Document:

Exhibit 10.2

 

SHAREHOLDERS AGREEMENT

 

by and among

 

DORIAN LPG LTD.

 

and

 

THE SHAREHOLDERS NAMED HEREIN

 

dated as of

 

November 26, 2013

 

 

SHAREHOLDERS AGREEMENT

 

This Shareholders Agreement (as executed and as it may be amended, modified, supplemented or restated from time to time, as provided herein, this “Agreement”), dated as of November 26, 2013, is entered into by and among DORIAN LPG LTD., a corporation formed under the laws of the Republic of the Marshall Islands (the “Company”), and each of DORIAN HOLDINGS LLC, a limited liability company formed under the laws of the Republic of the Marshall Islands (“Dorian Holdings”), SEADOR HOLDINGS LLC, a limited liability company formed under the laws of the State of Delaware (“Seador”) and SCORPIO TANKERS INC., a corporation formed under the laws of the Republic of the Marshall Islands (“Scorpio” and collectively with Dorian Holdings and Seador, the “Shareholders”) and each other Person who after the date hereof acquires securities of the Company and becomes a party to this Agreement.

 

RECITALS

 

WHEREAS, Dorian Holdings and Seador are existing shareholders of the Company’s Common Shares, each holding approximately 25.0% of the Company’s issued and outstanding Common Shares, and the Company and Scorpio have entered into that certain Purchase Agreement dated as of November 26, 2013 (the “Purchase Agreement”), pursuant to which Scorpio has agreed to purchase and the Company agreed to sell to Scorpio 39,952,123 Common Shares, representing approximately 30.0% of the Company’s issued and outstanding Common Shares; and

 

WHEREAS, the Company and the Shareholders desire to enter into this Agreement to set forth their understanding and agreement as to the Common Shares held by the Shareholders, including the voting, tender and transfer of such shares under the circumstances set forth herein.

 

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

 

ARTICLE I

DEFINITIONS

 

Section 1.01                            Definitions. When used in this Agreement with initial capital letters, the following terms have the meanings specified or referred to in this Section 1.01:

 

“Affiliate” means, with respect to any Person, any other Person who, directly or indirectly (including through one or more intermediaries), controls, is controlled by, or is under common control with, such Person, including any partner, member, stockholder or other equity holder of such Person or manager, director, officer or employee of such Person. For purposes of this definition, “control,” when used with respect to any specified Person, shall mean the power, direct or indirect, to direct or cause the direction of the

 

 

management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise; and the terms “controlling’ and “controlled” shall have correlative meanings.

 

“Agreement” has the meaning set forth in the Preamble.

 

“Applicable Law” means all applicable provisions of (a) constitutions, treaties, statutes, laws (including the common law), rules, regulations, decrees, ordinances, codes, proclamations, declarations or orders of any Governmental Authority; (b) any consents or approvals of any Governmental Authority; and (c) any orders, decisions, advisory or interpretative opinions, injunctions, judgments, awards, decrees of, or agreements with, any Governmental Authority.

 

“Board” has the meaning set forth in Section 2.01(a).

 

“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required to close.

 

“Demand Registration” has the meaning set forth in Section 5.01.

 

“Capital Stock” means any preferred stock, the Common Shares and any other class or series of capital stock or other equity securities of the Company, whether authorized as of or after the date hereof.

 

“Commission” shall mean the U.S. Securities and Exchange Commission.

 

“Common Share” means, the common shares of the Company, par value $0.01 per share, and any other class of common stock of the Company and any securities issued in respect thereof, or in substitution therefore, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation, exchange or similar reorganization.

 

“Company” has the meaning set forth in the Preamble.

 

“Company Opportunity” has the meaning set forth in Section 6.02.

 

“Company Subsidiary” means any Subsidiary of the Company.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations thereunder, which shall be in effect at the time.

 

“Excluded Issuance” means an issuance or sale of any Capital Stock or Stock Equivalents in connection with: (a) a grant to any existing or prospective directors, officers or other employees of the Company or any Company Subsidiary pursuant to equity-based plans or other compensation agreement; (b) the conversion or exchange of any securities of the Company into Capital Stock, or the exercise of any existing warrants

 

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or other rights to acquire Capital Stock; or (c) the Initial Public Offering or the Private Placement.

 

“Fair Market Value” of any asset as of any date means the purchase price that a willing buyer having all relevant knowledge would pay a willing seller for such asset in an arm’s length transaction, as determined in good faith by the Board based on such factors as the Board, in the exercise of its reasonable business judgment, considers relevant.

 

“Fiscal Year” means the twelve (12) month period ending March 31.

 

“Fully Diluted Basis” means, as of any date of determination: (a) with respect to all Capital Stock, all issued and outstanding Capital Stock of the Company and all Capital Stock issuable upon the exercise or conversion of any outstanding Stock Equivalents as of such date, whether or not such Stock Equivalent is at the time exercisable or convertible; or (b) with respect to any specified type, class or series of Capital Stock, all issued and outstanding shares of Capital Stock designated as such type, class or series and all such designated shares of Capital Stock issuable upon the conversion or exercise of any outstanding Stock Equivalents as of such date, whether or not such Stock Equivalent is at the time exercisable or convertible.

 

“Fully Electing Tag-Along Shareholder” has the meaning set forth in Section 4.02(e)(i).

 

“GAAP” means United States generally accepted accounting principles in effect from time to time.

 

“Governmental Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other nongovernmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Initial Public Offering” means the first to occur of the initial sale of Common Shares of the Company in a public offering, by the Company in an underwritten public offering led by a nationally recognized underwriting firm and/or, if agreed by the Company and the Shareholders, by a shareholder of the Company pursuant to an effective registration statement under the Securities Act.

 

“Inspector” has the meaning set forth in Section 5.04(a).

 

“Issuance Notice” has the meaning set forth in Section 3.01(b).

 

“Listing” means the listing of the Common Shares on the NYSE or Nasdaq other than in connection with an Initial Public Offering, if agreed by the Company and the Shareholders.

 

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“Lock-Up Period” has the meaning set forth in Section 5.03(a).

 

“Long-Form Registration” has the meaning set forth in Section 5.01(a).

 

“Nasdaq” has the meaning set forth in Section 6.01(a).

 

“New Equity Securities” means any authorized but unissued Capital Stock or any Stock Equivalents.

 

“Non-Offering Shareholder” has the meaning set forth in Section 4.01(a).

 

“NYSE” has the meaning set forth in Section 6.01(a).

 

“Offered Shares” has the meaning set forth in Section 4.01(a).

 

“Offering Shareholder” has the meaning set forth in Section 4.01(a).

 

“Offering Shareholder Notice” has the meaning set forth in Section 4.01(b).

 

“Other Business” has the meaning set forth in Section 6.01.

 

“Participating Tag-along Shareholder” has the meaning set forth in Section 4.02(d).

 

“Person” means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

 

“Piggyback Registration” has the meaning set forth in Section Section 5.02(a).

 

“Pre-emptive Acceptance Notice” has the meaning set forth in Section 3.01(c).

 

“Pre-emptive Exercise Period” has the meaning set forth in Section 3.01(c).

 

“Pre-emptive Pro Rata Portion” means, for any Shareholder as of any particular time, a fraction determined by dividing (a) the number of Common Shares on a Fully Diluted Basis owned by such Shareholder immediately prior to such time by (b) the aggregate number of Common Shares on a Fully Diluted Basis owned by all of the Shareholders immediately prior to such time.

 

“Private Placement” has the meaning set forth in Section 6.01(a).

 

“Prospective Purchaser” has the meaning set forth in Section 3.01(b).

 

“Prospectus” means the prospectus or prospectuses included in any Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus,

 

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including post-effective amendments and all material incorporated by reference in such prospectus or prospectuses.

 

“Purchase Agreement” has the meaning set forth in the Recitals.

 

“Records” shall have the meaning set forth in Section 5.04(a).

 

“Registrable Securities” means (a) any shares of Common Shares held by a Shareholder or issuable upon conversion, exercise or exchange of Shares owned by a Shareholder at any time, and (b) any Common Shares issued or issuable with respect to any shares described in subsection (a) above by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization (it being understood that for purposes of this Agreement, a Person shall be deemed to be a holder of Registrable Securities whenever such Person has the right to then acquire or obtain from the Company any Registrable Securities, whether or not such acquisition has actually been effected). As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i) a Registration Statement covering such securities has been declared effective by the Commission and such securities have been disposed of pursuant to such effective Registration Statement, (ii) such securities are sold under circumstances in which all of the applicable conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met, (iii) such securities are otherwise transferred and such securities may be resold without subsequent registration under the Securities Act, or (iv) such securities shall have ceased to be outstanding.

 

“Registration Statement” means any registration statement of the Company which covers any of the Registrable Securities pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all materials incorporated by reference in such Registration Statement.

 

“Remaining Non-Offering Shareholder” has the meaning set forth in Section 4.01(c)(i).

 

“Remaining Tag-along Securities” has the meaning set forth in Section 4.02(e)(i).

 

“Remaining Tag-along Securities Exercise Notice” has the meaning set forth in Section 4.02(e)(ii).

 

“Remaining Tag-along Securities Exercise Period” has the meaning set forth in Section 4.02(e)(ii).

 

“Remaining Tag-along Security Notice” has the meaning set forth in Section 4.02(e)(i).

 

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“Representative” means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person.

 

“ROFO Notice Period” has the meaning set forth in Section 4.01(b).

 

“ROFO Offer Notice” has the meaning set forth in Section 4.01(c)(i).

 

“Scorpio Director” has the meaning set forth in Section 2.01(a).

 

“Securities Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder, which shall be in effect at the time.

 

“Selling Expenses” means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any holder of Registrable Securities, except for the reasonable fees and disbursements of counsel for the holders of Registrable Securities required to be paid by the Company pursuant to Section 5.

 

“Selling Shareholder” has the meaning set forth in Section 4.02(a).

 

“Shareholder” has the meaning set forth in the Preamble.

 

“Shares” means (a) the Common Shares; (b) preferred stock; and (c) any other Capital Stock, in each case together with any Stock Equivalents thereon, purchased, owned or otherwise acquired by a Shareholder as of or after the date hereof, and any securities issued in respect of any of the foregoing, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation, exchange or similar reorganization.

 

“Short-Form Registration” has the meaning set forth in Section 5.01(a).

 

“Stock Equivalents” means any option to purchase any Capital Stock or any other security or obligation that is by its terms, directly or indirectly, convertible into or exchangeable or exercisable for Shares, and any option, warrant or other right to subscribe for, purchase or acquire Shares or Stock Equivalents (disregarding any restrictions or limitations on the exercise of such rights).

 

“Subsidiary” means, with respect to any Person, any other Person of which a majority of the outstanding shares or other equity interests having the power to vote for directors or comparable managers are owned, directly or indirectly, by the first Person.

 

“Tag-along Exercise Notice” has the meaning set forth in Section 4.02(d)(i).

 

“Tag-along Exercise Period” has the meaning set forth in Section 4.02(d)(i).

 

“Tag-along Notice” has the meaning set forth in Section 4.02(c).

 

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“Tag-along Pro Rata Portion” means, for any Selling Shareholder and for any particular class or series of Tag-along Security as of any particular time, a fraction determined by dividing (a) the number of Shares on a Fully Diluted Basis of the applicable class or series of Tag-along Security owned by such Selling Shareholder immediately prior to such time by (b) the aggregate number of Shares on a Fully Diluted Basis of the applicable class or series of Tag-along Security owned by all Selling Shareholders immediately prior to such time.

 

“Tag-along Sale” has the meaning set forth in Section 4.02(a).

 

“Tag-along Security” has the meaning set forth in Section 4.02(a).

 

“Tag-along Shareholder” has the meaning set forth in Section 4.02(a).

 

“Transfer” means to, directly or indirectly, sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of, either voluntarily or involuntarily, by operation of law or otherwise, or to enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of, any shares of Capital Stock or Stock Equivalents owned by a Person or any interest (including a beneficial interest) in any Capital Stock or Stock Equivalents owned by a Person. “Transfer”, when used as a noun, shall have a correlative meaning.

 

“Transferee” means a recipient of, or proposed recipient of, a Transfer.

 

“Waived Offered Shares” has the meaning set forth in Section 4.01(d).

 

“Waived ROFO Transfer Period” has the meaning set forth in Section 4.01(d).

 

Section 1.02                            Interpretation. For purposes of this Agreement: (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole. The definitions given for any defined terms in this Agreement shall apply equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein to: (x) Articles and Sections mean the Articles and Sections of this Agreement; (y) an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.

 

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ARTICLE II

BOARD OF DIRECTORS

 

Section 2.01                            Board Composition.

 

(a)                                 Scorpio Director. Each Shareholder shall vote all voting securities (including all voting Shares) owned by such Shareholder or over which such Shareholder has voting control, and shall take all other necessary or desirable actions within its control (including in its capacity as a director, member of board committee, officer of the Company or otherwise), and the Company shall take all necessary or desirable actions within its control, to ensure that Robert Bugbee, or his replacement designated by Scorpio (the “Scorpio Director”) be elected and continues to serve as a member of the Company’s board of directors (the “Board”).

 

(b)                                 Scorpio Consent Rights. In addition to any vote or consent of the Board or the Shareholders of the Company required by Applicable Law, the Articles of Incorporation or the Bylaws of the Company, without the prior written consent of Scorpio, the Company shall not, and shall not enter into any commitment to:

 

(i)                                     make any change to the Articles of Incorporation or the Bylaws of the Company;

 

(ii)                                  issue any form of preferred equity or any new class of equity security;

 

(iii)                               enter into any material transaction with Dorian Holdings or Seador;

 

(iv)                              enter into any other shareholder agreement; or

 

(v)                                 initiate any voluntary liquidation, dissolution or winding up of the Company or any Company Subsidiary or consent to any involuntary liquidation or dissolution.

 

(c)                                  Removal, Resignation, Vacancy.

 

(i)                                     The Scorpio Director may be removed at any time (with or without cause) upon, and only upon, the written request of Scorpio. Each other Shareholder shall vote all Shares owned by such Shareholder or over which such Shareholder has voting control, and shall take all other necessary or desirable actions within its control, and the Company shall take all necessary or desirable actions within its control, to remove or replace from the Board such Scorpio Director upon, and only upon, such written request. Except as provided in the preceding sentence, unless Scorpio shall otherwise consent in writing, no other Shareholder shall take any action to cause the removal of the Scorpio Director other than in accordance with the Articles of Incorporation of the Company.

 

(ii)                                  The Scorpio Director may resign at any time from the Board by delivering his written resignation to the Board. Any such resignation shall be effective upon receipt thereof unless it is specified to be effective at some other time or upon the

 

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occurrence of some other event. The Board’s acceptance of a resignation shall not be necessary to make it effective.

 

(iii)                               In the event that a vacancy is created on the Board at any time due to the death, disability, retirement, resignation or removal of the Scorpio Director, Scorpio shall have the right to designate an individual to fill such vacancy and the Company and each Shareholder hereby agrees to take such actions as may be necessary or desirable within his, her or its control (including by voting all Shares owned by such Shareholder or over which such Shareholder has voting control) to ensure the election or appointment of such Scorpio designee.

 

Section 2.02                            Termination. The provisions of Section 2.01(b) of this Article II shall terminate on the earlier of (i) the pricing of the Initial Public Offering or (ii) the Listing, and the remaining provisions of this Article II shall terminate at such time as Scorpio ceases to beneficially own, as determined in accordance with Section 13 of the Exchange Act and the rules and regulations promulgated thereunder, at least 10% of the Company’s issued and outstanding Common Shares.

 

ARTICLE III

PRE-EMPTIVE RIGHTS

 

Section 3.01                            Pre-emptive Right.

 

(a)                                 Issuance of New Equity Securities. The Company hereby grants to each Shareholder, in addition to any other rights granted pursuant to Section 6.01 of this Agreement, a separate right to purchase its Pre-emptive Pro Rata Portion of any New Equity Securities that the Company may from time to time propose to issue or sell to any Person, provided that the provisions of this Article III shall not apply to any Excluded Issuance.

 

(b)                                 Additional Issuance Notices. The Company shall give written notice (an “Issuance Notice”) of any proposed issuance or sale of New Equity Securities to each Shareholder within five (5) Business Days following any meeting of the Board at which any such issuance or sale is approved. The Issuance Notice shall, if applicable, be accompanied by a written offer from any prospective purchaser seeking to purchase the applicable New Equity Securities (a “Prospective Purchaser”) and shall set forth the material terms and conditions of the proposed issuance or sale, including:

 

(i)                                     the number and description of New Equity Securities proposed to be issued;

 

(ii)                                  the proposed issuance date, which shall be at least ten (10) days from the date of the Issuance Notice;

 

(iii)                               the proposed purchase price per share of New Equity Securities and all other material terms of the offer or sale; and

 

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(iv)                              if the consideration to be paid by the Prospective Purchaser includes non-cash consideration, the Fair Market Value thereof.

