Document:

exv4w1

Exhibit 4.1

SECOND SUPPLEMENTAL INDENTURE

     SECOND SUPPLEMENTAL INDENTURE (the “Supplemental Indenture”) dated as of September 25, 2009,
among GeoEye, Inc. (f/k/a ORBIMAGE Holdings, Inc.), a corporation organized under the laws of the
State of Delaware (the “Issuer”), ORBIMAGE Inc., a corporation organized under the laws of the
State of Delaware (the “Guarantor”) and The Bank of New York Mellon (f/k/a The Bank of New York), a
New York banking corporation, as trustee under the indenture referred to below (the “Trustee”).
Capitalized terms used in this Supplemental Indenture and not otherwise defined herein shall have
the meanings assigned to such terms in the Indenture.

WITNESSETH:

     WHEREAS the Issuer and the Trustee have heretofore executed an Indenture, as previously
amended by the supplemental indenture dated as of July 7, 2005 among ORBIMAGE, the Company and the
Trustee (as previously amended, the “Indenture”) dated as of June 29, 2005, providing for the
issuance of the Issuer’s Senior Secured Floating Rate Notes due 2012 (the “Notes”), initially in
the aggregate principal amount of $250,000,000;

     WHEREAS, Section 9.02 of the Indenture provides that the Issuer and the Trustee may, with the
consent of the Holders of at least a majority in principal amount of the Notes then outstanding
(the “Requisite Consents”), amend or supplement the Indenture and/or the Notes;

     WHEREAS, the Issuer has offered to purchase for cash any and all of the outstanding Notes upon
the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation
Statement, dated September 11, 2009 (as the same may be amended, supplemented or modified from time
to time, the “Statement”), and in the related Letter of Transmittal and Consent (as the same may be
amended, supplemented or modified from time to time, together with the Statement, the “Offer”);

     WHEREAS, the Offer is conditioned upon, among other things, the proposed amendments (the
“Proposed Amendments”) to the Indenture set forth herein having been approved by at least a
majority in aggregate principal amount of the Notes outstanding (and a supplemental indenture in
respect thereof having been executed and delivered), with such Proposed Amendments becoming
operative with respect to the Indenture upon the acceptance for payment and payment of Notes
validly tendered pursuant to the Offer (the “Settlement”);

     WHEREAS, the Issuer has received and delivered to the Trustee the Requisite Consents to effect
the Proposed Amendments under the Indenture;

     WHEREAS, each of the Issuer and the Guarantor have been authorized by a resolution of their
respective Boards of Directors to enter into this Supplemental Indenture; and

     WHEREAS, all other acts and proceedings required by law, by the Indenture and the amended and
restated certificate of incorporation and amended restated by-laws of the Issuer and the applicable
formation documents of the Guarantor to make this Supplemental Indenture a valid and binding
agreement of the Issuer and the Guarantor for the purposes expressed herein, in accordance with its
terms, have been duly done and performed.

 

 

     NOW THEREFORE, in consideration of the premises and the covenants and agreements contained
herein, and for other good and valuable consideration the receipt of which is hereby acknowledged,
and for the equal and proportionate benefit of the Holders of the Notes, the Issuer, the Guarantor
and the Trustee hereby agree as follows:

Article I.

AMENDMENTS TO THE INDENTURE AND THE NOTES

          1.1 Amendment of Section 1.01.

          Section 1.01 of the Indenture is amended by deleting from such Section those defined terms and
section references that, by virtue of the amendments effected by this Supplemental Indenture, are
no longer used in the Indenture or the Notes as amended hereby.

          1.2 Amendment of Section 3.05. Section 3.05 of the Indenture, is hereby deleted in
its entirety and is replaced with the following: “[intentionally omitted]”.

          1.3 Amendment of Sections 4.02 through 4.08. Sections 4.02 through 4.08 of the
Indenture, inclusive, are hereby deleted in their entirety and each such Section is replaced with
the following: “[intentionally omitted]”.

          1.4 Amendment of Section 4.11. Section 4.11 of the Indenture is hereby deleted in its
entirety and is replaced with the following: “[intentionally omitted]”.

          1.5 Amendment of Sections 4.14 and 4.15. Sections 4.14 and 4.15 of the Indenture,
inclusive, are hereby deleted in their entirety and each such Section replaced with the following:
“[intentionally omitted]”.

          1.6 Amendment of Sections 4.17 and 4.18. Sections 4.17 and 4.18 of the Indenture,
inclusive, are hereby deleted in their entirety and each such Section is replaced with the
following: “[intentionally omitted]”.

          1.7 Amendment of Section 5.01. Section 5.01 of the Indenture is hereby amended by
deleting clause (iv) in its entirety and inserting “[intentionally omitted]” in lieu thereof.

          1.8 Amendment of Section 6.01.

               (a) Section 6.01 of the Indenture is amended by deleting clauses (d) and (e) in their entirety
and inserting “[intentionally omitted]” in lieu thereof.

               (b) Section 6.01 of the Indenture is further amended by deleting all references to
“Subsidiary” from clauses (f) and (g).

          1.9 Amendment of Section 9.07. Section 9.07 of the Indenture is hereby deleted in its
entirety and is replaced with the following: “[intentionally omitted]”.

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Article II.

EFFECTIVENESS

          2.1 Effectiveness of this Supplemental Indenture. Upon the execution of this
Supplemental Indenture by the Issuer, the Guarantor and the Trustee, the Indenture shall be amended
and supplemented in accordance herewith, and this Supplemental Indenture shall form a part of the
Indenture for all purposes and each Holder shall be bound thereby; provided,
however, that the provisions of the Indenture referred to in Article I above (such
provisions being referred to as the “Amended Provisions”) will remain in effect in the form they
existed prior to the execution of this Supplemental Indenture, and the Amended Provisions shall
become operative upon the Settlement. The Issuer shall give the Trustee prompt written notice of
the occurrence of the Settlement.

Article III.

MISCELLANEOUS

          3.1 Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as
expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental
Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore
or hereafter authenticated and delivered shall be bound hereby.

          3.2 Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          3.3 Trustee Makes No Representation. The recitals contained herein are made by the
Issuer and the Guarantor only and not by the Trustee. The Trustee makes no representation as to
the validity or sufficiency of this Supplemental Indenture.

          3.4 Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

          3.5 Effect of Headings. The Section headings herein are for convenience only and
shall not effect the construction thereof.

          3.6 Trust Indenture Act Controls. If and to the extent that any provision of this
Supplemental Indenture limits, qualifies or conflicts with the duties imposed by, or with another
provision (an “incorporated provision”) included in this Supplemental Indenture by operation of
Section 310 to 318 of the TIA, inclusive, such imposed duties or incorporated provision shall
control.

3

 

     IN WITNESS WHEREOF, the parties have caused this Supplemental Indenture to be duly executed as
of the date first written above.

	 	 	 	 	 
	 	GEOEYE, INC.

 	 
	 	By:  	/s/ William L. Warren
 	 
	 	 	Name:  	William L. Warren 	 
	 	 	Title:  	Senior Vice President, General Counsel and
Secretary 	 
	 
	 	ORBIMAGE INC.

 	 
	 	By:  	/s/ William L. Warren
 	 
	 	 	Name:  	William L. Warren 	 
	 	 	Title:  	Senior Vice President, General Counsel and
Secretary 	 
	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	/s/ Scott I. Klein
 	 
	 	 	Name:  	Scott I. Klein 	 
	 	 	Title:  	Vice PresidentExhibit 4.9

Exhibit 4.9

DATED JUNE 12 2009

TEEKAY CORPORATION

as Vendor

and

TEEKAY TANKERS LTD.

as Purchaser

PURCHASE AGREEMENT

relating to

the sale and purchase of the entire ownership intereststs in

ASHKINI SPIRIT L.L.C.

(formerly INGEBORG SHIPPING L.L.C)

 

 

 

Contents

	 	 	 	 	 	 	 
	Clause	 	Name	 	Page	 
	 	 	 
	 	 	 	 
	1	 	Definitions and Interpretation
	 	 	3	 
	 	 	 
	 	 	 	 
	2	 	Agreement For Sale
	 	 	8	 
	 	 	 
	 	 	 	 
	3	 	Consideration
	 	 	8	 
	 	 	 
	 	 	 	 
	4	 	Completion
	 	 	8	 
	 	 	 
	 	 	 	 
	5	 	Warranties
	 	 	10	 
	 	 	 
	 	 	 	 
	6	 	Remedies of the Purchaser
	 	 	12	 
	 	 	 
	 	 	 	 
	7	 	Implementation
	 	 	15	 
	 	 	 
	 	 	 	 
	8	 	Costs
	 	 	15	 
	 	 	 
	 	 	 	 
	9	 	Other Provisions
	 	 	15	 
	 	 	 
	 	 	 	 
	10	 	Notices
	 	 	18	 
	 	 	 
	 	 	 	 
	11	 	Governing Law and Jurisdiction
	 	 	18	 
	 	 	 
	 	 	 	 
	12	 	Termination
	 	 	19	 

	 	 	 	 	 	 	 
	Schedule	 	Name	 	Page	 
	 	 	 
	 	 	 	 
	1	 	Disclosure Schedule
	 	 	20	 
	 	 	 
	 	 	 	 
	2	 	The Interests Transfer Documents
	 	 	28	 
	 	 	 
	 	 	 	 
	3	 	Warranties and Representations
	 	 	29	 
	 	 	 
	 	 	 	 
	4	 	The Vessel
	 	 	42	 
	 	 	 
	 	 	 	 
	5	 	The Consideration Formula
	 	 	43	 
	 	 	 
	 	 	 	 
	Execution Page	 	 	44	 
	 	 	 
	 	 	 	 

 

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DATED 12 June 2009

BETWEEN:

	(1)	 	Teekay Corporation, a Marshall Islands company having a principal office at 4th Floor,
Belvedere Building, 69 Pitts Bay Road, Hamilton, HM08, Bermuda (the “Vendor”)

	(2)	 	Teekay Tankers Ltd., a Marshall Islands limited partnership having a principal office at 4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM08, Bermuda (the “Purchaser”)

BACKGROUND

	(A)	 	The Vendor is the legal and beneficial owner of the Interests.

	(B)	 	Pursuant to the Contribution Agreement, the Vendor was obliged to offer for sale to the
Purchaser the Vessel together with m.v. “GANGES SPIRIT”, m.v. “YAMUNA SPIRIT” and m.v.
“NARMADA SPIRIT” within 18 months of the initial public offering of the Purchaser on 18
December 2007.

	(C)	 	The Contribution Agreement provides that the vessels referred to in Recital (B) above may be
offered for sale either individually, in groups or collectively.

	(D)	 	The Purchaser has previously purchased from the Vendor 100% of the entire equity interests or
share capital in Ganges Spirit LLC and Narmada Spirit LLC being the respective owners of m.v.
GANGES SPIRIT and m.v. NARMADA SPIRIT.

	(E)	 	Pursuant to the Memorandum, the Vendor has now elected to offer the Vessel for sale to the
Purchaser, which will involve inter alia the sale of the Interests by the Vendor to the
Purchaser.

	(F)	 	The Purchaser has agreed to purchase the Interests from the Vendor subject to the terms and
conditions of this Agreement.

OPERATIVE PROVISIONS

	1	 	DEFINITIONS AND INTERPRETATION

	1.1	 	Definitions

In this Agreement, including the Schedules and the recitals, unless the context requires
otherwise:

“Borrowers”, “Bookrunners”, “Collateral Transfer”, “Finance Documents”, “Lenders”,
“Mandated Lead Arrangers”, “Security Trustee” and “Swap Providers” each has the meaning
given to that term in the Facility Agreement.

“Business Day” means a day (other than a Saturday or Sunday) on which banks in New
York are open for the transaction of normal banking business (other than solely for
trading and settlement in Dollars) or, for the purposes of Clause 10 (Notices ), a day on
which banks are open for the transaction of normal banking business in the country of
receipt of a notice.

“Business Information” means all information and records (in whatever form held and
whether commercial, financial, technical or otherwise) relating to the Company or the
business
or activities or affairs of the Company, which can be reasonably considered to be
confidential to the Company.

