Document:

Exhibit 4.36.5

 

 

Date
18 March 2004

 

 

KTL MAYFAIR, INC.

as Owner

 

 

-and-

 

 

THE ROYAL BANK OF SCOTLAND plc

as Lender

 

 

GENERAL ASSIGNMENT

 

 

relating to
m.v. “MAYFAIR”

 

 

WATSON, FARLEY & WILLIAMS

London

 

 

INDEX

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1

  	
  DEFINITIONS AND
  INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  COVENANT TO PAY

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  ASSIGNMENTS AND
  FLOATING CHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  EARNINGS, INSURANCES AND REQUISITION
  COMPENSATION

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  PROTECTION OF SECURITY

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  ENFORCEABILITY AND
  LENDER’S POWERS

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  APPLICATION OF MONEYS

  	
   

  
	
   

  	
   

  	
   

  
	
  10

  	
  FURTHER ASSURANCES

  	
   

  
	
   

  	
   

  	
   

  
	
  11

  	
  POWER OF ATTORNEY

  	
   

  
	
   

  	
   

  	
   

  
	
  12

  	
  INCORPORATION
  OF LOAN AGREEMENT PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  13

  	
  SUPPLEMENTAL

  	
   

  
	
   

  	
   

  	
   

  
	
  14

  	
  LAW AND JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTION PAGE

  	
   

  

 

 

 

THIS DEED is made
on 18 March 2004

 

BETWEEN

 

(1)           KTL MAYFAIR, INC., a company incorporated in Liberia whose registered office is at 80
Broad Street, Monrovia, Liberia (the “Owner”); and

 

(2)           THE ROYAL BANK OF SCOTLAND
plc, acting through its office at Shipping Business
Centre, 5-10 Great Tower Street, London EC3P 3HX (the “Lender” which expression
includes its successors and assigns)

 

BACKGROUND

 

(A)          By a loan agreement dated 2 March 2004 and made
between (i) Knightsbridge Tankers Limited (the “Borrower”), (ii) KTL
Hampstead, Inc., KTL Chelsea, Inc., KTL Camden, Inc., KTL Kensington, Inc. and
the Owner and (iii) the Lender it was agreed that the Lender would make
available to the Borrower a facility of up to US$140,000,000 by way of up to
five (5) separate advances.

 

(B)           By certain agreements (each a “Daylight Funding Agreement”)
dated
                                        2004
and made between, among others, each New Owner and the Lender it was agreed
that the Lender would advance to each New Owner by way of a single advance and
by way of overdraft a facility of approximately US$40,000000 per New Owner for
the purpose of financing the balance of that New Owner’s obligation to pay the
purchase price of the Ship to be acquired by it in excess of the amount
available for that purpose under the Loan Agreement.  By the guarantee contained in clause 10 of the Loan Agreement
each New Owner guarantees the liabilities of each other New Owner under, inter
alia, its Daylight Funding Agreement.  A
copy of the form of each Daylight Funding Agreement is annexed to the Mortgage
(the “Mortgage”)
marked “B”.

 

(C)           It is one of the conditions precedent to (i) the
availability of the facility under the Loan Agreement and (ii) the facility
under the Owner’s Daylight Funding Agreement that the Owner executes, delivers
and registers a Mortgage and enters into this Deed.

 

(D)          The Owner has executed a Mortgage in favour of the
Lender.

 

(E)           This Deed supplements the Loan Agreement and the
Mortgage executed by the Owner and is one of the General Assignments referred
to in the Loan Agreement.

 

IT IS AGREED as
follows:

 

1              DEFINITIONS AND INTERPRETATION

 

1.1          Defined expressions.  Words and expressions defined in the Loan
Agreement shall have the same meanings when used in this Deed unless the
context otherwise requires.

 

1.2          Definitions.  In this Deed, unless the contrary intention appears:

 

“Charter”  means any charter relating to the Ship, or
other contract for its employment, whether or not already in existence;

 

 

“Charter
Guarantee” means any guarantee, bond, letter of credit or other
instrument (whether or not already issued) supporting a Charter;

 

“Loan
Agreement”  means the loan
agreement dated 2 March 2004 referred to in Recital (A);

 

“Receiver”  means any receiver and/or manager (or joint
receivers and/or managers) appointed under Clause 8.3;

 

“Secured
Assets”  means those assets
of the Owner:

 

(a)           mortgaged or charged by
Clause 3.1; or

 

(b)           covered by the floating
charge in Clause 3.2; or

 

(c)           mortgaged or charged by any
other Finance Document to which the Owner is a party;

 

“Secured
Liabilities”  means all
liabilities which the Borrower, the New Owners, the other Security Parties or
any of them have, at the date of this Deed or at any later time or times, to
the Lender under or in connection with any Finance Document or the Master
Agreement or any judgment relating to any Finance Document or the Master
Agreement (including, without limitation, the liabilities of the New Owners as
joint and several guarantors of the liabilities of the Borrower and each other
New Owner, as contained in clause 10 of the Loan Agreement); 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; and

 

“Ship”  means the vessel  “MAYFAIR” documented in the name of the Owner under the laws and
flag of the Marshall Islands under Official Number 2028 and includes any share
or interest in that vessel and its engines, machinery, boats, tackle, outfit,
spare gear, fuel, consumable or other stores, belongings and appurtenances
whether on board or ashore and whether now owned or hereafter acquired.

 

1.3          Application of construction and interpretation provisions of Loan
Agreement. 
Clauses 1.2 and 1.5 of the Loan Agreement apply, with any necessary
modifications, to this Deed.

 

1.4          Inconsistency between Loan Agreement provisions and this Deed.  This Deed shall be read
together with the other Finance Documents, but in case of any conflict between
the Loan Agreement and this Deed, the provisions of the Loan Agreement shall prevail.

 

1.5          Continuing effect after discharge of Mortgage.  Notwithstanding that this
Deed supplements the Loan Agreement and the Mortgage, it shall continue in full
force and effect after any discharge of the Mortgage.

 

1.6          Inconsistency between provisions of specific mortgages and this
Deed.  Any
specific mortgage which the Owner may effect in respect of any Charter or
Charter Guarantee to secure the Secured Liabilities shall be in addition to
this Deed; but in the event of any conflict between the provisions of such a
mortgage and the provisions of this Deed, the

 

2

 

provisions of the mortgage shall prevail; and for this purpose “mortgage”
includes assignment and charge.

 

2              COVENANT TO PAY

 

2.1          Covenant to pay Secured Liabilities.  The Owner covenants with the Lender:

 

(a)           duly
and punctually to pay the Secured Liabilities; and

 

(b)           to
observe and perform all its other obligations under the Finance Documents.

