Document:

Exhibit 10.1 

	
 

	
Date 14 March 2008

	
 

	
GAS-ONE LTD.

	
as Borrower

	
 

	
- and -

	
 

	
THE BANKS AND
FINANCIAL INSTITUTIONS

	
listed in Schedule 1

	
as Lenders

	
 

	
- and -

	
 

	
DANISH SHIP FINANCE
A/S (DANMARKS SKIBSKREDIT A/S)

	
as Agent

	
and as Security Trustee

	
 

	

	
 

	
LOAN AGREEMENT

	
as amended and
restated by an

	
Amending and
Restating Agreement dated 9 March 2012

	
 

	

	
 

	
relating to a facility of up to
US$174,033,000

to finance the 154,800 cubic meter Liquefied Natural Gas Carrier

under construction at

Samsung Heavy Industries Co., Ltd. having Hull No. 1641

	
 

	
WATSON, FARLEY &
WILLIAMS

	
Piraeus

INDEX

	
 

	
 

	
 

	
Clause

	
Page

	
 

	
 

	
 

	
1

	
INTERPRETATION

	
1 

	
 

	
 

	
 

	
2

	
FACILITY

	
15 

	
 

	
 

	
 

	
3

	
POSITION OF THE LENDERS

	
15 

	
 

	
 

	
 

	
4

	
DRAWDOWN

	
15 

	
 

	
 

	
 

	
5

	
INTEREST

	
17 

	
 

	
 

	
 

	
6

	
INTEREST PERIODS

	
18 

	
 

	
 

	
 

	
7

	
DEFAULT INTEREST

	
19 

	
 

	
 

	
 

	
8

	
REPAYMENT AND PREPAYMENT

	
20 

	
 

	
 

	
 

	
9

	
CONDITIONS PRECEDENT

	
21 

	
 

	
 

	
 

	
10

	
REPRESENTATIONS AND WARRANTIES

	
22 

	
 

	
 

	
 

	
11

	
GENERAL UNDERTAKINGS

	
24 

	
 

	
 

	
 

	
12

	
CORPORATE UNDERTAKINGS

	
32 

	
 

	
 

	
 

	
13

	
INSURANCE

	
33 

	
 

	
 

	
 

	
14

	
SHIP COVENANTS

	
36 

	
 

	
 

	
 

	
15

	
SECURITY COVER

	
40 

	
 

	
 

	
 

	
16

	
PAYMENTS AND CALCULATIONS

	
41 

	
 

	
 

	
 

	
17

	
APPLICATION OF RECEIPTS

	
43 

	
 

	
 

	
 

	
18

	
APPLICATION OF EARNINGS

	
43 

	
 

	
 

	
 

	
19

	
EVENTS OF DEFAULT

	
45 

	
 

	
 

	
 

	
20

	
FEES AND EXPENSES

	
50 

	
 

	
 

	
 

	
21

	
INDEMNITIES

	
51 

	
 

	
 

	
 

	
22

	
NO SET-OFF OR TAX DEDUCTION

	
52 

	
 

	
 

	
 

	
23

	
ILLEGALITY, ETC

	
53 

	
 

	
 

	
 

	
24

	
INCREASED COSTS

	
54 

	
 

	
 

	
 

	
25

	
SET-OFF

	
55 

	
 

	
 

	
 

	
26

	
TRANSFERS AND CHANGES IN LENDING OFFICES

	
56 

	
 

	
 

	
 

	
27

	
VARIATIONS AND WAIVERS

	
59 

	
 

	
 

	
 

	
28

	
NOTICES

	
60 

	
 

	
 

	
 

	
29

	
SUPPLEMENTAL

	
61 

	
 

	
 

	
 

	
30

	
LAW AND JURISDICTION

	
62 

	
 

	
 

	
 

	
SCHEDULE 1 LENDERS AND COMMITMENTS

	
63 

	
 

	
 

	
 

	
SCHEDULE 2 DRAWDOWN NOTICE

	
64 

	
 

	
 

	
 

	
SCHEDULE 3 CONDITION PRECEDENT DOCUMENTS

	
65 

	
 

	
 

	
 

	
SCHEDULE 4 TRANSFER CERTIFICATE

	
69 

	
 

	
 

	
 

	
SCHEDULE 5 LIST OF LNG SHIPBROKERS

	
72 

	
 

	
 

	
 

	
SCHEDULE 6 FORM OF COMPLIANCE CERTIFICATE

	
73 

	
 

	
 

	
 

	
EXECUTION PAGE

	
75 

THIS AGREEMENT is
made on 14 March 2008 as amended and restated by an Amending and Restating
Agreement dated 9 March 2012

BETWEEN

	
 

	
 

	
(1)

	
GAS-ONE LTD., a
company incorporated in Bermuda whose registered office is at Clarendon
House, 2 Church Street, Hamilton HM11, Bermuda (the “Borrower”);

	
 

	
 

	
(2)

	
THE BANKS AND
FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders;

	
 

	
 

	
(3)

	
DANISH SHIP FINANCE A/S (DANMARKS SKIBSKREDIT A/S), as Agent; and

	
 

	
 

	
(4)

	
DANISH SHIP FINANCE A/S (DANMARKS SKIBSKREDIT A/S), as Security Trustee.  

	
 

	
 

	
BACKGROUND

	
 

	
 

	
(A)

	
By a loan agreement dated 14 March
2008 and made between (i) the Borrower, (ii) the Lenders, (iii) the Agent and
(iv) the Security Trustee, the Lenders have agreed to make available to the
Borrower a facility of up to $174,033,000 for the purpose of financing 75 per
cent. of the Project Cost of a 154,800 cubic meter Liquified Natural Gas
carrier currently having Builder’s Hull No. 1641 which is to be constructed
by the Builder for, and purchased by, the Borrower.

	
 

	
 

	
(B)

	
By the Amending and Restating
Agreement, the Lenders and the Borrower have agreed to certain amendments to
the Loan Agreement and the other Finance Documents.

	
 

	
 

	
(C)

	
This Agreement sets out the terms and
conditions of the Loan Agreement as amended and restated by the Amending and
Restating Agreement.

	
 

	
 

	
IT IS AGREED as
follows:

	
 

	
 

	
1

	
INTERPRETATION

	
 

	
 

	
1.1 

	
Definitions. Subject
to Clause 1.5, in this Agreement:

	
 

	
 

	
 

	
 “Account Bank” means
DnB NOR acting through its office at 20 St. Dunstan’s Hill, London EC3R 8HY,
England;

	
 

	
 

	
 

	
 “Accounts Security
Deed” means a deed creating security in respect of the Earnings
Account and the Retention Account in the Agreed Form;

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 “Affected Lender” has
the meaning given in Clause 5.5;

	
 

	
 

	
 

	
 “Agency and Trust
Agreement” means the agency and trust agreement
dated 14 March 2008 executed between the Borrower, the Lenders, the Agent and
the Security Trustee as amended and restated by the Amending and Restating
Agreement;

	
 

	
 

	
 

	
 “Agent” means
Danish Ship Finance A/S (Danmarks Skibskredit A/S), acting in such capacity
through its office at Sankt Annae Plads 3, DK-1250, Copenhagen K., Denmark,
or any successor of it appointed under clause 5 of the Agency and Trust
Agreement;

	
 

	
 

	
 

	
“Agreed Form” means,
in relation to any document, that document in the form approved in writing by
the Agent (acting upon the instructions of all the Lenders) or as otherwise

	
 

	
 

	
 

	
 

	
approved in accordance with any other
approval procedure specified in any relevant provision of any Finance
Document;

	
 

	
 

	
 

	
 

	
 “Amending and
Restating Agreement” means the amending and restating
agreement dated 9 March 2012
and made between inter alia (i) the Borrower, (ii) the Lenders, (iii) the
Agent and (iv) the Security Trustee setting out the terms and conditions upon
which this Agreement has been amended and restated;

	
 

	
 

	
 

	
 

	
 “Applicable Interest
Rate” means:

	
 

	
 

	
 

	
 

	
(a)

	
at all times during a Fixed Rate
Period, the relevant Fixed Interest Rate; and

	
 

	
 

	
 

	
 

	
(b)

	
at any time other than during a Fixed
Rate Period, LIBOR;

	
 

	
 

	
 

	
 

	
 “Approved Charter” means
the time charter dated 19 August 2008 and entered into between the Borrower
and the Approved Charterer;

	
 

	
 

	
 

	
 

	
 “Approved Charterer”
means Methane Services Ltd., a company incorporated in
England and Wales with its registered office at 100 Thames Valley Park Drive,
Reading, Berkshire RG6 1PT, United Kingdom which is a subsidiary of BG Group
plc.;

	
 

	
 

	
 

	
 

	
 “Approved Flag” means
any of the Bermuda, Greek, Marshall Islands, Panamanian, Cyprus, Maltese or
Bahamas flags or any other flag as the Lenders may, in their absolute
discretion, approve as the flag on which the Ship may be registered;

	
 

	
 

	
 

	
 

	
 “Approved Flag
State” means any of Bermuda, Greece, Marshall Islands, Panama,
Cyprus, Malta, Bahamas or any other country in which the Lenders may, in
their absolute discretion, approve that the Ship may be registered;

	
 

	
 

	
 

	
 

	
 “Approved Manager” means
GasLog LNG Services Ltd, a company incorporated in Bermuda whose registered
office is at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda or any
other company which the Agent may, with the authorisation of the Majority
Lenders, approve from time to time as the commercial and/or technical manager
of the Ship;

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
(a)

	
10 December 2010 (or such later date
as the Agent may, with the authorisation of the Majority Lenders, agree with
the Borrower); or

	
 

	
 

	
 

	
 

	
(b)

	
if earlier, the date on which the
Total Commitments are fully borrowed, cancelled or terminated;

	
 

	
 

	
 

	
 

	
 “Builder” means
Samsung Heavy Industries Co., Ltd., a corporation incorporated in the
Republic of Korea whose registered office is at 11th Floor, KIPS Center,
647-9 Yeoksam-Dong, Kangnam-Gu, Seoul, Korea;

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 “Change of Control” means,
in relation to GasLog, if any person or persons acting in concert other than
(i) Counter-Guarantor 2 or its associates (acting through the Holding
Company), (ii) Counter-Guarantor 1 or its associates (acting through the
Holding Company) or (iii) a Passive Financial Institution:

2

	
 

	
 

	
 

	
 

	
(a)

	
acquires
legally and/or beneficially, and either directly or indirectly, in excess of
the issued share capital of GasLog (or such other public vehicle owning the
Borrower) held by the Holding Company; or

	
 

	
 

	
 

	
 

	
(b)

	
has
the right or the ability to control, either directly or indirectly, the
affairs or composition of the majority of the board of directors (or
equivalent) of GasLog (or such other public vehicle owning the Borrower),

	
 

	
 

	
 

	
 

	
in
either case, without the prior written consent of the Agent (acting with the
authorisation of the Majority Lenders);

	
 

	
 

	
 

	
 

	
 “Commitment” means, in relation to a
Lender, the amount set opposite its name in Schedule 1 as that amount may be
reduced, cancelled or terminated in accordance with this Agreement (and “Total Commitments” means the aggregate
of the Commitments of all the Lenders);

	
 

	
 

	
 

	
 

	
 “Contract Price” means $214,750,000, being the
aggregate amount payable by the Borrower to (a) the Original Buyer pursuant
to the Transfer Agreement and (b) the Builder pursuant to the Shipbuilding
Contract;

	
 

	
 

	
 

	
 

	
 “Contractual Currency” has
the meaning given in Clause 21.4;

	
 

	
 

	
 

	
 

	
 “Contribution” means, in relation to a
Lender, the part of the Loan which is owing to that Lender;

	
 

	
 

	
 

	
 

	
 “Counter-Guarantee” means,
in relation to a Counter-Guarantor, the counter-guarantee in the Agreed Form
executed or to be executed by that Counter-Guarantor in favour of the
Security Trustee in respect of the obligations and liabilities of GasLog and
GasLog Carriers under the Guarantees to which they are party and, in the
plural, means both such Counter-Guarantees;

	
 

	
 

	
 

	
 

	
 “Counter-Guarantor 1” means
the company identified in the letter referred to in clause 3.2(k)(ii) of the
Amending and Restating Agreement;

	
 

	
 

	
 

	
 

	
 “Counter-Guarantor 2” means the company identified in the letter referred to in clause 3.2(k)(iii)
of the Amending and Restating Agreement;

	
 

	
 

	
 

	
 

	
 “Counter-Guarantors” means
Counter-Guarantor 1 and Counter-Guarantor 2 and, in the singular, means
either of them;

	
 

	
 

	
 

	
 

	
 “Creditor Party” means the Agent, the Security
Trustee or any Lender, whether as at the date of this Agreement or at any
later time;

	
 

	
 

	
 

	
 

	
 “Delivery Date” means the date on which the
Ship is actually delivered to the Borrower in accordance with the
Shipbuilding Contract;

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 “Drawdown Notice” means a notice in the form set
out in Schedule 2 (or in any other form which the Agent approves or
reasonably requires);

3

	
 

	
 

	
 

	
 

	
 

	
 “Earnings” means
all moneys whatsoever which are now, or later become, payable (actually or
contingently) to the Borrower or the Security Trustee and which arise out of
the use or operation of the Ship, including (but not limited to):

	
 

	
 

	
 

	
(a)

	
except to the extent that they fall
within paragraph (b); 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
all freight, hire and passage moneys;

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
compensation payable to the Borrower
or the Security Trustee in the event of requisition of the Ship for hire;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
remuneration for salvage and towage
services;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
demurrage and detention moneys;

	
 

	
 

	
 

	
 

	
 

	
 

	
(v)

	
damages for breach (or payments for
variation or termination) of any charterparty or other contract for the
employment of the Ship; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(vi)

	
all moneys which are at any time
payable under any Insurances in respect of loss of hire; and

	
 

	
 

	
 

	
 

	
 

	
(b)

	
if and whenever the Ship is employed
on terms whereby any moneys falling within paragraphs (a)(i) to (vi) are
pooled or shared with any other person, that proportion of the net receipts
of the relevant pooling or sharing arrangement which is attributable to the
Ship;

	
 

	
 

	
 

	
 

	
 

	
 “Earnings Account” means
an account in the name of the Borrower with the Account Bank in London with
account number 63612001, or any other account (with that or another office of
the Account Bank or with a bank or financial institution other than the
Account Bank) which is designated by the Agent as the Earnings Account for
the purposes of this Agreement;

	
 

	
 

	
 

	
 

	
 

	
 “Environmental
Claim” means:

	
 

	
 

	
 

	
 

	
 

	
(a)

	
any claim by any governmental,
judicial or regulatory authority which arises out of an Environmental
Incident or an alleged Environmental Incident or which relates to any
Environmental Law; or

	
 

	
 

	
 

	
 

	
 

	
(b)

	
any claim by any other person which
relates to an Environmental Incident or to an alleged Environmental Incident,

	
 

	
 

	
 

	
 

	
 

	
and “claim”
means a claim for damages, compensation, fines, penalties or any
other payment of any kind whether or not similar to the foregoing; an order
or direction to take, or not to take, certain action or to desist from or
suspend certain action; and any form of enforcement or regulatory action,
including the arrest or attachment of any asset;

	
 

	
 

	
 

	
 

	
 

	
 “Environmental
Incident” means:

	
 

	
 

	
 

	
 

	
 

	
(a)

	
any release of Environmentally
Sensitive Material from the Ship; or

	
 

	
 

	
 

	
 

	
 

	
(b)

	
any incident in which Environmentally
Sensitive Material is released from a vessel other than the Ship and which
involves a collision between the Ship and such other vessel or some other
incident of navigation or operation, in either case, in connection with which
the Ship is actually liable to be arrested, attached, detained or injuncted
and/or the Ship and/or the Borrower and/or any operator or manager of the
Ship is at fault or otherwise liable to any legal or administrative action in
connection with the operation of the Ship; or

4

	
 

	
 

	
 

	
 

	
(c)

	
any other incident in which
Environmentally Sensitive Material is released otherwise than from the Ship
and in connection with which the Ship is actually or liable to be arrested
and/or where the Borrower and/or any operator or manager of the Ship is at
fault or otherwise liable to any legal or administrative action in connection
with the operation of the Ship;

	
 

	
 

	
 

	
 

	
 “Environmental Law” means
any law relating to pollution or protection of the environment, to the
carriage of Environmentally Sensitive Material or to actual or threatened
releases of Environmentally Sensitive Material;

	
 

	
 

	
 

	
 

	
 “Environmentally
Sensitive Material” means oil, oil products and any other
substance (including any chemical, gas or other hazardous or noxious
substance) which is (or is capable of being or becoming) polluting, toxic or
hazardous;

	
 

	
 

	
 

	
 

	
 “Event of Default” means
any of the events or circumstances described in Clause 19.1;

	
 

	
 

	
 

	
 

	
 “Extra Pre-delivery
Costs” means an amount of $17,294,000 representing the costs
incurred or to be incurred by the Borrower during the construction of the
Ship (in addition to the Contract Price of the Ship);

	
 

	
 

	
 

	
 

	
 “Finance Documents” means:

	
 

	
 

	
 

	
 

	
(a)

	
this Agreement;

	
 

	
 

	
 

	
 

	
(b)

	
the Amending and Restating Agreement;

	
 

	
 

	
 

	
 

	
(c)

	
the Agency and Trust Agreement;

	
 

	
 

	
 

	
 

	
(d)

	
the Fixed Interest Agreements;

	
 

	
 

	
 

	
 

	
(e)

	
the Guarantees;

	
 

	
 

	
 

	
 

	
(f)

	
the Counter-Guarantees;

	
 

	
 

	
 

	
 

	
(g)

	
the Predelivery Security Assignment;

	
 

	
 

	
 

	
 

	
(h)

	
the General Assignment;

	
 

	
 

	
 

	
 

	
(i)

	
the Mortgage;

	
 

	
 

	
 

	
 

	
(j)

	
the Accounts Security Deed; and

	
 

	
 

	
 

	
 

	
(k)

	
any other document (whether creating
a Security Interest or not) which is executed at any time by the Borrower or
any other person as security for, or to establish any form of subordination
or priorities arrangement in relation to, any amount payable to the Lenders
under this Agreement or any of the other documents referred to in this
definition;

	
 

	
 

	
 

	
 

	
 “Financial
Indebtedness” means, in relation to a person (the “debtor”), a liability of the debtor:

	
 

	
 

	
 

	
 

	
(a)

	
for principal, interest or any other
sum payable in respect of any moneys borrowed or raised by the debtor;

	
 

	
 

	
 

	
 

	
(b)

	
under any loan stock, bond, note or
other security issued by the debtor;

	
 

	
 

	
 

	
 

	
(c)

	
under any acceptance credit,
guarantee or letter of credit facility or dematerialised equivalent made
available to the debtor;

5

	
 

	
 

	
 

	
 

	
(d)

	
under a financial lease, a deferred
purchase consideration arrangement or any other agreement having the
commercial effect of a borrowing or raising of money by the debtor;

	
 

	
 

	
 

	
 

	
(e)

	
under any foreign exchange
transaction, any interest or currency swap or any other kind of derivative
transaction entered into by the debtor or, if the agreement under which any
such transaction is entered into requires netting of mutual liabilities, the
liability of the debtor for the net amount; or

	
 

	
 

	
 

	
 

	
(f)

	
under a guarantee, indemnity or
similar obligation entered into by the debtor in respect of a liability of
another person which would fall within paragraphs (a) to (e) if the references
to the debtor referred to the other person;

	
 

	
 

	
 

	
 

	
 “Fixed Interest
Agreement” means:

	
 

	
 

	
 

	
 

	
(a)

	
in the case of Tranche A, together,
the Borrower’s request to the Agent dated 21 July 2008 to fix the interest
rate for the Tranche A and the Agent’s confirmation to the Borrower dated 11
September 2008 of the Fixed Interest Rate and Fixed Interest Period
applicable to Tranche A; and

	
 

	
 

	
 

	
 

	
(b)

	
in the case of Tranche B, together,
the Borrower’s request to the Agent dated 27 October 2011 to fix the interest
rate for Tranche B and the Agent’s confirmation to the Borrower dated 31
October 2011 of the Fixed Interest Rate and the Fixed Interest Period
applicable to Tranche B;

	
 

	
 

	
 

	
 

	
 “Fixed Interest
Rate” means:

	
 

	
 

	
 

	
 

	
(a)

	
in the case of Tranche A, (i) 3.84
per cent. per annum for the Initial Fixing Period and (ii) such rate per
annum to be advised by the Agent to the Borrower pursuant to Clause 5.14 for
any other Fixing Period;

	
 

	
 

	
 

	
 

	
(b)

	
in the case of Tranche B, 2.10 per
cent. per annum. 

	
 

	
 

	
 

	
 

	
“Fixed Rate Period” means:

	
 

	
 

	
 

	
 

	
(a)

	
in the case of Tranche A, (i) the
period commencing on 30 September 2008 and ending on 28 August 2013 (the “Initial Fixing Period”) and (ii) any
other period for which Tranche A may be fixed pursuant to Clause 5.14 for
interest purposes (the “Other Fixing
Period”); and

	
 

	
 

	
 

	
 

	
(b)

	
in the case of Tranche B, the period
commending on 28 November 2011 and ending on 28 May 2020 (being the final
Repayment Date);

	
 

	
 

	
 

	
 

	
 “GAAP” means
generally accepted accounting principles in the United States of America established
by the Financial Accounting Standards Board (FASB) including IFRS;

	
 

	
 

	
 

	
 

	
 “GasLog” means
GasLog Ltd., an exempted company incorporated under the laws of Bermuda whose
registered office is at Clarendon House, 2 Church Street, Hamilton HM11,
Bermuda;

	
 

	
 

	
 

	
 

	
 “GasLog Carriers” means
GasLog Carriers Ltd., an exempted company incorporated under the laws of
Bermuda whose registered office is at Clarendon House, 2 Church Street,
Hamilton HM11, Bermuda;

	
 

	
 

	
 

	
 

	
 “General Assignment”
means a general assignment of the Earnings, the Insurances
and any Requisition Compensation dated 31 May 2010 made between (i) the
Borrower and (ii) the Security Trustee as amended and restated pursuant to
the Amending and Restating Agreement;

6

	
 

	
 

	
 

	
 

	
 “Guarantee” means,
in relation to GasLog or GasLog Carriers, the guarantee in the Agreed Form
executed or to be executed by that Guarantor in favour of the Security
Trustee and, in the plural, means both such Guarantees;

	
 

	
 

	
 

	
 

	
 “Guarantors” means:

	
 

	
 

	
 

	
 

	
(a)

	
prior to the date of a Qualified IPO,
together, the Counter-Guarantors, GasLog and GasLog Carriers; and

	
 

	
 

	
 

	
 

	
(b)

	
following the date of a Qualified IPO
together, GasLog and GasLog Carriers,

	
 

	
 

	
 

	
 

	
and in the singular means any one of
them;

	
 

	
 

	
 

	
 

	
 “Holding Company” means
the company identified in the letter referred to in clause 3.2(k)(i) of the
Amending and Restating Agreement;

	
 

	
 

	
 

	
 

	
 “IFRS” means
international accounting standards adopted by the International Accounting
Standard Board (IASB) within the meaning of the IAS Regulations 1606/2002 to
the extent applicable to the relevant financial statements;

	
 

	
 

	
 

	
 

	
 “Insurances” means:

	
 

	
 

	
 

	
 

	
(a)

	
all policies and contracts of
insurance, including entries of the Ship in any protection and indemnity or
war risks association, which are effected in respect of the Ship, its
Earnings or otherwise in relation to it; and

	
 

	
 

	
 

	
 

	
(b)

	
all rights and other assets relating
to, or derived from, any of the foregoing, including any rights to a return
of a premium;

	
 

	
 

	
 

	
 

	
 “Interest Period” means
a period determined in accordance with Clause 6;

	
 

	
 

	
 

	
 

	
 “ISM Code” means
the International Safety Management Code (including the guidelines on its
implementation), adopted by the International Maritime Organisation, as the
same may be amended or supplemented from time to time (and the terms “safety management system”, “Safety Management
Certificate” and “Document of
Compliance” have the same meanings as are given to them in the ISM
Code);

	
 

	
 

	
 

	
 

	
 “ISPS Code” means
the International Ship and Port Facility Security Code as adopted by the
International Maritime Organisation, as the same may be amended or
supplemented from time to time;

	
 

	
 

	
 

	
 

	
“ISSC” means a valid and current
International Ship Security Certificate issued under the ISPS Code; 

	
 

	
 

	
 

	
 

	
 “Lender” means
a bank or financial institution listed in Schedule 1 and acting through its
branch indicated in Schedule 1 (or through another branch notified to the
Borrower under Clause 26.14) or its successor or assign;

	
 

	
 

	
 

	
 

	
 “LIBOR” means,
in relation to any period for which an interest rate is to be determined
under any provision of a Finance Document:

	
 

	
 

	
 

	
 

	
(a)

	
the rate per annum
equal to the offered quotation for deposits in Dollars for a period equal to,
or as near as possible equal to, that period which appears on REUTERS BBA
Page LIBOR 01 at or about 11.00 a.m. (London time) on the Quotation Date for
that period (and, for the purposes of this Agreement, “REUTERS BBA Page LIBOR
01” means the display designated as “Page 01” on the REUTERS Service or such
other page as may replace Page 01 on that service for the purpose of

7

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 displaying
 rates comparable to that rate or on such other service as may be nominated
 by the British Bankers’ Association as the information vendor for the purpose
 of displaying British Bankers’ Association Interest Settlement Rates for
 Dollars); or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 if
 no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum determined
 by the Agent to be the arithmetic mean (rounded upwards, if necessary, to the
 nearest one-sixteenth of one per cent.) of the rates per annum notified to
 the Agent by each Lender as the rate at
 which deposits in Dollars are offered to that Lender by leading banks
 in the London Interbank Market at that Lender’s request at or about 11.00 a.m. (London time) on the
 Quotation Date for that period for a period equal to that period and
 for delivery on the first Business Day of it;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Major Casualty” means any casualty to the Ship in respect of which the claim or the aggregate
 of the claims against all insurers, before adjustment for any relevant
 franchise or deductible, exceeds $1,000,000 or the equivalent in any other
 currency;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Majority Lenders” means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 before
 an Advance has been made, Lenders whose Commitments total 66.66 per cent.
 of the Total Commitments; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 after
 an Advance has been made, Lenders whose Contributions total 66.66 per cent. of the Loan;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Margin” means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 at all times until (and
 including) 30 October 2011, 0.625 per cent. per annum; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 from
 31 October 2011 and at all times thereafter, 1.6 per cent. per annum;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Mortgage” means together, the first
 priority Bermuda statutory mortgage on the Ship dated 31 May 2010 executed by the Borrower in favour
 of the Security Trustee and the deed of covenant collateral thereto
 dated the same date made between (i) the Borrower and (ii) the Security
 Trustee as amended and restated pursuant to the Amending and Restating Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Negotiation Period” has the meaning given in Clause 5.8;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Notifying Lender” has the meaning given in Clause 23.1 or Clause
 24.1 as the context requires;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Novation
 Agreement” means the novation agreement to be made between
 the Builder, the Original Buyer and the
 Borrower in respect of the novation of the Shipbuilding Contract to
 the Borrower as buyer;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Original Buyer” means Chevron Transport Corporation Ltd., a corporation organised and existing under the laws of Bermuda and having
 its registered office at 11 Church Street, Hamilton, HM11, Bermuda;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Passive
 Financial Institution” means a bank or financial
 institution or a wholly owned direct or
 indirect subsidiary of a bank or financial institution which:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 does
 not have the right or the ability to control, either directly or indirectly,
 the affairs or composition of the majority of the board of directors
 (or equivalent) of GasLog (or such other
 public vehicle owning the Borrower) nor the right or ability

 

8

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 to otherwise control the affairs and policies of
 GasLog (or such other public vehicle owning the Borrower); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 is not acting in concert with
 any other direct or indirect legal or beneficial shareholder of GasLog
 (or such other public vehicle owning the Borrower),

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 provided that the
 Counter-Guarantors have control of the board of directors of GasLog; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Payment
 Currency” has the
 meaning given in Clause 21.4; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Pertinent
 Document” means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any policy or contract of
 insurance contemplated by or referred to in Clause 13 or in any other
 provision of this Agreement or another Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any other document contemplated by or referred to in
 any Finance Document; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any document which has been or
 is at any time sent by or to a Servicing Bank in contemplation of or in connection with any
 Finance Document or any policy, contract or document falling within
 paragraphs (b) or (c);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Pertinent
 Jurisdiction”, in
 relation to a company, means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 England and Wales;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the country under the laws of which the company is
 incorporated or formed;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 a country in which the company
 has the centre of its main interests or in which the company’s central
 management and control is or has recently been exercised;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 a country in which the overall
 net income of the company is subject to corporation tax, income tax or
 any similar tax;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 a country in which assets of
 the company (other than securities issued by, or loans to, related companies) having a substantial
 value are situated, in which the company maintains a branch or
 permanent place of business, or in which a Security Interest created by the company must or should be
 registered in order to ensure its validity or priority; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 a country the courts of which
 have jurisdiction to make a winding up, administration or similar order in relation to the company whether as
 main or territorial or ancillary
 proceedings or which would have such jurisdiction if their assistance
 were requested by the courts of a country referred to in paragraphs (b) or (c);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Pertinent
 Matter” means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any transaction or matter
 contemplated by, arising out of, or in connection with a Pertinent Document; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any statement relating to a
 Pertinent Document or to a transaction or matter falling within
 paragraph (a),

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and covers any such transaction, matter or
 statement, whether entered into, arising or made at any time before the signing of this Agreement or on or at any time
 after that signing;

 

9

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Potential
 Event of Default” means an event or circumstance which,
 with the giving of any notice, the lapse
 of time, a reasonable determination of the Majority Lenders and/or the satisfaction
 of any other condition, would constitute an Event of Default;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Predelivery
 Security Assignment” means an assignment of the
 Shipbuilding Contract and of the Refund
 Guarantee dated 14 April 2008 made between (i) the Borrower and (ii) the
 Security Trustee;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Project Cost” means the amount of $232,044,000 representing the aggregate of the Contract
 Price and the Extra Pre-delivery Costs for the Ship;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Qualified IPO” means an initial public offering by GasLog of its common stock on NASDAQ,
 NYSE and/or another reputable stock exchange approved by the Agent acting
 with the consent of the Lenders (such consent not to be unreasonably withheld
 or delayed), where:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 such
 offering has been structured in form and substance satisfactory to the Agent acting with the consent of the Lenders (such
 consent not to be unreasonably withheld
 or delayed);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 such
 offering has resulted in net cash proceeds of at least $150,000,000 received
 by GasLog; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the shares of such
 offering have been listed, issued and are trading for the first time on the
 relevant stock exchange;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Quotation
 Date” means, in relation to any period for which an
 interest rate is to be determined under any provision of a Finance Document,
 the day which is 2 Business Days before
 the first day of that period, unless market practice differs in the London
 Interbank Market for a currency,
 in which case the Quotation Date will be determined by the Agent in accordance
 with market practice in the London Interbank Market (and if quotations would
 normally be given by leading banks in the London Interbank Market on more
 than one day, the Quotation Date will be the last of those days);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Refund Guarantee” means an irrevocable guarantee numbered M0902-505-LG-00025
 dated 6 May 2005 issued by the Refund Guarantor in favour of the
 Original Buyer under the Shipbuilding
 Contract as the same will be assigned by the Original Buyer to the Borrower pursuant to an assignment agreement to
 be made between the Original Buyer and the Borrower (with such
 assignment being acknowledged by the Refund Guarantor);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Refund Guarantor” means The Export-Import Bank of Korea, a
 company incorporated in the Republic of Korea whose registered office
 is at 16-2, Yoido-Dong, Yeongdeungo-Gu,
 Seoul 150 996, Korea;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Relevant Person” has the meaning given in Clause 19.9;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Repayment Date” means a date on which a repayment is required to be made under Clause 8;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Replacement Charter” means any charter approved by the Lenders entered
 into between the Borrower and a
 charterer which is acceptable to the Lenders, on terms similar to, or
 better than, the Approved Charter;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Requisition Compensation” includes all compensation or other moneys
 payable by reason of any act or event such as is referred to in
 paragraph (b) of the definition of “Total Loss”;

 

10

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Retention Account” means
 an account in the name of the Borrower with the Account Bank in London with account number 63612006, or
 any other account (with that or another office of the Account Bank or with a bank or financial institution
 other than the Account Bank) which is designated by the Agent as the
 Retention Account for the purposes of this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Secured Liabilities” means
 all liabilities which the Borrower, the Security Parties or any of them have, at the date of this Agreement or
 at any later time or times, under or in connection with any Finance Document or any judgment relating to any
 Finance Document; and for this purpose, there shall be disregarded any
 total or partial discharge of these liabilities,
 or variation of their terms, which is effected by, or in connection with, any
 bankruptcy, liquidation, arrangement or other procedure under the
 insolvency laws of any country;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Security
 Interest” means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 a mortgage, charge (whether fixed or floating) or
 pledge, any maritime or other lien or any
 other security interest of any kind;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the security rights of a plaintiff under an action in rem; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any arrangement entered into
 by a person (A) the effect of which is to place another person (B) in a position which is similar, in
 economic terms, to the position in which
 B would have been had he held a security interest over an asset of A; but
 this paragraph (c) does not apply
 to a right of set off or combination of accounts conferred by the
 standard terms of business of a bank or financial institution;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Security Party” means
 each Guarantor and any other person (except a Creditor Party) who, as a surety or mortgagor, as a party to
 any subordination or priorities arrangement, or in any similar capacity, executes a document
 falling within the last paragraph of the definition of “Finance
 Documents”;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Security
 Period” means the period
 commencing on the date of this Agreement and ending on the date on which the Agent notifies the Borrower, the
 Security Parties and the Lenders
 that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 all amounts which have become due for payment by the
 Borrower or any Security Party under the Finance Documents have been paid;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 no amount is owing or has accrued (without yet
 having become due for payment) under any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 neither the Borrower nor any
 Security Party has any future or contingent liability under Clause 20, 21 or 22 or any other provision
 of this Agreement or another Finance Document; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Agent, the Security Trustee and the Majority
 Lenders do not consider that there is a
 significant risk that any payment or transaction under a Finance Document would be set aside, or would have to be reversed
 or adjusted, in any present or possible
 future bankruptcy of the Borrower or a Security Party or in any present or possible
 future proceeding relating to a Finance Document or any asset covered (or
 previously covered) by a Security Interest created by a Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Security
 Trustee” means Danish
 Ship Finance A/S (Danmarks Skibskredit A/S), acting in such capacity
 through its office at Sankt-Annae Plads 3, DK-1250 Copenhagen K, Denmark, or any successor of it appointed under
 clause 5 of the Agency and Trust Agreement;

 

11

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Servicing
 Bank” means the Agent or the Security Trustee;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Ship” means
 the 154,800 cubic meter Liquefied Natural Gas carrier currently known as Hull No. 1641 which is to be constructed by the
 Builder for, and purchased by, the Borrower under the Shipbuilding
 Contract and upon delivery registered in the name of the Borrower under an Approved Flag;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Shipbuilding Contract” means the Shipbuilding Contract dated 29 April
 2005 as amended by an amendment No.
 1 agreement dated 28 June 2007 made between the Builder and the Original Buyer for the
 construction by the Builder of the Ship and its purchase by the Original
 Buyer (as novated to the Borrower as buyer pursuant to the Novation
 Agreement) and as further supplemented and amended from time to time;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “SMC” means a safety management
 certificate issued in respect of the Ship in accordance with Rule 13
 of the ISM Code;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Total Loss” means:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 actual, constructive,
 compromised, agreed or arranged total loss of the Ship;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any expropriation,
 confiscation, requisition or acquisition of the Ship, whether for full consideration, a consideration less than
 its proper value, a nominal consideration or without any
 consideration, which is effected by any government or official authority or by any person or persons claiming to be or to
 represent a government or official
 authority (excluding a requisition for hire for a fixed period not exceeding
 1 year without any right to an extension) unless it is within 1 month
 redelivered to the Borrower’s full control; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any
 arrest, capture, seizure or detention of the Ship (including any hijacking or
 theft) unless it is within 1 month redelivered to the Borrower’s full
 control;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Total Loss Date” means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in the case of an
 actual loss of the Ship, the date on which it occurred or, if that is
 unknown, the date when the Ship was last heard of;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 in
 the case of a constructive, compromised, agreed or arranged total loss of the
 Ship, the earliest of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 the
 date on which a notice of abandonment is given to the insurers; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 the
 date of any compromise, arrangement or agreement made by or on behalf of the Borrower with the Ship’s insurers
 in which the insurers agree to treat the Ship as a total loss; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in
 the case of any other type of total loss, on the date (or the most likely
 date) on which it appears to the Agent that the event constituting the
 total loss occurred;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Tranche”
 means any of Tranche A or Tranche B and, in the plural,
 means both of them;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Tranche A” means the amount of (originally) $80,804,648 representing as at 11 September
 2008 the outstanding principal amount of the first Advance drawndown by the
 Borrower (as that amount has been and may be further reduced);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Tranche B” means the amount of (originally) $84,187,193.26 representing as at 31 October
 2011 the outstanding principal amount of the aggregate of the second and
 third Advances drawndown by the Borrower
 (as such amount has been or may be further reduced);

 

12

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Transfer
 Agreement” means an agreement to be entered into between
 the Borrower and the Original Buyer in
 respect of the payment to be made by the Borrower to the Original Buyer
 in order to effect the novation of the Shipbuilding Contract to the Borrower;
 and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Trust Property” has the meaning given in clause 3.1 of the Agency and Trust Agreement.

 
	
  

 	
  

 	
  

 
	
 1.2

 	
  

 	
 Construction
 of certain terms. In this Agreement:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “administration
 notice” means a notice appointing an administrator, a
 notice of intended appointment and any
 other notice which is required by law (generally or in the case concerned)
 to be filed with the court or given to a person prior to, or in connection
 with, the appointment of an
 administrator;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “approved” means, for the purposes of Clause 13, approved in writing by the
 Agent;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “asset” includes
 every kind of property, asset, interest or right, including any present, future
 or contingent right to any revenues or other payment;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “company” includes any partnership, joint venture and unincorporated
 association;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “consent”
 includes an authorisation, consent, approval, resolution,
 licence, exemption, filing, registration,
 notarisation and legalisation;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “contingent
 liability” means a liability which is not certain to arise
 and/or the amount of which remains unascertained;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “document” includes a deed; also a letter, fax or telex;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “excess risks” means the proportion of claims for general average, salvage and
 salvage charges not recoverable under the hull and machinery policies
 in respect of the Ship in consequence of its insured value being less than
 the value at which the Ship is assessed for the purpose of such claims;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “expense” means any kind of cost, charge or expense (including all legal costs,
 charges and expenses) and any applicable value added or other tax;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “law” includes
 any order or decree, any form of delegated legislation, any treaty or international
 convention and any regulation or resolution of the Council of the European
 Union, the European Commission, the United Nations or its Security Council;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “legal or administrative action” means any legal proceeding or arbitration and
 any administrative or regulatory
 action or investigation;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “liability” includes every kind of debt or liability (present or future, certain
 or contingent), whether incurred as principal or surety or otherwise;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “months” shall be construed in accordance with Clause 1.3;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “obligatory insurances” means all insurances effected, or which the
 Borrower is obliged to effect, under Clause 13 or any other provision
 of this Agreement or another Finance Document;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “parent company” has the meaning given in Clause 1.4;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “person”
 includes any company; any state, political sub-division of
 a state and local or municipal authority;
 and any international organisation;

 

13

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “policy”,
 in relation to any insurance, includes a slip, cover note,
 certificate of entry or other document evidencing the contract of insurance
 or its terms;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “protection and indemnity risks” means the usual risks covered by a protection
 and indemnity association managed in London, including pollution risks
 and the proportion (if any) of any sums payable to any other person or
 persons in case of collision which are not recoverable
 under the hull and machinery policies by reason of the incorporation in them
 of Clause 6 of the International Hull Clauses (1/11/02 or 1/11/03),
 clause 8 of the Institute Time Clauses
 (Hulls) (1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83)
 or the Institute Amended Running Down Clause (1/10/71) or any
 equivalent provision;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “regulation” includes any regulation, rule, official directive, request or
 guideline whether or not having the force of law, of any intergovernmental or
 supranational body, agency, department or regulatory, self-regulatory
 or other authority or organisation;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “subsidiary” has the meaning given in Clause 1.4;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “tax” includes
 any present or future tax, duty, impost, levy or charge of any kind which is imposed by any state, any political
 sub-division of a state or any local or municipal authority (including any such imposed in connection with
 exchange controls), and any connected penalty, interest or fine; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “war risks” includes the risk of mines and all risks excluded by clause 29 of the International Hull Clauses (1/11/02 or
 1/11/03), clause 24 of the Institute Time Clauses (Hulls)(l/l1/95) or clause
 23 of the Institute Time Clauses (Hulls) (1/10/83).

 
	
  

 	
  

 	
  

 
	
 1.3

 	
  

 	
 Meaning of “month”. A period of one or more “months” ends on the day in the relevant calendar
 month numerically corresponding to the day of the calendar month on which the
 period started (“the numerically
 corresponding day”), but:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 on
 the Business Day following the numerically corresponding day if the
 numerically corresponding day is
 not a Business Day or, if there is no later Business Day in the same calendar
 month, on the Business Day preceding the numerically corresponding day; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 on
 the last Business Day in the relevant calendar month, if the period started
 on the last Business Day in a
 calendar month or if the last calendar month of the period has no numerically corresponding day;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and
 “month” and “monthly” shall be construed accordingly.

 
	
  

 	
  

 	
  

 
	
 1.4

 	
  

 	
 Meaning of “subsidiary”. A company (S) is a subsidiary of another
 company (P) if:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 a
 majority of the issued shares in S (or a majority of the issued shares in S
 which carry unlimited rights to
 capital and income distributions) are directly owned by P or are indirectly
 attributable to P; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 P has direct or
 indirect control over a majority of the voting rights attaching to the issued
 shares of S; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 P has the direct or
 indirect power to appoint or remove a majority of the directors of S; or

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 P
 otherwise has the direct or indirect power to ensure that the affairs of S
 are conducted in accordance with the wishes of P;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and any company of
 which S is a subsidiary is a parent company of S.

 
	
  

 	
  

 	
  

 
	
 1.5

 	
  

 	
 General Interpretation. In this Agreement:

 

14

	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 references to, or to a provision of, a Finance Document
 or any other document are references to it as amended or supplemented, whether
 before the date of this Agreement or otherwise;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 references to, or to a provision of, any law include
 any amendment, extension, re-enactment or replacement, whether made before the date of
 this Agreement or otherwise;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 words denoting the singular number shall include the
 plural and vice versa; and

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 Clauses 1.1 to 1.5 apply unless the contrary intention
 appears.

 
	
  

 	
  

 	
  

 
	
 1.6

 	
  

 	
 Headings. In interpreting a Finance Document or any provision of a Finance
 Document, all clause, sub-clause and
 other headings in that and any other Finance Document shall be entirely disregarded.

 
	
  

 	
  

 	
  

 
	
 2

 	
  

 	
 FACILITY

 
	
  

 	
  

 	
  

 
	
 2.1

 	
  

 	
 Amount of facility. Subject to the other
 provisions of this Agreement, the Lenders shall make available to the
 Borrower a loan facility not exceeding the lesser of (a) $174,033,000 and (b)
 75 per cent. of the Project Cost of the Ship.

 
	
  

 	
  

 	
  

 
	
 2.2

 	
  

 	
 Lenders’ participations in Loan. Subject to the other
 provisions of this Agreement, each Lender shall participate in each Advance in the
 proportion which, as at the relevant Drawdown Date, its Commitment bears to the Total
 Commitments.

 
	
  

 	
  

 	
  

 
	
 2.3

 	
  

 	
 Purpose of Loan. The Borrower
 undertakes with each Creditor Party to use each Advance only for the purpose
 stated in the preamble to this Agreement.

 
	
  

 	
  

 	
  

 
	
 3

 	
  

 	
 POSITION
 OF THE LENDERS

 
	
  

 	
  

 	
  

 
	
 3.1

 	
  

 	
 Interests of Lenders several. The rights of the
 Lenders under this Agreement are several.

 
	
  

 	
  

 	
  

 
	
 3.2

 	
  

 	
 Individual Lender’s right of action. Each Lender shall be
 entitled to sue for any amount which
 has become due and payable by the Borrower to it under this Agreement without
 joining the Agent, the Security Trustee
 or any other Lender as additional parties in the proceedings.

 
	
  

 	
  

 	
  

 
	
 3.3

 	
  

 	
 Proceedings by individual Lender requiring Majority Lender
 consent. Except as provided in Clause
 3.2, no Lender may commence proceedings against the Borrower or any Security Party in connection with a Finance
 Document without the prior consent of the Majority
 Lenders.

 
	
  

 	
  

 	
  

 
	
 3.4

 	
  

 	
 Obligations of Lenders several. The obligations of the
 Lenders under this Agreement are several; and a failure of a Lender to perform its
 obligations under this Agreement shall not result in:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the obligations of the other Lenders being increased;
 nor

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the Borrower, any Security Party or any other Lender
 being discharged (in whole or in part) from its obligations under any Finance
 Document;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and in no circumstances shall a Lender have any
 responsibility for a failure of another Lender to perform its obligations under this
 Agreement.

 
	
  

 	
  

 	
  

 
	
 4

 	
  

 	
 DRAWDOWN

 
	
  

 	
  

 	
  

 
	
 4.1

 	
  

 	
 Request for Advance. Subject to the
 following conditions, the Borrower may request an Advance to be made by
 ensuring that the Agent receives a completed Drawdown Notice

 

15

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 not
 later than 11.00 a.m. (Copenhagen time), 5 Business Days prior to the
 intended Drawdown Date (other than in the case of the Drawdown Notice
 in respect of the first Advance which shall be received by the Agent no later
 than 11.00 a.m. (Copenhagen time) on the Drawdown Date for that Advance).

 
	
  

 	
  

 	
  

 	
  

 
	
 4.2

 	
  

 	
 Availability. The conditions referred to in Clause 4.1 are that:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the amount of each
 Advance shall not exceed:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 in
 the case of the first Advance, $80,804,648;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 in the case of the
 second Advance, $16,903,835; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 in
 the case of the third Advance, $76,324,517;

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 the
 aggregate amount of the Advances shall not exceed the lesser of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 the Total Commitments;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 75
 per cent. of the Project Cost; and

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 if
 the Borrower requests less than the maximum amount of an Advance, the amount
 not requested may be borrowed at a
 later stage Provided that there
 shall not be more than 3 Advances
 and no amounts may be drawdown after the Drawdown Date of the third Advance.

 
	
  

 	
  

 	
  

 	
  

 
	
 4.3

 	
  

 	
 Notification to Lenders of receipt of a Drawdown Notice. The Agent shall promptly notify the Lenders that it has received a
 Drawdown Notice and shall inform each Lender of:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the amount of the
 Advance and the Drawdown Date;

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the amount of that
 Lender’s participation in the Advance;

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 the duration of the
 first Interest Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 4.4

 	
  

 	
 Drawdown
 Notice irrevocable. A Drawdown Notice must be signed by a
 duly authorised signatory of the Borrower;
 and once served, a Drawdown Notice cannot be revoked without the prior
 consent of the Agent, acting with the authorisation of the Majority Lenders.

 
	
  

 	
  

 	
  

 	
  

 
	
 4.5

 	
  

 	
 Lenders to make available Contributions. Subject to the provisions of this Agreement, each Lender shall, on and with value on each
 Drawdown Date, make available to the Agent for the account of the Borrower the amount due from that Lender on
 that Drawdown Date under Clause 2.2.

 
	
  

 	
  

 	
  

 	
  

 
	
 4.6

 	
  

 	
 Disbursement of Advance. Subject to the provisions of this Agreement,
 the Agent shall on each Drawdown Date pay to the Borrower the amounts which
 the Agent receives from the Lenders under Clause 4.5; and that payment
 to the Borrower shall be made:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 to the account of the
 Original Buyer or the Builder, as the case may be, which the Borrower specifies in the Drawdown Notice and any amount
 in excess of the amounts payable to either the Original Buyer or the
 Builder hereunder to the account of the Borrower; and

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 in the like funds as
 the Agent received the payments from the Lenders.

 

16

	
  

 	
  

 	
  

 
	
 4.7

 	
  

 	
 Disbursement
 of Advance to third party. The payment by the Agent under
 Clause 4.6 to the Original Buyer or the Builder, as the case may be, shall
 constitute the making of the Advance and the Borrower shall thereupon become
 indebted, as principal and direct obligor, to each Lender in an amount equal
 to that Lender’s Contribution.

 
	
  

 	
  

 	
  

 
	
 5

 	
  

 	
 INTEREST

 
	
  

 	
  

 	
  

 
	
 5.1

 	
  

 	
 Payment
 of normal interest. Subject to the provisions of this
 Agreement, interest on each Tranche in respect of each Interest Period
 applicable to it shall be paid by the Borrower on the last day of that
 Interest Period.

 
	
  

 	
  

 	
  

 
	
 5.2 

 	
  

 	
 Normal
 rate of interest. Subject to the provisions of this
 Agreement, the rate of interest on a Tranche in respect of an Interest Period
 applicable to it shall be the aggregate of the Margin and the Applicable
 Interest Rate for that Interest Period.

 
	
  

 	
  

 	
  

 
	
 5.3

 	
  

 	
 Payment
 of accrued interest. In the case of an Interest Period of 6
 months or longer, accrued interest shall be paid every 3 months during that
 Interest Period and on the last day of that Interest Period.

 
	
  

 	
  

 	
  

 
	
 5.4

 	
  

 	
 Notification of Interest Periods and rates of normal
 interest. The Agent
 shall notify the Borrower and each Lender of:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 each rate of interest;
 and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the duration of each
 Interest Period; 

as soon as reasonably practicable after each is determined.

 
	
  

 	
  

 	
  

 
	
 5.5

 	
  

 	
 Market
 disruption. The following provisions of this Clause 5 apply
 if:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 at least 1 Business Day
 before the start of an Interest Period for a Tranche which is not at that
 time subject to a Fixed Interest Rate, Lenders having Contributions together
 amounting to more than 50 per cent. of the Loan (or, if the Loan has not been
 made, Commitments amounting to more than 50 per cent. of the Total
 Commitments) notify the Agent that LIBOR fixed by the Agent would not
 accurately reflect the cost to those Lenders of funding their respective
 Contributions (or any part of them) during the Interest Period in the London
 Interbank Market at or about 11.00 a.m. (London time) on the Quotation Date
 for the Interest Period; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 at least 1 Business Day
 before the start of an Interest Period, the Agent is notified by a Lender
 (the “Affected Lender”) that for
 any reason it is unable to obtain Dollars in the London Interbank Market in
 order to fund its Contribution (or any part of it) during the Interest
 Period.

 
	
  

 	
  

 	
  

 
	
 5.6

 	
  

 	
 Notification
 of market disruption. The Agent shall promptly notify the
 Borrower and each of the Lenders stating the circumstances falling within
 Clause 5.5 which have caused its notice to be given.

 
	
  

 	
  

 	
  

 
	
 5.7

 	
  

 	
 Suspension
 of drawdown. If the Agent’s notice under Clause 5.6 is
 served before an Advance is made:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 in a case falling
 within Clauses 5.5(a) or (b), the Lenders’ obligations to make the
 Advance;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 in a case falling
 within Clause 5.5(c), the Affected Lender’s obligation to participate in the
 Advance; 

shall be suspended while the circumstances referred to in the
 Agent’s notice continue.

 

17

	
  

 	
  

 	
  

 
	
 5.8

 	
  

 	
 Negotiation
 of alternative rate of interest. If the Agent’s notice under
 Clause 5.6 is served after an Advance is made, the Borrower, the Agent and
 the Lenders or (as the case may be) the Affected Lender shall use reasonable
 endeavours to agree, within the 30 days after the date on which the Agent
 serves its notice under Clause 5.6 (the “Negotiation
 Period”), an alternative interest rate or (as the case may be) an
 alternative basis for the Lenders or (as the case may be) the Affected Lender
 to fund or continue to fund their or its Contribution in the relevant Tranche
 during the Interest Period concerned.

 
	
  

 	
  

 	
  

 
	
 5.9

 	
  

 	
 Application
 of agreed alternative rate of interest. Any alternative
 interest rate or an alternative basis which is agreed during the Negotiation
 Period shall take effect in accordance with the terms agreed.

 
	
  

 	
  

 	
  

 
	
 5.10

 	
  

 	
 Alternative
 rate of interest in absence of agreement. If an alternative
 interest rate or alternative basis is not agreed within the Negotiation
 Period, and the relevant circumstances are continuing at the end of the
 Negotiation Period, then the Agent shall, with the agreement of each Lender
 or (as the case may be) the Affected Lender, set an interest period and
 interest rate representing the cost of funding of the Lenders or (as the case
 may be) the Affected Lender in Dollars or in any available currency of their
 or its Contribution relevant Tranche plus the applicable Margin; and the
 procedure provided for by this Clause 5.10 shall be repeated if the relevant
 circumstances are continuing at the end of the interest period so set by the
 Agent.

 
	
  

 	
  

 	
  

 
	
 5.11

 	
  

 	
 Notice
 of prepayment. If the Borrower does not agree with an
 interest rate set by the Agent under Clause 5.10, the Borrower may give the
 Agent not less than 15 Business Days’ notice of its intention to prepay at
 the end of the interest period set by the Agent.

 
	
  

 	
  

 	
  

 
	
 5.12

 	
  

 	
 Prepayment;
 termination of Commitments. A notice under Clause 5.11
 shall be irrevocable; the Agent shall promptly notify the Lenders or (as the
 case may require) the Affected Lender of the Borrower’s notice of intended
 prepayment; and:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 on the date on which
 the Agent serves that notice, the Total Commitments or (as the case may
 require) the Commitment of the Affected Lender shall be cancelled; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 on the last Business
 Day of the interest period set by the Agent, the Borrower shall prepay
 (without premium or penalty) the relevant Tranche or, as the case may be, the
 Affected Lender’s Contribution in the relevant Tranche, together with accrued
 interest thereon at the applicable rate plus the Margin.

 
	
  

 	
  

 	
  

 
	
 5.13

 	
  

 	
 Application
 of prepayment. The provisions of Clause 8 shall apply in
 relation to the prepayment.

 
	
  

 	
  

 	
  

 
	
 5.14

 	
  

 	
 Fixed
 Rate Option. The Borrower shall be entitled, by notice in
 writing to the Agent at any time following the expiration of the Initial
 Fixing Period, to request the Agent to quote the Fixed Interest Rate which is
 to apply to Tranche A for the Other Fixing Period. If the Borrower confirms
 in writing its agreement to the Fixed Interest Rate and the Other Fixing
 Period so quoted by the Agent immediately after the Agent has made such
 quotation, the Fixed Interest Rate will apply to Tranche A for the Other
 Fixing Period. The Agent shall be under no obligation to convert Tranche A to
 a fixed rate if, the Agent having quoted a Fixed Interest Rate as provided
 above, the Borrower does not agree to the Fixed Interest Rate so quoted or it
 fails to notify the Agent its agreement to the Fixed Interest Rate by the
 time specified in this Clause 5.14 or any Potential Event of Default or Event
 of Default has occurred and is continuing. Following expiration of a Fixed
 Rate Period, the relevant Tranche shall bear interest at the rate of the
 aggregate of LIBOR and the Margin.

 
	
  

 	
  

 	
  

 
	
 6

 	
  

 	
 INTEREST
 PERIODS

 
	
  

 	
  

 	
  

 
	
 6.1

 	
  

 	
 Commencement of Interest Periods. The
 first Interest Period applicable to a Tranche which is not subject to a Fixed
 Interest Rate shall commence on the first Business Day after

 

18

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the expiry of the
 applicable Fixed Rate Period and each subsequent Interest Period shall
 commence on the expiry of the preceding Interest Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.2

 	
  

 	
 Duration
 of normal Interest Periods. Subject to Clauses 6.3 and 6.4,
 each Interest Period shall be:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 when a Tranche is
 subject to a Fixed Interest Rate, a period equal in duration to the relevant
 Fixed Rate Period;

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 at all other times, 3
 months or such other period as the Agent may, with the authorisation of the
 Majority Lenders, agree with the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.3

 	
  

 	
 Duration
 of Interest Periods for repayment instalments. In respect
 of an amount due to be repaid under Clause 8 on a particular Repayment Date,
 an Interest Period shall end on that Repayment Date.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.4

 	
  

 	
 Non-availability
 of matching deposits for Interest Period selected. If,
 after the Borrower has selected and the Lenders have agreed an Interest
 Period (other than a Fixed Rate Period) longer than 3 months, any Lender
 notifies the Agent by 11.00 a.m. (Copenhagen time) on the third Business Day
 before the commencement of the Interest Period that it is not satisfied that
 deposits in Dollars for a period equal to the Interest Period will be
 available to it in the London Interbank Market when the Interest Period
 commences, the Interest Period shall be of 3 months.

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
  

 	
 DEFAULT INTEREST

 
	
  

 	
  

 	
  

 	
  

 
	
 7.1 

 	
  

 	
 Payment
 of default interest on overdue amounts. The Borrower shall
 pay interest in accordance with the following provisions of this Clause 7 on
 any amount payable by the Borrower under any Finance Document which the
 Agent, the Security Trustee or the other designated payee does not receive on
 or before the relevant date, that is:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the date on which the
 Finance Documents provide that such amount is due for payment; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 if a Finance Document
 provides that such amount is payable on demand, the date on which the demand
 is served; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 if such amount has
 become immediately due and payable under Clause 19.4, the date on which it
 became immediately due and payable.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.2 

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 in the case of an
 overdue amount of principal, the higher of the rates set out at Clauses
 7.3(a) and (b); or

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 in the case of any
 other overdue amount, the rate set out at Clause 7.3(b).

 
	
  

 	
  

 	
  

 	
  

 
	
 7.3 

 	
  

 	
 Calculation
 of default rate of interest. The rates referred to in
 Clause 7.2 are:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the rate applicable to
 the overdue principal amount immediately prior to the relevant date (but only
 for any unexpired part of any then current Interest Period);

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the Margin plus, in
 respect of successive periods of any duration (including at call) up to 3
 months which the Agent may select from time to time:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 the Applicable Interest
 Rate; or

 

19

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 (in the case of a
 Tranche which is not subject to a Fixed Interest Rate) if the Agent
 determines that Dollar deposits for any such period are not being made
 available to a Lender or (as the case may be) Lenders by leading banks in the
 London Interbank Market in the ordinary course of business, a rate from time
 to time determined by the Agent by reference to the cost of funds to the
 Agent from such other sources as the Agent may from time to time determine.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.4

 	
  

 	
 Notification
 of interest periods and default rates. The Agent shall
 promptly notify the Lenders and the Borrower of each interest rate determined
 by the Agent under Clause 7.3 and of each period selected by the Agent for
 the purposes of paragraph (b) of that Clause; but this shall not be taken to
 imply that the Borrower is liable to pay such interest only with effect from
 the date of the Agent’s notification.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.5 

 	
  

 	
 Payment
 of accrued default interest. Subject to the other
 provisions of this Agreement, any interest due under this Clause shall be
 paid on the last day of the period by reference to which it was determined;
 and the payment shall be made to the Agent for the account of the Creditor
 Party to which the overdue amount is due.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.6

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
 REPAYMENT AND PREPAYMENT

 
	
  

 	
  

 	
  

 	
  

 
	
 8.1

 	
  

 	
 Amount
 of repayment instalments. The Borrower shall repay the Loan
 by:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 40 consecutive
 quarterly instalments, the first 12 instalments of $2,812,913 each and the
 next 28 instalments of $2,062,913 each; and

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 a balloon instalment of
 $82,516,480 (the “Balloon Instalment”)

 Provided that if the aggregate amount of the Loan drawn down by
 the Borrower is less than $174,033,000, each repayment instalment and the
 Balloon Instalment shall be reduced pro rata by an amount in aggregate equal
 to such undrawn amount.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.2

 	
  

 	
 Repayment
 Dates. The first instalment shall be repaid on the date
 falling three months after the final Drawdown Date and the last instalment
 together with the Balloon Instalment on the date falling on the tenth
 anniversary of the final Drawdown Date.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.3

 	
  

 	
 Final
 Repayment Date. On the final Repayment Date, the Borrower
 shall additionally pay to the Agent for the account of the Creditor Parties
 all other sums then accrued or owing under any Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.4

 	
  

 	
 Voluntary
 prepayment. Subject to the following conditions, the
 Borrower may prepay the whole or any part of the Loan on the last day of an
 Interest Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.5

 	
  

 	
 Conditions
 for voluntary prepayment. The conditions referred to in
 Clause 8.4 are that:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 a partial prepayment
 shall be $1,000,000 or a multiple of $1,000,000;

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the Agent has received
 from the Borrower at least 15 Business Days’ prior written notice specifying
 the amount to be prepaid and the date on which the prepayment is to be made;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 the Borrower has
 provided evidence satisfactory to the Agent that any consent required by the
 Borrower or any Security Party in connection with the prepayment has been
 obtained and remains in force, and that any requirement relevant to this
 Agreement which affects the Borrower or any Security Party has been complied
 with.

 

20

	
  

 	
  

 	
  

 	
  

 
	
 8.6

 	
  

 	
 Effect of notice of prepayment. A prepayment notice may not be withdrawn or
 amended without the consent of the Agent, given with the authorisation of the
 Majority Lenders, and the amount specified in the prepayment notice shall
 become due and payable by the Borrower on the date for prepayment specified
 in the prepayment notice.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.7

 	
  

 	
 Notification of notice of prepayment. The Agent shall notify the Lenders promptly
 upon receiving a prepayment notice, and shall provide any Lender which so
 requests with a copy of any document delivered by the Borrower under Clause
 8.5(c).

