Document:

Exhibit 4.15

 

EXECUTION COPY

 

 

PURCHASE, SALE AND CONTRIBUTION AGREEMENT

 

DATED OCTOBER 5, 2011

 

BETWEEN

 

GOLAR LNG LIMITED,

 

GOLAR LNG PARTNERS LP

 

AND

 

GOLAR PARTNERS OPERATING LLC

 

 

 

 

TABLE OF CONTENTS

 

	
Article I Definitions
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
Section 1.01
    	
 
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
Article II Purchase and Sale of SHARES; Closing  
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
Section 2.01
    	
 
    	
Purchase and Sale of Shares
    	
4
    
	
Section 2.02
    	
 
    	
Closing
    	
4
    
	
Section 2.03
    	
 
    	
Place of Closing
    	
4
    
	
Section 2.04
    	
 
    	
Purchase Price for the Shares.
    	
5
    
	
Section 2.06
    	
 
    	
Contribution of the Shares
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
Article III Representations and Warranties   of the Buyer 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
Section 3.01
    	
 
    	
Organization; Good Standing and Authority
    	
5
    
	
Section 3.02
    	
 
    	
Authorization, Execution and Delivery of this   Agreement
    	
5
    
	
Section 3.03
    	
 
    	
No Conflicts
    	
6
    
	
Section 3.04
    	
 
    	
No Consents
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
Article IV Representations and Warranties of   the Seller 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
Section 4.01
    	
 
    	
Organization; Good Standing and Authority
    	
6
    
	
Section 4.02
    	
 
    	
Authority and Authorization; Execution and Delivery   of this Agreement
    	
6
    
	
Section 4.03
    	
 
    	
No Conflicts
    	
6
    
	
Section 4.04
    	
 
    	
No Consents
    	
7
    
	
Section 4.05
    	
 
    	
Good and Marketable Title to Shares; No Encumbrances
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
Article V Representations and Warranties of   the Seller Regarding the SubsidiarIES 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
Section 5.01
    	
 
    	
Organization; Good Standing and Authority
    	
7
    
	
Section 5.02
    	
 
    	
Capitalization; No Options
    	
7
    
	
Section 5.03
    	
 
    	
Organizational Documents
    	
8
    
	
Section 5.04
    	
 
    	
Charter Documents; Validity of the Charter
    	
8
    
	
Section 5.05
    	
 
    	
No Conflicts
    	
8
    
	
Section 5.06
    	
 
    	
Good and Marketable Title to Vessel; Encumbrances
    	
8
    
	
Section 5.07
    	
 
    	
Litigation
    	
8
    
	
Section 5.08
    	
 
    	
Indebtedness to and from Officers, etc
    	
9
    
	
Section 5.09
    	
 
    	
Personnel
    	
9
    
	
Section 5.10
    	
 
    	
Contracts and Agreements
    	
9
    
	
Section 5.11
    	
 
    	
Compliance with Law
    	
9
    
	
Section 5.12
    	
 
    	
No Undisclosed Liabilities
    	
10
    
	
Section 5.13
    	
 
    	
Disclosure of Information
    	
10
    
	
Section 5.14
    	
 
    	
Insurance
    	
10
    
	
Section 5.15
    	
 
    	
U.S. Tax Classification
    	
10
    

 

i

 

	
Article VI Representations and Warranties of the   Seller regarding the Vessel
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
Section 6.01
    	
 
    	
Flag
    	
10
    
	
Section 6.02
    	
 
    	
Classification
    	
10
    
	
Section 6.03
    	
 
    	
Maintenance
    	
10
    
	
Section 6.04
    	
 
    	
Liens
    	
11
    
	
Section 6.05
    	
 
    	
Safety
    	
11
    
	
Section 6.06
    	
 
    	
No Blacklisting or Boycotts
    	
11
    
	
Section 6.07
    	
 
    	
No Options
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
Article VII Pre-Closing Matters
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
Section 7.01
    	
 
    	
Covenants of the Seller Prior to the Closing
    	
11
    
	
Section 7.02
    	
 
    	
Covenant of the Buyer Prior to the Closing
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
Article VIII Conditions Of Closing
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
Section 8.01
    	
 
    	
Conditions of the Parties
    	
12
    
	
Section 8.02
    	
 
    	
Conditions of the Seller
    	
13
    
	
Section 8.03
    	
 
    	
Conditions of the Buyer
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
Article IX Termination, Amendment and Waiver
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
Section 9.01
    	
 
    	
Termination of Agreement
    	
14
    
	
Section 9.02
    	
 
    	
Amendments and Waivers
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
Article X Indemnification
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
Section 10.01
    	
 
    	
Indemnity by the Seller
    	
14
    
	
Section 10.02
    	
 
    	
Indemnity by the Buyer
    	
15
    
	
 
    	
 
    
	
Article XI Miscellaneous
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
Section 11.01
    	
 
    	
Further Assurances
    	
15
    
	
Section 11.02
    	
 
    	
Powers of Attorney
    	
15
    
	
Section 11.03
    	
 
    	
Headings; References; Interpretation
    	
16
    
	
Section 11.04
    	
 
    	
Successors and Assigns
    	
17
    
	
Section 11.05
    	
 
    	
No Third Party Rights
    	
17
    
	
Section 11.06
    	
 
    	
Counterparts
    	
17
    
	
Section 11.07
    	
 
    	
Governing Law; Submission to Jurisdiction
    	
17
    
	
Section 11.08
    	
 
    	
Severability
    	
17
    
	
Section 11.09
    	
 
    	
Integration
    	
17
    
	
Section 11.10
    	
 
    	
No Broker’s Fees
    	
18
    
	
Section 11.11
    	
 
    	
Notices
    	
18
    

 

ii

 

SCHEDULE

 

	
Schedule A
    	
 
    	
Insurance
    	
A-1
    

 

EXHIBIT

 

	
Exhibit I
    	
 
    	
Form of Loan Agreement
    	
I-1
    
	
 
    	
 
    	
 
    	
 
    
	
Exhibit II
    	
 
    	
Form of Amendment No. 1 to Omnibus Agreement
    	
II-1
    

 

iii

 

PURCHASE, SALE AND CONTRIBUTION AGREEMENT (the “Agreement”), dated as of October 5, 2011, by and between GOLAR LNG LIMITED, a Bermuda exempted company (the “Seller”), GOLAR LNG PARTNERS LP, a Marshall Islands limited partnership (the “Buyer”), and GOLAR PARTNERS OPERATING LLC, a Marshall Islands limited liability company (the “OLLC”), each a “Party” and collectively, the “Parties.”

 

RECITAL

 

WHEREAS, the Buyer wishes to purchase from the Seller, and the Seller wishes to sell to the Buyer, all outstanding common shares (the “Shares”), of Golar LNG Holding Co., a Marshall Islands corporation (“LNG Holding”);

 

WHEREAS, LNG Holding owns (i) all of the outstanding shares of capital stock (the “Freeze Holding Shares”) of Golar Freeze Holding Co., a Marshall Islands corporation (“Freeze Holding”), and (ii) the entire issued share capital of Golar Freeze (UK) Ltd. (“Freeze Ltd.”), a private company limited by shares incorporated in England with 1,000 ordinary shares of ₤1.00 in issue (the “Freeze Ltd. Shares”);

 

WHEREAS, the Buyer wishes to contribute the Shares to the OLLC as a capital contribution;

 

WHEREAS, Freeze Holding is the owner of the Golar Freeze, a liquified natural gas carrier/floating storage and regasification unit (the “Vessel”); and

 

WHEREAS, the Vessel is subject to a Time Charter Party dated April 20, 2008 (the “Charter”) between Freeze Ltd. and the Dubai Supply Authority (DUSUP) (the “Charterer”).

 

NOW, THEREFORE, the Parties hereto agree as follows:

 

Article I

 

Definitions

 

Section 1.01                             Definitions.  In this Agreement, unless the context requires otherwise or unless otherwise specifically provided herein, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:

 

“1934 Act Filings” means the filings the Seller has made with the Securities and Exchange Commission under the Securities Exchange Act of 1934.

 

“Agreement” means this Agreement, including its recitals and schedules, as amended and supplemented.

 

“Applicable Law” in respect of any Person, property, transaction or event, means all laws, statutes, ordinances, regulations, municipal by-laws, treaties, judgments and decrees applicable to that Person, property, transaction or event and, whether or not having the force of law, all applicable official directives, rules, consents, approvals, authorizations, guidelines,

 

 

orders, codes of practice and policies of any Governmental Authority having or purporting to have authority over that Person, property, transaction or event and all general principles of common law and equity.

 

“Business Day” means any day other than a Saturday, Sunday or any statutory holiday on which banks in London or New York are required to close.

 

“Buyer” has the meaning given to it in the Preamble to this Agreement.

 

“Buyer Attorney-in-Fact” has the meaning given to it in Section 11.02(b).

 

“Buyer Indemnitees” has the meaning given to it in Section 10.01.

 

“Charter” has the meaning given to it in the recitals.

 

“Charterer” has the meaning given to it in the recitals.

 

“Closing” has the meaning given to it in Section 2.01.

 

“Closing Date” means the day on which the Closing takes place.

 

“Contracts” has the meaning given to it in Section 5.10.

 

“Credit Facility” means the US$125,000,000 credit facility agreement in respect of the Vessel dated June 17, 2010 as supplemented and amended by a side letter dated September 16, 2010, a first supplemental deed dated December 22, 2010 and a second supplemental deed dated March 28, 2011 and made between (1) Freeze Holding as borrower, (2) Eksportfinans ASA as export finance lender, (3) certain banks and financial institutions set out in schedule 1 thereto as commercial lenders, (4) DnB NOR Bank ASA, Citigroup Global Markets Limited and DVB Bank SE as mandated lead arrangers, (5) DnB NOR Bank ASA as swap bank, (6) DnB NOR Bank ASA as book runner, (7) DnB NOR Bank ASA as facility agent and (8) DnB NOR Bank ASA as security agent.

