Document:

ex10-1.htm

Exhibit 10.1

 

 

 

  

ADDENDUM No 3

 

to a

 

NOK 600,000,000

 

Multi-Currency Revolving Credit Facility Agreement

 

originally dated 27 December 2012, and as amended by an

 

Amendment and Restatement Agreement

 

dated 23 October 2014

 

This Addendum No. 3 (the “Addendum”) is made on 29 January 2016 between:

 

	
(i)
	
GulfMark Rederi AS of Strandgata 5, 4307 Sandnes, Norway, organisation no. 979 212 658, as borrower (the “Borrower״);

 

	
(ii)
	
The banks and financial institutions listed in Schedule 1 of the Agreement (as defined below), as lenders (together, the “Lenders”);

 

	
(iii)
	
DNB BANK ASA of Solheimsgaten 7C, N-5058 Bergen, Norway, organisation number 984 851 006, as mandated lead arranger (the “Arranger”); and

 

	
(iv)
	
DNB BANK ASA of Solheimsgaten 7C, N-5058 Bergen, Norway, organisation number 984 851 006, as bookrunner, facility and syndication agent (the “Agent”).

 

(The above mentioned hereinafter also referred to as the “Parties”).

 

WHEREAS:

 

	
A.
	
The Parties have entered into a NOK 600,000,000 Multi-Currency Revolving Credit Facility Agreement dated 27 December 2012, as amended by an Amendment and Restatement Agreement dated 23 October 2014, by an Addendum dated 13 February 2015 and by an Addendum No. 2 dated 7 July 2015 (as amended from time to time, the “Agreement”), whereby the Lenders agreed to make available to the Borrower a revolving credit facility in the aggregate principal amount of up to NOK 600,000,000;

 

	
B.
	
The Parties have agreed on, inter alia, i) certain amendments to the financial covenants provisions of the Agreement, and ii) additional security to be granted by the Borrower under the Agreement, on the terms and conditions set out in this Addendum.

 

NOW IT IS HEREBY AGREED AS FOLLOWS:

 

1            DEFINITIONS

 

In this Addendum, unless the context otherwise requires, terms defined in the Agreement shall bear the same meaning when used herein and in the preamble hereto. In addition, the following definitions shall apply:

 

 

1

 

 

“Agreement” means the Agreement as supplemented and amended by this Addendum.

 

“New Vessel” means each of the vessels “Highland Defender”, “Highland Guardian”, “Highland Knight” and “Highland Princess” added to Schedule 2 (Vessels) pursuant to this Addendum.

 

2           EFFECTIVE DATE

 

The provisions of this Addendum shall take effect only if the Agent has received all the documents and other evidence listed in Clause 6.1 (Conditions precedent) hereto, each in a form and substance satisfactory to it. The Agent shall notify the Borrower in writing promptly upon being so satisfied (the “Effective Date”).

 

3           AMENDMENTS TO THE AGREEMENT

 

With effect from the Effective Date of this Addendum, the Agreement shall be amended in the following respect:

 

3.1        Definitions

 

3.1.1     Amendment of existing definitions

 

The Parties agree that the following definition as defined in Clause 1 (Definitions and Interpretation) of the Agreement shall be amended to read as follows:

 

“Applicable Margin” shall be calculated on, and effective from each Determination Date in accordance with the following grid based on the ratio of Adjusted EBITDA to Interest Expense (including amounts of capitalized interest) of the Parent Guarantor on a consolidated basis for the four fiscal quarter periods ending immediately prior to the relevant Determination Date:

 

	
Ratio of Adjusted EBITDA to Interest Expense

 
	
Applicable Margin

	
Equal to or greater than 3.50:1.00

 
	
2.50% per annum

	
Equal to or greater than 2.50:1.00 but less than 3.50:1.00

 
	
3.00% per annum

	
Equal to or greater than 1.00:1.00 and less than 2.50:1.00

 
	
3.50% per annum

	
Less than 1.00:1.00

 
	
4.00% per annum

“

 

3.1.2     Deletion of definition

 

The Parties agree that the definition of “EBITDA” shall be deleted from Clause 1 (Definitions and Interpretation) of the Agreement.

 

3.1.3     New definitions

 

The Parties agree that the following new definitions shall be added to Clause 1 (Definitions and Interpretation) of the Agreement:

 

“Acceptable Bank” means:

 

(a) (i) the lenders party to the RBS Facility, and (ii) the lenders party to this Agreement;

 

 

2

 

 

(b) a bank or financial institution which has a rating for its long-term unsecured and non-credit-enhanced debt obligations of A- or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or A3 or higher by Moody’s Investors Service Limited or a comparable rating from an internationally recognised credit rating agency; or

 

(c) any other bank or financial institution approved by the Agent

 

“Adjusted EBITDA” means, for any period, the Consolidated Net Income for such period, without duplication:-

 

	
(a)
	
plus consolidated provision for tax expenses;

 

	
(b)
	
plus consolidated depreciation and amortization;

 

	
(c)
	
plus consolidated interest expense;

 

	
(d)
	
plus impairment charges to the extent included in the income statement (including with respect to fixed assets or goodwill or other intangibles);

 

	
(e)
	
plus any non-cash compensation charge arising from any grant of stock, stock options or other equity-based awards, to the extent included in the income statement and separately stated in the statement of cash flows as a reconciling item from net income to cash flows from operations;

 

	
(f)
	
less consolidated interest income;

 

	
(g)
	
plus (less) the non-cash portion of losses (gains) on disposals, to the extent included in the income statement if separately stated in the operating and investing sections of the statement of cash flows as a net reduction or increase in cash flow;

 

	
(h)
	
plus or minus non cash income or losses in relation to hedging activities;

 

	
(i)
	
plus (i) costs (including customs, export or other governmental charges or fees) of or arising from redeploying a vessel to another region in connection with discontinued operations, and (ii) any severance costs (including housing costs, transportation expenses, and other personnel related termination expenses) and unusual or non-recurring items arising in connection with discontinued operations or the termination of employment; and

 

	
(j)
	
plus costs associated with exiting regions that the Parent Guarantor has publicly announced from time to time that it will exit.

 

For the purposes of calculating Adjusted EBITDA for any period of four consecutive fiscal quarters (each, a “Reference Period”), (i) if at any time during such Reference Period (and after the date hereof) the Parent Guarantor or any of its Subsidiaries shall have made any Material Disposition (as defined below), the Adjusted EBITDA for such Reference Period shall be reduced by an amount equal to the Adjusted EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such Reference Period or increased by an amount equal to the Adjusted EBITDA (if negative) attributable thereto for such Reference Period and (ii) if during such Reference Period (and after the date hereof) the Parent Guarantor or any of its Subsidiaries shall have made a Material Acquisition, Adjusted EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto to adjustments that (A) are permitted or required by Regulation S-X as promulgated under the Securities Act of 1933, as amended, (B) have been certified by the chief financial officer of the Parent Guarantor and provided the Agent is satisfied that such adjustments have been prepared in good faith and are based upon reasonable assumptions, which assumptions have been detailed in writing by the Parent Guarantor or (C) are otherwise acceptable to the Agent (acting reasonably) as if such Material Acquisition occurred on the first day of such Reference Period. As used in this definition, “Material Acquisition” means any acquisition of property or series of related acquisitions of property that (x) constitutes assets comprising all or substantially all of the productive assets or an operating unit of a business or constitutes all or substantially all of the common stock of a Person and (y) involves the payment of consideration by the Parent Guarantor or any of its Subsidiaries in excess of USD 20,000,000.00; and “Material Disposition” means any disposition of property or series of related dispositions of property that (x) constitutes assets comprising all or substantially all of the productive assets or an operating unit of a business or constitutes all or substantially all of the common stock of a Person and (y) yields gross proceeds to the Parent Guarantor or any of its Subsidiaries in excess of USD 20,000,000.00.

