Document:

Exhibit 10.3

Date 3 October 2011

GAS-FIVE
LTD.

GAS-SIX LTD.
as joint and several Borrowers

– and –

THE
BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1
as Lenders

– and –

NORDEA
BANK FINLAND PLC, LONDON BRANCH

ABN AMRO BANK N.V.

CITIBANK INTERNATIONAL PLC, GREECE BRANCH
as Joint Lead Arrangers

– and –

THE
BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 2
as Swap Banks

– and –

NORDEA
BANK FINLAND PLC, LONDON BRANCH
as Agent

and Security Trustee

	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 LOAN AGREEMENT

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 

relating to

a US$277,000,000 facility to finance the construction and acquisition of

two 155,000 cbm LNG vessels currently under construction at

Samsung Heavy Industries., Co. Ltd. with hull numbers 2016 and 2017

Watson,
Farley & Williams

London

INDEX

	
  

 	
  

 	
  

 	
  

 
	
 Clause

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 INTERPRETATION

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 2

 	
 FACILITY

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 3

 	
 POSITION OF
 THE LENDERS AND SWAP BANKS

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 4

 	
 DRAWDOWN

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 5

 	
 INTEREST

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 6

 	
 INTEREST
 PERIODS

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
 DEFAULT
 INTEREST

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 
	
 8

 	
 REPAYMENT
 AND PREPAYMENT

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
 CONDITIONS
 PRECEDENT/SUBSEQUENT

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
 10

 	
 REPRESENTATIONS
 AND WARRANTIES

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
 GENERAL
 UNDERTAKINGS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 
	
 12

 	
 CORPORATE
 UNDERTAKINGS

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 13

 	
 INSURANCE

 	
  

 	
 35

 
	
  

 	
  

 	
  

 	
  

 
	
 14

 	
 SHIP
 COVENANTS

 	
  

 	
 38

 
	
  

 	
  

 	
  

 	
  

 
	
 15

 	
 SECURITY
 COVER

 	
  

 	
 42

 
	
  

 	
  

 	
  

 	
  

 
	
 16

 	
 PAYMENTS AND
 CALCULATIONS

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 
	
 17

 	
 APPLICATION
 OF RECEIPTS

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 
	
 18

 	
 APPLICATION
 OF EARNINGS

 	
  

 	
 45

 
	
  

 	
  

 	
  

 	
  

 
	
 19

 	
 EVENTS OF
 DEFAULT

 	
  

 	
 45

 
	
  

 	
  

 	
  

 	
  

 
	
 20

 	
 FEES AND
 EXPENSES

 	
  

 	
 50

 
	
  

 	
  

 	
  

 	
  

 
	
 21

 	
 INDEMNITIES

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
 22

 	
 NO SET-OFF
 OR TAX DEDUCTION

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 23

 	
 ILLEGALITY,
 ETC

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 24

 	
 INCREASED
 COSTS

 	
  

 	
 54

 
	
  

 	
  

 	
  

 	
  

 
	
 25

 	
 SET-OFF

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 
	
 26

 	
 TRANSFERS
 AND CHANGES IN LENDING OFFICES

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
 27

 	
 VARIATIONS
 AND WAIVERS

 	
  

 	
 59

 

	
  

 	
  

 	
  

 	
  

 
	
 28

 	
 NOTICES

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 
	
 29

 	
 SUPPLEMENTAL

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
 30

 	
 JOINT AND
 SEVERAL LIABILITY OF THE BORROWERS

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
 31

 	
 LAW AND
 JURISDICTION

 	
  

 	
 64

 
	
  

 	
  

 	
  

 	
  

 
	
 SCHEDULE 1
 LENDERS AND COMMITMENTS

 	
  

 	
 65

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 2
 SWAP BANKS

 	
  

 	
 66

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 3
 DRAWDOWN NOTICE

 	
  

 	
 67

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 4
 CONDITION PRECEDENT DOCUMENTS

 	
  

 	
 68

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 5
 TRANSFER CERTIFICATE

 	
  

 	
 72

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 6
 DESIGNATION NOTICE

 	
  

 	
 76

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 7
 MANDATORY COST FORMULA

 	
  

 	
 77

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 8
 FORM OF COMPLIANCE CERTIFICATE

 	
  

 	
 79

 
	
  

 	
  

 	
  

 
	
 EXECUTION
 PAGE

 	
  

 	
 81

 

	
  

 	
  

 
	
 THIS AGREEMENT
 is made on 3 October 2011 

 
	
  

 
	
 BETWEEN 

 
	
  

 
	
 (1)

 	
 GAS-FIVE LTD.
 and GAS-SIX
 LTD., each an exempted company incorporated under the laws of Bermuda
 whose registered office is at Clarendon House, 2 Church Street, Hamilton
 HM11, Bermuda, as joint and several borrowers (together the “Borrowers”,
 each a “Borrower”);

 
	
  

 	
  

 
	
 (2)

 	
 THE BANKS AND
 FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders;

 
	
  

 	
  

 
	
 (3)

 	
 NORDEA BANK FINLAND
 PLC, LONDON BRANCH, ABN AMRO BANK N.V. and CITIBANK
 INTERNATIONAL PLC, GREECE BRANCH as Joint Lead Arrangers;

 
	
  

 	
  

 
	
 (4)

 	
 THE BANKS AND
 FINANCIAL INSTITUTIONS listed in Schedule 2, as Swap Banks;

 
	
  

 	
  

 
	
 (5)

 	
 NORDEA BANK FINLAND
 PLC, LONDON BRANCH, as Agent; and

 
	
  

 	
  

 
	
 (6)

 	
 NORDEA BANK FINLAND
 PLC, LONDON BRANCH, as Security Trustee. 

 
	
  

 	
  

 
	
 BACKGROUND

 
	
  

 
	
 (A)

 	
 The Lenders have agreed to make available to the Borrowers a facility
 of up to $277,000,000 for the purpose of part financing the purchase price of
 two 155,000 cbm LNG vessels which are to be constructed by the Builder for,
 and purchased by, the relevant Borrower and having the Builder’s hull numbers
 2016 and 2017 respectively.

 
	
  

 	
  

 
	
 (B)

 	
 The Swap Banks may enter into interest rate and currency swap
 transactions with the Borrowers from time to time to hedge the Borrowers’
 exposure under this Agreement to interest rate and currency fluctuations.

 
	
  

 	
  

 
	
 (C)

 	
 The Lenders and the Swap Banks have agreed to share in the security
 to be granted to the Security Trustee pursuant to this Agreement.

 
	
  

 	
  

 
	
 IT IS AGREED
 as follows:

 
	
  

 
	
 1

 	
 INTERPRETATION

 
	
  

 	
  

 
	
 1.1.

 	
 Definitions.
 Subject to Clause 1.5, in this Agreement:

 
	
  

 	
  

 
	
  

 	
 “Account Security Deed” means, in relation to each Earnings
 Account, a deed creating security in respect of that Earnings Account in the
 Agreed Form;

 
	
  

 	
  

 
	
  

 	
 “Advance” means the principal amount of each borrowing by the
 Borrowers under this Agreement;

 
	
  

 	
  

 
	
  

 	
 “Affected Lender” has the meaning given in Clause 5.7;

 
	
  

 	
  

 
	
  

 	
 “Affected Party” has the meaning given in the relevant Master
 Agreement;

 
	
  

 	
  

 
	
  

 	
 “Agency and Trust Deed” means the agency and trust deed
 executed or to be executed between the same parties as this Agreement in the
 Agreed Form;

 
	
  

 	
  

 
	
  

 	
 “Agent” means Nordea Bank Finland Plc, London Branch, acting
 in such capacity through its office at 8th Floor, City Place House, 55
 Basinghall Street, London EC2V 5NB, or any successor of it appointed under
 clause 5 of the Agency and Trust Deed;

 
	
  

 	
  

 
	
  

 	
 “Agreed Form” means in relation to any document, that
 document in the form approved in writing by the Agent (acting on the
 instructions of all the Lenders) and agreed with the

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Borrowers or as otherwise approved in accordance with any other
 approval procedure specified in any relevant provisions of any Finance
 Document;

 
	
  

 	
  

 
	
  

 	
 “Approved Managers” means, for each Ship:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 in relation to the commercial management, GasLog or any of its wholly
 owned subsidiaries; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in relation to the technical management, Ceres LNG, 

 
	
  

 	
  

 	
  

 
	
  

 	
 or, in each case,
 any other company which the Agent may, with the authorisation of the Majority
 Lenders, approve from time to time as the technical or commercial manager of
 that Ship (such authorisation and approval not to be unreasonably withheld);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Approved Shipbroker” means Fearnleys A.S., Poten &
 Partners Inc., Simpson Spence & Young Limited, R.S. Platou Shipbrokers
 A.S., H. Clarkson & Co. Ltd., Braemar Seascape Ltd. and Arrow Sale &
 Purchase (UK) Ltd. or such other independent sale and purchase shipbroker
 which the Agent has approved or selected (with the authorisation of the
 Majority Lenders);

 
	
  

 	
  

 
	
  

 	
 “Availability Period” means the period commencing on the date
 of this Agreement and ending on:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 17 December 2013 for Tranche A and 17 February 2014 for Tranche B or
 such later date as the Agent may, with the authorisation of the Lenders,
 agree with the Borrowers in the event that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 arbitration proceedings have commenced pursuant to the Shipbuilding
 Contract for the Ship to which the relevant Tranche relates; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 there is a delay in the delivery of the Ship to which the relevant
 Tranche relates under the Shipbuilding Contract for that Ship and the
 Charterer has for the purposes of the Charter of that Ship consented in
 writing to such delay; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 if earlier, the date on which the Total Commitments are fully
 borrowed, canceled or terminated;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Borrower 1” means GAS-five Ltd., an exempted company
 incorporated under the laws of Bermuda whose registered office is at
 Clarendon House, 2 Church Street, Hamilton HM11, Bermuda;

 
	
  

 	
  

 
	
  

 	
 “Borrower 2” means GAS-six Ltd., an exempted company
 incorporated under the laws of Bermuda whose registered office is at
 Clarendon House, 2 Church Street, Hamilton HM11, Bermuda;

 
	
  

 	
  

 
	
  

 	
 “Break Costs” means the amount (if any) by which:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 the interest which a Lender should have received for the period from
 the date of receipt of all or any part of its participation in the Loan to
 the last day of the current Interest Period in respect of that Loan, had the
 principal amount received been paid on the last day of that Interest Period

 
	
  

 	
  

 	
  

 
	
  

 	
 exceeds

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the amount which that Lender would be able to obtain by placing an
 amount equal to the principal amount received by it on deposit with a leading
 bank in the London Interbank Market for a period starting on the Business Day
 following receipt or recovery and ending on the last day of the current
 Interest Period.

 

2

	
  

 	
  

 	
  

 
	
  

 	
 “Builder” means Samsung Heavy Industries Co., Ltd., a
 corporation incorporated in the Republic of Korea whose registered office is
 at 34th Fl., Samsung Insurance Seocho Tower 1321-15, Seocho-Dong, Seocho-Gu,
 Seoul, Korea 137-857;

 
	
  

 	
  

 
	
  

 	
 “Business Day” means a day on which banks are open in London,
 Monaco, Piraeus and, for the purposes of the Delivery Date, Bermuda and, in
 respect of a day on which a payment is required to be made under a Finance
 Document, also in New York City;

 
	
  

 	
  

 
	
  

 	
 “Ceres LNG” means Ceres LNG Services Ltd., an exempted
 company incorporated under the laws of Bermuda whose registered office is at
 Clarendon House, 2 Church Street, Hamilton HM11, Bermuda;

 
	
  

 	
  

 
	
  

 	
 “Change of Control” means, in relation to GasLog, if any
 person or persons acting in concert other than (i) Counter-Guarantor 2 or its
 associates (acting through the Holding Company), (ii) Counter-Guarantor 1 or
 its associates (acting through the Holding Company) or (iii) a Passive
 Financial Institution:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 acquires legally and/or beneficially, and either directly or
 indirectly, in excess of the issued share capital of GasLog (or such other
 public vehicle owning the Borrowers) held by the Holding Company; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 has the right or the ability to control, either directly or
 indirectly, the affairs or composition of the majority of the board of
 directors (or equivalent) of GasLog (or such other public vehicle owning the
 Borrowers), 

 
	
  

 	
  

 	
  

 
	
  

 	
 in either ease, without the prior written consent of the Agent
 (acting with the authorisation of the Majority Lenders);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Charter” means, in relation to a Ship, the time charter
 dated 9 May 2011 and entered into between the relevant Borrower and the
 Charterer pursuant to the Master Charterparty Agreement and approved by the
 Lenders;

 
	
  

 	
  

 
	
  

 	
 “Charter Assignment” means, in relation to a Ship, an
 assignment of the Charter or Replacement Charter for that Ship and any
 guarantee in relation to that Charter or Replacement Charter executed or to
 be executed by the relevant Borrower in favour of the Security Trustee in the
 Agreed Form;

 
	
  

 	
  

 
	
  

 	
 “Charterer” means Methane Services Ltd., a company
 incorporated in England and Wales with its registered office at 100 Thames
 Valley Park Drive, Reading, Berkshire, RG6 1PT, United Kingdom, which as at
 the date of this Agreement is a subsidiary of BG Group plc;

 
	
  

 	
  

 
	
  

 	
 “Commitment” means, in relation to a Lender, the amount set
 opposite its name in Schedule 1, or, as the case may require, the amount
 specified in the relevant Transfer Certificate, as that amount may be
 reduced, cancelled or terminated in accordance with this Agreement (and “Total
 Commitments” means the aggregate of the Commitments of all the
 Lenders);

 
	
  

 	
  

 
	
  

 	
 “Confirmation” and “Early Termination Date”, in
 relation to any continuing Designated Transaction, have the meanings given in
 the relevant Master Agreement;

 
	
  

 	
  

 
	
  

 	
 “Contractual Currency” has the meaning given in Clause 21.4;

 
	
  

 	
  

 
	
  

 	
 “Contribution” means, in relation to a Lender, the part
 of the Loan which is owing to that Lender;

 
	
  

 	
  

 
	
  

 	
 “Counter-Guarantee” means, in relation to a
 Counter-Guarantor, the counter-guarantee in the Agreed Form executed or to be
 executed by that Counter-Guarantor in favour of the Security Trustee in
 respect of the obligations and liabilities of GasLog and GasLog Carriers
 under the Guarantees to which they are party and, in the plural, means both
 such Counter-Guarantees;

 

3

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “Counter-Guarantor 1” means the company identified in the
 letter referred to in Schedule 4, Part A, Paragraph 11(b);

 
	
  

 	
  

 
	
  

 	
 “Counter-Guarantor 2” means the company identified in the
 letter referred to in Schedule 4, Part A, Paragraph 11(c);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Counter-Guarantors” means Counter-Guarantor 1 and Counter-Guarantor
 2 and, in the singular, means either of them;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Creditor Party” means the Agent, the Security Trustee,
 any Swap Bank, any Joint Lead Arranger or any Lender, whether as at the date
 of this Agreement or at any later time;

 
	
  

 	
  

 
	
  

 	
 “Deed of Covenant” means, in relation to a Ship, the first
 priority deed of covenant collateral to the Mortgage on that Ship executed or
 to be executed by the Borrower which owns that Ship in favour of the Security
 Trustee in the Agreed Form and, in the plural, means all such Deeds of
 Covenant;

 
	
  

 	
  

 
	
  

 	
 “Delivery Date” means, in relation to a Ship, the date
 on which that Ship is actually delivered to, and accepted by, the Borrower
 which is to acquire that Ship under the Shipbuilding Contract relating to it;

 
	
  

 	
  

 
	
  

 	
 “Designated Transaction” means a Transaction which fulfils the
 following requirements:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 it is entered into by a Borrower pursuant to a Master Agreement with
 a Swap Bank which, at the time the Transaction is entered into, is also a
 Lender;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 its purpose is the hedging of that Borrower’s exposure under this
 Agreement to fluctuations in LIBOR or currency fluctuations respectively
 arising from the funding of the Loan (or any part thereof) or the operation
 of the Ship owned by it respectively for a period expiring no later than the
 final Repayment Date; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 it is designated by that Borrower, by delivery by that Borrower
 to the Agent of a notice of designation in the form set out in Schedule 6, as
 a Designated Transaction for the purposes of the Finance Documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Dollars” and “$” means the lawful
 currency for the time being of the United States of America;

 
	
  

 	
  

 
	
  

 	
 “Drawdown Date” means, in relation to an Advance, the
 date requested by the Borrowers for the Advance to be made, or (as the context
 requires) the date on which the Advance is actually made;

 
	
  

 	
  

 
	
  

 	
 “Drawdown Notice” means a notice in the form set out in
 Schedule 3 (or in any other form which the Agent approves or reasonably
 requires);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Earnings” means, in relation to a Ship, all moneys
 whatsoever which are now, or later become, payable (actually or contingently)
 to the Borrower owning that Ship or the Security Trustee and which arise out
 of the use or operation of that Ship, including (but not limited to):

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 except to the extent that they fall within paragraph (b);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 all freight, hire and passage moneys;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 compensation payable to the Borrower owning that Ship or the Security
 Trustee in the event of requisition of that Ship for hire;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 remuneration for salvage and towage services;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 demurrage
 and detention moneys;

 

4

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 damages for breach (or payments for variation or termination) of any
 charterparty or other contract for the employment of that Ship; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vi)

 	
 all moneys which are at any time payable under any Insurances in
 respect of loss of hire; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 if and whenever that Ship is employed on terms whereby any moneys
 falling within paragraphs (a)(i) to (vi) are pooled or shared with any other
 person, that proportion of the net receipts of the relevant pooling or
 sharing arrangement which is attributable to that Ship;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “Earnings Account” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 in relation to Ship 1, an account in the name of the Borrower owning
 Ship 1 with the Agent in London with account number 0045675701, or any other
 account (with that or another office of the Agent or with a bank or financial
 institution other than the Agent) which is designated by the Agent as the
 Earnings Account in relation to Ship 1 for the purposes of this Agreement; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 an account in the name of the Borrower owning Ship 2 with Citibank
 N.A., London Branch in London designated “GAS-six Ltd.” with account number
 0013008649, or any other account (with that or another office of Citibank
 NA., London Branch or with a bank or financial institution other than
 Citibank N.A., London Branch) which is designated by the Agent as the
 Earnings Account in relation to Ship 2 for the purposes of this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “Environmental Claim” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 any claim by any governmental, judicial or regulatory authority which
 arises out of an Environmental Incident or an alleged Environmental Incident
 or which relates to any Environmental Law; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any claim by any other person which relates to an Environmental
 Incident or to an alleged Environmental Incident, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 and “claim” means a claim for damages,
 compensation, fines, penalties or any other payment of any kind whether or
 not similar to the foregoing; an order or direction to take, or not to take,
 certain action or to desist from or suspend certain action; and any form of
 enforcement or regulatory action, including the arrest or attachment of any
 asset;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “Environmental Incident” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 any release of Environmentally Sensitive Material from a Ship; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any incident in which Environmentally Sensitive Material is released
 from a vessel other than a Ship and which involves a collision between a Ship
 and such other vessel or some other incident of navigation or operation, in
 either case, in connection with which a Ship is actually or potentially
 liable to be arrested, attached, detained or injuncted and/or a Ship and/or
 any Borrower and/or any operator or manager of a Ship is at fault or
 allegedly at fault or otherwise liable to any legal or administrative action;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any other incident in which Environmentally Sensitive Material is
 released otherwise than from a Ship and in connection with which a Ship is
 actually or potentially liable to be arrested and/or where any Borrower and/or
 any operator or manager of a Ship is at fault or allegedly at fault or
 otherwise liable to any legal or administrative action;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “Environmental Law” means any law relating to pollution or
 protection of the environment, to the carriage of Environmentally Sensitive
 Material or to actual or threatened releases of Environmentally Sensitive
 Material;

 

5

	
  

 	
  

 	
  

 
	
  

 	
 “Environmentally Sensitive Material” means oil, oil products
 and any other substance (including any chemical, gas or other hazardous or
 noxious substance) which is (or is capable of being or becoming) polluting,
 toxic or hazardous;

 
	
  

 	
  

 
	
  

 	
 “Event of Default” means any of the events or circumstances
 described in Clause 19.1;

 
	
  

 	
  

 
	
  

 	
 “Fair Market Value” means the market value of a Ship, as
 determined in accordance with Clause 15.3;

 
	
  

 	
  

 
	
  

 	
 “Finance Documents” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the Agency and Trust Deed; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the Guarantees;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 the Counter-Guarantees; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 the Mortgages;

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 the Deeds of Covenant;

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 the Account Security Deeds;

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 the General Assignments;

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the Charter Assignments;

 
	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 the Share Pledges; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 any other document (whether creating a Security Interest or not)
 which is executed at any time by any Borrower or any other person as security
 for, or to establish any form of subordination or priorities arrangement in
 relation to, any amount payable to the Lenders and/or the Swap Banks under
 this Agreement or any of the other documents referred to in this definition;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Financial Indebtedness” means, in relation to a person (the “debtor”),
 a liability of the debtor:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 for principal, interest or any other sum payable in respect of any
 moneys borrowed or raised by the debtor;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 under any loan stock, bond, note or other security issued by the
 debtor;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 under any acceptance credit, guarantee or letter of credit facility
 or dematerialized equivalent made available to the debtor;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 under a financial lease, a deferred purchase consideration arrangement
 or any other agreement having the commercial effect of a borrowing or raising
 of money by the debtor;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 under any foreign exchange transaction, any interest or currency swap
 or any other kind of derivative transaction entered into by the debtor or, if
 the agreement under which any such transaction is entered into requires
 netting of mutual liabilities, the liability of the debtor for the net
 amount; or

 

6

	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 under a guarantee, indemnity or similar obligation entered into by
 the debtor in respect of a liability of another person which would fall
 within paragraphs (a) to (e) if the references to the debtor referred to the
 other person;

 
	
  

 	
  

 	
  

 
	
  

 	
 “GasLog” means GasLog Ltd., an exempted company
 incorporated under the laws of Bermuda whose registered office is at
 Clarendon House, 2 Church Street, Hamilton HM11, Bermuda;

 
	
  

 	
  

 	
  

 
	
  

 	
 “GasLog Carriers” means GasLog Carriers Ltd., an exempted
 company incorporated under the laws of Bermuda whose registered office is at
 Clarendon House, 2 Church Street, Hamilton HM11, Bermuda;

 
	
  

 	
  

 
	
  

 	
 “General Assignment” means, in relation to a Ship, the first
 priority general assignment of the Earnings, the Insurances, any Requisition
 Compensation and the Management Agreement executed or to be executed by the
 Borrower which owns that Ship in favour of the Security Trustee in the Agreed
 Form and, in the plural, means all such General Assignments;

 
	
  

 	
  

 
	
  

 	
 “Guarantee” means, in relation to GasLog or GasLog
 Carriers, the guarantee in the Agreed Form executed or to be executed by that
 Guarantor in favour of the Security Trustee and, in the plural, means both
 such Guarantees;

 
	
  

 	
  

 
	
  

 	
 “Guarantors” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 prior to the date of a Qualified IPO, together, the
 Counter-Guarantors, GasLog and GasLog Carriers; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 following the date of a Qualified IPO, together, GasLog and GasLog
 Carriers, and in the singular means any one of them;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Holding Company” means the company identified in the
 letter referred to in Schedule 4, Part A, Paragraph 11(a);

 
	
  

 	
  

 	
  

 
	
  

 	
 “IFRS” means international accounting standards
 within the meaning of the IAS Regulations 1606/2002 to the extent applicable
 to the relevant financial statements;

 
	
  

 	
  

 
	
  

 	
 “Insurances” means, in relation to a Ship:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 all policies and contracts of insurance, including entries of the
 Ship in any protection and indemnity or war risks association, which are
 effected in respect of the Ship, its Earnings or otherwise in relation to it
 whether before, on or after the date of this Agreement; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 all rights and other assets relating to, or derived from, any of the
 foregoing, including any rights to a return of a premium and any rights in
 respect of any claim whether or not the relevant policy, contract of
 insurance or entry has expired on or before the date of this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 “ISM Code” means the International Safety
 Management Code (including the guidelines on its implementation), adopted by
 the International Maritime Organisation as the same may be amended or
 supplemented 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 adopted by the International Maritime Organisation,
 as the same may be amended or supplemented from time to time;

 
	
  

 	
  

 
	
  

 	
 “ISSC” means a valid and current International Ship Security
 Certificate issued under the ISPS Code;

 

7

	
  

 	
  

 	
  

 
	
  

 	
 “Interest Period” means a period determined in accordance
 with Clause 6;

 
	
  

 	
  

 
	
  

 	
 “Joint Lead Arrangers” means each of Nordea Bank Finland plc,
 London Branch acting through its office at 8th Floor, City Place House, 55
 Basinghall Street, London EX2V 5NB, ABN AMRO Bank N.V. acting through its
 office at Coolsingel 93, 3012 AE Rotterdam, The Netherlands and Citibank
 International Plc, Greece Branch acting through its office at 47/49 Akti
 Miaouli, Piraeus, Greece;

 
	
  

 	
  

 
	
  

 	
 “Lender” means, subject to Clause 26,6, a bank or
 financial institution listed in Part 1 of Schedule 1 and acting through its
 branch indicated in Schedule 1 (or through another branch notified to the
 Agent under Clause 26.14) or its transferee, successor or assign;

 
	
  

 	
  

 
	
  

 	
 “LIBOR” means, for an Interest Period:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 the Screen Rate; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 (if no Screen Rate is available for that Interest Period) the
 arithmetic mean of the rates (rounded upwards to four decimal places) as
 supplied to the Agent at its request quoted by the Reference Banks to leading
 banks in the London Interbank Market, 

 
	
  

 	
  

 	
  

 
	
  

 	
 at or about 11 a.m. (London time) on
 the Quotation Date for the offering of deposits in Dollars for a period
 comparable to that Interest Period and, if any such rate is below zero, LIBOR
 will he deemed to be zero;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Loan” means the principal amount for the time
 being outstanding under this Agreement;

 
	
  

 	
  

 
	
  

 	
 “Major Casualty” means, in relation to a Ship, any
 casualty to the Ship in respect of which the claim or the aggregate of the
 claims against all insurers, before adjustment for any relevant franchise or
 deductible, exceeds $1,000,000 or the equivalent in any other currency;

 
	
  

 	
  

 
	
  

 	
 “Majority Lenders” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 before an Advance has been made, Lenders whose Commitments total 67
 per cent. of the Total Commitments; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 after an Advance has been made, Lenders whose Contributions total 67
 per cent. of the Loan;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Management Agreement” means, in relation to a Ship, the
 management agreement made or to be made between the Borrower owning or to own
 that Ship and the technical Approved Manager of that Ship;

 
	
  

 	
  

 
	
  

 	
 “Mandatory Cost” means the percentage rate per annum
 calculated by the Agent in accordance with Schedule 7;

 
	
  

 	
  

 
	
  

 	
 “Margin” means 2.25 per cent. per annum;

 
	
  

 	
  

 
	
  

 	
 “Master Agreement” means each master agreement (on the 2002
 Master Agreement form) in an agreed form to be made between a Borrower and a
 Swap Bank and includes all Designated Transactions from time to time entered
 into and Confirmations from time to time exchanged under such master
 agreement;

 
	
  

 	
  

 
	
  

 	
 “Master Charterparty Agreement” means the master charterparty
 agreement dated 9 May 2011 and entered into between the Borrowers and the
 Charterer and approved by the Lenders;

 
	
  

 	
  

 
	
  

 	
 “Maturity Date” means the earlier of (i) the date
 falling 6 years after the first Drawdown Date and (ii) 30 July 2019;

 

8

	
  

 	
  

 	
  

 
	
  

 	
 “Mortgage” means, in relation to each Ship, the
 first priority Bermuda ship mortgage executed or to be executed by the
 Borrower which owns that Ship in favour of the Security Trustee in the Agreed
 Form and, in the plural, means all such Mortgages;

 
	
  

 	
  

 
	
  

 	
 “Negotiation Period” has the meaning given in Clause 5.10;

 
	
  

 	
  

 
	
  

 	
 “Notifying Lender” has the meaning given in Clause 23.1 or
 Clause 24.1 as the context requires;

 
	
  

 	
  

 
	
  

 	
 “Passive Financial Institution” means a bank or financial
 institution or a wholly owned direct or indirect subsidiary of a bank or
 financial institution which:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 does not have the right or the ability to control, either directly or
 indirectly, the affairs or composition of the majority of the board of
 directors (or equivalent) of GasLog (or such other public vehicle owning the
 Borrowers) nor the right or ability to otherwise control the affairs and
 policies of GasLog (or such other public vehicle owning the Borrowers); and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 is not acting in concert with any other direct or indirect legal or
 beneficial shareholder of GasLog (or such other public vehicle owning the
 Borrowers), 

 
	
  

 	
  

 	
  

 
	
  

 	
 provided that the Counter-Guarantors have control of the board of
 directors of GasLog.

 
	
  

 	
  

 	
  

 
	
  

 	
 “Payment Currency” has the meaning given in Clause 21.4;

 
	
  

 	
  

 
	
  

 	
 “Permitted Security Interests” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 Security Interests created by the Finance Documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 liens for unpaid master’s and crew’s wages in accordance with usual
 maritime practice;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 liens for salvage;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 liens arising by operation of law for not more than 2 months’ prepaid
 hire under any charter in relation to a Ship not prohibited by this
 Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 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, repair or maintenance of a Ship, provided
 such liens do not secure amounts more than 30 days overdue (unless the
 overdue amount is being contested by the relevant Borrower in good faith by
 appropriate steps) and subject, in the case of liens for repair or
 maintenance, to Clause 14.12(g);

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 any Security Interest created in favour of a plaintiff or defendant
 in any proceedings or arbitration as security for costs and expenses while a
 Borrower is actively prosecuting or defending such proceedings or arbitration
 in good faith; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 Security Interests arising by operation of law in respect of taxes
 which are not overdue for payment or in respect of taxes being contested in
 good faith by appropriate steps and in respect of which appropriate reserves
 have been made;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Pertinent Document” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 any Finance Document;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any policy or contract of insurance contemplated by or referred to in
 any provision of this Agreement or another Finance Document;

 

9

	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any other document contemplated by or referred to in any Finance
 Document; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 any document which has been or is at any time sent by or to a
 Servicing Bank in contemplation of or in connection with any Finance Document
 or any policy, contract or document falling within paragraphs (b) or (c);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Pertinent Jurisdiction”, in relation to a company, means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 England and Wales;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the country under the laws of which the company is incorporated or
 formed;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 a country in which the company has the centre of its main interest or
 in which the company’s central management and control is or has recently been
 exercised;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 a country in which the overall net income of the company is subject
 to corporation tax, income tax or any similar tax;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 a country in which assets of the company (other than securities
 issued by, or loans to, related companies) having a substantial value are
 situated, in which the company maintains a branch or permanent place of
 business, or in which a Security Interest created by the company must or
 should be registered in order to ensure its validity or priority; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 a country the courts of which have jurisdiction to make a winding up,
 administration or similar order in relation to the company, whether as main
 or territorial or ancillary proceedings, or which would have such
 jurisdiction if their assistance were requested by the courts of a country
 referred to in paragraphs (b) or (c);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Pertinent
 Matter” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 any transaction or matter contemplated by, arising out of, or in
 connection with a Pertinent Document; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any statement relating to a Pertinent Document or to a transaction or
 matter falling within paragraph (a); 

 
	
  

 	
  

 	
  

 
	
  

 	
 and covers any such transaction, matter
 or statement, whether entered into, arising or made at any time before the
 signing of this Agreement or on or at any time after that signing;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Potential Event of Default” means an event or circumstance
 which, with the giving of any notice, the lapse of time, a determination of
 the Majority Lenders and/or the satisfaction of any other condition, would
 constitute an Event of Default;

 
	
  

 	
  

 
	
  

 	
 “Qualified IPO” means an initial public offering by GasLog of
 its common stock on NASDAQ and/or another reputable stock exchange approved
 by the Agent acting with the consent of the Lenders (such consent not to be
 unreasonably withheld or delayed), where:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 such offering has been structured in form and substance satisfactory
 to the Agent acting with the consent of the Lenders (such consent not to be
 unreasonably withheld or delayed);

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 such offering has resulted in net cash proceeds of at least
 $150,000,000 received by GasLog; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the shares of such offering have been listed on the relevant stock
 exchange;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Quotation Date” means, in relation to any Interest Period
 (or any other period for which an interest rate is to be determined under any
 provision of a Finance Document), the day on 

 

10

	
  

 	
  

 	
  

 
	
  

 	
 which quotations would ordinarily be given by leading banks in the
 London Interbank Market for deposits in the currency in relation to which
 such rate is to be determined for delivery on the first day of that Interest
 Period or other period;

 
	
  

 	
  

 
	
  

 	
 “Reference Banks” means, subject to Clause 26.16, Nordea Bank
 Finland plc, London Branch, ABN AMRO Bank N.V. and Citibank International Plc
 and any one other prime international bank from time to time selected by the
 Agent;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Relevant Person” has the meaning given in Clause 19.9;

 
	
  

 	
  

 
	
  

 	
 “Repayment Date” means a date on which a repayment is
 required to be made under Clause 8;

 
	
  

 	
  

 
	
  

 	
 “Replacement Charter” means, in relation to a Ship, any
 charter entered into between the relevant Borrower and a charterer which is
 acceptable to the Majority Lenders and on terms approved by the Lenders;

 
	
  

 	
  

 
	
  

 	
 “Requisition Compensation” includes all compensation or other
 moneys payable by reason of any act or event such as is referred to in
 paragraph (b) of the definition of “Total Loss”;

 
	
  

 	
  

 
	
  

 	
 “Screen Rate” means, in relation to any period for which an
 interest rate is to be determined under any provision of a Finance Document,
 the British Bankers’ Association Interest Settlement Rate for Dollars for the
 relevant period displayed on the appropriate page of the Telerate or Reuters
 screen. If the agreed page is replaced or service ceases to be available, the
 Agent may specify another page or service displaying the appropriate rate
 after consultation with the Borrowers and the Lenders;

 
	
  

 	
  

 
	
  

 	
 “Secured Liabilities” means all liabilities which the
 Borrowers, the Security Parties or any of them have, at the date of this
 Agreement or at any later time or times, under or in connection with any
 Finance Document or any Designated Transaction under any Master Agreement or
 any judgment relating to any Finance Document or any Designated Transaction
 under any Master Agreement; and for this purpose, there shall be disregarded
 any total or partial discharge of these liabilities, or variation of their
 terms, which is effected by, or in connection with, any bankruptcy,
 liquidation, arrangement or other procedure under the insolvency laws of any
 country;

 
	
  

 	
  

 
	
  

 	
 “Security Interest” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 a mortgage, charge (whether fixed or floating) or pledge, any
 maritime or other lien or any other security interest of any kind;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the security rights of a plaintiff under an action in rem; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any arrangement entered into by a person (A) the effect of which is
 to place another person (B) in a position which is similar, in economic
 terms, to the position in which B would have been had he held a security
 interest over an asset of A; but this paragraph (c) does not apply to a right
 of set off or combination of accounts conferred by the standard terms of
 business of a bank or financial institution;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Security Party” means the Guarantors and any other person
 (except a Creditor Party) who, as a surety, pledgor, chargor or mortgagor, as
 a party to any subordination or priorities arrangement, or in any similar
 capacity, executes a document falling within any paragraph of the definition
 of “Finance Documents”;

 
	
  

 	
  

 
	
  

 	
 “Security Period” means the period commencing on the date of
 this Agreement and ending on the date on which the Agent notifies the
 Borrowers, the Security Parties and the other Creditor Parties that:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 all amounts which have become due for payment by any Borrower or any
 Security Party under the Finance Documents and the Master Agreements have
 been paid;

 

11

	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 no amount is owing or has accrued (without yet having become due for
 payment) under any Finance Document or any Master Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 neither any Borrower nor any Security Party has any future or
 contingent liability under Clause 20, 21 or 22 or any other provision of this
 Agreement or another Finance Document or a Master Agreement; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 the Agent, the Security Trustee and the Majority Lenders do not
 consider that there is a significant risk that any payment or transaction
 under a Finance Document or a Master Agreement would be set aside, or would
 have to be reversed or adjusted, in any present or possible future bankruptcy
 of the Borrowers or a Security Party or in any present or possible future
 proceeding relating to a Finance Document or a Master Agreement or any asset
 covered (or previously covered) by a Security Interest created by a Finance
 Document;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Security Trustee” means Nordea Bank Finland Plc, London
 Branch, acting in such capacity through its office at 8th Floor, City Place
 House, 55 Basinghall Street, London EC2V 5NB, or any successor of it
 appointed under clause 5 of the Agency and Trust Deed;

 
	
  

 	
  

 
	
  

 	
 “Servicing Bank” means the Agent or the Security Trustee;

 
	
  

 	
  

 
	
  

 	
 “Shares Pledges” means, in relation to a Borrower, a deed
 creating security over that share capital of the Borrower to be granted by
 GasLog Carriers to the Security Trustee in the Agreed Form;

 
	
  

 	
  

 
	
  

 	
 “Ship” means each of Ship 1 and Ship 2 and together means
 both of them;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Ship 1” means the 155,000 cbm LNG vessel which is to be
 constructed by the Builder for, and purchased by, Borrower 1 under the
 relevant Shipbuilding Contract and having the Builder’s hull number 2016;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Ship 2” means the 155,000 cbm LNG vessel which is to be
 constructed by the Builder for, and purchased by, Borrower 2 under the
 relevant Shipbuilding Contract and having the Builder’s hull number 2017;

 
	
  

 	
  

 
	
  

 	
 “Shipbuilding Contract” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 in relation to Ship 1 the shipbuilding contract dated 30 March 2011
 and made between the Builder and Borrower 1 for the construction by the
 Builder of that Ship and its purchase by Borrower 1 as supplemented and
 amended from time to time;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in relation to Ship 2 the shipbuilding contract dated 30 March 2011
 and made between the Builder and Borrower 2 for the construction by the
 Builder of that Ship and its purchase by Borrower 2 as supplemented and
 amended from time to time,

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 and, in the plural, means all such Shipbuilding Contracts;

 
	
  

 	
  

 	
  

 
	
  

 	
 “SMC” means a safety management certificate issued in respect
 of the Ship in accordance with Rule 13 of the ISM Code;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Swap Bank” means a bank or financial institution
 listed in Schedule 2 and acting through its branch indicated in Schedule 2;

 
	
  

 	
  

 
	
  

 	
 “Swap Counterparty” means, at any relevant time and in
 relation to a continuing Designated Transaction, the Swap Bank which is a
 party to that Designated Transaction;

 
	
  

 	
  

 
	
  

 	
 “Swap Exposure” means, as at any relevant date and in
 relation to a Swap Counterparty, the amount certified by the Swap
 Counterparty to the Agent to be the aggregate net amount in Dollars which
 would be payable by a Borrower to the Swap Counterparty under (and calculated
 in accordance with) section 6(e) (Payments on Early Termination) of the
 Master 

 

12

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Agreement entered into by the Swap Counterparty with that Borrower if
 an Early Termination Date had occurred on the relevant date in relation to
 all continuing Designated Transactions entered into between that Borrower and
 the Swap Counterparty and as if the Borrower were the sole Affected Party;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Total Loss” means, in relation to a Ship:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 actual, constructive, compromised, agreed or arranged total loss of
 the Ship;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any expropriation, confiscation, requisition or acquisition of the
 Ship, whether for full consideration, a consideration less than its proper
 value, a nominal consideration or without any consideration, which is
 effected by any government or official authority or by any person or persons
 claiming to be or to represent a government or official authority (excluding
 a requisition for hire for a fixed period not exceeding 1 year without any
 right to an extension and provided that market hire is being paid for such
 requisition) unless it is within 2 months redelivered to the full control of
 the Borrower owning the Ship; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any arrest, capture, seizure, detention, destruction or abandonment
 of the Ship (including any hijacking, theft or condemnation) unless it is
 within 2 months redelivered to the full control of the Borrower owning the
 Ship;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Total Loss Date” means, in relation to a Ship:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in the case of an actual loss of the Ship, the date on which it
 occurred or, if that is unknown, the date when the Ship was last heard of;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in the case of a constructive, compromised, agreed or arranged total
 loss of the Ship, the earliest of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 the date on which a notice of abandonment is given to the insurers;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 the date of any compromise, arrangement or agreement made by or on
 behalf of the Borrower owning the Ship with the Ship’s insurers in which the
 insurers agree to treat the Ship as a total loss; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 in the case of any other type of total loss, on the date (or the most
 likely date) on which it appears to the Agent that the event constituting the
 total loss occurred;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Tranche” means each of Tranche A and Tranche B;

 
	
  

 	
  

 
	
  

 	
 “Tranche A” means an amount of up to $138,500,000 in relation to Ship
 1 to be made available by 1 Advance which shall be applied to part finance
 the final delivery installment due to be paid to the Builder under the
 Shipbuilding Contract for Ship 1;

 
	
  

 	
  

 
	
  

 	
 “Tranche B” means an amount of up to $138,500,000 in relation to Ship
 2 to be made available by 1 Advance which shall be applied to part finance
 the final delivery installment due to be paid to the Builder under the
 Shipbuilding Contract for Ship 2;

 
	
  

 	
  

 
	
  

 	
 “Transaction” has the meaning given in each Master Agreement;

 
	
  

 	
  

 
	
  

 	
 “Transfer Certificate” has the meaning given in Clause 26.2; and

 
	
  

 	
  

 
	
  

 	
 “Trust Property” has the meaning given in clause 3.1 of the Agency
 and Trust Deed. 

 
	
  

 	
  

 
	
 1.2.

 	
 Construction of
 certain terms. In this Agreement:

 
	
  

 	
  

 	
  

 
	
  

 	
 “approved” means, for the purposes of Clause 13,
 approved in writing by the Agent;

 

13

	
  

 	
  

 
	
  

 	
 “administration notice” means a notice appointing an
 administrator, a notice of intended appointment and any other notice which is
 required by law (generally or in the case concerned) to be filed with the
 court or given to a person prior to, or in connection with, the appointment
 of an administrator;

 
	
  

 	
  

 
	
  

 	
 “asset” includes every kind of property, asset,
 interest or right, including any present, future or contingent right to any
 revenues or other payment;

 
	
  

 	
  

 
	
  

 	
 “company” includes any partnership, joint venture
 and unincorporated association;

 
	
  

 	
  

 
	
  

 	
 “consent” includes an authorisation, consent,
 approval, resolution, licence, exemption, filing, registration, notarisation
 and legalisation;

 
	
  

 	
  

 
	
  

 	
 “contingent liability” means a liability which is not certain
 to arise and/or the amount of which remains unascertained;

 
	
  

 	
  

 
	
  

 	
 “document” includes a deed; also a letter or fax;

 
	
  

 	
  

 
	
  

 	
 “excess risks” means, in relation to a Ship, the
 proportion of claims for general average, salvage and salvage charges not
 recoverable under the hull and machinery policies in respect of the Ship in
 consequence of its insured value being less than the value at which the Ship
 is assessed for the purpose of such claims;

 
	
  

 	
  

 
	
  

 	
 “expense” means any kind of cost, charge or
 expense (including all legal costs, charges and expenses) and any applicable
 value added or other tax;

 
	
  

 	
  

 
	
  

 	
 “law” includes any order or decree, any form
 of delegated legislation, any treaty or international convention and any
 regulation or resolution of the Council of the European Union, the European
 Commission, the United Nations or its Security Council;

 
	
  

 	
  

 
	
  

 	
 “legal or administrative action” means any legal proceeding
 or arbitration and any administrative or regulatory action or investigation;

 
	
  

 	
  

 
	
  

 	
 “liability” includes every kind of debt or liability
 (present or future, certain or contingent), whether incurred as principal or
 surety or otherwise;

 
	
  

 	
  

 
	
  

 	
 “months” shall be construed in accordance with Clause 1.3;

 
	
  

 	
  

 
	
  

 	
 “obligatory insurances” means, in relation to a Ship, all
 insurances effected, or which the Borrower owning the Ship is obliged to
 effect, under Clause 13 or any other provision of this Agreement or another
 Finance Document;

 
	
  

 	
  

 
	
  

 	
 “parent company” has the meaning given in Clause 1.4;

 
	
  

 	
  

 
	
  

 	
 “person” includes any company; any state, political
 sub-division of a state and local or municipal authority; and any
 international organisation;

 
	
  

 	
  

 
	
  

 	
 “policy”, in relation to any insurance, includes a slip,
 cover note, certificate of entry or other document evidencing the contracts
 of insurance or its terms;

 
	
  

 	
  

 
	
  

 	
 “protection and indemnity risks” means the usual risks
 covered by a protection and indemnity association managed in London,
 including pollution risks and the proportion (if any) of any sums payable to
 any other person or persons in case of collision which are not recoverable
 under the hull and machinery policies by reason of the incorporation in them
 of Clause 6 of the International Hull Clauses (1/11/02 or 1/11/03), clause 8
 of the Institute Time Clauses (Hulls) (1/11/95) or clause 8 of the Institute
 Time Clauses (Hulls) (1/10/83) or the Institute Amended Running Down Clause
 (1/10/71) or any equivalent provision;

 

14

	
  

 	
  

 
	
  

 	
 “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;

 
	
  

 	
  

 
	
  

 	
 “subsidiary” has the meaning given in Clause 1.4;

 
	
  

 	
  

 
	
  

 	
 “tax” includes any present or future tax, duty, impost, levy
 or charge of any kind which is imposed by any state, any political
 sub-division of a state or any local or municipal authority (including any
 such imposed in connection with exchange controls), and any connected
 penalty, interest or fine; and

 
	
  

 	
  

 
	
  

 	
 “war risks” includes the risk of mines and all risks excluded
 by clause 29 of the International Hull Clauses (1/11/02 or 1/11/03), clause
 24 of the Institute Time Clauses (Hulls)(1/11/95) or clause 23 of the
 Institute Time Clauses (Hulls) (1/10/83).

 
	
  

 	
  

 
	
 1.3.

 	
 Meaning of “month”.
 A period of 1 or more “months” ends on the day in the relevant calendar month
 numerically corresponding to the day of the calendar month on which the
 period started (“the numerically corresponding day”), but:

 
	
  

 	
  

 
	
 (a)

 	
 on the Business Day following the numerically corresponding day if
 the numerically corresponding day is not a Business Day or, if there is no
 later Business Day in the same calendar month, on the Business Day preceding
 the numerically corresponding day; or

 
	
  

 	
  

 
	
 (b)

 	
 on the last Business Day in the relevant calendar month, if the
 period started on the last Business Day in a calendar month or if the last
 calendar month of the period has no numerically corresponding day;

 
	
  

 	
  

 
	
  

 	
 and “month” and “monthly” shall be construed accordingly.

 
	
  

 	
  

 
	
 1.4.

 	
 Meaning of “subsidiary”.
 A company (S) is a subsidiary of another company (P) if:

 
	
  

 	
  

 
	
 (a)

 	
 a majority of the issued shares in S (or a majority of the issued
 shares in S which carry unlimited rights to capital and income distributions)
 are directly owned by P or are indirectly attributable to P; or

 
	
  

 	
  

 
	
 (b)

 	
 P has direct or indirect control over a majority of the voting rights
 attaching to the issued shares of S; or

 
	
  

 	
  

 
	
 (c)

 	
 P has the direct or indirect power to appoint or remove a majority of
 the directors of S; or

 
	
  

 	
  

 
	
 (d)

 	
 P otherwise has the direct or indirect power to ensure that the
 affairs of S are conducted in accordance with the wishes of P;

 
	
  

 	
  

 
	
  

 	
 and any company of which S is a subsidiary is a parent company of S. 

 
	
  

 	
  

 
	
 1.5.

 	
 General
 Interpretation. In this Agreement:

 
	
  

 	
  

 
	
 (a)

 	
 references to, or to a provision of, a Finance Document or any other
 document are references to it as amended or supplemented, whether before the
 date of this Agreement or otherwise;

 
	
  

 	
  

 
	
 (b)

 	
 references to, or to a provision of, any law include any amendment,
 extension, reenactment or replacement, whether made before the date of this
 Agreement or otherwise;

 
	
  

 	
  

 
	
 (c)

 	
 words denoting the singular number shall include the plural and vice
 versa; and

 
	
  

 	
  

 
	
 (d)

 	
 Clauses 1.1 to 1.5 apply unless the contrary intention appears.

 

15

	
  

 	
  

 
	
 1.6.

 	
 Headings.
 In interpreting a Finance Document or a Master Agreement or any provision of
 a Finance Document, all clause, sub-clause and other headings in that and any
 other Finance Document or any Master Agreement shall be entirely disregarded.

 
	
  

 	
  

 
	
 2

 	
 FACILITY

 
	
  

 	
  

 
	
 2.1.

 	
 Amount of facility.
 Subject to the other provisions of this Agreement, the Lenders shall make a
 loan facility not exceeding $277,000,000 available to the Borrowers
 comprising up to $138,500,000 in respect of Tranche A and up to $138,500,000
 in respect of Tranche B.

 
	
  

 	
  

 
	
 2.2.

 	
 Lenders’ participations
 in Loan. Subject to the other provisions of this
 Agreement, each Lender shall participate in each Advance in the proportion
 which, as at the relevant Drawdown Date, its Commitment bears to the Total
 Commitments.

 
	
  

 	
  

 
	
 2.3.

 	
 Purpose of Loan.
 The Borrowers undertake with each Creditor Party to use each Advance only for
 the purpose stated in the preamble to this Agreement.

 
	
  

 	
  

 
	
 2.4.

 	
 Application of
 amounts. No Creditor Party is obliged to monitor or
 verify the application of any amount borrowed under this Agreement.

 
	
  

 	
  

 
	
 3

 	
 POSITION OF THE LENDERS AND SWAP BANKS

 
	
  

 	
  

 
	
 3.1.

 	
 Interests of
 Lenders several. The rights of the Lenders and of
 the Swap Banks under this Agreement and under the Master Agreements are
 several.

 
	
  

 	
  

 
	
 3.2.

 	
 Individual Lender’s
 right of action. Each Lender and each Swap Bank
 shall be entitled to sue for any amount which has become due and payable by
 the Borrowers to it under this Agreement or under a Master Agreement without
 joining the Agent, the Security Trustee, any other Swap Bank or any other
 Lender as additional parties in the proceedings.

 
	
  

 	
  

 
	
 3.3.

 	
 Proceedings by
 individual Lender, requiring Majority Lenders’ consent.
 Except as provided in Clause 3.2, no Lender and no Swap Bank may commence
 proceedings against any Borrower or any Security Party in connection with a
 Finance Document or a Master Agreement without the prior consent of the
 Majority Lenders.

 
	
  

 	
  

 
	
 3.4.

 	
 Obligations of
 Creditor Parties several. The obligations of the
 Creditor Parties under this Agreement and the Master Agreement to which each
 is a party are several; and a failure of the Creditor Parties to perform its
 obligations under this Agreement or under the Master Agreement to which it is
 a party shall not result in:

 
	
  

 	
  

 
	
 (a)

 	
 the obligations of the other Creditor Parties being increased; nor

 
	
  

 	
  

 
	
 (b)

 	
 any Borrower, any Security Party, or any other Creditor Party being
 discharged (in whole or in part) from its obligations under any Finance
 Document or under any Master Agreement;

 
	
  

 	
  

 
	
  

 	
 and in no circumstances shall a Creditor Party have any
 responsibility for a failure of another Creditor Party to perform its
 obligations under this Agreement or a Master Agreement.

 
	
  

 	
  

 
	
 4

 	
 DRAWDOWN

 
	
  

 	
  

 
	
 4.1.

 	
 Request for
 Advance. Subject to the following conditions, the
 Borrowers may request an Advance to be made by ensuring that the Agent
 receives a completed Drawdown Notice not later than 11.00 a.m. (London time)
 3 Business Days prior to the intended Drawdown Date.

 
	
  

 	
  

 
	
 4.2.

 	
 Availability.
 The conditions referred to in Clause 4.1 are that:

 
	
  

 	
  

 
	
 (a)

 	
 a Drawdown Date has to be a Business Day during the Availability
 Period;

 
	
  

 	
  

 
	
 (b)

 	
 there shall be no more than 1 Advance in each Tranche; and

 

16

	
  

 	
  

 
	
 (c)

 	
 the amount of the Advance under a Tranche shall not exceed the amount
 set out for that Advance in the definition of that Tranche in Clause 1.1 and
 such Advance shall be applied for the purpose set out for that Advance in the
 definition of that Tranche in Clause 1.1.

 
	
  

 	
  

 
	
 4.3.

 	
 Notification to
 Lenders of receipt of a Drawdown Notice. The Agent
 shall promptly notify the Lenders that it has received a Drawdown Notice and
 shall inform each Lender of:

 
	
  

 	
  

 
	
 (a)

 	
 the amount of the Advance and the Drawdown Date;

 
	
  

 	
  

 
	
 (b)

 	
 the amount of that Lender’s participation in the Advance; and 

 
	
  

 	
  

 
	
 (c)

 	
 the duration of the first Interest Period.

 
	
  

 	
  

 
	
 4.4.

 	
 Drawdown Notice
 irrevocable. A Drawdown Notice must be signed by an
 authorized signatory of a Borrower; and once served, a Drawdown Notice cannot
 be revoked without the prior consent of the Agent, acting with the
 authorisation of the Majority Lenders.

 
	
  

 	
  

 
	
 4.5.

 	
 Lenders to make
 available Contributions. Subject to the provisions
 of this Agreement, each Lender shall, on and with value on each Drawdown
 Date, make available to the Agent for the account of the Borrowers the amount
 due from that Lender on that Drawdown Date under Clause 2.2.

 
	
  

 	
  

 
	
 4.6.

 	
 Disbursement of
 Advance. Subject to the provisions of this
 Agreement, the Agent shall on each Drawdown Date pay to the Borrowers the
 amounts which the Agent receives from the Lenders under Clause 4.5; and that
 payment to the Borrowers shall be made:

 
	
  

 	
  

 
	
 (a)

 	
 to the account of the Builder which the Borrowers specify in the
 Drawdown Notice; and

 
	
  

 	
  

 
	
 (b)

 	
 in the like funds as the Agent received the payments from the
 Lenders.

 
	
  

 	
  

 
	
 4.7.

 	
 Disbursement of
 Advance to third party. The payment by the Agent
 under Clause 4.6 to the Builder shall constitute the making of the Advance
 and the Borrowers shall thereupon become indebted, as principal and direct
 obligor, to each Lender in an amount equal to that Lender’s
 Contribution.

 
	
  

 	
  

 
	
 5

 	
 INTEREST

 
	
  

 	
  

 
	
 5.1.

 	
 Payment of normal
 interest. Subject to the provisions of this
 Agreement, interest on each Advance in respect of each Interest Period
 applicable to it shall be paid by the Borrowers on the last day of that
 Interest Period applicable to it.

 
	
  

 	
  

 
	
 5.2.

 	
 Normal rate of
 interest. Subject to the provisions of this
 Agreement, the rate of interest on each Advance in respect of an Interest
 Period applicable to it shall be the aggregate of the Margin, the Mandatory
 Cost (if any) and LIBOR for that Interest Period.

 
	
  

 	
  

 
	
 5.3.

 	
 Payment of accrued
 interest. In the case of an Interest Period longer
 than 3 months, accrued interest shall be paid every 3 months during that
 Interest Period and on the last day of that Interest Period.

 
	
  

 	
  

 
	
 5.4.

 	
 Notification of
 Interest Periods and rates of normal interest. The
 Agent shall notify the Borrowers and each Lender of:

 
	
  

 	
  

 
	
 (a)

 	
 each rate of interest; and

 
	
  

 	
  

 
	
 (b)

 	
 the duration of each Interest Period; as soon as reasonably
 practicable after each is determined.

 
	
  

 	
  

 
	
 5.5.

 	
 Obligation of
 Reference Banks to quote. A Lender which is a
 Reference Bank shall use all reasonable efforts to supply the quotation
 required of it for the purposes of fixing a rate of interest under this
 Agreement.

 

17

	
  

 	
  

 
	
 5.6.

 	
 Absence of
 quotations by Reference Banks. If any Reference Bank
 fails to supply a quotation, the Agent shall determine the relevant LIBOR on
 the basis of the quotations supplied by the other Reference Bank or Banks;
 but if 2 or more of the Reference Banks fail to provide a quotation, the
 relevant rate of interest shall be set in accordance with the following
 provisions of this Clause 5.

 
	
  

 	
  

 
	
 5.7.

 	
 Market disruption.
 The following provisions of this Clause 5 apply if:

 
	
  

 	
  

 
	
 (a)

 	
 no Screen Rate is quoted and 2 or more of the Reference Banks do not,
 before 1.00 p.m. (London time) on the Quotation Date for an Interest Period,
 provide quotations to the Agent in order to fix LIBOR; or

 
	
  

 	
  

 
	
 (b)

 	
 at least 1 Business Day before the start of an Interest Period,
 Lender(s) having Contributions together amounting to 50 per cent. or more of
 the Loan (or, if an Advance has not been made, Commitments together amounting
 to 50 per cent. or more of the Total Commitments) notify the Agent that LIBOR
 fixed by the Agent would not accurately reflect the cost to those Lender(s)
 of funding their respective Contributions (or any part of them) during the
 Interest Period in the London Interbank Market at or about 11.00 a.m. (London
 time) on the Quotation Date for the Interest Period; or

 
	
  

 	
  

 
	
 (c)

 	
 at least 1 Business Day before the start of an Interest Period, the
 Agent is notified by a Lender (the “Affected Lender”) that for any reason it
 is unable to obtain Dollars in the London Interbank Market in order to fund
 its Contribution (or any part of it) during the Interest Period.

 
	
  

 	
  

 
	
 5.8.

 	
 Notification of
 market disruption. The Agent shall promptly notify
 the Borrowers, each of the Lenders and each of the Swap Counterparties
 stating the circumstances falling within Clause 5.7 which have caused its
 notice to be given.

 
	
  

 	
  

 
	
 5.9.

 	
 Suspension of
 drawdown. If the Agent’s notice under Clause 5.8 is
 served before an Advance is made:

 
	
  

 	
  

 
	
 (a)

 	
 in a case falling within Clauses 5.7(a) or (b), the Lenders’
 obligations to make the Advance;

 
	
  

 	
  

 
	
 (b)

 	
 in a case falling within Clause 5.7(c), the Affected Lender’s
 obligation to participate in the Advance;

shall be suspended while the
 circumstances referred to in the Agent’s notice continue.

 
	
  

 	
  

 
	
 5.10.

 	
 Negotiation of
 alternative rate of interest. If the Agent’s notice
 under Clause 5.8 is served after an Advance is made, the Borrowers, the
 Agent, the Lenders or (as the case may be) the Affected Lender and the Swap
 Counterparties shall use reasonable endeavours to agree, within the 30 days
 after the date on which the Agent serves its notice under Clause 5.8 (the
 “Negotiation Period”), an alternative interest rate or (as the case may be)
 an alternative basis for the Lenders or (as the case may be) the Affected
 Lender to fund or continue to fund their or its Contribution during the
 Interest Period concerned.

 
	
  

 	
  

 
	
 5.11.

 	
 Application of
 agreed alternative rate of interest. Any alternative
 interest rate or an alternative basis which is agreed during the Negotiation
 Period shall take effect in accordance with the terms agreed.

 
	
  

 	
  

 
	
 5.12.

 	
 Alternative rate of
 interest in absence of agreement. If an alternative
 interest rate or alternative basis is not agreed within the Negotiation
 Period, and the relevant circumstances are continuing at the end of the
 Negotiation Period, then the Agent shall, with the agreement of each Lender
 or (as the case may be) the Affected Lender, set an interest period and
 interest rate representing the cost of funding of the Lenders or (as the case
 may be) the Affected Lender in Dollars or in any available currency of their
 or its Contribution plus the Margin and the Mandatory Cost (if any); and the
 procedure provided for by this Clause 5.12 shall be repeated if the relevant
 circumstances are continuing at the end of the interest period so set by the
 Agent.

 

18

	
  

 	
  

 
	
 5.13.

 	
 Notice of
 prepayment. If the Borrowers do not agree with an
 interest rate set by the Agent under Clause 5.12, the Borrowers may give the
 Agent not less than 15 Business Days’ notice of its intention to prepay at
 the end of the interest period set by the Agent.

 
	
  

 	
  

 
	
 5.14.

 	
 Prepayment; termination
 of Commitments. A notice under Clause 5.13 shall be
 irrevocable; the Agent shall promptly notify the Lenders or (as the case may
 require) the Affected Lender of the Borrowers’ notice of intended prepayment;
 and:

 
	
  

 	
  

 
	
 (a)

 	
 on the date on which the Agent serves that notice, the Total
 Commitments or (as the case may require) the Commitment of the Affected
 Lender shall be cancelled; and

 
	
  

 	
  

 
	
 (b)

 	
 on the last Business Day of the interest period set by the Agent, the
 Borrowers shall prepay (without premium or penalty) the Loan or, as the case
 may be, the Affected Lender’s Contribution, together with accrued interest
 thereon at the applicable rate plus the Margin and the Mandatory Cost (if
 any).

 
	
  

 	
  

 
	
 5.15.

 	
 Application of
 prepayment. The provisions of Clause 8 shall apply
 in relation to the prepayment.

 
	
  

 	
  

 
	
 5.16.

 	
 Designated
 Transactions under a Master Agreement. At any time
 the Borrowers may request the Swap Banks (by advising the Agent who shall
 (after first advising the Swap Banks of the amount and the maturity of the
 intended hedge and consulting with them) then advise the Swap Banks of the
 rate as determined by the Agent and invite each Swap Bank to participate on a
 pro-rata basis in the intended hedge by entering into a Designated
 Transaction at such rate) to conclude Designated Transactions for the purpose
 of swapping their interest payment obligations and/or their currency exposure
 under this Agreement. Signature of a Master Agreement does not commit the
 Swap Bank concerned to conclude Designated Transactions, or even to offer
 terms for doing so, but does provide a contractual framework within which
 Designated Transactions may be concluded and secured, assuming that the Swap
 Bank concerned is willing to conclude any Designated Transaction at the
 relevant time and that, if that is the case, mutually acceptable terms can
 then be agreed at the relevant time.

 
	
  

 	
  

 
	
 6

 	
 INTEREST PERIODS

 
	
  

 	
  

 
	
 6.1.

 	
 Commencement of
 Interest Periods. The first Interest Period
 applicable to an Advance shall commence on the Drawdown Date and each
 subsequent Interest Period shall commence on the expiry of the preceding
 Interest Period.

 
	
  

 	
  

 
	
 6.2.

 	
 Duration of normal
 Interest Periods. Subject to Clauses 6.3 and 6.4,
 each Interest Period shall be:

 
	
  

 	
  

 
	
 (a)

 	
 1, 2, 3 or 6 months as notified by the Borrowers to the Agent not
 later than 11.00 a.m. (London time) 3 Business Days before the commencement
 of the Interest Period;

 
	
  

 	
  

 
	
 (b)

 	
 3 months, if the Borrowers fail to notify the Agent by the time
 specified in paragraph (a); or

 
	
  

 	
  

 
	
 (c)

 	
 such other period as the Agent may, with the authorisation of all the
 Lenders, agree with the Borrowers.

 
	
  

 	
  

 
	
 6.3.

 	
 Duration of
 Interest Periods for repayment instalments. In
 respect of an amount due to be repaid under Clause 8 on a particular
 Repayment Date, an Interest Period shall end on that Repayment Date.

 
	
  

 	
  

 
	
 6.4.

 	
 Non-availability of
 matching deposits for Interest Period selected. If,
 after the Borrowers have selected and the Lenders have agreed an Interest
 Period longer than 6 months, any Lender notifies the Agent by 11.00 am.
 (London time) on the third Business Day before the commencement of the
 Interest Period that it is not satisfied that deposits in Dollars for a
 period equal to the Interest Period will be available to it in the London
 Interbank Market when the Interest Period commences, the Interest Period
 shall be of 6 months.

 

19

	
  

 	
  

 	
  

 
	
 7

 	
 DEFAULT INTEREST

 
	
  

 	
  

 	
  

 
	
 7.1.

 	
 Payment of default
 interest on overdue amounts. The Borrowers shall pay
 interest in accordance with the following provisions of this Clause 7 on any
 amount payable by the Borrowers under any Finance Document which the Agent,
 the Security Trustee or the other designated payee does not receive on or
 before the relevant date, that is:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 the date on which the Finance Documents provide that such amount is due
 for payment; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 if a Finance Document provides that such amount is payable on demand,
 the date on which the demand is served; or

 
	
  

 	
  

 
	
 (c)

 	
 if such amount has become immediately due and payable under Clause
 19.4, the date on which it became immediately due and payable.

 
	
  

 	
  

 	
  

 
	
 7.2.

 	
 Default rate of
 interest. Interest shall accrue on an overdue amount
 from (and including) the relevant date until the date of actual payment (as
 well after as before judgment) at the rate per annum determined by the Agent
 to be 2 per cent. above:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 in the case of an overdue amount of principal, the higher of the
 rates set out at Clauses 7.3(a) and (b); or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 in the case of any other overdue amount, the rate set out at Clause
 7.3(b).

 
	
  

 	
  

 	
  

 
	
 7.3.

 	
 Calculation of default
 rate of interest. The rates referred to in Clause
 7.2 are:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 the rate applicable to the overdue principal amount immediately prior
 to the relevant date (but only for any unexpired part of any then current
 Interest Period);

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 the Margin plus the Mandatory Cost (if any) plus, in respect of
 successive periods of any duration (including at call) up to 3 months which
 the Agent may select from time to time:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 LIBOR; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 if the Agent (after consultation with the Reference Banks) determines
 that Dollar deposits for any such period are not being made available to any
 Reference Bank by leading banks in the London Interbank Market in the
 ordinary course of business, a rate from time to time determined by the Agent
 by reference to the cost of funds to the Reference Banks from such other
 sources as the Agent (after consultation with the Reference Banks) may from
 time to time determine.

 
	
  

 	
  

 	
  

 
	
 7.4.

 	
 Notification of
 interest periods and default rates. The Agent shall
 promptly notify the Lenders and the Borrowers of each interest rate
 determined by the Agent under Clause 7.3 and of each period selected by the
 Agent for the purposes of paragraph (b) of that Clause; but this shall not be
 taken to imply that the Borrowers is liable to pay such interest only with
 effect from the date of the Agent’s notification.

 
	
  

 	
  

 	
  

 
	
 7.5.

 	
 Payment of accrued
 default interest. Subject to the other provisions of
 this Agreement, any interest due under this Clause shall be paid on the last
 day of the period by reference to which it was determined; and the payment
 shall be made to the Agent for the account of the Creditor Party to which the
 overdue amount is due.

 
	
  

 	
  

 	
  

 
	
 7.6.

 	
 Compounding of
 default interest. Any such interest which is not
 paid at the end of the period by reference to which it was determined shall
 thereupon be compounded.

 
	
  

 	
  

 	
  

 
	
 7.7.

 	
 Application to
 Master Agreements. For the avoidance of doubt, this
 Clause 7 does not apply to any amount payable under a Master Agreement in
 respect of any continuing Designated Transaction as to which section 9(h)(i)
 (Default Interest; Other Amounts) of that Master Agreement shall apply.

 

20

	
  

 	
  

 
	
 8

 	
 REPAYMENT AND PREPAYMENT

 
	
  

 	
  

 
	
 8.1.

 	
 Amount of repayment
 instalments. The Borrowers shall repay the Loan as
 follows:

 
	
  

 	
  

 
	
 (a)

 	
 Tranche A shall be repaid by consecutive quarterly instalments each
 equal to one sixty eighth (1/68) of the amount of Tranche A drawndown and by
 a balloon instalment equal to the balance of Tranche A at that time; and

 
	
  

 	
  

 
	
 (b)

 	
 Tranche B shall be repaid by consecutive quarterly instalments each
 equal to one sixty eighth (1/68) of the amount of Tranche B drawndown and by
 a balloon instalment equal to the balance of Tranche B at that time.

 
	
  

 	
  

 
	
 8.2.

 	
 Repayment Dates.

 
	
  

 	
  

 
	
 (a)

 	
 The first quarterly instalment for each Tranche shall be repaid on
 the date falling 3 months after the Delivery Date of the Ship relating to
 that Tranche.

 
	
  

 	
  

 
	
 (b)

 	
 The final instalment, and the balloon instalment, for both Tranche A
 and Tranche B shall be repaid on the Maturity Date.

 
	
  

 	
  

 
	
 8.3.

 	
 Maturity Date. On
 the Maturity Date, the Borrowers shall additionally pay to the Agent for the
 account of the Creditor Parties all other sums then accrued or owing under
 any Finance Document.

 
	
  

 	
  

 
	
 8.4.

 	
 Voluntary
 prepayment. Subject to the following conditions, the
 Borrowers may prepay the whole or any part of the Loan on the last day of an
 Interest Period.

 
	
  

 	
  

 
	
 8.5.

 	
 Conditions for
 voluntary prepayment. The conditions referred to in
 Clause 8.4 are that:

 
	
  

 	
  

 
	
 (a)

 	
 a partial prepayment shall be $3,000,000 or an integral multiple of
 $1,000,000;

 
	
  

 	
  

 
	
 (b)

 	
 the Agent has received from the Borrowers at least 5 Business Days’
 prior written notice specifying the amount to be prepaid and the date on
 which the prepayment is to be made;

 
	
  

 	
  

 
	
 (c)

 	
 the Borrowers have provided evidence satisfactory to the Agent that
 any consent required by any Borrower or any Security Party in connection with
 the prepayment has been obtained and remains in force, and that any
 requirement relevant to this Agreement which affects the Borrowers or any
 Security Party has been complied with; and

 
	
  

 	
  

 
	
 (d)

 	
 the Borrowers have complied with Clause 8.12 on or prior to the date
 of prepayment.

 
	
  

 	
  

 
	
 8.6.

 	
 Effect of notice of
 prepayment. A prepayment notice may not be withdrawn
 or amended without the consent of the Agent, given with the authorisation of
 the Majority Lenders, and the amount specified in the prepayment notice shall
 become due and payable by the Borrowers on the date for prepayment specified
 in the prepayment notice.

 
	
  

 	
  

 
	
 8.7.

 	
 Notification of
 notice of prepayment. The Agent shall notify the
 Lenders promptly upon receiving a prepayment notice, and shall provide any
 Lender which so requests with a copy of any document delivered by the
 Borrowers under Clause 8.5(c).

 
	
  

 	
  

 
	
 8.8.

 	
 Mandatory
 prepayment on sale or Total Loss. The Borrower shall
 be obliged to repay the relevant Tranche if the Ship is sold or becomes a
 Total Loss:

 
	
  

 	
  

 
	
 (a)

 	
 in the case of a sale, on the date on which the sale is completed by
 delivery of the Ship to the buyer; or

 
	
  

 	
  

 
	
 (b)

 	
 in the case of a Total Loss, on the earlier of the date falling 180
 days after the Total Loss Date and the date of receipt by the Security
 Trustee of the proceeds of insurance relating to such Total Loss, 

 

21

	
  

 	
  

 	
  

 
	
  

 	
 and in this Clause 8.8 “relevant Tranche” means the Tranche
 relating to the Ship which is the subject of the relevant circumstances
 described in Clause 8.8.

 
	
  

 	
  

 
	
 8.9.

 	
 Mandatory
 prepayment on Change of Control. Following the date
 of a Qualified IPO if there is a Change of Control, the Borrowers shall be
 obliged to prepay all of the Loan no later than 60 days following the Change
 of Control unless such Change of Control is, before the end of such period
 approved by the Agent acting with the consent of the Majority Lenders.

 
	
  

 	
  

 
	
 8.10.

 	
 Amounts payable on
 prepayment. A prepayment shall be made together with
 accrued interest (and any other amount payable under Clauses 20 or 21 or
 otherwise) in respect of the amount prepaid and, if the prepayment is not
 made on the last day of an Interest Period together with any sums payable
 under Clause 21.1(b) but without premium or penalty.

 
	
  

 	
  

 
	
 8.11.

 	
 Application of
 partial prepayment. Each partial prepayment shall be
 applied pro rata against each Tranche; and for each Tranche so applied,
 against the repayment instalments specified in Clause 8.1 on a pro-rata
 basis.

 
	
  

 	
  

 
	
 8.12.

 	
 No reborrowing. No
 amount prepaid may be reborrowed and, for the avoidance of doubt, any amount
 prepaid shall permanently cancel a corresponding amount of the Total
 Commitments.

 
	
  

 	
  

 
	
 8.13.

 	
 Unwinding of
 Designated Transactions. On or prior to any
 repayment or prepayment of the Loan under this Clause 8 or any other
 provision of this Agreement, the Borrowers shall wholly or partially reverse,
 offset, unwind or otherwise terminate one or more of the continuing
 Designated Transactions so that the notional principal amount of the
 continuing Designated Transactions thereafter remaining does not and will not
 in the future (taking into account the scheduled amortisation) exceed the
 amount of the Loan as reducing from time to time thereafter pursuant to
 Clause 8.1.

 
	
  

 	
  

 	
  

 
	
 9 

 	
 CONDITIONS PRECEDENT/SUBSEQUENT 

 
	
  

 	
  

 
	
 9.1.

