Document:

Exhibit 10.106

 

 

IRREVOCABLE LETTER OF GUARANTEE

 

FOR THE 2ND, 3RD, AND 4TH INSTALLMENTS

 

Date: 23 April 2014

 

	
To:
    	
Shanghai Waigaoqiao Shipbuilding Co., Ltd.,
    
	
 
    	
3001 Zhouhai Road, Pudong New District,
    
	
 
    	
Shanghai 200137, the People’s Republic of China
    

 

Dear Sirs,

 

(1)                 In consideration of your entering into a shipbuilding contract dated 21st March,2014 (“the Shipbuilding Contract”) with NAVIG8 CRUDE TANKERS INC. or its Nominee as the buyer (“the BUYER”) for the construction of one (1) 300,000 Metric Tons Deadweight Crude Oil Tanker known as Shanghai Waigaoqiao Shipbuilding Co., Ltd.’s Hull No. H1385 (“the VESSEL”), we, NAVIG8 CRUDE TANKERS INC., hereby IRREVOCABLY, ABSOLUTELY and UNCONDITIONALLY guarantee, as the primary obligor and not merely as the surety, the due and punctual payment by the BUYER of each and all of the 2nd, 3rd, and 4th installments of the Contract Price amounting to a total sum of United States Dollars Twenty Nine Million Six Hundred and Ten Thousand Nine Hundred only (US$ 29,610,900.00) as specified in (2) below.

 

(2)                 The instalments guaranteed hereunder, pursuant to the terms of the Shipbuilding Contract, comprise the 2nd installment in the amount of U.S. Dollars Nine Million Eight Hundred and Seventy Thousand Three Hundred Only (US$9,870,300.00)payable by the BUYER within three (3) Singapore and New York business days after cutting of the first steel plate in your SELLER’S workshop, the third installment in the amount of U.S. Dollars Nine Million Eight Hundred and Seventy Thousand Three Hundred Only (US$9,870,300.00) payable by the BUYER within three (3) Singapore and New York business days after keel-laying of the first section of the VESSEL, and the 4th installment in the amount U.S. Dollars Nine Million Eight Hundred and Seventy Thousand Three Hundred Only (US$9,870,300.00) payable by the BUYER within three (3) Singapore and New York business days after launching of the VESSEL.

 

(3)                 We also IRREVOCABLY, ABSOLUTELY and UNCONDITIONALLY guarantee, as primary obligor and not merely as surety, the due and punctual payment by the BUYER of interest on each Instalment guaranteed hereunder at the rate of six percent (6%) per annum from and including the first day after the date of instalment in default until the date of full payment by us of such amount guaranteed hereunder.

 

Navig8 Crude Tankers Inc.

Registered office: Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Island

MH 96960

 

 

(4)                 In the event that the BUYER fails to punctually pay any Instalment guaranteed hereunder or the BUYER fails to pay any interest thereon, and any such default continues for a period of fifteen (15) days, then, upon receipt by us of your first written demand, we shall immediately pay to you or your assignee all unpaid 2nd, 3rd and 4th instalments, together with the interest as specified in paragraph (3) hereof, without requesting you to take any or further action, procedure or step against the BUYER or with respect to any other security which you may hold.

 

(5)                 We hereby agree that at your option this Guarantee and the undertaking hereunder shall be assignable to and if so assigned shall inure to the benefit of any 3rd party designated by you or Industrial And Commercial Bank Of China Limited, Shanghai Municipal Branch, as your assignee as if any such third party or Industrial And Commercial Bank Of China Limited, Shanghai Municipal Branch were originally named herein.

 

(6)                 Any payment by us under this Guarantee shall be made in the Unites States Dollars by telegraphic transfer to Industrial And Commercial Bank Of China Limited, Shanghai Municipal Branch, 9 Pudong Avenue, Shanghai, China for credit to Account No.1001190709148073602 of Industrial And Commercial Bank Of China Limited, Shanghai Municipal Branch (Swift: ICBKCNBJSHI), as receiving bank nominated by you for credit to the account of you with Industrial And Commercial Bank Of China Limited, Shanghai Municipal Branch, 9 Pudong Avenue, Shanghai, China for credit to Account No.1001190709148073602 of Industrial And Commercial Bank Of China Limited, Shanghai Municipal Branch (Swift: ICBKCNBJSHI) or through other receiving bank to be nominated by you from time to time, in favour of you or your assignee.