 
	
  

 	
  

 	
  

 	
  

 
	
 8.8

 	
  

 	
 Mandatory prepayment. The Borrower shall be obliged to prepay the
 whole of the Loan:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 if
 the Ship is sold, on or before the date on which the sale is completed by
 delivery of the Ship to the buyer; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 if
 the Ship becomes a Total Loss, on the earlier of the date falling 180 days
 after the Total Loss Date and the date of receipt by the Security Trustee of
 the proceeds of insurance relating to such Total Loss; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 if
 any of the following occurs, on demand by the Agent (unless otherwise
 agreed):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 any
 of the events specified in Article IX of the Shipbuilding Contract occurs; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 the
 Shipbuilding Contract is amended or varied without the prior written consent
 of the Majority Lenders except for any such amendment or variation as is
 permitted by this Agreement or any other relevant Finance Document; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 the
 Ship has not for any reason been delivered to, and accepted by, the Borrower
 under the Shipbuilding Contract by the last day of the Availability Period;

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 within
 40 days (or such longer period as may be agreed by the Agent (acting upon the
 instructions of all the Lenders) following a request from the Borrower and
 subject to the Borrower having submitted promptly a valid demand under the
 Refund Guarantee) of the date on which either the Shipbuilding Contract or
 the Refund Guarantee is cancelled, terminated, rescinded or suspended or
 otherwise ceases to remain in force for any reason; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 following
 the date of a Qualified IPO if there is a Change of Control, the Borrower
 shall be obliged to prepay all of the Loan no later than 60 days following the
 Change of Control unless such Change of Control is, before the end of such
 period approved by the Agent acting with the consent of the Majority Lenders.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.9

 	
  

 	
 Amounts payable on prepayment. A prepayment shall be made together with
 accrued interest (and any other amount payable under Clause 21 or otherwise)
 in respect of the amount prepaid and, if the prepayment is not made on the
 last day of an Interest Period together with any sums payable under Clause
 21.1(b) but without premium or penalty.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.10

 	
  

 	
 Application of partial prepayment. Each partial prepayment shall be applied
 against the repayment instalments specified in Clause 8.1 in inverse order of
 maturity.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.11

 	
  

 	
 No reborrowing. No amount prepaid may be reborrowed. 

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
 CONDITIONS PRECEDENT

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1

 	
  

 	
 Documents, fees and no default. Each Lender’s obligation to contribute to
 an Advance is subject to the following conditions precedent:

 

21

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 that, on or before the
 service of the first Drawdown Notice, the Agent receives the documents
 described in Part A of Schedule 3 in form and substance satisfactory to the
 Agent and its lawyers;

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 that, on or before the
 service of the first Drawdown Notice, the Agent receives the up-front fee
 referred to in Clause 20.1 and all accrued commitment fee payable pursuant to
 Clause 20.1; and

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 that, on or before the
 first Drawdown Date, the Agent receives the documents described in Part B of
 Schedule 3 in form and substance satisfactory to the Agent and its lawyers;

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 that on or before the
 Drawdown Date in respect of the second Advance the Agent receives the
 documents described in Part C of Schedule 3 (other than the Approved Charter,
 a copy of which shall be delivered to the Agent no later than 5 Business Days
 prior to such Drawdown Date) in form and substance satisfactory to the Agent
 and its lawyers;

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 that, on or before the
 final Drawdown Date, the Agent receives the documents described in Part D of
 Schedule 3 in form and substance satisfactory to the Agent and its lawyers;

 
	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 that both at the date
 of each Drawdown Notice and at each Drawdown Date:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 no Event of Default or
 Potential Event of Default has occurred and is continuing or would result
 from the borrowing of the Loan;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 the representations and
 warranties in Clause 10.1 and those of the Borrower or any Security Party
 which are set out in the other Finance Documents would be true and not
 misleading if repeated on each of those dates with reference to the
 circumstances then existing unless, the Agent, acting on the instructions of
 the Majority Lenders, agrees to the contrary;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 none of the
 circumstances contemplated by Clause 5.5 has occurred and is continuing; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 there has been no
 material adverse change in the financial position, operation or circumstances
 of the Borrower or the Guarantor since the date of this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 that, if the ratio set
 out in Clause 15.1 were applied immediately following the making of the
 Advance, the Borrower would not be obliged to provide additional security or
 prepay part of the Loan under that Clause; and

 
	
  

 	
  

 	
  

 	
  

 
	
 (h)

 	
  

 	
 that the Agent has
 received, and found to be acceptable to it, any further opinions, consents,
 agreements and documents in connection with the Finance Documents which the
 Agent may, with the authorisation of the Majority Lenders, request by notice
 to the Borrower prior to the Drawdown Date.

 
	
  

 	
  

 	
  

 	
  

 
	
 9.2

 	
  

 	
 Waiver
 of conditions precedent. If the Majority Lenders, at their
 discretion, permit an Advance to be borrowed before certain of the conditions
 referred to in Clause 9.1 are satisfied, the Borrower shall ensure that those
 conditions are satisfied within 10 Business days after the Drawdown Date (or
 such longer period as the Agent may, with the authorisation of the Majority
 Lenders, specify).

 
	
  

 	
  

 	
  

 
	
 10

 	
  

 	
 REPRESENTATIONS AND WARRANTIES

 
	
  

 	
  

 	
  

 
	
 10.1

 	
  

 	
 General.
 The Borrower represents and warrants to each Creditor Party
 as follows.

 
	
  

 	
  

 	
  

 
	
 10.2

 	
  

 	
 Status.
 The Borrower is duly incorporated and validly existing and
 in good standing under the laws of Bermuda.

 

22

	
  

 	
  

 	
  

 
	
 10.3

 	
  

 	
 Share capital and ownership. The Borrower has an authorised share
 capital of $12,000 divided into 12,000 registered shares of $1 each all of
 which shares have been issued fully paid, and the legal title and beneficial
 ownership of all those shares is held, free of any Security Interest or other
 claim, by GasLog Carriers.

 
	
  

 	
  

 	
  

 
	
 10.4

 	
  

 	
 Corporate power. The Borrower has the corporate capacity, and has taken all corporate
 action and obtained all consents necessary for it:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 to
 execute the Novation Agreement and the Transfer Agreement, to purchase and
 pay for the Ship under the Shipbuilding Contract and the Transfer Agreement
 and register the Ship in its name under an Approved Flag;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 to
 execute the Finance Documents to which the Borrower is a party; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 to
 borrow under this Agreement and to make all the payments contemplated by, and
 to comply with, those Finance Documents.

 
	
  

 	
  

 	
  

 
	
 10.5

 	
  

 	
 Consents in force. All the consents referred to in Clause 10.4
 remain in force and nothing has occurred which makes any of them liable to
 revocation.

 
	
  

 	
  

 	
  

 
	
 10.6

 	
  

 	
 Legal validity; effective Security Interests. The Finance Documents to which the Borrower
 is a party, do now or, as the case may be, will, upon execution and delivery
 (and, where applicable, registration as provided for in the Finance
 Documents):

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 constitute
 the Borrower’s legal, valid and binding obligations enforceable against the
 Borrower in accordance with their respective terms; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 create
 legal, valid and binding Security Interests enforceable in accordance with
 their respective terms over all the assets to which they, by their terms,
 relate; 

subject to any relevant insolvency laws affecting creditors’ rights
 generally.

 
	
  

 	
  

 	
  

 
	
 10.7

 	
  

 	
 No third party Security Interests. Without limiting the generality of Clause
 10.6, at the time of the execution and delivery of each Finance Document:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the
 Borrower will have the right to create all the Security Interests which that
 Finance Document purports to create; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 no
 third party will have any Security Interest or any other interest, right or
 claim over, in or in relation to any asset to which any such Security
 Interest, by its terms, relates.

 
	
  

 	
  

 	
  

 
	
 10.8

 	
  

 	
 No
 conflicts. The execution by the
 Borrower of each Finance Document, and the borrowing by the Borrower of the
 Loan, and its compliance with each Finance Document will not involve or lead
 to a contravention of:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 any
 law or regulation; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the
 constitutional documents of the Borrower; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 any
 contractual or other obligation or restriction which is binding on the
 Borrower or any of its assets.

 
	
  

 	
  

 	
  

 
	
 10.9

 	
  

 	
 No withholding taxes. All payments which the Borrower is liable
 to make under the Finance Documents may be made without deduction or
 withholding for or on account of any tax payable under any law of any
 Pertinent Jurisdiction.

 
	
  

 	
  

 	
  

 
	
 10.10

 	
  

 	
 No default. No Event of Default or Potential Event of Default has occurred and is
 continuing.

 

23

	
  

 	
  

 	
  

 
	
 10.11

 	
  

 	
 Information.
 All information which has been provided in writing by or on
 behalf of the Borrower or any Security Party to any Creditor Party in
 connection with any Finance Document satisfied the requirements of Clause
 11.5; all audited and unaudited accounts which have been so provided
 satisfied the requirements of Clause 11.7; and there has been no material
 adverse change in the financial position or state of affairs of the Borrower
 or any Guarantor from that disclosed in the latest of those accounts.

 
	
  

 	
  

 	
  

 
	
 10.12

 	
  

 	
 No litigation.
 No legal or administrative action involving the Borrower
 (including action relating to any alleged or actual breach of the ISM Code or
 the ISPS Code) has been commenced or taken or, to the Borrower’s knowledge,
 is likely to be commenced or taken which, in either case, would be likely to
 have a material adverse effect on the Borrower’s financial position or
 profitability.

 
	
  

 	
  

 	
  

 
	
 10.13

 	
  

 	
 Validity
 and completeness of Shipbuilding Contract, Transfer Agreement, Novation
 Agreement and Refund Guarantee. Each of the Shipbuilding
 Contract, the Transfer Agreement, the Novation Agreement and the Refund
 Guarantee constitute valid, binding and enforceable obligations of the
 parties thereto in accordance with its terms; and:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the copies of the
 Shipbuilding Contract, the Transfer Agreement, the Novation Agreement, and
 the Refund Guarantee delivered to the Agent before the date of this Agreement
 are true and complete copies or, in the case of the Refund Guarantee,
 original thereof; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 no amendments or
 additions to the Shipbuilding Contract, the Transfer Agreement, the Novation
 Agreement or the Refund Guarantee have been agreed nor has any party thereto
 waived any of their respective rights under any of them.

 
	
  

 	
  

 	
  

 
	
 10.14

 	
  

 	
 No
 rebates etc. Other than pursuant to the Transfer Agreement,
 there is no agreement or understanding to allow or pay any rebate, premium,
 commission, discount or other benefit or payment (howsoever described) to the
 Borrower, the Builder, the Original Buyer or a third party in connection with
 the purchase by the Borrower of the Ship, other than as disclosed to the
 Lenders in writing on or prior to the date of this Agreement.

 
	
  

 	
  

 	
  

 
	
 10.15

 	
  

 	
 Compliance
 with certain undertakings. At the date of this Agreement,
 the Borrower is in compliance with Clauses 11.2, 11.3, 11.4, 11.9 and 11.13.

 
	
  

 	
  

 	
  

 
	
 10.16

 	
  

 	
 Taxes
 paid. The Borrower has paid all taxes applicable to, or
 imposed on or in relation to the Borrower, its business or the Ship.

 
	
  

 	
  

 	
  

 
	
 10.17

 	
  

 	
 ISM
 Code and ISPS Code compliance. All requirements of the ISM
 Code and the ISPS Code as they relate to the Borrower, the Approved Manager
 and the Ship have been complied with.

 
	
  

 	
  

 	
  

 
	
 10.18

 	
  

 	
 No
 money laundering. Without prejudice to the generality of
 Clause 2.3, in relation to the borrowing by the Borrower of the Loan, the
 performance and discharge of their respective obligations and liabilities
 under the Finance Documents, and the transactions and other arrangements
 affected or contemplated by the Finance Documents to which the Borrower is a
 party, the Borrower confirms (i) that it is acting for its own account; (ii)
 that it will use the proceeds of the Loan for its own benefit, under its full
 responsibility and exclusively for the purposes specified in this Agreement;
 and (iii) that the foregoing will not involve or lead to a contravention of
 any law, official requirement or other regulatory measure or procedure
 implemented to combat “money laundering” (as defined in Article 1 of
 Directive (91/308) EEC) of the Council of the European Communities).

 
	
  

 	
  

 	
  

 
	
 11 

 	
  

 	
 GENERAL
 UNDERTAKINGS

 
	
  

 	
  

 	
  

 
	
 11.1 

 	
  

 	
 General.
 The Borrower undertakes with each Creditor Party to comply
 with the following provisions of this Clause 11 at all times during the
 Security Period except as the Agent may, with the authorisation of the
 Majority Lenders, otherwise permit.

 

24

	
  

 	
  

 	
  

 	
  

 
	
 11.2

 	
  

 	
 Title; negative pledge. The Borrower will:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 hold
 the legal title to, and own the entire beneficial interest in the Ship, the
 Insurances and Earnings, free from all Security Interests and other interests
 and rights of every kind, except for those created by the Finance Documents
 and the effect of assignments contained in the Finance Documents; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 not
 create or permit to arise any Security Interest over any other asset, present
 or future.

 
	
  

 	
  

 	
  

 	
  

 
	
 11.3

 	
  

 	
 No
 disposal of assets. The Borrower
 will not transfer, lease or otherwise dispose of:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 all
 or a substantial part of its assets, whether by one transaction or a number
 of transactions, whether related or not; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any
 debt payable to it or any other right (present, future or contingent right)
 to receive a payment, including any right to damages or compensation.

 
	
  

 	
  

 	
  

 	
  

 
	
 11.4

 	
  

 	
 No
 other liabilities or obligations to be
 incurred. The Borrower will not incur any liability or obligation
 except liabilities and obligations under the Shipbuilding Contract, the
 Transfer Agreement, the Novation Agreement and the Finance Documents and
 liabilities or obligations reasonably incurred in the ordinary course of
 operating and chartering the Ship.

 
	
  

 	
  

 	
  

 	
  

 
	
 11.5

 	
  

 	
 Information provided to be accurate. All financial and other information which
 is provided in writing by or on behalf of the Borrower under or in connection
 with any Finance Document will be true and not misleading and will not omit
 any material fact or consideration.

 
	
  

 	
  

 	
  

 	
  

 
	
 11.6

 	
  

 	
 Provision of financial statements. The Borrower will send to the Agent:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 as
 soon as possible, but in no event later than 5 months after the end of each
 financial year of the Borrower, the audited consolidated accounts of the
 Borrower (commencing with the financial year ended 31 December 2007);

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 as
 soon as possible, but in no event later than 90 days after the end of each
 6-month period ending on 30 June in each financial year of the Borrower:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 unaudited
 consolidated accounts of the Borrower (commencing with the accounts for the
 6-month period ending on 30 June 2008) certified as to their correctness by
 any officer or director of the Borrower; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 (as
 from the first financial 6-month period falling after the Delivery Date)
 management accounts in a format approved by the Agent which show the results
 of the operation of the Ship during the preceding financial 6-month period
 and which are certified as to their correctness by the chief financial
 officer of the Borrower;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 as
 soon as possible, but in no event later than 3 months after the end of each
 financial year of the Borrower (commencing with the financial year in which
 the Delivery Date falls), a budget in a format approved by the Agent which
 shows all anticipated income and expenditure of the Ship during the next
 financial year of the Borrower;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 together
 with each set of accounts provided under 11.6(a) and (b), a compliance
 certificate in the form set out in Schedule 6 to this Agreement (or in such
 other form as the Agent may reasonably require) duly signed by the chief
 financial officers of the Borrower and GasLog together with such other
 financial and other information relating to the Borrower or GasLog as the
 Security Trustee may request for this purpose.

 
	
  

 	
  

 	
  

 	
  

 
	
 11.7

 	
  

 	
 Form of financial statements. All accounts (audited and unaudited)
 delivered under Clause 11.6 will:

 

25

	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 be
 prepared in accordance with all applicable laws and GAAP consistently
 applied;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 give
 a true and fair view of the state of affairs of the Borrower at the date of
 those accounts and of its profit for the period to which those accounts
 relate; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 fully
 disclose or provide for all significant liabilities of the Borrower.

 
	
  

 	
  

 	
  

 
	
 11.8

 	
  

 	
 Creditor notices. The Borrower will send the Agent, at the same time as they are
 despatched, copies of all material communications which the Borrower is
 legally obliged to despatch to all of its creditors or any class of them.

 
	
  

 	
  

 	
  

 
	
 11.9

 	
  

 	
 Consents. The Borrower will maintain in force and promptly obtain or renew, and
 will promptly send certified copies to the Agent of, all consents required:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 for
 the Borrower to perform its obligations under any Finance Document;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 for
 the validity or enforceability of any Finance Document;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 for
 the Borrower to continue to own and operate the Ship; 

and the Borrower will
 comply with the terms of all such consents.

 
	
  

 	
  

 	
  

 
	
 11.10

 	
  

 	
 Maintenance of Security Interests. The Borrower will:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 at
 its own cost, do all that it reasonably can to ensure that any Finance
 Document validly creates the obligations and the Security Interests which it
 purports to create; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 without
 limiting the generality of paragraph (a), at its own cost, promptly register,
 file, record or enrol any Finance Document (to which it is a party) with any
 court or authority in all Pertinent Jurisdictions, pay any stamp,
 registration or similar tax in all Pertinent Jurisdictions in respect of any
 Finance Document, give any notice or take any other step which, in the
 opinion of the Majority Lenders, is or has become necessary or desirable for
 any Finance Document to be valid, enforceable or admissible in evidence or to
 ensure or protect the priority of any Security Interest which it creates.

 
	
  

 	
  

 	
  

 
	
 11.11

 	
  

 	
 Notification of litigation. The Borrower will provide the Agent with
 details of any legal or administrative action involving the Borrower, any
 Security Party, the Approved Manager or the Ship, the Earnings or the
 Insurances as soon as such action is instituted or it becomes apparent to the
 Borrower that it is likely to be instituted, unless it is clear that the
 legal or administrative action cannot be considered material in the context
 of any Finance Document.

 
	
  

 	
  

 	
  

 
	
 11.12

 	
  

 	
 No amendment to Shipbuilding Contract, Transfer Agreement
 or Refund Guarantee. The
 Borrower will not agree to any amendment or supplement to, or waive or fail
 to enforce, the Shipbuilding Contract, the Transfer Agreement or the Refund
 Guarantee or any of their respective provisions except as permitted by this
 Agreement and the other Finance Documents.

 
	
  

 	
  

 	
  

 
	
 11.13

 	
  

 	
 Principal place of business. The Borrower will maintain its place of
 business, and keep its corporate documents and records, at the address stated
 at the commencement of this Agreement; and the Borrower will not establish,
 or do anything as a result of which it would be deemed to have, a place of
 business in any country other than Bermuda.

 
	
  

 	
  

 	
  

 
	
 11.14

 	
  

 	
 Confirmation of no default. The Borrower will, within 2 Business Days
 after service by the Agent of a written request, serve on the Agent a notice
 which is signed by 2 directors of the Borrower and which:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 states
 that no Event of Default or Potential Event of Default has occurred; or

 

26

	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 states
 that no Event of Default or Potential Event of Default has occurred, except
 for a specified event or matter, of which all material details are given.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent may serve requests under this Clause 11.14 from time to time but only
 if asked to do so by a Lender or Lenders having Contributions exceeding 10
 per cent. of the Loan or (if the Loan has not been made) Commitments
 exceeding 10 per cent of the Total Commitments; and this Clause 11.14 does
 not affect the Borrower’s obligations under Clause 11.15.

 
	
  

 	
  

 	
  

 
	
 11.15

 	
  

 	
 Notification of default. The Borrower will notify the Agent as soon
 as the Borrower becomes aware of:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the
 occurrence of an Event of Default or a Potential Event of Default; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any
 matter which indicates that an Event of Default or a Potential Event of
 Default may have occurred; 

and will keep the Agent fully up-to-date with all
 developments.

 
	
  

 	
  

 	
  

 
	
 11.16

 	
  

 	
 Provision of further information. The Borrower will, as soon as practicable
 after receiving the request, provide the Agent with any additional financial
 or other information relating:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 to
 the Borrower, the Ship, the Earnings or the Insurances; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 to
 any other matter relevant to, or to any provision of, a Finance Document,

 which may be requested by the Agent, the Security Trustee or any Lender at
 any time.

 
	
  

 	
  

 	
  

 
	
 11.17

 	
  

 	
 Provision of copies and translation of documents. The Borrower will supply the Agent with a
 sufficient number of copies of the documents referred to above to provide 1
 copy for each Creditor Party; and if the Agent so requires in respect of any
 of those documents, the Borrower will provide a certified English translation
 prepared by a translator approved by the Agent.

 
	
  

 	
  

 	
  

 
	
 11.18

 	
  

 	
  “Know your customer” checks. If:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the
 introduction of or any change in (or in the interpretation, administration or
 application of) any law or regulation made after the date of this Agreement;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any
 change in the status of the Borrower or any Security Party (including,
 without limitation, a change in the composition of their shareholders) after
 the date of this Agreement; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 a
 proposed assignment or transfer by a Lender of any of its rights and
 obligations under this Agreement to a party that is not a Lender prior to
 such assignment or transfer, 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 obliges
 the Agent or any Lender (or, in the case of paragraph (c), any prospective
 new Lender) to comply with “know your customer” or similar identification
 procedures in circumstances where the necessary information is not already
 available to it, the Borrower shall promptly upon the request of the Agent or
 the Lender concerned supply, or procure the supply of, such documentation and
 other evidence as is reasonably requested by the Agent (for itself or on
 behalf of any Lender) or the Lender concerned (for itself or, in the case of
 the event described in paragraph (c), on behalf of any prospective new
 Lender) in order for the Agent, the Lender concerned or, in the case of the
 event described in paragraph (c), any prospective new Lender to carry out and
 be satisfied it has complied with all necessary “know your customer” or other
 similar checks under all applicable laws and regulations pursuant to the
 transactions contemplated in the Finance Documents.

 

27

	
  

 	
  

 	
  

 
	
 11.19

 	
  

 	
 Termination of Approved Charter or Replacement Charter. Upon termination or expiry of the Approved
 Charter or the Replacement Charter, the Borrower shall, within 30 days after
 the date of such termination or cancellation, deposit $20,000,000 in an
 account with the Account Bank and the Borrower shall execute security, in
 favour of the Security Trustee (on behalf of the Lenders) and acceptable to
 the Lenders, over such account. Such cash collateral shall be released to the
 Borrower upon the Borrower having entered into a Replacement Charter (or, as
 the case may be, another Replacement Charter) and the Ship having been
 delivered and accepted under such Replacement Charter.

 
	
  

 	
  

 	
  

 
	
 11.20

 	
  

 	
 Approved Charter non-extension

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 If
 the Approved Charterer does not exercise its option to extend the Approved
 Charter and subject to Clause 11.20(b), with effect on and from 12 months
 prior to the expiry of the Approved Charter, the Borrower shall on each
 Repayment Date pursuant to Clause 8.1 transfer 90 per cent. of any free cash
 (after deductions for operating expenses (including debt service) in relation
 to the Ship but otherwise the Borrower undertakes not to withdraw or transfer
 any other amount from the Earnings Account) on the Earnings Account (up to
 $10,000,000 in aggregate) to an account with the Account Bank and shall
 execute security, in favour of the Security Trustee (on behalf of the
 Lenders) and acceptable to the Lenders, over such account (with the monies in
 such secured account (including any interest thereon) only being used for
 repaying, on the final Repayment Date, the Loan, and making the payments
 referred to in Clause 8.3, and thereafter returned to the Borrower).

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 However,
 if Clause 11.20(a) applies but subsequently the Borrower enters into a
 Replacement Charter and the Ship is delivered and accepted under such
 Replacement Charter, whereupon the monies in the secured account referred to
 in Clause 11.20(a) shall be released to the Borrower and Clause 11.20(a)
 shall thereupon cease to apply.

 
	
  

 	
  

 	
  

 
	
 11.21

 	
  

 	
 Financial covenants.

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 In
 this Clause 11.21 and any compliance certificate delivered pursuant to Clause
 11.6(d):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “Excluded Companies” means the Counter-Guarantors, GasLog and
 GasLog Carriers and each subsidiary of either Counter-Guarantor, GasLog or
 GasLog Carriers and, in the singular, means any of them;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog Group” means GasLog and its subsidiaries;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog Group’s Cash” means, at any date of determination under
 this Agreement, the aggregate value on the date of determination of the
 GasLog Group’s credit balances on any deposit, savings or current account and
 the GasLog Group’s cash in hand, each as determined on a consolidated basis
 in accordance with IFRS, but excluding any such credit balances and cash then
 subject to a Security Interest (other than any Security Interest arising
 under a Finance Document);

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog Group’s Cash Equivalent” means, at any date of determination under
 this Agreement, the aggregate value of:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 each
 certificate of deposit maturing within 1 year after the date of determination
 and issued by either the Agent or any other bank or financial institution
 approved by the Agent;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 each
 investment in marketable debt obligations issued or guaranteed by the
 government of the United States of America or any member state of the
 European Economic Area and having a rating of AAA from Standard & Poor’s
 Ratings Group or the equivalent with any other principal credit rating agency
 in the United States of America or Europe, or by an instrumentality or agency
 of any of them having an

 

28

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 equivalent
 credit rating, maturing within 1 year after the date of determination and not
 convertible or exchangeable to any other security;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 each
 commercial paper not convertible or exchangeable to any other security:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 for
 which a recognised trading market exists;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 issued
 by an issuer incorporated in the United States of America or any member state
 of the European Economic Area;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 which
 matures within 1 year after the date of determination; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iv)

 	
 which
 has a credit rating of either A-l or higher by Standard & Poor’s Rating
 Services or Fl or higher by Fitch Ratings Ltd or P-l or higher by Moody’s
 Investor Services Limited or, if no rating is available in respect of the
 commercial paper, the issuer of which has, in respect of its long-term
 unsecured and non-credit enhanced debt obligations, an equivalent rating;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 each
 Sterling bill of exchange eligible for rediscount at the Bank of England and
 accepted by a bank or financial institution approved by the Agent (or their
 dematerialised equivalent);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 each
 investment in a money market fund which:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 has
 a credit rating of either A-l or higher by Standard & Poor’s Rating
 Services or Fl or higher by Fitch Ratings Ltd or P-l or higher by Moody’s
 Investor Services Limited;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 invests
 substantially all its assets in securities of the types described in
 paragraphs (a) to (d) above; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 can
 be turned into cash on not more than 30 days’ notice; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 each
 other debt security approved by the Majority Lenders,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 in
 each case as determined on a consolidated basis in accordance with IFRS, to
 which any member of the GasLog Group is alone (or together with any other
 member of the GasLog Group) beneficially entitled at that time and which is
 not issued or guaranteed by any Excluded Company nor subject to any Security
 Interest (other than any Security Interest arising under a Finance Document);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog Group’s Current Assets” means, at any date of determination
 under this Agreement, the amount of the current assets of the GasLog Group
 determined on a consolidated basis in accordance with IFRS and as shown in
 the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog Group’s Current Liabilities” means, at any date of determination under
 this Agreement, the amount of the current liabilities of the GasLog Group
 determined on a consolidated basis in accordance with IFRS and as shown in
 the GasLog Group’s Latest Accounts (but excluding the current portion of any
 long term interest bearing debt);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog Group’s Debt Service” means, at any date of determination under
 this Agreement, the aggregate amount of interest, other finance charges (in
 each case, whether or not paid, payable or capitalised) and principal accrued
 by the GasLog Group in respect of borrowings including:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the interest element of
 leasing and hire purchase payments;

 

29

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 commitment fees,
 commissions, arrangement fees and guarantee fees; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 amounts in the nature
 of interest payable in respect of any shares other than equity share capital,

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 adjusted (but without
 double counting) by:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 adding back the net
 amount payable (or deducting the net amount receivable) by members of the
 GasLog Group under any interest or (so far as they relate to interest)
 currency hedging arrangements; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 deducting interest
 income of the GasLog Group to the extent freely distributable to a member of
 the GasLog Group in cash,

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 each as determined on a
 consolidated basis in accordance with IFRS and as shown in the GasLog Group’s
 Latest Accounts;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s EBITDA” means, at any date of determination under
 this Agreement, the profit on ordinary activities before taxation of the
 GasLog Group, adjusted by:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 adding back GasLog
 Group’s Interest Payable;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 deducting GasLog
 Group’s Interest Receivable;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 taking no account of
 any exceptional or extraordinary item;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 adding back
 depreciation and amortisation;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 deducting its share of
 profits from affiliates; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 adding back its loss of
 profits from affiliates;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 determined, in each
 case, on a consolidated basis in accordance with IFRS and as shown in the
 GasLog Group’s Latest Accounts;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Interest Payable” means, at any date of
 determination under this Agreement, all interest (including, without limitation,
 all net interest payable under interest rate swaps), all fees (including, but
 not limited to, commitment fees) and periodic financing charges including
 commissions, discounts and the interest element of rental payments or finance
 or capital leases (whether, in each case, paid, payable or capitalised), and
 all other costs, charges and expenses incurred by the GasLog Group in
 effecting, servicing or maintaining its GasLog Group’s Total Interest Bearing
 Debt determined on a consolidated basis in accordance with IFRS and as shown
 in the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Interest Receivable” means, at any date of
 determination under this Agreement, all interest (including, without
 limitation, all net interest receivable under interest rate swaps), all fees
 (including, but not limited to, commitment fees) and periodic financing
 charges including commissions, discounts and the interest element of rental
 payments or finance or capital leases (whether, in each case, paid, payable or
 capitalised), and all other costs, charges and expenses received or
 receivable by the GasLog Group in connection with any Financial Indebtedness
 of a type referred to in the definition of GasLog Group’s Total Interest
 Bearing Debt determined on a consolidated basis in accordance with IFRS and
 as shown in the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Latest Accounts” means, at any date, the
 consolidated accounts of the GasLog Group most recently delivered to the
 Agent pursuant to clause 11.3 of the Guarantee executed by GasLog;

 

30

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Market Adjusted Net Worth” means, at any date of determination under this
 Agreement, the GasLog Group’s Total Capitalisation adjusted to reflect the
 market value of the ships and all other assets owned by the GasLog Group,
 less GasLog Group’s Total Debt;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Total Capitalisation” means, at any date of
 determination under this Agreement, the amount of the total assets of the
 GasLog Group determined on a consolidated basis in accordance with IFRS and
 as shown in the GasLog Group’s Latest Accounts;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Total Debt” means, at any date of determination
 under this Agreement, the amount of the total debt of the GasLog Group
 determined on a consolidated basis in accordance with IFRS and as shown in
 the GasLog Group’s Latest Accounts (including, for the avoidance of doubt,
 any negative mark-to-market for any currency or interest rate swaps);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Total Interest Bearing Debt” means, in respect of
 the GasLog Group, at any time the aggregate of the following:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the outstanding
 principal amount of any moneys borrowed or raised;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the outstanding
 principal amount of any acceptance under any acceptance credit;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the outstanding
 principal amount of any bond, note, debenture, loan stock or other similar
 instrument;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the capitalised element
 of indebtedness under a finance or capital lease;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 the outstanding
 principal amount of all moneys owing in connection with the sale or
 discounting of receivables (otherwise than on a non-recourse basis);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 the outstanding
 principal amount of any indebtedness arising from any deferred payment
 agreements arranged primarily as a method of raising finance or financing the
 acquisition of an asset;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 any fixed or minimum
 premium payable on the repayment or redemption of any instrument referred to
 in paragraph (c) above;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 the outstanding
 principal amount of any indebtedness arising in connection with any other
 transaction (including any forward sale or purchase agreement) which has the
 commercial effect of a borrowing; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 the outstanding
 principal amount of any indebtedness of any person of a type referred to in
 paragraphs (a) - (h) above which is the subject of a guarantee, indemnity or
 similar assurance against financial loss given by a member of the GasLog
 Group; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  “GasLog
 Group’s Working Capital” means GasLog Group’s Current
 Assets less GasLog Group’s Current Liabilities.

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 The Borrower shall
 ensure that the consolidated financial position of the GasLog Group on a
 consolidated basis is such that at all times during the Security Period (in
 the case of (ii) and (v) below commencing on the basis of the audited
 consolidated accounts for the financial year ending 31 December 2013):

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 GasLog Group’s Working
 Capital is not less than $0;

 

31

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 there
 is available to the GasLog Group at all times during the Security Period an
 aggregate amount of GasLog Group’s Cash and GasLog Group’s Cash Equivalents
 equal to at least the greater of (i) $20,000,000 and (ii) 3 per cent. of
 GasLog Group’s Total Interest Bearing Debt;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 the
 ratio of GasLog Group’s Total Debt to GasLog Group’s Total Capitalisation is
 not more than:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 prior
 to the date of a Qualified IPO, 0.70: 1; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 following
 the date of a Qualified IPO, 0.65: 1;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 GasLog
 Group’s Market Adjusted Net Worth is not less than:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 prior
 to the date of a Qualified IPO, $200,000,000; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 following
 the date of a Qualified IPO, $350,000,000; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 the
 ratio of GasLog Group’s EBITDA to GasLog Group’s Debt Service is not less
 than 1.10 : 1.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 The
 Borrower shall ensure that at all times during the Security Period there is
 standing to the credit of the Earnings Account an amount of at least
 US$1,500,000.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 The
 Borrower shall ensure that on or prior to the date falling 10 Business Days
 after a Qualified IPO, it is in compliance with the minimum security cover
 required to be maintained on the date of such Qualified IPO pursuant to
 Clause 15.1.

 
	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 CORPORATE
 UNDERTAKINGS

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.1

 	
  

 	
 General. The Borrower also undertakes with each Creditor Party to comply with
 the following provisions of this Clause 12 at all times during the Security
 Period except as the Agent may, with the authorisation of the Majority
 Lenders, otherwise permit.

 
	
  

 	
  

 	
  

 
	
 12.2

 	
  

 	
 Maintenance of status. The Borrower will maintain its separate corporate
 existence and remain in good standing under the laws of Bermuda.

 
	
  

 	
  

 	
  

 
	
 12.3

 	
  

 	
 Negative
 undertakings. The Borrower will not:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 carry
 on any business other than the ownership, chartering and operation of the
 Ship; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 declare
 or pay dividends if an Event of Default has occurred which is continuing or
 an Event of Default will result from the declaration or payment of such
 dividends;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 effect
 any form of redemption, purchase or return of share capital; or

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 provide
 any form of credit or financial assistance to:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 a
 person who is directly or indirectly interested in the Borrower’s share or
 loan capital; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 any
 company in or with which such a person is directly or indirectly interested
 or connected;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or
 enter into any transaction with or involving such a person or company on
 terms which are, in any respect, less favourable to the Borrower than those
 which it could obtain in a bargain made at arms’ length;

 

32

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 open
 or maintain any account with any bank or financial institution other than the
 Earnings Account, the Retention Account or any other account required to be
 opened and/or maintained pursuant to Clauses 11.19 and 11.20 for the purposes
 of the Finance Documents;

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 issue,
 allot or grant any person a right to any shares in its capital or repurchase
 or reduce its issued share capital;

 
	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 acquire
 any shares or other securities other than US or UK Treasury bills and
 certificates of deposit issued by major North American or European banks, or
 enter into any transaction in a derivative;

 
	
  

 	
  

 	
  

 
	
 (h)

 	
  

 	
 enter
 into any form of amalgamation, merger or de-merger or any form of
 reconstruction or reorganisation;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (i)

 	
  

 	
 incur
 any Financial Indebtedness other than as contemplated by this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (j)

 	
  

 	
 agree to purchase any vessel other than the Ship.

 
	
  

 	
  

 	
  

 
	
 12.4

 	
  

 	
 Share Ownership. The Borrower shall ensure and procure that all the shares issued by
 it are owned directly or indirectly by GasLog Carriers.

 
	
  

 	
  

 	
  

 
	
 13

 	
  

 	
 INSURANCE

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.1

 	
  

 	
 General. The Borrower also undertakes with each Creditor Party to comply with
 the following provisions of this Clause 13 at all times during the Security
 Period (after the Delivery Date) except as the Agent may, with the
 authorisation of the Majority Lenders, otherwise permit.

 
	
  

 	
  

 	
  

 
	
 13.2

 	
  

 	
 Maintenance of obligatory insurances. The Borrower shall keep the Ship insured at
 the expense of the Borrower against:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 fire
 and usual marine risks (including hull and machinery and excess risks);

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 war
 risks (including blocking and trapping);

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 protection
 and indemnity risks; and

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 any
 other risks against which the Security Trustee considers, having regard to
 practices and other circumstances prevailing at the relevant time, it would
 in the opinion of the Security Trustee be reasonable for the Borrower to
 insure and which are specified by the Security Trustee by notice to the
 Borrower.

 
	
  

 	
  

 	
  

 
	
 13.3

 	
  

 	
 Terms of obligatory insurances. The Borrower shall effect such insurances:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 in
 Dollars;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 in
 the case of fire and usual marine risks and war risks, in an amount on an
 agreed value basis at least the greater of (i) 120 per cent. of the Loan and
 (ii) the market value of the Ship; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 in
 the case of oil pollution liability risks, for an aggregate amount equal to
 the highest level of cover from time to time available under basic protection
 and indemnity club entry and in the international marine insurance market
 (currently $1,000,000,000);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 in
 relation to protection and indemnity risks in respect of the Ship’s full
 tonnage;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 on
 approved terms; and

 

33

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 through approved
 brokers and with approved insurance companies and/or underwriters or, in the
 case of war risks and protection and indemnity risks, in approved war risks
 and protection and indemnity risks associations.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.4

 	
  

 	
 Further
 protections for the Creditor Parties. In addition to the
 terms set out in Clause 13.3, the Borrower shall procure that the obligatory
 insurances shall:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 whenever the Security
 Trustee requires, name (or be amended to name) the Security Trustee as
 additional named assured for its rights and interests, warranted no
 operational interest and with full waiver of rights of subrogation against
 the Security Trustee, but without the Security Trustee thereby being liable
 to pay (but having the right to pay) premiums, calls or other assessments in
 respect of such insurance;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 name the Security
 Trustee as loss payee with such directions for payment as the Security
 Trustee may specify;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 provide that all
 payments by or on behalf of the insurers under the obligatory insurances to
 the Security Trustee shall be made without set-off, counterclaim or
 deductions or condition whatsoever;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 provide that such
 obligatory insurances shall be primary without right of contribution from
 other insurances which may be carried by the Security Trustee or any other
 Creditor Party; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 provide that the
 Security Trustee may make proof of loss if the Borrower fails to do so.

 
	
  

 	
  

 	
  

 
	
 13.5

 	
  

 	
 Renewal
 of obligatory insurances. The Borrower shall:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 at least 21 days before
 the expiry of any obligatory insurance:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 notify the Security
 Trustee of the brokers (or other insurers) and any protection and indemnity
 or war risks association through or with whom the Borrower proposes to renew
 that obligatory insurance and of the proposed terms of renewal; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 obtain the Security
 Trustee’s approval to the matters referred to in paragraph (i);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 at least 14 days before
 the expiry of any obligatory insurance, renew that obligatory insurance in
 accordance with the Security Trustee’s approval pursuant to paragraph (a);
 and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 procure that the
 approved brokers and/or the war risks and protection and indemnity
 associations with which such a renewal is effected shall promptly after the
 renewal notify the Security Trustee in writing of the terms and conditions of
 the renewal.

 
	
  

 	
  

 	
  

 
	
 13.6

 	
  

 	
 Copies
 of policies; letters of undertaking. The Borrower shall
 ensure that all approved brokers provide the Security Trustee with pro forma
 copies of all policies relating to the obligatory insurances which they are
 to effect or renew and of a letter or letters or undertaking in a form
 required by the Security Trustee and including undertakings by the approved
 brokers that:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 they will have endorsed
 on each policy, immediately upon issue, a loss payable clause and a notice of
 assignment complying with the provisions of Clause 13.4;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 they will hold such
 policies, and the benefit of such insurances, to the order of the Security
 Trustee in accordance with the said loss payable clause;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 they will advise the
 Security Trustee immediately of any material change to the terms of the
 obligatory insurances;

 

34

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 they will notify the
 Security Trustee, not less than 14 days before the expiry of the obligatory
 insurances, in the event of their not having received notice of renewal
 instructions from the Borrower or its agents and, in the event of their
 receiving instructions to renew, they will promptly notify the Security
 Trustee of the terms of the instructions; and

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 they will not set off
 against any sum recoverable in respect of a claim relating to the Ship under
 such obligatory insurances any premiums or other amounts due to them or any
 other person whether in respect of the Ship or otherwise, they waive any lien
 on the policies, or any sums received under them, which they might have in
 respect of such premiums or other amounts, and they will not cancel such
 obligatory insurances by reason of non-payment of such premiums or other
 amounts, and will arrange for a separate policy to be issued in respect of
 the Ship forthwith upon being so requested by the Security Trustee.

 
	
  

 	
  

 	
  

 
	
 13.7

 	
  

 	
 Copies
 of certificates of entry. The Borrower shall ensure that
 any protection and indemnity and/or war risks associations in which the Ship
 is entered provides the Security Trustee with:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 a certified copy of the
 certificate of entry for the Ship;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 a letter or letters of
 undertaking in such form as may be required by the Security Trustee; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 a certified copy of
 each certificate of financial responsibility for pollution by oil or other
 Environmentally Sensitive Material issued by the relevant certifying
 authority in relation to the Ship.

 
	
  

 	
  

 	
  

 
	
 13.8

 	
  

 	
 Deposit
 of original policies. The Borrower shall ensure that all
 policies relating to obligatory insurances are deposited with the approved
 brokers through which the insurances are effected or renewed.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.9

 	
  

 	
 Payment
 of premiums. The Borrower shall punctually pay all premiums
 or other sums payable in respect of the obligatory insurances and produce all
 relevant receipts when so required by the Security Trustee.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.10

 	
  

 	
 Guarantees.
 The Borrower shall ensure that any guarantees required by a
 protection and indemnity or war risks association are promptly issued and
 remain in full force and effect.

 
	
  

 	
  

 	
  

 
	
 13.11

 	
  

 	
 Compliance
 with terms of insurances. The Borrower shall neither do nor
 omit to do (nor permit to be done or not to be done) any act or thing which
 would or might render any obligatory insurance invalid, void, voidable or
 unenforceable or render any sum payable under an obligatory insurance repayable
 in whole or in part; and, in particular:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the Borrower shall take
 all necessary action and comply with all requirements which may from time to
 time be applicable to the obligatory insurances, and (without limiting the
 obligation contained in Clause 13.7(c)) ensure that the obligatory insurances
 are not made subject to any exclusions or qualifications to which the
 Security Trustee has not given its prior approval;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the Borrower shall not
 make any changes relating to the classification or classification society or
 manager or operator of the Ship approved by the underwriters of the
 obligatory insurances;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 the Borrower shall make
 (and promptly supply copies to the Agent of) all quarterly or other voyage
 declarations which may be required by the protection and indemnity risks
 association in which the Ship is entered to maintain cover for trading to the
 United States of America and Exclusive Economic Zone (as defined in the
 United States Oil Pollution Act 1990 or any other applicable legislation);
 and

 

35

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 the
 Borrower shall not employ the Ship, nor allow it to be employed, otherwise
 than in conformity with the terms and conditions of the obligatory
 insurances, without first obtaining the consent of the insurers and complying
 with any requirements (as to extra premium or otherwise) which the insurers
 specify.

 
	
  

 	
  

 	
  

 
	
 13.12

 	
  

 	
 Alteration to terms of insurances. The Borrower shall neither make or agree to
 any alteration to the terms of any obligatory insurance nor waive any right relating
 to any obligatory insurance.

 
	
  

 	
  

 	
  

 
	
 13.13

 	
  

 	
 Settlement of claims. The Borrower shall not settle, compromise
 or abandon any claim under any obligatory insurance for Total Loss or for a
 Major Casualty, and shall do all things necessary and provide all documents,
 evidence and information to enable the Security Trustee to collect or recover
 any moneys which at any time become payable in respect of the obligatory
 insurances.

 
	
  

 	
  

 	
  

 
	
 13.14

 	
  

 	
 Provision of information. In addition, the Borrower shall promptly
 provide the Security Trustee (or any persons which it may designate) with any
 information which the Security Trustee (or any such designated person)
 requests for the purpose of:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 obtaining
 or preparing any report from an independent marine insurance broker as to the
 adequacy of the obligatory insurances effected or proposed to be effected;
 and/or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 effecting,
 maintaining or renewing any such insurances as are referred to in Clause
 13.15 or dealing with or considering any matters relating to any such
 insurances;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and
 the Borrower shall, forthwith upon demand, indemnify the Security Trustee in
 respect of all fees and other expenses incurred by or for the account of the
 Security Trustee in connection with any such report as is referred to in
 paragraph (a).

 
	
  

 	
  

 	
  

 
	
 13.15

 	
  

 	
 Mortgagee’s interest and additional perils insurances. The Security Trustee shall be entitled from
 time to time to effect, maintain and renew a mortgagee’s interest additional
 perils insurance and a mortgagee’s interest marine insurance in such amounts,
 on such terms, through such insurers and generally in such manner as the
 Security Trustee may from time to time consider appropriate and the Borrower
 shall upon demand fully indemnify the Security Trustee in respect of all
 premiums and other expenses which are incurred in connection with or with a
 view to effecting, maintaining or renewing any such insurance or dealing
 with, or considering, any matter arising out of any such insurance.

 
	
  

 	
  

 	
  

 
	
 14

 	
  

 	
 SHIP
 COVENANTS

 
	
  

 	
  

 	
  

 
	
 14.1

 	
  

 	
 General. The Borrower also undertakes with each Creditor Party to comply with
 the following provisions of this Clause 14 at all times during the Security
 Period (after the Ship has been delivered to it under the Shipbuilding
 Contract) except as the Agent, with the authorisation of the Majority
 Lenders, may otherwise permit.

 
	
  

 	
  

 	
  

 
	
 14.2

 	
  

 	
 Ship’s name and registration. The Borrower shall keep the Ship registered
 in its name under the applicable Approved Flag; shall not do or allow to be
 done anything as a result of which such registration might be cancelled or
 imperilled; and shall not change the name or port of registry of the Ship.

 
	
  

 	
  

 	
  

 
	
 14.3

 	
  

 	
 Repair and classification. The Borrower shall keep the Ship in a good
 and safe condition and state of repair:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 consistent
 with first-class ship ownership and management practice;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 so
 as to maintain the Ship’s class (namely +A1, (E), Liquified gas carrier, ship
 type 2G (Membrane tank, Maximum pressure 25 KpaG and minimum temperature
 -163°C), SH, SH-DLA, SHCM, RES, +AMS, +ACCU, SFA (40), NIBS, +APS, +ES, PORT,
 POT,

 

36

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 CRC, DFD and UWILD)
 with American Bureau of Shipping free of all overdue recommendations and
 conditions of such Classification Society at American Bureau of Shipping free
 of overdue recommendations and conditions; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 so as to comply with
 all laws and regulations applicable to vessels registered at ports in the
 applicable Approved Flag State or to vessels trading to any jurisdiction to
 which the Ship may trade from time to time, including but not limited to the
 ISM Code and the ISPS Code.

 
	
  

 	
  

 	
  

 
	
 14.4

 	
  

 	
 Classification
 society undertaking. The Borrower shall instruct the
 classification society referred to in Clause 14.3 (and procure that the
 classification society undertakes with the Security Trustee):

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 to send to the Security
 Trustee, following receipt of a written request from the Security Trustee,
 certified true copies of all original class records held by the
 classification society in relation to the Ship;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 to allow the Security
 Trustee (or its agents), at any time and from time to time, to inspect the
 original class and related records of the Borrower and the Ship at the
 offices of the classification society and to take copies of them;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 to notify the Security
 Trustee immediately in writing if the classification society:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 receives notification
 from the Borrower or any person that the Ship’s classification society is to
 be changed; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 becomes aware of any
 facts or matters which may result in or have resulted in a change,
 suspension, discontinuance, withdrawal or expiry of the Ship’s class under
 the rules or terms and conditions of the Borrower’s or the Ship’s membership
 of the classification society;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 following receipt of a
 written request from the Security Trustee:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 to confirm that the
 Borrower is not in default of any of its contractual obligations or
 liabilities to the classification society and, without limiting the
 foregoing, that it has paid in full all fees or other charges due and payable
 to the classification society; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 if the Borrower is in
 default of any of its contractual obligations or liabilities to the
 classification society, to specify to the Security Trustee in reasonable
 detail the facts and circumstances of such default, the consequences of such
 default, and any remedy period agreed or allowed by the classification
 society.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.5

 	
  

 	
 Modification.
 The Borrower shall not make any modification or repairs to,
 or replacement of, the Ship or equipment installed on it which would or might
 materially alter the structure, type or performance characteristics of the
 Ship which would materially reduce its value.

 
	
  

 	
  

 	
  

 
	
 14.6

 	
  

 	
 Removal
 of parts. The Borrower shall not remove any material part
 of the Ship, or any item of equipment installed on, the Ship unless the part
 or item so removed is forthwith replaced by a suitable part or item which is
 in the same condition as or better condition than the part or item removed,
 is free from any Security Interest or any right in favour of any person other
 than the Security Trustee and becomes on installation on the Ship the
 property of the Borrower and subject to the security constituted by the
 Mortgage Provided that the
 Borrower may install equipment owned by a third party if the equipment can be
 removed without any risk of damage to the Ship.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.7

 	
  

 	
 Surveys.
 The Borrower shall submit the Ship regularly to all
 periodical or other surveys which may be required for classification purposes
 and, if so required by the Security Trustee provide the Security Trustee,
 with copies of all survey reports.

 

37

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.8

 	
  

 	
 Inspection.
 The Borrower shall permit the Security Trustee (by
 surveyors or other persons appointed by it for that purpose) to board the
 Ship at all reasonable times (without interfering with the Ship’s operations)
 to inspect its condition or to satisfy themselves about proposed or executed
 repairs and shall afford all proper facilities for such inspections.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.9

 	
  

 	
 Prevention
 of and release from arrest. The Borrower shall promptly
 discharge:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 all liabilities which
 give or may give rise to maritime or possessory liens on or claims
 enforceable against the Ship, the Earnings or the Insurances;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 all taxes, dues and
 other amounts charged in respect of the Ship, the Earnings or the Insurances;
 and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 all other outgoings
 whatsoever in respect of the Ship, the Earnings or the Insurances;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and, forthwith upon
 receiving notice of the arrest of the Ship, or of its detention in exercise
 or purported exercise of any lien or claim, the Borrower shall procure its
 release by providing bail or otherwise as the circumstances may require.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.10

 	
  

 	
 Compliance
 with laws etc. The Borrower shall:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 comply, or procure compliance
 with the ISM Code, the ISPS Code, all Environmental Laws and all other laws
 or regulations relating to the Ship, its ownership, operation and management
 or to the business of the Borrower;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 not employ the Ship nor
 allow its employment in any manner contrary to any law or regulation in any
 relevant jurisdiction including but not limited to the ISM Code and the ISPS
 Code; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 in the event of
 hostilities in any part of the world (whether war is declared or not), not
 cause or permit it to enter or trade to any zone which is declared a war zone
 by any government or by the Ship’s war risks insurers unless the prior
 written consent of the Security Trustee has been given and the Borrower has
 (at its expense) effected any special, additional or modified insurance cover
 which the Security Trustee may require.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.11

 	
  

 	
 Provision
 of information. The Borrower shall promptly provide the
 Security Trustee with any information which, in the opinion of the Security
 Trustee, it reasonably requests regarding:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the Ship, its
 employment, position and engagements;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the Earnings and
 payments and amounts due to the Ship’s master and crew;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 any expenses incurred,
 or likely to be incurred, in connection with the operation, maintenance or
 repair of the Ship and any payments made in respect of the Ship;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 any towages and
 salvages;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 the Borrower’s, the
 Approved Manager’s or the Ship’s compliance with the ISM Code and the ISPS
 Code,

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and, upon the Security
 Trustee’s request, provide copies of any current charter relating to the Ship
 and of any current charter guarantee (if available), and copies of the
 Borrower’s or the Approved Manager’s Document of Compliance.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.12

 	
  

 	
 Notification
 of certain events. The Borrower shall promptly notify the
 Security Trustee by fax, confirmed forthwith by letter, of:

 

38

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 any casualty which is
 or is likely to be or to become a Major Casualty;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any occurrence as a
 result of which the Ship has become or is, by the passing of time or
 otherwise, likely to become a Total Loss;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 any requirement or
 recommendation made by any insurer or classification society or by any
 competent authority which is not promptly complied with;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 any arrest or detention
 of the Ship, any exercise or purported exercise of any lien on the Ship or
 its Earnings or any requisition of the Ship for hire;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 any intended dry
 docking of the Ship;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 any Environmental Claim
 made against the Borrower or in connection with the Ship, or any
 Environmental Incident;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 any claim for breach of
 the ISM Code or the ISPS Code being made against the Borrower, the Approved
 Manager or otherwise in connection with the Ship; or

 
	
  

 	
  

 	
  

 
	
 (h)

 	
  

 	
 any other matter, event
 or incident, actual or threatened, the effect of which will or could lead to
 the ISM Code or the ISPS Code not being complied with;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and the Borrower shall
 keep the Security Trustee advised in writing on a regular basis and in such
 detail as the Security Trustee shall require of the Borrower’s, the Approved
 Manager’s or any other person’s response to any of those events or matters.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.13

 	
  

 	
 Restrictions
 on chartering, appointment of managers etc. The Borrower
 shall not:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 let the Ship on demise
 charter for any period;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 save and except for the
 Approved Charter, enter into any time or consecutive voyage charter in
 respect of the Ship for a term which exceeds, or which by virtue of any
 optional extensions may exceed, 13 months;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 enter into any charter
 in relation to the Ship under which more than 2 months’ hire (or the
 equivalent) is payable in advance;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 charter the Ship
 otherwise than on bona fide arm’s length terms at the time when the Ship is
 fixed;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 appoint a manager of
 the Ship other than the Approved Manager or agree to any material alteration
 to the terms of the Approved Manager’s appointment;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 de-activate or lay up
 the Ship; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 put the Ship into the
 possession of any person for the purpose of work being done upon it in an
 amount exceeding or likely to exceed $1,000,000 (or the equivalent in any
 other currency) unless either (i) that person has first given to the Security
 Trustee and in terms satisfactory to it a written undertaking not to exercise
 any lien on the Ship or its Earnings for the cost of such work or for any
 other reason or (ii) the Borrower has established to the reasonable
 satisfaction of the Security Trustee that it has sufficient reserves to pay
 for the cost of such work.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.14

 	
  

 	
 Notice
 of Mortgage. The Borrower shall keep the Mortgage
 registered against the Ship as a valid first priority mortgage, carry on
 board the Ship a certified copy of the Mortgage and place and maintain in a
 conspicuous place in the navigation room and the Master’s cabin of the Ship a
 framed printed notice stating that the Ship is mortgaged by the Borrower to
 the Security Trustee.

 

39

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.15

 	
  

 	
 Sharing of Earnings. The Borrower shall not enter into any
 agreement or arrangement for the sharing of any Earnings without prior
 consultations with the Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.16

 	
  

 	
 ISPS Code. The Borrower shall comply with the ISPS Code and in particular,
 without limitation, shall:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 procure
 that the Ship owned by it and the company responsible for that Ship’s
 compliance with the ISPS Code comply with the ISPS Code; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 maintain
 for the Ship an ISSC; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 notify
 the Agent immediately in writing of any actual or threatened withdrawal,
 suspension, cancellation or modification of the ISSC.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15

 	
  

 	
 SECURITY
 COVER

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.1

 	
  

 	
 Minimum required security cover. Clause 15.2 applies if (after the Ship has
 been delivered to it under the Shipbuilding Contract) the Agent notifies the
 Borrower that:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the
 market value (determined as provided in Clause 15.3) of the Ship; plus

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the
 net realisable value of any additional security previously provided under
 this Clause 15

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 is
 below the Relevant Percentage of the Loan, any interest which has accrued on
 the Loan at the time the Agent applies the test in this Clause 15.1 and any
 amount which would be payable under Clause 21.1(b) if, at the time the Agent
 applies the test in this Clause 15.1, the Borrower was required to prepay the
 Loan on that date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In
 this Clause 15.1, “Relevant Percentage” means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 on
 the date of a Qualified IPO, 142.8 per cent.; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 at
 all other times, 120 per cent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.2

 	
  

 	
 Provision of additional security; prepayment. If the Agent serves a notice on the
 Borrower under Clause 15.1, the Borrower shall, within, in the case of Clause
 15.1(i), 10 Business Days and, in the case of Clause 15.1(ii), 1 month after
 the date on which the Agent’s notice is served, either:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 provide,
 or ensure that a third party provides, additional security which, in the
 reasonable opinion of the Majority Lenders, has a net realisable value at
 least equal to the shortfall and is documented in such terms as the Agent
 may, with the authorisation of the Majority Lenders, approve or require; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 prepay
 such part (at least) of the Loan as will eliminate the shortfall.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.3

 	
  

 	
 Valuation of Ship. The market value of the Ship at any date is
 that shown by a valuation prepared:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 as
 at a date not more than 14 days previously;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 by
 an independent sale and purchase shipbroker speciliasing in the LNG sector
 from the list of shipbrokers referred to in Schedule 5;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 with
 or without physical inspection of the Ship (as the Agent may require);

 

40

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 on
 the basis of a sale for prompt delivery for cash on normal arm’s length
 commercial terms as between a willing seller and a willing buyer, free of any
 existing charter or other contract of employment;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 after
 deducting the estimated amount of the usual and reasonable expenses which
 would be incurred in connection with the sale.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.4

 	
  

 	
 Value of additional vessel security. The net realisable value of any additional
 security which is provided under Clause 15.2 and which consists of a Security
 Interest over a vessel shall be that shown by a valuation complying with the
 requirements of Clause 15.3.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.5

 	
  

 	
 Valuations binding. Any valuation under Clause 15.2, 15.3 or
 15.4 shall be binding and conclusive as regards the Borrower, as shall be any
 valuation which the Majority Lenders make of any additional security which
 does not consist of or include a Security Interest.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.6

 	
  

 	
 Provision of information. The Borrower shall promptly provide the
 Agent and any shipbroker or expert acting under Clause 15.3 or 15.4 with any
 information which the Agent or the shipbroker or expert may request for the
 purposes of the valuation; and, if the Borrower fails to provide the information
 by the date specified in the request, the valuation may be made on any basis
 and assumptions which the shipbroker or the Majority Lenders (or the expert
 appointed by them) consider prudent,

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.7

 	
  

 	
 Payment of valuation expenses. Without prejudice to the generality of the
 Borrower’s obligations under Clauses 20.2, 20.3 and 21.3, the Borrower shall,
 on demand, pay the Agent the amount of the fees and expenses of any
 shipbroker or expert instructed by the Agent under this Clause and all legal
 and other expenses incurred by any Creditor Party in connection with any
 matter arising out of this Clause. Provided
 that as long as no Event of Default shall have occurred, the
 Borrower shall not be obliged to pay any such fees and expenses in respect of
 more than two valuations of the Ship in any calendar year.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15.8

 	
  

 	
 Application of prepayment. Clause 8 shall apply in relation to any
 prepayment pursuant to Clause 15.2(b).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16

 	
  

 	
 PAYMENTS
 AND CALCULATIONS

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.1

 	
  

 	
 Currency and method of payments. All payments to be made by the Lenders or
 by the Borrower under a Finance Document shall be made to the Agent or to the
 Security Trustee, in the case of an amount payable to it:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 in
 same day Dollar funds settled through the New York Clearing House Interbank
 Payments System (or in such other Dollar funds and/or settled in such other
 manner as the Agent shall specify as being customary at the time for the settlement
 of international transactions of the type contemplated by this Agreement);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 in
 the case of an amount payable by a Lender to the Agent or by the Borrower to
 the Agent or any Lender, to the account of the Agent at Nordea Bank Finland
 Plc, New York Branch (SWIFT: NDEAUS3N) (Account No 7443423001), or to such
 other account with such other bank as the Agent may from time to time notify
 to the Borrower and the other Creditor Parties; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 in
 the case of an amount payable to the Security Trustee, to such account as it
 may from time to time notify to the Borrower and the other Creditor Parties.

 
	
  

 	
  

 	
  

 
	
 16.2

 	
  

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

 

41

	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and interest shall be payable during any extension under paragraph
 (a) at the rate payable on the original due date.

 
	
  

 	
  

 	
  

 
	
 16.3

 	
  

 	
 Basis for calculation of periodic payments.
 All interest and commitment fee and any other payments under any Finance
 Document which are of an annual or periodic nature shall accrue from day to
 day and shall be calculated on the basis of the actual number of days elapsed
 and a 360 day year.

 
	
  

 	
  

 	
  

 
	
 16.4

 	
  

 	
 Distribution of payments to Creditor
 Parties. Subject to Clauses 16.5, 16.6 and 16.7:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 any amount received by the Agent under a Finance Document for
 distribution or remittance to a Lender or the Security Trustee shall be made
 available by the Agent to that Lender or, as the case may be, the Security
 Trustee by payment, with funds having the same value as the funds received,
 to such account as the Lender or the Security Trustee may have notified to
 the Agent not less than 5 Business Days previously; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 amounts to be applied in satisfying amounts of a particular category
 which are due to the Lenders generally shall be distributed by the Agent to
 each Lender pro rata to the amount in that category which is due to it.

 
	
  

 	
  

 	
  

 
	
 16.5

 	
  

 	
 Permitted deductions by Agent.
 Notwithstanding any other provision of this Agreement or any other Finance
 Document, the Agent may, before making an amount available to a Lender,
 deduct and withhold from that amount any sum which is then due and payable to
 the Agent from that Lender under any Finance Document or any sum which the
 Agent is then entitled under any Finance Document to require that Lender to
 pay on demand.

 
	
  

 	
  

 	
  

 
	
 16.6

 	
  

 	
 Agent only obliged to pay when monies
 received. Notwithstanding any other provision of
 this Agreement or any other Finance Document, the Agent shall not be obliged
 to make available to the Borrower or any Lender any sum which the Agent is
 expecting to receive for remittance or distribution to the Borrower or that
 Lender until the Agent has satisfied itself that it has received that sum.

 
	
  

 	
  

 	
  

 
	
 16.7

 	
  

 	
 Refund to Agent of monies not received.
 If and to the extent that the Agent makes available a sum to the Borrower or
 a Lender, without first having received that sum, the Borrower or (as the
 case may be) the Lender concerned shall, on demand:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 refund the sum in full to the Agent; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 pay to the Agent the amount (as certified by the Agent) which will
 indemnify the Agent against any funding or other loss, liability or expense
 incurred by the Agent as a result of making the sum available before
 receiving it.

 
	
  

 	
  

 	
  

 
	
 16.8

 	
  

 	
 Agent may assume receipt.
 Clause 16.7 shall not affect any claim which the Agent has under the law of
 restitution, and applies irrespective of whether the Agent had any form of
 notice that it had not received the sum which it made available.

