Document:

Exhibit 10.13

 

Dated           [                                 ]

 

 

[                                                        ]

 

 

-and-

 

 

GOLAR MANAGEMENT (UK) LIMITED

 

 

 

MANAGEMENT AGREEMENT

 

 

relating to “[                   ]”

 

 

CONTENTS

 

	
1
    	
INTERPRETATION
    	
1
    
	
 
    	
 
    	
 
    
	
2
    	
APPOINTMENT
    	
1
    
	
 
    	
 
    	
 
    
	
3
    	
DUTIES OF MANAGER
    	
2
    
	
 
    	
 
    	
 
    
	
4
    	
MANAGEMENT
    	
2
    
	
 
    	
 
    	
 
    
	
5
    	
EMPLOYMENT OF AGENTS AND SUB-CONTRACTORS
    	
3
    
	
 
    	
 
    	
 
    
	
6
    	
ANCILLARY MANAGEMENT SERVICES
    	
4
    
	
 
    	
 
    	
 
    
	
7
    	
INSURANCE
    	
4
    
	
 
    	
 
    	
 
    
	
8
    	
ACCOUNTS
    	
5
    
	
 
    	
 
    	
 
    
	
9
    	
TERMINATION
    	
5
    
	
 
    	
 
    	
 
    
	
10
    	
REMUNERATION
    	
5
    
	
 
    	
 
    	
 
    
	
11
    	
MANAGEMENT EXPENSES
    	
6
    
	
 
    	
 
    	
 
    
	
12
    	
INDEMNITY AND LIMITATION OF LIABILITY
    	
7
    
	
 
    	
 
    	
 
    
	
13
    	
PROPER LAW; THIRD PARTIES
    	
7
    
	
 
    	
 
    	
 
    
	
14
    	
ARBITRATION
    	
8
    
	
 
    	
 
    	
 
    
	
15
    	
NOTICES
    	
8
    
	
 
    	
 
    	
 
    
	
SCHEDULE 1
    	
10
    
	
 
    	
 
    	
 
    
	
SCHEDULE 2
    	
11
    

 

 

THIS AGREEMENT is made as of [                                 ]

 

BY and BETWEEN

 

(1)                                 [                                 ], a company incorporated in [                                 ] whose registered office is at [                                 ] (the “Owner”);  and

 

(2)                                  GOLAR MANAGEMENT (UK) LIMITED, a company registered in England and Wales with Company No. 4396172  whose registered office is 30 Marsh Wall, London E14 9TP (the “Manager”)

 

WHEREAS:

 

(A)                              the Owner is or is to be the owner or disponent owner of the Ship (as hereinafter defined);

 

(B)                                it is the intention of the parties that the Manager shall be entrusted with the management of the Ship and that the Manager shall further provide the Owner with certain other management services subject always to the overriding supervision and authority of the Owner.

 

NOW IT IS HEREBY AGREED as follows:

 

1                                         INTERPRETATION

 

1.1                               In this Agreement, unless the context otherwise requires:

 

“associated company” means any company which is for the time being a subsidiary of the Manager or a holding company of the Manager or a subsidiary of such a holding company or any other company effectively under the same management and control as the Manager;

 

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

 

“Reserved Matters” means each of the matters set out in schedule 2, authority to decide which is explicitly reserved to the Owner; and

 

“the Ship” means the Ship referred to in schedule 1 or any other ship subsequently acquired or bareboat chartered by the Owner, commercial and /or other management of which is entrusted to the Manager on the terms set out in this Agreement.

 

1.2                               References to clauses and schedules are to clauses of and schedules to this Agreement and headings shall be ignored in interpreting this Agreement.

 

2                                         APPOINTMENT

 

2.1                              The Owner hereby confirms the appointment of the Manager and the Manager hereby confirms its agreement to act as manager of the Ship and, at the request of the Owner (but subject to the Manager’s approval of such request), to provide services to the

 

 

Owner as from the delivery of the Ship to the Owner upon the terms hereinafter set forth.

 

3              DUTIES OF MANAGER

 

3.1          The Manager undertakes to use its best endeavours:

 

(a)                                  to manage the Ship on behalf of the Owner in accordance with sound commercial and technical ship management practice and, so far as reasonably practicable, in accordance with the policies and instructions from time to time communicated to the Manager by the Owner; and

 

(b)                                 to protect and promote the interests of the Owner in all matters relating to the efficient trading operation and commercial management of the Ship,

 

Provided however that the Manager:

 

(i)                                     shall have no power to take any decision on, or to implement any steps necessary to give effect to, any Reserved Matter without the prior written approval of the Owner (although the Manager is authorised and empowered to, and will at the Owner’s request, make submissions to the Owner as to the advisability or otherwise of any proposal or opportunity relating to any Reserved Matter);

 

(ii)                                  shall not be required so to exercise its powers hereunder as to give preference in any respect to the Owner;

 

(iii)                               shall not be restricted from carrying on or (whether as managers or otherwise) being concerned or interested in carrying on any business which is or may be similar to or competitive with the business presently or at any time carried on by the Owner; and

 

(iv)                              shall not be answerable for the consequences of any decision or exercise of judgement taken or made in the exercise of its powers hereunder which was taken or made honestly and in good faith.