 

3              ASSIGNMENTS AND FLOATING CHARGE

 

3.1          Assignments.  The Owner, with full title guarantee, assigns to the Lender
absolutely all rights and interests which now or at any later time it has to,
in or in connection with:

 

(a)           the
Earnings;

 

(b)           the
Insurances;

 

(c)           any
Charter;

 

(d)           any
Charter Guarantee; and

 

(e)           any
Requisition Compensation.

 

Each Security Interest created by each
paragraph in this Clause 3.1 is a separate and independent Security Interest
and if any one of them is to be construed and categorised as a floating charge
that shall not result in the others being so construed or categorised.

 

3.2          General floating charge.  As security for payment of the Secured
Liabilities, the Owner charges in favour of the Lender, by way of first
floating charge and (where applicable) with full title guarantee, all its
undertaking and all its assets whatsoever and wheresoever, both present and
future, except those assets mortgaged or charged by Clause 3.1 or by any other
Finance Document to which the Owner is a party.

 

3.3          Continuing security.  This Deed shall remain in force until the
end of the Security Period as a continuing security and, in particular:

 

(a)           the
Security Interests created by Clauses 3.1 and 3.2 shall not be satisfied by any
intermediate payment or satisfaction of the Secured Liabilities;

 

(b)           the
Security Interests created by Clauses 3.1 and 3.2, and the rights of the Lender
under this Deed, are only capable of being extinguished, limited or otherwise
adversely affected by an express and specific term in a document signed by or
on behalf of the Lender;

 

(c)           no
failure or delay by or on behalf of the Lender to enforce or exercise a
Security Interest created by Clause 3.1 or Clause 3.2 or a right of the Lender
under this Deed, and no act, course of conduct, acquiescence or failure to act
(or to prevent the Owner from taking certain action) which is inconsistent with
such a Security Interest or such a right or with such a Security Interest being
a fixed security shall preclude or estop the Lender (either permanently or
temporarily) from enforcing or exercising it or result in a Security Interest
expressed to be a fixed security taking effect as a floating security; and

 

3

 

(d)           this
Deed shall be additional to, and shall not in any way impair or be impaired by:

 

(i)            any
other Security Interest whether in relation to property of the Owner or that of
a third party; or

 

(ii)           any
other right of recourse as against the Owner or any third party,

 

(iii)          which
the Lender now or subsequently has in respect of any of the Secured
Liabilities.

 

3.4          No obligations imposed on Lender.  The Owner shall remain liable to perform all
obligations connected with the Secured Assets and the Lender shall not, in any
circumstances, have or incur any obligation of any kind in connection with the
Secured Assets.

 

3.5          Notice of assignment.  The Owner shall, upon the written request of
the Lender, give written notice (in such form as the Lender shall require) of
the assignments contained in Clause 3.1 to any person from whom any part of the
Secured Assets is or may be due.

 

3.6          Negative pledge; disposal of assets.  The Owner shall not sell, create any
Security Interest not exclusively securing the Secured Liabilities over or
otherwise dispose of any items of the Secured Assets or any right relating to
any item of the Secured Assets. 
However, this Clause 3.6 does not apply to the assets covered by the
floating charge in Clause 3.2.

 

3.7          Release of security.  At the end of the Security Period, the
Lender will, at the request and cost of the Owner, re-assign (without any
warranty, representation, covenant or other recourse) to the Owner such rights
as the Lender then has to, or in connection with, the assets assigned in Clause
3.1 and release the floating charge created in Clause 3.2.

 

3.8          Insolvency Act 1986.  Paragraph 14 of Schedule B1 to the
Insolvency Act 1986 applies to the floating charge created by Clause 3.2 and to
any other charge created by this Deed which is to be construed and categorised
as a floating charge.

 

4              EARNINGS, INSURANCES AND REQUISITION COMPENSATION

 

4.1          Receipt of Earnings.  The Earnings shall be paid to the Operating
Account of the Owner for application in accordance with clause 17 of the Loan
Agreement until an Event of Default occurs, whereupon:

 

(a)           the
Owner shall forthwith, and the Lender may at any time thereafter, instruct all
persons from whom the Earnings are due to pay them to the Lender or as it may
direct; and

 

(b)           any
sum in respect of Earnings then held by the Owner’s brokers, bankers or other
agents or representatives shall be deemed to have been received by and to be
held by them on trust for the Lender.

 

4.2          Receipt of Insurances before an Event of Default.  Before an Event of Default
occurs, sums recoverable in respect of the Insurances shall be payable as
follows:

 

(a)           any
sum recoverable in respect of a Total Loss under the Insurances against fire
and usual marine risks and war risks shall be paid to the Lender; and

 

4

 

(b)           any
sum recoverable in respect of a Major Casualty under the Insurances against
fire and usual marine risks and war risks shall be paid to the Lender but so
that:

 

(i)            the
sum received by the Lender shall be paid over to the Owner upon the Owner
providing evidence satisfactory to the Lender that all loss and damage
resulting from the casualty has been properly made good and repaired and that
all repair accounts and other liabilities connected with the casualty have been
paid by the Owner; and

 

(ii)           the
insurers with whom the fire and usual marine risks and war risks insurances are
effected may in the case of any Major Casualty, and with the prior written
consent of the Lender make payment on account of the repairs which are being
carried out; and

 

(c)           any
other sum recoverable under the Insurances against fire and usual marine risks
and war risks shall be paid to the Owner which shall apply it in making good
the loss and fully repairing all damage in respect of which that insurance
money was received; and

 

(d)           any
sum recoverable under the Insurances against protection and indemnity risks
shall be paid direct to the person to whom was incurred the liability to which
such sum relates (or to the Owner in reimbursement to it of moneys expended to
discharge that liability).

 

4.3          Receipt of Insurances after an Event of Default.  On or after the occurrence
of an Event of Default any sums recoverable under the Insurances shall be
payable to the Lender.

 

4.4          Receipt of Requisition Compensation.  Any Requisition Compensation shall at all times
be payable to the Lender.

 

5              REPRESENTATIONS AND WARRANTIES

 

5.1          General.  The Owner represents and warrants to the Lender as follows.

 

5.2          Repetition of Loan Agreement representations and warranties.  The representations and
warranties in clause 11 of the Loan Agreement remain true and not misleading if
repeated on the date of this Deed with reference to the circumstances now
existing.

 

5.3          No Charter.  Except as disclosed by the Owner to the Lender in writing, the
Ship is not subject to any Charter.

 

5.4          Compliance with Environmental Laws.  All Environmental Laws relating to its
ownership, operation and management and the business of the Owner (as now
conducted and as reasonably anticipated to be conducted in the future) have
been complied with.

 

5.5          No Environmental Claim.  No Environmental Claim has been made or
threatened against the Owner or otherwise in connection with the Ship.