 

(c)                                  Exercise of Pre-emptive Rights. Each Shareholder shall for a period of ten (10) days following the receipt of an Issuance Notice (the “Pre-emptive Exercise Period”) have the right to elect irrevocably to purchase all or any portion of its Pre-emptive Pro Rata Portion of any New Equity Securities on the terms and conditions, including the purchase price, set forth in the Issuance Notice by delivering a written notice to the Company (a “Pre-emptive Acceptance Notice”) specifying the number of New Equity Securities it desires to purchase up to its Pre-emptive Pro Rata Portion. The delivery of a Pre-emptive Acceptance Notice by a Shareholder shall be a binding and irrevocable offer to purchase the New Equity Securities described therein. The failure of a Shareholder to deliver a Pre-emptive Acceptance Notice by the end of the Pre-emptive Exercise Period shall constitute a waiver of its rights under this Section 3.01(c) with respect to the purchase of such New Equity Securities, but shall not affect its rights with respect to any future issuances or sales of New Equity Securities.

 

(d)                                 Sales to the Prospective Purchaser. Following the expiration of the Pre-emptive Exercise Period the Company shall be free to complete the proposed issuance or sale of New Equity Securities described in the Issuance Notice with respect to which Shareholders declined to exercise the pre-emptive right set forth in this Section 3.01 on terms no less favorable to the Company than those set forth in the Issuance Notice (except that the number of the New Equity Securities to be issued or sold by the Company may be reduced); provided, that: (i) such issuance or sale is closed within thirty (30) days after the expiration of the Pre-emptive Exercise Period (subject to the extension of such period for a reasonable time not to exceed forty (40) days to the extent reasonably necessary to obtain any third-party approvals); and (ii) for the avoidance of doubt, the price at which the New Equity Securities are sold to the Prospective Purchaser is at least equal to or higher than the purchase price described in the Issuance Notice. In the event the Company has not sold such New Equity Securities within such time period, the Company shall not thereafter issue or sell any New Equity Securities without first again offering such securities to the Shareholders in accordance with the procedures set forth in this Section 3.01.

 

(e)                                  Closing of the Issuance. The closing of any purchase of New Equity Securities by any Shareholder shall be consummated concurrently with the consummation of the issuance or sale described in the Issuance Notice. Each Shareholder shall deliver to the Company the purchase price for the New Equity Securities purchased by it by wire transfer of immediately available funds. Upon the issuance or sale of any New Equity Securities in accordance with this Section 3.01, the Company shall deliver the New Equity Securities in certificated or book entry form, free and clear of any liens (other than those arising hereunder and those attributable to the actions of the purchasers thereof or Applicable Law), and the Company shall so represent and warrant to each Shareholder that such New Equity Securities shall be, upon issuance thereof and after payment therefor, duly authorized, validly issued, fully paid and non-assessable. Each party to the purchase and sale of New Equity Securities shall take all such other actions

 

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as may be reasonably necessary to consummate the purchase and sale including, without limitation, entering into such additional agreements as may be necessary or appropriate.

 

(f)                                   Termination. This Section 3.01, and the covenants contained herein, shall terminate upon the earlier of (i) the pricing of the Initial Public Offering or (ii) the Listing.

 

ARTICLE IV

RIGHT OF FIRST OFFER

 

Section 4.01                            Right of First Offer.

 

(a)                                 Right of First Offer. Subject to the terms and conditions specified in this Section 4.01, if any Shareholder (an “Offering Shareholder”) proposes to Transfer any Shares (the “Offered Shares”) owned by it to any unaffiliated third party, each of Shareholders other than the Offering Shareholder (the “Non-Offering Shareholders”) shall have a right of first offer. Each time an Offering Shareholder proposes to Transfer any Offered Shares, the Offering Shareholder shall first make an offering of the Offered Shares to the Non-Offering Shareholders, in accordance with the following provisions of this Section 4.01.

 

(b)                                 Offer Notice.

 

(i)                                     The Offering Shareholder shall give written notice (the “Offering Shareholder Notice”) to the Company and to the Non-Offering Shareholders, stating its bona fide intention to Transfer the Offered Shares and specifying the number of Offered Shares and the material terms and conditions, including the price, pursuant to which the Offering Shareholder proposes to Transfer the Offered Shares.

 

(ii)                                  The Offering Shareholder Notice shall constitute the Offering Shareholder’s offer to Transfer the Offered Shares to the Non-Offering Shareholders, which offer shall be irrevocable for a period of ten (10) Business Days (the “ROFO Notice Period”).

 

(iii)                               By delivering the Offering Shareholder Notice, the Offering Shareholder represents and warrants to the Non-Offering Shareholders, that (x) the Offering Shareholder has full right, title and interest in and to the Offered Shares, (y) the Offering Shareholder has all the necessary power and authority and has taken all necessary action to sell such Offered Shares as contemplated by this Section 4.01, and (z) the Offered Shares are free and clear of any and all liens other than those arising as a result of or under the terms of this Agreement.

 

(c)                                  Exercise of Right of First Offer.

 

(i)                                     Upon receipt of the Offering Shareholder Notice, each Non-Offering Shareholder shall have until the end of the ROFO Notice Period to offer to purchase all or a portion of the Offered Shares by delivering a written notice (a “ROFO Offer Notice”) to the Offering Shareholder and the Company stating that it offers to

 

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purchase a specified number of the Offered Shares on the terms specified in the Offering Shareholder Notice. Any ROFO Offer Notice so delivered shall be binding upon delivery and irrevocable. In the event that more than one Non-Offering Shareholder delivers a ROFO Offer Notice and such Non-Offering Shareholders desire in the aggregate to purchase more shares than the number of Offered Shares, then the Offered Shares shall be allocated among such Non-Offering Shareholders on a pro-rata basis based on the number of Common Shares owned by such Non-Offering Shareholders. If, subsequent to such pro-rata allocation or any allocation as described in this sentence, any Offered Shares remain unallocated and any Non-Offering Shareholder has not been allocated the full number of shares specified in a ROFO Offer Notice delivered by such Shareholder (each a “Remaining Non-Offering Shareholder”), then the unallocated Offered Shares shall be allocated in successive allocations, each on a pro-rata basis among all Remaining Non-Offering Shareholders based on the number of Common Shares owned by such Remaining Non-Offering Shareholders.

 

(ii)                                  Each Non-Offering Shareholder that does not deliver a ROFO Offer Notice during the ROFO Notice Period shall be deemed to have waived its rights to purchase the Offered Shares under this Section 4.01, and the Offering Shareholder shall thereafter be free to Transfer the Offered Shares to any unaffiliated third party without any further obligation to the non-Offering Shareholders pursuant to this Section 4.01.

 

(iii)                               In the event a Shareholder delivers a ROFO Offer Notice, it shall be deemed to have waived any rights it may have pursuant to Section 4.02 of this Agreement with respect to such sale of Offered Shares.

 

(d)                                 Consummation of Sale. Subject to the right of any Non-Offering Shareholder which did not deliver a ROFO Offer Notice to participate in such sale pursuant to Section 4.02, the Offering Shareholder may, during the forty-five (45) day period following the expiration of the ROFO Notice Period (the “Waived ROFO Transfer Period”), Transfer all of the remaining Offered Shares not subject to a ROFO Offer Notice delivered in accordance with Section 4.01(c) (the “Waived Offered Shares”) to an unaffiliated third party on terms and conditions no more favorable to that party than those set forth in the Offering Shareholder Notice. If the Offering Shareholder does not Transfer the Waived Offered Shares within such period or, if such Transfer is not consummated within the Waived ROFO Transfer Period, each Shareholder’s rights provided hereunder shall be deemed to be revived and the Waived Offered Shares shall not be offered to any Person unless first re-offered to the Non-Offering Shareholders in accordance with this Section 4.01.

 

(e)                                  Right of First Offer Exceptions. Notwithstanding anything herein to the contrary, the provisions of this Section 4.02 shall not apply with respect to the proposed Transfer of the Shares by any Shareholder to its shareholders by way of a distribution or otherwise on a pro-rata basis (a “Shareholder Distribution”), provided however, that such Shareholder shall use its commercially reasonable best efforts to cause any of its shareholders holding more than five percent (5%) of the issued and outstanding Shares of the Company following a Shareholder Distribution to become obligated to comply with the terms of this Section 4.01 as if a Shareholder hereunder.

 

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(f)                                   Cooperation. Each Shareholder shall take all actions as may be reasonably necessary to consummate the sale contemplated by this Section 4.01 including, without limitation, entering into agreements and delivering certificates and instruments and consents as may be deemed necessary or appropriate.

 

(g)                                  Closing. At the closing of any sale and purchase pursuant to this Section 4.01, the Offering Shareholder shall deliver to the Non-Offering Shareholders a certificate or certificates representing the Offered Shares to be sold (if any), accompanied by stock powers with signatures guaranteed and all necessary stock transfer taxes paid and stamps affixed, if necessary, against receipt of the purchase price therefor from the purchasing Shareholder by certified or official bank check or by wire transfer of immediately available funds.

 

(h)                                 Termination. This Section 4.01, and the covenants contained herein, shall terminate upon the earlier of (i) the pricing of the Initial Public Offering or (ii) the Listing.

 

Section 4.02                            Tag-along Right.

 

(a)                                 Participation on Sale. Subject to the terms and conditions specified in this Section 4.02, if any Shareholder (a “Selling Shareholder”) proposes to Transfer any of its Shares of the Company (the “Tag-along Securities”) to any unaffiliated third party, then each of the Shareholders other than the Selling Shareholder (the “Tag-along Shareholders”) shall have the right to participate in such sale (a “Tag-along Sale”) on a pro-rata basis on the terms and conditions set forth in this Section 4.02.

 

(b)                                 Tag-along Sale Exceptions. Notwithstanding anything herein to the contrary, the provisions of this Section 4.02 shall not apply to a sale of Shares that is made pursuant to an effective Registration Statement in accordance with Article V of this Agreement, an Initial Public Offering or the Transfer of Shares by any Shareholder to its shareholders by way of a Shareholder Distribution, provided however, that such Shareholder shall use its commercially reasonable best efforts to cause any of its shareholders holding more than five percent (5%) of the issued and outstanding Shares of the Company following a Shareholder Distribution to become obligated to comply with the terms of this Section 4.02 as if a Shareholder hereunder.

 

(c)                                  Tag-along Notice. The Selling Shareholder shall deliver to the Company and the Tag-along Shareholders a written notice (a “Tag-along Notice”) of the proposed Tag-along Sale not less than fifteen (15) days prior to the consummation of any Tag-along Sale.

 

The Tag-along Notice shall describe in reasonable detail:

 

(i)                                     the aggregate number of Tag-along Securities the Selling Shareholder proposes to Transfer;

 

(ii)                                  the identity of the prospective Transferee(s);

 

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(iii)                               the proposed date, time and location of the closing of the Tag-along Sale, which shall not be less than sixty (60) days from the date of the Tag-along Notice;

 

(iv)                              the purchase price per share for each Tag-along Security (which shall be payable solely in cash) and the other material terms and conditions of the Transfer; and

 

(v)                                 a copy of any form of agreement proposed to be executed in connection therewith.

 

(d)                                 Exercise of Tag-along Right.

 

(i)                                     Each of the Tag-along Shareholders (individually or collectively, the “Participating Tag-along Shareholder”) may exercise its right to participate in the Tag-along Sale on the terms described in the Tag-along Notice by delivering to the Selling Shareholder a written notice (a “Tag-along Exercise Notice”) stating its election to do so no later than ten (10) Business Days after receipt of the Tag-along Notice (the “Tag-along Exercise Period”). The election of the Participating Tag-along Shareholder, set forth in a Tag-along Exercise Notice, shall be irrevocable, and, to the extent the offer in the Tag-along Notice is accepted, such Participating Tag-along Shareholder shall be bound and obligated to consummate the Transfer on the terms and conditions set forth in this Section 4.02. If the Participating Tag-along Shareholder elects pursuant to a Tag-along Exercise Notice and this Section 4.02(d)(i) to participate in the Tag-along Sale, the number of Tag-along Securities that the Selling Shareholder may sell in the Tag-along Sale shall be correspondingly reduced in accordance with Section 4.02(d)(ii).

 

(ii)                                  The Selling Shareholder and a Participating Tag-along Shareholder, if timely electing to participate in the Tag-along Sale pursuant to Section 4.02(d)(i), shall have the right to Transfer in the Tag-along Sale up to the number of Shares of Tag-along Securities set out in the applicable Tag-along Notice equal to the product of (A) the aggregate number of shares of each particular class or series of Tag-along Securities, as the case may be, set out in the applicable Tag-along Notice and (B) such Shareholder’s Tag-along Pro Rata Portion of the Tag-along Securities.

 

(e)                                  Remaining Tag-along Securities

 

(i)                                     If any Tag-along Shareholder either declines to exercise its right to participate in any Tag-along Sale under Section 4.02(d) or elects to exercise it with respect to less than its full Tag-along Pro Rata Portion for any class or series of Tag-along Securities, the Selling Shareholder shall deliver a written notice (a “Remaining Tag-along Securities Notice”) to each of the Tag-along Shareholders timely electing to sell its full Tag-along Pro Rata Portion of each applicable class or series of Tag-along Securities in the Tag-along Sale pursuant to Section 4.02(d) (each, a “Fully Electing Tag-along Shareholder”) within five (5) days following the expiration of the Tag-along Exercise Period, informing each Fully Electing Tag-along Shareholder of the aggregate number of shares of each class or series of Tag-along Stock that the Tag-along

 

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Shareholders have not elected to sell (such shares, the “Remaining Tag-along Securities”). The Selling Shareholder and each Fully Electing Tag-along Shareholder shall be entitled to Transfer in the Tag-along Sale, in addition to any applicable Shares already being Transferred by such Shareholder pursuant to this Section 4.02, a number of Shares of each class or series of Remaining Tag-along Securities, treated separately for purposes of this calculation, held by it equal to the product of (A) the number of Shares of the applicable class or series of Remaining Tag-along Securities, and (B) a fraction determined by dividing (1) the number of Shares on a Fully Diluted Basis of the applicable class or series of Remaining Tag-along Securities owned by such Shareholder, by (2) the aggregate number of Shares on a Fully Diluted Basis of the applicable class or series of Remaining Tag-along Securities owned by the Selling Shareholder and all of the Fully Electing Tag-along Shareholders.

 

(ii)                                  Each Fully Electing Tag-along Shareholder shall exercise its right to sell Remaining Tag-along Securities in accordance with Section 4.02(e)(i) by delivering to the Selling Shareholder a written notice (a “Remaining Tag-along Security Exercise Notice”) stating its election to do so and specifying the number of additional Shares of each applicable class or series of Remaining Tag-along Securities held by it to be included in the Tag-along Sale pursuant to Section 4.02(e)(i)), no later than five (5) days after receipt of the Remaining Tag-along Security Notice (the “Remaining Tag-along Security Exercise Period”).

 

(iii)                               The election of each Fully Electing Tag-along Shareholder set forth in a Remaining Tag-along Security Exercise Notice shall be irrevocable, and, to the extent the offer in the Tag-along Notice is accepted, such Fully Electing Tag-along Shareholder shall be bound and obligated to consummate the Transfer of the additional Shares allocable to it on the terms and conditions set forth in this Section 4.02.

 

(f)                                   Waiver. In the event a Tag-along Shareholder does not deliver a Tag-along Exercise Notice in compliance with Section 4.02(d)(i), it shall be deemed to have waived its rights to participate in the Tag-along Sale with respect to such Tag-along Securities and the Selling Shareholder and the Participating Tag-along Shareholders shall thereafter be free to sell to the prospective Transferee the Tag-along Securities identified in the Tag-along Notice at a per share price that is no greater than the applicable per share price set forth in the Tag-along Notice and on other terms and conditions which are not, in the aggregate, materially more favorable to the Selling Shareholder than those set forth in the Tag-along Notice.

 

(g)                                  Conditions of Sale.

 

(i)                                     Any Participating Tag-along Shareholder shall receive the same consideration, after deduction of its proportionate share of the related expenses in accordance with Section 4.02(i) below. In addition, no Transfer of any Tag-along Security by a Selling Shareholder in the Tag-along Sale shall occur unless the prospective Transferee simultaneously purchases the Tag-along Securities elected to be sold by a

 

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Participating Tag-along Shareholder pursuant to Section 4.02(d)(i), and any Transfer in violation of this Section 4.02 shall be null and void.

