably believes
that the amount of the Charter Service Reserve will equal or exceed the then
applicable Minimum Reserve for at least 30 days after the date of any such
payment (each, a “Payment Date”), taking into consideration the Charterer’s
reasonably expected payment obligations during such 30-day period, (iii) any
charter payments deferred pursuant to Article III have been paid to

 

8

 

the Company prior to any such Payment Date and (iv) any Bonus Payments
deferred pursuant to Article IV have been paid to the Company prior to any
such Payment Date;

 

(j)                                     issue
or grant to any Person other than Frontline any shares of capital stock or
other ownership interests in the Charterer or any warrants, options,
convertible or exchangeable securities or indebtedness, or any other rights to
purchase or acquire, or exercisable for or convertible into or exchangeable
into, any such shares of capital stock or such other ownership interests; and

 

(k)                                  make
any investment in, acquire or purchase any stock, partnership or joint venture
interest or other security of, or loan, advance or contribute capital to, or
grant a financial guaranty or other similar assurance for the benefit of,
another Person, other than investments in short-term interest bearing
marketable securities;

 

2.3
Covenants of Frontline.  Frontline hereby covenants and undertakes
with the Company and each of the Owners that:

 

(a)                                  the
Charterer will at all times be a wholly owned subsidiary of Frontline; and

 

(b)                                 except
as contemplated by Article V, Frontline will not sell, transfer, assign or
otherwise dispose of legal or beneficial ownership of any securities of the
Charterer held by Frontline.

 

2.4
Financial Statements and
Other Information.  The
Charterer hereby covenants and undertakes with the Company that it will deliver
to the Company:

 

(a)                                  as soon as
practicable and in any event within (i) 10 days after the end of each month in
each fiscal year or (ii) two Business Days after request by the Company, a
certificate executed by its chief financial officer which (1) sets forth the
balance of the Charter Service Reserve as of the beginning and end of such
month, (2) sets forth in reasonable detail all payments into and from the
Charter Service Reserve during such month and (3) provides that no Event of
Default is then occurring or, if there is an Event of Default then occurring,
describes in reasonable detail such Event of Default;

 

(b)                                 following a Successful
Public Listing, as soon as practicable and in any event within 45 days after
the end of each quarterly period (other than the last quarterly period) in each
fiscal year, consolidated statements of income, changes in stockholders’ equity
and changes in financial position of the Charterer for such quarterly period
and for the period from the beginning of the current fiscal year to the end of
such quarterly period, and a consolidated balance sheet of the Charterer as at
the end of such quarterly period, all unaudited but prepared in accordance with
GAAP on a basis consistent with past practice (collectively, the “Quarterly
Financial Statements”); and

 

(c)                                  following a
Successful Public Listing, as soon as practicable and in any event within 120
days after the end of each fiscal year, consolidated statements of income,
changes in stockholders’ equity and changes in financial position of the
Charterer for such year, and a consolidated balance sheet of the Charterer as
at the end of such year, in each case audited for the Charterer by independent
public accountants of

 

9

 

recognized standing selected by the
Charterer, whose report shall state that such consolidated financial statements
present fairly the results of operations, cash flows and financial position of
the Charterer in accordance with GAAP on a basis consistent with prior periods
except as noted therein and that the examination by such accountants has been
made in accordance with generally accepted auditing standards (collectively,
the “Annual Financial Statements”).

 

2.5                                                                               Earnings
Account.  The Charterer
shall cause all of its revenues to be deposited into an earnings account (the
“Earnings Account”).

 

ARTICLE III

DEFERRAL OF CHARTER PAYMENTS

 

3.1
Deferral of Charter Payments.  For any period during which the Cash and
Cash Equivalents held by the Charterer is less than $75,000,000, each Owner
agrees that the Charterer shall be entitled to defer from the monthly payments
due under each Charter up to $4,600 per day for each VLCC and up to $3,400 per
day for each Suezmax; provided, however, that in no event shall any such
deferral with respect to any particular Charter be outstanding with respect to
more than one year at any given time. 
The Charterer shall immediately use all charter payments received by the
Charterer from third parties under any subcharters with respect to the Vessels
that are in excess of the then applicable fixed daily charter rates for such
Vessels payable to the Company under the applicable Charters to pay any amounts
so deferred at such time as the Cash and Cash Equivalents held by the Charterer
are greater than $75,000,000; provided, however, that the Charterer shall not
be obligated to make any such payment (x) if the chief financial officer of the
Charterer reasonably believes that the amount of Cash and Cash Equivalents held
by the Charterer will not equal or exceed $75,000,000 for at least 30 days
after the date of such payment taking into consideration the Charterer’s
reasonably expected payment obligations during such 30-day period and (y) until
such payment would be at least $2,000,000. 
The Charterer shall not be obligated to pay any interest on any amounts
so deferred.

 

3.2
Notice of Deferral.  The Charterer shall promptly notify the
Company in accordance with Section 7.6 of its decision to exercise its
right to defer payments under Section 3.1 and shall provide the Company
with a certificate executed by the chief financial officer of the Charterer, setting
forth in reasonable detail the basis for such deferral.

 

ARTICLE IV

BONUS PAYMENTS

 

4.1
Bonus Payments.  The Charterer shall pay to the Company
periodic profit sharing bonus payments (each, a “Bonus Payment”) equal to (a)
the VLCC Bonus Amount for the applicable period plus (b) the Suezmax Bonus
Amount for the applicable period (provided, however, that in no event shall
such Bonus Payment be less than $0), as determined in accordance with the terms
of this Article IV.