 

 

3

 

 

“Cash” means, at any time, cash in hand or at bank and (in the latter case) credited to an account in the name of the Parent Guarantor or any Subsidiary thereof with an Acceptable Bank and to which the Parent Guarantor or any Subsidiary thereof is alone (or together with the Parent Guarantor or any Subsidiary thereof) beneficially entitled and for so long as:-

 

(a) that cash is repayable on demand

 

(b) repayment of that cash is not contingent on the prior discharge of any other indebtedness of any member of the Group or of any other person whatsoever or on the satisfaction of any other condition other than a request for repayment

 

(c) there is no Security Interest over that cash except for any Security Interest permitted by this Agreement or constituted by a netting or set-off arrangement entered into by the Parent Guarantor or any Subsidiary thereof in the ordinary course of their banking arrangements and

 

(d) the cash is freely and immediately available on demand to be applied in repayment or prepayment of credit facilities of the Parent Guarantor or a Subsidiary thereof.

 

“Consolidated Net Income” means, for any period, the net income (loss) of the Parent Guarantor and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP; provided that (a) the net income of any Person that is not a Subsidiary or that is accounted for by the equity method of accounting will be included only to the extent of the amount of dividends or other distributions actually paid in cash to the Parent Guarantor or any Subsidiary thereof during such period, (b) the net loss of any such Person will be included only to the extent such loss is funded in cash by the Parent Guarantor or any Subsidiary thereof during such period, and (c) the income or loss of any Person will be excluded to the extent such income or loss is accrued prior to the date it becomes a Subsidiary of Parent Guarantor or is merged into or consolidated with the Parent Guarantor or any Subsidiary thereof or the date that such Person’s assets are acquired by the Parent Guarantor or any Subsidiary thereof.

 

“Person” means a person, firm, corporation, partnership (general or limited), trust, limited liability company, business association or other entity of any kind.

 

“RBS Facility” means USD 100,000,000 multi-currency facility agreement of 26 September 2014, entered into between i.a. GulfMark Americas, Inc. as borrower, GulfMark Offshore, Inc. as parent guarantor, the Royal Bank of Scotland plc as agent and lender, and certain other banks and financial institutions as set out therein (as amended and supplemented from time to time).

 

3.2       Mandatory prepayment / reduction - Late delivery of the Newbuilding

 

The Parties agree that Clause 8.2 a) of the Agreement (as introduced in Addendum No. 2) shall be amended and restated in its entirety to read as follows:

 

“8.2 a) Mandatory prepayment / reduction – Late delivery of the Newbuilding

 

If (a) the Newbuilding for any reason whatsoever is not delivered to the Borrower on or before 31 March 2017, and the Parties have not agreed on any other satisfactory (in the Agent’s sole discretion) additional security in favour the Agent (on behalf of the Finance Parties), such additional security to be in an amount not less than the purchase price of the Newbuilding (if the additional security is a vessel, or vessels, such vessel(s) shall be built no earlier than 2010 and be acceptable to the Lender) or (b) the Borrower fails to deliver to the Agent the Mortgage and/or the Assignment of Insurances in respect of the Newbuilding on or before the Delivery Date:

 

	
a)
	
the Total Commitments shall be immediately reduced to NOK 450,000,000 (by reduction of each Lender’s Commitment on a pro rata basis); and

 

	
b)
	
the Borrower shall immediately prepay such amount of the Loans as necessary to ensure that the total outstanding amount of the Loans are equal to or less than NOK 450,000,000.”

 

 

4

 

 

3.3       Mandatory prepayment - Market Value to Loans

 

The Parties agree that Clause 8.5 shall be amended and restated in its entirety to read as follows:

 

“8.5 Mandatory prepayment - Market Value

 

If, at any time following the date of this Agreement, the Fleet Market Value is lower than three hundred per cent. (300%) of the aggregate of outstanding unpaid Loans under this Agreement, the Borrower shall within 10 days thereafter either (i) provide such additional security as the Agent (on behalf of the Finance Parties) may in its sole discretion accept, or (ii) prepay such amount of the Loans as may be necessary to ensure that the Fleet Market Value equals no less than three hundred per cent. (300%) of the aggregate outstanding unpaid loans under this Agreement.”

 

3.4        Mandatory prepayment - Market Value to Total Commitments

 

The Parties agree that a new clause 8.5 A) shall be added to the Agreement, reading as follows:

 

“8.5 A) Mandatory prepayment - Market Value to Total Commitments

 

If, at any time following the date of this Agreement, the Fleet Market Value is lower than two hundred per cent. (200%) of the Total Commitments, and the Borrower has not within 10 days thereafter either provided such additional security as the Agent (on behalf of the Finance Parties) may in its sole discretion accept, the Total Commitments shall be immediately reduced by the amount necessary to ensure that the Fleet Market Value equals not less than two hundred per cent. (200%) of the Total Commitments.”

 

3.5       Mandatory prepayment - Market Value to Commitment

 

The Parties agree that a new clause 8.5 B) shall be added to the Agreement, reading as follows:

 

“8.5 B) Mandatory prepayment - Excess Cash

 

For as long as drawings have been made and remain outstanding under this Facility and/or the RBS Facility, the Group on a consolidated basis shall not, as of the last day of the Parent Guarantor’s fiscal quarter (each, a “Relevant Quarter Date”) have Cash in excess of USD 35,000,000, provided that (i) this condition shall only apply to the extent that there are Loans outstanding under this Agreement at the Relevant Quarter Date, (ii) this condition shall not apply to, restrict or limit the amount of Cash held by members of the Group on any day that is not a Relevant Quarter Date and (iii) there will be no Default or Event of Default on the Relevant Quarter Date if the aggregate of all Cash held by members of the Group is in excess of USD 35,000,000 so long as the Parent Guarantor prepays one or more credit facilities in accordance with the provisions below.

 

Any Cash in excess of USD 35,000,000 (or its currency equivalent) as of the last day of the Relevant Quarter Date shall be used to prepay and reduce, on the last day of the then current Interest Period, the outstanding amount under this Facility and the RBS Facility on a pro-rata basis based on the respective outstanding principle amounts thereunder.

 

For the purpose of this Clause 8.5 B) Cash shall be measured on the last day of each March, June, September and December, and prepayment (if applicable) of the outstanding Loans shall be made on the next upcoming Repayment Date.״

 

3.6        Financial Reporting

 

The Parties agree that Clauses 19.1.1 and 19.1.2 shall be amended so that the Parent Guarantor’s consolidated financial statements and the accompanying Compliance Certificates shall be delivered within 45 days after each financial quarter and within 90 days after the end of each of Parent Guarantor’s financial year ends. Further, the Fleet Market Value shall be reported quarterly in the Compliance Certificates, as opposed to annually, and include valuations and a breakdown of each Vessel’s Market Value evidencing compliance with Clause 8.5 and 8.5 A).

 

Otherwise, Clauses 19.1.1 and 19.1.2 are to remain as is, and in full force and effect.