 
	
  

 	
  

 	
  

 
	
 16.9

 	
  

 	
 Creditor Party accounts.
 Each Creditor Party shall maintain accounts showing the amounts owing to it
 by the Borrower and each Security Party under the Finance Documents and all
 payments in respect of those amounts made by the Borrower and any Security
 Party.

 
	
  

 	
  

 	
  

 
	
 16.10

 	
  

 	
 Agent’s memorandum account.
 The Agent shall maintain a memorandum account showing the amounts advanced by
 the Lenders and all other sums owing to the Agent, the Security Trustee and
 each Lender from the Borrower and each Security Party under the

 

42

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Finance Documents and all payments in respect of those amounts made
 by the Borrower and any Security Party.

 
	
  

 	
  

 	
  

 
	
 16.11

 	
  

 	
 Accounts prima facie evidence.
 If any accounts maintained under Clauses 16.9 and 16.10 show an amount to be
 owing by the Borrower or a Security Party to a Creditor Party, those accounts
 shall be prima facie evidence that that amount is owing to that Creditor
 Party.

 
	
  

 	
  

 	
  

 
	
 17

 	
  

 	
 APPLICATION OF RECEIPTS

 
	
  

 	
  

 	
  

 
	
 17.1

 	
  

 	
 Normal order of application.
 Except as any Finance Document may otherwise provide, any sums which are
 received or recovered by any Creditor Party under or by virtue of any Finance
 Document shall be applied:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 FIRST: in or towards payment pro rata of any unpaid fees, costs and
 expenses of the Agent and the Security Trustee under the Finance Documents;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 SECONDLY: in or towards payment pro rata of any accrued interest or
 commission due but unpaid under this Agreement;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 THIRDLY: in or towards payment pro rata of any principal due but
 unpaid under this Agreement;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 FOURTHLY: in or towards payment pro rata of any other amounts due but
 unpaid under any Finance Document;

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 FIFTHLY: in retention of an amount equal to any amount not then due
 and payable under any Finance Document but which the Agent, by notice to the
 Borrower, the Security Parties and the other Creditor Parties, states in its
 opinion will or may become due and payable in the future and, upon those
 amounts becoming due and payable, in or towards satisfaction of them in
 accordance with the provisions of Clause 17.1 (a), 17.1(b), 17.1(c) and
 17.1(d); and

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 SIXTHLY: any surplus shall be paid to the Borrower or to any other
 person appearing to be entitled to it.

 
	
  

 	
  

 	
  

 
	
 17.2

 	
  

 	
 Variation of order of application.
 The Agent may, with the authorisation of the Majority Lenders, by notice to
 the Borrower, the Security Parties and the other Creditor Parties provide for
 a different manner of application from that set out in Clause 17.1 either as
 regards a specified sum or sums or as regards sums in a specified category or
 categories.

 
	
  

 	
  

 	
  

 
	
 17.3

 	
  

 	
 Notice of variation of order of
 application. The Agent may give notices under Clause
 17.2 from time to time; and such a notice may be stated to apply not only to
 sums which may be received or recovered in the future, but also to any sum
 which has been received or recovered on or after the third Business Day
 before the date on which the notice is served.

 
	
  

 	
  

 	
  

 
	
 17.4

 	
  

 	
 Appropriation rights overridden.
 This Clause 17 and any notice which the Agent gives under Clause 17.2 shall
 override any right of appropriation possessed, and any appropriation made, by
 the Borrower or any Security Party.

 
	
  

 	
  

 	
  

 
	
 18

 	
  

 	
 APPLICATION OF EARNINGS

 
	
  

 	
  

 	
  

 
	
 18.1

 	
  

 	
 Payment of Earnings.
 The Borrower undertakes with each Creditor Party to ensure that, throughout
 the Security Period (and subject only to the provisions of the General
 Assignment), all the Earnings are paid to the Earnings Account. The Earnings
 shall, subject to Clauses 11.20, 11.21(c) and 18.2, be available to the
 Borrower provided that no Event of Default has occurred and is continuing.

 

43

	
  

 	
  

 	
  

 
	
 18.2

 	
  

 	
 Monthly retentions.
 The Borrower undertakes with each Creditor Party to ensure that, in each
 calendar month of the Security Period, on such dates as the Agent may from
 time to time specify, there is transferred to the Retention Account out of
 the Earnings received in the Earnings Account during the preceding calendar
 month:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 one-third of the amount of the repayment instalment falling due under
 Clause 8 on the next Repayment Date; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the relevant fraction of the aggregate amount of interest on the Loan
 which is payable on the next due date for payment of interest under this
 Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The “relevant fraction” is a fraction of which the numerator is 1 and
 the denominator the number of months comprised in the then current Interest
 Period (or, if the period is shorter, the number of months from the later of
 the commencement of the current Interest Period or the last due date for
 payment of interest to the next due date for payment of interest under this
 Agreement).

 
	
  

 	
  

 	
  

 
	
 18.3

 	
  

 	
 Shortfall in Earnings.
 If the aggregate Earnings received in the Earnings Account are insufficient
 in any month for the required amount to be transferred to the Retention
 Account under Clause 18.2, the Borrower shall make up the amount of the
 insufficiency on demand from the Agent; but, without thereby prejudicing the
 Agent’s right to make such demand at any time, the Agent may, if so
 authorised by the Majority Lenders, permit the Borrower to make up all or
 part of the insufficiency by increasing the amount of any transfer under
 Clause 18.2 from the Earnings received in the next or subsequent months.

 
	
  

 	
  

 	
  

 
	
 18.4

 	
  

 	
 Application of retentions.
 Until an Event of Default or a Potential Event of Default occurs and is
 continuing, the Agent shall on each Repayment Date and on each due date for
 the payment of interest under this Agreement distribute to the Lenders in
 accordance with Clause 16.4 so much of the then balance on the Retention
 Account as equals:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the repayment instalment due on that Repayment Date; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the amount of interest payable on that interest payment date,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 in discharge of the Borrower’s liability for that repayment
 instalment or that interest and the Borrower hereby undertakes with each
 Creditor Party to instruct the Account Bank to make such payment to the Agent
 from the Retention Account for distribution to the Lenders in accordance with
 this Clause.

 
	
  

 	
  

 	
  

 
	
 18.5

 	
  

 	
 No release of accrued interest.
 Any interest accruing on the Retention Account shall be credited to the
 Retention Account but shall not be released to the Borrower until the end of
 the Security Period.

 
	
  

 	
  

 	
  

 
	
 18.6

 	
  

 	
 Location of accounts.
 The Borrower shall promptly:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 comply with any requirement of the Agent as to the location or
 re-location of the Earnings Account and the Retention Account (or either of
 them); and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 execute any documents which the Agent specifies to create or maintain
 in favour of the Security Trustee a Security Interest over (and/or rights of
 set-off, consolidation or other rights in relation to) the Earnings Account
 and the Retention Account.

 
	
  

 	
  

 	
  

 
	
 18.7

 	
  

 	
 Debits for expenses etc.
 The Agent shall be entitled (but not obliged) from time to time to debit the
 Earnings Account without prior notice in order to discharge any amount due
 and payable under Clause 20 or 21 to a Creditor Party or payment of which any
 Creditor Party has become entitled to demand under Clause 20 or 21 and the
 Borrower hereby undertakes with each Creditor Party to authorise the Account
 Bank to act according to the Agent’s instructions pursuant to this Clause.

 

44

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 18.8

 	
  

 	
 Borrower’s obligations unaffected.
 The provisions of this Clause 18 (as distinct from a distribution effected
 under Clause 18.4) do not affect:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the liability of the Borrower to make payments of principal and
 interest on the due dates; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any other liability or obligation of the Borrower or any Security
 Party under any Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
 19

 	
  

 	
 EVENTS OF DEFAULT

 
	
  

 	
  

 	
  

 	
  

 
	
 19.1

 	
  

 	
 Events of Default.
 An Event of Default occurs if:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the Borrower or any Security Party fails to pay when due or (if so
 payable) on demand any sum payable under a Finance Document or under any
 document relating to a Finance Document; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any breach occurs of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 Clause 9.2, 11.2, 11.3, 11.10, 11.13, 11.21(b), 11.21(d), 12.2, 12.3,
 12.4 or 15.1 of this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 clauses 11.13 and 11.14 of the Counter-Guarantee from
 Counter-Guarantor 2; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 clauses 11.13, 11.14 and 11.15 of the Guarantee from GasLog; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 clause 11.13 and 11.14 of the Counter-Guarantee from
 Counter-Guarantor 1; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 clause 11.12 of the Guarantee from GasLog Carriers; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 any breach by the Borrower or any Security Party occurs of any
 provision of a Finance Document (other than a breach covered by paragraphs
 (a) or (b)) which, in the opinion of the Majority Lenders, is capable of
 remedy, and such default continues unremedied 10 Business Days after written
 notice from the Agent requesting action to remedy the same; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 (subject to any applicable grace period specified in the Finance
 Document) any breach by the Borrower or any Security Party occurs of any
 provision of a Finance Document (other than a breach falling within
 paragraphs (a), (b) or (c)); or

 
	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 any representation, warranty or statement made or repeated by, or by
 an officer of, the Borrower or a Security Party in a Finance Document or in a
 Drawdown Notice or any other notice or document relating to a Finance
 Document is untrue or misleading when it is made or repeated; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 any of the following occurs in relation to any Financial Indebtedness
 of a Relevant Person (which, in the case of a Guarantor, exceeds $5,000,000
 and in the case of a Relevant Person other than a Guarantor, exceeds
 $1,000,000 (or in each case the equivalent in any other currency)):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 any Financial Indebtedness of a Relevant Person is not paid when due
 or, if so payable, on demand; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 any Financial Indebtedness of a Relevant Person becomes due and
 payable or capable of being declared due and payable prior to its stated
 maturity date as a consequence of any event of default; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 a lease, hire purchase agreement or charter creating any Financial
 Indebtedness of a Relevant Person is terminated by the lessor or owner or
 becomes capable of being terminated as a consequence of any termination
 event; or

 

45

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 any overdraft, loan, note issuance, acceptance credit, letter of
 credit, guarantee, foreign exchange or other facility, or any swap or other
 derivative contract or transaction, relating to any Financial Indebtedness of
 a Relevant Person ceases to be available or becomes capable of being
 terminated as a result of any event of default, or cash cover is required, or
 becomes capable of being required, in respect of such a facility as a result
 of any event of default; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 any Security Interest securing any Financial Indebtedness of a
 Relevant Person becomes enforceable; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 any of the following occurs in relation to a Relevant Person:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 a Relevant Person becomes, in the opinion of the Majority Lenders,
 unable to pay its debts as they fall due; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 any assets of a Relevant Person are subject to any form of execution,
 attachment, arrest, sequestration or distress in respect of a sum of, or sums
 aggregating, $1,000,000 (or $5,000,000 in the case of a Guarantor) or more or
 the equivalent in another currency; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 any administrative or other receiver is appointed over any asset of a
 Relevant Person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 an administrator is appointed (whether by the court or otherwise) in
 respect of a Relevant Person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 any formal declaration of bankruptcy or any formal statement to the
 effect that a Relevant Person is insolvent or likely to become insolvent is
 made by a Relevant Person or by the directors of a Relevant Person or, in any
 proceedings, by a lawyer acting for a Relevant Person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vi)

 	
 a provisional liquidator is appointed in respect of a Relevant
 Person, a winding up order is made in relation to a Relevant Person or a
 winding up resolution is passed by a Relevant Person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vii)

 	
 a resolution is passed, an administration notice is given or filed,
 an application or petition to a court is made or presented or any other step
 is taken by (aa) a Relevant Person, (bb) the members or directors of a
 Relevant Person, (cc) a holder of Security Interests which together relate to
 all or substantially all of the assets of a Relevant Person, or (dd) a
 government minister or public or regulatory authority of a Pertinent
 Jurisdiction for or with a view to the winding up of that or another Relevant
 Person or the appointment of a provisional liquidator or administrator in
 respect of that or another Relevant Person, or that or another Relevant
 Person ceasing or suspending business operations or payments to creditors,
 save that this paragraph does not apply to a fully solvent winding up of a
 Relevant Person other than the Borrower or a Guarantor which is, or is to be,
 effected for the purposes of an amalgamation or reconstruction previously
 approved by the Majority Lenders and effected not later than 3 months after
 the commencement of the winding up; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (viii)

 	
 an administration notice is given or filed, an application or
 petition to a court is made or presented or any other step is taken by a
 creditor of a Relevant Person (other than a holder of Security Interests
 which together relate to all or substantially all of the assets of a Relevant
 Person) for the winding up of a Relevant Person or the appointment of a
 provisional liquidator or administrator in respect of a Relevant Person in
 any Pertinent Jurisdiction, unless the proposed winding up, appointment of a
 provisional liquidator or administration is being contested in good faith, on
 substantial grounds and not with a view to some other insolvency law
 procedure being implemented instead and either (aa) the application or
 petition is dismissed or

 

46

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 withdrawn within 30 days of being made or presented, or (bb) within
 30 days of the administration notice being given or filed, or the other
 relevant steps being taken, other action is taken which will ensure that
 there will be no administration and (in both cases (aa) or (bb)) the Relevant
 Person will continue to carry on business in the ordinary way and without
 being the subject of any actual, interim or pending insolvency law procedure;
 or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ix)

 	
 a Relevant Person or its directors take any steps (whether by making
 or presenting an application or petition to a court, or submitting or
 presenting a document setting out a proposal or proposed terms, or otherwise)
 with a view to obtaining, in relation to that or another Relevant Person,
 any form of moratorium, suspension or deferral of payments, reorganisation of
 debt (or certain debt) or arrangement with all or a substantial proportion
 (by number or value) of creditors or of any class of them or any such
 moratorium, suspension or deferral of payments, reorganisation or arrangement
 is effected by court order, by the filing of documents with a court, by means
 of a contract or in any other way at all; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (x)

 	
 any meeting of the members or directors, or of any committee of the
 board or senior management, of a Relevant Person is held or summoned for the
 purpose of considering a resolution or proposal to authorise or take any
 action of a type described in paragraphs (iv) to (ix) or a step preparatory
 to such action, or (with or without such a meeting) the members, directors or
 such a committee resolve or agree that such an action or step should be taken
 or should be taken if certain conditions materialise or fail to materialise;
 or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (xi)

 	
 in a Pertinent Jurisdiction other than England, any event occurs, any
 proceedings are opened or commenced or any step is taken which, in the
 opinion of the Majority Lenders is similar to any of the foregoing; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (h)

 	
  

 	
 the Borrower ceases or suspends carrying on its business or a part of
 its business which, in the opinion of the Majority Lenders, is material in
 the context of this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (i)

 	
  

 	
 it becomes unlawful in any Pertinent Jurisdiction or impossible:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 for the Borrower or any Security Party to discharge any liability
 under a Finance Document or to comply with any other obligation which the
 Majority Lenders consider material under a Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 for the Agent, the Security Trustee or the Lenders to exercise or
 enforce any right under, or to enforce any Security Interest created by, a
 Finance Document; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (j)

 	
  

 	
 any official consent necessary to enable the Borrower to own, operate
 or charter the Ship or to enable the Borrower or any Security Party to
 comply with any provision which the Majority Lenders consider material of a
 Finance Document, the Shipbuilding Contract, the Transfer Agreement or the
 Approved Charter is not granted, expires without being renewed, is revoked or
 becomes liable to revocation or any condition of such a consent is not
 fulfilled; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (k)

 	
  

 	
 without the prior consent of the Majority Lenders (i) a change has
 occurred after the date of this Agreement in the legal ownership of any of
 the shares in the Borrower or (ii) a Material Change has occurred; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (l)

 	
  

 	
 any provision which the Majority Lenders consider material of a
 Finance Document proves to have been or becomes invalid or unenforceable, or
 a Security Interest created by a Finance Document proves to have been or
 becomes invalid or unenforceable or such a Security Interest proves to have
 ranked after, or loses its priority to, another Security Interest or any
 other third party claim or interest; or

 

47

	
  

 	
  

 	
  

 	
  

 
	
 (m)

 	
  

 	
 the security constituted by a Finance Document is in any way
 imperilled or in jeopardy; or

 
	
  

 	
  

 	
  

 
	
 (n)

 	
  

 	
 the Borrower has not entered into the Approved Charter at least five
 (5) days prior to the Drawdown Date of the second Advance; or

 
	
  

 	
  

 	
  

 
	
 (o)

 	
  

 	
 the Approved Charter is terminated before the end of the third year
 from the Delivery Date, becomes invalid or unenforceable or otherwise ceases
 to be in fall force and effect for any reason (other than through the
 effluxion of time or following the sale of the Ship) and the Approved Charter
 is not replaced within 30 days by another charter having similar
 characteristics to the Approved Charter, with a charterer, in a form and on
 terms acceptable to the Agent; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (p)

 	
  

 	
 without the prior written consent of the Agent (acting with the
 authorisation of the Majority Lenders), the Holding Company ceases to hold
 the legal title and beneficial ownership of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 on or prior to the date of a Qualified IPO, 70 per cent. of the
 issued and allotted shares of GasLog;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 following the date of a Qualified IPO and on or before the first
 anniversary of a Qualified IPO, 30 per cent. of the issued and allotted
 shares of GasLog;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 following the first anniversary and on or before the second
 anniversary of a Qualified IPO, 25 per cent. of the issued and allotted
 shares of GasLog;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 following the second anniversary and on or before the third
 anniversary of a Qualified IPO, 20 per cent. of the issued and allotted
 shares of GasLog; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 following the third anniversary of a Qualified IPO, 15 per cent. of
 the issued and allotted shares of GasLog; or

 
	
  

 	
  

 	
  

 	
  

 
	
 (q)

 	
  

 	
 any other event occurs or any other circumstances arise or develop
 including, without limitation:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 a change in the financial position, state of affairs or prospects of
 any Relevant Person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 any accident or other event involving the Ship or another vessel
 owned, chartered or operated by a Relevant Person;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 which materially and adversely affects the ability of the Borrower or
 a Guarantor to discharge its liabilities under the Finance Documents as they
 fall due.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.2

 	
  

 	
 Actions following an Event of Default.
 On, or at any time after, the occurrence of an Event of Default which is
 continuing:

 
	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the Agent may, and if so instructed by the Majority Lenders, the
 Agent shall:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

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

 

48

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 take any other action which, as a result of the Event of Default or
 any notice served under paragraph (i) or (ii), the Agent and/or the Lenders
 are entitled to take under any Finance Document or any applicable law; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the Security Trustee may, and if so instructed by the Agent, acting
 with the authorisation of the Majority Lenders, the Security Trustee shall
 take any action which, as a result of the Event of Default or any notice
 served under paragraph (a) (i) or (ii), the Security Trustee, the Agent
 and/or the Lenders are entitled to take under any Finance Document or any
 applicable law.

 
	
  

 	
  

 	
  

 
	
 19.3

 	
  

 	
 Termination of Commitments.
 On the service of a notice under Clause 19.2(a)(i), the Commitments and all
 other obligations of each Lender to the Borrower under this Agreement shall
 be cancelled.

 
	
  

 	
  

 	
  

 
	
 19.4

 	
  

 	
 Acceleration of Loan. On
 the service of a notice under Clause 19.2(a)(ii), the Loan, all accrued
 interest and all other amounts accrued or owing from the Borrower or any
 Security Party under this Agreement and every other Finance Document shall
 become immediately due and payable or, as the case may be, payable on demand.

 
	
  

 	
  

 	
  

 
	
 19.5

 	
  

 	
 Multiple notices; action without notice.
 The Agent may serve notices under Clauses 19.2(a)(i) or (ii) simultaneously
 or on different dates and it and/or the Security Trustee may take any action
 referred to in Clause 19.2 simultaneously with or at any time after the
 service of both or either of such notices.

 
	
  

 	
  

 	
  

 
	
 19.6

 	
  

 	
 Notification of Creditor Parties and
 Security Parties. The Agent shall send to each
 Lender, the Security Trustee and each Security Party a copy or the text of
 any notice which the Agent serves on the Borrower under Clause 19.2; but the
 notice shall become effective when it is served on the Borrower, and no
 failure or delay by the Agent to send a copy or the text of the notice to any
 other person shall invalidate the notice or provide the Borrower or any Security
 Party with any form of claim or defence.

 
	
  

 	
  

 	
  

 
	
 19.7

 	
  

 	
 Lender’s rights unimpaired.
 Nothing in this Clause shall be taken to impair or restrict the exercise of
 any right given to individual Lenders under a Finance Document or the general
 law; and, in particular, this Clause is without prejudice to Clause 3.1.

 
	
  

 	
  

 	
  

 
	
 19.8

 	
  

 	
 Exclusion of Creditor Party liability.
 No Creditor Party, and no receiver or manager appointed by the Security
 Trustee, shall have any liability to the Borrower or a Security Party:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 for any loss caused by an exercise of rights under, or enforcement of
 a Security Interest created by, a Finance Document or by any failure or delay
 to exercise such a right or to enforce such a Security Interest; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 as mortgagee in possession or otherwise, for any income or principal
 amount which might have been produced by or realised from any asset comprised
 in such a Security Interest or for any reduction (however caused) in the
 value of such an asset;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 except that this does not exempt a Creditor Party or a receiver or
 manager from liability for losses shown to have been directly and mainly
 caused by the dishonesty or the wilful misconduct of such Creditor Party’s
 own officers and employees or (as the case may be) such receiver’s or manager’s
 own partners or employees.

 
	
  

 	
  

 	
  

 
	
 19.9

 	
  

 	
 Relevant Persons.
 In this Clause 19 a “Relevant Person”
 means the Borrower, the Approved Manager or a Security Party.

 
	
  

 	
  

 	
  

 
	
 19.10

 	
  

 	
 Interpretation. In
 Clause 19.1(f) references to an event of default or a termination event
 include any event, howsoever described, which is similar to an event of
 default in a facility

 

49

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 agreement or a termination event in a finance lease; and in Clause
 19.1(g) “petition” includes an
 application.

 
	
  

 	
  

 	
  

 
	
 19.11

 	
  

 	
 Material Change.
 In Clause 19.1(k), “Material Change” means, in relation to
 the Borrower, GasLog Carriers, the Approved Manager and Counter-Guarantor 1,
 a change without the consent of the Majority Lenders, in the ultimate
 beneficial ownership of the shares in such company or the voting rights
 attaching to such shares which results in the person or persons disclosed to
 the Agent on or prior to the date of this Agreement as being the ultimate
 beneficial owner or owners of all such shares ultimately owning less than (i)
 51 per cent. of such shares or the voting rights attaching thereto in the
 case of each of the Borrower, GasLog Carriers and the Approved Manager and
 (ii) 85 per cent. of such shares or the voting rights attaching thereto in
 the case of Counter-Guarantor 1.

 
	
  

 	
  

 	
  

 
	
 20

 	
  

 	
 FEES AND EXPENSES

 
	
  

 	
  

 	
  

 
	
 20.1

 	
  

 	
 Up-front and commitment fees.
 The Borrower shall pay to the Agent:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 on the date of this Agreement a non-refundable up front fee of
 $348,066 (representing 0.20 per cent. of the Total Commitments) and;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 a commitment fee for the account of the Lenders at the rate of 0.20
 per cent. of the undrawn amount of the Loan payable from (and including) 11
 March 2008 up to and including the earlier of (i) the final Drawdown Date and
 the last day of the Availability Period, such fee to be payable quarterly in
 arrears and on the earlier of the dates referred to in (i) and (ii) above,
 for distribution among the Lenders in the proportions agreed by the Agent and
 the Lenders.

 
	
  

 	
  

 	
  

 
	
 20.2

 	
  

 	
 Costs of negotiation, preparation etc.
 The Borrower shall pay to the Agent on its demand the amount of all expenses
 incurred by the Agent or the Security Trustee in connection with the
 negotiation, preparation, execution or registration of any Finance Document
 or any related document or with any transaction contemplated by a Finance
 Document or a related document.

 
	
  

 	
  

 	
  

 
	
 20.3

 	
  

 	
 Costs of variations, amendments,
 enforcement etc. The Borrower shall pay to the
 Agent, on the Agent’s demand, for the account of the Creditor Party concerned
 the amount of all expenses incurred by a Creditor Party in connection with:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 any amendment or supplement to a Finance Document, or any proposal
 for such an amendment to be made;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any consent or waiver by the Lenders, the Majority Lenders or the
 Creditor Party concerned under or in connection with a Finance Document, or
 any request for such a consent or waiver;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 the valuation of any security provided or offered under Clause 15 or
 any other matter relating to such security; or

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 any step taken by the Creditor Party concerned with a view to the
 protection, exercise or enforcement of any right or Security Interest created
 by a Finance Document or for any similar purpose.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 There shall be recoverable under paragraph (d) the full amount of all
 legal expenses, whether or not such as would be allowed under rules of court
 or any taxation or other procedure carried out under such rules.

 
	
  

 	
  

 	
  

 
	
 20.4

 	
  

 	
 Documentary taxes.
 The Borrower shall promptly pay any tax payable on or by reference to any
 Finance Document, and shall, on the Agent’s demand, fully indemnify each
 Creditor

 

50

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Party against any claims, expenses, liabilities and losses resulting
 from any failure or delay by the Borrower to pay such a tax.

 
	
  

 	
  

 	
  

 
	
 20.5

 	
  

 	
 Financial Services Authority fees.
 The Borrower shall pay to the Agent, on the Agent’s demand, for the account
 of the Lender concerned the amounts which the Agent from time to time
 notifies the Borrower that a Lender has notified the Agent to be necessary to
 compensate it for the cost attributable to its Contribution resulting from
 the imposition from time to time under or pursuant to the Bank of England Act
 1998 and/or by the Bank of England and/or by the Financial Services Authority
 (or other United Kingdom governmental authorities or agencies) of a
 requirement to pay fees to the Financial Services Authority calculated by
 reference to liabilities used to fund its Contribution.

 
	
  

 	
  

 	
  

 
	
 20.6

 	
  

 	
 Certification of amounts.
 A notice which is signed by 2 officers of a Creditor Party, which states that
 a specified amount, or aggregate amount, is due to that Creditor Party under
 this Clause 20 and which indicates (without necessarily specifying a detailed
 breakdown) the matters in respect of which the amount, or aggregate amount,
 is due shall be prima facie evidence that the amount, or aggregate amount, is
 due.

 
	
  

 	
  

 	
  

 
	
 21

 	
  

 	
 INDEMNITIES

 
	
  

 	
  

 	
  

 
	
 21.1

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the receipt or recovery of all or any part of the Loan or an overdue
 sum otherwise than on the last day of an Interest Period or other relevant
 period;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 any failure (for whatever reason) by the Borrower to make payment of
 any amount due under a Finance Document on the due date or, if so payable, on
 demand (after giving credit for any default interest paid by the Borrower on
 the amount concerned under Clause 7);

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 the occurrence and/or continuance of an Event of Default or a
 Potential Event of Default and/or the acceleration of repayment of the Loan under
 Clause 19;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and in respect of any tax (other than tax on its overall net income)
 for which a Creditor Party is liable in connection with any amount paid or
 payable to that Creditor Party (whether for its own account or otherwise)
 under any Finance Document.

 
	
  

 	
  

 	
  

 
	
 21.2

 	
  

 	
 Breakage costs.
 Without limiting its generality, Clause 21.1 covers any claim, expense,
 liability or loss, including a loss of a prospective profit, incurred by a
 Lender:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 in liquidating or employing deposits from third parties acquired or
 arranged to fund or maintain all or any part of its Contribution and/or any
 overdue amount (or an aggregate amount which includes its Contribution or any
 overdue amount); and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 in terminating, or otherwise in connection with, any interest and/or
 currency swap or any other transaction entered into (whether with another
 legal entity or with another office or department of the Lender concerned) to
 hedge any exposure arising under this Agreement or that part which the Lender
 concerned determines is fairly attributable to this Agreement of the amount
 of the liabilities, expenses or losses (including losses of prospective
 profits) incurred by it in terminating, or otherwise in connection with, a
 number of transactions of which this Agreement is one.

 

51

	
  

 	
  

 	
  

 
	
 21.3

 	
  

 	
 Miscellaneous indemnities.
 The Borrower shall fully indemnify each Creditor Party severally on their
 respective demands in respect of all claims, expenses, liabilities and losses
 which may be made or brought against or incurred by a Creditor Party, in any
 country, as a result of or in connection with:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 any action taken, or omitted or neglected to be taken, under or in
 connection with any Finance Document by the Agent, the Security Trustee or
 any other Creditor Party or by any receiver appointed under a Finance
 Document; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 any other Pertinent Matter;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 other than claims, expenses, liabilities and losses which are shown
 to have been directly or mainly caused by the dishonesty or wilful misconduct
 of the officers or employees of the Creditor Party concerned.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Without prejudice to its generality, this Clause 21.3 covers any
 claims, expenses, liabilities and losses which arise, or are asserted, under
 or in connection with any law relating to safety at sea, the ISM Code, the
 ISPS Code or any Environmental Law.

 
	
  

 	
  

 	
  

 
	
 21.4

 	
  

 	
 Currency indemnity.
 If any sum due from the Borrower or any Security Party to a Creditor Party
 under a Finance Document or under any order or judgment relating to a Finance
 Document has to be converted from the currency in which the Finance Document
 provided for the sum to be paid (the “Contractual
 Currency”) into another currency (the “Payment Currency”) for the purpose of:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 making or lodging any claim or proof against the Borrower or any
 Security Party, whether in its liquidation, any arrangement involving it or
 otherwise; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 obtaining an order or judgment from any court or other tribunal; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 enforcing any such order or judgment;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the Borrower shall indemnify the Creditor Party concerned against the
 loss arising when the amount of the payment actually received by that
 Creditor Party is converted at the available rate of exchange into the
 Contractual Currency.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this Clause 21.4, the “available
 rate of exchange” means the rate at which the Creditor Party
 concerned is able at the opening of business (London time) on the Business
 Day after it receives the sum concerned to purchase the Contractual Currency
 with the Payment Currency.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This Clause 21.4 creates a separate liability of the Borrower which
 is distinct from its other liabilities under the Finance Documents and which
 shall not be merged in any judgment or order relating to those other
 liabilities.

 
	
  

 	
  

 	
  

 
	
 21.5

 	
  

 	
 Certification of amounts.
 A notice which is signed by 2 officers of a Creditor Party, which states that
 a specified amount, or aggregate amount, is due to that Creditor Party under
 this Clause 21 and which indicates (without necessarily specifying a detailed
 breakdown) the matters in respect of which the amount, or aggregate amount,
 is due shall be prima facie evidence that the amount, or aggregate amount, is
 due.

 
	
  

 	
  

 	
  

 
	
 21.6

 	
  

 	
 Sums deemed due to a Lender.
 For the purposes of this Clause 21, a sum payable by the Borrower to the
 Agent or the Security Trustee for distribution to a Lender shall be treated
 as a sum due to that Lender.

 
	
  

 	
  

 	
  

 
	
 22

 	
  

 	
 NO SET-OFF OR TAX DEDUCTION

 

52

	
  

 	
  

 	
  

 
	
 22.1

 	
  

 	
 No deductions. All
 amounts due from the Borrower under a Finance Document shall be paid:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 22.2

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the Borrower shall notify the Agent as soon as it becomes aware of
 the requirement;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 22.3

 	
  

 	
 Evidence of payment of taxes.
 Within 1 month after making any tax deduction, the Borrower shall deliver to
 the Agent documentary evidence satisfactory to the Agent that the tax had
 been paid to the appropriate taxation authority.

 
	
  

 	
  

 	
  

 
	
 22.4

 	
  

 	
 Exclusion of tax on overall net income.
 In this Clause 22 “tax deduction” means any deduction or
 withholding for or on account of any present or future tax except tax on a
 Creditor Party’s overall net income.

 
	
  

 	
  

 	
  

 
	
 22.5

 	
  

 	
 Tax credits. A
 Creditor Party which receives for its own account a repayment or credit in
 respect of tax on account of which the Borrower has made an increased payment
 under Clause 22.2 shall pay to the Borrower a sum equal to the proportion of
 the repayment or credit which that Creditor Party allocates to the amount due
 from the Borrower in respect of which the Borrower made the increased
 payment:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the Creditor Party shall not be obliged to allocate to this
 transaction any part of a tax repayment or credit which is referable to a
 class or number of transactions;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 nothing in this Clause 22.4 shall oblige a Creditor Party to arrange
 its tax affairs in any particular manner, to claim any type of relief,
 credit, allowance or deduction instead of, or in priority to, another or to
 make any such claim within any particular time;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 nothing in this Clause 22.4 shall oblige a Creditor Party to make a
 payment which would leave it in a worse position than it would have been in
 if the Borrower had not been required to make a tax deduction from a payment;
 and

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 any allocation or determination made by a Creditor Party under or in
 connection with this Clause 22.4 shall be conclusive and binding on the
 Borrower and the other Creditor Parties.

 
	
  

 	
  

 	
  

 
	
 23

 	
  

 	
 ILLEGALITY, ETC

 
	
  

 	
  

 	
  

 
	
 23.1

 	
  

 	
 Illegality. This
 Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent
 that it has become, or will with effect from a specified date, become:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 

53

	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 contrary to, or inconsistent with, any regulation,

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
 23.2

 	
  

 	
 Notification of illegality.
 The Agent shall promptly notify the Borrower, the Security Parties, the
 Security Trustee and the other Lenders of the notice under Clause 23.1 which
 the Agent receives from the Notifying Lender.

 
	
  

 	
  

 	
  

 
	
 23.3

 	
  

 	
 Prepayment; termination of Commitment.
 On the Agent notifying the Borrower under Clause 23.2, the Notifying Lender’s
 Commitment shall terminate; and thereupon or, if later, on the date specified
 in the Notifying Lender’s notice under Clause 23.1 as the date on which the
 notified event would become effective the Borrower shall prepay the Notifying
 Lender’s Contribution in accordance with Clause 8.

 
	
  

 	
  

 	
  

 
	
 23.4

 	
  

 	
 Mitigation. If
 circumstances arise which would result in a notification under Clause 23.1
 then, without in any way limiting the rights of the Notifying Lender under
 Clause 23.3, the Notifying Lender shall use reasonable endeavours to transfer
 its obligations, liabilities and rights under this Agreement and the Finance
 Documents to another office or financial institution not affected by the
 circumstances but the Notifying Lender shall not be under any obligation to
 take any such action if, in its opinion, to do would or might:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 24

 	
  

 	
 INCREASED COSTS

 
	
  

 	
  

 	
  

 
	
 24.1

 	
  

 	
 Increased costs.
 This Clause 24 applies if a Lender (the “Notifying Lender”) notifies the Agent that
 the Notifying Lender considers that as a result of:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the introduction or alteration after the date of this Agreement of a
 law or an alteration after the date of this Agreement in the manner in which
 a law is interpreted or applied (disregarding any effect which relates to the
 application to payments under this Agreement of a tax on the Lender’s overall
 net income); or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 complying with any regulation (including any which relates to capital
 adequacy or liquidity controls or which affects the manner in which the
 Notifying Lender allocates capital resources to its obligations under this
 Agreement) which is introduced, or altered, or the interpretation or
 application of which is altered, after the date of this Agreement,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the Notifying Lender (or a parent company of it) has incurred or will
 incur an “increased cost”.

 
	
  

 	
  

 	
  

 
	
 24.2

 	
  

 	
 Meaning of “increased cost”. In this Clause 24, “increased cost” means, in relation to a
 Notifying Lender:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 an additional or increased cost incurred as a result of, or in
 connection with, the Notifying Lender having entered into, or being a party
 to, this Agreement or a Transfer Certificate, of funding or maintaining its
 Commitment or Contribution or performing its obligations under this
 Agreement, or of having outstanding all or any part of its Contribution or
 other unpaid sums;

 

54

	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 a reduction in the amount of any payment to the Notifying Lender
 under this Agreement or in the effective return which such a payment
 represents to the Notifying Lender or on its capital;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 an additional or increased cost of funding all or maintaining all or
 any of the advances comprised in a class of advances formed by or including
 the Notifying Lender’s Contribution or (as the case may require) the proportion
 of that cost attributable to the Contribution; or

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 a liability to make a payment, or a return foregone, which is
 calculated by reference to any amounts received or receivable by the
 Notifying Lender under this Agreement,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 but not an item attributable to a change in the rate of tax on the
 overall net income of the Notifying Lender (or a parent company of it) or an
 item covered by the indemnity for tax in Clause 21.1 or by Clause 22 or an
 item arising directly out of the implementation or application of or
 compliance with the “International Convergence of Capital Measurement and
 Capital Standards, a Revised Framework” published by the Basel Committee on
 Banking Supervision in June 2004, in the form existing on the date of this
 Agreement (“Basel II”) or any
 other law or regulation which implements Basel II (whether such
 implementation, application or compliance is by a government, regulator,
 Creditor Party or any of its affiliates).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For the purposes of this Clause 24.2 the Notifying Lender may in good
 faith allocate or spread costs and/or losses among its assets and liabilities
 (or any class of its assets and liabilities) on such basis as it considers
 appropriate.

 
	
  

 	
  

 	
  

 
	
 24.3

 	
  

 	
 Notification to Borrower of claim for
 increased costs. The Agent shall promptly notify the
 Borrower and the Security Parties of the notice which the Agent received from
 the Notifying Lender under Clause 24.1.

 
	
  

 	
  

 	
  

 
	
 24.4

 	
  

 	
 Payment of increased costs.
 The Borrower shall pay to the Agent, on the Agent’s demand, for the account
 of the Notifying Lender the amounts which the Agent from time to time
 notifies the Borrower that the Notifying Lender has specified to be necessary
 to compensate the Notifying Lender for the increased cost.

 
	
  

 	
  

 	
  

 
	
 24.5

 	
  

 	
 Notice of prepayment.
 If the Borrower is not willing to continue to compensate the Notifying Lender
 for the increased cost under Clause 24.4, the Borrower may give the Agent not
 less than 14 days’ notice of its intention to prepay the Notifying Lender’s
 Contribution at the end of an Interest Period.

 
	
  

 	
  

 	
  

 
	
 24.6

 	
  

 	
 Prepayment; termination of Commitment.
 A notice under Clause 24.5 shall be irrevocable; the Agent shall promptly
 notify the Notifying Lender of the Borrower’s notice of intended prepayment;
 and:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 on the date on which the Agent serves that notice, the Commitment of
 the Notifying Lender shall be cancelled; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 on the date specified in its notice of intended prepayment, the
 Borrower shall prepay (without premium or penalty) the Notifying Lender’s
 Contribution, together with accrued interest thereon at the applicable rate
 plus the Margin.

 
	
  

 	
  

 	
  

 
	
 24.7

 	
  

 	
 Application of prepayment.
 Clause 8 shall apply in relation to the prepayment.

 
	
  

 	
  

 	
  

 
	
 25

 	
  

 	
 SET-OFF

 
	
  

 	
  

 	
  

 
	
 25.1

 	
  

 	
 Application of credit balances.
 Each Creditor Party may without prior notice:

 

55

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 apply any balance (whether or not then due) which at any time stands
 to the credit of any account in the name of the Borrower at any office in any
 country of that Creditor Party in or towards satisfaction of any sum then due
 from the Borrower to that Creditor Party under any of the Finance Documents;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 for that purpose:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 break, or alter the maturity of, all or any part of a deposit of the
 Borrower;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 convert or translate all or any part of a deposit or other credit
 balance into Dollars;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 enter into any other transaction or make any entry with regard to the
 credit balance which the Creditor Party concerned considers appropriate.

 
	
  

 	
  

 	
  

 	
  

 
	
 25.2

 	
  

 	
 Existing rights unaffected.
 No Creditor Party shall be obliged to exercise any of its rights under Clause
 25.1; and those rights shall be without prejudice and in addition to any
 right of set-off, combination of accounts, charge, lien or other right or
 remedy to which a Creditor Party is entitled (whether under the general law
 or any document).

 
	
  

 	
  

 	
  

 	
  

 
	
 25.3

 	
  

 	
 Sums deemed due to a Lender.
 For the purposes of this Clause 25, a sum payable by the Borrower to the
 Agent or the Security Trustee for distribution to, or for the account of, a
 Lender shall be treated as a sum due to that Lender; and each Lender’s
 proportion of a sum so payable for distribution to, or for the account of,
 the Lenders shall be treated as a sum due to such Lender.

 
	
  

 	
  

 	
  

 
	
 25.4

 	
  

 	
 No Security Interest.
 This Clause 25 gives the Creditor Parties a contractual right of set-off only
 and does not create any equitable charge or other Security Interest over any
 credit balance of the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
 26

 	
  

 	
 TRANSFERS AND CHANGES IN LENDING OFFICES

 
	
  

 	
  

 	
  

 
	
 26.1

 	
  

 	
 Transfer by Borrower.
 The Borrower may not, without the consent of the Agent, given on the
 instructions of all the Lenders transfer any of its rights, liabilities or
 obligations under any Finance Document.

 
	
  

 	
  

 	
  

 
	
 26.2

 	
  

 	
 Transfer by a Lender.
 Subject to Clause 26.4, a Lender (the “Transferor Lender”) may at any time, having previously consulted
 with the Borrower, cause:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 its rights in respect of all or part of its Contribution; or 

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 its obligations in respect of all or part of its Commitment; or 

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 a combination of (a) and (b),

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 to be (in the case of its rights) transferred to, or (in the case of
 its obligations) assumed by, another first class bank or financial
 institution which has experience in ship financing or a trust, fund or other
 entity which is regularly engaged in or established for the purpose of
 making, purchasing or investing in loans, securities or other financial
 assets (a “Transferee Lender”) by delivering to the
 Agent a completed certificate in the form set out in Schedule 4 with any
 modifications approved or required by the Agent (a “Transfer Certificate”)
 executed by the Transferor Lender and the Transferee Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Provided that at all times the aggregate of the
 Commitment of Danish Ship Finance A/S (Danmarks Skibskredit A/S) and its
 Contribution shall not be less than 50 per cent. of the Total Commitments.

 

56

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 However any rights and obligations of the Transferor Lender in its
 capacity as Agent or Security Trustee will have to be dealt with separately
 in accordance with the Agency and Trust Agreement.

 
	
  

 	
  

 	
  

 
	
 26.3

 	
  

 	
 Transfer Certificate, delivery and
 notification. As soon as reasonably practicable
 after a Transfer Certificate is delivered to the Agent, it shall (unless it
 has reason to believe that the Transfer Certificate may be defective):

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 sign the Transfer Certificate on behalf of itself, the Borrower, the
 Security Parties, the Security Trustee and each of the other Lenders;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 on behalf of the Transferee Lender, send to the Borrower and each
 Security Party letters or faxes notifying them of the Transfer Certificate
 and attaching a copy of it; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 send to the Transferee Lender copies of the letters or faxes sent
 under paragraph (b) above,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 but the Agent shall only be obliged to execute a Transfer Certificate
 delivered to it by the Transferor Lender and the Transferee Lender once it is
 satisfied it has complied with all necessary “know your customer” or other
 similar checks under all applicable laws and regulations in relation to the
 transfer to that Transferee Lender.

 
	
  

 	
  

 	
  

 
	
 26.4

 	
  

 	
 Effective Date of Transfer Certificate.
 A Transfer Certificate becomes effective on the date, if any, specified in
 the Transfer Certificate as its effective date, Provided that it is signed by the Agent under Clause 26.3 on
 or before that date.

 
	
  

 	
  

 	
  

 
	
 26.5

 	
  

 	
 No transfer without Transfer Certificate.
 No assignment or transfer of any right or obligation of a Lender under any
 Finance Document is binding on, or effective in relation to, the Borrower,
 any Security Party, the Agent or the Security Trustee unless it is effected,
 evidenced or perfected by a Transfer Certificate.

 
	
  

 	
  

 	
  

 
	
 26.6

 	
  

 	
 Lender re-organisation; waiver of Transfer
 Certificate. However, if a Lender enters into any
 merger, de-merger or other reorganisation as a result of which all its rights
 or obligations vest in a successor, the Agent may, if it sees fit, by notice
 to the successor and the Borrower and the Security Trustee waive the need for
 the execution and delivery of a Transfer Certificate; and, upon service of
 the Agent’s notice, the successor shall become a Lender with the same
 Commitment and Contribution as were held by the predecessor Lender.

 
	
  

 	
  

 	
  

 
	
 26.7

 	
  

 	
 Effect of Transfer Certificate.
 A Transfer Certificate takes effect in accordance with English law as
 follows:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 to the extent specified in the Transfer Certificate, all rights and
 interests (present, future or contingent) which the Transferor Lender has
 under or by virtue of the Finance Documents are assigned to the Transferee
 Lender absolutely, free of any defects in the Transferor Lender’s title and
 of any rights or equities which the Borrower or any Security Party had
 against the Transferor Lender;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the Transferor Lender’s Commitment is discharged to the extent
 specified in the Transfer Certificate;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 the Transferee Lender becomes a Lender with the Contribution
 previously held by the Transferor Lender and a Commitment of an amount
 specified in the Transfer Certificate;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 the Transferee Lender becomes bound by all the provisions of the
 Finance Documents which are applicable to the Lenders generally, including
 those about pro-rata sharing and the exclusion of liability on the part of,
 and the indemnification of, the Agent and the Security Trustee and, to the
 extent that the Transferee Lender becomes bound by those

 

57

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 provisions (other than those relating to exclusion of liability), the
 Transferor Lender ceases to be bound by them;

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 any part of the Loan which the Transferee Lender advances after the
 Transfer Certificate’s effective date ranks in point of priority and security
 in the same way as it would have ranked had it been advanced by the
 transferor, assuming that any defects in the transferor’s title and any
 rights or equities of the Borrower or any Security Party against the Transferor
 Lender had not existed;

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 the Transferee Lender becomes entitled to all the rights under the
 Finance Documents which are applicable to the Lenders generally, including
 but not limited to those relating to the Majority Lenders and those under
 Clause 5.5 and Clause 19, and to the extent that the Transferee Lender
 becomes entitled to such rights, the Transferor Lender ceases to be entitled
 to them; and

 
	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 in respect of any breach of a warranty, undertaking, condition or
 other provision of a Finance Document or any misrepresentation made in or in
 connection with a Finance Document, the Transferee Lender shall be entitled
 to recover damages by reference to the loss incurred by it as a result of the
 breach or misrepresentation, irrespective of whether the original Lender
 would have incurred a loss of that kind or amount.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The rights and equities of the Borrower or any Security Party
 referred to above include, but are not limited to, any right of set off and
 any other kind of cross-claim.

 
	
  

 	
  

 	
  

 
	
 26.8

 	
  

 	
 Maintenance of register of Lenders.
 During the Security Period the Agent shall maintain a register in which it
 shall record the name, Commitment, Contribution and administrative details
 (including the lending office) from time to time of each Lender holding a
 Transfer Certificate and the effective date (in accordance with Clause 26.4)
 of the Transfer Certificate; and the Agent shall make the register available
 for inspection by any Lender, the Security Trustee and the Borrower during
 normal banking hours, subject to receiving at least 3 Business Days’ prior
 notice.

 
	
  

 	
  

 	
  

 
	
 26.9

 	
  

 	
 Reliance on register of Lenders.
 The entries on that register shall, in the absence of manifest error, be
 conclusive in determining the identities of the Lenders and the amounts of
 their Commitments and Contributions and the effective dates of Transfer
 Certificates and may be relied upon by the Agent and the other parties to the
 Finance Documents for all purposes relating to the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 26.10

 	
  

 	
 Authorisation of Agent to sign Transfer
 Certificates. The Borrower, the Security Trustee and
 each Lender irrevocably authorise the Agent to sign Transfer Certificates on
 its behalf.

 
	
  

 	
  

 	
  

 
	
 26.11

 	
  

 	
 Registration fee.
 In respect of any Transfer Certificate, the Agent shall be entitled to
 recover a registration fee of $5,000 from the Transferor Lender or (at the
 Agent’s option) the Transferee Lender.

 
	
  

 	
  

 	
  

 
	
 26.12

 	
  

 	
 Sub-participation; subrogation assignment.
 A Lender may sub-participate all or any part of its rights and/or obligations
 under or in connection with the Finance Documents without the consent of, or
 any notice to, the Borrower, any Security Party, the Agent or the Security
 Trustee; and the Lenders may assign, in any manner and terms agreed by the
 Majority Lenders, the Agent and the Security Trustee, all or any part of
 those rights to an insurer or surety who has become subrogated to them.

 
	
  

 	
  

 	
  

 
	
 26.13

 	
  

 	
 Disclosure of information.
 A Lender may disclose to a potential Transferee Lender or sub-participant any
 information which the Lender has received in relation to the Borrower, any
 Security Party or their affairs under or in connection with any Finance
 Document, unless the information is clearly of a confidential nature.

 

58

	
  

 	
  

 	
  

 
	
 26.14

 	
  

 	
 Change of lending office.
 A Lender may change its lending office by giving notice to the Agent and the
 change shall become effective on the later of:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the date on which the Agent receives the notice; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 the date, if any, specified in the notice as the date on which the
 change will come into effect.

 
	
  

 	
  

 	
  

 
	
 26.15

 	
  

 	
 Notification. On
 receiving such a notice, the Agent shall notify the Borrower and the Security
 Trustee; and, until the Agent receives such a notice, it shall be entitled to
 assume that a Lender is acting through the lending office of which the Agent
 last had notice.

 
	
  

 	
  

 	
  

 
	
 27

 	
  

 	
 VARIATIONS AND WAIVERS

 
	
  

 	
  

 	
  

 
	
 27.1

 	
  

 	
 Variations, waivers etc. by Majority
 Lenders. Subject to Clause 27.2, a document shall be
 effective to vary, waive, suspend or limit any provision of a Finance
 Document, or any Creditor Party’s rights or remedies under such a provision
 or the general law, only if the document is signed, or specifically agreed to
 by fax, by the Borrower, by the Agent on behalf of the Majority Lenders, by
 the Agent and the Security Trustee in their own rights, and, if the document
 relates to a Finance Document to which a Security Party is party, by that
 Security Party.

 
	
  

 	
  

 	
  

 
	
 27.2

 	
  

 	
 Variations, waivers etc. requiring
 agreement of all Lenders. However, as regards the
 following, Clause 27.1 applies as if the words “by the Agent on behalf of the
 Majority Lenders” were replaced by the words “by or on behalf of every
 Lender”:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 a change in the Margin or in the definitions of LIBOR or Fixed
 Interest Rate;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 a change to the date for, the amount of, any payment of principal,
 interest, fees, or other sum payable under this Agreement;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 a change to any Lender’s Commitment;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 an extension of Availability Period;

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  

 	
 a change to the definition of “Majority Lenders” or “Finance
 Documents”; 

 
	
  

 	
  

 	
  

 
	
 (f)

 	
  

 	
 a change to the preamble or to Clause 2, 3, 4, 5.1, 17, 19 or 30; 

 
	
  

 	
  

 	
  

 
	
 (g)

 	
  

 	
 a change to this Clause 27;

 
	
  

 	
  

 	
  

 
	
 (h)

 	
  

 	
 any release of, or material variation to, a Security Interest,
 guarantee, indemnity or subordination arrangement set out in a Finance
 Document Provided that for the
 avoidance of doubt, it is agreed by the Creditor Parties that the
 Counter-Guarantee executed by each Counter-Guarantor shall be released by the
 Agent (without any warranty, representation, covenant or other recourse)
 immediately following the completion of a Qualified IPO, without obtaining
 any further consent from any other Creditor Party (upon the request and cost
 of the respective Counter-Guarantor; and

 
	
  

 	
  

 	
  

 
	
 (i)

 	
  

 	
 any other change or matter as regards which this Agreement or another
 Finance Document expressly provides that each Lender’s consent is required.

 
	
  

 	
  

 	
  

 
	
 27.3

 	
  

 	
 Exclusion of other or implied variations.
 Except for a document which satisfies the requirements of Clauses 27.1 and
 27.2, no document, and no act, course of conduct, failure or neglect to act,
 delay or acquiescence on the part of the Creditor Parties or any of them (or
 any person acting on behalf of any of them) shall result in the Creditor
 Parties or any of them (or any person acting on behalf of any of them) being
 taken to have varied, waived, suspended or limited, or being precluded
 (permanently or temporarily) from enforcing, relying on or exercising:

 

59

	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 a provision of this Agreement or another Finance Document; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 an Event of Default; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 a breach by the Borrower or a Security Party of an obligation under a
 Finance Document or the general law; or

 
	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 any right or remedy conferred by any Finance Document or by the
 general law;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and there shall not be implied into any Finance Document any term or
 condition requiring any such provision to be enforced, or such right or
 remedy to be exercised, within a certain or reasonable time.

 
	
  

 	
  

 	
  

 
	
 28

 	
  

 	
 NOTICES

 
	
  

 	
  

 	
  

 
	
 28.1

 	
  

 	
 General. Unless
 otherwise specifically provided, any notice under or in connection with any
 Finance Document shall be given by letter or fax; and references in the
 Finance Documents to written notices, notices in writing and notices signed
 by particular persons shall be construed accordingly.

 
	
  

 	
  

 	
  

 
	
 28.2

 	
  

 	
 Addresses for communications.
 A notice shall be sent:

 

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 to the
 Borrower:

 	
 c/o GasLog
 Monaco SAM

 
	
  

 	
  

 	
  

 	
 Gildo Pastor
 Center

 
	
  

 	
  

 	
  

 	
 7 rue du
 Gabian

 
	
  

 	
  

 	
  

 	
 MC98000
 Monte Carlo

 
	
  

 	
  

 	
  

 	
 Monaco

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 For the
 attention of Mr. Henrik Bjerregaard

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Tel No: +377
 97975119

 
	
  

 	
  

 	
  

 	
 Fax No: +377
 97975124

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 to a Lender:

 	
 At the
 address below its name in Schedule 1 or (as the case may require) in the
 relevant Transfer Certificate.

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 to the
 Agent:

 	
 Sankt Annae
 Plads 3

 
	
  

 	
  

 	
  

 	
 DK-1250
 Copenhagen K

 
	
  

 	
  

 	
  

 	
 Denmark

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Fax No:
 +(45) 33 33 9666

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 to the
 Security Trustee: Sankt Annae Plads 3

 
	
  

 	
  

 	
  

 	
 DK-1250
 Copenhagen K

 
	
  

 	
  

 	
  

 	
 Denmark

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Fax No:
 +(45) 33 33 9666

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or to such other address as the relevant party may notify the Agent
 or, if the relevant party is the Agent or the Security Trustee, the Borrower,
 the Lenders and the Security Parties.

 
	
  

 	
  

 	
  

 
	
 28.3

 	
  

 	
 Effective date of notices.
 Subject to Clauses 28.4 and 28.5:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 a notice which is delivered personally or posted shall be deemed to
 be served, and shall take effect, at the time when it is delivered;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 a notice which is sent by fax shall be deemed to be served, and shall
 take effect, 2 hours after its transmission is completed.

 

60

	
  

 	
  

 	
  

 
	
 28.4

 	
  

 	
 Service outside business hours.
 However, if under Clause 28.3 a notice would be deemed to be served:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 on a day which is not a business day in the place of receipt; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 on such a business day, but after 5 p.m. local time;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the notice shall (subject to Clause 28.5) be deemed to be served, and
 shall take effect, at 9 a.m. on the next day which is such a business day.

 
	
  

 	
  

 	
  

 
	
 28.5

 	
  

 	
 Illegible notices.
 Clauses 28.3 and 28.4 do not apply if the recipient of a notice notifies the
 sender within 1 hour after the time at which the notice would otherwise be
 deemed to be served that the notice has been received in a form which is
 illegible in a material respect.

 
	
  

 	
  

 	
  

 
	
 28.6

 	
  

 	
 Valid notices. A
 notice under or in connection with a Finance Document shall not be invalid by
 reason that its contents or the manner of serving it do not comply with the
 requirements of this Agreement or, where appropriate, any other Finance
 Document under which it is served if:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 the failure to serve it in accordance with the requirements of this
 Agreement or other Finance Document, as the case may be, has not caused any
 party to suffer any significant loss or prejudice; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 in the case of incorrect and/or incomplete contents, it should have
 been reasonably clear to the party on which the notice was served what the
 correct or missing particulars should have been.

 
	
  

 	
  

 	
  

 
	
 28.7

 	
  

 	
 Electronic communication.
 Any communication to be made between the Agent and a Lender under or in
 connection with the Finance Documents may be made by electronic mail or other
 electronic means, if the Agent and the relevant Lender:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 notify each other of any change to their respective addresses or any
 other such information supplied to them.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any electronic communication made between the Agent and a Lender will
 be effective only when actually received in readable form and, in the case of
 any electronic communication made by a Lender to the Agent, only if it is
 addressed in such a manner as the Agent shall specify for this purpose.

 
	
  

 	
  

 	
  

 
	
 28.8

 	
  

 	
 English language.
 Any notice under or in connection with a Finance Document shall be in
 English.

 
	
  

 	
  

 	
  

 
	
 28.9

 	
  

 	
 Meaning of “notice”.
 In this Clause 28, “notice”
 includes any demand, consent, authorisation, approval, instruction, waiver or
 other communication.

 
	
  

 	
  

 	
  

 
	
 29

 	
  

 	
 SUPPLEMENTAL

 
	
  

 	
  

 	
  

 
	
 29.1

 	
  

 	
 Rights cumulative, non-exclusive.
 The rights and remedies which the Finance Documents give to each Creditor
 Party are:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 cumulative;

 

61

	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 may be exercised as often as appears expedient; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 shall not, unless a Finance Document explicitly and specifically
 states so, be taken to exclude or limit any right or remedy conferred by any
 law.

 
	
  

 	
  

 	
  

 
	
 29.2

 	
  

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

 
	
  

 	
  

 	
  

 
	
 29.3

 	
  

 	
 Counterparts. A
 Finance Document may be executed in any number of counterparts.

 
	
  

 	
  

 	
  

 
	
 29.4

 	
  

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

 
	
  

 	
  

 	
  

 
	
 30

 	
  

 	
 LAW AND JURISDICTION

 
	
  

 	
  

 	
  

 
	
 30.1

 	
  

 	
 English law. This
 Agreement and any non-contractual obligations arising out of or in connection
 with it, shall be governed by, and construed in accordance with, English law.

 
	
  

 	
  

 	
  

 
	
 30.2

 	
  

 	
 Exclusive English jurisdiction.
 Subject to Clause 30.3, the courts of England shall have exclusive
 jurisdiction to settle any Dispute.

 
	
  

 	
  

 	
  

 
	
 30.3

 	
  

 	
 Choice of forum for the exclusive benefit
 of the Creditor Parties. Clause 30.2 is for the
 exclusive benefit of the Creditor Parties, each of which reserves the right:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
  

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

 
	
  

 	
  

 	
  

 
	
 (b)

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
 30.4

 	
  

 	
 Process agent. The
 Borrower irrevocably appoints Unisea Maritime Ltd. at its registered office
 for the time being, presently at 14 Headfort Place, London SW1A 7DH, England
 to act as its agent to receive and accept on its behalf any process or other
 document relating to any proceedings in the English courts which are
 connected with a Dispute.

 
	
  

 	
  

 	
  

 
	
 30.5

 	
  

 	
 Creditor Party rights unaffected.
 Nothing in this Clause 30 shall exclude or limit any right which any Creditor
 Party may have (whether under the law of any country, an international
 convention or otherwise) with regard to the bringing of proceedings, the
 service of process, the recognition or enforcement of a judgment or any
 similar or related matter in any jurisdiction.

 
	
  

 	
  

 	
  

 
	
 30.6

 	
  

 	
 Meaning of “proceedings”.
 In this Clause 30, “proceedings” means proceedings of any
 kind, including an application for a provisional or protective measure and a “Dispute” means any dispute arising out
 of or in connection with this Agreement (including a dispute relating to the
 existence, validity or termination of this Agreement) or any non-contractual
 obligation arising out of or in connection with this Agreement.

 
	
  

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

 

62

SCHEDULE 1

LENDERS AND COMMITMENTS

	
  

 	
  

 	
  

 
	
 Lender

 	
 Lending Office

 	
 Commitment

 (US Dollars)

 
	
  

 	
  

 	
  

 
	
 Danish Ship Finance A/S

 (Danmarks Skibskredit A/S)

 	
 Sankt Annae Plads 3

 DK-1250 Copenhagen K

 Denmark

 	
 174,033,000

 

63

SCHEDULE
2

DRAWDOWN
NOTICE

	
  

 	
  

 
	
 To:

 	
 Danish Ship Finance A/S
 (Danmarks Skibskredit A/S)

 Sankt Annae Plads 3

 DK-1250 Copenhagen K

 Denmark

 

	
  

 	
  

 	
  

 
	
 Attention:
[l]

 	
 [Loans

 	
 Administration] 

 

DRAWDOWN
NOTICE

	
  

 	
  

 
	
 1

 	
 We
refer to the loan agreement (the “Loan Agreement”) dated [l] March 2008 and
made between ourselves, as Borrower, the Lenders referred to therein, and
yourselves as Agent and as Security Trustee in connection with a facility of
up to US$174,033,000. Terms defined in the Loan Agreement have their defined
meanings when used in this Drawdown Notice. 

 
	
  

 	
  

 
	
 2

 	
 We
 request to borrow the [first/second/third] Advance as follows:

 
	
  

 	
  

 
	
 (a)

 	
 Amount:
 US$[l];

 
	
  

 	
  

 
	
 (b)

 	
 Drawdown
 Date: [l];

 
	
  

 	
  

 
	
 (c)

 	
 Duration
 of the first Interest Period shall be [l] months;

 
	
  

 	
  

 
	
 (d)

 	
 Payment
 instructions: account of [l] and numbered [l] with [l] of [l].

 
	
  

 	
  

 
	
 3

 	
 We
 represent and warrant that:

 
	
  

 	
  

 
	
 (a)

 	
 the
 representations and warranties in Clause 10 of the Loan Agreement would
 remain true and not misleading if repeated on the date of this notice with
 reference to the circumstances now existing;

 
	
  

 	
  

 
	
 (b)

 	
 no
 Event of Default or Potential Event of Default has occurred or will result
 from the borrowing of the Loan.

 
	
  

 	
  

 
	
 4

 	
 This
 notice cannot be revoked without the prior consent of the Majority Lenders.

 
	
  

 	
  

 
	
 5

 	
 [We
 authorise you to deduct the up-front fee and any accrued commitment fee
 referred to in Clause 20 from the amount of the Advance.]