 

4.2 Preparation and
Delivery of Bonus Payment Schedules.

 

(a)                                  No
later than March 1, 2005, the Charterer shall prepare or cause to be
prepared, and shall deliver to the Company, a schedule (each, a “Bonus
Payment

 

10

 

Schedule”) with respect to the
period from February 1, 2004 through December 31, 2004.  Such Bonus Payment Schedule shall set
forth, in each case with respect to such period, (i) the TCE revenues of the
VLCCs, (ii) the TCE revenues of the Suezmaxes and (iii) the Charterer’s
calculation of the VLCC Bonus Amount, the Suezmax Bonus Amount and the Bonus
Payment, if any.  The Charterer shall
thereafter provide to the Company such supporting work papers or other
supporting information as may be reasonably requested by the Company.  Such Bonus Payment Schedule shall be
prepared in accordance with GAAP, consistent with the preparation of
Frontline’s accounts, and shall be certified by the chief financial officer of
the Charterer and, if requested by the Company, the Charterer’s independent accountants.

 

(b)                                 No
later than March 1 of each calendar year after 2005, the Charterer shall
prepare or cause to be prepared, and shall deliver to the Company, a Bonus
Payment Schedule with respect to the preceding calendar year.  Each Bonus Payment Schedule shall set
forth, in each case with respect to the preceding calendar year, (i) the TCE
revenues of the VLCCs, (ii) the TCE revenues of the Suezmaxes and (iii) the
Charterer’s calculation of the VLCC Bonus Amount, the Suezmax Bonus Amount and
the Bonus Payment, if any.  The
Charterer shall thereafter provide to the Company such supporting work papers
or other supporting information as may be reasonably requested by the
Company.  Such Bonus Payment
Schedule shall be prepared in accordance with GAAP, consistent with the
preparation of Frontline’s accounts, 
and shall be certified by the chief financial officer of the Charterer
and, if requested by the Company, the Charterer’s independent accountants.

 

4.3
Delivery of Bonus Payment.

 

(a) Subject to
the other provisions of this Section 4.3, any Bonus Payments determined to
be payable by the Charterer to the Company shall be made by wire transfer of
immediately available funds to the wire transfer address of the Company no
later than five Business Days following the date on which the Charterer is
required to deliver the corresponding Bonus Payment Schedule (each, a
“Bonus Payment Date”), which wire transfer address shall be designated by the
Company by notice to the Charterer on or before the second Business Day prior to
such Bonus Payment Date; provided that if no such notice is delivered by the
Company, the Charterer shall make payment to the wire transfer address
previously designated by the Company.

 

(b)                                 If
(i) the amount of the Charter Service Reserve on any Bonus Payment Date is less
than the then applicable Minimum Reserve or (ii) the payment of any Bonus
Payment on any such Bonus Payment Date would cause the amount of the Charter
Service Reserve to fall below the then applicable Minimum Reserve, then the
Charterer shall be entitled to defer without interest the payment of (x) in the
case of clause (i) above, all or any portion of such Bonus Payment and (y) in
the case of clause (ii) above, all or any portion of an amount equal to (1) the
amount of such Bonus Payment minus (2) the difference between (A) the amount of
the Charter Service Reserve on such Bonus Payment Date prior to any such
payment minus (B) the then applicable Minimum Reserve (each, a “Bonus
Deferral”).

 

11

 

(c)                                  The
Charterer shall immediately use all charter payments received by the Charterer
from third parties under any subcharters with respect to the Vessels that are
in excess of the then applicable fixed daily charter rates for such Vessels
payable to the Company under the applicable Charters to pay any Bonus Payment
amounts so deferred at such time as the Charter Service Reserve equals or
exceeds the Minimum Reserve; provided, however, that the Charterer shall not be
obligated to make any such payment (x) if the chief financial officer of the
Charterer reasonably believes that the amount of the Charter Service Reserve
will not equal or exceed the Minimum Reserve for at least 30 days after the
date of such payment taking into consideration the Charterer’s reasonably
expected payment obligations during such 30-day period and (y) until such
payment would be at least $2,000,000.

 

(d)                                 Prior
to any such deferral of any Bonus Payment, the Charterer shall provide the
Company with a certificate executed by the chief financial officer of the
Charterer, setting forth the amount of the Charter Service Reserve on such
Bonus Payment Date.

 

4.4
Marketing; Preferential Treatment. 
During the term of this Agreement, the Charterer shall
use its commercial best efforts to charter the Vessels on market terms
(including, without limitation, ensuring that preferential treatment is not
given to any other vessels owned, managed by or under control of Frontline or
any of its affiliates (including, without limitation, Greenwich Holdings Ltd
and any affiliates thereof) when marketing any of the Vessels).

 

ARTICLE V

COLLATERAL ARRANGEMENTS

 

5.1
.Collateral.  The Charterer, the Company and Frontline
covenant and agree that the Charterer’s obligations under this Agreement and
the Charters shall be secured by (a) a first priority floating charge over all
of the undertaking and all of the assets and rights (including the Earnings
Account and Charter Service Reserve) of the Charterer whatsoever and
wheresoever both present and future and (b) a first priority fixed charge over
all outstanding capital stock of the Charterer (collectively, the “Security
Interests”).  The Charterer and
Frontline agree that they shall execute such documents and do such things as
may reasonably be required by the Company’s lenders in order to give full
effect to their covenants in this Section 5.1.

 

ARTICLE VI

OFF-HIRE

 

6.1  Off-Hire.  Irrespective of the actual number of days
off-hire for any one Vessel under its respective Charter, the Charterer agrees
to continue to pay the agreed charter hire payments under the Charter to the
Owner of such Vessel, and will not deduct for any off-hire, as long as the
aggregate Accumulated Off Hire Amount for all Vessels then in the fleet is less
than or equal to the aggregate Accumulated Off Hire Allowance for all such
Vessels.

