Document:

d1184224_ex4-21.htm

Exhibit 4.21

 

ADDENDUM NO. 2

TO A CHARTER ANCILLARY AGREEMENT DATED 20” JUNE, 2005

 

This addendum no. 2 (the “Addendum No. 2”) to the charter ancillary agreement between the parties hereto dated 20 June 2005 as amended by the addendum no. 1 thereto dated 21 August 2007 is entered into on this 25th day of March 2010 by and between:

 

	
(1)

	
SHIP FINANCE INTERNATIONAL LIMITED (the “Company”);

 

	
(2)

	
THE VESSEL OWNING SUBSIDIARIES LISTED IN SCHEDULE A HERETO (the “Owners”);

 

	
(3)

	
FRONTLINE LTD. (“Frontline”); and

 

	
(4)

	
FRONTLINE SHIPPING II LIMITED (the “Charterer”); (each a “Party” and together the “Parties”.)

     

WHEREAS:

 

	
(A)

	
The Parties are parties to a charter ancillary agreement dated 20th June, 2005 as amended by an addendum no. 1 thereto dated 21 August 2007 (together, the “Agreement”), setting forth, inter alia, the terms of certain arrangements supporting and securing the Charterer’s ability to pay charter hire under separate charterparties between the Charterer and each of the Owners.

 

	
(B)

	
Under the terms of the Agreement, the Charterer has established a Charter Service Reserve.

 

	
(C)

	
The Parties have subsequently agreed to make certain changes to the Agreement and the Performance Guarantee notably by reducing the Minimum Reserve (and thus allowing the Charterer to return funds to Frontline), expanding Frontline’s obligations under the Performance Guarantee to include a guarantee for the Charterer’s obligations to pay Charter Hire and reducing Frontline’s obligations under the Performance Guarantee by removing Frontline Management’s obligations under the Management Agreements and the Administrative Service Agreement from the guaranteed obligations.

 

	
(D)

	
This Addendum No. 2 is entered into in order to document the changes to the Agreement.

 

1.            DEFINITIONS

 

Terms and expressions defined in the Agreement shall have the same meaning in this Addendum No. 2, unless otherwise explicitly stated herein.

 

2.            AMENDMENTS

 

The Parties agree that the definitions of “Minimum Reserve” and “Performance Guarantee” in the Agreement shall be deleted and replaced with the following:

 

“Minimum Reserve” means US$10,000,000 (provided, however, that the Minimum Reserve shall be reduced by an amount equal to US$2,000,000 upon the termination of any Charter after 25 March 2010 other than by reason of default by the Charterer under the Agreement or the Charters).

 

“Performance Guarantee” means the performance guarantee issued by Frontline in favor of the Company and the Owners on 16th June 2005 as subsequently amended by an addendum no. 1 thereto dated 25 March, 2010.

 

  

  

  

 

 

The Parties furthermore agree that paragraph (d) of the definition of “Event of Default” in the Agreement shall be deleted and replaced with the following:

 

“(d) the failure of the Charterer at any time to hold Cash or Cash Equivalents at least equal to the applicable Minimum Reserve.”

 

The Parties furthermore agree to delete the words “(other than the payment of charter hire)” and “and the obligations of Frontline Management under the Management Agreements and the Administrative Services Agreement” under the sixth Recital to the Agreement, so that this provision shall read:

 

“WHEREAS, pursuant to the Performance Guarantee, Frontline has agreed to guarantee the performance of the obligations of the Charterer under the Charters and this Agreement;”,

 

3.    MISCELLEANEOUS

 

The Parties hereto agree that the provisions of the Agreement as amended by this Addendum No. 2 shall be identical to those in existence prior to the execution of this Addendum No. 2 save insofar as the same have been amended hereby, and that all references in the Agreement to the term “this Agreement” shall be deemed to be references to the Agreement as confirmed and amended hereby and references to “the Agreement”, “hereof”, “hereunder”, “herein” and kindred expressions shall be construed accordingly.

 

The Parties agree that this Addendum No. 2 shall be governed by the laws of England and Wales and that any disputes arising hereunder shall be subject to the same dispute resolution mechanism as provided for under Section 7.3 of the Agreement.