 

(ii)                                  Each Participating Tag-along Shareholder shall execute the applicable purchase agreement, if any, and shall make or provide the same representations, warranties, covenants and indemnities as the Selling Shareholder makes or provides in connection with the Tag-along Sale; provided, that the Participating Tag-along Shareholder shall only be obligated to make representations and warranties that relate specifically to a Shareholder (as opposed to the Company and its business) with respect to its title to and ownership of the applicable Tag-along Securities, authorization, execution and delivery of relevant documents, enforceability of such documents against the Participating Tag-along Shareholder, and other similar representations and warranties made by the Selling Shareholder, and shall not be obligated to make any of the foregoing representations and warranties with respect to any other Shareholder or their Shares; provided, further, that all indemnities and other obligations shall be made by the Selling Shareholder and each Participating Tag-along Shareholder severally and not jointly and severally (A) with respect to breaches of representations, warranties and covenants made by the Selling Shareholder and the Participating Tag-along Shareholder relating to the Company and its business, if any, pro rata based on the aggregate consideration received by the Selling Shareholder and the Participating Tag-along Shareholder in the Tag-along Sale, and (B) in an amount not to exceed for the Selling Shareholder or the Participating Tag-along Shareholder, the net proceeds received by the Selling Shareholder and the Participating Tag-along Shareholder in connection with the Tag-along Sale, as applicable, plus the amount of any consideration forfeited by the Selling Shareholder or a Participating Tag-along Shareholder, as applicable, to which it is entitled but has not yet received (including, without limitation, as a result of an escrow agreement, earn-out or similar arrangement).

 

(iii)                               Each holder of then currently exercisable Stock Equivalents with respect to the Tag-along Securities proposed to be transferred in a Tag-along Sale shall be given an opportunity to convert, exchange or exercise such Stock Equivalents in order to acquire the applicable Tag-along Security (as and to the extent permitted by the terms and conditions thereof) prior to the consummation of the Tag-along Sale and participate in such sale as holders of such Tag-along Security.

 

(h)                                 Cooperation. Subject to Section 4.02(g)(ii), each Participating Tag-along Shareholder shall take all actions as may be reasonably necessary to consummate the Tag-along Sale, including, without limitation, entering into agreements and delivering certificates and instruments (including stock certificates evidencing the applicable Shares, duly endorsed in blank or accompanied by stock powers or other instruments of transfer duly executed in blank), in each case, consistent with the agreements being entered into and the certificates and instruments being delivered by the Selling Shareholder.

 

(i)                                     Expenses. The fees and expenses of the Selling Shareholder incurred in connection with a Tag-along Sale and for the benefit of each Participating Tag-along Shareholder (it being understood that costs incurred by or on behalf of a Selling Shareholder for its sole benefit will not be considered to be for the benefit of a

 

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Participating Tag-along Shareholder), to the extent not paid or reimbursed by the Company or the prospective Transferee, shall be shared by the Selling Shareholder and each Participating Tag-along Shareholder on a pro rata basis, based on the aggregate consideration received by such Selling Shareholder and each Participating Tag-along Shareholder; provided, that no Participating Tag-along Shareholder shall be obligated to make any out-of-pocket expenditure prior to the consummation of the Tag-along Sale.

 

(j)                                    Consummation of Sale. Subject to the requirements and conditions of this Section 4.02 and the other applicable provisions of this Agreement, the Selling Shareholder shall have forty five (45) days following the expiration of the Tag-along Exercise Period in which to consummate the Tag-along Sale, on terms not more favorable to the Selling Shareholder than those set forth in the Tag-along Exercise Notice. If at the end of such period the Selling Shareholder has not completed the Tag-along Sale, the Selling Shareholder may not then effect a Transfer that is subject to this Section 4.02 without again fully complying with the provisions of this Section 4.02. At the closing of the Tag-along Sale, each Participating Tag-along Shareholder shall enter into the agreements and deliver the certificates and instruments, in each case, required by Section 4.02(g) and Section 4.02(h) against payment therefor directly to the Participating Tag-along Shareholder of the portion of the aggregate consideration to which each Participating Tag-along Shareholder is entitled in the Tag-along Sale in accordance with the provisions of this Section 4.02.

 

(k)                                 Transfers in Violation of the Tag-along Right. If the Selling Shareholder sells or otherwise Transfers to the prospective Transferee any of its Shares in breach of this Section 4.02, then each Tag-along Shareholder shall have the right to sell to the Selling Shareholder, and the Selling Shareholder undertakes to purchase from each Tag-along Shareholder, the number of Shares of each applicable class or series that such Tag-along Shareholder would have had the right to sell to the prospective Transferee pursuant to this Section 4.02, for a per share amount and form of consideration and upon the terms and conditions on which the prospective Transferee bought such shares from the Selling Shareholder, but without indemnity being granted by any Tag-along Shareholder to the Selling Shareholder; provided, that nothing contained in this Section 4.02(k) shall preclude any Shareholder from seeking alternative remedies against such Selling Shareholder as a result of its breach of this Section 4.02. The Selling Shareholder shall also reimburse each Tag-along Shareholder for any and all reasonable and documented out-of-pocket fees and expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Tag-along Shareholder’s rights under this Section 4.02(k).

 

(l)                                     Termination. This Section 4.02, and the covenants contained herein, shall terminate upon the earlier of (i) the pricing of the Initial Public Offering or (ii) the Listing.

 

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ARTICLE V

REGISTRATION RIGHTS

 

Section 5.01                            Demand Registration Right.

 

(a)                                 Commencing upon the earlier of (i) the expiration of the Lock Up Period, (ii) June 30, 2014, if the Company has not filed a registration statement for an Initial Public Offering and listing of the Common Shares on the NYSE or Nasdaq by such date, and (iii) October 1, 2014, if a registration statement for an Initial Public Offering has not been declared effective by the Commission by such date, any Shareholder may request registration under the Securities Act of all or any portion of its Registrable Securities representing not less than seven and one-half percent (7.5%) of the issued and outstanding Common Shares on Form F-1 or S-1 or any successor form thereto (each a “Long-Form Registration”). provided however, that such Shareholder shall not exercise its registration rights under this Section 5.01 if by September 30, 2014 the Company has filed a registration statement relating to the Initial Public Offering with the Commission that is publicly available on the Commission’s EDGAR website and continues to use its commercially reasonable best efforts to complete the Initial Public Offering. Each request for a Long-Form Registration shall specify the approximate number of Registrable Securities required to be registered and whether or not the registration is to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act. Upon receipt of such request, the Company shall promptly (but in no event later than five (5) days following receipt thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have twenty (20) days from the date such notice is given to notify the Company in writing of their desire to be included in such registration. The Company shall cause a Registration Statement on Form F-1 or S-1 (or any successor form) to be filed with the Commission within forty-five (45) days after the date on which the initial request is given and shall use its commercially reasonable best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter. The Company shall not be required to effect a Long-Form Registration more than three times for the Shareholders as a group; provided, that each Shareholder shall be entitled to request one additional Long-Form Registration to the extent such Shareholder has not been included or did not participate in any Demand Registration, and a Registration Statement shall not count as a Long-Form Registration requested under this Section 5.01(a) unless and until it has become effective and the Shareholder requesting such registration is able to register and sell at least two-thirds (66.67%) of the Registrable Securities requested to be included in such registration.

 

(b)                                 After the Initial Public Offering or the Listing, the Company shall use its best efforts to qualify and remain qualified to register securities under the Securities Act pursuant to a Registration Statement on Form F-3 or S-3 or any successor form thereto. At such time as the Company shall have qualified for the use of a Registration Statement on Form F-3 or S-3, the Shareholders shall have the right to request an unlimited number of registrations, each of all or any portion of its Registrable Securities representing not less than five percent (5%) of the issued and outstanding Common Shares or having an aggregate market value of at least $15 million, on Form F-3 or S-3 or any similar Short-form registration (each a “Short-Form Registration” and, together with each Long-Form Registration, a “Demand Registration”). Each request for a Short-Form Registration shall specify the approximate number of Registrable Securities requested to be registered. Upon receipt of such request, the Company shall promptly (but in no event later than five (5) days following receipt thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have ten (10) days from the date

 

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such notice is given to notify the Company in writing of their desire to be included in such registration. The Company shall cause a Registration Statement on Form F-3 or S-3 (or any successor form) to be filed with the Commission within forty-five (45) days after the date on which the initial request is given and shall use its commercially reasonable best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter.

 

(c)                                  The Company shall not be obligated to effect any Demand Registration within sixty (60) days after the effective date of a previous Demand Registration or a previous Piggyback Registration in which holders of Registrable Securities were permitted to register, and actually sold, at least two-thirds (66.67%) of its Registrable Securities requested to be included therein. The Company may postpone for up to thirty (30) days the filing or effectiveness of a Registration Statement for a Demand Registration if the Company’s Board determines in its reasonable good faith judgment that such Demand Registration would (i) materially interfere with a significant acquisition, corporate organization or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act; provided, that in such event the holders of a majority of the Registrable Securities initiating such Demand Registration shall be entitled to withdraw such request and, if such request is withdrawn, such Demand Registration shall not count as one of the permitted Demand Registrations hereunder and the Company shall pay all registration expenses in connection with such registration. The Company may delay a Demand Registration hereunder only twice within any period of twelve consecutive months.

 

(d)                                 If the holders of a majority of the Registrable Securities included in a Demand Registration elect to distribute the Registrable Securities covered by their request in an underwritten offering, they shall so advise the Company. The holders of a majority of the Registrable Securities included in such Demand Registration shall select the investment banking firm or firms to act as the managing underwriter or underwriters in connection with such offering, provided that such selection shall be subject to the consent of the Company, which consent shall not be unreasonably withheld or delayed.

 

(e)                                  If a Demand Registration involves an underwritten offering and the managing underwriter of the requested Demand Registration advises the Company and the holders of Registrable Securities in writing that in its opinion the number of Common Shares proposed to be included in the Demand Registration, including all Registrable Securities and all other Common Shares proposed to be included in such underwritten offering, exceeds the number of Common Shares which can be sold in such underwritten offering and/or the number of Common Shares proposed to be included in such registration would adversely affect the price per share of the Registrable Securities proposed to be sold in such underwritten offering, the Company shall include in such Demand Registration (i) first, the number of Common Shares that the holders of Registrable Securities propose to sell, and (ii) second, the number of Common Shares proposed to be included therein by any other Persons (including Common Shares to be

 

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sold for the account of the Company and/or other holders of Common Shares) allocated among such Persons in such manner as they may agree. If the managing underwriter determines that less than all of the Registrable Securities proposed to be sold can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated pro rata among the respective holders thereof on the basis of the number of Registrable Securities owned by each such holder.

 

Section 5.02                            Piggyback Registration.

 

(a)                                 Whenever the Company proposes to register any of its Common Shares under the Securities Act (other than a registration effected solely to implement an employee benefit plan or in connection with the registration of shares to be issued as consideration in a business combination or share exchange, or a registration statement on Forms F-4, S-4, S-8 or any successor form thereto or another form not available for registering the Registrable Securities for sale to the public), whether for its own account or for the account of one or more other shareholders of the Company and the form of Registration Statement to be used may be used for any registration of Registrable Securities (a “Piggyback Registration”), the Company shall give prompt written notice (in any event no later than fifteen (15) days prior to the filing of such Registration Statement) to the Shareholders of its intention to effect such a registration and, subject to Section 5.02(b) shall include in such registration all Registrable Securities held by the Shareholders with respect to which the Company has received written requests for inclusion from any Shareholder within ten (10) days after the Company’s notice has been given. The Company may postpone or withdraw the filing or the effectiveness of a Piggyback Registration at any time in its sole discretion, without prejudice, however, to the right of a Shareholder to immediately request that such registration be effected as a Demand Registration. A Piggyback Registration shall not be considered a Demand Registration for purposes of Section 5.01 of this Agreement.

 

(b)                                 If a Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company and the managing underwriter advises the Company and the holders of Registrable Securities (if any holders of Registrable Securities have elected to include Registrable Securities in such Piggyback Registration) in writing that in its opinion the number of Common Shares proposed to be included in such registration, including all Registrable Securities and all other Common Shares proposed to be included in such underwritten offering, exceeds the number of Common Shares which can be sold in such offering and/or that the number of Common Shares proposed to be included in any such registration would adversely affect the price per share of the Common Shares to be sold in such offering, the Company shall include in such registration (i) first, the number of Common Shares that the Company proposes to sell, (ii) second, the number of Common Shares requested to be included therein by holders of Registrable Securities, allocated pro rata among all such Shareholders on the basis of the number of Registrable Securities owned by each such Shareholder or in such manner as they may otherwise agree; and (iii) third, the number of Common Shares requested to be included therein by holders of Common Shares (other than holders of Registrable Securities), allocated among such holders in such manner as they may agree.

 

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(c)                                  If a Piggyback Registration is initiated as an underwritten offering on behalf of a holder of Common Shares other than Registrable Securities, and the managing underwriter advises the Company in writing that in its opinion the number of shares of Common Shares proposed to be included in such registration, including all Registrable Securities and all other Common Shares proposed to be included in such underwritten offering, exceeds the number of Common Shares which can be sold in such offering and/or that the number of Common Shares proposed to be included in any such registration would adversely affect the price per Common Share to be sold in such offering, the Company shall include in such registration (i) first, the number of Common Shares requested to be included therein by the Shareholder(s) requesting such registration and by the holders of Registrable Securities, allocated pro rata among such Shareholders on the basis of the number of Common Shares (on a fully diluted, as converted basis) and the number of Registrable Securities, as applicable, owned by all such Shareholders or in such manner as they may otherwise agree; and (ii) second, the number of Common Shares requested to be included therein by other holders of Common Shares, allocated among such holders in such manner as they may agree.

 

(d)                                 If any Piggyback Registration is initiated as a primary underwritten offering on behalf of the Company, the Company shall select the investment banking firm or firms to act as the managing underwriter or underwriters in connection with such offering.

 

Section 5.03                            Lock-Up Agreement. Each Shareholder agrees that in connection with an Initial Public Offering or any public offering of Capital Stock, and upon the request of the managing underwriter in such offering, it shall not, without the prior written consent of such managing underwriter and subject to customary exceptions, during a period beginning on seven (7) days prior to the effectiveness of such Registration Statement and ending on the earlier of (i) 180 days for the Initial Public Offering or 90 days for any other public offering and (ii) such lesser period as any other Shareholder shall agree to (the “Lock Up Period”), (a) offer, pledge, sell, contract to sell, grant any option or contract to purchase, purchase any option or contract to sell, hedge the beneficial ownership of or otherwise dispose of, directly or indirectly, any Common Shares or any securities convertible into, exercisable for or exchangeable for Common Shares, or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Common Shares or such other securities, in cash or otherwise. The foregoing provisions of this Section 5.03 shall be applicable to any Shareholder only if all Shareholders are subject to the same restrictions.

 

Section 5.04                            Registration Procedures.

