Document:

Exhibit 10.1

Date 14 March 2008

	
  

 	
  

 	
  

 
	
 GAS-ONE LTD.

 
	
 as Borrower

 
	
  

 
	
 - and -

 
	
  

 
	
 THE BANKS AND FINANCIAL INSTITUTIONS

 
	
 listed in Schedule 1

 
	
 as Lenders

 
	
  

 
	
 - and -

 
	
  

 
	
 DANISH SHIP FINANCE A/S (DANMARKS
 SKIBSKREDIT A/S)

 
	
 as Agent

 
	
 and as Security Trustee

 
	
  

 
	
  

 	 

 	
  

 
	
  

 
	
  

 	
 LOAN AGREEMENT

 	
  

 
	
  

 
	
  

 	 

 	
  

 
	
  

 
	
 relating to a facility of up to US$174,033,000

 
	
 to finance the 154,800 cubic meter Liquefied Natural Gas Carrier

 
	
 under construction at

 
	
 Samsung Heavy Industries Co., Ltd. having Hull No. 1641

 
	
  

 
	
 WATSON, FARLEY & WILLIAMS

 
	
 Piraeus

 

	
  

 	
  

 	
  

 
	
 INDEX

 
	
  

 	
  

 	
  

 
	
 Clause

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 
	
 1

 	
 INTERPRETATION

 	
 1

 
	
  

 
	
 2

 	
 FACILITY

 	
 13

 
	
  

 
	
 3

 	
 POSITION OF
 THE LENDERS

 	
 13

 
	
  

 
	
 4

 	
 DRAWDOWN

 	
 13

 
	
  

 
	
 5

 	
 INTEREST

 	
 14

 
	
  

 
	
 6

 	
 INTEREST
 PERIODS

 	
 16

 
	
  

 
	
 7

 	
 DEFAULT
 INTEREST

 	
 17

 
	
  

 
	
 8

 	
 REPAYMENT
 AND PREPAYMENT

 	
 18

 
	
  

 
	
 9

 	
 CONDITIONS
 PRECEDENT

 	
 19

 
	
  

 
	
 10

 	
 REPRESENTATIONS
 AND WARRANTIES

 	
 20

 
	
  

 
	
 11

 	
 GENERAL
 UNDERTAKINGS

 	
 23

 
	
  

 
	
 12

 	
 CORPORATE
 UNDERTAKINGS

 	
 26

 
	
  

 
	
 13

 	
 INSURANCE

 	
 27

 
	
  

 
	
 14

 	
 SHIP
 COVENANTS

 	
 30

 
	
  

 
	
 15

 	
 SECURITY
 COVER

 	
 34

 
	
  

 
	
 16

 	
 PAYMENTS AND
 CALCULATIONS

 	
 35

 
	
  

 
	
 17

 	
 APPLICATION
 OF RECEIPTS

 	
 37

 
	
  

 
	
 18

 	
 EVENTS OF
 DEFAULT

 	
 37

 
	
  

 
	
 19

 	
 FEES AND
 EXPENSES

 	
 42

 
	
  

 
	
 20

 	
 INDEMNITIES

 	
 43

 
	
  

 
	
 21

 	
 NO SET-OFF
 OR TAX DEDUCTION

 	
 45

 
	
  

 
	
 22

 	
 ILLEGALITY,
 ETC

 	
 46

 
	
  

 
	
 23

 	
 INCREASED
 COSTS

 	
 47

 
	
  

 
	
 24

 	
 SET-OFF

 	
 48

 
	
  

 
	
 25

 	
 TRANSFERS
 AND CHANGES IN LENDING OFFICES

 	
 49

 
	
  

 
	
 26

 	
 VARIATIONS
 AND WAIVERS

 	
 52

 
	
  

 
	
 27

 	
 NOTICES

 	
 53

 
	
  

 
	
 28

 	
 SUPPLEMENTAL

 	
 54

 
	
  

 
	
 29

 	
 LAW AND
 JURISDICTION

 	
 55

 
	
  

 
	
 SCHEDULE 1
 LENDERS AND COMMITMENTS

 	
 56

 
	
  

 
	
 SCHEDULE 2

 	
 57

 
	
  

 
	
 DRAWDOWN
 NOTICE

 	
 57

 
	
  

 
	
 SCHEDULE 3

 	
 58

 
	
  

 
	
 CONDITION
 PRECEDENT DOCUMENTS

 	
 58

 

	
  

 	
  

 	
  

 
	
 SCHEDULE 4

 	
 62

 
	
  

 
	
 TRANSFER
 CERTIFICATE

 	
 62

 
	
  

 
	
 SCHEDULE 5

 	
 65

 
	
  

 
	
 LIST OF LNG
 SHIPBROKERS

 	
 65

 
	
  

 
	
 EXECUTION
 PAGE

 	
 66

 

THIS AGREEMENT is
made on 14 March 2008

BETWEEN

	
  

 	
  

 
	
 (1)

 	
 GAS-ONE
 LTD., a company
 incorporated in Bermuda whose registered office is at Clarendon House, 2 Church Street,
 Hamilton HM11, Bermuda (the “Borrower”);

 
	
  

 	
  

 
	
 (2)

 	
 THE BANKS
 AND FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders;

 
	
  

 	
  

 
	
 (3)

 	
 DANISH
 SHIP FINANCE A/S (DANMARKS SKIBSKREDIT A/S), as Agent;
 and

 
	
  

 	
  

 
	
 (4)

 	
 DANISH
 SHIP FINANCE A/S (DANMARKS SKIBSKREDIT A/S), as Security
 Trustee.

 
	
  

 	
  

 
	
 BACKGROUND

 
	
  

 	
  

 
	
  

 	
 The
 Lenders have agreed to make available to the Borrower a facility of up to
 $174,033,000 for the purpose of financing 75 per cent. of the Project Cost of
 a 154,800 cubic meter Liquified Natural Gas carrier currently having
 Builder’s Hull No. 1641 which is to be constructed by the Builder for, and purchased
 by, the Borrower.

 
	
  

 
	
 IT IS
 AGREED as follows:

 
	
  

 	
  

 
	
 1

 	
 INTERPRETATION

 
	
  

 	
  

 
	
 1.1

 	
 Definitions. Subject to Clause 1.5, in this Agreement:

 
	
  

 	
  

 
	
  

 	
 “Advance” means the principal amount of
 each borrowing by the Borrower under this Agreement;

 
	
  

 	
  

 
	
  

 	
 “Affected Lender” has the meaning given in
 Clause 5.5;

 
	
  

 	
  

 
	
  

 	
 “Agency and Trust Agreement” means the
 agency and trust agreement executed or to be executed between the Borrower,
 the Lenders, the Agent and the Security Trustee in the Agreed Form;

 
	
  

 	
  

 
	
  

 	
 “Agent” means Danish Ship Finance A/S
 (Danmarks Skibskredit A/S), acting in such capacity through its office at
 Sankt Annae Plads 3, DK-1250, Copenhagen K., Denmark, or any successor of it
 appointed under clause 5 of the Agency and Trust Agreement;

 
	
  

 	
  

 
	
  

 	
 “Agreed Form” means, in relation to any document, that document in the
 form approved in writing by the Agent (acting upon the instructions of all
 the Lenders) or as otherwise approved in accordance with any other approval
 procedure specified in any relevant provision of any Finance Document;

 
	
  

 	
  

 
	
  

 	
 “Approved Charter” means a charter in respect of the Ship
 entered or to be entered with a first- class charterer acceptable to the
 Lenders and on terms and conditions (including, without limitation, duration
 and charterhire) in all respects acceptable to the Lenders;

 
	
  

 	
  

 
	
  

 	
 “Approved Flag” means any of the Bermuda, Greek, Marshall Islands,
 Liberian, Panamanian, Cyprus, Maltese or Bahamas flags or any other flag as
 the Lenders may, in their absolute discretion, approve as the flag on which
 the Ship may be registered;

 

1

	
  

 	
  

 	
  

 
	
  

 	
 “Approved Flag State” means any of Bermuda, Greece, Marshall
 Islands, Liberia, Panama, Cyprus, Malta, Bahamas or any other country in
 which the Lenders may, in their absolute discretion, approve that the Ship
 may be registered;

 
	
  

 	
  

 
	
  

 	
 “Approved Manager” means Ceres LNG Services Ltd., a company
 incorporated in Bermuda whose registered office is at Clarendon House, 2
 Church Street, Hamilton HM11, Bermuda, or any other company which the Agent
 may, with the authorisation of the Majority Lenders, approve from time to
 time as the manager of the Ship;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
 (a) 

 	
 10
 December 2010 (or such later date as the Agent may, with the authorisation of
 the Majority Lenders, agree with the Borrower); or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 if
 earlier, the date on which the Total Commitments are fully borrowed,
 cancelled or terminated;

 
	
  

 	
  

 
	
  

 	
 “Builder” means Samsung Heavy Industries Co., Ltd., a corporation
 incorporated in the Republic of Korea whose registered office is at 11th
 Floor, KIPS Center, 647-9 Yeoksam-Dong, Kangnam- Gu, Seoul, Korea;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
 “Commitment” means, in relation to a Lender, the amount set opposite its
 name in Schedule 1 as that amount may be reduced, cancelled or terminated in
 accordance with this Agreement (and “Total Commitments” means the aggregate of the Commitments
 of all the Lenders);

 
	
  

 	
  

 
	
  

 	
 “Contract Price” means $214,750,000, being the aggregate amount payable by
 the Borrower to (a) the Original Buyer pursuant to the Transfer Agreement and
 (b) the Builder pursuant to the Shipbuilding Contract;

 
	
  

 	
  

 
	
  

 	
 “Contractual Currency” has the meaning given in Clause 20.4;

 
	
  

 	
  

 
	
  

 	
 “Contribution” means, in relation to a Lender, the part of the Loan which
 is owing to that Lender;

 
	
  

 	
  

 
	
  

 	
 “Creditor Party” means the Agent, the Security Trustee or any Lender,
 whether as at the date of this Agreement or at any later time;

 
	
  

 	
  

 
	
  

 	
 “Delivery Date” means the date on which the Ship is actually delivered to
 the Borrower in accordance with the Shipbuilding Contract;

 
	
  

 	
  

 
	
  

 	
 “Diamond” means Diamond Marine Insurance Company Ltd., a company
 incorporated in Bermuda with its registered office at Milner House, 18
 Parliament Street, Hamilton, HM12, Bermuda;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

2

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “Drawdown Notice” means a notice in the form set out in
 Schedule 2 (or in any other form which the Agent approves or reasonably
 requires);

 
	
  

 	
  

 
	
  

 	
 “Earnings” means all moneys whatsoever which are now, or later become,
 payable (actually or contingently) to the Borrower or the Security Trustee
 and which arise out of the use or operation of the Ship, including (but not
 limited to):

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 except
 to the extent that they fall within paragraph (b);

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) 

 	
 all
 freight, hire and passage moneys;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 compensation
 payable to the Borrower or the Security Trustee in the event of requisition
 of the Ship for hire;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 remuneration
 for salvage and towage services;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 demurrage
 and detention moneys;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 damages
 for breach (or payments for variation or termination) of any charterparty or
 other contract for the employment of the Ship; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vi)

 	
 all
 moneys which are at any time payable under any Insurances in respect of loss
 of hire; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 if
 and whenever the Ship is employed on terms whereby any moneys falling within
 paragraphs (a)(i) to (vi) are pooled or shared with any other person, that
 proportion of the net receipts of the relevant pooling or sharing arrangement
 which is attributable to the Ship;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Environmental Claim” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 any
 claim by any governmental, judicial or regulatory authority which arises out
 of an Environmental Incident or an alleged Environmental Incident or which
 relates to any Environmental Law; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any
 claim by any other person which relates to an Environmental Incident or to an
 alleged Environmental Incident,

 
	
  

 	
  

 	
  

 
	
  

 	
 and “claim” means
 a claim for damages, compensation, fines, penalties or any other payment of
 any kind whether or not similar to the foregoing; an order or direction to
 take, or not to take, certain action or to desist from or suspend certain
 action; and any form of enforcement or regulatory action, including the
 arrest or attachment of any asset;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Environmental Incident” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 any release of
 Environmentally Sensitive Material from the Ship; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any
 incident in which Environmentally Sensitive Material is released from a
 vessel other than the Ship and which involves a collision between the Ship
 and such other vessel or some other incident of navigation or operation, in
 either case, in connection with which the Ship is actually liable to be
 arrested, attached, detained or injuncted and/or the Ship and/or the Borrower
 and/or any operator or manager of the Ship is at fault or otherwise liable to
 any legal or administrative action in connection with the operation of the
 Ship; or

 

3

	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any
 other incident in which Environmentally Sensitive Material is released
 otherwise than from the Ship and in connection with which the Ship is
 actually or liable to be arrested and/or where the Borrower and/or any
 operator or manager of the Ship is at fault or otherwise liable to any legal
 or administrative action in connection with the operation of the Ship;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Environmental Law” means any law relating to pollution or
 protection of the environment, to the carriage of Environmentally Sensitive
 Material or to actual or threatened releases of Environmentally Sensitive
 Material;

 
	
  

 	
  

 
	
  

 	
 “Environmentally Sensitive Material” means oil, oil products and any other
 substance (including any chemical, gas or other hazardous or noxious
 substance) which is (or is capable of being or becoming) polluting, toxic or
 hazardous;

 
	
  

 	
  

 
	
  

 	
 “Event of Default” means any of the events or circumstances
 described in Clause 18.1;

 
	
  

 	
  

 
	
  

 	
 “Extra Pre-delivery Costs” means an amount of $17,294,000
 representing the costs incurred or to be incurred by the Borrower during the
 construction of the Ship (in addition to the Contract Price of the Ship);

 
	
  

 	
  

 
	
  

 	
 “Finance Documents” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the Agency and Trust
 Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the Guarantee;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 the Predelivery Security
 Assignment;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 the General Assignment;

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 the Mortgage;

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 the Reinsurances
 Assignment; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 any
 other document (whether creating a Security Interest or not) which is
 executed at any time by the Borrower or any other person as security for, or
 to establish any form of subordination or priorities arrangement in relation
 to, any amount payable to the Lenders under this Agreement or any of the
 other documents referred to in this definition;

 
	
  

 	
  

 
	
  

 	
 “Financial Indebtedness” means, in relation to a person (the “debtor”),
 a liability of the debtor:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 for
 principal, interest or any other sum payable in respect of any moneys
 borrowed or raised by the debtor;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 under
 any loan stock, bond, note or other security issued by the debtor;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 under
 any acceptance credit, guarantee or letter of credit facility or
 dematerialised equivalent made available to the debtor;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 under
 a financial lease, a deferred purchase consideration arrangement or any other
 agreement having the commercial effect of a borrowing or raising of money by
 the debtor;

 

4 

	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 under
 any foreign exchange transaction, any interest or currency swap or any other
 kind of derivative transaction entered into by the debtor or, if the
 agreement under which any such transaction is entered into requires netting
 of mutual liabilities, the liability of the debtor for the net amount; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 under
 a guarantee, indemnity or similar obligation entered into by the debtor in
 respect of a liability of another person which would fall within paragraphs
 (a) to (e) if the references to the debtor referred to the other person;

 
	
  

 	
  

 	
  

 
	
  

 	
 “GAAP” means generally accepted accounting
 principles in the United States of America established by the Financial
 Accounting Standards Board (FASB) including IFRS;

 
	
  

 	
  

 	
  

 
	
  

 	
 “General Assignment” means a general assignment of the
 Earnings, the Insurances and any Requisition Compensation in the Agreed Form;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Guarantee” means a guarantee executed or to be executed by the
 Guarantor in the Agreed Form;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Guarantor” means a company nominated by the Borrower and accepted by
 the Lenders as the company which shall execute the Guarantee;

 
	
  

 	
  

 	
  

 
	
  

 	
 “IFRS” means
 international accounting standards adopted by the International Accounting
 Standard Board (IASB) within the meaning of the IAS Regulations 1606/2002 to
 the extent applicable to the relevant financial statements;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Insurances” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 all
 policies and contracts of insurance, including entries of the Ship in any
 protection and indemnity or war risks association, which are effected in
 respect of the Ship, its Earnings or otherwise in relation to it; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 all
 rights and other assets relating to, or derived from, any of the foregoing,
 including any rights to a return of a premium;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Interest Period” means a period determined in accordance
 with Clause 6;

 
	
  

 	
  

 	
  

 
	
  

 	
 “ISM Code” means the International Safety Management Code (including
 the guidelines on its implementation), adopted by the International Maritime
 Organisation, as the same may be amended or supplemented 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);

 
	
  

 	
  

 	
  

 
	
  

 	
 “ISPS Code” means the International Ship and Port Facility Security
 Code as adopted by the International Maritime Organisation, as the same may
 be amended or supplemented from time to time;

 
	
  

 	
  

 	
  

 
	
  

 	
 “ISSC” means a valid and current
 International Ship Security Certificate issued under the ISPS Code;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Lender” means a bank or financial institution listed in Schedule 1 and
 acting through its branch indicated in Schedule 1 (or through another branch
 notified to the Borrower under Clause 25.14) or its successor or assign;

 

5

	
  

 	
  

 	
  

 
	
  

 	
 “LIBOR” means,
 in relation to any period for which an interest rate is to be determined
 under any provision of a Finance Document:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the
 rate per annum equal to the offered quotation for deposits in Dollars for a
 period equal to, or as near as possible equal to, that period which appears
 on REUTERS BBA Page LIBOR 01 at or about 11.00 a.m. (London time) on the
 Quotation Date for that period (and, for the purposes of this Agreement,
 “REUTERS BBA Page LIBOR 01” means the display designated as “Page 01” on the
 REUTERS Service or such other page as may replace Page 01 on that service for
 the purpose of displaying rates comparable to that rate or on such other
 service as may be nominated by the British Bankers’ Association as the
 information vendor for the purpose of displaying British Bankers’ Association
 Interest Settlement Rates for Dollars); or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 if
 no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum determined
 by the Agent to be the arithmetic mean (rounded upwards, if necessary, to the
 nearest one-sixteenth of one per cent.) of the rates per annum notified to
 the Agent by each Lender as the rate at which deposits in Dollars are offered
 to that Lender by leading banks in the London Interbank Market at that
 Lender’s request at or about 11.00 a.m. (London time) on the Quotation Date
 for that period for a period equal to that period and for delivery on the
 first Business Day of it;

 
	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
 “Major Casualty” means any casualty to the
 Ship in respect of which the claim or the aggregate of the claims against all
 insurers, before adjustment for any relevant franchise or deductible, exceeds
 $1,000,000 or the equivalent in any other currency;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Majority Lenders” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 before
 an Advance has been made, Lenders whose Commitments total 66.66 per cent. of
 the Total Commitments; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 after an Advance has been
 made, Lenders whose Contributions total 66.66 per cent. of the Loan;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Margin” means 0.625 per cent. per annum;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Mortgage” means the first priority or, as the case may be, preferred
 mortgage on the Ship under the Approved Flag and deed of covenant collateral
 thereto (if applicable) executed or to be executed by the Borrower in favour
 of the Security Trustee, or as the case may be, the Lenders in the Agreed
 Form;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Negotiation Period” has the meaning given in Clause 5.8;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Notifying Lender” has the meaning given in Clause 22.1 or
 Clause 23.1 as the context requires;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Novation Agreement” means the novation
 agreement to be made between the Builder, the Original Buyer and the Borrower
 in respect of the novation of the Shipbuilding Contract to the Borrower as
 buyer;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Original Buyer” means Chevron Transport Corporation Ltd., a corporation
 organised and existing under the laws of Bermuda and having its registered
 office at 11 Church Street, Hamilton, HM11, Bermuda;

 

6

	
  

 	
  

 	
  

 
	
  

 	
 “Payment Currency” has the meaning given in Clause 20.4;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Pertinent Document” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 any
 Finance Document;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any
 policy or contract of insurance contemplated by or referred to in Clause 13
 or in any other provision of this Agreement or another Finance Document;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any
 other document contemplated by or referred to in any Finance Document; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 any
 document which has been or is at any time sent by or to a Servicing Bank in
 contemplation of or in connection with any Finance Document or any policy,
 contract or document falling within paragraphs (b) or (c);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Pertinent Jurisdiction”, in relation to a
 company, means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 England
 and Wales;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the
 country under the laws of which the company is incorporated or formed;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 a
 country in which the company has the centre of its main interests or in which
 the company’s central management and control is or has recently been
 exercised;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 a
 country in which the overall net income of the company is subject to corporation
 tax, income tax or any similar tax;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 a
 country in which assets of the company (other than securities issued by, or
 loans to, related companies) having a substantial value are situated, in
 which the company maintains a branch or permanent place of business, or in
 which a Security Interest created by the company must or should be registered
 in order to ensure its validity or priority; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 a
 country the courts of which have jurisdiction to make a winding up,
 administration or similar order in relation to the company whether as main or
 territorial or ancillary proceedings or which would have such jurisdiction if
 their assistance were requested by the courts of a country referred to in
 paragraphs (b) or (c);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Pertinent Matter” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 any transaction or matter
 contemplated by, arising out of, or in connection with a Pertinent Document;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any statement relating to
 a Pertinent Document or to a transaction or matter falling within paragraph
 (a);

 
	
  

 	
  

 	
  

 
	
  

 	
 and
 covers any such transaction, matter or statement, whether entered into,
 arising or made at any time before the signing of this Agreement or on or at
 any time after that signing;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Potential Event of Default” means an event or circumstance which,
 with the giving of any notice, the lapse of time, a reasonable determination
 of the Majority Lenders and/or the satisfaction of any other condition, would
 constitute an Event of Default;

 

7

	
  

 	
  

 	
  

 
	
  

 	
 “Predelivery Security Assignment” means an assignment of the Shipbuilding
 Contract and of the Refund Guarantee in the Agreed Form;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Project Cost” means the amount of $232,044,000 representing the aggregate
 of the Contract Price and the Extra Pre-delivery Costs for the Ship;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Quotation Date” means, in relation to any period for which an interest rate
 is to be determined under any provision of a Finance Document, the day which
 is 2 Business Days before the first day of that period, unless market
 practice differs in the London Interbank Market for a currency, in which case
 the Quotation Date will be determined by the Agent in accordance with market
 practice in the London Interbank Market (and if quotations would normally be
 given by leading banks in the London Interbank Market on more than one day,
 the Quotation Date will be the last of those days);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Refund Guarantee” means an irrevocable guarantee numbered
 M0902-505-LG-00025 dated 6 May 2005 issued by the Refund Guarantor in favour
 of the Original Buyer under the Shipbuilding Contract as the same will be
 assigned by the Original Buyer to the Borrower pursuant to an assignment
 agreement to be made between the Original Buyer and the Borrower (with such
 assignment being acknowledged by the Refund Guarantor);

 
	
  

 	
  

 	
  

 
	
  

 	
 “Refund Guarantor” means The Export-Import Bank of Korea, a
 company incorporated in the Republic of Korea whose registered office is at
 16-2, Yoido-Dong, Yeongdeungo-Gu, Seoul 150 996, Korea;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Reinsurances Assignment” means an assignment of any reinsurances
 of the Insurances of the Ship made or to be made by Diamond and the Security
 Trustee in the Agreed Form;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Relevant Person” has the meaning given in Clause 18.9;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Repayment Date” means a date on which a repayment is required to be made
 under Clause 8;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Requisition Compensation” includes all compensation or other
 moneys payable by reason of any act or event such as is referred to in
 paragraph (b) of the definition of “Total Loss”;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Secured Liabilities” means all liabilities which the
 Borrower, the Security Parties or any of them have, at the date of this
 Agreement or at any later time or times, under or in connection with any
 Finance Document or any judgment relating to any Finance Document; and for
 this purpose, there shall be disregarded any total or partial discharge of
 these liabilities, or variation of their terms, which is effected by, or in
 connection with, any bankruptcy, liquidation, arrangement or other procedure
 under the insolvency laws of any country;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Security Interest” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 
 a mortgage, charge (whether fixed or floating) or pledge, any maritime or
 other lien or any other security interest of any kind;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 
 the security rights of a plaintiff under an action in rem; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 
 any arrangement entered into by a person (A) the effect of which is to place
 another person (B) in a position which is similar, in economic terms, to the
 position in which B would have been had he held a security interest over an
 asset of A; but this paragraph (c)

 

8

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 does
 not apply to a right of set off or combination of accounts conferred by the
 standard terms of business of a bank or financial institution;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Security Party” means the Guarantor and any other person (except a Creditor
 Party) who, as a surety or mortgagor, as a party to any subordination or
 priorities arrangement, or in any similar capacity, executes a document
 falling within the last paragraph of the definition of “Finance Documents”;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Security Period” means the period commencing on the date
 of this Agreement and ending on the date on which the Agent notifies the
 Borrower, the Security Parties and the Lenders that:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 
 all amounts which have become due for payment by the Borrower or any Security
 Party under the Finance Documents have been paid;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 
 no amount is owing or has accrued (without yet having become due for payment)
 under any Finance Document;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 
 neither the Borrower nor any Security Party has any future or contingent
 liability under Clause 19, 20 or 21 or any other provision of this Agreement
 or another Finance Document; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 the Agent, the Security Trustee and the Majority Lenders do not consider that
 there is a significant risk that any payment or transaction under a Finance
 Document would be set aside, or would have to be reversed or adjusted, in any
 present or possible future bankruptcy of the Borrower or a Security Party or
 in any present or possible future proceeding relating to a Finance Document
 or any asset covered (or previously covered) by a Security Interest created
 by a Finance Document;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Security Trustee” means Danish Ship Finance A/S (Danmarks
 Skibskredit A/S), acting in such capacity through its office at Sankt-Annae
 Plads 3, DK-1250 Copenhagen K, Denmark, or any successor of it appointed
 under clause 5 of the Agency and Trust Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Servicing Bank” means the Agent or the Security Trustee;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Shareholder” means the person or company disclosed by the Borrower to
 the Agent in writing as the owner of the whole of the issued share capital of
 the Borrower;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Ship” means
 the 154,800 cubic meter Liquefied Natural Gas carrier currently known as Hull
 No. 1641 which is to be constructed by the Builder for, and purchased by, the
 Borrower under the Shipbuilding Contract and upon delivery registered in the
 name of the Borrower under an Approved Flag;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Shipbuilding Contract” means the Shipbuilding Contract dated 29
 April 2005 as amended by an amendment No. 1 agreement dated 28 June 2007 made
 between the Builder and the Original Buyer for the construction by the
 Builder of the Ship and its purchase by the Original Buyer (as novated to the
 Borrower as buyer pursuant to the Novation Agreement) and as further
 supplemented and amended from time to time;

 
	
  

 	
  

 	
  

 
	
  

 	
 “SMC” means a safety management
 certificate issued in respect of the Ship in accordance with Rule 13 of the
 ISM Code;

 

9

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 “Total Loss” means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 actual, constructive,
 compromised, agreed or arranged total loss of the Ship;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any
 expropriation, confiscation, requisition or acquisition of the Ship, 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 official authority or by any person or persons claiming to be
 or to represent a government or official authority (excluding a requisition
 for hire for a fixed period not exceeding 1 year without any right to an
 extension) unless it is within 1 month redelivered to the Borrower’s full
 control; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any
 arrest, capture, seizure or detention of the Ship (including any hijacking or
 theft) unless it is within 1 month redelivered to the Borrower’s full
 control;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Total Loss Date” means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in
 the case of an actual loss of the Ship, the date on which it occurred or, if
 that is unknown, the date when the Ship was last heard of;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in
 the case of a constructive, compromised, agreed or arranged total loss of the
 Ship, the earliest 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
 Borrower with the Ship’s insurers in which the insurers agree to treat the
 Ship 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 Agent that the event constituting the total
 loss occurred;

 
	
  

 	
  

 	
  

 
	
  

 	
 “Transfer Agreement” means an agreement to be entered into
 between the Borrower and the Original Buyer in respect of the payment to be
 made by the Borrower to the Original Buyer in order to effect the novation of
 the Shipbuilding Contract to the Borrower; and

 
	
  

 	
  

 	
  

 
	
  

 	
 “Trust Property” has the meaning given in clause 3.1 of the Agency and Trust
 Agreement.

 
	
  

 	
  

 
	
 1.2

 	
 Construction
 of certain terms.
 In this Agreement:

 
	
  

 	
  

 
	
  

 	
 “administration notice” means a notice appointing an
 administrator, a notice of intended appointment and any other notice which is
 required by law (generally or in the case concerned) to be filed with the
 court or given to a person prior to, or in connection with, the appointment
 of an administrator;

 
	
  

 	
  

 
	
  

 	
 “approved” means, for the purposes of Clause 13, approved in writing
 by the Agent;

 
	
  

 	
  

 
	
  

 	
 “asset” includes every kind of property,
 asset, interest or right, including any present, future or contingent right
 to any revenues or other payment;

 
	
  

 	
  

 
	
  

 	
 “company” includes any partnership, joint venture and unincorporated
 association;

 
	
  

 	
  

 
	
  

 	
 “consent” includes an authorisation, consent, approval, resolution, licence,
 exemption, filing, registration, notarisation and legalisation;

 

10

	
  

 	
  

 
	
  

 	
 “contingent liability” means a liability which is not certain
 to arise and/or the amount of which remains unascertained;

 
	
  

 	
  

 
	
  

 	
 “document” includes a deed; also a letter, fax or telex;

 
	
  

 	
  

 
	
  

 	
 “excess risks” means the proportion of claims for general average, salvage
 and salvage charges not recoverable under the hull and machinery policies in
 respect of the Ship in consequence of its insured value being less than the
 value at which the Ship is assessed for the purpose of such claims;

 
	
  

 	
  

 
	
  

 	
 “expense” means any kind of cost, charge
 or expense (including all legal costs, charges and expenses) and any
 applicable value added or other tax;

 
	
  

 	
  

 
	
  

 	
 “law” includes
 any order or decree, any form of delegated legislation, any treaty or international
 convention and any regulation or resolution of the Council of the European
 Union, the European Commission, the United Nations or its Security Council;

 
	
  

 	
  

 
	
  

 	
 “legal or administrative action” means any legal proceeding or
 arbitration and any administrative or regulatory action or investigation;

 
	
  

 	
  

 
	
  

 	
 “liability” includes every kind of debt or liability (present or
 future, certain or contingent), whether incurred as principal or surety or
 otherwise;

 
	
  

 	
  

 
	
  

 	
 “months” shall be construed in accordance with Clause 1.3;

 
	
  

 	
  

 
	
  

 	
 “obligatory insurances” means all insurances effected, or which
 the Borrower is obliged to effect, under Clause 13 or any other provision of
 this Agreement or another Finance Document;

 
	
  

 	
  

 
	
  

 	
 “parent company” has the meaning given in Clause 1.4;

 
	
  

 	
  

 
	
  

 	
 “person” includes any company; any state, political sub-division of a state
 and local or municipal authority; and any international organisation;

 
	
  

 	
  

 
	
  

 	
 “policy”, in relation to any insurance,
 includes a slip, cover note, certificate of entry or other document
 evidencing the contract of insurance or its terms;

 
	
  

 	
  

 
	
  

 	
 “protection and indemnity risks” means the usual risks covered by a
 protection and indemnity association managed in London, including pollution
 risks 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 (Hulls) (1/11/95)or
 clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute
 Amended Running Down Clause (1/10/71) or any equivalent provision;

 
	
  

 	
  

 
	
  

 	
 “regulation” includes any regulation, rule, official directive, request
 or guideline whether or not having the force of law, of any intergovernmental
 or supranational body, agency, department or regulatory, self-regulatory or
 other authority or organisation;

 
	
  

 	
  

 
	
  

 	
 “subsidiary” has the meaning given in Clause 1.4;

 
	
  

 	
  

 
	
  

 	
 “tax” includes
 any present or future tax, duty, impost, levy or charge of any kind which is
 imposed by any state, any political sub-division of a state or any local or
 municipal authority (including any such imposed in connection with exchange
 controls), and any connected penalty, interest or fine; and

 

11

	
  

 	
  

 
	
  

 	
 “war risks” includes the risk of mines and all risks excluded by clause
 29 of the International Hull Clauses (1/11/02 or 1/11/03), clause 24 of the
 Institute Time Clauses (Hulls) (1/11/95) or clause 23 of the Institute Time
 Clauses (Hulls) (1/10/83).

