Document:

Exhibit 10.69

 

	

    	
www.koreaexim.go.kr

 
    
	
38, Eunhaeng-Ro(16-1, Yeouido-Dong),   Yeongdeungpo-Gu, Seoul 150-996, Korea

Tel. 822-3779-6318   Fax.822-3779-6745

 
    	
 
    
	
To: STI Edinburg Shipping Company Limited

Trust Company Complex, Ajeltake Road, Ajeltake Island
   Majuro, Marshall Islands 96960, Marshall Islands
    	
Date: 17th December, 2013
    

 

IRREVOCABLE STAND BY LETTER OF CREDIT

 

Gentlemen:

 

We hereby open our irrevocable Letter of Credit No.M0902-312-LG-00071 in favour of STI Edinburg Shipping Company Limited (herein called “Buyer”) for account of Daewoo Shipbuilding & Marine Engineering Co., Ltd., 85, Da-dong, Jung-gu, 100-180, Seoul, Korea (herein called “Builder”) as follows in connection with the Shipbuilding Contract dated 13th of December, 2013 (hereinafter called the “Contract”) made by and between Buyer and the Builder for the construction and sale of one (1) 300,000 TDW Crude Oil Tanker having Builder’s Hull No. 5405(hereinafter called the “Vessel”).

 

If in connection with the terms and conditions of the Contract, whether so supplemented, amended, changed or modified, the Buyer shall become entitled to a refund of the advance payments made to Builder prior to the delivery of the Vessel, we hereby irrevocably guarantee to make the repayment of the same to Buyer within ten (10) working days after demand by the Buyer together with interest thereon at the rate of six percent (6%) per annum from the date following the date of receipt by Builder of each advance payment to the date of remittance by telegraphic transfer of such refund.

 

This Letter of Credit shall be in force and effect from the date of Builder’s actual receipt of the first instalment or advance payment in the amount of United States Dollars Fourteen Million One Hundred Seven Thousand Five Hundred only (USD14,107,500.-).

 

The amount of this Credit will be automatically increased upon Builder’s receipt of each successive advance payment, not more than three (3) times, each time by the amount of the advance payment plus interest thereon as provided in the Contract, but in any eventuality the amount of this Credit shall not exceed the total sum of United States Dollars Forty Two Million Three Hundred Twenty Two Thousand Five Hundred only (USD42,322,500.-) plus interest thereon at the rate of six percent (6%) per annum from the date following the date of Builder’s receipt of each advance payment to the date of remittance by telegraphic transfer of the refund. If any termination of the Contract is based on delays due to Force Majeure or other causes beyond the control of Builder as specified in Article VIII of the Contract, no interest shall be payable.

 

This Letter of Credit is available against Buyer’s written statement stating that Buyer’s demand for refund has been made in conformity with the Contract and Builder has failed to make the refund within twenty (20) days after the Buyer’s demand. Refund shall be made to the Buyer by telegraphic transfer in United States Dollars.

 

This Letter of Credit shall expire and become null and void upon receipt by Buyer of the sum guaranteed hereby together with interest thereon as aforesaid or upon the execution by Buyer and Builder of the Protocol of Delivery and Acceptance of the Vessel or if the Contract is terminated due to Buyer’s default in accordance with the provisions of Article XI of the Contract, unless such default has been disputed with notice to us by Buyer within ten (10) working days of Buyer’s receipt of Builder’s written notice of termination. In any such case, this Letter of Credit shall be returned to us.

 

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This Letter of Credit is transferable and valid until October 10, 2015, which date shall be adjusted and fixed in accordance with Article VII.1(a) of the Contract, or, in the event of delayed delivery, the expiration date of this Letter of Credit shall be extended to such time as the Vessel is delivered by Builder to Buyer in accordance with the provisions of the Contract.

 

Notwithstanding the provisions hereinabove, in case we receive notification from you or Builder confirmed by an arbitrator stating that your claim to cancel or terminate the Contract or your claim for refundment thereunder has been disputed and referred to Arbitration in accordance with the provisions of the Contract, this Letter of Credit shall be valid, until thirty (30) days after the final award shall be rendered in the Arbitration and a copy thereof acknowledged by the Arbitrators. In such case, this Letter of Credit shall not be available unless and until such acknowledged copy of the final award in the Arbitration justifying your claim is presented to us.

 

Except as otherwise expressly stated herein, this Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 ( hereinafter called the “UCPDC”) and to the extent not contrary to the UCPDC this Letter of Credit shall be governed by the laws of England. And any dispute arising out of or in relation to this Letter of Credit shall be determined by the High Court of England to whose non-exclusive jurisdiction we hereby agree to submit. For the purposes of any legal proceedings hereunder we hereby irrevocably appoint KEXIM BANK (UK) LTD. at present of 3rd Floor Moorgate Hall 155 Moorgate EC2M 6XB London as our agents for the service of process.