 

(a)                                 If and whenever any Shareholder requests that any Registrable Securities be registered pursuant to the provisions of this Agreement, the Company shall use its commercially reasonable best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company shall as soon as reasonably practicable:

 

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(i)                                     subject to Section 5.01(a) and Section 5.01(b), prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use its reasonable best efforts to cause such Registration Statement to become effective;

 

(ii)                                  prepare and file with the Commission such amendments, post-effective amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective until all of such Registrable Securities have been disposed of, or, if earlier, in the case of a Long-Form Registration, for a period of not less than 180 days, and to comply with the provisions of the Securities Act with respect to the disposition of such Registrable Securities in accordance with the intended methods of disposition set forth in such Registration Statement;

 

(iii)                               within a reasonable time before filing such Registration Statement, Prospectus or amendments or supplements thereto, furnish to each Shareholder and one counsel for the holders of Registrable Securities participating in such registration as a group (selected by the holders of a majority of the Registrable Securities included in the registration) copies of such documents proposed to be filed with the Commission, which documents shall be subject to the review, comment and reasonable approval of such counsel;

 

(iv)                              notify such selling Shareholders promptly after the Company receives notice thereof, of the time when such Registration Statement has been declared effective or a supplement to any Prospectus forming a part of such Registration Statement has been filed;

 

(v)                                 furnish to such selling Shareholders such number of copies of the Prospectus included in such Registration Statement (including each preliminary Prospectus) and any supplement thereto (in each case including all exhibits and documents incorporated by reference therein) and such other documents as such selling Shareholders may reasonably request in order to facilitate the disposition of the Registrable Securities;

 

(vi)                              use its reasonable best efforts to register or qualify such Registrable Securities under such other securities or “blue sky” laws of such jurisdictions as such selling Shareholders reasonably request and do any and all other acts and things which may be reasonably necessary or advisable to enable such selling Shareholders to consummate the disposition in such jurisdictions of the Registrable Securities; provided, that the Company shall not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required to do so but for this Section 5.04(a)(vi);

 

(vii)                           notify such selling Shareholders at any time when a Prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement contains an untrue statement of a material fact or omits any fact necessary to make the

 

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statements therein not misleading, or any supplement or amendment is required to comply with law, and, at the request of such Shareholders, the Company shall prepare a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such Prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading or comply with law;

 

(viii)                        make available for inspection by such Shareholders, any underwriter participating in any disposition pursuant to such Registration Statement and any attorney, accountant or other agent retained by such selling Shareholders or any underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”), and cause the Company’s officers, directors and employees to supply all information reasonably requested by any such Inspector in connection with such Registration Statement and customary in such a transaction;

 

(ix)                              provide a transfer agent and registrar (which may be the same entity) and obtain a CUSIP number for all such Registrable Securities not later than the effective date of such registration;

 

(x)                                 use its reasonable best efforts to cause such Registrable Securities to be listed on each national securities exchange on which the Common Shares are then listed or, if the Common Shares are not then listed, on the NYSE or Nasdaq;

 

(xi)                              in connection with an underwritten offering, enter into such customary agreements (including underwriting and lock-up agreements in customary form) and take all such other customary actions as such selling Shareholders or the managing underwriter of such offering reasonably request in order to expedite or facilitate the disposition of such Registrable Securities, including, without limitation, making any necessary filings and taking any actions necessary to comply with the requirements of the Financial Industry Regulatory Authority, Inc., and making appropriate officers of the Company available to participate in “road show” and other customary marketing activities (including one-on-one meetings with prospective purchasers of the Registrable Securities);

 

(xii)                           otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission and make available to its shareholders an earnings statement (in a form that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder) no later than thirty (30) days after the end of the 12-month period beginning with the first day of the Company’s first full fiscal quarter after the effective date of such Registration Statement, which earnings statement shall cover said 12-month period, and which requirement will be deemed to be satisfied if the Company timely files complete and accurate information on Forms 10-Q, 10-K and 8-K under the Exchange Act and otherwise complies with Rule 158 under the Securities Act;

 

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(xiii)                        furnish to such selling Shareholders and each underwriter, if any, with (i) a legal opinion of the Company’s outside counsel, dated the effective date of such Registration Statement (and, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement), in form and substance as is customarily given in opinions of the Company’s counsel to underwriters in underwritten public offerings; and (ii) a “comfort” letter signed by the Company’s independent certified public accountants in form and substance as is customarily given in accountants’ letters to underwriters in underwritten public offerings;

 

(xiv)                       without limiting Section 5.04(a)(vi) above, use its reasonable best efforts to cause such Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the holders of such Registrable Securities to consummate the disposition of such Registrable Securities in accordance with their intended method of distribution thereof;

 

(xv)                          notify such selling Shareholders promptly of any request by the Commission for the amending or supplementing of such Registration Statement or Prospectus or for additional information;

 

(xvi)                       advise such selling Shareholders promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceeding for such purpose and promptly use its reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued;

 

(xvii)                    to the extent deemed to be an underwriter or a controlling person of the Company, to permit such selling Shareholders to participate in the preparation of such Registration Statement and to require the insertion therein of language, furnished to the Company in writing, which in the reasonable judgment of such Shareholder and its counsel should be included;

 

(xviii)                 otherwise use its reasonable best efforts to take all other steps necessary to effect the registration of such Registrable Securities contemplated hereby.

 

(b)                                 Expenses. All expenses (other than Selling Expenses) incurred by the Company in complying with its obligations pursuant to this Agreement and in connection with the registration and disposition of Registrable Securities, including, without limitation, all registration and filing fees, underwriting expenses (other than fees, commissions or discounts), expenses of any audits incident to or required by any such registration, fees and expenses of complying with securities and “blue sky” laws, printing expenses, fees and expenses of the Company’s counsel and accountants, and reasonable fees and expenses of one counsel for the holders of Registrable Securities participating in such registration as a group (selected by the holders of a majority of the Registrable Securities included in the registration) shall be paid by the Company in connection with any Short-Form Registration and up to three Long-Form Registrations. All Selling

 

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Expenses relating to Registrable Securities registered pursuant to this Agreement shall be borne and paid by the holders of such Registrable Securities, in proportion to the number of Registrable Securities registered for each such Shareholder.

 

Section 5.05                            Indemnification.

 

(a)                                 The Company shall indemnify and hold harmless, to the fullest extent permitted by law, each holder of Registrable Securities, such holder’s officers, directors, managers, members, partners, stockholders and Affiliates, each underwriter, broker or any other Person acting on behalf of such holder of Registrable Securities and each other Person, if any, who controls any of the foregoing Persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against all losses, claims, actions, damages, liabilities and expenses, joint or several, to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance; and shall reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, action, damage or liability, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder expressly for use therein or by such holder’s failure to deliver a copy of the Registration Statement, Prospectus, free-writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendments or supplements thereto (if the same was required by Applicable Law to be so delivered) after the Company has furnished such holder with a sufficient number of copies of the same a reasonable amount of time prior to any written confirmation of the sale of Registrable Securities.

 

(b)                                 In connection with any Registration Statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus and, to the extent permitted by law, shall indemnify and hold harmless, the Company, each director of the Company, each officer of the Company who shall sign such Registration Statement, each underwriter, broker and each Person who controls any of the foregoing Persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any losses, claims, actions, damages, liabilities or expenses resulting from any untrue or alleged untrue statement of material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement thereto

 

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or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such holder; provided, that the obligation to indemnify shall be limited to the net proceeds (after underwriting fees, commissions or discounts) actually received by such holder from the sale of Registrable Securities pursuant to such Registration Statement.

 

(c)                                  Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in this Section 5.05, such indemnified party shall, if a claim in respect thereof is made against an indemnifying party, give written notice to the latter of the commencement of such action. The failure of any indemnified party to notify an indemnifying party of any such action shall not (unless such failure shall have a material adverse effect on the indemnifying party) relieve the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and to assume the defense of the claims in any such action that are subject or potentially subject to indemnification hereunder, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after written notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof; provided, that if (i) any indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict with those available to the indemnifying party, or that such claim or litigation involves or could have an effect upon matters beyond the scope of the indemnity provided hereunder, or (ii) such action seeks an injunction or equitable relief against any indemnified party or involves actual or alleged criminal activity, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party without such indemnified party’s prior written consent (but, without such consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such indemnified party and any Person controlling such indemnified party for that portion of the fees and expenses of any counsel retained by the indemnified party which is reasonably related to the matters covered by the indemnity provided hereunder. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. In such instance, the conflicting indemnified parties shall have a right to retain one separate counsel, chosen by the holders of the Registrable Securities included in the registration, at the expense of the indemnifying party. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification may be sought hereunder (whether or

 

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not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (x) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (y) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party. The indemnification provided for hereunder shall not apply to amounts paid in settlement of any such claim referred to in this Section 5.05 if such settlement is effected without the prior written consent of the indemnifying party (which consent shall not be unreasonably withheld or delayed).

 

(d)                                 If the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable considerations; provided, that the maximum amount of liability in respect of such contribution shall be limited, in the case of each holder of Registrable Securities, to an amount equal to the net proceeds (after underwriting fees, commissions or discounts) actually received by such holder from the sale of Registrable Securities effected pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant hereto were determined by pro rata allocation or by any other method or allocation which does not take account of the equitable considerations referred to herein. No Person guilty or liable of fraudulent misrepresentation shall be entitled to contribution from any Person.

 

Section 5.06                            Participation in Underwritten Registrations. No Person may participate in any registration hereunder which is underwritten unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements.

 

Section 5.07                            Rule 144 Compliance. With a view to making available to the holders of Registrable Securities the benefits of Rule 144 under the Securities Act and any other rule or regulation of the Commission that may at any time permit a holder to sell securities of the Company to the public without registration or pursuant to a registration on Form F-3 or S-3 (or any successor form), the Company shall:

 

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(i)                             make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the Registration Date;

 

(ii)                          use reasonable best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act, at any time after the Company has become subject to such reporting requirements; and

 

(iii)                       furnish to any holder so long as the holder owns Registrable Securities, promptly upon request, a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act and of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed or furnished by the Company as such holder may reasonably request in connection with the sale of Registrable Securities without registration.

 

Section 5.08                            Preservation of Rights. The Company shall not (a) grant any registration rights to Persons other than the Shareholders which are more favorable than or inconsistent with the rights granted hereunder, or (b) enter into any agreement, take any action, or permit any change to occur, with respect to its securities that violates or subordinates the rights expressly granted to the holders of Registrable Securities in this Agreement.

 

Section 5.09                            Termination. This Article V shall terminate and be of no further force or effect when there shall no longer be any Registrable Securities outstanding.

 

ARTICLE VI

COVENANTS

 

Section 6.01

 

(a)                                 The Company covenants that:

 

(i)                                     it shall use its commercially reasonable best efforts to begin, not later than November 4, 2013, the processes and procedures necessary to commence an offering and sale of between $150 and $250 million of its Common Shares in a Norwegian private placement pursuant to Rule 144A and Regulation S under the Securities Act (the “Private Placement”), and shall use its commercially reasonable best efforts to complete the Private Placement as soon as practicable thereafter. Notwithstanding any other provision of this Agreement, including without limitation Article III hereof, Scorpio shall have the right to purchase from the Company in the Private Placement that number of Common Shares such that, immediately following such offering, Scorpio would own 30% of the issued and outstanding Common Shares of the Company;

 

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(ii)                                  it shall appoint an internationally recognized underwriter to conduct an Initial Public Offering of its Common Shares in a public offering pursuant to an effective registration statement under the Securities Act not later than November 30, 2013 and use its commercially reasonable best efforts to file a registration statement under the Securities Act for an Initial Public Offering and to have the Common Shares approved for listing on the New York Stock Exchange (the “NYSE”) or the Nasdaq Global Select Market (the “Nasdaq”) by June 30, 2014; and

 

(iii)                               it shall use its commercially reasonable best efforts to, concurrently with the Initial Public Offering, conduct an exchange offer pursuant to the Securities Act pursuant to which the Company shall offer to exchange the Common Shares traded on the Norwegian OTC (other than Common Shares held by Affiliates of the Company) for identical Common Shares registered under the Securities Act and qualified for listing on the NYSE or the Nasdaq.

 

(b)                                 Scorpio covenants that:

 

(i)                                     prior to the earlier of (x) the completion of the Initial Public Offering and (y) the date on which Scorpio may exercise its demand or piggyback registration rights pursuant to Article V of this Agreement, it will not sell in the aggregate more than ten percent (10%) of the largest number of the Common Shares held by it at any time, provided however, that such restriction shall not limit or reduce the number of Shares that Scorpio shall be entitled to transfer by means of any Shareholder Distribution or to sell in any Tag-along Sale pursuant to Section 4.02;

 

(ii)                                  prior to the earlier of (x) the completion of the Initial Public Offering and (y) the date on which Scorpio may exercise its demand or piggyback registration rights pursuant to Article V of this Agreement, Scorpio shall not at any time hold more than thirty-two percent (32.0%) of the Company’s issued and outstanding Common Shares;

 

(iii)                               it agrees to invest together with Seador at the Company’s request in the Private Placement in an aggregate amount to be determined by the Company of up to $150 million, which amount includes participation by Seador, if any, provided, however, that in no event shall Scorpio or any other Shareholder be obligated to invest any amount that, following the completion of the Private Placement, would result in such Shareholder owning more than thirty-two percent (32.0%) of the Company’s issued and outstanding Common Shares.

 

(c)                                  Each Shareholder covenants that:

 

(i)                                     until the earlier of April 27, 2015 and the date that Scorpio ceases to be entitled to appoint one director to the board pursuant to Section 2.01, it will not compete with the Company, either directly or indirectly through their Affiliates, in the business of owning and operating VLGC and LGC vessels. Nothing in the foregoing shall (a) restrict a Shareholder from owning a minority, non-controlling interest in a company that owns and operates VLGC and LGC vessels, so long as such Shareholder does not

 

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participate in the management such company or (b) restrict a Shareholder from owning or operating other types of gas carriers; and

 

(ii)           until the earlier of (i) the consummation of the Initial Public Offering or (ii) the Listing, it will not enter into any other agreement or arrangement relating to voting of the Common Shares.

 

Section 6.02         Other Business Activities. Subject to Section 6.01(c)(i), the parties hereto, including the Company, expressly acknowledge and agree that: (i) the Shareholders are permitted to have, and presently do have, investments or other business or strategic relationships, ventures, agreements or other arrangements with entities other than the Company that are engaged in the business of the Company or any Company Subsidiary, or that are or may be competitive with the Company or any Company Subsidiary (any such other investment or relationship, an “Other Business”); (ii) none of the Shareholders or their its Affiliates will be prohibited by virtue of the Shareholder’s investment in the Company from pursuing and engaging in any Other Business; (iii) none of the Shareholder or its Affiliates will be obligated to inform the Company or any other Shareholder of any opportunity, relationship or investment in any Other Business (a “Company Opportunity”) or to present any Company Opportunity to the Company, and the Company hereby renounces any interest in any Company Opportunity and any expectancy that a Company Opportunity will be offered to it; (iv) nothing contained herein shall limit, prohibit or restrict the Scorpio Director from serving on the board of directors or other governing body or committee of any Other Business; and (v) no other Shareholder will acquire, be provided with an option or opportunity to acquire, or be entitled to any interest or participation in any Other Business as a result of the participation therein of any of the Shareholders or their Affiliates.

 

Section 6.03         Financial Statements. The Company shall furnish to each Shareholder the following reports:

 

(a)           Annual Financial Statements. As soon as available, and in any event within ninety (90) days after the end of each Fiscal Year, audited consolidated balance sheets of the Company and any Company Subsidiaries as at the end of each such Fiscal Year and audited consolidated statements of income, cash flows and stockholders’ equity for such Fiscal Year, in each case setting forth in comparative form the figures for the previous Fiscal Year, accompanied by the certification of independent certified public accountants of recognized national standing selected by the Board, certifying to the effect that, except as set forth therein, such financial statements have been prepared in accordance with GAAP, and fairly present in all material respects the financial condition of the Company and Company Subsidiaries as of the dates thereof and the results of their operations and changes in their cash flows and stockholders’ equity for the periods covered thereby. Within forty-five (45) days after the end of each Fiscal Year, the Company shall provide Scorpio and Seador with good-faith estimates of the consolidated statements of income, cash flows and stockholders’ equity for such Fiscal Year.

 

(b)           Quarterly Financial Statements. As soon as available, and in any event within forty-five (45) days after the end of each quarterly accounting period in each Fiscal Year (other than the last fiscal quarter of the Fiscal Year), unaudited consolidated

 

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balance sheets of the Company and Company Subsidiaries as at the end of each such fiscal quarter and for the current Fiscal Year to date and unaudited consolidated statements of income, cash flows and stockholders’ equity for such fiscal quarter and for the current Fiscal Year to date, in each case setting forth in comparative form the figures for the corresponding periods of the previous Fiscal Year, all in reasonable detail and all prepared in accordance with GAAP, consistently applied (subject to normal year-end audit adjustments and the absence of notes thereto), and certified by the principal financial or accounting officer of the Company. Within thirty (30) days after the end of each fiscal quarter, the Company shall provide Scorpio and Seador with good-faith estimates of the consolidated statements of income, cash flows and stockholders’ equity for such fiscal quarter and the current Fiscal Year to date.

 

(c)           The covenants contained in this Section 6.03 shall terminate upon the earlier of (i) the consummation of the Initial Public Offering or (ii) the Listing.

 

Section 6.04         Inspection Rights. Upon reasonable notice from any Shareholder, the Company shall, and shall cause its directors, officers and employees to, afford such Shareholder and its Representatives reasonable access during normal business hours to (i) the Company’s and the Company Subsidiaries’ offices and facilities, (ii) the corporate, financial and similar records, reports and documents of the Company and the Company Subsidiaries, including, without limitation, all books and records, internal management documents and reports of operations, and to permit such Shareholder and its Representatives to examine such documents and make copies thereof at such Shareholder’s expense, and (iii) the Company’s and the Company Subsidiaries’ officers, senior employees and, with the Company’s prior consent, not to be unreasonably withheld, the Company’s public accountants. The covenants contained in this Section 6.04 shall terminate upon the earlier of (i) the consummation of the Initial Public Offering or (ii) the Listing.

 

ARTICLE VII

REPRESENTATIONS AND WARRANTIES

 

Section 7.01         Representations and Warranties. Each Shareholder, severally and not jointly, represents and warrants to the Company that:

 

(a)           Each Shareholder is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation.

 

(b)           Each Shareholder has full capacity, corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement, the performance of its obligations hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action of such Shareholder. Such Shareholder has duly executed and delivered this Agreement.