 
	
  

 	
  

 
	
 1.3

 	
 Meaning of “month”. A period of one or more “months” ends on the day in the relevant calendar month numerically
 corresponding to the day of the calendar month on which the period started (“the numerically corresponding day”), but:

 
	
  

 	
  

 
	
 (a)

 	
 on
 the Business Day following the numerically corresponding day if the
 numerically corresponding day is not a Business Day or, if there is no later
 Business Day in the same calendar month, on the Business Day preceding the
 numerically corresponding day; or

 
	
  

 	
  

 
	
 (b)

 	
 on
 the last Business Day in the relevant calendar month, if the period started
 on the last Business Day in a calendar month or if the last calendar month of
 the period has no numerically corresponding day; 

 
	
  

 	
  

 
	
  

 	
 and
 “month” and “monthly” shall be construed accordingly.

 
	
  

 	
  

 
	
 1.4

 	
 Meaning
 of “subsidiary”. A company (S) is a subsidiary of another company (P) if:

 
	
  

 	
  

 
	
 (a)

 	
 a
 majority of the issued shares in S (or a majority of the issued shares in S
 which carry unlimited rights to capital and income distributions) are
 directly owned by P or are indirectly attributable to P; or

 
	
  

 	
  

 
	
 (b)

 	
 P
 has direct or indirect control over a majority of the voting rights attaching
 to the issued shares of S; or

 
	
  

 	
  

 
	
 (c)

 	
 P has the direct or indirect
 power to appoint or remove a majority of the directors of S; or

 
	
  

 	
  

 
	
 (d)

 	
 P
 otherwise has the direct or indirect power to ensure that the affairs of S
 are conducted in accordance with the wishes of P;

 
	
  

 	
  

 
	
  

 	
 and
 any company of which S is a subsidiary is a parent company of S.

 
	
  

 	
  

 
	
 1.5

 	
 General Interpretation. In this Agreement:

 
	
  

 	
  

 
	
 (a)

 	
 references
 to, or to a provision of, a Finance Document or any other document are
 references to it as amended or supplemented, whether before the date of this
 Agreement or otherwise;

 
	
  

 	
  

 
	
 (b)

 	
 references
 to, or to a provision of, any law include any amendment, extension, re-enactment or replacement, whether made before the date of this Agreement or
 otherwise;

 
	
  

 	
  

 
	
 (c)

 	
 words
 denoting the singular number shall include the plural and vice versa; and

 
	
  

 	
  

 
	
 (d)

 	
 Clauses
 1.1 to 1.5 apply unless the contrary intention appears.

 
	
  

 	
  

 
	
 1.6

 	
 Headings. In interpreting a Finance Document or any provision of a Finance
 Document, all clause, sub-clause and other headings in that and any other
 Finance Document shall be entirely disregarded.

 

12

	
  

 	
  

 	
  

 
	
 2

 	
 FACILITY

 
	
  

 	
  

 	
  

 
	
 2.1

 	
 Amount of facility.
 Subject to the other provisions of this Agreement, the Lenders shall make
 available to the Borrower a loan facility not exceeding the lesser of (a)
 $174,033,000 and (b) 75 per cent. of the Project Cost of the Ship.

 
	
  

 	
  

 	
  

 
	
 2.2

 	
 Lenders’
 participations in Loan. Subject to the other
 provisions of this Agreement, each Lender shall participate in each Advance
 in the proportion which, as at the relevant Drawdown Date, its Commitment
 bears to the Total Commitments.

 
	
  

 	
  

 	
  

 
	
 2.3

 	
 Purpose of Loan.
 The Borrower undertakes with each Creditor Party to use each Advance only for
 the purpose stated in the preamble to this Agreement.

 
	
  

 	
  

 	
  

 
	
 3

 	
 POSITION OF THE LENDERS

 
	
  

 	
  

 	
  

 
	
 3.1

 	
 Interests of
 Lenders several. The rights of the Lenders under
 this Agreement are several.

 
	
  

 	
  

 	
  

 
	
 3.2

 	
 Individual Lender’s
 right of action. Each Lender shall be entitled to
 sue for any amount which has become due and payable by the Borrower to it
 under this Agreement without joining the Agent, the Security Trustee or any
 other Lender as additional parties in the proceedings.

 
	
  

 	
  

 	
  

 
	
 3.3

 	
 Proceedings by
 individual Lender requiring Majority Lender consent.
 Except as provided in Clause 3.2, no Lender may commence proceedings
 against the Borrower or any Security Party in connection with a Finance
 Document without the prior consent of the Majority Lenders.

 
	
  

 	
  

 	
  

 
	
 3.4

 	
 Obligations of
 Lenders several. The obligations of the Lenders
 under this Agreement are several; and a failure of a Lender to perform its
 obligations under this Agreement shall not result in:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 the obligations of the other Lenders being increased; nor

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 the Borrower, any Security Party or any other Lender being discharged
 (in whole or in part) from its obligations under any Finance Document;

 
	
  

 	
  

 	
  

 
	
  

 	
 and in no circumstances shall a Lender have any responsibility for a
 failure of another Lender to perform its obligations under this Agreement.

 
	
  

 	
  

 	
  

 
	
 4

 	
 DRAWDOWN

 
	
  

 	
  

 	
  

 
	
 4.1

 	
 Request for
 Advance. Subject to the following conditions, the
 Borrower may request an Advance to be made by ensuring that the Agent
 receives a completed Drawdown Notice not later than 11.00 a.m. (Copenhagen
 time), 5 Business Days prior to the intended Drawdown Date (other than in the
 case of the Drawdown Notice in respect of the first Advance which shall be
 received by the Agent no later than 11.00 a.m. (Copenhagen time) on the
 Drawdown Date for that Advance).

 
	
  

 	
  

 	
  

 
	
 4.2

 	
 Availability.
 The conditions referred to in Clause 4.1 are that:

 
	
  

 	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 the amount of each Advance shall not exceed:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 in the case of the first Advance, $80,804,648;

 

13

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 in the case of the second Advance, $16,903,835; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 in the case of the third Advance, $76,324,517;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 the aggregate amount of the Advances shall not exceed the lesser of:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 the Total Commitments; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 75 per cent. of the Project Cost; and

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 if the Borrower requests less than the maximum amount of an Advance,
 the amount not requested may be borrowed at a later stage Provided
 that there shall not be more than 3 Advances and no amounts may be
 drawdown after the Drawdown Date of the third Advance.

 
	
  

 	
  

 	
  

 
	
 4.3

 	
 Notification to
 Lenders of receipt of a Drawdown Notice. The Agent
 shall promptly notify the Lenders that it has received a Drawdown Notice and
 shall inform each Lender of:

 
	
  

 	
  

 
	
 (a)

 	
 the amount of the Advance and the Drawdown Date;

 
	
  

 	
  

 
	
 (b)

 	
 the amount of that Lender’s participation in the Advance;

 
	
  

 	
  

 
	
 (c)

 	
 the duration of the first Interest Period.

 
	
  

 	
  

 
	
 4.4

 	
 Drawdown Notice
 irrevocable. A Drawdown Notice must be signed by a
 duly authorised signatory of the Borrower; and once served, a Drawdown Notice
 cannot be revoked without the prior consent of the Agent, acting with the
 authorisation of the Majority Lenders.

 
	
  

 	
  

 
	
 4.5

 	
 Lenders to make
 available Contributions. Subject to the provisions
 of this Agreement, each Lender shall, on and with value on each Drawdown
 Date, make available to the Agent for the account of the Borrower the amount
 due from that Lender on that Drawdown Date under Clause 2.2.

 
	
  

 	
  

 
	
 4.6

 	
 Disbursement of
 Advance. Subject to the provisions of this
 Agreement, the Agent shall on each Drawdown Date pay to the Borrower the
 amounts which the Agent receives from the Lenders under Clause 4.5; and
 that payment to the Borrower shall be made:

 
	
  

 	
  

 
	
 (a)

 	
 to the account of the Original Buyer or the Builder, as the case may
 be, which the Borrower specifies in the Drawdown Notice and any amount in excess of
 the amounts payable to either the Original Buyer or the Builder hereunder to
 the account of the Borrower; and

 
	
  

 	
  

 
	
 (b)

 	
 in the like funds as the Agent received the payments from the
 Lenders.

 
	
  

 	
  

 
	
 4.7

 	
 Disbursement of
 Advance to third party. The payment by the Agent
 under Clause 4.6 to the Original Buyer or the Builder, as the case may
 be, shall constitute the making of the Advance and the Borrower shall
 thereupon become indebted, as principal and direct obligor, to each Lender in
 an amount equal to that Lender’s Contribution.

 
	
  

 	
  

 	
  

 
	
 5

 	
 INTEREST

 
	
  

 	
  

 
	
 5.1

 	
 Payment of normal
 interest. Subject to the provisions of this
 Agreement, interest on the Loan in respect of each Interest Period shall be
 paid by the Borrower on the last day of that Interest Period.

 

14

	
  

 	
  

 
	
 5.2

 	
 Normal rate of
 interest. Subject to the provisions of this
 Agreement, the rate of interest on the Loan in respect of an Interest Period
 shall be the aggregate of the Margin and LIBOR for that Interest Period.

 
	
  

 	
  

 
	
 5.3

 	
 Payment of accrued
 interest. In the case of an Interest Period of 12
 months or longer, accrued interest shall be paid every 6 months during that
 Interest Period and on the last day of that Interest Period.

 
	
  

 	
  

 
	
 5.4

 	
 Notification of
 Interest Periods and rates of normal interest. The
 Agent shall notify the Borrower and each Lender of:

 
	
  

 	
  

 
	
 (a)

 	
 each rate of interest; and

 
	
  

 	
  

 
	
 (b)

 	
 the duration of each Interest Period;

 
	
  

 	
  

 
	
  

 	
 as soon as reasonably practicable after each is determined.

 
	
  

 	
  

 
	
 5.5

 	
 Market disruption.
 The following provisions of this Clause 5 apply if:

 
	
  

 	
  

 
	
 (a)

 	
 at least 1 Business Day before the start of an Interest Period,
 Lenders having Contributions together amounting to more than 50 per cent. of
 the Loan (or, if the Loan has not been made, Commitments amounting to more
 than 50 per cent. of the Total Commitments) notify the Agent that LIBOR fixed
 by the Agent would not accurately reflect the cost to those Lenders of
 funding their respective Contributions (or any part of them) during the
 Interest Period in the London Interbank Market at or about 11.00 a.m. (London
 time) on the Quotation Date for the Interest Period; or

 
	
  

 	
  

 
	
 (b)

 	
 at least 1 Business Day before the start of an Interest Period, the
 Agent is notified by a Lender (the “Affected Lender”)that for any reason it is
 unable to obtain Dollars in the London Interbank Market in order to fund its
 Contribution (or any part of it) during the Interest Period.

 
	
  

 	
  

 
	
 5.6

 	
 Notification of
 market disruption. The Agent shall promptly notify
 the Borrower and each of the Lenders stating the circumstances falling within
 Clause 5.5 which have caused its notice to be given.

 
	
  

 	
  

 
	
 5.7

 	
 Suspension of
 drawdown. If the Agent’s notice under
 Clause 5.6 is served before an Advance is made:

 
	
  

 	
  

 
	
 (a)

 	
 in a case falling within Clauses 5.5(a) or (b), the Lenders’
 obligations to make the Advance;

 
	
  

 	
  

 
	
 (b)

 	
 in a case falling within Clause 5.5(c), the Affected Lender’s
 obligation to participate in the Advance;

 
	
  

 	
  

 
	
  

 	
 shall be suspended while the circumstances referred to in the Agent’s
 notice continue.

 
	
  

 	
  

 
	
 5.8

 	
 Negotiation of
 alternative rate of interest. If the Agent’s notice
 under Clause 5.6 is served after an Advance is made, the Borrower, the
 Agent and the Lenders or (as the case may be) the Affected Lender shall use
 reasonable endeavours to agree, within the 30 days after the date on which
 the Agent serves its notice under Clause 5.6 (the “Negotiation Period”), an
 alternative interest rate or (as the case may be) an alternative basis for
 the Lenders or (as the case may be) the Affected Lender to fund or continue
 to fund their or its Contribution during the Interest Period concerned.

 

15

	
  

 	
  

 
	
 5.9

 	
 Application of
 agreed alternative rate of interest. Any alternative
 interest rate or an alternative basis which is agreed during the Negotiation
 Period shall take effect in accordance with the terms agreed.

 
	
  

 	
  

 
	
 5.10

 	
 Alternative rate of
 interest in absence of agreement. If an alternative
 interest rate or alternative basis is not agreed within the Negotiation
 Period, and the relevant circumstances are continuing at the end of the
 Negotiation Period, then the Agent shall, with the agreement of each Lender
 or (as the case may be) the Affected Lender, set an interest period and
 interest rate representing the cost of funding of the Lenders or (as the case
 may be) the Affected Lender in Dollars or in any available currency of their
 or its Contribution plus the Margin; and the procedure provided for by this
 Clause 5.10 shall be repeated if the relevant circumstances are
 continuing at the end of the interest period so set by the Agent.

 
	
  

 	
  

 
	
 5.11

 	
 Notice of
 prepayment. If the Borrower does not agree with an
 interest rate set by the Agent under Clause 5.10, the Borrower may give
 the Agent not less than 15 Business Days’ notice of its intention to prepay
 at the end of the interest period set by the Agent.

 
	
  

 	
  

 
	
 5.12

 	
 Prepayment;
 termination of Commitments. A notice under
 Clause 5.11 shall be irrevocable; the Agent shall promptly notify the
 Lenders or (as the case may require) the Affected Lender of the Borrower’s
 notice of intended prepayment; and:

 
	
  

 	
  

 
	
 (a)

 	
 on the date on which the Agent serves that notice, the Total
 Commitments or (as the case may require) the Commitment of the Affected
 Lender shall be cancelled; and

 
	
  

 	
  

 
	
 (b)

 	
 on the last Business Day of the interest period set by the Agent, the
 Borrower shall prepay (without premium or penalty) the Loan or, as the case
 may be, the Affected Lender’s Contribution, together with accrued interest
 thereon at the applicable rate plus the Margin.

 
	
  

 	
  

 
	
 5.13

 	
 Application of
 prepayment. The provisions of Clause 8 shall
 apply in relation to the prepayment.

 
	
  

 	
  

 
	
 6

 	
 INTEREST PERIODS

 
	
  

 	
  

 
	
 6.1

 	
 Commencement of
 Interest Periods. The first Interest Period
 applicable to an Advance shall commence on the Drawdown Date and each
 subsequent Interest Period shall commence on the expiry of the preceding
 Interest Period.

 
	
  

 	
  

 
	
 6.2

 	
 Duration of normal
 Interest Periods. Subject to Clauses 6.3 and
 6.4, each Interest Period shall be:

 
	
  

 	
  

 
	
 (a)

 	
 1, 2, 3, 6 or 12 months as notified by the Borrower to the Agent not
 later than 11.00 a.m. (Copenhagen time), 3 Business Days before the
 commencement of such Interest Period (other than in the case of the first
 Interest Period which shall be notified to the Agent not later than 11.00
 a.m. (Copenhagen time) on the date of the commencement of that Interest
 Period); or

 
	
  

 	
  

 
	
 (b)

 	
 in the case of the first Interest Period applicable to the second and
 any subsequent Advance, a period ending on the last day of the Interest
 Period applicable to the first Advance then current, whereupon all of the
 Advances shall be consolidated and treated as a single Advance;

 
	
  

 	
  

 
	
 (c)

 	
 3 months, if the Borrower fails to notify the Agent by the time
 specified in paragraph (a); or

 

16

	
  

 	
  

 	
  

 
	
 (d)

 	
 such other period as the Agent may, with the authorisation of the
 Majority Lenders, agree with the Borrower

 
	
  

 	
  

 	
  

 
	
  

 	
 Provided that no
 more than 3 1-month Interest Periods will be available to the Borrower in any
 12-month period (with the first such period commencing on the first Drawdown
 Date and each subsequent period commencing on each anniversary thereof).

 
	
  

 	
  

 
	
 6.3

 	
 Duration of
 Interest Periods for repayment instalments. In
 respect of an amount due to be repaid under Clause 8 on a particular
 Repayment Date, an Interest Period shall end on that Repayment Date.

 
	
  

 	
  

 
	
 6.4

 	
 Non-availability of
 matching deposits for Interest Period selected. If,
 after the Borrower has selected and the Lenders have agreed an Interest
 Period longer than 6 months, any Lender notifies the Agent by 11.00 a.m.
 (Copenhagen time) on the third Business Day before the commencement of the
 Interest Period that it is not satisfied that deposits in Dollars for a
 period equal to the Interest Period will be available to it in the London
 Interbank Market when the Interest Period commences, the Interest Period
 shall be of 6 months.

 
	
  

 	
  

 
	
 7

 	
 DEFAULT INTEREST

 
	
  

 	
  

 	
  

 
	
 7.1

 	
 Payment of default
 interest on overdue amounts. The Borrower shall pay
 interest in accordance with the following provisions of this Clause 7 on
 any amount payable by the Borrower under any Finance Document which the
 Agent, the Security Trustee or the other designated payee does not receive on
 or before the relevant date, that is:

 
	
  

 	
  

 
	
 (a)

 	
 the date on which the Finance Documents provide that such amount is
 due for payment; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 if a Finance Document provides that such amount is payable on demand,
 the date on which the demand is served; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 if such amount has become immediately due and payable under
 Clause 18.4, the date on which it became immediately due and payable.

 
	
  

 	
  

 	
  

 
	
 7.2

 	
 Default rate of
 interest. Interest shall accrue on an overdue amount
 from (and including) the relevant date until the date of actual payment (as
 well after as before judgment) at the rate per annum determined by the Agent
 to be 2 per cent. above:

 
	
  

 	
  

 
	
 (a)

 	
 in the case of an overdue amount of principal, the higher of the
 rates set out at Clauses 7.3(a) and (b); or

 
	
  

 	
  

 
	
 (b)

 	
 in the case of any other overdue amount, the rate set out at
 Clause 7.3(b).

 
	
  

 	
  

 
	
 7.3

 	
 Calculation of
 default rate of interest. The rates referred to in
 Clause 7.2 are:

 
	
  

 	
  

 
	
 (a)

 	
 the rate applicable to the overdue principal amount immediately prior
 to the relevant date (but only for any unexpired part of any then current
 Interest Period);

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 the Margin plus, in respect of successive periods of any duration
 (including at call) up to 3 months which the Agent may select from time to
 time:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 LIBOR; or

 

17

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 if the Agent determines that Dollar deposits for any such period are
 not being made available to a Lender or (as the case may be) Lenders by
 leading banks in the London Interbank Market in the ordinary course of
 business, a rate from time to time determined by the Agent by reference to
 the cost of funds to the Agent from such other sources as the Agent may from
 time to time determine.

 
	
  

 	
  

 	
  

 
	
 7.4

 	
 Notification of
 interest periods and default rates. The Agent shall
 promptly notify the Lenders and the Borrower of each interest rate determined
 by the Agent under Clause 7.3 and of each period selected by the Agent
 for the purposes of paragraph (b) of that Clause; but this shall not be
 taken to imply that the Borrower is liable to pay such interest only with
 effect from the date of the Agent’s notification.

 
	
  

 	
  

 
	
 7.5

 	
 Payment of accrued
 default interest. Subject to the other provisions of
 this Agreement, any interest due under this Clause shall be paid on the
 last day of the period by reference to which it was determined; and the
 payment shall be made to the Agent for the account of the Creditor Party to
 which the overdue amount is due.

 
	
  

 	
  

 
	
 7.6

 	
 Compounding of
 default interest. Any such interest which is not
 paid at the end of the period by reference to which it was determined shall
 thereupon be compounded.

 
	
  

 	
  

 
	
 8

 	
 REPAYMENT AND PREPAYMENT

 
	
  

 	
  

 
	
 8.1

 	
 Amount of repayment
 instalments. The Borrower shall repay the Loan by:

 
	
  

 	
  

 
	
 (a)

 	
 40 consecutive quarterly instalments, the first 12 instalments of
 $2,812,913 each and the next 28 instalments of $2,062,913 each; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 a balloon instalment of $82,516,480 (the “Balloon Instalment”)

 
	
  

 	
  

 
	
  

 	
 Provided that if
 the aggregate amount of the Loan drawn down by the Borrower is less than
 $174,033,000, each repayment instalment and the Balloon Instalment shall be
 reduced pro rata by an amount in aggregate equal to such undrawn amount.

 
	
  

 	
  

 
	
 8.2

 	
 Repayment Dates.
 The first instalment shall be repaid on the date falling three months after
 the final Drawdown Date and the last instalment together with the Balloon
 Instalment on the date falling on the tenth anniversary of the final Drawdown
 Date.

 
	
  

 	
  

 
	
 8.3

 	
 Final Repayment
 Date. On the final Repayment Date, the Borrower
 shall additionally pay to the Agent for the account of the Creditor Parties
 all other sums then accrued or owing under any Finance Document.

 
	
  

 	
  

 
	
 8.4

 	
 Voluntary
 prepayment. Subject to the following conditions, the
 Borrower may prepay the whole or any part of the Loan on the last day of an
 Interest Period.

 
	
  

 	
  

 
	
 8.5

 	
 Conditions for voluntary
 prepayment. The conditions referred to in
 Clause 8.4 are that:

 
	
  

 	
  

 
	
 (a)

 	
 a partial prepayment shall be $1,000,000 or a multiple of $1,000,000;

 
	
  

 	
  

 
	
 (b)

 	
 the Agent has received from the Borrower at least 15 Business Days’
 prior written notice specifying the amount to be prepaid and the date on
 which the prepayment is to be made; and

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 the Borrower has provided evidence satisfactory to the Agent that any
 consent required by the Borrower or any Security Party in connection with the
 prepayment has been obtained and remains 

 

18

	
  

 	
  

 	
  

 
	
  

 	
 in force, and that any requirement relevant to this Agreement which
 affects the Borrower or any Security Party has been complied with.

 
	
  

 	
  

 	
  

 
	
 8.6

 	
 Effect of notice of
 prepayment. A prepayment notice may not be withdrawn
 or amended without the consent of the Agent, given with the authorisation of
 the Majority Lenders, and the amount specified in the prepayment notice shall
 become due and payable by the Borrower on the date for prepayment specified
 in the prepayment notice.

 
	
  

 	
  

 
	
 8.7

 	
 Notification of
 notice of prepayment. The Agent shall notify the
 Lenders promptly upon receiving a prepayment notice, and shall provide any
 Lender which so requests with a copy of any document delivered by the
 Borrower under Clause 8.5(c).

 
	
  

 	
  

 
	
 8.8

 	
 Mandatory
 prepayment. The Borrower shall be obliged to prepay
 the whole of the Loan:

 
	
  

 	
  

 
	
 (a)

 	
 if the Ship is sold, on or before the date on which the sale is
 completed by delivery of the Ship to the buyer; or

 
	
  

 	
  

 
	
 (b)

 	
 if the Ship becomes a Total Loss, on the earlier of the date falling
 180 days after the Total Loss Date and the date of receipt by the Security
 Trustee of the proceeds of insurance relating to such Total Loss; or

 
	
  

 	
  

 
	
 (c)

 	
 if any of the following occurs, on demand by the Agent (unless
 otherwise agreed):

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 any of the events specified in Article IX of the Shipbuilding
 Contract occurs; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the Shipbuilding Contract is amended or varied without the prior
 written consent of the Majority Lenders except for any such amendment or
 variation as is permitted by this Agreement or any other relevant Finance
 Document; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 the Ship has not for any reason been delivered to, and accepted by,
 the Borrower under the Shipbuilding Contract by the last day of the
 Availability Period; or

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 within 40 days (or such longer period as may be agreed by the Agent
 (acting upon the instructions of all the Lenders) following a request from
 the Borrower and subject to the Borrower having submitted promptly a valid
 demand under the Refund Guarantee) of the date on which either the
 Shipbuilding Contract or the Refund Guarantee is cancelled, terminated,
 rescinded or suspended or otherwise ceases to remain in force for any reason.

 
	
  

 	
  

 
	
 8.9

 	
 Amounts payable on
 prepayment. A prepayment shall be made together with
 accrued interest (and any other amount payable under Clause 20 or
 otherwise) in respect of the amount prepaid and, if the prepayment is not
 made on the last day of an Interest Period together with any sums payable
 under Clause 20.1(b) but without premium or penalty.

 
	
  

 	
  

 
	
 8.10

 	
 Application of
 partial prepayment. Each partial prepayment shall be
 applied against the repayment instalments specified in Clause 8.1 in
 inverse order of maturity.

 
	
  

 	
  

 
	
 8.11

 	
 No reborrowing.
 No amount prepaid may be reborrowed. 

 
	
  

 	
  

 
	
 9

 	
 CONDITIONS PRECEDENT

 
	
  

 	
  

 	
  

 
	
 9.1

 	
 Documents, fees and
 no default. Each Lender’s obligation to contribute
 to an Advance is subject to the following conditions precedent:

 

19

	
  

 	
  

 	
  

 
	
 (a)

 	
 that, on or before the service of the first Drawdown Notice, the
 Agent receives the documents described in Part A of Schedule 3 in form and
 substance satisfactory to the Agent and its lawyers;

 
	
  

 	
  

 
	
 (b)

 	
 that, on or before the service of the first Drawdown Notice, the
 Agent receives the up-front fee referred to in Clause 19.1 and all
 accrued commitment fee payable pursuant to Clause 19.1; and

 
	
  

 	
  

 
	
 (c)

 	
 that, on or before the first Drawdown Date, the Agent receives the
 documents described in Part B of Schedule 3 in form and substance
 satisfactory to the Agent and its lawyers;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 that on or before the Drawdown Date in respect of the second Advance
 the Agent receives the documents described in Part C of Schedule 3 (other
 than the Approved Charter, a copy of which shall be delivered to the Agent no
 later than 5 Business Days prior to such Drawdown Date) in form and substance
 satisfactory to the Agent and its lawyers;

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 that, on or before the final Drawdown Date, the Agent receives the
 documents described in Part D of Schedule 3 in form and substance
 satisfactory to the Agent and its lawyers;

 
	
  

 	
  

 
	
 (f)

 	
 that both at the date of each Drawdown Notice and at each Drawdown
 Date:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 no Event of Default or Potential Event of Default has occurred and is
 continuing or would result from the borrowing of the Loan;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the representations and warranties in Clause 10.1 and those of
 the Borrower or any Security Party which are set out in the other Finance
 Documents would be true and not misleading if repeated on each of those dates
 with reference to the circumstances then existing unless, the Agent, acting
 on the instructions of the Majority Lenders, agrees to the contrary;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 none of the circumstances contemplated by Clause 5.5 has
 occurred and is continuing; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 there has been no material adverse change in the financial position,
 operation or circumstances of the Borrower or the Guarantor since the date of
 this Agreement;

 
	
  

 	
  

 	
  

 
	
 (g)

 	
 that, if the ratio set out in Clause 15.1 were applied
 immediately following the making of the Advance, the Borrower would not be
 obliged to provide additional security or prepay part of the Loan under that
 Clause; and

 
	
  

 	
  

 
	
 (h)

 	
 that the Agent has received, and found to be acceptable to it, any
 further opinions, consents, agreements and documents in connection with the
 Finance Documents which the Agent may, with the authorisation of the Majority
 Lenders, request by notice to the Borrower prior to the Drawdown Date.

 
	
  

 	
  

 
	
 9.2

 	
 Waiver of
 conditions precedent. If the Majority Lenders, at
 their discretion, permit an Advance to be borrowed before certain of the
 conditions referred to in Clause 9.1 are satisfied, the Borrower shall
 ensure that those conditions are satisfied within 10 Business days after the
 Drawdown Date (or such longer period as the Agent may, with the authorisation
 of the Majority Lenders, specify).

 
	
  

 	
  

 
	
 10

 	
 REPRESENTATIONS AND WARRANTIES

 
	
  

 	
  

 	
  

 
	
 10.1

 	
 General.
 The Borrower represents and warrants to each Creditor Party as follows.

 

20

	
  

 	
  

 
	
 10.2

 	
 Status.
 The Borrower is duly incorporated and validly existing and in good standing
 under the laws of Bermuda.

 
	
  

 	
  

 
	
 10.3

 	
 Share capital and
 ownership. The Borrower has an authorised share capital
 of $12,000 divided into 12,000 registered shares of $1 each all of which
 shares have been issued fully paid, and the legal title and beneficial
 ownership of all those shares is held, free of any Security Interest or other
 claim, by the Shareholder.

