Document:

Exhibit 4.2

      Execution Version

      	
              USD 315,000,000 SENIOR SECURED TERM LOAN FACILITY AGREEMENT

            
	 
	
              dated 20 December, 2017

            
	 
	
              for

            
	 
	
              FLEX LNG ENDEAVOUR LIMITED, FLEX LNG
                    ENTERPRISE LIMITED and

                  FLEX LNG RANGER LIMITED

                  as Initial Borrowers

            
	 
	
              FLEX LNG FLEET LIMITED and FLEX LNG
                    LTD.

                  as Guarantors

            
	 
	
              arranged by

            
	 
	
              ABN AMRO BANK N.V.

                  as Bookrunner, co-ordinator and Mandated Lead Arranger

            
	 
	
              DNB BANK ASA and SKANDINAVISKA
                    ENSKILDA BANKEN AB (PUBL)

                  as Mandated Lead Arrangers

            
	 
	
              CREDIT SUISSE AG, NIBC BANK N.V. and
                    SPAREBANK 1 SR-BANK ASA

                  as Lead Arrangers

            
	 
	
              ABN AMRO BANK N.V., DNB BANK ASA,
                    SKANDINAVISKA ENSKILDA BANKEN AB (PUBL), CREDIT SUISSE AG, NIBC BANK N.V. and SPAREBANK 1 SR-BANK ASA

                  as Swap Providers

            
	 
	
              THE FINANCIAL INSTITUTIONS LISTED IN
                    SCHEDULE 1

                  as Original Lenders

            
	 
	
              with

            
	 
	
              ABN AMRO BANK N.V.

                  acting as Facility Agent and Security Agent

            
	 
	 
	 
	
              

            

      
        

        
          

      

      

      

      TABLE OF CONTENTS

      	
              1

            	
              DEFINITIONS AND INTERPRETATION

            	
              4

            
	 	 	 
	
              2

            	
              THE FACILITY

            	
              21

            
	 	 	 
	
              3

            	
              PURPOSE

            	
              23

            
	 	 	 
	
              4

            	
              CONDITIONS PRECEDENT

            	
              24

            
	 	 	 
	
              5

            	
              DRAWDOWN

            	
              25

            
	 	 	 
	
              6

            	
              SUBSTITUTION

            	
              26

            
	 	 	 
	
              7

            	
              REPAYMENT AND REDUCTION

            	
              28

            
	 	 	 
	
              8

            	
              ILLEGALITY, VOLUNTARY PREPAYMENT AND CANCELLATION

            	
              28

            
	 	 	 
	
              9

            	
              MANDATORY PREPAYMENT

            	
              29

            
	 	 	 
	
              10

            	
              RESTRICTIONS

            	
              31

            
	 	 	 
	
              11

            	
              INTEREST

            	
              32

            
	 	 	 
	
              12

            	
              INTEREST PERIODS

            	
              32

            
	 	 	 
	
              13

            	
              CHANGES TO THE CALCULATION OF INTEREST

            	
              33

            
	 	 	 
	
              14

            	
              FEES

            	
              34

            
	 	 	 
	
              15

            	
              TAX GROSS UP AND INDEMNITIES

            	
              35

            
	 	 	 
	
              16

            	
              INCREASED COSTS

            	
              37

            
	 	 	 
	
              17

            	
              OTHER INDEMNITIES

            	
              39

            
	 	 	 
	
              18

            	
              MITIGATION BY THE LENDERS

            	
              41

            
	 	 	 
	
              19

            	
              COSTS AND EXPENSES

            	
              41

            
	 	 	 
	
              20

            	
              ON-DEMAND GUARANTEE AND INDEMNITY

            	
              42

            
	 	 	 
	
              21

            	
              SECURITY

            	
              45

            
	 	 	 
	
              22

            	
              REPRESENTATIONS

            	
              46

            
	 	 	 
	
              23

            	
              INFORMATION UNDERTAKINGS

            	
              51

            
	 	 	 
	
              24

            	
              FINANCIAL COVENANTS

            	
              54

            
	 	 	 
	
              25

            	
              GENERAL UNDERTAKINGS

            	
              56

            
	 	 	 
	
              26

            	
              VESSEL UNDERTAKINGS

            	
              62

            
	 	 	 
	
              27

            	
              EVENTS OF DEFAULT

            	
              67

            
	 	 	 
	
              28

            	
              CHANGES TO THE LENDERS

            	
              70

            

      

      

      
        

        2 | 123

        
          

      

      

      

      	
              29

            	
              CHANGES TO THE OBLIGORS

            	
              74

            
	 	 	 
	
              30

            	
              ROLE OF THE FACILITY AGENT, SECURITY AGENT, THE ARRANGERS AND OTHERS

            	
              74

            
	 	 	 
	
              31

            	
              SHARING AMONG THE FINANCE PARTIES

            	
              86

            
	 	 	 
	
              32

            	
              PAYMENT MECHANICS

            	
              87

            
	 	 	 
	
              33

            	
              NOTICES

            	
              89

            
	 	 	 
	
              34

            	
              CALCULATIONS AND CERTIFICATES

            	
              91

            
	 	 	 
	
              35

            	
              PARTIAL INVALIDITY

            	
              92

            
	 	 	 
	
              36

            	
              REMEDIES AND WAIVERS

            	
              92

            
	 	 	 
	
              37

            	
              AMENDMENTS AND WAIVERS

            	
              92

            
	 	 	 
	
              38

            	
              COUNTERPARTS

            	
              93

            
	 	 	 
	
              39

            	
              CONTRACTUAL RECOGNITION OF BAIL-IN

            	
              93

            
	 	 	 
	
              40

            	
              GOVERNING LAW

            	
              94

            
	 	 	 
	
              41

            	
              ENFORCEMENT

            	
              94

            
	 	 	 
	
              42

            	
              PROCESS AGENT

            	
              94

            

      

      

      	
              SCHEDULE 1 THE ORIGINAL LENDERS

            	
              99

            
	
              SCHEDULE 2 CONDITIONS PRECEDENT

            	
              100

            
	
              SCHEDULE 3 FORM OF REQUESTS AND NOTICES

            	
              109

            
	
              SCHEDULE 4 FORM OF TRANSFER CERTIFICATE

            	
              111

            
	
              SCHEDULE 5 FORM OF COMPLIANCE CERTIFICATE

            	
              113

            
	
              SCHEDULE 6 FORM OF SUBSTITUTION LETTER

            	
              118

            
	
              SCHEDULE 7 REPAYMENT SCHEDULE

            	
              120

            
	
              SCHEDULE 8 FORM OF SUBSTITUTION CONFIRMATION LETTER

            	
              121

            
	
              SCHEDULE 9 LIST OF COLLATERAL VESSELS

            	
              122

            
	
              SCHEDULE 10 LIST OF OPERATING ACCOUNTS

            	
              123

            

      

      

      
        

        3 | 123

        
          

      

      

      

      THIS AGREEMENT (the

          "Agreement") is dated 20 December, 2017 and made between:

      
        
          	(1)	
                  FLEX LNG ENDEAVOUR LIMITED, a corporation
                      incorporated in the Republic of the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 as initial borrower;

                

        

      

      
        
          	(2)	
                  FLEX LNG ENTERPRISE LIMITED, a corporation
                      incorporated in the Republic of The Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 as initial borrower;

                

        

      

      
        
          	(3)	
                  FLEX LNG RANGER LIMITED, a corporation incorporated
                      in the Republic of The Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 as initial borrower;

                

        

      

      
        
          	(4)	
                  FLEX LNG FLEET LIMITED, a company incorporated and
                      existing under the laws of Bermuda whose registered office is at Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, Bermuda (the "Intermediate

                        Parent");

                

        

      

      
        
          	(5)	
                  FLEX LNG LTD., a company incorporated and existing
                      under the laws of Bermuda whose registered office is at Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, Bermuda (the "Ultimate Parent"
                      and together with the Intermediate Parent, the "Guarantors" and each a "Guarantor");

                

        

      

      
        
          	(6)	
                  THE FINANCIAL INSTITUTIONS listed in Schedule 1 (The Original Lenders) as lenders (the "Original

                        Lenders");

                

        

      

      
        
          	(7)	
                  ABN AMRO BANK N.V. as bookrunner, co-ordinator and
                      mandated lead arranger;

                

        

      

      
        
          	(8)	
                  DNB BANK ASA and SKANDINAVISKA ENSKILDA BANKEN AB (PUBL) as

                      mandated lead arrangers;

                

        

      

      
        
          	(9)	
                  CREDIT SUISSE AG, NIBC BANK N.V. and SPAREBANK 1 SR-BANK ASA as lead arrangers (and together with the entities referred to in (7) and (8) above, each an "Arranger" and jointly the "Arrangers");

                

        

      

      
        
          	(10)	
                  ABN AMRO BANK N.V., DNB BANK ASA, SKANDINAVISKA ENSKILDA
                        BANKEN AB (PUBL), CREDIT SUISSE AG, NIBC BANK N.V. and SPAREBANK 1 SR-BANK ASA as swap providers (each a "Swap Provider" and jointly the "Swap Providers"); and

                

        

      

      
        
          	(11)	
                  ABN AMRO BANK N.V. as facility agent of the other
                      Finance Parties (the "Facility Agent") and as security agent of the other Finance Parties (the "Security Agent").

                

        

      

      IT IS AGREED as
          follows:

      SECTION 1

      INTERPRETATION

      
        
          	1	
                  DEFINITIONS AND INTERPRETATION

                

        

      

      
        
          	1.1	
                  Definitions

                

        

      

      
        

        4 | 123

        
          

      

      

      

      In this Agreement:

      "Acceptable Charter
            Agreement" means a charter contract with a duration of minimum five (5) years, on terms and with a reputable third party charterer acceptable to all Lenders.

      "Account Bank"
          means DNB Bank ASA.

      "Account Pledge"
          means a first priority account pledge in favour of the Security Agent (on behalf of the Finance Parties) over the Operating Accounts of the Borrowers, to be governed by Norwegian law and in form and substance acceptable to the Security Agent.

      "Affiliate" means, in relation to any person, a Subsidiary of that person or a
          Holding Company of that person or any other Subsidiary of that Holding Company. For the purpose of ABN AMRO Bank N.V., "Affiliate" shall exclude the State of the Netherlands and any of its Subsidiaries other than ABN AMRO Bank N.V., but shall
          include any entity that acquires the business of ABN AMRO Bank N.V. to which the Dutch State is entitled.

      "Approved Shipbrokers"
          means any of Fearnleys, Clarkssons Platou, Nordic Shipping, Affinity, Lorentzen Stemoco, Simpson Spence Young or such other independent and internationally reputable broker acceptable to the Facility Agent.

      "Approved Ship
            Registry" means the ship registry of Marshall Islands, Liberia or such other ship registry as approved in writing by all Lenders.

      "Approved
            Classification Society" means DNV GL, Lloyds Register, American Bureau of Shipping (ABS), Bureau Veritas or such other IACS classification society acceptable to all Lenders.

      "Assignment of
            Earnings and Charterparties" means a first priority assignment in favour of the Security Agent (on behalf of the Finance Parties) of any of the Borrowers' rights, titles and interests to any Earnings under any charterparty for any
          Collateral Vessel with a term exceeding twelve (12) months, to be in form and substance acceptable to the Security Agent.

      "Assignment of Hedging
            Claims" means a first priority assignment in favour of the Security Agent (on behalf of the Finance Parties) of each Borrower's rights, titles and interests under any Hedging Agreements related to this Facility, to be in form and
          substance acceptable to the Security Agent.

      "Assignment of
            Insurances" means a first priority assignment in favour of the Security Agent (on behalf of the Finance Parties) of the Insurances relating to each Collateral Vessel, to be in form and substance acceptable to the Security Agent.

      "Assignment of
            Intercompany Loans" means a first priority assignment of the claims of any Guarantor or, if applicable, any Borrower or any other Affiliate, under any loan from any Guarantor or, if applicable, from any other Borrower, in favour of the
          Security Agent (on behalf of the Finance Parties) to be in form and substance acceptable to the Security Agent and to include a statement of subordination, whereby any Guarantor or, if applicable, any other Borrower or Affiliate, subordinates its
          claims against the relevant Borrower to the claims of the Finance Parties under the Finance Documents.

      "Authorisation"
          means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

      
        

        5 | 123

        
          

      

      

      

      "Availability Period"
          means the period from and including the date of this Agreement until 31 December 2018.

      "Available Commitment"
          means a Lender's Commitment minus:

      
        
          	(a)	
                  the amount of its participation in any outstanding Drawdowns; and

                

        

      

      
        
          	(b)	
                  in relation to any proposed Drawdown, the amount of its participation in any other Drawdowns that are due to be made on or before the proposed Drawdown
                      Date.

                

        

      

      "Available Facility"
          means the aggregate for the time being of each Lender's Available Commitment.

      "Bail-In Action"
          means the exercise of any Write-down and Conversion Powers.

      "Bail-In Legislation"
          means:

      
        
          	(a)	
                  in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for
                      the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

                

        

      

      
        
          	(b)	
                  in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion
                      Powers contained in that law or regulation.

                

        

      

      "Borrowers"
          means any or all of the Initial Borrowers and/or any Acceding Borrower having replaced an Initial Borrower as part of a Substitution.

      "Break Costs"
          means the amount (if any) by which:

      
        
          	(a)	
                  the interest (less Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in the Loan
                      or Unpaid Sum to the last day of the current Interest Period in respect of the Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;

                   

                    

                  exceeds:

                

        

      

      
        
          	(b)	
                  the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a
                      leading bank in the relevant interbank market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.

                

        

      

      "Business Day"
          means a day (other than a Saturday or Sunday) on which banks are open for general business in Oslo, New York, Stockholm, Zurich, Basel and Amsterdam.

      "Change of Control"
          means the occurrence of any of the following events:

      
        
          	(a)	
                  the Ultimate Parent ceases to directly own 100% of the shares in the Intermediate Parent;

                

        

      

      
        

        6 | 123

        
          

      

      

      

      
        
          	(b)	
                  the Intermediate Parent ceases to directly own 100% of the shares in each of the Borrowers, excluding in the event of a disposal in accordance with Clause
                      9.1 (Disposal or Total Loss);

                

        

      

      
        
          	(c)	
                  John Fredriksen Family through Geveran Trading Co. Ltd. ceases to directly own at least 25% of the shares and voting rights of the Ultimate Parent;

                

        

      

      
        
          	(d)	
                  John Fredriksen Family through GHL Greenwich Ltd. ceases to directly own 100% of the shares in Sterna Finance Ltd.; or

                

        

      

      
        
          	(e)	
                  without the prior written approval of the Majority Lenders, any individual person or more persons acting in concert (other than Geveran Trading Co. Ltd.)
                      have the right or the ability to control, either directly or indirectly, the affairs or composition of the majority of the board of directors (or equivalent) of the Ultimate Parent or becomes owners of 1/3 or more of the voting shares
                      of the Ultimate Parent.

                

        

      

      "Collateral Vessel"
          means any or all of the Initial Vessels and/or, following completion of a Substitution, one or several of the applicable Substitution Vessels, always limited to a maximum of three Collateral Vessels at any time.

      "Commitment"
          means:

      
        
          	(a)	
                  in relation to an Original Lender, the amount set opposite its name in Schedule 1 (The Original Lenders) and the amount of any other Commitment transferred to it under this Agreement;

                

        

      

      
        
          	(b)	
                  in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement;

                

        

      

      to the extent not cancelled, reduced or transferred by it under this Agreement.

      "Compliance
            Certificate" means a certificate substantially in the form set out in Schedule 5 (Form of Compliance Certificate).

      "Default" means
          an Event of Default or any event or circumstance specified in Clause 27 (Events of Default) which would (with the expiry of a grace period,
          the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.

      "Delivery Date"
          means each of the dates when each Collateral Vessel is actually delivered from the applicable Yard to the relevant Borrower pursuant to the relevant Shipbuilding Contract.

      "Disruption Event"
          means either or both of:

      
        
          	(a)	
                  a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for
                      payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the
                      Parties; or

                    

                

        

      

      
        

        7 | 123

        
          

      

      

      

      
        
          	(b)	
                  the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party
                      preventing that, or any other Party:

                

        

      

      
        
          	

                	(i)	
                  from performing its payment obligations under the Finance Documents; or

                

        

      

      
        
          	

                	(ii)	
                  from communicating with other Parties in accordance with the terms of the Finance Documents,

                

        

      

      
        
          	

                	(iii)	
                  and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.

                

        

      

      "Drawdown"
          means the disbursement of a Loan, including a pre-positioning of the Pre-positioning Portion under each Tranche as described in Clause 3.1 (Purpose).

      "Drawdown Date"
          means the date, being a Business Day, specified in the Drawdown Request, on which the Borrowers wishes a Drawdown to be made, or (as the context requires) the date on which a Loan is actually made to the Borrowers.

      "Drawdown Request"
          means a notice substantially in the form set out in Part I of Schedule 3 (Requests and Notices).

      "Earnings"
          means all moneys whatsoever which are now, or later become, payable (actually or contingently) to any Obligor, and which arise out of the use of or operation of the Collateral Vessels, including (but not limited to):

      
        
          	(a)	
                  all freight and hire payable, including (without limitation) payments of any nature under any charter or agreement for the employment, use, possession,
                      management and/or operation of the Collateral Vessels;

                

        

      

      
        
          	(b)	
                  any claim under any guarantees related to freight and hire payable as a consequence of the operation of the Collateral Vessels;

                

        

      

      
        
          	(c)	
                  compensation payable in the event of any requisition of any of the Collateral Vessels or for the use of any of the Collateral Vessels by any government
                      authority or other competent authority;

                

        

      

      
        
          	(d)	
                  demurrage and retention money receivable in relation to any of the Collateral Vessels;

                

        

      

      
        
          	(e)	
                  all moneys which are at any time payable under the Insurances in respect of loss of earnings; and

                

        

      

      
        
          	(f)	
                  any other money whatsoever due or to become due from third parties or otherwise in relation to any of the Collateral Vessels.

                

        

      

      "EEA Member Country" means any member state of the European Union, Iceland, Liechtenstein and Norway.

      "Environmental
            Approval" means any permit, license, consent, approval and other authorisations and the filing of any notification, report or assessment required under any Environmental Law for the operation of the Collateral Vessels.

      
        

        8 | 123

        
          

      

      

      

      "Environmental Claim"
          means any claim, proceeding, enforcement or investigation by any party in respect of any Environmental Law or Environmental Approval.

      "Environmental Law"
          means any applicable law, regulation, convention or treaty in any jurisdiction in which any Obligor conducts business which relates to the pollution or protection of the environment or to the carriage of material which is capable of polluting the
          environment.

      "Equity Ratio"
          shall have the meaning given to it in Clause 24.1 (Construction and definitions).

      "EU Bail-In
            Legislation Schedule" means the document described as such and published by the Loan Market Association (or any successor person) from time to time.

      "Event of Default"
          means any event or circumstance specified as such in Clause 27 (Events of Default).

      "FA Act" means
          the Norwegian Act on Financial Agreements no. 46 of 25 June, 1999.

      "Facility"
          means the senior secured term loan facility made available under this Agreement as described in Clause 2.1 (The Facility).

      "Facility Amount"
          means the lower of:

      
        
          	(a)	
                  USD 315,000,000; or

                

        

      

      
        
          	(b)	
                  the aggregate of the Maximum Tranche Amount for each of the three Collateral Vessels,

                

        

      

      or, in each case, as this may be increased in accordance with Clause 2.2 (Accordion Increase Option).

      "Fair Market Value"
          means the fair market value of each Collateral Vessel in USD determined by calculating the arithmetic mean of minimum two independent valuations of each Collateral Vessel, obtained by the Borrowers from two Approved Shipbrokers. If the two
          valuations differ by a margin of more than ten (10) per cent., then a third Approved Shipbroker shall provide a calculation and the fair market value of the Collateral Vessel shall be the arithmetic mean of the three valuations. The valuations
          shall be in form and substance acceptable to the Facility Agent and at all times not be older than thirty (30) days, and shall be made on charter free basis without physical inspection of the Collateral Vessels and on the basis of a sale for
          prompt delivery for cash at arm's length on normal commercial terms as between a willing buyer and seller.

      "FATCA" means:

      
        
          	(a)	
                  sections 1471 to 1474 of the US Internal Revenue Code of 1986 (the "Code") or any associated regulations;

                

        

      

      
        
          	(b)	
                  any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in
                      either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

                

        

      

      
        

        9 | 123

        
          

      

      

      

      
        
          	(c)	
                  any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the US Internal Revenue
                      Service, the US government or any governmental or taxation authority in any other jurisdiction.

                

        

      

      "FATCA Application
            Date" means:

      
        
          	(a)	
                  in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments
                      from sources within the US), 1 July 2014;

                

        

      

      
        
          	(b)	
                  in relation to a "withholdable payment" described in section 1473(1)(A)(ii) of the Code (which relates to "gross proceeds" from the disposition of property
                      of a type that can produce interest from sources within the US), 1 January 2019; or

                

        

      

      
        
          	(c)	
                  in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2019,

                

        

      

      or, in each case, such other date from which such payment may become subject to a deduction or withholding required by
          FATCA as a result of any change in FATCA after the date of this Agreement.

      "FATCA Deduction"
          means a deduction or withholding from a payment under a Finance Document required by FATCA.

      "FATCA Exempt Party" means a Party that is entitled to receive payments free from any FATCA Deduction.

      "Fee Letters"
          means any letters from the Facility Agent and/or the Arrangers to the Borrowers regarding certain fees to be paid by the Borrowers in respect of this Agreement.

      "Final Maturity Date"
          means the date falling five (5) years from the date of Drawdown of the third Tranche, but in any event not later than 30 June 2023, or earlier in accordance with this Agreement.

      "Finance Document"
          means:

      
        
          	(a)	
                  this Agreement;

                

        

      

      
        
          	(b)	
                  any Accession Letter;

                

        

      

      
        
          	(c)	
                  any Compliance Certificate;

                

        

      

      
        
          	(d)	
                  any Fee Letter;

                

        

      

      
        
          	(e)	
                  other than in respect of Clauses 37 (Amendments and Waivers),

                      38 (Counterparts) and (in relation to any communications between the Borrowers and the Swap Providers) Clause 33 (Notices), each Hedging Agreement;

                

        

      

      
        
          	(f)	
                  a Drawdown Notice;

                

        

      

      
        
          	(g)	
                  a Selection Notice;

                

        

      

      
        
          	(h)	
                  the Security Documents;

                

        

      

      
        

        10 | 123

        
          

      

      

      

      
        
          	(i)	
                  the Subordination Statement;

                

        

      

      
        
          	(j)	
                  any Trust Agreements;

                

        

      

      
        
          	(k)	
                  any other document (whether creating Security or not) which is executed at any time by any of the Obligors or any other person as security in favour of, or
                      to establish any form of subordination to, the Finance Parties under this Agreement or any of the other documents referred to herein or therein and any such other document designated as "Finance Document" by the Facility Agent and the Borrowers.

                

        

      

      "Finance Party"
          means any or all of the Lenders, the Arrangers, the Swap Providers, the Security Agent and the Facility Agent.

      "Financial Close"
          means the date on which all the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) have been provided in form
          and substance satisfactory to the Facility Agent.

      "Financial
            Indebtedness" means any indebtedness for or in respect of:

      
        
          	(a)	
                  moneys borrowed;

                

        

      

      
        
          	(b)	
                  any amount raised by acceptance under any acceptance credit facility;

                

        

      

      
        
          	(c)	
                  any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

                

        

      

      
        
          	(d)	
                  the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with the IFRS, be treated as a finance or capital
                      lease;

                

        

      

      
        
          	(e)	
                  receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

                

        

      

      
        
          	(f)	
                  any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the
                      value of any derivative transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that derivative transaction, that amount) shall be taken into account);

                

        

      

      
        
          	(g)	
                  any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or
                      financial institution;

                

        

      

      
        
          	(h)	
                  any amount of any liability under a deferred purchase agreement if (i) one of the primary reasons behind entering into the agreement is to finance the
                      acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 60 days after the date of supply;

                

        

      

      
        

        11 | 123

        
          

      

      

      

      
        
          	(i)	
                  any amount raised under any other transaction (including any forward sale or purchase, sale and sale back or sale and leaseback agreement) having the
                      commercial effect of a borrowing or otherwise classified as borrowings under IFRS; and

                

        

      

      
        
          	(j)	
                  (without double-counting) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) – (i)
                      above.

                

        

      

      "Group" means
          the Obligors and their Subsidiaries and any other entities required to be consolidated into any of their accounts and subsidiary undertakings under applicable law and IFRS.

      "Group Company"
          means a member of the Group, however, excluding for the purpose of Clause 27 (Events of Default) any Group Company that:

      
        
          	(a)	
                  is not an Obligor; and

                

        

      

      
        
          	(b)	
                  that no Obligor has any actual or contingent liability for the obligations or liabilities of such Group Company (other than by way of Security over the
                      shares in such Group Company or intra-group claims against such Group Company)..

                

        

      

      "Guarantee"
          means the guarantee and indemnity (in Norwegian: "påkravsgaranti") granted by each of the Guarantors pursuant to Clause 20 (On-demand Guarantee and Indemnity).

      "Hedging Agreement"
          means the ISDA 2002 master agreement (or any other swap agreement), and any confirmation and schedule entered into or to be entered into by any Borrower and any Swap Provider in accordance with Clause 25.11 (Hedging arrangements).

      "Holding Company"
          means any company which:

      
        
          	(a)	
                  has direct or indirect control; or

                

        

      

      
        
          	(b)	
                  owns directly or indirectly more than fifty (50) per cent. (votes and capital), of another company.

                

        

      

      "IFRS" means
          international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.

      "Initial Borrower"
          means any or all, as the case may be, of:

      
        
          	(a)	
                  FLEX LNG ENDEAVOUR LIMITED;

                

        

      

      
        
          	(b)	
                  FLEX LNG ENTERPRISE LIMITED; and/or

                

        

      

      
        
          	(c)	
                  FLEX LNG RANGER LIMITED.

                

        

      

      "Initial Vessel"
          means any or all of the vessels listed as "Initial Vessels" in Schedule 9 (List of Collateral Vessels).

      "Insurances"
          means the insurances from time to time taken out by or on behalf of any Obligor in respect of the Collateral Vessels, including those entered into in order to comply with Clause 26.1 (Vessel Insurances).

      
        

        12 | 123

        
          

      

      

      

      "Interest Payment Date"
          means the last Business Day of each Interest Period.

      "Interest Period"
          means, in relation to a Loan, each of the periods determined in accordance with Clause 12 (Interest Periods), and, in relation to an Unpaid
          Sum, each period determined in accordance with Clause 11.3 (Default Interest).

      "Interpolated Screen
            Rate" means, in relation to LIBOR for any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

      
        
          	(a)	
                  the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Loan; and

                

        

      

      
        
          	(b)	
                  the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan, each as of 12
                      noon on the Quotation Day for USD.

                

        

      

      "Intragroup
            Indebtedness" shall have the meaning given to it in Clause 25.15 (Financial support).

      "Inventory of
            Hazardous Material" means a statement of compliance issued by the relevant Yard which includes a list of any and all materials known to be potentially hazardous utilised in the construction of that Collateral Vessel (also referred to as
          a List of Hazardous Materials).

      "ISM Code"
          means the International Management Code for Safe Operations of Ships and for Pollution Prevention, as adopted by the International Maritime Organisation.

      "ISPS Code"
          means the International Ship and Port Facility Security Code, as adopted by the International Maritime Organisation.

      "John Fredriksen
            Family" means Mr. John Fredriksen, his direct lineal descendants, the personal estate of any of them and/or any trust created for the benefit of any of the aforementioned persons and their estates.

      "Lender" means:

      
        
          	(a)	
                  any Original Lender; and

                

        

      

      
        
          	(b)	
                  any entity which has become a Party as a Lender in accordance with Clause 28 (Changes to the Lenders), which in each case has not ceased to be a Lender in accordance with the terms of this Agreement.

                

        

      

      "LIBOR" means,
          in relation to any Loan:

      
        
          	(a)	
                  the applicable Screen Rate; or

                

        

      

      
        
          	(b)	
                  (if no Screen Rate is available for the Interest Period of that Loan) the Interpolated Screen Rate for that Loan; or

                

        

      

      
        
          	(c)	
                  if:

                

        

      

      
        

        13 | 123

        
          

      

      

      

      
        
          	

                	(i)	
                  no Screen Rate is available for USD; or

                

        

      

      
        
          	

                	(ii)	
                  no Screen Rate is available for the Interest Period of that Loan and it is not possible to calculate an Interpolated Screen Rate for that Loan, the
                      Reference Bank Rate,

                

        

      

      as of 12 noon Amsterdam time on the Quotation Day for USD and for a period equal in length to the Interest Period of
          that Loan and, if any such rate is below zero, LIBOR will be deemed to be zero.

      "Liquidity"
          shall have the meaning given to it in Clause 24.1 (Construction and definitions).

      "Loan" means
          any loan to be made under this Agreement or the principal amount outstanding for the time being of that loan.

      "Majority Lenders"
          means

      
        
          	(a)	
                  until the Commitments have been reduced to zero, Lenders whose Commitments aggregate more than 66 2/3 per cent. of the Total Commitments or, if the
                      Commitments have been reduced to zero and no Loan is outstanding, aggregated more than 66 2/3 per cent. immediately prior to that reduction; or

                

        

      

      
        
          	(b)	
                  at any other time, Lenders whose participations in the Loans then outstanding aggregate more than 66 2/3 per cent of all the Loans then outstanding.

                

        

      

      "Management
            Agreement(s)" means any commercial, technical and/or operational management agreement entered into between any of the Borrowers and the Manager(s) regarding any of the Collateral Vessels, on terms and conditions acceptable to the
          Majority Lenders.

      "Manager"
          means:

      
        
          	(a)	
                  Bernhard Schulte Shipmanagement (Isle of Man) Limited; or

                

        

      

      
        
          	(b)	
                  any other management company acceptable to the Facility Agent.

                

        

      

      "Margin" means
          2.85 % p.a.

      "Marpol" means
          the International Convention for the Prevention of Pollution from Ships.

      "Material Adverse
            Effect" means in the reasonable opinion of the Majority Lenders a material adverse effect on:

      
        
          	(a)	
                  the business, operations, property or condition (financial or otherwise) or prospects of any Obligor or the Group taken as a whole; or

                

        

      

      
        
          	(b)	
                  the ability of any of the Obligors to perform any of their obligations under the Finance Documents; or

                

        

      

      
        
          	(c)	
                  the validity or enforceability of, or the effectiveness or ranking of any security granted or purported to be granted pursuant to any of the Finance
                      Documents or the rights or remedies of any Finance Party under any of the Finance Documents.

                

        

      

      
        

        14 | 123

        
          

      

      

      

      "Maximum Tranche
            Amount" means an amount equal to the lower of:

      
        
          	(a)	
                  50% of the Total Delivery Costs for the relevant Collateral Vessel to be delivered from the Yard at the applicable Delivery Date; or

                

        

      

      
        
          	(b)	
                  55% of the Fair Market Value of the applicable Collateral Vessel; or

                

        

      

      
        
          	(c)	
                  USD 105,000,000,

                

        

      

      in each case, as such amount may be increased in accordance with Clause 2.2 (Accordion Increase Option) and subject to such amount being decreased over time in accordance with Schedule 7 (Repayment Schedule).

      "Mortgage(s)"
          means any or all of the first priority or preferred, as applicable, cross collateralized ship mortgages and, if applicable, the declaration of pledges or deeds of covenants collateral thereto, in form and substance acceptable to the Security
          Agent and registered against each of the Collateral Vessels with the applicable Approved Ship Registry in a jurisdiction acceptable to the Facility Agent.

      "New Lender"
          has the meaning given to that term in Clause 28 (Changes to the Lenders).

      "Obligors"
          means the Guarantors and the Borrowers or any of them, as the case may be.

      "Operating Account(s)"
          means either or all, as the case may be, of the accounts held with the Account Bank and listed as such in Schedule 10 (List of Operating Accounts)
          of any Borrower into which all Earnings of the applicable Borrower from the Collateral Vessels are to be paid, and which are to be subject to an Account Pledge.

      "Original Financial
            Statements" means the audited financial statements for each Obligor (consolidated in respect of the Ultimate Parent), for the financial year ended 2016.

      "Party" means a
          party to this Agreement.

      "Pre-positioning
            Portion" means the part of the relevant Tranche to be used to finance the final instalment under the relevant Shipbuilding Contract.

      "Quotation Day" means, in relation to any period for which an interest rate is to be determined two (2) Business Days before the first day of that period.

      "Reference Banks" means ABN AMRO Bank N.V., Skandinaviska Enskilda Banken AB (PUBL) and DNB Bank ASA or such other banks as may be appointed by the Facility Agent.

      "Reference Bank Rate"
          means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility Agent at its request by the Reference Banks, as the rate at which the relevant Reference Bank could borrow funds in the applicable
          interbank market in the relevant currency and for the relevant period, were it to obtain interbank offers for deposits in that currency and for that period.

      "Reference Bank
            Quotation" means any quotation supplied to the Facility Agent by a Reference Bank.

      "Relevant Jurisdiction"
          means in relation to any Party:

      
        

        15 | 123

        
          

      

      

      

      
        
          	(a)	
                  its jurisdiction of incorporation;

                

        

      

      
        
          	(b)	
                  any jurisdiction where any asset subject to or intended to be subject to Security under a Security Document to be created by it is situated or registered,
                      as applicable;

                

        

      

      
        
          	(c)	
                  any jurisdiction where it conducts its business; and

                

        

      

      
        
          	(d)	
                  the jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it.

                

        

      

      "Repayment Date(s)"
          shall have the meaning given to it in Clause 7.1 (Repayment of the Loans).

      "Repeating
            Representations" means each of the representations set out in Clause 22.2 (Status) to Clause 22.5 (Power and Authority), Clause 22.8 (Governing law and enforcement)
          to Clause 22.12 (No misleading information), Clause 22.15 (No proceedings pending or threatened), Clause 22.17 (Environmental compliance), Clause 22.18 (Environmental claims) and Clause 22.23 (Restricted

            Persons).

      "Replacement Borrower"
          a single purpose company incorporated as a corporation in the Republic of the Marshall Islands or any other jurisdiction acceptable to the Facility Agent, being a direct owner of a Substitution Vessel.

      "Restricted Person"
          means a person that is:

      
        
          	(a)	
                  listed on any Sanctions List;

                

        

      

      
        
          	(b)	
                  located in, incorporated under the laws of, or owned or controlled by, or acting on behalf of, a person located in or organised under the laws of a country
                      or territory that is the target of country-wide or territory-wide Sanctions;

                

        

      

      
        
          	(c)	
                  otherwise a target of Sanctions (whether designated by name or by reason of being included in a class of person); or

                

        

      

      
        
          	(d)	
                  owned or controlled, or acting on behalf, at the direction or for the benefit of a person referred to in (a) and/or (b) above.

                

        

      

      "Resolution Authority"
          means any body which has authority to exercise any Write-down and Conversion Powers.

      "Sanctions"
          means any economic, trade or financial sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by any Sanctions Authority, to the extent applicable to any Obligors, any of their Subsidiaries, each members
          of the Group, any of their directors, officers and employees, or any Finance Party.

      "Sanction Authority" means:

      
        
          	(a)	
                  the Kingdom of Norway;

                

        

      

      
        
          	(b)	
                  the United States government;

                

        

      

      
        
          	(c)	
                  the United Nations;

                

        

      

      
        
          	(d)	
                  the United Kingdom;

                

        

      

      
        

        16 | 123

        
          

      

      

      

      
        
          	(e)	
                  the European Union or any of its member states;

                

        

      

      
        
          	(f)	
                  the Swiss Confederation

                

        

      

      
        
          	(g)	
                  any country to which any Obligor, or any other Group Company or any Affiliate of any of them is bound; or

                

        

      

      
        
          	(h)	
                  the respective governmental institutions and agencies of any of the foregoing, including without limitation, the Office of Foreign Assets Control of the US
                      Department of Treasury ("OFAC"), the United States Department of State, and Her Majesty's Treasury ("HMT").

                

        

      

      "Sanctions List"
          means the "Specially Designated Nationals and Blocked Persons" list issued by OFAC, the Consolidated List of Financial Sanctions Targets and Investment Ban List issued by HMT, or any similar list issued or maintained or made public by any
          Sanctions Authority, each as amended, supplemented or substituted from time to time.

      "Screen Rate"
          means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for USD for the relevant period displayed on pages LIBOR01 or LIBOR02 of the
          Reuters screen (or any replacement Reuters page which displays that rate, or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters. If such page or service ceases to be
          available, the Facility Agent may specify another page or service displaying the relevant rate after consultation with the Ultimate Parent.

      "Security"
          means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

      "Security Documents"
          means each of the documents described in Clause 21 (Security), entered into or to be entered into as Security for the obligations of the
          Obligors under the Finance Documents.

      "Selection Notice"
          means a notice substantially in the form set out in Part II of Schedule 3 (Requests and Notices) given in accordance with Clause 12 (Interest Periods) in relation to the Loan.

      "Share Pledges"
          means first priority pledges in favour of the Security Agent (on behalf of the Finance Parties) to be created over all shares in the Borrowers pursuant to one or several share pledge agreements in form and substance acceptable to the Security
          Agent, to be entered into between the Security Agent and the Intermediate Parent.

      "Shipbuilding
            Contracts" means any or all, as the case may be, of the shipbuilding contracts entered into between the applicable Borrower and the applicable Yard regarding the construction of the Collateral Vessels.

      "Sterna RCF"
          means the revolving credit facility currently in the amount of USD 270,000,000 made available to the Intermediate Parent (as borrower) by Sterna Finance Ltd. (as lender) pursuant to a facility agreement dated 7 March 2017 as amended from time to
          time.

      
        

        17 | 123

        
          

      

      

      

      "Subordination
            Statement" means a subordination statement in form and substance acceptable to all Lenders, to be entered into between Sterna Finance Ltd. (as lender under the Sterna RCF) and the Facility Agent (on behalf of the Finance Parties),
          pursuant to which Sterna Finance Ltd. irrevocably fully subordinates its rights and claims against the Intermediate Parent to the rights and claims of the Finance Parties under the Finance Documents.

      "Subsidiary"
          means an entity of which a person:

      
        
          	(a)	
                  has direct or indirect control; or

                

        

      

      
        
          	(b)	
                  owns directly or indirectly more than fifty (50) per cent. (votes and capital).

                

        

      

      "Substitution"
          means the replacement of an Initial Borrower with a Replacement Borrower and the substitution of an Initial Vessel as Collateral Vessel by the Substitution Vessel owned by such Replacement Borrower, to be completed in accordance with Clause 6 (Substitution).

      "Substitution Date"
          means the date, confirmed in writing by the Facility Agent, upon which a Substitution is completed in accordance with Clause 6 (Substitution).

      "Substitution Letter"
          means a document substantially in the form set out in Schedule 6 (Form of Substitution Letter).

      "Substitution Period"
          means the period from and including the date of this Agreement until the earlier of:

      
        
          	(a)	
                  the date of completion of a third Substitution of an Initial Vessel;

                

        

      

      
        
          	(b)	
                  24 months from first Drawdown; or

                

        

      

      
        
          	(c)	
                  31 December, 2019.

                

        

      

      "Substitution Vessel"
          means any or all of the vessels listed as "Substitution Vessels" in Schedule 9 (List of Collateral Vessels).

      "Tax" means any
          tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).

      "Total Assets"
          shall have the meaning given to it in Clause 24.1 (Construction and definitions).

      "Total Commitments"
          means USD 315,000,000, being the aggregate of the Commitments, subject to increase under the (uncommitted) accordion increase option in Clause 2.2 (Accordion

            Increase Option).

      "Total Delivery Costs"
          means the aggregate of:

      
        
          	(a)	
                  the purchase price for each Collateral Vessel under the relevant Shipbuilding Contract; and

                

        

      

      
        
          	(b)	
                  other costs related to the construction of the applicable Collateral Vessels (supervision costs, commissioning, positioning, cool-down, spares, stores,
                      mobilisation, financing costs, legal costs etc.).

                

        

      

      
        

        18 | 123

        
          

      

      

      

      "Total Equity"
          shall have the meaning given to it in Clause 24.1 (Construction and definitions).

      "Total Loss"
          means:

      
        
          	(a)	
                  actual, constructive, agreed, arranged or other total loss of any Collateral Vessel;

                

        

      

      
        
          	(b)	
                  any hijacking, theft, act of piracy, capture, or seizure, unless the Collateral Vessel is released and restored to the applicable Borrower from such
                      hijacking, theft, act of piracy, capture or seizure within three (3) months from the date it took place;

                

        

      

      
        
          	(c)	
                  any confiscation, expropriation, requisition or acquisition of any Collateral Vessel, whether for full consideration, a consideration less than its proper
                      value, a nominal consideration or without any consideration, which is effected by any government or by persons acting or purporting to act on behalf of the government, unless the applicable Collateral Vessel is released and restored
                      to the applicable Borrower from such confiscation, expropriation, requisition or acquisition within three (3) months from the date it took place.

                

        

      

      "Total Loss Date"
          means:

      
        
          	(a)	
                  in the case of an actual total loss of any Collateral Vessel, the date on which it occurred or, if that is unknown, the date when the Collateral Vessel was
                      last heard of;

                

        

      

      
        
          	(b)	
                  in the case of a constructive, compromised, agreed or arranged total loss of any Collateral Vessel, the earlier of: (i) the date on which a notice of
                      abandonment is given to the insurers; and (ii) the date of any compromise, arrangement or agreement made by or on behalf of the applicable Borrower with the Collateral Vessel's insurers in which the insurers agree to treat the
                      applicable Collateral Vessel as a total loss; and

                

        

      

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

                

        

      

      "Tranche"
          means any of the three term loans to be made available to the Borrowers by the Lenders under this Agreement, as described in Clause 2.1 (The Facility),

          each in the amount of up to the Maximum Tranche Amount applicable to the relevant Collateral Vessel, or the principal amount outstanding for the time being of that loan, and "Tranches" means all of them.

      "Transaction

            Documents" means any Management Agreement, any subordination statement issued by any Manager in favour of the Facility Agent and/or Security Agent, the Sterna RCF, any Shipbuilding Contract and any Acceptable Charter Agreement, and if
          applicable any memorandum of agreements.

      "Trust

            Agreement" means:

      
        
          	(a)	
                  any vessel trust agreement entered into from time to time between the Facility Agent and the Security Agent (as mortgagee) in respect of each Collateral
                      Vessel and Mortgage, whereby the Security Agent agrees to hold the Collateral Vessels and/or the Mortgages on trust for the Finance Parties; and

                

        

      

      
        

        19 | 123

        
          

      

      

      

      
        
          	(b)	
                  any trust deed entered into from time to time between the Finance Parties and the Security Agent in respect of any English law governed Security Documents.

                

        

      

      "Unpaid Sum"
          means any sum due and payable but unpaid by any Borrower under the Finance Documents.

      "US" means
          United States of America.

      "USD" means
          United States Dollars.

      "VAT" means
          value added tax as provided for in the Value Added Tax Act 2009 and any other tax of a similar nature.

      "Working Capital"
          shall have the meaning given to it in Clause 24.1 (Construction and definitions).

      "Write-down and
            Conversion Powers" means:

      
        
          	(a)	
                  in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that
                      Bail-In Legislation in the EU Bail-In Legislation Schedule; and

                

        

      

      
        
          	(b)	
                  in relation to any other applicable Bail-In Legislation:

                

        

      

      
        
          	

                	(i)	
                  any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial
                      institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to
                      convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend
                      any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers; and

                

        

      

      
        
          	

                	(ii)	
                  any similar or analogous powers under that Bail-In Legislation.

                

        

      

      "Yard" means
          Daewoo Shipbuilding and Marine Engineering Co., Ltd. and/or, as the case may be, Samsung Heavy Industries Co., Ltd.

      
        
          	1.2	
                  Construction

                

        

      

      
        
          	

                	(a)	
                  Unless a contrary indication appears, a reference in this Agreement to:

                

        

      

      
        
          	

                	(i)	
                  the "Facility Agent", any "Borrower", any "Arranger", any "Swap Provider", any "Lender", any "Finance Party", any "Party" or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

                

        

      

      
        
          	

                	(ii)	
                  a "Finance Document" or any other agreement or
                      instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

                

        

      

      
        

        20 | 123

        
          

      

      

      

      
        
          	

                	(iii)	
                  a "person" includes any individual, firm, company,
                      corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality);

                

        

      

      
        
          	

                	(iv)	
                  a "regulation" includes any regulation, rule,
                      official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or
                      organisation; and

                

        

      

      
        
          	

                	(v)	
                  a provision of law is a reference to that provision as amended or re-enacted.

                

        

      

      
        
          	

                	(b)	
                  Section, Clause and Schedule headings are for ease of reference only.

                

        

      

      
        
          	

                	(c)	
                  Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has
                      the same meaning in that Finance Document or notice as in this Agreement.

                

        

      

      
        
          	

                	(d)	
                  A Default (other than an Event of Default) is "continuing"
                      if it has not been remedied or waived and an Event of Default is "continuing" if it has not been waived.

                

        

      

      
        
          	

                	(e)	
                  In the event the application of any of the terms of the Security Documents should be conflicting or inconsistent with the application of the terms of this
                      Agreement, the terms of this Agreement shall have precedence, provided that such application would not have a negative effect on the validity or enforceability of the Security created or contemplated to be created under the Security
                      Documents.

                

        

      

      
        
          	1.3	
                  The FA Act

                

        

      

      Each Obligor hereby agrees and accepts, to the extent permitted by law, that this Clause 1.3 (The FA Act) shall constitute a waiver of the provisions of the FA Act, and further agrees and accepts, to the extent permitted by law, that the
          provisions of the FA Act shall not apply to this Agreement or to the relationship between the Finance Parties and each Obligor.

      SECTION 2

      THE FACILITY

      
        
          	2	
                  THE FACILITY

                

        

      

      
        
          	2.1	
                  The Facility

                

        

      

      Subject to the terms of this Agreement, the Lenders agree to make available to the Borrowers a
          senior secured term loan facility up to the lower of the Total Commitments and the Facility Amount.

      
        
          	2.2	
                  Accordion Increase Option

                

        

      

      The Obligors may at any time during the first twenty-four (24) months after the first Drawdown
          Date, by giving no less than 60 days' prior written notice to the Facility Agent, request the Lenders (in their sole discretion) to consider to increase the amount of a Tranche and consequently the Facility Amount, subject to the following:

      
        

        21 | 123

        
          

      

      

      

      
        
          	

                	(a)	
                  the Borrowers providing a copy of an Acceptable Charter Agreement, in form and substance acceptable to the Lenders;

                

        

      

      
        
          	

                	(b)	
                  the written approval by each of the Lenders (in their sole discretion and it being understood that this accordion option is completely uncommitted, subject
                      to inter alia credit committee approvals etc.);

                

        

      

      
        
          	

                	(c)	
                  the Lenders subscribing for the full amount of the requested increase;

                

        

      

      
        
          	

                	(d)	
                  no Default is continuing or would occur as a result of any increase of the Commitments; and

                

        

      

      
        
          	

                	(e)	
                  the Parties implementing any increased Facility Amount and Commitments and the terms for such by way of an amendment agreement to this Agreement, in form
                      and substance acceptable to the Lenders.

                

        

      

      The Ultimate Parent has prior to this Agreement indicated its expectations in terms of leverage (in
          case of an increase) to be 60% (debt to Fair Market Value) for an Acceptable Charter Agreement with a term between five to ten years and 70% (debt to Fair Market Value) for an Acceptable Charter Agreement with a term beyond ten years.

      
        
          	2.3	
                  Potential introduction of a fourth Tranche

                

        

      

      
        
          	

                	(a)	
                  The Borrowers may request that the Lenders also make available a fourth Tranche for the purpose of financing a fourth Collateral Vessel and that the Total
                      Commitments be increased correspondingly, subject to the following:

                

        

      

      
        
          	

                	(i)	
                  the written approval by all Lenders;

                

        

      

      
        
          	

                	(ii)	
                  no Lender has any obligation to increase its Commitments;

                

        

      

      
        
          	

                	(iii)	
                  the new fourth Tranche and the increased Commitments will be made available on the terms and conditions of this Agreement;

                

        

      

      
        
          	

                	(iv)	
                  no Default is continuing or would occur as a result of any increase of the Commitments; and

                

        

      

      
        
          	

                	(v)	
                  any increase in the Total Commitments shall take effect on the date on which the conditions set out in paragraphs (a) and (b) are satisfied.

                

        

      

      
        
          	

                	(b)	
                  An increase in the Total Commitments and the availability of the fourth Tranche will only be effective on the execution by all Lenders and the Obligors of
                      an amendment agreement to this Agreement, implementing the fourth Tranche, the additional Borrower and Collateral Vessel and such other changes the Lenders request and setting out any additional requirement to be met in order for the
                      increase to become effective.

                

        

      

      
        
          	2.4	
                  Finance Parties' rights and obligations

                

        

      

      
        
          	

                	(a)	
                  The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance
                      Documents does not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

                

        

      

      
        

        22 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the
                      Finance Documents to a Finance Party from any Borrower shall be a separate and independent debt.

                

        

      

      
        
          	

                	(c)	
                  A Finance Party may separately enforce its rights under the Finance Documents.

                

        

      

      
        
          	2.5	
                  Obligor's agent

                

        

      

      
        
          	

                	(a)	
                  Each Obligor (other than the Ultimate Parent) by its execution of this Agreement irrevocably appoints the Ultimate Parent to act on its behalf as its agent
                      in relation to the Finance Documents and irrevocably by way of security authorises:

                

        

      

      
        
          	

                	(i)	
                  the Ultimate Parent on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices
                      and instructions, to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by the Ultimate Parent notwithstanding that they may affect the other Obligors,
                      without further reference to or the consent of the other Obligors; and

                

        

      

      
        
          	

                	(ii)	
                  each Finance Party to give any notice, demand or other communication to the Obligors pursuant to the Finance Documents to the Ultimate Parent, and in each
                      case the other Obligors shall be bound as though the Ultimate Parent itself had been given the notices and instructions or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant
                      notice, demand or other communication.

                

        

      

      
        
          	

                	(b)	
                  Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the
                      Ultimate Parent or given to the Ultimate Parent under any Finance Document on behalf of the other Obligors or in connection with any Finance Document (whether or not known to any of the other Obligors) shall be binding for all
                      purposes on the other Obligors as if it had expressly made, given or concurred with it. In the event of any conflict between any notices or other communications of the Ultimate Parent and the other Obligors, those of the Ultimate
                      Parent shall prevail.

                

        

      

      
        
          	2.6	
                  Joint and several liability

                

        

      

      The Borrowers are jointly and severally liable to the Finance Parties for any amount outstanding
          under this Agreement and the other Finance Documents.

      
        
          	3	
                  PURPOSE

                

        

      

      
        
          	3.1	
                  Purpose

                

        

      

      
        
          	

                	(a)	
                  Subject to the terms of this Agreement, the Lenders make available to the Borrowers, during the Availability Period, a senior secured term loan facility for
                      Drawdown in three Tranches in an aggregate principal amount of up to the lower of the Total Commitments or the Facility Amount, towards the financing of each Borrower's acquisition of the Initial Vessels from the Yard, including the
                      Pre-positioning Portion and, if applicable, reimbursement of the relevant parts of the Total Delivery Costs.

                

        

      

      
        

        23 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  Each Tranche shall be made available in an aggregate amount not exceeding the Maximum Tranche Amount applicable to the Initial Vessel and be made available
                      in up to two (2) Drawdowns:

                

        

      

      
        
          	

                	(i)	
                  the Pre-positioning Portion applicable to that Initial Vessel to be pre-positioned three (3) Business Days prior to the Delivery Date for the applicable
                      Initial Vessel with a bank and subject to such terms as approved by the Facility Agent; and

                

        

      

      
        
          	

                	(ii)	
                  the remaining part (if any) of the applicable Tranche to be made available to the applicable Borrower on the Delivery Date for that Initial Vessel.

                

        

      

      
        
          	3.2	
                  Monitoring

                

        

      

      No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to
          this Agreement.

      
        
          	4	
                  CONDITIONS PRECEDENT

                

        

      

      
        
          	4.1	
                  Initial conditions precedent

                

        

      

      
        
          	

                	(a)	
                  The Borrowers may not deliver a Drawdown Request, and no Finance Parties' obligations under this Agreement shall become effective, unless Financial Close
                      has occurred in accordance with Clause 4.3 (Financial Close) and the Facility Agent has received all of the documents and other
                      evidence listed in Part II of Schedule 2 (Conditions precedent) which shall be delivered three (3) Business Days prior to the
                      Drawdown Date (being the date of pre-positioning of the Pre-positioning Portion) at the latest, save for the documents listed under Part III of Schedule 2 (Conditions precedent) which shall be delivered at the Delivery Date at the latest and save for the documents listed under Part IV of Schedule 2 (Conditions subsequent) which shall be delivered in accordance with Clause 4.4 (Conditions

                        subsequent), each in form and substance satisfactory to the Facility Agent (acting on behalf of the Lenders). The Facility Agent shall notify the Borrowers and the Lenders promptly upon being so satisfied.

                

        

      

      
        
          	

                	(b)	
                  Other than to the extent that all Lenders notify the Facility Agent in writing to the contrary before the Facility Agent gives the notification described in
                      paragraph (a) above, the Lenders authorise (but do not require) the Facility Agent to give that notification. The Facility Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such
                      notification.

                

        

      

      
        
          	4.2	
                  Further conditions precedent

                

        

      

      Subject to Clause 4.1 (Initial conditions precedent), the Lenders will only be obliged to comply with Clause 5.3 (Lenders' participation),

          if on the date of a Drawdown Request and on the proposed Drawdown Date and Delivery Date:

      
        
          	

                	(a)	
                  no Default or potential Default having occurred; and

                

        

      

      
        
          	

                	(b)	
                  all the representations and warranties in Clause 22 (Representations)
                      or the Repeating Representations, as applicable, are true.

                

        

      

      
        

        24 | 123

        
          

      

      

      

      
        
          	4.3	
                  Financial Close

                

        

      

      If Financial Close has not occurred on or before 22 December 2017 or such later date as agreed by
          the Facility Agent: (a) except for this Clause, Clauses 14 (Fees), 17 (Other Indemnities), 19 (Costs and Expenses), 21.3 (Set-off), 32.4 (Partial payments), 32.5 (Set-Off by any Obligor), 40 (Governing Law) and 41 (Enforcement), all the provisions of this Agreement shall lapse and cease to have effect but (b) neither the lapsing of those provisions nor their ceasing to have effect
          shall affect any accrued rights of any Finance Party or accrued liabilities of the Obligors under the Finance Documents.

      
        
          	4.4	
                  Condition subsequent

                

        

      

      It is a condition subsequent for each Loan made available under this Agreement that the Facility
          Agent no later than the date falling five (5) Business Days after each Delivery Date has received all of the documents and other evidence listed in Part IV of Schedule 2 (Conditions precedent), all in form and substance satisfactory to the Facility Agent.

      SECTION 3

      DRAWDOWN AND SUBSTITUTION

      
        
          	5	
                  DRAWDOWN

                

        

      

      
        
          	5.1	
                  Delivery of a Drawdown Request

                

        

      

      The Borrowers, or the Ultimate Parent on behalf of the Borrowers, may utilise the Facility by
          delivery to the Facility Agent of a duly completed Drawdown Request not later than 12 noon Amsterdam time three (3) Business Days prior to a proposed Drawdown Date, unless a shorter notice period has been agreed by the Facility Agent (acting on
          behalf of the Lenders).

      
        
          	5.2	
                  Completion of a Drawdown Request

                

        

      

      A Drawdown Request is irrevocable and will not be regarded as having been duly completed unless:

      
        
          	

                	(a)	
                  it identifies the Collateral Vessel to which it relates;

                

        

      

      
        
          	

                	(b)	
                  the proposed Drawdown Date is a Business Day within the Availability Period;

                

        

      

      
        
          	

                	(c)	
                  the currency of the proposed Drawdown is USD;

                

        

      

      
        
          	

                	(d)	
                  up to six (6) Drawdowns may be requested under the Facility, two per Tranche (including the Pre-positioning Portion), unless otherwise permitted as a result
                      of Clause 9.1 (d);

                

        

      

      
        
          	

                	(e)	
                  the aggregate amount of any Drawdown requested on the proposed Drawdown Date and the amount of any Drawdown outstanding or previously requested under the
                      same Tranche (including any Pre-positioning Portion) is an amount not exceeding the lower of the applicable Maximum Tranche Amount and the Available Facility; and

                

        

      

      
        
          	

                	(f)	
                  the aggregate of all Drawdowns utilised and the amount of any Drawdown requested, does not exceed the Facility Amount.

                

        

      

      
        

        25 | 123

        
          

      

      

      

      
        
          	5.3	
                  Lenders' participation

                

        

      

      
        
          	

                	(a)	
                  Upon receipt of a Drawdown Request, the Facility Agent shall notify each Lender of the details of the requested Loan and the amount of each Lender's
                      participation in the relevant Loan.

                

        

      

      
        
          	

                	(b)	
                  If the conditions set out in this Agreement have been met, the Lenders shall, no later than 10:00 hours Amsterdam time on the relevant Drawdown Date, make
                      its participation in a Loan available to the Facility Agent for the account of the Borrowers in an amount equal to the proportion borne by its Commitment immediately prior to making the Loan.

                

        

      

      
        
          	5.4	
                  Pre-positioning of funds

                

        

      

      
        
          	

                	(a)	
                  The pre-positioning of the Pre-positioning Portion under each Tranche as described in Clause 3.1 (Purpose) shall constitute a Drawdown and the Borrowers shall at that time become indebted, as principal and direct obligor, to each Lender in an amount equal to that Lender's
                      participation in that Loan.

                

        

      

      
        
          	

                	(b)	
                  The terms of the pre-positioning are to be finally agreed between the Borrowers and the Facility Agent (acting on the instructions of all Lenders) and, for
                      the avoidance of doubt, each of the Obligors undertakes not to sign any protocol of delivery and acceptance under the Shipbuilding Contracts thereby, or otherwise, release the Pre-positioning Portion, unless and until the Facility
                      Agent has confirmed that the relevant conditions have been or (pursuant to agreed closing procedures) will be met in accordance with Clause 4.1 (Initial conditions precedent) paragraph (a).

                

        

      

      
        
          	6	
                  SUBSTITUTION

                

        

      

      
        
          	6.1	
                  Substitution

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall have the option during the Substitution Period to three (3) times complete a Substitution, subject to the terms and conditions set out
                      in this Clause 6 (Substitution).

                

        

      

      
        
          	

                	(b)	
                  A Substitution may only take place once the Facility Agent (on behalf of the Lenders) in its sole discretion is satisfied that:

                

        

      

      
        
          	

                	(i)	
                  the Majority Lenders have consented to the Substitution;

                

        

      

      
        
          	

                	(ii)	
                  no Default is continuing or would result from the proposed Substitution;

                

        

      

      
        
          	

                	(iii)	
                  no Material Adverse Effect would result from the proposed Substitution;

                

        

      

      
        
          	

                	(iv)	
                  the Repeating Representations to be made by each Obligor (including the Replacement Borrower) are true in all material respects;

                

        

      

      
        
          	

                	(v)	
                  the applicable Initial Borrower, the Ultimate Parent and the Replacement Borrower have delivered to the Facility Agent a duly completed and executed
                      Substitution Letter no less than six (6) months prior to the Substitution Date;

                

        

      

      
        

        26 | 123

        
          

      

      

      

      
        
          	

                	(vi)	
                  if the Tranche relating to the Collateral Vessel to be replaced has been increased in accordance with Clause 2.2 (Accordion Increase Option) and the Acceptable Charter Agreement having supported such increase will follow such vessel and not be continued with the Substitution Vessel,
                      the Borrowers shall prior to the Substitution Date prepay the Loans by an amount equal to the former increase of the Facility Amount, but reduced pro rata by any instalments paid since the increase of the Facility Amount and the
                      repayment schedule shall be amended to reflect the original repayment schedule in effect prior to any increase of such Tranche; and

                

        

      

      
        
          	

                	(vii)	
                  the Facility Agent has received all of the documents and other evidence listed in Part V (Conditions precedent to Substitution) of Schedule 2 (Conditions precedent and subsequent)
                      in form and substance satisfactory to it, including such other documents and evidence as listed in Part I to IV of this Schedule 2 as requested by the Facility Agent, including for the avoidance of any doubt, such Security to be
                      granted by the Replacement Borrower replacing the Security previously granted by the Initial Borrower being replaced.

                

        

      

      
        
          	6.2	
                  Effects of Substitution

                

        

      

      On the Substitution Date:

      
        
          	

                	(a)	
                  the Replacement Borrower shall accede to this Agreement as joint and several Borrower and become liable for the obligations of the Initial Borrower it
                      replaced, including, for the avoidance of doubt, maintaining the then outstanding amount under the respective Tranche and repayment profile, which will continue unchanged (save as a result of paragraph (b)(vi) of Clause 6.1);

                

        

      

      
        
          	

                	(b)	
                  the Initial Borrower (being replaced) shall be released from its obligations under each Finance Document (other than the Hedging Agreements, which
                      transactions thereunder shall, unless otherwise agreed between the Borrowers and the applicable Swap Provider, be terminated at the Initial Borrower's cost), as a Borrower and shall cease to be a Party to this Agreement;

                

        

      

      
        
          	

                	(i)	
                  all references to the terms "Borrowers", "Borrower", "Obligors" or "Obligor" shall include the Replacement Borrower; and

                

        

      

      
        
          	

                	(ii)	
                  all references to the terms "Collateral Vessel" or "Collateral Vessels" shall include the Substitution Vessel,

                   

                    

                  however, for the avoidance of doubt, any release of obligations and/or related Security will not be completed until corresponding obligations have been
                      assumed and Security has been established by the Replacement Borrower;

                

        

      

      
        
          	

                	(c)	
                  the Facility Agent shall notify the other Parties, substantially in the form set out in Schedule 8 (Form of Substitution Confirmation Letter) confirming the occurrence of a Substitution Date, promptly upon being satisfied that:

                

        

      

      
        
          	

                	(i)	
                  it has received (in form and substance satisfactory to it) all the documents and other evidence listed in paragraph (b) of Clause 6.1 (Substitution) above; and

                    

                

        

      

      
        

        27 | 123

        
          

      

      

      

      
        
          	

                	(ii)	
                  the Replacement Borrower has acceded to this Agreement as a Borrower.

                

        

      

      SECTION 4

      REPAYMENT, PREPAYMENT AND CANCELLATION

      
        
          	7	
                  REPAYMENT AND REDUCTION

                

        

      

      
        
          	7.1	
                  Repayment of the Loans

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall repay each Tranche in quarterly instalments in amounts as set out in the illustrative repayment schedule in Schedule 7 (Repayment Schedule), using an average repayment profile of 18 years (first eight instalments based on a twenty (20) years repayment
                      profile (i.e. full repayment to zero when the vessel turns 20 years of age) and remaining instalments based on a 17 years repayment profile).

                

        

      

      
        
          	

                	(b)	
                  The Facility Agent shall provide updated and final repayment schedules prior to the final Drawdown Date under each Tranche, reflecting the final amount of
                      each Tranche and the Drawdown Dates.

                

        

      

      
        
          	

                	(c)	
                  The first instalment under each Tranche is to be due on the date falling three (3) months after the applicable Drawdown Date (being the date which the
                      Pre-positioning Portion is pre-positioned) and thereafter instalments fall due on each date falling on three monthly intervals thereafter (collectively the "Repayment Dates").

                

        

      

      
        
          	

                	(d)	
                  The Loans shall be repaid in full at the Final Maturity Date, at which time any and all other amounts or obligations of the Obligors under the Finance
                      Documents are due in full.

                

        

      

      
        
          	

                	(e)	
                  The Borrowers may not re-borrow any part of the Facility which is repaid, other than as part of a Substitution following a prepayment in accordance with
                      paragraph (d) of Clause 9.1 (Disposal or Total Loss).

                

        

      

      
        
          	7.2	
                  Reductions

                

        

      

      The Maximum Tranche Amount available for Drawdown shall be reduced in accordance with Schedule 7 (Repayment Schedule) and may not at any time exceed the amount set out in column "Available amount" applicable for a Drawdown at the applicable
          time.

      
        
          	8	
                  ILLEGALITY, VOLUNTARY PREPAYMENT AND CANCELLATION

                

        

      

      
        
          	8.1	
                  Illegality

                

        

      

      If it becomes unlawful under any law, regulation, treaty or any directive of any monetary authority
          in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund, issue or maintain its participation in a Loan or if it becomes contrary to Sanctions to do the same:

      
        
          	

                	(a)	
                  that Lender, shall promptly notify the Facility Agent upon becoming aware of that event;

                

        

      

      
        
          	

                	(b)	
                  upon the Facility Agent notifying the Borrowers, each Available Commitment of that Lender will be immediately reduced to zero and cancelled; and

                    

                

        

      

      
        

        28 | 123

        
          

      

      

      

      
        
          	

                	(c)	
                  the Borrowers shall repay that Lender's participation in any Loan on the last day of the Interest Period for each Loan occurring after the Facility Agent
                      has notified the Borrowers or, if earlier, the date specified by the Lender in the notice delivered to the Facility Agent (being no earlier than the last day of any applicable grace period permitted by law (including any Sanctions))
                      and that Lender's corresponding Commitment(s) shall be cancelled in the amount of the participations repaid.

                

        

      

      
        
          	8.2	
                  Voluntary prepayment

                

        

      

      The Borrowers may prepay the whole or any part of the Facility (but if in part, in a minimum amount
          of USD 5,000,000 and in multiples of USD 1,000,000, or in such other amounts as the Facility Agent may from time to time agree) without penalty on any Interest Payment Date, if they give the Facility Agent not less than fifteen (15) Business
          Days' prior irrevocable notice.

      
        
          	8.3	
                  Voluntary cancellation

                

        

      

      The Borrowers may, if it gives the Facility Agent not less than ten (10) Business Days' (or such
          shorter period as the Facility Agent may agree) prior notice, cancel the whole or any part (being a minimum amount of USD 5,000,000 and in multiples of USD 1,000,000) of the Facility. Any cancellation under this Clause 8.3 shall reduce the
          Commitments under the Facility of the Lenders rateably.

      
        
          	8.4	
                  Right of repayment in relation to a single Lender

                

        

      

      
        
          	

                	(a)	
                  If:

                

        

      

      
        
          	

                	(i)	
                  any sum payable to any Lender by the Borrowers is required to be increased under paragraph (b) of Clause 15.1 (Tax gross-up); or

                

        

      

      
        
          	

                	(ii)	
                  any Lender claims indemnification from the Borrowers under Clause 15.2 (Tax indemnity) or Clause 16.1 (Increased costs),

                   

                    

                  the Borrowers may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Facility Agent notice of
                      its intention to procure the repayment of that Lender's participation in any Loan.

                

        

      

      
        
          	

                	(b)	
                  On receipt of a notice referred to in paragraph (a) above in relation to a Lender, the Commitment(s) of that Lender shall immediately be reduced to zero.

                

        

      

      
        
          	

                	(c)	
                  On the last day of the Interest Period which ends after the Borrowers have given notice under paragraph (a) above in relation to a Lender (or, if earlier,
                      the date specified by the Borrowers in that notice), the Borrowers shall repay that Lender's participation in any Loan together with all interest and other amounts accrued under the Finance Documents.

                

        

      

      
        
          	9	
                  MANDATORY PREPAYMENT

                

        

      

      
        
          	9.1	
                  Disposal or Total Loss

                

        

      

      
        
          	

                	(a)	
                  If a Collateral Vessel is sold or otherwise disposed of in whole or in part (either directly or indirectly through a disposal of shares in the applicable
                      vessel owning Borrower), or becomes a Total Loss, the Borrowers shall prepay the Tranche applicable to that Collateral Vessel (or Borrower, if by disposal of shares), together with all accrued interests, costs and fees related to such
                      Tranche.

                

        

      

      
        

        29 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  The amount due under paragraph (a) above shall become due and payable:

                

        

      

      
        
          	

                	(i)	
                  in case of a sale or disposal, on or before the earlier of:

                

        

      

      
        
          	

                	(A)	
                  the date the disposal proceeds have been received; or

                

        

      

      
        
          	

                	(B)	
                  the date on which the sale is completed by transfer of the title to the applicable Collateral Vessel (or Borrower) from the relevant Borrower (or
                      Intermediate Parent in case of a disposal of shares) to the buyer; or

                

        

      

      
        
          	

                	(ii)	
                  in the case of a Total Loss, on the earlier of:

                

        

      

      
        
          	

                	(A)	
                  the date falling ninety (90) days after the Total Loss Date; or

                

        

      

      
        
          	

                	(B)	
                  the date of receipt of the insurance proceeds or requisition compensation relating to such Total Loss; or

                

        

      

      
        
          	

                	(C)	
                  immediately after the completion of an expropriation or requisition of title, in the event of a Total Loss by way of expropriation or requisition for title
                      of the Collateral Vessel by any government or by persons acting or purporting to act on behalf of the government.

                

        

      

      
        
          	

                	(c)	
                  Following prepayment in accordance with the above paragraphs, and in case of a sale subject to closing procedure to be agreed between the Borrowers and the
                      Facility Agent (in its sole discretion), the Facility Agent shall be entitled to release (including taking any steps necessary to giving effect to such release) any Security Documents relating to the relevant Collateral Vessel and the
                      release of any relevant Borrower and the relevant Collateral Vessel sold or lost shall subsequently no longer be defined as a "Collateral Vessel" or included in the definition of "Collateral Vessels" under this Agreement.

                

        

      

      
        
          	

                	(d)	
                  Provided that the disposal (of Collateral Vessel or shares in vessel owning Borrower) or Total Loss of a Collateral Vessel, occurs within the Availability
                      Period, the Borrowers may redraw the applicable Tranche (subject to any reductions pursuant to Clause 7.2 (Reductions)) by making
                      a Drawdown in order to complete a Substitution of the Collateral Vessel having suffered a Total Loss or been disposed. Consequently, for the avoidance of doubt, commitment fees shall start to accrue in accordance with Clause 14.2 (Commitment fee) in respect of such Tranche for the remaining part of the Availability Period from the date of prepayment.

                

        

      

      
        
          	9.2	
                  Change of Control

                

        

      

      Upon the occurrence of a Change of Control, the Facility Agent (acting on the instructions of the
          Lenders) may by 60 days' prior written notice cancel the Total Commitments and demand prepayment of all Loans, whereupon the Total Commitments shall be automatically cancelled and all Loans and other amounts outstanding under the Finance
          Documents shall be prepaid within such 60 days' period.

      
        

        30 | 123

        
          

      

      

      

      
        
          	9.3	
                  Termination, cancellation or repudiation of Acceptable Charter Agreement

                

        

      

      In case the Facility Amount has been increased in accordance with Clause 2.2 (Accordion Increase Option) and the Acceptable Charter Agreement having supported such increase is subsequently terminated prior to its term, the
          Borrowers shall promptly upon termination of such Acceptable Charter Agreement prepay the Loans by an amount equal to the former increase of the Facility Amount, but reduced pro rata by any instalments paid since the increase of the Facility
          Amount.

      
        
          	10	
                  RESTRICTIONS

                

        

      

      
        
          	10.1	
                  Notices of Prepayment

                

        

      

      Any notice of prepayment, authorisation or other election given by any Party shall be irrevocable
          and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant prepayment is to be made and the amount of that prepayment.

      
        
          	10.2	
                  Application of funds, interest and other amounts

                

        

      

      
        
          	

                	(a)	
                  Any mandatory prepayment under this Agreement and any prepayment resulting from Clause 26.11 (Fair Market Value) shall be applied in inverse order of maturity against the remaining amortisations under the Facility pro rata between the Tranches.

                

        

      

      
        
          	

                	(b)	
                  Any voluntary prepayment made pursuant to this Agreement shall be applied against the remaining repayment instalments, including the balloons within the
                      Tranches subject to prepayment.

                

        

      

      
        
          	

                	(c)	
                  Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or
                      penalty.