 

4                                         MANAGEMENT

 

4.1                               The Manager shall use its best endeavours to provide (or procure that the other persons appointed pursuant to clause 5.1(b) shall provide) the management services specified hereunder and the Manager shall, subject always to proviso (i) to clause 3.1, have power in the name of the Owner or otherwise on the Owner’s behalf to do all things which it or they may deem to be expedient or necessary for the provision of the said services or otherwise in relation to the proper and efficient commercial management of the Ship:

 

(a)                                  arranging for the supervision of the maintenance, survey and repair of the Ship as required for the purpose of classification and to keep the Ship in good and efficient condition;

 

(b)                                the provision of all applicable documentation and compliance with all applicable regulations that may be required from time to time including, but not limited to, all classification, statutory and IMO documentation and regulations;

 

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(c)                                  engagement and provision of crews (masters, officers, cadets and ratings) and attendance to all matters pertaining to discipline, wages and wage negotiations labour relations, welfare and amenities of such crews;

 

(d)                                 arrangement for victualling and storing of the Ship and placing of contracts relative thereto;

 

(e)                                  arrangement of bunker, fuel and lubricating oil contracts for the Ship;

 

(f)                                    the appointment of agents and sub-agents for the Ship;

 

(g)                                 arrangement for the loading and discharging of the Ship;

 

(h)                                 control and management of inventories of spare parts, lube oils, bunkers, other fuel supplies and provisions;

 

(i)                                     the giving of instructions to the master and officers of the Ship;

 

(j)                                     arrangement of all insurances in connection with the Ship (including hull, machinery, freights, earnings and disbursements) against usual marine and war risks;

 

(k)                                  arrangements for entry of the Ship in protection and indemnity, defence and other such associations;

 

(l)                                     handling and settling all insurance, average, salvage and other claims in connection with the Ship;

 

(m)                               receipt and collection on behalf of the Owner of all hire, freight revenue or other monies of whatsoever kind to which the Owner may from time to time be entitled arising out of the employment of or otherwise in connection with the Ship;

 

(n)                                 seeking employment for the Ship and negotiating and administering charter parties or other contracts relating to the employment thereof and advice and instructions to masters relating to the interpretation of charterparties and all matters relating thereto;

 

(o)                                 seeking, negotiating (including any security required in connection therewith) and administering (including hedging currency or interest exposure) any loan or other financing required or requested by the Owner in connection with the Ship (including any security required in connection therewith);

 

(p)                                 negotiating contracts for the technical management and crewing of the Ship; and

 

(q)                                 payment on behalf of the Owner of all expenses incurred in and about provision of the foregoing services or otherwise in relation to the proper and efficient management of the Ship Provided however that the Manager shall not be obliged to (but may at its discretion) pay any such expense unless and until the Manager shall have received from the Owner an amount equivalent thereto pursuant to the provisions of clause 11.2(a) or shall have sufficient funds available to pay such expense from any float fund established pursuant to clause 11.5.

 

5                                         EMPLOYMENT OF AGENTS AND SUB-CONTRACTORS

 

5.1                               The Manager shall (without prejudice to the generality of the powers vested in it as aforesaid) be entitled (but not bound):

 

(a)                                  to employ on behalf of the Owner any such agents or ship or insurance brokers as it may deem fit with liberty to appoint any associated company in any such capacity;

 

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(b)                                 to employ on behalf of the Owner consultants and other experts to supervise or advise in relation to the trading operation, commercial and technical management of the Ship;

 

(c)                                  if instructed by the Owner, to bring or defend on behalf of the Owner actions suits or proceedings in connection with all matters hereby entrusted to the Manager; and

 

(d)                                 if instructed by the Owner, to obtain legal advice in relation to disputes or other matters affecting the interests of the Owner in respect of the Ship.

 

5.2                               The Manager shall (without prejudice to the generality of the powers vested in it as aforesaid) be entitled (but not bound), with the prior written approval of the Owner (which shall not be unreasonably withheld), to sub-contract any or all of the services specified in clauses 4.1 or 5.1 provided however that in the event of any such sub-contracting the Manager shall assume no responsibility for the due performance by the sub-contractor of any of the sub-contracted services so long as the Manager exercised reasonable care in appointing the sub-contractor.

 

6                                         ANCILLARY MANAGEMENT SERVICES

 

6.1                               The Manager shall if so required upon reasonable notice also provide (or procure that persons appointed pursuant to clause 5  shall provide) any or all of the following ancillary services, subject always to proviso (i) to clause 3.1 and to the parties hereto having first agreed in writing the terms governing the provision of such ancillary services and subject to such additional fee payable (and/or such other means of remuneration), if any, as may be agreed:

 

(a)                                  advising the Owner and consulting with shipbuilders and other contractors in relation to the design specification and contract terms of any proposed newbuilding;

 

(b)                                 supervising the construction, equipping and commissioning of any such newbuilding; and

 

(c)                                  undertaking specific work studies or other projects in connection with the Ship or in connection with the trading operations of the Ship or otherwise in connection with the Owner’s business or any contemplated development of its business.

 

7                                         INSURANCE

 

7.1                               The Manager shall ensure that in respect of any insurances to be effected by or through the Manager pursuant to clause 4.1 during the period of this Agreement:

 

(a)                                  the Ship is insured and kept insured at the Owner’s expense and upon such terms as may be stipulated in any relevant financing documents for the Ship for not less than its full market value against (i) fire and usual marine risks (including excess risks) (ii) war risks and (iii) protection and indemnity risks (including pollution risks and excess war protection and indemnity risks) on “full-entry” terms with first class insurance companies, underwriters, war risks and protection and indemnity associations;

 

(b)                                 the insurances on the Ship shall name the Manager and any relevant agent or sub-contractor as a co-insured but the Manager and relevant agent or sub-contractor shall not be under any liability in respect of any premiums or calls arising in connection with any such insurances.