 

5.6          No Environmental Incident.  No Environmental Incident has occurred and
no person has claimed that an Environmental Incident has occurred.

 

5

 

6              COVENANTS

 

6.1          General.  The Owner shall comply with the following provisions of this
Clause 6 at all times during the Security Period except as the Lender may
otherwise permit.

 

6.2          Insurance and Ship covenants.  The Owner shall comply with the provisions
of clauses 14 (insurance) and 15 (ship covenants) of the Loan Agreement.

 

7              PROTECTION OF SECURITY

 

7.1          Lender’s right to protect or maintain security.  The Lender may take any action
which it may think fit for the purpose of protecting or maintaining the
security created by this Deed or for any similar or related purpose.

 

7.2          Lender’s right to insure, repair etc.  Without limiting the generality of Clause
7.1, if the Owner does not comply with Clause 6, the Lender may:

 

(a)           effect,
replace and renew any Insurances;

 

(b)           arrange
for the carrying out of such surveys and/or repairs of the Ship as it deems
expedient or necessary; and

 

(c)           discharge
any liabilities charged on the Ship, or otherwise relating to or affecting it,
and/or take any measures which the Lender may think expedient or necessary for
the purpose of preventing its arrest and securing its release.

 

8              ENFORCEABILITY AND LENDER’S POWERS

 

8.1          Right to enforce security.  If an Event of Default occurs and
irrespective of whether a notice has been served under clause 18.2 of the Loan
Agreement (and without the necessity for any court order in any jurisdiction to
the effect that an Event of Default has occurred or that the security
constituted by this Deed has become enforceable):

 

(a)           the
security constituted by this Deed shall immediately become enforceable for all
purposes (including those of paragraph 14 of Schedule B1 of the Insolvency Act
1986); and

 

(b)           the
Lender shall be entitled at any time or times to serve a notice on the Owner
crystallising each charge created by this Deed which is a floating charge; and

 

(c)           the
Lender shall be entitled at any time or times to exercise the powers set out in
this Clause 8 and in any other Finance Document; and

 

(d)           the
Lender shall be entitled at any time or times:

 

(i)            to
exercise the powers possessed by it as assignee of any item of the Secured
Assets conferred by the law of any country or territory in which any item of
the Secured Assets is physically present or deemed to be sited the courts of
which have or claim any jurisdiction in respect of the Owner or any item of the
Secured Assets; and

 

6

 

(ii)           without
limiting the scope of the Lender’s powers under sub-paragraph (i), to exercise
the powers possessed by it as a creditor or as a person with a Security
Interest in any item of the Secured Assets conferred by English law.

 

8.2          Right to take possession, sell etc.  On the occurrence of an Event of Default,
the Lender shall be entitled then or at any later times or times:

 

(a)           to
require that all policies and other documents relating to the Insurances
(including details of and correspondence concerning outstanding claims) be
forthwith delivered to or to the order of the Lender;

 

(b)           to
collect, recover and give a good discharge for any moneys or claims forming
part of, or arising in relation to, any item of the Secured Assets and to
permit any brokers through whom collection or recovery is effected to charge
the usual brokerage therefor;

 

(c)           to
take over or commence or defend (if necessary using the name of the Owner) any
claims or proceedings relating to, or affecting, any item of the Secured Assets
which the Lender may think fit and to abandon, release or settle in any way any
such claims or proceedings; and

 

(d)           generally,
to enter into any transaction or arrangement of any kind and to do anything in
relation to any item of the Secured Assets which the Lender may think fit.

 

8.3          Power to appoint receiver.  The Lender shall have the power, at any time
after the Security Interests created by this Deed have become enforceable, to
appoint a receiver or joint receivers of all the Secured Assets or of such item
of the Secured Assets as may be specified or described in the appointment; and,
unless the appointment otherwise provides, it shall be deemed to cover the
whole or substantially the whole of the Secured Assets.

 

8.4          Administrative receiver.  If the appointment of the receiver or the joint receivers under
Clause 8.3 covers the whole or substantially the whole of the Secured Assets,
he or they shall be an administrative receiver or administrative receivers,
unless the provisions of the Insolvency Act 1986 relating to an administrative
receiver are not applicable to a receiver of property of a company such as the
Owner.

 

In that case, section 42 of the Insolvency
Act 1986 and Schedule 1 to that Act (general powers of an administrative
receiver) shall nevertheless be deemed to be incorporated into this Deed with
any necessary modifications.

 

8.5          Receivers’ powers in relation to Ship.  Without prejudice to Clause 8.4, it is specifically
declared that, if the appointment of a Receiver comprises the Ship, he shall
have power to commence, defend and settle any proceedings or take any other
steps with a view or relating to the arrest of the Ship or in connection with
any other matter relating to the Ship, to operate the Ship (and to issue bills
of lading and other documents in the name of the Owner), to enter into
charterparties, insurances and other contracts in respect of the Ship, to sell
the Ship and to do all things which appear to the Receiver to be conducive to
or connected with any of the foregoing.

 

8.6          Administrator.  To the intent that the Lender shall be the holder of a qualifying
floating charge in respect of the Owner’s property for the purposes of the
Insolvency Act 1986 and the Enterprise Act 2002, it is hereby declared that, in
addition to the power to appoint

 

7

 

a receiver or an administrative receiver contained in Clause 8.3, the
Lender shall have power, after all relevant floating charges have become
enforceable, to appoint an administrator of the Owner or, at the option of the
Lender, to apply to the court for an administration order in respect of the
Owner.

 

8.7          Supplementary provisions regarding Receivers.  The
following shall have effect as regards any Receiver appointed under this Clause
8:

 

(a)           the
appointment shall be by deed or, at the Lender’s option, by a document signed
by any of its officers; and an appointment in respect of some only of the
Secured Assets may later be extended to all or some of the other Secured
Assets;

 

(b)           to the
fullest extent permitted by law, a Receiver shall be the Owner’s agent, and the
Owner shall be responsible, to the exclusion of any liability on the part of
the Lender, for his remuneration and for his contracts, acts and defaults;

 

(c)           the
remuneration of a Receiver and the other terms of his appointment shall be
fixed, and may be revised, by the Lender;

 

(d)           the
Lender may exercise any of the powers conferred by the Finance Documents while
a Receiver is in office and is acting;

 

(e)           the
Owner irrevocably and by way of security appoints every Receiver its attorney
on its behalf and in its name or otherwise to execute or sign any document and
do any act or thing which that Receiver considers necessary or desirable with a
view to or in connection with any exercise or proposed exercise of any of his
powers;

 

(f)            a
Receiver may delegate any of his powers to any person or persons and may do so
on terms authorising successive sub-delegations;

 

(g)           in the
case of joint Receivers, any of their powers may be exercised by any one or
more of them, unless their appointment specifically states the contrary;