 	
 Documents, fees and
 no default. Each Lender’s obligation to contribute
 to an Advance is subject to the following conditions precedent:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 that, on or before the service of the first Drawdown Notice, the
 Agent receives the documents described in Part A of Schedule 4 in form and
 substance satisfactory to the Agent and its lawyers;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 that on or before the Drawdown Date for an Advance, the Agent
 receives in respect of that Advance the documents described in Part B of
 Schedule 4 is in a form and substance satisfactory to the Agents and its
 lawyers;

 
	
  

 	
  

 
	
 (c)

 	
 that, on or before the service of the first Drawdown Notice, the
 Agent has received the arrangement fee and structuring fee referred to in
 Clause 20.1, all accrued commitment fee payable pursuant to Clause 20.1 and
 the annual agency fee referred to in Clause 20.1 and has received payment of
 the expenses referred to in Clause 20.2;

 
	
  

 	
  

 
	
 (d)

 	
 that both at the date of each Drawdown Notice and at each Drawdown
 Date:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 no Event of Default or Potential Event of Default has occurred and is
 continuing or would result from the borrowing of the Advance;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the representations and warranties in Clause 10 and those of any
 Borrower or any Security Party which are set out in the other Finance
 Documents would be true and not misleading if repeated on each of those dates
 with reference to the circumstances then existing; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 none of the circumstances contemplated by Clause 5.7 has occurred and
 is continuing; and

 

22

	
  

 	
  

 
	
 (e)

 	
 that, if the ratio set out in Clause 15.1 were applied immediately
 following the making of the Advance, the Borrowers would not be obliged to
 provide additional security or prepay part of the Loan under that Clause;

 
	
  

 	
  

 
	
 (f)

 	
 that the Agent has received, and found to be acceptable to it, any
 further opinions, consents, agreements and documents in connection with the
 Finance Documents which the Agent may, with the authorisation of the Majority
 Lenders, request by notice to the Borrowers prior to the Drawdown Date.

 
	
  

 	
  

 
	
 9.2.

 	
 Waiver of
 conditions precedent. If the Majority Lenders, at
 their discretion, permit an Advance to be borrowed before certain of the
 conditions referred to in Clause 9.1 are satisfied, the Borrowers shall
 ensure that those conditions are satisfied within 5 Business Days after the
 Delivery Date (or such longer period as the Agent may, with the authorisation
 of the Majority Lenders, specify).

 
	
  

 	
  

 
	
 9.3.

 	
 Condition
 subsequent - Charter. Each Borrower will send to the
 Agent as soon as possible, but in no event later than 2 Business Days after
 the Delivery Date of the Ship owned by that Borrower, documentary evidence
 that that Ship has been unconditionally delivered by that Borrower to, and
 accepted by, the Charterer under the Charter for that Ship.

 
	
  

 	
  

 
	
 10 

 	
 REPRESENTATIONS AND WARRANTIES 

 
	
  

 	
  

 
	
 10.1.

 	
 General.
 Each Borrower represents and warrants to each Creditor Party as follows.

 
	
  

 	
  

 
	
 10.2.

 	
 Status.
 Each Borrower is duly incorporated and validly existing and in good standing
 under the laws of Bermuda.

 
	
  

 	
  

 
	
 10.3.

 	
 Share capital and
 ownership. Each Borrower has an authorised share
 capital of 12,000 registered shares of $1.00 each, all of which shares have
 been issued in registered form, and the legal title and beneficial ownership
 of all those shares is held, free of any Security Interest or other claim, by
 GasLog Carriers.

 
	
  

 	
  

 
	
 10.4.

 	
 Corporate power.
 Each Borrower has the corporate capacity, and has taken all corporate action
 and obtained all consents necessary for it:

 
	
  

 	
  

 
	
 (a)

 	
 to purchase and pay for the Ship to be owned by it under the relevant
 Shipbuilding Contract and register the Ship on Bermudan flag;

 
	
  

 	
  

 
	
 (b)

 	
 to execute the Finance Documents to which that Borrower is a party
 and the Master Agreements; and

 
	
  

 	
  

 
	
 (c)

 	
 to borrow under this Agreement, to enter into Designated Transactions
 under the Master Agreements and to make all the payments contemplated by, and
 to comply with, those Finance Documents to which that Borrower is a party and
 the Master Agreements.

 
	
  

 	
  

 
	
 10.5.

 	
 Consents in force.
 All the consents referred to in Clause 10.4 remain in force and nothing has
 occurred which makes any of them liable to revocation.

 
	
  

 	
  

 
	
 10.6.

 	
 Legal validity;
 effective Security Interests. The Finance Documents
 to which each Borrower is a party and the Master Agreements, do now or, as
 the case may be, will, upon execution and delivery (and, where applicable,
 registration as provided for in the Finance Documents):

 
	
  

 	
  

 
	
 (a)

 	
 constitute that Borrower’s legal, valid and binding obligations enforceable
 against that Borrower in accordance with their respective terms; and

 
	
  

 	
  

 
	
 (b)

 	
 create legal, valid and binding Security Interests enforceable in
 accordance with their respective terms over all the assets to which they, by
 their terms, relate;

 
	
  

 	
  

 
	
  

 	
 subject to any relevant insolvency laws affecting creditors’ rights
 generally.

 

23

	
  

 	
  

 
	
 10.7.

 	
 No third party
 Security Interests. Without limiting the generality
 of Clause 10.6, at the time of the execution and delivery of each Finance
 Document:

 
	
  

 	
  

 
	
 (a)

 	
 each Borrower which is a party to that Finance Document will have the
 right to create all the Security Interests which that Finance Document
 purports to create; and

 
	
  

 	
  

 
	
 (b)

 	
 no third party will have any Security Interest (except for Permitted
 Security Interests) or any other interest, right or claim over, in or in
 relation to any asset to which any such Security Interest, by its terms,
 relates.

 
	
  

 	
  

 
	
 10.8.

 	
 No conflicts. The
 execution by each Borrower of each Finance Document and each Master Agreement
 to which it is a party, and the borrowing by that Borrower of the Loan, and
 its compliance with each Finance Document and each Master Agreement to which
 it is a party will not involve or lead to a contravention of:

 
	
  

 	
  

 
	
 (a)

 	
 any law or regulation; or

 
	
  

 	
  

 
	
 (b)

 	
 the constitutional documents of that Borrower; or

 
	
  

 	
  

 
	
 (c)

 	
 any contractual or other obligation or restriction which is binding
 on that Borrower or any of its assets.

 
	
  

 	
  

 
	
 10.9.

 	
 No withholding
 taxes. All payments which each Borrower is liable to
 make under the Finance Documents or any Master Agreement to which it is a
 party may be made without deduction or withholding for or on account of any
 tax payable under any law of any Pertinent Jurisdiction.

 
	
  

 	
  

 
	
 10.10.

 	
 No default. No
 Event of Default or Potential Event of Default has occurred and is
 continuing.

 
	
  

 	
  

 
	
 10.11.

 	
 Information. All
 information which has been provided in writing by or on behalf of the
 Borrowers or any Master Agreement or any Security Party to any Creditor Party
 in connection with any Finance Document satisfied the requirements of Clause
 11.6; all audited and unaudited accounts which have been so provided
 satisfied the requirements of Clause 11.7; and there has been no material
 adverse change in the financial position or state of affairs of any Borrower
 or any Guarantor from that disclosed in the latest of those accounts.

 
	
  

 	
  

 
	
 10.12.

 	
 No litigation. No
 legal or administrative action involving any Borrower (including acting
 relating to any alleged or actual breach of the ISM Code or the ISPS Code)
 has been commenced or taken or, to the Borrowers’ knowledge, is likely to be
 commenced or taken which, in either case, would be likely to have a material
 adverse effect on any Borrower’s financial position or profitability.

 
	
  

 	
  

 
	
 10.13.

 	
 Validity and
 completeness of Shipbuilding Contracts. Each
 Shipbuilding Contract constitutes valid, binding and enforceable obligations
 of the parties thereto respectively in accordance with its terms; and:

 
	
  

 	
  

 
	
 (a)

 	
 the copy of each Shipbuilding Contract delivered to the Agent before
 the date of this Agreement is a true and complete copy; and

 
	
  

 	
  

 
	
 (b)

 	
 no amendments or additions to either Shipbuilding Contract have been
 agreed nor has any party to either Shipbuilding Contract waived any of their
 respective rights under those agreements.

 
	
  

 	
  

 
	
 10.14.

 	
 No rebates etc. There
 is no agreement or understanding to allow or pay any rebate, premium,
 commission, discount or other benefit or payment (howsoever described) to
 either Borrower, the Builder or a third party in connection with the purchase
 by the relevant Borrower of the Ship to be owned by it, other than as
 disclosed to the Lenders in writing on or prior to the date of this
 Agreement.

 

24

	
  

 	
  

 
	
 10.15.

 	
 Compliance with
 certain undertakings. At the date of this Agreement,
 the Borrowers are in compliance with Clauses 11.3, 11.5, 11.9 and 11.16.

 
	
  

 	
  

 
	
 10.16.

 	
 Taxes paid. Each
 Borrower has paid all taxes applicable to, or imposed on or in relation to
 that Borrower, its business or the Ship to be owned by it.

 
	
  

 	
  

 
	
 10.17.

 	
 ISM Code and ISPS
 Code compliance. All requirements of the ISM Code
 and the ISPS Code as they relate to the Borrowers, the Approved Managers and
 the Ships have been complied with.

 
	
  

 	
  

 
	
 10.18.

 	
 No money
 laundering. Without prejudice to the generality of
 Clause 2.3, in relation to the borrowing by the Borrowers of the Loan, the
 performance and discharge of its obligations and liabilities under the
 Finance Documents and the Master Agreements, and the transactions and other
 arrangements affected or contemplated by the Finance Documents and the Master
 Agreements to which a Borrower is a party, each Borrower confirms (i) that it
 is acting for its own account; (ii) that it will use the proceeds of the Loan
 for its own benefit, under its full responsibility and exclusively for the
 purposes specified in this Agreement; and (iii) that the foregoing will not
 involve or lead to a contravention of any law, official requirement or other
 regulatory measure or procedure implemented to combat “money laundering” (as
 defined in Article 1 of Directive 2005/60/EC of the European Parliament and
 of the Council.

 
	
  

 	
  

 
	
 11

 	
 GENERAL UNDERTAKINGS

 
	
  

 	
  

 
	
 11.1.

 	
 General. Each
 Borrower undertakes with each Creditor Party to comply with the following
 provisions of this Clause 11 at all times during the Security Period except
 as the Agent may, with the authorisation of the Majority Lenders, otherwise
 permit.

 
	
  

 	
  

 
	
 11.2.

 	
 Title. Each
 Borrower will hold the legal title to, and own the entire beneficial interest
 in the Ship owned by it, its Insurances and Earnings, free from all Security
 Interests and other interests and rights of every kind, except for those
 created by the Finance Documents and the effect of assignments contained in
 the Finance Documents and except for Permitted Security Interests.

 
	
  

 	
  

 
	
 11.3.

 	
 Negative pledge. Neither
 Borrower will create or permit to arise any Security Interest (except for
 Permitted Security Interests) over any asset, present or future (including,
 but not limited to, the Borrowers’ rights against a Swap Counterparty under a
 Master Agreement or all or any part of the Borrowers’ interest in any amount
 payable to a Borrower by a Swap Counterparty under a Master Agreement).

 
	
  

 	
  

 
	
 11.4.

 	
 No disposal of
 assets. Neither Borrower will transfer, lease or
 otherwise dispose of

 
	
  

 	
  

 
	
 (a)

 	
 all or a substantial part of its assets, whether by one transaction
 or a number of transactions, whether related or not; or

 
	
  

 	
  

 
	
 (b)

 	
 any debt payable to it or any other right (present, future or
 contingent right) to receive a payment, including any right to damages or
 compensation,

 
	
  

 	
  

 
	
  

 	
 other than in the ordinary course of business.

 
	
  

 	
  

 
	
 11.5.

 	
 No other
 liabilities or obligations to be incurred. Neither
 Borrower will incur any liability (including, without limitation and for the
 avoidance of doubt, any contingent liability) or obligation except:

 
	
  

 	
  

 
	
 (a)

 	
 liabilities and obligations under the relevant Shipbuilding Contract,
 the Finance Documents to which it is a party and the Charter in relation to
 the Ship to be owned by it;

 
	
  

 	
  

 
	
 (b)

 	
 obligations reasonably incurred in the ordinary course of operating
 and chartering the Ship owned by it;

 
	
  

 	
  

 
	
 (c)

 	
 Designated Transactions; and

 

25

	
  

 	
  

 
	
 (d)

 	
 liabilities and obligations under any loan made to a Borrower by its
 shareholders which is fully subordinated to the satisfaction of the Agent
 (and each Borrower undertakes to procure that no such loan shall be due nor
 capable of becoming due, nor will that Borrower pay or repay any amount under
 any such loan, until after the end of the Security Period),

 
	
  

 	
  

 
	
 11.6.

 	
 Information
 provided to be accurate. All financial and other
 information which is provided in writing by or on behalf of a Borrower under
 or in connection with any Finance Document will be true and not misleading
 and will not omit any material fact or consideration.

 
	
  

 	
  

 
	
 11.7.

 	
 Provision of
 financial statements. Each Borrower will send to the
 Agent:

 
	
  

 	
  

 
	
 (a)

 	
 as soon as possible, but in no event later than 150 days after the
 end of each financial year of that Borrower, the audited individual accounts
 of that Borrower;

 
	
  

 	
  

 
	
 (b)

 	
 as soon as possible, but in no event later than 90 days after the end
 of the first 6-month period in each financial year of that Borrower, the
 unaudited individual accounts of that Borrower, certified as to their
 correctness by the chief financial officer of that Borrower;

 
	
  

 	
  

 
	
 (c)

 	
 as soon as possible, but in no event later than 150 days after the
 end of each financial year of GasLog, the audited consolidated accounts of
 GasLog and its subsidiaries;

 
	
  

 	
  

 
	
 (d)

 	
 as soon as possible, but in no event later than 90 days after the end
 of the first 6-month period in each financial year of GasLog, the unaudited
 consolidated accounts of GasLog and its subsidiaries, certified as to their
 correctness by the chief financial officer of GasLog;

 
	
  

 	
  

 
	
 (e)

 	
 together with each set of accounts provided under 11.7(a), (b), (c)
 and (d), a compliance certificate in the form set out in Schedule 8 to this
 Agreement (or in such other form as the Agent may reasonably require) duly
 signed by the chief financial officers of each Borrower and GasLog together
 with such other financial and other information relating to either Borrower
 or GasLog as the Security Trustee may request for this purpose; and

 
	
  

 	
  

 
	
 (f)

 	
 as soon as possible, but in no event later than 3 months after the
 end of each financial year of that Borrower, a 3 year financial projection
 for that Borrower in a format approved by the Agent.

 
	
  

 	
  

 
	
 11.8.

 	
 Form of financial
 statements. All accounts (audited and unaudited)
 delivered under Clause 11.6 will:

 
	
  

 	
  

 
	
 (a)

 	
 be prepared in accordance with all applicable laws and IFRS;

 
	
  

 	
  

 
	
 (b)

 	
 give a true and fair view of the state of affairs of the relevant
 Borrower (or, as the case may be, GasLog and its subsidiaries) at the date of
 those accounts and of its or their profit for the period to which those
 accounts relate; and

 
	
  

 	
  

 
	
 (c)

 	
 fully disclose or provide for all significant liabilities of the
 relevant Borrower (or, as the case may be, GasLog and its subsidiaries).

 
	
  

 	
  

 
	
 11.9.

 	
 Shareholder and
 creditor notices. Each Borrower will send the Agent,
 at the same time as they are despatched, copies of all communications which
 that Borrower is legally obliged to despatch to that Borrower’s shareholders
 or creditors or any class of them.

 
	
  

 	
  

 
	
 11.10.

 	
 Consents and
 compliance with laws. Each Borrower will maintain in
 force and promptly obtain or renew, and will promptly send certified copies
 to the Agent of, all consents required:

 
	
  

 	
  

 
	
 (a)

 	
 for that Borrower to perform its obligations under any Finance
 Document to which it is party or any Master Agreement;

 
	
  

 	
  

 
	
 (b)

 	
 for the validity or enforceability of any Finance Document to which
 it is a party or any Master Agreement; and

 

26

	
  

 	
  

 
	
 (c)

 	
 for that Borrower to continue to own and operate the Ship owned by
 it;

 
	
  

 	
  

 
	
  

 	
 and that Borrower will comply with the terms of all such consents.
 Without prejudice to the other obligations under the Finance Documents, each
 Borrower shall comply in all respects with all laws and regulations to which
 it may be subject.

 
	
  

 	
  

 
	
 11.11.

 	
 Maintenance of
 Security Interests. Each Borrower will:

 
	
  

 	
  

 
	
 (a)

 	
 at its own cost, do all that it reasonably can to ensure that any
 Finance Document validly creates the obligations and the Security Interests
 which it purports to create; and

 
	
  

 	
  

 
	
 (b)

 	
 without limiting the generality of paragraph (a), at its own cost,
 promptly register, file, record or enrol any Finance Document with any court
 or authority in all Pertinent Jurisdictions, pay any stamp, registration or
 similar tax in all Pertinent Jurisdictions in respect of any Finance
 Document, give any notice or take any other step which, in the opinion of the
 Majority Lenders, is or has become necessary or desirable for any Finance
 Document to be valid, enforceable or admissible in evidence or to ensure or
 protect the priority of any Security Interest which it creates.

 
	
  

 	
  

 
	
 11.12.

 	
 Notification of
 litigation. Each Borrower will provide the Agent
 with details of any legal or administrative action involving that Borrower,
 any Security Party, any Approved Manager or the Ship owned by it, the
 Earnings or the Insurances as soon as it becomes apparent to that Borrower
 that such action has been instituted or is likely to be instituted, unless it
 is clear that the legal or administrative action cannot be considered
 material in the context of any Finance Document.

 
	
  

 	
  

 
	
 11.13.

 	
 No amendment to
 Shipbuilding Contracts. Neither Borrower will agree to
 any material amendment or supplement to, or waive or fail to enforce, the
 relevant Shipbuilding Contract or any of its provisions without the prior
 written consent of the Agent (acting with the authorisation of the Majority
 Lenders) (such consent and authorisation not to be unreasonably withheld)
 save that either Borrower may, without requiring such consent of the Agent,
 agree with the Builder to amend the Shipbuilding Contract for the relevant
 Ship if such amendment:

 
	
  

 	
  

 
	
 (a)

 	
 does not alter the intended type, commercial use, purpose or trading
 capacity of that Ship;

 
	
  

 	
  

 
	
 (b)

 	
 does not alter the construction milestones for payment of the
 instalments of the contract price of that Ship under that Shipbuilding
 Contract;

 
	
  

 	
  

 
	
 (c)

 	
 does not extend the scheduled delivery date for that Ship beyond the
 end of the Availability Period for the Tranche in respect of that Ship;

 
	
  

 	
  

 
	
 (d)

 	
 does not alter the circumstances in which that Shipbuilding Contract
 may be cancelled, terminated or suspended or in which that Borrower and/or
 the Builder may elect to do so;

 
	
  

 	
  

 
	
 (e)

 	
 will not materially reduce that Ship’s anticipated value when
 completed; and

 
	
  

 	
  

 
	
 (f)

 	
 will not result in the Charterer under the Charter of that Ship being
 entitled to either reject that Ship or cancel that Charter.

 
	
  

 	
  

 
	
  

 	
 Provided that
 as soon as reasonably practicable after any such amendment permitted by this
 Clause 11.13, the Borrowers will notify the Agent of such amendment.

 
	
  

 	
  

 
	
 11.14.

 	
 No amendment to
 Master Agreements. Neither Borrower will agree to
 any amendment or supplement to, or waive or fail to enforce, any Master
 Agreement or any of its provisions. For the avoidance of doubt, this clause
 will not prevent either Borrower from entering into or amending Designated
 Transactions or Confirmations

 
	
  

 	
  

 
	
 11.15.

 	
 Principal place of
 business. Each Borrower will maintain its place of
 business, and keep its corporate documents and records, at the address stated
 at the commencement of this 

 

27

	
  

 	
  

 
	
  

 	
 Agreement; and no Borrower will establish, or do anything as a result
 of which it would be deemed to have, a place of business in any country other
 than Bermuda.

 
	
  

 	
  

 
	
 11.16.

 	
 Confirmation of no
 default. Each Borrower will, within 2 Business Days
 after service by the Agent of a written request, serve on the Agent a notice
 which is signed by 2 directors of that Borrower and which:

 
	
  

 	
  

 
	
 (a)

 	
 states that no Event of Default or Potential Event of Default has
 occurred; or

 
	
  

 	
  

 
	
 (b)

 	
 states that no Event of Default or Potential Event of Default has
 occurred, except for a specified event or matter, of which all material
 details are given.

 
	
  

 	
  

 
	
 11.17.

 	
 Notification of
 default. Each Borrower will notify the Agent as soon
 as that Borrower becomes aware of:

 
	
  

 	
  

 
	
 (a)

 	
 the occurrence of an Event of Default or a Potential Event of
 Default; or

 
	
  

 	
  

 
	
 (b)

 	
 any matter which indicates that an Event of Default or a Potential
 Event of Default may have occurred;

 
	
  

 	
  

 
	
  

 	
 and will keep the Agent fully up-to-date with all developments.

 
	
  

 	
  

 
	
 11.18.

 	
 Provision of
 further information. Each Borrower will, as soon as
 practicable after receiving the request, provide the Agent with any
 additional financial or other information relating:

 
	
  

 	
  

 
	
 (a)

 	
 to that Borrower or the Ship owned by it, the Earnings or the
 Insurances; or

 
	
  

 	
  

 
	
 (b)

 	
 to any other matter relevant to, or to any provision of, a Finance
 Document,

 
	
  

 	
  

 
	
  

 	
 which may be requested by the Agent, the Security Trustee, any Lender
 or any Swap Bank at any time.

 
	
  

 	
  

 
	
 11.19.

 	
 Provision of
 translation of documents. In relation to the
 documents referred to above, if the Agent so requires in respect of any of
 those documents, the Borrowers will provide a certified English translation
 prepared by a translator approved by the Agent.

 
	
  

 	
  

 
	
 11.20.

 	
 Access to books and
 records. The Borrowers shall permit one or more
 representatives of the Agent, at the reasonable request of the Agent, to have
 reasonable access to its books and records and to inspect the same during
 normal business hours at its offices upon reasonable prior written notice.

 
	
  

 	
  

 
	
 11.21.

 	
 Press releases. The
 Borrowers will send to the Agent, at the same time as they are dispatched,
 copies of all press releases which are issued by the Borrowers.

 
	
  

 	
  

 
	
 11.22.

 	
 “Know your customer” checks. The Borrowers shall (and shall
 procure that the Guarantors shall) promptly upon the request of the Agent,
 the Lender or Swap Bank concerned supply, or procure the supply of, such
 documentation and other evidence as is reasonably requested by the Agent (for
 itself or on behalf of any Lender or Swap Bank) or the Lender or Swap Bank
 concerned (for itself or on behalf of any prospective new Lender or new Swap
 Bank) in order for the Agent, the Lender or Swap Bank concerned or any
 prospective new Lender or new Swap Bank to carry out and be satisfied it has
 complied with all necessary “know your customer” or other similar checks
 under all applicable laws and regulations pursuant to the transactions
 contemplated in the Finance Documents and Master Agreements.

 
	
  

 	
  

 
	
 11.23.

 	
 Termination of
 Charter or Replacement Charter. Upon termination or
 expiry of a Charter or a Replacement Charter, the Borrower owning the Ship to
 which that Charter (or, as the case may be, that Replacement Charter) relates
 shall, within 30 days after the date of such termination or cancellation,
 deposit $20,000,000 on an account with the Agent and that Borrower shall
 execute security, in favour of the Security Trustee (on behalf of the Lenders
 and the Swap Banks) and acceptable to the Lenders, over such account. Such
 cash collateral 

 

28

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 shall be released to that Borrower upon that Borrower having entered
 into a Replacement Charter (or, as the case may be, another Replacement
 Charter) and that Ship having been delivered and accepted under such
 Replacement Charter.

 
	
  

 	
  

 
	
 11.24.

 	
 Charter
 non-extension

 
	
  

 	
  

 
	
 (a)

 	
 If the Charterer does not exercise its option to extend either
 Charter and subject to Clause 11.24(b), with effect on and from 12 months
 prior to the expiry of such Charter, the Borrower owning the Ship to which
 that Charter relates shall on each Repayment Date pursuant to Clause 8.1
 transfer 90 per cent. of any free cash (after deductions for operating
 expenses in relation to that Ship but otherwise that Borrower undertakes not
 to withdraw or transfer any other amount from the Earnings Account for that
 Ship) on that Earnings Account (up to $10,000,000 in aggregate for that Ship)
 to an account with the Agent and shall execute security, in favour of the
 Security Trustee (on behalf of the Lenders and the Swap Banks) and acceptable
 to the Lenders, over such account (with the monies in such secured account
 (including any interest thereon) only being used for repaying, on the
 Maturity Date, firstly the Loan, and making the payments referred to in
 Clause 8.3, secondly any Swap Exposure and thereafter returned to the
 relevant Borrower).

 
	
  

 	
  

 
	
 (b)

 	
 However, if Clause 11.24(a) applies to a Borrower
 but subsequently that Borrower enters into a Replacement Charter of the Ship
 owned by that Borrower and that Ship is delivered and accepted under such
 Replacement Charter, the monies in the secured account referred to in Clause
 11.24(a) for that Ship shall be released to that Borrower and Clause 11.24(a)
 shall thereupon cease to apply to that Borrower.

 
	
  

 	
  

 	
  

 
	
 11.25.

 	
 Financial
 covenants.

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 In this Clause 11.25, Clause 12.4 and any compliance certificate
 delivered pursuant to Clause 11.7(e):

 
	
  

 	
  

 	
  

 
	
  

 	
 “Borrower’s Cash” means, in relation to a Borrower at any
 date of determination under this Agreement, the aggregate value on the date
 of determination of that Borrower’s credit balances on any deposit, savings
 or current account and that Borrower’s cash in hand, each as determined in
 accordance with IFRS, but excluding any such credit balances and cash then
 subject to a Security Interest (other than any Security Interest arising
 under a Finance Document);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Borrower’s Cash Equivalent” means, in relation to a Borrower
 at any date of determination under this Agreement, the aggregate value of:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 each certificate of deposit maturing within 1 year after the date of
 determination and issued by either the Agent or any other bank or financial
 institution approved by the Agent;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 each investment in marketable debt obligations issued or guaranteed
 by the government of the United States of America or any member state of the
 European Economic Area and having a rating of AAA from Standard & Poor’s
 Ratings Group or the equivalent with any other principal credit rating agency
 in the United States of America or Europe, or by an instrumentality or agency
 of any of them having an equivalent credit rating, maturing within 1 year after
 the date of determination and not convertible or exchangeable to any other
 security;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 each commercial paper not convertible or exchangeable to any other
 security:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 for which a recognised trading market exists;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 issued by an issuer incorporated in the United States of America or
 any member state of the European Economic Area;

 

29

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 which
 matures within 1 year after the date of determination; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 which has a
 credit rating of either A-1 or higher by Standard & Poor’s Rating
 Services or Fl or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s
 Investor Services Limited or, if no rating is available in respect of the
 commercial paper, the issuer of which has, in respect of its long-term
 unsecured and non-credit enhanced debt obligations, an equivalent rating;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 each
 Sterling bill of exchange eligible for rediscount at the Bank of England and
 accepted by a bank or financial institution approved by the Facility Agent
 (or their dematerialised equivalent);

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 each
 investment in a money market fund which:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 has a credit
 rating of either A-1 or higher by Standard & Poor’s Rating Services or Fl
 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor Services
 Limited;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 invests
 substantially all its assets in securities of the types described in
 paragraphs (a) to (d) above; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 can be turned into cash on not
 more than 30 days’ notice; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 each other
 debt security approved by the Majority Lenders,

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 in each case
 as determined in accordance with IFRS, to which that Borrower is beneficially
 entitled at that time and which is not issued or guaranteed by any Excluded
 Company nor subject to any Security Interest (other than any Security
 Interest arising under a Finance Document);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Excluded Companies” means the
 Counter-Guarantors, GasLog and GasLog Carriers and each subsidiary of either
 Counter-Guarantor, GasLog or GasLog Carriers and, in the singular, means any
 of them;

 
	
  

 	
  

 	
  

 
	
  

 	
 “GasLog Group” means GasLog and its
 subsidiaries;

 
	
  

 	
  

 	
  

 
	
  

 	
 “GasLog Group’s Cash” means, at any date
 of determination under this Agreement, the aggregate value on the date of
 determination of the GasLog Group’s credit balances on any deposit, savings
 or current account and the GasLog Group’s cash in hand, each as determined on
 a consolidated basis in accordance with IFRS, but excluding any such credit
 balances and cash then subject to a Security Interest (other than any
 Security Interest arising under a Finance Document);

 
	
  

 	
  

 	
  

 
	
  

 	
 “GasLog Group’s Cash Equivalent” means, at
 any date of determination under this Agreement, the aggregate value of:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 each
 certificate of deposit maturing within 1 year after the date of determination
 and issued by either the Agent or any other bank or financial institution
 approved by the Agent;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 each
 investment in marketable debt obligations issued or guaranteed by the
 government of the United States of America or any member state of the
 European Economic Area and having a rating of AAA from Standard & Poor’s
 Ratings Group or the equivalent with any other principal credit rating agency
 in the United States of America or Europe, or by an instrumentality or agency
 of any of them having an equivalent credit rating, maturing within 1 year
 after the date of determination and not convertible or exchangeable to any
 other security;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 each commercial
 paper not convertible or exchangeable to any other security:

 

30 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 for which a
 recognised trading market exists;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 issued by an
 issuer incorporated in the United States of America or any member state of
 the European Economic Area;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 which
 matures within 1
 year after the date of determination; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 which has a
 credit rating of either A-1 or higher by Standard & Poor’s Rating
 Services or Fl or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor
 Services Limited or, if no rating is available in respect of the commercial
 paper, the issuer of which has, in respect of its long-term unsecured and
 non-credit enhanced debt obligations, an equivalent rating;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 each
 Sterling bill of exchange eligible for rediscount at the Bank of England and
 accepted by a bank or financial institution approved by the Facility Agent
 (or their dematerialised equivalent);

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 each
 investment in a money market fund which:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 has a credit
 rating of either A1 or higher by Standard & Poor’s Rating Services or F1
 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor Services
 Limited;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 invests
 substantially all its assets in securities of the types described in
 paragraphs (a) to (d) above; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 can be
 turned into cash on not more than 30 days’ notice; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 each other
 debt security approved by the Majority Lenders,

 
	
  

 	
  

 	
  

 
	
  

 	
 in each case
 as determined on a consolidated basis in accordance with IFRS, to which any
 member of the GasLog Group is alone (or together with any other member of the
 GasLog Group) beneficially entitled at that time and which is not issued or
 guaranteed by any Excluded Company nor subject to any Security Interest
 (other than any Security Interest arising under a Finance Document);

 
	
  

 	
  

 	
  

 
	
  

 	
 “GasLog Group’s Current Assets” means, at
 any date of determination under this Agreement, the amount of the current
 assets of the GasLog Group determined on a consolidated basis in accordance
 with IFRS and as shown in the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 	
  

 
	
  

 	
 “GasLog Group’s Current Liabilities”
 means, at any date of determination under this Agreement, the amount of the
 current liabilities of the GasLog Group determined on a consolidated basis in
 accordance with IFRS and as shown in the GasLog Group’s Latest Accounts (but
 excluding the short term portion of any long term Financial Indebtedness);

 
	
  

 	
  

 
	
  

 	
 “GasLog Group’s Debt Service” means, at
 any date of determination under this Agreement, the aggregate amount of interest,
 other finance charges (in each case, whether or not paid, payable or
 capitalised) and principal accrued by the GasLog Group in respect of
 borrowings including:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the interest
 element of leasing and hire purchase payments;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 commitment
 fees, commissions, arrangement fees and guarantee fees; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 amounts in
 the nature of interest payable in respect of any shares other than equity
 share capital,

 
	
  

 	
  

 	
  

 
	
  

 	
 adjusted
 (but without double counting) by:

 

31

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 adding back
 the net amount payable (or deducting the net amount receivable) by members of
 the GasLog Group under any interest or (so far as they relate to interest)
 currency hedging arrangements; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 deducting
 interest income of the GasLog Group to the extent freely distributable to a
 member of the GasLog Group in cash,

 
	
  

 	
  

 
	
  

 	
 each as
 determined on a consolidated basis in accordance with IFRS and as shown in
 the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 
	
  

 	
 “GasLog Group’s EBITDA” means, at any date
 of determination under this Agreement, the profit on ordinary activities
 before taxation of the GasLog Group, adjusted by:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 adding back
 GasLog Group’s Interest Payable;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 deducting
 GasLog Group’s Interest Receivable;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 taking no
 account of any exceptional or extraordinary item;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 adding back
 depreciation and amortisation;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 deducting
 its share of profits from affiliates; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 adding back
 its loss of profits from affiliates;

 
	
  

 	
  

 
	
  

 	
 determined,
 in each case, on a consolidated basis in accordance with IFRS and as shown in
 the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 
	
  

 	
 “GasLog Group’s Interest Payable” means,
 at any date of determination under this Agreement, all interest (including,
 without limitation, all net interest payable under interest rate swaps), all
 fees (including, but not limited to, commitment fees) and periodic financing
 charges including commissions, discounts and the interest element of rental
 payments or finance or capital leases (whether, in each case, paid, payable
 or capitalised), and all other costs, charges and expenses incurred by the
 GasLog Group in effecting, servicing or maintaining its GasLog Group’s Total
 Interest Bearing Debt determined on a consolidated basis in accordance with
 IFRS and as shown in the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 
	
  

 	
 “GasLog Group’s Interest Receivable”
 means, at any date of determination under this Agreement, all interest
 (including, without limitation, all net interest receivable under interest
 rate swaps), all fees (including, but not limited to, commitment fees) and
 periodic financing charges including commissions, discounts and the interest
 element of rental payments or finance or capital leases (whether, in each
 case, paid, payable or capitalised), and all other costs, charges and expenses
 received or receivable by the GasLog Group in connection with any Financial
 Indebtedness of a type referred to in the definition of GasLog Group’s Total
 Interest Bearing Debt determined on a consolidated basis in accordance with
 IFRS and as shown in the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 
	
  

 	
 “GasLog Group’s Latest Accounts” means, at
 any date, the consolidated accounts of the GasLog Group most recently
 delivered to the Agent pursuant to clause 11.3 of the Guarantee executed by
 GasLog;

 
	
  

 	
  

 
	
  

 	
 “GasLog Group’s Market Adjusted Net Worth”
 means, at any date of determination under this Agreement, the GasLog Group’s
 Total Capitalisation adjusted to reflect the market value of the ships and
 all other assets owned by the GasLog Group, less GasLog Group’s Total Debt;

 
	
  

 	
  

 
	
  

 	
 “GasLog Group’s Total Capitalisation”
 means, at any date of determination under this Agreement, the amount of the
 total assets of the GasLog Group determined on a consolidated basis in
 accordance with IFRS and as shown in the GasLog Group’s Latest Balance Sheet;

 

32

	
  

 	

  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “GasLog Group’s Total Debt” means, at any date of determination
 under this Agreement, the amount of the total debt of the GasLog Group
 determined on a consolidated basis in accordance with IFRS and as shown in
 the GasLog Group’s Latest Balance Sheet;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “GasLog Group’s Total Interest Bearing Debt” means, in respect of the GasLog Group,
 at any time the aggregate of the following:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 outstanding principal amount of any moneys borrowed or raised;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the outstanding
 principal amount of any acceptance under any acceptance credit;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the
 outstanding principal amount of any bond, note, debenture, loan stock or
 other similar instrument;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the
 capitalised element of indebtedness under a finance or capital lease;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 the
 outstanding principal amount of all moneys owing in connection with the sale
 or discounting of receivables (otherwise than on a non-recourse basis);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 the
 outstanding principal amount of any indebtedness arising from any deferred
 payment agreements arranged primarily as a method of raising finance or
 financing the acquisition of an asset;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 any fixed or
 minimum premium payable on the repayment or redemption of any instrument
 referred to in paragraph (c) above;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 the
 outstanding principal amount of any indebtedness arising in connection with
 any other transaction (including any forward sale or purchase agreement)
 which has the commercial effect of a borrowing; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 the
 outstanding principal amount of any indebtedness of any person of a type
 referred to in paragraphs (a) - (h) above which is the subject of a
 guarantee, indemnity or similar assurance against financial loss given by a
 member of the GasLog Group; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “GasLog Group’s Working Capital” means Current Assets less Current
 Liabilities.

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 The
 Borrowers shall ensure that the consolidated financial position of the GasLog
 Group on a consolidated basis is such that at all times during the Security
 Period:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 GasLog Group’s
 Working Capital is not less than $0;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 there is
 available to the GasLog Group at all times after the first Drawdown Date an
 aggregate amount of GasLog Group’s Cash and GasLog Group’s Cash Equivalents
 equal to at least the greater of (i) $20,000,000 and (ii) 3 per cent. of
 GasLog Group’s Total Interest Bearing Debt;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 the ratio of
 GasLog Group’s Total Debt to GasLog Group’s Total Capitalisation is not more
 than:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 prior to the
 date of a Qualified IPO, 0.70 : 1; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 following
 the date of a Qualified IPO, 0.65 : 1;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 GasLog
 Group’s Market Adjusted Net Worth is not less than:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 prior to the
 date of a Qualified IPO, $200,000,000; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 following
 the date of a Qualified IPO, $350,000,000; and

 

33

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 the ratio of
 GasLog Group’s EBITDA to GasLog Group’s Debt Service is not less than 1.10 :
 1.

 
	
  

 
	
 (c)

 	
  

 	
 The
 Borrowers shall ensure that there is available to each Borrower at all times
 from the Drawdown Date of the Advance relating to the Ship owned or to be by
 that Borrower an aggregate amount of Borrower’s Cash and Borrower’s Cash
 Equivalents of at least US$1,500.000.

 
	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 CORPORATE UNDERTAKINGS

 
	
  

 	
  

 	
  

 
	
 12.1.

 	
  

 	
 General. Each Borrower also undertakes with
 each Creditor Party to comply with the following provisions of this Clause 12
 at all times during the Security Period except as the Agent may, with the
 authorisation of the Majority Lenders, otherwise permit.

 
	
  

 	
  

 	
  

 
	
 12.2.

 	
  

 	
 Maintenance of status. Each Borrower will
 maintain its separate corporate existence and remain in good standing under
 the laws of Bermuda.

 
	
  

 	
  

 	
  

 
	
 12.3.

 	
  

 	
 Negative undertakings. No Borrower will:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 carry on any
 business other than the ownership, chartering, operation and supervision of
 construction of the Ship owned by it; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 change its
 legal name, type of organisation or jurisdiction of organisation; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 provide any
 form of credit or financial assistance to any person or enter into any
 transaction with or involving any person on terms which are, in any respect,
 less favourable to the Borrowers than those which it could obtain in a
 bargain made at arms’ length;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 open or
 maintain any account with any bank or financial institution except accounts
 with the Agent and Citibank N.A., London Branch (in its capacity as the
 holder of an Earnings Account) for the purposes of the Finance Documents;

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 issue, allot
 or grant any person a right to any shares in its capital or repurchase or
 reduce its issued share capital;

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 acquire,
 sell or otherwise dispose of in any manner whatsoever any asset, or enter
 into any transaction in a derivative other than Designated Transactions;

 
	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 enter into
 any form of amalgamation, merger or de-merger or any form of reconstruction
 or reorganisation; or

 
	
  

 	
  

 	
  

 
	
 (h)

 	
  

 	
 change its
 fiscal year end date.

 
	
  

 	
  

 	
  

 
	
 12.4.

 	
  

 	
 Dividends

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 GasLog shall
 be entitled to declare and pay dividends:

 
	
  

 
	
  

 	
  

 	
 (i)

 	
 prior to the
 date of a Qualified IPO, in an amount of not more than 50 per cent. of its
 annual net income provided that no
 Event of Default has occurred which is continuing and no Event of Default
 will result from the declaration or payment of such dividends; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 following
 the date of a Qualified IPO, in
 such amount as it may decide provided that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 there is
 available to the GasLog Group following the payment of such dividend an
 aggregate amount of GasLog Group’s Cash and GasLog Group’s Cash Equivalents
 equal to at least 4 per cent. of GasLog Group’s Total Interest Bearing Debt;
 and

 

34

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
 no Event of
 Default has occurred which is continuing and no Event of Default will result
 from the declaration or payment of such dividends.

 
	
  

 	
  

 
	
 (b)

 	
 Each
 Borrower shall be entitled to declare and pay dividends in such amount as it
 may decide provided that no
 Event of Default has occurred which is continuing and no Event of Default
 will result from the declaration or payment of such dividends.

 
	
  

 	
  

 
	
 (c)

 	
 Save as
 permitted by this Clause 12.4, no Borrower will pay any dividend or make any
 other form of distribution or effect any form of redemption, purchase or
 return of share capital.

 
	
  

 	
  

 
	
 13

 	
 INSURANCE

 
	
  

 	
  

 
	
 13.1.

 	
 General. Each Borrower also undertakes with
 each Creditor Party to comply with the following provisions of this Clause 13
 at all times during the Security Period (from the Delivery Date of each Ship)
 except as the Agent may, with the authorisation of the Majority Lenders,
 otherwise permit.

 
	
  

 	
  

 
	
 13.2.

 	
 Maintenance of obligatory insurances. Each
 Borrower shall keep the Ship owned by it insured at the expense of that
 Borrower against:

 
	
  

 	
  

 
	
 (a)

 	
 fire and
 usual marine risks (including hull and machinery, hull and freight interest
 and excess risks);

 
	
  

 	
  

 
	
 (b)

 	
 war risks
 (including, without limitation, risks relating to terrorism, piracy, war risk
 P&I and confiscation);

 
	
  

 	
  

 
	
 (c)

 	
 protection
 and indemnity risks; and

 
	
  

 	
  

 
	
 (d)

 	
 any other
 risks against which, having regard to practices and other circumstances
 prevailing at the relevant time and in the reasonable opinion of the Security
 Trustee requiring it, would be reasonable for that Borrower to insure.

 
	
  

 	
  

 
	
 13.3.

 	
 Terms of obligatory insurances. Each
 Borrower shall effect such insurances in respect of the Ship owned by it:

 
	
  

 	
  

 
	
 (a)

 	
 in Dollars;

 
	
  

 	
  

 
	
 (b)

 	
 in the case
 of fire and usual marine risks and war risks (including hull interest and
 freight interest), in an amount on an agreed value basis at least the greater
 of (i) an amount which when aggregated with the agreed value of the
 obligatory insurances on the other Ship when subject to a Mortgage is not
 less than 120 per cent. of the Loan and (ii) the Fair Market Value of the
 Ship owned by it;

 
	
  

 	
  

 
	
 (c)

 	
 in the case
 of hull and machinery insurances (excluding hull interest and freight
 interest), in an amount on an agreed value basis of at least 80 per cent. of
 the Fair Market Value of the Ship owned by it provided that the Borrowers always comply with the
 obligation in Clause 13.3(b);

 
	
  

 	
  

 
	
 (d)

 	
 in the case
 of oil pollution liability risks, for an aggregate amount equal to the
 highest level of cover from time to time available under basic protection and
 indemnity club entry and in the international marine insurance market;

 
	
  

 	
  

 
	
 (e)

 	
 in relation
 to protection and indemnity risks in respect of the full tonnage of the Ship
 owned by it;

 
	
  

 	
  

 
	
 (f)

 	
 on approved
 terms; and

 
	
  

 	
  

 
	
 (g)

 	
 through
 approved brokers and with approved insurance companies and/or underwriters
 or, in the case of war risks and protection and indemnity risks, in approved
 war risks and protection and indemnity risks associations.

 

35

	
  

 	
  

 	
  

 
	
 13.4.

 	
 Further protections for the Creditor Parties. In
 addition to the terms set out in Clause 13.3, each Borrower shall procure
 that the obligatory insurances shall:

 
	
  

 	
  

 
	
 (a)

 	
 whenever the
 Security Trustee requires, name (or be amended to name) the Security Trustee
 as additional named assured for its rights and interests, warranted no
 operational interest and with full waiver of rights of subrogation against
 the Security Trustee, but without the Security Trustee thereby being liable
 to pay (but having the right to pay) premiums, calls or other assessments in
 respect of such insurance;

 
	
  

 	
  

 
	
 (b)

 	
 name the
 Security Trustee as loss payee with such directions for payment as the
 Security Trustee may specify;

 
	
  

 	
  

 
	
 (c)

 	
 provide that
 all payments by or on behalf of the insurers under the obligatory insurances
 to the Security Trustee shall be made without set-off, counterclaim or
 deductions or condition whatsoever;

 
	
  

 	
  

 
	
 (d)

 	
 provide that
 such obligatory insurances shall be primary without right of contribution
 from other insurances which may be carried by the Security Trustee or any
 other Creditor Party; and

 
	
  

 	
  

 
	
 (e)

 	
 provide that
 the Security Trustee may make proof of loss if the Borrowers fail to do so.

 
	
  

 	
  

 
	
 13.5.

 	
 Renewal of obligatory insurances. Each
 Borrower shall:

 
	
  

 	
  

 
	
 (a)

 	
 at least 15
 days before the expiry of any obligatory insurance effected by it:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 notify the
 Security Trustee of the brokers (or other insurers) and any protection and
 indemnity or war risks association through or with whom that Borrower
 proposes to renew that obligatory insurance and of the proposed terms of
 renewal; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 obtain the
 Security Trustee’s approval to the matters referred to in paragraph (i);

 
	
  

 	
  

 
	
 (b)

 	
 at least 5
 days before the expiry of any obligatory insurance effected by it, renew that
 obligatory insurance in accordance with the Security Trustee’s approval
 pursuant to paragraph (a); and

 
	
  

 	
  

 
	
 (c)

 	
 procure that
 the approved brokers and/or the war risks and protection and indemnity
 associations with which such a renewal is effected shall promptly after the
 renewal notify the Security Trustee in writing of the terms and conditions of
 the renewal.

 
	
  

 	
  

 
	
 13.6.

 	
 Copies of policies; letters of undertaking.
 Each Borrower shall ensure that all approved brokers provide the Security
 Trustee with pro forma copies of all policies relating to the obligatory
 insurances which they are to effect or renew and of a letter or letters or
 undertaking in a form required by the Security Trustee and including
 undertakings by the approved brokers that:

 
	
  

 	
  

 
	
 (a)

 	
 they will
 have endorsed on each policy, immediately upon issue, a loss payable clause
 and a notice of assignment complying with the provisions of Clause 13.4;

 
	
  

 	
  

 
	
 (b)

 	
 they will
 hold such policies, and the benefit of such insurances, to the order of the
 Security Trustee in accordance with the said loss payable clause;

 
	
  

 	
  

 
	
 (c)

 	
 they will
 advise the Security Trustee immediately of any material change to the terms
 of the obligatory insurances;

 
	
  

 	
  

 
	
 (d)

 	
 they will
 notify the Security Trustee, not less than 10 days before the expiry of the
 obligatory insurances, in the event of their not having received notice of
 renewal instructions from that Borrower or its agents and, in the event of
 their receiving instructions to renew, they will promptly notify the Security
 Trustee of the terms of the instructions; and

 

36

	
  

 	
  

 
	
 (e)

 	
 they will
 not set off against any sum recoverable in respect of a claim relating to the
 Ship owned by that Borrower under such obligatory insurances any premiums or
 other amounts due to them or any other person whether in respect of that Ship
 or otherwise, they waive any lien on the policies, or any sums received under
 them, which they might have in respect of such premiums or other amounts, and
 they will not cancel such obligatory insurances by reason of non-payment of
 such premiums or other amounts, and will arrange for a separate policy to be
 issued in respect of that Ship forthwith upon being so requested by the
 Security Trustee.

 
	
  

 	
  

 
	
 13.7.

 	
 Copies of certificates of entry. Each
 Borrower shall ensure that any protection and indemnity and/or war risks
 associations in which the Ship owned by it is entered provides the Security
 Trustee with:

 
	
  

 	
  

 
	
 (a)

 	
 a certified
 copy of the certificate of entry for that Ship;

 
	
  

 	
  

 
	
 (b)

 	
 a letter or
 letters of undertaking in such form as may be required by the Security
 Trustee; and

 
	
  

 	
  

 
	
 (c)

 	
 a certified
 copy of each certificate of financial responsibility for pollution by oil or
 other Environmentally Sensitive Material issued by the relevant certifying
 authority in relation to that Ship.

 
	
  

 	
  

 
	
 13.8.

 	
 Deposit of original policies. Each Borrower
 shall ensure that all policies relating to obligatory insurances effected by
 it are deposited with the approved brokers through which the insurances are
 effected or renewed.

 
	
  

 	
  

 
	
 13.9.

 	
 Payment of premiums. Each Borrower shall
 punctually pay all premiums or other sums payable in respect of the
 obligatory insurances effected by it and produce all relevant receipts when
 so required by the Security Trustee.

 
	
  

 	
  

 
	
 13.10.

 	
 Guarantees. Each Borrower shall ensure that any
 guarantees required by a protection and indemnity or war risks association
 are promptly issued and remain in full force and effect.

 
	
  

 	
  

 
	
 13.11.

 	
 Compliance with terms of insurances. Neither
 Borrower shall do nor omit to do (nor permit to be done or not to be done)
 any act or thing which would or might render any obligatory insurance
 invalid, void, voidable or unenforceable or render any sum payable under an
 obligatory insurance repayable in whole or in part; and, in particular:

 
	
  

 	
  

 
	
 (a)

 	
 each
 Borrower shall take all necessary action and comply with all requirements
 which may from time to time be applicable to the obligatory insurances, and
 (without limiting the obligation contained in Clause 13.6(c)) ensure that the
 obligatory insurances are not made subject to any exclusions or
 qualifications to which the Security Trustee has not given its prior
 approval;

 
	
  

 	
  

 
	
 (b)

 	
 neither
 Borrower shall make any changes relating to the classification or
 classification society or manager or operator of the Ship owned by it unless
 approved by the underwriters of the obligatory insurances;

 
	
  

 	
  

 
	
 (c)

 	
 each
 Borrower shall make (and promptly supply copies to the Agent of) all
 quarterly or other voyage declarations which may be required by the
 protection and indemnity risks association in which the Ship owned by it is
 entered to maintain cover for trading to the United States of America and
 Exclusive Economic Zone (as defined in the United States Oil Pollution Act
 1990 or any other applicable legislation);

 
	
  

 	
  

 
	
 (d)

 	
 each
 Borrower shall procure that no change is made to the arrangements for
 insurances of war risks and allied perils (including piracy) coverage and
 shall comply at all times with provisions of trading to conditional or
 excluded areas; and

 
	
  

 	
  

 
	
 (e)

 	
 neither
 Borrower shall employ the Ship owned by it, nor allow it to be employed,
 otherwise than in conformity with the terms and conditions of the obligatory
 insurances, without first obtaining the consent of the insurers and complying
 with any requirements (as to extra premium or otherwise) which the insurers
 specify.

 

37

	
  

 	
  

 	
  

 
	
 13.12.

 	
 Alteration to terms of insurances.
 Neither Borrower shall either make or agree to any material alteration to the
 terms of any obligatory insurance nor waive any right relating to any
 obligatory insurance.

 
	
  

 	
  

 
	
 13.13.

 	
 Settlement of claims.
 Neither Borrower shall settle, compromise or abandon any claim under any
 obligatory insurance for Total Loss or for a Major Casualty, and shall do all
 things necessary and provide all documents, evidence and information to
 enable the Security Trustee to collect or recover any moneys which at any
 time become payable in respect of the obligatory insurances.

 
	
  

 	
  

 
	
 13.14.

 	
 Provision of copies of communications.
 Each Borrower shall provide the Security Trustee, at the time of each such
 communication, copies of all material written communications between that
 Borrower and:

 
	
  

 	
  

 
	
 (a)

 	
 the approved
 brokers; and

 
	
  

 	
  

 
	
 (b)

 	
 the approved protection and indemnity and/or war risks associations;
 and

 
	
  

 	
  

 
	
 (c)

 	
 the approved insurance companies and/or underwriters, which relate
 directly or indirectly to:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 that Borrower’s obligations relating to, under the obligatory
 insurances, declarations and payments of additional premiums or calls; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any credit arrangements made between that Borrower and any of the
 persons referred to in paragraphs (a) or (b) relating wholly or partly to the
 effecting or maintenance of the obligatory insurances.

 
	
  

 	
  

 
	
 13.15.

 	
 Provision of information.
 In addition, each Borrower shall promptly provide the Security Trustee (or
 any persons which it may designate) with any information which the Security
 Trustee (or any such designated person) reasonably requests for the purpose
 of:

 
	
  

 	
  

 
	
 (a)

 	
 obtaining or preparing any report from an independent marine
 insurance broker as to the adequacy of the obligatory insurances effected or
 proposed to be effected; and/or

 
	
  

 	
  

 
	
 (b)

 	
 effecting, maintaining or renewing any such insurances as are
 referred to in Clause 13 or dealing with or considering any matters relating
 to any such insurances;

 
	
  

 	
  

 
	
  

 	
 and the Borrowers shall, forthwith upon demand, indemnify the
 Security Trustee in respect of all fees and other expenses incurred by or for
 the account of the Security Trustee in connection with any such report as is
 referred to in paragraph (a) no more than once per calendar year per Ship
 unless an Event of Default has occurred which is continuing.

 
	
  

 	
  

 
	
 13.16.

 	
 Mortgagee’s interest and additional perils
 insurances. The Security Trustee shall be entitled
 from time to time to effect, maintain and renew a mortgagee’s interest
 additional perils insurance and a mortgagee’s interest insurance in such
 amounts, on such terms, through such insurers and generally in such manner as
 the Majority Lenders may from time to time consider appropriate and the
 Borrowers shall upon demand fully indemnify the Creditor Parties in respect
 of all premiums and other expenses which are incurred in connection with or
 with a view to effecting, maintaining or renewing any such insurance or
 dealing with, or considering, any matter arising out of any such insurance.

 
	
  

 	
  

 
	
 14

 	
 SHIP COVENANTS

 
	
  

 	
  

 
	
 14.1.

 	
 General. Each
 Borrower also undertakes with each Creditor Party to comply with the
 following provisions of this Clause 14 at all times during the Security
 Period (from the Delivery Date of the of each Ship) except as the Agent, with
 the authorisation of the Majority Lenders, may otherwise permit.

 
	
  

 	
  

 
	
 14.2.

 	
 Ship’s name and registration.
 Each
 Borrower shall keep the Ship owned by it registered in its name as a Bermudan
 Ship; shall not do, omit to do or allow to be done anything as a result

 

38

	
  

 	
  

 
	
  

 	
 of which such registration might be cancelled or imperilled; and
 shall not change the name or port of registry of the Ship owned by it.

 
	
  

 	
  

 
	
 14.3.

 	
 Repair and
 classification. Each Borrower shall keep the Ship
 owned by it in a good and safe condition and state of repair:

 
	
  

 	
  

 
	
 (a)

 	
 consistent with first-class ship ownership and management practice;

 
	
  

 	
  

 
	
 (b)

 	
 so as to maintain the highest notation with the classification of
 such Ship specified in the Shipbuilding Contract in respect of such Ship free
 of overdue recommendations and conditions affecting that Ship’s class; and

 
	
  

 	
  

 
	
 (c)

 	
 so as to comply with all laws and regulations applicable to vessels
 registered at ports in Bermuda or to vessels trading to any jurisdiction to
 which that Ship may trade from time to time, including but not limited to the
 ISM Code and the ISPS Code.

 
	
  

 	
  

 
	
 14.4.

 	
 Modification.
 Neither Borrower shall make any modification or repairs to, or replacement of
 any Ship or equipment installed on it which would or might materially alter
 the structure, type or performance characteristics of that Ship or materially
 reduce its value.

 
	
  

 	
  

 
	
 14.5.

 	
 Removal of parts.
 Neither Borrower shall remove any material part of any Ship, or any item of
 equipment installed on, any Ship unless the part or item so removed is
 forthwith replaced by a suitable part or item which is in the same condition
 as or better condition than the part or item removed, is free from any
 Security Interest or any right in favour of any person other than the
 Security Trustee and becomes on installation on the relevant Ship the
 property of the relevant Borrower and subject to the security constituted by
 the relevant Mortgage and the Deed of Covenant Provided that a Borrower
 may install equipment owned by a third party if the equipment can be removed
 without any risk of damage to the Ship owned by it.

 
	
  

 	
  

 
	
 14.6.

 	
 Surveys.
 Each Borrower shall submit the Ship owned by it regularly to all periodical
 or other surveys which may be required for classification purposes and, if so
 required by the Security Trustee provide the Security Trustee, with copies of
 all survey reports.

 
	
  

 	
  

 
	
 14.7.

 	
 Inspection.
 Each Borrower shall permit the Security Trustee (at any given time by no more
 than two (2) surveyors or other persons appointed by it for that purpose at
 the cost of the Borrowers) to board the Ship owned by it at all reasonable
 times to inspect its condition or to satisfy themselves about proposed or
 executed repairs and shall afford all proper facilities for such inspections Provided
 that prior to the occurrence of an Event of Default which is
 continuing, any such inspection shall be carried out without interfering with
 or hindering the Ship’s safe and efficient operations.

 
	
  

 	
  

 
	
 14.8.

 	
 Prevention of and
 release from arrest. Each Borrower shall promptly
 discharge:

 
	
  

 	
  

 
	
 (a)

 	
 all liabilities which give or may give rise to maritime or possessory
 liens on or claims enforceable against the Ship owned by it, the Earnings or
 the Insurances;

 
	
  

 	
  

 
	
 (b)

 	
 all taxes, dues and other amounts charged in respect of the Ship
 owned by it, the Earnings or the Insurances; and

 
	
  

 	
  

 
	
 (c)

 	
 all other outgoings whatsoever in respect of the Ship owned by it,
 the Earnings or the Insurances;

 
	
  

 	
  

 
	
  

 	
 and, forthwith upon receiving notice of the arrest of the Ship owned
 by it, or of its detention in exercise or purported exercise of any lien or
 claim, that Borrower shall procure its release by providing bail or otherwise
 as the circumstances may require.

 
	
  

 	
  

 
	
 14.9.

 	
 Compliance with
 laws etc. Each Borrower shall:

 

39

	
  

 	
  

 
	
 (a)

 	
 comply, or procure compliance with the ISM Code, the ISPS Code, all
 Environmental Laws and all other laws or regulations relating to the Ship
 owned by it, its ownership, operation and management or to the business of
 that Borrower;

 
	
  

 	
  

 
	
 (b)

 	
 not employ the Ship owned by it nor allow its employment in any
 manner contrary to any law or regulation in any relevant jurisdiction
 including but not limited to the ISM Code and the ISPS Code; and

 
	
  

 	
  

 
	
 (c)

 	
 in the event of hostilities in any part of the world (whether war is
 declared or not), not cause or permit the Ship owned by it to enter or trade
 to any zone which is declared a war zone by any government or by the Ship’s
 war risks insurers (and, in the case of piracy, verified by the International
 Group of P&I clubs) unless, prior to entering or trading to any such
 zone, that Borrower:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 takes reasonable preventive measures, and complies with all
 applicable provisions of the Charter, for the Ship entering or trading to
 such zone; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 effects (at its own expense) any special, additional or modified
 insurance cover if such cover is necessary to keep that Ship properly insured
 in accordance with this Agreement notwithstanding such entry or trade; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 confirms in writing to the Security Trustee that that Borrower has
 complied with paragraphs (i) and (ii) above and provides any evidence of such
 compliance which may be reasonably requested by the Security Trustee.

 

	
  

 	
  

 
	
 14.10.

 	
 Provision of
 information. Each Borrower shall promptly provide
 the Security Trustee with any information which it reasonably requests
 regarding:

 
	
  

 	
  

 
	
 (a)

 	
 the Ship owned by it, its employment and position;

 
	
  

 	
  

 
	
 (b)

 	
 the Earnings and payments and amounts due to the master and crew of
 the Ship owned by it;

 
	
  

 	
  

 
	
 (c)

 	
 any expenses incurred, or likely to be incurred, in connection with
 the operation, maintenance or repair of the Ship owned by it and any payments
 made in respect of that Ship;

 
	
  

 	
  

 
	
 (d)

 	
 any towages and salvages;

 
	
  

 	
  

 
	
 (e)

 	
 its compliance, the technical Approved Managers’ compliance and the
 compliance of the Ship owned by it with the ISM Code and the ISPS Code,

 
	
  

 	
  

 
	
  

 	
 and, upon the Security Trustee’s request, provide copies of any
 current charter relating to the Ship owned by it, of any current charter
 guarantee and copies of the Borrower’s or the technical Approved Manager’s
 Document of Compliance.

 
	
  

 	
  

 
	
 14.11.

 	
 Notification of
 certain events. Each Borrower shall immediately
 notify the Security Trustee by fax, confirmed forthwith by letter, of:

 
	
  

 	
  

 
	
 (a)

 	
 any casualty which is or is likely to be or to become a Major Casualty;

 
	
  

 	
  

 
	
 (b)

 	
 any occurrence as a result of which the Ship owned by it has become
 or is, by the passing of time or otherwise, likely to become a Total Loss;

 
	
  

 	
  

 
	
 (c)

 	
 any requirement or recommendation made by any insurer or
 classification society or by any competent authority which is not immediately
 complied with;

 
	
  

 	
  

 
	
 (d)

 	
 any arrest or detention of the Ship owned by it, any exercise or
 purported exercise of any lien on that Ship or its Earnings or any
 requisition of that Ship for hire;

 
	
  

 	
  

 
	
 (e)

 	
 any intended dry docking of the Ship owned by it;

 

40

	
  

 	
  

 
	
 (f)

 	
 any Environmental Claim made against that Borrower or in connection
 with the Ship owned by it, or any Environmental Incident;

 
	
  

 	
  

 
	
 (g)

 	
 any claim for breach of the ISM Code or the ISPS Code being made
 against that Borrower, any technical Approved Manager or otherwise in
 connection with the Ship owned by it; or

 
	
  

 	
  

 
	
 (h)

 	
 any other matter, event or incident, actual or threatened, the effect
 of which will or could lead to the ISM Code or the ISPS Code not being complied
 with;

 
	
  

 	
  

 
	
  

 	
 and that Borrower shall keep the Security Trustee advised in writing
 on a regular basis and in such detail as the Security Trustee shall require
 of that Borrower’s, that Approved Manager’s or any other person’s response to
 any of those events or matters.

 
	
  

 	
  

 
	
 14.12.

 	
 Restrictions on
 chartering, appointment of managers etc. Neither
 Borrower shall, in relation to the Ship owned by it:

 
	
  

 	
  

 
	
 (a)

 	
 let that Ship on demise charter for any period;

 
	
  

 	
  

 
	
 (b)

 	
 save for any Charter or Replacement Charter, enter into any time or
 consecutive voyage charter in respect of that Ship for a term which exceeds,
 or which by virtue of any optional extensions may exceed, 13 months;

 
	
  

 	
  

 
	
 (c)

 	
 save for any Charter or Replacement Charter, enter into any charter
 in relation to that Ship under which more than 2 months’ hire (or the
 equivalent) is payable in advance;

 
	
  

 	
  

 
	
 (d)

 	
 save for any Charter or Replacement Charter, charter that Ship
 otherwise than on bona fide arm’s length terms at the time when that Ship is
 fixed;

 
	
  

 	
  

 
	
 (e)

 	
 appoint a manager of that Ship other than an Approved Manager (and
 then provided that that Approved Manager has provided to the Security Trustee
 the undertaking referred to in Schedule 4, Part B, Paragraph 4(a)) nor agree
 to any material alteration to the terms of any Approved Manager’s
 appointment;

 
	
  

 	
  

 
	
 (f)

 	
 de-activate or lay up that Ship; or

 
	
  

 	
  

 
	
 (g)

 	
 put that Ship into the possession of any person for the purpose of
 work being done upon it in an amount exceeding or likely to exceed $5,000,000
 (or the equivalent in any other currency) unless that Borrower has
 established to the reasonable satisfaction of the Agent that that Borrower
 has sufficient reserves to pay for the cost of such work.

 
	
  

 	
  

 
	
 14.13.

 	
 Notice of Mortgage.
 Each Borrower shall keep the relevant Mortgage registered against the Ship
 owned by it as a valid first priority mortgage, carry on board that Ship a
 certified copy of the relevant Mortgage and place and maintain in a
 conspicuous place in the navigation room and the Master’s cabin of that Ship
 a framed printed notice stating that that Ship is mortgaged by that Borrower
 to the Security Trustee.

 
	
  

 	
  

 
	
 14.14.

 	
 Sharing of
 Earnings. Neither Borrower shall enter into any
 agreement or arrangement for the sharing of any Earnings.

 
	
  

 	
  

 
	
 14.15.

 	
 ISPS Code.
 The Borrower shall comply with the ISPS Code and in particular, without
 limitation, shall:

 
	
  

 	
  

 
	
 (a)

 	
 procure that the Ship and the company responsible for the Ship’s
 compliance with the ISPS Code comply with the ISPS Code; and

 
	
  

 	
  

 
	
 (b)

 	
 maintain for the Ship an ISSC; and

 
	
  

 	
  

 
	
 (c)

 	
 notify the Agent immediately in writing of any actual or threatened
 withdrawal, suspension, cancellation or modification of the ISSC.

 

41

	
  

 	
  

 
	
 15

 	
 SECURITY COVER

 
	
  

 	
  

 
	
 15.1.

 	
 Minimum required
 security cover. Clause 15.2 applies if the Agent
 notifies the Borrowers that:

 
	
  

 	
  

 
	
 (a)

 	
 the aggregate of the market values (determined as provided in Clause
 15.3) of each Ship subject to a Mortgage; plus

 
	
  

 	
  

 
	
 (b)

 	
 the net realisable value of any additional security previously
 provided under this Clause 15;

 
	
  

 	
  

 
	
  

 	
 is below 120 per cent. of the Loan.

 
	
  

 	
  

 
	
 15.2.

 	
 Provision of
 additional security; prepayment. If the Agent serves
 a notice on the Borrowers under Clause 15.1, the Borrowers shall, within 1
 month after the date on which the Agent’s notice is served, either:

 
	
  

 	
  

 
	
 (a)

 	
 provide, or ensure that a third party provides, additional security,
 in favour of the Security Trustee (on behalf of the Lenders and the Swap
 Banks), of a type acceptable to the Majority Lenders which, in the opinion of
 the Majority Lenders, has a net realisable value at least equal to the
 shortfall and is documented in such terms as the Agent may, with the
 authorisation of the Majority Lenders, approve or require; or

 
	
  

 	
  

 
	
 (b)

 	
 prepay such part (at least) of the Loan as will eliminate the
 shortfall.

 
	
  

 	
  

 
	
 15.3.

 	
 Valuation of Ships.
 The market value of each Ship shall be determined (i) on delivery of that
 Ship, (ii) on the date each compliance certificate is provided in relation to
 the annual accounts of the Borrowers, (iii) upon request of the Agent (acting
 on the instructions of the Majority Lenders) 6 months after a valuation was
 last submitted and (iv) upon the request of the Agent if the Agent considers
 that an Event of Default has occurred or that there may be a risk that the
 requirements of Clause 15.1 are not then being complied with. The “Fair
 Market Value” of a Ship is that shown by the average
 of 2 valuations each prepared:

 
	
  

 	
  

 
	
 (a)

 	
 as at a date not more than 45 days previously;

 
	
  

 	
  

 
	
 (b)

 	
 by 2 Approved Shipbrokers, with 1 selected by the Agent and 1 selected
 by the Borrower but following an Event of Default which is continuing, with
 both selected by the Agent;

 
	
  

 	
  

 
	
 (c)

 	
 with or without physical inspection of the Ship (as the Agent may
 require);

 
	
  

 	
  

 
	
 (d)

 	
 on the basis of a sale for prompt delivery for cash on normal arm’s
 length commercial terms as between a willing seller and a willing buyer, free
 of any existing charter or other contract of employment;

 
	
  

 	
  

 
	
 (e)

 	
 after deducting the estimated amount of the usual and reasonable
 expenses which would be incurred in connection with the sale.

 
	
  

 	
  

 
	
 15.4.

 	
 Value of additional
 vessel security. The net realisable value of any
 additional security which is provided under Clause 15.2 and which consists of
 a Security Interest over a vessel shall be that shown by a valuation complying
 with the requirements of Clause 15.3.

 
	
  

 	
  

 
	
 15.5.

 	
 Valuations binding.
 Any valuation under Clause 15.2, 15.3 or 15.4 shall be binding and conclusive
 as regards the Borrowers, as shall be any valuation which the Majority
 Lenders make of any additional security which does not consist of or include
 a Security Interest.

 
	
  

 	
  

 
	
 15.6.

 	
 Provision of
 information. The Borrowers shall promptly provide
 the Agent and any shipbroker or expert acting under Clause 15.3 or 15.4 with
 any information which the Agent or the shipbroker or expert may reasonably
 request for the purposes of the valuation; and, if the Borrowers fail to
 provide the information by the date specified in the request, the valuation
 may be made on any basis and assumptions which the shipbroker or the Majority
 Lenders (or the expert appointed by them) consider prudent.

 

42

	
  

 	
  

 
	
 15.7.

 	
 Payment of
 valuation expenses. Without prejudice to the
 generality of the Borrowers’ obligations under Clauses 20.2, 20.3 and 21.3,
 the Borrowers shall, on demand, pay the Agent the amount of the fees and
 expenses of any shipbroker or expert instructed by the Agent under this
 Clause (no more than twice per year per Ship unless an Event of Default has
 occurred which is continuing) and all legal and other expenses incurred by any
 Creditor Party in connection with any matter arising out of this Clause.

 
	
  

 	
  

 
	
 15.8.

 	
 Application of
 prepayment. Clause 8 shall apply in relation to any
 prepayment pursuant to Clause 15.2(b).

 
	
  

 	
  

 
	
 16

 	
 PAYMENTS AND CALCULATIONS

 
	
  

 	
  

 
	
 16.1.

 	
 Currency and method
 of payments. All payments to be made by the Lenders
 or by any Borrower under a Finance Document shall be made to the Agent or to
 the Security Trustee, in the case of an amount payable to it:

 
	
  

 	
  

 
	
 (a)

 	
 by not later than 11.00 a.m. (New York City time) on the due date;

 
	
  

 	
  

 
	
 (b)

 	
 in same day Dollar funds settled through the New York Clearing House
 Interbank Payments System (or in such other Dollar funds and/or settled in
 such other manner as the Agent shall specify as being customary at the time
 for the settlement of international transactions of the type contemplated by
 this Agreement);

 
	
  

 	
  

 
	
 (c)

 	
 in the case of an amount payable by a Lender to the Agent or by any
 Borrower to the Agent or any Lender, to such account with such bank as the
 Agent may from time to time notify to the Borrowers and the other Creditor
 Parties; and

 
	
  

 	
  

 
	
 (d)

 	
 in the case of an amount payable to the Security Trustee, to such
 account as it may from time to time notify to the Borrowers and the other
 Creditor Parties.

 
	
  

 	
  

 
	
 16.2.

 	
 Payment on
 non-Business Day. If any payment by any Borrower
 under a Finance Document would otherwise fall due on a day which is not a
 Business Day:

 
	
  

 	
  

 
	
 (a)

 	
 the due date shall be extended to the next succeeding Business Day;
 or

 
	
  

 	
  

 
	
 (b)

 	
 if the next succeeding Business Day falls in the next calendar month,
 the due date shall be brought forward to the immediately preceding Business
 Day;

 
	
  

 	
  

 
	
  

 	
 and interest shall be payable during any extension under paragraph
 (a) at the rate payable on the original due date.

 
	
  

 	
  

 
	
 16.3.

 	
 Basis for calculation
 of periodic payments. All interest and commitment
 fee and any other payments under any Finance Document which are of an annual
 or periodic nature shall accrue from day to day and shall be calculated on
 the basis of the actual number of days elapsed and a 360 day year.

 
	
  

 	
  

 
	
 16.4.

 	
 Distribution of
 payments to Creditor Parties. Subject to Clauses
 16.5, 16.6 and 16.7:

 
	
  

 	
  

 
	
 (a)

 	
 any amount received by the Agent under a Finance Document for
 distribution or remittance to a Lender, a Swap Counterparty or the Security
 Trustee shall be made available by the Agent to that Lender, that Swap
 Counterparty or, as the case may be, the Security Trustee by payment, with
 funds having the same value as the funds received, to such account as the
 Lender, the Swap Counterparty or, as the case may be, the Security Trustee
 may have notified to the Agent not less than 5 Business Days previously; and

 
	
  

 	
  

 
	
 (b)

 	
 amounts to be applied in satisfying amounts of a particular category
 which are due to the Lenders and/or the Swap Counterparties generally shall
 be distributed by the Agent to each Lender and each Swap Counterparty pro
 rata to the amount in that category which is due to it.

 

43

	
  

 	
  

 
	
 16.5.

 	
 Permitted
 deductions by Agent. Notwithstanding any other
 provision of this Agreement or any other Finance Document, the Agent may,
 before making an amount available to a Lender or a Swap Counterparty, deduct
 and withhold from that amount any sum which is then due and payable to the
 Agent from that Lender or that Swap Counterparty under any Finance Document
 or any sum which the Agent is then entitled under any Finance Document to
 require that Lender or that Swap Counterparty to pay on demand.