 

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8                                         ACCOUNTS

 

8.1                               The Manager shall keep proper books, records and accounts relating to the Ship, and the Owner’s affairs as relevant, and shall make the same available for inspection and audit on behalf of the Owner at such times as may be mutually agreed.

 

8.2                               The Manager shall agree budgets with the Owner and shall prepare and furnish to the Owner quarterly management statements and shall also furnish such other statements or reports as the Owner may from time to time reasonably require.

 

9                                         TERMINATION

 

9.1                               Subject to clause 9.2, the appointment of the Manager having commenced and taken effect as and from the delivery of the Ship to the Owner shall (subject as hereinafter provided) continue for a period of one year from that date and shall thereafter continue indefinitely unless and until determined by either party on or at any time after the date falling one year after the delivery of the Ship to the Owner giving to the other notice in writing to determine the same in which event the appointment shall determine upon the expiration of a period of 30 days from the date upon which such notice was given.

 

9.2                               Notwithstanding clause 9.1 without prejudice to the accrued rights hereunder of either party:

 

(a)                                  the Manager shall be entitled (but not bound) to terminate its appointment forthwith by notice in writing in any of the following events:

 

(i)                                     there is at any time no Ship whose management is governed by the terms of this Agreement and there is not then on order or under construction for the Owner a newbuilding which will upon delivery be entrusted to the management of the Manager; or

 

(ii)                                  any monies payable by the Owner under this Agreement shall not have been duly paid within 90 days of payment having been demanded in writing by the Manager; or

 

(iii)                               if (in the opinion of the Manager) this Agreement has for any reason whatsoever outside the control of the Manager become impossible to perform in such a manner as to enable the Manager properly to carry out the services (or any of them) hereby contracted for; and

 

(b)                                 either party may by notice in writing to the other forthwith terminate the appointment if a meeting be convened or any petition be presented or any order be made or resolution be passed for the winding up of the other and/or its holding company (otherwise than a winding up for the purposes of reconstruction or amalgamation) or if a receiver or administrative receiver be appointed of the undertaking or property of the other or if the other shall suspend payment or cease to carry on business or shall make any special arrangement of or composition with its creditors.

 

10                                  REMUNERATION

 

10.1                        The remuneration of the Manager for its services as Manager under this Agreement shall be as follows:

 

(a)                                  the Owner shall pay to the Manager a basic annual fee as established by separate letter agreement which shall be payable by equal quarterly installments in advance and be dealt with proportionately for any period less than a year; and

 

5

 

(b)                                 the remuneration shall commence to be earned as and from the date of the delivery of the Ship to the Owner and there shall be payable on the first day of the calendar month next following such commencement date the quarterly installment in respect of that calendar month plus the proportionate amount due in respect of the period from such commencement date to the day preceding such first day.

 

10.2                        The remuneration payable by the Owner under this Agreement shall be reviewed annually and shall be revised by mutual agreement between the parties.

 

11                                  MANAGEMENT EXPENSES

 

11.1                        Subject to clause 11.3 below, the Manager shall at its own expense provide all office accommodation, equipment, stationery and staff required for the provision of the services hereby contracted for.

 

11.2                        Subject to clause 11.1, the Owner shall (in addition to payment of the remuneration provided for in clause 10):

 

(a)                                  pay to the Manager on demand amounts equivalent to all disbursements and expenses of whatsoever kind which are to be incurred by the Manager or any relevant agent or sub-contractor directly or on behalf of the Owner in connection with the provision of the services hereby contracted for; and

 

(b)                                 reimburse the Manager in respect of all disbursements and expenses of whatsoever kind which are paid by the Manager in connection with the provision of the services hereby contracted for.

 

11.3                        Without prejudice to the generality of the foregoing the Owner shall pay and / or reimburse the Manager for:

 

(a)                                  expenditure incurred or paid in and about the maintenance survey and repair of the Ship and the supervision thereof (whether incurred or paid by the Manager directly or by way of payment to or for account of any relevant agent or sub-contractor);

 

(b)                                 disbursements and expenses of whatsoever kind incurred or paid in connection with the trading operation, victualling, equipment, bunkering and insurance of the Ship (whether incurred or paid by the Manager directly or by way of payment to or for account of any relevant agent or sub-contractor);

 

(c)                                  agency fees;

 

(d)                                 travelling, accommodation and other expenses or allowances incurred or paid in respect of or paid to any officers or servants of the Manager or agents, sub-contractors or consultants employed in accordance with clause 5 in connection with performance of the services hereby contracted for;

 

(e)                                  all communication expenses;

 

(f)                                   any commissions payable to brokers or other third parties in connection with obtaining employment for the Ship;

 

(g)                                 the safe-keeping or custody of any money or other property of the Owner by the Manager.

 

11.4                        The Manager (without prejudice however to its rights under clause 11.2) may in any month during the currency of this Agreement request the Owner to pay to the Manager an amount not exceeding such amount as in the opinion of the Manager will be equal

 

6

 

to the aggregate of all disbursements and expenses to be incurred or likely to be incurred by the Manager or any relevant agent or sub-contractor directly or on behalf of the Owner in the next following month in connection with the provision of the services hereby contracted for and any amount so requested shall be payable by the Owner to the Manager not later than the fifth day of such next following month.

 

11.5

 

(a)                                  The Manager may request the Owner to establish a float fund for the purpose of meeting expenditure requests of the Manager pursuant to this Agreement, in which case, the Owner shall forthwith upon request of the Manager pay to the Manager such amount as the Manager may reasonably specify in such request for the purpose of establishing a float fund from which the Manager shall draw as may be required in order to obtain reimbursement in respect of all disbursements and expenses which are incurred by it as aforesaid.