 
	
  

 	
  

 
	
 10.4

 	
 Corporate power.
 The Borrower has the corporate capacity, and has taken all corporate action
 and obtained all consents necessary for it:

 
	
  

 	
  

 
	
 (a)

 	
 to execute the Novation Agreement and the Transfer Agreement, to
 purchase and pay for the Ship under the Shipbuilding Contract and the
 Transfer Agreement and register the Ship in its name under an Approved Flag;

 
	
  

 	
  

 
	
 (b)

 	
 to execute the Finance Documents to which the Borrower is a party;
 and

 
	
  

 	
  

 
	
 (c)

 	
 to borrow under this Agreement and to make all the payments
 contemplated by, and to comply with, those Finance Documents.

 
	
  

 	
  

 
	
 10.5

 	
 Consents in force.
 All the consents referred to in Clause 10.4 remain in force and nothing
 has occurred which makes any of them liable to revocation.

 
	
  

 	
  

 
	
 10.6

 	
 Legal validity;
 effective Security Interests. The Finance
 Documents to which the Borrower is a party, do now or, as the case may be,
 will, upon execution and delivery (and, where applicable, registration as
 provided for in the Finance Documents):

 
	
  

 	
  

 
	
 (a)

 	
 constitute the Borrower’s legal, valid and binding obligations
 enforceable against the Borrower in accordance with their respective terms;
 and

 
	
  

 	
  

 
	
 (b)

 	
 create legal, valid and binding Security Interests enforceable in
 accordance with their respective terms over all the assets to which they, by
 their terms, relate;

 
	
  

 	
  

 
	
  

 	
 subject to any relevant insolvency laws affecting creditors’ rights
 generally.

 
	
  

 	
  

 
	
 10.7

 	
 No third party
 Security Interests. Without limiting the generality
 of Clause 10.6, at the time of the execution and delivery of each
 Finance Document:

 
	
  

 	
  

 
	
 (a)

 	
 the Borrower will have the right to create all the Security Interests
 which that Finance Document purports to create; and

 
	
  

 	
  

 
	
 (b)

 	
 no third party will have any Security Interest or any other interest,
 right or claim over, in or in relation to any asset to which any such
 Security Interest, by its terms, relates.

 
	
  

 	
  

 
	
 10.8

 	
 No conflicts.
 The execution by the Borrower of each Finance Document, and the borrowing by
 the Borrower of the Loan, and its compliance with each Finance Document will
 not involve or lead to a contravention of:

 
	
  

 	
  

 
	
 (a)

 	
 any law or regulation; or

 
	
  

 	
  

 
	
 (b)

 	
 the constitutional documents of the Borrower; or

 
	
  

 	
  

 
	
 (c)

 	
 any contractual or other obligation or restriction which is binding
 on the Borrower or any of its assets.

 

21

	
  

 	
  

 
	
 10.9

 	
 No withholding
 taxes. All payments which the Borrower is liable to
 make under the Finance Documents may be made without deduction or withholding
 for or on account of any tax payable under any law of any Pertinent
 Jurisdiction.

 
	
  

 	
  

 
	
 10.10

 	
 No default.
 No Event of Default or Potential Event of Default has occurred and is
 continuing.

 
	
  

 	
  

 
	
 10.11

 	
 Information.
 All information which has been provided in writing by or on behalf of the
 Borrower or any Security Party to any Creditor Party in connection with any
 Finance Document satisfied the requirements of Clause 11.5; all audited
 and unaudited accounts which have been so provided satisfied the requirements
 of Clause 11.7; and there has been no material adverse change in the
 financial position or state of affairs of the Borrower from that disclosed in
 the latest of those accounts.

 
	
  

 	
  

 
	
 10.12

 	
 No litigation.
 No legal or administrative action involving the Borrower (including action
 relating to any alleged or actual breach of the ISM Code or the ISPS Code)
 has been commenced or taken or, to the Borrower’s knowledge, is likely to be
 commenced or taken which, in either case, would be likely to have a material
 adverse effect on the Borrower’s financial position or profitability.

 
	
  

 	
  

 
	
 10.13

 	
 Validity and
 completeness of Shipbuilding Contract, Transfer Agreement, Novation Agreement
 and Refund Guarantee. Each of the Shipbuilding
 Contract, the Transfer Agreement, the Novation Agreement and the Refund
 Guarantee constitute valid, binding and enforceable obligations of the
 parties thereto in accordance with its terms; and:

 
	
  

 	
  

 
	
 (a)

 	
 the copies of the Shipbuilding Contract, the Transfer Agreement, the
 Novation Agreement, and the Refund Guarantee delivered to the Agent before
 the date of this Agreement are true and complete copies or, in the case of
 the Refund Guarantee, original thereof; and

 
	
  

 	
  

 
	
 (b)

 	
 no amendments or additions to the Shipbuilding Contract, the Transfer
 Agreement, the Novation Agreement or the Refund Guarantee have been agreed
 nor has any party thereto waived any of their respective rights under any of
 them.

 
	
  

 	
  

 
	
 10.14

 	
 No rebates etc.
 Other than pursuant to the Transfer Agreement, there is no agreement or
 understanding to allow or pay any rebate, premium, commission, discount or
 other benefit or payment (howsoever described) to the Borrower, the Builder,
 the Original Buyer or a third party in connection with the purchase by the
 Borrower of the Ship, other than as disclosed to the Lenders in writing on or
 prior to the date of this Agreement.

 
	
  

 	
  

 
	
 10.15

 	
 Compliance with
 certain undertakings. At the date of this Agreement,
 the Borrower is in compliance with Clauses 11.2, 11.3, 11.4, 11.9 and
 11.13.

 
	
  

 	
  

 
	
 10.16

 	
 Taxes paid.
 The Borrower has paid all taxes applicable to, or imposed on or in relation
 to the Borrower, its business or the Ship.

 
	
  

 	
  

 
	
 10.17

 	
 ISM Code and ISPS
 Code compliance. All requirements of the ISM
 Code and the ISPS Code as they relate to the Borrower, the Approved Manager
 and the Ship have been complied with.

 
	
  

 	
  

 
	
 10.18

 	
 No money
 laundering. Without prejudice to the generality of
 Clause 2.3, in relation to the borrowing by the Borrower of the Loan,
 the performance and discharge of their respective obligations and liabilities
 under the Finance Documents, and the transactions and other arrangements
 affected or contemplated by the Finance Documents to which the Borrower is a
 party, the Borrower confirms (i) that it is acting for its own account; (ii)
 that it will use the proceeds of the Loan for its own benefit, under its full
 responsibility and exclusively for the purposes specified in this Agreement;
 and (iii) that the foregoing will not involve or lead to a 

 

22

	
  

 	
  

 	
  

 
	
  

 	
 contravention of any law, official requirement or other regulatory
 measure or procedure implemented to combat “money laundering” (as defined in
 Article 1 of Directive (91/308) EEC) of the Council of the European
 Communities).

 
	
  

 	
  

 
	
 11

 	
 GENERAL UNDERTAKINGS

 
	
  

 	
  

 
	
 11.1

 	
 General.
 The Borrower undertakes with each Creditor Party to comply with the following
 provisions of this Clause 11 at all times during the Security Period
 except as the Agent may, with the authorisation of the Majority Lenders,
 otherwise permit.

 
	
  

 	
  

 
	
 11.2

 	
 Title; negative
 pledge. The Borrower will:

 
	
  

 	
  

 
	
 (a)

 	
 hold the legal title to, and own the entire beneficial interest in
 the Ship, the Insurances and Earnings, free from all Security Interests and
 other interests and rights of every kind, except for those created by the
 Finance Documents and the effect of assignments contained in the Finance
 Documents; and

 
	
  

 	
  

 
	
 (b)

 	
 not create or permit to arise any Security Interest over any other
 asset, present or future. 

 
	
  

 	
  

 
	
 11.3

 	
 No disposal of
 assets. The Borrower will not transfer, lease or
 otherwise dispose of:

 
	
  

 	
  

 
	
 (a)

 	
 all or a substantial part of its assets, whether by one transaction
 or a number of transactions, whether related or not; or

 
	
  

 	
  

 
	
 (b)

 	
 any debt payable to it or any other right (present, future or
 contingent right) to receive a payment, including any right to damages or
 compensation.

 
	
  

 	
  

 
	
 11.4

 	
 No other
 liabilities or obligations to be incurred. The
 Borrower will not incur any liability or obligation except liabilities and
 obligations under the Shipbuilding Contract, the Transfer Agreement, the
 Novation Agreement and the Finance Documents and liabilities or obligations
 reasonably incurred in the ordinary course of operating and chartering the
 Ship.

 
	
  

 	
  

 
	
 11.5

 	
 Information
 provided to be accurate. All financial and other
 information which is provided in writing by or on behalf of the Borrower
 under or in connection with any Finance Document will be true and not
 misleading and will not omit any material fact or consideration.

 
	
  

 	
  

 
	
 11.6

 	
 Provision of
 financial statements. The Borrower will send to the
 Agent:

 
	
  

 	
  

 
	
 (a)

 	
 as soon as possible, but in no event later than 5 months after the
 end of each financial year of the Borrower, the audited consolidated accounts
 of the Borrower (commencing with the financial year ended 31 December 2007);

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 as soon as possible, but in no event later than 90 days after the end
 of each 6-month period ending on 30 June in each financial year of the
 Borrower:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 unaudited consolidated accounts of the Borrower (commencing with the
 accounts for the 6-month period ending on 30 June 2008) certified as to their
 correctness by any officer or director of the Borrower; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 (as from the first financial 6-month period falling after the
 Delivery Date) management accounts in a format approved by the Agent which
 show the results of the operation of the Ship during the preceding financial
 6-month period and which are certified as to their correctness by the chief
 financial officer of the Borrower;

 

23

	
  

 	
  

 
	
 (c)

 	
 as soon as possible, but in no event later than 3 months after the
 end of each financial year of the Borrower (commencing with the financial
 year in which the Delivery Date falls), a budget in a format approved by the
 Agent which shows all anticipated income and expenditure of the Ship during
 the next financial year of the Borrower. 

 

	
  

 	
  

 
	
 11.7

 	
 Form of financial statements. All accounts (audited and unaudited)
 delivered under Clause 11.6 will: 

 
	
  

 	
  

 
	
 (a)

 	
 be prepared in accordance with all applicable laws and GAAP
 consistently applied; 

 
	
  

 	
  

 
	
 (b)

 	
 give a true and fair view of the state of affairs of the Borrower and
 the Guarantor at the date of those accounts and of their profit for the
 period to which those accounts relate; and 

 
	
  

 	
  

 
	
 (c)

 	
 fully disclose or provide for all significant liabilities of the
 Borrower and the Guarantor. 

 

	
  

 	
  

 
	
 11.8

 	
 Creditor notices. The Borrower will send the Agent, at the
 same time as they are despatched, copies of all material communications which
 the Borrower is legally obliged to despatch to all of its creditors or any
 class of them. 

 
	
  

 	
  

 
	
 11.9

 	
 Consents. The Borrower will maintain in force and
 promptly obtain or renew, and will promptly send certified copies to the
 Agent of, all consents required: 

 
	
  

 	
  

 
	
 (a)

 	
 for the Borrower to perform its obligations under any Finance
 Document; 

 
	
  

 	
  

 
	
 (b)

 	
 for the validity or enforceability of any Finance Document; 

 
	
  

 	
  

 
	
 (c)

 	
 for the Borrower to continue to own and operate the Ship;

and the
 Borrower will comply with the terms of all such consents. 

 

	
  

 	
  

 
	
 11.10

 	
 Maintenance of Security Interests. The Borrower will: 

 
	
  

 	
  

 
	
 (a)

 	
 at its own cost, do all that it reasonably can to ensure that any
 Finance Document validly creates the obligations and the Security Interests
 which it purports to create; and 

 
	
  

 	
  

 
	
 (b)

 	
 without limiting the generality of paragraph (a), at its own cost,
 promptly register, file, record or enrol any Finance Document (to which it is
 a party) with any court or authority in all Pertinent Jurisdictions, pay any
 stamp, registration or similar tax in all Pertinent Jurisdictions in respect
 of any Finance Document, give any notice or take any other step which, in the
 opinion of the Majority Lenders, is or has become necessary or desirable for
 any Finance Document to be valid, enforceable or admissible in evidence or to
 ensure or protect the priority of any Security Interest which it creates. 

 

	
  

 	
  

 
	
 11.11

 	
 Notification of litigation. The Borrower will provide the Agent with
 details of any legal or administrative action involving the Borrower, any
 Security Party, the Approved Manager or the Ship, the Earnings or the
 Insurances as soon as such action is instituted or it becomes apparent to the
 Borrower that it is likely to be instituted, unless it is clear that the
 legal or administrative action cannot be considered material in the context
 of any Finance Document. 

 
	
  

 	
  

 
	
 11.12

 	
 No amendment to Shipbuilding Contract,
 Transfer Agreement or Refund Guarantee. The Borrower will not agree to any
 amendment or supplement to, or waive or fail to enforce, the Shipbuilding
 Contract, the Transfer Agreement or the Refund Guarantee or any of their
 respective provisions except as permitted by this Agreement and the other
 Finance Documents.

 

24

	
  

 	
  

 
	
 11.13

 	
 Principal place of business. The Borrower will maintain its place of business,
 and keep its corporate documents and records, at the address stated at the
 commencement of this Agreement; and the Borrower will not establish, or do
 anything as a result of which it would be deemed to have, a place of business
 in any country other than Bermuda. 

 
	
  

 	
  

 
	
 11.14

 	
 Confirmation of no default. The Borrower will, within 2 Business Days
 after service by the Agent of a written request, serve on the Agent a notice
 which is signed by 2 directors of the Borrower and which:

 
	
  

 	
  

 
	
 (a)

 	
 states that no Event of Default or Potential Event of Default has
 occurred; or 

 
	
  

 	
  

 
	
 (b)

 	
 states that no Event of Default or Potential Event of Default has
 occurred, except for a specified event or matter, of which all material
 details are given. 

 
	
  

 	
  

 
	
  

 	
 The Agent may serve requests under this Clause 11.14 from time to
 time but only if asked to do so by a Lender or Lenders having Contributions
 exceeding 10 per cent. of the Loan or (if the Loan has not been made)
 Commitments exceeding 10 per cent of the Total Commitments; and this Clause
 11.14 does not affect the Borrowers’ obligations under Clause 11.15.

 

	
  

 	
  

 
	
 11.15

 	
 Notification of default. The Borrower will notify the Agent as soon
 as the Borrower becomes aware of:

 
	
  

 	
  

 
	
 (a)

 	
 the occurrence of an Event of Default or a Potential Event of
 Default; or 

 
	
  

 	
  

 
	
 (b)

 	
 any matter which indicates that an Event of Default or a Potential
 Event of Default may have occurred;

and will keep the Agent fully up-to-date
 with all developments.

 

	
  

 	
  

 
	
 11.16

 	
 Provision of further information. The Borrower will, as soon as practicable
 after receiving the request, provide the Agent with any additional financial
 or other information relating:

 
	
  

 	
  

 
	
 (a)

 	
 to the Borrower, the Ship, the Earnings or the Insurances; or 

 
	
  

 	
  

 
	
 (b)

 	
 to any other matter relevant to, or to any provision of, a Finance
 Document, 

 
	
  

 	
  

 
	
  

 	
 which may be requested by the Agent, the Security Trustee or any
 Lender at any time.

 

	
  

 	
  

 
	
 11.17

 	
 Provision of copies and translation of
 documents.
 The Borrower will supply the Agent with a sufficient number of copies
 of the documents referred to above to provide 1 copy for each Creditor Party;
 and if the Agent so requires in respect of any of those documents, the
 Borrower will provide a certified English translation prepared by a
 translator approved by the Agent. 

 

	
  

 	
  

 
	
 11.18

 	
 “Know your customer” checks.
 If: 

 
	
  

 	
  

 
	
 (a)

 	
 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; 

 
	
  

 	
  

 
	
 (b)

 	
 any change in the status of the Borrower or any Security Party
 (including, without limitation, a change in the composition of their
 shareholders) after the date of this Agreement; or 

 
	
  

 	
  

 
	
 (c)

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

 

25

	
  

 	
  

 
	
  

 	
 obliges the Agent or any Lender (or, in the case of paragraph (c),
 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, the Borrowers shall promptly upon the request of
 the Agent or the Lender concerned supply, or procure the supply of, such
 documentation and other evidence as is reasonably requested by the Agent (for
 itself or on behalf of any Lender) or the Lender concerned (for itself or, in
 the case of the event described in paragraph (c), on behalf of any
 prospective new Lender) in order for the Agent, the Lender concerned or, in
 the case of the event described in paragraph (c), 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.

 

	
  

 	
  

 
	
 12

 	
 CORPORATE UNDERTAKINGS 

 
	
  

 	
  

 
	
 12.1

 	
 General. The Borrower also undertakes with each
 Creditor Party to comply with the following provisions of this Clause 12 at
 all times during the Security Period except as the Agent may, with the
 authorisation of the Majority Lenders, otherwise permit. 

 
	
  

 	
  

 
	
 12.2

 	
 Maintenance of status. The Borrower will maintain its separate
 corporate existence and remain in good standing under the laws of Bermuda. 

 

	
  

 	
  

 	
  

 
	
 12.3

 	
 Negative undertakings. The Borrower will not:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 carry on any
 business other than the ownership, chartering and operation of the Ship; or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 effect any form of redemption, purchase or return of share capital;
 or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 provide any
 form of credit or financial assistance to:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 a person who is directly or indirectly interested in the Borrower’s
 share or loan capital; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any company in or with which such a person is directly or indirectly
 interested or connected; 

 
	
  

 	
  

 	
  

 
	
  

 	
 or enter into any transaction with or involving such a person or
 company on terms which are, in any respect, less favourable to the Borrower
 than those which it could obtain in a bargain made at arms’ length;

 
	
  

 	
  

 
	
 (d)

 	
 issue, allot or grant any person a right to any shares in its capital
 or repurchase or reduce its issued share capital; 

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 acquire any shares or other securities other than US or UK Treasury
 bills and certificates of deposit issued by major North American or European
 banks, or enter into any transaction in a derivative; 

 
	
  

 	
  

 	
  

 
	
 (f)

 	
 enter into any form of amalgamation, merger or de-merger or any form
 of reconstruction or reorganisation; 

 
	
  

 	
  

 	
  

 
	
 (g)

 	
 incur any Financial Indebtedness other than as contemplated by this
 Agreement; or 

 
	
  

 	
  

 	
  

 
	
 (h)

 	
 agree to purchase any vessel other than the Ship. 

 

	
  

 	
  

 
	
 12.4

 	
 Share Ownership. The Borrower shall ensure and procure that
 all the shares issued by it are owned directly or indirectly by the
 Shareholder. 

 

26

	
  

 	
  

 
	
 13

 	
 INSURANCE 

 
	
  

 	
  

 
	
 13.1

 	
 General. The Borrower also undertakes with each
 Creditor Party to comply with the following provisions of this Clause 13 at
 all times during the Security Period (after the Delivery Date) except as the
 Agent may, with the authorisation of the Majority Lenders, otherwise permit. 

 
	
  

 	
  

 
	
 13.2

 	
 Maintenance of obligatory insurances. The Borrower shall keep the Ship insured
 at the expense of the Borrower against: 

 
	
  

 	
  

 
	
 (a)

 	
 fire and usual marine risks (including hull and machinery and excess
 risks);

 
	
  

 	
  

 
	
 (b)

 	
 war risks (including blocking and trapping);

 
	
  

 	
  

 
	
 (c)

 	
 protection and indemnity risks; and 

 
	
  

 	
  

 
	
 (d)

 	
 any other risks against which the Security Trustee considers, having
 regard to practices and other circumstances prevailing at the relevant time,
 it would in the opinion of the Security Trustee be reasonable for the Borrower
 to insure and which are specified by the Security Trustee by notice to the
 Borrower. 

 

	
  

 	
  

 
	
 13.3

 	
 Terms of obligatory insurances. The Borrower shall effect such insurances:

 
	
  

 	
  

 
	
 (a)

 	
 in Dollars; 

 
	
  

 	
  

 
	
 (b)

 	
 in the case of fire and usual marine risks and war risks, in an
 amount on an agreed value basis at least the greater of (i) 120 per cent. of
 the Loan and (ii) the market value of the Ship; and 

 
	
  

 	
  

 
	
 (c)

 	
 in the case of oil pollution liability risks, for an aggregate amount
 equal to the highest level of cover from time to time available under basic
 protection and indemnity club entry and in the international marine insurance
 market (currently $1,000,000,000); 

 
	
  

 	
  

 
	
 (d)

 	
 in relation to protection and indemnity risks in respect of the
 Ship’s full tonnage; 

 
	
  

 	
  

 
	
 (e)

 	
 on approved terms; and 

 
	
  

 	
  

 
	
 (f)

 	
 through approved brokers and with approved insurance companies and/or
 underwriters or, in the case of war risks and protection and indemnity risks,
 in approved war risks and
 protection and indemnity risks associations. 

 

	
  

 	
  

 
	
 13.4

 	
 Further protections for the Creditor
 Parties. In
 addition to the terms set out in Clause 13.3, the Borrower shall procure that
 the obligatory insurances shall: 

 
	
  

 	
  

 
	
 (a)

 	
 whenever the Security Trustee requires, name (or be amended to name)
 the Security Trustee as additional named assured for its rights and
 interests, warranted no operational interest and with full waiver of rights
 of subrogation against the Security Trustee, but without the Security Trustee
 thereby being liable to pay (but having the right to pay) premiums, calls or
 other assessments in respect of such insurance; 

 
	
  

 	
  

 
	
 (b)

 	
 name the Security Trustee as loss payee with such directions for
 payment as the Security Trustee may specify; 

 
	
  

 	
  

 
	
 (c)

 	
 provide that all payments by or on behalf of the insurers under the
 obligatory insurances to the Security Trustee shall be made without set-off,
 counterclaim or deductions or condition whatsoever; 

 

27

	
  

 	
  

 
	
 (d)

 	
 provide that such obligatory insurances shall be primary without
 right of contribution from other insurances which may be carried by the
 Security Trustee or any other Creditor Party; and 

 
	
  

 	
  

 
	
 (e)

 	
 provide that the Security Trustee may make proof of loss if the
 Borrower fails to do so. 

 

	
  

 	
  

 	
  

 
	
 13.5

 	
 Renewal of obligatory insurances. The Borrower shall: 

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 at least 21
 days before the expiry of any obligatory insurance: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 notify the Security Trustee of the brokers (or other insurers) and
 any protection and indemnity or war risks association through or with whom
 the Borrower proposes to renew that obligatory insurance and of the proposed
 terms of renewal; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 obtain the
 Security Trustee’s approval to the matters referred to in paragraph (i); 

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 at least 14 days before the expiry of any obligatory insurance, renew
 that obligatory insurance in accordance with the Security Trustee’s approval
 pursuant to paragraph (a); and 

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 procure that the approved brokers and/or the war risks and protection
 and indemnity associations with which such a renewal is effected shall promptly
 after the renewal notify the Security Trustee in writing of the terms and
 conditions of the renewal. 

 

	
  

 	
  

 
	
 13.6

 	
 Copies of policies; letters of undertaking. The Borrower shall ensure that all
 approved brokers provide the Security Trustee with pro forma copies of all
 policies relating to the obligatory insurances which they are to effect or
 renew and of a letter or letters or undertaking in a form required by the
 Security Trustee and including undertakings by the approved brokers that: 

 
	
  

 	
  

 
	
 (a)

 	
 they will have endorsed on each policy, immediately upon issue, a
 loss payable clause and a notice of assignment complying with the provisions
 of Clause 13.4; 

 
	
  

 	
  

 
	
 (b)

 	
 they will hold such policies, and the benefit of such insurances, to
 the order of the Security Trustee in accordance with the said loss payable
 clause; 

 
	
  

 	
  

 
	
 (c)

 	
 they will advise the Security Trustee immediately of any material
 change to the terms of the obligatory insurances; 

 
	
  

 	
  

 
	
 (d)

 	
 they will notify the Security Trustee, not less than 14 days before
 the expiry of the obligatory insurances, in the event of their not having
 received notice of renewal instructions from the Borrower or its agents and,
 in the event of their receiving instructions to renew, they will promptly
 notify the Security Trustee of the terms of the instructions; and 

 
	
  

 	
  

 
	
 (e)

 	
 they will not set off against any sum recoverable in respect of a
 claim relating to the Ship under such obligatory insurances any premiums or
 other amounts due to them or any other person whether in respect of the Ship
 or otherwise, they waive any lien on the policies, or any sums received under
 them, which they might have in respect of such premiums or other amounts, and
 they will not cancel such obligatory insurances by reason of non-payment of
 such premiums or other amounts, and will arrange for a separate policy to be
 issued in respect of the Ship forthwith upon being so requested by the
 Security Trustee. 

 

	
  

 	
  

 
	
 13.7

 	
 Copies of certificates of entry. The Borrower shall ensure that any
 protection and indemnity and/or war risks associations in which the Ship is
 entered provides the Security Trustee with: 

 
	
  

 	
  

 
	
 (a)

 	
 a certified copy of the certificate of entry for the Ship; 

 

28

	
  

 	
  

 
	
 (b)

 	
 a letter or letters of undertaking in such form as may be required by
 the Security Trustee; and 

 
	
  

 	
  

 
	
 (c)

 	
 a certified copy of each certificate of financial responsibility for
 pollution by oil or other Environmentally Sensitive Material issued by the
 relevant certifying authority in relation to the Ship. 

 

	
  

 	
  

 
	
 13.8

 	
 Deposit of original policies. The Borrower shall ensure that all
 policies relating to obligatory insurances are deposited with the approved
 brokers through which the insurances are effected or renewed. 

 
	
  

 	
  

 
	
 13.9

 	
 Payment of premiums. The Borrower shall punctually pay all premiums
 or other sums payable in respect of the obligatory insurances and produce all
 relevant receipts when so required by the Security Trustee. 

 
	
  

 	
  

 
	
 13.10

 	
 Guarantees. The Borrower shall ensure that any
 guarantees required by a protection and indemnity or war risks association
 are promptly issued and remain in full force and effect. 

 
	
  

 	
  

 
	
 13.11

 	
 Compliance with terms of insurances. The Borrower shall neither do nor omit to
 do (nor permit to be done or not to be done) any act or thing which would or
 might render any obligatory insurance invalid, void, voidable or
 unenforceable or render any sum payable under an obligatory insurance
 repayable in whole or in part; and, in particular: 

 
	
  

 	
  

 
	
 (a)

 	
 the Borrower shall take all necessary action and comply with all
 requirements which may from time to time be applicable to the obligatory
 insurances, and (without limiting the obligation contained in Clause 13.7(c))
 ensure that the obligatory insurances are not made subject to any exclusions
 or qualifications to which the Security Trustee has not given its prior
 approval; 

 
	
  

 	
  

 
	
 (b)

 	
 the Borrower shall not make any changes relating to the
 classification or classification society or manager or operator of the Ship
 approved by the underwriters of the obligatory insurances; 

 
	
  

 	
  

 
	
 (c)

 	
 the Borrower shall make (and promptly supply copies to the Agent of)
 all quarterly or other voyage declarations which may be required by the
 protection and indemnity risks association in which the Ship is entered to
 maintain cover for trading to the United States of America and Exclusive
 Economic Zone (as defined in the United States Oil Pollution Act 1990 or any
 other applicable legislation); and 

 
	
  

 	
  

 
	
 (d)

 	
 the Borrower shall not employ the Ship, nor allow it to be employed,
 otherwise than in conformity with the terms and conditions of the obligatory
 insurances, without first obtaining the consent of the insurers and complying
 with any requirements (as to extra premium or otherwise) which the insurers
 specify. 

 

	
  

 	
  

 
	
 13.12

 	
 Alteration to terms of insurances. The Borrower shall neither make or
 agree to any alteration to the terms of any obligatory insurance nor waive
 any right relating to any obligatory insurance. 

 
	
  

 	
  

 
	
 13.13

 	
 Settlement of claims. The Borrower shall not settle, compromise
 or abandon any claim under any obligatory insurance for Total Loss or for a
 Major Casualty, and shall do all things necessary and provide all documents,
 evidence and information to enable the Security Trustee to collect or recover
 any moneys which at any time become payable in respect of the obligatory
 insurances. 

 
	
  

 	
  

 
	
 13.14

 	
 Provision of information. In addition, the Borrower shall promptly
 provide the Security Trustee (or any persons which it may designate) with any
 information which the Security Trustee (or any such designated person)
 requests for the purpose of: 

 

29

	
  

 	
  

 
	
 (a)

 	
 obtaining or preparing any report from an independent marine
 insurance broker as to the adequacy of the obligatory insurances effected or
 proposed to be effected; and/or 

 
	
  

 	
  

 
	
 (b)

 	
 effecting, maintaining or renewing any such insurances as are
 referred to in Clause 13.15 or dealing with or considering any matters
 relating to any such insurances; 

 
	
  

 	
  

 
	
  

 	
 and the Borrower shall, forthwith upon demand, indemnify the Security
 Trustee in respect of all fees and other expenses incurred by or for the
 account of the Security Trustee in connection with any such report as is
 referred to in paragraph (a).

 

	
  

 	
  

 
	
 13.15

 	
 Mortgagee’s interest and additional perils
 insurances.
 The Security Trustee shall be entitled from time to time to effect,
 maintain and renew a mortgagee’s interest additional perils insurance and a
 mortgagee’s interest marine insurance in such amounts, on such terms, through
 such insurers and generally in such manner as the Security Trustee may from
 time to time consider appropriate and the Borrower shall upon demand fully
 indemnify the Security Trustee in respect of all premiums and other expenses
 which are incurred in connection with or with a view to effecting,
 maintaining or renewing any such insurance or dealing with, or considering,
 any matter arising out of any such insurance. 

 
	
  

 	
  

 
	
 14

 	
 SHIP COVENANTS 

 
	
  

 	
  

 
	
 14.1

 	
 General. The Borrower also undertakes with each
 Creditor Party to comply with the following provisions of this Clause 14 at
 all times during the Security Period (after the Ship has been delivered to it
 under the Shipbuilding Contract) except as the Agent, with the authorisation
 of the Majority Lenders, may otherwise permit. 

 
	
  

 	
  

 
	
 14.2

 	
 Ship’s name and registration. The Borrower shall keep the Ship registered
 in its name under the applicable Approved Flag; shall not do or allow to be
 done anything as a result of which such registration might be cancelled or
 imperilled; and shall not change the name or port of registry of the Ship. 