 

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“Charter” means the time charter in respect of the Vessel dated 21st June
2006 between (i) the Company and (ii) the Charterer.

“Charterer” means Chevron Transport Corporation Ltd.

“Claim” means a claim for breach of Warranty by the Purchaser against the Vendor.

“Closing” means completion of the sale and purchase of the Interests in accordance
with Clause 4.1 (Timing and place of Closing ).

“Closing Date” means the day on which Closing takes place, which shall be on the same
date that the Purchaser receives proceeds from an equity offering for at least $65
million, provided that if TNK has not received such proceeds by August 13, 2009,
then neither the Purchaser nor the Vendor will be obligated to complete the sale and
purchase of the Interests in accordance with Clause 4.1 (Timing and place of Closing )
unless otherwise agreed in writing by the Purchaser and the Vendor.

“Collateral Transfer Arrangements” means the arrangements to be completed in order to
give effect to a Collateral Transfer in accordance with the terms of the Facility
Agreement.

“Company” means Ashkini Spirit L.L.C. (formerly known as Ingeborg Shipping L.L.C.), a
limited liability company formed under the laws of the Republic of the Marshall Islands
with a registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Marshall Islands MH96960.

“Consideration” means the consideration payable by the Purchaser for the Interests as
stated in Clause 3 (Consideration ).

“Consideration Formula” means the formula for the calculation of the Consideration as
set out in Schedule 5 (The Consideration Formula ).

“Contribution Agreement” means the contribution, conveyance and assumption agreement
dated 18 December 2007 and made between (i) the Vendor, (ii) the Purchaser and (iii)
Teekay Holdings Limited.

“Covered Environmental Losses” means all environmental and toxic tort Losses and
Expenses suffered or incurred by the Purchaser, the Purchaser Group Companies or the
Company by reason of or arising out of:

	 	(a)	 	any violation or correction of violation of Environmental Laws by the
Vendor or the Vendor Group Companies; or

 

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	 	(b)	 	any event or condition associated with ownership or operation by the Vendor
or the Vendor Group Companies of the Interests (including, without limitation, the
presence of Hazardous Substances on, under, about or migrating to or from the Vessel
or the disposal or release of Hazardous Substances generated by operation of the
Vessel), including, without limitation:

	 	(i)	 	the cost and expense of any investigation, assessment,
evaluation, monitoring, containment, cleanup, repair, restoration,
remediation or other corrective action required or necessary under
Environmental Laws;

	 	(ii)	 	the cost or expense of the preparation and implementation
of any closure, remedial, corrective action or other plans required or
necessary under Environmental Laws; and

	 	(iii)	 	the cost and expense for any environmental or toxic tort
pre-trial, trial or appellate legal or litigation support work,

but only to the extent that such violation complained of under (a), or such events or
conditions included in (b), occurred before the Closing Date and, provided that, in no
event shall Losses or Expenses to the extent arising from a change in any Environmental
Law after the Closing Date be deemed “Covered Environmental Losses”.

“Disclosed” means fully, fairly and expressly disclosed by the Transaction Documents
or the Disclosure Schedule and, for this purpose “fairly disclosed” means any information
disclosed in such manner and in such detail or with sufficient explanation as to enable a
reasonable purchaser to make an informed assessment or estimation of the matter concerned
and its financial, operational or other consequences to the Company.

“Disclosure Schedule” means the Disclosure Schedule provided to the Purchaser by the
Vendor concurrently with the execution and delivery of this Agreement.

“Dollars” means United States Dollars.

“Environmental Laws” means all federal, state, foreign and local laws, statutes,
rules, regulations, orders, judgments and ordinances relating to protection of health and
safety and the environment, each as amended up to and including the Closing Date.

“Facility” means the US$854,000,000 credit facility made available by the Lenders to
the Borrowers pursuant to the Facility Agreement.

“Facility Agreement” means the credit facility dated 28 November 2007 and made
between (i) the Borrowers, (ii) the Lenders, (iii) the Security Trustee, (iv) the Mandated
Lead Arrangers, (v) the Bookrunners and (vi) the Swap Providers pursuant to which the
Lenders have agreed to make a loan facility available to the Borrowers for the purposes
stated in the Facility Agreement.

“Financing Arrangements” means the financing arrangements in relation to the Vendor,
the Purchaser, the Company and the Vessel as contemplated by and created pursuant to the
Facility Agreement.

“Hazardous Substances” means:

	 	(a)	 	substances which contain substances defined in or regulated under
applicable Environmental Laws;

	 	(b)	 	petroleum and petroleum products, including crude oil and any fractions
thereof;

	 	(c)	 	natural gas, synthetic gas and any mixtures thereof;

 

5

 

	 	(d)	 	any substances with respect to which a federal, state, foreign or local
agency requires environmental investigation, monitoring, reporting or remediation;

	 	(e)	 	any hazardous waste or solid waste, within the meaning of any Environmental
Law;

	 	(f)	 	any solid, hazardous, dangerous or toxic chemical, material, waste or
substance, within the meaning of and regulated by any Environmental Law;

	 	(g)	 	any radioactive material; and

	 	(h)	 	any asbestos-containing materials that represent a health hazard.

“Indebtedness” means any borrowings or other indebtedness whatsoever owed by the
Company.

“Insolvency Event” means in relation to any of the Purchaser, the Vendor or the
Company (as the context may require) that any of the following actions has occurred in
relation to it:

	 	(a)	 	an order has been made or an effective resolution passed or other
proceedings or actions taken (including, without limitation, the presentation of a
petition) with a view to its administration, bankruptcy, winding-up, liquidation or
dissolution; or

	 	(b)	 	it has had a receiver, administrative receiver, manager or administrator
appointed over all or any substantial part of its undertaking or assets; or

	 	(c)	 	any event has occurred or situation arisen in any jurisdiction that has a
substantially similar effect to any of the foregoing.

“Interests” means 100% of the entire equity interests or share capital in the
Company.

“Losses and Expenses” means liabilities, losses, damages, claims, demands, awards and
expenses (including, without limitation, legal costs) and includes, for the avoidance of
doubt, any value added tax (VAT) (or similar tax) payable in relation to any such matter,
circumstance or item (except to the extent that the party claiming Losses and Expenses
obtains credit for such VAT as input tax).

“Memorandum” means, collectively, the memoranda dated 23 May 2008 and 9 March 2009
by the Vendor addressed to the Conflicts Committee of the Board of
Directors of the Purchaser.

“Purchaser Group Companies” means the Purchaser and any subsidiaries thereof.

“Relevant Documents” means those agreements, contracts, understandings and
arrangements to which the Company is a party or to which any of the Interests, the Vessel
or any other assets of the Company are subject or by which they are bound which are
material to the Company or its trading activities, set out in the Disclosure Schedule.

“Security Interest” means any mortgage, charge (whether fixed or floating), pledge,
lien, hypothecation, encumbrance, assignment, right of set-off, trust arrangement, title
retention or other security interest or other agreement or arrangement of any kind having
the effect of conferring security.

“Specified Rate” is the rate of interest equal to yearly LIBOR from time to time
plus 100 basis points.

 

6

 

“Tax” or “Taxation” means any tax, duty, contribution, impost, levy or charge in the
nature of tax, whether domestic or foreign, and any fine, penalty, surcharge or interest
in relation thereto, including without limitation (and without prejudice to the foregoing)
corporation tax, income tax (including tax failing to be deducted or withheld from or
accounted for in respect of any payment), capital gains tax, value added tax, customs
excise and import duties, stamp duty, stamp duty reserve tax, and any other payment
whatsoever that the Company is or may be or become bound to make to any person and that is
or purports to be in the nature of taxation or otherwise by reason of any taxation
statutes.

“Taxation Authority” means any national, local municipal, governmental, state,
federal or fiscal, revenue, customs or excise authority, body, agency or official anywhere
in the world having, or purporting to have power or authority in relation to Tax.

“Transaction Documents” means this Agreement and the other documents delivered at
Closing pursuant to Clause 4 (Completion ).

“Vendor’s Account” means such account of the Vendor as the Vendor may specify to the
Purchaser from time to time.

“Vendor Group Companies” means the Vendor and any subsidiary of the Vendor, from
time to time (except, with effect from Closing, the Company and any Purchaser Group
Companies).

“Vessel” means the vessel m.v. “ASHKINI SPIRIT” owned by the Company, details of
which are set out in Schedule 4 (The Vessel ).

“Warranties” means the representations and warranties set out in
Clause 5 (Warranties ) and Schedule 3 (Warranties and Representations ).

	1.2	 	Interpretation

	 
	1.2.1	 	Reference to:

	 	(a)	 	a person includes a legal or natural person, partnership, trust, company,
government or local authority department or other body (whether corporate or
unincorporated);

	 	(b)	 	a statutory or regulatory body shall include its successors and any
substituted body;

	 
	 	(c)	 	the singular includes the plural and vice versa; and

	 
	 	(d)	 	one gender includes all genders.

	1.2.2	 	Unless otherwise stated, a reference to a Clause, sub-clause or Schedule is a reference to a
Clause or sub-clause of, or Schedule to, this Agreement and a reference to this Agreement
includes its Schedules.

	1.2.3	 	Clause headings in this Agreement and in the Schedules are for ease of reference only and do
not affect its construction.

	1.2.4	 	In construing this Agreement the so-called eusdem generis rule does not apply and
accordingly the interpretation of general words shall not be restricted by words indicating a
particular class or particular examples.

 

7

 

	2	 	AGREEMENT FOR SALE

	2.1	 	Sale and purchase of Interests

Subject to the other provisions of this Agreement, the Vendor shall sell and transfer the
Interests to the Purchaser and the Purchaser shall purchase and take transfer of the
Interests on the Closing Date.

	2.2	 	Absolute title to Interests; no Security Interest in Interests

The Vendor shall take all steps within its power and control (but without any obligation
to expend any material amount) to procure that the Purchaser will duly obtain absolute
title to the entire legal and beneficial interest in the Interests, and all rights
(whether in respect of distributions, voting or otherwise) that at the date of this
Agreement or any later time are conferred on or by any of the Interests, free from any
Security Interest.

	3	 	CONSIDERATION

	3.1	 	Determination of the Consideration

	 
	 	 	The Consideration shall be determined in accordance with the Consideration Formula.

	 
	3.2	 	Payment of Consideration

The Consideration shall be paid by the Purchaser on the Closing Date by way of electronic
transfer to the account of the Vendor as specified by the Vendor in writing at least five
(5) Business days before the Closing Date.

	3.3	 	Vendor’s Undertakings

In addition to the transfer of the Interests to the Purchaser, the Vendor further
undertakes as follows:

	 	(a)	 	that on Closing, it shall procure that the Company shall have no net
liabilities other than the liabilities Disclosed in the Disclosure Schedule;

	 	(b)	 	following the Closing Date and upon receiving any notices, correspondence,
information or enquiries in relation to the Company, the Interests, the Vessel or the
Transaction Documents, it shall forthwith pass copies thereof to the Purchaser and
shall hold in trust for the Company and account forthwith for any monies received
after the Closing Date on account of the Company.

	4	 	COMPLETION

	4.1	 	Timing and place of Closing

Subject to the provisions of this Agreement, Closing shall be effected by the Vendor
satisfying its obligations under Clause 4.2 (Vendor’s Closing obligations ) and by the
Purchaser satisfying its obligations under Clause 4.3 (Purchaser’s Closing obligations )
and shall take place on the Closing Date.