 
	
  

 	
  

 
	
 16.6.

 	
 Agent only obliged
 to pay when monies received. Notwithstanding any
 other provision of this Agreement or any other Finance Document, the Agent
 shall not be obliged to make available to any Borrower, any Lender or any
 Swap Counterparty any sum which the Agent is expecting to receive for
 remittance or distribution to that Borrower or that Lender or that Swap
 Counterparty until the Agent has satisfied itself that it has received that
 sum.

 
	
  

 	
  

 
	
 16.7.

 	
 Refund to Agent of
 monies not received. If and to the extent that the
 Agent makes available a sum to a Borrower, or a Lender or a Swap
 Counterparty, without first having received that sum, the Borrower or the
 Lender concerned or (as the case may be) the Swap Counterparty concerned
 shall, on demand:

 
	
  

 	
  

 
	
 (a)

 	
 refund the sum in full to the Agent; and

 
	
  

 	
  

 
	
 (b)

 	
 pay to the Agent the amount (as certified by the Agent) which will
 indemnify the Agent against any funding or other loss, liability or expense
 incurred by the Agent as a result of making the sum available before
 receiving it.

 
	
  

 	
  

 
	
 16.8.

 	
 Agent may assume
 receipt. Clause 16.7 shall not affect any claim
 which the Agent has under the law of restitution, and applies irrespective of
 whether the Agent had any form of notice that it had not received the sum
 which it made available.

 
	
  

 	
  

 
	
 16.9.

 	
 Creditor Party
 accounts. Each Creditor Party shall maintain
 accounts showing the amounts owing to it by the Borrowers and each Security
 Party under the Finance Documents and all payments in respect of those
 amounts made by the Borrowers and any Security Party.

 
	
  

 	
  

 
	
 16.10.

 	
 Agent’s memorandum
 account. The Agent shall maintain a memorandum account
 showing the amounts advanced by the Lenders and all other sums owing to the
 Agent, the Security Trustee and each Lender from the Borrowers and each
 Security Party under the Finance Documents and all payments in respect of
 those amounts made by the Borrowers and any Security Party.

 
	
  

 	
  

 
	
 16.11.

 	
 Accounts prima
 facie evidence. If any accounts maintained under
 Clauses 16.9 and 16.10 show an amount to be owing by the Borrowers or a
 Security Party to a Creditor Party, those accounts shall be prima facie evidence
 that that amount is owing to that Creditor Party.

 
	
  

 	
  

 
	
 17

 	
 APPLICATION OF RECEIPTS

 
	
  

 	
  

 
	
 17.1.

 	
 Normal order of
 application. Except as any Finance Document may
 otherwise provide, any sums which are received or recovered by any Creditor
 Party under or by virtue of any Finance Document after service of notice on
 the Borrowers under Clause 19.2(a)(i) or (ii) shall be applied:

 
	
  

 	
  

 
	
 (a)

 	
 FIRST: in or towards payment pro rata of any unpaid fees, costs and
 expenses of the Agent and the Security Trustee under the Finance Documents;

 
	
  

 	
  

 
	
 (b)

 	
 SECONDLY: in or towards payment pro rata of any accrued interest or
 commission due but unpaid under this Agreement;

 
	
  

 	
  

 
	
 (c)

 	
 THIRDLY: in or towards payment pro rata of any principal due but
 unpaid under this Agreement;

 
	
  

 	
  

 
	
 (d)

 	
 FOURTHLY: in or towards payment pro rata of any other amounts due but
 unpaid under any Finance Document;

 

44

	
  

 	
  

 
	
 (e)

 	
 FIFTHLY: in retention of an amount equal to any amount not then due
 and payable under any Finance Document but which the Agent, by notice to the
 Borrowers, the Security Parties and the other Creditor Parties, states in its
 opinion will or may become due and payable in the future and, upon those
 amounts becoming due and payable, in or towards satisfaction of them in
 accordance with the provisions of Clause 17.1(a), 17.1(b), 17.1(c) and
 17.1(d);

 
	
  

 	
  

 
	
 (f)

 	
 SIXTHLY: in or towards satisfaction pro rata of any amount then due
 and payable under any Master Agreement which relates to a Designated
 Transaction;

 
	
  

 	
  

 
	
 (g)

 	
 SEVENTHLY: in retention of an amount equal to any amount not then due
 and payable under any Master Agreement which relates to a Designated
 Transactions but which the Agent, by notice to the Borrowers, the Security
 Parties and the other Creditor Parties, states in its opinion will or may
 become due and payable in the future and, upon those amounts becoming due and
 payable, in or towards satisfaction of them in accordance with the provisions
 of Clause 17.1(f); and

 
	
  

 	
  

 
	
 (h)

 	
 EIGHTHLY: any surplus shall be paid to the Borrowers or to any other
 person appearing to be entitled to it.

 
	
  

 	
  

 
	
 17.2.

 	
 Variation of order
 of application. The Agent may, with the
 authorisation of the Majority Lenders and the Swap Counterparties, by notice
 to the Borrowers, the Security Parties and the other Creditor Parties provide
 for a different manner of application from that set out in Clause 17.1 either
 as regards a specified sum or sums or as regards sums in a specified category
 or categories.

 
	
  

 	
  

 
	
 17.3.

 	
 Notice of variation
 of order of application. The Agent may give notices
 under Clause 17.2 from time to time; and such a notice may be stated to apply
 not only to sums which may be received or recovered in the future, but also
 to any sum which has been received or recovered on or after the third
 Business Day before the date on which the notice is served.

 
	
  

 	
  

 
	
 17.4.

 	
 Appropriation
 rights overridden. This Clause 17 and any notice
 which the Agent gives under Clause 17.2 shall override any right of
 appropriation possessed, and any appropriation made, by either Borrower or
 any Security Party.

 
	
  

 	
  

 
	
 18 

 	
 APPLICATION OF EARNINGS 

 
	
  

 	
  

 
	
 18.1.

 	
 Payment of
 Earnings. Each Borrower undertakes with each
 Creditor Party to ensure that, throughout the Security Period (and subject
 only to the provisions of the relevant General Assignment), all the Earnings
 of the Ship owned by it are paid to the Earnings Account for that Ship. The
 Earnings shall, subject to Clause 11.24, be available to Borrowers provided
 that no Event of Default has occurred and is continuing.

 
	
  

 	
  

 
	
 18.2.

 	
 Location of
 accounts. Each Borrower shall promptly:

 
	
  

 	
  

 
	
 (a)

 	
 comply with any requirement of the Agent as to the location or
 re-location of the Earnings Accounts (or any of them);

 
	
  

 	
  

 
	
 (b)

 	
 execute any documents which the Agent specifies to create or maintain
 in favour of the Security Trustee a Security Interest over (and/or rights of
 set-off, consolidation or other rights in relation to) the Earnings Accounts
 (or any of them).

 
	
  

 	
  

 
	
 18.3.

 	
 Debits for expenses
 etc. The Agent shall be entitled (but not obliged)
 from time to time to debit any Earnings Account without prior notice in order
 to discharge any amount due and payable under Clause 20 or 21 to a Creditor
 Party or payment of which any Creditor Party has become entitled to demand
 under Clause 20 or 21.

 
	
  

 	
  

 
	
 19

 	
 EVENTS OF DEFAULT

 
	
  

 	
  

 
	
 19.1.

 	
 Events of Default.
 An Event of Default occurs if:

 

45

	
  

 	
  

 
	
 (a)

 	
 either Borrower or any Security Party fails to pay when due or (if so
 payable) on demand any sum payable under a Finance Document or under any
 document relating to a Finance Document; or

 
	
  

 	
  

 
	
 (b)

 	
 any breach occurs of:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Clauses 9.2, 9.3, 11.2, 11.3, 11.4, 11.25(b), 12.2, 12.3, 12.4 or
 15.2 of this Agreement; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 clauses 11.15 and 11.16 of the Counter-Guarantee from
 Counter-Guarantor 2; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 clauses 11.13 and 11.15 of the Guarantee from GasLog; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 clause 11.13 and 11.14 of the Counter-Guarantee from
 Counter-Guarantor 1; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 clause 11.12 of the Guarantee from GasLog Carriers; or

 

	
  

 	
  

 
	
 (c)

 	
 any breach by either Borrower or any Security Party occurs of any
 provision of a Finance Document (other than a breach covered by paragraphs
 (a) or (b)) if, in the opinion of the Majority Lenders, such default is
 capable of remedy, and such default continues unremedied 10 Business Days
 after written notice from the Agent requesting action to remedy the same; or

 
	
  

 	
  

 
	
 (d)

 	
 (subject to any applicable grace period specified in the Finance
 Document) any breach by any Borrower or any Security Party occurs of any
 provision of a Finance Document (other than a breach covered by paragraphs
 (a), (b) or (c)); or

 
	
  

 	
  

 
	
 (e)

 	
 any representation, warranty or statement made by, or by an officer
 of, any Borrower or a Security Party in a Finance Document or in a Drawdown
 Notice or any other notice or document relating to a Finance Document is
 untrue or misleading when it is made; or

 
	
  

 	
  

 
	
 (f)

 	
 any of the following occurs in relation to any Financial Indebtedness
 of a Relevant Person in respect of a sum of; or sums aggregating, $1,000,000
 or more (in the case of a Relevant Person other than a Guarantor) or $5,000,000
 or more (in the case of a Guarantor) or the equivalent in another currency:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any Financial Indebtedness of a Relevant Person is not paid when due;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any Financial Indebtedness of a Relevant Person becomes due and
 payable or capable of being declared due and payable prior to its stated
 maturity date as a consequence of any event of default; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 a lease, hire purchase agreement or charter creating any Financial
 Indebtedness of a Relevant Person is terminated by the lessor or owner or
 becomes capable of being terminated as a consequence of any termination
 event; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 any overdraft, loan, note issuance, acceptance credit, letter of
 credit, guarantee, foreign exchange or other facility, or any swap or other
 derivative contract or transaction, relating to any Financial Indebtedness of
 a Relevant Person ceases to be available or becomes capable of being
 terminated as a result of any event of default, or cash cover is required, or
 becomes capable of being required, in respect of such a facility as a result
 of any event of default; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 any Security Interest securing any Financial Indebtedness of a
 Relevant Person becomes enforceable;

 

	
  

 	
  

 	
  

 
	
 (g)

 	
 any of the
 following occurs in relation to a Relevant Person:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 a Relevant
 Person becomes unable to pay its debts as they fall due; or

 

46

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any assets of a Relevant Person are subject to any form of execution,
 attachment, arrest, sequestration or distress in respect of a sum of, or sums
 aggregating, $1,000,000 or more (in the case of a Relevant Person other than
 a Guarantor) or $5,000,000 or more (in the case of a Guarantor) or in either
 case the equivalent in another currency; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 any administrative or other receiver is appointed over any asset of a
 Relevant Person; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 an administrator is appointed (whether by the court or otherwise) in
 respect of a Relevant Person; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 any formal declaration of bankruptcy or any formal statement to the
 effect that a Relevant Person is insolvent or likely to become insolvent is
 made by a Relevant Person or by the directors of a Relevant Person or, in any
 proceedings, by a lawyer acting for a Relevant Person; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 a provisional liquidator is appointed in respect of a Relevant
 Person, a winding up order is made in relation to a Relevant Person or a
 winding up resolution is passed by a Relevant Person; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 a resolution is passed, an administration notice is given or filed,
 an application or petition to a court is made or presented or any other step
 is taken by (aa) a Relevant Person, (bb) the members or directors of a
 Relevant Person, (cc) a holder of Security Interests which together relate to
 all or substantially all of the assets of a Relevant Person, or (dd) a
 government minister or public or regulatory authority for or with a view to
 the winding up of that or another Relevant Person or the appointment of a
 provisional liquidator or administrator in respect of that or another
 Relevant Person, or that or another Relevant Person ceasing or suspending
 business operations or payments to creditors, save that this paragraph does
 not apply to a fully solvent winding up of a Relevant Person other than the
 Borrowers or the Guarantors which is, or is to be, effected for the purposes
 of an amalgamation or reconstruction previously approved by the Majority
 Lenders and effected not later than 3 months after the commencement of the
 winding up; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (viii)

 	
 an administration notice is given or filed, an application or
 petition to a court is made or presented or any other step is taken by a
 creditor of a Relevant Person (other than a holder of Security Interests
 which together relate to all or substantially all of the assets of a Relevant
 Person) for the winding up of a Relevant Person or the appointment of a
 provisional liquidator or administrator in respect of a Relevant Person,
 unless the proposed winding up, appointment of a provisional liquidator or
 administration is being contested in good faith, on substantial grounds and
 not with a view to some other insolvency law procedure being implemented
 instead and either (aa) the application or petition is dismissed or withdrawn
 within 30 days of being made or presented, or (bb) within 30 days of the
 administration notice being given or filed, or the other relevant steps being
 taken, other action is taken which will ensure that there will be no
 administration and (in both cases (aa) or (bb)) the Relevant Person will
 continue to carry on business in the ordinary way and without being the
 subject of any actual, interim or pending insolvency law procedure; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ix)

 	
 a Relevant Person or its directors take any steps (whether by making
 or presenting an application or petition to a court, or submitting or
 presenting a document setting out a proposal or proposed terms, or otherwise)
 with a view to obtaining, in relation to that or another Relevant Person, any
 form of moratorium, suspension or deferral of payments, reorganisation of
 debt (or certain debt) or arrangement with all or a substantial proportion
 (by number or value) of creditors or of any class of them or any such
 moratorium, suspension or deferral of payments, reorganisation or arrangement
 is effected by court order, by the filing of documents with a court, by means
 of a contract or in any other way at all; or

 

47

	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 any meeting of the members or directors, or of any committee of the
 board or senior management, of a Relevant Person is held or summoned for the
 purpose of considering a resolution or proposal to authorise or take any
 action of a type described in paragraphs (iv) to (ix) or a step preparatory
 to such action, or (with or without such a meeting) the members, directors or
 such a committee resolve or agree that such an action or step should be taken
 or should be taken if certain conditions materialise or fail to materialise;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (xi)

 	
 in a country other than England, any event occurs, any proceedings
 are opened or commenced or any step is taken which, in the opinion of the
 Majority Lenders is similar to any of the foregoing; or

 

	
  

 	
  

 
	
 (h)

 	
 any Borrower ceases or suspends carrying on its business or a part of
 its business which, in the reasonable opinion of the Majority Lenders, is
 material in the context of this Agreement; or

 
	
  

 	
  

 
	
 (i)

 	
 it becomes unlawful or impossible:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 for any Borrower or any Security Party to discharge any liability
 under a Finance Document or to comply with any other obligation which the
 Majority Lenders consider material under a Finance Document; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 for the Agent, the Security Trustee, the Lenders or the Swap Banks to
 exercise or enforce any right under, or to enforce any Security Interest
 created by, a Finance Document; or

 

	
  

 	
  

 
	
 (j)

 	
 any official consent necessary to enable any Borrower to own, operate
 or charter the Ship owned by it or to enable the Borrowers or any Security
 Party to comply with any provision which the Majority Lenders reasonably
 consider material of a Finance Document or either Shipbuilding Contract is
 not granted, expires without being renewed, is revoked or becomes liable to
 revocation or any condition of such a consent is not fulfilled; or

 
	
  

 	
  

 
	
 (k)

 	
 any provision which the Majority Lenders consider material of a
 Finance Document proves to have been or becomes invalid or unenforceable, or
 a Security Interest created by a Finance Document proves to have been or
 becomes invalid or unenforceable or such a Security Interest proves to have
 ranked after, or loses its priority to, another Security Interest or any
 other third party claim or interest; or

 
	
  

 	
  

 
	
 (l)

 	
 the security constituted by a Finance Document is in any way
 imperilled or in jeopardy; or

 
	
  

 	
  

 
	
 (m)

 	
 an Event of Default (as defined in section 14 of a Master Agreement)
 occurs which is continuing; or

 
	
  

 	
  

 
	
 (n)

 	
 a Master Agreement is terminated, cancelled, suspended, rescinded or
 revoked or otherwise ceases to remain in full force and effect for any reason
 except with the consent of the Agent, acting with the authorisation of the
 Majority Lenders; or

 
	
  

 	
  

 
	
 (o)

 	
 without the prior written consent of the Agent (acting with the
 authorisation of the Majority Lenders), the Holding Company ceases to hold
 the legal title and beneficial ownership of:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 on or prior to the date of a Qualified IPO, 75 per cent. of the
 issued and allotted shares of GasLog;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 following the date of a Qualified IPO and on or before the first
 anniversary of a Qualified IPO, 30 per cent. of the issued and allotted
 shares of GasLog;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 following the first anniversary and on or before the second
 anniversary of a Qualified IPO, 25 per cent. of the issued and allotted
 shares of GasLog;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 following the second anniversary and on or before the third
 anniversary of a Qualified IPO, 20 per cent, of the issued and allotted
 shares of GasLog; or

 

48

	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 following the third anniversary of a Qualified IPO, 15 per cent. of
 the issued and allotted shares of GasLog; or

 

	
  

 	
  

 
	
 (p)

 	
 there occurs or develops a change in the financial position, state of
 affairs or prospects of the Borrowers or any Security Party since 31 December
 2010 which, in the reasonable opinion of the Majority Lenders, has a material
 adverse effect on the Borrowers’ or any Security Party’s ability to discharge
 its liabilities under the Finance Documents as they fall due.

 
	
  

 	
  

 
	
 19.2.

 	
 Actions following
 an Event of Default. On, or at any time after, the
 occurrence of an Event of Default which is continuing:

 
	
  

 	
  

 
	
 (a)

 	
 the Agent may, and if so instructed by the Majority Lenders, the
 Agent shall:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 serve on the Borrowers a notice stating that the Commitments and all
 other obligations of each Lender to the Borrowers under this Agreement are
 terminated; and/or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 serve on the Borrowers a notice stating that the Loan, all accrued
 interest and all other amounts accrued or owing under this Agreement are
 immediately due and payable or are due and payable on demand; and/or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 take any other action which, as a result of the Event of Default or
 any notice served under paragraph (i) or (ii), the Agent and/or the Lenders
 are entitled to take under any Finance Document or any applicable law; and/or

 

	
  

 	
  

 
	
 (b)

 	
 the Security Trustee may, and if so instructed by the Agent, acting
 with the authorization of the Majority Lenders, the Security Trustee shall
 take any action which, as a result of the Event of Default or any notice
 served under paragraph (a) (i) or (ii), the Security Trustee, the Agent, the
 Lenders and/or the Swap Counterparties are entitled to take under any Finance
 Document or any applicable law.

 
	
  

 	
  

 
	
 19.3.

 	
 Termination of
 Commitments. On the service of a notice under Clause
 19.2(a)(i), the Commitments and all other obligations of each Lender to
 the Borrowers under this Agreement shall terminate.

 
	
  

 	
  

 
	
 19.4.

 	
 Acceleration of
 Loan. On the service of a notice under Clause
 19.2(a)(ii), the Loan, all accrued interest and all other amounts accrued or
 owing from the Borrowers or any Security Party under this Agreement and every
 other Finance Document shall become immediately due and payable or, as the
 case may be, payable on demand.

 
	
  

 	
  

 
	
 19.5.

 	
 Multiple notices;
 action without notice. The Agent may serve notices
 under Clauses 19.2(a)(i) or (ii) simultaneously or on different dates and it
 and/or the Security Trustee may take any action referred to in Clause 19.2 if
 no such notice is served or simultaneously with or at any time after the
 service of both or either of such notices.

 
	
  

 	
  

 
	
 19.6.

 	
 Notification of
 Creditor Parties and Security Parties. The Agent
 shall send to each Lender, each Swap Counterparty, the Security Trustee and
 each Security Party a copy or the text of any notice which the Agent serves
 on the Borrowers under Clause 19.2; but the notice shall become effective
 when it is served on the Borrowers, and no failure or delay by the Agent to
 send a copy or the text of the notice to any other person shall invalidate
 the notice or provide the Borrowers or any Security Party with any form of
 claim or defence.

 
	
  

 	
  

 
	
 19.7.

 	
 Creditor Parties’
 rights unimpaired. Nothing in this Clause shall be
 taken to impair or restrict the exercise of any right given to individual
 Lenders or Swap Counterparties under a Finance Document, a Master Agreement
 or the general law; and, in particular, this Clause is without prejudice to
 Clause 3.1.

 
	
  

 	
  

 
	
 19.8.

 	
 Exclusion of
 Creditor Party liability. No Creditor Party, and no
 receiver or manager appointed by the Security Trustee, shall have any
 liability to the Borrowers or a Security Party:

 

49

	
  

 	
  

 
	
 (a)

 	
 for any loss caused by an exercise of rights under, or enforcement of
 a Security Interest created by, a Finance Document or by any failure or delay
 to exercise such a right or to enforce such a Security Interest; or

 
	
  

 	
  

 
	
 (b)

 	
 as mortgagee in possession or otherwise, for any income or principal
 amount which might have been produced by or realised from any asset comprised
 in such a Security Interest or for any reduction (however caused) in the
 value of such an asset;

 
	
  

 	
  

 
	
  

 	
 except that this does not exempt a Creditor Party or a receiver or
 manager from liability for losses shown to have been directly and mainly
 caused by the dishonesty or the wilful misconduct of such Creditor Party’s
 own officers and employees or (as the case may be) such receiver’s or
 manager’s own partners or employees.

 
	
  

 	
  

 
	
 19.9.

 	
 Relevant Persons.
 In this Clause 19 “Relevant Persons” means the Borrowers,
 the Security Parties and each technical Approved Manager and, in the
 singular, means any of them.

 
	
  

 	
  

 
	
 19.10.

 	
 Interpretation.
 In Clause 19.1(f) references to an event of default or a termination event
 include any event, howsoever described, which is similar to an event of
 default in a facility agreement or a termination event in a finance lease;
 and in Clause 19.1(g) “petition” includes an application.

 
	
  

 	
  

 
	
 19.11.

 	
 Position of Swap
 Counterparties. Prior to such time as the Loan has
 been repaid in full, neither the Agent nor the Security Trustee shall be
 obliged, in connection with any action taken or proposed to be taken under or
 pursuant to the foregoing provisions of this Clause 19, to have any regard to
 the requirements of a Swap Counterparty except to the extent that such Swap
 Counterparty is also a Lender.

 
	
  

 	
  

 
	
 20

 	
 FEES AND EXPENSES

 
	
  

 	
  

 
	
 20.1.

 	
 Arrangement,
 commitment, agency fees. The Borrowers shall pay to
 the Agent:

 
	
  

 	
  

 
	
 (a)

 	
 on the date of this Agreement, a non-refundable arrangement fee and a
 non-refundable structuring fee each in an amount previously agreed in writing
 between the Agent and GasLog, for distribution among the Lenders and the Lead
 Arrangers in the proportions agreed by the Agent and the Lenders;

 
	
  

 	
  

 
	
 (b)

 	
 quarterly in arrears and on each Drawdown Date during the period from
 (and including) 10 August 2011 to the earlier of (i) the final Drawdown Date
 and (ii) the end of the Availability Period and on the last day of that
 period, for the account of the Lenders, a commitment fee at the rate of
 0,7875 per cent. per annum on the amount of the Total Commitments less the
 amount of the Loan, for distribution among the Lenders pro rata to their
 Commitments; and

 
	
  

 	
  

 
	
 (c)

 	
 on the date of this Agreement and on each anniversary thereof during
 the Security Period, an annual agency fee of an amount previously agreed in
 writing between the Agent and GasLog.

 
	
  

 	
  

 
	
 20.2.

 	
 Costs of
 negotiation, preparation etc. The Borrowers shall
 pay to the Agent on its demand the amount of all expenses incurred by the
 Agent or the Security Trustee in connection with the negotiation,
 preparation, execution or registration of any Finance Document
 or any related document or with any transaction contemplated by a Finance
 Document or a related document.

 
	
  

 	
  

 
	
 20.3.

 	
 Costs of
 variations, amendments, enforcement etc. The
 Borrowers shall pay to the Agent, on the Agent’s demand, for the account of
 the Creditor Party concerned the amount of all expenses (reasonably in the
 case of (a), (b) and (c) below) incurred by a Creditor Party in connection
 with:

 
	
  

 	
  

 
	
 (a)

 	
 any amendment or supplement to a Finance Document, or any proposal
 for such an amendment to be made;

 

50

	
  

 	
  

 
	
 (b)

 	
 any consent or waiver by the Lenders, the Swap Banks, the Majority
 Lenders or the Creditor Party concerned under or in connection with a Finance
 Document, or any request for such a consent or waiver;

 
	
  

 	
  

 
	
 (c)

 	
 the valuation of any security provided or offered under Clause 15 or
 any other matter relating to such security; or

 
	
  

 	
  

 
	
 (d)

 	
 any step taken by the Creditor Party concerned with a view to the
 protection, exercise or enforcement of any right or Security Interest created
 by a Finance Document or for any similar purpose.

 
	
  

 	
  

 
	
  

 	
 There shall be recoverable under paragraph (d) the full amount of all
 legal expenses, whether or not such as would be allowed under rules of court
 or any taxation or other procedure carried out under such rules.

 
	
  

 	
  

 
	
 20.4.

 	
 Documentary taxes.
 The Borrowers shall promptly pay any tax payable on or by reference to any
 Finance Document, and shall, on the Agent’s demand, fully indemnify each
 Creditor Party against any claims, expenses, liabilities and losses resulting
 from any failure or delay by the Borrowers to pay such a tax.

 
	
  

 	
  

 
	
 20.5.

 	
 Financial Services
 Authority fees. The Borrowers shall pay to the
 Agent, on the Agent’s demand, for the account of the Lender concerned the
 amounts which the Agent from time to time notifies the Borrowers that a
 Lender has notified the Agent to be necessary to compensate it for the cost
 attributable to its Contribution resulting from the imposition from time to
 time under or pursuant to the Bank of England Act 1998 and/or by the Bank of
 England and/or by the Financial Services Authority (or other United Kingdom
 governmental authorities or agencies) of a requirement to pay fees to the
 Financial Services Authority calculated by reference to liabilities used to fund
 its Contribution.

 
	
  

 	
  

 
	
 20.6.

 	
 Certification of
 amounts. A notice which is signed by 2 officers of a
 Creditor Party, which states that a specified amount, or aggregate amount, is
 due to that Creditor Party under this Clause 20 and which indicates the matters
 in respect of which the amount, or aggregate amount, is due shall be prima
 facie evidence that the amount, or aggregate amount, is due.

 
	
  

 	
  

 
	
 21 

 	
 INDEMNITIES 

 
	
  

 	
  

 
	
 21.1.

 	
 Indemnities
 regarding borrowing and repayment of Loan. The
 Borrowers shall fully indemnify the Agent and each Lender on the Agent’s
 demand and the Security Trustee on its demand in respect of all claims,
 expenses, liabilities and losses which are made or brought against or
 incurred by that Creditor Party, or which that Creditor Party reasonably and
 with due diligence estimates that it will incur, as a result of or in
 connection with:

 
	
  

 	
  

 
	
 (a)

 	
 an Advance not being borrowed on the date specified in the Drawdown
 Notice for any reason other than a default by the Lender claiming the
 indemnity;

 
	
  

 	
  

 
	
 (b)

 	
 the receipt or recovery of all or any part of the Loan or an overdue
 sum otherwise than on the last day of an Interest Period or other relevant
 period;

 
	
  

 	
  

 
	
 (c)

 	
 any failure (for whatever reason) by the Borrowers to make payment of
 any amount due under a Finance Document on the due date or, if so payable, on
 demand (after giving credit for any default interest paid by the Borrowers on
 the amount concerned under Clause 7);

 
	
  

 	
  

 
	
 (d)

 	
 the occurrence and/or continuance of an Event of Default or a
 Potential Event of Default and/or the acceleration of repayment of the Loan
 under Clause 19;

 
	
  

 	
  

 
	
  

 	
 and in respect of any tax (other than tax on its overall net income)
 for which a Creditor Party is liable in connection with any amount paid or
 payable to that Creditor Party (whether for its own account or otherwise)
 under any Finance Document.

 

51

	
  

 	
  

 
	
 21.2.

 	
 Breakage costs.
 Without limiting its generality, Clause 21.1 covers any Break Costs or claim,
 expense, liability or loss including a loss of prospective profit, incurred
 by a Lender:

 
	
  

 	
  

 
	
 (a)

 	
 in liquidating or employing deposits from third parties acquired or
 arranged to fund or maintain all or any part of its Contribution and/or any
 overdue amount (or an aggregate amount which includes its Contribution or any
 overdue amount); and

 
	
  

 	
  

 
	
 (b)

 	
 in terminating, or otherwise in connection with, any interest and/or
 currency swap or any other transaction entered into (whether with another
 legal entity or with another office or department of the Lender concerned) to
 hedge any exposure arising under this Agreement or that part which the Lender
 concerned determines is fairly attributable to this Agreement of the amount
 of the liabilities, expenses or losses (including losses of prospective
 profits) incurred by it in terminating, or otherwise in connection with, a
 number of transactions of which this Agreement is one.

 
	
  

 	
  

 
	
 21.3.

 	
 Miscellaneous
 indemnities. The Borrowers shall fully indemnify
 each Creditor Party severally on their respective demands in respect of all
 claims, expenses, liabilities and losses which may be made or brought against
 or incurred by a Creditor Party, in any country, as a result of or in
 connection with:

 
	
  

 	
  

 
	
 (a)

 	
 any action taken, or omitted or neglected to be taken, under or in
 connection with any Finance Document by the Agent, the Security Trustee or
 any other Creditor Party or by any receiver appointed under a Finance
 Document; or

 
	
  

 	
  

 
	
 (b)

 	
 any other Pertinent Matter;

 
	
  

 	
  

 
	
  

 	
 other than claims, expenses, liabilities and losses which are shown
 to have been caused by the dishonesty or wilful misconduct of the officers or
 employees of the Creditor Party concerned.

 
	
  

 	
  

 
	
  

 	
 Without prejudice to its generality, this Clause 21.3 covers any
 claims, expenses, liabilities and losses which arise, or are asserted, under or
 in connection with any law relating to safety at sea, the ISM Code, the ISPS
 Code or any Environmental Law.

 
	
  

 	
  

 
	
 21.4.

 	
 Currency indemnity.
 If any sum due from any Borrower or any Security Party to a Creditor Party
 under a Finance Document or under any order or judgment relating to a Finance
 Document has to be converted from the currency in which the Finance Document
 provided for the sum to be paid (the “Contractual Currency”) into another
 currency (the “Payment Currency”) for the purpose of:

 
	
  

 	
  

 
	
 (a)

 	
 making or lodging any claim or proof against the Borrowers or any
 Security Party, whether in its liquidation, any arrangement involving it or
 otherwise; or

 
	
  

 	
  

 
	
 (b)

 	
 obtaining an order or judgment from any court or other tribunal; or

 
	
  

 	
  

 
	
 (c)

 	
 enforcing any such order or judgment;

 
	
  

 	
  

 
	
  

 	
 the Borrowers shall indemnify the Creditor Party concerned against
 the loss arising when the amount of the payment actually received by that
 Creditor Party is converted at the available rate of exchange into the
 Contractual Currency.

 
	
  

 	
  

 
	
  

 	
 In this Clause 21.4, the “available rate of exchange” means the
 rate at which the Creditor Party concerned is able at the opening of business
 (London time) on the Business Day after it receives the sum concerned to
 purchase the Contractual Currency with the Payment Currency.

 
	
  

 	
  

 
	
  

 	
 This Clause 21.4 creates a separate liability of the Borrowers which
 is distinct from its other liabilities under the Finance Documents and which
 shall not be merged in any judgment or order relating to those other
 liabilities.

 

52

	
  

 	
  

 
	
 21.5.

 	
 Application to
 Master Agreements. For the avoidance of doubt,
 Clause 21.4 does not apply in respect of sums due from a Borrower to a Swap
 Counterparty under or in connection with a Master Agreement as to which sums
 the provisions of section 8 (Contractual Currency) of that Master Agreement
 shall apply.

 
	
  

 	
  

 
	
 21.6.

 	
 Certification of
 amounts. A notice which is signed by 2 officers of a
 Creditor Party, which states that a specified amount, or aggregate amount, is
 due to that Creditor Party under this Clause 21 and which indicates the
 matters in respect of which the amount, or aggregate amount, is due shall be
 prima facie evidence that the amount, or aggregate amount, is due.

 
	
  

 	
  

 
	
 21.7.

 	
 Sums deemed due to
 a Lender. For the purposes of this Clause 21, a sum
 payable by the Borrowers to the Agent or the Security Trustee for
 distribution to a Lender shall be treated as a sum due to that Lender.

 
	
  

 	
  

 
	
 22 

 	
 NO SET-OFF OR TAX DEDUCTION 

 
	
  

 	
  

 
	
 22.1.

 	
 No deductions.
 All amounts due from the Borrowers under a Finance Document shall be paid:

 
	
  

 	
  

 
	
 (a)

 	
 without any form of set-off, cross-claim or condition; and

 
	
  

 	
  

 
	
 (b)

 	
 free and clear of any tax deduction except a tax deduction which a
 Borrower is required by law to make.

 
	
  

 	
  

 
	
 22.2.

 	
 Grossing-up for
 taxes. If a Borrower is required by law to make a
 tax deduction from any payment:

 
	
  

 	
  

 
	
 (a)

 	
 that Borrower shall notify the Agent as soon as it becomes aware of
 the requirement;

 
	
  

 	
  

 
	
 (b)

 	
 that Borrower shall pay the tax deducted to the appropriate taxation
 authority promptly, and in any event before any fine or penalty arises;

 
	
  

 	
  

 
	
 (c)

 	
 the amount due in respect of the payment shall be increased by the
 amount necessary to ensure that each Creditor Party receives and retains
 (free from any liability relating to the tax deduction) a net amount which,
 after the tax deduction, is equal to the full amount which it would otherwise
 have received.

 
	
  

 	
  

 
	
 22.3.

 	
 Evidence of payment
 of taxes. Within 1 month after making any tax
 deduction, the Borrower concerned shall deliver to the Agent documentary
 evidence satisfactory to the Agent that the tax had been paid to the
 appropriate taxation authority.

 
	
  

 	
  

 
	
 22.4.

 	
 Exclusion of tax on
 overall net income. In this Clause 22 “tax
 deduction” means any deduction or withholding for or on account of
 any present or future tax except tax on a Creditor Party’s overall net
 income.

 
	
  

 	
  

 
	
 22.5.

 	
 Application to
 Master Agreements. For the avoidance of doubt,
 Clause 22 does not apply in respect of sums due from a Borrower to a Swap
 Counterparty under or in connection with a Master Agreement as to which sums
 the provisions of section 2(d) (Deduction or Withholding for Tax) of that
 Master Agreement shall apply.

 
	
  

 	
  

 
	
 23

 	
 ILLEGALITY, ETC

 
	
  

 	
  

 
	
 23.1.

 	
 Illegality.
 This Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent
 that it has become, or will with effect from a specified date, become:

 
	
  

 	
  

 
	
 (a)

 	
 unlawful or prohibited as a result of the introduction of a new law,
 an amendment to an existing law or a change in the manner in which an
 existing law is or will be interpreted or applied; or

 
	
  

 	
  

 
	
 (b)

 	
 contrary to, or inconsistent with, any regulation,

 

53

	
  

 	
  

 
	
  

 	
 for the Notifying Lender to maintain or give effect to any of its
 obligations under this Agreement in the manner contemplated by this
 Agreement.

 
	
  

 	
  

 
	
 23.2.

 	
 Notification of
 illegality. The Agent shall promptly notify the
 Borrowers, the Security Parties, the Security Trustee and the other Lenders
 of the notice under Clause 23.1 which the Agent receives from the Notifying
 Lender.

 
	
  

 	
  

 
	
 23.3.

 	
 Prepayment;
 termination of Commitment. On the Agent notifying
 the Borrowers under Clause 23.2, the Notifying Lender’s Commitment shall
 terminate; and thereupon or, if later, on the date specified in the Notifying
 Lender’s notice under Clause 23.1 as the date on which the notified event
 would become effective the Borrowers shall prepay the Notifying Lender’s
 Contribution in accordance with Clause 8.

 
	
  

 	
  

 
	
 23.4.

 	
 Mitigation.
 If circumstances arise which would result in a notification under Clause 23.1
 then, without in any way limiting the rights of the Notifying Lender under
 Clause 23.3, the Notifying Lender shall use reasonable endeavours to transfer
 its obligations, liabilities and rights under this Agreement and the Finance
 Documents to another office or financial institution not affected by the
 circumstances but the Notifying Lender shall not be under any obligation to
 take any such action if, in its opinion, to do would or might:

 
	
  

 	
  

 
	
 (a)

 	
 have an adverse effect on its business, operations or financial
 condition; or

 
	
  

 	
  

 
	
 (b)

 	
 involve it in any activity which is unlawful or prohibited or any
 activity that is contrary to, or inconsistent with, any regulation; or

 
	
  

 	
  

 
	
 (c)

 	
 involve it in any expense (unless indemnified to its satisfaction) or
 tax disadvantage.

 
	
  

 	
  

 
	
 24

 	
 INCREASED COSTS

 
	
  

 	
  

 
	
 24.1.

 	
 Increased costs.
 This Clause 24 applies if a Lender (the “Notifying Lender”) notifies the Agent
 that the Notifying Lender considers that as a result of:

 
	
  

 	
  

 
	
 (a)

 	
 the introduction or alteration after the date of this Agreement of a
 law or an alteration after the date of this Agreement in the manner in which
 a law is interpreted or applied (disregarding any effect which relates to the
 application to payments under this Agreement of a tax on the Lender’s overall
 net income); or

 
	
  

 	
  

 
	
 (b)

 	
 complying with any regulation (including any which relates to capital
 adequacy or liquidity controls or which affects the manner in which the
 Notifying Lender allocates capital resources to its obligations under this
 Agreement) which is introduced, or altered, or the interpretation or
 application of which is altered, after the date of this Agreement,

 
	
  

 	
  

 
	
  

 	
 the Notifying Lender (or a parent company of it) has incurred or will
 incur an “increased cost”.

 
	
  

 	
  

 
	
 24.2.

 	
 Meaning of “increased cost”. In this Clause 24, “increased
 cost” means, in relation to a Notifying Lender;

 
	
  

 	
  

 
	
 (a)

 	
 an additional or increased cost incurred as a result of, or in
 connection with, the Notifying Lender having entered into, or being a party
 to, this Agreement or a Transfer Certificate, of funding or maintaining its
 Commitment or Contribution or performing its obligations under this
 Agreement, or of having outstanding all or any part of its Contribution or
 other unpaid sums;

 
	
  

 	
  

 
	
 (b)

 	
 a reduction in the amount of any payment to the Notifying Lender
 under this Agreement or in the effective return which such a payment
 represents to the Notifying Lender or on its capital;

 
	
  

 	
  

 
	
 (c)

 	
 an additional or increased cost of funding all or maintaining all or
 any of the advances comprised in a class of advances formed by or including
 the Notifying Lender’s Contribution or (as the case may require) the
 proportion of that cost attributable to the Contribution; or

 

54

	
  

 	
  

 
	
 (d)

 	
 a liability to make a payment, or a return foregone, which is
 calculated by reference to any amounts received or receivable by the
 Notifying Lender under this Agreement;

 
	
  

 	
  

 
	
  

 	
 but not an item attributable to a change in the rate of tax on the
 overall net income of the Notifying Lender (or a parent company of it) or an
 item covered by the indemnity for tax in Clause 21.1 or by Clause 22 or an
 item arising directly out of the implementation or application of or
 compliance with the “International Convergence of Capital Measurement and
 Capital Standards, a Revised Framework” published by the Basel Committee on
 Banking Supervision in June 2004, in the form existing on the date of this
 Agreement (“Basel II”) or any other law or regulation which implements
 Basel II (whether such implementation, application or compliance is by a
 government, regulator, Creditor Party or any of its affiliates) provided
 that this exception shall not apply to any Increased Cost arising
 directly or indirectly from the implementation or application of or
 compliance with the global regulatory standards on bank capital adequacy and
 liquidity referred to by the Basel Committee as “Basel III” or the “Basel III
 Framework” published in December 2010, together with any further guidance or standards
 in relation to “Basel III” or the “Basel III Framework” published or to be
 published by the Basel Committee.

 
	
  

 	
  

 
	
  

 	
 For the purposes of this Clause 24.2 the Notifying Lender may in good
 faith allocate or spread costs and/or losses among its assets and liabilities
 (or any class of its assets and liabilities) on such basis as it considers
 appropriate.

 
	
  

 	
  

 
	
 24.3.

 	
 Notification to
 Borrowers of claim for increased costs. The Agent
 shall promptly notify the Borrowers and the Security Parties of the notice
 which the Agent received from the Notifying Lender under Clause 24.1.

 
	
  

 	
  

 
	
 24.4.

 	
 Payment of
 increased costs. The Borrowers shall pay to the
 Agent, on the Agent’s demand, for the account of the Notifying Lender the
 amounts which the Agent from time to time notifies the Borrowers that the
 Notifying Lender has specified to be necessary to compensate the Notifying
 Lender for the increased cost.

 
	
  

 	
  

 
	
 24.5.

 	
 Notice of
 prepayment. If the Borrowers are not willing to
 continue to compensate the Notifying Lender for the increased cost under
 Clause 24.4, the Borrowers may give the Agent not less than 14 days’ notice
 of their intention to prepay the Notifying Lender’s Contribution at the end
 of an Interest Period.

 
	
  

 	
  

 
	
 24.6.

 	
 Prepayment;
 termination of Commitment. A notice under Clause
 24.5 shall be irrevocable; the Agent shall promptly notify the Notifying
 Lender of the Borrowers’ notice of intended prepayment; and:

 
	
  

 	
  

 
	
 (a)

 	
 on the date on which the Agent serves that notice, the Commitment of
 the Notifying Lender shall be cancelled; and

 
	
  

 	
  

 
	
 (b)

 	
 on the date specified in its notice of intended prepayment, the
 Borrowers shall prepay (without premium or penalty) the Notifying Lender’s
 Contribution, together with accrued interest thereon at the applicable rate
 plus the Margin and the Mandatory Cost (if any).

 
	
  

 	
  

 
	
 24.7.

 	
 Application of
 prepayment. Clause 8 shall apply in relation to the
 prepayment.

 
	
  

 	
  

 
	
 25

 	
 SET-OFF

 
	
  

 	
  

 
	
 25.1.

 	
 Application of
 credit balances. Each Creditor Party may without
 prior notice:

 
	
  

 	
  

 
	
 (a)

 	
 apply any balance (whether or not then due) which at any time stands
 to the credit of any account in the name of a Borrower at any office in any
 country of that Creditor Party in or towards satisfaction of any sum then due
 from that Borrower to that Creditor Party under any of the Finance Documents
 or Master Agreements provided that Citibank N.A., London Branch and Nordea
 Bank Finland Plc each acting in its capacity as a Swap Bank shall not be
 entitled to set off amounts due to it under the Master Agreements to which it
 is a party against 

 

55

	
  

 	
  

 	
  

 
	
  

 	
 amounts in the Earnings Account held by Citibank N.A., London Branch
 and Nordea Bank Finland Plc, London Branch, respectively, each in its
 capacity as an account bank; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 for that purpose:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 break, or alter the maturity of, all or any part of a deposit of that
 Borrower;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 convert or translate all or any part of a deposit or other credit
 balance into Dollars;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 enter into any other transaction or make any entry with regard to the
 credit balance which the Creditor Party concerned considers appropriate.

 
	
  

 	
  

 	
  

 
	
 25.2.

 	
 Existing rights
 unaffected. No Creditor Party shall be obliged to
 exercise any of its rights under Clause 25.1; and those rights shall be
 without prejudice and in addition to any right of set-off; combination of
 accounts, charge, lien or other right or remedy to which a Creditor Party is
 entitled (whether under the general law or any document).

 
	
  

 	
  

 	
  

 
	
 25.3.

 	
 Sums deemed due to
 a Lender. For the purposes of this Clause 25, a sum
 payable by the Borrowers to the Agent or the Security Trustee for
 distribution to, or for the account of, a Lender shall be treated as a sum
 due to that Lender; and each Lender’s proportion of a sum so payable for
 distribution to, or for the account of the Lenders shall be treated as a sum
 due to such Lender.

 
	
  

 	
  

 	
  

 
	
 25.4.

 	
 No Security
 Interest. This Clause 25 gives the Creditor Parties
 a contractual right of set-off only and does not create any equitable charge
 or other Security Interest over any credit balance of any Borrower.

 
	
  

 	
  

 	
  

 
	
 26

 	
 TRANSFERS AND CHANGES IN LENDING OFFICES

 
	
  

 	
  

 	
  

 
	
 26.1.

 	
 Transfer by
 Borrowers. No Borrower may, without the consent of
 the Agent, given on the instructions of all the Lenders transfer any of its
 rights, liabilities or obligations under any Finance Document.

 
	
  

 	
  

 	
  

 
	
 26.2.

 	
 Transfer by a
 Lender. Subject to Clauses 26.4 and 26.11 and the
 proviso to this Clause 26.2, a Lender (the “Transferor Lender”) may
 at any time, with the consent of the Agent and (prior to an Event of Default) the Borrowers
 (such consent of the Borrowers not to be unreasonably withheld
 or delayed) but not any Security Party, cause:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 its rights in respect of all or part (subject to a minimum of
 $10,000,000) of its Contribution; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 its obligations in respect of all or part (subject to a minimum of
 $10,000,000) of its Commitment; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 a combination of (a) and (b);

 
	
  

 	
  

 	
  

 
	
  

 	
 to be (in the case of its rights) transferred to, or (in the case of
 its obligations) assumed by, another bank or financial institution (a “Transferee
 Lender”) by delivering to the Agent a completed
 certificate in the form set out in Schedule 5 with any modifications approved
 or required by the Agent (a “Transfer Certificate”) executed
 by the Transferor Lender and the Transferee Lender Provided that a Lender may,
 without requiring the consent of the Borrowers or any Security Party,
 transfer any its rights and/or obligations mentioned above at no cost or
 expense to the Borrowers to:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any other branch of that Lender;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any direct or indirect subsidiary or affiliate of that Lender; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 a company of which that Lender is a subsidiary.

 

56

	
  

 	
  

 
	
  

 	
 However any rights and obligations of the Transferor Lender in its
 capacity as Agent or Security Trustee will have to be dealt with separately
 in accordance with the Agency and Trust Agreement.

 
	
  

 	
  

 
	
 26.3.

 	
 Transfer
 Certificate, delivery and notification. As soon as
 reasonably practicable after a Transfer Certificate is delivered to the
 Agent, it shall (unless it has reason to believe that the Transfer Certificate
 may be defective):

 
	
  

 	
  

 
	
 (a)

 	
 sign the Transfer Certificate on behalf of itself, the Borrowers, the
 Security Parties, the Security Trustee, each of the other Lenders and each of
 Swap Banks;

 
	
  

 	
  

 
	
 (b)

 	
 on behalf of the Transferee Lender, send to each Borrower and each
 Security Party letters or faxes notifying them of the Transfer Certificate
 and attaching a copy of it;

 
	
  

 	
  

 
	
 (c)

 	
 send to the Transferee Lender copies of the letters or faxes sent
 under paragraph (b)

 
	
  

 	
  

 
	
  

 	
 but the Agent shall only be obliged to execute a Transfer Certificate
 delivered to it by the Transferor Lender and the Transferee Lender once it is
 satisfied it has complied with all necessary “know your customer” or other
 similar checks under all applicable laws and regulations in relation to the
 transfer to that Transferee Lender.

 
	
  

 	
  

 
	
 26.4.

 	
 Effective Date of
 Transfer Certificate. A Transfer Certificate becomes
 effective on the date, if any, specified in the Transfer Certificate as its
 effective date Provided that it is signed by the Agent under Clause 26.3,
 and the fee referred to in Clause 26.11 has been received by the Agent, on or
 before that date.

 
	
  

 	
  

 
	
 26.5.

 	
 No transfer without
 Transfer Certificate. No assignment or transfer of
 any right or obligation of a Lender under any Finance Document is binding on,
 or effective in relation to, any Borrower, any Security Party, the Agent, the
 Security Trustee or a Swap Bank unless it is effected, evidenced or perfected
 by a Transfer Certificate.

 
	
  

 	
  

 
	
 26.6.

 	
 Lender
 re-organisation; waiver of Transfer Certificate. However,
 if a Lender enters into any merger, de-merger or other reorganisation as a
 result of which all its rights or obligations vest in another person (the “successor”), the
 Agent may, if it sees fit, by notice to the successor and the Borrowers and
 the Security Trustee waive the need for the execution and delivery of a
 Transfer Certificate; and, upon service of the Agent’s notice, the successor
 shall become a Lender with the same Commitment and Contribution as were held
 by the predecessor Lender.

 
	
  

 	
  

 
	
 26.7.

 	
 Effect of Transfer
 Certificate. A Transfer Certificate takes effect in
 accordance with English law as follows:

 
	
  

 	
  

 
	
 (a)

 	
 to the extent specified in the Transfer Certificate, all rights and
 interests (present, future or contingent) which the Transferor Lender has
 under or by virtue of the Finance Documents are assigned to the Transferee
 Lender absolutely, free of any defects in the Transferor Lender’s title and
 of any rights or equities which any Borrower or any Security Party had
 against the Transferor Lender;

 
	
  

 	
  

 
	
 (b)

 	
 the Transferor Lender’s Commitment is discharged to the extent
 specified in the Transfer Certificate;

 
	
  

 	
  

 
	
 (c)

 	
 the Transferee Lender becomes a Lender with the Contribution
 previously held by the Transferor Lender and a Commitment of an amount
 specified in the Transfer Certificate;

 
	
  

 	
  

 
	
 (d)

 	
 the Transferee Lender becomes bound by all the provisions of the
 Finance Documents which are applicable to the Lenders generally, including
 those about pro-rata sharing and the exclusion of liability on the part of,
 and the indemnification of, the Agent and the Security Trustee and, to the
 extent that the Transferee Lender becomes bound by those provisions (other
 than those relating to exclusion of liability), the Transferor Lender ceases
 to be bound by them;

 

57

	
  

 	
  

 
	
 (e)

 	
 any part of the Loan which the Transferee Lender advances after the
 Transfer Certificate’s effective date ranks in point of priority and security
 in the same way as it would have ranked had it been advanced by the
 transferor, assuming that any defects in the transferor’s title and any
 rights or equities of any Borrower or any Security Party against the
 Transferor Lender had not existed;

 
	
  

 	
  

 
	
 (f)

 	
 the Transferee Lender becomes entitled to all the rights under the
 Finance Documents which are applicable to the Lenders generally, including
 but not limited to those relating to the Majority Lenders and those under
 Clause 5.7 and Clause 20, and to the extent that the Transferee Lender
 becomes entitled to such rights, the Transferor Lender ceases to be entitled
 to them; and

 
	
  

 	
  

 
	
 (g)

 	
 in respect of any breach of a warranty, undertaking, condition or
 other provision of a Finance Document or any misrepresentation made in or in
 connection with a Finance Document, the Transferee Lender shall be entitled
 to recover damages by reference to the loss incurred by it as a result of the
 breach or misrepresentation, irrespective of whether the original Lender
 would have incurred a loss of that kind or amount.

 
	
  

 	
  

 
	
  

 	
 The rights and equities of any Borrower or any Security Party
 referred to above include, but are not limited to, any right of set off and
 any other kind of cross-claim.

 
	
  

 	
  

 
	
 26.8.

 	
 Maintenance of
 register of Lenders. During the Security Period the
 Agent shall maintain a register in which it shall record the name,
 Commitment, Contribution and administrative details (including the lending
 office) from time to time of each Lender holding a Transfer Certificate and
 the effective date (in accordance with Clause 26.4) of the Transfer
 Certificate; and the Agent shall make the register available for inspection
 by any Lender, the Security Trustee and the Borrowers during normal banking
 hours, subject to receiving at least 3 Business Days prior notice.

 
	
  

 	
  

 
	
 26.9.

 	
 Reliance on
 register of Lenders. The entries on that register
 shall, in the absence of manifest error, be conclusive in determining the
 identities of the Lenders and the amounts of their Commitments and
 Contributions and the effective dates of Transfer Certificates and may be
 relied upon by the Agent and the other parties to the Finance Documents for
 all purposes relating to the Finance Documents.

 
	
  

 	
  

 
	
 26.10.

 	
 Authorisation of
 Agent to sign Transfer Certificates. Each Borrower,
 the Security Trustee, each Lender and each Swap Bank irrevocably authorises
 the Agent to sign Transfer Certificates on its behalf.

 
	
  

 	
  

 
	
 26.11.

 	
 Registration fee.
 In respect of any Transfer Certificate, the Agent shall be entitled to
 receive a registration fee of $3,500 from the Transferor Lender or (at the
 Agent’s option) the Transferee Lender.

 
	
  

 	
  

 
	
 26.12.

 	
 Sub-participation;
 subrogation assignment. A Lender may sub-participate
 all or any part of its rights and/or obligations under or in connection with
 the Finance Documents without the consent of, or any notice to, any Borrower,
 any Security Party, the Agent or the Security Trustee; and the Lenders may
 assign, in any manner and terms agreed by the Majority Lenders, the Agent and
 the Security Trustee, all or any part of those rights to an insurer or surety
 who has become subrogated to them.

 
	
  

 	
  

 
	
 26.13.

 	
 Disclosure of
 information. A Lender may disclose to a potential
 Transferee Lender or sub-participant any information which the Lender has
 received in relation to any Borrower, any Security Party or their affairs
 under or in connection with any Finance Document, unless the information is
 clearly of a confidential nature.

 
	
  

 	
  

 
	
 26.14.

 	
 Change of lending
 office. A Lender may change its lending office by
 giving notice to the Agent and the change shall become effective on the later
 of:

 
	
  

 	
  

 
	
 (a)

 	
 the date on which the Agent receives the notice; and

 

58

	
  

 	
  

 	
  

 
	
 (b)

 	
 the date, if any, specified in the notice as the date on which the
 change will come into effect.

 
	
  

 	
  

 	
  

 
	
 26.15.

 	
 Notification. On
 receiving such a notice, the Agent shall notify the Borrowers and the
 Security Trustee; and, until the Agent receives such a notice, it shall be
 entitled to assume that a Lender is acting through the lending office of
 which the Agent last had notice.

 
	
  

 	
  

 	
  

 
	
 26.16.

 	
 Replacement of
 Reference Bank. If any Reference Bank ceases to be a
 Lender or is unable on a continuing basis to supply quotations for the
 purposes of Clause 5 then, unless the Borrowers, the Agent and the Majority
 Lenders otherwise agree, the Agent, acting on the instructions of the
 Majority Lenders, and after consulting the Borrowers, shall appoint another
 bank (whether or not a Lender) to be a replacement Reference Bank; and, when
 that appointment comes into effect, the first-mentioned Reference Bank’s
 appointment shall cease to be effective.

 
	
  

 	
  

 	
  

 
	
 26.17.

 	
 Security over
 Lenders’ rights. In addition to the other rights
 provided to Lenders under this Clause 26, each Lender may without consulting
 with or obtaining consent from any Borrower or any Security Party, at any
 time charge, assign or otherwise create a Security Interest in or over
 (whether by way of collateral or otherwise) all or any of its rights under
 any Finance Document to secure obligations of that Lender including, without
 limitation:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 any charge, assignment or other Security Interest to secure
 obligations to a federal reserve or central bank; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 in the case of any Lender which is a fund, any charge, assignment or
 other Security Interest granted to any holders (or trustee or representatives
 of holders) of obligations owed, or securities issued, by that Lender as
 security for those obligations or securities;

 
	
  

 	
  

 	
  

 
	
  

 	
 except that no such charge, assignment or Security Interest shall:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 release a Lender from any of its obligations under the Finance
 Documents or substitute the beneficiary of the relevant charge, assignment or
 Security Interest for the Lender as a party to any of the Finance Documents;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 require any payments to be made by any Borrower or any Security Party
 or grant to any person any more extensive rights than those required to be
 made or granted to the relevant Lender under the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 27

 	
 VARIATIONS AND WAIVERS

 
	
  

 	
  

 	
  

 
	
 27.1.

 	
 Variations, waivers
 etc. by Majority Lenders. Subject to Clause 27.2, a
 document shall be effective to vary, waive, suspend or limit any provision of
 a Finance Document, or any Creditor Party’s rights or remedies under such a
 provision or the general law, only if the document is signed, or specifically
 agreed to by fax, by the Borrowers, by the Agent on behalf of the Majority
 Lenders, by the Agent and the Security Trustee in their own rights, and, if
 the document relates to a Finance Document to which a Security Party is
 party, by that Security Party.

 
	
  

 	
  

 	
  

 
	
 27.2.

 	
 Variations, waivers
 etc. requiring agreement of all Lenders. However, as
 regards the following, Clause 27.1 applies as if the words “by the Agent on
 behalf of the Majority Lenders” were replaced by the words “by or on behalf
 of every Lender and every Swap Bank”:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 a change in the Margin or in the definition of LIBOR or the Mandatory
 Cost;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 a change to the date for, the amount of, any payment of principal,
 interest, fees, or other sum payable under this Agreement;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 a change to any Lender’s Commitment;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 an extension of Availability Period;

 

59

	
  

 	
  

 	
  

 
	
 (e)

 	
 a change to the definition of “Creditor Parties”, “Confirmation”,
 “Designated Transaction”, “Finance Documents”, “Majority Lenders”, “Master
 Agreement”, “Qualified IPO”, “Secured Liabilities”, “Swap
 Bank”, “Swap Counterparty”, “Swap Exposure” or “Transaction”;

 
	
  

 	
  

 
	
 (f)

 	
 a change to Clause 3 or this Clause 27;

 
	
  

 	
  

 
	
 (g)

 	
 any release of or material variation to, a Security Interest,
 guarantee, indemnity or subordination arrangement set out in a Finance
 Document (Provided that for the avoidance of doubt, it is agreed by
 the Creditor Parties that the Counter-Guarantee executed by each
 Counter-Guarantor shall be released by the Agent (without any warranty,
 representation, covenant or other recourse) immediately following the
 completion of a Qualified IPO, without obtaining any further consent
 from any other Creditor Party (upon the request and cost of the respective
 Counter-Guarantor);

 
	
  

 	
  

 
	
 (h)

 	
 a change to any of the consent rights granted to the Swap Banks under
 the Finance Documents; and

 
	
  

 	
  

 
	
 (i)

 	
 any other change or matter as regards which this Agreement or another
 Finance Document expressly provides that each Lender’s and Swap Bank’s
 consent is required.

 
	
  

 	
  

 
	
 27.3.

 	
 Exclusion of other
 or implied variations. Except for a document which
 satisfies the requirements of Clauses 27.1 and 27.2, no document, and no act,
 course of conduct, failure or neglect to act, delay or acquiescence on the
 part of the Creditor Parties or any of them (or any person acting on behalf
 of any of them) shall result in the Creditor Parties or any of them (or any
 person acting on behalf of any of them) being taken to have varied, waived,
 suspended or limited, or being precluded (permanently or temporarily) from
 enforcing, relying on or exercising:

 
	
  

 	
  

 
	
 (a)

 	
 a provision of this Agreement, another Finance Document or a Master
 Agreement; or

 
	
  

 	
  

 
	
 (b)

 	
 an Event of Default; or

 
	
  

 	
  

 
	
 (c)

 	
 a breach by a Borrower or a Security Party of an obligation under a
 Finance Document, a Master Agreement or the general law; or

 
	
  

 	
  

 
	
 (d)

 	
 any right or remedy conferred by any Finance Document, by a Master
 Agreement or by the general law;

 
	
  

 	
  

 
	
  

 	
 and there shall not be implied into any Finance Document any term or
 condition requiring any such provision to be enforced, or such right or
 remedy to be exercised, within a certain or reasonable time.

 
	
  

 	
  

 
	
 28

 	
 NOTICES

 
	
  

 	
  

 
	
 28.1.

 	
 General.
 Unless otherwise specifically provided, any notice under or in connection
 with any Finance Document shall be given by letter or fax; and references in
 the Finance Documents to written notices, notices in writing and notices signed
 by particular persons shall be construed accordingly.

 
	
  

 	
  

 
	
 28.2.

 	
 Addresses for communications. A notice shall be sent:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 to the
 Borrowers:

 	
 c/o GasLog
 Monaco SAM 

 Gildo Pastor Center

 7, rue du Gabian

 MC 98000 Monaco

 
	
  

 	
  

 
	
  

 	
  

 	
 Fax No: +377
 97975124

 
	
  

 	
  

 
	
 (b)

 	
 to a Lender:

 	
 At the
 address below its name in Schedule 1 or (as the case may 

 

60

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 require) in
 the relevant Transfer Certificate.

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 to a Swap
 Bank:

 	
 At the
 address below its name in Schedule 2;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 to the Agent

 or the Security Trustee:

 	
 8th Floor

 City Place House

 55 Basinghall Street

 London EC2V 5NB

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fax No: +44
 20 7726 9102

 Attn: Loan Administration

 (in relation to loan administration matters)

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fax No: +44
 (0) 20 7726 9188

 Attn: Shipping Department

 (in relation to credit and all other matters)

 
	
  

 	
  

 	
  

 
	
  

 	
 or to such other address as the relevant party may notify the Agent
 or, if the relevant party is the Agent or the Security Trustee, the
 Borrowers, the Lenders, the Swap Banks and the Security Parties.

 
	
  

 	
  

 
	
 28.3.

 	
 Effective date of
 notices. Subject to Clauses 28.4 and 28.5:

 
	
  

 	
  

 
	
 (a)

 	
 a notice which is delivered personally or posted shall be deemed to
 be served, and shall take effect, at the time when it is delivered;

 
	
  

 	
  

 
	
 (b)

 	
 a notice which is sent by fax shall be deemed to be served, and shall
 take effect, 2 hours after its transmission is completed.

 
	
  

 	
  

 
	
 28.4.

 	
 Service outside
 business hours. However, if under Clause 28.3 a
 notice would be deemed to be served:

 
	
  

 	
  

 
	
 (a)

 	
 on a day which is not a business day in the place of receipt; or

 
	
  

 	
  

 
	
 (b)

 	
 on such a business day, but after 5 p.m. local time;

 
	
  

 	
  

 
	
  

 	
 the notice shall (subject to Clause 28.5) be deemed to be served, and
 shall take effect, at 9 a.m. on the next day which is such a business day.

 
	
  

 	
  

 
	
 28.5.

 	
 Illegible notices.
 Clauses 28.3 and 28.4 do not apply if the recipient of a notice notifies the
 sender within 1 hour after the time at which the notice would otherwise be
 deemed to be served that the notice has been received in a form which is
 illegible in a material respect.

 
	
  

 	
  

 
	
 28.6.

 	
 Valid notices.
 A notice under or in connection with a Finance Document shall not be invalid
 by reason that its contents or the manner of serving it do not comply with
 the requirements of this Agreement or, where appropriate, any other Finance
 Document under which it is served if:

 
	
  

 	
  

 
	
 (a)

 	
 the failure to serve it in accordance with the requirements of this
 Agreement or other Finance Document, as the case may be, has not caused any
 party to suffer any significant loss or prejudice; or

 
	
  

 	
  

 
	
 (b)

 	
 in the case of incorrect and/or incomplete contents, it should have
 been reasonably clear to the party on which the notice was served what the
 correct or missing particulars should have been.

 
	
  

 	
  

 
	
 28.7.

 	
 Electronic
 communication. Any communication to be made between
 the Agent and a Lender under or in connection with the Finance Documents may
 be made by electronic mail or other electronic means, if the Agent and the
 relevant Lender:

 
	
  

 	
  

 
	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 

61

	
  

 	
  

 
	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 
	
 (c)

 	
 notify each other of any change to their respective addresses or any
 other such information supplied to them.

 
	
  

 	
  

 
	
  

 	
 Any electronic communication made between the Agent and a Lender will
 be effective only when actually received in readable form and, in the case of
 any electronic communication made by a Lender to the Agent, only if it is
 addressed in such a manner as the Agent shall specify for this purpose.

 
	
  

 	
  

 
	
 28.8.

 	
 English language.
 Any notice under or in connection with a Finance Document shall be in
 English.

 
	
  

 	
  

 
	
 28.9.

 	
 Meaning of
 “notice”. In this Clause 28, “notice” includes any
 demand, consent, authorisation, approval, instruction, waiver or other
 communication.

 
	
  

 	
  

 
	
 29

 	
 SUPPLEMENTAL

 
	
  

 	
  

 
	
 29.1.

 	
 Rights cumulative,
 non-exclusive. The rights and remedies which the
 Finance Documents give to each Creditor Party are:

 
	
  

 	
  

 
	
 (a)

 	
 cumulative;

 
	
  

 	
  

 
	
 (b)

 	
 may be exercised as often as appears expedient; and

 
	
  

 	
  

 
	
 (c)

 	
 shall not, unless a Finance Document explicitly and specifically
 states so, be taken to exclude or limit any right or remedy conferred by any
 law.

 
	
  

 	
  

 
	
 29.2.

 	
 Severability of
 provisions. If any provision of a Finance Document
 is or subsequently becomes void, unenforceable or illegal, that shall not
 affect the validity, enforceability or legality of the other provisions of
 that Finance Document or of the provisions of any other Finance Document.

 
	
  

 	
  

 
	
 29.3.

 	
 Counterparts. A
 Finance Document may be executed in any number of counterparts.

 
	
  

 	
  

 
	
 29.4.

 	
 Third Party rights.
 A person who is not a party to this Agreement has no
 right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to
 enjoy the benefit of any term of this Agreement.

 
	
  

 	
  

 
	
 30

 	
 JOINT AND SEVERAL LIABILITY OF THE
 BORROWERS

 
	
  

 	
  

 
	
 30.1.

 	
 General. All
 liabilities and obligations of the Borrowers under this Agreement shall,
 whether expressed to be so or not, be joint and several.

 
	
  

 	
  

 
	
 30.2.

 	
 No impairment of
 Borrower’s obligations. The liabilities and
 obligations of a Borrower shall not be impaired by:

 
	
  

 	
  

 
	
 (a)

 	
 this Agreement being or later becoming void, unenforceable or illegal
 as regards any other Borrower;

 
	
  

 	
  

 
	
 (b)

 	
 any Lender or the Security Trustee entering into any rescheduling,
 refinancing or other arrangement of any kind with any other Borrower;

 
	
  

 	
  

 
	
 (c)

 	
 any Lender or the Security Trustee releasing any other Borrower or
 any Security Interest created by a Finance Document;

 
	
  

 	
  

 
	
 (d)

 	
 any time, waiver or consent granted to, or composition with any other
 Borrower or other person;

 

62

	
  

 	
  

 
	
 (e)

 	
 the release of any other Borrower or any other person under the terms
 of any composition or arrangement with any creditor;

 
	
  

 	
  

 
	
 (f)

 	
 the taking, variation, compromise, exchange, renewal or release of,
 or refusal or neglect to perfect, take up or enforce, any rights against, or
 security over assets of any other Borrower or other person or any
 non-presentation or non-observance of any formality or other requirement in
 respect of any instrument or any failure to realise the full value of any
 security;

 
	
  

 	
  

 
	
 (g)

 	
 any incapacity or lack of power, authority or legal personality of or
 dissolution or charge in the members or status of any other Borrower or any
 other person;

 
	
  

 	
  

 
	
 (h)

 	
 any amendment (however fundamental) or replacement of a Finance
 Document or any other document or security;

 
	
  

 	
  

 
	
 (i)

 	
 any unenforceability, illegality or invalidity of any obligation or
 any person under any Finance Document or any other document or security; or

 
	
  

 	
  

 
	
 (j)

 	
 any insolvency or similar proceedings; or

 
	
  

 	
  

 
	
 (k)

 	
 any combination of the forgoing.

 
	
  

 	
  

 
	
 30.3.

 	
 Principal debtors.
 Each Borrower declares that it is and will, throughout the Security Period,
 remain a principal debtor for all amounts owing under this Agreement, the
 Finance Documents and any Master Agreement and no Borrower shall, in any
 circumstances, be construed to be a surety for the obligations of any other
 Borrower under this Agreement.

 
	
  

 	
  

 
	
 30.4.

 	
 Subordination.
 Subject to Clause 30.5, during the Security Period no Borrower shall:

 
	
  

 	
  

 
	
 (a)

 	
 claim any amount which may be due to it from any other Borrower
 whether in respect of a payment made under, or matter arising out of, this
 Agreement or any Finance Document, or Master Agreement or any matter
 unconnected with this Agreement or any Finance Document or Master Agreement;
 or

 
	
  

 	
  

 
	
 (b)

 	
 take or enforce any form of security from any other Borrower for such
 an amount, or in any the way seek to have recourse in respect of such an
 amount against any asset of any other Borrower; or

 
	
  

 	
  

 
	
 (c)

 	
 set off such an amount against any sum due from it to any other
 Borrower; or

 
	
  

 	
  

 
	
 (d)

 	
 prove or claim for such an amount in any liquidation, administration,
 arrangement or similar procedure involving any other Borrower; or

 
	
  

 	
  

 
	
 (e)

 	
 exercise or assert any combination of the foregoing.

 
	
  

 	
  

 
	
 30.5.

 	
 Borrower’s required action. If during the Security Period, the
 Agent, by notice to a Borrower, requires it to take any action referred to in
 Clause 30.4 in relation to any other Borrower, that Borrower shall take that
 action as soon as practicable after receiving the Agent’s notice.

 
	
  

 	
  

 
	
 30.6.

 	
 No indemnification.
 Until all amounts which may be or become payable by the Borrowers under or in
 connection with the Finance Documents and any Master Agreement have been
 irrevocably paid in full and unless the Agent otherwise directs, no Borrower
 will exercise any rights which it may have by reason of performance by it of
 its obligations under the Finance Documents or any Master Agreement:

 
	
  

 	
  

 
	
 (a)

 	
 to be indemnified by the other Borrower; or

 
	
  

 	
  

 
	
 (b)

 	
 to claim any contribution from the other Borrower in relation to any
 payment made by it under the Finance Documents or any Master Agreement.

 

63

	
  

 	
  

 
	
 31

 	
 LAW AND JURISDICTION

 
	
  

 	
  

 
	
 31.1.

 	
 English law.
 This Agreement and any non-contractual obligations arising out of or in
 connection with it shall be governed by, and construed in accordance with,
 English law.

 
	
  

 	
  

 
	
 31.2.

 	
 Exclusive English
 jurisdiction. Subject to Clause 31.3, the courts of
 England shall have exclusive jurisdiction to settle any Dispute.

 
	
  

 	
  

 
	
 31.3.

 	
 Choice of forum for
 the exclusive benefit of the Creditor Parties.
 Clause 31.2 is for the exclusive benefit of the Creditor Parties, each of
 which reserves the right:

 
	
  

 	
  

 
	
 (a)

 	
 to commence proceedings in relation to any Dispute in the courts of
 any country other than England and which have or claim jurisdiction to that
 Dispute; and

 
	
  

 	
  

 
	
 (b)

 	
 to commence such proceedings in the courts of any such country or
 countries concurrently with or in addition to proceedings in England or
 without commencing proceedings in England.

 
	
  

 	
  

 
	
  

 	
 Neither Borrower shall commence any proceedings in any country other
 than England in relation to Dispute.

 
	
  

 	
  

 
	
 31.4.

 	
 Process agent. Each
 Borrower irrevocably appoints Unisea Maritime Limited at its office for the
 time being, presently at 14 Headfort Place, London SW1X 7DH, England, to act
 as its agent to receive and accept on its behalf any process or other
 document relating to any proceedings in the English courts which are
 connected with a Dispute.

 
	
  

 	
  

 
	
 31.5.

 	
 Creditor Party
 rights unaffected. Nothing in this Clause 31 shall
 exclude or limit any right which any Creditor Party may have (whether under
 the law of any country, an international convention or otherwise) with regard
 to the bringing of proceedings, the service of process, the recognition or
 enforcement of a judgment or any similar or related matter in any
 jurisdiction.

 
	
  

 	
  

 
	
 31.6.

 	
 Meaning of
 “proceedings”. In this Clause 31, “proceedings” means
 proceedings of any kind, including an application for a provisional or
 protective measure and a “Dispute” means any dispute arising
 out of or in connection with this Agreement (including a dispute relating to
 the existence, validity or termination of this Agreement) or any
 non-contractual obligation arising out of or in connection with this
 Agreement.

 
	
  

 	
  

 
	
  

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

 

64

SCHEDULE 1

LENDERS AND COMMITMENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Lender

  

 	
  

 	
 Lending Office

 	
  

 	
 Commitment

 (US Dollars)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Nordea Bank
 Finland Plc,

 London Branch

 	
  

 	
 8th Floor

 City Place House 

 55 Basinghall Street

 London EC2V 5NB

 	
  

 	
 $92,333,333.34

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ABN AMRO
 Bank N.V.

 	
  

 	
 Coolsingel 93

 3012 AE Rotterdam 

 The Netherlands

 	
  

 	
 $92,333,333.33

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Citibank
 International Plc, 

 Greece Branch

 	
  

 	
 47/49 Akti
 Miaouli 

 Piraeus

 Greece

 	
  

 	
 $92,333,333.33

 

65

SCHEDULE 2

SWAP BANKS

	
  

 	
  

 	
  

 
	
 Swap Bank

 	
  

 	
 Booking Office

 
	
  

 	
  

 	
  

 
	
 Nordea Bank
 Finland Plc

 	
  

 	
 Aleksanterinkatu
 36

 (FIN-00020 NORDEA)

 00100 Helsinki 

 Finland

 
	
  

 
	
 ABN AMRO
 Bank N.V.