 
	
  

 	
  

 
	
 14.3

 	
 Repair and classification. The Borrower shall keep the Ship in a good
 and safe condition and state of repair: 

 
	
  

 	
  

 
	
 (a)

 	
 consistent with first-class ship ownership and management practice; 

 
	
  

 	
  

 
	
 (b)

 	
 so as to maintain the Ship’s class (namely +A1, (E), Liquified gas
 carrier, ship type 2G (Membrane tank, Maximum pressure 25 KpaG and minimum
 temperature -163°C), SH, SH-DLA, SHCM, RES, +AMS, +ACCU, SFA (40), NIBS,
 +APS, +ES, PORT, POT, CRC, DFD and UWILD) with American Bureau of Shipping
 free of all overdue recommendations and conditions of such Classification
 Society at American Bureau of Shipping free of overdue recommendations and
 conditions; and 

 
	
  

 	
  

 
	
 (c)

 	
 so as to comply with all laws and regulations applicable to vessels
 registered at ports in the applicable Approved Flag State or to vessels
 trading to any jurisdiction to which the Ship may trade from time to time,
 including but not limited to the ISM Code and the ISPS Code. 

 

	
  

 	
  

 
	
 14.4

 	
 Classification society undertaking. The Borrower shall instruct the
 classification society referred to in Clause 14.3 (and procure that the
 classification society undertakes with the Security Trustee): 

 

30

	
  

 	
  

 	
  

 
	
 (a)

 	
 to send to the Security Trustee, following receipt of a written
 request from the Security Trustee, certified true copies of all original
 class records held by the classification society in relation to the Ship; 

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 to allow the Security Trustee (or its agents), at any time and from
 time to time, to inspect the original class and related records of the
 Borrower and the Ship at the offices of the classification society and to
 take copies of them; 

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 to notify the Security Trustee immediately in writing if the
 classification society: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 receives notification from the Borrower or any person that the Ship’s
 classification society is to be changed; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 becomes aware of any facts or matters which may result in or have
 resulted in a change, suspension, discontinuance, withdrawal or expiry of the
 Ship’s class under the rules or terms and conditions of the Borrower’s or the
 Ship’s membership of the classification society; 

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 following receipt of a written request from the Security Trustee: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 to confirm that the Borrower is not in default of any of its
 contractual obligations or liabilities to the classification society and,
 without limiting the foregoing, that it has paid in full all fees or other
 charges due and payable to the classification society; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 if the Borrower is in default of any of its contractual obligations
 or liabilities to the classification society, to specify to the Security
 Trustee in reasonable detail the facts and circumstances of such default, the
 consequences of such default, and any remedy period agreed or allowed by the
 classification society. 

 

	
  

 	
  

 
	
 14.5

 	
 Modification. The Borrower shall not make any
 modification or repairs to, or replacement of, the Ship or equipment
 installed on it which would or might materially alter the structure, type or
 performance characteristics of the Ship which would materially reduce its
 value. 

 
	
  

 	
  

 
	
 14.6

 	
 Removal of parts. The Borrower shall not remove any material
 part of the Ship, or any item of equipment installed on, the Ship unless the
 part or item so removed is forthwith replaced by a suitable part or item
 which is in the same condition as or better condition than the part or item
 removed, is free from any Security Interest or any right in favour of any
 person other than the Security Trustee and becomes on installation on the
 Ship the property of the Borrower and subject to the security constituted by
 the Mortgage Provided that the
 Borrower may install equipment owned by a third party if the equipment can be
 removed without any risk of damage to the Ship. 

 
	
  

 	
  

 
	
 14.7

 	
 Surveys. The Borrower shall submit the Ship
 regularly to all periodical or other surveys which may be required for
 classification purposes and, if so required by the Security Trustee provide
 the Security Trustee, with copies of all survey reports. 

 
	
  

 	
  

 
	
 14.8

 	
 Inspection. The Borrower shall permit the Security
 Trustee (by surveyors or other persons appointed by it for that purpose) to
 board the Ship at all reasonable times (without interfering with the Ship’s
 operations) to inspect its condition or to satisfy themselves about proposed
 or executed repairs and shall afford all proper facilities for such
 inspections. 

 
	
  

 	
  

 
	
 14.9

 	
 Prevention of and release from arrest. The Borrower shall promptly discharge: 

 

31

	
  

 	
  

 
	
 (a)

 	
 all liabilities which give or may give rise to maritime or possessory
 liens on or claims enforceable against the Ship, the Earnings or the
 Insurances; 

 
	
  

 	
  

 
	
 (b)

 	
 all taxes, dues and other amounts charged in respect of the Ship, the
 Earnings or the Insurances; and 

 
	
  

 	
  

 
	
 (c)

 	
 all other outgoings whatsoever in respect of the Ship, the Earnings
 or the Insurances; 

 
	
  

 	
  

 
	
  

 	
 and, forthwith upon receiving notice of the arrest of the Ship, or of
 its detention in exercise or purported exercise of any lien or claim, the
 Borrower shall procure its release by providing bail or otherwise as the
 circumstances may require.

 

	
  

 	
  

 
	
 14.10

 	
 Compliance with laws etc. The Borrower shall: 

 
	
  

 	
  

 
	
 (a)

 	
 comply, or procure compliance with the ISM Code, the ISPS Code, all
 Environmental Laws and all other laws or regulations relating to the Ship,
 its ownership, operation and management or to the business of the Borrower; 

 
	
  

 	
  

 
	
 (b)

 	
 not employ the Ship nor allow its employment in any manner contrary
 to any law or regulation in any relevant jurisdiction including but not
 limited to the ISM Code and the ISPS Code; and 

 
	
  

 	
  

 
	
 (c)

 	
 in the event of hostilities in any part of the world (whether war is
 declared or not), not cause or permit it to enter or trade to any zone which
 is declared a war zone by any government or by the Ship’s war risks insurers
 unless the prior written consent of the Security Trustee has been given and
 the Borrower has (at its expense) effected any special, additional or
 modified insurance cover which the Security Trustee may require. 

 

	
  

 	
  

 
	
 14.11

 	
 Provision of information. The Borrower shall promptly provide the
 Security Trustee with any information which, in the opinion of the Security
 Trustee, it reasonably requests regarding: 

 
	
  

 	
  

 
	
 (a)

 	
 the Ship, its employment, position and engagements; 

 
	
  

 	
  

 
	
 (b)

 	
 the Earnings and payments and amounts due to the Ship’s master and
 crew; 

 
	
  

 	
  

 
	
 (c)

 	
 any expenses incurred, or likely to be incurred, in connection with
 the operation, maintenance or repair of the Ship and any payments made in
 respect of the Ship; 

 
	
  

 	
  

 
	
 (d)

 	
 any towages
 and salvages; 

 
	
  

 	
  

 
	
 (e)

 	
 the Borrower’s, the
 Approved Manager’s or the Ship’s compliance with the ISM Code and the ISPS
 Code, 

 
	
  

 	
  

 
	
  

 	
 and, upon the Security Trustee’s request, provide copies of any
 current charter relating to the Ship and of any current charter guarantee (if
 available), and copies of the Borrower’s or the Approved Manager’s Document of
 Compliance.

 

	
  

 	
  

 
	
 14.12

 	
 Notification of certain events. The Borrower shall promptly notify the
 Security Trustee by fax, confirmed forthwith by letter, of:

 
	
  

 	
  

 
	
 (a)

 	
 any casualty which is or is likely to be or to become a Major
 Casualty; 

 
	
  

 	
  

 
	
 (b)

 	
 any occurrence as a result of which the Ship has become or is, by the
 passing of time or otherwise, likely to become a Total Loss; 

 

32

	
  

 	
  

 
	
 (c)

 	
 any requirement or recommendation made by any insurer or
 classification society or by any competent authority which is not promptly
 complied with; 

 
	
  

 	
  

 
	
 (d)

 	
 any arrest or detention of the Ship, any exercise or purported
 exercise of any lien on the Ship or its Earnings or any requisition of the
 Ship for hire; 

 
	
  

 	
  

 
	
 (e)

 	
 any intended dry docking of the Ship; 

 
	
  

 	
  

 
	
 (f)

 	
 any Environmental Claim made against the Borrower or in connection
 with the Ship, or any Environmental Incident; 

 
	
  

 	
  

 
	
 (g)

 	
 any claim for breach of the ISM Code or the ISPS Code being made
 against the Borrower, the Approved Manager or otherwise in connection with
 the Ship; or 

 
	
  

 	
  

 
	
 (h)

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

 
	
  

 	
  

 
	
  

 	
 and the Borrower shall keep the Security Trustee advised in writing
 on a regular basis and in such detail as the Security Trustee shall require
 of the Borrower’s, the Approved Manager’s or any other person’s response to
 any of those events or matters.

 

	
  

 	
  

 
	
 14.13

 	
 Restrictions on chartering, appointment of
 managers etc.
 The Borrower shall not:

 
	
  

 	
  

 
	
 (a)

 	
 let the Ship on demise charter for any period; 

 
	
  

 	
  

 
	
 (b)

 	
 save and except for the Approved Charter, enter into any time or
 consecutive voyage charter in respect of the Ship for a term which exceeds,
 or which by virtue of any optional extensions may exceed, 13 months; 

 
	
  

 	
  

 
	
 (c)

 	
 enter into any charter in relation to the Ship under which more than
 2 months’ hire (or the equivalent) is payable in advance; 

 
	
  

 	
  

 
	
 (d)

 	
 charter the Ship otherwise than on bona fide arm’s length terms at
 the time when the Ship is fixed; 

 
	
  

 	
  

 
	
 (e)

 	
 appoint a manager of the Ship other than the Approved Manager or
 agree to any material alteration to the terms of the Approved Manager’s
 appointment; 

 
	
  

 	
  

 
	
 (f)

 	
 de-activate or lay up the Ship; or 

 
	
  

 	
  

 
	
 (g)

 	
 put the Ship into the possession of any person for the purpose of
 work being done upon it in an amount exceeding or likely to exceed $1,000,000
 (or the equivalent in any other currency) unless either (i) that person has
 first given to the Security Trustee and in terms satisfactory to it a written
 undertaking not to exercise any lien on the Ship or its Earnings for the cost
 of such work or for any other reason or (ii) the Borrower has established to
 the reasonable satisfaction of the Security Trustee that it has sufficient
 reserves to pay for the cost of such work. 

 

	
  

 	
  

 
	
 14.14

 	
 Notice of Mortgage. The Borrower shall keep the Mortgage
 registered against the Ship as a valid first priority mortgage, carry on
 board the Ship a certified copy of the Mortgage and place and maintain in a
 conspicuous place in the navigation room and the Master’s cabin of the Ship a
 framed printed notice stating that the Ship is mortgaged by the Borrower to
 the Security Trustee. 

 
	
  

 	
  

 
	
 14.15

 	
 Sharing of Earnings. The Borrower shall not enter into any
 agreement or arrangement for the sharing of any Earnings without prior
 consultations with the Agent. 

 

33

	
  

 	
  

 
	
 14.16

 	
 ISPS Code.
 The Borrower shall comply with the ISPS Code and in particular,
 without limitation, shall: 

 
	
  

 	
  

 
	
 (a)

 	
 procure that the Ship owned by it and the company responsible for
 that Ship’s compliance with the ISPS Code comply with the ISPS Code; and 

 
	
  

 	
  

 
	
 (b)

 	
 maintain for
 the Ship an ISSC; and 

 
	
  

 	
  

 
	
 (c)

 	
 notify the Agent immediately in writing of any actual or threatened
 withdrawal, suspension, cancellation or modification of the ISSC. 

 

	
  

 	
  

 
	
 15

 	
 SECURITY COVER 

 
	
  

 	
  

 
	
 15.1

 	
 Minimum required security cover. Clause 15.2 applies if (after the Ship has
 been delivered to it under the Shipbuilding Contract) the Agent notifies the
 Borrower that:

 
	
  

 	
  

 
	
 (a)

 	
 the market
 value (determined as provided in Clause 15.3) of the Ship; plus 

 
	
  

 	
  

 
	
 (b)

 	
 the net
 realisable value of any additional security previously provided under this
 Clause 15; 

 
	
  

 	
  

 
	
  

 	
 is below 110 per cent. of the Loan, any interest which has accrued on
 the Loan at the time the Agent applies the test in this Clause 15.1 and any
 amount which would be payable under Clause 20.1(b) if, at the time the Agent
 applies the test in this Clause 15.1, the Borrower was required to prepay the
 Loan on that date.

 

	
  

 	
  

 
	
 15.2

 	
 Provision of additional security; prepayment. If the Agent serves a notice on the
 Borrower under Clause 15.1, the Borrower shall, within 1 month after the date
 on which the Agent’s notice is served, either:

 
	
  

 	
  

 
	
 (a)

 	
 provide, or
 ensure that a third party provides, additional security which, in the
 reasonable opinion of the Majority Lenders, has a net realisable value at
 least equal to the shortfall and is documented in such terms as the Agent
 may, with the authorisation of the Majority Lenders, approve or require; or 

 
	
  

 	
  

 
	
 (b)

 	
 prepay such
 part (at least) of the Loan as will eliminate the shortfall. 

 

	
  

 	
  

 
	
 15.3

 	
 Valuation of Ship. The market value of the Ship at any date
 is that shown by a valuation prepared:

 
	
  

 	
  

 
	
 (a)

 	
 as at a date not more than 14 days previously; 

 
	
  

 	
  

 
	
 (b)

 	
 by an independent sale and purchase shipbroker speciliasing in the
 LNG sector from the list of shipbrokers referred to in Schedule 5; 

 
	
  

 	
  

 
	
 (c)

 	
 with or without physical inspection of the Ship (as the Agent may
 require); 

 
	
  

 	
  

 
	
 (d)

 	
 on the basis of a sale for prompt delivery for cash on normal arm’s
 length commercial terms as between a willing seller and a willing buyer, free
 of any existing charter or other contract of employment; 

 
	
  

 	
  

 
	
 (e)

 	
 after deducting the estimated amount of the usual and reasonable
 expenses which would be incurred in connection with the sale. 

 

34

	
  

 	
  

 
	
 15.4

 	
 Value of additional vessel security. The net realisable value of any additional
 security which is provided under Clause 15.2 and which consists of a Security
 Interest over a vessel shall be that shown by a valuation complying with the
 requirements of Clause 15.3. 

 
	
  

 	
  

 
	
 15.5

 	
 Valuations binding. Any valuation under Clause 15.2, 15.3 or
 15.4 shall be binding and conclusive as regards the Borrower, as shall be any
 valuation which the Majority Lenders make of any additional security which
 does not consist of or include a Security Interest. 

 
	
  

 	
  

 
	
 15.6

 	
 Provision of information. The Borrower shall promptly provide the
 Agent and any shipbroker or expert acting under Clause 15.3 or 15.4 with any
 information which the Agent or the shipbroker or expert may request for the
 purposes of the valuation; and, if the Borrower fails to provide the
 information by the date specified in the request, the valuation may be made
 on any basis and assumptions which the shipbroker or the Majority Lenders (or
 the expert appointed by them) consider prudent. 

 
	
  

 	
  

 
	
 15.7

 	
 Payment of valuation expenses. Without prejudice to the generality of the
 Borrower’s obligations under Clauses 19.2, 19.3 and 20.3, the Borrower shall,
 on demand, pay the Agent the amount of the fees and expenses of any
 shipbroker or expert instructed by the Agent under this Clause and all legal
 and other expenses incurred by any Creditor Party in connection with any
 matter arising out of this Clause. Provided that as long as no Event of
 Default shall have occurred, the Borrower shall not be obliged to pay any
 such fees and expenses in respect of more than two valuations of the Ship in
 any calendar year. 

 
	
  

 	
  

 
	
 15.8

 	
 Application of prepayment. Clause 8 shall apply in relation to any
 prepayment pursuant to Clause 15.2(b).

 

	
  

 	
  

 
	
 16

 	
 PAYMENTS AND CALCULATIONS 

 
	
  

 	
  

 
	
 16.1

 	
 Currency and method of payments. All payments to be made by the Lenders or
 by the Borrower under a Finance Document shall be made to the Agent or to the
 Security Trustee, in the case of an amount payable to it:

 
	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 
	
 (b)

 	
 in same day Dollar funds settled through the New York Clearing House
 Interbank Payments System (or in such other Dollar funds and/or settled in
 such other manner as the Agent shall specify as being customary at the time
 for the settlement of international transactions of the type contemplated by
 this Agreement); 

 
	
  

 	
  

 
	
 (c)

 	
 in the case of an amount payable by a Lender to the Agent or by the
 Borrower to the Agent or any Lender, to the account of the Agent at Nordea
 Bank Finland Plc, New York Branch (SWIFT:
 NDEAUS3N) (Account No 7443423001), or to such other account with such
 other bank as the Agent may from time to time notify to the Borrower and the
 other Creditor Parties; and 

 
	
  

 	
  

 
	
 (d)

 	
 in the case of an amount payable to the Security Trustee, to such
 account as it may from time to time notify to the Borrower and the other
 Creditor Parties. 

 

	
  

 	
  

 
	
 16.2

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

 
	
  

 	
  

 
	
 (a)

 	
 the due date shall be extended to the next succeeding Business Day;
 or 

 

35

	
  

 	
  

 
	
 (b)

 	
 if the next succeeding Business Day falls in the next calendar month,
 the due date shall be brought forward to the immediately preceding Business
 Day; 

 
	
  

 	
  

 
	
 and interest shall be payable during any extension under paragraph
 (a) at the rate payable on the original due date.

 

	
  

 	
  

 
	
 16.3

 	
 Basis for calculation of periodic payments. All interest and commitment fee and any
 other payments under any Finance Document which are of an annual or periodic
 nature shall accrue from day to day and shall be calculated on the basis of
 the actual number of days elapsed and a 360 day year. 

 
	
  

 	
  

 
	
 16.4

 	
 Distribution of payments to Creditor
 Parties.
 Subject to Clauses 16.5, 16.6 and 16.7: 

 
	
  

 	
  

 
	
 (a)

 	
 any amount received by the Agent under a Finance Document for
 distribution or remittance to a Lender or the Security Trustee shall be made
 available by the Agent to that Lender or, as the case may be, the Security
 Trustee by payment, with funds having the same value as the funds received,
 to such account as the Lender or the Security Trustee may have notified to
 the Agent not less than 5 Business Days previously; and 

 
	
  

 	
  

 
	
 (b)

 	
 amounts to be applied in satisfying amounts of a particular category
 which are due to the Lenders generally shall be distributed by the Agent to
 each Lender pro rata to the amount in that category which is due to it. 

 

	
  

 	
  

 
	
 16.5

 	
 Permitted deductions by Agent. Notwithstanding any other provision of
 this Agreement or any other Finance Document, the Agent may, before making an
 amount available to a Lender, deduct and withhold from that amount any sum
 which is then due and payable to the Agent from that Lender under any Finance
 Document or any sum which the Agent is then entitled under any Finance
 Document to require that Lender to pay on demand. 

 
	
  

 	
  

 
	
 16.6

 	
 Agent only obliged to pay when monies received. Notwithstanding any other provision of
 this Agreement or any other Finance Document, the Agent shall not be obliged
 to make available to the Borrower or any Lender any sum which the Agent is
 expecting to receive for remittance or distribution to the Borrower or that
 Lender until the Agent has satisfied itself that it has received that sum.

 
	
  

 	
  

 
	
 16.7

 	
 Refund to Agent of monies not received. If and to the extent that the Agent makes
 available a sum to the Borrower or a Lender, without first having received
 that sum, the Borrower or (as the case may be) the Lender concerned shall, on
 demand: 

 
	
  

 	
  

 
	
 (a)

 	
 refund the sum in full to the Agent; and 

 
	
  

 	
  

 
	
 (b)

 	
 pay to the Agent the amount (as certified by the Agent) which will
 indemnify the Agent against any funding or other loss, liability or expense
 incurred by the Agent as a result of making the sum available before
 receiving it. 

 

	
  

 	
  

 
	
 16.8

 	
 Agent may assume receipt. Clause 16.7 shall not affect any claim
 which the Agent has under the law of restitution, and applies irrespective of
 whether the Agent had any form of notice that it had not received the sum
 which it made available. 

 
	
  

 	
  

 
	
 16.9

 	
 Creditor Party accounts. Each Creditor Party shall maintain
 accounts showing the amounts owing to it by the Borrower and each Security Party
 under the Finance Documents and all payments in respect of those amounts made
 by the Borrower and any Security Party. 

 

36

	
  

 	
  

 
	
 16.10

 	
 Agent’s memorandum account. The Agent shall maintain a memorandum
 account showing the amounts advanced by the Lenders and all other sums owing
 to the Agent, the Security Trustee and each Lender from the Borrower and each
 Security Party under the Finance Documents and all payments in respect of
 those amounts made by the Borrower and any Security Party. 

 
	
  

 	
  

 
	
 16.11

 	
 Accounts prima facie evidence. If any accounts maintained under Clauses
 16.9 and 16.10 show an amount to be owing by the Borrower or a Security Party
 to a Creditor Party, those accounts shall be prima facie evidence that that
 amount is owing to that Creditor Party. 

 
	
  

 	
  

 
	
 17

 	
 APPLICATION OF RECEIPTS 

 

	
  

 	
  

 
	
 17.1

 	
 Normal order of application. Except as any Finance Document may
 otherwise provide, any sums which are received or recovered by any Creditor
 Party under or by virtue of any Finance Document shall be applied:

 
	
  

 	
  

 
	
 (a)

 	
 FIRST: in or towards payment pro rata of any
 unpaid fees, costs and expenses of the Agent and the Security Trustee under
 the Finance Documents; 

 
	
  

 	
  

 
	
 (b)

 	
 SECONDLY: in or towards payment pro rata of any
 accrued interest or commission due but unpaid under this Agreement; 

 
	
  

 	
  

 
	
 (c)

 	
 THIRDLY: in or towards
 payment pro rata of any principal due but unpaid under this Agreement; 

 
	
  

 	
  

 
	
 (d)

 	
 FOURTHLY: in or towards
 payment pro rata of any other amounts due but unpaid under any Finance
 Document; 

 
	
  

 	
  

 
	
 (e)

 	
 FIFTHLY: in retention of an
 amount equal to any amount not then due and payable under any Finance
 Document but which the Agent, by notice to the Borrower, the Security Parties
 and the other Creditor Parties, states in its opinion will or may become due
 and payable in the future and, upon those amounts becoming due and payable,
 in or towards satisfaction of them in accordance with the provisions of
 Clause 17.1(a), 17.1(b), 17.1(c) and 17.1(d); and 

 
	
  

 	
  

 
	
 (f)

 	
 SIXTHLY: any surplus shall be
 paid to the Borrower or to any other person appearing to be entitled to it. 

 

	
  

 	
  

 
	
 17.2

 	
 Variation of order of application. The Agent may, with the authorisation of
 the Majority Lenders, by notice to the Borrower, the Security Parties and the
 other Creditor Parties provide for a different manner of application from
 that set out in Clause 17.1
 either as regards a specified sum or sums or as regards sums in a specified
 category or categories.

 
	
  

 	
  

 
	
 17.3

 	
 Notice of variation of order of
 application.
 The Agent may give notices under Clause 17.2 from time to time; and
 such a notice may be stated to apply not only to sums which may be received
 or recovered in the future, but also to any sum which has been received or
 recovered on or after the third Business Day before the date on which the notice
 is served. 

 
	
  

 	
  

 
	
 17.4

 	
 Appropriation rights overridden. This Clause 17 and any notice which the
 Agent gives under Clause 17.2 shall override any right of appropriation
 possessed, and any appropriation made, by the Borrower or any Security Party.

 
	
  

 	
  

 
	
 18

 	
 EVENTS OF DEFAULT 

 
	
  

 	
  

 
	
 18.1

 	
 Events of Default. An Event of Default occurs if: 

 

37

	
  

 	
  

 	
  

 
	
 (a)

 	
 the Borrower or any Security Party fails to pay when due or (if so
 payable) on demand any sum payable under a Finance Document or under any
 document relating to a Finance Document; or 

 
	
  

 	
  

 
	
 (b)

 	
 any breach occurs of Clause 9.2, 11.2, 11.3, 11.10, 11.13, 12.2,
 12.3, 12.4 or 15.1; or 

 
	
  

 	
  

 
	
 (c)

 	
 any breach by the Borrower or any Security Party occurs of any
 provision of a Finance Document (other than a breach covered by paragraphs
 (a) or (b)) which, in the opinion of the Majority Lenders, is capable of
 remedy, and such default continues unremedied 10 days after written notice
 from the Agent requesting action to remedy the same; or 

 
	
  

 	
  

 
	
 (d)

 	
 (subject to any applicable grace period specified in the Finance
 Document) any breach by the Borrower or any Security Party occurs of any
 provision of a Finance Document (other than a breach falling within
 paragraphs (a), (b) or (c)); or 

 
	
  

 	
  

 
	
 (e)

 	
 any representation, warranty or statement made or repeated by, or by
 an officer of, the Borrower or a Security Party in a Finance Document or in a
 Drawdown Notice or any other notice or document relating to a Finance
 Document is untrue or misleading when it is made or repeated; or 

 
	
  

 	
  

 
	
 (f)

 	
 any of the following occurs in relation to any Financial Indebtedness
 of a Relevant Person (which, in the case of the Guarantor, exceeds $5,000,000
 (or the equivalent in any other currency)): 

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 any
 Financial Indebtedness of a Relevant Person is not paid when due or, if so
 payable, on demand; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any Financial Indebtedness of a Relevant Person becomes due and
 payable or capable of being declared due and payable prior to its stated
 maturity date as a consequence of any event of default; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 a lease, hire purchase agreement or charter creating any Financial
 Indebtedness of a Relevant Person is terminated by the lessor or owner or
 becomes capable of being terminated as a consequence of any termination
 event; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 any overdraft, loan, note issuance, acceptance credit, letter of
 credit, guarantee, foreign exchange or other facility, or any swap or other
 derivative contract or transaction, relating to any Financial Indebtedness of
 a Relevant Person ceases to be available or becomes capable of being
 terminated as a result of any event of default, or cash cover is required, or
 becomes capable of being required, in respect of such a facility as a result
 of any event of default; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 any Security
 Interest securing any Financial Indebtedness of a Relevant Person becomes
 enforceable; or 

 
	
  

 	
  

 	
  

 
	
 (g)

 	
 any of the
 following occurs in relation to a Relevant Person: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 a Relevant
 Person becomes, in the opinion of the Majority Lenders, unable to pay its
 debts as they fall due; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any assets
 of a Relevant Person are subject to any form of execution, attachment,
 arrest, sequestration or distress in respect of a sum of, or sums
 aggregating, $100,000 (or $5,000,000 in the case of the Guarantor) or more or
 the equivalent in another currency; or 

 

38

	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 any administrative or other receiver is appointed over any asset of a
 Relevant Person; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 an administrator is appointed (whether by the court or otherwise) in
 respect of a Relevant Person; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 any formal declaration of bankruptcy or any formal statement to the
 effect that a Relevant Person is insolvent or likely to become insolvent is
 made by a Relevant Person or by the directors of a Relevant Person or, in any
 proceedings, by a lawyer acting for a Relevant Person; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 a provisional liquidator is appointed in respect of a Relevant
 Person, a winding up order is made in relation to a Relevant Person or a
 winding up resolution is passed by a Relevant Person; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 a resolution is passed, an administration notice is given or filed,
 an application or petition to a court is made or presented or any other step
 is taken by (aa) a Relevant Person, (bb) the members or directors of a
 Relevant Person, (cc) a holder of Security Interests which together relate to
 all or substantially all of the assets of a Relevant Person, or (dd) a
 government minister or public or regulatory authority of a Pertinent
 Jurisdiction for or with a view to the winding up of that or another Relevant
 Person or the appointment of a provisional liquidator or administrator in
 respect of that or another Relevant Person, or that or another Relevant
 Person ceasing or suspending business operations or payments to creditors,
 save that this paragraph does not apply to a fully solvent winding up of a
 Relevant Person other than the Borrower or the Guarantor which is, or is to
 be, effected for the purposes of an amalgamation or reconstruction previously
 approved by the Majority Lenders and effected not later than 3 months after
 the commencement of the winding up; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (viii)

 	
 an administration notice is given or filed, an application or
 petition to a court is made or presented or any other step is taken by a
 creditor of a Relevant Person (other than a holder of Security Interests
 which together relate to all or substantially all of the assets of a Relevant
 Person) for the winding up of a Relevant Person or the appointment of a
 provisional liquidator or administrator in respect of a Relevant Person in
 any Pertinent Jurisdiction, unless the proposed winding up, appointment of a
 provisional liquidator or administration is being contested in good faith, on
 substantial grounds and not with a view to some other insolvency law
 procedure being implemented instead and either (aa) the application or petition
 is dismissed or withdrawn within 30 days of being made or presented, or (bb)
 within 30 days of the administration notice being given or filed, or the
 other relevant steps being taken, other action is taken which will ensure
 that there will be no administration and (in both cases (aa) or (bb)) the
 Relevant Person will continue to carry on business in the ordinary way and
 without being the subject of any actual, interim or pending insolvency law
 procedure; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ix)

 	
 a Relevant Person or its directors take any steps (whether by making
 or presenting an application or petition to a court, or submitting or
 presenting a document setting out a proposal or proposed terms, or otherwise)
 with a view to obtaining, in relation to that or another Relevant Person, any
 form of moratorium, suspension or deferral of payments, reorganisation of
 debt (or certain debt) or arrangement with all or a substantial proportion
 (by number or value) of creditors or of any class of them or any such
 moratorium, suspension or deferral of payments, reorganisation or arrangement
 is effected by court 

 

39

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 order, by the filing of documents with a court, by means of a contract or in any other way
 at all; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 any meeting of the members or directors, or of any committee of the board
 or senior management, of a Relevant Person is held or summoned for the
 purpose of considering a resolution or proposal to authorise or take any
 action of a type described in paragraphs (iv) to (ix) or a step preparatory
 to such action, or (with or without such a meeting) the members, directors or
 such a committee resolve or agree that such an action or step should be taken
 or should be taken if certain conditions materialise or fail to materialise;
 or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (xi)

 	
 in a Pertinent Jurisdiction other than England, any event occurs, any
 proceedings are opened or commenced or any step is taken which, in the
 opinion of the Majority Lenders is similar to any of the foregoing; or

 
	
  

 	
  

 	
  

 
	
 (h)

 	
 the Borrower
 ceases or suspends carrying on its business or a part of its business which,
 in the opinion of the Majority Lenders, is material in the context of this
 Agreement; or 

 
	
  

 	
  

 
	
 (i)

 	
 it becomes unlawful in any Pertinent Jurisdiction or impossible: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 for the
 Borrower or any Security Party to discharge any liability under a Finance
 Document or to comply with any other obligation which the Majority Lenders
 consider material under a Finance Document; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 for the
 Agent, the Security Trustee or the Lenders to exercise or enforce any right
 under, or to enforce any Security Interest created by, a Finance Document; or
 

 
	
  

 	
  

 	
  

 
	
 (j)

 	
 any official consent necessary to enable the Borrower to own, operate
 or charter the Ship or to enable the Borrower or any Security Party to comply
 with any provision which the Majority Lenders consider material of a Finance
 Document, the Shipbuilding Contract, the Transfer Agreement or the Approved
 Charter is not granted, expires without being renewed, is revoked or becomes
 liable to revocation or any condition of such a consent is not fulfilled; or 

 
	
  

 	
  

 	
  

 
	
 (k)

 	
 without the
 prior consent of the Majority Lenders (i) a change has occurred after the
 date of this Agreement in the legal ownership of any of the shares in the
 Borrower or (ii) a Material Change has occurred; or 

 
	
  

 	
  

 
	
 (l)

 	
 any
 provision which the Majority Lenders consider material of a Finance Document
 proves to have been or becomes invalid or unenforceable, or a Security
 Interest created by a Finance Document proves to have been or becomes invalid
 or unenforceable or such a Security Interest proves to have ranked after, or
 loses its priority to, another Security Interest or any other third party
 claim or interest; or 

 
	
  

 	
  

 
	
 (m)

 	
 the security constituted by a Finance Document is in any way
 imperilled or in jeopardy; or

 
	
  

 	
  

 
	
 (n)

 	
 the Borrower has not entered into the Approved Charter at least five
 (5) days prior to the Drawdown Date of the second Advance; or 

 
	
  

 	
  

 
	
 (o)

 	
 the Approved Charter is terminated before the end of the third year
 from the Delivery Date, becomes invalid or unenforceable or otherwise ceases
 to be in full force and effect for any reason (other than through the
 effluxion of time or following the sale of the Ship) and the 

 

40

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Approved Charter is not replaced within 30 days by another charter
 having similar characteristics to the Approved Charter, with a charterer, in
 a form and on terms acceptable to the Agent; or

 
	
  

 	
  

 
	
 (p)

 	
 any other event occurs or any other circumstances arise or develop
 including, without limitation:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
  

 	
 a change in the financial position, state of affairs or prospects of
 any Relevant Person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
  

 	
 any accident or other event involving the Ship or another vessel
 owned, chartered or operated by a Relevant Person;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 which materially and adversely affects the ability of the Borrower or
 the Guarantor to discharge its liabilities under the Finance Documents as
 they fall due.