 

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	4.2	 	Vendor’s Closing obligations

	4.2.1	 	The Vendor shall deliver or procure that there are delivered to the Purchaser on or before
the Closing Date (as the context may permit):

	 	(a)	 	A duly executed transfer in respect of the Interests in favour of the
Purchaser, or as it may direct;

	 	(b)	 	the certificates, if any, for the Interests (or an indemnity in the
approved form for any lost certificates);

	 	(c)	 	certified copies of the minutes of a meeting of the directors of the Vendor
(certified as at the date of Closing to be a certified copy of such resolutions in
full force and effect and certifying that such resolutions have not been revoked),
confirming that it has authorised the transfer of the Interests to the Purchaser;

	 	(d)	 	where applicable, all statutory and minute books (in every case written up
to, but not including, the Closing Date), common seals, certificates of formation and
certificates of amendment (or equivalent), cheque books, bank mandates and other
books and records (whether statutory, financial or otherwise) of the Company as
applicable and all certificates and documents of title relating to any investments of
the Company;

	 
	 	(e)	 	the original or certified true copies of the Transaction Documents;

	 
	 	(f)	 	the original or certified true copies of the Relevant Documents;

	 	(g)	 	evidence satisfactory to the Purchaser that all amounts payable by the
Company under any loan facilities made available by the Vendor (other than with
respect to amounts Disclosed as liabilities in the Disclosure Schedule), any bank,
financial institution, or any other person whether on the basis of any Security
Interest provided by the Company, and whether in relation to the Vessel or otherwise,
have been paid in full and all associated Security Interests (other than those
identified in the Disclosure Schedule) reassigned to the Company or to the person
giving the same; and

	 	(h)	 	the duly executed certificate of an officer of the Vendor dated on the
Closing Date, in form reasonably acceptable to the Purchaser, certifying on behalf of
the Vendor to the accuracy of the representations and Warranties (save as Disclosed
in the Disclosure Schedule or in writing not later than the time of Closing) of the
Vendor contained in this Agreement

	4.3	 	Purchaser’s Closing obligations

The Purchaser shall on Closing and subject to the transfer of the Interests:

	 	(a)	 	deliver or procure that there is delivered to the Vendor a certified copy
of the minutes of a meeting of its directors, authorising the execution of this
Agreement and any other Transaction Document that it is to execute pursuant to this
Agreement;

	 	(b)	 	pay to the Vendor the Consideration in accordance with Clause 3.2 (Payment
of Consideration).

 

9

 

	4.4	 	Closing obligations not fulfilled

	4.4.1	 	If either party fails, for any reason, to comply with any of its obligations under the
foregoing provisions of this Clause 4 (Completion ), the other party may, at its option:

	 	(a)	 	by written notice to the first party defer the date for Closing by one or
more periods that shall not exceed 20 (twenty) Business Days in aggregate in respect
of either all of the parties’ obligations under the foregoing provisions of this
Clause 4 (Completion ) or such of those obligations that have not been complied with;
or

	 	(b)	 	proceed to Closing so far as practicable but without prejudice to the
second party’s rights (whether under this Agreement or the general law) as regards
the obligations with which the first party has not complied; or

	 
	 	(c)	 	waive all or any of the obligations in question of the first party.

	4.4.2	 	If Closing is deferred to another date in accordance with Clause 4.4.1(a), and Closing is
effected, the provisions of this Agreement shall apply as if that other date were the Closing
Date.

	5	 	WARRANTIES

	5.1	 	General

The Vendor represents, warrants and undertakes, subject to Clause 5.8 (Disclosure in
Disclosure Schedule ), that each statement in Schedule 3 (Warranties and Representations )
is at the date of this Agreement, and will (save as Disclosed in the Disclosure Schedule
or in writing not later than the time of Closing) at the Closing Date remain, true,
accurate and not misleading in any respect on the basis that a reference to the Closing
Date were substituted for any express or implied reference to the date of this Agreement
in that Schedule.

	5.2	 	Claims

The Vendor hereby unconditionally and irrevocably covenants with the Purchaser that,
subject always to the limitations set out in Clause 6 (Remedies of the Purchaser ), it
will indemnify the Purchaser and the Company against all Losses and Expenses that any of
the Purchaser Group Company or the Company may suffer or incur or pay in enforcing its
rights in connection with any matter referred to in this Agreement or any of the
Transaction Documents including, without limitation:

	 	(a)	 	the disputing and/or settlement of any Claims and any steps taken to avoid
and advice sought in connection with any actual, threatened or anticipated Claims;

	 	(b)	 	any legal proceedings in which any of the Purchaser Group Companies or the
Company makes a Claim; and

	 
	 	(c)	 	the enforcement of any such settlement or judgement.

 

10

 

	5.3	 	Reliance on Warranties

The Vendor acknowledges that:

	 	(a)	 	the Purchaser has been induced to enter and is entering into this Agreement
and the other Transaction Documents on the basis of and in reliance upon the
Warranties;

	 	(b)	 	the Purchaser may rely on the Warranties to the exclusion of any other
information, and that, with the exception of matters set forth in the Disclosure
Schedule, the Purchaser’s rights in respect thereof will not be in any way impaired
as a result of any other information being possessed by or available to any Purchaser
Group Companies or any officer, employee, professional or financial adviser of, or
person acting on behalf of, the Purchaser or any Purchaser Group Companies.

	5.4	 	Warranties are separate and independent

Each Warranty shall be construed as a separate and independent warranty and, save as
expressly provided otherwise, shall not be limited or restricted by reference to or
inference from any other terms of this Agreement or any other Warranty.

	5.5	 	Reduction in Consideration

Any payments made by the Vendor to the Purchaser in respect of Claims shall, to the extent
lawfully possible, be treated by the parties as a reduction in the Consideration;
provided, however, that this Clause 5.5 (Reduction in Consideration ) shall not in any way
limit or restrict the amount recoverable by the Purchaser or any other person under this
agreement to the amount of the Consideration or any other amount (but this is without
prejudice to the limitations set out in Clause 6 (Remedies of the Purchaser ).

	5.6	 	Awareness of Vendor and Ordinary Course of Business

Where any Warranty is qualified by reference to the awareness, knowledge, information or
belief of the Vendor (or any similar expression), the Vendor shall be deemed to have such
awareness, knowledge, information or belief as it would have after having made reasonable
enquiry of the senior executive managers and officers of the Vendor. In relation to each
of the Warranties concerning the assets, liabilities, Transaction Documents, Relevant
Documents, Vessel or results of the Company, such Warranties shall be deemed to be
qualified by reference to exclude any matters (whether or not Disclosed) arising in the
ordinary and normal course of trading since the date of this Agreement.

	5.7	 	Provision of information

The Vendor undertakes promptly to provide the Purchaser with any information that the
Purchaser may by written notice request in relation to:

	 	(a)	 	any of the Warranties or any statement of fact contained elsewhere in this
Agreement, any Relevant Document or any Transaction Document; or

	 	(b)	 	the Disclosure Schedule or any other disclosure made or information
provided (or purportedly made or provided) under this Clause 5.7 (Provision of
information ); or

	 	(c)	 	any matter or question connected with or arising out of any of the
foregoing,

but this only applies to information that is (either at the date of the Agreement or at
the date of the request) in the possession of the Vendor or that the Vendor or any of its
professional advisers can reasonably be expected to obtain and present without undue
efforts.

 

11

 

	5.8	 	Disclosure in Disclosure Schedule

The Vendor shall not have any liability in respect of any Claim if and to the extent that
any fact, matter or circumstance that causes any of the Warranties to be breached or that
might result in a Claim or possible Claim has been Disclosed in the Disclosure Schedule or
otherwise in any of the Transaction Documents or Relevant Documents. The parties agree
that the Disclosure made by the documents listed in the Disclosure Schedule constitutes
full, fair and express disclosure of the facts, matters, transactions, rights,
obligations, assets, liabilities, arrangements, relationships and scope of information to
which those documents relate.

	5.9	 	Notification of potential Claims before Closing

If, at any time before Closing, the Vendor becomes aware of any Claim or any matter that
could reasonably be expected to cause a Claim to arise or any matter that at Closing would
constitute a Claim or could reasonably be expected to cause a Claim to arise, it shall
forthwith disclose the same in writing to the Purchaser.

	5.10	 	Organisation and good standing

Each party represents to the other party that it is duly formed, organised and validly
existing and in good standing under the laws of its jurisdiction of incorporation.

	5.11	 	Due authorisation

Each party represents to the other party that it has all necessary power, authority and
capacity to enter into this Agreement and to perform its obligations under this Agreement
and the execution of this Agreement has been duly authorised by all necessary action on
its part.

	5.12	 	No Impediments

To the best knowledge of each party after making such diligent inquiry as may be
reasonable under the circumstances, neither party has any knowledge of any impediment that
might impact the sale and purchase of the Interests as contemplated by this Agreement.

	6	 	REMEDIES OF THE PURCHASER

	6.1	 	Survival

Subject to the limitations and other provisions of this Agreement and the Transaction
Documents, the representations and warranties of the Vendor contained in this Agreement
(including the Schedules hereto), the Disclosure Schedule and the Relevant Documents shall
survive the Closing and remain in full force and effect for a period of 12 months after
the Closing Date; provided, however, that the Warranties in paragraph 1(b),
paragraph 1(c), paragraph 11 (Taxation ) and paragraph 12(a) of Schedule 3 (Warranties and
Representations ) to this Agreement shall survive until, and shall terminate upon, the
date of expiration of the applicable statute of limitations with respect to the liability
in question. The covenants and agreements of the Vendor contained in this Agreement and
the Transaction Documents that by their terms extend beyond the Closing Date shall not
terminate until all obligations with respect thereto have been performed or satisfied or
shall have expired or been terminated in accordance with their terms.

 

12

 

	6.2	 	Indemnification by the Vendor

	6.2.1	 	The Vendor agrees, subject to the other terms and conditions of this Agreement and the
Transaction Documents, to indemnify each of the Purchaser, the Purchaser Group Companies and
the Company against and hold it harmless from any and all:

	 	(a)	 	losses and expenses to the Purchaser, any Purchaser Group Companies or the
other Company arising out of or related to the breach of any representation,
warranty, covenant or agreement of the Vendor in this Agreement (including the
Schedules hereto), the Disclosure Schedule and the Transaction Documents, to the
extent Vendor is notified by the Purchaser of such Losses or Expenses prior to
expiration of the applicable survival period set forth in Clause 6.1 (Survival );

	 	(b)	 	Covered Environmental Losses relating to the Interests to the extent that
the Vendor is notified by the Purchaser of any such Covered Environmental Losses
within five (5) years after the Closing Date;

	 	(c)	 	Losses or Expenses to the Purchaser, the Purchaser Group Companies or the
Company arising from:

	 	(i)	 	the failure of the Purchaser Group Companies, immediately
after the Closing Date, to be the owner of such ownership interests in and to
the Interests as are necessary to enable the Purchaser Group Companies to own
and operate the Interests in substantially the same manner that the Interests
were owned and operated by the Vendor Group Companies immediately prior to
the Closing Date; or

	 	(ii)	 	the failure of the Purchaser Group Companies to have on the
Closing Date any consent or governmental permit necessary to allow the
Purchaser Group Companies to own or operate the Interests in substantially
the same manner that the Interests were owned and operated by the Vendor
Group Companies immediately prior to the Closing Date,

in each of Clause 6.2.1(c)(i) and Clause 6.2.1(c)(ii), to the extent that the
Vendor is notified by the Purchaser of such Losses or Expenses within three (3)
years after the Closing Date; and

	 	(d)	 	all federal, state, foreign and local income tax liabilities attributable
to the operation of the Interests prior to the Closing Date.

	6.2.2	 	The aggregate liability of Vendor under Clause 6.2.1 shall not exceed $10 million.
Furthermore, no claim may be made against Vendor for indemnification pursuant to Clause 6.2.1
unless the aggregate dollar amount of all claims for indemnification pursuant to such Clause
shall exceed $500,000, in which case Vendor shall be liable for claims for indemnification
only to the extent such aggregate amount exceeds $500,000.

	6.3	 	General Provisions

	6.3.1	 	The Purchaser agrees that within a reasonable period of time after it becomes aware of facts
giving rise to a claim for indemnification pursuant to Clause 6.2 (Indemnification by the
Vendor ), it will provide notice thereof in writing to the Vendor specifying the nature of and
specific basis for such claim.