 

“Encumbrance” means any mortgage, maritime or other lien, charge, assignment, adverse claim, hypothecation, restriction, option, covenant, voting trust arrangement, adverse claim, condition, encumbrance or right, whether fixed or floating, on, or any security interest in, any property whether real, personal or mixed, tangible or intangible, any pledge or hypothecation of any property, any deposit arrangement, priority, conditional sale agreement, other title retention agreement or equipment trust, capital lease or other security arrangements of any kind.

 

“Freeze Holding” has the meaning given to it in the recitals.

 

“Freeze Holding Organizational Documents” has the meaning given to it in Section 5.02.

 

“Freeze Holding Shares” has the meaning given to it in the recitals.

 

“Freeze Ltd.” has the meaning given to it in the recitals.

 

“Freeze Ltd. Organizational Documents” has the meaning given to it in Section 5.02.

 

 

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“Freeze Ltd. Shares” has the meaning given to it in the recitals.

 

“Golar LNG Partners Credit Facility” means the US$285,000,000 credit facility dated September 29, 2008 between (1) the Partnership, as borrower, (2) Nordea Bank Norge ASA,  DnB NOR Bank ASA, Citigroup Global Markets Limited, Fortis Banks SA/NV UK Branch and Lloyds TSB Bank PLC, as lead arrangers, (3) Nordea Bank Finland PLC, DnB NOR Bank ASA, Citibank N.A., Fortis Bank SA/NV UK Branch and Lloyds TSB Bank PLC, as swap banks, (4) Nordea Bank Norge ASA, as facility agent and security agent, and (5) Citigroup Global Markets Limited as book runner.

 

“Governmental Authority” means any domestic or foreign government, including federal, provincial, state, municipal, county or regional government or governmental or regulatory authority, domestic or foreign, and includes any department, commission, bureau, board, administrative agency or regulatory body of any of the foregoing and any multinational or supranational organization.

 

“Insolvency Event” means, with respect to any Person, that any of the following actions has occurred in relation to it:

 

(a)         an order has been made or an effective resolution passed or other proceedings or actions taken (including, without limitation, the presentation of a petition) with a view to its administration, bankruptcy, winding-up, liquidation or dissolution; or

 

(b)         it has had a receiver, administrative receiver, manager or administrator appointed over all or any substantial part of its undertaking or assets; or

 

(c)          any event has occurred or situation arisen in any jurisdiction that has a substantially similar effect to any of the foregoing.

 

“LNG Holding” has the meaning given to it in the recitals.

 

“LNG Holding Organizational Documents” has the meaning given to it in Section 5.02.

 

“Loan Agreement” has the meaning given to it in Section 2.04.

 

“Losses” means, with respect to any matter, all losses, claims, damages, liabilities, deficiencies, costs, expenses (including all costs of investigation, legal and other professional fees and disbursements, interest, penalties and amounts paid in settlement) or diminution of value, whether or not involving a claim from a third party, however specifically excluding consequential, special and indirect losses, loss of profit and loss of opportunity.

 

“Manager” means Golar Wilhelmsen Management AS.

 

“OLLC” has the meaning given to it in the Preamble to this Agreement.

 

“OLLC Attorney-in-Fact” has the meaning given to it in Section 8.02(c).

 

“Omnibus Agreement” means the Omnibus Agreement, dated as of April 13, 2011, by and among the Seller, the Buyer, the OLLC, Golar GP LLC and Golar LNG Energy Limited.

 

3

 

“Omnibus Agreement Indemnification” has the meaning given to it in Section 10.01(b).

 

“Organizational Documents” has the meaning given to it in Section 5.02.

 

“Party” or “Parties” has the meaning given to it in the Preamble to this Agreement.

 

“Person” means an individual, legal personal representative, corporation, body corporate, firm, partnership, trust, trustee, syndicate, joint venture, unincorporated organization or Governmental Authority.

 

“Purchase Price” has the meaning given to it in Section 2.04.

 

“Seller” has the meaning given to it in the Preamble to this Agreement.

 

“Seller Attorney-in-Fact” has the meaning given to it in Section 11.02(a).

 

“Seller Indemnities” has the meaning given to it in Section 10.02.

 

“Shares” has the meaning given to it in the recitals.

 

“Subsidiaries” means LNG Holding, Freeze Holding and Freeze Ltd.

 

“Taxes” means all income, franchise, business, property, sales, use, goods and services or value added, withholding, excise, alternate minimum capital, transfer, excise, customs, anti-dumping, stumpage, countervail, net worth, stamp, registration, franchise, payroll, employment, health, education, business, school, property, local improvement, development, education development and occupation taxes, surtaxes, duties, levies, imposts, rates, fees, assessments, dues and charges and other taxes required to be reported upon or paid to any Governmental Authority and all interest and penalties thereon.

 

“Time of Closing” has the meaning given to it in Section 2.01.

 

“Vessel” has the meaning given to it in the recitals.

 

Article II

 

Purchase and Sale of SHARES; Closing

 

Section 2.01                             Purchase and Sale of Shares.  The Seller agrees to sell and transfer to the Buyer, and the Buyer agrees to purchase from the Seller for the Purchase Price and in accordance with and subject to the terms and conditions set forth in this Agreement, the Shares.

 

Section 2.02                             Closing.  On the terms and subject to the conditions of this Agreement, the sale and transfer of the Shares and payment of the Purchase Price shall take place on October 19, 2011 or on such other date as may be agreed upon by the Seller and the Buyer (the “Time of Closing”).  The sale and transfer of the Shares is hereinafter referred to as the “Closing.”

 

Section 2.03                             Place of Closing.  The Closing shall occur at a place agreed upon by the Seller and the Buyer.

 

4

 

Section 2.04                             Purchase Price for the Shares.

 

(a)                                 At the Time of Closing, the Buyer, as the borrower, shall enter into a loan agreement with the Seller, as the lender (the “Loan Agreement”), pursuant to which the Buyer shall borrow from the Seller on the Closing Date, an aggregate amount equal to $222,309,582.29, representing the fair market value of the Shares, as determined pursuant to the Omnibus Agreement, reduced by the amount of debt outstanding on the date hereof under the Credit Facility (the “Purchase Price”).  The Loan Agreement shall be in substantially the form attached to this Agreement as Exhibit I.

 

(b)                                 Within 30 days following the Closing Date, (i) the Buyer and the Seller shall agree upon certain post-Closing adjustments to the Purchase Price to reflect each Party’s pro rata portion of amounts in respect of charter hire, vessel operating expenses and interest expense for the period from October 1, 2011 through October 31, 2011, and (ii) the Buyer shall pay to the Seller an amount in cash equal to all of the cash in the accounts of the Subsidiaries in excess of $500,000 in the aggregate (collectively, the “Purchase Price Adjustments”).

 

(c)                                  Within 45 days following the Closing Date, the Seller or the Buyer, as applicable, shall pay to the other Party an amount, in cash, equal to the aggregate of all Purchase Price Adjustments pursuant to Section 2.04(b).

 

Section 2.06                             Contribution of the Shares.  Immediately after the Closing, the Buyer shall grant, contribute, convey, assign, transfer and deliver all of its right, title and interest in and to the Shares to the OLLC, and the OLLC shall accept the Shares as a contribution to its capital.

 

Article III

 

Representations and Warranties of the Buyer

 

The Buyer represents and warrants to the Seller that as of the date hereof and on the Closing Date:

 

Section 3.01                             Organization; Good Standing and Authority.  The Buyer has been duly formed and is validly existing in good standing under the laws of the Republic of the Marshall Islands and has all requisite limited partnership power and authority to operate its assets and conduct its business as it is now being conducted.  No Insolvency Event has occurred with respect to the Buyer and no events or circumstances have arisen that entitle or could entitle any person to take any action, appoint any person, commence proceedings or obtain any order instigating an Insolvency Event.

 

Section 3.02                             Authorization, Execution and Delivery of this Agreement.  The Buyer has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery of this Agreement and all documents, instruments and agreements required to be executed and delivered by the Buyer pursuant to this Agreement in connection with the completion of the transactions contemplated by this Agreement, have been duly authorized by all necessary action on its part, and this Agreement has been duly executed and delivered by the Buyer and constitutes a legal, valid and binding obligation of the Buyer enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction and other similar laws of general

 

5

 

application affecting the enforceability of remedies and rights of creditors and except that equitable remedies such as specific performance and injunction are in the discretion of a court.

 

Section 3.03                             No Conflicts.  The execution, delivery and performance by the Buyer of this Agreement will not conflict with or result in any violation of or constitute a breach of any of the terms or provisions of, or result in the acceleration of any obligation under, or constitute a default under any provision of: (i) its certificate of formation or limited partnership agreement; (ii) any Encumbrance, bond, indenture, agreement, contract, franchise license, permit or other instrument or obligation to which it is a party or is subject or by which any of its assets or properties may be bound; or (iii) any Applicable Laws.

 

Section 3.04                             No Consents.  Except as have already been obtained or that will be obtained prior to the Time of Closing, no consent, permit, approval or authorization of, notice or declaration to or filing with any Governmental Authority or any other Person, including those related to any environmental laws or regulations, is required in connection with the execution and delivery by it of this Agreement or the consummation by the Buyer of the transactions contemplated hereunder.