 
	
  

 	
  

 
	
 18.2

 	
 Actions following
 an Event of Default. On, or at any time after, the occurrence of an Event of Default
 which is continuing:

 
	
  

 	
  

 
	
 (a)

 	
 the Agent may, and if so instructed by the Majority Lenders, the
 Agent shall:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
  

 	
 take any other action which, as a result of the Event of Default or
 any notice served under paragraph (i) or (ii), the Agent and/or the
 Lenders are entitled to take under any Finance Document or any applicable
 law; and/or

 

	
  

 	
  

 
	
 (b)

 	
 the Security Trustee may, and if so instructed by the Agent, acting
 with the authorisation of the Majority Lenders, the Security Trustee shall
 take any action which, as a result of the Event of Default or any notice
 served under paragraph (a) (i) or (ii), the Security Trustee, the Agent
 and/or the Lenders are entitled to take under any Finance Document or any
 applicable law.

 
	
  

 	
  

 
	
 18.3

 	
 Termination of
 Commitments.
 On the service of a notice under Clause 18.2(a)(i), the
 Commitments and all other obligations of each Lender to the Borrower under
 this Agreement shall be cancelled.

 
	
  

 	
  

 
	
 18.4

 	
 Acceleration of
 Loan. On the
 service of a notice under Clause 18.2(a)(ii), the Loan, all accrued
 interest and all other amounts accrued or owing from the Borrower or any
 Security Party under this Agreement and every other Finance Document shall
 become immediately due and payable or, as the case may be, payable on demand.

 
	
  

 	
  

 
	
 18.5

 	
 Multiple notices;
 action without notice. The Agent may serve notices under Clauses 18.2(a)(i) or
 (ii) simultaneously or on different dates and it and/or the Security Trustee
 may take any action referred to in Clause 18.2 simultaneously with or at
 any time after the service of both or either of such notices.

 
	
  

 	
  

 
	
 18.6

 	
 Notification of
 Creditor Parties and Security Parties. The Agent shall send to each Lender, the
 Security Trustee and each Security Party a copy or the text of any notice
 which the Agent serves on the Borrower under Clause 18.2; but the notice
 shall become effective when it is served on the Borrower, and no failure or
 delay by the Agent to send a copy or the text of the notice to 

 

41

	
  

 	
  

 
	
  

 	
 any other person shall invalidate the notice or provide the Borrower
 or any Security Party with any form of claim or defence.

 
	
  

 	
  

 
	
 18.7

 	
 Lender’s rights
 unimpaired.
 Nothing in this Clause shall be taken to impair or restrict the
 exercise of any right given to individual Lenders under a Finance Document or
 the general law; and, in particular, this Clause is without prejudice to
 Clause 3.1.

 
	
  

 	
  

 
	
 18.8

 	
 Exclusion of
 Creditor Party liability. No Creditor Party, and no receiver or manager appointed by the
 Security Trustee, shall have any liability to the Borrower or a Security
 Party:

 
	
  

 	
  

 
	
 (a)

 	
 for any loss caused by an exercise of rights under, or enforcement of
 a Security Interest created by, a Finance Document or by any failure or delay
 to exercise such a right or to enforce such a Security Interest; or

 
	
  

 	
  

 
	
 (b)

 	
 as mortgagee in possession or otherwise, for any income or principal
 amount which might have been produced by or realised from any asset comprised
 in such a Security Interest or for any reduction (however caused) in the
 value of such an asset; 

 
	
  

 	
  

 
	
  

 	
 except that this does not exempt a Creditor Party or a receiver or
 manager from liability for losses shown to have been directly and mainly
 caused by the dishonesty or the wilful misconduct of such Creditor Party’s
 own officers and employees or (as the case may be) such receiver’s or
 manager’s own partners or employees.

 
	
  

 	
  

 
	
 18.9

 	
 Relevant Persons. In this Clause 18 a “Relevant
 Person” means the Borrower, the Shareholder and
 the Guarantor, and any company which is a subsidiary of the Borrower or the
 Shareholder or of which the Borrower is a subsidiary.

 
	
  

 	
  

 
	
 18.10

 	
 Interpretation. In Clause 18.1(f) references to an
 event of default or a termination event include any event, howsoever
 described, which is similar to an event of default in a facility agreement or
 a termination event in a finance lease; and in Clause 18.1(g) “petition” includes
 an application.

 
	
  

 	
  

 
	
 18.11

 	
 Material Change. In Clause 18.1(k), “Material
 Change” means, in relation to a company, a
 change in the ultimate beneficial ownership of the shares in such company or
 the voting rights attaching to such shares which results in the person or
 persons disclosed to the Agent on or prior to the date of this Agreement as
 being the ultimate beneficial owner or owners of all such shares ultimately
 owning less than (i) 51 per cent. of such shares or the voting rights
 attaching thereto in the case of each of the Borrower, the Shareholder, Gas
 Log Carriers Ltd. and the Approved Manager and (ii) 85 per cent. of such
 shares or the voting rights attaching thereto in the case of the Guarantor.

 
	
  

 	
  

 
	
 19

 	
 FEES AND EXPENSES

 
	
  

 	
  

 
	
 19.1

 	
 Up-front and
 commitment fees.
 The Borrower shall pay to the Agent:

 
	
  

 	
  

 
	
 (a)

 	
 on the date of this Agreement a non-refundable up front fee of
 $348,066 (representing 0.20 per cent. of the Total Commitments) and;

 
	
  

 	
  

 
	
 (b)

 	
 a commitment fee for the account of the Lenders at the rate of 0.20
 per cent. of the undrawn amount of the Loan payable from (and including) 11
 March 2008 up to and including the earlier of (i) the final Drawdown Date and
 the last day of the Availability Period, such fee to be payable quarterly in
 arrears and on the earlier of the dates referred to in (i) and (ii) above,
 for distribution among the Lenders in the proportions agreed by the Agent and
 the Lenders.

 

42

	
  

 	
  

 
	
 19.2

 	
 Costs of
 negotiation, preparation etc. The Borrower shall pay to the Agent on its
 demand the amount of all expenses incurred by the Agent or the Security
 Trustee in connection with the negotiation, preparation, execution or
 registration of any Finance Document or any related document or with any transaction
 contemplated by a Finance Document or a related document.

 
	
  

 	
  

 
	
 19.3

 	
 Costs of
 variations, amendments, enforcement etc. The Borrower shall pay to the Agent, on
 the Agent’s demand, for the account of the Creditor Party concerned the
 amount of all expenses incurred by a Creditor Party in connection with:

 
	
  

 	
  

 
	
 (a)

 	
 any amendment or supplement to a Finance Document, or any proposal
 for such an amendment to be made;

 
	
  

 	
  

 
	
 (b)

 	
 any consent or waiver by the Lenders, the Majority Lenders or the
 Creditor Party concerned under or in connection with a Finance Document, or
 any request for such a consent or waiver;

 
	
  

 	
  

 
	
 (c)

 	
 the valuation of any security provided or offered under
 Clause 15 or any other matter relating to such security; or

 
	
  

 	
  

 
	
 (d)

 	
 any step taken by the Creditor Party concerned with a view to the
 protection, exercise or enforcement of any right or Security Interest created
 by a Finance Document or for any similar purpose.

 
	
  

 	
  

 
	
  

 	
 There shall be recoverable under paragraph (d) the full amount
 of all legal expenses, whether or not such as would be allowed under rules of
 court or any taxation or other procedure carried out under such rules.

 
	
  

 	
  

 
	
 19.4

 	
 Documentary taxes. The Borrower shall promptly pay any tax
 payable on or by reference to any Finance Document, and shall, on the Agent’s
 demand, fully indemnify each Creditor Party against any claims, expenses,
 liabilities and losses resulting from any failure or delay by the Borrower to
 pay such a tax.

 
	
  

 	
  

 
	
 19.5

 	
 Financial Services
 Authority fees.
 The Borrower shall pay to the Agent, on the Agent’s demand, for the
 account of the Lender concerned the amounts which the Agent from time to time
 notifies the Borrower that a Lender has notified the Agent to be necessary to
 compensate it for the cost attributable to its Contribution resulting from
 the imposition from time to time under or pursuant to the Bank of England Act
 1998 and/or by the Bank of England and/or by the Financial Services Authority
 (or other United Kingdom governmental authorities or agencies) of a
 requirement to pay fees to the Financial Services Authority calculated by
 reference to liabilities used to fund its Contribution.

 
	
  

 	
  

 
	
 19.6

 	
 Certification of
 amounts. A
 notice which is signed by 2 officers of a Creditor Party, which states that a
 specified amount, or aggregate amount, is due to that Creditor Party under
 this Clause 19 and which indicates (without necessarily specifying a
 detailed breakdown) the matters in respect of which the amount, or aggregate
 amount, is due shall be prima facie evidence that the amount, or aggregate
 amount, is due.

 
	
  

 	
  

 
	
 20

 	
 INDEMNITIES

 
	
  

 	
  

 
	
 20.1

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

 

43

	
  

 	
  

 
	
 (a)

 	
 an Advance not being borrowed on the date specified in the Drawdown
 Notice for any reason other than a default by the Lender claiming the
 indemnity;

 
	
  

 	
  

 
	
 (b)

 	
 the receipt or recovery of all or any part of the Loan or an overdue
 sum otherwise than on the last day of an Interest Period or other relevant
 period;

 
	
  

 	
  

 
	
 (c)

 	
 any failure (for whatever reason) by the Borrower to make payment of
 any amount due under a Finance Document on the due date or, if so payable, on
 demand (after giving credit for any default interest paid by the Borrower on
 the amount concerned under Clause 7);

 
	
  

 	
  

 
	
 (d)

 	
 the occurrence and/or continuance of an Event of Default or a
 Potential Event of Default and/or the acceleration of repayment of the Loan
 under Clause 18;

and in respect of any tax (other than tax on its
 overall net income) for which a Creditor Party is liable in connection with
 any amount paid or payable to that Creditor Party (whether for its own
 account or otherwise) under any Finance Document.

 
	
  

 	
  

 
	
 20.2

 	
 Breakage costs. Without limiting its generality,
 Clause 20.1 covers any claim, expense, liability or loss,
 including a loss of a prospective profit, incurred by a Lender:

 
	
  

 	
  

 
	
 (a)

 	
 in liquidating or employing deposits from third parties acquired or
 arranged to fund or maintain all or any part of its Contribution and/or any
 overdue amount (or an aggregate amount which includes its Contribution or any
 overdue amount); and

 
	
  

 	
  

 
	
 (b)

 	
 in terminating, or otherwise in connection with, any interest and/or
 currency swap or any other transaction entered into (whether with another
 legal entity or with another office or department of the Lender concerned) to
 hedge any exposure arising under this Agreement or that part which the Lender
 concerned determines is fairly attributable to this Agreement of the amount
 of the liabilities, expenses or losses (including losses of prospective
 profits) incurred by it in terminating, or otherwise in connection with, a
 number of transactions of which this Agreement is one.

 
	
  

 	
  

 
	
 20.3

 	
 Miscellaneous
 indemnities.
 The Borrower shall fully indemnify each Creditor Party severally on
 their respective demands in respect of all claims, expenses, liabilities and
 losses which may be made or brought against or incurred by a Creditor Party, in
 any country, as a result of or in connection with:

 
	
  

 	
  

 
	
 (a)

 	
 any action taken, or omitted or neglected to be taken, under or in
 connection with any Finance Document by the Agent, the Security Trustee or
 any other Creditor Party or by any receiver appointed under a Finance
 Document; or

 
	
  

 	
  

 
	
 (b)

 	
 any other Pertinent Matter;

 
	
  

 	
  

 
	
  

 	
 other than claims, expenses, liabilities and losses which are shown
 to have been directly or mainly caused by the dishonesty or wilful misconduct
 of the officers or employees of the Creditor Party concerned.

 
	
  

 	
  

 
	
  

 	
 Without prejudice to its generality, this Clause 20.3 covers any
 claims, expenses, liabilities and losses which arise, or are asserted, under
 or in connection with any law relating to safety at sea, the ISM Code, the ISPS
 Code or any Environmental Law.

 
	
  

 	
  

 
	
 20.4

 	
 Currency indemnity. If any sum due from the Borrower or any
 Security Party to a Creditor Party under a Finance Document or under any
 order or judgment relating to a Finance Document 

 

44

	
  

 	
  

 
	
  

 	
 has to be converted from the currency in which the Finance Document
 provided for the sum to be paid (the “Contractual Currency”) into another
 currency (the “Payment Currency”) for the purpose of:

 
	
  

 	
  

 
	
 (a)

 	
 making or lodging any claim or proof against the Borrower or any
 Security Party, whether in its liquidation, any arrangement involving it or
 otherwise; or

 
	
  

 	
  

 
	
 (b)

 	
 obtaining an order or judgment from any court or other tribunal; or

 
	
  

 	
  

 
	
 (c)

 	
 enforcing any such order or judgment;

 
	
  

 	
  

 
	
  

 	
 the Borrower shall indemnify the Creditor Party concerned against the
 loss arising when the amount of the payment actually received by that
 Creditor Party is converted at the available rate of exchange into the
 Contractual Currency.

 
	
  

 	
  

 
	
  

 	
 In this Clause 20.4, the “available rate of exchange” means the
 rate at which the Creditor Party concerned is able at the opening of business
 (London time) on the Business Day after it receives the sum concerned to
 purchase the Contractual Currency with the Payment Currency.

 
	
  

 	
  

 
	
  

 	
 This Clause 20.4 creates a separate liability of the Borrower
 which is distinct from its other liabilities under the Finance Documents and
 which shall not be merged in any judgment or order relating to those other
 liabilities.

 
	
  

 	
  

 
	
 20.5

 	
 Certification of
 amounts. A notice
 which is signed by 2 officers of a Creditor Party, which states that a
 specified amount, or aggregate amount, is due to that Creditor Party under
 this Clause 20 and which indicates (without necessarily specifying a
 detailed breakdown) the matters in respect of which the amount, or aggregate
 amount, is due shall be prima facie evidence that the amount, or aggregate
 amount, is due.

 
	
  

 	
  

 
	
 20.6

 	
 Sums deemed due to
 a Lender.
 For the purposes of this Clause 20, a sum payable by the Borrower
 to the Agent or the Security Trustee for distribution to a Lender shall be
 treated as a sum due to that Lender.

 
	
  

 	
  

 
	
 21

 	
 NO SET-OFF OR TAX DEDUCTION

 
	
  

 	
  

 
	
 21.1

 	
 No deductions. All amounts due from the Borrower under a
 Finance Document shall be paid:

 
	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 
	
 (b)

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

 
	
  

 	
  

 
	
 21.2

 	
 Grossing-up for
 taxes. If
 the Borrower is required by law to make a tax deduction from any payment:

 
	
  

 	
  

 
	
 (a)

 	
 the Borrower shall notify the Agent as soon as it becomes aware of
 the requirement;

 
	
  

 	
  

 
	
 (b)

 	
 the Borrower shall pay the tax deducted to the appropriate taxation
 authority promptly, and in any event before any fine or penalty arises;

 
	
  

 	
  

 
	
 (c)

 	
 the amount due in respect of the payment shall be increased by the
 amount necessary to ensure that each Creditor Party receives and retains
 (free from any liability relating to the tax deduction) a net amount which,
 after the tax deduction, is equal to the full amount which it would otherwise
 have received.

 

45

	
  

 	
  

 
	
 21.3

 	
 Evidence of payment
 of taxes.
 Within 1 month after making any tax deduction, the Borrower shall
 deliver to the Agent documentary evidence satisfactory to the Agent that the
 tax had been paid to the appropriate taxation authority.

 
	
  

 	
  

 
	
 21.4

 	
 Exclusion of tax on
 overall net income.
 In this Clause 21 “tax deduction” means any deduction or
 withholding for or on account of any present or future tax except tax on a
 Creditor Party’s overall net income.

 
	
  

 	
  

 
	
 21.5

 	
 Tax credits. A Creditor Party which receives for its
 own account a repayment or credit in respect of tax on account of which the
 Borrower has made an increased payment under Clause 21.2 shall pay to
 the Borrower a sum equal to the proportion of the repayment or credit which
 that Creditor Party allocates to the amount due from the Borrower in respect
 of which the Borrower made the increased payment:

 
	
  

 	
  

 
	
 (a)

 	
 the Creditor Party shall not be obliged to allocate to this
 transaction any part of a tax repayment or credit which is referable to a
 class or number of transactions;

 
	
  

 	
  

 
	
 (b)

 	
 nothing in this Clause 21.4 shall oblige a Creditor Party to
 arrange its tax affairs in any particular manner, to claim any type of
 relief, credit, allowance or deduction instead of, or in priority to, another
 or to make any such claim within any particular time;

 
	
  

 	
  

 
	
 (c)

 	
 nothing in this Clause 21.4 shall oblige a Creditor Party to
 make a payment which would leave it in a worse position than it would have
 been in if the Borrower had not been required to make a tax deduction from a
 payment; and

 
	
  

 	
  

 
	
 (d)

 	
 any allocation or determination made by a Creditor Party under or in
 connection with this Clause 21.4 shall be conclusive and binding on the
 Borrower and the other Creditor Parties.

 
	
  

 	
  

 
	
 22

 	
 ILLEGALITY, ETC

 
	
  

 	
  

 
	
 22.1

 	
 Illegality. This Clause 22 applies if a Lender
 (the “Notifying
 Lender”)notifies the Agent that it has become,
 or will with effect from a specified date, become:

 
	
  

 	
  

 
	
 (a)

 	
 unlawful or prohibited as a result of the introduction of a new law,
 an amendment to an existing law or a change in the manner in which an
 existing law is or will be interpreted or applied; or

 
	
  

 	
  

 
	
 (b)

 	
 contrary to, or inconsistent with, any regulation,

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
 22.2

 	
 Notification of
 illegality.
 The Agent shall promptly notify the Borrower, the Security Parties,
 the Security Trustee and the other Lenders of the notice under
 Clause 22.1 which the Agent receives from the Notifying Lender.

 
	
  

 	
  

 
	
 22.3

 	
 Prepayment;
 termination of Commitment. On the Agent notifying the Borrower under Clause 22.2, the
 Notifying Lender’s Commitment shall terminate; and thereupon or, if later, on
 the date specified in the Notifying Lender’s notice under Clause 22.1 as
 the date on which the notified event would become effective the Borrower
 shall prepay the Notifying Lender’s Contribution in accordance with Clause 8.

 

46

	
  

 	
  

 
	
 22.4

 	
 Mitigation. If circumstances arise which would result
 in a notification under Clause 22.1 then, without in any way limiting
 the rights of the Notifying Lender under Clause 22.3, the Notifying
 Lender shall use reasonable endeavours to transfer its obligations,
 liabilities and rights under this Agreement and the Finance Documents to
 another office or financial institution not affected by the circumstances but
 the Notifying Lender shall not be under any obligation to take any such
 action if, in its opinion, to do would or might:

 
	
  

 	
  

 
	
 (a)

 	
 have an adverse effect on its business, operations or financial
 condition; or

 
	
  

 	
  

 
	
 (b)

 	
 involve it in any activity which is unlawful or prohibited or any
 activity that is contrary to, or inconsistent with, any regulation; or

 
	
  

 	
  

 
	
 (c)

 	
 involve it in any expense (unless indemnified to its satisfaction) or
 tax disadvantage.

 
	
  

 	
  

 
	
 23

 	
 INCREASED COSTS

 
	
  

 	
  

 
	
 23.1

 	
 Increased costs. This Clause 23 applies if a Lender
 (the “Notifying
 Lender”) notifies the Agent that the Notifying
 Lender considers that as a result of:

 
	
  

 	
  

 
	
 (a)

 	
 the introduction or alteration after the date of this Agreement of a
 law or an alteration after the date of this Agreement in the manner in which
 a law is interpreted or applied (disregarding any effect which relates to the
 application to payments under this Agreement of a tax on the Lender’s overall
 net income); or

 
	
  

 	
  

 
	
 (b)

 	
 complying with any regulation (including any which relates to capital
 adequacy or liquidity controls or which affects the manner in which the
 Notifying Lender allocates capital resources to its obligations under this
 Agreement) which is introduced, or altered, or the interpretation or
 application of which is altered,

 
	
  

 	
  

 
	
 after the date of this Agreement, the Notifying Lender (or a parent
 company of it) has incurred or will incur an “increased cost”.

 
	
  

 	
  

 
	
 23.2

 	
 Meaning of “increased
 cost”.
 In this Clause 23, “increased cost” means, in relation to a
 Notifying Lender:

 
	
  

 	
  

 
	
 (a)

 	
 an additional or increased cost incurred as a result of, or in
 connection with, the Notifying Lender having entered into, or being a party
 to, this Agreement or a Transfer Certificate, of funding or maintaining its
 Commitment or Contribution or performing its obligations under this
 Agreement, or of having outstanding all or any part of its Contribution or
 other unpaid sums;

 
	
  

 	
  

 
	
 (b)

 	
 a reduction in the amount of any payment to the Notifying Lender
 under this Agreement or in the effective return which such a payment
 represents to the Notifying Lender or on its capital;

 
	
  

 	
  

 
	
 (c)

 	
 an additional or increased cost of funding all or maintaining all or
 any of the advances comprised in a class of advances formed by or including
 the Notifying Lender’s Contribution or (as the case may require) the
 proportion of that cost attributable to the Contribution; or

 
	
  

 	
  

 
	
 (d)

 	
 a liability to make a payment, or a return foregone, which is
 calculated by reference to any amounts received or receivable by the
 Notifying Lender under this Agreement,

 
	
  

 	
  

 
	
  

 	
 but not an item attributable to a change in the rate of tax on the
 overall net income of the Notifying Lender (or a parent company of it) or an
 item covered by the indemnity for tax in Clause 20.1 or by
 Clause 21 or an item arising directly out of the implementation or
 application 

 

47

	
  

 	
  

 
	
  

 	
 of or compliance with the “International Convergence of Capital
 Measurement and Capital Standards, a Revised Framework” published by the
 Basel Committee on Banking Supervision in June 2004, in the form existing on
 the date of this Agreement (“Basel II”) or any other law or
 regulation which implements Basel II (whether such implementation,
 application or compliance is by a government, regulator, Creditor Party or
 any of its affiliates).

 
	
  

 	
  

 
	
  

 	
 For the purposes of this Clause 23.2 the Notifying Lender may in
 good faith allocate or spread costs and/or losses among its assets and
 liabilities (or any class of its assets and liabilities) on such basis as it
 considers appropriate.

 
	
  

 	
  

 
	
 23.3

 	
 Notification to
 Borrower of claim for increased costs. The Agent shall promptly notify the
 Borrower and the Security Parties of the notice which the Agent received from
 the Notifying Lender under Clause 23.1.

 
	
  

 	
  

 
	
 23.4

 	
 Payment of
 increased costs.
 The Borrower shall pay to the Agent, on the Agent’s demand, for the
 account of the Notifying Lender the amounts which the Agent from time to time
 notifies the Borrower that the Notifying Lender has specified to be necessary
 to compensate the Notifying Lender for the increased cost.

 
	
  

 	
  

 
	
 23.5

 	
 Notice of
 prepayment.
 If the Borrower is not willing to continue to compensate the Notifying
 Lender for the increased cost under Clause 23.4, the Borrower may give
 the Agent not less than 14 days’ notice of its intention to prepay the
 Notifying Lender’s Contribution at the end of an Interest Period.

 
	
  

 	
  

 
	
 23.6

 	
 Prepayment;
 termination of Commitment. A notice under Clause 23.5 shall be irrevocable; the Agent
 shall promptly notify the Notifying Lender of the Borrower’s notice of
 intended prepayment; and:

 
	
  

 	
  

 
	
 (a)

 	
 on the date on which the Agent serves that notice, the Commitment of
 the Notifying Lender shall be cancelled; and

 
	
  

 	
  

 
	
 (b)

 	
 on the date specified in its notice of intended prepayment, the
 Borrower shall prepay (without premium or penalty) the Notifying Lender’s
 Contribution, together with accrued interest thereon at the applicable rate
 plus the Margin.

 
	
  

 	
  

 
	
 23.7

 	
 Application of
 prepayment.
 Clause 8 shall apply in relation to the prepayment.

 
	
  

 	
  

 
	
 24

 	
 SET-OFF

 

	
  

 	
  

 	
  

 	
  

 
	
 24.1

 	
 Application of
 credit balances.
 Each Creditor Party may without prior notice:

 
	
  

 	
  

 
	
 (a)

 	
 apply any balance (whether or not then due) which at any time stands
 to the credit of any account in the name of the Borrower at any office in any
 country of that Creditor Party in or towards satisfaction of any sum then due
 from the Borrower to that Creditor Party under any of the Finance Documents;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 for that purpose:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
  

 	
 break, or alter the maturity of, all or any part of a deposit of the
 Borrower;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
  

 	
 convert or translate all or any part of a deposit or other credit
 balance into Dollars;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
  

 	
 enter into any other transaction or make any entry with regard to the
 credit balance which the Creditor Party concerned considers appropriate.

 

48

	
  

 	
  

 
	
 24.2

 	
 Existing rights
 unaffected.
 No Creditor Party shall be obliged to exercise any of its rights under
 Clause 24.1; and those rights shall be without prejudice and in addition
 to any right of set-off, combination of accounts, charge, lien or other right
 or remedy to which a Creditor Party is entitled (whether under the general
 law or any document).

 
	
  

 	
  

 
	
 24.3

 	
 Sums deemed due to
 a Lender.
 For the purposes of this Clause 24, a sum payable by the Borrower
 to the Agent or the Security Trustee for distribution to, or for the account
 of, a Lender shall be treated as a sum due to that Lender; and each Lender’s
 proportion of a sum so payable for distribution to, or for the account of,
 the Lenders shall be treated as a sum due to such Lender.

 
	
  

 	
  

 
	
 24.4

 	
 No Security
 Interest.
 This Clause 24 gives the Creditor Parties a contractual right of
 set-off only and does not create any equitable charge or other Security
 Interest over any credit balance of the Borrower.

 
	
  

 	
  

 
	
 25

 	
 TRANSFERS AND CHANGES IN LENDING OFFICES

 
	
  

 	
  

 
	
 25.1

 	
 Transfer by
 Borrower.
 The Borrower may not, without the consent of the Agent, given on the
 instructions of all the Lenders transfer any of its rights, liabilities or
 obligations under any Finance Document.

 
	
  

 	
  

 
	
 25.2

 	
 Transfer by a
 Lender.
 Subject to Clause 25.4, a Lender (the “Transferor Lender”) may
 at any time, having previously consulted with the Borrower, cause:

 
	
  

 	
  

 
	
 (a)

 	
 its rights in respect of all or part of its Contribution; or

 
	
  

 	
  

 
	
 (b)

 	
 its obligations in respect of all or part of its Commitment; or

 
	
  

 	
  

 
	
 (c)

 	
 a combination of (a) and (b),

 
	
  

 	
  

 
	
  

 	
 to be (in the case of its rights) transferred to, or (in the case of
 its obligations) assumed by, another first class bank or financial
 institution which has experience in ship financing or a trust, fund or other
 entity which is regularly engaged in or established for the purpose of
 making, purchasing or investing in loans, securities or other financial
 assets (a “Transferee Lender”) by delivering to the Agent a completed
 certificate in the form set out in Schedule 4 with any modifications approved
 or required by the Agent (a “Transfer Certificate”) executed
 by the Transferor Lender and the Transferee Lender.