 

13

 

	6.3.2	 	The Vendor shall have the right to control all aspects of the defence of (and any
counterclaims with respect to) any claims brought against the Purchaser the Purchaser Group
Companies or the Company that are covered by the indemnification set forth in
Clause 6.2 (Indemnification by the Vendor ), including, without limitation, the selection of
counsel, determination of whether to appeal any decision of any court and the settling of any
such matter or any issues relating thereto; provided, however, that no such settlement shall
be entered into without the consent (which consent shall not be unreasonably withheld) of the
Purchaser (with the concurrence of the conflicts committee of the Purchaser) unless it
includes a full release of the Purchaser, the Purchaser Group Companies and the Company from
such matter or issues, as the case may be.

	6.3.3	 	The Purchaser agrees to cooperate fully with the Vendor with respect to all aspects of the
defence of any claims covered by the indemnification set forth in Clause 6.2 (Indemnification
by the Vendor ), including, without limitation, the prompt furnishing to the Vendor of any
correspondence or other notice relating thereto that the Purchaser, the Purchaser Group
Companies or the Company may receive, permitting the names of such parties to be utilized in
connection with such defence, the making available to the Vendor of any files, records or
other information of such parties that the Vendor considers relevant to such defence and the
making available to the Vendor of any employees of the Purchaser, the Purchaser Group
Companies or the Company; provided, however, that in connection therewith the Vendor agrees to
use reasonable efforts to minimize the impact thereof on the operations of such parties and
further agrees to maintain the confidentiality of all files, records and other information
furnished by any such party pursuant to this Clause 6.3 (General Provisions ). In no event
shall the obligation of the Purchaser to cooperate with the Vendor as set forth in the
immediately preceding sentence be construed as imposing upon the Purchaser an obligation to
hire and pay for counsel in connection with the defence of any claims covered by the
indemnification set forth in this Clause 6 (Remedies of the Purchaser ); provided, however,
that the Purchaser may, at its own option, cost and expense, hire and pay for counsel in
connection with any such defence. The Vendor agrees to keep any such counsel hired by the
Purchaser reasonably informed as to the status of any such defence (including providing such
counsel with such information related to any such defence as such counsel may reasonably
request) but the Vendor shall have the right to retain sole control over such defence.

	6.3.4	 	In determining the amount of any Loss or Expense for which the Purchaser, the Purchaser
Group Companies or the Company is entitled to indemnification under this Agreement, the gross
amount of the indemnification will be reduced by (i) any insurance proceeds realized by such
parties, and such correlative insurance benefit shall be net of any incremental insurance
premium that becomes due and payable by such parties as a result of such claim, and (ii) all
amounts recovered by such parties under contractual indemnities from third persons. The
Purchaser hereby agrees to use commercially reasonable efforts to realize any applicable
insurance proceeds or amounts recoverable under such contractual indemnities; provided,
however, that the costs and expenses (including, without limitation, court costs and
reasonable attorneys’ fees) of the Purchaser, the Purchaser Group Companies or the Company in
connection with such efforts shall be promptly reimbursed by the Vendor in advance of any
determination of whether such insurance proceeds or other amounts will be recoverable.

	6.3.5	 	The Purchaser hereby acknowledges and agrees that its sole and exclusive remedy with respect
to any and all claims relating to the subject matter of this Agreement and the other
Transaction Documents shall be pursuant to the indemnification provisions set forth in this
Clause 6 (Remedies of the Purchaser ). In furtherance of the foregoing, the Purchaser hereby
waives, to the fullest extent permitted under applicable law, any and all rights, claims and
causes of action it may have against the Vendor and the Vendor Group Companies arising under
or based upon any federal, state, foreign or local statute, law, ordinance, rule or
regulation (including, without limitation,
any such rights, claims or causes of action
arising under or based upon common law or
otherwise).

 

14

 

	7	 	IMPLEMENTATION

	7.1	 	Further assurances

The Vendor shall (and shall procure that any other relevant person shall) execute any
deeds or documents and exercise or waive any rights and generally take any action,
including passing (or procuring that there is passed) any resolution of the Vendor or
(whilst the Vendor remains the registered owner) the Company that the Purchaser may
reasonably require, which may be necessary for this Agreement and the other Transaction
Documents to be carried into effect.

	8	 	COSTS

	8.1	 	Responsibility for costs

Except where expressly provided otherwise, each party shall pay its own costs connected
with the negotiation, preparation, execution and implementation of this Agreement and the
other Transaction Documents and any matters connected therewith and investigating the
affairs of the Company.

	9	 	OTHER PROVISIONS

	9.1	 	Entire agreement

This Agreement together with the other Transaction Documents constitutes the entire
agreement between the parties regarding the sale and purchase of the Interests and related
matters and supersedes any prior drafts, agreements, undertakings, representations,
warranties and arrangements of any kind, whether or not in writing, regarding the same,
all of which are hereby terminated and shall cease to have effect in all respects, this
Agreement and the parties confirm that there are no collateral or supplemental agreements
relating to the other Transaction Documents, except as expressly set forth herein or
therein.

	9.2	 	Assignment

	9.2.1	 	This Agreement shall be binding on and enure for the benefit of each party’s successors and
permitted assigns. Save as provided in Clause 9.2.2, no party shall, without the prior
written consent of the other party, assign, transfer, charge or deal in any other manner with
this Agreement or any of its rights (whether to damages or otherwise) or obligations arising
under or in connection with the Agreement, or purport to do any of the same, nor sub-contract
any or all of its obligations under this Agreement, and any such assignment, transfer, charge
or dealing shall be void for all purposes.

	9.2.2	 	The Purchaser may assign all or any part of its rights and benefits under this Agreement to
any Purchaser Group Companies.

	9.2.3	 	Subject to and upon any succession or assignment permitted by this Agreement, any such
successor or assignee shall in its own right be able to enforce any term of this Agreement in
accordance with the terms of this Agreement as if it were a party, but until such time shall
have no rights whether as a third party or otherwise. The Vendor shall have no greater
liabilities towards any successor or assignee of the Purchaser than it would have had to the
Purchaser had the Purchaser remained fully and solely entitled under this Agreement.

 

15

 

	9.3	 	Right of set-off, deductions and withholdings and Tax on payments

	9.3.1	 	The Purchaser shall not be entitled to set off against the Consideration any sums owing to
it by the Vendor.

	9.3.2	 	If any deduction or withholding is required by law to be made from any payment from one
party to another party under this Agreement or any other Transaction Document, the party
making the payment shall increase the amount thereof so as to ensure that the recipient
receives and is able to retain that amount that it would have received and retained had the
payment not been the subject matter of such deduction or withholding provided always that if
the recipient is entitled to a credit or some other benefit as a consequence of the payment to
it being the subject matter of a deduction or withholding it shall use its reasonable
endeavours to utilise the credit (whether by set off, or by claiming a repayment in respect
thereof, or otherwise) or benefit so arising and in the event that it is able so to do it
shall repay to the party who made the payment an amount equal to the credit or benefit so
utilised, provided always that this Clause is without prejudice to the limitations on the
Vendor’s liabilities as set out in Clause 6 (Remedies of the Purchaser ). For the avoidance
of doubt, this Clause 9.3.2 shall not impose upon the recipient of the payment any obligation
to utilise any credit or benefit in priority to any other economic credit or benefit available
to it or to pay to the party making the payment an amount greater than that by which the
original payment was increased under this Clause 9.3 (Right of set-off, deductions and
withholdings and Tax on payments ).

	9.3.3	 	If any payment from the Vendor to the Purchaser under this Agreement or any other
Transaction Document is liable to Tax in the hands of the Purchaser, the Vendor shall increase
the payment by such an amount as will ensure that the Purchaser is able to receive and retain,
after paying Tax in respect of its receipt, an amount equal to that which would otherwise have
been paid to it had the receipt not been subject to Tax in its hands, provided always that
this Clause is without prejudice to the limitations on the Vendor’s liabilities as set out in
Clause 6 (Remedies of the Purchaser ). The parties shall agree to the amount of any increase
in a relevant payment to give effect to this Clause 9.3 (Right of set-off, deductions and
withholdings and Tax on payments ). In the event that the parties are not able to agree the
amount of any increase, the amount thereof shall be certified by the Purchaser’s auditors
acting as experts whose decision in respect thereof shall be binding on the relevant parties
except in the case of manifest error.

	9.4	 	Waivers, rights and remedies

	9.4.1	 	No failure or delay on the part of either party to this Agreement in exercising any right or
remedy provided by law or under this Agreement shall impair such right or remedy or operate as
a waiver or variation of it or preclude its exercise at any subsequent time and no single or
partial exercise of any such right or remedy shall preclude or restrict any other or further
exercise of it or the exercise of any other right or remedy.

	9.4.2	 	A waiver by either party to this Agreement of a breach of or default this Agreement or under
any other Transaction Document shall not constitute a waiver of any other breach or default,
shall not affect the other terms of this Agreement or any other Transaction Document or the
rights of any other person thereto and shall not prevent the Purchaser from subsequently
requiring compliance with the waived obligation.

	9.4.3	 	Any waiver (in whole or in part) of any right or remedy under this Agreement must be set out
in writing, signed by or on behalf of the person granting the waiver and may be given subject
to any conditions thought fit by the grantor and, unless otherwise expressly stated, any
waiver
shall be effective only in the instance and only for the purpose for, and in favour of the
person to, which it is given.

 

16

 

	9.4.4	 	Unless specifically provided this Agreement and otherwise, the rights and remedies of the
Purchaser and the Vendor under or pursuant to any other Transaction Document are cumulative,
may be exercised as often as the Purchaser or the Vendor, as applicable considers appropriate
and are in addition to its rights and remedies under the general law.

9.5 Variations

No variation of this Agreement or any other Transaction Document shall be valid unless it
is agreed in writing and signed by or on behalf of each of the parties thereto.

	9.6	 	Effect of Closing

This Agreement (other than obligations that have already been fully performed) remains in
full force after Closing.

	9.7	 	Provisions of Agreement severable

If any provisions of this Agreement or any other Transaction Document is, or becomes,
invalid, unenforceable or illegal, in whole or in part, under the laws of any
jurisdiction, such term or provision or part shall to that extent be deemed not to form
part of this Agreement or the relevant Transaction Document (as the case may be), but the
validity, enforceability or legality of the remaining provisions of this Agreement or the
relevant Transaction Document shall not be impaired.

	9.8	 	Interest for late payment

Any sum owing by either party under this Agreement or any other Transaction Document shall
carry interest from (and excluding) the date on which it is payable until (and including)
the date of actual payment at the Specified Rate. Such interest will be compounded
semi-annually and be payable after as well as before any judgment.

	9.9	 	Counterparts

This Agreement and each of the other Transaction Documents may be entered into in any
number of counterparts and by the parties thereto on separate counterparts, each of which
when so executed and delivered shall be an original but each such document shall not be
effective until each party thereto has executed at least one counterpart, but all the
counterparts for document shall together constitute one and the same instrument.

	9.10	 	Third party rights

This Agreement and the other Transaction Documents are made for the benefit of the
respective parties hereto and thereto and their successors and permitted assigns only and
are not intended to benefit, and no term thereof shall be enforceable by, any other person
by virtue of the Contracts (Rights of Third Parties) Act 1999.

 

17

 

	10	 	NOTICES

	10.1	 	General

Any notice under or in connection with this Agreement shall be in writing and may be
delivered by hand or fax to the address of the relevant party that is set out below or to
such other address as that party may have notified in writing from time to time to the
party serving the notice, which notice so served by fax shall be deemed to have been
received at the time of despatch:

	 	(a)	 	the Vendor

	 	 	 
	Name:

	 	Teekay Corporation
	 
	 	 
	Address:

	 	Suite No. 1778,
	 

	 	48 Par-la-Ville Road,
	 

	 	Hamilton, HM 11
	 

	 	Bermuda
	 
	 	 
	Fax Number:

	 	+011 441 292 3931

marked for the attention of the Corporate Secretary

	 	(b)	 	the Purchaser

	 	 	 
	Name:

	 	Teekay Tankers Ltd.
	 
	 	 
	Address:

	 	Suite No. 1778,
	 

	 	48 Par-la-Ville Road,
	 

	 	Hamilton, HM 11
	 

	 	Bermuda
	 
	 	 
	Fax Number:

	 	+011 441 292 3931

marked for the attention of the Corporate Secretary

	11	 	GOVERNING LAW AND JURISDICTION

	11.1	 	English law

	 
	 	 	This Agreement is governed by, and shall be construed in accordance with, English law.