 

Article IV

 

Representations and Warranties of the Seller

 

The Seller represents and warrants to the Buyer and the OLLC that as of the date hereof and on the Closing Date:

 

Section 4.01                             Organization; Good Standing and Authority.  The Seller has been duly incorporated and is validly existing and in good standing under the laws of Bermuda and has all requisite corporate capacity to operate its assets and conduct its business as described in the 1934 Act Filings.  No Insolvency Event has occurred with respect to the Seller and no events or circumstances have arisen that entitle or could entitle any person to take any action, appoint any person, commence proceedings or obtain any order instigating an Insolvency Event.

 

Section 4.02                             Authority and Authorization; Execution and Delivery of this Agreement.  The Seller has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder, including the sale, transfer and delivery of the Shares to the Buyer at the Time of Closing.  The execution and delivery of this Agreement and all documents, instruments and agreements required to be executed and delivered by the Seller pursuant to this Agreement in connection with the completion of the transactions contemplated by this Agreement, have been duly authorized by all necessary action on its part, and this Agreement has been duly executed and delivered by the Seller and constitutes a legal, valid and binding obligation of the Seller enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction and other similar laws of general application affecting the enforceability of remedies and rights of creditors and except that equitable remedies such as specific performance and injunction are in the discretion of a court.

 

Section 4.03                             No Conflicts.  The execution, delivery and performance by the Seller of this Agreement will not conflict with or result in any violation of or constitute a breach of any of the terms or provisions of, or result in the acceleration of any obligation under, or constitute a

 

6

 

default under any provision of: (i) its articles of association, articles of incorporation or by-laws or other organizational documents; (ii) any Encumbrance, bond, indenture, agreement, contract, franchise license, permit or other instrument or obligation to which it is a party or is subject or by which any of its assets or properties may be bound; or (iii) any Applicable Laws.

 

Section 4.04                             No Consents.  Except as have already been obtained or that will be obtained prior to the Time of Closing, no consent, permit, approval or authorization of, notice or declaration to or filing with any Governmental Authority or any other Person, including those related to any environmental laws or regulations, is required in connection with the execution and delivery by it of this Agreement or the consummation by the Seller of the transactions contemplated hereunder, and any consents required for the transfer or assignment of the Charter have been duly obtained.

 

Section 4.05                             Good and Marketable  Title to Shares;  No Encumbrances.  The Seller is the registered owner of all of the Shares and now has, and at the Closing Date will have and, upon conveyance, the Buyer will receive, good and marketable title to the Shares, free and clear of any and all Encumbrances.

 

Article V

 

Representations and Warranties of
 the Seller Regarding the SubsidiarIES

 

The Seller represents and warrants to the Buyer and the OLLC that as of the date hereof and on the Closing Date:

 

Section 5.01                             Organization; Good Standing and Authority.  Each of LNG Holding and Freeze Holding has been duly incorporated and is validly existing in good standing under the laws of the Republic of the Marshall Islands and has all requisite corporate power and authority to own and operate its assets and conduct its business.  Freeze Ltd. has been duly formed and is validly existing under the laws of England and Wales and has all requisite corporate power and authority to own its assets and conduct its business.  No Insolvency Event has occurred with respect to any Subsidiary and no events or circumstances have arisen that entitle or could entitle any person to take any action, appoint any person, commence proceedings or obtain any order instigating an Insolvency Event.  Each Subsidiary is qualified to do business, is in good standing and has all required and appropriate licenses and authorizations in each jurisdiction in which its failure to obtain or maintain such qualification, good standing, licensing or authorization would have a material adverse effect on the condition (financial or otherwise), assets, properties, business or prospects of such Subsidiary.

 

Section 5.02                             Capitalization;  No Options.  The Shares have been duly authorized and validly issued in accordance with the articles of incorporation and by-laws or other organizational documents of LNG Holding (the “LNG Holding Organizational Documents”) and are fully paid and non-assessable and constitute the total authorized, issued and outstanding capital stock of LNG Holding.  The Freeze Holding Shares have been duly authorized and validly issued in accordance with the articles of incorporation and by-laws or other organizational documents of Freeze Holding (the “Freeze Holding Organizational Documents”) and are fully paid and non-assessable and constitute the total authorized, issued and outstanding

 

7

 

capital stock of Freeze Holding.  The Freeze Ltd. Shares have been duly authorized and validly issued in accordance with the articles of association or other organizational documents of Freeze Ltd. (the “Freeze Ltd. Organizational Documents” and, together with the Freeze Holding Organizational Documents and the LNG Holding Organizational Documents, the “Organizational Documents”) and are fully paid and constitute the total authorized, issued and outstanding share capital of Freeze Ltd. LNG Holding is the registered owner of all the Freeze Holding Shares and the Freeze Ltd. Shares and owns such shares free and clear of any and all Encumbrances, other than those arising under the Credit Facility.  There are not outstanding (i) any options, warrants or other rights to purchase any capital stock or share capital of any of the Subsidiaries, (ii) any securities convertible into or exchangeable for shares of such capital stock or share capital or (iii) any other commitments of any kind for the issuance of additional shares of capital stock or share capital or options, warrants or other securities of any of the Subsidiaries.

 

Section 5.03                             Organizational Documents.  The Seller has supplied to the Buyer true and correct copies of the Organizational Documents, as amended to the Closing Date, and no amendments will be made to the Organizational Documents prior to the Closing Date without the prior written consent of the Buyer (such consent not to be unreasonably withheld).

 

Section 5.04                             Charter Documents;  Validity of the Charter.  The Seller has supplied to the Buyer true and correct copies of the Charter and any related documents, as amended to the Closing Date.  The Charter is a valid and binding agreement of Freeze Ltd. enforceable against Freeze Ltd. in accordance with its terms and, to the knowledge of the Seller, the Charter is a valid and binding agreement of all other parties thereto enforceable against such parties in accordance with its terms.

 

Section 5.05                             No Conflicts.  The execution, delivery and performance of this Agreement will not conflict with or result in any violation of or constitute a breach of any of the terms or provisions of, or result in the acceleration of any obligation under, or constitute a default under any provision of: (i) the Organizational Documents; (ii) any Encumbrance, bond, indenture, agreement, contract, franchise license, permit or other instrument or obligation to which the any of the Subsidiaries is a party or is subject or by which any of their assets or properties may be bound; (iii) any Applicable Laws; or (iv) give any other party thereto a right to terminate any agreement or other instrument to which any of the Subsidiaries is a party or by which any of them is bound including, without limitation, the Charter.

 

Section 5.06                             Good and Marketable  Title to Vessel; Encumbrances.  Freeze Holding is the registered owner of the Vessel and now has, and at the Time of Closing will have, good and marketable title to the Vessel, free and clear of any and all Encumbrances, other than those arising under the Credit Facility.  As of the date hereof, there is $107,690,417.71 of borrowings outstanding under the Credit Facility.

 

Section 5.07                             Litigation.

 

(a)                                 There is no action, suit or proceeding to which any of the Subsidiaries is a party (either as a plaintiff or defendant) pending before any court or governmental agency, authority or body or arbitrator; there is no action, suit or proceeding threatened against any of the Subsidiaries; and, to the best knowledge of the Seller, there is no basis for any such action, suit or proceeding;

 

8

 

(b)                                 None of the Subsidiaries has been permanently or temporarily enjoined by any order, judgment or decree of any court or any governmental agency, authority or body from engaging in or continuing any conduct or practice in connection with the business, assets, or properties of such Subsidiary; and

 

(c)                                  There is not in existence any order, judgment or decree of any court or other tribunal or other agency enjoining or requiring any of the Subsidiaries to take any action of any kind with respect to its business, assets or properties.

 

Section 5.08                             Indebtedness to and from Officers, etc.  None of the Subsidiaries will be indebted, directly or indirectly, to any person who is an officer, director, stockholder or employee of any of the Seller or any spouse, child, or other relative or any affiliate of any such person, nor shall any such officer, director, stockholder, employee, relative or affiliate be indebted to any of the Subsidiaries.

 

Section 5.09                             Personnel.  None of the Subsidiaries has any employees other than the crew serving on board the Vessel, to the extent such crew members are not directly employed by the Manager.

 

Section 5.10                             Contracts and Agreements.  All material contracts and agreements, written or oral, to which any of the Subsidiaries is a party or by which any of their assets are bound, including the Charter (the “Contracts”), have been disclosed to the Buyer.  No other contracts will be entered into by any of the Subsidiaries prior to the Closing Date without the prior consent of the Buyer (such consent not to be unreasonably withheld).

 

(a)                                 Each of the Contracts is a valid and binding agreement of the applicable Subsidiary enforceable against such Subsidiary in accordance with its terms, and to the knowledge of the Seller, each of the Contracts is a valid and binding agreement of all other parties thereto enforceable against such parties in accordance with their terms;

 

(b)                                 Each of the Subsidiaries has fulfilled all material obligations required pursuant to its Contracts to have been performed by it prior to the date hereof and has not waived any material rights thereunder; and

 

(c)                                  There has not occurred any material default on the part of any Subsidiary under any of the Contracts, or to the knowledge of the Seller, on the part of any other party thereto, nor has any event occurred that with the giving of notice or the lapse of time, or both, would constitute any material default on the part of any Subsidiary under any of the Contracts nor, to the knowledge of the Seller, has any event occurred that with the giving of notice or the lapse of time, or both, would constitute any material default on the part of any other party to any of the Contracts.

 

Section 5.11                             Compliance with Law.  The conduct of business by any of the Subsidiaries or the Vessel on the date hereof does not violate any Applicable Laws (including, but not limited to, any of the foregoing relating to employment discrimination, environmental protection or conservation, and the provisions of all international conventions and the rules and regulations issued thereunder applicable to the Vessel), the enforcement of which would materially and adversely affect the business, assets, condition (financial or otherwise) or prospects of the

 

9

 

Subsidiaries taken as a whole, nor have the any of the Subsidiaries received any notice of any such violation.