                

        

      

      
        
          	10.3	
                  No reborrowing of the Facility

                

        

      

      The Borrowers may not re-borrow any part of the Facility, other than as set out in paragraph (d) of Clause 9.1 (Disposal or Total Loss) and no part of the
          Facility cancelled may be reinstated.

      
        
          	10.4	
                  Receipt of Notices

                

        

      

      If the Facility Agent receives a notice under Clause 8 (Illegality, voluntary prepayment and cancellation), it shall promptly forward a copy of that notice to either the Borrowers or the affected Lender, as appropriate.

      
        
          	10.5	
                  Prepayment elections

                

        

      

      The Facility Agent shall notify the Lenders as soon as possible of any proposed prepayment of any
          Loan under Clause 8.1 (Voluntary prepayment).

      
        
          	10.6	
                  Cancellation of Commitment

                

        

      

      Any unused Commitment shall be immediately cancelled at the end of the Availability Period.

      
        

        31 | 123

        
          

      

      

      

      SECTION 5

      COSTS OF UTILISATION

      
        
          	11	
                  INTEREST

                

        

      

      
        
          	11.1	
                  Calculation of Interest

                

        

      

      The rate of interest on any Loan for each Interest Period is the percentage rate per annum which is
          the aggregate of:

      
        
          	

                	(a)	
                  the Margin; and

                

        

      

      
        
          	

                	(b)	
                  LIBOR.

                

        

      

      
        
          	11.2	
                  Payment of interest

                

        

      

      The Borrowers shall pay accrued interest on any Loan on each Interest Payment Date (and if the
          Interest Period is longer than three (3) months, on the date falling at three (3) monthly intervals after the first day of the Interest Period).

      
        
          	11.3	
                  Default interest

                

        

      

      
        
          	

                	(a)	
                  If any Obligor fails to pay any amount payable by it under a Finance Document in accordance on its due date, interest shall accrue on the overdue amount as
                      well as any Loan from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is two (2) per cent. higher than the rate which would have been payable if the
                      overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Facility Agent (acting reasonably). Any interest
                      accruing under this Clause 11.3 shall be immediately payable by the Borrowers on demand by the Facility Agent.

                

        

      

      
        
          	

                	(b)	
                  Default interest (if unpaid) arising on overdue interest and any Loan will be compounded with the overdue interest at the end of each Interest Period
                      applicable to that overdue interest but will remain immediately due and payable on demand by the Facility Agent.

                

        

      

      
        
          	12	
                  INTEREST PERIODS

                

        

      

      
        
          	12.1	
                  Selection of Interest Periods

                

        

      

      
        
          	

                	(a)	
                  The Borrowers may select an Interest Period for a Loan in a Drawdown Request or (once borrowed) in a Selection Notice.

                

        

      

      
        
          	

                	(b)	
                  Each Selection Notice is irrevocable and must be delivered to the Facility Agent by the Borrowers not later than 10 a.m. Amsterdam time three (3) Business
                      Days prior to the beginning of the next Interest Period.

                

        

      

      
        
          	

                	(c)	
                  If the Borrowers fails to deliver a Selection Notice to the Facility Agent in accordance with paragraph (b) above, the relevant Interest Period will,
                      subject to paragraph (e) below, be three (3) months.

                

        

      

      
        

        32 | 123

        
          

      

      

      

      
        
          	

                	(d)	
                  Subject to this Clause 12 and to a maximum of three one (1) month interest periods being selected each year, the Borrowers may select an Interest Period of
                      one (1), three (3) or six (6) months or (subject always to availability of all Lenders) such other period as the Lenders and the Borrowers may agree in writing.

                

        

      

      
        
          	

                	(e)	
                  The first Interest Period shall commence on the Drawdown Date (being the date which the Pre-positioning Portion is pre-positioned), and each subsequent
                      Interest Period shall commence on the expiry of the preceding Interest Period.

                

        

      

      
        
          	

                	(f)	
                  The Interest Periods for any subsequent Drawdown shall each commence on the applicable Drawdown Date, but shall expire at the same time as any current
                      Interest Period, in order to consolidate the Interest Periods for all Tranches.

                

        

      

      
        
          	12.2	
                  Non-Business Days

                

        

      

      If an Interest Period would otherwise end on a day which is not a Business Day, that Interest
          Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

      
        
          	12.3	
                  No overrunning

                

        

      

      If an Interest Period would otherwise overrun the Final Maturity Date, it shall be shortened so
          that it ends on the Final Maturity Date.

      
        
          	13	
                  CHANGES TO THE CALCULATION OF INTEREST

                

        

      

      
        
          	13.1	
                  Absence of quotations

                

        

      

      Subject to Clause 13.2 (Market disruption), if the applicable LIBOR is to be determined by reference to the Reference Bank Quotation but a Reference Bank does not supply a quotation by 12 noon Amsterdam time on the Quotation Day, the
          applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

      
        
          	13.2	
                  Market disruption

                

        

      

      
        
          	

                	(a)	
                  If a Market Disruption Event occurs in relation to any Loan for any Interest Period, then the rate of interest on each Lender's share of any Loan for the
                      Interest Period shall be the percentage rate per annum which is the sum of:

                

        

      

      
        
          	

                	(i)	
                  the Margin; and

                

        

      

      
        
          	

                	(ii)	
                  the rate notified to the Facility Agent by that Lender as soon as practicable and in any event by close of business on the date falling two (2) Business
                      Days prior to the date on which interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in any Loan from whatever
                      source it may reasonably select.

                

        

      

      
        
          	

                	(b)	
                  In this Agreement, "Market Disruption Event" means:

                

        

      

      
        
          	

                	(i)	
                  at or about noon Amsterdam time on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference
                      Banks supplies a rate to the Facility Agent to determine LIBOR for the relevant Interest Period; or

                    

                

        

      

      
        

        33 | 123

        
          

      

      

      

      
        
          	

                	(ii)	
                  before close of business in Amsterdam on the Quotation Day for the relevant Interest Period, the Facility Agent receives notifications from a Lender or
                      Lenders that the cost to it of funding its participation in a Loan from whatever source it may reasonably select would be in excess of the applicable LIBOR.

                

        

      

      
        
          	13.3	
                  Alternative basis of interest or funding

                

        

      

      
        
          	

                	(a)	
                  If a Market Disruption Event occurs and the Facility Agent or the Borrowers so require, the Facility Agent and the Borrowers shall enter into negotiations
                      (for a period of not more than thirty (30) days) with a view to agreeing a substitute basis for determining the rate of interest.

                

        

      

      
        
          	

                	(b)	
                  Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Borrowers, be binding on all Parties.

                

        

      

      
        
          	13.4	
                  Break Costs

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall, within three (3) Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part
                      of a Loan or Unpaid Sum being paid by the Borrowers on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

                

        

      

      
        
          	

                	(b)	
                  Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Break Costs
                      for any Interest Period in which they accrue.

                

        

      

      
        
          	14	
                  FEES

                

        

      

      
        
          	14.1	
                  Arrangement fee

                

        

      

      The Borrowers shall pay to the Facility Agent for further distribution a non-refundable arrangement
          fee in an amount and at such time as set out in a separate Fee Letter.

      
        
          	14.2	
                  Commitment fee

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall pay to the Facility Agent (for the account of each Lender) a fee in USD computed at a rate per annum equal to 40% of the Margin,
                      calculated on each Lender's available Commitment, from the date of this Agreement to the earlier of:

                

        

      

      
        
          	

                	(i)	
                  the date of cancellation of any Commitment or the expiry of the Availability Period; or

                

        

      

      
        
          	

                	(ii)	
                  the date on which the Facility has been fully drawn (subject to paragraph (d) of Clause 9.1 (Disposal or Total Loss)) or cancelled in whole.

                

        

      

      
        
          	

                	(b)	
                  The accrued commitment fee is payable quarterly in arrears on the last day of each fiscal quarter and on the last day of the Availability Period or such
                      other date upon which the Facility is fully drawn or cancelled in whole or, in respect of any part cancellation, on the cancelled amount on the date the cancellation is effective.

                

        

      

      
        

        34 | 123

        
          

      

      

      

      
        
          	14.3	
                  Agency fee

                

        

      

      The Borrowers shall pay to the Facility Agent an annual agency fee in the amount and at the times
          as set out in a Fee Letter.

      
        
          	14.4	
                  Substitution fee

                

        

      

      In the event that the Borrowers request a Substitution, the Borrowers shall pay to the Facility
          Agent (for distribution pro rata to the Lenders) a substitution fee equal to 15 bps of the Tranche relating to the Substitution Vessel within five (5) days from the Substitution Date.

      SECTION 6

      ADDITIONAL PAYMENT OBLIGATIONS

      
        
          	15	
                  TAX GROSS UP AND INDEMNITIES

                

        

      

      
        
          	15.1	
                  Tax gross-up

                

        

      

      
        
          	

                	(a)	
                  Each Obligor shall make all payments to be made by it under any Finance Document free and clear of and without deduction for or on account of any Taxes,
                      unless any Obligor is required by law to make such payment subject to the deduction or withholding of such Taxes.

                

        

      

      
        
          	

                	(b)	
                  If a tax deduction or withholding is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an
                      amount which (after making any deduction or withholding) leaves an amount equal to the payment which would have been due if no such deduction or withholding had been required.

                

        

      

      
        
          	15.2	
                  Tax indemnity

                

        

      

      
        
          	

                	(a)	
                  Without prejudice to Clause 15.1 (Tax gross-up), if
                      any Finance Party is required to make any payment of or on account of Tax on or in relation to any sum received or receivable hereunder (including any sum received or receivable under this Clause 15) or if any liability in respect of
                      such payment is asserted or imposed against any Finance Party, each Obligor shall, upon demand of the Facility Agent, promptly pay to the Finance Party an amount equal to the loss, liability or cost which that Finance Party determines
                      will be or has been (directly or indirectly) suffered for or on account of Tax in respect of a Finance Document.

                

        

      

      
        
          	

                	(b)	
                  Paragraph (a) above shall not apply:

                

        

      

      
        
          	

                	(i)	
                  with respect to any Tax imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable)
                      by that Finance Party by the jurisdiction in which such Finance Party is treated as resident for tax purposes;

                

        

      

      
        
          	

                	(ii)	
                  to the extent a loss, liability or cost is compensated for by an increased payment under Clause 15.1 (Tax gross-up); or

                

        

      

      
        
          	

                	(iii)	
                  to the extent a loss, liability or cost relates to a FATCA Deduction required to be made by a Party.

                

        

      

      
        

        35 | 123

        
          

      

      

      

      
        
          	15.3	
                  Tax Credit

                

        

      

      
        
          	

                	(a)	
                  If any Obligor makes a Tax Payment and the relevant Finance Party determines that:

                

        

      

      
        
          	

                	(i)	
                  a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part or to that Tax Payment; and

                

        

      

      
        
          	

                	(ii)	
                  that Finance Party has obtained, utilised and retained that Tax Credit,

                   

                    

                  the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position
                      as it would have been in had the Tax Payment not been required to be made by the Borrower.

                

        

      

      
        
          	

                	(b)	
                  For the purpose of paragraph (a) above:

                

        

      

      
        
          	

                	(i)	
                  "Tax Credit" means a credit against, relief or
                      remission for, or repayment of, any Tax; and

                

        

      

      
        
          	

                	(ii)	
                  "Tax Payment" means either the increase in a payment
                      made by an Obligor to a Finance Party under Clause 15.1 (Tax gross-up) or a payment under Clause 15.2 (Tax indemnity).

                

        

      

      
        
          	15.4	
                  Stamp taxes

                

        

      

      Each Obligor shall pay and, within three (3) Business Days of demand, indemnify each Finance Party
          against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

      
        
          	15.5	
                  VAT

                

        

      

      All amounts set out or expressed in a Finance Document to be payable by an Obligor to a Finance
          Party shall be deemed to be exclusive of any VAT, and accordingly, if VAT is or becomes chargeable on any supply made by any Finance Party to an Obligor under a Finance Document, the Obligor shall pay to the Finance Party (in addition to and at
          the same time as paying any other consideration) an amount equal to the amount of such VAT.

      
        
          	15.6	
                  FATCA Information

                

        

      

      
        
          	

                	(a)	
                  Subject to paragraph (c) below, each Party shall, within ten (10) Business Days of a reasonable request by another Party:

                

        

      

      
        
          	

                	(i)	
                  confirm to that other Party whether it is:

                

        

      

      
        
          	

                	(A)	
                  a FATCA Exempt Party; or

                

        

      

      
        
          	

                	(B)	
                  not a FATCA Exempt Party; and

                

        

      

      
        
          	

                	(i)	
                  supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for
                      the purposes of that other Party's compliance with FATCA;

                

        

      

      
        

        36 | 123

        
          

      

      

      

      
        
          	

                	(ii)	
                  supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes
                      of that other Party's compliance with any other law, regulation, or exchange of information regime.

                

        

      

      
        
          	

                	(b)	
                  If a Party confirms to another Party pursuant to Clause 15.6 (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not,
                      or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

                

        

      

      
        
          	

                	(c)	
                  Paragraph (a) above shall not oblige any Finance Party to do anything which would or might in its reasonable opinion constitute a breach of:

                

        

      

      
        
          	

                	(i)	
                  any law or regulation;

                

        

      

      
        
          	

                	(ii)	
                  any policy of that Finance Party;

                

        

      

      
        
          	

                	(iii)	
                  any fiduciary duty; or

                

        

      

      
        
          	

                	(iv)	
                  any duty of confidentiality.

                

        

      

      
        
          	

                	(d)	
                  If a Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with paragraph (a) above (including,
                      for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in
                      question provides the requested confirmation, forms, documentation or other information.

                

        

      

      
        
          	15.7	
                  FATCA Deduction

                

        

      

      
        
          	

                	(a)	
                  Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party
                      shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

                

        

      

      
        
          	

                	(b)	
                  Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA
                      Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Borrowers and the Facility Agent and the Facility Agent shall notify the other Finance Parties.

                

        

      

      
        
          	16	
                  INCREASED COSTS

                

        

      

      
        
          	16.1	
                  Increased costs

                

        

      

      
        
          	

                	(a)	
                  Subject to Clause 16.3 (Exceptions) each Obligor
                      shall, within three (3) Business Days of a demand by the Facility Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of:

                

        

      

      
        
          	

                	(i)	
                  the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation;

                

        

      

      
        

        37 | 123

        
          

      

      

      

      
        
          	

                	(ii)	
                  compliance with any law or regulation made after the date of this Agreement;

                

        

      

      
        
          	

                	(iii)	
                  implementation of or compliance with Basel III, CRD IV or CRR; or

                

        

      

      
        
          	

                	(iv)	
                  the implementation, application of or compliance with IFRS 9 or any other changes in relevant reporting standards.

                

        

      

      For the purpose of this Clause 16.1:

      "Basel

            III" shall mean the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework
          for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented
          or restated, and any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III".

      "CRD

            IV" means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive
          2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

      "CRR"
          means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU No 648/2012).

      "IFRS

            9" means the International Financial Reporting Standard (IFRS) by the International Accounting Standards Board (IASB) designated as "IFRS 9" and replacing IAS 39.

      
        
          	

                	(b)	
                  In this Agreement "Increased Costs" means:

                

        

      

      
        
          	

                	(i)	
                  a reduction in the rate of return from the Facility or on a Finance Party's (or its Affiliate's) overall capital;

                

        

      

      
        
          	

                	(ii)	
                  an additional or increased cost; or

                

        

      

      
        
          	

                	(iii)	
                  a reduction of any amount due and payable under any Finance Document, which is incurred or suffered by a Finance Party or any of its Affiliates to the
                      extent that it is attributable to that Finance Party having entered into its participation in the Loans or funding or performing its obligations under any Finance Document.

                

        

      

      
        
          	16.2	
                  Increased cost claims

                

        

      

      
        
          	

                	(a)	
                  A Finance Party intending to make a claim pursuant to Clause 16.1 (Increased Costs) shall notify the Facility Agent of the event giving rise to the claim, following which the Facility Agent shall promptly notify the Borrower.

                

        

      

      
        
          	

                	(b)	
                  Each Finance Party shall, as soon as practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Increased Costs.

                

        

      

      
        

        38 | 123

        
          

      

      

      

      
        
          	16.3	
                  Exceptions

                

        

      

      Clause 16.1 (Increased Costs) does not apply to the extent any Increased Cost is:

      
        
          	

                	(a)	
                  attributable to a tax deduction or withholding required by law to be made by an Obligor;

                

        

      

      
        
          	

                	(b)	
                  compensated for by Clause 15.1 (Tax gross-up) or
                      Clause 15.2 (Tax indemnity);

                

        

      

      
        
          	

                	(c)	
                  attributable to a FATCA Deduction required to be made by a Party; or

                

        

      

      
        
          	

                	(d)	
                  attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation.

                

        

      

      
        
          	17	
                  OTHER INDEMNITIES

                

        

      

      
        
          	17.1	
                  Currency indemnity

                

        

      

      
        
          	

                	(a)	
                  If any sum due from an Obligor under the Finance Documents (a "Sum"), or any order, judgment or award given or made
                      in relation to a Sum, has to be converted from the currency (the "First Currency") in which that Sum is payable into another
                      currency (the "Second Currency") for the purpose of:

                

        

      

      
        
          	

                	(i)	
                  making or filing a claim or proof against an Obligor; or

                

        

      

      
        
          	

                	(ii)	
                  obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

                  

                      each Obligor shall as an independent obligation, within three (3) Business Days of demand, indemnify the Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion
                      including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that
                      Sum.

                

        

      

      
        
          	

                	(b)	
                  Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency other than that in
                      which it is expressed to be payable.

                

        

      

      
        
          	17.2	
                  Other indemnities

                

        

      

      
        
          	

                	(a)	
                  Each Obligor shall, within three (3) Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by it as a result
                      of:

                

        

      

      
        
          	

                	(i)	
                  the occurrence of any Event of Default;

                

        

      

      
        
          	

                	(ii)	
                  a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as
                      a result of Clause 31 (Sharing among the Finance Parties);

                

        

      

      
        
          	

                	(iii)	
                  funding, or making arrangements to fund, its participation in a Loan requested in a Drawdown Request but not made by reason of the operation of any one or
                      more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone);

                

        

      

      
        

        39 | 123

        
          

      

      

      

      
        
          	

                	(iv)	
                  a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower; or

                

        

      

      
        
          	

                	(v)	
                  any civil penalty or fine against, any settlement, and any other liability, and all reasonable costs and expenses (including reasonable counsel fees and
                      disbursements) incurred by the Facility Agent or any Lender as a result of the violation of any Obligor or any of their directors, officers, employees, agents or advisors, of any Sanctions.

                

        

      

      
        
          	

                	(b)	
                  The indemnity in (a)(v) above shall cover any liability incurred by each Finance Party in any jurisdiction arising under or in connection with any
                      Sanctions.

                

        

      

      
        
          	17.3	
                  Indemnity to the Facility Agent and the Security Agent

                

        

      

      
        
          	

                	(a)	
                  Each Obligor shall promptly indemnify the Facility Agent and the Security Agent against any cost, loss or liability incurred by the Facility Agent or the
                      Security Agent (acting reasonably) as a result of:

                

        

      

      
        
          	

                	(i)	
                  any failure by any Obligor to comply with its obligations under Clause 19 (Cost and Expenses);

                

        

      

      
        
          	

                	(ii)	
                  acting as Facility Agent (and otherwise in the case of any cost, loss or liability pursuant to an Disruption Event) under the Finance Documents;

                

        

      

      
        
          	

                	(iii)	
                  acting as Security Agent under the Security Documents or which otherwise relates to any Security created thereby;

                

        

      

      
        
          	

                	(iv)	
                  instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement;

                

        

      

      
        
          	

                	(v)	
                  investigating any event which it reasonably believes is a Default;

                

        

      

      
        
          	

                	(vi)	
                  acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised;

                

        

      

      
        
          	

                	(vii)	
                  the taking, holding, protection or enforcement of the Security created by the Security Documents;

                

        

      

      
        
          	

                	(viii)	
                  the exercise of any of the rights, powers, discretions and remedies vested in the Facility Agent by the Finance Documents or by law; and

                

        

      

      
        
          	

                	(ix)	
                  any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents.

                

        

      

      
        
          	

                	(b)	
                  The Security Agent may, in priority to any payment to the Secured Parties, indemnify itself out of the Security pursuant to the Security Documents in
                      respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 17.3 and shall have a lien on the Security pursuant to the Security Documents and the proceeds of the enforcement of the Security
                      pursuant to the Security Documents for all moneys payable to it.

                

        

      

      
        

        40 | 123

        
          

      

      

      

      
        
          	18	
                  MITIGATION BY THE LENDERS

                

        

      

      
        
          	18.1	
                  Mitigation

                

        

      

      
        
          	

                	(a)	
                  Each Finance Party shall, in consultation with the Borrowers, take all reasonable steps to mitigate any circumstances which arise and which would result in
                      any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 9.1 (Illegality), Clause 15 (Tax gross-up and indemnities) or Clause 16 (Increased Costs).

                

        

      

      
        
          	

                	(b)	
                  Paragraph (a) above does not in any way limit the obligations of the Obligors under the Finance Documents.

                

        

      

      
        
          	18.2	
                  Limitation of liability

                

        

      

      
        
          	

                	(a)	
                  Each Obligor shall promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by
                      it under Clause 18.1 (Mitigation).

                

        

      

      
        
          	

                	(b)	
                  A Finance Party is not obliged to take any steps under Clause 18.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

                

        

      

      
        
          	19	
                  COSTS AND EXPENSES

                

        

      

      
        
          	19.1	
                  Transaction expenses

                

        

      

      Each Obligor shall promptly on demand pay the Facility Agent the amount of all costs and expenses
          (including but not limited to travel expenses, legal fees, fees of tax advisor, technical advisor, independent appraiser and insurance consultant etc.) reasonably incurred by the Facility Agent and the Security Agent in connection with the
          negotiation, preparation, printing, execution and perfection of:

      
        
          	

                	(a)	
                  this Agreement and any other documents referred to in this Agreement and the Security Documents; and

                

        

      

      
        
          	

                	(b)	
                  any other Finance Documents executed after the date of this Agreement.

                

        

      

      
        
          	19.2	
                  Amendment costs

                

        

      

      If any Obligor requests an amendment, waiver or consent, each Obligor shall, within three (3)
          Business Days of demand, reimburse the Facility Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by any Finance Party in responding to, evaluating, negotiating or complying with that request or
          requirement.

      
        
          	19.3	
                  Enforcement and preservation costs

                

        

      

      Each Obligor shall, within three (3) Business Days of demand, pay to each Finance Party the amount
          of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of or the preservation of any rights under any Finance Document and the Security Documents and any proceedings instituted by or against the
          Facility Agent and/or Security Agent as a consequence of taking or holding the Security created under the Security Documents or enforcing these rights.

      
        

        41 | 123

        
          

      

      

      

      SECTION 7

      GUARANTEE AND SECURITY

      
        
          	20	
                  ON-DEMAND GUARANTEE AND INDEMNITY

                

        

      

      
        
          	20.1	
                  On-demand Guarantee and indemnity

                

        

      

      Each Guarantor irrevocably and unconditionally:

      
        
          	

                	(a)	
                  guarantees to each Finance Party punctual performance of the Borrowers' obligations under the Finance Documents;

                

        

      

      
        
          	

                	(b)	
                  undertakes with each Finance Party to immediately pay on first demand (No. påkravsgaranti) in accordance with a written demand by the Facility Agent (on behalf of the Finance Parties);

                

        

      

      
        
          	

                	(c)	
                  agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and
                      primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of the Borrowers not paying any amount which would, but for such unenforceability, invalidity or
                      illegality, have been payable by it under any Finance Document on the date when it would have been due.

                

        

      

      
        
          	20.2	
                  Continuing Guarantee

                

        

      

      This Guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by
          the Borrowers under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.

      
        
          	20.3	
                  Reinstatement

                

        

      

      If any discharge, release or arrangement (whether in respect of the obligations of the Borrowers or
          any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency or otherwise, then the liability of each
          Guarantor under this Guarantee will continue or be reinstated as if the discharge, release or arrangement had not occurred.

      
        
          	20.4	
                  Waiver of defences and compliance with the FA Act

                

        

      

      The provisions of the FA Act Section 67 shall not apply to this Guarantee and the obligations of
          each Guarantor under this Guarantee will not be affected by an act, omission, matter or thing which would otherwise reduce, release or prejudice any of its obligations under this Guarantee (without limitation and whether or not known to it or any
          Finance Party), including:

      
        
          	

                	(a)	
                  any defence, objection or similar action based on (and/or arising from) the Finance Documents or other underlying relationships, agreements and transactions
                      whatsoever (to the extent permitted by law);

                

        

      

      
        
          	

                	(b)	
                  any failure to comply with Sections 62 to 74 of the FA Act;

                

        

      

      
        
          	

                	(c)	
                  any time, waiver or consent granted to, or composition with, any Borrower or other person;

                

        

      

      
        

        42 | 123

        
          

      

      

      

      
        
          	

                	(d)	
                  the release of the Borrowers or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

                

        

      

      
        
          	

                	(e)	
                  the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security
                      over assets of, any of the Borrowers or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

                

        

      

      
        
          	

                	(f)	
                  any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of any of the Borrowers or any other
                      person;

                

        

      

      
        
          	

                	(g)	
                  any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of a Finance Document or
                      any other document or security including, without limitation, any change in the purpose of, any extension of or increase in any facility or the addition of any new facility under any Finance Document or other document or security;

                

        

      

      
        
          	

                	(h)	
                  any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; or

                

        

      

      
        
          	

                	(i)	
                  any insolvency or similar proceedings.

                

        

      

      
        
          	20.5	
                  Immediate recourse

                

        

      

      Each Guarantor waives any right it may have of first requiring any Finance Party to proceed against
          or enforce any other rights or security or claim payment from any person before claiming from each Guarantor under this Guarantee. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

      
        
          	20.6	
                  Appropriations

                

        

      

      Until all amounts which may be or become payable by the Borrowers under or in connection with the
          Finance Documents have been irrevocably paid in full, each Finance Party may:

      
        
          	

                	(a)	
                  refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party in respect of those amounts, or apply and
                      enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and each Guarantor shall not be entitled to the benefit of the same; and

                

        

      

      
        
          	

                	(b)	
                  hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor's liability under this Guarantee.

                

        

      

      
        
          	20.7	
                  Deferral of Guarantor's rights

                

        

      

      Until all amounts which may be or become payable by the Borrowers under or in connection with the
          Finance Documents have been irrevocably paid in full and unless the Facility Agent otherwise directs, each Guarantor will not exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or
          by reason of any amount being payable, or liability arising, under this Guarantee:

      
        
          	

                	(a)	
                  to be indemnified by any of the Borrowers;

                

        

      

      
        

        43 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  to claim any contribution from any other guarantor of any of the Borrowers' obligations under the Finance Documents;

                

        

      

      
        
          	

                	(c)	
                  to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or
                      of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

                

        

      

      
        
          	

                	(d)	
                  to bring legal or other proceedings for an order requiring any of the Borrowers to make any payment, or perform any obligation;

                

        

      

      
        
          	

                	(e)	
                  to assign any claim it may have against any of the Borrowers to any person or entity;

                

        

      

      
        
          	

                	(f)	
                  to exercise any right of set-off against any of the Borrowers; and/or

                

        

      

      
        
          	

                	(g)	
                  to claim or prove as a creditor of any of the Borrowers in competition with any Finance Party, however, so that any Guarantor shall be entitled to prove in
                      the liquidation or other dissolution of any of the Borrowers, subject to paying to the Facility Agent (on behalf of the Lenders) any proceeds of the liquidation or other dissolution received by the Guarantor.

                

        

      

      If any Guarantor receives any benefit, payment or distribution in relation to such rights it shall
          hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by any of the Borrowers under or in connection with the Finance Documents to be repaid in full on trust
          for the Finance Parties and shall promptly pay or transfer the same to the Facility Agent or as the Facility Agent may direct for application in accordance with Clause 32 (Payment mechanics).

      
        
          	20.8	
                  Additional security

                

        

      

      This Guarantee is in addition to the Security to be created under the Security Documents.

      The information regarding additional Security is included to meet the requirements of Section 61 of
          the FA Act and shall not in any way prejudice the Facility Agent's rights to amend or waive any Security.

      
        
          	20.9	
                  Guarantee Limitations

                

        

      

      Each Guarantor's liability under this Guarantee shall never exceed USD 380,000,000, plus interest
          thereon and fees, costs and expenses as set out in this Agreement and the other Finance Documents.

      
        
          	20.10	
                  Joint and several obligations of the Borrowers

                

        

      

      To the extent any of the Borrowers' joint liability under this Agreement or the Finance Documents
          covering:

      
        
          	

                	(a)	
                  any part of the Loans applied to finance the acquisition of any Collateral Vessel owned by any of the other Borrowers; and/or

                

        

      

      
        
          	

                	(b)	
                  any liabilities under any Hedging Agreements entered into by any of the other Borrowers,

                

        

      

      
        

        44 | 123

        
          

      

      

      

      are considered or deemed to represent a guarantee by any of the Borrowers, then the provisions
          under this Clause 20, including the maximum guaranteed amount under Clause 20.9, shall apply mutatis mutandis to such joint liability of the Borrowers, however, for the avoidance of doubt, not to any part of a Borrower's liability for any part of
          the Loans applied to finance the Collateral Vessel owned by such Borrower or to any Hedging Agreement which, irrespective of any agreement on joint liability, would have been such Borrower's own and sole liability.

      
        
          	21	
                  SECURITY

                

        

      

      
        
          	21.1	
                  Security Documents

                

        

      

      The obligations of the Obligors under the Finance Documents shall be secured by:

      
        
          	

                	(a)	
                  the Account Pledge;

                

        

      

      
        
          	

                	(b)	
                  the Assignment of Earnings and Charterparties;

                

        

      

      
        
          	

                	(c)	
                  the Assignment of Hedging Claims;

                

        

      

      
        
          	

                	(d)	
                  the Assignment of Insurances;

                

        

      

      
        
          	

                	(e)	
                  the Assignment of Intercompany Loans;

                

        

      

      
        
          	

                	(f)	
                  the Mortgages; and

                

        

      

      
        
          	

                	(g)	
                  the Share Pledges.

                

        

      

      
        
          	21.2	
                  Sharing of Security

                

        

      

      The Security created by the Security Documents shall secure the Obligors' obligations under this
          Agreement and the Hedging Agreements on a pro rata basis, but subject to distribution of proceeds in accordance with Clause 32.4 (Partial payments).

      
        
          	21.3	
                  Set-off

                

        

      

      A Finance Party may set-off any obligation due from any Obligor under a Finance Document against
          any obligation owed by that Finance Party to the Obligor, regardless of the place of payment, booking branch or currency of any such obligation. If the obligations are in different currencies, the Finance Party may convert the obligation at a
          market rate of exchange in its usual course of business for the purpose of the set-off.

      
        
          	21.4	
                  Perfection and further assistance

                

        

      

      
        
          	

                	(a)	
                  Each Obligor shall promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions)
                      as the Security Agent may reasonably specify (and in such form as the Security Agent may reasonably require in favour of the Security Agent or its nominee(s)):

                

        

      

      
        

        45 | 123

        
          

      

      

      

      
        
          	

                	(i)	
                  to perfect the Security created or intended to be created under or evidenced by the Security Documents (which may include the execution of a mortgage,
                      charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Security) or for the exercise of any rights, powers and remedies of the Security Agent or the Finance Parties
                      provided by or pursuant to the Finance Documents or by law;

                

        

      

      
        
          	

                	(ii)	
                  to confer on the Security Agent, Security over any property and assets of that Obligor located in any jurisdiction equivalent or similar to the Security
                      intended to be conferred by or pursuant to the Security Documents; and/or

                

        

      

      
        
          	

                	(iii)	
                  to facilitate the realisation of the assets which are, or are intended to be, the subject of the Security.

                

        

      

      
        
          	

                	(b)	
                  Each Obligor shall take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the
                      creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Security Agent or the Finance Parties by or pursuant to the Finance Documents.

                

        

      

      
        
          	

                	(c)	
                  If the Security Agent enforces any or all of the Share Pledges, each Guarantor and each Borrower hereby irrevocably (i) waives any and all of its claims
                      against the (other) Borrowers and releases the (other) Borrowers from any and all liabilities to each Guarantor and each Borrower, including but not limited to any liabilities of the (other) Borrowers under any intra-group or
                      shareholder loans and any liability to each Guarantor and the (other) Borrowers under any recourse claims (the "Borrower Liabilities"),

                      and (ii) authorises the Security Agent and grants power of attorney to the Security Agent to (without any consent, sanction, authority or further confirmation from any other party), to release any and all of the Borrower Liabilities,
                      in order to allow for a sale of the shares in each of the Borrowers to be completed without any claims of any Guarantor and/or any of the (other) Borrowers continuing to exist against any of the Borrowers following such sale to the
                      extent permitted by applicable mandatory laws.

                

        

      

      
        
          	

                	(d)	
                  Each Borrower shall ensure that the Mortgages be amended to cover any and all Hedging Agreements entered into subsequent to the date of any of the
                      Mortgages, on terms acceptable to the Security Agent and without undue delay from entry into of any such Hedging Agreement, in order to secure that any liability of the Borrowers under any and all Hedging Agreements are secured under
                      the Mortgages.

                

        

      

      SECTION 8

      REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

      
        
          	22	
                  REPRESENTATIONS

                

        

      

      
        
          	22.1	
                  General

                

        

      

      
        

        46 | 123

        
          

      

      

      

      Each of the Obligors makes the representations and warranties set out in this Clause 22 to each
          Finance Party.

      
        
          	22.2	
                  Status

                

        

      

      
        
          	

                	(a)	
                  It is a company with limited liability or corporation, as applicable, duly incorporated and validly existing under the law of its jurisdiction of
                      incorporation.

                

        

      

      
        
          	

                	(b)	
                  It has the power to own its assets and carry on its business as it is being conducted.

                

        

      

      
        
          	22.3	
                  Binding obligations

                

        

      

      
        
          	

                	(a)	
                  The obligations expressed to be assumed by it in each Finance Document are (or, when executed, will be) legal, valid, binding and enforceable obligations.

                

        

      

      
        
          	

                	(b)	
                  Each Security Document will, when duly executed, delivered and perfected, create the Security which that Security Document purports to create and that
                      Security will then be valid and effective.

                

        

      

      
        
          	22.4	
                  Non-conflict with other obligations

                

        

      

      The entry into and performance by it of, and the transactions contemplated by, the Finance
          Documents and the granting of the Security pursuant to the Security Documents, do not and will not conflict with:

      
        
          	

                	(a)	
                  any present law or regulation applicable to it (including Directive 1905/60/EC of the European Parliament and of the Council of the European Communities
                      Union of 26 October 2005, implemented to combat money laundering);

                

        

      

      
        
          	

                	(b)	
                  its constitutional documents; or

                

        

      

      
        
          	

                	(c)	
                  any agreement or instrument binding upon it or any of its assets.

                

        

      

      
        
          	22.5	
                  Power and authority

                

        

      

      
        
          	

                	(a)	
                  It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the
                      Finance Documents to which it is a party and the transactions contemplated by those documents.

                

        

      

      
        
          	

                	(b)	
                  No limit on its powers will be exceeded as a result of the borrowing, granting of security or giving of guarantees or indemnities contemplated by the
                      Finance Documents.

                

        

      

      
        
          	22.6	
                  Authorisations

                

        

      

      All authorisations, consents, licenses, approvals or exemptions of any governmental or regulatory
          authority, bureau or agency in the Relevant Jurisdictions required in connection with the execution, delivery, performance, validity or enforceability of this Agreement and the Finance Documents to which it is a party and any other agreements and
          instruments required or contemplated hereunder have been delivered to the Facility Agent and are in full force and effect, and any condition contained therein or otherwise applicable thereto has been or will at the appropriate time be complied
          with and fulfilled during the life of this Agreement.

      
        

        47 | 123

        
          

      

      

      

      
        
          	22.7	
                  Payment of Taxes

                

        

      

      It has complied with all taxation laws in all jurisdictions where it is subject to taxation and
          has paid all Taxes and other amounts due to governments and other public bodies. No claims are being asserted against it with respect to any Taxes or other payments due to public or governmental bodies save as disclosed to the Lenders pursuant to
          Clause 25.6 (Taxation).

      
        
          	22.8	
                  Governing law and enforcement

                

        

      

      
        
          	

                	(a)	
                  The choice of governing law of the Finance Documents will be recognised and enforced in its Relevant Jurisdictions.

                

        

      

      
        
          	

                	(b)	
                  Any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in
                      its Relevant Jurisdictions.

                

        

      

      
        
          	22.9	
                  No winding up

                

        

      

      No:

      
        
          	

                	(a)	
                  corporate action, legal proceeding or other procedure or step described in paragraph (a) of Clause 27.7 (Insolvency proceedings); or

                

        

      

      
        
          	

                	(b)	
                  creditors' process described in Clause 27.8 (Creditors'
                        process), has been taken or threatened in relation to any Obligor and none of the circumstances described in Clause 27.6 (Insolvency)
                      is applicable.

                

        

      

      
        
          	22.10	
                  No filing or stamp taxes

                

        

      

      Under the laws of its Relevant Jurisdiction it is not necessary that the Finance Documents be
          filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the
          Finance Documents, except the registration of the Mortgages with the Approved Ship Registry, which registrations, filings, taxes and fees shall be made and paid promptly by the Obligors after the date of the relevant Finance Document.

      
        
          	22.11	
                  No default

                

        

      

      
        
          	

                	(a)	
                  No Default is continuing or might reasonably be expected to result from the making of any Drawdown or the entry into and performance of or any transaction
                      contemplated by any of the Finance Documents.

                

        

      

      
        
          	

                	(b)	
                  No other event or circumstance is outstanding which constitutes or might reasonably be expected to constitute a default or termination event (however
                      described) under any other agreement or instrument which is binding on it or to which its assets are subject which has or is reasonably likely to have a Material Adverse Effect.

                

        

      

      
        

        48 | 123

        
          

      

      

      

      
        
          	22.12	
                  No misleading information

                

        

      

      Any factual information provided by any Obligor and/or its advisors in connection with the Finance
          Documents was, to each Obligor's knowledge, after having made due and careful enquiries, true and accurate in all material respects as at the date the information is expressed to be given and all projections (if any) contained therein have been
          prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied.

      
        
          	22.13	
                  Original Financial Statements

                

        

      

      
        
          	

                	(a)	
                  The Original Financial Statements were prepared in accordance with IFRS consistently applied and fairly represent its financial condition and results of
                      operations during the relevant financial year.

                

        

      

      
        
          	

                	(b)	
                  There has been no material adverse change in its business or financial condition since 31 December 2016.

                

        

      

      
        
          	

                	(c)	
                  All financial documents and information relating to it or otherwise relevant to the matters contemplated by this Agreement which have been supplied to the
                      Facility Agent or the Lenders by it are complete and correct in all material respects, and it has not omitted to disclose to the Finance Parties any information, documents or agreements known to it which, if disclosed, could in its
                      opinion reasonably be expected to affect the decision of the Finance Parties to enter into this Agreement.

                

        

      

      
        
          	22.14	
                  Pari Passu Ranking

                

        

      

      Its payment obligations under the Finance Documents rank at least pari passu with the claims of all
          its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

      
        
          	22.15	
                  No proceedings pending or threatened

                

        

      

      No litigation, arbitration or administrative proceedings of, or before, any court, arbitral body or
          agency which might reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief (having made due and careful enquiry)) been started or threatened against it.

      
        
          	22.16	
                  No breach of laws

                

        

      

      It is in compliance in all material respect with all laws and regulation applicable to it.

      
        
          	22.17	
                  Environmental compliance

                

        

      

      It has performed and observed all Environmental Laws, Environmental Approvals and all other
          covenants, conditions, restrictions or agreements directly or indirectly concerned with any contamination, pollution or waste or the release or discharge of any toxic or hazardous substance in connection with its on-going operations.

      
        
          	22.18	
                  Environmental Claims

                

        

      

      No Environmental Claim has been commenced (or if commenced, there are none that are not fully
          settled) or is threatened against it.

      22.19 Collateral Vessel

      Each Collateral Vessel will from the applicable Drawdown Date be:

      
        

        49 | 123

        
          

      

      

      

      
        
          	

                	(a)	
                  in the absolute ownership of the relevant Borrower, free and clear of all encumbrances (other than current crew wages and the Mortgage) and the relevant
                      Borrower will be the sole, legal and beneficial owner of the applicable Collateral Vessel;

                

        

      

      
        
          	

                	(b)	
                  registered in the name of the relevant Borrower with the Approved Ship Registry;

                

        

      

      
        
          	

                	(c)	
                  operationally seaworthy in every way and fit for service; and

                

        

      

      
        
          	

                	(d)	
                  classed with an Approved Classification Society, free of all overdue requirements and other material recommendations.

                

        

      

      
        
          	22.20	
                  ISM Code, ISPS Code and Marpol Compliance

                

        

      

      From the applicable Drawdown Date, all requirements of the ISM Code, the ISPS Code, Marpol and any
          other applicable international maritime safety regulation relevant to the operation and maintenance of each Collateral Vessel have been complied with.

      
        
          	22.21	
                  Ownership

                

        

      

      
        
          	

                	(a)	
                  The Ultimate Parent owns 100% of all the shares in the Intermediate Parent.

                

        

      

      
        
          	

                	(b)	
                  The Intermediate Parent owns 100% of all shares in each of the Borrowers.

                

        

      

      
        
          	22.22	
                  Business of the Borrowers

                

        

      

      Each Borrower will only be involved in the ownership and/or operation of the Collateral Vessels and
          activities related thereto.

      
        
          	22.23	
                  Restricted Persons

                

        

      

      No Obligor nor any member of the Group nor any director, officer, agent or employee of any of them
          or person acting on behalf of the foregoing is a Restricted Person nor acts directly or indirectly on behalf of a Restricted Person, is in breach of Sanctions or, to its knowledge, subject to or involved in any complaint, claim, proceeding,
          formal notice, investigation or other action by any regulatory or enforcement authority or third party concerning any Sanctions.

      
        
          	22.24	
                  Transaction Documents

                

        

      

      
        
          	

                	(a)	
                  The Transaction Documents to which any Obligor is a party are, subject to any principles of law of general and mandatory application, in full force and
                      effect and constitutes legal, valid and binding rights and obligations of the applicable Obligors enforceable in accordance with their terms and in respect of other parties, to the best of the Obligors' knowledge, enforceable in all
                      material respects.

                

        

      

      
        
          	

                	(b)	
                  The Transaction Documents to which any Obligor is not a party are, subject to any principles of law of general and mandatory application, to the best of the
                      Obligors' knowledge, in full force and effect and constitutes legal, valid, binding and enforceable rights and obligations in all material respects of the parties thereto.

                

        

      

      
        
          	

                	(c)	
                  No material amendments have been made to any Transaction Document to which an Obligor is a party, other than as disclosed in writing to the Finance Parties
                      prior to the date of this Agreement.

                

        

      

      
        

        50 | 123

        
          

      

      

      

      
        
          	22.25	
                  Times when representations made

                

        

      

      
        
          	

                	(a)	
                  All the representations and warranties in this Clause 22 are deemed to be made by each Obligor on the date of this Agreement.

                

        

      

      
        
          	

                	(b)	
                  The Repeating Representations are deemed to be made by each Obligor on the date of a Drawdown Request, on the Drawdown Date and on the first day of each
                      Interest Period by reference to the facts and circumstances then existing.

                

        

      

      
        
          	23	
                  INFORMATION UNDERTAKINGS

                

        

      

      The undertakings in this Clause 23 remain in force from the date of this Agreement for so long as
          any amount is outstanding under the Finance Documents or any Commitment is in force.

      
        
          	23.1	
                  Financial statements

                

        

      

      Each Obligor shall supply to the Facility Agent in sufficient copies for all the Lenders:

      
        
          	

                	(a)	
                  as soon as reasonably practicable after the same are available (and in any event no later than one-hundred and twenty (120) days after the end of its
                      financial year):

                

        

      

      
        
          	

                	(i)	
                  the unaudited unconsolidated (in respect of the Borrowers) financial statement for that financial year;

                

        

      

      
        
          	

                	(ii)	
                  the audited consolidated (in respect of the Ultimate Parent) financial statement for that financial year; and

                

        

      

      
        
          	

                	(b)	
                  as soon as reasonably practicable after the same are available (and in any event no later than sixty (60) days after the end of each financial quarters:

                

        

      

      
        
          	

                	(i)	
                  the unaudited and unconsolidated (in respect of each Obligor) quarterly financial statements for that financial quarter; and

                

        

      

      
        
          	

                	(ii)	
                  the unaudited consolidated (in respect of the Ultimate Parent) financial statement for that financial quarter.

                

        

      

      
        
          	23.2	
                  Budget

                

        

      

      The Ultimate Parent shall supply to the Facility Agent in sufficient copies for all the Lenders, as
          soon as reasonably practicable after the same are available (and in any event no later than 31 January each year), its consolidated budget and cash flow projections for the next financial year, in form and substance satisfactory to the Facility
          Agent.

      
        
          	23.3	
                  Provision and contents of Compliance Certificate

                

        

      

      
        
          	

                	(a)	
                  The Ultimate Parent shall supply a Compliance Certificate to the Facility Agent with each set of annual and quarterly financial statements.

                

        

      

      
        
          	

                	(b)	
                  The Compliance Certificate shall, amongst other things, set out (in reasonable detail) computations as to compliance with Clause 24 (Financial Covenants), Clause 26.1 (Vessel insurances)
                      and Clause 26.11 (Fair Market Value), together with any relevant supporting documentation, such as valuations of the Collateral
                      Vessels in accordance with Clause 23.5 (Report on Fair Market Value), enabling the Lenders to determine and monitor the Obligors'
                      compliance.

                

        

      

      
        

        51 | 123

        
          

      

      

      

      
        
          	

                	(c)	
                  Each Compliance Certificate shall be signed by the CFO or another person authorised to represent the Ultimate Parent.

                

        

      

      
        
          	23.4	
                  Requirements as to financial statements

                

        

      

      
        
          	

                	(a)	
                  The Obligors shall procure that each set of financial statements includes a balance sheet, profit and loss account, cash flow statement and appropriate
                      explanatory notes.

                

        

      

      
        
          	

                	(b)	
                  Each set of financial statements delivered pursuant to Clause 23.1 (Financial statements) shall be:

                

        

      

      
        
          	

                	(i)	
                  prepared in accordance with IFRS, accounting practices and financial reference periods consistent with those applied in the preparation of the Original
                      Financial Statements; and

                

        

      

      
        
          	

                	(ii)	
                  signed by an authorised person of each Obligor.

                

        

      

      
        
          	23.5	
                  Report on Fair Market Value

                

        

      

      
        
          	

                	(a)	
                  The Obligors shall, at their own expense, arrange for the Fair Market Value to be determined semi-annually in connection with Q1 and Q3 financial
                      statements.

                

        

      

      
        
          	

                	(b)	
                  The Lenders may obtain valuations on the Fair Market Value at any time during the tenor of the Facility at their own expense or, in case of an Event of
                      Default or a mandatory prepayment event under Clause 9.1 (Disposal or Total Loss), at the expense of the Obligors.

                

        

      

      
        
          	23.6	
                  Information: miscellaneous

                

        

      

      The Obligors shall supply to the Facility Agent (in sufficient copies for all the Lenders, if the
          Facility Agent so requests):

      
        
          	

                	(a)	
                  at the same time as they are dispatched, copies of all relevant documents dispatched by any Obligor to its creditors in general;

                

        

      

      
        
          	

                	(b)	
                  promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current or, to its knowledge,
                      threatened or pending against any of the Obligors, and which, if adversely determined, might be reasonably expected to have a Material Adverse Effect, and further details of any such matter previously disclosed to the Facility Agent,
                      if the likelihood of an adverse determination has increased, as the Facility Agent may reasonably request; and

                

        

      

      
        
          	

                	(c)	
                  promptly on request, such further information as any Finance Party through the Facility Agent may reasonably request.

                

        

      

      
        
          	23.7	
                  Notification of default

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its
                      occurrence.

                

        

      

      
        

        52 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  Promptly upon a request by the Facility Agent, the Borrowers shall supply to the Facility Agent a certificate signed by an authorised signatory of the
                      Ultimate Parent certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

                

        

      

      
        
          	23.8	
                  "Know your customer" checks

                

        

      

      
        
          	

                	(a)	
                  If:

                

        

      

      
        
          	

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

                

        

      

      
        
          	

                	(ii)	
                  any Change in UBO after the date of this Agreement;

                

        

      

      
        
          	

                	(iii)	
                  any Applicable KYC Procedures;

                

        

      

      
        
          	

                	(iv)	
                  any change in the status of an Obligor (or of a Holding Company of an Obligor) or the composition of the shareholders of an Obligor (or of a Holding Company
                      of an Obligor) after the date of this Agreement; or

                

        

      

      
        
          	

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

                

        

      

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

      For the purpose of
            this Clause 23.8:

      "Applicable

            KYC Procedures" means any applicable "know your customer" checks or similar identification procedures, or equivalent internal policies of a Lender or the Facility Agent, or any equivalent procedures required by applicable law or
          regulations (including the Dutch money laundering and anti-terrorism act (Wet ter voorkoming van witwassen en financieren terrorisme).

      
        

        53 | 123

        
          

      

      

      

      "Change

            in UBO" means any event by which a private individual (natuurlijk persoon) (i) acquires the legal and/or beneficial ownership (directly or indirectly) of 25 per cent. or more of the issued share capital of an Obligor or (ii) the power
          (whether by way of ownership of shares, proxy, contract, agency or otherwise) to (directly or indirectly) cast, or control the casting of, 25 per cent. or more of the votes that might be cast at a general meeting of the Obligor or (iii) is
          otherwise able to exercise effective control over the Obligor.

      
        
          	

                	(b)	
                  Each Lender shall promptly upon the request of the Facility Agent supply, or procure the supply of, such documentation and other evidence as is reasonably
                      requested by the Facility Agent (for itself) in order for the Facility Agent to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations
                      pursuant to the transactions contemplated in the Finance Documents.

                

        

      

      
        
          	

                	(c)	
                  If an accession of a Replacement Borrower in the event of a proposed Substitution obliges the Facility Agent or any Lender to comply with "know your
                      customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Ultimate Parent shall promptly upon the request of the Facility Agent or any Lender supply, or procure
                      the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the
                      Facility Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the
                      accession of such Replacement Borrower.

                

        

      

      
        
          	23.9	
                  Notification of Environmental Claims

                

        

      

      Each Obligor shall inform the Facility Agent in writing as soon as reasonably practicable upon
          becoming aware of the same:

      
        
          	

                	(a)	
                  if any Environmental Claim has been commenced or (to the best of any Obligor's knowledge and belief) is threatened against any of the Obligors or the
                      Collateral Vessels; and

                

        

      

      
        
          	

                	(b)	
                  if any fact and circumstances which will or are reasonably likely to result in any Environmental Claim being commenced against any of the Obligors or any of
                      the Collateral Vessels.

                

        

      

      
        
          	24	
                  FINANCIAL COVENANTS

                

        

      

      
        
          	24.1	
                  Construction and definitions

                

        

      

      Except otherwise explicitly provided for in this Agreement, an accounting term used in this Clause
          is to be construed in accordance with IFRS.

      For the purposes of this Clause 24, the following definitions shall apply:

      "Cash

            and Cash Equivalents" means, at any date, the aggregate amount of freely available cash and cash equivalents of the Group, in each case reported in accordance with IFRS, including without limitation:

      
        

        54 | 123

        
          

      

      

      

      
        
          	

                	(a)	
                  cash in hand or on freely available deposit with any bank or financial institution;

                

        

      

      
        
          	

                	(b)	
                  certificates of deposits or marketable debt securities (included money market funds) with a maturity of twelve (12) months or less after the relevant date
                      of calculation, issued by an Arranger or a financial institution which has a rating for its long term unsecured and non-credit enhanced debt obligations with A or higher by Standard & Poor's Rating Services or Fitch Ratings Ltd or
                      A2 or higher by Moody's Investor Services Limited or a comparable rating from an internationally recognised credit rating agency; or

                

        

      

      
        
          	

                	(c)	
                  any other instrument, security or investment approved in writing by the Facility Agent, and in each case, to which any of the Obligors is beneficially
                      entitled at that time and which can be promptly realised and applied against the Loans.

                

        

      

      "Equity

            Ratio" means the ratio of Total Equity to Total Assets.

      "Liquidity"
          means, at any given time, the aggregate of:

      
        
          	

                	(a)	
                  in respect of each Borrower, the amount credited on its Operating Account; and

                

        

      

      
        
          	

                	(b)	
                  in respect of the Ultimate Parent (on consolidated basis), Cash and Cash Equivalents and, provided that Cash and Cash Equivalents contributes with minimum
                      USD 15,000,000, any amount freely and unconditionally available for drawings under the Sterna RCF.

                

        

      

      "Total

            Assets" means the aggregate book value of total assets in accordance with IFRS, less any goodwill.

      "Total

            Equity" means the aggregate book value of the equity treated as equity in accordance with IFRS.

      "Working

            Capital" means current assets less current liabilities (which shall exclude instalments of long term debt due in the next year, capital lease payments and, in respect of any Borrower only, any intra group debt incurred in accordance with
          Clause 25.13 (b) (ii) (Financial Indebtedness restrictions).

      
        
          	24.2	
                  Financial testing

                

        

      

      The financial covenants set out in this Clause 24 (Financial Covenants) shall be calculated in accordance with IFRS consistently applied and tested quarterly, by reference to each of the financial statements delivered pursuant to
          paragraphs (a) and (b) of Clause 23.1 (Financial Statements) and/or each Compliance Certificate delivered pursuant to Clause 23.3 (Provision and contents of Compliance Certificate) and/or, in respect of the Liquidity of each Borrower, by reference to the balance credited on
          the applicable Operating Accounts.

      
        
          	24.3	
                  Financial condition of Ultimate Parent (consolidated)

                

        

      

      The Ultimate Parent shall ensure that it maintains (on a consolidated basis) at all times:

      
        
          	

                	(a)	
                  an Equity Ratio of minimum 0.25 to 1.0;

                

        

      

      
        
          	

                	(b)	
                  a positive Working Capital; and

                

        

      

      
        
          	

                	(c)	
                  Liquidity of minimum the higher of:

                

        

      

      
        

        55 | 123

        
          

      

      

      

      
        
          	

                	(i)	
                  USD 15,000,000; or

                

        

      

      
        
          	

                	(ii)	
                  an amount equal to five per cent. (5%) of the Group's total interest bearing Financial Indebtedness on a consolidated basis (excluding the Sterna RCF) and
                      net of any Cash and Cash Equivalents.

                

        

      

      
        
          	24.4	
                  Financial condition of each Borrower (unconsolidated)

                

        

      

      Each Borrower shall ensure that it maintains at all times:

      
        
          	

                	(a)	
                  a positive Working Capital; and

                

        

      

      
        
          	

                	(b)	
                  Liquidity of minimum USD 1,200,000.

                

        

      

      
        
          	24.5	
                  Reporting breach

                

        

      

      If, prior to the delivery of a Compliance Certificate pursuant to Clause 23.3 (Provision and contents of Compliance Certificate), any Obligor becomes aware that the financial covenants set out in this Clause 24 (Financial Covenants) will not be
          complied with, the Obligors shall immediately notify the Facility Agent thereof.

      
        
          	25	
                  GENERAL UNDERTAKINGS

                

        

      

      The undertakings in this Clause 25 remain in force from the date of this Agreement for so long as
          any amount is outstanding under the Finance Documents or any Commitment is in force.

      
        
          	25.1	
                  Authorisations

                

        

      

      Each of the Obligors shall promptly:

      
        
          	

                	(a)	
                  obtain, comply with and do all that is necessary to maintain in full force and effect; and

                

        

      

      
        
          	

                	(b)	
                  supply certified copies to the Facility Agent of

                   

                    

                  any Authorisation required under any law or regulation of a Relevant Jurisdiction to enable it to perform its obligations under the Finance Documents,
                      ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document.

                

        

      

      
        
          	25.2	
                  Compliance with laws

                

        

      

      
        
          	

                	(a)	
                  Each Obligor shall, and shall ensure that each Group Company as well as any manager and charterer) comply in all material respects with all laws and
                      regulations to which it and any Collateral Vessel may be subject.

                

        

      

      
        
          	

                	(b)	
                  Without limiting paragraph (a) above, each Obligor shall not (and shall ensure that no Group Company, nor any manager or charterer) employ any Collateral
                      Vessel nor allow its employment, operation or management in any manner contrary to any law or regulation.

                

        

      

      
        
          	

                	(c)	
                  Each Obligor shall, and shall procure that each other Group Company and each Affiliate of any of them shall, comply in all respect with all Sanctions.

                

        

      

      
        

        56 | 123

        
          

      

      

      

      
        
          	25.3	
                  Sanctions

                

        

      

      
        
          	

                	(a)	
                  Each Obligor undertakes that it, and any Group Company or any Affiliate of any of them, or any director, officer, agent, employee or person acting on behalf
                      of the foregoing, is not a Restricted Person and does not act directly or indirectly on behalf of a Restricted Person.

                

        

      

      
        
          	

                	(b)	
                  Each Obligor shall, and shall procure that each Group Company and each Affiliate of any of them shall, not use any revenue or benefit derived from any
                      activity or dealing with a Restricted Person in discharging any obligation due or owing to the Finance Parties.

                

        

      

      
        
          	

                	(c)	
                  Each Obligor shall procure that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with any Finance
                      Party in its name or in the name of any Group Company or any Affiliate of any of them.

                

        

      

      
        
          	

                	(d)	
                  No Obligor, Group Company, Affiliate, nor any of their directors, officers or employees shall take any action, make any omission or use (directly or
                      indirectly) any proceeds of the Loan, in a manner that is in breach of Sanctions, or causes (or will cause) a breach of Sanctions by any Finance Party.

                

        

      

      
        
          	

                	(e)	
                  Each Obligor shall, and shall procure that each Group Company shall, to the extent permitted by law promptly upon becoming aware of them supply to the
                      Facility Agent details of any claim, action, suit, proceedings or investigation against it with respect to Sanctions by any Sanctions Authority.

                

        

      

      
        
          	

                	(f)	
                  Each Obligor shall not accept, obtain or receive any goods or services from any Restricted Person, except (without limiting Clause 25.2 (Compliance with laws)), to the extent relating to any warranties and/or guarantees given and/or liabilities incurred in respect of an
                      activity or dealing with a Restricted Person by an Obligor in accordance with this Agreement.

                

        

      

      
        
          	

                	(g)	
                  Each Party acknowledges and agrees that the Obligors do not undertake under paragraphs (a) to (f) (inclusive) above in favour of any Lender incorporated or
                      having its registered office in the Federal Republic of Germany and no such Lender shall have any right thereunder and shall be deemed not to be a party to the provisions of this Clause 25.3.

                

        

      

      
        
          	25.4	
                  Use of Proceeds

                

        

      

      The Obligors shall not, and shall procure that each Group Company and any Affiliate of any of them
          shall not, permit or authorise any other person to, directly or indirectly, use, lend, make payments of, contribute or otherwise make available, all or any part of the proceeds of the Facility or other transactions contemplated by this Agreement
          to fund or facilitate trade, business or other activities, nor to conduct, permit or allow any business activity related to the Collateral Vessels:

      
        
          	

                	(a)	
                  involving or for the benefit of any Restricted Person; or

                

        

      

      
        
          	

                	(b)	
                  in any other manner that could result in any Obligor or a Finance Party being in breach of any Sanctions or becoming a Restricted Person.

                

        

      

      
        

        57 | 123

        
          

      

      

      

      
        
          	25.5	
                  Title

                

        

      

      Each Obligor will hold legal title to and own the entire beneficial interest in its assets that are
          subject to Security in favour of the Finance Parties, including, as applicable, its Operating Accounts, its Earnings, Insurances and each Collateral Vessel.

      
        
          	25.6	
                  Taxation

                

        

      

      
        
          	

                	(a)	
                  Each Obligor shall (and shall procure that each Group Company ) pay and discharge all Taxes imposed upon it or its assets within the time period allowed
                      without incurring penalties unless and only to the extent that:

                

        

      

      
        
          	

                	(i)	
                  such payment is being contested in good faith;

                

        

      

      
        
          	

                	(i)	
                  adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements
                      delivered under Clause 23.1 (Financial statements); and

                

        

      

      
        
          	

                	(ii)	
                  such payment can be lawfully withheld and failure to pay those Taxes does not or is not reasonably likely to have a Material Adverse Effect.

                

        

      

      
        
          	

                	(b)	
                  None of the Obligors may and, to the extent it has or reasonably could be expected to have a Material Adverse Effect, no other Group Company may, change its
                      residence for Tax purposes without the prior written consent from the Facility Agent (not to be unreasonably withheld).

                

        

      

      
        
          	25.7	
                  Pari passu ranking

                

        

      

      Each Obligor shall ensure that at all times any unsecured and unsubordinated claims of a Finance
          Party (including a Swap Provider) against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of
          general application to companies.

      
        
          	25.8	
                  Merger

                

        

      

      No Obligor shall, without the prior written consent of the Facility Agent, enter into any
          amalgamation, demerger, merger, consolidation or corporate reconstruction, save in case of mergers within the Group and an Obligor is the surviving entity and always subject to preserving a pledge over shares in favour of the Security Agent (on
          behalf of the Finance Parties) over one shipowning company per Collateral Vessel.

      
        
          	25.9	
                  Listing

                

        

      

      The Ultimate Parent shall remain listed at the Oslo Stock Exchange or such other recognised stock
          exchange approved by the Facility Agent.

      
        
          	25.10	
                  Change of business

                

        

      

      Except with the prior written consent of the Facility Agent:

      
        
          	

                	(a)	
                  the Borrowers shall not engage in any other business than that immediately related to the owning, financing, chartering and operation of the Collateral
                      Vessels; and

                

        

      

      
        

        58 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  the Obligors will not cease to carry on or make any material change in all or any part of its business and activities thereto as presently conducted, or
                      carry on any other business, except for a similarly related business, or change the place of its jurisdiction or its organisation as presently conducted.

                

        

      

      
        
          	25.11	
                  Hedging arrangements

                

        

      

      
        
          	

                	(a)	
                  The Swap Providers shall have a first right of refusal in relation to interest hedging relating to any Collateral Vessel or the Facility on competitive
                      terms.

                

        

      

      
        
          	

                	(b)	
                  The Obligors shall not carry out derivative transactions for speculative purposes.

                

        

      

      
        
          	25.12	
                  Preservation of assets

                

        

      

      Each Obligor shall maintain and preserve all of its assets that are necessary or desirable, in the
          opinion of the Facility Agent, for the conduct of its business, as intended to be conducted at the date of this Agreement, in good working order and condition, ordinary wear and tear excepted.

      
        
          	25.13	
                  Financial Indebtedness restrictions

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall not incur, create or permit to subsist any Financial Indebtedness.

                

        

      

      
        
          	

                	(b)	
                  Paragraph (a) above does not apply to Financial Indebtedness:

                

        

      

      
        
          	

                	(i)	
                  incurred under the Finance Documents;

                

        

      

      
        
          	

                	(ii)	
                  incurred under any loans from any Guarantor or any other Borrower, provided that any Guarantor's or, as the case may be, any of the other Borrowers' claims
                      under such loans are subject to an Assignment of Intercompany Loan and fully subordinated to the claims of the Finance Parties under the Finance Documents; or

                

        

      

      
        
          	

                	(iii)	
                  consented to in writing by the Lenders.

                

        

      

      
        
          	25.14	
                  Negative pledge

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall not create or permit to subsist any Security over any of its assets and the shares in the Borrowers.

                

        

      

      
        
          	

                	(b)	
                  Paragraph (a) above does not apply to:

                

        

      

      
        
          	

                	(i)	
                  the Security under the Security Documents;

                

        

      

      
        
          	

                	(ii)	
                  in respect of any Collateral Vessel:

                

        

      

      
        
          	

                	(A)	
                  any liens for current crews' wages and salvage;

                

        

      

      
        
          	

                	(B)	
                  any ship repairer's or outfitter's possessory lien arising by operation of law and not exceeding USD 3,000,000; and

                

        

      

      
        
          	

                	(C)	
                  any other liens incurred in the ordinary course of operating any Collateral Vessel not exceeding USD 3,000,000; and (iii)any Security consented to in
                      writing by the Lenders.

                

           

          

          
            	

                  	(iii)	
                    any Security consented to in writing by the Lenders.

                      

                  

          

        

      

      
        

        59 | 123

        
          

      

      

      

      
        
          	25.15	
                  Sterna RCF

                

        

      

      
        
          	

                	(a)	
                  The Intermediate Parent shall procure that the Sterna RCF is amended to comply with the terms of this Agreement on terms satisfactory to the Facility Agent.

                

        

      

      
        
          	

                	(b)	
                  The Intermediate Parent may not make any payments to Sterna Finance Ltd. (or any party replacing Sterna Finance Ltd. as creditor) under the Sterna RCF or
                      any other loans from Affiliates of the Ultimate Parent following the occurrence of an Event of Default or otherwise in breach of the Subordination Statement.

                

        

      

      
        
          	

                	(c)	
                  The Intermediate Parent shall procure that:

                

        

      

      
        
          	

                	(i)	
                  until 12 months after the final Delivery Date of all the Initial Vessels and the Substitution Vessels, the credit under the Sterna RCF shall remain fully
                      and unconditionally available in a total minimum amount of USD 270,000,000 including minimum USD 30,000,000 to be freely available as working capital support to the Group; and

                

        

      

      
        
          	

                	(ii)	
                  thereafter, the freely and unconditionally available credit under the Sterna RCF may be reduced to USD 30,000,000, at terms acceptable to the Lenders.

                

        

      

      
        
          	25.16	
                  Financial support

                

        

      

      The Borrowers shall not make or grant any loans, guarantees or any other form of financial support,
          except financial support in the ordinary course of operation of the Collateral Vessels (it being understood however that intercompany loans, deposits or equity contributions within the Group ("Intragroup Indebtedness") shall be allowed, provided always that:

      
        
          	

                	(a)	
                  no Event of Default is in existence or will occur from such disposition;

                

        

      

      
        
          	

                	(b)	
                  after giving effect to such disposition, the Obligors will be in compliance with Clause 24 (Financial Covenants); and

                

        

      

      
        
          	

                	(c)	
                  the Intragroup Indebtedness obligations, shall pursuant to a separate undertaking between the relevant creditor and the Facility Agent rank behind and be
                      fully subordinated to any obligations under the Finance Documents and any of the Borrowers' claims under such loans, if against any other Borrower or Affiliate, are subject to an Assignment of Intercompany Loan.

                

        

      

      
        
          	25.17	
                  Distributions from the Ultimate Parent

                

        

      

      
        
          	

                	(a)	
                  Subject to the limitations listed in paragraph (b) below, the Ultimate Parent may:

                

        

      

      
        
          	

                	(i)	
                  declare, make or pay any dividend, charge, fee or other distribution (whether in cash or in kind) on or in respect of its share capital (or any class of its
                      share capital);

                

        

      

      
        
          	

                	(ii)	
                  pay any interest or repay any principal amount (or capitalised interest) on any debt to any of its shareholders;

                

        

      

      
        
          	

                	(iii)	
                  redeem, repurchase or repay any of its share capital or resolve to do so; or

                

        

      

      
        
          	

                	(iv)	
                  enter into any transaction or arrangement having a similar effect as described in paragraphs (i) to (iii).

                

        

      

      
        

        60 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  The distributions described in paragraph (a) above can only be carried out and effectuated if:

                

        

      

      
        
          	

                	(i)	
                  no Default is existing on the time when the distribution is to be made or would result from the making, payment or declaration of the distribution; and

                

        

      

      
        
          	

                	(ii)	
                  such distributions are in aggregate limited to 50% of its accumulated and consolidated annual net profits as from 1 January 2018 calculated on the basis of
                      the Ultimate Parent's audited consolidated financial statements made in accordance with IFRS; or

                

        

      

      
        
          	

                	(iii)	
                  as otherwise consented to in writing by the Facility Agent.

                

        

      

      
        
          	25.18	
                  Investments

                

        

      

      No Borrower shall make any investments or acquisitions of vessels or companies, other than related
          to:

      
        
          	

                	(a)	
                  the acquisition of the Collateral Vessels;

                

        

      

      
        
          	

                	(b)	
                  ordinary and scheduled maintenance of the Collateral Vessels; and

                

        

      

      
        
          	

                	(c)	
                  any other maintenance of the Collateral Vessels required in order to be in compliance with the provisions under this Agreement, including, but not limited
                      to, Clause 26.3 (Class).

                

        

      

      25.19 Disposals

      No Obligor shall enter into a single transaction or series of transactions (whether related or not
          and whether voluntary or involuntary) to sell, lease, transfer, or otherwise dispose of any of the Collateral Vessels or other asset being the subject of Security pursuant to the Security Documents, save for a sale of a Collateral Vessel in
          accordance with Clause 9.1 (Disposal or Total Loss).

      25.20 Financial year

      Except with the prior written consent of the Facility Agent, the Obligors will not, and shall
          procure that no other Group Company will, alter its financial year end from 31 December.

      25.21 Bank accounts

      The Borrowers shall open and maintain all its Operating Accounts with the Account Bank and ensure
          that all Earnings are paid to the Operating Accounts and the Borrowers may freely operate and make withdrawals from the Operating Accounts until the occurrence of a Default which is continuing.

      25.22 Arm's length basis

      No Obligor shall enter into any transaction with an Affiliate except on arm's length terms and for
          full market value.

      
        

        61 | 123

        
          

      

      

      

      
        
          	25.23	
                  EU Bail-in

                

        

      

      In the event that any Finance Document will be governed by the laws of a non-EEA Member Country,
          then to the extent the Facility Agent determines it is necessary such Finance Document shall either prior to its entry, or if already in force be amended to, contain the current form of EU bail-in provisions recommended by the Loan Market
          Association.

      
        
          	26	
                  VESSEL UNDERTAKINGS

                

        

      

      Each Obligor gives the undertakings in this Clause 26 to each Finance Party and such undertakings
          shall remain in force for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

      
        
          	26.1	
                  Vessel insurances

                

        

      

      
        
          	

                	(a)	
                  The Obligors shall keep the Collateral Vessels fully insured against such risks, including but not limited to, Hull and Machinery, Hull Interest and/or
                      Freight Interest, War Risks (including acts of terrorism, war risks P&I and piracy) and Protection & Indemnity (including maximum cover for pollution liability as normally adopted by the industry for similar vessels), in such
                      amounts and currencies, on such terms and with such reputable insurers, brokers or P&I clubs as the Facility Agent from time to time may approve. Norwegian Law to apply to all insurances other than P&I and freight, demurrage
                      and defence (FD&D) insurances, and Hull and Machinery covers to include the terms of the Nordic Marine Insurance Plan of 2013, latest version (as amended from time to time).

                

        

      

      
        
          	

                	(b)	
                  The insured value of each Collateral Vessel shall be at least equal to or greater than the higher of (i) its Fair Market Value or (ii) 120% of the relevant
                      Tranche and the aggregate insured value for all Collateral Vessels shall be at least equal to or greater than the higher of (i) the aggregate Fair Market Value for all Collateral Vessels or (ii) 120% of the Loans. The insured value
                      for Hull and Machinery for each Collateral Vessel to cover at least 80 % of the Fair Market Value of that Collateral Vessel, (ii) the insured value for Hull and Machinery combined with the Hull Interest and Freight Interest and for
                      War Risks for each Collateral Vessel shall always cover at least the Fair Market Value of that Collateral Vessel.

                

        

      

      
        
          	

                	(c)	
                  The Facility Agent (on behalf of the Finance Parties) will, for the cost of the Obligors, take out Mortgagee's Interest Insurance (MII) and Mortgagee
                      Interest Additional Perils (pollution) on such terms and in such amounts as the Facility Agent shall deem appropriate up to 120% of the Loans.

                

        

      

      
        
          	

                	(d)	
                  The Borrowers shall procure that the Security Agent (on behalf of the Finance Parties) is noted as a first priority mortgagee in the insurance contracts,
                      together with the confirmation from the underwriters to the Security Agent thereof that the notice of assignment with regard to the Insurances and the loss payable clauses are noted in the insurance contract and that standard letters
                      of undertaking are executed by the insurers and/or broker(s), as applicable.