 
	
  

 	
  

 
	
  

 	
 Provided that at
 all times the aggregate of the Commitment of Danish Ship Finance A/S
 (Danmarks Skibskredit A/S) and its Contribution shall not be less than 50 per
 cent. of the Total Commitments.

 
	
  

 	
  

 
	
  

 	
 However any rights and obligations of the Transferor Lender in its
 capacity as Agent or Security Trustee will have to be dealt with separately
 in accordance with the Agency and Trust Agreement.

 
	
  

 	
  

 
	
 25.3

 	
 Transfer
 Certificate, delivery and notification. As soon as reasonably practicable after a
 Transfer Certificate is delivered to the Agent, it shall (unless it has
 reason to believe that the Transfer Certificate may be defective):

 
	
  

 	
  

 
	
 (a)

 	
 sign the Transfer Certificate on behalf of itself, the Borrower, the
 Security Parties, the Security Trustee and each of the other Lenders;

 

49

	
  

 	
  

 
	
 (b)

 	
 on behalf of the Transferee Lender, send to the Borrower and each
 Security Party letters or faxes notifying them of the Transfer Certificate
 and attaching a copy of it; and

 
	
  

 	
  

 
	
 (c)

 	
 send to the Transferee Lender copies of the letters or faxes sent
 under paragraph (b) above,

 
	
  

 	
  

 
	
  

 	
 but the Agent shall only be obliged to execute a Transfer Certificate
 delivered to it by the Transferor Lender and the Transferee Lender once it is
 satisfied it has complied with all necessary “know your customer” or other
 similar checks under all applicable laws and regulations in relation to the
 transfer to that Transferee Lender.

 
	
  

 	
  

 
	
 25.4

 	
 Effective Date of
 Transfer Certificate. A Transfer Certificate becomes effective on the date, if any,
 specified in the Transfer Certificate as its effective date, Provided
 that it is signed by the Agent under Clause 25.3 on or before
 that date.

 
	
  

 	
  

 
	
 25.5

 	
 No transfer without
 Transfer Certificate. No assignment or transfer of any right or obligation of a
 Lender under any Finance Document is binding on, or effective in relation to,
 the Borrower, any Security Party, the Agent or the Security Trustee unless it
 is effected, evidenced or perfected by a Transfer Certificate.

 
	
  

 	
  

 
	
 25.6

 	
 Lender
 re-organisation; waiver of Transfer Certificate. However, if a Lender enters into any
 merger, de-merger or other reorganisation as a result of which all its rights
 or obligations vest in a successor, the Agent may, if it sees fit, by notice
 to the successor and the Borrower and the Security Trustee waive the need for
 the execution and delivery of a Transfer Certificate; and, upon service of
 the Agent’s notice, the successor shall become a Lender with the same
 Commitment and Contribution as were held by the predecessor Lender.

 
	
  

 	
  

 
	
 25.7

 	
 Effect of Transfer
 Certificate.
 A Transfer Certificate takes effect in accordance with English law as
 follows:

 
	
  

 	
  

 
	
 (a)

 	
 to the extent specified in the Transfer Certificate, all rights and
 interests (present, future or contingent) which the Transferor Lender has
 under or by virtue of the Finance Documents are assigned to the Transferee
 Lender absolutely, free of any defects in the Transferor Lender’s title and
 of any rights or equities which the Borrower or any Security Party had
 against the Transferor Lender;

 
	
  

 	
  

 
	
 (b)

 	
 the Transferor Lender’s Commitment is discharged to the extent
 specified in the Transfer Certificate;

 
	
  

 	
  

 
	
 (c)

 	
 the Transferee Lender becomes a Lender with the Contribution
 previously held by the Transferor Lender and a Commitment of an amount
 specified in the Transfer Certificate;

 
	
  

 	
  

 
	
 (d)

 	
 the Transferee Lender becomes bound by all the provisions of the Finance
 Documents which are applicable to the Lenders generally, including those
 about pro-rata sharing and the exclusion of liability on the part of, and the
 indemnification of, the Agent and the Security Trustee and, to the extent
 that the Transferee Lender becomes bound by those provisions (other than
 those relating to exclusion of liability), the Transferor Lender ceases to be
 bound by them;

 
	
  

 	
  

 
	
 (e)

 	
 any part of the Loan which the Transferee Lender advances after the
 Transfer Certificate’s effective date ranks in point of priority and security
 in the same way as it would have ranked had it been advanced by the
 transferor, assuming that any defects in the transferor’s title and any
 rights or equities of the Borrower or any Security Party against the Transferor
 Lender had not existed;

 

50

	
  

 	
  

 
	
 (f)

 	
 the Transferee Lender becomes entitled to all the rights under the
 Finance Documents which are applicable to the Lenders generally, including
 but not limited to those relating to the Majority Lenders and those under
 Clause 5.5 and Clause 18, and to the extent that the Transferee
 Lender becomes entitled to such rights, the Transferor Lender ceases to be
 entitled to them; and

 
	
  

 	
  

 
	
 (g)

 	
 in respect of any breach of a warranty, undertaking, condition or
 other provision of a Finance Document or any misrepresentation made in or in
 connection with a Finance Document, the Transferee Lender shall be entitled
 to recover damages by reference to the loss incurred by it as a result of the
 breach or misrepresentation, irrespective of whether the original Lender
 would have incurred a loss of that kind or amount.

 
	
  

 	
  

 
	
  

 	
 The rights and equities of the Borrower or any Security Party
 referred to above include, but are not limited to, any right of set off and
 any other kind of cross-claim.

 
	
  

 	
  

 
	
 25.8

 	
 Maintenance of
 register of Lenders. During the Security Period the Agent shall maintain a register
 in which it shall record the name, Commitment, Contribution and
 administrative details (including the lending office) from time to time of
 each Lender holding a Transfer Certificate and the effective date (in
 accordance with Clause 25.4) of the Transfer Certificate; and the Agent
 shall make the register available for inspection by any Lender, the Security
 Trustee and the Borrower during normal banking hours, subject to receiving at
 least 3 Business Days’ prior notice.

 
	
  

 	
  

 
	
 25.9

 	
 Reliance on
 register of Lenders. The entries on that register shall, in the absence of manifest
 error, be conclusive in determining the identities of the Lenders and the amounts
 of their Commitments and Contributions and the effective dates of Transfer
 Certificates and may be relied upon by the Agent and the other parties to the
 Finance Documents for all purposes relating to the Finance Documents.

 
	
  

 	
  

 
	
 25.10

 	
 Authorisation of
 Agent to sign Transfer Certificates. The Borrower, the Security Trustee and
 each Lender irrevocably authorise the Agent to sign Transfer Certificates
 on its behalf.

 
	
  

 	
  

 
	
 25.11

 	
 Registration fee. In respect of any Transfer Certificate,
 the Agent shall be entitled to recover a registration fee of $5,000 from the
 Transferor Lender or (at the Agent’s option) the Transferee Lender.

 
	
  

 	
  

 
	
 25.12

 	
 Sub-participation;
 subrogation assignment. A Lender may sub-participate all or any part of its rights
 and/or obligations under or in connection with the Finance Documents without
 the consent of, or any notice to, the Borrower, any Security Party, the Agent
 or the Security Trustee; and the Lenders may assign, in any manner and terms
 agreed by the Majority Lenders, the Agent and the Security Trustee, all or
 any part of those rights to an insurer or surety who has become subrogated to
 them.

 
	
  

 	
  

 
	
 25.13

 	
 Disclosure of
 information.
 A Lender may disclose to a potential Transferee Lender or
 sub-participant any information which the Lender has received in relation to
 the Borrower, any Security Party or their affairs under or in connection with
 any Finance Document, unless the information is clearly of a confidential
 nature.

 
	
  

 	
  

 
	
 25.14

 	
 Change of lending
 office. A
 Lender may change its lending office by giving notice to the Agent and the
 change shall become effective on the later of:

 
	
  

 	
  

 
	
 (a)

 	
 the date on which the Agent receives the notice; and

 
	
  

 	
  

 
	
 (b)

 	
 the date, if any, specified in the notice as the date on which the
 change will come into effect.

 

51

	
  

 	
  

 
	
 25.15

 	
 Notification. On receiving such a notice, the Agent
 shall notify the Borrower and the Security Trustee; and, until the Agent
 receives such a notice, it shall be entitled to assume that a Lender is
 acting through the lending office of which the Agent last had notice.

 
	
  

 	
  

 
	
 26

 	
 VARIATIONS AND WAIVERS

 
	
  

 	
  

 
	
 26.1

 	
 Variations, waivers
 etc. by Majority Lenders. Subject to Clause 26.2, a document
 shall be effective to vary, waive, suspend or limit any provision of a
 Finance Document, or any Creditor Party’s rights or remedies under such a
 provision or the general law, only if the document is signed, or specifically
 agreed to by fax, by the Borrower, by the Agent on behalf of the Majority
 Lenders, by the Agent and the Security Trustee in their own rights, and, if
 the document relates to a Finance Document to which a Security Party is
 party, by that Security Party.

 
	
  

 	
  

 
	
 26.2

 	
 Variations, waivers
 etc. requiring agreement of all Lenders. However, as regards the following,
 Clause 26.1 applies as if the words “by the Agent on behalf of the
 Majority Lenders” were replaced by the words “by or on behalf of every
 Lender”:

 
	
  

 	
  

 
	
 (a)

 	
 a change in the Margin or in the definition of LIBOR;

 
	
  

 	
  

 
	
 (b)

 	
 a change to the date for, the amount of, any payment of principal,
 interest, fees, or other sum payable under this Agreement;

 
	
  

 	
  

 
	
 (c)

 	
 a change to any Lender’s Commitment;

 
	
  

 	
  

 
	
 (d)

 	
 an extension of Availability Period;

 
	
  

 	
  

 
	
 (e)

 	
 a change to the definition of “Majority Lenders” or “Finance Documents”;

 
	
  

 	
  

 
	
 (f)

 	
 a change to the preamble or to Clause 2, 3, 4, 5.1, 17, 18 or
 29;

 
	
  

 	
  

 
	
 (g)

 	
 a change to this Clause 26;

 
	
  

 	
  

 
	
 (h)

 	
 any release of, or material variation to, a Security Interest,
 guarantee, indemnity or subordination arrangement set out in a Finance
 Document; and

 
	
  

 	
  

 
	
 (i)

 	
 any other change or matter as regards which this Agreement or another
 Finance Document expressly provides that each Lender’s consent is required.

 
	
  

 	
  

 
	
 26.3

 	
 Exclusion of other
 or implied variations. Except for a document which satisfies the requirements of
 Clauses 26.1 and 26.2, no document, and no act, course of conduct,
 failure or neglect to act, delay or acquiescence on the part of the Creditor
 Parties or any of them (or any person acting on behalf of any of them) shall
 result in the Creditor Parties or any of them (or any person acting on behalf
 of any of them) being taken to have varied, waived, suspended or limited, or
 being precluded (permanently or temporarily) from enforcing, relying on or
 exercising:

 
	
  

 	
  

 
	
 (a)

 	
 a provision of this Agreement or another Finance Document; or

 
	
  

 	
  

 
	
 (b)

 	
 an Event of Default; or

 
	
  

 	
  

 
	
 (c)

 	
 a breach by the Borrower or a Security Party of an obligation under a
 Finance Document or the general law; or

 
	
  

 	
  

 
	
 (d)

 	
 any right or remedy conferred by any Finance Document or by the
 general law;

 

52

	
  

 	
  

 
	
  

 	
 and there shall not be implied into any Finance Document any term or
 condition requiring any such provision to be enforced, or such right or
 remedy to be exercised, within a certain or reasonable time.

 
	
  

 	
  

 
	
 27

 	
 NOTICES

 
	
  

 	
  

 
	
 27.1

 	
 General. Unless otherwise specifically provided,
 any notice under or in connection with any Finance Document shall be given by
 letter or fax; and references in the Finance Documents to written notices,
 notices in writing and notices signed by particular persons shall be
 construed accordingly.

 
	
  

 	
  

 
	
 27.2

 	
 Addresses for
 communications.
 A notice shall be sent:

 

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
  

 	
 to the Borrower:

 	
 c/o Ceres LNG Services Ltd.

 
	
  

 	
  

 	
  

 	
 Greek Branch Office

 
	
  

 	
  

 	
  

 	
 Akti Miaouli 69

 
	
  

 	
  

 	
  

 	
 GR-185 37 Piraeus,

 
	
  

 	
  

 	
  

 	
 Greece

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 For the attention of Mr. Henrik Bjerregaard

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Fax No: +30 210 4283 544

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
  

 	
 to a Lender:

 	
 At the address below its name in Schedule 1 or (as the
 case may
 require) in the relevant Transfer Certificate.

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
  

 	
 to the Agent:

 	
 Sankt Annae Plads 3

 
	
  

 	
  

 	
  

 	
 DK-1250 Copenhagen K

 
	
  

 	
  

 	
  

 	
 Denmark

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Fax No: +(45) 33 33 9666

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
  

 	
 to the Security Trustee:

 	
 Sankt Annae Plads 3

 
	
  

 	
  

 	
  

 	
 DK-1250 Copenhagen K

 
	
  

 	
  

 	
  

 	
 Denmark

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Fax No: +(45) 33 33 9666

 

	
  

 	
  

 
	
  

 	
 or to such other address as the relevant party may notify the Agent
 or, if the relevant party is the Agent or the Security Trustee, the Borrower,
 the Lenders and the Security Parties.

 
	
  

 	
  

 
	
 27.3

 	
 Effective date of
 notices.
 Subject to Clauses 27.4 and 27.5:

 
	
  

 	
  

 
	
 (a)

 	
 a notice which is delivered personally or posted shall be deemed to
 be served, and shall take effect, at the time when it is delivered;

 
	
  

 	
  

 
	
 (b)

 	
 a notice which is sent by fax shall be deemed to be served, and shall
 take effect, 2 hours after its transmission is completed.

 
	
  

 	
  

 
	
 27.4

 	
 Service outside
 business hours.
 However, if under Clause 27.3 a notice would be deemed to be
 served:

 
	
  

 	
  

 
	
 (a)

 	
 on a day which is not a business day in the place of receipt; or

 

53

	
  

 	
  

 
	
 (b)

 	
 on such a business day, but after 5 p.m. local time;

 
	
  

 	
  

 
	
  

 	
 the notice shall (subject to Clause 27.5) be deemed to be
 served, and shall take effect, at 9 a.m. on the next day which is such a
 business day.

 
	
  

 	
  

 
	
 27.5

 	
 Illegible notices. Clauses 27.3 and 27.4 do not apply if
 the recipient of a notice notifies the sender within 1hour after the time at
 which the notice would otherwise be deemed to be served that the notice has
 been received in a form which is illegible in a material respect.

 
	
  

 	
  

 
	
 27.6

 	
 Valid notices. A notice under or in connection with a Finance
 Document shall not be invalid by reason that its contents or the manner of
 serving it do not comply with the requirements of this Agreement or, where
 appropriate, any other Finance Document under which it is served if:

 
	
  

 	
  

 
	
 (a)

 	
 the failure to serve it in accordance with the requirements of this
 Agreement or other Finance Document, as the case may be, has not caused any
 party to suffer any significant loss or prejudice; or

 
	
  

 	
  

 
	
 (b)

 	
 in the case of incorrect and/or incomplete contents, it should have
 been reasonably clear to the party on which the notice was served what the
 correct or missing particulars should have been.

 
	
  

 	
  

 
	
 27.7

 	
 Electronic
 communication.
 Any communication to be made between the Agent and a Lender under or
 in connection with the Finance Documents may be made by electronic mail or
 other electronic means, if the Agent and the relevant Lender:

 
	
  

 	
  

 
	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 
	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 
	
 (c)

 	
 notify each other of any change to their respective addresses or any
 other such information supplied to them.

 
	
  

 	
  

 
	
  

 	
 Any electronic communication made between the Agent and a Lender will
 be effective only when actually received in readable form and, in the case of
 any electronic communication made by a Lender to the Agent, only if it is
 addressed in such a manner as the Agent shall specify for this purpose.

 
	
  

 	
  

 
	
 27.8

 	
 English language. Any notice under or in connection with a
 Finance Document shall be in English.

 
	
  

 	
  

 
	
 27.9

 	
 Meaning of “notice”. In this Clause 27, “notice”
 includes any demand, consent, authorisation, approval, instruction, waiver or
 other communication.

 
	
  

 	
  

 
	
 28

 	
 SUPPLEMENTAL

 
	
  

 	
  

 
	
 28.1

 	
 Rights cumulative,
 non-exclusive.
 The rights and remedies which the Finance Documents give to each
 Creditor Party are:

 
	
  

 	
  

 
	
 (a)

 	
 cumulative;

 
	
  

 	
  

 
	
 (b)

 	
 may be exercised as often as appears expedient; and

 

54

	
  

 	
  

 
	
 (c)

 	
 shall not, unless a Finance Document explicitly and specifically
 states so, be taken to exclude or limit any right or remedy conferred by any
 law. 

 
	
  

 	
  

 
	
 28.2 

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

 
	
  

 	
  

 
	
 28.3 

 	
 Counterparts. A
 Finance Document may be executed in any number of counterparts.

 
	
  

 	
  

 
	
 28.4 

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

 
	
  

 	
  

 
	
 29

 	
 LAW AND JURISDICTION 

 
	
  

 	
  

 
	
 29.1

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

 
	
  

 	
  

 
	
 29.2

 	
 Exclusive English jurisdiction.
 Subject to Clause 29.3, the courts of England shall have exclusive
 jurisdiction to settle any disputes which may arise out of or in connection
 with this Agreement. 

 
	
  

 	
  

 
	
 29.3

 	
 Choice of forum for the exclusive benefit
 of the Creditor Parties. Clause 29.2 is for the
 exclusive benefit of the Creditor Parties, each of which reserves the right: 

 
	
  

 	
  

 
	
 (a)

 	
 to commence proceedings in relation to any matter which arises out of
 or in connection with this Agreement in the courts of any country other than
 England and which have or claim jurisdiction to that matter; and 

 
	
  

 	
  

 
	
 (b)

 	
 to commence such proceedings in the courts of any such country or
 countries concurrently with or in addition to proceedings in England or
 without commencing proceedings in England. 

 
	
  

 	
  

 
	
  

 	
 The Borrower shall not commence any proceedings in any country other
 than England in relation to a matter which arises out of or in connection
 with this Agreement.

 
	
  

 	
  

 
	
 29.4

 	
 Process agent. The
 Borrower irrevocably appoints Unisea Maritime Ltd. at its registered office
 for the time being, presently at 14 Headfort Place, London SW1A 7DH, England
 to act as its agent to receive and accept on its behalf any process or other
 document relating to any proceedings in the English courts which are
 connected with this Agreement. 

 
	
  

 	
  

 
	
 29.5

 	
 Creditor Party rights unaffected.
 Nothing in this Clause 29 shall exclude or limit any right which any Creditor
 Party may have (whether under the law of any country, an international
 convention or otherwise) with regard to the bringing of proceedings, the
 service of process, the recognition or enforcement of a judgment or any
 similar or related matter in any jurisdiction. 

 
	
  

 	
  

 
	
 29.6

 	
 Meaning of “proceedings”. In this Clause 29, “proceedings” means proceedings of any kind, including
 an application for a provisional or protective measure. 

 

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

55

SCHEDULE 1

LENDERS AND COMMITMENTS

	
  

 	
  

 	
  

 
	
 Lender

 	
 Lending Office

 	
  Commitment
(US Dollars)

 
	
  

 	
  

 	
  

 
	
 Danish Ship Finance A/S

 	
 Sankt Annae Plads 3

 	
 174,033,000

 
	
 (Danmarks Skibskredit A/S)

 	
 DK-1250 Copenhagen K

 	
  

 
	
  

 	
 Denmark

 	
  

 

56

SCHEDULE 2

DRAWDOWN NOTICE

	
  

 	
  

 
	
 To:

 	
 Danish Ship Finance A/S (Danmarks Skibskredit A/S) 

 
	
  

 	
 Sankt Annae Plads 3 

 
	
  

 	
 DK-1250 Copenhagen K 

 
	
  

 	
 Denmark 

 

	
  

 	
  

 
	
 Attention: [Loans Administration]

 	
 [●]

 

DRAWDOWN NOTICE

	
  

 	
  

 
	
 1

 	
 We refer to the loan agreement (the “Loan Agreement”) dated [●] March 2008 and made between
 ourselves, as Borrower, the Lenders referred to therein, and yourselves as
 Agent and as Security Trustee in connection with a facility of up to
 US$174,033,000. Terms defined in the Loan Agreement have their defined
 meanings when used in this Drawdown Notice. 

 
	
  

 	
  

 
	
 2

 	
 We request to borrow the [first/second/third] Advance as follows:

 
	
  

 	
  

 
	
 (a)

 	
 Amount: US$[●];

 
	
  

 	
  

 
	
 (b)

 	
 Drawdown Date: [●];

 
	
  

 	
  

 
	
 (c)

 	
 Duration of the first Interest Period shall be [●] months;

 
	
  

 	
  

 
	
 (d)

 	
 Payment instructions: account of [●] and numbered [●] with [●] of
 [●]. 

 
	
  

 	
  

 
	
 3

 	
 We represent and warrant that: 

 
	
  

 	
  

 
	
 (a)

 	
 the representations and warranties in Clause 10 of the Loan Agreement
 would remain true and not misleading if repeated on the date of this notice
 with reference to the circumstances now existing; 

 
	
  

 	
  

 
	
 (b)

 	
 no Event of Default or Potential Event of Default has occurred or
 will result from the borrowing of the Loan. 

 
	
  

 	
  

 
	
 4

 	
 This notice cannot be revoked without the prior consent of the Majority
 Lenders. 

 
	
  

 	
  

 
	
 5

 	
 [We authorise you to deduct the up-front fee and any accrued
 commitment fee referred to in Clause 19 from the amount of the Advance.] 

 

	
  

 	
  

 	
  

 
	
  

 	
 [Name of Signatory]

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
 Director

 	
  

 
	
 for and on behalf of

 
	
 GAS-ONE LTD.

 

57

SCHEDULE 3

CONDITION PRECEDENT DOCUMENTS

PART A

The following are the documents referred to in Clause 9.1(a). 

	
  

 	
  

 
	
 1

 	
 A duly executed original of the Loan Agreement and the Guarantee. 

 
	
  

 	
  

 
	
 2

 	
 Copies of the certificate of incorporation and constitutional
 documents of the Borrower and each Security Party. 

 
	
  

 	
  

 
	
 3

 	
 Copies of resolutions of the shareholders (if required under the
 constitutional documents and applicable laws) and directors of the Borrower
 and each Security Party authorising the execution of each of the Finance
 Documents to which the Borrower or that Security Party is a party and, in the
 case of the Borrower, authorising named officers to give the Drawdown Notices
 and other notices under this Agreement and ratifying the execution of the
 Shipbuilding Contract and the Transfer Agreement. 

 
	
  

 	
  

 
	
 4

 	
 The original of any power of attorney under which any Finance
 Document is executed on behalf of the Borrower or (if required) a Security
 Party. 

 
	
  

 	
  

 
	
 5

 	
 Copies of all consents which the Borrower or any Security Party
 requires to enter into, or make any payment under, any Finance Document, the
 Shipbuilding Contract or the Transfer Agreement. 

 
	
  

 	
  

 
	
 6

 	
 Copies of the Shipbuilding Contract and the Transfer Agreement and of
 all documents signed or issued by the Borrower or the Builder or the Original
 Buyer (or all of them) under or in connection with it each to be in a form
 acceptable to the Agent and its lawyers. 

 
	
  

 	
  

 
	
 7

 	
 Such documents as any of the Lenders may require for its “know your
 customer” and other customary money laundering checks. 

 
	
  

 	
  

 
	
 8

 	
 Documentary evidence that the agent for service of process named in
 Clause 29 has accepted its appointment. 

 
	
  

 	
  

 
	
 9

 	
 Favourable legal opinions from lawyers appointed by the Agent on such
 matters concerning the laws of Bermuda, New York, Korea and such other
 relevant jurisdictions as the Agent may require. 

 
	
  

 	
  

 
	
 10

 	
 If the Agent so requires, in respect of any of the documents referred
 to above, a certified English translation prepared by a translator approved
 by the Agent. 

 

58

PART B

The following are the documents referred to in Clause 9.1(c). 

	
  

 	
  

 
	
 1

 	
 A written notice from the Original Buyer showing all sums due and
 payable to the Original Buyer under the Transfer Agreement. 

 
	
  

 	
  

 
	
 2

 	
 (If applicable) evidence that any balance (in addition to the first
 Advance) then due to the Original Buyer has been or will immediately on
 drawdown of that Advance be paid to the Original Buyer. 

 
	
  

 	
  

 
	
 3

 	
 A duly executed original of the Predelivery Security Assignment (and
 of each document required to be delivered pursuant thereto). 

 
	
  

 	
  

 
	
 4

 	
 Copies of the Novation Agreement and of all documents signed or
 issued by the Borrower or the Builder or the Original Buyer (or all of them)
 under or in connection with it to be in a form acceptable to the Agent and
 its lawyers. 

 
	
  

 	
  

 
	
 5

 	
 The original assignment of the Refund Guarantee, the original Refund
 Guarantee and the original Refund Guarantor’s acknowledgement to the
 assignment of the Refund Guarantee (each to be in a form acceptable to the
 Agent and its lawyers) together with evidence of the authority of the person
 executing the same for and on behalf of the Refund Guarantor. 

 
	
  

 	
  

 
	
 6

 	
 If the Agent so requires, in respect of any of the documents referred
 to above, a certified English translation prepared by a translator approved
 by the Agent. 

 

59

PART C

The following are the documents referred to in Clause 9.1(d). 

	
  

 	
  

 
	
 1

 	
 Documentary evidence that the launching of the Ship has been
 completed in accordance with the Shipbuilding Contract. 

 
	
  

 	
  

 
	
 2

 	
 A duly issued invoice from the Builder showing the fourth instalment
 due and payable to the Builder under the Shipbuilding Contract. 

 
	
  

 	
  

 
	
 3

 	
 stage certificate issued by the relevant classification society in a
 form acceptable to the Lender, confirming that the launching of the Ship has
 been completed to the satisfaction of such classification society. 

 
	
  

 	
  

 
	
 4

 	
 Evidence that any balance (in addition to the part to be paid by the
 second Advance) then due to the Builder under the Shipbuilding Contract has
 been or will immediately on drawdown of that Advance be paid to the Builder. 

 
	
  

 	
  

 
	
 5

 	
 A copy of the Approved Charter duly signed by the parties thereto. 

 

PART D

The following are the documents referred to in Clause 9.1(e). 

	
  

 	
  

 
	
 1

 	
 A duly executed original of this Mortgage, General Assignment and the
 Reinsurances Assignment (and of each document to be delivered by each of
 them). 

 
	
  

 	
  

 
	
 2

 	
 Documentary evidence that: 

 
	
  

 	
  

 
	
 (a)

 	
 the Ship has been unconditionally delivered by the Builder to, and
 accepted by, the Borrower under the Shipbuilding Contract, and the whole of
 the Contract Price (in addition to the part to be financed by the Loan) has
 been duly paid; 

 
	
  

 	
  

 
	
 (b)

 	
 the Ship is definitively and permanently registered in the name of
 the Borrower under the Applicable Flag State; 

 
	
  

 	
  

 
	
 (c)

 	
 the Ship is in the absolute and unencumbered ownership of the
 Borrower save as contemplated by the Finance Documents; 

 
	
  

 	
  

 
	
 (d)

 	
 the Ship maintains the class +A1, (E), Liquified gas carrier, ship
 type 2G (Membrane tank, Maximum pressure 25KPaG and minimum temperature
 -163°C), SH, SH-DLA, SHCM, RES, +AMS, +ACCU, SFA (40), NIBS, +APS, +ES, PORT,
 POT, CRC, DFD and UWILD with American Bureau of Shipping free of all overdue
 recommendations and conditions of such Classification Society; 

 
	
  

 	
  

 
	
 (e)

 	
 the Mortgage has been duly registered against the Ship as a valid
 first preferred priority ship mortgage in accordance with the laws of the
 applicable Approved Flag State; and 

 
	
  

 	
  

 
	
 (f)

 	
 the Ship is insured in accordance with the provisions of this
 Agreement and all requirements therein in respect of insurances have been
 complied with. 

 
	
  

 	
  

 
	
 3

 	
 Documents establishing that the Ship will, as from the final Drawdown
 Date, be managed by the Approved Manager on terms acceptable to the Lenders,
 together with: 

 

60

	
  

 	
  

 
	
 (a)

 	
 a letter of undertaking executed by the Approved Manager in favour of
 the Agent in the terms required by the Agent agreeing certain matters in
 relation to the management of the Ship and subordinating the rights of the
 Approved Manager against the Ship and the Borrower to the rights of the
 Creditor Parties under the Finance Documents; and 

 
	
  

 	
  

 
	
 (b)

 	
 copies of the Approved Manager’s Document of Compliance and of the
 Ship’s Safety Management Certificate (together with any other details of the
 applicable safety management system which the Agent requires) and the Ship’s
 ISSC. 

 
	
  

 	
  

 
	
 4

 	
 Favourable legal opinions from lawyers appointed by the Agent on such
 matters concerning the laws of Bermuda, the applicable Approved Flag State
 and such other relevant jurisdictions as the Agent may require. 

 
	
  

 	
  

 
	
 5

 	
 A favourable opinion from an independent insurance consultant
 acceptable to the Agent on such matters relating to the insurances for the
 Ship as the Agent may require. 

 
	
  

 	
  

 
	
 6

 	
 If the Agent so requires, in respect of any of the documents referred
 to above, a certified English translation prepared by a translator approved
 by the Agent. 

 

Each of the documents specified in paragraphs 2, 3, 5 and 6 of Part A,
paragraph 4 of Part B and paragraph 5 of Part C and every other copy document
delivered under this Schedule shall be certified as a true and up to date copy
by a director or the secretary (or equivalent officer) of the Borrower. 

61

SCHEDULE 4

TRANSFER CERTIFICATE

The Transferor and the Transferee accept
exclusive responsibility for ensuring that this Certificate and the transaction
to which it relates comply with all legal and regulatory requirements
applicable to them respectively.

	
  

 	
  

 
	
 To:

 	
 Danish Ship Finance A/S (Danmarks Skibskredit A/S) for itself and for
 and on behalf of the Borrower, each Security Party, the Security Trustee and
 each Lender, as defined in the Loan Agreement referred to below.