 

Section 5.12                             No Undisclosed Liabilities.  Neither the Subsidiaries nor the Vessel has any Encumbrances, or other liabilities or obligations of any nature, whether absolute, accrued, contingent or otherwise, and whether due or to become due (including, without limitation, any liability for Taxes and interest, penalties and other charges payable with respect to any such liability or obligation), except for such liabilities or obligations arising under the Credit Facility other than the Encumbrances or other liabilities or obligations appearing in the ship registry of the Vessel and those arising under the Credit Facility.

 

Section 5.13                             Disclosure of Information.  The Seller has disclosed to the Buyer all material information on, and about, the Subsidiaries and the Vessel and all such information is true, accurate and not misleading in any material respect.  Nothing has been withheld from any materials provided by the Seller to the Buyer in connection with the transactions contemplated by this Agreement that would render such information untrue or misleading.

 

Section 5.14                             Insurance.  The insurance policies relating to the Vessel are set forth on Schedule A hereto, each of which is in full force and effect and, to the Seller’s knowledge, not subject to being voided or terminated for any reason.

 

Section 5.15                             U.S. Tax Classification.  Each Subsidiary is or prior to Closing will be classified for United States federal income tax purposes as an entity disregarded as separate from Seller pursuant to Treas. Reg. Sections 301.7701-2 and 301.7701-3. Neither the Seller nor any of the Subsidiaries will take any action to change the U.S. federal income tax classification of any of the Subsidiaries.

 

Article VI

 

Representations and Warranties of
 the Seller regarding the Vessel

 

The Seller represents and warrants to the Buyer and the OLLC that on the date hereof and on the Closing Date:

 

Section 6.01                             Flag.  The Vessel is properly registered in the name of Freeze Holding under and pursuant to the flag and law of The Republic of the Marshall Islands and all fees due and payable in connection with such registration have been paid.

 

Section 6.02                             Classification.  The Vessel is entered with Det Norske Veritas and has the highest classification rating.  The Vessel has a CAP-2 hull rating.  The Vessel is in class without any recommendations or notation as to class or other requirement of the relevant classification society, and if the Vessel is in a port, it is in such condition that it can not be detached by any port state authority or the flag state authority for any deficiency.

 

Section 6.03                             Maintenance.  The Vessel has been maintained in a proper and efficient manner in accordance with internationally accepted standards for good ship maintenance, is in good operating order, condition and repair and is seaworthy and all repairs made to the Vessel

 

10

 

during the last two years and all known scheduled repairs due to be made and all known deficiencies have been disclosed to the Buyer.

 

Section 6.04           Liens.  The Vessel is not (i) under arrest or otherwise detained, (ii) other than in the ordinary course of business, in the possession of any Person (other than her master and crew) or (iii) subject to a possessory lien.

 

Section 6.05           Safety.  The Vessel is supplied with valid and up-to-date safety, safety construction, safety equipment, radio, loadline, health, tonnage, trading and other certificates or documents as may for the time being be prescribed by the law of The Republic of the Marshall Islands or of any other pertinent jurisdiction, or that would otherwise be deemed necessary by a shipowner acting in accordance with internationally accepted standards for good ship management and operations.

 

Section 6.06           No Blacklisting or Boycotts.  No blacklisting or boycotting of any type has been applied or currently exists against or in respect of the Vessel.

 

Section 6.07           No Options.  There are not outstanding any options or other rights to purchase the Vessel, other than the option held by the Buyer.

 

ARTICLE VII

 

PRE-CLOSING MATTERS

 

Section 7.01           Covenants of the Seller Prior to the Closing.  From the date of this Agreement to the Closing Date, Seller shall cause the Subsidiaries to conduct their businesses in the usual, regular and ordinary course in substantially the same manner as previously conducted.  The Seller shall not, and shall not permit the Subsidiaries to take any action that would result in any of the conditions to the purchase and sale of the Shares set forth in Article VIII not being satisfied.  In addition, the Seller hereby agrees and covenants that it:

 

(a)           shall cooperate with the Buyer and use its reasonable best efforts to obtain, at or prior to the Closing Date, any consents required in respect of the transfer of the rights and benefits under the Contracts;

 

(b)           shall use its reasonable best efforts to take or cause to be taken promptly all actions and to do or cause to be done all things necessary, proper and advisable to consummate and make effective as promptly as practicable the transaction contemplated by this Agreement and to cooperate with the Buyer in connection with the foregoing, including using all reasonable best efforts to obtain all necessary consents, approvals and authorizations from each Governmental Authority and each other Person that are required to consummate the transaction contemplated under this Agreement;

 

(c)           shall take or cause to be taken all necessary corporate action, steps and proceedings to approve or authorize validly and effectively the purchase and sale of the Shares and the execution and delivery of this Agreement and the other agreements and documents contemplated hereby;

 

11

 

(d)           shall not amend, alter or otherwise modify or permit any amendment, alteration or modification of any material provision of or terminate the Charter or any other Contract prior to the Closing Date without the prior written consent of the Buyer, such consent not to be unreasonably withheld or delayed;

 

(e)           shall not exercise or permit any exercise of any rights or options contained in the Charter, without the prior written consent of the Buyer, not to be unreasonably withheld or delayed;

 

(f)            shall observe and perform in a timely manner, all of its covenants and obligations under its Charter, if any, and (i) in the case of a default by another party thereto, it shall forthwith advise the Buyer of such default and shall, if requested by the Buyer, enforce all of its rights under such Charter in respect of such default; and (ii) subject to the rights of the lenders under the Credit Facility, in the case of a breach or anticipated breach of any Charter by the Seller or any Subsidiary, it shall permit the Buyer to cure on its behalf such breach or anticipated breach and shall promptly reimburse the Buyer for any and all costs that the Buyer may expend in order to effect such cure;

 

(g)           shall not cause or, to the extent reasonably within its control, permit any Encumbrances to attach to the Vessel other than in connection with the Credit Facility; and

 

(h)           shall permit representatives of the Buyer to make, prior to the Closing Date, at the Buyer’s risk and expense, such searches, surveys, tests and inspections of the Vessel as the Buyer may deem desirable; provided, however, that such surveys, tests or inspections shall not damage the Vessel or interfere with the activities of the Seller or the Charterer thereon and that the Buyer shall furnish the Seller with evidence that the Buyer has adequate liability insurance in full force and effect.

 

Section 7.02           Covenant of the Buyer Prior to the Closing.  The Buyer hereby agrees and covenants that during the period of time after the date of the Agreement and prior to the Closing Date, the Buyer shall, in respect of the Shares to be transferred on the Closing Date, take, or cause to be taken, all necessary corporate action, steps and proceedings to approve or authorize validly and effectively the purchase and sale of the Shares and the execution and delivery of this Agreement and the other agreements and documents contemplated hereby.

 

ARTICLE VIII

 

CONDITIONS OF CLOSING

 

Section 8.01           Conditions of the Parties.  The obligation of the Seller to sell the Shares and the obligation of the Buyer to purchase the Shares is subject to the satisfaction (or waiver by each of the Seller and the Buyer) on or prior to the Closing Date of the following conditions:

 

(a)           The Seller shall have received any and all written consents, permits, approvals or authorizations of any Governmental Authority or any other Person (including, but not limited to, with respect to the Golar LNG Partners Credit Facility) and shall have made any and all notices or declarations to or filing with any Governmental Authority or any other Person, including those

 

12

 

related to any environmental laws or regulations, required in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereunder, including the transfer of the Shares;

 

(b)           No legal or regulatory action or proceeding shall be pending or threatened by any Governmental Authority to enjoin, restrict or prohibit the purchase and sale of the Shares; and

 

(c)           The Buyer, the Seller, the MLP, Golar GP LLC and Golar LNG Energy Limited, shall have entered into Amendment No. 1 to the Omnibus Agreement in the form attached as Exhibit II hereto.

 

Section 8.02           Conditions of the Seller.  The obligation of the Seller to sell the Shares is subject to the satisfaction (or waiver by the Seller) on or prior to the Closing Date of the following conditions:

 

(a)           The representations and warranties of the Buyer made in this Agreement shall be true and correct in all material respects as of the Closing Date as though made on the Closing Date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects, on and as of such earlier date);

 

(b)           The Buyer shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by the Buyer by the Closing Date; and

 

(c)           All proceedings to be taken in connection with the transaction contemplated by this Agreement and all documents incidental thereto shall be reasonably satisfactory in form and substance to the Seller and its counsel, and the Seller shall have received copies of all such documents and other evidence as it may reasonably request in order to establish the consummation of such transaction and the taking of all proceedings in connection therewith.

 

Section 8.03           Conditions of the Buyer.  The obligation of the Buyer to purchase and pay for the Shares is subject to the satisfaction (or waiver by the Buyer) on or prior to the Closing Date of the following conditions:

 

(a)           The representations and warranties of the Seller in this Agreement shall be true and correct in all material respects as of the Closing Date as though made on the Closing Date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects, on and as of such earlier date);

 

(b)           The Seller shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by the Seller by the Closing Date;

 

(c)           The results of the searches, surveys, tests and inspections of the Vessel referred to in Section 7.01(h) of this Agreement are reasonably satisfactory to the Buyer;

 

13

 

(d)           The Buyer shall have obtained the funds necessary to consummate the purchase and sale of the Shares, and to pay all related fees and expenses; and

 

(e)           All proceedings to be taken in connection with the transaction contemplated by this Agreement and all documents incidental thereto shall be reasonably satisfactory in form and substance to the Buyer and its counsel, and the Buyer shall have received copies of all such documents and other evidence as it or its counsel may reasonably request in order to establish the consummation of such transaction and the taking of all proceedings in connection therewith.

