Document:

ex4-2_2.htm

Exhibit 4.2.2

 

 

 

 

DHT HOLDINGS, INC.

and

U.S. Bank National Association,

as Trustee, Paying Agent, Registrar and Conversion Agent

__________________________

FIRST SUPPLEMENTAL INDENTURE

Dated as of September 15, 2014

to the Indenture dated as of September 15, 2014

Creating the series of notes designated

4.5% Convertible Senior Notes due 2019

 

 

  

  

  

 

 

Table of Contents

 

 

	
Page

	 
	
ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

	  	  	  
	
Section 1.01

	
Definitions

	
1

	
Section 1.02

	
Other Definitions

	
6

	  	  	  
	
ARTICLE 2

THE SECURITIES

	  	  	  
	
Section 2.01

	
Form and Dating

	
7

	
Section 2.02

	
Execution and Authorization

	
8

	
Section 2.03

	
Registrar, Paying Agent, Conversion Agent and Depository

	
8

	
Section 2.04

	
Transfer and Exchange

	
8

	
Section 2.05

	
Outstanding Securities

	
20

	
Section 2.06

	
Cancellation

	
20

	  	  	  
	
ARTICLE 3

REDEMPTION

	  	  	  
	
Section 3.01

	
Right to Redeem

	
20

	
Section 3.02

	
Notices to Paying Agent

	
20

	
Section 3.03

	
Selection of Securities to Be Redeemed

	
21

	
Section 3.04

	
Notice of Redemption

	
21

	
Section 3.05

	
Effect of Redemption Notice

	
22

	
Section 3.06

	
Deposit of Redemption Price

	
22

	
Section 3.07

	
Securities Redeemed in Part

	
22

	
Section 3.08

	
Effect of Redemptions in Part

	
22

	
Section 3.09

	
Conditions to Redemption

	
22

	 	 	 
	
ARTICLE 4

PURCHASE OF SECURITIES UPON A FUNDAMENTAL CHANGE

	  	  	  
	
Section 4.01

	
Purchase of Securities at Option of the Holder Upon Fundamental Change

	
22

	
Section 4.02

	
Effect of Fundamental Change Purchase Notice

	
26

	
Section 4.03

	
Deposit of Fundamental Change Purchase Price

	
26

	
Section 4.04

	
Securities Purchased in Part

	
27

	
Section 4.05

	
Compliance with Securities Laws Upon Purchase of Securities

	
27

	  	  	  
	
ARTICLE 5

PAYMENT OF INTEREST AND MAKE WHOLE ADJUSTMENT EVENTS

	  	  	  
	
Section 5.01

	
Interest Payments

	
27

	
Section 5.02

	
Increased Conversion Rate Applicable to Certain Securities Surrendered in Connection with Make Whole Adjustment Events

	
28

 

 

  

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Table of Contents

(continued)

 

 

	 	 	Page
	 	 	 
	 	 	 
	
Section 5.03

	
Adjustments Relating to Make Whole Adjustment Event

	
29

	  	  	  
	
ARTICLE 6

CONVERSION

	  	  	  
	
Section 6.01

	
Conversion Privilege

	
30

	
Section 6.02

	
Conversion Procedure

	
30

	
Section 6.03

	
Fractional Shares

	
31

	
Section 6.04

	
Taxes on Conversion

	
31

	
Section 6.05

	
Settlement Upon Conversion

	
31

	
Section 6.06

	
Adjustment of Conversion Price

	
32

	
Section 6.07

	
No Adjustment

	
37

	
Section 6.08

	
Adjustment for Tax Purposes

	
38

	
Section 6.09

	
Notice of Conversion and Notice of Adjustment

	
38

	
Section 6.10

	
Notice of Certain Transactions

	
38

	
Section 6.11

	
Stockholder Rights Plans

	
39

	
Section 6.12

	
Effect of Reclassification, Consolidation, Merger or Sale on Conversion Privilege

	
39

	
Section 6.13

	
Trustee’s Disclaimer

	
40

	
Section 6.14

	
Voluntary Reduction

	
41

	  	  	  
	
ARTICLE 7

ADDITIONAL COVENANTS

	  	  	  
	
Section 7.01

	
Payment of Additional Tax Amounts

	
41

	
Section 7.02

	
Limitation on Incurrence of Indebtedness

	
42

	  	  	  
	
ARTICLE 8

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

	  	  	  
	
Section 8.01

	
Issuer May Consolidate, etc., on Certain Terms

	
43

	  	  	  
	
ARTICLE 9

DEFAULT AND REMEDIES

	  	  	  
	
Section 9.01

	
Limitations on Suits

	
43

	
Section 9.02

	
Unconditional Right of Holders to Convert

	
44

	
Section 9.03

	
Waiver of Default and Events of Default

	
44

	  	  	  
	
ARTICLE 10

SATISFACTION AND DISCHARGE

	  	  	  
	
Section 10.01

	
Satisfaction and Discharge

	
44

	
Section 10.02

	
Application of Trust Money

	
45

	
Section 10.03

	
Repayment to Company

	
45

	
Section 10.04

	
Reinstatement

	
45

	  	  	  

 

 

  

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Table of Contents

(continued)

 

 

	Page
	 
	 
	
ARTICLE 11

MISCELLANEOUS PROVISIONS

	  	  	  
	
Section 11.01

	
Scope of Supplemental Indenture

	
45

	
Section 11.02

	
Adoption, Ratification and Confirmation

	
45

	
Section 11.03

	
New York Law to Govern

	
46

	
Section 11.04

	
Notices

	
46

	
Section 11.05

	
Officers’ Certificates

	
46

	
Section 11.06

	
Counterparts

	
46

	  	  	  
	
ARTICLE 12

SUPPLEMENTAL INDENTURES

	  	  	  
	
Section 12.01

	
Without Consent of Holders

	
46

	  	  	  
	
ARTICLE 13

SINKING FUND

	  	  	  
	
Section 13.01

	
Sinking Fund

	
46

	  	  	  
	
EXHIBIT A

	  	
FORM OF NOTE

	  	  	  
	
EXHIBIT B

	  	
FORM OF CERTIFICATE OF TRANSFER

	  	  	  
	
EXHIBIT C

	  	
FORM OF CERTIFICATE OF EXCHANGE

	  	  	  
	
EXHIBIT D

	  	
FORM OF CERTIFICATE FROM ACQUIRING IAI

  

iii

  

 

FIRST SUPPLEMENTAL INDENTURE, dated as of September 15, 2014, among DHT Holdings, Inc., a company organized under the laws of the Marshall Islands (the “Company”), U.S. Bank National Association, as trustee (the “Trustee”), Paying Agent, Registrar and Conversion Agent.

W I T N E S S E T H:

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of September 15, 2014 (the “Base Indenture”), providing for the issuance from time to time of one or more Series of Securities;

WHEREAS, Sections 2.01 and 2.02 of the Base Indenture provide that the Company and the Trustee may from time to time enter into one or more indentures supplemental thereto to establish the form or terms of a new Series of Securities;

WHEREAS, the Company, pursuant to the foregoing authority, proposes in and by this First Supplemental Indenture (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) to supplement the Base Indenture insofar as it will apply only to the 4.5% Convertible Senior Notes due 2019 (the “Securities”, each a “Security”) issued hereunder; and

WHEREAS, all things necessary have been done to make the Securities, when executed by the Company and authenticated and delivered hereunder and duly issued by the Company, the valid obligations of the Company, and to make this Supplemental Indenture a valid agreement of the Company, in accordance with their and its terms;

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

For and in consideration of the premises and the purchases of the Securities by the holders thereof, the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Securities as follows:

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01 Definitions.

For all purposes of the Indenture and the Securities:

(a) each term that is used but not defined in this Supplemental Indenture shall have the meaning provided in the Base Indenture;

(b) each term that is defined in both this Supplemental Indenture and the Base Indenture shall have the meaning provided in this Supplemental Indenture unless otherwise specified herein;

(c) the below terms are defined as follows:

“144A Global Security” means a global Security substantially in the form of Exhibit A bearing the Global Security Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depository or its nominee, that shall be issued in a denomination equal to the outstanding original principal amount of the Securities sold in reliance on Rule 144A.

 

 

  

1

  

 

 “Additional Tax Amounts” has the meaning specified in Section 7.01. Additional Tax Amounts, for all purposes of this Indenture, shall constitute and be deemed to be part of the principal, interest, or other payment to which they relate.

“Agent” means any Paying Agent, Registrar or Conversion Agent.

“Applicable Procedures” means, with respect to any payment, tender, redemption, transfer or exchange of or for beneficial interests in any Global Security, the rules and procedures of the Depository, Euroclear and Clearstream that apply to such payment, tender, redemption, transfer or exchange.

“Base Indenture” shall have the meaning provided in the first recital.

“Cash” or “cash” means such coin or currency of the United States as at any time of payment is legal tender for the payment of public and private debts.

“Clearstream” means Clearstream Banking S.A. and any successor thereto.

“Closing Sale Price” of the Common Stock means, as of any date of determination, the closing per share sale price (or, if no such closing sale price is reported on such day, the average of the bid and asked prices or, if more than one in either case, the average of the average bid and the average asked prices) at 4:00 p.m., New York time, on such date as reported in composite transactions for the principal U.S. securities exchange on which the Common Stock is traded or, if the Common Stock is not listed on a U.S. national or regional securities exchange, as reported by Pink OTC Markets Inc.

“Common Stock” means the common stock of the Company, $.01 par value, as it exists on the date of this Indenture and any shares of any class or classes of capital stock of the Company resulting from any reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company and which are not subject to redemption by the Company; provided, however, that, if at any time there shall be more than one such resulting class, the shares of each such class then so issuable on conversion of Securities shall be substantially in the proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications.

“Company” has the meaning provided in the preamble.

“Conversion Rate” means, as of any date, an amount equal to $1,000 divided by the then applicable Conversion Price on such date. As of the date hereof and subject to adjustment pursuant to Section 6.06, the Conversion Rate with respect to the Securities is 123.0769 shares of Common Stock for each $1,000 principal amount of Securities.

“Custodian” means the Trustee as custodian with respect to the Global Securities or any successor entity thereto.

“DTC” means The Depository Trust Company.

“Definitive Security” means a certificated Security registered in the name of the Holder thereof and issued in accordance with Section 2.04, substantially in the form of Exhibit A, except that such Security shall not bear the Global Security Legend and shall not have the “Schedule of Exchanges of Interests in the Global Security” attached thereto.

“Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear system, and any successor thereto.

 

 

  

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“Event of Default” with respect to the Securities shall have the meaning assigned to such term by Section 6.01 of the Base Indenture and shall in addition thereto include each of the following events (provided that the provisions set forth in clauses (i), (ii) and (iv) below replace the corresponding provisions set forth in Section 6.01(a), (b) and (c) of the Base Indenture to the extent inconsistent with such clauses):

	 	
(i)

 

	
the Company defaults in the payment of any principal of any Security at Maturity (including, following a Fundamental Change), including any Additional Tax Amounts (if any) thereon;

 

	 	
(ii)

 

	
the Company defaults in the payment of any interest on any Security, including any Additional Tax Amounts (if any) thereon, when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent that is not an affiliate of the Company prior to the expiration of such period of 30 days);

 

	 	
(iii)

 

	
the Company fails to pay the cash and deliver the shares of Common Stock, if any, representing the Conversion Obligation (including any Additional Shares and any Additional Tax Amounts (if any) thereon) upon conversion of any Security within the time period required by the provisions of this Indenture;

 

	 	
(iv)

 

	
the Company fails to perform or comply with any of its other covenants or agreements contained in the Securities or in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is specifically dealt with in clauses (i), (ii) or (iii) of this definition) and the default continues for 60 days after notice is given as specified below;

 

	 	
(v)

 

	
the Company defaults in the payment of the purchase price of any Security when the same becomes due and payable, including any Additional Tax Amounts (if any) thereon; and

 

	 	
(vi)

 

	
the Company fails to provide a Fundamental Change Purchase Notice when required by Section 4.01;

 

provided, that a default under clause (iv) above is not an Event of Default until the Trustee (acting at the written direction of the Holders of at least 25% in aggregate principal amount of the Securities then outstanding) notifies the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding notify the Company and the Trustee, in writing of the default, and the Company does not cure the default within 60 days after receipt of such notice.

“Ex-Dividend Date” means with respect to any issuance, dividend or distribution, the first date on which the shares of Common Stock trade, regular way, on the relevant exchange or in the relevant market for which the sale price was obtained without the right to receive the issuance, dividend or distribution in question.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.

“Final Maturity Date” means October 1, 2019.

“Global Security Legend” means the legend set forth in Section 2.04(f)(ii), which is required to be placed on all Global Securities issued under the Indenture.

 

 

  

3

  

 

“IAI Global Security” means a global Security substantially in the form of Exhibit A hereto bearing the Global Security Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depository or its nominee that shall initially be issued in a denomination equal to the outstanding principal amount of the Securities.

“IAI Securities” means any Securities issued to IAIs.

“IAIs” means institutional “accredited investors” (as defined in Rules 501(a)(1), (2), (3) and (7) under the Securities Act) who are not also QIBs.

“Indenture” has the meaning provided in the third recital.

“Indirect Participant” means a Person who holds a beneficial interest in a Global Security through a Participant.

“Issue Date” means September 15, 2014.

“Legended Regulation S Global Security” means a global Security in the form of Exhibit A bearing the Global Security Legend, the Private Placement Legend and the Regulation S Global Security Legend and deposited with or on behalf of and registered in the name of the Depository or its nominee, issued in a denomination equal to the outstanding principal amount at maturity of the Securities initially sold in reliance on Rule 903 of Regulation S.

“Market Disruption Event” means (1) a failure by the primary exchange or quotation system on which the Common Stock trades or is quoted to open for trading during its regular trading session or (2) the occurrence or existence for more than one half hour period in the aggregate on any Scheduled Trading Day for the Common Stock of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the NYSE or otherwise) in the Common Stock or in any options, contracts or future contracts relating to the Common Stock, and such suspension or limitation occurs or exists at any time before 1:00 p.m., New York City time, on such day.

“Non-U.S. Person” means a Person who is not a U.S. Person.

“NYSE” means the New York Stock Exchange.

“Participant” means, with respect to the Depository, Euroclear or Clearstream, a Person who has an account with the Depository, Euroclear or Clearstream, respectively (and with respect to DTC, shall include Euroclear and Clearstream).

“Private Placement Legend” means the legend set forth in Section 2.07(f)(i) to be placed on all Securities issued under the Indenture except where otherwise permitted by the provisions of the Indenture.

“QIB” means a “qualified institutional buyer” as defined in Rule 144A.

“Redemption Date” means the date specified for redemption of the Securities in accordance with the terms of the Securities and Article 3.

“Regulation D” means Regulation D promulgated under the Securities Act.

“Regulation S” means Regulation S promulgated under the Securities Act.

 

 

  

4

  

 

“Regulation S Global Security” means a Legended Regulation S Global Security or an Unlegended Regulation S Global Security, as appropriate.

“Regulation S Global Security Legend” means the legend set forth in Section 2.04(g), which is required to be placed on all Regulation S Global Securities issued under the Indenture.

“Resale Restriction Termination Date” is the date that is the later of (1) the date that is one year after the last date of original issuance of the Securities, or such shorter period of time as permitted by Rule 144 under the Securities Act or any successor provision thereto, and (2) such later date, if any, as may be required by applicable law (unless such Securities or such Common Stock have been transferred pursuant to a registration statement that has become or been declared effective under the Securities Act and that continues to be effective at the time of such transfer, or sold pursuant to the exemption from registration provided by Rule 144 or any similar provision then in force under the Securities Act, or unless otherwise agreed by the Company in writing, with notice thereof to the Trustee, or, in the case of Common Stock, such Common Stock has been issued upon conversion of Securities that have been transferred pursuant to a registration statement that has become or been declared effective under the Securities Act and that continues to be effective at the time of such transfer).

“Restricted Definitive Security” means a Definitive Security bearing the Private Placement Legend.

“Restricted Global Security” means a Global Security bearing a Private Placement Legend.

“Restricted Period” means the 40-day distribution compliance period as defined in Regulation S.

“Rule 144” means Rule 144 promulgated under the Securities Act, as amended.

“Rule 144A” means Rule 144A promulgated under the Securities Act, as amended.

“Rule 903” means Rule 903 promulgated under the Securities Act, as amended.

“Rule 904” means Rule 904 promulgated under the Securities Act, as amended.

“Scheduled Trading Day” means any day that is scheduled to be a Trading Day.

 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.

“Securities Purchase Agreement” means the Securities Purchase Agreement, dated as of September 10, 2014, by and among the Company and the investors named therein.

“Settlement Date” means the third Trading Day immediately following the Conversion Date, unless otherwise specified herein.

“Shelf Registration Statement” has the meaning set forth for such term in the Securities Purchase Agreement.

“Trading Day” means any day during which (i) there is no Market Disruption Event and (ii) the NYSE, or if the Common Stock is not listed on the NYSE, the principal other U.S. national or regional securities exchange on which the Common Stock is then listed is open for trading or, if the Common Stock is not so listed, any Business Day. A “Trading Day” only includes those days that have a scheduled closing time of 4:00 p.m., New York City time, or the then standard closing time for regular trading on the relevant exchange or trading system.

 

 

  

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“Trading Price” means, on any date of determination with respect to any Security, the average of the secondary bid quotations per Security obtained by the Conversion Agent for $5,000,000 principal amount of Securities at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers selected by the Company; provided that, if at least three such bids cannot reasonably be obtained, but two such bids can reasonably be obtained, then the average of these two bids shall be used; provided, further, that, if at least two such bids cannot reasonably be obtained, but one such bid can reasonably be obtained, this one bid shall be used. If, on any date of determination, the Conversion Agent cannot reasonably obtain at least one bid for $5,000,000 principal amount of the Securities from an independent nationally recognized securities dealer, then the Trading Price of such Securities on such determination date will be deemed to be less than 98% of the Closing Sale Price of the Common Stock on such date multiplied by the then current Conversion Rate.

“Unlegended Regulation S Global Security” means a permanent Global Security (other than a Legended Regulation S Global Security) in the form of Exhibit A bearing the Global Security Legend, deposited with or on behalf of and registered in the name of the Depository or its nominee and issued upon expiration of the Restricted Period.

 

“Unrestricted Definitive Security” means one or more Definitive Securities that do not bear and are not required to bear the Private Placement Legend.

“Unrestricted Global Security” means a permanent Global Security substantially in the form of Exhibit A that bears the Global Security Legend, that has the “Schedule of Exchanges of Interests in the Global Security” attached thereto, that is deposited with or on behalf of and registered in the name of the Depository, representing all or a portion of the Securities, and that does not bear the Private Placement Legend.

“U.S. Person” means a U.S. person as defined in Rule 902(o) under the Securities Act.

 “Voting Stock” of a Person means any class or classes of Capital Stock or other interests (including partnership interests) of such Person then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof.

Section 1.02 Other Definitions.

	
Term

	
Defined in Section

	
“Additional Shares”

	
5.02(a)

	
“Approved Brokers”

	
7.02

	
“Change in Control”

	
4.01(a)

	
“Conversion Agent”

	
2.03

	
“Conversion Date”

	
6.02

	
“Conversion Notice”

	
6.02

	
“Conversion Obligation”

	
6.02

	
“Conversion Price”

	
6.06

	
“Effective Date”

	
5.02(a)

	
“Expiration Date”

	
6.06(e)

	
“Expiration Time”

	
6.06(e)

	
“Fundamental Change”

	
4.01(a)

 

 

  

6

  

 

 

	
“Fundamental Change Purchase Date”

	
4.01(a)

	
“Fundamental Change Purchase Notice”

	
4.01(c)

	
“Fundamental Change Purchase Price”

	
4.01(a)

	
“IFRS”

	
7.02

	
“incur”

	
7.02

	
“Indebtedness”

	
7.02

	
“Interest Payment Date”

	
5.01(a)

	
“Make Whole Adjustment Event”

	
5.02(a)

	
“Make Whole Adjustment Event Period”

	
5.02(a)

	
“Merger Event”

	
6.12

	
“offshore transaction”

	
2.04(c)

	
“Reference Property”

	
6.12(a)

	
“Record Date”

	
5.01(a)

	
“Redemption Notice”

	
3.04

	
“Redemption Price”

	
3.01

	
“relevant jurisdiction”

	
7.01(a)

	
“Spin-Off”

	
6.06(c)

	
“Stock Price”

	
5.02(a)

	
“successor person”

	
8.01

	
“Termination of Trading”

	
4.01(a)

	
“Total Debt”

	
7.02

	
“Unissued Shares”

	
4.01(a)

	
“Valuation Period”

	
6.06(c)

	
“Value Adjusted Equity”

	
7.02

	
“Value Adjusted Equity Ratio”

	
7.02

	
“Value Adjusted Total Assets”

	
7.02

	
“Weighted Average Consideration”

	
6.12(c)

ARTICLE 2

THE SECURITIES

Section 2.01 Form and Dating.

(a)           The Securities and the corresponding Trustee’s certificate of authentication shall be substantially in the respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of this Indenture. The Securities are initially being offered and sold by the Company to QIBs and/or IAIs pursuant to the Securities Purchase Agreement and in reliance on Regulation D. The Securities shall be initially issued in the form of an IAI Global Security and such Securities may thereafter be transferred to, among others, QIBs, purchasers in reliance on Regulation S and, except as set forth below, to IAIs in accordance with Rule 501. The Securities shall be issued without interest coupons, in minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof and dated the date of their authentication.

(b)           Global Securities. Securities issued in global form shall be substantially in the form of Exhibit A (and shall include the Global Securities Legend thereon and the “Schedule of Exchanges of Interests in the Global Security” attached thereto). Securities issued in definitive form shall be substantially in the form of Exhibit A (but without the Global Securities Legend thereon and without the “Schedule of Exchanges of Interests in the Global Security” attached thereto). Each Global Security shall represent such of the outstanding Securities as shall be specified therein and each shall provide that it represents the aggregate principal amount of outstanding Securities from time to time endorsed thereon and that the aggregate principal amount of outstanding Securities represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Security on the “Schedule of Exchanges of Interests in the Global Note” to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Securities represented thereby shall be made by the Trustee or, if the Custodian and the Trustee are not the same Person, by the Custodian at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.04 hereof.

 

 

  

7

  

 

Section 2.02 Execution and Authorization. The Trustee shall authenticate and make available for delivery Securities for original issue in the aggregate principal amount of $150,000,000 of Securities upon receipt of a written order or orders of the Company signed by two Officers of the Company Order. Each Company Order shall specify the amount of Securities to be authenticated and the date on which each original issue of Securities is to be authenticated.

Section 2.03 Registrar, Paying Agent, Conversion Agent and Depository.

The Company will at all times maintain a Registrar, Paying Agent and agency where Securities may be presented for conversion (a “Conversion Agent”) in the Borough of Manhattan, The City of New York.

The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Conversion Agent. If at any time the Company shall fail to maintain any such required Conversion Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations and surrenders may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations and surrenders. The Company hereby appoints U.S. Bank National Association as the initial Conversion Agent for the Securities. U.S. Bank National Association shall be entitled to all of the rights, protections, exculpations and indemnities afforded to the Trustee in connection with its role as Conversion Agent.

The Company may also from time to time designate one or more additional conversion agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Conversion Agent. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any Conversion Agent. The term “Conversion Agent” includes any additional conversion agent.

The Company initially appoints The Depository Trust Company (“DTC”) to act as Depository with respect to the Global Securities.

Section 2.04 Transfer and Exchange.

This Section 2.04 supplements the Base Indenture and, to the extent inconsistent with the provisions of Section 2.07 and 2.14 of the Base Indenture, replaces the provisions of such sections of the Base Indenture.

(a)           Transfer and Exchange of Global Securities. A Global Security may not be transferred as a whole except by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or to another nominee of the Depository, or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository. All Global Securities shall be exchanged by the Company for Definitive Securities if (i) the Depository (A) notifies the Company that it is unwilling or unable to continue to act as Depository for the Global Securities or (B) has ceased to be a clearing agency registered under the Exchange Act; and in either case, the Company fails to appoint a successor Depository within 90 days after becoming aware of such condition; (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of Definitive Securities in exchange for Global Securities (in whole but not in part); provided that in no event shall the Legended Regulation S Global Security be exchanged by the Company for Definitive Securities prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificates required pursuant to Regulation S under the Securities Act; or (iii) there shall have occurred and be continuing a Default or Event of Default with respect to the Securities and the Depository requests Definitive Securities. Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, Definitive Securities shall be issued in such names as the Depository shall instruct the Trustee. Global Securities also may be exchanged or replaced, in whole or in part, as provided in Sections 2.08 and 2.11 of the Base Indenture. Except as otherwise provided above in this Section 2.04(a), every Security authenticated and delivered in exchange for, or in lieu of, a Global Security or any portion thereof, pursuant to this Section 2.04 or pursuant to Section 2.08 or 2.11 of the Base Indenture, shall be authenticated and delivered in the form of, and shall be, a Global Security. A Global Security may not be exchanged for another Security other than as provided in this Section 2.04(a); however, beneficial interests in a Global Security may be transferred and exchanged as provided in Section 2.04(b), (c) or (d) hereof.