 

 

5

 

 

3.7        Interest Coverage – Parent Guarantor

 

The Parties agree that Clause 20.1 (Interest Coverage – Parent Guarantor) shall be amended and restated in its entirety to read as follows:

 

“20.1 Interest Coverage – Parent Guarantor

 

The ratio of Adjusted EBITDA to Interest Expense (including amounts of capitalized interest) of the Parent Guarantor on a consolidated basis shall, as of the end of each period of four fiscal quarters of the Parent Guarantor, not be less than;

 

	
a)
	
in the period from and including the fourth quarterly period of 2015, until, but not including, the 3rd quarterly period of 2017, there shall be no requirement with respect to the ratio;

 

	
b)
	
in the period from and including the 3rd quarterly period of 2017, until and including the 4th quarterly period of 2017, 1.50:1.00;

 

	
c)
	
in the period from and including the 1st quarterly period of 2018, until and including the 2nd quarterly period of 2018, 2.00:1.00; and

	 	 
	d) 	from and including the 3rd quarterly period of 2018 and onwards, 3.00:1.00.״

   

3.8        Capitalisation ratio - Parent Guarantor

 

The Parties agree that Clause 20.2 shall be amended and restated in its entirety to read as follows:

 

“20.2 Capitalisation Ratio - Parent Guarantor

 

The Capitalisation Ratio of the Parent Guarantor on a consolidated basis shall, as of the end of each fiscal quarterly period of the Parent Guarantor, not exceed sixty per cent (60%).”

 

3.9        Minimum Liquidity - Group

 

The Parties agree that Clause 20.5 shall be amended and restated in its entirety to read as follows:

 

“20.5 Minimum Liquidity - Group

 

The Group on a consolidated basis shall at all times, to be measured on the last day of each March, June, September and December, have Free Liquid Assets of minimum USD 35,000,000.”

 

3.10     Consolidated Adjusted EBITDA - Parent Guarantor

 

The Parties agree that a new Clause 20.6 shall be added to the Agreement, reading as follows:

 

“20.6 Consolidated Adjusted EBITDA - Parent Guarantor

 

The Adjusted EBITDA of the Parent Guarantor on a consolidated basis shall, as of the end of each fiscal quarter set out below, not be less than the amounts opposite thereto;

 

	
Period

 
	
Adjusted EBITDA

	
4th quarterly period of 2015

 
	
USD 5,000,000*

	
1st quarterly period of 2016

 
	
USD 10,000,000*

	
2nd quarterly period of 2016

 
	
USD 15,000,000*

	
3rd quarterly period of 2016

 
	
USD 20,000,000

	
4th quarterly period of 2016

 
	
USD 20,000,000

	
1st quarterly period of 2017

 
	
USD 20,000,000

	
2nd quarterly period of 2017

 
	
USD 20,000,000

* Accumulated for the preceding three, six and nine month periods (respectively).”

 

 

6

 

 

3.11      Commitment fee

 

The Parties agree that Clause 12.1 (Commitment fee) shall be amended and restated in its entirety to read as follows:

 

“12.1     Commitment fee

 

The Borrower shall, from the Effective Date and until the expiry of the Availability Period, pay to the Agent (for distribution to the Lenders) a commitment fee corresponding to 1.25% per annum on any undrawn and un-cancelled amounts (at any time) of the Total Commitments.

 

The accrued commitment fee is payable quarterly in arrears and at the Final Maturity Date. Accrued commitment fee shall also be payable on the cancelled amount of any Commitment at the date such cancellation comes into effect.”

 

3.12      Fleet Market Value

 

The Parties agree that Clause 22.1.12 (Fleet Market Value) shall be deleted in its entirety.

 

3.13      Schedules

 

The Parties agree that each of Schedule 2 (Vessels) and Schedule 5 (Compliance Certificate) of the Agreement shall be amended and restated in its entirety to read as Schedule 2 (Vessels) and Schedule 5 (Compliance Certificate) attached to this Addendum, respectively.

 

3.14      Lay Up of Vessels Permitted

 

The Parties agree to amend Clause 22 so as to add new Clause 22.1.15, which shall read in its entirety as follows:

 

“22.1.15 Lay Up of Vessels Permitted

 

Neither this Clause 22, nor any other provision hereof (including without limitation any requirement as to vessel maintenance or ongoing vessel classification), nor any provision in any Finance Document to the contrary, shall prevent or prohibit the Parent Guarantor, the Borrower or any Subsidiary of any of the foregoing from, or constitute or give rise to a Default or an Event of Default solely as a result of, stacking or laying up a Vessel, provided that such Vessel is stacked or laid up and thereafter maintained in accordance with good industry practice while stacked or laid up.”

 

4           AMENDMENT FEE

 

The Borrower shall pay to the Agent (for distribution to the Lenders) an amendment fee in an amount corresponding to one per cent (1.00%) of the Total Commitments, due and payable on the Effective Date.

 

5           CONTINUED FORCE AND EFFECT

 

Except as set out in this Addendum, the Agreement shall continue in full force and effect, and the Agreement and this Addendum shall be read and construed as one instrument. Further, the Borrower confirms that the Security Documents will continue in full force and effect, and extend to the liabilities and obligations of the Borrower and the Parent Guarantor under the Agreement as amended by this Addendum.

 

 

7

 

 

6           CONDITIONS PRECEDENTS

 

6.1        Conditions precedent

 

As conditions precedent for the amendments to the Agreement set forth in this Addendum coming into effect, the Borrower shall deliver to the Agent the following documents or evidence of facts (as the case may be) in a form and substance satisfactory to the Agent:

 

	
a)
	
This Addendum duly signed; and

 

	
b)
	
Evidence of payment of the amendment fee as set out in clause 4 to this Addendum.

 

6.2        Conditions subsequent

 

6.2.1     Within 30 days of the Effective Date

 

Latest within 30 calendar days following the Effective Date, the Borrower shall deliver to the Agent the following documents or evidence of facts (as the case may be) in a form and substance satisfactory to the Agent:

 

6.2.1.1    Miscellaneous

 

	
a)
	
Certificate of Incorporation of the Borrower;

 

	
b)
	
Articles of Association of the Borrower;

 

	
c)
	
Resolutions passed at a board meeting of the Borrower evidencing the approval of the terms of this Addendum, including the new security to be granted over the New Vessels, and the authorisation of its appropriate officer or officers or other representatives to execute this Addendum;

 

	
d)
	
Relevant constitutional documents in respect of the Parent Guarantor as requested by Norton Rose Fulbright US LLP for the purpose of issuing their legal opinion as set out in item (g) below;

 

	
e)
	
Resolutions passed at a board meeting of the Parent Guarantor evidencing the approval of the terms of an addendum or amendment to the Agreement, and the authorisation of its appropriate officer or officers or other representatives to execute this Addendum;

 

	
f)
	
A legal opinion as regards Norwegian Law matter, issued by Advokatfirmaet Thommessen AS; and

 

	
g)
	
A legal opinion as regards laws of the State of Delaware issued by Norton Rose Fulbright US LLP.

 

6.2.1.2    Vessel documents

 

In respect of each New Vessel (excluding MV “Highland Defender”):

 

	
a)
	
The Mortgage in respect of the New Vessel, and any Deed of Covenants collateral thereto (as applicable), duly executed on behalf of the Borrower;

 

	
b)
	
Any required or advisable amendment to the Assignment of Insurances in order to cover the New Vessel;

 

	
c)
	
Notice of Assignment of Insurances in respect of the New Vessel and, if applicable, the insurer’s acknowledgement thereof;

 

	
d)
	
Evidence (by way of transcript of registry) that the New Vessel is registered in the name of the Borrower in the United Kingdom Ship Registry or other acceptable registry (as applicable), that the Mortgage has been executed and recorded with its intended first priority against the New Vessel, and that no other encumbrances, maritime liens, mortgages or debts whatsoever are registered against the New Vessel;

 

 

8

 

 

	
e)
	
An updated class certificate and class status report related to the New Vessel from the relevant classification society, confirming that the New Vessel is classed with the highest class in accordance with Clause 22.1.2 (Classification and repairs) of the Agreement, free of extensions and overdue recommendations, except (as to any of the foregoing) to the extent that the New Vessel is laid up or stacked;

 

	
f)
	
Such certificates of insurance and/or insurance policies or cover notes as may be reasonably necessary to evidence that insurance cover has been taken out in respect of the New Vessel in accordance with Clause 22.1.1 (Insurance), and that the Agent’s (on behalf of the Finance Parties) Security Interest in the insurance policies have been noted in accordance with the relevant notices as required under the Assignment of Insurances;

 

	
g)
	
Copy of any commercial management agreement for the New Vessel;

 

	
h)
	
Copy of any technical management agreement for the New Vessel;

 

	
i)
	
The New Vessel’s current SMC;

 

	
j)
	
The relevant technical manager’s current DOC;

 

	
k)
	
The ISPS certificate for the New Vessel;

 

	
l)
	
Evidence of the Market Value of the New Vessel; and

 

	
m)
	
Legal opinion(s) relating to the Mortgage (and any other relevant Security Document) in respect of the New Vessel.