 

(h)           in the
event that a Receiver is not an administrative receiver, the Lender may remove
him, with or without appointing another Receiver; and such a removal may be
effected by a document signed by any of the Lender’s officers;

 

(i)            the
Lender may appoint a Receiver to replace a Receiver who has resigned or for any
other reason ceased to hold office;

 

(j)            a
Receiver shall be entitled to retain out of any money received by him such
amounts in respect of his expenses or the following indemnity (or to cover
estimated future expenses or amounts due under the following indemnity) as he
may from time to time agree with the Lender; and

 

(k)           the
Owner shall, on a Receiver’s demand, fully indemnify that Receiver and every
person employed by or acting for him in respect of all claims, expenses,
liabilities and losses which are made or brought against or incurred by that
Receiver or person, or which that Receiver reasonably and with due diligence
estimates that he or such a person may incur, as a result of or in connection
with any action taken or omitted to be taken in relation to the Secured Assets
or any other matter or event relating to the Secured Assets, including any
accident or incident involving or caused by the Ship; and neither a Receiver
nor such

 

8

 

a person shall have any liability to the Owner in any circumstances
save proven dishonesty on the part of that Receiver or person himself.

 

8.8          Law of Property Act 1925 not applicable.  The Owner hereby waives the entitlement
conferred by section 93 of the Law of Property Act 1925 and agrees that section
103 of that Act shall not apply to the security created by this Deed.

 

8.9          No liability of Lender or Receiver.  Neither the Lender nor any Receiver shall be
obliged to check the nature or sufficiency of any payment received by it or him
under this Deed or to preserve, exercise or enforce any right forming part of,
or relating to, any item of the Secured Assets.

 

9              APPLICATION OF MONEYS

 

9.1          Application.  All sums received by the Lender or by a Receiver:

 

(a)           in
respect of the Earnings following a direction made by the Lender under Clause
4.1;

 

(b)           under
the Insurances (except any sum received by the Lender in respect of a Major
Casualty which has been paid over to the Owner under Clause 4.2(b));

 

(c)           in
respect of Requisition Compensation;

 

(d)           in
respect of any transaction or arrangement under Clause 8.1, 8.2, 8.3, 8.5 or
8.7,

 

shall be held
by the Lender or the Receiver upon trust in the first place to pay or discharge
any expenses or liabilities (including any interest) which have been paid or
incurred by the Lender or any Receiver in or connection with the exercise of
their respective powers and to apply the balance in accordance with clause 21
of the Loan Agreement.

 

10           FURTHER ASSURANCES

 

10.1        Owner’s obligation to execute further documents etc.  The Owner shall:

 

(a)           execute
and deliver to the Lender (or as it may direct) any assignment, mortgage, power
of attorney, proxy or other document, governed by the law of England or such
other country as the Lender may, in any particular case, specify;

 

(b)           effect
any registration or notarisation, give any notice or take any other step;

 

which the
Lender may, by notice to the Owner, specify for any of the purposes described
in Clause 10.2 or for any similar or related purpose.

 

10.2        Purposes of further assurances.  The purposes referred to in Clause 10.1 are:

 

(a)           validly
and effectively to create any Security Interest or right of any kind which the
Lender intended should be created by or pursuant to this Deed or any other
Finance Document;

 

(b)           to
create a specific mortgage or assignment of any particular item of the Secured
Assets or otherwise to vest in the Lender the title to any particular item of
the Secured Assets;

 

9

 

(c)           to
protect the priority, or increase the effectiveness, in any jurisdiction of any
Security Interest which is created, or which the Lender intended should be
created, by or pursuant to the Mortgage, this Deed or any other Finance
Document;

 

(d)           to
enable or assist the Lender or a Receiver to sell or otherwise deal with any
item of the Secured Assets, to transfer title to, or grant any interest or
right relating to, any item of the Secured Assets or to exercise any power
which is referred to in Clause 8.1 above or which is conferred by any Finance
Document;

 

(e)           to
enable or assist the Lender to enter into any transaction to commence, defend
or conduct any proceedings and/or to take any other action relating to any item
of the Secured Assets in any country or under the law of any country.

 

10.3        Terms of further assurances.  The Lender may specify the terms of any
document to be executed by the Owner under Clause 10.1, and those terms may
include any covenants, powers and provisions which the Lender considers
appropriate to protect its or a Receiver’s interests.

 

10.4        Obligation to comply with notice.  The Owner shall comply with a notice under
Clause 10.1 by the date specified in the notice.

 

10.5        Additional corporate action.  At the same time as the Owner delivers to
the Lender any document executed under Clause 10.1(a), the Owner shall also
deliver to the Lender a certificate signed by 2 of the Owner’s directors which
shall:

 

(a)           set
out the text of a resolution of the Owner’s directors specifically authorising
the execution of the document specified by the Lender; and

 

(b)           state
that either the resolution was duly passed at a meeting of the directors validly
convened and held throughout which a quorum of directors entitled to vote on
the resolution was present or that the resolution has been signed by all the
directors and is valid under the Owner’s articles of association or other
constitutional documents.

 

11           POWER OF ATTORNEY

 

11.1        Appointment.  For the purpose of securing the Lender’s interest in the Secured
Assets and the due and punctual performance of its obligations to the Lender
under this Deed and every other Finance Document, the Owner irrevocably and by
way of security appoints the Lender its attorney, on behalf of the Owner and in
its name or otherwise, to execute or sign any document and do any act or thing
which the Owner is obliged to do under any Finance Document.

 

11.2        Ratification of actions of attorney.  For the avoidance of doubt and without
limiting the generality of Clause 11.1, it is confirmed that it authorises the
Lender to execute on behalf of the Owner a document ratifying by the Owner any
transaction or action which the Lender and/or a Receiver has purported to enter
into or to take and which the Lender considers was or might have been outside
his powers or otherwise invalid.

 

11.3        Delegation.  The Lender may sub-delegate to any person or persons (including a
Receiver and persons designated by him) all or any of the powers (including the
discretions) conferred on the Lender by Clauses 11.1 and/or 11.2, and may do so
on terms authorising successive sub-delegations.

 

10

 

12           INCORPORATION OF LOAN AGREEMENT PROVISIONS

 

12.1        Incorporation of specific provisions.  The following provisions of the Loan
Agreement apply to this Deed as if they were expressly incorporated therein
with any necessary modifications:

 

clause 24, no
set-off or tax deduction;

 

clause 29,
variations and waivers;

 

clause 30, notices;

 

clause 31,
supplemental.

 

12.2        Incorporation of general provisions.  Clause 12.1 is without prejudice to the
application to this Deed of any provision of the Loan Agreement which, by its
terms, applies or relates to the Finance Documents generally.