                

        

      

      
        

        62 | 123

        
          

      

      

      

      
        
          	

                	(e)	
                  Within reasonable time (and no later than 7 days) prior to the expiry of the relevant Insurances, the Borrowers shall procure the delivery to the Facility
                      Agent of a certificate from the insurance broker(s) through whom the Insurances referred to in paragraph (a) have been renewed and taken out in respect of the Collateral Vessels with insurance values as required by paragraphs (b),
                      that such Insurances are in full force and effect and that the interests of the Security Agent (on behalf of the Finance Parties) have been noted by the relevant insurers.

                

        

      

      
        
          	

                	(f)	
                  If any of the Insurances referred to in paragraph (a), other than P&I or freight, demurrage and defence (FD&D) insurances, form part of a fleet
                      cover, the Borrowers shall procure that the insurers shall undertake to the Security Agent that they shall neither set-off against any claims in respect of the Collateral Vessels any premiums due in respect of other units under such
                      fleet cover or any premiums due for other insurances, nor cancel such Insurance for reason of non-payment of premiums for other units under such fleet cover or of premiums for such other Insurances.

                

        

      

      
        
          	

                	(g)	
                  The Borrowers shall ensure that each Collateral Vessel is always employed in conformity with the terms of the relevant insurances and comply with such
                      requirements as to extra premium or otherwise as the insurers may prescribe.

                

        

      

      
        
          	

                	(h)	
                  The Borrowers will not make any material change to the Insurances without the prior written consent of the Facility Agent (on behalf of the Lenders).

                

        

      

      
        
          	

                	(i)	
                  Each of the Insurances shall be reviewed, at the cost of the Borrowers, by the Lenders' insurance advisor on an annual basis on each date on which the
                      Insurances are due for renewal if so required by the Facility Agent. An insurance advisor will be appointed by the Facility Agent, at the Borrowers' cost, prior to each Drawdown Date, for the purpose of, inter alia, preparing an
                      insurance report.

                

        

      

      
        
          	26.2	
                  Notification

                

        

      

      The Borrowers shall immediately notify the Facility Agent of:

      
        
          	

                	(a)	
                  any accident or casualty to any Collateral Vessel involving repairs the cost of which is likely to exceed USD 3,000,000 or the equivalent thereof in any
                      other currency;

                

        

      

      
        
          	

                	(b)	
                  any occurrence in consequence whereof any Collateral Vessel has become or is likely to become a Total Loss;

                

        

      

      
        
          	

                	(c)	
                  any arrest or detention of any Collateral Vessel or the exercise or purported exercise of any lien on the Collateral Vessel;

                

        

      

      
        
          	

                	(d)	
                  any requirement or recommendation made in relation to any Collateral Vessel by any insurer or classification society or by any competent authority which is
                      not, or cannot be, immediately complied with;

                

        

      

      
        
          	

                	(e)	
                  any claim for a material breach of the ISM Code, the ISPS Code or Marpol being made against any Borrower, any charterer or any Manager or otherwise in
                      connection with any Collateral Vessel; or

                

        

      

      
        

        63 | 123

        
          

      

      

      

      
        
          	

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

                

        

      

      and the Borrowers will keep the Facility Agent advised on a regular basis and in such detail as the
          Facility Agent shall require on the relevant party's response to any of the above mentioned events or matters.

      
        
          	26.3	
                  Class

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall have each Collateral Vessel classified and maintained in the highest appropriate class notation available for vessels of the same age
                      and type with an Approved Classification Society, and at all times comply with the rules and regulations of the relevant classification society without any overdue recommendations and notations and shall immediately provide the
                      Facility Agent with copies of any survey reports being issued.

                

        

      

      
        
          	

                	(b)	
                  The Borrowers may not change (or permit the change of) the classification society of any Collateral Vessel without the prior written consent of the Facility
                      Agent unless to another Approved Classification Society.

                

        

      

      
        
          	26.4	
                  Flag

                

        

      

      The Borrowers shall maintain the registration of each Collateral Vessel in the name of the
          applicable Borrower with an Approved Ship Registry, and shall not change the name, flag or registration of the Collateral Vessel or parallel register the Collateral Vessel in another Approved Ship Registry without the prior written consent of all
          Lenders, such consent not to be unreasonably withheld, always subject to the Borrowers providing the Facility Agent with security over the Collateral Vessel, in form and substance acceptable to the Facility Agent.

      
        
          	26.5	
                  Inspection and class records

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall permit, and shall procure that any charterers permit, any person appointed by the Facility Agent to inspect each Collateral Vessel at
                      any time for the account of the Borrowers upon the Facility Agent giving prior written notice, always provided that such inspection shall not interfere with the normal operation and trading of the Collateral Vessel, provided however
                      that following an Event of Default, the Facility Agent is entitled to do an inspection whether or not it interferes with the trading and operation of the Collateral Vessel.

                

        

      

      
        
          	

                	(b)	
                  The Borrowers shall instruct the classification society to send to the Facility Agent, following a written request from the Facility Agent, copies of all
                      class records held by the classification society in relation to each Collateral Vessel.

                

        

      

      
        
          	26.6	
                  Repairs and alterations

                

        

      

      The Borrowers shall not make or permit any change or structural alteration to be made to any
          Collateral Vessel with a total cost exceeding or likely to exceed USD 3,000,000 and will not remove any material part from any Collateral Vessel without replacing such parts with parts of equal value, unless otherwise agreed with the charterer
          and subject to the consent of the Facility Agent, such consent not to be unreasonably withheld.

      
        

        64 | 123

        
          

      

      

      

      
        
          	26.7	
                  Compliance with international regulations and laws

                

        

      

      The Borrowers shall (and shall to its best abilities procure that any charterer and/or any Manager
          of any Collateral Vessel) at all times:

      
        
          	

                	(a)	
                  comply in all material respects with all international conventions and regulations relating to any Collateral Vessel, including:

                

        

      

      
        
          	

                	(i)	
                  the ISM Code;

                

        

      

      
        
          	

                	(ii)	
                  the ISPS Code; and

                

        

      

      
        
          	

                	(iii)	
                  Marpol;

                

        

      

      
        
          	

                	(b)	
                  comply in all material respects with any applicable national or international law, regulation, convention or treaty in a jurisdiction which an Obligor
                      conducts business or any Collateral Vessel will be operating, including such law, regulation, convention or treaty which relates to the pollution or damage of the environment or the conditions at the workplace;

                

        

      

      
        
          	

                	(c)	
                  comply in all material respects with any applicable law, regulation or requirement in the jurisdiction of the Approved Ship Registry where any Collateral
                      Vessel is registered;

                

        

      

      
        
          	

                	(d)	
                  comply in all respects with all Environmental Laws applicable to any of them or any Collateral Vessel, including without limitation, requirements relating
                      to manning and establishment of financial responsibility and to obtain and comply with all Environmental Approvals applicable to any of them and/or any of the Collateral Vessels;

                

        

      

      
        
          	

                	(e)	
                  in the event of hostilities in any part of the world (whether war is declared or not), not employ any Collateral Vessel in any zone which is declared a war
                      zone by any government or by the war risk insurers of the Collateral Vessel, unless the Borrowers has (at their own expense) effected any special, additional or modified insurance cover which shall be necessary or customary for first
                      class shipowners, and has provided evidence of such cover to the Facility Agent; and

                

        

      

      
        
          	

                	(f)	
                  obtain, maintain and ensure compliance with all requisite licenses, certificates, approvals and permits required under any such laws, rules and regulations
                      at all times valid and enforceable in all respects, including:

                

        

      

      
        
          	

                	(i)	
                  the Document of Compliance and Safety Management Certificate issued pursuant to the ISM Code in relation to each Collateral Vessel; and

                

        

      

      
        
          	

                	(ii)	
                  a valid and current International Ship Security Certificate issued under the ISPS Code.

                

        

      

      
        
          	26.8	
                  Maintenance

                

        

      

      The Borrowers shall procure that each Collateral Vessel is kept in good and safe condition and
          state of repair consistent with first class ownership and management practice.

      
        

        65 | 123

        
          

      

      

      

      
        
          	26.9	
                  Dismantling

                

        

      

      
        
          	

                	(a)	
                  The Obligors shall procure a safe sustainable and socially and environmentally responsible dismantling of any of their vessels that is taken out of service.

                

        

      

      
        
          	

                	(b)	
                  Each Borrower shall procure that the Collateral Vessel owned by it has, from the Delivery Date of that Collateral Vessel, obtained an Inventory of Hazardous
                      Material (IHM), in respect of the relevant Collateral Vessel owned by it, which shall be maintained and available throughout the lifespan of that Collateral Vessel.

                

        

      

      
        
          	

                	(c)	
                  Each Obligor confirms that as long as it is in a lending relationship with a Finance Party, it will ensure that any Collateral Vessel controlled by it or
                      sold to a intermediary with the intention of being scrapped, is recycled at a recycling yard which conducts its recycling business in a socially and environmentally responsible manner, in accordance with the provisions of The Hong
                      Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 and/or EU Ship Recycling Regulation of 20 November, 2013.

                

        

      

      
        
          	26.10	
                  Arrest

                

        

      

      The Borrowers shall pay and discharge when due:

      
        
          	

                	(a)	
                  all liabilities which give rise or may give rise to maritime or possessory liens on or claims enforceable against any Collateral Vessel, its Earnings or
                      Insurances;

                

        

      

      
        
          	

                	(b)	
                  all tolls, taxes, dues, fines, penalties and other amounts charged in respect of each Collateral Vessel, its Earnings or Insurances; and

                

        

      

      
        
          	

                	(c)	
                  all other outgoings whatsoever in respect of any Collateral Vessel, its Earnings and Insurances,

                

        

      

      
        
          	

                	(d)	
                  and upon receiving notice of arrest of any Collateral Vessel, or its detention or purported exercise of any lien or claim, the Borrowers shall procure its
                      release by providing bail or Security or otherwise as the circumstances may require.

                

        

      

      
        
          	26.11	
                  Fair Market Value

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall ensure that the aggregate Fair Market Value of the Collateral Vessels that have been delivered from the Yard is:

                

        

      

      
        
          	

                	(i)	
                  from the first Drawdown Date and at all times until the second anniversary thereof, in excess of 130%;

                

        

      

      
        
          	

                	(ii)	
                  from the second anniversary of the first Drawdown Date and until the fourth anniversary thereof, in excess of 135%; and

                

        

      

      
        
          	

                	(iii)	
                  thereafter; in excess of 140%,

                

        

      

      of the aggregate outstanding Loans.

      
        

        66 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  If any of the Collateral Vessels are employed under a charter contract, on terms and with a reputable third party charterer acceptable to the Facility
                      Agent, with a term extending beyond the Final Maturity Date, then the Fair Market Value requirement in respect of that Collateral Vessel shall be 120% of the related Tranche from commencement of that charter and until its expiry.

                

        

      

      
        
          	

                	(c)	
                  The Borrowers shall, if the Fair Market Value of the Collateral Vessels at any time falls below the values described in paragraph (a) and (b) above, within
                      thirty (30) days after the Facility Agent's notice thereof, post additional Security to the satisfaction of the Facility Agent, or, if failing to provide such additional Security, within ten (10) days thereafter prepay such portion of
                      the Loans in accordance with Clause 8.1 (Voluntary prepayment), that enables the Borrowers to satisfy the minimum value
                      requirement.

                

        

      

      
        
          	26.12	
                  Management

                

        

      

      
        
          	

                	(a)	
                  Each Collateral Vessel shall be managed by any Manager pursuant to the terms of the Management Agreement(s) or such other reputable manager(s) as agreed in
                      writing by the Facility Agent, and the Borrowers shall not make any material changes to the management of any Collateral Vessel without the prior written consent of the Facility Agent (not to be unreasonably withheld).

                

        

      

      
        
          	

                	(b)	
                  The Borrowers shall procure that each Manager issues a subordination statement, in form and substance acceptable to the Facility Agent, whereupon each
                      Manager fully subordinates its claims under the Management Agreements in respect of the Collateral Vessels to the claims of the Finance Parties under the Finance Documents.

                

        

      

      
        
          	26.13	
                  Restrictions on chartering etc.

                

        

      

      
        
          	

                	(a)	
                  The Borrowers shall not let a Collateral Vessel on bareboat charter for any period without the prior written consent of the Facility Agent, unless such
                      bareboat charter is to a Group Company and on arm's length terms but at a rate no less than an amount sufficient for the Borrowers to meet its payments obligations under the Finance Documents as they fall due.

                

        

      

      
        
          	

                	(b)	
                  Any charterparties in respect of a Collateral Vessel with a term exceeding twelve (12) months shall always be entered into directly between the relevant
                      Borrower and the third party charterer.

                

        

      

      
        
          	27	
                  EVENTS OF DEFAULT

                

        

      

      Each of the events or circumstances set out in this Clause 27 is an Event of Default (save for
          Clause 27.16 (Acceleration)).

      
        
          	27.1	
                  Non-payment

                

        

      

      Any Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the
          place and in the currency in which it is expressed to be payable unless:

      
        
          	

                	(a)	
                  its failure to pay is caused by:

                

        

      

      
        
          	

                	(i)	
                  an administrative or technical error; or

                

        

      

      
        
          	

                	(ii)	
                  a Disruption Event; and

                

        

      

      
        

        67 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  payment is made within three (3) Business Days of its due date.

                

        

      

      
        
          	27.2	
                  Financial covenants, Sanctions, Use of Proceeds, Title, Negative pledge, Distributions from the Ultimate Parent, Vessel Insurances and
                      Fair Market Value

                

        

      

      Any requirement of Clause 24 (Financial covenants), Clause 25.2 (c) (Compliance with laws), Clause 25.3 (Sanctions), Clause 25.4 (Use of Proceeds), Clause 25.5 (Title)25.5, Clause 25.14 (Negative pledge),
          Clause 25.17 (Distributions from the Ultimate Parent), Clause 26.1 (Vessel Insurances) or Clause 26.11 (Fair Market Value) is not satisfied.

      
        
          	27.3	
                  Other obligations

                

        

      

      
        
          	

                	(a)	
                  Any Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 27.2 (Financial covenants, Sanctions, Use of
                      Proceeds, Title, Negative pledge, Distributions from the Ultimate Parent, Vessel Insurances and Fair Market Value)).

                

        

      

      
        
          	

                	(b)	
                  No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within five (5) Business Days of the
                      earlier of (i) the Facility Agent giving notice to the Borrowers and (ii) any Obligor became or should have become aware of the failure to comply.

                

        

      

      
        
          	27.4	
                  Misrepresentation

                

        

      

      Any representation or statement made or deemed to be made by any Obligor in the Finance Documents
          or any other document delivered by or on behalf of the Obligors or in connection with any Finance Document is or proves to have been materially incorrect or misleading when made or deemed to be made.

      
        
          	27.5	
                  Cross default

                

        

      

      
        
          	

                	(a)	
                  Any Financial Indebtedness of any Obligor or any Group Company is not paid when due nor within any originally applicable grace period.

                

        

      

      
        
          	

                	(b)	
                  Any Financial Indebtedness of any Obligor or any Group Company is declared to be or otherwise becomes due and payable prior to its specified maturity as a
                      result of an event of default (however described).

                

        

      

      
        
          	

                	(c)	
                  Any commitment for any Financial Indebtedness of any Obligor or any Group Company is cancelled or suspended by a creditor of any Obligor or any Group
                      Company as a result of an event of default (however described).

                

        

      

      
        
          	

                	(d)	
                  Any creditor of any Obligor or any Group Company becomes entitled to declare any Financial Indebtedness of any Obligor or any Group Company due and payable
                      prior to its specified maturity as a result of an event of default (however described).

                

        

      

      
        
          	

                	(e)	
                  No Event of Default will occur under this Clause 27.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling
                      within paragraphs (a) to (d) above is less than USD 8,000,000 (or its equivalent in any other currency or currencies).

                

        

      

      For the purpose of this Clause 27.5 (Cross default), "Financial Indebtedness" shall only include lease and charter contracts to the extent these would be considered a "financial lease" or "Financial Indebtedness" pursuant to IAS 17,
          irrespective of IFRS 16 later becoming effective.

      
        

        68 | 123

        
          

      

      

      

      
        
          	27.6	
                  Insolvency

                

        

      

      
        
          	

                	(a)	
                  Any of the Obligors or any Group Company is, or for the purpose of applicable law is deemed to be, unable to pay its debts as they fall due or becomes
                      insolvent or admits inability or intention not to pay its debts as they fall due.

                

        

      

      
        
          	

                	(b)	
                  Any of the Obligors or any Group Company suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties,
                      commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

                

        

      

      
        
          	

                	(c)	
                  A moratorium is declared in respect of any indebtedness of any Obligor or any Group Company.

                

        

      

      
        
          	27.7	
                  Insolvency proceedings

                

        

      

      Any corporate action, legal proceedings or other procedure or step is taken in relation to:

      
        
          	

                	(a)	
                  the preliminary suspension of payments, suspension of payments, bankruptcy, a moratorium of any indebtedness, winding-up, dissolution, administration or
                      reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any of the Obligors or any Group Company;

                

        

      

      
        
          	

                	(b)	
                  a composition, compromise, assignment or arrangement with any creditor of any of the Obligors or any Group Company;

                

        

      

      
        
          	

                	(c)	
                  the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any of the
                      Obligors or any Group Company or any of its assets; or

                

        

      

      
        
          	

                	(d)	
                  enforcement of any Security over any assets of any of the Obligors or any Group Company.

                

        

      

      
        
          	27.8	
                  Creditors' process

                

        

      

      Any expropriation, attachment, sequestration, distress or execution or any analogous process in any
          jurisdiction affects any asset or assets of any Obligor or any Group Company unless, within 30 days after the Obligor became aware of the same, (i) the same is discharged or (ii) the Finance Parties have been provided with additional security in
          such form and for such amounts as the Finance Parties may require.

      
        
          	27.9	
                  Unlawfulness and invalidity

                

        

      

      It is or becomes unlawful for any Obligor and/or any of the parties to a Security Document to
          perform any of their obligations under the Finance Documents or any Finance Document ceases to be in full force and effect or any Security under the Security Documents ceases to be legal, valid, binding, enforceable or effective or is alleged by
          a party to it (other than a Finance Party) to be ineffective.

      
        
          	27.10	
                  Liens

                

        

      

      Any maritime lien or other lien, arrest, distress or similar charge is levied upon or against any
          Collateral Vessel and, within ten (10) Business Days after any Obligor became aware of the same:

      
        

        69 | 123

        
          

      

      

      

      
        
          	

                	(a)	
                  is not discharged; or

                

        

      

      
        
          	

                	(b)	
                  the Finance Parties have been provided with additional security in such form and for such amounts as the Finance Parties may require.

                

        

      

      
        
          	27.11	
                  Cessation of business

                

        

      

      Any Obligor ceases (or threatens to cease to carry on) all its business.

      
        
          	27.12	
                  Permits

                

        

      

      Any license, consent, permission or approval required in order to enforce, complete or perform any
          of the Finance Documents is revoked, terminated or modified having a Material Adverse Effect.

      
        
          	27.13	
                  Failure to comply with final judgement

                

        

      

      Any Obligor fails to, within five (5) Business Days after becoming obliged to do so, comply with or
          pay any sum due from it under any final judgement or final order, unless such award is for an amount less than USD 8,000,000 or the sum due is covered by insurance and the insurers have confirmed cover and liability to pay under the relevant
          insurance.

      
        
          	27.14	
                  Litigation

                

        

      

      There is current, pending or, threatened in writing any claims, litigation, arbitration or
          administrative proceedings against an Obligor or its assets which might have a Material Adverse Effect.

      
        
          	27.15	
                  Material adverse change

                

        

      

      Any event or circumstance occurs which, in the opinion of the Majority Lenders has had or could
          reasonably be expected to have a Material Adverse Effect.

      
        
          	27.16	
                  Acceleration

                

        

      

      On and at any time after the occurrence of an Event of Default which is continuing the Facility
          Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrowers:

      
        
          	

                	(a)	
                  cancel the Commitments at which time they shall immediately be cancelled;

                

        

      

      
        
          	

                	(b)	
                  declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Agreement, be immediately due
                      and payable, at which time they shall become immediately due and payable;

                

        

      

      
        
          	

                	(c)	
                  enforce any or all Security under the Security Documents; and/or

                

        

      

      
        
          	

                	(d)	
                  exercise any or all of the rights, remedies, powers or discretions granted to the Facility Agent or the Finance Parties under the Finance Documents or by
                      any applicable law or regulation or otherwise as a consequence of such Event of Default.

                

        

      

      SECTION 9

      CHANGES TO PARTIES

      
        
          	28	
                  CHANGES TO THE LENDERS

                

        

      

      
        

        70 | 123

        
          

      

      

      

      
        
          	28.1	
                  Assignments and transfers by the Lenders

                

        

      

      Subject to this Clause 28, a Lender (the "Existing Lender") may:

      
        
          	

                	(a)	
                  assign any of its rights; or

                

        

      

      
        
          	

                	(b)	
                  transfer by novation any of its rights and obligations,

                   

                    

                  under any Finance Document to another bank or financial institution, a trust, fund or other entity that is regularly engaged in or established for the
                      purpose of making, purchasing or investing in loans, securities or other financial assets (the "New Lender").

                

        

      

      
        
          	28.2	
                  Conditions of assignment or transfer

                

        

      

      
        
          	

                	(a)	
                  An Existing Lender may not transfer any of its rights or obligations to a New Lender without the Ultimate Parent's consent, such consent not to be
                      unreasonably withheld or delayed and not to be required if the transfer is:

                

        

      

      
        
          	

                	(i)	
                  to another Lender or an Affiliate of a Lender or another bank or financial institution and of a minimum amount of USD 10,000,000;

                

        

      

      
        
          	

                	(ii)	
                  to another bank or financial institution, a trust, fund or other entity that has an exposure in the shipping sector;

                

        

      

      
        
          	

                	(iii)	
                  to a trust, fund or other entity that is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or
                      other financial assets, which is advised by, or the assets of which are managed by or serviced by a Lender; or

                

        

      

      
        
          	

                	(iv)	
                  made at a time when an Event of Default has occurred and is continuing.

                

        

      

      
        
          	

                	(b)	
                  The Ultimate Parent shall be deemed to have given its consent if the Ultimate Parent has not expressly rejected any proposal within five (5) Business Days
                      from the request of an Existing Lender.

                

        

      

      
        
          	

                	(c)	
                  An assignment will only be effective on the performance by the Facility Agent of all necessary "know your customer" or other similar checks under all
                      applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Facility Agent shall promptly notify to the Existing Lender and the New Lender.

                

        

      

      
        
          	

                	(d)	
                  A transfer will only be effective if the procedure set out in Clause 28.5 (Procedure for transfer) is complied with.

                

        

      

      
        
          	

                	(e)	
                  Shareholders or Affiliates of any Obligor or Group Member may not become a Lender.

                

        

      

      
        
          	28.3	
                  Assignment or transfer fee

                

        

      

      Unless the Facility Agent otherwise agrees and excluding an assignment or transfer to an Affiliate
          of a Lender, the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Facility Agent (for its own account) a fee of USD 5000.

      
        

        71 | 123

        
          

      

      

      

      
        
          	28.4	
                  Limitation of responsibility of Existing Lenders

                

        

      

      
        
          	

                	(a)	
                  Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

                

        

      

      
        
          	

                	(i)	
                  the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents and the Security under the Security Documents or any other
                      documents;

                

        

      

      
        
          	

                	(ii)	
                  the financial condition of any Obligor;

                

        

      

      
        
          	

                	(iii)	
                  the performance and observance by any Obligor or any other Group Company of its obligations under the Finance Documents or any other documents; or

                

        

      

      
        
          	

                	(iv)	
                  the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

                    

                   

                    

                  and any representations or warranties implied by law are excluded.

                

        

      

      
        
          	

                	(b)	
                  Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

                

        

      

      
        
          	

                	(i)	
                  has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of any Obligor and its related
                      entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender or any other Finance Party in connection with any Finance Document; and

                

        

      

      
        
          	

                	(ii)	
                  will continue to make its own independent appraisal of the creditworthiness of any Obligor and its related entities whilst any amount is or may be
                      outstanding under the Finance Documents or any Commitment is in force.

                

        

      

      
        
          	

                	(c)	
                  Nothing in any Finance Document obliges an Existing Lender to:

                

        

      

      
        
          	

                	(i)	
                  accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 28; or

                

        

      

      
        
          	

                	(ii)	
                  support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by an Obligor of its obligations under the Finance
                      Documents or otherwise.

                

        

      

      
        
          	28.5	
                  Procedure for transfer

                

        

      

      
        

        72 | 123

        
          

      

      

      

      
        
          	

                	(a)	
                  Subject to the conditions set out in Clause 28.2 (Conditions

                        of assignment or transfer) a transfer is effected in accordance with paragraph (c) below when the Facility Agent executes a duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The
                      Facility Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in
                      accordance with the terms of this Agreement, execute that Transfer Certificate.

                

        

      

      
        
          	

                	(b)	
                  The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it
                      has complied with all necessary "know your customer" or similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

                

        

      

      
        
          	

                	(c)	
                  On the Transfer Date:

                

        

      

      
        
          	

                	(i)	
                  to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents,
                      each Obligor and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the
                      "Discharged Rights and Obligations");

                

        

      

      
        
          	

                	(ii)	
                  each Obligor and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged
                      Rights and Obligations only insofar as the Obligors and the New Lender have assumed and/or acquired the same in place of the Obligors and the Existing Lender;

                

        

      

      
        
          	

                	(iii)	
                  the Facility Agent, the Arrangers, the New Lender and the other Lenders shall acquire the same rights and assume the same obligations between themselves and
                      in respect of the Finance Documents as they would have acquired and assumed had the New Lender been an Original Lender with the rights, and/or obligations acquired or assumed by it as a result of the transfer and to that extent the
                      Facility Agent, the Arrangers and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and

                

        

      

      
        
          	

                	(iv)	
                  the New Lender shall become a Party as a "Lender".

                

        

      

      
        
          	28.6	
                  Copy of Transfer Certificate

                

        

      

      The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer
          Certificate, send to the Ultimate Parent a copy of that Transfer Certificate.

      
        
          	28.7	
                  Security over Lender's rights

                

        

      

      Notwithstanding Clause 28.1 (Assignments and transfers by the Lenders), a Lender may at any time sell, transfer, assign, novate, pledge, have assumed all or part of its rights and/or otherwise use as collateral any of its rights under the
          Finance Documents to or for the benefit of a member of the European System of Central Banks.

      
        

        73 | 123

        
          

      

      

      

      
        
          	29	
                  CHANGES TO THE OBLIGORS

                

        

      

      No Obligor may assign any of its rights or transfer any of its rights or obligations under the
          Finance Documents.

      SECTION 10

      THE FINANCE PARTIES

      
        
          	30	
                  ROLE OF THE FACILITY AGENT, SECURITY AGENT, THE ARRANGERS AND OTHERS

                

        

      

      
        
          	30.1	
                  Appointment of the Facility Agent and Security Agent

                

        

      

      
        
          	

                	(a)	
                  Each Finance Party appoints the Facility Agent to act as its agent and the Security Agent to act as security agent under and in connection with the Finance
                      Documents.

                

        

      

      
        
          	

                	(b)	
                  Each Finance Party authorises each of the Facility Agent and the Security Agent to exercise the rights, powers, authorities and discretions specifically
                      given to the Facility Agent and the Security Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

                

        

      

      
        
          	30.2	
                  Duties of the Facility Agent and Security Agent

                

        

      

      
        
          	

                	(a)	
                  Subject to paragraph (b) below, each of the Facility Agent and the Security Agent shall promptly forward to a Party the original or a copy of any document
                      which is delivered to the Facility Agent or the Security Agent for that Party by any other Party.

                

        

      

      
        
          	

                	(b)	
                  Without prejudice to Clause 28.6 (Copy of Transfer
                        Certificate), paragraph (a) above shall not apply to any Transfer Certificate.

                

        

      

      
        
          	

                	(c)	
                  Except where a Finance Document specifically provides otherwise, neither the Facility Agent nor the Security Agent is obliged to review or check the
                      adequacy, accuracy or completeness of any document it forwards to another Party.

                

        

      

      
        
          	

                	(d)	
                  If the Facility Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a
                      Default, it shall promptly notify the other Finance Parties.

                

        

      

      
        
          	

                	(e)	
                  If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the
                      Facility Agent or the Arrangers) under this Agreement it shall promptly notify the other Finance Parties.

                

        

      

      
        
          	

                	(f)	
                  The Facility Agent shall provide to the Borrowers at its request, a list (which may be in electronic form) setting out the names of the Lenders as at the
                      date of that request, their respective Commitments and contact details.

                

        

      

      
        
          	

                	(g)	
                  The Facility Agent's and the Security Agent's duties under the Finance Documents are solely mechanical and administrative in nature.

                

        

      

      
        

        74 | 123

        
          

      

      

      

      
        
          	

                	(h)	
                  The Facility Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to
                      be a party (and no others shall be implied).

                

        

      

      
        
          	30.3	
                  Role of the Arrangers

                

        

      

      Except as specifically provided in the Finance Documents, the Arrangers have no obligations of any
          kind to any other Party under or in connection with any Finance Document.

      
        
          	30.4	
                  Limited fiduciary duties

                

        

      

      
        
          	

                	(a)	
                  Save as provided in paragraphs (b) and (c) below, nothing in this Agreement constitutes the Facility Agent, the Security Agent, and/or the Arrangers as a
                      trustee or fiduciary of any other person.

                

        

      

      
        
          	

                	(b)	
                  None of the Facility Agent, the Security Agent or the Arrangers shall be bound to account to any Lender for any sum or the profit element of any sum
                      received by it for its own account.

                

        

      

      
        
          	

                	(c)	
                  The Security Agent will act solely as trustee for the Finance Parties in carrying out its functions under the Security Documents and this Agreement and will
                      exercise the same care as it would in dealing with a credit for its own account.

                

        

      

      
        
          	30.5	
                  Business with the Group

                

        

      

      Each Finance Party may accept deposits from, lend money to and generally engage in any kind of
          banking or other business with any Group Company.

      
        
          	30.6	
                  Rights and discretions

                

        

      

      
        
          	

                	(a)	
                  The Facility Agent and the Security Agent may:

                

        

      

      
        
          	

                	(i)	
                  rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorised;

                

        

      

      
        
          	

                	(ii)	
                  assume that:

                

        

      

      
        
          	

                	(A)	
                  any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders are duly given in accordance with the terms of the Finance
                      Documents; and

                

        

      

      
        
          	

                	(B)	
                  unless it has received notice of revocation, that those instructions have not been revoked; and

                

        

      

      
        
          	

                	(iii)	
                  rely on a certificate from any person:

                

        

      

      
        
          	

                	(A)	
                  as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or

                

        

      

      
        
          	

                	(B)	
                  to the effect that such person approves of any particular dealing, transaction, step, action or thing,

                

        

      

      as sufficient evidence that that is the case and, in the case of paragraph (A) above, may assume
          the truth and accuracy of that certificate.

      
        

        75 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  The Facility Agent and the Security Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

                

        

      

      
        
          	

                	(i)	
                  no Default has occurred (unless it has actual knowledge of a Default arising under Clause 27.1 (Non-payment));

                

        

      

      
        
          	

                	(ii)	
                  any right, power, authority or discretion vested in any Party or any group of Lenders has not been exercised;

                

        

      

      
        
          	

                	(iii)	
                  any notice or request made by the Ultimate Parent (other than a Drawdown Request or Selection Notice) is made on behalf of and with the consent and
                      knowledge of all the Obligors;.

                

        

      

      
        
          	

                	(c)	
                  The Facility Agent and the Security Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other
                      professional advisers or experts.

                

        

      

      
        
          	

                	(d)	
                  Without prejudice to the generality of paragraph (c) above or paragraph (e) below, each of the Facility Agent and the Security Agent may at any time engage
                      and pay for the services of any lawyers to act as independent counsel to the Facility Agent and/or the Security Agent (and so separate from any lawyers instructed by the Lenders) if the Facility Agent and/or the Security Agent in its
                      reasonable opinion deems this to be desirable.

                

        

      

      
        
          	

                	(e)	
                  The Facility Agent and the Security Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional
                      advisers or experts (whether obtained by the Facility Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its
                      so relying.

                

        

      

      
        
          	

                	(f)	
                  The Facility Agent and the Security Agent may act in relation to the Finance Documents through its officers, employees and agents and the Facility Agent
                      shall not:

                

        

      

      
        
          	

                	(i)	
                  be liable for any error of judgment made by any such person; or

                

        

      

      
        
          	

                	(ii)	
                  be bound to supervise, or be in any way responsible for, any loss incurred by reason of misconduct, omission or default on the part of any such person,
                      unless such error or such loss was directly caused by the Facility Agent's and/or Security Agent's gross negligence or wilful misconduct.

                

        

      

      
        
          	

                	(g)	
                  Unless a Finance Document expressly provides otherwise the Facility Agent and the Security Agent may disclose to any other Party any information it
                      reasonably believes it has received as agent under this Agreement.

                

        

      

      
        
          	

                	(h)	
                  Without prejudice to the generality of paragraph (g) above, the Facility Agent and the Security Agent:

                

        

      

      
        
          	

                	(i)	
                  may disclose; and

                

        

      

      
        

        76 | 123

        
          

      

      

      

      
        
          	

                	(ii)	
                  on the written request of the Ultimate Parent or the Majority Lenders shall, as soon as reasonably practicable, disclose, the identity of a Defaulting
                      Lender to the Ultimate Parent and to the other Finance Parties.

                

        

      

      
        
          	

                	(i)	
                  Notwithstanding any other provision of any Finance Document to the contrary, none of the Facility Agent, the Security Agent or the Arrangers is obliged to
                      do or omit to do anything if it would, or might in its reasonable opinion, constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

                

        

      

      
        
          	

                	(j)	
                  The Agent may not disclose to any Finance Party any details of the rate notified to the Agent by any Lender or the identity of any such Lender for the
                      purpose of paragraph (a)(ii) of Clause 13.2 (Market disruption).

                

        

      

      
        
          	

                	(k)	
                  Notwithstanding any provision of any Finance Document to the contrary, the Facility Agent and the Security Agent are not obliged to expend or risk its own
                      funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such
                      funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it.

                

        

      

      
        
          	30.7	
                  Majority Lenders' instructions

                

        

      

      
        
          	

                	(a)	
                  Unless a contrary indication appears in a Finance Document, the Facility Agent and the Security Agent shall (i) exercise any right, power, authority or
                      discretion vested in it as Facility Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested
                      in it as Facility Agent or the Security Agent) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders.

                

        

      

      
        
          	

                	(b)	
                  Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties.

                

        

      

      
        
          	

                	(c)	
                  The Facility Agent and the Security Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the
                      Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

                

        

      

      
        
          	

                	(d)	
                  In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the Facility Agent and the Security Agent may act (or refrain
                      from taking action) as it considers to be in the best interest of the Lenders.

                

        

      

      
        
          	

                	(e)	
                  The Facility Agent and the Security Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender's consent) in any legal or
                      arbitration proceedings relating to any Finance Document. This paragraph (e) shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Security Documents or
                      enforcement of the Security or Security Documents.

                

        

      

      
        

        77 | 123

        
          

      

      

      

      
        
          	30.8	
                  Responsibility for documentation

                

        

      

      None of the Facility Agent, Security Agent or the Arrangers is responsible for:

      
        
          	

                	(a)	
                  the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Facility Agent, the Security Agent, the Arrangers,
                      the Borrowers or any other person given in or in connection with any Finance Document or the transactions contemplated in the Finance Documents;

                

        

      

      
        
          	

                	(b)	
                  the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Security under any Security Document or any other
                      agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document or the Security under any Security Document;

                

        

      

      
        
          	

                	(c)	
                  any determination as to whether any information provided or to be provided to any Finance Party is non-public information the use of which may be regulated
                      or prohibited by applicable law or regulation relating to insider dealing or otherwise.

                

        

      

      
        
          	30.9	
                  Exclusion of liability

                

        

      

      
        
          	

                	(a)	
                  Without limiting paragraph (b) below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the
                      Facility Agent and the Security Agent, none of the Facility Agent nor the Security Agent will be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:

                

        

      

      
        
          	

                	(i)	
                  any damages any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any
                      action under or in connection with any Finance Document or the Security created by the Security Documents, unless directly caused by its gross negligence or wilful misconduct;

                

        

      

      
        
          	

                	(ii)	
                  exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document, the Security Documents
                      or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or the Security pursuant to the Security Documents; or

                

        

      

      
        
          	

                	(iii)	
                  without prejudice to the generality of paragraphs (i) and (ii) above, any damages, costs or losses to any person, any diminution in value or any liability
                      whatsoever arising as a result of:

                

        

      

      
        
          	

                	(A)	
                  any act, event or circumstance not reasonably within its control; or

                

        

      

      
        
          	

                	(B)	
                  the general risks of investment in, or the holding of assets in, any jurisdiction,

                

        

      

      
        

        78 | 123

        
          

      

      

      

      including (in each case and without limitation) such damages, costs, losses, diminution in value
          or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the
          value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or
          strikes or industrial action.

      
        
          	

                	(b)	
                  No Party (other than the Facility Agent or the Security Agent (as applicable)) may take any proceedings against any officer, employee or agent of the
                      Facility Agent or the Security Agent, in respect of any claim it might have against the Facility Agent or the Security Agent, or in respect of any act or omission of any kind by that officer, employee or agent in relation to any
                      Finance Document or any Transaction Document and any officer, employee or agent of the Facility Agent or the Security Agent may rely on this Clause 30.9.

                

        

      

      
        
          	

                	(c)	
                  The Facility Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance
                      Documents to be paid by the Facility Agent if the Facility Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system
                      used by the Facility Agent for that purpose.

                

        

      

      
        
          	

                	(d)	
                  Nothing in this Agreement shall oblige the Facility Agent or the Arranger to carry out:

                

        

      

      
        
          	

                	(i)	
                  any "know your customer" or other checks in relation to any person; or

                

        

      

      
        
          	

                	(ii)	
                  any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Lender or for any Affiliate of any Lender,

                

        

      

      on behalf of any Lender and each Lender confirms to the Agent and the Arranger that it is solely
          responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent or the Arranger.

      
        

        79 | 123

        
          

      

      

      

      
        
          	

                	(e)	
                  Without prejudice to any provision of any Finance Document excluding or limiting the Facility Agent's liability, any liability of the Facility Agent arising
                      under or in connection with any Finance Document or the Security created pursuant to the Security Documents shall be limited to the amount of actual loss which has been finally judicially determined to have been suffered (as
                      determined by reference to the date of default of the Facility Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Facility
                      Agent at any time which increase the amount of that loss. In no event shall the Facility Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or
                      consequential damages, whether or not the Facility Agent has been advised of the possibility of such loss or damages.

                

        

      

      
        
          	30.10	
                  Lenders' indemnity to the Facility Agent and Security Agent

                

        

      

      Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments
          are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Facility Agent and the Security Agent, within three (3) Business Days of demand, against any cost, loss or liability incurred by the
          Facility Agent or the Security Agent (otherwise than by reason of the Facility Agent's or the Security Agent's gross negligence or wilful misconduct) in acting as Facility Agent or Security Agent under the Finance Documents (unless the Facility
          Agent or the Security Agent has been reimbursed by the Borrowers pursuant to a Finance Document).

      
        
          	30.11	
                  Resignation of the Facility Agent or Security Agent

                

        

      

      
        
          	

                	(a)	
                  The Facility Agent or the Security Agent may resign and appoint one of its Affiliates as successor by giving notice to the Lenders and the Borrower.

                

        

      

      
        
          	

                	(b)	
                  Alternatively, the Facility Agent or the Security Agent may resign by giving 30 days' notice to the Lenders and the Ultimate Parent, in which case the
                      Majority Lenders (after consultation with the Ultimate Parent) may appoint a successor Facility Agent or Security Agent.

                

        

      

      
        
          	

                	(c)	
                  If the Majority Lenders have not appointed a successor Facility Agent or Security Agent in accordance with paragraph (b) above within 20 days after notice
                      of resignation was given, the retiring Facility Agent or Security Agent (after consultation with the Ultimate Parent) may appoint a successor Facility Agent or Security Agent.

                

        

      

      
        

        80 | 123

        
          

      

      

      

      
        
          	

                	(d)	
                  If the Facility Agent or Security Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as
                      facility agent or security agent and the Facility Agent or the Security Agent is entitled to appoint a successor Facility Agent or Security Agent under paragraph (c) above, the Facility Agent or Security Agent, as the case may be, may
                      (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Facility Agent or Security Agent, as the case may be, to become a party to this Agreement as Facility Agent or Security
                      Agent, as the case may be) agree with the proposed successor Facility Agent or Security Agent, as the case may be, amendments to this Clause 30 and any other term of this Agreement dealing with the rights or obligations of the
                      Facility Agent or Security Agent, as the case may be, consistent with then current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this
                      Agreement which are consistent with the successor Facility Agent's or Security Agent's, as the case may, be normal fee rates and those amendments will bind the Parties.

                

        

      

      
        
          	

                	(e)	
                  The retiring Facility Agent or Security Agent shall, at its own cost, make available to the successor Facility Agent or Security Agent such documents and
                      records and provide such assistance as the successor Facility Agent or Security Agent may reasonably request for the purposes of performing its functions as Facility Agent or Security Agent under the Finance Documents.

                

        

      

      
        
          	

                	(f)	
                  The Facility Agent's or Security Agent's resignation notice shall only take effect upon the appointment of a successor.

                

        

      

      
        
          	

                	(g)	
                  Upon the appointment of a successor, the retiring Facility Agent or Security Agent shall be discharged from any further obligation in respect of the Finance
                      Documents but shall remain entitled to the benefit of this Clause 30. Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an
                      original Party.

                

        

      

      
        
          	

                	(h)	
                  The Facility Agent or Security Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to
                      appoint a successor Facility Agent or Security pursuant to paragraph (c) above) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Facility Agent or Security Agent
                      under the Finance Documents, either:

                

        

      

      
        
          	

                	(i)	
                  the Facility Agent or Security Agent fails to respond to a request under Clause 15.6 (FATCA Information) and a Lender reasonably believes that the Facility Agent or Security Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

                

        

      

      
        
          	

                	(ii)	
                  the information supplied by the Facility Agent or Security Agent pursuant to Clause 15.6 (FATCA Information) indicates that the Facility Agent or Security Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

                

        

      

      
        

        81 | 123

        
          

      

      

      

      
        
          	

                	(iii)	
                  the Facility Agent or Security Agent notifies the Borrowers and the Lenders that the Facility Agent or Security Agent will not be (or will have ceased to
                      be) a FATCA Exempt Party on or after that FATCA Application Date;

                

        

      

      and (in each case) a Lender believes that a Party may be required to make a FATCA Deduction that
          would not be required if the Facility Agent or Security Agent were a FATCA Exempt Party, and that Lender, by notice to the Facility Agent or Security Agent, requires it to resign.

      
        
          	30.12	
                  Replacement of the Facility Agent or Security Agent

                

        

      

      
        
          	

                	(a)	
                  After consultation with the Ultimate Parent, the Majority Lenders may, by giving 30 days' notice to the Facility Agent or Security Agent, replace the
                      Facility Agent or Security Agent by appointing a successor Facility Agent or Security Agent.

                

        

      

      
        
          	

                	(b)	
                  The retiring Facility Agent or Security Agent shall make available to the successor Facility Agent or Security Agent such documents and records and provide
                      such assistance as the successor Facility Agent or Security Agent may reasonably request for the purposes of performing its functions as Facility Agent or Security Agent under the Finance Documents.

                

        

      

      
        
          	

                	(c)	
                  The appointment of the successor Facility Agent or Security Agent shall take effect on the date specified in the notice from the Majority Lenders to the
                      retiring Facility Agent or Security Agent. As from this date, the retiring Facility Agent or Security Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit
                      of this Clause 30 (and any agency fees for the account of the retiring Facility Agent or Security Agent shall cease to accrue from (and shall be payable on) that date).

                

        

      

      
        
          	

                	(d)	
                  Any successor Facility Agent or Security Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would
                      have had if such successor had been an original Party.

                

        

      

      
        
          	30.13	
                  Relationship with the Lenders

                

        

      

      
        
          	

                	(a)	
                  The Facility Agent and Security Agent may treat each Lender as a Lender, inter alia entitled to or liable for any payment due under any Finance Document,
                      unless it has received not less than five (5) Business Days' prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

                

        

      

      
        
          	

                	(b)	
                  Each Lender shall supply the Facility Agent or Security Agent with any information that the Facility Agent or Security Agent may reasonably specify as being
                      necessary or desirable to enable the Facility Agent or Security Agent to perform its functions as Facility Agent or Security Agent.

                

        

      

      
        
          	

                	(c)	
                  Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made
                      or despatched to that Lender under the Finance Documents. Such notice shall contain the relevant contact details required to enable the sending and receipt of information.

                

        

      

      
        

        82 | 123

        
          

      

      

      

      
        
          	30.14	
                  Confidentiality

                

        

      

      
        
          	

                	(a)	
                  In acting as agent for the Finance Parties, the Facility Agent and the Security Agent shall be regarded as acting through its agency division which shall be
                      treated as a separate entity from any other of its divisions or departments.

                

        

      

      
        
          	

                	(b)	
                  If information is received by another division or department of the Facility Agent or the Security Agent, it may be treated as confidential to that division
                      or department and the Facility Agent or Security Agent shall not be deemed to have notice of it.

                

        

      

      
        
          	

                	(c)	
                  Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility Agent, the Security Agent nor any Arranger is obliged to
                      disclose to any other person (i) any confidential information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty.

                

        

      

      
        
          	

                	(d)	
                  Notwithstanding any other provision of any Finance Document to the contrary, any Finance Party may disclose to any Finance Party and /or its Affiliates and
                      potential assignees, any information it has received from any Obligor or concerning any Obligor (including information of confidential nature or described as confidential by an Obligor) which:

                

        

      

      
        
          	

                	(i)	
                  the Finance Party becomes aware of in its capacity as, or for the purpose of becoming, a Finance Party under the Finance Documents;

                

        

      

      
        
          	

                	(ii)	
                  is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents; or

                

        

      

      
        
          	

                	(iii)	
                  provided that the Finance Party reasonably believes such information is of relevance to the other Finance Parties in their capacity as Finance Parties under
                      the Finance Documents.

                

        

      

      
        
          	30.15	
                  Credit appraisal by the Lenders

                

        

      

      Without affecting the responsibility of the Obligors for information supplied by any of them or on
          their behalf, each Lender confirms to the Facility Agent, the Security Agent and the Arrangers that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or
          in connection with any Finance Document.

      
        
          	30.16	
                  Reference Banks

                

        

      

      If a Reference Bank ceases to be a Lender, the Facility Agent shall (in consultation with the
          Borrower) appoint another Lender to replace that Reference Bank.

      
        
          	30.17	
                  Role of Reference Banks

                

        

      

      
        
          	

                	(a)	
                  No Reference Bank is under any obligation to provide a quotation or any other information to the Facility Agent.

                

        

      

      
        
          	

                	(b)	
                  No Reference Bank will be liable for any action taken by it under or in connection with any Finance Document, or for any Reference Bank Quotation, unless
                      directly caused by its gross negligence or wilful misconduct.

                

        

      

      
        

        83 | 123

        
          

      

      

      

      
        
          	

                	(c)	
                  No Party (other than the relevant Reference Bank) may take any proceedings against any officer, employee or agent of any Reference Bank in respect of any
                      claim it might have against that Reference Bank or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document, or to any Reference Bank Quotation, and any officer, employee or
                      agent of each Reference Bank may rely on this Clause 30.17.

                

        

      

      
        
          	30.18	
                  Confidentiality of Reference Bank Quotations

                

        

      

      
        
          	

                	(a)	
                  The Facility Agent agrees to keep each Reference Bank Quotation confidential and not to disclose it to anyone, save to the extent permitted by paragraphs
                      (b) and (c) below.

                

        

      

      
        
          	

                	(b)	
                  The Facility Agent may disclose any Reference Bank Quotation to any person appointed by it to provide administration services in respect of one or more of
                      the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement as agreed between the
                      Facility Agent and the relevant Reference Bank.

                

        

      

      
        
          	

                	(c)	
                  The Facility Agent may disclose any Reference Bank Quotation to:

                

        

      

      
        
          	

                	(i)	
                  any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and representatives if any person to
                      whom that Reference Bank Quotation is to be given pursuant to this paragraph (i) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so
                      inform if the recipient is subject to professional obligations to maintain the confidentiality of that Reference Bank Quotation or is otherwise bound by requirements of confidentiality in relation to it;

                

        

      

      
        
          	

                	(ii)	
                  any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or
                      other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Reference Bank Quotation is to be given is informed in writing of its
                      confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility Agent, it is not practicable to do so in the circumstances;

                

        

      

      
        
          	

                	(iii)	
                  any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other
                      investigations, proceedings or disputes if the person to whom that Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no
                      requirement to so inform if, in the opinion of the Facility Agent, it is not practicable to do so in the circumstances; and

                

        

      

      
        
          	

                	(iv)	
                  any person with the consent of the relevant Reference Bank.

                

        

      

      
        

        84 | 123

        
          

      

      

      

      
        
          	

                	(d)	
                  The Facility Agent acknowledge that each Reference Bank Quotation is or may be price-sensitive information and that its use may be regulated or prohibited
                      by applicable legislation including securities law relating to insider dealing and market abuse and the Facility Agent undertake not to use any Reference Bank Quotation for any unlawful purpose.

                

        

      

      
        
          	

                	(e)	
                  The Facility Agent agrees (to the extent permitted by law and regulation) to inform the relevant Reference Bank:

                

        

      

      
        
          	

                	(i)	
                  of the circumstances of any disclosure made pursuant to paragraph (c) (ii) above except where such disclosure is made to any of the persons referred to in
                      that paragraph during the ordinary course of its supervisory or regulatory function; and

                

        

      

      
        
          	

                	(ii)	
                  upon becoming aware that any information has been disclosed in breach of this Clause 30.18.

                

        

      

      
        
          	30.19	
                  Swap Providers

                

        

      

      
        
          	

                	(a)	
                  Each Swap Provider agrees that it is a party to this Agreement solely for the purpose of the Obligors' obligations under the Hedging Agreements being
                      included under the Security created by the Security Documents.

                

        

      

      
        
          	

                	(b)	
                  Any Hedging Agreement shall only enjoy the benefit of protection of the Security Documents if and to the extent such Hedging Agreement (and any transactions
                      thereunder) is entered into in accordance with Clause 25.11 (Hedging arrangements).

                

        

      

      
        
          	

                	(c)	
                  Clause 2.3 (Finance Parties' rights and obligations)
                      shall not apply to any Finance Party (in its capacity as Swap Provider) in respect of the Security Documents and no Swap Provider may separately enforce any rights under the Security Documents.

                

        

      

      
        
          	

                	(d)	
                  Each Swap Provider shall promptly notify the Facility Agent upon the occurrence of an early termination event or a default by any Obligor of its obligations
                      under a Hedging Agreement.

                

        

      

      
        
          	30.20	
                  Facility Agent's and Security Agent's Management Time

                

        

      

      Any amount payable to the Facility Agent and the Security Agent under Clause 17.3 (Indemnity to the Facility Agent and the Security Agent), Clause 19 (Costs and expenses) and Clause 30.10 (Lenders' indemnity to the
            Facility Agent and the Security Agent) shall include the cost of utilising the Facility Agent's and the Security Agent's management time or other resources to the extent that this relates to extraordinary matters, such as requests for
          waivers or amendments and/or a potential Default or Event of Default, and will be calculated on the basis of such reasonable daily or hourly rates as the Facility Agent and the Security Agent may notify to the Ultimate Parent and the Lenders, and
          is in addition to any fee paid or payable to the Facility Agent and the Security Agent under Clause 14 (Fees).

      
        

        85 | 123

        
          

      

      

      

      
        
          	30.21	
                  Deduction from amounts payable by the Facility Agent or Security Agent

                

        

      

      If any Party owes an amount to the Facility Agent under the Finance Documents the Facility Agent
          and the Security Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Facility Agent and the Security Agent would otherwise be obliged to make under the Finance
          Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

      
        
          	31	
                  SHARING AMONG THE FINANCE PARTIES

                

        

      

      
        
          	31.1	
                  Payments to Finance Parties

                

        

      

      If a Finance Party (a "Recovering Finance Party") receives or recovers any amount from any Obligor other than in accordance with Clause 32 (Payment

            mechanics) (a "Recovered Amount") and applies that amount to a payment due under the Finance Documents then:

      
        
          	

                	(a)	
                  the Recovering Finance Party shall, within three (3) Business Days, notify details of the receipt or recovery, to the Facility Agent;

                

        

      

      
        
          	

                	(b)	
                  the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the
                      receipt or recovery been received or made by the Facility Agent and distributed in accordance with Clause 32 (Payment mechanics),
                      without taking account of any Tax which would be imposed on the Facility Agent in relation to the receipt, recovery or distribution; and

                

        

      

      
        
          	

                	(c)	
                  the Recovering Finance Party shall, within three (3) Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the "Sharing Payment") equal to such receipt or recovery less any amount which the Facility Agent determines may be retained by the
                      Recovering Finance Party as its share of any payment to be made, in accordance with Clause 32.4 (Partial payments).

                

        

      

      
        
          	31.2	
                  Redistribution of payments

                

        

      

      The Facility Agent shall treat the Sharing Payment as if it had been paid by any of the Obligors
          and distribute it between the Finance Parties (other than the Recovering Finance Party) (the "Sharing Finance Parties") in accordance with
          Clause 32.4 (Partial payments).

      
        
          	31.3	
                  Recovering Finance Party's rights

                

        

      

      On a distribution by the Facility Agent under Clause 31.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor, as between that Obligor and the Recovering Finance Party, an amount of
          the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.

      
        
          	31.4	
                  Reversal of redistribution

                

        

      

      If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes
          repayable and is repaid by that Recovering Finance Party, then:

      
        

        86 | 123

        
          

      

      

      

      
        
          	

                	(a)	
                  each Sharing Finance Party shall, upon request of the Facility Agent, pay to the Facility Agent for the account of that Recovering Finance Party an amount
                      equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering
                      Finance Party is required to pay) (the "Redistributed Amount"); and

                

        

      

      
        
          	

                	(b)	
                  as between an Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid
                      by that Obligor.

                

        

      

      
        
          	31.5	
                  Exceptions

                

        

      

      
        
          	

                	(a)	
                  This Clause 31 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and
                      enforceable claim against the Obligors.

                

        

      

      
        
          	

                	(b)	
                  A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a
                      result of taking legal or arbitration proceedings, if:

                

        

      

      
        
          	

                	(i)	
                  it notified the other Finance Party of the legal or arbitration proceedings; and

                

        

      

      
        
          	

                	(ii)	
                  the other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable
                      having received notice and did not take separate legal or arbitration proceedings.

                

        

      

      SECTION 11

      ADMINISTRATION

      
        
          	32	
                  PAYMENT MECHANICS

                

        

      

      
        
          	32.1	
                  Payments to the Facility Agent

                

        

      

      
        
          	

                	(a)	
                  On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, the Obligors or that Lender shall make the same
                      available to the Facility Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Facility Agent as being customary at the time for settlement of
                      transactions in the relevant currency in the place of payment.

                

        

      

      
        
          	

                	(b)	
                  Payment shall be made to such account with such bank as the Facility Agent specifies.

                

        

      

      
        

        87 | 123

        
          

      

      

      

      
        
          	32.2	
                  Distributions by the Facility Agent

                

        

      

      Each payment received by the Facility Agent under the Finance Documents for another Party shall,
          subject to Clause 32.3 (Clawback) be made available by the Facility Agent as soon as practicable after receipt to the Party entitled to
          receive payment in accordance with this Agreement, to such account as that Party may notify to the Facility Agent by not less than five (5) Business Days' notice.

      
        
          	32.3	
                  Clawback

                

        

      

      
        
          	

                	(a)	
                  Where a sum is to be paid to the Facility Agent under the Finance Documents for another Party, the Facility Agent is not obliged to pay that sum to that
                      other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

                

        

      

      
        
          	

                	(b)	
                  Unless paragraph (c) below applies, if the Facility Agent pays an amount to another Party and it proves to be the case that the Facility Agent had not
                      actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Facility Agent shall on demand refund the same to the Facility Agent together with interest on that
                      amount from the date of payment to the date of receipt by the Facility Agent, calculated by the Facility Agent to reflect its cost of funds.

                

        

      

      
        
          	

                	(c)	
                  If the Facility Agent has notified the Lenders that it is willing to make available amounts for the account of a Borrower before receiving funds from the
                      Lenders then if and to the extent that the Facility Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to a Borrower:

                

        

      

      
        
          	

                	(i)	
                  the Facility Agent shall notify the Ultimate Parent of that Lender's identity and the Borrower to whom that sum was made available shall on demand refund it
                      to the Facility Agent; and

                

        

      

      
        
          	

                	(ii)	
                  the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower to whom that sum was made available, shall on
                      demand pay to the Facility Agent the amount (as certified by the Facility Agent) which will indemnify the Facility Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that
                      Lender.

                

        

      

      
        
          	32.4	
                  Partial payments

                

        

      

      
        
          	

                	(a)	
                  If the Facility Agent receives a payment for application against amounts due in respect of any Finance Documents that is insufficient to discharge all the
                      amounts then due and payable by the Borrowers under those Finance Documents, the Facility Agent shall apply that payment towards the obligations of the Obligors under those Finance Documents in the following order:

                

        

      

      
        
          	

                	(i)	
                  firstly, in or towards payment pro rata of any unpaid
                      fees, costs and expenses of the Facility Agent and Security Agent under the Finance Documents;

                

        

      

      
        

        88 | 123

        
          

      

      

      

      
        
          	

                	(ii)	
                  secondly, in or towards payment pro rata of any
                      accrued interest (including default interest), fees or commissions due but unpaid under the Finance Documents (excluding any Hedging Agreement);

                

        

      

      
        
          	

                	(iii)	
                  thirdly, in or towards payment pro rata of any
                      principal due but unpaid and indemnification due but unpaid under the Finance Documents (excluding any Hedging Agreement);

                

        

      

      
        
          	

                	(iv)	
                  fourthly, in or towards payment pro rata of any other
                      sum due but unpaid under the Finance Documents (excluding any Hedging Agreement); and

                

        

      

      
        
          	

                	(v)	
                  fifthly, in or towards payment pro rata of any other
                      sum due but unpaid under any Hedging Agreement.

                

        

      

      
        
          	

                	(b)	
                  The Facility Agent shall, if so directed by all Lenders, vary the order set out in paragraphs (a)(ii) to (v) above.

                

        

      

      
        
          	

                	(c)	
                  Paragraphs (a) and (b) above will override any appropriation made by the Borrowers.

                

        

      

      
        
          	32.5	
                  Set-off by any Obligor

                

        

      

      All payments to be made by any Obligor under the Finance Documents shall be calculated and be made
          without (and free and clear of any deduction for) set-off or counterclaim.

      
        
          	32.6	
                  Business Days

                

        

      

      
        
          	

                	(a)	
                  Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one)
                      or the preceding Business Day (if there is not).

                

        

      

      
        
          	

                	(b)	
                  During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at
                      the rate payable on the original due date.

                

        

      

      
        
          	32.7	
                  Currency of account

                

        

      

      
        
          	

                	(a)	
                  Subject to paragraphs (b) to (d) below, USD is the currency of account and payment for any sum due from any Obligor under any Finance Document.

                

        

      

      
        
          	

                	(b)	
                  A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency in which that Loan or Unpaid Sum is denominated on its
                      due date.

                

        

      

      
        
          	

                	(c)	
                  Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

                

        

      

      
        
          	

                	(d)	
                  Any amount expressed to be payable in a currency other than USD shall be paid in that other currency.

                

        

      

      
        
          	33	
                  NOTICES

                

        

      

      
        
          	33.1	
                  Communications in writing

                

        

      

      
        

        89 | 123

        
          

      

      

      

      Any communication to be made under or in connection with the Finance Documents shall be made in
          writing and, unless otherwise stated, may be made by e-mail or letter.

      
        
          	33.2	
                  Addresses

                

        

      

      The address and e-mail address (and the department or officer or any equivalent in any Relevant
          Jurisdiction, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

      
        
          	

                	(a)	
                  in the case of any of the Obligors (if by letter, a copy of the letter shall also be sent by email) to:

                

        

      

      Flex LNG Management Ltd

          4th floor, 15 Sloan Square

          London, SW1W 8ER, UK

      e-mail: finance@flexlng.com

          Att: Øystein Kalleklev

      
        
          	

                	(b)	
                  in the case of each Lender, that notified in writing to the Facility Agent on or prior to the date on which it becomes a Party; and

                

        

      

      
        
          	

                	(c)	
                  in the case of the Facility Agent, to:

                

        

      

      Address:

      Agency Syndicated Loans

      Daalsesingel 71

      3511 SW Utrecht

      The Netherlands

      PAC EA8550

      E-mail: abn.amro.agency.team.1@nl.abnamro.com

      Att: Agency Syndicated Loans

      or any substitute address, e-mail address or department or officer (or any equivalent in any
          Relevant Jurisdiction) as the Party may notify to the Facility Agent (or the Facility Agent may notify to the other Parties, if a change is made by the Facility Agent) by not less than five (5) Business Days' notice.

      
        
          	33.3	
                  Delivery

                

        

      

      
        
          	

                	(a)	
                  Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

                

        

      

      
        
          	

                	(i)	
                  if by way of e-mail, when received in legible form; or

                

        

      

      
        
          	

                	(ii)	
                  if by way of letter, when it has been left at the relevant address or five (5) Business Days after being deposited in the post postage prepaid in an
                      envelope addressed to it at that address,

                

        

      

      
        

        90 | 123

        
          

      

      

      

      and, if a particular department or officer (or any equivalent in any Relevant Jurisdiction) is
          specified as part of its address details provided under Clause 33.2 (Addresses), if addressed to that department or officer (or any equivalent
          in any Relevant Jurisdiction).

      
        
          	

                	(b)	
                  Any communication or document which becomes effective, in accordance with paragraph (a) above, after 5:00 p.m. in the place of receipt shall be deemed only
                      to become effective on the following day.

                

        

      

      
        
          	

                	(c)	
                  All notices from or to the Obligors shall be sent through the Facility Agent.

                

        

      

      
        
          	33.4	
                  Notification of address

                

        

      

      Promptly upon receipt of notification of an address or change of address pursuant to Clause 33.2 (Addresses) or changing its own address, the Facility Agent shall notify the other Parties.

      
        
          	33.5	
                  English language

                

        

      

      
        
          	

                	(a)	
                  Any notice given under or in connection with any Finance Document must be in English.

                

        

      

      
        
          	

                	(b)	
                  All other documents provided under or in connection with any Finance Document must be:

                

        

      

      
        
          	

                	(i)	
                  in English; or

                

        

      

      
        
          	

                	(ii)	
                  if not in English, and if so required by the Facility Agent, accompanied by a certified English translation and, in this case, the English translation will
                      prevail unless the document is a constitutional, statutory or other official document.

                

        

      

      
        
          	34	
                  CALCULATIONS AND CERTIFICATES

                

        

      

      
        
          	34.1	
                  Accounts

                

        

      

      In any litigation or arbitration proceedings arising out of or in connection with a Finance
          Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

      
        
          	34.2	
                  Certificates and determinations

                

        

      

      Any certification or determination by a Finance Party of a rate or amount under any Finance
          Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

      
        
          	34.3	
                  Day count convention

                

        

      

      Any interest, commission or fee accruing under a Finance Document will accrue from day to day and
          is calculated on the basis of the actual number of days elapsed and a year of 360 days.

      
        

        91 | 123

        
          

      

      

      

      
        
          	35	
                  PARTIAL INVALIDITY

                

        

      

      If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or
          unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction
          will in any way be affected or impaired.

      
        
          	36	
                  REMEDIES AND WAIVERS

                

        

      

      No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or
          remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in
          this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

      
        
          	37	
                  AMENDMENTS AND WAIVERS

                

        

      

      
        
          	37.1	
                  Required consents

                

        

      

      
        
          	

                	(a)	
                  Subject to Clause 37.2 (Exceptions) any term of the
                      Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors and any such amendment or waiver will be binding on all Parties.

                

        

      

      
        
          	

                	(b)	
                  The Facility Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 37.

                

        

      

      
        
          	37.2	
                  Exceptions

                

        

      

      
        
          	

                	(a)	
                  An amendment or waiver that has the effect of changing or which relates to:

                

        

      

      
        
          	

                	(i)	
                  the definition of "Majority Lenders" in Clause 1.1 (Definitions);

                

        

      

      
        
          	

                	(ii)	
                  the Guarantee;

                

        

      

      
        
          	

                	(iii)	
                  the Availability Period;

                

        

      

      
        
          	

                	(iv)	
                  any increase of the Facility Amount pursuant to Clause 2.2 (Accordion

                        Increase Option);

                

        

      

      
        
          	

                	(v)	
                  an extension to the date of payment of any amount under the Finance Documents;

                

        

      

      
        
          	

                	(vi)	
                  a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

                

        

      

      
        
          	

                	(vii)	
                  a change in currency of payment of any amount under the Finance Documents;

                

        

      

      
        
          	

                	(viii)	
                  an increase in or an extension of any Commitment or the Total Commitments;

                

        

      

      
        
          	

                	(ix)	
                  any provision which expressly requires the consent of all the Lenders;

                

        

      

      
        

        92 | 123

        
          

      

      

      

      
        
          	

                	(x)	
                  Clause 2.2 (Finance Parties' rights and obligations),

                      Clause 9 (Mandatory prepayment), Clause 28 (Changes to the Lenders), Clause 29 (Changes to the Obligors), this Clause 37, Clause 40 (Governing Law) and Clause 41 (Enforcement);

                

        

      

      
        
          	

                	(xi)	
                  any provision relating to Sanctions;

                

        

      

      
        
          	

                	(xii)	
                  the release of any Security under any Security Document unless permitted under this Agreement or any other Finance Document, shall not be made without the
                      prior consent of all the Lenders.

                

        

      

      
        
          	

                	(b)	
                  An amendment or waiver which relates to the rights or obligations of the Facility Agent, the Security Agent, the Arrangers or the Swap Provider (each in
                      their capacity as such) may not be effected without the consent of the Facility Agent, the Security Agent, the Arrangers or, as the case may be, the Swap Provider.

                

        

      

      
        
          	

                	(c)	
                  If any Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any of the terms of any Finance Document or other vote of
                      Lenders under the terms of this Agreement within five (5) Business Days (unless the Ultimate Parent and the Facility Agent agree to a longer time period in relation to any request) of that request being made, its Commitment and/or
                      participation shall not be included for the purpose of calculating the Total Commitments or participations under the Facility when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of
                      Total Commitments and/or participations has been obtained to approve that request.

                

        

      

      
        
          	38	
                  COUNTERPARTS

                

        

      

      Each Finance Document may be executed in any number of counterparts, and this has the same effect
          as if the signatures on the counterparts were on a single copy of the Finance Document.

      
        
          	39	
                  CONTRACTUAL RECOGNITION OF BAIL-IN

                

        

      

      Notwithstanding any other term of any Finance Document or any other agreement, arrangement or
          understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and
          acknowledges and accepts to be bound by the effect of:

      
        
          	

                	(a)	
                  any Bail-In Action in relation to any such liability, including (without limitation):

                

        

      

      
        
          	

                	(i)	
                  a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such
                      liability;

                

        

      

      
        
          	

                	(ii)	
                  a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

                

        

      

      
        
          	

                	(iii)	
                  a cancellation of any such liability; and

                

        

      

      
        

        93 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.

                

        

      

      SECTION 12

      GOVERNING LAW AND ENFORCEMENT

      
        
          	40	
                  GOVERNING LAW

                

        

      

      This Agreement is governed by Norwegian law.

      
        
          	41	
                  ENFORCEMENT

                

        

      

      
        
          	

                	(a)	
                  The courts of Norway, the venue to be Oslo District Court, have exclusive jurisdiction to settle any dispute arising out of or in connection with this
                      Agreement.

                

        

      

      
        
          	

                	(b)	
                  This Clause 41 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a
                      dispute in any other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

                

        

      

      
        
          	42	
                  PROCESS AGENT

                

        

      

      Each Obligor hereby irrevocably:

      
        
          	

                	(a)	
                  appoints Seatankers Management Norway AS (company no. 979 956 223), PO Box 1327 Vika, 0112 Oslo (mail address) and Bryggegate 3, 0250 Oslo, Norway (visiting
                      adress) as its agent for the service of process and/or any other writ, notice, order or judgment in respect of this Agreement, any other Finance Document governed by Norwegian law and/or the matters arising here from; and

                

        

      

      
        
          	

                	(b)	
                  agrees that failure by such process agent to notify an Obligor of the process will not invalidate the proceedings concerned.

                

        

      

      If any process agent appointed pursuant to this Clause 42 (Process Agent) (or any successor thereto) shall cease to exist for any reason where process may be served, the Obligor will forthwith appoint another process agent with
          an office in Norway where process may be served and will forthwith notify the Facility Agent thereof.

      
        

        94 | 123

        
          

      

      

      

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

      SIGNATURES

      	
              THE BORROWERS

            	 	 
	 	 	 
	
              FLEX LNG ENDEAVOUR LIMITED

            	 	 
	 	 	 
	
              By:

            	
              /s/ Øystein Kalleklev

            	 	 
	 	 	 	 
	
              Name:

            	
              Øystein Kalleklev, Attorney-in-fact

            	 	 
	 	 	 
	
              FLEX LNG ENTERPRISE LIMITED

            	 	 
	 	 	 
	
              By:

            	
              /s/ Øystein Kalleklev

            	 	 
	 	 	 	 
	
              Name:

            	
              Øystein Kalleklev, Attorney-in-fact

            	 	 
	 	 	 
	
              FLEX LNG RANGER LIMITED

            	 	 
	 	 	 
	
              By:

            	
              /s/ Øystein Kalleklev

            	 	 
	 	 	 	 
	
              Name:

            	
              Øystein Kalleklev, Attorney-in-fact

            	 	 
	 	 	 
	
              THE GUARANTORS

            	 	 
	 	 	 
	
              FLEX LNG LTD.

            	 	 
	 	 	 
	
              By:

            	
              /s/ Øystein Kalleklev

            	 	 
	 	 	 	 
	
              Name:

            	
              Øystein Kalleklev, Attorney-in-fact

            	 	 
	 	 	 
	
              FLEX LNG FLEET LIMITED

            	 	 
	 	 	 
	
              By:

            	
              /s/ Øystein Kalleklev

            	 	 
	 	 	 	 
	
              Name:

            	
              Øystein Kalleklev, Attorney-in-fact

            	 	 
	 	 	 
	 	 	 

      

      

      
        

        95 | 123

        
          

      

      

      

      	
              AS BOOKRUNNER, CO-ORDINATOR AND MANDATED LEAD ARRANGER

            
	 	 	 
	
              ABN AMRO BANK N.V.

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              AS MANDATED LEAD ARRANGERS

            	 	 
	 	 	 
	
              DNB BANK ASA

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

            
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              AS LEAD ARRANGERS

            	 	 
	 	 	 
	
              CREDIT SUISSE AG

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              NIBC BANK N.V.

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              SPAREBANK 1 SR-BANK ASA

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	 	 	 
	 	 	 
	
              AS ORIGINAL LENDERS

            	 	 
	 	 	 
	
              ABN AMRO BANK N.V., OSLO BRANCH

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 

      

      

      
        

        96 | 123

        
          

      

      

      

      	
              DNB BANK ASA

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

            
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              CREDIT SUISSE AG

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              NIBC BANK N.V.

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              SPAREBANK 1 SR-BANK ASA

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
              AS FACILITY AGENT AND SECURITY AGENT

            	 
	 	 	 
	
              ABN AMRO BANK N.V.

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
              AS SWAP PROVIDERS

            	 
	 	 	 
	
              ABN AMRO BANK N.V.

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	
              DNB BANK ASA

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 

      

      

      
        

        97 | 123

        
          

      

      

      

      	
              SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

            
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              CREDIT SUISSE AG

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              NIBC BANK N.V.