 

(7)                 Our obligations under this guarantee shall not be affected or prejudiced by any dispute between you as the SELLER and the BUYER under the Shipbuilding Contract or by the SELLER’S delay in the construction and/or delivery of the VESSEL due to whatever causes or by any variation or extension of their terms thereof or by any security or other indemnity now or hereafter held by you in respect thereof, or by any time or indulgence granted by you or any other person in connection therewith, or by any invalidity or unenforceability of the terms thereof, or by any act, omission, fact or circumstances whatsoever, which could or might, but for the foregoing, diminish in any way our obligations under this Guarantee.

 

(8)                 Any claim or demand shall be in writing signed by one of your officers and may be served on us either by hand or by post and if sent by post to NAVIG8 CRUDE TANKERS INC., c/o Navig8 Asia Pte Ltd, Three Temasek Avenue, #25-01 Centennial Tower, Singapore,

 

 

039190, FAO: Philip Stone (or such other address as we may notify to you in writing), or by email (email: notices@navig8group.com and Philip@navig8group.com) via Industrial And Commercial Bank Of China Limited, with confirmation in writing.

 

(9)                 This Letter of Guarantee shall come into full force and effect upon delivery to you of this Guarantee and shall continue in force and effect until the VESSEL is delivered to and accepted by the BUYER and the BUYER shall have performed all its obligations for taking delivery thereof or until the full payment of all 2nd, 3rd, and 4th Instalments together with the aforesaid interests by the BUYER or us, whichever first occurs.

 

(10)          The maximum amount, however, that we are obliged to pay to you under this Guarantee shall not exceed the aggregate amount of U.S. Dollars Twenty Nine Million Nine Hundred and Seven Thousand and Nine only (US$29,907,009.00) being an amount equal to the sum of:-

 

(a)         All the 2nd, 3rd and 4th instalments guaranteed hereunder in the total amount of United States Dollars Twenty Nine Million Six Hundred and Ten Thousand Nine Hundred only (US$ 29,610,900.00); and

 

(b)         Interest at the rate of six percent (6%) per annum on the Instalment for a period of sixty (60) days in the amount of United States Dollars Two Hundred Ninety Six Thousand One Hundred and Nine only (US$ 296,109.00).

 

(11)          All payments by us under this Guarantee shall be made without any set-off or counterclaim and without deduction or withholding for or on account of any taxes, duties, or charges whatsoever unless we are compelled by law to deduct or withhold the same. In the latter event we shall make the minimum deduction or withholding permitted and will pay such additional amounts as may be necessary in order that the net amount received by you after such deductions or withholdings shall equal the amount which would have been received had no such deduction or withholding been required to be made.

 

(12)                  This Letter of Guarantee shall be construed in accordance with and governed by the Laws of England. We hereby submit to the non-exclusive jurisdiction of the English courts for the purposes of any legal action or proceedings in connection herewith in England.

 

(13)                  When this Letter of Guarantee shall have expired as aforesaid, you will return the same to us without any request or demand from us.

 

 

IN WITNESS WHEREOF, we have caused this Letter of Guarantee to be executed and delivered by our duly authorized representative the day and year above written.

 

 

	
Very Truly Yours
    	
 
    	
 
    
	
 
    	
 
    	
DANIEL CHU
    
	
/s/ Daniel Chu
    	
 
    	
SECRETARY
    
	
By: NAVIG8 CRUDE TANKERS INC.Exhibit 10.107

 

	

    	
 
    
	
 
    	
 
    	
 
    
	
GLOBAL TRADE AND RECEIVEABLES FINANCE
    	
 
    
	
BANKER’S GUARANTEE SECTION
    	
 
    
	
 
    	
 
    
	
ADVISING OF GUARANTEE AMENDMENT ADVICE
    	
DATE 24APR2014
    
				

 

TO:

NAVIG8 CRUDE TANKERS INC

3 TEMASEK AVENUE,

HEX25 - 01 CENTENNIAL TOWER,

SINGAPORE 039190

 

DEAR SIR/MADAM,

 

	
ISSUING BANK REFERENCE NO
    	
:
    	
SLGQA020140229
    
	
ISSUING BANK
    	
:
    	
KOREA DEVELOPMENT BANK
    
	
APPLICANT
    	
:
    	
HHIC - PHIL INC.
    