 

13           SUPPLEMENTAL

 

13.1        No restriction on other rights.  Nothing in this Deed shall be taken to
exclude or restrict any power, right or remedy which the Lender may at any time
have under:

 

(a)           any other
Finance Document; or

 

(b)           the
law of any country or territory the courts of which have or claim any
jurisdiction in respect of the Owner, the Ship or any other item of the Secured
Assets.

 

13.2        Exercise of other rights.  The Lender may exercise any right under this
Deed before it has exercised any right referred to in Clause 13.1(a) or (b)
above.

 

13.3        Settlement or discharge conditional.  Any settlement or discharge under this Deed
between the Lender and the Owner shall be conditional upon no security or
payment to the Lender by the Owner or any other person being set aside,
adjusted or ordered to be repaid, whether under any insolvency law or
otherwise.

 

13.4        Third party rights.  A person who is not a party to this Deed has
no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or
to enjoy the benefit of any term of this Deed.

 

14           LAW AND JURISDICTION

 

14.1        English law.  This Deed shall be governed by, and construed in accordance with,
English law.

 

14.2        Exclusive English jurisdiction.  Subject to Clause 14.3, the courts of
England shall have exclusive jurisdiction to settle any disputes which may
arise out of or in connection with this Deed.

 

14.3        Choice of forum for the exclusive benefit of the Lender.  Clause 14.2 is for the
exclusive benefit of the Lender, which reserves the rights:

 

11

 

(a)           to
commence proceedings in relation to any matter which arises out of or in
connection with this Deed in the courts of any country other than England and
which have or claim jurisdiction to that matter; 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 Owner
shall not commence any proceedings in any country other than England in
relation to a matter which arises out of or in connection with this Deed.

 

14.4        Process agent.  The Owner irrevocably appoints Maritime Recovery Limited at its
registered office for the time being, presently at 20 Salcott Road, PO Box 293,
London SW11 6DJ, 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 this Deed.

 

14.5        Lender’s rights unaffected.  Nothing in this Clause 14 shall exclude or
limit any right which the Lender 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.

 

14.6        Meaning of “proceedings”.  In this Clause 14, “proceedings” means
proceedings of any kind, including an application for a provisional or protective
measure.

 

THIS DEED has been
duly executed as a deed on the date stated at the beginning of this Deed.

 

12

 

EXECUTION PAGE

 

 

	
  OWNER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED

  	
  )

  	
  /s/ Nicholas Sherriff

  
	
  by KTL MAYFAIR, INC.

  	
  )

  	
   

  
	
  acting by Nicholas Sherriff

  	
  )

  	
   

  
	
  expressly authorised in accordance with the

  	
  )

  	
   

  
	
  laws of  Liberia

  	
  )

  	
   

  
	
  by virtue of a power of attorney granted

  	
  )

  	
   

  
	
  by KTL MAYFAIR, INC.

  	
  )

  	
   

  
	
  on 2 March 2004

  	
  )

  	
   

  
	
  such execution being witnessed by:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
   

  	
   

  	
   

  
	
  /s/ illegible

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVEREDas a DEED

  	
  )

  	
  /s/ Robert J. Manners

  
	
  by the duly authorised attorney of

  	
  )

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND plc

  	
  )

  	
   

  
	
  for it and on its behalf

  	
  )

  	
   

  
	
  in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
   

  	
   

  	
   

  
	
  /s/ Charmaine Rumbelow

  	
   

  	
   

  	
   

  
					

 

13Exhibit 4.37

 

 

Date
2 March 2004

 

 

KNIGHTSBRIDGE TANKERS LIMITED

as
Borrower

 

 

- and -

 

KTL HAMPSTEAD, INC.

KTL CHELSEA, INC.

KTL MAYFAIR, INC.

KTL CAMDEN, INC.

KTL KENSINGTON, INC.

as New
Owners

 

- and -

 

 

THE ROYAL BANK OF SCOTLAND plc

as Bank

 

 

ACCOUNT SECURITY DEED

 

 

relating to a
Loan Agreement dated 2 March 2004

 

 

WATSON Farley &
WILLIAMS

London

 

 

INDEX

 

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  FIRST FIXED CHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  RESTRICTIONS
  ON REPAYMENT AND TRANSFER OF CREDIT BALANCES

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  LENDER’S RIGHTS OF SET OFF

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  CURRENCY CONVERSION

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  FURTHER DOCUMENTATION ETC

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  SUPPLEMENTAL

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  INCORPORATION
  OF LOAN AGREEMENT PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  LAW AND JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTION PAGE

  	
   

  

 

 

THIS     DEED is made on 2 March 2004

 

BETWEEN

 

(1)           KNIGHTSBRIDGE TANKERS LIMITED, a company incorporated in Bermuda whose registered office is at
Par-la-Ville, 14 Par-la-Ville Road, Hamilton HM08, Bermuda (the “Borrower”);
and

 

(2)           KTL HAMPSTEAD, INC., KTL
CHELSEA, INC., KTL MAYFAIR, INC., KTL CAMDEN, INC. and KTL KENSINGTON, INC., each a company incorporated in the Republic of Liberia whose
registered office is at Broad Street, Monrovia, Liberia (each a “New Owner”
and together the “New Owners”);

 

(3)           THE ROYAL BANK OF SCOTLAND
plc, acting through its office at Shipping Business
Centre, 5-10 Great Tower Street, London EC3P 3HX (the “Lender”).

 

BACKGROUND

 

(A)          By a loan agreement (the “Loan Agreement”) dated
2 March 2004 and made between (i) the Borrower, (ii) the New Owners and
(iii) the Lender it was agreed that the Lender would make available to the
Borrower a facility of up to US$140,000,000 by way of up to five (5) separate
advances.

 

(B)           Under the Loan Agreement the Borrower has opened,
and is to maintain, with the Lender:

 

(i)            an
account designated “Knightsbridge Tankers Retention Account” with account
number KNTAREAC USD1 (the “Retention Account”); and

 

(ii)           an
account designed “Knightsbridge Tankers Operating Account” with account number
KNTAOPAC USD1 (the “Operating Account”).

 

(C)           It is one of the conditions precedent to the
availability of the facility under the Loan Agreement that the Borrower and the
New Owners executes this Deed.

 

(D)          The Lender enters into this Deed in the following
capacities:

 

(i)            as
the bank with which the Accounts will be maintained; and

 

(ii)           as the
Lender under the Loan Agreement.

 

IT IS AGREED as follows:

 

1              DEFINITIONS

 

1.1          Defined Expressions.  Words and expressions defined in the Loan
Agreement shall have the same meanings when used in this Deed unless the
context otherwise requires.