 

12

 

6.2 Off-Hire
Certifications.

 

(a)                                  In
any month in which the Charterer makes any deductions for off-hire from any
charter hire payments due under any Charter, the Charterer shall, concurrently
with such monthly charter hire payment, provide the Company with a certificate
executed by an officer of the Charterer, setting forth in reasonable detail the
basis for such deduction.

 

(b)                                 No
later than February 1 of each calendar year, the Charterer shall promptly
provide the Company with a certificate executed by the chief financial officer
of the Charterer, setting forth in reasonable detail (i) the aggregate
Accumulated Off Hire Allowance for all Vessels in the fleet and (ii) the
aggregate Accumulated Off Hire Amount for all Vessels in the fleet, in each
case as of the end of the preceding calendar year.

 

ARTICLE VII

DEFAULTS

 

7.1
Defaults.  Upon the occurrence of any Event of Default
that remains uncorrected for a period of 30 days following notice thereof by
the Company to the Charterer, then the Company shall have the option to declare
such Event of Default to be a breach by the Charterer of any or all of the
Charters, in which case the Company or the Owners may (a) terminate any or all
of the Charters by delivery of notice to the Charterer in accordance with
Section 8.7, (b) foreclose upon any or all of the Security Interests or
(c) exercise any or all other rights and remedies available to the Company or
the Owners at law or in equity.

 

ARTICLE VIII

MISCELLANEOUS

 

8.1
Term. 
Following effectiveness in accordance with
Section 1.3, this Agreement shall terminate upon the termination of the
last Charter then in effect; provided, however, that the termination of this
Agreement shall not impair any rights or obligations of any Party arising
hereunder prior to such termination.

 

8.2
Choice of Law.  This Agreement shall be governed by and
construed in accordance with the laws of England.

 

8.3
Arbitration.  Any dispute arising under this Agreement
shall be resolved by arbitration in London in accordance with the provisions
this Section 8.3 and the provisions of the Arbitration Act 1996, or any
statutory modification or re-enactment thereof for the time being in force save
to the extent necessary to give effect to the provisions of this
Section 8.3.  The arbitration shall
be conducted in accordance with the London Maritime Arbitrators Association
(LMAA) on terms current at the time when the arbitration proceedings are commenced.  The reference shall be to three arbitrators:
one to be appointed by the Company and the Owners, one to be appointed by the
Charterer and Frontline and the third to be appointed by the two arbitrators so
chosen,  The decision of a majority of
the arbitrators shall be final and binding on the Parties.  Nothing herein shall prevent the parties
from agreeing in writing to vary these provisions to provide for the
appointment of a sole arbitrator.  In
cases where neither the claim nor any counterclaim exceeds the sum of US$50,000
(or such other sum as the parties may

 

13

 

agree) the arbitration shall be
conducted in accordance with the LMAA Small Claims Procedure current at the
time when the arbitration proceedings are commenced.

 

8.4
Entire Agreement.  This Agreement
constitutes the entire agreement of the Parties relating to the matters
contained herein, superseding all prior contracts or agreements, whether oral
or written, relating to the matters contained herein.

 

8.5
Amendment or Modification.  This Agreement may be amended or modified
from time to time only by the written agreement of all of the Parties.

 

8.6 Assignment;
Joinder.

 

(a)  No Party shall have the right to assign its
rights or obligations under this Agreement without the consent of the other
Parties hereto.

 

(b).  Each of the Parties acknowledges that the
Fleet Purchase Agreement provides for the purchase by the Company of all of the
issued and outstanding shares of capital stock of one or more vessel-owning
entities owned by Frontline (each, a “Substitute Owner”) in place of one or
more of the Vessel Owning Subsidiaries set forth on Schedule 3.19 to the
Fleet Purchase Agreement in certain circumstances.  In the event that the Company acquires any such Substitute Owner,
Frontline and the Company agree that they shall cause such Substitute Owner (if
it owns its vessel directly) or the subsidiary of such Substitute Owner that
owns such vessel directly (if such Substitute Owner does not own its vessel
directly) to become an Owner hereunder by executing a counterpart signature
page to this Agreement, in the form attached hereto, prior to the closing under
the Fleet Purchase Agreement of the acquisition of such Substitute Owner.  The Parties agree that such Substitute Owner
or such Substitute Owner’s subsidiary, as the case may be, shall be deemed to
be a Party and that the vessel owned by such Substitute Owner or such
Substitute Owner’s subsidiary, as the case may be, shall be deemed to be a
Vessel for all purposes under this Agreement. 
The Parties further agree that the Owner for which such Substitute Owner
or such Substitute Owner’s subsidiary, as the case may be, was substituted
shall no longer be deemed to be a Party and that the vessel owned by such Owner
shall no longer be deemed to be a Vessel for any purpose under this Agreement.

 

8.7
Notices.  Unless otherwise provided herein, any
notice, request, consent, instruction or other document to be given hereunder
by any Party to another Party shall be in writing and will be deemed given
(a) when received if delivered personally or by courier; or (b) on
the date receipt is acknowledged if delivered by certified mail, postage
prepaid, return receipt requested or (c) on the day of transmission if
sent by facsimile transmission and receipt thereof is confirmed, as follows:

 

(a)                                  if
to the Company, addressed to:

 

Ship Finance International
Limited

Par-La-Ville Place

14 Par-La-Ville Road

Hamilton, Bermuda HM 08

 

14

 

Attention:  Finance Department

Facsimile: +1 (441) 295-3494

 

(b)                                 if
to any Owner, c/o the Company at the Company’s address set forth above;

 

(c)                                  if
to Frontline, addressed to:

 

Frontline Ltd.

Par-La-Ville Place

14 Par-La-Ville Road

Hamilton, Bermuda HM 08

Attention:  Finance Department

Facsimile: +1 (441) 295-3494

 

(d)                                 if
to the Charterer, c/o Frontline at Frontline’s address set forth above;

 

or to such other place and with such other
copies as any Party may designate as to itself by written notice to the others
in accordance with this Section 7.6.