 

6.2.2     Latest by 30 July 2016

 

For the New Vessel “Highland Defender” each of the documents or evidence of facts (as the case may be) listed in Clause 6.2.1.2 (Vessel documents) shall be delivered latest by 30 July 2016 in a form and substance satisfactory to the Agent, or, if an extension is required to comply with the current charterparty of “Highland Defender”, latest by 31 August 2016.

 

7           GOVERNING LAW AND JURISDICTION

 

This Addendum shall be governed by and construed in accordance with Norwegian Law, and Clause 31 of the Agreement (Governing Law and Enforcement) applies to this Addendum and any disputes that may arise in relation hereto.

 

This Addendum has been executed in three copies.

 

* * *

 

 

9

 

 

SIGNATORIES:

 

The Borrower:

GulfMark Rederi AS

 

By:    /s/ Quintin V. Kneen                                                    

Name: Quintin V. Kneen

Title: Director 

 

 

The Lenders:

DNB Bank ASA

 

By:     /s/ Arnfinn Eilersten       Thomas Nordahl            

Name: Arnfinn Eilersten           Thomas Nordahl

Title: Senior Vice President       Senior Vice President 

 

 

The Agent and Arranger:

DNB Bank ASA

 

By:     /s/ Arnfinn Eilersten       Thomas Nordahl            

Name: Arnfinn Eilersten           Thomas Nordahl

Title: Senior Vice President       Senior Vice President 

 

 

The content of this Addendum is duly acknowledged and agreed, and capitalized terms used herein have the meaning set forth therefor in the Agreement. Furthermore the undersigned confirms as Parent Guarantor that the Parent Guarantee, and any other Finance Document to which the undersigned is a party, shall remain in full force and effect.

 

Without prejudice to any other mode of service, the Parent Guarantor irrevocably appoints the Borrower as its agent for service of process in relation to any proceedings before Norwegian courts in connection with any Finance Document.

 

The Parent Guarantor:

GulfMark Offshore, Inc.

 

By:    /s/ James M. Mitchell                                                  

Name: James M. Mitchell 

Title: Executive Vice President and Chief Financial Officer 

 

 

10

 

 

SCHEDULE 2

 

VESSELS

 

	
VESSEL NAME

 
	
TYPE
	
BUILT
	
IMO NO.

	
“NORTH CRUYS״

 
	
PSV
	
2014
	
9654098

	
“NORTH POMOR”

 
	
PSV
	
2013
	
9643465

	
“NORTH PURPOSE״

 
	
PSV
	
2009
	
9439462

	
“NORTH PROMISE״

 
	
PSV
	
2007
	
9364033

	
“HIGHLAND DEFENDER”

 
	
PSV
	
2013
	
9639335

	
“HIGHLAND GUARDIAN”

 
	
PSV
	
2013
	
9639347

	
“HIGHLAND KNIGHT”

 
	
PSV
	
2013
	
9643855

	
“HIGHLAND PRINCESS”

 
	
PSV
	
2014
	
9643867

	
HULL NO 131 UNDER 
CONSTRUCTION AT SIMEK AS1

 
	
PSV
	
EXPECTED 

DELIVERY: 1Q2017
	  

 

 

 

1 Subject to delivery of the Newbulding, and in any event not effective as an addition to this schedule until the Delivery Date with respect thereto as set forth herein above.

 

 

11

 

 

SCHEDULE 5

 

FORM OF COMPLIANCE CERTIFICATE

 

	
To:
	
DNB BANK ASA, as Agent

 

	

	
Shipping Offshore & Logistics, Bergen

 

	
From:
	
GulfMark Rederi AS, as Borrower

 

Date:       [•] [To be delivered no later than ninety (90)/forth five (45) days after each applicable reporting date as set forth in the Agreement]

 

GULFMARK REDERI AS – NOK 600,000,000 AMENDED AND RESTATED SECURED REVOLVING CREDIT FACILITY AGREEMENT DATED 23 OCTOBER 2014 (AS LATER AMENDED, THE “AGREEMENT”)

 

We refer to the Agreement. Terms defined in the Agreement have their defined meanings when used in this Compliance Certificate. This certificate reports results in accordance with the Agreement, and does not create by itself obligations not contained in the Agreement.

 

	
a)
	
We hereby represent and warrant that at the date of this Compliance Certificate, we are in compliance with Clause 20 (Financial covenants) of the Agreement, that no Event of Default has occurred and that the representations and warranties contained in Clause 18 of the Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at this date (except for such representations and warranties as are by their express terms limited to a prior date).

 

	
b)
	
Without limiting the generality of paragraph 1 above, we hereby further represent and warrant as follows:

 

A) CLAUSE 20.1 – INTEREST COVERAGE

 

	
 

REQUIREMENT: [Adjusted EBITDA : Interest Expense] > [     :     ]

 

	
Adjusted EBITDA:

 
	
USD [   ]

	
Interest Expense:

 
	
USD [   ]

	
Adjusted EBITDA : Interest Expense:

 
	
[     ] : [     ]

	
COMPLIANCE (if applicable for the Quarter)

 
	
[YES] [NO]

 

 

12

 

 

B) CLAUSE 20.2 – CAPITALISATION RATIO

 

	
 

REQUIREMENT: CAPITALISATION RATIO ≤ 60%

 

	
Consolidated Gross Debt

 
	
USD [   ]

	
Shareholders’ Equity

 
	
USD [   ]

	
Consolidated Gross Debt plus Shareholders Equity

 
	
USD [   ]

	
Capitalisation Ratio

 
	
[ % ]

	
COMPLIANCE

 
	
[YES] [NO]

 

 

Our latest financial statements required under the Agreement are attached hereto.

 

C) CLAUSE 20.5 – MINIMUM LIQUIDITY

 

	
 

REQUIREMENT: FREE LIQUID ASSETS GROUP - MINIMUM USD 35,000,000

 

	
Free Liquid Assets:

 
	
USD [   ]

	
COMPLIANCE

 
	
[YES] [NO]

 

 

D) CLAUSE 20.6 – ADJUSTED EBITDA

 

	
 

REQUIREMENT: [Adjusted EBITDA] > [                        ]

 

	
ADJUSTED EBIDTA

 
	
[      ]

	
COMPLIANCE

 
	
[YES] [NO]

 

 

13 

 

 

E) CLAUSE 8.5 / 8.5 A) – FLEET MARKET VALUE OF VESSELS

 

	
 

REQUIREMENT: [(Fleet Market Value /Aggregate Loans) X 100%] > 300%

 

	
Fleet Market Value

 
	
NOK [   ]

	
Aggregate Loans

 
	
Calculated in NOK [   ]

	
[(Fleet Market Value /Aggregate Loans) X 100%]

 
	
[     ]%

	
COMPLIANCE

 
	
[YES] [NO]

	
 

REQUIREMENT: [(Fleet Market Value /Total Commitments) X 100] > 200%

 

	
 

COMPLIANCE

 
	
[YES] [NO]

 

Evidence of the Market Value of each Vessel is attached hereto.