 

	
  

 	
  

 	
  

 
	
  

 	
 [Name
 of Signatory]

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Director

 for and on behalf of

 GAS-ONE LTD.

 	
  

 

64

SCHEDULE
3

CONDITION
PRECEDENT DOCUMENTS

PART
A

	
  

 	
  

 
	
 The following are the
 documents referred to in Clause 9.1 (a).

 
	
  

 	
  

 
	
 1

 	
 A duly executed
 original of the Loan Agreement and the Guarantee.

 
	
  

 	
  

 
	
 2

 	
 Copies of the
 certificate of incorporation and constitutional documents of the Borrower and
 each Security Party.

 
	
  

 	
  

 
	
 3

 	
 Copies of resolutions
 of the shareholders (if required under the constitutional documents and
 applicable laws) and directors of the Borrower and each Security Party
 authorising the execution of each of the Finance Documents to which the
 Borrower or that Security Party is a party and, in the case of the Borrower,
 authorising named officers to give the Drawdown Notices and other notices
 under this Agreement and ratifying the execution of the Shipbuilding Contract
 and the Transfer Agreement.

 
	
  

 	
  

 
	
 4

 	
 The original of any
 power of attorney under which any Finance Document is executed on behalf of
 the Borrower or (if required) a Security Party.

 
	
  

 	
  

 
	
 5

 	
 Copies of all consents
 which the Borrower or any Security Party requires to enter into, or make any
 payment under, any Finance Document, the Shipbuilding Contract or the
 Transfer Agreement.

 
	
  

 	
  

 
	
 6

 	
 Copies of the
 Shipbuilding Contract and the Transfer Agreement and of all documents signed
 or issued by the Borrower or the Builder or the Original Buyer (or all of
 them) under or in connection with it, each to be in a form acceptable to the
 Agent and its lawyers.

 
	
  

 	
  

 
	
 7

 	
 Such documents as any
 of the Lenders may require for its “know your customer” and other customary
 money laundering checks.

 
	
  

 	
  

 
	
 8

 	
 Documentary evidence
 that the agent for service of process named in Clause 30 has accepted its
 appointment.

 
	
  

 	
  

 
	
 9

 	
 Favourable legal
 opinions from lawyers appointed by the Agent on such matters concerning the
 laws of Bermuda, New York, Korea and such other relevant jurisdictions as the
 Agent may require.

 
	
  

 	
  

 
	
 10

 	
 If the Agent so
 requires, in respect of any of the documents referred to above, a certified
 English translation prepared by a translator approved by the Agent.

 
	
  

 	
  

 
	
 PART B

 
	
  

 	
  

 
	
 The following are the
 documents referred to in Clause 9.1(c).

 
	
  

 	
  

 
	
 1

 	
 A written notice from
 the Original Buyer showing all sums due and payable to the Original Buyer
 under the Transfer Agreement.

 
	
  

 	
  

 
	
 2

 	
 (If applicable)
 evidence that any balance (in addition to the first Advance) then due to the
 Original Buyer has been or will immediately on drawdown of that Advance be
 paid to the Original Buyer.

 
	
  

 	
  

 
	
 3

 	
 A duly executed
 original of the Predelivery Security Assignment (and of each document
 required to be delivered pursuant thereto).

 

65

	
  

 	
  

 
	
 4

 	
 Copies of the Novation
 Agreement and of all documents signed or issued by the Borrower or the
 Builder or the Original Buyer (or all of them) under or in connection with it
 to be in a form acceptable to the Agent and its lawyers.

 
	
  

 	
  

 
	
 5

 	
 The original assignment
 of the Refund Guarantee, the original Refund Guarantee and the original
 Refund Guarantor’s acknowledgement to the assignment of the Refund Guarantee
 (each to be in a form acceptable to the Agent and its lawyers) together with
 evidence of the authority of the person executing the same for and on behalf
 of the Refund Guarantor.

 
	
  

 	
  

 
	
 6

 	
 If the Agent so
 requires, in respect of any of the documents referred to above, a certified
 English translation prepared by a translator approved by the Agent.

 

66

PART C

	
  

 	
  

 
	
 The
 following are the documents referred to in Clause 9.1(d).

 
	
  

 	
  

 
	
 1

 	
 Documentary
 evidence that the launching of the Ship has been completed in accordance with
 the Shipbuilding Contract.

 
	
  

 	
  

 
	
 2

 	
 A
 duly issued invoice from the Builder showing the fourth instalment due and
 payable to the Builder under the Shipbuilding Contract.

 
	
  

 	
  

 
	
 3

 	
 stage
 certificate issued by the relevant classification society in a form
 acceptable to the Lender, confirming that the launching of the Ship has been
 completed to the satisfaction of such classification society.

 
	
  

 	
  

 
	
 4

 	
 Evidence
 that any balance (in addition to the part to be paid by the second Advance)
 then due to the Builder under the Shipbuilding Contract has been or will
 immediately on drawdown of that Advance be paid to the Builder.

 
	
  

 	
  

 
	
 5

 	
 A
 copy of the Approved Charter duly signed by the parties thereto.

 
	
  

 	
  

 
	
 PART D

 
	
  

 	
  

 
	
 The
 following are the documents referred to in Clause 9.1 (e).

 
	
  

 	
  

 
	
 1

 	
 A
 duly executed original of this Mortgage, General Assignment and the
 Reinsurances Assignment (and of each document to be delivered by each of
 them).

 
	
  

 	
  

 
	
 2

 	
 Documentary
 evidence that:

 
	
  

 	
  

 
	
 (a)

 	
 the
 Ship has been unconditionally delivered by the Builder to, and accepted by,
 the Borrower under the Shipbuilding Contract, and the whole of the Contract
 Price (in addition to the part to be financed by the Loan) has been duly
 paid;

 
	
  

 	
  

 
	
 (b)

 	
 the
 Ship is definitively and permanently registered in the name of the Borrower
 under the Applicable Flag State;

 
	
  

 	
  

 
	
 (c)

 	
 the
 Ship is in the absolute and unencumbered ownership of the Borrower save as
 contemplated by the Finance Documents;

 
	
  

 	
  

 
	
 (d)

 	
 the
 Ship maintains the class +A1, (E), Liquified gas carrier, ship type 2G
 (Membrane tank, Maximum pressure 25KPaG and minimum temperature - 163°C), SH,
 SH-DLA, SHCM, RES, +AMS, +ACCU, SFA (40), NIBS, +APS, +ES, PORT, POT, CRC,
 DFD and UWILD with American Bureau of Shipping free of all overdue
 recommendations and conditions of such Classification Society;

 
	
  

 	
  

 
	
 (e)

 	
 the
 Mortgage has been duly registered against the Ship as a valid first preferred
 priority ship mortgage in accordance with the laws of the applicable Approved
 Flag State; and

 
	
  

 	
  

 
	
 (f)

 	
 the
 Ship is insured in accordance with the provisions of this Agreement and all
 requirements therein in respect of insurances have been complied with.

 
	
  

 	
  

 
	
 3

 	
 Documents
 establishing that the Ship will, as from the final Drawdown Date, be managed
 by the Approved Manager on terms acceptable to the Lenders, together with:

 
	
  

 	
  

 
	
 (a)

 	
 a
 letter of undertaking executed by the Approved Manager in favour of the Agent
 in the terms required by the Agent agreeing certain matters in relation to
 the management of the Ship and subordinating the rights of the Approved
 Manager against the Ship and the Borrower to the rights of the Creditor
 Parties under the Finance Documents; and

 

67

	
  

 	
  

 
	
 (b)

 	
 copies of the Approved
 Manager’s Document of Compliance and of the Ship’s Safety Management
 Certificate (together with any other details of the applicable safely
 management system which the Agent requires) and the Ship’s ISSC.

 
	
  

 	
  

 
	
 4

 	
 Favourable legal
 opinions from lawyers appointed by the Agent on such matters concerning the
 laws of Bermuda, the applicable Approved Flag State and such other relevant
 jurisdictions as the Agent may require.

 
	
  

 	
  

 
	
 5

 	
 A favourable opinion
 from an independent insurance consultant acceptable to the Agent on such
 matters relating to the insurances for the Ship as the Agent may require.

 
	
  

 	
  

 
	
 6

 	
 If the Agent so
 requires, in respect of any of the documents referred to above, a certified
 English translation prepared by a translator approved by the Agent.

 
	
  

 	
  

 
	
 Each of the documents
 specified in paragraphs 2, 3, 5 and 6 of Part A, paragraph 4 of Part B and
 paragraph 5 of Part C and every other copy document delivered under this
 Schedule shall be certified as a true and up to date copy by a director or
 the secretary (or equivalent officer) of the Borrower.

 

68

SCHEDULE
4

TRANSFER
CERTIFICATE

The
Transferor and the Transferee accept exclusive responsibility for ensuring that
this Certificate and the transaction to which it relates comply with all legal
and regulatory requirements applicable to them respectively.

	
  

 	
  

 
	
 To:

 	
 Danish Ship Finance A/S
 (Danmarks Skibskredit A/S) for itself and for and on behalf of the Borrower,
 each Security Party, the Security Trustee and each Lender, as defined in the
 Loan Agreement referred to below.

 
	
  

 	
 [l]

 
	
 1

 	
 This Certificate
 relates to a Loan Agreement (“the “Agreement”)
 dated [l] March 2008 and made between (1) Gas-One Ltd. (the “Borrower”), (2) the banks and financial
 institutions named therein, (3) Danish Ship Finance A/S (Danmarks Skibskredit
 A/S) as Agent and (4) Danish Ship Finance A/S (Danmarks Skibskredit A/S) as
 Security Trustee for a loan facility of up to US$174,033,000.

 
	
  

 	
  

 
	
 2

 	
 In this Certificate,
 terms defined in the Agreement shall, unless the contrary intention appears,
 have the same meanings when used in this Certificate and:

 
	
  

 	
  

 
	
  

 	
 “Relevant Parties” means the Agent, the
 Borrower, each Security Party, the Security Trustee and each Lender;

 
	
  

 	
  

 
	
  

 	
 “Transferor” means [full name] of [lending
 office]; 

 
	
  

 	
  

 
	
  

 	
 “Transferee” means [full name] of [lending
 office].

 
	
  

 	
  

 
	
 3

 	
 The effective date of
 this Certificate is [l], Provided that
 this Certificate shall not come into effect unless it is signed by the Agent
 on or before that date.

 
	
  

 	
  

 
	
 4

 	
 The Transferor assigns
 to the Transferee absolutely all rights and interests (present, future or
 contingent) which the Transferor has as Lender under or by virtue of the
 Agreement and every other Finance Document in relation to [l] per cent. of
 its Contribution, which percentage represents $[l].

 
	
  

 	
  

 
	
 5

 	
 By virtue of this
 Transfer Certificate and Clause 26 of the Agreement, the Transferor is
 discharged [entirely from its Commitment which amounts to $[l] [from [l] per
 cent. of its Commitment, which percentage represents $[l]] and the Transferee
 acquires a Commitment of $[l].

 
	
  

 	
  

 
	
 6

 	
 The Transferee
 undertakes with the Transferor and each of the Relevant Parties that the
 Transferee will observe and perform all the obligations under the Finance
 Documents which Clause 26 of the Agreement provides will become binding on it
 upon this Certificate taking effect.

 
	
  

 	
  

 
	
 7

 	
 The Agent, at the
 request of the Transferee (which request is hereby made) accepts, for the
 Agent itself and for and on behalf of every other Relevant Party, this
 Certificate as a Transfer Certificate taking effect in accordance with
 Clause 26 of the Agreement.

 
	
  

 	
  

 
	
 8

 	
 The Transferor:

 
	
  

 	
  

 
	
 (a)

 	
 warrants to the
 Transferee and each Relevant Party that:

 

69

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the
 Transferor has full capacity to enter into this transaction and has taken all
 corporate action and obtained all consents which are required in connection
 with this transaction; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 this
 Certificate is valid and binding as regards the Transferor;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 warrants
 to the Transferee that the Transferor is absolutely entitled, free of
 encumbrances, to all the rights and interests covered by the assignment in
 paragraph 4; and

 
	
  

 	
  

 
	
 (c)

 	
 undertakes
 with the Transferee that the Transferor will, at its own expense, execute any
 documents which the Transferee reasonably requests for perfecting in any
 relevant jurisdiction the Transferee’s title under this Certificate or for a
 similar purpose.

 
	
  

 	
  

 
	
 9

 	
 The
 Transferee:

 
	
  

 	
  

 
	
 (a)

 	
 confirms
 that it has received a copy of the Agreement and each of the other Finance
 Documents;

 
	
  

 	
  

 
	
 (b)

 	
 agrees
 that it will have no rights of recourse on any ground against either the Transferor,
 the Agent, the Security Trustee or any Lender in the event that:

 
	
  

 	
  

 
	
  

 	
 (i)
 

 	
 any
 of the Finance Documents prove to be invalid or ineffective;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)
 

 	
 the
 Borrower or any Security Party fails to observe or perform its obligations,
 or to discharge its liabilities, under any of the Finance Documents; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)
 

 	
 it
 proves impossible to realise any asset covered by a Security Interest created
 by a Finance Document, or the proceeds of such assets are insufficient to
 discharge the liabilities of the Borrower or any Security Party under any of
 the Finance Documents;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 agrees
 that it will have no rights of recourse on any ground against the Agent, the
 Security Trustee or any Lender in the event that this Certificate proves to
 be invalid or ineffective;

 
	
  

 	
  

 
	
 (d)

 	
 warrants
 to the Transferor and each Relevant Party that:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 it
 has full capacity to enter into this transaction and has taken all corporate
 action and obtained all consents which it needs to take or obtain in
 connection with this transaction; and

 
	
  

 	
  

 
	
  

 	
 (ii)
 

 	
 this
 Certificate is valid and binding as regards the Transferee; and

 
	
  

 	
  

 
	
 (e)

 	
 confirms
 the accuracy of the administrative details set out below regarding the
 Transferee.

 
	
  

 	
  

 
	
 10

 	
 The
 Transferor and the Transferee each undertake with the Agent and the Security
 Trustee severally, on demand, fully to indemnify the Agent and/or the
 Security Trustee in respect of any claim, proceeding, liability or expense
 (including all legal expenses) which they or either of them may incur in
 connection with this Certificate or any matter arising out of it, except such
 as are shown to have been mainly and directly caused by the gross and
 culpable negligence or dishonesty of the Agent’s or the Security Trustee’s
 own officers or employees.

 
	
  

 	
  

 
	
 11

 	
 The
 Transferee shall repay to the Transferor on demand so much of any sum paid by
 the Transferor under paragraph 10 as exceeds one-half of the amount demanded
 by the Agent or the Security Trustee in respect of a claim, proceeding,
 liability or expense which was not reasonably foreseeable at the date of this
 Certificate; but nothing in this paragraph shall affect the liability of each
 of the Transferor and the Transferee to the Agent or the Security Trustee for
 the full amount demanded by it.

 

70

	
  

 	
  

 
	
 [Name of Transferor]

 	
 [Name of Transferee] 

 
	
  

 	
  

 
	
 By:

 	
 By: 

 
	
  

 	
  

 
	
 Date:

 	
 Date: 

 

Agent

Signed for itself and for and on behalf of itself

as Agent and for every other Relevant Party

[Name of Agent]

By:

Date:

71

SCHEDULE 5

LIST OF LNG SHIPBROKERS

	
  

 
	
 R.S. Platou Finans a.s

 P.O. Box 1604 Vika

 N-0119 Oslo

 Norway

 
	
  

 
	
 Fearnleys (Oslo office)

 Grev Wedels Plass 9

 P.O. Box 1158, Sentrum

 0107 Oslo

 Norway

 Tel. +47 22 93 60 00

 
	
  

 
	
 Braemar Seascope (Head Office)

 
	
 35 Cosway Street

 
	
 London NW1 5BT

 
	
 UK

 
	
 Tel. +44207 535 2650

 
	
  

 
	
 Poten & Partners (UK office)

 
	
 Viewpoint

 
	
 20 Balderton Street

 
	
 London W1K 6TL

 
	
 UK

 
	
  

 
	
 Clarkson PLC

 
	
 St Magnus House

 
	
 3 Lower Thames Street

 
	
 London EC3R 6HE

 
	
 UK

 

72

SCHEDULE 6

FORM OF COMPLIANCE CERTIFICATE

	
  

 	
  

 
	
 To:

 	
 Danish Ship Finance A/S (Danmarks Skibskredit A/S)

 Sankt Annæ Plads 3

 DK-1250

 Copenhagen K.

 Denmark

 
	
  

 	
  

 
	
 From:

 	
 GasLog Ltd. and

 Gas-One Ltd.

 

[Date]

OFFICER’S CERTIFICATE

This Certificate is rendered pursuant to:

	
  

 	
  

 	
  

 
	
 (a)

 	
 clause [11.6(d)] of the
 loan agreement dated 14 March 2008 (as amended and restated by an amending and
 restating agreement dated
                     2012
 and may be further amended and/or supplemented from time to time, the “Loan Agreement”) and made between (i)
 GAS-one Ltd. as borrower (the “Borrower”),
 (ii) certain banks and financial institutions, as lenders and (iii) Danish
 Ship Finance A/S (Danmarks Skibskredit A/S), as agent and as security
 trustee; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 clause [11.3(c)] of the
 guarantee dated [l] 2011 (as amended and/or supplemented from time to time,
 the “GasLog Guarantee”) and
 executed by GasLog Ltd. (“GasLog”),
 in favour of Danish Ship Finance A/S (Danmarks Skibskredit A/S), as Security
 Trustee.

 
	
  

 	
  

 
	
 Words and expressions
 defined in the Loan Agreement (including, without limitation, in clause
 [11.21] thereof) shall have the same meanings when used herein.

 
	
  

 	
  

 	
  

 
	
 We, the Chief Financial
 Officers of GasLog Ltd. and GAS-one Ltd., hereby certify that:

 
	
  

 
	
 1

 	
 Attached to this
 Certificate [are][is] the latest [audited consolidated accounts of GasLog and
 its subsidiaries for the financial year ending on [l]] [unaudited
 consolidated accounts of GasLog and its subsidiaries in relation to the first
 six months of the financial year ending on [l]].

 
	
  

 	
  

 
	
 2

 	
 Attached also to this
 Certificate [are][is] the latest [audited accounts of the Borrower for the
 financial year ending on [l]] [unaudited accounts of the Borrower in relation
 to the first six months of the financial year ending on [l]].

 
	
  

 	
  

 
	
 3

 	
 As at the date of this
 Certificate the financial covenants set out in clause [11.21] of the Loan
 Agreement [are] [are not] complied with, in that as at [l]:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 GasLog Group’s Working
 Capital [is][is not] less than $0;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the aggregate amount of
 GasLog Group’s Cash and GasLog Group’s Cash Equivalents is [l] and GasLog
 Group’s Total Interest Bearing Debt is [l];

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the ratio of GasLog
 Group’s Total Debt to GasLog Group’s Total Capitalisation is [l]: [l];

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 GasLog Group’s Market
 Adjusted Net Worth is [l];

 

73

	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 the ratio of GasLog
 Group’s EBITDA to GasLog Group’s Debt Service is [l] : [l]; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 the aggregate amount of
 Borrower’s Cash [and Borrower’s Cash Equivalents] is [l].

 
	
  

 	
  

 	
  

 
	
  

 	
 [or, as the case may be, specify in what respect any of the
 financial covenants are not complied with.]

 
	
  

 	
  

 
	
 4

 	
 Attached also to this
 Certificate are our calculations evidencing the statements set out in
 paragraph 3 above.

 
	
  

 	
  

 
	
 5

 	
 Attached also to this
 Certificate are/is a valuation(s) evidencing the Fair Market Value of the
 Ship as at the date of this Certificate.

 
	
  

 	
  

 
	
 6

 	
 As at [l] no Potential
 Event of Default or Event of Default has occurred and is continuing. 

 
	
  

 	
  

 
	
  

 	
 [or,
 specify/identify any Potential Event of Default or Event of Default]

 
	
  

 	
  

 
	
 7

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

 

	
  

 	
  

 
	

 

 	
  

 
	
 Chief Financial Officer

 GASLOG LTD.

 	
  

 
	
  

 	
  

 
	

 

 	
  

 
	
 Chief Financial Officer

 GAS-ONE LTD.

 	
  

 

74

EXECUTION
PAGE

	
  
 	
  
 	
  
 
	
 BORROWER
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
 SIGNED by
 	
 )
 	/s/ Henrik Bjerregaard
	
  
 	
 )
 	 
	
 for and on behalf of
 	
 )
 	 
	
 GAS-ONE LTD.
 	
 )
 	 
	
  
 	
  
 	
  
 
	
 LENDERS
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
 SIGNED by
 	
 )
 	/s/ Peter Hauskov
	
  
 	
 )
 	 
	
 for and on behalf of
 	
 )
 	 
	
 DANISH SHIP FINANCE A/S
 	
 )
 	 
	
  (DANMARKS SKIBSKREDIT A/S)
 	
  
 	
 )
 
	
  
 	
  
 	
  
 
	
 AGENT
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
 SIGNED by
 	
 )
 	
 /s/ Peter Hauskov
 
	
  
 	
 )
 	 
	
 for and on behalf of
 	
 )
 	 
	
 DANISH SHIP FINANCE A/S
 	
 )
 	 
	
  (DANMARKS SKIBSKREDIT A/S)
 	
  
 	
 )
 
	
  
 	
  
 	
  
 
	
 SECURITY TRUSTEE
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
 SIGNED by
 	
 )
 	/s/ Peter Hauskov
	
  
 	
 )
 	 
	
 for and on behalf of
 	
 )
 	 
	
 DANISH SHIP FINANCE A/S 
 	
 )
 	 
	
  (DANMARKS SKIBSKREDIT A/S)
 	
  
 	
 )
 
	
  
 	
  
 	
  
 
	
 Witness to all the
 	
 )
 	
  
 
	
 above signatures
 	
 )
 	
 /s/ Thomas Schiltmann
 
	
  
 	
  
 	
  
 
	
 Name:
 	
  
 	
  
 
	
 Address:
 	
  
 	
  
 

75Exhibit 10.2 

	
  

 	
  

 	
  

 	
  

 
	
 Private &
 Confidential

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Dated 17 November 2009 (as amended 

 and restated
 on 14 March 2012)

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 GAS-two Ltd.

 	
  

 	
  (1)

 
	
  

 	
 arranged by

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DNB BANK ASA

 	
  

 	
  

 
	
  

 	
  (formerly known as DnB NOR BANK ASA)

 	
  

 	
  (2)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 NATIONAL BANK OF GREECE S.A.

 	
  

 	
  (3)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 UBS AG

 	
  

 	
  (4)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 with

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DNB BANK ASA

 	
  

 	
  

 
	
  

 	
  (formerly known as DnB NOR BANK ASA)

 	
  

 	
  (5)

 
	
  

 	
 as Agent

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DNB BANK ASA

 	
  

 	
  

 
	
  

 	
  (formerly known as DnB NOR BANK ASA)

 	
  

 	
  (6)

 
	
  

 	
 as Security Agent

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 
	
  

 	
 FACILITY AGREEMENT

 	
  

 	
  

 
	
  

 	
 $147,500,000 Loan Facility

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	

 

Contents

	
  

 	
  

 	
  

 	
  

 
	
 Clause

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 Definitions and
 interpretation

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 2

 	
 The Facility

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 
	
 3

 	
 Purpose

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 
	
 4

 	
 Conditions of
 Utilisation

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 
	
 5

 	
 Utilisation

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
 6

 	
 Repayment

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
 Illegality,
 prepayment and cancellation

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 8

 	
 Interest

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
 Interest Periods

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 10

 	
 Changes to the
 calculation of interest

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
 Fees

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 12

 	
 Tax gross-up and
 indemnities

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 
	
 13

 	
 Increased Costs

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 14

 	
 Other indemnities

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 15

 	
 Mitigation by the
 Lenders

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 16

 	
 Costs and expenses

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 17

 	
 Representations

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 
	
 18

 	
 Information
 undertakings

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 
	
 19

 	
 General
 undertakings

 	
  

 	
 44

 
	
  

 	
  

 	
  

 	
  

 
	
 20

 	
 Construction
 period

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 
	
 21

 	
 Dealings with Ship

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 
	
 22

 	
 Condition and
 operation of Ship

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 
	
 23

 	
 Insurance

 	
  

 	
 54

 
	
  

 	
  

 	
  

 	
  

 
	
 24

 	
 Minimum security
 value

 	
  

 	
 57

 
	
  

 	
  

 	
  

 	
  

 
	
 25

 	
 Chartering
 undertakings

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 
	
 26

 	
 Bank accounts

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 
	
 27

 	
 Business
 restrictions

 	
  

 	
 63

 
	
  

 	
  

 	
  

 	
  

 
	
 28

 	
 Events of Default

 	
  

 	
 65

 

	
  

 	
  

 	
  

 	
  

 
	
 29

 	
 Changes to the
 Lenders

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 
	
 30

 	
 Changes to the
 Obligors

 	
  

 	
 73

 
	
  

 	
  

 	
  

 	
  

 
	
 31

 	
 Roles of Agent,
 Security Agent and Arranger

 	
  

 	
 74

 
	
  

 	
  

 	
  

 	
  

 
	
 32

 	
 Conduct of
 business by the Finance Parties

 	
  

 	
 85

 
	
  

 	
  

 	
  

 	
  

 
	
 33

 	
 Sharing among the
 Finance Parties

 	
  

 	
 87

 
	
  

 	
  

 	
  

 	
  

 
	
 34

 	
 Payment mechanics

 	
  

 	
 89

 
	
  

 	
  

 	
  

 	
  

 
	
 35

 	
 Set-off

 	
  

 	
 91

 
	
  

 	
  

 	
  

 	
  

 
	
 36

 	
 Notices

 	
  

 	
 91

 
	
  

 	
  

 	
  

 	
  

 
	
 37

 	
 Calculations and
 certificates

 	
  

 	
 93

 
	
  

 	
  

 	
  

 	
  

 
	
 38

 	
 Partial invalidity

 	
  

 	
 94

 
	
  

 	
  

 	
  

 	
  

 
	
 39

 	
 Remedies and
 waivers

 	
  

 	
 94

 
	
  

 	
  

 	
  

 	
  

 
	
 40

 	
 Amendments and
 grant of waivers

 	
  

 	
 94

 
	
  

 	
  

 	
  

 	
  

 
	
 41

 	
 Counterparts

 	
  

 	
 94

 
	
  

 	
  

 	
  

 	
  

 
	
 42

 	
 Governing law

 	
  

 	
 95

 
	
  

 	
  

 	
  

 	
  

 
	
 43

 	
 Enforcement

 	
  

 	
 95

 
	
  

 	
  

 	
  

 
	
 Schedule 1
 The original parties

 	
  

 	
 96

 
	
  

 	
  

 	
  

 
	
 Schedule 2
 Ship information

 	
  

 	
 99

 
	
  

 	
  

 	
  

 
	
 Schedule 3
 Conditions precedent

 	
  

 	
 100

 
	
  

 	
  

 	
  

 
	
 Schedule 4
 Utilisation Request

 	
  

 	
 106

 
	
  

 	
  

 	
  

 
	
 Schedule 5
 Selection Notice

 	
  

 	
 107

 
	
  

 	
  

 	
  

 
	
 Schedule 6
 Mandatory Cost Formula

 	
  

 	
 108

 
	
  

 	
  

 	
  

 
	
 Schedule 7 Form
 of Transfer Certificate

 	
  

 	
 111

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
               THIS
 AGREEMENT is dated 17 November 2009 (as amended and restated on 14 March 2012) and made
 between:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (1)

 	
  

 	
 GAS-two Ltd. (the Borrower);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (2)

 	
  

 	
 DNB BANK ASA (formerly known as DnB NOR
 BANK ASA), NATIONAL BANK OF GREECE S.A.
 and UBS AG as mandated lead
 arrangers (whether acting individually or together the Arrangers);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (3)

 	
  

 	
 THE FINANCIAL
 INSTITUTIONS listed in Schedule 1 as lenders (the Original Lenders);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (4)

 	
  

 	
 DNB BANK ASA (formerly known as DnB NOR
 BANK ASA) as agent of the other Finance Parties (the Agent) and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (5)

 	
  

 	
 DNB BANK ASA (formerly known as DnB NOR
 BANK ASA) as security agent for the Finance Parties (the Security Agent).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
                IT IS AGREED as follows:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 1 - INTERPRETATION

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1

 	
  

 	
 Definitions and interpretation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1.1

 	
  

 	
 Definitions

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this Agreement and (unless otherwise defined in the relevant
 Finance Document) the other Finance Documents:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account means any bank account, deposit
 or certificate of deposit opened, made or established in accordance with
 clause 26 (Bank accounts).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account Bank means, in relation to any
 Account, either the Security Agent or another bank or financial institution
 approved by the Majority Lenders at the request of the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account
 Security means, in relation to an Account, a deed or other instrument by the
 Borrower in favour of the Security Agent in an agreed form conferring a
 Security Interest over that Account.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Accounting Reference Date means 31 December 2008 or such
 other date as may be approved.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Additional
 Cost Rate has the meaning given to it in Schedule 6 (Mandatory Cost
 formulae).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Advance means each borrowing of a
 proportion of the Total Commitments by the Borrower or (as the context may
 require) the outstanding principal amount of such borrowing.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Affiliate means, in relation to any person,
 a Subsidiary of that person or a Holding Company of that person or any other
 Subsidiary of that Holding Company.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Agent includes any person who may be
 appointed as agent under this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Approved
 Exchange means NYSE, NASDAQ or any other reputable stock exchange agreed by
 GasLog and the Majority Lenders.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Auditors means one of Moore Stephens, PricewaterhouseCoopers,
 Ernst & Young, KPMG or Deloitte & Touche or another approved firm.

 

1

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Available
 Facility means, at any relevant time, such part of the Total Commitments
 (drawn and undrawn) which is available for borrowing under this Agreement at
 such time in accordance with clause 4 (Conditions of Utilisation).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Basel 2 Accord means the “International
 Convergence of Capital Measurement and Capital Standards, a Revised
 Framework” published by the Basel Committee on Banking Supervision in June
 2004 in the form existing on the date of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Basel 2 Approach means, in relation to any Lender,
 either the Standardised Approach or the relevant Internal Ratings Based
 Approach (each as defined in the Basel 2 Accord) adopted by that Lender (or
 any of its Affiliates) for the purposes of implementing or complying with the
 Basel 2 Accord.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Basel 2 Regulation means (a) any law or regulation
 implementing the Basel 2 Accord or (b) any Basel 2 Approach adopted by the
 Lender.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Break Costs means the amount (if any) by
 which:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the interest which a Lender should have received for the period from
 the date of receipt of all or any part of its participation in the Loan or
 Unpaid Sum to the last day of the current Interest Period in respect of the
 Loan or Unpaid Sum) had the principal amount or Unpaid Sum received been paid
 on the last day of that Interest Period;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 exceeds:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the amount which that Lender would be able to obtain by placing an
 amount equal to the principal amount or Unpaid Sum received by it on deposit
 with a leading bank in the Interbank Market for a period starting on the
 Business Day following receipt or recovery and ending on the last day of the
 current Interest Period

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Builder means the person specified as
 such in Schedule 2 (Ship information).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Building
 Contract means the shipbuilding contract specified in Schedule 2 (Ship
 information) between the Builder and the Borrower relating
 to the construction of the Ship and as may further be supplemented, amended
 or varied in accordance with the terms thereof.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Building Contract Documents means the Building Contract, any Refund Guarantee and any other
 guarantee or security given to any person for the Builder’s obligations under
 the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Business Day means a day (other than a
 Saturday or Sunday) on which banks are open for general business in London,
 Piraeus, Zurich, Monaco and New York.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Change of Control occurs, at any time before an IPO
 is completed:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 when the current beneficial owners of the Counter Guarantors cease to
 own legally and/or beneficially and, either directly or indirectly, at least
 70% of the issued share capital of GasLog; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 when the Counter Guarantors cease to have the right or the ability to
 control, either directly or indirectly, the affairs or composition of the
 majority of the board of directors (or equivalent) of GasLog; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 if there is a change of 15% or more in the shareholding of, or in the
 voting rights relative to, Counter Guarantor A from that described to the
 Lenders on or before the date of this Agreement,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 in any case, without the prior written consent of the Agent (acting
 on the instructions of the Lenders).

 

2

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Charged
 Property means all of the assets of the Obligors which from time to time are,
 or are expressed or intended to be, the subject of the Security Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Charter means the charter commitment
 details of which are provided in Schedule 2 (Ship information).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Charter
 Documents means the Charter, any documents supplementing it and any guarantee
 or security given by any person for the Charterer’s obligations under it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Charter
 Assignment means an assignment by the Borrower of its interest in the Charter
 Documents in favour of the Security Agent in the agreed form.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Charterer means the charterer named in
 Schedule 2 (Ship information).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Classification means the classification
 specified in Schedule 2 (Ship information) with the
 Classification Society or another classification approved by the Lenders as
 its classification, at the request of the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Classification
 Society means the classification society specified in Schedule 2 (Ship
 information) or another classification society approved by the
 Lenders as its Classification Society, at the request of the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Commitment means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in relation to an Original Lender, the amount set opposite its name
 under the heading “Commitment” in Schedule 1 (The original parties) and
 the amount of any other Commitment transferred to it under this Agreement;
 and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 in relation to any other Lender, the amount of any Commitment
 transferred to it under this Agreement,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 to the extent not cancelled, reduced or transferred by it under this
 Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Constitutional
 Documents means, in respect of an Obligor, such Obligor’s memorandum and
 articles of association, bye-laws or other constitutional documents
 including as referred to in any certificate relating to an Obligor delivered
 pursuant to Schedule 3 (Conditions precedent).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Contract
 Price
 means the price of the Ship payable under the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counter
 Guarantees means each of the counter guarantees, executed by a Counter Guarantor
 in favour of the Security Agent in the agreed form and Counter Guarantee means any
 of them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counter
 Guarantor A means a person (other than Counter Guarantor B) acceptable to the
 Lenders at their discretion which may now or at any time throughout the
 Facility Period guarantee the obligations and liabilities of the Borrower to
 the Lenders and which is designated to be the “Counter Guarantor A” in the
 Counter Guarantee executed by it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counter
 Guarantor B means a person (other than Counter Guarantor A) acceptable to the
 Lenders at their discretion which may now or at any time throughout the
 Facility Period guarantee the obligations and liabilities of the Borrower to
 the Lenders and which is designated to be the “Counter Guarantor B” in the
 Counter Guarantee executed by it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counter
 Guarantors means together, the Counter Guarantor A and the Counter Guarantor B
 and Counter
 Guarantor means any of them. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counter
 Guarantor Representations Letter means a letter dated 21 August 2009 issued by
 Counter Guarantor A to the Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counter
 Guarantor Subsidiary means the Subsidiary of Counter Guarantor A
 designated in the Counter Guarantee executed by Counter Guarantor A.

 

3

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Deed of
 Covenant means a first deed of covenant by the Borrower in favour of the
 Security Agent in the agreed form.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Default means an Event of Default or any
 event or circumstance which would (with the expiry of a grace period, the
 giving of notice, the making of any determination under the Finance Documents
 or any combination of them) be an Event of Default.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Defaulting
 Lender means any Lender:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 which has failed to make its participation in an Advance available or
 has notified the Agent that it will not make its participation in an Advance
 available by the Utilisation Date of that Advance in accordance with clause
 5.4 (Lenders’
 participation); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 which has otherwise rescinded or repudiated a Finance Document; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 with respect to which an Insolvency Event has occurred and is
 continuing,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 unless, in the case of paragraph (a) above:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 its failure to pay is caused by:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (A)

 	
 administrative or technical error; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (B)

 	
 a Disruption Event; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 payment is made within three Business Days of its due date; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 the Lender is disputing in good faith whether it is contractually
 obliged to make the payment in question.

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delivery means the delivery and acceptance
 of the Ship by the Borrower under the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delivery
 Commitment means the amount specified in Schedule 2 (Ship information), as
 cancelled or reduced pursuant to any provision of this Agreement, to be used
 partly to finance its Delivery Instalment.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delivery Date means the date on which the Ship
 is delivered to the Borrower pursuant to the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delivery
 Instalment means the instalment of the Contract Price falling due on Delivery.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Disruption Event means either or both of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 a material disruption to those payment or communications systems or
 to those financial markets which are, in each case, required to operate in
 order for payments to be made in connection with the Facility (or otherwise
 in order for the transactions contemplated by the Finance Documents to be
 carried out) which disruption is not caused by, and is beyond the control of,
 any of the Parties; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the occurrence of any other event which results in a disruption (of a
 technical or systems-related nature) to the treasury or payments operations
 of a Party preventing that, or any other Party:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 from performing its payment obligations under the Finance Documents;
 or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 from communicating with other Parties in accordance with the terms of
 the Finance Documents,

 

4

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (and which (in either such case)) is not caused by, and is beyond the
 control of, the Party whose operations are disrupted.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Earnings means, in relation to the Ship and
 a person, all money at any time payable to that person for or in relation to
 the use or operation of the Ship including freight, hire and passage moneys,
 money payable to that person for the provision of services by or from the
 Ship or under any charter commitment, requisition for hire compensation,
 remuneration for salvage and towage services, demurrage and detention moneys
 and damages for breach and payments for termination or variation of any
 charter commitment.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Enforcement
 Costs
 means any costs, expenses, liabilities or other amounts in respect of which
 any amount is payable under clauses 14.4 (Indemnity concerning security) or 16.3 (Enforcement
 and preservation costs) or under any other Finance Document to
 which those provisions apply and any remuneration payable to a Receiver in
 connection with any Security Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Environmental Claims means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 enforcement, clean-up, removal or other governmental or regulatory
 action or orders or claims instituted or made pursuant to any Environmental
 Laws or resulting from a Spill; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any claim made by any other person relating to a Spill.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Environmental
 Incident means any Spill from any Fleet Vessel in circumstances where:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any Fleet Vessel or its owner, operator or manager may be liable for
 Environmental Claims arising from the Spill (other than Environmental Claims
 arising and fully satisfied before the date of this Agreement); and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any Fleet Vessel may be arrested or attached in connection with any
 such Environmental Claim.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Environmental
 Laws
 means all laws, regulations and conventions concerning pollution or
 protection of human health or the environment.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Event of
 Default means any event or circumstance specified as such in clause 28 (Events of
 Default).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Existing Loan
 Agreement means the $80,000,000 secured loan agreement dated 11 March 2008
 entered into between (i) the Borrower, (ii) DnB NOR Bank ASA (now known as
 DNB Bank ASA) as original lender and DnB
 NOR Bank ASA (now known as DNB Bank ASA) as mandated lead arranger, underwriter, agent and security trustee under which $80,000,000 is outstanding at the date
 of this Agreement. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Facility means the term loan facility made
 available under this Agreement as described in clause 2 (The Facility).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Facility
 Office means the office or offices notified by a Lender to the Agent in
 writing on or before the date it becomes a Lender (or, following that date,
 by not less than five Business Days’ written notice) as the office
 through which it will perform its obligations under this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Facility Period means the period
 from and including the date of this Agreement to and including the date on
 which the Total Commitments have reduced to zero and all indebtedness of the
 Obligors under the Finance Documents has been fully paid and discharged.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fee Letter means any letter dated on or
 about the date of this Agreement between the Arrangers and the Borrower (or
 the Agent and the Borrower) setting out any of the fees referred to in clause
 11 (Fees).

 

5

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Final Repayment Date means, subject to clause 34.7 (Business
 Days), the earlier of (a) 31 March 2014 and (b) the 12th
 Repayment Date (if, with approval, the Delivery Date shall be delayed to a
 date between 1 December 2010 and 16 February 2011) or, as the case may be,
 the 13th Repayment Date (if, with approval, the Delivery Date
 shall be delayed to a date between 1 September 2010 and 30 November 2010) or,
 as the case may be, the 14th Repayment Date (if the Delivery Date
 shall be on or before 31 August 2010).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Finance
 Documents means this Agreement, any Fee Letter, the Counter Guarantor
 Representations Letter, the Security Documents, any Transfer Certificate and
 any other document designated as such by the Agent and the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Finance Party means the Agent, the Security
 Agent, any Arranger or a Lender.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Financial
 Indebtedness means any indebtedness for or in respect of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 moneys borrowed;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any amount raised by acceptance under any acceptance credit facility
 or dematerialised equivalent;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 any Treasury Transaction (and, when calculating the value of that
 Treasury Transaction, only the marked to market value shall be taken into
 account);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 any amount of any liability under an advance or deferred purchase
 agreement if (a) one of the primary reasons behind entering into the
 agreement is to raise finance or (b) the agreement is in respect of the
 supply of assets or services and payment is due more than 180 days after the
 date of supply;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 any amount raised under any other transaction (including any forward
 sale or purchase agreement) having the commercial effect of a borrowing; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (j)

 	
 the amount of any liability in respect of any guarantee for any of
 the items referred to in paragraphs (a) to (i) above.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 First Repayment Date means, subject to
 clause 34.7 (Business Days), the earlier of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the date falling three months after the Last Availability Date; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the date falling three months after the Delivery Date. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fixed Rate Differential Account means any
 Account designated as a “Fixed Rate Differential Account” for the
 purposes of clause 26 (Bank Accounts).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fixed Rate Differential Amount means in
 respect of any Interest Period, an amount accruing on the Loan at a rate
 equal to 3.25% less LIBOR during that Interest Period (the Rate),
 which amount shall accrue when the Rate is positive and nil otherwise.

 

6

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Flag State means the country specified in
 Schedule 2 (Ship information), or such other state
 or territory as may be approved by the Lenders, at the request of the
 Borrower, as being the “Flag State” for the purposes of the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fleet Vessel means the Ship and any other
 vessel directly or indirectly owned by any Obligor or any Subsidiary of an
 Obligor.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 GAAP means International Accounting
 Standards, International Financial Reporting Standards and related
 interpretations as amended, supplemented, issued or adopted from time to time
 by the International Accounting Standards Board to the extent applicable to
 the relevant financial statements.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 GasLog means the company described as
 such in Schedule 1 (The original parties).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 GasLog
 Carriers means the company described as such in Schedule 1 (The
 original parties).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 GasLog
 Guarantee means the guarantee, executed by GasLog in favour of the Security
 Agent in the agreed form.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 GasLog
 Carriers Guarantee means the guarantee, executed by GasLog Carriers in
 favour of the Security Agent in the agreed form.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Group means a Counter Guarantor and its
 Subsidiaries for the time being and, for the purposes of clause 18.1 (Financial
 statements) or clause 5 of each of the Counter Guarantees (Financial
 Covenants), any other entity required to be treated as a
 subsidiary in its consolidated accounts in accordance with GAAP and/or any
 applicable law.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Guarantees means the GasLog Guarantee and the
 GasLog Carriers Guarantee and Guarantee means any of them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Guarantors means persons acceptable to the
 Lenders at their discretion which may now or at any time throughout the
 Facility Period guarantee the obligations and liabilities of the Borrower to
 the Lenders.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Holding
 Company means, in relation to a company or corporation, any other company or
 corporation in respect of which it is a Subsidiary.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Indemnified Person means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 each Finance Party and each Receiver and any attorney, agent or other
 person appointed by them under the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 each Affiliate of those persons; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any officers, employees or agents of any of the above persons.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Insolvency
 Event
 in relation to a Finance Party means that the Finance Party:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 is dissolved (other than pursuant to a consolidation, amalgamation or
 merger);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 becomes insolvent or is unable to pay its debts or fails or admits in
 writing its inability generally to pay its debts as they become due;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 makes a general assignment, arrangement or composition with or for
 the benefit of its creditors;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 institutes or has instituted against it, by a regulator, supervisor
 or any similar official with primary insolvency, rehabilitative or regulatory
 jurisdiction over it in the jurisdiction of its incorporation or organisation
 or the jurisdiction of its head or home office, a proceeding seeking a
 judgment of insolvency or bankruptcy or any other relief under any bankruptcy
 

 

7

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 or insolvency law or other similar law affecting creditors’ rights,
 or a petition is presented for its winding up or liquidation by it or such
 regulator, supervisor or similar official;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 has instituted against it a proceeding seeking a judgment of
 insolvency or bankruptcy or any other relief under any bankruptcy or
 insolvency law or other similar law affecting creditors’ rights, or a
 petition is presented for its winding up or liquidation, and, in the case of
 any such proceeding or petition instituted or presented against it, such
 proceeding or petition is instituted or presented by a person or entity not
 described in paragraph (d) above and:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 results in a judgment of insolvency or bankruptcy or the entry of an
 order for relief or the making of an order for its winding up or liquidation;
 or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 is not dismissed, discharged, stayed or restrained in each case
 within 30 days of the institution or presentation thereof;

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 has exercised in respect of it one or more of the stabilisation
 powers pursuant to Part 1 of the Banking Act 2009 and/or has instituted
 against it a bank insolvency proceeding pursuant to Part 2 of the Banking Act
 2009 or a bank administration proceeding pursuant to Part 3 of the Banking
 Act 2009;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 has a resolution passed for its winding up, official management or
 liquidation (other than pursuant to a consolidation, amalgamation or merger);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 seeks or becomes subject to the appointment of an administrator,
 provisional liquidator, conservator, receiver, trustee, custodian or other
 similar official for it or for all or substantially all its assets;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 has a secured party take possession of all or substantially all its
 assets or has a distress, execution, attachment, sequestration or other legal
 process levied, enforced or sued on or against all or substantially all its
 assets and such secured party maintains possession, or any such process is
 not dismissed, discharged, stayed or restrained, in each case within 30 days
 thereafter;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (j)

 	
 causes or is subject to any event with respect to it which, under the
 applicable laws of any jurisdiction, has an analogous effect to any of the
 events specified in paragraphs (a) to (i) above; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (k)

 	
 takes any action in furtherance of, or indicating its consent to,
 approval of, or acquiescence in, any of the foregoing acts.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Insurance
 Notice means a notice of assignment in the form scheduled to the Deed of
 Covenant or in another approved form.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Insurances means, in relation to the Ship:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 all policies and contracts of insurance; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 all entries in a protection and indemnity or war risks or other
 mutual insurance association

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 in the name of the Ship’s owner or the joint names of its owner and
 any other person in respect of or in connection with the Ship and/or its
 owner’s Earnings from the Ship and includes all benefits thereof (including
 the right to receive claims and to return of premiums).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Interbank
 Market means the London interbank market.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Interest
 Period means, in relation to the Loan, each period determined in accordance
 with clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each
 period determined in accordance with clause 8.3 (Default interest).

 

8

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 IPO means the initial public offering
 of shares of common stock of GasLog on an Approved Exchange.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 IPO Change of
 Control means if, at any time after an IPO has been completed:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the current beneficial owners of the Counter Guarantors fail to
 maintain, in aggregate, legally and/or beneficially, and either directly or
 indirectly, at least: 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 from the date when the IPO is completed until the date falling 12
 months thereafter (the First Anniversary), 30%;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 from the First Anniversary until the date falling 12 months
 thereafter (the Second Anniversary), 25%;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 from the Second Anniversary until the date falling 12 months
 thereafter (the Third Anniversary), 20%; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iv)

 	
 from the Third Anniversary and at all other times thereafter, 15%,

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 of the issued share capital of GasLog (or such other public vehicle
 owning the Borrower); or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the current beneficial owners of the Counter Guarantors cease to be,
 in aggregate, the largest direct or indirect shareholders of the Guarantors
 or the Borrower (with the exception of any passive financial institution) or
 cease to have the right or the ability to control, either directly or
 indirectly, the affairs or composition of the majority of the board of
 directors (or equivalent) of GasLog (or such other public vehicle owning the
 Borrower); or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 there is a change of 15% or more in the shareholding of, or in the
 voting rights relative to, Counter Guarantor A from that described to the
 Lenders on or before the Restatement Date,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 in any case without the prior written consent of the Agent (acting
 with the authorisation of the Lenders).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Last Availability Date means 16 February 2011 (or such later date
 as may be approved by the Lenders).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Legal Reservations means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the principle that equitable remedies may be granted or refused at
 the discretion of a court and the limitation of enforcement by laws relating
 to insolvency, reorganisation and other laws generally affecting the rights
 of creditors;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the time barring of claims under the Limitation Acts, the possibility
 that an undertaking to assume liability for, or indemnify a person against,
 non-payment of UK stamp duty may be void and defences of set-off or
 counterclaim; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 similar principles, rights and defences under the laws of any
 Relevant Jurisdiction.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Lender means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any Original Lender; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any bank, financial institution, trust, fund or other entity which
 has become a Party in accordance with clause 29 (Changes to the Lenders),

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 which in each case has not ceased to be a Party in accordance with
 the terms of this Agreement.

 

9

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 LIBOR means, in relation to the Loan or
 any part of it or any Unpaid Sum:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the applicable Screen Rate; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 (if no Screen Rate is available for the relevant Interest Period) the
 arithmetic mean of the rates (rounded upwards to four decimal places) as
 supplied to the Agent at its request quoted by the Reference Banks to leading
 banks in the Interbank Market,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 as of 11:00 a.m. on the Quotation Day for the offering of deposits in
 dollars for a period comparable to the Interest Period for the Loan or
 relevant part of it or Unpaid Sum.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Loan means the loan made or to be made
 under the Facility or the principal amount outstanding for the time being of
 that loan.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Loss Payable
 Clauses means the provisions concerning payment of claims under the Ship’s
 Insurances in the form scheduled to the Deed of Covenant or in another
 approved form.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Major
 Casualty means any casualty to a vessel for which the total insurance claim,
 inclusive of any deductible, exceeds or may exceed the Major Casualty Amount.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Major
 Casualty Amount means $3,000,000 (or the equivalent in any other
 currency).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Majority
 Lenders means a Lender or Lenders whose Commitments aggregate more than 662⁄3%
 of the Total Commitments (or, if the Total Commitments have been reduced to
 zero, aggregated more than 662⁄3% of the Total
 Commitments immediately prior to the reduction).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Manager means GasLog LNG Services Ltd.
 (formerly known as Ceres LNG Services Ltd.) or another manager appointed by
 the Borrower in accordance with clause 21.3 (Manager).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Manager’s
 Undertaking means an undertaking by any manager of the Ship to the Security Agent
 in the agreed form pursuant to clause 21.3 (Manager).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mandatory
 Cost
 means the percentage rate per annum calculated by the Agent in accordance
 with Schedule 6 (Mandatory Cost formulae).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Margin means 2.75% per annum.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Material
 Adverse Effect means, in the reasonable opinion of the Majority
 Lenders, a material adverse effect on:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the business, operations, property or condition (financial or
 otherwise) of any of the Obligors or a Group taken as a whole, which
 prejudices the ability of an Obligor to perform its obligations under the
 Finance Documents; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the validity or enforceability of, or the effectiveness or ranking of
 any Security Interest granted or purporting to be granted pursuant to any of,
 the Finance Documents or the rights or remedies of any Finance Party under
 any of the Finance Documents. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Minimum Value means:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 from the date of this Agreement up to (but not including) the date of
 delivery of the Utilisation Request in respect of the Delivery Commitment,
 the amount in dollars which is at any relevant time 120% of the aggregate
 outstanding amount of the Loan; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 from the date of delivery of the Utilisation Request in respect of
 the Delivery Commitment, the amount in dollars which is at any relevant time
 120% of the Available Facility.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mortgage means a first mortgage of the Ship
 in the agreed form by the Borrower in favour of the Security Agent. 

 

10

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mortgage
 Period means the period from the date the Mortgage is executed and
 registered until the date such Mortgage is released and discharged or the
 Total Loss Repayment Date.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Obligors means the parties to the Finance
 Documents (other than Finance Parties and the manager of the Ship) and Obligor
 means any one of them.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Original Financial Statements means:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the audited consolidated financial statements of a Group for its
 financial year ended 31 December 2008; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the audited financial statements of the Borrower, each of the
 Guarantors, the Counter Guarantor Subsidiary and the Counter Guarantor A for
 their respective financial years ended 31 December 2008.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Original
 Obligor means each party to this Agreement and the Original Security
 Documents (other than a Finance Party and the Manager).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Original Security Documents means:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Pre-Delivery Security Assignment;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the Counter Guarantees and the Guarantees;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Mortgage;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Deed of Covenant;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 the Share Security;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 the Charter Assignment;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 the Account Security; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 any Manager’s Undertaking if required under clause 21.3 (Manager).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Participating
 Member State means any member state of the European Community that adopts or has
 adopted the euro as its lawful currency in accordance with legislation of the
 European Community relating to Economic and Monetary Union.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Party means a party to this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Permitted
 Maritime Liens means, in relation to a vessel:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 unless a Default is continuing, any ship repairer’s or outfitter’s
 possessory lien in respect of such vessel for an amount not exceeding the
 Major Casualty Amount;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any lien on such vessel for master’s, officer’s or crew’s wages
 outstanding in the ordinary course of its trading; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 liens for master’s disbursements incurred in the ordinary course of
 business and any other lien arising by operation of law in the ordinary
 course of the business, repair or maintenance of the Ship, and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any lien on such vessel for salvage.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Permitted
 Security Interests means, in relation to the Ship, any Security Interest over
 it which is:

 

11

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 granted under the Existing Loan Agreement (up until the first
 Utilisation Date) and by the Finance Documents; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a Permitted Maritime Lien; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any Security Interest created in favour of a claimant or defendant in
 any proceedings or arbitration as security for costs and expenses while the
 Borrower is actively pursuing a claim or defending such proceedings or
 arbitration in good faith; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any Security Interests arising by operation of law in respect of
 taxes which are not overdue for payment or in respect of taxes being
 contested in good faith by appropriate steps; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 approved by the Majority Lenders

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 PROVIDED that in the case of (c) and (d) above the relevant liens (or
 any claim relating thereto) are, in the reasonable opinion of the Agent,
 covered by insurance or, as the case may be, appropriate reserves held with
 the Account Bank in an Account acceptable to the Agent.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pollutant means and includes crude oil and
 its products, any other polluting, toxic or hazardous substance and any other
 substance whose release into the environment is regulated or penalised by
 Environmental Laws.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pre-Delivery
 Available Facility means, at any relevant time, the Pre-Delivery
 Commitment then available for borrowing under this Agreement in accordance
 with clause 2.3 (Pre-Delivery Available Facility).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pre-Delivery
 Commitment means the amount specified in Schedule 2 (Ship information), as
 cancelled or reduced pursuant to any relevant provision of this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pre-Delivery
 Security Assignment means an assignment of the Building Contract and
 the Refund Guarantee by the Borrower in favour of the Security Agent in the
 agreed form.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Price means the aggregate purchase
 price of the Ship, comprising (i) the Contract Price payable under the
 Building Contract and (ii) the transfer price paid to original buyer upon
 novation of the Building Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Quotation Day means, in relation to any period
 for which an interest rate is to be determined, two Business Days before the
 first day of that period unless market practice differs in the Interbank
 Market for a currency, in which case the Quotation Day for that currency
 shall be determined by the Agent in accordance with market practice in the
 Interbank Market (and if quotations would normally be given by leading banks
 in the Interbank Market on more than one day, the Quotation Day will be the
 last of those days).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Receiver means a receiver or a receiver
 and manager or an administrative receiver appointed in relation to the whole
 or any part of any Charged Property under any relevant Security Document.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Reference
 Banks
 means the principal offices in London, Athens and Zurich respectively of DNB
 Bank ASA, National Bank of Greece S.A. and UBS AG or such other banks as may
 be appointed by the Agent with the consent of the Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Refund
 Guarantee means the guarantee details of which are specified in Schedule 2
 (Ship
 information) issued by the Refund Guarantor in respect of the
 Builder’s obligations under the Building Contract and any further guarantee
 to be issued by the Refund Guarantor in respect of such obligations.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Refund
 Guarantor means the refund guarantor specified in Schedule 2 (Ship information).

 

12

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Registry means such registrar,
 commissioner or representative of the relevant Flag State who is duly
 authorised and empowered to register the Ship, the Borrower’s title to the
 Ship and the Mortgage under the laws of its Flag State.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Relevant
 Jurisdiction means, in relation to an Obligor:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 its jurisdiction of incorporation;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any jurisdiction where any Charged Property owned by it is situated;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any jurisdiction where it conducts its business; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any jurisdiction whose laws govern the perfection of any of the
 Security Documents entered into by it.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Repayment Date means:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the First Repayment Date;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 each of the dates falling at three monthly
 intervals thereafter up to but not including the Final Repayment Date; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Final Repayment Date.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Repeating
 Representations means each of the representations and warranties
 set out in clauses 17.1 (Status) to 17.10 (Ranking and effectiveness of Security
 Documents).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Requisition
 Compensation means any compensation paid or payable by a government entity for the
 requisition for title, confiscation or compulsory acquisition of the Ship.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Reserve
 Account means any Account designated as a “Reserve Account” under
 clause 26 (Bank accounts).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Restatement
 Date
 means the date upon which this Agreement is amended and restated, being          2012.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Retention
 Account means any Account designated as a “Retention Account” under
 clause 26 (Bank accounts).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Revenue
 Account means any Account designated as a “Revenue Account” under
 clause 26 (Bank accounts).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Screen Rate means the British Bankers
 Association Interest Settlement Rate for dollars and the relevant period
 displayed on the appropriate page of the Reuters screen. If the agreed page
 is replaced or service ceases to be available, the Agent may specify another
 page or service displaying the appropriate rate after consultation with the
 Borrower and the Lenders.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security
 Agent
 includes any person as may be appointed security agent and trustee for the
 Lenders under this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security Documents means:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Original Security Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any other document as may after the date of this Agreement be
 executed to guarantee and/or secure any amounts owing to the Finance Parties
 under this Agreement or any other Security Document.

 

13

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security
 Interest means a mortgage, charge, pledge, lien, assignment, trust,
 hypothecation or other security interest of any kind securing any obligation
 of any person or any other agreement or arrangement having a similar effect.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security
 Value
 means, at any time until the Ship has become a Total Loss or, as the case may
 be, the Building Contract is cancelled, terminated or rescinded, the amount
 in dollars which,
 at that time, is the aggregate of (a) the value of the Ship (or, if less, the
 maximum amount capable of being secured by the Mortgage) or, prior to the
 date of delivery of the Utilisation Request in respect of the Delivery
 Commitment, the value of the Building Contract and (b) the value of any
 additional security then held by the Security Agent provided under clause 24
 (Minimum
 security value).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Selection
 Notice means a notice substantially in the form set out in Schedule 5 (Selection
 Notice) given in accordance with clause 9 (Interest Periods).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Share Security means the document constituting a
 first Security Interest by its Holding Company in favour of the Security
 Agent in the agreed form in respect of all of the shares in the Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Ship means the ship (to be built by
 the Builder under the Building Contract) described in Schedule 2 (Ship
 information).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Ship
 Representations means each of the representations and warranties
 set out in clauses 17.27 (Ship status) and 17.28 (Ship’s
 employment).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Spill means any spill, release or
 discharge of a Pollutant into the environment.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subsidiary of a person means any other
 person:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 directly or indirectly controlled by such person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 of whose dividends or distributions on ordinary voting share capital
 such person is entitled to receive more than 50%.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tax means any tax, levy, impost, duty
 or other charge or withholding of a similar nature (including any penalty or
 interest payable in connection with any failure to pay or any delay in paying
 any of the same) and Taxation shall be construed accordingly.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total
 Commitments means the aggregate of the Commitments, being $147,500,000 at the
 date of this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total Loss means, in relation to a vessel,
 its:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 actual, constructive, compromised or arranged total loss; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 requisition for title, confiscation or other compulsory acquisition
 by a government entity; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 condemnation, capture, seizure, arrest or detention for more than 30
 days; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 hijacking or theft for more than 60 days.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total Loss
 Date
 means, in relation to the Total Loss of a vessel:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in the case of an actual total loss, the date it happened or, if such
 date is not known, the date on which the vessel was last reported;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 in the case of a constructive, compromised, agreed or arranged total
 loss, the earliest of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 the date notice of abandonment of the vessel is given to its
 insurers; or

 

14

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 if the insurers do not admit such a claim, the date later determined
 by a competent court of law to have been the date on which the total loss
 happened; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 the date upon which a binding agreement as to such compromised or
 arranged total loss has been entered into by the vessel’s insurers;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in the case of a requisition for title, confiscation or compulsory
 acquisition, the date it happened;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 in the case of condemnation, capture, seizure, arrest or detention,
 the date 30 days after the date upon which it happened; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 in the case of hijacking or theft, the date 60 days after the date
 upon which it happened.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total Loss
 Repayment Date means where the Ship has become a Total Loss after
 Delivery the earlier of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the date 180 days after its Total Loss Date; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the date upon which insurance proceeds or Requisition Compensation
 for such Total Loss are paid by insurers or the relevant government entity.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Transfer
 Certificate means a certificate substantially in the form set out in
 Schedule 7 (Form of Transfer Certificate) or any
 other form agreed between the Agent and the Borrower or at any time after the
 occurrence of an Event of Default required by the Agent.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Transfer Date means, in relation to a transfer,
 the later of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the proposed Transfer Date specified in the Transfer Certificate; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the date on which the Agent executes the Transfer Certificate.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Treasury
 Transaction means any derivative transaction entered into in connection with
 protection against or benefit from fluctuation in any rate or price.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Trust
 Property means, collectively:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 all moneys duly received by the Security Agent under or in respect of
 the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any portion of the balance on any Account held by or charged to the
 Security Agent at any time;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Security Interests, guarantees, security, powers and rights given
 to the Security Agent under and pursuant to the Finance Documents including,
 without limitation, the covenants given to the Security Agent in respect of
 all obligations of any Obligor;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 all assets paid or transferred to or vested in the Security Agent or
 its agent or received or recovered by the Security Agent or its agent in
 connection with any of the Finance Documents whether from any Obligor or any
 other person; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 all or any part of any rights, benefits, interests and other assets
 at any time representing or deriving from any of the above, including all
 income and other sums at any time received or receivable by the Security
 Agent or its agent in respect of the same (or any part thereof).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Unpaid Sum means any sum due and payable but
 unpaid by an Obligor under the Finance Documents.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation means the making of an Advance.

 

15

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation
 Date
 means the date on which a Utilisation is made.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation
 Request means a notice substantially in the form set out in Schedule 4 (Utilisation
 Request).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 VAT means value added tax as provided
 for in the Value Added Tax Act 1994 and any other tax of a similar nature and
 the analogous taxes in any other relevant jurisdictions.