 

Yours very truly,

 

 

The Export-Import Bank of Korea

 

	
/s/ Seung-Won Cha
    	
 
    	
/s/ Yun-Hee Kim
    
	
Name : Seung-Won Cha
   Title : Director
    	
 
    	
Name : Yun-Hee Kim
   Title : Senior Loan Officer
    

 

2Exhibit 10.70

 

	

    	
S.W.I.F.T. 

ABNANL2R
    	
head office 

Coolsingel 93 

3012 AE ROTTERDAM
    	
mail address 

P.O. Box 749   

3000 AS ROTTERDAM   
    	
phone/fax 

+31-10-4016141

+31-10-4025413
    

 

STI ESLES SHIPPING COMPANY LTD

Le Millenium 9

Boulevard Charles III

MC98000 MONACO 

MONACO

 

	
Your   Reference 
    	
Your Date
    	
Our Reference
    	
Our Date
    	
Contact person
    
	
S778
    	
 
    	
NLAA0100238E001
    	
2014.01.09
    	
Anna vd Linden-Rozanska
    

 

Advice of Guarantee

 

SHINHAN BANK

CO LTD

120 Taepyeongno 2-ga, Jung-Gu 

SEOUL 100-865

KOREA, REPUBLIC OF

 

with guarantee number:           M16FB1312XD00235

 

This message is passed on to yourselves without any responsibility from our side to you.

 

We have debited your USD account number 618576134 for the sum of our commissions/charges.

 

Commissions/Charges:

 

	
Telecomm. charges:
    	
 
    	
USD
    	
9.61
    	
 
    
	
All in fee:
    	
 
    	
USD
    	
96.09
    	
 
    
	
Total
    	
 
    	
USD
    	
105.70
    	
 
    

 

quote

 

LETTER OF GUARANTEE

 

LETTER OF GUARANTEE NO.:M16FB1312XD00235 

 

DATE : DECEMBER 23, 2013

 

GENTLEMEN:

 

WE HEREBY OPEN OUR IRREVOCABLE LETTER OF GUARANTEE NUMBER M16FB1312XD00235 IN FAVOUR OF STI ESLES SHIPPING COMPANY LIMITED, A CORPORATION INCORPORATED AND EXISTING UNDER THE LAWS OF THE REPUBLIC OF THE MARSHALL ISLANDS, HAVING ITS REGISTERED OFFICE AT TRUST COMPANY COMPLEX, AJELTAKE ROAD, AJELTAKE ISLAND, MAJURO, MARSHALL ISLANDS 96960 (HEREINAFTER CALLED THE “BUYER”) FOR ACCOUNT OF HYUNDAI SAMHO HEAVY INDUSTRIES CO., LTD., SAMHO, KOREA (HEREINAFTER CALLED THE “BUILDER”) AS FOLLOWS IN CONNECTION WITH THE SHIPBUILDING CONTRACT DATED DECEMBER 20, 2013 (HEREINAFTER CALLED “CONTRACT”) MADE BY AND BETWEEN THE BUYER AND THE BUILDER FOR THE CONSTRUCTION OF 300,000 DWT CLASS

 

	
 
    	
NLAA0100238
    	
ABN AMRO Bank N.V.,  gevestigd to Amsterdam
    
	
 
    	
 
    	
Handelsregister K.v.K. Amsterdam, nr 34334259
    
	
 
    	
 
    	
BTW nr NL820646660B01
    

 

 

 

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CRUDE OIL CARRIER HAVING THE BUILDER’S HULL NO. S778 (HEREINAFTER CALLED THE “VESSEL”).

 

IF, IN CONNECTION WITH THE TERMS OF THE CONTRACT, WHETHER SO SUPPLEMENTED, AMENDED, CHANGED OR MODIFIED, THE BUYER SHALL BECOME ENTITLED TO A REFUND OF THE ADVANCE PAYMENT MADE TO THE BUILDER PRIOR TO THE DELIVERY OF THE VESSEL, WE HEREBY IRREVOCABLY GUARANTEE THE REPAYMENT OF THE SAME TO THE BUYER WITHIN TWENTY (20) DAYS AFTER DEMAND NOT EXCEEDING USD 9,447,500 (SAY U.S. DOLLARS NINE MILLION FOUR HUNDRED FORTY SEVEN THOUSAND FIVE HUNDRED ONLY) TOGETHER WITH INTEREST THEREON AT THE RATE OF SIX PER CENT (6PCT) PER ANNUM FROM THE DATE FOLLOWING THE DATE OF RECEIPT BY THE BUILDER TO THE DATE OF REMITTANCE BY TELEGRAPHIC TRANSFER OF SUCH REFUND.