 

 

  

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(b)           Transfer and Exchange of Beneficial Interests in the Global Securities. The transfer and exchange of beneficial interests in the Global Securities shall be effected through the Depository, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Securities shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities Act. Transfers of beneficial interests in the Global Securities also shall require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

(i)           Transfer of Beneficial Interests in the Same Global Security. Beneficial interests in any Restricted Global Security may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Security in accordance with the transfer restrictions set forth in the Private Placement Legend; provided, however, that prior to the expiration of the Restricted Period, transfers of beneficial interests in a Legended Regulation S Global Security may not be made to a U.S. Person or for the account or benefit of a U.S. Person. Beneficial interests in any Unrestricted Global Security may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Security. No written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.04(b)(i).

(ii)           All Other Transfers and Exchanges of Beneficial Interests in Global Securities. In connection with all transfers and exchanges of beneficial interests that are not subject to Section 2.04(b)(i) above, the transferor of such beneficial interest must deliver to the Registrar either (A) (1) a written order from a Participant or an Indirect Participant given to the Depository in accordance with the Applicable Procedures directing the Depository to credit or cause to be credited a beneficial interest in another Global Security in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase or (B) (1) if Definitive Securities are at such time permitted to be issued pursuant to the Indenture, a written order from a Participant or an Indirect Participant given to the Depository in accordance with the Applicable Procedures directing the Depository to cause to be issued a Definitive Security in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the Depository to the Registrar containing information regarding the Person in whose name such Definitive Security shall be registered to effect the transfer or exchange referred to in (1) above; provided that in no event shall Definitive Securities be issued upon the transfer or exchange of beneficial interests in the Legended Regulation S Global Security prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificates or other satisfactory evidence pursuant to Rule 903. Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Securities contained in this Indenture and the Securities or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount at maturity of the relevant Global Securities pursuant to Section 2.04(h).

 

 

  

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(iii)           Transfer of Beneficial Interests to Another Restricted Global Security. A beneficial interest in any Restricted Global Security may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Security if the transfer complies with the requirements of Section 2.04(b)(ii) above and the Registrar receives the following:

(A)           if the transferee will take delivery in the form of a beneficial interest in a 144A Global Security, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof;

(B)           if the transferee will take delivery in the form of a beneficial interest in a Legended Regulation S Global Security, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; or

(C)           if the transferee will take delivery in the form of a beneficial interest in the IAI Global Security, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certification in item (3) thereof, if applicable, and the transferee must deliver to the Registrar a signed letter substantially in the form of Exhibit D hereto.

(iv)           Transfer and Exchange of Beneficial Interests in a Restricted Global Security for Beneficial Interests in an Unrestricted Global Security. A beneficial interest in any Restricted Global Security may be exchanged by any Holder thereof for a beneficial interest in an Unrestricted Global Security or transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Security if the exchange or transfer complies with the requirements of Section 2.04(b)(ii) above and:

(A)            such transfer is effected pursuant to a Shelf Registration Statement in accordance with the Securities Purchase Agreement; or

 

(B)   the Registrar receives the following:

 

(y)           if the holder of such beneficial interest in a Restricted Global Security proposes to exchange such beneficial interest for a beneficial interest in an Unrestricted Global Security, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or

 

 

  

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(z)           if the holder of such beneficial interest in a Restricted Global Security proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Global Security, a certificate from such holder in the form of Exhibit B hereto, including the applicable certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (B), the Company may require the Holder or the transferor, as applicable, to provide to the Company an opinion of counsel selected by the Holder or the transferor, as applicable, the form and substance of which opinion shall be reasonably satisfactory to the Company, and/or other information reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.

If any such transfer is effected pursuant to subparagraph (A) or (B) above at a time when an Unrestricted Global Security has not yet been issued, the Company shall issue and, upon receipt of a Company Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global Securities in an aggregate principal amount equal to the aggregate principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above.

Beneficial interests in an Unrestricted Global Security cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global Security.

 

(c)   Transfer or Exchange of Beneficial Interests for Definitive Securities.

(i)           Beneficial Interests in Restricted Global Securities to Restricted Definitive Securities. Subject to Section 2.04(a), if any holder of a beneficial interest in a Restricted Global Security proposes to exchange such beneficial interest for a Restricted Definitive Security or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Restricted Definitive Security, then, upon receipt by the Registrar of the following documentation:

 

(A)           if the holder of such beneficial interest in a Restricted Global Security proposes to exchange such beneficial interest for a Restricted Definitive Security, a certificate from such holder in the form of Exhibit C, including the certifications in item (2)(a) thereof;

(B)           if such beneficial interest is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

(C)           if such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

(D)           if such beneficial interest is being transferred to a Non-U.S. Person in an “offshore transaction” in accordance with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

 

 

  

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(E)           if such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3) thereof, if applicable, and the transferee must deliver to the Registrar a signed letter substantially in the form of Exhibit D hereto;

(F)           if such beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

(G)           if such beneficial interest is being transferred pursuant to an effective registration statement under the Securities Act, a certificate substantially in the form of Exhibit B hereto, including the certifications in item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Security to be reduced accordingly pursuant to Section 2.04(h) hereof, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Security in the appropriate principal amount. Any Restricted Definitive Security issued in exchange for a beneficial interest in a Restricted Global Security pursuant to this Section 2.04 shall be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depository and the Participant or Indirect Participant. The Trustee shall deliver such Restricted Definitive Securities to the Persons in whose names such Securities are so registered. Any Restricted Definitive Security issued in exchange for a beneficial interest in a Restricted Global Security pursuant to this Section 2.04(c)(i) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained therein.

 

(ii)           Beneficial Interests in Legended Regulation S Global Security to Definitive Securities. Notwithstanding Sections 2.04(c)(i)(A) and (D) hereof, a beneficial interest in the Legended Regulation S Global Security may not be exchanged for a Definitive Security or transferred to a Person who takes delivery thereof in the form of a Definitive Security prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificate or other satisfactory evidence pursuant to Rule 903(b)(3)(ii)(B) of the Securities Act, except in the case of a transfer pursuant to an exemption from the registration requirements of the Securities Act other than Rule 903 or Rule 904.

(iii)           Beneficial Interests in Restricted Global Securities to Unrestricted Definitive Securities. Subject to Section 2.04(a), a holder of a beneficial interest in a Restricted Global Security may exchange such beneficial interest for an Unrestricted Definitive Security or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive Security only if:

(A)          such transfer is effected pursuant to a Shelf Registration Statement in accordance with the Securities Purchase Agreement; or

 

(B)   the Registrar receives the following:

 

(y)           if the holder of such beneficial interest in a Restricted Global Security proposes to exchange such beneficial interest for a Definitive Security that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof; or

 

 

  

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(z)           if the holder of such beneficial interest in a Restricted Global Security proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a Definitive Security that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit B hereto, including the applicable certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (B), the Company may require the Holder or the transferor, as applicable, to provide to the Company an opinion of counsel selected by the Holder or the transferor, as applicable, the form and substance of which opinion shall be reasonably satisfactory to the Company, and/or other information reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.

(iv)           Beneficial Interests in Unrestricted Global Securities to Unrestricted Definitive Securities. Subject to 2.04(a), if any holder of a beneficial interest in an Unrestricted Global Security proposes to exchange such beneficial interest for a Definitive Security or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Security, then, upon satisfaction of the conditions set forth in Section 2.04(b)(ii) above, the Trustee shall cause the aggregate principal amount of the applicable Global Security to be reduced accordingly pursuant to Section 2.04(h) below, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Security in the appropriate principal amount. Any Definitive Security issued in exchange for a beneficial interest pursuant to this Section 2.04(c)(iv) shall be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from or through the Depository and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Securities to the Persons in whose names such Securities are so registered. Any Definitive Security issued in exchange for a beneficial interest pursuant to this Section 2.04(c)(iv) shall not bear the Private Placement Legend.

 

             (d)   Transfer and Exchange of Definitive Securities for Beneficial Interests.

 

  (i)           Restricted Definitive Securities to Beneficial Interests in Restricted Global Securities. If any Holder of a Restricted Definitive Security proposes to exchange such Security for a beneficial interest in a Restricted Global Security or to transfer such Restricted Definitive Security to a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Security, then, upon receipt by the Registrar of the following documentation:

(A)           if the Holder of such Restricted Definitive Security proposes to exchange such Security for a beneficial interest in a Restricted Global Security, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof;

(B)           if such Restricted Definitive Security is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

 

 

  

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(C)           if such Restricted Definitive Security is being transferred to a Non-U.S. Person in an “offshore transaction” in accordance with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B, including the certifications in item (2) thereof;

(D)           if such Restricted Definitive Security is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; or

(E)           if such Restricted Definitive Security is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3) thereof, if applicable, and the transferee must deliver to the Registrar a signed letter substantially in the form of Exhibit D hereto;

(F)           if such Restricted Definitive Security is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; or

(G)           if such Restricted Definitive Security is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

the Trustee shall cancel the Restricted Definitive Security, and increase or cause to be increased the aggregate principal amount of, in the case of clause (A) above, the appropriate Restricted Global Security, in the case of clause (B) above, the 144A Global Security, and in the case of clause (C) above, the Regulation S Global Security and in all other cases, the IAI Global Security.

 

(ii)           Restricted Definitive Securities to Beneficial Interests in Unrestricted Global Securities. A Holder of a Restricted Definitive Security may exchange such Security for a beneficial interest in an Unrestricted Global Security or transfer such Restricted Definitive Security to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Security only if:

(A)           such transfer is effected pursuant to a Shelf Registration Statement in accordance with the Securities Purchase Agreement; or

 

(B)   the Registrar receives the following:

 

(y)           if the Holder of such Restricted Definitive Security proposes to exchange such Security for a beneficial interest in the Unrestricted Global Security, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or

(z)           if the Holder of such Restricted Definitive Security proposes to transfer such Security to a Person who shall take delivery thereof in the form of a beneficial interest in the Unrestricted Global Security, a certificate from such Holder in the form of Exhibit B hereto, including the applicable certifications in item (4) thereof;

 

 

  

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and, in each such case set forth in this subparagraph (B), the Company may require the Holder or the transferor, as applicable, to provide to the Company an opinion of counsel selected by the Holder or the transferor, as applicable, the form and substance of which opinion shall be reasonably satisfactory to the Company, and/or other information reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.

Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.04(d)(ii), the Trustee shall cancel the Definitive Securities and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Security.

(iii)           Unrestricted Definitive Securities to Beneficial Interests in Unrestricted Global Securities. A Holder of an Unrestricted Definitive Security may exchange such Security for a beneficial interest in an Unrestricted Global Security or transfer such Unrestricted Definitive Security to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Security at any time. Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted Definitive Security and increase or cause to be increased the aggregate principal amount of one of the Unrestricted Global Securities.

If any such exchange or transfer from a Definitive Security to a beneficial interest in an Unrestricted Global Security is effected pursuant to Section 2.04(d)(ii)-(iii) above at a time when an Unrestricted Global Security has not yet been issued, the Company shall issue and, upon receipt of a Company Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global Securities in an aggregate principal amount equal to the principal amount of Definitive Securities so transferred.

 

(e)           Transfer and Exchange of Definitive Securities for Definitive Securities. Upon request by a Holder of Definitive Securities and such Holder’s compliance with the provisions of this Section 2.04(e), the Registrar shall register the transfer or exchange of Definitive Securities. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Registrar the Definitive Securities duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.04(e).

(i)           Restricted Definitive Securities to Restricted Definitive Securities. Any Restricted Definitive Security may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Security if the Registrar receives the following:

(A)           if the transfer will be made pursuant to Rule 144A, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof;

(B)           if such transfer will be made pursuant to Rule 903 or Rule 904, then, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; or

 

 

  

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(C)           if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, and opinion of counsel required by item (3) thereof, if applicable.

(ii)           Restricted Definitive Securities to Unrestricted Definitive Securities. Any Restricted Definitive Security may be exchanged by the Holder thereof for an Unrestricted Definitive Security or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Security if:

(A)           such transfer is effected pursuant to a Shelf Registration Statement in accordance with the Securities Purchase Agreement; or

 

(B)   the Registrar receives the following:

 

(y)          if the Holder of such Restricted Definitive Security proposes to exchange such Security for an Unrestricted Definitive Security, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or

(z)          if the Holder of such Restricted Definitive Security proposes to transfer such Security to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Security, a certificate from such Holder in the form of Exhibit B hereto, including the applicable certifications in item (4) thereof;

and, in each such case set forth in subparagraph (B) above, the Company may require the Holder or the transferor, as applicable, to provide to the Company an opinion of counsel selected by the Holder or the transferor, as applicable, the form and substance of which opinion shall be reasonably satisfactory to the Company, and/or other information reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.

(iii)           Unrestricted Definitive Securities to Unrestricted Definitive Securities. A Holder of Unrestricted Definitive Securities may transfer such Securities to a Person who takes delivery thereof in the form of an Unrestricted Definitive Security. Upon receipt of a request to register such a transfer, the Registrar shall register the Unrestricted Definitive Securities pursuant to the instructions from the Holder thereof.

(f)           Legends. The following legends shall appear on the face of all Global Securities and Definitive Securities issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture.

(i)           Private Placement Legend. Except as permitted below, each Global Security and each Definitive Security (and all Securities issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form:

THIS SECURITY AND THE COMMON STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND MAY NOT BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES AND IAI NOTES: ONE YEAR AFTER THE ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD AS IS PERMITTED UNDER THE SECURITIES ACT] [IN THE CASE OF REGULATION S NOTES: 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE DATE ON WHICH THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) WAS FIRST OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN RULE 902 OF REGULATION S) IN RELIANCE ON REGULATION S], ONLY (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT (E) TO AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’ WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

 

  

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Notwithstanding the foregoing, any Global Security or Definitive Security issued pursuant to subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii) or (e)(iii) or (f) of this Section 2.04 (and all Securities issued in exchange therefor or substitution thereof) shall not bear the Private Placement Legend.

(ii)           Global Security Legend.  Each Global Security shall bear a legend in substantially the following form:

 

 

  

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THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.04 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.04(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.06 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY, UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (570 WASHINGTON BOULEVARD, JERSEY CITY, NEW JERSEY 07310) (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

(g)           Legended Regulation S Global Security Legend. The Legended Regulation S Global Security shall bear a legend in substantially the following form:

BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT.

 

(h)           Cancellation or Adjustment of Global Securities. At such time as all beneficial interests in a particular Global Security have been exchanged for Definitive Securities or a particular Global Security has been redeemed, repurchased or canceled in whole and not in part, each such Global Security shall be returned to or retained and canceled by the Trustee in accordance with Section 2.06 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Security or for Definitive Securities, the principal amount of Securities represented by such Global Security shall be reduced accordingly and an endorsement shall be made on the “Schedule of Exchanges of Interests in such Global Security” by the Trustee or by the Depository at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Security, such other Global Security shall be increased accordingly and an endorsement shall be made on such Global Security by the Trustee or by the Depository at the direction of the Trustee to reflect such increase.

 

 

  

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(i)   General Provisions Relating to Transfers and Exchanges.

 

(i)           To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Global Securities and Definitive Securities upon receipt of a Company Order in accordance with Section 2.02 hereof or at the Registrar’s request.

 

(ii)           The last sentence of the first paragraph of Section 2.07 of the Base Indenture shall also not apply to any exchange pursuant to Sections 4.04 or 6.05 of this Supplemental Indenture.

(iii)          All Global Securities and Definitive Securities issued upon any registration of transfer or exchange of Global Securities or Definitive Securities shall be the valid and legally binding obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Securities or Definitive Securities surrendered upon such registration of transfer or exchange. Any Registrar appointed pursuant to Section 2.04 shall provide to the Trustee such information as the Trustee may reasonably require in connection with the delivery by such Registrar of Securities upon transfer or exchange of Securities. Each Holder of a Security agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable U.S. federal or state securities law.

(iv)          Subject to the rights of Holders as of the relevant record date to receive interest on the corresponding Interest Payment Date and Section 2.13 of the Base Indenture, prior to due presentment for the registration of a transfer of any Security, the Trustee, any Agent and the Company may deem and treat the Person in whose name any Security is registered as the absolute owner of such Security for the purpose of receiving payment of principal of and interest on such Securities and for all other purposes, and none of the Trustee, any Agent or the Company shall be affected by notice to the contrary.

(v)           The Trustee shall authenticate Global Securities and Definitive Securities in accordance with the provisions of Section 2.02.

(vi)          All certifications, certificates and opinions of counsel required to be submitted to the Registrar pursuant to this Section 2.04 to effect a registration of transfer or exchange may be submitted by facsimile or electronically.

(vii)         The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Securities (including any transfers between or among the Depository’s participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation as expressly required by, and to do so if and when expressly required by, the terms of this Indenture and to examine the same to determine substantial compliance as to form with the express requirements hereof.

(viii)        None of the Company, any Registrar or the Trustee shall be required to exchange or register a transfer of any Securities or portions thereof in respect of which a Fundamental Change Purchase Notice has been delivered and not withdrawn by the Holder thereof (except, in the case of the purchase of a Security in part, the portion thereof not to be purchased).

 

 

  

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Section 2.05 Outstanding Securities.

Securities converted pursuant to Article 6 are not outstanding Securities.

If a Paying Agent (other than the Company or an Affiliate of the Company) holds in respect of Securities on a Fundamental Change Purchase Date or the Final Maturity Date money sufficient to pay the principal of, and any accrued interest on, Securities (or portions thereof) payable on that date, then on and after such Fundamental Change Purchase Date or the Final Maturity Date, as the case may be, such Securities (or portions thereof, as the case may be) shall cease to be outstanding and any interest on them shall cease to accrue.

Section 2.06 Cancellation.

The Conversion Agent shall forward to the Trustee or its agent any Securities surrendered to them for conversion. The Company may not hold or resell Securities converted pursuant to Article 6 that are delivered for cancellation or issue any new Securities to replace any such Securities.

ARTICLE 3

REDEMPTION

Article 3 of the Base Indenture does not apply and is superseded in its entirety by the provisions of this Article.

Section 3.01 Right to Redeem. At any time after October 1, 2017, but prior to the Final Maturity Date, the Company shall be entitled to redeem the Securities at its option, in whole or in part, provided that the Closing Sale Price of the Company’s Common Stock for at least 20 Trading Days (whether or not consecutive) during the period of 30 consecutive Trading Days ending on the Trading Day immediately prior to the date of the Redemption Notice exceeds 130% of the applicable Conversion Price for the Securities on each applicable Trading Day. The redemption price for the Securities to be redeemed on any Redemption Date (the “Redemption Price”) will equal (a) 100% of the principal amount of the Securities being redeemed plus (b) accrued and unpaid interest (including additional interest), if any, to, but excluding, the Redemption Date, unless the Redemption Date falls after a Record Date but on or prior to the immediately succeeding Interest Payment Date, in which case the Company shall instead pay the full amount of accrued and unpaid interest, including any additional interest, to the Holder of record as of the close of business on such Record Date (it being understood that the Trustee does not have an affirmative duty to calculate the Redemption Price and that the Trustee is entitled to rely upon the request of the Company in a Redemption Notice). If Securities are redeemed on a date that is after a Record Date for the payment of interest and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest will not be paid to the Holder of Securities being redeemed, and instead the full amount of the relevant interest payment will be paid on such Interest Payment Date to the Holder of record on such Record Date.

Section 3.02. Notices to Paying Agent. If the Company elects to redeem Securities pursuant to the optional redemption provisions of the Securities, it shall notify the Paying Agent in writing of the Redemption Date, the principal amount of Securities to be redeemed and the paragraph of the Securities pursuant to which the redemption will occur.

 

 

  

20

  

 

 

The Company shall give each notice to the Paying Agent provided for in this Section 3.02 at least 45 days before the Redemption Date unless the Paying Agent consents to a shorter period; provided, however, that if the Company mails a Redemption Notice to Holders more than 30 days prior to the Redemption Date, in accordance with Section 3.05 hereto, the Company shall immediately give notice to the Paying Agent. Such notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Company to the effect that such redemption will comply with the conditions herein.

Section 3.03. Selection of Securities to Be Redeemed. In the event that the Company chooses to redeem less than all of the Securities at any time, selection of the Securities for redemption shall be made by the Paying Agent by lot or by such method in accordance with the Depository’s procedures. The Paying Agent shall make the selection from outstanding Securities not previously called for redemption. Securities and portions of them the Paying Agent selects shall be in principal amounts of $1,000 or multiples of $1,000. Provisions of this Supplemental Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Paying Agent shall notify the Company promptly of the Securities or portions of Securities to be redeemed.

Section 3.04. Notice of Redemption. At least 30 days but not more than 60 days before a date for redemption of Securities, the Company shall mail a notice of redemption (a “Redemption Notice”) by first-class mail (or otherwise arrange for delivery in accordance with the requirements of the Depository) to each Holder of Securities to be redeemed at such Holder’s registered address, except that Redemption Notices may be mailed or otherwise given more than 60 days prior to the Redemption Date if the notice is issued in connection with a defeasance of the Securities or a satisfaction and discharge of the Indenture. Any inadvertent defect in the Redemption Notice, including an inadvertent failure to give notice, to any Holder selected for redemption shall not impair or affect the validity of the redemption of any other Security redeemed in accordance with provisions of the Indenture. Simultaneously with providing such Redemption Notice, the Company shall issue a press release or publish a notice containing the information included therein or shall publish such information on the Company’s website or through such other public medium as the Company may use at such time.

The notice shall identify the Securities to be redeemed and shall state:

(i) the Redemption Date;

(ii) the Redemption Price;

(iii) the name and address of the Paying Agent;

(iv) that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price;

 

(v) if fewer than all the outstanding Securities are to be redeemed, the identification and principal amounts of the particular Securities to be redeemed;

(vi) that, unless the Company defaults in making such redemption payment, interest on Securities (or portion thereof) called for redemption ceases to accrue on and after the Redemption Date;

(vii) the “CUSIP” number, ISIN or “Common Code” number, if any, printed on the Securities being redeemed;

(viii) that no representation is made as to the correctness or accuracy of the “CUSIP” number, ISIN, or “Common Code” number, if any, listed in such notice or printed on the Securities;

(ix) that such Holder has a right to convert the Securities called for redemption upon satisfaction of the requirements therefor set in the Indenture, and the Conversion Rate applicable to such conversion; and

 

 

  

21

  

 

(x) the time at which such Holders’ right to convert the Securities called for redemption will expire, which will be the close of business on the Business Day immediately preceding the Redemption Date.

At the Company’s request, the Paying Agent shall give the Redemption Notice in the Company’s name and at the Company’s expense. In such event, the Company shall provide the Paying Agent with the information required by this Section.

Section 3.05. Effect of Redemption Notice. Once a Redemption Notice is mailed, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price stated in the Redemption Notice. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in the Redemption Notice, plus accrued interest to the Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the related Interest Payment Date), and such Securities shall be canceled by the Paying Agent. Failure to give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder.

Section 3.06. Deposit of Redemption Price. Prior to the Redemption Date, the Company shall deposit with the Paying Agent (or, if the Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the Redemption Price of and accrued interest on all Securities to be redeemed on that date other than Securities or portions of Securities called for redemption which have been delivered by the Company to the Paying Agent for cancellation.

Section 3.07. Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee or an authenticating agent shall authenticate for the Holder (at the Company’s expense) a new Security equal in principal amount to the unredeemed portion of the Security surrendered.

 

Section 3.08. Effect of Redemptions in Part. In the event of any redemption in part, the Company shall not be required to (i) issue, register the transfer of or exchange any Securities during a period beginning at the open of business 15 days before the mailing of a Redemption Notice and ending at the close of business on the earliest date on which the relevant Redemption Notice is deemed to have been given to all Holders of Securities to be redeemed or (ii) register the transfer of or exchange any Securities so selected for redemption, in whole or in part, except the unredeemed portion of any Securities being redeemed in part.

Section 3.09. Conditions to Redemption. No Securities may be redeemed if the principal amount of the Securities has been accelerated, and such acceleration has not been rescinded, on or prior to the Redemption Date (except in the case of an acceleration resulting from a default by us in the payment of the applicable Redemption Price with respect to such Securities).

ARTICLE 4

PURCHASE OF SECURITIES UPON A FUNDAMENTAL CHANGE

Section 4.01 Purchase of Securities at Option of the Holder Upon Fundamental Change.

(a) If at any time that Securities remain outstanding there shall occur a Fundamental Change, Securities shall be purchased by the Company at the option of the Holders, as of a date, determined by the Company in its sole discretion, that is not less than 20 Business Days and not more than 30 Business Days after the occurrence of the Fundamental Change (the “Fundamental Change Purchase Date”) at a purchase price equal to 100% of the principal amount of the Securities to be purchased, together with any accrued and unpaid interest to, but excluding, the Fundamental Change Purchase Date (the “Fundamental Change Purchase Price”), unless the Fundamental Change Purchase Date is after a Record Date and on or prior to the related Interest Payment Date, in which case interest accrued to the Interest Payment Date will be paid to Holders of the Securities as of the preceding Record Date and the Fundamental Change Purchase Price payable to any Holder surrendering such Holder’s Security for purchase pursuant to this Article 4 shall be equal to the principal amount of Securities subject to purchase and will not include any accrued and unpaid interest. The Fundamental Change Purchase Price shall be payable in cash, subject to satisfaction by or on behalf of any Holder of the requirements set forth in subsection (c) of this Section 4.01. Notwithstanding the foregoing, the Company may not repurchase the Securities upon the occurrence of a Fundamental Change if the principal amount of the Securities has been accelerated and such acceleration has not been rescinded on or prior to the Fundamental Change Purchase Date.