 
	
  

 	
  

 
	
  

 	
 [●]

 
	
 1

 	
 This Certificate relates to a Loan Agreement (“the “Agreement”) dated
 [●] March 2008 and made between (1) Gas-One Ltd. (the “Borrower”), (2)
 the banks and financial institutions named therein, (3) Danish Ship Finance
 A/S (Danmarks Skibskredit A/S) as Agent and (4) Danish Ship Finance A/S
 (Danmarks Skibskredit A/S) as Security Trustee for a loan facility of up to
 US$174,033,000.

 
	
  

 	
  

 
	
 2

 	
 In this Certificate, terms defined in the Agreement shall, unless the
 contrary intention appears, have the same meanings when used in this
 Certificate and:

 
	
  

 	
  

 
	
  

 	
 “Relevant Parties” means the Agent, the Borrower, each
 Security Party, the Security Trustee and each Lender;

 
	
  

 	
  

 
	
  

 	
 “Transferor” means [full name] of [lending office];

 
	
  

 	
  

 
	
  

 	
 “Transferee” means [full name] of [lending office].

 
	
  

 	
  

 
	
 3

 	
 The effective date of this Certificate is [●], Provided that this
 Certificate shall not come into effect unless it is signed by the Agent on or
 before that date.

 
	
  

 	
  

 
	
 4

 	
 The Transferor assigns to the Transferee absolutely all rights and
 interests (present, future or contingent) which the Transferor has as Lender
 under or by virtue of the Agreement and every other Finance Document in
 relation to [●] per cent. of its Contribution, which percentage represents
 $[●].

 
	
  

 	
  

 
	
 5

 	
 By virtue of this Transfer Certificate and Clause 25 of the
 Agreement, the Transferor is discharged [entirely from its Commitment which
 amounts to $[●] [from [●] per cent. of its Commitment, which percentage
 represents $[●]] and the Transferee acquires a Commitment of $[●].

 
	
  

 	
  

 
	
 6

 	
 The Transferee undertakes with the Transferor and each of the
 Relevant Parties that the Transferee will observe and perform all the
 obligations under the Finance Documents which Clause 25 of the Agreement
 provides will become binding on it upon this Certificate taking effect.

 
	
  

 	
  

 
	
 7

 	
 The Agent, at the request of the Transferee (which request is hereby
 made) accepts, for the Agent itself and for and on behalf of every other
 Relevant Party, this Certificate as a Transfer Certificate taking effect in
 accordance with Clause 25 of the Agreement.

 

62

	
  

 	
  

 	
  

 
	
 8

 	
 The Transferor:

 
	
  

 	
  

 
	
 (a)

 	
 warrants to the Transferee and each Relevant Party that:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the Transferor has full capacity to enter into this transaction and
 has taken all corporate action and obtained all consents which are required
 in connection with this transaction; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 this Certificate is valid and binding as regards the Transferor;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 warrants to the Transferee that the Transferor is absolutely
 entitled, free of encumbrances, to all the rights and interests covered by the
 assignment in paragraph 4; and

 
	
  

 	
  

 
	
 (c)

 	
 undertakes with the Transferee that the Transferor will, at its own
 expense, execute any documents which the Transferee reasonably requests for
 perfecting in any relevant jurisdiction the Transferee’s title under this
 Certificate or for a similar purpose.

 
	
  

 	
  

 
	
 9

 	
 The Transferee:

 
	
  

 	
  

 
	
 (a)

 	
 confirms that it has received a copy of the Agreement and each of the
 other Finance Documents;

 
	
  

 	
  

 
	
 (b)

 	
 agrees that it will have no rights of recourse on any ground against
 either the Transferor, the Agent, the Security Trustee or any Lender in the
 event that:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 any of the Finance Documents prove to be invalid or ineffective;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the Borrower or any Security Party fails to observe or perform its
 obligations, or to discharge its liabilities, under any of the Finance
 Documents; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 it proves impossible to realise any asset covered by a Security
 Interest created by a Finance Document, or the proceeds of such assets are
 insufficient to discharge the liabilities of the Borrower or any Security
 Party under any of the Finance Documents;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 agrees that it will have no rights of recourse on any ground against
 the Agent, the Security Trustee or any Lender in the event that this
 Certificate proves to be invalid or ineffective;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 warrants to the Transferor and each Relevant Party that:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 it has full capacity to enter into this transaction and has taken all
 corporate action and obtained all consents which it needs to take or obtain
 in connection with this transaction; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 this Certificate is valid and binding as regards the Transferee; and

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 confirms the accuracy of the administrative details set out below
 regarding the Transferee.

 
	
  

 	
  

 	
  

 
	
 10

 	
 The Transferor and the Transferee each undertake with the Agent and
 the Security Trustee severally, on demand, fully to indemnify the Agent
 and/or the Security Trustee in respect of any claim, proceeding, liability or
 expense (including all legal expenses) which they or either of them may incur
 in connection with this Certificate or any matter arising out of it, except
 such as are shown to have been mainly and directly caused by the gross and
 culpable negligence or dishonesty of the Agent’s or the Security Trustee’s
 own officers or employees.

 

63

	
  

 	
  

 
	
 11

 	
 The Transferee shall repay to the Transferor on demand so much of any
 sum paid by the Transferor under paragraph 10 as exceeds one-half of the
 amount demanded by the Agent or the Security Trustee in respect of a claim,
 proceeding, liability or expense which was not reasonably foreseeable at the
 date of this Certificate; but nothing in this paragraph shall affect the
 liability of each of the Transferor and the Transferee to the Agent or the
 Security Trustee for the full amount demanded by it.

 

	
  

 	
  

 	
  

 
	
 [Name of Transferor]

 	
  

 	
 [Name of
 Transferee]

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
 By:

 
	
  

 	
  

 	
  

 
	
 Date:

 	
  

 	
 Date:

 

Agent

Signed for
itself and for and on behalf of itself 

as Agent and for every other Relevant Party

[Name of
Agent] 

By:

Date:

64

SCHEDULE 5

LIST OF LNG SHIPBROKERS

R.S. Platou
Finans a.s 

P.O. Box 1604 Vika 

N-0119 Oslo

Norway

Fearnleys
(Oslo office) 

Grey Wedels Plass 9 

P.O. Box 1158, Sentrum 

0107 Oslo

Norway

Tel. +47 22 93 60 00

Braemar
Seascope (Head Office) 

35 Cosway Street

London NW1 5BT

UK

Tel. +44207 535 2650

Poten &
Partners (UK office) 

Viewpoint

20 Balderton Street

London W1K 6TL

UK

Clarkson PLC

St Magnus House

3Lower Thames Street 

London EC3R 6HE 

UK

65

EXECUTION PAGE

	
  

 	
  

 	
  

 
	
 BORROWER

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 SIGNED by

 	
 )

 	
 /s/ Elly Eleftheriou 

 
	
  

 	
 )

 	
  

 
	
 for and on
 behalf of

 	
 )

 	
  

 
	
 GAS-ONE LTD.

 	
 )

 	
  

 

	
  

 	
  

 	
  

 
	
 LENDERS

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 SIGNED by

 	
 )

 	
 /s/ Christoforos Bismpikos 

 
	
  

 	
 )

 	
  

 
	
 for and on
 behalf of

 	
 )

 	
  

 
	
 DANISH SHIP FINANCE A/S

 	
 )

 	
  

 
	
  (DANMARKS SKIBSKREDIT A/S)

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
 AGENT

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 SIGNED by

 	
 )

 	
 /s/ Christoforos Bismpikos 

 
	
  

 	
 )

 	
  

 
	
 for and on
 behalf of

 	
 )

 	
  

 
	
 DANISH SHIP FINANCE A/S

 	
 )

 	
  

 
	
  (DANMARKS SKIBSKREDIT A/S)

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
 SECURITY TRUSTEE

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 SIGNED by

 	
 )

 	
 /s/ Christoforos Bismpikos 

 
	
  

 	
 )

 	
  

 
	
 for and on
 behalf of BANISH SHIP 
FINANCIAL A/S (DANMARKS 
SKIBSKREDIT A/S)

 	
 )
)
)

 	
  

 
	
  

 	
  

 	
  

 
	
 Witness to
 all the

 	
  

 	
  

 
	
 above
 signatures

 	
  

 	
 /s/ Alexia Hatzimichalis 

 
	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 
	
 Address:

 	
  

 	
  

 

66Exhibit 10.2

Private &
Confidential

	
  

 	
  

 	
  

 	
  

 
	
 Dated 17 November 2009

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
 GAS-two Ltd.

 	
  (1)

 
	
 arranged by

 	
  

 
	
  

 	
  

 
	
 DnB NOR BANK ASA

 	
  (2)

 
	
  

 	
  

 
	
 NATIONAL BANK OF GREECE S.A.

 	
  (3)

 
	
  

 	
  

 
	
 UBS AG

 	
  (4)

 
	
  

 	
  

 
	
 with

 	
  

 
	
  

 	
  

 
	
 DnB NOR BANK ASA

 	
  (5)

 
	
 as Agent

 	
  

 
	
  

 	
  

 
	
 DnB NOR BANK ASA

 	
  (6)

 
	
 as Security Agent

 	
  

 
	
  

 
	
  

 	 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FACILITY AGREEMENT

 	
  

 	
  

 
	
  

 	
 $147,500,000 Loan Facility

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 	
  

 

 

Contents

	
  

 	
  

 	
  

 	
  

 
	
 Clause

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
 1

 	
 Definitions
 and interpretation

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 2

 	
 The Facility

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 
	
 3

 	
 Purpose

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 
	
 4

 	
 Conditions
 of Utilisation

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 
	
 5

 	
 Utilisation

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 
	
 6

 	
 Repayment

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
 Illegality,
 prepayment and cancellation

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 
	
 8

 	
 Interest

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
 Interest
 Periods

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 
	
 10

 	
 Changes to
 the calculation of interest

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
 Fees

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 12

 	
 Tax gross-up
 and indemnities

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 13

 	
 Increased
 Costs

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 14

 	
 Other
 indemnities

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 15

 	
 Mitigation
 by the Lenders

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 
	
 16

 	
 Costs and
 expenses

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 17

 	
 Representations

 	
  

 	
 35

 
	
  

 	
  

 	
  

 	
  

 
	
 18

 	
 Information
 undertakings

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 
	
 19

 	
 General
 undertakings

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 
	
 20

 	
 Construction
 period

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 
	
 21

 	
 Dealings
 with Ship

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 
	
 22

 	
 Condition
 and operation of Ship

 	
  

 	
 50

 
	
  

 	
  

 	
  

 	
  

 
	
 23

 	
 Insurance

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 
	
 24

 	
 Minimum
 security value

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 
	
 25

 	
 Chartering
 undertakings

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 
	
 26

 	
 Bank
 accounts

 	
  

 	
 60

 

	
  

 	
  

 	
  

 	
  

 
	
 27

 	
 Business
 restrictions

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 
	
 28

 	
 Events of
 Default

 	
  

 	
 65

 
	
  

 	
  

 	
  

 	
  

 
	
 29

 	
 Changes to
 the Lenders

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 
	
 30

 	
 Changes to
 the Obligors

 	
  

 	
 73

 
	
  

 	
  

 	
  

 	
  

 
	
 31

 	
 Roles of
 Agent, Security Agent and Arranger

 	
  

 	
 74

 
	
  

 	
  

 	
  

 	
  

 
	
 32

 	
 Conduct of
 business by the Finance Parties

 	
  

 	
 86

 
	
  

 	
  

 	
  

 	
  

 
	
 33

 	
 Sharing
 among the Finance Parties

 	
  

 	
 88

 
	
  

 	
  

 	
  

 	
  

 
	
 34

 	
 Payment
 mechanics

 	
  

 	
 90

 
	
  

 	
  

 	
  

 	
  

 
	
 35

 	
 Set-off

 	
  

 	
 92

 
	
  

 	
  

 	
  

 	
  

 
	
 36

 	
 Notices

 	
  

 	
 92

 
	
  

 	
  

 	
  

 	
  

 
	
 37

 	
 Calculations
 and certificates

 	
  

 	
 94

 
	
  

 	
  

 	
  

 	
  

 
	
 38

 	
 Partial
 invalidity

 	
  

 	
 95

 
	
  

 	
  

 	
  

 	
  

 
	
 39

 	
 Remedies and
 waivers

 	
  

 	
 95

 
	
  

 	
  

 	
  

 	
  

 
	
 40

 	
 Amendments
 and grant of waivers

 	
  

 	
 95

 
	
  

 	
  

 	
  

 	
  

 
	
 41

 	
 Counterparts

 	
  

 	
 96

 
	
  

 	
  

 	
  

 	
  

 
	
 42

 	
 Governing
 law

 	
  

 	
 97

 
	
  

 	
  

 	
  

 	
  

 
	
 43

 	
 Enforcement

 	
  

 	
 97

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 1
 The original parties

 	
  

 	
 98

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 2
 Ship information

 	
  

 	
 101

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 3
 Conditions precedent

 	
  

 	
 102

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 4
 Utilisation Request

 	
  

 	
 108

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 5
 Selection Notice

 	
  

 	
 109

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 6
 Mandatory Cost Formula

 	
  

 	
 110

 
	
  

 	
  

 	
  

 	
  

 
	
 Schedule 7
 Form of Transfer Certificate

 	
  

 	
 113

 

	
  

 	
  

 
	
 THIS AGREEMENT
 is dated 17 November 2009 and made between:

 
	
  

 	
  

 
	
 (1)

 	
 GAS-two Ltd.
 (the Borrower);

 
	
  

 	
  

 
	
 (2)

 	
 DnB NOR BANK ASA,
 NATIONAL BANK OF GREECE S.A. and UBS AG as mandated lead arrangers
 (whether acting individually or together the Arrangers);

 
	
  

 	
  

 
	
 (3)

 	
 THE FINANCIAL
 INSTITUTIONS listed in Schedule 1 as
 lenders (the Original Lenders);

 
	
  

 	
  

 
	
 (4)

 	
 DnB NOR BANK ASA
 as agent of the other Finance Parties (the Agent)
 and

 
	
  

 	
  

 
	
 (5)

 	
 DnB NOR BANK ASA
 as security agent for the Finance Parties (the Security Agent).

 
	
  

 	
  

 
	
 IT IS AGREED
 as follows:

 

SECTION 1 - INTERPRETATION

	
  

 	
  

 	
  

 
	
 1

 	
  

 	
 Definitions
 and interpretation

 
	
  

 	
  

 	
  

 
	
 1.1

 	
  

 	
 Definitions

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this Agreement and (unless otherwise
 defined in the relevant Finance Document) the other Finance Documents:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account
 means any bank account, deposit or certificate of deposit opened, made or
 established in accordance with clause 26 (Bank
 accounts).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account Bank means,
 in relation to any Account, either the Security Agent or another bank or
 financial institution approved by the Majority Lenders at the request of the
 Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Accounting
 Reference Date means 31
 December 2008 or such other date as may be approved.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account Security means,
 in relation to an Account, a deed or other instrument by the Borrower in favour
 of the Security Agent in an agreed form conferring a Security Interest over
 that Account.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Additional Cost
 Rate has the meaning given to it in
 Schedule 6 (Mandatory Cost formulae).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Advance means
 each borrowing of a proportion of the Total Commitments by the Borrower or
 (as the context may require) the outstanding principal amount of such
 borrowing.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Agent includes
 any person who may be appointed as agent under this Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Auditors
 means one of Moore Stephens, PricewaterhouseCoopers, Ernst & Young, KPMG
 or Deloitte & Touche or another approved firm.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Available Facility
 means, at any relevant time, such part of the Total Commitments (drawn and
 undrawn) which is available for borrowing under this Agreement at such time
 in accordance with clause 4 (Conditions of
 Utilisation).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Basel 2 Accord
 means the “International Convergence of Capital Measurement and Capital
 Standards, a Revised Framework” published by the Basel Committee on Banking
 Supervision in June 2004 in the form existing on the date of this Agreement.

 

1

	
  

 	
  

 	
  

 
	
  

 	
 Basel 2 Approach
 means, in relation to any Lender, either the Standardised Approach or the
 relevant Internal Ratings Based Approach (each as defined in the Basel 2
 Accord) adopted by that Lender (or any of its Affiliates) for the purposes of
 implementing or complying with the Basel 2 Accord.

 
	
  

 	
  

 
	
  

 	
 Basel 2 Regulation
 means (a) any law or regulation implementing the Basel 2 Accord or (b) any
 Basel 2 Approach adopted by the Lender.

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
 (a) 

 	
 the interest 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 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

 
	
  

 	
  

 
	
  

 	
 Builder
 means the person specified as such in Schedule 2 (Ship information).

 
	
  

 	
  

 
	
  

 	
 Building Contract
 means the shipbuilding contract specified in Schedule 2 (Ship information) between the Builder
 and the Borrower relating to the construction of the Ship and as may further
 be supplemented, amended or varied in accordance with the terms thereof.

 
	
  

 	
  

 
	
  

 	
 Building Contract
 Documents means the Building Contract,
 any Refund Guarantee and any other guarantee or security given to any person
 for the Builder’s obligations under the Building Contract.

 
	
  

 	
  

 
	
  

 	
 Business Day
 means a day (other than a Saturday or Sunday) on which banks are open for
 general business in London, Piraeus, Zurich, Monaco and New York.

 
	
  

 	
  

 
	
  

 	
 Change of Control
 occurs when (a) the Borrower ceases to be a wholly-owned subsidiary of GasLog
 Carriers; or (b) GasLog Carriers ceases to be a wholly-owned subsidiary of
 GasLog; or (c) The Counter Guarantor ceases to own not less than 51% of (i)
 the issued and outstanding share capital and (ii) the voting rights of the
 Counter Guarantor Subsidiary and GasLog; or (d) Ceres LNG Services Ltd.
 ceases to be a wholly-owned subsidiary of GasLog; or (e) if there is a change
 of 15% or more in the shareholding of, or in the voting rights relative to,
 the Counter Guarantor from that described to the Lenders on or before the
 date of this Agreement.

 
	
  

 	
  

 
	
  

 	
 Charged Property
 means all of the assets of the Obligors which from time to time are, or are
 expressed or intended to be, the subject of the Security Documents.

 
	
  

 	
  

 
	
  

 	
 Charter
 means the charter commitment details of which are provided in Schedule 2 (Ship information).

 
	
  

 	
  

 
	
  

 	
 Charter Documents
 means the Charter, any documents supplementing it and any guarantee or
 security given by any person for the Charterer’s obligations under it.

 
	
  

 	
  

 
	
  

 	
 Charter Assignment
 means an assignment by the Borrower of its interest in the Charter Documents
 in favour of the Security Agent in the agreed form.

 
	
  

 	
  

 
	
  

 	
 Charterer
 means the charterer named in Schedule 2 (Ship
 information).

 

2

	
  

 	
  

 	
  

 
	
  

 	
 Classification
 means the classification specified in Schedule 2 (Ship information) with the Classification Society or another
 classification approved by the Lenders as its classification, at the request
 of the Borrower.

 
	
  

 	
  

 
	
  

 	
 Classification
 Society means the classification
 society specified in Schedule 2 (Ship
 information) or another classification society approved by the
 Lenders as its Classification Society,
 at the request of the Borrower.

 
	
  

 	
  

 
	
  

 	
 Commitment
 means:

 
	
  

 	
  

 
	
  

 	
 (a) 

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (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.

 
	
  

 	
  

 
	
  

 	
 Constitutional
 Documents means, in respect of an
 Obligor, such Obligor’s memorandum and articles of association, bye-laws or
 other constitutional documents including as referred to in any certificate
 relating to an Obligor delivered pursuant to Schedule 3 (Conditions precedent).

 
	
  

 	
  

 
	
  

 	
 Contract Price
 means the price of the Ship payable under the Building Contract.

 
	
  

 	
  

 
	
  

 	
 Counter Guarantee
 means the counter guarantee of the Counter Guarantor in favour of the
 Security Agent in the agreed form.

 
	
  

 	
  

 
	
  

 	
 Counter Guarantor
 means a person acceptable to the Lenders at their discretion which may now or
 at any time throughout the Facility Period guarantee the obligations and
 liabilities of the Borrower to the Lenders.

 
	
  

 	
  

 
	
  

 	
 Counter Guarantor
 Subsidiary means the Subsidiary of the
 Counter Guarantor designated in the Counter Guarantee.

 
	
  

 	
  

 
	
  

 	
 Counter Guarantor
 Representations Letter means a
 letter dated 21 August 2009 issued by the Counter Guarantor to the Agent.

 
	
  

 	
  

 
	
  

 	
 Deed of Covenant
 means a first deed of covenant by the Borrower in favour of the Security
 Agent in the agreed form.

 
	
  

 	
  

 
	
  

 	
 Default
 means an Event of Default or any event or circumstance 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 them) be an
 Event of Default.

 
	
  

 	
  

 
	
  

 	
 Defaulting Lender
 means any Lender:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 which has failed to make its participation
 in an Advance available or has notified the Agent that it will not make its
 participation in an Advance available by the Utilisation Date of that Advance
 in accordance with clause 5.4 (Lenders’
 participation);

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 which has otherwise rescinded or repudiated
 a Finance Document; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 with respect to which an Insolvency Event
 has occurred and is continuing, 

 
	
  

 	
  

 
	
  

 	
 unless, in the case of paragraph (a) above:

 

3

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 its failure to pay is caused by:

 
	
  

 
	
  

 	
  

 	
  

 	
 (A) 

 	
 administrative or technical error; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 a Disruption Event; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 payment is made within three Business Days
 of its due date; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 the Lender is disputing in good faith
 whether it is contractually obliged to make the payment in question.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery
 means the delivery and acceptance of the Ship by the Borrower under the
 Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery Commitment
 means the amount specified in Schedule 2 (Ship
 information), as cancelled or reduced pursuant to any provision of
 this Agreement, to be used partly to finance its Delivery Instalment.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery Date
 means the date on which the Ship is delivered to the Borrower pursuant to the
 Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Delivery Instalment
 means the instalment of the Contract Price falling due on Delivery.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (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,

 
	
  

 	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Earnings
 means, in relation to the Ship and a person, all money at any time payable to
 that person for or in relation to the use or operation of the Ship including
 freight, hire and passage moneys, money payable to that person for the
 provision of services by or from the Ship or under any charter commitment,
 requisition for hire compensation, remuneration for salvage and towage
 services, demurrage and detention moneys and damages for breach and payments
 for termination or variation of any charter commitment.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Enforcement Costs
 means any costs, expenses, liabilities or other amounts in respect of which
 any amount is payable under clauses 14.4 (Indemnity
 concerning security) or 16.3 (Enforcement
 and preservation costs) or under any other Finance Document to
 which those provisions apply and any remuneration payable to a Receiver in
 connection with any Security Documents.

 

4

	
  

 	
  

 	
  

 
	
  

 	
 Environmental
 Claims means:

 
	
  

 	
  

 
	
  

 	
 (a) 

 	
 enforcement, clean-up, removal or other
 governmental or regulatory action or orders or claims instituted or made
 pursuant to any Environmental Laws or resulting from a Spill; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any claim made by any other person relating
 to a Spill.

 
	
  

 	
  

 
	
  

 	
 Environmental
 Incident means any Spill from any Fleet
 Vessel in circumstances where:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 any Fleet Vessel or its owner, operator or
 manager may be liable for Environmental Claims arising from the Spill (other
 than Environmental Claims arising and fully satisfied before the date of this
 Agreement); and/or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any Fleet Vessel may be arrested or
 attached in connection with any such Environmental Claim.

 
	
  

 	
  

 
	
  

 	
 Environmental Laws
 means all laws, regulations and conventions concerning pollution or
 protection of human health or the environment.

 
	
  

 	
  

 
	
  

 	
 Event of Default
 means any event or circumstance specified as such in clause 28 (Events of Default).

 
	
  

 	
  

 
	
  

 	
 Existing Loan
 Agreement means the $80,000,000 secured
 loan agreement dated 11 March 2008 entered into between (i) the Borrower,
 (ii) DnB NOR Bank ASA as original lender and DnB NOR Bank ASA as mandated
 lead arranger, underwriter, agent and security trustee under which
 $80,000,000 is outstanding at the date of this Agreement.

 
	
  

 	
  

 
	
  

 	
 Facility
 means the term loan facility made available under this Agreement as described
 in clause 2 (The Facility).

 
	
  

 	
  

 
	
  

 	
 Facility Office
 means the office or offices notified by a Lender to the Agent in writing on
 or before the date it becomes a Lender (or, following that date, by not less
 than five Business Days’ written notice) as the office through which it will
 perform its obligations under this Agreement.

 
	
  

 	
  

 
	
  

 	
 Facility Period
 means the period from and including the date of this Agreement to and
 including the date on which the Total Commitments have reduced to zero and
 all indebtedness of the Obligors under the Finance Documents has been fully
 paid and discharged.

 
	
  

 	
  

 
	
  

 	
 Fee Letter
 means any letter dated on or about the date of this Agreement between the
 Arrangers and the Borrower (or the Agent and the Borrower) setting out any of
 the fees referred to in clause 11 (Fees).

 
	
  

 	
  

 
	
  

 	
 Final Repayment
 Date means, subject to clause 34.7 (Business Days), the earlier of (a) 31
 March 2014 and (b) the 12th Repayment Date (if, with approval, the Delivery
 Date shall be delayed to a date between 1 December 2010 and 16 February 2011)
 or, as the case may be, the 13th Repayment Date (if, with approval, the
 Delivery Date shall be delayed to a date between 1 September 2010 and 30
 November 2010) or, as the case may be, the 14th Repayment Date (if the
 Delivery Date shall be on or before 31 August 2010).

 
	
  

 	
  

 
	
  

 	
 Finance Documents
 means this Agreement, any Fee Letter, the Counter Guarantor Representations
 Letter, the Security Documents, any Transfer Certificate and any other
 document designated as such by the Agent and the Borrower.

 

5

	
  

 	
  

 	
  

 
	
  

 	
 Finance Party
 means the Agent, the Security Agent, any Arranger or a Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
 Financial
 Indebtedness means any indebtedness for or
 in respect of:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 moneys borrowed;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any amount raised by acceptance under any
 acceptance credit facility or dematerialised equivalent;

 
	
  

 	
  

 	
  

 
	
  

 	
 (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 GAAP, 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 Treasury Transaction (and, when
 calculating the value of that Treasury Transaction, only the marked to market
 value 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 an
 advance or deferred purchase agreement if (a) one of the primary reasons
 behind entering into the agreement is to raise finance or (b) the agreement
 is in respect of the supply of assets or services and payment is due more
 than 180 days after the date of supply;

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any amount raised under any other
 transaction (including any forward sale or purchase agreement) having the
 commercial effect of a borrowing; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 the amount of any liability in respect of
 any guarantee for any of the items referred to in paragraphs (a) to (i)
 above.

 
	
  

 	
  

 	
  

 
	
  

 	
 First Repayment
 Date means, subject to clause 34.7 (Business Days), the earlier of:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the date falling three months after the
 Last Availability Date; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the date falling three months after the
 Delivery Date.

 
	
  

 
	
  

 	
 Fixed Rate
 Differential Account means any
 Account designated as a “Fixed Rate
 Differential Account” for the
 purposes of clause 26 (Bank Accounts).

 
	
  

 	
  

 
	
  

 	
 Fixed Rate
 Differential Amount means in
 respect of any Interest Period, an amount accruing on the Loan at a rate
 equal to 3.25% less LIBOR during that Interest Period (the Rate), which amount shall accrue when the
 Rate is positive and nil otherwise.

 
	
  

 	
  

 	
  

 
	
  

 	
 Flag State
 means the country specified in Schedule 2 (Ship
 information), or such other state or territory as may be approved
 by the Lenders, at the request of the Borrower, as being the “Flag
 State” for the purposes of the Finance Documents.

 
	
  

 	
  

 
	
  

 	
 Fleet Vessel
 means the Ship and any other vessel directly or indirectly owned by any
 Obligor or any Subsidiary of an Obligor.

 
	
  

 	
  

 
	
  

 	
 GAAP
 means International Accounting Standards, International Financial Reporting
 Standards and related interpretations as amended, supplemented, issued or
 adopted from

 

6

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 time to time by the International
 Accounting Standards Board to the extent applicable to the relevant financial
 statements.

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog
 means the company described as such in Schedule 1 (The original parties).

 
	
  

 	
  

 	
  

 
	
  

 	
 GasLog Carriers
 means the company described as such in Schedule 1 (The original parties).

 
	
  

 	
  

 	
  

 
	
  

 	
 Group
 means the Counter Guarantor and its Subsidiaries for the time being and, for
 the purposes of clause 18.1 (Financial
 statements) or clause 5 of the Counter Guarantee (Financial Covenants), any other entity
 required to be treated as a subsidiary in its consolidated accounts in
 accordance with GAAP and/or any applicable law.

 
	
  

 	
  

 	
  

 
	
  

 	
 Guarantee
 means the guarantee of each of the Guarantors in favour of the Security Agent
 in the agreed form.

 
	
  

 	
  

 	
  

 
	
  

 	
 Guarantors
 means persons acceptable to the Lenders at their discretion which may now or
 at any time throughout the Facility Period guarantee the obligations and
 liabilities of the Borrower to the Lenders.

 
	
  

 	
  

 	
  

 
	
  

 	
 Holding Company
 means, in relation to a company or corporation, any other company or
 corporation in respect of which it is a Subsidiary.

 
	
  

 	
  

 	
  

 
	
  

 	
 Indemnified Person
 means:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 each Finance Party and each Receiver and
 any attorney, agent or other person appointed by them under the Finance
 Documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 each Affiliate of those persons; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 any officers, employees or agents of any of
 the above persons.