 

ARTICLE IX

 

TERMINATION, AMENDMENT AND WAIVER

 

Section 9.01           Termination of Agreement.  Notwithstanding anything to the contrary in this Agreement, this Agreement may be terminated and the purchase and sale of the Shares contemplated by this Agreement abandoned at any time prior to the Closing:

 

(a)           by mutual written consent of the Seller and the Buyer;

 

(b)           by the Seller if any of the conditions set forth in Section 8.01 and Section 8.02 shall have become incapable of fulfillment, and shall not have been waived by the Seller; or

 

(c)           by the Buyer if any of the conditions set forth in Section 8.01 and Section 8.03 shall have become incapable of fulfillment, and shall not have been waived by the Buyer;

 

provided, however, that the Party seeking termination pursuant to clause (b) or (c) is not then in material breach of any of its representations, warranties, covenants or agreements contained in this Agreement.

 

Section 9.02           Amendments and Waivers.  This Agreement may not be amended except by an instrument in writing signed on behalf of each Party hereto.  By an instrument in writing the Buyer, on the one hand, or the Seller, on the other hand, may waive compliance by the other with any term or provision of this Agreement that such other Party was or is obligated to comply with or perform.

 

ARTICLE X

 

INDEMNIFICATION

 

Section 10.01         Indemnity by the Seller.

 

(a)           Following the Closing, the Seller shall be liable for, and shall indemnify, defend and hold harmless the Buyer, the OLLC and each of their respective officers, directors, employees, agents and representatives (the “Buyer Indemnitees”) from and against, any Losses, suffered or incurred by such Buyer Indemnitee:

 

(i)            by reason of, arising out of or otherwise in respect of any inaccuracy in, breach of any representation or warranty, or a failure to perform or observe fully any covenant, agreement or obligation of, the Seller in or under this Agreement or in or under

 

14

 

any document, instrument or agreement delivered pursuant to this Agreement by the Seller; or

 

(ii)           any fees, expenses or other payments incurred or owed by the Seller to any brokers, financial advisors or comparable other persons retained or employed by it in connection with the transaction contemplated by this Agreement.

 

(b)           Following the Closing, the Seller shall be liable for, and shall indemnify, defend and hold harmless the Buyer Indemnitees from and against the matters set forth in Article VIII of the Omnibus Agreement, as amended by Amendment No. 1 thereto, (the “Omnibus Agreement Indemnification”), for the remaining term of the Omnibus Agreement Indemnification with respect to events or conditions associated with the operation of the Vessel and occurring prior to the Time of Closing.

 

Section 10.02         Indemnity by the Buyer.  Following the Closing, the Buyer shall indemnify the Seller and its affiliates and each of their respective officers, directors, employees, agents and representatives (the “Seller Indemnitees”) against and hold them harmless from, any Losses, suffered or incurred by such Seller Indemnitee by reason of, arising out of or otherwise in respect of any inaccuracy in, breach of any representation or warranty, or a failure to perform or observe fully any covenant, agreement or obligation of, the Buyer in or under this Agreement or in or under any document, instrument or agreement delivered pursuant to this Agreement by the Buyer.

 

ARTICLE XI

 

MISCELLANEOUS

 

Section 11.01         Further Assurances.  From time to time after the date of this Agreement, and without any further consideration, the Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and will do all such other acts and things, all in accordance with Applicable Law, as may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are intended to be so granted, (b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended so to be and (c) to more fully and effectively carry out the purposes and intent of this Agreement.

 

Section 11.02         Powers of Attorney.

 

(a)           The Seller hereby constitutes and appoints Colleen E. Simmons (the “Seller Attorney-in-Fact”) as its true and lawful attorney-in-fact with full power of substitution for it and in its name, place and stead or otherwise on behalf of the Seller and its successors and assigns, and for the benefit of the Seller Attorney-in-Fact to demand and receive from time to time the Shares conveyed by this Agreement (or intended so to be) and to execute in the name of the Seller and its successors and assigns instruments of conveyance, instruments of further assurance and to give receipts and releases in respect of the same, and from time to time to institute and prosecute in the name of the Seller for the benefit of the Seller Attorney-in-Fact, any and all

 

15

 

proceedings at law, in equity or otherwise which the Seller Attorney-in-Fact may deem proper in order to (a) collect, assert or enforce any claims, rights or titles of any kind in and to the Shares, (b) defend and compromise any and all actions, suits or proceedings in respect of the Shares, and (c) do any and all such acts and things in furtherance of this Agreement as the Seller Attorney-in-Fact shall deem advisable.  The Seller hereby declares that the appointment hereby made and the powers hereby granted are coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of the Seller or its successors or assigns or by operation of law.

 

(b)           The Buyer hereby constitutes and appoints Georgina Sousa (the “Buyer Attorney-in-Fact”) as its true and lawful attorney-in-fact with full power of substitution for it and in its name, place and stead or otherwise on behalf of the Buyer and its successors and assigns, and for the benefit of the Buyer Attorney-in-Fact to demand and receive from time to time the Shares conveyed by this Agreement (or intended so to be) and to execute in the name of the Buyer and its successors and assigns instruments of conveyance, instruments of further assurance and to give receipts and releases in respect of the same, and from time to time to institute and prosecute in the name of the Buyer for the benefit of the Buyer Attorney-in-Fact, any and all proceedings at law, in equity or otherwise which the Buyer Attorney-in-Fact may deem proper in order to (a) collect, assert or enforce any claims, rights or titles of any kind in and to the Shares, (b) defend and compromise any and all actions, suits or proceedings in respect of any of the Shares, and (c) do any and all such acts and things in furtherance of this Agreement as the Buyer Attorney-in-Fact shall deem advisable.  The Buyer hereby declares that the appointment hereby made and the powers hereby granted are coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of the Buyer or its successors or assigns or by operation of law.

 

(c)           The OLLC hereby constitutes and appoints Georgina Sousa (the “OLLC Attorney-in-Fact”) as its true and lawful attorney-in-fact with full power of substitution for it and in its name, place and stead or otherwise on behalf of the OLLC and its successors and assigns, and for the benefit of the OLLC Attorney-in-Fact to demand and receive from time to time the Shares conveyed by this Agreement (or intended so to be) and to execute in the name of the OLLC and its successors and assigns instruments of conveyance, instruments of further assurance and to give receipts and releases in respect of the same, and from time to time to institute and prosecute in the name of the OLLC for the benefit of the OLLC Attorney-in-Fact, any and all proceedings at law, in equity or otherwise which the OLLC Attorney-in-Fact may deem proper in order to (a) collect, assert or enforce any claims, rights or titles of any kind in and to the Shares, (b) defend and compromise any and all actions, suits or proceedings in respect of any of the Shares, and (c) do any and all such acts and things in furtherance of this Agreement as the OLLC Attorney-in-Fact shall deem advisable.  The OLLC hereby declares that the appointment hereby made and the powers hereby granted are coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated by any act of the OLLC or its successors or assigns or by operation of law.

 

Section 11.03         Headings; References; Interpretation.  All Article and Section headings in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any of the provisions hereof.  The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  All references

 

16

 

herein to Articles and Sections shall, unless the context requires a different construction, be deemed to be references to the Articles and Sections of this Agreement, respectively.  All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall include the plural and vice versa.  The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation,” “but not limited to,” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter.

 

Section 11.04         Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

 

Section 11.05         No Third Party Rights.  The provisions of this Agreement are intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies and no person is or is intended to be a third party beneficiary of any of the provisions of this Agreement.

 

Section 11.06         Counterparts.  This Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding on the Parties hereto.

 

Section 11.07         Governing Law; Submission to Jurisdiction.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, United States of America, applicable to contracts made and to be performed wholly within such jurisdiction without giving effect to conflict of law principles thereof other than Section 5-1401 of the New York General Obligations Law, except to the extent that it is mandatory that the law of some other jurisdiction, wherein the Shares are located, shall apply.

 

Section 11.08         Severability.  If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any governmental body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement.  Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid, and an equitable adjustment shall be made and necessary provision added so as to give effect, as nearly as possible, to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement.

 

Section 11.09         Integration.  This Agreement, the Schedules hereto and the instruments referenced herein supersede all previous understandings or agreements among the Parties, whether oral or written, with respect to its subject matter hereof.  This Agreement, the Schedules hereto and the instruments referenced herein contain the entire understanding of the Parties with respect to the subject matter hereof and thereof.  No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it is contained in a written amendment hereto executed by the Parties hereto after the date of this Agreement.

 

17

 

Section 11.10         No Broker’s Fees.  No one is entitled to receive any finder’s fee, brokerage, or other commission in connection with the purchase of the Shares or the consummation of the transactions contemplated by this Agreement.

 

Section 11.11         Notices.  All notices, requests or consents provided for or permitted to be given pursuant to this Agreement must be in writing and must be given by depositing the same in the mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by private-courier, prepaid, or by telecopier to such party.  Notice given by personal delivery or mail shall be effective upon actual receipt.  Couriered notices shall be deemed delivered on the date the courier represents that delivery will occur.  Notice given by telecopier shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours.  All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set forth below such Party’s signature to this Agreement, or at such other address as such Party may stipulate to the other Party in the manner provided in this Section 11.11.

 

[SIGNATURE PAGE FOLLOWS.]

 

18

 

IN WITNESS HEREOF, each of the Parties hereto has caused this Agreement to be signed as of the date first above written.