 

8.8
Counterparts.  This Agreement may be executed in any number
of counterparts with the same effect as if all signatory parties had signed the
same document.  All counterparts shall
be construed together and shall constitute one and the same instrument.

 

8.9
Severability.  If any provision of this Agreement or the
application thereof to any Person or circumstance shall be held invalid or
unenforceable to any extent, the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by law.

 

8.10                        U.S. Currency.  All sums and amounts payable to or to be
payable pursuant to the provisions of this Agreement shall be payable in coin
or currency of the United States of America that, at the time of payment, is
legal tender for the payment of public and private debts in the United States
of America.

 

15

 

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized representatives as of the day and year first above written.

 

	
   

  	
  SHIP FINANCE INTERNATIONAL LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
   

  	
  GRANITE SHIPPING COMPANY LIMITED.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  	
  GOLDEN CURRENT LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  BONFIELD SHIPPING LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FOURWAYS MARINE LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT ARDENNE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT BRABANT INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

16

 

	
   

  	
  FRONT FALCON INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT GLORY SHIPPING INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT PRIDE SHIPPING INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT SAGA INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT SERENADE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT SPLENDOUR SHIPPING INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT STRATUS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

17

 

	
   

  	
  GOLDEN BAYSHORE SHIPPING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GOLDEN ESTUARY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GOLDEN FJORD CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GOLDEN SEAWAY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GOLDEN SOUND CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GOLDEN TIDE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  KATONG INVESTMENTS LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

18

 

	
   

  	
  LANGKAWI SHIPPING LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  PATRIO SHIPPING LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  RAKIS MARITIME S.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SEA ACE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SIBU SHIPPING LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST TANKERS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  WEST TANKERS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

19

 

	
   

  	
  PUERTO REINOSA SHIPPING CO S.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ASPINALL PTD LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  BLIZANA PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  BOLZANO PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CIREBON SHIPPING PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FOX MARITIME PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT DUA PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

20

 

	
   

  	
  FRONT EMPAT PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT ENAM PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT LAPAN PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT LIMA PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT TIGA PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT TUJUH PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONT SEMBILAN PTD LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

21

 

	
   

  	
  RETTIE PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  TRANSCORP PTE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  EDINBURGH NAVIGATION S.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ARIAKE TRANSPORT CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  HITATCHI HULL # 4983 CORP.]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  OSCILLA SHIPPING LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FRONTLINE
  SHIPPING LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

22

 

	
   

  	
  FRONTLINE LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

02089.0022 #446530

 

23

 

Counterpart Signature Page for
Substitute Owners pursuant to Section 8.6(b)

 

Pursuant to
Section 8.6(b) hereof, the undersigned hereby executes and delivers and
becomes an Owner under this Agreement as of the date set forth below.

 

 

	
   

  	
  [NAME OF SUBSTITUTE OWNER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

SCHEDULE A

OWNERS AND VESSELS

 

	
  Owner

  	
   

  	
  Vessel

  
	
  Granite Shipping
  Company Limited.

  	
   

  	
  Front Granite

  
	
  Golden Current Limited

  	
   

  	
  Opalia

  
	
  Bonfield Shipping Ltd.

  	
   

  	
  Front Driver

  
	
  Fourways Marine Limited

  	
   

  	
  Front Spirit

  
	
  Front Ardenne Inc.

  	
   

  	
  Front Ardenne

  
	
  Front Brabant Inc.

  	
   

  	
  Front Brabant

  
	
  Front Falcon Inc

  	
   

  	
  Front Falcon

  
	
  Front Glory Shipping
  Inc.

  	
   

  	
  Front Glory

  
	
  Front Pride Shipping
  Inc.

  	
   

  	
  Front Pride

  
	
  Front Saga Inc

  	
   

  	
  Front Page

  
	
  Front Serenade Inc.

  	
   

  	
  Front Serenade

  
	
  Front Splendour
  Shipping Inc.

  	
   

  	
  Front Splendour

  
	
  Front Stratus Inc.

  	
   

  	
  Front Stratus

  
	
  Golden Bayshore
  Shipping Corporation

  	
   

  	
  Navix Astral

  
	
  Golden Estuary
  Corporation

  	
   

  	
  Front Comanche

  
	
  Golden Fjord
  Corporation

  	
   

  	
  Front Commerce

  
	
  Golden Seaway
  Corporation

  	
   

  	
  New Vanguard

  
	
  Golden Sound
  Corporation

  	
   

  	
  New Vista

  
	
  Golden Tide Corporation

  	
   

  	
  New Circassia

  
	
  Katong Investments Ltd.

  	
   

  	
  Front Breaker

  
	
  Langkawi Shipping Ltd.

  	
   

  	
  Front Birch

  
	
  Patrio Shipping Ltd.

  	
   

  	
  Front Hunter

  
	
  Rakis Maritime S.A.

  	
   

  	
  Front Fighter

  
	
  Sea Ace Corporation

  	
   

  	
  Front Ace

  
	
  Sibu Shipping Ltd.

  	
   

  	
  Front Maple

  
	
  Southwest Tankers Inc

  	
   

  	
  Front Sunda

  
	
  West Tankers Inc.

  	
   

  	
  Front Comor

  
	
  Puerto Reinosa Shipping
  Co S.A.

  	
   

  	
  Front Lillo

  
	
  Aspinall Ptd Ltd.

  	
   

  	
  Front Viewer

  
	
  Blizana Pte Ltd.

  	
   

  	
  Front Rider

  
	
  Bolzano Pte Ltd.