 

This Addendum No. 2 shall become effective on the date of the Parties’ signature hereof.

IN WITNESS WHEREOF the duly authorized representatives of the Parties hereto have caused this Addendum No. 2 to be executed on the day and year first above written.

	
For and on behalf of

	  	
For and on behalf of

	
SHIP FINANCE INTERNATIONAL LIMITED

	  	
FRONTLINE LTD.

	  	  	  
	  	  	  
	
/s/ Harald Gurvin

	  	
/s/ Margnus Vaaler

	
Signature

	  	
Signature

	
HARALD GURVIN

ATTORNEY-IN-FACT

	  	
Magnus Vaaler

Attorney-in-fact

	
Name with block letters

	  	
Name with block letters

	  	  	  
	  	  	  
	  	  	  

	
For and on behalf of

	  	
for and on behalf of

	
ULTIMATE SHIPPING LIMITED

MILLCROFT MARITIME SA

GOLDEN NARROW CORPORATION

HUDSON BAY MARINE COMPANY LIMITED

NEWBOND SHIPPING COMPANY LIMITED

 

	  	
FRONTLINE SHIPPING II LIMITED

	
/s/ Harald Gurvin

	  	
/s/ Margnus Vaaler

	
Signature

	  	
Signature

	
HARALD GURVIN

ATTORNEY-IN-FACT

	  	
Magnus Vaaler

Attorney-in-fact

	
Name with block letters

	  	
Name with block letters

	  	  	  
	  	  	  
	  	  	  

 

 

  

  

  

 

Schedule A

ULTIMATE SHIPPING LIMITED

MILLCROFT MARITIME SA

GOLDEN NARROW CORPORATION

HUDSON BAY MARINE COMPANY LIMITED

NEWBOND SHIPPING COMPANY LIMITEDExhibit
4.79

Shaowu City Qianling
Hydroelectric Station Grid Connection Agreement

 This Agreement is entered into by and between Shaowu Power Supply
Bureau (hereinafter “Party A”) and Shaowu City Jinling Power Generation Co.,
Ltd. (Qianling Hydroelectric Station) (hereinafter “Party B”).

 In order to strengthen a unified management of grid, define each
Party’s responsibilities, ensure an orderly power generation, supply and
consumption, as well as a safe, economical and rational use of electricity,
Party A and Party B have consulted each other in the principle of “equality and
mutual benefit, common
observation”, and enter into the following agreement:

	
  

 	
  

 	
  

 
	
 1

 	
 Basic Information

 
	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 the
 installed capacity of the Station: 10,000 kW;

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 the
 annual power generation of the Station: the designed target of the annual
 power generation is 37,000,000 kWh; the annual power utilization time is
 3,700 hours;

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 grid
 connection method: Party B shall transmit electricity to Shaikou Power Transformer
 Station to be connected to the grid by 35kV Shaiqian line; 

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 main
 transformer of the Station: the capacity of the main transformer of the Station
 is 6,300 kVA; 35 KV/0.4kV;

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 electricity
 used by the Station: If Party B stops operation of the whole Station,
 electricity it needs shall be supplied from Party A’s grid. In such a case,
 consumption of electricity of the Station shall be calculated by the actual
 use of the whole Station on a monthly basis. Party A shall invoice Party B
 for the payment of tariff. 

 
	
  

 	
  

 	
  

 
	
 2

 	
 Maintenance and
 Management

 
	
  

 	
  

 
	
  

 	
 1.

 	
 Party
 A and Party B agree that the property rights demarcation point shall be set
 at the T connection point of pole #01 of the 35kV Shaiqian line. The property
 right of the section from the property right demarcation point to the Station
 shall belong to Party B and be maintained by Party B; the property right of
 the section from the property right demarcation point to the Shaiqian line
 shall belong to Party A and be maintained by Party A.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Party
 B shall maintain and manage the property right demarcation point in
 accordance with the rules of Party A or its supply office. When Party A or
 its supply office requires Party B to stop operation of the Station by
 disconnecting generators in order to check the on-grid line and take safety
 measures, Party B shall unconditionally abide by such instructions and do a
 good job in taking safety measures and preventing any internal reverse
 transmission of electricity to the line being checked.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 If
 the electricity to be used by the Station itself is transmitted reversely
 into the grid when Party A’s line is being inspected or repaired in the
 Station resulting in an accident, Party B shall be solely liable for the
 accident and pay an indemnity. Moreover, Party A shall have the right to
 disconnect the generators or stop purchasing electricity generated by the Station.
 