 

 

  

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	 	A “Fundamental Change” shall mean the occurrence of a Change in Control or a Termination of Trading.
	 	 
	 	A “Change in Control” shall be deemed to have occurred if any of the following occurs after the date hereof:
	 	 
	  	
(i)

	
any “person” or “group” (as such terms are defined below) is or becomes the “beneficial owner” (as defined below), directly or indirectly, of shares of Voting Stock of the Company representing 50% or more of the total voting power of all outstanding classes of Voting Stock of the Company or has the power, directly or indirectly, to elect a majority of the members of the Board of Directors;

 

	  	
(ii)

	
the Company consolidates with, enters into a binding share exchange with, or merges with or into, another Person or the Company sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of the assets of the Company, or any Person consolidates with, or merges with or into, the Company, in any such event other than pursuant to a transaction (A) in which the Persons that “beneficially owned” (as defined below), directly or indirectly, shares of Voting Stock of the Company immediately prior to such transaction “beneficially own” (as defined below), directly or indirectly, shares of Voting Stock of the Company representing at least a majority of the total voting power of all outstanding classes of Voting Stock of the surviving or transferee Person, with such Holders’ proportional voting power immediately after such transaction vis-à-vis each other with respect to the securities they receive in such transaction being in substantially the same proportions as their respective voting power vis-à-vis each other immediately prior to such transaction, or (B) which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving Person; or

 

	  	
(iii)

	
the holders of capital stock of the Company approve any plan or proposal for the liquidation or dissolution of the Company (whether or not otherwise in compliance with the terms of this Indenture).

For the purpose of the definition of “Change in Control”, (i) “person” and “group” have the meanings given such terms under Section 13(d) and 14(d) of the Exchange Act or any successor provision to either of the foregoing, and the term “group” includes any group acting for the purpose of acquiring, holding, voting or disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act (or any successor provision thereto), (ii) a “beneficial owner” shall be determined in accordance with Rule 13d-3 under the Exchange Act, as in effect on the date of this Indenture, except that the number of shares of Voting Stock of the Company shall be deemed to include, in addition to all outstanding shares of Voting Stock of the Company and Unissued Shares deemed to be held by the “person” or “group” (as such terms are defined above) or other Person with respect to which the Change in Control determination is being made, all Unissued Shares deemed to be held by all other Persons, and (iii) the terms “beneficially owned” and “beneficially own” shall have meanings correlative to that of “beneficial owner.” The term “Unissued Shares” means shares of Voting Stock not outstanding that are subject to options, warrants, rights to purchase or conversion privileges exercisable within 60 days of the date of determination of a Change in Control.

 

 

  

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Notwithstanding anything to the contrary set forth in this Section 4.01, Holders shall not have the right to require the Company to purchase any Securities under clauses (i) and (ii) of the definition of Change in Control, and the Company shall not be required to deliver a written notice of a Fundamental Change incidental thereto as a result of any acquisition, consolidation, merger or binding share exchange or a sale, assignment, conveyance, transfer, lease or other disposition if at least 90% of the consideration (excluding cash payments for fractional shares and cash payments pursuant to dissenters’ appraisal rights) paid for the Common Stock in such transaction or transactions consists of shares of common stock traded on the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) (or which will be so traded immediately following the transaction or transactions) and as a result of such transaction or transactions the Securities become convertible into such shares of such common stock. Any event that would constitute a Change in Control pursuant to both clauses (i) and (ii) of the definition of Change in Control shall be treated as constituting a Change in Control solely pursuant to clause (ii).

A “Termination of Trading” means that the Common Stock or other securities into which the Securities are convertible are not approved for listing on the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors).

If any transaction in which the Common Stock is replaced by the securities of another entity occurs, following completion of any related Make Whole Adjustment Event Period and any related Fundamental Change Purchase Date, references to the Company in the definitions of “Fundamental Change,” “Change in Control” and “Termination of Trading” above shall apply to such other entity instead.

 

(b) Within 10 Business Days after the occurrence of a Fundamental Change, the Company shall mail a written notice of the Fundamental Change to the Trustee, Conversion Agent, Registrar and Paying Agent and to each Holder (and to beneficial owners as required by applicable law). The Company shall also issue a press release announcing the occurrence of such Fundamental Change (and make such press release available on the Company’s website). The notice shall include the form of a Fundamental Change Purchase Notice to be completed by the Holder and shall state:

 

	  	
(i)

	
briefly, the events causing such Fundamental Change;

 

	  	
(ii)

	
the effective date of such Fundamental Change;

 

	  	
(iii)

	
whether the Fundamental Change constitutes a Make Whole Adjustment Event and, if so, the Effective Date of such Make Whole Adjustment Event;

 

	  	
(iv)

	
briefly, the conversion rights of the Securities, the Conversion Price and any adjustments thereto;

 

	  	
(v)

	
the Holder’s right to require the Company to purchase the Securities;

 

	  	
(vi)

	
the Fundamental Change Purchase Date;

 

 

 

  

24

  

 

 

	 	
(vii)

	
the Fundamental Change Purchase Price;

 

	 	
(viii)

	
the date by which the Fundamental Change Purchase Notice pursuant to this Section 4.01 must be given;

 

	 	
(ix)

	
that Securities as to which a Fundamental Change Purchase Notice has been given may be converted pursuant to Article 6 of this Supplemental Indenture only to the extent that the Fundamental Change Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

 

	 	
(x)

	
the procedures that the Holder must follow to exercise rights under this Section 4.01;

 

	 	
(xi)

	
the procedures for withdrawing a Fundamental Change Purchase Notice, including a form of notice of withdrawal;

 

	 	 	 
	 	
(xii)

	
that the Holder must satisfy the requirements set forth in the Securities in order to convert the Securities; and

 

	 	
(xiii)

	
the name and address of each Paying Agent and Conversion Agent.

If any of the Securities is in the form of a Global Security, then the Company shall modify such notice to the extent necessary to accord with the procedures of the Depository applicable to the repurchase of Global Securities.

(c) A Holder may exercise its rights specified in subsection (a) of this Section 4.01 upon delivery of a written notice (which shall be in substantially the form included in Exhibit A hereto and which may be delivered by letter, overnight courier, hand delivery, facsimile transmission or in any other written form and, in the case of Global Securities, may (or, if Definitive Securities have not been issued, shall) be delivered electronically or by other means in accordance with the Depository’s customary procedures) of the exercise of such rights (a “Fundamental Change Purchase Notice”) to any Paying Agent at any time during the period between the date on which notice is given of the Fundamental Change and the close of business on the Business Day immediately preceding the Fundamental Change Purchase Date. The Fundamental Change Purchase Notice must specify the Securities for which the purchase right is being exercised.

The delivery of such Security to any Paying Agent (together with all necessary endorsements) at the office of such Paying Agent shall be a condition to the receipt by the Holder of the Fundamental Change Purchase Price therefor.

The Company shall purchase from the Holder thereof, pursuant to this Section 4.01, a portion of a Security if the principal amount of such portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security pursuant to Section 4.01 through Section 4.04 also apply to the purchase of such portion of such Security.

 

 

  

25

  

 

Notwithstanding anything herein to the contrary, any Holder delivering to a Paying Agent the Fundamental Change Purchase Notice contemplated by this subsection (c) shall have the right to withdraw such Fundamental Change Purchase Notice in whole or in a portion thereof that is a principal amount of $1,000 or in an integral multiple thereof at any time prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the Fundamental Change Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 4.02.

A Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Purchase Notice or written withdrawal thereof.

Anything herein to the contrary notwithstanding, in the case of Global Securities, any Fundamental Change Purchase Notice may be delivered or withdrawn and such Securities may be surrendered or delivered for purchase in accordance with the Applicable Procedures as in effect from time to time.

Section 4.02 Effect of Fundamental Change Purchase Notice.

Upon receipt by any Paying Agent of the Fundamental Change Purchase Notice specified in Section 4.01(c), the Holder of the Security in respect of which such Fundamental Change Purchase Notice was given shall (unless such Fundamental Change Purchase Notice is withdrawn as specified below) thereafter be entitled to receive the Fundamental Change Purchase Price with respect to such Security. Such Fundamental Change Purchase Price shall be paid to such Holder promptly following the later of (a) the Fundamental Change Purchase Date with respect to such Security (provided the conditions in Section 4.01(c) have been satisfied) and (b) the time of delivery of such Security to a Paying Agent by the Holder thereof in the manner required by Section 4.01(c). Securities in respect of which a Fundamental Change Purchase Notice has been given by the Holder thereof may not be converted into shares of Common Stock pursuant to Article 6 on or after the date of the delivery of such Fundamental Change Purchase Notice unless such Fundamental Change Purchase Notice has first been validly withdrawn.

A Fundamental Change Purchase Notice may be withdrawn by means of a written notice (which may be delivered by mail, overnight courier, hand delivery, facsimile transmission or in any other written form and, in the case of Global Securities, may be delivered electronically or by other means in accordance with the Depository’s customary procedures) of withdrawal delivered by the Holder to a Paying Agent at any time prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the Fundamental Change Purchase Date, specifying the principal amount of the Security or portion thereof (which must be a principal amount of $1,000 or an integral multiple of $1,000 in excess thereof) with respect to which such notice of withdrawal is being submitted.

Section 4.03 Deposit of Fundamental Change Purchase Price.

On or before 11:00 a.m., New York City time, on the Fundamental Change Purchase Date, the Company shall deposit with the Paying Agent (other than the Company or an Affiliate of the Company) an amount of money (in immediately available funds if deposited on such Fundamental Change Purchase Date) sufficient to pay the aggregate Fundamental Change Purchase Price of all the Securities or portions thereof that are to be purchased as of such Fundamental Change Purchase Date. The manner in which the deposit required by this Section 4.03 is made by the Company shall be at the option of the Company; provided that such deposit shall be made in a manner such that the Paying Agent shall have immediately available funds on the Fundamental Change Purchase Date.

If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay the Fundamental Change Purchase Price of any Security for which a Fundamental Change Purchase Notice has been tendered and not withdrawn in accordance with this Indenture, then, on the Fundamental Change Purchase Date, (i) such Security will cease to be outstanding and interest will cease to accrue (whether or not book-entry transfer of such Security is made or whether or not such Security is delivered to the Paying Agent) and (ii) all other rights of the Holder in respect thereof shall terminate (other than the right to receive the Fundamental Change Purchase Price and previously accrued and unpaid interest as aforesaid). The Company shall publicly announce the principal amount of Securities purchased as a result of such Fundamental Change on or as soon as practicable after the Fundamental Change Purchase Date.

 

 

  

26

  

 

To the extent that the aggregate amount of cash deposited by the Company pursuant to this Section 4.03 exceeds the aggregate Fundamental Change Purchase Price of the Securities or portions thereof that the Company is obligated to purchase, then promptly after the Fundamental Change Purchase Date the Paying Agent shall return any such excess cash to the Company.

Section 4.04 Securities Purchased in Part.

Any Security that is to be purchased only in part shall be surrendered at the office of a Paying Agent, and promptly after the Fundamental Change Purchase Date the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge, a new Security or Securities, of such authorized denomination or denominations as may be requested by such Holder, in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security so surrendered that is not purchased.

Section 4.05 Compliance with Securities Laws Upon Purchase of Securities.

In connection with any offer to purchase or repurchase Securities under Section 4.01, the Company shall (a) comply with Rule 13e-4, Rule 14e-1 and any other tender offer rules under the Exchange Act, to the extent any such rules are applicable, (b) file a Schedule TO (or any successor or similar schedule, form or report), if required, under the Exchange Act and (c) otherwise comply with all federal and state securities laws in connection with such offer to purchase or repurchase Securities, all so as to permit the rights of the Holders and obligations of the Company under Section 4.01 through Section 4.04 to be exercised in the time and in the manner specified therein.

ARTICLE 5

PAYMENT OF INTEREST AND MAKE WHOLE ADJUSTMENT EVENTS

Section 5.01 Interest Payments.

(a) The Company shall pay interest on the Securities at a rate of 4.5% per annum, payable semi-annually in arrears on April 1 and October 1 of each year (each, an “Interest Payment Date”), or if any such day is not a Business Day, the immediately following Business Day, commencing April 1, 2015. Interest on a Security shall be paid to the Holder of such Security at the close of business on March 15 or September 15 (each, a “Record Date”), as the case may be, next preceding the related Interest Payment Date, and shall be computed on the basis of a 360-day year comprised of twelve 30-day months. In the event of the maturity, conversion, or purchase of a Security by the Company at the option of the Holder, interest shall cease to accrue on such Security. The Company shall pay interest on the Final Maturity Date to Holders of record of a Security on the Record Date immediately preceding the Final Maturity Date regardless of whether such Holders convert their Securities.

(b) Upon conversion of a Security, (i) a Holder shall not receive any cash payment of interest (unless such conversion occurs between a Record Date and the Interest Payment Date to which it relates, in which case a Holder that was the Holder on the Record Date will receive on the Interest Payment Date accrued and unpaid interest) and the Conversion Rate shall not be adjusted to account for accrued and unpaid interest and (ii) except as set forth in clause (c) below, the Company’s delivery to a Holder of shares of Common Stock and cash, if any, into which the Security is convertible shall be deemed to satisfy its obligation to pay the principal amount of such Security and accrued and unpaid interest, if any, to but not including the Conversion Date with respect to such Security. Any accrued but unpaid interest shall be deemed to be paid in full upon conversion, rather than cancelled, extinguished or forfeited.

 

 

  

27

  

 

(c) Securities surrendered for conversion by a Holder after the close of business on any Record Date but prior to the corresponding Interest Payment Date must be accompanied by payment of an amount equal to the interest that will be payable on the Securities so converted on such Record Date; provided, however, that no such payment need be made (1) if the Company has specified a Fundamental Change Purchase Date that is after a Record Date and on or prior to the corresponding Interest Payment Date, (2) with respect to any Securities surrendered for conversion following the Record Date for the payment of interest immediately preceding the Final Maturity Date or (3) only to the extent of overdue interest, if any overdue interest exists at the time of conversion with respect to such Securities.

Section 5.02 Increased Conversion Rate Applicable to Certain Securities Surrendered in Connection with Make Whole Adjustment Events.

(a) Notwithstanding anything herein to the contrary, in the event a Holder elects to surrender its Securities for conversion in accordance with Article 6, at any time from, and including, the Effective Date of a Make Whole Adjustment Event to, and including, the close of business on the Business Day immediately preceding the related purchase date, or (in the case of a Make Whole Adjustment Event that does not also constitute a Fundamental Change) the 40th Scheduled Trading Day immediately following the Effective Date of such Make Whole Adjustment Event (such period, the “Make Whole Adjustment Event Period”), the Company will increase the Conversion Rate for the Securities surrendered for conversion by a number of additional shares of Common Stock (the “Additional Shares”), as described in this Section 5.02.

As used herein, a “Make Whole Adjustment Event” means (1) any Change in Control as defined in clauses (i), (ii) or (iii) of that term and (2) any Termination of Trading; provided, however, that an acquisition, consolidation, merger or binding share exchange or a sale, assignment, conveyance, transfer, lease or other disposition otherwise constituting a Change in Control will not constitute a Make Whole Adjustment Event if at least 90% of the consideration (excluding cash payments for fractional shares and cash payments pursuant to dissenters’ appraisal rights) paid for the Common Stock in such transaction or transactions consists of shares of common stock traded on the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) (or which will be so traded immediately following the transaction or transactions) and as a result of such transaction or transactions the Securities become convertible into such shares of such common stock. Any event that would constitute a Change in Control pursuant to both clauses (i) and (ii) of that term shall be treated as constituting a Change in Control solely pursuant to clause (ii) for purposes of determining whether a Make Whole Adjustment Event has occurred.

The number of Additional Shares by which the Conversion Rate shall be increased for conversions in connection with a Make Whole Adjustment Event shall be determined by reference to the table below and is based on the date on which the Make Whole Adjustment Event occurs or becomes effective (the “Effective Date”) and (1) the price paid or deemed paid per share of Common Stock in the Change in Control in the case of a Make Whole Adjustment Event described in clause (ii) of the definition of Change in Control in Section 4.01(a), in the event that the Common Stock is acquired for cash, or (2) the average of the Closing Sale Price of the Common Stock over the five consecutive Trading Day period ending on the Trading Day immediately preceding the Effective Date of such other Make Whole Adjustment Event, in the case of any other Make Whole Adjustment Event (such amount determined under the first and second clause of this sentence, as applicable, the “Stock Price”).

 

 

  

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Stock Price

	 
	
 

Effective Date

	 	$	6.50 	 	 	$	7.25 	 	 	$	8.00 	 	 	$	9.00 	 	 	$	10.00 	 	 	$	15.00 	 	 	$	20.00 	 	 	$	25.00 	 
	
 

September 15, 2014

	 	 	30.7692 	 	 	 	28.3673 	 	 	 	22.1974 	 	 	 	16.2959 	 	 	 	12.1686 	 	 	 	3.2445 	 	 	 	0.4348 	 	 	 	0.0000 	 
	
 

October 1, 2015

	 	 	30.7692 	 	 	 	28.6965 	 	 	 	22.2270 	 	 	 	16.1558 	 	 	 	12.0219 	 	 	 	3.6797 	 	 	 	1.2508 	 	 	 	0.0000 	 
	
 

October 1, 2016

	 	 	30.7692 	 	 	 	25.8994 	 	 	 	19.2241 	 	 	 	13.1342 	 	 	 	9.1930 	 	 	 	2.5519 	 	 	 	1.0797 	 	 	 	0.0000 	 
	
 

October 1, 2017

	 	 	30.7692 	 	 	 	23.9864 	 	 	 	16.7672 	 	 	 	9.9598 	 	 	 	5.4940 	 	 	 	0.0000 	 	 	 	0.0000 	 	 	 	0.0000 	 
	
 

October 1, 2018

	 	 	30.7692 	 	 	 	21.5907 	 	 	 	14.1031 	 	 	 	7.8692 	 	 	 	4.3377 	 	 	 	0.0000 	 	 	 	0.0000 	 	 	 	0.0000 	 
	
 

October 1, 2019

	 	 	30.7692 	 	 	 	18.0459 	 	 	 	4.3384 	 	 	 	0.0000 	 	 	 	0.0000 	 	 	 	0.0000 	 	 	 	0.0000 	 	 	 	0.0000 	 

If the exact Stock Prices and Effective Dates are not set forth in the table, then: (i) if the Stock Price is between two Stock Price amounts in the table or the Effective Date is between two Effective Dates in the table, the Additional Shares to be issued upon conversion of the Securities shall be determined by a straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Price amounts and the two Effective Dates in the table, based on a 365-day year; (ii) if the Stock Price exceeds $25.00 per share, subject to adjustment as set forth herein, no Additional Shares shall be issued upon conversion of the Securities; and (iii) if the Stock Price is less than $6.50 per share, subject to adjustment as set forth herein, no Additional Shares shall be issued upon conversion of the Securities.

Notwithstanding the foregoing, in no event will the total number of shares of Common Stock issuable upon conversion exceed 153.8461 shares per $1,000 principal amount of Securities, subject to adjustments for the same events for which the Conversion Price is adjusted and pursuant to the inverse adjustment factor applied in such Conversion Price adjustment pursuant to Section 6.06.

As soon as practicable after the Company determines the anticipated Effective Date of any proposed Make Whole Adjustment Event, the Company shall mail to each Holder, the Trustee and the Conversion Agent written notice of, and shall use commercially reasonable efforts to give such notice not more than 70 Scheduled Trading Days nor less than 40 Scheduled Trading Days in advance of such anticipated Effective Date. The Company shall also issue a press release announcing the anticipated Effective Date (and make such press release available on the Company’s website). Each such notice and press release shall also state that in connection with such Make Whole Adjustment Event, the Company shall increase, in accordance herewith, the Conversion Rate applicable to Securities entitled to such increase as provided herein (along with a description of how such increase shall be calculated and the time periods during which Securities must be surrendered in order to be entitled to such increase).

Section 5.03 Adjustments Relating to Make Whole Adjustment Event.

Whenever the Conversion Price shall be adjusted from time to time by the Company pursuant to Section 6.06, each Stock Price set forth in the table under the row titled “Stock Price” in the table in Section 5.02(a) shall be adjusted in the same manner in which, at the same time and for the same events for which, the Conversion Price is to be so adjusted. The Stock Prices in the table in Section 5.02(a) will be adjusted by the same adjustment factor applied to the Conversion Price pursuant to Section 6.06 and the number of additional shares by which the Conversion Rate will be increased will be adjusted by the inverse of that adjustment factor.

 

 

  

29

  

 

ARTICLE 6

CONVERSION

Section 6.01 Conversion Privilege. Subject to the further provisions of this Article 6 and paragraph 7 of the Securities, a Holder of a Security may convert the principal amount of such Security (or any portion thereof equal to $1,000 or any integral multiple of $1,000 in excess thereof) into shares of Common Stock at any time prior to the close of business on the Business Day immediately preceding the Final Maturity Date, at the Conversion Price then in effect.

Provisions of this Indenture that apply to conversion of all of a Security also apply to conversion of a portion of a Security.

A Security in respect of which a Holder has delivered a Fundamental Change Purchase Notice pursuant to Section 4.01(c) exercising the option of such Holder to require the Company to purchase such Security may be converted only if such Fundamental Change Purchase Notice is withdrawn by a written notice of withdrawal delivered to a Paying Agent prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the Fundamental Change Purchase Date in accordance with Section 4.02.

A Holder of Securities is not entitled to any rights of a holder of Common Stock until such Holder has converted its Securities and only to the extent such Securities are deemed to have been converted into Common Stock pursuant to this Article 6.

Section 6.02 Conversion Procedure.

The right to convert any Security may be exercised (a) if such Security is represented by a Global Security, by book-entry transfer to the Conversion Agent through the facilities of the Depository in accordance with the Applicable Procedures, and, if required, by payment of any tax or duty, in accordance with Section 6.04, that may be payable in respect of any transfer involving the issue or delivery of the Common Stock in the name of Person other than the Holder of the Security, or (b) if such Security is represented by a Definitive Security, by delivery of such Security at the specified office of the Conversion Agent, accompanied by: (i) a completed and manually signed conversion notice, in the form as set forth on the reverse of Security attached hereto as Exhibit A (a “Conversion Notice”); (ii) if such Definitive Security has been lost, stolen, destroyed or mutilated, a notice to the Registrar in accordance with Section 2.08 of the Base Indenture regarding the loss, theft, destruction or mutilation of the Security; (iii) appropriate endorsements and transfer documents if required by the Registrar or Conversion Agent; and (iv) payment of any tax or duty, in accordance with Section 6.04, which may be payable in respect of any transfer involving the issue or delivery of the Common Stock in the name of a Person other than the Holder of the Security. The “Conversion Date” shall be the Business Day on which the Holder satisfies all of the requirements set forth in the immediately preceding sentence. On the Settlement Date, subject to Section 6.05, the Company shall deliver to the Holder through a Conversion Agent a certificate for the number of whole shares of Common Stock issuable upon the conversion and cash in an amount payable upon conversion in lieu of any fractional shares pursuant to Section 6.03.

Securities that are validly surrendered for conversion in accordance with the terms of this Indenture will be deemed to have been converted immediately prior to the close of business on the Conversion Date. The person in whose name the Common Stock certificate is registered shall be deemed to be a stockholder of record as of the last Trading Day prior to the Conversion Date; provided, however, that if the related Conversion Date or such last Trading Day prior to the Conversion Date occurs on any date when the stock transfer books of the Company shall be closed, such occurrence shall not be effective to constitute the person or persons entitled to receive any such shares of Common Stock due upon conversion as the record holder or holders of such shares of Common Stock on such date, but such occurrence shall be effective to constitute the person or persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes at the close of business on the next succeeding day on which such stock transfer books are open. Upon conversion of Securities, such person shall no longer be a Holder.

 

 

  

30

  

 

Upon surrender of a Security that is converted in part, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder, a new Security equal in principal amount to the unconverted portion of the Security surrendered.

No Conversion Notice with respect to any Securities may be given by a Holder thereof if such Holder has also delivered a Fundamental Change Purchase Notice to the Company in respect of such Securities and not validly withdrawn such Fundamental Change Purchase Notice in accordance with Section 4.02, unless the Company defaults in the payment of the Fundamental Change Purchase Price.