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2

 	
  

 	
 Construction

 
	
  

 	
  

 	
  

 
	
 1.2.1

 	
  

 	
 Unless a contrary indication appears, any reference in any of the
 Finance Documents to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Sections, clauses and Schedules are to be construed as
 references to the Sections and clauses of, and the
 Schedules to, the relevant Finance Document and references to a Finance
 Document include its Schedules;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a Finance Document or any other agreement or instrument is a
 reference to that Finance Document or other agreement or instrument as it may
 from time to time be amended, restated, novated or replaced, however
 fundamentally;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 words importing the plural shall include the singular and vice versa;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 a time of day are to London time;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 any person includes its successors in title, permitted assignees or
 transferees;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 the knowledge, awareness and/or beliefs (and similar expressions) of
 any Obligor shall be construed so as to mean the knowledge, awareness and
 beliefs of the director and officers of such Obligor, having made due and
 careful enquiry;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 agreed form
 means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 where a Finance Document has already been executed by the Agent or
 the Security Agent, such Finance Document in its executed form;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 prior to the execution of a Finance Document, the form of such Finance
 Document separately agreed in writing between the Agent and the Borrower,
 whether before or after the date of this Agreement, as the form in which that
 Finance Document is to be executed or another form approved at the request of
 the Borrower;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 approved by
 the Majority Lenders means approved in writing by the Agent acting on
 the instructions of the Majority Lenders (on such conditions as they may
 respectively impose) and otherwise approved means approved in writing by the
 Agent acting on the instructions of all of the Lenders (on such conditions as
 the Agent may impose) and approval and approve shall be construed
 accordingly;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 assets includes present and future
 properties, revenues and rights of every description;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (j)

 	
 an authorisation means any authorisation, consent, concession,
 approval, resolution, licence, exemption, filing, notarisation or
 registration;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (k)

 	
 charter
 commitment means, in relation to a vessel, any charter or contract for the use,
 employment or operation of that vessel or the carriage of people and/or cargo
 or the provision of services by or from it and includes any agreement for
 pooling or sharing income derived from any such charter or contract;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (l)

 	
 control of an entity means:

 

16

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 the power (whether by way of ownership of shares, proxy, contract,
 agency or otherwise) to:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (A)

 	
 cast, or control the casting of, more than 50% of the maximum number
 of votes that might be cast at a general meeting of that entity; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (B)

 	
 appoint or remove all, or the majority, of the directors or other
 equivalent officers of that entity; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (C)

 	
 give directions with respect to the operating and financial policies
 of that entity with which the directors or other equivalent officers of that
 entity are obliged to comply; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 the holding beneficially of more than 50% of the issued share capital
 of that entity (excluding any part of that issued share capital that carries
 no right to participate beyond a specified amount in a distribution of either
 profits or capital);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 and controlled shall be construed accordingly;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (m)

 	
 the term disposal or dispose means a sale,
 transfer or other disposal (including by way of lease or loan but not
 including by way of loan of money) by a person of all or part of its assets,
 whether by one transaction or a series of transactions and whether at the
 same time or over a period of time, but not the creation of a Security
 Interest;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (n)

 	
 dollar/$ means the lawful currency
 of the United States of America;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (o)

 	
 the equivalent of an amount specified in a particular currency
 (the specified
 currency amount) shall be construed as a reference to the amount
 of the other relevant currency which can be purchased with the specified
 currency amount in the London foreign exchange market at or about 11:00 a.m.
 on the date the calculation falls to be made for spot delivery, as
 conclusively determined by the Agent (with the relevant exchange rate of any
 such purchase being the Agent’s spot rate of exchange);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (p)

 	
 a government entity means any government, state or agency of a
 state;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (q)

 	
 a guarantee means any guarantee, letter of credit, bond,
 indemnity or similar assurance against loss, or any obligation, direct or
 indirect, actual or contingent, to purchase or assume any indebtedness of any
 person or to make an investment in or loan to any person or to purchase
 assets of any person where, in each case, such obligation is assumed in order
 to maintain or assist the ability of such person to meet its indebtedness;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (r)

 	
 indebtedness includes any obligation (whether
 incurred as principal or as surety) for the payment or repayment of money,
 whether present or future, actual or contingent;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (s)

 	
 month means a period starting on one
 day in a calendar month and ending on the numerically corresponding day in
 the next calendar month or the calendar month in which it is to end, except
 that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 if the numerically corresponding day is not a Business Day, that
 period shall end on the next Business Day in that month (if there is one) or
 on the immediately preceding Business Day (if there is not); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 if there is no numerically corresponding day in that month, that
 period shall end on the last Business Day in that month,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 and the above rules in paragraphs (i) to (ii) will only apply to
 the last month of any period;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (t)

 	
 an obligation means any
 duty, obligation or liability of any kind;

 

17

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (u)

 	
 something being in the ordinary course of business of a person
 means something that is in the ordinary course of that person’s current
 day-to-day operational business (and not merely anything which that person is
 entitled to do under its Constitutional Documents);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 pay, prepay or repay in clause 27 (Business restrictions)
 includes by way of set-off, combination of accounts or otherwise;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (w)

 	
 a person includes any individual, firm, company, corporation,
 government entity or any association, trust, joint venture, consortium or
 partnership (whether or not having separate legal personality);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (x)

 	
 a regulation includes any regulation, rule, official
 directive, request or guideline (whether or not having the force of law) of
 any governmental, intergovernmental or supranational body, agency, department
 or regulatory, self-regulatory or other authority or organisation and
 includes (without limitation) any Basel 2 Regulation;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (y)

 	
 right means any right, privilege, power
 or remedy, any proprietary interest in any asset and any other interest or
 remedy of any kind, whether actual or contingent, present or future, arising
 under contract or law, or in equity;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (z)

 	
 trustee, fiduciary and fiduciary
 duty has in each case the meaning given to such term under applicable
 law;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (aa)

 	
 (i) the winding up, dissolution, or administration
 of person or (ii) a receiver or administrative receiver or administrator
 in the context of insolvency proceedings or security enforcement actions in
 respect of a person shall be construed so as to include any equivalent or
 analogous proceedings or any equivalent and analogous person or appointee
 (respectively) under the law of the jurisdiction in which such person is
 established or incorporated or any jurisdiction in which such person carries
 on business including (in respect of proceedings) the seeking or occurrences
 of liquidation, winding-up, reorganisation, dissolution, administration,
 arrangement, adjustment, protection or relief of debtors;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (bb)

 	
 wholly-owned
 subsidiary has the meaning given to that term in section 1159 of the
 Companies Act 2006; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (cc)

 	
 a provision of law is a reference to that provision as amended or
 re-enacted.

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.2

 	
  

 	
 Where in this Agreement a provision includes a monetary reference
 level in one currency, unless a contrary indication appears, such reference
 level is intended to apply equally to its equivalent in other currencies as
 of the relevant time for the purposes of applying such reference level to any
 other currencies.

 
	
  

 	
  

 	
  

 
	
 1.2.3

 	
  

 	
 Section, clause and Schedule headings are for ease of
 reference only.

 
	
  

 	
  

 	
  

 
	
 1.2.4

 	
  

 	
 Unless a contrary indication appears, a term used in any other
 Finance Document or in any notice given under or in connection with any
 Finance Document has the same meaning in that Finance Document or notice as
 in this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.5

 	
  

 	
 A Default (other than an Event of Default) is continuing if it has not
 been remedied or waived and an Event of Default is continuing if it has not
 been waived. 

 
	
  

 	
  

 	
  

 
	
 1.2.6

 	
  

 	
 Unless a contrary indication appears, in the event of any
 inconsistency between the terms of this Agreement and the terms of any other
 Finance Document when dealing with the same or similar subject matter, the
 terms of this Agreement shall prevail.

 

18

	
  

 	
  

 	
  

 
	
 1.3

 	
  

 	
 Third party rights

 
	
  

 	
  

 	
  

 
	
 1.3.1

 	
  

 	
 Unless expressly provided to the contrary in a Finance Document for
 the benefit of a Finance Party or another Indemnified Person, a
 person who is not a party to a Finance Document has no right under the
 Contracts (Rights of Third Parties) Act 1999 (the Third Parties Act) to
 enforce or to enjoy the benefit of any term of the relevant Finance Document.

 
	
  

 	
  

 	
  

 
	
 1.3.2

 	
  

 	
 Any Finance Document may be rescinded or varied by the parties to it
 without the consent of any person who is not a party to it (unless otherwise
 provided by this Agreement).

 
	
  

 	
  

 	
  

 
	
 1.3.3

 	
  

 	
 An Indemnified Person who is not a party to a Finance Document may
 only enforce its rights under that Finance Document through a Finance Party
 and if and to the extent and in such manner as the Finance Party may
 determine.

 
	
  

 	
  

 	
  

 
	
 1.4

 	
  

 	
 Finance Documents

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where any other Finance Document provides that this clause 1.4 shall
 apply to that Finance Document, any other provision of this Agreement which,
 by its terms, purports to apply to all or any of the Finance Documents and/or
 any Obligor shall apply to that Finance Document as if set out in it but with
 all necessary changes.

 
	
  

 	
  

 	
  

 
	
 1.5

 	
  

 	
 Conflict of documents

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The terms of the Finance Documents (other than as relates to the
 creation and/or perfection of security) are subject to the terms of this
 Agreement and, in the event of any conflict between any provision of this
 Agreement and any provision of any Finance Document (other than in relation
 to the creation and/or perfection of security) the provisions of this
 Agreement shall prevail.

 

19

SECTION 2 - THE FACILITY

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2

 	
  

 	
 The Facility

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.1

 	
  

 	
 The Facility

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to the terms of this Agreement, the Lenders make available to
 the Borrower a term loan facility in an aggregate amount equal to the Total
 Commitments.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.2

 	
  

 	
 Finance Parties’ rights and obligations

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.2.1

 	
  

 	
 The obligations of each Finance Party under the Finance Documents are
 several. Failure by a Finance Party to perform its obligations under the
 Finance Documents does not affect the obligations of any other Party under
 the Finance Documents. No Finance Party is responsible for the obligations of
 any other Finance Party under the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.2.2

 	
  

 	
 The rights of each Finance Party under or in connection with the
 Finance Documents are separate and independent rights and any debt arising
 under the Finance Documents to a Finance Party from an Obligor shall be a
 separate and independent debt.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.2.3

 	
  

 	
 A Finance Party may, except as otherwise stated in the Finance
 Documents (including clauses 31.25 (All enforcement action through the Security Agent))
 and 32.2 (Finance
 Parties acting together), separately enforce its rights under the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.3

 	
  

 	
 Pre-Delivery Available Facility

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Pre-Delivery Commitment shall only be available for borrowing
 under the Facility for the purpose of refinancing the amounts previously paid
 by the Borrower under the Building Contract (save for an amount of
 $18,122,710 representing the Borrower’s equity in the Ship).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.4

 	
  

 	
 Delay in the Delivery Date

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Delivery Date shall be delayed to (a) a date between 1
 September 2010 and 30 November 2010 the Delivery Commitment and the Total
 Commitments shall be reduced by $2,912,549 or (b) a date between 1 December
 2010 and 16 February 2011 the Delivery Commitment and the Total Commitments
 shall be reduced by $5,868,787.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3

 	
  

 	
 Purpose

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.1

 	
  

 	
 Purpose

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall apply all amounts borrowed under the Facility in
 accordance with this clause 3.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.2

 	
  

 	
 Use before Delivery

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Pre-Delivery Commitment shall initially be made available solely
 for the purpose of assisting the Borrower to finance payment of the amounts
 described in clause 2.3 (Pre-Delivery
 Available Facility).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.3

 	
  

 	
 Use on Delivery

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Delivery Commitment shall initially be made available solely for
 the purpose of assisting the Borrower to finance the Delivery Instalment for
 the Ship in accordance with Article VII of the Building Contract.

 

20

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.4

 	
  

 	
 Monitoring

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Finance Party is bound to monitor or verify the application of any
 amount borrowed pursuant to this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4

 	
  

 	
 Conditions of
 Utilisation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.1

 	
  

 	
 Conditions precedent before Delivery

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Pre-Delivery Commitment shall only become available for borrowing
 under this Agreement if the Agent, or its duly authorised representative, has
 received all of the documents and evidence listed in Part 1 of Schedule 3 (Conditions
 precedent to any Utilisation) in form and substance satisfactory
 to the Agent (which shall include evidence that such documents and evidence
 remain in full force and effect and unamended). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.2

 	
  

 	
 Conditions precedent on Delivery

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Delivery Commitment shall only become available for borrowing
 under this Agreement if the Agent, or its duly authorised representative, has
 received all of the documents and evidence listed in Part 2 of Schedule 3 (Conditions
 precedent on Delivery) in form and substance satisfactory to the
 Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.3

 	
  

 	
 Notice to Lenders

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall notify the Borrower and the Lenders promptly upon
 receiving and being satisfied with all of the documents and evidence
 delivered to it under this clause 4.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.4

 	
  

 	
 Further conditions precedent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Lenders will only be obliged to comply with clause 5.4 (Lenders’
 participation) if on the date of the Utilisation Request and on
 the proposed Utilisation Date:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 no Default is continuing or would result from the proposed
 Utilisation; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the Repeating Representations and, in relation to the first Utilisation,
 all of the other representations set out in clause 17 (Representations) (except
 the Ship Representations), are true; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in relation to the Utilisation of the Delivery Commitment, the Ship
 Representations are true.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.5

 	
  

 	
 Waiver of conditions precedent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The conditions in this clause 4 are inserted solely for the benefit
 of the Finance Parties and may be waived on their behalf in whole or in part
 and with or without conditions by the Agent acting on the instructions of the
 Lenders.

 

21

SECTION 3 - UTILISATION

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5

 	
  

 	
 Utilisation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.1

 	
  

 	
 Delivery of a
 Utilisation Request

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower may utilise the Facility by delivery to the Agent of a
 duly completed Utilisation Request not later than 11:00 a.m. three Business
 Days before the proposed Utilisation Date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.2

 	
  

 	
 Completion of a Utilisation Request

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.2.1

 	
  

 	
 A Utilisation Request is irrevocable and will not be regarded as
 having been duly completed unless:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the proposed Utilisation Date is a Business Day falling (i) (in the
 case of the Pre-Delivery Commitment) within 30 days of the date of this
 Agreement and (ii) (in the case of the Delivery Commitment) not later than
 200 days after the scheduled delivery date under the Building Contract;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the currency and amount of the Utilisation comply with clause 5.3 (Currency
 and amount);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the proposed Interest Period complies with clause 9 (Interest
 Periods); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 it identifies the purpose for the Utilisation and that purpose
 complies with clause 3 (Purpose).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.2.2

 	
  

 	
 Only one Advance may be requested in each Utilisation Request.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.3

 	
  

 	
 Currency and amount

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The currency specified in a Utilisation Request must be dollars and
 the amount of the proposed Advance must be the lesser of (a) $80,000,000 in
 respect of the Pre-Delivery Commitment and $67,500,000 in respect of the
 Delivery Commitment or, if less, the amount of the Available Facility less
 the amount of the outstanding Loan or (b) such amount as the Agent shall
 determine to be equal to 65% of the Security Value as of the date of such
 Utilisation Request.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.4

 	
  

 	
 Lenders’ participation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.4.1

 	
  

 	
 If the conditions set out in this Agreement have been met, each
 Lender shall make its participation in each Advance available by the
 Utilisation Date through its Facility Office.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.4.2

 	
  

 	
 The amount of each Lender’s participation in the Advance will be
 equal to the proportion borne by its Commitment to the Total Commitments
 immediately prior to making the Advance.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.4.3

 	
  

 	
 The Agent shall promptly notify each Lender of the amount of the
 Advance and the amount of its participation in the Advance.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.4.4

 	
  

 	
 The Agent shall pay all amounts received by it in respect of each
 Advance (and its own participation in it, if any) to the Borrower or for its
 account in accordance with the instructions contained in the Utilisation
 Request.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5.5

 	
  

 	
 Condition
 subsequent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall within three Business Days following the first
 Utilisation provide duly executed acknowledgements of the notices of
 assignment as required by the Pre-Delivery Security Assignment.

 

22

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 REPAYMENT, PREPAYMENT AND CANCELLATION

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 6

 	
  

 	
 Repayment

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 6.1

 	
  

 	
 Repayment

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall on each Repayment Date repay such part of the Loan
 as is required to be repaid by clause 6.2 (Scheduled repayment of Facility).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 6.2

 	
  

 	
 Scheduled repayment of Facility

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 To the extent not previously reduced, the Loan shall be repaid by
 instalments on each Repayment Date by the amount specified below (as revised
 by clause 6.3):

 

	
  

 	
  

 
	
 Repayment Date

 	
 Amount $

 
	

 	

 
	
 First

 	
 2,912,549

 
	
  

 	
  

 
	
 Second

 	
 2,956,238

 
	
  

 	
  

 
	
 Third

 	
 3,000,581

 
	
  

 	
  

 
	
 Fourth

 	
 3,045,590

 
	
  

 	
  

 
	
 Fifth

 	
 3,091,274

 
	
  

 	
  

 
	
 Sixth

 	
 3,137,643

 
	
  

 	
  

 
	
 Seventh

 	
 3,184,707

 
	
  

 	
  

 
	
 Eighth

 	
 3,232,478

 
	
  

 	
  

 
	
 Ninth

 	
 3,280,965

 
	
  

 	
  

 
	
 Tenth

 	
 3,330,180

 
	
  

 	
  

 
	
 Eleventh

 	
 3,380,132

 
	
  

 	
  

 
	
 Twelfth

 	
 3,430,834

 
	
  

 	
  

 
	
 Thirteenth

 	
 3,482,297

 
	
  

 	
  

 
	
 Fourteenth

 	
 106,034,531

 
	
  

 	
  

 
	
 Total

 	
 147,500,000

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If, with approval, the Delivery Date shall be delayed (a) to a date
 between 1 September 2010 and 30 November 2010 the First Repayment Date shall
 be excluded or (b) to a date between 1 December 2010 and 16 February 2011 the
 First and Second Repayment Date shall be excluded.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On the Final Repayment Date (without prejudice to any other provision
 of this Agreement), the Loan shall be repaid in full.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 6.3

 	
  

 	
 Adjustment of scheduled repayments

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Total Commitments have been partially reduced under this
 Agreement and/or any part of the Loan is prepaid (other than under clause 6.2)
 before any Repayment Date, the amount of the instalment by which the Loan
 shall be repaid under clause 6.2 on any such Repayment Date (as reduced by any
 earlier operation of this clause 6.3) shall be reduced pro rata to such 

 

23

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 reduction in the Total Commitments (except in the case of a
 prepayment under clause 7.4 (Fixed Rate Differential Amount Prepayment)
 where the reduction shall be treated as reducing the instalments in inverse
 chronological order by its aggregate amount).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7

 	
  

 	
 Illegality,
 prepayment and cancellation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.1

 	
  

 	
 Illegality

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If it becomes unlawful in any applicable jurisdiction for a Lender to
 perform any of its obligations as contemplated by this Agreement or to fund or
 maintain its participation in the Loan:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 that Lender shall promptly notify the Agent upon becoming aware of
 that event;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 upon the Agent notifying the Borrower, the Commitment of that Lender
 will be immediately cancelled; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the Borrower shall repay that Lender’s participation in the Loan on
 the last day of the Interest Period occurring after the Agent has notified
 the Borrower or, if earlier, the date specified by the Lender in the notice
 delivered to the Agent (being no earlier than the last day of any applicable
 grace period permitted by law).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.2

 	
  

 	
 Voluntary cancellation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower may, if it gives the Agent not less than
 three Business Days’ (or such shorter period as the Majority Lenders may
 agree) prior notice, cancel the whole or any part (being a minimum amount of
 $1,000,000 and a multiple of $1,000,000 of any part of the Available Facility
 which is undrawn at the proposed date of cancellation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.3

 	
  

 	
 Voluntary prepayment

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower may, if it gives the Agent not less than three Business
 Days’ (or such shorter period as the Majority Lenders may agree) prior
 written notice, prepay the whole or any part of the Loan (but if in part,
 being an amount that reduces the amount of the Loan by a minimum amount of
 $1,000,000 and which is a multiple of $1,000,000) on the last day of an
 Interest Period in respect of the amount to be prepaid.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.4

 	
  

 	
 Fixed Rate Differential Amount Prepayment

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On each Repayment Date the Borrower shall (unless otherwise approved)
 apply any amount standing to the credit of the Fixed Rate Differential
 Account in prepayment of the Loan.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.5

 	
  

 	
 Right of cancellation and prepayment in
 relation to a single Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.5.1

 	
  

 	
 If:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any sum payable to any Lender by an Obligor is required to be
 increased under clause 12.2 (Tax gross-up); or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any Lender claims indemnification from the Borrower under clause 12.3 (Tax
 indemnity) or clause 13.1 (Increased costs),

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the Borrower may, whilst the circumstance giving rise to the
 requirement or indemnification continues, give the Agent notice of
 cancellation of the Commitment of that Lender and its intention to procure
 the repayment of that Lender’s participation in the Loan.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.5.2

 	
  

 	
 On receipt of a notice of cancellation referred to in clause 7.5.1 above,
 the Commitment of that Lender shall immediately be reduced to zero.

 

24

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.5.3

 	
  

 	
 On the last day of each Interest Period which ends after the Borrower
 has given notice of cancellation under clause 7.5.1 above (or, if earlier, the
 date specified by the Borrower in that notice), the Borrower shall repay that
 Lender’s participation in the Loan.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.5.4

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 If any Lender becomes a Defaulting Lender, the Borrower may, at any
 time whilst the Lender continues to be a Defaulting Lender, give the Agent
 three Business Days’ notice of cancellation of the Commitment of that Lender.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 On the notice referred to in paragraph (a) above becoming effective,
 the Commitment of the Defaulting Lender shall immediately be reduced to zero.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 The Agent shall as soon as practicable after receipt of a notice
 referred to in paragraph (a) above, notify all the Lenders.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.6

 	
  

 	
 Total Loss

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On the Total Loss Repayment Date:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Total Commitments will be reduced to zero; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the Borrower shall prepay the Loan.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.7

 	
  

 	
 Mandatory pre-delivery cancellation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If, prior to Delivery:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the Building Contract is for any reason and by any method cancelled,
 terminated or rescinded; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 a competent court or arbitration panel decides that the Building
 Contract has been validly cancelled, terminated or rescinded; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the Building Contract is varied in a way prohibited by any Finance
 Document; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 the Refund Guarantee is repudiated, cancelled, rescinded or otherwise
 terminated or is not or ceases to be legal, valid, binding and enforceable
 obligations of the Refund Guarantor or it is or becomes unlawful for the
 Refund Guarantor to perform its obligations under it PROVIDED ALWAYS THAT the
 Refund Guarantee is not immediately replaced or reinstated or reconfirmed in
 a form and manner and by a person in each case approved in advance by the
 Lenders; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 Delivery has not occurred by the Last Availability Date,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 then the Agent may, and shall if so directed by the Lenders, by
 notice to the Borrower with effect from the date 25 Business Days after the
 giving of such notice (or such later date as may be approved in advance by
 the Majority Lenders) cancel the Total Commitments. The Borrower shall on the
 date such cancellation takes effect prepay the Loan in full.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.8

 	
  

 	
 Automatic cancellation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any part of the Total Commitments which has not become available by
 the Last Availability Date shall be automatically cancelled at close of
 business in London on the Last Availability Date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9

 	
  

 	
 Restrictions

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9.1

 	
  

 	
 Any notice of cancellation or prepayment given by any Party under
 this clause 7 shall be irrevocable and, unless a contrary indication appears
 in this Agreement, shall specify the date 

 

25

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or dates upon which the relevant cancellation or prepayment is to be
 made and the amount of that cancellation or prepayment.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9.2

 	
  

 	
 Any prepayment under this Agreement shall be made together with
 accrued interest on the amount prepaid and, subject to any Break Costs,
 without premium or penalty save that, in the event of a voluntary prepayment
 of all or any part of the Loan (other than prepayment under clauses 7.4 (Fixed Rate
 Differential Amount Prepayment), 7.5.4 (Right of Cancellation in relation to
 a single Lender) and 7.6 (Total Loss)) is made prior to the third
 anniversary from the first Utilisation, a prepayment fee of 1% of the amount
 prepaid shall be paid at the time of such prepayment. The Borrower hereby
 acknowledges that the prepayment fee payable under this clause 7.9 is a genuine
 pre-estimate of the losses that would be incurred by the Lenders in these
 circumstances. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9.3

 	
  

 	
 The Borrower may not reborrow any part of the Facility which is
 prepaid.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9.4

 	
  

 	
 The Borrower shall not repay or prepay all or any part of the Loan or
 cancel all or any part of the Commitments except at the times and in the
 manner expressly provided for in this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9.5

 	
  

 	
 No amount of the Total Commitments cancelled under this Agreement may
 be subsequently reinstated.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9.6

 	
  

 	
 If the Agent receives a notice under this clause 7 it shall
 promptly forward a copy of that notice to either the Borrower or the affected
 Lender, as appropriate.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.9.7

 	
  

 	
 If the Total Commitments are partially reduced under this Agreement
 (other than under clause 7.1 (Illegality) and clause 7.5 (Right of
 cancellation and prepayment in relation to a single Lender)), the
 Commitments of the Lenders shall be reduced rateably.

 

26

SECTION
4 - COSTS OF UTILISATION

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
 Interest

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.1

 	
  

 	
 Calculation of interest

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The rate of interest on the Loan for each Interest Period is the
 percentage rate per annum which is the aggregate of the applicable:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 Margin; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 LIBOR; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 Mandatory Cost, if any.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.2

 	
  

 	
 Payment of interest

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay accrued interest on the Loan on the last day
 of each Interest Period (and, if the Interest Period is longer than three
 months, on the dates falling at three monthly intervals after the first day
 of the Interest Period).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.3

 	
  

 	
 Default interest

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.3.1

 	
  

 	
 If an Obligor fails to pay any amount payable by it under a Finance
 Document on its due date, interest shall accrue on the overdue amount from
 the due date up to the date of actual payment (both before and after
 judgment) at a rate which, subject to clause 8.3.2 below, is 2% higher than the
 rate which would have been payable if the overdue amount had, during the
 period of non-payment, constituted the Loan for successive Interest Periods,
 each of a duration selected by the Agent (acting reasonably). Any interest
 accruing in accordance with this clause 8.3 shall be immediately payable by the
 Obligor on demand by the Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.3.2

 	
  

 	
 If any overdue amount consists of all or part of the Loan which
 became due on a day which was not the last day of an Interest Period relating
 to the Loan or the relevant part of it:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the first Interest Period for that overdue amount shall have a
 duration equal to the unexpired portion of the current Interest Period
 relating to the Loan; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the rate of interest applying to the overdue amount during that first
 Interest Period shall be 2% higher than the rate which would have applied if
 the overdue amount had not become due.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.3.3

 	
  

 	
 Default interest (if unpaid) arising on an overdue amount will be
 compounded with the overdue amount at the end of each Interest Period
 applicable to that overdue amount but will remain immediately due and
 payable.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.4

 	
  

 	
 Notification of rates of interest

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall promptly notify the Lenders and the Borrower of the
 determination of a rate of interest under this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
 Interest Periods

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.1

 	
  

 	
 Selection of Interest Periods

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.1.1

 	
  

 	
 The Borrower may select an Interest Period for the first Advance and
 thereafter the balance of the Loan in the Utilisation Request for the first
 Advance or (if the Loan has already been borrowed) in a Selection Notice.

 

27

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.1.2

 	
  

 	
 Each Selection Notice is irrevocable and must be delivered to the
 Agent by the Borrower not later than 11:00 a.m. three Business Days before
 the last day of the then current Interest Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.1.3

 	
  

 	
 If the Borrower fails to deliver a Selection Notice to the Agent in
 accordance with clause 9.1.2, the relevant Interest Period will subject to clause
 9.2 (Interest
 Periods overrunning Repayment Dates), be three months.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.1.4

 	
  

 	
 Subject to this clause 9, the Borrower may select an Interest Period
 of one, three or six months or any other period agreed between the Borrower
 and the Agent on the instructions of all the Lenders, provided that the
 Borrower may not select more than two one month Interest Periods in any one
 calendar year.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.1.5

 	
  

 	
 No Interest Period shall extend beyond the Final Repayment Date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.1.6

 	
  

 	
 The first Interest Period for the Loan shall start on the first
 Utilisation Date, the first Interest Period for the second or any later
 Advance shall start on the relevant Utilisation Date and end on the last day
 of the then current Interest Period for the balance of the Loan and each
 subsequent Interest Period for the Loan shall start on the last day of its
 preceding Interest Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.2

 	
  

 	
 Interest Periods overrunning Repayment
 Dates

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Borrower selects an Interest Period which would overrun any
 later Repayment Date, the Loan shall be divided into parts corresponding to
 the amounts by which the Total Commitments are scheduled to be reduced under
 clause 6.2 (Scheduled
 repayment of Facility) on each of the Repayment Dates falling
 during such Interest Period (each of which shall have a separate Interest
 Period ending on the relevant Repayment Date) and to the balance of the Loan
 (which shall have the Interest Period selected by the Borrower).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.3

 	
  

 	
 Non-Business Days

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If an Interest Period would otherwise end on a day which is not a
 Business Day, that Interest Period will instead end on the next Business Day
 in that calendar month (if there is one) or the preceding Business Day (if
 there is not).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10

 	
  

 	
 Changes to the
 calculation of interest

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.1

 	
  

 	
 Absence of quotations

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to clause 10.2 (Market disruption), if LIBOR is to be
 determined by reference to the Reference Banks but a Reference Bank does not
 supply a quotation by 11:00 a.m. on the Quotation Day, the applicable LIBOR
 shall be determined on the basis of the quotations of the remaining Reference
 Banks.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.2

 	
  

 	
 Market disruption

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.2.1

 	
  

 	
 If a Market Disruption Event occurs in relation to the Loan for any
 Interest Period, then the rate of interest on each Lender’s share of the Loan
 for the Interest Period shall be the rate per annum which is the sum of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the Margin; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the rate notified to the Agent by that Lender as soon as practicable
 and in any event before interest is due to be paid in respect of that
 Interest Period, to be that which expresses as a percentage rate per annum
 the cost to that Lender of funding its participation in the Loan from
 whatever source it may reasonably select; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the Mandatory Cost, if any, applicable to that Lender’s participation
 in the Loan.

 

28

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.2.2

 	
  

 	
 In this Agreement “Market Disruption Event” means that:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 at or about noon on the Quotation Day for the relevant Interest
 Period the Screen Rate is not available and none or only one of the Reference
 Banks supplies a rate to the Agent to determine LIBOR for the relevant
 Interest Period; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 before close of business in London on the Quotation Day for the
 relevant Interest Period, the Agent receives notifications from a Lender or
 Lenders (whose participations in the Loan exceed 30% of the Loan) that the cost to it
 of obtaining matching deposits in the Interbank Market would be in excess of
 LIBOR.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.3

 	
  

 	
 Alternative basis of interest or funding

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.3.1

 	
  

 	
 If a Market Disruption Event occurs and the Agent or the Borrower so
 requires, the Agent and the Borrower shall enter into negotiations (for a
 period of not more than 30 days) with a view to agreeing a substitute basis
 for determining the rate of interest.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.3.2

 	
  

 	
 Any alternative basis agreed pursuant to clause 10.3.1 above shall, with
 the prior consent of all the Lenders be binding on all Parties.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.4

 	
  

 	
 Break Costs

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.4.1

 	
  

 	
 The Borrower shall, within three Business Days of demand by a Finance
 Party, pay to that Finance Party its Break Costs attributable to all or any
 part of the Loan or Unpaid Sum being paid by the Borrower on a day other than
 the last day of an Interest Period for the Loan or Unpaid Sum or relevant
 part of it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.4.2

 	
  

 	
 Each Lender shall, as soon as reasonably practicable after a demand
 by the Agent, provide a certificate confirming the amount of its Break Costs
 for any Interest Period in which they accrue.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11

 	
  

 	
 Fees

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11.1

 	
  

 	
 Commitment commission

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11.1.1

 	
  

 	
 The Borrower shall pay to the Agent (for the account of each Lender)
 a fee in dollars computed at the rate of 1.1% per annum on the undrawn
 portion of that Lender’s Commitment calculated from the date of this
 Agreement (the “start date”).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11.1.2

 	
  

 	
 The Borrower shall pay the accrued commitment commission on the last
 day of the period of three months commencing on the start date, on the last
 day of each successive period of three months, on the Final Repayment Date
 and, if cancelled in full, on the cancelled amount of the relevant Lender’s
 Commitment at the time the cancellation is effective.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11.2

 	
  

 	
 Arrangement fee

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay to the Agent (for the distribution to the
 Lenders) an arrangement fee in the amount and at the times agreed in a Fee
 Letter.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11.3

 	
  

 	
 Agency fee

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay to the Agent (for its own account) an agency
 fee in the amount and at the times agreed in a Fee Letter.

 

29

SECTION 5 - ADDITIONAL PAYMENT
OBLIGATIONS

	
  

 	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 Tax gross-up and indemnities

 
	
  

 	
  

 	
  

 	
  

 
	
 12.1

 	
  

 	
 Definitions

 
	
  

 	
  

 	
  

 	
  

 
	
 12.1.1

 	
  

 	
 In this Agreement:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Protected
 Party
 means a Finance Party which is or will be subject to any liability, or
 required to make any payment, for or on account of Tax in relation to a sum
 received or receivable (or any sum deemed for the purposes of Tax to be
 received or receivable) under a Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tax Deduction means a deduction or withholding
 for or on account of Tax from a payment under a Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tax Payment means either the increase in a
 payment made by an Obligor to a Finance Party under clause 12.2 (Tax
 gross-up) or a payment under clause 12.3 (Tax indemnity).

 
	
  

 	
  

 	
  

 	
  

 
	
 12.1.2

 	
  

 	
 Unless a contrary indication appears, in this clause 12 a
 reference to “determines” or determined means a determination made in the
 absolute discretion of the person making the determination.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.2

 	
  

 	
 Tax gross-up

 
	
  

 	
  

 	
  

 	
  

 
	
 12.2.1

 	
  

 	
 Each Obligor shall make all payments to be made by it under any
 Finance Document without any Tax Deduction, unless a Tax Deduction is
 required by law.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.2.2

 	
  

 	
 The Borrower shall, promptly upon becoming aware that an Obligor must
 make a Tax Deduction (or that there is any change in the rate or the basis of
 a Tax Deduction), notify the Agent accordingly. Similarly, a Lender shall
 notify the Agent on becoming so aware in respect of a payment payable to that
 Lender. If the Agent receives such notification from a Lender it shall notify
 the Borrower and that Obligor.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.2.3

 	
  

 	
 If a Tax Deduction is required by law to be made by an Obligor, the
 amount of the payment due from that Obligor under the relevant Finance
 Document shall be increased to an amount which (after making any Tax
 Deduction) leaves an amount equal to the payment which would have been due if
 no Tax Deduction had been required.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.2.4

 	
  

 	
 If an Obligor is required to make a Tax Deduction, that Obligor shall
 make that Tax Deduction and any payment required in connection with that Tax
 Deduction within the time allowed and in the minimum amount required by law.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.2.5

 	
  

 	
 Within 30 days of making either a Tax Deduction or any payment
 required in connection with that Tax Deduction, the Obligor making that Tax
 Deduction shall deliver to the Agent for the Finance Party entitled to the
 payment evidence reasonably satisfactory to that Finance Party that the Tax
 Deduction has been made or (as applicable) any appropriate payment paid to
 the relevant taxing authority.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.3

 	
  

 	
 Tax indemnity

 
	
  

 	
  

 	
  

 	
  

 
	
 12.3.1

 	
  

 	
 The Borrower shall (within three Business Days of demand by the
 Agent) pay to a Protected Party an amount equal to the loss, liability or
 cost which that Protected Party determines will be or has been (directly or
 indirectly) suffered for or on account of Tax by that Protected Party in
 respect of a Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.3.2

 	
  

 	
 Clause 12.3.1 above shall not apply:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 with respect to
 any Tax assessed on a Finance Party:

 

30

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 under the law of the jurisdiction in which that Finance Party is
 incorporated or, if different, the jurisdiction (or jurisdictions) in which
 that Finance Party is treated as resident for tax purposes; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 under the law of the jurisdiction in which that Finance Party’s
 Facility Office is located in respect of amounts received or receivable in
 that jurisdiction,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 if that Tax is imposed on or calculated by reference to the overall
 net income received or receivable (but not any sum deemed to be received or
 receivable) by that Finance Party; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to the extent a loss, liability or cost is compensated for by an
 increased payment under clause 12.2 (Tax gross-up).

 

	
  

 	
  

 	
  

 
	
 12.3.3

 	
  

 	
 A Protected Party making, or intending to make a claim under clause
 12.3.1 above shall promptly notify the Agent of the event which will give, or
 has given, rise to the claim, following which the Agent shall notify the
 Borrower.

 
	
  

 	
  

 	
  

 
	
 12.3.4

 	
  

 	
 A Protected Party shall, on receiving a payment from an Obligor under
 this clause 12.3, notify the Agent.

 
	
  

 	
  

 	
  

 
	
 12.4

 	
  

 	
 Stamp taxes

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay and, within three Business Days of demand,
 indemnify each Finance Party against any cost, loss or liability that Finance
 Party incurs in relation to all stamp duty, registration and other similar
 Taxes payable in respect of any Finance Document.

 
	
  

 	
  

 	
  

 
	
 12.5

 	
  

 	
 Value added tax

 
	
  

 	
  

 	
  

 
	
 12.5.1

 	
  

 	
 All amounts set out, or expressed to be payable under a Finance
 Document by any party to a Finance Party which (in whole or in part)
 constitute the consideration for VAT purposes shall be deemed to be exclusive
 of any VAT which is chargeable on such supply, and accordingly, subject to
 clause 12.5.3 below, if VAT is charged on any supply made by any Finance
 Party to any party under a Finance Document, that party shall pay to the Finance
 Party (in addition to and at the same time as paying the consideration) an
 amount equal to the amount of the VAT (and such Finance Party shall promptly
 provide an appropriate VAT invoice to such party).

 
	
  

 	
  

 	
  

 
	
 12.5.2

 	
  

 	
 If VAT is charged on any supply made by any Finance Party (the Supplier)
 to any other Finance Party (the Recipient) under a Finance Document, and
 any party to a Finance Document (the Relevant Party) is required by the terms
 of any Finance Document to pay an amount equal to the consideration for such
 supply to the Supplier (rather than being required to reimburse the Recipient
 in respect of that consideration), the Relevant Party shall also pay to the
 Supplier (in addition to and at the same time as paying such amount) an
 amount equal to the amount of such VAT. The Recipient will promptly pay to
 the Relevant Party an amount equal to any credit or repayment from the
 relevant tax authority which it reasonably determines relates to the VAT
 charged on that supply.

 
	
  

 	
  

 	
  

 
	
 12.5.3

 	
  

 	
 Where a Finance Document requires any party to it to reimburse a
 Finance Party for any costs or expenses, that party shall also at the same
 time pay and indemnify the Finance Party against all VAT incurred by the
 Finance Party in respect of the costs or expenses to the extent that the
 Finance Party reasonably determines that neither it nor any other member of
 any group of which it is a member for VAT purposes is entitled to credit or
 repayment of the VAT.

 
	
  

 	
  

 	
  

 
	
 13

 	
  

 	
 Increased Costs

 
	
  

 	
  

 	
  

 
	
 13.1 

 	
  

 	
 Increased Costs 

 
	
  

 	
  

 	
  

 
	
 13.1.1

 	
  

 	
 Subject to clause 13.3 (Exceptions), the Borrower shall, within
 three Business Days of a demand by the Agent, pay for the account of a
 Finance Party the amount of any Increased Costs incurred by that Finance
 Party or any of its Affiliates as a result of (a) the introduction of 

 

31

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or any change in (or in the interpretation, administration or
 application of) any law or regulation or (b) compliance with any law or
 regulation in either case made after the date of this Agreement.

 
	
  

 	
  

 	
  

 
	
 13.1.2

 	
  

 	
 In this Agreement Increased
 Costs means:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 a reduction in the rate of return from the Facility or on a Finance
 Party’s (or its Affiliate’s) overall capital;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 an additional or
 increased cost; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 a reduction of any
 amount due and payable under any Finance Document,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 which is incurred or suffered by a Finance Party or any of its
 Affiliates to the extent that it is attributable to that Finance Party having
 entered into its Commitment or funding or performing its obligations under any
 Finance Document.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.2

 	
  

 	
 Increased
 Cost claims

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.2.1

 	
  

 	
 A Finance Party intending to make a claim pursuant to clause 13.1 (Increased
 costs) shall notify the Agent of the event giving rise to the
 claim, following which the Agent shall promptly notify the Borrower.

 
	
  

 	
  

 	
  

 
	
 13.2.2

 	
  

 	
 Each Finance Party shall, as soon as practicable after a demand by
 the Agent, provide a certificate confirming the amount of its Increased
 Costs.

 
	
  

 	
  

 	
  

 
	
 13.3

 	
  

 	
 Exceptions

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.3.1

 	
  

 	
 Clause 13.1 (Increased
 Costs) does not apply to the extent any Increased Cost is:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 attributable to a
 Tax Deduction required by law to be made by an Obligor;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 compensated for by clause 12.3 (Tax indemnity) (or would have been
 compensated for under clause 12.3 (Tax indemnity) but was not so
 compensated solely because any of the exclusions in clause 12.3.2 applied);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 compensated for by
 the payment of the Mandatory Cost; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 attributable to
 the wilful breach by the relevant Finance Party or its Affiliates of any law
 or regulation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.3.2

 	
  

 	
 In this clause 13.3, a reference to a Tax Deduction has the same
 meaning given to the term in clause 12.1 (Definitions).

 
	
  

 	
  

 	
  

 
	
 14

 	
  

 	
 Other
 indemnities

 
	
  

 	
  

 	
  

 
	
 14.1

 	
  

 	
 Currency
 indemnity

 
	
  

 	
  

 	
  

 
	
 14.1.1

 	
  

 	
 If any sum due from an Obligor under the Finance Documents (a Sum),
 or any order, judgment or award given or made in relation to a Sum, has to be
 converted from the currency (the First Currency) in which that Sum is
 payable into another currency (the Second Currency) for the purpose of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 making or filing a
 claim or proof against that Obligor; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 obtaining or enforcing an order, judgment or award in relation to any
 litigation or arbitration proceedings,

 

32

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 that Obligor shall, as an independent obligation, within three
 Business Days of demand by a Finance Party, indemnify each Finance Party to
 whom that Sum is due against any cost, loss or liability arising out of or as
 a result of the conversion including any discrepancy between (i) the rate of
 exchange used to convert that Sum from the First Currency into the Second
 Currency and (ii) the rate or rates of exchange available to that person at
 the time of its receipt of that Sum.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1.2

 	
  

 	
 Each Obligor waives any right it may have in any jurisdiction to pay
 any amount under the Finance Documents in a currency or currency unit other
 than that in which it is expressed to be payable.

 
	
  

 	
  

 	
  

 
	
 14.2

 	
  

 	
 Other
 indemnities

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall (or shall procure that another Obligor will), within
 three Business Days of demand by a Finance Party, indemnify each Finance
 Party against any cost, loss or liability incurred by that Finance Party as a
 result of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the occurrence of
 any Event of Default;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 a failure by an
 Obligor to pay any amount due under a Finance Document on its due date,
 including without limitation, any cost, loss or liability arising as a result
 of clause 33 (Sharing among the Finance Parties); 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 funding, or making
 arrangements to fund, its participation in the Loan requested by the Borrower
 in a Utilisation Request but not made by reason of the operation of any one
 or more of the provisions of this Agreement (other than by reason of default
 or negligence by that Finance Party) alone; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 the Loan (or part
 of the Loan) not being prepaid in accordance with a notice of prepayment
 given by the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.3

 	
  

 	
 Indemnity
 to the Agent and the Security Agent

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall promptly indemnify the Agent and the Security
 Agent against
 any cost, loss or liability incurred by the Agent (acting reasonably) as a
 result of 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 investigating any
 event which it reasonably believes is a Default;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 acting or relying on any notice, request or instruction which it reasonably
 believes to be genuine, correct and appropriately authorised; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any action taken by the Agent or any of its representatives, agents
 or contractors in connection with any powers conferred by any Security
 Document to remedy any breach of any Obligor’s obligations under the Finance
 Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.4

 	
  

 	
 Indemnity
 concerning security

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.4.1

 	
  

 	
 The Borrower shall (or shall procure that another Obligor will)
 promptly indemnify each Indemnified Person against any cost, expense, loss or
 liability incurred by it in connection with:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the taking,
 holding, protection or enforcement of the Security Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the exercise or purported exercise of any of the rights, powers,
 discretions and remedies vested in the Security Agent and each Receiver by
 the Finance Documents or by law unless and to the extent that it was caused
 by its gross negligence or wilful misconduct;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any claim (whether relating to the environment or otherwise) made or
 asserted against the Indemnified Person which would not have arisen but for
 the execution or  

 

33

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 enforcement of one or more Finance Documents (unless and to the extent it is
 caused by the gross negligence or wilful misconduct of that Indemnified
 Person); or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 any breach by any
 Obligor of the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.4.2

 	
  

 	
 The Security Agent may, in priority to any payment to the other
 Finance Parties, indemnify itself out of the Trust Property in respect of,
 and pay and retain, all sums necessary to give effect to the indemnity in
 this clause 14.4 and shall have a lien on the Security Documents and the
 proceeds of the enforcement of the Security Documents for all monies payable
 to it.

 
	
  

 	
  

 	
  

 
	
 14.5

 	
  

 	
 Exclusion
 of liability

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Indemnified Person will be in any way liable or responsible to any
 Obligor (whether as mortgagee in possession or otherwise) who is a Party or
 is a party to a Finance Document to which this clause applies for any loss or
 liability arising from any act, default, omission or misconduct of that
 Indemnified Person, except to the extent caused by its own gross negligence
 or wilful misconduct. Any Indemnified Person may rely on this clause 14.5
 subject to clause 1.3 (Third party rights) and the provisions
 of Third Parties Act.

 
	
  

 	
  

 	
  

 
	
 14.6

 	
  

 	
 Fax
 and email indemnity

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall indemnify each Finance Party against any cost,
 claim, loss, expense or liability together with any VAT thereon which any of
 the Finance Parties may sustain or incur as a consequence of any fax or email
 communication purporting to originate from the Borrower to the Agent or the
 Security Agent being made or delivered fraudulently or without proper
 authorisation (unless such cost, claim, loss, expense or liability is the
 direct result of the gross negligence or wilful misconduct of the relevant
 Finance Party or the Agent or the Security Agent).

 
	
  

 	
  

 	
  

 
	
 15

 	
  

 	
 Mitigation
 by the Lenders

 
	
  

 	
  

 	
  

 
	
 15.1

 	
  

 	
 Mitigation

 
	
  

 	
  

 	
  

 
	
 15.1.1

 	
  

 	
 Each Finance Party shall, in consultation with the Borrower, take all
 reasonable steps to mitigate any circumstances which arise and which would
 result in any amount becoming payable under or pursuant to, or cancelled
 pursuant to, any of clause 7.1 (Illegality), clause 12 (Tax
 gross-up and indemnities), clause 13 (Increased costs) or
 paragraph 3 of Schedule 6 (Mandatory Cost formulae) including (but
 not limited to) transferring its rights and obligations under the Finance
 Documents to another Affiliate or Facility Office.

 
	
  

 	
  

 	
  

 
	
 15.1.2

 	
  

 	
 Clause 15.1.1 does
 not in any way limit the obligations of any Obligor under the Finance
 Documents.

 
	
  

 	
  

 	
  

 
	
 15.2

 	
  

 	
 Limitation
 of liability

 
	
  

 	
  

 	
  

 
	
 15.2.1

 	
  

 	
 The Borrower shall promptly indemnify each Finance Party for all
 costs and expenses incurred by that Finance Party as a result of steps taken
 by it under clause 15.1 (Mitigation).

 
	
  

 	
  

 	
  

 
	
 15.2.2

 	
  

 	
 A Finance Party is not obliged to take any steps under clause 15.1 (Mitigation)
 if, in the opinion of that Finance Party (acting reasonably), to do so might
 be prejudicial to it.

 
	
  

 	
  

 	
  

 
	
 16

 	
  

 	
 Costs
 and expenses

 
	
  

 	
  

 	
  

 
	
 16.1

 	
  

 	
 Transaction
 expenses

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall promptly within five Business Days of demand pay
 the Agent and the Arrangers and the Security Agent the amount of all costs
 and expenses (including fees, costs and expenses of legal advisers and,
 subject to clause 23.17, insurance and other consultants and advisers)
 reasonably incurred by any of them (and by any Receiver) in connection with
 the 

 

34

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 negotiation, preparation, printing, execution, syndication,
 registration and perfection and any release, discharge or reassignment of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 this Agreement and any other documents referred to in this Agreement
 and the Original Security Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any other Finance Documents executed or proposed to be executed after
 the date of this Agreement including any executed to provide additional
 security under clause 24 (Minimum security value);or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any Security Interest expressed or intended to be granted by a
 Finance Document.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.2

 	
  

 	
 Amendment costs

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If an Obligor requests an amendment, waiver or consent, the Borrower
 shall, within five Business Days of demand by the Agent, reimburse the Agent
 for the amount of all costs and expenses (including fees, costs and expenses
 of legal advisers and insurance and other consultants and advisers) reasonably
 incurred by the Agent and the Security Agent (and by any Receiver) in
 responding to, evaluating, negotiating or complying with that request or
 requirement.

 
	
  

 	
  

 	
  

 
	
 16.3

 	
  

 	
 Enforcement and preservation costs

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall within five Business Days of demand by a Finance
 Party, pay to each Finance Party the amount of all costs and expenses
 (including fees, costs and expenses of legal advisers and insurance and other
 consultants and advisers) reasonably incurred by that Finance Party in
 connection with the enforcement of, or the preservation of any rights under,
 any Finance Document and any proceedings initiated by or against any
 Indemnified Person and as a consequence of holding the Charged Property or
 enforcing those rights.

 

35

SECTION 6 - REPRESENTATIONS,
UNDERTAKINGS AND EVENTS OF DEFAULT

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17

 	
  

 	
 Representations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower makes and repeats the representations and warranties set
 out in this clause 17 to each Finance Party at the times specified in
 clause 17.30 (Times when representations are made).

 
	
  

 	
  

 	
  

 
	
 17.1

 	
  

 	
 Status

 
	
  

 	
  

 	
  

 
	
 17.1.1

 	
  

 	
 Each Obligor and the Manager is duly incorporated and validly
 existing under the laws of the jurisdiction of its incorporation as a limited
 liability company or corporation and has no centre of main interests, permanent
 establishment or place of business outside the jurisdiction in which it is
 incorporated (save as notified to the Agent) and is in compliance with its
 Constitutional Documents.

 
	
  

 	
  

 	
  

 
	
 17.1.2

 	
  

 	
 Each Obligor and the Manager has power and authority to carry on its
 business as it is now being conducted and to own its property and other
 assets.

 
	
  

 	
  

 	
  

 
	
 17.2

 	
  

 	
 Binding
 obligations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to the Legal Reservations, the obligations expressed to be
 assumed by each Obligor in each Finance Document, Charter Document or
 Building Contract Document to which it is, or is to be, a party are or, when
 entered into by it, will be legal, valid, binding and enforceable obligations
 and each Security Document to which an Obligor is, or will be, a party,
 creates or will create the Security Interests which that Security Document
 purports to create and those Security Interests are or will be valid and
 effective.

 
	
  

 	
  

 	
  

 
	
 17.3

 	
  

 	
 Power
 and authority

 
	
  

 	
  

 	
  

 
	
 17.3.1

 	
  

 	
 Each Obligor has, or will have when entered into by it, power to
 enter into, perform and deliver and comply with its obligations under, and
 has taken, or will take when entered into by it, all necessary action to
 authorise its entry into, each Finance Document, Charter Document or Building
 Contract Document to which it is or will be a party.

 
	
  

 	
  

 	
  

 
	
 17.3.2

 	
  

 	
 No limitation on any Obligor’s powers to borrow, create security or
 give guarantees will be exceeded as a result of any transaction under, or the
 entry into of, any Finance Document, Charter Document or Building Contract
 Document to which such Obligor is, or is to be, a party, with effect on and
 from the date of the relevant Finance Document.

 
	
  

 	
  

 	
  

 
	
 17.4

 	
  

 	
 Non-conflict

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The entry into and performance by each Obligor and the Manager of,
 and the transactions contemplated by the Finance Documents, the Charter
 Documents and the Building Contract Documents and the granting of the
 Security Interests purported to be created by the Security Documents do not
 and will not conflict with:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any law or
 regulation applicable to any Obligor or the Manager;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the Constitutional
 Documents of any Obligor or the Manager; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any agreement or other instrument binding upon any Obligor or the
 Manager or its assets or constitute a default or termination event (however
 described) under any such agreement or instrument, or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 result in the creation of any Security Interest (save for a Permitted
 Maritime Lien or under a Security Document) on such Obligor’s (or the
 Manager’s) assets, rights or revenues.

 

36

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.5

 	
  

 	
 Validity
 and admissibility in evidence

 
	
  

 	
  

 	
  

 
	
 17.5.1

 	
  

 	
 All authorisations
 required or desirable:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 to enable each Obligor lawfully to enter into, exercise its rights
 and comply with its obligations under each Finance Document and any Charter
 Document or Building Contract Document to which it is a party;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 to make each Finance Document and any Charter Document or Building
 Contract Document to which it is a party admissible in evidence in its
 Relevant Jurisdiction; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 to ensure that each of the Security Interests created under the
 Security Documents has the priority and ranking contemplated by them,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 have been obtained or effected, or as the case may be will be
 obtained or effected when entered into, and are, or as the case may be will
 be when entered into, in full force and effect except any authorisation or
 filing referred to in clause 17.12 (No filing or stamp taxes), which
 authorisation or filing will be promptly obtained or effected within any
 applicable period.

 
	
  

 	
  

 	
  

 
	
 17.5.2

 	
  

 	
 All authorisations necessary for the conduct of the business, trade
 and ordinary activities of each Obligor and the Manager have been obtained or
 effected and are in full force and effect if failure to obtain or effect
 those authorisations might have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.6

 	
  

 	
 Governing law and enforcement

 
	
  

 	
  

 	
  

 
	
 17.6.1

 	
  

 	
 The choice of governing law as provided in any Finance Document and
 any Charter Document or Building Contract Document will be recognised and
 enforced in each Obligor’s Relevant Jurisdiction.

 
	
  

 	
  

 	
  

 
	
 17.6.2

 	
  

 	
 Any judgment obtained in England in relation to an Obligor will be
 recognised and enforced in each Obligor’s Relevant Jurisdictions.

 
	
  

 	
  

 	
  

 
	
 17.7

 	
  

 	
 Information

 
	
  

 	
  

 	
  

 
	
 17.7.1

 	
  

 	
 Any Information is true and accurate in all material respects at the
 time it was given or made.

 
	
  

 	
  

 	
  

 
	
 17.7.2

 	
  

 	
 Any Information contained in the Counter Guarantor Representations
 Letter is true and accurate in all material aspects at the time that the
 Repeating Representations are repeated and the words “existing ship
 financings” in the Counter Guarantor Representations Letter shall be deemed
 to mean such ship financings as exist at the time that any Repeated
 Representations are repeated in accordance with clause 17.30 (Times when
 representations are made).

 
	
  

 	
  

 	
  

 
	
 17.7.3

 	
  

 	
 There are no facts or circumstances or any other information which
 could make the Information incomplete, untrue, inaccurate or misleading in
 any material respect.

 
	
  

 	
  

 	
  

 
	
 17.7.4

 	
  

 	
 The Information does not omit anything which could make the Information
 incomplete, untrue, inaccurate or misleading in any material respect.

 
	
  

 	
  

 	
  

 
	
 17.7.5

 	
  

 	
 All opinions, projections, forecasts or expressions of intention
 contained in the Information and the assumptions on which they are based have
 been arrived at after due and careful enquiry and consideration and were
 believed to be reasonable by the person who provided that Information as at
 the date it was given or made.

 
	
  

 	
  

 	
  

 
	
 17.7.6

 	
  

 	
 For the purposes of this clause 17.7, “Information” means: any
 information provided by any Obligor or the Counter Guarantor Subsidiary to
 any of the Finance Parties in connection with the Finance Documents, Charter
 Documents or Building Contract Documents or the transactions referred to in
 them including that contained in the Counter Guarantor Representations
 Letter.

 

37

	
  

 	
  

 	
  

 
	
 17.8

 	
  

 	
 Original Financial Statements

 
	
  

 	
  

 	
  

 
	
 17.8.1

 	
  

 	
 The Original Financial Statements were prepared in accordance with
 GAAP consistently applied.

 
	
  

 	
  

 	
  

 
	
 17.8.2

 	
  

 	
 The audited Original Financial Statements give a true and fair view
 of the financial condition and results of operations of the relevant Obligors
 and the relevant Group (consolidated in the case of such Group) during the
 relevant financial year.

 
	
  

 	
  

 	
  

 
	
 17.8.3

 	
  

 	
 There has been no material adverse change in its assets, business or
 financial condition (or the assets, business or consolidated financial
 condition of any of the Obligors or any Group) since the date of the Original
 Financial Statements.

 
	
  

 	
  

 	
  

 
	
 17.9

 	
  

 	
 Pari passu ranking

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor’s payment obligations under the Finance Documents rank
 at least pari passu with all its other present and future unsecured and
 unsubordinated payment obligations, except for obligations mandatorily
 preferred by law applying to companies generally.

 
	
  

 	
  

 	
  

 
	
 17.10

 	
  

 	
 Ranking and effectiveness of security

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to the Legal Reservations and any filing, registration or
 notice requirements which is referred to in any legal opinion delivered to
 the Agent under clause 4.1 (Conditions precedent before delivery),
 the security created by the Security Documents has (or will have when the
 Security Documents have been executed) the priority which it is expressed to
 have in the Security Documents, the Charged Property is not subject to any
 Security Interest other than Permitted Security Interests and such security
 will constitute perfected security on the assets described in the Security
 Documents.

 
	
  

 	
  

 	
  

 
	
 17.11

 	
  

 	
 No insolvency

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No corporate action, legal proceeding or other procedure or step
 described in clause 28.9 (Insolvency proceedings) or creditors’
 process described in clause 28.10 (Creditors’ process) has been taken or,
 to the knowledge of any Obligor or the Manager, threatened in relation to an
 Obligor or the Manager or a Subsidiary of an Obligor and none of the
 circumstances described in clause 28.8 (Insolvency) applies to an Obligor or the
 Manager or a Subsidiary of an Obligor or any Finance Document and any Charter
 Document or Building Contract Document to which it is, or is to be, party.

 
	
  

 	
  

 	
  

 
	
 17.12

 	
  

 	
 No filing or stamp taxes

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Under the laws of each Obligor’s Relevant Jurisdictions it is not
 necessary that any Finance Document and any Charter Document or Building
 Contract Document to which it is, or is to be, party be filed, recorded or
 enrolled with any court or other authority in that jurisdiction or that any
 stamp, registration, notarial or similar Taxes or fees be paid on or in
 relation to any such Finance Document and any Charter Document or Building
 Contract Document or the transactions contemplated by the Finance Documents
 except any filing, recording or enrolling or any tax or fee payable in
 relation to any Finance Document which is referred to in any legal opinion
 delivered to the Agent under clause 4.1 (Conditions precedent before delivery)
 and which will be made or paid promptly after the date of the relevant
 Finance Document.

 
	
  

 	
  

 	
  

 
	
 17.13

 	
  

 	
 Deduction of Tax

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor is required to make any deduction for or on account of Tax
 from any payment it may make under any Finance Document and no other party is
 required to make any such deduction from any payment it may make under any
 Charter Document or Building Contract Document.

 
	
  

 	
  

 	
  

 
	
 17.14

 	
  

 	
 No Default

 
	
  

 	
  

 	
  

 
	
 17.14.1

 	
  

 	
 No Default is continuing or is reasonably likely to result from the
 making of any Utilisation or the entry into, the performance of, or any
 transaction contemplated by, any Finance Document and 

 

38

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 any Charter Document or Building Contract Document and no breach has
 occurred by the Borrower of any Charter Documents or Building Contract
 Document.

 
	
  

 	
  

 	
  

 
	
 17.14.2

 	
  

 	
 No other event or circumstance is outstanding which constitutes (or,
 with the expiry of a grace period, the giving of notice, the making of any
 determination or any combination of any of the foregoing, would constitute) a
 default or termination event (however described) under any other agreement or
 instrument which is binding on any Obligor or the Manager or to which any
 Obligor’s or the Manager’s assets are subject which might have a Material
 Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.15

 	
  

 	
 No proceedings pending or threatened

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No litigation, arbitration or administrative proceedings or
 investigations of, or before, any court, arbitral body or agency which, if
 adversely determined, might reasonably be expected to have a Material Adverse
 Effect have (to the best of any Obligor’s or the Manager’s knowledge and
 belief) been started or threatened against any Obligor or the Manager or any
 Subsidiary of an Obligor.

 
	
  

 	
  

 	
  

 
	
 17.16

 	
  

 	
 No breach of laws

 
	
  

 	
  

 	
  

 
	
 17.16.1

 	
  

 	
 No Obligor nor the Manager or Subsidiary of an Obligor or the Manager
 has breached any law or regulation which might have a Material Adverse
 Effect.

 
	
  

 	
  

 	
  

 
	
 17.16.2

 	
  

 	
 No labour dispute is current or, to the best of any Obligor’s or the
 Manager’s knowledge and belief, threatened against any Obligor or the Manager
 or any Subsidiary of an Obligor which may have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.17

 	
  

 	
 Environmental matters

 
	
  

 	
  

 	
  

 
	
 17.17.1

 	
  

 	
 No Environmental Law applicable to any Fleet Vessel and/or any
 Obligor or the Manager or any Subsidiary of an Obligor has been violated in a
 manner or circumstances which might have, a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.17.2

 	
  

 	
 All consents, licences and approvals required under such
 Environmental Laws have been obtained and are currently in force.

 
	
  

 	
  

 	
  

 
	
 17.17.3

 	
  

 	
 No Environmental Claim has been made or threatened or is pending
 against any Obligor or any Subsidiary of an Obligor or any Fleet Vessel where
 that claim might have a Material Adverse Effect and there has been no
 Environmental Incident which has given, or might give, rise to such a claim.