 
	
  

 	
  

 	
  

 
	
 3

 	
 Measurement and
 Tariff Calculation

 
	
  

 	
  

 
	
  

 	
 1.

 	
 Electric
 quantity measuring devices shall be deployed and managed in accordance with
 the power industry’s standards set forth in the Electric Quantity Measuring
 Device Technical Management Regulations (DL/T448—2000). Party A and Party B
 agree after consultation to set the electric quantity measuring point at the
 35 kV gateway of the Party B’s Station and install one full motion-control
 active electric quantity measuring device and one reactive

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 electric
 quantity measuring device, both with the accuracy degree of 0.2. Party A
 shall be responsible for daily supervision, calibration and management of the
 electric quantity measuring devices, the ownership of which belongs to Party
 B.

 
	
  

 	
  

 
	
  

 	
 2.

 	
 Party
 B shall abide by the unified dispatching arrangement of the provincial grid,
 generate electricity in accordance with the active operational curve and
 reactive operational curve assigned by the dispatching office. The assessment
 of Party B’s electric quantity generated and the power factor as well as the
 tariff calculation for the active and reactive electric quantity shall be
 conducted in accordance with relevant provisions of the document (Min Dian
 Ying [2000] No. 1265).

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 The
 method of the on-grid electricity fees calculation is as follows: Party B’s
 figures for tariff calculation shall be the readings on the electric quantity
 measuring devices at 9:00 AM of 28th each month and be confirmed by both
 Parties. In the event either Party has discovered any breakdown of such
 devices, it shall promptly notify the other Party and correct the device
 concerned in conjunction with relevant departments. The on-grid electric
 quantity shall be calculated as follows: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 on-grid tariff shall follow the tariff approved by the price administrative
 authorities, and verified and approved by the relevant department of the
 provincial power administrative bureau.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Form
 and date of payment: Party B shall submit to Party A its previous month’s
 tariff settlement data in respect of its on-grid electric quantity within 5
 days after the taking of the readings, as well as the dedicated invoice in
 respect of the previous month’s VAT at the rate of 6% of the electricity fees
 (which must be in compliance with laws and regulations) within 5 days after
 the taking of readings. After receiving this invoice, Party A shall pay the
 electricity fees for the previous month’s on-grid electric quantity to Party
 B before 25th of the current month. 

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Party
 A shall maintain the electric quantity measuring devices regularly in
 accordance with relevant provisions of the regulations, and request the
 provincial power experiment and research institute and Shaowu Power Supply
 Bureau to calibrate the on-grid kilowatt-hour meters. Party B must not
 willfully make changes to the electric quantity return circuit or break the
 seal on the electric quantity measuring devices. In case of any abnormal
 measurement in the course of operation, it shall be promptly notified to
 Party A and Party B.

 
	
  

 	
  

 	
  

 
	
 4 

 	
 Conditions for Grid Connection 

 
	
  

 	
  

 
	
  

 	
 1.

 	
 Party
 B must satisfy the following conditions for connecting the units of its small
 hydroelectric stations to the grid:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.1

 	
 The
 units, boost converters, relevant switch stations, relay protection and
 auxiliary equipment of the stations under Party B are established according
 to designs, complete, and must pass an all-round test and acceptance
 inspection before being put into production.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.2

 	
 The
 main and auxiliary equipment of the units of Party B is complete, and must
 pass an all-round test and acceptance inspection before being put into
 operation.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.3

 	
 The
 two independent dedicated communication facilities between Party B and the
 dispatching centre of Shaowu Power Supply Bureau must be tested and proved to
 be qualified in the presence of both Parties, their equipment is complete,
 and the facilities have already been put into operation.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.4

 	
 The
 grid administrative department of the provincial power company shall be
 responsible for the examination and approval of the above grid connection
 conditions.