 

WITHOUT ANY RESPONSIBILITY ON OUR PART AND ON THE PART OF ANY OF OUR OFFICERS, WE ADVISE HAVING RECEIVED AN AMENDMENT TO THE ABOVE GUARANTEE.

 

PLEASE ENSURE THE ORIGINAL AMENDMENT IS ATTACHED TO THE ORIGINAL GUARANTEE.

 

WE ARE PLEASED TO RELEASE THE ORIGINAL INSTRUMENT TO YOU UPON RECEIPT OF YOUR CHEQUE PAYMENT BEING OUR HANDLING FEE, PAYABLE TO ‘THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED’ OR ALTERNATIVELY, YOU MAY AUTHORISE US TO DEBIT SUCH AMOUNT FROM YOUR ACCOUNT MAINTAIN WITH US BY SIGNING AND RETURNING A COPY COPY OF THIS LETTER.

 

PLEASE NOTE THAT THE PAYMENT OF THE ABOVE CHARGES AND COLLECTION OF THE ORIGINAL INSTRUMENT SHOULD BE CARRIED OUT WITHIN ONE (1) MONTH FROM THE DATE OF THIS LETTER. SHOULD YOU FAIL TO MAKE PAYMENT OF THE ABOVE FEE AND/OR COLLECT THE ORIGNAL INSTRUMENT WITHIN ONE (1) MONTH FROM THE DATE OF THIS LETTER, WE WILL DESTROY THE ORIGNAL INSTRUMENT WITHOUT FURTHER REFERENCE TO YOU.

 

EMAIL OR FACSIMILE OF THIS ADVICE IS NOT DEEMED TO BE AN OPERATIVE INSTRUMENT.

 

DETAILS OF OUR CHARGES AS FOLLOWS : -

 

HANDLING FEE (AMD) SGD                                                                                                                            100.00

 

WE ARE PLEASED TO BE OF ASSISTANCE TO YOU.

 

FOR ANY ENQUIRIES, PLEASE E-MAIL US AT : TRADE.GTEE@HSBC.COM.SG QUOTING THE ISSUING BANK’S REFERENCE NUMBER.

 

	
YOURS FAITHFULLY
    	
TO:
    	
HSBC SINGAPORE
    
	
 
    	
 
    	
(BANKER’S GUARANTEE SECTION)
    
	
 
    	
 
    
	
  The Hongkong and Shanghai Banking Corporation Limited
    	
 
    
	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    
	
[ILLEGIBLE]
    	
 
    
	
[ILLEGIBLE]
    	
 
    
	
[ILLEGIBLE]
    	
 
    
	
[ILLEGIBLE]
    	
 
    

 

1

 

	
 
    	
 
    	
WE AUTHORISED YOU TO DEBIT OUR
    
	
 
    	
 
    	
A/C NO.
    	
 
    
	
 
    	
 
    	
FOR THE ABOVE.
    
	
 
    	
 
    	
 
    
	
Heng Wen Xiang
    	
 
    	
 
    
	
053928
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ [ILLEGIBLE] 
    	
 
    	
 
    
	
AUTHORISED SIGNATORY
    	
 
    	
AUTHORISED SIGNATORY
    
	
 
    	
 
    	
COMPANY STAMP :
    
	
 
    	
 
    	
DATE:
    
	
 
    	
 
    	
 
    
	
  The Hongkong and Shanghai Banking Corporation Limited
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
 
    
	
[ILLEGIBLE]
    	
 
    	
 
    

 

2

 

GROUP MESSAGING GATEWAY (GMG2.08.002)

 

	
PRT NO SGRRC2Q:69139 BY   SGR OPR SYS Apr 22, 2014 AT 1:28:46 PM
    
	
 
    
	
IRN 141120477773
    	
SERVICE
    	
IN SWF8
    	
HASH
    	
1111
    
	
SRN 22HSBCSGSGAXXX917052
    	
SERVICE
    	
OUT
    	
OSN
    	
917052
    
	
 
    	
 
    	
 
    
	
SENDER ADDRESS
    	
KODBKRSE
    	
 
    
	
ROUTE CODE (KODBKRSE)
    	
KOREA DEVELOPMENT BANK
    	
 
    
	
 
    	
16-3 YEOUIDO-DONG
    	
 
    
	
 
    	
YEONGDEUNGPO-GU SEOUL
    	
 
    
	
 
    	
150-973 KOREA
    	
 
    
						

 

*** INFORMATION WARNING BITS SET ***

 