Except as provided below, the Company shall pay or deliver the shares of Common Stock deliverable upon conversion of a Security (the “Conversion Obligation”), through the Conversion Agent on the Settlement Date; provided, that if prior to the relevant Conversion Date, the Common Stock has been replaced by Reference Property consisting solely of cash, pursuant to Section 6.12, the Company shall pay such cash on the third Trading Day immediately following the relevant Conversion Date. Notwithstanding the foregoing, if any information required to calculate the Conversion Obligation is not available as of the applicable Settlement Date, the Company will deliver the Conversion Obligation on the third Trading Day after the earliest Trading Day on which such calculation can be made (but in no event later than April 1, 2020 (the date that is six month following the Final Maturity Date)). If application of the proviso to the first sentence of this paragraph would result in settlement of a conversion during the 10 Trading Days immediately following the effective date of a Fundamental Change, the Settlement Date will instead be the 10th Trading Day following the relevant effective date. If any shares of Common Stock are due to a converting Holder, the Company shall issue or cause to be issued, and deliver to the Conversion Agent or to such Holder, or such Holder’s nominee or nominees, certificates or a book-entry transfer through the Depository for the number of full shares of Common Stock to which such Holder shall be entitled in satisfaction of such Conversion Obligation.

Section 6.03 Fractional Shares.

The Company will not issue fractional shares of Common Stock upon conversion of a Security. Instead, the Company will pay, in lieu of any fractional shares, an amount in cash determined by multiplying the Closing Sale Price of a full share of Common Stock on the last Trading Day prior to the Conversion Date by the fractional amount and rounding the product to the nearest whole cent. Whether fractional shares are issuable upon a conversion will be determined on the basis of the aggregate principal amount of Securities that the Holder is then converting into shares of Common Stock and the aggregate number of shares of Common Stock issuable upon such conversion.

Section 6.04 Taxes on Conversion.

If a Holder converts a Security, the Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon such conversion; provided, however, that the Holder shall pay any such tax which is due because the Holder requests the shares to be issued in a name other than the Holder’s name. The Conversion Agent may refuse to deliver the certificate representing the Common Stock being issued in a name other than the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax which will be due because the shares are to be issued in a name other than the Holder’s name. Nothing herein shall preclude any tax withholding required by law or regulation.

Section 6.05 Settlement Upon Conversion.

 

 

  

31

  

 

(a) Subject to Section 6.01, a Holder upon conversion will receive a number of shares of Common Stock equal to (1) the aggregate principal amount of Securities to be converted divided by $1,000, multiplied by (2) the applicable Conversion Rate.

(b) The Company shall, prior to the issuance of any Securities hereunder, and from time to time as may be necessary, reserve at all times and keep available, free from preemptive rights, out of its authorized but unissued Common Stock, a sufficient number of shares of Common Stock deliverable upon conversion of all of the Securities.

(c) All shares of Common Stock that may be issued upon conversion of the Securities shall be newly issued shares, shall be duly authorized, validly issued, fully paid and nonassessable and shall be free of any preemptive rights and free of any lien or adverse claim.

(d) The Company shall endeavor to comply with all applicable securities laws regulating the offer and delivery of any Common Stock upon conversion of Securities and shall list or cause to have quoted such shares of Common Stock on each national securities exchange, including the NYSE, or over-the-counter market or such other market on which the Common Stock is then listed or quoted; provided, however, that if the rules of such automated quotation system or exchange permit the Company to defer the listing of such Common Stock until the first conversion of the Securities into Common Stock in accordance with the provisions of this Indenture, the Company covenants to list such Common Stock issuable upon conversion of the Securities in accordance with the requirements of such automated quotation system or exchange at such time. Any Common Stock issued upon conversion of a Security hereunder which at the time of conversion was a “restricted security” (as defined in Rule 144 under the Securities Act) shall also be a restricted security.

(e) Notwithstanding anything herein to the contrary, nothing herein shall give to any Holder any rights as a creditor in respect of its right to conversion.

Section 6.06 Adjustment of Conversion Price.

The conversion price per share of Common Stock as stated in paragraph 7 of the Securities (the “Conversion Price”) shall be adjusted from time to time by the Company as follows:

(a) If the Company issues solely shares of Common Stock as a dividend or distribution on all or substantially all of the shares of Common Stock, or if the Company subdivides or combines the outstanding shares of Common Stock, the applicable Conversion Price will be adjusted based on the following formula:

	  	
CP = CP0  ×

	
OS0

	  
	  	  	
OS

	  

where

	
CP0

	
=

	
the Conversion Price in effect immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution, or immediately prior to the open of business on the effective date of such subdivision or combination of Common Stock, as the case may be;

	  	  	  
	
CP

	
=

	
the Conversion Price in effect immediately after the open of business on the Ex-Dividend Date for such dividend or distribution, or immediately after the open of business on the effective date of such subdivision or combination of Common Stock, as the case may be;

	  	  	  
	
OS0

	
=

	
the number of shares of Common Stock outstanding immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution, or immediately prior to the open of business on the effective date of such subdivision or combination of Common Stock, as the case may be; and

	  	  	  
	
OS

	
=

	
the number of shares of Common Stock outstanding immediately after such dividend or distribution, or immediately after the effective date of such subdivision or combination of Common Stock, as the case may be.

 

 

  

32

  

 

Such adjustment shall become effective immediately after the opening of business on the Ex-Dividend Date for such dividend or distribution, or the effective date for such subdivision or combination of Common Stock. If any dividend or distribution of the type described in this Section 6.06(a) is declared but not so paid or made, or the outstanding shares of Common Stock are not split or combined, as the case may be, the Conversion Price shall be immediately readjusted, effective as of the date the Board of Directors determines not to pay such dividend or distribution, or subdivide or combine the outstanding shares of Common Stock, as the case may be, to the Conversion Price that would then be in effect if such dividend, distribution, subdivision or combination of Common Stock had not been declared or announced.

(b) If the Company distributes to all or substantially all holders of its Common Stock any rights, options or warrants entitling them for a period of not more than 60 calendar days from the record date for such distribution to subscribe for or purchase shares of the Common Stock (or securities convertible into Common Stock), at a price per share (or a conversion price per share) less than the average of the Closing Sale Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution, the Conversion Price shall be decreased based on the following formula:

	  	
CP = CP0  ×

	
OS0 + Y

	  
	  	  	
OS0 + X

	  

where

	
CP0

	
=

	
the Conversion Price in effect immediately prior to the open of business on the Ex-Dividend Date for such distribution;

	  	  	  
	
CP

	
=

	
the Conversion Price in effect immediately after the open of business on the Ex-Dividend Date for such distribution;

	  	  	  
	
OS0

	
=

	
the number of shares of the Common Stock that are outstanding immediately prior to the open of business on the Ex-Dividend Date for such distribution;

	  	  	  
	
X

	
=

	
the total number of shares of the Common Stock issuable pursuant to such rights, options or warrants; and

	  	  	  
	
Y

	
=

	
the number of shares of the Common Stock equal to the aggregate price payable to exercise such rights, options or warrants, divided by the average of the Closing Sale Prices of Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date relating to such distribution.

Such adjustment shall be successively made whenever any such rights, options or warrants are distributed and shall become effective immediately after the opening of business on the Ex-Dividend Date for such distribution. To the extent that shares of the Common Stock are not delivered after the expiration of such rights, options or warrants, the Conversion Price shall be readjusted to the Conversion Price that would then be in effect had the adjustments made upon the issuance of such rights, options or warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered. If such rights, options or warrants are not so issued, the Conversion Price shall again be adjusted to be the Conversion Price that would then be in effect if such Ex-Dividend Date for such distribution had not been fixed.

For purposes of this Section 6.06(b), in determining whether any rights, options or warrants entitle the holders to subscribe for or purchase shares of the Common Stock at less than the average of the Closing Sale Prices of the Common Stock for each Trading Day in the applicable 10-consecutive Trading Day period, there shall be taken into account any consideration received by the Company for such rights, options or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by the Board of Directors. In no event shall the Conversion Price be increased pursuant to this Section 6.06(b).

 

 

  

33

  

 

(c) If the Company shall distribute shares of its Capital Stock, evidences of its indebtedness or other of its assets or property to all or substantially all holders of its Common Stock (other than (i) dividends or distributions (including subdivision of Common Stock) covered by Section 6.06(a) or Section 6.06(b), (ii) dividends or distributions paid exclusively in cash covered by Section 6.06(d) or (e), (iii) Spin-Offs to which the provisions set forth below in this Section 6.06(c) shall apply, and (iv) distributions of rights to all or substantially all holders of Common Stock pursuant to the adoption of a shareholder rights plan), then, in each such case the Conversion Price shall be decreased based on the following formula:

	  	
CP = CP0 ×

	
SP0 - FMV

	  
	  	  	
SP0

	  

where

	
CP0

	
=

	
the Conversion Price in effect immediately prior to the open of business on the Ex-Dividend Date for such distribution;

	  	  	  
	
CP

	
=

	
the Conversion Price in effect immediately after the open of business on the Ex-Dividend Date for such distribution.

	  	  	  
	
SP0

	
=

	
the average of the Closing Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution; and

	  	  	  
	
FMV

	
=

	
the fair market value (as determined by the Board of Directors) of the shares of Capital Stock, evidences of indebtedness, assets or property distributed with respect to each outstanding share of the Common Stock as of the open of business on the Ex-Dividend Date for such distribution.

If the then-fair market value of the portion of the shares of Capital Stock, evidences of indebtedness or other assets or property so distributed applicable to one share of Common Stock is equal to or greater than the average of the Closing Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending on the Trading Day immediately preceding the Ex-Dividend Date for such distribution, in lieu of the foregoing adjustment, adequate provisions shall be made so that each Holder of a Security shall have the right to receive on conversion in respect of each Security held by such Holder, in addition to the number of shares of Common Stock to which such Holder is entitled to receive, the amount and kind of securities and assets such Holder would have received had such Holder already owned a number of shares of Common Stock equal to the Conversion Rate immediately prior to the record date for the distribution of the securities or assets.

With respect to an adjustment pursuant to this Section 6.06(c) where there has been a dividend or other distribution on the Common Stock of shares of Capital Stock of any class or series, or similar equity interest, of or relating to a Subsidiary or other business unit of the Company (a “Spin-Off”), the Conversion Price will be decreased based on the following formula:

	  	
CP = CP0 ×

	
MP0

	  
	  	  	
FMV + MP0

	  

where

	
CP0

	
=

	
the Conversion Price in effect immediately prior to the open of business on the Ex-Dividend Date for the Spin-Off;

	  	  	  
	
CP

	
=

	
the Conversion Price in effect immediately after the open of business on the Ex-Dividend Date for the Spin-Off;

 

 

  

34

  

 

 

	  	  	  
	
FMV

	
=

	
the average of the Closing Sale Prices of the Capital Stock or similar equity interests distributed to holders of the Common Stock applicable to one share of the Common Stock over the first 10 consecutive Trading Day period immediately following, and including, the Ex-Dividend Date for the Spin-Off (such period, the “Valuation Period”), and

	  	  	  
	
MP0

	
=

	
the average of the Closing Sale Prices of the Common Stock over the Valuation Period.

The adjustment to the Conversion Price under the preceding paragraph of this Section 6.06(c) shall be made immediately after the open of business on the day after the last day of the Valuation Period, but shall become effective as of the open of business on the Ex-Dividend Date for the Spin-Off. If the Ex-Dividend Date for the Spin-Off is less than 10 Trading Days prior to, and including, the Conversion Date in respect of any conversion, references within this Section 6.06(c) to 10 Trading Days shall be deemed replaced, for purposes of calculating the affected daily Conversion Prices in respect of that conversion, with such lesser number of Trading Days as have elapsed from, and including, the Ex-Dividend Date for the Spin-Off to, and including, the last Trading Day prior to the Conversion Date. For purposes of determining the Conversion Price, in respect of any conversion during the 10 Trading Days commencing on the Ex-Dividend Date of any Spin-Off, references in the portion of this Section 6.06(c) related to Spin-Offs to 10 Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed from, and including, the Ex-Dividend Date for such Spin-Off to, but excluding, the Conversion Date for such conversion.

For purposes of this Section 6.06(c), Section 6.06(a) and Section 6.06(b), any dividend or distribution to which this Section 6.06(c) is applicable that also includes shares of Common Stock, or rights, options or warrants to subscribe for or purchase shares of Common Stock to which Section 6.06(a) or Section 6.06(b) applies (or both), shall be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets or shares of Capital Stock other than such shares of Common Stock or rights, options or warrants to which this Section 6.06(c) applies (and any Conversion Price adjustment required by this Section 6.06(c) with respect to such dividend or distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights, options or warrants (and any further Conversion Price adjustment required by Section 6.06(a) and Section 6.06(b) with respect to such dividend or distribution shall then be made), except (A) the Ex-Dividend Date of such dividend or distribution shall be substituted as “the Ex-Dividend Date,” “the Ex-Dividend Date relating to such distribution of such rights, options or warrants” and “the Ex-Dividend Date for such distribution” within the meaning of Section 6.06(a) and Section 6.06(b) and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding immediately prior to the Ex-Dividend Date for such dividend or distribution, or the effective date of such share split or share combination, as the case may be” within the meaning of Section 6.06(a) or “outstanding immediately prior to the Ex-Dividend Date for such dividend or distribution” within the meaning of Section 6.06(b).

In no event shall the Conversion Price be increased pursuant to this Section 6.06(c).

(d) If the Company makes or pays any cash dividend or distribution to all or substantially all holders of its outstanding Common Stock (other than (i) distributions pursuant to Section 6.06(e) and (ii) any dividend or distribution in connection with the liquidation, dissolution or winding up of the Company), the applicable Conversion Price shall be decreased based on the following formula:

	  	
CP = CP0 ×

	
SP0 – C

	  
	  	  	
SP0

	  

where

	
CP0

	
=

	
the Conversion Price in effect immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution;

	  	  	  
	
CP

	
=

	
the Conversion Rate in effect immediately after the open of business on the Ex-Dividend Date for such dividend or distribution;

	  	  	  

 

 

  

35

  

 

 

	
SP0

	
=

	
the average of the Closing Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such dividend or distribution; and

	  	  	  
	
C

	
=

	
the amount in cash per share the Company pays or distributes to holders of its Common Stock.

If any dividend or distribution described in this Section 6.06(d) is declared but not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price that would then be in effect if such dividend or distribution had not been declared.

For the avoidance of doubt, for purposes of this Section 6.06(d), in the event of any reclassification of the Common Stock, as a result of which the Securities become convertible into more than one class of Common Stock, if an adjustment to the Conversion Price is required pursuant to this Section 6.06(d), references in this Section to one share of Common Stock or Closing Sale Prices of one share of Common Stock shall be deemed to refer to a unit or to the price of a unit consisting of the number of shares of each class of Common Stock into which the Securities are then convertible equal to the number of shares of such class issued in respect of one share of Common Stock in such reclassification. The above provisions of this paragraph shall similarly apply to successive reclassifications.

In no event shall the Conversion Price be increased pursuant to this Section 6.06(d).

(e) If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or exchange offer for the Common Stock and if the cash and value of any other consideration included in the payment per share of the Common Stock exceeds the average of the Closing Sale Prices of the Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer (the “Expiration Date”), the Conversion Price shall be decreased based on the following formula:

	  	
CP = CP0 ×

	
OS0 × SP

	  
	  	  	
AC + (OS × SP)

	  

where

	
CP0

	
=

	
the Conversion Price in effect immediately prior to the open of business on the Trading Day next succeeding the Expiration Date;

	  	  	  
	
CP

	
=

	
the Conversion Price in effect immediately after the open of business on the Trading Day next succeeding the Expiration Date;

	  	  	  
	
AC

	
=

	
the aggregate value of all cash and any other consideration (as determined by the Board of Directors) paid or payable for shares of Common Stock purchased in such tender or exchange offer;

	  	  	  
	
OS0

	
=

	
the number of shares of Common Stock outstanding immediately prior to the time (the “Expiration Time”) such tender or exchange offer expires (prior to giving effect to such tender offer or exchange offer);

	  	  	  
	
OS

	
=

	
the number of shares of Common Stock outstanding immediately after the Expiration Time (after giving effect to such tender offer or exchange offer); and

	  	  	  
	
SP

	
=

	
the average of the Closing Sale Prices of Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the Expiration Date.

Such adjustment under this Section 6.06(e) shall become effective at the opening of business on the Trading Day next succeeding the Expiration Date. If the Trading Day next succeeding the Expiration Date is less than 10 Trading Days prior to, and including, the Conversion Date in respect of any conversion, references within this Section 6.06(e) to 10 Trading Days shall be deemed replaced, for purposes of calculating the affected daily Conversion Prices in respect of that conversion, with such lesser number of Trading Days as have elapsed from, and including, the Trading Day next succeeding the Expiration Date to, and including, the last Trading Day prior to the Conversion Date. For purposes of determining the Conversion Price, in respect of any conversion during the 10 Trading Days commencing on the Trading Day next succeeding the Expiration Date, references within this Section 6.06(e) to 10 Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed from, and including, the Trading Day next succeeding the Expiration Date to, but excluding, the Conversion Date for such conversion. If the Company is obligated to purchase shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any or all or any portion of such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange offer had not been made or had been made only in respect of the purchases that had been effected. In no event shall the Conversion Price be increased pursuant to this Section 6.06(e).

 

 

  

36

  

 

(f) [Reserved]

(g) If, in respect of any Trading Day prior to the Conversion Date for a converted Security:

	  	
(i)

 

	
any event that requires an adjustment to the Conversion Price under any of clauses (a), (b), (c), (d) and (e) of this Section 6.06 that would require adjustment thereunder has not yet resulted in an adjustment to the Conversion Price as of such Trading Day; and

 

	  	
(ii)

 

	
the shares of Common Stock the Holder of such Security shall receive in respect of such Trading Day are not entitled to participate in the distribution or transaction giving rise to such adjustment event because, pursuant to the terms of the second paragraph of Section 6.02, such shares were not held by such Holder on the record date corresponding to such distribution or transaction,

 

then the Company will adjust the number of shares of Common Stock deliverable for such Trading Day to reflect the relevant distribution or transaction.

Section 6.07 No Adjustment.

All calculations and other determinations under this Article 6 shall be made by the Company and shall be made to the nearest one-ten thousandth (1/10,000) of a share. No adjustment in the Conversion Price shall be required unless the adjustment would require an increase or decrease of at least 1% in the Conversion Price as last adjusted; provided, however, the Company shall carry forward any adjustments that are less than 1% of the Conversion Rate and make such carried forward adjustments, regardless of whether the aggregate adjustment is less than 1%, (i) upon any conversion of Securities, (ii) upon any required repurchase of Securities in connection with a Fundamental Change, and (iii) on each of the 27 Scheduled Trading Days immediately preceding the Final Maturity Date.

Except as otherwise provided herein, no adjustment need be made:

(a) upon the issuance of any shares of the Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Company’s securities and the investment of additional optional amounts in shares of the Common Stock under any plan;

(b) upon the issuance of any shares of the Common Stock or options or rights to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of, or assumed by, the Company or any of the Company’s Subsidiaries;

 

 

  

37

  

 

(c) upon the issuance of any shares of the Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security not described in clause (b) of this subsection and outstanding as of the date the Securities were first issued; or

(d) for accrued and unpaid interest, if any.

Except as set forth in this Article 6, the Company shall not adjust the Conversion Price. The Company shall not be obligated to adjust the Conversion Price in or for any transaction in which Holders will participate without conversion of the Securities.

To the extent that the Securities become convertible into the right to receive cash, no adjustment need be made thereafter as to the cash. Interest will not accrue on the cash.

Section 6.08 Adjustment for Tax Purposes.

The Company shall be entitled to (but is not required to) make such reductions in the Conversion Price, in addition to those required by Section 6.06, as it in its discretion shall determine to be advisable in order to avoid or diminish any tax to holders of Common Stock (or holders of rights to purchase Common Stock) in connection with any stock dividends, subdivisions of shares, distributions of rights to purchase stock or securities or distributions of securities convertible into or exchangeable for stock (or rights to acquire such securities) hereafter made by the Company to its stockholders; provided the Company shall not take any action that would result in an adjustment to the Conversion Price in such a manner as to result in the reduction of the Conversion Price to less than the par value per share of the Common Stock.

Section 6.09 Notice of Conversion and Notice of Adjustment.

Whenever the Conversion Price is adjusted, the Company shall promptly deliver to the Conversion Agent an Officers’ Certificate setting forth the Conversion Price, detailing the calculation of the Conversion Price and briefly stating the facts upon which the adjustment is based. In addition, the Company will issue a press release containing such information and make such press release available on its website.

Unless and until the Trustee and Conversion Agent shall receive an Officers’ Certificate setting forth an adjustment of the Conversion Price, the Trustee and Conversion Agent may assume without inquiry that the Conversion Price has not been adjusted and that the last Conversion Price of which it has knowledge remains in effect.

Section 6.10 Notice of Certain Transactions.

In the event that:

(1) the Company takes any action which requires an adjustment in the Conversion Price;

(2) the Company consolidates or merges with, or transfers all or substantially all of its property and assets to, another corporation and shareholders of the Company must approve the transaction; or

(3) there is a dissolution or liquidation of the Company;

the Company shall mail to Holders and file with the Trustee and the Conversion Agent a notice stating the proposed record or effective date, as the case may be. The Company shall use commercially reasonable efforts to mail the notice at least 30 Business Days before such date and, in any event, as promptly as practicable thereafter and in no event less than 10 days prior to such event. Failure to mail such notice or any defect therein shall not affect the validity of any transaction referred to in clause (1), (2) or (3) of this Section 6.10.

 

 

  

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Section 6.11 Stockholder Rights Plans.

To the extent that the Company has a stockholder rights plan or other “poison pill” in effect upon conversion of the Securities, each share of Common Stock, if any, issued upon such conversion shall be entitled to receive the appropriate number of rights, if any, and the certificates representing the Common Stock issued upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of any such stockholder rights plan or poison pill, as the same may be amended from time to time. If, however, prior to the time of conversion, the rights provided by such stockholder rights plan or poison pill have separated from the shares of Common Stock in accordance with the provisions of the applicable stockholder rights agreement so that the Holders of the Securities would not be entitled to receive any rights in respect of Common Stock, if any, issuable upon conversion of the Securities, the Conversion Rate will be adjusted at the time of separation as if the Company has distributed to all holders of Common Stock, shares of Capital Stock of the Company, evidences of indebtedness or other assets as provided in Section 6.06(c), subject to readjustment in the event of the expiration, termination or redemption of such rights.

Section 6.12 Effect of Reclassification, Consolidation, Merger or Sale on Conversion Privilege.

If any of the following shall occur, namely: (i) any reclassification or change of shares of Common Stock issuable upon conversion of the Securities (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination, or any other change for which an adjustment is provided in Section 6.06); (ii) any consolidation, merger or binding share exchange involving the Company; or (iii) any sale, assignment, conveyance, transfer, lease or other disposition to another person of the Company’s property and assets as an entirety or substantially as an entirety, in each case as a result of which holders of Common Stock shall be entitled to receive cash, securities or other property with respect to or in exchange for such Common Stock (any such event a “Merger Event”), then:

(a) the Company, or such successor purchasing Person, as the case may be, shall, as a condition precedent to such Merger Event, execute and deliver to the Trustee a supplemental indenture (which shall comply with the TIA as in force at the date of execution of such supplemental indenture if such supplemental indenture is then required to so comply) providing that Holders shall be entitled thereafter to convert their Securities into the type and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof) that a holder of a number of shares of the Common Stock equal to the Conversion Rate immediately prior to such Merger Event would have owned or been entitled to receive (the “Reference Property”) upon such Merger Event; provided that, at and after the effective time of any such Merger Event, any amount otherwise payable in cash upon conversion of the Securities shall continue to be payable as provided in Section 6.05, including the Company’s right to determine the form of consideration as provided therein. For purposes of this Article 6, if the Common Stock has been replaced by Reference Property as a result of any transaction described in this Section 6.12(a), references to the Common Stock shall refer to such Reference Property.

(b) In the event the Company shall execute a supplemental indenture pursuant to this Section 6.12, the Company shall promptly file with the Trustee (x) an Officers’ Certificate briefly describing the Merger Event, the kind or amount of shares of stock or other securities or property (including cash) that will comprise the Reference Property after any such Merger Event, any adjustment to be made with respect thereto and stating that all conditions precedent have been complied with and (y) an Opinion of Counsel that all conditions precedent have been complied with. Any failure to deliver such Officers’ Certificate shall not affect the legality or validity of such supplemental indenture.

(c) With respect to each $1,000 principal amount of Securities surrendered for conversion after the effective date of any such Merger Event in lieu of cash and shares of Common Stock, if any, otherwise provided for hereunder, the Company shall deliver to the converting Holder a number of units of Reference Property (each such unit comprised of the kind and amount of shares of stock, securities or other property or assets (including cash or any combination thereof) that a holder of one share of Common Stock immediately prior to such Merger Event would have owned or been entitled to receive based on the Weighted Average Consideration) equal to (1) the aggregate principal amount of Securities to be converted, divided by $1,000, multiplied by (2) the then-applicable Conversion Rate.

 

 

  

39

  

 

	  	
(i)

	
The Company will deliver the cash in lieu of fractional units of Reference Property as set forth pursuant to Section 6.03 (provided that the amount of such cash shall be determined as if references in such Section to “the Closing Sale Price” were instead a reference to “the Closing Sale Price of a unit of Reference Property” composed of the type and amount of shares of stock, securities or other property or assets (including cash or any combination thereof) that a holder of one share of Common Stock immediately prior to such Merger Event would have owned or been entitled to receive based on the Weighted Average Consideration).