 	
  

 	
 Coolsingel
 93 

 3012 AE Rotterdam 

 The Netherlands

 
	
  

 
	
 Citibank
 NA., London Branch

 	
  

 	
 Citigroup
 Centre

 33 Canada Square

 Canary Wharf 

 London 

 E14 5LB

 

66

SCHEDULE 3

DRAWDOWN NOTICE

	
  

 	
  

 
	
 To:

 	
 Nordea Bank Finland Plc, London Branch 

 
	
  

 	
 8th Floor 

 
	
  

 	
 City Place House 

 
	
  

 	
 Basinghall Street 

 
	
  

 	
 London EC2V
 5NB

 
	
  

 	
  

 
	
 Attn:

 	
 Loans
 Administration

 

[date]

DRAWDOWN
NOTICE

	
  

 	
  

 
	
 1

 	
 We refer to the loan agreement (the “Loan Agreement”) dated
 [●] 2011 and made between ourselves, as Borrowers, the Lenders referred
 to therein, yourselves, ABN AMRO Bank N.V. and Citibank International Plc,
 Greece Branch as Joint Lead Arrangers and yourselves as Agent and as Security
 Trustee in connection with a facility of up to US$277,000,000. Terms defined
 in the Loan Agreement have their defined meanings when used in this Drawdown
 Notice.

 
	
  

 	
  

 
	
 2

 	
 We request to borrow as follows:

 
	
  

 	
  

 
	
 (a)

 	
 Amount: US$[●] in relation to Ship [1][2];

 
	
  

 	
  

 
	
 (b)

 	
 Drawdown Date: [●];

 
	
  

 	
  

 
	
 (c)

 	
 Duration of the first Interest Period shall be [●] months; and

 
	
  

 	
  

 
	
 (d)

 	
 Payment instructions: account of [●] and numbered [●]
 with [●] of [●].

 
	
  

 	
  

 
	
 3

 	
 We represent and warrant that:

 
	
  

 	
  

 
	
 (a)

 	
 the representations and warranties in Clause 10 of the Loan Agreement
 would remain true and not misleading if repeated on the date of this notice
 with reference to the circumstances now existing;

 
	
  

 	
  

 
	
 (b)

 	
 no Event of Default or Potential Event of Default has occurred or
 will result from the borrowing of the Loan.

 
	
  

 	
  

 
	
 4

 	
 This notice cannot be revoked without the prior consent of the
 Majority Lenders.

 

	
  

 	
  

 	
  

 
	
  

 	
 [Name of Signatory]

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 for and on behalf of

 	
  

 
	
  

 	
 GAS-five Ltd.

 	
  

 
	
  

 	
 GAS-six Ltd.

 	
  

 

67

SCHEDULE 4

CONDITION PRECEDENT DOCUMENTS

PART A

	
  

 	
  

 
	
 The following are the documents referred to in Clause 9.1(a).

 
	
  

 
	
 1

 	
 A duly executed original of each Finance Document (and of each
 document required to be delivered by each Finance Document) other than those
 referred to in Part B.

 
	
  

 	
  

 
	
 2

 	
 Copies of the constitutional documents of the Borrowers and each
 Security Party.

 
	
  

 	
  

 
	
 3

 	
 Copies of resolutions of the shareholders (only if required to obtain
 a satisfactory legal opinion from the lawyers referred to in paragraph 10
 below) and directors of each Borrower and each Security Party authorising the
 execution of each of the Finance Documents to which the Borrowers or that
 Security Party is a party and, in the case of the Borrowers, authorising
 named officers to give the Drawdown Notices and other notices under this
 Agreement.

 
	
  

 	
  

 
	
 4

 	
 The original of any power of attorney under which any Finance
 Document is executed on behalf of a Borrower or a Security Party.

 
	
  

 	
  

 
	
 5

 	
 Copies of all consents which any Borrower or any Security Party
 requires to enter into, or make any payment under, any Finance Document or
 the Shipbuilding Contracts.

 
	
  

 	
  

 
	
 6

 	
 Signed copies of the Shipbuilding Contracts and of all documents
 signed or issued by each Borrower or the Builder (or any of them) under or in
 connection with it.

 
	
  

 	
  

 
	
 7

 	
 The originals of any mandates or other documents (including, without
 limitation, any document necessary for electronic banking purposes) required
 in connection with the opening or operation of each Earnings Account.

 
	
  

 	
  

 
	
 8

 	
 Documentary evidence that the agent for service of process named in
 Clause 31 has accepted its appointment.

 
	
  

 	
  

 
	
 9

 	
 Favourable legal opinions from lawyers appointed by the Agent on such
 matters concerning the laws of Bermuda and such other relevant jurisdictions
 as the Agent may require.

 
	
  

 	
  

 
	
 10

 	
 Receipt of all documentation required by any Creditor Party in
 respect of any Borrower or any Security Party pursuant to that Creditor
 Party’s “Know your client” requirements.

 
	
  

 
	
 11

 	
 A letter from the Borrowers to the Agent confirming as at the date of
 this Agreement:

 
	
  

 	
  

 
	
 (a)

 	
 the identity of the company which is the legal holder and direct
 beneficial owner of 91.3 per cent. of the entire authorised and issued share
 capital of GasLog;

 
	
  

 	
  

 
	
 (b)

 	
 the identity of the company which (together with its affiliate(s)) is
 the legal holder and direct beneficial owner of 40 per cent. of the entire
 authorised and issued share capital of the company referred to in paragraph
 (a) above; and

 
	
  

 	
  

 
	
 (c)

 	
 the identity of the company which (together with its affiliate(s)) is
 the legal holder and direct beneficial owner of 60 per cent. of the entire
 authorised and issued share capital of the company referred to in paragraph
 (a) above,

 
	
  

 	
  

 
	
  

 	
 and confirmation by the Agent that such companies are acceptable to
 the Lenders in their sole discretion.

 

68

	
  

 	
  

 
	
 12

 	
 If the Agent so requires, in respect of any of the documents referred
 to above, a certified English translation prepared by a translator approved
 by the Agent.

 

69

PART B

The following are the documents referred to in Clause 9.1(b) required
before the drawdown of an Advance to be made on or before a Delivery Date. The
“Ship” means
the Ship which is being delivered on that Delivery Date and the “Borrower” means
the Borrower which is acquiring that Ship.

	
  

 	
  

 
	
 1

 	
 A duly executed original of the Mortgage, the Deed of Covenant, the
 General Assignment and the Charter Assignment relating to the Ship (and of
 each document to be delivered by each of them).

 
	
  

 	
  

 
	
 2

 	
 Signed copies of the Master Charterparty Agreement and Charter
 relating to each Ship.

 
	
  

 	
  

 
	
 3

 	
 Documentary evidence that and/or the Agent being satisfied that:

 
	
  

 	
  

 
	
 (a)

 	
 the Ship on the Delivery Date will be unconditionally delivered by
 the Builder to, and accepted by, the Borrower under the Shipbuilding
 Contract, and the full purchase price payable under the Shipbuilding Contract
 (in addition to the part to be financed by the Advance) shall have been duly
 paid;

 
	
  

 	
  

 
	
 (b)

 	
 the Ship on the Delivery Date will be definitively and permanently
 registered in the name of the Borrower under Bermudan flag;

 
	
  

 	
  

 
	
 (c)

 	
 the Ship on the Delivery Date will be in the absolute and
 unencumbered ownership of the Borrower save as contemplated by the Finance
 Documents;

 
	
  

 	
  

 
	
 (d)

 	
 the Ship on the Delivery Date will maintain highest notation with its
 classification society free of all recommendations and conditions of such
 classification society;

 
	
  

 	
  

 
	
 (e)

 	
 the relevant Mortgage on the Delivery Date will be duly registered
 against the Ship as a valid first preferred Bermudan ship mortgage in
 accordance with the laws of Bermuda; and

 
	
  

 	
  

 
	
 (f)

 	
 the Ship on the Delivery Date will be insured in accordance with the
 provisions of this Agreement and all requirements therein in respect of
 insurances shall have been complied with.

 
	
  

 	
  

 
	
 4

 	
 Documents establishing that the Ship will, as from the Drawdown Date,
 be managed by each Approved Manager on terms acceptable to the Lenders and in
 accordance with the ISM Code and the ISPS Code, together with:

 
	
  

 	
  

 
	
 (a)

 	
 a letter of undertaking executed by each Approved Manager in favour
 of the Agent in the terms required by the Agent agreeing certain matters in
 relation to the management of the Ship and subordinating the rights of that
 Approved Manager against the Borrowers (and any of them) and the Ship to the
 rights of the Creditor Parties under the Finance Documents; and

 
	
  

 	
  

 
	
 (b)

 	
 copies of the technical Approved Manager’s Document of Compliance and
 of the Ship’s Safety Management Certificate (together with any other details
 of the applicable safety management system which the Agent requires).

 
	
  

 	
  

 
	
 5

 	
 Confirmation by the Borrower which will own the Ship to the Agent
 that on the Delivery Date the Ship will comply in all respects with the
 description and Condition on Delivery of the Ship as set out in the Charter.

 
	
  

 	
  

 
	
 6

 	
 A favourable opinion from an independent insurance consultant
 acceptable to the Agent (at the Borrower’s cost) on such matters relating to
 the insurances for each Ship as the Agent may require.

 
	
  

 	
  

 
	
 7

 	
 Favourable legal opinions from lawyers appointed by the Agent on such
 matters concerning the law of Bermuda and such other relevant jurisdictions
 as the Agent may require.

 

70

	
  

 	
  

 
	
 8

 	
 A valuation of the Ship addressed to the Agent and dated not earlier
 than 1 month before the Drawdown Date which evidences compliance with Clause
 15.1 immediately after the Drawdown Date.

 
	
  

 	
  

 
	
 9

 	
 If the Agent so requires, in respect of any of the documents referred
 to above, a certified English translation prepared by a translator approved
 by the Agent.

 
	
  

 	
  

 
	
 Each of the documents specified in paragraphs 2, 3, 5 and 6 of Part A
 and every other copy document delivered under this Schedule shall be
 certified as a true and up to date copy by a director or the secretary (or
 equivalent officer) of a Borrower or, as the case may be, a Security Party.

 

71

SCHEDULE 5

TRANSFER CERTIFICATE

The
Transferor and the Transferee accept exclusive responsibility for ensuring that
this Certificate and the transaction to which it relates comply with all legal
and regulatory requirements applicable to them respectively.

	
  

 	
  

 
	
 To:

 	
 Nordea Bank Finland Plc, London Branch for itself and for and on
 behalf of the Borrowers, each Security Party, the Security Trustee, each
 Lender, each Arranger and each Swap Bank, as defined in the Loan Agreement
 referred to below.

 
	
  

 	
  

 
	
 1

 	
 This Certificate relates to a loan agreement (the “Loan
 Agreement”) dated [●] 2011 and made between (1) GAS-five
 Ltd. and GAS-six Ltd. as borrowers (the “Borrowers”), (2) the banks and financial
 institutions named therein as Lenders, (3) the banks and financial
 institutions named therein as Swap Banks, (4) Nordea Bank Finland Plc, London
 Branch, ABN AMRO Bank N.V. and Citibank International Plc, Greece Branch as
 Joint Lead Arrangers and (5) Nordea Bank Finland Plc, London Branch as Agent
 and as Security Trustee for a loan facility of up to US$277,000,000.

 
	
  

 	
  

 
	
 2

 	
 In this Certificate, terms defined in the Loan Agreement shall,
 unless the contrary intention appears, have the same meanings and:

 
	
  

 	
  

 
	
  

 	
 “Relevant Parties” means the Agent, the Borrowers, each
 Security Party, the Security Trustee, each Lender, each Joint Lead Arrangers
 and each Swap Bank;

 
	
  

 	
  

 
	
  

 	
 “Transferor” means [full name] of [lending office]; and 

 
	
  

 	
  

 
	
  

 	
 “Transferee” means [full name] of [lending office].

 
	
  

 	
  

 
	
 3

 	
 The effective date of this Certificate is [●] Provided
 that this Certificate shall not come into effect unless it is
 signed by the Agent on or before that date.

 
	
  

 	
  

 
	
 4

 	
 The Transferor assigns to the Transferee absolutely all rights and
 interests (present, future or contingent) which the Transferor has as Lender
 under or by virtue of the Loan Agreement and every other Finance Document in
 relation to [●] per cent. of its Contribution, which percentage
 represents $[●].

 
	
  

 	
  

 
	
 5

 	
 By virtue of this Transfer Certificate and Clause 26 of the Loan
 Agreement, the Transferor is discharged [entirely from its Commitment which
 amounts to $[●]] [from [●] per cent. of its Commitment, which
 percentage represents $[●]] and the Transferee acquires a Commitment of
 $[●].

 
	
  

 	
  

 
	
 6

 	
 The Transferee undertakes with the Transferor and each of the
 Relevant Parties that the Transferee will observe and perform all the
 obligations under the Finance Documents which Clause 26 of the Loan Agreement
 provides will become binding on it upon this Certificate taking effect.

 
	
  

 	
  

 
	
 7

 	
 The Agent, at the request of the Transferee (which request is hereby
 made) accepts, for the Agent itself and for and on behalf of every other
 Relevant Party, this Certificate as a Transfer Certificate taking effect in
 accordance with Clause 26 of the Loan Agreement.

 
	
  

 	
  

 
	
 8

 	
 The Transferor:

 
	
  

 	
  

 
	
 (a)

 	
 warrants to the Transferee and each Relevant Party that:

 

72

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the Transferor has full capacity to enter into this transaction and
 has taken all corporate action and obtained all consents which are in
 connection with this transaction; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 this Certificate is valid and binding as regards the Transferor;

 

	
  

 	
  

 
	
 (b)

 	
 warrants to the Transferee that the Transferor is absolutely
 entitled, free of encumbrances, to all the rights and interests covered by
 the assignment in paragraph 4; and

 
	
  

 	
  

 
	
 (c)

 	
 undertakes with the Transferee that the Transferor will, at its own
 expense, execute any documents which the Transferee reasonably requests for
 perfecting in any relevant jurisdiction the Transferee’s title under this
 Certificate or for a similar purpose.

 
	
  

 	
  

 
	
 9

 	
 The Transferee:

 
	
  

 	
  

 
	
 (a)

 	
 confirms that it has received a copy of the Loan Agreement and each
 other Finance Document;

 
	
  

 	
  

 
	
 (b)

 	
 agrees that it will have no rights of recourse on any ground against
 either the Transferor, the Agent, the Security Trustee, any Lender or any
 Swap Bank in the event that:

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any of the Finance Documents prove to be invalid or ineffective,

 
	
  

 	
  

 
	
  

 	
 (ii)

 	
 any Borrower or any Security Party fails to observe or perform its
 obligations, or to discharge its liabilities, under any of the Finance
 Documents;

 
	
  

 	
  

 
	
  

 	
 (iii)

 	
 it proves impossible to realise any asset covered by a Security
 Interest created by a Finance Document, or the proceeds of such assets are
 insufficient to discharge the liabilities of the Borrowers or Security Party
 under the Finance Documents;

 
	
  

 	
  

 

	
  

 	
  

 
	
 (c)

 	
 agrees that it will have no rights of recourse on any ground against
 the Agent, the Security Trustee, any Lender or any Swap Bank in the event
 that this Certificate proves to be invalid or ineffective;

 
	
  

 	
  

 
	
 (d)

 	
 warrants to the Transferor and each Relevant Party that:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 it has full capacity to enter into this transaction and has taken all
 corporate action and obtained all consents which it needs to take or obtain
 in connection with this transaction; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 this Certificate is valid and binding as regards the Transferee; and

 

	
  

 	
  

 
	
 (e)

 	
 confirms the accuracy of the administrative details set out below
 regarding the Transferee.

 
	
  

 	
  

 
	
 10

 	
 The Transferor and the Transferee each undertake with the Agent and
 the Security Trustee severally, on demand, fully to indemnify the Agent
 and/or the Security Trustee in respect of any claim, proceeding, liability or
 expense (including all legal expenses) which they or either of them may incur
 in connection with this Certificate or any matter arising out of it, except
 such as are shown to have been mainly and directly caused by the gross and
 culpable negligence or dishonesty of the Agent’s or the Security Trustee’s
 own officers or employees.

 
	
  

 	
  

 
	
 11

 	
 The Transferee shall repay to the Transferor on demand so much of any
 sum paid by the Transferor under paragraph 10 as exceeds one-half of the
 amount demanded by the Agent or the Security Trustee in respect of a claim,
 proceeding, liability or expense which was not reasonably foreseeable at the
 date of this Certificate; but nothing in this paragraph shall affect the liability
 of each of the Transferor and the Transferee to the Agent or the Security
 Trustee for the full amount demanded by it.

 

	
  

 	
  

 
	
  [Name of Transferor]

 	
  [Name of Transferee]

 

73

	
  

 	
  

 
	
 By:

 	
 By:

 
	
  

 	
  

 
	
 Date:

 	
 Date:

 

	
  

 
	
 Agent

 
	
  

 
	
 Signed for
 itself and for and on behalf of itself as Agent and for every other Relevant
 Party

 
	
  

 
	
 NORDEA BANK FINLAND PLC, LONDON BRANCH

 
	
  

 
	
 By:

 
	
  

 
	
 Date:

 

74

Administrative
Details of Transferee

Name of Transferee:

Lending Office:

Contact Person

(Loan Administration Department):

Telephone:

Fax:

Contact Person

(Credit Administration Department):

Telephone:

Fax:

Account for payments:

	
  

 	
  

 
	
 Note:

 	
 This Transfer Certificate alone may not be sufficient to transfer a
 proportionate share of the Transferor’s interest in the security constituted
 by the Finance Documents in the Transferor’s or Transferee’s jurisdiction. It
 is the responsibility of each Lender to ascertain whether any other documents
 are required for this purpose.

 

75

SCHEDULE 6

DESIGNATION NOTICE

	
  

 	
  

 
	
 To:

 	
 Nordea Bank
 Finland Plc, London Branch 

 
	
  

 	
 8th Floor

 
	
  

 	
 City Place
 House

 
	
  

 	
 55
 Basinghall Street

 
	
  

 	
 London EC2V
 5NB

 
	
  

 	
  

 
	
 Attn:

 	
 Loans
 Administration

 

[date]

Dear Sirs

Loan
Agreement dated [●] 2011 made between (i) ourselves as
Borrowers, (ii) the Lenders, (iii) the Swap Banks, (iv) yourselves, ABN AMRO
Bank N.V. and Citibank International Plc, Greece Branch as Joint Lead Arrangers
and (v) yourselves as Agent and Security Trustee (the “Loan Agreement”)

We refer to:

	
  

 	
  

 
	
 1

 	
 the Loan
 Agreement;

 
	
  

 	
  

 
	
 2

 	
 the Master
 Agreement dated as of [●] made between ourselves and [●]; and

 
	
  

 	
  

 
	
 3

 	
 a
 Confirmation delivered pursuant to the said Master Agreement dated [●]
 and addressed by [●] to us.

 

In accordance with the terms of the Loan Agreement, we hereby give you
notice of the said Confirmation and hereby confirm that the Transaction
evidenced by it will be designated as a “Designated Transaction” for the
purposes of the Loan Agreement and the Finance Documents.

Yours faithfully

	
  

 	
  

 
	 

 	
  

 
	
  

 	
  

 
	
 for and on
 behalf of

 	
  

 
	
 GAS-FIVE LTD.

 	
  

 
	
 GAS-SIX LTD. 

 	
  

 

76

SCHEDULE 7

MANDATORY COST FORMULA

	
  

 	
  

 
	
 1

 	
 The Mandatory Cost is an addition to the interest rate to compensate
 Lenders for the cost of compliance with (a) the requirements of the Financial
 Services Authority (or any other authority which replaces all or any of its
 functions) or (b) the requirements of the European Central Bank. 

 
	
  

 	
  

 
	
 2

 	
 On the first day of each Interest Period (or as soon as possible
 thereafter) the Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender,
 in accordance with the paragraphs set out below. The Mandatory Cost will be
 calculated by the Agent as a weighted average of the Lenders’ Additional Cost
 Rates (weighted in proportion to the percentage participation of each Lender
 in the relevant Advance) and will be expressed as a percentage rate per
 annum. 

 
	
  

 	
  

 
	
 3

 	
 The Additional Cost Rate for any Lender lending from a lending office
 in a Participating Member State will be the percentage notified by that
 Lender to the Agent. This percentage will be certified by that Lender in its
 notice to the Agent to be its reasonable determination of the cost (expressed
 as a percentage of that Lender’s participation in all Advances made from that
 lending office) of complying with the minimum reserve requirements of the European
 Central Bank in respect of loans made from that lending office. 

 
	
  

 	
  

 
	
 4

 	
 The Additional Cost Rate for any Lender lending from a lending office
 in the United Kingdom will be calculated by the Agent as follows: 

 

	
  

 	
  

 	
  

 
	
  

 	
 E x 0.01

 	
 per cent. per annum 

 
	
  

 	 

 

 	
  

 
	
  

 	
 300

 	
  

 

	
  

 	
  

 
	
  

 	
 Where:

 
	
  

 	
 E         is designed to
 compensate Lenders for amounts payable under the Fees Rules and is calculated
 by the Agent as being the average of the most recent rates of charge supplied
 by the Reference Banks to the Agent pursuant to paragraph 6 below and
 expressed in pounds per £1,000,000. 

 
	
  

 	
  

 
	
 5

 	
 For the purposes of this Schedule: 

 
	
  

 	
  

 
	
 (a)

 	
 “Eligible Liabilities”
 and “Special Deposits” have the
 meanings given to them from time to time under or pursuant to the Bank of
 England Act 1998 or (as may be appropriate) by the Bank of England; 

 
	
  

 	
  

 
	
 (b)

 	
 “Fees Rules” means the
 rules on periodic fees contained in the FSA Supervision Manual or such other
 law or regulation as may be in force from time to time in respect of the
 payment of fees for the acceptance of deposits; 

 
	
  

 	
  

 
	
 (c)

 	
 “Fee Tariffs” means the
 fee tariffs specified in the Fees Rules under the activity group A.1 Deposit
 acceptors (ignoring any minimum fee or zero rated fee required pursuant to
 the Fees Rules but taking into account any applicable discount rate); 

 
	
  

 	
  

 
	
 (d)

 	
 “Participating Member State”
 means any member state of the European Union that adopts or has adopted the
 euro as its lawful currency in accordance with legislation of the European
 Union relating to European Monetary Union; and 

 
	
  

 	
  

 
	
 (e)

 	
 “Tariff Base” has the
 meaning given to it in, and will be calculated in accordance with, the Fees
 Rules. 

 
	
  

 	
  

 
	
 6

 	
 If requested by the Agent, each Reference Bank shall, as soon as
 practicable after publication by the Financial Services Authority, supply to
 the Agent, the rate of charge payable by that Reference Bank to the Financial
 Services Authority pursuant to the Fees Rules in respect of 

 

77

	
  

 	
  

 
	
  

 	
 the relevant financial year of the Financial Services Authority
 (calculated for this purpose by that Reference Bank as being the average of
 the Fee Tariffs applicable to that Reference Bank for that financial year)
 and expressed in pounds per £1,000,000 of the Tariff Base of that Reference
 Bank.

 
	
  

 	
  

 
	
 7

 	
 Each Lender shall supply any information required by the Agent for
 the purpose of calculating its Additional Cost Rate. In particular, but
 without limitation, each Lender shall supply the following information in
 writing on or prior to the date on which it becomes a Lender: 

 
	
  

 	
  

 
	
 (a)

 	
 the jurisdiction of its lending office; and 

 
	
  

 	
  

 
	
 (b)

 	
 any other information that the Agent may reasonably require for such
 purpose. 

 
	
  

 	
  

 
	
  

 	
 Each Lender shall promptly notify the Agent in writing of any change
 to the information provided by it pursuant to this paragraph.

 
	
  

 	
  

 
	
 8

 	
 The rates of charge of each Reference Bank for the purpose of E above
 shall be determined by the Agent based upon the information supplied to it
 pursuant to paragraph 6 above and on the assumption that, unless a Lender
 notifies the Agent to the contrary, each Lender’s obligations in relation to
 cash ratio deposits and special Deposits are the same as those of a typical
 bank from its jurisdiction of incorporation with a lending office in the same
 jurisdiction as its lending office. 

 
	
  

 	
  

 
	
 9

 	
 The Agent shall have no liability to any person if such determination
 results in an Additional Cost Rate which over or under compensates any Lender
 and shall be entitled to assume that the information provided by any Lender
 or Reference Bank pursuant to paragraphs 3, 6 and 7 above is true and correct
 in all respects. 

 
	
  

 	
  

 
	
 10

 	
 The Agent shall distribute the additional amounts received as a
 result of the Mandatory Cost to the Lenders on the basis of the Additional
 Cost Rate for each Lender based on the information provided by each Lender
 and each Reference Bank pursuant to paragraphs 3, 6 and 7 above. 

 
	
  

 	
  

 
	
 11

 	
 Any determination by the Agent pursuant to this Schedule in relation
 to a formula, the Mandatory Cost, an Additional Cost Rate or any amount
 payable to a Lender shall, in the absence of manifest error, be conclusive
 and binding on all parties. 

 
	
  

 	
  

 
	
 12

 	
 The Agent may from time to time, after consultation with the
 Borrowers and the Lenders, determine and notify to all parties any amendments
 which are required to be made to this Schedule in order to comply with any
 change in law, regulation or any requirements from time to time imposed by
 the Financial Services Authority or the European Central Bank (or, in any
 case, any other authority which replaces all or any of its functions) and any
 such determination shall, in the absence of manifest error, be conclusive and
 binding on all parties. 

 

78

SCHEDULE 8

FORM OF COMPLIANCE CERTIFICATE

	
  

 	
  

 
	
 To:

 	
 Nordea Bank
 Finland Plc, London Branch

 8th Floor, City Place House

 55 Basinghall Street

 London EC2V 5NB

 
	
  

 	
  

 
	
 Attn:

 	
 GasLog Ltd.,

 GAS-five Ltd. and

 GAS-six Ltd. 

 
	
  

 	
 [Date]

 

OFFICER’S CERTIFICATE

	
  

 	
  

 	
  

 
	
 This Certificate is rendered pursuant to:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 clause [11.7(e)] of the loan agreement dated [●] 2011 (as
 amended and/or supplemented from time to time, the “Loan Agreement”) and made between (i)
 GAS-five Ltd. and GAS-six Ltd., as joint and several borrowers (together, the
 “Borrowers”), (ii) certain banks
 and financial institutions, as. lenders, (iii) certain banks and financial
 institutions, as swap banks, (iv) Nordea Bank Finland Plc, ABN AMRO Bank
 N.V., and Citibank International Plc, Greece Branch, as joint lead arrangers,
 (v) Nordea Bank Finland Plc, London Branch, as agent and as security trustee;
 and 

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 clause [11.3(c)] of the guarantee dated [●] 2011 (as amended
and/or supplemented from time to time, the “GasLog Guarantee”) and executed
by GasLog Ltd. (“GasLog”), in
favour of Nordea Bank Finland Plc, London Branch, as Security Trustee.  

 
	
  

 	
  

 	
  

 
	
 Words and expressions defined in the Loan Agreement (including,
 without limitation, in clause 11.25 thereof) shall have the same meanings
 when used herein.

 
	
  

 	
  

 	
  

 
	
 We, the Chief Financial Officers of GasLog Ltd., GAS-five Ltd, and
 GAS-six Ltd., hereby certify that:

 
	
  

 	
  

 	
  

 
	
 1

 	
 Attached to this Certificate [are] [is] the latest [audited
 consolidated accounts of GasLog and its subsidiaries for the financial year
 ending on [●]] [unaudited consolidated accounts of GasLog and its
 subsidiaries in relation to the first six months of the financial year ending
 on [●]]. 

 
	
  

 	
  

 
	
 2

 	
 Attached also to this Certificate [are][is] the latest [audited
 accounts of each Borrower for the financial year ending on [●]]
 [unaudited accounts of each Borrower in relation to the first six months of
 the financial year ending on [●]]. 

 
	
  

 	
  

 
	
 3

 	
 As at the date of this Certificate the financial covenants set out in
 clause 11.25 of the Loan Agreement [are] [are not] complied with, in that as
 at [●]: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 GasLog Group’s Working Capital [is][is not] less than $0; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the aggregate amount of GasLog Group’s Cash and GasLog Group’s Cash
 Equivalents is [●] and GasLog Group’s Total Interest Bearing Debt is [●];
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the ratio of GasLog Group’s Total Debt to GasLog Group’s Total
 Capitalisation is [●] : [●]; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 GasLog Group’s Market Adjusted Net Worth is [●]; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 the ratio of GasLog Group’s EBITDA to GasLog Group’s Debt Service is
 [●] : [●]; 

 

79

	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 for GAS-five Ltd., the aggregate amount of Borrower’s Cash and
 Borrower’s Cash Equivalents is [●]; and
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 for GAS-six Ltd., the aggregate amount of Borrower’s Cash and
 Borrower’s Cash Equivalents is [●]. 

 
	
  

 	
  

 	
  

 
	
  

 	
  [or, as the case may be, specify in what
 respect any of the financial covenants are not complied with.]

 
	
  

 	
  

 	
  

 
	
 4

 	
 Attached also to this Certificate are our calculations evidencing the
 statements set out in paragraph 3 above. 

 
	
  

 	
  

 	
  

 
	
 5

 	
 Attached also to this Certificate are valuations evidencing the Fair
 Market Value of the Ships as at the date of this Certificate. 

 
	
  

 	
  

 	
  

 
	
 6

 	
 As at [•] no Potential Event of Default or Event of Default has
 occurred and is continuing. 

 
	
  

 	
  

 	
  

 
	
  

 	
  [or, specify/identify any Potential Event
 of Default or Event of Default]

 
	
  

 	
  

 	
  

 
	
 7

 	
 This Certificate shall be governed by, and construed in accordance
 with, English law. 

 

	
  

 	
  

 
	 
 	
  

 
	
 Chief Financial Officer 

 	
  

 
	
 GASLOG LTD. 

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	 

 	
  

 
	
 Chief Financial Officer 

 	
  

 
	
 GAS-FIVE LTD. 

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	 

 	
  

 
	
 Chief Financial Officer 

 	
  

 
	
 GAS-SIX LTD. 

 	
  

 

80

EXECUTION PAGE

	
  

 	
  

 
	
 BORROWERS

 	
  

 
	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Henrik Bjerregaard

 
	
 GAS-FIVE
 LTD.

 	
 )   /s/ Line Køhler Lljungdahl

 
	
 in the presence of:

 	
 )

 

	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )   /s/ Henrik Bjerregaard

 
	
 for and on behalf of

 	
 )   /s/ Line Køhler Lljungdahl

 
	
 GAS-SIX
 LTD.

 	
 )

 
	
 in the presence of:

 	
 )

 

	
  

 	
  

 
	
 LENDERS

 	
  

 
	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Tom Zachariassen

 
	
 NORDEA
 BANK FINLAND PLC,

 	
 )

 
	
 LONDON
 BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ W.P. van Aerssen

 
	
 ABN AMRO
 BANK N.V.

 	
 )   /s/ R.H.L. Ko

 
	
 in the presence of:

 	
 )   /s/ T. Slavenburg

 

	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Vassilios Maroulis

 
	
 CITIBANK
 INTERNATIONAL

 	
 )

 
	
 PLC,
 GREECE BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

81

	
  

 	
  

 
	
 JOINT LEAD
 ARRANGERS

 	
  

 
	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Tom Zachariassen

 
	
 NORDEA
 BANK FINLAND PLC,

 	
 )

 
	
 LONDON
 BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ W.P. van Aerssen

 
	
 ABN AMRO
 BANK N.V.

 	
 )   /s/ /R.H.L. Ko

 
	
 in the presence of:

 	
 )   /s/ T. Slavenburg

 

	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Vassilios Maroulis

 
	
 CITIBANK
 INTERNATIONAL

 	
 )

 
	
 PLC,
 GREECE BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

	
  

 	
  

 
	
 SWAP BANKS

 	
  

 
	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Tom Zachariassen

 
	
 NORDEA
 BANK FINLAND PLC,

 	
 )

 
	
 LONDON
 BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ W.P. van Aerssen

 
	
 ABN AMRO
 BANK N.V.

 	
 )   /s/ R.H.L. Ko

 
	
 in the presence of:

 	
 )   /s/ T. Slavenburg

 

	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Fabrizio Pasani

 
	
 CITIBANK
 N.A.,

 	
 )

 
	
 LONDON
 BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

82

	
  

 	
  

 
	
 AGENT

 	
  

 
	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Tom Zachariassen

 
	
 NORDEA
 BANK FINLAND PLC,

 	
 )

 
	
 LONDON
 BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

	
  

 	
  

 
	
 SECURITY
 TRUSTEE

 	
  

 
	
  

 	
  

 
	
 SIGNED by

 	
 )

 
	
  

 	
 )

 
	
 for and on behalf of

 	
 )   /s/ Tom Zachariassen

 
	
 NORDEA
 BANK FINLAND PLC,

 	
 )

 
	
 LONDON
 BRANCH

 	
 )

 
	
 in the presence of:

 	
 )

 

83Exhibit 10.4  

Private & Confidential 

	
  

 	
  

 	
  

 	
  

 
	
 Dated 23 December 2011

 	
  

 
	
  

 	
  

 
	
 GAS-eight Ltd., GAS-nine Ltd. and GAS-ten
 Ltd.

 	
  (1)

 
	
  

 	
  

 
	
 arranged by

 	
  

 
	
  

 	
  

 
	
 DNB BANK ASA

 	
  (2)

 
	
  

 	
  

 
	
 COMMONWEALTH BANK OF AUSTRALIA

 	
  (3)

 
	
  

 	
  

 
	
 DANISH SHIP FINANCE A/S

 	
  (4)

 
	
  

 	
  

 
	
 ING BANK N.V.

 	
  (5)

 
	
  

 	
  

 
	
 SKANDINAVISKA ENSKILDA BANKEN AB (publ)

 	
  (6)

 
	
  

 	
  

 
	
 with

 	
  

 
	
  

 	
  

 
	
 DNB BANK ASA

 	
  (7)

 
	
 as Agent

 	
  

 
	
  

 	
  

 
	
 DNB BANK ASA

 	
  (8)

 
	
 as Security Agent

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FACILITY AGREEMENT

 $435,000,000 Loan Facility

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE
TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH FIVE ASTERISKS (*****).

Contents

	
  

 	
  

 	
  

 	
  

 
	
 Clause

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 Definitions and
 interpretation

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 2

 	
 The Facility

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
 3

 	
 Purpose

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 4

 	
 Conditions of
 Utilisation

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 5

 	
 Utilisation

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 
	
 6

 	
 Repayment

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
 Illegality,
 prepayment and cancellation

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 8

 	
 Interest

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
 Interest Periods

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 10

 	
 Changes to the
 calculation of interest

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
 Fees

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 
	
 12

 	
 Tax gross-up and
 indemnities

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 13

 	
 Increased Costs

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 
	
 14

 	
 Other indemnities

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 
	
 15

 	
 Mitigation by the
 Lenders

 	
  

 	
 38

 
	
  

 	
  

 	
  

 	
  

 
	
 16

 	
 Costs and expenses

 	
  

 	
 39

 
	
  

 	
  

 	
  

 	
  

 
	
 17

 	
 Representations

 	
  

 	
 40

 
	
  

 	
  

 	
  

 	
  

 
	
 18

 	
 Information
 undertakings

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 
	
 19

 	
 General
 undertakings

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 
	
 20

 	
 Dealings with Ship

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
 21

 	
 Condition and
 operation of Ship

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 22

 	
 Insurance

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
 23

 	
 Minimum security
 value

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 
	
 24

 	
 Chartering
 undertakings

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
 25

 	
 Bank accounts

 	
  

 	
 64

 
	
  

 	
  

 	
  

 	
  

 
	
 26

 	
 Business
 restrictions

 	
  

 	
 66

 
	
  

 	
  

 	
  

 	
  

 
	
 27

 	
 Hedging Contracts

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 
	
 28

 	
 Events of Default

 	
  

 	
 70

 

	
  

 	
  

 	
  

 	
  

 
	
 29

 	
 Position of
 Hedging Providers

 	
  

 	
 75

 
	
  

 	
  

 	
  

 	
  

 
	
 30

 	
 Changes to the
 Lenders

 	
  

 	
 77

 
	
  

 	
  

 	
  

 	
  

 
	
 31

 	
 Changes to the
 Obligors

 	
  

 	
 80

 
	
  

 	
  

 	
  

 	
  

 
	
 32

 	
 Roles of Agent,
 Security Agent and Arranger

 	
  

 	
 81

 
	
  

 	
  

 	
  

 	
  

 
	
 33

 	
 Conduct of
 business by the Finance Parties

 	
  

 	
 92

 
	
  

 	
  

 	
  

 	
  

 
	
 34

 	
 Sharing among the
 Finance Parties

 	
  

 	
 94

 
	
  

 	
  

 	
  

 	
  

 
	
 35

 	
 Payment mechanics

 	
  

 	
 96

 
	
  

 	
  

 	
  

 	
  

 
	
 36

 	
 Set-off

 	
  

 	
 98

 
	
  

 	
  

 	
  

 	
  

 
	
 37

 	
 Notices

 	
  

 	
 98

 
	
  

 	
  

 	
  

 	
  

 
	
 38

 	
 Calculations and
 certificates

 	
  

 	
 100

 
	
  

 	
  

 	
  

 	
  

 
	
 39

 	
 Partial invalidity

 	
  

 	
 101

 
	
  

 	
  

 	
  

 	
  

 
	
 40

 	
 Remedies and
 waivers

 	
  

 	
 101

 
	
  

 	
  

 	
  

 	
  

 
	
 41

 	
 Amendments and
 grant of waivers

 	
  

 	
 101

 
	
  

 	
  

 	
  

 	
  

 
	
 42

 	
 Counterparts

 	
  

 	
 101

 
	
  

 	
  

 	
  

 	
  

 
	
 43

 	
 Governing law

 	
  

 	
 102

 
	
  

 	
  

 	
  

 	
  

 
	
 44

 	
 Enforcement

 	
  

 	
 102

 
	
  

 	
  

 	
  

 
	
 Schedule 1 The
 original parties

 	
  

 	
 103

 
	
  

 	
  

 	
  

 
	
 Schedule 2 Ship
 information

 	
  

 	
 108

 
	
  

 	
  

 	
  

 
	
 Schedule 3
 Conditions precedent

 	
  

 	
 110

 
	
  

 	
  

 	
  

 
	
 Schedule 4
 Utilisation Request

 	
  

 	
 117

 
	
  

 	
  

 	
  

 
	
 Schedule 5
 Selection Notice

 	
  

 	
 118

 
	
  

 	
  

 	
  

 
	
 Schedule 6
 Mandatory Cost Formulae

 	
  

 	
 119

 
	
  

 	
  

 	
  

 
	
 Schedule 7 Form of
 Transfer Certificate

 	
  

 	
 122

 

THIS AGREEMENT is dated 23 December 2011 and made
between: 

	
  

 	
  

 
	
 (1)

 	
 THE
 ENTITIES listed in Schedule 1 as borrowers (the Borrowers);

 
	
  

 	
  

 
	
  (2) 

 	
 DNB BANK ASA, COMMONWEALTH BANK OF
 AUSTRALIA, DANISH SHIP FINANCE A/S, ING BANK N.V. and SKANDINAVISKA ENSKILDA BANKEN AB (publ) as mandated lead
 arrangers (whether acting individually or together, the Arrangers); 

 
	
  

 	
  

 
	
 (3)

 	
 THE
 FINANCIAL INSTITUTIONS listed in Schedule 1 as lenders (the Original Lenders);

 
	
  

 	
  

 
	
 (4)

 	
 THE
 FINANCIAL INSTITUTIONS listed in Schedule 1 as hedging providers (the Hedging Providers)

 
	
  

 	
  

 
	
  (5) 

 	
 DNB
 BANK ASA as bookrunner (the Bookrunner);

 
	
  

 	
  

 
	
  (6) 

 	
 DNB
 BANK ASA as agent for the other Finance Parties (the Agent); and 

 
	
  

 	
  

 
	
  (7) 

 	
 DNB
 BANK ASA as security agent for the other Finance Parties (the Security Agent). 

 

IT IS AGREED as follows: 

SECTION 1 - INTERPRETATION

	
  

 	
  

 	
  

 
	
 1

 	
  

 	
 Definitions and interpretation 

 
	
  

 	
  

 	
  

 
	
 1.1

 	
  

 	
 Definitions 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this Agreement and (unless otherwise defined in the relevant
 Finance Document) the other Finance Documents: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account means any bank account, deposit
 or certificate of deposit opened, made or established in accordance with
 clause 25 (Bank accounts). 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account Bank means, in relation to any
 Account, the Account Bank described in Schedule 1 (The Original Parties). 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account Holder(s) means in relation to any Account,
 the Borrower(s) in whose name(s) that Account is held. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account Security means, in relation to an Account,
 a deed or other instrument by the relevant Account Holder in favour of the
 Security Agent in an agreed form conferring a Security Interest over that
 Account. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Accounting Reference Date means 31 December 2010 or such
 other date as may be approved. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Additional Cost Rate has the meaning given to it in
 Schedule 6 (Mandatory Cost formulae). 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Advance means each borrowing of a
 proportion of the Total Commitments by the Borrowers or (as the context may
 require) the outstanding principal amount of such borrowing. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Advance A means an advance of the Total
 Commitments up to the lesser of (a) $143,000,000 and (b) 70% of the Delivery
 Price of Ship A on the Utilisation Date relative to Advance A or (as the
 context may require) the outstanding principal amount of such borrowing. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Advance B means an advance of the Total
 Commitments up to the lesser of (a) $146,000,000 and (b) 70% of the Delivery
 Price of Ship B on the Utilisation Date relative to Advance B or (as the
 context may require) the outstanding principal amount of such borrowing. 

 

1

	
  

 	
  

 
	
  

 	
 Advance C means an advance of the Total Commitments
 up to the lesser of (a) $146,000,000 and (b) 70% of the Delivery Price of
 Ship C on the Utilisation Date relative to Advance C or (as the context may
 require) the outstanding principal amount of such borrowing. 

 
	
  

 	
  

 
	
  

 	
 Affiliate means, in relation to any person,
 a Subsidiary of that person or a Holding Company of that person or any other
 Subsidiary of that Holding Company.

 
	
  

 	
  

 
	
  

 	
 Agent includes any person who may be
 appointed as agent under this Agreement. 

 
	
  

 	
  

 
	
  

 	
 Applicable Law means: 

 
	
  

 	
  

 
	
  

 	
 (a) in relation to any jurisdiction, any law, regulation, treaty,
 directive, decision, rule, regulatory requirement, judgment, order,
 ordinance, request, guideline or direction or any other act of any Government
 Entity of such jurisdiction whether or not having the force of law and with
 which any Party is required to comply, or with which it would, in the normal
 course of its business, comply; and 

 
	
  

 	
  

 
	
  

 	
 (b) in relation to any Lender, any Basel II Regulation applicable to
 that Lender. 

 
	
  

 	
  

 
	
  

 	
 Approved Exchange means NYSE, NASDAQ or any other
 reputable stock exchange agreed by GasLog and the Majority Lenders. 

 
	
  

 	
  

 
	
  

 	
 Auditors means one of Moore Stephens,
 PricewaterhouseCoopers, Ernst & Young, KPMG or Deloitte & Touche or
 another approved firm. 

 
	
  

 	
  

 
	
  

 	
 Available Facility means, at any relevant time, such
 part of the Total Commitments (drawn and undrawn) which is available for
 borrowing under this Agreement at such time in accordance with clause 4 (Conditions of Utilisation). 

 
	
  

 	
  

 
	
  

 	
 Basel II Accord means the “International Convergence
 of Capital Measurement and Capital Standards, a Revised Framework” published
 by the Basel Committee on Banking Supervision in June 2004 and updated prior
 to, and in the form existing on, the date of this Agreement, excluding any
 amendment thereto arising out of the Basel III Accord. 

 
	
  

 	
  

 
	
  

 	
 Basel II Approach means, in relation to any Lender,
 either the Standardised Approach or the relevant Internal Ratings Based
 Approach (each as defined in the Basel II Accord) adopted by that Lender (or
 any of its Affiliates) for the purposes of implementing or complying with the
 Basel II Accord. 

 
	
  

 	
  

 
	
  

 	
 Basel II Increased Cost means an Increased Cost which is
 attributable to the implementation or application of or compliance with any
 Basel II Regulation in force as at the date hereof (whether such
 implementation, application or compliance is by a government, regulator,
 Finance Party or any of its Affiliates). 

 
	
  

 	
  

 
	
  

 	
 Basel II Regulation means: 

 
	
  

 	
  

 
	
  

 	
 (a) any Applicable Law in force as at the date hereof implementing
 the Basel II Accord; or 

 
	
  

 	
  

 
	
  

 	
 (b) any Basel II Approach adopted by the Lender, 

 
	
  

 	
  

 
	
  

 	
 but excludes any Applicable Law implementing the Basel III Accord
 save and to the extent that it is a re-enactment of any Applicable Law
 referred to in paragraph (a) of this definition. 

 
	
  

 	
  

 
	
  

 	
 Basel III Accord means, together, “Basel III: A
 global regulatory framework for more resilient banks and banking systems” and
 “Basel III: International framework for liquidity risk measurement, standards
 and monitoring” both published by the Basel Committee on Banking Supervision
 on 16 December 2010. 

 

2

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Basel III Increased Cost means an Increased Cost which is
 attributable to the implementation or application of or compliance with any
 Basel III Regulation (whether such implementation, application or compliance
 is by a government, regulator, Finance Party or any of its Affiliates). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Basel III Regulation means any Applicable Law
 implementing the Basel III Accord save and to the extent that it re-enacts a
 Basel II Regulation. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Break Costs means the amount (if any) by
 which: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the interest which a Lender should have received for the period from
 the date of receipt of all or any part of its participation in the Loan or
 Unpaid Sum to the last day of the current Interest Period in respect of the
 Loan or Unpaid Sum had the principal amount or Unpaid Sum received been paid
 on the last day of that Interest Period; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 exceeds:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the amount which that Lender would be able to obtain by placing an
 amount equal to the principal amount or Unpaid Sum received by it on deposit
 with a leading bank in the Interbank Market for a period starting on the
 Business Day following receipt or recovery and ending on the last day of the
 current Interest Period. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Bareboat Charter has the meaning given to it in
 clause 24.8 (Substitution of the Charter
 by a bareboat charterer). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Builder means, in relation to a Ship, the
 person specified as such in Schedule 2 (Ship
 information). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Building Contract means, in relation to a Ship, the
 shipbuilding contract specified in Schedule 2 (Ship information) between the Builder and the relevant
 Owner relating to the
 construction of such Ship and as may further be supplemented, amended or
 varied in accordance with the terms thereof. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Building Contract Documents means, in relation to a Ship, the
 Building Contract and any other guarantee or security given to any person for
 the Builder’s obligations under the Building Contract for such Ship. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Business Day means a day (other than a
 Saturday or Sunday) on which banks are open for general business in London,
 Copenhagen, Stockholm, Monaco, Piraeus and (in relation to any date for
 payment or purchase of dollars) New York City. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Change of Control occurs, at any time before an IPO
 is completed: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 when the current beneficial owners of the Counter Guarantors cease to
 own legally and/or beneficially and, either directly or indirectly, at least
 70% of the issued share capital of GasLog; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 when the Counter Guarantors cease to have the right or the ability to
 control, either directly or indirectly, the affairs or composition of the
 majority of the board of directors (or equivalent) of GasLog; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 if there is a change of 15% or more in the shareholding of, or in the
 voting rights relative to, Counter Guarantor A from that described to the
 Lenders on or before the date of this Agreement, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 in any case, without the prior written consent of the Agent (acting
 on the instructions of the Lenders). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Charged Property means all of the assets of the
 Obligors which from time to time are, or are expressed or intended to be, the
 subject of the Security Documents. 

 

3

	
  

 	
  

 	
  

 
	
  

 	
 Charter means, in relation to a Ship, the
 charter commitment for that Ship details of which are provided in Schedule 2
 (Ship information). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Charter Documents means, in relation to a Ship, the
 Charter or a Replacement Charter for that Ship, any documents supplementing
 it and any guarantee or security given by any person for the relevant
 Charterer’s obligations under it. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Charter Assignment means an assignment by the
 relevant Owner of its interest in the Charter Documents in favour of the
 Security Agent in the agreed form. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Charterer means, in relation to a Ship, the
 charterer named in Schedule 2 (Ship
 information) as charterer of that Ship, or such other charterer of
 that Ship under a Replacement Charter. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Classification means, in relation to a Ship, the
 classification specified in respect of such Ship in Schedule 2 (Ship information) with the relevant
 Classification Society or another classification approved by the Lenders as
 its classification, at the request of the relevant Owner. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Classification Society means, in relation to a Ship, the
 classification society specified in Schedule 2 (Ship information) or another classification society
 approved by the Lenders as its Classification Society, at the request of the
 relevant Owner. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Commitment means: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in relation to an Original Lender, the amount set opposite its name
 under the heading “Commitment” in Schedule 1 (The original parties) and the amount of any other
 Commitment transferred to it under this Agreement; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in relation to any other Lender, the amount of any Commitment
 transferred to it under this Agreement, 

 
	
  

 	
  

 	
  

 
	
  

 	
 to the extent not cancelled, reduced or transferred by it under this
 Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Confirmation shall have, in relation to any
 Hedging Transaction, the meaning given to it in a Hedging Master Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Constitutional Documents means, in respect of an Obligor,
 such Obligor’s memorandum and articles of association, bye-laws or other
 constitutional documents including as referred to in any certificate relating
 to an Obligor delivered pursuant to Schedule 3 (Conditions precedent). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Contract Price means, in relation to a Ship, the
 price of the Ship payable under the Building Contract for such Ship. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Counter Guarantees means each of the counter
 guarantees, executed by a Counter Guarantor in favour of the Security Agent
 in the agreed form and Counter Guarantee means
 any of them. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Counter Guarantor A means a person (other than
 Counter Guarantor B) acceptable to the Lenders at their discretion which may
 now or at any time throughout the Facility Period guarantee the obligations
 and liabilities of the Obligors to the Lenders and the Hedging Providers and
 which is designated to be the “Counter Guarantor A” in the Counter Guarantee
 executed by it. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Counter Guarantor B means a person (other than
 Counter Guarantor A) acceptable to the Lenders at their discretion which may
 now or at any time throughout the Facility Period guarantee the obligations
 and liabilities of the Obligors to the Lenders and the Hedging Providers and
 which is designated to be the “Counter Guarantor B” in the Counter Guarantee
 executed by it. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Counter Guarantors means together, the Counter
 Guarantor A and the Counter Guarantor B and Counter
 Guarantor means any of them. 

 

4

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Debt Service means, in relation to each Excess
 Cash Calculation Period, the sum (calculated by the Agent pursuant to clause
 19.12 (Excess Cash recapture))
 to be the aggregate amount of principal, interest thereon and all other
 amounts which shall fall due and will be paid by the Borrowers to the Finance
 Parties under this Agreement and the other Finance Documents during that
 Excess Cash Calculation Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Deed of Covenant means, in relation to a Ship, a
 first deed of covenant by the relevant Owner in favour of the Security Agent
 in the agreed form. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Default means an Event of Default or any
 event or circumstance which would (with the expiry of a grace period, the
 giving of notice, the making of any determination under the Finance Documents
 or any combination of them) be an Event of Default. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Defaulting Lender means any Lender: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 which has failed to make its participation in an Advance available or
 has notified the Agent that it will not make its participation in an Advance
 available by the Utilisation Date of that Advance in accordance with clause
 5.4 (Lenders’ participation); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 which has otherwise rescinded or repudiated a Finance Document; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 with respect to which an Insolvency Event has occurred and is
 continuing, 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 unless, in the case of paragraph (a) above:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 its failure to pay is caused by: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 administrative or technical error; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 a Disruption Event; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 payment is made within three Business Days of its due date; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 the Lender is disputing in good faith whether it is contractually
 obliged to make the payment in question. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery means, in relation to a Ship, the
 delivery and acceptance of the Ship by the relevant Owner under the relevant
 Building Contract. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery Date means, in relation to a Ship, the
 date on which the relevant Ship is delivered to the relevant Owner
 pursuant to the relevant Building Contract. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery Instalment means, in relation to a Ship, the
 instalment of the Contract Price for such Ship falling due on its Delivery. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery Price means, in relation to a Ship, the
 actual cost of purchase, acquisition and delivery of that Ship by the
 relevant Owner under the relevant Building Contract, an estimate of which is
 set out for that Ship in Schedule 2 (Ship
 information). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Disruption Event means either or both of: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 a material disruption to those payment or communications systems or
 to those financial markets which are, in each case, required to operate in
 order for payments to be made in connection with the Facility (or otherwise
 in order for the transactions contemplated by the Finance Documents to be
 carried out) which disruption is not caused by, and is beyond the control of,
 any of the Parties; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the occurrence of any other event which results in a disruption (of a
 technical or systems-related nature) to the treasury or payments operations
 of a Party preventing that, or any other Party: 

 

5

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 from performing its payment obligations under the Finance Documents;
 or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 from communicating with other Parties in accordance with the terms of
 the Finance Documents, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (and which (in either such case)) is not caused by, and is beyond the
 control of, the Party whose operations are disrupted. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Earnings means, in relation to a Ship and
 a person, all money at any time payable to that person for or in relation to
 the use or operation of such Ship including freight, hire and passage moneys,
 money payable to that person for the provision of services by or from such
 Ship or under any charter commitment, requisition for hire compensation,
 remuneration for salvage and towage services, demurrage and detention moneys
 and damages for breach and payments for termination or variation of any
 charter commitment. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Enforcement Costs means any costs, expenses,
 liabilities or other amounts in respect of which any amount is payable under
 clauses 14.4 (Indemnity concerning
 security) or 16.3 (Enforcement
 and preservation costs) or under any other Finance Document to
 which those provisions apply and any remuneration payable to a Receiver in
 connection with any Security Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Environmental Claims means: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 enforcement, clean-up, removal or other governmental or regulatory
 action or orders or claims instituted or made pursuant to any Environmental
 Laws or resulting from a Spill; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any claim made by any other person relating to a Spill. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Environmental Incident means any Spill from any Fleet
 Vessel in circumstances where:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 any Fleet Vessel or its owner, operator or manager may be liable for
 Environmental Claims arising from the Spill (other than Environmental Claims
 arising and fully satisfied before the date of this Agreement); and/or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any Fleet Vessel may be arrested or attached in connection with any
 such Environmental Claim. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Environmental Laws means all laws, regulations and
 conventions concerning pollution or protection of human health or the
 environment. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Event of Default means any event or circumstance
 specified as such in clause 28 (Events of
 Default). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Excess Cash means, in relation to each Excess
 Cash Calculation Period, the amount (calculated by the Agent pursuant to
 clause 19.12 (Excess Cash recapture))
 which is equal to: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the Earnings paid to the Owners during such Excess Cash Calculation
 Period, minus; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the Debt Service for such Excess Cash Calculation Period, minus; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the total voyage and operating expenses and costs (including, without
 limitation, maintenance costs, crew wages, insurance costs, and overhead
 expenses but excluding any extraordinary items) in relation to the Ships and
 the total cost of any intermediate or special survey for the Ships, paid by
 the Owners during such Excess Cash Calculation Period as may be requested by
 the Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Excess Cash Calculation Period means, in respect of a Ship, each
 of the three month periods commencing on the first Repayment Date after the
 date falling 18 months before the expiry of that Ship’s Charter.

 

6

	
  

 	
  

 	
  

 
	
  

 	
 Facility means the term loan facility made
 available under this Agreement as described in clause 2 (The Facility). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Facility Office means the office or offices
 notified by a Lender to the Agent in writing on or before the date it becomes
 a Lender (or, following that date, by not less than five Business Days’
 written notice) as the office through which it will perform its obligations
 under this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Facility Period
 means the period from and including the date of this Agreement to and
 including the date on which the Total Commitments have reduced to zero and
 all indebtedness of the Obligors under the Finance Documents has been fully
 paid and discharged. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Fee Letter means any letter dated on or
 about the date of this Agreement between the Arrangers and the Borrowers (or
 the Agent and the Borrowers) setting out any of the fees referred to in
 clause 11 (Fees). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Final Repayment Date means, subject to clause 35.7 (Business Days): 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in respect of Advance A, the earlier of (i) 17 October 2021 and (ii)
 the date 84 months after the date on which the Ship Commitment relating to
 Ship A becomes available for borrowing in accordance with clause 4 (Conditions for Utilisation); 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in respect of Advance B, the earlier of (i) 19 July 2022 and (ii) the
 date 84 months after the date on which the Ship Commitment relating to Ship B
 becomes available for borrowing in accordance with clause 4 (Conditions for Utilisation); 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 in respect of Advance C, the earlier of (i) 16 September 2022 and
 (ii) the date 84 months after the date on which the Ship Commitment relating
 to Ship C becomes available for borrowing in accordance with clause 4 (Conditions for Utilisation). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Finance Documents means this Agreement, any Fee
 Letter, the Hedging Contracts, the Hedging Master Agreement, the Security
 Documents, any Transfer Certificate and any other document designated as such
 by the Agent and the Borrowers. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Finance Party means the Agent, the Security
 Agent, any Arranger, the Hedging Providers or a Lender. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Financial Indebtedness means any indebtedness for or in
 respect of: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 moneys borrowed; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any amount raised by acceptance under any acceptance credit facility
 or dematerialised equivalent; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any amount raised pursuant to any note purchase facility or the issue
 of bonds, notes, debentures, loan stock or any similar instrument; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 the amount of any liability in respect of any lease or hire purchase
 contract which would, in accordance with GAAP, be treated as a finance or
 capital lease; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 any Treasury Transaction (and, when calculating the value of that
 Treasury Transaction, only the marked to market value shall be taken into
 account); 

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 any counter-indemnity obligation in respect of a guarantee, bond,
 standby or documentary letter of credit or any other instrument issued by a
 bank or financial institution; 

 

7

	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 any amount of any liability under an advance or deferred purchase
 agreement if (a) one of the primary reasons behind entering into the
 agreement is to raise finance or (b) the agreement is in respect of the
 supply of assets or services and payment is due more than 180 days after the
 date of supply; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any amount raised under any other transaction (including any forward
 sale or purchase agreement) having the commercial effect of a borrowing; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 the amount of any liability in respect of any guarantee for any of
 the items referred to in paragraphs (a) to (i) above. 

 
	
  

 	
  

 	
  

 
	
  

 	
 First Repayment Date means, in respect of each
 Advance, subject to clause 35.7 (Business
 Days), the earlier of: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the date falling three months after the Last Availability Date; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the date falling three months after the Utilisation Date relative to
 such Advance. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Flag State means, in relation to a Ship, the
 country specified in respect of such Ship in Schedule 2 (Ship information), or such other state
 or territory as may be approved by the Lenders, at the request of the
 relevant Owner, as being the “Flag State”
 of such Ship for the purposes of the Finance Documents. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Fleet Vessel means each Ship and any other
 vessel directly or indirectly owned by any Obligor. 

 
	
  

 	
  

 	
  

 
	
  

 	
 GAAP means International Accounting
 Standards, International Financial Reporting Standards and related
 interpretations as amended, supplemented, issued or adopted from time to time
 by the International Accounting Standards Board to the extent applicable to
 the relevant financial statements. 

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog means the company described as
 such in Schedule 1 (The original parties).
 

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog Carriers means the company described as
 such in Schedule 1 (The original parties).
 

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog Charter Assignment means an assignment by the GasLog
 of its interest in the relevant Charter Documents in favour of the Security
 Agent in the agreed form. 

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog Guarantee means the guarantee, executed by
 GasLog in favour of the Security Agent in the agreed form. 

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog Carriers Guarantee means the guarantee, executed by
 GasLog Carriers in favour of the Security Agent in the agreed form. 

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog LNG means the company described as
 such in Schedule 1 (The Original Parties).

 
	
  

 	
  

 	
  

 
	
  

 	
 Group means a Counter Guarantor and its
 Subsidiaries for the time being and, for the purposes of clause 18.1 (Financial statements) or clause 5 of
 each of the Counter Guarantees (Financial
 Covenants), any other entity required to be treated as a
 subsidiary in its consolidated accounts in accordance with GAAP and/or any
 applicable law. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Guarantees means the GasLog Guarantee and the
 GasLog Carriers Guarantee and Guarantee means
 any of them.

 
	
  

 	
  

 	
  

 
	
  

 	
 Guarantors means persons acceptable to the
 Lenders at their discretion which may now or at any time throughout the
 Facility Period guarantee the obligations and liabilities of the Borrowers to
 the Lenders and the Hedging Providers (including, without limitation, GasLog
 and GasLog Carriers). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Hedging Contract means any Hedging Transaction
 between one or more of the Borrowers and a Hedging Provider pursuant to a
 Hedging Master Agreement and includes a Hedging Master 

 

8

	
  

 	
  

 	
  

 
	
  

 	
 Agreement and any Confirmations from time to time exchanged under it
 and governed by its terms relating to that Hedging Transaction and any
 contract in relation to such a Hedging Transaction constituted and/or
 evidenced by them and Hedging Contracts means all of them. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Hedging Contract Security means a deed or other instrument
 by the Borrowers in favour of the Security Agent in the agreed form
 conferring a Security Interest over any Hedging Contracts. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Hedging Exposure means, as at any relevant date,
 the aggregate of the amount certified by the Hedging Providers to the Agent
 to be the net amount in dollars (a) in relation to all Hedging Contracts that
 have been closed out on or prior to the relevant date, that is due and owing
 by the Borrowers to the Hedging Providers in respect of such Hedging
 Contracts on the relevant date and (b) in relation to all Hedging Contracts
 that are continuing on the relevant date, that would be payable by the
 Borrowers to the Hedging Providers under (and calculated in accordance with)
 the early termination provisions of the Hedging Contracts as if an Early
 Termination Date (as defined in the Hedging Master Agreement) had occurred on
 the relevant date in relation to all such continuing Hedging Contracts. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Hedging Master Agreements means the agreements made or (as
 the context may require) to be made between the Borrowers and each of the
 Hedging Providers each comprising an ISDA Master Agreement and Schedule
 thereto and any credit support agreement in the agreed form and Hedging Master Agreement means any of
 them. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Hedging Transaction has, in relation to any Hedging
 Master Agreement, the meaning given to the term “Transaction” in that Hedging
 Master Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Holding Company means, in relation to a company
 or corporation, any other company or corporation in respect of which it is a
 Subsidiary. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Increased Costs has the meaning given to it in
 clause 13.1 (Increased Costs). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Indemnified Person means: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 each Finance Party and each Receiver and any attorney, agent or other
 person appointed by them under the Finance Documents; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 each Affiliate of those persons; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any officers, employees or agents of any of the above persons. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Insolvency Event in relation to a Finance Party
 means that the Finance Party: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 is dissolved (other than pursuant to a consolidation, amalgamation or
 merger); 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 becomes insolvent or is unable to pay its debts or fails or admits in
 writing its inability generally to pay its debts as they become due; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 makes a general assignment, arrangement or composition with or for
 the benefit of its creditors; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 institutes or has instituted against it, by a regulator, supervisor
 or any similar official with primary insolvency, rehabilitative or regulatory
 jurisdiction over it in the jurisdiction of its incorporation or organisation
 or the jurisdiction of its head or home office, a proceeding seeking a
 judgment of insolvency or bankruptcy or any other relief under any bankruptcy
 or insolvency law or other similar law affecting creditors’ rights, or a
 petition is presented for its winding up or liquidation by it or such
 regulator, supervisor or similar official; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 has instituted against it a proceeding seeking a judgment of insolvency
 or bankruptcy or any other relief under any bankruptcy or insolvency law or
 other similar law affecting creditors’ rights, or a petition is presented for
 its winding up or liquidation, and, in the case of any such proceeding or
 petition instituted or presented against it, such proceeding or 

 

9

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 petition is instituted or presented by a person or entity not
 described in paragraph (d) above and: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 results in a judgment of insolvency or bankruptcy or the entry of an
 order for relief or the making of an order for its winding up or liquidation;
 or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 is not dismissed, discharged, stayed or restrained in each case
 within 30 days of the institution or presentation thereof; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 has exercised in respect of it one or more of the stabilisation
 powers pursuant to Part 1 of the Banking Act 2009 and/or has instituted
 against it a bank insolvency proceeding pursuant to Part 2 of the Banking Act
 2009 or a bank administration proceeding pursuant to Part 3 of the Banking
 Act 2009; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 has a resolution passed for its winding up, official management or
 liquidation (other than pursuant to a consolidation, amalgamation or merger);
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 seeks or becomes subject to the appointment of an administrator,
 provisional liquidator, conservator, receiver, trustee, custodian or other
 similar official for it or for all or substantially all its assets; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 has a secured party take possession of all or substantially all its
 assets or has a distress, execution, attachment, sequestration or other legal
 process levied, enforced or sued on or against all or substantially all its
 assets and such secured party maintains possession, or any such process is
 not dismissed, discharged, stayed or restrained, in each case within 30 days
 thereafter; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 causes or is subject to any event with respect to it which, under the
 applicable laws of any jurisdiction, has an analogous effect to any of the
 events specified in paragraphs (a) to (i) above; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 takes any action in furtherance of, or indicating its consent to,
 approval of, or acquiescence in, any of the foregoing acts. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Insurance Notice means, in relation to a Ship, a
 notice of assignment in the form scheduled to such Ship’s Deed of Covenant or
 in another approved form. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Insurances means, in relation to a Ship: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 all policies and contracts of insurance; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 all entries in a protection and indemnity or war risks or other
 mutual insurance association 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 in the name of such Ship’s owner or the joint names of its owner and
 any other person in respect of or in connection with such Ship and/or its
 owner’s Earnings from the Ship and includes all benefits thereof (including
 the right to receive claims and to return of premiums). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Interbank Market means the London interbank
 market. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Interest Period means, in relation to the Loan,
 each period determined in accordance with clause 9 (Interest Periods) and, in relation to an
 Unpaid Sum, each period determined in accordance with clause 8.3 (Default interest). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 IPO means the initial public offering
 of shares of common stock of GasLog on an Approved Exchange. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 IPO Change of Control means if, at any time after an
 IPO has been completed: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the current beneficial owners of the Counter Guarantors fail to
 maintain, in aggregate, legally and/or beneficially, and either directly or
 indirectly, at least: 

 

10

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	 	
 (i)

 	
 from the date when the IPO is completed until the date falling 12
 months thereafter (the First Anniversary),
 30%; 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
  

 	 	
 (ii)

 	
 from the First Anniversary until the date falling 12 months
 thereafter (the Second Anniversary),
 25%; 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
  

 	 	
 (iii)

 	
 from the Second Anniversary until the date falling 12 months
 thereafter (the Third Anniversary),
 20%; and 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
  

 	 	
 (iv)

 	
 from the Third Anniversary and at all other times thereafter, 15%, 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
  

 	
 of the issued share capital of GasLog (or such other public vehicle
 owning the Borrowers); or 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 (b)

 	
 the current beneficial owners of the Counter Guarantors cease to be, in
 aggregate, the largest direct or indirect shareholders of the Guarantors or
 the Borrowers (with the exception of any passive financial institution) or
 cease to have the right or the ability to control, either directly or
 indirectly, the affairs or composition of the majority of the board of
 directors (or equivalent) of GasLog (or such other public vehicle owning the
 Borrowers); or 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 (c)

 	
 there is a change of 15% or more in the shareholding of, or in the
 voting rights relative to, Counter Guarantor A from that described to the
 Lenders on or before the date of this Agreement, 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 in any case without the prior written consent of the Agent (acting
 with the authorisation of the Lenders). 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 Last Availability Date means, in respect of each Advance,
 200 days after the Scheduled delivery date for the relevant Ship (as set out
 in Schedule 2 (Ship information))
 relating to that Advance under the Building Contract for that Ship (or such
 later date as may be approved by the Lenders). 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 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; and 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 (c)

 	
 similar principles, rights and defences under the laws of any
 Relevant Jurisdiction. 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 Lender means:

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 (a)

 	
 any Original Lender;
 and

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 (b)

 	
 any bank, financial institution, trust, fund or other entity which
 has become a Party in accordance with clause 30 (Changes to the Lenders), 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 which in each case has not ceased to be a Party in accordance with
 the terms of this Agreement. 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 LIBOR means, in relation to the Loan or
 any part of it or any Unpaid Sum: 

 
	
  

 	
  

 	 	
  

 	
  

 
	
  

 	
 (a)

 	
 the applicable Screen Rate; or 

 

11

	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 (if no Screen Rate is available for the relevant Interest Period) the
 arithmetic mean of the rates (rounded upwards to four decimal places) as
 supplied to the Agent at its request quoted by the Reference Banks to leading
 banks in the Interbank Market, 

 
	
  

 	
  

 	
  

 
	
  

 	
 as of 11:00 a.m. on the Quotation Day for the offering of deposits in
 dollars for a period comparable to the Interest Period for the Loan or
 relevant part of it or Unpaid Sum and, if any such rate is below zero, LIBOR
 will be deemed to be zero. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Loan means the loan made or to be made
 under the Facility or the principal amount outstanding for the time being of
 that loan. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Losses means any costs, expenses,
 payments, charges, losses, demands, liabilities, claims, actions,
 proceedings, penalties, fines, damages, judgments, orders or other sanctions.
 

 
	
  

 	
  

 	
  

 
	
  

 	
 Loss Payable Clauses means, in relation to a Ship, the
 provisions concerning payment of claims under the Ship’s Insurances in the
 form scheduled to such Ship’s Deed of Covenant or in another approved form. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Major Casualty means any casualty to a vessel
 for which the total insurance claim, inclusive of any deductible, exceeds or
 may exceed the Major Casualty Amount. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Major Casualty Amount means $3,000,000 (or the
 equivalent in any other currency). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Majority Lenders means a Lender or Lenders whose
 Commitments aggregate more than 662⁄3% of the Total Commitments (or, if
 the Total Commitments have been reduced to zero, aggregated more than 662⁄3% of the Total Commitments
 immediately prior to the reduction).

 
	
  

 	
  

 	
  

 
	
  

 	
 Manager means collectively, (a) GasLog
 LNG in its capacity as technical manager appointed by the relevant Owner of a
 Ship, (b) GasLog in its capacity as commercial manager appointed by the
 relevant Owner of a Ship and (c) any other manager appointed by the relevant
 Owner in accordance with clause 20.3 (Manager).
 

 
	
  

 	
  

 	
  

 
	
  

 	
 Manager’s Undertaking means, in relation to a Ship, an
 undertaking by any manager of the Ship to the Security Agent in the agreed
 form pursuant to clause 20.3 (Manager).
 

 
	
  

 	
  

 	
  

 
	
  

 	
 Mandatory Cost means the percentage rate per
 annum calculated by the Agent in accordance with Schedule 6 (Mandatory Cost formulae). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Margin means 2.25% per annum. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Material Adverse Effect means, in the reasonable opinion
 of the Majority Lenders, a material adverse effect on: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the business, operations, property or condition (financial or
 otherwise) of any of the Obligors or a Group taken as a whole, which
 prejudices the ability of an Obligor to perform its obligations under the
 Finance Documents; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the validity or enforceability of, or the effectiveness or ranking of
 any Security Interest granted or purporting to be granted pursuant to any of,
 the Finance Documents or the rights or remedies of any Finance Party under
 any of the Finance Documents. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Minimum Value means the amount in dollars which
 is at that time 120% of the aggregate of (a) the Loan and (b) the Hedging
 Exposure at that time. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Mortgage means, in relation to a Ship, a
 first mortgage of the Ship in the agreed form by the relevant Owner in favour of the
 Security Agent. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Mortgage Period means, in relation to a Ship, the
 period from the date the Mortgage over such Ship is executed and registered
 until the date such Mortgage is released and discharged or the Total Loss
 Repayment Date. 