Copy Service Checked, RMA Authorization success

Standard Digest Verification Success, Processed Routing Msg

Checksum correct, Message Parsed

 

{1 : F01HSBCSGSGAXXX3931917052}

{2 : O7601428140422KODBKRSEAXXX85459942371404221328N}

{3 : {108:4552014SN0036431}}

 

MT 760 GUARANTEE / STANDBY LETTER OF CREDIT

 

27                                  Sequence of Total

Number                                                                                                                                                                                                                                                    1

Total                                                                                                                                                                                                                                                                   /1

20                                  Transaction Reference Number                                                                                                                      SLGQA020140229

23                                  Further Identification                                                                                                                                                                            ISSUE

40C                         Applicable Rules

Type                                                                                                                                                                                                                                                                    OTHR

Narrative                                                                                                                                                                                                                                             /LAWS OF ENGLAND

77C                         Details of Guarantee

LETTER OF GUARANTEE

 

·

LETTER OF GUARANTEE NO.: SLGQA020140229

 

·

DATE : APRIL 11, 2 014

 

·

GENTLEMEN:

 

·

WE HEREBY OPEN OUR IRREVOCABLE LETTER OF GUARANTEE NUMBER SLGQA020140229 IN FAVOUR OF NAVIG8 CRUDE TANKERS INC (HEREINAFTER CALLED THE ‘BUYER’) FOR ACCOUNT OF HRIC-PHIL INC. (HEREINAFTER CALLED THE ‘BUILDER’) AS FOLLOWS IN CONNECTION WITH THE SHIPBUILDING CONTRACT DATED MARCH 25, 2014 (HEREINAFTER CALLED ‘CONTRACT’) MADE BY AND BETWEEN THE BUYER AND THE BUILDER FOR THE CONSTRUCTION OF ONE (1) 300, 000 DWT CLASS CRUDE OIL CARRIER HAVING THE BUILDER’S HULL NO. NTP0137 (HEREINAFTER CALLED THE ‘VESSEL’)

 

·

IF, IN CONNECTION WITH THE TERMS OF THE CONTRACT, WHETHER SO SUPPLEMENTED, AMENDED, CHANGED OR MODIFIED, THE BUYER SHALL BECOME ENTITLED TO A REFUND OF THE ADVANCE PAYMENT MADE TO THE BUILDER PRIOR TO THE DELIVERY OF THE VESSEL, WE HEREBY IRREVOCABLY GUARANTEE THE REPAYMENT OF THE SAME TO THE BUYER WITHIN TWENTY (20) DAYS AFTER DEMAND NOT EXCEEDING USD 19,272,100. - (SAY U.S. DOLLARS NINETEEN MILLION TWO HUNDRED SEVENTY TWO THOUSAND ONE HUNDRED TOGETHER WITH INTEREST THEREON AT THE RATE OF SIX PER CENT (6PERCENT) PER ANNUM FROM THE DATE FOLLOWING THE DATE OF RECEIPT BY THE BUILDER TO THE DATE OF REMITTANCE BY TELEGRAPHIC TRANSFER OF SUCH REFUND.

 

·

THE AMOUNT OF THIS GUARANTEE WILL BE AUTOMATICALLY INCREASED UPON THE BUILDER’S RECEIPT OF THE RESPECTIVE INSTALMENT, NOT MORE THAN THREE (3) TIMES, EACH TIME BY THE AMOUNT OF INSTALMENT PLUS INTEREST THEREON AS PROVIDED IN THE CONTRACT, BUT IN ANY EVENTUALITY THE AMOUNT OF THIS GUARANTEE SHALL NOT EXCEED THE TOTAL SUM OF USD 48,180,250 (SAY U.S. DOLLARS FORTY EIGHT MILLION ONE HUNDRED EIGHTY THOUSAND TWO HUNDRED FIFTY ONLY) PLUS INTEREST THEREON AT THE RATE OF SIX PER CENT (6PERCENT) PER ANNUM FROM THE DATE FOLLOWING THE DATE OF THE BUILDER’S RECEIPT OF EACH INSTALMENT TO THE DATE OF REMITTANCE BY TELEGRAPHIC TRANSFER OF THE REFUND. HOWEVER, IN THE EVENT OF CANCELLATION OF THE CONTRACT BANG BASED ON DELAYS DUE TO FORCE MAJEURE OR OTHER CAUSES BEYOND

 

1

 

THE CONTROL OF THE BUILDER, THE INTEREST RATE OF REFUND SHALL BE REDUCED TO FOUR PER CENT (4PERCENT) PER ANNUM AS PROVIDED IN ARTICLE X OF THE CONTRACT.