	 
	11.2	 	Arbitration

	11.2.1	 	Any dispute arising out of this Agreement shall be referred to arbitration in London in
accordance with the Arbitration Act 1996 and any statutory re-enactment or modification
thereof before a sole arbitrator agreed by the parties or failing agreement within 7 days of
receipt by one party of a notice (the “First Notice”) from the other proposing an arbitrator,
a tribunal of three arbitrators comprising:

	 	(a)	 	the arbitrator proposed in the First Notice;

	 
	 	(b)	 	an arbitrator appointed by the party that received the First Notice; and

	 	(c)	 	an arbitrator, who shall be the chairman, appointed by the two arbitrators
referred to in Clause 11.2.1(a) and Clause 11.2.1(b).

 

18

 

	11.2.2	 	If the party receiving the First Notice does not within 14 days of receipt thereof notify
the other party of its appointed arbitrator, the arbitrator referred to in Clause 11.2.1(a)
shall be deemed appointed as sole arbitrator.

	11.2.3	 	Once appointed in relation to a dispute, a sole arbitrator or tribunal shall resolve all
other disputes between the parties in relation to this Agreement, subject to the availability
of the arbitrator(s).

	12	 	TERMINATION

	12.1	 	Termination

This Agreement may be terminated upon written notice given at any time before the Closing:

	 	(a)	 	by the mutual written consent of Vendor and Purchaser;

	 
	 	(b)	 	by the Vendor, in the event of a material breach by the Purchaser of any
representation, Warranty, covenant or agreement of the Purchaser contained herein
that has not been cured or is not curable by the Closing Date; or

	 
	 	(c)	 	by the Purchaser, in the event of a material breach by the Vendor of any
representation, Warranty, covenant or agreement of the Vendor contained herein that
has not been cured or is not curable by the Closing Date.

	12.2	 	Effect of Termination

In the event of the termination of this Agreement pursuant to Clause 12.1 (Termination ),
the parties shall be relieved of their obligations under this Agreement, save that
Clause 1 (Definitions and Interpretation ) and Clause 10 (Notices ) to
Clause 11 (Governing Law and Jurisdiction ) shall continue in full force and effect, and
neither party shall have any claims against the other party in connection with this
Agreement except in respect of any accrued rights or obligations arising under this
Agreement before termination or in connection with any antecedent breach by any party of
any provision of this Agreement or any breach by any party of any continuing provision of
this Agreement.

In witness whereof this Agreement has been executed by or on behalf of the parties the day and year
first above written.

 

19

 

Schedule 1 

Disclosure Schedule

1    Finance Documents

	 	 	 	 	 	 	 	 	 
	 	 	Document	 	Parties	 	Date
	 
	 
	1.

	 	Loan Agreement
	 	Borrowers / Lenders / Agent /Security

Trustee / Mandated

Lease Arrangers / Bookrunners

/ Swap Provider
	 	 	28.11.2007	 
	 
	 	 	 	 	 	 	 	 
	2.

	 	Guarantee and Indemnity in
respect of the various
obligations of the A Borrowers
together with Deed of Release
	 	Guarantor B / Security Trustee

Guarantor B / Security Trustee
	 	 	28.11.2007

18.11.2007	 
	 
	 	 	 	 	 	 	 	 
	3.

	 	Guarantee and Indemnity in
respect of the various
obligations of the A Borrowers
	 	Guarantor A / Security Trustee
	 	 	18.11.2007	 
	 
	 	 	 	 	 	 	 	 
	4.

	 	Guarantee and Indemnity in
respect of the various
obligations of the B Borrowers
	 	Guarantor B / Security Trustee
	 	 	28.11.2007	 
	 
	 	 	 	 	 	 	 	 
	5.

	 	ISDA Master Agreement and
schedule thereto
	 	A Borrowers / Swap Provider
	 	 	28.11.2007	 
	 
	 	 	 	 	 	 	 	 
	6.

	 	ISDA Novation Agreement
	 	A Borrowers / Swap Provider
	 	 	28.11.2007	 
	 
	 	 	 	 	 	 	 	 
	7.

	 	Pledge agreement in relation to
the A Borrowers together with:
	 	Pledgor B / Security Trustee
	 	 	18.12.2007	 
	 
	 	 	 	 	 	 	 	 
	7.1

	 	Irrevocable Proxies; and
	 	Pledgor B
	 	 	18.12.2007	 
	 
	 	 	 	 	 	 	 	 
	7.2

	 	LLC Certificates
	 	A Borrowers
	 	 	18.12.2007	 
	 
	 	 	 	 	 	 	 	 
	8.

	 	Pledge Agreement in relation to
the B Borrowers together with:
	 	Pledgor C / Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	8.1

	 	Irrevocable Proxy; and
	 	Pledgor C
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	8.2

	 	LLC Certificates
	 	B Borrowers
	 	 	21.11.2007	 
	 
	 	 	 	 	 	 	 	 
	9.

	 	First Priority Bahamas Ship
Mortgage over m.v. “EVEREST
SPIRIT” together with:
	 	Everest Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	9.1

	 	Transcript of Register
	 	BMA
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	10.

	 	Deed of Covenants
	 	Everest Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 

 

20

 

	 	 	 	 	 	 	 	 	 
	 	 	Document	 	Parties	 	Date
	 
	 
	11.

	 	Deed of Assignment together with:
	 	Everest Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	11.1

	 	Notice of Assignment
	 	Everest Spirit Holding L.L.C.
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	11.2

	 	Loss Payable Clause
	 	Everest Spirit Holding L.L.C.
	 	Undated

	 
	 	 	 	 	 	 	 	 
	12.

	 	First Priority Bahamas Ship
Mortgage over m.v. “KANATA
SPIRIT” together with:
	 	Kanata Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	12.1

	 	Transcript of Register
	 	BMA
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	13.

	 	Deed of Covenants
	 	Kanata Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	14.

	 	Deed of Assignment together with:
	 	Kanata Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	14.1

	 	Notice of Assignment; and
	 	Kanata Spirit Holding L.L.C.
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	14.2

	 	Loss Payable Clause
	 	Kanata Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	15.

	 	First Priority Bahamas Ship
Mortgage over m.v. “KAREELA
SPIRIT” together with:
	 	Kareela Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Transcript of Register
	 	BMA
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	16.

	 	Deed of Covenants
	 	Kareela Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	17.

	 	Deed of Assignment together with:
	 	Kareela Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	17.1

	 	Notice of Assignment; and
	 	Kareela Spirit Holding L.L.C.
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	17.2

	 	Loss Payable Clause
	 	Kareela Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	18.

	 	First Priority Bahamas Ship
Mortgage over m.v. “KYEEMA
SPIRIT” together with:
	 	Kyeema Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	18.1

	 	Transcript of Register
	 	BMA
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	19.

	 	Deed of Covenants
	 	Kyeema Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	20.

	 	Deed of Assignment together with:
	 	Kyeema Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 

 

21

 

	 	 	 	 	 	 	 	 	 
	 	 	Document	 	Parties	 	Date
	 
	 	 	 	 	 	 	 	 
	20.1

	 	Notice of Assignment; and
	 	Kyeema Spirit Holding L.L.C.
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	20.2

	 	Loss Payable Clause
	 	Kyeema Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	21.

	 	First Priority Bahamas Ship
Mortgage over m.v. “NASSAU
SPIRIT” together with:
	 	Nassau Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	21.1

	 	Transcript of Register
	 	BMA
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	22.

	 	Deed of Covenants
	 	Nassau Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	23.

	 	Deed of Assignment together with:
	 	Nassau Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	23.1

	 	Notice of Assignment; and
Loss Payable Clause
	 	Nassau Spirit Holding L.L.C. 

Nassau Spirit Holding L.L.C.
	 	10.12.2007

undated

	 
	 	 	 	 	 	 	 	 
	24.

	 	First Priority Bahamas Ship
Mortgage over m.v. “FALSTER
SPIRIT” together with:
	 	Falster Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	24.1

	 	Transcript of Register
	 	BMA
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	25.

	 	Deed of Covenants
	 	Falster Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	26.

	 	Deed of Assignment together with:
	 	Falster Spirit Holding L.L.C.
/ Security Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	26.1

	 	Notice of Assignment; and
	 	Falster Spirit Holding L.L.C.
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	26.2

	 	Loss Payable Clause
	 	Falster Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	27.

	 	First Priority Bahamas Ship
Mortgage over m.v. “SOTRA
SPIRIT” together with:
	 	Sotra Spirit Holding L.L.C. /Security
Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	27.1

	 	Transcript of Register
	 	BMA
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	28.

	 	Deed of Covenants
	 	Sotra Spirit Holding L.L.C. /Security
Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	29.

	 	Deed of Assignment together with:
	 	Sotra Spirit Holding L.L.C. /Security
Trustee
	 	 	10.12.2007	 
	 
	 	 	 	 	 	 	 	 
	29.1

	 	Notice of Assignment; and
	 	Sotra Spirit Holding L.L.C.
	 	 	10.12.2007	 

 

22

 

	 	 	 	 	 	 	 	 	 
	 	 	Document	 	Parties	 	Date
	 
	 
	29.2

	 	Loss Payable Clause
	 	Sotra Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	30.

	 	First Priority Bahamas Ship
Mortgage over m.v. “GODAVARI
SPIRIT” together with:
	 	Godavari Spirit Holding
L.L.C. / Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	30.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	31.

	 	Deed of Covenants
	 	Godavari Spirit Holding
L.L.C. / Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	32.

	 	Deed of Assignment together with:
	 	Godavari Spirit Holding
L.L.C. / Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	32.1

	 	Notice of Assignment; and
	 	Godavari Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	32.2

	 	Loss Payable Clause
	 	Godavari Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	33.

	 	First Priority Bahamas Ship
Mortgage over m.v. “ISKMATI
SPIRIT” together with:
	 	Iskmati Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	33.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	34.

	 	Deed of Covenants
	 	Iskmati Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	35.

	 	Deed of Assignment together with:
	 	Iskmati Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	35.1

	 	Notice of Assignment; and
	 	Iskmati Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	35.2

	 	Loss Payable Clause
	 	Iskmati Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	36.

	 	First Priority Bahamas Ship
Mortgage over m.v. “ASHKINI
SPIRIT” together with:
	 	Ashkini Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	36.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	37.

	 	Deed of Covenants
	 	Ashkini Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	38.

	 	Deed of Assignment together with:
	 	Ashkini Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	38.1

	 	Notice of Assignment
	 	Ashkini Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	38.2

	 	Loss Payable Clause
	 	Ashkini Spirit Holding L.L.C.
	 	undated

 

23

 

	 	 	 	 	 	 	 	 	 
	 	 	Document	 	Parties	 	Date
	 
	 
	39.

	 	First Priority Bahamas Ship
Mortgage over m.v. “NARMADA
SPIRIT” together with:
	 	Narmada Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	39.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	40.

	 	Deed of Covenants
	 	Narmada Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	41.

	 	Deed of Assignment together with:
	 	Narmada Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	41.1

	 	Notice of Assignment; and
	 	Narmada Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	41.2

	 	Loss Payable Clause
	 	Narmada Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	42.

	 	First Priority Bahamas Ship
Mortgage over m.v. “KAVERI
SPIRIT” together with:
	 	Kaveri Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	42.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	43.

	 	Deed of Covenants
	 	Kaveri Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	44.

	 	Deed of Assignment together with:
	 	Kaveri Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	44.1

	 	Notice of Assignment
	 	Kaveri Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	44.2

	 	Loss Payable Clause
	 	Kaveri Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	45.

	 	First Priority Bahamas Ship
Mortgage over m.v. “GANGES
SPIRIT” together with:
	 	Ganges Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	45.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	46.

	 	Deed of Covenants
	 	Ganges Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	47.

	 	Deed of Assignment together with:
	 	Ganges Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	47.1

	 	Notice of Assignment
	 	Ganges Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	47.2

	 	Loss Payable Clause
	 	Ganges Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	48.