 

1.2          Definitions.  In this Deed unless a contrary intention appears:

 

“Accounts”
means the Operating Account and the Retention Account;

 

“Account Bank”
means the Lender in its capacity as the bank with which the Accounts are
maintained;

 

 

“Credit
Balance” means, in relation to the Operating Account or the
Retention Account:

 

(a)           the amount for the time
being standing to the credit of that Account; and

 

(b)           any amount received by or
for the account of the Account Bank which, under any of the Finance Documents,
the Account Bank is required to credit to that Account but which the Account
Bank has not yet credited to the Account; and

 

(c)           any interest accrued or
accruing on an amount covered by paragraph (a) or (b) above, whether or not the
interest has been credited to that Account; and

 

“Secured
Liabilities” has the meaning given in Clause 1.1 of the Loan
Agreement.

 

1.3          Application of construction and interpretation provisions of Loan
Agreement. 
Clauses 1.2 and 1.5 of the Loan Agreement apply, with any necessary
modifications, to this Deed.

 

1.4          Construction of certain terms.  In this Deed:

 

(a)           references
to the Accounts include any other account, whether in Dollars or any other
currency, which may be opened in the place of the accounts referred to in
Recital B above, irrespective of the number or designation of such replacement
account, and any sub-account of that account or such replacement account, and
references to the Accounts shall be construed accordingly;

 

(b)           references
to “outstanding
Secured Liabilities” or “outstanding amounts” include amounts which
are payable at a later date, but exclude amounts the liability to pay which
remains contingent;

 

(c)           an
amount shall be deemed to be outstanding and to be due and payable to the
Lender if it is then entitled to demand payment of that amount, notwithstanding
that no demand has yet been served; and

 

(d)           references
to, or to a provision of, a Finance Document (including the Loan Agreement) are
references to it as amended or supplemented, whether before the date of this
Deed or otherwise, and references to the Secured Liabilities shall be construed
accordingly.

 

2              FIRST FIXED CHARGE

 

2.1          Charges.  The Borrower and the New Owners:

 

(a)           to the
full extent of their interest and with full title guarantee, charge the Credit
Balance on the Operating Account to the Lender as security for the due payment
of the Secured Liabilities;

 

(b)           to the
full extent of their interest and with full title guarantee, charge the Credit
Balance on the Retention Account to the Lender as security for the due payment
of the Secured Liabilities;

 

(c)           declare
that each such charge shall be a first fixed charge; and

 

(d)           declare
that each such charge shall be entirely distinct and independent from the
other.

 

2

 

2.2          Right to apply Credit Balances. Upon or
at any time after the occurrence of an Event of Default (but without the
necessity for any court order in any jurisdiction to the effect that an Event
of Default has occurred or is continuing or that the security constituted by
this Deed has become enforceable) or, if and to the extent that the Loan Agreement
so permits, before an Event of Default, the Lender shall be entitled to
appropriate all or any part of the Credit Balances on both Accounts or either
of them in or towards the discharge of the then outstanding Secured Liabilities
and the Lender may take any action described in this Clause 2.2 notwithstanding
that any maturity or roll-over date attached to any part or parts of the Credit
Balance may not yet have arrived.

 

2.3          Right to determine order of application of Credit Balances.  If, on any occasion on
which the Lender exercises any of its rights under this Clause 2, the aggregate
amount of the Credit Balances is less than the aggregate amount of the then
outstanding Secured Liabilities (after making, where appropriate, any
conversion under Clause 5), the Lender may exercise those rights in respect of
such of the Secured Liabilities, and in such proportions, as the Lender on that
occasion decides.

 

2.4          Notification of application of Credit Balances.  The Lender shall notify
the Borrower and the New Owners as soon as reasonably practicable after
carrying out a transaction under this Clause 2.

 

2.5          Certification of application of Credit Balances.  A certificate signed by a
director or other senior officer of the Lender and which states that on the date
and (if the certificate also states this) at a specified time the Lender
exercised its rights under this Clause 2 to appropriate a specified amount of
Credit Balance on a specified Account in the discharge of a specified amount of
the then outstanding Secured Liabilities shall be conclusive evidence that the
liabilities of the Account Bank in respect of the specified amount of the
Credit Balance on the specified Account and the specified amount of Secured
Liabilities were extinguished and discharged on the date and, if so stated, at
the specified time.

 

3              RESTRICTIONS ON REPAYMENT AND TRANSFER OF CREDIT
BALANCES

 

3.1          Restriction on payment of Credit Balances. The Borrower covenants not to withdraw or transfer any of the
Credit Balances except to the extent that the Loan Agreement so permits but
subject nevertheless to Clause 3.2.

 

3.2          Assignment of Credit Balances not permitted.  During the Security Period,
the Borrower or any New Owner shall not attempt to assign any right (future or
contingent) relating to the Credit Balance on either Account without the
Lender’s prior written consent.

 

3.3          Meaning of “assignment”.  In this Clause 3 references to assignment
include the creation, or permitting to arise, of any form of beneficial or
security interest and every other kind of disposition.

 

4              LENDER’S RIGHTS OF SET OFF

 

4.1          Meaning of “Amount Eligible for Set-Off”.  In this Clause “Amount Eligible for Set-Off”
means any amount which is at the relevant time outstanding (as defined in
Clause 1.4) from the Borrower and any New Owner under any Finance Document to
the Lender.

 

3

 

4.2          Right to exercise set-off.  The Lender may exercise the rights set out
in the following provisions of this Clause 4:

 

(a)           upon
or at any time after the occurrence of an Event of Default (but without the
necessity for any court order in any jurisdiction to the effect that an Event
of Default has occurred or is continuing or that the security constituted by
this Deed has become enforceable) or, if and to the extent that the Loan
Agreement so permits, before an Event of Default; and

 

(b)           notwithstanding
that any maturity or roll-over date attached to any part or parts of the Credit
Balances may not yet have arrived.

 

4.3          Exercise of set-off.  The Lender may, by notice to the Borrower
and the New Owners, set off all or any part of the Credit Balances on both
Accounts or either of them against all or any part of the Amounts Eligible for
Set-Off.

 

4.4          Effect of exercise of set-off.  A set-off under Clause 4.3 shall:

 

(a)           extinguish
and discharge (and not merely provide a defence to an action for):

 

(i)            the
liabilities of the Account Bank in respect of the Credit Balances; and

 

(ii)           the
Secured Liabilities,

 

which
are the subject of the set-off; and

 

(b)           be
deemed to be completed upon the service of a notice by the Lender to the
Borrower and the New Owners which states that the set-off has been effected and
which gives brief particulars of the Credit Balances and the Secured
Liabilities involved.

 

4.5          Right to determine order of application of Credit Balances.  If, on any occasion on
which the Lender exercises its rights under this Clause 4, the aggregate amount
of the Credit Balances is less than the aggregate of the Amounts Eligible for
Set-Off (after making, where appropriate, any conversion under Clause 5), the
Lender may exercise those rights in respect of such of the Amounts Eligible for
Set-Off, and in such proportions, as the Lender on that occasion decides.