  	
   

  	
  Mindanao

  
	
  Cirebon Shipping Pte
  Ltd.

  	
   

  	
  Front Vanadis

  
	
  Fox Maritime Pte Ltd.

  	
   

  	
  Front Sabang

  
	
  Front Dua Pte Ltd.

  	
   

  	
  Front Duchess

  
	
  Front Empat Pte Ltd.

  	
   

  	
  Front Highness

  
	
  Front Enam Pte Ltd.

  	
   

  	
  Front Lord

  
	
  Front Lapan Pte Ltd.

  	
   

  	
  Front Climber

  
	
  Front Lima Pte Ltd.

  	
   

  	
  Front Lady

  
	
  Front Tiga Pte Ltd.

  	
   

  	
  Front Duke

  
	
  Front Tujuh Pte Ltd.

  	
   

  	
  Front Emperor

  
	
  Front Sembilan Ptd Ltd.

  	
   

  	
  Front Leader

  
	
  Rettie Pte Ltd.

  	
   

  	
  Front Striver

  
	
  Transcorp Pte Ltd.

  	
   

  	
  Front Guider

  
	
  Edinburgh Navigation
  S.A.

  	
   

  	
  Edinburgh

  
	
  Oscilla Shipping
  Limited

  	
   

  	
  Oscilla

  
	
  Ariake Transport Corp.

  	
   

  	
  Ariake

  
	
  Hitatchi Hull # 4983
  Corp.

  	
   

  	
  HakataExhibit 10.7

 

ADMINISTRATIVE
SERVICES AGREEMENT

 

by and among

 

SHIP FINANCE
INTERNATIONAL LIMITED,

 

THE VESSEL
OWNING SUBSIDIARIES NAMED HEREIN,

 

and

 

FRONTLINE
MANAGEMENT (BERMUDA) LTD.

 

 

ADMINISTRATIVE SERVICES AGREEMENT

 

THIS ADMINISTRATIVE
SERVICES AGREEMENT (“Agreement”) is made as of the 1st day of
January, 2004 by and among (i)  Ship Finance International Limited, an
exempted Bermuda company (the “Company”), (ii) each of the vessel owning
subsidiaries identified on Schedule I attached hereto and any Substitute Owners
that execute counterpart signature pages pursuant to Section 10(b) (each an
“Owner” and collectively, the “Owners”) and (iii) Frontline Management
(Bermuda) Ltd., an exempted Bermuda company (“Frontline Management”).

 

W I T N E S S E T
H:

 

WHEREAS, pursuant
to that certain Fleet Purchase Agreement (the “Fleet Purchase Agreement”) dated
as of December 11, 2003 between the Company and Frontline Ltd, an exempted
Bermuda company (“Frontline”), Frontline has agreed to sell to the Company, and
the Company has agreed to purchase, directly or indirectly through the purchase
of intermediate holding companies, from Frontline, all of the issued and
outstanding shares of capital stock of each of the Owners, on the terms and
subject to the conditions set forth therein;

 

WHEREAS, the Company and
the Owners (collectively, the “Service Recipients” and each a “Service
Recipient”) desire to receive, and Frontline Management wishes to provide,
certain non-vessel administrative, treasury, financial, control, cash
management and other support services (collectively, “Administrative Support
Services” or “Services”) as more particularly described herein;

 

WHEREAS, the
Company, each Owner and Frontline Management now desire to set forth in this
Agreement the terms of their business arrangements with respect to the
Administrative Support Services provided by Frontline Management to the Company
and each Owner;

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which the parties hereby
acknowledge, the parties hereto agree as follows:

 

1.     Administrative Support Services.

 

(a)   Frontline Management shall provide to each
Service Recipient such Administrative Support Services as may from time to
time, to the extent applicable to such Service Recipient, be required or
requested by the Service Recipient.  For
these purposes and to the extent applicable to one or more Service Recipients,
the term “Administrative Support Services” as used herein shall include:

 

(i)            maintenance
of all such books and records of things done and transactions performed on
behalf of the relevant Service Recipient as may be required or

 

 

requested
by such Service Recipient from time to time, including liaising with the
Service Recipient’s accountants, lawyers and other professionals;

 

(ii)           assistance
in complying with the requirements of all applicable securities laws, including
the United States Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, and other relevant securities laws and in
complying with relevant tax laws and preparation of tax returns, where
required;

 

(iii)          provision
of accounting services, maintenance of each Service Recipient’s general ledger,
reconciliation of each Service Recipient’s bank accounts, preparation of each
Service Recipient’s periodic financial statements, including those required by
governmental and regulatory or self-regulatory agencies in the United States
and the jurisdiction in which each Service Recipient is organized (together,
“Governmental Compliance”), collection and provision of information for
purposes of Governmental Compliance, and provision of related data processing
services;

 

(iv)          assistance
in obtaining such non-vessel related insurance, if any, as each Service
Recipient determines to procure;

 

(v)           provision
of payroll, treasury, bookkeeping and cash management services;

 

(vi)          maintenance
of bank accounts and processing of payments to vendors and service providers;

 

(vii)         provision
of corporate administration and related services;

 

(viii)        provision
of administrative services related to financing and indebtedness of the Service
Recipients;

 

(ix)           development
and monitoring of internal audit controls, disclosure controls and information
technology;

 

(x)            assistance
in the preparation of all financial statements for each Service Recipient;

 

(xi)           furnishing
any reports, reconciliations or financial information as may from time to time
requested by a Service Recipient; and

 

(xii)          provision
of such other services as each Service Recipient may request and Frontline
Management may agree to provide from time to time.