 

 

	
 
    	
GOLAR LNG LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Georgina E. Sousa
    
	
 
    	
 
    	
Name: Georgina E. Sousa
    
	
 
    	
 
    	
Title: Secretary
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
c/o Golar Management Limited
    
	
 
    	
13th Floor
    
	
 
    	
One America Square
    
	
 
    	
17 Crosswall
    
	
 
    	
London EC3N 2LB
    
	
 
    	
England
    
	
 
    	
Phone
    	
 
    
	
 
    	
Fax:
    	
 
    
	
 
    	
Attention:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GOLAR LNG PARTNERS LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Georgina E. Sousa
    
	
 
    	
 
    	
Name: Georgina E. Sousa
    
	
 
    	
 
    	
Title: Secretary
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
c/o Golar Management Limited
    
	
 
    	
13th Floor
    
	
 
    	
One America Square
    
	
 
    	
17 Crosswall
    
	
 
    	
London EC3N 2LB
    
	
 
    	
England
    
	
 
    	
Phone
    	
 
    
	
 
    	
Fax:
    	
 
    
	
 
    	
Attention:
    	
 
    
				

 

19

 

	
 
    	
GOLAR PARTNERS OPERATING LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Georgina E. Sousa
    
	
 
    	
 
    	
Name: Georgina E. Sousa
    
	
 
    	
 
    	
Title: Secretary
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
c/o Golar Management Limited
    
	
 
    	
13th Floor
    
	
 
    	
One America Square
    
	
 
    	
17 Crosswall
    
	
 
    	
London EC3N 2LB
    
	
 
    	
England
    
	
 
    	
Phone
    	
 
    
	
 
    	
Fax:
    	
 
    
	
 
    	
Attention:
    	
 
    
				

 

20

 

SCHEDULE A

 

INSURANCE

 

Insurance Policies (all quoted values are USD)

 

Hull & Machinery

	
Hull
    	
Insured Value: $200,000,000
    	
Policy Renewal: 11/07/2012
    
	
Hull Interest
    	
Insured Value: $50,000,000
    	
Policy Renewal: 11/07/2012
    
	
Freight Interest
    	
Insured Value: $50,000,000
    	
Policy Renewal: 11/07/2012
    

 

Loss of Hire (30-day deductible, 180 day max single claim, 180 max sum of all claims pa)

	
Insured Value: $23,400,000
    	
Daily Amount: $130,000
    	
Policy Renewal: 11/07/2012
    

 

P&I/FDD Insurance

	
Gross Tonnage: 95,879
    	
Policy Renewal: 20/02/2012
    

 

War Risk

	
Insured Value: $300,000,000
    	
Policy Renewal: 01/01/2012
    

 

Underwriters

	
 
    	
Hull & Machinery
    
	
 
    	
Share
    	
Company
    
	
 
    	
22.5%
    	
Gard AS
    
	
 
    	
2.5%
    	
New York Marine and General Insurance Co
    
	
 
    	
2.5%
    	
HDI Gerling
    
	
 
    	
7.5%
    	
Mitsui Sumitomo Insurance Co
    
	
 
    	
6.0%
    	
Navigators Specialty Insurance Co
    
	
 
    	
5.0%
    	
Codan Forsikring
    
	
 
    	
10.0%
    	
Allianz Global Corporate
    
	
 
    	
41.5%
    	
Lloyds Underwriters, London
    
	
 
    	
2.5%
    	
Swedish Club
    
	
 
    	
Hull Interest/Freight Interest
    
	
 
    	
25.0%
    	
Gard AS
    
	
 
    	
2.5%
    	
New York Marine and General Insurance Co
    
	
 
    	
12.5%
    	
Codan Forsikring
    
	
 
    	
10.0%
    	
Allianz Global Corporate
    
	
 
    	
50.0%
    	
Lloyds Underwriters, London
    
	
 
    	
Loss of Hire
    
	
 
    	
60.0%
    	
Gard AS
    
	
 
    	
10.0%
    	
Codan Forsikring
    
	
 
    	
10.0%
    	
New York Marine and General Insurance Co
    
	
 
    	
5.0%
    	
Allianz Global Corporate
    
	
 
    	
15.0%
    	
Swedish Club
    
	
 
    	
War Risk
    
	
 
    	
100%
    	
The Norwegian War Risks Club
    
	
 
    	
P&I/FDD
    
	
 
    	
100%
    	
Skuld
    

 

A-1

 

EXHIBIT I

 

 

FORM OF LOAN AGREEMENT

 

I-1

 

EXHIBIT II

 

 

FORM OF AMENDMENT NO. 1 TO OMNIBUS AGREEMENT

 

THIS AMENDMENT NO. 1, dated as of October     , 2011 (this “Amendment”) to the Omnibus Agreement, dated as of April 13, 2011 (the “Omnibus Agreement”), is adopted, executed and agreed to by and effective as of October     , 2011, among Golar LNG Limited, a limited company organized under the laws of Bermuda (“Golar LNG”), Golar LNG Energy Limited, a limited company organized under the laws of Bermuda (“Golar Energy”),  Golar LNG Partners LP, a Marshall Islands limited partnership (the “MLP”), Golar GP LLC, a Marshall Islands limited liability company (the “General Partner”), and Golar Partners Operating LLC, a Marshall Islands limited liability company (the “Operating Company” and, together with Golar LNG, Golar Energy, the MLP and the General Partner, the “Parties”).

 

R E C I T A L S:

 

WHEREAS, except as otherwise provided herein, capitalized terms used herein have the meanings assigned to them in the Omnibus Agreement; and

 

WHEREAS, Golar LNG, the MLP and the Operating Company have entered into a Purchase, Sale and Contribution Agreement, dated as of October     , 2011 (the “Purchase and Sale Agreement”), providing for the purchase by the MLP of all the outstanding common shares (the “Shares”) of Golar LNG Holding Co., a Marshall Islands corporation which owns all of the outstanding shares of capital stock of Golar Freeze Holding Co., a Marshall Islands corporation which is the owner of the Golar Freeze;

 

WHEREAS, a condition to the closing of the purchase and sale of the Shares pursuant to the Purchase and Sale Agreement is the execution and delivery of this Amendment by all of the Parties; and

 

WHEREAS, the Parties desire to amend the Omnibus Agreement to delete the provisions requiring Golar LNG to indemnify the MLP for Losses with respect to any payments required to be made pursuant to the terms of the Golar Winter Security Documents.

 

In consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

SECTION 1.  Amendment to Section 8.1.  Section 8.1 of the Omnibus Agreement is amended to delete subsection (e).

 

SECTION 2.  Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

 

SECTION 3.  Counterparts.  This Amendment may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document.  All counterparts shall be construed together and shall constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, the Parties have executed this Amendment on, and effective as of, the date first above written.

 

	
 
    	
GOLAR LNG LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
Par-la-Ville Place
    
	
 
    	
14 Par-la-Ville Road
    
	
 
    	
Hamilton HM 08
    
	
 
    	
Bermuda
    
	
 
    	
Phone
    	
(1) 441 295 4705
    
	
 
    	
Fax:
    	
(1) 441 295 3494
    
	
 
    	
Attention:
    	
Georgina Sousa
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GOLAR LNG PARTNERS LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
Par-la-Ville Place
    
	
 
    	
14 Par-la-Ville Road
    
	
 
    	
Hamilton HM 08
    
	
 
    	
Bermuda
    
	
 
    	
Phone
    	
(1) 441 295 4705
    
	
 
    	
Fax:
    	
(1) 441 295 3494
    
	
 
    	
Attention:
    	
Georgina Sousa
    
					

 

 

	
 
    	
GOLAR PARTNERS OPERATING LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
Address for Notice:
    
	
 
    	
 
    
	
 
    	
Par-la-Ville Place
    
	
 
    	
14 Par-la-Ville Road
    
	
 
    	
Hamilton HM 08
    
	
 
    	
Bermuda
    
	
 
    	
Phone
    	
(1) 441 295 4705
    
	
 
    	
Fax:
    	
(1) 441 295 3494
    
	
 
    	
Attention:
    	
Georgina SousaExhibit 4.16

 

Date 18 October 2011

 

GOLAR LNG LIMITED

as Lender

 

-and-

 

GOLAR LNG PARTNERS L.P.

as Borrower

 

 

LOAN AGREEMENT

 

 

relating to term loan facility of up to

US$222,309,582.29

 

Watson, Farley & Williams

London

 

 

INDEX

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
INTERPRETATION
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2
    	
FACILITY
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
3
    	
DRAWDOWN
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
4
    	
INTEREST   AND DEFAULT INTEREST
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
5
    	
REPAYMENT,   PREPAYMENT AND CANCELLATION
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
6
    	
CONDITIONS   PRECEDENT
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
7
    	
REPRESENTATIONS   AND WARRANTIES
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
UNDERTAKINGS
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
9
    	
PAYMENTS   AND CALCULATIONS
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
10
    	
EVENTS OF   DEFAULT
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
11
    	
COSTS
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
12
    	
INDEMNITIES
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
13
    	
NO   SET-OFF OR TAX DEDUCTION
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
14
    	
ILLEGALITY
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
15
    	
TRANSFERS
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
16
    	
NOTICES
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
17
    	
SUPPLEMENTAL
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
18
    	
LAW AND   JURISDICTION
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 1 DRAWDOWN NOTICE
    	
11
    
	
 
    	
 
    
	
EXECUTION PAGE
    	
12
    

 

 

THIS AGREEMENT is made on 11 October 2011

 

BETWEEN

 

(1)                                 GOLAR LNG LIMITED, a company incorporated in Bermuda whose registered office is at 14 Par La Ville Place, Par La Ville Road, Hamilton, Bermuda (the “Lender”); and

 

(2)                                 GOLAR LNG PARTNERS L.P., a limited partnership formed in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the “Borrower)”.