 
	
  

 	
  

 	
  

 
	
 17.18

 	
  

 	
 Taxation

 
	
  

 	
  

 	
  

 
	
 17.18.1

 	
  

 	
 No Obligor or Subsidiary of an Obligor nor the Manager is materially
 overdue in the filing of any Tax returns or overdue in the payment of any
 amount in respect of Tax.

 
	
  

 	
  

 	
  

 
	
 17.18.2

 	
  

 	
 No claims or investigations are being, or are reasonably likely to
 be, made or conducted against any Obligor or the Manager or any Subsidiary of
 an Obligor with respect to Taxes such that a liability of, or claim against,
 any Obligor or the Manager or any Subsidiary of an Obligor is reasonably likely
 to arise for an amount for which adequate reserves have not been provided in
 the Original Financial Statements and which might have a Material Adverse
 Effect.

 
	
  

 	
  

 	
  

 
	
 17.18.3

 	
  

 	
 Except as advised to the Agent prior to the date of this Agreement,
 each Obligor and the Manager is resident for Tax purposes only in the
 jurisdiction of its incorporation.

 
	
  

 	
  

 	
  

 
	
 17.19

 	
  

 	
 Security and Financial Indebtedness

 
	
  

 	
  

 	
  

 
	
 17.19.1

 	
  

 	
 No Security Interest exists over all or any of the present or future
 assets of the Borrower or GasLog Carriers in breach of this Agreement, other
 than the Permitted Security Interests.

 

39

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.19.2

 	
  

 	
 Except from the Existing Loan Agreement, neither the Borrower nor
 GasLog Carriers has any other Financial Indebtedness outstanding in breach of
 this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.20

 	
  

 	
 Legal and beneficial ownership

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Both of the Borrower and GasLog Carriers is, or will be, when
 granted, the sole legal and beneficial owner of the respective assets over
 which it purports to grant a Security Interest under the Security Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.21

 	
  

 	
 Shares

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The shares of the Borrower are fully paid and not subject to any
 option to purchase or similar rights. The Constitutional Documents of the
 Borrower do not and could not restrict or inhibit any transfer of those
 shares on creation or enforcement of the Security Documents. There are no
 agreements in force which provide for the issue or allotment of, or grant any
 person the right to call for the issue or allotment of, any share or loan
 capital of the Borrower (including any option or right of pre-emption or
 conversion).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.22

 	
  

 	
 Accounting Reference Date

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The accounting reference date of each Obligor is the Accounting
 Reference Date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.23

 	
  

 	
 No adverse consequences

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.23.1

 	
  

 	
 It is not necessary under the laws of the Relevant Jurisdictions of
 any Obligor:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in order to enable any Finance Party to enforce its rights under any
 Finance Document; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 by reason of the execution of any Finance Document or the performance
 by any Obligor of its obligations under any Finance Document,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 that any Finance Party should be licensed, qualified or otherwise
 entitled to carry on business in any of such Relevant Jurisdictions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.23.2

 	
  

 	
 No Finance Party is or will be deemed to be resident, domiciled or
 carrying on business in any Relevant Jurisdiction by reason only of the
 execution, performance and/or enforcement of any Finance Document.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.24

 	
  

 	
 Copies of documents

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The copies of the Charter Documents, the Building Contract Documents
 and the Constitutional Documents of the Obligors delivered to the Agent under
 clause 4 (Conditions
 of Utilisation) will be true, complete and accurate copies of such
 documents and include all amendments and supplements to them as at the time
 of such delivery and no other agreements or arrangements exist between any of
 the parties to any Charter Document or Building Contract Document which would
 materially affect the transactions or arrangements contemplated by any
 Charter Document or Building Contract Document or modify or release the
 obligations of any party under that Charter Document or Building Contract
 Document.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.25

 	
  

 	
 No breach of any Building Contract Document
 or Charter Document

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower nor (so far as the Borrower is aware) any other person
 is in breach of any Charter Document or Building Contract Document to which
 it is a party nor has anything occurred which entitles or may entitle any
 party to any Charter Document or Building Contract Document to rescind or
 terminate it or decline to perform their obligations under it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.26

 	
  

 	
 No immunity

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor or any of its assets is immune to any legal action or
 proceeding.

 

40

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.27

 	
  

 	
 Ship
 status

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship will on
 the first day of the Mortgage Period be:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 registered provisionally in the name of the Borrower through the
 relevant Registry as a ship under the laws and flag of the relevant Flag
 State;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 operationally seaworthy and in every way fit for service;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 classed with the relevant Classification free of all requirements and
 recommendations of the relevant Classification Society; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 insured in the
 manner required by the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.28

 	
  

 	
 Ship’s
 employment

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall on
 the first day of the Mortgage Period:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 have been
 delivered, and accepted for service, under the Charter; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 be free of any
 charter commitment other than the Charter.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.29

 	
  

 	
 Address
 commission

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 There are no rebates, commissions or other payments in connection
 with the Building Contract or the Charter other than those referred to in it.

 
	
  

 	
  

 	
  

 
	
 17.30

 	
  

 	
 Other
 Finance Arrangements

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor (acting in any capacity whatsoever) has agreed to
 cross-default provisions as part of another loan or credit agreement entered
 into with a financier which are more beneficial to that financier than those
 provisions set out in clause 28.6 (Cross-Default) other than those
 mentioned in the Counter Guarantor Representations Letter.

 
	
  

 	
  

 	
  

 
	
 17.31

 	
  

 	
 Times
 when representations are made

 
	
  

 	
  

 	
  

 
	
 17.31.1

 	
  

 	
 All of the representations and warranties set out in this clause 17
 (other than Ship Representations) are deemed to be repeated on the dates of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 this Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the first
 Utilisation Request; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the first
 Utilisation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 17.31.2

 	
  

 	
 The Repeating Representations are deemed to be repeated on the dates
 of each subsequent Utilisation Request, the date of each Utilisation and the
 first day of each Interest Period.

 
	
  

 	
  

 	
  

 
	
 17.31.3

 	
  

 	
 All of the Ship Representations are deemed to be made and repeated on
 the first day of the Mortgage Period.

 
	
  

 	
  

 	
  

 
	
 17.31.4

 	
  

 	
 Each representation or warranty deemed to be made after the date of
 this Agreement shall be deemed to be made by reference to the facts and
 circumstances then existing at the date the representation or warranty is
 deemed to be made.

 
	
  

 	
  

 	
  

 
	
 18

 	
  

 	
 Information
 undertakings

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The undertakings
 in this clause 18 remain in force during the Facility Period.

 

41

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this
 clause 18:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Annual Financial Statements” means the financial statements
 for a financial year of each Group, the Borrower, each of the Guarantors,
 each of the Counter Guarantors and the Counter Guarantor Subsidiary delivered
 pursuant to clause 18.1.1.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Half-Yearly Financial Statements” means the financial
 statements for a financial half year to 30 June of the relevant year of a
 Group, the Borrower, each of the Guarantors, each of the Counter Guarantors
 and the Counter Guarantor Subsidiary delivered pursuant to clause 18.1.2.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.1

 	
  

 	
 Financial statements

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.1.1

 	
  

 	
 The Borrower shall supply to the Agent or, as the case may be, shall
 procure that the Agent is supplied with as soon as the same become available,
 but in any event within 150 days after the end of the relevant financial
 years:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the audited consolidated financial statements of each Group for that
 financial year; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the audited financial statements (consolidated if appropriate) of the
 Borrower, each of the Guarantors, each of the Counter Guarantors and the
 Counter Guarantor Subsidiary for that financial year (the first such
 financial statements in respect of Counter Guarantor B for the financial year
 ended 31 December 2010).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.1.2

 	
  

 	
 The Borrower shall supply to the Agent or, as the case may be, shall
 procure that the Agent is supplied with as soon as the same become available,
 but in any event within 90 days after the end of each half year of the
 relevant financial year the unaudited financial statements (consolidated if
 appropriate) of each Group, the Borrower, the Counter Guarantor Subsidiary,
 the Guarantors and the Counter Guarantors for that financial half year (the
 first such financial statements in respect of Counter Guarantor B being for
 the half year ended as of 30 June 2011) for that financial half-year.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.2

 	
  

 	
 Requirements as to financial
 statements

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.2.1

 	
  

 	
 The Borrower shall procure that each set of
 Annual Financial Statements and Half-Yearly Financial Statements includes a
 profit and loss account, a balance sheet and a cashflow statement and that,
 in addition each set of Annual Financial Statements shall be audited by the
 Auditors.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.2.2

 	
  

 	
 Each set of financial statements delivered pursuant to clause 18.1 (Financial
 statements) shall:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 be prepared in accordance with GAAP;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 give a true and fair view of (in the case of Annual Financial
 Statements for any financial year), or fairly represent (in other cases), the
 financial condition and operations of the relevant Group or (as the case may
 be) relevant Obligor or (as the case may be) the Counter Guarantor Subsidiary
 as at the date as at which those financial statements were drawn up; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 in the case of annual audited financial statements, not be the
 subject of any qualification in the Auditors’ opinion.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.2.3

 	
  

 	
 The Borrower shall procure that each set of
 financial statements delivered pursuant to clause 18.1 (Financial statements)
 shall be prepared using GAAP, accounting practices and financial reference
 periods consistent with those applied in the preparation of the Original
 Financial Statements, unless, in relation to any set of financial statements,
 the Borrower notifies the Agent that there has been a change in GAAP or the
 accounting practices and the Auditors deliver to the Agent:

 

42

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 a description of any change necessary for those financial statements
 to reflect the GAAP or accounting practices and reference periods upon which
 corresponding Original Financial Statements were prepared; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 sufficient information, in form and substance as may be reasonably
 required by the Agent, to enable the Lenders to determine whether
 clause 5 of each of the Counter Guarantees (Financial covenants) and
 clause 5 of the GasLog Guarantee (Financial Covenants) has been complied
 with and to make an accurate comparison between the financial position
 indicated in those financial statements and the Original Financial
 Statements.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any reference in this Agreement to any financial statements shall be
 construed as a reference to those financial statements as adjusted to reflect
 the basis upon which the Original Financial Statements were prepared.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.3

 	
  

 	
 Presentations

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Once in every financial year, or more frequently if requested to do
 so by the Agent if the Agent reasonably suspects a Default is continuing or
 may have occurred or may occur, the Borrower shall procure that one director
 of each of the Counter Guarantors give a presentation to the Finance Parties
 about the on-going business and financial performance of the relevant Group
 and any other matter which a Finance Party may reasonably request.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.4

 	
  

 	
 Year-end

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.4.1

 	
  

 	
 The Borrower shall procure that each financial year-end for each
 Obligor falls on the Accounting Reference Date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.4.2

 	
  

 	
 The Borrower shall procure that each accounting period ends on an
 accounting date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.5

 	
  

 	
 Information: miscellaneous

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall supply to the Agent:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 at the same time as they are dispatched, copies of all material
 documents dispatched by any Obligor to its creditors generally (or any class
 of them);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 promptly upon becoming aware of them, the details of any litigation,
 arbitration or administrative proceedings which are current, threatened or
 pending against any Obligor or the Manager (subject always to any written
 confidentiality undertakings granted by the Manager to third parties from
 time to time) and which, if adversely determined, might have a Material
 Adverse Effect;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 promptly, such information as the Agent may reasonably require about
 the Charged Property and compliance of the Obligors with the terms of any
 Security Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 promptly on request, such further information regarding the financial
 condition, assets and operations of the Obligors as any Finance Party through
 the Agent may reasonably request; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 promptly, any requests made by the Charterer under clause 19 of the
 Charter.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.6

 	
  

 	
 Notification of Default

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall notify the Agent of any Default (and the steps, if
 any, being taken to remedy it) promptly upon the Borrower becoming aware of
 its occurrence (unless it is aware that a notification has already been
 provided by another Obligor).

 

43

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 18.7

 	
  

 	
 Sufficient copies

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower, if so requested by the Agent, shall supply sufficient
 copies of each document to be supplied under the Finance Documents to the
 Agent to distribute to each of the Lenders.

 
	
  

 	
  

 	
  

 
	
 18.8

 	
  

 	
  “Know your customer” checks

 
	
  

 	
  

 	
  

 
	
 18.8.1

 	
  

 	
 If:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the introduction of or any change in (or in the interpretation,
 administration or application of) any law or regulation made after the date
 of this Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any change in the status of an Obligor or the composition of the
 shareholders of an Obligor after the date of this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 a proposed assignment or transfer by a Lender of any of its rights
 and/or obligations under this Agreement to a party that is not a Lender prior
 to such assignment or transfer,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 obliges the Agent or any Lender (or, in the case of
 paragraph (c) above, any prospective new Lender) to comply with “know
 your customer” or similar identification procedures in circumstances where
 the necessary information is not already available to it, each Obligor shall
 promptly upon the request of the Agent or any Lender supply, or procure the
 supply of, such documentation and other evidence as is reasonably requested
 by the Agent (for itself or on behalf of any Lender) or any Lender (for
 itself or, in the case of the event described in paragraph (c) above, on
 behalf of any prospective new Lender) in order for the Agent, such Lender or,
 in the case of the event described in paragraph (c) above, any
 prospective new Lender to carry out and be satisfied with the results of all
 necessary “know your customer” or other similar checks under all applicable
 laws and regulations pursuant to the transactions contemplated in the Finance
 Documents.

 
	
  

 	
  

 	
  

 
	
 18.8.2

 	
  

 	
 Each Finance Party shall promptly upon the request of the Agent or
 the Security Agent supply, or procure the supply of, such documentation and
 other evidence as is reasonably requested by the Agent or the Security Agent
 (for itself) in order for it to carry out and be satisfied with the results
 of all necessary “know your customer” or other similar checks under all
 applicable laws and regulations pursuant to the transactions contemplated in
 the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 19

 	
  

 	
 General undertakings

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes or, as the case may be, shall procure that
 this clause 19 will be complied with throughout the Facility Period. 

 
	
  

 	
  

 	
  

 
	
 19.1

 	
  

 	
 Use of proceeds

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The proceeds of Utilisations will be used exclusively for the
 purposes specified in clause 3 (Purpose).

 
	
  

 	
  

 	
  

 
	
 19.2

 	
  

 	
 Authorisations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor will promptly (and in connection with any Finance
 Document, as soon as such Finance Document is entered into):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 obtain, comply with and do all that is necessary to maintain in full
 force and effect; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 supply certified copies to the Agent of,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 any authorisation required under any law or regulation of a Relevant
 Jurisdiction to:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (i)

 	
 enable it to perform its obligations under the Finance Documents and
 the Charter Documents or Building Contract Documents;

 

44

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (ii)

 	
 ensure the legality, validity,
 enforceability or admissibility in evidence of any Finance Document or
 Charter Document or Building Contract Document; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (iii)

 	
 carry on its business where failure to do
 so has, or is reasonably likely to have, a Material Adverse Effect.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.3

 	
  

 	
 Compliance with
 laws

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor, the Manager and the Counter
 Guarantor Subsidiary will comply in all respects with all laws and
 regulations (including Environmental Laws) to which it may be subject.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.4

 	
  

 	
 Taxation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.4.1

 	
  

 	
 Each Obligor, the Manager and the Counter
 Guarantor Subsidiary shall pay and discharge all Taxes imposed upon it or its
 assets within such time period as may be allowed by law without incurring
 penalties unless and only to the extent that:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 such payment is being contested in good
 faith;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 adequate reserves are being maintained for
 those Taxes and the costs required to contest them which have been disclosed
 in its latest financial statements delivered to the Agent under clause 18.1 (Financial statements); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 such payment can be lawfully withheld.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.4.2

 	
  

 	
 Except if there is an IPO or as otherwise
 approved by the Lenders, each Obligor shall maintain its residence for Tax
 purposes in the jurisdiction in which it is incorporated and ensure that it
 is not resident for Tax purposes in any other jurisdiction.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.5

 	
  

 	
 Change of business

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as approved, no substantial change
 will be made to the general nature of the business of the Counter Guarantor
 or the Obligors from that carried on at the date of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.6

 	
  

 	
 Merger

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except if there is an IPO or as otherwise
 approved, no Obligor will enter into any amalgamation, demerger, merger, consolidation
 or corporate reconstruction.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.7

 	
  

 	
 Other Finance
 Arrangements

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor (acting in any capacity
 whatsoever) will agree to cross-default provisions as part of another loan or
 credit agreement entered into with a financier which are more beneficial to
 that financier than those provisions set out in clause 28.6 (Cross-Default)
 other than those mentioned in the Counter Guarantor Representations Letter.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.8

 	
  

 	
 Further assurance

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.8.1

 	
  

 	
 Each Obligor shall promptly do all such
 acts or execute all such documents (including assignments, transfers,
 mortgages, charges, notices and instructions) as the Agent may reasonably
 specify (and in such form as the Agent may reasonably require in favour of
 the Security Agent or its nominee(s)) as provided under each Finance
 Document, as applicable:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 to perfect the Security Interests created
 or intended to be created by that Obligor under or evidenced by the Security
 Documents (which may include the execution of a mortgage, charge, assignment
 or other security over all or any of the assets which are, or are intended to
 be, the subject of the Security Documents, excluding registration of the
 Guarantees and Counter Guarantees with the respective Companies Registry) or
 to protect or ensure the priority of such Security Interests or for the
 exercise of any rights, 

 

45

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 powers and remedies of the Security Agent
 or the Finance Parties provided by or pursuant to the Finance Documents or by
 law;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 to confer on the Security Agent or on the
 Finance Parties Security Interests over any property and assets of that
 Obligor located in any jurisdiction equivalent or similar to the Security
 Interest intended to be conferred by or pursuant to the Security Documents;
 and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 to facilitate the realisation of the assets
 which are, or are intended to be, the subject of the Security Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.8.2

 	
  

 	
 Each Obligor shall take all such action as
 is available to it (including making all filings and registrations, excluding
 registration of the Guarantees and Counter Guarantees with the respective
 Companies Registry) as may be necessary for the purpose of the creation,
 perfection, protection or maintenance of any Security Interest (or the
 priority of any Security Interest) conferred or intended to be conferred on
 the Security Agent or the Finance Parties by or pursuant to the relevant
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.9

 	
  

 	
 Negative pledge in
 respect of Charged Property

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as approved and for Permitted
 Maritime Liens, no Obligor will grant or allow to exist any Security Interest
 over any Charged Property.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.10

 	
  

 	
 Environmental
 matters

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.10.1

 	
  

 	
 Without prejudice to clause 18.5(b), the
 Agent will be notified as soon as reasonably practicable of any Environmental
 Claim being made against any Fleet Vessel or the owner of any Fleet Vessel or
 the Manager which, if successful to any extent, might reasonably be expected
 to have a Material Adverse Effect and of any Environmental Incident which may
 give rise to such a claim and will be kept regularly and promptly informed in
 reasonable detail of the nature of, and response to, any such Environmental
 Incident and the defence to any such claim.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.10.2

 	
  

 	
 Environmental Laws (and any consents,
 licences or approvals obtained under them) applicable to Fleet Vessels will
 not be violated in a way which might have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.11

 	
  

 	
 Pari passu

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor will ensure that its
 obligations under the Finance Documents shall, without prejudice to the
 security intended to be created by the Security Documents, at all times rank
 at least pari passu with all its other present and future unsecured and
 unsubordinated Indebtedness with the exception of any obligations which are
 mandatorily preferred by law and not by contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.12

 	
  

 	
 IPO

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.12.1

 	
  

 	
 The Borrower undertakes that (a) no Default
 has occurred at the time when the IPO commences and when such IPO is
 completed and (b) following completion of an IPO, no IPO Change of Control
 will occur.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 19.12.2

 	
  

 	
 If an IPO has been
 completed, then:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the Finance Parties hereby agree that,
 within 90 days after the Borrower has notified the Agent that such IPO has
 been completed, they will promptly instruct the Security Agent to, and the
 Security Agent will, release each of the Counter Guarantors from its
 obligations under its respective Counter Guarantees;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the Finance Parties will agree to enter
 into amendments to the Finance Documents (including a supplemental agreement
 to this Agreement and the Guarantees amending such terms as may be required,
 including, for the avoidance of doubt, the definition of Group in clause 1.1), in
 such form and substance as may be required by the Agent and 

 

46

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 at the cost and expense of the Borrower,
 which will effect and implement (inter alia) the following changes to the
 Finance Documents:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (i)

 	
 Maximum Leverage (as defined in the GasLog
 Guarantee) required under the GasLog Guarantee shall be reduced to 65%;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (ii)

 	
 Market Adjusted Net Worth (as defined in
 the GasLog Guarantee) required under the GasLog Guarantee shall be increased
 to $350,000,000;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (iii)

 	
 the restrictions on the payment of
 dividends by GasLog will be amended such that GasLog will be entitled to
 declare or pay dividends to its shareholders in respect of a financial year,
 at any time if:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 (A)

 	
 it holds Cash and Cash Equivalents of at
 least 4% of Total Indebtedness (each such term as defined in the GasLog
 Guarantee); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 (B)

 	
 no Default shall have occurred at the time
 of declaration or payment of such dividends nor would occur as a result of
 the declaration or payment of such dividends;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the Finance Parties will agree to enter
 into amendments to the Finance Documents (including a supplemental agreement
 to this Agreement amending such terms as may be required, in such form and
 substance as may be required by the Agent and at the cost and expense of the
 Borrower, which will effect and implement (inter alia) the removal of all
 obligations and references to the Counter Guarantor Subsidiary.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20

 	
  

 	
 Construction period

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Unless otherwise specifically provided, the
 Borrower undertakes that this clause 20 will be complied with throughout the
 period from the date of this Agreement until the earlier of the Delivery of
 the Ship and the end of the Facility Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.1

 	
  

 	
 Document of title

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall give irrevocable
 instructions to the Builder to hold the Ship and any document of title to the
 Ship to the order and at the disposal of the Security Agent and ensure that
 the Builder complies with such instructions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.2

 	
  

 	
 Performance of
 Building Contract

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall duly and punctually
 observe and perform all the conditions and obligations imposed on it by the
 Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.3

 	
  

 	
 Performance by
 Builder and Refund Guarantor

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall use its best endeavours
 to ensure that the Builder performs its obligations under the Building
 Contract and builds the Ship diligently and that the Refund Guarantor
 performs its obligations under the Refund Guarantee.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.4

 	
  

 	
 Progress and
 information

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Promptly upon the Borrower becoming aware
 of the same, it shall inform the Agent of any breach by the Builder of the
 Building Contract and upon the Agent’s request, the Borrower shall advise the
 Agent of the progress of construction of the Ship and supply the Agent with
 such other information as the Agent may require about the construction of the
 Ship or the Building Contract or the Refund Guarantee.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

47

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.5

 	
  

 	
 Arbitration under
 Building Contract

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall promptly notify the
 Agent:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 if either party begins an arbitration under
 the Building Contract;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 of the identity of the arbitrators; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 of the conclusion of the arbitration and
 the terms of any arbitration award.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.6

 	
  

 	
 Conveyance on
 default

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where the Ship is (or is to be) sold in exercise
 of any power contained in the Pre-Delivery Security Assignment or otherwise
 conferred on the Security Agent, the Borrower shall execute, immediately upon
 the Agent’s request, such form of conveyance of the Ship as the Agent may
 require.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.7

 	
  

 	
 Enforcement of
 rights

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Upon the occurrence of an Event of Default
 which is continuing or upon the Agent becoming aware of a breach by the
 Builder under the Building Contract, the Borrower shall do everything which
 the Agent requires for the purpose of enforcing the rights of the Borrower
 under the Building Contract and/or the Refund Guarantee and allow its name to
 be used by the Security Agent for that purpose. Prior to the occurrence of an
 Event of Default which is continuing, the Borrower shall, at the Agent’s
 request, enter into consultation with the Agent and upon agreement between
 the Agent and the Borrower, the Borrower shall do everything which the Agent
 requires for the purpose of enforcing the rights of the Borrower under the
 Building Contract and/or the Refund Guarantee and allow its name to be used
 by the Security Agent for that purpose.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.8

 	
  

 	
 Notification of
 certain events

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall notify the Agent as soon
 as it becomes aware that either party has cancelled, rescinded, repudiated or
 otherwise terminated the Building Contract (or has purported to do so) or has
 rejected the Ship (or purported to do so) or if the Ship has become a Total
 Loss or partial loss or is materially damaged or if a dispute arises under
 the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.9

 	
  

 	
 Ship’s registration
 and mortgage

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower will, immediately upon its
 Delivery, duly execute (and deliver to the Agent) the Mortgage and register
 the Ship and the Mortgage with the relevant Registry under the laws and flag
 of its Flag State.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.10

 	
  

 	
 Sale or other
 disposal

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, such approval not to
 be unreasonably withheld, the Borrower will not dispose of the Ship or any
 share or interest in it or its rights under the Building Contract or the
 Refund Guarantee or agree to do so.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.11

 	
  

 	
 Variations

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the Refund Guarantee will not be varied;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the Building Contract shall not be varied
 and the specification of the Ship shall not be materially varied (and, for
 the avoidance of doubt, variations requiring approval shall include, but
 shall not be limited to, any assignment or novation of the Building Contract,
 any variation which might reasonably be expected to delay the delivery of the
 Ship beyond the Last Availability Date or put at risk the delivery of the
 Ship to the Charterer

 

48

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 or any variation to alter the circumstances
 in which the Building Contract may be cancelled, terminated or suspended);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the specification of the Ship will not be
 changed in a substantial way (and for the avoidance of doubt, substantial
 changes requiring approval shall include, but shall not be limited to, any
 variation which alters the intended type, commercial use, purpose or trading
 capacity of the Ship or materially reduces the Ship’s anticipated value when
 completed or impairs the intended use under the Charter); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 the terms upon which supervision of
 construction of the Ship is being conducted (which might have been approved)
 shall not be varied.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For this purpose, ordering any extras,
 additions or alterations will be a substantial change and a material
 variation if their cost (or if the aggregate cost of the proposed work together
 with the cost of any additional work already ordered or change of
 specification already agreed) will alter the Contract Price by a cumulative
 amount greater than 5% of the Price. The Borrower shall agree in writing with
 the Builder the terms and specification of any such work before the work is
 put in hand irrespective of whether approval of that work is required under
 the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.12

 	
  

 	
 Releases and
 waivers

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, there shall be no
 release of the Builder or the Refund Guarantor from any of its obligations
 under the Building Contract or the Refund Guarantee, no waiver of any breach
 of such obligations and no consent to anything which would otherwise be such
 a breach.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 20.13

 	
  

 	
 Rejection and
 cancellation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval such approval not to
 be:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 unreasonably delayed; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 unreasonably withheld (in the event that
 the delivery of the Ship to the Charterer will not be in compliance with the
 Charter),

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the Borrower shall not exercise any right
 which it may have to reject the Ship (save in circumstances where the
 Building Contract is not cancelled, rescinded or otherwise terminated and the
 Builder shall have the right under the Building Contract to remedy a
 deficiency in the Ship justifying such rejection and re-tender it for
 delivery to the Borrower after such rejection) or cancel or rescind or
 otherwise terminate the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21

 	
  

 	
 Dealings with Ship

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 21
 will be complied with in relation to the Ship throughout the Mortgage Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.1

 	
  

 	
 Ship’s name and
 registration

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 The Ship’s name shall only be changed after
 prior notice to the Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 The Ship shall be permanently registered
 with the relevant Registry within 90 days of the date of the Mortgage
 registered with the relevant Registry under the laws of its Flag State.
 Except with approval, the Ship shall not be registered under any other flag
 or at any other port or fly any other flag (other than that of its Flag
 State). If that registration is for a limited period, it shall be renewed at
 least 45 days before the date it is due to expire and the Agent shall be
 notified of that renewal at least 30 days before that date.

 

49

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 Nothing will be done and no action will be
 omitted if that might result in such registration being forfeited or
 imperilled or the Ship being required to be registered under the laws of
 another state of registry.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.2

 	
  

 	
 Sale or other disposal
 of Ship

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, such approval not to
 be unreasonably withheld, the Borrower will not sell, or agree to, transfer,
 abandon or otherwise dispose of the Ship or any share or interest in it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.3

 	
  

 	
 Manager

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A manager of the Ship shall not be
 appointed unless that manager and the terms of its appointment are approved
 (such approval not to be unreasonably withheld) and it has delivered a duly
 executed Manager’s Undertaking to the Security Agent. Once approved, no
 material variations may be agreed to the terms of appointment of the manager
 without approval (and, for the avoidance of doubt, any assignment or novation
 of the terms of appointment without approval shall constitute a material variation).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.4

 	
  

 	
 Copy of Mortgage on
 board

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A properly certified copy of the Mortgage
 shall be kept on board the Ship with its papers and shown to anyone having
 business with the Ship which might create or imply any commitment or Security
 Interest over or in respect of the Ship (other than a lien for crew’s wages
 and salvage) and to any representative of the Agent or the Security Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.5

 	
  

 	
 Notice of Mortgage

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A framed printed notice of the Mortgage
 shall be prominently displayed in the navigation room and in the Master’s
 cabin of the Ship. The notice must be in plain type and read as follows:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 “NOTICE OF
 MORTGAGE

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This Ship is subject to a first mortgage in
 favour of [here insert name of mortgagee] of [here insert address of mortgagee].
 Under the said mortgage and related documents, neither the Owner nor any
 charterer nor the Master of this Ship has any right, power or authority to
 create, incur or permit to be imposed upon this Ship any commitments or
 encumbrances whatsoever other than for crew’s wages and salvage”.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No-one will have any right, power or
 authority to create, incur or permit to be imposed upon the Ship any lien
 whatsoever other than for crew’s wages and salvage.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.6

 	
  

 	
 Conveyance on
 default

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where the Ship is (or is to be) sold in
 exercise of any power conferred by the Security Documents, the Borrower
 shall, upon the Agent’s request, immediately execute such form of transfer of
 title to the Ship as the Agent may require.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.7

 	
  

 	
 Chartering

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Borrower shall not enter into any
 charter commitment for the Ship (except for the Charter), which is:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 a bareboat or demise charter or passes
 possession and operational control of the Ship to another person;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 capable of lasting more than 13 calendar
 months;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 on terms as to payment or amount of hire
 which are materially less beneficial to it than the terms which at that time
 could reasonably be expected to be obtained on the open 

 

50

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 market for vessels of the same age and type
 as the Ship under charter commitments of a similar type and period; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 to an Affiliate.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.8

 	
  

 	
 Sharing of Earnings

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Borrower shall
 not enter into any arrangement under which its Earnings from the Ship may be
 shared with anyone else.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21.9

 	
  

 	
 Payment of Earnings

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower’s Earnings from the Ship shall
 be paid in the way required by the Deed of Covenant and the Charter
 Assignment. If any Earnings are held by brokers or other agents, they shall
 be paid to the Security Agent, if it requires this after the Earnings have
 become payable to it under the Deed of Covenant and the Charter Assignment.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22

 	
  

 	
 Condition and
 operation of Ship

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 22
 will be complied with in relation to the Ship throughout the Mortgage Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.1

 	
  

 	
 Repair

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall be kept in a good, safe and
 efficient state of repair. The quality of workmanship and materials used to
 repair the Ship or replace any damaged, worn or lost parts or equipment shall
 be sufficient to ensure that the Ship’s value is not reduced.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.2

 	
  

 	
 Modification

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the structure, type
 or performance characteristics of the Ship shall not be modified in a way
 which could or might materially alter the Ship or materially reduce its
 value.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.3

 	
  

 	
 Removal of parts

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, no material part of
 the Ship or any equipment shall be removed from the Ship if to do so would
 materially reduce its value (unless at the same time it is replaced with
 equivalent parts or equipment owned by the Borrower free of any Security
 Interest except under the Security Documents).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.4

 	
  

 	
 Third party owned
 equipment

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, equipment owned by a
 third party shall not be installed on the Ship, unless it can be removed
 without risk of causing damage to the structure or fabric of the Ship or
 without incurring significant expense.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.5

 	
  

 	
 Maintenance of class; compliance with laws

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship’s class shall be the
 Classification with the Classification Society and neither the Classification
 nor the Classification Society shall be changed without approval and there
 must be no material overdue recommendations. The Ship and every person who
 owns, operates or manages the Ship shall comply with all laws applicable to
 vessels registered in its Flag State or which for any other reason apply to
 the Ship or to its condition or operation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.6

 	
  

 	
 Surveys

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall be submitted to continuous
 surveys and any other surveys which are required for it to maintain the
 Classification as its class. Copies of reports of those surveys shall be
 provided promptly to the Agent if it so requests.

 

51

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.7

 	
  

 	
 Inspection and
 notice of drydockings

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent and/or surveyors or other persons
 appointed by it for such purpose shall be allowed to board the Ship at all
 reasonable times, subject to prior notice to the Borrower and without
 hindering the Ship’s operations, to inspect it and given all proper
 facilities needed for that purpose. The Agent shall be given reasonable
 advance notice of any intended drydocking of the Ship (whatever the purpose
 of that drydocking).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.8

 	
  

 	
 Prevention of
 arrest

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All debts, damages, liabilities and
 outgoings (due and payable and not contested by Borrower in good faith) which
 have given, or may reasonably give, rise to maritime, statutory or possessory
 liens on, or claims enforceable against, the Ship, its Earnings or Insurances
 shall be promptly paid and discharged.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.9

 	
  

 	
 Release from arrest

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall use its reasonable
 endeavours that the Ship, its Earnings and Insurances shall promptly within
 15 days (or such longer period as may be approved) be released from any
 arrest, detention, attachment or levy, and that any legal process against the
 Ship shall be promptly within 15 days (or such longer period as may be
 approved) discharged, by whatever action is required to achieve that release
 or discharge.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.10

 	
  

 	
 Information about
 Ship

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall promptly be given any
 information which it may reasonably require about the Ship or its employment,
 position, use or operation, including details of towages and salvages, and
 copies of all its charter commitments entered into by or on behalf of any
 Obligor, provided that any information so requested and supplied which
 pertains to the Charter shall be held by the Agent and the other Finance
 Parties on a confidential basis.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.11

 	
  

 	
 Notification of certain events

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall promptly be notified of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any damage to the Ship where the cost of
 the resulting repairs may exceed the Major Casualty Amount;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any occurrence which may result in the Ship
 becoming a Total Loss;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any requisition of the Ship for hire;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 any Environmental Incident involving the
 Ship and Environmental Claim being made in relation to such an incident;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 any requirement or recommendation made in
 relation to the Ship by any insurer or the Classification Society or by any
 competent authority which is not, or cannot be, complied with in the manner
 or time required or recommended; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (f)

 	
 any arrest or detention of the Ship or any
 exercise or purported exercise of a lien or other claim on the Ship or its
 Earnings or Insurances.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.12

 	
  

 	
 Payment of
 outgoings

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All tolls, dues and other outgoings
 whatsoever in respect of the Ship and its Earnings and Insurances shall be
 paid promptly. Proper accounting records shall be kept of the Ship and its
 Earnings.

 

52

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.13

 	
  

 	
 Evidence of
 payments

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall be allowed proper and
 reasonable access, subject to prior written notice and provided that the
 operations of the Borrower are not in any way hindered, to those accounting
 records when it reasonably requests it and, when it reasonably requires it,
 shall be given satisfactory evidence that:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the wages and allotments and the insurance
 and pension contributions of the Ship’s crew are being promptly and regularly
 paid;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 all deductions from its crew’s wages in
 respect of any applicable Tax liability are being properly accounted for; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the Ship’s master has no claim for
 disbursements other than those incurred by him in the ordinary course of
 trading on the voyage then in progress.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.14

 	
  

 	
 Repairers’ liens

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Ship shall not be
 put into any other person’s possession for work to be done on the Ship if the
 cost of that work will exceed or is likely to exceed the Major Casualty
 Amount unless the Borrower has established to the reasonable satisfaction of
 the Agent that it has sufficient reserves with the Account Bank to pay for
 the cost of such work.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.15

 	
  

 	
 Codes

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship and the persons responsible for
 its operation shall at all times comply with the requirements of any
 applicable code or prescribed procedures required to be observed by the Ship
 or in relation to its operation under any applicable law or regulation
 (including but not limited to those currently known as the ISM Code and the
 ISPS Code). The Agent shall promptly be informed of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any threatened or actual withdrawal of any
 certificate issued in accordance with any such code which is or may be
 applicable to the Ship or its operation; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the issue of any such certificate or the
 receipt of notification that any application for such a certificate has been
 refused.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.16

 	
  

 	
 Survey report

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 As soon as reasonably practicable after the
 Agent requests it, the Agent shall be given a report on the seaworthiness
 and/or safe operation of the Ship, from approved surveyors or inspectors. If
 any recommendations are made in such a report they shall be complied with in
 the way and by the time recommended in the report.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.17

 	
  

 	
 Lawful use

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall not be employed:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in any way or in any activity which is
 unlawful under international law or the domestic laws of any relevant
 country;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 in carrying illicit or prohibited goods;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 in a way which may make it liable to be
 condemned by a prize court or destroyed, seized or confiscated; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 if there are hostilities in any part of the
 world (whether war has been declared or not), in carrying contraband goods

 

53

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and the persons responsible for the
 operation of the Ship shall take all necessary and proper precautions to
 ensure that this does not happen including participation in industry or other
 voluntary schemes available to the Ship and in which leading operators of
 ships operating under the same flag or engaged in similar trades generally
 participate at the relevant time.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22.18

 	
  

 	
 War zones

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship may enter or remain in any zone
 which has been declared a war zone by any government entity or the Ship’s war
 risk insurers, subject to any requirements of the Ship’s insurers necessary
 to ensure that the Ship remains properly insured and complies with any
 requirements (including any requirement for the payment of extra insurance
 premiums) which the insurers specify.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23

 	
  

 	
 Insurance

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 23
 shall be complied with in relation to the Ship and its Insurances throughout
 the Mortgage Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.1

 	
  

 	
 Insurance terms

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this clause 23:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “excess risks” means the proportion (if
 any) of claims for general average, salvage and salvage charges not
 recoverable under the hull and machinery insurances of a vessel in
 consequence of the value at which the vessel is assessed for the purpose of
 such claims exceeding its insured value.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “excess war risk P&I cover” means
 cover for claims only in excess of amounts recoverable under the usual war
 risk cover including (but not limited to) hull and machinery, crew and
 protection and indemnity risks.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “hull cover” means insurance cover against
 the risks identified in clause 23.2(a).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “minimum hull cover” means an amount equal
 at the relevant time to 120% of the Loan.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “P&I risks” means the usual risks (including
 liability for oil pollution, excess war risk P&I cover) covered by a
 protection and indemnity association which is a member of the International
 Group of protection and indemnity associations (or, if the International
 Group ceases to exist, any other leading protection and indemnity association
 or other leading provider of protection and indemnity insurance) (including,
 without limitation, the proportion (if any) of any collision liability not
 covered under the terms of the hull cover).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.2

 	
  

 	
 Coverage required

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall at all times be insured:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 against fire and usual marine risks
 (including excess risks) and war risks (including war protection and
 indemnity risks and terrorism risks) on an agreed value basis, for at least
 its minimum hull cover and no less than its market value;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 against P&I risks for the highest
 amount then available in the insurance market for vessels of similar age,
 size and type as the Ship (but, in relation to liability for oil pollution,
 for an amount of not less than $1,000,000,000) and a freight, demurrage and
 defence cover;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 against such other risks and matters which
 the Agent (acting on the instructions of all the Lenders) notifies it that it
 considers reasonable for a prudent shipowner or operator to insure against at
 the time of that notice; and

 

54

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 on terms which comply with the other
 provisions of this clause 23.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.3

 	
  

 	
 Placing of cover

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The insurance coverage required by clause
 23.2 (Coverage
 required) shall be:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in the name of the Borrower and (in the
 case of the Ship’s hull cover) no other person (other than the Security Agent
 if required by it) (unless such other person is approved and, if so required
 by the Agent, has duly executed and delivered a first priority assignment of
 its interest in the Ship’s Insurances to the Security Agent in an approved
 form and provided such supporting documents and opinions in relation to that
 assignment as the Agent requires);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if the Agent so requests, in the joint
 names of the Borrower and Security Agent (and, to the extent reasonably
 practicable in the insurance market, without liability on the part of the
 Security Agent for premiums or calls);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 in dollars or another approved currency;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 arranged through approved brokers or direct
 with approved insurers or protection and indemnity or war risks associations;
 and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 on approved terms and with approved
 insurers or associations.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.4

 	
  

 	
 Deductibles

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The aggregate amount of any excess or
 deductible under the Ship’s hull cover shall not exceed $1,000,000 without
 the Agent’s approval.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.5

 	
  

 	
 Mortgagee’s
 insurance

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 The Borrower shall promptly reimburse to
 the Agent the cost (as conclusively certified by the Agent) of taking out and
 keeping in force in respect of the Ship on approved terms, or in considering
 or making claims under a mortgagee’s interest insurance and a mortgagee’s additional
 perils (all P&I risks) cover for the benefit of the Finance Parties for
 an amount of 110% of the Loan; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any other insurance cover which the Agent
 reasonably requires in respect of any Finance Party’s interests and potential
 liabilities (but not with respect to loss of hire of the Ship) (whether as
 mortgagee of the Ship or beneficiary of the Security Documents).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.6

 	
  

 	
 Fleet liens, set
 off and cancellations

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Ship’s hull cover also insures other
 vessels, the Security Agent shall either be given an undertaking in approved
 terms by the brokers or (if such cover is not placed through brokers or the
 brokers do not, under any applicable laws or insurance terms, have such
 rights of set off and cancellation) the relevant insurers that the brokers or
 (if relevant) the insurers will not:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 set off against any claims in respect of
 the Ship any premiums due in respect of any of such other vessels insured; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 cancel that cover because of non-payment of
 premiums in respect of such other vessels,

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or the Borrower shall ensure that hull
 cover for the Ship is provided under a separate policy from any other
 vessels.

 

55

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.7

 	
  

 	
 Payment of premiums

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All premiums, calls, contributions or other
 sums payable in respect of the Insurances shall be paid punctually and the
 Agent shall be provided with all relevant receipts or other evidence of
 payment upon request.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.8

 	
  

 	
 Details of proposed
 renewal of Insurances

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 At least 14 days before any of the
 Insurances are due to expire, the Agent shall be told the names of the
 brokers, insurers and associations proposed to be used for the renewal of
 such Insurances and the amounts, risks and terms in, against and on which the
 Insurances are proposed to be renewed.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.9

 	
  

 	
 Instructions for
 renewal

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 At least seven days before any of the
 Insurances are due to expire, instructions shall be given to brokers,
 insurers and associations for them to be renewed or replaced on or before
 their expiry.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.10

 	
  

 	
 Confirmation of
 renewal

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Insurances shall be renewed upon their
 expiry in a manner and on terms which comply with this clause 23 and
 confirmation of such renewal given by approved brokers or insurers to the
 Agent at least seven days (or such shorter period as may be approved) before
 such expiry.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.11

 	
  

 	
 P&I guarantees

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any guarantee or undertaking required by
 any protection and indemnity or war risks association in relation to the Ship
 shall be provided when required by the association.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.12

 	
  

 	
 Insurance documents

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall be provided with pro forma
 copies of all insurance policies and other documentation issued by brokers,
 insurers and associations in connection with the Insurances as soon as they
 are available after they have been placed or renewed and all insurance
 policies and other documents relating to the Insurances shall be deposited
 with any approved brokers or (if not deposited with approved brokers) the
 Agent or some other approved person.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.13

 	
  

 	
 Letters of
 undertaking

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Unless otherwise approved where the Agent
 is satisfied that equivalent protection is afforded by the terms of the
 relevant Insurances and/or any applicable law and/or a letter of undertaking
 provided by another person, on each placing or renewal of the Insurances, the
 Agent shall be provided promptly with letters of undertaking in an approved
 form (having regard to general insurance market practice and law at the time
 of issue of such letter of undertaking) from the relevant brokers, insurers
 and associations.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.14

 	
  

 	
 Insurance Notices
 and Loss Payable Clauses

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The interest of the Security Agent as
 assignee of the Insurances shall be endorsed on all insurance policies and
 other documents by the incorporation of a Loss Payable Clause and an
 Insurance Notice in respect of the Ship and its Insurances signed by the
 Borrower and, unless otherwise approved, each other person assured under the
 relevant cover (other than the Security Agent if it is itself an assured).

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.15

 	
  

 	
 Insurance
 correspondence

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If so required by the Agent, the Agent
 shall promptly be provided with copies of all written communications between
 the assureds and brokers, insurers and associations relating to any of the
 Insurances as soon as they are available.

 

56

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.16

 	
  

 	
 Qualifications and
 exclusions

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All requirements applicable to the
 Insurances shall be complied with and the Insurances shall only be subject to
 approved exclusions or qualifications.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.17

 	
  

 	
 Independent report

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Agent asks the Borrower for a
 detailed report from an approved independent firm of marine insurance brokers
 giving their opinion on the adequacy of the Insurances then the Agent shall
 be provided promptly with such a report at no cost to the Agent or (if the
 Agent obtains such a report itself) the Borrower shall reimburse the Agent
 for the cost of obtaining that report.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.18

 	
  

 	
 Collection of
 claims

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All documents and other information and all
 assistance required by the Agent to assist it and/or the Security Agent in
 trying to collect or recover any claims under the Ship’s Insurances shall be
 provided promptly.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.19

 	
  

 	
 Employment of Ship

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall only be employed or operated
 in conformity with the terms of the Insurances (including any express or
 implied warranties) and not in any other way, unless the insurers have
 consented and any additional requirements of the insurers have been
 satisfied.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.20

 	
  

 	
 Declarations and
 returns

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If any of the Insurances are on terms that
 require a declaration, certificate or other document to be made or filed
 before the Ship sails to, or operates within, an area, those terms shall be
 complied with within the time and in the manner required by those Insurances.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.21

 	
  

 	
 Application of
 recoveries

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All sums paid under the Insurances to
 anyone other than the Security Agent shall be applied in repairing the damage
 and/or in discharging the liability in respect of which they have been paid
 except to the extent that the repairs have already been paid for and/or the
 liability already discharged.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23.22

 	
  

 	
 Settlement of
 claims

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any claim under the Insurances for a Total
 Loss or Major Casualty shall only be settled, compromised or abandoned with
 prior approval.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24

 	
  

 	
 Minimum security
 value

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 24
 will be complied with throughout the Facility Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.1

 	
  

 	
 Valuation of assets

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For the purpose of the Finance Documents,
 the value at any time of the Ship or any other asset over which additional
 security is provided under this clause 24 will be its value as most recently
 determined in accordance with this clause 24.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.2

 	
  

 	
 Valuation frequency

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Valuation of the Ship or, as the case may
 be, the Building Contract and each such other asset in accordance with this
 clause 24 shall be required by the Agent on or prior to making available the
 Pre-Delivery Commitment, the Delivery Commitment, once per annum thereafter
 within ten days of the end of each calendar year and at any time after the
 occurrence of a Default.

 

57

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.3

 	
  

 	
 Expenses of
 valuation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall bear, and reimburse to
 the Agent where incurred by the Agent, all costs and expenses of providing
 such a valuation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.4

 	
  

 	
 Valuations
 procedure

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The value of the Ship (or the Building
 Contract up until the date falling two months prior to the Delivery Date of
 the Building Contract) shall be determined in accordance with, and by valuers
 approved and appointed in accordance with, this clause 24. Additional
 security provided under this clause 24 shall be valued in such a way, on such
 a basis and by such persons (including the Agent itself) as may be approved.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.5

 	
  

 	
 Currency of
 valuation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Valuations shall be provided by valuers in
 dollars or, if a valuer is of the view that the relevant type of vessel is generally
 bought and sold in another currency, in that other currency. If a valuation
 is provided in another currency, for the purposes of this Agreement it shall
 be converted into dollars at the Agent’s spot rate of exchange for the
 purchase of dollars with that other currency as at the date to which the
 valuation relates.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.6

 	
  

 	
 Basis of valuation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each valuation will be made:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 without physical inspection (unless
 required by the Agent);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 on the basis of a sale for prompt delivery
 for a price payable in full in cash on delivery at arm’s length on normal
 commercial terms between a willing buyer and a willing seller;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 without taking into account the benefit
 (but taking into account the burden) of any charter commitment; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 (in the case of a valuation of the Building
 Contract) by deducting from the valuation the aggregate payments which remain
 to be paid by the Borrower under the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.7

 	
  

 	
 Information required
 for valuation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall promptly provide to the
 Agent and any such valuer any information which they reasonably require for
 the purposes of providing such a valuation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.8

 	
  

 	
 Approval of valuers

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All valuers must have been approved (the
 approved valuers as at the date of this Agreement are E. A. Gibson
 Shipbrokers Limited, Lorentzen & Stemoco A.S., Barry Rogliano Salles
 & Cie, Clarkson plc, Poten & Partners, Fearnley and Simpson, Spence
 & Young Limited). The Agent may from time to time notify the Borrower of
 approval of one or more independent ship brokers as valuers for the purposes
 of this clause 24. The Agent shall respond promptly to any request by the
 Borrower for approval of a broker nominated by the Borrower. The Agent may at
 any time by notice to the Borrower withdraw any previous approval of a valuer
 for the purposes of future valuations. That valuer may not then be appointed
 to provide valuations unless it is once more approved. If the Agent has not
 approved at least three brokers as valuers at a time when a valuation is
 required under this clause 24, the Agent shall promptly notify the Borrower
 of the names of at least three valuers which are approved.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.9

 	
  

 	
 Appointment of
 valuers

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 When a valuation is required for the
 purposes of this clause 24, the Agent or, if so approved at that time, the
 Borrower shall promptly appoint approved valuers to provide such a valuation.
 If

 

58

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the Borrower is approved to appoint valuers
 but fails to do so promptly, the Agent may appoint approved valuers to
 provide that valuation.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.10

 	
  

 	
 Number of valuers

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each valuation shall be carried out by two
 approved valuers of whom one shall be nominated by the Agent and the other by
 the Borrower. If the Borrower fails promptly to nominate a second valuer then
 the Agent may nominate the second valuer.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.11

 	
  

 	
 Differences in
 valuations

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If valuations provided by individual
 valuers differ, the value of the Ship or, as the case may be, the Building
 Contract for the purposes of the Finance Documents will be the mean average
 of those valuations. If valuations provided by individual valuers appointed
 by the Borrower and the Agent differ by 15% or more a third approved valuer
 shall be appointed by the Agent and the value of the Ship or, as the case may
 be, the Building Contract will be the mean average of those three valuations.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.12

 	
  

 	
 Security shortfall

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If at any time the Security Value is less
 than the Minimum Value, the Agent may, and shall, if so directed by the
 Lenders, by notice to the Borrower require such deficiency be remedied. The
 Borrower shall then within 14 days of receipt of such notice ensure that the
 Security Value equals or exceeds the Minimum Value. For this purpose, the
 Borrower may:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 provide additional security over other
 approved assets by the Lenders in accordance with this clause 24; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 cancel part of the Total Commitments under
 clause 7.2 (Voluntary cancellation) but on five Business Days’ notice
 instead of the period required by such clause; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 prepay part of the Loan under clause 7.3 (Voluntary
 prepayment) but on five Business Days’ notice instead of the
 period required by such clause.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.13

 	
  

 	
 Creation of
 additional security

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The value of any additional security which
 the Borrower offers to provide to remedy all or part of a shortfall in the
 amount of the Security Value will only be taken into account for the purposes
 of determining the Security Value if and when:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 that additional security, its value and the
 method of its valuation have been approved by the Lenders;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 a Security Interest over that security has
 been constituted in favour of the Security Agent in an approved form and
 manner;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 this Agreement has been unconditionally
 amended in such manner as the Agent requires in consequence of that
 additional security being provided; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 the Agent, or its duly authorised
 representative, has received such documents and evidence it may require in
 relation to that additional security including documents and evidence of the
 type referred to in Schedule 3 in relation to that additional security
 and its execution and (if applicable) registration.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 24.14

 	
  

 	
 Security release

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Security Value shall at any time
 exceed the Security Requirement, and the Borrower shall previously have
 provided further security to the Security Agent pursuant to clause 24.12 (Security Shortfall), the Security Agent
 shall, as soon as reasonably practicable after notice from the Borrower to do
 so and subject to being indemnified to its satisfaction against the cost of 

 

59

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 doing so, release
 any such further security specified by the Borrower provided that the Bank is
 satisfied that, immediately following such release, the Security Value will
 equal or exceed the Security Requirement and no other Event of Default shall
 have occurred and be continuing.

 
	
  

 	
  

 	
  

 
	
 25

 	
  

 	
 Chartering
 undertakings

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower
 undertakes that this clause 25 will be complied with in relation to the Ship
 and its Charter Documents throughout the Mortgage Period. 

 
	
  

 	
  

 	
  

 
	
 25.1

 	
  

 	
 Variations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with
 approval (not to be unreasonably delayed), the Charter Documents shall not be
 varied (and, for the avoidance of doubt, any assignment or novation of a
 Charter Document without approval shall constitute a variation).

 
	
  

 	
  

 	
  

 
	
 25.2

 	
  

 	
 Releases
 and waivers

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with
 approval, there shall be no release by the Borrower of any obligation of any
 other person under the Charter Documents (including by way of novation), no
 waiver of any breach of any such obligation and no consent to anything which
 would otherwise be such a breach.

 
	
  

 	
  

 	
  

 
	
 25.3

 	
  

 	
 Termination
 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with
 approval, the Borrower shall not terminate or rescind any Charter Document or
 withdraw the Ship from service under the Charter or take any similar action.

 
	
  

 	
  

 	
  

 
	
 25.4

 	
  

 	
 Charter
 performance

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 perform its obligations under the Charter Documents and use its reasonable
 endeavours to ensure that each other party to them performs their obligations
 under the Charter Documents.

 
	
  

 	
  

 	
  

 
	
 25.5

 	
  

 	
 Notice
 of assignment

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 give notice of assignment of the Charter Documents to the other parties to
 them in the form specified by the Charter Assignment prior to the delivery of
 the Ship and shall procure a copy of that notice acknowledged by each
 addressee in the form specified in the Charter Assignment for the Agent.

 
	
  

 	
  

 	
  

 
	
 25.6

 	
  

 	
 Payment
 of Charter Earnings

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All Earnings which
 the Borrower is entitled to receive under the Charter Documents shall be paid
 in the manner required by the Security Documents.

 
	
  

 	
  

 	
  

 
	
 26

 	
  

 	
 Bank
 accounts

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower
 undertakes that this clause will be complied with throughout the Facility
 Period.

 
	
  

 	
  

 	
  

 
	
 26.1

 	
  

 	
 Revenue
 Account

 
	
  

 	
  

 	
  

 
	
 26.1.1

 	
  

 	
 The Borrower shall
 be the holder of one or more Accounts with an Account Bank which is
 designated as a “Revenue Account” for the purposes of the
 Finance Documents.

 
	
  

 	
  

 	
  

 
	
 26.1.2

 	
  

 	
 The Earnings of
 the Ship and
 all moneys payable to the Borrower under the Insurances shall be paid by the
 persons from whom they are due to a Revenue Account unless required to be
 paid to the Security Agent under the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 26.1.3

 	
  

 	
 The Borrower shall
 not withdraw amounts standing to the credit of an Revenue Account except as
 permitted by clause 26.1.4.

 

60

	
  

 	
  

 	
  

 
	
 26.1.4

 	
  

 	
 If there is no
 Event of Default, the Borrower shall withdraw the following amounts from a
 Revenue Account in the following order of priority during each monthly period
 in an approved manner:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 payments of the
 proper costs and expenses of insuring, drydocking, repairing, operating and
 maintaining the Ship (provided that such costs and expenses shall not exceed
 the Opex Hire (as defined in the Charter) in respect of such monthly period;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 payments then due
 to Finance Parties under the Finance Documents (other than payments due in
 respect of a prepayment);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 payments to a
 Retention Account required to comply with clause 26.2 (Retention Account);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 payments of Fixed
 Rate Differential Amount described in clause 26.3 (Fixed Rate Differential Amount) to the Fixed Rate
 Differential Account; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 the balance after
 payment of the sums referred to in (a) to (d) shall be paid to the Reserve
 Account.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.2

 	
  

 	
 Retention
 Account

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.2.1

 	
  

 	
 The Borrower shall
 be the holder of an Account denominated in dollars with an Account Bank which
 is designated as the “Retention Account” for the purposes of
 the Finance Documents by the Borrower and the Lender.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.2.2

 	
  

 	
 There shall be paid into the Retention Account such amounts as will
 ensure that, on each date (a retention date)
 falling 10 days after the date (start date)
 three months before the First Repayment Date and at monthly intervals after
 that, the amount credited to the Retention Account is at least:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the relevant
 fraction of the net amount of interest payable under clause 8 (Interest)
 during or at the end of the Interest Period current on that retention date;
 plus

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the relevant
 fraction of the instalment of the Loan due to be repaid under clause 6.1 (Repayment)
 on the next Repayment Date after that retention date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.2.3

 	
  

 	
 The relevant
 fraction of such an amount of interest or instalment of the Loan as at a
 retention date will be the fraction whose numerator is the number of
 retention dates up to and including the relevant retention date from the
 beginning of that Interest Period (in the case of interest) or since the
 start date or, if later, the previous Repayment Date (in the case of such
 instalment) and whose denominator is the number of retentions dates falling
 during or at the end of the relevant Interest Period or, as the case may be,
 the period beginning on the previous Repayment Date (or the start date in the
 case of retention dates before the First Repayment Date) and ending on the
 relevant Repayment Date.

 
	
  

 	
  

 	
  

 
	
 26.2.4

 	
  

 	
 The Borrower shall
 not withdraw amounts standing to the credit of the Retention Account except
 as permitted by clause 26.2.5.

 
	
  

 	
  

 	
  

 
	
 26.2.5

 	
  

 	
 If there is no
 continuing Event of Default and if (unless the payment is to a new Retention
 Account), after the withdrawal, the balance on the Retention Account will be
 at least the minimum amount required by clause 26.2.2 at that time, the
 Borrower may withdraw the following amounts from the Retention Account:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 payments of
 interest due under clause 8 (Interest) and repayments of the Loan due
 under clause 6.1 (Repayment); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 payment to the
 Reserve Account of any amount by which the balance on the Retention Account
 exceeds that minimum amount.

 

61

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.3

 	
  

 	
 Fixed
 Rate Differential Account

 
	
  

 	
  

 	
  

 
	
 26.3.1

 	
  

 	
 The Borrower shall
 be the holder of an Account denominated in dollars with an Account Bank which
 is designated as the “Fixed Rate Differential Account” for the
 purposes of the Finance Documents by the Borrower and the Lender.

 
	
  

 	
  

 	
  

 
	
 26.3.2

 	
  

 	
 There shall be paid into the Fixed Rate Differential Account such
 amounts as will ensure that, on each date (an FRD date) falling 10 days after the date (FRD start date) three months before the
 First Repayment Date and at monthly intervals after that, the amount credited
 to the Fixed Rate Differential Account is at least accruing the relevant fraction of the Fixed
 Rate Differential Amount during or at the end of the Interest Period
 current on that FRD date; 

 
	
  

 	
  

 	
  

 
	
 26.3.3

 	
  

 	
 The relevant
 fraction of such Fixed Rate Differential Amount as at an FRD date will be the
 fraction whose numerator is the number of FRD dates up to and including the
 relevant FRD date from the beginning of that Interest Period and whose
 denominator is the number of FRD dates falling during or at the end of the
 relevant Interest Period (or the FRD start date in the case of FRD dates
 before the First Repayment Date) and ending on the relevant Repayment Date

 
	
  

 	
  

 	
  

 
	
 26.3.4

 	
  

 	
 The Borrower shall
 not withdraw amounts standing to the credit of the Fixed
 Rate Differential Account except as permitted by clause 26.3.5.

 
	
  

 	
  

 	
  

 
	
 26.3.5

 	
  

 	
 If there is no
 continuing Event of Default the balance (if any) on the Fixed
 Rate Differential Account will be applied in accordance with clause 7.4 (Fixed Rate
 Differential Amount Prepayment) on each Repayment Date.

 
	
  

 	
  

 	
  

 
	
 26.4

 	
  

 	
 Reserve
 Account

 
	
  

 	
  

 	
  

 
	
 26.4.1

 	
  

 	
 The Borrower shall
 be the holder of one or more Accounts with an Account Bank which is
 designated as a “Reserve Account” for the purposes of the
 Finance Documents.

 
	
  

 	
  

 	
  

 
	
 26.4.2

 	
  

 	
 The Borrower shall
 not withdraw amounts standing to the credit of a Reserve Account except:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 if approved; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if the Charter is
 extended for a period of not less than 30 months in accordance with clause
 7(d) of the Charter and subject always to clause 28.21 (Charter termination), no Default having
 occurred and being continuing; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 in or towards
 repayment of the Loan on the Final Repayment Date.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.5

 	
  

 	
 Other
 provisions

 
	
  

 	
  

 	
  

 
	
 26.5.1

 	
  

 	
 An Account may
 only be designated for the purposes described in this clause 26 if:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 such designation
 is made in writing by the Agent and acknowledged by the Borrower and
 specifies the name and address of the Account Bank and the number and any
 designation or other reference attributed to the Account;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 an Account
 Security has been duly executed and delivered by the Borrower in favour of
 the Security Agent;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any notice
 required by the Account Security to be given to an Account Bank has been
 given to, and acknowledged by, the Account Bank in the form required by the
 relevant Account Security; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 the Agent, or its
 duly authorised representative, has received such documents and evidence it
 may require in relation to the Account and the Account Security including
 documents and evidence of the type referred to in Schedule 3 in relation
 to the Account and the relevant Account Security.

 

62

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 26.5.2

 	
  

 	
 The rates of
 payment of interest and other terms regulating any Account will be a matter
 of separate agreement between the Borrower and an Account Bank. If an Account
 is a fixed term deposit account, the Borrower may select the terms of
 deposits until the relevant Account Security has become enforceable and the
 Security Agent directs otherwise.

 
	
  

 	
  

 	
  

 
	
 26.5.3

 	
  

 	
 The Borrower shall
 not close any Account or alter the terms of any Account from those in force
 at the time it is designated for the purposes of this clause 26 or waive any
 of its rights in relation to an Account except with approval.