 

(b)   In consideration for providing the
Administrative Support Services to each Service Recipient, each Service Recipient
shall pay an annual fee (the “Fee”) of $20,000 prorated (including force
majeure under Section 11) for periods less than a year, each such payment to be

 

2

 

made in advance on the
first business day of each year.  If
this Agreement is terminated on a day that is not the last day of a year, a
refund shall be made of the portion of the Fee paid in advance but not
earned.  In addition to the Fee, each
Service Recipient shall reimburse Frontline Management at cost for reasonable
out of pocket costs and expenses of third parties incurred on behalf of such
Service Recipient, including legal fees, independent auditors, printers,
mailing costs, depositories, registrars, transfer agents, insurance, proxy solicitors,
filing fees, self-regulatory agencies, listing fees, stock exchange maintenance
fees, directors’ fees as set by the relevant Service Recipient, and the like;
provided, however, that nothing in this Section 1(b) shall obligate Frontline
Management to advance such costs and expenses on behalf of such Service
Recipient, and Frontline Management may direct third parties to bill such
Service Recipient directly.

 

(c)   Frontline Management shall provide the
services of such officers and other staff with suitable skills and experience
as reasonably may be necessary in order to properly perform the Administrative
Support Services referred to herein;

 

(d)   Frontline Management and its employees and
agents shall have access to all records and books of each Service Recipient
wherever located and whenever reasonably necessary or convenient to perform its
obligations hereunder.

 

2.     Use of Office Space and Facilities of
Frontline Management.

 

(a)   During the term of this Agreement, Frontline
Management shall, at its own expense, provide all office accommodation, office
equipment, office stationery and office staff as required to provide the
Administrative Support Services in an efficient and economic manner.  Frontline Management agrees to provide each
Service Recipient with office accommodation at its office at Par-la-Ville
Place, 14 Par-la-Ville Road, Hamilton, Bermuda with the understanding that an
allocable portion of the rent and any and all expenses incidental to the office
accommodation including, but not limited to telephone, water and electricity,
will be for the account of each Service Recipient, and will be payable by each
Service Recipient to Frontline Management directly, said expenses to be
determined by mutual agreement of the parties hereto.

 

(b)   While occupying the office accommodation
under this Agreement, each Service Recipient will have access to certain
facilities of Frontline Management, including Frontline Management’s computer
and telephone service, server, internet connection, postage meter, facsimile
and copying facilities at no extra charge.

 

3.     Legal Services.

 

(a)   Frontline Management shall make Legal
Services available to each Service Recipient.

 

(b)   As used in this Section 3, “Legal Services”
means providing the services of Frontline Management’s in-house counsel to
offer legal assistance and advice to each Service Recipient in connection with
any aspect of its respective business. 
If for any reason Frontline Management’s in-house legal staff, in its sole
discretion, determines that it is not capable of responding properly to the
request for legal assistance or advice, it shall, with each Service Recipient’s
consent, retain for and on behalf of each Service Recipient outside lawyers
whom it

 

3

 

believes can respond
properly and any costs, fees and charges of such outside lawyers shall be paid
by each Service Recipient.

 

(c)   In the event of a conflict of interest
between any Service Recipient and Frontline Management, Frontline Management
may decline to provide Legal Services to such Service Recipient with respect to
such event.

 

4.     Services Limited to Administrative
Support Services, Use of Office Space and Facilities and Legal Services.  Services provided by Frontline Management to
the Service Recipients under this Agreement are limited to those described in
this Agreement.

 

5.     Standard of Performance.

 

(a)           Frontline Management shall provide
the Administrative Support Services to each Service Recipient in accordance
with sound commercial practices.

 

(b)           In the exercise of its duties
hereunder, Frontline Management shall act fully in accordance with the
policies, guidelines and instructions from time to time communicated to it by
each Service Recipient and serve each Service Recipient faithfully and
diligently, at all times maintaining confidentiality in respect of business
secrets.

 

6.     No Partnership/Joint Venture.  This Agreement shall not create a
partnership, joint venture, association or other agency relationship between
Frontline Management and any Service Recipient.  Frontline Management shall not have authority to conclude any
binding obligations on behalf of any Service Recipient.

 

7.     Indemnification.

 

(a)           Each Service Recipient hereby agrees
to indemnify and hold harmless Frontline Management and its directors,
officers, shareholders and employees (together “Frontline Management
Indemnitees”) from and against any and all claims, courses of action,
liabilities, damages, costs, charges, fees, expenses, suits, judgments and
losses of any nature (together, “Damages”) against or incurred by such
Frontline Management Indemnitees arising from or relating to of the performance
of the Administrative Support Services under this Agreement exclusively; provided,
however that a Frontline Management Indemnitee shall not be indemnified
for any Damages resulting from or attributable to its own gross negligence,
fraud or willful misconduct.

 

(b)           Frontline Management hereby agrees to
indemnify and hold harmless each Service Recipient and its directors, officers,
shareholders and employees (together, “Service Recipient Indemnitees”) from and
against any and all Damages against or incurred by such Service Recipient
Indemnitees arising from or relating to Frontline Management’s gross
negligence, fraud or willful misconduct.

 

8.     Term.

 

(a)           This Agreement shall be effective (i)
with respect to the Company, on the

 

4

 

date hereof (the “Effective Date”) and (ii)
with respect to each Owner on the date of its acquisition by the Company under
the Fleet Purchase Agreement and shall continue in effect until terminated as
provided in this Section 8; provided, however, that this
Agreement may not be terminated by any party without cause prior to the earlier
of (i) the second anniversary of the Effective Date or (ii) that date of the
completion of one or more transactions that result in at least 20% of the then
outstanding common stock of the Company being listed or quoted for public
trading on the Oslo Stock Exchange, the New York Stock Exchange, the American
Stock Exchange, the Nasdaq National Market System or other United States
national securities exchange.