 

 

 

This Compliance Certificate shall be governed by and construed in accordance with Norwegian law.

 

Yours sincerely

for and on behalf of

GULFMARK REDERI AS

 

 

By:                                                                                  

Name: 

Title: [authorised officer]

 

Yours sincerely

for and on behalf of

GULFMARK OFFSHORE INC.

 

 

By:                                                                                  

Name: 

Title: [authorised officer] 

 

 

14Exhibit 10.1

 

830 Winter Street

Waltham, Massachusetts 02451

(the “Building”)

 

THIRD AMENDMENT

 

	
EXECUTION DATE:
    	
 
    	
December 14, 2015
    
	
 
    	
 
    	
 
    
	
LANDLORD:
    	
 
    	
CRP/King 830 Winter, L.L.C., a Delaware limited   liability company, successor-in-interest to Intercontinental Fund III 830   Winter Street, LLC
    
	
 
    	
 
    	
 
    
	
TENANT:
    	
 
    	
ImmunoGen, Inc.
    
	
 
    	
 
    	
a Massachusetts corporation
    
	
 
    	
 
    	
 
    
	
EXISTING
    	
 
    	
 
    
	
PREMISES:
    	
 
    	
Approximately 107,585 rentable square feet of space   in the Building, comprising 1,610 rentable square feet in the basement,   52,487 rentable square feet on the first (1st) floor, 38,511 rentable   square feet on the second (2nd)   floor, 14,126 rentable square feet on the third (3rd) floor, and 851 rentable   square feet on the penthouse roof
    
	
 
    	
 
    	
 
    
	
DATE OF LEASE:
    	
 
    	
July 27, 2007
    
	
 
    	
 
    	
 
    
	
PREVIOUS LEASE
    	
 
    	
 
    
	
AMENDMENTS:
    	
 
    	
First Amendment to Lease Agreement dated   December 9, 2014 (the “First Amendment”)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Second Amendment to Lease Agreement dated   April 28, 2014 (the “Second Amendment”)
    
	
 
    	
 
    	
 
    
	
EXPANSION
    	
 
    	
 
    
	
PREMISES:
    	
 
    	
An area on the first (1st) floor of the Building,   containing 2,450 rentable square feet, substantially as shown on Exhibit A,   Third Amendment, a copy of which is attached hereto
    

 

WHEREAS, Tenant desires to lease additional premises in the Building from Landlord, to wit, the Expansion Premises (as defined above), upon the terms and conditions hereinafter set forth; and

 

WHEREAS, Landlord is willing to lease the Expansion Premises to Tenant upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, the above-described lease, as previously amended (the “Existing Lease”), is hereby further amended as follows (the Existing Lease, as amended hereby, shall hereafter be referred to as the “Lease”).  Any capitalized terms used herein shall have the same

 

1

 

definition as set forth in the Lease, except to the extent otherwise set forth in this Third Amendment.

 

1.                                      DEMISE OF THE EXPANSION PREMISES

 

Landlord hereby demises and leases to Tenant, and Tenant hereby leases from Landlord, the Expansion Premises for a term (the “Expansion Term”) commencing on the Expansion Date, as hereinafter described, and expiring on March 31, 2026 (the “Current Expiration Date”).  The Expansion Premises and the Existing Premises shall collectively be referred to as the “Premises.”  Said demise of the Expansion Premises shall be upon all of the terms and conditions of the Lease applicable to the Existing Premises, except to the extent inconsistent with the terms of this Third Amendment.

 

A.                                    Term Commencement Date.  The Term Commencement Date with respect to the Expansion Premises (the “Expansion Date”) shall be the date that Landlord delivers the Expansion Premises to Tenant with Landlord’s Expansion Premises Work Substantially Complete, as said terms are hereinafter defined, which date is estimated to occur on or about January 1, 2016 (the “Estimated Expansion Date”).  Subject to delays due to Force Majeure and Tenant Delay, each of which terms are hereinafter defined, Landlord shall use all commercially reasonable efforts to deliver the Expansion Premises to Tenant on or before the Estimated Expansion Date with Landlord’s Expansion Premises Work Substantially Complete; however, except as expressly set forth in this Section 1.A, the failure of Landlord to do so shall in no way affect the validity of the Lease, this Third Amendment, or the obligations of Tenant hereunder, and Tenant shall not have any claim against Landlord by reason thereof.  For purposes of this Third Amendment, “Force Majeure” shall be defined as any strike or other labor trouble, fire, flood or other casualty, breakage, accident, repairs, unusually severe weather, governmental preemption of priorities or other controls in connection with a national or other public emergency, governmental moratoria, or inaction of governmental authority (or shortages of fuel, supplies or labor resulting there from), war, civil commotion, labor or transportation difficulties, inability to obtain supplies, or any other cause, whether similar or dissimilar, beyond Landlord’s reasonable control.  The “Expansion Premises Rent Commencement Date” shall be the date that is the earlier of:

 

(x)                                 the date that Tenant commences to use the Expansion Premises (or any portion thereof) for business purposes; and

 

(y)                                 two (2) months after the Expansion Date, except that the Expansion Premises Rent Commencement Date shall be extended for the period of time (if any) that Tenant’s Work is delayed by Landlord Delay (as such term is hereinafter defined).

 

In the event that the Expansion Date does not occur by the Outside Completion Date, as hereinafter defined, then Tenant shall be entitled to an abatement of Fixed Rent equal to $279.03 per day for each day following the Outside Completion Date until the Expansion Date occurs.  The “Outside Completion Date” shall mean the date that is thirty (30) days following the Estimated Expansion Date, provided, however, that the Outside Completion Date shall be extended by the length of any delays in Landlord’s Expansion Premises Work arising from (i) Force Majeure, or (ii) Tenant Delay.

 

2

 

Provided Tenant does not materially interfere with Landlord’s Expansion Premises Work and subject to terms and conditions reasonably determined by Landlord, Tenant shall be permitted reasonable access (at Tenant’s sole risk) to the Expansion Premises prior to the Expansion Date for the sole purpose of taking measurements and evaluating conditions therein for purposes of preparing the Plans (as hereinafter defined).

 

B.                                    Rent.  With respect to the Expansion Premises, Tenant shall pay Fixed Rent and Additional Rent as set forth below:

 

(1)                                 Fixed Rent:  Commencing as of the Expansion Premises Rent Commencement Date and continuing through the Current Expiration Date, as the same may be extended, Tenant shall pay Fixed Rent to Landlord as set forth below:

 

	
Lease Year*
    	
 
    	
Annual Fixed
   Rent
    	
 
    	
Monthly Payment
    	
 
    	
Fixed Rent Per
   Rentable Square
   Foot
    	
 
    
	
Expansion Date —   Day Prior to Rent Commencement Date
    	
 
    	
$
    	
-0-
    	
 
    	
$
    	
-0-
    	
 
    	
$
    	
-0-
    	
 
    
	
Expansion   Premises Rent Commencement Date — End of Lease Year 1
    	
 
    	
$
    	
100,450.00
    	
 
    	
$
    	
8,370.83
    	
 
    	
$
    	
41.00
    	
 
    
	
Lease Year 2
    	
 
    	
$
    	
103,463.50
    	
 
    	
$
    	
8,621.96
    	
 
    	
$
    	
42.23
    	
 
    
	
Lease Year 3
    	
 
    	
$
    	
106,575.00
    	
 
    	
$
    	
8,881.25
    	
 
    	
$
    	
43.50
    	
 
    
	
Lease Year 4
    	
 
    	