 

12

	
  

 	
  

 	
  

 
	
  

 	
 Obligors means the parties to the Finance
 Documents (other than Finance Parties and the Managers) and Obligor means any one of them. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Original Financial Statements means: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the audited consolidated financial statements of a Group for its
 financial year ended 31 December 2010; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the audited financial statements of each of the Guarantors and each
 of the Counter Guarantors for their respective financial years ended 31
 December 2010. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Original Obligor means each party to this
 Agreement and the Original Security Documents (other than a Finance Party and
 the Manager). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Original Security Documents means: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the Counter Guarantees and the Guarantees; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the Mortgage over each of the Ships; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the Deed of Covenant in relation to each of the Ships; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 the Hedging Contract Security; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 the Share Security in relation to each Borrower; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 the Charter Assignment in relation to each Ship’s Charter Documents; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 the GasLog Charter Assignment in relation to each Ship’s relevant
 Charter Documents; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 the Account Security; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any Manager’s Undertaking in relation to a Ship if required under
 clause 20.3 (Manager); and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 the Quiet Enjoyment Agreement in relation to each of the Ships. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Owner means, in relation to a Ship, the
 Borrower specified against the name of such Ship in Schedule 2 (Ship information). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Participating Member State means any member state of the
 European Community that adopts or has adopted the euro as its lawful currency
 in accordance with legislation of the European Community relating to Economic
 and Monetary Union. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Party means a party to this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Permitted Maritime Liens means, in relation to a vessel: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 unless a Default is continuing, any ship repairer’s or outfitter’s
 possessory lien in respect of such vessel for an amount not exceeding the
 Major Casualty Amount for such Ship; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any lien on such vessel for master’s, officer’s or crew’s wages
 outstanding in the ordinary course of its trading; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 liens for master’s disbursements incurred in the ordinary course of
 business and any other lien arising by operation of law in the ordinary
 course of the business, repair or maintenance of such vessel, and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 any lien on such vessel for salvage, 

 

13

	
  

 	
  

 	
  

 
	
  

 	
 each securing obligations not more than 30 days overdue. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Permitted Security Interests means, in relation to any Ship, any Security Interest over it which is:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 granted under the Finance Documents; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 a Permitted Maritime Lien; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any Security Interest created in favour of a claimant or defendant in
 any proceedings or arbitration as security for costs and expenses while a
 Borrower is actively pursuing a claim or defending such proceedings or
 arbitration in good faith; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 any Security Interest arising by operation of law in respect of taxes
 which are not overdue for payment or in respect of taxes being contested in
 good faith by appropriate steps; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 approved by the Majority Lenders, 

 
	
  

 	
  

 	
  

 
	
  

 	
 PROVIDED that in the case of (c) and (d) above the relevant liens (or
 any claim relating thereto) are, in the reasonable opinion of the Agent,
 covered by insurance or, as the case may be, appropriate reserves have been
 made. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Pollutant means and includes crude oil and
 its products, any other polluting, toxic or hazardous substance and any other
 substance whose release into the environment is regulated or penalised by
 Environmental Laws. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Quiet Enjoyment Agreement means, in respect of a Ship, a
 letter by the Security Agent addressed to, and acknowledged by, the relevant
 Charterer of the Ship in an agreed form. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Quotation Day means, in relation to any period
 for which an interest rate is to be determined, two Business Days before the
 first day of that period unless market practice differs in the Interbank
 Market for a currency, in which case the Quotation Day for that currency
 shall be determined by the Agent 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. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Reference Banks means the principal offices in
 London, London, Copenhagen, London and Stockholm respectively of DNB Bank
 ASA, Commonwealth Bank of Australia, Danish Ship Finance A/S, ING Bank N.V.
 and Skandinaviska Enskilda Banken AB (publ) or such other banks as may be
 appointed by the Agent with the consent of the Borrowers. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Registry means, in relation to each Ship,
 such registrar, commissioner or representative of the relevant Flag State who
 is duly authorised and empowered to register the relevant Ship, the relevant
 Owner’s title to such Ship and the relevant Mortgage under the laws of its
 Flag State. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Relevant Jurisdiction means, in relation to an Obligor:
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 its jurisdiction of incorporation; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any jurisdiction where any Charged Property owned by it is situated; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any jurisdiction where it conducts its business; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 any jurisdiction whose laws govern the perfection of any of the
 Security Documents entered into by it. 

 

14

	
  

 	
  

 	
  

 
	
  

 	
 Repayment Date means, in respect of each
 Advance: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the First Repayment Date for such Advance; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 each of the dates falling at three monthly intervals thereafter up to
 but not including the Final Repayment Date for such Advance; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the Final Repayment Date for such Advance. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Replacement Charter means, in relation to a Ship, a
 charter commitment in respect of that Ship (other than the Charter for that
 Ship) which: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 is approved; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 is for an approved period and at approved charter rates; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 is in full force and effect; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 is entered into with a Charterer whose credit standing is approved; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 is subject to a Security Interest which is granted in favour of the
 Security Agent; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 is subject to a Quiet Enjoyment Agreement; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 satisfies such other terms as may be required by the Agent (acting on
 the instructions of the Lenders), 

 
	
  

 	
  

 	
  

 
	
  

 	
 and, for the avoidance of doubt, a bareboat charter can only be a
 Replacement Charter if the charterer for that bareboat charter is STSP. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Repeating Representations means each of the representations
 and warranties set out in clauses 17.1 (Status)
 to 17.10 (Ranking and effectiveness of
 Security Documents). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Requisition Compensation means, in relation to a Ship, any
 compensation paid or payable by a government entity for the requisition for
 title, confiscation or compulsory acquisition of such Ship. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Reserve Account means any Account designated as a
 “Reserve Account” under clause
 25 (Bank accounts). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Retention Account means any Account designated as a
 “Retention Account” under clause
 25 (Bank accounts). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Revenue Account means any Account designated as a
 “Revenue Account” under clause
 25 (Bank accounts).

 
	
  

 	
  

 	
  

 
	
  

 	
 Screen Rate means the British Bankers
 Association Interest Settlement Rate for dollars and the relevant period
 displayed on the appropriate page of the Reuters screen. If the agreed page
 is replaced or service ceases to be available, the Agent may specify another
 page or service displaying the appropriate rate after consultation with the
 Borrowers and the Lenders. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Security Agent includes any person as may be
 appointed security agent and trustee for the Lenders under this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Security Documents means: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the Original Security Documents; and 

 

15

	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any other document as may after the date of this Agreement be
 executed to guarantee and/or secure any amounts owing to the Finance Parties
 under this Agreement, any Hedging Contract or any other Finance Document. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Security Interest means a mortgage, charge, pledge,
 lien, assignment, trust, hypothecation or other security interest of any kind
 securing any obligation of any person or any other agreement or arrangement
 having a similar effect. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Security Value means, at any time, the amount in
 dollars which, at that time, is the aggregate of (a) the value of all the
 delivered Ships which have not then become a Total Loss and (b) the value of
 any additional security then held by the Security Agent provided under clause
 23 (Minimum security value), in
 each case as most recently determined in accordance with this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Selection Notice means a notice substantially in
 the form set out in Schedule 5 (Selection
 Notice) given in accordance with clause 9 (Interest Periods). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Share Security means, in relation to each
 Borrower, the document constituting a first Security Interest by its Holding
 Company in favour of the Security Agent in the agreed form in respect of all
 of the shares in such Borrower. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Ship A means the ship described as such
 in Schedule 2 (Ship information).
 

Ship B means the ship described
 as such in Schedule 2 (Ship information).

Ship C means the ship described
 as such in Schedule 2 (Ship information).
 

 
	
  

 	
  

 	
  

 
	
  

 	
 Ship Commitment means, in relation to a Ship, the
 amount specified against the name of such Ship in Schedule 2 (Ship information), as cancelled or
 reduced pursuant to any provision of this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Ship Representations means each of the representations
 and warranties set out in clauses 17.27 (Ship
 status) and 17.28 (Ship’s
 employment). 

 
	
  

 	
  

 	
  

 
	
  

 	
 Ships means each of the ships (to be
 built by the Builder under the Building Contracts) described in Schedule 2 (Ship information) and Ship means any of them. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Spill means any spill, release or discharge
 of a Pollutant into the environment. 

 
	
  

 	
  

 	
  

 
	
  

 	
 STSP means Shell Tankers Singapore
 (Pte.) Ltd. of Shell House, #04-00, 93 Clemencau Avenue, Singapore. 

 
	
  

 	
  

 	
  

 
	
  

 	
 STSCL means Shell International Trading
 and Shipping Company Limited of 80 Strand, London WC2R 0ZA. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Subsidiary of a person means any other
 person: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 directly or indirectly controlled by such person; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 of whose dividends or distributions on ordinary voting share capital
 such person is entitled to receive more than 50%. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Tax means any tax, levy, impost, duty
 or other charge or withholding of a similar nature (including any penalty or
 interest payable in connection with any failure to pay or any delay in paying
 any of the same) and Taxation
 shall be construed accordingly. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Total Commitments means the aggregate of the
 Commitments, being $435,000,000 at the date of this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Total Loss means, in relation to a vessel,
 its: 

 

16

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 actual, constructive, compromised or arranged total loss; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 requisition for title, confiscation or other compulsory acquisition
 by a government entity;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 condemnation, capture, seizure, arrest or
 detention for more than 30 days; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 hijacking or theft for more than 60
 days. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Total Loss Date means, in relation to the Total
 Loss of a 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: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 the date notice of abandonment of the vessel is given to its
 insurers; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 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 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 the date upon which a binding agreement as to such compromised or
 arranged total loss has been entered into by the vessel’s insurers; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 in the case of condemnation, capture, seizure, arrest or detention,
 the date 30 days after the date upon which it happened; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 in the case of hijacking or theft, the date 60 days after the date
 upon which it happened. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Total Loss Repayment Date means where a Ship has become a
 Total Loss after its Delivery 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Transfer Certificate means a certificate substantially
 in the form set out in Schedule 7 (Form of
 Transfer Certificate) or any other form agreed between the Agent
 and the Borrowers or at any time after the occurrence of an Event of Default,
 in any other form required by the Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Transfer Date means, in relation to a transfer,
 the later of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the proposed Transfer Date specified in the Transfer Certificate; and
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the date on which the Agent executes the Transfer Certificate. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Treasury Transaction means any derivative transaction
 entered into in connection with protection against or benefit from fluctuation
 in any rate or price. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Trust Property means, collectively: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 all moneys duly received by the Security Agent under or in respect of
 the Finance Documents; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any portion of the balance on any Account held by or charged to the
 Security Agent at any time; 

 

17

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Security Interests, guarantees, security, powers and rights given
 to the Security Agent under and pursuant to the Finance Documents including,
 without limitation, the covenants given to the Security Agent in respect of
 all obligations of any Obligor; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 all assets paid or transferred to or vested in the Security Agent or
 its agent or received or recovered by the Security Agent or its agent in
 connection with any of the Finance Documents whether from any Obligor or any
 other person; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 all or any part of any rights, benefits, interests and other assets
 at any time representing or deriving from any of the above, including all
 income and other sums at any time received or receivable by the Security
 Agent or its agent in respect of the same (or any part thereof). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Unpaid Sum means any sum due and payable but
 unpaid by an Obligor under the Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation means the making of an Advance. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation Date means the date on which a
 Utilisation is made. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation Request means a notice substantially in
 the form set out in Schedule 4 (Utilisation
 Request). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 VAT means value added tax as provided
 for in the Value Added Tax Act 1994 and any other tax of a similar nature and
 the analogous taxes in any other relevant jurisdictions. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2

 	
  

 	
 Construction 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.1

 	
  

 	
 Unless a contrary indication appears, any reference in any of the
 Finance Documents to: 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Sections, clauses and Schedules are to be construed as references to
 the Sections and clauses of, and the Schedules to, the relevant Finance
 Document and references to a Finance Document include its Schedules; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 a Finance Document or
 any other agreement or instrument is a reference to that Finance Document or
 other agreement or instrument as it may from time to time be amended,
 restated, novated or replaced, however fundamentally; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 words importing the plural shall include the singular and vice versa;
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 a time of day are to London time; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 any person includes its successors in title, permitted assignees or
 transferees; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 the knowledge, awareness and/or beliefs (and similar expressions) of
 any Obligor shall be construed so as to mean the knowledge, awareness and
 beliefs of the director and officers of such Obligor, having made due and
 careful enquiry; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 agreed form
 means: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 where a Finance Document has already been executed by the Agent or
 the Security Agent, such Finance Document in its executed form; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 prior to the execution of a Finance Document, the form of such
 Finance Document separately agreed in writing between the Agent and the
 Borrowers, whether before or after the date of this Agreement, as the form in
 which that Finance Document is to be executed or another form approved at the
 request of the Borrowers; 

 

18

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 approved by the Majority Lenders means approved in writing by the
 Agent acting on the instructions of the Majority Lenders (on such conditions
 as they may respectively impose) and otherwise approved means approved in writing by the Agent acting on
 the instructions of all of the Lenders (on such conditions as the Agent may
 impose) and approval and approve shall be construed accordingly; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 assets includes present and future
 properties, revenues and rights of every description; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (j)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 charter commitment means, in relation to a vessel,
 any charter or contract for the use, employment or operation of that vessel
 or the carriage of people and/or cargo or the provision of services by or
 from it and includes any agreement for pooling or sharing income derived from
 any such charter or contract; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (l)

 	
 control of an entity means: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 cast, or control the casting of, more than 50% of the maximum number
 of votes that might be cast at a general meeting of that entity; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (C)

 	
 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 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 the holding beneficially of more than 50% 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 controlled shall be
 construed accordingly; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (m)

 	
 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; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (n)

 	
 dollar/$ means
 the lawful currency of the United States of America; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (o)

 	
 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
 11:00 a.m. on the date the calculation falls to be made for spot delivery, as
 conclusively determined by the Agent (with the relevant exchange rate of any
 such purchase being the Agent’s spot rate
 of exchange); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (p)

 	
 a government entity
 means any government, state or agency of a state; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (q)

 	
 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 GasLog by any of them, either directly
 or indirectly to obtain or consolidate control of GasLog; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (r)

 	
 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 

 

19

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (s)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (t)

 	
 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) to (ii) will only apply to the
 last month of any period; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (u)

 	
 an obligation means any
 duty, obligation or liability of any kind; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 something being in the ordinary
 course of business of a person means something that is in the
 ordinary course of that person’s current day-to-day operational business (and
 not merely anything which that person is entitled to do under its
 Constitutional Documents); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (w)

 	
 pay, prepay or repay in clause 26 (Business
 restrictions) includes by way of set-off, combination of accounts
 or otherwise; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 a person includes any
 individual, firm, company, corporation, government entity or any association,
 trust, joint venture, consortium or partnership (whether or not having
 separate legal personality); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (y)

 	
 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 and the Basel III Regulation; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (z)

 	
 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; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (aa)

 	
 trustee, fiduciary and fiduciary
 duty has in each case the meaning given to such term under
 applicable law; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (bb)

 	
 (i) the 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; 

 

20

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (cc)

 	
 wholly-owned subsidiary has the meaning given to that
 term in section 1159 of the Companies Act 2006; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (dd)

 	
 a provision of law is a reference to that provision as amended or
 re-enacted. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.2

 	
  

 	
 Where in this Agreement a provision includes a monetary reference
 level in one currency, unless a contrary indication appears, such reference
 level is intended to apply equally to its equivalent in other currencies as
 of the relevant time for the purposes of applying such reference level to any
 other currencies. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.3

 	
  

 	
 Section, clause and Schedule headings are for ease of reference only.
 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.4

 	
  

 	
 Unless a contrary indication appears, a term used in any other
 Finance Document or in any notice given under or in connection with any
 Finance Document has the same meaning in that Finance Document or notice as
 in this Agreement. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.5

 	
  

 	
 A Default (other than an Event of Default) is continuing if it has not been remedied or
 waived and an Event of Default is continuing
 if it has not been waived. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.6

 	
  

 	
 Unless a contrary indication appears, in the event of any
 inconsistency between the terms of this Agreement and the terms of any other
 Finance Document when dealing with the same or similar subject matter, the
 terms of this Agreement shall prevail. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3

 	
  

 	
 Third party rights 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3.1

 	
  

 	
 Unless expressly provided to the contrary in a Finance Document for
 the benefit of a Finance Party or another Indemnified Person, a person who is not a party to a
 Finance Document has no right under the Contracts (Rights of Third Parties)
 Act 1999 (the Third Parties Act)
 to enforce or to enjoy the benefit of any term of the relevant Finance
 Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3.2

 	
  

 	
 Any Finance Document may be rescinded or varied by the parties to it
 without the consent of any person who is not a party to it (unless otherwise
 provided by this Agreement). 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3.3

 	
  

 	
 An Indemnified Person who is not a party to a Finance Document may
 only enforce its rights under that Finance Document through a Finance Party
 and if and to the extent and in such manner as the Finance Party may
 determine. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.4

 	
  

 	
 Finance Documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where any other Finance Document provides that this clause 1.4 shall
 apply to that Finance Document, any other provision of this Agreement which,
 by its terms, purports to apply to all or any of the Finance Documents and/or
 any Obligor shall apply to that Finance Document as if set out in it but with
 all necessary changes. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.5

 	
  

 	
 Conflict of documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The terms of the Finance Documents (other than as relates to the
 creation and/or perfection of security) are subject to the terms of this
 Agreement and, in the event of any conflict between any provision of this
 Agreement and any provision of any Finance Document (other than in relation
 to the creation and/or perfection of security) the provisions of this
 Agreement shall prevail. 

 

21

SECTION 2 - THE FACILITY

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2

 	
  

 	
 The Facility 

 
	
  

 	
  

 	
  

 
	
 2.1

 	
  

 	
 The Facility 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject
 to the terms of this Agreement, the Lenders agree to make available to the
 Borrowers a term loan facility in an aggregate amount equal to the Total
 Commitments. 

 
	
  

 	
  

 	
  

 
	
 2.2

 	
  

 	
 Finance Parties’ rights and obligations 

 
	
  

 	
  

 	
  

 
	
 2.2.1

 	
  

 	
 The
 obligations of each Finance Party under the Finance Documents are several.
 Failure by a Finance Party to perform its obligations under the Finance
 Documents does not affect the obligations of any other Party under the
 Finance Documents. No Finance Party is responsible for the obligations of any
 other Finance Party under the Finance Documents. 

 
	
  

 	
  

 	
  

 
	
 2.2.2

 	
  

 	
 The
 rights of each Finance Party under or in connection with the Finance
 Documents are separate and independent rights and any debt arising under the
 Finance Documents to a Finance Party from an Obligor shall be a separate and
 independent debt. 

 
	
  

 	
  

 	
  

 
	
 2.2.3

 	
  

 	
 A
 Finance Party may, except as otherwise stated in the Finance Documents
 (including clauses 32.25 (All enforcement
 action through the Security Agent)) and 33.2 (Finance Parties acting together),
 separately enforce its rights under the Finance Documents. 

 
	
  

 	
  

 	
  

 
	
 2.3

 	
  

 	
 Borrowers’ rights and obligations 

 
	
  

 	
  

 	
  

 
	
 2.3.1

 	
  

 	
 The
 obligations of each Borrower under this Agreement are joint and several.
 Failure by a Borrower to perform its obligations under this Agreement shall
 constitute a failure by all of the Borrowers. 

 
	
  

 	
  

 	
  

 
	
 2.3.2

 	
  

 	
 Each
 Borrower irrevocably and unconditionally jointly and severally with each other
 Borrower: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 agrees
 that it is responsible for the performance of the obligations of each other
 Borrower under this Agreement; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 acknowledges
 and agrees that it is a principal and original debtor in respect of all
 amounts due from the Borrowers under this Agreement; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 agrees
 with each Finance Party that, if any obligation of another Borrower under
 this Agreement is or becomes unenforceable, invalid or illegal for any reason
 it will, as an independent and primary obligation, indemnify that Finance
 Party immediately on demand against any and all Losses it incurs as a result
 of another Borrower not paying any amount which would, but for such
 unenforceability, invalidity or illegality, have been payable by that other Borrower
 under this Agreement. The amount payable under this indemnity shall be equal
 to the amount which that Finance Party would otherwise have been entitled to
 recover. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.3.3

 	
  

 	
 The
 obligations of each Borrower under the Finance Documents shall continue until
 all amounts which may be or become payable by the Borrowers under or in
 connection with the Finance Documents have been irrevocably and
 unconditionally paid or discharged in full, regardless of any intermediate
 payment or discharge in whole or in part. 

 
	
  

 	
  

 	
  

 
	
 2.3.4

 	
  

 	
 If any
 discharge, release or arrangement (whether in respect of the obligations of a
 Borrower or any security for those obligations or otherwise) is made by a
 Finance Party in whole or in part on the basis of any payment, security or other
 disposition which is avoided or must be restored in insolvency, liquidation,
 administration or otherwise, without limitation, then the liability of the
 Borrowers under this Agreement will continue or be reinstated as if the
 discharge, release or arrangement had not occurred. 

 

22

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.3.5

 	
  

 	
 The
 obligations of each Borrower under the Finance Documents shall not be
 affected by an act, omission, matter or thing which, but for this clause
 (whether or not known to it or any Finance Party), would reduce, release or
 prejudice any of its obligations under the Finance Documents including:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any
 time, waiver or consent granted to, or composition with, any Obligor or other
 person; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the
 release of any other Obligor or any other person under the terms of any
 composition or arrangement with any creditor of any other Obligor; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the
 taking, variation, compromise, exchange, renewal or release of, or refusal or
 neglect to perfect, take up or enforce, any rights against, or security over
 assets of, any Obligor or other person or any non-presentation or
 non-observance of any formality or other requirement in respect of any
 instrument or any failure to realise the full value of any security; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 any
 incapacity or lack of power, authority or legal personality of or dissolution
 or change in the members or status of an Obligor or any other person; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 any
 amendment, novation, supplement, extension, restatement (however fundamental
 and whether or not more onerous) or replacement of a Finance Document or any
 other document or security; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (f)

 	
 any
 unenforceability, illegality or invalidity of any obligation of any person
 under any Finance Document or any other document or security; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (g)

 	
 any
 insolvency or similar proceedings. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.3.6

 	
  

 	
 Each
 Borrower waives any right it may have of first requiring any Finance Party
 (or any trustee or agent on its behalf) to proceed against or enforce any
 other rights or security or claim payment from any person before claiming
 from that Borrower under any Finance Document. This waiver applies
 irrespective of any law or any provision of a Finance Document to the
 contrary. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.3.7

 	
  

 	
 Until
 all amounts which may be or become payable by the Obligors under or in connection
 with the Finance Documents have been irrevocably and unconditionally paid or
 discharged in full, each Finance Party (or any trustee or agent on its
 behalf) may: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 refrain
 from applying or enforcing any other moneys, security or rights held or
 received by that Finance Party (or any trustee or agent on its behalf) in
 respect of those amounts, or apply and enforce the same in such manner and
 order as it sees fit (whether against those amounts or otherwise) and no
 Borrower will be entitled to the benefit of the same; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 hold in
 an interest-bearing suspense account any money received from any Borrower or
 on account of any Borrower’s liability under any Finance Document. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.3.8

 	
  

 	
 Until
 all amounts which may be or become payable by the Obligors under or in
 connection with the Finance Documents have been irrevocably paid in full and
 unless the Agent otherwise directs (on such terms as it may require), no
 Borrower shall exercise any rights (including rights of set-off) which it may
 have by reason of performance by it of its obligations under the Finance
 Documents:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 to be
 indemnified by another Obligor; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 to claim
 any contribution from any other Obligor or any guarantor of any Obligor’s
 obligations under the Finance Documents other than as may be permitted under
 section subject to the provisions of clause 22; and/or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 to take
 the benefit (in whole or in part and whether by way of subrogation or
 otherwise) of any rights of the Finance Parties under the Finance Documents
 or of any guarantee 

 

23

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 or
 security taken pursuant to, or in connection with, the Finance Documents by
 any Finance Party.

 
	
  

 	
  

 	
  

 
	
 2.4

 	
  

 	
 Adjustment for liquidated damages 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If an
 Owner becomes entitled to receive liquidated damages under a Building
 Contract or to have liquidated damages deducted from the Delivery Instalment
 for the relevant Ship, the Advance for the relevant Ship and the Total
 Commitments shall each be reduced by an amount equal to 70% of such liquidated
 damages (save to the extent that any such liquidated damages are to be paid
 by the relevant Owner or the Builder of the relevant Ship to the Charterer of
 that Ship which shall include by way of a reduction in, or setting off
 against, hire under the Charter or the Replacement Charter of that Ship). 

 
	
  

 	
  

 	
  

 
	
 3

 	
  

 	
 Purpose 

 
	
  

 	
  

 	
  

 
	
 3.1

 	
  

 	
 Purpose 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall apply all amounts borrowed under the Facility in accordance
 with this clause 3. 

 
	
  

 	
  

 	
  

 
	
 3.2

 	
  

 	
 Use 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 Commitment for each Ship shall be made available solely for the purpose of
 assisting the relevant Owner to finance the Delivery Price for such Ship. 

 
	
  

 	
  

 	
  

 
	
 3.3

 	
  

 	
 Monitoring 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 Finance Party is bound to monitor or verify the application of any amount
 borrowed pursuant to this Agreement. 

 
	
  

 	
  

 	
  

 
	
 4

 	
  

 	
 Conditions of
 Utilisation 

 
	
  

 	
  

 	
  

 
	
 4.1

 	
  

 	
 Initial conditions precedent 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers may not execute this Agreement unless the Agent, or its duly
 authorised representative, has received all of the documents and the evidence
 listed in Part 1 of Schedule 3 (Conditions
 precedent to executing this Agreement) in form and substance
 satisfactory to the Agent. 

 
	
  

 	
  

 	
  

 
	
 4.2

 	
  

 	
 Conditions precedent on delivery of Utilisation Request 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers may not deliver a Utilisation Request unless the Agent, or its duly
 authorised representative, has received all of the documents and other
 evidence listed in Part 2 of Schedule 3 (Conditions
 precedent to any Utilisation) in form and substance satisfactory
 to the Agent. 

 
	
  

 	
  

 	
  

 
	
 4.3

 	
  

 	
 Conditions precedent on Delivery 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 Commitment in respect of a Ship shall only become available for borrowing
 under this Agreement if the Agent, or its duly authorised representative, has
 received all of the documents and evidence listed in Part 3 of Schedule 3 (Conditions precedent on Delivery) in
 relation to such Ship in form and substance satisfactory to the Agent. 

 
	
  

 	
  

 	
  

 
	
 4.4

 	
  

 	
 Notice to Lenders 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent shall notify the Borrowers and the Lenders promptly upon receiving and
 being satisfied with all of the documents and evidence delivered to it under
 this clause 4. 

 

24

	
  

 	
  

 	
  

 	
  

 
	
 4.5

 	
  

 	
 Further
 conditions precedent 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Lenders will only be obliged to comply with clause 5.4 (Lenders’ participation) if on the date
 of the Utilisation Request and on the proposed Utilisation Date: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 no
 Default is continuing or would result from the proposed Utilisation; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 Repeating Representations and, in relation to the first Utilisation, all of
 the other representations set out in clause 17 (Representations) (except the Ship Representations), are
 true; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in
 relation to the Utilisation of the Ship Commitment for a Ship, the Ship
 Representations are true so far as they relate to that Ship. 

 
	
  

 	
  

 	
  

 	
  

 
	
 4.6

 	
  

 	
 Waiver of conditions precedent 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 conditions in this clause 4 are inserted solely for the benefit of the
 Finance Parties and may be waived on their behalf in whole or in part and
 with or without conditions by the Agent acting on the instructions of the
 Lenders. 

 
	
  

 	
  

 	
  

 
	
 4.7

 	
  

 	
 Conditions subsequent 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 condition precedent with respect to the provision of evidence that the
 relevant Ship has been delivered and accepted for service under the relevant
 Charter or the relevant Replacement Charter specified at paragraph 3(a)(v) of
 part 3 of Schedule 3, must be satisfied as soon as practicable after the
 relevant Utilisation Date and, in any event, no later than three Banking Days
 after the relevant Utilisation Date. 

 

25

SECTION 3 - UTILISATION

	
  

 	
  

 	
  

 	
  

 
	
 5

 	
  

 	
 Utilisation 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.1

 	
  

 	
 Delivery of a
 Utilisation Request 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A
 Borrower may utilise the Facility by delivery to the Agent of a duly
 completed Utilisation Request not later than 11:00 a.m. five Business Days
 before the proposed Utilisation Date. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.2

 	
  

 	
 Completion of a Utilisation Request 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.2.1

 	
  

 	
 A
 Utilisation Request is irrevocable and will not be regarded as having been
 duly completed unless: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 proposed Utilisation Date, in respect of an Advance, is a Business Day
 falling not later than the Last Availability Date; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 currency and amount of the Utilisation comply with clause 5.3 (Currency and amount); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the
 proposed Interest Period complies with clause 9 (Interest Periods); and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 it
 identifies the purpose for the Utilisation and that purpose complies with
 clause 3 (Purpose). 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.2.2

 	
  

 	
 Only one
 Advance may be requested in each Utilisation Request. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.3

 	
  

 	
 Currency and amount 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 currency specified in a Utilisation Request must be dollars and the amount of
 the proposed Advance must, in relation to a Ship, be the lesser of (a) the
 Ship Commitment for such Ship or, if less, the amount of the Available
 Facility less the amount of the outstanding Loan or (b) such amount as the
 Agent shall determine to be equal to 70% of the Delivery Price for such Ship
 as of the date of such Utilisation Request PROVIDED THAT the Security Value
 of the Ships shall always exceed the Minimum Value. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.4

 	
  

 	
 Lenders’
participation

 
	
  

 	
  

 	
  

 	
  

 
	
 5.4.1

 	
  

 	
 If the
 conditions set out in this Agreement have been met, each Lender shall make
 its participation in each Advance available by the Utilisation Date through
 its Facility Office. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.4.2

 	
  

 	
 The
 amount of each Lender’s participation in the Advance will be equal to the
 proportion borne by its Commitment to the Total Commitments immediately prior
 to making the Advance. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.4.3

 	
  

 	
 The
 Agent shall promptly notify each Lender of the amount of the Advance and the
 amount of its participation in the Advance. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.4.4

 	
  

 	
 The
 Agent shall pay all amounts received by it in respect of each Advance (and
 its own participation in it, if any) to the Borrowers or for the account of
 any of them in accordance with the instructions contained in the Utilisation
 Request. 

 

26

SECTION 4 - REPAYMENT, PREPAYMENT AND CANCELLATION

	
  

 	
  

 	
  

 
	
 6

 	
  

 	
 Repayment 

 
	
  

 	
  

 	
  

 
	
 6.1

 	
  

 	
 Repayment 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall on each Repayment Date repay such part of the Loan as is
 required to be repaid by clause 6.2 (Scheduled
 repayment of Advances). 

 
	
  

 	
  

 	
  

 
	
 6.2

 	
  

 	
 Scheduled
 repayment of Advances 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall repay each Advance by 28 instalments, one such instalment to
 be repaid on each of the Repayment Dates relative to such Advance. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 To the
 extent not previously reduced, each Advance shall be repaid by instalments on
 each Repayment Date by the amount specified below (as revised by clause 6.3):
 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Advance A

 	
  

 	
 Advance B

 	
  

 	
 Advance C

 
	
 Repayment Date

 	
  

 	
 Amount $

 	
  

 	
 Amount $

 	
  

 	
 Amount $

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 First

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Second

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Third

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fourth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fifth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Sixth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Seventh

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Eighth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Ninth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Tenth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Eleventh

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twelfth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Thirteenth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fourteenth

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fifteen

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Sixteen

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Seventeen

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Eighteen

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Nineteen

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty one

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 

27

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Advance A

 	
  

 	
 Advance B

 	
  

 	
 Advance C

 
	
 Repayment Date

 	
  

 	
 Amount $

 	
  

 	
 Amount $

 	
  

 	
 Amount $

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty two

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty three

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty four

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty five

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty six

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty seven

 	
  

 	
 1,990,000

 	
  

 	
 2,030,000

 	
  

 	
 2,030,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Twenty eight

 	
  

 	
 89,270,000

 	
  

 	
 91,190,000

 	
  

 	
 91,190,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Total

 	
  

 	
 143,000,000

 	
  

 	
 146,000,000

 	
  

 	
 146,000,000

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On the
 Final Repayment Date relative to an Advance (without prejudice to any other
 provision of this Agreement), the relevant Advance shall be repaid in full. 

 
	
  

 	
  

 	
  

 	
  

 
	
 6.3

 	
  

 	
 Adjustment of scheduled repayments 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the
 Total Commitments have been partially reduced under this Agreement and/or any
 part of any Advance is prepaid (other than under clause 6.2 (Scheduled repayment of Advances)) before
 any Repayment Date, the amount of the instalment by which such Advance shall
 be repaid under clause 6.2 (Scheduled
 repayment of Advances) on any such Repayment Date (as reduced by
 any earlier operation of this clause 6.3) shall be reduced pro rata to such
 reduction in the Total Commitments. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
  

 	
 Illegality,
 prepayment and cancellation 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.1

 	
  

 	
 Illegality 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If it
 becomes unlawful in any applicable jurisdiction for a Lender to perform any
 of its obligations as contemplated by this Agreement or to fund or maintain
 its participation in the Loan: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 that
 Lender shall promptly notify the Agent upon becoming aware of that event; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 upon the
 Agent notifying the Borrowers, the Commitment of that Lender will be
 immediately cancelled and any undrawn Advances shall each be reduced
 rateably; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the
 Borrowers shall repay that Lender’s participation in the Loan on the last day
 of the Interest Period occurring after the Agent has notified the Borrowers
 or, if earlier, the date specified by that Lender in the notice delivered to
 the Agent (being no earlier than the last day of any applicable grace period
 permitted by law). 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.2

 	
  

 	
 Voluntary cancellation 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers may, if they give the Agent not less than ten Business Days’ (or
 such shorter period as the Majority Lenders may agree) prior notice, cancel
 the whole or any part (being a minimum amount of $5,000,000 and a multiple of
 $5,000,000) of any part of the Available Facility which is undrawn at the
 proposed date of cancellation. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.3

 	
  

 	
 Voluntary prepayment 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers may, if they give the Agent not less than ten Business Days’ (or
 such shorter period as the Majority Lenders may agree) prior written notice,
 prepay the whole or any part of 

 

28

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the Loan
 (but if in part, being an amount that reduces the amount of the Loan by a
 minimum amount of $5,000,000 and which is a multiple of $5,000,000) on the
 last day of an Interest Period in respect of the amount to be prepaid. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.4

 	
  

 	
 Right of cancellation and prepayment in relation to a
 single Lender 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.4.1

 	
  

 	
 If: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any sum
 payable to any Lender by an Obligor is required to be increased under clause
 12.2 (Tax gross-up); or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any
 Lender claims indemnification from the Borrowers under clause 12.3 (Tax indemnity) or clause 13.1 (Increased costs), 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the
 Borrowers may, whilst the circumstance giving rise to the requirement for
 that increase or indemnification continues, give the Agent notice of
 cancellation of the Commitment of that Lender and their intention to procure
 the repayment of that Lender’s participation in the Loan. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.4.2

 	
  

 	
 On
 receipt of a notice of cancellation referred to in clause 7.4.1 above, the
 Commitment of that Lender shall immediately be reduced to zero. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.4.3

 	
  

 	
 On the
 last day of each Interest Period which ends after the Borrowers have given
 notice of cancellation under clause 7.4.1 above (or, if earlier, the date
 specified by the Borrowers in that notice), the Borrowers shall repay that
 Lender’s participation in the Loan. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.4.4

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 If any
 Lender becomes a Defaulting Lender, the Borrowers may, at any time whilst the
 Lender continues to be a Defaulting Lender, give the Agent three Business
 Days’ notice of cancellation of the Commitment of that Lender. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 On the
 notice referred to in paragraph (a) above becoming effective, the Commitment
 of the Defaulting Lender shall immediately be reduced to zero. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 The
 Agent shall as soon as practicable after receipt of a notice referred to in
 paragraph (a) above, notify all the Lenders. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.5

 	
  

 	
 Total Loss 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On the
 Total Loss Repayment Date, the Borrowers shall prepay the Ship Commitment for
 such Ship which has become a Total Loss and shall ensure that the Minimum
 Value is maintained. The Ship Commitment for such Ship shall be reduced to
 zero. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.6

 	
  

 	
 Change of Control 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If there
 is a Change of Control or an IPO Change of Control, the Agent shall cancel
 the Total Commitments and the Borrowers shall prepay the Loan in full. 

 
	
  

 	
  

 	
  

 	
  

 
	
 7.7

 	
  

 	
 Mandatory pre-delivery cancellation 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If prior
 to Delivery: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any
 Building Contract is for any reason and by any method cancelled, terminated
 or rescinded; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a
 competent court or arbitration panel decides that any Building Contract has
 been validly cancelled, terminated or rescinded; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any
 Building Contract is varied in a way prohibited by any Finance Document; or 

 

29

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 (if
 applicable) any Building Contract Document other than the Building Contract
 is repudiated, cancelled, rescinded or otherwise terminated or is not or
 ceases to be legal, valid, binding and enforceable obligations of a guarantor
 or it is or becomes unlawful for any guarantor to perform its obligations
 under it; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 Delivery,
 in respect of a Ship, has not occurred by the Last Availability Date, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 then,
 the Agent may, and shall if so directed by the Lenders, by notice to the
 Borrowers with effect from the date 25 Business Days after the giving of such
 notice (or such later date as may be approved in advance by the Majority
 Lenders) cancel the Ship Commitment relevant to such Building Contract. 

 
	
  

 	
  

 	
  

 
	
 7.8

 	
  

 	
 Automatic cancellation 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any part
 of the Total Commitments which has not become available by the Last
 Availability Date shall be automatically cancelled at close of business in
 London on the Last Availability Date. 

 
	
  

 	
  

 	
  

 
	
 7.9

 	
  

 	
 Restrictions 

 
	
  

 	
  

 	
  

 
	
 7.9.1

 	
  

 	
 Any
 notice of cancellation or prepayment given by any Party under this clause 7
 shall be irrevocable and, unless a contrary indication appears in this
 Agreement, shall specify the date or dates upon which the relevant
 cancellation or prepayment is to be made and the amount of that cancellation
 or prepayment. 

 
	
  

 	
  

 	
  

 
	
 7.9.2

 	
  

 	
 Any
 prepayment under this Agreement shall be made together with accrued interest
 on the amount prepaid and, subject to any Break Costs, without premium or
 penalty. 

 
	
  

 	
  

 	
  

 
	
 7.9.3

 	
  

 	
 The
 Borrowers may not reborrow any part of the Facility which is repaid or
 prepaid. 

 
	
  

 	
  

 	
  

 
	
 7.9.4

 	
  

 	
 The
 Borrowers shall not repay or prepay all or any part of the Loan or cancel all
 or any part of the Commitments except at the times and in the manner
 expressly provided for in this Agreement. 

 
	
  

 	
  

 	
  

 
	
 7.9.5

 	
  

 	
 No
 amount of the Total Commitments cancelled under this Agreement may be
 subsequently reinstated. 

 
	
  

 	
  

 	
  

 
	
 7.9.6

 	
  

 	
 If the
 Agent receives a notice under this clause 7 it shall promptly forward a copy of
 that notice to either the Borrowers or the affected Lender, as appropriate. 

 
	
  

 	
  

 	
  

 
	
 7.9.7

 	
  

 	
 Any
 partial amount of the Loan prepaid or cancelled under this Agreement shall be
 applied in reduction of the repayment instalments under clause 6.2 (Scheduled repayment of Facility) pro
 rata. 

 
	
  

 	
  

 	
  

 
	
 7.9.8

 	
  

 	
 Any
 prepayment under this Agreement shall be made together with payment to the
 Hedging Provider of any amount falling due to the Hedging Provider under a
 Hedging Contract as a result of the termination or close out of that Hedging
 Contract or any Hedging Transaction under it in accordance with clause 27.2 (Unwinding of Hedging Contracts) in
 relation to that repayment. 

 

30

SECTION 5 - COSTS OF UTILISATION

	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
 Interest 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.1

 	
  

 	
 Calculation of
 interest 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The rate
 of interest on the Loan for each Interest Period is the percentage rate per
 annum which is the aggregate of the applicable: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Margin; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 LIBOR;
 and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Mandatory
 Cost, if any. 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.2

 	
  

 	
 Payment of interest 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall pay accrued interest on the Loan on the last day of each
 Interest Period (and, if the Interest Period is longer than three months, on
 the dates falling at three monthly intervals after the first day of the
 Interest Period). 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.3

 	
  

 	
 Default interest 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.3.1

 	
  

 	
 If an
 Obligor fails to pay any amount payable by it under a Finance Document (other
 than the Hedging Contract) on its due date, interest shall accrue on the
 overdue amount from the due date up to the date of actual payment (both
 before and after judgment) at a rate which, subject to clause 8.3.2 below, is
 2% higher than the rate which would have been payable if the overdue amount
 had, during the period of non-payment, constituted the Loan for successive
 Interest Periods, each of a duration selected by the Agent (acting
 reasonably). Any interest accruing in accordance with this clause 8.3 shall
 be immediately payable by the Obligor on demand by the Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.3.2

 	
  

 	
 If any
 overdue amount consists of all or part of the Loan which became due on a day
 which was not the last day of an Interest Period relating to the Loan or the
 relevant part of it: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 first Interest Period for that overdue amount shall have a duration equal to
 the unexpired portion of the current Interest Period relating to the Loan;
 and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the rate
 of interest applying to the overdue amount during that first Interest Period
 shall be 2% higher than the rate which would have applied if the overdue
 amount had not become due. 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.3.3

 	
  

 	
 Default
 interest (if unpaid) arising on an overdue amount will be compounded with the
 overdue amount at the end of each Interest Period applicable to that overdue
 amount but will remain immediately due and payable. 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.4

 	
  

 	
 Notification of rates of interest 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent shall promptly notify the Lenders and the Borrowers of the
 determination of a rate of interest under this Agreement. 

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
 Interest Periods 

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1

 	
  

 	
 Selection of Interest Periods 

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1.1

 	
  

 	
 The
 Borrowers may select an Interest Period for each Advance in the Utilisation
 Request for that Advance or (if that Advance has already been borrowed) in a
 Selection Notice. 

 

31

	
  

 	
  

 	
  

 	
  

 
	
 9.1.2

 	
  

 	
 Each
 Selection Notice is irrevocable and must be delivered to the Agent by the
 Borrowers not later than 11:00 a.m. three Business Days before the last day
 of the then current Interest Period. 

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1.3

 	
  

 	
 If the
 Borrowers fail to deliver a Selection Notice to the Agent in accordance with
 clause 9.1.2, the relevant Interest Period will subject to clause 9.2 (Interest Periods overrunning Repayment Dates),
 be three months. 

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1.4

 	
  

 	
 Subject
 to this clause 9, the Borrowers may select an Interest Period of three, six,
 nine or 12 months or any other period agreed between the Borrowers and the
 Agent (on the instructions of all the Lenders). 

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1.5

 	
  

 	
 No
 Interest Period shall extend beyond the Final Repayment Date. 

 
	
  

 	
  

 	
  

 	
  

 
	
 9.2

 	
  

 	
 Interest Periods overrunning Repayment Dates 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the
 Borrowers select an Interest Period for an Advance which would overrun any
 later Repayment Date for that Advance, such Advance shall be divided into
 parts corresponding to the amounts by which such Advance is scheduled to be
 reduced under clause 6.2 (Scheduled
 repayment of Facility) on each of the Repayment Dates falling
 during such Interest Period (each of which shall have a separate Interest
 Period ending on the relevant Repayment Date) and to the balance of such
 Advance (which shall have the Interest Period selected by the Borrowers). 

 
	
  

 	
  

 	
  

 	
  

 
	
 9.3

 	
  

 	
 Non-Business Days 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If an
 Interest Period would otherwise end on a day which is not a Business Day,
 that Interest Period will instead end on the next Business Day in that
 calendar month (if there is one) or the preceding Business Day (if there is
 not). 

 
	
  

 	
  

 	
  

 	
  

 
	
 10

 	
  

 	
 Changes to the
 calculation of interest 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.1

 	
  

 	
 Absence of quotations 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject
 to clause 10.2 (Market disruption),
 if LIBOR is to be determined by reference to the Reference Banks but a
 Reference Bank does not supply a quotation by 11:00 a.m. on the Quotation
 Day, the applicable LIBOR shall be determined on the basis of the quotations
 of the remaining Reference Banks. 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.2

 	
  

 	
 Market disruption 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.2.1

 	
  

 	
 If a
 Market Disruption Event occurs in relation to the Loan for any Interest
 Period, then the rate of interest on each Lender’s share of the Loan for the
 Interest Period shall be the rate per annum which is the sum of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 Margin; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the rate
 notified to the Agent by that Lender as soon as practicable and in any event
 before interest is due to be paid in respect of that Interest Period, to be
 that which expresses as a percentage rate per annum the cost to that Lender
 of funding its participation in the Loan from whatever source it may
 reasonably select; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the
 Mandatory Cost, if any, applicable to that Lender’s participation in the
 Loan. 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.2.2

 	
  

 	
 In this
 Agreement “Market Disruption Event”
 means that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 no
 Screen Rate is quoted and two or more of the Reference Banks do not, before
 1.00pm (London time) on the Quotation Day for the relevant Interest Period,
 provide quotations to the Agent in order to determine LIBOR; or 

 

32

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 at least
 one Banking Day before the start of an Interest Period, a Bank or Banks whose
 total participations in the Loan amount to 50% or more of the Loan (or, if an
 Advance has not yet been made, Commitments together amounting to 50% or more
 of the Total Commitments) notify the Agent that LIBOR fixed by the Agent
 would not accurately reflect the cost to that Lender or those Lenders of
 funding their respective participations in the Loan or their respective
 Commitments (or any part of them) during the Interest Period in the London
 Interbank Market at or about 11.00am (London time) on the Quotation Day for
 the relevant Interest Period; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 at least
 one Banking Day before the start of an Interest Period, the Agent is notified
 by a Lender or Lenders that for any reason it is unable to obtain Dollars in
 the London Interbank Market in order to fund its participation in the Loan
 (or any part of it) during the Interest Period. 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.3

 	
  

 	
 Alternative basis of interest or funding 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.3.1

 	
  

 	
 If a
 Market Disruption Event occurs and the Agent or Borrowers so require, the
 Agent and the Borrowers shall enter into negotiations (for a period of not
 more than 30 days) with a view to agreeing a substitute basis for determining
 the rate of interest. If no alternative rate of interest is agreed between
 the Borrowers and the Agent, the rate specified under clause 10.2.1 (Market Disruption) shall be applicable. 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.3.2

 	
  

 	
 Any
 alternative basis agreed pursuant to clause 10.3.1 above shall, with the
 prior consent of all the Lenders be binding on all Parties. 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.4

 	
  

 	
 Break Costs 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.4.1

 	
  

 	
 The
 Borrowers shall, within three Business Days of demand by a Finance Party, pay
 to that Finance Party its Break Costs attributable to all or any part of the
 Loan or Unpaid Sum being paid by the Borrowers on a day other than the last
 day of an Interest Period for the Loan or Unpaid Sum or relevant part of it. 

 
	
  

 	
  

 	
  

 	
  

 
	
 10.4.2

 	
  

 	
 Each
 Lender shall, as soon as reasonably practicable after a demand by the Agent,
 provide a certificate confirming the amount of its Break Costs for any
 Interest Period in which they accrue. 

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
  

 	
 Fees 

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1

 	
  

 	
 Commitment commission 

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1.1

 	
  

 	
 The
 Borrowers shall pay to the Agent (for the account of each Lender) a fee in
 dollars computed at the rate of 0.8% per annum on the undrawn portion of that
 Lender’s Commitment calculated from 20 October 2011 (the “start date”). 

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1.2

 	
  

 	
 The
 Borrowers shall pay the accrued commitment commission on the last day of the
 period of three months commencing on the start date, on the last day of each
 successive period of three months thereafter until and on the earlier of (a)
 the Last Availability Date and (b) the final Utilisation Date and, if
 cancelled in full, on the cancelled amount of the relevant Lender’s
 Commitment at the time the cancellation is effective. 

 
	
  

 	
  

 	
  

 	
  

 
	
 11.2

 	
  

 	
 Arrangement fee 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall pay to the Agent (for the distribution to the Arrangers) a
 non-refundable arrangement fee in the amount and at the times agreed in a Fee
 Letter. 

 
	
  

 	
  

 	
  

 	
  

 
	
 11.3

 	
  

 	
 Agency fee 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall pay to the Agent (for its own account) an agency fee in the
 amount and at the times agreed in a Fee Letter. 

 

33

SECTION 6 - ADDITIONAL PAYMENT
OBLIGATIONS

	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 Tax gross-up and
 indemnities 

 
	
  

 	
  

 	
  

 
	
 12.1

 	
  

 	
 Definitions 

 
	
  

 	
  

 	
  

 
	
 12.1.1

 	
  

 	
 In this
 Agreement: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Protected Party means a Finance Party
 which is or will be subject to any liability, or required to make any
 payment, for or on account of Tax in relation to a sum received or receivable
 (or any sum deemed for the purposes of Tax to be received or receivable)
 under a Finance Document. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tax Deduction means a deduction or
 withholding for or on account of Tax from a payment under a Finance Document
 (other than a Hedging Contract). 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tax Payment means either the
 increase in a payment made by an Obligor to a Finance Party under clause 12.2
 (Tax gross-up) or a payment
 under clause 12.3 (Tax indemnity).
 

 
	
  

 	
  

 	
  

 
	
 12.1.2

 	
  

 	
 Unless a
 contrary indication appears, in this clause 12 a reference to determines or determined means a
 determination made in the absolute discretion of the person making the
 determination. 

 
	
  

 	
  

 	
  

 
	
 12.2

 	
  

 	
 Tax gross-up 

 
	
  

 	
  

 	
  

 
	
 12.2.1

 	
  

 	
 Each
 Obligor shall make all payments to be made by it under any Finance Document
 without any Tax Deduction, unless a Tax Deduction is required by law. 

 
	
  

 	
  

 	
  

 
	
 12.2.2

 	
  

 	
 The
 Borrowers shall, promptly upon any of them becoming aware that an Obligor
 must make a Tax Deduction (or that there is any change in the rate or the
 basis of a Tax Deduction), notify the Agent accordingly. Similarly, a Lender
 shall notify the Agent on becoming so aware in respect of a payment payable
 to that Lender. If the Agent receives such notification from a Lender it
 shall notify the Borrowers and that Obligor. 

 
	
  

 	
  

 	
  

 
	
 12.2.3

 	
  

 	
 If a Tax
 Deduction is required by law to be made by an Obligor, the amount of the
 payment due from that Obligor under the relevant Finance Document shall be
 increased to an amount which (after making any Tax Deduction) leaves an
 amount equal to the payment which would have been due if no Tax Deduction had
 been required. 

 
	
  

 	
  

 	
  

 
	
 12.2.4

 	
  

 	
 If an
 Obligor is required to make a Tax Deduction, that Obligor shall make that Tax
 Deduction and any payment required in connection with that Tax Deduction
 within the time allowed and in the minimum amount required by law. 

 
	
  

 	
  

 	
  

 
	
 12.2.5

 	
  

 	
 Within
 30 days of making either a Tax Deduction or any payment required in
 connection with that Tax Deduction, the Obligor making that Tax Deduction
 shall deliver to the Agent for the Finance Party entitled to the payment
 evidence reasonably satisfactory to that Finance Party that the Tax Deduction
 has been made or (as applicable) any appropriate payment paid to the relevant
 taxing authority. 

 
	
  

 	
  

 	
  

 
	
 12.2.6

 	
  

 	
 This
 clause 12.2 shall not apply in respect of any payments under any Hedging
 Contract, where the gross up provisions of the relevant Hedging Master
 Agreement itself shall apply. 

 
	
  

 	
  

 	
  

 
	
 12.3

 	
  

 	
 Tax indemnity 

 
	
  

 	
  

 	
  

 
	
 12.3.1

 	
  

 	
 The
 Borrowers shall (within three Business Days of demand by the Agent) pay to a
 Protected Party an amount equal to the loss, liability or cost which that
 Protected Party determines will be or has been (directly or indirectly)
 suffered for or on account of Tax by that Protected Party in respect of a
 Finance Document. 

 
	
  

 	
  

 	
  

 
	
 12.3.2

 	
  

 	
 Clause 12.3.1 above shall not
 apply: 

 

34

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 with
 respect to any Tax assessed on a Finance Party: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 under
 the law of the jurisdiction in which that Finance Party is incorporated or,
 if different, the jurisdiction (or jurisdictions) in which that Finance Party
 is treated as resident for tax purposes; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 under
 the law of the jurisdiction in which that Finance Party’s Facility Office is
 located in respect of amounts received or receivable in that jurisdiction, 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 if that
 Tax is imposed on or calculated by reference to the overall net income
 received or receivable (but not any sum deemed to be received or receivable)
 by that Finance Party; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to the
 extent a loss, liability or cost is compensated for by an increased payment
 under clause 12.2 (Tax gross-up).
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.3.3

 	
  

 	
 A
 Protected Party making, or intending to make a claim under clause 12.3.1
 above shall promptly notify the Agent of the event which will give, or has
 given, rise to the claim, following which the Agent shall notify the
 Borrowers. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.3.4

 	
  

 	
 A
 Protected Party shall, on receiving a payment from an Obligor under this
 clause 12.3, notify the Agent. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.4

 	
  

 	
 Stamp taxes 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall pay and, within three Business Days of demand, indemnify each
 Finance Party against any cost, loss or liability that Finance Party incurs
 in relation to all stamp duty, registration and other similar Taxes payable
 in respect of any Finance Document. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5

 	
  

 	
 Value added tax 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5.1

 	
  

 	
 All
 amounts set out, or expressed to be payable under a Finance Document by any
 party to a Finance Party which (in whole or in part) constitute the
 consideration for VAT purposes shall be deemed to be exclusive of any VAT
 which is chargeable on such supply, and accordingly, subject to clause 12.5.3
 below, if VAT is charged on any supply made by any Finance Party to any party
 under a Finance Document, that party shall pay to the Finance Party (in
 addition to and at the same time as paying the consideration) an amount equal
 to the amount of the VAT (and such Finance Party shall promptly provide an
 appropriate VAT invoice to such party). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5.2

 	
  

 	
 If VAT
 is charged on any supply made by any Finance Party (the Supplier) to any other Finance Party (the
 Recipient) under a Finance
 Document, and any party to a Finance Document (the Relevant Party) is required by the terms of any Finance
 Document to pay an amount equal to the consideration for such supply to the
 Supplier (rather than being required to reimburse the Recipient in respect of
 that consideration), the Relevant Party shall also pay to the Supplier (in
 addition to and at the same time as paying such amount) an amount equal to
 the amount of such VAT. The Recipient will promptly pay to the Relevant Party
 an amount equal to any credit or repayment from the relevant tax authority
 which it reasonably determines relates to the VAT charged on that supply. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5.3

 	
  

 	
 Where a
 Finance Document requires any party to it to reimburse a Finance Party for
 any costs or expenses, that party shall also at the same time pay and
 indemnify the Finance Party against all VAT incurred by the Finance Party in
 respect of the costs or expenses to the extent that the Finance Party
 reasonably determines that neither it nor any other member of any group of
 which it is a member for VAT purposes is entitled to credit or repayment of
 the VAT. 

 

35

	
  

 	
  

 	
  

 	
  

 
	
 13

 	
  

 	
 Increased Costs 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.1

 	
  

 	
 Increased Costs 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.1.1

 	
  

 	
 Subject
 to clause 13.3 (Exceptions),
 the Borrowers shall, within three Business Days of a demand by the Agent, pay
 for the account of a Finance Party the amount of any Increased Costs incurred
 by that Finance Party or any of its Affiliates as a result of (a) the
 introduction of or any change in (or in the interpretation, administration or
 application of) any law or regulation or (b) compliance with any law or
 regulation in either case made after the date of this Agreement and/or (c) is
 a Basel III Increased Cost. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.1.2

 	
  

 	
 In this
 Agreement Increased Costs means:
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 a
 reduction in the rate of return from the Facility or on a Finance Party’s (or
 its Affiliate’s) overall capital; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 an
 additional or increased cost; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 a
 reduction of any amount due and payable under any Finance Document, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 which is
 incurred or suffered by a Finance Party or any of its Affiliates to the
 extent that it is attributable to that Finance Party having entered into its
 Commitment or funding or performing its obligations under any Finance
 Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.2

 	
  

 	
 Increased Cost claims 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.2.1

 	
  

 	
 A
 Finance Party intending to make a claim pursuant to clause 13.1 (Increased costs) shall notify the Agent
 of the event giving rise to the claim, following which the Agent shall
 promptly notify the Borrowers. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.2.2

 	
  

 	
 Each
 Finance Party shall, as soon as practicable after a demand by the Agent,
 provide a certificate confirming the amount of its Increased Costs. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.3

 	
  

 	
 Exceptions 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.3.1

 	
  

 	
 Clause
 13.1 (Increased Costs) does not
 apply to the extent any Increased Cost is: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 attributable
 to a Tax Deduction required by law to be made by an Obligor; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 compensated
 for by clause 12.3 (Tax indemnity)
 (or would have been compensated for under clause 12.3 (Tax indemnity) but was not so
 compensated solely because any of the exclusions in clause 12.3.2 applied); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 compensated
 for by the payment of the Mandatory Cost; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 attributable
 to the wilful breach by the relevant Finance Party or its Affiliates of any
 law or regulation. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.3.2

 	
  

 	
 In this
 clause 13.3, a reference to a Tax Deduction
 has the same meaning given to the term in clause 12.1 (Definitions). 

 
	
  

 	
  

 	
  

 	
  

 
	
 14

 	
  

 	
 Other indemnities
 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1

 	
  

 	
 Currency indemnity 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1.1

 	
  

 	
 If any
 sum due from an Obligor under the Finance Documents (a Sum), or any order, judgment or award
 given or made in relation to a Sum, has to be converted from the currency
 (the First Currency) in which
 that Sum is payable into another currency (the Second Currency) for the purpose of: 

 

36

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 making
 or filing a claim or proof against that Obligor; and/or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 obtaining
 or enforcing an order, judgment or award in relation to any litigation or
 arbitration proceedings, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 that
 Obligor shall, as an independent obligation, within three Business Days of
 demand by a Finance Party, indemnify each Finance Party to whom that Sum is
 due against any cost, loss or liability arising out of or as a result of the
 conversion including any discrepancy between (i) the rate of exchange used to
 convert that Sum from the First Currency into the Second Currency and (ii)
 the rate or rates of exchange available to that person at the time of its
 receipt of that Sum. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1.2

 	
  

 	
 Each
 Obligor waives any right it may have in any jurisdiction to pay any amount
 under the Finance Documents in a currency or currency unit other than that in
 which it is expressed to be payable. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.2

 	
  

 	
 Other indemnities 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall (or shall procure that another Obligor will), within three
 Business Days of demand by a Finance Party, indemnify each Finance Party
 against any cost, loss or liability incurred by that Finance Party as a
 result of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 occurrence of any Event of Default; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a
 failure by an Obligor to pay any amount due under a Finance Document on its
 due date, including without limitation, any cost, loss or liability arising
 as a result of clause 34 (Sharing among
 the Finance Parties); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 funding,
 or making arrangements to fund, its participation in the Loan requested by
 the Borrowers in a Utilisation Request but not made by reason of the
 operation of any one or more of the provisions of this Agreement (other than
 by reason of default or negligence by that Finance Party) alone; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Loan
 (or part of the Loan) not being prepaid in accordance with a notice of
 prepayment given by the Borrowers. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.3

 	
  

 	
 Indemnity to the Agent and the Security Agent 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall promptly indemnify the Agent and the Security Agent against
 any cost, loss or liability incurred by the Agent (acting reasonably) as a
 result of 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 investigating
 any event which it reasonably believes is a Default; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 acting
 or relying on any notice, request or instruction which it reasonably believes
 to be genuine, correct and appropriately authorised; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any
 action taken by the Agent or any of its representatives, agents or
 contractors in connection with any powers conferred by any Security Document
 to remedy any breach of any Obligor’s obligations under the Finance
 Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.4

 	
  

 	
 Indemnity concerning security 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.4.1

 	
  

 	
 The
 Borrowers shall (or shall procure that another Obligor will) promptly
 indemnify each Indemnified Person against any cost, expense, loss or
 liability incurred by it in connection with: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 taking, holding, protection or enforcement of the Security Documents; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 exercise or purported exercise of any of the rights, powers, discretions and
 remedies vested in the Security Agent and each Receiver by the Finance
 Documents or 

 

37

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 by law
 unless and to the extent that it was caused by its gross negligence or wilful
 misconduct;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any
 claim (whether relating to the environment or otherwise) made or asserted
 against the Indemnified Person which would not have arisen but for the
 execution or enforcement of one or more Finance Documents (unless and to the
 extent it is caused by the gross negligence or wilful misconduct of that
 Indemnified Person); or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any
 breach by any Obligor of the Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.4.2

 	
  

 	
 The
 Security Agent may, in priority to any payment to the other Finance Parties,
 indemnify itself out of the Trust Property in respect of, and pay and retain,
 all sums necessary to give effect to the indemnity in this clause 14.4 and
 shall have a lien on the Security Documents and the proceeds of the enforcement
 of the Security Documents for all monies payable to it. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.5

 	
  

 	
 Exclusion of liability 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 Indemnified Person will be in any way liable or responsible to any Obligor
 (whether as mortgagee in possession or otherwise) who is a Party or is a party
 to a Finance Document to which this clause applies for any loss or liability
 arising from any act, default, omission or misconduct of that Indemnified
 Person, except to the extent caused by its own gross negligence or wilful
 misconduct. Any Indemnified Person may rely on this clause 14.5 subject to
 clause 1.3 (Third party rights)
 and the provisions of Third Parties Act. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.6

 	
  

 	
 Fax and email indemnity 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall indemnify each Finance Party against any cost, claim, loss,
 expense or liability together with any VAT thereon which any of the Finance
 Parties may sustain or incur as a consequence of any fax or email
 communication purporting to originate from the Borrowers to the Agent or the
 Security Agent being made or delivered fraudulently or without proper
 authorisation (unless such cost, claim, loss, expense or liability is the
 direct result of the gross negligence or wilful misconduct of the relevant
 Finance Party or the Agent or the Security Agent). 

 
	
  

 	
  

 	
  

 	
  

 
	
 15

 	
  

 	
 Mitigation by the
 Lenders 

 
	
  

 	
  

 	
  

 	
  

 
	
 15.1

 	
  

 	
 Mitigation 

 
	
  

 	
  

 	
  

 	
  

 
	
 15.1.1

 	
  

 	
 Each
 Finance Party shall, in consultation with the Borrowers, take all reasonable
 steps to mitigate any circumstances which arise and which would result in any
 amount becoming payable under or pursuant to, or cancelled pursuant to, any
 of clause 7.1 (Illegality),
 clause 12 (Tax gross-up and indemnities),
 clause 13 (Increased costs) or
 paragraph 3 of Schedule 6 (Mandatory Cost
 formulae) including (but not limited to) transferring its rights
 and obligations under the Finance Documents to another Affiliate or Facility
 Office. 

 
	
  

 	
  

 	
  

 	
  

 
	
 15.1.2

 	
  

 	
 Clause
 15.1.1 does not in any way limit the obligations of any Obligor under the
 Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 15.2

 	
  

 	
 Limitation of liability 

 
	
  

 	
  

 	
  

 	
  

 
	
 15.2.1

 	
  

 	
 The
 Borrowers shall promptly indemnify each Finance Party for all costs and
 expenses incurred by that Finance Party as a result of steps taken by it
 under clause 15.1 (Mitigation).
 

 
	
  

 	
  

 	
  

 	
  

 
	
 15.2.2

 	
  

 	
 A
 Finance Party is not obliged to take any steps under clause 15.1 (Mitigation) if, in the opinion of that
 Finance Party (acting reasonably), to do so might be prejudicial to it. 

 

38

	
  

 	
  

 	
  

 	
  

 
	
 16

 	
  

 	
 Costs and
 expenses 

 
	
  

 	
  

 	
  

 	
  

 
	
 16.1

 	
  

 	
 Transaction expenses 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall promptly within five Business Days of demand pay the Agent
 and the Arrangers and the Security Agent the amount of all costs and expenses
 (including reasonable fees, costs and expenses of legal advisers and, subject
 to clause 22.17, insurance and other consultants and advisers) incurred by
 any of them (and by any Receiver) in connection with the negotiation,
 preparation, printing, execution, syndication, registration and perfection
 and any release, discharge or reassignment of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 this
 Agreement, the Hedging Master Agreements and any other documents referred to
 in this Agreement, the Hedging Master Agreements and the Original Security
 Documents; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any
 other Finance Documents executed or proposed to be executed after the date of
 this Agreement including any executed to provide additional security under
 clause 23 (Minimum security value); or
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any
 Security Interest expressed or intended to be granted by a Finance Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
 16.2

 	
  

 	
 Amendment costs 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If an
 Obligor requests an amendment, waiver or consent, the Borrowers shall, within
 five Business Days of demand by the Agent, reimburse the Agent for the amount
 of all costs and expenses (including reasonable fees, costs and expenses of
 legal advisers and insurance and other consultants and advisers) incurred by
 the Agent and the Security Agent (and by any Receiver) in responding to,
 evaluating, negotiating or complying with that request or requirement. 

 
	
  

 	
  

 	
  

 	
  

 
	
 16.3

 	
  

 	
 Enforcement and preservation costs 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall within five Business Days of demand by a Finance Party, pay
 to each Finance Party the amount of all costs and expenses (including fees,
 costs and expenses of legal advisers and insurance and other consultants and
 advisers) properly incurred by that Finance Party in connection with the
 enforcement of, or the preservation of any rights under, any Finance Document
 and any proceedings initiated by or against any Indemnified Person and as a
 consequence of holding the Charged Property or enforcing those rights. 

 

39

SECTION 7 - REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	
  

 	
  

 	
  

 	
  

 
	
 17

 	
  

 	
 Representations 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of
 the Borrowers makes and repeats the representations and warranties set out in
 this clause 17 to each Finance Party at the times specified in clause 17.32 (Times when representations are made). 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1

 	
  

 	
 Status 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1.1

 	
  

 	
 Each
 Obligor and the Manager is duly incorporated and validly existing under the
 laws of the jurisdiction of its incorporation as a limited liability company
 or corporation and has no centre of main interests, permanent establishment
 or place of business outside the jurisdiction in which it is incorporated
 (save as notified to the Agent) and is in compliance with its Constitutional
 Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1.2

 	
  

 	
 Each
 Obligor and the Manager has power and authority to carry on its business as
 it is now being conducted and to own its property and other assets. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.2

 	
  

 	
 Binding obligations 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject
 to the Legal Reservations, the obligations expressed to be assumed by each
 Obligor in each Finance Document, Charter Document or Building Contract
 Document to which it is, or is to be, a party are or, when entered into by
 it, will be legal, valid, binding and enforceable obligations and each
 Security Document to which an Obligor is, or will be, a party, creates or
 will create the Security Interests which that Security Document purports to
 create and those Security Interests are or will be valid and effective. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.3

 	
  

 	
 Power and authority 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.3.1

 	
  

 	
 Each
 Obligor has, or will have when entered into by it, power to enter into,
 perform and deliver and comply with its obligations under, and has taken, or
 will take when entered into by it, all necessary action to authorise its
 entry into, each Finance Document, Charter Document or Building Contract
 Document to which it is or will be a party. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.3.2

 	
  

 	
 No
 limitation on any Obligor’s powers to borrow, create security or give
 guarantees will be exceeded as a result of any transaction under, or the
 entry into of, any Finance Document, Charter Document or Building Contract
 Document to which such Obligor is, or is to be, a party, with effect on and
 from the date of the relevant Finance Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.4

 	
  

 	
 Non-conflict 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 entry into and performance by each Obligor and the Manager of, and the
 transactions contemplated by the Finance Documents, the Charter Documents and
 the Building Contract Documents and the granting of the Security Interests
 purported to be created by the Security Documents do not and will not
 conflict with: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any law
 or regulation applicable to any Obligor or the Manager; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 Constitutional Documents of any Obligor or the Manager; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any
 agreement or other instrument binding upon any Obligor or the Manager or its
 assets or constitute a default or termination event (however described) under
 any such agreement or instrument, or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 result
 in the creation of any Security Interest (save for a Permitted Maritime Lien
 or under a Security Document) on such Obligor’s (or the Manager’s) assets,
 rights or revenues. 

 

40

	
  

 	
  

 	
  

 	
  

 
	
 17.5

 	
  

 	
 Validity and admissibility in evidence 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.5.1

 	
  

 	
 All
 authorisations required or desirable: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to
 enable each Obligor lawfully to enter into, exercise its rights and comply
 with its obligations under each Finance Document and any Charter Document or
 Building Contract Document to which it is a party; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to make
 each Finance Document and any Charter Document or Building Contract Document
 to which it is a party admissible in evidence in its Relevant Jurisdiction;
 and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 to
 ensure that each of the Security Interests created under the Security
 Documents has the priority and ranking contemplated by them, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 have
 been obtained or effected or, as the case may be, will be obtained or
 effected when entered into, and are or, as the case may be, will be when
 entered into, in full force and effect except any authorisation or filing
 referred to in clause 17.12 (No filing or
 stamp taxes), which authorisation or filing will be promptly
 obtained or effected within any applicable period. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.5.2

 	
  

 	
 All
 authorisations necessary for the conduct of the business, trade and ordinary
 activities of each Obligor and the Manager have been obtained or effected and
 are in full force and effect if failure to obtain or effect those
 authorisations might have a Material Adverse Effect. 

 
	
  

 	
  

 	
  

 
	
 17.6

 	
  

 	
 Governing law and enforcement 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.6.1

 	
  

 	
 The
 choice of governing law as provided in any Finance Document and any Charter
 Document or Building Contract Document will be recognised and enforced in
 each Obligor’s Relevant Jurisdiction. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.6.2

 	
  

 	
 Any
 judgment obtained in England in relation to an Obligor will be recognised and
 enforced in each Obligor’s Relevant Jurisdictions. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7

 	
  

 	
 Information 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.1

 	
  

 	
 Any
 Information is true and accurate in all material respects at the time it was
 given or made. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.2

 	
  

 	
 Any
 Information provided to the Agent or any other Finance Party is true and
 accurate in all material aspects at the time that the Repeating
 Representations are repeated. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.3

 	
  

 	
 There
 are no facts or circumstances or any other information which could make the
 Information incomplete, untrue, inaccurate or misleading in any material
 respect. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.4

 	
  

 	
 The
 Information does not omit anything which could make the Information
 incomplete, untrue, inaccurate or misleading in any material respect. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.5

 	
  

 	
 All
 opinions, projections, forecasts or expressions of intention contained in the
 Information and the assumptions on which they are based have been arrived at
 after due and careful enquiry and consideration and were believed to be
 reasonable by the person who provided that Information as at the date it was
 given or made. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.6

 	
  

 	
 For the
 purposes of this clause 17.7, “Information”
 means: any information provided by any Obligor to any of the Finance Parties
 in connection with the Finance Documents, Charter Documents or Building
 Contract Documents or the transactions referred to in them. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.8

 	
  

 	
 Original Financial Statements 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.8.1

 	
  

 	
 The
 Original Financial Statements were prepared in accordance with GAAP
 consistently applied. 

 

41

	
  

 	
  

 	
  

 
	
 17.8.2

 	
  

 	
 The
 audited Original Financial Statements give a true and fair view of the
 financial condition and results of operations of the relevant Obligors and
 the relevant Group (consolidated in the case of such Group) during the
 relevant financial year. 

 
	
  

 	
  

 	
  

 
	
 17.8.3

 	
  

 	
 There
 has been no material adverse change in its assets, business or financial
 condition (or the assets, business or consolidated financial condition of any
 of the Obligors or any Group) since the date of the Original Financial
 Statements. 

 
	
  

 	
  

 	
  

 
	
 17.9

 	
  

 	
 Pari passu ranking 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Obligor’s payment obligations under the Finance Documents rank at least pari
 passu with all its other present and future unsecured and unsubordinated
 payment obligations, except for obligations mandatorily preferred by law
 applying to companies generally. 

 
	
  

 	
  

 	
  

 
	
 17.10

 	
  

 	
 Ranking and effectiveness of security 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject
 to the Legal Reservations and any filing, registration or notice requirements
 which is referred to in any legal opinion delivered to the Agent under clause
 4.1 (Conditions precedent), the
 security created by the Security Documents has (or will have when the
 Security Documents have been executed) the priority which it is expressed to
 have in the Security Documents, the Charged Property is not subject to any
 Security Interest other than Permitted Security Interests and such security
 will constitute perfected security on the assets described in the Security
 Documents. 

 
	
  

 	
  

 	
  

 
	
 17.11

 	
  

 	
 No insolvency 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 corporate action, legal proceeding or other procedure or step described in
 clause 28.10 (Insolvency proceedings)
 or creditors’ process described in clause 28.11 (Creditors’ process) has been taken or, to the knowledge of
 any Obligor or the Manager, threatened in relation to an Obligor or the
 Manager or a Subsidiary of an Obligor and none of the circumstances described
 in clause 28.9 (Insolvency)
 applies to an Obligor or the Manager or a Subsidiary of an Obligor or any
 Finance Document and any Charter Document or Building Contract Document to
 which it is, or is to be, party. 

 
	
  

 	
  

 	
  

 
	
 17.12

 	
  

 	
 No filing or stamp taxes 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Under
 the laws of each Obligor’s Relevant Jurisdictions it is not necessary that
 any Finance Document and any Charter Document or Building Contract Document
 to which it is, or is to be, party be filed, recorded or enrolled with any
 court or other authority in that jurisdiction or that any stamp,
 registration, notarial or similar Taxes or fees be paid on or in relation to
 any such Finance Document and any Charter Document or Building Contract
 Document or the transactions contemplated by the Finance Documents except any
 filing, recording or enrolling or any tax or fee payable in relation to any
 Finance Document which is referred to in any legal opinion delivered to the
 Agent under clause 4.1 (Conditions
 precedent) and which will be made or paid promptly after the date
 of the relevant Finance Document. 

 
	
  

 	
  

 	
  

 
	
 17.13

 	
  

 	
 Deduction of Tax 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 Obligor is required to make any deduction for or on account of Tax from any
 payment it may make under any Finance Document to which it is, or is to be, a
 party and no other party is required to make any such deduction from any payment
 it may make under any Charter Document or Building Contract Document. 