 

(b)           Subject to the restrictions set forth
in Section 8(a), this Agreement may be terminated with respect to any Service
Recipient (the “Terminating Service Recipient”) for any reason without
cause by the Terminating Service Recipient or by Frontline Management upon the
giving of one hundred eighty (180) days’ prior written notice to the other
parties or upon mutual written consent; provided, however, that
this Agreement shall remain in full force and effect with respect to each
Service Recipient that is not a Terminating Service Recipient.

 

(c)           This Agreement may be terminated by
Frontline Management with respect to any Service Recipient by giving notice to
such Service Recipient upon the occurrence of any of the following events:

 

(i)            there
is a material breach of a material term of this Agreement by such Service
Recipient which is not remedied within ten (10) days after notice and demand
for remedy has been given by Frontline Management to such Service Recipient; or

 

(ii)           any
proceedings are commenced in, or any order or judgment is given by, any court
for the liquidation, winding-up, bankruptcy, reorganization or reconstruction
of such Service Recipient or for the appointment of a receive or liquidator or
similar officer of such Service Recipient or of all or any part of its assets
and is not vacated or stayed within thirty (30) days.

 

(d)           This Agreement may be terminated by any
Service Recipient with respect to such Service Recipient by giving notice to
Frontline Management upon the occurrence of any of the following events:

 

5

 

(i)            there
is a material breach of a material term of this Agreement with respect to such
Service Recipient by Frontline Management which is not remedied within ten (10)
days after notice and demand for remedy has been given by such Service
Recipient to Frontline Management; or

 

(ii)           any
proceedings are commenced in, or any order or judgment is given by, any court
for the liquidation, winding-up, bankruptcy, reorganization or reconstruction
of Frontline Management or for the appointment of a receive or liquidator or
similar officer of Frontline Management or of all or any part of its assets and
is not vacated or stayed within thirty (30) days.

 

(e)           Any termination of the Agreement
shall be without prejudice to the rights of any party hereunder with respect to
periods prior to such termination.

 

(f)            If this Agreement is terminated with
respect to any Service Recipient prior to December 31 of any year, Frontline
Management shall reimburse a prorated amount of the Fee paid by such Service
Recipient for such year based on the number of days during the year for which
this Agreement was in effect with respect to the Service Recipient.

 

9.     Modification.  This Agreement may be altered, modified or
amended only with the prior written consent of each party hereto.  No act or omission shall constitute a waiver
of any term or condition of this Agreement unless specified in writing, and a
waiver of any term or condition of this Agreement shall not constitute a waiver
of any other term or condition or of such term or condition on any other
occasion.

 

10.   Assignment; Delegation; Joinder.

 

(a)           This Agreement may not be assigned by
any party in whole or in part without the prior written consent of the other
parties; provided, however, that Frontline Management may subcontract or
delegate its obligations hereunder; provided further, however, that Frontline
Management shall remain responsible for its performance under this Agreement
notwithstanding any such subcontracting or delegation.

 

(b)           Each of the parties hereto
acknowledges that the Fleet Purchase Agreement provides for the purchase by the
Company of all of the issued and outstanding shares of capital stock of one or
more vessel-owning entities owned by Frontline (each, a “Substitute Owner”) in
place of one or more of the Vessel Owning Subsidiaries (as defined in the Fleet
Purchase Agreement) set forth on Schedule 3.19 to the Fleet Purchase Agreement
in certain circumstances.  In the event
that the Company acquires any such Substitute Owner, the Company agrees that it
shall cause such Substitute Owner (if it owns a vessel directly) or the
subsidiary of such Substitute Owner that owns such vessel directly (if such
Substitute Owner does not own its vessel directly) to become an Owner hereunder
by executing a counterpart signature page to this Agreement, in the form
attached hereto, immediately after the closing under the Fleet Purchase
Agreement of the acquisition of such Substitute Owner.  The parties hereto agree that such
Substitute Owner or such Substitute Owner’s subsidiary, as the case may be,
shall be deemed to be a party for all purposes under this Agreement.  The parties hereto further agree that the
Owner for which such Substitute Owner or such Substitute Owner’s subsidiary, as
the case may be, was

 

6

 

substituted shall no longer be deemed to be a party
hereto for any purpose under this Agreement.

 

11.   Force Majeure

 

(a)           No party shall be liable to the other
for loss or damage resulting from delay or failure to perform this Agreement,
or any contract hereunder, either in whole or in part, when any such delay or
failure shall be due to causes beyond its control or is not occasioned by its
fault or negligence, including, but not limited to, civil war, insurrections,
strikes, riots, fires, floods, explosions, earthquakes, serious accidents, or
any act of government, governmental priorities, allocations, regulations or
orders affecting materials, facilities, acts of God or failure of
transportation, epidemics, quarantine restrictions or labor trouble causing
cessation, slowdown or interruption of work.

 

(b)           In the event that a situation gives
rise to force majeure which prevents Frontline Management from performing under
this Agreement, the parties agree that Frontline Management may in good faith
obtain substitute performance; provided, however, if such situation continues
for a period longer than three (3) months, then any Service Recipient shall be
entitled to terminate this Agreement by giving one (1) month prior notice in
writing to Frontline Management.

 

12.   Entire Agreement.  This Agreement constitutes the entire
agreement of the parties hereto relating to the matters contained herein,
superseding all prior contracts or agreements, whether oral or written,
relating to the matters contained herein.

 

13.   Governing Law.  This Agreement
shall be governed by and construed in accordance with the laws of the State of
New York without regard to its conflicts or choice of laws provisions. Any
legal action or proceeding in connection with this Agreement or the performance
hereof may be brought in the state and federal courts located in the Borough of
Manhattan, City, County and State of New York, and the parties hereby
irrevocably submit to the non-exclusive jurisdiction of such courts for the
purpose of any such action or proceeding.