 

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(c)           This Agreement constitutes the legal, valid and binding obligation of such Shareholder, enforceable against such Shareholder in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby, require no action by or in respect of, or filing with, any Governmental Authority.

 

(d)           The execution, delivery and performance by each Shareholder of this Agreement and the consummation of the transactions contemplated hereby do not (i) conflict with or result in any violation or breach of any provision of any of the organizational documents of such Shareholder, (ii) conflict with or result in any violation or breach of any provision of any Applicable Law or (iii) require any consent or other action by any Person under any provision of any material agreement or other instrument to which the Shareholder is a party.

 

(e)           Except for this Agreement, each Shareholder has not entered into or agreed to be bound by any other agreements or arrangements of any kind with any other party with respect to any Shares of the Company, including agreements or arrangements with respect to the acquisition or disposition of any such Shares or any interest therein or the voting of any Shares (whether or not such agreements and arrangements are with the Company or any other Shareholder).

 

(f)            Subject to the other provisions of this Agreement, the representations and warranties contained herein shall survive the date of this Agreement and shall remain in full force and effect for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof).

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.01         Expenses. Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with the preparation and execution of this Agreement, or any amendment or waiver hereof, and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

 

Section 8.02         Further Assurances. In connection with this Agreement and the transactions contemplated hereby, the Company and each Shareholder hereby agrees, at the request of the Company or any other Shareholder, to execute and deliver such additional documents, instruments, conveyances and assurances and to take such further actions as may be required to carry out the provisions hereof and give effect to the transactions contemplated hereby.

 

Section 8.03         Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to

 

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have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 8.03):

 

If to the Company:

 

c/o Dorian LPG (USA) LLC

27 Signal Road

Stamford, CT 06878

Tel: (203) 978-1234

Fax: (203) 359-8159

Email: john.hadjipateras@dorianlpg.com

Attention: President

 

with a copy (which shall not constitute notice) to:

 

Seward & Kissel LLP

Attention: Gary J. Wolfe, Esq.

One Battery Park Plaza

New York, NY 10004

Facsimile: (212) 480-8421

E-mail: wolfe@sewkis.com

 

If to Seador:

 

c/o SEACOR Holdings Inc.

2200 Eller Drive

P.O. Box 13038

Fort Lauderdale, FL

Facsimile No.: (954) 527-1772

Email: probinson@ckor.com

Attention: Paul L. Robinson

 

If to Dorian Holdings:

 

c/o Dorian (Hellas) S.A.

102/-104 Kolokotroni Street

Piraeus 185 35, Greece

Email: markakis@dorian-hellas.gr

Attention: President

 

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If to Scorpio:

 

Scorpio Tankers Inc.

9 Boulevard Charles III

Monaco, 98000

Facsimile: +377-97-77-83-46

E-mail: legal@scorpiogroup.net

Attention: General Counsel

 

with a copy (which shall not constitute notice) to:

 

Seward & Kissel LLP

Attention: Edward S. Horton, Esq.

One Battery Park Plaza

New York, NY 10004

Facsimile: (212) 480-8421

E-mail: horton@sewkis.com

 

Section 8.04         Headings. The headings in this Agreement are inserted for convenience or reference only and are in no way intended to describe, interpret, define, or limit the scope, extent or intent of this Agreement or any provision of this Agreement.

 

Section 8.05         Severability. If any term or provision of this Agreement is held to be invalid, illegal or unenforceable under Applicable Law in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

Section 8.06         Entire Agreement. This Agreement, together with the Purchase Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.

 

Section 8.07         Successors and Assigns; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement may not be assigned by any Shareholder except as provided in this Agreement (or as otherwise consented to in a prior writing by the other Shareholders) and any such assignment in violation of this Agreement shall be null and void.

 

Section 8.08         No Third-party Beneficiaries. This Agreement is for the sole benefit of the parties hereto (and their respective heirs, executors, administrators,

 

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successors and assigns) and nothing herein, express or implied, is intended to or shall confer upon any other Person, including any creditor of the Company, any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 8.09         Amendment. No provision of this Agreement may be amended or modified except by an instrument in writing executed by the Company and the Shareholders. Any such written amendment or modification will be binding upon the Company and each Shareholder.

 

Section 8.10         Waiver. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 8.11         Governing Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction).

 

Section 8.12         Submission to Jurisdiction. The parties hereby agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract, tort or otherwise, shall be brought in the Federal courts of the United States located in the City and County of New York, Borough of Manhattan, unless any such Federal court determines that it lacks jurisdiction, in which case such proceeding shall be instituted in the courts of the State of New York, in each case located in the City and County of New York, Borough of Manhattan. Each of the parties hereby irrevocably consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient form. Service of process, summons, notice or other document by certified or registered mail to the address set forth in Section 8.03 shall be effective service of process for any suit, action or other proceeding brought in any such court.

 

Section 8.13         Waiver of Jury Trial. Each party hereto hereby acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues and, therefore, each such party

 

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irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Section 8.14         Equitable Remedies. Each party hereto acknowledges that a breach or threatened breach by such party of any of its obligations under this Agreement would give rise to irreparable harm to the other parties, for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations, each of the other parties hereto shall, in addition to any and all other rights and remedies that may be available to them in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).

 

Section 8.15         Attorneys’ Fees. In the event that any party hereto institutes any legal suit, action or proceeding, including arbitration, against another party in respect of a matter arising out of or relating to this Agreement, the prevailing party in the suit, action or proceeding shall be entitled to receive, in addition to all other damages to which it may be entitled, the costs incurred by such party in conducting the suit, action or proceeding, including reasonable attorneys’ fees and expenses and court costs.

 

Section 8.16         Remedies Cumulative. The rights and remedies under this Agreement are cumulative and are in addition to and not in substitution for any other rights and remedies available at law or in equity or otherwise.

 

Section 8.17         Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

Section 8.18         Legend. In addition to any other legend required by Applicable Law, all certificates representing issued and outstanding Capital Stock shall bear a legend substantially in the following form:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A SHAREHOLDERS AGREEMENT AMONG THE COMPANY AND CERTAIN OF ITS SHAREHOLDERS, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH SHAREHOLDERS AGREEMENT.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR

 

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UNDER ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER SUCH ACT AND LAWS, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

	
 
    	
The Company:
    
	
 
    	
 
    
	
 
    	
DORIAN LPG LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Alexander Ciaputa
    
	
 
    	
Name:
    	
Alexander Ciaputa
    
	
 
    	
Title:
    	
Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
The Shareholders:
    
	
 
    	
 
    
	
 
    	
SCORPIO TANKERS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian M. Lee
    
	
 
    	
Name:
    	
Brian M. Lee
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
DORIAN HOLDINGS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Hadjipateras
    
	
 
    	
Name:
    	
John Hadjipateras
    
	
 
    	
Title:
    	
Pres.
    
	
 
    	
 
    
	
 
    	
SEADOR HOLDING LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matt Cenac
    
	
 
    	
Name:
    	
Matt Cenac
    
	
 
    	
Title:
    	
Vice President
    
				

 

38Exhibit 10.3

 

PURCHASE AGREEMENT

 

between

 

DORIAN LPG LTD.

 

and

 

SCORPIO TANKERS INC.

 

dated as of

 

November 26, 2013

 

 

PURCHASE AGREEMENT

 

This Purchase Agreement (this “Agreement”), dated as of November 26, 2013, is entered into between Dorian LPG Ltd., a corporation formed under the Laws of the Republic of the Marshall Islands (“Dorian”) and Scorpio Tankers Inc., a corporation formed under the Laws of the Marshall Islands (“Scorpio”).

 

RECITALS

 

Dorian wishes to issue and sell to Scorpio, and Scorpio wishes to acquire from Dorian, 39,952,123 of Dorian’s common shares, par value $0.01 per share (the “Shares”) in exchange for Scorpio’s contribution of certain newbuilding vessel contracts, all of the issued and outstanding shares of capital stock of three subsidiaries of Scorpio, and $1,930,000 of cash, subject to the terms and conditions set forth herein.

 

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

 

ARTICLE I
  DEFINITIONS

 

The following terms have the meanings specified or referred to in this Article I:

 

“Action” means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity.

 

“Affiliate” of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning set forth in the preamble.

 

“Balance Sheet” has the meaning set forth in Section 3.05.

 

“Balance Sheet Date” has the meaning set forth in Section 3.05.

 

“Business Day” means any day except Saturday, Sunday or any other day on which commercial banks located in New York, NY or the Netherlands are authorized or required by Law to be closed for business.

 

“Closing” has the meaning set forth in Section 2.04.

 

 

“Closing Date” has the meaning set forth in Section 2.04.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Collateral Source” has the meaning set forth in Section 8.07.

 

“Common Share” has the meaning set forth in Section 3.02(a).

 

“Consideration” has the meaning set forth in Section 2.02.

 

“Constitutional Documents” means all constituent documents of the Contributed Scorpio Subsidiaries, including their respective articles of incorporation and bylaws, or such other similar documents, and any agreements to which a Contributed Scorpio Subsidiary is a party.

 

“Contracts” means all contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures and all other agreements, commitments and legally binding arrangements, whether written or oral.

 

“Contributed Assets” has the meaning set forth in Section 2.02.

 

“Contributed Scorpio Newbuilding Contracts” means the shipbuilding contracts between certain Scorpio Subsidiaries and HHI in respect of Hulls No. S749, S750, S751, S752, S753, S754, S755 and S756, including any specifications, extras or change orders, amendments, addenda or agreements relating thereto.

 

“Contributed Scorpio Refund Guarantees” means, collectively, the letters of credit or guarantee issued to certain Scorpio Subsidiaries by (i) Hana Bank in respect of HHI Hulls No. S749, S750, S751, S752, S755 and S756 and (ii) Korea Exchange Bank in respect of HHI Hulls No. S753 and S754.

 

“Contributed Scorpio Subsidiaries” means collectively STI Dubai Shipping Company Limited, STI Geneva Shipping Company Limited and STI Tokyo Shipping Company Limited, each a corporation formed under the Laws of the Republic of the Marshall Islands.

 

“Contributed Shares” means, collectively, all of the issued and outstanding shares of capital stock of the Contributed Scorpio Subsidiaries.

 

“Corporate Books” has the meaning set forth in Section 2.03(a)(iv).

 

“Corporate Records” means (a) the Constitutional Documents; (b) all minutes of meetings and resolutions of stockholders and directors of each Contributed Scorpio Subsidiary; and (c) the Corporate Books.

 

“Direct Claim” has the meaning set forth in Section 8.04(c).

 

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“Dorian Disclosure Schedules” means the Disclosure Schedules delivered by Dorian concurrently with the execution and delivery of this Agreement.

 

“Dollars” or “$”  means the lawful currency of the United States.

 

“Dorian” has the meaning set forth in the preamble.

 

“Dorian Indemnitees” has the meaning set forth in Section 8.03.

 

“Dorian Corporate Guarantees” means, collectively, corporate guarantees issued by Dorian to Scorpio for any amounts payable by Scorpio in connection with the applicable corporate guarantees issued by Scorpio to DSME in respect of Hulls No. 2336, 2337 and 2338, including any specifications, extras or change orders, amendments, addenda or agreements relating thereto.

 

“Dorian’s Knowledge” or any other similar knowledge qualification, means the actual knowledge of any officer of Dorian, after due inquiry.

 

“Dorian Material Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise) or assets of Dorian, or (b) the ability of Dorian to consummate the transactions contemplated hereby on a timely basis; provided, however, that the following will not be considered when determining whether a Dorian Material Adverse Effect has occurred: (A) any general social, political or economic condition or event, the effects of which are not specific or unique to Dorian, including stock market fluctuations, exchange rate fluctuations, acts of war or terrorism, or the consequences of the foregoing; (B) the general condition of the shipping industry, including any change in general industry conditions; (C) any change in Law; (D) any change in IFRS, GAAP or other applicable accounting rules; or (E) any change resulting from the execution of this Agreement, the Transaction Documents or the consummation of any of the transactions contemplated by this Agreement and the Transaction Documents.

 

“Dorian Refund Guarantees” means, collectively, the letters of credit or guarantee issued to Dorian Subsidiaries in connection with the Novation Agreements by (i) Hana Bank in respect of HHI Hulls No. S749, S750, S751, S752, S755 and S756, and (ii) Korea Exchange Bank in respect of HHI Hulls No. S753 and S754.

 

“Dorian Subsidiaries” has the meaning set forth in Section 3.03.

 

“DSME” means Daewoo Shipbuilding & Marine Engineering Co., Ltd.

 

“DSME Shipbuilding Contracts” means, collectively, the shipbuilding contract agreements in respect of DSME Hulls No. 2336, 2337 and 2338, between the respective Contributed Scorpio Subsidiaries and DSME, as amended.

 

“Encumbrance” means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option, security interest, mortgage,

 

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easement, encroachment, right of way, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership; provided, however, that for purposes of this Agreement, the term “Encumbrance” shall not include Permitted Encumbrances.

 

“Environmental Claim” means any Action, Governmental Order, lien, fine, penalty, or, as to each, any settlement or judgment arising therefrom, by or from any Person alleging liability of whatever kind or nature (including liability or responsibility for the costs of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources damages, property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief) arising out of, based on or resulting from: (a) the presence, Release of, or exposure to, any Hazardous Materials; or (b) any actual or alleged non-compliance with any Environmental Law or term or condition of any Environmental Permit.

 

“Environmental Law” means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority: (a) relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b) concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials.

 

“Environmental Notice” means any written directive, notice of violation or infraction, or notice respecting any Environmental Claim relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit.

 

“Environmental Permit” means any Permit, letter, clearance, consent, waiver, closure, exemption, decision or other Action required under or issued, granted, given, authorized by or made pursuant to Environmental Law.

 

“GAAP” means United States generally accepted accounting principles in effect from time to time.

 

“Governmental Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Governmental Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.

 

“Hazardous Materials” means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral or gas, in each case,

 

4

 

whether naturally occurring or manmade, that is hazardous, acutely hazardous, toxic, or words of similar import or regulatory effect under Environmental Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated biphenyls.

 

“HHI” means Hyundai Samho Heavy Industries Co., Ltd.

 

“IFRS” means International Financial Reporting Standards; standards and interpretations adopted by the International Accounting Standards Board in effect from time to time.

 

“Indemnified Party” has the meaning set forth in Section 8.04.

 

“Indemnifying Party” has the meaning set forth in Section 8.04.

 

“Insurance Policies” has the meaning set forth in Section 3.12.

 

“Intellectual Property” has the meaning set forth in Section 3.10.

 

“Law” means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority.

 

“Liabilities” has the meaning set forth in Section 3.06.

 

“Losses” means losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance providers.

 

“Material Adverse Effect” means Dorian Material Adverse Effect or Scorpio Material Adverse Effect, as applicable.

 

“Material Contracts” has the meaning set forth in Section 3.08(a).

 

“Novation Agreements” means the agreements effecting the transfer of the Contributed Assets to Dorian or certain Dorian Subsidiaries on the date hereof, including the Contributed Scorpio Newbuilding Contracts and Contributed Scorpio Refund Guarantees.

 

“November Private Placement” means the approximately $250 million Norwegian private placement of Dorian’s common shares pursuant to Rule 144A and Regulation S under the Securities Act, commenced in November 2013.

 

5

 

“Permits” means all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from Governmental Authorities.

 

“Permitted Encumbrances” means (i) liens for Taxes that are not yet due and payable or that are being contested in good faith, (ii) mechanics’, workmen’s, repairmen’s, warehousemen’s, carriers’ and other statutory liens arising or incurred in the ordinary course of business that are not yet due and payable or that are not material in the amount and are being contested in good faith by appropriate proceedings, (iii) Encumbrances consisting of pledges or deposits made in connection with obligations under workers’ compensation, unemployment insurance or similar Laws, (iv) restrictions on the transferability of securities arising under applicable securities Laws or the Transaction Documents; (v) liens for wages claimed by masters and seamen, claims for salvage expenses, claims for damage and masters disbursements so long as such amounts owed are not past due; (vi) liens for dock, harbor and canal charges and claims in respect of pollution damage so long as such amounts owed are not past due, (vii) other maritime liens arising or incurred in the ordinary course of business consistent with past practice or amounts that are not delinquent and which are not, individually or in the aggregate, material to Dorian’s business, and (viii) Encumbrances which are imperfections of title that are typical for the applicable type of property and do not materially detract from its value or interfere with its present or ordinary use.

 

“Person” means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

 

“RBS Credit Facility” means the Loan Agreement dated July 29, 2013 among The Royal Bank of Scotland plc, Dorian, CMNL LPG Transport LLC, CNML LPG Transport LLC, CJNP Transport LLC, and Corsair LPG Transport LLC.