 
	
  

 	
  

 	
  

 
	
 26.5.4

 	
  

 	
 The Borrower shall
 deposit with the Security Agent all certificates of deposit, receipts or
 other instruments or securities relating to any Account, notify the Security
 Agent of any claim or notice relating to an Account from any other party and
 provide the Agent with any other information it may request concerning any
 Account.

 
	
  

 	
  

 	
  

 
	
 26.5.5

 	
  

 	
 Each of the Agent
 and the Security Agent each agrees that if it is an Account Bank in respect
 of an Account then there will be no restrictions on charging that Account as
 contemplated by this Agreement and it shall not (except with the approval of
 the Lenders) exercise any right of combination, consolidation or set-off
 which it may have in respect of that Account in a manner adverse to the
 rights of the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 27

 	
  

 	
 Business
 restrictions

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as
 otherwise approved, the Borrower undertakes that this clause 27 will be
 complied with by and in respect of each Obligor and their Affiliates (to the
 extent applicable) throughout the Facility Period. 

 
	
  

 	
  

 	
  

 
	
 27.1

 	
  

 	
 General
 negative pledge

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not permit any Security Interest to exist, arise or be created or extended
 over all or any part of its assets except for Permitted Security Interests, 

 
	
  

 	
  

 	
  

 
	
 27.2

 	
  

 	
 Transactions
 similar to security

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (Without prejudice
 to clauses 27.3 (Financial Indebtedness)and
 27.6 (Disposals)),
 the Borrower shall not:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 sell, transfer or
 otherwise dispose of any of its assets on terms whereby that asset is or may
 be leased to, or re-acquired by, any Affiliate other than pursuant to
 disposals permitted under clause 27.6 (Disposals);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 sell, transfer,
 factor or otherwise dispose of any of its receivables;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 enter into any
 arrangement under which money or the benefit of a bank or other account may
 be applied, set-off or made subject to a combination of accounts; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 enter into any
 other preferential arrangement having a similar effect.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.3

 	
  

 	
 Financial
 Indebtedness

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not incur or permit to exist, any Financial Indebtedness owed by it to anyone
 else except:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 Financial
 Indebtedness incurred under the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 Financial
 Indebtedness owed to another Obligor which is subordinated in an approved
 manner; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 Financial
 Indebtedness permitted under clause 27.4 (Guarantees).

 

63

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.4

 	
  

 	
 Guarantees

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not give or permit to exist, any guarantee by it in respect of indebtedness
 of any person or allow any of its indebtedness to be guaranteed by anyone
 else except:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 guarantees of
 obligations of Affiliates that are not Financial Indebtedness or obligations
 prohibited by any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 guarantees in
 favour of trade creditors of the Borrower given in the ordinary course of its
 business or in order to avoid the creation of, or to release, a Permitted
 Maritime Lien; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 guarantees which
 are Financial Indebtedness permitted under clause 27.3 (Financial Indebtedness).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.5

 	
  

 	
 Bank
 accounts and other financial transactions

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 maintain any bank
 accounts with a bank or financial institution except for the Accounts;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 hold cash in any
 account (other than in an Account); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 be party to any
 banking or financial transaction, whether on or off balance sheet, that is
 not expressly permitted under this clause 27 (Business restrictions).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.6

 	
  

 	
 Disposals

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not enter into a single transaction or a series of transactions, whether
 related or not and whether voluntarily or involuntarily, to dispose of any
 asset except for any of the following disposals so long as they are not
 prohibited by any other provision of the Finance Documents:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 disposals of
 assets made in (and on terms reflecting) the ordinary course of trading of
 the disposing entity;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 disposals of
 obsolete assets, or assets which are no longer required for the purpose of
 the business of the Borrower, in each case for cash on normal commercial terms
 and on an arm’s length basis; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the application of
 cash or cash equivalents in the acquisition of assets or services in the
 ordinary course of its business.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.7

 	
  

 	
 Contracts
 and arrangements with Affiliates

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor shall
 be a party to any arrangement or contract with any of its Affiliates unless
 such arrangement or contract is on an arm’s length basis.

 
	
  

 	
  

 	
  

 
	
 27.8

 	
  

 	
 Subsidiaries

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not establish or acquire a company or other entity.

 
	
  

 	
  

 	
  

 
	
 27.9

 	
  

 	
 Acquisitions
 and investments

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not, without approval, acquire any person, business, assets or liabilities or
 make any investment in any person or business or enter into any joint-venture
 arrangement except:

 

64

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 acquisitions of
 assets in the ordinary course of business (not being new businesses or
 vessels);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the incurrence of
 liabilities in the ordinary course of its business;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any loan or credit
 not otherwise prohibited under this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 pursuant to any
 Building Contract Documents to which it is party.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 27.10

 	
  

 	
 Reduction
 of capital

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not redeem or purchase or otherwise reduce any of its equity or any other
 share capital or any warrants or any uncalled or unpaid liability in respect
 of any of them or reduce the amount (if any) for the time being standing to
 the credit of its share premium account or capital redemption or other
 undistributable reserve in any manner.

 
	
  

 	
  

 	
  

 
	
 27.11

 	
  

 	
 Increase
 in capital

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not (and it is hereby undertaken by the Borrower that none of the Guarantors
 shall) issue shares or other equity interests to anyone in a manner that,
 prior to an IPO, permits a Change of Control or following an IPO, permits an
 IPO Change of Control.

 
	
  

 	
  

 	
  

 
	
 27.12

 	
  

 	
 Distributions
 and other payments

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall
 not:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 declare or pay
 (including by way of set-off, combination of accounts or otherwise) any
 dividend or redeem or make any other distribution or payment (whether in cash
 or in specie), including any interest and/or unpaid dividends, in respect of
 its equity or any other share capital or any warrants for the time being in
 issue; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 make any payment
 (including by way of set-off, combination of accounts or otherwise) by way of
 interest, or repayment, redemption, purchase or other payment, in respect of
 any shareholder loan, loan stock or similar instrument;

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 except to its
 Holding Company and provided no Default is continuing.

 
	
  

 	
  

 	
  

 
	
 28

 	
  

 	
 Events
 of Default

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of the events
 or circumstances set out in clauses 28.1 to 28.21 is an Event of Default.

 
	
  

 	
  

 	
  

 
	
 28.1

 	
  

 	
 Non-payment

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 An Obligor does
 not pay on the due date any amount payable pursuant to a Finance Document at
 the place at and in the currency in which it is expressed to be payable
 provided however that no Event of Default shall occur if a Disruption Event
 has occurred and such payment is made within three Business Days of the due
 date.

 
	
  

 	
  

 	
  

 
	
 28.2

 	
  

 	
 Value
 of security

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower does
 not comply with clause 24 (Minimum security value).

 
	
  

 	
  

 	
  

 
	
 28.3

 	
  

 	
 Insurance

 
	
  

 	
  

 	
  

 
	
 28.3.1

 	
  

 	
 The Insurances of
 the Ship are not placed and kept in force in the manner required by clause 23
 (Insurance).

 
	
  

 	
  

 	
  

 
	
 28.3.2

 	
  

 	
 Any insurer
 either:

 

65

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 cancels any such
 Insurances and such Insurances are not immediately replaced by the Borrower
 to the full satisfaction of the Lenders; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 disclaims
 liability under them by reason of any mis-statement or failure or default by
 any person.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.4

 	
  

 	
 Other
 obligations

 
	
  

 	
  

 	
  

 
	
 28.4.1

 	
  

 	
 An Obligor does
 not comply with any provision of the Finance Documents (other than those
 referred to in clauses 28.1 (Non-payment), 28.2 (Value of security) and
 28.3 (Insurance)).

 
	
  

 	
  

 	
  

 
	
 28.4.2

 	
  

 	
 No Event of
 Default under clause 28.4.1 above will occur if the Agent (acting on the
 instructions of the Lenders) considers that the failure to comply is capable
 of remedy and the failure is remedied within ten Business Days of the Agent
 giving notice to the Borrower.

 
	
  

 	
  

 	
  

 
	
 28.5

 	
  

 	
 Financial
 Covenants

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 GasLog or a
 Counter Guarantor does not comply with any financial covenant pursuant to
 clause 5 of the GasLog Guarantee (Financial covenants) or, as the case may
 be, clause 5 of a Counter Guarantee (Financial covenants) or makes or is
 deemed to have made a representation or statement pursuant to clause 5 of the
 GasLog Guarantee (Financial covenants) or, as the case may
 be, clause 5 of a Counter Guarantee (Financial covenants), which is or proves
 to have been incorrect or misleading in any material respect when made or
 deemed to be made.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.6

 	
  

 	
 Misrepresentation

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any representation
 or statement made or deemed to be made by an Obligor in the Finance Documents
 or any other document delivered by or on behalf of any Obligor under or in
 connection with any Finance Document (including, without limitation, the
 Counter Guarantor Representations Letter) is or proves to have been incorrect
 or misleading in any material respect when made or deemed to be made.

 
	
  

 	
  

 	
  

 
	
 28.7

 	
  

 	
 Cross
 default

 
	
  

 	
  

 	
  

 
	
 28.7.1

 	
  

 	
 Any Financial
 Indebtedness of any Obligor is not paid when due nor within any originally
 applicable grace period.

 
	
  

 	
  

 	
  

 
	
 28.7.2

 	
  

 	
 Any Financial
 Indebtedness of any Obligor is declared to be or otherwise becomes due and
 payable prior to its specified maturity as a result of an event of default
 (however described).

 
	
  

 	
  

 	
  

 
	
 28.7.3

 	
  

 	
 The counterparty
 to a Treasury Transaction entered into by any Obligor becomes entitled to
 terminate that Treasury Transaction early by reason of an event of default
 (however described).

 
	
  

 	
  

 	
  

 
	
 28.7.4

 	
  

 	
 Any creditor of
 any Obligor becomes entitled to declare any Financial Indebtedness of that
 Obligor due and payable prior to its specified maturity as a result of an
 event of default (however described).

 
	
  

 	
  

 	
  

 
	
 28.7.5

 	
  

 	
 No Event of
 Default will occur under this clause 28.7 if the aggregate amount of
 Financial Indebtedness falling within clauses 28.7.1 to 28.7.4 above is less
 than $5,000,000 in respect of each of the Counter Guarantors and the
 Guarantors and/or less than $1,000,000 in respect of any other Obilgor.

 
	
  

 	
  

 	
  

 
	
 28.8

 	
  

 	
 Insolvency

 
	
  

 	
  

 	
  

 
	
 28.8.1

 	
  

 	
 An Obligor or the
 Counter Guarantor Subsidiary is unable or admits inability to pay its debts
 as they fall due, suspends making payments on any of its debts or, by reason
 of actual financial difficulties, commences negotiations with one or more of
 its creditors with a view to rescheduling any of its indebtedness.

 

66

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.8.2

 	
  

 	
 The value of the
 assets of any Obligor or the Counter Guarantor Subsidiary is less than its
 liabilities (taking into account contingent and prospective liabilities).

 
	
  

 	
  

 	
  

 
	
 28.8.3

 	
  

 	
 A moratorium is
 declared in respect of any indebtedness of any Obligor or the Counter
 Guarantor Subsidiary. If a moratorium occurs, the ending of the moratorium
 will not remedy any Event of Default caused by that moratorium.

 
	
  

 	
  

 	
  

 
	
 28.9 

 	
  

 	
Insolvency
proceedings 

 
	
  

 	
  

 	
  

 
	
 28.9.1

 	
  

 	
 Any corporate
 action, legal proceedings or other procedure or step is taken in relation to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the suspension of
 payments, a moratorium of any indebtedness, winding-up, dissolution,
 administration or reorganisation (by way of voluntary arrangement, scheme of
 arrangement or otherwise) of any Obligor or the Counter Guarantor Subsidiary;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 a composition,
 compromise, assignment or arrangement with any creditor of any Obligor or the
 Counter Guarantor Subsidiary;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the appointment of
 a liquidator, receiver, administrator, administrative receiver, compulsory
 manager or other similar officer in respect of any Obligor or the Counter
 Guarantor Subsidiary or any of its assets (including the directors of any
 Obligor or the Counter Guarantor Subsidiary requesting a person to appoint
 any such officer in relation to it or any of its assets); or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 enforcement of any
 Security Interest over any assets of any Obligor or the Counter Guarantor
 Subsidiary,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or any analogous
 procedure or step is taken in any jurisdiction.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.9.2

 	
  

 	
 Clause 28.9.1
 shall not apply to any winding-up petition (or analogous procedure or step)
 which is frivolous or vexatious and is discharged, stayed or dismissed within
 seven days of commencement or, if earlier, the date on which it is
 advertised.

 
	
  

 	
  

 	
  

 
	
 28.10

 	
  

 	
 Creditors’
 process

 
	
  

 	
  

 	
  

 
	
 28.10.1

 	
  

 	
 Any expropriation,
 attachment, sequestration, distress, execution or analogous process affects
 any asset or assets of any Obligor (having an aggregate value equal to or in
 excess of $5,000,000 in respect of the Counter Guarantors and the Guarantors
 and $1,000,000 in respect of any other Obligor) and is not discharged within
 seven days.

 
	
  

 	
  

 	
  

 
	
 28.10.2

 	
  

 	
 Any judgment or
 order (for an amount in excess of $5,000,000 in respect of the Counter
 Guarantors and the Guarantors and $1,000,000 in respect of any other Obligor)
 is made against any Obligor and is not stayed or complied with within thirty
 days.

 
	
  

 	
  

 	
  

 
	
 28.11

 	
  

 	
 Unlawfulness
 and invalidity

 
	
  

 	
  

 	
  

 
	
 28.11.1

 	
  

 	
 It is or becomes
 unlawful for an Obligor to perform any of its obligations under the Finance
 Documents or any Security Interest created or expressed to be created or
 evidenced by the Security Documents ceases to be effective.

 
	
  

 	
  

 	
  

 
	
 28.11.2

 	
  

 	
 Any obligation or
 obligations of any Obligor under any Finance Documents are not (subject to
 the Legal Reservations) or cease to be legal, valid, binding or enforceable
 and the cessation individually or cumulatively materially and adversely
 affects the interests of the Lenders under the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 28.11.3

 	
  

 	
 Any Finance
 Document or any Security Interest created or expressed to be created or
 evidenced by the Security Documents ceases to be in full force and effect or
 is alleged by a party to it (other than a Finance Party) to be ineffective
 for any reason.

 

67

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.11.4

 	
  

 	
 Any Security
 Document does not create legal, valid, binding and enforceable security over
 the assets charged under that Security Document or the ranking or priority of
 such security is adversely affected.

 
	
  

 	
  

 	
  

 
	
 28.12

 	
  

 	
 Cessation
 of business

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Obligor
 suspends or ceases to carry on (or threatens to suspend or cease to carry on)
 all or a material part of its business.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.13

 	
  

 	
 Expropriation

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The authority or
 ability of any Obligor to conduct its business is limited or wholly or
 substantially curtailed by any seizure, expropriation, nationalisation,
 intervention, restriction or other action by or on behalf of any
 governmental, regulatory or other authority or other person in relation to
 any Obligor or any of its assets.

 
	
  

 	
  

 	
  

 
	
 28.14 

 	
  

 	
 Repudiation and
rescission of Finance Documents 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 An Obligor
 repudiates a Finance Document or evidences an intention to rescind a Finance
 Document.

 
	
  

 	
  

 	
  

 
	
 28.15

 	
  

 	
 Litigation

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any litigation,
 alternative dispute resolution, arbitration or administrative proceeding is
 taking place, or threatened against any Obligor or any of its assets, rights
 or revenues, and which, if adversely determined, might reasonably be expected
 to have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 28.16

 	
  

 	
 Material
 Adverse Effect

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Environmental
 Incident or other event or circumstance or series of events (including any
 change of law) occurs which the Majority Lenders reasonably believe has, or
 is reasonably expected to have, a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 28.17

 	
  

 	
 Security
 enforceable

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Security
 Interest (other than a Permitted Maritime Lien) in respect of Charged
 Property becomes enforceable.

 
	
  

 	
  

 	
  

 
	
 28.18

 	
  

 	
 Arrest
 of Ship

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship is
 arrested, confiscated, seized, taken in execution, impounded, forfeited,
 detained in exercise or purported exercise of any possessory lien or other
 claim and the Borrower fails to procure the release of the Ship within a period
 of 15 days thereafter (or such longer period as may be approved).

 
	
  

 	
  

 	
  

 
	
 28.19

 	
  

 	
 Ship
 registration

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with
 approval, the registration of the Ship under the laws and flag of its Flag
 State is cancelled or terminated or, where applicable, not renewed or, if the
 Ship is only provisionally registered on the date of the Mortgage, the Ship
 is not permanently registered under such laws within 90 days of such date.

 
	
  

 	
  

 	
  

 
	
 28.20

 	
  

 	
 Political
 risk

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Flag State or
 any Relevant Jurisdiction of an Obligor becomes involved in hostilities or
 civil war or there is a seizure of power in the Flag State or any Relevant
 Jurisdiction by unconstitutional means if, in any such case, such event, in
 the reasonable opinion of the Agent, has or is reasonably to have, a Material
 Adverse Effect and, within 15 days of notice from Agent to do so (or such
 longer period as may be approved), such action as the Agent may require to
 ensure that such circumstances will not have such an effect has not been
 taken by the Borrower.

 

68

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.21

 	
  

 	
 Charter
 termination

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with
 approval, the Charter is cancelled or rescinded or (except as a result of it
 being a Total Loss) frustrated or the Ship is withdrawn from service under
 the Charter before the time the Charter was scheduled to expire provided
 however that no Event of Default shall occur under this clause if (a) within
 five Business Days of such cancellation, rescission, frustration or
 withdrawal the Borrower shall have paid the sum of $20,000,000 to the Reserve
 Account (which may, notwithstanding clause 26.4 (Reserve Account) only be released if approved) and (b)
 within six months after such cancellation, rescission, frustration or
 withdrawal the Borrower shall have entered into an approved charter commitment
 and executed a Security Interest in respect of such charter commitment in an
 approved form and provided any conditions precedent of the nature described
 in Schedule 3 required by the Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.22

 	
  

 	
 Change
 of Control

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.22.1

 	
  

 	
 Before an IPO has
 been completed, a Change of Control occurs.

 
	
  

 	
  

 	
  

 
	
 28.22.2

 	
  

 	
 After an IPO has
 been completed, an IPO Change of Control occurs and the Borrower fails to
 prepay the Loan in full and all other amounts accrued or outstanding under
 the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.22.3

 	
  

 	
 At any time:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the Borrower
 ceases to be a wholly-owned subsidiary of GasLog Carriers; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 GasLog Carriers
 ceases to be a wholly owned subsidiary of GasLog.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 28.23

 	
  

 	
 Acceleration

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 On and at any time
 after the occurrence of an Event of Default which is continuing the Agent
 may, and shall if so directed by the Lenders, by notice to the Borrower:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 cancel the Total
 Commitments at which time they shall immediately be cancelled; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 declare that all
 or part of the Loan, together with accrued interest, and all other amounts
 accrued or outstanding under the Finance Documents be immediately due and
 payable, at which time they shall become immediately due and payable; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 declare that all
 or part of the Loan be payable on demand, at which time it shall immediately
 become payable on demand by the Agent on the instructions of the Lenders;
 and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 declare that no
 withdrawals be made from any Account; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 exercise or direct
 the Security Agent to exercise any or all of its rights, remedies, powers or
 discretions under the Finance Documents.

 

69

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 7 - CHANGES TO PARTIES

 
	
  

 
	
 29

 	
  

 	
 Changes
 to the Lenders

 
	
  

 	
  

 	
  

 
	
 29.1

 	
  

 	
 Assignments
 and transfers by the Lenders

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to this
 clause 29, a Lender (the “Existing Lender”) may assign any of its
 rights to another bank or financial institution or to a trust, fund or other
 entity which is regularly engaged in or established for the purpose of
 making, purchasing or investing in loans, securities or other financial
 assets (the “New Lender”).

 
	
  

 	
  

 	
  

 
	
 29.2

 	
  

 	
 Conditions
 of assignment

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.2.1

 	
  

 	
 The consent of the
 Borrower is required for an assignment by a Lender, unless the assignment is
 to another Lender or an Affiliate of a Lender or an Event of Default is
 continuing. The Agent will immediately advise the Borrower of the assignment.

 
	
  

 	
  

 	
  

 
	
 29.2.2

 	
  

 	
 The Borrower’s
 consent may not be unreasonably withheld or delayed and will be deemed to have
 been given five Business Days after the Lender has requested consent unless
 consent is expressly refused within that time. The Borrower shall not be
 entitled to refuse or withhold consent solely because an assignment may
 result in an increase to the Mandatory Cost.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.2.3

 	
  

 	
 An assignment will
 only be effective:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 on receipt by the
 Agent of written confirmation from the New Lender (in form and substance
 satisfactory to the Agent) that the New Lender will assume the same
 obligations to the other Finance Parties and the other Finance Parties as it
 would have been under if it was an Original Lender;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 on the New Lender
 entering into any documentation required for it to accede as a party to any
 Security Document to which the Original Lender is a party in its capacity as
 a Lender;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 if at the time
 when an assignment takes effect more than one Utilisation is outstanding, the
 assignment of an Existing Lender’s participation in the Utilisations (if any)
 under the Facility shall take effect in respect of the same fraction of each
 such Utilisation;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 on the performance
 by the Agent of all “know your customer” or other checks relating to any
 person that it is required to carry out in relation to such assignment to a
 New Lender, the completion of which the Agent shall promptly notify to the
 Lender and the New Lender; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 if that Existing
 Lender assigns equal fractions of its Commitment and participation in the
 Utilisations (if any) under the Facility.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.2.4

 	
  

 	
 Each New Lender,
 by executing the relevant Transfer Certificate, confirms, for the avoidance
 of doubt, that the Agent has authority to execute on its behalf any amendment
 or waiver that has been approved by or on behalf of the requisite Lender or
 Lenders in accordance with this Agreement on or prior to the date on which
 the transfer becomes effective in accordance with this Agreement and that it
 is bound by that decision to the same extent as the Existing Lender would
 have been had it remained a Lender.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.3

 	
  

 	
 Fee

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The New Lender
 shall, on the date upon which an assignment takes effect, pay to the Agent
 (for its own account) a fee of $3,000.

 

70

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.4

 	
  

 	
 Limitation
 of responsibility of Existing Lenders

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.4.1

 	
  

 	
 Unless expressly
 agreed to the contrary, an Existing Lender makes no representation or
 warranty and assumes no responsibility to a New Lender for:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the legality,
 validity, effectiveness, adequacy or enforceability of the Finance Documents
 or any other documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the financial
 condition of any Obligor;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the performance
 and observance by any Obligor or any other person of its obligations under
 the Finance Documents or any other documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 the application of
 any Basel 2 Regulation to the transactions contemplated by the Finance
 Documents; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 the accuracy of
 any statements (whether written or oral) made in or in connection with any
 Finance Document or any other document,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and any representations
 or warranties implied by law are excluded.

 
	
  

 	
  

 	
  

 
	
 29.4.2

 	
  

 	
 Each New Lender
 confirms to the Existing Lender and the other Finance Parties and the Finance
 Parties that it:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 has made (and
 shall continue to make) its own independent investigation and assessment of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (i)

 	
 the financial
 condition and affairs of the Obligors and their related entities in
 connection with its participation in this Agreement; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (ii)

 	
 the application of
 any Basel 2 Regulation to the transactions contemplated by the Finance
 Documents,

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 and has not relied
 exclusively on any information provided to it by the Existing Lender or any
 other Finance Party in connection with any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 will continue to
 make its own independent appraisal of the application of any Basel 2
 Regulation to the transactions contemplated by the Finance Documents; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 will continue to
 make its own independent appraisal of the creditworthiness of each Obligor
 and its related entities whilst any amount is or may be outstanding under the
 Finance Documents or any Commitment is in force.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.4.3

 	
  

 	
 Nothing in any
 Finance Document obliges an Existing Lender to:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 accept a
 re-assignment from a New Lender of any of the rights assigned under this
 clause 29 (Changes to the Lenders); or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 support any losses
 directly or indirectly incurred by the New Lender by reason of the
 non-performance by any Obligor of its obligations under the Finance Documents
 or by reason of the application of any Basel 2 Regulation to the transactions
 contemplated by the Finance Documents or otherwise.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.5

 	
  

 	
 Procedure
 for transfer

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.5.1

 	
  

 	
 Subject to the
 conditions set out in clause 29.2 (Conditions of assignment) an assignment
 is effected in accordance with clause 29.5.2 below when (a) the Agent
 executes an otherwise duly completed Transfer Certificate and (b) the Agent
 executes any document required under clause 29.2.3 which it may be necessary
 for it to execute in each case delivered to it by the Existing Lender and the
 New Lender duly executed by them and, in the case of any such other

 

71

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 document, any
 other relevant person. The Agent shall, as soon as reasonably practicable
 after receipt by it of a Transfer Certificate and any such other document
 each duly completed, appearing on its face to comply with the terms of this
 Agreement and delivered in accordance with the terms of this Agreement,
 execute that Transfer Certificate and such other document. The Obligors and
 the other Finance Parties irrevocably authorise the Agent to execute any
 Transfer Certificate on their behalf without any consultations with them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.5.2

 	
  

 	
 On the Transfer
 Date:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 to the extent that
 in the Transfer Certificate the Existing Lender seeks to be released from its
 obligations under the Finance Documents, the Existing Lender shall be
 released from further obligations towards the Obligors and the other Finance
 Parties under the Finance Documents and rights of the Obligors and the other
 Finance Parties against the Existing Lender under the Finance Documents shall
 be cancelled (being the Discharged Obligations) (but the
 obligations owed by the Obligors under the Finance Documents shall not be
 released);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the New Lender
 shall assume obligations towards each of the Obligors who are a Party and/or
 the Obligors and the other Finance Parties shall acquire rights against the
 New Lender which differ from the Discharged Rights and Obligations only
 insofar as the New Lender has assumed and/or the Obligors and the other
 Finance Parties acquired the same in place of the Existing Lender;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the other Finance
 Parties and the New Lender shall acquire the same rights and assume the same
 obligations between themselves as they would have acquired and assumed had
 the New Lender been an Original Lender with the rights and/or obligations
 acquired or assumed by it as a result of the transfer and to that extent the
 Security Agent, Existing Lender and the other Finance Parties shall each be
 released from further obligations to each other under the Finance Documents;
 and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 the New Lender
 shall become a Party to the Finance Documents as a “Lender” for the purposes
 of all the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.6

 	
  

 	
 Copy
 of Transfer Certificate to Borrower

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall,
 as soon as reasonably practicable after it has executed a Transfer
 Certificate and any other document required under clause 29.2.3, send a copy
 of that Transfer Certificate and such documents to the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 29.7

 	
  

 	
 Disclosure
 of information

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Lender may
 disclose to any of its Affiliates and, in relation to (a) and (b) below, with
 the consent of the Borrower (such consent not to be unreasonably withheld or
 delayed), to any other person:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 to (or through)
 whom that Lender assigns (or may potentially assign) all or any of its rights
 and obligations under the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 with (or through)
 whom that Lender enters into (or may potentially enter into) any
 sub-participation in relation to, or any other transaction under which
 payments are to be made by reference to, the Finance Documents or any
 Obligor; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 to whom, and to
 the extent that, information is required to be disclosed by any applicable
 law or regulation,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and any Finance
 Party may disclose to a rating agency or its professional advisers or (with
 the consent of the Borrower) any other person, any information about any
 Obligor, each Group and the Finance Documents as that Finance Party shall
 consider appropriate.

 

72

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30

 	
  

 	
 Changes
 to the Obligors

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor may
 assign any of its rights or transfer any of its rights or obligations under
 the Finance Documents.

 

73

SECTION 8 - THE FINANCE PARTIES

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31

 	
  

 	
 Roles
 of Agent, Security Agent and Arranger

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.1

 	
  

 	
 Appointment
 of the Agent

 
	
  

 	
  

 	
  

 
	
 31.1.1

 	
  

 	
 Each other Finance
 Party (other than the Security Agent) appoints the Agent to act as its agent
 under and in connection with the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 31.1.2

 	
  

 	
 Each such other
 Finance Party authorises the Agent:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 to exercise the
 rights, powers, authorities and discretions specifically given to the Agent
 under or in connection with the Finance Documents together with any other
 incidental rights, powers, authorities and discretions; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 to execute each of
 the Security Documents and all other documents that may be approved by the
 Lenders for execution by it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.2

 	
  

 	
 Duties
 of the Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.2.1

 	
  

 	
 The Agent shall
 promptly forward to a Party the original or a copy of any document which is
 delivered to the Agent for that Party by any other Party.

 
	
  

 	
  

 	
  

 
	
 31.2.2

 	
  

 	
 Without prejudice
 to clause 29.6 (Copy of Transfer Certificate to Borrower), clause 31.2.1
 shall not apply to any Transfer Certificate.

 
	
  

 	
  

 	
  

 
	
 31.2.3

 	
  

 	
 Except where a
 Finance Document specifically provides otherwise, the Agent is not obliged to
 review or check the adequacy, accuracy or completeness of any document it
 forwards to another Party.

 
	
  

 	
  

 	
  

 
	
 31.2.4

 	
  

 	
 If the Agent receives
 notice from a Party referring to this Agreement, describing a Default and
 stating that the circumstance described is a Default, it shall promptly
 notify the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 31.2.5

 	
  

 	
 If the Agent is
 aware of the non-payment of any principal, interest, commitment fee or other
 fee payable to a Finance Party (other than the Agent or an Arranger or the
 Security Agent for their own account) under this Agreement it shall promptly
 notify the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 31.2.6

 	
  

 	
 The Agent’s duties
 under the Finance Documents are solely mechanical and administrative in
 nature.

 
	
  

 	
  

 	
  

 
	
 31.3

 	
  

 	
 Role
 of the Arrangers

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as
 specifically provided in the Finance Documents, the Arrangers have no
 obligations of any kind to any other Party under or in connection with any
 Finance Document or the transactions contemplated by the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 31.4

 	
  

 	
 No
 fiduciary duties

 
	
  

 	
  

 	
  

 
	
 31.4.1

 	
  

 	
 Nothing in this
 Agreement constitutes the Agent or an Arranger as a trustee or fiduciary of
 any other person.

 
	
  

 	
  

 	
  

 
	
 31.4.2

 	
  

 	
 None of the Agent,
 the Security Agent or any Arranger shall be bound to account to any Lender
 for any sum or the profit element of any sum received by it for its own
 account or have any obligations to the other Finance Parties beyond those
 expressly stated in the Finance Documents.

 

74

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.5

 	
  

 	
 Business with the
 Group

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent, the Security Agent and any Arranger may accept deposits from, lend
 money to and generally engage in any kind of banking or other business with
 any Obligor or their Affiliates.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6

 	
  

 	
 Rights and discretions of the Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.1

 	
  

 	
 The
 Agent may rely on:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any
 representation, notice or document believed by it to be genuine, correct and
 appropriately authorised; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any
 statement made by a director, authorised signatory or employee of any person
 regarding any matters which may reasonably be assumed to be within his or her
 knowledge or within his or her power to verify.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.2

 	
  

 	
 The
 Agent may assume (unless it has received notice to the contrary in its
 capacity as agent for the other Finance Parties) that:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 no
 Default has occurred (unless it has actual knowledge of a Default arising
 under clause 28.1 (Non-payment));

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any
 right, power, authority or discretion vested in any Party or the Majority Lenders
 has not been exercised; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 any
 notice or request made by the Borrower (other than a Utilisation Request or
 Selection Notice) is made on behalf of and with the consent and knowledge of
 all the Obligors.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.3

 	
  

 	
 The
 Agent may engage, pay for and rely on the advice or services of any lawyers,
 accountants, surveyors or other experts in the conduct of its obligations and
 responsibilities under the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.4

 	
  

 	
 The
 Agent may act in relation to the Finance Documents through its personnel and
 agents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.5

 	
  

 	
 The
 Agent may disclose to any other Party any information it reasonably believes
 it has received as agent under this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.6

 	
  

 	
 The
 Agent is not obliged to disclose to any Finance Party any details of the rate
 notified to the Agent by any Lender or the identity of any such Lender for
 the purposes of clause 10.2.1(b) (Market Disruption).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.7

 	
  

 	
 Notwithstanding
 any other provision of any Finance Document to the contrary, neither the
 Agent nor any Arranger is obliged to do or omit to do anything if it would or
 might in its reasonable opinion constitute a breach of any law or regulation
 or a breach of a fiduciary duty or duty of confidentiality. The Agent and any
 Arranger may do anything which in its opinion, is necessary or desirable to
 comply with any law or regulation of any jurisdiction.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.6.8

 	
  

 	
 Without
 prejudice to the generality of clause 31.6.7, the Agent shall be entitled (but not
 obliged) to disclose the identity of a Defaulting Lender to the other Finance
 Parties and the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.7

 	
  

 	
 Lenders’ instructions

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.7.1

 	
  

 	
 Unless
 a contrary indication appears in a Finance Document, the Agent shall:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 exercise
 any right, power, authority or discretion vested in it as Agent (including
 giving instructions to the Security Agent) in accordance with any
 instructions given to it by the Lenders (or, if so instructed by the Lenders,
 refrain from exercising any right, power, authority or discretion vested in
 it as Agent); and

 

75

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 not
 be liable for any act (or omission) if it acts (or refrains from taking any
 action) in accordance with an instruction of the Lenders.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.7.2

 	
  

 	
 Unless
 a contrary indication appears in a Finance Document, any instructions given
 by the Lenders to the Agent (in relation to any right, power, authority or
 discretion vested in it as Agent) shall be binding on all the Finance Parties
 (other than the Security Agent).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.7.3

 	
  

 	
 The
 Agent may refrain from acting in accordance with the instructions of the
 Majority Lenders (if applicable in accordance with the Finance Documents) or,
 if appropriate, the Lenders until it has received such security as it may
 require for any cost, loss or liability (together with any associated VAT)
 which it may incur in complying with the instructions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.7.4

 	
  

 	
 In
 the absence of, or while awaiting, instructions from the Majority Lenders (if
 applicable in accordance with the Finance Documents) or, if appropriate, the
 Lenders, the Agent may act (or refrain from taking action) as it considers to
 be in the best interest of the Finance Parties.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.7.5

 	
  

 	
 The
 Agent is not authorised to act on behalf of a Lender (without first obtaining
 that Lender’s consent) in any legal or arbitration proceedings relating to
 any Finance Document. This clause 31.7.5 shall not apply to any legal or
 arbitration proceeding relating to the perfection, preservation or protection
 of rights under the Security Documents or enforcement of the Security
 Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.7.6

 	
  

 	
 Neither
 the Agent nor any Arranger shall be obliged to request any certificate,
 opinion or other information under clause 18 (Information undertakings)
 unless so required in writing by a Lender, in which case the Agent shall
 promptly make the appropriate request of the Borrower if such request would
 be in accordance with the terms of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.8

 	
  

 	
 Responsibility for documentation and other matters

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Neither
 the Agent nor any Arranger:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 is
 responsible for the adequacy, accuracy and/or completeness of any information
 (whether oral or written) supplied by the Agent, any Arranger, an Obligor or
 any other person given in or in connection with any Finance Document or the
 transactions contemplated in the Finance Documents or of any representations
 in any Finance Document or of any copy of any document delivered under any
 Finance Document (including, without limitation, the Counter Guarantor
 Representations Letter);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 is
 responsible for the legality, validity, effectiveness, adequacy or
 enforceability of any Finance Document or any Charter Document or Building
 Contract Document or any other agreement, arrangement or document entered
 into, made or executed in anticipation of or in connection with any Finance
 Document or any Charter Document or Building Contract Document; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 is
 responsible for any determination as to whether any information provided or
 to be provided to any Finance Party is non-public information the use of
 which may be regulated or prohibited by applicable law or regulation relating
 to insider dealing or otherwise;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 is
 responsible for the application of any Basel 2 Regulation to the transactions
 contemplated by the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 is
 responsible for any loss to the Trust Property arising in consequence of the
 failure, depreciation or loss of any Charged Property or any investments made
 or retained in good faith or by reason of any other matter or thing;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (f)

 	
 is
 obliged to account to any person for any sum or the profit element of any sum
 received by it for its own account;

 

76

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (g)

 	
 is
 responsible for the failure of any Obligor or any other party to perform its
 obligations under any Finance Document or Charter Document or Building
 Contract Document or the financial condition of any such person;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (h)

 	
 is
 responsible to ascertain whether all deeds and documents which should have
 been deposited with it (or the Security Agent) under or pursuant to any of
 the Security Documents have been so deposited;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 is
 responsible to investigate or make any enquiry into the title of any Obligor
 to any of the Charged Property or any of its other property or assets;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (j)

 	
 is
 responsible for the failure to register any of the Security Documents with the
 Registrar of Companies or any other public office;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (k)

 	
 is
 responsible for the failure to register any of the Security Documents in
 accordance with the provisions of the documents of title of any Obligor to
 any of the Charged Property;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (l)

 	
 is
 responsible for the failure to take or require any Obligor to take any steps
 to render any of the Security Documents effective as regards property or
 assets outside England or Wales or to secure the creation of any ancillary
 charge under the laws of the jurisdiction concerned; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (m)

 	
 is
 (unless it is the same entity as the Security Agent) responsible on account
 of the failure of the Security Agent to perform or discharge any of its
 duties or obligations under the Security Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.9

 	
  

 	
 Exclusion of liability

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.9.1

 	
  

 	
 Without
 limiting clause 31.9.2 (and without prejudice to the provisions of clause 34.9 (Disruption
 to Payment Systems etc.)), the Agent will not be liable for any
 action taken by it under or in connection with any Finance Document, unless
 directly caused by its gross negligence or wilful misconduct.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.9.2

 	
  

 	
 No
 Party (other than the Agent) may take any proceedings against any officer,
 employee or agent of the Agent in respect of any claim it might have against
 the Agent or in respect of any act or omission of any kind by that officer,
 employee or agent in relation to any Finance Document any officer, employee
 or agent of the Agent may rely on this clause subject to clause 1.3 and the
 provisions of the Third Parties Act.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.9.3

 	
  

 	
 The
 Agent will not be liable for any delay (or any related consequences) in
 crediting an account with an amount required under the Finance Documents to
 be paid by the Agent if the Agent has taken all necessary steps as soon as
 reasonably practicable to comply with the regulations or operating procedures
 of any recognised clearing or settlement system used by the Agent for that
 purpose.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.9.4

 	
  

 	
 Nothing
 in this Agreement shall oblige the Agent or any Arranger to carry out any
 “know your customer” or other checks in relation to any person on behalf of
 any Lender and each Lender confirms to the Agent and the Arrangers that it is
 solely responsible for any such checks it is required to carry out and that
 it may not rely on any statement in relation to such checks made by the Agent
 or any Arranger.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.10

 	
  

 	
 Lenders’ indemnity to the Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Lender shall (in proportion to its share of the Total Commitments or, if the
 Total Commitments are then zero, to its share of the Total Commitments
 immediately prior to their reduction to zero) indemnify the Agent, within
 three Business Days of demand, against any cost, loss or liability incurred
 by the Agent (otherwise than by reason of the Agent’s gross negligence or
 wilful misconduct) including the costs of any person engaged in accordance
 with clause 31.6.3 (Rights and discretions of the Agent) and any Receiver in
 acting as its agent under the 

 

77

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Finance
 Documents (unless the Agent has been reimbursed by an Obligor pursuant to a
 Finance Document or out of the Trust Property).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11

 	
  

 	
 Resignation of the Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11.1

 	
  

 	
 The
 Agent may resign and appoint one of its Affiliates as successor by giving
 notice to the Lenders, the Security Agent and the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11.2

 	
  

 	
 Alternatively
 the Agent may resign by giving notice to the other Finance Parties and the
 Borrower, in which case the Majority Lenders (after consultation with the
 Borrower) may appoint a successor Agent acting through an office in the
 United Kingdom.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11.3

 	
  

 	
 If
 the Majority Lenders have not appointed a successor Agent in accordance with
 clause 31.11.2 above within 20 days after notice of resignation was given, the
 Agent (after consultation with the Borrower) may appoint a successor Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11.4

 	
  

 	
 The
 retiring Agent shall, at its own cost, make available to the successor Agent
 such documents and records and provide such assistance as the successor Agent
 may reasonably request for the purposes of performing its functions as Agent
 under the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11.5

 	
  

 	
 The
 Agent’s resignation notice shall only take effect upon the appointment of a
 successor.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11.6

 	
  

 	
 Upon
 the appointment of a successor, the retiring Agent shall be discharged from
 any further obligation in respect of the Finance Documents but shall remain
 entitled to the benefit of this clause 31. Its successor and each of the other
 Parties shall have the same rights and obligations amongst themselves as they
 would have had if such successor had been an original Party.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.11.7

 	
  

 	
 After
 consultation with the Borrower, the Majority Lenders may, by notice to the
 Agent, require it to resign in accordance with clause 31.11.2. In this event, the
 Agent shall resign in accordance with clause 31.11.2.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.12

 	
  

 	
 Confidentiality

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.12.1

 	
  

 	
 In
 acting as agent for the Finance Parties, the Agent shall be regarded as
 acting through its department, division or team directly responsible for the
 management of the Finance Documents which shall be treated as a separate
 entity from any other of its divisions, departments or teams.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.12.2

 	
  

 	
 If
 information is received by another division or department of the Agent, it
 may be treated as confidential to that division or department and the Agent
 shall not be deemed to have notice of it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.12.3

 	
  

 	
 Notwithstanding
 any other provision of any Finance Document to the contrary, neither the
 Agent, nor any Arranger is obliged to disclose to any other person (a) any
 confidential information or (b) any other information if the disclosure would
 or might in its reasonable opinion constitute a breach of any law or a breach
 of a fiduciary duty.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.13

 	
  

 	
 Relationship with the Lenders

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.13.1

 	
  

 	
 The
 Agent may treat each Lender as a Lender, entitled to payments under this
 Agreement and acting through its Facility Office unless it has received not
 less than five Business Days prior notice from that Lender to the contrary in
 accordance with the terms of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.13.2

 	
  

 	
 Each
 Lender shall supply the Agent with any information required by the Agent in
 order to calculate the Mandatory Cost in accordance with Schedule 6 (Mandatory
 Cost formulae).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.13.3

 	
  

 	
 Each
 Lender shall supply the Agent with any information that the Agent may
 reasonably specify as being necessary or desirable to enable the Agent or the
 Security Agent to perform its functions as Agent or Security Agent. Each
 Lender shall deal with the Security Agent exclusively through the Agent and
 shall not deal directly with the Security Agent.

 

78

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.14

 	
  

 	
 Credit appraisal by the Lenders

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Without
 affecting the responsibility of any Obligor for information supplied by it or
 on its behalf in connection with any Finance Document, each Lender confirms
 to each other Finance Party that it has been, and will continue to be, solely
 responsible for making its own independent appraisal and investigation of all
 risks arising under or in connection with any Finance Document including but
 not limited to:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the
 financial condition, status and nature of each Obligor;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the
 legality, validity, effectiveness, adequacy or enforceability of any Finance
 Document or Charter Document or Building Contract Document and any other
 agreement, arrangement or document entered into, made or executed in
 anticipation of, under or in connection with any Finance Document or Charter
 Document or Building Contract Document;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the
 application of any Basel 2 Regulation to the transactions contemplated by the
 Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 whether
 any Finance Party has recourse, and the nature and extent of that recourse,
 against any Party or any of its respective assets under or in connection with
 any Finance Document, the transactions contemplated by the Finance Documents
 or any other agreement, arrangement or document entered into, made or
 executed in anticipation of, under or in connection with any Finance
 Document;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 the
 adequacy, accuracy and/or completeness of any information provided by the
 Agent, any Party or by any other person under or in connection with any
 Finance Document or Charter Document or Building Contract Document, the
 transactions contemplated by the Finance Documents or any other agreement,
 arrangement or document entered into, made or executed in anticipation of,
 under or in connection with any Finance Document or Charter Document or
 Building Contract Document; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (f)

 	
 the
 right of title of any person to, or the value or sufficiency of, any part of
 the Charged Property, the priority of the Security Documents or the existence
 of any Security Interest affecting the Charged Property.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.15

 	
  

 	
 Reference Banks

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If
 a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of
 which it is an Affiliate) ceases to be a Lender, the Agent shall (in
 consultation with the Borrower) appoint another Lender or an Affiliate of a
 Lender to replace that Reference Bank.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.16

 	
  

 	
 Agent’s management time

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any
 amount payable to the Agent under clause 14.3 (Indemnity to the Agent and the
 Security Agent), clause 16 (Costs and expenses) and clause 31.10 (Lenders’
 indemnity to the Agent) shall include the cost of utilising the
 Agent’s management time or other resources and will be calculated on the
 basis of such reasonable daily or hourly rates as the Agent may notify to the
 Borrower and the Lenders, and is in addition to any fee paid or payable to
 the Agent under clause 11 (Fees).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.17

 	
  

 	
 Deduction from amounts payable by the Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If
 any Party owes an amount to the Agent under the Finance Documents the Agent
 may, after giving notice to that Party, deduct an amount not exceeding that
 amount from any payment to that Party which the Agent would otherwise be
 obliged to make under the Finance Documents and apply the amount deducted in
 or towards satisfaction of the amount owed. For the purposes of the Finance
 Documents that Party shall be regarded as having received any amount so
 deducted.

 

79

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.18

 	
  

 	
 Common parties

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Although
 the Agent and the Security Agent may from time to time be the same entity,
 that entity will have entered into the Finance Documents (to which it is
 party) in its separate capacities as agent for the Finance Parties and (as
 appropriate) security agent and trustee for the Finance Parties. Where any
 Finance Document provides for the Agent or Security Agent to communicate with
 or provide instructions to the other, while they are the same entity, such
 communication or instructions will not be necessary.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.19

 	
  

 	
 Security Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.19.1

 	
  

 	
 Each
 other Finance Party appoints the Security Agent to act as its trustee under
 and in connection with the Security Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.19.2

 	
  

 	
 Each
 other Finance Party authorises the Security Agent:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 to
 exercise the rights, powers, authorities and discretions specifically given
 to the Security Agent under or in connection with the Finance Documents
 together with any other incidental rights, powers, authorities and
 discretions; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 to
 execute each of the Security Documents and all other documents that may be
 approved by the Agent and/or the Majority Lenders for execution by it.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.19.3

 	
  

 	
 The
 Security Agent accepts its appointment under clause 31.19 (Security Agent) as trustee
 of the Trust Property with effect from the date of this Agreement and
 declares that it holds the Trust Property on trust for itself, the other
 Finance Parties (for so long as they are Finance Parties) on and subject to
 the terms set out in clauses 31.19 - 31.27 (inclusive) and the Security Documents to
 which it is a party.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.20

 	
  

 	
 Application of certain clauses to Security Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.20.1

 	
  

 	
 Clauses
 31.6 (Rights and discretions of the Agent),
 31.8 (Responsibility for documentation and
 other matters), 31.9 (Exclusion of
 liability), 31.10 (Lenders’
 indemnity to the Agent), 31.11 (Resignation
 of the Agent), 31.12 (Confidentiality),
 31.13 (Relationship with the Lenders),
 31.14 (Credit appraisal by the Lenders)
 and 31.17 (Deduction from amounts payable by
 the Agent) shall each extend so as to apply to the Security Agent
 in its capacity as such and for that purpose each reference to the “Agent” in
 these clauses shall extend to include in addition a reference to the
 “Security Agent” in its capacity as such.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.20.2

 	
  

 	
 In
 addition, clause 31.11 (Resignation of the Agent) shall, for the
 purposes of its application to the Security Agent pursuant to clause 31.20.1, have
 the following additional sub-clause:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 At
 any time after the appointment of a successor, the retiring Security Agent
 shall do and execute all acts, deeds and documents reasonably required by its
 successor to transfer to it (or its nominee, as it may direct) any property,
 assets and rights previously vested in the retiring Security Agent pursuant
 to the Security Documents and which shall not have vested in its successor by
 operation of law. All such acts, deeds and documents shall be done or, as the
 case may be, executed at the cost of the retiring Security Agent (except
 where the Security Agent is retiring under clause 31.11.7 as extended to it by
 clause 31.20.1, in which case such costs shall be borne by the Lenders (in
 proportion to its share of the Total Commitments or, if the Total Commitments
 are then zero, to its share of the Total Commitments immediately prior to
 their reduction to zero).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.21

 	
  

 	
 Instructions to Security Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.21.1

 	
  

 	
 Unless
 a contrary indication appears in a Finance Document, the Security Agent
 shall:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 exercise
 any right, power, authority or discretion vested in it as Security Agent in
 accordance with any instructions given to it by the Agent (or, if so
 instructed by the 

 

80

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Agent,
 refrain from exercising any right, power, authority or discretion vested in
 it as Security Agent); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 not
 be liable for any act (or omission) if it acts (or refrains from taking any
 action) in accordance with such an instruction of the Agent (the Agent in
 each case acting on the instructions of the Majority Lenders (if applicable
 in accordance with the Finance Documents) or the Lenders.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.21.2

 	
  

 	
 Unless
 a contrary indication appears in a Finance Document, any instructions given
 by the Agent to the Security Agent in accordance with clause 31.21.1 will be
 binding on the Finance Parties.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.21.3

 	
  

 	
 The
 Security Agent may refrain from acting in accordance with the instructions of
 the Agent until it has received such security as it may require for any cost,
 loss or liability (together with any associated VAT) which it may incur in
 complying with the instructions.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.21.4

 	
  

 	
 In
 the absence of, or while awaiting, instructions from the Agent, (including in
 exceptional circumstances where time does not permit the Agent obtaining
 instructions from the Lenders and urgent action is required) the Security
 Agent may act (or refrain from taking action) as it considers to be in the
 best interest of the Finance Parties.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.21.5

 	
  

 	
 The
 Security Agent is not authorised to act on behalf of another Finance Party
 (without first obtaining that Finance Party’s consent) in any legal or
 arbitration proceedings relating to any Finance Document but this is without
 prejudice to clauses 31.21.1 and 31.21.4, including the right to enforce the Security
 Documents in accordance with these clauses.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.22

 	
  

 	
 Order of application

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.22.1

 	
  

 	
 The
 Security Agent agrees to apply the Trust Property in accordance with the
 following respective claims:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 first, as to a sum equivalent
 to the amounts payable to the Security Agent under the Finance Documents
 (excluding any amounts received by the Security Agent pursuant to clause 31.10 (Lenders’
 indemnity to the Agent) as extended to the Security Agent pursuant
 to clause 31.20 (Application of certain clauses to Security Agent)),
 for the Security Agent absolutely;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 secondly, as to a sum
 equivalent to the aggregate amount then due and owing to the other Finance
 Parties under the Finance Documents, for those Finance Parties absolutely,
 and pro-rata to the amounts owing to them under the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 thirdly, until such time as
 the Security Agent is satisfied that all obligations owed to the Finance
 Parties have been irrevocably and unconditionally discharged in full, held by
 the Security Agent on a suspense account for payment of any further amounts
 owing to the Finance Parties under the Finance Documents and further
 application in accordance with this clause 31.22.1 as and when any such amounts
 later fall due;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 fourthly, to such other persons
 (if any) as are legally entitled thereto in priority to the Obligors; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 fifthly, as to the balance (if
 any), for the Obligors by or from whom or from whose assets the relevant
 amounts were paid, received or recovered or other person entitled to them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.22.2

 	
  

 	
 The
 Security Agent shall make each application as soon as is practicable after
 the relevant moneys are received by, or otherwise become available to, it
 save that (without prejudice to any other provision contained in any of the
 Security Documents) the Security Agent (acting on the instructions of the
 Agent) or any receiver or administrator may credit any moneys received by it
 to a suspense account for so long and in such manner as the Security Agent or
 such receiver or administrator may from time to time determine with a view to
 preserving the rights of the 

 

81

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Finance
 Parties or any of them to prove for the whole of their respective claims
 against the Borrower or any other person liable.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.22.3

 	
  

 	
 The
 Security Agent shall obtain a good discharge in respect of the amounts
 expressed to be due to the other Finance Parties as referred to in this
 clause 31.22 by paying such amounts to the Agent for distribution in accordance
 with clause 34 (Payment mechanics).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.23

 	
  

 	
 Perpetuities

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 perpetuity period to the extent applicable to this Agreement and the other
 Finance Documents shall be 80 years from the date of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.24

 	
  

 	
 Powers and duties of the Security Agent as trustee of the
 security

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In
 its capacity as trustee in relation to the Security Documents, the Security
 Agent:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 shall,
 without prejudice to any of the powers, discretions and immunities conferred
 upon trustees by law (and to the extent not inconsistent with the provisions
 of this Agreement or any of the Security Documents), have all the same powers
 and discretions as a natural person acting as the beneficial owner of such
 property and/or as are conferred upon the Security Agent by this Agreement
 and/or any Security Document but so that the Security Agent may only exercise
 such powers and discretions to the extent that it is authorised to do so by
 the provisions of this Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 shall
 (subject to clause 31.22 (Order of application)) be entitled (in
 its own name or in the names of nominees) to invest moneys from time to time
 forming part of the Trust Property or otherwise held by it as a consequence
 of any enforcement of the security constituted by any Finance Document which,
 in the reasonable opinion of the Security Agent, it would not be practicable
 to distribute immediately, by placing the same on deposit in the name or
 under the control of the Security Agent as the Security Agent may think fit
 without being under any duty to diversify the same and the Security Agent
 shall not be responsible for any loss due to interest rate or exchange rate
 fluctuations except for any loss arising from the Security Agent’s gross
 negligence or wilful misconduct;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 may,
 in the conduct of its obligations under and in respect of the Security
 Documents (otherwise than in relation to its right to make any declaration,
 determination or decision), instead of acting personally, employ and pay any
 agent (whether being a lawyer or any other person) to transact or concur in
 transacting any business and to do or concur in doing any acts required to be
 done by the Security Agent (including the receipt and payment of money) and
 on the basis that (i) any such agent engaged in any profession or business
 shall be entitled to be paid all usual professional and other charges for
 business transacted and acts done by him or any partner or employee of his or
 her in connection with such employment and (ii) the Security Agent shall not
 be bound to supervise, or be responsible for any loss incurred by reason of
 any act or omission of, any such agent if the Security Agent shall have
 exercised reasonable care in the selection of such agent; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 may
 place all deeds and other documents relating to the Trust Property which are
 from time to time deposited with it pursuant to the Security Documents in any
 safe deposit, safe or receptacle selected by the Security Agent exercising
 reasonable care or with any firm of solicitors or company whose business
 includes undertaking the safe custody of documents selected by the Security
 Agent exercising reasonable care and may make any such arrangements as it
 thinks fit for allowing Obligors access to, or its solicitors or auditors
 possession of, such documents when necessary or convenient and the Security
 Agent shall not be responsible for any loss incurred in connection with any
 such deposit, access or possession if it has exercised reasonable care in the
 selection of a safe deposit, safe, receptacle or firm of solicitors or
 company (save that it shall take reasonable steps to pursue any person who
 may be liable to it in connection with such loss).

 

82

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.25

 	
  

 	
 All enforcement action through the Security Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 None
 of the other Finance Parties shall have any independent power to enforce any
 of the Security Documents or to exercise any rights, discretions or powers or
 to grant any consents or releases under or pursuant to any of the Security
 Documents or otherwise have direct recourse to the security and/or guarantees
 constituted by any of the Security Documents except through the Security
 Agent. If any Lender is a party to any Security Document it shall promptly
 upon being requested by the Agent to do so grant power of attorney or other sufficient
 authority to the Security Agent to enable the Security Agent to exercise any
 rights, discretions or powers or to grant any consents or releases under such
 Security Document.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.26

 	
  

 	
 Co-operation to achieve agreed priorities of application

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 other Finance Parties shall co-operate with each other and with the Security
 Agent and any receiver or administrator under the Security Documents in
 realising the property and assets subject to the Security Documents and in
 ensuring that the net proceeds realised under the Security Documents after
 deduction of the expenses of realisation are applied in accordance with
 clause 31.22 (Order of application).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.27

 	
  

 	
 Indemnity from Trust Property

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.27.1

 	
  

 	
 In
 respect of all liabilities, costs or expenses for which the Obligors are
 liable under this Agreement, the Security Agent and each Affiliate of the
 Security Agent and each officer or employee of the Security Agent or its
 Affiliate (each an “Indemnified Person”) shall be entitled to
 be indemnified out of the Trust Property in respect of all liabilities,
 damages, costs, claims, charges or expenses whatsoever properly incurred or
 suffered by such Indemnified Person:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in
 the execution or exercise or bona fide purported execution or exercise of the
 trusts, rights, powers, authorities, discretions and duties created or
 conferred by or pursuant to the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 as
 a result of any breach by an Obligor of any of its obligations under any
 Finance Document;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 in
 respect of any Environmental Claim made or asserted against an Indemnified
 Person which would not have arisen if the Finance Documents had not been
 executed; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 in
 respect of any matter or thing done or omitted in any way in accordance with
 the terms of the Finance Documents relating to the Trust Property or the
 provisions of any of the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.27.2

 	
  

 	
 The
 rights conferred by this clause 31.27 are without prejudice to any right to
 indemnity by law given to trustees generally and to any provision of the
 Finance Documents entitling the Security Agent or any other person to an
 indemnity in respect of, and/or reimbursement of, any liabilities, costs or
 expenses incurred or suffered by it in connection with any of the Finance Documents
 or the performance of any duties under any of the Finance Documents. Nothing
 contained in this clause 31.27 shall entitle the Security Agent or any other
 person to be indemnified in respect of any liabilities, damages, costs,
 claims, charges or expenses to the extent that the same arise from such
 person’s own gross negligence or wilful misconduct.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.28

 	
  

 	
 Finance Parties to provide information

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 other Finance Parties shall provide the Security Agent with such written
 information as it may reasonably require for the purposes of carrying out its
 duties and obligations under the Security Documents and, in particular, with
 such necessary directions in writing so as to enable the Security Agent to
 make the calculations and applications contemplated by clause 31.22 (Order of
 application) above and to apply amounts received
 under, and the proceeds of realisation of, the Security Documents as
 contemplated by the Security Documents, clause 34.5 (Partial payments) and
 clause 31.22 (Order of application).

 

83

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.29

 	
  

 	
 Release to facilitate enforcement and realisation

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Finance Party acknowledges that pursuant to any enforcement action by the
 Security Agent (or a Receiver) carried out on the instructions of the Agent
 it may be desirable for the purpose of such enforcement and/or maximising the
 realisation of the Charged Property being enforced against, that any rights
 or claims of or by the Security Agent (for the benefit of the Finance
 Parties) and/or any Finance Parties against any Obligor and/or any Security
 Interest over any assets of any Obligor (in each case) as contained in or
 created by any Finance Document, other than such rights or claims or security
 being enforced, be released in order to facilitate such enforcement action
 and/or realisation and, notwithstanding any other provision of the Finance
 Documents, each Finance Party hereby irrevocably authorises the Security
 Agent (acting on the instructions of the Agent) to grant any such releases to
 the extent necessary to fully effect such enforcement action and realisation
 including, without limitation, to the extent necessary for such purposes to
 execute release documents in the name of and on behalf of the Finance
 Parties. Where the relevant enforcement is by way of disposal of shares in
 the Borrower, the requisite release shall include releases of all claims
 (including under guarantees) of the Finance Parties and/or the Security Agent
 against the Borrower and of all Security Interests over the assets of the
 Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.30

 	
  

 	
 Undertaking to pay

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 Obligor which is a Party undertakes with the Security Agent on behalf of the
 Finance Parties that it will, on demand by the Security Agent, pay to the
 Security Agent all money from time to time owing, and discharge all other
 obligations from time to time incurred, by it under or in connection with the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.31

 	
  

 	
 Additional trustees

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Security Agent shall have power by notice in writing to the other Finance
 Parties and the Borrower to appoint any person approved by the Majority
 Lenders (such approval not to be unreasonably withheld or delayed) either to
 act as separate trustee or as co-trustee jointly with the Security Agent:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 if
 the Security Agent reasonably considers such appointment to be in the best
 interests of the Finance Parties;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 for
 the purpose of conforming with any legal requirement, restriction or
 condition in any jurisdiction in which any particular act is to be performed;
 or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 for
 the purpose of obtaining a judgment in any jurisdiction or the enforcement in
 any jurisdiction against any person of a judgment already obtained,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and
 any person so appointed shall (subject to the provisions of this Agreement)
 have such rights (including as to reasonable remuneration), powers, duties
 and obligations as shall be conferred or imposed by the instrument of
 appointment. The Security Agent shall have power to remove any person so
 appointed. At the request of the Security Agent, the other parties to this Agreement
 shall forthwith execute all such documents and do all such things as may be
 required to perfect such appointment or removal and each such party
 irrevocably authorises the Security Agent in its name and on its behalf to do
 the same. Such a person shall accede to this Agreement as a Security Agent to
 the extent necessary to carry out their role on terms satisfactory to the
 Security Agent and (subject always to the provisions of this Agreement) have
 such trusts, powers, authorities, liabilities and discretions (not exceeding
 those conferred on the Security Agent by this Agreement and the other Finance
 Documents) and such duties and obligations as shall be conferred or imposed
 by the instrument of appointment (being no less onerous than would have applied
 to the Security Agent but for the appointment). The Security Agent shall not
 be bound to supervise, or be responsible for any loss incurred by reason of
 any act or omission of, any such person if the Security Agent shall have
 exercised reasonable care in the selection of such person.