 

- 2 /
5 -

	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Shaowu
 Power Supply Bureau shall issue an examination opinion in respect of the Station’s
 relay protection, safe and automatic devices, etc. to Party B within 10 days
 after the date of receipt of all information and materials.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Party
 B shall complete the test of each unit, compile the test data, and submit the
 same to Shaowu Power Supply Bureau.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Party
 B shall be responsible for the preparatory work before the operation of the Station,
 and submit an approved name list of persons on duty and principal persons in
 charge of the Station, as well as its communication guidelines to Shaowu
 Power Supply Bureau before the date of first connection to the grid. The
 dispatching centre of Shaowu Power Supply Bureau shall complete the
 preparatory work before the date of first connection to the grid, and provide
 a name list of dispatching persons on duty and principal persons in charge,
 as well as its communication guidelines to Party B before the date of first
 connection to the grid.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 Party
 B shall notify the dispatching centre the date of proposed first connection to
 the grid of each unit in writing, and also the commencement procedures and
 the commissioning program of the on-grid units 10 days in advance. The
 dispatching centre of Shaowu Power Supply Bureau shall give its opinion
 within 10 days after the receipt of Party B’s notice stating the proposed
 date of the first connection to the grid. Party A and Party B shall endeavor
 to discuss and determine the commencement procedures and the commissioning
 program within 10 days without violating the conditions set out in this
 section. 

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 Party
 B must formulate a strict and complete technical measures statement to ensure
 the safety of the large grid in the course of grid connection, and file the
 same to the dispatching centre and the production office of Shaowu Power
 Supply Bureau for record.

 
	
  

 	
  

 	
  

 
	
 5

 	
 Miscellaneous

 
	
  

 	
  

 
	
  

 	
 1.

 	
 Party
 B may not directly supply power to users except for the production and daily
 life in the area under its management.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 Party
 A and Party B shall separately enter into a dispatching agreement and an
 electricity fees agreement in accordance with the Grid Dispatching
 Administrative Regulations, and shall be attached as schedules to this
 Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 Party
 A and Party B shall each be responsible for the maintenance of its
 proprietary equipment in strict accordance with this Agreement. In case of
 any losses caused by a line trip to a Party as a result of breach of contract
 by the other Party, the breaching Party shall be liable to compensate the
 non-breaching Party.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Party
 B shall make good on the spot for the reactive electric quantity; Party A shall
 not set off such reactive electric quantity. 

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 The
 term of this Agreement shall commence on 19 October 2000 and end on 18
 October 2001. In case of any differences in opinion, the Parties may
 separately enter into a supplementary agreement. If there is no difference in
 opinion by the date of expiration of this Agreement, this Agreement shall
 continue to be effective. This Agreement shall come into force only when it
 is affixed with the official seals of both Parties.

 
	
  

 	
  

 	
  

 
	
  

 	
 6.

 	
 If
 this Agreement contravenes any provisions of the state or competent authorities,
 follow the relevant provisions of the state or the competent authorities.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.

 	
 Matters
 not covered in this Agreement shall be resolved by both Parties through
 consultations. In case of any dispute, such dispute may be settled by the
 provincial power company.

 
	
  

 	
  

 	
  

 
	
  

 	
 8.

 	
 This
 Agreement shall be executed in four original copies; each Party shall hold 2
 copies.

 

- 3 /
5 -

	
  

 	
  

 
	
  

 	
 Party A: 

 
	
  

 	
  

 
	
  

 	
 Legal Representative: 

 
	
  

 	
  

 
	
  

 	
 19 October 2000

 
	
  

 	
  

 
	
  

 	
 Party B: 

 
	
  

 	
  

 
	
  

 	
 Legal Representative: (seal of Wang
 Wangqing affixed) 

 
	
  

 	
  

 
	
  

 	
 19 October 2000 

 

- 4 / 5 -

Property Rights Demarcation Diagram

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