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 
	
              SPAREBANK 1 SR-BANK ASA

            	 	 
	 	 	 
	
              By:

            	
              /s/ Atle Gabrielsen

            	 	 
	 	 	 	 
	
              Name:

            	
              Atle Gabrielsen, Attorney-in-fact

            	 	 
	 	 	 

      

      

      
        

        98 | 123

        
          

      

      

      

      SCHEDULE 1

          THE ORIGINAL LENDERS

      	
              Name of Original Lender

            	
              Commitment under

                  the Facility

            
	
              ABN AMRO BANK N.V. OSLO BRANCH

            	
              USD 85,000,000

            
	
              DNB BANK ASA

            	
              USD 55,000,000

            
	
              SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)

            	
              USD 55,000,000

            
	
              CREDIT SUISSE AG

            	
              USD 40,000,000

            
	
              NIBC BANK N.V.

            	
              USD 40,000,000

            
	
              SPAREBANK 1 SR-BANK ASA

            	
              USD 40,000,000

            
	
              Total Commitments

            	
              USD 315,000,000

            

      

      

      
        

        99 | 123

        
          

      

      

      

      SCHEDULE 2

          CONDITIONS PRECEDENT

      Part I: Conditions Precedent to Financial Close

      
        
          	1.	
                  Obligors

                

        

      

      
        
          	

                	(a)	
                  A copy of the constitutional documents of each Obligor.

                

        

      

      
        
          	

                	(b)	
                  A copy of a resolution of the board directors of each Obligor:

                

        

      

      
        
          	

                	(i)	
                  approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and
                      perform the Finance Documents to which it is a party;

                

        

      

      
        
          	

                	(ii)	
                  authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and

                

        

      

      
        
          	

                	(iii)	
                  authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in
                      connection with the Finance Documents to which it is a party.

                

        

      

      
        
          	

                	(c)	
                  A copy of the resolutions of each Borrower's shareholder ratifying the resolutions of the board of directors.

                

        

      

      
        
          	

                	(d)	
                  A certificate of goodstanding in respect of the Borrowers, issued by the Marshall Islands registry.

                

        

      

      
        
          	

                	(e)	
                  A specimen of the signature (which can be by way of copy of passport) of each person signing the Finance Documents on behalf of each Obligor.

                

        

      

      
        
          	

                	(f)	
                  Copies of passports of all board members of each Obligor.

                

        

      

      
        
          	

                	(g)	
                  A certificate of an authorised signatory of each Obligor certifying that each copy document relating to it specified in this Schedule 2 is correct, complete
                      and in full force and effect and has not been amended or superseded as at a date no earlier than the date of this Agreement and confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not
                      cause any borrowing, guarantee, security or similar binding limit to be exceeded.

                

        

      

      
        
          	

                	(h)	
                  Such other documentation and evidence required to complete the "know your customer" checks as described in Clause 23.8 ("Know your customer" checks).

                

        

      

      The documents covered by this Section 1, to be submitted in originals or certified copies.

      
        
          	2.	
                  Finance Documents

                

        

      

      
        
          	

                	(a)	
                  This Agreement executed by the parties thereto.

                

        

      

      
        
          	

                	(b)	
                  A letter from the Facility Agent regarding effective rate of interest, duly countersigned by the Borrowers.

                

        

      

      
        
          	

                	(c)	
                  Any Fee Letter(s), duly signed by the parties thereto.

                

        

      

      
        

        100 | 123

        
          

      

      

      

      
        
          	

                	(d)	
                  Evidence that the fees, costs and expenses due from the Borrowers pursuant to Clause 14 (Fees) and Clause 19 (Costs and expenses) have been paid.

                

        

      

      
        
          	3.	
                  Other Documents

                

        

      

      
        
          	

                	(a)	
                  A copy of the Original Financial Statements and most up-to-date financial statements of the Obligors.

                

        

      

      
        
          	

                	(b)	
                  A copy of the Shipbuilding Contracts.

                

        

      

      
        
          	

                	(c)	
                  A copy of the Management Agreements, on terms acceptable to the Finance Parties.

                

        

      

      
        
          	

                	(d)	
                  A copy of the Sterna RCF, amended on terms acceptable to the Lenders in order to comply with the terms of this Agreement.

                

        

      

      
        
          	

                	(e)	
                  Evidence that all process agent appointments required by the Finance Documents have been duly accepted.

                

        

      

      
        
          	4.	
                  Legal opinions

                

        

      

      The following legal opinions if requested by the Lenders, each addressed to the Facility Agent and
          the Original Lenders:

      
        
          	

                	(a)	
                  a legal opinion from Arntzen de Besche Advokatfirma AS, the legal advisers to the Facility Agent as to Norwegian law;

                

        

      

      
        
          	

                	(b)	
                  a legal opinion from Trott & Duncan Ltd., the legal advisers to the Facility Agent as to Bermuda law;

                

        

      

      
        
          	

                	(c)	
                  a legal opinion from Watson Farley & Williams, the legal advisers to the Facility Agent as to the laws of New York and the Republic of Marshall Islands;

                

        

      

      
        
          	

                	(d)	
                  such other legal opinion(s) as the Facility Agent may reasonably request in respect of any Finance Document governed by foreign law or any entity
                      incorporated in a foreign jurisdiction,

                

        

      

      each in form and substance acceptable to the Facility Agent.

      
        

        101 | 123

        
          

      

      

      

      Part II: Conditions Precedent (to each Drawdown Request)

      (Vessel specific documents relates only to the Collateral Vessel financed by the applicable
          Tranche)

      
        
          	1.	
                  Finance Documents

                

        

      

      
        
          	

                	(a)	
                  The Account Pledge, duly signed by all parties.

                

        

      

      
        
          	

                	(b)	
                  In respect of the first Drawdown, the Share Pledges, duly signed by all parties and evidence that the Security to be created thereunder have been duly
                      created and perfected.

                

        

      

      
        
          	

                	(c)	
                  Duly executed and dated notices and acknowledgements in accordance with the Account Pledge.

                

        

      

      
        
          	

                	(d)	
                  The Assignment of Earnings and Charterparties, duly signed by all parties.

                

        

      

      
        
          	

                	(e)	
                  If applicable, duly executed and dated notices and acknowledgements in accordance with the Assignment of Earnings and Charterparties in respect of any
                      charterparties entered into for the applicable Collateral Vessel with a term exceeding 12 months.

                

        

      

      
        
          	

                	(f)	
                  Copies of any Hedging Agreements (if any) entered into.

                

        

      

      
        
          	

                	(g)	
                  The Assignment of Hedging Claims.

                

        

      

      
        
          	

                	(h)	
                  Duly executed and dated notices and acknowledgements in accordance with the Assignment of Hedging Claims.

                

        

      

      
        
          	

                	(i)	
                  The Assignment of Insurances, duly signed by all parties.

                

        

      

      
        
          	

                	(j)	
                  Duly executed and dated notices and Letters of undertaking and acknowledgments, as applicable, in respect of the Assignment of Insurances, in respect of the
                      relevant Collateral Vessel, together with copies of the relevant policies or cover notes or entry certificates duly endorsed with the interest of the Finance Parties.

                

        

      

      
        
          	

                	(k)	
                  If applicable, the Assignment of Intercompany Loan, duly signed by all parties.

                

        

      

      
        
          	

                	(l)	
                  If applicable, duly executed and dated notices and acknowledgements in accordance with the Assignment of Intercompany Loan, in respect of the relevant
                      Borrower.

                

        

      

      
        
          	

                	(m)	
                  The Trust Agreement in respect of the relevant Collateral Vessel, duly executed.

                

        

      

      
        
          	

                	(n)	
                  A Compliance Certificate, duly executed.

                

        

      

      
        
          	

                	(o)	
                  A copy of the Subordination Statement, duly signed by all parties thereto.

                

        

      

      
        
          	2.	
                  Other documents and evidence

                

        

      

      
        
          	

                	(a)	
                  A copy of any other Authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary (if it has notified the
                      Borrowers accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

                

        

      

      
        

        102 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  Evidence that the fees, costs and expenses due from the Borrowers pursuant to Clause 14 (Fees) and Clause 19 (Costs and expenses) have been paid or will be paid by the
                      applicable Drawdown Date or, if earlier, on its due date.

                

        

      

      
        
          	

                	(c)	
                  A copy of any shareholder loan or intercompany loan agreement relating to loans to or from any Obligor, if applicable, including any subordination statement
                      acceptable to the Facility Agent.

                

        

      

      
        
          	

                	(d)	
                  A subordination statement by the Manager of the Collateral Vessel, in form and substance acceptable to the Facility Agent, whereupon the Manager fully
                      subordinates its claims under any Management Agreement(s) in respect of the Collateral Vessel to the claims of the Finance Parties under the Finance Documents.

                

        

      

      
        
          	

                	(e)	
                  Evidence that all Insurances in respect of the Collateral Vessel in accordance with Clause 26.1 (Vessel insurances) are in place and will come in full force and effect upon the delivery of the applicable Collateral Vessel and (at the Borrowers' cost) an insurance report from
                      BankServe, Marsh or AON or any other international reputable insurance consultants acceptable to the Facility Agent confirming the compliance with Clause 26.1.

                

        

      

      
        
          	

                	(f)	
                  Confirmation from the Approved Ship Registry that all documents necessary to register the Collateral Vessel in the name of the applicable Borrower and to
                      register the Mortgage against the Collateral Vessel is pre-cleared and ready to be registered upon discharge of any existing mortgage and completion of transfer under the Shipbuilding Contract, save for such documents that cannot be
                      issued or executed prior to the Delivery Date.

                

        

      

      
        
          	

                	(g)	
                  The bank and the terms for the pre-positioning of the applicable Pre-positioning Portion to be agreed between the Facility Agent, the applicable Borrower
                      and the Yard.

                

        

      

      
        
          	

                	(h)	
                  Closing memorandum, in respect of the relevant Collateral Vessel, in agreed form between the applicable Borrower, the Yard and the Facility Agent, in form
                      and substance acceptable to the Facility Agent.

                

        

      

      
        
          	

                	(i)	
                  Up to date valuation reports evidencing that the Fair Market Value of the Collateral Vessel complies with the requirements in Clause 26.11 (Fair Market Value) and that the amount requested to the utilised is within the Maximum Tranche Amount.

                

        

      

      
        
          	

                	(j)	
                  Evidence that all process agent appointments required by the Finance Documents have been duly accepted.

                

        

      

      
        
          	

                	(k)	
                  Evidence of the Total Delivery Cost for the applicable Collateral Vessel and a confirmation from the Yard or other acceptable evidence of the amount of the
                      final instalment payable under the Shipbuilding Contract.

                

        

      

      
        

        103 | 123

        
          

      

      

      

      
        
          	

                	(l)	
                  In respect of FLEX RANGER only, evidence satisfactory to the Facility Agent, that the applicable Shipbuilding Contract has been, or will be, transferred no
                      later than on the applicable Delivery Date from Flex LNGC1 Limited to FLEX LNG RANGER Limited and/or that title to FLEX RANGER will be transferred from Flex LNGC1 Limited to FLEX LNG RANGER Limited on terms acceptable to the Facility
                      Agent immediately upon or concurrent with the delivery of FLEX RANGER from the Yard.

                

        

      

      Part III: Conditions Precedent at each Delivery Date

      (to be delivered on the relevant Delivery Date for each Initial Vessel)

      (Vessel specific documents relates only to the Collateral Vessel financed by the applicable
          Tranche)

      
        
          	1.	
                  Finance Documents

                

        

      

      
        
          	

                	(a)	
                  The Mortgage in respect of the relevant Collateral Vessel, duly signed and registered as a first preferred mortgage in the Approved Ship Registry against
                      the relevant Collateral Vessel.

                

        

      

      
        
          	

                	(b)	
                  Transcript of Registry showing that the applicable Borrower is registered as the owner of the relevant Collateral Vessel and that the Mortgage is registered
                      as a first preferred mortgage and that no other encumbrances, maritime liens, mortgages or debts whatsoever are registered against the Collateral Vessel.

                

        

      

      
        
          	2.	
                  Vessel Documents

                

        

      

      
        
          	

                	(a)	
                  Copy of the protocol of trials, in respect of the relevant Collateral Vessel, as delivered by the Yard.

                

        

      

      
        
          	

                	(b)	
                  Copy of the protocol of inventory, in respect of the relevant Collateral Vessel, of the equipment, spare parts, tools etc., as delivered by the Yard.

                

        

      

      
        
          	

                	(c)	
                  Copy of the protocol of stores of consumables, in respect of the relevant Collateral Vessel, as delivered by the Yard.

                

        

      

      
        
          	

                	(d)	
                  Copies of drawings and plans in respect of the relevant Collateral Vessel.

                

        

      

      
        
          	

                	(e)	
                  Copy of the protocol of delivery and acceptance under the relevant Shipbuilding Contract, duly signed by the Yard and the relevant Borrower.

                

        

      

      
        
          	

                	(f)	
                  Copy of the Declaration of Warranty, in respect of the relevant Collateral Vessel, as delivered by the Yard.

                

        

      

      
        
          	

                	(g)	
                  Copy of the duly notarised and legalised Builder's Certificate, in respect of the relevant Collateral Vessel, issued by the Yard.

                

        

      

      
        
          	

                	(h)	
                  Copy of the commercial invoice, in respect of the relevant Collateral Vessel, issued by the Yard.

                

        

      

      
        
          	

                	(i)	
                  Copy of the duly notarised and legalised Bill of Sale, in respect of the relevant Collateral Vessel, issued by the Yard, if applicable.

                

        

      

      
        
          	

                	(j)	
                  A copy of the Document of Compliance for the Manager.

                

        

      

      
        

        104 | 123

        
          

      

      

      

      
        
          	3.	
                  Other documents and evidence

                

        

      

      
        
          	

                	(a)	
                  Evidence that the purchase price for the applicable Collateral Vessel not covered by the relevant Tranche has been, or will at the latest together with the
                      Tranche be, paid by equity to the Yard.

                

        

      

      
        
          	4.	
                  Legal opinions

                

        

      

      The following legal opinions if requested by the Lenders, each addressed to the Facility Agent and
          the Original Lenders:

      
        
          	

                	(a)	
                  a legal opinion from Arntzen de Besche Advokatfirma AS, the legal advisers to the Facility Agent as to Norwegian law;

                

        

      

      
        
          	

                	(b)	
                  a legal opinion from Trott & Duncan Ltd., the legal advisers to the Facility Agent as to Bermuda law;

                

        

      

      
        
          	

                	(c)	
                  a legal opinion from Watson Farley & Williams LLP, the legal advisers to the Facility Agent as to as to the laws of New York and the laws of the
                      Republic of Marshall Islands;

                

        

      

      
        
          	

                	(d)	
                  a legal opinion from HFW, the legal advisors to the Facility Agent as to English law;

                

        

      

      
        
          	

                	(e)	
                  such other legal opinion(s) as the Facility Agent may reasonably request in respect of any Finance Document governed by foreign law or any entity
                      incorporated in a foreign jurisdiction, each in form and substance acceptable to the Facility Agent and as agreed prior to the Drawdown Request.

                

        

      

      
        

        105 | 123

        
          

      

      

      

      Part IV: Conditions Subsequent

      
        
          	1.	
                  Finance Documents

                

        

      

      
        
          	

                	(a)	
                  Any Hedging Agreements entered into with any Obligor.

                

        

      

      
        
          	

                	(b)	
                  Duly executed and dated notices and acknowledgements in accordance with the Assignment of Earnings and Charterparty (if applicable).

                

        

      

      
        
          	

                	(c)	
                  Duly executed and dated notices and acknowledgements in accordance with the Assignment of Hedging Claims.

                

        

      

      
        
          	

                	(d)	
                  Duly executed and dated notices and Letters of undertaking and acknowledgments, as applicable, in respect of the Assignment of Insurances together with
                      copies of the relevant policies or cover notes or entry certificates duly endorsed with the interest of the Finance Parties.

                

        

      

      
        
          	2.	
                  Other documents

                

        

      

      
        
          	

                	(a)	
                  Copies of the class certificate and other relevant certificates, in respect of the relevant Collateral Vessel, including:

                

        

      

      
        
          	

                	(i)	
                  a copy of the load-line certificate;

                

        

      

      
        
          	

                	(ii)	
                  a copy of the IOPP (International Oil Pollution Prevention) Certificate;

                

        

      

      
        
          	

                	(iii)	
                  a copy of the SOLAS (International Convention for Safety of Life at Sea) Certificate;

                

        

      

      
        
          	

                	(iv)	
                  a copy of the Ship Radio License; and

                

        

      

      
        
          	

                	(v)	
                  a copy of the Minimum Safe Manning Certificate.

                

        

      

      
        
          	

                	(vi)	
                  a copy of the Collateral Vessel's safety management certificate issued pursuant to the ISM Code;

                

        

      

      
        
          	

                	(vii)	
                  a copy of the certificate issued pursuant to the ISPS Code; and

                

        

      

      
        
          	

                	(b)	
                  A copy of the Inventory of Hazardous Materials (IHM) available to the Collateral Vessel.

                

        

      

      
        
          	3.	
                  Legal opinions

                

        

      

      Such legal opinion(s) as the Facility Agent may reasonably request in respect of any Finance
          Document each in form and substance acceptable to the Facility Agent and as agreed under Part III.

      
        

        106 | 123

        
          

      

      

      

      Part V: Conditions precedent to a Substitution

      
        
          	1.	
                  The Replacement Borrower

                

        

      

      
        
          	

                	(a)	
                  A copy of the constitutional documents of a Replacement Borrower.

                

        

      

      
        
          	

                	(b)	
                  A copy of a resolution of the board directors of a Replacement Borrower:

                

        

      

      
        
          	

                	(i)	
                  approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and
                      perform the Finance Documents to which it is a party;

                

        

      

      
        
          	

                	(ii)	
                  authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and

                

        

      

      
        
          	

                	(iii)	
                  authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in
                      connection with the Finance Documents to which it is a party.

                

        

      

      
        
          	

                	(c)	
                  A specimen of the signature (which can be by way of copy of passport) of each person signing the Finance Documents on behalf of the Replacement Borrower.

                

        

      

      
        
          	

                	(d)	
                  Copies of passports of all board members of a Replacement Borrower.

                

        

      

      
        
          	

                	(e)	
                  A certificate of an authorised signatory of a Replacement Borrower certifying that each copy document relating to it specified in this Schedule 2 is
                      correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of this Agreement and confirming that borrowing or guaranteeing or securing, as appropriate, the Total
                      Commitments would not cause any borrowing, guarantee, security or similar binding limit to be exceeded.

                

        

      

      
        
          	

                	(f)	
                  Such other documentation and evidence required to complete the "know your customer" checks as described in Clause 23.8 ("Know your customer" checks).

                

        

      

      The documents covered by this Section 1, to be submitted in originals or certified copies.

      
        
          	2.	
                  Finance Documents

                

        

      

      
        
          	

                	(a)	
                  The Substitution Letter executed by the parties thereto, including the Replacement Borrower.

                

        

      

      
        
          	

                	(b)	
                  The Share Pledge, duly signed by all parties, including the Intermediate Parent, and evidence that the Security to be created thereunder over the shares in
                      the Replacement Borrower has been duly created and perfected.

                

        

      

      
        
          	3.	
                  Other documents

                

        

      

      
        
          	

                	(a)	
                  Evidence that all process agent appointments required by the Finance Documents have been duly accepted.

                

        

      

      
        

        107 | 123

        
          

      

      

      

      
        
          	

                	(b)	
                  A copy of any shareholder loan or intercompany loan agreement relating to loans to or from the Replacement Borrower, whether arising as a result of the
                      Substitution or otherwise, if applicable, including any subordination statement acceptable to the Facility Agent.

                

        

      

      
        
          	

                	(c)	
                  Such other documents and evidence as listed in Part I to IV of this Schedule 2 as requested by the Facility Agent, subject to logical adjustments depending
                      upon inter alia whether Substitution occurs after the Substitution Vessel has been delivered from the Yard or not, including for
                      the avoidance of any doubt, such Security to be granted by the Replacement Borrower replacing the Security previously granted by the Initial Borrower being replaced.

                

        

      

      
        
          	4.	
                  Legal opinions

                

        

      

      The following legal opinions from lawyers appointed by the Facility Agent, each addressed to the
          Facility Agent and the Original Lenders:

      
        
          	

                	(a)	
                  a legal opinion from Arntzen de Besche Advokatfirma AS, the legal advisers to the Facility Agent as to Norwegian law;

                

        

      

      
        
          	

                	(b)	
                  such legal opinion(s) as the Facility Agent may reasonably request in respect of the Replacement Borrower; and

                

        

      

      
        
          	

                	(c)	
                  such other legal opinion(s) as the Facility Agent may reasonably request in respect of any Finance Document governed by foreign law, each in form and
                      substance acceptable to the Facility Agent.

                

        

      

      
        

        108 | 123

        
          

      

      

      

      SCHEDULE 3

          REQUESTS AND NOTICES

      Part I: Drawdown Request

      	
              From:

            	
              [FLEX LNG LTD.]

            
	 	 
	
              To:

            	
              ABN AMRO Bank N.V. as Facility Agent

            
	 	 
	
              Dated:

            	 
	 	 

      Dear Sirs

      USD 315,000,000 Term Loan Facility Agreement dated 20 December, 2017 (the "Facility Agreement")

      
        
          	1.	
                  We refer to the Facility Agreement. This is a Drawdown Request. Terms defined in the Facility Agreement have the same meaning in this Drawdown Request
                      unless given a different meaning in this Drawdown Request.

                

        

      

      
        
          	2.	
                  We wish to borrow the Loan on the following terms:

                

        

      

      	 	
              (a)

            	
              Proposed Drawdown Date:

            	
               [●] (or, if that is not a Business Day, the next Business Day)

            
	 	 	 	 
	 	
              (b)

            	
              Amount:

            	
              USD [●]

            
	 	 	 	 
	 	
              (c)

            	
              Tranche:

            	
              [insert]

            
	 	 	 	 
	 	
              (d)

            	
              The proceeds of the Drawdown shall be credited to: [●]

            
	 	 	 

      
        
          	3.	
                  We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of
                      this Drawdown Request, including that no Default is continuing or would result from the proposed Drawdown.

                

        

      

      
        
          	4.	
                  This Drawdown Request is irrevocable.

                

        

      

      Yours faithfully

      ....................................

      authorised signatory for

      FLEX LNG LTD.

      
        

        109 | 123

        
          

      

      

      

      Part II: Selection Notice

      	
              From:

            	
              FLEX LNG LTD.

            
	 	 
	
              To:

            	
              ABN AMRO Bank N.V. as Facility Agent

            
	 	 
	
              Dated:

            	 
	 	 

      Dear Sirs

      USD 315,000,000 Term Loan Facility Agreement dated 20 December, 2017 (the "Facility Agreement")

      
        
          	1.	
                  We refer to the Facility Agreement. This is a Selection Notice. Terms defined in the Facility Agreement have the same meaning in this Selection Notice
                      unless given a different meaning in this Selection Notice.

                

        

      

      
        
          	2.	
                  We refer to the Tranche in the amount of [●], with an Interest Period ending on [●].

                

        

      

      
        
          	3.	
                  We request that the next Interest Period for the Tranche is [●].

                

        

      

      
        
          	4.	
                  This Selection Notice is irrevocable.

                

        

      

      Yours faithfully

      ....................................

      authorised signatory for

      FLEX LNG LTD.

      
        

        110 | 123

        
          

      

      

      

      SCHEDULE 4

      FORM OF TRANSFER CERTIFICATE

      	
              From:

            	
              [●] as Facility Agent

            
	 	 
	
              To:

            	
              [The Existing Lender] (the "Existing Lender") and [The New Lender]
                  (the "New Lender")

            
	 	 
	
              Dated:

            	 
	 	 

      USD 315,000,000 Term Loan Facility Agreement dated 20 December, 2017 (the "Facility Agreement")

      
        
          	1.	
                  We refer to the Facility Agreement. This agreement (the "Agreement") shall take effect as a Transfer Certificate for the purpose of the Facility Agreement.
                      Terms defined in the Facility Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.

                

        

      

      
        
          	2.	
                  We refer to Clause 28.5 (Procedure for transfer) of
                      the Facility Agreement:

                

        

      

      
        
          	

                	(a)	
                  The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender's
                      Commitment, rights and obligations referred to in the Schedule in accordance with Clause 28.5 (Procedure for transfer).

                

        

      

      
        
          	

                	(b)	
                  The proposed Transfer Date is [.].

                

        

      

      
        
          	

                	(c)	
                  The facility office, address and attention details for notices of the New Lender for the purposes of Clause 33.2 (Addresses) are set out in the Schedule.

                

        

      

      
        
          	3.	
                  The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in paragraph (c) of Clause 28.4 (Limitation of responsibility of Existing Lenders).

                

        

      

      
        
          	4.	
                  This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of
                      this Agreement.

                

        

      

      
        
          	5.	
                  This Agreement is governed by Norwegian law.

                

        

      

      
        
          	6.	
                  This Agreement has been entered into on the date stated at the beginning of this Agreement.

                

        

      

      
        

        111 | 123

        
          

      

      

      

      THE SCHEDULE

      Commitment/rights and obligations to be transferred

      [insert relevant details]

      [Facility Office address and attention details for notices and account details for payments,]

      	
              [Existing Lender]

            	
              [New Lender]

            
	 	 
	
              By:

            	
              By:

            
	 	 

      This Agreement is accepted as a Transfer Certificate for the purposes of the Facility Agreement by the Facility Agent
          and the Transfer Date is confirmed as [●].

      [Facility Agent]

      By:

      
        

        112 | 123

        
          

      

      

      

      SCHEDULE 5

          FORM OF COMPLIANCE CERTIFICATE

      	
              From:

            	
              FLEX LNG LTD.

            
	 	 
	
              To:

            	
              ABN AMRO Bank N.V. as Facility Agent

            
	 	 
	
              Dated:

            	 
	 	 

      Dear Sirs

      USD 315,000,000 Term Loan Facility Agreement dated 20 December, 2017 (the "Facility Agreement")

      
        
          	1.	
                  We refer to the Facility Agreement. This is a Compliance Certificate. Terms defined in the Facility Agreement have the same meaning when used in this
                      Compliance Certificate unless given a different meaning in this Compliance Certificate.

                

        

      

      
        
          	2.	
                  We confirm that:

                

        

      

      	
              Clause

            	
              Test

            	
              Figures/calculations

            	
              Compliance

            
	
              24.3(a)

            	
              Equity Ratio – Ultimate Parent

                  (consolidated)

            	 	 
	 	 	 	 
	 	
              A: Total Equity

            	 	 
	 	
              B: Total Assets

            	 	 
	 	 	 	 
	 	
              Requirement: ratio of A to B to be

                  minimum 0.25 to 1.0

            	 	
              [yes/no]

            
	 	 	 	 
	
              24.3(b)

            	
              Working Capital – Ultimate Parent

            	 	 
	 	 	 	 
	 	
              A: current assets

            	 	 
	 	
              B: current liabilities

            	 	 
	 	 	 	 
	 	
              Requirement: A to exceed B

            	 	
              [yes/no]

            
	 	 	 	 
	
              24.3(c)

            	
              Minimum Liquidity – Ultimate Parent

                  (consolidated)

            	 	 
	 	 	 	 
	 	
              A: Liquidity

            	 	 
	 	
              B: Interest bearing Financial Indebtedness

                  (excl. Sterna RCF)

            	 	 
	 	
              C: Cash and Cash Equivalents

            	 	 
	 	
              Requirement: A to be minimum the higher

                  of (i) USD 15,000,000 or (ii) 5% of the sum

            	 	
              [yes/no]

            

      
        

        113 | 123

        
          

      

      

      

      	 	
              of B less C.

            	 	 
	 	 	 	 
	
              24.4(a)

            	
              Working Capital – each Borrower

                  (unconsolidated) FLEX LNG ENDEAVOUR LIMITED.*

            	 	 
	 	 	 	 
	 	
              A: current assets

            	 	 
	 	
              B: current liabilities

            	 	 
	 	 	 	 
	 	
              Requirement: A to exceed B

            	 	
              [yes/no]

            
	 	 	 	 
	
              24.4(a)

            	
              Working Capital – each Borrower

                  (unconsolidated) FLEX LNG ENTERPRISE LIMITED.*

            	 	 
	 	 	 	 
	 	
              A: current assets

            	 	 
	 	
              B: current liabilities

            	 	 
	 	 	 	 
	 	
              Requirement: A to exceed B

            	 	
              [yes/no]

            
	 	 	 	 
	
              24.4(a)

            	
              Working Capital – each Borrower

                  (unconsolidated) FLEX LNG RANGER LIMITED.*

            	 	 
	 	 	 	 
	 	
              A: current assets

            	 	 
	 	
              B: current liabilities

            	 	 
	 	 	 	 
	 	
              Requirement: A to exceed B

            	 	
              [yes/no]

            
	 	 	 	 
	
              24.4(b)

            	
              Working Capital – each Borrower

                  (unconsolidated) FLEX LNG ENDEAVOUR LIMITED.*

            	 	 
	 	 	 	 
	 	
              A: Liquidity

            	 	 
	 	 	 	 
	 	
              Requirement: A to be minimum USD 1,200,000

            	 	
              [yes/no]

            
	 	 	 	 
	
              24.4(b)

            	
              Working Capital – each Borrower

                  (unconsolidated) FLEX LNG ENTERPRISE LIMITED.*

            	 	 
	 	 	 	 
	 	
              A: Liquidity

            	 	 
	 	 	 	 
	 	
              Requirement: A to be minimum USD 1,200,000

            	 	
              [yes/no]

            
	 	 	 	 

      

      

      
        

        114 | 123

        
          

      

      

      

      	
              24.4(b)

            	
              Working Capital – each Borrower

                  (unconsolidated) FLEX LNG RANGER LIMITED.*

            	 	 
	 	 	 	 
	 	
              A: Liquidity

            	 	 
	 	 	 	 
	 	
              Requirement: A to be minimum USD 1,200,000

            	 	
              [yes/no]

            

      
        
          	3	
                  We confirm that each Collateral Vessel is insured against such risks and in such amounts as set out in Appendix 1 hereto.

                

        

      

      
        
          	4.	
                  [Attached as Appendix 2 hereto are two independent valuations for the determination of the Fair Market Value of each Collateral Vessel.]**

                

        

      

      
        
          	5.	
                  [We confirm that no Default is continuing.]***

                

        

      

      	
              Signed

            	
              ................................

            	 
	 	
               [Chief Financial Officer] [Director]

            
	 	
              FLEX LNG LTD.

            
	 	 
	 	 
	 	 

      NOTES:

      
        
          	*	
                  Or a Replacement Borrower, in case of a Substitution

                

        

      

      
        
          	**	
                  When applicable (only semi-annually).

                

        

      

      
        
          	***	
                  If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

                

        

      

      
        

        115 | 123

        
          

      

      

      

      Appendix 1 – Insurances

      	
              Collateral

                  Vessel

            	
              Hull &

                  Machinery

            	
              Freight

                  Interest

            	
              Hull

                  Interest

            	
              P&I

            	
              War risk

            	
              Insured Amount

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

      

      
        

        116 | 123

        
          

      

      

      

      [Appendix 2 – Valuation reports]

       

        

      
        

        117 | 123

        
          

      

      

      

      SCHEDULE 6

          FORM OF SUBSTITUTION LETTER

      	
              From:

            	
              ABN AMRO Bank N.V. as Facility Agent for itself and each of the other parties to the Facility Agreement referred to below

            
	 	 
	
              To:

            	
              FLEX LNG LTD (as Ultimate Parent) as Obligors' agent

              FLEX LNG [ENDEAVOUR]/[ENTERPRISE]/[RANGER] LIMITED. (as Initial Borrower)

              FLEX LNG [TBD] LTD. (as Replacement Borrower)

            
	 	 
	
              Dated:

            	 
	 	 

      Dear Sirs,

      USD 315,000,000 Term Loan Facility Agreement dated 20 December, 2017 (the "Facility Agreement")

      
        
          	1.	
                  We refer to the Facility Agreement. This substitution letter (the "Substitution Letter") shall take effect as a Substitution Letter for the purposes of the Facility Agreement. Terms defined in the Facility Agreement have the same meaning in this Substitution Letter unless given a
                      different meaning in this Substitution Letter.

                

        

      

      
        
          	2.	
                  FLEX LNG [TBD] LTD. (the "Replacement Borrower")
                      agrees to become Replacement Borrower with respect to all amounts outstanding the Agreement and to be bound by the terms of the Agreement as joint and several borrower and Obligor pursuant to Clause 6 (Substitution) of the Agreement.

                

        

      

      
        
          	3.	
                  The Replacement Borrower's administrative details are as follows:

                

        

      

      Address:

      Email:

      Attention:

      
        
          	4.	
                  The Substitution Vessel [tbd]
                      will replace [tbd] and become a Collateral Vessel.

                

        

      

      
        
          	5.	
                  We confirm that the Repeating Representations are made by each of the Obligors and the Replacement Borrower on the date of this Substitution Letter and that
                      all Repeating Representations are true in all material respects on that date.

                

        

      

      
        
          	6.	
                  This Accession Letter is governed by Norwegian law and the Replacement Borrower has appointed [.] as its process agents in respect of this Substitution
                      Letter and the other Finance Documents.

                

        

      

      THIS SUBSTITUTION
            LETTER has been signed on behalf of the Ultimate Parent, the Initial Borrower and the Replacement Borrower and is delivered on the date stated above.

      
        

        118 | 123

        
          

      

      

      

      	
              Signed

            	
              ................................

            	 
	 	
              [Chief Financial Officer] [Director]

            
	 	
              FLEX LNG LTD. as agent on behalf of the Obligors

            
	 	 
	 	 
	
              Signed

            	
              ................................

            	 
	 	
              [Chief Financial Officer] [Director]

            
	 	
              [tbd]

            
	 	 
	 	 
	
              Signed

            	
              ................................

            	 
	 	
              [Chief Financial Officer] [Director]

            
	 	
              [tbd]

            
	 	 

      

      

      
        

        119 | 123

        
          

      

      

      

      SCHEDULE 7

          REPAYMENT SCHEDULE

      	 	 	 	
              Per Vessel

            	 	
              2 Vessels

            	 	
              3 Vessels

            
	 	 	 	
              Repayment

            	
              Available amount

            	 	
              Repayment

            	
              Available amount

            	 	
              Repayment

            	
              Available amount

            
	
              Year 1

            	
              Q1

            	 	 	
              105 000 000

            	 	 	
              210 000 000

            	 	 	 
	 	
              Q2

            	 	
              1 312 500

            	
              103 687 500

            	 	
              2 625 000

            	
              207 375 000

            	 	 	
              315 000 000

            
	 	
              Q3

            	 	
              1 312 500

            	
              102 375 000

            	 	
              2 625 000

            	
              204 750 000

            	 	
              3 937 500

            	
              311 062 500

            
	 	
              Q4

            	 	
              1 312 500

            	
              101 062 500

            	 	
              2 625 000

            	
              202 125 000

            	 	
              3 937 500

            	
              307 125 000

            
	
              Year 2

            	
              Q1

            	 	
              1 312 500

            	
              99 750 000

            	 	
              2 625 000

            	
              199 500 000

            	 	
              3 937 500

            	
              303 187 500

            
	 	
              Q2

            	 	
              1 312 500

            	
              98 437 500

            	 	
              2 625 000

            	
              196 875 000

            	 	
              3 937 500

            	
              299 250 000

            
	 	
              Q3

            	 	
              1 312 500

            	
              97 125 000

            	 	
              2 625 000

            	
              194 250 000

            	 	
              3 937 500

            	
              295 312 500

            
	 	
              Q4

            	 	
              1 312 500

            	
              95 812 500

            	 	
              2 625 000

            	
              191 625 000

            	 	
              3 937 500

            	
              291 375 000

            
	
              Year 3

            	
              Q1

            	 	
              1 312 500

            	
              94 500 000

            	 	
              2 625 000

            	
              189 000 000

            	 	
              3 937 500

            	
              287 437 500

            
	 	
              Q2

            	 	
              1 544 118

            	
              92 955 882

            	 	
              3 088 235

            	
              185 911 765

            	 	
              4 632 353

            	
              283 500 000

            
	 	
              Q3

            	 	
              1 544 118

            	
              91 411 765

            	 	
              3 088 235

            	
              182 823 529

            	 	
              4 632 353

            	
              278 867 647

            
	 	
              Q4

            	 	
              1 544 118

            	
              89 867 647

            	 	
              3 088 235

            	
              179 735 294

            	 	
              4 632 353

            	
              274 235 294

            
	
              Year 4

            	
              Q1

            	 	
              1 544 118

            	
              88 323 529

            	 	
              3 088 235

            	
              176 647 059

            	 	
              4 632 353

            	
              269 602 941

            
	 	
              Q2

            	 	
              1 544 118

            	
              86 779 412

            	 	
              3 088 235

            	
              173 558 824

            	 	
              4 632 353

            	
              264 970 588

            
	 	
              Q3

            	 	
              1 544 118

            	
              85 235 294

            	 	
              3 088 235

            	
              170 470 588

            	 	
              4 632 353

            	
              260 338 235

            
	 	
              Q4

            	 	
              1 544 118

            	
              83 691 176

            	 	
              3 088 235

            	
              167 382 353

            	 	
              4 632 353

            	
              255 705 882

            
	
              Year 5

            	
              Q1

            	 	
              1 544 118

            	
              82 147 059

            	 	
              3 088 235

            	
              164 294 118

            	 	
              4 632 353

            	
              251 073 529

            
	 	
              Q2

            	 	
              1 544 118

            	
              80 602 941

            	 	
              3 088 235

            	
              161 205 882

            	 	
              4 632 353

            	
              246 441 176

            
	 	
              Q3

            	 	
              1 544 118

            	
              79 058 824

            	 	
              3 088 235

            	
              158 117 647

            	 	
              4 632 353

            	
              241 808 824

            
	 	
              Q4

            	 	
              1 544 118

            	
              77 514 706

            	 	
              3 088 235

            	
              155 029 412

            	 	
              4 632 353

            	
              237 176 471

            
	
              Year 6

            	
              Q1

            	 	
              1 544 118

            	
              75 970 588

            	 	
              3 088 235

            	
              151 941 176

            	 	
              4 632 353

            	
              232 544 118

            
	 	
              Q2

            	 	
              1 544 118

            	
              74 426 471

            	 	
              3 088 235

            	
              148 852 941

            	 	
              4 632 353

            	
              227 911 765

            
	
              Balloon:

            	 	 	 	
              74 426 471

            	 	 	
              148 852 941

            	 	 	
              227 911 765

            

      

      

      
        

        120 | 123

        
          

      

      

      

      SCHEDULE 8

          FORM OF SUBSTITUTION CONFIRMATION LETTER

      	
              From:

            	
              FLEX LNG LTD (as Ultimate Parent) (as Obligors' agent)

              FLEX LNG [ENDEAVOUR]/[ENTERPRISE]/[RANGER] LIMITED. (as Initial Borrower)

              FLEX LNG [TBD] LTD. (as Replacement Borrower)

              The Finance Parties

            
	 	 
	
              To:

            	
              ABN AMRO Bank N.V. as Facility Agent for itself and each of the other parties to the Facility Agreement referred to below

            
	 	 
	
              Dated:

            	 
	 	 

      Dear Sirs,

      USD 315,000,000 Term Loan Facility Agreement dated 20 December, 2017 (the "Facility Agreement")

      
        
          	1.	
                  We refer to the Agreement. The purpose of this letter is to give notice that a Substitution has become effective and the Substitution has occurred.

                

        

      

      
        
          	2.	
                  Terms defined in the Agreement have the same meaning in this letter unless given a different meaning herein.

                

        

      

      
        
          	3.	
                  We hereby confirm that we have received all the documents and other evidence listed in paragraph (b) of Clause 6.1 (Substitution) of the Facility Agreement (in form and substance satisfactory to us).

                

        

      

      
        
          	4.	
                  We consequently confirm that:

                

        

      

      
        
          	

                	(a)	
                  the Substitution;

                

        

      

      
        
          	

                	(b)	
                  the accession of the Replacement Borrower as Borrower;

                

        

      

      
        
          	

                	(c)	
                  the secession of [Initial Borrower] as Borrower; and

                

        

      

      
        
          	

                	(d)	
                  the Substitution Vessel [tbd] replacing [tbd] as a Collateral Vessel, shall become effective as of [time] on [date] and that this shall represent the
                      "Substitution Date" which occurred at such time in accordance with Clause 6 (Substitution) of the Facility Agreement.

                

        

      

      
        
          	5.	
                  This letter is governed by Norwegian law.

                

        

      

      Yours Sincerely

      For and on behalf of

      ABN AMRO BANK N.V.

      (acting in our capacity as Facility Agent only)

      

      

      By:

      

      

      Name:

      
        

        121 | 123

        
          

      

      

      

      SCHEDULE 9

          LIST OF COLLATERAL VESSELS

      Initial Vessels

      	
              Hull

                  number

            	
              Vessel name

            	
              Yard

            	
              Prop.

            	
              Year

                  Build

            	
              Capacity (m3)

            	
              Employment

            
	
              2447

            	
              FLEX

              Endeavour

            	
              DSME

            	
              MEGI

            	
              2018

            	
              173,400

            	
              Available Q1 2018

            
	
              2448

            	
              FLEX Enterprise

            	
              DSME

            	
              MEGI

            	
              2018

            	
              173,400

            	
              Available Q1 2018

            
	
              2107

            	
              FLEX Ranger

            	
              SHI

            	
              MEGI

            	
              2018

            	
              174,000

            	
              Available Q2 2018

            

      

      

      

      

      Substitution Vessels

      	
              Hull

                  number

            	
              Vessel name

            	
              Yard

            	
              Prop.

            	
              Year

                  Build

            	
              Capacity (m3)

            	
              Employment

            
	
              2108

            	
              FLEX Rainbow

            	
              SHI

            	
              MEGI

            	
              2018

            	
              174,000

            	
              Available Q3 2018

            
	
              2470

            	
              FLEX

              Constellation

            	
              DSME

            	
              MEGI

            	
              2019

            	
              173,400

            	
              Available Q2 2019

            
	
              2471

            	
              FLEX

              Courageous

            	
              DSME

            	
              MEGI

            	
              2019

            	
              173,400

            	
              Available Q3 2019

            

      

      

      
        

        122 | 123

        
          

      

      

      

      SCHEDULE 10

          LIST OF OPERATING ACCOUNTS

      	
              Account holder

               

                

            	
              Account number

            
	
              FLEX LNG Endeavour Limited

               

                

            	
              1250.05.73498

            
	
              FLEX LNG Enterprise Limited

               

                

            	
              1250.05.73501

            
	
              FLEX LNG Ranger Limited

               

                

            	
              1250.05.73528

            

      

      

      

      

      

      

      

      

    

    123 | 123Exhibit 4.3

    

     

      

    
      Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) would be
        competitively harmful if publicly disclosed.

      

      

       

    
      	
              1. Shipbroker

              N/A

            	
               

              BIMCO STANDARD BAREBOAT CHARTER

              CODE NAME: "BARECON 2001"

            	
              BIMCO

               

               

              PART I

            
	
              2. Place and date

               

               

            
	
              3. Owners/Place of business (Cl. 1)

              [                                                                                                                    ]

                [                                                                    
                    ]

                  

              

               

               

            	
              4. Bareboat Charterer/Place of Business (Cl. 1)

              Flex LNG Rainbow Limited

               

              The Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands

            
	
              5. Vessel’s name, call sign and flag (Cl. 1
                  and 3)

              Flex Rainbow

              IMO No. 9709037

              Marshall Islands

            
	
              6. Type of Vessel

              Liquified Natural Gas Carrier

            	
              7. GT/NT

              115,174

              34,860

            
	
              8. When/Where built

              2018

              Samsung Heavy Industry Co. Ltd.

            	
              9. Total DWT (abt.) in metric tons on summer freeboard

               

            
	
              10. Classification Society (Cl. 3)

              American Bureau of Shipping

            	
              11. Date of last special survey by the Vessel’s classification society

               

            
	
              12. Further particulars of Vessel (also indicate minimum number of months’ validity of class certificates agreed acc. to Cl. 3)

               

            
	
              13. Port or Place of delivery (Cl. 3)

              As per MOA (as defined in Additional Clause 32 (Definitions))

            	
              14. Time for delivery (Cl. 4)

              See Additional Clause 35 (Pre-delivery and delivery)

            	
              15. Cancelling date (Cl. 5)

              As per MOA (as defined in Additional Clause 32 (Definition))

            
	
              16. Port or Place of redelivery (Cl. 15)

              See Additional Clause 43 (Redelivery)

            	
              17. No. of months’ validity of trading and class certificates upon redelivery (Cl. 15)

               

            
	
              18. Running days’ notice if other than stated in Cl.
                      4

              N/A

            	
              19. Frequency of dry-docking (Cl. 10(g))

              In accordance with Classification Society or flag state requirements

            
	
              20. Trading Limits (Cl. 6)

              Worldwide within Institute Warranty Limits (IWL)

            
	
              21. Charter period (Cl. 2)

              See definition of “Charter Period” under Additional Clause 32 (Definitions)

            	
              22. Charter hire (Cl. 11)

              See Additional Clause 41 (Hire)

            
	
              23. New class and other safety requirements (state percentage of Vessel’s insurance value acc. to Box 29)(Cl. 10(a)(ii))

              See Additional Clause 40(b) (Structural changes and alterations)

            
	
              24. Rate of interest payable acc. to Cl. 11(f) and, if applicable, acc. to PART IV

              See Additional Clause 41 (Hire)

            	
              25. Currency and method of payment (Cl. 11)

              US Dollars (See also Additional Clause 41 (Hire))

            
	
              26. Place of payment; also state beneficiary and bank account (Cl. 11)

              See Additional Clause 41 (Hire)

            	
              27. Bank guarantee/bond (sum and place) (Cl. 24)
                  (optional)

              See Clause 24

            

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      “BARECON 2001” STANDARD BAREBOAT CHARTER

      PART I

      	
              28. Mortgage(s), if any (state whether 12(a) or (b) applies; if 12(b)
                  applies state date of Financial Instrument and name of Mortgagee(s)/Place of business)(Cl. 12)

              Clause 12 applies; form of Financial Instrument and name of mortgagee
                  to be determined

            	
              29. Insurance (hull and machinery and war risks)(state value acc. to Cl. 13(f) or, if applicable, acc. to Cl. 14(k))(also state
                  if Cl. 14 applies)

              See Additional Clause 42 (Insurance)

               

            
	
              30. Additional insurance cover, if any, for Owners’ account limited to (Cl. 13(b) or, if applicable, Cl. 14(g))

              No limitation

            	
              31. Additional insurance cover, if any, for Charterers’ account limited to (Cl. 13(b) or, if applicable, Cl. 14(g))

              No limitation

               

            
	
              32. Latent defects (only to be filled in if period other than stated in Cl. 3)

               

            	
              33. Brokerage commission and to whom payable (Cl. 27)

              N/A

            
	
              34. Grace period (state number of clear banking dates)(Cl.

                      28)

              See Additional Clause 51 (Termination Events)

            	
              35. Dispute Resolution (state 30(a), 30(b) or 30(c);
                  if 30(c) agreed Place of Arbitration must be stated (Cl. 30)

              (c) See Additional Clause 77 (Law and Jurisdiction)

            
	
              36. War cancellation (indicate countries agreed)(Cl.
                      26(f))

              N/A

            
	
              37. Newbuilding Vessel (indicate with ”yes” or “no” whether PART III applies)(optional)

              No, Part III does not apply

            	
              38. Name and place of Builders (only to be filled in if PART

                      III applies)

              Part III does not apply

            
	
              39. Vessel’s Yard Building No. (only to be filled in if PART

                      III applies)

              Part III does not apply

            	
              40. Date of Building Contract (only to be filled in if PART

                      III applies)

              Part III does not apply

            
	
              41. Liquidated damages and costs shall accrue to (state party acc. to Cl. 1)

              a) N/A

              b) N/A

              c) N/A

            
	
              42. Hire/Purchase agreement (indicate with “yes” or “no” whether PART IV applies)(optional)

              No

            	
              43. Bareboat Charter Registry (indicate “yes” or “no” whether PART V applies)(optional)

              Part V does not apply

            
	
              44. Flag and Country of the Bareboat Charter Registry (only to be filled in if PART V applies)

              Part V does not apply

            	
              45. Country of the Underlying Registry (only to be filled in if PART V applies)

              Part V does not apply

            
	
              46. Number of additional clauses covering special provisions, if agreed

              Claues 32 (Definitions) to Clause 79 (FATCA)

            
	
               

              PREAMBLE - It is mutually agreed that this Contract shall be performed subject to the conditions contained in this Charter which
                  shall Include PART I and PART II. In the event of a
                  conflict of conditions, the provisions of PART I shall prevail over those of PART II to the extent of such conflict but no further. It Is further mutually agreed that PART III and/or PART IV and/or PART V shall only apply and only form part
                  of this Charter If expressly agreed and stated in Boxes 37, 42
                  and 43. If PART III and/or PART IV and/or PART V apply, it Is further agreed that In the event of a
                  conflict of conditions, the provisions of PART l and PART II shall prevail over those of PART III and/or PART IV and/or PART V to the extent of such conflict but no further.

               

            
	
              
                Signature (Owners)

                [                                  ]

              [                                  ] 

                [                                  ] 

            	
              Signature (Charterers)

               

            

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      

      

      
        
          

      

      PART II

      “BARECON 2001” Standard Bareboat Charter

      
        
          	1.	
                  Definitions

                

        

      

      In this Charter, the following terms shall have the meanings hereby assigned to them:

      “The Owners" shall
          mean the party identified in Box 3;

      “The Charterers"
          shall mean the party identified in Box 4;

      “The Vessel” shall
          mean the vessel named in Box 5 and with particulars as stated in Boxes 6
          to 12.

      “Financial Instrument” 

          any Finance Document (as defined in Additional Clause 32 (Definitions) and Additional Clause 33 (Interpretations) means the mortgage, deed covenant or other such financial security instrument as annexed to this Charter and stated in Box 28.

      
        
          	2.	
                  Charter Period

                

        

      

      In consideration of the hire detailed in Box

              22, the Owners have agreed to let and the Charterers have agreed to hire the Vessel for the period stated in Box 21 (“The Charter Period”).

      
        
          	3.	
                  Delivery

                

        

      

      (not applicable when Part III applies, as indicated in Box 37)

      (a)     The Owners shall before and at
              the time of delivery exercise due diligence to make the Vessel seaworthy

      And in every respect ready-in-hull,
              machinery and equipment for service under this Charter.

      The Vessel shall be delivered by the
              Owners and taken over by the Charterers at the port or place indicated in Box 13 in such ready safe berth as the Charterers may direct.

      (b)     The Vessel shall be properly
              documented on delivery in accordance with the laws of the flag State indicated in Box 5 and the requirements of the classification society stated in Box 10.  The Vessel upon delivery shall have her survey cycles up to date and trading and
              class certificates valid for at least the number of months agreed in Box 12.

      (c)     The delivery of the Vessel by
              the Owners and the taking over of the Vessel by the Charterers shall constitute a full performance by the Owners of all the Owners’ obligations under this Clause 3, and thereafter the Charterers shall not be entitled to make or assert any claim against the Owners on account
              of any conditions, representations or warranties expressed or implied with respect to the Vessel but the Owners shall be liable for the cost of but not the time for repairs or renewals occasioned by the latent defects in the Vessel, her
              machinery or appurtenances, existing at the time of delivery under this Charter, provided such defects have manifested themselves within twelve (12) months after delivery unless otherwise provided in Box 32.

      
        
          	4.	
                  Time for Delivery

                

        

      

      (not applicable when Part III applies, as indicated in Box 37)

      The Vessel shall not be delivered
              before the date indicated in Box 14
              without the Charterers’ consent and the Owners shall exercise due diligence to deliver the Vessel not later than the date indicated in Box

                15.  Unless otherwise agreed in Box

                18, the Owners shall give the Charterers not less than thirty (30) running days’ preliminary and not less than fourteen (14) running
              days’ definite notice of the date on which the Vessel is expected to be ready for delivery.

      The Owners shall keep the Charterers
              closely advised of possible changes in the Vessel’s position.

      
        
          	5.	
                  Cancelling

                

        

      

      (not applicable when Part III applies, as indicated in Box 37)

      (a)     Should the Vessel not be
              delivered latest by the cancelling date indicated in Box 15, the Charterers shall have the option of cancelling this Charter by giving the Owners notice of cancellation within thirty-six (36) running hours after the cancelling date stated in Box 15, failing which this
              Charter shall remain in full force and effect.

      (b)     If it appears that the Vessel
              will be delayed beyond the cancelling date, the Owners may, as soon as they are in a position to state with reasonable certainty the day on which the Vessel should be ready, give notice thereof to the Charterers asking whether they will
              exercise their option of cancelling, and the option must then be declared within one hundred and sixty-eight(168) running hours of the receipt by the Charterers of such notice or within thirty-six (36) running hours after the cancelling date,
              whichever is the earlier.  If the Charterers do not then exercise their option of cancelling, the seventh day after the readiness date stated in the Owners’ notice shall be substituted for the cancelling date indicated in Box 15 for the purpose of this Clause 5.

      (c)     Cancellation under this Clause 5 shall be without prejudice to any claim the Charterers
              may otherwise have on the Owners under this Charter.

      
        
          	6.	
                  Trading Restrictions

                

        

      

      The Vessel shall be employed in lawful trades for the carriage of suitable lawful merchandise within the trading limits
          indicated in Box 20.

      The Charterers undertake not to employ the Vessel or suffer the Vessel to be employed otherwise than in conformity with the
          terms of the contracts of insurance (including any warranties expressed or implied therein) without first obtaining the consent of the insurers to such employment and complying with such requirements as the extra premium or otherwise as the
          insurers may prescribe.

      The Charterers also undertake not to employ the Vessel or suffer her employment in any trade or business which is forbidden
          by the law of any country to which the Vessel may sail or is otherwise illicit or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to condemnation, destruction, seizure or confiscation.

      Notwithstanding any other provisions contained in this Charter it is agreed that nuclear fuels or radioactive products or
          waste are specifically excluded from the cargo permitted to be loaded or carried under this Charter.  This exclusion does not apply to radio-isotopes used or intended to be used for any industrial, commercial, agricultural, medical or scientific
          purposes provided the Owners' prior approval has been obtained to loading thereof.

      
        
          	7.	
                  Surveys on Delivery and Redelivery

                

        

      

      (not applicable when Part III applies, as indicated in Box 37)

      Provisions on delivery see Clause 46.2.

      The Owners and Charterers shall each
              appoint surveyors for the purpose of determining and agreeing in writing the condition of the Vessel at the time of delivery and redelivery hereunder.  The Owners shall bear all expenses of the On-hire Survey including loss of time, if any,
              at the daily equivalent to the rate of hire or pro rate thereof.

      
        
          	8.	
                  Inspection – See Additional Clause 49(cc)

                      (Inspection of Vessels and inspection reports)

                

        

      

      The Owners shall have the right at any
              time after giving reasonable notice to the Charterers to inspect or survey the Vessel or instruct a duly authorised surveyor to carry out such survey on their behalf:

      (a)     to ascertain the condition of
              the Vessel and satisfy themselves that the Vessel is being properly repaired and maintained.  The costs and fees for such inspection or survey shall be paid by the Owners unless the Vessel is found to require repairs or maintenance in order
              to achieve the condition so provided;

      (b)     in dry-dock if the Charterers
              have not dry-docked Her in accordance with Clause 10(g).  The costs and fees for such inspection or survey shall be paid by the Charterers; and

      (c)     for any other commercial
              reason they consider necessary (provided it does not unduly interfere with the commercial operation of the Vessel).  The costs and

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      PART II

      “BARECON 2001” Standard Bareboat Charter

      fees for such inspection and survey
              shall be paid by the Owners.

      All time used in respect of
              inspection, survey or repairs shall be for the Charterers account and form part of the Charter Period.

      The Charterers shall also permit the
              Owners to inspect the Vessel’s log books whenever requested and shall whenever required by the Owners furnish them with full information regarding any casualties or other accidents or damage to the Vessel.

      
        
          	9.	
                  Inventories, Oil and Stores

                

        

      

      A complete inventory of the Vessel’s entire equipment, outfit including spare parts, appliances and of all consumables
          stores on board the Vessel shall be made by the Charterers in conjunction with the Owners on delivery and again on redelivery of the Vessel.  See also Additional Clause 38 (Bunkers and Luboils).The Charterers and the
              Owners, respectively, shall at the time of delivery and redelivery take over and pay for all bunkers, lubricating oil, unbroached provisions, paints, ropes and other consumable stores (excluding spare parts) in the said Vessel at the then
              current market prices at the ports of delivery and redelivery, respectively.  The Charterers shall ensure that all spare part listed in the
              inventory and used during the Charter Period are replaced at their expense prior to redelivery of the Vessel. 

      
        
          	10.	
                  Maintenance and Operation

                

        

      

      (a)(i)Maintenance and
              Repairs - During the Charter Period the Vessel shall be in the full possession and at the absolute disposal for all purposes of the Charterers and under their complete control in every respect.  The Charterers shall maintain the
          Vessel, her machinery, boilers, appurtenances and spare parts in a good state of repair, in efficient operating condition and in accordance with good commercial maintenance practice and, except as provided for in Clause 14(I), if applicable, at their own expense they shall at all times keep the Vessel’s Class fully up to date with the Classification Society indicated in Box 10 and maintain all other necessary certificates in force at all times.

      
        
          	

                	(ii)	
                  New Class and Other Safety Requirements - In the event of any improvement, structural changes or new equipment becoming necessary for the continued operation of the Vessel by reason of new class requirements or
                          by compulsory legislation costing (excluding the Charterers’ loss of time) more than the percentage stated in Box 23, or if Box 23 is left blank, 5 per cent. of the Vessel’s insurance value as stated in Box

                            29, then the extent, if any, to which the rate of hire shall be varied and the ratio in which the cost of compliance shall
                          be shared between the parties concerned in order to achieve a reasonable distribution thereof as between the Owners and the Charterers having regard, inter alia, to the length of the period remaining under this Charter shall, in
                          the absence of agreement, be referred to the dispute resolution method agreed in Clause 30.

                

        

      

      
        
          	

                	(iii)	
                  Financial Security - The Charterers shall maintain financial
                      security or responsibility in respect of third party liabilities as required by any government, including federal, state or municipal or other division or authority thereof, to enable the Vessel, without penalty or charge, lawfully to
                      enter, remain at, or leave any port, place, territorial or contiguous waters of any country, state or municipality in performance of this Charter without any delay.  This obligation shall apply whether or not such requirements have
                      been lawfully imposed by such government or division or authority thereof.

                

        

      

      The Charterers shall make and maintain all arrangements by bond or otherwise as may be necessary to satisfy such
          requirements at the Charterers’ sole expense and the Charterers shall indemnify the Owners against all consequences whatsoever (including loss of time) for any failure or inability to do so.

      (b)     Operation of the Vessel
          - The Charterers shall at their own expense and by their own procurement man, victual, navigate, operate, supply, fuel and, whenever required, repair the Vessel during the Charter Period and they shall pay all charges and expenses of every kind
          and nature whatsoever incidental to their use and operation of the Vessel under this Charter, including annual flag State fees and any foreign general municipality and/or state taxes.  The Master, officers and his crew of the Vessel shall be the
          servants of the Charterers for all purposes whatsoever, even if for any reason appointed by the Owners.

      Charterers shall comply with the regulations regarding officers and crew in force in the country of the Vessel’s flag or
          any other applicable law.

      (c)     The Charterers shall keep the Owners and the mortgagee(s) advised of the intended employment, planned dry docking
          and major repairs of the Vessel, as reasonably required. See also Additional Clause 60 (Operational notifiable Events).

      (d)     Flag and Name of Vessel - During the Charter Period, the
              Charterers shall have the liberty to paint the Vessel in their own colours, install and display their funnel insignia and fly their own house flag.  The Charterers shall also have the liberty, with the Owners’ consent, which shall not be
              unreasonably withheld, to change the flag and/or name of the Vessel during the Charter Period. Painting and re-painting, instalment and re-instalment, registration and re-registration, if required by the Owners, shall be at the Charterers’
              expense and time.  See also Additional Clause 40 (Structural changes and alterations) and Additional Clause 53 (Name of Vessel).

      (e)     Changes to the Vessel - Subject to clause 10(a)(ii), the
              Charterers shall make no structural changes in the Vessel or changes in the machinery, boilers, appurtenances or spare parts thereof without in each instance first securing the Owners’ approval thereof.  If the Owners so agree, the Charterers
              shall, if the Owners so require, restore the Vessel to its former condition before the termination of this Charter.

      (f)     Use of the Vessel’s Outfit,
              Equipment and Appliances – The Charterers shall have the use of all outfit, equipment, and appliances on board the Vessel at the time of delivery, provided the same or their substantial equivalent shall be returned to the Owners on
          redelivery in the same good order and condition as when received, ordinary wear and tear expected.  The Charterers shall from time to time during the Charter Period replace such items of equipment as shall be so damaged or worn as to be unfit for
          use.  The Charterers are to procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as not to diminish the value of the Vessel. 
          The Charterers have the right to fit additional equipment at their expense and risk but title to such additional equipment shall be deemed to have passed to the
              Owners immeditatly upon such fitting and the Charterers shall remove such equipment at the end of the period if requested by the Owners.  Any equipment including radio equipment on hire on the Vessel at time of delivery shall be
          kept and maintained by the Charters and the Charterers shall assume the obligations and liabilities of the Owners under any lease contracts in connection therewith and shall reimburse the Owners for all expenses incurred in connection therewith,
          also for any new equipment required in order to comply with radio regulations.

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      

      

      (g)     Periodical Dry-Docking
          – The Charters shall dry-dock the Vessel and clean and paint her underwater parts whenever the same may be necessary, but not less than once during the period stated in Box

              19 or, if Box 19 has been left blank, every sixty (60) calendar months after delivery or such other period as may be required by the
          Classification Society or Flag State.

      
        
          	11.	
                  Hire – See Additional Clause 41 (Hire)

                

        

      

      (a)     The Charterers shall pay hire
              due to the Owners punctually in accordance with the terms of this Charter in respect of which time shall be of the essence.

      (b)     The Charterers shall pay to
              the Owners for the hire of the Vessel a lump sum in the amount indicated in Box 22 which shall be payable no later than every thirty (30) running days in advance, the first lump sum being payable on the date and hour of the Vessel’s delivery to the Charterers.  Hire
              shall be paid continuously throughout the Charter Period.

      (c)     Payments of hire shall be made
              in cash without discount in the currency and in the manner indicated in Box 25 and at the place mentioned in Box 26.

      (d)     Final payment of hire, if for
              a period less than thirty (30) running days, shall be calculated proportionally according to the number of days and hours remaining before redelivery and advance payment to be effected accordingly.

      (e)     Should the Vessel be lost or
              missing, hire shall cease from the date and time when she was lost or last heard of.  The date upon which the Vessel is to be treated as lost or missing shall be ten (10) days after the Vessel was last reported or when the Vessel is posted as
              missing by Lloyd’s, whichever occurs first.  Any hire paid in advance to be adjusted accordingly.

      (f)     Any delay in payment of higher
              shall entitle the Owners to interest at the rate per annum as agreed in Box 24.  If Box 24 has not
              been filled in, the three months Interbank offered rate in London (LIBOR or is successor) for the currency stated in Box 25, as quoted by the British Bankers’ Association (BBA) on the date when the hire fell due, increased by 2 per cent., shall apply.

      (g)     Payments of interest do under
            subclause 11(f) shall be made
              within seven (7) running days of the date of the Owners invoice specifying the amount payable or, in the absence of an invoice, at the time of the next hire payment date.

      
        
          	12.	
                  Mortgage – See Additional Clause 46 (Owners’ mortgage) and Additional Clause 49(n) (Further assurance)

                

        

      

      (only to apply if Box
              28 has been appropriately filled in)

      
        
          	*)	
                  (a)     The Owners warrant that they have not effected any mortgage(s)
                          of the Vessel and that they shall not effect any mortgage(s) without the prior consent of the Charterers, which shall not be unreasonably withheld.

                

        

      

      
        
          	*)	
                  (b)     The Vessel chartered under this Charter is financed by a
                          mortgage according to the Financial Instrument.  The Charterers undertake to comply, and provide such information and documents to enable the Owners to comply, with all such instructions or directions in regard to the employment,
                          insurances, operation, repairs and maintenance of the Vessel as laid down in the Financial Instrument or as may be directed from time to time during the currency of the Charter by the mortgagee(s) in conformity with the Financial
                          Instrument.  The Charterers confirm that, for this purpose, they have acquainted themselves with all relevant terms, conditions and provisions of the Financial Instrument and agree to acknowledge this in writing in any form that
                          may be required by the mortgagee(s).  The Owners warrant that they have not effected any mortgage(s) other than stated in Box 28 and that they shall not agree to any amendment of the mortgage(s) referred to in Box 28 or effect any other mortgage(s) without the prior consent of the Charterers,
                          which shall not be unreasonably withheld.

                

        

      

      
        
          	*)	
                  (Optional, Clauses 12(a) and 12(b) are alternatives; indicate alternative agreed in Box 28)

                

        

      

      
        
          	13.	
                  Insurance and Repairs – See Additional Clause 42 (Insurance)

                

        

      

      (a)     During the Charter Period the
              Vessel shall be kept insured by the Charterers at their expense against hull and machinery, war and Protection and Indemnity risks (and any risks against which it is compulsory to insure for the operation of the Vessel, including maintaining financial security in
              accordance with sub clause 10(a)(iii)) in such form as the Owners shall in writing approve, which approval shall not be unreasonably withheld.  Such insurances shall be arranged by the Charterers to protect the interests of both the Owners
              and the Charterers and the mortgagee(s) (if any), and The Charterers shall be at liberty to protect under such insurances the interests of any managers they may appoint.  Insurance policies shall cover the Owners and the Charterers according
              to their respective interests.  Subject to the provisions of the Financial Instrument, if any, and the approval of the Owners and the insurers, the Charterers shall effect all insured repairs and shall undertake settlement and reimbursement
              from the insurers of all costs in connection with such repairs as well as insured charges, expenses and liabilities to the extent of coverage under the insurances herein provided for.

      The Charterers also to remain
              responsible for and to effect repairs and settlement of costs and expenses incurred thereby in respect of all other repairs not covered by the insurances and/or not exceeding any possible franchise(s) or deductibles provided for in the
              insurance.

      All time used for repairs under the
              provisions of sub-clause 13(a)
              and for repairs of latent defects according to Clause 3(c) above, including any deviation, shall be the Charterers’ account.

      (b)     If the conditions of the above
              insurances permit additional insurance to be placed by the parties, such cover shall be limited to the amount for each party set out in Box

                30 and Box 31, respectively.  The Owners or the Charterers as the case may be shall immediately furnish the other party with particulars of any additional insurance effected, including copies of any
              cover notes or policies and the written consent of the insurers of any such required insurance in any case where the consent of such insurers are necessary.

      (c)     The Charterers shall upon the
              request of the Owners, provide information and promptly execute such documents as may be required to enable the Owners to comply with the insurance provisions of theeach Financial Instrument.

      (d)     Subject to the provisions of
              the Financial Instrument, if any, should the Vessel become an actual, constructive, compromised or agreed total loss under the insurances required under sub-clause

                13(a), all insurance payments for such loss shall be paid to the Owners who shall distribute the moneys between the Owners and the
              Charterers according to their respective interests.The Charterers undertake to notify the Owners and the mortgagee(s), if any, of any occurrences in consequence of which the Vessel is likely to become a total loss as defined in this Clause.

      (e)     The Owners shall upon the
              request of the Charterers, promptly execute such documents as may be required to enable the Charterers to abandon the Vessel to insurers and claim a constructive total loss.

      (f)     For the purpose of insurance
              coverage against hull and machinery and war risks under the provisions of sub-clause 13(a), the value of the Vessel is the sum indicated in Box 29.

      
        
          	14.	
                  Insurance, Repairs and Classification

                

        

      

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      PART II

      “BARECON 2001” Standard Bareboat Charter

      

      

       (Optional, only
              to apply if expressly agreed and stated in Box 29, in which event Clause 13
              shall be considered deleted).

      (a)     During the Charter Period the
              Vessel shall be kept insured by the Owners at their expense against hull and machinery and war risks under the form of policy or policies attached hereto.  The Owners and/or insurers shall not have any right of recovery or subrogation against
              the Charterers on account of loss of or any damage to the Vessel or her machinery or appurtenances covered by such insurance, or on account of payments made to discharge claims against or liabilities of the Vessel or the Owners covered by
              such insurance. Insurance policies shall cover the Owners and the Charterers according to their respective interests.

      (b)     During the Charter Period the
              Vessel shall be kept insured by the Charterers at their expense against Protection and Indemnity risks (and any risks against which it is compulsory to insure for the operation of the Vessel, including maintaining financial security in
              accordance with sub-clause 10(a)(iii))
              in such form as the Owners shall in writing approve which approval shall not be unreasonably withheld.

      (c)     In the event that any act or
              negligence of the Charterers shall vitiate any of the insurance herein provided, the Charterers shall pay to the Owners all losses and indemnify the Owners against all claims and demands which would otherwise have been covered by such
              insurance.

      (d)     The Charterers shall, subject
              to the approval of the Owners or Owners' Underwriters, effect all insured repairs, and the Charterers shall undertake settlement of all miscellaneous expenses in connection with such repairs as well as all insured charges, expenses and
              liabilities to the extent of coverage under the insurances provided for under the provisions of sub-clause 14(a).  The Charterers to be secured reimbursement through the Owners' Underwriters for such expenditures upon presentation of accounts.

      (e)     The Charterers to remain
              responsible for and to effect repairs and settlement of costs and expenses incurred thereby in respect of all other repairs not covered by the insurances and/or not exceeding any possible franchise(s) or deductibles provided for in the
              insurances.

      (f)     All time used for repairs
              under the provisions of sub-clauses 14(d) and 14(e) and for repairs of latent defects according to Clause 3 above, including any deviation, shall be for the
              Charterers' account and shall form part of the Charter Period.

      The Owners shall not be responsible
              for any expenses  as are incident to the use and operation of the Vessel for such time as may be required to make such repairs.

      (g)     If the conditions of the above
              insurances permit additional insurance to be placed by the parties such cover shall be limited to the amount for each party set out in Box

                30 and Box 31, respectively.  The Owners or the Charterers as the case may be shall immediately furnish the other party with particulars of any additional insurance effected, including copies of any
              cover notes or policies and the written consent of the insurers of any such required insurance in any case where the consent of such insurers is necessary.

      (h)     Should the Vessel become an
              actual, constructive, compromised or agreed total loss under the insurances required under sub-clause 14(a), all insurance payments for such loss shall be paid to the Owners, who shall distribute the moneys between themselves and the Charterers according to their
              respective interests.

      (i)     If the Vessel becomes an
              actual, constructive, compromised or agreed total loss under the insurances arranged by the Owners in accordance with sub-clause 14(a), this Charter shall terminate as of the date of such loss.

      (j)     The Charterers shall upon the
              request of the Owners, promptly execute such documents as may be required to enable the Owners to abandon the Vessel to the insurers and claim a constructive total loss.

      (k)     For the purpose of insurance
              coverage against hull and machinery and war risks under the provisions of sub-clause 14(a), the value of the Vessel is the sum indicated in Box 29.

      (I)     Notwithstanding anything
              contained in sub-clause 10(a), it is agreed that under the provisions of Clause 14, if applicable, the Owners shall keep the Vessel's Class fully up to date with the Classification Society indicated in Box 10 and maintain all other necessary certificates in force at all times.

      
        
          	15.	
                  Redelivery – See Additional Clause 43 (Redelivery and
                          Additional Clause 44 (Redelivery Conditions)

                

        

      

      At the expiration of the Charter
              Period the Vessel shall be redelivered by the Charterers to the Owners at a safe and ice-free port or place as indicated in Box 16, in such ready safe berth as the Owners may direct.  The Charterers shall give the Owners not less than thirty (30) running days' preliminary notice of expected
              date, range of ports of redelivery or port or place of redelivery and not less than fourteen (14) running days' definite notice of expected date and port or place of redelivery.  Any changes thereafter in the Vessel's position shall be
              notified immediately to the Owners.