	  	  	  
	  	
(ii)

	
For purposes of this Section 6.12, the “Weighted Average Consideration” means the weighted average of the types and amounts of consideration received by the holders of the Common Stock entitled to receive cash, securities or other property or assets with respect to or in exchange for such Common Stock in any Merger Event who affirmatively make such an election; provided that, if the types and amounts of consideration that holders of the Common Stock would be entitled to receive with respect to or in exchange for such Common Stock is based in part upon any form of stockholder election, the “Weighted Average Consideration” will be deemed to be (A) if holders of the majority of the shares of Common Stock affirmatively make such an election, the weighted average of the types and amounts of consideration received by the holders of the Common Stock that affirmatively make such an election or (B) if the holders of a majority of the shares of Common Stock do not affirmatively make such an election, the types and amount of consideration actually received by such holders.

	 	 	 
	  	
(iv)

	
The Company shall notify the Holders of the Weighted Average Consideration as soon as practicable after the Weighted Average Consideration is determined.

	 	 	 
	  	
(v)

	
The above provisions of this Section shall similarly apply to successive Merger Events.

Promptly following the effective time of any such Merger Event, the Company shall notify the Trustee and the Conversion Agent and issue a press release describing the type or amount of cash, securities, property or other assets that will comprise the Reference Property after any such Merger Event (and shall make the press release available on its website).

Section 6.13 Trustee’s Disclaimer.

The Trustee and the Conversion Agent shall have no duty to determine when an adjustment under this Article 6 should be made, how it should be made or what such adjustment should be, but may accept as conclusive evidence of that fact or the correctness of any such adjustment, and shall be protected in relying upon, an Officers’ Certificate, including the Officers’ Certificate with respect thereto which the Company is obligated to file with the Trustee pursuant to Section 6.09. Neither the Trustee nor the Conversion Agent makes any representation as to the validity or value of any securities or assets issued upon conversion of Securities, and the Trustee and the Conversion Agent shall not be responsible for the Company’s failure to comply with any provisions of this Article 6.

 

 

  

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The Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture executed pursuant to Section 6.12, but may accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying upon, the Officers’ Certificate with respect thereto which the Company is obligated to file with the Trustee pursuant to Section 6.12.

Section 6.14 Voluntary Reduction.

The Company from time to time may reduce the Conversion Price by any amount for any period of time if the period is at least 20 Business Days and if the reduction is irrevocable during the period and the Board of Directors determines that such reduction would be in the best interest of the Company. The Company shall provide at least 15 days’ prior notice of any reduction in the Conversion Price; provided, however, in no event may the Company reduce the Conversion Price to be less than the par value per share of Common Stock.

ARTICLE 7

ADDITIONAL COVENANTS

In addition to the covenants set forth in Article 4 of the Base Indenture, the Securities shall be subject to the additional covenant set forth below:

Section 7.01 Payment of Additional Tax Amounts. All payments of interest and principal (including the payment of any amount upon Maturity or that constitutes all or part of a Conversion Obligation) by the Company under the Securities shall be made without withholding or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of a relevant jurisdiction or any political subdivision or taxing authority thereof or therein. The term “relevant jurisdiction” as used herein means the Marshall Islands, Singapore or any other jurisdiction in which the Company is organized or maintains an executive office or place of management. In that event, the Company, as applicable, will pay such additional amounts as may be necessary in order that the net amounts received by a Holder after such withholding or deduction shall equal the amount of interest and principal (including the payment of any amount upon Maturity or that constitutes all or part of a Conversion Obligation) which would have been receivable in respect of the Securities in the absence of such withholding or deduction (“Additional Tax Amounts”), except that no such Additional Tax Amounts shall apply to:

(a) any present or future tax, assessment or other governmental charge that would not have been so imposed but for the existence of any present or former connection between the Holder (or between a fiduciary, settlor, beneficiary, member or shareholder of the Holder, if the Holder is an estate, a trust, a partnership, a limited liability company or a corporation) and a relevant jurisdiction and its possessions, including, without limitation, the Holder (or such fiduciary, settlor, beneficiary, member or shareholder) being or having been a citizen or resident of a relevant jurisdiction or being or having been engaged in a trade or business or present in a relevant jurisdiction or having, or having had, a permanent establishment in a relevant jurisdiction;

(b) any estate, inheritance, gift, sales, transfer, capital gains, excise or personal property tax or any similar tax, assessment or governmental charge;

(c) any tax, assessment or other governmental charge that is payable otherwise than by withholding or deduction from payments on or in respect of any Security;

(d) any tax, assessment or other governmental charge that would not have been imposed but for the failure to comply with certification, information or other reporting requirements concerning the nationality, residence or identity of the Holder or beneficial owner of that Security, if compliance is required by statute or by regulation of a relevant jurisdiction or of any political subdivision or taxing authority thereof or therein as a precondition to relief or exemption from the tax, assessment or other governmental charge;

 

 

  

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(e) any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of, or interest on any note, if payment can be made without withholding by at least one other paying agent; or

(f) in the case of any combination of the items listed above.

Nor will Additional Tax Amounts be paid with respect to any payment on a Security to a Holder who is a fiduciary, a partnership, a limited liability company or other than the sole beneficial owner of that payment to the extent that payment would be required by the laws of a relevant jurisdiction (or any political subdivision thereof) to be included in the income, for tax purposes, of a beneficiary or settlor with respect to the fiduciary, a member of that partnership, an interestholder in a limited liability company or a beneficial owner who would not have been entitled to the Additional Tax Amounts had that beneficiary, settlor, member or beneficial owner been the Holder.

Section 7.02. Limitation on Incurrence of Indebtedness. The Company shall not create, issue, incur, assume, guarantee or otherwise become directly or indirectly liable for the payment of, contingently or otherwise (collectively, “incur”), any Indebtedness, unless the Company’s Value Adjusted Equity Ratio, determined on a pro forma basis as if the Indebtedness had been incurred prior to the determination of such ratio (including a pro forma application of the net proceeds therefrom), is a minimum of 25.00%.

For purposes of this Section 7.02:

(a) “Value Adjusted Equity Ratio” means, on any date, the ratio of Value Adjusted Equity to Value Adjusted Total Assets.

(b) “Value Adjusted Equity” means Value Adjusted Total Assets less Total Debt.

(c) “Value Adjusted Total Assets” means an amount which is equal to the “Consolidated Total Assets” of the Company (as shown in the Company’s most recent balance sheet in accordance with IFRS), less the goodwill, patents, trademarks, licenses and all other assets of the Company which would be treated as intangible under IFRS (if any), and adjusted to reflect the market valuations of the vessels of the Company. The market value of such vessels to be determined quarterly by an Approved Broker, with or without physical inspection of the relevant vessel on the basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms as between a willing buyer and seller, on an “as is, where is” basis, free of any existing charter or other contract of employment and/or pool arrangement. All valuations shall be at the Company’s cost.

(d) “Total Debt” means, on a consolidated basis, the aggregate book value of all provisions, other long term liabilities and current liabilities of the Company.

(e) “Indebtedness” means any indebtedness for or in respect of:

	
  

	
(i)

	
moneys borrowed and debit balances at bank or other financial institutions;

	
  

	
(ii)

	
any acceptance under any acceptance credit or bill discounting facility (or dematerialized equivalent);

 

 

  

42

  

 

	
  

	
(iii)

	
any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

	
  

	
(iv)

	
the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with IFRS, be treated as a finance or capital lease;

	
  

	
(v)

	
receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

	
  

	
(vi)

	
any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing or otherwise classified as borrowings under IFRS;

	
  

	
(vii)

	
any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account);

	
  

	
(viii)

	
any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and

	
  

	
(ix)

	
without double counting, the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in clauses (i) to (viii) above

(f) “Approved Brokers” means Arrow Shipbroking Group, Fearnley Shipbrokers AS, Sealeague AS and R.S. Platou AS and such other brokers as approved by the Company from time to time, and an “Approved Broker” means any of them.

(g) “IFRS” means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements and in effect on the date hereof.

ARTICLE 8

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

Section 8.01 Issuer May Consolidate, etc., on Certain Terms.

The Company shall not consolidate with, enter into a binding share exchange with, or merge with or  into, any other Person in a transaction in which it is not the surviving entity, or sell, assign, convey, transfer or lease or otherwise dispose of all or substantially all of its properties and assets to any Person (a “successor person”), unless (i) it complies with the requirements of Article 5 of the Base Indenture which, for the avoidance of doubt, requires the performance and observance of every covenant of the Indenture, including providing for the conversion rights set forth under Article 6 of this Supplemental Indenture, and (ii) the successor person is a corporation organized and validly existing under the laws of the Marshall Islands, the United States, any state of the United States or the District of Columbia.

ARTICLE 9

DEFAULT AND REMEDIES

Section 9.01 Limitations on Suits.

 

 

  

43

  

 

The limitations on suits set forth in Section 6.07 of the Base Indenture shall also not apply to actions for the conversion of Securities.

Section 9.02 Unconditional Right of Holders to Convert.

In addition to the unconditional rights set forth in Section 6.08 of the Base Indenture, and notwithstanding any other provision in the Indenture, the Holder of any Security shall have the right, which is absolute and unconditional and may not be impaired or affected without the consent of the Holder, to convert their Securities in accordance with the terms of the Indenture and to bring suit for the enforcement of their right to convert.

Section 9.03 Waiver of Default and Events of Default.

In addition to Section 6.13 of the Base Indenture, consent of each Holder is required to waive any default or Event of Default resulting from the failure by the Company to deliver cash, shares of Common Stock, or a combination thereof, as the case may be, as required upon a conversion of the Securities.

ARTICLE 10

SATISFACTION AND DISCHARGE

Article 8 of the Base Indenture does not apply and is superseded in its entirety by the provisions of this Article.

Section 10.01 Satisfaction and Discharge.

This Indenture shall cease to be of further effect, and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

	  	
(i)

	
all Securities theretofore authenticated and delivered (other than (1) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.08 of the Base Indenture and (2) Securities for whose payment money has theretofore been deposited in trust and thereafter repaid to the Company as provided in Section 10.03) have been delivered to the Registrar for cancellation; or

 

	  	
(ii)

	
the Company has deposited or caused to be deposited with the Paying Agent, or delivered or caused to be delivered to the Holders, as applicable, after the Securities have become due and payable, whether at the Final Maturity Date, any Fundamental Change Purchase Date or upon Conversion or delivery of a Redemption Notice or otherwise (or will become due and payable at the Final Maturity Date within one year), cash or shares of Common Stock, if any (solely to satisfy outstanding conversions, if applicable), sufficient to pay all of the outstanding Securities and all other sums payable hereunder by the Company, and the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.07 of the Base Indenture, of the Company to the Holders under Article 6 of this Supplemental Indenture and of the Paying Agent, Registrar and authenticating agent under Section 7.01(h) of the Base Indenture shall survive.

 

 

  

44

  

 

Section 10.02 Application of Trust Money.

Subject to the provisions of Section 10.03, the Paying Agent shall hold in trust, for the benefit of the Holders of Securities, all money deposited with it pursuant to Section 10.01(b) with respect to Securities and shall apply the deposited money in accordance with this Indenture and the Securities to the payment of the principal of, and any interest on, the Securities.

Section 10.03 Repayment to Company.

The Paying Agent shall promptly pay to the Company upon request any excess money (i) deposited with them pursuant to Section 10.01(b) and (ii) held by them at any time.

The Paying Agent shall pay to the Company upon request any money held by them for the payment of principal or interest that remains unclaimed for two years after a right to such money has matured; provided, however, that the Paying Agent, before being required to make any such payment, may at the expense of the Company cause to be mailed to each Holder entitled to such money notice that such money remains unclaimed and that after a date specified therein, which shall be at least 30 days from the date of such mailing, any unclaimed balance of such money then remaining will be repaid to the Company. After payment to the Company, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

Section 10.04 Reinstatement.

If the Paying Agent is unable to apply any money in accordance with Section 10.02 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 10.01(b) until such time as the Paying Agent is permitted to apply all such money in accordance with Section 10.02; provided, however, that, if the Company has made any payment of the principal of, or interest on, any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive any such payment from the money held by the Paying Agent.

ARTICLE 11

MISCELLANEOUS PROVISIONS

Section 11.01 Scope of Supplemental Indenture.

The changes, modifications and supplements to the Base Indenture effected by this Supplemental Indenture shall only be applicable with respect to, and govern the terms of, the Securities and shall not apply to any other Securities that may be issued by the Company under the Base Indenture.

Section 11.02 Adoption, Ratification and Confirmation.

The Base Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. The provisions of this Supplemental Indenture shall, subject to the terms hereof, supersede the Base Indenture to the extent the Base Indenture is inconsistent herewith.

 

 

  

45

  

 

Section 11.03 New York Law to Govern.

For the avoidance of doubt, Section 10.11 of the Base Indenture (Governing Laws and Submission to Jurisdiction) applies to the Indenture, which includes this Supplemental Indenture and the Base Indenture.

Section 11.04 Notices.

Notices may be provided to the Conversion Agent in the same manner, and at the same address as the Paying Agent and Registrar as specified in Section 12.02 of the Base Indenture.

Section 11.05 Officers’ Certificates.

The officers’ certificate required by Section 4.04 of the Base Indenture shall be an Officers’ Certificate as defined in the Base Indenture.

Section 11.06 Counterparts.

This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

ARTICLE 12

SUPPLEMENTAL INDENTURES

Section 12.01 Without Consent of Holders.

In addition to those matters set forth in Section 9.03 of the Base Indenture, without the consent of each Securityholder affected, an amendment or waiver may not:

(a) modify the provisions with respect to the purchase right of Holders pursuant to Article 4 upon a Fundamental Change in a manner adverse to Holders;

(b) adversely affect the rights of Holders to convert Securities other than as provided for under Article 6 of this Supplemental Indenture; or

(c) modify any provision with respect to Additional Tax Amounts.

ARTICLE 13

SINKING FUND

Section 13.01 Sinking FundThere is no sinking fund for the Securities.

[Remainder of this page intentionally left blank]

 

 

  

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

 

	 	DHT HOLDINGS, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Eirik Ubøe	 
	 	 	Name:    	Eirik Ubøe	 
	 	 	Title: 	Chief Financial Officer	 
	 	 	 	 

 

	 	U.S. NATIONAL ASSOCIATION, as Trustee, Registrar, Paying Agent and Conversion Agent	 
	 	 	 	 
	
 

	
By: 

	/s/ Daniel Boyers	 
	 	 	Name:    	Daniel Boyers	 
	 	 	Title: 	Vice President	 
	 	 	 	 

 

 

[Signature Page to Supplemental Indenture]

 

  

47

  

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

[Global Securities Legend]

THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.04 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.04(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.06 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY, UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (570 WASHINGTON BOULEVARD, JERSEY CITY, NEW JERSEY 07310) (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

[Private Placement Legend]

THIS SECURITY AND THE COMMON STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND MAY NOT BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF RULE 144A NOTES AND IAI NOTES: ONE YEAR AFTER THE ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD AS IS PERMITTED UNDER THE SECURITIES ACT] [IN THE CASE OF REGULATION S NOTES: 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE DATE ON WHICH THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) WAS FIRST OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN RULE 902 OF REGULATION S) IN RELIANCE ON REGULATION S], ONLY (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT

 

 

  

A-1

  

 

 

PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT (E) TO AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’ WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

[Regulation S Global Securities Legend]

BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT.

 

 

  

A-2

  

 

DHT HOLDINGS, INC.

	
 

CUSIP: [                   ]

 

	
 

No.

 

4.5% CONVERTIBLE SENIOR NOTES DUE OCTOBER 1, 2019

DHT Holdings, Inc., a Company organized in the Marshall Islands (the “Company”, which term shall include any successor corporation under the Indenture referred to on the reverse hereof), promises to pay to [Cede & Co.] (1), or registered assigns, the principal sum of ______________ dollars ($_____________ ) on October 1, 2019 or such greater or lesser amount as is indicated on the Schedule of Exchanges of Interests in the Global Securities on the other side of this Security, and any Additional Tax Amounts payable thereon.

This Security is convertible as specified on the other side of this Security. Additional provisions of this Security are set forth on the other side of this Security.

[Signature Page Follows]

 

 

  

A-3

  

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed on the date written below.

  

	 	DHT HOLDINGS, INC.	 
	 	 	 	 
	
  

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

  

	 	 	 
	 	 	 	 
	
  

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

 

 

Trustee’s Certificate of Authentication: This is one of the Securities referred to in the within-mentioned Indenture.

 

	 U.S. BANK NATIONAL ASSOCIATION,	 	 	 	 
	 as Trustee	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 By:	
 

	 	 	
 

	 
	 	
Authorized Signatory

	 	 	 	 
	 	
Dated: [   ], 2014

	 	 	 	 
	
 

	 	 	
 

	 
	
 

	 	 	
 

	 

 

  

A-4

  

[FORM OF REVERSE OF SECURITY]

DHT HOLDINGS, INC.

4.5% CONVERTIBLE SENIOR NOTES DUE 2019

1. INTEREST AMOUNTS

DHT Holdings, Inc., a company organized in the Marshall Islands (the “Company,” which term shall include any successor corporation under the Indenture hereinafter referred to), will pay interest at a rate of 4.5% per annum, on the principal amount of this Security payable as provided in the Indenture, together with any additional interest required to be paid under Section 6.02(b) of the Base Indenture, any Additional Tax Amounts thereon and any other additional interest required to be paid pursuant to Section 7.07 of the Securities Purchase Agreement.

2. METHOD OF PAYMENT

The Company shall pay any interest on this Security to the person who is the Holder of this Security at the close of business on March 15 or September 15, as the case may be, next preceding the related Interest Payment Date. The Holder must surrender this Security to a Paying Agent to collect payment of principal. Interest on the Security will be paid at a rate of 4.5% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, or if any such day is not a Business Day, the immediately following Business Day, commencing April 1, 2015. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months. In the event of the maturity, conversion or purchase of the Security by the Company at the option of the Holder, interest shall cease to accrue on the Security. However, the Company will pay interest on the maturity date to a Holder of record of the Security on the record date immediately preceding the stated maturity date regardless of whether such Holder converts the Security.

The Company will make all payments in respect of a Global Security registered in the name of the Depository or its nominee to the Depository or its nominee, as the case may be, by wire transfer of immediately available funds to the account of the Depository or its nominee. The Company will make all payments in respect of a Definitive Security (including principal and interest) in U.S. dollars at the office of the Trustee. At the Company’s option, the Company may make such payments by mailing a check to the registered address of each Holder thereof as such address shall appear on the register or, if requested by a Holder of more than $1,000,000 in aggregate principal amount of Securities, by wire transfer of immediately available funds to the account specified by such Holder.

3. PAYING AGENT, REGISTRAR AND CONVERSION AGENT

Initially, U.S. Bank National Association will act as Paying Agent, Registrar and Conversion Agent. The Company may appoint and change any Paying Agent, Conversion Agent or Registrar without notice, other than notice to the Trustee; provided that the Company will maintain at least one Paying Agent in the United States of America. The Company or any of its Subsidiaries may, subject to certain limitations set forth in the Indenture, act as Paying Agent or Registrar.

4. INDENTURE, LIMITATIONS

This Security is one of a duly authorized issue of Securities of the Company designated as its 4.5% Convertible Senior Notes due 2019 (the “Securities”), issued under an Indenture, dated as of September 15, 2014 (together with the supplemental indenture dated September 15, 2014 and any other supplemental indentures thereto, the “Indenture”), between the Company and the Trustee. The terms of this Security include those stated in the Indenture and those required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture. This Security is subject to all such terms, and the Holder of this Security is referred to the Indenture and said Act for a statement of them.

 

 

  

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The Securities are senior unsecured obligations of the Company limited, except as set forth in the Indenture, to $150,000,000 aggregate principal amount. The Indenture does not limit other debt of the Company or any of its Subsidiaries.

5. REDEMPTION

At any time after October 1, 2017, but prior to the Final Maturity Date, the Company shall be entitled to redeem the Securities at its option, in whole or in part, provided that the Closing Sale Price of the Company’s Common Stock for at least 20 Trading Days (whether or not consecutive) during the period of 30 consecutive Trading Days ending on the Trading Day immediately prior to the date of the Redemption Notice exceeds 130% of the applicable Conversion Price for the Securities on each applicable Trading Day. The Redemption Price for the Securities to be redeemed on any Redemption Date will equal (a) 100% of the principal amount of the Securities being redeemed plus (b) accrued and unpaid interest (including additional interest), if any, to, but excluding, the Redemption Date, unless the Redemption Date falls after a Record Date but on or prior to the immediately succeeding Interest Payment Date, in which case the Company shall instead pay the full amount of accrued and unpaid interest, including any additional interest, to the Holder of record as of the close of business on such Record Date. If Securities are redeemed on a date that is after a Record Date for the payment of interest and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest will not be paid to the Holder of Securities being redeemed, and instead the full amount of the relevant interest payment will be paid on such Interest Payment Date to the Holder of record on such Record Date.

6. PURCHASE OF SECURITIES AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE

At the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase all or any part specified by the Holder (so long as the principal amount of such part is $1,000 or an integral multiple of $1,000 in excess thereof) of the Securities held by such Holder on a date, determined by the Company in its sole discretion, that is not less than 20 Business Days and not more than 30 Business Days after the occurrence of a Fundamental Change, at a purchase price equal to 100% of the principal amount thereof, together with any accrued interest up to, but excluding, the Fundamental Change Purchase Date, unless the Fundamental Change Purchase Date is after a Record Date and on or prior to the related Interest Payment Date, in which case interest accrued to the Interest Payment Date will be paid to Holders of the Securities as of the preceding Record Date and the Fundamental Change Purchase Price payable to any Holder surrendering such Holder’s Security for purchase pursuant to Article 3 of the Indenture shall be equal to the principal amount of Securities subject to purchase and will not include any accrued and unpaid interest. The Fundamental Change Purchase Price shall be payable in cash. The Holder shall have the right to withdraw any Fundamental Change Purchase Notice (in whole or in a portion thereof that is $1,000 or an integral multiple of $1,000 in excess thereof) at any time prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the Fundamental Change Purchase Date by delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of the Indenture.

7. CONVERSION

A Holder of a Security may convert the principal amount of such Security (or any portion thereof equal to $1,000 or any integral multiple of $1,000 in excess thereof) into shares of Common Stock at any time prior to the close of business on October 1, 2019, subject to the conditions, if any, set forth in Section 6.01 of the Supplemental Indenture; provided, however, that, if the Security is subject to purchase upon a Fundamental Change, the conversion right will terminate at the close of business on the Business Day immediately preceding the Fundamental Change Purchase Date for such Security or such earlier date as the Holder presents such Security for purchase (unless the Company shall default in making the Fundamental Change Purchase Price when due, in which case the conversion right shall terminate at the close of business on the date such default is cured and such Security is purchased).

 

 

  

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The initial Conversion Price is $8.125 per share of Common Stock, and the initial Conversion Rate is 123.0769 shares of Common Stock, in each case subject to adjustment under certain circumstances as provided in the Indenture. No fractional shares will be issued upon conversion; in lieu thereof, the Company will pay cash in an amount determined by multiplying the Closing Sale Price of a full share of Common Stock on the last Trading Day prior to the Conversion Date by the fractional amount and rounding the product to the nearest whole cent. Whether fractional shares are issuable upon a conversion will be determined on the basis of the total number of Securities that the Holder is then converting into cash and Common Stock, if any, and the aggregate number of shares, if any, of Common Stock issuable upon such conversion.

To convert a Security, a Holder must (a) complete and manually sign the conversion notice set forth below and deliver such notice to a Conversion Agent, (b) surrender the Security to a Conversion Agent, (c) furnish appropriate endorsements and transfer documents if required by the Registrar or the Conversion Agent and (d) pay any transfer or similar tax, if required. A Holder may convert a portion of a Security equal to $1,000 or any integral multiple of $1,000 in excess thereof. In the case of a Security held by the Depository, such conversion shall be done in accordance with the applicable rules and procedures of the Depository.

A Security in respect of which a Holder had delivered a Fundamental Change Purchase Notice exercising the option of such Holder to require the Company to purchase such Security may be converted only if the Fundamental Change Purchase Notice is withdrawn in accordance with the terms of the Indenture.

8. DENOMINATIONS, TRANSFER, EXCHANGE

The Securities are in registered form, without coupons, in denominations of $1,000 and integral multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes or other governmental charges that may be imposed in relation thereto by law or permitted by the Indenture.

9. PERSONS DEEMED OWNERS

The Holder of a Security may be treated as the owner of it for all purposes.

10. UNCLAIMED MONEY

If money for the payment of principal, or interest, if any, remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company at its written request, subject to applicable unclaimed property law. After that, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

11. AMENDMENT, SUPPLEMENT AND WAIVER

Subject to certain exceptions set forth in the Indenture, the Securities and the Indenture may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding, and an existing default or Event of Default with respect to the Securities and its consequence or compliance with any provision of the Securities or the Indenture may be waived in a particular instance with the consent of the Holders of a majority in aggregate principal amount of the Securities then outstanding. Without the consent of or notice to any Holder, the Company and the Trustee may amend or supplement the Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency or make any other change that does not adversely affect the rights of any Holder.