$
    	
109,784.50
    	
 
    	
$
    	
9,148.71
    	
 
    	
$
    	
44.81
    	
 
    
	
Lease Year 5
    	
 
    	
$
    	
113,067.50
    	
 
    	
$
    	
9,422.29
    	
 
    	
$
    	
46.15
    	
 
    
	
Lease Year 6
    	
 
    	
$
    	
116,448.50
    	
 
    	
$
    	
9,704.04
    	
 
    	
$
    	
47.53
    	
 
    
	
Lease Year 7
    	
 
    	
$
    	
119,952.00
    	
 
    	
$
    	
9,996.00
    	
 
    	
$
    	
48.96
    	
 
    
	
Lease Year 8
    	
 
    	
$
    	
123,553.50
    	
 
    	
$
    	
10,296.13
    	
 
    	
$
    	
50.43
    	
 
    
	
Lease Year 9
    	
 
    	
$
    	
127,253.00
    	
 
    	
$
    	
10,604.42
    	
 
    	
$
    	
51.94
    	
 
    
	
Lease Year 10
    	
 
    	
$
    	
131,075.00
    	
 
    	
$
    	
10,922.92
    	
 
    	
$
    	
53.50
    	
 
    
	
Beginning of   Lease Year 11 — 3/31/26
    	
 
    	
$
    	
135,019.50
    	
**
    	
$
    	
11,251.63
    	
 
    	
$
    	
55.11
    	
 
    

 

*For purposes hereof, “Lease Year” shall mean a twelve-(12)-month period beginning on the Expansion Premises Rent Commencement Date or an anniversary of the Expansion Premises Rent Commencement Date, except that if the Expansion Premises Rent Commencement Date does not fall on the first day of a calendar month, then the first Lease Year shall begin on the Expansion Premises Rent Commencement Date and end on the last day of the month containing the first anniversary of the Expansion Premises Rent Commencement Date, and each succeeding Lease Year shall begin on the day following the last day of the prior Lease Year.

 

3

 

**Annualized

 

(2)                                 Additional Rent.  Commencing as of the Expansion Premises Rent Commencement Date and continuing through the Current Expiration Date, as the same may be extended, Tenant’s Proportionate Share shall be increased to equal 60.4%. Tenant shall pay Taxes and Operating Expenses in accordance with Sections 4 and 5 of the Lease, respectively.

 

(3)                                 Utilities.  Commencing as of the Expansion Premises Rent Commencement Date and continuing through the Current Expiration Date, as the same may be extended, Tenant shall pay for all utilities provided to the Expansion Premises in accordance with Section 6 of the Lease, and with respect to electricity provided to the Premises, Landlord, at Landlord’s cost, shall install a sub-meter to measure the electrical consumption in the Expansion Premises.

 

C.                                    Condition of Expansion Premises; Construction.  Subject to Landlord’s obligation to perform Landlord’s Expansion Premises Work (hereinafter defined) and to provide Landlord’s Maximum Contribution, Tenant acknowledges and agrees that Tenant is leasing the Expansion Premises in its “AS IS,” “WHERE IS” condition and with all faults on the Execution Date, without representations or warranties (except as set forth in this Section 1.C), express or implied, in fact or by law, of any kind, and without recourse to Landlord.  Landlord represents and warrants that to the best of Landlord’s knowledge, without inquiry, there are no Hazardous Materials in existence, in, on or under the Expansion Premises, which are in violation of applicable Legal Requirements.

 

D.                                    Landlord’s Expansion Premises Work.  Landlord, at Landlord’s sole cost and expense, shall demise the Expansion Premises to shell condition and otherwise in accordance with the Landlord/Tenant Responsibility Matrix, attached hereto and incorporated herein as Exhibit B, Third Amendment, (“Landlord’s Expansion Premises Work”).  Landlord’s architect’s Certificate of Substantial Completion, given in good faith, or any other certification regarding any other facts pertinent to Landlord’s Expansion Premises Work shall be deemed conclusive of the statements therein contained and binding upon Tenant, absent manifest error, provided, however, that if Tenant does not give written notice to Landlord within five (5) business days after Tenant’s receipt of Landlord’s architect’s Certificate of Substantial Completion setting forth with specificity Tenant’s objections to such Certificate, the Certificate shall be deemed to be conclusive and binding upon Tenant.

 

(1)                                 Tenant acknowledges that Landlord’s Expansion Premises Work will be performed during Tenant’s occupancy of certain portions of the Premises adjacent to the Expansion Premises.  Landlord shall use diligent efforts to coordinate Landlord’s Expansion Premises Work with Tenant’s schedule, whenever possible, to minimize disruption to Tenant’s business operations in said portions of the Premises, but there shall be no diminution or abatement of Fixed Rent or Additional Rent or other compensation due from Landlord to Tenant hereunder, nor shall the Lease or this Third Amendment be affected or any of Tenant’s obligations hereunder or thereunder be reduced, and Landlord shall have no responsibility or liability for any inconvenience or disruption to Tenant’s business operations.

 

4

 

(2)                                 A “Tenant Delay” shall be defined as any act or omission by Tenant or any employee, agent, representative, consultant, contractor or subcontractor of Tenant, which causes an actual delay in the completion of Landlord’s Expansion Premises Work.  Notwithstanding the foregoing, no event shall be deemed to be a Tenant Delay until and unless Landlord has given Tenant written notice (the “Tenant Delay Notice”) advising Tenant (i) that a Tenant Delay is occurring, (ii) of the basis on which Landlord has determined that a Tenant  Delay is occurring, and (iii) the actions which Landlord believes that Tenant must take to eliminate such Tenant Delay, and Tenant has failed to correct the Tenant Delay specified in the Tenant Delay Notice within forty-eight (48) hours following receipt of the Tenant Delay Notice (unless, if such Tenant Delay cannot be cured within said forty-eight (48) hours, Tenant has taken steps within said forty-eight (48) hours to correct the Tenant Delay, and diligently completes the same in a reasonable period).  No period of time prior to the expiration of the cure period shall be included in the period of time charged to Tenant pursuant to such Tenant Delay Notice.

 

(3)                                 Punchlist Items.  Promptly following delivery of the Expansion Premises to Tenant with Landlord’s Expansion Premises Work Substantially Complete, Landlord shall provide Tenant with a list (the “Punchlist”) of outstanding items (the “Punchlist Items”) which (a) need to be performed to complete Landlord’s Expansion Premise Work, and (b) do not materially impair Tenant’s ability to commence Tenant’s Work, as hereinafter defined.  Subject to Force Majeure and Tenant Delays, Landlord shall, unless otherwise specified on the Punchlist, complete all Punchlist Items within sixty (60) days of the date of the Punchlist.