	 	First Priority Bahamas Ship
Mortgage over m.v. “YAMUNA
SPIRIT” together with:
	 	Yamuna Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	48.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 

 

24

 

	 	 	 	 	 	 	 	 	 
	 	 	Document	 	Parties	 	Date
	 
	 
	49.

	 	Deed of Covenants
	 	Yamuna Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	50.

	 	Deed of Assignment together with:
	 	Yamuna Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	50.1

	 	Notice of Assignment
	 	Yamuna Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	50.2

	 	Loss Payable Clause
	 	Yamuna Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	51.

	 	First Priority Bahamas Ship
Mortgage over m.v. “LUIT SPIRIT”
together with:
	 	Luit Spirit Holding L.L.C. /Security
Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	51.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	52.

	 	Deed of Covenants
	 	Luit Spirit Holding L.L.C. /Security
Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	53.

	 	Deed of Assignment together with:
	 	Luit Spirit Holding L.L.C. /Security
Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	53.1

	 	Notice of Assignment
	 	Luit Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	53.2

	 	Loss Payable Clause
	 	Luit Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	54.

	 	First Priority Bahamas Ship
Mortgage over m.v. “TEESTA
SPIRIT” together with:
	 	Teesta Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	54.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	55.

	 	Deed of Covenants
	 	Teesta Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	56.

	 	Deed of Assignment together with:
	 	Teesta Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	56.1

	 	Notice of Assignment
	 	Teesta Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	56.2

	 	Loss Payable Clause
	 	Teesta Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	57.

	 	First Priority Bahamas Ship
Mortgage over m.v. “MAHANADI
SPIRIT” together with:
	 	Mahanadi Spirit Holding
L.L.C. / Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	57.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	58.

	 	Deed of Covenants
	 	Mahanadi Spirit Holding
L.L.C. / Security Trustee
	 	 	30.11.2007	 

 

25

 

	 	 	 	 	 	 	 	 	 
	 	 	Document	 	Parties	 	Date
	 
	 
	59.

	 	Deed of Assignment together with:
	 	Mahanadi Spirit Holding
L.L.C. / Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	59.1

	 	Notice of Assignment
	 	Mahanadi Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	59.2

	 	Loss Payable Clause
	 	Mahanadi Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	60.

	 	First Priority Bahamas Ship
Mortgage over m.v. “ESTHER
SPIRIT” together with:
	 	Esther Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	60.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	61.

	 	Deed of Covenants
	 	Esther Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	62.

	 	Deed of Assignment together with:
	 	Esther Spirit Holding L.L.C.
/ Security Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	62.1

	 	Notice of Assignment
	 	Esther Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	62.2

	 	Loss Payable Clause
	 	Esther Spirit Holding L.L.C.
	 	undated

	 
	 	 	 	 	 	 	 	 
	63.

	 	First Priority Bahamas Ship
Mortgage over m.v. “AXEL SPIRIT”
together with:
	 	Axel Spirit Holding L.L.C. /Security
Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	63.1

	 	Transcript of Register
	 	BMA
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	64.

	 	Deed of Covenants
	 	Axel Spirit Holding L.L.C. /Security
Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	65.

	 	Deed of Assignment together with:
	 	Axel Spirit Holding L.L.C. /Security
Trustee
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	65.1

	 	Notice of Assignment
	 	Axel Spirit Holding L.L.C.
	 	 	30.11.2007	 
	 
	 	 	 	 	 	 	 	 
	65.2

	 	Loss Payable Clause
	 	Axel Spirit Holding L.L.C.
	 	undated

 

26

 

	2	 	Vessel Documents

	2.1	 	Shelltime 4 Time Charter Party dated 21st June 2006 made between (i) Ashkini
Spirit L.L.C. and (ii) Chevron Transport Corporation Ltd;

	2.2	 	BMA Transcript of Register dated 30th November, 2007;

	 
	2.3	 	BMA Permanent Certificate of Registry dated 8th April 2008;

	 
	2.4	 	BMA Ship Radio Communication Licence dated 4th March, 2009;

	 
	2.5	 	BMA Minimum Safe Manning Document dated 14th January, 2009;

	 
	2.6	 	COFR Certificate dated 19th September 2007;

	 
	2.7	 	BMA Carving and Marking Note;

	 
	2.8	 	DNV Class Certificate dated 20th February, 2008;

	2.9	 	Inspection report dated 25th March, 2009 in relation to m.v. “ASHKINI SPIRIT”.

	3	 	Insurance Documents

	3.1	 	Hull and Machinery (H&M) Policy

	 
	3.2	 	Increased Value (IV) Policy

	 
	3.3	 	War Policy

	 
	3.4	 	Protection and Indemnity (P&I) Policy

 

27

 

Schedule 2

The Interests Transfer Documents

Certificate of Limited Liability Interest of Ashkini Spirit L.L.C., signed by its member, Teekay
Tankers Ltd. and duly endorsed by the Vendor for transfer to the Purchaser.

 

28

 

Schedule 3

Warranties and Representations

	1	 	The Company and the Interests

	(a)	 	Information

The Company is duly formed and validly existing under the laws of The Republic of the
Marshall Islands. The Company has the requisite power and authority to own and operate
its properties and assets and to carry on its business.

	(b)	 	Title to Interests

The Interests constitute 100% of the issued capital of the Company, the Vendor is the sole
legal and beneficial owner of the Interests, and no claim has been made by any person to
be entitled to any of them. The Interests have been duly authorized, properly allotted
and validly issued and are fully paid, or credited as fully paid, and non-assessable.
Save as Disclosed there is no Security Interest, option, conversion right, right to
acquire, or other adverse interest, right, equity, claim or potential claim of any
description on or over or affecting any of the Interests nor are there any agreements,
arrangements or commitments to give or create any such Security Interest, right or claim,
and no claim has been made by any person to be entitled to any.

	(c)	 	No arrangements relating to share capital

The Company has not created or issued any shares or equity interests (other than the
Interests). There is no agreement, arrangement, obligation or commitment (including an
option or right of pre-emption or conversion) requiring or granting any person the right
to require the creation, allotment, issue, transfer, redemption or repayment of, or
creating or requiring the creation of any Security Interest over, or requiring the grant
to a person of the right (conditional or not) to require the allotment, issue, transfer,
redemption or repayment of, any shares, equity or loan capital in the Company (or any
unissued shares, equity capital, loan capital or other securities of the Company) now or
at any time in the future, and the Company has not agreed to do or enter into any of the
foregoing and no person has made any claim to be entitled to any of the foregoing.

	(d)	 	No capital reorganisation

The Company has not since its incorporation or formation:

	 	(i)	 	made any issue of securities by way of capitalisation of profits or
reserves (including share premium account and capital redemption reserve); or

	 
	 	(ii)	 	repaid, purchased or redeemed any shares of any class of its share capital
or otherwise reduced its share capital or any class of it;

and not agreed to do any of the foregoing (whether at the option of any other person or
otherwise).

 

29

 

	(e)	 	No agreement/arrangement

Save as Disclosed, neither the Vendor nor the Company are party to any agreement or
arrangement concerning:

	 	(i)	 	the transfer or disposal of the Interests or any interest therein or any
restriction thereon or obligation relating thereto;

	 	(ii)	 	the exercise of votes at meetings of the board of the Company (if any) or
of the holders of any class of Interests; or

	 	(iii)	 	the right to appoint or remove any directors or officers of the Company
(where applicable).

	(f)	 	No Security Interest over assets

Save as Disclosed, There is no Security Interest (other than liens arising in the usual
course of business consistent with past practices) affecting the whole or any material
part of the assets of the Company.

	2	 	The Vendor

	(a)	 	Capacity of Vendor

As regards the Vendor:

	 	(i)	 	it has the requisite power and authority to enter into this Agreement and
the Transaction Documents to which it is a party and perform all its obligations
thereunder;

	 	(ii)	 	this Agreement and the Transaction Documents to which it is a party
constitute (or will constitute when executed) its legal, valid and binding
obligations enforceable against it in accordance with their terms;

	 	(iii)	 	it has the power and authority to absolutely and unconditionally sell and
transfer the full legal and beneficial ownership in the Interests registered in its
name to the Purchaser on the terms set out in this Agreement;

	 	(iv)	 	the execution and delivery of this Agreement and the Transaction Documents
and performance by it of the obligations thereunder do not and will not result in a
breach of, or constitute any default under, any law or regulation, any order,
judgement or decree by any court or governmental agency to which it is a party or by
which it is bound, its Articles of Incorporation and Bylaws or any agreement to which
it is a party;

	 	(v)	 	all consents, licences, approvals and authorisations required by it in
connection with this Agreement and the Transaction Documents to which it is a party
and the transactions contemplated thereby have been obtained and are in full force
and effect;

	 	(vi)	 	no action, suit, proceeding, litigation or dispute against it or any Vendor
Group Companies is presently taking place or pending or, to its knowledge, threatened
that would or might reasonably be expected to inhibit its ability to perform its
obligations under this Agreement and the Transaction Documents to which it is a party
or that could materially and adversely affect the Interests; and

	 	(vii)	 	in so far as it is a body corporate:

	 	(A)	 	it is a body corporate duly incorporated and validly
existing under the laws of the jurisdiction in which it is incorporated;

 

30

 

	 	(B)	 	no Insolvency Event has occurred in relation to it and no
events or circumstances have arisen that entitle or could entitle any person
to take any action, appoint any person, commence proceedings or obtain any
order instigating an Insolvency Event.

	(b)	 	Vendor/Company relationship

Save as Disclosed, neither the Vendor, nor any Vendor Group Companies:

	 	(i)	 	owe any indebtedness or other liability and which in aggregate exceeds
$100,000 to the Company whether actually or contingently, whether solely or jointly
with any other person and whether as principal or surety, and there is no such
indebtedness or liability and which in aggregate exceeds $100,000 due or owing by the
Company to the Vendor, or any Vendor Group Companies and there is no guarantee or
Security Interest in respect of any such indebtedness or liability outstanding;

	 	(ii)	 	are party to any agreement, arrangement or understanding, other than this
Agreement and the Transaction Documents, with the Company or relating to the Company
or the Interests in which the Vendor, any Vendor Group Companies is or has been
interested, whether directly or indirectly, and there is no agreement, arrangement or
understanding to which the Company is a party and in which the Vendor, or any Vendor
Group Companies has or has had an interest, whether directly or indirectly; or

	 	(iii)	 	is entitled to a claim of any nature against the Company, or which
individually does not exceed $100,000, or has assigned to any person the benefit of a
claim against the Company to which it would otherwise be entitled.

	3	 	Agreements

	(a)	 	Disclosure of Relevant Documents

Complete and accurate copies of all Relevant Documents (including all amendments and
supplemental agreements relating thereto) have been provided to the Purchaser and all
Relevant Documents are set out in the Disclosure Schedule.