 

 

  

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12. CALCULATIONS IN RESPECT OF SECURITIES

Except to the extent provided therein, the Company will be responsible for making all calculations called for under the Indenture and the Securities. These calculations include, but are not limited to, determinations of the Closing Sale Price of the Common Stock, adjustments to the Conversion Price, any accrued interest payable on the Securities, the Conversion Price and the Conversion Rate. The Company will make these calculations in good faith and, absent manifest error, the calculations will be final and binding on Holders of the Securities. The Company will provide to each of the Trustee, the Paying Agent and the Conversion Agent a schedule of its calculations, and the Trustee, the Paying Agent and the Conversion Agent are entitled to rely conclusively upon the accuracy of such calculations without independent verification. The Trustee will forward the Company’s calculations to any Holder of the Securities upon the request of such Holder.

13. SUCCESSOR ENTITY

When a successor corporation assumes all the obligations of its predecessor under the Securities and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor corporation (except in certain circumstances specified in the Indenture) shall be released from those obligations.

14. DEFAULTS AND REMEDIES

Under the Indenture, an “Event of Default” with respect to Securities shall occur if:

(a) the Company defaults in the payment of any principal of any Security at Maturity (including, following a Fundamental Change), including any Additional Tax Amounts (if any) thereon;

(b) the Company defaults in the payment of any interest on any Security, including any Additional Tax Amounts (if any) thereon, when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent that is not an affiliate of the Company prior to the expiration of such period of 30 days);

(c) the Company fails to pay the cash and deliver the shares of Common Stock, if any, representing the Conversion Obligation (including any Additional Shares and any Additional Tax Amounts (if any) thereon) upon conversion of any Security within the time period required by the provisions of this Indenture;

(d) the Company fails to perform or comply with any of its other covenants or agreements contained in the Securities or in the Indenture (other than a covenant or agreement a default in whose performance or whose breach is specifically dealt with in clauses (a), (b) or (c) of this definition) and the default continues for 60 days after notice is given as specified below;

(e) any indebtedness under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company or any Subsidiary or under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by, or any other payment obligation of, the Company or any Subsidiary with a principal amount then, individually or in the aggregate, outstanding in excess of $30,000,000, whether such indebtedness now exists or shall hereafter be created, is not paid at final Maturity or when otherwise due or is accelerated, and such indebtedness is not discharged, or such default in payment or acceleration is not cured or rescinded, within a period of 30 days after there shall have been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the outstanding Securities of that Series a written notice specifying such default and requiring the Company to cause such indebtedness to be discharged or cause such default to be cured or waived or such acceleration to be rescinded or annulled and stating that such notice is a “Notice of Default” hereunder; provided that a payment obligation (other than indebtedness under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company or any Subsidiary or under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company or any Subsidiary) shall not be deemed to have matured, come due, or been accelerated to the extent that it is being disputed by the relevant obligor or obligors in good faith;

 

 

  

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(f) the Company or any Subsidiary fails to pay one or more final and non-appealable judgments entered by a court or courts of competent jurisdiction, the aggregate uninsured or unbonded portion of which is in excess of $50,000,000, if the judgments are not paid, discharged, waived or stayed within 30 days;

(g) the Company defaults in the payment of the purchase price of any Security when the same becomes due and payable, including any Additional Tax Amounts (if any) thereon;

(h) the Company fails to provide a Fundamental Change Purchase Notice when required by Section 4.01 of the Supplemental Indenture;

(i) the Company or any Subsidiary of the Company, pursuant to or within the meaning of any Bankruptcy Law: (1) commences a voluntary case or proceeding; (2) consents to the entry of an order for relief against it in an involuntary case or proceeding; (3) consents to the appointment of a Custodian of it or for all or substantially all of its property; or (4) makes a general assignment for the benefit of its creditors; or (5) or generally is unable to pay its debts as the same become due; or

(j) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (i) is for relief against the Company or any of its Subsidiaries in an involuntary case or proceeding; (ii) appoints a Custodian of the Company or any of its Subsidiaries for all or substantially all of the property of the Company or any such Subsidiary; or (iii) orders the liquidation of the Company or any of its Subsidiaries; and the case of each of clause (i), (ii) and (iii), the order or decree remains unstayed and in effect for 60 consecutive days.

A default under clause (d) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding notify the Company and the Trustee, in writing of the default, and the Company does not cure the default within 60 days after receipt of such notice. If an Event of Default (other than an Event of Default specified in clause (i) or (j) above) occurs and is continuing with respect to any Securities, then in every such case, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding may, by notice to the Company and the Trustee, declare all unpaid principal of, and accrued and unpaid interest on to the date of acceleration, the Securities then outstanding (if not then due and payable) to be due and payable upon any such declaration, and the same shall become and be immediately due and payable. If an Event of Default specified in clause (i) or (j) above occurs, all unpaid principal of the Securities then outstanding, and all accrued and unpaid interest thereon to the date of acceleration, shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

 

 

  

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Holders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of principal or any interest) if it determines that withholding notice is in their interests. The Company is required to file periodic reports with the Trustee as to the absence of default.

Under the terms of the Indenture, at the election of the Company in its sole discretion, the sole remedy for an Event of Default relating to the failure to comply with Section 4.02 of the Base Indenture, and for any failure to comply with the requirements of Section 314(a)(1) of the TIA, will consist, for the 180 days after the occurrence of such an Event of Default, exclusively of the right to receive additional interest on the Securities at a rate equal to 0.50% per annum of the aggregate principal amount of the Securities then outstanding up to, but not including, the 181st day thereafter (or, if applicable, the earlier date on which the Event of Default relating to Section 4.02 of the Base Indenture or Section 314(a)(1) of the TIA is cured or waived). Any such additional interest will be paid and calculated in the manner set forth in the Indenture.

15. TRUSTEE DEALINGS WITH THE COMPANY

U.S. Bank National Association, the Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from and perform services for the Company or an Affiliate of the Company and may otherwise deal with the Company or an Affiliate of the Company, as if it were not the Trustee.

16. NO RECOURSE AGAINST OTHERS

A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. The Holder of this Security by accepting this Security waives and releases all such liability. The waiver and release are part of the consideration for the issuance of this Security.

17. AUTHENTICATION

This Security shall not be valid until the Trustee or an authenticating agent manually signs the certificate of authentication on the other side of this Security.

18. ABBREVIATIONS AND DEFINITIONS

Customary abbreviations may be used in the name of the Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and UGMA (= Uniform Gifts to Minors Act).

All terms defined in the Indenture and used in this Security but not specifically defined herein are used herein as so defined.

19. INDENTURE TO CONTROL; GOVERNING LAW

In the case of any conflict between the provisions of this Security and the Indenture, the provisions of the Indenture shall control. This Security shall be governed by, and construed in accordance with, the laws of the State of New York.

 

 

  

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The Company will furnish to any Holder, upon written request and without charge, a copy of the Indenture. Requests may be made to the address of the Company set forth in Section 10.02 of the Base Indenture.

 

 

  

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ASSIGNMENT FORM

For value received ____________________________________ hereby sell(s), assign(s) and transfer(s) unto _____________________ (Please insert social security or Taxpayer Identification Number of assignee) the within Security, and hereby irrevocably constitutes and appoints attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises.

In connection with any transfer of the within Security occurring prior to the Resale Restriction

Termination Date, as defined in the Indenture governing such Security, the undersigned confirms that such Security is being transferred:

□ To DHT Holdings, Inc. or a subsidiary thereof; or

□ Pursuant to a registration statement that has become or been declared effective under the

Securities Act of 1933, as amended; or

□ To a qualified institutional buyer pursuant to and in compliance with Rule 144A under

the Securities Act of 1933, as amended; or

□ Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as

amended, or any other available exemption from the registration requirements of the

Securities Act of 1933, as amended.

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

	  	  
	  	
(Insert assignee’s soc. sec. or tax I.D. no.)

	  	
(Print or type assignee’s name, address and zip code)

	  	
and irrevocably appoint

	  	
agent to transfer this Security on the books of the Company. The agent may substitute another to act for him or her.

	  	  
	  	  	  	
Your Signature:

	  	  
	
Date:

	  	  	  
	  	  	  	
(Sign exactly as your name appears on the other side of this Security)

	  	  
	  	
*Signature guaranteed by:

	
 

	  
	
By:

	  	  	  

_______________________

	  	
 

* The signature must be guaranteed by an institution that is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

 

 

 

  

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CONVERSION NOTICE*

	  	
To convert this Security into Common Stock of the Company, check the box: o

	  	
To convert only part of this Security, state the principal amount to be converted (must be $1,000 or a integral multiple of $1,000): $ _______________________.

	  	
If you want the stock certificate made out in another person’s name, fill in the form below:

	  	
(Insert assignee’s soc. sec. or tax I.D. no.)

	  	
(Print or type assignee’s name, address and zip code)

	  	  
	  	  	  	
Your Signature:

	
Date:

	  
	  	  	  	  
	  	  	  	
(Sign exactly as your name appears on the other side of this Security)

	  	  
	  	
**Signature guaranteed by:

	  	  
	
 

	  
	By:	  	  	  
	 	 	 	 

____________________

	  	
 

*The Conversion Notice must be sent to U.S. Bank Corporate Trust Services, Attention: Conversions, 60 Livingston Ave., St. Paul, MN 55107

 

	  	
 

** The signature must be guaranteed by an institution that is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

 

 

 

  

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OPTION TO ELECT REPURCHASE UPON A FUNDAMENTAL CHANGE

To: DHT Holdings, Inc.

The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a notice from DHT Holdings, Inc. (the “Company”) as to the occurrence of a Fundamental Change with respect to the Company and requests and instructs the Company to redeem the entire principal amount of this Security, or the portion thereof (which is $1,000 or an integral multiple of $1,000 in excess thereof) below designated, in accordance with the terms of the Indenture referred to in this Security at a purchase price equal to the Fundamental Change Purchase Price, payable in Cash.

	
Dated:

	  	  
	  	  	  	  
	  	  	  
	  	  	  
	  	  	
Signature(s) must be guaranteed by a qualified guarantor institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934.

	  	  	
Signature Guaranty

	  	  	  
	
Principal amount to be redeemed

(in an integral multiple of $1,000, if less than all):

	  	  
	  	  	  	  

NOTICE: The signature to the foregoing Election must correspond to the Name as written upon the face of this Security in every particular, without alteration or any change whatsoever.

 

 

  

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[To be inserted for a Global Security]

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

The following exchanges of a part of this Global Security for an interest in another Global Security or for a Definitive Security, or exchanges of a part of another Global Security or Definitive Security for an interest in this Global Security, have been made:

	
Date of Exchange

	
Amount of Decrease in Principal

Amount at Maturity

of this Global Security

	
Amount of Increase in Principal

Amount at Maturity

of this Global Security

	
 

Principal Amount at Maturity of

this Global Security Following such

decrease (or increase)

	
Signature of Authorized Signatory

of Trustee or Custodian

 

 

  

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EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

DHT Holdings, Inc.

c/o DHT Management AS

Haakon VIIs gt. 1, 6th Floor

P.O. Box 2039, 0125 Oslo, Norway

Fax:  +47 2311 5081

Attention:  Chief Financial Officer

U.S. Bank National Association

425 Walnut Street

CN-OH-W6CT

Cincinnati, OH 45202

Attention: Dan Boyers

Re:  4.5% Convertible Senior Notes due 2019

Reference is hereby made to the Indenture, dated as of September 15, 2014 (the “Base Indenture”), among DHT Holdings, Inc., a company organized under the laws of the Marshall Islands (the “Company”), and U.S. Bank National Association, as Trustee, as supplemented by the First Supplemental Indenture, dated as of September 15, 2014 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

_________________________(the “Transferor”) owns and proposes to transfer the [Security][Securities] or interest in such [Security][Securities] specified in Annex A hereto, in the principal amount of

$____________________ in such [Security][Securities] or interests (the “Transfer”), to (the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

o 1.           Check if Transferee will take delivery of a beneficial interest in the 144A Global Security or a Definitive Security pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Security is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or Definitive Security for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and such Transfer is in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Security and/or the Definitive Security and in the Indenture and the Securities Act.

 

 

  

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o 2.           Check if Transferee will take delivery of a beneficial interest in a Legended Regulation S Global Security, or a Definitive Security pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Legended Regulation S Global Security and/or the Definitive Security and in the Indenture and the Securities Act.

o 3.           Check and complete if Transferee will take delivery of a beneficial interest in the IAI Global Security or an Unrestricted Global Security pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Securities and Restricted Definitive Securities and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one):

o (a)           such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act; or

 

o (b)   such Transfer is being effected to the Company or a subsidiary thereof; or

 

o (c)           such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act; or

o (d)           such Transfer is being effected to an Institutional Accredited Investor and pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to beneficial interests in an Restricted Global Security or Restricted Definitive Securities and the requirements of the exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in the form of Exhibit D to the Indenture and (2) if such Transfer is in respect of a principal amount of Securities at the time of transfer of less than $250,000, an opinion of counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached to this certification), to the effect that such Transfer is in compliance with the Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the IAI Global Security or the Restricted Definitive Securities and in the Indenture and the Securities Act.

 

 

  

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o 4.           Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global Security or of an Unrestricted Definitive Security.

o (a)         Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities, on Restricted Definitive Securities and in the Indenture.

o (b)         Check if Transfer is pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities, on Restricted Definitive Securities and in the Indenture.

o (c)           Check if Transfer is pursuant to other exemption. (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities or Restricted Definitive Securities and in the Indenture.

 

 

  

B-3

  

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

                                          

	 	Dated_____________________	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	       [Insert Name of Transferor]	 
	 	 	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

  

B-4

  

 

ANNEX A TO CERTIFICATE OF TRANSFER

	
  

	
1.

	
The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 o	
 

	
(a)

	
a beneficial interest in the:

 

	
  

	
(i)

	

144A Global Security (CUSIP______________); or

 

	
  

	
(ii)

	

Regulation S Global Security (CUSIP________); or

 

	
  

	
(iii)

	
IAI Global Security (CUSIP______________ ); or

 

	o	
  

	
(b)

	

a Restricted Definitive Security.

 

	
  

	
2.

	
After the Transfer the Transferee will hold:

[CHECK ONE]

 

	o	
  

	
(a)

	
a beneficial interest in the:

 

	
  

	
(i)

	

(i) 144A Global Security (CUSIP______________); or

 

	
  

	
(ii)

	

(ii) Regulation S Global Security (CUSIP________); or

 

	
  

	
(iii)

	
(iii) Unrestricted Global Security (CUSIP______________ ); or

 

	
  

	
(iv)

	

(i) IAI Global Security (CUSIP______________); or

 

	o	
  

	
(b)

	

a Restricted Definitive Security; or

 

	o	
  

	
(c)

	

an Unrestricted Definitive Security, in accordance with the terms of the Indenture.

 

  

B-5

  

 

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

DHT Holdings, Inc.

c/o DHT Management AS

Haakon VIIs gt. 1, 6th Floor

P.O. Box 2039, 0125 Oslo, Norway

Fax:  +47 2311 5081

Attention:  Chief Financial Officer

U.S. Bank National Association

425 Walnut Street

CN-OH-W6CT

Cincinnati, OH 45202

Attention: Dan Boyers

Re:  4.5% Convertible Senior Notes due 2019

Reference is hereby made to the Indenture, dated as of September 15, 2014 (the “Base Indenture”), among DHT Holdings, Inc., a company organized under the laws of the Marshall Islands (the “Company”), and U.S. Bank National Association, as Trustee, as supplemented by the First Supplemental Indenture, dated as of September 15, 2014 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

_____________________(the “Owner”) owns and proposes to exchange the [Security][Securities] or interest in such [Security][Securities] specified herein, in the principal amount of

$__________________________in such [Security][Securities] or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

1.           Exchange of Restricted Definitive Securities or Beneficial Interests in a Restricted Global Security for Unrestricted Definitive Securities or Beneficial Interests in an Unrestricted Global Security

o    (a)            Check if Exchange is from beneficial interest in a Restricted Global Security to beneficial interest in an Unrestricted Global Security. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Security for a beneficial interest in an Unrestricted Global Security in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Securities and pursuant to and in accordance with the United States Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Security is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

 

 

  

C-1

  

 

 

(ii)           o Check if Exchange is from beneficial interest in a Restricted Global Security to Unrestricted Definitive Security. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Security for an Unrestricted Definitive Security, the Owner hereby certifies (i) the Definitive Security is being acquired for the Owner’s own account without transfer, such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Securities and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Security is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

o (b)           Check if Exchange is from Restricted Definitive Security to beneficial interest in an Unrestricted Global Security. In connection with the Owner’s Exchange of a Restricted Definitive Security for a beneficial interest in an Unrestricted Global Security, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Securities and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

 

o (c)           Check if Exchange is from Restricted Definitive Security to Unrestricted Definitive Security. In connection with the Owner’s Exchange of a Restricted Definitive Security for an Unrestricted Definitive Security, the Owner hereby certifies (i) the Unrestricted Definitive Security is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Securities and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Security is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

2.           Exchange of Restricted Definitive Securities or Beneficial Interests in Restricted Global Securities for Restricted Definitive Securities or Beneficial Interests in Restricted Global Securities

o (a)        Check if Exchange is from beneficial interest in a Restricted Global Security to Restricted Definitive Security. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Security for a Restricted Definitive Security with an equal principal amount, the Owner hereby certifies that the Restricted Definitive Security is being acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Security issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Security and in the Indenture and the Securities Act.

 

 

  

C-2

  

 

o (b)        Check if Exchange is from Restricted Definitive Security to beneficial interest in a Restricted Global Security. In connection with the Exchange of the Owner’s Restricted Definitive Security for a beneficial interest in the [CHECK ONE]:

 

	 	o	144A Global Security
	 	 	 
	 	o	Regulation S Global Security

 

with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Securities and pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Security and in the Indenture and the Securities Act.

This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

	 	Dated_____________________	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	[Insert Name of Transferor]	 
	 	 	 
	 	 	 
	 	 	 	 
	
  

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

C-3

 

 

EXHIBIT D

FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

DHT Holdings, Inc.

c/o DHT Management AS

Haakon VIIs gt. 1, 6th Floor

P.O. Box 2039, 0125 Oslo, Norway

Fax:  +47 2311 5081

Attention:  Chief Financial Officer

U.S. Bank National Association

425 Walnut Street

CN-OH-W6CT

Cincinnati, OH 45202

Attention: Dan Boyers

Re:  4.5% Convertible Senior Notes due 2019

Reference is hereby made to the Indenture, dated as of September 15, 2014 (the “Base Indenture”), among DHT Holdings, Inc., a company organized under the laws of the Marshall Islands (the “Company”), and U.S. Bank National Association, as Trustee, as supplemented by the First Supplemental Indenture, dated as of September 15, 2014 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

In connection with our proposed purchase of $____________________________ aggregate principal amount of:

(a)       ̈ a beneficial interest in a Global Security, or

(b)       ̈ a Definitive Security,

 

we confirm that:

 

1.           We understand that any subsequent transfer of the Securities or any interest therein is subject to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Securities or any interest therein except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”).

 

 

  

D-1

  

 

2.           We understand that the offer and sale of the Securities have not been registered under the Securities Act, and that the Securities and any interest therein may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell the Securities or any interest therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C) to an institutional “accredited investor” (as defined below) that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a signed letter substantially in the form of this letter and, if such transfer is in respect of a principal amount of Securities, at the time of transfer of less than $250,000, an opinion of counsel in form reasonably satisfactory to the Company to the effect that such transfer is in compliance with the Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144 under the Securities Act or (F) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any Person purchasing the Definitive Security or beneficial interest in a Global Security from us in a transaction meeting the requirements of clauses (A) through (E) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein.

3.           We understand that, on any proposed resale of the Securities or beneficial interest therein, we will be required to furnish to you and the Company such certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Securities purchased by us will bear a legend to the foregoing effect.

4.           We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Securities, and we and any accounts for which we are acting are each able to bear the economic risk of our or its investment.

5.           We are acquiring the Securities or beneficial interest therein purchased by us for our own account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion.

You and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.

	 	[Insert Name of Accredited Investor]	 
	 	 	 	 

 

 

  

D-2

  

 

 

	 	 	 
	 	 	 
	 	 	 	 
	
  

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 
	 	 	 Dated: __________________________________	 
	 	 	 	 
	 	 	 	 

 

D-3ex4-3.htm

Exhibit 4.3

 

Part I

 

	
SHIPMAN 98

SHIP MANAGEMENT AGREEMENT

 

	
1.  Date of Agreement

 

 

	
Name of vessel:                                           

	
2.  Owners (name, place of registered office and law of registry) (Cl. 1)

 

 

	
3.  Managers (name, place of registered office and law of registry) (Cl. 1)

 

	
Name

 

	
Name

 

	
Place of registered office

 

	
Place of registered office

 

	
Law of Registry

 

	
Law of Registry

 

	
4.  Day and year of Commencement of Agreement (Cl. 2)

     From the placing of observers onboard for Change of Management

	
5.  Crew Management (state “yes” or “no” as agreed) (Cl. 3.1)

     Yes

	
6.  Technical Management (state “yes” or “no” as agreed) (Cl. 3.2)

     Yes

	
7.  Commercial Management (state “yes” or “no” as agreed) (Cl. 3.3)

     No

	
8.  Insurance Arrangements (state “yes” or “no” as agreed) (Cl. 3.4)

     No

	
9.  Accounting Services (state “yes” or “no” as agreed) (Cl. 3.5)

     Yes

	
10. Sale or purchase of the Vessel (state “yes” or “no” as agreed) (Cl. 3.6)

     No

	
11. Provisions (state “yes” or “no” as agreed) (Cl. 3.7)

 

     Yes

	
12. Bunkering (state “yes” or “no” as agreed) (Cl. 3.8)

 

     No

	
13. Chartering Services Period (only to be filled in if “yes” stated in Box 7) (Cl.3.3(i))

     No

	
14. Owners’ Insurance (state alternative (i), (ii) or (iii) of Cl. 6.3)

     Yes - Cl. 6.3 (ii)

	
15. Annual Management Fee (state annual amount) (Cl. 8.1)

     

	
16. Severance Costs (state maximum amount) (Cl. 8.4(ii))

     As per CBA

	
17. Day and year of termination of Agreement (Cl. 17)

     To be mutually agreed.

	
18. Law and Arbitration (state alternative 19.1, 19.2 or 19.3; if 19.3 place of arbitration must be stated)

     19.1 London

	
19. Notice (state postal and cable address, telex and telefax number for serving notice and communication to the Owners or disponent Owners) (Cl. 20)

 

	
20.Notice (state postal and cable address, telex and telefax number for serving notice and  communication to the Managers) (Cl. 20)

 

 

	It is mutually agreed between the party stated in Box 2 and the party stated in Box 3 that this Agreement consisting of PART I and PART II as well as Annexes “A” (Details of Vessel),  “B”  (Details of crew)  “C” ( Services Fee) shall be performed subject to the conditions contained herein. In the event of a conflict of conditions, the provisions of PART I and Annexes “A”,  “B”  and “C” shall prevail over those of PART II to the extent of such conflict but no further. 

 

	
Signature(s) (Owners or disponent Owners)

	
Signature(s) (Managers

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

	
1

	 	
1.

	
Definitions

	  	
70

	 	  	
manning levels, rank, qualification and certification of

	
2

	 	  	
In this Agreement save where the context otherwise

	  	
71

	 	  	
the Crew and employment regulations including

	
3

	 	  	
requires, the following words and expressions shall have

	  	
72

	 	  	
Crew’s tax, social insurance, discipline and other

	
4

	 	  	
the meanings hereby assigned to them.

	  	
73

	 	  	
requirements;

	
5

	 	  	  	  	
74

	 	  	
(iii)

	
ensuring that all members of the Crew have passed a

	
6

	 	  	
“Owners” means the party identified in Box 2.

	  	
75

	 	  	  	
medical examination with a qualified doctor certifying

	
7

	 	  	
“Managers” means the party identified in Box 3.

	  	
76

	 	  	  	
that they are fit for the duties for which they are

	
8

	 	  	
“Vessel” means the vessel or vessels details of which are set

	  	
77

	 	  	  	
engaged and are in possession of valid medical

	
9

	 	  	
out in Annex “A” attached hereto.

	  	
78

	 	  	  	
certificates issued in accordance with appropriate flag

	
10

	 	  	
“Crew” means the Master, officers and ratings of the

	  	
79

	 	  	  	
State requirements. In the absence of applicable flag

	
11

	 	  	
numbers, rank and nationality specified in Annex “B”

	  	
80

	 	  	  	
State requirements the medical certificate shall be

	
12

	 	  	
attached hereto.