      The Charterers warrant that they will
              not permit the Vessel to commence a voyage (including any preceding ballast voyage) which cannot reasonably be expected to be completed in time to allow redelivery of the Vessel within the Charter Period.  Notwithstanding the above, should
              the Charterers fail to redeliver the Vessel within The Charter Period, the Charterers shall pay the daily equivalent to the rate of hire stated in Box 22 plus 10 per cent. or to the market rate, whichever is the higher, for the number of days by which the Charter Period is
              exceeded.  All other terms, conditions and provisions of this Charter shall continue to apply.

      Subject to the provisions of Clause 10, the Vessel shall be redelivered to the Owners in the
              same or as good structure, state, condition and class as that in which she was delivered, fair wear and tear not affecting class excepted.

      The Vessel upon redelivery shall have
              her survey cycles up to date and trading and class certificates valid for at least the number of months agreed in Box 17.

      
        
          	16.	
                  Non-Lien

                

        

      

      The Charterers will not suffer, nor permit to be continued, any lien or encumbrance incurred by them or their agents, which
          might have priority over the title and interest of the Owners in the Vessel.  The Charterers further agree to fasten to the Vessel in a conspicuous place and to keep so fastened during the Charter Period a notice reading as follows:

      “This Vessel is the property of (name of Owners).  It is under charter to (name of Charterers) and by the terms of the
          Charter Party neither the Charterers nor the Master have any right, power or authority to create, incur or permit to be imposed on the Vessel any lien whatsoever.”

      

      

      
        
          	17.	
                  Indemnity - See also Additional Clause 61 (Further
                          indemnities).

                

        

      

      (a)     The Charterers shall indemnify the Owners against any loss, damage or expense (including, without limitation, legal expense) incurred by the Owners arising out of or in relation to a
              breach of this charter and/or the operation of the Vessel by the Charterers, and against any lien of whatsoever nature arising out of an event occurring during the Charter Period.  If the Vessel be arrested or otherwise detained by
          reason of claims or liens arising out of her operation hereunder by the Charterers, the Charterers shall at their own expense take all reasonable steps to

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      PART II

      “BARECON 2001” Standard Bareboat Charter

       

      

      secure that within a reasonable time the Vessel is released, including the provision of bail.

      Without prejudice to the generality of the foregoing, the Charterers agree to indemnify the Owners against all consequences
          or liabilities arising from the Master, officers or agents signing Bills of Lading or other documents.

      (b)     If the Vessel be arrested or otherwise detained by reason of a claim or claims against the Owners, the Owners shall
          at their own expense take all reasonable steps to secure that within a reasonable time the Vessel is released, including the provision of bail.

      In such circumstances the Owners shall indemnify the Charterers against any loss, damage or expense incurred by the
          Charterers (including hire paid under this Charter) as a direct consequence of such arrest or detention.

      
        
          	18.	
                  Lien

                

        

      

      The Owners to have a lien upon all
              cargoes, sub-hires and

              sub-freights belonging or due to the Charterers or any sub-charterers and any Bill of Lading freight for all claims under this Charter, and the Charterers to have a lien on the Vessel for all moneys paid in advance and not earned.

      
        
          	19.	
                  Salvage

                

        

      

      All salvage and towage performed by the Vessel shall be for the Charterers' benefit and the cost of repairing damage
          occasioned thereby shall be borne by the Charterers.

      
        
          	20.	
                  Wreck Removal

                

        

      

      In the event of the Vessel becoming a wreck or obstruction to navigation the Charterers shall indemnify the Owners against
          any sums whatsoever which the Owners shall become liable to pay and shall pay in consequence of the Vessel becoming a wreck or obstruction to navigation.

      
        
          	21.	
                  General Average

                

        

      

      The Owners shall not contribute to General Average.

      
        
          	22.	
                  Assignment, Sub-Charter and Sale – See Additional Clause
                          52 (Sub-chartering and assignment)

                

        

      

      (a)     The Charterers shall not assign this Charter nor sub-charter the Vessel on a bareboat basis except with the prior
          consent in writing of the Owners, which shall not be unreasonably withheld, and subject to such terms and conditions as the Owners shall approve.

      (b)     The Owners shall not sell the
              Vessel during the currency of this Charter. except with the prior written consent of the Charterers, which shall not be unreasonably withheld, and subject to the buyer accepting an assignment of this Charter.

      
        
          	23.	
                  Contracts of Carriage

                

        

      

      
        
          	*)	
                  (a)     The Charterers are to procure that all documents issued during the Charter Period evidencing the terms and conditions agreed in respect of carriage
                      of goods shall contain a paramount clause incorporating any legislation relating to carrier's liability for cargo compulsorily applicable in the trade; if no such legislation exists, the documents shall incorporate the Hague-Visby
                      Rules.  The documents shall also contain the New Jason Clause and the Both-to-Blame Collision Clause.

                

        

      

      
        
          	*)	
                  (b)     The Charterers are to procure that all passenger tickets issued
                          during the Charter Period for the carriage of passengers and their luggage under this Charter shall contain a paramount clause incorporating any legislation relating to carrier's liability for passengers and their luggage
                          compulsorily applicable in the trade; if no such legislation exists, the passenger tickets shall incorporate the Athens Convention Relating to the Carriage of Passengers and their Luggage by Sea, 1974, and any protocol thereto.

                

        

      

      
        
          	*)	
                  Delete as applicable.

                

        

      

      
        
          	24.	
                  Bank Guarantee

                

        

      

      (Optional, only to
              apply if Box 27 filled in)

      The Charterers undertake to furnish, before delivery of the Vessel, a corporate guarantees from Flex LNG Ltd. and a corporate guarantee from Flex LNG Fleet Limited first class bank
              guarantee or bond in the sum and at the place as indicated in Box 27 as guarantee, for full performance of their obligations under
          this Charter.

      
        
          	25.	
                  Requisition/Acquisition

                

        

      

      (a)     In the event of the Requisition for Hire of the Vessel by any governmental or other competent authority
          (hereinafter referred to as "Requisition for Hire") irrespective of the date during the Charter Period when "Requisition for Hire" may occur and irrespective of the length thereof and whether or not it be for an indefinite or a limited period of
          time, and irrespective of whether it may or will remain in force for the remainder of the Charter Period, this Charter shall not be deemed
          thereby or thereupon to be frustrated or otherwise terminated and the Charterers shall continue to pay the stipulated hire in the manner provided by this Charter until the time when the Charter would have terminated pursuant to any of the
          provisions hereof always provided however that in the event of "Requisition for Hire" any Requisition Hire or compensation received or receivable by the Owners shall be payable to the Charterers during the remainder of the Charter Period or the
          period of the "Requisition for Hire" whichever be the shorter.

      (b) In the event of the Owners being
              deprived of their ownership in the Vessel by any Compulsory Acquisition of the Vessel or requisition for title by any governmental or other competent authority (hereinafter referred to as "Compulsory Acquisition"), then, irrespective of the
              date during the Charter Period when "Compulsory Acquisition" may occur, this Charter shall be deemed terminated as of the date of such "Compulsory Acquisition".  In such event Charter Hire to be considered as earned and to be paid up to the
              date and time of such "Compulsory Acquisition".

      
        
          	26.	
                  War

                

        

      

      (a)     For the
          purpose of this Clause, the words "War Risks" shall include any war (whether actual or threatened), act of war, civil war, hostilities, revolution, rebellion, civil commotion, warlike operations, the laying of mines (whether actual or reported),
          acts of piracy, acts of terrorists, acts of hostility or malicious damage, blockades (whether imposed against all vessels or imposed selectively against vessels of certain flags or ownership, or against certain cargoes or crews or otherwise
          howsoever), by any person, body, terrorist or political group, or the Government of any state whatsoever, which may be dangerous or are likely to be or to become dangerous to the Vessel, her cargo, crew or other persons on board the Vessel.

      (b)     The Vessel,
          unless the written consent of the Owners be first obtained, shall not continue to or go through any port, place, area or zone (whether of land or sea), or any waterway or canal, where it reasonably appears that the Vessel, her cargo, crew or
          other persons on board the Vessel, in the reasonable judgement of the Owners, may be, or are likely to be, exposed to War Risks.  Should the Vessel be within any such place as aforesaid, which only becomes dangerous, or is likely to be or to
          become dangerous, after her entry into it, the Owners shall have the right to require the Vessel to leave such area.

      (c)     The Vessel shall not load contraband cargo, or to pass through any blockade, whether such blockade be imposed on
          all vessels, or is imposed selectively in any way whatsoever against vessels of certain flags or ownership, or against certain cargoes or crews or

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      

      

      
        
          

      

      PART II

      “BARECON 2001” Standard Bareboat Charter

      otherwise howsoever, or to proceed to an area where she shall be subject, or is likely to be subject to a belligerent's
          right of search and/or confiscation.

      (d)    If the insurers of the war risks insurance, when Clause 14 is applicable, should require payment of premiums and/or calls because, pursuant to the Charterers' orders, the Vessel is within, or is due to enter and remain within, any area or areas which are specified
          by such insurers as being subject to additional premiums because of War Risks, then such premiums and/or calls shall be reimbursed by the Charterers to the Owners at the same time as the next payment of hire is due.

      
        
          	

                	(e)	
                  The Charterers shall have the liberty:

                

        

      

      
        
          	

                	(i)	
                  to comply with all orders, directions, recommendations or advice as to departure, arrival, routes, sailing in convoy, ports of call, stoppages,
                      destinations, discharge of cargo, delivery, or in any other way whatsoever, which are given by the Government of the Nation under whose flag the Vessel sails, or any other Government, body or group whatsoever acting with the power to
                      compel compliance with their orders or directions;

                

        

      

      
        
          	

                	(ii)	
                  to comply with the orders, directions or recommendations of any war risks underwriters who have the authority to give the same under the terms of the war
                      risks insurance;

                

        

      

      
        
          	

                	(iii)	
                  to comply with the terms of any resolution of the Security Council of the United Nations, any directives of the European Community, the effective orders of
                      any other Supranational body which has the right to issue and give the same, and with national laws aimed at enforcing the same to which the Owners are subject, and to obey the orders and directions of those who are charged with their
                      enforcement.

                

        

      

      (f)      In the event of outbreak of
              war (whether there be a declaration of war or not) (i) between any two or more of the following countries: the United States of America; Russia; the United Kingdom; France; and the People's Republic of China, (ii) between any two or more of
              the countries stated in Box 36,
              both the Owners and the Charterers shall have the right to cancel this Charter, whereupon the Charterers shall redeliver the Vessel to the Owners in accordance with Clause 15, if the Vessel has cargo on board after discharge thereof at destination, or if debarred under
              this Clause from reaching or entering it at a near, open and safe port as directed by the Owners, or if the Vessel has no cargo on board, at the port at which the Vessel then is or if at  sea at a near, open and safe port as directed by the Owners.  In all cases hire shall continue to be paid in accordance with Clause 11 and except as aforesaid all other provisions of this Charter shall apply until redelivery.

      
        
          	27.	
                  Commission

                

        

      

      The Owners to pay a commission at the
              rate indicated in Box 33 to the Brokers named in
            Box 33 on any hire paid under the Charter.  If no
              rate is indicated in Box 33, the
              commission to be paid by the Owners shall cover the actual expenses of the Brokers and a reasonable fee for their work.

      If the full hire is not paid owing to
              breach of the Charter by either of the parties the party liable therefor shall indemnify the Brokers against their loss of commission.  Should the parties agree to cancel the Charter, the Owners shall indemnify the Brokers against any loss of
              commission but in such case the commission shall not exceed the brokerage on one year's hire.

      
        
          	28.	
                  Termination – See Additional Clause 61 (Termination Events) and Additional Clause 57 (Total Loss)

                

        

      

      (a)      Charterers' Default

      The Owners shall be entitled to
              withdraw the Vessel from the service of the Charterers and terminate the Charter with immediate effect by written notice to the Charterers if:

      
        
          	

                	(i)	
                  the Charterers fail to pay hire in accordance with Clause 11.  However, where there is a failure to
                          make punctual payment of hire due to oversight, negligence, errors or omissions on the part of the Charterers or their bankers, the Owners shall give the Charterers written notice of the number of clear banking days stated in Box 34 (as recognised at the agreed place of
                          payment) in which to rectify the failure, and when so rectified within such number of days following the Owners' notice, the payment shall stand as regular and punctual.  Failure by the Charterers to pay hire within the number of
                          days stated in Box 34
                          of their receiving the Owners' notice as provided herein, shall entitle the Owners to withdraw the Vessel from the service of the Charterers and terminate the Charter without further notice;

                

        

      

      
        
          	

                	(ii)	
                  the Charterers fail to comply with the requirements of:

                      (1) Clause 6 (Trading Restrictions)

                        (2) Clause 13(a) (Insurance and Repairs)

                      provided that the Owners shall have the option, by written notice to the Charterers, to give the Charterers a specified number of days grace
                          within which to rectify the failure without prejudice to the Owners' right to withdraw and terminate under this Clause if the Charterers fail to comply with such notice;

                

        

      

      
        
          	

                	(iii)	
                  the Charterers fail to rectify any failure to comply with the
                          requirements of sub-clause 10(a)(i) (Maintenance and Repairs) as soon as practically possible after the Owners have requested them in writing so to do and in any event so that the Vessel's insurance cover is not prejudiced.

                

        

      

      (b)     Owners' Default

      If the Owners shall by any act or
              omission be in breach of their obligations under this Charter to the extent that the Charterers are deprived of the use of the Vessel and such breach continues for a period of fourteen (14) running days after written notice thereof has been
              given by the Charterers to the Owners, the Charterers shall be entitled to terminate this Charter with immediate effect by written notice to the Owners.

      (c)     Loss of Vessel

      This Charter shall be deemed to be
              terminated if the Vessel becomes a total loss or is declared as a constructive or compromised or arranged total loss.  For the purpose of this sub-clause, the Vessel shall not be deemed to be lost unless she has either become an actual total
              loss or agreement has been reached with her underwriters in respect of her constructive, compromised or arranged total loss or if such agreement with her underwriters is not reached it is adjudged by a competent tribunal that a constructive
              loss of the Vessel has occurred.

      (d)     Either party shall be entitled
              to terminate this Charter with immediate effect by written notice to the other party in the event of an order being made or resolution passed for the winding up, dissolution, liquidation or bankruptcy of the other party (otherwise than for
              the purpose of reconstruction or amalgamation) or if a receiver is appointed, or if it suspends payment, ceases to carry on business or makes any special arrangement or composition with its creditors.

      (e)     The termination of this
              Charter shall be without prejudice to all rights accrued due between the parties prior to the date of termination and to any claim that either party might have.

      
        
          	29.	
                  Repossession

                

        

      

      In the event of the termination of
              this Charter in accordance with the applicable provisions of Clause 28, the Owners shall have the right to repossess the Vessel from the Charterers at her current or next port of call, or at a port or place convenient to them without hindrance

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      PART II

      “BARECON 2001” Standard Bareboat Charter

      or interference by the Charterers,
              courts or local authorities.  Pending physical repossession of the Vessel in accordance with this Clauses 29, the Charterers shall hold the Vessel as gratuitous bailee only to the Owners.  The Owners shall arrange for an authorised representative to board the Vessel as
              soon as reasonably practicable following the termination of the Charter.  The Vessel shall be deemed to be repossessed by the Owners from the Charterers upon the boarding of the Vessel by the Owners' representative.  All arrangements and
              expenses relating to the settling of wages, disembarkation and repatriation of the Charterers' Master, officers and crew shall be the sole responsibility of the Charterers.

      
        
          	30.	
                  Dispute Resolution – See Additional Clause 77 (Law and
                          jurisdiction)

                

        

      

      
        
          	*)	
                  (a)     This Contract shall be governed by and construed in accordance
                          with English law and any dispute arising out of or in connection with this Contract shall be referred to arbitration in London in accordance with the Arbitration Act or any statutory modification or re-enactment thereof save to
                          the extent necessary to give effect to the provisions of this Clause.

                

        

      

      The arbitration shall be conducted in
              accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced.

      The reference shall be to three
              arbitrators.  A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within 14 calendar days of
              that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the 14 days specified.  If the other party does not appoint its own
              arbitrator and give notice that it has done so within the 14 days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator
              and shall advise the other party accordingly.  The award of a sole arbitrator shall be binding on both parties as if he had been appointed by agreement.

      Nothing herein shall prevent the
              parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator.

      In cases where neither the claim nor
              any counterclaim exceeds the sum of US$50,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are
              commenced.

      
        
          	*)	
                  (b)     This Contract shall be governed by and construed in accordance
                          with Title 9 of the United States Code and the Maritime Law of the United States and any dispute arising out of or in connection with this Contract shall be referred to three persons at New York, one to be appointed by each of the
                          parties hereto, and the third by the two so chosen; their decision or that of any two of them shall be final, and for the purposes of enforcing any award, judgement may be entered on an award by any court of competent
                          jurisdiction.  The proceedings shall be conducted in accordance with the rules of the Society of Maritime Arbitrators, Inc.

                

        

      

      In cases where neither the claim nor
              any counterclaim exceeds the sum of US550,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the Shortened Arbitration Procedure of the Society of Maritime Arbitrators, Inc. current at the
              time when the arbitration proceedings are commenced.

      
        
          	*)	
                  (c)     This Contract shall be governed by and construed in accordance
                          with the laws of the place mutually agreed by the parties and any dispute arising out of or in connection with this Contract shall be referred to arbitration at a mutually agreed place, subject to the procedures applicable there.

                

        

      

      (d)     Notwithstanding (a), (b) or
              (c) above, the parties may agree at any time to refer to mediation any difference and/or dispute arising out of or in connection with this Contract.

      In the case of a dispute in respect of
              which arbitration has been commenced under (a), (b) or (c) above, the following shall apply:-

      
        
          	

                	(i)	
                  Either party may at any time and from time to time elect to refer the
                          dispute or part of the dispute to mediation by service on the other party of a written notice (the "Mediation Notice') calling on the other party to agree to mediation.

                

        

      

      
        
          	

                	(ii)	
                  The other party shall thereupon within 14 calendar days of receipt of
                          the Mediation Notice confirm that they agree to mediation, in which case the parties shall thereafter agree a mediator within a further 14 calendar days, failing which on the application of either party a mediator will be
                          appointed promptly by the Arbitration Tribunal ("the Tribunal") or such person as the Tribunal may designate for that purpose.  The mediation shall be conducted in such place and in accordance with such procedure and on such terms
                          as the parties may agree or, in the event of disagreement, as may be set by the mediator.

                

        

      

      
        
          	

                	(iii)	
                  If the other party does not agree to mediate, that fact may be brought
                          to the attention of the Tribunal and may be taken into account by the Tribunal when allocating the costs of the arbitration as between the parties.

                

        

      

      
        
          	

                	(iv)	
                  The mediation shall not affect the right of either party to seek such
                          relief or take such steps as it considers necessary to protect its interest.

                

        

      

      
        
          	

                	(v)	
                  Either party may advise the Tribunal that they have agreed to
                          mediation.  The arbitration procedure shall continue during the conduct of the mediation but the Tribunal may take the mediation timetable into account when setting the timetable for steps in the arbitration.

                

        

      

      
        
          	

                	(vi)	
                  Unless otherwise agreed or specified in the mediation terms, each party
                          shall bear its own costs incurred in the mediation and the parties shall share equally the mediator's costs and expenses.

                

        

      

      
        
          	

                	(vii)	
                  The mediation process shall be without prejudice and confidential and
                          no information or documents disclosed during it shall be revealed to the Tribunal except to the extent that they are disclosable under the law and procedure governing the arbitration.

                

        

      

      (Note: The parties
              should be aware that the mediation process may not necessarily interrupt time limits.)

      (e)    If Box 35 in Part I is not appropriately
              filled in, sub-clause 30(a) of this Clause shall apply.  Sub-clause 30(d) shall apply in all cases.

      *)     Sub-clauses 30(a), 30(b) and 30(c) are alternatives;

      indicate
              alternative agreed in Box 35.

      
        
          	31.	
                  Notices -- See Additional Clause 71

                

        

      

      (a)     Any notice to be given by
              either party to the other party shall be in writing and may be sent by fax, telex, registered or recorded mail or by personal service.

      (b)     The address of the Parties for
              service of such communication shall be as stated in Boxes 3 and 4 respectively.

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      “BARECON 2001” Standard Bareboat Charter

      	 	 	
              OPTIONAL

                  PART

            

      PART
            III

          PROVISIONS TO APPLY FOR NEWBUILDING VESSELS ONLY

          (Optional, only to apply if expressly agreed and stated in Box 37)

      
        
          	1.	
                  Specifications and Building Contract

                

        

      

      (a)     The Vessel shall be
              constructed in accordance with the Building Contract (hereafter called the Building Contract") as annexed to this Charter, made between the Builders and the Owners and in accordance with the specifications and plans annexed thereto, such
              Building Contract, specifications and plans having been counter- signed as approved by the Charterers.

      (b)     No change shall be made in the
              Building Contract or in the specifications or plans of the Vessel as approved by the Charterers as aforesaid, without the Charterers' consent.

      (c)     The Charterers shall have the
              right to send their representative to the Builders' Yard to inspect the Vessel during the course of her construction to satisfy themselves that construction is in accordance with such approved specifications and plans as referred to under
              sub-clause (a) of this Clause.

      (d)     The Vessel shall be built in
              accordance with the Building Contract and shall be of the description set out therein.  Subject to the provisions of sub-clause 2(c)(ii) hereunder, the Charterers shall be bound to accept the Vessel from the Owners, completed and constructed
              in accordance with the Building Contract, on the date of delivery by the Builders.  The Charterers undertake that having accepted the Vessel they will not thereafter raise any claims against the Owners in respect of the Vessel's performance
              or specification or defects, if any.  Nevertheless, in respect of any repairs, replacements or defects which appear within the first 12 months from delivery by the Builders, the Owners shall endeavour to compel the Builders to repair, replace
              or remedy any defects or to recover from the Builders any expenditure incurred in carrying out such repairs, replacements or remedies.  However, the Owners' liability to the Charterers shall be limited to the extent the Owners have a valid
              claim against the Builders under the guarantee clause of the Building Contract (a copy whereof has been supplied to the Charterers).  The Charterers shall be bound to accept such sums as the Owners are reasonably able to recover under this
              Clause and shall make no further claim on the Owners for the difference between the amount(s) so recovered and the actual expenditure on repairs, replacement or remedying defects or for any loss of time incurred.  Any liquidated damages for
              physical defects or deficiencies shall accrue to the account of the party stated in Box 41(a) or if not filled in shall be shared equally between the parties.  The costs of pursuing a claim or claims against the Builders under this Clause (including any liability to the Builders) shall
              be borne by the party stated in Box 41(b) or if
              not filled in shall be shared equally between the parties.

      
        
          	2.	
                  Time and Place of Delivery

                

        

      

      (a)     Subject to the Vessel having
              completed her acceptance trials including trials of cargo equipment in accordance with the Building Contract and specifications to the satisfaction of the Charterers, the Owners shall give and the Charterers shall take delivery of the Vessel
              afloat when ready for delivery and properly documented at the Builders' Yard or some other safe and readily accessible dock, wharf or place as may be agreed between the parties hereto and the Builders.  Under the Building Contract the
              Builders have estimated that the Vessel will be ready for delivery to the Owners as therein provided but the delivery date for the purpose of this Charter shall be the date when the Vessel is in fact ready for delivery by the Builders after
              completion of trials whether that be before or after as indicated in the Building Contract.  The Charterers shall not be entitled to refuse acceptance of delivery of the Vessel and upon and after such acceptance, subject to Clause 1(d), the
              Charterers shall not be entitled to make any claim against the Owners in respect of any conditions, representations or warranties, whether express or implied, as to the seaworthiness of the Vessel or in respect of delay in delivery.

      (b)     If for any reason other than a
              default by the Owners under the Building Contract, the Builders become entitled under that Contract not to deliver the Vessel to the Owners, the Owners shall upon giving to the Charterers written notice of Builders becoming so entitled, be
              excused from giving delivery of the Vessel to the Charterers and upon receipt of such notice by the Charterers this Charter shall cease to have effect.

      (c)     If for any reason the Owners become
              entitled under the Building Contract to reject the Vessel the Owners shall, before exercising such right of rejection, consult the Charterers and thereupon

      (i) if the Charterers do not wish to
              take delivery of the Vessel they shall inform the Owners within seven (7) running days by notice in writing and upon receipt by the Owners of such notice this Charter shall cease to have effect; or

      (ii) if the Charterers wish to take
              delivery of the Vessel

      they may by notice in writing within
              seven (7) running days require the Owners to negotiate with the Builders as to the terms on which delivery should be taken and/or refrain from exercising their right to rejection and upon receipt of such notice the Owners shall commence such
              negotiations and/ or take delivery of the Vessel from the Builders and deliver her to the Charterers;

      (iii) in no circumstances shall the
              Charterers be entitled to reject the Vessel unless the Owners are able to reject the Vessel from the Builders;

      (iv) if this Charter terminates under
              sub-clause (b) or (c) of this Clause, the Owners shall thereafter not be liable to the Charterers for any claim under or arising out of this Charter or its termination.

      (d)     Any liquidated damages for delay in
              delivery under the Building Contract and any costs incurred in pursuing a claim therefor shall accrue to the account of the party stated in Box
              41(c) or if not filled in shall be shared equally between the parties.

      
        
          	3.	
                  Guarantee Works

                

        

      

      If not otherwise agreed, the Owners
              authorise the Charterers to arrange for the guarantee works to be performed in accordance with the building contract terms, and hire to continue during the period of guarantee works.  The Charterers have to advise the Owners about the
              performance to the extent the Owners may request.

      
        
          	4.	
                  Name of Vessel

                

        

      

      The name of the Vessel shall be
              mutually agreed between the Owners and the Charterers and the Vessel shall be painted in the colours, display the funnel insignia and fly the house flag as required by the Charterers.

      
        
          	5.	
                  Survey on Redelivery

                

        

      

      The Owners and the Charterers shall
              appoint surveyors  for the purpose of determining and agreeing in writing the condition of the Vessel at the time of re-delivery Without prejudice to Clause 15 (Part II), the Charterers shall bear all survey expenses and all other costs, if any, including the cost of
              docking and undocking, if required, as well as all repair costs incurred.  The Charterers shall also bear all loss of time spent in connection with any docking and undocking as well as repairs, which shall be paid at the rate of hire per day
              or pro rata.

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      “BARECON 2001” Standard Bareboat Charter

      	 	 	
              OPTIONAL

                  PART

            

      PART
            IV

          HIRE/PURCHASE AGREEMENT

          (Optional, only to apply if expressly agreed and stated in Box 42)

      On expiration of this Charter and
              provided the Charterers have

              fulfilled their obligations according to Part I and II as well as Part III, if applicable, it is agreed, that on payment of the final payment of hire as per Clause 11 the Charterers have purchased the Vessel with everything belonging to her and the Vessel is fully
              paid  for.

      

      

      In the following
              paragraphs the Owners are referred to as the Sellers and the Charterers as the Buyers.

      

      

      The Vessel shall be delivered by the
              Sellers and taken over by the Buyers on expiration of the Charter.

      

      

      The Sellers guarantee that the Vessel,
              at the time of delivery, is tree from all encumbrances and maritime liens or any debts whatsoever other than those arising from anything done or not done by the Buyers or any existing mortgage agreed not to be paid off by the time of
              delivery.  Should any claims, which have been incurred prior to the time of delivery be made against the Vessel, the Sellers hereby undertake to indemnify the Buyers against all consequences of such claims to the extent it can be proved that
              the Sellers are responsible for such claims.  Any taxes, notarial, consular and other charges and expenses connected with the purchase and registration under Buyers' flag, shall be for Buyers' account.  Any taxes, consular and other charges
              and expenses connected with closing of the Sellers' register, shall be for Sellers' account.

      

      

      In exchange for payment of the last
              month's hire instalment the Sellers shall furnish the Buyers with a Bill of Sale duly attested and legalized, together with a certificate setting out the registered encumbrances, if any.  On delivery of the Vessel the Sellers shall provide
              for deletion of the Vessel from the Ship's Register and deliver a certificate of deletion to the Buyers.  The Sellers shall, at the time of delivery, hand to the Buyers all classification certificates (for hull, engines, anchors, chains,
              etc.), as well as all plans which may be in Sellers' possession.

      

      

      The Wireless Installation and Nautical
              Instruments, unless on hire, shall be included in the sale without any extra payment.

      

      

      The Vessel with everything belonging
              to her shall be at Sellers' risk and expense until she is delivered to the Buyers, subject to the conditions of this Contract and the Vessel with everything belonging to her shall be delivered and taken over as she is at the time of delivery,
              after which the Sellers shall have no responsibility for possible faults or deficiencies of any description.

      

      

      The Buyers undertake to pay for the
              repatriation of the Master, officers and other personnel if appointed by the Sellers to the port where the Vessel entered the Bareboat Charter as per Clause 3 (Part II) or to pay the equivalent cost for their journey to any other place.

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

      
        
          

      

      “BARECON 2001” Standard Bareboat Charter

      	 	 	
              OPTIONAL

                  PART

            

      PART V

          PROVISIONS TO APPLY FOR VESSELS REGISTERED IN BAREBOAT CHARTER REGISTRY

          (Optional, only to apply if expressly agreed and stated in Box 43)

      

      

      
        
          	1.	
                  Definitions

                

        

      

      For the purpose of this PART V, the
              following terms shall have the meanings hereby assigned to them: "The Bareboat Charter Registry" shall mean the registry of the State whose flag the Vessel will fly and in which the Charterers are registered as the bareboat charterers during the period of the Bareboat Charter.

      “The Underlying Registry" shall mean the registry of the State
              in which the Owners of the Vessel are registered as Owners and to which jurisdiction and control of the Vessel will revert upon termination of the Bareboat Charter Registration.

      
        
          	2.	
                  Mortgage

                

        

      

      The Vessel chartered under this
              Charter is financed by a mortgage and the provisions of Clause 12(b) (Part II) shall apply.

      
        
          	3.	
                  Termination of Charter by Default

                

        

      

      If the Vessel chartered under this
              Charter is registered in a Bareboat Charter Registry as stated in Box 44, and if the Owners shall default in the payment of any amounts due under the mortgage(s) specified in Box 28, the Charterers shall, if so required by the mortgagee, direct the Owners to re-register the Vessel in the Underlying Registry as shown in Box 45.

      In the event of the Vessel being
              deleted from the Bareboat Charter Registry as stated in Box 44, due to a default by the Owners in the payment of any amounts due under the mortgage(s), the Charterers shall have the right to terminate this Charter forthwith and without prejudice to any other claim they may have against the
              Owners under this Charter.

      

      

      

      

      

      

      This document is computer generate BARECON 2001 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly
          visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense
          as a result of discrepancies between the original BIMCO approved document and this computer generated document.

    

    
      
        

    

    
      
      
        ADDITIONAL CLAUSES

        TO BAREBOAT
                CHARTER FOR

        “FLEX RAINBOW”

        (IMO NO. 9709037)

        CONTENT

        	
                32.

              	
                Definitions

              	
                3

              
	
                33.

              	
                Interpretations

              	
                17

              
	
                34.

              	
                Background

              	
                18

              
	
                35.

              	
                Pre-delivery and delivery

              	
                19

              
	
                36.

              	
                Construction and supervision

              	
                21

              
	
                37.

              	
                Conditions precedent

              	
                22

              
	
                38.

              	
                Bunkers and luboils

              	
                25

              
	
                39.

              	
                Further maintenance and operation

              	
                26

              
	
                40.

              	
                Structural changes and alterations

              	
                27

              
	
                41.

              	
                Hire

              	
                28

              
	
                42.

              	
                Insurance

              	
                33

              
	
                43.

              	
                Redelivery

              	
                38

              
	
                44.

              	
                Redelivery conditions

              	
                39

              
	
                45.

              	
                Diver's inspection at redelivery

              	
                40

              
	
                46.

              	
                Owners' mortgage

              	
                41

              
	
                47.

              	
                Transport documents

              	
                43

              
	
                48.

              	
                Charterers' representations and warranties

              	
                43

              
	
                49.

              	
                Charterers' undertakings

              	
                47

              
	
                50.

              	
                Earnings Account

              	
                56

              
	
                51.

              	
                Termination Events

              	
                56

              
	
                52.

              	
                Sub-chartering and assignment

              	
                62

              
	
                53.

              	
                Name of Vessel

              	
                63

              
	
                54.

              	
                Charter Period

              	
                63

              
	
                55.

              	
                Purchase Option and transfer of title

              	
                63

              
	
                56.

              	
                Sale of Vessel by the Owners

              	
                64

              
	
                57.

              	
                Total Loss

              	
                64

              
	
                58.

              	
                Fees and expenses

              	
                65

              
	
                59.

              	
                Stamp duties and taxes

              	
                66

              
	
                60.

              	
                Operational notifiable events

              	
                66

              

        

        

        	
                61.

              	
                Further indemnities

              	
                66

              
	
                62.

              	
                Set-off

              	
                68

              
	
                63.

              	
                Further assurances and undertakings

              	
                69

              
	
                64.

              	
                Cumulative rights

              	
                69

              
	
                65.

              	
                Day count convention

              	
                69

              
	
                66.

              	
                No waiver

              	
                69

              
	
                67.

              	
                Entire agreement

              	
                69

              
	
                68.

              	
                Invalidity

              	
                69

              
	
                69.

              	
                English language

              	
                70

              
	
                70.

              	
                No partnership

              	
                70

              
	
                71.

              	
                Notices

              	
                70

              
	
                72.

              	
                Conflicts

              	
                71

              
	
                73.

              	
                Survival of Charterers' obligations

              	
                71

              
	
                74.

              	
                Counterparts

              	
                71

              
	
                75.

              	
                Confidentiality

              	
                71

              
	
                76.

              	
                Third Parties Act

              	
                72

              
	
                77.

              	
                Law and jurisdiction

              	
                72

              
	
                78.

              	
                Conditions subsequent

              	
                73

              
	
                79.

              	
                FATCA

              	
                73

              

        	
                SCHEDULE 1 FORM OF PROTOCOL OF DELIVERY AND ACCEPTANCE

              	
                77

              
	
                SCHEDULE 2 FORM OF TITLE TRANSFER PROTOCOL OF DELIVERY AND ACCEPTANCE

              	
                78

              
	
                SCHEDULE 3 HIRE PAYMENT SCHEDULE

              	
                79

              
	
                SCHEDULE 4 SCHEDULE OF PURCHASE OPTION PRICE

              	
                80

              

        
          2

          
            

        

        

        

        32.    Definitions

        In this Charter:

        “Account

              Bank” means DNB Bank ASA (or such other bank or financial institution in Norway as selected or designated by the Owners from time to time).

        “Account

              Charge” means the account security agreement in respect of the Earnings Account and all amounts from time to time standing to the credit to the Earnings Account from the Charterers in favour of the Owners.

        “Actual

              Owners’ Costs” means the Purchase Price (as defined in the MOA) less the Advance Hire settled in accordance with Clause 41(a)(i).

        “Advance

              Hire” means the amounts payable pursuant to Clause 41(a)(i) (Hire).

        “Affiliate”
            means, in relation to any entity, a Subsidiary of that entity, a Holding Company of that entity or any other Subsidiary of that Holding Company.

        “Agreement

              Term” means the period commencing on the date of this Charter and terminating on the expiration of the Charter Period or such earlier or later date on which all money of any nature owed by the Obligors to the Owners under the
            Transaction Documents or otherwise in connection with the Vessel have been paid in full to the Owners and no obligations of the Obligors of any nature to the Owners or otherwise in connection with the Transaction Documents or with the Vessel
            remain unperformed or undischarged.

        “Applicable

              Rate” in respect of an Applicable Rate Period, the LIBOR notified by the Owners on the relevant Applicable Rate Determination Date to be (which is expressed as a percentage rate per annum) the rate which applies to all Unpaid Sums
            (including any Hire) for that Applicable Rate Period.

        “Applicable

              Rate Determination Date” means, in respect of an Applicable Rate Period, the day falling ten (10) Business Days before the first day of that Applicable Rate Period.

        “Applicable

              Rate Period” means each period comprising of one (1) Hire Period, with the first Applicable Rate Period commencing on the first Hire Payment Date.

        “Approved

              Broker” means each of Arrow Sale & Purchase (UK) Limited, Braemar ACM Shipbroking, Clarkson Platou, Maersk Broker A/S, Fearnleys, Lorentzen & Stemoco, Grieg Shipbrokers, Vessels Value and any other reputable and independent
            ship brokers acceptable to the Owners and appointed by the Charterers.

        “Approved

              Manager” means Bernhard Schulte Shipmanagement (Isle of Man) Limited in respect of technical management of the Vessel and FLEX LNG Management Ltd. in respect of commercial management of the Vessel or any other management company
            reasonably acceptable to the Owners and appointed by the Charterers.

        “Assumed

              Owners’ Cost” means US Dollars one hundred fifty seven million and five hundred thousand (US$157,500,000).

        “Authorisation”
            means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

        
          3

          
            

        

        

        

        “Break

              Costs” means all costs, losses, premiums or penalties (excluding the Margin) incurred by the Owners as a result of the receipt by the Owners of any payment under or in relation to the Transaction Documents on a day other than the due
            date for payment of the sum in question.

        “Builders”
            means Samsung Heavy Industry Co., Ltd., a company incorporated and existing under the laws of the Republic of Korea, having its registered office at 1321-15, Seocho- Dong, Seocho-Gu, Seoul, South Korea 137-857.

        “Building

              Contract” means the shipbuilding contract in respect of the Vessel dated 31 August 2013 made between the Builders and the Original Buyers, as amended, modified and supplemented from time to time.

        “Business

              Day” means a day (other than a Saturday or Sunday) on which banks and financial markets are open for business in Shanghai, Oslo and New York and on a day when LIBOR is calculated, London.

        “Cancellation

              Date” means the “Cancelling Date” as set out in the MOA (for the avoidance of doubt, as the same may be extended from time to time).

        “Change

              of Control” means the occurrence of any of the following events:

        
          
            	

                  	(a)	
                    Charter Guarantor 1 ceases to own, directly or indirectly, at least 70 per cent of the shares in the Charterers; and

                  

          

        

        
          
            	

                  	(b)	
                    John Fredriksen Family through Geveran Trading Co. Ltd. ceases to directly own at least 25% of the shares and voting rights of Charter Guarantor 1.

                  

          

        

        “Charter

              Group” means the Charterers, the Charter Guarantor and all its Subsidiaries from time to time, and a “member of the Charter Group”
            means any one of them.

        “Charter

              Guarantee 1” means the guarantee made or to be made by the Charter Guarantor 1 in favour of the Owners in respect of the Charterers’ obligations under this Charter.

        “Charter

              Guarantee 2” means the guarantee made or to be made by the Charter Guarantor 2 in favour of the Owners in respect of the Charterers’ obligations under this Charter.

        “Charter

              Guarantees” means Charter Guarantee 1 and Charter Guarantee 2, and “Charter Guarantee” means each or any of them.

        “Charter

              Guarantor 1” means Flex LNG Ltd., a company incorporated and existing under the laws of Bermuda, having its registered office at Par-La-Ville Place, 14 Par-La-Ville Road, Hamilton, Bermuda.

        “Charter

              Guarantor 2” means the Shareholder.

        “Charter

              Guarantors” means Charter Guarantor 1 and Charter Guarantor 2, and “Charter Guarantor” means each or any of them.

        “Charter

              Period” means, subject to Clauses 41 (Hire), 51 (Termination Events), 56 (Sale of the Vessel by the Owners) and 57 (Total Loss), the period of ten (10) years commencing from the Delivery Date.

        
          4

          
            

        

        

        

        “Charterers’

              Assignment” means the deed of assignment executed or to be executed (as the case may be) by the Charterers in favour of the Owners in relation to certain of the Charterers’ rights and interest in and to the (a) Earnings, (b)
            Insurances, (c) Requisition Compensation and (d) any Sub-Charter.

        “Classification

              Society” means the vessel classification society referred to in Box 10 (Classification Society) of this Charter, or DNV GL, Lloyd’s
            Register of Shipping (LR), Bureau Veritas (BV), ABS, Korean Register of Shipping (KR), China Classification Society (CCS) or such other reputable classification society which the Owners may approve from time to time.

        “Cost

              Balance” means at any relevant time during the Agreement Term, an amount equal to the Actual Owners’ Costs as may be reduced by the Fixed Hire pursuant to paragraph (a)(ii) of Clause 41 (Hire).

        “Debt”
            means the aggregate from time to time of all sums of any nature (together with all accrued unpaid interest on any of those sums) payable by the Charterers to the Owners under all or any of the Transaction Documents.

        “Default

              Termination” means a termination of the Charter Period pursuant to the provisions of Clause 51 (Termination Events).

        “Delivery

              Date” means the date of delivery of the Vessel by the Owners to the Charterers under this Charter.

        “Disruption

              Event” means either or both of:

        
          
            	

                  	(a)	
                    a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for
                        payments to be made in order for the transactions contemplated by the Transaction Documents to be carried out which disruption is not caused by, and is beyond the control of, any of the Parties; or

                  

          

        

        
          
            	

                  	(b)	
                    the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a
                        Party preventing that, or any other Party:

                  

          

        

        
          
            	

                  	(i)	
                    from performing its payment obligations under the Transaction Documents; or

                  

          

        

        
          
            	

                  	(ii)	
                    from communicating with other Parties in accordance with the terms of the Transaction Documents,

                  

          

        

        and which (in either such case) is not caused by, and is beyond the control
            of, the Party whose operations are disrupted.

        “Early

              Termination Amount” means, the aggregate of the following (which both Parties acknowledge as a genuine and reasonable pre-estimate of the Owners’ losses as a result of the early termination of this Charter after delivery of the Vessel
            to the Charterers under this Charter):

        
          
            	

                  	(a)	
                    the Cost Balance as at the relevant Termination Payment Date;

                  

          

        

        
          
            	

                  	(b)	
                    any Variable Hire which has accrued before the relevant Termination Payment Date and which remains unpaid at such Termination Payment Date and the
                        aggregate of the Variable Hire payable during the period commencing from the Termination

                  

          

        

        
          5

          
            

        

        

        

        Payment Date up to and including the date falling one hundred and twenty (120) months from the
            Delivery Date;

        
          
            	

                  	(c)	
                    any other Unpaid Sums due and payable;

                  

          

        

        
          
            	

                  	(d)	
                    any costs and expenses incurred by the Owners in locating, repossessing or recovering the Vessel, releasing any Security Interest created over the Vessel
                        or collecting any payments due under this Charter or in obtaining the due performance of the obligations of the Charterers under the Transaction Documents; and

                  

          

        

        together with any interest accrued thereon pursuant to paragraph (r) of
            Clause 41 (Hire) up to the date of receipt by the Owners, any applicable and documented break costs (excluding the margin) under the
            financing entered into by Owners limited to break costs (excluding the margin) for break of an interest period relevant to such financing.

        “Earnings”
            means all hires, freights, pool income and other sums payable to or for the account of the Charterers in respect of the Vessel including (without limitation) all remuneration for salvage and towage services, demurrage and detention moneys,
            contributions in general average, compensation in respect of any requisition for hire, and damages and other payments (whether awarded by any court or arbitral tribunal or by agreement or otherwise) for breach, termination or variation of any
            contract for the operation, employment or use of the Vessel.

        “Earnings

              Account” means the US Dollar account in the name of the Charterers opened or to be opened with the Account Bank, and includes any sub-account thereof and such account which is designated by the Owners as the earnings account for the
            purposes of this Charter.

        “Environmental

              Approvals” means any present or future permit, licence, approval, ruling, variance, exemption or other authorisation required under the applicable Environmental Law.

        “Environmental

              Claim” means any claim, proceeding or investigation by any person in respect of any Environmental Law.

        “Environmental

              Incident” means:

        
          
            	

                  	(a)	
                    any release, emission, spill or discharge from the Vessel or into or upon the air, sea, land or soils (including the seabed) or surface water of
                        Environmentally Sensitive Material within or from the Vessel; or

                  

          

        

        
          
            	

                  	(b)	
                    any incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged into or upon the air, sea, land or soils (including
                        the seabed) or surface water from a vessel other than the Vessel and which involves a collision between the Vessel and such other vessel or some other incident of navigation or operation, in either case, in connection with which the
                        Vessel is actually or potentially liable to be arrested, attached, detained or injuncted and/or the Vessel and/or any Obligor and/or any operator or manager of the Vessel is at fault or allegedly at fault or otherwise liable to any
                        legal or administrative action; or

                  

          

        

        
          
            	

                  	(c)	
                    any other incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged into or upon the air, sea, land or soils
                        (including the seabed) or surface water otherwise than from the Vessel and in connection with which the Vessel is actually or potentially liable to be arrested and/or where any Obligor and/or any operator or manager of the Vessel is
                        at fault or allegedly at fault or otherwise

                  

          

        

        
          6

          
            

        

        

        

        liable to any legal or administrative action, other than in accordance with an Environmental
            Approval.

        “Environmentally

              Sensitive Material” means (i) oil and oil products and (ii) any other waste, pollutant, contaminant or other substance (including any liquid, solid, gas, ion, living organism or noise) that may be harmful to human health or other life
            or the environment or a nuisance to any person or that may make the enjoyment, ownership or other territorial control of any affected land, property or waters more costly for such person to a material degree.

        “Environmental

              Law” means any applicable law and regulation in any jurisdiction in which any Obligor conducts business which relates to the pollution or protection of the environment or harm to or the protection of human health or the health of
            animals or plants.

        “Finance

              Document” means any facility agreement, security document and any other document designated as such by the Finance Parties and the Owners and which have been or may be (as the case may be) entered into between the Finance Parties and
            the Owners for the purpose of, among other things, financing or (as the case may be) refinancing all or any part of the Actual Owners’ Costs.

        “Finance

              Party” means any bank or financial institution which is or will be party to a Finance Document (other than the Owners and other entities which may have agreed or be intended as debtors and/or obligors thereunder) and “Finance Parties” means two or more of them.

        “Financial

              Indebtedness” means any obligation for the payment or repayment of money, whether present or future, actual or contingent, in respect of:

        
          
            	

                  	(a)	
                    moneys borrowed;

                  

          

        

        
          
            	

                  	(b)	
                    any acceptance credit;

                  

          

        

        
          
            	

                  	(c)	
                    any bond, note, debenture, loan stock or similar instrument;

                  

          

        

        
          
            	

                  	(d)	
                    any finance, capital lease or operating leases for financing purposes;

                  

          

        

        
          
            	

                  	(e)	
                    receivables sold or discounted (other than on a non-recourse basis);

                  

          

        

        
          
            	

                  	(f)	
                    deferred payments for assets or services;

                  

          

        

        
          
            	

                  	(g)	
                    any derivative transaction protecting against or benefiting from fluctuations in any rate or price (and, when calculating the value of any derivative
                        transaction, only the marked to market value shall be taken into account);

                  

          

        

        
          
            	

                  	(h)	
                    any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing according to
                        the relevant account principles;

                  

          

        

        
          
            	

                  	(i)	
                    any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a
                        bank or financial institution; and

                  

          

        

        
          
            	

                  	(j)	
                    the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in (a) to (i).

                  

          

        

        
          7

          
            

        

        

        

        “Fixed

              Hire” means in respect of each Hire Payment Date, the figure set out in the column ‘Fixed Hire’ in the Hire Payment Schedule against such Hire Payment Date, which may be revised, updated and replaced from time to time in accordance
            with the terms of this Charter.

        “GAAP”
            means generally accepted accounting principles in the United States of America.

        “Hire”
            means each or any combination or aggregate of (i) Fixed Hire and (ii) Variable Hire, as the context may require.

        “Hire

              Payment Date” means each 15th day of each relevant calendar month (or if such date is not a Business Day, the immediately preceding Business Day)
            during each and any Hire Period, save that:

        
          
            	

                  	(a)	
                    the first Hire Payment Date shall fall on the Delivery Date; and

                  

          

        

        
          
            	

                  	(b)	
                    the second Hire Payment Date shall fall on the date which is the 15th day

                        of the next relevant calendar month (or if such date is not a Business Day, the immediately preceding Business Day) after the calendar month during which the Delivery Date falls.

                  

          

        

        “Hire

              Payment Schedule” means the schedule set out in SCHEDULE 3.

        “Hire

              Period” means (i) in respect of any Hire Payment Date (other than the last Hire Payment Date), the period commencing on such Hire Payment Date and ending on the next succeeding Hire Payment Date; and (ii) in respect of the last Hire
            Payment Date, the period commencing on such Hire Payment Date and ending on the last day of the Charter Period.

        “Holding

              Company” means, in relation to any entity, any other entity in respect of which it is a Subsidiary.

        “IAPPC”
            means a valid international air pollution prevention certificate for the Vessel issued under Annex VI (Regulations for the Prevention of Air Pollution from Ships) to the International Convention for the Prevention of Pollution from Ships 1973
            (as modified in 1978 and 1997).

        “Indemnitee”
            has the meaning given to such term in Clause 61 (Further indemnities).“Innocent

        Owners’

              Interest Insurances” means all policies and contracts of innocent owners’ interest insurance from time to time taken out by the Owners in relation to the Vessel.

        “Insurances”
            means all policies and contracts of insurance which are from time to time taken out or entered into by the Charterers in respect of the Vessel or her Earnings or otherwise in connection with the Vessel or her Earnings.

        “Interpolated

              Screen Rate” means, in relation to the LIBOR for the Cost Balance or any part of it, the rate which results from interpolating on a linear basis between:

        
          
            	

                  	(a)	
                    the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than that relevant period; and

                  

          

        

        
          
            	

                  	(b)	
                    the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds that relevant period,

                  

          

        

        each at or about 11:00a.m. London time on the Quotation
            Day.

        
          8

          
            

        

        

        

        “Intra-group Loan Agreement” means the intra-group loan agreement executed or to be executed on
            or about the date of this Charter between the Charterers and the Shareholder, pursuant to which each of the Charterers and the Shareholder may make loan to the other party, and whose rights are, subject to the terms and conditions thereof,
            subordinated to the rights of the Owners under this Charter.

        “ISM

              Code” means the International Safety Management Code (including the guidelines on its implementation), adopted by the International Maritime Organisation Assembly as Resolutions A.741 (18) (as amended by MSC 104 (73)) and A.913(22)
            (superseding Resolution A.788 (19)), as the same may be amended, supplemented or superseded from time to time (and the terms “safety management system”, “Safety Management Certificate” and “Document of Compliance” have the same meanings as are
            given to them in the ISM Code).

        “ISM

              Company” means, at any given time, the company responsible for the Vessel’s compliance with the ISM Code under paragraph 1.1.2 of the ISM Code.

        “ISPS

              Code” means the International Ship and Port Facility Security Code adopted by the International Maritime Organisation (as the same may be amended, supplemented or superseded from time to time).

        “ISPS

              Company” means, at any given time, the company responsible for the Vessel’s compliance with the ISPS Code.

        “ISSC”
            means a valid international ship security certificate for the Vessel issued under the ISPS Code.

        “John

              Fredriksen Family” means Mr. John Fredriksen, his direct lineal descendants, the personal estate of any of them and/or any trust created for the benefit of any of the aforementioned persons and their estates.

        “LIBOR”
            means:

        
          
            	

                  	(a)	
                    the applicable Screen Rate as of the Specified Time for USD and for a period of three months for any Unpaid Sum (including any Hire); or

                  

          

        

        
          
            	

                  	(b)	
                    as otherwise determined in accordance with paragraph (r) of Clause 41 (Hire),

                  

          

        

        and if, in either case, that rate is less than zero,
            LIBOR will be deemed to be zero.

        “Major

              Casualty Amount” means US Dollars three Million (US$3,000,000) or the equivalent in any other currency or currencies.

        “Management

              Agreement” means, in relation to the Vessel, the technical and/or commercial ship management agreement and/or layup management agreement executed or to be executed (as the case may be) between the relevant Approved Manager and the
            Charterers.

        “Manager’s

              Undertaking” means the deed of undertaking executed or to be executed by the relevant Approved Manager in favour of the Owners.

        “Margin”
            means three point five per cent (3.50%) per annum.

        “Market

              Value” means, in relation to the Vessel, the value as determined in accordance with Clause 49(ee) (Valuation of Market Value).

        
          9

          
            

        

        

        

        “MARPOL”
            means the International Convention for the Prevention of Pollution from Ships adopted by the International Maritime Organisation (as the same may be amended, supplemented or superseded from time to time).

        “Material

              Adverse Effect” means a material adverse change in, or a material adverse effect on:

        
          
            	

                  	(a)	
                    the business, operations, property, condition (financial or otherwise) or prospects of the Charter Group taken as a whole;

                  

          

        

        
          
            	

                  	(b)	
                    the ability of any Obligor to perform and comply with their obligations under any Transaction Document or Project Document to which they are a party;

                  

          

        

        
          
            	

                  	(c)	
                    the validity, legality or enforceability of this Charter, any other Transaction Document or any Project Document; or

                  

          

        

        
          
            	

                  	(d)	
                    the effectiveness or ranking of any Security Interests granted pursuant to any of the Transaction Documents or the rights or remedies of the Charterers
                        under any of the Transaction Documents and any Project Document.

                  

          

        

        “MOA”
            has the meaning given to such term in Clause 34 (Background).

        “Mortgagees’

              Interest Insurances” means all policies and contracts of mortgagees’ interest insurance, mortgagees’ additional perils (oil pollution) insurance and any other insurance from time to time taken out by any Finance Party in relation to
            the Vessel.

        “Necessary

              Authorisations” means all Authorisations of any person including any government or other regulatory authority required by applicable law to enable it to:

        
          
            	

                  	(a)	
                    lawfully enter into and perform its obligations under the Transaction Documents and the Project Documents to which it is party;

                  

          

        

        
          
            	

                  	(b)	
                    ensure the legality, validity, enforceability or admissibility in evidence in England and, if different, its jurisdiction of incorporation, of such
                        Transaction Documents and Project Documents to which it is party; and

                  

          

        

        
          
            	

                  	(c)	
                    carry on its business from time to time.

                  

          

        

        “Obligor”
            means each of the Charterers, the Charter Guarantors and any person within the Charterer Group that may be party to a Transaction Document from time to time (other than the Owners and the Account Bank).

        “Original

              Buyers” means Flex LNGC 2 Limited, a company incorporated and existing under the laws of the Isle of Man, having its registered office at Analyst House, 20-26 Peel Road, Douglas, IM99 1AP, Isle of Man.

        “Owners’

              Cost Payment Date” means the date on which the Actual Owners’ Cost is paid by the Owners (as buyer) to the Charterers (as seller) in accordance with the terms of the MOA.

        “Party”
            means a party to this Charter.

        “PDA”
            means the protocol of delivery and acceptance in relation to the Vessel to be executed between the Owners and the Charterers, substantially in the form contained in Schedule 1 (Form of Protocol of Delivery and Acceptance) hereto.

        
          10

          
            

        

        

        

        “Permitted

              Security Interest” means:

        
          
            	

                  	(a)	
                    any Security Interest created or to be created in accordance with the Security Documents;

                  

          

        

        
          
            	

                  	(b)	
                    liens for unpaid master’s and crew’s wages in accordance with first class ship ownership and management practice;

                  

          

        

        
          
            	

                  	(c)	
                    liens for salvage;

                  

          

        

        
          
            	

                  	(d)	
                    liens for master’s disbursements incurred in the ordinary course of trading;

                  

          

        

        
          
            	

                  	(e)	
                    any other lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of the Vessel and not as a result
                        of any default or omission by the Charterers, provided such liens do not secure amounts more than twenty-one (21) days overdue (unless the overdue amount is being contested in good faith by appropriate steps);

                  

          

        

        
          
            	

                  	(f)	
                    any Security Interest arising by operation of law in respect of Taxes which are not overdue for payment or which are being contested in good faith by
                        appropriate steps and in respect of which appropriate reserves have been made;

                  

          

        

        
          
            	

                  	(g)	
                    any liens securing obligations incurred in the ordinary course of trading and/or operating the Vessel and not more than twenty-one (21) days overdue; and

                  

          

        

        
          
            	

                  	(h)	
                    any Security Interest which has the prior written approval of the Owners.

                  

          

        

        “Potential

              Termination Event” means an event or circumstance which, with the giving of any notice, the lapse of time, a determination of the Owners or any combination of the foregoing is a Termination Event.

        “Pre-Approved

              Flag” means the Marshall Islands or other flag at the Charterers’ option and approved by the Owners.

        “Project

              Documents” means the Building Contract, each Sub-Charter and the Management Agreement(s);

        “Purchase

              Option Price” means the amount due and payable by the Charterers to the Owners pursuant to Clause 55 (Purchase option and transfer of
              title), being the aggregate of:

        
          
            	

                  	(a)	
                    the Cost Balance as at the relevant Hire Payment Date (on which the Charterers or the Charterers’ nominee will purchase the Vessel pursuant to Clause
                        55(a)) plus any Variable Hire which has accrued before that Hire Payment Date and which remains unpaid at such Hire Payment Date (the estimated amount corresponding to the Hire Payment Date, based on the assumed LIBOR at 3.0% per
                        annum, is set out in Schedule 4 (Schedule of Purchase Option Price) to this Charter, but such amount will be adjusted, revised,
                        updated and replaced from time to time in accordance with the terms of this Charter and confirmed by the Owners, and agreed by the Charterers, by reference to, among others, the figure to be provided by the Owners upon fixing of the
                        delivery or closing date in accordance with such early purchase of the Vessel);

                  

          

        

        
          
            	

                  	(b)	
                    any interest accrued due and unpaid pursuant to paragraph (i) of Clause 41 (Hire);

                  

          

        

        
          11

          
            

        

        

        

        
          
            	

                  	(c)	
                    all Unpaid Sums due and payable together with (in each case where applicable) interest accrued thereon pursuant to paragraph (i) of Clause 41 (Hire) from the due date for payment thereof up to the date of actual payment; and

                  

          

        

        
          
            	

                  	(d)	
                    any Break Cost.

                  

          

        

        “Purchase

              Price” has the meaning given to such term under the MOA.

        “Quotation

              Day” means in relation to any period for which an Variable Hire or an interest rate is to be determined, the day falling ten (10) Business Days before the first day of that period.

        “Quiet

              Enjoyment Letter” means, in relation to the Vessel, a letter which the Finance Parties (or their authorised agent on their behalf) shall issue in favour of the Charterers, such letter to be in such form and substance as the Finance
            Parties may require.

        “Reference

              Banks” shall mean the principal London offices of Citibank N.A., HSBC Bank Plc., JP Morgan Chase Bank, N.A., or such other banks as the Owners may nominate in consultation with the Charterers.

        “Reference

              Bank Rate” means the arithmetic mean of the rates (rounded upwards to four (4) decimal places) as supplied to the Owners at their request by the Reference Banks:

        
          
            	

                  	(a)	
                    (other than where paragraph (b) below applies) as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in US
                        Dollars for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or

                  

          

        

        
          
            	

                  	(b)	
                    if different, as the rate (if any and applied to the relevant Reference Bank and the relevant period) which contributors to the Screen Rate are asked to
                        submit to the relevant administrator.

                  

          

        

        “Requisition

              Compensation” means all compensation or other money which may from time to time be payable to the Charterers as a result of the Vessel being requisitioned for title or in any other way compulsorily acquired (other than by way of
            requisition for hire).

        “Restricted

              Party” means a person or entity that is (i) listed on, any Sanctions List; (ii) located in, incorporated under the laws of, or owned or controlled by, or acting on behalf of, a person located in or organised ) the laws of a country or
            territory that is the target of country- wide or territory-wide Sanctions; or (iii) otherwise a target of Sanctions (“target of Sanctions” signifying a person with whom a United States person or other national of a Sanctions Authority would be
            prohibited or restricted by law from engaging in trade, business or other activities), or owned or controlled, or acting on behalf, at the discretion or for the benefit of a person referred to in (i) and/or (ii) above.

        “Sanctions”
            means any economic, trade or financial sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by any Sanctions Authority, to the extent applicable to any of the Obligors or any member of the Charter
            Group.

        “Sanctions

              Authority” means (i) the United States government; (ii) the United Nations; (iii) the European Union or its Member States, including, without limitation, the United Kingdom; (iv) the People’s Republic of China; or (v) the respective
            governmental institutions and agencies of any of the foregoing, including, without limitation, the Office of Foreign Assets

        
          12

          
            

        

        
          Control of the US Department of Treasury (“OFAC”), the United States Department of State and Her Majesty’s Treasury (“HMT”);

          “Sanctions List” means the “Specially Designated Nationals and Blocked Persons” list maintained by the OFAC, the Consolidated List of Financial Sanctions Targets and the Investment Ban List maintained by HMT, or any similar
              list maintained by, or public announcement of Sanctions designation made by, any of the Sanctions Authorities.

          “Screen Rate” means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for US Dollars for three (3)-month period
              displayed (before any correction, recalculation or republication by the administrator) on page LIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other
              information service which publishes that rate from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Owners may specify another page or service displaying the relevant rate.

          “Security Interest” means a mortgage, charge, assignment, pledge, lien, or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

          “Security Documents” means, in relation to the Vessel, the following:

          
            
              	

                    	(a)	
                      the Charter Guarantees;

                    

            

          

          
            
              	

                    	(b)	
                      the Charterers’ Assignment;

                    

            

          

          
            
              	

                    	(c)	
                      the Managers’ Undertaking;

                    

            

          

          
            
              	

                    	(d)	
                      the Account Charge;

                    

            

          

          
            
              	

                    	(e)	
                      the Shares Pledge;

                    

            

          

          
            
              	

                    	(f)	
                      any Sub-Charterers’ Assignment; and

                    

            

          

          
            
              	

                    	(g)	
                      any other document that may at any time be executed by any person creating, evidencing or perfecting any Security Interest to secure all or part of the
                          Obligors’ obligations under or in connection with the Transaction Documents,

                    

            

          

          and “Security Document” means any one of them.

          “Settlement Date” means, following a Total Loss of the Vessel, the earliest of:

          
            
              	

                    	(a)	
                      the date which falls 180 days after the date of occurrence of the Total Loss or, if such date is not a Business Day, the immediately preceding Business
                          Day; and

                    

            

          

          
            
              	

                    	(b)	
                      the date on which the Owners receive the Total Loss Proceeds in respect of the Total Loss.

                    

            

          

          “Shareholder” means Flex LNG Fleet Limited a company incorporated in Bermuda with registration number 52351 whose registered office is at Par la Ville Place, 4th Floor, 14 Par la Ville Road, Hamilton, HM08.

        

        

        

        

        
          13

          
            

        

        

        

        “Shares Pledge” means the deed of charge of shares of the Charterers, executed or to be executed by the Shareholder in favour
            of the Owners.

        “SMC”
            means a valid safety management certificate issued for the Vessel by or on behalf of the Administration under paragraph 13.7 of the ISM Code.

        “Specified

              Time” means:

        
          
            	

                  	(a)	
                    in connection with determining the Screen Rate, 11:00 a.m. (London time) on the Quotation Day; or

                  

          

        

        
          
            	

                  	(b)	
                    in connection with determining the Reference Bank Rate, noon (London time) on the Quotation Day.

                  

          

        

        “Sub-Charter”
            means any contract of affreightment, any demise charterparty, or any time or voyage charterparty of a duration of or exceeding twenty-four (24) months (whether by virtue of any optional extensions or otherwise) entered into between the
            Charterers as disponent owners and any Sub-Charterers for the chartering of the Vessel by the Charterers to the Sub- Charterers.

        “Sub-Charter

              Quiet Enjoyment Letter” means, in relation to the Vessel, any letter which (i) the Owners and/or (ii) the Finance Parties (or their authorised agent on their behalf) shall (subject to the terms of this Charter) issue in favour of the
            Sub-Charterers, such letter to be in such form and substance as the Owners, the Charterers, the Sub-Charterers and the Finance Parties may approve.

        “Sub-Charterers”
            means any person entering into a Sub-Charter with the Charterers for the chartering of the Vessel from the Charterers (as disponent owners) to such person (as charterer).

        “Sub-Charterers’

              Assignment” means the deed of assignment executed or to be executed (as the case may be) by any Sub-Charterers (which has entered into a demise charterparty in respect of the Vessel as permitted in accordance with Clause 52 (Sub-chartering and assignment) in favour of the Owners in relation to certain of the Sub-Charterers’ rights and interest in and to (amongst
            other things) the (a) Sub-Charterers’ Earnings, (b) Sub-Charterers’ Insurances and (c) Sub-Charterers’ Requisition Compensation.

        “Sub-Charterers’

              Earnings” means all hires, freights, pool income and other sums payable to or for the account of any Sub-Charterers in respect of the Vessel including (without limitation) all remuneration for salvage and towage services, demurrage and
            detention moneys, contributions in general average, compensation in respect of any requisition for hire, and damages and other payments (whether awarded by any court or arbitral tribunal or by agreement or otherwise) for breach, termination or
            variation of any contract for the operation, employment or use of the Vessel.

        “Sub-Charterers’

              Insurances” means all policies and contracts of insurance which are from time to time taken out or entered into by any Sub-Charterers in respect of the Vessel or her Sub-Charterers’ Earnings or otherwise in connection with the Vessel
            or her Sub-Charterers’ Earnings.

        “Sub-Charterers’

              Requisition Compensation” means all compensation or other money which may from time to time be payable to any Sub-Charterers as a result of the Vessel being

        
          14

          
            

        

        

        

        requisitioned for title or in any other way compulsorily acquired (other
            than by way of requisition for hire).

        “Subsidiary”
            is a subsidiary of another company if that other company:

        
          
            	

                  	i.	
                    holds a majority of the voting rights in it, or

                  

          

        

        
          
            	

                  	ii.	
                    is a member of it and has the right to appoint or remove a majority of its board of directors, or

                  

          

        

        
          
            	

                  	iii.	
                    is a member of it and controls alone, pursuant to an agreement with other members, a majority of the voting rights in it,

                  

          

        

        or if it is a subsidiary of a company that is itself a subsidiary of that
            other company.

        “Supervisor”
            means the person or persons who may be appointed by the Charterer from time to time to supervise the construction of the Vessel under the Building Contract.

        “Tax”
            or “tax” means any present and future tax (including, without limitation, value added tax, consumption tax or any other tax in respect of
            added value or any income), levy, impost, duty or other charge or withholding of any nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same); and “Taxes”, “taxes”, “Taxation” and “taxation” shall be construed accordingly.

        “Termination”
            means the termination at any time of the chartering of the Vessel under this Charter.

        “Termination

              Event” means each of the events specified in paragraph (a) of Clause 51 (Termination Events).

        “Termination

              Notice” has the meaning given to such term in paragraph (k) of Clause 41 (Hire) and paragraph (c) of Clause 51 (Termination Events).

        “Termination

              Payment Date” means:

        
          
            	

                  	(a)	
                    in respect of a termination of this Charter in accordance with paragraph (k) of Clause 41 (Hire), the date specified in the Termination Notice served on the Charterers pursuant to that Clause;

                  

          

        

        
          
            	

                  	(b)	
                    in respect of a Default Termination, the date specified in the Termination Notice served on the Charterers pursuant to paragraph (c) of Clause 51 (Termination Events) in respect of such Default Termination; or

                  

          

        

        
          
            	

                  	(c)	
                    in respect of a Total Loss Termination, the Settlement Date in respect of the Total Loss which gives rise to such Total Loss Termination.

                  

          

        

        “Third

              Parties Act” means the Contracts (Rights of Third Parties) Act 1999.

        
          15

          
            

        

        

        

        “Title

              Transfer PDA” means the protocol of delivery and acceptance in relation to the Vessel to be executed between the Owners and the Charterers, substantially in the form contained in Schedule 2 (Form of Title Transfer Protocol of Delivery and Acceptance) hereto.

        “Total

              Loss” means during the Charter Period:

        
          
            	

                  	(a)	
                    actual or constructive or compromised or agreed or arranged total loss of the Vessel;

                  

          

        

        
          
            	

                  	(b)	
                    the requisition for title or compulsory acquisition of the Vessel by any government or other competent authority (other than by way of requisition for
                        hire);

                  

          

        

        
          
            	

                  	(c)	
                    the capture, seizure, arrest, detention, hijacking, theft, condemnation as prize, confiscation or forfeiture of the Vessel (not falling within paragraph
                        (b) of this definition), unless the Vessel is released and returned to the possession of the Owners or the Charterers within ninety (90) days after the capture, seizure, arrest, detention, hijacking, theft, condemnation as prize,
                        confiscation or forfeiture in question,

                  

          

        

        and for the purpose of this Charter, (i) an actual Total Loss of the Vessel
            shall be deemed to have occurred at the date and time when the Vessel was lost but if the date of the loss is unknown the actual Total Loss shall be deemed to have occurred on the date on which the Vessel was last reported, (ii) a constructive
            Total Loss shall be deemed to have occurred at the date and time at which a notice of abandonment of the Vessel is given to the insurers of the Vessel and (iii) a compromised, agreed or arranged Total Loss shall be deemed to have occurred on
            the date of the relevant compromise, agreement or arrangement.

        “Total

              Loss Proceeds” means the proceeds of the Insurances or any other compensation of any description in respect of a Total Loss in respect of a Total Loss.

        “Total

              Loss Termination” means a termination of the Charter Period pursuant to the provisions of paragraph (a) of Clause 57 (Total Loss).

        “Transaction

              Documents” means, together, this Charter, the MOA, the Security Documents and such other documents as maybe agreed by the Parties from time to time.

        “Unpaid

              Sum” means any sum due and payable but unpaid by any Obligor under the Transaction Documents.

        “US

              Dollars”, “Dollars”, “USD”, “US$” and “$” each means available and
            freely transferable and convertible funds in lawful currency of the United States of America.

        “US

              Tax Obligor” means:

        
          
            	

                  	(a)	
                    an Obligor which is resident for tax purposes in the United States of America; or

                  

          

        

        
          
            	

                  	(b)	
                    an Obligor some or all of whose payments under the Transaction Documents to which it is a party are from sources within the United States for US federal
                        income tax purposes.

                  

          

        

        “Valuation

              Report” means, in relation to the Vessel, a valuation report of the Vessel addressed to the Owners and the Charterers from an Approved Broker.

        
          16

          
            

        

        

        

        “Variable

              Hire” means in respect of each Hire Payment Date, the figure set out in the column “Variable Hire” in the Hire Payment Schedule against such Hire Payment Date, which may be revised, updated and replaced from time to time in accordance
            with the terms of this Charter.

        “Vessel”
            means the 174,000M3 Liquefied Natural Gas carrier with IMO number 9709037 as more particularly described in Boxes 5 (Vessel’s name, call sign and
              flag) to 10 (Classification Society) of this Charter.