	(b)	 	Enforceability of and compliance with agreements

In relation to each Relevant Document:

	 	(i)	 	the Vendor has no reason to believe that the Company will be unable to
complete and fulfil each of the Relevant Documents by the due date and in accordance
with its terms;

	 	(ii)	 	the Company is in the possession or in the control of each Relevant
Document;

	 	(iii)	 	so far as the Vendor is aware, there are no written or oral agreements
that derogate from the obligations of any person other than the Company or increase
the obligations of the Company under the Relevant Documents;

	 	(iv)	 	each Relevant Document has been validly executed by the Company, is valid
and subsisting, has not been terminated and is fully enforceable against the Company
and, to the Vendor’s knowledge, the other parties to such agreement in accordance
with its terms;

 

31

 

	 	(v)	 	none of such Relevant Documents is subject to a Security Interest granted
or created by the Company or the Vendor Group Companies other than under the terms of
the Relevant Document;

	 	(vi)	 	to the Vendor’s knowledge, there is no and has not been, at any time, any
breach of, or any default in the performance of, the terms of any such Relevant
Documents by any person other than the Company nor are there any circumstances likely
to give rise to such breach or default. The Company has not granted any time or
indulgence, or waived any right, in relation to any Relevant Document and, in
particular, but without prejudice to the generality of the foregoing, all amounts due
and payable under such agreements have been duly paid in full on, or within a
reasonable period of, the due date for payment of the same;

	 	(vii)	 	so far as the Vendor is aware, the Company has fulfilled all of its
obligations and performed and observed all warranties, undertakings, covenants and
agreements on its part to be fulfilled, performed and observed under each Relevant
Document;

	 	(viii)	 	no notice of any intention to terminate, repudiate, rescind, modify or disclaim any
provision of any Relevant Document has been given by the Company or, so far as the
Vendor is aware, received from a person other than the Company by the Company in
respect of any Relevant Document;

	 	(ix)	 	so far as the Vendor is aware, the Company has paid all Taxes, duties,
imposts and other charges payable in respect of the Relevant Documents so far as such
Taxes, duties, imposts and other charges fall upon the Company and have become due
and payable;

	 	(x)	 	all necessary licences, approvals and consents required by the Company
prior to the entry into of each of the Relevant Documents and for their continuation
were duly obtained and are subsisting and, to the Vendor’s knowledge, no
circumstances have arisen that may lead to withdrawal or failure to renew, if
applicable, of any such licence, approval or consent;

	 	(xi)	 	there are no disputes or outstanding claims pending or, to the Vendor’s
knowledge, threatened against the Company under the Relevant Documents and, to the
Vendor’s knowledge, no person is entitled to make, or has threatened to make, a claim
against the Company in respect of any representation, breach of condition or warranty
or other express or implied term relating to any of the Relevant Documents and no
matter exists that would or might enable a person other than the Company to make such
a claim or raise a set-off, deduction, withholding or counterclaim in any action for
breach of any Relevant Document or otherwise give any person other than the Company
the right to withhold or delay payment of any sum due from it under the terms of the
Relevant Document or the performance of any of its obligations thereunder;

	 	(xii)	 	so far as the Vendor is aware, no person (other than the parties to the
Relevant Documents) has any rights (including any Security Interests) in respect of
any such Transaction Documents or the assets the subject thereof;

	 	(xiii)	 	the execution of this Agreement by the Vendor and the exercise of its rights and
performance of its obligations under the Agreement does not constitute and will not
result in any breach of any Relevant Document or other agreement or treaty to which
the Vendor or the Company are a party;

 

32

 

	 	(xiv)	 	the obligations expressed to be assumed by the Vendor in this Agreement
are legal and valid obligations, binding on them in accordance with the terms of this
Agreement and no limit on any of their powers will be exceeded as a result of the
transaction contemplated by this Agreement or the performance by the Vendor, of its
obligations herein; and

	 	(xv)	 	so far as the Vendor is aware, no Insolvency Event has occurred in relation
to any third party to any Relevant Documents.

	(c)	 	No powers of attorney

There are in force no powers of attorney given by the Company nor any other authority
(express, implied or ostensible) given by the Company to or in favour of any person (as
agent or otherwise) to enter into any agreement, contract or commitment or to do anything
on their behalf except as set out in the Disclosure Schedule. The Disclosure Schedule
sets out details of all persons who have authority to bind the Company in the ordinary
course of their business.

	(d)	 	Change of control

Neither the sale of the Interests hereunder nor any change in the management of the
Company as a result of this Agreement will:

	 	(i)	 	entitle any person to modify or terminate any Relevant Document or other
arrangement with the Company;

	 	(ii)	 	result in the breach by the Companies under any of the terms, conditions or
provisions of any Relevant Document or other instrument to which the Company is now a
party;

	 	(iii)	 	result in any present or future Indebtedness becoming due and payable or
capable of being declared due and payable prior to its stated maturity; or

	 	(iv)	 	entitle any person to receive from the Company any finder’s fee, brokerage
or other commission in connection with the sale of the Interests.

	(e)	 	Offers and tenders

No offer or tender or similar arrangement given or made by the Company is capable of
giving rise to an agreement solely by the unilateral act of any person other than the
Company.

	(f)	 	Joint Ventures etc

The Company does not and has not agreed to, act or carry on business in partnership with
any other person and is not and has not agreed to act or become a member of any joint
venture, consortium, corporate or unincorporated body, association or undertaking.

	(g)	 	Competition/Anti-trust

The Company is not party to any practice, arrangement or agreement that infringes or is
likely to require registration or notification under any relevant anti-trust or
competition law.

 

33

 

	(h)	 	Restrictive practices

The Company is not and has not been a party to any agreement, arrangement, understanding
or practice restricting the freedom of the Company to carry on the whole or any part of
their business in any place in such manner as they think fit or to provide or take goods
and/or services by such means and from and to such persons and into or from such places as
they may from time to time think fit and/or to compete in any area or in any field or with
any person.

	(i)	 	Directors or Officers

The management of the Company is vested exclusively in its members. The Vendor is, and
the Purchaser shall be upon the Closing, the sole member of the Company with, in its
capacity as sole member, authority to make all decisions and take all actions for the
Company as, in its sole discretion, it shall deem necessary and appropriate to enable the
Company to carry out any lawful activity, including but not limited to carrying on the
acquisition, ownership, operation and disposition of oceangoing vessels. Notwithstanding
its authority to do so as sole member of the Company, the Vendor has not appointed or
elected any individuals to officer positions of the Company.

	4	 	Financial Arrangements

	(a)	 	Indebtedness

Save as Disclosed, the Company does not have outstanding nor has it incurred or agreed to
incur any Indebtedness (including, without limitation, any indebtedness for moneys
borrowed or raised under any acceptance credit, bond, rate, bill of exchange or commercial
paper, finance lease, hire purchase agreement, trade bills, forward sale or purchase
agreement or conditional sale agreement or other transaction having the commercial effect
of a borrowing).

	(b)	 	Financing Arrangements, Collateral Transfer Arrangements

The sale by the Vendor and the purchase by the Purchaser of the Interests are subject to
the Financing Arrangements and further to the completion of the Collateral Transfer
Arrangements. These arrangements are reflected in the Finance Documents.

	(c)	 	Loans by the Company

The Company has not made any loans to the Vendor, any Vendor Group Companies or any third
party.

	(d)	 	Debts

The Company has not factored any of its debts. There are no debts owing to the Company.

	(e)	 	No guarantee or Security Interests

No guarantee or Security Interest has been given or entered into by the Company or any
third party in respect of Indebtedness or other obligations of the Company and no
guarantee or
Security Interest has been given or entered into by the Company in respect of any other
person.

 

34

 

	(f)	 	No indemnities given by the Company

	 
	 	 	The Company is not responsible (including on a contingent basis) for the indebtedness, or
for the default in the performance of any obligation, of any person nor are they party to
any option or pre-emption right or any guarantee, suretyship or any other obligation
(whatever called) to pay, purchase or provide funds (whether by advance of money, the
purchase of or subscription for shares or other securities or the purchase of assets or
services or otherwise) for the payment of, or as an indemnity against the consequence of
default in the payment of, any indebtedness of any person.

	 
	(g)	 	Bank accounts

	 
	 	 	Details of all bank accounts of the Company, and particulars of the balances of all the
Company’s bank accounts as at a date not more than 2 (two) Business Days before the date
of this Agreement, have been disclosed to the Purchaser, and the Company has no other bank
accounts. Since the date of such particulars, there have been no material payments out of
any such bank accounts, except for routine payments in the ordinary course of business
consistent with past practices.

	 
	5	 	Assets, Liabilities and other Arrangements

	 
	(a)	 	No other assets and liabilities

	 
	 	 	The Company has no assets other than the Vessel and the Company has no liabilities other
than those arising in connection with the Transaction Documents and as set forth in the
Disclosure Schedule and, save for its obligations under the Transaction Documents, there
are no agreements or arrangements to which the Company is a party that increase the
obligations of the Company under the Transaction Documents or that create or include any
other obligation that might be binding on the Company.

	 
	(b)	 	Business activity

	 
	 	 	The only business activity of the Company since incorporation or formation has been the
acquisition, ownership, and operation of the Vessel.

	 
	6	 	Properties

	 
	 	 	The Company does not own, occupy or use any real property.
7 Insurance

	 
	 	 	The Company maintains the policies of insurance listed in the Disclosure Schedule and
attached to the Disclosure Schedule, each of which is in full force and effect and, to the
Vendor’s knowledge, not subject to being avoided for any reason.

	 
	8	 	Litigation and other Disputes

	 
	(a)	 	No proceedings

	 
	 	 	The Company is not, and, to the Vendor’s knowledge, no director or officer of the Company
(in relation to the Company’s affairs or, if resolved in a manner adverse to such director
or officer, could result in a materially adverse effect on the Company’s business) is,
engaged in or a party to any dispute, litigation, arbitration, prosecution or other legal
proceedings or in any proceedings or hearings before any statutory or governmental body,
department, board or agency, nor are any of the foregoing pending or, to the Vendor’s
knowledge, threatened or expected either against or by the Company, and, to the Vendor’s
knowledge, there is no fact or circumstance or any other form of written demand in
existence that might give rise to the same, or form the basis of any criminal prosecution
against the Company.

 

35

 

	(b)	 	No orders or judgements

	 
	 	 	There is no order, decree or judgement of any court, tribunal or any governmental agency
of any country outstanding against the Company or, to the Vendor’s knowledge, any person
for whose acts the Company may be vicariously liable, and, to the Vendor’s knowledge,
there are no circumstances likely to give rise to vicarious liability of the Company, and
no injunction has been granted against the Company.

	 
	(c)	 	No unlawful acts

	 
	 	 	The Company has not committed, or been prosecuted for, any breach of a statutory or
regulatory duty or any tortious or other criminal or unlawful or unauthorised act that
could reasonably be expected to lead, or has led, to a claim for damages or an injunction
or other order of a court or tribunal of competent jurisdiction being made against it, and
there are no circumstances likely to give rise to such a breach or act.

	 
	9	 	Compliance with Legal Requirements

	 
	(a)	 	Compliance by Company

	 
	 	 	The Company has, so far as the Vendor is aware, complied and is continuing to comply in
all material respects with all relevant legislation and regulations and guidelines in any
part of the world applicable to it and/or its business and/or its assets.

	 
	(b)	 	Ultra vires

	 
	 	 	The Company is empowered and duly qualified to carry on business in all jurisdictions in
which its present business is now carried on and has not entered into any ultra vires
transaction.

	 
	(c)	 	Returns

	 
	 	 	All returns, particulars, resolutions and other documents required to be filed with or
delivered to the Registrar of Corporations in the Republic of the Marshall Islands by the
Company have been properly prepared and so filed or delivered.

	 
	(d)	 	Limited Liability Company Agreement

	 
	 	 	The Limited Liability Company Agreement of, and all resolutions passed by, the Company and
all other legal requirements concerning the Company have been complied with. A copy of the
Company’s Limited Liability Company Agreement has been provided to the Purchaser, which is
complete and accurate in all material respects, has attached thereto or incorporated
therein copies of all resolutions and other documents required by law to be so attached or
incorporated, and fully sets out the rights and restrictions attaching to the Interests.

 

36

 

	(e)	 	Books and records

	 
	 	 	The statutory books (including all registers and minute books whether electronic or
otherwise), books of account and other statutory records of the Company have been properly
and accurately written up or maintained in accordance with all applicable laws and are up
to date (but not including the date of the Agreement) and comprise complete and accurate
records of all information required to record therein other than to the extent that they
are not material to the business of the Company. The Company has not received any notice
or allegation that any of the statutory books, books of accounts or other records of
whatsoever kind of the Company are inaccurate or incomplete or should be rectified.

	 
	(f)	 	Company’s name

	 
	 	 	The Company does not use or otherwise carry on business under any name other than its full
corporate name. The Company has the full right to use its corporate name without
restriction, and the Company and the Vendor are not aware of any actual or threatened
challenge to the use of that name in respect of the business of the Company or any claim
that any such use infringes any rights of any third party.

	 
	(g)	 	Consents and licences

	 
	 	 	The Company holds any and all licences (including statutory licences), permissions,
authorisations, consents, registrations and exemptions required by the Company for the
operation of its business as now carried on, and, to the Vendor’s knowledge, none of these
is subject to revocation or cancellation for any reason.