 

(b)                                 The Manager shall be entitled as often as may from time to time be required to restore the said float up to (but not exceeding) the figure at which it was originally established by transfer of any monies then received and held by the Manager for the Owner’s account and in event that the monies so received and available for transfer are insufficient for the foregoing purpose the Owner shall forthwith on demand pay to the Manager such further sum as may be required.

 

11.6                        The Manager will account to the Owner for all discounts, rebates and commissions received from third parties in connection with the provision of the services hereby contracted for.

 

12                                  INDEMNITY AND LIMITATION OF LIABILITY

 

12.1                        The Owner hereby ratifies and confirms and undertakes at all times to ratify and confirm whatever may be done or caused or purported to be done by the Manager in the course of performing the services hereby contracted for and the Owner hereby undertakes to keep the Manager indemnified and to hold them harmless against all actions, proceedings, claims, demands or liabilities whatsoever which may be brought against or incurred by the Manager in relation to any and everything done or caused to be done as aforesaid UNLESS the same is proved to have resulted solely from the negligence, gross negligence or wilful default of the Manager or their employees, or agents or sub-contractors employed by them in connection with the Ship, in which case (save where the loss, damage, delay or expense has resulted from the Manager’s personal act or omission committed with the intent to cause the same or recklessly and with knowledge or that such loss, damage, delay or expense would probably result) the Manager’s liability for each incident or series of incidents giving rise to a claim or claims shall never exceed a total of ten times the annual management fee payable under this Agreement as revised from time to time.

 

12.2                        Notwithstanding anything that may appear to the contrary in this Agreement, the Manager shall not be liable for any of the actions of the crew, even if such actions are negligent, grossly negligent or wilful, except only to the extent that they are shown to have resulted from a failure by the Manager to discharge their obligations under this Clause in which case their liability shall be limited in accordance with the terms of Clause 12.1.

 

13                                  PROPER LAW; THIRD PARTIES

 

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

 

7

 

13.2                        No third party shall have any rights under this Agreement pursuant to Contracts (Third Parties Rights) Act 1999.

 

14                                  ARBITRATION

 

14.1                        If any dispute or differences shall arise between the parties hereto concerning any matter or thing herein contained or the operation or construction thereof or any matter or thing in any way connected with this Agreement or the rights duties or liabilities of either party under or in connection with this Agreement then and in every such case the dispute or difference shall be referred to a single arbitrator to be appointed by the parties hereto, but in case the parties hereto shall fail to concur in the appointment of a single arbitrator then the reference shall be to two arbitrators one to be appointed by each party hereto and this clause shall be deemed to be a submission to arbitration within the meaning of the Arbitration Act 1996 and any statutory modification or re-enactment thereof for the time being in force and any reference hereunder shall be subject to the provisions relating to arbitration contained in the said Acts with arbitration in London.

 

15                                  NOTICES

 

15.1                        Any notice which either party may require to give to the other party shall be validly given if sent to it

 

(a)                                  in the case of the Owner:

 

[                                 ]

[                                 ]

[                                 ]

[                                 ]

[                                 ]

 

Fax No:                    [                                 ]

Attn:           [                                 ]

 

(b)               in the case of the Manager:

 

Golar Management (UK) Limited

 

30 Marsh Wall, London E14 9TP

 

Fax No:                    [                                 ]

Attn:           [                                 ]

 

or at such other address as may from time to time be notified by one party to the other.

 

15.2                        Notices required to be given in writing may be given by facsimile and shall be confirmed by prepaid airmail letter posted as soon as practicable thereafter.

 

15.3                        Notices shall be deemed to have been received in the case of a facsimile at the time of despatch thereof (provided that if the date of despatch is not a working day in the country of the party to whom such notice or demand is sent it shall be deemed to have been received on the next following working day in the country of the addressee) and in the case of a letter sent by prepaid airmail post on the expiry of 30 days after the same is put into the post.

 

8

 

IN WITNESS whereof the parties hereto have caused this Agreement to be signed on their behalf by their respective duly authorised representatives the day and year first before written

 

 

	
 
    	
 
    
	
For   and on behalf of
    	
For   and on behalf of
    
	
[                                 ]
    	
GOLAR MANAGEMENT (UK) LIMITED
    
	
 
    	
 
    
	
Director   [                                 ]
    	
Director   [                                 ]
    

 

9

 

SCHEDULE 1

 

The Ship

 

	
Name   of Vessel:
    	
[                                 ]
    
	
 
    	
 
    
	
Registered/Legal   Owner:
    	
[                                 ]
    
	
 
    	
 
    
	
Flag:
    	
[                                 ]
    
	
 
    	
 
    
	
Date   Built:
    	
[                                 ]
    
	
 
    	
 
    
	
 
    	
 
    
	
Classification:
    	
[                                 ]
    

 

10

 

SCHEDULE 2

 

Reserved Matters

 

A.                                   The approval of the placing of Hull & Machinery and War Risks insurance in connection with the Ship or the entry of the Ship in a P&I Club.

 

B.                                     The settlement of any insurance, average, salvage or other claim in connection with the Ship in excess of $[             ].

 

C.                                     The approval of the terms negotiated and conclusion of any charter party or other contract for the employment of the Ship other than single voyage charter parties or time charters of less than [      ] months in accordance with the Owner’s chartering policy.

 

D.                                    The approval of the terms negotiated and conclusion of any contract for the purchase of any ship or the approval of the terms negotiated and conclusion of any contract for the design, construction, equipping or commissioning of any newbuilding.