 

“Release” means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building, structure, facility or fixture).

 

“Representative” means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person.

 

“Scorpio” has the meaning set forth in the preamble.

 

“Scorpio Disclosure Schedules” means the Disclosure Schedules delivered by Scorpio concurrently with the execution and delivery of this Agreement.

 

“Scorpio Indemnitees” has the meaning set forth in Section 8.02.

 

6

 

“Scorpio Material Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise) or assets of Scorpio, or (b) the ability of Scorpio to consummate the transactions contemplated hereby on a timely basis; provided, however, that the following will not be considered when determining whether a Scorpio Material Adverse Effect has occurred: (A) any general social, political or economic condition or event, the effects of which are not specific or unique to Scorpio, including stock market fluctuations, exchange rate fluctuations, acts of war or terrorism, or the consequences of the foregoing; (B) the general condition of the shipping industry, including any change in general industry conditions; (C) any change in Law; (D) any change in IFRS, GAAP or other applicable accounting rules; or (E) any change resulting from the execution of this Agreement, the Transaction Documents or the consummation of any of the transactions contemplated by this Agreement and the Transaction Documents.

 

“Scorpio Subsidiary” has the meaning set forth in Section 4.02.

 

“Shareholders Agreement” means that certain Shareholders Agreement, dated the date hereof, by and among Dorian, Scorpio, Dorian Holdings LLC and Seador Holdings LLC.

 

“Shares” has the meaning set forth in the recitals.

 

“Taxes” means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest in respect of such additions or penalties.

 

“Tax Return” means any return, declaration, report, claim for refund, information return or statement or other document relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Term Sheet” means that certain Term Sheet, dated October 27, 2013, by and among Dorian, Scorpio, Dorian Holdings LLC and Seador Holdings LLC.

 

“Third Party Claim” has the meaning set forth in Section 8.04(a).

 

“Transaction Documents” means this Agreement, the Shareholders Agreement, the Novation Agreements, the Dorian Refund Guarantees and the Dorian Corporate Guarantees.

 

“VPS” has the meaning set forth in Section 2.03(b)(iii).

 

7

 

ARTICLE II
  PURCHASE AND SALE

 

Section 2.01                            Purchase and Sale. Subject to the terms and conditions set forth herein, at or prior to the Closing, Scorpio shall, or shall cause one or more Scorpio Subsidiaries to, transfer the Contributed Assets, Contributed Shares and cash to Dorian or its designee in accordance with Section 2.03, and Dorian shall issue the Shares to Scorpio, free and clear of all Encumbrances, for the consideration specified in Section 2.02.

 

Section 2.02                            Consideration. The aggregate consideration for the issuance of the Shares shall be paid by means of the transfer of the assets set forth on Exhibit 2.02 (collectively, the “Contributed Assets”), the Contributed Shares and cash in the aggregate amount of $1,930,000 (collectively, the “Consideration”).

 

Section 2.03                            Transactions to be Effected at the Closing.

 

(a)                                 At or prior to the Closing, Scorpio shall deliver or shall have delivered to Dorian:

 

(i)                                                                                     the Shareholders Agreement executed by Scorpio;

 

(ii)                                                                                  the Novation Agreements with respect to the Contributed Scorpio Newbuilding Contracts, including related documents;

 

(iii)                                                                               stock certificates representing the Contributed Shares duly endorsed in blank or accompanied by stock powers in blank with all appropriate transfer stamps affixed thereto;

 

(iv)                                                                              the stock books, stock ledgers, minute books and corporate seals of all the Contributed Scorpio Subsidiaries (the “Corporate Books”);

 

(v)                                                                                 resignations dated or effective as of the Closing Date of the members of each Contributed Scorpio Subsidiary’s board of directors and of its officers;

 

(vi)                                                                              cash in the amount of $1,930,000, by wire transfer of immediately available funds to the account of Dorian set forth on Exhibit 2.03(a); and

 

(vii)                                                                           such other documents or instruments as Dorian reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

 

(b)                                 At or prior to the Closing, Dorian shall deliver or shall have delivered to Scorpio:

 

8

 

 

(i)                                                                                     the Shareholders Agreement executed by Dorian, Seador Holdings LLC and Dorian Holdings LLC;

 

(ii)                                                                                  the Dorian Corporate Guarantees;

 

(iii)                                                                               the Shares to Scorpio’s account in Verdipapirsentralen (the Norwegian Registry of Securities (“VPS”)) set forth on Exhibit 2.03(b);

 

(iv)                                                                              a good standing certificate (or its equivalent) of Dorian from the Republic of the Marshall Islands dated within one Business Day prior to the Closing Date; and

 

(v)                                                                                 such other documents or instruments as Scorpio reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

 

Section 2.04                            Closing. Subject to the terms and conditions of this Agreement, the purchase and sale of the Shares and transfer of the Consideration shall take place at a closing (the “Closing”) to be held at 10:00 a.m. on the date hereof, at the offices of Seward & Kissel LLP, One Battery Park Plaza, New York, New York, 10004, or at such other time or at such other place as Dorian and Scorpio may mutually agree upon in writing (the day on which the Closing takes place being the “Closing Date”).

 

ARTICLE III
  REPRESENTATIONS AND WARRANTIES OF DORIAN

 

Except as set forth in the correspondingly numbered Section of the Dorian Disclosure Schedules (it being agreed that any matter disclosed in the Dorian Disclosure Schedules with respect to any Section of this Agreement shall be deemed to have been disclosed with respect to that Section and any other Section of this Article III to the extent it is reasonably apparent that it would be applicable to such other Section), Dorian represents and warrants to Scorpio that the statements contained in this Article III are true and correct as of the Closing Date.

 

Section 3.01                            Organization and Authority. Dorian is a corporation duly organized, validly existing and in good standing under the Laws of the Republic of the Marshall Islands. Dorian has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which Dorian is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. This Agreement has been duly executed and delivered by Dorian, and (assuming due authorization, execution and delivery by Scorpio) this Agreement constitutes a legal, valid and binding obligation of Dorian, enforceable against Dorian in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). When each other Transaction Document to which Dorian is or will be a party has been duly executed and delivered by Dorian 

 

9

 

(assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Dorian enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

Section 3.02                            Capitalization.

 

(a)                                 The authorized capital stock of Dorian consists of 500,000,000 shares, of which 450,000,000 are designated as common shares, par value $0.01 (the “Common Shares”), of which 93,221,621 Common Shares are issued and outstanding, and 50,000,000 shares of preferred stock, par value $0.01 per share, of which no preferred shares are issued.  All of the issued and outstanding Common Shares have been duly authorized, are validly issued, fully paid and non-assessable.  The Shares are duly authorized and when issued in accordance with the terms of this Agreement will be validly issued, fully paid and non-assessable. Upon consummation of the transactions contemplated by this Agreement, Scorpio shall own all of the Shares, free and clear of all Encumbrances.

 

(b)                                 All of the Common Shares were, and the Shares will be, issued in compliance with all applicable Laws. None of the Common Shares were, and the Shares will not be, issued in violation of any agreement, arrangement or commitment to which Dorian is a party or is subject to or in violation of any preemptive or similar rights of any Person.

 

(c)                                  Except as set forth in Section 3.02(c) of the Dorian Disclosure Schedules, there are no outstanding or authorized options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to the capital stock obligating Dorian or any of its subsidiaries to issue or sell any shares of capital stock of, or any other interest in, Dorian or such subsidiary.  Dorian does not have outstanding or authorized any stock appreciation, phantom stock, profit participation or similar rights.

 

(d)                                 Section 3.02(d) of the Dorian Disclosure Schedules sets forth the identity and number of Common Shares held of record by each other shareholder of Dorian that holds more than ten percent (10%) of the issued and outstanding Common Shares as of the date of this Agreement.

 

Section 3.03                            Subsidiaries.  Set forth on Section 3.03 of the Dorian Disclosure Schedules is a list of each subsidiary or other entity in which Dorian owns or has any interest in (collectively the “Dorian Subsidiaries”) and lists next to each Dorian Subsidiary the Vessel owned by, or the business of, each such entity.

 

Section 3.04                            No Conflicts; Consents. The execution, delivery and performance by Dorian of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and 

 

10

 

will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the articles of incorporation, by-laws or other organizational documents of Dorian or any Dorian Subsidiary; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Dorian or any Dorian Subsidiary, except for such conflicts, violations or breaches that would not result in a Dorian Material Adverse Effect; (c) require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which Dorian or any Dorian Subsidiary is a party or by which Dorian or any Dorian Subsidiary is bound or to which any of their respective properties or assets are subject (including any Material Contract) or any Permit affecting the properties, assets or business of Dorian or any Dorian Subsidiary, except for such conflicts, violations, breaches, defaults or events that would not, individually or in the aggregate, result in a Dorian Material Adverse Effect; or (d) result in the creation or imposition of any Encumbrance on any properties or assets of Dorian or any Dorian Subsidiary, except for such Encumbrances that would not, individually or in the aggregate, result in a Dorian Material Adverse Effect. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Dorian or any Dorian Subsidiary in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby.

 

Section 3.05                            Financial Statements. A complete copy of the summary unaudited balance sheet of Dorian as at September 30, 2013 (the “Balance Sheet,” and the date thereof the “Balance Sheet Date”) has been delivered to Scorpio.  The Balance Sheet is based on Dorian’s books and records, fairly presents in all material respects the financial condition of Dorian as of the Balance Sheet Date and has been prepared in accordance with GAAP consistently applied.

 

Section 3.06                            Liabilities. Except as set forth in Section 3.06 of the Dorian Disclosure Schedules, neither Dorian or any Dorian Subsidiary has any liability, obligation or commitment of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise (“Liabilities”), except (a) those which are adequately reflected or reserved against in the Balance Sheet as of the Balance Sheet Date, and (b) those which have been incurred in the ordinary course of business consistent with past practice since the Balance Sheet Date and which, individually or in the aggregate, have not had and would not have a Dorian Material Adverse Effect.

 

Section 3.07                            Absence of Certain Changes, Events and Conditions. Except as set forth in Section 3.07 of the Dorian Disclosure Schedules, since the Balance Sheet Date, other than the entry into the Term Sheet, the Transaction Documents, the November Private Placement and any transactions contemplated therein, there has not been, with respect to Dorian or any Dorian Subsidiary, any:

 

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(a)                                 event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Dorian Material Adverse Effect;

 

(b)                                 amendment of the charter, by-laws or other organizational documents;

 

(c)                                  split, combination or reclassification of any shares of its capital stock;

 

(d)                                 issuance, sale or other disposition of any of its capital stock, or grant of any options, warrants or other rights to purchase or obtain (including upon conversion, exchange or exercise) any of its capital stock, except in the November Private Placement;

 

(e)                                  declaration or payment of any dividends or distributions on or in respect of any of its capital stock or redemption, purchase or acquisition of its capital stock;

 

(f)                                   entry into any Contract that would constitute a Material Contract other than in the ordinary course of business;

 

(g)                                  incurrence, assumption or guarantee of any indebtedness for borrowed money;

 

(h)                                 transfer, assignment, sale or other disposition of any of the assets shown or reflected in the Balance Sheet or cancellation of any debts or entitlements;

 

(i)                                     material damage, destruction or loss (constructive or actual), whether or not covered by insurance, to any material asset of Dorian or any Dorian Subsidiary;

 

(j)                                    any capital investment in, or any loan to, any other Person;

 

(k)                                 acceleration, termination, material modification to or cancellation of any material Contract (including, but not limited to, any Material Contract) to which Dorian or any Dorian Subsidiary is a party or by which it is bound;

 

(l)                                     any capital expenditures in excess of $500,000, excluding any expenditures relating to the acquisition, including any newbuilding contract for the construction of, any Vessel;

 

(m)                             imposition of any Encumbrance upon any of Dorian’s or any Dorian Subsidiaries’ Vessels, properties, capital stock or assets, tangible or intangible;

 

(n)                                 grant of any bonuses, monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation or benefits in respect of any employee, officer, director, independent contractors or consultant;

 

(o)                                 any loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders, directors, officers and employees;

 

(p)                                 adoption of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any provisions of federal or state 

 

12

 

bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar Law;

 

(q)                                 purchase, lease or other acquisition of the right to own, use or lease any property or asset for an amount in excess of $500,000, individually or in the aggregate;

 

(r)                                    acquisition by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner, any business or any Person or any division thereof; or

 

(s)                                   any Contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

Section 3.08                            Material Contracts.

 

(a)                                 Set forth in Section 3.08(a) of the Disclosure Schedules is a list of each of the following Contracts of Dorian or any Dorian Subsidiary (such Contracts, together with any Contract contemplated by one or more of the Transaction Documents, the Term Sheet or the November Private Placement, the “Material Contracts”):

 

(i)                                     Each Contract relating to the acquisition of, including any newbuilding contract for the construction of, any Vessel;

 

(ii)                                  Each Contract relating to the employment, chartering or management of any Vessel;

 

(iii)                               each Contract involving aggregate consideration in excess of $500,000 other than in the ordinary course of business;

 

(iv)                              all Contracts that provide for the indemnification by Dorian of any Person or the assumption of any Liability, including without limitation Tax, environmental or otherwise of any Person;

 

(v)                                 all Contracts that relate to the acquisition or disposition of any business, a material amount of stock or assets of any other Person or any real property (whether by merger, sale of stock, sale of assets or otherwise);

 

(vi)                              all material employment agreements or other Contracts with independent contractors or consultants (or similar arrangements) to which Dorian is a party;

 

(vii)                           all loan agreements (and any amendments, waivers or notices received thereunder) or other Contracts relating to indebtedness (including, without limitation, guarantees) of Dorian or any Dorian Subsidiary;

 

(viii)                        all Contracts with any Governmental Authority to which Dorian is a party;

 

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(ix)                              all Contracts between or among Dorian or a Dorian Subsidiary on the one hand and any Affiliate of Dorian on the other hand; and

 

(x)                                 any other Contract that is material to Dorian and not previously disclosed pursuant to this Section 3.08.

 

(b)                                 Each Material Contract is valid and binding on Dorian in accordance with its terms and is in full force and effect. None of Dorian or, to its Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) in any material respect, or has provided or received any notice of any intention to terminate, any Material Contract. No event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder.

 

Section 3.09                            Title to Assets.

 

(a)                                 Dorian has good and valid title to the Vessels and all property and other assets reflected in the Balance Sheet or acquired after the Balance Sheet Date, other than properties and assets sold or otherwise disposed of in the ordinary course of business consistent with past practice since the Balance Sheet Date. All such properties and assets are free and clear of Encumbrances.

 

Section 3.10                            Intellectual Property: “Intellectual Property” means all intangible property and related proprietary rights, interests and protections, however arising, pursuant to the Laws of any jurisdiction throughout the world, including such property that is owned by Dorian and that in which Dorian holds exclusive or non-exclusive rights or interests granted by or licensed from other Persons, including that Dorian owns or has the right to use.  Dorian has all Intellectual Property necessary to conduct its business as currently conducted, and to Dorian’s Knowledge: (i) Dorian’s conduct of its business as currently conducted does not infringe, violate, dilute or misappropriate the Intellectual Property of any Person; and (ii) no Person is infringing, violating, diluting or misappropriating any Intellectual Property.

 

Section 3.11                            Customers.

 

(a)                                 Section 3.11(a) of the Dorian Disclosure Schedules sets forth each time charterer of a Vessel (collectively, the “Material Customers”). Except as set forth in Section 3.11(a) of the Dorian Disclosure Schedules, Dorian has not received any notice, and has no reason to believe, that any of its Material Customers has ceased, or, to Dorian’s Knowledge, intends to cease after the Closing, or to terminate any Vessel charter prior to its expiration or to otherwise terminate or materially reduce its relationship with Dorian, and no Materials Customer is currently or has since January 1, 2013 been delinquent for more than thirty (30) days in the payment of any amounts owed to Dorian.

 

Section 3.12                            Insurance. Section 3.12 of the Dorian Disclosure Schedules sets forth a true and complete list of all current insurances (including without limitations 

 

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coverage under any Protection & Indemnity clubs) relating to the assets, business, operations, employees, officers and directors of Dorian (collectively, the “Insurance Policies”). Such Insurance Policies are in full force and effect and shall remain in full force and effect following the consummation of the transactions contemplated by this Agreement. Neither Dorian nor any of its Affiliates has received any written notice of cancellation of, premium increase with respect to, or alteration of coverage under, any of such Insurance Policies. Except as set forth in the Dorian Disclosure Schedules, there are no claims related to the business of Dorian pending under any such Insurance Policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation of rights. None of Dorian or any of its Affiliates is in default under, or has otherwise failed to comply with, in any material respect, any provision contained in any such Insurance Policy. The Insurance Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to Dorian and are sufficient for compliance with all applicable Laws and Contracts to which Dorian is a party or by which it is bound.