 

4.6          Certification of application of Credit Balances.  A certificate signed by a
director or other senior officer of the Lender and which states that a notice
of set-off of which a copy is attached to the certificate was served (or under
Clause 7 is deemed to have been served) by the Lender on the Borrower and the
New Owners on a specified date, and (if the certificate also states this) at or
before a specified time, shall be conclusive evidence that the liabilities of
the Account Bank in respect of the Credit Balances, and the Secured Liabilities,
which were referred to in the notice were extinguished and discharged on the
specified date and (if the certificate so states) at or before the specified
time.

 

4.7          Independent rights.  The Lender’s rights under this Clause 4 are
in addition to, and entirely separate from, and exercisable independently of,
its rights under Clause 2.

 

5              CURRENCY CONVERSION

 

5.1          Right to convert Credit Balances.  For the purposes of this Deed:

 

4

 

(a)           the
Account Bank may convert into a different currency or currencies all or any
part or parts of the Credit Balance on both or either of the Accounts;

 

(b)           the
Account Bank may credit to different sub-accounts comprised in each or either
Account parts of the Credit Balance on that Account which are denominated in
different currencies; and

 

(c)           the
Lender may convert into a different currency or currencies all or any part or
parts of the Secured Liabilities (including Amounts Eligible for Set-Off).

 

5.2          Rate of conversion.  Such a conversion shall be at the rate which
the Account Bank or (as the case may be) the Lender determines to be the rate
at or about the time of conversion at which it is or has been offering to
purchase the currency in which the amount was previously denominated with the
currency into which it is to be the converted.

 

5.3          Meaning of “conversion”.  In this Deed “conversion” includes a
translation without an actual currency transaction; but references in this Deed
to a transaction under this clause include such a translation.

 

5.4          Construction of certain terms.  References in this Deed to the Credit
Balances, the Secured Liabilities and the Amounts Eligible for Set-Off include
references to the amount produced by any conversion of them under this Clause
5.

 

5.5          Notification of conversion.  The Account Bank or, as the case may be, the
Lender shall notify the Borrower and the New Owners as soon as reasonably
practicable after carrying out a transaction under this Clause.

 

6              FURTHER DOCUMENTATION ETC

 

6.1          Obligation to execute further documents etc.  The Borrower and the New
Owners shall execute forthwith any document which the Lender may specify for
the purpose of:

 

(a)           supplementing
the rights which this Deed confers on the Lender in relation to the Credit
Balances;

 

(b)           registering
or otherwise perfecting this Deed; or

 

(c)           ensuring
or confirming the validity of anything done or to be done under this Deed.

 

6.2          Terms of further assurances.  Any document to be executed pursuant to
Clause 6.1 shall be in the terms specified by the Lender and, in the case of a
mortgage of the Credit Balances, those terms may include a provision entitling
the Lender, on or after an Event of Default, to deal with the Credit Balances
in any way it considers appropriate for the purpose of discharging the Secured
Liabilities.

 

6.3          Further obligations of Borrower and the New Owners.  The Borrower and the New
Owners shall also forthwith do any act and execute any document (including a
document which amends or replaces this Deed) which the Lender specifies for the
purpose of enabling or assisting the Account Bank or the Lender to comply, in
relation to the Credit Balances, the Accounts and/or the Secured Liabilities,
with any requirement (legally binding or not) applicable to the Account Bank or
the Lender and, in particular, any requirements of a banking supervisory
authority with regard to netting or cash collateral.

 

5

 

6.4          Power of attorney in relation to further assurances.  For the purpose of
securing performance of the Borrower and the New Owner’s obligations under
Clauses 6.1 to 6.3, the Borrower and the New Owners irrevocably appoint the
Lender as their attorney, on their behalf and in their name or otherwise, to
sign or execute any document which, in the opinion of the Lender the Borrower
and the New Owners are obliged, or could be required, to sign or execute under
any of those Clauses.

 

6.5          Power of attorney in relation to Accounts.  In addition, for the
purpose of securing the Lender’s interest in the Credit Balances, the Borrower
and the New Owners irrevocably appoint the Lender as their attorney, on their
behalf and in their name or otherwise to require or authorise the Account Bank:

 

(a)           to
open any sub-account within each or either Account;

 

(b)           to
open any other accounts in the name of the Borrower and the New Owners with the
Account Bank; or

 

(c)           to
make any entries on, or transfers to or from, the Accounts and/or any account
opened under paragraph (b) above;

 

which
the Lender considers necessary or convenient for or in connection with any
exercise or intended exercise of any rights which the Lender or the Account
Bank has under this Deed or any other purpose connected with this Deed.

 

6.6          Acts of attorney.  Without limiting its generality, Clause 6.5
entitles the Lender to require or authorise the Account Bank to break the
deposit of the Credit Balances in whole or in part, and to transfer any part or
parts of the Credit Balances to sub-accounts within both or either of the
Accounts denominated in a different currency or currencies and/or  having
a different roll-over date or dates from the rest of the Credit Balances.

 

6.7          Delegation.  The Lender may appoint any person or persons its substitute under
the foregoing powers of attorney and may also delegate the exercise of those
powers of attorney to any person or persons.

 

6.8          Meaning of “mortgage”.  In this Clause 6 “mortgage” includes a charge
and any other kind of security.

 

7              SUPPLEMENTAL

 

7.1          Continuing security.  This Deed, including each of the charges
created by Clause 2, shall remain in force until the end of the Security Period
as a continuing security and, in particular:

 

(a)           the
Security Interests created by Clause 2 shall not be satisfied by any
intermediate payment or satisfaction of the Secured Liabilities;

 

(b)           the
Security Interests created by Clause 2, and the rights of the Lender under this
Deed, are only capable of being extinguished, limited or otherwise adversely
affected by an express and specific term in a document signed by or on behalf
of the Lender;

 

(c)           no
failure or delay by or on behalf of the Lender to enforce or exercise a
Security Interest created by Clause 2 or a right of the Lender under this Deed,
and no act, course of conduct, acquiescence or failure to act (or to prevent
the Borrower and any New Owner

 

6

 

from
taking certain action) which is inconsistent with such a Security Interest or
such a right or with such a Security Interest being a fixed security shall
preclude or stop the Lender (either permanently or temporarily) from enforcing
or exercising it or result in a Security Interest expressed to be a fixed
security taking effect as a floating security; and

 

(d)           this
Deed shall be additional to, and shall not in any way impair or be impaired by:

 

(i)            any
other Security Interest whether in relation to property of the Borrower or any
New Owner or that of a third party; or

 

(ii)           any
other right of recourse as against the Borrower or any third party,

 

which the Lender now or subsequently has in
respect of any of the Secured Liabilities.