        33.     Interpretations

        
          
            	

                  	(a)	
                    In this Charter, unless the context otherwise requires, any reference to:

                  

          

        

        
          
            	

                  	(i)	
                    this Charter include the Schedules hereto and references to Clauses and Schedules are, unless otherwise specified, references to Clauses of and Schedules
                        to this Charter and, in the case of a Schedule, to such Schedule as incorporated in this Charter as substituted from time to time;

                  

          

        

        
          
            	

                  	(ii)	
                    any statutory or other legislative provision shall be construed as including any statutory or legislative modification or re-enactment thereof, or any
                        substitution therefor;

                  

          

        

        
          
            	

                  	(iii)	
                    the term “Vessel” includes any part of the Vessel;

                  

          

        

        
          
            	

                  	(iv)	
                    the “Owners”, the “Charterers”, any “Obligor”, “Sub-Charterers” or any other person include any of their respective successors, permitted assignees and permitted transferees;

                  

          

        

        
          
            	

                  	(v)	
                    any agreement, instrument or document include such agreement, instrument or document as the same may from time to time by amended, modified, supplemented,
                        novated or substituted;

                  

          

        

        
          
            	

                  	(vi)	
                    the “equivalent” in one currency (the “first currency”) as at any date of an amount in another currency (the “second currency”) shall be construed as a reference to the amount of the first currency which could be purchased with such amount of the second currency at the spot rate of exchange quoted
                        by the Owners at or about 11:00 a.m. two (2) Business Days (being a day other than a Saturday or Sunday on which banks and foreign exchange markets are generally open for business in Beijing) prior to such date for the purpose of
                        the first currency with the second currency for delivery and value on such date;

                  

          

        

        
          
            	

                  	(vii)	
                    “hereof”, “herein” and “hereunder” and other words of similar
                        import means this Charter as a whole (including the Schedules) and not any particular part hereof;

                  

          

        

        
          
            	

                  	(viii)	
                    “law” includes common or customary law and any
                        constitution, decree, judgment, legislation, order, ordinance, regulation, rule, statute, treaty or other legislative measure in any jurisdiction or any present or future directive, regulation, request or requirement, or official or
                        judicial interpretation of any of the foregoing, in each case having the force of law and, if not having the force of law, in respect of which compliance is generally customary;

                  

          

        

        
          17

          
            

        

        

        

        
          
            	

                  	(ix)	
                    the word “person” or “persons” or to words importing persons include, without limitation, any state, divisions of a state, government, individuals, partnerships, corporations,
                        ventures, government agencies, committees, departments, authorities and other bodies, corporate or unincorporated, whether having distinct legal personality or not;

                  

          

        

        
          
            	

                  	(x)	
                    the “winding-up”, “dissolution”, “administration”, “liquidation”, “insolvency”, “reorganisation”, “readjustment of
                          debt”, “suspension of payments”, “moratorium” or “bankruptcy” (and their derivatives and cognate expressions) of any person shall each
                        be construed so as to include the others and any equivalent or analogous proceedings or event under the laws of any jurisdiction in which such person is incorporated or any jurisdiction in which such person carries on business;

                  

          

        

        
          
            	

                  	(xi)	
                    “protection and indemnity risks” means the usual
                        risks covered by a protection and indemnity association which is a member of the International Group of P&I Club, including pollution risks, extended passenger cover and the proportion (if any) of any sums payable to any other
                        person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation in them of clause 6 of the International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the
                        Institute Time Clauses (Hull)(1/10/83) or clause 8 of the Institute Time Clauses (Hulls)(1/11/1995) or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision;

                  

          

        

        
          
            	

                  	(xii)	
                    (xii) a Potential Termination Event or Termination Event which is “continuing” is a reference to a Potential Termination Event or Termination Event which
                        is not remedied or waived; and

                  

          

        

        
          
            	

                  	(xiii)	
                    words denoting the plural number include the singular and vice versa.

                  

          

        

        
          
            	

                  	(b)	
                    Headings are for the purpose of reference only, have no legal or other significance, and shall be ignored in the interpretation of this Charter.

                  

          

        

        
          
            	

                  	(c)	
                    (c) A time of day (unless otherwise specified) is a reference to Beijing time.

                  

          

        

        34.    Background

        
          
            	

                  	(a)	
                    Pursuant to the Building Contract, the Charterers have agreed to purchase and the Builders have agreed to build and sell the Vessel subject to the terms
                        and conditions therein.

                  

          

        

        
          
            	

                  	(b)	
                    By a memorandum of agreement (the “MOA”) of even
                        date herewith made between the Owners (as buyers thereunder) and the Charterers (as sellers thereunder), the Owners have agreed to purchase and the Charterers have agreed to sell the Vessel subject to the terms and conditions
                        therein.

                  

          

        

        
          
            	

                  	(c)	
                    If:

                  

          

        

        
          
            	

                  	(i)	
                    the Vessel is not delivered by the Cancellation Date (or such later date as the Owners and the Charterers may agree) (other than caused by any act or
                        omission of any Obligor constituting a Potential Termination Event or Termination Event); or

                  

          

        

        
          
             

            

            
              18

              
                

            

            	

                  	(ii)	
                    it becomes unlawful for the Owners (as buyers) to perform or comply with any or all of their obligations under the MOA or any of the obligations of the
                        Owners under the MOA is not or ceases to be legal, valid, binding and enforceable,

                  

          

        

        neither Party shall be liable to the other for any claim arising out of this Charter and this
            Charter shall immediately terminate and be cancelled (with the exception of Clause 17 (Part II) (Indemnity) and Clause 61 (Further indemnities) provided however that

            the Charterers shall remain obliged to pay all fees which the Charterers are obliged to pay pursuant to paragraph (a) of Clause 58 (Fees and
              expenses), and any such payment shall not be construed as a penalty but shall represent an agreed estimate of the loss and damage suffered by the Owners in entering into this Charter and shall therefore be paid as compensation to the
            Owners.

        
          
            	

                  	(d)	
                    Accordingly the Parties hereby agree that the Owners’ obligation to charter the Vessel to the Charterers under this Charter is subject to the effective
                        transfer of ownership of the Vessel to the Owners pursuant to the Building Contract and the MOA.

                  

          

        

        35. Pre-delivery and delivery

        
          
            	

                  	(a)	
                    As at the date of this Charter, the Vessel is under construction by the Builders pursuant to the terms of the Building Contract. The Charterers hereby
                        confirm that they have reviewed, received and agreed to the forms of the Building Contract (or copies thereof).

                  

          

        

        
          
            	

                  	(b)	
                    The Owners will deliver and the Charterers will take delivery of the Vessel under this Charter immediately, which to the extent possible shall be deemed
                        to take place simultaneously, after the Builders deliver the Vessel to the Charterers under and subject to the terms of the Building Contract upon the Delivery Date and the Charterers deliver the Vessel to the Owners under the MOA
                        immediately thereafter, subject to which, the Charterers will accept the Vessel on an “as is where is” basis on delivery under this Charter.

                  

          

        

        
          
            	

                  	(c)	
                    Subject to the foregoing, once the Charterers have delivered the Vessel and the Owners have accepted the Vessel under the MOA, the Charterers will be
                        deemed to have accepted the Vessel under this Charter with any faults, deficiencies and errors of description.

                  

          

        

        
          
            	

                  	(d)	
                    The obligation of the Owners to purchase and take delivery of the Vessel pursuant to the MOA and to charter the Vessel to the Charterers pursuant to this
                        Charter shall be subject to the following conditions:

                  

          

        

        
          
            	

                  	(i)	
                    no Termination Event or Potential Termination Event having occurred which is continuing on the date of this Charter and the Delivery Date;

                  

          

        

        
          
            	

                  	(ii)	
                    the representations and warranties referred to in Clause 48 (Charterers’ representations and warranties) being true and correct in all material respects on the date of this Charter and the Delivery Date;

                  

          

        

        
          
            	

                  	(iii)	
                    the Owners shall have received the documents and evidence referred to in Clause 37 (Conditions precedent), in each case in all respects in form and

                  

          

        

        
          19

          
            

        

        

        

        substance satisfactory to it on or before the Delivery Date (unless waived by the Owners);

        
          
            	

                  	(iv)	
                    the Delivery Date falls on or before the Cancellation Date (or such later date as may be agreed between the Owners (as buyer under the MOA) and the
                        Charterers (as seller under the MOA)); and

                  

          

        

        
          
            	

                  	(v)	
                    delivery of the Vessel to the Charterers by the Builders under and subject to the Building Contract and the simultaneous delivery of the Vessel from the
                        Charterers to the Owners under and subject to the terms of the MOA.

                  

          

        

        
          
            	

                  	(e)	
                    Provided that the conditions referred to in paragraph (d) above have been fulfilled or waived with or without conditions to the satisfaction of the Owners
                        (which shall be evidenced in writing by the Owners), the Owners and the Charterers agree that:

                  

          

        

        
          
            	

                  	(i)	
                    the Charterers shall, at their own expense, upon the Delivery Date arrange for the Vessel to be registered in the name of the Owners as registered owner,
                        and procure the issue of a transcript of register, giving evidence of title which shows the Owners being registered as the registered owner and that the Vessel is free from any registered Security Interest (other than any
                        mortgage(s) registered by the Owners in favour of the Finance Parties);

                  

          

        

        
          
            	

                  	(ii)	
                    the Charterers shall take delivery of the Vessel from the Owners under this Charter (such delivery to be conclusively evidenced by a duly executed PDA)
                        simultaneously with the acceptance of delivery of the Vessel by the Owners from the Charterers pursuant to the MOA;

                  

          

        

        
          
            	

                  	(iii)	
                    the Charterers will accept the Vessel:

                  

          

        

        
          
            	

                  	(A)	
                    on an “as is where is” basis in exactly the same form and state as the Vessel is delivered by the Charterers to the Owners pursuant to the MOA; and

                  

          

        

        
          
            	

                  	(B)	
                    in such form and state with any faults, deficiencies and errors of description;

                  

          

        

        
          
            	

                  	(iv)	
                    the acceptance of delivery of the Vessel by the Charterers from the Owners pursuant to this Charter shall take place simultaneously with the acceptance of
                        delivery of the Vessel by the Charterers from the Builders pursuant to the Building Contract and the acceptance of delivery of the Vessel by the Owners from the Charterers pursuant to the MOA; and

                  

          

        

        
          
            	

                  	(v)	
                    the Charterers shall have no right to refuse acceptance of delivery of the Vessel into this Charter if the Vessel is delivered to the Owners pursuant to
                        the MOA and, notwithstanding and without prejudice to the foregoing, the Owners and the Charterers nonetheless agree to enter into and execute the PDA on delivery of the Vessel under this Charter.

                  

          

        

        
          
            	

                  	(f)	
                    The Charterers acknowledge and agree that the Owners are not the manufacturer or original supplier of the Vessel which has been purchased by the Owners
                        from the Charterers pursuant to the MOA, and have therefore made no representations or warranties in respect of the Vessel or any part thereof, and hereby waive all their rights in respect of any warranty or condition implied
                        (whether statutory or otherwise)

                  

          

        

        
          20

          
            

        

        

        

        on the part of the Owners and all claims against the Owners howsoever the same might arise at any
            time in respect of the Vessel, or arising out of the construction, operation or performance of the Vessel and the chartering thereof under this Charter (including, without limitation, in respect of the seaworthiness or otherwise of the Vessel).

        
          
            	

                  	(g)	
                    In particular, and without prejudice to the generality of paragraph (f) above, the Owners shall be under no liability whatsoever, howsoever arising, in
                        respect of the injury, death, loss, damage or delay of or to or in connection with the Vessel or any person or property whatsoever, whether onboard the Vessel or elsewhere, and irrespective of whether such injury, death, loss,
                        damage or delay shall arise from the unseaworthiness of the Vessel. For the purpose of this paragraph (g), “delay” shall include delay to the Vessel (whether in respect of delivery under this Charter or thereafter and any other
                        delay whatsoever).

                  

          

        

        36. Construction and supervision

        
          
            	

                  	(a)	
                    The Vessel shall be constructed in accordance with the Building Contract, under the supervision of the Charterers in accordance with the terms of the
                        Building Contract and this Charter.

                  

          

        

        
          
            	

                  	(b)	
                    During the construction of the Vessel, the Charterers shall procure that, at its own costs and risks, all the supervision work is diligently carried out
                        in accordance with the terms of the Building Contract and attend all tests and trials as stipulated in the Building Contract (together the “Supervision Work”). In addition, the Charterers shall:

                  

          

        

        
          
            	

                  	(i)	
                    if so requested by the Owners, provide to the Owners the following information and documents from time to time:

                  

          

        

        
          
            	

                  	(A)	
                    the latest specifications and all drawings and plans (as referred to in the Building Contract) provided by the Builders from time to time;

                  

          

        

        
          
            	

                  	(B)	
                    all information and documents (if any) as communicated by the Builders to the Charterers (or the supervisors appointed by the Charterers) in relation to
                        the inspections, tests and trials of the Vessel and its equipment and parts which have not been sent or copied to the Owners; and

                  

          

        

        
          
            	

                  	(C)	
                    all rules, regulations and requirements referred to in the Building Contract and/or the specifications (the “Rules”), including but not limited to the rules, regulations and requirements of the Classification Society notified by the Builders (or, as the case maybe) to the
                        Charterers or the Supervisor from time to time and by the maritime authority of the Pre-Approved Flag;

                  

          

        

        
          
            	

                  	(ii)	
                    assist the Owners in every way to achieve smooth documentary delivery of the Vessel including, but not limited to, checking and confirming to the Owners
                        the certificates, technical documents, drawings and plans required under the Building Contract; and

                  

          

        

        
          
            	

                  	(iii)	
                    in the event of any dispute under the relevant provisions of the Building Contract, advise the Owners with regard to all technical matters.

                  

          

        

        
          21

          
            

        

        

        

        
          
            	

                  	(c)	
                    The Charterers warrant and undertake to the Owners that it shall (and it shall procure that the Supervisor shall) comply with the following provisions in
                        carrying out all the Supervision Work:

                  

          

        

        
          
            	

                  	(i)	
                    the Supervision Work carried out and the decision made or advice given to the Owners by the Charterers, the Supervisor, its employees, sub-contractors are
                        in accordance with professional shipbuilding practices and standard;

                  

          

        

        
          
            	

                  	(ii)	
                    the Supervision Work shall be carried out in accordance with the agreed inspection procedure and schedule pursuant to the Building Contract and in a way
                        to minimize any unjustifiable increase in building costs and delays in the construction of the Vessel;

                  

          

        

        
          
            	

                  	(iii)	
                    the Owners shall be under no liability whatsoever to the Charterers or the Supervisor or their employees or agents for personal injuries, including death,
                        during the time when they, or any of them, are on the Vessel, or within the premises of either the Builders or subcontractors of the Builders, or are otherwise engaged in and about the construction of the Vessel other than of the
                        personal injury or death has arisen as a result of the Owners’ gross negligence or wilful misconduct, and the Owners shall not be under any liability whatsoever to the Supervisors or the Charterers for damage to, or loss or
                        destruction of any property of the Charterers or its employees or agents. The Charterers shall hold the Owners harmless and indemnified against all Losses caused by the Charterers, the Supervisor and/or their employees or agents
                        arising from and/or in connection with the attendance by the Charterers or its employees or agents of the supervision, survey and inspection of the Vessel.

                  

          

        

        37. Conditions precedent

        
          
            	

                  	(a)	
                    Notwithstanding anything to the contrary in this Charter, the obligations of the Owners to purchase and take delivery of the Vessel pursuant to the MOA
                        and to charter the Vessel to the Charterers under this Charter are subject to and conditional upon the Owners’ receipt of following documents and evidence (in each case in form and substance acceptable to the Owners) on or before
                        the Delivery Date (or such other date as the Owners and the Charterers may agree):

                  

          

        

        
          
            	

                  	(i)	
                    an original of each of the following:

                  

          

        

        
          
            	

                  	(A)	
                    the duly executed Charter;

                  

          

        

        
          
            	

                  	(B)	
                    the duly executed MOA;

                  

          

        

        
          
            	

                  	(C)	
                    the following duly executed Security Documents:

                  

          

        

        
          
            	

                  	(I)	
                    the Charter Guarantees;

                  

          

        

        
          
            	

                  	(II)	
                    the Charterers’ Assignment;

                  

          

        

        
          
            	

                  	(III)	
                    the Managers’ Undertaking;

                  

          

        

        
          
            	

                  	 (IV)	
                    the Shares Pledge;

                  

          

        

        
          
            	

                  	(V)	
                    the Account Charge;

                  

          

        

        
          22

          
            

        

        

        

        
          
            	

                  	(VI)	
                    Sub-Charter Assignment (if any); and

                  

          

        

        
          
            	

                  	(D)	
                    all documents required by any of the Security Documents set out in paragraph (C), including but not limited to the notices and acknowledgement required
                        under such Security Documents, except for the letters of undertaking from the insurers, underwriters, protection and indemnity clubs and association which will be provided to the Owners and the acknowledgment by the Sub- Charterers
                        (if any) to the assignment of the Sub-Charter, both of which will be required under the Charterers’ Assignment and provided to the Owners in accordance with Clause 78 (Conditions subsequent);

                  

          

        

        
          
            	

                  	(ii)	
                    certified true copies of the memorandum and articles of association (or equivalent documents) (and all amendments thereto) of each Obligor and any other
                        documents required to be filed or registered or issued under the laws of their jurisdiction of incorporation to establish their incorporation;

                  

          

        

        
          
            	

                  	(iii)	
                    certified true copies of written resolutions or (as the case may be), resolutions passed at separate meetings, in each case, of the board of directors and
                        (if required by any legal advisors to the Owners) shareholders of each Obligor (or the relevant stakeholders as such legal advisors may specify), evidencing its approval of the Transaction Documents and the Project Documents to
                        which it is a party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given hereunder or thereunder on its behalf or other evidence of such approvals and authorisations as
                        shall be acceptable to the Owners;

                  

          

        

        
          
            	

                  	(iv)	
                    if applicable, the original power of attorney of each Obligor under which any documents (including the Transaction Documents to which it is a party) are
                        to be executed or transactions undertaken by that party;

                  

          

        

        
          
            	

                  	(v)	
                    a certified list specifying the directors and officers of each of the Obligors (together with their respective specimen signatures);

                  

          

        

        
          
            	

                  	(vi)	
                    if applicable, copies of all Necessary Authorisations;

                  

          

        

        
          
            	

                  	(vii)	
                    copies of the following:

                  

          

        

        
          
            	

                  	(A)	
                    the duly executed Building Contract;

                  

          

        

        
          
            	

                  	(B)	
                    the duly executed Management Agreement;

                  

          

        

        
          
            	

                  	(C)	
                    in each case together with all addenda, amendments or supplements;

                  

          

        

        
          
            	

                  	(viii)	
                    originals (unless otherwise stated) of the following documents (or evidence that they will be provided to the Owners on or before the Delivery Date)
                        relating to the Vessel and her delivery to the Charterers under the Building Contract:

                  

          

        

        
          
            	

                  	(A)	
                    copies of bill of sale (from the Builders to the Original Buyers), builder’s certificate, declaration of warranty and commercial invoice

                  

          

        

        
          23

          
            

        

        

        

        issued by the Builders to the Original Buyers (with the originals to be delivered to the Owners
            in accordance with Clause 78 (Conditions subsequent));

        
          
            	

                  	(B)	
                    certified copies protocol of delivery and acceptance for the Vessel executed by the Builders and the Original Buyers;

                  

          

        

        
          
            	

                  	(C)	
                    bill of sale (from the Original Buyers to the Charterers) and commercial invoice issued by the Original Buyers to the Charterers;

                  

          

        

        
          
            	

                  	(D)	
                    protocol of delivery and acceptance for the Vessel executed by the Original Buyers and the Charterers;

                  

          

        

        
          
            	

                  	(E)	
                    assignment of Builders’ warranties relating to the Vessel under the Building Contract duly executed by the Original Buyers in favour of the Owners
                        together with a copy of the notice of assignment by the Original Buyers to the Builders and a copy of the acknowledgement of assignment from the Builders to the Owners acknowledging the assignment of the Builders’ warranties for
                        which the Original Buyers will use their reasonable endeavours to obtain, each in a form acceptable to the Owners;

                  

          

        

        
          
            	

                  	(F)	
                    such evidence as the Owners may reasonably require as to the due execution of the aforesaid documents;

                  

          

        

        
          
            	

                  	(ix)	
                    evidence that the contract price of the Vessel and other sums due and payable to the Builders under the Building Contract have been paid to the Builders
                        and fully settled;

                  

          

        

        
          
            	

                  	(x)	
                    evidence that:

                  

          

        

        
          
            	

                  	(A)	
                    all the conditions under clause 8 of the MOA have been satisfied or, in the Owners’ opinion, will be satisfied on the Owners’ Cost Payment Date;

                  

          

        

        
          
            	

                  	(B)	
                    subject to Clause 78 (Conditions Subsequent), the
                        Vessel is (or will on the Delivery Date) be insured in the manner required by the Transaction Documents;

                  

          

        

        
          
            	

                  	(C)	
                    the Original Buyers have at their own expenses taken delivery of the Vessel from the Builders according to the Building Contract and the Charterers have
                        at their own expenses taken delivery of the Vessel from the Original Buyers;

                  

          

        

        
          
            	

                  	(xi)	
                    copies of:

                  

          

        

        
          
            	

                  	(A)	
                    the Approved Managers’ current Document of Compliance (as such term is defined pursuant to the ISM Code);

                  

          

        

        
          
            	

                  	(B)	
                    the Vessel’s current IAPPC;

                  

          

        

        
          
            	

                  	(C)	
                    the Vessel’s interim Classification Certificate;

                  

          

        

        
          24

          
            

        

        

        

        
          
            	

                  	(xii)	
                    a Valuation Report (at the Charterers’ cost) evidencing that the Market Value of the Vessel is no less than US$157,500,000;

                  

          

        

        
          
            	

                  	(xiii)	
                    evidence that the fees, costs and expenses then due from the Charterers pursuant to the MOA and this Charter (including Clauses 58 (Fees and expenses) and 61 (Further
                          indemnities)) have been paid or will be paid at such time as is agreed with the Owners;

                  

          

        

        
          
            	

                  	(xiv)	
                    (xiv) a legal opinion issued by legal advisers to the Owners in the following jurisdictions, each in form and substance satisfactory to and agreed by the
                        Owners (acting reasonably) (or confirmation satisfactory to the Owners that such an opinion will be given):

                  

          

        

        
          
            	

                  	(A)	
                    England and Wales;

                  

          

        

        
          
            	

                  	(B)	
                    the Marshall Islands;

                  

          

        

        
          
            	

                  	(C)	
                    Norway;

                  

          

        

        
          
            	

                  	(D)	
                    Bermuda; and

                  

          

        

        
          
            	

                  	(E)	
                    such other jurisdictions as the Owners may reasonably consider necessary; and

                  

          

        

        
          
            	

                  	(xv)	
                    a certified copy of any duly executed Sub-Charter, if applicable, together with all addenda, amendments or supplements.

                  

          

        

        
          
            	

                  	(b)	
                    If the Owners in their sole discretion agree to deliver the Vessel under this Charter to the Charterers before all of the documents and evidence required
                        by this Clause 37 have been delivered to or to the order of the Owners, the Charterers undertake to deliver all outstanding documents and evidence to or to the order of the Owners no later than seven (7) Business Days after the
                        Delivery Date or such other date as specified by the Owners, acting in their sole discretion. The delivery of the Vessel by the Owners to the Charterers under this Charter shall not, unless otherwise notified by the Owners (acting
                        in their sole discretion) to the Charterers in writing, be taken as a waiver of the Owners’ right to require production of all the documents and evidenced required by this Clause 37.

                  

          

        

        38.    Bunkers and luboils

        
          
            	

                  	(a)	
                    At delivery the Charterers shall take over all bunkers, lubricating oil, hydraulic oil, greases, water and unbroached stores and provisions in the Vessel
                        without cost.

                  

          

        

        
          
            	

                  	(b)	
                    To the extent that Clause 43 (Redelivery) applies,
                        at redelivery the Owners shall take over all bunkers, unused lubricating oil, hydraulic oil, greases, water and unbroached provisions and other consumable stores in the Vessel at the cost of the Owners (which cost shall be
                        determined at the original purchase price as evidenced by copies of invoices certified by a director or attorney of the Charterers and which shall be payable until all payments receivable by the Owners upon redelivery have been
                        received by the Owners and, at the Owners’ option, such cost may be set-off against any payment receivable by the Owners), provided that the Owners shall not be responsible for any such costs of bunkers, lubricating oil, hydraulic
                        oil, greases, water and unbroached stores and provisions in the Vessel after the occurrence of a

                  

          

        

        
          25

          
            

        

        
        

        

        Termination Event and the redelivery of the Vessel is effected a result of such Termination Event.

        39.    Further maintenance and operation

        
          
            	

                  	(a)	
                    The good commercial maintenance practice under Clause 10 (Maintenance

                          and Operation) (Part II) of this Charter shall be deemed to include:

                  

          

        

        
          
            	

                  	(i)	
                    the maintenance and operation of the Vessel by the Charterers in accordance with (as the following are amended from time to time):

                  

          

        

        
          
            	

                  	(A)	
                    the relevant regulations, requirements and recommendations of the Classification Society;

                  

          

        

        
          
            	

                  	(B)	
                    the relevant regulations, requirements and recommendations of the country and flag of the Vessel’s registry;

                  

          

        

        
          
            	

                  	(C)	
                    any applicable IMO regulations (including but not limited to the ISM Code, the ISPS Code and MARPOL);

                  

          

        

        
          
            	

                  	(D)	
                    all other applicable laws or regulations; and

                  

          

        

        
          
            	

                  	(E)	
                    Charterers’ current standard operations and maintenance manuals;

                  

          

        

        
          
            	

                  	(ii)	
                    the maintenance and operation of the Vessel by the Charterers taking into account:

                  

          

        

        
          
            	

                  	(A)	
                    engine manufacturers’ recommended maintenance and service schedules;

                  

          

        

        
          
            	

                  	(B)	
                    Builder’s operations and maintenance manuals; and

                  

          

        

        
          
            	

                  	(iii)	
                    recommended maintenance and service schedules of all installed equipment and pipework.

                  

          

        

        
          
            	

                  	(b)	
                    In addition to the above, the Charterers shall at the request of the Owners, arrange access to class records for the Owners as available to the
                        Charterers.

                  

          

        

        
          
            	

                  	(c)	
                    Any equipment that is found not to be required on board as a result of law or regulation is either to be removed at the Charterers expense or to be
                        maintained in operable condition.

                  

          

        

        
          
            	

                  	(d)	
                    The title to any equipment:

                  

          

        

        
          
            	

                  	(i)	
                    placed on board as a result of operational requirements of the Charterers shall automatically be deemed to belong to the Owners (unless hired from or
                        belonging to a third party) immediately upon such placement, and such equipment may only be removed: (A) with the Owners’ prior written consent, (B) at the Charterers’ own expense, and (C) without damage to the Vessel; and

                  

          

        

        
          
            	

                  	(ii)	
                    replaced, renewed or substituted shall remain with the Owners until the part or equipment which replaced it or the new or substitute part or equipment
                        becomes property of the Owners.

                  

          

        

        
          27

          
            

        

        

        

        
          
            	

                  	(e)	
                    Without prejudice to any other provisions under this Charter, the Charterers shall maintain, use and operate the Vessel with commercially reasonable care
                        as if the Charterers were the owner of the same.

                  

          

        

        40.    Structural changes and alterations

        
          
            	

                  	(a)	
                    Unless required by the Classification Society, compulsory legislation or pursuant to the terms of any Sub-Charter, the Charterers shall make no material
                        structural changes in the Vessel or material changes in the machinery, engines, appurtenances or spare parts thereof without in each instance first securing the Owners’ consent thereto, such consent not to be unreasonably withheld
                        or delayed, provided that:

                  

          

        

        
          
            	

                  	(i)	
                    any such changes do not have a material adverse effect on the Vessel’s certification or the Vessel’s fitness for purpose;

                  

          

        

        
          
            	

                  	(ii)	
                    any such changes will not diminish the value of the Vessel and/or have a material adverse effect on the safety, performance, value or marketability of the
                        Vessel;

                  

          

        

        
          
            	

                  	(iii)	
                    the Charterers shall bear all time, costs and expenses in relation to any such changes;

                  

          

        

        
          
            	

                  	(iv)	
                    the Charterers shall furnish the Owners with:

                  

          

        

        
          
            	

                  	(A)	
                    copies of all plans in relation to such changes;

                  

          

        

        
          
            	

                  	(B)	
                    if applicable, confirmation from the Classification Society that such changes will not adversely affect the class of the Vessel, provided always that such
                        Classification Society agrees to issue such confirmation;

                  

          

        

        
          
            	

                  	(C)	
                    one Valuation Report (at the Charterers’ cost) on the Market Value of the Vessel after the implementation of such changes.

                  

          

        

        Upon the occurrence of any Termination Event which is continuing, if the Owners decide to retake
            possession of the Vessel, the Charterers shall at their expense restore the Vessel to its former condition unless the changes made are carried out:

        
          
            	

                  	(D)	
                    to improve the performance, operation or marketability of the Vessel; or

                  

          

        

        
          
            	

                  	(E)	
                    as a result of a regulatory compliance.

                  

          

        

        
          
            	

                  	(b)	
                    Any improvement, structural changes or new equipment becoming necessary for the continued operation of the Vessel by reason of new class requirements or
                        by compulsory legislation shall be for the Charterers’ account and the Charterers shall not have any right to recover from the Owners any part of the cost for such improvements, changes or new equipment either during the Charter
                        Period or, to the extent that Clause 43 (Redelivery) applies, at redelivery of the Vessel. The Charterers shall give written
                        notice to the Owners of any such improvement, structural changes or new equipment.

                  

          

        

        
          28

          
            

        

        

        

        41.    Hire
        
          
             

            

            	

                  	(a)	
                    In consideration of the Owners’ agreement to charter the Vessel to the Charterers pursuant to the terms hereof, the Charterers agree to pay to the Owners
                        the following sums on the relevant dates as follows:

                  

          

        

        
          
            	

                  	(i)	
                    on the Delivery Date, the amount of US Dollars Fifty Two Million Five Hundred Thousand (US$52,500,000) (the “Advance Hire”) provided that:

                  

          

        

        
          
            	

                  	(A)	
                    the Advance Hire shall be subject to netting against the Purchase Price in accordance with the terms of the MOA;

                  

          

        

        
          
            	

                  	(B)	
                    the Advance Hire shall not constitute any part of the Hire; and

                  

          

        

        
          
            	

                  	(C)	
                    the Advance Hire shall be non-refundable;

                  

          

        

        
          
            	

                  	(ii)	
                    on each and every Hire Payment Date, by way of fixed hire (each a “Fixed Hire”) the relevant amount then payable on the corresponding Hire Payment Date as determined by reference to the column headed “Fixed Hire” in the hire payment schedule as attached as Schedule 1 (Hire Payment Schedule) hereto (the “Hire

                          Payment Schedule”);

                  

          

        

        
          
            	

                  	(iii)	
                    on each and every Hire Payment Date, by way of variable hire (each such payment, a “Variable Hire”) then payable. The amount of Variable Hire payable on each Hire Payment Date is calculated by multiplying (A) the Cost Balance immediately prior to the relevant Hire Payment Date by
                        (B) the aggregate of the Margin and the then Applicable Rate and (C) a fraction whose denominator is three hundred and sixty (360) and numerator is the number of days which will elapse from that Hire Payment Date (including that
                        day) until the next Hire Payment Date (or, if the Hire Period does not end on a Hire Payment Date, the last day of the Hire Period) (not including that day) during the then Hire Period (the “Formula”).

                  

          

        

        For the purpose of determining any Hire payment:

        
          
            	

                  	(A)	
                    Variable Hire shall accrue during each Hire Period;

                  

          

        

        
          
            	

                  	(B)	
                    the Charterers hereby expressly acknowledge that the Hire Payment Schedule in its current form and content as attached hereto is based on the Assumed
                        Owners’ Costs and therefore on the date hereof is indicative and is for reference purpose only; and

                  

          

        

        
          
            	

                  	(C)	
                    accordingly, the Charterers irrevocably consent and agree with the Owners that the Owners shall deliver to the Charterers, on or at any relevant time
                        during the Charter Period, an amended Hire Payment Schedule calculated by reference to the relevant circumstances and parameters at such time (including, without limitation, (x) the Actual Owners’ Costs and (y) the Cost Balance at
                        any relevant time since the last Hire Payment Schedule is prepared). Any amended Hire Payment Schedule prepared and delivered to the Charterers pursuant to this sub-paragraph (iii) shall, from the date the same is delivered to and
                        approved by the Charterers (such approval not to be unreasonably withheld or delayed), be deemed to be incorporated

                  

          

        

        
          29

          
            

        

        

        

        into this Charter and, for the purposes of this Charter, shall thereafter:

        (I) constitute the current Hire Payment Schedule; and

        
          
            	

                  	(II)	
                    save for manifest error, be conclusive evidence of the rate of Hire payable under this Charter. The Owners shall, as soon as practicable after receipt of
                        a request of the Charterers, send to the Charterers such details as may reasonably be required by the Charterers setting out the manner in which any such rate of Hire has been calculated, together with such documents and
                        calculations as may reasonably be required by the Charterers in order to verify the same; and

                  

          

        

        
          
            	

                  	(D)	
                    in the event of any conflict between the Formula and the Hire Payment Schedule, the Hire Payment Schedule shall prevail.

                  

          

        

        
          
            	

                  	(b)	
                    The Hire shall be paid to the Owners’ Account in advance before 4:00 p.m. (Beijing time) on each Hire Payment Date (in respect of which time is of the
                        essence).

                  

          

        

        
          
            	

                  	(c)	
                    Any payment provided herein due on any day which is not a Business Day shall be payable on the immediately preceding Business Day.

                  

          

        

        
          
            	

                  	(d)	
                    All payments under this Charter shall be made to the account opened in the name of the Owners as specified in Box 26 (Part I) or such other account opened
                        in the name of the Owners (the “Owners’ Account”) with such bank as the Owners may choose, the details of which shall be notified
                        by the Owners to the Charterers no later than five (5) Business Days prior to the Delivery Date (or such other account as the Owners may notify the Charterers in writing from time to time) for credit to the account of the Owners.

                  

          

        

        
          
            	

                  	(e)	
                    Following delivery of the Vessel to, and acceptance by, the Charterers under this Charter, the Charterers’ obligation to pay Hire in accordance with this
                        Clause 41 (Hire) shall, subject to Clause 17 (Indemnity), be absolute irrespective of any contingency whatsoever including but not limited to:

                  

          

        

        
          
            	

                  	(i)	
                    any set-off (save as permitted under Clause 41(a)), counterclaim, recoupment, defence or other right which the Charterers may have against the Owners, the
                        Finance Parties or any other third party (unless otherwise agreed between the Owners and the Charterers);

                  

          

        

        
          
            	

                  	(ii)	
                    any unavailability of the Vessel, for any reason, including but not limited to any action or inaction by any sub-charterer, seaworthiness, condition,
                        design, operation, merchantability or fitness for use or purpose of the Vessel or any apparent or latent defects in the Vessel or its machinery and equipment or the ineligibility of the Vessel for any particular use or trade or for
                        registration of documentation under the laws of any relevant jurisdiction or lack of registration or the absence or withdrawal of any consent required under the applicable law of any relevant jurisdiction for the ownership,
                        chartering, use or operation of the Vessel or any damage to the Vessel;

                  

          

        

        
          
            	

                  	(iii)	
                    any lack or invalidity of title or any other defect in title;

                  

          

        

        
          30

          
            

        

        

        

        
          
            	

                  	(iv)	
                    any failure or delay on the part of either Party to this Charter, whether with or without fault on its part, in performing or complying with any of the
                        terms, conditions or other provisions of this Charter;

                  

          

        

        
          
            	

                  	(v)	
                    any insolvency, bankruptcy, reorganisation, arrangement, readjustment of debt, dissolution, administration, liquidation or similar proceedings by or
                        against the Owners, the Charterers or any Sub-Charterers, or any change in the constitution of the Owners, the Charterers or any Sub-Charterers;

                  

          

        

        
          
            	

                  	(vi)	
                    any invalidity or unenforceability or lack of due authorisation of or any defect in this Charter or any Sub-charter (where applicable); or

                  

          

        

        
          
            	

                  	(vii)	
                    any other cause which would but for this provision have the effect of terminating or in any way affecting the obligations of the Charterers hereunder,

                  

          

        

        it being the intention of the Parties that the provisions of this Clause 41 (Hire), and the obligation of the Charterers to pay Hire and make any payments under this Charter, shall (save as expressly provided in this
            Clause 41 (Hire)) survive any frustration and that, save as expressly provided in this Charter, no moneys paid under this Charter by the
            Charterers to the Owners shall in any event or circumstance be repayable to the Charterers).

        
          
            	

                  	(f)	
                    All payments of Hire and all other Unpaid Sums to the Owners pursuant to this Charter and the other relevant Transaction Documents shall be made in
                        immediately available funds in USD, free and clear of, and without deduction for or on account of, any Taxes, unless the Charterers are required by law or regulation to make any such payment of Hire subject to such taxes.

                  

          

        

        
          
            	

                  	(g)	
                    In the event that the Charterers are required by any law or regulation to make any deduction or withholding on account of any taxes which arise as a
                        consequence of any payment due under this Charter, then:

                  

          

        

        
          
            	

                  	(i)	
                    the Charterers shall notify the Owners promptly after they become aware of such requirement;

                  

          

        

        
          
            	

                  	(ii)	
                    the Charterers shall remit the amount of such taxes to the appropriate taxation authority within any applicable time limits and in any event prior to the
                        date on which penalties attach thereto; and

                  

          

        

        
          
            	

                  	(iii)	
                    such payment shall be increased by such amount as may be necessary to ensure that the Owners receive a net amount which, after deducting or withholding
                        such taxes, is equal to the full amount which the Owners would have received had such payment not been subject to such taxes.

                  

          

        

        
          
            	

                  	(h)	
                    The Charterers shall forward to the Owners evidence satisfactory to the Owners that any such taxes have been remitted to the appropriate taxation
                        authority within thirty (30) days of the expiry of any time limit within which such taxes must be so remitted or, if earlier, the date on which such taxes are so remitted.

                  

          

        

        
          
            	

                  	(i)	
                    Subject to paragraph (a)(i) of Clause 51 (Termination
                          Events), if the Charterers fail to pay any amount payable by it under a Transaction Document on its due date, interest shall accrue on the Unpaid Sum from the due date up to the date of actual payment

                  

          

        

        
          31

          
            

        

        

        

        (both before and after judgment) at a rate which is two per cent (2%) per annum higher than the
            rate which would have been payable if the Unpaid Sum had, during the period of non-payment, constituted a Fixed Hire in the currency of the Unpaid Sum for successive Hire Periods. Any interest accruing under this paragraph (i) shall be
            immediately payable by the Charterers on demand by the Owners. Default interest (if unpaid) arising on an Unpaid Sum will be compounded with the Unpaid Sum at the end of each period selected by the Owners but will remain immediately due and
            payable.

        
          
            	

                  	(j)	
                    In the event that this Charter is terminated for whatever reason, the Charterers’ obligation to pay Hire and such other Unpaid Sum which (in each case)
                        has accrued due before such termination, and which remains unpaid at the date of such termination, shall continue notwithstanding such termination.

                  

          

        

        
          
            	

                  	(k)	
                    In the event that it becomes unlawful or it is prohibited for either the Owners or the Charterers to charter the Vessel pursuant to this Charter, then the
                        Owners and Charterers shall, if and to the extent that such new or changed law or regulation or such interpretation or application permit, notify the other Party of the relevant event and negotiate in good faith for a period of
                        thirty (30) days from the date of the receipt of the relevant notice by the other Party to agree an alternative. If such agreement is not reached within such thirty (30)-day period, the Charterers agree that, in such circumstances,
                        the Owners shall have the right to terminate this Charter by delivering to the Charterers a Termination Notice, whereupon the Charterers shall be obliged to pay to the Owners the Early Termination Amount.

                  

          

        

        
          
            	

                  	(l)	
                    Subject to paragraph (n) below, the Charterers shall, within ten (10) Business Days of a demand by the Owners, pay to the Owners the amount of any
                        Increased Costs incurred directly by the Owners as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or regulation
                        made after the date of this Charter.

                  

          

        

        
          
            	

                  	(i)	
                    “Increased Costs” means:

                  

          

        

        
          
            	

                  	(A)	
                    a reduction in the rate of return from the Hire or on the Owners’ overall capital;

                  

          

        

        
          
            	

                  	(B)	
                    an additional or increased cost; or

                  

          

        

        
          
            	

                  	(C)	
                    a reduction of any amount due and payable under any Transaction Document,

                  

          

        

        which is incurred or suffered by the Owners to the extent that it is attributable to the Owners
            having entered into any Transaction Document or funding or performing its obligations under any Transaction Document.

        
          
            	

                  	(m)	
                    The Owners shall notify the Charterers of any claim arising from paragraph (l) above (and of the event giving rise to such claim). The Owners shall, as
                        soon as practicable after having made a demand in respect of such claim, provide a certificate confirming the amount of its Increased Costs.

                  

          

        

        
          
            	

                  	(n)	
                    Paragraph (l) above does not apply to the extent any Increased Costs is:

                  

          

        

        
          
            	

                  	(i)	
                    compensated for by a payment made under paragraph (g)(iii) above; or

                  

          

        

        
          32

          
            

        

        

        

        
          
            	

                  	(ii)	
                    attributable to the wilful breach by the Owners of any law or regulation.

                  

          

        

        
          
            	

                  	(o)	
                    The Charterers shall, within ten (10) Business Days of demand by the Owners, pay to the Owners any Break Costs.

                  

          

        

        
          
            	

                  	(p)	
                    Any certificate or statement signed by an authorised signatory of the Owners purporting to show the amount of the Debt (or any part of the Debt) or any
                        other amount referred to in any Transaction Document shall, save for manifest error or on any question of law, be conclusive evidence as against the Charterers of that amount. The Owners shall, as soon as practicable after receipt
                        of a request of the Charterers, send to the Charterers such details as may reasonably be required by the Charterers setting out the manner in which any such amount has been calculated provided that any such amount, except in the case of manifest error or on any question of law, shall be payable irrespective of whether the Charterers are satisfied with
                        the form or content of any such detail, document or calculation.

                  

          

        

        
          
            	

                  	(q)	
                    If a change in any currency occurs, this Charter will, to the extent the Owners and the Charterers agree to be necessary, be amended to comply with any
                        generally accepted conventions and market practice in the relevant market and otherwise to reflect the change in currency.

                  

          

        

        (r)

        
          
            	

                  	(i)	
                    If no Screen Rate is available for LIBOR for that relevant period, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in length
                        to that relevant period; and

                  

          

        

        
          
            	

                  	(ii)	
                    If no Screen Rate is available for LIBOR for that relevant period and it is not possible to calculate the Interpolated Screen Rate, the applicable LIBOR
                        shall be the Reference Bank Rate as of 11:00a.m. London time for USD and for a period equal in length to that relevant period.Market Disruption Event

                  

          

        

        
          
            	

                  	(iii)	
                    In this Charter a Market Disruption Event shall
                        occur if:

                  

          

        

        
          
            	

                  	(A)	
                    at or about noon on the Applicable Rate Determination Date for an Applicable Rate Period LIBOR is not available and the Owners is unable to obtain quotes
                        from leading banks in the London interbank market enabling it to determine LIBOR for the relevant Applicable Rate Period; or

                  

          

        

        
          
            	

                  	(B)	
                    before close of business in London on the Applicable Rate Determination Date for an Applicable Rate Period, the Owners notify the Charterers that the cost
                        to it of funding the Cost Balance from whatever source it may reasonably select for that Applicable Rate Period would be in excess of LIBOR.

                  

          

        

        
          
            	

                  	(iv)	
                    If a Market Disruption Event has occurred in relation to that Applicable Rate Period, the Applicable Rate shall be the rate which expresses as a
                        percentage rate per annum the cost to the Owners of the Cost Balance from whatever source it may reasonably select.

                  

          

        

        
          
            	

                  	(v)	
                    If a Market Disruption Event occurs and the Owners and/or the Charterers so require, the Owners and the Charterers shall enter into negotiations (for a

                  

          

        

        
          33

          
            

        

        

        

        period of not more than 30 days) with a view to agreeing a substitute basis (replacing LIBOR) for
            determining the Variable Hire. Any alternative basis so agreed shall, with the prior consent of the Charterers and the Owners, be binding on all of the Parties. In the absence of such agreement, the Variable Hire shall be determined in
            accordance with Sub-clause(ii) above provided that the Charterers shall have the right, upon giving thirty (30) days notice to the Owners, to terminate this Charter, whereupon the Charterers shall be obliged to pay to the Owners the Early
            Termination Amount.

        
          
            	

                  	(s)	
                    Discontinuance of LIBOR

                  

          

        

        If LIBOR is discontinued, the Parties agree to substitute an alternative
            benchmark for determining the Variable Hire based on the prevailing market practice and having regard to the legal and regulatory requirements applicable to any of them. In the absence of any agreement the Charterers shall have the right upon
            giving thirty (30) days notice to the Owners, to terminate this Charter, whereupon the Charterers shall be obliged to pay to the Owners the Early Termination Amount.

        42.    Insurance

        
          
            	

                  	(a)	
                    During the Agreement Term, the Charterers shall at their expense keep the Vessel insured against fire and usual marine risks (including hull and machinery
                        and excess risks), oil pollution liability risks, war and protection and indemnity risks (and any risks against which it is compulsory to insure for the operation for the Vessel) in US Dollars and in such market and on such terms as
                        the Owners and the Finance Parties (if any) shall in writing approve (such approval shall not be unreasonably withheld).

                  

          

        

        
          
            	

                  	(b)	
                    Such insurances shall be arranged by the Charterers to protect the interests of the Owners, the Charterers and (if any) the mortgagee of the Vessel or
                        such other relevant Finance Party, and the Charterers shall be at liberty to protect under such insurances the interests of any Approved Manager.

                  

          

        

        
          
            	

                  	(c)	
                    Insurance policies shall cover the Owners, the Charterers and (if any) the Finance Parties according to their respective interests. Subject to the
                        approval of the Owners (acting on the instructions or with the approval of the Finance Parties (in each case if applicable)) and the insurers, the Charterers shall effect all insured repairs and shall undertake settlement and
                        reimbursement from the insurers of all costs in connection with such repairs as well as insured charges, expenses and liabilities to the extent of coverage under the insurances herein provided for.

                  

          

        

        
          
            	

                  	(d)	
                    The Charterers shall also remain responsible for and effect repairs and settlement of costs and expenses incurred thereby in respect of all other repairs
                        not covered by the insurances and/or not exceeding any possible franchise(s) or deductibles provided for in the insurances.

                  

          

        

        
          
            	

                  	(e)	
                    The Charterers shall arrange that, at any time during the Agreement Term, the hull and machinery and war risks insurance shall be in an amount not less
                        than the greater of:

                  

          

        

        
          
            	

                  	(i)	
                    an amount which equals one hundred and twenty per cent (120%) of the Cost Balance; and

                  

          

        

        
          
            	

                  	(ii)	
                    the current Market Value of the Vessel.

                  

          

        

        
          34

          
            

        

        

        

        
          
            	

                  	(f)	
                    The terms of the hull and machinery insurance and the identity of the insurers shall be acceptable to the Owners and (if any) the Finance Parties. The
                        Vessel shall be entered in a P&I Club which is a member of the International Group of Protection and Indemnity Association (or if the International Group of Protection and Indemnity Association ceases to exist, such P&I Club
                        as may be approved by the Owners and (if any) the Finance Parties) on customary terms and shall be covered against liability for pollution claims in an amount not less than US Dollars one billion (US$1,000,000,000). The P&I
                        cover shall be placed with a P&I Club acceptable to the Owners and (if any) the Finance Parties. All insurances shall include customary protection in favour of the Owners and (if any) the Finance Parties as notice of
                        cancellation and exclusion from liability for premiums or calls. The insurance policies or cover notes for the hull and machinery insurance shall name the Owners as co- assured, endorsing its rights and interests. The Owners shall
                        be entered as a member for the P&I cover and war risks insurance.

                  

          

        

        
          
            	

                  	(g)	
                    The Charterers:

                  

          

        

        
          
            	

                  	(i)	
                    undertake to place the Insurances in such markets, in such currency, on such terms and conditions, and with such brokers, underwriters and associations as
                        the Owners and, if applicable, the Finance Parties shall have previously approved in writing; and

                  

          

        

        
          
            	

                  	(ii)	
                    shall not alter the terms of any of the Insurances nor allow any person (except the Approved Manager) to be co-assured under any of the Insurances without
                        the prior written consent of the Owners and, if applicable, the Finance Parties, and will supply the Owners and, if applicable, the Finance Parties from time to time on request with such information as the Owners and, if applicable,
                        any Finance Party may in their discretion require with regard to the Insurances and the brokers, underwriters or associations through or with which the Insurances are placed.

                  

          

        

        
          
            	

                  	(h)	
                    The Charterers undertake duly and punctually to pay all premiums, calls and contributions, and all other sums at any time payable in connection with the
                        Insurances, and, at their own expense, to arrange and provide any guarantees from time to time required by any protection and indemnity or war risks association. Upon request, the Charterers shall provide the Owners and/or such
                        Finance Party with (i) copies of all invoices issued by the brokers, underwriters or associations in respect of such premiums calls, contributions and other sums, and (ii) evidence satisfactory to the Owners and/or such Finance
                        Party that such premiums, calls, contributions and other sums have been duly and punctually paid; that any such guarantees have been duly given; and that all declarations and notices required by the terms of any of the Insurances to
                        be made or given by or on behalf of the Charterers to brokers, underwriters or associations have been duly and punctually made or given.

                  

          

        

        
          
            	

                  	(i)	
                    The Charterers will comply in all respects with all terms and conditions of the Insurances and will make all such declarations to brokers, underwriters
                        and associations as may be required to enable the Vessel to operate in accordance with the terms and conditions of the Insurances. The Charterers will not do, nor permit to be done, any act, nor make, nor permit to be made, any
                        omission, as a result of which any of the Insurances may become liable to be suspended, cancelled or avoided, or may become unenforceable, or as a result of which any sums payable under or in connection with any of the Insurances
                        may be reduced or become liable

                  

          

        

        
          35

          
            

        

        

        

        to be repaid or rescinded in whole or in part. In particular, but without limitation, the
            Charterers will not permit the Vessel to be employed other than in conformity with the Insurances without first taking out additional insurance cover in respect of that employment in all respects to the satisfaction of the Owners and, if
            applicable, the Finance Parties, and the Charterers will promptly notify the Owners and, if applicable, the Finance Parties of any new requirement imposed by any broker, underwriter or association in relation to any of the Insurances.

        
          
            	

                  	(j)	
                    The Charterers will endeavour and before the expiry of any of the Insurances renew them and shall as soon as reasonably thereafter (but in any event
                        within fifteen (15) days after the relevant renewals) give the Owners and, if applicable, the Finance Parties such details of those renewals as the Owners and, if applicable, the Finance Parties may require.

                  

          

        

        
          
            	

                  	(k)	
                    The Charterers shall deliver to the Owners and, if applicable, the Finance Parties certified copies (and, if required by the Owners and/or (if applicable)
                        any Finance Parties, the originals) of all policies, certificates of entry (endorsed with the appropriate loss payable clauses as may be required by the Owners and the Finance Parties from time to time) and other documents relating
                        to the Insurances (including, without limitation, receipts for premiums, calls or contributions) and shall procure that letters of undertaking in such form as the Owners and, if applicable, the Finance Parties may approve shall be
                        issued to the Owners and, if applicable, the Finance Parties by the brokers through which the Insurances are placed (or, in the case of protection and indemnity or war risks associations, by their managers). If the Vessel is at any
                        time during the Agreement Term insured under any form of fleet cover, the Charterers shall procure that those letters of undertaking contain confirmation that the brokers, underwriters or association (as the case may be) will not
                        set off claims relating to the Vessel against premiums, calls or contributions in respect of any other vessel or other insurance, and that the insurance cover of the Vessel will not be cancelled by reason of non-payment of premiums,
                        calls or contributions relating to any other vessel or other insurance. Failing receipt of those confirmations, the Charterers will instruct the brokers, underwriters or association concerned to issue a separate policy or
                        certificate for the Vessel in the sole name of the Charterers or of the Charterers’ brokers as agents for the Charterers.

                  

          

        

        
          
            	

                  	(l)	
                    Upon the Owners’ request, the Charterers shall provide the Owners and, if applicable, the Finance Parties with full information available to the
                        Charterers regarding any casualty or other accident or damage to the Vessel, including, without limitation, any communication with all parties involved in case of a claim under any of the Insurances.

                  

          

        

        
          
            	

                  	(m)	
                    The Charterers agree that, at any time after the occurrence of a Termination Event which is continuing, the Owners and, if applicable, the Finance Parties
                        shall be entitled to collect, sue for, recover and give a good discharge for all claims in respect of any of the Insurances; to pay collecting brokers the customary commission on all sums collected in respect of those claims; to
                        compromise all such claims or refer them to arbitration or any other form of judicial or non-judicial determination; and otherwise to deal with such claims in such manner as the Owners and, if applicable, the Finance Parties shall
                        in their discretion think fit.

                  

          

        

        
          36

          
            

        

        

        

        
          
            	

                  	(n)	
                    Whether or not a Termination Event shall have occurred, the proceeds of any claim under any of the Insurances in respect of a Total Loss shall be paid and
                        applied in accordance with Clause 57 (Total Loss).

                  

          

        

        
          
            	

                  	(o)	
                    In the event of any claim in respect of any of the Insurances (other than in respect of a Total Loss), if the Charterers shall fail to reach agreement
                        with any of the brokers, underwriters or associations for the immediate restoration of the Vessel, or for payment to third parties, within such time as the Owners and, if applicable, the Finance Parties may stipulate, the Owners
                        and, if applicable, the Finance Parties shall be entitled to require payment to itself. In the event of any dispute arising between the Charterers and any broker, underwriter or association with respect to any obligation to make any
                        payment to the Charterers or to the Owners and/or (if applicable) the Finance Parties under or in connection with any of the Insurances, or with respect to the amount of any such payment, the Owners and/or (if applicable) the
                        Finance Parties shall be entitled to settle that dispute directly with the broker, underwriter or association concerned. Any such settlement shall be binding on the Charterers.

                  

          

        

        (p)

        
          
            	

                  	(i)	
                    The Owners agree that any amounts which may become due under any protection and indemnity entry or insurance shall be paid to the Charterers to reimburse
                        the Charterers for, and in discharge of, the loss, damage or expense in respect of which they shall have become due, unless, at the time the amount in question becomes due, a Termination Event shall have occurred and is continuing,
                        in which event the Owners shall be entitled to receive the amounts in question and to apply them either in reduction of the Early Termination Amount owed by the Charterers pursuant to paragraph (d) of Clause 51 (Termination Events) or, at the option of the Owners, to the discharge of the liability in respect of which they were paid.

                  

          

        

        
          
            	

                  	(ii)	
                    Without prejudice to the foregoing, all other claims in relation to the Insurances (other than in respect of a Total Loss), shall, unless and until the
                        occurrence of a Termination Event which is continuing, in which event all claims under the relevant policy shall be payable directly to the Owners, be payable as follows:

                  

          

        

        
          
            	

                  	(A)	
                    a claim in respect of any one casualty where the aggregate claim against all insurers does not exceed the Major Casualty Amount, prior to adjustment for
                        any franchise or deductible under the terms of the relevant policy, shall be paid directly to the Charterers (as agent for the Owners) for the repair, salvage or other charges involved or as a reimbursement if the Charterers fully
                        repaired the damage to the satisfaction of the Owners and paid all of the salvage or other charges;

                  

          

        

        
          
            	

                  	(B)	
                    a claim in respect of any one casualty where the aggregate claim against all insurers exceeds the Major Casualty Amount prior to adjustment for any
                        franchise or deductible under the terms of the relevant policy shall be payable directly to the Owners unless the Owners have, by prior written consent, agreed for such claim to be paid to the Charterers as and when the Vessel is
                        restored to her

                  

          

        

        
          37

          
            

        

        

        

        former state and condition and the liability in respect of which the insurance loss is payable
            is discharged, and provided that the insurers may with such consent make payment on account of repairs in the course of being effected.

        
          
            	

                  	(q)	
                    The Charterers shall not settle, compromise or abandon any claim under or in connection with any of the Insurances (other than a claim of less than the
                        Major Casualty Amount arising other than from a Total Loss) without the prior written consent of the Owners and, if applicable, the Finance Parties.

                  

          

        

        
          
            	

                  	(r)	
                    If the Charterers fail to effect or keep in force the Insurances, the Owners may (but shall not be obliged to) effect and/or keep in force such insurances
                        on the Vessel (including, without limitation, any freight, demurrage and defence cover) and such entries in protection and indemnity or war risks associations as the Owners in their discretion consider desirable, and the Owners may
                        (but shall not be obliged to) pay any unpaid premiums, calls or contributions. The Charterers will reimburse the Owners from time to time on demand for all such premiums, calls or contributions paid by the Owners, together with
                        interest calculated in accordance with paragraph (r) of Clause 41 (Hire) from the date of payment by the Owners until the date
                        of reimbursement.

                  

          

        

        
          
            	

                  	(s)	
                    The Charterers shall comply strictly with the requirements of any legislation relating to pollution or protection of the environment which may from time
                        to time be applicable to the Vessel in any jurisdiction in which the Vessel shall trade and in particular the Charterers shall comply strictly with the requirements of the United States Oil Pollution Act 1990 (the “Act”) if the Vessel is to trade in the United States of America and Exclusive Economic Zone (as defined in the Act). Before any such
                        trade is commenced and during the entire period during which such trade is carried on, the Charterers shall:

                  

          

        

        
          
            	

                  	(i)	
                    pay any additional premiums required to maintain protection and indemnity cover for oil pollution up to the limit available to the Charterers for the
                        Vessel in the market; and

                  

          

        

        
          
            	

                  	(ii)	
                    make all such quarterly or other voyage declarations as may from time to time be required by the Vessel’s protection and indemnity association in order to
                        maintain such cover, and promptly deliver to the Owners and, if applicable, the Finance Parties copies of such declarations; and

                  

          

        

        
          
            	

                  	(iii)	
                    submit the Vessel to such additional periodic, classification, structural or other surveys which may be required by the Vessel’s protection and indemnity
                        insurers to maintain cover for such trade and promptly deliver to the Owners and, if applicable, the Finance Parties copies of reports made in respect of such surveys; and

                  

          

        

        
          
            	

                  	(iv)	
                    implement any recommendations contained in the reports issued following the surveys referred to in sub-paragraph 42(s)(iii) above within the relevant time
                        limits, and provide evidence satisfactory to the Owners and, if applicable, the Finance Parties that the protection and indemnity insurers are satisfied that this has been done; and

                  

          

        

        
          38

          
            

        

        

        

        
          
            	

                  	(v)	
                    in addition to the foregoing (if such trade is in the United States of America and Exclusive Economic Zone):

                  

          

        

        
          
            	

                  	(A)	
                    obtain and retain a certificate of financial responsibility under the Act in form and substance satisfactory to the United States Coast Guard and provide
                        the Owners with evidence of the same;

                  

          

        

        
          
            	

                  	(B)	
                    procure that the protection and indemnity insurances do not contain a US Trading Exclusion Clause or any other analogous provision and provide the Owners
                        with evidence that this is so; and

                  

          

        

        
          
            	

                  	(C)	
                    comply strictly with any operational or structural regulations issued from time to time by any relevant authorities under the Act so that at all times the
                        Vessel falls within the provisions which limit strict liability under the Act for oil pollution.

                  

          

        

        
          
            	

                  	(t)	
                    The Owners shall be at liberty to, in relation to the Vessel, take out Lessor’s or Innocent Owners’ Interest Insurance and Lessor’s Additional Peril
                        (Pollution) insurance on such terms and conditions as the Owners may from time to time decide. The Charterers shall from time to time upon the Owners’ demand reimburse the Owners for all costs, premiums and expenses paid or incurred
                        by the Owners in connection with such Lessor’s or Innocent Owners’ Interest Insurance and Lessor’s Additional Peril (Pollution) insurance, but only to the extent corresponding to each of the Lessor’s or Owners’ Interest Insurance or
                        Lessor’s Additional Peril (Pollution) insurance for an amount not exceeding one hundred and twenty per cent (120%) of the then current Cost Balance.

                  

          

        

        
          
            	

                  	(u)	
                    Any Finance Party shall be at liberty to take out a Mortgagees’ Interest Insurance in relation to the Vessel on such terms and conditions as that Finance
                        Party may from time to time decide. The Owners shall upon the Charterers’ request and upon receipt of such information from the Finance Party, inform the Charterers of such costs, premiums and expenses required and prior to taking
                        out the Mortgagees’ Interest Insurance. The Charterers shall from time to time upon the Owners’ demand reimburse the Owners for all costs, premiums and expenses paid or incurred by the Owners or that Finance Party in connection with
                        such Mortgagees’ Interest Insurance, but only to the extent corresponding to a Mortgagee’s Interest Insurance for an amount not exceeding one hundred and twenty per cent. (120%) of the amount then outstanding under any loan made
                        available by the Finance Parties pursuant to any Finance Documents.

                  

          

        

        43.   Redelivery

        In the event that the Charterers have not exercised the purchase option
            pursuant to Clause 55 (Purchase Option and transfer of title) at the end of the Charter Period, or upon the occurrence of any Termination
            Event which is continuing, the Owners decide to retake possession of the Vessel pursuant to paragraph (g) of Clause 51 (Termination Events),
            then the Charterers shall, at their own cost and expense, redeliver or cause to be redelivered the Vessel to the Owners at a safe, ice free port reasonably nominated solely by the Owners where the Vessel would be afloat at all times in a ready
            safe berth or anchorage, in accordance with Clauses 43 (Redelivery), 44 (Redelivery conditions) and 45 (Diver’s inspection at redelivery).

        
          39

          
            

        

        

        

        44.    Redelivery conditions

        
          
            	

                  	(a)	
                    In addition to what has been agreed in Clauses 43 (Redelivery)
                        (Part II) and 43 (Redelivery), the condition of the Vessel shall at redelivery be as follows:

                  

          

        

        
          
            	

                  	(i)	
                    the Vessel shall be free of any class and statutory recommendations affecting its trading certificates;

                  

          

        

        
          
            	

                  	(ii)	
                    the Vessel must be redelivered with all equipment and spares or replacement items listed in the delivery inventory carried out pursuant to Clause 9 (Inventories, Oil and Stores) (Part II) and any spare parts on board or on order for any equipment installed on the Vessel following
                        delivery (provided that, any such items which are on lease or hire purchase and which are necessary to stay on board the Vessel in order that the Vessel may comply with the requisite requirements of the Classification Society and
                        other applicable requirements for national and/or international trading requirements shall be replaced with items of an equivalent standard and condition fair wear and tear excepted)); all records, logs, plans, operating manuals and
                        drawings, spare parts onboard shall be included at the time of redelivery in connection with a transfer of the Vessel or such other items as are then in the possession of the Charterers shall be delivered to the Owners;

                  

          

        

        
          
            	

                  	(iii)	
                    the Vessel must be redelivered with all national and international trading certificates and hull/machinery survey positions for both class and statutory
                        surveys free of any overdue recommendation and qualifications valid and un- extended for a period of at least six (6) months beyond the redelivery date;

                  

          

        

        
          
            	

                  	(iv)	
                    all of the Vessel’s ballast tank coatings to be maintained in “Fair” (as such term (or its equivalent) may be defined and/or interpreted in the relevant
                        survey report) condition as appropriate for the Vessel’s age at the time of redelivery, fair wear and tear excepted;

                  

          

        

        
          
            	

                  	(v)	
                    the Vessel shall have not have any outstanding flag or class surveys or inspections due within six (6) months after the date of redelivery and have its
                        continuous survey system up to date;

                  

          

        

        
          
            	

                  	(vi)	
                    the Vessel must be re-delivered with accommodation and common spaces for crew and officers substantially in the same condition as at the Delivery Date,
                        free of damage over and above fair wear and tear, clean and free of infestation and odours; with cargo spaces generally fit to carry the cargoes originally designed and intended for the Vessel; with main propulsion equipment,
                        auxiliary equipment, cargo handling equipment, navigational equipment, etc., in such operating condition as provided for in this Charter fair wear and tear excepted;

                  

          

        

        
          
            	

                  	(vii)	
                    the Vessel shall be free and clear of all liens other than those created by or on the instruction of the Owners;

                  

          

        

        
          
            	

                  	(viii)	
                    the condition of the cargo holds to be in accordance with the maintenance regime undertaken by the Charterers during the Charter Period since delivery
                        with allowance for legitimate cargoes carried since the last major maintenance programme;

                  

          

        

        
          40

          
            

        

        

        

        
          
            	

                  	(ix)	
                    at the costs and expenses of the Charterers, a final joint report from the surveyors appointed by the Owners and the Charterers respectively shall be
                        carried out as to the condition of the Vessel and a list of agreed deficiencies if any shall be drawn up;

                  

          

        

        
          
            	

                  	(x)	
                    the anti-fouling coating system applied at the last scheduled dry-docking shall be in accordance with prevailing regulations at the time of application;

                  

          

        

        
          
            	

                  	(xi)	
                    the funnel markings and name (unless being maintained by the Owners following redelivery) shall be painted out by the Charterers; and

                  

          

        

        
          
            	

                  	(xii)	
                    recently taken lube oil samples for all major machinery shall be made available within one (1) week of redelivery and results forwarded to Owners’
                        technical management for review.

                  

          

        

        
          
            	

                  	(b)	
                    At redelivery, the Charterers shall ensure that the Vessel shall meet the following performance levels (which where relevant shall be determined by
                        reference to the Vessel’s log books):

                  

          

        

        
          
            	

                  	(i)	
                    all equipment controlling the habitability of the accommodation and service areas to be in proper working order, fair wear and tear excepted; and

                  

          

        

        
          
            	

                  	(ii)	
                    available deadweight to be within one per cent (1%) of that achieved at delivery (as the same may be adjusted as a result of any upgrading, modifications,
                        alterations or repairs of the Vessel carried out in accordance with this Charter (such adjustment to be agreed between the Owners and Charterers at the time such work is to be undertaken).

                  

          

        

        
          
            	

                  	(c)	
                    The Owners and Charterers shall each appoint (at the Charterers’ cost and expense) surveyors for the purpose of determining and agreeing in writing the
                        condition of the Vessel at redelivery.

                  

          

        

        
          
            	

                  	(d)	
                    If the Vessel is not in the condition or does not meet the performance criteria required by this Clause 44, a list of deficiencies together with the costs
                        of repairing/remedying such deficiencies shall be agreed by the respective surveyors.

                  

          

        

        
          
            	

                  	(e)	
                    The Charterers shall be obliged to repair any class items restricting the operation or trading of the Vessel prior to redelivery.

                  

          

        

        
          
            	

                  	(f)	
                    The Charterers shall be obliged to repair/remedy all such other deficiencies as are necessary to put the Vessel into the return condition required by this
                        Clause 44.

                  

          

        

        
          
            	

                  	(g)	
                    Until such time as any compensatory amount in respect of any repairs/remedial work outstanding as at redelivery has been paid in accordance with the terms
                        of this Charter and the Vessel has been redelivered, the Charterers shall continue to pay the Hire in accordance with the terms of this Charter.

                  

          

        

        45.    Diver’s inspection at redelivery

        
          
            	

                  	(a)	
                    Unless the Vessel is returned in dry-dock, a diver’s inspection is required to be performed at the time of redelivery.

                  

          

        

        
          41

          
            

        

        

        

        
          
            	

                  	(b)	
                    The Charterers shall, at the written request of the Owners, arrange at the Charterers’ time and expense for an underwater inspection by a diver approved
                        by the Classification Society immediately prior to the redelivery.

                  

          

        

        
          
            	

                  	(c)	
                    (c) A video film of the inspection shall be made. The extent of the inspection and the conditions under which it is performed shall be to the satisfaction
                        of the Classification Society.

                  

          

        

        
          
            	

                  	(d)	
                    If damage to the underwater parts is found affecting the Vessel’s class, the Charterers shall arrange, at their time and costs, for the Vessel to be
                        dry-docked and repairs carried out to the satisfaction of the Classification Society and if damage to the underwater parts is found but such damage does not affect the Vessel’s class and the Classification Society approves the
                        postponement of repair of such damage until the next regular dry-docking of the Vessel, the Owners may (acting reasonably) agree that such repairs to be done after redelivery without immediate dry-docking provided that (i) the
                        Charterer undertakes to indemnify the Owners any costs and expenses that the Owners may incur in repairing the damage to the satisfaction of the Classification Society and (ii) a deposit sufficient to cover the estimated repair cost
                        has been paid to the Owners.

                  

          

        

        
          
            	

                  	(e)	
                    If the conditions at the port of redelivery are unsuitable for such diver’s inspection, the Charterers shall take the Vessel (in Owners’ time but at
                        Charterers’ expense) to a suitable alternative place nearest to the redelivery port unless an alternative solution is agreed.

                  

          

        

        All costs relating to any diver’s inspection shall be borne by the Charterers.

        46.    Owners’ mortgage

        
          
            	

                  	(a)	
                    The Charterers:

                  

          

        

        
          
            	

                  	(i)	
                    acknowledge that the Owners, on the basis that the Owners comply with paragraph(b)(i) below, are entitled and do intend to enter or have entered into
                        certain funding arrangements with the Finance Parties in order to finance part of the Actual Owners’ Cost, which funding arrangements may be secured, inter alia, by ship mortgage(s) over the Vessel and (along with other related
                        matters) the relevant Finance Documents;

                  

          

        

        
          
            	

                  	(ii)	
                    consent to any assignment of the Owners’ rights, title and interest in and to the Insurances, Sub-Charterers’ Insurances, Earnings, Sub-Charterers’
                        Earnings, Requisition Compensation and Sub-Charterers’ Requisition Compensation (including the Owners’ rights, title and interest in and to such property as assigned by the Charterers and/or the Sub-Charterers (as applicable) in
                        favour of the Owners pursuant to the Charterers’ Assignment and/or the Sub-Charterers’ Assignment) and any Transaction Document to which it is a party in favour of the Finance Parties pursuant to the relevant Finance Documents
                        subject to the Financing Party entering into a Quiet Enjoyment Letter pursuant to paragraph (b)(i) below; and

                  

          

        

        
          
            	

                  	(iii)	
                    without limiting the generality of paragraph (n) of Clause 49 (Charterers’ undertakings), undertake to execute, provide or procure the execution or provision (as the case may be) of such further reasonably information or

                  

          

        

        
          42

          
            

        

        

        

        document as are necessary to effect the assignment referred to in paragraph (ii) above.

        
          
            	

                  	(b)	
                    The Owners undertake that:

                  

          

        

        
          
            	

                  	(i)	
                    in the absence of any Termination Event which is continuing, the Owners shall procure that the Finance Party which will be a mortgagee of the Vessel shall
                        execute in favour of the Charterers a Quiet Enjoyment Letter;

                  

          

        

        
          
            	

                  	(ii)	
                    if any Sub-Charterers who are chartering the Vessel on a bareboat basis or on a time charter fixed for a period exceeding twenty-four (24) months from the
                        Charterers as disponent owner so requests, and provided that:

                  

          

        

        
          
            	

                  	(A)	
                    the Charterers have executed an assignment (in form and substance acceptable to the Owners) by way of security of the Charterers’ rights, title and
                        interests in and to the relevant Sub-Charter;

                  

          

        

        
          
            	

                  	(B)	
                    the Sub-Charterers have executed a Sub-Charterers’ Assignment;

                  

          

        

        
          
            	

                  	(C)	
                    to the extent that any prior written consent from such Sub-Charterers is required before the Charterers may assign by way of security referred to in
                        sub-paragraph (b)(ii)(A) above, the Charterers have procured to be delivered to the Owners evidence that such Sub- Charterers have granted such prior written consent;

                  

          

        

        
          
            	

                  	(D)	
                    the Charterers have delivered to the Owners all documents required by such assignment referred to in this Clause 46(b)(ii) including, without limitation,
                        all other notices of assignment and used reasonable endeavours to procure delivery of any other acknowledgements thereof (each in form and substance acceptable to the Owners (acting reasonably), including cure rights in favour of
                        the Owners; and

                  

          

        

        
          
            	

                  	(E)	
                    the Charterers have procured to be delivered to the Owners any relevant legal opinions (in form and substance acceptable to the Owners) reasonably
                        required by the Owners in relation to such assignment and its execution,

                  

          

        

        the Owners will (i) execute in favour of such Sub-Charterers a Sub-Charter Quiet Enjoyment
            Letter and (ii) (in the case of the Sub-Charter being a bareboat charter) procure that the Finance Party which will be a mortgagee of the Vessel shall execute in favour of the Sub-Charterers a Sub-Charter Quiet Enjoyment Letter and (in the case
            of the Sub-Charter being a time charter fixed for a period exceeding forty-eight (48) months, with a Sub-Charter hire rate higher than the rate of Hire in the BBC and provided that all the “know your client” requirements of the relevant
            mortgagee are satisfied) use its best endeavours to procure such mortgagee to execute in favour of the Sub- Charterers a Sub-Charter Quiet Enjoyment Letter).

        All costs properly incurred by the Owners in respect of any action taken by the Owners under
            sub-paragraph (ii) above will be borne by the Charterers.

        
          43

          
            

        

        

        

        
          
            	

                  	(c)	
                    Without prejudice to the foregoing, the Owners’ may assign or transfer their rights under this Charter without the prior written consent of the
                        Charterers.