 

THE AMOUNT OF THIS GUARANTEE WILL BE AUTOMATICALLY INCREASED UPON THE BUILDER’S RECEIPT OF THE RESPECTIVE INSTALMENT, NOT MORE THAN TWO (2) TIMES, EACH TIME BY THE AMOUNT OF INSTALMENT PLUS INTEREST THEREON AS PROVIDED IN THE CONTRACT, BUT IN ANY EVENTUALITY THE AMOUNT OF THIS GUARANTEE SHALL NOT EXCEED THE TOTAL SUM OF USD 37,790,000 (SAY U.S. DOLLARS THIRTY SEVEN MILLION SEVEN HUNDRED NINETY THOUSAND ONLY) PLUS INTEREST THEREON AT THE RATE OF SIX PER CENT (6PCT) PER ANNUM FROM THE DATE FOLLOWING THE DATE OF THE BUILDER’S RECEIPT OF EACH INSTALMENT TO THE DATE OF REMITTANCE BY TELEGRAPHIC TRANSFER OF THE REFUND. HOWEVER, IN THE EVENT OF CANCELLATION OF THE CONTRACT BEING BASED ON DELAYS DUE TO FORCE MAJEURE OR OTHER CAUSES BEYOND THE CONTROL OF THE BUILDER, THE INTEREST RATE OF REFUND SHALL BE REDUCED TO FOUR PER CENT (4PCT) PER ANNUM AS PROVIDED IN ARTICLE X OF THE CONTRACT.

 

THIS LETTER OF GUARANTEE IS AVAILABLE (SUBJECT TO THE THIRD PARAGRAPH HEREOF) AGAINST THE BUYER’S FIRST WRITTEN DEMAND AND SIGNED STATEMENT CERTIFYING THAT THE BUYER’S DEMAND FOR REFUND HAS BEEN MADE IN CONFORMITY WITH ARTICLE X OF THE CONTRACT AND THE BUILDER HAS FAILED TO MAKE THE REFUND WITHIN TWENTY (20) DAYS AFTER THE BUYER’S DEMAND. REFUND SHALL BE MADE TO THE BUYER BY TELEGRAPHIC TRANSFER IN UNITED STATES DOLLARS.

 

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

 

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

 

NOTWITHSTANDING THE PROVISIONS HEREINABOVE, IN THE EVENT THAT WITHIN TWENTY (20) DAYS FROM THE DATE OF YOUR CLAIM TO THE BUILDER REFERRED TO ABOVE, WE RECEIVE NOTIFICATION FROM YOU OR THE BUILDER ACCOMPANIED BY WRITTEN CONFIRMATION TO THE EFFECT THAT YOUR CLAIM TO CANCEL THE CONTRACT OR YOUR CLAIM FOR REFUNDMENT THEREUNDER HAS BEEN DISPUTED AND REFERRED TO ARBITRATION IN ACCORDANCE WITH THE PROVISIONS OF THE CONTRACT, WE SHALL UNDER THIS GUARANTEE, REFUND TO YOU THE SUM ADJUDGED TO BE DUE TO YOU BY THE BUILDER PURSUANT TO THE AWARD MADE UNDER SUCH ARBITRATION IMMEDIATELY UPON RECEIPT FROM YOU OF A

 

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DEMAND FOR THE SUMS SO ADJUDGED AND A COPY OF THE AWARD.

 

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

 

THIS LETTER OF GUARANTEE IS ASSIGNABLE AND VALID FROM THE DATE OF THIS LETTER OF GUARANTEE UNTIL SUCH TIME AS THE VESSEL IS DELIVERED BY THE BUILDER TO THE BUYER IN ACCORDANCE WITH THE PROVISIONS OF THE CONTRACT.

 

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

 

	
VERY TRULY YOURS, 

BY:                                                         BY:   

BY:                                                         BY:   

NAME: KIM JUNG-KAE 

TITLE: GENERAL MANAGER
    	
 

 

 

NAME: SONG YOUNG-MAN 

TITLE: RELATIONSHIP MANAGER 

unquote
    

 

 

Yours faithfully,

 

	
ABN AMRO Bank N.V.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ A. Vander Linder-Rozanska
    	
 
    	
/s/ [Illegible]
    
	
A. Vander Linder-Rozanska
    	
 
    	
 
    

 

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