 

·

THIS LETTER OF GUARANTEE IS AVAILABLE (SUBJECT TO THE THIRD PARAGRAPH HEREOF) AGAINST THE BUYER’S FIRST WRITTEN DEMAND AND SIGNED STATEMENT CERTIFYING THAT THE BUYER’S DEMAND FOR REFUND HAS BEEN MADE IN CONFORMITY WITH ARTICLE X OF THE CONTRACT AND THE BUILDER HAS FAILED TO MAKE THE REFUND WITHIN THIRTY (30) DAYS AFTER THE BUYER’S DEMAND. REFUND SHALL BE MADE TO THE BUYER BY TELEGRAPHIC TRANSFER IN UNITED STATES DOLLARS.

 

·

IN CASE ANY REFUND IS MADE TO THE BUYER BY THE BUILDER OR BY US UNDER THIS LETTER OF GUARANTEE, OUR LIABILITY HEREUNDER SHALL BE AUTOMATICALLY REDUCED BY THE AMOUNT SUCH REFUND.

 

·

IT IS HEREBY UNDERSTOOD THAT PAYMENT OF ANY INTEREST PROVIDED HEREIN IS BY WAY OF LIQUIDATED DAMAGES DUE TO CANCELLATION OF THE CONTRACT AND NOT BY WAY OF COMPENSATION FOR USE OF MONEY.

 

·

NOTWITHSTANDING THE PROVISIONS HEREINABOVE, IN THE EVENT THAT WITHIN THIRTY (30) DAYS FROM THE DATE OF YOUR CLAIM TO THE BUILDER REFERRED TO ABOVE, WE RECEIVE NOTIFICATION FROM YOU OR THE BUILDER ACCOMPANIED BY WRITTEN CONFIRMATION TO THE EFFECT THAT YOUR CLAIM TO CANCEL THE CONTRACT OR YOUR CLAIM FOR REFUNDMENT THEREUNDER HAS BEEN DISPUTED AND REFERRED TO ARBITRATION IN ACCORDANCE WITH THE PROVISIONS OF THE CONTRACT, WE SHALL UNDER THIS GUARANTEE, REFUND TO YOU THE SUM ADJUDGED TO BE DUE TO YOU BY THE BUILDER PURSUANT TO THE AWARD MADE UNDER SUCH ARBITRATION IMMEDIATELY UPON RECEIPT FROM YOU OF A DEMAND FOR THE SUMS SO ADJUDGED AND A COPY OF THE AWARD.

 

·

THIS LETTER OF GUARANTEE SHALL BECOME NULL AND VOID UPON RECEIPT BY THE BUYER OF THE SUM GUARANTEED HEREBY OR UPON ACCEPTANCE BY THE BUYER OF THE DELIVERY OF THE VESSEL IN ACCORDANCE WITH THE TERMS OF THE CONTRACT OR RESCISSION OR TERMINATION OF THE CONTRACT DUE TO THE BUYER’S DEFAULT IN ACCORDANCE WITH THE CONTRACT AND, IN ANY CASE, THIS LETTER OF GUARANTEE SHALL BE RETURNED TO US.

 

·

THIS LETTER OF GUARANTEE IS ASSIGNABLE UPON OUR RECEIPT OF YOUR PRIOR WRITTEN NOTICE AND VALID FROM THE DATE OF THIS LETTER OF GUARANTEE UNTIL SUCH TIME AS THE VESSEL IS DELIVERED BY THE BUILDER TO THE BUYER IN ACCORDANCE WITH THE PROVISIONS OF THE CONTRACT.

 

·

THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF ENGLAND AND THE UNDERSIGNED HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF ENGLAND.

 

·

VERY TRULY YOURS,

 

·

	
FOR AND ON BEHALF OF
    
	
KOREA DEVELOPMENT BANK
    
	
BY
    
	
NAME
    	
:
    	
WOON KI, BAEK
    
	
TITLE
    	
:
    	
GENERAL MANAGER
    

{5: {CHK:F699AC6B9FBB}}

 

PRT NO SGRRC2Q:69139 BY SGR OPR SYS Apr 22, 2014 AT 1:28:46 PM

END OF MESSAGE

 

2

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