 
	
  

 	
  

 	
  

 
	
 17.14

 	
  

 	
 No Default 

 
	
  

 	
  

 	
  

 
	
 17.14.1

 	
  

 	
 No
 Default is continuing or is reasonably likely to result from the making of
 any Utilisation or the entry into, the performance of, or any transaction
 contemplated by, any Finance Document and any Charter Document or Building
 Contract Document and no breach has occurred by the Borrowers of any Charter
 Documents or Building Contract Documents. 

 

42

	
  

 	
  

 	
  

 
	
 17.14.2

 	
  

 	
 No other
 event or circumstance is outstanding which constitutes (or, with the expiry
 of a grace period, the giving of notice, the making of any determination or
 any combination of any of the foregoing, would constitute) a default or
 termination event (however described) under any other agreement or instrument
 which is binding on any Obligor or the Manager or to which any Obligor’s or
 the Manager’s assets are subject which might have a Material Adverse Effect. 

 
	
  

 	
  

 	
  

 
	
 17.15

 	
  

 	
 No proceedings pending or threatened 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 litigation, arbitration or administrative proceedings or investigations of,
 or before, any court, arbitral body or agency which, if adversely determined,
 might reasonably be expected to have a Material Adverse Effect have (to the
 best of any Obligor’s or the Manager’s knowledge and belief) been started or
 threatened against any Obligor or the Manager or any Subsidiary of an
 Obligor. 

 
	
  

 	
  

 	
  

 
	
 17.16

 	
  

 	
 No breach of laws 

 
	
  

 	
  

 	
  

 
	
 17.16.1

 	
  

 	
 No
 Obligor nor the Manager or Subsidiary of an Obligor or the Manager has
 breached any law or regulation which might have a Material Adverse Effect. 

 
	
  

 	
  

 	
  

 
	
 17.16.2

 	
  

 	
 No
 labour dispute is current or, to the best of any Obligor’s or the Manager’s
 knowledge and belief, threatened against any Obligor or the Manager or any
 Subsidiary of an Obligor which may have a Material Adverse Effect. 

 
	
  

 	
  

 	
  

 
	
 17.17

 	
  

 	
 Environmental matters 

 
	
  

 	
  

 	
  

 
	
 17.17.1

 	
  

 	
 No
 Environmental Law applicable to any Fleet Vessel and/or any Obligor or the
 Manager or any Subsidiary of an Obligor has been violated in a manner or
 circumstances which might have, a Material Adverse Effect. 

 
	
  

 	
  

 	
  

 
	
 17.17.2

 	
  

 	
 All
 consents, licences and approvals required under such Environmental Laws have
 been obtained and are currently in force. 

 
	
  

 	
  

 	
  

 
	
 17.17.3

 	
  

 	
 No
 Environmental Claim has been made or threatened or is pending against any
 Obligor or any Subsidiary of an Obligor or any Fleet Vessel where that claim
 might have a Material Adverse Effect and there has been no Environmental
 Incident which has given, or might give, rise to such a claim. 

 
	
  

 	
  

 	
  

 
	
 17.18

 	
  

 	
 Taxation 

 
	
  

 	
  

 	
  

 
	
 17.18.1

 	
  

 	
 No
 Obligor or Subsidiary of an Obligor nor the Manager is materially overdue in
 the filing of any Tax returns or overdue in the payment of any amount in
 respect of Tax. 

 
	
  

 	
  

 	
  

 
	
 17.18.2

 	
  

 	
 No
 claims or investigations are being, or are reasonably likely to be, made or
 conducted against any Obligor or the Manager or any Subsidiary of an Obligor
 with respect to Taxes such that a liability of, or claim against, any Obligor
 or the Manager or any Subsidiary of an Obligor is reasonably likely to arise
 for an amount for which adequate reserves have not been provided in the
 Original Financial Statements and which might have a Material Adverse Effect.
 

 
	
  

 	
  

 	
  

 
	
 17.18.3

 	
  

 	
 Except
 as advised to the Agent prior to the date of this Agreement, each Obligor and
 the Manager is resident for Tax purposes only in the jurisdiction of its
 incorporation. 

 
	
  

 	
  

 	
  

 
	
 17.19

 	
  

 	
 Security
and Financial Indebtedness

 
	
  

 	
  

 	
  

 
	
 17.19.1

 	
  

 	
 No
 Security Interest exists over all or any of the present or future assets of
 the Borrowers in breach of this Agreement, other than the Permitted Security
 Interests. 

 
	
  

 	
  

 	
  

 
	
 17.19.2

 	
  

 	
 None of
 the Borrowers has any other Financial Indebtedness outstanding in breach of
 this Agreement. 

 

43

	
  

 	
  

 	
  

 	
  

 
	
 17.20

 	
  

 	
 Legal and beneficial ownership 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of
 the Borrowers and GasLog Carriers is, or will be, when granted, the sole
 legal and beneficial owner of the respective assets over which it purports to
 grant a Security Interest under the Security Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.21

 	
  

 	
 Shares 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 shares of each Borrower are fully paid and not subject to any option to
 purchase or similar rights. The Constitutional Documents of each Borrower do
 not and could not restrict or inhibit any transfer of those shares on
 creation or enforcement of the Security Documents. There are no agreements in
 force which provide for the issue or allotment of, or grant any person the
 right to call for the issue or allotment of, any share or loan capital of
 each Borrower (including any option or right of pre-emption or conversion). 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.22

 	
  

 	
 Accounting Reference Date 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 accounting reference date of each Obligor is the Accounting Reference Date. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.23

 	
  

 	
 No adverse consequences 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.23.1

 	
  

 	
 It is
 not necessary under the laws of the Relevant Jurisdictions of any Obligor: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in order
 to enable any Finance Party to enforce its rights under any Finance Document;
 or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 by
 reason of the execution of any Finance Document or the performance by any
 Obligor of its obligations under any Finance Document, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 that any
 Finance Party should be licensed, qualified or otherwise entitled to carry on
 business in any of such Relevant Jurisdictions. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.23.2

 	
  

 	
 No
 Finance Party is or will be deemed to be resident, domiciled or carrying on
 business in any Relevant Jurisdiction by reason only of the execution,
 performance and/or enforcement of any Finance Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.24

 	
  

 	
 Copies of documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 copies of the Charter Documents, the Building Contract Documents and the
 Constitutional Documents of the Obligors delivered to the Agent under clause
 4 (Conditions of Utilisation)
 will be true, complete and accurate copies of such documents and include all
 amendments and supplements to them as at the time of such delivery and no
 other agreements or arrangements exist between any of the parties to any
 Charter Document or Building Contract Document which would materially affect
 the transactions or arrangements contemplated by any Charter Document or
 Building Contract Document or modify or release the obligations of any party
 under that Charter Document or Building Contract Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.25

 	
  

 	
 No breach of any Charter Document or Building Contract
 Document 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Owner
 (so far as the Borrowers are aware) nor any other person is in breach of any
 Charter Document or Building Contract Document to which it is a party nor has
 anything occurred which entitles or may entitle any party to any Charter
 Document or Building Contract Document to rescind or terminate it or decline
 to perform their obligations under it. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.26

 	
  

 	
 No immunity 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 Obligor or any of its assets is immune to any legal action or proceeding. 

 

44

	
  

 	
  

 	
  

 	
  

 
	
 17.27

 	
  

 	
 Ship status 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Ship will on the first day of the relevant Mortgage Period be: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 registered
 provisionally in the name of the relevant Owner through the relevant Registry
 as a ship under the laws and flag of the relevant Flag State; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 operationally
 seaworthy and in every way fit for service; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 classed
 with the relevant Classification free of all requirements and recommendations
 of the relevant Classification Society; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 insured
 in the manner required by the Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.28

 	
  

 	
 Ship’s employment 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Ship shall on the first day of the relevant Mortgage Period, or such other
 approved time: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 have
 been delivered, and accepted for service, under the relevant Charter; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 be free
 of any charter commitment other than the relevant Charter.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.29

 	
  

 	
 Address commission

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 There
 are no rebates, commissions or other payments in connection with any Building
 Contract, any Charter or any Replacement Charter other than those referred to
 in it and as disclosed by the Borrowers to and approved by the Agent on the
 date of this Agreement. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.30

 	
  

 	
 Other Finance Arrangements 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 Obligor (acting in any capacity whatsoever) has agreed to cross-default
 provisions as part of another loan or credit agreement entered into with a
 financier which are more beneficial to that financier than those provisions
 set out in clause 28.6 (Cross-Default)
 other than those disclosed to, and approved by, the Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.31

 	
  

 	
 No money laundering 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In
relation to the borrowing by the Borrowers of the Loan, the performance and
discharge of their obligations and liabilities under the Finance Documents
and the transactions and other arrangements effected or contemplated by this
Agreement, each of the Borrowers is acting for its own account and the
foregoing will not involve or lead to a contravention of any law, official
requirement or other regulatory measure or procedure which has been
implemented by any relevant regulatory authority or otherwise to combat money
laundering (as defined in Article 1 of the Directive (2005/60/EC) of the
European Parliament and of the Council).  

 
	
  

 	
  

 	
  

 	
  

 
	
 17.32

 	
  

 	
 Times when representations are made 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.32.1

 	
  

 	
 All of
 the representations and warranties set out in this clause 17 (other than Ship
 Representations) are deemed to be repeated on the dates of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 this
 Agreement; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the first
 Utilisation Request; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the
 first Utilisation. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.32.2

 	
  

 	
 The
 Repeating Representations are deemed to be repeated on the dates of each
 subsequent Utilisation Request, the date of each Utilisation and the first
 day of each Interest Period. 

 

45

	
  

 	
  

 	
  

 	
  

 
	
 17.32.3

 	
  

 	
 All of
 the Ship Representations are deemed to be made and repeated on the first day
 of the Mortgage Period for the relevant Ship. 

 
	
  

 	
  

 	
  

 	
  

 
	
 17.32.4

 	
  

 	
 Each
 representation or warranty deemed to be made after the date of this Agreement
 shall be deemed to be made by reference to the facts and circumstances then
 existing at the date the representation or warranty is deemed to be made. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18

 	
  

 	
 Information
 undertakings 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Borrower undertakes that this clause 18 will remain in force during the
 Facility Period. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this
 clause 18: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Annual Financial Statements” means the
 financial statements for a financial year of each Group, the Borrowers, each
 of the Guarantors and each of the Counter Guarantors delivered pursuant to
 clause 18.1.1. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Half-Yearly Financial Statements” means
 the financial statements for a financial half year to 30 June of the relevant
 year of a Group, the Borrowers, each of the Guarantors and each of the
 Counter Guarantors delivered pursuant to clause 18.1.2. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.1

 	
  

 	
 Financial statements 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.1.1

 	
  

 	
 The
 Borrowers shall supply to the Agent or, as the case may be, shall procure
 that the Agent is supplied with as soon as the same become available, but in
 any event within 150 days after the end of the relevant financial year: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 audited consolidated financial statements of each Group for that financial
 year (the first of such statements being for the financial year ending 31
 December 2011); and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 audited financial statements (consolidated if appropriate) of the Borrowers
 and each of the Guarantors for that financial year (the first of such
 statements being for the financial year ending 31 December 2011). 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.1.2

 	
  

 	
 Each
 Borrower shall supply to the Agent or, as the case may be, shall procure that
 the Agent is supplied with as soon as the same become available, but in any
 event within 90 days after the end of each half year of the relevant
 financial year the unaudited financial statements (consolidated if appropriate)
 of each Group, the Borrowers, the Guarantors and the Counter Guarantors for
 that financial half year (the first such financial statements in respect of
 the Counter Guarantor being for the half year ended as of 30 June 2012) for
 that financial half-year. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.2

 	
  

 	
 Requirements as to financial statements 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.2.1

 	
  

 	
 The
 Borrowers shall procure that each set of Annual Financial Statements and
 Half-Yearly Financial Statements includes a profit and loss account, a
 balance sheet and a cashflow statement and that, in addition each set of
 Annual Financial Statements shall be audited by the Auditors. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.2.2

 	
  

 	
 Each set
 of financial statements delivered pursuant to clause 18.1 (Financial statements) shall: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 be
 prepared in accordance with GAAP; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 give a
 true and fair view of (in the case of Annual Financial Statements for any
 financial year), or fairly represent (in other cases), the financial
 condition and operations of the relevant Group or (as the case may be) the
 relevant Obligor as at the date as at which those financial statements were
 drawn up; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in the
 case of Annual Financial Statements, not be the subject of any qualification
 in the Auditors’ opinion. 

 

46

	
  

 	
  

 	
  

 	
  

 
	
 18.2.3

 	
  

 	
 The
 Borrowers shall procure that each set of financial statements delivered
 pursuant to clause 18.1 (Financial
 statements) shall be prepared using GAAP, accounting practices and
 financial reference periods consistent with those applied in the preparation
 of the Original Financial Statements, unless, in relation to any set of
 financial statements, the Borrowers notify the Agent that there has been a
 change in GAAP or the accounting practices and the Auditors deliver to the
 Agent: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 a
 description of any change necessary for those financial statements to reflect
 the GAAP or accounting practices and reference periods upon which
 corresponding Original Financial Statements were prepared; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 sufficient
 information, in form and substance as may be reasonably required by the
 Agent, to enable the Lenders to determine whether clause 5 of each of the
 Counter Guarantees (Financial covenants)
 and clause 5 (Financial covenants)
 of the GasLog Guarantee has been complied with and to make an accurate
 comparison between the financial position indicated in those financial
 statements and the Original Financial Statements. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any
 reference in this Agreement to any financial statements shall be construed as
 a reference to those financial statements as adjusted to reflect the basis upon
 which the Original Financial Statements were prepared. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.3

 	
  

 	
 Year-end 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.3.1

 	
  

 	
 The
 Borrowers shall procure that each financial year-end for each Obligor falls
 on the Accounting Reference Date. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.3.2

 	
  

 	
 The
 Borrowers shall procure that each accounting period ends on an accounting
 date. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.4

 	
  

 	
 Information: miscellaneous 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall supply to the Agent: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 at the
 same time as they are dispatched, copies of all material documents dispatched
 by any Obligor to its creditors (or any class of them); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 promptly
 upon becoming aware of them, the details of any litigation, arbitration or
 administrative proceedings which are current, threatened or pending against
 any Obligor or the Manager (other than STSCL) (subject always to any written
 confidentiality undertakings granted by the Manager to third parties from
 time to time) and which, if adversely determined, might have a Material
 Adverse Effect; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 promptly,
 such information as the Agent may reasonably require about the Charged
 Property and compliance of the Obligors with the terms of any Security
 Documents; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 promptly
 on request, such further information regarding the financial condition,
 commitments, assets and operations of the Borrowers, the Guarantors and the
 Manager as any Finance Party through the Agent may reasonably request; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 promptly,
 any requests made by the relevant Charterer under clause 19 of the master
 agreement of the relevant Charter. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.5

 	
  

 	
 Notification of Default

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall notify the Agent of any Default (and the steps, if any, being
 taken to remedy it) promptly upon the Borrowers (or any of them) becoming
 aware of its occurrence (unless it is aware that a notification has already
 been provided by another Obligor).

 

47

	
  

 	
  

 	
  

 	
  

 
	
 18.6

 	
  

 	
 Sufficient copies 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers, if so requested by the Agent, shall supply sufficient copies of
 each document to be supplied under the Finance Documents to the Agent to
 distribute to each of the Lenders and the Hedging Providers. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.7

 	
  

 	
  “Know your customer” checks 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.7.1

 	
  

 	
 If: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 introduction of or any change in (or in the interpretation, administration or
 application of) any law or regulation made after the date of this Agreement; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any
 change in the status of an Obligor or the composition of the shareholders of
 an Obligor after the date of this Agreement; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 a
 proposed assignment or transfer by a Lender or any Hedging Provider of any of
 its rights and/or obligations under this Agreement or any Hedging Contract to
 a party that is not a Lender or a Hedging Provider prior to such assignment
 or transfer, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 obliges
 the Agent, the relevant Hedging Provider, or any Lender (or, in the case of
 paragraph (c) above, any prospective new Lender or Hedging Provider) to
 comply with “know your customer” or similar identification procedures in
 circumstances where the necessary information is not already available to it,
 each Obligor shall promptly upon the request of the Agent or any Lender or
 any Hedging Provider supply, or procure the supply of, such documentation and
 other evidence as is reasonably requested by the Agent (for itself or on
 behalf of any Lender or any Hedging Provider) or any Lender or any Hedging
 Provider (for itself or, in the case of the event described in paragraph (c)
 above, on behalf of any prospective new Lender) in order for the Agent, such
 Lender or the relevant Hedging Provider or, in the case of the event
 described in paragraph (c) above, any prospective new Lender or Hedging
 Provider to carry out and be satisfied with the results of all necessary
 “know your customer” or other similar checks under all applicable laws and
 regulations pursuant to the transactions contemplated in the Finance
 Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 18.7.2

 	
  

 	
 Each
 Finance Party shall promptly upon the request of the Agent or the Security
 Agent supply, or procure the supply of, such documentation and other evidence
 as is reasonably requested by the Agent or the Security Agent (for itself) in
 order for it to carry out and be satisfied with the results of all necessary
 “know your customer” or other similar checks under all applicable laws and
 regulations pursuant to the transactions contemplated in the Finance
 Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19

 	
  

 	
 General
 undertakings 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Borrower undertakes or, as the case may be, shall procure that this clause 19
 will be complied with throughout the Facility Period. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.1

 	
  

 	
 Use of proceeds 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 proceeds of Utilisations will be used exclusively for the purposes specified
 in clause 3 (Purpose). 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.2

 	
  

 	
 Authorisations 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Obligor will promptly (and in connection with any Finance Document, as soon
 as such Finance Document is entered into): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 obtain,
 comply with and do all that is necessary to maintain in full force and
 effect; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 supply
 certified copies to the Agent of, 

 

48

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 any
 authorisation required under any law or regulation of a Relevant Jurisdiction
 to: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 enable
 it to perform its obligations under the Finance Documents and the Charter
 Documents or Building Contract Documents; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 ensure
 the legality, validity, enforceability or admissibility in evidence of any
 Finance Document or Charter Document or Building Contract Document; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 carry on
 its business where failure to do so has, or is reasonably likely to have, a
 Material Adverse Effect. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.3

 	
  

 	
 Compliance with laws 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Obligor and the Manager will comply in all respects with all laws and
 regulations (including Environmental Laws) to which it may be subject. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.4

 	
  

 	
 Taxation 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.4.1

 	
  

 	
 Each
 Obligor and the Manager shall pay and discharge all Taxes imposed upon it or
 its assets within such time period as may be allowed by law without incurring
 penalties unless and only to the extent that: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 such
 payment is being contested in good faith; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 adequate
 reserves are being maintained for those Taxes and the costs required to
 contest them which have been disclosed in its latest financial statements
 delivered to the Agent under clause 18.1 (Financial
 statements); and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 such
 payment can be lawfully withheld. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.4.2

 	
  

 	
 Except
 if there is an IPO or as otherwise approved by the Lenders, each Obligor
 shall maintain its residence for Tax purposes in the jurisdiction in which it
 is incorporated and ensure that it is not resident for Tax purposes in any
 other jurisdiction. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.5

 	
  

 	
 Change of business 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 as approved, no substantial change will be made to the general nature of the
 business of the Obligors and the Manager from that carried on at the date of
 this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.6

 	
  

 	
 Merger 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 if there is an IPO or as otherwise approved, no Obligor or Manager will enter
 into any amalgamation, demerger, merger, consolidation or corporate
 reconstruction. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.7

 	
  

 	
 Other Finance Arrangements 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 Obligor or Manager (acting in any capacity whatsoever) will agree to
 cross-default provisions as part of another loan or credit agreement entered
 into with a financier which are more beneficial to that financier than those
 provisions set out in clause 28.6 (Cross-Default)
 other than as notified to, and approved by, the Agent. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.8

 	
  

 	
 Further assurance 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.8.1

 	
  

 	
 Each
 Obligor shall promptly do all such acts or execute all such documents
 (including assignments, transfers, mortgages, charges, notices and
 instructions) as the Agent may reasonably specify (and in such form as the
 Agent may reasonably require in favour of the Security Agent or its
 nominee(s)) as provided under each Finance Document, as applicable: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to
 perfect the Security Interests created or intended to be created by that
 Obligor under or evidenced by the Security Documents (which may include the
 execution of a 

 

49

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 mortgage,
 charge, assignment or other security over all or any of the assets which are,
 or are intended to be, the subject of the Security Documents, excluding
 registration of the Guarantees and Counter Guarantees with the respective
 Companies Registry) or to protect or ensure the priority of such Security
 Interests or for the exercise of any rights, powers and remedies of the
 Security Agent or the Finance Parties provided by or pursuant to the Finance
 Documents or by law; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to
 confer on the Security Agent or on the Finance Parties Security Interests
 over any property and assets of that Obligor located in any jurisdiction
 equivalent or similar to the Security Interest intended to be conferred by or
 pursuant to the Security Documents; and/or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 to
 facilitate the realisation of the assets which are, or are intended to be,
 the subject of the Security Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.8.2

 	
  

 	
 Each
 Obligor shall take all such action as is available to it (including making
 all filings and registrations, excluding registration of the Guarantees and
 the Counter Guarantees with the respective Companies Registry) as may be
 necessary for the purpose of the creation, perfection, protection or
 maintenance of any Security Interest (or the priority of any Security
 Interest) conferred or intended to be conferred on the Security Agent or the
 Finance Parties by or pursuant to the relevant Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.9

 	
  

 	
 Negative pledge in respect of Charged Property 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as
 approved and for Permitted Maritime Liens, no Borrower or Guarantor will
 grant or allow to exist any Security Interest over any Charged Property. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.10

 	
  

 	
 Environmental matters 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.10.1

 	
  

 	
 Without
 prejudice to clause 18.5(b), the Agent will be notified as soon as reasonably
 practicable of any Environmental Claim being made against any Fleet Vessel or
 the owner of any Fleet Vessel or the Manager which, if successful to any
 extent, might reasonably be expected to have a Material Adverse Effect and of
 any Environmental Incident which may give rise to such a claim and will be
 kept regularly and promptly informed in reasonable detail of the nature of,
 and response to, any such Environmental Incident and the defence to any such
 claim. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.10.2

 	
  

 	
 Environmental
 Laws (and any consents, licences or approvals obtained under them) applicable
 to Fleet Vessels will not be violated in a way which might have a Material
 Adverse Effect. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.11

 	
  

 	
 Pari passu 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Obligor and the Manager will ensure that its obligations under the Finance
 Documents shall, without prejudice to the security intended to be created by
 the Security Documents, at all times rank at least pari passu with all its
 other present and future unsecured and unsubordinated Financial Indebtedness
 with the exception of any obligations which are mandatorily preferred by law
 and not by contract. 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.12

 	
  

 	
 Excess Cash recapture 

 
	
  

 	
  

 	
  

 	
  

 
	
 19.12.1

 	
  

 	
 In the event that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 Charterer of a Ship at any time advises an Owner under a Charter or a
 Replacement Charter that it will not exercise its option to extend the
 Charter or, as the case may be, the Replacement Charter of that Ship for the
 First Option Period (as defined in the relevant Charter or, as the case may
 be, relevant Replacement Charter); or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 that
 Charterer has not, on or before the date falling 18 months prior to the
 expiry of the Charter or the Replacement Charter of that Ship by effluxion of
 time, exercised its 

 

50

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 option
 to extend the relevant Charter or the relevant Replacement Charter for the
 First Option Period (as defined in that Charter or, as the case may be,
 Replacement Charter), 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 then, on
 or shortly after each Excess Cash Calculation Period, the Agent shall
 calculate the Excess Cash for that Excess Cash Calculation Period. The Agent
 shall make such calculation by reference to any information, documents, facts
 or data available to the Agent at that time, whether pursuant to the
 provisions of the Finance Documents or otherwise. If the Agent determines
 that the Excess Cash for an Excess Cash Calculation Period is a positive
 figure it will notify the Lenders and the Borrowers thereof and of the amount
 of such Excess Cash. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.12.2

 	
  

 	
 Forthwith
 after the Agent’s notification of positive excess cash in respect of an
 Excess Cash Calculation Period, the relevant Owner will pay to the Reserve
 Account (whether by transferring funds from the Revenue Account or otherwise)
 an amount equal to 90% of the Excess Cash for that Excess Cash Calculation
 Period and each of the Borrowers hereby authorises the Agent to instruct the
 Account Bank to effect any such transfer from the Revenue Account if that
 Owner fails to make such payment or transfer from the Revenue Account on the
 due date, it being understood and agreed that the Agent, the Lenders and the
 Account Bank shall be entitled (but not obliged) to effect any such transfer.
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.13

 	
  

 	
 IPO 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.13.1

 	
  

 	
 The
 Borrowers undertake that (a) no Default has occurred at the time when the IPO
 commences and when such IPO is completed and (b) following completion of an
 IPO, no IPO Change of Control will occur. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.13.2

 	
  

 	
 If an
 IPO has been completed, then: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 Finance Parties agree that, within 90 days after the Borrowers have notified
 the Agent that such IPO has been completed, they will instruct the Security
 Agent to, and the Security Agent will, release each of the Counter Guarantors
 from its obligations under its respective Counter Guarantees; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
Finance Parties will agree to enter into amendments to the Finance Documents
(including a supplemental agreement to this Agreement and the Guarantees
amending such terms as may be required, including, for the avoidance of
doubt, the definition of Group in clause 1.1), in such form and substance as
may be required by the Agent and at the cost and expense of the Borrowers,
which will effect and implement (inter alia) the following changes to the
Finance Documents:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 Maximum
 Leverage (as defined in the GasLog Guarantee) required under the GasLog
 Guarantee shall be reduced to 65%; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 Market
 Adjusted Net Worth (as defined in the GasLog Guarantee) required under the
 GasLog Guarantee shall be increased to $350,000,000; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 the restrictions
 on the payment of dividends by GasLog will be amended such that GasLog will
 be entitled to declare or pay dividends to its shareholders in respect of a
 financial year, at any time if: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (A)

 	
 it holds
 Cash and Cash Equivalents of at least 4% of Total Indebtedness (each such
 term as defined in the GasLog Guarantee); and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (B)

 	
 no
 Default shall have occurred at the time of declaration or payment of such
 dividends nor would occur as a result of the declaration or payment of such dividends.
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20

 	
  

 	
 Dealings with
 Ship 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Borrower undertakes that this clause 20 will be complied with in relation to
 each Ship throughout the relevant Ship’s Mortgage Period. 

 

51

	
  

 	
  

 	
  

 	
  

 
	
 20.1

 	
  

 	
 Ship’s name and registration 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 The
 Ship’s name shall only be changed after prior notice to the Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 The Ship
 shall be permanently registered with the relevant Registry within 90 days of
 the date of the Mortgage of the Ship and registered with the relevant
 Registry under the laws of its Flag State. Except with approval, the Ship
 shall not be registered under any other flag or at any other port or fly any
 other flag (other than that of its Flag State). If that registration is for a
 limited period, it shall be renewed at least 45 days before the date it is
 due to expire and the Agent shall be notified of that renewal at least 30
 days before that date. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Nothing
 will be done and no action will be omitted if that might result in such
 registration being forfeited or imperilled or the Ship being required to be
 registered under the laws of another state of registry. 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.2

 	
  

 	
 Sale or other disposal of Ship 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval, such approval not to be unreasonably withheld, the relevant
 Owner will not sell, or agree to, transfer, abandon or otherwise dispose of
 the Ship or any share or interest in it. 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.3

 	
  

 	
 Manager 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A
 manager of the Ship shall not be appointed unless that manager and the terms
 of its appointment are approved (such approval not to be unreasonably
 withheld) and it has delivered a duly executed Manager’s Undertaking to the
 Security Agent. Once approved, no material variations may be agreed to the
 terms of appointment of the manager without approval (and, for the avoidance
 of doubt, any assignment or novation of the terms of appointment without
 approval shall constitute a material variation). 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.4

 	
  

 	
 Copy of Mortgage on board 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A
 properly certified copy of the Ship’s Mortgage shall be kept on board the
 Ship with its papers and shown to anyone having business with the Ship which
 might create or imply any commitment or Security Interest over or in respect
 of the Ship (other than a lien for crew’s wages and salvage) and to any
 representative of the Agent or the Security Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.5

 	
  

 	
 Notice of Mortgage 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A framed
 printed notice of the relevant Mortgage shall be prominently displayed in the
 navigation room and in the Master’s cabin of the Ship. The notice must be in
 plain type and read as follows: 

 
	
  

 	
  

 	
  

 	
  

 
	
 “NOTICE OF MORTGAGE

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This
Ship is subject to a first mortgage in favour of [here insert name of
mortgagee] of [here insert address of mortgagee]. Under the said mortgage and
related documents, neither the Owner nor any charterer nor the Master of this
Ship has any right, power or authority to create, incur or permit to be
imposed upon this Ship any commitments or encumbrances whatsoever other than
for crew’s wages and salvage”.  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No-one
 will have any right, power or authority to create, incur or permit to be
 imposed upon the Ship any lien whatsoever other than for crew’s wages and
 salvage. 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.6

 	
  

 	
 Conveyance on default 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where
 the Ship is (or is to be) sold in exercise of any power conferred by the
 Security Documents, the relevant Owner shall, upon the Agent’s request,
 immediately execute such form of transfer of title to the Ship as the Agent
 may require. 

 

52

	
  

 	
  

 	
  

 	
  

 
	
 20.7

 	
  

 	
 Chartering 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval, the relevant
 Owner shall not enter into any charter commitment for the Ship (except for
 the Ship’s Charter or Replacement Charter), which is: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 a
 bareboat or demise charter or passes possession and operational control of
 the Ship to another person; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 capable
 of lasting more than 12 calendar months; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 on terms
 as to payment or amount of hire which are materially less beneficial to it
 than the terms which at that time could reasonably be expected to be obtained
 on the open market for vessels of the same age and type as the Ship under
 charter commitments of a similar type and period; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 to an
 Affiliate. 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.8

 	
  

 	
 Sharing of Earnings 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval, the relevant Owner shall not enter into any arrangement under
 which its Earnings from the Ship may be shared with anyone else. 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.9

 	
  

 	
 Payment of Earnings 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 relevant Owner’s Earnings from the Ship shall be paid in the way required by
 the Ship’s Deed of Covenant and the Ship’s Charter Assignment. If any
 Earnings are held by brokers or other agents, they shall be paid to the
 Security Agent, if it requires this after the Earnings have become payable to
 it under the Ship’s Deed of Covenant and the Ship’s Charter Assignment. 

 
	
  

 	
  

 	
  

 	
  

 
	
 20.10

 	
  

 	
 Variations 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 Building Contract shall not be varied and the specification of the Ship shall
 not be materially varied (and, for the avoidance of doubt, variations
 requiring approval shall include, but shall not be limited to, any assignment
 or novation of the Building Contract, any variation which might reasonably be
 expected to delay the delivery of the Ship beyond the Last Availability Date
 or put at risk the delivery of the Ship to the Charterer or any variation to
 alter the circumstances in which the Building Contract may be cancelled,
 terminated or suspended); and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 specification of the Ship will not be changed in a substantial way (and for
 the avoidance of doubt, substantial changes requiring approval shall include,
 but shall not be limited to, any variation which alters the intended type,
 commercial use, purpose or trading capacity of the Ship or materially reduces
 the Ship’s anticipated value when completed or impairs the intended use under
 the Charter or, as the case may be, the Replacement Charter). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For this
 purpose, ordering any extras, additions or alterations will be a substantial
 change and a material variation if their cost (or if the aggregate cost of
 the proposed work together with the cost of any additional work already
 ordered or change of specification already agreed) will alter the Contract
 Price by a cumulative amount greater than 5% of the Delivery Price. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21

 	
  

 	
 Condition and
 operation of Ship 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Borrower undertakes that this clause 21 will be complied with in relation to
 each Ship throughout the relevant Ship’s Mortgage Period. 

 

53

	
  

 	
  

 	
  

 
	
 21.1

 	
  

 	
 Repair 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 shall be kept in a good, safe and efficient state of repair. The quality of
 workmanship and materials used to repair the Ship or replace any damaged,
 worn or lost parts or equipment shall be sufficient to ensure that the Ship’s
 value is not reduced. 

 
	
  

 	
  

 	
  

 
	
 21.2

 	
  

 	
 Modification 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval, the structure, type or performance characteristics of the Ship
 shall not be modified in a way which could or might materially alter the Ship
 or materially reduce its value. 

 
	
  

 	
  

 	
  

 
	
 21.3

 	
  

 	
 Removal of parts 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval, no material part of the Ship or any equipment shall be removed
 from the Ship if to do so would materially reduce its value (unless at the
 same time it is replaced with equivalent parts or equipment owned by the
 relevant Owner free of any Security Interest except under the Security
 Documents). 

 
	
  

 	
  

 	
  

 
	
 21.4

 	
  

 	
 Third party owned equipment 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval, equipment owned by a third party shall not be installed on the
 Ship, unless it can be removed without risk of causing damage to the
 structure or fabric of the Ship or without incurring significant expense. 

 
	
  

 	
  

 	
  

 
	
 21.5

 	
  

 	
 Maintenance of class; compliance with laws 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Ship’s class shall be the relevant Classification with the relevant
 Classification Society and neither its Classification nor its Classification
 Society shall be changed without approval and there must be no material
 overdue recommendations. The Ship and every person who owns, operates or
 manages the Ship shall comply with all laws applicable to vessels registered
 in its Flag State or which for any other reason apply to the Ship or to its
 condition or operation. 

 
	
  

 	
  

 	
  

 
	
 21.6

 	
  

 	
 Surveys 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 shall be submitted to continuous surveys and any other surveys which are
 required for it to maintain its Classification as its class. Copies of
 reports of those surveys shall be provided promptly to the Agent if it so
 requests. 

 
	
  

 	
  

 	
  

 
	
 21.7

 	
  

 	
 Inspection and notice of drydockings 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent and/or surveyors or other persons appointed by it for such purpose
 shall be allowed to board the Ship at all reasonable times, subject to prior
 notice to relevant Owner and without hindering the Ship’s operations or its
 employment, to inspect it and given all proper facilities needed for that
 purpose. The Agent shall be given reasonable advance notice of any intended
 drydocking of the Ship (whatever the purpose of that drydocking). The
 relevant Owner shall bear and reimburse to the Agent, where incurred by the
 Agent, all costs and expenses of any such inspection. 

 
	
  

 	
  

 	
  

 
	
 21.8

 	
  

 	
 Prevention of arrest 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All
 debts, damages, liabilities and outgoings (due and payable and not contested
 by relevant Owner in good faith) which have given, or may reasonably give, rise
 to maritime, statutory or possessory liens on, or claims enforceable against,
 the Ship, its Earnings or Insurances shall be promptly paid and discharged. 

 
	
  

 	
  

 	
  

 
	
 21.9

 	
  

 	
 Release from arrest 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 relevant Owner shall use its reasonable endeavours that the Ship, its
 Earnings and Insurances shall promptly within 15 days (or such longer period
 as may be approved) be released from any arrest, detention, attachment or
 levy, and that any legal process against the 

 

54

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Ship
 shall be promptly within 15 days (or such longer period as may be approved)
 discharged, by whatever action is required to achieve that release or
 discharge. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.10

 	
  

 	
 Information about Ship 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent shall promptly be given any information which it may reasonably require
 about the Ship or its employment, position, use or operation, including
 details of towages and salvages, and copies of all its charter commitments
 entered into by or on behalf of any Borrower, GasLog or any Manager, provided
 that any information so requested and supplied which pertains to the relevant
 Charter or the relevant Replacement Charter shall be held by the Agent and
 the other Finance Parties on a confidential basis. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.11

 	
  

 	
 Notification of certain events 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent shall promptly be notified of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any
 damage to the Ship where the cost of the resulting repairs may exceed the
 Major Casualty Amount for such Ship; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any
 occurrence which may result in the Ship becoming a Total Loss; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any
 requisition of the Ship for hire; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any
 Environmental Incident involving the Ship and Environmental Claim being made
 in relation to such an incident; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 any
 requirement or recommendation made in relation to the Ship by any insurer or
 the Ship’s Classification Society or by any competent authority which is not,
 or cannot be, complied with in the manner or time required or recommended;
 and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 any
 arrest or detention of the Ship or any exercise or purported exercise of a
 lien or other claim on the Ship or its Earnings or Insurances. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.12

 	
  

 	
 Payment of outgoings 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All
 tolls, dues and other outgoings whatsoever in respect of the Ship and its
 Earnings and Insurances shall be paid promptly. Proper accounting records
 shall be kept of the Ship and its Earnings. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.13

 	
  

 	
 Evidence of payments 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent shall be allowed proper and reasonable access, subject to prior written
 notice and provided that the operations of the relevant Owner are not in any
 way hindered, to those accounting records when it reasonably requests it and,
 when it reasonably requires it, shall be given satisfactory evidence that: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 wages and allotments and the insurance and pension contributions of the
 Ship’s crew are being promptly and regularly paid; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 all
 deductions from its crew’s wages in respect of any applicable Tax liability
 are being properly accounted for; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the
 Ship’s master has no claim for disbursements other than those incurred by him
 in the ordinary course of trading on the voyage then in progress. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.14

 	
  

 	
 Repairers’ liens 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except
 with approval, the Ship shall not be put into any other person’s possession
 for work to be done on the Ship if the cost of that work will exceed or is
 likely to exceed the Major Casualty 

 

55

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Amount
 for such Ship unless the relevant Owner has established to the reasonable
 satisfaction of the Agent that it has sufficient reserves to pay for the cost
 of such work. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.15

 	
  

 	
 Codes 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 and the persons responsible for its operation shall at all times comply with
 the requirements of any applicable code or prescribed procedures required to
 be observed by the Ship or in relation to its operation under any applicable
 law or regulation (including but not limited to those currently known as the
 ISM Code and the ISPS Code). The Agent shall promptly be informed of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any
 threatened or actual withdrawal of any certificate issued in accordance with
 any such code which is or may be applicable to the Ship or its operation; and
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 issue of any such certificate or the receipt of notification that any
 application for such a certificate has been refused. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.16

 	
  

 	
 Survey report 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 As soon
 as reasonably practicable after the Agent requests it, the Agent shall be
 given a report on the seaworthiness and/or safe operation of the Ship, from
 approved surveyors or inspectors. If any recommendations are made in such a
 report they shall be complied with in the way and by the time recommended in
 the report. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.17

 	
  

 	
 Lawful use 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 shall not be employed: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in any
 way or in any activity which is unlawful under international law or the
 domestic laws of any relevant country; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 in
 carrying illicit or prohibited goods; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in a way
 which may make it liable to be condemned by a prize court or destroyed,
 seized or confiscated; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 if there
 are hostilities in any part of the world (whether war has been declared or
 not), in carrying contraband goods 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and the
 persons responsible for the operation of the Ship shall take all necessary
 and proper precautions to ensure that this does not happen including
 participation in industry or other voluntary schemes available to the Ship
 and in which leading operators of ships operating under the same flag or
 engaged in similar trades generally participate at the relevant time. 

 
	
  

 	
  

 	
  

 	
  

 
	
 21.18

 	
  

 	
 War zones 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 may enter or remain in any zone which has been declared a war zone by any
 government entity or the Ship’s war risk insurers, subject to any
 requirements of the Ship’s insurers necessary to ensure that the Ship remains
 properly insured and complies with any requirements (including any
 requirement for the payment of extra insurance premiums) which the insurers
 specify. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22

 	
  

 	
 Insurance 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Borrower undertakes that this clause 22 shall be complied with in relation to
 each Ship and its Insurances throughout the Mortgage Period. 

 

56

	
  

 	
  

 	
  

 	
  

 
	
 22.1

 	
  

 	
 Insurance terms 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this
 clause 22: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “excess risks” means the proportion (if
 any) of claims for general average, salvage and salvage charges not
 recoverable under the hull and machinery insurances of a vessel in
 consequence of the value at which the vessel is assessed for the purpose of
 such claims exceeding its insured value. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “excess war risk P&I cover” means
 cover for claims only in excess of amounts recoverable under the usual war
 risk cover including (but not limited to) hull and machinery, crew and
 protection and indemnity risks. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “hull cover” means insurance cover against
 the risks identified in clause 22.2(a). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “minimum hull cover” means, in relation to
 a Ship, an amount, which when aggregated with the insured amounts of each of
 the other Ships that have been delivered, is equal at the relevant time to
 the higher of (a) the aggregate Security Value of the Ships as most recently
 determined in accordance with clause 23 (Minimum
 Security Value) and (b) 120% of the aggregate of the Loan and the
 Hedging Exposure at such time. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “P&I risks” means the usual risks
 (including liability for oil pollution, excess war risk P&I cover)
 covered by a protection and indemnity association which is a member of the
 International Group of protection and indemnity associations (or, if the
 International Group ceases to exist, any other leading protection and
 indemnity association or other leading provider of protection and indemnity
 insurance) (including, without limitation, the proportion (if any) of any collision
 liability not covered under the terms of the hull cover). 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.2

 	
  

 	
 Coverage required 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 shall at all times be insured: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 against
 fire and usual marine risks (including excess risks) and war risks (including
 war protection and indemnity risks and terrorism risks) on an agreed value
 basis, for at least its minimum hull cover and no less than 80% of the agreed
 insurable value; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 against
 P&I risks for the highest amount then available in the insurance market
 for vessels of similar age, size and type as the Ship (but, in relation to
 liability for oil pollution, for an amount of not less than $1,000,000,000)
 and a freight, demurrage and defence cover; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 against
 such other risks and matters which the Agent (acting on the instructions of
 all the Lenders) notifies it that it considers reasonable for a prudent
 shipowner or operator to insure against at the time of that notice; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 on terms
 which comply with the other provisions of this clause 22. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.3

 	
  

 	
 Placing of cover 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 insurance coverage required by clause 22.2 (Coverage
 required) shall be: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in the
 name of the Ship’s Owner and (in the case of the Ship’s hull cover) no other
 person (other than the Security Agent if required by it) (unless such other
 person is approved and, if so required by the Agent, has duly executed and
 delivered a first priority assignment of its interest in the Ship’s
 Insurances to the Security Agent in an approved form and provided such
 supporting documents and opinions in relation to that assignment as the Agent
 requires); 

 

57

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 if the
 Agent so requests, in the joint names of the Ship’s Owner and Security Agent
 (and, to the extent reasonably practicable in the insurance market, without liability
 on the part of the Security Agent for premiums or calls); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in
 dollars or another approved currency; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 arranged
 through approved brokers or direct with approved insurers or protection and
 indemnity or war risks associations; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 on
 approved terms and with approved insurers or associations. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.4

 	
  

 	
 Deductibles 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 aggregate amount of any excess or deductible under the Ship’s hull cover
 shall not exceed $1,000,000 without the Agent’s approval. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.5

 	
  

 	
 Mortgagee’s insurance 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 The
 Borrower shall promptly reimburse to the Agent the cost (as conclusively
 certified by the Agent) of taking out and keeping in force in respect of the
 Ship and the other Ships on approved terms, or in considering or making
 claims under a mortgagee’s interest insurance and a mortgagee’s additional
 perils (all P&I risks) cover for the benefit of the Finance Parties for
 an amount of 120% of the Loan; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any
 other insurance cover which the Agent reasonably requires in respect of any
 Finance Party’s interests and potential liabilities (but not with respect to
 loss of hire of the Ship) (whether as mortgagee of the Ship or beneficiary of
 the Security Documents). 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.6

 	
  

 	
 Fleet liens, set off and cancellations 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the
 Ship’s hull cover also insures other vessels, the Security Agent shall either
 be given an undertaking in approved terms by the brokers or (if such cover is
 not placed through brokers or the brokers do not, under any applicable laws
 or insurance terms, have such rights of set off and cancellation) the
 relevant insurers that the brokers or (if relevant) the insurers will not: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 set off
 against any claims in respect of the Ship any premiums due in respect of any
 of such other vessels insured (other than the other Borrowers’ Ships); or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 cancel
 that cover because of non-payment of premiums in respect of such other
 vessels, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or the
 Borrower shall ensure that hull cover for the Ship and any other Ship is
 provided under a separate policy from any other vessels. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.7

 	
  

 	
 Payment of premiums 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All
 premiums, calls, contributions or other sums payable in respect of the
 Insurances shall be paid punctually and the Agent shall be provided with all
 relevant receipts or other evidence of payment upon request. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.8

 	
  

 	
 Details of proposed renewal of Insurances 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 At least
 14 days before any of the Ship’s Insurances are due to expire, the Agent
 shall be told the names of the brokers, insurers and associations proposed to
 be used for the renewal of such Insurances and the amounts, risks and terms
 in, against and on which the Ship’s Insurances are proposed to be renewed. 

 

58

	
  

 	
  

 	
  

 	
  

 
	
 22.9

 	
  

 	
 Instructions for renewal 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 At least
 seven days before any of the Ship’s Insurances are due to expire,
 instructions shall be given to brokers, insurers and associations for them to
 be renewed or replaced on or before their expiry. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.10

 	
  

 	
 Confirmation of renewal 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Ship’s Insurances shall be renewed upon their expiry in a manner and on terms
 which comply with this clause 22 and confirmation of such renewal given by
 approved brokers or insurers to the Agent at least seven days (or such
 shorter period as may be approved) before such expiry. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.11

 	
  

 	
 P&I guarantees 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any
 guarantee or undertaking required by any protection and indemnity or war
 risks association in relation to the Ship shall be provided when required by
 the association. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.12

 	
  

 	
 Insurance documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent shall be provided with pro forma copies of all insurance policies and
 other documentation issued by brokers, insurers and associations in
 connection with the Ship’s Insurances as soon as they are available after
 they have been placed or renewed and all insurance policies and other
 documents relating to the Ship’s Insurances shall be deposited with any
 approved brokers or (if not deposited with approved brokers) the Agent or
 some other approved person. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.13

 	
  

 	
 Letters of undertaking 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Unless
 otherwise approved where the Agent is satisfied that equivalent protection is
 afforded by the terms of the relevant Insurances and/or any applicable law
 and/or a letter of undertaking provided by another person, on each placing or
 renewal of the Insurances, the Agent shall be provided promptly with letters
 of undertaking in an approved form (having regard to general insurance market
 practice and law at the time of issue of such letter of undertaking) from the
 relevant brokers, insurers and associations. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.14

 	
  

 	
 Insurance Notices and Loss Payable Clauses 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 interest of the Security Agent as assignee of the Insurances shall be
 endorsed on all insurance policies and other documents by the incorporation
 of a Loss Payable Clause and an Insurance Notice in respect of the Ship and
 its Insurances signed by its Owner and, unless otherwise approved, each other
 person assured under the relevant cover (other than the Security Agent if it
 is itself an assured). 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.15

 	
  

 	
 Insurance correspondence 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If so
 required by the Agent, the Agent shall promptly be provided with copies of
 all written communications between the assureds and brokers, insurers and
 associations relating to any of the Ship’s Insurances as soon as they are
 available. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.16

 	
  

 	
 Qualifications and exclusions 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All
 requirements applicable to the Ship’s Insurances shall be complied with and
 the Ship’s Insurances shall only be subject to approved exclusions or
 qualifications. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.17

 	
  

 	
 Independent report 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the
 Agent asks the Borrowers for a detailed report from an approved independent
 firm of marine insurance brokers giving their opinion on the adequacy of the
 Ship’s Insurances then the Agent shall be provided promptly with such a
 report at no cost to the Agent or (if the Agent 

 

59

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 obtains
 such a report itself) the Borrowers shall reimburse the Agent for the cost of
 obtaining that report. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.18

 	
  

 	
 Collection of claims 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All
 documents and other information and all assistance required by the Agent to
 assist it and/or the Security Agent in trying to collect or recover any
 claims under the Ship’s Insurances shall be provided promptly. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.19

 	
  

 	
 Employment of Ship 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship
 shall only be employed or operated in conformity with the terms of the Ship’s
 Insurances (including any express or implied warranties) and not in any other
 way, unless the insurers have consented and any additional requirements of
 the insurers have been satisfied. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.20

 	
  

 	
 Declarations and returns 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If any
 of the Ship’s Insurances are on terms that require a declaration, certificate
 or other document to be made or filed before the Ship sails to, or operates
 within, an area, those terms shall be complied with within the time and in
 the manner required by those Insurances. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.21

 	
  

 	
 Application of recoveries 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All sums
 paid under the Ship’s Insurances to anyone other than the Security Agent
 shall be applied in repairing the damage and/or in discharging the liability
 in respect of which they have been paid except to the extent that the repairs
 have already been paid for and/or the liability already discharged. 

 
	
  

 	
  

 	
  

 	
  

 
	
 22.22

 	
  

 	
 Settlement of claims 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any
 claim under the Ship’s Insurances for a Total Loss or Major Casualty shall
 only be settled, compromised or abandoned with prior approval. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23

 	
  

 	
 Minimum security
 value 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Borrower undertakes that this clause 23 will be
complied with throughout the Facility Period.  

 
	
  

 	
  

 	
  

 	
  

 
	
 23.1

 	
  

 	
 Valuation of assets 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For the
 purpose of the Finance Documents, the value at any time of any Ship or any
 other asset over which additional security is provided under this clause 23
 will be its value as most recently determined in accordance with this clause
 23. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.2

 	
  

 	
 Valuation frequency 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Valuations
 of each Ship and each such other asset shall be addressed to the Agent (and
 for the benefit of the other Finance Parties) and in accordance with this
 clause 23 shall be obtained by the Agent on or prior to making available the
 Advance for that Ship, and thereafter at any time. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.3

 	
  

 	
 Expenses of valuation 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall bear, and reimburse to the Agent where incurred by the Agent,
 all costs and expenses of providing one valuation per annum unless and until
 a Default which is continuing shall occur, whereupon all costs and expenses
 of all valuations shall be payable by the relevant Owner. 

 

60

	
  

 	
  

 	
  

 	
  

 
	
 23.4

 	
  

 	
 Valuations procedure 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 value of any Ship shall be determined in accordance with, and by valuers
 approved and appointed in accordance with, this clause 23. Additional
 security provided under this clause 23 shall be valued in such a way, on such
 a basis and by such persons (including the Agent itself) as may be approved. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.5

 	
  

 	
 Currency of valuation 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Valuations
 shall be provided by valuers in dollars or, if a valuer is of the view that
 the relevant type of vessel is generally bought and sold in another currency,
 in that other currency. If a valuation is provided in another currency, for
 the purposes of this Agreement it shall be converted into dollars at the
 Agent’s spot rate of exchange for the purchase of dollars with that other
 currency as at the date to which the valuation relates. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.6

 	
  

 	
 Basis of valuation 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 valuation will be made: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 without
 physical inspection (unless required by the Agent); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 on the
 basis of a sale for prompt delivery for a price payable in full in cash on
 delivery at arm’s length on normal commercial terms between a willing buyer
 and a willing seller; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 without
 taking into account the benefit (but taking into account the burden) of any
 charter commitment. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.7

 	
  

 	
 Information required for valuation 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Borrowers shall promptly provide to the Agent and any such valuer any
 information which they reasonably require for the purposes of providing such
 a valuation. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.8

 	
  

 	
 Approval of valuers 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All
 valuers must have been approved (the approved valuers as at the date of this
 Agreement are E. A. Gibson Shipbrokers Limited, Lorentzen & Stemoco A.S.,
 Barry Rogliano Salles & Cie, Clarkson plc, Poten & Partners Inc.,
 Fearnleys AS, Simpson, Spence & Young Limited and Braemar Seascope
 Limited). The Agent may from time to time notify the Borrowers of approval of
 one or more independent ship brokers as valuers for the purposes of this
 clause 23. The Agent shall respond promptly to any request by the Borrowers
 for approval of a broker nominated by the Borrowers. The Agent may at any
 time by notice to the Borrowers withdraw any previous approval of a valuer
 for the purposes of future valuations. That valuer may not then be appointed
 to provide valuations unless it is once more approved. If the Agent has not
 approved at least three brokers as valuers at a time when a valuation is
 required under this clause 23, the Agent shall promptly notify the Borrowers
 of the names of at least three valuers which are approved. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.9

 	
  

 	
 Appointment of valuers 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 When a
 valuation is required for the purposes of this clause 23, the Agent or, if so
 approved at that time, the Borrowers shall promptly appoint approved valuers
 to provide such a valuation. If the Borrowers are approved to appoint valuers
 but fail to do so promptly, the Agent may appoint approved valuers to provide
 that valuation. 

 
	
  

 	
  

 	
  

 	
  

 
	
 23.10

 	
  

 	
 Number of valuers 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 valuation shall be carried out by two approved valuers of whom one shall be
 nominated by the Agent and the other by the Borrowers. If the Borrowers fail
 promptly to nominate a second valuer then the Agent may nominate the second
 valuer. 

 

61

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.11

 	
  

 	
 Differences in valuations 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If valuations provided by individual valuers differ, the value of the
 relevant Ship for the purposes of the Finance Documents will be the mean
 average of those valuations. If valuations provided by individual valuers
 appointed by the Borrowers and the Agent differ by 15% or more a third
 approved valuer shall be appointed by the Agent and the value of the Ship
 will be the mean average of those three valuations. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.12

 	
  

 	
 Security shortfall 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If at any time the Security Value is less than the Minimum Value, the
 Agent may, and shall, if so directed by the Lenders, by notice to the
 Borrowers require such deficiency be remedied. The Borrowers shall then
 within 14 Business Days of receipt of such notice ensure that the Security
 Value equals or exceeds the Minimum Value. For this purpose, the Borrowers
 may: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 provide additional security over other approved assets by the Lenders
 in accordance with this clause 23; and/or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 cancel part of the Total Commitments under clause 7.2 (Voluntary cancellation) but on five
 Business Days’ notice instead of the period required by such clause; and/or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 prepay part of the Loan under clause 7.3 (Voluntary prepayment) but on five Business Days’ notice
 instead of the period required by such clause. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.13

 	
  

 	
 Creation of additional security 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The value of any additional security which the Borrowers offer to
 provide to remedy all or part of a shortfall in the amount of the Security
 Value will only be taken into account for the purposes of determining the
 Security Value if and when: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 that additional security, its value and the method of its valuation
 have been approved by the Lenders; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a Security Interest over that security has been constituted in favour
 of the Security Agent in an approved form and manner; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 this Agreement has been unconditionally amended in such manner as the
 Agent requires in consequence of that additional security being provided; and
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Agent, or its duly authorised representative, has received such
 documents and evidence it may require in relation to that additional security
 including documents and evidence of the type referred to in Schedule 3 in
 relation to that additional security and its execution and (if applicable)
 registration. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.14

 	
  

 	
 Security release 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Security Value shall at any time exceed the Minimum Value, and
 the Borrowers shall previously have provided further security to the Security
 Agent pursuant to clause 23.12 (Security
 Shortfall), the Security Agent shall, as soon as reasonably
 practicable after notice from the Borrowers to do so and subject to being
 indemnified to its satisfaction against the cost of doing so, release any
 such further security specified by the Borrowers provided that the Agent is
 satisfied that, immediately following such release, the Security Value will
 equal or exceed the Minimum Value and no other Event of Default shall have
 occurred and be continuing. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24

 	
  

 	
 Chartering
 undertakings 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Borrower undertakes that this clause 24 will be complied with in
 relation to each Ship and its Charter Documents throughout the relevant
 Ship’s Mortgage Period. 

 

62

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.1

 	
  

 	
 Charter Documents 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The relevant Owner shall enter into the relevant Charter Documents
 for the relevant Ship at least 60 days prior to the Scheduled delivery date
 (as set out in Schedule 2 (Ship
 Information), in the case of a Charter, at the Charter Rates (as
 set out in Schedule 2 (Ship Information))
 and in the case of a Replacement Charter, at the approved charter rates as
 set out in such Replacement Charter, and in an approved form and shall
 provide a copy of the relevant Charter Documents certified to be a true copy
 of the original. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.2

 	
  

 	
 Charter assignment etc 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Following receipt of the relevant Charter Documents pursuant to
 clause 24.1 (Charter Documents),
 no later than 30 days prior to the Scheduled delivery date (as set out in
 Schedule 2 (Ship Information))
 of the relevant Ship, the relevant Owner shall: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.2.1

 	
  

 	
 enter into a Charter Assignment in favour of the Security Agent; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.2.2

 	
  

 	
 give notice of assignment of the Charter Documents to the other
 parties to them in the form specified in the Charter Assignment and procure a
 copy of that notice acknowledged by each addressee in the form specified in
 the relevant Ship’s Charter Assignment for the Agent; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.2.3

 	
  

 	
 procure that the relevant Charterer shall execute a Quiet Enjoyment
 Agreement to be entered into between the relevant Charterer and the Security
 Agent. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.3

 	
  

 	
 Variations 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval (not to be unreasonably withheld or delayed),
 the Charter Documents shall not be varied (and, for the avoidance of doubt,
 any assignment or novation of a Charter Document without approval shall
 constitute a variation). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.4

 	
  

 	
 Releases and waivers 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, there shall be no release by the relevant Owner
 of any obligation of any other person under the Charter Documents (including
 by way of novation), no waiver of any breach of any such obligation and no
 consent to anything which would otherwise be such a breach. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.5

 	
  

 	
 Termination by Owner 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the relevant Owner shall not terminate or
 rescind any Charter Document or withdraw the relevant Ship from service under
 its Charter or Replacement Charter or take any similar action. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.6

 	
  

 	
 Charter performance 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The relevant Owner shall perform its obligations under the relevant
 Charter Documents and use its reasonable endeavours to ensure that each other
 party to them performs their obligations under the relevant Charter
 Documents. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.7

 	
  

 	
 Payment of Charter Earnings 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All Earnings which the relevant Owner is entitled to receive under
 the Charter Documents shall be paid in the manner required by the Security
 Documents. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.8

 	
  

 	
 Substitution of Charter by a bareboat
 charter 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If pursuant to the provisions of the relevant Charter, the relevant
 Charterer elects to convert that Charter to a bareboat charter to be made
 between the Charterer and the relevant Owner in relation to that Ship (for
 the purposes of this clause 24.8 the Bareboat
 Charter), then the relevant Owner shall, at its own cost and
 expense: 

 

63

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.8.1

 	
  

 	
 enter into such Bareboat Charter or deliver possession of the
 relevant Ship to the relevant Charterer under such Bareboat Charter only
 after its terms have been approved; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.8.2

 	
  

 	
 assign in favour of the Security Agent all its rights under the
 executed Bareboat Charter, such assignment to be in such form as the Agent
 may in its sole discretion require; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.8.3

 	
  

 	
 execute, or procure the execution by itself, the relevant Charterer
 and/or any other Obligor of, any agreements (supplemental or otherwise),
 documents or instruments that the Agent may require in connection with the
 Bareboat Charter, this Agreement or any of the other Security Documents
 including, without limitation, a tripartite deed of assignment (including an
 assignment of the Charterer’s insurances) in favour of the Security Agent. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25

 	
  

 	
 Bank accounts 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Borrower undertakes that this clause will be complied with
 throughout the Facility Period. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.1

 	
  

 	
 Revenue Account 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.1.1

 	
  

 	
 Each Borrower shall be the holder of one or more Accounts with an
 Account Bank which is designated as a “Revenue
 Account” for the purposes of the Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.1.2

 	
  

 	
 The Earnings of the Ships and
 all moneys payable to the Owner of a Ship under the Ship’s Insurances and any
 net amount payable to the Borrowers under any Hedging Contract shall be paid
 by the persons from whom they are due to the relevant Revenue Account for
 that Borrower unless required to be paid to the Security Agent under the
 relevant Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.1.3

 	
  

 	
 No Borrower shall withdraw amounts standing to the credit of a
 Revenue Account except as permitted by clause 25.1.4. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.1.4

 	
  

 	
 If there is no Event of Default which is continuing and subject to
 the further condition set out at the end of this clause 25.1.4, the relevant
 Account Holder(s) may withdraw the following amounts from a Revenue Account
 in the following order of priority during each monthly period in an approved
 manner: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 payments of the proper costs and expenses of insuring, drydocking,
 repairing, operating and maintaining the Ship (provided that such costs and
 expenses shall not exceed the Hire Rate (Opex) (as defined in the relevant
 Charter) in respect of such monthly period; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 payments then due to Finance Parties under the Finance Documents
 (other than payments due in respect of a prepayment) or payments under
 Hedging Contracts attributable to the partial unwinding of any Hedging
 Contracts pursuant to clause 27.2 (Unwinding
 of Hedging Contracts) and any payments into the Reserve Account as
 and when they may be required under this Agreement; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 payments then due under Hedging Contracts or other Treasury
 Transactions entered into to protect against fluctuations in the rate of
 interest payable under the relevant Finance Documents; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 payments to a Retention Account required to comply with clause 25.2 (Retention Account); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 payments to another Revenue Account; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 payments to a Reserve Account; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 any payments by the Borrowers which are not prohibited under, and
 always subject to, the terms of this Agreement or other Security Documents, 

 

64

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 PROVIDED ALWAYS THAT the Account Holder(s) shall ensure that, in
 respect of each Ship, there is at all times after the relevant Delivery Date,
 a minimum of $1,500,000 maintained in each of the relevant Revenue Accounts
 relating to such Ships. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.2

 	
  

 	
 Retention Account 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.2.1

 	
  

 	
 The Borrowers shall jointly be the holders of an Account denominated
in dollars with an Account Bank which is designated as the “Retention
Account” for the purposes of the Finance Documents by the Borrowers and the
Lenders.  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.2.2

 	
  

 	
 There shall be paid into the Retention Account such amounts as will
ensure that, on each date (a retention date) falling 10 days after the date
(start date) three months before the First Repayment Date and at monthly
intervals after that, the amount credited to the Retention Account is at least: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the relevant fraction of the net amount of interest payable under
 clause 8 (Interest) during or
 at the end of the Interest Period current on that retention date; plus 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the relevant fraction of the instalment of the Loan due to be repaid
 under clause 6.1 (Repayment) on
 the next Repayment Date after that retention date. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.2.3

 	
  

 	
 The relevant fraction of such an amount of interest or instalment of
 the Loan as at a retention date will be the fraction whose numerator is the
 number of retention dates up to and including the relevant retention date
 from the beginning of that Interest Period (in the case of interest) or since
 the start date or, if later, the previous Repayment Date (in the case of such
 instalment) and whose denominator is the number of retentions dates falling
 during or at the end of the relevant Interest Period or, as the case may be,
 the period beginning on the previous Repayment Date (or the start date in the
 case of retention dates before the First Repayment Date) and ending on the
 relevant Repayment Date. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.2.4

 	
  

 	
 The relevant Account Holder(s) shall not withdraw amounts standing to
 the credit of the Retention Account except as permitted by clause 25.2.5. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.2.5

 	
  

 	
 If there is no continuing Event of Default and if (unless the payment
 is to a new Retention Account), after the withdrawal, the balance on the
 Retention Account will be at least the minimum amount required by clause
 25.2.2 at that time, the relevant Account Holder(s) may withdraw the
 following amounts from the Retention Account: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 payments of interest due under clause 8 (Interest) and repayments of the Loan due under clause 6.1
 (Repayment); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 payment to a Reserve Account of any amount by which the balance on
 the Retention Account exceeds that minimum amount.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.3

 	
  

 	
 Reserve Account 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.3.1

 	
  

 	
 A Borrower or some or all of the Borrowers jointly shall be the
holder of one or more Accounts with an Account Bank which is designated as a
“Reserve Account” for the purposes of the Finance Documents.  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.3.2

 	
  

 	
 Unless and until an Event of Default has occurred which is
 continuing, the relevant Account Holder(s) shall be entitled to withdraw any
 or all amounts standing to the credit of a Reserve Account: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 if approved; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 if the relevant Charter or Replacement Charter is extended for a
 period of not less than 5 years in accordance with clause 6.9 of the time
 charter of that Charter or the relevant clause of that Replacement Charter,
 as the case may be, and subject always to clause 28.22 (Charter termination); or 

 

65

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in or towards
 repayment of the Loan on the Final Repayment Date. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.4

 	
  

 	
 Other
 provisions 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.4.1

 	
  

 	
 An Account may
 only be designated for the purposes described in this clause 25 if: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 such designation
 is made in writing by the Agent and acknowledged by the Borrowers and
 specifies the names and addresses of the Account Bank, the Account Holder(s)
 and the number and any designation or other reference attributed to the
 Account; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 an Account
 Security has been duly executed and delivered by the relevant Account
 Holder(s) in favour of the Security Agent; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any notice
 required by the Account Security to be given to an Account Bank has been
 given to, and acknowledged by, the Account Bank in the form required by the
 relevant Account Security; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Agent, or its
 duly authorised representative, has received such documents and evidence it
 may require in relation to the Account and the Account Security including
 documents and evidence of the type referred to in Schedule 3 in relation to
 the Account and the relevant Account Security. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.4.2

 	
  

 	
 The rates of
 payment of interest and other terms regulating any Account will be a matter
 of separate agreement between the relevant Account Holder(s) and an Account
 Bank. If an Account is a fixed term deposit account, the relevant Account
 Holder(s) may select the terms of deposits until the relevant Account Security
 has become enforceable and the Security Agent directs otherwise. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.4.3

 	
  

 	
 The relevant
 Account Holder(s) shall not close any Account or alter the terms of any
 Account from those in force at the time it is designated for the purposes of
 this clause 25 or waive any of its rights in relation to an Account except
 with approval. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.4.4

 	
  

 	
 The relevant
 Account Holder(s) shall deposit with the Security Agent all certificates of
 deposit, receipts or other instruments or securities relating to any Account,
 notify the Security Agent of any claim or notice relating to an Account from
 any other party and provide the Agent with any other information it may
 request concerning any Account. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 25.4.5

 	
  

 	
 Each of the Agent
 and the Security Agent agrees that if it is an Account Bank in respect of an
 Account then there will be no restrictions on charging that Account as
 contemplated by this Agreement and it shall not (except with the approval of
 the Lenders) exercise any right of combination, consolidation or set-off
 which it may have in respect of that Account in a manner adverse to the
 rights of the other Finance Parties. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26

 	
  

 	
 Business restrictions 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as
 otherwise approved, each Borrower undertakes that this clause 26 will be
 complied with by and in respect of each Obligor and their Affiliates (to the
 extent applicable) throughout the Facility Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.1

 	
  

 	
 General
 negative pledge 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not permit any Security Interest to exist, arise or be created or extended over
 all or any part of its assets except for Permitted Security Interests,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.2

 	
  

 	
 Transactions
 similar to security 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (Without prejudice
 to clauses 26.3 (Financial Indebtedness) and 26.6 (Disposals)), the Borrower shall not: 

 

66

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 sell, transfer or otherwise dispose of any of its assets on terms
 whereby that asset is or may be leased to, or re-acquired by, any Affiliate
 other than pursuant to disposals permitted under clause 26.6 (Disposals); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 sell, transfer, factor or otherwise dispose of any of its
 receivables; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 enter into any arrangement under which money or the benefit of a bank
 or other account may be applied, set-off or made subject to a combination of
 accounts; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 enter into any other preferential arrangement having a similar
 effect. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.3

 	
  

 	
 Financial Indebtedness 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not incur or permit to exist, any Financial
 Indebtedness owed by it to anyone else except: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Financial Indebtedness incurred under the Finance Documents and
 Hedging Contracts for Hedging Transactions entered into pursuant to clause
 27.1 (Hedging); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 Financial Indebtedness owed to another Obligor which is subordinated
 in an approved manner; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Financial Indebtedness permitted under clause 26.4 (Guarantees). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.4

 	
  

 	
 Guarantees 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not give or permit to exist, any guarantee by it
 in respect of indebtedness of any person or allow any of its indebtedness to
 be guaranteed by anyone else except: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 guarantees of obligations of Affiliates that are not Financial
 Indebtedness or obligations prohibited by any Finance Document; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 guarantees in favour of trade creditors of any Borrower given in the
 ordinary course of its business or in order to avoid the creation of, or to
 release, a Permitted Maritime Lien; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 guarantees which are Financial Indebtedness permitted under clause
 26.3 (Financial Indebtedness). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.5

 	
  

 	
 Bank accounts and other financial
 transactions 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 maintain any bank accounts with a bank or financial institution
 except for the Accounts; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 hold cash in any account (other than in an Account); and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 be party to any banking or financial transaction, whether on or off
 balance sheet, that is not expressly permitted under this clause 26 (Business restrictions). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.6

 	
  

 	
 Disposals 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not enter into a single transaction or a series of
 transactions, whether related or not and whether voluntarily or
 involuntarily, to dispose of any asset except for any of the following
 disposals so long as they are not prohibited by any other provision of the
 Finance Documents: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 disposals of assets made in (and on terms reflecting) the ordinary
 course of trading of the disposing entity; 

 

67

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 disposals of obsolete assets, or assets which are no longer required
 for the purpose of the business of any Borrower, in each case for cash on
 normal commercial terms and on an arm’s length basis; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the application of cash or cash equivalents in the acquisition of
 assets or services in the ordinary course of its business. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.7

 	
  

 	
 Contracts and arrangements with Affiliates 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor shall be a party to any arrangement or contract with any
 of its Affiliates unless such arrangement or contract is on an arm’s length
 basis. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.8

 	
  

 	
 Subsidiaries 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not establish or acquire a company or other entity.
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.9

 	
  

 	
 Acquisitions and investments 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not, without approval, acquire any person,
 business, assets or liabilities or make any investment in any person or
 business or enter into any joint-venture arrangement except: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 acquisitions of assets in the ordinary course of business (not being
 new businesses or vessels); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the incurrence of liabilities in the ordinary course of its business;
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any loan or credit not otherwise prohibited under this Agreement; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 pursuant to any Finance Documents or Charter Documents to which it is
 party. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.10

 	
  

 	
 Reduction of capital 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not redeem or purchase or otherwise reduce any of
 its equity or any other share capital or any warrants or any uncalled or
 unpaid liability in respect of any of them or reduce the amount (if any) for
 the time being standing to the credit of its share premium account or capital
 redemption or other undistributable reserve in any manner unless as permitted
 pursuant to clause 26.11 (Distributions
 and other payments). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.11

 	
  

 	
 Distributions and other payments 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 declare or pay (including by way of set-off, combination of accounts
 or otherwise) any dividend or redeem or make any other distribution or
 payment (whether in cash or in specie), including any interest and/or unpaid
 dividends, in respect of its equity or any other share capital or any
 warrants for the time being in issue; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 make any payment (including by way of set-off, combination of
 accounts or otherwise) by way of interest, or repayment, redemption, purchase
 or other payment, in respect of any shareholder loan, loan stock or similar
 instrument; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 except to its Holding Company and no Default is continuing. 

 

68

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27

 	
  

 	
 Hedging Contracts
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1

 	
  

 	
 Hedging 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.1

 	
  

 	
 The Borrowers may enter into and maintain at all times Hedging
 Transactions which provide for protection against adverse movements in interest
 rates for an aggregate notional principal amount that does not exceed the
 Loan as then scheduled to be repaid pursuant to clause 6.2. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.2

 	
  

 	
 The interest rate swaps contemplated by clause 27.1.1 shall
 collectively: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 provide for the Borrowers to pay a fixed or capped rate of interest
 in respect of the relevant notional principal amount; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 match the repayment profile of the Loan. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.3

 	
  

 	
 The Borrowers shall ensure that each due date for value in respect of
 each Hedging Transaction shall coincide with the last day of an Interest
 Period and that interest continues to be paid on the last day of each
 Interest Period. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.4

 	
  

 	
 The Borrowers shall, promptly upon entry into of any Confirmation
 under a Hedging Contract, deliver to the Agent an original or certified copy
 of such Confirmation. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.5

 	
  

 	
 Other than Hedging Transactions which meet the requirements of this
 clause 27.1, the Borrowers shall not enter into Treasury Transactions, except
 with approval. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.6

 	
  

 	
 If, at any time during the Facility Period, the Borrowers wish to
 enter into any Treasury Transaction so as to hedge all or any part of their
 exposure under this Agreement to interest rate fluctuations, it shall advise
 the Agent in writing. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.7

 	
  

 	
 Any such Treasury Transaction shall be concluded with a Hedging
 Provider on the terms of the Hedging Master Agreement with that Hedging
 Provider but (except with the approval of the Majority Lenders) no such
 Treasury Transaction shall be concluded unless: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 its purpose is to hedge the Borrowers’ interest rate risk in relation
 to borrowings under this Agreement for a period expiring no later than the
 Final Repayment Date; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 its notional principal amount, when aggregated with the notional
 principal amount of any other continuing Hedging Contracts, does not and will
 not exceed the Loan as then scheduled to be repaid pursuant to clause 6.2;
 and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 it is approved. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.1.8

 	
  

 	
 If and when any such Treasury Transaction has been concluded, it
 shall constitute a Hedging Contract for the purposes of the Finance
 Documents. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.2

 	
  

 	
 Unwinding of Hedging Contracts 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If, at any time, and whether as a result of any prepayment (in whole
 or in part) of the Loan or any cancellation (in whole or in part) of any
 Commitment or otherwise, the aggregate notional principal amount under all
 Hedging Transactions in respect of the Loan entered into by the Borrowers
 exceeds or will exceed the amount of the Loan after such prepayment or
 cancellation, then (unless otherwise approved by the Majority Lenders) the
 Borrowers shall immediately close out and terminate sufficient Hedging
 Transactions as are necessary to ensure that the aggregate notional principal
 amount under the remaining continuing Hedging Transactions is not greater
 than and will in the future not be greater than, the amount of the Loan at
 that time and as scheduled to be repaid from time to time thereafter pursuant
 to clause 6.2.