 

84

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 31.32

 	
  

 	
 Non-recognition of trust

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 It
 is agreed by all the parties to this Agreement that:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in
 relation to any jurisdiction the courts of which would not recognise or give
 effect to the trusts expressed to be constituted by this clause 31, the
 relationship of the Security Agent and the other Finance Parties shall be
 construed as one of principal and agent, but to the extent permissible under
 the laws of such jurisdiction, all the other provisions of this Agreement
 shall have full force and effect between the parties to this Agreement; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the
 provisions of this clause 31 insofar as they relate to the Security Agent in
 its capacity as trustee for the Finance Parties and the relationship between
 themselves and the Security Agent as their trustee may be amended by
 agreement between the other Finance Parties and the Security Agent. The
 Security Agent may amend all documents necessary to effect the alteration of
 the relationship between the Security Agent and the other Finance Parties and
 each such other party irrevocably authorises the Security Agent in its name
 and on its behalf to execute all documents necessary to effect such
 amendments.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32

 	
  

 	
 Conduct of business by the Finance Parties

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.1

 	
  

 	
 Finance Parties tax affairs

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No
 provision of this Agreement will:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 interfere
 with the right of any Finance Party to arrange its affairs (tax or otherwise)
 in whatever manner it thinks fit;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 oblige
 any Finance Party to investigate or claim any credit, relief, remission or
 repayment available to it or the extent, order and manner of any claim; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 oblige
 any Finance Party to disclose any information relating to its affairs (tax or
 otherwise) or any computations in respect of Tax.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.2

 	
  

 	
 Finance Parties acting together

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Notwithstanding
 clause 2.2 (Finance
 Parties’ rights and obligations), if the Agent makes a declaration
 under clause 28.23 (Acceleration) the Agent shall, in the names of all the
 Finance Parties, take such action on behalf of the Finance Parties and
 conduct such negotiations with the Borrower, any Obligors or any Subsidiaries
 of an Obligor and generally administer the Facility in accordance with the
 wishes of the Majority Lenders. All the Finance Parties shall be bound by the
 provisions of this clause and no Finance Party shall be entitled to take
 action independently against any Obligor or any of its assets without the
 prior consent of the Majority Lenders.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This
 clause shall not override clause 31 (Roles of Agent, Security Agent and
 Arranger) as it applies to the Security Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.3

 	
  

 	
 Majority Lenders

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.3.1

 	
  

 	
 Where
 any Finance Document provides for any matter to be determined by reference to
 the opinion of, or to be subject to the consent, approval or request of, the
 Majority Lenders or for any action to be taken on the instructions of the
 Majority Lenders (a “majority decision”), such majority
 decision shall (as between the Lenders) only be regarded as having been
 validly given or issued by the Majority Lenders if all the Lenders shall have
 received prior notice of the matter on which such majority decision is
 required and the relevant majority of Lenders shall have given or issued such
 majority decision. However (as between any Obligor and the Finance Parties)
 the relevant Obligor shall be entitled (and bound) to assume that such notice
 shall have been duly received by each Lender and that the relevant majority
 shall have been obtained to 

 

85

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 constitute
 Majority Lenders when notified to this effect by the Agent whether or not
 this is the case.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.3.2

 	
  

 	
 If,
 within ten Business Days of the Agent despatching to each Lender a notice
 requesting instructions (or confirmation of instructions) from the Lenders or
 the agreement of the Lenders to any amendment, modification, waiver,
 variation or excuse of performance for the purposes of, or in relation to,
 any of the Finance Documents, the Agent has not received a reply specifically
 giving or confirming or refusing to give or confirm the relevant instructions
 or, as the case may be, approving or refusing to approve the proposed
 amendment, modification, waiver, variation or excuse of performance, then
 (irrespective of whether such Lender responds at a later date) the Agent
 shall treat any Lender which has not so responded as having indicated a
 desire to be bound by the wishes of 662/3% of those
 Lenders (measured in terms of the total Commitments of those Lenders) which
 have so responded.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.3.3

 	
  

 	
 For
 the purposes of clause 32.3.2, any Lender which notifies the Agent of a wish or
 intention to abstain on any particular issue shall be treated as if it had
 not responded.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.4

 	
  

 	
 Conflicts

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.4.1

 	
  

 	
 The
 Borrower acknowledges that any Arranger and its parent undertaking,
 subsidiary undertakings and fellow subsidiary undertakings (together an Arranger
 Group) may be providing debt finance, equity capital or other
 services (including financial advisory services) to other persons with which
 the Borrower may have conflicting interests in respect of the Facility or
 otherwise.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.4.2

 	
  

 	
 No
 member of an Arranger Group shall use confidential information gained from
 any Obligor by virtue of the Facility or its relationships with any Obligor
 in connection with their performance of services for other persons. This
 shall not, however, affect any obligations that any member of an Arranger
 Group has as Agent in respect of the Finance Documents. The Borrower also
 acknowledges that no member of an Arranger Group has any obligation to use or
 furnish to any Obligor information obtained from other persons for their
 benefit.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.4.3

 	
  

 	
 The
 terms parent
 undertaking, subsidiary undertaking and fellow
 subsidiary undertaking when used in this clause have the
 meaning given to them in sections 1161 and 1162 of the Companies Act
 2006.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.5

 	
  

 	
 Replacement of a Defaulting Lender

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 32.5.1

 	
  

 	
 The
 Borrower may, at any time a Lender has become and continues to be a
 Defaulting Lender, by giving 20 Business Days’ prior written notice to the
 Agent and such Lender:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 replace
 such Lender by requiring such Lender to (and to the extent permitted by law
 such Lender shall) transfer pursuant to clause 29 (Changes to the Lenders)
 all (and not part only) of its rights and obligations under this Agreement;
 or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 require
 such Lender to (and to the extent permitted by law such Lender shall)
 transfer pursuant to clause 29 (Changes to the Lenders) all (and not
 part only) of the undrawn Commitment of the Lender,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 to
 a Lender or other bank, financial institution, trust, fund or other entity (a
 “Replacement
 Lender”) selected by the Borrower, and which is acceptable to the
 Agent (acting reasonably) and (in the case of any transfer of any undrawn
 Commitments), which confirms its willingness to assume and does assume all
 the obligations or all the relevant obligations of the transferring Lender
 (including the assumption of the transferring Lender’s participations or
 unfunded participations (as the case may be) on the same basis as the
 transferring Lender) for a purchase price in cash payable at the time of
 transfer equal to the outstanding principal amount of such Lender’s
 participation in the outstanding Utilisations and all accrued interest, Break
 Costs and other amounts payable in relation thereto under the Finance
 Documents.

 

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 32.5.2

 	
  

 	
 Any
 transfer of rights and obligations of a Defaulting Lender pursuant to this
 clause shall be subject to the following conditions:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the
 Borrower shall have no right to replace the Agent;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 neither
 the Agent nor the Defaulting Lender shall have any obligation to the Borrower
 to find a Replacement Lender;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the
 transfer must take place no later than 20 days after the notice referred to
 in clause 32.5.1; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 in
 no event shall the Defaulting Lender be required to pay or surrender to the
 Replacement Lender any of the fees received by the Defaulting Lender pursuant
 to the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33

 	
  

 	
 Sharing among the Finance Parties

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.1

 	
  

 	
 Payments to Finance Parties

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If
 a Finance Party (a Recovering Finance Party) receives or
 recovers any amount from an Obligor other than in accordance with clause 34 (Payment
 mechanics) and applies that amount to a payment due under the
 Finance Documents then:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the
 Recovering Finance Party shall, within three Business Days, notify details of
 the receipt or recovery, to the Agent;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the
 Agent shall determine whether the receipt or recovery is in excess of the
 amount the Recovering Finance Party would have been paid had the receipt or
 recovery been received or made by the Agent and distributed in accordance
 with clause 34 (Payment mechanics), without taking account of any Tax
 which would be imposed on the Agent in relation to the receipt, recovery or
 distribution; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the
 Recovering Finance Party shall, within three Business Days of demand by the
 Agent, pay to the Agent an amount (the Sharing Payment) equal to such receipt or
 recovery less any amount which the Agent determines may be retained by the
 Recovering Finance Party as its share of any payment to be made, in
 accordance with clause 34.5 (Partial payments).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.2

 	
  

 	
 Redistribution of payments

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent shall treat the Sharing Payment as if it had been paid by the relevant
 Obligor and distribute it between the Finance Parties (other than the
 Recovering Finance Party) in accordance with clause 34.5 (Partial payments).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.3

 	
  

 	
 Recovering Finance Party’s rights

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.3.1

 	
  

 	
 On
 a distribution by the Agent under clause 33.2 (Redistribution of payments),
 the Recovering Finance Party will be subrogated to the rights of the Finance
 Parties which have shared in the redistribution.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.3.2

 	
  

 	
 If
 and to the extent that the Recovering Finance Party is not able to rely on
 its rights under clause 33.3.1 above, the relevant Obligor shall be liable to the
 Recovering Finance Party for a debt equal to the Sharing Payment which is
 immediately due and payable.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.4

 	
  

 	
 Reversal of redistribution

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If
 any part of the Sharing Payment received or recovered by a Recovering Finance
 Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

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 (a)

 	
 each
 Finance Party which has received a share of the relevant Sharing Payment
 pursuant to clause 33.2 (Redistribution of payments) shall, upon
 request of the Agent, pay to the Agent for account of that Recovering Finance
 Party an amount equal to the appropriate part of its share of the Sharing
 Payment (together with an amount as is necessary to reimburse that Recovering
 Finance Party for its proportion of any interest on the Sharing Payment which
 that Recovering Finance Party is required to pay); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 that
 Recovering Finance Party’s rights of subrogation in respect of any
 reimbursement shall be cancelled and the relevant Obligor will be liable to
 the reimbursing Lender for the amount so reimbursed.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.5

 	
  

 	
 Exceptions

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.5.1

 	
  

 	
 This
 clause 33 shall not apply to the extent that the Recovering Finance Party
 would not, after making any payment pursuant to this clause, have a valid and
 enforceable claim against the relevant Obligor.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 33.5.2

 	
  

 	
 A
 Recovering Finance Party is not obliged to share with any other Finance Party
 any amount which the Recovering Finance Party has received or recovered as a
 result of taking legal or arbitration proceedings in accordance with the
 terms of this Agreement, if:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 it
 notified that other Finance Party of the legal or arbitration proceedings;
 and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 that
 other Finance Party had an opportunity to participate in those legal or
 arbitration proceedings but did not do so as soon as reasonably practicable
 having received notice and did not take separate legal or arbitration
 proceedings.

 

88

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9 - ADMINISTRATION

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34

 	
  

 	
 Payment mechanics

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.1

 	
  

 	
 Payments to the Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.1.1

 	
  

 	
 On
 each date on which an Obligor or a Lender is required to make a payment under
 a Finance Document, that Obligor or Lender shall make the same available to
 the Agent (unless a contrary indication appears in a Finance Document) for
 value on the due date at the time and in such funds specified by the Agent as
 being customary at the time for settlement of transactions in the relevant
 currency in the place of payment.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.1.2

 	
  

 	
 Payment
 shall be made to such account in the principal financial centre of the
 country of that currency (or, in relation to euro, in a principal financial
 centre in a Participating Member State or London) with such bank as the Agent
 specifies.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.2

 	
  

 	
 Distributions by the Agent

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each
 payment received by the Agent under the Finance Documents for another Party
 shall, subject to clause 34.3 (Distributions to an Obligor) and clause
 34.4 (Clawback)
 be made available by the Agent as soon as practicable after receipt to the
 Party entitled to receive payment in accordance with this Agreement (in the
 case of a Lender, for the account of its Facility Office), to such account as
 that Party may notify to the Agent by not less than five Business Days’
 notice with a bank in the principal financial centre of the country of that
 currency (or, in relation to euro, in the principal financial centre of a
 Participating Member State or London).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.3

 	
  

 	
 Distributions to an Obligor

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Agent may (with the consent of the Obligor or in accordance with clause 35 (Set-off))
 apply any amount received by it for that Obligor in or towards payment (on
 the date and in the currency and funds of receipt) of any amount due from
 that Obligor under the Finance Documents or in or towards purchase of any
 amount of any currency to be so applied.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.4

 	
  

 	
 Clawback

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.4.1

 	
  

 	
 Where
 a sum is to be paid to the Agent under the Finance Documents for another
 Party, the Agent is not obliged to pay that sum to that other Party (or to enter
 into or perform any related exchange contract) until it has been able to
 establish to its satisfaction that it has actually received that sum.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.4.2

 	
  

 	
 If
 the Agent pays an amount to another Party and it proves to be the case that
 the Agent had not actually received that amount, then the Party to whom that
 amount (or the proceeds of any related exchange contract) was paid by the
 Agent shall on demand refund the same to the Agent together with interest on
 that amount from the date of payment to the date of receipt by the Agent,
 calculated by the Agent to reflect its cost of funds.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.5

 	
  

 	
 Partial payments

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.5.1

 	
  

 	
 If
 the Agent receives a payment for application against amounts due under the
 Finance Documents that is insufficient to discharge all the amounts then due
 and payable by an Obligor under those Finance Documents, the Agent shall
 apply that payment towards the obligations of that Obligor under those
 Finance Documents in the following order:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 first, in or towards payment
 pro rata of any unpaid fees, costs and expenses (ignoring any fees payable
 under clause 11 (Fees)) of the Agent, the Security Agent or the Arrangers
 under those Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 secondly, in or towards payment
 to the Lenders pro rata of any amount owing to the Lenders under clause 31.10 (Lenders’
 indemnity to the Agent) including any amount

 

89

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 resulting from the indemnity to the Security Agent under clause
 31.20.1 (Application
 of certain clauses to Security Agent);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 thirdly, in or towards payment to the
 Lenders pro rata of any accrued interest, fee or commission due but unpaid
 under those Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 fourthly, in or towards payment to the
 Lenders pro rata of any principal which is due but unpaid under those Finance
 Documents; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 fifthly, in or towards payment pro rata
 of any other sum due but unpaid under the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 34.5.2

 	
  

 	
 The Agent shall, if so directed by all the Lenders, vary the order
 set out in paragraphs (b) to (e) of clause 34.5.1.

 
	
  

 	
  

 	
  

 
	
 34.5.3

 	
  

 	
 Clauses 34.5.1 and 34.5.2 above will override any appropriation made by
 an Obligor.

 
	
  

 	
  

 	
  

 
	
 34.6

 	
  

 	
 No set-off by Obligors

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All payments to be made by an Obligor under the Finance Documents
 shall be calculated and be made without (and free and clear of any deduction
 for) set-off or counterclaim.

 
	
  

 	
  

 	
  

 
	
 34.7

 	
  

 	
 Business Days

 
	
  

 	
  

 	
  

 
	
 34.7.1

 	
  

 	
 Any payment which is due to be made on a day that is not a Business
 Day shall be made on the next Business Day in the same calendar month (if
 there is one) or the preceding Business Day (if there is not).

 
	
  

 	
  

 	
  

 
	
 34.7.2

 	
  

 	
 During any extension of the due date for payment of any principal or
 Unpaid Sum under this Agreement interest is payable on the principal or
 Unpaid Sum at the rate payable on the original due date.

 
	
  

 	
  

 	
  

 
	
 34.8

 	
  

 	
 Currency of account

 
	
  

 	
  

 	
  

 
	
 34.8.1

 	
  

 	
 Subject to clauses 34.8.2 to 34.8.3, dollars is the currency of
 account and payment for any sum due from an Obligor under any Finance
 Document.

 
	
  

 	
  

 	
  

 
	
 34.8.2

 	
  

 	
 A repayment of all or part of the Loan or an Unpaid Sum and each
 payment of interest shall be made in dollars on its due date.

 
	
  

 	
  

 	
  

 
	
 34.8.3

 	
  

 	
 Each payment in respect of the amount of any costs, expenses or Taxes
 or other losses shall be made in dollars and, if they were incurred in a
 currency other than dollars, the amount payable under the Finance Documents
 shall be the equivalent in dollars of the relevant amount in such other
 currency on the date on which it was incurred.

 
	
  

 	
  

 	
  

 
	
 34.8.4

 	
  

 	
 All moneys received or held by the Security Agent or by a Receiver
 under a Security Document in a currency other than dollars may be sold for
 dollars and the Obligor which executed that Security Document shall indemnify
 the Security Agent against the full cost in relation to the sale. Neither the
 Security Agent nor such Receiver will have any liability to that Obligor in
 respect of any loss resulting from any fluctuation in exchange rates after
 the sale.

 
	
  

 	
  

 	
  

 
	
 34.9

 	
  

 	
 Disruption to Payment Systems etc.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If either the Agent determines (in its discretion) that a Disruption
 Event has occurred or the Agent is notified by the Borrower that a Disruption
 Event has occurred:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the Agent may, and shall if requested to do so by the Borrower, consult
 with the Borrower with a view to agreeing with the Borrower such changes to
 the operation or administration of the Facility as the Agent may deem
 necessary in the circumstances;

 

90

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the Agent shall not be obliged to consult with the Borrower in
 relation to any changes mentioned in paragraph (a) above if, in its opinion,
 it is not practicable to do so in the circumstances and, in any event, shall
 have no obligation to agree to such changes;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the Agent may consult with the Finance Parties in relation to any
 changes mentioned in paragraph (a) above but shall not be obliged to do so
 if, in its opinion, it is not practicable to do so in the circumstances;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 any such changes agreed upon by the Agent and the Borrower shall
 (whether or not it is finally determined that a Disruption Event has
 occurred) be binding upon the Parties as an amendment to (or, as the case may
 be, waiver of) the terms of the Finance Documents notwithstanding the
 provisions of clause 42 (Amendments and grant of waivers);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 the Agent shall not be liable for any damages, costs or losses
 whatsoever (including, without limitation for negligence, gross negligence or
 any other category of liability whatsoever but not including any claim based
 on the fraud of the Agent) arising as a result of its taking, or failing to
 take, any actions pursuant to or in connection with this clause 34.9; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (f)

 	
 the Agent shall notify the Finance Parties of all changes agreed
 pursuant to paragraph (d) above.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 35

 	
  

 	
 Set-off

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A Finance Party may set off any matured obligation due from an
 Obligor under the Finance Document (to the extent beneficially owned by that Finance
 Party) against any matured obligation owed by that Finance Party to that
 Obligor, regardless of the place of payment, booking branch or currency of
 either obligation. If the obligations are in different currencies, the
 Finance Party may convert either obligation at a market rate of exchange in
 its usual course of business for the purpose of the set-off.

 
	
  

 	
  

 	
  

 
	
 36

 	
  

 	
 Notices

 
	
  

 	
  

 	
  

 
	
 36.1 

 	
  

 	
 Communications in writing 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any communication to be made under or in connection with the Finance
 Documents shall be made in writing and, unless otherwise stated, may be made
 by fax or letter.

 
	
  

 	
  

 	
  

 
	
 36.2 

 	
  

 	
 Addresses 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The address, and fax number (and the department or officer, if any,
 for whose attention the communication is to be made) of each Obligor or
 Finance Party for any communication or document to be made or delivered under
 or in connection with the Finance Documents is:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in the case of any Obligor which is a Party, that identified with its
 name in Schedule 1 (The original parties);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 in the case of any Obligor which is not a Party, that identified in
 any Finance Document to which it is a party;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 in the case of any Original Lender, the Security Agent, the Agent and
 any other original Finance Party that identified with its name in Schedule 1
 (The
 original parties); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 in the case of each other Lender or Finance Party, that notified in
 writing to the Agent on or prior to the date on which it becomes a Party in
 the relevant capacity,

 

91

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or, in each case, any substitute address, fax number, or department
 or officer as an Obligor or Finance Party may notify to the Agent (or the
 Agent may notify to the other Parties, if a change is made by the Agent) by
 not less than five Business Days’ notice.

 
	
  

 	
  

 	
  

 
	
 36.3

 	
  

 	
 Delivery

 
	
  

 	
  

 	
  

 
	
 36.3.1

 	
  

 	
 Any communication or document made or delivered by one person to
 another under or in connection with the Finance Documents will only be
 effective:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 if by way of fax, when received in legible form; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if by way of letter, when it has been left at the relevant address or
 five Business Days after being deposited in the post postage prepaid in an
 envelope addressed to it at that address,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and, if a particular department or officer is specified as part of
 its address details provided under clause 36.2 (Addresses), if addressed
 to that department or officer.

 
	
  

 	
  

 	
  

 
	
 36.3.2

 	
  

 	
 Any communication or document to be made or delivered to the Agent or
 the Security Agent will be effective only when actually received by the Agent
 or the Security Agent and then only if it is expressly marked for the
 attention of the department or officer identified in Schedule 1 (The
 original parties) (or any substitute department or officer as the
 Agent or the Security Agent shall specify for this purpose).

 
	
  

 	
  

 	
  

 
	
 36.3.3

 	
  

 	
 All notices from or to an Obligor shall be sent through the Agent.

 
	
  

 	
  

 	
  

 
	
 36.3.4

 	
  

 	
 Any communication or document made or delivered to the Borrower in
 accordance with this clause will be deemed to have been made or delivered to
 each of the Obligors.

 
	
  

 	
  

 	
  

 
	
 36.4

 	
  

 	
 Notification of address and fax number

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Promptly upon receipt of notification of an address and fax number or
 change of address or fax number pursuant to clause 36.2 (Addresses) or changing its
 own address or fax number, the Agent shall notify the other Parties.

 
	
  

 	
  

 	
  

 
	
 36.5

 	
  

 	
 Electronic communication (Finance Parties)

 
	
  

 	
  

 	
  

 
	
 36.5.1

 	
  

 	
 Any communication to be made between the Agent and a Lender or the
 Security Agent under or in connection with the Finance Documents may be made
 by electronic mail or other electronic means, if the Agent and the relevant
 Lender or the Security Agent:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 notify each other of any change to their address or any other such
 information supplied by them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Finance Parties hereby confirm that unless and until notified to
 the contrary, communication by electronic mail or other electronic means is
 an accepted form of communication.

 
	
  

 	
  

 	
  

 
	
 36.5.2

 	
  

 	
 Any electronic communication made between the Agent and a Lender or
 the Security Agent will be effective only when actually received in readable
 form and in the case of any electronic communication made by a Lender or the
 Security Agent to the Agent only if it is addressed in such a manner as the
 Agent shall specify for this purpose.

 

92

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 36.6

 	
  

 	
 Electronic Communications (Obligors)

 
	
  

 	
  

 	
  

 
	
 36.6.1

 	
  

 	
 Any general communication made between any Finance Party and any
 Obligor, may be made by electronic mail or other electronic means
 (irrespective of any associated risks) if the parties:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 notify each other of any change to their address or any other such
 information supplied by them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of the Finance Parties and each Obligor hereby confirm that
 unless and until notified to the contrary, communication by electronic mail
 is an acceptable form of general communication.

 
	
  

 	
  

 	
  

 
	
 36.6.2

 	
  

 	
 Each of the Finance Parties and each Obligor agrees and confirms that
 any communications which involves the giving or receiving of notice (of any
 nature) under this Agreement or relates to the making of requests or demands
 under this Agreement may only be made in accordance with clause 36.3 (Delivery).

 
	
  

 	
  

 	
  

 
	
 36.6.3

 	
  

 	
 Any electronic communication made between any Obligor and any Finance
 Party will be effective only when actually received in readable form and in
 the case of any electronic communication made by an Obligor to any Finance
 Party only if it is addressed in such a manner as that Finance Party shall
 specify for this purpose.

 
	
  

 	
  

 	
  

 
	
 36.7

 	
  

 	
 English language

 
	
  

 	
  

 	
  

 
	
 36.7.1

 	
  

 	
 Any notice given under or in connection with any Finance Document
 shall be in English.

 
	
  

 	
  

 	
  

 
	
 36.7.2

 	
  

 	
 All other documents provided under or in connection with any Finance
 Document shall be:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in English; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if not in English, and if so required by the Agent, accompanied by a
 certified English translation and, in this case, the English translation will
 prevail unless the document is a constitutional, statutory or other official
 document.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 37

 	
  

 	
 Calculations and certificates

 
	
  

 	
  

 	
  

 
	
 37.1

 	
  

 	
 Accounts

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In any litigation or arbitration proceedings arising out of or in
 connection with a Finance Document, the entries made in the accounts
 maintained by a Finance Party are prima facie evidence of the matters to
 which they relate.

 
	
  

 	
  

 	
  

 
	
 37.2

 	
  

 	
 Certificates and determinations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any certification or determination by the Agent of a rate or amount
 under any Finance Document is in the absence of manifest error, conclusive
 evidence of the matters to which it relates.

 
	
  

 	
  

 	
  

 
	
 37.3

 	
  

 	
 Day count convention

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any interest, commission or fee accruing under a Finance Document
 will accrue from day to day and is calculated on the basis of the actual
 number of days elapsed and a year of 360 days or, in any case where the
 practice in the Interbank Market differs, in accordance with that market
 practice.

 

93

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 38

 	
  

 	
 Partial invalidity

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If, at any time, any provision of the Finance Documents is or becomes
 illegal, invalid or unenforceable in any respect under any law of any
 jurisdiction, neither the legality, validity or enforceability of the
 remaining provisions nor the legality, validity or enforceability of such
 provision under the law of any other jurisdiction will in any way be affected
 or impaired.

 
	
  

 	
  

 	
  

 
	
 39

 	
  

 	
 Remedies and waivers

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No failure to exercise, nor any delay in exercising, on the part of
 any Finance Party, any right or remedy under the Finance Documents shall
 operate as a waiver, nor shall any single or partial exercise of any right or
 remedy prevent any further or other exercise or the exercise of any other
 right or remedy. The rights and remedies provided in the Finance Documents
 are cumulative and not exclusive of any rights or remedies provided by law.

 
	
  

 	
  

 	
  

 
	
 40

 	
  

 	
 Amendments and grant of waivers

 
	
  

 	
  

 	
  

 
	
 40.1

 	
  

 	
 Required consents

 
	
  

 	
  

 	
  

 
	
 40.1.1

 	
  

 	
 Any term of the Finance Documents may be amended or waived, or a
 consent given by the Agent in respect of such term or the Agent may provide
 its opinion with respect to such term, with the consent of the Agent acting
 on the instructions of all of the Lenders unless such Finance Documents
 provides that such amendment or waiver may be made with the consent of the
 Majority Lenders and, if it affects the rights and obligations of the
 Security Agent or the Agent, the consent of the Agent or the Security Agent)
 and any such amendment or waiver agreed or given by the Agent will be binding
 on the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 40.1.2

 	
  

 	
 The Agent may (or, in the case of the Security Documents, instruct
 the Security Agent to) effect, on behalf of any Finance Party, any amendment
 or waiver permitted by this clause.

 
	
  

 	
  

 	
  

 
	
 40.1.3

 	
  

 	
 An amendment or waiver which relates to the rights or obligations of
 the Agent, the Security Agent or the Arrangers in their respective capacities
 as such (and not just as a Lender) may not be effected without the consent of
 the Agent, Security Agent or the Arrangers (as the case may be).

 
	
  

 	
  

 	
  

 
	
 40.1.4

 	
  

 	
 Notwithstanding clauses 40.1.1 to 40.1.3 (inclusive), the Agent may
 make technical amendments to the Finance Documents arising out of manifest
 errors on the face of the Finance Documents, where such amendments would not
 prejudice or otherwise be adverse to the interests of any Finance Party
 without any reference or consent of the Finance Parties.

 
	
  

 	
  

 	
  

 
	
 40.2

 	
  

 	
 Releases

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with the approval of the Lenders or as is expressly permitted
 or required by the Finance Documents, the Agent shall not have authority to
 authorise the Security Agent to release:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any Charged Property from the security constituted by any Security
 Document; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any Obligor from any of its guarantee or other obligations under any
 Finance Document.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 41

 	
  

 	
 Counterparts

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Finance Document may be executed in any number of counterparts,
 and this has the same effect as if the signatures on the counterparts were on
 a single copy of the Finance Document.

 

94

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10 - GOVERNING LAW AND ENFORCEMENT

 
	
  

 	
  

 	
  

 
	
 42

 	
  

 	
 Governing law

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This Agreement and any non-contractual obligations connected with it
 are governed by English law.

 
	
  

 	
  

 	
  

 
	
 43

 	
  

 	
 Enforcement

 
	
  

 	
  

 	
  

 
	
 43.1

 	
  

 	
 Jurisdiction of English courts

 
	
  

 	
  

 	
  

 
	
 43.1.1

 	
  

 	
 The courts of England have exclusive jurisdiction to settle any
 dispute arising out of or in connection with this Agreement or any
 non-contractual obligations connected with it (including a dispute regarding
 the existence, validity or termination of this Agreement) (a Dispute).

 
	
  

 	
  

 	
  

 
	
 43.1.2

 	
  

 	
 The Parties agree that the courts of England are the most appropriate
 and convenient courts to settle Disputes and accordingly no Party will argue
 to the contrary.

 
	
  

 	
  

 	
  

 
	
 43.1.3

 	
  

 	
 This clause 43.1 is for the benefit of the Finance Parties only. As a
 result, no Finance Party shall be prevented from taking proceedings relating
 to a Dispute in any other courts with jurisdiction. To the extent allowed by
 law, the Finance Parties may take concurrent proceedings in any number of
 jurisdictions.

 
	
  

 	
  

 	
  

 
	
 43.2

 	
  

 	
 Service of process

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Without prejudice to any other mode of service allowed under any
 relevant law, each Obligor which is a Party:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 irrevocably appoints the person named in Schedule 1 (The
 original parties) as that Obligor’s English process agent as its
 agent for service of process in relation to any proceedings before the
 English courts in connection with any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 agrees that failure by a process agent to notify the relevant Obligor
 of the process will not invalidate the proceedings concerned; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 if any person appointed as process agent for an Obligor is unable for
 any reason to act as agent for service of process, that Obligor must
 immediately (and in any event within ten days of such event taking place)
 appoint another agent on terms acceptable to the Agent. Failing this, the
 Agent may appoint another agent for this purpose.

 

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

95

Schedule 1

The original parties

Borrower

	
  

 	
  

 
	

 
	
 Name:

 	
 GAS-two Ltd.

 
	
 Jurisdiction of incorporation

 	
 Bermuda

 
	
 Registration number (or equivalent, if any)

 	
 41495

 
	
 English process agent (if not incorporated in England)

 	
 Unisea Maritime Ltd.

 
	
 Registered office

 	
 Clarendon House, 2 Church Street, Hamilton
 HM11, Bermuda

 
	
 Address for service of notices

 	
 Mr. Henrik Bjerregaard, c/o Gaslog Monaco
 SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 

GasLog

	
  

 	
  

 
	

 
	
 Name of GasLog

 	
 GasLog Ltd.

 
	
 Jurisdiction of incorporation

 	
 Bermuda

 
	
 Registration number (or equivalent, if any)

 	
 33928

 
	
 English process agent (if not incorporated in England)

 	
 Unisea Maritime Ltd.

 
	
 Registered office

 	
 Clarendon House, 2 Church Street, Hamilton
 HM11, Bermuda

 
	
 Address for service of notices

 	
 Mr. Henrik Bjerregaard, c/o Gaslog Monaco
 SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 

GasLog Carriers

	
  

 	
  

 
	

 
	
 Name of GasLog Carriers

 	
 GasLog Carriers Ltd.

 
	
 Jurisdiction of incorporation

 	
 Bermuda

 
	
 Registration number (or equivalent, if any)

 	
 41493

 
	
 English process agent (if not incorporated in England)

 	
 Unisea Maritime Ltd.

 
	
 Registered office

 	
 Clarendon House, 2 Church Street, Hamilton
 HM11, Bermuda

 
	
 Address for service of notices

 	
 Mr. Henrik Bjerregaard, c/o Gaslog Monaco
 SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 

96

The Original Lenders

	
  

 	
  

 	
  

 	
  

 	
  

 
	

 
	
 Name

 	
  

 	
 DNB Bank ASA

 	
 National Bank of

 Greece S.A.

 	
 UBS AG

 
	
 Facility
 Office, address, fax number and attention details for notices and account
 details for payments

 	
  

 	
 20 St. Dunstan’s
 Hill

 London EC3R 8SY

 

 For credit matters:

 Mr Alex Ryland/ Mr

 Christo Nikolov

 Fax: +44(0)207 626

 5956

 

 For loan

 administration

 matters:

 

 Mr Mike Rufian / Mr

 Simon Beedleston

 Fax: +44(0) 207 283

 4430

 	
 2 Bouboulinas

 Street & Akti

 Miaouli

 Piraeus 185 35

 Greece

 

 For credit matters:

 Ms Kalamvouni/Ms

 Antoniou

 Fax:+30 210

 4144120

 

 For loan

 administration

 matters:

 

 Mr. Kalyvas

 Fax: +30210

 4144092

 	
 Bahnhofstrasse, 45

 8001 Zurich

 

 For credit matters:

 Mr Reto Bleiker,

 Corporate Clients

 Advisor

 Fax: +41 (0)44 237 41

 41

 

 For loan administration

 matters:

 

 Fax: +41 44 237 41 41

 A/C No.: 0230-284035

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Commitment
 ($)

 	
  

 	
 49,166,666.66

 	
 49,166,666.66

 	
 49,166,666.66

 
	
 TOTAL

 	
  

 	
 147,500,000

 	
  

 	
  

 

97

The Agent

	
  

 	
  

 	
  

 
	

 
	
 Name

 	
  

 	
 DNB Bank ASA

 
	
 Facility Office, address, fax number and
 attention details for notices and account details for payments

 	
  

 	
 20 St. Dunstan’s
 Hill

 
	
  

 	
 London EC3R 8HY

 
	
  

 	
  

 
	
  

 	
 For credit
 matters:

 
	
  

 	
 Attn: Shipping
 Department

 
	
  

 	
 Fax: +44(0)207 626
 5956

 
	
  

 	
  

 
	
  

 	
 For loan administration
 matters:

 
	
  

 	
 Mr Mike Rufian

 
	
  

 	
 Fax: +44(0) 207
 283 4430

 

The Security Agent

	
  

 	
  

 	
  

 
	

 
	
 Name

 	
  

 	
 DNB Bank ASA

 
	
 Facility Office, address, fax number and
 attention details for notices and account details for payments

 	
  

 	
 20 St. Dunstan’s
 Hill

 
	
  

 	
 London EC3R 8HY

 
	
  

 	
  

 
	
  

 	
 For credit
 matters:

 
	
  

 	
 Attn: Shipping
 Department

 
	
  

 	
 Fax: +44(0)207 626
 5956

 
	
  

 	
  

 
	
  

 	
 For loan
 administration matters:

 
	
  

 	
 Mr Mike Rufian

 
	
  

 	
 Fax: +44(0) 207
 283 4430

 

98

Schedule 2

Ship information

	
  

 	
  

 	
  

 
	
 Builder:

 	
  

 	
 Samsung Heavy Industries Co., Ltd.

 
	
 Builder’s registered office:

 	
  

 	
 11th Floor, KIPS Center, 647-9
 Yeoksam-Dong, Kangnam-Gu,

 Seoul, Korea.

 
	
 Hull Number:

 	
  

 	
 1642

 
	
  

 	
  

 	
  

 
	
 Scheduled delivery date:

 	
  

 	
 31 July 2010

 
	
  

 	
  

 	
  

 
	
 Date and description of Building Contract:

 	
  

 	
 Shipbuilding Contract dated 29 April 2005 as amended by amendment no. 1 dated
 28 June 2007 and novated to the Borrower under a novation agreement dated 28
 March 2008 and as may further be amended, supplemented or varied in
 accordance with the terms hereof

 
	
 Price:

 	
  

 	
 $212,869,430

 
	
  

 	
  

 	
  

 
	
 Contract Price:

 	
  

 	
 $191,096,200

 
	
  

 	
  

 	
  

 
	
 Date and number of Refund Guarantee:

 	
  

 	
 7 April 2008,
 MO902-505-LG-0032/1

 
	
  

 	
  

 	
  

 
	
 Name and address of Refund Guarantor:

 	
  

 	
 The Export-Import Bank of Korea

 
	
  

 	
  

 	
  

 
	
 Pre-Delivery Commitment:

 	
  

 	
 $80,000,000

 
	
  

 	
  

 	
  

 
	
 Delivery Commitment:

 	
  

 	
 $67,500,000

 
	
  

 	
  

 	
  

 
	
 Flag State

 	
  

 	
 Bermuda

 
	
  

 	
  

 	
  

 
	
 Charter description:

 	
  

 	
 Time Charter dated 19 August 2008 as
 novated and amended by a Master Time Charter Party and Confirmation
 Memorandum each dated 9 May 2011

 
	
 Charterer:

 	
  

 	
 Methane Services Limited, currently a
 wholly-owned subsidiary of BG Energy Holdings Limited

 
	
  

 	
  

 	
  

 
	
 Classification:

 	
  

 	
 *A1, E, Liquefied gas carrier, ship type 2G
 (Membrane tank, maximum pressure 25 kPaG and minimum temperature -163°C), SH,
 SH-DLA, SHCM, RES, *AMS, *ACCU, SFA(40), NIBS, *APS, *ES, PORT, POT, CRC,
 DFD, and UWILD.

 
	
 Classification Society:

 	
  

 	
 American Bureau of Shipping

 

99

Schedule 3

Conditions precedent

Part 1
Conditions precedent to any Utilisation

	
  

 	
  

 	
  

 
	
 1

 	
 Original Obligors’ corporate documents

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 A
 copy of the Constitutional Documents of each Original Obligor.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A
 copy of a resolution of the board of directors of each Original Obligor (or
 any committee of such board empowered to approve and authorise the following
 matters):

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 approving
 the terms of, and the transactions contemplated by, the Finance Documents the
 Building Contract or the Charter (Relevant
 Documents) to which it is a party and resolving that it execute
 the Relevant Documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 authorising
 a specified person or persons to execute the Relevant Documents on its
 behalf; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 authorising
 a specified person or persons, on its behalf, to sign and/or despatch all
 documents and notices (including, if relevant, any Utilisation Request) to be
 signed and/or despatched by it under or in connection with the Relevant
 Documents to which it is a party.

 

	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 If
 applicable, a copy of a resolution of the board of directors of the relevant
 company, establishing any committee referred to in paragraph (b) above
 and conferring authority on that committee.

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 A
 specimen of the signature of each person authorised by the resolution referred
 to in paragraph (b) above.

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 (if
 a requirement under the Constitutional Documents of each Original Obligor or
 Bermudian law) A copy of a resolution signed by all the holders of the issued
 shares in each Original Obligor, approving the terms of, and the transactions
 contemplated by, the Relevant Documents to which such Obligor is a party.

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 (if
 a requirement under the Constitutional Documents of each Original Obligor or
 Bermudian law) A copy of a resolution of the board of directors of each
 corporate shareholder of each Original Obligor approving the terms of the
 resolution referred to in paragraph (e) above.

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 A
 certificate of the Counter Guarantor (signed by a director) confirming that
 borrowing or guaranteeing or securing, as appropriate, the Total Commitments
 would not cause any borrowing, guaranteeing or similar limit binding on any
 other Original Obligor to be exceeded.

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 A
 copy of any power of attorney under which any person is to execute any of the
 Relevant Documents on behalf of any Original Obligor.

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 A
 certificate of an authorised signatory of the relevant Original Obligor
 certifying that each copy document relating to it specified in this Part of
 this Schedule is correct, complete and in full force and effect as at a
 date no earlier than the date of this Agreement and that any such resolutions
 or power of attorney have not been revoked.

 

100

	
  

 	
  

 	
  

 
	
 2

 	
 Legal opinions

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 A
 legal opinion of Norton Rose LLP, London addressed to the Arrangers, the
 Security Agent and the Agent on matters of English law, substantially in the
 form approved by the Agent prior to signing this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A
 legal opinion of the legal advisers to the Arrangers, the Security Agent and
 the Agent in England and also each jurisdiction in which an Obligor is
 incorporated and/or which is or is to be the Flag State of the Ship, or in
 which an Account opened at Utilisation is established or which governs any
 assets which are to be the subject of a Security Interest substantially in
 the form approved by the Agent prior to signing this Agreement.

 
	
  

 	
  

 	
  

 
	
 3

 	
 Other documents and evidence

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 Evidence
 that any process agent referred to in clause 43.2 (Service of process) or any
 equivalent provision of any other Finance Document entered into on or before
 the first Utilisation Date, if not an Original Obligor, has accepted its
 appointment.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A
 copy of any other authorisation or other document, opinion or assurance which
 the Agent considers to be necessary or desirable (if it has notified the
 Borrower accordingly) in connection with the entry into and performance of
 the transactions contemplated by any Finance Document which is executed on
 and dated the date of the Agreement or for the validity and enforceability of
 any Finance Document.

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The
 Original Financial Statements.

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Evidence
 that the fees, commissions, costs and expenses then due from the Borrower
 pursuant to clause 11 (Fees) and clause 16 (Costs and expenses) have
 been paid or will be paid by the first Utilisation Date.

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 A
 copy, certified by an approved person to be a true and complete copy, of the
 Time Charter and of the supervision and management agreement entered into
 between the Borrower and the Manager (or another approved manager) in an
 approved form.

 
	
  

 	
  

 	
  

 
	
 4

 	
 Bank Accounts

 
	
  

 	
  

 
	
  

 	
 Evidence
 that any Account required to be established under clause 26 (Bank
 accounts) has been opened and established, that any Account
 Security in respect of each such Account has been executed and delivered by
 the Borrower in favour of the Security Agent and that any notice required to
 be given to an Account Bank under that Account Security has been given to it
 and acknowledged by it in the manner required by that Account Security and
 that an amount has been credited to it.

 
	
  

 	
  

 
	
 5

 	
 Construction matters

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 The
 original Refund Guarantee and a copy, certified by an approved person to be a
 true and complete copy, of the Building Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A
 Pre-Delivery Security Assignment duly executed by the Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Duly
 executed notices of assignment as required by the Pre-Delivery Security
 Assignment.

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Evidence
 that the acknowledgements of the notices of assignment required under the
 Pre-Delivery Security Assignment have been pre-cleared with and agreed by the
 Refund Guarantor and the Builder.

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 (If
 required by the Lenders) a legal opinion of legal advisers to the Arrangers,
 the Security Agent and the Agent in Korea substantially in the form agreed with the
 Agent prior to signing this Agreement.

 

101

	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 Evidence
 that the sum of $18,122,710 in respect of the Borrower’s equity in the Ship
 has been paid in an approved manner.

 
	
  

 	
  

 	
  

 
	
 6

 	
  “Know your customer” information

 
	
  

 	
  

 
	
  

 	
 Such
 documentation and information as any Finance Party may reasonably request through
 the Agent to comply with “know your customer” or similar identification
 procedures under all laws and regulations applicable to that Finance Party.

 
	
  

 	
  

 
	
 7

 	
 Guarantees and other Finance Documents

 
	
  

 	
  

 
	
  

 	
 The Counter Guarantee and the Guarantee duly executed
 and a copy, certified by an approved person to be a true and complete copy of
 the Counter Guarantor Representations Letter.

 
	
  

 	
  

 
	
 8

 	
 Share security

 
	
  

 	
  

 
	
  

 	
 The
 Share Security in respect of the Borrower duly executed by its Holding
 Company together with all letters, transfers, certificates and other
 documents required to be delivered under the Share Security.

 
	
  

 	
  

 
	
 9

 	
 Charter security

 
	
  

 	
  

 
	
  

 	
 The
 Charter Assignment duly executed by the Borrower.

 
	
  

 	
  

 
	
 10

 	
 Subordination

 
	
  

 	
  

 
	
  

 	
 Evidence
 that any amounts of the Price funded by an Affiliate to the Borrower have
 been subordinated to the amounts owing under the Finance Documents in an
 approved manner.

 
	
  

 	
  

 
	
 11

 	
 Value of Security

 
	
  

 	
  

 
	
  

 	
 (In
 the case of the Utilisation in respect of the Pre-Delivery Commitment)
 valuations obtained (not more than 30 days before the first Utilisation Date)
 in accordance with clause 24 (Minimum security value) showing that the
 Security Value (relative to the Building Contract) will not be less than 120%
 of the Loan upon the Utilisation Date.

 
	
  

 	
  

 
	
 12

 	
 Deed of Release

 
	
  

 	
  

 
	
  

 	
 Deed (or deeds) of release in relation to the
 Existing Loan Agreement and any security granted in connection with this,
 duly executed, together with any notices required under any deed of release.

 

102

Part 2

Conditions precedent on Delivery

	
  

 	
  

 	
  

 
	
 1

 	
 Corporate
 documents

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 A
 certificate of an authorised signatory of the Borrower certifying that each
 copy document relating to it specified in Part 1 of this Schedule remains
 correct, complete and in full force and effect as at a date no earlier than a
 date approved for this purpose and that any resolutions or power of attorney
 referred to in Part I of this Schedule in relation to it have not been
 revoked or amended.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A
 certificate of an authorised signatory of each other Obligor which is party
 to any of the Original Security Documents required to be executed at or
 before Delivery of the Ship certifying that each copy document relating to it
 specified in Part 1 of this Schedule remains correct, complete and in full
 force and effect as at a date no earlier than a date approved for this
 purpose and that any resolutions or power of attorney referred to in Part I
 of this Schedule in relation to it have not been revoked or amended.

 
	
  

 	
  

 	
  

 
	
 2

 	
 Security

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 The
 Mortgage and the Deed of Covenant duly executed by the Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Any
 Manager’s Undertaking required at Delivery pursuant to the Finance Documents
 duly executed by the relevant manager.

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Duly
 executed notices of assignment and acknowledgements of those notices as required
 by any of the above Security Documents.

 
	
  

 	
  

 	
  

 
	
 3

 	
 Delivery and registration of Ship

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 Evidence
 that the Ship:

 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 is
 legally and beneficially owned by the Borrower and registered provisionally
 in the name of the Borrower through the relevant Registry as a ship under the
 laws and flag of the relevant Flag State;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 is
 operationally seaworthy and in every way fit for service;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 is
 classed with the relevant Classification free of all requirements and
 recommendations of the relevant Classification Society;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 is
 insured in the manner required by the Finance Documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 has
 been delivered, and accepted for service, under the Charter; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 is
 free of any other charter commitment which would require approval under the
 Finance Documents.

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 any
 prior registration (other than through the relevant Registry in the relevant
 Flag State) of the Ship has been or will (within such period as may be
 approved) cancelled.

 

	
  

 	
  

 	
  

 
	
 4

 	
 Insurance

 
	
  

 	
  

 
	
  

 	
 In relation to the Ship’s Insurances:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 an opinion from insurance consultants appointed by
 the Agent on such Insurances;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 evidence that such Insurances have been placed in
 accordance with clause 23 (Insurance); and

 

103

	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 evidence
 that approved brokers, insurers and/or associations have issued or will issue
 letters of undertaking in favour of the Security Agent in an approved form in
 relation to the Insurances.

 
	
  

 	
  

 	
  

 
	
 5

 	
 ISM and ISPS Code

 
	
  

 	
  

 
	
  

 	
 Copies
 of:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 the
 document of compliance issued in accordance with the ISM Code to the person
 who is the operator of the Ship for the purposes of that code;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the
 safety management certificate in respect of the Ship issued in accordance
 with the ISM Code;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the
 international ship security certificate in respect of the Ship issued under
 the ISPS Code;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 If
 so requested by the Agent, any other certificates issued under any applicable
 code required to be observed by the Ship or in relation to its operation
 under any applicable law.

 
	
  

 	
  

 	
  

 
	
 6

 	
 Value of security

 
	
  

 	
  

 
	
  

 	
 Valuations
 obtained (not more than 30 days before the relevant Utilisation Date) in
 accordance with clause 24 (Minimum security
 value) showing that the Security Value (relative to the Ship) will
 be not less than 120% of the Available Facility upon execution of the
 Security Documents specified in paragraph 2 (Security)
 of this Part of this Schedule.

 
	
  

 	
  

 	
  

 
	
 7

 	
 Construction matters

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 Evidence
 that any authorisations required from any government entity for the export of
 the Ship by the Builder have been obtained or that no such authorisations are
 required.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Evidence
 that the Contract Price of the Ship (as adjusted in accordance with its
 Building Contract) will have been paid upon the relevant Utilisation being
 made (with the Borrower having provided its equity to the Agent prior to the
 Utilisation Date) and that the Builder will not have any lien or other right
 to detain the ship on its Delivery.

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The
 original or a copy, certified by an approved person to be a true and complete
 copy, of the builder’s certificate and any bill of sale conveying title to
 the Ship to the Borrower and the protocol of delivery and acceptance,
 commercial invoice and any other delivery documentation required under the
 Building Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Evidence
 that any amounts of the Price funded by an Affiliate to the Borrower have
 been subordinated to the amounts owing under the Finance Documents in an
 approved manner.

 
	
  

 	
  

 	
  

 
	
 8

 	
 Fees and expenses

 
	
  

 	
  

 
	
  

 	
 Evidence
 that the fees, commissions, costs and expenses that are due from the Borrower
 pursuant to clause 11 (Fees) and
 clause 16 (Costs and expenses)
 have been paid or will be paid by the relevant Utilisation Date.

 
	
  

 	
  

 
	
 9

 	
 Survey report

 
	
  

 	
  

 
	
  

 	
 (if
 required by the Agent) a survey report from approved surveyors obtained not
 more than 10 days before the relevant Utilisation Date evidencing that the
 Ship is seaworthy and capable of safe operation.

 
	
  

 	
  

 
	
 10

 	
 Environmental matters

 

104

	
  

 	
  

 	
  

 
	
  

 	
 (Promptly
 as of Delivery) Copies of the Ship’s certificate of financial responsibility
 and vessel response plan required under United States law and evidence of
 their approval by the appropriate United States government entity and (if
 requested by the Agent) an environmental report in respect of the Ship from
 an approved person.

 
	
  

 	
  

 
	
 11

 	
 Consents

 
	
  

 	
  

 
	
  

 	
 Evidence
 that any consents required in connection with the delivery of the Ship, the
 registration of title to the Ship, the registration of the Mortgage over the
 Ship and the assignment of the Charter have been obtained.

 
	
  

 	
  

 
	
 12

 	
 Legal opinions

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 A
 legal opinion of Norton Rose LLP, London addressed to the Arrangers, the
 Security Agent and the Agent on matters of English law, substantially in the
 form approved by the Agent prior to Delivery.

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 A
 legal opinion of the legal advisers to the Arrangers, the Security Agent and
 the Agent in Korea and also each jurisdiction in which an Obligor is
 incorporated and/or which is or is to be the Flag State of the Ship, or which
 governs any assets which are to be the subject of a Security Interest
 substantially in the form approved by the Agent prior to Delivery.

 

105

Schedule 4

Utilisation Request

	
  

 	
  

 
	
 From:

 	
 Gas-two Ltd.

 
	
 To:

 	
 DNB Bank ASA (formerly DnB NOR Bank ASA)

 
	
 Dated:

 	
 [l]

 

Dear Sirs

$147,500,000

Facility Agreement dated 17 November 2009 (as amended and restated on [•] 2012 (the
“Agreement”)

	
  

 	
  

 
	
 1

 	
 We
 refer to the Agreement. This is a Utilisation Request. Terms defined in the
 Agreement have the same meaning in this Utilisation Request unless given a
 different meaning in this Utilisation Request.

 
	
  

 	
  

 
	
 2

 	
 We
 wish to borrow an Advance on the following terms:

 

	
  

 	
  

 
	
 Proposed Utilisation Date:

 	
 [l] (or, if that is not a Business Day,
 the next Business Day)

 
	
 Amount:

 	
 $[80,000,000] [67,500,000] 

 [Note:
 the maximum amount to be advanced is 65% of the Security Value]

 

	
  

 	
  

 
	
 3

 	
 We confirm that each condition specified in
 clause 4.4 (Further conditions precedent) is
 satisfied on the date of this Utilisation Request.

 
	
  

 	
  

 
	
 4

 	
 The purpose of this Advance is [specify purpose complying with clause 3 of the
 Agreement] and its proceeds should be credited to
 [l] [specify account].

 
	
  

 	
  

 
	
 5

 	
 We request that the first Interest Period for the
 Loan be [●] months.

 
	
  

 	
  

 
	
 6

 	
 This Utilisation Request is irrevocable.

 

	
  

 
	
 Yours
 faithfully

 
	

 

 
	
 authorised
 signatory for

 
	
 GAS-two Ltd.

 

106

Schedule 5

Selection Notice

	
  

 	
  

 
	
 From:

 	
 GAS-two Ltd.

 
	
 To:

 	
 DNB Bank ASA (formerly DnB NOR Bank ASA)

 
	
 Dated:

 	
 [l]

 

Dear Sirs

$147,500,000

Facility Agreement dated 17 November 2009 (as
amended and restated on [•] 2012) (the “Agreement”)

	
  

 	
  

 
	
 1

 	
 We refer to the Agreement. This is a Selection
 Notice. Terms defined in the Agreement have the same meaning in this
 Selection Notice unless given a different meaning in this Selection Notice.

 
	
  

 	
  

 
	
 2

 	
 We request that the next Interest Period for the
 Loan be [l] months.

 
	
  

 	
  

 
	
 3

 	
 This Selection Notice is irrevocable.

 

	
  

 
	
 Yours
 faithfully

 
	

 

 
	
 authorised
 signatory for

 
	
 GAS-two Ltd.

 

107

Schedule 6

Mandatory Cost Formula

	
  

 	
  

 
	
 1

 	
 The
 Mandatory Cost is an addition to the interest rate to compensate Lenders for
 the cost of compliance with (a) the requirements of the Bank of England
 and/or the Financial Services Authority (or, in either case, any other
 authority which replaces all or any of its functions) or (b) the requirements
 of the European Central Bank.

 
	
  

 	
  

 
	
 2

 	
 On
 the first day of each Interest Period (or as soon as possible thereafter) the
 Agent shall calculate, as a percentage rate, a rate (the “Additional
 Cost Rate”) for each Lender, in accordance with the
 paragraphs set out below. The Mandatory Cost will be calculated by the
 Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted
 in proportion to the percentage participation of each Lender in the relevant
 Loan) and will be expressed as a percentage rate per annum.

 
	
  

 	
  

 
	
 3

 	
 The
 Additional Cost Rate for any Lender lending from a Facility Office in a
 Participating Member State will be the percentage notified by that Lender to
 the Agent. This percentage will be certified by that Lender in its notice to
 the Agent to be its reasonable determination of the cost (expressed as a
 percentage of that Lender’s participation in all Loans made from that Facility
 Office) of complying with the minimum reserve requirements of the European
 Central Bank in respect of loans made from that Facility Office.

 
	
  

 	
  

 
	
 4

 	
 The
 Additional Cost Rate for any Lender lending from a Facility Office in the
 United Kingdom will be calculated by the Agent as follows:

 

	
  

 	
  

 	
  

 
	
 (a)

 	
 in relation to a sterling Loan:

 

	
  

 	
  

 	
  

 
	
  

 	
 AB + C(B – D) + E x 0.01

 	
  per cent. per annum

 
	
  

 	
 100 – (A + C)

 

	
  

 	
  

 	
  

 
	
 (b)

 	
 in relation to a Loan in any currency other than
 sterling:

 

	
  

 	
  

 	
  

 
	
  

 	
 E x 0.01

 	
  per cent. per annum.

 
	
  

 	
 300

 

	
  

 	
  

 
	
  

 	
 Where:

 
	
  

 	
  

 
	
 A.

 	
 is
 the percentage of Eligible Liabilities (assuming these to be in excess of any
 stated minimum) which that Lender is from time to time required to maintain
 as an interest free cash ratio deposit with the Bank of England to comply
 with cash ratio requirements.

 
	
  

 	
  

 
	
 B.

 	
 is
 the percentage rate of interest (excluding the Margin and the Mandatory Cost)
 and, if the Loan is an Unpaid Sum, the additional rate of interest specified
 in clause 8.3.1 (Default interest) payable for the relevant Interest Period
 on the Loan.

 
	
  

 	
  

 
	
 C.

 	
 is
 the percentage (if any) of Eligible Liabilities which that Lender is required
 from time to time to maintain as interest bearing Special Deposits with the
 Bank of England.

 
	
  

 	
  

 
	
 D.

 	
 is
 the percentage rate per annum payable by the Bank of England to the Agent on
 interest bearing Special Deposits.

 
	
  

 	
  

 
	
 E.

 	
 is
 designed to compensate Lenders for amounts payable under the Fees Rules and
 is calculated by the Agent as being the average of the most recent rates of
 charge supplied by the Reference Banks to the Agent pursuant to
 paragraph 7 below and expressed in pounds per £1,000,000.

 
	
  

 	
  

 
	
 5

 	
 For
 the purposes of this Schedule:

 

108

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 “Eligible
 Liabilities” and “Special Deposits” have the meanings given
 to them from time to time under or pursuant to the Bank of England Act 1998
 or (as may be appropriate) by the Bank of England;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 “Fees Rules”
 means the rules on periodic fees contained in the FSA Supervision Manual or
 such other law or regulation as may be in force from time to time in respect
 of the payment of fees for the acceptance of deposits;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 “Fee
 Tariffs” means the fee tariffs specified in the Fees Rules under
 activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated
 fee required pursuant to the Fees Rules but taking into account any
 applicable discount rate); and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 “Tariff
 Base” has the meaning given to it in, and will be calculated in
 accordance with, the Fees Rules.

 
	
  

 	
  

 	
  

 
	
 6

 	
 In
 application of the above formulae, A, B, C and D will be included in the
 formulae as percentages (i.e., five per cent. will be included in the formula
 as five and not as 0.05). A negative result obtained by subtracting D from B
 shall be taken as zero. The resulting figures shall be rounded to four
 decimal places.

 
	
  

 	
  

 
	
 7

 	
 If
 requested by the Agent, each Reference Bank shall, as soon as practicable
 after publication by the Financial Services Authority, supply to the Agent,
 the rate of charge payable by that Reference Bank to the Financial Services
 Authority pursuant to the Fees Rules in respect of the relevant financial
 year of the Financial Services Authority (calculated for this purpose by that
 Reference Bank as being the average of the Fee Tariffs applicable to that
 Reference Bank for that financial year) and expressed in pounds per
 £1,000,000 of the Tariff Base of that Reference Bank.

 
	
  

 	
  

 
	
 8

 	
 Each
 Lender shall supply any information required by the Agent for the purpose of
 calculating its Additional Cost Rate. In particular, but without limitation,
 each Lender shall supply the following information on or prior to the date on
 which it becomes a Lender:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 the
 jurisdiction of its Facility Office; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any
 other information that the Agent may reasonably require for such purpose.

 
	
  

 	
  

 	
  

 
	
  

 	
 Each
 Lender shall promptly notify the Agent of any change to the information
 provided by it pursuant to this paragraph.

 
	
  

 	
  

 
	
 9

 	
 The
 percentages of each Lender for the purpose of A and C above and the rates of
 charge of each Reference Bank for the purpose of E above shall be determined
 by the Agent based upon the information supplied to it pursuant to
 paragraphs 7 and 8 above and on the assumption that, unless a Lender
 notifies the Agent to the contrary, each Lender’s obligations in relation to
 cash ratio deposits and Special Deposits are the same as those of a typical
 bank from its jurisdiction of incorporation with a Facility Office in the
 same jurisdiction as its Facility Office.

 
	
  

 	
  

 
	
 10

 	
 The
 Agent shall have no liability to any person if such determination results in
 an Additional Cost Rate which over or under compensates any Lender and shall
 be entitled to assume that the information provided by any Lender or
 Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and
 correct in all respects.

 
	
  

 	
  

 
	
 11

 	
 The
 Agent shall distribute the additional amounts received as a result of the
 Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for
 each Lender based on the information provided by each Lender and each
 Reference Bank pursuant to paragraphs 3, 7 and 8 above.

 
	
  

 	
  

 
	
 12

 	
 Any
 determination by the Agent pursuant to this Schedule in relation to a
 formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to
 a Lender shall, in the absence of manifest error, be conclusive and binding
 on all Parties.

 

109

	
  

 	
  

 
	
 13

 	
 The Agent may from time to time, after consultation with the Borrower
 and the Lenders, determine and notify to all Parties any amendments which are
 required to be made to this Schedule in order to comply with any change in
 law, regulation or any requirements from time to time imposed by the Bank of
 England, the Financial Services Authority or the European Central Bank (or,
 in any case, any other authority which replaces all or any of its functions)
 and any such determination shall, in the absence of manifest error, be
 conclusive and binding on all Parties. 

 

110

Schedule 7 

Form of Transfer Certificate

To:     [l] as Agent 

From: [The
Existing Lender] (the Existing
Lender) and [The New Lender]
(the New Lender) 

Dated: 

$147,500,000 Facility Agreement
dated 17 November 2009 (as amended and restated on [l]
2012) (the “Agreement”)

	
  

 	
  

 	
  

 
	
 1

 	
 We refer to the Agreement. This is a Transfer Certificate. Terms
 defined in the Agreement have the same meaning in this Transfer Certificate
 unless given a different meaning in this Transfer Certificate. 

 
	
  

 	
  

 	
  

 
	
 2

 	
 We refer to clause 29.5 (Procedure
 for transfer): 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 The Existing Lender and the New Lender agree to the Existing Lender
 assigning to the New Lender all or part of the Existing Lender’s Commitment
 rights and assuming the Existing Lender’s obligations referred to in the
 Schedule in accordance with clause 29.5 (Procedure
 for transfer) and the Existing Lender assigns and agrees to assign
 such rights to the New Lender with effect from the Transfer Date] 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 The proposed Transfer Date is [●]. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The Facility Office and address, fax number and attention details for
 notices of the New Lender for the purposes of clause 36.2 (Addresses) are set out in the Schedule. 

 
	
  

 	
  

 	
  

 
	
 3

 	
 The New Lender expressly acknowledges the limitations on the Existing
 Lender’s obligations set out in clause 29.4.3. 

 
	
  

 	
  

 	
  

 
	
 4

 	
 This Transfer Certificate may be executed in any number of
 counterparts and this has the same effect as if the signatures on the
 counterparts were on a single copy of this Transfer Certificate. 

 
	
  

 	
  

 	
  

 
	
 5

 	
 This Transfer Certificate and any non-contractual obligations
 connected with it are governed by English law. 

 

111

The Schedule

Commitment/rights to be assigned and obligations to be assumed

[insert
relevant details]

Facility Office address, fax number

and attention details for notices and account details for payments

[insert
relevant details]

	
  

 	
  

 
	
  [Existing
 Lender]

 	
  [New Lender]

 
	
 By:

 	
 By:

 

This Transfer Certificate is accepted by the
Agent and the Transfer Date is confirmed to be as stated above.
 [Agent]
By:

112

SIGNATURES

	
  

 	
  

 
	
 THE
 BORROWER 

 	
  

 
	
  

 	
  

 
	
 GAS-two
 Ltd.

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	
  

 
	
 THE
 ARRANGERS

 	
  

 
	
  

 	
  

 
	
 DNB
 BANK ASA

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	
  

 
	
 NATIONAL
 BANK OF GREECE S.A.

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	
  

 
	
 UBS
 AG

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	
  

 
	
 THE
 AGENT

 	
  

 
	
  

 	
  

 
	
 DNB
 BANK ASA

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	
  

 
	
 THE
 SECURITY AGENT

 	
  

 
	
  

 	
  

 
	
 DNB
 BANK ASA

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	
  

 
	
 THE
 LENDERS

 	
  

 
	
  

 	
  

 
	
 DNB
 BANK ASA

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	
  

 
	
 NATIONAL
 BANK OF GREECE S.A.

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 

113

	
  

 	
  

 
	
 UBS AG

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 

114

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