 

Section 3.13                            Legal Proceedings; Governmental Orders. There are no actions, suits, claims, investigations or other legal proceedings pending or, to Dorian’s Knowledge, threatened against or by Dorian relating to or affecting Dorian’s business or the Vessels, other assets or Dorian’s capital stock which if determined adversely to Dorian, would result in a Dorian Material Adverse Effect.  There are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting Dorian’s business, the Vessels, other assets or Dorian’s capital stock which would have a Dorian Material Adverse Effect.

 

Section 3.14                            Compliance With Laws; Permits.

 

(a)                                 Dorian and each Dorian Subsidiary is in compliance, and is now complying, in all material respects with all Laws applicable to it or its business, properties or assets, including the Vessels.

 

(b)                                 All material Permits, licenses, certificates, authorizations required for Dorian and the Dorian Subsidiaries to conduct its and their business have been obtained and are valid and in full force and effect. To Dorian’s Knowledge, no event has occurred that, with or without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, lapse or limitation of any Permit, license, certificate or authorization, which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Dorian Material Adverse Effect.

 

Section 3.15                            Environmental Matters.

 

(a)                                 Dorian and each Dorian Subsidiary is currently and has been in compliance in all material respects with all Environmental Laws and has not, and neither Dorian nor any Dorian Subsidiary has received from any Person any: (i) Environmental Notice or Environmental Claim; or (ii) written request for information pursuant to Environmental Law, which, in each case, either remains pending or unresolved, or is the source of ongoing obligations or requirements as of the Closing Date.

 

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(b)                                 Dorian has obtained and is in compliance in all material respects with all Environmental Permits necessary for the ownership, charter, operation or use of each Vessel or other assets of Dorian and all such Environmental Permits are in full force and effect and shall be maintained in full force and effect through the Closing Date in accordance with Environmental Law, and, to Dorian’s Knowledge, Dorian is not aware of any condition, event or circumstance that might prevent or impede, after the Closing Date, the ownership, charter, operation or use of any Vessel or other assets of Dorian as currently carried out.

 

(c)                                  Dorian has previously delivered to Scorpio or made available to Scorpio any and all material environmental reports, studies, audits, records, sampling data, site assessments and other similar documents with respect to its business, the vessels or any other property in the possession or control of Dorian or a Dorian Subsidiary.

 

Section 3.16                            Employment Matters.

 

(a)                                 Set forth in Section 3.16(a) of the Dorian Disclosure Schedules is a list of all persons who are material employees, officers, independent contractors or consultants of Dorian as of the date hereof, and sets forth for each such individual the following: (i) name; (ii) title or position (including whether full or part time); (iii) current annual base compensation rate any bonus paid with respect to 2012; and Dorain does not expect such payments to be materially greater with respect to 2013.

 

(b)                                 Dorian is and has been in compliance in all material respects with all applicable Laws pertaining to employment and employment practices, including all Laws relating to labor relations, equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring, promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers’ compensation, leaves of absence and unemployment insurance.

 

Section 3.17                            Taxes.

 

(a)                                 All Tax Returns required to be filed on or before the Closing Date by Dorian or any Dorian Subsidiary have been, or will be, timely filed. Such Tax Returns are, or will be, true, complete and correct in all respects. All Taxes due and owing by Dorian (whether or not shown on any Tax Return) have been, or will be, timely paid, and no extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of Dorian.

 

(b)                                 Dorian has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, customer, shareholder or other party, and complied with all information reporting and backup withholding provisions of applicable Law.

 

(c)                                  No claim has been made by any taxing authority in any jurisdiction where Dorian does not file Tax Returns that it is, or may be, subject to Tax by that jurisdiction.

 

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(d)                                 Dorian is not a party to any Action by any taxing authority. There are no pending or threatened Actions by any taxing authority.

 

(e)                                  Dorian has made available to Scorpio copies of all federal, state, local and foreign income, franchise and similar Tax Returns, examination reports, and statements of deficiencies assessed against, or agreed to by, Dorian for all Tax periods.

 

(f)                                   There are no Encumbrances for Taxes (other than for current Taxes not yet due and payable) upon the assets of Dorian.

 

Section 3.18                                        Brokers.  No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Dorian.

 

Section 3.19                                        No Registration Rights to the Shares.  Except as set forth in the Transaction Documents, there are no contracts, agreements or understandings between Dorian and any person granting such person the right to require Dorian to file a registration statement under the Securities Act with respect to securities of Dorian.

 

Section 3.20                                        Investment Act of 1940.  Dorian is not, and after giving effect to the sale of the Shares will not be, required to register as an “investment company” as such term is defined in the Investment Act of 1940, as amended.

 

Section 3.21                                        Anti-Bribery.  Neither Dorian nor any Dorian Subsidiary, nor to Dorian’s Knowledge any of their affiliates, directors, officers, or employees, any of their agents or representatives, has taken any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any “government official” (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to influence official action or secure an improper advantage; and Dorian and its subsidiaries, and to Dorian’s Knowledge, its affiliates have conducted their businesses in compliance in all material respects with applicable anti-corruption Laws and have instituted and maintain and will continue to maintain policies and procedures designed to promote and achieve compliance with such Laws and with the representation and warranty contained herein.

 

Section 3.22                                        Sanctions.  (i) Neither Dorian nor any Dorian Subsidiary, nor to Dorian’s Knowledge, any of their respective directors, officers, employees, agents, affiliate or representative, is a Person that is, or is owned or controlled by a Person that is:

 

(i)                                     the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council (“UNSC”), the European Union (“EU”), Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor

 

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(ii)                                  located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran, Libya, North Korea, Sudan and Syria).

 

(b)                                 Dorian represents and covenants that it will not, directly or indirectly, use the Contributed Assets, Contributed Shares or other Consideration received in this transaction or lend or otherwise make available such Consideration to any subsidiary, joint venture partner or other Person:

 

(i)                                                 to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions; or

 

(ii)                                  in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).

 

Section 3.23                                        No Restrictions on Dividends.  Other than restrictions contained in the RBS Credit Facility, no Dorian Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to Dorian, from making any other distribution on such Subsidiary’s capital stock, from repaying to Dorian any loans or advances to such subsidiary from Dorian or from transferring any of such subsidiary’s property or assets to Dorian or any other subsidiary of Dorian.

 

Section 3.24                                        Ownership of Vessels.  All of the Vessels set forth in Section 3.25 of the Dorian Disclosure Schedules are owned directly by subsidiaries of Dorian and each such Vessel has been duly registered in the name of the relevant entity that owns it under the Laws and regulations and the flag of the nation of its registration, as set forth in Section 3.25 of the Dorian Disclosure Schedules free and clear of all Encumbrances other than security liens subject to the RBS Credit Facility

 

Section 3.25                                        Full Disclosure. To Dorian’s Knowledge, no representation or warranty by Dorian in this Agreement and no statement contained in the Dorian Disclosure Schedules to this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

 

Section 3.26                                        NO OTHER REPRESENTATIONS OR WARRANTIES.  OTHER THAN THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS ARTICLE III, DORIAN MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, RELATING TO DORIAN, THE TRANSACTIONS CONTEMPLATED HEREBY, OR ANY OTHER MATTERS INCLUDING ANY REPRESENTATION OR WARRANTY AS TO FINANCIAL PROJECTIONS, AND ANY SUCH OTHER REPRESENTATION OR WARRANTY IS HEREBY DISCLAIMED.

 

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ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF SCORPIO

 

Except as set forth in the correspondingly numbered Section of the Scorpio Disclosure Schedules, Scorpio, on behalf of itself and each Scorpio Subsidiary, represents and warrants to Dorian that the statements contained in this Article IV are true and correct as of the Closing Date.

 

Section 4.01                            Organization and Authority. Each of Scorpio and the Scorpio Subsidiaries is a corporation duly organized, validly existing and in good standing under the Laws of the Marshall Islands. Each of Scorpio and the Scorpio Subsidiaries has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which each is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Scorpio or the Scorpio Subsidiaries, as the case may be, of this Agreement and any other Transaction Document to which each is a party, the performance by Scorpio and the Scorpio Subsidiaries  of their obligations hereunder and thereunder and the consummation by Scorpio and the Scorpio Subsidiaries of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Scorpio and the Scorpio Subsidiaries. This Agreement has been duly executed and delivered by Scorpio, and (assuming due authorization, execution and delivery by Dorian) this Agreement constitutes a legal, valid and binding obligation of Scorpio enforceable against Scorpio in accordance with its terms. When each other Transaction Document to which Scorpio or the Scorpio Subsidiaries is or will be a party has been duly executed and delivered by Scorpio (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Scorpio or the Scorpio Subsidiaries enforceable against it in accordance with its terms.

 

Section 4.02                            Contributed Scorpio Subsidiaries.

 

(a)                                 Set forth on Section 4.02(a) of the Scorpio Disclosure Schedules is a list of each Subsidiary of Scorpio which owns the Contributed Assets and of the Contributed Scorpio Subsidiaries (collectively, the “Scorpio Subsidiaries”) and lists next to each Scorpio Subsidiary the vessel owned by, or the business of, each such entity.

 

(b)                                 Scorpio has heretofore delivered to Dorian complete and correct copies of the Constitutional Documents as currently in effect.  The Corporate Records are accurate in all material respects and all corporate proceedings and actions reflected therein have been conducted or taken in compliance with all applicable Laws and in compliance with the Constitutional Documents.  None of the Contributed Scorpio Subsidiaries is in default under or in violation of its Constitutional Documents.

 

(c)                                  The Contributed Shares constitute all of the issued and outstanding shares of capital stock of each Contributed Scorpio Subsidiary, all such shares are duly authorized, validly issued, fully paid and non-assessable and are owned legally and

 

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beneficially by Scorpio.  Other than this Agreement, there is no subscription, option, warrant, preemptive right, call right or other right, agreement or commitment of any nature relating to the voting, issuance, sale, delivery or transfer (including any right of conversion or exchange under any outstanding security or other instruments) relating to the Contributed Shares or any other capital or voting interests of any Contributed Scorpio Subsidiary, whether issued or unissued and there is no obligation on the part of Scorpio or any Contributed Scorpio Subsidiary to grant, extend or enter into any of the foregoing.  There are no outstanding contractual obligations of any Contributed Scorpio Subsidiary to repurchase, redeem or otherwise acquire any outstanding shares of capital stock of such Contributed Scorpio Subsidiary.

 

(d)                                 Scorpio owns and holds the Contributed Shares free and clear of all Encumbrances.  No Person, other than Dorian, holds, or has any agreement, option, right or privilege capable of becoming an agreement for the purchase from Scorpio of, any of the Contributed Shares.  At the Closing, Scorpio will transfer, assign and transmit good and marketable title to and deliver the Contributed Shares to Dorian, free and clear of all Encumbrances.

 

(e)                                  None of the Contributed Scorpio Subsidiaries has equity or similar investments (or commitments to make any such investments), directly or indirectly, in or with any Person.

 

(f)                                   Other than the Scorpio Newbuilding Contracts, no Contributed Scorpio Subsidiary is a party to any Contract or has authorized, agreed or entered into any Contract.

 

(g)                                  Except as set forth in Section 4.02(g) of the Scorpio Disclosure Schedules, no Contributed Scorpio Subsidiary has any Liabilities.

 

(h)                                 No Tax Returns are, or have ever been, required to be filed by, or with respect to, any Contributed Scorpio Subsidiary.  No Contributed Scorpio Subsidiary has or will have any Tax liability for any time at or prior to the Closing.

 

(i)                                     Except as set forth in Section 4.02(i) of the Scorpio Disclosure Schedules, no power of attorney or similar authorization given by any Contributed Scorpio Subsidiary presently is in effect or outstanding.  No Contributed Scorpio Subsidiary is subject to any Law or Order or requirement of any Governmental Entity which is not of general application to Persons carrying on a business similar to such Contributed Scorpio Subsidiary’s business.

 

(j)                                    Section 4.02(j) of the Scorpio Disclosure Schedules sets forth a complete and accurate list of all bank accounts, savings deposits, money-market accounts, certificates of deposit, safety deposit boxes, and similar investment accounts with banks

 

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or other financial institutions maintained by or on behalf of the Contributed Scorpio Subsidiaries showing the depository bank or institution address, appropriate bank contact personnel, account number and names of signatories.

 

Section 4.03                            No Conflicts; Consents. The execution, delivery and performance by Scorpio of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the articles of incorporation, by-laws or other organizational documents of Scorpio or any Scorpio Subsidiary; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Scorpio or any Scorpio Subsidiary, except for such conflicts, violations or breaches that would not result in a Material Adverse Effect; (c) except as set forth in Section 4.03 of the Scorpio Disclosure Schedules, require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which Scorpio or any Scorpio Subsidiary is a party or by which Scorpio or any Scorpio Subsidiary is bound or to which any of their respective properties or assets are subject (including any Material Contract) or any Permit affecting the properties, assets or business of Scorpio or any Scorpio Subsidiary, except for such conflicts, violations, breaches, defaults or events that would not, individually or in the aggregate, result in a Scorpio Material Adverse Effect; or (d) result in the creation or imposition of any Encumbrance on any properties or assets of Scorpio or any Scorpio Subsidiary, except for such Encumbrances that would not, individually or in the aggregate, result in a Scorpio Material Adverse Effect. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Scorpio or any Scorpio Subsidiary in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby.

 

Section 4.04                            Scorpio LGC Contracts.

 

(a)                                 Set forth in Section 4.04(a) of the Scorpio Disclosure Schedules is a list of each of the following Contracts of Scorpio or Scorpio subsidiaries (collectively, the “Scorpio LGC Contracts”):

 

(i)                         each Contract relating to the acquisition, including any newbuilding contract for the construction of, any VLGC or LGC vessel, including all related specifications, change orders, addenda or other agreements;

 

(ii)                      each Contract relating to options for any newbuilding contract for the construction of any VLGC or LGC vessel;

 

(iii)                   each corporate guarantee in connection with any newbuilding contract for the construction of any VLGC or LGC vessel;

 

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(iv)                  each refund guarantee or letter of credit granted to Scorpio or any Scorpio Subsidiary in connection with any newbuilding contract for the construction of any VLGC or LGC vessel;

 

(v)                     each Contract relating to supervision of the construction of any VLGC or LGC vessel;

 

(vi)                  each Contract relating to financing of any VLGC or LGC vessel;

 

(vii)               each Contract relating to the employment, chartering or management of any VLGC or LGC vessel;

 

(viii)            each Contract relating to nominations, assignments or novations of any newbuilding contract for the construction of any VLGC or LGC vessel; and

 

(ix) any other Contract relating to any VLGC or LGC vessel.

 

(b)                             Each Scorpio LGC Contract is valid and binding on Scorpio or a Scorpio Subsidiary in accordance with its terms and is in full force and effect. None of Scorpio or a Scorpio Subsidiary, or to Scorpio’s knowledge any other party thereto, is in breach of or default under (or is alleged to be in breach of or default under) in any material respect, or has provided or received any notice of any intention to terminate, any Scorpio LGC Contract. No event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any Scorpio LGC Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder.

 

(c)                                  Scorpio has made available to Dorian true and complete copies of each Scorpio LGC Contract, including all specifications, plans, drawings, manuals, change orders, addenda, amendments and waivers thereof, and any related materials, including correspondence with HHI and DSME.

 

(d)                                 Section 4.04(d) of the Scorpio Disclosure Schedules sets forth all of the amounts paid by Scorpio, Scorpio Subsidiaries and/or any of their Affiliates as of the date hereof to shipyards pursuant to the Scorpio LGC Contracts as of October 31, 2013, and there are no amounts currently due or payable under such Scorpio LGC Contracts.

 

Section 4.05                            Investment Purpose.  Scorpio is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof. Scorpio acknowledges that the Shares are not registered under the Securities Act of 1933, as amended, or any state securities laws, and that the Shares may not be transferred or sold except pursuant to the registration provisions of the Securities Act of 1933, as amended or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable.

 

Section 4.06                            Brokers.  Except for Perella Weinberg or Scorpio Services Holding Ltd., with respect to each of which Scorpio shall pay all fees and commissions, no broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or

 

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commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Scorpio.  No Scorpio Subsidiary is or will be liable for any brokerage fees, finder’s fees, commissions or other amounts payable to Perella Weinberg or Scorpio Services Holdings Ltd.

 

Section 4.07                            Sufficiency of Funds. Scorpio has sufficient cash on hand or other sources of immediately available funds to enable it to make payment of the cash portion of the Consideration and consummate the transactions contemplated by this Agreement.