 

E.                                      The approval of the terms negotiated and conclusion of any loan or other financing required or requested by the Owner in connection with the Ship.

 

F.                                      The approval of the terms negotiated and conclusion of any contract for the technical management or crewing of the Ship.

 

G.                                     Any expenses and major repair work which is not included in the Manager’s budget incurred on behalf of the Owner in excess of $[             ]  or its equivalent in any another currency.

 

11Exhibit 10.14

 

Date [·] 2011

 

 

GOLAR LNG LIMITED

as Lender

 

 

-and-

 

 

GOLAR LNG PARTNERS L.P.

as Borrower

 

 

 

FORM OF LOAN AGREEMENT

 

 

relating to

a US$20,000,000 revolving credit facility

 

 

WATSON, FARLEY & WILLIAMS

London

 

 

INDEX

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1
    	
INTERPRETATION
    	
1
    
	
 
    	
 
    	
 
    
	
2
    	
FACILITY
    	
2
    
	
 
    	
 
    	
 
    
	
3
    	
DRAWDOWN
    	
2
    
	
 
    	
 
    	
 
    
	
4
    	
DEFAULT   INTEREST
    	
2
    
	
 
    	
 
    	
 
    
	
5
    	
REPAYMENT,   PREPAYMENT AND CANCELLATION
    	
3
    
	
 
    	
 
    	
 
    
	
6
    	
CONDITIONS   PRECEDENT
    	
3
    
	
 
    	
 
    	
 
    
	
7
    	
REPRESENTATIONS   AND WARRANTIES
    	
3
    
	
 
    	
 
    	
 
    
	
8
    	
UNDERTAKINGS
    	
4
    
	
 
    	
 
    	
 
    
	
9
    	
PAYMENTS   AND CALCULATIONS
    	
4
    
	
 
    	
 
    	
 
    
	
10
    	
EVENTS OF   DEFAULT
    	
5
    
	
 
    	
 
    	
 
    
	
11
    	
COSTS
    	
6
    
	
 
    	
 
    	
 
    
	
12
    	
INDEMNITIES
    	
6
    
	
 
    	
 
    	
 
    
	
13
    	
NO   SET-OFF OR TAX DEDUCTION
    	
7
    
	
 
    	
 
    	
 
    
	
14
    	
ILLEGALITY
    	
7
    
	
 
    	
 
    	
 
    
	
15
    	
TRANSFERS
    	
8
    
	
 
    	
 
    	
 
    
	
16
    	
NOTICES
    	
8
    
	
 
    	
 
    	
 
    
	
17
    	
SUPPLEMENTAL
    	
9
    
	
 
    	
 
    	
 
    
	
18
    	
LAW AND   JURISDICTION
    	
9
    
	
 
    	
 
    	
 
    
	
SCHEDULE 1 DRAWDOWN NOTICE
    	
11
    
	
 
    	
 
    	
 
    
	
EXECUTION PAGE
    	
12
    
				

 

 

THIS AGREEMENT is made on [·] 2011

 

BETWEEN

 

(1)                                  GOLAR LNG LIMITED, a company incorporated in Bermuda whose registered office is at 14 Par La Ville Place, Par La Ville Road, Hamilton, Bermuda (the “Lender”); and

 

(2)                                  GOLAR LNG PARTNERS L.P., a limited partnership formed in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the “Borrower)”.

 

IT IS AGREED as follows:

 

1                                         INTERPRETATION

 

1.1                               Definitions.  In this Agreement:

 

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

 

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

 

(a)                                  the date falling 45 months after the date of this Agreement (or such later date as the Lender may agree with the Borrower); or

 

(b)                                 if earlier, the date on which the Commitment is fully cancelled or terminated;

 

“Available Commitment” means, at any time during the Availability Period, the Commitment less the amount of the Loan at that time;

 

“Business Day”  means a day on which banks are open in London and, in respect of a day on which a payment is required to be made under this Agreement, also in New York City;

 

“Commitment” means $20,000,000 as that amount may be cancelled or terminated in accordance with this Agreement;

 

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

 

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

 

“Drawdown Notice” means a notice in the form set out in Schedule 1 (or in any other form approved by the Lender);

 

“Event of Default” means any of the events or circumstances described in Clause 10.1;

 

“IPO” means the initial public offering of shares in the Borrower to be effected with the National Association of Securities Dealers Automated Quotations (NASDAQ);

 

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

 

“Repayment Date” means, in relation to an Advance, the date falling 6 months after the Drawdown Date for that Advance or, if earlier, the Termination Date; and

 

“Termination Date” means the date falling 48 months after the date of this Agreement.

 

 

1.2                               Clause references.  References in this Agreement to Clauses are, unless otherwise specified, references to clauses of this Agreement.

 

1.3                               References to persons.  References to “person” or “persons” or to words importing persons include, without limitation, individuals, firms, corporations, government agencies, committees, departments, authorities and other bodies, incorporated or unincorporated, whether having distinct legal personality or not.

 

1.4          Clause headings.  Clause headings are for ease of reference only.

 

2                                         FACILITY

 

2.1                               Amount of facility.  Subject to the other provisions of this Agreement, the Lender shall make a revolving credit facility not exceeding $20,000,000 available to the Borrower.

 

2.2                               Purpose of facility.  The Borrower undertakes to use each Advance to finance its general working capital requirements.

 

3                                         DRAWDOWN

 

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

 

3.2                               Availability.  The conditions referred to in Clause 3.1 are that:

 

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

 

(b)                                 the amount of an Advance shall be at least $5,000,000 and shall not exceed the Available Commitment; and

 

(c)                                  the aggregate amount of the Advances shall not exceed the Commitment.