	 
	(h)	 	No penalties or fines

	 
	 	 	The Company nor any of its officers (or agents during the course of their duties) have
committed or omitted to do any act or thing that has given or could give rise to a
material claim, fine, penalty or other liability, at law or in equity, in respect of the
physical or environmental condition of any of their fixed or moveable assets, real
property or products.

	 
	(i)	 	No investigations and inquiries.

	 
	 	 	No investigations, inquiries or reviews by or on behalf of any
governmental or other body in respect of the Company or its business
or assets are pending or, to the Vendor’s knowledge, in existence or
have been conducted or threatened, and there are no circumstances that
might give rise to such investigation, inquiry or review.

	 
	10	 	Employment

	 
	 	 	The Company does not, and has never had any employees and there are no arrangements
(written or otherwise) under which remuneration or benefit or other sum whatsoever is paid
or given to any person (including any officer or consultant of the Company).

 

37

 

	11	 	Taxation

	 
	(a)	 	Tax Residence.

	 	(i)	 	The Company was and had always been resident in The Marshall Islands for
the purposes of Taxation until August 1, 2007, at which time it became resident in
The Bahamas for the purposes of Taxation until February 29, 2008, at which time it
became resident in Bermuda for the purposes of Taxation, and the Company has never
been resident in any other country for the purposes of Taxation or treated as so
resident for the purposes of any double taxation agreement.

	 
	 	(ii)	 	The Company has never traded through a branch, agency or permanent
establishment situated outside The Marshall Islands, The Bahamas or Bermuda.

	 
	 	(iii)	 	No circumstances exist whereby a person not resident in The Marshall
Islands, The Bahamas or Bermuda is assessable and chargeable to tax in the name of
the Company.

	(b)	 	Disclosures, Notices, Returns, Clearances and Records.

	 	(i)	 	All notices, reports, disclosures, accounts, computations, statements,
assessments, registrations, de-registrations and any other information that ought to
have been made or supplied by or in respect of the Company for any Taxation purposes
have been made or supplied on a proper basis, were punctually submitted, were
accurate and complete when submitted and remain accurate and complete and are not the
subject of any dispute, enquiry or investigation with any Taxation Authority, and, to
the Vendor’s knowledge, there are no present circumstances that are likely to give
rise to any such dispute, enquiry or investigation.

	 
	 	(ii)	 	No action has been taken by the Company in respect of which any consent or
clearance from any Taxation Authority was required except in circumstances where such
consent or clearance was validly obtained, and no conditions were attaching thereto.

	 
	 	(iii)	 	The Company has made and submitted each claim, disclaimer, election,
notice and consent to have been made and submitted, and details of all such claims,
disclaimers, elections, notices and consents are set forth in the Disclosure
Schedule.

	 
	 	(iv)	 	The Company has never been subject to any enquiry, visit, audit,
investigation or discovery order by any Taxation Authority nor, to the Vendor’s
knowledge, are there any circumstances existing that make it likely that any such
enquiry, visit, audit, investigation or discovery order will be made in the next 12
months.

	 
	 	(v)	 	The Disclosure Schedule sets out details of all notices given by any
Taxation Authority to or in relation to the Company, the provisions of which remain
in force.

	 
	 	(vi)	 	The Company has sufficient records relating to past events to permit
accurate calculation of the Taxation liability or relief that would arise upon a
disposal or realisation on completion of each asset owned by the Company before
Closing.

	 
	 	(vii)	 	Except as set out in the Disclosure Schedule, the Company’s Taxation
affairs are not dependent on or subject to any concession, agreement or other formal
or informal arrangement with any Taxation Authority.

 

38

 

	(c)	 	All Tax Paid

	 	(i)	 	All Taxation for which the Company is liable and that ought to have been
paid has been paid on a timely basis to the appropriate Taxation Authority.

	 
	 	(ii)	 	The Company has not paid, within the three years ending on the date of this
Agreement, nor will become liable to pay, any interest, penalty, fine or surcharge to
any Taxation Authority.

	 
	 	(iii)	 	The Company has not received from any Taxation Authority (and has not
subsequently repaid to or settled with that Taxation Authority) any payment to which
it was not entitled or any notice in which its liability to Taxation was understated.

	(d)	 	Stamp Duty

	 
	 	 	All documents that are in the possession of the Company or under its control or to which
the Company is a party and that attract stamp duty have been properly stamped, and the
Company has duly paid all stamp duty to which it is, has been or may be made liable, and
there is no liability for any penalty in respect of such duty nor, to the Vendor’s
knowledge, are there any circumstances or transactions to which the Company is or has been
a party, which may result in the Company becoming liable for any such penalty.

	 
	(e)	 	U.S. Tax Classification

	 
	 	 	The Company is classified for United States federal income tax purposes as a disregarded
entity pursuant to Treas. Reg. Section 301.7701-3. Neither the Vendor nor the Company
will take any action to change the U.S. federal income tax classification of the Company.

	 
	12	 	Miscellaneous

	 
	(a)	 	No broker’s fees

	 
	 	 	No one is entitled to receive from the Company any finder’s fee, brokerage, or other
commission in connection with the purchase of the Interests.

	 
	(b)	 	Effect of entering into this Agreement

	 
	 	 	Compliance with the terms of this Agreement or Closing does not and will not:

	 	(i)	 	conflict with or result in the breach of or constitute a default under any
of the terms, conditions or provisions of:

	 	(A)	 	any agreement or instrument to which the Company is now a
party, including the Transaction Documents; or

	 
	 	(B)	 	The Company’s Limited Liability Agreement or give rise to
or cause to become exercisable any right of pre-emption or right of first
refusal; or

	 
	 	(C)	 	any loan to or mortgage created by the Company or any lien,
lease, order, judgment, award, injunction, decree, ordinance or regulation or
any other restriction of any kind or character to which any property of the
Company is subject or by which the Company is bound;

	 	(ii)	 	result in any present or future Indebtedness becoming due or capable of
becoming due and payable prior to its stated maturity;

 

39

 

	 	(iii)	 	relieve any other party to an agreement or arrangement with the Company,
including the Transaction Documents, of its obligations thereunder (whether
contractual or otherwise) or enable it to vary or terminate its rights or obligations
thereunder or determine any right or benefit enjoyed by the Company or to exercise
any right, whether under an agreement with, or otherwise in respect of, the Company;

	 
	 	(iv)	 	result in the creation or imposition of any Security Interest on any assets
of the Company;

	 
	 	(v)	 	cause the Company to lose the benefit of any right or privilege it
presently enjoys;

	 
	 	(vi)	 	cause any person who normally does business with the Company not to
continue to do so on the same basis as previously; or

	 
	 	(vii)	 	cause any licence or authority necessary or desirable for the continuation
of the Company’s respective business to be determined or not renewed or continued or
renewed on less favourable terms.

	(c)	 	Accurate information provided

	 
	 	 	All information given by the Vendor or any Vendor Group Companies or officials or
professional advisers of the Company or the Vendor to any of the directors, officials or
professional advisers of the Purchaser in the course of negotiations leading to this
Agreement, taken as a whole, was, when given, and remains and will at Closing be true and
accurate in all material respects, and there is no matter or fact that has not been
disclosed to the Purchaser that renders any such information untrue or misleading in any
material respect.

	 
	(d)	 	Disclosure Schedule etc accurate

	 
	 	 	All information contained in the Disclosure Schedule is true, complete and accurate in all
respects and nothing has been omitted and, there is no matter or fact, which renders any
such information untrue, inaccurate, incomplete or misleading in any material respect.

	 
	(e)	 	All information disclosed

	 
	 	 	All information relating to the Company that the Vendor knows or should reasonably know
and that is material to be known by the Purchaser in the context of the sale of the
Interests has been disclosed to the Purchaser and, to the best of the knowledge,
information and belief of the Vendor, there are no other facts or matters undisclosed to
the Purchaser that could reasonably be expected to have a material adverse effect on the
Company or the Interests.

	 
	13	 	Insolvency

	 
	(a)	 	No Insolvency event

	 
	 	 	No Insolvency Event has occurred in relation to the Company and no events or circumstances
have arisen that entitle or could entitle any person to take any action, appoint any
person, commence proceedings or obtain any order instigating an Insolvency Event.

 

40

 

	14	 	The Vessel

	 
	(a)	 	Vessel Commitments

	 
	 	 	In relation to the Vessel:

	 	(i)	 	the Vessel is properly registered in the name of the Company under and
pursuant to the flag and law of the Bahamas and all fees due and payable in
connection with such registration have been paid;

	 
	 	(ii)	 	the Vessel is entered with Det Norske Veritas (or another classification
society of like standing) and has the highest classification rating issued by such
society for a vessel of the type, age and class of the Vessel;

	 
	 	(iii)	 	the Vessel is in class without any recommendations or notation as to class
or other requirement of the relevant classification society, and if the Vessel is in
a port, it is in such condition that it can not be detained by any port state
authority or the flag state authority for any deficiency;

	 
	 	(iv)	 	the Vessel is owned free of all maritime liens, encumbrances and mortgages
except those that have been Disclosed in the Disclosure Schedule and accepted by the
Purchaser and the terms of any charters that continue beyond the Closing Date,
mortgages and loan documents do not prohibit the sale of the Company;

	 
	 	(v)	 	the Vessel has been maintained in a proper and efficient manner in
accordance with internationally accepted standards for good ship maintenance, is in
good operating order, condition and repair and is seaworthy and all repairs made to
the Vessel during the last two years and all known scheduled repairs due to be made
and all known deficiencies have been Disclosed in the Disclosure Schedule;

	 
	 	(vi)	 	the Vessel is not:

	 	(A)	 	under arrest or otherwise detained;

	 
	 	(B)	 	other than in the ordinary course of business, in the
possession of any person (other than her master and crew) or subject to a
possessory lien; or

	 
	 	(C)	 	other than in the ordinary course of business, subject to
any other lien;

	 	(vii)	 	the Vessel complies in all material respects with all laws, the
requirements of any government agency having jurisdiction over the Vessel, the
provisions of all international conventions and the provisions of the rules and
regulations issued under international conventions applicable to that Vessel;

	 
	 	(viii)	 	the Vessel is supplied with valid and up-to-date safety, safety construction,
safety equipment, radio, loadline, health, tonnage, trading and other certificates or
documents as may for the time being be prescribed by the law of the flag of the
Vessel or of any other pertinent jurisdiction, or that would otherwise be deemed
necessary by a shipowner acting in accordance with internationally accepted standards
for good ship management and operations;

	 
	 	(ix)	 	no blacklisting or boycotting of any description whatsoever has been
applied or currently exists against or in respect of the Vessel; and

	 
	 	(x)	 	the Vessel has been delivered by the Company to and accepted on an
unconditional basis by the Charterer for service under and in accordance with the
terms and conditions of the Charter.

 

41

 

Schedule 4: The Vessel

Schedule 4

The Vessel

	 	 	 
	Vessel
	 	“ASHKINI SPIRIT”
	Built
	 	2003
	Yard
	 	Ulsan, Korea
	Class
	 	DNV
	Flag
	 	Bahamas
	Place of Registration
	 	Nassau
	Call sign
	 	C6WJ9
	IMO (Registration) No.
	 	9239484
	Grt/Nrt
	 	84789/53755

 

42

 

Schedule 5:
The consideration Formula

Schedule 5

The Consideration Formula

	 	 	 	 	 
	Fair Market Value of Vessel:
	 	$	57,000,000	 
	Plus Fair Market Value of Charter:
	 	NA	*
	Less Company’s debt outstanding under Facility Agreement on
Closing Date (April 7, 2008)
	 	$	Nil	 
	Equals Consideration:
	 	$	57,000,000	 

	 	 	 
	*	 	The Vessel trades in Gemini Tankers Suezmax Pool, and its charter revenue is accordingly pooled
with spot income from other vessels in the pool, making charter value irrelevant.

 

43

 

EXECUTION PAGE

	 	 	 	 	 
	Executed by
	 	 	)	 
	TEEKAY CORPORATION acting by
	 	 	)	 
	 
	 	 	)	 
	 
	 	 	 	 
	Executed by
	 	 	)	 
	TEEKAY TANKERS LTD. acting by
	 	 	)	 
	 
	 	 	)	 

 

44

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]