 

IT IS AGREED as follows:

 

1                                         INTERPRETATION

 

1.1                               Definitions.  In this Agreement:

 

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

 

(a)                                 31 December 2011; or

 

(b)                                 if earlier, the Drawdown Date or the date on which the Lender’s obligation to make the Loan is cancelled or terminated;

 

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

 

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

 

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

 

“Drawdown Notice” means a notice in the form set out in Schedule 1 (or in any other form approved by the Lender);

 

“Event of Default” means any of the events or circumstances described in Clause 10.1;

 

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

 

“Nordea Facility Agreement” means the facility agreement dated 29 September 2008 (as amended and supplemented to date) and made between (i) the Borrower as borrower, (ii) the banks and financial institutions listed in Schedule 1 thereto as lenders, (iii) Nordea Bank Norge ASA, DnB NOR Bank ASA, Citigroup Global Markets Limited, BNP Paribas and Lloyds TSB Bank plc as lead arrangers, (iv) Nordea Bank Finland plc, DnB NOR Bank ASA, Citibank N.A., BNP Paribas and Lloyds TSB Bank plc as swap banks, (v) Nordea Bank Norge ASA as facility agent (the “Facility Agent”), (vi) Nordea Bank Norge ASA as security agent and (vii) Citigroup Global Markets Limited as bookrunner, in respect of a loan facility to the Borrower of up to US$285,000,000; and

 

“Repayment Date” means the date on which the Loan is to be repaid in accordance with Clause 5.

 

1.2                               Clause references.  References in this Agreement to Clauses are, unless otherwise specified, references to clauses of this Agreement.

 

 

1.3                               References to persons.  References to “person” or “persons” or to words importing persons include, without limitation, individuals, firms, corporations, government agencies, committees, departments, authorities and other bodies, incorporated or unincorporated, whether having distinct legal personality or not.

 

1.4          Clause headings.  Clause headings are for ease of reference only.

 

2                                         FACILITY

 

2.1                               Amount of facility.  Subject to the other provisions of this Agreement, the Lender shall make a loan facility not exceeding $222,309,582.29 available to the Borrower.

 

2.2                               Purpose of facility.  The Borrower undertakes to use the Loan to finance the purchase by it of all of the shares in Golar LNG Holding Co. and for general working capital requirements.

 

3                                         DRAWDOWN

 

3.1                               Request for advance of Loan.  Subject to the following conditions, the Borrower may request the Loan to be made by ensuring that the Lender receives a completed Drawdown Notice not later than 11.00 a.m. (London time) 1 Business Day prior to the intended Drawdown Date.

 

3.2                               Availability.  The conditions referred to in Clause 3.1 are that:

 

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

 

(b)                                 the amount of the Loan shall not exceed $222,309,582.29.

 

3.3                               Drawdown Notice irrevocable.  A Drawdown Notice must be signed by an officer of the Borrower; and once served, a Drawdown Notice cannot be revoked without the prior consent of the Lender.

 

3.4                               Disbursement of Loan.  Subject to the provisions of this Agreement, the Lender shall on the Drawdown Date make the Loan to the Borrower; and payment to the Borrower shall be made to the account which the Borrower specifies in the Drawdown Notice.

 

4                                         INTEREST AND DEFAULT INTEREST

 

4.1                               Interest.  The Borrower shall pay interest on the amount of the Loan at a fixed rate of 6.75 per cent. per annum (accruing daily) payable quarterly in arrears from the Drawdown Date until and including the Repayment Date.

 

4.2                               Payment of default interest on overdue amounts.  The Borrower shall pay interest in accordance with the following provisions of this Clause 4 on any amount payable by the Borrower under this Agreement which the Lender does not receive on or before the Repayment Date or, if payable on demand, the date on which the demand is served or, if immediately due and payable under this Agreement, the date on which it became immediately due and payable.

 

4.3                               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 a fixed rate of 8.75 per cent. per annum.

 

4.4                               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.

 

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4.5                               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.

 

5                                         REPAYMENT, PREPAYMENT AND CANCELLATION

 

5.1                               Repayment of Loan.  The Borrower shall repay the Loan in full together with any other sums owing by the Borrower to the Lender under, or in respect of, this Agreement on the date falling 3 years after the Drawdown Date.

 

5.2                               Voluntary prepayment.  The Borrower may prepay the whole or part only of the Loan on giving at least 10 days’ prior written notice to the Lender.

 

5.3                               Effect of notice of prepayment.  A prepayment notice may not be withdrawn or amended without the consent of the Lender 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.

 

5.4                               Mandatory prepayment.  The Borrower shall be obliged to prepay the whole of the Loan if, after it has directly or indirectly become the legal and/or beneficial owner of m.v. “KHANNUR”, it enters into another acquisition with the Lender or with any other party on or before the date such acquisition is completed, unless the Lender agrees at such time to refinance the Loan on such terms and subject to such conditions as the Lender may agree with the Borrower acting in good faith.

 

5.5                               Amounts payable on prepayment.  A prepayment shall be made together with any amount payable under this Agreement in respect of the amount prepaid.

 

5.6                               No reborrowing.  No amount prepaid may be reborrowed.

 

6              CONDITION PRECEDENT

 

6.1                               Conditions.  The Lender’s obligation to make the Loan is subject to the condition that, on the Drawdown Date, but prior to the making of the Loan, no Event of Default has occurred and is continuing or would result from the borrowing of the Loan.

 

7              REPRESENTATIONS AND WARRANTIES

 

7.1                               Borrower’s representations and warranties.  The Borrower represents and warrants to the Lender that the following statements are, at the date hereof, true and accurate:

 

(a)                                 it is duly formed with limited liability under the laws of the Republic of the Marshall Islands and has full power and authority to enter into and perform its obligations under this Agreement;

 

(b)                                 the execution, delivery and performance of this Agreement:

 

(i)                                     have been duly authorised by all necessary corporate action on its part; and

 

(ii)                                  do not contravene any applicable law, regulation or order binding on it or any of its assets or its constitutional documents;

 

(c)                                  the execution, delivery and performance by it of this Agreement does not require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect of, any relevant governmental authority or agency, except such as have been obtained and are in full force and effect; and

 

(d)                                 this Agreement constitutes its legal, valid and binding obligations.

 

3

 

7.2                               Survival of representations and warranties.  The representations and warranties given in this Clause 7 shall survive the execution of this Agreement.

 

8                                         UNDERTAKINGS

 

8.1                               General.  The Borrower undertakes with the Lender to comply with the following provisions of this Clause 8 at all times whilst it has any outstanding obligations or liabilities under this Agreement, except as the Lender may otherwise permit.

 

8.2                               Notification of Event of Default.  The Borrower will promptly inform the Lender of any event which constitutes or may constitute an Event of Default or which may adversely affect the Borrower’s ability to perform its obligations under this Agreement.

 

8.3                               Information.  The Borrower will deliver to the Lender such financial or other information in respect of its business and financial status as the Lender may reasonably require including, but not limited to, copies of its unaudited quarterly financial statements and of its audited annual financial statements.

 

8.4                               Financial covenants.  The Borrower undertakes with the Lender to comply with the provisions of clause 8.4 of the Nordea Facility Agreement as if those provisions (except for the last paragraph of clause 8.4.4) and the relevant definitions contained in clause 1 of the Nordea Facility Agreement were set out herein in full, except references to “the Creditors”, “the Facility Agent” shall be to “the Lender” and with any other necessary consequential modifications, as such provisions may be amended upon review by the Facility Agent in accordance with the last paragraph of clause 8.4.4.

 

9                                         PAYMENTS AND CALCULATIONS

 

9.1                               Currency and method of payments  All payments to be made by the Borrower to the Lender under this Agreement shall be made to the Lender:

 

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

 

(b)                                 in same day Dollar funds; and

 

(c)                                  to such account of the Lender as the Lender may from time to time notify to the Borrower.

 

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

 

(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.

 

9.3                               Basis for calculation of periodic payments.  Interest and default interest 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.

 

10                                  EVENTS OF DEFAULT

 

10.1                        Events of Default.  An Event of Default occurs if:

 

(a)                                 the Borrower fails to pay when due any sum payable under this Agreement unless such failure is due to a technical breakdown or communication error in which case the Borrower shall rectify such non-payment within 3 Business Days of it having been notified of the missed payment by the Lender; or

 

4

 

(b)                                 any breach by the Borrower occurs of any provision of this Agreement (other than a breach covered by paragraph (a)) which, in the opinion of the Lender, is capable of remedy and which continues unremedied 10 Business Days after receipt by the Borrower of a written request from the Lender that the breach be remedied; or

 

(c)                                  any information given by the Borrower to the Lender in relation to this Agreement proves to be misleading or materially inaccurate or incorrect when made; or

 

(d)                                 any other loan, guarantee or other obligation of the Borrower exceeding $10,000,000 is declared (or is capable of being declared) by the relevant creditor or creditors due prematurely due to a default, to non-payment or any security in respect thereof becomes enforceable; or

 

(e)                                  a lien, arrest, distress or similar event is levied upon or against any substantial part of the assets of the Borrower which is not discharged or disputed in good faith within 10 Business Days after the Borrower has become aware of the same; or

 

(f)                                   a substantial part of the Borrower’s business or assets is destroyed, abandoned, seized, appropriated or forfeited for any reason; or

 

(g)                                  any order shall be made by any competent court or resolution passed by the Borrower for the appointment of a liquidator, administrator or receiver of, or for the winding-up of, the Borrower; or

 

(h)                                 an encumbrancer takes possession of or a receiver is appointed of the whole or, in the opinion of the Lender, any material part of the assets of the Borrower or a distress, execution or other process is levied or enforced upon or sued out against the whole or, in the opinion of the Lender, a material part of the assets of the Borrower; or

 

(i)                                     the Borrower shall stop payment or shall be unable to, or shall admit inability to, pay its debts as they fall due, or shall be adjudicated or found bankrupt or insolvent, or shall enter into any composition or other arrangement with its creditors generally; or

 

(j)                                    any event shall occur which under the law of any jurisdiction to which the Borrower is subject has an effect equivalent or similar to any of the events referred to in Clause 10.1(g), (h) or (i); or

 

(k)                                 the Borrower ceases or suspends or threatens to cease or suspend the carrying on of its business or a part of its business or disposes of or threatens to dispose of a substantial part of its business or assets which, in the opinion of the Lender, is material in the context of this Agreement; or

 

(l)                                     it becomes unlawful for the Borrower to fulfil its obligations under this Agreement; or

 

(m)                             Golar GP LLC ceases to be the General Partner of the Borrower; or

 

(n)                                 the constitutional documents of the Borrower are amended or varied in any way which is, in the reasonable opinion of the Lender, adverse to its interests in connection with this Agreement.