 

3.3                               Drawdown Notice irrevocable.  A Drawdown Notice must be signed by an officer of the Borrower; and once served, a Drawdown Notice cannot be revoked without the prior consent of the Lender.

 

3.4                               Disbursement of Advance.  Subject to the provisions of this Agreement, the Lender shall on each Drawdown Date make each Advance to the Borrower; and payment to the Borrower shall be made to the account which the Borrower specifies in the Drawdown Notice.

 

4                                         DEFAULT INTEREST

 

4.1                               Payment of default interest on overdue amounts.  The Borrower shall pay interest in accordance with the following provisions of this Clause 4 on any amount payable by the Borrower under this Agreement which the Lender does not receive on or before the Termination Date or, if payable on demand, the date on which the demand is served or, if immediately due and payable under this Agreement, the date on which it became immediately due and payable.

 

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

 

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4.3                               Payment of accrued default interest.  Subject to the other provisions of this Agreement, any interest due under this Clause shall be paid on the last day of the period by reference to which it was determined.

 

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

 

5                                         REPAYMENT, PREPAYMENT AND CANCELLATION

 

5.1                               Repayment Date for each Advance.  Each Advance shall be repaid in full on the Repayment Date applicable to it.

 

5.2                               Deemed repayment.  In respect of an Advance, if no repayment is made on the Repayment Date for that Advance then the Advance shall be deemed to have been repaid by a further Advance in the same amount which shall be deemed to have been drawn down on the Repayment Date for the original Advance.  For the avoidance of doubt, this Clause only applies in respect of amounts due on Repayment Dates and not in respect of amounts due on the Termination Date.

 

5.3                               Additional payments on Termination Date.  On the Termination Date, the Borrower shall repay any Advance then outstanding in full and shall additionally pay to the Lender all other sums, if any, then owing or accrued under this Agreement.

 

5.4                               Voluntary prepayment.  The Borrower may prepay the whole (but not part only) of an Advance on giving at least 10 days’ prior written notice to the Lender.

 

5.5                               Effect of notice of prepayment.  A prepayment notice may not be withdrawn or amended without the consent of the Lender and the amount specified in the prepayment notice shall become due and payable by the Borrower on the date for prepayment specified in the prepayment notice.

 

5.6                               Amounts payable on prepayment.  A prepayment shall be made together with any amount payable under Clause 12 or otherwise under this Agreement in respect of the amount prepaid.

 

5.7                               Reborrowing permitted.  Subject to the terms of this Agreement, any amount repaid or prepaid may be reborrowed.

 

5.8                               Effect of notice of cancellation.  The service of a cancellation notice shall cause the amount of the Commitment specified in the notice to be permanently cancelled.

 

6                                         CONDITIONS PRECEDENT

 

6.1                               Conditions.  The Lender’s obligation to make an Advance is subject to the following conditions precedent:

 

(a)                                  that, on or before the service of the first Drawdown Notice, the IPO shall have taken place; and

 

(b)                                that, on the Drawdown Date, but prior to the making of the Advance, no Event of Default has occurred and is continuing or would result from the borrowing of the Advance.

 

7                                         REPRESENTATIONS AND WARRANTIES

 

7.1                               Borrower’s representations and warranties.  The Borrower represents and warrants to the Lender that the following statements are, at the date hereof, true and accurate:

 

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(a)                                  it is duly formed with limited liability under the laws of the Republic of the Marshall Islands and has full power and authority to enter into and perform its obligations under this Agreement;

 

(b)                                 the execution, delivery and performance of this Agreement:

 

(i)                                     have been duly authorised by all necessary corporate action on its part; and

 

(ii)                                  do not contravene any applicable law, regulation or order binding on it or any of its assets or its constitutional documents;

 

(c)                                  neither the execution, delivery and performance by it of this Agreement require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect of, any relevant governmental authority or agency, except such as have been obtained and are in full force and effect; and

 

(d)                                 this Agreement constitutes its legal, valid and binding obligations.

 

7.2                               Survival of representations and warranties.  The representations and warranties given in this Clause 7 shall survive the execution of this Agreement.

 

8                                         UNDERTAKINGS

 

8.1                               General.  The Borrower undertakes with the Lender to comply with the following provisions of this Clause 8 at all times whilst it has any outstanding obligations or liabilities under this Agreement, except as the Lender may otherwise permit.

 

8.2                               Notification of Event of Default.  The Borrower will promptly inform the Lender of any event which constitutes or may constitute an Event of Default or which may adversely affect the Borrower’s ability to perform its obligations under this Agreement.

 

8.3                               Information.  The Borrower will deliver to the Lender such financial or other information in respect of its business and financial status as the Lender may reasonably require including, but not limited to, copies of its unaudited quarterly financial statements and of its audited annual financial statements.

 

9                                         PAYMENTS AND CALCULATIONS

 

9.1                               Currency and method of payments  All payments to be made by the Borrower to the Lender under this Agreement shall be made to the Lender:

 

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

 

(b)                                 in same day Dollar funds; and

 

(c)                                  to such account of the Lender as the Lender may from time to time notify to the Borrower.

 

9.2                              Payment on non-Business Day.  If any payment by the Borrower under this Agreement would otherwise fall due on a day which is not a Business Day:

 

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

 

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

 

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9.3                               Basis for calculation of periodic payments.  Default interest shall accrue from day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year.