 

7.2          No restriction on other rights.  Nothing in this Deed excludes or restricts
any form of banker’s lien or right of set off or any other right or remedy
which the Lender or the Account Bank would have had, apart from this Deed,
under the general law, the Account Bank’s terms and conditions relating to
accounts or otherwise.

 

7.3          Third party rights.  A person who is not a party to this Deed has
no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or
to enjoy the benefit of any term of this Deed.

 

8              INCORPORATION OF LOAN AGREEMENT PROVISIONS

 

8.1          Incorporation of specific provisions.  The following provisions of the Loan
Agreement apply to this Deed as if they were expressly incorporated therein
with any necessary modifications:

 

clause
24, no set-off or tax deduction;

 

clause
29, variations and waivers;

 

clause
30, notices;

 

clause
31, supplemental.

 

8.2          Incorporation of general provisions.  Clause 8.1 is without prejudice to the
application to this Deed of any provision of the Loan Agreement which, by its
terms, applies or relates to the Finance Documents generally.

 

9              LAW AND JURISDICTION

 

9.1          English law.  This Deed shall be governed by, and construed in accordance with,
English law.

 

9.2          Exclusive English jurisdiction.  Subject to Clause 9.3, the courts of England
shall have exclusive jurisdiction to settle any disputes which may arise out of
or in connection with this Deed.

 

9.3          Choice of forum for the exclusive benefit of the Lender.  Clause 9.2 is for the
exclusive benefit of the Lender, which reserves the rights:

 

7

 

(a)           to
commence proceedings in relation to any matter which arises out of or in
connection with this Deed in the courts of any country other than England and
which have or claim jurisdiction to that matter; 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 and each New Owner shall not commence any proceedings in any country
other than England in relation to a matter which arises out of or in connection
with this Deed.

 

9.4          Process agent.  The Borrower and each New Owner irrevocably appoints Maritime
Recovery Limited at its registered office for the time being, presently at 20
Salcott Road, P O Box 239, London SW11 6DJ, 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 this Deed.

 

9.5          Lender’s rights unaffected.  Nothing in this Clause 9 shall exclude or
limit any right which the Lender 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.

 

9.6          Meaning of “proceedings”.  In this Clause 9, “proceedings” means
proceedings of any kind, including an application for a provisional or
protective measure.

 

THIS DEED has been duly executed as a deed on the date stated at the beginning
of this Deed.

 

8

 

EXECUTION PAGE

 

	
  BORROWER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED

  	
  )

  	
  /s/ Nicholas Sherriff

  
	
  by KNIGHTSBRIDGE TANKERS LIMITED

  	
  )

  	
   

  
	
  acting by Nicholas
  Sherriff

  	
  )

  	
   

  
	
  expressly authorised in accordance with

  	
  )

  	
   

  
	
  the laws of Bermuda by virtue of a power of

  	
  )

  	
   

  
	
  attorney granted by KNIGHTSBRIDGE

  	
  )

  	
   

  
	
  TANKERS LIMITED on 2 March 2004

  	
  )

  	
   

  
	
  such execution being

  	
  )

  	
   

  
	
  witnessed by:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
  /s/ Kavita Shah

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NEW OWNERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED

  	
  )

  	
  /s/ Nicholas Sherriff

  
	
  by KTL HAMPSTEAD, INC.

  	
  )

  	
   

  
	
  acting by Nicholas
  Sherriff

  	
  )

  	
   

  
	
  expressly authorised in accordance with

  	
  )

  	
   

  
	
  the laws of Liberia by virtue of a power of

  	
  )

  	
   

  
	
  attorney granted by KTL HAMPSTEAD, INC.

  	
  )

  	
   

  
	
  on 2 March 2004

  	
  )

  	
   

  
	
  such execution being witnessed by :

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
  /s/ Kavita Shah

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED

  	
  )

  	
  /s/ Nicholas Sherriff

  
	
  by KTL CHELSEA, INC.

  	
  )

  	
   

  
	
  acting by Nicholas
  Sherriff

  	
  )

  	
   

  
	
  expressly authorised in accordance with

  	
  )

  	
   

  
	
  the laws of Liberia by virtue of a power of

  	
  )

  	
   

  
	
  attorney granted by KTL CHELSEA, INC.

  	
  )

  	
   

  
	
  on 2 March 2004

  	
  )

  	
   

  
	
  such execution being witnessed by :

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
  /s/ Kavita Shah

  	
   

  	
   

  
					

 

 

9

 

	
  EXECUTED AS A DEED

  	
  )

  	
   

  
	
  by KTL MAYFAIR, INC.

  	
  )

  	
   

  
	
  acting by Nicholas
  Sherriff

  	
  )

  	
  /s/ Nicholas Sherriff

  
	
  expressly authorised in accordance with

  	
  )

  	
   

  
	
  the laws of Liberia by virtue of a power of

  	
  )

  	
   

  
	
  attorney granted by KTL MAYFAIR, INC.

  	
  )

  	
   

  
	
  on 2 March 2004

  	
  )

  	
   

  
	
  such execution being witnessed by:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
  /s/ Kavita Shah

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED

  	
  )

  	
   

  
	
  by KTL CAMDEN, INC.

  	
  )

  	
   

  
	
  acting by Nicholas
  Sherriff

  	
  )

  	
  /s/ Nicholas Sherriff

  
	
  expressly authorised in accordance with

  	
  )

  	
   

  
	
  the laws of Liberia by virtue of a power of

  	
  )

  	
   

  
	
  attorney granted by KTL CAMDEN, INC.

  	
  )

  	
   

  
	
  on) 2 March 2004

  	
  )

  	
   

  
	
  such execution being witnessed by:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
  /s/ Kavita Shah

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED

  	
  )

  	
   

  
	
  by KTL KENSINGTON, INC.

  	
  )

  	
   

  
	
  acting by Nicholas
  Sherriff

  	
  )

  	
  /s/ Nicholas Sherriff

  
	
  expressly authorised in accordance with

  	
  )

  	
   

  
	
  the laws of Liberia by virtue of a power of

  	
  )

  	
   

  
	
  attorney granted by KTL KENSINGTON, INC.

  	
  )

  	
   

  
	
  on) 2 March 2004

  	
  )

  	
   

  
	
  such execution being witnessed by:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature of witness

  	
  /s/ Kavita Shah

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LENDER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a Deed

  	
  )

  	
  /s/ Robert J. Manners

  
	
  by the duly authorised attorney of

  	
  )

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND plc

  	
  )

  	
   

  
	
  in the presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Martin Bennett

  	
   

  	
   

  

 

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}]]