 

10.2                       Actions following an Event of Default.  On, or at any time after, the occurrence of an Event of Default the Lender may:

 

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

 

5

 

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

 

(c)                                  take any other action which, as a result of the Event of Default or any notice served under paragraph (a) or (b), the Lender is entitled to take under this Agreement or any applicable law.

 

10.3                        Termination of obligations.  On the service of a notice under Clause 10.2(a), all the obligations of the Lender to the Borrower under this Agreement shall terminate.

 

10.4                        Acceleration of Loan.  On the service of a notice under Clause 10.2(b), the Loan and all other amounts accrued or owing from the Borrower under this Agreement shall become immediately due and payable or, as the case may be, payable on demand.

 

11                                  COSTS

 

11.1                        Costs.  The Borrower shall pay all reasonable costs incurred by the Lender in connection with the preparation of this Agreement and any and all other costs incurred by the Lender in connection with the facility provided pursuant to this Agreement.

 

12                                  INDEMNITIES

 

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

 

(a)                                 the Loan not being borrowed on the date specified in the Drawdown Notice for any reason other than a default by the Lender;

 

(b)                                 the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the Repayment Date or other relevant date;

 

(c)                                  any failure (for whatever reason) by the Borrower to make payment of any amount due under this Agreement on the due date or, if so payable, on demand; and

 

(d)                                 the occurrence of an Event of Default and/or the acceleration of repayment of the Loan under Clause 10,

 

and in respect of any tax (other than tax on its overall net income) for which the Lender is liable in connection with any amount paid or payable to the Lender (whether for its own account or otherwise) under this Agreement.

 

12.2                        Breakage costs.  Without limiting its generality, Clause 12.1 covers any claim, expense, liability or loss, including a loss of a prospective profit, incurred by the Lender in liquidating or employing deposits from third parties acquired or arranged to fund or maintain all or any part of the Loan and/or any overdue amount (or an aggregate amount which includes the Loan or any overdue amount).

 

13                                 NO SET-OFF OR TAX DEDUCTION

 

13.1                        No deductions.  All amounts due from the Borrower under this Agreement shall be paid:

 

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

 

6

 

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

 

13.2                        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 Lender 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; and

 

(c)                                  the amount due in respect of the payment shall be increased by the amount necessary to ensure that the Lender 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.

 

13.3                        Exclusion of tax on overall net income.  In this Clause 13  “tax deduction” means any deduction or withholding for or on account of any present or future tax except tax on the Lender’s overall net income.

 

14                                  ILLEGALITY

 

14.1                        Illegality.  This Clause 14 applies if the Lender notifies the Borrower 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

 

(b)                                 contrary to, or inconsistent with, any regulation,

 

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

 

14.2                        Notification and effect of illegality.  On the Lender notifying the Borrower under Clause 14.1, the Commitment shall terminate; and thereupon or, if later, on the date specified in the Lender’s notice under Clause 14.1 as the date on which the notified event would become effective the Borrower shall prepay the Loan in full.

 

14.3                        Mitigation.  If circumstances arise which would result in a notification under Clause 14.1 then, without in any way limiting the rights of the Lender under Clause 14.2, the Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement to a subsidiary not affected by the circumstances but the 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.

 

15                                  TRANSFERS

 

15.1                        No Transfers.  Neither party may, without the consent of the other party, transfer any of its rights, liabilities or obligations under this Agreement.

 

7

 

16                                  NOTICES

 

16.1                        General.  Unless otherwise specifically provided, any notice under or in connection with this Agreement shall be given by letter or fax and shall be effective upon receipt; and references in this Agreement to written notices, notices in writing and notices signed by particular persons shall be construed accordingly.

 

16.2                        Addresses for communications.  A notice by letter or fax shall be sent:

 

(a)                                 to the Lender:

 

	
Golar LNG Limited
    
	
P O Box HM1593
    
	
Par La Ville Place, 4th Floor
    
	
Par La Ville Road
    
	
Hamilton
    
	
HM9X Bermuda
    
	
 
    	
 
    
	
Fax:
    	
+441 295 3494
    
	
Attention:
    	
The President
    
	
 
    	
 
    
	
with a copy to:
    
	
 
    
	
Golar Management Ltd
    
	
13th Floor, One America Square
    
	
17 Crosswall
    
	
London EC3N 2LB
    
	
 
    	
 
    
	
Fax:
    	
+44(0) 20 7063 7901
    
	
Attention:
    	
Chief Accounting Officer
    

 

 

(b)                                 to the Borrower:

 

	
c/o Golar LNG Limited
    
	
P O Box HM1593
    
	
Par La Ville Place, 4th Floor
    
	
Par La Ville Road
    
	
Hamilton
    
	
HM9X Bermuda
    
	
 
    
	
Fax:
    	
+441 295 3494
    
	
Attention:
    	
The President
    
	
 
    	
 
    
	
with a copy to:
    
	
 
    
	
Golar Management Ltd
    
	
13th Floor, One America Square
    
	
17 Crosswall
    
	
London EC3N 2LB
    
	
 
    	
 
    
	
Fax:
    	
+44(0) 20 7063 7901
    
	
Attention:
    	
Chief Accounting Officer
    

 

or to such other address as the relevant party may notify the other.

 

8

 

17                                  SUPPLEMENTAL

 

17.1                        Rights cumulative.  The rights and remedies which this Agreement gives to the Lender are:

 

(a)                                 cumulative;

 

(b)                                 may be exercised as often as appears expedient; and

 

(c)                                  shall not, unless explicitly and specifically stated so, be taken to exclude or limit any right or remedy conferred by any law.

 

17.2                        Severability.  If any provision of this Agreement is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or legality of the other provisions of this Agreement.

 

17.3                        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.

 

18                                  LAW AND JURISDICTION

 

18.1                        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.

 

18.2                        Exclusive English jurisdiction.  Subject to Clause 18.3, the courts of England shall have exclusive jurisdiction to settle any Dispute.

 

18.3                        Choice of forum for the exclusive benefit of the Lender.  Clause 18.2 is for the exclusive benefit of the Lender, which reserves the rights:

 

(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.

 

18.4                        Process agent.  The Borrower irrevocably appoints Golar Management Ltd at its registered office for the time being, presently at 13th Floor, One America Square, 17 Crosswall, London EC3N 2LB, 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.

 

18.5                        Lender’s rights unaffected.  Nothing in this Clause 18 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.

 

18.6                        Meaning of “proceedings”.  In this Clause 18, “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).

 

9

 

THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

 

10

 

SCHEDULE 1

 

DRAWDOWN NOTICE

 

To:                             Golar LNG Limited,

14 Par La Ville Place,

Par La Ville Road,

Hamilton, Bermuda

 

Attention: The President

 

Cc:                             Golar Management Ltd

13th Floor, One America Square

17 Crosswall

London EC3N 2LB

 

Attention: Chief Accounting Officer

 

[·] 2011

 

1                                         We refer to the loan agreement (the “Loan Agreement”) dated   October 2011 and made between us as Borrower and you as Lender in connection with a term loan facility of up to US$222,309,582.29.  Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice.

 

2                                         We request to borrow as follows:-

 

(a)                                 Amount: US$[·];

 

(b)                                 Drawdown Date:  [·];

 

(c)                                  Payment instructions : account in our name and numbered [·] with [·] of [·].

 

3                                         We represent and warrant that no Event of Default or has occurred or will result from the borrowing of the Loan.

 

4                                         We confirm that we will indemnity you against any loss or expense which you may sustain or incur as a consequence of the Loan not being drawn, including but not limited to any loss or expenses incurred by you to fund the Loan.

 

5                                        This notice cannot be revoked without the prior consent of the Lender.

 

Yours faithfully

 

	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
for and on behalf of
    	
 
    
	
GOLAR LNG PARTNERS L.P.
    	
 
    

 

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EXECUTION PAGE

 

	
BORROWER
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
) 
    	
/s/ Georgina Sousa
    	
 
    
	
 
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
GOLAR LNG LIMITED
    	
)
    	
 
    	
 
    
	
in the presence of:
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
[EV]
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
LENDER
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
) 
    	
/s/ Georgina Sousa
    	
 
    
	
 
    	
)
    	
 
    	
 
    
	
for and on behalf of
    	
)
    	
 
    	
 
    
	
GOLAR LNG PARTNERS L.P.
    	
)
    	
 
    	
 
    
	
in the presence of:
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
[EV]
    	
 
    	
 
    	
 
    

 

12

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