 

10                                  EVENTS OF DEFAULT

 

10.1                        Events of Default.  An Event of Default occurs if:

 

(a)                                  the Borrower fails to pay when due any sum payable under this Agreement unless such failure is due to a technical breakdown or communication error in which case the Borrower shall rectify such non-payment within 3 Business Days of it having been notified of the missed payment by the Lender; or

 

(b)                                 any breach by the Borrower occurs of any provision of this Agreement (other than a breach covered by paragraph (a)) which, in the opinion of the Lender, is capable of remedy and which continues unremedied 10 Business Days after receipt by the Borrower of a written request from the Lender that the breach be remedied; or

 

(c)                                  any information given by the Borrower to the Lender in relation to this Agreement proves to be misleading or materially inaccurate or incorrect when made; or

 

(d)                                 any other loan, guarantee or other obligation of the Borrower exceeding $10,000,000 is declared (or is capable of being declared) by the relevant creditor or creditors due prematurely due to a default, to non-payment or any security in respect thereof becomes enforceable; or

 

(e)                                  a lien, arrest, distress or similar event is levied upon or against any substantial part of the assets of the Borrower which is not discharged or disputed in good faith within 10 Business Days after the Borrower has become aware of the same; or

 

(f)                                    a substantial part of the Borrower’s business or assets is destroyed, abandoned, seized, appropriated or forfeited for any reason; or

 

(g)                                 any order shall be made by any competent court or resolution passed by the Borrower for the appointment of a liquidator, administrator or receiver of, or for the winding-up of, the Borrower; or

 

(h)                                 an encumbrancer takes possession of or a receiver is appointed of the whole or, in the opinion of the Lender, any material part of the assets of the Borrower or a distress, execution or other process is levied or enforced upon or sued out against the whole or, in the opinion of the Lender, a material part of the assets of the Borrower; or

 

(i)                                     the Borrower shall stop payment or shall be unable to, or shall admit inability to, pay its debts as they fall due, or shall be adjudicated or found bankrupt or insolvent, or shall enter into any composition or other arrangement with its creditors generally; or

 

(j)                                     any event shall occur which under the law of any jurisdiction to which the Borrower is subject has an effect equivalent or similar to any of the events referred to in Clause 10.1(c), (d) or (e); or

 

(k)                                 the Borrower ceases or suspends or threatens to cease or suspend the carrying on of its business or a part of its business or disposes of or threatens to dispose of a substantial part of its business or assets which, in the opinion of the Lender, is material in the context of this Agreement; or

 

(l)                                     it becomes unlawful for the Borrower to fulfil its obligations under this Agreement; or

 

(m)                               Golar GP LLC ceases to be the General Partner of the Borrower; or

 

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(n)                                 the constitutional documents of the Borrower are amended or varied in any way which is, in the reasonable opinion of the Lender, adverse to its interests in connection with this Agreement.

 

10.2                        Actions following an Event of Default.  On, or at any time after, the occurrence of an Event of Default the Lender may:

 

(a)                                  serve on the Borrower a notice stating that all obligations of the Lender to the Borrower under this Agreement are cancelled; and/or

 

(b)                                 serve on the Borrower a notice stating that the Loan, any accrued default interest and all other amounts owing under this Agreement are immediately due and payable or are due and payable on demand; and/or

 

(c)                                  take any other action which, as a result of the Event of Default or any notice served under paragraph (a) or (b), the Lender is entitled to take under this Agreement or any applicable law.

 

10.3                        Termination of obligations.  On the service of a notice under Clause 10.2(a), all the obligations of the Lender to the Borrower under this Agreement shall terminate.

 

10.4                        Acceleration of Loan.  On the service of a notice under Clause 10.2(b), the Loan and all other amounts accrued or owing from the Borrower under this Agreement shall become immediately due and payable or, as the case may be, payable on demand.

 

11                                  COSTS

 

11.1                        Costs.  The Borrower shall pay all reasonable costs incurred by the Lender in connection with the preparation of this Agreement and any and all other costs incurred by the Lender in connection with the facility provided pursuant to this Agreement.

 

12                                  INDEMNITIES

 

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

 

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

 

(b)                                 the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on a Repayment Date or the Termination Date or other relevant date;

 

(c)                                  any failure (for whatever reason) by the Borrower to make payment of any amount due under this Agreement on the due date or, if so payable, on demand; and

 

(d)                                the occurrence of an Event of Default and/or the acceleration of repayment of the Loan under Clause 10,

 

and in respect of any tax (other than tax on its overall net income) for which the Lender is liable in connection with any amount paid or payable to the Lender (whether for its own account or otherwise) under this Agreement.

 

12.2                        Breakage costs.  Without limiting its generality, Clause 12.1 covers any claim, expense, liability or loss, including a loss of a prospective profit, incurred by the Lender in liquidating or employing deposits from third parties acquired or arranged to fund or

 

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maintain all or any part of the Loan and/or any overdue amount (or an aggregate amount which includes the Loan or any overdue amount).

 

13                                  NO SET-OFF OR TAX DEDUCTION

 

13.1                        No deductions.  All amounts due from the Borrower under this Agreement shall be paid:

 

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

 

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

 

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

 

(a)                                  the Borrower shall notify the Lender as soon as it becomes aware of the requirement;

 

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

 

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

 

13.3                        Exclusion of tax on overall net income.  In this Clause 13  “tax deduction” means any deduction or withholding for or on account of any present or future tax except tax on the Lender’s overall net income.

 

14                                  ILLEGALITY

 

14.1                        Illegality.  This Clause 14 applies if the Lender notifies the Borrower that it has become, or will with effect from a specified date, become:

 

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

 

(b)                                 contrary to, or inconsistent with, any regulation,

 

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

 

14.2                        Notification and effect of illegality.  On the Lender notifying the Borrower under Clause 14.1, the Commitment shall terminate; and thereupon or, if later, on the date specified in the Lender’s notice under Clause 14.1 as the date on which the notified event would become effective the Borrower shall prepay the Loan in full.