 

E.                                     Tenant’s Work.

 

(1)                                 Tenant’s Plans.  In connection with the performance of the work necessary to prepare the Expansion Premises for Tenant’s occupancy and business operations, including without limitation, the work set forth in Exhibit B, Third Amendment, and the installation of all furniture and fixtures and/or any improvements or alterations Tenant desires to make in the Expansion Premises or the Existing Premises (collectively, “Tenant’s Work”), Tenant shall submit to Landlord for Landlord’s approval pursuant to the provisions of Section 11 of the Lease, (i) the name of and other reasonably requested information regarding Tenant’s proposed architect, HVAC and MEP engineers and general contractor; (ii) a set of design/ development plans sufficient for Landlord to approve Tenant’s proposed design of the Premises (the “Design/ Development Plans”), and (iii) a full set of construction drawings (“Final Construction Drawings”) for Tenant’s Work.  The Design/ Development Plans and the Final Construction Drawings are collectively referred to herein as the “Plans.”  Landlord’s approval of the architect, HVAC and MEP engineers and general contractor shall not be unreasonably withheld, conditioned or delayed.  In addition, Landlord shall have the right to require its written approval, which shall not be unreasonably withheld, conditioned, or delayed, of any subcontractors performing any work affecting the structural elements of, or any of the utility or building service equipment or systems in, the Building.  Landlord’s approval of the Design/Development Plans (and the Final Construction Drawings, provided that the Final Construction Drawings are consistent with the Design/Development Plans), shall not be unreasonably withheld, conditioned or delayed provided the Plans comply with the requirements to avoid aesthetic or other conflicts with the design and function of the balance of the Building and the Property.  Landlord’s approval is solely given for the benefit of Landlord and Tenant under this paragraph, and neither

 

5

 

Tenant nor any third party shall have the right to rely upon Landlord’s approval of the Plans for any other purpose whatsoever.  Landlord agrees to respond to any request for approval of the Plans within five (5) business days after receipt thereof.  Landlord hereby approves the conceptual plans with respect to the Expansion Premises as set forth on the attached Exhibit C, and hereby confirms that subject to Landlord’s approval, in accordance with Section 11 of the Lease, of the Final Construction Drawings for Tenant’s Work, Landlord approves said conceptual plans.  Tenant shall have no obligation to remove any Tenant’s Work shown on said conceptual plans; provided, however, that:  (x) Tenant shall, on or before the expiration of the Lease Term, be required to remove all of Tenant’s furniture (including workstations), fixtures, equipment, and personal property from the Premises; except that Tenant may elect to leave in place the snap-in glass conference room and (y) with respect to any future Alterations made to the Premises, the removal of same shall be governed by Section 11.3 of the Lease.

 

(2)                                 Tenant’s Work.  Except for Landlord’s Contribution, as hereinafter defined, Tenant’s Work shall be performed at Tenant’s sole cost and expense.  Notwithstanding anything to the contrary contained in the Lease, Tenant shall be permitted to use its own general contractor and subcontractors to perform Tenant’s Work, which contractors and subcontractors shall be subject to Landlord’s prior approval, which shall not be unreasonably withheld, conditioned or delayed.  Tenant shall, as part of Tenant’s Work, incur at least $40.00 per rentable square foot in Hard Costs, as hereinafter defined, for leasehold improvements in the Expansion Premises.

 

(3)                                 Landlord Delay.  A “Landlord Delay” shall be defined as any act or omission by Landlord or any employee, agent, representative, consultant, contractor or subcontractor of Landlord which causes an actual delay in the completion of Tenant’s Work.  Notwithstanding the foregoing, no event shall be deemed to be a Landlord Delay until and unless Tenant has given Landlord written notice (the “Landlord Delay Notice”) advising Landlord (i) that a Landlord Delay is occurring, (ii) of the basis on which Tenant has determined that a Landlord Delay is occurring, and (iii) the actions which Tenant believes that Landlord must take to eliminate such Landlord Delay, and Landlord has failed to correct the Landlord Delay specified in the Landlord Delay Notice within forty-eight (48) hours following receipt of the Landlord Delay Notice (unless, if such Landlord Delay cannot be cured within said forty-eight (48) hours, Landlord has taken steps within said forty-eight (48) hours to correct the Landlord Delay, and diligently completed the same in a reasonable period).  No period of time prior to expiration of the cure period shall be included in the period of time charged to Landlord pursuant to such Landlord Delay Notice.

 

(4)                                 Cost of Tenant’s Work; Priority of Work.  Except for Landlord’s Contribution (hereinafter defined), all of Tenant’s Work shall be performed at Tenant’s sole cost and expense, and shall be performed in accordance with the provisions of the Lease (including, without limitation, Section 11).

 

F.                                      Landlord’s Contribution.

 

(1)                                 Amount.  Landlord shall, in the manner hereinafter set forth, provide Tenant with up to $196,000.00 (i.e., $80.00 per rentable square foot of the Expansion Premises) (“Landlord’s Maximum Contribution”) to be used to pay for Permitted Costs, as hereinafter

 

6

 

defined, incurred by Tenant in connection with Tenant’s Work.  “Permitted Costs” shall be defined as Hard Costs and Soft Costs, each as hereinafter defined.  “Hard Costs” shall be defined as the cost of acquisition, installation, and performance of leasehold improvements, demolition, and building permits.  “Soft Costs” shall include the costs of furniture (other than any furniture, including without limitation, workstations which Tenant has the obligation to remove from the Premises), fixtures and equipment installed by Tenant in the Expansion Premises and/or Existing Premises, construction management fees, architectural and design fees, and data/telecom cabling.  “Landlord’s Contribution” shall be the lesser of (x) the actual Permitted Costs incurred by Tenant and (y) Landlord’s Maximum Contribution.  Landlord shall receive a construction management fee equal to two percent (2%) of the Hard Costs of Tenant’s Work performed in the Expansion Premises.  Such fee shall be deducted from Landlord’s Maximum Contribution.  For the purposes hereof, Permitted Costs shall not include:  (i) the cost of any furniture, including without limitation, workstations which Tenant has the obligation to remove from the Premises, (ii) the cost of any other property of every kind, nature and description related or arising out of Tenant’s leasehold estate hereunder, which may be in or upon the Premises or the Building, including without limitation telecommunications and computer equipment, artwork, signs, and trade fixtures, except that the cost of fixtures and equipment installed by Tenant in the Expansion Premises and/or Existing Premises shall be included in Soft Costs, (iii) the cost of any fixtures or Alterations that will be removed at the end of the Term, and (iv) any fees paid to Tenant, any Affiliated Entity or Successor.

 

(2)                                 Requisitions.  Subject to paragraph (3) below, Landlord shall pay Landlord’s Proportion (hereinafter defined) of the cost shown on each requisition (hereinafter defined) submitted by Tenant to Landlord within thirty (30) days of submission thereof by Tenant to Landlord until the entirety of Landlord’s Contribution has been exhausted.  “Landlord’s Proportion” shall be a fraction, the numerator of which is Landlord’s Contribution and the denominator of which is the total contract price for Tenant’s Work for the Premises (as evidenced by reasonably detailed documentation delivered to Landlord with the requisition first submitted by Tenant).  A “requisition” shall mean AIA Documents G-702 and G-703 duly executed and certified by Tenant’s architect and general contractor (accompanied by, without limitation, invoices from Tenant’s contractors, vendors, service providers and consultants (collectively, “Contractors”) and partial lien waivers and subordinations of lien, as specified in M.G.L. Chapter 254, Section 32 (“Lien Waivers”) with respect to the prior month’s requisition, and such other documentation as Landlord or any Mortgagee may reasonably request) showing in reasonable detail the costs of the item in question or of the improvements installed to date in the Premises, accompanied by certifications executed by the Chief Executive Officer, Chief Financial Officer, Chief Operations Officer, or Vice President of Tenant that the amount of the requisition in question does not exceed the cost of the items, services and work covered by such requisition.  Notwithstanding the foregoing, Tenant shall not be required to deliver Lien Waivers at the time of the first requisition, but shall deliver the Lien Waivers and evidence of payment of the first requisition in full within five (5) days following payment of Landlord’s Contribution with respect to such first requisition.  Landlord shall have the right, upon reasonable advance notice to Tenant, to inspect Tenant’s books and records relating to each requisition in order to verify the amount thereof.  Tenant shall submit requisition(s) no more often than monthly.