	  	
81

	 	  	  	
dated not more than three months prior to the

	
13

	 	  	
“Crew Support Costs” means all expenses of a general

	  	
82

	 	  	  	
respective Crew members leaving their country of

	
14

	 	  	
nature which are not particularly referable to any individual

	  	
83

	 	  	  	
domicile and maintained for the duration of their

	
15

	 	  	
vessel for the time being managed by the Managers and

	  	
84

	 	  	  	
service on board the Vessel;

	
16

	 	  	
which are incurred by the Managers for the purpose of

	  	
85

	 	  	
(iv)

	
ensuring that the Crew shall have a command of the

	
17

	 	  	
providing an efficient and economic management service

	  	
86

	 	  	  	
English language of a sufficient standard to enable

	
18

	 	  	
and, without prejudice to the generality of the foregoing,

	  	
87

	 	  	  	
them to perform their duties safely;

	
19

	 	  	
shall include the cost of crew standby pay, training schemes

	  	
88

	 	  	
(v)

	
arranging transportation of the Crew, including

	
20

	 	  	
for officers and ratings, cadet training schemes, sick pay,

	  	
89

	 	  	  	
repatriation;

	
21

	 	  	
study pay, recruitment and interviews.

	  	
90

	 	  	
(vi)

	
training of the Crew and supervising their efficiency;

	
22

	 	  	
“Severance Costs” means the costs which the employers are

	  	
91

	 	  	
(vii)

	
conducting union negotiations;

	
23

	 	  	
legally obliged to pay to or in respect of the Crew as a result

	  	
92

	 	  	
(viii)

	
operating the Managers’ drug and alcohol policy

	
24

	 	  	
of the early termination of any employment contract for

	  	
93

	 	  	  	
which meets the OCIMF Guidelines for Control of

	
25

	 	  	
service on the Vessel.

	  	
94

	 	  	  	
Drug & Alcohol on board the vessels.

	
26

	 	  	
“Crew Insurances” means insurances against crew risks

	  	
95

	 	  	  
	
27

	 	  	
which shall include but not be limited to death, sickness

	  	
96

	 	
 

	

3.2    Technical Management

	
28

	 	  	
repatriation, injury, shipwreck unemployment indemnity

	  	
97

	 	  	
(only applicable if agreed according to Box 6)

	
29

	 	  	
and loss of personal effects.

	  	
98

	 	  	
The Managers shall provide technical management, which

	
30

	 	  	
“Management Services” means the services specified in

	  	
99

	 	  	
includes, but is not limited to, the following functions:

	
31

	 	  	
sub-clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5

	  	
100

	 	  	
(i)

	
provision of competent personnel to supervise the

	
32

	 	  	
to 12.

	  	
101

	 	  	  	
maintenance and general efficiency of the Vessel;

	
33

	 	  	
“ISM Code” means the International Management Code for

	  	
102

	 	  	
(ii)

	
arrangement and supervision of dry dockings, repairs,

	
34

	 	  	
the Safe Operation of Ships and for Pollution Prevention as

	  	
103

	 	  	  	
alterations, the upkeep of the Vessel and handling of

	
35

	 	  	
adopted by the International Maritime Organisation (IMO)

	  	
104

	 	  	  	
Guarantee Claims and to the standards required by the

	
36

	 	  	
by resolution A.741(18) or any subsequent amendment

	  	
105

	 	  	  	
Owners provided that the Manager shall be entitled to

	
37

	 	  	
thereto.

	  	
106

	 	  	  	
incur the necessary expenditure to ensure that the

	
38

	 	  	
“STCW 95” means the International Convention on

	  	
107

	 	  	  	
Vessel will comply with the law of the flag of the

	
39

	 	  	
Standards of Training, Certification and Watchkeeping for

	  	
108

	 	  	  	
Vessel and of the places where she trades, and all

	
40

	 	  	
Seafarers, 1978, as amended in 1995 or any subsequent

	  	
109

	 	  	  	
requirements and recommendations of the

	
41

	 	  	
amendment thereto.

	  	
110

	 	  	  	
classification society;

	
42

	 	  	  	  	
111

	 	  	  	
Managers shall visit the vessel in normal operating

	
43

	 	
2.

	
Appointment of Managers

	  	
112

	 	  	  	
cycle by the responsible Superintendents or other staff

	
44

	 	  	
With effect from the day and year stated in Box 4 and

	  	
113

	 	  	  	
minimum 3 times per year, where of one visit should

	
45

	 	  	
continuing unless and until terminated as provided herein,

	  	
114

	 	  	  	
be a sailing visit. Visits in connection with dry-

	
46

	 	  	
the Owners hereby appoint the Managers and the Managers

	  	
115

	 	  	  	
dockings, extra ordinary repairs, upgrades e.g. are

	
47

	 	  	
hereby agree to act as the Managers of the Vessel.

	  	
116

	 	  	  	
limited to 25 man days per vessels budget year.

	
48

	 	  	  	  	
117

	 	  	  	
(Services exceeding 25 days see Part III):

	
49

	 	
3.

	
Basis of Agreement

	  	
118

	 	  	
(iii)

	
arrangement of the supply of necessary stores, spares

	
50

	 	  	
Subject to the terms and conditions herein provided, during

	  	
119

	 	  	  	
and lubricating oil;

	
51

	 	  	
the period of this Agreement, the Managers shall carry out

	  	
120

	 	  	
(iv)

	
appointment of surveyors and technical consultants as

	
52

	 	  	
Management Services in respect of the Vessel as agents for

	  	
121

	 	  	  	
the Managers may consider from time to time to be

	
53

	 	  	
and on behalf of the Owners. The Managers shall have

	  	
122

	 	  	  	
necessary;

	
54

	 	  	
authority to take such actions as they may from time to time

	  	
123

	 	  	
(v)

	
development, implementation and maintenance of a

	
55

	 	  	
in their absolute discretion consider being necessary to

	  	
124

	 	  	  	
Safety Management System (SMS) in accordance

	
56

	 	  	
enable them to perform this Agreement in accordance with

	  	
125

	 	  	  	
with the ISM Code (see sub-clauses 4.2).

	
57

	 	  	
sound ship management practice.

	  	
126

	 	  	
(vi)

	
notify the owners and seek “out of budget approval”

	
58

	 	  	
3.1   Crew Management

	  	
127

	 	  	  	
for any extraordinary and non-budgeted expenditure

	
59

	 	  	
(only applicable if agreed according to Box 5)

	  	
128

	 	  	  	
above US$10.000.

	
60

	 	  	
The Managers shall provide suitably qualified Crew for the

	  	
129

	 	  	
(vii)

	
arrange oil major inspections according to the owners

	
61

	 	  	
Vessel as required by the Owners in accordance with the

	  	
130

	 	  	  	
charter obligations.

	
62

	 	  	
STCW 95 requirements, provision of which includes, but is

	  	
131

	 	  	
(viii)

	
Upon termination of this agreement under clause 17,

	
63

	 	  	
not limited to, the following functions:

	  	
132

	 	  	  	
the Managers shall cooperate with the Owners new

	
64

	 	  	
(i)

	
selecting and engaging the Vessel’s Crew, including

	  	
133

	 	  	  	
managers, officers and crew and provide reasonable

	
65

	 	  	  	
payroll arrangements, pension administration, and

	  	
134

	 	  	  	
assistance to effect a smooth transition of management

	
66

	 	  	  	
insurances for the Crew other than those mentioned in

	  	
135

	 	  	  	
and crewing.

	
67

	 	  	  	
Clause 6;

	  	
136

	 	  	  
	
68

	 	  	
(ii)

	
ensuring that the applicable requirements of the law

	  	
137

	 	
 

	

3.3    Commercial Management

	
69

	 	  	  	
of the flag of the Vessel are satisfied in respect of

	  	
138

	 	  	
(only applicable if agreed according to Box 7)

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

	
139

	  	  	
The Managers shall provide the commercial operation of

	  	
209

	 	
3.6

	
Sale or Purchase of the Vessel

	
140

	  	  	
the Vessel, as required by the Owners, which includes, but

	  	
210

	 	  	
(only applicable if agreed according to Box 10)

	
141

	  	  	
is not limited to, the following functions:

	  	
211

	 	  	
The Managers shall, in accordance with the Owners’

	
142

	  	  	
(i)

	
providing chartering services in accordance with the

	  	
212

	 	  	
instructions, supervise the sale or purchase of the Vessel,

	
143

	  	  	  	
Owners’ instructions which include, but are not

	  	
213

	 	  	
including the performance of any sale or purchase

	
144

	  	  	  	
limited to, seeking and negotiating employment for

	  	
214

	 	  	
agreement, but not negotiation of the same.

	
145

	  	  	  	
the Vessel and the conclusion (including the

	  	
215

	 	  	  
	
146

	  	  	  	
execution thereof) of charter parties or other contracts

	  	
216

	 	  	
3.7    Provisions

	
147

	  	  	  	
relating to the employment of the Vessel. If such a

	  	
217

	 	  	
(only applicable if agreed according to Box 11)

	
148

	  	  	  	
contract exceeds the period stated in Box 13, consent

	  	
218

	 	  	
The Managers shall arrange for the supply of provisions.

	
149

	  	  	  	
thereto in writing shall first be obtained form the

	  	
219

	 	  	  
	
150

	  	  	  	
Owners;

	  	
220

	 	  	
3.8    Bunkering

	
151

	  	  	
(ii)

	
arranging of the proper payment to Owners or their

	  	
221

	 	  	
(only applicable if agreed according to Box 12)

	
152

	  	  	  	
nominees of all hire and/or freight revenues or other

	  	
222

	 	  	
The Managers shall arrange for the provision of bunker fuel

	
153

	  	  	  	
moneys of whatsoever nature to which Owners may

	  	
223

	 	  	
of the quality specified by the Owners as required for the

	
154

	  	  	  	
be entitled arising out of the employment of or

	  	
224

	 	  	
Vessel’s trade.

	
155

	  	  	  	
otherwise in connection with the Vessel;

	  	
225

	 	  	  
	
156

	  	  	
(iii)

	
providing voyage estimates and calculating of hire,

	  	
226

	 	
4.

	
Managers’ Obligations

	
157

	  	  	  	
freights, demurrage and/or despatch moneys due from

	  	
227

	 	  	
4.1   The Managers undertake to use their best endeavours

	
158

	  	  	  	
or due to the charterers of the Vessel;

	  	
228

	 	  	
to provide the agreed Management Services including

	
159

	  	  	
(iv)

	
issuing of voyage instructions;

	  	
229

	 	  	
meeting budget as agents for and on behalf of the Owners in

	
160

	  	  	
(v)

	
appointing agents;

	  	
230

	 	  	
accordance with sound ship management practice and to

	
161

	  	  	
(vi)

	
appointing stevedores;

	  	
231

	 	  	
protect and promote the interests of the Owners in all

	
162

	  	  	
(vii)

	
arranging surveys associated with the commercial

	  	
232

	 	  	
matters relating to the provision of services hereunder.

	
163

	  	  	  	
operation of the Vessel.

	  	
233

	 	  	
Provided, however, that the Managers in the performance of

	
164

	  	  	  	  	
234

	 	  	
their management responsibilities under this Agreement

	
165

	  	  	3.4    Insurance Arrangements	  	
235

	 	  	
shall be entitled to have regard to their overall responsibility

	
166

	  	  	
(only applicable if agreed according to Box 8)

	  	
236

	 	  	
in relation to all vessels as may from time to time be

	
167

	  	  	
The Managers shall arrange insurances in accordance with

	  	
237

	 	  	
entrusted to their management and in particular, but without

	
168

	  	  	
Clauses 6, on such terms and conditions as the Owners shall

	  	
238

	 	  	
prejudice to the generality of the foregoing, the Managers

	
169

	  	  	
have instructed or agreed, in particular regarding

	  	
239

	 	  	
shall be entitled to allocate available supplies, manpower

	
170

	  	  	
conditions, insured values, deductibles and franchises. The

	  	
240

	 	  	
and services in such manner as in the prevailing

	
171

	  	  	
Managers will co-ordinate documentation necessary to

	  	
241

	 	  	
circumstances the Managers in their absolute discretion

	
172

	  	  	
procure certification for CLC-certificate, US COFR and

	  	
242

	 	  	
consider to be fair and reasonable.

	
173

	  	  	
Canadian Oil Spill Response Agreement in respect of

	  	
243

	 	  	
4.2    Where the Managers are providing Technical

	
174

	  	  	
Vessels likely to be trading to these Geographical areas.

	  	
244

	 	  	
Management in accordance with sub-clause 3.2, they

	
175

	  	  	  	  	
245

	 	  	
shall procure that the requirements of the law of the

	
176

	  	  	3.5    Accounting Services	  	
246

	 	  	
flag of the Vessel are satisfied and they shall in

	
177

	  	  	
(only applicable if agreed according to Box 9)

	  	
247

	 	  	
particular be deemed to be the “Company” as defined

	
178

	  	  	
The Managers shall:

	  	
248

	 	  	
by the ISM Code, assuming the responsibility for the

	
179

	  	  	
(i)

	
establish an accounting system which meets the

	  	
249

	 	  	
operation of the Vessel and taking over the duties

	
180

	  	  	  	
requirements of the Owners and provide regular

	  	
250

	 	  	
and responsibilities imposed by the ISM Code when

	
181

	  	  	  	
accounting services, supply regular reports and

	  	
251

	 	  	
applicable.

	
182

	  	  	  	
records, and shall provide the Owners with the

	  	
252

	 	  	
4.3    The Managers shall maintain all relevant technical,

	
183

	  	  	  	
Managers financial service and accounting reports in

	  	
253

	 	  	
repair and and maintenance records, and provide

	
184

	  	  	  	
accordance with their usual practice and provide

	  	
254

	 	  	
owners with a quarterly vessel technical report

	
185

	  	  	  	
regular accounting services in form to be mutually

	  	
255

	 	  	
including vessel performance and speed/consumption

	
186

	  	  	  	
agreed.

	  	
256

	 	  	
monitoring.

	
187

	  	  	  	
The Manager will supply the Owners with a statement

	  	
257

	 	  	  
	
188

	  	  	  	
of Vessels Operating Costs as soon as possible and

	  	
258

	 	
5.

	
Owners’ Obligations

	
189

	  	  	  	
latest within 10 working days after the end of each

	  	
259

	 	  	
5.1    The Owners shall pay all sums due to the Managers

	
190

	  	  	  	
month together with a highlight report and a 3

	  	
260

	 	  	
punctually in accordance with the terms of this Agreement.

	
191

	  	  	  	
months forcast of expected opex cost, and further a

	  	
261

	 	  	
5.2    Where the Managers are providing Technical

	
192

	  	  	  	
quarterly financial statement including necessary

	  	
262

	 	  	
Management in accordance with sub-clause 3.2, the Owners

	
193

	  	  	  	
explanations of deviations from the budget and year

	  	
263

	 	  	
shall:

	
194

	  	  	  	
end prognosis within 10 working days.

	  	
264

	 	  	
(i)

	
procure that all officers and ratings supplied by them

	
195

	  	  	  	
Vessel budget and accounts shall always be available

	  	
265

	 	  	  	
or on their behalf comply with the requirements of

	
196

	  	  	  	
to the owners for inspection and auditing, provided

	  	
266

	 	  	  	
STCW 95;

	
197

	  	  	  	
that reasonable notice is given. Upon request any

	  	
267

	 	  	
(ii)

	
instruct such officers and ratings to obey all

	
198

	  	  	  	
invoice or supporting documentation as well as

	  	
268

	 	  	  	
reasonable orders of the Managers in connection with

	
199

	  	  	  	
purchase agreements used for vessel supplies to be

	  	
269

	 	  	  	
the operation of the Managers’ safety management

	
200

	  	  	  	
made available for the Owners.

	  	
270

	 	  	  	
system.

	
201

	  	  	  	
The Managers will supply the Owners with such other

	  	
271

	 	  	
5.3    Where the Managers are not providing Technical

	
202

	  	  	  	
financial statements and reports, that the Owners

	  	
272

	 	  	
Management in accordance with sub-clause 3.2, the Owners

	
203

	  	  	  	
may reasonably require from time to time;

	  	
273

	 	  	
shall procure that the requirements of the law of the flag of

	
204

	  	  	  	
maintain the records of all costs and expenditure

	  	
274

	 	  	
the Vessel are satisfied and that they, or such other entity as

	
205

	  	  	  	
incurred as well as data necessary or proper for the

	  	
275

	 	  	
may be appointed by them and identified to the Managers,

	
206

	  	  	  	
settlement of accounts between the parties.

	  	
276

	 	  	
shall be deemed to be the “Company” as defined by the

	
207

	  	  	  	  	
277

	 	  	
ISM Code assuming the responsibility for the operation of

	
208

	  	  	  	  	  	 	  	  

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

	
278

	 	  	
the Vessel and taking over the duties and responsibilities

	  	
346

	 	  	
fee shall be presented in the annual budget referred to in

	
279

	 	  	
imposed by the ISM Code when applicable.

	  	
347

	 	  	
sub-clause 9.1.

	
280

	 	  	  	  	
348

	 	  	
8.3    The Managers shall, at no extra cost to the Owners,

	
281

	 	
6.

	
Insurance Policies

	  	
349

	 	  	
provide their own office accommodation, office staff,

	
282

	 	  	
The Owners shall procure, whether by instructing the

	  	
350

	 	  	
facilities and stationery. Without limiting the generality of

	
283

	 	  	
Managers under sub-clause 3.4 or otherwise, that

	  	
351

	 	  	
Clause 7 the Owners shall reimburse the Managers for

	
284

	 	  	
throughout the period of this Agreement:

	  	
352

	 	  	
postage and communication expenses, travelling expenses,

	
285

	 	  	
6.1     at the Owners’ expense, the Vessel is insured for not

	  	
353

	 	  	
and other out of pocket expenses properly incurred by the

	
286

	 	  	
less than her sound market value or entered for her full

	  	
354

	 	  	
Managers in pursuance of the Management Services.

	
287

	 	  	
gross tonnage, as the case may be for:

	  	
355

	 	  	
8.4    In the event of the appointment of the Managers being

	
288

	 	  	
(i)

	
usual hull and machinery marine risks (including crew

	  	
356

	 	  	
terminated by the Owners or the Managers in accordance

	
289

	 	  	  	
negligence) and excess liabilities;

	  	
357

	 	  	
with the provisions of Clauses 17 and 18 other than by

	
290

	 	  	
(ii)

	
protection and indemnity risks (including pollution

	  	
358

	 	  	
reason of default by the Manager, or if the Vessel is lost,

	
291

	 	  	  	
risks and Crew Insurances); and

	  	
359

	 	  	
sold or otherwise disposed of, the “management fee”

	
292

	 	  	
(iii)

	
war risks (including protection and indemnity and

	  	
360

	 	  	
payable to the Managers according to the provisions of sub-

	
293

	 	  	  	
crew risks) in accordance with the best practice of

	  	
361

	 	  	
clause 8.1, shall continue to be payable in full for a further

	
294

	 	  	  	
prudent owners of vessels of a similar type to the

	  	
362

	 	  	
period of  three calendar months from the day of

	
295

	 	  	  	
Vessel, with first class insurance companies,

	  	
363

	 	  	
termination of the management contract (date of handover) .

	
296

	 	  	  	
underwriters or associations (“the Owners’

	  	
364

	 	  	
In addition, provided that the Managers provide Crew for

	
297

	 	  	  	
Insurances”);

	  	
365

	 	  	
the Vessel in accordance with sub-clause 3.1:

	
298

	 	  	6.2    all premiums and calls on the Owners’ Insurances are	  	
366

	 	  	
(i)

	
the Owners shall continue to pay actual incurred Crew

	
299

	 	  	
paid promptly by their due date,

	  	
367

	 	  	  	
Support Costs during the said further period of three

	
300

	 	  	
6.3    the Owners’ Insurances name the Managers and,

	  	
368

	 	  	  	
calendar months and

	
301

	 	  	
subject to underwriters’ agreement, any third party

	  	
369

	 	  	
(ii)

	
the Owners shall pay an equitable proportion of any

	
302

	 	  	
designated by the Managers as a joint assured, with full

	  	
370

	 	  	  	
Severance Costs which may materialise, not

	
303

	 	  	
cover, with the Owners obtaining cover in respect of each

	  	
371

	 	  	  	
exceeding the amount stated in Box 16.

	
304

	 	  	
of the insurances specified in sub-clause 6.1:

	  	
372

	 	  	
8.5    If the Owners decide to lay-up the Vessel whilst this

	
305

	 	  	
(i)

	
on terms whereby the Managers and any such third

	  	
373

	 	  	
Agreement remains in force and such lay-up lasts for more

	
306

	 	  	  	
party are liable in respect of premiums or calls arising

	  	
374

	 	  	
than three months, an appropriate reduction of the

	
307

	 	  	  	
in connection with the Owners’ Insurances; or

	  	
375

	 	  	
management fee for the period exceeding three months until

	
308

	 	  	
(ii)

	
if reasonably obtainable, on terms such that neither

	  	
376

	 	  	
one month before the Vessel is again put into service shall

	
309

	 	  	  	
the Managers nor any such third party shall be under

	  	
377

	 	  	
be mutually agreed between the parties.

	
310

	 	  	  	
any liability in respect of premiums or calls arising in

	  	
378

	 	  	
8.6    Unless otherwise agreed in writing all discounts and

	
311

	 	  	  	
connection with the Owners’ Insurances; or

	  	
379

	 	  	
commissions obtained by the Managers in the course of the

	
312

	 	  	
(iii)

	
on such other terms as may be agreed in writing.

	  	
380

	 	  	
management of the Vessel shall be credited to the Owners.

	
313

	 	  	
Indicate alternative (i), (ii) or (iii) in Box 14. If Box 14 is

	  	
381

	 	  	  
	
314

	 	  	
left blank then (i) applies.

	  	
382

	 	
9.

	
Budgets and Management of Funds

	
315

	 	  	
6.4    written evidence is provided, to the reasonable

	  	
383

	 	  	
9.1    The Managers shall present to the Owners annually a

	
316

	 	  	
satisfaction of the Managers, of their compliance with their

	  	
384

	 	  	
budget for the following twelve months in such form, as the

	
317

	 	  	
obligations under Clause 6 within a reasonable time of the

	  	
385

	 	  	
Owners require. The annual budgets shall be prepared by

	
318

	 	  	
commencement of the Agreement, and of each renewal date

	  	
386

	 	  	
the Managers and submitted to the Owners not less than

	
319

	 	  	
and, if specifically requested, of each payment date of the

	  	
387

	 	  	
two months before January 1st.

	
320

	 	  	
Owners’ Insurances.

	  	
388

	 	  	
9.2    The Owners shall indicate to the Managers their

	
321

	 	  	  	  	
389

	 	  	
acceptance and approval of the annual budget within one

	
322

	 	
7.

	
Income Collected and Expenses Paid on Behalf of Owners

	  	
390

	 	  	
month of presentation and in the absence of any such

	
323

	 	  	
7.1    All moneys collected by the Managers under the

	  	
391

	 	  	
indication the Managers shall be entitled to assume that the

	
324

	 	  	
terms of this Agreement (other than moneys payable by the

	  	
392

	 	  	
Owners have accepted the proposed budget.

	
325

	 	  	
Owners to the Managers) and any interest thereon shall be

	  	
393

	 	  	
9.3    Following the agreement of the budget, the Managers

	
326

	 	  	
held to the credit of the Owners in a separate bank account.

	  	
394

	 	  	
shall prepare and present to the Owners their estimate of the

	
327

	 	  	
7.2    All expenses incurred by the Managers under the

	  	
395

	 	  	
working capital requirements of the Vessel and the

	
328

	 	  	
terms of this Agreement on behalf of the Owners (including

	  	
396

	 	  	
Managers shall each month up-date this estimate. Based

	
329

	 	  	
expenses as provided in Clause 8) may be debited against

	  	
397

	 	  	
thereon, the Managers shall each month request the Owners

	
330

	 	  	
the Owners in the account referred to under sub-clause 7.1

	  	
398

	 	  	
in writing for the funds required to run the Vessel for the

	
331

	 	  	
but shall in any event remain payable by the Owners to the

	  	
399

	 	  	
ensuing month, including the payment of any occasional or

	
332

	 	  	
Managers on demand.

	  	
400

	 	  	
extraordinary item of expenditure, such as emergency repair

	
333

	 	  	  	  	
401

	 	  	
costs, additional insurance premiums, bunkers or

	
334

	 	
8.

	
Management Fee

	  	
402

	 	  	
provisions. Such funds shall be received by the Managers

	
335

	 	  	
8.1    The Owners shall pay to the Managers for their

	  	
403

	 	  	
within ten running days after the receipt by the Owners of

	
336

	 	  	
services as Managers under this Agreement an annual

	  	
404

	 	  	
the Managers’ written request and shall be held to the credit

	
337

	 	  	
management fee as stated in Box 15 which shall be payable

	  	
405

	 	  	
of the Owners in a separate bank account.

	
338

	 	  	
by equal monthly instalments in advance at the end of each

	  	
406

	 	  	
9.4    The  Managers shall  produce a  comparison  between

	
339

	 	  	
month, the first instalment being payable on the

	  	
407

	 	  	
budgeted and actual income and expenditure of the Vessel

	
340

	 	  	
commencement of this Agreement at the end of next month

	  	
408

	 	  	
in such form as required by the Owners on a monthly basis.