 

Section 4.08                            Legal Proceedings.  There are no Actions pending or, to Scorpio’s knowledge, threatened against Scorpio or any Scorpio Subsidiaries that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement or adversely affecting the Contributed Assets or Contributed Shares. No event has occurred or circumstances exist that may give rise or serve as a basis for any such Action.

 

Section 4.09                            NO OTHER REPRESENTATIONS OR WARRANTIES.  OTHER THAN THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS ARTICLE IV, SCORPIO MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, RELATING TO DORIAN, THE TRANSACTIONS CONTEMPLATED HEREBY, OR ANY OTHER MATTERS INCLUDING ANY REPRESENTATION OR WARRANTY AS TO FINANCIAL PROJECTIONS, AND ANY SUCH OTHER REPRESENTATION OR WARRANTY IS HEREBY DISCLAIMED.

 

ARTICLE V
  COVENANTS

 

Section 5.01                            Public Announcements. Unless otherwise required by applicable Law or stock exchange requirements (based upon the reasonable advice of counsel), no party to this Agreement shall make any further public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.

 

Section 5.02                            Further Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.  Dorian and Scorpio acknowledge that, as of the date of this Agreement, they are in the process of novating the DSME Shipbuilding Contracts from the Contributed Scorpio Subsidiaries to certain Dorian Subsidiaries.  In furtherance of the foregoing, Scorpio agrees that it will continue to use its commercially reasonable best efforts to, as promptly as practicable following the 

 

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Closing and without further consideration, effect the novation of the DSME Shipbuilding Contracts.

 

ARTICLE VI
  [RESERVED]

 

ARTICLE VII
  [RESERVED]

 

ARTICLE VIII
  INDEMNIFICATION

 

Section 8.01                            Survival. Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein shall survive the Closing and shall remain in full force and effect until the date that is eighteen (18) months from the Closing Date; provided, that the representations and warranties in Section 3.01, Section 3.02, Section 3.09, Section 3.15, Section 3.17, Section 3.18, Section 4.01, Section 4.02, Section 4.03, Section 4.04 Section 4.05, and Section 4.06 (the “Fundamental Representations”) shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus 60 days. All covenants and agreements of the parties contained herein shall survive the Closing indefinitely or for the period explicitly specified therein. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved.

 

Section 8.02                            Indemnification By Dorian. Subject to the other terms and conditions of this Article VIII, Dorian shall indemnify and defend each of Scorpio and its Affiliates and their respective Representatives (collectively, the “Scorpio Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Scorpio Indemnitees based upon, arising out of, with respect to or by reason of:

 

(a)                                 any inaccuracy in or breach of any of the representations or warranties of Dorian contained in this Agreement or in any certificate or instrument delivered by or on behalf of Dorian pursuant to this Agreement (in each case determined without regard to any qualifications therein referencing “materiality”, “Material Adverse Effect” or other words of similar import or effect) as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); or

 

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(b)                                 any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Dorian pursuant to this Agreement or in any Transaction Document.

 

Section 8.03                            Indemnification By Scorpio. Subject to the other terms and conditions of this Article VIII, Scorpio shall indemnify and defend each of Dorian and its Affiliates and their respective Representatives (collectively, the “Dorian Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Dorian Indemnitees based upon, arising out of, with respect to or by reason of:

 

(a)                                 any inaccuracy in or breach of any of the representations or warranties of Scorpio contained in this Agreement or in any certificate or instrument delivered by or on behalf of Scorpio pursuant to this Agreement (in each case determined without regard to any qualifications therein referencing “materiality”, “Material Adverse Effect” or other words of similar import or effect), as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); or

 

(b)                                 any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Scorpio pursuant to this Agreement or in any Transaction Document.

 

Section 8.04                            Indemnification Procedures. The party making a claim under this Article VIII is referred to as the “Indemnified Party”, and the party against whom such claims are asserted under this Article VIII is referred to as the “Indemnifying Party”.

 

(a)                                 Third Party Claims. If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing (a “Third Party Claim”) against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 calendar days after receipt of such notice of such Third Party Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any Third Party Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defense; provided, that if the Indemnifying Party is Dorian, such Indemnifying Party shall not have the right to defend or direct the defense of any such

 

25

 

Third Party Claim that seeks an injunction or other equitable relief against the Indemnified Party. In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject to Section 8.04(b), it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying Party’s right to control the defense thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party, provided, that if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defenses available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party; or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction for which the Indemnified Party determines counsel is required. If the Indemnifying Party elects not to compromise or defend such Third Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to Section 8.04(b), pay, compromise, defend such Third Party Claim and seek indemnification for any and all Losses based upon, arising from or relating to such Third Party Claim. Dorian and Scorpio shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making available records relating to such Third Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third Party Claim.

 

(b)                                 Settlement of Third Party Claims. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third Party Claim without the prior written consent of the Indemnified Party, except as provided in this Section 8.04(b). If a firm offer is made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Third Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within ten days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third Party Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified Party has assumed the defense pursuant to Section 8.04(a), it shall not agree to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

 

26

 

(c)                                  Direct Claims. Any Action by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a “Direct Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 days after the Indemnified Party becomes aware of such Direct Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party’s investigation by giving such information and assistance (including access to the the Indemnified Party’s premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors may reasonably request.

 

Section 8.05                            Payments.  Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this Article VIII, the Indemnifying Party shall satisfy its obligations within 15 Business Days of such final, non-appealable adjudication by wire transfer of immediately available funds. The parties hereto agree that should an Indemnifying Party not make full payment of any such obligations within such 15 Business Day period, any amount payable shall accrue interest from and including the date of agreement of the Indemnifying Party or final, non-appealable adjudication to and including the date such payment has been made at a rate per annum equal to 3.25%. Such interest shall be calculated daily on the basis of a 365 day year and the actual number of days elapsed, without compounding.

 

Section 8.06                            Limitation on Indemnification.

 

(a)                                 No Indemnified Party shall be entitled to indemnification pursuant to Section 8.02 or Section 8.03 until the aggregate amount of Losses suffered by such Indemnified Party hereunder exceeds $1,000,000 (the “Deductible”), after which Indemnified Party shall be indemnified for the entire amount of Losses in excess of the Deductible up to the amount of the Cap (as defined below).  The aggregate amount of Losses for which any Indemnified Party shall be entitled to indemnification pursuant to Section 8.02 or Section 8.03 shall be $10,000,000 (the “Cap”). Notwithstanding anything to the contrary contained herein, neither the Deductible nor the Cap shall apply to claims made with respect to any Fundamental Representation.

 

(b)                                 Notwithstanding anything to the contrary set forth in this Agreement, the parties shall take commercially reasonable steps (to the extent then available or possible) to mitigate all Losses (including by pursuing available insurance and third party claims) upon and after becoming aware of any event that could reasonably be expected to give

 

27

 

rise to such Losses (provided that the costs of such mitigation shall be indemnifiable Losses hereunder).

 

Section 8.07                            Losses Net of Insurance; Damages; Mitigation.  The amount of any Loss for which indemnification is provided under Section 8.2 or Section 8.3 shall be net of (a) any insurance proceeds (net of any costs of investigation of the underlying claim and of collection) received as an offset against such Loss (each such source of recovery, a “Collateral Source”) and (b) an amount equal to the present value of the tax benefit, if any, attributable to such Loss.  Notwithstanding anything to the contrary contained in Section 8.2 or Section 8.3, no indemnification shall be provided under the Agreement with respect to any Losses that are incidental damages, consequential damages, special damages, damages arising out of business interruption or lost profits, damages arising through the application of any multiplier to any Losses or punitive damages; provided that Losses of any Indemnified Party will include any of such Losses to the extent that they are actually adjudicated as due and actually paid by such Indemnified Party to a third party in connection with an indemnified third party claim.

 

Section 8.08                            Effect of Investigation. The right to indemnification or other remedy based on the representations, warranties, covenants and agreements contained herein will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant or agreement.

 

Section 8.09                            Exclusive Remedies. The parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud, criminal activity or willful misconduct on the part of a party hereto in connection with the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this Article VIII. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates and each of their respective Representatives arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this Article VIII. Nothing in this Section 8.09 shall limit any Person’s right to seek and obtain any equitable relief to which any Person shall be entitled or to seek any remedy on account of any party’s fraudulent, criminal or intentional misconduct.

 

28

 

 

ARTICLE IX
  [RESERVED]

 

ARTICLE X
  MISCELLANEOUS

 

Section 10.01                     Expenses. Except as otherwise expressly provided herein, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

 

Section 10.02 Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 10.02):

 

	
If   to Dorian:
    	
c/o   Dorian LPG (USA) LLC

27   Signal Road

Stamford,   CT 06878

Tel:   (203) 978-1234

Fax:   (203) 359-8159

Email:   john.hadjipateras@dorianlpg.com

Attention:   President

 

with   a copy (which shall not constitute notice) to:

 

Seward &   Kissel LLP

Attention:   Gary J. Wolfe, Esq.

One   Battery Park Plaza

New   York, NY 10004

Facsimile:   (212) 480-8421

E-mail:   wolfe@sewkis.com
    
	
 
    	
 
    
	
If   to Scorpio:
    	
Scorpio   Tankers Inc.

9   Boulevard Charles III

Monaco,   98000

Facsimile:   +377-97-77-83-46

E-mail:   legal@scorpiogroup.net
    

 

29

 

	
 
    	
Attention:   General Counsel

 

with   a copy (which shall not constitute notice) to:

 

Seward &   Kissel LLP

Attention:   Edward S. Horton, Esq.

One   Battery Park Plaza

New   York, NY 10004

Facsimile:   (212) 480-8421

E-mail:   horton@sewkis.com
    

 

Section 10.03 Interpretation. For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

Section 10.04 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Section 10.05 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

Section 10.06 Entire Agreement. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body 

 

30

 

of this Agreement and those in the other Transaction Documents, the Exhibits and Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

 

Section 10.07 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed.  No assignment shall relieve the assigning party of any of its obligations hereunder.

 

Section 10.08 No Third-party Beneficiaries. Except as provided in Article VIII, this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section 10.09 Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 10.10 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)                                 This Agreement shall be governed by and construed in accordance with the Laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction).

 

(b)                                 ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY SHALL BE BROUGHT IN THE FEDERAL COURTS OF THE UNITED STATES LOCATED IN THE CITY AND COUNTY OF NEW YORK, BOROUGH OF MANHATTAN, UNLESS ANY SUCH FEDERAL COURT DETERMINES THAT IT LACKS JURISDICTION, IN WHICH CASE SUCH PROCEEDING SHALL BE INSTITUTED IN THE COURTS OF THE STATE OF NEW YORK, IN EACH CASE LOCATED IN THE CITY AND COUNTY OF NEW YORK, BOROUGH OF MANHATTAN.  AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION 

 

31

 

OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c)                                  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.10(c).

 

Section 10.11 Specific Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

 

Section 10.12 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

32

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

 

	
 
    	
DORIAN   LPG LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alexander Ciaputa 
    
	
 
    	
Name:
    	
Alexander   Ciaputa 
    
	
 
    	
Title:
    	
Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SCORPIO   TANKERS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian M. Lee 
    
	
 
    	
Name:
    	
Brian   M. Lee 
    
	
 
    	
Title:
    	
Chief   Financial Officer
    

 

33

 

Exhibit 2.02

 

Contributed Assets

 

A.                                    Dorian Shanghai LPG Transport LLC (Hyundai Hull S749)

 

Shipbuilding Contract, dated July 22, 2013, between Hyundai Samho Heavy Industries Co., Ltd. (“Hyundai”) and STI Shanghai Shipping Company Limited (then known as STI Foch Shipping Company Limited) in respect of Hyundai Hull S749

 

(a)  Amendment Agreement No. 1, dated September 3, 2013, reflecting change in buyers name to STI Shanghai Shipping Company Limited.

 

Letter of Guarantee issued by Hana Bank (including original LG)

 

Performance Guarantee, dated July 22, 2013, issued by Scorpio Tankers Inc

 

B.                                    Dorian Houston LPG Transport LLC (Hyundai Hull S750)

 

Shipbuilding Contract, dated July 22, 2013, between Hyundai and STI Houston Shipping Company Limited (then known as STI Kensington Shipping Company Limited) in respect of in respect of Hull S750

 

(a)  Amendment Agreement No. 1, dated September 3, 2013, reflecting change in buyers name to STI Houston Shipping Company Limited.

 

Letter of Guarantee issued by Hana Bank (including original LG)

 

Performance Guarantee, dated July 22, 2013, issued by Scorpio Tankers Inc

 

C.                                    Dorian Amsterdam LPG Transport LLC (Hyundai Hull S751)

 

Shipbuilding Contract, dated July 22, 2013, between Hyundai and STI Amsterdam Shipping Company Limited (then known as STI Marylebone Shipping Company Limited) in respect of in respect of Hull S751

 

(a)  Amendment Agreement No. 1, dated September 3, 2013, reflecting change in buyers name to STI Amsterdam Shipping Company Limited.

 

Letter of Guarantee issued by Hana Bank (including original LG)

 

Performance Guarantee, dated July 22, 2013, issued by Scorpio Tankers Inc

 

D.                                    Dorian Barcelona LPG Transport LLC (Hyundai Hull S752)

 

Shipbuilding Contract, dated July 22, 2013, between Hyundai and STI Barcelona Shipping Company Limited (then known as STI Montaigne Shipping Company Limited) in respect of in respect of Hull S752

 

(a)  Amendment Agreement No. 1, dated September 3, 2013, reflecting change in buyers name to STI Amsterdam Shipping Company Limited.

 

Letter of Guarantee issued by Hana Bank and amendment (including original 

 

 

LG)

 

Performance Guarantee, dated July 22, 2013, issued by Scorpio Tankers Inc

 

E.                                    Dorian Sao Paulo LPG Transport LLC (Hyundai Hull S753)

 

Shipbuilding Contract, dated October 18, 2013, between Hyundai and STI Sao Paulo Shipping Company Limited in respect of Hull S753

 

(a)  Addendum No. 1 dated October 18, 2013

 

(b)  Amendment Agreement No. 1, dated October 31, 2013

 

Letter of Guarantee issued by Korea Exchange Bank and amendment

 

Performance Guarantee, dated October 18, 2013, issued by Scorpio Tankers Inc

 

F.                                     Dorian Cape Town LPG Transport LLC (Hyundai Hull S754)

 

Shipbuilding Contract, dated October 18, 2013, between Hyundai and STI Cape Town Shipping Company Limited in respect of Hull S754

 

(a)  Addendum No. 1 dated October 18, 2013

 

(b)  Amendment Agreement No. 1, dated October 31, 2013

 

Letter of Guarantee issued by Korea Exchange Bank

 

Performance Guarantee, dated October 18, 2013, issued by Scorpio Tankers Inc

 

G.                                   Dorian Ulsan LPG Transport LLC (Hyundai Hull S755)

 

Shipbuilding Contract, dated July 25, 2013, between Hyundai and STI Ulsan Shipping Company Limited in respect of Hull S755

 

Letter of Guarantee issued by Hana Bank (including original LG)

 

Performance Guarantee, dated July 25, 2013, issued by Scorpio Tankers Inc

 

H.                                   Dorian Monaco LPG Transport LLC (Hyundai Hull S756)

 

Shipbuilding Contract, dated July 25, 2013, between Hyundai and STI Monaco Shipping Company Limited in respect of Hull S756

 

Letter of Guarantee issued by Hana Bank and amendment (including original LG)

 

Performance Guarantee, dated July 25, 2013, issued by Scorpio Tankers Inc

 

I.                                        Option Agreements

 

Option Agreement Extension Letter from Hyundai Samho Heavy Industries Co., Ltd. to Scorpio Tankers Inc., dated November 6, 2013.

 

Option Agreement, dated July 22, 2013, between Scorpio Tankers Inc. and Hyundai for two 84,000 CBM Class LPG Carriers.

 

2

 

Option Agreement, dated July 25, 2013, between Scorpio Tankers Inc. and Hyundai for two 84,000 CBM Class LPG Carriers.

 

3

 

Exhibit 2.03(a)

 

Dorian Wire Instructions

 

	
 
    	
THE   ROYAL BANK OF SCOTLAND PLC.
    
	
 
    	
3RD   FLOOR
    
	
 
    	
ALDGATE   UNION
    
	
 
    	
10   WHITECHAPPEL HIGH STREET
    
	
 
    	
LONDON   E18 DX
    
	
 
    	
UNITED   KINGDOM
    
	
 
    	
SWIFT:   RBOSGB2LXXX
    
	
 
    	
 
    
	
 
    	
FOR   CREDIT TO:
    
	
 
    	
DORIAN   LPG LTD
    
	
 
    	
ACCOUNT   NO: DORILPG-USDC
    
	
 
    	
IBAN   GB42RBOS16630000671669
    

 

 

Exhibit 2.03(b)

 

Scorpio VPS Account

 

11400.0083674

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