 

69

	
  

 	
  

 	
  

 
	
 27.3

 	
  

 	
 Assignment of Hedging Contracts by
 Borrowers 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval or pursuant to the Hedging Contract Security,
 the Borrowers shall not assign or otherwise dispose of, or create Security
 Interests over or in relation to, its rights under any Hedging Contract. 

 
	
  

 	
  

 	
  

 
	
 27.4

 	
  

 	
 Termination of Hedging Contracts by
 Borrowers 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Following the occurrence of an Event of Default, except with
 approval, the Borrowers shall not terminate or rescind any Hedging Contract
 or close out or unwind any Hedging Transaction for any reason whatsoever
 except in accordance with clause 27.2 (Unwinding
 of Hedging Contracts). 

 
	
  

 	
  

 	
  

 
	
 27.5

 	
  

 	
 Definition of Loan 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For the purposes of this clause 27 only, the definition of Loan shall
 mean: 

 
	
  

 	
  

 	
  

 
	
 27.5.1

 	
  

 	
 prior to first Utilisation, the aggregate principal amount of the
 Ship Commitments for the Ships; 

 
	
  

 	
  

 	
  

 
	
 27.5.2

 	
  

 	
 after first Utilisation but prior to delivery of all the Ships, the
 aggregate principal amount of (a) the Ship Commitments for any Ships not yet
 delivered and (b) the Loan; and 

 
	
  

 	
  

 	
  

 
	
 27.5.3

 	
  

 	
 after final Utilisation, the principal amount of the Loan. 

 
	
  

 	
  

 	
  

 
	
 28

 	
  

 	
 Events of Default
 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of the events or circumstances set out in clauses 28.1 to 28.22
 is an Event of Default. 

 
	
  

 	
  

 	
  

 
	
 28.1

 	
  

 	
 Non-payment 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 An Obligor does not pay on the due date any amount payable pursuant
 to a Finance Document at the place at and in the currency in which it is
 expressed to be payable provided however that no Event of Default shall occur
 if a Disruption Event has occurred and such payment is made within three
 Business Days of the due date. 

 
	
  

 	
  

 	
  

 
	
 28.2

 	
  

 	
 Hedging Contracts

 
	
  

 	
  

 	
  

 
	
 28.2.1

 	
  

 	
 An Event of Default or Potential Event of Default (in each case as
 defined in any Hedging Master Agreement) has occurred and is continuing under
 any Hedging Contract. 

 
	
  

 	
  

 	
  

 
	
 28.2.2

 	
  

 	
 An Early Termination Date (as defined in the Hedging Master
 Agreements) has occurred or been or become capable of being effectively
 designated under any Hedging Contract. 

 
	
  

 	
  

 	
  

 
	
 28.2.3

 	
  

 	
 A person entitled to do so gives notice of such an Early Termination
 Date under any Hedging Contract except with approval or as may be required by
 clause 27.2 (Unwinding of Hedging
 Contracts). 

 
	
  

 	
  

 	
  

 
	
 28.2.4

 	
  

 	
 Following the occurrence of an Event of Default, any Hedging Contract
 is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases
 to remain in full force and effect for any reason except with approval or as
 may be required by clause 27.2 (Unwinding
 of Hedging Contracts). 

 
	
  

 	
  

 	
  

 
	
 28.3

 	
  

 	
 Value of security 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrowers do not comply with clause 23 (Minimum security value). 

 

70

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.4

 	
  

 	
 Insurance 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.4.1

 	
  

 	
 The Insurances of any Ship are not placed and kept in force in the
 manner required by clause 22 (Insurance).
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.4.2

 	
  

 	
 Any insurer either: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 cancels any such Insurances and such Insurances are not immediately
 replaced by the Borrowers to the full satisfaction of the Lenders; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 disclaims liability under them by reason of any mis-statement or
 failure or default by any person. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.5

 	
  

 	
 Other obligations 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.5.1

 	
  

 	
 An Obligor does not comply with any provision of the Finance
 Documents (other than those referred to in clauses 28.1 (Non-payment), 28.2 (Hedging Contracts), 28.3 (Value of security) and 28.4 (Insurance)). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.5.2

 	
  

 	
 No Event of Default under clause 28.5.1 above will occur if the Agent
 (acting on the instructions of the Lenders) considers that the failure to
 comply is capable of remedy (including by way of the excess cash capture
 provisions pursuant to clause 19.12 (Excess
 Cash recapture)) and the failure is remedied within ten Business
 Days of the Agent giving notice to the Borrowers. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.6

 	
  

 	
 Financial Covenants 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A Guarantor or a Counter Guarantor does not comply with any financial
 covenant pursuant to clause 5 of the GasLog Guarantee (Financial covenants) or, as the case may
 be, clause 5 of a Counter Guarantee (Financial
 covenants) or makes or is deemed to have made a representation or
 statement pursuant to clause 5 of the GasLog Guarantee (Financial covenants) or, as the case may
 be, clause 5 of a Counter Guarantee (Financial
 covenants), which is or proves to have been incorrect or
 misleading in any material respect when made or deemed to be made. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.7

 	
  

 	
 Misrepresentation 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any representation or statement made or deemed to be made by an
 Obligor in the Finance Documents or any other document delivered by or on
 behalf of any Obligor under or in connection with any Finance Document is or
 proves to have been incorrect or misleading in any material respect when made
 or deemed to be made. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.8

 	
  

 	
 Cross default 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.8.1

 	
  

 	
 Any Financial Indebtedness of any Obligor is not paid when due nor
 within any originally applicable grace period. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.8.2

 	
  

 	
 Any Financial Indebtedness of any Obligor is declared to be or
 otherwise becomes due and payable prior to its specified maturity as a result
 of an event of default (however described). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.8.3

 	
  

 	
 The counterparty to a Treasury Transaction entered into by any
 Obligor becomes entitled to terminate that Treasury Transaction early by
 reason of an event of default (however described). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.8.4

 	
  

 	
 Any creditor of any Obligor becomes entitled to declare any Financial
 Indebtedness of that Obligor due and payable prior to its specified maturity
 as a result of an event of default (however described). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.8.5

 	
  

 	
 No Event of Default will occur under this clause 28.8 if the
 aggregate amount of Financial Indebtedness falling within clauses 28.8.1 to
 28.8.4 above is less than $5,000,000 in respect of each of the Counter
 Guarantors and the Guarantors and/or less than $1,000,000 in respect of any
 other Obligor. 

 

71

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.9

 	
  

 	
 Insolvency 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.9.1

 	
  

 	
 An Obligor is unable or admits inability to pay its debts as they
 fall due, suspends making payments on any of its debts or, by reason of
 actual financial difficulties, commences negotiations with one or more of its
 creditors with a view to rescheduling any of its indebtedness. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.9.2

 	
  

 	
 The value of the assets of any Obligor is less than its liabilities
 (taking into account contingent and prospective liabilities). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.9.3

 	
  

 	
 A moratorium is declared in respect of any indebtedness of any
 Obligor. If a moratorium occurs, the ending of the moratorium will not remedy
 any Event of Default caused by that moratorium. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.10

 	
  

 	
 Insolvency proceedings 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.10.1

 	
  

 	
 Any corporate action, legal proceedings or other procedure or step is
 taken in relation to: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the suspension of payments, a moratorium of any indebtedness, winding-up,
 dissolution, administration or reorganisation (by way of voluntary
 arrangement, scheme of arrangement or otherwise) of any Obligor; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a composition, compromise, assignment or arrangement with any
 creditor of any Obligor; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the appointment of a liquidator, receiver, administrator,
 administrative receiver, compulsory manager or other similar officer in
 respect of any Obligor or any of its assets (including the directors of any
 Obligor requesting a person to appoint any such officer in relation to it or
 any of its assets); or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 enforcement of any Security Interest over any assets of any Obligor, 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or any analogous procedure or step is taken in any jurisdiction. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.10.2

 	
  

 	
 Clause 28.10.1 shall not apply to any winding-up petition (or
 analogous procedure or step) which is frivolous or vexatious and is
 discharged, stayed or dismissed within seven days of commencement or, if
 earlier, the date on which it is advertised. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.11

 	
  

 	
 Creditors’ process 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.11.1

 	
  

 	
 Any expropriation, attachment, sequestration, distress, execution or
 analogous process affects any asset or assets of any Obligor (having an
 aggregate value equal to or in excess of $5,000,000 in respect of the Counter
 Guarantors and the Guarantors and $1,000,000 in respect of any other Obligor)
 and is not discharged within seven days. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.11.2

 	
  

 	
 Any judgment or order (for an amount in excess of $5,000,000 in
 respect of the Counter Guarantors and the Guarantors and $1,000,000 in
 respect of any other Obligor) is made against any Obligor and is not stayed
 or complied with within thirty days. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.12

 	
  

 	
 Unlawfulness and invalidity

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.12.1

 	
  

 	
 It is or becomes unlawful for an Obligor to perform any of its
 obligations under the Finance Documents or any Security Interest created or
 expressed to be created or evidenced by the Security Documents ceases to be
 effective. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.12.2

 	
  

 	
 Any obligation or obligations of any Obligor under any Finance
 Documents are not (subject to the Legal Reservations) or cease to be legal,
 valid, binding or enforceable and the cessation individually or cumulatively
 materially and adversely affects the interests of the Lenders under the
 Finance Documents. 

 

72

	
  

 	
  

 	
  

 
	
 28.12.3

 	
  

 	
 Any Finance Document or any Security Interest created or expressed to
 be created or evidenced by the Security Documents ceases to be in full force
 and effect or is alleged by a party to it (other than a Finance Party) to be
 ineffective for any reason. 

 
	
  

 	
  

 	
  

 
	
 28.12.4

 	
  

 	
 Any Security Document does not create legal, valid, binding and
 enforceable security over the assets charged under that Security Document or
 the ranking or priority of such security is adversely affected. 

 
	
  

 	
  

 	
  

 
	
 28.13

 	
  

 	
 Cessation of business 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Obligor suspends or ceases to carry on (or threatens to suspend
 or cease to carry on) all or a material part of its business. 

 
	
  

 	
  

 	
  

 
	
 28.14

 	
  

 	
 Expropriation 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The authority or ability of any Obligor to conduct its business is
 limited or wholly or substantially curtailed by any seizure, expropriation,
 nationalisation, intervention, restriction or other action by or on behalf of
 any governmental, regulatory or other authority or other person in relation
 to any Obligor or any of its assets. 

 
	
  

 	
  

 	
  

 
	
 28.15

 	
  

 	
 Repudiation and rescission of Finance
 Documents 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 An Obligor repudiates a Finance Document or evidences an intention to
 rescind a Finance Document. 

 
	
  

 	
  

 	
  

 
	
 28.16

 	
  

 	
 Litigation 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any litigation, alternative dispute resolution, arbitration or
 administrative proceeding is taking place against any Obligor or any of its
 assets, rights or revenues, and which, if adversely determined, might
 reasonably be expected to have a Material Adverse Effect. 

 
	
  

 	
  

 	
  

 
	
 28.17

 	
  

 	
 Material Adverse Effect 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Environmental Incident or other event or circumstance or series
 of events (including any change of law) occurs which the Majority Lenders
 reasonably believe has, or is reasonably expected to have, a Material Adverse
 Effect. 

 
	
  

 	
  

 	
  

 
	
 28.18

 	
  

 	
 Security enforceable 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Security Interest (other than a Permitted Maritime Lien) in
 respect of Charged Property becomes enforceable. 

 
	
  

 	
  

 	
  

 
	
 28.19

 	
  

 	
 Arrest of Ship 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Ship is arrested, confiscated, seized, taken in execution,
 impounded, forfeited, detained in exercise or purported exercise of any
 possessory lien or other claim and the relevant Owner fails to procure the
 release of such Ship within a period of 15 days thereafter (or such longer
 period as may be approved). 

 
	
  

 	
  

 	
  

 
	
 28.20

 	
  

 	
 Ship registration 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the registration of any Ship under the laws and
 flag of its Flag State is cancelled or terminated or, where applicable, not
 renewed or, if such Ship is only provisionally registered on the date of its
 Mortgage, such Ship is not permanently registered under such laws within 90
 days of such date. 

 
	
  

 	
  

 	
  

 
	
 28.21

 	
  

 	
 Political risk 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Flag State of any Ship or any Relevant Jurisdiction of an Obligor
 becomes involved in hostilities or civil war or there is a seizure of power
 in the Flag State or any such Relevant 

 

73

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Jurisdiction by unconstitutional means if, in any such case, such
 event, in the reasonable opinion of the Agent (acting on the instructions of
 the Lenders), has or is reasonably to have, a Material Adverse Effect and,
 within 15 days of notice from Agent to do so (or such longer period as may be
 approved), such action as the Agent may require to ensure that such
 circumstances will not have such an effect has not been taken by the
 Borrowers. 

 
	
  

 	
  

 	
  

 	
  

 
	
 28.22

 	
  

 	
 Charter termination 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Charter or Replacement Charter of a Ship is
 cancelled or rescinded or (except as a result of the Ship being a Total Loss)
 frustrated or a Ship is withdrawn from service under the Charter or, as the
 case may be, the Replacement Charter, before the time the relevant Charter or
 relevant Replacement Charter was scheduled to expire, or a Ship is not
 delivered and accepted for service under the relevant Time Charter (as
 defined in Schedule 2 (Ship Information)
 within five days after completion of discharge of the relevant Ship’s cargo
 following its first maiden voyage under the relevant Maiden Voyage Charter
 (as defined in Schedule 2) provided however that no Event of Default shall
 occur under this clause if within 30 days of such cancellation, rescission,
 frustration or withdrawal the Borrowers shall have paid the sum of
 $20,000,000 to the Reserve Account pursuant to clause 24.5(Termination by Owner) which sum may,
 notwithstanding clause 25.3 (Reserve
 Account), only be released if approved or if: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 at any time after such cancellation, rescission, frustration or
 withdrawal, the relevant Owner shall have entered into a Replacement Charter;
 and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the relevant Owner has executed a Security Interest in respect of
 such Replacement Charter in an approved form and delivered to the Agent any
 conditions precedent of the nature described in Schedule 3 (Conditions precedent) as required by the
 Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For the avoidance of doubt, the Borrowers shall not be entitled to
 pay the sum of $20,000,000 to the Reserve Account as set out above in the
 case of a Ship not being delivered and accepted for service under the
 relevant Time Charter (as defined in Schedule 2 (Ship Information) within five days after completion of
 discharge of the relevant Ship’s cargo following its first maiden voyage
 under the relevant Maiden Voyage Charter (as defined in Schedule 2). 

 
	
  

 	
  

 	
  

 	
  

 
	
 28.23

 	
  

 	
 Change of Control 

 
	
  

 	
  

 	
  

 	
  

 
	
 28.23.1

 	
  

 	
 Before an IPO has been completed, a Change of Control occurs. 

 
	
  

 	
  

 	
  

 	
  

 
	
 28.23.2

 	
  

 	
 After an IPO has been completed, an IPO Change of Control occurs and
 the Borrowers fail to prepay the Loan in full and all other amounts accrued
 or outstanding under the Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 28.23.3

 	
  

 	
 At any time:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any Borrower ceases to be a wholly-owned subsidiary of GasLog
 Carriers; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 GasLog Carriers ceases to be a wholly-owned subsidiary of GasLog. 

 
	
  

 	
  

 	
  

 	
  

 
	
 28.24

 	
  

 	
 Acceleration 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On and at any time after the occurrence of an Event of Default which
 is continuing the Agent may, and shall if so directed by the Lenders, by
 notice to the Borrowers: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 cancel the Total Commitments at which time they shall immediately be
 cancelled; and/or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 declare that all or part of the Loan, together with accrued interest,
 and all other amounts accrued or outstanding under the Finance Documents be
 immediately due and payable, at which time they shall become immediately due
 and payable; and/or 

 

74

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 declare that all or part of the Loan be payable on demand, at which
 time it shall immediately become payable on demand by the Agent on the
 instructions of the Lenders; and/or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 declare that no withdrawals be made from any Account; and/or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 exercise or direct the Security Agent and/or any other beneficiary of
 the Security Documents to exercise any or all of its rights, remedies, powers
 or discretions under the Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 29

 	
  

 	
 Position of
 Hedging Providers 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.1

 	
  

 	
 Rights of Hedging Providers

 
	
  

 	
  

 	
  

 	
  

 
	
 29.1.1

 	
  

 	
 Each Hedging Provider is a Finance Party and as such, will be
 entitled to share in the security constituted by the Security Documents in
 respect of any liabilities of the Borrowers under the Hedging Contracts with
 such Hedging Provider in the manner and to the extent contemplated by the
 Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.1.2

 	
  

 	
 If a Borrower wishes to enter into a Treasury Transaction, each
 Hedging Provider shall have the right to participate in any proposed Treasury
 Transaction on an equal basis. 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.2

 	
  

 	
 No voting rights 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Hedging Provider shall be entitled to vote on any matter where a
 decision of the Lenders alone is required under this Agreement, whether
 before or after the termination or close out of the Hedging Contracts with
 such Hedging Provider, provided that each Hedging Provider shall be entitled
 to vote on any matter where a decision of all the Finance Parties is
 expressly required. 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.3

 	
  

 	
 Acceleration and enforcement of security 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Neither the Agent nor the Security Agent nor any other beneficiary of
 the Security Documents shall be obliged, in connection with any action taken
 or proposed to be taken under or pursuant to clause 28 (Events of Default) or pursuant to the
 other Finance Documents, to have any regard to the requirements of the
 Hedging Provider except to the extent that the relevant Hedging Provider is
 also a Lender. 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.4

 	
  

 	
 Close out of Hedging Contracts 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.4.1

 	
  

 	
 The Parties agree that at any time on and after any Event of Default
 the Agent (acting on the instructions of the Majority Lenders) shall be
 entitled, by notice in writing to a Hedging Provider, to instruct such
 Hedging Provider to terminate and close out any Hedging Transactions (or part
 thereof) with that Hedging Provider. The relevant Hedging Provider will
 terminate and close out the relevant Hedging Transactions (or parts thereof)
 and/or the relevant Hedging Contracts in accordance with such notice
 immediately upon receipt of such notice. 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.4.2

 	
  

 	
 No Hedging Provider shall be entitled to terminate or close out any
 Hedging Contract or any Hedging Transaction under it prior to its stated
 maturity except: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in accordance with a notice served by the Agent under clause 29.4.1;
 or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 if the Borrowers have not paid amounts due under the Hedging Contract
 and such amounts remain unpaid for a period of 30 days after the due date for
 payment and the Agent (acting on the instructions of the Majority Lenders)
 consents to such termination or close out; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 if the Agent takes any action under clause 28.24 (a), (b), (c), (d)
 or (e); or 

 

75

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 if the Loan and other amounts outstanding under the Finance Documents
 (other than amounts outstanding under the Hedging Contracts) have been repaid
 by the Borrowers in full. 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.4.3

 	
  

 	
 If there is a net amount payable to any Borrower under a Hedging
 Transaction or a Hedging Contract upon its termination and close out, the
 relevant Hedging Provider shall forthwith pay that net amount (together with
 interest earned on such amount) to the Security Agent for application in
 accordance with clause 32.22 (Order of
 application). 

 
	
  

 	
  

 	
  

 	
  

 
	
 29.4.4

 	
  

 	
 A Hedging Provider (in any capacity) shall not set-off any such net
 amount against or exercise any right of combination in respect of any other
 claim it has against a Borrower.

 

76

SECTION 8 - CHANGES TO PARTIES

	
  

 	
  

 	
  

 	
  

 
	
 30

 	
  

 	
 Changes to the Lenders

 
	
  

 	
  

 	
  

 
	
 30.1 

 	
  

 	
 Assignments and transfers by the Lenders 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to this clause 30, a Lender (the “Existing Lender”) may
 assign any of its rights to another bank or financial institution or to a
 trust, fund or other entity which is regularly engaged in or established for
 the purpose of making, purchasing or investing in loans, securities or other
 financial assets (the “New Lender”).

 
	
  

 	
  

 	
  

 
	
 30.2 

 	
  

 	
 Conditions of assignment 

 
	
  

 	
  

 	
  

 
	
 30.2.1

 	
  

 	
 The consent of the Borrowers is required for an assignment by a
 Lender, unless the assignment is to another Lender or an Affiliate of a
 Lender or an Event of Default is continuing. The Agent will immediately
 advise the Borrowers of the assignment.

 
	
  

 	
  

 	
  

 
	
 30.2.2

 	
  

 	
 The Borrowers’ consent may not be unreasonably withheld or delayed
 and will be deemed to have been given five Business Days after the Lender has
 requested consent unless consent is expressly refused within that time. The
 Borrowers shall not be entitled to refuse or withhold consent solely because
 an assignment may result in an increase to the Mandatory Cost.

 
	
  

 	
  

 	
  

 
	
 30.2.3

 	
  

 	
 An assignment will only be effective:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 on receipt by the Agent of written confirmation from the New Lender
 (in form and substance satisfactory to the Agent) that the New Lender will
 assume the same obligations to the Borrowers and the other
 Finance Parties as it would have been under if it was an Original Lender;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 on the New Lender entering into any documentation required for it to
 accede as a party to any Security Document to which the Original Lender is a
 party in its capacity as a Lender;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 if at the time when an assignment takes effect more than one
 Utilisation is outstanding, the assignment of an Existing Lender’s
 participation in the Utilisations (if any) under the Facility shall take
 effect in respect of the same fraction of each such Utilisation;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 on the performance by the Agent of all “know your customer” or other
 checks relating to any person that it is required to carry out in relation to
 such assignment to a New Lender, the completion of which the Agent shall
 promptly notify to the Lender and the New Lender; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 if that Existing Lender assigns equal fractions of its Commitment and
 participation in the Utilisations (if any) under the Facility.

 
	
  

 	
  

 	
  

 
	
 30.2.4

 	
  

 	
 Each New Lender, by executing the relevant Transfer Certificate,
 confirms, for the avoidance of doubt, that the Agent has authority to execute
 on its behalf any amendment or waiver that has been approved by or on behalf
 of the requisite Lender or Lenders in accordance with this Agreement on or
 prior to the date on which the transfer becomes effective in accordance with
 this Agreement and that it is bound by that decision to the same extent as
 the Existing Lender would have been had it remained a Lender.

 
	
  

 	
  

 	
  

 
	
 30.3

 	
  

 	
 Fee

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The New Lender shall, on the date upon which an assignment takes
 effect, pay to the Agent (for its own account) a fee of $3,000.

 

77

	
  

 	
  

 	
  

 	
  

 
	
 30.4 

 	
  

 	
 Limitation of responsibility of Existing Lenders 

 
	
  

 	
  

 	
  

 
	
 30.4.1

 	
  

 	
 Unless expressly agreed to the contrary, an Existing Lender makes no
 representation or warranty and assumes no responsibility to a New Lender for:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the legality, validity, effectiveness, adequacy or enforceability of
 the Finance Documents or any other documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the financial condition of any Obligor;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the performance and observance by any Obligor or any other person of
 its obligations under the Finance Documents or any other documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the application of any Basel II Regulation and the Basel III Regulation to the transactions contemplated by the Finance Documents; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 the accuracy of any statements (whether written or oral) made in or
 in connection with any Finance Document or any other document, 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and any
 representations or warranties implied by law are excluded.

 
	
  

 	
  

 	
  

 
	
 30.4.2

 	
  

 	
 Each New Lender confirms to the Existing Lender and the other Finance
 Parties that it:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 has made (and shall continue to make) its own independent
 investigation and assessment of:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 the financial condition and affairs of the Obligors and their related entities in connection with its
participation in this Agreement; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 the application of any Basel II Regulation and the Basel III Regulation, to the transactions contemplated by the Finance Documents,

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and has not relied exclusively on any
 information provided to it by the Existing Lender or any other Finance Party
 in connection with any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 will continue to make its own independent appraisal of the application of any Basel II Regulation and the Basel III Regulation to the transactions contemplated by the Finance Documents; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 will continue to make its own independent appraisal of the
 creditworthiness of each Obligor and its related entities whilst any amount
 is or may be outstanding under the Finance Documents or any Commitment is in
 force.

 
	
  

 	
  

 	
  

 	
  

 
	
 30.4.3

 	
  

 	
 Nothing in any Finance Document obliges an Existing Lender to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 accept a re-assignment from a New Lender of any of the rights
 assigned under this clause 30 (Changes to the Lenders); or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or by reason of the application of any Basel II Regulation or the Basel III Regulation to the transactions contemplated by the Finance Documents or otherwise.

 
	
  

 	
  

 	
  

 
	
 30.5

 	
  

 	
 Procedure for transfer

 
	
  

 	
  

 	
  

 
	
 30.5.1

 	
  

 	
 Subject to the conditions set out in clause 30.2 (Conditions
 of assignment) an assignment is effected in accordance with clause
 30.5.2 below when (a) the Agent executes an otherwise duly completed Transfer
 Certificate and (b) the Agent executes any document required under clause 30.2.3
 which it may be necessary for it to execute in each case delivered to it by
 the Existing Lender and the New Lender duly executed by them and, in the case
 of any such other document,

 

78

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  any other relevant person. The Agent shall, as
 soon as reasonably practicable after receipt by it of a Transfer Certificate and
 any such other document each duly completed, appearing on its face to comply
 with the terms of this Agreement and delivered in accordance with the terms
 of this Agreement, execute that Transfer Certificate and such other document.
 The Obligors and the other Finance Parties irrevocably authorise the Agent to
 execute any Transfer Certificate on their behalf without any consultations
 with them.
 
	
  
 	
  
 	
  
 	
  
 
	
 30.5.2
 	
  
 	
 On the Transfer Date:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 to the extent that in the Transfer Certificate the Existing Lender
 seeks to be released from its obligations under the Finance Documents, the
 Existing Lender shall be released from further obligations towards the
 Obligors and the other Finance Parties under the Finance Documents and rights
 of the Obligors and the other Finance Parties against the Existing Lender
 under the Finance Documents shall be cancelled (being the Discharged
 Obligations) (but the obligations owed by the Obligors under the
 Finance Documents shall not be released);
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 the New Lender shall assume obligations towards each of the Obligors
 who are a Party and/or the Obligors and the other Finance Parties shall
 acquire rights against the New Lender which differ from the Discharged Rights
 and Obligations only insofar as the New Lender has assumed and/or the
 Obligors and the other Finance Parties acquired the same in place of the
 Existing Lender;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (c)
 	
 the other Finance Parties and the New Lender shall acquire the same
 rights and assume the same obligations between themselves as they would have acquired
 and assumed had the New Lender been an Original Lender with the rights and/or
 obligations acquired or assumed by it as a result of the transfer and to that
 extent the Security Agent, Existing Lender and the other Finance Parties
 shall each be released from further obligations to each other under the
 Finance Documents; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (d)
 	
 the New Lender shall become a Party to the Finance Documents as a
 “Lender” for the purposes of all the Finance Documents.
 
	
  
 	
  
 	
  
 
	
 30.6
 	
  
 	
 Copy of Transfer Certificate to Borrowers
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 The Agent shall, as soon as reasonably practicable after it has
 executed a Transfer Certificate and any other document required under clause
 30.2.3, send a copy of that Transfer Certificate and such documents to the
 Borrowers.
 
	
  
 	
  
 	
  
 
	
 30.7
 	
  
 	
 Disclosure of information
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Any Lender may disclose to any of its Affiliates and, in relation to
 (a) and (b) below, with the consent of the Borrowers (such consent not to be
 unreasonably withheld or delayed), to any other person:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 to (or through) whom that Lender assigns (or may potentially assign)
 all or any of its rights and obligations under the Finance Documents;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 with (or through) whom that Lender enters into (or may potentially
 enter into) any sub-participation in relation to, or any other transaction
 under which payments are to be made by reference to, the Finance Documents or
 any Obligor; or
 
	
  
 	
  
 	
  
 	
  
 
	 	 	(c)
	
 to whom, and to the extent that, information is required to be
 disclosed by any applicable law or regulation,

	 	 	 	 
	 	 	
and any Finance Party may disclose to a rating agency or its
 professional advisers or (with the consent of the Borrowers) any other person,
 any information about any Obligor, any Group and the Finance Documents as
 that Finance Party shall consider appropriate.

79

	
  
 	
  
 	
  
 	
  
 
	
 31
 	
  
 	
 Changes to the
 Obligors
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 No Obligor may
 assign any of its rights or transfer any of its rights or obligations under
 the Finance Documents.
 

80

SECTION 9 - THE FINANCE PARTIES

	
  

 	
  

 	
  

 	
  

 
	
 32

 	
  

 	
 Roles of Agent,
 Security Agent and Arranger

 
	
  

 	
  

 	
  

 
	
 32.1

 	
  

 	
 Appointment of the Agent

 
	
  

 	
  

 	
  

 
	
 32.1.1

 	
  

 	
 Each other Finance Party (other than the Security Agent) appoints the
 Agent to act as its agent under and in connection with the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 32.1.2

 	
  

 	
 Each such other Finance Party authorises the Agent:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to exercise the rights, powers, authorities and discretions
 specifically given to the Agent under or in connection with the Finance
 Documents together with any other incidental rights, powers, authorities and
 discretions; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to execute each of the Security Documents and all other documents
 that may be approved by the Lenders for execution by it.

 
	
  

 	
  

 	
  

 
	
 32.2

 	
  

 	
 Duties of the Agent

 
	
  

 	
  

 	
  

 
	
 32.2.1

 	
  

 	
 The Agent shall promptly forward to a Party the original or a copy of
 any document which is delivered to the Agent for that Party by any other
 Party.

 
	
  

 	
  

 	
  

 
	
 32.2.2

 	
  

 	
 Without prejudice to clause 30.6 (Copy of Transfer Certificate to Borrowers),
 clause 31.2.1 shall not apply to any Transfer Certificate.

 
	
  

 	
  

 	
  

 
	
 32.2.3

 	
  

 	
 Except where a Finance Document specifically provides otherwise, the
 Agent is not obliged to review or check the adequacy, accuracy or
 completeness of any document it forwards to another Party.

 
	
  

 	
  

 	
  

 
	
 32.2.4

 	
  

 	
 If the Agent receives notice from a Party referring to this
 Agreement, describing a Default and stating that the circumstance described
 is a Default, it shall promptly notify the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 32.2.5

 	
  

 	
 If the Agent is aware of the non-payment of any principal, interest,
 commitment fee or other fee payable to a Finance Party (other than the Agent
 or an Arranger or the Security Agent for their own account) under this
 Agreement it shall promptly notify the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 32.2.6

 	
  

 	
 The Agent’s duties under the Finance Documents are solely mechanical
 and administrative in nature.

 
	
  

 	
  

 	
  

 
	
 32.3

 	
  

 	
 Role of the Arrangers

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as specifically provided in the Finance Documents, the
 Arrangers have no obligations of any kind to any other Party under or in
 connection with any Finance Document or the transactions contemplated by the
 Finance Documents.

 
	
  

 	
  

 	
  

 
	
 32.4

 	
  

 	
 No fiduciary duties

 
	
  

 	
  

 	
  

 
	
 32.4.1

 	
  

 	
 Nothing in this Agreement constitutes the Agent or an Arranger as a
 trustee or fiduciary of any other person.

 
	
  

 	
  

 	
  

 
	
 32.4.2

 	
  

 	
 None of the Agent, the Security Agent or any Arranger shall be bound to account to any Lender or any Hedging Provider for any sum or the profit element of any sum received by it for its own account or have any obligations to the other Finance Parties beyond those expressly stated in the Finance Documents. 

 

81

	
  
 	
  
 	
  
 	
  
 
	
 32.5
 	
  
 	
 Business with the Group
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 The Agent, the Security Agent and any Arranger may accept deposits
 from, lend money to and generally engage in any kind of banking or other
 business with any Obligor or their Affiliates.
 
	
  
 	
  
 	
  
 
	
 32.6
 	
  
 	
 Rights and discretions of the Agent
 
	
  
 	
  
 	
  
 
	
 32.6.1
 	
  
 	
 The Agent may rely on:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 any representation, notice or document believed by it to be genuine,
 correct and appropriately authorised; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 any statement made by a director, authorised signatory or employee of
 any person regarding any matters which may reasonably be assumed to be within
 his or her knowledge or within his or her power to verify.
 
	
  
 	
  
 	
  
 	
  
 
	
 32.6.2
 	
  
 	
 The Agent may assume (unless it has received notice to the contrary
 in its capacity as agent for the other Finance Parties) that:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 no Default has occurred (unless it has actual knowledge of a Default
 arising under clause 28.1 (Non-payment));
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 any right, power, authority or discretion vested in any Party or the
 Majority Lenders has not been exercised; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (c)
 	
 any notice or request made by a Borrower (other than a Utilisation
 Request or Selection Notice) is made on behalf of and with the consent and
 knowledge of all the Obligors.
 
	
  
 	
  
 	
  
 
	
 32.6.3
 	
  
 	
 The Agent may engage, pay for and rely on the advice or services of
 any lawyers, accountants, surveyors or other experts in the conduct of its
 obligations and responsibilities under the Finance Documents.
 
	
  
 	
  
 	
  
 
	
 32.6.4
 	
  
 	
 The Agent may act in relation to the Finance Documents through its
 personnel and agents.
 
	
  
 	
  
 	
  
 
	
 32.6.5
 	
  
 	
 The Agent may disclose to any other Party any information it
 reasonably believes it has received as agent under this Agreement.
 
	
  
 	
  
 	
  
 
	
 32.6.6
 	
  
 	
 The Agent is not obliged to disclose to any Finance Party any details
 of the rate notified to the Agent by any Lender or the identity of any such
 Lender for the purposes of clause 10.2.1(b) (Market Disruption).
 
	
  
 	
  
 	
  
 
	
 32.6.7
 	
  
 	
 Notwithstanding any other provision of any Finance Document to the
 contrary, neither the Agent nor any Arranger is obliged to do or omit to do
 anything if it would or might in its reasonable opinion constitute a breach
 of any law or regulation or a breach of a fiduciary duty or duty of
 confidentiality. The Agent and any Arranger may do anything which in its
 opinion, is necessary or desirable to comply with any law or regulation of
 any jurisdiction.
 
	
  
 	
  
 	
  
 
	
 32.6.8
 	
  
 	
 Without prejudice to the generality of clause 32.6.7, the Agent shall
 be entitled (but not obliged) to disclose the identity of a Defaulting Lender
 to the other Finance Parties and the Borrowers.
 
	
  
 	
  
 	
  
 
	
 32.7
 	
  
 	
 Lenders’ instructions
 
	
  
 	
  
 	
  
 
	32.7.1
	 	Unless a contrary indication appears in a Finance Document, the Agent
 shall:
	 	 	 
	
  
 	
  
 	(a)
	
 exercise any right, power, authority or discretion vested in it as
 Agent (including giving instructions to the Security Agent) in accordance
 with any instructions given to it by the Lenders (or, if so instructed by the
 Lenders, refrain from exercising any right, power, authority or discretion
 vested in it as Agent); and

82

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 not be liable for any act (or omission) if it acts (or refrains from
 taking any action) in accordance with an instruction of the Lenders.
 
	
  
 	
  
 	
  
 
	
 32.7.2
 	
  
 	
 Unless a contrary indication appears in a Finance Document, any
 instructions given by the Lenders to the Agent (in relation to any right,
 power, authority or discretion vested in it as Agent) shall be binding on all
 the Finance Parties (other than the Security Agent).
 
	
  
 	
  
 	
  
 
	
 32.7.3
 	
  
 	
 The Agent may refrain from acting in accordance with the instructions
 of the Majority Lenders (if applicable in accordance with the Finance
 Documents) or, if appropriate, the Lenders until it has received such
 security as it may require for any cost, loss or liability (together with any
 associated VAT) which it may incur in complying with the instructions.
 
	
  
 	
  
 	
  
 
	
 32.7.4
 	
  
 	
 In the absence of, or while awaiting, instructions from the Majority
 Lenders (if applicable in accordance with the Finance Documents) or, if
 appropriate, the Lenders, the Agent may act (or refrain from taking action)
 as it considers to be in the best interest of the Finance Parties.
 
	
  
 	
  
 	
  
 
	
 32.7.5
 	
  
 	
 The Agent is not authorised to act on behalf of a Lender or a Hedging Provider (without first obtaining that Lender’s or that Hedging Provider’s consent) in any legal or arbitration proceedings relating to any Finance Document.  This clause  32.7.5 shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Security Documents or enforcement of the Security Documents.
 
	
  
 	
  
 	
  
 
	
 32.7.6
 	
  
 	
 Neither the Agent nor any Arranger shall be obliged to request any
 certificate, opinion or other information under clause 18 (Information
 undertakings) unless so required in writing by a Lender or a Hedging Provider, in which case the Agent shall promptly make the appropriate request of the Borrowers if such request would be in accordance with the terms of this Agreement.
 
	
  
 	
  
 	
  
 
	
 32.8
 	
  
 	
 Responsibility for documentation and other
 matters
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Neither the Agent nor any Arranger:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 is responsible for the adequacy, accuracy and/or completeness of any
 information (whether oral or written) supplied by the Agent, any Arranger, an
 Obligor or any other person given in or in connection with any Finance
 Document or the transactions contemplated in the Finance Documents or of any
 representations in any Finance Document or of any copy of any document
 delivered under any Finance Document;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 is responsible for the legality, validity, effectiveness, adequacy or
 enforceability of any Finance Document or any Charter Document or Building
 Contract Document or any other agreement, arrangement or document entered
 into, made or executed in anticipation of or in connection with any Finance
 Document or any Charter Document or Building Contract Document;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (c)
 	
 is responsible for any determination as to whether any information
 provided or to be provided to any Finance Party is non-public information the
 use of which may be regulated or prohibited by applicable law or regulation
 relating to insider dealing or otherwise;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (d)
 	
 is responsible for the application of any Basel II Regulation or the Basel III Regulation to the transactions contemplated by the Finance Documents; 
 
	 	 	 	 
	 
	 
	(e)
	is responsible for any loss to the Trust Property arising in
      consequence of the failure, depreciation or loss of any Charged Property or
      any investments made or retained in good faith or by reason of any other
    matter or thing;

	 
	 
	 
	 

	 
	 
	(f)
	is obliged to account to any person for any sum or the profit element
      of any sum received by it for its own account;

83

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (g)
 	
 is responsible for the failure of any Obligor or any other party to
 perform its obligations under any Finance Document or any Charter Document or
 Building Contract Document or the financial condition of any such person;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (h)
 	
 is responsible to ascertain whether all deeds and documents which
 should have been deposited with it (or the Security Agent) under or pursuant
 to any of the Security Documents have been so deposited;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (i)
 	
 is responsible to investigate or make any enquiry into the title of
 any Obligor to any of the Charged Property or any of its other property or
 assets;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (j)
 	
 is responsible for the failure to register any of the Security
 Documents with the Registrar of Companies or any other public office;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (k)
 	
 is responsible for the failure to register any of the Security
 Documents in accordance with the provisions of the documents of title of any
 Obligor to any of the Charged Property;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (l)
 	
 is responsible for the failure to take or require any Obligor to take
 any steps to render any of the Security Documents effective as regards
 property or assets outside England or Wales or to secure the creation of any
 ancillary charge under the laws of the jurisdiction concerned; or
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (m)
 	
 is (unless it is the same entity as the Security Agent) responsible
 on account of the failure of the Security Agent to perform or discharge any
 of its duties or obligations under the Security Documents.
 
	
  
 	
  
 	
  
 
	
 32.9
 	
  
 	
 Exclusion
 of liability
 
	
  
 	
  
 	
  
 
	
 32.9.1
 	
  
 	
 Without limiting clause 32.9.2 (and without prejudice to the provisions
 of clause 35.9 (Disruption to Payment Systems etc.)), the Agent will not
 be liable for any action taken by it under or in connection with any Finance
 Document, unless directly caused by its gross negligence or wilful
 misconduct.
 
	
  
 	
  
 	
  
 
	
 32.9.2
 	
  
 	
 No Party (other than the Agent) may take any proceedings against any
 officer, employee or agent of the Agent in respect of any claim it might have
 against the Agent or in respect of any act or omission of any kind by that
 officer, employee or agent in relation to any Finance Document any officer,
 employee or agent of the Agent may rely on this clause subject to clause 1.3
 and the provisions of the Third Parties Act.
 
	
  
 	
  
 	
  
 
	
 32.9.3
 	
  
 	
 The Agent will not be liable for any delay (or any related
 consequences) in crediting an account with an amount required under the
 Finance Documents to be paid by the Agent if the Agent has taken all
 necessary steps as soon as reasonably practicable to comply with the
 regulations or operating procedures of any recognised clearing or settlement
 system used by the Agent for that purpose.
 
	
  
 	
  
 	
  
 
	32.9.4
	 	Nothing in this Agreement shall oblige the Agent or any Arranger to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender or any Hedging Provider and each Lender and each Hedging Provider confirms to the Agent and the Arrangers that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or any Arranger. 

	 	 	 
	32.10
	 	Lenders’ indemnity to the Agent
	 	 	 
	
  
 	
  
 	
 Each Lender shall (in proportion to its share of the Total
 Commitments or, if the Total Commitments are then zero, to its share of the
 Total Commitments immediately prior to their reduction to zero) indemnify the
 Agent, within three Business Days of demand, against any cost, loss or
 liability incurred by the Agent (otherwise than by reason of the Agent’s
 gross negligence or wilful misconduct) including the costs of any person
 engaged in accordance with clause 32.6.3 (Rights and discretions of the Agent) and
 any Receiver in acting as its agent under the 
 

84

	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Finance Documents (unless the
 Agent has been reimbursed by an Obligor pursuant to a Finance Document or out
 of the Trust Property).
 
	
  
 	
  
 	
  
 
	
 32.11
 	
  
 	
 Resignation of the Agent
 
	
  
 	
  
 	
  
 
	
 32.11.1
 	
  
 	
 The Agent may resign and appoint one of its Affiliates as successor by giving notice to the Lenders, the Hedging Providers, the Security Agent and the Borrowers.
 
	
  
 	
  
 	
  
 
	
 32.11.2
 	
  
 	
 Alternatively the Agent may resign by giving notice to the other
 Finance Parties and the Borrowers, in which case the Majority Lenders (after
 consultation with the Borrowers) may appoint a successor Agent acting through
 an office in the United Kingdom.
 
	
  
 	
  
 	
  
 
	
 32.11.3
 	
  
 	
 If the Majority Lenders have not appointed a successor Agent in
 accordance with clause 32.11.2 above within 20 days after notice of
 resignation was given, the Agent (after consultation with the Borrowers) may
 appoint a successor Agent.
 
	
  
 	
  
 	
  
 
	
 32.11.4
 	
  
 	
 The retiring Agent shall, at its own cost, make available to the
 successor Agent such documents and records and provide such assistance as the
 successor Agent may reasonably request for the purposes of performing its
 functions as Agent under the Finance Documents.
 
	
  
 	
  
 	
  
 
	
 32.11.5
 	
  
 	
 The Agent’s resignation notice shall only take effect upon the
 appointment of a successor.
 
	
  
 	
  
 	
  
 
	
 32.11.6
 	
  
 	
 Upon the appointment of a successor, the retiring Agent shall be
 discharged from any further obligation in respect of the Finance Documents
 but shall remain entitled to the benefit of this clause 32. Its successor and
 each of the other Parties shall have the same rights and obligations amongst
 themselves as they would have had if such successor had been an original
 Party.
 
	
  
 	
  
 	
  
 
	
 32.11.7
 	
  
 	
 After consultation with the Borrowers, the Majority Lenders may, by
 notice to the Agent, require it to resign in accordance with clause 32.11.2.
 In this event, the Agent shall resign in accordance with clause 32.11.2.
 
	
  
 	
  
 	
  
 
	
 32.12
 	
  
 	
 Confidentiality
 
	
  
 	
  
 	
  
 
	
 32.12.1
 	
  
 	
 In acting as agent for the Finance Parties, the Agent shall be
 regarded as acting through its department, division or team directly
 responsible for the management of the Finance Documents which shall be
 treated as a separate entity from any other of its divisions, departments or
 teams.
 
	
  
 	
  
 	
  
 
	
 32.12.2
 	
  
 	
 If information is received by another division or department of the
 Agent, it may be treated as confidential to that division or department and
 the Agent shall not be deemed to have notice of it.
 
	
  
 	
  
 	
  
 
	
 32.12.3
 	
  
 	
 Notwithstanding any other provision of any Finance Document to the
 contrary, neither the Agent, nor any Arranger is obliged to disclose to any
 other person (a) any confidential information or (b) any other information if
 the disclosure would or might in its reasonable opinion constitute a breach
 of any law or a breach of a fiduciary duty.
 

	32.13
	 
	Relationship with the Lenders and Hedging Providers 

	 
	 
	 

	32.13.1
	 	
 The Agent may treat the persons shown in its records as Lenders or as Hedging Providers at the opening of business (in the place of its principal office as notified to the Finance Parties from time to time) as each Lender or (as the case may be) a Hedging Provider, acting through its Facility Office:

	 
	 
	 

	 
	 
	(a)
	entitled to or liable for any payment due under any Finance Document on that day; and

	 
	 
	 
	 

	 
	 
	(b)
	entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

85

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 unless it has received not less than five Business Days prior notice from that Lender or (as the case may be) a Hedging Provider to the contrary in accordance with the terms of this Agreement.  
 
	 	 	 
	
 32.13.2
 	
  
 	
 Each Lender shall supply the Agent with any information required by
 the Agent in order to calculate the Mandatory Cost in accordance with
 Schedule 6 (Mandatory Cost formulae).
 
	
  
 	
  
 	
  
 
	
 32.13.3
 	
  
 	
 Each Lender and each Hedging Provider shall supply the Agent with any information that the Agent may reasonably specify as being necessary or desirable to enable the Agent or the Security Agent to perform its functions as Agent or Security Agent. Each Lender and each Hedging Provider shall deal with the Security Agent exclusively through the Agent and shall not deal directly with the Security Agent.
 
	
  
 	
  
 	
  
 
	
 32.14
 	
  
 	
 Credit appraisal by the Lenders and the Hedging Providers
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender and each Hedging Provider confirms to each other Finance Party that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 the financial condition, status and nature of each Obligor;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 the legality, validity, effectiveness, adequacy or enforceability of
 any Finance Document or Charter Document or Building Contract Document and
 any other agreement, arrangement or document entered into, made or executed
 in anticipation of, under or in connection with any Finance Document or
 Charter Document or Building Contract Document;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (c)
 	
 the application of any Basel II Regulation and the Basel III Regulation to the transactions contemplated by the Finance Documents;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (d)
 	
 whether any Finance Party has recourse, and the nature and extent of
 that recourse, against any Party or any of its respective assets under or in
 connection with any Finance Document, the transactions contemplated by the
 Finance Documents or any other agreement, arrangement or document entered
 into, made or executed in anticipation of, under or in connection with any
 Finance Document;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (e)
 	
 the adequacy, accuracy and/or completeness of any information
 provided by the Agent, any Party or by any other person under or in
 connection with any Finance Document, Charter Document or Building Contract
 Document, the transactions contemplated by the Finance Documents or any other
 agreement, arrangement or document entered into, made or executed in
 anticipation of, under or in connection with any Finance Document, Charter
 Document or Building Contract Document; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (f)
 	
 the right of title of any person to, or the value or sufficiency of,
 any part of the Charged Property, the priority of the Security Documents or
 the existence of any Security Interest affecting the Charged Property.
 
	
  
 	
  
 	
  
 	
  
 
	
 32.15
 	
  
 	
 Reference Banks
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 If a Reference Bank (or, if a Reference Bank is not a Lender, the
 Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall
 (in consultation with the Borrowers) appoint another Lender or an Affiliate of
 a Lender to replace that Reference Bank.
 

	32.16
	 
	Agent’s management time

	 
	 
	 

	 
	 
	Any amount payable to the Agent under clause 14.3 (Indemnity
      to the Agent and the Security Agent), clause 16 (Costs and
        expenses) and clause 32.10 (Lenders’ indemnity to the Agent) shall
      include the cost of utilising the Agent’s management time or other resources
    and will be 

86

	
  
 	
  
 	
  
 	
  
 
	 	 	
calculated on the basis of such reasonable daily or hourly rates
      as the Agent may notify to the Borrowers and the Lenders, and is in addition
    to any fee paid or payable to the Agent under clause 11 (Fees).

	 	 	 
	
 32.17
 	
  
 	
 Deduction from amounts payable by the Agent
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 If any Party owes an amount to the Agent under the Finance Documents
 the Agent may, after giving notice to that Party, deduct an amount not
 exceeding that amount from any payment to that Party which the Agent would
 otherwise be obliged to make under the Finance Documents and apply the amount
 deducted in or towards satisfaction of the amount owed. For the purposes of
 the Finance Documents that Party shall be regarded as having received any
 amount so deducted.
 
	
  
 	
  
 	
  
 
	
 32.18
 	
  
 	
 Common parties
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Although the Agent and the Security Agent may from time to time be
 the same entity, that entity will have entered into the Finance Documents (to
 which it is party) in its separate capacities as agent for the Finance
 Parties and (as appropriate) security agent and trustee for the Finance
 Parties. Where any Finance Document provides for the Agent or Security Agent
 to communicate with or provide instructions to the other, while they are the
 same entity, such communication or instructions will not be necessary.
 
	
  
 	
  
 	
  
 
	
 32.19
 	
  
 	
 Security Agent
 
	
  
 	
  
 	
  
 
	
 32.19.1
 	
  
 	
 Each other Finance Party appoints the Security Agent to act as its
 trustee under and in connection with the Security Documents.
 
	
  
 	
  
 	
  
 
	
 32.19.2
 	
  
 	
 Each other Finance Party authorises the Security Agent:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 to exercise the rights, powers, authorities and discretions
 specifically given to the Security Agent under or in connection with the
 Finance Documents together with any other incidental rights, powers,
 authorities and discretions; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 to execute each of the Security Documents and all other documents
 that may be approved by the Agent and/or the Majority Lenders for execution
 by it.
 
	
  
 	
  
 	
  
 	
  
 
	
 32.19.3
 	
  
 	
 The Security Agent accepts its appointment under clause 32.19 (Security
 Agent) as trustee of the Trust Property with effect from the date
 of this Agreement and declares that it holds the Trust Property on trust for
 itself, the other Finance Parties (for so long as they are Finance Parties)
 on and subject to the terms set out in clauses 32.19 - 32.27 (inclusive) and
 the Security Documents to which it is a party.
 
	
  
 	
  
 	
  
 	
  
 
	
 32.20
 	
  
 	
 Application of certain clauses to Security
 Agent
 
	
  
 	
  
 	
  
 	
  
 
	
 32.20.1
 	
  
 	
 Clauses 32.6 (Rights and discretions of the Agent),
 32.8 (Responsibility
 for documentation and other matters), 32.9 (Exclusion of liability),
 32.10 (Lenders’
 indemnity to the Agent), 32.11 (Resignation of the Agent),
 32.12 (Confidentiality),
 32.13 (Relationship with the Lenders and the Hedging Providers), 32.14 (Credit appraisal by the Lenders and the Hedging Providers) and
 32.17 (Deduction from amounts payable by the Agent) shall each extend so as to
 apply to the Security Agent in its capacity as such and for that purpose each
 reference to the “Agent” in these clauses shall extend to include in addition
 a reference to the “Security Agent” in its capacity as such.
 

	32.20.2
	 
	In addition, clause 32.11 (Resignation of the Agent) shall, for the
      purposes of its application to the Security Agent pursuant to clause 32.20.1,
      have the following additional sub-clause:

	 
	 
	 
	 

	 
	 
	 
	At any time after the appointment of a successor, the retiring
      Security Agent shall do and execute all acts, deeds and documents reasonably
      required by its successor to transfer to it (or its nominee, as it may
      direct) any property, assets and rights previously vested in the retiring
    Security Agent pursuant to the Security Documents and which 

87

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  shall not have
 vested in its successor by operation of law. All such acts, deeds and
 documents shall be done or, as the case may be, executed at the cost of the
 retiring Security Agent (except where the Security Agent is retiring under
 clause 32.11.7 as extended to it by clause 32.20.1, in which case such costs
 shall be borne by the Lenders (in proportion to its share of the Total
 Commitments or, if the Total Commitments are then zero, to its share of the
 Total Commitments immediately prior to their reduction to zero).
 
	
  
 	
  
 	
  
 
	
 32.21
 	
  
 	
 Instructions to Security Agent
 
	
  
 	
  
 	
  
 
	
 32.21.1
 	
  
 	
 Unless a contrary indication appears in a Finance Document, the
 Security Agent shall:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 exercise any right, power, authority or discretion vested in it as
 Security Agent in accordance with any instructions given to it by the Agent
 (or, if so instructed by the Agent, refrain from exercising any right, power,
 authority or discretion vested in it as Security Agent); and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 not be liable for any act (or omission) if it acts (or refrains from
 taking any action) in accordance with such an instruction of the Agent (the
 Agent in each case acting on the instructions of the Majority Lenders (if
 applicable in accordance with the Finance Documents) or the Lenders.
 
	
  
 	
  
 	
  
 
	
 32.21.2
 	
  
 	
 Unless a contrary indication appears in a Finance Document, any
 instructions given by the Agent to the Security Agent in accordance with
 clause 32.21.1 will be binding on the Finance Parties.
 
	
  
 	
  
 	
  
 
	
 32.21.3
 	
  
 	
 The Security Agent may refrain from acting in accordance with the
 instructions of the Agent until it has received such security as it may
 require for any cost, loss or liability (together with any associated VAT)
 which it may incur in complying with the instructions.
 
	
  
 	
  
 	
  
 
	
 32.21.4
 	
  
 	
 In the absence of, or while awaiting, instructions from the Agent,
 (including in exceptional circumstances where time does not permit the Agent
 obtaining instructions from the Lenders and urgent action is required) the
 Security Agent may act (or refrain from taking action) as it considers to be
 in the best interest of the Finance Parties.
 
	
  
 	
  
 	
  
 
	
 32.21.5
 	
  
 	
 The Security Agent is not authorised to act on behalf of another
 Finance Party (without first obtaining that Finance Party’s consent) in any
 legal or arbitration proceedings relating to any Finance Document but this is
 without prejudice to clauses 32.21.1 and 32.21.4, including the right to
 enforce the Security Documents in accordance with these clauses.
 
	
  
 	
  
 	
  
 
	
 32.22
 	
  
 	
 Order of application
 
	
  
 	
  
 	
  
 
	
 32.22.1
 	
  
 	
 The Security Agent agrees to apply the Trust Property in accordance
 with the following respective claims:
 
	
  
 	
  
 	
   
 	
  
 
	
  
 	
  
 	
 (a)
 	
 first, as to a sum equivalent to the
 amounts payable to the Security Agent under the Finance Documents (excluding
 any amounts received by the Security Agent pursuant to clause 32.10 (Lenders’
 indemnity to the Agent) as extended to the Security Agent pursuant
 to clause 32.20 (Application of certain clauses to Security Agent)),
 for the Security Agent absolutely;
 

	 
	 
	(b)
	secondly, as to a sum equivalent to the
      aggregate amount then due and owing to the other Finance Parties under the
      Finance Documents, for those Finance Parties absolutely, and pro-rata to the
    amounts owing to them under the Finance Documents;

	 
	 
	 
	 

	 
	 
	(c)
	thirdly, until such time as the Security
      Agent is satisfied that all obligations owed to the Finance Parties have been
      irrevocably and unconditionally discharged in full, held by the Security
      Agent on a suspense account for payment of any further amounts owing to the Finance
      Parties under the Finance Documents and further application in accordance
      with this clause 32.22.1 as and when any such amounts later fall due;

88

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (d)
 	
 fourthly, to such other persons (if any)
 as are legally entitled thereto in priority to the Obligors; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (e)
 	
 fifthly, as to the balance (if any), for
 the Obligors by or from whom or from whose assets the relevant amounts were
 paid, received or recovered or other person entitled to them.
 
	
  
 	
  
 	
  
 
	
 32.22.2
 	
  
 	
 The Security Agent shall make each application as soon as is
 practicable after the relevant moneys are received by, or otherwise become
 available to, it save that (without prejudice to any other provision
 contained in any of the Security Documents) the Security Agent (acting on the
 instructions of the Agent) or any receiver or administrator may credit any
 moneys received by it to a suspense account for so long and in such manner as
 the Security Agent or such receiver or administrator may from time to time
 determine with a view to preserving the rights of the Finance Parties or any
 of them to prove for the whole of their respective claims against the
 Borrowers or any other person liable.
 
	
  
 	
  
 	
  
 
	
 32.22.3
 	
  
 	
 The Security Agent shall obtain a good discharge in respect of the
 amounts expressed to be due to the other Finance Parties as referred to in
 this clause 32.22 by paying such amounts to the Agent for distribution in
 accordance with clause 35 (Payment mechanics).
 
	
  
 	
  
 	
  
 
	
 32.23
 	
  
 	
 Perpetuities
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 The perpetuity period to the extent applicable to this Agreement and
 the other Finance Documents shall be 80 years from the date of this
 Agreement.
 
	
  
 	
  
 	
  
 
	
 32.24 
 	
  
 	
 Powers and duties of the Security Agent as trustee of the security 
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 In its capacity as trustee in relation to the Trust Property and the Security Documents, the
 Security Agent:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 shall, without prejudice to any of the powers, discretions and
 immunities conferred upon trustees by law (and to the extent not inconsistent
 with the provisions of this Agreement or any of the Security Documents), have
 all the same powers and discretions as a natural person acting as the
 beneficial owner of such property and/or as are conferred upon the Security
 Agent by this Agreement and/or any Security Document but so that the Security
 Agent may only exercise such powers and discretions to the extent that it is
 authorised to do so by the provisions of this Agreement;
 
	
  
 	
  
 	
  
 	
  
 
	 	 	(b)
	
shall (subject to clause 32.22 (Order of application)) be entitled (in
 its own name or in the names of nominees) to invest moneys from time to time
 forming part of the Trust Property or otherwise held by it as a consequence
 of any enforcement of the security constituted by any Finance Document which,
 in the reasonable opinion of the Security Agent, it would not be practicable
 to distribute immediately, by placing the same on deposit in the name or
 under the control of the Security Agent as the Security Agent may think fit
 without being under any duty to diversify the same and the Security Agent
 shall not be responsible for any loss due to interest rate or exchange rate
 fluctuations except for any loss arising from the Security Agent’s gross
 negligence or wilful misconduct; 

	 	 	 	 
	 	 	(c)	may, in the conduct of its obligations under and in respect of the
 Security Documents (otherwise than in relation to its right to make any
 declaration, determination or decision), instead of acting personally, employ
 and pay any agent (whether being a lawyer or any other person) to transact or
 concur in transacting any business and to do or concur in doing any acts
 required to be done by the Security Agent (including the receipt and payment
 of money) and on the basis that (i) any such agent engaged in any profession
 or business shall be entitled to be paid all usual professional and other
 charges for business transacted and acts done by him or any partner or
 employee of his or her in connection with such employment and (ii) the
 Security Agent shall not be bound to supervise, or be responsible for any
 loss incurred by reason of any act or

89

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  omission of, any such agent if the
 Security Agent shall have exercised reasonable care in the selection of such
 agent; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (d)
 	
 may place all deeds and other documents relating to the Trust
 Property which are from time to time deposited with it pursuant to the
 Security Documents in any safe deposit, safe or receptacle selected by the
 Security Agent exercising reasonable care or with any firm of solicitors or
 company whose business includes undertaking the safe custody of documents
 selected by the Security Agent exercising reasonable care and may make any
 such arrangements as it thinks fit for allowing Obligors access to, or its
 solicitors or auditors possession of, such documents when necessary or
 convenient and the Security Agent shall not be responsible for any loss
 incurred in connection with any such deposit, access or possession if it has
 exercised reasonable care in the selection of a safe deposit, safe,
 receptacle or firm of solicitors or company (save that it shall take
 reasonable steps to pursue any person who may be liable to it in connection
 with such loss).
 
	
  
 	
  
 	
  
 
	
 32.25
 	
  
 	
 All enforcement action through the Security
 Agent
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 None of the other Finance Parties shall have any independent power to
 enforce any of the Security Documents or to exercise any rights, discretions
 or powers or to grant any consents or releases under or pursuant to any of
 the Security Documents or otherwise have direct recourse to the security
 and/or guarantees constituted by any of the Security Documents except through
 the Security Agent. If any Lender is a party to any Security Document it
 shall promptly upon being requested by the Agent to do so grant power of
 attorney or other sufficient authority to the Security Agent to enable the
 Security Agent to exercise any rights, discretions or powers or to grant any
 consents or releases under such Security Document.
 
	
  
 	
  
 	
  
 
	
 32.26
 	
  
 	
 Co-operation to achieve agreed priorities
 of application
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 The other Finance Parties shall co-operate with each other and with
 the Security Agent and any receiver or administrator under the Security
 Documents in realising the property and assets subject to the Security
 Documents and in ensuring that the net proceeds realised under the Security
 Documents after deduction of the expenses of realisation are applied in
 accordance with clause 32.22 (Order of application).
 
	
  
 	
  
 	
  
 
	
 32.27
 	
  
 	
 Indemnity from Trust Property
 
	
  
 	
  
 	
  
 
	
 32.27.1
 	
  
 	
 In respect of all liabilities, costs or expenses for which the
 Obligors are liable under this Agreement, the Security Agent and each
 Affiliate of the Security Agent and each officer or employee of the Security
 Agent or its Affiliate (each an “Indemnified Person”) shall be entitled to
 be indemnified out of the Trust Property in respect of all liabilities,
 damages, costs, claims, charges or expenses whatsoever properly incurred or suffered
 by such Indemnified Person:
 

	 
	 
	(a)
	in the execution or exercise or bona fide purported execution or
      exercise of the trusts, rights, powers, authorities, discretions and duties
    created or conferred by or pursuant to the Finance Documents;

	 
	 
	 
	 

	 
	 
	(b)
	as a result of any breach by an Obligor of any of its obligations
      under any Finance Document;

	 
	 
	 
	 

	 
	 
	(c)
	in respect of any Environmental Claim made or asserted against an
      Indemnified Person which would not have arisen if the Finance Documents had
      not been executed; and

	 
	 
	 
	 

	 
	 
	(d)
	in respect of any matter or thing done or omitted in any way in
      accordance with the terms of the Finance Documents relating to the Trust
      Property or the provisions of any of the Finance Documents.

	 
	 
	 

	32.27.2
	 
	The rights conferred by this clause 32.27 are without prejudice to
      any right to indemnity by law given to trustees generally and to any
      provision of the Finance Documents entitling the Security Agent or any other
      person to an indemnity in respect of, and/or reimbursement of, any
    liabilities, 

90

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 costs or expenses incurred or suffered by it in connection with
 any of the Finance Documents or the performance of any duties under any of
 the Finance Documents. Nothing contained in this clause 32.27 shall entitle
 the Security Agent or any other person to be indemnified in respect of any
 liabilities, damages, costs, claims, charges or expenses to the extent that
 the same arise from such person’s own gross negligence or wilful misconduct.
 
	
  
 	
  
 	
  
 
	
 32.28
 	
  
 	
 Finance Parties to provide information
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 The other Finance Parties shall provide the Security Agent with such
 written information as it may reasonably require for the purposes of carrying
 out its duties and obligations under the Security Documents and, in
 particular, with such necessary directions in writing so as to enable the
 Security Agent to make the calculations and applications contemplated by
 clause 32.22 (Order of application) above and to apply amounts received
 under, and the proceeds of realisation of, the Security Documents as
 contemplated by the Security Documents, clause 35.5 (Partial payments) and
 clause 32.22 (Order of application).
 
	
  
 	
  
 	
  
 
	
 32.29
 	
  
 	
 Release to facilitate enforcement and
 realisation
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Each Finance Party acknowledges that pursuant to any enforcement action
 by the Security Agent (or a Receiver) carried out on the instructions of the
 Agent it may be desirable for the purpose of such enforcement and/or
 maximising the realisation of the Charged Property being enforced against,
 that any rights or claims of or by the Security Agent (for the benefit of the
 Finance Parties) and/or any Finance Parties against any Obligor and/or any
 Security Interest over any assets of any Obligor (in each case) as contained
 in or created by any Finance Document, other than such rights or claims or
 security being enforced, be released in order to facilitate such enforcement
 action and/or realisation and, notwithstanding any other provision of the
 Finance Documents, each Finance Party hereby irrevocably authorises the
 Security Agent (acting on the instructions of the Agent) to grant any such
 releases to the extent necessary to fully effect such enforcement action and
 realisation including, without limitation, to the extent necessary for such
 purposes to execute release documents in the name of and on behalf of the
 Finance Parties. Where the relevant enforcement is by way of disposal of
 shares in a Borrower, the requisite release shall include releases of all
 claims (including under guarantees) of the Finance Parties and/or the Security
 Agent against such Borrower and of all Security Interests over the assets of
 such Borrower.
 
	
  
 	
  
 	
  
 
	
 32.30
 	
  
 	
 Undertaking to pay
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Each Obligor which is a Party undertakes with the Security Agent on
 behalf of the Finance Parties that it will, on demand by the Security Agent,
 pay to the Security Agent all money from time to time owing, and discharge
 all other obligations from time to time incurred, by it under or in
 connection with the Finance Documents.
 

	32.31
	 
	Additional trustees

	 
	 
	 

	 
	 
	The Security Agent shall have power by notice in writing to the other
      Finance Parties and the Borrowers to appoint any person approved by the
      Majority Lenders (such approval not to be unreasonably withheld or delayed)
      either to act as separate trustee or as co-trustee jointly with the Security
      Agent:

	 
	 
	 
	 

	 
	 
	(a)
	if the Security Agent reasonably considers such appointment to be in
      the best interests of the Finance Parties;

	 
	 
	 
	 

	 
	 
	(b)
	for the purpose of conforming with any legal requirement, restriction
      or condition in any jurisdiction in which any particular act is to be
      performed; or

	 
	 
	 
	 

	 
	 
	(c)
	for the purpose of obtaining a judgment in any jurisdiction or the
      enforcement in any jurisdiction against any person of a judgment already
      obtained,

	 
	 
	 

	 
	 
	and any person so appointed shall (subject to the provisions of this
      Agreement) have such rights (including as to reasonable remuneration),
    powers, duties and obligations as shall be 

91

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 conferred or imposed by the
 instrument of appointment. The Security Agent shall have power to remove any
 person so appointed. At the request of the Security Agent, the other parties
 to this Agreement shall forthwith execute all such documents and do all such
 things as may be required to perfect such appointment or removal and each
 such party irrevocably authorises the Security Agent in its name and on its
 behalf to do the same. Such a person shall accede to this Agreement as a
 Security Agent to the extent necessary to carry out their role on terms
 satisfactory to the Security Agent and (subject always to the provisions of
 this Agreement) have such trusts, powers, authorities, liabilities and
 discretions (not exceeding those conferred on the Security Agent by this
 Agreement and the other Finance Documents) and such duties and obligations as
 shall be conferred or imposed by the instrument of appointment (being no less
 onerous than would have applied to the Security Agent but for the
 appointment). The Security Agent shall not be bound to supervise, or be
 responsible for any loss incurred by reason of any act or omission of, any
 such person if the Security Agent shall have exercised reasonable care in the
 selection of such person.
 
	
  
 	
  
 	
  
 
	
 32.32
 	
  
 	
 Non-recognition of trust
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 It is agreed by all the parties to this Agreement that:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 in relation to any jurisdiction the courts of which would not
 recognise or give effect to the trusts expressed to be constituted by this
 clause 32, the relationship of the Security Agent and the other Finance
 Parties shall be construed as one of principal and agent, but to the extent
 permissible under the laws of such jurisdiction, all the other provisions of
 this Agreement shall have full force and effect between the parties to this
 Agreement; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 the provisions of this clause 32 insofar as they relate to the
 Security Agent in its capacity as trustee for the Finance Parties and the
 relationship between themselves and the Security Agent as their trustee may
 be amended by agreement between the other Finance Parties and the Security
 Agent. The Security Agent may amend all documents necessary to effect the
 alteration of the relationship between the Security Agent and the other
 Finance Parties and each such other party irrevocably authorises the Security
 Agent in its name and on its behalf to execute all documents necessary to
 effect such amendments.
 

	33
	 
	Conduct of
      business by the Finance Parties

	 
	 
	 

	33.1
	 
	Finance Parties tax affairs

	 
	 
	 

	 
	 
	No provision of this Agreement will:

	 
	 
	 
	 

	 
	 
	(a)
	interfere with the right of any Finance Party to arrange its affairs
      (tax or otherwise) in whatever manner it thinks fit;

	 
	 
	 
	 

	 
	 
	(b)
	oblige any Finance Party to investigate or claim any credit, relief,
      remission or repayment available to it or the extent, order and manner of any
      claim; or

	 
	 
	 
	 

	 
	 
	(c)
	oblige any Finance Party to disclose any information relating to its
      affairs (tax or otherwise) or any computations in respect of Tax.

	 
	 
	 

	33.2
	 
	Finance Parties acting together

	 
	 
	 

	 
	 
	Notwithstanding clause 2.2 (Finance Parties’ rights and obligations),
      if the Agent makes a declaration under clause 28.23.1 (Acceleration) the Agent
      shall, in the names of all the Finance Parties, take such action on behalf of
      the Finance Parties and conduct such negotiations with the Borrowers, any
      Obligors or any Subsidiaries of an Obligor and generally administer the
      Facility in accordance with the wishes of the Majority Lenders. All the
      Finance Parties shall be bound by the provisions of this clause and no
      Finance Party shall be entitled to take action independently against any
      Obligor or any of its assets without the prior consent of the Majority
      Lenders.

92

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 This clause shall not override clause 32 (Roles of Agent, Security Agent and
 Arranger) as it applies to the Security Agent.
 
	
  
 	
  
 	
  
 
	
 33.3
 	
  
 	
 Majority Lenders
 
	
  
 	
  
 	
  
 
	
 33.3.1
 	
  
 	
 Where any Finance Document provides for any matter to be determined
 by reference to the opinion of, or to be subject to the consent, approval or
 request of, the Majority Lenders or for any action to be taken on the
 instructions of the Majority Lenders (a “majority decision”), such majority
 decision shall (as between the Lenders) only be regarded as having been
 validly given or issued by the Majority Lenders if all the Lenders shall have
 received prior notice of the matter on which such majority decision is
 required and the relevant majority of Lenders shall have given or issued such
 majority decision. However (as between any Obligor and the Finance Parties)
 the relevant Obligor shall be entitled (and bound) to assume that such notice
 shall have been duly received by each Lender and that the relevant majority shall
 have been obtained to constitute Majority Lenders when notified to this
 effect by the Agent whether or not this is the case.
 
	
  
 	
  
 	
  
 
	
 33.3.2
 	
  
 	
 If, within ten Business Days of the Agent despatching to each Lender
 a notice requesting instructions (or confirmation of instructions) from the
 Lenders or the agreement of the Lenders to any amendment, modification,
 waiver, variation or excuse of performance for the purposes of, or in
 relation to, any of the Finance Documents, the Agent has not received a reply
 specifically giving or confirming or refusing to give or confirm the relevant
 instructions or, as the case may be, approving or refusing to approve the
 proposed amendment, modification, waiver, variation or excuse of performance,
 then (irrespective of whether such Lender responds at a later date) the Agent
 shall treat any Lender which has not so responded as having indicated a
 desire to be bound by the wishes of 662⁄3% of those Lenders (measured in
 terms of the total Commitments of those Lenders) which have so responded.
 
	
  
 	
  
 	
  
 
	
 33.3.3
 	
  
 	
 For the purposes of clause 33.3.2, any Lender which notifies the
 Agent of a wish or intention to abstain on any particular issue shall be
 treated as if it had not responded.
 

	33.4
	 
	Conflicts

	 
	 
	 

	33.4.1
	 
	Each Borrower acknowledges that any Arranger and its parent
undertaking, subsidiary undertakings and fellow subsidiary undertakings
(together an Arranger Group) may be providing debt finance, equity capital or
other services (including financial advisory services) to other persons with
which the Borrowers may have conflicting interests in respect of the Facility
or otherwise. 

	 
	 
	 

	33.4.2
	 
	No member of an Arranger Group shall use confidential information
      gained from any Obligor by virtue of the Facility or its relationships with
      any Obligor in connection with their performance of services for other
      persons. This shall not, however, affect any obligations that any member of
      an Arranger Group has as Agent in respect of the Finance Documents. The
      Borrowers also acknowledge that no member of an Arranger Group has any
      obligation to use or furnish to any Obligor information obtained from other
      persons for their benefit.

	 
	 
	 

	33.4.3
	 
	The terms parent undertaking, subsidiary undertaking and fellow
      subsidiary undertaking when used in this clause have the meaning
      given to them in sections 1161 and 1162 of the Companies Act 2006.