                  

          

        

        47.    Transport documents

        The Charterers shall use their standard documents, waybills and conditions of carriage in the
            carriage of goods. Such documents, waybills and standard conditions shall comply with compulsory applicable legislation.

        48.    Charterers’ representations and warranties

        
          
            	

                  	(a)	
                    The Charterers represent and warrant to the Owners on the date of this Charter and (by reference to the facts and circumstances then pertaining) on the
                        Delivery Date and each Hire Payment Date as follows (except that (1) the representation and warranty contained in paragraph (vii) and (xxiv) below shall only be made on the date of this Charter and on the Delivery Date, and (2) the
                        representations and warranties in paragraph (ii) below shall only be made on the date of this Charter):

                  

          

        

        
          
            	

                  	(i)	
                    Status and due authorisation: each

                        Obligor is a corporation, limited partnership or limited liability company duly incorporated or formed under the laws of its jurisdiction of incorporation or formation (as the case may be) with power to enter into the Transaction
                        Documents and the Project Documents (to which it is a party) and to exercise its rights and perform its obligations under the Transaction Documents and the Project Documents (to which it is a party) and all corporate and other
                        action required to authorise its execution of the Transaction Documents and the Project documents (to which it is a party) and its performance of its obligations thereunder has been duly taken;

                  

          

        

        
          
            	

                  	(ii)	
                    No deductions or withholding: under

                        the laws of the Obligors’ respective jurisdictions of incorporation or formation in force at the date hereof, none of the Obligors will be required to make any deduction or withholding from any payment it may make under any of the
                        Transaction Documents;

                  

          

        

        
          
            	

                  	(iii)	
                    Claims pari passu: under the
                        laws of the Obligors’ respective jurisdictions of incorporation or formation in force at the date hereof, the payment obligations of each Obligor under each Transaction Document to which it is a party, rank at least pari passu with the claims of all other unsecured and unsubordinated creditors of such Obligor save for any obligations which are
                        preferred solely by any bankruptcy, insolvency or other similar laws of general application;

                  

          

        

        
          
            	

                  	(iv)	
                    No Immunity: in any
                        proceedings taken in any of the Obligors’ respective jurisdictions of incorporation or formation in relation to any of the Transaction Documents, none of the Obligors will be entitled to claim for itself or any of its assets
                        immunity from suit, execution, attachment or other legal process;

                  

          

        

        
          
            	

                  	(v)	
                    Governing law and judgments: in any proceedings taken in any of the Obligors’ jurisdiction of incorporation or formation in relation to any of the Transaction
                        Documents in which there is an express choice of the law of a particular country as the governing law thereof, that choice of law and any judgment or (if applicable) arbitral award obtained in that country will be recognised and
                        enforced;

                  

          

        

        
          44

          
            

        

        

        

        
          
            	

                  	(vi)	
                    Validity and admissibility in
                          evidence: as at the date hereof, all acts, conditions and things required to be done, fulfilled and performed in order (A) to enable each of the Obligors lawfully to enter into, exercise its rights under and perform and
                        comply with the obligations expressed to be assumed by it in the Transaction Documents and the Project Documents to which it is a party, (B) to ensure that the obligations expressed to be assumed by each of the Obligors in the
                        Transaction Documents and the Project Documents are legal, valid and binding, and (C) to make the Transaction Documents and the Project Documents to which it is a party admissible in evidence in the jurisdictions of incorporation or
                        formation of each of the Obligors, have been done, fulfilled and performed;

                  

          

        

        
          
            	

                  	(vii)	
                    No filing or stamp taxes: under

                        the laws of the Obligors’ respective jurisdictions of incorporation or formation in force at the date hereof, it is not necessary that any of the Transaction Documents to which it is a party be filed, recorded or enrolled with any
                        court or other authority in its jurisdiction of incorporation or formation (other than the Registrar of Companies for England and Wales or the relevant maritime registry, to the extent applicable) or that any stamp, registration or
                        similar tax be paid on or in relation to any of the Transaction Document;

                  

          

        

        
          
            	

                  	(viii)	
                    Binding obligations: the
                        obligations expressed to be assumed by each of the Obligors in the Transaction Documents and the Project Documents to which it is a party are legal and valid obligations, binding on each of them in accordance with the terms of such
                        Transaction Documents and the Project Documents and no limit on any of their powers will be exceeded as a result of the borrowings, granting of security or giving of guarantees contemplated by such Transaction Documents and the
                        Project Documents or the performance by any of them of any of their obligations thereunder;

                  

          

        

        
          
            	

                  	(ix)	
                    No misleading information: to
                        the best of its knowledge, any factual information provided by any Obligor to the Owners in connection with the Transaction Documents was true and accurate in all material respects as at the date it was provided and is not
                        misleading in any material respect;

                  

          

        

        
          
            	

                  	(x)	
                    No winding-up: none of the
                        Obligors has taken any corporate, limited liability company or limited partnership action nor have any other steps been taken or legal proceedings been started or (to the best of the Charterers’ knowledge and belief) threatened
                        against any Obligor for its winding-up, dissolution, administration or reorganisation or for the appointment of a receiver, administrator, administrative receiver, trustee or similar officer of it or of any or all of its assets or
                        revenues which might have a Material Adverse Effect;

                  

          

        

        
          
            	

                  	(xi)	
                    Solvency:

                  

          

        

        
          
            	

                  	(A)	
                    None of the Obligors is unable, or admits or has admitted its inability, to pay its debts or has suspended making payments in respect of any of its debts;

                  

          

        

        
          
            	

                  	(B)	
                    None of the Obligors by reason of actual or anticipated financial difficulties, has commenced, or intends to commence, negotiations

                  

          

        

        
          45

          
            

        

        

        

        with one or more of its creditors with a view to rescheduling any of its indebtedness.

        
          
            	

                  	(C)	
                    The value of the assets of each Obligor is not less than the liabilities of such Obligor (as the case may be) (taking into account contingent and
                        prospective liabilities).

                  

          

        

        
          
            	

                  	(D)	
                    No moratorium has been, declared in respect of any indebtedness of any Obligor;

                  

          

        

        
          
            	

                  	(xii)	
                    No material defaults:

                  

          

        

        
          
            	

                  	(A)	
                    Without prejudice to paragraph (B) below, none of the Obligors are in breach of or in default under any agreement to which it is a party or which is
                        binding on it or any of its assets to an extent or in a manner which might have a Material Adverse Effect.

                  

          

        

        
          
            	

                  	(B)	
                    No Potential Termination Event or Termination Event is continuing or might reasonably be expected to result from each Obligor’s entry into and performance
                        of each Transaction Document to which such Obligor is a party;

                  

          

        

        
          
            	

                  	(xiii)	
                    No material proceedings: no
                        material action or administrative proceeding of or before any court, arbitral body or agency which is not covered by adequate insurance or which might have a Material Adverse Effect has been started;

                  

          

        

        
          
            	

                  	(xiv)	
                    Accounts: all financial
                        statements relating to the Charterers and/or the Charter Guarantors required to be delivered under paragraph (a) of Clause 49 (Charterers’

                        undertakings), were each prepared in accordance with GAAP, (in conjunction with the notes thereto) fairly represent the financial condition of the Charterers and/or the Charter Guarantors at the date as of which they were
                        prepared and the results of their operations during the financial period then ended;

                  

          

        

        
          
            	

                  	(xv)	
                    No obligation to create Security
                          Interest: the execution of the Transaction Documents by the Obligors and their exercise of their rights and performance of their obligations thereunder will not result in the existence of nor oblige any Obligor to create
                        any Security Interest over all or any of their present or future revenues or assets, other than pursuant to the Security Documents to which they are a party;

                  

          

        

        
          
            	

                  	(xvi)	
                    No breach: the execution of
                        the Transaction Documents and the Project Documents by each of the Obligors and their exercise of their rights and performance of their obligations under any of the Transaction Documents and the Project Documents to which they are a
                        party do not constitute and will not result in any breach of any agreement or treaty to which any of them is a party;

                  

          

        

        
          
            	

                  	(xvii)	
                    Security: each of the Obligors
                        is the legal and beneficial owner of all assets and other property which it purports to charge, mortgage, pledge, assign or otherwise secure pursuant to each Security Document and those Security

                  

          

        

        
          46

          
            

        

        

        

        Documents to which it is a party create and give rise to valid and effective security having the
            ranking expressed in those Security Documents;

        
          
            	

                  	(xviii)	
                    Necessary authorisations: the
                        Necessary Authorisations required by each Obligor are in full force and effect, and each Obligor is in compliance with the material provisions of each such Necessary Authorisation relating to it and, to the best of its knowledge,
                        none of the Necessary Authorisations relating to it are the subject of any pending or threatened proceedings or revocation;

                  

          

        

        
          
            	

                  	(xix)	
                    No money laundering etc: the
                        performance of the obligations of the Obligors under the Transaction Documents and the Project Documents, will be for the account of members of the respective Obligor(s) and will not involve any breach by any of them of any law or
                        regulatory measure relating to “money laundering” as defined in Article 1 of the Directive (2005/EC/60) of the European Parliament and of the Council of the European Communities;

                  

          

        

        
          
            	

                  	(xx)	
                    Disclosure of material facts: the

                        Charterers are not aware of any material facts or circumstances which have not been disclosed to the Owners and which might, if disclosed, have reasonably been expected to materially adversely affect the decision of a person
                        considering whether or not to enter into the Transaction Documents;

                  

          

        

        
          
            	

                  	(xxi)	
                    Environmental laws:

                  

          

        

        
          
            	

                  	(A)	
                    The Charterers are in compliance with paragraph (h) of Clause 49 (Charterers’ undertakings) and (to the best of its knowledge and belief) no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or is reasonably likely to have a
                        Material Adverse Effect. No Environmental Claim has been commenced or (to the best of the Charterers’
                        knowledge and belief) is threatened against the Charterers where that claim has or is reasonably likely, if determined against the Charterers, to have a Material Adverse Effect;

                  

          

        

        
          
            	

                  	(xxii)	
                    Taxation

                  

          

        

        
          
            	

                  	(A)	
                    No Obligor is materially overdue in the filing of any Tax returns and no Obligor overdue in the payment of any amount in respect of Tax of US Dollars One
                        Million (US$1,000,000) (or its equivalent in any other currency) or more, save in the case of Taxes which are being contested in good faith.

                  

          

        

        
          
            	

                  	(B)	
                    As far as the Charterers are aware, each of the Obligors is resident for Tax purposes only in the jurisdiction of its incorporation;

                  

          

        

        
          
            	

                  	(xxiii)	
                    No Restricted Party: no
                        Obligor is a Restricted Party nor has any Obligor or any of their respective directors, officers or employees or any person acting on their behalf received notice or are aware of any claim, action, suit, proceeding or investigation
                        against any of them with respect to Sanctions by a Sanctions Authority;

                  

          

        

        
          
            	

                  	(xxiv)	
                    No Material Adverse Effect: no
                        event or circumstance has occurred which has a Material Adverse Effect;

                  

          

        

        
          47

          
            

        

        

        

        

        

        
          
            	

                  	(xxv)	
                    Building Contract: no party is
                        in a material default under the Building Contract; and

                  

          

        

        
          
            	

                  	(xxvi)	
                    Status of Project Documents: the

                        copies of the Project Documents delivered to the Owners are true and complete copies. The Project Documents constitute legal, valid, binding and enforceable obligations of the parties to them in accordance with their respective
                        terms. No amendments or additions to the Project Documents have been agreed nor has any party to any Project Document waived any of its respective rights under that Project Document (except as those notified to the Owners in writing
                        and, if consent of the Owners are required pursuant to this Charter, as consented to by the Owners).

                  

          

        

        
          
            	

                  	(b)	
                    The representation and warranties of the Charterers in this Clause 48 are subject to: (i)

                  

          

        

        the principle that equitable remedies are remedies which may be granted or refused at the
            discretion of the court;

        
          
            	

                  	(ii)	
                    the limitation of enforcement by laws relating to bankruptcy, insolvency, liquidation, reorganisation, court schemes, moratoria, administration and other
                        laws generally affecting or limiting the rights of creditors;

                  

          

        

        
          
            	

                  	(iii)	
                    the time barring of claims under any applicable limitation acts;

                  

          

        

        
          
            	

                  	(iv)	
                    the possibility that a court may strike out provisions for a contract as being invalid for reasons of oppression, undue influence or similar; and

                  

          

        

        
          
            	

                  	(v)	
                    any other reservations or qualifications of law expressed in any legal opinions obtained by the Owners in connection with the Transaction Documents.

                  

          

        

        49.    Charterers’ undertakings

        The undertaking and covenants in this Clause 49 remain in force for the duration of the Agreement
            Term.

        
          
            	

                  	(a)	
                    Financial statements: the
                        Charterers shall and shall procure Charter Guarantor 1 each supply to the Owners as soon as the same become available, but in any event within:

                  

          

        

        
          
            	

                  	(i)	
                    one hundred and eighty (180) days after the end of each of its financial years, its audited consolidated financial statements for that financial year; and

                  

          

        

        
          
            	

                  	(ii)	
                    sixty (60) days after the end of each of each half-year, the unaudited consolidated financial statements for that period;

                  

          

        

        
          
            	

                  	(b)	
                    Requirements as to financial
                          statements: each set of financial statements delivered to the Owners under paragraph (a) of Clause 49 above in relation to the Charterers and Charter Guarantor 1 (each a “Notifying Party”) shall be:

                  

          

        

        
          
            	

                  	(i)	
                    certified by an authorised signatory of the relevant Notifying Party as fairly representing its financial condition as at the date as at which those
                        financial statements were drawn up; and

                  

          

        

        
          
            	

                  	(ii)	
                    prepared in accordance with GAAP.

                  

          

        

        
          48

          
            

        

        

        

        
          
            	

                  	(c)	
                    Information: the Charterers
                        shall supply to the Owners:

                  

          

        

        
          
            	

                  	(i)	
                    promptly upon becoming aware of them, details of any material litigation, arbitration or administrative proceedings which are current, threatened or
                        pending against the Charterers or the Charter Guarantors, and which, if adversely determined, are reasonably likely to have a Material Adverse Effect; and

                  

          

        

        
          
            	

                  	(ii)	
                    promptly, such further information regarding the financial condition, business and operations of the Charterers and the Charter Guarantors as the Owners
                        may reasonably request.

                  

          

        

        
          
            	

                  	(d)	
                    Maintenance of legal validity: the

                        Charterers shall comply with the terms of and do all that is necessary to maintain in full force and effect all Necessary Authorisations required in or by the laws and regulations of its jurisdiction of formation or incorporation
                        and all other applicable jurisdictions, to enable it lawfully to enter into and perform its obligations under the Transaction Documents and to ensure the legality, validity, enforceability or admissibility in evidence of the
                        Transaction Documents in its jurisdiction of incorporation or formation and all other applicable jurisdictions.

                  

          

        

        
          
            	

                  	(e)	
                    Notification of Potential Termination
                          Event: the Charterers shall promptly, upon becoming aware of the same, inform the Owners in writing of the occurrence of any Termination Event or Potential Termination Event (and the steps, if any, being taken to remedy
                        this) and, upon receipt of a written request to that effect from the Owners, confirm to the Owners that, save as previously notified to the Owners or as notified in such confirmation, no Termination Event or Potential Termination
                        Event is continuing or if a Termination Event or Potential Termination Event is continuing specifying the steps, if any, being taken to remedy it.

                  

          

        

        
          
            	

                  	(f)	
                    Claims pari passu: the
                        Charterers shall ensure that at all times the claims of the Owners against it under the Transaction Documents rank at least pari passu
                        with the claims of all its other unsecured and subordinated creditors save those whose claims are preferred by any bankruptcy, insolvency, liquidation, winding-up or other similar laws of general application.

                  

          

        

        
          
            	

                  	(g)	
                    Necessary Authorisations: without

                        prejudice to any specific provision of the Transaction Documents relating to a Necessary Authorisation, the Charterers shall (i) obtain, comply with and do all that is necessary to maintain in full force and effect all Necessary
                        Authorisations if a failure to do the same may cause a Material Adverse Effect; and (ii) promptly upon request, supply certified copies to the Owners of all Necessary Authorisations.

                  

          

        

        
          
            	

                  	(h)	
                    Compliance with applicable laws: the

                        Charterers shall comply with all applicable laws, including Environmental Laws, to which it may be subject (except as regards Restricted Parties to which paragraph (i) below applies, and anti-corruption and anti- bribery laws to
                        which paragraph (j) below applies) if a failure to do the same may have a Material Adverse Effect.

                  

          

        

        
          
            	

                  	(i)	
                    No dealings with Restricted Parties: the

                        Charterers shall not, and shall not permit or authorise any other person to, directly or indirectly, utilise or employ the Vessel or to use, lend, make payments of, contribute or otherwise make available, all or any

                  

          

        

        
          49

          
            

        

        

        

        part of the proceeds of any transaction(s) contemplated by the Transaction Documents to fund any
            trade, business or other activities:

        
          
            	

                  	(i)	
                    involving or for the benefit of any Restricted Party; and

                  

          

        

        
          
            	

                  	(ii)	
                    in any other manner that would reasonably be expected to result in any Obligor or the Owners or any Finance Party (if applicable) being in breach of any
                        Sanctions or become a Restricted Party.

                  

          

        

        
          
            	

                  	(j)	
                    Anti-corruption and anti-bribery laws:
                        the Charterers shall conduct its business in compliance with applicable anti-corruption and anti-bribery laws.

                  

          

        

        
          
            	

                  	(k)	
                    Environmental compliance: the
                        Charterers shall:

                  

          

        

        
          
            	

                  	(i)	
                    comply with any Environmental Law;

                  

          

        

        
          
            	

                  	(ii)	
                    obtain, maintain and ensure compliance with all requisite Environmental Approvals; and

                  

          

        

        
          
            	

                  	(iii)	
                    implement procedures to monitor compliance with and to prevent liability under any Environmental Law,

                  

          

        

        where failure to do so has or is reasonably likely to have a Material Adverse Effect.

        
          
            	

                  	(l)	
                    Environmental Claims: the
                        Charterers shall, promptly upon becoming aware of the same, inform the Owners in writing of:

                  

          

        

        
          
            	

                  	(i)	
                    any Environmental Claim against the Charterers which is current or pending; and

                  

          

        

        
          
            	

                  	(ii)	
                    any facts or circumstances which are reasonably likely to result in any Environmental Claim being commenced or threatened against the Charterers,

                  

          

        

        where the claim, if determined against the Charterers, has or is reasonably likely to have a
            Material Adverse Effect.

        
          
            	

                  	(m)	
                    Taxation

                  

          

        

        
          
            	

                  	(i)	
                    The Charterers shall pay and discharge any Tax imposed upon it or its assets within the time period allowed without incurring penalties unless and only to
                        the extent that:

                  

          

        

        
          
            	

                  	(A)	
                    such payment is being contested in good faith;

                  

          

        

        
          
            	

                  	(B)	
                    adequate reserves are being maintained for such Tax and the costs required to contest them have been disclosed in its latest financial statements; and

                  

          

        

        
          
            	

                  	(C)	
                    such payment can be lawfully withheld and failure to pay such Tax does not have or is not reasonably likely to have a Material Adverse Effect.

                  

          

        

        
          
            	

                  	(ii)	
                    No Obligor may change its residence for Tax purposes.

                  

          

        

        
          50

          
            

        

        

        

        
          
            	

                  	(n)	
                    Further assurance: the
                        Charterers shall, at their own expense, promptly take all such action as the Owners may reasonably require for the purpose of perfecting or protecting any of the Owners’ rights with respect to the security created or evidenced (or
                        intended to be created or evidenced) by the Security Documents.

                  

          

        

        
          
            	

                  	(o)	
                    Other information: the
                        Charterers will promptly supply to the Owners such financial information and explanations as the Owners may from time to time reasonably require in connection with the Charterers.

                  

          

        

        
          
            	

                  	(p)	
                    Inspection of records: the
                        Charterers will permit the inspection of their financial records and accounts relating to the Transaction Documents on reasonable notice from time to time during business hours by the Owners or its nominee.

                  

          

        

        
          
            	

                  	(q)	
                    Merger and demerger: the
                        Charterers shall not enter into any amalgamation, merger, demerger or corporate restructuring without the prior written consent of the Owners (such consent not to be unreasonably withheld or delayed).

                  

          

        

        
          
            	

                  	(r)	
                    Financial indebtedness:

                  

          

        

        
          
            	

                  	(i)	
                    The Charterers may from time to time make or grant loans and to make payment of principal and to pay interests on such loans to the Shareholder, and the
                        Shareholder may from time to time make or grant loans to the Charterers, in each case pursuant to the terms and conditions of the Intra- group Loan Agreement, provided that:

                  

          

        

        
          
            	

                  	(A)	
                    no Termination Event is in existence or will occur from the making of such loan;

                  

          

        

        
          
            	

                  	(B)	
                    the indebtedness obligations owed or to be owed under the Intra- group Loan Agreement shall, pursuant to separate undertaking(s) or deed(s) (in such form
                        and content acceptable to the Owners (acting reasonably)) between the Charterers, the Shareholder and Owners, rank behind and be fully subordinated to any obligations under the Transaction Documents and any of the Charterers’ or the
                        Shareholder’s rights and claims under such loans are assigned to the Owners.

                  

          

        

        
          
            	

                  	(ii)	
                    Except as provided in Clause 49(r)(i), the Charterers shall not, without the prior written consent of the Owners:

                  

          

        

        
          
            	

                  	(A)	
                    incur any loans, guarantees or any other form of Financial Indebtedness (except where such loans, guarantees or any other form of Financial Indebtedness
                        is subordinated to the Debt pursuant to separate undertaking(s) or deed(s) in such form and content acceptable to the Owners (acting reasonably)) nor incur any obligations as lessee under leases; or

                  

          

        

        
          
            	

                  	(B)	
                    make any loans or advances to, or investments in, any person who is not within the Charter Group (including, without limitation, any officer, director,
                        stockholder, employee or customer of the Charterer),

                  

          

        

        provided that on and at any time after the occurrence of an Termination Event which is
            continuing:

        
          51

          
            

        

        

        

        
          
            	

                  	(C)	
                    the Charterers shall not, without the prior consent of the Owners, make any payment of principal or interest to any of its creditors in respect of any
                        loans or loan capital or other form of Financial Indebtedness made available to it by them including, but without limitation to, any Financial Indebtedness incurred under sub- paragraph (A) above; and

                  

          

        

        
          
            	

                  	(D)	
                    notwithstanding sub-paragraph (B) above, the Charterers shall not, without the prior consent of the Owners, make any loans or advances to, or any
                        investments in, any person.

                  

          

        

        
          
            	

                  	(iii)	
                    The Charterers shall procure that Charter Guarantor 1 shall not, without the prior written consent of the Owners, incur total borrowings in an amount
                        greater than 75% of its total assets if the average time-charter period procured by the Guarantor for all vessels of the Charter Group is less than 2.5 years.

                  

          

        

        
          
            	

                  	(s)	
                    Transfer of assets: the
                        Charterers shall not, sell or transfer any of its material assets other than:

                  

          

        

        
          
            	

                  	(i)	
                    on arm’s length terms to third parties where the net proceeds of sale are used as a prepayment hereunder; or

                  

          

        

        
          
            	

                  	(ii)	
                    on arm’s length terms to its Affiliates, which are and remain members of the Charter Group.

                  

          

        

        
          
            	

                  	(t)	
                    Change of business: the
                        Charterers shall not, without the prior written consent of the Owners, make any substantial change to the general nature of their shipping business from that carried on at the date of this Charter.

                  

          

        

        
          
            	

                  	(u)	
                    “Know your customer” checks:
                        if:

                  

          

        

        
          
            	

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

                  

          

        

        
          
            	

                  	(ii)	
                    any change in the status of the Charterers and/or the Charter Guarantors after the date of this Charter; or

                  

          

        

        
          
            	

                  	(iii)	
                    (iii) a proposed assignment or transfer by Owners of any of its rights and obligations under this Charter,

                  

          

        

        obliges the Owners to comply with “know your customer” or similar identification procedures in
            circumstances where the necessary information is not already available to it, the Charterers shall promptly upon the request of the Owners supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the
            Owners in order for the Owners to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Transaction
            Documents.

        
          
            	

                  	(v)	
                    Management of the Vessel: the
                        Charterers shall ensure that:

                  

          

        

        
          52

          
            

        

        

        

        
          
            	

                  	(i)	
                    the Vessel is at all times technically managed by an Approved Manager and commercially managed by the Charterers;

                  

          

        

        
          
            	

                  	(ii)	
                    unless (A) the Charterers have promptly informed the Owners in writing of any proposed change of an Approved Manager, and (B) the Owners have granted its
                        prior written consent (which shall not be unreasonably withheld or delayed) to such proposed change, the Approved Manager shall not be changed to another entity; and

                  

          

        

        
          
            	

                  	(iii)	
                    the Approved Managers will provide a written confirmation confirming that, among other things, following the occurrence of Termination Event which is
                        continuing, all claims of the Approved Managers against the Charterers shall be subordinated to the claims of the Owners or the Finance Parties (if applicable) under the Transaction Documents.

                  

          

        

        
          
            	

                  	(w)	
                    Classification: the Charterers
                        shall ensure that the Vessel maintains the highest classification required for the purpose of the relevant trade of the Vessel which shall be with the Vessel’s Classification Society, in each case, free from any material overdue
                        recommendations and adverse notations affecting that the Vessel’s class.

                  

          

        

        
          
            	

                  	(x)	
                    Certificate of financial
                          responsibility: the Charterers shall, if required, obtain and maintain a certificate of financial responsibility in relation to the Vessel which is to call at the United States of America.

                  

          

        

        
          
            	

                  	(y)	
                    Registration: the Charterers
                        shall not change or permit a change to the flag of the Vessel during the duration of this Charter other than to a Pre-Approved Flag, such approval not to be unreasonably withheld or delayed. Any change to the flag of the Vessel
                        shall be at the cost of the Charterers (which shall include any costs of the Finance Parties (if applicable).

                  

          

        

        
          
            	

                  	(z)	
                    ISM, ISPS and Maritime Labour
                          Convention Compliance: the Charterers shall ensure that each ISM Company and ISPS Company complies in all material respects with the ISM Code and the ISPS Code, respectively, or any replacements thereof and in particular
                        (without prejudice to the generality of the foregoing) shall ensure that such company holds (i) a valid and current Document of Compliance issued pursuant to the ISM Code, (ii) a valid and current SMC issued in respect of the Vessel
                        pursuant to the ISM Code, and (iii) an ISSC in respect of the Vessel, and the Charterers shall promptly, upon request, supply the Owners with copies of the same. The Charterers shall at all time comply with the Maritime Labour
                        Convention.

                  

          

        

        
          
            	

                  	(aa)	
                    Chartering-in: the Charterers
                        shall not, during the duration of this Charter, without the prior written consent of the Owners, take any vessel on charter or other contract of employment (or agree to do so).

                  

          

        

        
          
            	

                  	(bb)	
                    Change of control: the
                        Charterers shall ensure that, without the prior written consent of the Owners:

                  

          

        

        
          
            	

                  	(i)	
                    during the duration of the Charter Period, no Change of Control shall occur under paragraph (a) of the definition of “Change of Control” in this Charter;
                        and

                  

          

        

        
          
            	

                  	(ii)	
                    from the beginning of the Charter Period until such time (the “Relevant Time”) after the fifth anniversary when it is shown to the satisfaction of the

                  

          

        

        
          53

          
            

        

        

        

        Owners that the Ratio (as defined in Clause 49(ee)) is higher than the required VTL Ratio, no
            Change of Control shall occur under paragraph (b) of the definition of “Change of Control” in this Charter.

        Commencing from the Relevant Time:

        
          
            	

                  	(A)	
                    the restriction under paragraph (b) of the definition of “Change of Control” shall not apply; and

                  

          

        

        
          
            	

                  	(B)	
                    notwithstanding Clause 49(r)(iii), the Charterers shall procure that Charter Guarantor 1 shall not, without the prior written consent of the Owners, incur
                        total borrowings in an amount greater than 75% of its total assets at all time (whether or not the average time-charter period procured by the Guarantor for all vessels of the Charter Group is less than 2.5 years).

                  

          

        

        
          
            	

                  	(cc)	
                    Inspection of Vessel and inspection
                          reports: in the absence of a Termination Event, subject to there being no undue interference with the operation of the Vessel:

                  

          

        

        
          
            	

                  	(i)	
                    the Owners may at the Charterers’ cost arrange for persons appointed by the Owners to board the Vessel once in each calendar year during the Charter
                        Period to inspect the Vessel’s state and condition, and the Charterers will provide commercially reasonable assistance to facilitate such inspection; and

                  

          

        

        
          
            	

                  	(ii)	
                    the Charterers shall, within five (5) Business Days’ of the Owners’ written demand, reimburse the Owners for all costs, fees and expenses reasonably
                        incurred by the Owners in connection with the Owners’ procuring or arranging the procurement of the relevant inspection report as to the condition of the Vessel,

                  

          

        

        provided always however that if a Termination Event has occurred and is continuing, the Owners
            may at any time and at the Charterers’ cost conduct such inspection and the Charterers shall be deemed to have granted such permission and shall provide such necessary assistance to the Owners in respect of such inspection.

        
          
            	

                  	(dd)	
                    Sub-Charterers: the Charterers
                        will, where applicable, use best endeavours and forthwith execute and deliver any and all such other agreements, instruments and documents (including any novation agreement) as may be required by law or deemed necessary or desirable
                        by the Owners to ensure that any Sub-Charter which is in effect on the Delivery Date remains in effect, so that all obligations previously owed by the relevant Sub-Charterers to the Charterers under such Sub-Charter shall continue
                        to be owed to the Charterers throughout the Agreement Term.

                  

          

        

        
          
            	

                  	(ee)	
                    Valuation of Market Value

                  

          

        

        
          
            	

                  	(i)	
                    The Charterers shall procure valuation of the Market Value of the Vessel to be made (and procure the delivery to the Owners of the Valuation Reports
                        issued by the Approved Brokers): (i) once every twelve (12) months during the Charter Period (each such Valuation Report to be at the Charterers’ cost); and (ii) at such other times as the Owners may require in their absolute
                        discretion (each such additional Valuation Reports to be at Owners’ cost unless a Termination Event has occurred and is continuing following which such additional Valuation Reports shall be at the cost of the Charterers).

                  

          

        

        
          54

          
            

        

        

        

        
          
            	

                  	(ii)	
                    The valuation shall be conducted at such time as the Owners may notify the Charterers. The valuation shall determine the Market Value of the Vessel of
                        that year. The Valuation Report shall be delivered to the Owners within one month in which the valuation was conducted.

                  

          

        

        
          
            	

                  	(iii)	
                    The Market Value of the Vessel shall be the arithmetic average of desk-top valuations obtained from three (3) Approved Brokers with two selected by the
                        Charterers and the other selected by the Owners which shall be Vessels Value and the expenses of such appointments shall be borne by the Charterers). Each such valuation shall take into account the benefit of this Charter and any
                        Sub-Charter (dated no earlier than thirty (30) days from the relevant date) on the basis of a willing buyer and a willing seller at arm’s length.

                  

          

        

        
          
            	

                  	(iv)	
                    If valuation is obtained in accordance with this Clause and the ratio (the “Ratio”) of:

                  

          

        

        
          
            	

                  	(A)	
                    the Market Value

                     

                      

                    to

                      

                  

          

        

        
          
            	

                  	(B)	
                    the Cost Balance less the deposits received by the Owners (including the Deposit (defined below))

                  

          

        

        is equal to or less than one hundred and ten per cent (110%) (the “Required VTL Ratio”), the Charterers shall, within twenty (20) days of the issuance of the Valuation Reports (or, if the two (2) Valuation Reports are not issued on the
            same day, the date of the later Valuation Report), pay a deposit to the Owners (the “Deposit”, which expression shall include any additional
            payment of deposit from time to time pursuant to this Clause 49(ee)) or (subject to the internal approval and consent of the Owners on the relevant asset class and nature of the proposed additional security) provide such approved additional
            security which, in the opinion of the Owners, has a net realisable value in an amount equal to the shortfall as may be necessary to ensure that the Ratio does not exceed the Required VTL Ratio.

        
          
            	

                  	(v)	
                    Without prejudice to any other rights or remedies of the Owners hereunder, the Owners shall have the right to apply the Deposit or parts thereof upon the
                        occurrence of a Termination Event towards payment of any sums due and payable by the Charterers under the Transaction Documents including but not limited to any Termination Sum. In circumstances where the Owners has waived its right
                        to terminate this Charter and this Charter is continuing, the Charterers shall within ten (10) days, deposit with the Owners such additional amounts as may be required to make up the Deposit (where all or part of the Deposit was
                        used towards payment of any sums due and payable by the Charterers under the Transaction Documents).

                  

          

        

        
          
            	

                  	(vi)	
                    The Deposit shall be retained by the Owners free of any interest to the Charterers as security deposit to secure the due observance and performance by the
                        Charterers of its obligations and undertakings herein contained and shall be released or partially released to the Charterers only pursuant to this Clause 49(ee)(vi).

                  

          

        

        
          55

          
            

        

        

        

        
          
            	

                  	(vii)	
                    If the Ratio determined at any subsequent annual valuation under this Clause 49(ee) is above the Required VTL Ratio, the Owners shall within twenty (20)
                        Banking Days from the written demand of the Charterers, refund all or part of the Deposit to the Charterers PROVIDED ALWAYS THAT the Required VTL Ratio is complied with after such refund. If any part of the Deposit is not refunded
                        to the Charterers pursuant to the preceding provision, any remaining balance of the Deposit held by the Owners shall be refunded to the Charterers within twenty (20) Banking Days after the expiration or termination of the Charter
                        Period PROVIDED THAT no Termination Event has occurred and is continuing.

                  

          

        

        
          
            	

                  	(ff)	
                    Sub-Charter: the Charterers
                        shall procure that, without the prior written consent of the Owners, there shall be no termination of, alteration to or waiver of any material term of, any Sub-Charter.

                  

          

        

        
          
            	

                  	(gg)	
                    Transactions with Affiliates: the

                        Charterers shall procure that all transactions conducted or to be conducted between them and any of the Obligors or any of that Obligor’s Affiliates will be on an arm’s length commercial basis.

                  

          

        

        
          
            	

                  	(hh)	
                    Notification: the Charterers
                        shall notify the Owners promptly after they become aware of the expiry or early termination of any Sub-Charter.

                  

          

        

        
          
            	

                  	(ii)	
                    No Security Interest The
                        Charterers will not create or permit to subsist any Security Interest or any other third party rights over any of their present and future rights and interest in or towards the Vessel, except for any:

                  

          

        

        
          
            	

                  	(i)	
                    Permitted Security Interest; or

                  

          

        

        
          
            	

                  	(ii)	
                    Security Interest created (A) in favour of the Owners or the Finance Parties, (B) otherwise with the prior written consent of the Owners (such consent not
                        to be unreasonably withheld or delayed), or (C) as otherwise permitted under the Transaction Documents.

                  

          

        

        
          
            	

                  	(jj)	
                    Project Documents

                  

          

        

        
          
            	

                  	(i)	
                    The Charterers shall:

                  

          

        

        
          
            	

                  	(A)	
                    without affecting its obligations under the applicable provisions of the Transaction Documents, perform and observe its obligations under the Project
                        Documents and use its best endeavours to procure that each of the other parties to the Project Documents performs and observes its obligations under them; and

                  

          

        

        
          
            	

                  	(B)	
                    obtain and maintain in force, and promptly furnish certified copies to the Owners of, all licences, authorisations, approvals and consents, and do all
                        other acts and things, which may from time to time be necessary or desirable for the continued due performance of its obligations under the Transaction Documents and the Project Documents or which may be required for the validity,
                        enforceability or admissibility in evidence of the Transaction Documents and the Project Documents;

                  

          

        

        
          
            	

                  	(ii)	
                    The Charterers shall not, without the prior written consent of the Owners:

                  

          

        

        
          56

          
            

        

        

        

        
          
            	

                  	(A)	
                    except as contemplated by this Charter, sell or agree to sell the Vessel (including a sale of the Vessel during her construction by way of an assignment,
                        novation or other transfer of the Building Contract) or convey, assign, transfer, sell or otherwise dispose of or deal with any of its other real or personal property, assets or rights, whether present or future, in connection with
                        the Vessel; or

                  

          

        

        
          
            	

                  	(B)	
                    waive or fail to enforce any provision of, or agree to any amendment or supplement to, the Building Contract, save to the extent expressly permitted by
                        the terms of any Transaction Document.

                  

          

        

        50.    Earnings Account

        In addition to Clause 49 (Charterers’ undertakings), the Charterers hereby undertake to the Owners that, throughout the Agreement Term, they will deposit all of the Earnings received by the Charterers into the Earnings Account, free
            and clear of any costs, fees, expenses, disbursements, withholdings or deductions..

        51.    Termination Events

        
          
            	

                  	(a)	
                    Each of the following events shall constitute a Termination Event:

                  

          

        

        
          
            	

                  	(i)	
                    Failure to pay any Obligor: any

                        Obligor fails to pay any amount due from it under any Transaction Document to which they are parties at the time, in the currency and otherwise in the manner specified therein provided that, if an Obligor can demonstrate to the
                        reasonable satisfaction of the Owners that all necessary instructions were given to effect such payment and the non-receipt thereof is attributable solely to an administrative or technical error or an error in the banking system or
                        a Disruption Event, then such payment shall instead be deemed to be due, solely for the purposes of this paragraph, within five (5) Business Days of the date on which it actually fell due under this Charter (if a payment of Hire)
                        and three (3) Business Days (if a sum payable on demand); or

                  

          

        

        
          
            	

                  	(ii)	
                    Misrepresentation: any
                        representation or statement made by any Obligor in any Transaction Document to which it is a party or in any notice or other document, certificate or statement delivered by it pursuant thereto or in connection therewith is or proves
                        to have been incorrect or misleading in any material respect, where the circumstances causing the same give rise to a Material Adverse Effect; or

                  

          

        

        
          
            	

                  	(iii)	
                    Specific covenants: any
                        Obligor fails duly to perform or comply with any of the obligations expressed to be assumed by or procured by them under paragraphs49(bb), (ee) and (gg) of Clause 49 (Charterers’ undertakings); or

                  

          

        

        
          
            	

                  	(iv)	
                    Other obligations: any of the
                        Obligors fails duly to perform or comply with any of the obligations expressed to be assumed by them in any Transaction Document (other than those referred to in paragraph (iii)) and such failure (if capable of remedy) is not
                        remedied within fourteen (14) Business Days after the earlier of (A) the Owners having given notice thereof to the relevant Obligor and (B) the Obligor becoming aware of such failure to perform or comply; or

                  

          

        

        
          57

          
            

        

        

        

        
          
            	

                  	(v)	
                    Cross Default: any Financial
                        Indebtedness of any Obligor is not paid when due (or within any applicable grace period) and payable prior to its specified maturity where the aggregate of all such unpaid or accelerated indebtedness of such Obligor is equal to or
                        greater than US Dollars Eight Million (US$8,000,000) or its equivalent in any other currency or currencies; or

                  

          

        

        
          
            	

                  	(vi)	
                    Insolvency and rescheduling: any

                        of the Obligors is unable to pay their debts as they fall due, commences negotiations with any one or more of their creditors with a view to the general readjustment or rescheduling of their indebtedness or makes a general
                        assignment for the benefit of their creditors or a composition with their creditors; or

                  

          

        

        
          
            	

                  	(vii)	
                    Winding-up: any of the
                        Obligors files for initiation of formal restructuring proceedings, is wound up or declared bankrupt or takes any corporate action or other steps are taken or legal proceedings are started for their winding-up, dissolution,
                        administration or re-organisation or for the appointment of a liquidator, receiver, administrator, administrative receiver, conservator, custodian, trustee or similar officer of them or of any or all of their revenues or assets or
                        any moratorium is declared or sought in respect of any of their indebtedness; or

                  

          

        

        
          
            	

                  	(viii)	
                    Execution or distress

                  

          

        

        
          
            	

                  	(A)	
                    any Obligor fails to comply with or pays any sum due from them (within thirty (30) days of such amount falling due) under any final judgment or any final
                        order made or given by any court or other official body of a competent jurisdiction in an aggregate in respect of the Obligor equal to or greater than US Dollars Eight Million (US$8,000,000) or its equivalent in any other currency,
                        being a judgment or order against which there is no right of appeal or if a right of appeal exists, where the time limit for making such appeal has expired; or

                  

          

        

        
          
            	

                  	(B)	
                    any execution or distress is levied against, or an encumbrancer takes possession of, the whole or any part of, the property, undertaking or assets of any
                        Obligor in an aggregate amount equal to or greater than US Dollars Five Million (US$5,000,000) or its equivalent in any other currency or currencies, other than any execution or distress which is being contested in good faith and
                        which is either discharged within thirty (30) days or in respect of which adequate security has been provided within thirty (30) days to the relevant court or other authority to enable the relevant execution or distress to be lifted
                        or released; or

                  

          

        

        
          
            	

                  	(ix)	
                    Similar event: any event
                        occurs which, under the laws of any jurisdiction, has a similar or analogous effect to any of those events mentioned in paragraphs (vi), (vii) or (viii) above; or

                  

          

        

        
          
            	

                  	(x)	
                    Repudiation: any of the
                        Obligors repudiates any Transaction Document to which it is a party or do or cause to be done any act or thing evidencing an intention to repudiate any such Transaction Document; or

                  

          

        

        
          58

          
            

        

        

        

        
          
            	

                  	(xi)	
                    Validity and admissibility: at
                        any time any act, condition or thing required to be done, fulfilled or performed in order:

                  

          

        

        
          
            	

                  	(A)	
                    to enable any of the Obligors lawfully to enter into, exercise their rights under and perform the material obligations expressed to be assumed by them in
                        the Transaction Documents;

                  

          

        

        
          
            	

                  	(B)	
                    to ensure that the material obligations expressed to be assumed by any of the Obligors in the Transaction Documents are legal, valid and binding; or

                  

          

        

        
          
            	

                  	(C)	
                    to make the Transaction Documents admissible in evidence in any applicable jurisdiction,

                  

          

        

        is not done, fulfilled or performed within thirty (30) days after notification from the Owners
            to the relevant Obligor requiring the same to be done, fulfilled or performed; or

        
          
            	

                  	(xii)	
                    Illegality: at any time:

                  

          

        

        
          
            	

                  	(A)	
                    it is or becomes unlawful for any of the Obligors to perform or comply with any or all of their obligations under the Transaction Documents to which they
                        are parties;

                  

          

        

        
          
            	

                  	(B)	
                    any of the obligations of any of the Obligors under the Transaction Documents to which they are parties are not or cease to be legal, valid and binding;
                        or

                  

          

        

        
          
            	

                  	(C)	
                    any Security Interest created or purported to be created by the Security Documents ceases to be legal, valid, binding, enforceable or effective or is
                        alleged by a party to such Security Document (other than the Owners) to be ineffective,

                  

          

        

        and, in each case, such illegality is not remedied or mitigated to the satisfaction of the
            Owners within thirty (30) days after it has given notice thereof to the Charterers; or

        
          
            	

                  	(xiii)	
                    Material adverse change: at
                        any time there shall occur any event or change which has a Material Adverse Effect in respect of any of the Obligors and such event or change, if capable of remedy, is not so remedied within thirty (30) days of the delivery of a
                        notice confirming such event or change by the Owners to the Charterers; or

                  

          

        

        
          
            	

                  	(xiv)	
                    Conditions precedent: if any
                        of the conditions set out in Clause 37 (Conditions precedent) is not satisfied by the relevant time or such other time period
                        specified by the Owners in their discretion; or

                  

          

        

        
          
            	

                  	(xv)	
                    Revocation or modification of consents
                          etc.: if any Necessary Authorisation which is now or which at any time during the Agreement Term becomes necessary to enable an Obligor to comply with any of its obligations in or pursuant to any of the Transaction
                        Documents or the Project Documents is revoked, withdrawn or withheld, or modified in a manner which the Owners reasonably consider is, or may be, prejudicial to the interests of Owners in a

                  

          

        

        
          59

          
            

        

        

        

        material manner, or if such Necessary Authorisation ceases to remain in full force and effect; or

        
          
            	

                  	(xvi)	
                    Cessation of business: any of
                        the Obligors ceases, or threatens to cease, to carry on all or a substantial part of its business; or

                  

          

        

        
          
            	

                  	(xvii)	
                    Curtailment of business: if
                        the business of any of the Obligors is wholly or materially curtailed by any intervention by or under authority of any government, or if all or a substantial part of the undertaking, property or assets of the Obligor is seized,
                        nationalised, expropriated or compulsorily acquired by or under authority of any government or any of the Obligors disposes or threatens to dispose of a substantial part of their business or assets; or

                  

          

        

        
          
            	

                  	(xviii)	
                    Environmental matters

                  

          

        

        
          
            	

                  	(A)	
                    any Environmental Claim is pending or made against any Obligor or in connection with the Vessel, where such Environmental Claim has a Material Adverse
                        Effect; or

                  

          

        

        
          
            	

                  	(B)	
                    any actual Environmental Incident occurs in connection with the Vessel, where such Environmental Incident has a Material Adverse Effect; or

                  

          

        

        
          
            	

                  	(xix)	
                    Loss of property: all or a
                        substantial part of the business or assets of any of the Obligors is destroyed, abandoned, seized, appropriated or forfeited for any reason, and such occurrence in the reasonable opinion of the Owners has a Material Adverse Effect;
                        or

                  

          

        

        
          
            	

                  	(xx)	
                    Sanctions: any Obligor or any
                        of their directors, officers or employees becomes a Restricted Party; or

                  

          

        

        
          
            	

                  	(xxi)	
                    Arrest: the Vessel is arrested
                        or seized for any reason whatsoever (other than caused solely and directly by any action or omission from the Owners) unless the Vessel is released and returned to the possession of the Charterers within twenty one (21) days of such
                        arrest or seizure; or

                  

          

        

        
          
            	

                  	(xxii)	
                    Building Contract: Any of the
                        following events or circumstances occur in respect of the Building Contract:

                  

          

        

        
          
            	

                  	(A)	
                    the Building Contract is cancelled, terminated, rescinded for whatsoever reasons; or

                  

          

        

        
          
            	

                  	(B)	
                    the Building Contract is varied, amended, supplemented and/or restated in any material aspects without the prior written consent of the Owners; or

                  

          

        

        
          
            	

                  	(C)	
                    it becoming impossible or unlawful for any party to the Building Contract to fulfil any of its obligations under, or to exercise any rights vested in it,
                        by that document; or

                  

          

        

        
          60

          
            

        

        

        

        
          
            	

                  	(D)	
                    the Building Contract is breached in any material respect by any party or for any reason becoming invalid or unenforceable or otherwise ceasing to be in
                        full force and effect; or

                  

          

        

        
          
            	

                  	(E)	
                    any party repudiating or threatening to repudiate the Building Contract; or

                  

          

        

        
          
            	

                  	(xxiii)	
                    Delivery: the Vessel has not
                        for any reason been delivered to, and accepted by, the Charterers under the Building Contract, and subsequently delivered by the Charterers to the Owners under the MOA on or before the Cancellation Date;

                  

          

        

        
          
            	

                  	(xxiv)	
                    Termination of Sub-Charter: a
                        Sub-Charter is terminated, repudiated or cancelled:

                  

          

        

        
          
            	

                  	(A)	
                    by the Sub-Charterers due to a breach by the Charterers unless (1) such breach does not materially affect the ability of the Charterers to perform its
                        obligations under this Charter, and (2) the Charterers enter into a replacement Sub-Charter (on terms reasonably acceptable to the Owners) with a Sub-Charterer (reasonably acceptable to the Owners) within sixty (60) days of such
                        termination, repudiation or cancellation; or

                  

          

        

        
          
            	

                  	(B)	
                    for any reason other than a breach by the Charterers unless the Charterers enter into a replacement Sub-Charter (on terms reasonably acceptable to the
                        Owners) with a Sub-Charterers (reasonably acceptable to the Owners) within one hundred and eighty (180) days of such termination, repudiation or cancellation;

                  

          

        

        
          
            	

                  	(b)	
                    The Owners and the Charterers agree that it is a fundamental term and condition of this Charter that no Termination Event shall occur during the Agreement
                        Term. Without prejudice to the forgoing, a Termination Event which is continuing shall constitute an agreed terminating event, the occurrence of which will entitle the Owners to exercise all or any of the remedies set out below in
                        this Clause 51.

                  

          

        

        
          
            	

                  	(c)	
                    At any time after a Termination Event shall have occurred and be continuing following the lapse of any applicable grace period, the Owners may at their
                        option:

                  

          

        

        
          
            	

                  	(i)	
                    by delivering to the Charterers a Termination Notice, terminate this Charter with immediate effect or on the date specified in such Termination Notice and
                        withdraw the Vessel from the service of the Charterers without noting any protest and without interference by any court or any other formality whatsoever, whereupon the Vessel shall no longer be in the possession of the Charterers
                        with the consent of the Owners, and the Charterers shall redeliver the Vessel to the Owners in accordance with Clauses 43 (Redelivery)
                        and 44 (Redelivery conditions);

                  

          

        

        
          
            	

                  	(ii)	
                    apply any amount then standing to the credit to the Earnings Account against any Unpaid Sum or such other amounts which the Charterers or other Obligors
                        may owe under the Transaction Documents; and/or

                  

          

        

        
          
            	

                  	(iii)	
                    (iii) (without prejudice to sub-paragraph (ii) above) enforce any Security Interest created pursuant to the relevant Transaction Documents.

                  

          

        

        
          61

          
            

        

        

        

        
          
            	

                  	(d)	
                    On the Termination Payment Date in respect of any termination of the chartering of the Vessel under this Charter in accordance with paragraph (c) above,
                        the Charterers shall pay to the Owners an amount equal to the Early Termination Amount.

                  

          

        

        
          
            	

                  	(e)	
                    Following any termination to which this Clause 51 applies, all sums payable in accordance with paragraph (d) above shall be paid to such account or
                        accounts as the Owners may direct and shall be applied in the Owners’ sole discretion (including but not limited to towards settlement of the Early Termination Amount, or part thereof).

                  

          

        

        
          
            	

                  	(f)	
                    If the chartering of the Vessel or, as the case may be, the obligation of the Owners to deliver and charter the Vessel to the Charterers is terminated in
                        accordance with the terms of this Charter, the obligation of the Charterers to pay Hire, if not yet paid, shall cease once the Charterers have made the payment pursuant to paragraph (d) above to the satisfaction of the Owners,
                        whereupon the Owners shall arrange for title of the Vessel to be transferred to the Charterers in accordance with paragraphs (c) to (f) of Clause 55 (Purchase Option and transfer of title) save that no further payment of the Purchase Option Price referred to under paragraph (c) of Clause 55 (Purchase Option and transfer of title) would be required from the Charterers.

                  

          

        

        
          
            	

                  	(g)	
                    Without prejudice to the forgoing or to any other rights of the Owners under this Charter, at any time after a Termination Notice is served under
                        paragraph (c) above, the Owners may, acting in their sole discretion:

                  

          

        

        
          
            	

                  	(i)	
                    without prejudice to the Charterers’ obligations under Clause 44 (Redelivery conditions), retake possession of the Vessel and, the Charterers agree that the Owners, for such purpose, may put into force and exercise all their rights and entitlements at law and may enter upon any
                        premises belonging to or in the occupation or under the control of the Charterers where the Vessel may be located as well as giving instructions to the Charterers’ servants or agents for this purpose; and/or

                  

          

        

        
          
            	

                  	(ii)	
                    change or replace the Approved Manager.

                  

          

        

        
          
            	

                  	(h)	
                    Save as otherwise expressly provided in this Charter, the Charterers shall not have the right to terminate this Charter at any time prior to the
                        expiration of the Agreement Term. The rights conferred upon the Owners by the provisions of this Clause 51 are cumulative and in addition to any rights which they may otherwise have in law or in equity or by virtue of the provisions
                        of this Charter.

                  

          

        

        
          
            	

                  	(i)	
                    It is hereby agreed between the Owners and the Charterers that the Charterers are entitled to cease paying the Hire for such period as the Vessel is under
                        arrest, detention, seizure or confiscation as a direct result of the Owners’ default, act, omission or misconduct (excluding any arrest, detention, seizure and confiscation being litigation or proceeding or claim which is frivolous,
                        vexatious or an abuse of the process of the court which the Owners has a good defence and is being contested by the Owners in good faith and by appropriate proceedings) provided there is no contributory negligence from or default by
                        the Charterers in respect thereof.

                  

          

        

        
          
            	

                  	(j)	
                    Liquidated damages received under the Building Contract

                  

          

        

        
          
            	

                  	(i)	
                    In the circumstances that the Charterers have not exercised any of the purchase options on or before the last day of the Charter Period under

                  

          

        

        
          62

          
            

        

        

        

        Clause 55(a) of this Charter (Purchase Option and transfer of title) and the Vessel is redelivered to the Owners for whatever reasons, the Charterers shall return the relevant percentage set out in the following table of any
            liquidated damages they received under the Building Contract in connection with any physical defects or deficiencies of the Vessel to the Owners:

        	
                In case the Vessel is redelivered to the Owners before the expiry of the nth anniversary (year(s)) of the Charter Period

              	
                Percentage

              
	
                1

              	
                75.0%

              
	
                2

              	
                70.8%

              
	
                3

              	
                66.7%

              
	
                4

              	
                62.5%

              
	
                5

              	
                58.3%

              
	
                6

              	
                54.2%

              
	
                7

              	
                50.0%

              
	
                8

              	
                45.8%

              
	
                9

              	
                41.7%

              
	
                10

              	
                37.5%

              

        

        

        52. Sub-chartering and assignment

        
          
            	

                  	(a)	
                    The Charterers shall not without the prior written consent of the Owners (which may be given subject to conditions):

                  

          

        

        
          
            	

                  	(i)	
                    let the Vessel on demise charter for any period;

                  

          

        

        
          
            	

                  	(ii)	
                    de-activate or lay up the Vessel; or

                  

          

        

        
          
            	

                  	(iii)	
                    assign their rights under this Charter.

                  

          

        

        
          
            	

                  	(b)	
                    The Charterers acknowledge that the Owners’ consent to any sub-bareboat chartering may be subject (amongst other things) to the Owners being satisfied as
                        to the intended flag during such sub-bareboat chartering.

                  

          

        

        
          
            	

                  	(c)	
                    Without prejudice to anything contained in this Clause 52, the Charterers shall only enter into any Sub-Charter or vessel pooling or sharing arrangements
                        for the Vessel which is for a purpose for which the Vessel is suited and with a Sub-Charterers or a charterer under the pooling or sharing arrangement which is not a Restricted Party and in each case, the Charterers shall, in
                        relation to any Sub-Charter or vessel pooling or sharing arrangements, assign to the Owners all their Earnings arising out of and in connection with such Sub-Charter or vessel pooling or sharing arrangements and all their rights and
                        interest in such Sub-Charter or vessel pooling or sharing arrangements as the Owners may require and the Charterers shall serve a notice on any Sub-Charterers or such other person as the Owners may require and shall obtain a written
                        acknowledgement of such assignment from such Sub- Charterers or that other person in such form as is required by the Owners or any Finance Party (as the case may be).

                  

          

        

        
          
            	

                  	(d)	
                    The Charterers may request for a Sub-Charter Quiet Enjoyment Letter to be issued to the Sub-Charterers provided that the conditions set out in Clause
                        46(b)(ii) are satisfied.

                  

          

        

        
          63

          
            

        

        

        

        53.    Name of Vessel

        Provided that the prior written consent has been given by the Owners:

        
          
            	

                  	(a)	
                    the name of the Vessel may be chosen by the Charterers; and

                  

          

        

        
          
            	

                  	(b)	
                    the Vessel may be painted in the colours, display the funnel insignia and fly the house flag as required by the Charterers.

                  

          

        

        54.     Charter Period

        The Charter period under this Charter shall be one hundred and twenty (120)
            months commencing from the Delivery Date, unless otherwise extended or terminated pursuant to Clauses 41(k) (Hire), 51 (Termination Events), 56 (Sale of the Vessel by
              the Owners) and 57 (Total Loss).

        55.     Purchase Option and transfer of title

        
          
            	

                  	(a)	
                    Subject to no Termination Events or Total Loss under Clause 57 (Total loss), the Charterers may, on each Hire Payment Date falling twenty-four (24) months after the Delivery Date, by at least sixty (60) calendar days prior written notice to the Owners, declare to the Owners
                        their exercise of the option to purchase the Vessel or to cause their nominee to purchase the Vessel on a Hire Payment Date by payment of the corresponding amount equal to the Purchase Option Price. To avoid any confusion, the
                        Charter Period will end immediately upon the Purchase Option Price having been paid.

                  

          

        

        
          
            	

                  	(b)	
                    If the Charterers have not exercised their rights under paragraph (a), the Charterers may, by at least two (2) months’ prior written notice to the Owners,
                        declare to the Owners their exercise of the option to purchase the Vessel or to cause their nominee to purchase the Vessel at the end of the Charter Period by payment of the amount of USDollars Seventy Eight Million Seven Hundred
                        and Fifty Thousand (US$78,750,000).

                  

          

        

        
          
            	

                  	(c)	
                    In exchange for the full payment of the Purchase Option Price (in the case of a purchase under paragraph (a) above) or the sum stated in paragraph (b)
                        above (in the case of a purchase under paragraph (b) above) and all sums due and payable to the Owners under the Transaction Documents and subject to compliance with the other conditions set out in this Clause, the Owners shall:

                  

          

        

        
          
            	

                  	(i)	
                    transfer title to and ownership of the Vessel to the Charterers (or their nominee) by delivering to the Charterers (in each case at the Charterers’
                        costs):

                  

          

        

        
          
            	

                  	(A)	
                    a duly executed and notarised, legalised and/or apostilled (as applicable) bill of sale; and

                  

          

        

        
          
            	

                  	(B)	
                    the Title Transfer PDA; and

                  

          

        

        
          
            	

                  	(ii)	
                    Procure the deletion of any mortgage or prior Security Interest in relation to the Vessel at the Charterers’ cost and provide a certificate of ownership
                        and encumbrances evidencing that the Vessel is free from any registered mortgages/encumbrances,

                  

          

        

        
          64

          
            

        

        

        

        provided always that prior to such transfer or deletion (as the case may be), the Owners shall
            have received the letter of indemnity as referred to in paragraph (f) below from the Charterers, and the Charterers shall have performed all their obligations in connection herewith and with the Vessel, including without limitation the full
            payment of all Unpaid Sums, taxes, charges, duties, costs and disbursements (including legal fees) in relation to the Vessel.

        
          
            	

                  	(d)	
                    The transfer in accordance with paragraph (c) above shall be made in all respects at the Charterers’ expense on an “as is, where is” basis and the Owners
                        shall give the Charterers (or their nominee) no representations, warranties, agreements or guarantees whatsoever concerning or in connection with the Vessel, the Insurances, the Vessel’s condition, state or class or anything related
                        to the Vessel, expressed or implied, statutory or otherwise.

                  

          

        

        
          
            	

                  	(e)	
                    The Owners shall have no responsibility for the registrability of a bill of sale referred to in paragraph (c) above executed by the Owners, as far as such
                        bill of sale is prescribed in a generally acceptable form.

                  

          

        

        
          
            	

                  	(f)	
                    The Charterers shall, immediately prior to the receipt of the bill of sale, furnish the Owners with a letter of indemnity (in a form satisfactory to the
                        Owners) whereby the Charterers and the Charter Guarantors shall state that, among other things, the Owners has and will have no interest, concern or connection with the Vessel after the date of such letter and that the Charterers
                        and/or the Charter Guarantors shall indemnify the Owners and keep the Owners indemnified forever against any claims made by any person arising in connection with the Vessel.

                  

          

        

        56.    Sale of Vessel by the Owners

        During the Charter Period, the Owners shall not sell the Vessel unless (i) the Vessel is sold to
            an Affiliate of the Owners, or (ii) such sale is permitted by and made in accordance with Clause 51 (Termination Events) or (iii) with the
            Charterers’ prior written consent, provided that, in respect of a sale effected under (i) and (iii), such sale shall not increase the obligations of the Obligors under the Transaction Documents and any documentation required in connection with
            such sale shall be effected at the cost of the Owners. Notwithstanding the foregoing of this Clause (except for the sale permitted by and made in accordance with Clause 51 (Termination Events)), this Charter will continue to exist, valid and effective on the same and identical terms (save for logical and consequential amendments).

        57.    Total Loss

        
          
            	

                  	(a)	
                    If circumstances exist giving rise to a Total Loss, the Charterers shall promptly notify the Owners of the facts of such Total Loss. If the Charterers
                        wish to proceed on the basis of a Total Loss and advise the Owners thereof, the Owners shall agree to the Vessel being treated as a Total Loss for all purposes of this Charter. The Owners shall thereupon abandon the Vessel to the
                        Charterers and/or execute such documents as may be required to enable the Charterers to abandon the Vessel to insurers and claim a Total Loss. Without prejudice to the obligations of the Charterers to pay to the Owners all monies
                        then due or thereafter to become due under this Charter, if the Vessel shall become a Total Loss during the Charter Period, the Charter Period shall end on the Settlement Date.

                  

          

        

        
          65

          
            

        

        

        

        
          
            	

                  	(b)	
                    If the Vessel becomes a Total Loss during the Charter Period, the Charterers shall, on the Settlement Date, pay to the Owners the amount calculated in
                        accordance with paragraph (c) below.

                  

          

        

        
          
            	

                  	(c)	
                    On the Settlement Date, the Charterers shall pay to the Owners an amount equal to the Early Termination Amount as at the Termination Payment Date
                        (provided that such amount payable shall be set off against the Total Loss Proceeds if they are already received by the Owners as referred to under paragraph (d) below). The foregoing obligations of the Charterers under this
                        paragraph (c) shall apply regardless of whether or not any moneys are payable under any Insurances in respect of the Vessel, regardless of the amount payable thereunder, regardless of the cause of the Total Loss and regardless of
                        whether or not any of the said compensation shall become payable.

                  

          

        

        
          
            	

                  	(d)	
                    All Total Loss Proceeds shall be paid to such account or accounts as the Owners may direct and shall be applied towards satisfaction of the Early
                        Termination Amount and any other sums due and payable under the Transaction Documents. To the extent that there is any surplus after such application, such surplus shall be promptly returned to the Charterers.

                  

          

        

        
          
            	

                  	(e)	
                    The Charterers shall, at the Owners’ request, provide satisfactory evidence, in the reasonable opinion of the Owners, as to the date on which the
                        constructive total loss of the Vessel occurred pursuant to the definition of Total Loss.

                  

          

        

        
          
            	

                  	(f)	
                    The Charterers shall continue to pay the Advance Hire and the Hire on the days and in the amounts required under this Charter notwithstanding that the
                        Vessel shall become a Total Loss provided always that no further instalments of Hire shall become due and payable after the
                        Charterers have made the payment required by paragraph (c) above.

                  

          

        

        58.    Fees and expenses

        
          
            	

                  	(a)	
                    Subject always to paragraph (b), the Charterers shall bear all costs, fees (including legal fees) and disbursements reasonably incurred by the Owners and
                        the Charterers in connection with:

                  

          

        

        
          
            	

                  	(i)	
                    the negotiation, preparation and execution of this Charter and the other Transaction Documents;

                  

          

        

        
          
            	

                  	(ii)	
                    the delivery of the Vessel under the Building Contract, the MOA and this Charter;

                  

          

        

        
          
            	

                  	(iii)	
                    preparation or procurement of any survey, inspections, tax or insurance advice;

                  

          

        

        
          
            	

                  	(iv)	
                    all legal fees and other expenses arising out of or in connection with the exercising of the purchase option by the Charterers pursuant to Clause 55 (Purchase Option and Title Transfer) of this Charter; and

                  

          

        

        
          
            	

                  	(v)	
                    such other activities relevant to the transactions contemplated herein.

                  

          

        

        
          66

          
            

        

        

        

        
          
            	

                  	(b)	
                    Notwithstanding anything to the contrary, the Charterers shall not bear any costs, fees (including legal fees) and disbursements incurred by the Owners in
                        connection with:

                  

          

        

        
          
            	

                  	(i)	
                    any financing activities undertaken by the Owners, whether or not such financing activities are undertaken for the purposes of entering into this Charter,
                        the MOA or any of the Transaction Documents; and

                  

          

        

        
          
            	

                  	(ii)	
                    the incorporation, setting-up or continued operation of any special purpose vehicles or legal entities for the purposes of or in relation to this Charter,
                        the MOA or any of the Transaction Documents.

                  

          

        

        59.    Stamp duties and taxes

        The Charterers shall pay promptly all documented stamp, documentary or other like duties and
            taxes to which this Charter, the MOA and the other Transaction Documents may be subject or give rise and shall indemnify the Owners on demand against any and all liabilities with respect to or resulting from any delay on the part of the
            Charterers to pay such duties or taxes.

        60.    Operational notifiable events

        The Owners are to be advised as soon the Charterers are aware of the occurrence
            of any of the following events:

        
          
            	

                  	(a)	
                    when a material condition of class is applied by the Classification Society;

                  

          

        

        
          
            	

                  	(b)	
                    whenever the Vessel is arrested, confiscated, seized, requisitioned, impounded, forfeited or detained by any government or other competent authorities or
                        any other persons;

                  

          

        

        
          
            	

                  	(c)	
                    whenever a class or flag authority refuses to issue or withdraw trading certification;

                  

          

        

        
          
            	

                  	(d)	
                    in the event of a fire requiring the use of fixed fire systems or collision / grounding;

                  

          

        

        
          
            	

                  	(e)	
                    whenever the Vessel is planned for dry-docking in accordance with Clause 10(g) (Part II) and whether routine or emergency;

                  

          

        

        
          
            	

                  	(f)	
                    the Vessel is taken under tow;

                  

          

        

        
          
            	

                  	(g)	
                    any death or serious injury on board; or

                  

          

        

        
          
            	

                  	(h)	
                    any damage to the Vessel the repair costs of which (whether before or after adjudication) are likely to exceed US Dollars Three Million (US$3,000,000).

                  

          

        

        61.    Further indemnities

        
          
            	

                  	(a)	
                    Whether or not any of the transactions contemplated hereby are consummated, the Charterers shall, in addition to the provisions under Clause 17 (Indemnity) (Part II) of this Charter, indemnify, protect, defend and hold harmless the Owners and their respective officers,
                        directors and employees (collectively, the “Indemnitees”) throughout the Agreement Term from, against and in respect of, any and
                        all liabilities, obligations, losses, damages, penalties, fines, fees, claims, actions, proceedings, judgement, order or other sanction, lien, salvage, general average, suits, costs,

                  

          

        

        
          67

          
            

        

        

        

        expenses and disbursements, including reasonable legal fees and expenses, of whatsoever kind and
            nature (collectively, the “Expenses”), imposed on, suffered or incurred by or asserted against any Indemnitee, in any way relating to,
            resulting from or arising out of or in connection with, in each case, directly or indirectly, any one or more of the following:

        
          
            	

                  	(i)	
                    this Charter, any of the other Transaction Documents and the Project Documents, and any amendment, supplement or modification thereof or thereto requested
                        by the Charterers;

                  

          

        

        
          
            	

                  	(ii)	
                    the Vessel or any part thereof, including with respect to:

                  

          

        

        
          
            	

                  	(A)	
                    the ownership of, manufacture, design, possession, use or non-use, operation, maintenance, testing, repair, overhaul, condition, alteration, modification,
                        addition, improvement, storage, seaworthiness, replacement, repair of the Vessel or any part (including, in each case, latent or other defects, whether or not discoverable and any claim for patent, trademark, or copyright
                        infringement and all liabilities, obligations, losses, damages and claims in any way relating to or arising out of spillage of cargo or fuel, out of injury to persons, properties or the environment or strict liability in tort);

                  

          

        

        
          
            	

                  	(B)	
                    any claim or penalty arising out of violations of applicable law by the Charterers or any Sub-Charterers;

                  

          

        

        
          
            	

                  	(C)	
                    death or property damage of shippers or others;

                  

          

        

        
          
            	

                  	(D)	
                    any liens in respect of the Vessel or any part thereof; or

                  

          

        

        
          
            	

                  	(E)	
                    any registration and/or tonnage fees (whether periodic or not) in respect of the Vessel payable to any registry of ships;

                  

          

        

        
          
            	

                  	(iii)	
                    any breach of or failure to perform or observe, or any other non-compliance with, any covenant or agreement or other obligation to be performed by the
                        Charterers under any Transaction Document to which it is a party or the falsity of any representation or warranty of the Charterers in any Transaction Document to which it is a party or the occurrence of any Termination Event;

                  

          

        

        
          
            	

                  	(iv)	
                    in preventing or attempting to prevent the arrest, confiscation, seizure, taking and execution, requisition, impounding, forfeiture or detention of the
                        Vessel, or in securing or attempting to secure the release of the Vessel in connection with the exercise of the rights of a holder of a lien created by the Charterers;

                  

          

        

        
          
            	

                  	(v)	
                    incurred or suffered by the Owners in:

                  

          

        

        
          
            	

                  	(A)	
                    procuring the delivery of the Vessel to the Charterers under Clause 35 (Delivery);

                  

          

        

        
          
            	

                  	(B)	
                    registering the Vessel at the registry of the Pre-Approved Flag;

                  

          

        

        
          
            	

                  	(C)	
                    recovering possession of the Vessel following termination of this Charter under Clause 51 (Termination Events);

                  

          

        

        
          68

          
            

        

        

        

        
          
            	

                  	(D)	
                    arranging for a sale of the Vessel in accordance with Clause 56 (Sale of Vessel by the Owners); or

                  

          

        

        
          
            	

                  	(E)	
                    arranging for a transfer of the title of the Vessel in accordance with paragraphs (c) to (f) of Clause 55 (Purchase Option and transfer of title)

                  

          

        

        
          
            	

                  	(vi)	
                    arising from the Master or officers of the Vessel or the Charterers’ agents signing bills of lading or other documents;

                  

          

        

        
          
            	

                  	(vii)	
                    in connection with:

                  

          

        

        
          
            	

                  	(A)	
                    the arrest, seizure, taking into custody or other detention by any court or other tribunal or by any governmental entity; or

                  

          

        

        
          
            	

                  	(B)	
                    subjection to distress by reason of any process, claim, exercise of any rights conferred by a lien or by any other action whatsoever, of the Vessel which
                        are expended, suffered or incurred as a result of or in connection with any claim or against, or liability of, the Charterers or any other member of the Charter Group, together with any costs and expenses or other outgoings which
                        may be paid or incurred by the Owners in releasing the Vessel from any such arrest, seizure, custody, detention or distress.

                  

          

        

        Provided however that the Owners shall not be entitled to any indemnification or recompense
            pursuant to this Clause 61 for any liabilities, obligations, losses, damages, penalties, claims, actions, suits, fees, costs, expenses and disbursements incurred by the Owners as a consequence of any (A) wilful breach of this Charter by the
            Owners, or (B) arrest of the Vessel arising due to any action or omission on the part of the Owners.

        
          
            	

                  	(b)	
                    The Charterers shall pay to the Owners promptly on the Owners’ written demand the amount of all costs and expenses (including legal fees) incurred by the
                        Owners in connection with the enforcement of, or the preservation of any rights under, any Transaction Document including (without limitation) (i) any losses, costs and expenses which the Owners may from time to time sustain, incur
                        or become liable for by reason of the Owners being deemed by any court or authority to be an operator, or in any way concerned in the operation, of the Vessel and (ii) collecting and recovering the proceeds of any claim under any of
                        the Insurances.

                  

          

        

        
          
            	

                  	(c)	
                    Without prejudice to any right to damages or other claim which either Party may, at any time, have against the other hereunder, it is hereby agreed and
                        declared that the indemnities of the Owners by the Charterers contained in this Charter shall continue in full force and effect for a period of twenty four (24) months after the Agreement Term.

                  

          

        

        62.    Set-off

        
          
            	

                  	(a)	
                    The Owners may set off any matured and/or contingent obligation due from the Charterers under the Transaction Documents (to the extent beneficially owned
                        by the Owners) against any obligation (whether matured or not) owed by the Owners to the Charterers, regardless of the place of payment or currency of either obligation. If the

                  

          

        

        
          69

          
            

        

        

        

        obligations are in different currencies, the Owners may convert either obligation at a market
            rate of exchange in its usual course of business for the purpose of the set-off.