	
341

	 	  	
after commencement of this Agreement (see Clause 2 and

	  	
409

	 	  	
On a quarterly statement of vessels operating costs which

	
342

	 	  	
Box 4) and subsequent instalments being payable every

	  	
410

	 	  	
includes necessary explanations for deviates from the

	
343

	 	  	
month.

	  	
411

	 	  	
agreed budget and forecast operating cost for the whole

	
344

	 	  	
8.2    The management fee shall be subject to an annual

	  	
412

	 	  	
year (ref. clause 3.5).

	
345

	 	  	
review at the end of each calendar year and the proposed

	  	
413

	 	  	  
	  	 	  	  	  	
414

	 	  	
9.5    Notwithstanding anything contained herein to the

	  	 	  	  	  	
415

	 	  	
contrary, the Managers shall in no circumstances be

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

	
416

	 	  	
required to use or commit their own funds to finance the

	  	
486

	 	  	
exemption from liability, defence and immunity of

	
417

	 	  	
provision of the Management Services.

	  	
487

	 	  	
whatsoever nature applicable to the Managers or to which

	
418

	 	  	  	  	
488

	 	  	
the Managers are entitled hereunder shall also be available

	
419

	 	
10.

	
Managers’ Right to Sub-Contract

	  	
489

	 	  	
and shall extend to protect every such employee or agent of

	
420

	 	  	
The Managers shall not have the right to sub-contract any

	  	
490

	 	  	
the Managers acting as aforesaid and for the purpose of all

	
421

	 	  	
of their obligations hereunder, including those mentioned in

	  	
491

	 	  	
the foregoing provisions of this Clause 11 the Managers are

	
422

	 	  	
sub-clause 3.1, without the prior written consent of the

	  	
492

	 	  	
or shall be deemed to be acting as agent or trustee on behalf

	
423

	 	  	
Owners. which shall not be unreasonably withheld. In the

	  	
493

	 	  	
of and for the benefit of all persons who are or might be

	
424

	 	  	
event of such a sub-contract the Managers shall remain

	  	
494

	 	  	
their servants or agents from time to time (including sub-

	
425

	 	  	
fully liable for the due performance of their obligations

	  	
495

	 	  	
contractors as aforesaid) and all such persons shall to this

	
426

	 	  	
under this Agreement.

	  	
496

	 	  	
extent be or be deemed to be parties to this Agreement.

	
427

	 	  	  	  	
497

	 	  	  
	
428

	 	
11.

	
Responsibilities

	  	
498

	 	
12.

	
Documentation

	
429

	 	  	
11.1    Force Majeure – Neither the Owners nor the

	  	
499

	 	  	
Where the Managers are providing Technical Management

	
430

	 	  	
Managers shall be under any liability for any failure to

	  	
500

	 	  	
in accordance with sub-clause 3.2 and/or Crew

	
431

	 	  	
perform any of their obligations hereunder by reason of any

	  	
501

	 	  	
Management in accordance with sub-clause 3.1, they shall

	
432

	 	  	
cause whatsoever of any nature or kind beyond their

	  	
502

	 	  	
make available, upon Owners’ request, all documentation

	
433

	 	  	
reasonable control.

	  	
503

	 	  	
and records related to the Safety Management System

	
434

	 	  	
11.2    Liability to Owners –(i) Without prejudice to sub-

	  	
504

	 	  	
(SMS) and/or the Crew which the Owners need in order to

	
435

	 	  	
clause 11.1, the Managers shall be under no liability

	  	
505

	 	  	
demonstrate compliance with the ISM Code and STCW 95

	
436

	 	  	
whatsoever to the Owners for any loss, damage, delay or

	  	
506

	 	  	
or to defend a claim against a third party.

	
437

	 	  	
expense of whatsoever nature, whether direct or indirect,

	  	
507

	 	  	  
	
438

	 	  	
(including but not limited to loss of profit arising out of or

	  	
508

	 	
13.

	
General Administration

	
439

	 	  	
in connection with detention of or delay to the Vessel) and

	  	
509

	 	  	
13.1    The Managers shall in consultation with the Owners

	
440

	 	  	
howsoever arising in the course of performance of the

	  	
510

	 	  	
handle and settle all claims arising out of the Management

	
441

	 	  	
Management Services UNLESS same is proved to have

	  	
511

	 	  	
Services hereunder and keep the Owners informed

	
442

	 	  	
resulted solely from the negligence, gross negligence or

	  	
512

	 	  	
regarding any incident of which the Managers become

	
443

	 	  	
wilful default of the Managers or their employees, or agents

	  	
513

	 	  	
aware, which gives or may give rise to claims or disputes

	
444

	 	  	
or sub-contractors employed by them in connection with the

	  	
514

	 	  	
involving third parties.

	
445

	 	  	
Vessel, in which case (save where loss, damage, delay or

	  	
515

	 	  	
13.2    The Managers shall, as instructed by the Owners,

	
446

	 	  	
expense has resulted from the Managers’ personal act or

	  	
516

	 	  	
bring or defend actions, suits or proceedings in connection

	
447

	 	  	
omission committed with the intent to cause same or

	  	
517

	 	  	
with matters entrusted to the Managers according to this

	
448

	 	  	
recklessly and with knowledge that such loss, damage,

	  	
518

	 	  	
Agreement.

	
449

	 	  	
delay or expense would probably result) the Managers’

	  	
519

	 	  	
13.3    The Managers in consultation with the Owners shall

	
450

	 	  	
liability for each incident or series of incidents giving rise

	  	
520

	 	  	
also have power to obtain legal or technical or other outside

	
451

	 	  	
to a claim or claims shall never exceed a total of ten times

	  	
521

	 	  	
expert advice in relation to the handling and settlement of

	
452

	 	  	
the annual management fee payable hereunder.

	  	
522

	 	  	
claims and disputes or all other matters affecting the

	
453

	 	  	
(ii) Notwithstanding anything that may appear to the

	  	
523

	 	  	
interests of the Owners in respect of the Vessel.

	
454

	 	  	
contrary in this Agreement, the Managers shall not be liable

	  	
524

	 	  	
13.4    The Owners shall arrange for the provision of any

	
455

	 	  	
for any of the actions of the Crew, even if such actions are

	  	
525

	 	  	
necessary guarantee bond or other security.

	
456

	 	  	
negligent, grossly negligent or wilful, except only to the

	  	
526

	 	  	
13.5    Any costs reasonably incurred by the Managers in

	
457

	 	  	
extent that they are shown to have resulted from a failure by

	  	
527

	 	  	
carrying out their obligations according to Clause 13 shall

	
458

	 	  	
the Managers to discharge their obligations under sub-

	  	
528

	 	  	
be reimbursed by the Owners.

	
459

	 	  	
clause 3.1, in which case their liability shall be limited in

	  	
529

	 	  	  
	
460

	 	  	
accordance with the terms of this Clause 11.

	  	
530

	 	
14.

	
Auditing

	
461

	 	  	
11.3    Indemnity – Except to the extent and solely for the

	  	
531

	 	  	
The Managers shall at all times maintain and keep true and

	
462

	 	  	
amount therein set out that the Managers would be liable

	  	
532

	 	  	
correct accounts and shall make the same available for

	
463

	 	  	
under sub-clause 11.2, the Owners hereby undertake to

	  	
533

	 	  	
inspection and auditing by the Owners at such times as may

	
464

	 	  	
keep the Managers and their employees, agents and sub-

	  	
534

	 	  	
be mutually agreed. On the termination, for whatever

	
465

	 	  	
contractors indemnified and to hold them harmless against

	  	
535

	 	  	
reasons, of this Agreement, the Managers shall at Owners’

	
466

	 	  	
all actions, proceedings, claims, demands or liabilities

	  	
536

	 	  	
cost release to the Owners, if so requested, the originals

	
467

	 	  	
whatsoever or howsoever arising which may be brought

	  	
537

	 	  	
where possible, or otherwise certified copies, of all such

	
468

	 	  	
against them or incurred or suffered by them arising out of

	  	
538

	 	  	
accounts and all documents specifically relating to the

	
469

	 	  	
or in connection with the performance of the Agreement,

	  	
539

	 	  	
Vessel and her operation.

	
470

	 	  	
and against and in respect of all costs, losses, damages and

	  	
540

	 	  	
The Manager shall operate in compliance with SOX and

	
471

	 	  	
expenses (including legal costs and expenses on a full

	  	
541

	 	  	
annualy provide a SAS70 type 2 report. The cost of such

	
472

	 	  	
indemnity basis) which the Managers may suffer or incur

	  	
542

	 	  	
report to be distributed equally on the vessel accounts of

	
473

	 	  	
(either directly or indirectly) in the course of the

	  	
543

	 	  	
the managed fleet.

	
474

	 	  	
performance of this Agreement.

	  	
544

	 	  	
After closing a financial year the Managers shall deliver to

	
475

	 	  	
11.4    “Himalaya” – It is hereby expressly agreed that no

	  	
545

	 	  	
the Owners and at Owners costs the annual accounts

	
476

	 	  	
employee or agent of the Managers (including every sub-

	  	
546

	 	  	
audited by a state-certified public accountant.

	
477

	 	  	
contractor from time to time employed by the Managers)

	  	
547

	 	  	  
	
478

	 	  	
shall in any circumstances whatsoever be under any liability

	  	
548

	 	
15.

	
Inspection of Vessel

	
479

	 	  	
whatsoever to the Owners for any loss, damage or delay of

	  	
549

	 	  	
The Owners shall have the right at any time after giving

	
480

	 	  	
whatsoever kind arising or resulting directly or indirectly

	  	
550

	 	  	
reasonable notice to the Managers to inspect the Vessel for

	
481

	 	  	
from any act, neglect or default on his part while acting in

	  	
551

	 	  	
any reason they consider necessary.

	
482

	 	  	
the course of or in connection with his employment and,

	  	
552

	 	  	  
	
483

	 	  	
without prejudice to the generality of the foregoing

	  	
553

	 	
16.

	
Compliance with Laws and Regulations

	
484

	 	  	
provisions in this Clause 11, every exemption, limitation,

	  	
554

	 	  	
The Managers will not do or permit to be done anything,

	
485

	 	  	
condition and liberty herein contained and every right,

	  	
555

	 	  	
which might cause any breach or infringement of the laws

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

	
556

	 	  	
and regulations of the Vessel’s flag, or of the places where

	  	
625

	 	  	
18.6    The termination of this Agreement shall be without

	
557

	 	  	
she trades.

	  	
626

	 	  	
prejudice to all rights accrued due between the parties prior

	
558

	 	
17.

	
Duration of the Agreement

	  	
627

	 	  	
to the date of termination.

	
559

	 	  	
This Agreement shall come into effect on the day and year

	  	
628

	 	
19.

	
Law and Arbitration

	
560

	 	  	
stated in Box 4 and shall continue until the date stated in

	  	
629

	 	  	
19.1    This Agreement shall be governed by and construed

	
561

	 	  	
Box 17. Thereafter it shall continue until terminated by

	  	
630

	 	  	
in accordance with English and any dispute arising out of or

	
562

	 	  	
either party giving to the other notice in writing, in which

	  	
631

	 	  	
in connection with this Agreement shall be referred to

	
563

	 	  	
event the Agreement shall terminate upon the expiration of

	  	
632

	 	  	
arbitration in London in accordance with the Arbitration

	
564

	 	  	
a period of two months from the date upon which such

	  	
633

	 	  	
Act 1996 or any statutory modification or re-enactment

	
565

	 	  	
notice was given.

	  	
634

	 	  	
thereof save to the extent necessary to give effect to the

	
566

	 	  	  	  	
635

	 	  	
provisions of this Clause.

	
567

	 	
18.

	
Termination

	  	
636

	 	  	
The arbitration shall be conducted in accordance with the

	
568

	 	  	
18.1    Owners’ default

	  	
637

	 	  	
London Maritime Arbitrators Association (LMAA) Terms

	
569

	 	  	
(i)

	
The Managers shall be entitled to terminate the

	  	
638

	 	  	
current at the time when the arbitration proceedings are

	
570

	 	  	  	
Agreement with immediate effect by notice in writing

	  	
639

	 	  	
commenced.

	
571

	 	  	  	
if any moneys payable by the Owners under this

	  	
640

	 	  	
The reference shall be to three arbitrators. A party wishing

	
572

	 	  	  	
Agreement shall not have been received in Managers’

	  	
641

	 	  	
to refer a dispute to arbitration shall appoint its arbitrator

	
573

	 	  	  	
nominated account within ten running days of receipt

	  	
642

	 	  	
and send notice of such appointment in writing to the other

	
574

	 	  	  	
by the Owners of the Managers written request or if

	  	
643

	 	  	
party requiring the other party to appoint its own arbitrator

	
575

	 	  	  	
the Vessel is repossessed by the Mortgagees.

	  	
644

	 	  	
within 14 calendar days of that notice and stating that it will

	
576

	 	  	
(ii)

	
If the Owners:

	  	
645

	 	  	
appoint its arbitrator as sole arbitrator unless the other party

	
577

	 	  	  	
(a)

	
fail to meet their obligations under sub-clause 5.1

	  	
646

	 	  	
appoints its own arbitrator and gives notice that it has done

	
578

	 	  	  	  	
of this Agreement for any reason within their

	  	
647

	 	  	
so within the 14 days specified. If the other party does not

	
579

	 	  	  	  	
control, or

	  	
648

	 	  	
appoint its own arbitrator and give notice that it has done so

	
580

	 	  	  	
(b)

	
proceed with the employment of or continue to

	  	
649

	 	  	
within the 14 days specified, the party referring a dispute to

	
581

	 	  	  	  	
employ the Vessel in the carriage of contraband,

	  	
650

	 	  	
arbitration may, without the requirement of any further

	
582

	 	  	  	  	
blockade running, or in an unlawful trade, or on a

	  	
651

	 	  	
prior notice to the other party, appoint its arbitrator as sole

	
583

	 	  	  	  	
voyage which in the reasonable opinion of the

	  	
652

	 	  	
arbitrator and shall advise the other party accordingly. The

	
584

	 	  	  	  	
Managers is unduly hazardous or improper,

	  	
653

	 	  	
award of a sole arbitrator shall be binding on both parties as

	
585

	 	  	  	  	
the Managers may give notice of the default to the

	  	
654

	 	  	
if he had been appointed by agreement.

	
586

	 	  	  	  	
Owners, requiring them to remedy it as soon as

	  	
655

	 	  	
Nothing herein shall prevent the parties agreeing in writing

	
587

	 	  	  	  	
practically possible. In the event that the Owners fail

	  	
656

	 	  	
to vary these provisions to provide for the appointment of a

	
588

	 	  	  	  	
to remedy it within a reasonable time to the

	  	
657

	 	  	
sole arbitrator.

	
589

	 	  	  	  	
satisfaction of the Managers, the Managers shall be

	  	
658

	 	  	
In cases where neither the claim nor any counterclaim

	
590

	 	  	  	  	
entitled to terminate the Agreement with immediate

	  	
659

	 	  	
exceeds the sum of USD50,000 (or such other sum as the

	
591

	 	  	  	  	
effect by notice in writing.

	  	
660

	 	  	
parties may agree) the arbitration shall be conducted in

	
592

	 	  	
18.2    Managers’ Default

	  	
661

	 	  	
accordance with the LMAA Small Claims Procedure

	
593

	 	  	
If the Managers fail to meet their obligations under Clauses

	  	
662

	 	  	
current at the time when the arbitration proceedings are

	
594

	 	  	
3 and 4 of this Agreement for any reason within the control

	  	
663

	 	  	
commenced.

	
595

	 	  	
of the Managers, the Owners may give notice in writing to

	  	
664

	 	  	
19.2    This Agreement shall be governed by and construed

	
596

	 	  	
the Managers of the default, requiring them to remedy it as

	  	
665

	 	  	
in accordance with Title 9 of the United States Code and

	
597

	 	  	
soon as practically possible. In the event that the Managers

	  	
666

	 	  	
the Maritime Law of the United States and any dispute

	
598

	 	  	
fail to remedy it within a reasonable time to the satisfaction

	  	
667

	 	  	
arising out of or in connection with this Agreement shall be

	
599

	 	  	
of the Owners, the Owners shall be entitled to terminate the

	  	
668

	 	  	
referred to three persons at New York, one to be appointed

	
600

	 	  	
Agreement with immediate effect by notice in writing.

	  	
669

	 	  	
by each of the parties hereto, and the third by the two so

	
601

	 	  	
18.3    Extraordinary Termination

	  	
670

	 	  	
chosen; their decision or that of any two of them shall be

	
602

	 	  	
This Agreement shall be deemed to be terminated in the

	  	
671

	 	  	
final, and for the purposes of enforcing any award,

	
603

	 	  	
case of the sale of the Vessel or if the Vessel becomes a

	  	
672

	 	  	
judgement may be entered on an award by any court of

	
604

	 	  	
total loss or is declared as a constructive or compromised or

	  	
673

	 	  	
competent jurisdiction. The proceedings shall be conducted

	
605

	 	  	
arranged total loss or is requisitioned.

	  	
674

	 	  	
in accordance with the rules of the Society of Maritime

	
606

	 	  	
18.4    For the purpose of sub-clause 18.3 hereof

	  	
675

	 	  	
Arbitrators, Inc.

	
607

	 	  	
(i)

	
the date upon which the Vessel is to be treated as

	  	
676

	 	  	
In cases where neither the claim nor any counterclaim

	
608

	 	  	  	
having been sold or otherwise disposed of shall be the

	  	
677

	 	  	
exceeds the sum of USD50,000 (or such other sum as the

	
609

	 	  	  	
date on which the Owners cease to be registered as

	  	
678

	 	  	
parties may agree) the arbitration shall be conducted in

	
610

	 	  	  	
Owners of the Vessel;

	  	
679

	 	  	
accordance with the Shortened Arbitration Procedure of the

	
611

	 	  	
(ii)

	
the Vessel shall not be deemed to be lost unless either

	  	
680

	 	  	
Society of Maritime Arbitrators, Inc. current at the time

	
612

	 	  	  	
she has become an actual total loss or agreement has

	  	
681

	 	  	
when the arbitration proceedings are commenced.

	
613

	 	  	  	
been reached with her underwriters in respect of her

	  	
682

	 	  	
19.3    This Agreement shall be governed by and construed

	
614

	 	  	  	
constructive, compromised or arranged total loss or if

	  	
683

	 	  	
in accordance with the laws of the place mutually agreed by

	
615

	 	  	  	
such agreement with her underwriters is not reached it

	  	
684

	 	  	
the parties and any dispute arising out of or in connection

	
616

	 	  	  	
is adjudged by a competent tribunal that a

	  	
685

	 	  	
with this Agreement shall be referred to arbitration at a

	
617

	 	  	  	
constructive loss of the Vessel has occurred.

	  	
686

	 	  	
mutually agreed place, subject to the procedures applicable

	
618

	 	  	
18.5    This Agreement shall terminate forthwith in the event

	  	
687

	 	  	
there – as per Box 18 in Part I.

	
619

	 	  	
of an order being made or resolution passed for the winding

	  	
688

	 	  	
19.4    If Box 18 in Part I is not appropriately filled in, sub-

	
620

	 	  	
up, dissolution, liquidation or bankruptcy of either party

	  	
689

	 	  	
clause 19.1 of this Clause shall apply.

	
621

	 	  	
(otherwise than for the purpose of reconstruction or

	  	
690

	 	  	  
	
622

	 	  	
amalgamation) or if a receiver is appointed, or if it suspends

	  	
691

	 	  	
Note: 19.1, 19.2 and 19.3 are alternatives; indicate

	
623

	 	  	
payment, ceases to carry on business or makes any special

	  	
692

	 	  	
alternative agreed in Box 18.

	
624

	 	  	
arrangement or composition with its creditors.

	  	
693

	 	  	  
	  	 	  	  	  	
694

	 	
20.

	
Notices

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

	
695

	 	  	
20.1    Any notice to be given by either party to the other

	  	  	 	  	  
	
696

	 	  	
party shall be in writing and may be sent by fax, e-mail,

	  	  	 	  	  
	
697

	 	  	
registered or recorded mail or by personal service.

	  	  	 	  	  
	
698

	 	  	
20.2    The address of the Parties for service of such

	  	  	 	  	  
	
699

	 	  	
communication shall be as stated in Boxes 19 and 20,

	  	  	 	  	  
	
700

	 	  	
respectively.

	  	  	 	  	  
	
701

	 	  	  	  	  	 	  	  
	
702

	 	  	
The attached clauses 3.1 (ix), (x), 3.2 (vi), (vii) and 21

	  	  	 	  	  
	
703

	 	  	
listed on the following page are all deemed to be

	  	  	 	  	  
	
704

	 	  	
incorporated in this Shipmanagement Agreement.

	  	  	 	  	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

PART II

“Shipman 98” Standard Ship Management Agreement

(Additional Clauses)

	
3.1)

	
Crew Management:

	  	  
	
(ix)

	
The Managers will ensure that, during the entire period of the Agreement, is carried on board an ITF certificate or equivalent allowing the vessel’s calls and operations in all ports where an ITF certificate is compulsory.

	  	  
	
(x)

	
Managers warrant that its D&A policy meets the OCIMF Guidelines for control of Drug & Alcohol onboard the vessels, as well as meets ExxonMobil’s Drug & Alcohol policy requirements for the duration of the Agreement.   The Managers further warrant that they shall exercise due diligence to ensure that the D&A policies is complied with for the duration of the agreement.

	  	  
	
3.2)

	
Technical Management

	  	  
	
(vi)

	
The vessel will be participating in the OCIMF TMSA programme securing a rating sufficient  for the vessel to be acceptable by the oil majors.

	  	  
	
(vii)

	
Managers will ensure to  use  its best  endeavours to take all necessary and  reasonable steps to have the vessel inspected and accepted at any time by at least four of the following oil majors, namely ExxonMobil, Shell, Chevron, BP, TOTAL or Statoil and that there is always at least one SIRE report on file which is less than four months old.

	  	  
	
21)

	
 The Managers warrant that it has both ISO 9001, ISO 14001 and OSHAS 18001 certification in their documentation at the commencement of this Agreement and will maintain such certification for the duration of the Agreement.

 

 

 

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

ANNEX “A”

	
 

Date of Agreement:

	
 

Name of Vessel:

VESSELS PARTICULARS

	
Vessel Name

	  
	
Ex Names

	  
	
Flag

	  
	
Port of Registry

	  
	
Call Sign / IMO Number

	  
	
Type of Vessel

	  
	
Hull type

	  
	
Year build, Yard

	  
	  	  
	
Length O A

	  	  	
Dead-weight  (Designed)

	  
	
Length between P P

	  	  	
Gross tonnes  GT

	  
	
Beam (extreme)

	  	  	
Net tonnes     NT

	  
	
Depth moulded

	  	  	
Light ship

	  
	
Draft, summer

	  	  	
Vol. of ballast m3

	  
	  	  	  	  	  
	
PHONE SAT-B

	  	  	
Inert Gas installed

	  
	
FAX SAT-B

	  	  	
No. of cargo tanks

	  
	
TLX SAT- B

	  	  	
No. of Slop tanks

	  
	F77 Phone 	 	 	 	 
	
F77 Fax

	  	  	  	  
	
Phone (Mobile)

	  	  	
Vol. of cargo tanks 98%

	  
	
Call Sign

	  	  	
Vol. of Slop tanks 98%

	  
	
MMSI No.

	  	  	
Capacity of Cargo Pumps

	  
	  	  	  	  	  
	
FO capacity          95%

	  	  	
Main Engine

	  
	
MDO capacity         95%

	  	  	
Output ME (CSR)

	  
	
FW capacity

	  	  	
Aux. Engines

	  
	 	 	 	
Generators

	 
	
FO/day steaming

	  	  	
Emergency Generator Engine

	  
	 	 	 	
Generators

	 
	  	  	  	
Speed (Service)

	  
	  	  	  	  	  
	
Classification Society

	  	  	
Hull & Machinery

	  
	
Class ID

	  	  	
P & I

	  
	
IMO No.

	  	  	
Emergency  Response Service

	  
	
Official No.

	  	  	
QI

	  
	  	  	  	  	  
	
Owners

	  
	
In Management since

	  
	
Classification Notation

	  
	  	  
	
Last updated

	  

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

ANNEX “B”

	
 

Date of Agreement:

	
 

Name of Vessel:

 

	
DETAILS OF CREW

	
Total crew:  __ persons

	  	  	  
	
Officers

	
Ratings

	  
	
Rank:

	
Rank:

	  
	  	
 

	  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	  	  	  
	
Total:

	
Total:

	
Total:

	  	  	  

 

 

 

 

  

  

  

	 	GOODWOOD SHIP MANAGEMENT AGREEMENT	 Part II

 

 

ANNEX C

	
 

Date of Agreement:

	
 

Name of Vessel:

 

SERVICES FEE

	
Services

	Amount  	
USD

	
Frequency

	
Dry docking

	  	  
	
    ·       0-25 days

	
Included

	
Daily / Superintendent

	
    ·       > 25 days

	
500

	  
	  	  	  
	
Extraordinary Repair*

	
500

	
Daily / Superintendent

	  	  	  
	
Major upgrading*

	
500

	
Daily / Superintendent

	  	  	  
	
Change of Flag

	
2,500

	
As required

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}]]