	 
	 
	 

	33.5
	 
	Replacement of a Defaulting Lender

	 
	 
	 

	33.5.1
	 
	The Borrowers may, at any time a Lender has become and continues to be
      a Defaulting Lender, by giving 20 Business Days’ prior written notice to the
      Agent and such Lender:

	 
	 
	 
	 

	 
	 
	(a)
	replace such Lender by requiring such Lender to (and to the extent permitted
      by law such Lender shall) transfer pursuant to clause 30 (Changes to
        the Lenders) all (and not part only) of its rights and obligations
      under this Agreement; or

93

	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 require such Lender to (and to the extent permitted by law such
 Lender shall) transfer pursuant to clause 30 (Changes to the Lenders)
 all (and not part only) of the undrawn Commitment of the Lender,
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 to a Lender or other bank, financial institution, trust, fund or
 other entity (a “Replacement Lender”) selected by the Borrowers,
 and which is acceptable to the Agent (acting reasonably) and (in the case of
 any transfer of any undrawn Commitments), which confirms its willingness to
 assume and does assume all the obligations or all the relevant obligations of
 the transferring Lender (including the assumption of the transferring
 Lender’s participations or unfunded participations (as the case may be) on
 the same basis as the transferring Lender) for a purchase price in cash
 payable at the time of transfer equal to the outstanding principal amount of
 such Lender’s participation in the outstanding Utilisations and all accrued
 interest, Break Costs and other amounts payable in relation thereto under the
 Finance Documents.
 
	
  
 	
  
 	
  
 
	
 33.5.2
 	
  
 	
 Any transfer of rights and obligations of a Defaulting Lender
 pursuant to this clause shall be subject to the following conditions:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 the Borrowers shall have no right to replace the Agent;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 neither the Agent nor the Defaulting Lender shall have any obligation
 to the Borrowers to find a Replacement Lender;
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (c)
 	
 the transfer must take place no later than 20 days after the notice
 referred to in clause 33.5.1; and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (d)
 	
 in no event shall the Defaulting Lender be required to pay or
 surrender to the Replacement Lender any of the fees received by the
 Defaulting Lender pursuant to the Finance Documents.
 

	34
	 
	Sharing among the
      Finance Parties

	 
	 
	 

	34.1
	 
	Payments to Finance Parties

	 
	 
	 

	 
	 
	If a Finance Party (a Recovering Finance Party) receives or
      recovers any amount from an Obligor other than in accordance with clause 35 (Payment
        mechanics) and applies that amount to a payment due under the
      Finance Documents then:

	 
	 
	 
	 

	 
	 
	(a)
	the Recovering Finance Party shall, within three Business Days,
      notify details of the receipt or recovery, to the Agent;

	 
	 
	 
	 

	 
	 
	(b)
	the Agent shall determine whether the receipt or recovery is in
      excess of the amount the Recovering Finance Party would have been paid had
      the receipt or recovery been received or made by the Agent and distributed in
      accordance with clause 35 (Payment mechanics), without taking
      account of any Tax which would be imposed on the Agent in relation to the
      receipt, recovery or distribution; and

	 
	 
	 
	 

	 
	 
	(c)
	the Recovering Finance Party shall, within three Business Days of
demand by the Agent, pay to the Agent an amount (the Sharing Payment) equal
to such receipt or recovery less any amount which the Agent determines may be
retained by the Recovering Finance Party as its share of any payment to be
made, in accordance with clause 35.5 (Partial payments). 

	 
	 
	 

	34.2
	 
	Redistribution of payments

	 
	 
	 

	 
	 
	The Agent shall treat the Sharing Payment as if it had been paid by
      the relevant Obligor and distribute it between the Finance Parties (other
      than the Recovering Finance Party) in accordance with clause 35.5 (Partial
        payments).

94

	
  
 	
  
 	
  
 	
  
 
	
 34.3
 	
  
 	
 Recovering Finance Party’s rights
 
	
  
 	
  
 	
  
 
	
 34.3.1
 	
  
 	
 On a distribution by the Agent under clause 34.2 (Redistribution
 of payments), the Recovering Finance Party will be subrogated to
 the rights of the Finance Parties which have shared in the redistribution.
 
	
  
 	
  
 	
  
 
	
 34.3.2
 	
  
 	
 If and to the extent that the Recovering Finance Party is not able to
 rely on its rights under clause 34.3.1 above, the relevant Obligor shall be
 liable to the Recovering Finance Party for a debt equal to the Sharing
 Payment which is immediately due and payable.
 
	
  
 	
  
 	
  
 
	
 34.4
 	
  
 	
 Reversal of redistribution
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 If any part of the Sharing Payment received or recovered by a
 Recovering Finance Party becomes repayable and is repaid by that Recovering
 Finance Party, then:
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (a)
 	
 each Finance Party which has received a share of the relevant Sharing
 Payment pursuant to clause 34.2 (Redistribution of payments) shall, upon
 request of the Agent, pay to the Agent for account of that Recovering Finance
 Party an amount equal to the appropriate part of its share of the Sharing
 Payment (together with an amount as is necessary to reimburse that Recovering
 Finance Party for its proportion of any interest on the Sharing Payment which
 that Recovering Finance Party is required to pay); and
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (b)
 	
 that Recovering Finance Party’s rights of subrogation in respect of
 any reimbursement shall be cancelled and the relevant Obligor will be liable
 to the reimbursing Lender for the amount so reimbursed.
 

	34.5
	 
	Exceptions

	 
	 
	 

	34.5.1
	 
	This clause 34 shall not apply to the extent that the Recovering
      Finance Party would not, after making any payment pursuant to this clause,
      have a valid and enforceable claim against the relevant Obligor.

	 
	 
	 

	34.5.2
	 
	A Recovering Finance Party is not obliged to share with any other
      Finance Party any amount which the Recovering Finance Party has received or
      recovered as a result of taking legal or arbitration proceedings in
      accordance with the terms of this Agreement, if:

	 
	 
	 
	 

	 
	 
	(a)
	it notified that other Finance Party of the legal or arbitration
      proceedings; and

	 
	 
	 
	 

	 
	 
	(b)
	that other Finance Party had an opportunity to participate in those
      legal or arbitration proceedings but did not do so as soon as reasonably
      practicable having received notice and did not take separate legal or
      arbitration proceedings.

95

SECTION 10 - ADMINISTRATION

	
  

 	
  

 	
  

 
	
 35

 	
  

 	
 Payment mechanics

 
	
  

 	
  

 	
  

 
	
 35.1

 	
  

 	
 Payments to the Agent

 
	
  

 	
  

 	
  

 
	
 35.1.1

 	
  

 	
 On each date on which an Obligor or a Lender is required to make a
 payment under a Finance Document (other than a Hedging Contract), that Obligor or Lender shall make the same
 available to the Agent (unless a contrary indication appears in a Finance
 Document) for value on the due date at the time and in such funds specified
 by the Agent as being customary at the time for settlement of transactions in
 the relevant currency in the place of payment.

 
	
  

 	
  

 	
  

 
	
 35.1.2

 	
  

 	
 Payment shall be made to such account in the principal financial
 centre of the country of that currency (or, in relation to euro, in a
 principal financial centre in a Participating Member State or London) with
 such bank as the Agent specifies.

 
	
  

 	
  

 	
  

 
	
 35.2

 	
  

 	
 Distributions by the Agent

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each payment received by the Agent under the Finance Documents for
 another Party shall, subject to clause 35.3 (Distributions to an Obligor)
 and clause 35.4 (Clawback) be made available by the Agent
 as soon as practicable after receipt to the Party entitled to receive payment
 in accordance with this Agreement (in the case of a Lender, for the account
 of its Facility Office), to such account as that Party may notify to the
 Agent by not less than five Business Days’ notice with a bank in the
 principal financial centre of the country of that currency (or, in relation
 to euro, in the principal financial centre of a Participating Member State or
 London).

 
	
  

 	
  

 	
  

 
	
 35.3

 	
  

 	
 Distributions to an Obligor

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent may (with the consent of the Obligor or in accordance with
 clause 36 (Set-off)) apply any amount received by it for that Obligor
 in or towards payment (on the date and in the currency and funds of receipt)
 of any amount due from that Obligor under the Finance Documents or in or
 towards purchase of any amount of any currency to be so applied.

 
	
  

 	
  

 	
  

 
	
 35.4

 	
  

 	
 Clawback

 
	
  

 	
  

 	
  

 
	
 35.4.1

 	
  

 	
 Where a sum is to be paid to the Agent under the Finance Documents
 for another Party, the Agent is not obliged to pay that sum to that other
 Party (or to enter into or perform any related exchange contract) until it
 has been able to establish to its satisfaction that it has actually received
 that sum.

 
	
  

 	
  

 	
  

 
	
 35.4.2

 	
  

 	
 If the Agent pays an amount to another Party and it proves to be the
 case that the Agent had not actually received that amount, then the Party to
 whom that amount (or the proceeds of any related exchange contract) was paid
 by the Agent shall on demand refund the same to the Agent together with
 interest on that amount from the date of payment to the date of receipt by
 the Agent, calculated by the Agent to reflect its cost of funds.

 
	
  

 	
  

 	
  

 
	
 35.5

 	
  

 	
 Partial payments

 
	
  

 	
  

 	
  

 
	
 35.5.1

 	
  

 	
 If the Agent receives a payment for application against amounts due
 under the Finance Documents that is insufficient to discharge all the amounts
 then due and payable by an Obligor under those Finance Documents, the Agent
 shall apply that payment towards the obligations of that Obligor under those
 Finance Documents in the following order:

 

	
  
 	
  
 	
  
 	
  
 	
  
 
	 	 	 	(a)	first, in or towards payment pro rata
 of any unpaid fees, costs and expenses (ignoring any fees payable under
 clause 11 (Fees)) of the Agent, the Security Agent or the Arrangers
 under those Finance Documents;
	 	 	 	 	 
	
  
 	
  
 	
  
 	(b)	
 secondly, in or towards payment to the Lenders
      pro rata of any amount owing to the Lenders under clause 32.10 (Lenders’
    indemnity to the Agent) including any amount 
 

96

	
  
 	
  
 	
  
 	
  
 	
  
 
	 	 	 	 	
resulting from the
      indemnity to the Security Agent under clause 32.20.1 (Application of certain clauses to
    Security Agent);

	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (c)
 	
 thirdly, in or towards payment to the
 Lenders pro rata of any accrued interest, fee or commission due but unpaid
 under those Finance Documents;
 
	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (d)
 	
 fourthly, in or towards payment to the
 Lenders pro rata of any principal which is due but unpaid under those Finance
 Documents; and
 
	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (e)
 	
 fifthly, in or towards payment pro rata
 of any other sum due but unpaid under (a) the Hedging Contracts and (b) any other Finance Documents.
 

	
  

 	
  

 	
  

 
	
 35.5.2

 	
  

 	
 The Agent shall, if so directed by all the Lenders and the Hedging Providers, vary the order
 set out in paragraphs (b) to (e) of clause 35.5.1.

 
	
  

 	
  

 	
  

 
	
 35.5.3

 	
  

 	
 Clauses 35.5.1 and 35.5.2 above will override any appropriation made
 by an Obligor.

 
	
  

 	
  

 	
  

 
	
 35.6

 	
  

 	
 No set-off by Obligors

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All payments to be made by an Obligor under the Finance Documents
 shall be calculated and be made without (and free and clear of any deduction
 for) set-off or counterclaim.

 
	
  

 	
  

 	
  

 
	
 35.7

 	
  

 	
 Business Days

 
	
  

 	
  

 	
  

 
	
 35.7.1

 	
  

 	
 Any payment which is due to be made on a day that is not a Business
 Day shall be made on the next Business Day in the same calendar month (if
 there is one) or the preceding Business Day (if there is not).

 
	
  

 	
  

 	
  

 
	
 35.7.2

 	
  

 	
 During any extension of the due date for payment of any principal or
 Unpaid Sum under this Agreement interest is payable on the principal or
 Unpaid Sum at the rate payable on the original due date.

 
	
  

 	
  

 	
  

 
	
 35.8

 	
  

 	
 Currency of account

 
	
  

 	
  

 	
  

 
	
 35.8.1

 	
  

 	
 Subject to clauses 35.8.2 to 35.8.3, dollars is the currency of
 account and payment for any sum due from an Obligor under any Finance
 Document.

 
	
  

 	
  

 	
  

 
	
 35.8.2

 	
  

 	
 A repayment of all or part of the Loan or an Unpaid Sum and each
 payment of interest shall be made in dollars on its due date.

 
	
  

 	
  

 	
  

 
	
 35.8.3

 	
  

 	
 Each payment in respect of the amount of any costs, expenses or Taxes
 or other losses shall be made in dollars and, if they were incurred in a currency
 other than dollars, the amount payable under the Finance Documents shall be
 the equivalent in dollars of the relevant amount in such other currency on
 the date on which it was incurred.

 
	
  

 	
  

 	
  

 
	
 35.8.4

 	
  

 	
 All moneys received or held by the Security Agent or by a Receiver
 under a Security Document in a currency other than dollars may be sold for
 dollars and the Obligor which executed that Security Document shall indemnify
 the Security Agent against the full cost in relation to the sale. Neither the
 Security Agent nor such Receiver will have any liability to that Obligor in
 respect of any loss resulting from any fluctuation in exchange rates after
 the sale.

 
	
  

 	
  

 	
  

 
	
 35.9

 	
  

 	
 Disruption to Payment Systems etc.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If either the Agent determines (in its discretion) that a Disruption
 Event has occurred or the Agent is notified by the Borrowers that a Disruption
 Event has occurred:

 

	 
	 
	 
	(a)
	the Agent may, and shall if requested to do so by the Borrowers,
      consult with the Borrowers with a view to agreeing with the Borrowers such
      changes to the operation or administration of the Facility as the Agent may
    deem necessary in the circumstances;

97

	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (b)
 	
 the Agent shall not be obliged to consult with the Borrowers in
 relation to any changes mentioned in paragraph (a) above if, in its opinion,
 it is not practicable to do so in the circumstances and, in any event, shall
 have no obligation to agree to such changes;
 
	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (c)
 	
 the Agent may consult with the Finance Parties in relation to any
 changes mentioned in paragraph (a) above but shall not be obliged to do so
 if, in its opinion, it is not practicable to do so in the circumstances;
 
	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (d)
 	
 any such changes agreed upon by the Agent and the Borrowers shall
 (whether or not it is finally determined that a Disruption Event has
 occurred) be binding upon the Parties as an amendment to (or, as the case may
 be, waiver of) the terms of the Finance Documents notwithstanding the
 provisions of clause 42 (Amendments and grant of waivers);
 
	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (e)
 	
 the Agent shall not be liable for any damages, costs or losses
 whatsoever (including, without limitation for negligence, gross negligence or
 any other category of liability whatsoever but not including any claim based
 on the fraud of the Agent) arising as a result of its taking, or failing to
 take, any actions pursuant to or in connection with this clause 35.9; and
 
	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 (f)
 	
 the Agent shall notify the Finance Parties of all changes agreed
 pursuant to paragraph (d) above.
 

	
  

 	
  

 	
  

 
	
 36

 	
  

 	
 Set-off

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A Finance Party may set off any matured obligation due from an
 Obligor under the Finance Documents (to the extent beneficially owned by that
 Finance Party) against any matured obligation owed by that Finance Party to
 that Obligor, regardless of the place of payment, booking branch or currency
 of either obligation. If the obligations are in different currencies, the
 Finance Party may convert either obligation at a market rate of exchange in
 its usual course of business for the purpose of the set-off.

 
	
  

 	
  

 	
  

 
	
 37

 	
  

 	
 Notices

 
	
  

 	
  

 	
  

 
	
 37.1

 	
  

 	
 Communications in writing

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any communication to be made under or in connection with the Finance
 Documents shall be made in writing and, unless otherwise stated, may be made
 by fax or letter.

 
	
  

 	
  

 	
  

 
	
 37.2

 	
  

 	
 Addresses

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The address, and fax number (and the department or officer, if any,
 for whose attention the communication is to be made) of each Obligor or
 Finance Party for any communication or document to be made or delivered under
 or in connection with the Finance Documents is:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in the case of any Obligor which is a Party, that identified with its
 name in Schedule 1 (The original parties);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 in the case of any Obligor which is not a Party, that identified in
 any Finance Document to which it is a party;

 

	 
	 
	 
	(c)
	in the case of any Original Lender, the Security Agent, the Agent and
      any other original Finance Party that identified with its name in Schedule 1
      (The
    original parties); and

	 
	 
	 
	 
	 

	 
	 
	 
	(d)
	in the case of each other Lender or Finance Party, that notified in
      writing to the Agent on or prior to the date on which it becomes a Party in
      the relevant capacity,

98

	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 or, in each case, any substitute address, fax number, or department
 or officer as an Obligor or Finance Party may notify to the Agent (or the
 Agent may notify to the other Parties, if a change is made by the Agent) by
 not less than five Business Days’ notice.
 

	
  

 	
  

 	
  

 
	
 37.3

 	
  

 	
 Delivery

 
	
  

 	
  

 	
  

 
	
 37.3.1

 	
  

 	
 Any communication or document made or delivered by one person to
 another under or in connection with the Finance Documents will only be
 effective:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 if by way of fax,
 when received in legible form; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if by way of
 letter, when it has been left at the relevant address or five Business Days
 after being deposited in the post postage prepaid in an envelope addressed to
 it at that address,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and, if a
 particular department or officer is specified as part of its address details
 provided under clause 37.2 (Addresses), if addressed to that
 department or officer.

 

	
  

 	
  

 	
  

 
	
 37.3.2

 	
  

 	
 Any communication or document to be made or delivered to the Agent or
 the Security Agent will be effective only when actually received by the Agent
 or the Security Agent and then only if it is expressly marked for the
 attention of the department or officer identified in Schedule 1 (The
 original parties) (or any substitute department or officer as the
 Agent or the Security Agent shall specify for this purpose).

 
	
  

 	
  

 	
  

 
	
 37.3.3

 	
  

 	
 All notices from or to an Obligor shall be sent through the Agent.

 
	
  

 	
  

 	
  

 
	
 37.3.4

 	
  

 	
 Any communication or document made or delivered to the Borrowers in
 accordance with this clause will be deemed to have been made or delivered to
 each of the Obligors.

 
	
  

 	
  

 	
  

 
	
 37.4

 	
  

 	
 Notification of address and fax number

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Promptly upon receipt of notification of an address and fax number or
 change of address or fax number pursuant to clause 37.2 (Addresses) or changing its
 own address or fax number, the Agent shall notify the other Parties.

 
	
  

 	
  

 	
  

 
	
 37.5

 	
  

 	
 Electronic communication (Finance Parties)

 
	
  

 	
  

 	
  

 
	
 37.5.1

 	
  

 	
 Any communication to be made between the Agent and a Lender, any Hedging Provider, or the
 Security Agent under or in connection with the Finance Documents may be made
 by electronic mail or other electronic means, if the Agent and the relevant
 Lender or such Hedging Provider or the Security Agent:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 notify each other of any change to their address or any other such
 information supplied by them.

 

	 
	 
	The Finance Parties hereby confirm that unless and until notified to
      the contrary, communication by electronic mail or other electronic means is
    an accepted form of communication.

	 
	 
	 

	37.5.2
	 
	Any electronic communication made between the Agent, a Hedging Provider and a Lender or
      the Security Agent will be effective only when actually received in readable
      form and in the case of any electronic communication made by a Lender, a Hedging Provider or the
      Security Agent to the Agent only if it is addressed in such a manner as the
      Agent shall specify for this purpose.

99

	
  
 	
  
 	
  
 
	
 37.6
 	
  
 	
 Electronic Communications (Obligors)
 
	
  
 	
  
 	
  
 
	
 37.6.1
 	
  
 	
 Any general communication made between any Finance Party and any
 Obligor, may be made by electronic mail or other electronic means
 (irrespective of any associated risks) if the parties:
 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 notify each other of any change to their address or any other such
 information supplied by them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of the Finance Parties and each Obligor hereby confirm that
 unless and until notified to the contrary, communication by electronic mail
 is an acceptable form of general communication.

 

	
  

 	
  

 	
  

 
	
 37.6.2

 	
  

 	
 Each of the Finance Parties and each Obligor agrees and confirms that
 any communications which involves the giving or receiving of notice (of any
 nature) under this Agreement or relates to the making of requests or demands
 under this Agreement may only be made in accordance with clause 37.3 (Delivery).

 
	
  

 	
  

 	
  

 
	
 37.6.3

 	
  

 	
 Any electronic communication made between any Obligor and any Finance
 Party will be effective only when actually received in readable form and in
 the case of any electronic communication made by an Obligor to any Finance
 Party only if it is addressed in such a manner as that Finance Party shall
 specify for this purpose.

 
	
  

 	
  

 	
  

 
	
 37.7

 	
  

 	
 English language

 
	
  

 	
  

 	
  

 
	
 37.7.1

 	
  

 	
 Any notice given under or in connection with any Finance Document
 shall be in English.

 
	
  

 	
  

 	
  

 
	
 37.7.2

 	
  

 	
 All other documents provided under or in connection with any Finance
 Document shall be:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in English; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if not in English, and if so required by the Agent, accompanied by a
 certified English translation and, in this case, the English translation will
 prevail unless the document is a constitutional, statutory or other official
 document.

 

	
  

 	
  

 	
  

 
	
 38

 	
  

 	
 Calculations and
 certificates

 
	
  

 	
  

 	
  

 
	
 38.1

 	
  

 	
 Accounts

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In any litigation or arbitration proceedings arising out of or in
 connection with a Finance Document, the entries made in the accounts
 maintained by a Finance Party are prima facie evidence of the matters to
 which they relate.

 

	38.2
	 
	Certificates and determinations

	 
	 
	 

	 
	 
	Any certification or determination by the Agent of a rate or amount
      under any Finance Document is in the absence of manifest error, conclusive
      evidence of the matters to which it relates.

	 
	 
	 

	38.3
	 
	Day count convention

	 
	 
	 

	 
	 
	Any interest, commission or fee accruing under a Finance Document
      will accrue from day to day and is calculated on the basis of the actual
      number of days elapsed and a year of 360 days or, in any case where the
      practice in the Interbank Market differs, in accordance with that market
      practice.

100

	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
 39
 	
  
 	
 Partial
 invalidity
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 If, at any time, any provision of the Finance Documents 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 under the law of any other jurisdiction will in any way be affected
 or impaired.
 
	
  
 	
  
 	
  
 
	
 40
 	
  
 	
 Remedies and
 waivers
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 No failure to exercise, nor any delay in exercising, on the part of
 any Finance Party, any right or remedy under the Finance Documents shall
 operate as a waiver, nor shall any single or partial exercise of any right or
 remedy prevent any further or other exercise or the exercise of any other
 right or remedy. The rights and remedies provided in the Finance Documents
 are cumulative and not exclusive of any rights or remedies provided by law.
 
	
  
 	
  
 	
  
 
	
 41
 	
  
 	
 Amendments and
 grant of waivers
 
	
  
 	
  
 	
  
 
	
 41.1
 	
  
 	
 Required consents
 
	
  
 	
  
 	
  
 
	
 41.1.1
 	
  
 	
 Any term of the Finance Documents may be amended or waived, or a
 consent given by the Agent in respect of such term or the Agent may provide
 its opinion with respect to such term, with the consent of the Agent acting
 on the instructions of all of the Lenders unless such Finance Documents
 provides that such amendment or waiver may be made with the consent of the
 Majority Lenders and, if it affects the rights and obligations of the
 Security Agent or the Agent, the consent of the Agent or the Security Agent)
 and any such amendment or waiver agreed or given by the Agent will be binding
 on the other Finance Parties.
 
	
  
 	
  
 	
  
 
	
 41.1.2
 	
  
 	
 The Agent may (or, in the case of the Security Documents, instruct
 the Security Agent to) effect, on behalf of any Finance Party, any amendment
 or waiver permitted by this clause.
 
	
  
 	
  
 	
  
 
	
 41.1.3
 	
  
 	
 Amendments to or waivers in respect of the Hedging Contracts may only be agreed by the relevant Hedging Provider. 
 
	
  
 	
  
 	
  
 
	
 41.1.4
 	
  
 	
 An amendment or waiver which relates to the rights or obligations of
 the Agent, the Security Agent or the Arrangers in their respective capacities
 as such (and not just as a Lender) may not be effected without the consent of
 the Agent, Security Agent or the Arrangers (as the case may be).
 
	
  
 	
  
 	
  
 
	
 41.1.5
 	
  
 	
 Notwithstanding clauses 41.1.1 to 41.1.4 (inclusive), the Agent may
 make technical amendments to the Finance Documents arising out of manifest
 errors on the face of the Finance Documents, where such amendments would not
 prejudice or otherwise be adverse to the interests of any Finance Party
 without any reference or consent of the Finance Parties.
 

	
  

 	
  

 	
  

 
	
 41.2

 	
  

 	
 Releases

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with the approval of the Lenders or as is expressly permitted
 or required by the Finance Documents, the Agent shall not have authority to
 authorise the Security Agent to release:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any Charged Property from the security constituted by any Security
 Document; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any Obligor from any of its guarantee or other obligations under any
 Finance Document.

 

	
  

 	
  

 	
  

 
	
 42

 	
  

 	
 Counterparts

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Finance 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 Finance Document.

 

101

SECTION 11 - GOVERNING LAW AND ENFORCEMENT

	
  

 	
  

 	
  

 	
  

 
	
 43

 	
  

 	
 Governing law 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This Agreement and any
 non-contractual obligations connected with it are governed by English law. 

 
	
  

 	
  

 	
  

 	
  

 
	
 44

 	
  

 	
 Enforcement 

 
	
  

 	
  

 	
  

 	
  

 
	
 44.1

 	
  

 	
 Jurisdiction of
 English courts 

 
	
  

 	
  

 	
  

 	
  

 
	
 44.1.1

 	
  

 	
 The courts of England have exclusive
jurisdiction to settle any dispute arising out of or in connection with this
Agreement or any non-contractual obligations connected with it (including a
dispute regarding the existence, validity or termination of this Agreement)
(a Dispute).

 
	
  

 	
  

 	
  

 	
  

 
	
 44.1.2

 	
  

 	
 The Parties agree that the courts of
 England are the most appropriate and convenient courts to settle Disputes and
 accordingly no Party will argue to the contrary. 

 
	
  

 	
  

 	
  

 	
  

 
	
 44.1.3

 	
  

 	
 This clause 44.1 is for the benefit
 of the Finance Parties only. As a result, no Finance Party shall be prevented
 from taking proceedings relating to a Dispute in any other courts with
 jurisdiction. To the extent allowed by law, the Finance Parties may take
 concurrent proceedings in any number of jurisdictions. 

 
	
  

 	
  

 	
  

 	
  

 
	
 44.2

 	
  

 	
 Service of process 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Without prejudice to any other mode
 of service allowed under any relevant law, each Obligor which is a Party: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 irrevocably appoints the person named
 in Schedule 1 (The original parties)
 as that Obligor’s English process agent as its agent for service of process
 in relation to any proceedings before the English courts in connection with
 any Finance Document; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 agrees that failure by a process
 agent to notify the relevant Obligor of the process will not invalidate the
 proceedings concerned; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 if any person appointed as process
 agent for an Obligor is unable for any reason to act as agent for service of
 process, that Obligor must immediately (and in any event within ten days of
 such event taking place) appoint another agent on terms acceptable to the
 Agent. Failing this, the Agent may appoint another agent for this purpose.

 

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

102

Schedule 1 

The original parties

Borrowers

	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Name:

 	
  

 	
 GAS-eight Ltd.

 
	

 

 	

 

 	

 

 
	
 Jurisdiction of incorporation

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Registration number (or equivalent, if any)

 	
  

 	
 45255

 
	

 

 	

 

 	

 

 
	
 English process agent (if not incorporated in England)

 	
  

 	
 Unisea Maritime
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Registered office

 	
  

 	
 Clarendon House, 2
 Church Street, Hamilton HM11, Bermuda

 
	

 

 	

 

 	

 

 
	
 Address for service of notices

 	
  

 	
 Mr. Henrik
 Bjerregaard, c/o Gaslog Monaco SAM, Gildo Pastor 

 Center, 7, rue du Gabian, MC98000, Monaco

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Name:

 	
  

 	
 GAS-nine Ltd.

 
	

 

 	

 

 	

 

 
	
 Jurisdiction of incorporation

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Registration number (or equivalent, if any)

 	
  

 	
 45502

 
	

 

 	

 

 	

 

 
	
 English process agent (if not incorporated in England)

 	
  

 	
 Unisea Maritime
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Registered office

 	
  

 	
 Clarendon House, 2
 Church Street, Hamilton HM11, Bermuda

 
	

 

 	

 

 	

 

 
	
 Address for service of notices

 	
  

 	
 Mr. Henrik
 Bjerregaard, c/o Gaslog Monaco SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Name:

 	
  

 	
 GAS-ten Ltd.

 
	

 

 	

 

 	

 

 
	
 Jurisdiction of incorporation

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Registration number (or equivalent, if any)

 	
  

 	
 45503

 
	

 

 	

 

 	

 

 
	
 English process agent (if not incorporated in England)

 	
  

 	
 Unisea Maritime
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Registered office

 	
  

 	
 Clarendon House, 2
 Church Street, Hamilton HM11, Bermuda

 
	

 

 	

 

 	

 

 
	
 Address for service of notices

 	
  

 	
 Mr. Henrik
 Bjerregaard, c/o Gaslog Monaco SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
 GasLog (as
Guarantor) 

 
	

 

 	

 

 	

 

 
	
 Name of GasLog

 	
  

 	
 GasLog Ltd.

 
	

 

 	

 

 	

 

 
	
 Jurisdiction of incorporation

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Registration number (or equivalent, if any)

 	
  

 	
 33928

 
	

 

 	

 

 	

 

 
	
 English process agent (if not incorporated in England)

 	
  

 	
 Unisea Maritime
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Registered office

 	
  

 	
 Clarendon House, 2
 Church Street, Hamilton HM11, Bermuda

 
	

 

 	

 

 	

 

 
	
 Address for service of notices

 	
  

 	
 Mr. Henrik
 Bjerregaard, c/o Gaslog Monaco SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 
	

 

 	

 

 	

 

 

103

GasLog
Carriers (as Guarantor)

	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Name of GasLog Carriers

 	
  

 	
 GasLog Carriers
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Jurisdiction of incorporation

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Registration number (or equivalent, if any)

 	
  

 	
 41493

 
	

 

 	

 

 	

 

 
	
 English process agent (if not incorporated in England)

 	
  

 	
 Unisea Maritime
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Registered office

 	
  

 	
 Clarendon House, 2
 Church Street, Hamilton HM11, Bermuda

 
	

 

 	

 

 	

 

 
	
 Address for service of notices

 	
  

 	
 Mr. Henrik
 Bjerregaard, c/o Gaslog Monaco SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
 GasLog
 LNG (as Manager)

 
	

 

 	

 

 	

 

 
	
 Name of GasLog LNG

 	
  

 	
 GasLog LNG Services
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Jurisdiction of incorporation

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Registration number (or equivalent, if any)

 	
  

 	
 35655

 
	

 

 	

 

 	

 

 
	
 English process agent (if not incorporated in England)

 	
  

 	
 Unisea Maritime
 Ltd.

 
	

 

 	

 

 	

 

 
	
 Registered office

 	
  

 	
 Clarendon House, 2
 Church Street, Hamilton HM11, Bermuda

 
	

 

 	

 

 	

 

 
	
 Address for service of notices

 	
  

 	
 Mr. Henrik
 Bjerregaard, c/o Gaslog Monaco SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 
	

 

 	

 

 	

 

 

104

The
Original Lenders

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 DNB
 Bank ASA

 	
  

 	
 Commonwealth
 Bank of Australia

 	
  

 	
 Danish
 Ship Finance A/S

 	
  

 	
 ING
 Bank N.V.

 	
  

 	
 Skandinaviska
 Enskilda Banken AB (publ)

 
	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 
	
 Facility Office, address, fax number and attention details
 for notices and account details for payments

 	
  

 	
 20
 St. Dunstan’s Hill

 London EC3R 8SY

 

 For credit matters:

 Mr Christo Nikolov/Mr

 Alex Ryland

 Fax: +44(0)20 7626 5956

 

 For loan administration matters:

 Mr Mike Rufian

 Fax: +44(0)20 7283 4430

 	
  

 	
 Senator
 House

 85 Queen Victoria Street

 London EC4V 4HA

 

 For credit matters:

 Mr Brian Parker

 Fax: +44(0)20 7710 3953

 

 For loan administration matters:

 Mr Roy Nasse

 Fax: +44(0)20 7710 3939

 	
  

 	
 Sankt
 Annae Plads 3

 1250 Copenhagen C Denmark

 

 For credit matters:

 Mr Thomas Schiltmann/Mrs Lisbeth Navntoft Petersen

 Fax: +45 3333 9666

 

 For loan administration matters:

 Mrs Josefine

 Gry Haslund/ Mrs Mette

 Haue Christensen

 Fax: +45 3333 9666

 	
  

 	
 60
 London Wall

 London EC3M 5TQ

 

 For credit matters:

 Mr Rory Hussey/Ms

 Olga Terentieva

 Fax: +44 20 7767 6987

 

 For loan administration matters:

 Mr Mark Dasalla/

 Ms Bernadette Smailes

 Fax: +44 20 7767 7324

 	
  

 	
 Kungsträdårdsgatan
 8

 SE-106 40 Stockholm

 Sweden

 

 For credit matters:

 Scott Lewallen/Malcolm

 Stonehouse

 Fax: +44(0)

 20 7236 5144

 

 For loan administration

 matters:

 Sherman Altan

 Fax: +46 8 611 0384

 
	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 
	
 Commitment ($)

 	
  

 	
 87,000,000

 	
  

 	
 87,000,000

 	
  

 	
 87,000,000

 	
  

 	
 87,000,000

 	
  

 	
 87,000,000

 
	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 
	
 TOTAL

 	
  

 	
 435,000,000

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 

105

The
Hedging Providers

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 DNB
 Bank ASA

 	
  

 	
 Commonwealth
 Bank of Australia

 	
  

 	
 ING
 Bank N.V.

 	
  

 	
 Skandinaviska
 Enskilda Banken AB (publ)

 
	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 
	
 Facility Office, address, fax number and attention details
 for notices and account details for payments

 	
  

 	
 20
 St. Dunstan’s Hill

 London EC3R 8SY

 

 For credit matters:

 Mr Christo Nikolov/Mr

 Alex Ryland

 Fax: +44(0)20 7626 5956

 

 For loan administration

 matters:

 Mr Mike Rufian

 Fax: +44(0)20 7283 4430

 	
  

 	
 Senator
 House

 85 Queen Victoria Street

 London EC4V 4HA

 

 For credit matters:

 Mr Brian Parker

 Fax: +44(0)20 7710 3953

 

 For loan administration

 matters:

 Mr Roy Nasse

 Fax: +44(0)20 7710 3939

 	
  

 	
 60
 London Wall

 London EC3M 5TQ

 

 For credit matters:

 Mr Rory Hussey/Ms Olga

 Terentieva

 Fax: +44 20 7767 6987

 

 For loan administration

 matters:

 Mr Mark Dasalla/

 Ms Bernadette Smailes

 Fax: +44 20 7767 7324

 	
  

 	
 Kungsträdårdsgatan
 8

 SE-106 40 Stockholm

 Sweden

 

 For credit matters:

 Scott Lewallen/Malcolm

 Stonehouse

 Fax: +44(0) 20 7236 5144

 

 For loan administration

 matters:

 Sherman Altan

 Fax: +46 8 611 0384

 

106

The
Agent

	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 DNB
 Bank ASA, London Branch

 
	

 

 	

 

 	

 

 
	
 Facility Office, address, fax number

 	
  

 	
 20
 St. Dunstan’s Hill

 
	
 and attention details for notices and

 	
  

 	
 London
 EC3R 8HY

 
	
 account details for payments

 	
  

 	
 For
 credit matters:

 
	
  

 	
  

 	
 Fax:
 +44(0)207 626 5956

 
	
  

 	
  

 	
 For
 loan administration matters:

 
	
  

 	
  

 	
 Fax:
 +44(0) 207 283 4430

 
	
  

 	
  

 	
  

 
	
 The Security Agent

 
	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 DNB
 Bank ASA, London Branch

 
	

 

 	

 

 	

 

 
	
 Facility Office, address, fax number

 	
  

 	
 20
 St. Dunstan’s Hill

 
	
 and attention details for notices and

 	
  

 	
 London
 EC3R 8HY

 
	
 account details for payments

 	
  

 	
 For
 credit matters:

 
	
  

 	
  

 	
 Fax:
 +44(0)207 626 5956

 
	
  

 	
  

 	
 For
 loan administration matters:

 
	
  

 	
  

 	
 Fax:
 +44(0) 207 283 4430

 
	
  

 	
  

 	
  

 
	
 The Account Bank

 
	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 DNB
 Bank ASA, London Branch

 
	

 

 	

 

 	

 

 
	
 Facility Office, address, fax number

 	
  

 	
 20
 St. Dunstan’s Hill

 
	
 and attention details for notices and

 	
  

 	
 London
 EC3R 8HY

 
	
 account details for payments

 	
  

 	
 For
 credit matters:

 
	
  

 	
  

 	
 Fax:
 +44(0)207 626 5956

 
	
  

 	
  

 	
 For
 loan administration matters:

 
	
  

 	
  

 	
 Fax:
 +44(0) 207 283 4430

 
	
  

 	
  

 	
  

 
	
 The Bookrunner

 
	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 DNB
 Bank ASA

 
	

 

 	

 

 	

 

 
	
 Facility Office, address, fax number

 	
  

 	
 20
 St. Dunstan’s Hill

 
	
 and attention details for notices and

 	
  

 	
 London
 EC3R 8HY

 
	
 account details for payments

 	
  

 	
 For
 credit matters:

 
	
  

 	
  

 	
 Fax:
 +44(0)207 626 5956

 
	
  

 	
  

 	
 For
 loan administration matters:

 
	
  

 	
  

 	
 Fax:
 +44(0) 207 283 4430

 

107

Schedule 2 

Ship information

Ship
A

	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Builder:

 	
  

 	
 Samsung Heavy
 Industries Co., Ltd.

 
	

 

 	

 

 	

 

 
	
 Builder’s registered office:

 	
  

 	
 11th Floor,
 KIPS Center, 647-9 Yeoksam-Dong, Kangnam-Gu, Seoul, Korea.

 
	

 

 	

 

 	

 

 
	
 Hull Number:

 	
  

 	
 2042

 
	

 

 	

 

 	

 

 
	
 Scheduled delivery date:

 	
  

 	
 ***** 2014

 
	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Date and description of Building Contract:

 	
  

 	
 Shipbuilding
 Contract dated 26 June 2011 as may be amended, supplemented or varied in
 accordance with the terms hereof.

 
	

 

 	

 

 	

 

 
	
 Delivery Price:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Contract Price:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Ship Commitment:

 	
  

 	
 $143,000,000

 
	

 

 	

 

 	

 

 
	
 Flag State:

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Charter description:

 	
  

 	
 Charter dated 11
 May 2011 (comprising a Master Agreement, a Time Charter and a Maiden Voyage
 Charter, each dated 11 May 2011)

 
	

 

 	

 

 	

 

 
	
 Charter Rates:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Charterer:

 	
  

 	
 Shell Tankers
 Singapore (Private) Ltd., a wholly-owned subsidiary of Royal Dutch Shell or
 such other entity as the Lenders may approve in their absolute discretion.

 
	

 

 	

 

 	

 

 
	
 Classification:

 	
  

 	
 Class *A1, *,
 Liquefied gas carrier, ship type 2G (Membrane tank, Maximum pressure 25 kPaG
 and minimum temperature-163oC), SH, SH-DLA, SHCM, RES, *AMS,
 *ACCU, SFA(40), NIBS, *APS, ENVIRO, PORT, POT, CRC, DFD, UWILD.

 
	

 

 	

 

 	

 

 
	
 Classification Society:

 	
  

 	
 American Bureau of
 Shipping.

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
 Ship
 B

 
	

 

 
	
 Builder:

 	
  

 	
 Samsung Heavy
 Industries Co., Ltd.

 
	

 

 	

 

 	

 

 
	
 Builder’s registered office:

 	
  

 	
 11th Floor,
 KIPS Center, 647-9 Yeoksam-Dong, Kangnam-Gu, Seoul, Korea.

 
	

 

 	

 

 	

 

 
	
 Hull Number:

 	
  

 	
 2043

 
	

 

 	

 

 	

 

 
	
 Scheduled delivery date:

 	
  

 	
 ***** 2014

 
	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Date and description of Building Contract:

 	
  

 	
 Shipbuilding
 Contract dated 3 July 2011 as may be amended, supplemented or
 varied in accordance with the terms hereof.

 
	

 

 	

 

 	

 

 
	
 Delivery Price:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Contract Price:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Ship Commitment:

 	
  

 	
 $146,000,000

 
	

 

 	

 

 	

 

 
	
 Flag State:

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 

108

	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Charter Rates:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Charterer:

 	
  

 	
 ***** or
 such other entity as the Lenders may approve in their absolute discretion or
 such other terms and conditions as may be approved.

 
	

 

 	

 

 	

 

 
	
 Classification:

 	
  

 	
 Class *A1, *,
 Liquefied gas carrier, ship type 2G (Membrane tank, Maximum pressure 25 kPaG
 and minimum temperature-163oC), SH, SH-DLA, SHCM, RES, *AMS, *ACCU, SFA(40),
 NIBS, *APS, ENVIRO, PORT, POT, CRC, DFD, UWILD.

 
	

 

 	

 

 	

 

 
	
 Classification Society:

 	
  

 	
 American Bureau of
 Shipping.

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
 Ship
 C

 
	

 

 
	
 Builder:

 	
  

 	
 Samsung Heavy
 Industries Co., Ltd.

 
	

 

 	

 

 	

 

 
	
 Builder’s registered office:

 	
  

 	
 11th Floor,
 KIPS Center, 647-9 Yeoksam-Dong, Kangnam-Gu, Seoul, Korea.

 
	

 

 	

 

 	

 

 
	
 Hull Number:

 	
  

 	
 2044

 
	

 

 	

 

 	

 

 
	
 Scheduled delivery date:

 	
  

 	
 ***** 2015

 
	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
 Date and description of Building Contract:

 	
  

 	
 Shipbuilding
 Contract dated 3 July 2011 as may be amended, supplemented or
 varied in accordance with the terms hereof.

 
	

 

 	

 

 	

 

 
	
 Delivery Price:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Contract Price:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Ship Commitment:

 	
  

 	
 $146,000,000

 
	

 

 	

 

 	

 

 
	
 Flag State:

 	
  

 	
 Bermuda

 
	

 

 	

 

 	

 

 
	
 Charter Rates:

 	
  

 	
 *****

 
	

 

 	

 

 	

 

 
	
 Charterer:

 	
  

 	
 ***** or
 such other entity as the Lenders may approve in their absolute discretion.

 
	

 

 	

 

 	

 

 
	
 Classification:

 	
  

 	
 Class *A1, *,
 Liquefied gas carrier, ship type 2G (Membrane tank, Maximum pressure 25 kPaG
 and minimum temperature-163oC), SH, SH-DLA, SHCM, RES, *AMS, *ACCU, SFA(40),
 NIBS, *APS, ENVIRO, PORT, POT, CRC, DFD, UWILD.

 
	

 

 	

 

 	

 

 
	
 Classification Society:

 	
  

 	
 American Bureau of
 Shipping.

 
	

 

 	

 

 	

 

 

109

Schedule 3 

Conditions precedent

Part
1

Conditions precedent to executing this Agreement 

	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 Original Obligors’
 corporate documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 A copy of the Constitutional
 Documents of each Original Obligor. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A copy of a resolution of the board
 of directors of each Original Obligor (or any committee of such board
 empowered to approve and authorise the following matters): 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 approving the terms of, and the
transactions contemplated by, the Finance Documents, any Building Contract
and the Charter Documents (Relevant Documents) to which it is a party and
resolving that it executes the Relevant Documents;  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 authorising a specified person or
 persons to execute the Relevant Documents on its behalf; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 authorising a specified person or
 persons, on its behalf, to sign and/or despatch all documents and notices
 (including, if relevant, any Utilisation Request) to be signed and/or
 despatched by it under or in connection with the Relevant Documents to which
 it is a party. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 If applicable, a copy of a resolution
 of the board of directors of the relevant company, establishing any committee
 referred to in paragraph (b) above and conferring authority on that
 committee. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 A specimen of the signature of each
 person authorised by the resolution referred to in paragraph (b) above. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 (if a requirement under the
 Constitutional Documents of each Original Obligor or Bermudian law) A copy of
 a resolution signed by all the holders of the issued shares in each Original
 Obligor, approving the terms of, and the transactions contemplated by, the
 Relevant Documents to which such Obligor is a party. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 (if a requirement under the
 Constitutional Documents of each Original Obligor or Bermudian law) A copy of
 a resolution of the board of directors of each corporate shareholder of each
 Original Obligor approving the terms of the resolution referred to in
 paragraph (e) above. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 A certificate of each of the Counter
 Guarantors (signed by a director) confirming that borrowing or guaranteeing
 or securing, as appropriate, the Total Commitments would not cause any
 borrowing, guaranteeing or similar limit binding on any other Original
 Obligor to be exceeded. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 A copy of any power of attorney under
 which any person is to execute any of the Relevant Documents on behalf of any
 Original Obligor. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 A certificate of an authorised
 signatory of the relevant Original Obligor certifying that each copy document
 relating to it specified in this Part of this Schedule is correct, complete
 and in full force and effect as at a date no earlier than the date of this
 Agreement and that any such resolutions or power of attorney have not been
 revoked. 

 

110

	
  

 	
  

 	
  

 
	
 2

 	
 Legal opinions 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 A legal opinion of Norton Rose LLP,
 London addressed to the Arrangers, the Security Agent and the Agent and for
 the benefit of all the Finance Parties on matters of English law,
 substantially in the form approved by the Agent prior to signing this
 Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A legal opinion of the legal advisers
 to the Arrangers, the Security Agent and the Agent in England and also each
 jurisdiction in which an Obligor is incorporated and/or which is or is to be
 the Flag State of a Ship, or in which an Account opened at Utilisation is
 established or which governs any assets which are to be the subject of a
 Security Interest for the benefit of all the Finance Parties substantially in
 the form approved by the Agent prior to signing this Agreement. 

 
	
  

 	
  

 	
  

 
	
 3

 	
 Other documents and
 evidence 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Evidence that any process agent
 referred to in clause 44.2 (Service of
 process) or any equivalent provision of any other Finance Document
 entered into on or before the first Utilisation Date, if not an Original
 Obligor, has accepted its appointment. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A copy of any other authorisation or
 other document, opinion or assurance which the Agent considers to be
 necessary or desirable (if it has notified the Borrowers accordingly) in
 connection with the entry into and performance of the transactions
 contemplated by any Finance Document which is executed on and dated the date
 of the Agreement or for the validity and enforceability of any Finance
 Document. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The Original Financial Statements. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Evidence that the fees, commissions,
 costs and expenses then due from the Borrowers pursuant to clause 11 (Fees) and clause 16 (Costs and expenses) have been paid or
 will be paid by the first Utilisation Date. 

 
	
  

 	
  

 	
  

 
	
 4

 	
 Bank Accounts 

 
	
  

 	
  

 	
  

 
	
  

 	
 Evidence that any Account required to
 be established under clause 25 (Bank
 accounts) has been opened and established, that any Account
 Security in respect of each such Account has been executed and delivered by
 the relevant Account Holder(s) in favour of the Security Agent and that any
 notice required to be given to an Account Bank under that Account Security
 has been given to it and acknowledged by it in the manner required by that
 Account Security and that an amount has been credited to it. 

 
	
  

 	
  

 	
  

 
	
 5

 	
 Hedging Master
 Agreements and Hedging Contract Security 

 
	
  

 	
  

 
	
  

 	
 Evidence that:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the Hedging Master Agreements have
 been executed by the Borrowers and each Hedging Provider; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the Borrowers have executed the
 Hedging Contract Security in favour of the Security Agent; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any notice required to be given to
 each Hedging Provider under the Hedging Contract Security has been given to
 them and acknowledged by them in the manner required by the Hedging Contract
 Security. 

 
	
  

 	
  

 	
  

 
	
 6

 	
  “Know your customer”
 information 

 
	
  

 	
  

 	
  

 
	
  

 	
 Such documentation and information as
 any Finance Party may reasonably request through the Agent to comply with
 “know your customer” or similar identification procedures under all laws and
 regulations applicable to that Finance Party. 

 

111

	
  

 	
  

 
	
 7

 	
 Guarantees and other
 Finance Documents 

 
	
  

 	
  

 
	
  

 	
 The Counter Guarantees and the
 Guarantees duly executed. 

 
	
  

 	
  

 
	
 8

 	
 Share security 

 
	
  

 	
  

 
	
  

 	
 The Share Security in respect of the
 each of the Owners duly executed by its Holding Company together with all
 letters, transfers, certificates and other documents required to be delivered
 under the Share Security. 

 

112

Part 2 

Conditions
precedent to any Utilisation Request

	
  

 	
  

 
	
 1

 	
 Utilisation Request 

 
	
  

 	
  

 
	
  

 	
 A duly completed Utilisation Request
 in the form set out in Schedule 4 (Utilisation
 Request). 

 
	
  

 	
  

 
	
 2

 	
 Subordination 

 
	
  

 	
  

 
	
  

 	
 Evidence that any amounts of the
 Contract Price funded or to be funded by an Affiliate to the Borrowers have
 been or will be subordinated to the amounts owing under the Finance Documents
 in an approved manner. 

 
	
  

 	
  

 
	
 3

 	
 Charter Security 

 
	
  

 	
  

 
	
  

 	
 The Charter Assignment duly executed
 by the relevant Owner. 

 
	
  

 	
  

 
	
 4

 	
 Value of Security 

 
	
  

 	
  

 
	
  

 	
 Valuations obtained (not more than 30
 days before the first Utilisation Date) in accordance with clause 23 (Minimum
 security value) showing that the Security Value of the Ships will not be less
 than the Minimum Value upon the Utilisation Date. 

 
	
  

 	
  

 
	
 5

 	
 Material Adverse
 Effect 

 
	
  

 	
  

 
	
  

 	
 There has been no material adverse
 change in its assets, business or financial condition (or the assets,
 business or consolidated financial condition of any of the Obligors or any
 Group). 

 
	
  

 	
  

 
	
 6

 	
 Delivery Price 

 
	
  

 	
  

 
	
  

 	
 Evidence of the final Delivery Price
 in a form acceptable to the Agent. 

 

113

Part
3

Conditions precedent on Delivery

	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 Corporate documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 A certificate of an authorised
 signatory of the relevant Owner certifying that each copy document relating
 to it specified in Parts 1 and 2 of this Schedule remains correct, complete
 and in full force and effect as at a date no earlier than a date approved for
 this purpose and that any resolutions or power of attorney referred to in
 Parts 1 and 2 of this Schedule in relation to it have not been revoked or
 amended. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A certificate of an authorised
 signatory of each other Obligor which is party to any of the Original
 Security Documents required to be executed at or before Delivery of the Ship
 certifying that each copy document relating to it specified in Parts 1 and 2
 of this Schedule remains correct, complete and in full force and effect as at
 a date no earlier than a date approved for this purpose and that any
 resolutions or power of attorney referred to in Parts 1 and 2 of this
 Schedule in relation to it have not been revoked or amended. 

 
	
  

 	
  

 	
  

 	
  

 
	
 2 

 	
 Security

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 The Mortgage and the Deed of Covenant
 duly executed by the relevant Owner. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Any Manager’s Undertaking required at
 Delivery pursuant to the Finance Documents duly executed by the relevant
 manager. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Duly executed notices of assignment
 and acknowledgements of those notices as required by any of the above
 Security Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
 3

 	
 Delivery and
 registration of Ship 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Evidence that the relevant Ship: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 is legally and beneficially owned by
 the relevant Owner and registered provisionally in the name of the relevant
 Owner through the relevant Registry as a ship under the laws and flag of the
 relevant Flag State; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 is operationally seaworthy and in
 every way fit for service; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 is classed with the relevant
 Classification free of all requirements and recommendations of the relevant
 Classification Society; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 is insured in the manner required by
 the Finance Documents; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 has been delivered, and accepted for
 service, under the Charter; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vi)

 	
 is free of any other charter
 commitment which would require approval under the Finance Documents; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vii)

 	
 any prior registration (other than
 through the relevant Registry in the relevant Flag State) of the relevant
 Ship has been or will (within such period as may be approved) cancelled. 

 
	
  

 	
  

 	
  

 	
  

 
	
 4

 	
 Mortgage
 Registration 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Evidence that the relevant Mortgage
 has been registered with first priority against the Ship through its Registry
 under the laws and flag of its Flag State. 

 

114

	
  

 	
  

 	
  

 
	
 5

 	
 Insurance 

 
	
  

 	
  

 	
  

 
	
  

 	
 In relation to the relevant Ship’s
 Insurances: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 an opinion from insurance consultants
 appointed by the Agent on such Insurances; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 evidence that such Insurances have
 been placed in accordance with clause 22 (Insurance);
 and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 evidence that approved brokers,
 insurers and/or associations have issued or will issue letters of undertaking
 in favour of the Security Agent in an approved form in relation to the
 Insurances. 

 
	
  

 	
  

 	
  

 
	
 6

 	
 ISM and ISPS Code

 
	
  

 	
  

 	
  

 
	
  

 	
 Copies of:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the document of compliance issued in
 accordance with the ISM Code to the person who is the operator of the
 relevant Ship for the purposes of that code; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the safety management certificate in
 respect of such Ship issued in accordance with the ISM Code; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the international ship security
 certificate in respect of such Ship issued under the ISPS Code; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 If so requested by the Agent, any
 other certificates issued under any applicable code required to be observed
 by such Ship or in relation to its operation under any applicable law. 

 
	
  

 	
  

 	
  

 
	
 7

 	
 Value of security 

 
	
  

 	
  

 	
  

 
	
  

 	
 Valuations obtained (not more than 30
 days before the relevant Utilisation Date) in accordance with clause 23 (Minimum security value) showing that the
 Security Value of the Ships will be not less than the Minimum Value upon
 execution of the Security Documents specified in paragraph 2 (Security) of Part 3 of this Schedule. 

 
	
  

 	
  

 	
  

 
	
 8

 	
 Construction matters
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Evidence that any authorisations
 required from any government entity for the export of the Ship by the
 relevant Builder have been obtained or that no such authorisations are
 required. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Evidence that the Contract Price of
 the relevant Ship (as adjusted in accordance with its Building Contract) will
 have been paid upon the relevant Utilisation being made (with the relevant
 Owner having provided its equity to the Agent prior to the Utilisation Date)
 and that the Builder will not have any lien or other right to detain the ship
 on its Delivery. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The original or a copy, certified by
 an approved person to be a true and complete copy, of the builder’s
 certificate and any bill of sale conveying title to the relevant Ship to the
 relevant Owner and the protocol of delivery and acceptance, commercial
 invoice and any other delivery documentation required under the relevant
 Building Contract. 

 
	
  

 	
  

 	
  

 
	
 9

 	
 Fees and expenses 

 
	
  

 	
  

 	
  

 
	
  

 	
 Evidence that the fees, commissions,
 costs and expenses that are due from the Borrowers pursuant to clause 11 (Fees) and clause 16 (Costs and expenses) have been paid or
 will be paid by the relevant Utilisation Date. 

 

115

	
  

 	
  

 	
  

 	
  

 
	
 10

 	
 Survey report 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (if required by the Agent) a survey
 report from approved surveyors obtained not more than 10 days before the
 relevant Utilisation Date evidencing that the relevant Ship is seaworthy and
 capable of safe operation. 

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
 Environmental
 matters 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (Promptly as of Delivery) Copies of
 the relevant Ship’s certificate of financial responsibility and vessel
 response plan required under United States law and evidence of their approval
 by the appropriate United States government entity and (if requested by the
 Agent) an environmental report in respect of the relevant Ship from an
 approved person. 

 
	
  

 	
  

 	
  

 	
  

 
	
 12

 	
 Consents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Evidence that any consents required
 in connection with the delivery of the relevant Ship, the registration of
 title to the relevant Ship, the registration of the Mortgage over the
 relevant Ship and the assignment of the Ship’s Charter have been obtained. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13

 	
 Management Agreement
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Where a manager has been approved in
 accordance with clause 20.3 (Manager),
 a copy, certified by an approved person to be a true and complete copy, of
 the agreement between the relevant Owner and such Manager, relating to the
 appointment of each Manager and the management services to be provided by it
 to the relevant Owner in respect of the relevant Ship. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14

 	
 Underlying documents
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A copy, certified by an approved
 person to be a true and complete copy, of: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 each of the Charter Documents; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 the Quiet Enjoyment Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 15

 	
 Legal opinions 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 A legal opinion of Norton Rose LLP,
 London addressed to the Arrangers, the Security Agent and the Agent and for
 the benefit of all the Finance Parties on matters of English law, substantially
 in the form approved by the Agent prior to Delivery. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 (If required by the Agent) a legal
 opinion of the legal advisers to the Arrangers, the Security Agent and the
 Agent in Korea and also each jurisdiction in which an Obligor is incorporated
 and/or which is or is to be the Flag State of the Ship, or which governs any
 assets which are to be the subject of a Security Interest for the benefit of
 all the Finance Parties substantially in the form approved by the Agent prior
 to Delivery. 

 

116

Schedule 4 

Utilisation Request

	
  

 	
  

 
	
 From:

 	
 GAS-eight
 Ltd., GAS-nine Ltd. and GAS-ten Ltd. 

 
	
 To:

 	
 DNB
 Bank ASA 

 
	
 Dated:

 	
 [●]

 

Dear Sirs

 $435,000,000

Facility Agreement dated [●] 2011 (the “Agreement”) 

	
  

 	
  

 	
  

 
	
 1

 	
 We refer to the Agreement. This is a
 Utilisation Request. Terms defined in the Agreement have the same meaning in
 this Utilisation Request unless given a different meaning in this Utilisation
 Request. 

 
	
  

 	
  

 	
  

 
	
 2

 	
 We wish to borrow an Advance on the
 following terms: 

 
	
  

 	
  

 	
  

 
	
  

 	
 Proposed Utilisation Date:

 

 Amount:

 	
 [●]
 (or, if that is not a Business Day, the next Business Day) 

 $[143,000,000][146,000,000] 

 [Note: the maximum amount to be advanced is 70% of the Security Value]

 
	
  

 	
  

 	
  

 
	
 3

 	
 We confirm that each condition
 specified in clause 4.5 (Further
 conditions precedent) is satisfied on the date of this Utilisation
 Request. 

 
	
  

 	
  

 	
  

 
	
 4

 	
 The purpose of this Advance is [specify purpose complying with clause 3 of the
 Agreement] and its proceeds
 should be credited to [●]
 [specify account].

 
	
  

 	
  

 	
  

 
	
 5

 	
 We request that the first Interest
 Period for the Loan be [●] months. 

 
	
  

 	
  

 	
  

 
	
 6

 	
 This Utilisation Request is
 irrevocable. 

 

	
  

 	
  

 	
  

 
	
  

 	
 Yours faithfully

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 authorised
 signatory for

 	
  

 
	
  

 	
 GAS-eight
 Ltd.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 authorised
 signatory for

 	
  

 
	
  

 	
 GAS-nine
 Ltd.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 authorised
 signatory for

 	
  

 
	
  

 	
 GAS-ten
 Ltd.

 	
  

 

117

Schedule 5 

Selection Notice

	
  

 	
  

 
	
 From:

 	
 GAS-eight
 Ltd., GAS-nine Ltd. and GAS-ten Ltd. 

 
	
 To:

 	
 DNB
 Bank ASA 

 
	
 Dated:

 	
 [●]
 

 

Dear Sirs 

$435,000,000

Facility
Agreement dated [●] 2011 (the “Agreement”)

	
  

 	
  

 
	
 1

 	
 We refer to the Agreement. This is a
 Selection Notice. Terms defined in the Agreement have the same meaning in
 this Selection Notice unless given a different meaning in this Selection
 Notice. 

 
	
  

 	
  

 
	
 2

 	
 We request that the next Interest
 Period for the Loan be [●] months. 

 
	
  

 	
  

 
	
 3

 	
 This Selection Notice is irrevocable.
 

 

	
  

 	
  

 	
  

 
	
  

 	
 Yours faithfully

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 authorised
 signatory for

 	
  

 
	
  

 	
 GAS-eight
 Ltd.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 authorised
 signatory for

 	
  

 
	
  

 	
 GAS-nine
 Ltd.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 authorised
 signatory for

 	
  

 
	
  

 	
 GAS-ten
 Ltd.

 	
  

 

118

Schedule 6 

Mandatory Cost Formulae

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 The Mandatory Cost is an addition to
 the interest rate to compensate Lenders for the cost of compliance with (a)
 the requirements of the Bank of England and/or the Financial Services
 Authority (or, in either case, any other authority which replaces all or any
 of its functions) or (b) the requirements of the European Central Bank. 

 
	
  

 	
  

 	
  

 
	
 2

 	
 On the first day of each Interest
Period (or as soon as possible thereafter) the Agent shall calculate, as a
percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in
accordance with the paragraphs set out below. The Mandatory Cost will be
calculated by the Agent as a weighted average of the Lenders’ Additional Cost
Rates (weighted in proportion to the percentage participation of each Lender
in the relevant Loan) and will be expressed as a percentage rate per annum.  

 
	
  

 	
  

 	
  

 
	
 3

 	
 The Additional Cost Rate for any
 Lender lending from a Facility Office in a Participating Member State will be
 the percentage notified by that Lender to the Agent. This percentage will be
 certified by that Lender in its notice to the Agent to be its reasonable
 determination of the cost (expressed as a percentage of that Lender’s
 participation in all Loans made from that Facility Office) of complying with
 the minimum reserve requirements of the European Central Bank in respect of
 loans made from that Facility Office. 

 
	
  

 	
  

 	
  

 
	
 4

 	
 The Additional Cost Rate for any
 Lender lending from a Facility Office in the United Kingdom will be
 calculated by the Agent as follows: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in relation to a sterling Loan: 

 
	
  

 	
  

 	
 AB
 + C(B
 – D) + E x 0.01

 	
  per
 cent. per annum

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 100 – (A + C)

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in relation to a Loan in any currency
 other than sterling: 

 
	
  

 	
  

 	
 E
 x 0.01

 	
  per
 cent. per annum.

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 300

 
	
  

 	
  

 	
  

 
	
  

 	
 Where: 

 
	
  

 	
  

 	
  

 
	
 A.

 	
 is the percentage of Eligible
 Liabilities (assuming these to be in excess of any stated minimum) which that
 Lender is from time to time required to maintain as an interest free cash
 ratio deposit with the Bank of England to comply with cash ratio
 requirements. 

 
	
  

 	
  

 	
  

 
	
 B.

 	
 is the percentage rate of interest
 (excluding the Margin and the Mandatory Cost) and, if the Loan is an Unpaid
 Sum, the additional rate of interest specified in clause 8.3.1 (Default interest) payable for the
 relevant Interest Period on the Loan. 

 
	
  

 	
  

 	
  

 
	
 C.

 	
 is the percentage (if any) of
 Eligible Liabilities which that Lender is required from time to time to
 maintain as interest bearing Special Deposits with the Bank of England. 

 
	
  

 	
  

 	
  

 
	
 D.

 	
 is the percentage rate per annum
 payable by the Bank of England to the Agent on interest bearing Special
 Deposits. 

 
	
  

 	
  

 	
  

 
	
 E.

 	
 is designed to compensate Lenders for
 amounts payable under the Fees Rules and is calculated by the Agent as being
 the average of the most recent rates of charge supplied by the Reference
 Banks to the Agent pursuant to paragraph 7 below and expressed in pounds per
 £1,000,000. 

 
	
  

 	
  

 	
  

 
	
 5

 	
 For the purposes of this Schedule: 

 

119

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 “Eligible Liabilities” and “Special
Deposits” have the meanings given to them from time to time under or pursuant
to the Bank of England Act 1998 or (as may be appropriate) by the Bank of
England;  

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 “Fees Rules” means the rules on
periodic fees contained in the FSA Supervision Manual or such other law or
regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits;  

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 “Fee Tariffs” means the fee tariffs
specified in the Fees Rules under activity group A.1 Deposit acceptors
(ignoring any minimum fee or zero rated fee required pursuant to the Fees
Rules but taking into account any applicable discount rate); and  

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 “Tariff Base” has the meaning given
to it in, and will be calculated in accordance with, the Fees Rules.  

 
	
  

 	
  

 	
  

 
	
 6

 	
 In application of the above formulae,
 A, B, C and D will be included in the formulae as percentages (i.e., five per
 cent. will be included in the formula as five and not as 0.05). A negative
 result obtained by subtracting D from B shall be taken as zero. The resulting
 figures shall be rounded to four decimal places. 

 
	
  

 	
  

 	
  

 
	
 7

 	
 If requested by the Agent, each
 Reference Bank shall, as soon as practicable after publication by the
 Financial Services Authority, supply to the Agent, the rate of charge payable
 by that Reference Bank to the Financial Services Authority pursuant to the
 Fees Rules in respect of the relevant financial year of the Financial
 Services Authority (calculated for this purpose by that Reference Bank as
 being the average of the Fee Tariffs applicable to that Reference Bank for
 that financial year) and expressed in pounds per £1,000,000 of the Tariff
 Base of that Reference Bank. 

 
	
  

 	
  

 	
  

 
	
 8

 	
 Each Lender shall supply any
 information required by the Agent for the purpose of calculating its
 Additional Cost Rate. In particular, but without limitation, each Lender
 shall supply the following information on or prior to the date on which it
 becomes a Lender: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the jurisdiction of its Facility
 Office; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any other information that the Agent
 may reasonably require for such purpose. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Each Lender shall promptly notify the
 Agent of any change to the information provided by it pursuant to this
 paragraph. 

 
	
  

 	
  

 	
  

 
	
 9

 	
 The percentages of each Lender for
 the purpose of A and C above and the rates of charge of each Reference Bank
 for the purpose of E above shall be determined by the Agent based upon the
 information supplied to it pursuant to paragraphs 7 and 8 above and on the
 assumption that, unless a Lender notifies the Agent to the contrary, each
 Lender’s obligations in relation to cash ratio deposits and Special Deposits
 are the same as those of a typical bank from its jurisdiction of
 incorporation with a Facility Office in the same jurisdiction as its Facility
 Office. 

 
	
  

 	
  

 	
  

 
	
 10

 	
 The Agent shall have no liability to
 any person if such determination results in an Additional Cost Rate which over
 or under compensates any Lender and shall be entitled to assume that the
 information provided by any Lender or Reference Bank pursuant to paragraphs
 3, 7 and 8 above is true and correct in all respects. 

 
	
  

 	
  

 	
  

 
	
 11

 	
 The Agent shall distribute the
 additional amounts received as a result of the Mandatory Cost to the Lenders
 on the basis of the Additional Cost Rate for each Lender based on the
 information provided by each Lender and each Reference Bank pursuant to
 paragraphs 3, 7 and 8 above. 

 
	
  

 	
  

 	
  

 
	
 12

 	
 Any determination by the Agent
 pursuant to this Schedule in relation to a formula, the Mandatory Cost, an
 Additional Cost Rate or any amount payable to a Lender shall, in the absence
 of manifest error, be conclusive and binding on all Parties. 

 

120

	
  

 	
  

 
	
 13

 	
 The Agent may from time to time,
 after consultation with the Borrowers and the Lenders, determine and notify
 to all Parties any amendments which are required to be made to this Schedule
 in order to comply with any change in law, regulation or any requirements from
 time to time imposed by the Bank of England, the Financial Services Authority
 or the European Central Bank (or, in any case, any other authority which
 replaces all or any of its functions) and any such determination shall, in
 the absence of manifest error, be conclusive and binding on all Parties. 

 

121

Schedule 7

Form of Transfer Certificate

	
  

 	
  

 
	
 To:

 	
 [●]
 as Agent 

 
	
  

 	
  

 
	
 From:

 	
 [The Existing Lender] (the Existing Lender) and [The New
 Lender] (the New Lender)

 

Dated: 

$435,000,000
Facility Agreement dated [●] 2011 (the “Agreement”)

	
  

 	
  

 	
  

 
	
 1

 	
 We refer to the Agreement. This is a
 Transfer Certificate. Terms defined in the Agreement have the same meaning in
 this Transfer Certificate unless given a different meaning in this Transfer
 Certificate. 

 
	
  

 	
  

 	
  

 
	
 2

 	
 We refer to clause 30.5 (Procedure for transfer): 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 The Existing Lender and the New
 Lender agree to the Existing Lender assigning to the New Lender all or part
 of the Existing Lender’s Commitment rights and assuming the Existing Lender’s
 obligations referred to in the Schedule in accordance with clause 30.5 (Procedure for transfer) and the Existing
 Lender assigns and agrees to assign such rights to the New Lender with effect
 from the Transfer Date]

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 The proposed Transfer Date is [●].

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The Facility Office and address, fax
 number and attention details for notices of the New Lender for the purposes
 of clause 37.2 (Addresses) are
 set out in the Schedule.

 
	
  

 	
  

 	
  

 
	
 3

 	
 The New Lender expressly acknowledges
 the limitations on the Existing Lender’s obligations set out in clause
 30.4.3. 

 
	
  

 	
  

 	
  

 
	
 4

 	
 This Transfer Certificate 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 this Transfer
 Certificate. 

 
	
  

 	
  

 	
  

 
	
 5

 	
 This Transfer Certificate and any
 non-contractual obligations connected with it are governed by English law. 

 

122

The Schedule 

Commitment/rights
to be assigned and obligations to be assumed

[insert relevant details]

Facility Office address, fax number 

and attention details for notices and account details for payments

[insert relevant details]

	
  

 	
  

 
	
 [Existing Lender]

 	
 [New Lender]

 
	
 By:

 	
 By:

 

This Transfer Certificate is accepted by the Agent and the
Transfer Date is confirmed to be as stated above. 

[Agent]

By: 

123

SIGNATURES

	
  

 	
  

 
	
 THE BORROWERS

 
	
  

 
	
 GAS-eight Ltd.

 
	
  

 
	
 By:

 	

 
	
  

 
	
 GAS-nine Ltd.

 
	
  

 
	
 By:

 	

 
	
  

 
	
 GAS-ten Ltd.

 
	
  

 
	
 By:

 	

 
	
  

 
	
 THE ARRANGERS

 
	
  

 
	
 DNB BANK ASA

 
	
  

 
	
 By:

 
	
  

 
	
 COMMONWEALTH
 BANK OF AUSTRALIA

 
	
  

 
	
 By:

 
	
  

 
	
 DANISH SHIP
 FINANCE A/S

 
	
  

 
	
 By:

 
	
  

 
	
 ING BANK N.V.

 
	
  

 
	
 By:

 
	
  

 
	
 SKANDINAVlSKA
 ENSKILDA BANKEN AB (publ)

 
	
  

 
	
 By:

 
	
  

 
	
 THE AGENT 

 
	
  

 
	
 DNB BANK ASA 

 
	
  

 
	
 By:

 
	
  

 
	
 THE SECURITY AGENT

 
	
  

 
	
 DNB BANK ASA

 
	
  

 
	
 By:

 

124

SIGNATURES

	
  

 	
  

 
	
 THE BORROWERS

 
	
  

 
	
 GAS-eight Ltd.

 
	
  

 
	
 By:

 
	
  

 
	
 GAS-nine Ltd.

 
	
  

 
	
 By:

 
	
  

 
	
 GAS-ten Ltd.

 
	
  

 
	
 By:

 
	
  

 
	
 THE ARRANGERS

 
	
  

 
	
 DNB BANK ASA

 
	
  

 
	
 By:

 	

 
	
  

 
	
 COMMONWEALTH
 BANK OF AUSTRALIA

 
	
  

 
	
 By:

 	

 
	
  

 
	
 DANISH SHIP
 FINANCE A/S

 
	
  

 
	
 By:

 	

 
	
  

 
	
 ING BANK N.V.

 
	
  

 
	
 By:

 	

 
	
  

 
	
 SKANDINAVlSKA
 ENSKILDA BANKEN AB (publ)

 
	
  

 
	
 By:

 	

 
	
  

 
	
 THE AGENT 

 
	
  

 
	
 DNB BANK ASA 

 
	
  

 
	
 By:

 	

 
	
  

 
	
 THE SECURITY AGENT

 
	
  

 
	
 DNB BANK ASA

 
	
  

 
	
 By:

 	

 

124

	
  

 	
  

 
	
 THE LENDERS

 
	
  

 
	
 DNB BANK ASA 

 
	
  

 
	
 By:

 	

 
	
  

 
	
 COMMONWEALTH
 BANK OF AUSTRALIA

 
	
  

 
	
 By:

 	

 
	
  

 
	
 DANISH SHIP
 FINANCE A/S

 
	
  

 
	
 By:

 	

 
	
  

 
	
 ING BANK N.V.

 
	
  

 
	
 By:

 	

 
	
  

 
	
 SKANDINAVISKA
 ENSKILDA BANKEN AB (publ)

 
	
  

 
	
 By:

 	

 
	
  

 
	
 HEDGING
 PROVIDERS

 
	
  

 
	
 DNB BANK ASA

 
	
  

 
	
 By:

 	

 
	
  

 
	
 COMMONWEALTH
 BANK OF AUSTRALIA

 
	
  

 
	
 By:

 	
  

 
	
  

 
	
 ING BANK N.V.

 
	
  

 
	
 By:

 	

 
	
  

 
	
 SKANDINAVISKA
 ENSKILDA BANKEN AB (publ) 

 
	
  

 
	
 By:

 	

 
	
  

 
	
 THE BOOKRUNNER

 
	
  

 
	
 DNB BANK ASA

 
	
  

 
	
 By:

 	

 

125

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