        
          
            	

                  	(b)	
                    The Charterers may not set off any matured and/or contingent obligation due from the Owners under the Transaction Documents (to the extent beneficially
                        owned by the Charterers) against any obligation (whether matured or not) owed by the Charterers to the Owners, regardless of the place of payment or currency of either obligation.

                  

          

        

        63.    Further assurances and undertakings

        
          
            	

                  	(a)	
                    Each Party shall make all applications and execute all other documents and do all other acts and things as may be necessary to implement and to carry out
                        their obligations under, and the intent of, this Charter.

                  

          

        

        
          
            	

                  	(b)	
                    The Parties shall act in good faith to each other in respect of any dealings or matters under, or in connection with, this Charter.

                  

          

        

        64.    Cumulative rights

        The rights, powers and remedies provided in this Charter are cumulative and not exclusive of any
            rights, powers or remedies at law or in equity unless specifically otherwise stated.

        65.    Day count convention

        Any interest, commission or fee accruing under a Transaction Document will accrue from day to day
            and is calculated on the basis of the actual number of days elapsed and a year of 360 days.

        66.    No waiver

        No delay, failure or forbearance by a party to exercise (in whole or in part) any right, power or
            remedy under, or in connection with, this Charter will operate as a waiver. No waiver of any breach of any provision of this Charter will be effective unless that waiver is in writing and signed by the Party against whom that waiver is claimed.
            No waiver of any breach will be, or be deemed to be, a waiver of any other or subsequent breach.

        67.    Entire agreement

        
          
            	

                  	(a)	
                    This Charter contains all the understandings and agreements of whatsoever kind and nature existing between the Parties in respect of this Charter, the
                        rights, interests, undertakings agreements and obligations of the Parties to this Charter and shall supersede all previous and contemporaneous negotiations and agreements.

                  

          

        

        
          
            	

                  	(b)	
                    This Charter may not be amended, altered or modified except by a written instrument executed by each of the Parties to this Charter.

                  

          

        

        68.    Invalidity

        If any term or provision of this Charter or the application thereof to any person or
            circumstances shall to any extent be invalid or unenforceable the remainder of this Charter or application of such term or provision to persons or circumstances (other than those as to which it is already invalid or unenforceable) shall (to the
            extent that such invalidity or unenforceability does not materially affect the operation of this Charter) not be affected

        
          70

          
            

        

        

        

        thereby and each term and provision of this Charter shall be valid and be enforceable to the
            fullest extent permitted by law.

        69.    English language

        All notices, communications and financial statements and reports under or in connection with this
            Charter and the other Transaction Documents shall be in English language or, if in any other language, shall be accompanied by a translation into English. In the event of any conflict between the English text and the text in any other language,
            the English text shall prevail.

        70.    No partnership

        Nothing in this Charter creates, constitutes or evidences any partnership, joint venture, agency,
            trust or employer/employee relationship between the Parties, and neither Party may make, or allow to be made any representation that any such relationship exists between the Parties. Neither Party shall have the authority to act for, or incur
            any obligation on behalf of, the other Party, except as expressly provided in this Charter.

        71.    Notices

        
          
            	

                  	(a)	
                    Any notices to be given to the Owners under this Charter shall be sent in writing by registered letter, facsimile or email and addressed to:

                  

          

        

        [ 
                                                                                                          ]

        	
                Address:

              	  [                                                 ]
                 

                  

              
	
                Fax No.:

              	  [                                                 ]
                 

                  

              
	
                Email:

              	
                [                                                  ]

                [                                                  ]

                [                                                  ]
                 

                  

              
	
                Attention:

              	 [                                                                 ]
                 

                  

              

        or to such other address, facsimile number or email address as the Owners may notify to the
            Charterers in accordance with this Clause 71.

        
          
            	

                  	(b)	
                    Any notices to be given to the Charterers under this Charter shall be sent in writing by registered letter, facsimile or email and addressed to:

                  

          

        

        Flex LNG Rainbow Limited

        Flex LNG Management AS

            Bryggegata 3

            0250 Oslo, Norway

            e-mail: finance@flexlng.com

        Att: Øystein Kalleklev

        
          71

          
            

        

        

        

        or to such other address, facsimile number or email address as the Charterers may notify to the
            Owners in accordance with this 71.

        
          
            	

                  	(c)	
                    Any such notice shall be deemed to have reached the Party to whom it was addressed, when dispatched and acknowledged received (in case of a facsimile or
                        an email) or when delivered (in case of a registered letter). A notice or other such communication received on a non-working day or after business hours in the place of receipt shall be deemed to be served on the next following
                        working day in such place

                  

          

        

        72.    Conflicts

        Unless stated otherwise, in the event of there being any conflict or inconsistency between the
            provisions of Clauses 1 (Definitions) (Part II) to 31 (Notices) (Part II) and the provisions of Clauses 32 (Definitions) to 79 (FATCA), the provisions of Clauses 32 (Definitions) to 79 (FATCA) shall prevail.

        73.    Survival of Charterers’ obligations

        The termination of this Charter for any cause whatsoever shall not affect the right of the Owners
            to recover from the Charterers any money due to the Owners on or before the termination in consequence thereof and all other rights of the Owners (including but not limited to any rights, benefits or indemnities which are expressly provided to
            continue after the termination of this Charter) are reserved hereunder.

        74.    Counterparts

        This Charter may be executed in any number of counterparts and any single counterpart or set of
            counterparts signed, in either case, by all the parties hereto shall be deemed to constitute a full and original agreement for all purposes.

        75.    Confidentiality

        
          
            	

                  	(a)	
                    The Parties shall maintain the information provided in connection with the Transaction Documents strictly confidential and agree to disclose to no person
                        other than:

                  

          

        

        
          
            	

                  	(i)	
                    its board of directors, employees (only on a need to know basis), and shareholders, professional advisors and rating agencies;

                  

          

        

        
          
            	

                  	(ii)	
                    as may be required to be disclosed under applicable law or regulations or for the purpose of legal proceedings or the rules of any relevant stock
                        exchange;

                  

          

        

        
          
            	

                  	(iii)	
                    in the case of the Owners, to any Finance Party or other actual or potential financier providing funding for the acquisition or refinancing of the Vessel;

                  

          

        

        
          
            	

                  	(iv)	
                    in the case of the Charterers, to any Sub-Charterer in respect of obtaining any consent required under the terms of any Sub-Charter; and

                  

          

        

        
          
            	

                  	(v)	
                    the shipbuilder and the managers, the classification society and flag authorities as may be necessary in connection with the transactions contemplated
                        hereunder.

                  

          

        

        
          
            	

                  	(b)	
                    Any other disclosure by each Party shall be subject to the prior written consent of the other Party.

                  

          

        

        
          72

          
            

        

        

        

        

        

        76.    Third Parties Act

        
          
            	

                  	(a)	
                    Any person which is an Indemnitee or a Finance Party from time to time and is not a party to this Charter shall be entitled to enforce such terms of this
                        Charter as provided for in this Charter in relation to the obligations of the Charterers to such Indemnitee or (as the case may be) Finance Party, subject to the provisions of Clause 77 (Law and jurisdiction) and the Third Parties Act. The Third Parties Act applies to this Charter as set out in this Clause 76.

                  

          

        

        
          
            	

                  	(b)	
                    Save as provided above, a person who is not a party to this Charter has no right under the Third Parties Act to enforce or to enjoy the benefit of any
                        term of this Charter.

                  

          

        

        77.    Law and jurisdiction

        
          
            	

                  	(a)	
                    This Charter and any non-contractual obligations arising from or in connection with it shall in all respects be governed by and interpreted in accordance
                        with English law.

                  

          

        

        
          
            	

                  	(b)	
                    Any dispute, controversy or claim arising out of or relating to this Charter, including the existence, validity, interpretation, performance, breach or
                        termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration in London in accordance with the Arbitration Act 1996 or any
                        statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause 77.

                  

          

        

        
          
            	

                  	(c)	
                    The arbitration shall be conducted in accordance with the London Maritime Arbitration Association (LMAA) terms current at the time when arbitration
                        proceedings are commenced.

                  

          

        

        
          
            	

                  	(d)	
                    The reference shall be to three (3) arbitrators. A Party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such
                        appointment in writing to the other Party requiring the other Party to appoint its own arbitrator within fourteen (14) calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other
                        Party appoints its own arbitrator and gives notice that it has done so within the fourteen (14) days specified. If the other Party does not appoint its own arbitrator and give notice that it has done so within the fourteen (14) days
                        specified, the Party referring a dispute to arbitration may, without the requirement of any further prior notice to the other Party, appoint its own arbitrator as sole arbitrator and shall advise the other Party accordingly. The
                        award of a sole arbitrator shall be binding on both Parties as if he had been appointed by agreement.

                  

          

        

        
          
            	

                  	(e)	
                    Nothing herein shall prevent the Parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator.

                  

          

        

        
          
            	

                  	(f)	
                    In cases where neither the claim nor any counterclaim exceeds the sum of US Dollars Fifty Thousand (US$50,000) (or such other sum as the Parties may
                        agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.

                  

          

        

        
          73

          
            

        

        

        

        78.    Conditions subsequent

        Notwithstanding anything to the contrary in this Charter, the obligations of the Owners to
            charter, or continue to charter, the Vessel to the Charterers under this Charter shall be subject to the conditions that:

        
          
            	

                  	(a)	
                    the Owners shall have received the following documents and evidence in form and substance satisfactory to the Owners no later than three (3) Business Days
                        after the Delivery Date:

                  

          

        

        
          
            	

                  	(i)	
                    a copy of the endorsed policy issued by the insurer in respect of the Vessel;

                  

          

        

        
          
            	

                  	(ii)	
                    a copy of the duly signed letter of undertaking issued by all the relevant underwriters or insurance brokers in respect of the Vessel;

                  

          

        

        
          
            	

                  	(iii)	
                    the Vessel’s current SMC (as such term is defined pursuant to the ISM Code);

                  

          

        

        
          
            	

                  	(iv)	
                    the Approved Manager’s current Document of Compliance (as such term is defined pursuant to the ISM Code);

                  

          

        

        
          
            	

                  	(v)	
                    the Vessel’s current ISSC; (vi) the Vessel’s current IAPPC;

                  

          

        

        
          
            	

                  	(vi)	
                    the Vessel’s classification confirmation certificate evidencing that it is free of all recommendations and requirements from the Classification Society;
                        and

                  

          

        

        
          
            	

                  	(vii)	
                    the bill of sale, the builder’s certificate, the declaration of warranty and the commercial invoice in respect of the Vessel issued by the Builders;

                  

          

        

        
          
            	

                  	(b)	
                    to the extent that the Sub-Charter requires prior written consent from the Sub- Charterers before the Charterers may conduct an assignment under the
                        Charterers’ Assignment, the Charterers shall procure to be delivered to the Owners an original of the duly executed acknowledgement by the Sub-Charterers in accordance with the Charterers Assignment no later than fourteen (14)
                        calendar days after the Delivery Date; and

                  

          

        

        
          
            	

                  	(c)	
                    the Charterers and the Shareholder shall execute the undertaking(s) or deed(s) set out in Clause 49(r)(i)(B) on or before (14) calendar days after the
                        Delivery Date.

                  

          

        

        80.    FATCA

        
          
            	

                  	(a)	
                    Defined terms

                  

          

        

        For the purposes of this Clause 79 (FATCA), the following terms shall have the following meanings:

        “Code”
            means the United States Internal Revenue Code of 1986, as amended.

        “FATCA”
            means sections 1471 through 1474 of the Code and any Treasury regulations thereunder.

        
          74

          
            

        

        

        

        “FATCA

              Deduction” means a deduction or withholding from a payment under the Transaction Documents or the Project Documents required by or under FATCA.

        “FATCA

              Exempt Party” means a Relevant Party that is entitled under FATCA to receive payments free from any FATCA Deduction.

        “FATCA

              FFI” means a foreign financial institution as defined in section 1471(d)(4) of the Code which, if a Relevant Party is not a FATCA Exempt Party, could be required to make a FATCA Deduction.

        “FATCA

              Non-Exempt Party” means any Relevant Party who is not a FATCA Exempt Party.

        “Relevant

              Party” means any of the parties to the Transaction Documents.

        “IRS”
            means the United States Internal Revenue Service or any successor taxing authority or agency of the United States government.

        
          
            	

                  	(b)	
                    FATCA Information

                  

          

        

        
          
            	

                  	(i)	
                    Subject to paragraph (iii) below, each Relevant Party shall, on the date of this Charter, and thereafter within ten (10) Business Days of a reasonable
                        request by another Relevant Party:

                  

          

        

        
          
            	

                  	(A)	
                    confirm to that other party whether it is a FATCA Exempt Party or is not a FATCA Exempt Party; and

                  

          

        

        
          
            	

                  	(B)	
                    supply to the requesting party (with a copy to all other Relevant Parties) such other form or forms (including IRS Form W-8 or Form W-9 or any successor
                        or substitute form, as applicable) and any other documentation and other information relating to its status under FATCA (including its applicable “pass thru percentage” or other information required under FATCA or other official
                        guidance including intergovernmental agreements) as the requesting party reasonably requests for the purpose of the requesting party’s compliance with FATCA.

                  

          

        

        
          
            	

                  	(ii)	
                    If a Relevant Party confirms to any other Relevant Party that it is a FATCA Exempt Party or provides an IRS Form W-8 or W-9 showing that it is a FATCA
                        Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that party shall so notify all other Relevant Parties reasonably promptly.

                  

          

        

        
          
            	

                  	(iii)	
                    Nothing in this Clause 74 (FATCA) shall oblige any Relevant Party to do anything which would or, in its reasonable opinion, might constitute a breach of
                        any law or regulation, any policy of that party, any fiduciary duty or any duty of confidentiality, or to disclose any confidential information (including, without limitation, its tax returns and calculations); provided, however,
                        that nothing in this paragraph shall excuse any Relevant Party from providing a true, complete and correct IRS Form W-8 or W-9 (or any successor or substitute form where applicable). Any information provided on such IRS Form W-8 or
                        W-9 (or any successor or substitute forms) shall not be treated as confidential information of such party for purposes of this paragraph.

                  

          

        

        
          75

          
            

        

        

        

        
          
            	

                  	(iv)	
                    If a Relevant Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with the provisions of this
                        Charter or the provided information is insufficient under FATCA, then:

                  

          

        

        
          
            	

                  	(A)	
                    if that party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such party shall be treated for the purposes of the Transaction
                        Documents as if it is a FATCA Non-Exempt Party; and

                  

          

        

        
          
            	

                  	(B)	
                    if that party failed to confirm its applicable passthru percentage then such party shall be treated for the purposes of this Charter and the Transaction
                        Documents (and payments made thereunder) as if its applicable passthru percentage is 100%,

                  

          

        

        until (in each case) such time as the party in question provides sufficient confirmation, forms,
            documentation or other information to establish the relevant facts.

        
          
            	

                  	(c)	
                    FATCA Deduction and gross-up by Relevant Party

                  

          

        

        
          
            	

                  	(i)	
                    If the representation made by the Charterers under Clause 48 (Charterers’ representations and warranties) proves to be untrue or misleading such that the
                        Charterers are required to make a FATCA Deduction, the Charterers shall make the FATCA Deduction and any payment required in connection with that FATCA Deduction within the time allowed and in the minimum amount required by FATCA.

                  

          

        

        
          
            	

                  	(ii)	
                    If the Charterers are required to make a FATCA Deduction then the Charterers shall increase the payment due from them to the Owners to an amount which
                        (after making any FATCA Deduction) leaves an amount equal to the payment which would have been due if no FATCA Deduction had been required.

                  

          

        

        
          
            	

                  	(iii)	
                    The Charterers shall promptly upon becoming aware that they must make a FATCA Deduction (or that there is any change in the rate or basis of a FATCA
                        Deduction) notify the Owners accordingly. Within thirty (30) days of the Charterers making either a FATCA Deduction or any payment required in connection with that FATCA Deduction, the Charterers shall deliver to the Owners evidence
                        reasonably satisfactory to the Owners that the FATCA Deduction has been made or (as applicable) any appropriate payment paid to the relevant governmental or taxation authority.

                  

          

        

        
          
            	

                  	(iv)	
                    If the Owners are required to make a deduction or withholding from a payment under the Finance Documents in respect of FATCA, which deduction or
                        withholding would not have been required if a Relevant Person were not a US Tax Obligor or FATCA FFI, and are required under the Finance Documents (if any) to pay additional amounts in respect of such deduction or withholding, the
                        amount of the payment due from the Charterers shall be increased to an amount which, after any such deduction or withholding and payment of additional amounts, leaves the Owners with an amount equal to the amount which it would have
                        had remaining if it had not been required to pay additional amounts under such Finance Documents.

                  

          

        

        
          76

          
            

        

        

        

        
          
            	

                  	(d)	
                    FATCA Deduction by Owners

                  

          

        

        The Owners may make any FATCA Deduction they are required by FATCA to make, and any payment
            required in connection with that FATCA Deduction, and the Owners shall not be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient for that FATCA Deduction.

        

          

        

        
          77

          
            

        

        

        

        SCHEDULE 1

            FORM OF PROTOCOL OF DELIVERY AND ACCEPTANCE

        

        

        PROTOCOL OF DELIVERY AND ACCEPTANCE

        

        

        It is hereby certified that pursuant to a bareboat charter dated                          and made between [                                                                                                                                                       ] (the “Owners”) as owner and Flex LNG Rainbow Limited of The Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 (the “Bareboat Charterers”) as bareboat charterer (as maybe amended and supplemented from time to time, the “Bareboat Charter”) in respect of one (1) vessel named “FLEX RAINBOW “ and registered under the laws and flag of the Marshall Islands with IMO number 9709037 (the “Vessel”), the Vessel is delivered for charter by the Owners to the Bareboat Charterers, and accepted by the Bareboat Charterers from the Owners
            at hours ([●] time) on the date hereof in accordance with the terms and conditions of the Bareboat Charter.

        

        

        IN WITNESS WHEREOF, the Owners and the Bareboat Charterers have caused this PROTOCOL OF DELIVERY AND ACCEPTANCE to be executed by their
            duly authorised representative on this            day of                      20[●] in [●].

        

        

        	
                THE OWNERS

              	 	
                THE BAREBOAT CHARTERERS

              
	 	 	 
	
                by:

              	 	
                by:

              
	 	 	 
	 	 	 
	 	 	 
	
                Name:

              	 	
                Name:

              
	
                Title:

              	 	
                Title:

              
	
                Date:

              	 	
                Date:

              
	 	 	 
	 	 	 

        
          78

          
            

        

        

        

        SCHEDULE 2

            FORM OF TITLE TRANSFER PROTOCOL OF DELIVERY AND ACCEPTANCE

        

        

        PROTOCOL OF DELIVERY AND ACCEPTANCE

        

        

        Vessel “FLEX RAINBOW “

        

        

        [                                                                                                                                                                                                           ]
            (the “Owners”) deliver to Flex LNG Rainbow Limited, a corporation incorporated under the laws of the Republic of the Marshall Islands with
            registration number 90438 and its registered office at The Trust Company, Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the “Bareboat Charterers”) the Vessel described below and the Bareboat Charterers accept delivery of, title and risk to the Vessel pursuant to the terms and conditions of the bareboat charterer dated                         2018 (as may be amended and supplemented from time to time) and made between (1) the Owners and (2) the Bareboat Charterers.

        

        

        	
                Name of Vessel:

              	
                “FLEX RAINBOW “

              
	 	 
	
                Flag:

              	
                Marshall Islands

              
	 	 
	
                Place of Registration:

              	
                Maujoro

              
	 	 
	
                IMO Number:

              	
                9709037

              
	 	 
	
                Gross Registered Tonnage:

              	
                115,174 tons

              
	 	 
	
                Net Registered Tonnage:

              	
                34,860 tons

              
	 	 
	
                Dated:

              	
                20[●]

              
	 	 
	
                At:

              	
                hours ([●] time)

              

        

        

        Place of delivery:

        

        

        	
                THE OWNER

              	 	
                THE BAREBOAT CHARTERER

              
	 	 	 
	 [                                                                                                 
                        ] 	 	
                Flex LNG Rainbow Limited

              
	 	 	 
	 	 	 
	
                by:

              	 	
                by:

              
	 	 	 
	 	 	 
	 	 	 
	
                Name:

              	 	
                Name:

              
	
                Title:

              	 	
                Title:

              
	
                Date:

              	 	
                Date:

              
	 	 	 
	 	 	 

        

        

        
          79

          
            

        

        

        

        SCHEDULE 3

            HIRE PAYMENT SCHEDULE

        

        

        (Note: Schedule prepared on the assumption that LIBOR is 3.0% per annum)

        	
                INSTALMENT NO.

              	
                HIRE PAYMENT DATE

              	
                HIRE PAYMENT

              	
                FIXED HIRE

              	
                VARIABLE HIRE*

              	
                COST BALANCE

                157,500,000

              
	
                1

              	
                2018/10/15

              	
                4,585,000.00

              	
                1,968,750.00

              	
                2,616,250.00

              	
                155,531,250.00

              
	
                2

              	
                2019/1/15

              	
                4,552,296.88

              	
                1,968,750.00

              	
                2,583,546.88

              	
                153,562,500.00

              
	
                3

              	
                2019/4/15

              	
                4,464,140.63

              	
                1,968,750.00

              	
                2,495,390.63

              	
                151,593,750.00

              
	
                4

              	
                2019/7/15

              	
                4,459,519.53

              	
                1,968,750.00

              	
                2,490,769.53

              	
                149,625,000.00

              
	
                5

              	
                2019/10/15

              	
                4,454,187.50

              	
                1,968,750.00

              	
                2,485,437.50

              	
                147,656,250.00

              
	
                6

              	
                2020/1/15

              	
                4,421,484.38

              	
                1,968,750.00

              	
                2,452,734.38

              	
                145,687,500.00

              
	
                7

              	
                2020/4/15

              	
                4,362,476.56

              	
                1,968,750.00

              	
                2,393,726.56

              	
                143,718,750.00

              
	
                8

              	
                2020/7/15

              	
                4,330,128.91

              	
                1,968,750.00

              	
                2,361,378.91

              	
                141,750,000.00

              
	
                9

              	
                2020/10/15

              	
                4,323,375.00

              	
                1,968,750.00

              	
                2,354,625.00

              	
                139,781,250.00

              
	
                10

              	
                2021/1/15

              	
                4,290,671.88

              	
                1,968,750.00

              	
                2,321,921.88

              	
                137,812,500.00

              
	
                11

              	
                2021/4/15

              	
                4,208,203.13

              	
                1,968,750.00

              	
                2,239,453.13

              	
                135,843,750.00

              
	
                12

              	
                2021/7/15

              	
                4,200,738.28

              	
                1,968,750.00

              	
                2,231,988.28

              	
                133,875,000.00

              
	
                13

              	
                2021/10/15

              	
                4,192,562.50

              	
                1,968,750.00

              	
                2,223,812.50

              	
                131,906,250.00

              
	
                14

              	
                2022/1/15

              	
                4,159,859.38

              	
                1,968,750.00

              	
                2,191,109.38

              	
                129,937,500.00

              
	
                15

              	
                2022/4/15

              	
                4,080,234.38

              	
                1,968,750.00

              	
                2,111,484.38

              	
                127,968,750.00

              
	
                16

              	
                2022/7/15

              	
                4,071,347.66

              	
                1,968,750.00

              	
                2,102,597.66

              	
                126,000,000.00

              
	
                17

              	
                2022/10/15

              	
                4,061,750.00

              	
                1,968,750.00

              	
                2,093,000.00

              	
                124,031,250.00

              
	
                18

              	
                2023/1/15

              	
                4,029,046.88

              	
                1,968,750.00

              	
                2,060,296.88

              	
                122,062,500.00

              
	
                19

              	
                2023/4/15

              	
                3,952,265.63

              	
                1,968,750.00

              	
                1,983,515.63

              	
                120,093,750.00

              
	
                20

              	
                2023/7/15

              	
                3,941,957.03

              	
                1,968,750.00

              	
                1,973,207.03

              	
                118,125,000.00

              
	
                21

              	
                2023/10/15

              	
                3,930,937.50

              	
                1,968,750.00

              	
                1,962,187.50

              	
                116,156,250.00

              
	
                22

              	
                2024/1/15

              	
                3,898,234.38

              	
                1,968,750.00

              	
                1,929,484.38

              	
                114,187,500.00

              
	
                23

              	
                2024/4/15

              	
                3,844,914.06

              	
                1,968,750.00

              	
                1,876,164.06

              	
                112,218,750.00

              
	
                24

              	
                2024/7/15

              	
                3,812,566.41

              	
                1,968,750.00

              	
                1,843,816.41

              	
                110,250,000.00

              
	
                25

              	
                2024/10/15

              	
                3,800,125.00

              	
                1,968,750.00

              	
                1,831,375.00

              	
                108,281,250.00

              
	
                26

              	
                2025/1/15

              	
                3,767,421.88

              	
                1,968,750.00

              	
                1,798,671.88

              	
                106,312,500.00

              
	
                27

              	
                2025/4/15

              	
                3,696,328.13

              	
                1,968,750.00

              	
                1,727,578.13

              	
                104,343,750.00

              
	
                28

              	
                2025/7/15

              	
                3,683,175.78

              	
                1,968,750.00

              	
                1,714,425.78

              	
                102,375,000.00

              
	
                29

              	
                2025/10/15

              	
                3,669,312.50

              	
                1,968,750.00

              	
                1,700,562.50

              	
                100,406,250.00

              
	
                30

              	
                2026/1/15

              	
                3,636,609.38

              	
                1,968,750.00

              	
                1,667,859.38

              	
                98,437,500.00

              
	
                31

              	
                2026/4/15

              	
                3,568,359.38

              	
                1,968,750.00

              	
                1,599,609.38

              	
                96,468,750.00

              
	
                32

              	
                2026/7/15

              	
                3,553,785.16

              	
                1,968,750.00

              	
                1,585,035.16

              	
                94,500,000.00

              
	
                33

              	
                2026/10/15

              	
                3,538,500.00

              	
                1,968,750.00

              	
                1,569,750.00

              	
                92,531,250.00

              
	
                34

              	
                2027/1/15

              	
                3,505,796.88

              	
                1,968,750.00

              	
                1,537,046.88

              	
                90,562,500.00

              
	
                35

              	
                2027/4/15

              	
                3,440,390.63

              	
                1,968,750.00

              	
                1,471,640.63

              	
                88,593,750.00

              
	
                36

              	
                2027/7/15

              	
                3,424,394.53

              	
                1,968,750.00

              	
                1,455,644.53

              	
                86,625,000.00

              
	
                37

              	
                2027/10/15

              	
                3,407,687.50

              	
                1,968,750.00

              	
                1,438,937.50

              	
                84,656,250.00

              
	
                38

              	
                2028/1/15

              	
                3,374,984.38

              	
                1,968,750.00

              	
                1,406,234.38

              	
                82,687,500.00

              
	
                39

              	
                2028/4/15

              	
                3,327,351.56

              	
                1,968,750.00

              	
                1,358,601.56

              	
                80,718,750.00

              
	
                40

              	
                2028/7/15

              	
                3,295,003.91

              	
                1,968,750.00

              	
                1,326,253.91

              	
                78,750,000.00

              
	 	 	 	 	 	 

        

        

        

        

        
          80

          
            

        

        

        

        SCHEDULE 4

        SCHEDULE OF PURCHASE OPTION PRICE

        (Note: Subject to the Owners’ confirmation by reference
            to the figure to be provided by the Owners upon the fixing of the delivery or closing date in accordance with such early purchase of the Vessel.)

        “Flex Rainbow”

        	
                Date (corresponding to a Hire Payment Date)

              	
                Purchase Option Price

              	
                Hire payment

              	 	 	 	 
	
                2020/10/15

              	
                139,781,250.00

              	
                4,323,375.00

              	 	 	 	 
	
                2021/1/15

              	
                137,812,500.00

              	
                4,290,671.88

              	 	 	 	 
	
                2021/4/15

              	
                135,843,750.00

              	
                4,208,203.13

              	 	 	 	 
	
                2021/7/15

              	
                133,875,000.00

              	
                4,200,738.28

              	 	 	 	 
	
                2021/10/15

              	
                131,906,250.00

              	
                4,192,562.50

              	 	 	 	 
	
                2022/1/15

              	
                129,937,500.00

              	
                4,159,859.38

              	 	 	 	 
	
                2022/4/15

              	
                127,968,750.00

              	
                4,080,234.38

              	 	 	 	 
	
                2022/7/15

              	
                126,000,000.00

              	
                4,071,347.66

              	 	 	 	 
	
                2022/10/15

              	
                124,031,250.00

              	
                4,061,750.00

              	 	 	 	 
	
                2023/1/15

              	
                122,062,500.00

              	
                4,029,046.88

              	 	 	 	 
	
                2023/4/15

              	
                120,093,750.00

              	
                3,952,265.63

              	 	 	 	 
	
                2023/7/15

              	
                118,125,000.00

              	
                3,941,957.03

              	 	 	 	 
	
                2023/10/15

              	
                116,156,250.00

              	
                3,930,937.50

              	 	 	 	 
	
                2024/1/15

              	
                114,187,500.00

              	
                3,898,234.38

              	 	 	 	 
	
                2024/4/15

              	
                112,218,750.00

              	
                3,844,914.06

              	 	 	 	 
	
                2024/7/15

              	
                110,250,000.00

              	
                3,812,566.41

              	 	 	 	 
	
                2024/10/15

              	
                108,281,250.00

              	
                3,800,125.00

              	 	 	 	 
	
                2025/1/15

              	
                106,312,500.00

              	
                3,767,421.88

              	 	 	 	 
	
                2025/4/15

              	
                104,343,750.00

              	
                3,696,328.13

              	 	 	 	 
	
                2025/7/15

              	
                102,375,000.00

              	
                3,683,175.78

              	 	 	 	 
	
                2025/10/15

              	
                100,406,250.00

              	
                3,669,312.50

              	 	 	 	 
	
                2026/1/15

              	
                98,437,500.00

              	
                3,636,609.38

              	 	 	 	 
	
                2026/4/15

              	
                96,468,750.00

              	
                3,568,359.38

              	 	 	 	 
	
                2026/7/15

              	
                94,500,000.00

              	
                3,553,785.16

              	 	 	 	 
	
                2026/10/15

              	
                92,531,250.00

              	
                3,538,500.00

              	 	 	 	 
	
                2027/1/15

              	
                90,562,500.00

              	
                3,505,796.88

              	 	 	 	 
	
                2027/4/15

              	
                88,593,750.00

              	
                3,440,390.63

              	 	 	 	 
	
                2027/7/15

              	
                86,625,000.00

              	
                3,424,394.53

              	 	 	 	 
	
                2027/10/15

              	
                84,656,250.00

              	
                3,407,687.50

              	 	 	 	 
	
                2028/1/15

              	
                82,687,500.00

              	
                3,374,984.38

              	 	 	 	 
	
                2028/4/15

              	
                80,718,750.00

              	
                3,327,351.56

              	 	 	 	 

        

        

        
          81

          
            

        

        

        

        SIGNATURE PAGE

        

        

        ADDITIONAL CLAUSES

        TO BAREBOAT CHARTER FOR

        “FLEX RAINBOW”

        

        

        

        

        	
                THE OWNER

              	 	
                THE CHARTERERS

              
	 	 	 
	 [                                                                                                   
                  ] 	 	
                Flex LNG Rainbow Limited

              
	 	 	 
	 	 	 
	
                by:

              	 	
                by:

              
	 	 	 
	 	 	 
	 	 	 
	
                Name:  [                                                 
                    ]

              	 	
                Name:

              
	
                Title:    [                                                 
                    ]

              	 	
                Title:

              
	
                Date:

              	 	
                Date:

              
	 	 	 
	 	 	 

        

        

        

        

        
          
            

        

        
        

        

        

        

        

        

        

        

        

        

        

        

      

    

    

    

    

    

    

    

    

    

    
      83

      
        

    

    
      MEMORANDUM OF AGREEMENT

      	
               

            	
              Norwegian Shipbrokers’ Association’s

            
	
               

            	
              Memorandum of Agreement  for sale and

            
	
               

            	
              purchase of ships. Adopted by BIMCO in 1956.

            
	
               

            	
              Code-name

            
	
               

            	
              SALEFORM 2012

            
	
               

            	
              Revised 1966, 1983 and 1986/87, 1993 and 2012

            

       

      [                                                  ]

      

      

      [                                                                                                                                                    ]

      [                                                                                                                                                      ]

      

      

      Name of vessel:  Flex Rainbow

      

      

      IMO Number:  9709037

       

      Classification Society:  American Bureau of
            Shipping

       

      Class Notation:  A1, Liquefied Gas Carrier,
            (E), AMS, ACCU, APS, SH, CPS, SHCM

      

      

      	
              Year of Build: 2018

            	
              Builder/Yard:  Samsung Heavy Industry
                    Co. Ltd, Korea 

            
	
               

            	
               

            	
               

            
	
              Flag:  Marshall Islands

            	
              Place of Registration:  Majuro

            	
              GT/NT:  115,174/34,860

            

       

      hereinafter called the “Vessel”, on the following terms and conditions:

      Definitions

      “Banking Days” are days on which banks are open both in the country of the currency stipulated for the Purchase Price in
          Clause 1 (Purchase Price) and in the place of closing stipulated in Clause
              8 (Documentation) and Hong Kong, Shanghai,
            Oslo and New York (add additional
            jurisdictions as appropriate).

      “Buyers’ Nominated Flag State” means Marshall Islands (state flag state).

      “Class” means the class notation referred to above.

      “Classification Society” means the Classification
          Society referred to above.

      “Deposit” shall have the meaning
              given in Clause 2 (Deposit)

      “Deposit Holder” means _________ (state name and location of Deposit Holder) or, if left blank,
              the Sellers’ Bank, which shall hold and release the Deposit in accordance with this Agreement.

      “In writing” or “written” means a letter handed over from the Sellers to the Buyers or vice versa, a registered letter,
          e-mail or telefax.

      “Parties” means the Sellers and the Buyers.

      “Purchase Price” means the price for the Vessel as stated in Clause 1 (Purchase Price).

      “Sellers’ Account” means _________ (state details of bank account) at the Seller’s Bank.

      “Sellers’ Bank” means _________

          (state name of bank, branch and details) or, if left blank, the bank notified by the Sellers to the Buyers for receipt of the balance of the Purchase Price.

      
        
          	1.	
                  Purchase Price

                

        

      

      The Purchase Price is US Dollars Two Hundred and Ten Million (US$210,000,000) (state currency and amount both in words and figures).  See also Additional Clause 20.

      
        
          	2.	
                  Deposit

                

        

      

      As security for
              the correct fulfilment of this Agreement the Buyers shall lodge a deposit of __% (__ per cent) or, if left blank, 10% (ten per cent), of the Purchase Price (the “Deposit”) in an interest bearing account for the Parties with the Deposit Holder within three (3)
              Banking Days after the date that:

      
        
          	

                	(i)	
                  this Agreement has been signed by the Parties and exchanged in original
                          or by e-mail or telefax; and

                

        

      

      
        
          	

                	(ii)	
                  the Deposit Holder has confirmed in writing to the Parties that the
                          account  has

                          been opened.

                

        

      

      The Deposit shall be released in
              accordance with joint written instructions of the Parties’.  Interest, if any, shall be credited to the Buyers.  Any fee charged for holding and releasing the

      

      

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian
          Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall
          apply. BIMCO and the Norwegian Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        
          

      

      
      

      

      Deposit shall be
              borne equally by the Parties.  The Parties shall provide to the Deposit Holder all necessary documentation to open and maintain the account without delay.

      
        
          	3.	
                  Payment  See Additional Clause 21 (Payment of the
                          Purchase Price)

                

        

      

      On delivery of
              the Vessel, but not later than three (3) Banking Days after the date that Notice of Readiness has been given in accordance with Clause 5 (Time and place of delivery and notices):

      
        
          	

                	(i)	
                  the Deposit shall be released to the Sellers; and

                

        

      

      
        
          	

                	(ii)	
                  the balance of the Purchase Price and all other sums payable on
                          delivery by the Buyers to the Sellers under this Agreement shall be paid in full free of bank charges to the Sellers’ Account.

                

        

      

      
        
          	4.	
                  Inspection

                

        

      

      (a)* The Buyers have inspected and accepted the Vessel’s classification records.  The Buyers have also inspected the Vessel at/in ________ (state place) on __________ (state date) and have accepted the Vessel following this inspection and the sale is outright and definite, subject only to the terms and conditions of this Agreement.

      (b)* The Buyers shall have the right to inspect the Vessels
              classification records and declare whether same are accepted or not within _______ (State date/period).

      The Sellers shall
              make the Vessel available for inspection at/in _______ (state place/range) within ______ (state date/period).

      The Buyers shall
              undertake the inspection without undue delay to the Vessel. Should the Buyers cause undue delay they shall compensate the Sellers for the losses thereby incurred.

      The Buyers shall
              inspect the Vessel without opening up and without cost to the Sellers.

      During the
              inspection, the Vessel’s dock and engine log books shall be made available for examination by the Buyers.

      The Sale shall
              become outright and definite, subject only to the terms and conditions of this Agreement, provided that the Sellers receive written notice of acceptance of the Vessel from the Buyers within seventy two (72) hours after completion of such
              inspection or after the date/last day of the period stated in Line 59, whichever is earlier.

      Should the Buyers
              fail to undertake the inspection as scheduled and/or notice of acceptance of the Vessel’s classification records and/or of the Vessel not be received by the Sellers as aforesaid, the Deposit together with interest earned, if any, shall be
              released immediately to the Buyers, whereafter this Agreement shall be null and void.

      *4(a) and 4(b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 4(a) shall apply.

      
        
          	5.	
                  Time and place of delivery and notices

                

        

      

      (a) 

            The Vessel shall be delivered and taken over safely afloat at a safe and always accessible berth or anchorage at/in ________ (state place/range) in the Sellers’ option.

      Notice of
              Readiness shall not be tendered before: ________ (date).

      Cancelling Date 
              (see Clauses 5(c), 6 (a)(i), 6
                (a) (iii) and 14): 210 days from 9 July 2018 or such later date as
            the Buyers may agree.

      (b) The Sellers shall keep the Buyers well informed of the Vessel’s itinerary and shall provide the Buyers with twenty (20), ten (10), five (5) and three (3) days’
              notice of the date the Sellers intend to tender Notice of Readiness and of the intended place of delivery.

      When the Vessel
              is at the place of delivery and physically ready for delivery in accordance with this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.

      (c)  If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, the Vessel will not be ready for delivery by the Cancelling Date they may
              notify the Buyers in writing stating the date when they anticipate that the Vessel will be ready for delivery and proposing a new Cancelling Date. Upon receipt of such notification the Buyers shall have the option of either cancelling this
              Agreement in accordance with Clause 14
              (Sellers’ Default) within three (3) Banking Days of receipt of the notice or of accepting the new date as the new Cancelling Date. If the Buyers have not declared their option within three (3) Banking Days of receipt of the Sellers’
              notification or if the Buyers accept the new date, the date proposed in the Sellers’ notification shall be deemed to be the new Cancelling Date and shall be substituted for the

      

      

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        2

        
          

      

      

      

      Cancelling Date
              stipulated in line 79.

      If this Agreement
              is maintained with the new Cancelling Date all other terms and conditions hereof including those contained in Clauses 5(b) and 5(d) shall remain unaltered and in full force and effect.

      (d) Cancellation, failure to cancel or acceptance of the new Cancelling Date shall be entirely without prejudice to any claim for damages the Buyers may have under Clause 14 (Sellers’ Default) for the Vessel not being ready by
              the original Cancelling Date.

      (e)  Should the Vessel become an actual, constructive or compromised total loss before delivery the Deposit together with interest earned, if any, shall be released
              immediately to the Buyers whereafter this Agreement shall be null and void. 

      
        
          	6.	
                  Divers Inspection / Drydocking

                

        

      

      (a)*

      
        
          	

                	(i)	
                  The Buyers shall have the option at their cost and expense to arrange
                          for an underwater inspection by a diver approved by the Classification Society prior to the delivery of the Vessel. Such option shall be declared latest nine (9) days prior to the Vessel’s intended date of readiness for delivery
                          as notified by the Sellers pursuant to Clause 5(b) of this Agreement. The Sellers shall at their cost and expense make the Vessel available for such inspection. This inspection shall be carried out without undue delay and in the presence of a Classification Society surveyor
                          arranged for by the Sellers and paid for by the Buyers. The Buyers’ representative(s) shall have the right to be present at the diver’s inspection as observer(s) only without interfering with the work or decisions of the
                          Classification Society surveyor. The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of the Classification Society. If the conditions at the place of delivery are unsuitable for
                          such inspection, the Sellers shall at their cost and expense make the Vessel available at a suitable alternative place near to the delivery port, in which event the Cancelling Date shall be extended by the additional time required
                          for such positioning and the subsequent re-positioning. The Sellers may not tender Notice of Readiness prior to completion of the underwater inspection.

                

        

      

      
        
          	

                	(ii)	
                  If the rudder, propeller, bottom or other underwater parts below the
                          deepest load line are found broken, damaged or defective so as to affect the Vessel’s class, then (1) unless repairs can be carried out afloat to the satisfaction of the Classification Society, the Sellers shall arrange for the
                          Vessel to be drydocked at their expense for inspection by the Classification Society of the Vessel’s underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Society’s
                          rules (2) such defects shall be made good by the Sellers at their cost and expense to the satisfaction of the Classification Society without condition/recommendation** and (3) the Sellers shall pay for the underwater inspection
                          and the Classification Society’s attendance.

                

        

      

      Notwithstanding
              anything to the contrary in this Agreement, if the Classification Society do not require the aforementioned defects to be rectified before the next class drydocking survey, the Sellers shall be entitled to deliver the Vessel with these
              defects against a deduction from the Purchase Price of the estimated direct cost (of labour and materials) of carrying out the repairs to the satisfaction of the Classification Society, whereafter the Buyers shall have no further rights
              whatsoever in respect of the defects and/or repairs. The estimated direct cost of the repairs shall be the average of quotes for the repair work obtained from two reputable independent shipyards at or in the vicinity of the port of delivery,
              one to be obtained by each of the Parties within two (2) Banking Days from the date of the imposition of the condition/recommendation, unless the Parties agree otherwise. Should either of the Parties fail to obtain such a quote within the
              stipulated time then the quote duly obtained by the other Party shall be the sole basis for the estimate of the direct repair costs. The Sellers may not tender Notice of Readiness prior to such estimate having been established.

      
        
          	

                	(iii)	
                  If the Vessel is to be drydocked pursuant to Clause 6(a)(ii) and no suitable dry-docking facilities are available at the
                          port of delivery, the Sellers shall take the Vessel to a port where suitable drydocking facilities are available, whether within or outside the delivery range as per Clause 5(a). Once drydocking has taken place the Sellers shall deliver the Vessel at a port within the delivery
                          range as per Clause 5(a) which shall,
                          for the purpose of this Clause, become the new port of delivery. In such event the Cancelling Date shall be extended by the additional time required for the drydocking and extra steaming, but limited to a maximum of fourteen (14)
                          twenty (20) days.

                

        

      

      (b) * The Sellers shall place the Vessel in drydock at the port of delivery for inspection by the

      

      

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        3

        
          

      

      

      

      Classification
              Society of the Vessel’s underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Society’s rules. If the rudder, propeller, bottom or other underwater parts below the deepest load
              line are found broken, damaged or defective so as to affect the Vessel’s class, such defects shall be made good at the Sellers’ cost and expense to the satisfaction of the Classification Society without condition/recommendation**. In such event the Sellers are also to pay for the costs and
              expenses in connection with putting the Vessel in and taking her out of drydock, including the drydock dues and the Classification Society’s fees. The Sellers shall also pay for these costs and expenses if parts of the tailshalft system are
              condemned or found defective or broken so as to affect the Vessel’s class. In all other cases, the Buyers shall pay the aforesaid costs and expenses, dues and fees.

      (c)

            If the Vessel is drydocked pursuant to Clause 6(a)(ii) or 6(b) above:

      
        
          	

                	(i)	
                  The Classification Society may require survey of the tailshaft system,
                          the extent of the survey being to the satisfaction of the Classification surveyor. If such survey is not required by the Classification Society, the Buyers shall have the option to require the tailshaft to be drawn and surveyed by
                          the Classification Society, the extent of the survey being in accordance with the Classification Society’s rules for tailshaft survey and consistent with the current stage of the Vessel’s survey cycle. The Buyers shall declare
                          whether they require the tailshaft to be drawn and surveyed not later than by the completion of the inspection by the Classification Society. The drawing and refitting of the tailshaft shall be arranged by the Sellers. Should any
                          part of the tailshaft system be condemned or found defective so as to affect the Vessel’s class, those parts shall be renewed or made good at the Sellers’ cost and expense to the satisfaction of Classification Society without
                          condition/recommendation**.

                

        

      

      
        
          	

                	(ii)	
                  The costs and expenses relating to the survey of the tailshaft system
                          shall be borne by the Buyers unless the Classification Society requires such survey to be carried out or if parts of the system are condemned or found defective or broken so as to affect the Vessel’s class, in which case the
                          Sellers shall pay these costs and expenses.

                

        

      

      
        
          	

                	(iii)	
                  The Buyers’ representative(s) shall have the right to be present in the
                          drydock, as observer(s) only without interfering with the work or decisions of the Classification Society surveyor.

                

        

      

      
        
          	

                	(iv)	
                  The Buyers shall have the right to have the underwater parts of the
                          Vessel cleaned and painted at their risk, cost and expense without interfering with the Seller’s or the Classification Society surveyor’s work, if any, and without affecting the Vessel’s timely delivery.  If, however, the Buyers’
                          work in drydock is still in progress when the Sellers have completed the work which the Sellers are required to do, the additional docking time needed to complete the Buyers’ work shall be for the Buyers’ risk, cost and expense.
                          In the event that the Buyers’ work required such additional time, the Sellers may upon completion of the Sellers’ work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and, notwithstanding Clause 5(a), the Buyers shall be obliged to take
                          delivery in accordance with Clause 3 (Payment), whether the Vessel is in drydock or not.

                

        

      

      *
              6 (a) and 6 (b) are alternatives; delete whichever is not applicable. In the
              absence of deletions, alternative 6 (a)
              shall apply.

      **Notes

              or memoranda, if any, in the surveyor’s report which are accepted by the Classification Society without condition/recommendation are not to be taken into account.

      
        
          	7.	
                  Spares, bunkers and other items

                

        

      

      The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on
          shore. All spare parts and spare equipment including spare tail-end shaft(s) and/or spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of delivery inspection used or unused, whether on board or not shall become the Buyers’ property, but spares on order are excluded. Forwarding charges, if any, shall be for the Buyers’ account.  The Sellers are not required to replace spare parts including spare
          tail-end shaft(s) and spare propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the property of the Buyers. Unused stores and provisions shall be included in the
          sale and be taken over by the Buyers without extra payment.

      Library and forms
              exclusively for use in the Sellers’ vessel(s) and captain’s, officers’ and crew’s personal belongings including the slop chest are excluded from the sale without compensation, as well as the following additional items: _______ (include list)

      Items

              on board which are on hire or owned by third parties, listed as follows, are excluded from

      

      

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        4

        
          

      

      

      

      the sale without
              compensation: _______ (include

              list)

      Items on board at the time of delivery inspection which are on hire or owned by third parties, not listed above, shall be replaced or procured by the
          Sellers prior to delivery at their cost and expense.

      The Buyers shall take over remaining bunkers and unused lubricating and hydraulic oils and greases in storage tanks and unopened drums without extra payment and pay either:

      (a)  *the actual net price (excluding barging expenses) as evidenced by invoices or vouchers; or

      (b)  *the current net market price (excluding barging expenses) at the port and date of delivery of the Vessel or, if unavailable, at the nearest bunkering port.

      for the
              quantities taken over.

      Payment under
              this Clause shall be made at the same time and place and in the same currency as the Purchase Price.

      “inspection” in
              this Clause 7, shall mean the Buyers’ inspection
              according to Clause 4(a) or 4(b) (Inspection), if applicable. If the Vessel is taken over without inspection, the
              date of this Agreement shall be the relevant date.

      *(a) and (b) are alternatives, delete whichever is not applicable. In the absence of deletions
              alternative (a) shall apply.

      
        
          	8.	
                  Documentation

                

        

      

      The place of closing:  [**]

      (a)  Without prejudice and in addition to Additional Clause 21 (Payment of the Purchase Price).  In exchange for
            payment of the Purchase Price is conditional upon the Sellers shall providinge the Buyers with the following delivery documents (on or before the Delivery Date):

      
        
          	

                	(i)	
                  Legal Bill(s) of Sale in a form recordable in the Buyers’ Nominated Flag State, transferring title of the Vessel and stating that the Vessel is free from
                      all mortgages, encumbrances and maritime liens or any other debts whatsoever, duly notarially attested and legalised or apostilled acknowledged by a special agent of the registry of, as
                          required by the Buyers’ Nominated Flag State;

                

        

      

      
        
          	

                	(ii)	
                  Evidence that all necessary corporate, shareholder and other action has been taken by the Sellers to authorise the execution, delivery and performance of
                      this Agreement;

                

        

      

      
        
          	

                	(iii)	
                  Power of Attorney of the Sellers appointing one or more representatives to act on behalf of the Sellers in the performance of this Agreement, duly notarially attested and legalised or apostilled (as appropriate);

                

        

      

      
        
          	

                	(iv)	
                  Certificate of Ownership and Encumbrance or Transcript of Registry issued by the competent authorities of the flag state on the date of delivery 9 July 2018 evidencing the Sellers’ ownership of the Vessel and that the Vessel is free
                      from registered encumbrances and mortgages, to be faxed or e-mailed by such authority to the closing meeting with the original to be sent to the Buyers as soon as possible after delivery of the Vessel;

                

        

      

      
        
          	

                	(v)	
                  A copy of the Interim Class Certificate dated 9 July 2018 and a copy of the
                      Declaration of Class or (depending on the Classification Society) a Class Maintenance Certificate issued on or about 9 July 2018 issued within three (3) Banking Days prior to delivery confirming that the Vessel is in Class free of condition/recommendation (originals of which to be delivered to the Buyers within 7 Banking Days of the Delivery Date);

                

        

      

      
        
          	

                	(vi)	
                  Certificate of Deletion of the Vessel from the Vessel’s registry or
                          other official evidence of deletion appropriate to the Vessel’s registry at the time of delivery, or, in the event that the registry does not as a matter of practice issue such documentation immediately a written undertaking by
                          the Sellers to effect deletion from the Vessel’s registry forthwith and provide a certificate or other official evidence of deletion to the Buyers promptly and latest within four (4) weeks after the Purchase Price has been paid
                          and the Vessel has been delivered;

                

        

      

      
        
          	

                	(vii)	
                  A copy of the Vessel’s Continuous Synopsis Record certifying the date
                          on which the Vessel ceased to be registered with the Vessel’s registry, or, in the event that the registry does not as a matter of practice issue such certificate immediately, a written undertaking from the Sellers to provide the
                          copy of this certificate promptly upon it being issued together with evidence of submission by the Sellers of a duly executed Form 2 stating

                

        

      

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        5

        
          

      

      

      

      the

              date on which the Vessel shall cease to be registered with the Vessel’s registry;

      
        
          	

                	(viii)	
                  Commercial Invoice for the Vessel;

                

        

      

      
        
          	

                	(ix)	
                  Commercial Invoice(s) for bunkers, lubricating and hydraulic oils and
                          greases;

                

        

      

      
        
          	

                	(x)	
                  A copy of the Sellers’ letter to their satellite communication provider
                          cancelling the Vessel’s communication contract which is to be sent immediately after delivery of the Vessel;

                

        

      

      
        
          	

                	(xi)	
                  Any additional documents as may reasonably be required by the competent authorities of the Buyers’ Nominated Flag State for the purpose of registering the
                      Vessel, provided the Buyers notify the Sellers of any such documents as soon as possible after the date of this Agreement; and

                

        

      

      
        
          	

                	(xii)	
                  The Sellers’ letter of confirmation that to the best of their knowledge, the Vessel is not black listed by any nation or international organisation.

                

        

      

      A certificate from a
              director/officer of the Sellers confirming that all copies of documents provided under this Agreement are true copies of such documents;

      A Protocol of Delivery
              and Acceptance signed by the Parties confirming the date and time of delivery of the Vessel from the Sellers to the Buyers; and

      A Certificate of
              Ownership and Encumbrance issued on the Delivery Date by the Marshall Islands Ship Registry (evidencing that the Buyers are the owners of the Vessel and that the Vessel is free from registered encumbrances and mortgages other than any
              Security Interest in favour of the Finance Parties (as defined in the Bareboat Charter)).

      (b) At

          the time of delivery the Buyers shall provide the Sellers with:

      
        
          	

                	(i)	
                  Evidence that all necessary corporate, shareholder and other action has been taken by the Buyers to authorise the execution, delivery and performance of
                      this Agreement; and

                

        

      

      
        
          	

                	(ii)	
                  (if applicable) Power of Attorney of the Buyers appointing one or
                      more representatives to act on behalf of the Buyers in the performance of this Agreement, duly notarially attested and legalised or apostilled (as
                          appropriate) acknowledged by Marshall Islands ship registry authorities.

                

        

      

      (c) If

          any of the documents listed in Sub clauses (a) and (b) above the documentary addendum are not in the English language they shall be accompanied by an English translation by an authorised translator or certified by a lawyer qualified to practice
          in the country of the translated language.

      (d) The

          Parties shall to the extent possible exchange copies, drafts or samples of the documents listed in Sub-clause (a) and Sub-clause (b) above for review and comment by the other party. not later than _________ (state number of days), or if left blank, nine (9) days prior to the Vessel’s intended date of readiness for
              delivery as notified by the Sellers pursuant to Clause 5(b) of this Agreement.

      (e) Concurrent

          with the exchange of documents in Sub-clause (a) and Sub-clause (b) above, the the Sellers shall also hand to the Buyers shall gain title and ownership to the classification certificate(s) as well as all plans, drawings and manuals, (excluding ISM/ISPS manuals), which are on board the Vessel and on the Delivery Date shall remain
              on-board the Vessel.  Other certificates which are on board the Vessel shall also be handed over to the Buyers unless the Sellers are required to retain same, in which case the Buyers have the right to take copies.

      (f) Other

          technical documentation which may be in the Sellers’ possession shall promptly after delivery be forwarded to the Buyers at their expense, if they so request. The Sellers may keep the Vessel’s log books but the Buyers have the right to take
          copies of same.

      (g)

            The Parties shall sign and deliver to each other a Protocol of Delivery and Acceptance confirming the date and time of delivery of the Vessel
              from the Sellers to the Buyers.

      
        
          	9.	
                  Encumbrances

                

        

      

      The Sellers warrant that the Vessel, at the time of delivery, is free from all charters, encumbrances,
          mortgages and maritime liens or any other claims or debts whatsoever, and is not subject to Port State or other administrative detentions. The Sellers hereby
          undertake to indemnify the Buyers against all consequences of claims made against the Vessel which have been incurred

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        6

        
          

      

      

      

      prior to the time of delivery.

      
        
          	10.	
                  Taxes, fees and expenses

                

        

      

      Any taxes, fees and expenses in connection with the purchase and registration in the Buyers’ Nominated
          Flag State shall be for the Sellers Buyers’ account,
          whereas similar charges in connection with the closing of the Sellers’ register shall be for the Sellers’ account.

      
        
          	11.	
                  Condition on delivery

                

        

      

      The Vessel with everything belonging to her shall be at the Sellers’ risk and expense until she is
          delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be delivered and taken over “as is where is’” she was at the time of delivery inspection, fair wear and tear excepted.

      However, the Vessel shall be delivered free of cargo and free of stowaways with her Class maintained without condition/recommendation*, free of average damage affecting the Vessel’s class, and with her classification certificates and national
          certificates, as well as all other certificates the Vessel had at the time of delivery inspection, clean, valid and unextended without condition/ recommendation* by the Classification Society or the relevant authorities at the time of delivery.

      “inspection” in
              this Clause 11, shall mean the Buyers’ inspection
              according to Clause 4(a) or 4(b) (Inspections), if applicable. If the Vessel is taken over without inspection, the
              date of this Agreement shall be the relevant date.

      *Notes and memoranda, if any, in the surveyor’s report which are accepted by the
          Classification Society without condition/recommendation are not to be taken into account.

      
        
          	12.	
                  Name/markings

                

        

      

      Upon delivery the
              Buyers undertake to change the name of the Vessel and alter funnel markings.

      
        
          	13.	
                  Buyers’ default

                

        

      

      Should the
              Deposit not be lodged in accordance with Clause 2 (Deposit), the Sellers have the right to cancel this Agreement, and they shall be entitled to claim compensation for their losses and for all expenses incurred together with interest.

      Should the
              Purchase Price not be paid in accordance with Clause 3 (Payment), the Sellers have the right to cancel this Agreement, in which case the Deposit together with interest earned, if any, shall be released to the Sellers. If the Deposit does not cover their loss, the Sellers
              shall be entitled to claim further compensation for their losses and for all expenses incurred together with interest.

      
        
          	14.	
                  Sellers’ default

                

        

      

      Should the
              Sellers fail to give Notice of Readiness in accordance with Clause 5(b) or fail to be ready to validly complete a legal transfer by the Cancelling Date the Buyers shall have the option of cancelling this Agreement. If after Notice of Readiness has been given but before the
              Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not made physically ready again by the Cancelling Date and new Notice of Readiness given, the Buyers shall retain their option to cancel. In the event
              that the Buyers elect to cancel this Agreement, the Deposit together with interest earned, if any, shall be released to them immediately.

      Should the
              Sellers fail to give Notice of Readiness by the Cancelling Date or fail to be ready to validly complete a legal transfer as aforesaid they shall make due compensation to the Buyers for their loss and for all expenses together with interest if
              their failure is due to proven negligence and whether or not the Buyers cancel this Agreement.

      
        
          	15.	
                  Buyers’ representatives

                

        

      

      After this
              Agreement has been signed by the Parties and the Deposit has been lodged, the Buyers have the right to place two (2) representatives on board the Vessel at their sole risk and expense.

      These
              representatives are on board for the purpose of familiarisation and in the capacity of observers only, and they shall not interfere in any respect with the operation of the Vessel. The Buyers and the Buyers’ representatives shall sign the
              Sellers’ P&I Club’s standard letter of indemnity prior to their embarkation.

      
        
          	16.	
                  Law and Arbitration See Additional Clause 24 (Governing
                          Law) and 25 (Arbitration)

                

        

      

      (a) *This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Agreement shall be
              referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        7

        
          

      

      

      

      enactment thereof
              save to the extent necessary to give effect to the provisions of this Clause.

      The arbitration
              shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced.

      The reference
              shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within
              fourteen (14) calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the fourteen (14) days specified. If
              the other party does not appoint its own arbitrator and give notice that it has done so within the fourteen (14) days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the
              other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both Parties as if the sole arbitrator had been appointed by agreement.

      In cases where
              neither the claim nor any counterclaim exceeds the sum of US$100,000 the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.

      (b) *This Agreement shall be governed by and construed in accordance with Title 9 of the United States Code and the substantive law (not including the choice of law
              rules) of the State of New York and any dispute arising out of or in connection with this Agreement shall be referred to three (3) persons at New York, one to be appointed by each of the parties hereto, and the third by the two so chosen;
              their decision or that of any two of them shall be final, and for the purposes of enforcing any award, judgement may be entered on an award by any court of competent jurisdiction. The proceedings shall be conducted in accordance with the
              rules of the Society of Maritime Arbitrators, Inc.

      In cases where
              neither the claim nor any counterclaim exceeds the sum of US$100,000 the arbitration shall be conducted in accordance with the Shortened Arbitration Procedure of the Society of Maritime Arbitrators, Inc.

      (c) This Agreement shall be governed by and construed in accordance with the laws of _______ (state place) and any dispute arising out of or in connection with this Agreement shall be referred to arbitration at ______ (state place), subject to the procedures
              applicable there.

      *16(a), 16(b) and 16(c) are alternatives; delete whichever is not applicable, In the absence of deletions, alternative 16(a) shall apply.

      
        
          	17.	
                  Notices See Additional Clause 26 (Notices)

                

        

      

      All notices to be
              provided under this Agreement shall be in writing.

      Contact details
              for recipients of notices are as follows:

      For the Buyers:  __________

      

      

      For the Sellers: 
              __________

      
        
          	18.	
                  Entire Agreement

                

        

      

      The written terms
              of this Agreement comprise the entire agreement between the Buyers and the Sellers in relation to the sale and purchase of the Vessel and supersede all previous agreements whether oral or written between the Parties in relation thereto.

      Each of the
              Parties acknowledges that in entering into this Agreement it has not relied on and shall have no right or remedy in respect of any statement, representation, assurance or warranty (whether or not made negligently) other than as is expressly
              set out in this Agreement.

      Any terms implied
              into this Agreement by any applicable statute or law are hereby excluded to the extent that such exclusion can legally be made. Nothing in this Clause shall limit or exclude any liability for fraud.

      

      

      	
              For and on behalf of the Sellers

            	
              For and on behalf of the Buyers

            
	
               

            	
               

            
	 	 [                                                  ]
            
	
              Name:  ___________

            	
              Name:  [                                                 
                  ]

            

      

      

      

      

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      
        8

        
          

      

      

      

      	
              Title:  ___________

            	
              Title:  [                                                 
                  ]

            

      

      

      

      

      

      

      

      

      This document is a computer generated SALEFORM 2012 form printed by authority of the Norwegian Shipbrokers’ Association. Any insertion or
          deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original approved document shall apply. BIMCO and the Norwegian
          Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of discrepancies between the original approved document and this computer generated document.

      

      

    

    

    

    

    

    
      9

      
        

    

    

    

    

    

    
      ADDITIONAL CLAUSES

      TO MEMORANDUM OF AGREEMENT DATED
                           July 2018

      

      

      FOR THE LNG CARRIER “FLEX RAINBOW” (IMO
              NUMBER 9709037)

      

      

      
        
          	19.	
                  Sellers’ representation

                

        

      

      The Sellers represent and warrant as at the date hereof and on the Delivery Date
          that:

      
        
          	

                	(a)	
                  they are the sole registered legal and beneficial owner of the Vessel;

                

        

      

      
        
          	

                	(b)	
                  they are not a Restricted Party; and

                

        

      

      
        
          	

                	(c)	
                  neither themselves nor any of their directors, officers or employees or any person acting on their behalf has received notice or are aware of any claim,
                      action, suit, proceeding or investigation against any of them or the Vessel with respect to Sanctions by a Sanctions Authority.

                

        

      

      
        
          	20.	
                  Adjustment of the Purchase Price

                

        

      

      The Purchase Price shall be adjusted if the Contract Price of the Vessel under the Building
          Contract is reduced below United States Dollars Two Hundred and Eleven Million Nine Hundred and Twenty Thousand (US$211,920,000), in which case the Purchase Price shall be reduced by such reduction amount.

      
        
          	21.	
                  Payment of the Purchase Price

                

        

      

      
        
          	

                	(a)	
                  The Buyers shall pay the Purchase Price in the following manner:

                

        

      

      
        
          	

                	(i)	
                  for an amount equivalent to the Advance Hire
                        (US$52,500,000): by netting on the Delivery Date against the Advance Hire payable by the Sellers to the Buyers under the Bareboat Charter (so that, after netting, the Buyers shall be considered to have paid the Sellers part
                      of the Purchase Price equivalent to the amount of the Advance Hire and the Sellers shall be considered to have paid the Buyers the Advance Hire); and

                

        

      

      
        
          	

                	(ii)	
                  for the remainder (an amount up to US$157,500,000 subject
                        to any adjustment under Clause 20): by remittance to the Sellers’s designated bank account.

                

        

      

      
        
          	

                	(b)	
                  The obligation of the Buyers to pay all or any part of the Purchase Price is subject to and conditional upon the conditions precedent set out in clause 37
                      of the Bareboat Charter having been satisfied (upon which the Buyers shall notify the Sellers in writing).

                

        

      

      
        
          	

                	(c)	
                  In cases where the Buyer’s remittance of any part of the Purchase Price is effected through a MT199 swift message (the “MT199 Swift”):

                

        

      

      
        
          	

                	(i)	
                  the Sellers agree to release, discharge, defend, indemnify, waive and hold harmless the Buyers from and against any liability, obligation or claim which may
                      be asserted, claimed or recovered against the Buyers for any reason directly arising out of or in any manner connected with the release or the failure to release (as the case may be) of the Purchase Price by the Sellers’ bank except
                      if the same solely results from or is a direct consequence of the

                

        

      

      
        
          

      

      

      

      Buyers’ failure to perform their obligations under or in breach of any provisions under this
          Agreement or the Bareboat Charter; and

      
        
          	

                	(ii)	
                  if for any reason any part of the Purchase Price paid to the Sellers’ bank by the Buyers is neither released in accordance with the instructions set out in
                      the MT199 Swift nor returned to the Buyers within the period set out in the MT199 Swift, the Sellers shall promptly refund to the Buyers that part of the Purchase Price.

                

        

      

      
        
          	22.	
                  Delivery under Bareboat Charter

                

        

      

      
        
          	

                	(a)	
                  Upon the delivery of the Vessel under this Agreement, the Vessel shall simultaneously be delivered to the Sellers (as charterers) pursuant to the Bareboat
                      Charter.

                

        

      

      
        
          	

                	(b)	
                  The Sellers shall be fully responsible for the Buyers’ fulfilment of physical delivery as new owner of the Vessel to the Sellers (as charterers) under the
                      Bareboat Charter. The Buyers’ obligation to take delivery of the Vessel under this Agreement is subject to the Sellers (as charterers) taking delivery of the Vessel simultaneously under the Bareboat Charter.

                

        

      

      
        
          	

                	(c)	
                  If the Bareboat Charter is cancelled or the delivery of the Vessel does not take place under the Bareboat Charter due to the Sellers’ default, and without
                      prejudice to any rights that the Buyers may have (including under the Bareboat Charter), this Agreement shall be null and void, provided however that Clauses 21(c), 23 to 27 shall survive and the Buyers shall be entitled to claim,
                      without limitation, compensation for their losses and expenses due to the default of the Sellers.

                

        

      

      
        
          	23.	
                  Indemnities

                

        

      

      
        
          	

                	(a)	
                  The Sellers shall pay such amounts to the Buyers in respect of all claims, expenses, liabilities, losses, fees (including but not limited to any vessel
                      registration and tonnage fees) suffered or incurred by or imposed on the Buyers arising from this Agreement or in connection with the delivery, registration and purchase of the Vessel by the Buyers whether prior to, during or after
                      termination of this Agreement and whether or not the Vessel is in the possession or the control of the Sellers or otherwise in relation to any non-delivery to or acceptance by the Sellers of the Vessel under the Bareboat Charter.

                

        

      

      
        
          	

                	(b)	
                  Notwithstanding anything to the contrary herein, the indemnities provided by the Sellers in favour of the Buyers shall continue in full force and effect
                      notwithstanding any breach of the terms of this Agreement or termination of this Agreement pursuant to the terms hereof.

                

        

      

      
        
          	24.	
                  Governing Law

                

        

      

      This Agreement and any non-contractual obligations arising from or in
          connection with it shall be governed by and construed in accordance with English law.

      
        
          	25.	
                  Arbitration

                

        

      

      
        
          	

                	(a)	
                  Any dispute, controversy or claim arising out of or relating to this Agreement, including the existence, validity, interpretation, performance, breach or
                      termination

                

        

      

      
        
          

      

      

      

      thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall
          be referred to and finally resolved by arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause 25.

      
        
          	

                	(b)	
                  The arbitration shall be conducted in accordance with the London Maritime Arbitration Association (LMAA) terms current at the time when arbitration
                      proceedings are commenced.

                

        

      

      
        
          	

                	(c)	
                  The reference shall be to three (3) arbitrators. A Party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such
                      appointment in writing to the other Party requiring the other Party to appoint its own arbitrator within fourteen (14) calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other
                      Party appoints its own arbitrator and gives notice that it has done so within the fourteen (14) days specified. If the other Party does not appoint its own arbitrator and give notice that it has done so within the fourteen (14) days
                      specified, the Party referring a dispute to arbitration may, without the requirement of any further prior notice to the other Party, appoint its own arbitrator as sole arbitrator and shall advise the other Party accordingly. The award
                      of a sole arbitrator shall be binding on both Parties as if he had been appointed by agreement.

                

        

      

      
        
          	

                	(d)	
                  Nothing herein shall prevent the Parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator.

                

        

      

      
        
          	

                	(e)	
                  In cases where neither the claim nor any counterclaim exceeds the sum of US Dollars Fifty Thousand (US$50,000) (or such other sum as the Parties may agree)
                      the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.

                

        

      

      
        
          	26.	
                  Notices

                

        

      

      The provisions in clause 71 (Notices) of the Bareboat Charter apply to this Agreement as if they were expressly incorporated and set out in this Agreement with appropriate and necessary modifications.

      
        
          	27.	
                  Further definitions

                

        

      

      In this Agreement, unless otherwise defined or the context requires otherwise, terms defined in the
          Bareboat Charter have the same meaning and construction when used in this Agreement. In addition:

      “Bareboat

            Charter” means a bareboat charterparty dated on or about the date of this Agreement in respect of the Vessel made or to be made (as the case may be) between the Buyers (as owners) and the Sellers (as charterers).

      “Contract

            Price” means the contract price of the Vessel under the Building Contract, being United States Dollars Two Hundred and Eleven Million Nine Hundred and Twenty Thousand (US$211,920,000) (subject to adjustment under the Building Contract).

      “Delivery

            Date” means the date of delivery of the Vessel by the Sellers to the Buyers pursuant to this Agreement.

      
        
          

      

      

      

      “Restricted

            Party” means a person or entity that is (i) listed on, or owned or controlled by a person listed on, or acting on behalf of a person listed on, any Sanctions List; (ii) a national of, located in, incorporated under the laws of, or owned
          or (directly or indirectly) controlled by, or acting on behalf of, a person located in or organised under (A) Iraq, Iran or Venezuela or (B) the laws of a country or territory that is the target of country-wide or territory-wide Sanctions; or
          (iii) otherwise a target of Sanctions (“target of Sanctions” signifying a person with whom a US person or other national of Sanctions Authority would be prohibited or restricted by law from engaging in trade, business or other activities).

      “Sanctions”
          means the economic sanction laws, regulations, embargoes or restrictive measures administered, enacted or enforced by: (i) the United States government; (ii) the United Nations; (iii) the European Union; (iv) the United Kingdom; (v) the People’s
          Republic of China or (vi) the respective governmental institutions and agencies of any of the foregoing, including, without limitation, the Office of Foreign Assets Control of the US Department of Treasury (“OFAC”), the United States Department of State and Her Majesty’s Treasury (“HMT”);

          (together, the “Sanctions Authorities”).

      “Sanctions

            List” means the “Specially Designated Nationals and Blocked Persons” list maintained by the OFAC, the Consolidated List of Financial Sanctions Targets and the Investment Ban List maintained by HMT, or any similar list maintained by, or
          public announcement of Sanctions designation made by, any of the Sanctions Authorities.

      
        
          

      

      

      

      In witness of which the Parties have executed this Agreement on the _____ day of July 2018.

      

      

      SELLERS

      

      

      	
              Signed by

            	
              )

            	 	 
	
              as

            	
              )

            	 	 
	
              for and on behalf of

            	
              )

            	 	 
	
              FLEX LNG RAINBOW LIMITED

            	
              )

            	 	 
	
              in the presence of:

            	
              )

            	 	 

      

      

      

      

      Witness signature ................................

      Name:

      Address:

      

      

      

      

      BUYERS

      

      

      	
              Signed by

            	
              )

            	 	 
	
              as duly authorised signatory

            	
              )

            	 	 
	
              for and on behalf

            	
              )

            	
              /s/

            	 
	  [                                                

                ] 	
              )

            	 	 
	  [                                                

                ] 	
              )

            	 	 
	
              in the presence of:

            	
              )

            	 	 
	 	 	 	 

      

      

      

      

      Witness signature ................................

      Name:

      Address:   [                                                  ]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}]]