 

(3)                                 Notwithstanding anything to the contrary herein contained:  (i) Landlord shall have no obligation to advance funds on account of Landlord’s Contribution more than once

 

7

 

per month; (ii) if Tenant fails to pay to Tenant’s contractors the amounts paid by Landlord to Tenant in connection with any previous requisition(s), Landlord shall thereafter have the right to have Landlord’s Contribution paid directly to Tenant’s contractors; (iii) Landlord shall have no obligation to pay any portion of Landlord’s Contribution with respect to any requisition submitted after the date (the “Outside Requisition Date”) that is twelve (12) months after the Expansion Date; provided, however, that if Tenant certifies to Landlord that it is engaged in a good faith dispute with any contractor, such Outside Requisition Date shall be extended while such dispute is ongoing, so long as Tenant is diligently prosecuting the resolution of such dispute; (iv) Tenant shall not be entitled to any unused portion of Landlord’s Contribution; and (v) in addition to all other requirements hereof, Landlord’s obligation to pay the final ten percent (10%) of Landlord’s Contribution shall be subject to simultaneous delivery of all Lien Waivers relating to items, services and work performed in connection with Tenant’s Work.

 

(4)                                 Tenant may not use more than $29,400.00 of Landlord’s Contribution to pay for architectural and other design costs.

 

2.                                      PERMITTED USE

 

The Permitted Use for the Expansion Premises shall be general, administrative and executive offices and other customary uses accessory to the foregoing; and for no other purpose.

 

3.                                      PARKING

 

Tenant shall not be entitled to any additional parking spaces with respect to the Expansion Premises.  Without limiting the foregoing, Section 33 of the Lease, as deleted and restated in Section 10 of the First Amendment, shall have no applicability to the Expansion Premises.

 

4.                                      SECURITY DEPOSIT

 

Reference is made to the fact that Landlord is currently holding a Security Deposit in the form of a letter of credit in the amount of $800,000.00 in accordance with the provisions of Section 7.2 of the Lease, as amended by Section 9 of the First Amendment and Section 11 of the Second Amendment.  Landlord shall continue to hold said Security Deposit in the amount of $800,000.00 during the Lease Term, in accordance with the provisions of said Section 7.2 of the Lease, as amended as aforesaid, as security for Tenant’s obligations under the Lease.  Notwithstanding anything to the contrary set forth in Sections 7.2, as amended, in no event shall the Security Deposit in the amount of $800,000.00 be subject to any further reduction during the Lease Term.

 

5.                                      NOTICES

 

From and after the date hereof, Landlord’s notice address set forth in Section 31 of the Lease shall be deleted in its entirety, and the following address shall be substituted therefor:

 

8

 

CRP/King 830 Winter, L.L.C.
  c/o King Street Properties

200 CambridgePark Drive

Cambridge, MA 02140

Attention: Stephen D. Lynch 
 Email: slynch@ks-prop.com

 

With copies to:

 

Goulston & Storrs PC

400 Atlantic Avenue

Boston, MA 02110

Attention: 830 Winter Street

 

6.                                      ADDITIONAL EMERGENCY GENERATOR

 

In addition to Tenant’s use of Tenant’s Generator, as defined in Section 38 of the Lease, Tenant shall have the exclusive right, during the Landlord’s Generator Use Period, as hereinafter defined, to use, in its “as-is”, “where-is” condition, the existing Milton CAT 400 KWH emergency generator, and associated fuel tanks and equipment (collectively, “Landlord’s Generator”) located near the loading dock area to the west of the Building.  Tenant shall, at its own expense, perform any work necessary to connect the generator to Tenant’s existing equipment.  “Landlord’s Generator Use Period” shall commence as of the date that Tenant first commences to use Landlord’s Generator in accordance with the provisions of Section 38 of the Lease and this Section 6 and shall terminate as of the earlier of (x) the expiration or termination of the Term of the Lease, or (y) the date that is sixty (60) days after Tenant provides Landlord with a written termination notice with respect to its use of Landlord’s Generator.  Landlord shall have the right to review and reasonably approve Tenant’s work prior to commencement of construction.  Tenant’s use of Landlord’s Generator shall be on all of the same terms and conditions set forth in Section 38 governing Tenant’s use of Tenant’s Generator, to the extent applicable.  Tenant shall be responsible for insuring Landlord’s Generator as well as for the maintenance and repair thereof throughout the Landlord’s Generator Use Period; however, neither Landlord nor Tenant shall have any obligation to replace Landlord’s Generator.  Without limiting the foregoing, Landlord makes no warranties or representations to Tenant as to the suitability of Landlord’s Generator for Tenant’s use.

 

7.                                      BROKER

 

Tenant and Landlord each warrants and represents that it has dealt with no broker in connection with the consummation of this Third Amendment other than Transwestern (“Landlord’s Broker”) and T3 Advisors (“Tenant’s Broker”).  Tenant and Landlord each agrees to defend, indemnify and save the other harmless from and against any claims arising in breach of the representation and warranty set forth in the immediately preceding sentence.  Landlord shall pay any commission due to Landlord’s Broker pursuant to a separate agreement between Landlord and Landlord’s Broker, and Landlord’s Broker shall pay Tenant’s Broker a leasing commission pursuant to the terms of a separate agreement between Landlord’s Broker and Tenant’s Broker.

 

9

 

8.                                      INAPPLICABLE LEASE PROVISIONS

 

Section 10.1 (Construction) of the Lease; Section 8 and Exhibit C (Additional Construction Allowance) and Exhibit D (Decommission Work) of the First Amendment; and Section 10 and Exhibit A (Third Construction Allowance) of the Second Amendment shall have no applicability with respect to the Expansion Premises and this Third Amendment.

 

9.                                      CONFLICT

 

In the event that any of the provisions of the Lease are inconsistent with this Third Amendment or the state of facts contemplated hereby, the provisions of this Third Amendment shall control.

 

[SIGNATURES ON FOLLOWING PAGE]

 

10

 

EXECUTED under seal as of the date first above written.

 

LANDLORD:

 

CRP/KING 830 WINTER, L.L.C.,

a Delaware limited liability company

 

	
By:
    	
CRP/King 830 Winter Venture, L.L.C.,
    
	
 
    	
a Delaware limited liability company,
    
	
 
    	
its sole Member
    
	
 
    	
 
    
	
 
    	
By:
    	
King Munson LLC,
    
	
 
    	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    	
a Member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
King Street Properties Investments LLC,
    
	
 
    	
 
    	
 
    	
a Massachusetts limited liability company,
    
	
 
    	
 
    	
 
    	
its Manager
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen D.   Lynch
    	
 
    
	
 
    	
 
    	
Name:
    	
Stephen D. Lynch
    	
 
    
	
 
    	
 
    	
Title:
    	
Manager
    	
 
    
								

 

TENANT:

 

IMMUNOGEN, INC.,
 a Massachusetts corporation

 

	
By:
    	
/s/ David B. Johnston
    	
 
    
	
 
    	
Name:
    	
David   B. Johnston
    	
 
    
	
 
    	
Title:
    	
CFO
    	
 
    

 

CONSENT OF MORTGAGE

 

The undersigned hereby consents to the foregoing Third Amendment and agrees that the Subordination Agreement, Acknowledgement of Lease Assignment, Estoppel, Attornment and Non-Disturbance Agreement dated July 20, 2015, among the parties remains in full force and effect with respect to the Lease, as amended by the foregoing Third Amendment.

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas S. Novitch
    
	
 
    	
 
    	
Name:
    	
Douglas   S. Novich
    
	
 
    	
 
    	
Title:
    	
SVP
    

 

11

 

EXHIBIT A, THIRD AMENDMENT

 

EXPANSION PREMISES

 

See attached.

 

 

EXHIBIT B, THIRD AMENDMENT

 

LANDLORD/TENANT RESPONSIBILITY MATRIX

 

See attached.

 

 

EXHIBIT C, THIRD AMENDMENT

 

CONCEPTUAL PLANS

 

See attached.

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