 

14.3                       Mitigation.  If circumstances arise which would result in a notification under Clause 14.114.1 then, without in any way limiting the rights of the Lender under Clause 14.2, the Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement to a subsidiary not affected by the circumstances but the Lender shall not be under any obligation to take any such action if, in its opinion, to do would or might:

 

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

 

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

 

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

 

15                                  TRANSFERS

 

15.1                        No Transfers.  Neither party may, without the consent of the other party, transfer any of its rights, liabilities or obligations under this Agreement.

 

16                                  NOTICES

 

16.1                        General.  Unless otherwise specifically provided, any notice under or in connection with this Agreement shall be given by letter or fax and shall be effective upon receipt; and references in this Agreement to written notices, notices in writing and notices signed by particular persons shall be construed accordingly.

 

16.2                        Addresses for communications.  A notice by letter or fax shall be sent:

 

(a)                                  to the Lender:

 

Golar LNG Limited

P O Box HM1593

Par La Ville Place, 4th Floor

Par La Ville Road

Hamilton

HM9X Bermuda

 

Fax:                                                                           +441 295 3494

Attention:              The President

 

with a copy to:

 

Golar Management Limited

13th Floor, One America Square

17 Crosswall

London EC3N 2LB

 

Fax:                                                                           +44(0) 20 7063 7901

Attention:              Chief Accounting Officer

 

(b)                                 to the Borrower:

 

c/o Golar LNG Limited

P O Box HM1593

Par La Ville Place, 4th Floor

Par La Ville Road

Hamilton

HM9X Bermuda

 

Fax:                                                                           +441 295 3494

Attention:              The President

 

with a copy to:

 

Golar Management Limited

13th Floor, One America Square

17 Crosswall

 

8

 

London EC3N 2LB

 

Fax:                                                                           +44(0) 20 7063 7901

Attention:              Chief Accounting Officer

 

or to such other address as the relevant party may notify the other.

 

17                                  SUPPLEMENTAL

 

17.1                        Rights cumulative.  The rights and remedies which this Agreement gives to the Lender are:

 

(a)                                  cumulative;

 

(b)                                 may be exercised as often as appears expedient; and

 

(c)                                  shall not, unless explicitly and specifically stated so, be taken to exclude or limit any right or remedy conferred by any law.

 

17.2                        Severability.  If any provision of this Agreement is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or legality of the other provisions of this Agreement.

 

17.3                        Third party rights.  A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.

 

18                                  LAW AND JURISDICTION

 

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

 

18.2                        Exclusive English jurisdiction.  Subject to Clause 18.3, the courts of England shall have exclusive jurisdiction to settle any Dispute.

 

18.3                        Choice of forum for the exclusive benefit of the Lender.  Clause 18.2 is for the exclusive benefit of the Lender, which reserves the rights:

 

(a)                                  to commence proceedings in relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and

 

(b)                                 to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings in England.

 

The Borrower shall not commence any proceedings in any country other than England in relation to a Dispute.

 

18.4                       Process agent.  The Borrower irrevocably appoints Golar Management Limited at its registered office for the time being, presently at 13th Floor, One America Square, 17 Crosswall, London EC3N 2LB, to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with a Dispute.

 

18.5                        Lender’s rights unaffected.  Nothing in this Clause18 shall exclude or limit any right which the Lender may have (whether under the law of any country, an international convention or otherwise) with regard to the bringing of proceedings, the service of

 

9

 

process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction.

 

18.6                        Meaning of “proceedings”.  In this Clause 18, “proceedings” means proceedings of any kind, including an application for a provisional or protective measure and a “Dispute” means any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement).

 

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

 

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SCHEDULE 1

 

DRAWDOWN NOTICE

 

To:                              Golar LNG Limited,

14 Par La Ville Place, P

Par La Ville Road,

Hamilton, Bermuda

 

Attention: The President

 

Cc:                               Golar Management Limited

13th Floor, One America Square

17 Crosswall

London EC3N 2LB

 

Attention: Chief Accounting Officer

 

[·] 2011

 

1                                         We refer to the loan agreement (the “Loan Agreement”) dated [·] 2011 and made between us as Borrower and you as Lender in connection with a revolving credit facility of up to US$20,000,000.  Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice.

 

2                                         We request to borrow as follows:-

 

(a)                                  Amount: US$[·];

 

(b)                                 Drawdown Date:  [·];

 

(c)                                  Payment instructions : account in our name and numbered [·] with [·] of [·].

 

3                                         We represent and warrant that no Event of Default or has occurred or will result from the borrowing of the Loan.

 

4                                         We confirm that we will indemnity you against any loss or expense which you  may sustain or incur as a consequence of the Advance not being drawn, including but not limited to any loss or expenses incurred by you to fund the Advance.

 

5                                        This notice cannot be revoked without the prior consent of the Lender.

 

	
Yours faithfully
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
for and on behalf of
    	
 
    
	
GOLAR LNG PARTNERS L.P.
    	
 
    

 

11

 

EXECUTION PAGE

 

	
BORROWER
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
GOLAR LNG LIMITED
    	
)
    	
 
    
	
in the presence of:
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
LENDER
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
for and on behalf of
    	
)
    	
 
    
	
GOLAR LNG PARTNERS L.P.
    	
)
    	
 
    
	
in the presence of:
    	
)
    	
 
    

 

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