 

14.   Notices.  Unless otherwise
provided herein, any notice, request, consent, instruction or other document to
be given hereunder by any party to another party shall be in writing and will
be deemed given (a) when received if delivered personally or by courier;
or (b) on the date receipt is acknowledged if delivered by certified mail,
postage prepaid, return receipt requested or (c) on the day of
transmission if sent by facsimile transmission and receipt thereof is
confirmed, as follows:

 

(a)           if
to a Service Recipient, addressed to:

 

Ship Finance
International Limited

Par-La-Ville Place

14 Par-La-Ville
Road

Hamilton, Bermuda
HM 08

Attention:  Finance Department

Facsimile: +1
(441) 295-3494

 

7

 

(b)           if
to Frontline Management, addressed to:

 

Frontline
Management Ltd.

Par-La-Ville Place

14 Par-La-Ville
Road

Hamilton, Bermuda
HM 08

Attention:  Finance Department

Facsimile: +1
(441) 295-3494

 

or to such other place
and with such other copies as any party may designate as to itself by written
notice to the others in accordance with this Section 14.

 

15.   Severability.  If any provision of this Agreement or the
application thereof to any Person or circumstance shall be held invalid or
unenforceable to any extent, the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by law.

 

16.   Counterparts.  This Agreement may be executed in
counterparts with the same effect as if all signatory parties had signed the
same document. All counterparts shall be construed together and shall
constitute one and the same instrument.

 

17.   U.S. Currency.  All sums and amounts payable to or to be
payable pursuant to the provisions of this Agreement shall be payable in coin
or currency of the United States of America that, at the time of payment, is
legal tender for the payment of public and private debts in the United States
of America.

 

8

 

IN WITNESS WHEREOF, this
Agreement has been executed and delivered by the undersigned on the day and
year first above written by their respective officers or agents thereunto duly
authorized.

 

 

	
   

  	
  SHIP FINANCE
  INTERNATIONAL LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANITE SHIPPING
  COMPANY LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN CURRENT
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BONFIELD
  SHIPPING LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOURWAYS MARINE
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

9

 

	
   

  	
  FRONT ARDENNE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT BRABANT
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT FALCON
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT GLORY
  SHIPPING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT PRIDE
  SHIPPING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

10

 

	
   

  	
  FRONT SAGA INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT SERENADE
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT SPLENDOUR
  SHIPPING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT STRATUS
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN BAYSHORE
  SHIPPING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

11

 

	
   

  	
  GOLDEN ESTUARY
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN FJORD
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN SEAWAY
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN SOUND
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN TIDE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

12

 

	
   

  	
  KATONG
  INVESTMENTS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LANGKAWI
  SHIPPING LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PATRIO SHIPPING
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RAKIS MARITIME
  S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SEA ACE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

13

 

	
   

  	
  SIBU SHIPPING
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST
  TANKERS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WEST TANKERS
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PUERTO REINOSA
  SHIPPING CO S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASPINALL PTD
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

14

 

	
   

  	
  BLIZANA PTE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOLZANO PTE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CIREBON SHIPPING
  PTE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOX MARITIME PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT DUA PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

15

 

	
   

  	
  FRONT EMPAT PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT ENAM PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT LAPAN PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT LIMA PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT TIGA PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

16

 

	
   

  	
  FRONT TUJUH PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONT SEMBILAN
  PTD LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RETTIE PTE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSCORP PTE
  LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDINBURGH NAVIGATION
  S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

17

 

	
   

  	
  ARIAKE TRANSPORT
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HITATCHI HULL #
  4983 CORP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  OSCILLA SHIPPING
  LIMITED.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRONTLINE
  MANAGEMENT (BERMUDA) LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

18

 

Counterpart Signature Page for
Substitute Owners pursuant to Section 10(b)

 

Pursuant to
Section 10(b) hereof, the undersigned hereby executes and delivers this
counterpart signature page and becomes an Owner as of the date set forth below.

 

 

	
   

  	
  [NAME OF SUBSTITUTE
  OWNER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
						

 

19

 

SCHEDULE I

OWNERS 

 

Owner

Granite Shipping
Co. Ltd.

Golden Current
Limited

Bonfield Shipping
Ltd.

Fourways Marine
Limited

Front Ardenne Inc.

Front Brabant Inc.

Front Falcon Inc

Front Glory
Shipping Inc.

Front Pride
Shipping Inc.

Front Saga Inc

Front Serenade
Inc.

Front Splendour
Shipping Inc.

Front Stratus Inc.

Golden Bayshore
Shipping Corporation

Golden Estuary
Corporation

Golden Fjord
Corporation

Golden Seaway
Corporation

Golden Sound
Corporation

Golden Tide
Corporation

Katong Investments
Ltd.

Langkawi Shipping
Ltd.

Patrio Shipping
Ltd.

Rakis Maritime
S.A.

Sea Ace
Corporation

Sibu Shipping Ltd.

Southwest Tankers
Inc

West Tankers Inc.

Puerto Reinosa
Shipping Co S.A.

Aspinall Ptd Ltd.

Blizana Pte Ltd.

Bolzano Pte Ltd.

Cirebon Shipping
Pte Ltd.

Fox Maritime Pte
Ltd.

Front Dua Pte Ltd.

Front Empat Pte
Ltd.

Front Enam Pte
Ltd.

Front Lapan Pte
Ltd.

Front Lima Pte
Ltd.

Front Tiga Pte
Ltd.

Front Tujuh Pte
Ltd.

Front Sembilan Ptd
Ltd.

Rettie Pte Ltd.

Transcorp Pte Ltd.

Edinburgh
Navigation S.A.

Oscilla Shipping
Limited

Ariake Transport
Corp.

Hitatchi Hull #
4983 Corp.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}]]