 
	
  

 	
  

 	
  

 
	
  

 	
 Insolvency Event
 in relation to a Finance Party means that the Finance Party:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 is dissolved (other than pursuant to a
 consolidation, amalgamation or merger);

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 becomes insolvent or is unable to pay its
 debts or fails or admits in writing its inability generally to pay its debts
 as they become due;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 makes a general assignment, arrangement or
 composition with or for the benefit of its creditors;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 institutes or has instituted against it, by
 a regulator, supervisor or any similar official with primary insolvency,
 rehabilitative or regulatory jurisdiction over it in the jurisdiction of its
 incorporation or organisation or the jurisdiction of its head or home office,
 a proceeding seeking a judgment of insolvency or bankruptcy or any other relief
 under any bankruptcy or insolvency law or other similar law affecting
 creditors’ rights, or a petition is presented for its winding up or
 liquidation by it or such regulator, supervisor or similar official;

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 has instituted against it a proceeding
 seeking a judgment of insolvency or bankruptcy or any other relief under any
 bankruptcy or insolvency law or other similar law affecting creditors’
 rights, or a petition is presented for its winding up or liquidation, and, in
 the case of any such proceeding or petition instituted or presented against
 it, such proceeding or petition is instituted or presented by a person or
 entity not described in paragraph (d) above and:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) 

 	
 results in a judgment of insolvency or
 bankruptcy or the entry of an order for relief or the making of an order for
 its winding up or liquidation; or

 

7

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii) 

 	
 is not dismissed, discharged, stayed or
 restrained in each case within 30 days of the institution or presentation
 thereof;

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 has exercised in respect of it one or more
 of the stabilisation powers pursuant to Part 1 of the Banking Act 2009 and/or
 has instituted against it a bank insolvency proceeding pursuant to Part 2 of
 the Banking Act 2009 or a bank administration proceeding pursuant to Part 3
 of the Banking Act 2009;

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 has a resolution passed for its winding up,
 official management or liquidation (other than pursuant to a consolidation,
 amalgamation or merger);

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 seeks or becomes subject to the appointment
 of an administrator, provisional liquidator, conservator, receiver, trustee,
 custodian or other similar official for it or for all or substantially all
 its assets;

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 has a secured party take possession of all
 or substantially all its assets or has a distress, execution, attachment,
 sequestration or other legal process levied, enforced or sued on or against
 all or substantially all its assets and such secured party maintains
 possession, or any such process is not dismissed, discharged, stayed or
 restrained, in each case within 30 days thereafter;

 
	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 causes or is subject to any event with
 respect to it which, under the applicable laws of any jurisdiction, has an
 analogous effect to any of the events specified in paragraphs (a) to (i)
 above; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 takes any action in furtherance of, or
 indicating its consent to, approval of, or acquiescence in, any of the
 foregoing acts.

 
	
  

 	
  

 	
  

 
	
  

 	
 Insurance Notice
 means a notice of assignment in the form scheduled to the Deed of Covenant or
 in another approved form.

 
	
  

 	
  

 	
  

 
	
  

 	
 Insurances
 means, in relation to the Ship:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 all policies and contracts of insurance;
 and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 all entries in a protection and indemnity
 or war risks or other mutual insurance association in the name of the Ship’s
 owner or the joint names of its owner and any other person in respect of or
 in connection with the Ship and/or its owner’s Earnings from the Ship and
 includes all benefits thereof (including the right to receive claims and to
 return of premiums).

 
	
  

 	
  

 	
  

 
	
  

 	
 Interbank Market
 means the London interbank market.

 
	
  

 	
  

 	
  

 
	
  

 	
 Interest Period
 means, in relation to the Loan, each period determined in accordance with
 clause 9 (Interest Periods)
 and, in relation to an Unpaid Sum, each period determined in accordance with
 clause 8.3 (Default interest).

 
	
  

 	
  

 	
  

 
	
  

 	
 Last Availability
 Date means 16 February 2011 (or such
 later date as may be approved by the Lenders).

 
	
  

 	
  

 
	
  

 	
 Legal Reservations
 means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 the principle that equitable remedies may
 be granted or refused at the discretion of a court and the limitation of
 enforcement by laws relating to insolvency, reorganisation and other laws
 generally affecting the rights of creditors;

 

8

	
  

 	
  

 	
  

 
	
  

 	
 (b) 

 	
 the time barring of claims under the
 Limitation Acts, the possibility that an undertaking to assume liability for,
 or indemnify a person against, non-payment of UK stamp duty may be void and
 defences of set-off or counterclaim; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 similar principles, rights and defences
 under the laws of any Relevant Jurisdiction.

 
	
  

 	
  

 
	
  

 	
 Lender
 means:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 any Original Lender; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any bank, financial institution, trust,
 fund or other entity which has become a Party in accordance with clause 29 (Changes to the Lenders),

 
	
  

 	
  

 
	
  

 	
 which in each case has not ceased to be a
 Party in accordance with the terms of this Agreement.

 
	
  

 	
  

 
	
  

 	
 LIBOR
 means, in relation to the Loan or any part of it or any Unpaid Sum:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
 the applicable Screen Rate; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 (if no Screen Rate is available for the
 relevant Interest Period) the arithmetic mean of the rates (rounded upwards
 to four decimal places) as supplied to the Agent at its request quoted by the
 Reference Banks to leading banks in the Interbank Market,

 
	
  

 	
  

 
	
  

 	
 as of 11:00 a.m. on the Quotation Day for
 the offering of deposits in dollars for a period comparable to the Interest
 Period for the Loan or relevant part of it or Unpaid Sum.

 
	
  

 	
  

 
	
  

 	
 Loan
 means the loan made or to be made under the Facility or the principal amount
 outstanding for the time being of that loan.

 
	
  

 	
  

 
	
  

 	
 Loss Payable
 Clauses means the provisions
 concerning payment of claims under the Ship’s Insurances in the form
 scheduled to the Deed of Covenant or in another approved form.

 
	
  

 	
  

 
	
  

 	
 Major Casualty
 means any casualty to a vessel for which the total insurance claim, inclusive
 of any deductible, exceeds or may exceed the Major Casualty Amount.

 
	
  

 	
  

 
	
  

 	
 Major Casualty
 Amount means $1,000,000 (or the
 equivalent in any other currency).

 
	
  

 	
  

 
	
  

 	
 Majority Lenders
 means a Lender or Lenders whose Commitments aggregate more than 662⁄3% of the
 Total Commitments (or, if the Total Commitments have been reduced to zero,
 aggregated more than 662⁄3% of the Total Commitments immediately prior to the
 reduction).

 
	
  

 	
  

 
	
  

 	
 Manager
 means Ceres LNG Services Ltd. or another manager appointed by the Borrower in
 accordance with clause 21.3 (Manager).

 
	
  

 	
  

 
	
  

 	
 Manager’s
 Undertaking means an undertaking by any
 manager of the Ship to the Security Agent in the agreed form pursuant to
 clause 21.3 (Manager).

 
	
  

 	
  

 
	
  

 	
 Mandatory Cost
 means the percentage rate per annum calculated by the Agent in accordance
 with Schedule 6 (Mandatory Cost formulae).

 
	
  

 	
  

 
	
  

 	
 Margin
 means 2.75% per annum.

 
	
  

 	
  

 
	
  

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

 

9

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the business, operations, property, condition (financial or
 otherwise) or prospects of any of the Obligors or the Group taken as a whole,
 which prejudices the ability of an Obligor to perform its obligations under
 the Finance Documents; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the validity or enforceability of, or the effectiveness or ranking of
 any Security Interest granted or purporting 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Minimum Value means: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 from the date of this Agreement up to (but not including) the date of
 delivery of the Utilisation Request in respect of the Delivery Commitment,
 the amount in dollars which is at any relevant time 120% of the aggregate
 outstanding amount of the Loan; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 from the date of delivery of the Utilisation Request in respect of
 the Delivery Commitment, the amount in dollars which is at any relevant time
 120% of the Available Facility. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mortgage means a first mortgage of the
 Ship in the agreed form by the Borrower in favour of the Security Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Mortgage Period means the period from the date
 the Mortgage is executed and registered until the date such Mortgage is
 released and discharged or the Total Loss Repayment Date. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Obligors means the parties to the Finance
 Documents (other than Finance Parties and the manager of the Ship) and Obligor means any one of them. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Original Financial Statements means: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the audited consolidated financial statements of the Group for its
 financial year ended 31 December 2008; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the audited financial statements of the Borrower, each of the
 Guarantors and the Counter Guarantor Subsidiary for its financial year ended
 31 December 2008. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Original Obligor means each party to this
 Agreement and the Original Security Documents (other than a Finance Party and
 the Manager). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Original Security Documents means: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Pre-Delivery Security Assignment;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the Counter Guarantee and the Guarantee;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Mortgage;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Deed of Covenant;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 the Share Security;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 the Charter Assignment;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 the Account Security; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 any Manager’s Undertaking if required under clause 21.3 (Manager). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Participating Member State means any member state of the
 European Community that adopts or has adopted the euro as its lawful currency
 in accordance with legislation of the European Community relating to Economic
 and Monetary Union. 

 

10

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Party means a party to this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Permitted Maritime Liens means, in relation to a vessel:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 unless a Default is continuing, any ship repairer’s or outfitter’s
 possessory lien in respect of such vessel for an amount not exceeding the
 Major Casualty Amount; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any lien on such vessel for master’s, officer’s or crew’s wages
 outstanding in the ordinary course of its trading; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 liens for master’s disbursements incurred in the ordinary course of
 business and any other lien arising by operation of law in the ordinary
 course of the business, repair or maintenance of the Ship, and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any lien on such vessel for salvage. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Permitted Security Interests means, in relation to the Ship,
 any Security Interest over it which is:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 granted under the Existing Loan Agreement (up until the first
 Utilisation Date) and by the Finance Documents; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a Permitted Maritime Lien; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any Security Interest created in favour of a claimant or defendant in
 any proceedings or arbitration as security for costs and expenses while the
 Borrower is actively pursuing a claim or defending such proceedings or
 arbitration in good faith; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any Security Interests arising by operation of law in respect of
 taxes which are not overdue for payment or in respect of taxes being
 contested in good faith by appropriate steps; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 approved by the Majority Lenders 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 PROVIDED that in the case of (c) and (d) above the relevant liens (or
 any claim relating thereto) are, in the reasonable opinion of the Agent,
 covered by insurance or, as the case may be, appropriate reserves held with
 the Account Bank in an Account acceptable to the Agent. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pollutant means and includes crude oil and
 its products, any other polluting, toxic or hazardous substance and any other
 substance whose release into the environment is regulated or penalised by
 Environmental Laws.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pre-Delivery Available Facility means, at any relevant time, the
 Pre-Delivery Commitment then available for borrowing under this Agreement in
 accordance with clause 2.3 (Pre-Delivery
 Available Facility).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pre-Delivery Commitment means the amount specified in
 Schedule 2 (Ship information),
 as cancelled or reduced pursuant to any relevant provision of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Pre-Delivery Security Assignment means an assignment of the
 Building Contract and the Refund Guarantee by the Borrower in favour of the
 Security Agent in the agreed form.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Price means the aggregate purchase
 price of the Ship, comprising (i) the Contract Price payable under the
 Building Contract and (ii) the transfer price paid to original buyer upon
 novation of the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Quotation Day means, in relation to any period
 for which an interest rate is to be determined, two Business Days before the
 first day of that period unless market practice differs in the 

 

11

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Interbank Market for a currency, in which case the Quotation Day for
 that currency shall be determined by the Agent in accordance with market
 practice in the Interbank Market (and if quotations would normally be given
 by leading banks in the Interbank Market on more than one day, the Quotation
 Day will be the last of those days). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Receiver means a receiver or a receiver
 and manager or an administrative receiver appointed in relation to the whole
 or any part of any Charged Property under any relevant Security Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Reference Banks means the principal offices in
 London, Athens and Zurich respectively of DnB NOR Bank ASA, National Bank of
 Greece S.A. and UBS AG or such other banks as may be appointed by the Agent
 with the consent of the Borrower. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Refund Guarantee means the guarantee details of
 which are specified in Schedule 2 (Ship
 information) issued by the Refund Guarantor in respect of the
 Builder’s obligations under the Building Contract and any further guarantee
 to be issued by the Refund Guarantor in respect of such obligations. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Refund Guarantor means the refund guarantor
 specified in Schedule 2 (Ship information).
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Registry means such registrar,
 commissioner or representative of the relevant Flag State who is duly
 authorised and empowered to register the Ship, the Borrower’s title to the Ship
 and the Mortgage under the laws of its Flag State. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Relevant Jurisdiction means, in relation to an Obligor:
 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 its jurisdiction of incorporation; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any jurisdiction where any Charged Property owned by it is situated; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any jurisdiction where it conducts its business; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Repayment Date means: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the First Repayment Date; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 each of the dates falling at three monthly intervals thereafter up to
 but not including the Final Repayment Date; and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Final Repayment Date. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Repeating Representations means each of the representations
 and warranties set out in clauses 17.1 (Status)
 to 17.10 (Ranking and effectiveness of
 Security Documents). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Requisition Compensation means any compensation paid or
 payable by a government entity for the requisition for title, confiscation or
 compulsory acquisition of the Ship. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Reserve Account means any Account designated as a
 “Reserve Account” under clause
 26 (Bank accounts). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Retention Account means any Account designated as a
 “Retention Account” under clause
 26 (Bank accounts). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Revenue Account means any Account designated as a
 “Revenue Account” under clause
 26 (Bank accounts). 

 

12

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Screen Rate means the British Bankers
 Association Interest Settlement Rate for dollars and the relevant period
 displayed on the appropriate page of the Reuters screen. If the agreed page
 is replaced or service ceases to be available, the Agent may specify another
 page or service displaying the appropriate rate after consultation with the
 Borrower and the Lenders. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security Agent includes any person as may be
 appointed security agent and trustee for the Lenders under this Agreement. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security Documents means: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Original Security Documents; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any other document as may after the date of this Agreement be
 executed to guarantee and/or secure any amounts owing to the Finance Parties
 under this Agreement or any other Security Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security Interest means a mortgage, charge, pledge,
 lien, assignment, trust, hypothecation or other security interest of any kind
 securing any obligation of any person or any other agreement or arrangement
 having a similar effect.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Security Value means, at any time until the Ship
 has become a Total Loss or, as the case may be, the Building Contract is
 cancelled, terminated or rescinded, the amount in dollars which, at that
 time, is the aggregate of (a) the value of the Ship (or, if less, the maximum
 amount capable of being secured by the Mortgage) or, prior to the date of
 delivery of the Utilisation Request in respect of the Delivery Commitment,
 the value of the Building Contract and (b) the value of any additional
 security then held by the Security Agent provided under clause 24 (Minimum security value). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Selection Notice means a notice substantially in
 the form set out in Schedule 5 (Selection
 Notice) given in accordance with clause 9 (Interest Periods). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Share Security means the document constituting a
 first Security Interest by its Holding Company in favour of the Security
 Agent in the agreed form in respect of all of the shares in the Borrower. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Ship means the ship (to be built by
 the Builder under the Building Contract) described in Schedule 2 (Ship information). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Ship Representations means each of the representations
 and warranties set out in clauses 17.27 (Ship
 status) and 17.28 (Ship’s
 employment). 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Spill means any spill, release or
 discharge of a Pollutant into the environment. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subsidiary of a person means any other
 person:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 directly or indirectly controlled by such person; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 of whose dividends or distributions on ordinary voting share capital
 such person is entitled to receive more than 50%. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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) and Taxation shall be construed accordingly. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total Commitments means the aggregate of the
 Commitments, being $147,500,000 at the date of this Agreement. 

 

13

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total Loss means, in relation to a vessel,
 its: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 actual, constructive, compromised or arranged total loss; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 requisition for title, confiscation or other compulsory acquisition
 by a government entity; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 hijacking, theft, condemnation, capture, seizure, arrest or detention
 for more than 30 days. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total Loss Date means, in relation to the Total
 Loss of a vessel: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in the case of an actual total loss, the date it happened or, if such
 date is not known, the date on which the vessel was last reported; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 in the case of a constructive, compromised, agreed or arranged total
 loss, the earliest of: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 the date notice of abandonment of the vessel is given to its insurers;
 or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 if the insurers do not admit such a claim, the date later determined
 by a competent court of law to have been the date on which the total loss
 happened; or 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 the date upon which a binding agreement as to such compromised or
 arranged total loss has been entered into by the vessel’s insurers; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in the case of a requisition for title, confiscation or compulsory
 acquisition, the date it happened; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 in the case of hijacking, theft, condemnation, capture, seizure,
 arrest or detention, the date 30 days after the date upon which it happened. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Total Loss Repayment Date means where the Ship has become a
 Total Loss after Delivery the earlier of: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the date 180 days after its Total Loss Date; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the date upon which insurance proceeds or Requisition Compensation
 for such Total Loss are paid by insurers or the relevant government entity. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Transfer Certificate means a certificate substantially
 in the form set out in Schedule 7 (Form of
 Transfer Certificate) or any other form agreed between the Agent
 and the Borrower or at any time after the occurrence of an Event of Default
 required by the Agent. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Transfer Date means, in relation to a transfer,
 the later of: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the proposed Transfer Date specified in the Transfer Certificate; and
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the date on which the Agent executes the Transfer Certificate. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Treasury Transaction means any derivative transaction
 entered into in connection with protection against or benefit from
 fluctuation in any rate or price. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Trust Property means, collectively: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 all moneys duly received by the Security Agent under or in respect of
 the Finance Documents; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any portion of the balance on any Account held by or charged to the
 Security Agent at any time; 

 

14

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Security Interests, guarantees, security, powers and rights given
 to the Security Agent under and pursuant to the Finance Documents including,
 without limitation, the covenants given to the Security Agent in respect of
 all obligations of any Obligor; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 all assets paid or transferred to or vested in the Security Agent or
 its agent or received or recovered by the Security Agent or its agent in connection
 with any of the Finance Documents whether from any Obligor or any other
 person; and 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 all or any part of any rights, benefits, interests and other assets
 at any time representing or deriving from any of the above, including all
 income and other sums at any time received or receivable by the Security
 Agent or its agent in respect of the same (or any part thereof). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation means the making of an Advance. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation Date means the date on which a
 Utilisation is made. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Utilisation Request means a notice substantially in
 the form set out in Schedule 4 (Utilisation
 Request). 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 VAT means value added tax as provided
 for in the Value Added Tax Act 1994 and any other tax of a similar nature and
 the analogous taxes in any other relevant jurisdictions. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1.2

 	
  

 	
 Construction 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1.2.1

 	
  

 	
 Unless a contrary indication appears, any reference in any of the
 Finance Documents to: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Sections, clauses and Schedules are to be construed as references to
 the Sections and clauses of, and the Schedules to, the relevant Finance
 Document and references to a Finance Document include its Schedules; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a Finance Document or
 any other agreement or instrument is a reference to that Finance Document or
 other agreement or instrument as it may from time to time be amended,
 restated, novated or replaced, however fundamentally; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 words importing the plural shall include the singular and vice versa;
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 a time of day are to London time; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 any person includes its successors in title, permitted assignees or
 transferees; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 the knowledge, awareness and/or beliefs (and similar expressions) of
 any Obligor shall be construed so as to mean the knowledge, awareness and
 beliefs of the director and officers of such Obligor, having made due and
 careful enquiry; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 agreed form means: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 where a Finance Document has already been executed by the Agent or
 the Security Agent, such Finance Document in its executed form;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 prior to the execution of a Finance Document, the form of such
 Finance Document separately agreed in writing between the Agent and the
 Borrower, whether before or after the date of this Agreement, as the form in
 which that Finance Document is to be executed or another form approved at the
 request of the Borrower;

 

15

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 approved by the Majority Lenders means approved in writing by the
 Agent acting on the instructions of the Majority Lenders (on such conditions
 as they may respectively impose) and otherwise approved means approved in writing by the Agent acting on
 the instructions of all of the Lenders (on such conditions as the Agent may
 impose) and approval and approve shall be construed accordingly; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 assets includes present and future
 properties, revenues and rights of every description; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (j)

 	
 an authorisation means
 any authorisation, consent, concession, approval, resolution, licence,
 exemption, filing, notarisation or registration; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (k)

 	
 charter commitment means, in relation to a vessel,
 any charter or contract for the use, employment or operation of that vessel
 or the carriage of people and/or cargo or the provision of services by or
 from it and includes any agreement for pooling or sharing income derived from
 any such charter or contract; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (I)

 	
 control of an entity means: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 the power (whether by way of ownership of shares, proxy, contract,
 agency or otherwise) to: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (A)

 	
 cast, or control the casting of, more than 50% of the maximum number
 of votes that might be cast at a general meeting of that entity; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (B)

 	
 appoint or remove all, or the majority, of the directors or other
 equivalent officers of that entity; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 (C)

 	
 give directions with respect to the operating and financial policies
 of that entity with which the directors or other equivalent officers of that
 entity are obliged to comply; and/or

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 the holding beneficially of more than 50% of the issued share capital
 of that entity (excluding any part of that issued share capital that carries
 no right to participate beyond a specified amount in a distribution of either
 profits or capital);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 and controlled shall be
 construed accordingly; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (m)

 	
 the term disposal or dispose means a sale, transfer or other
 disposal (including by way of lease or loan but not including by way of loan
 of money) by a person of all or part of its assets, whether by one
 transaction or a series of transactions and whether at the same time or over
 a period of time, but not the creation of a Security Interest;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (n)

 	
 dollar/$ means the lawful currency of the
 United States of America;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (o)

 	
 the equivalent of an
 amount specified in a particular currency (the specified currency amount) shall be construed as a reference
 to the amount of the other relevant currency which can be purchased with the
 specified currency amount in the London foreign exchange market at or about
 11:00 a.m. on the date the calculation falls to be made for spot delivery, as
 conclusively determined by the Agent (with the relevant exchange rate of any
 such purchase being the Agent’s spot rate
 of exchange);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (p)

 	
 a government entity
 means any government, state or agency of a state;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (q)

 	
 a guarantee means any
 guarantee, letter of credit, bond, indemnity or similar assurance against
 loss, or any obligation, direct or indirect, actual or contingent, to
 purchase or assume any indebtedness of any person or to make an investment in
 or loan to any person or to purchase assets of any person where, in each
 case, such obligation is

 

16

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 assumed in order to maintain or assist the ability of such person to
 meet its indebtedness; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (r)

 	
 indebtedness includes any obligation (whether
 incurred as principal or as surety) for the payment or repayment of money,
 whether present or future, actual or contingent;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (s)

 	
 month means a period starting on one
 day in a calendar month and ending on the numerically corresponding day in
 the next calendar month or the calendar month in which it is to end, except
 that:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 if the numerically corresponding day is not a Business Day, that
 period shall end on the next Business Day in that month (if there is one) or
 on the immediately preceding Business Day (if there is not); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 if there is no numerically corresponding day in that month, that
 period shall end on the last Business Day in that month,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 and the above rules in paragraphs (i) to (ii) will only apply to the
 last month of any period; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (t)

 	
 an obligation means any
 duty, obligation or liability of any kind;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (u)

 	
 something being in the ordinary
 course of business of a person means something that is in the
 ordinary course of that person’s current day-to-day operational business (and
 not merely anything which that person is entitled to do under its
 Constitutional Documents);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
 pay, prepay or repay in clause 27 (Business
 restrictions) includes by way of set-off, combination of accounts
 or otherwise;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (w)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (x)

 	
 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 regulatory, self-regulatory or other authority or
 organisation and includes (without limitation) any Basel 2 Regulation;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (y)

 	
 right means any right, privilege, power
 or remedy, any proprietary interest in any asset and any other interest or
 remedy of any kind, whether actual or contingent, present or future, arising
 under contract or law, or in equity;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (z)

 	
 trustee, fiduciary and fiduciary
 duty has in each case the meaning given to such term under applicable
 law;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (aa)

 	
 (i) the winding up, dissolution, or administration of person or (ii) a receiver or administrative receiver or administrator
 in the context of insolvency proceedings or security enforcement actions in
 respect of a person shall be construed so as to include any equivalent or
 analogous proceedings or any equivalent and analogous person or appointee
 (respectively) under the law of the jurisdiction in which such person is
 established or incorporated or any jurisdiction in which such person carries
 on business including (in respect of proceedings) the seeking or occurrences
 of liquidation, winding-up, reorganisation, dissolution, administration,
 arrangement, adjustment, protection or relief of debtors;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (bb)

 	
 wholly-owned subsidiary has the meaning given to that
 term in section 736 of the Companies Act 1985; and

 

17

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (cc)

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

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.2

 	
  

 	
 Where in this Agreement a provision includes a monetary reference level
 in one currency, unless a contrary indication appears, such reference level
 is intended to apply equally to its equivalent in other currencies as of the
 relevant time for the purposes of applying such reference level to any other
 currencies. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.3

 	
  

 	
 Section, clause and Schedule headings are for ease of reference only.
 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.4

 	
  

 	
 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.5

 	
  

 	
 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2.6

 	
  

 	
 Unless a contrary indication appears, in the event of any
 inconsistency between the terms of this Agreement and the terms of any other
 Finance Document when dealing with the same or similar subject matter, the
 terms of this Agreement shall prevail. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3

 	
  

 	
 Third party rights 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3.1

 	
  

 	
 Unless expressly provided to the contrary in a Finance Document for
 the benefit of a Finance Party or another Indemnified Person, a person who is
 not a party to a Finance Document has no right under the Contracts (Rights of
 Third Parties) Act 1999 (the Third Parties
 Act) to enforce or to enjoy the benefit of any term of the
 relevant Finance Document. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3.2

 	
  

 	
 Any Finance Document may be rescinded or varied by the parties to it
 without the consent of any person who is not a party to it (unless otherwise
 provided by this Agreement). 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3.3

 	
  

 	
 An Indemnified Person who is not a party to a Finance Document may
 only enforce its rights under that Finance Document through a Finance Party
 and if and to the extent and in such manner as the Finance Party may
 determine. 

 
	
  

 	
  

 	
  

 	
  

 
	
 1.4

 	
  

 	
 Finance Documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where any other Finance Document provides that this clause 1.4 shall
 apply to that Finance Document, any other provision of this Agreement which,
 by its terms, purports to apply to all or any of the Finance Documents and/or
 any Obligor shall apply to that Finance Document as if set out in it but with
 all necessary changes.

 
	
  

 	
  

 	
  

 	
  

 
	
 1.5

 	
  

 	
 Conflict of documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The terms of the Finance Documents (other than as relates to the
 creation and/or perfection of security) are subject to the terms of this
 Agreement and, in the event of any conflict between any provision of this
 Agreement and any provision of any Finance Document (other than in relation
 to the creation and/or perfection of security) the provisions of this
 Agreement shall prevail.

 

18

SECTION 2 - THE FACILITY

	
 

	
 

	
 

	
2

	
 

	
The Facility

	
 

	
 

	
 

	
2.1

	
 

	
The Facility 

	
 

	
 

	
 

	
 

	
 

	
Subject
to the terms of this Agreement, the Lenders make available to the Borrower a
term loan facility in an aggregate amount equal to the Total Commitments.

	
 

	
 

	
 

	
2.2 

	
 

	
Finance Parties’ rights and obligations  

	
 

	
 

	
 

	
2.2.1

	
 

	
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. 

	
 

	
 

	
 

	
2.2.2

	
 

	
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 an Obligor shall be a separate and
independent debt. 

	
 

	
 

	
 

	
2.2.3

	
 

	
A
Finance Party may, except as otherwise stated in the Finance Documents
(including clauses 31.25 (All enforcement
action through the Security Agent)) and 32.2 (Finance Parties acting together),
separately enforce its rights under the Finance Documents. 

	
 

	
 

	
 

	
2.3

	
 

	
Pre-Delivery
Available Facility 

	
 

	
 

	
 

	
 

	
 

	
The
Pre-Delivery Commitment shall only be available for borrowing under the
Facility for the purpose of refinancing the amounts previously paid by the
Borrower under the Building Contract (save for an amount of $18,122,710
representing the Borrower’s equity in the Ship).

	
 

	
 

	
 

	
2.4

	
 

	
Delay in the
Delivery Date 

	
 

	
 

	
 

	
 

	
 

	
If the
Delivery Date shall be delayed to (a) a date between 1 September 2010 and 30
November 2010 the Delivery Commitment and the Total Commitments shall be
reduced by $2,912,549 or (b) a date between 1 December 2010 and 16 February
2011 the Delivery Commitment and the Total Commitments shall be reduced by
$5,868,787.

	
 

	
 

	
 

	
3

	
 

	
Purpose 

	
 

	
 

	
 

	
3.1

	
 

	
Purpose 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower shall apply all amounts borrowed under the Facility in accordance
with this clause 3.

	
 

	
 

	
 

	
3.2

	
 

	
Use before
Delivery 

	
 

	
 

	
 

	
 

	
 

	
The Pre-Delivery
Commitment shall initially be made available solely for the purpose of
assisting the Borrower to finance payment of the amounts described in clause
2.3 (Pre-Delivery Available Facility).

	
 

	
 

	
 

	
3.3

	
 

	
Use on Delivery

	
 

	
 

	
 

	
 

	
 

	
The
Delivery Commitment shall initially be made available solely for the purpose
of assisting the Borrower to finance the Delivery Instalment for the Ship in
accordance with Article VII of the Building Contract.

19

	
 

	
 

	
 

	
 

	
3.4

	
 

	
Monitoring 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
4

	
 

	
Conditions of Utilisation 

	
 

	
 

	
 

	
 

	
4.1

	
 

	
Conditions
precedent before Delivery 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
Pre-Delivery Commitment shall only become available for borrowing under this
Agreement if the Agent, or its duly authorised representative, has received
all of the documents and evidence listed in Part 1 of Schedule 3 (Conditions precedent to any Utilisation)
in form and substance satisfactory to the Agent (which shall include evidence
that such documents and evidence remain in full force and effect and
unamended).

	
 

	
 

	
 

	
 

	
4.2

	
 

	
Conditions precedent on Delivery 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
Delivery Commitment shall only become available for borrowing under this
Agreement if the Agent, or its duly authorised representative, has received
all of the documents and evidence listed in Part 2 of Schedule 3 (Conditions precedent on Delivery) in
form and substance satisfactory to the Agent.

	
 

	
 

	
 

	
 

	
4.3

	
 

	
Notice to Lenders 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
Agent shall notify the Borrower and the Lenders promptly upon receiving and
being satisfied with all of the documents and evidence delivered to it under
this clause 4.

	
 

	
 

	
 

	
 

	
4.4

	
 

	
Further conditions precedent 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
Lenders will only be obliged to comply with clause 5.4 (Lenders’ participation) if on the date
of the Utilisation Request and on the proposed Utilisation Date:

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
no Default is continuing or
would result from the proposed Utilisation;

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
the Repeating Representations
and, in relation to the first Utilisation, all of the other representations
set out in clause 17 (Representations)
(except the Ship Representations), are true; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
in relation to the Utilisation
of the Delivery Commitment, the Ship Representations are true.

	
 

	
 

	
 

	
 

	
4.5

	
 

	
Waiver of conditions precedent 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
conditions in this clause 4 are inserted solely for the benefit of the
Finance Parties and may be waived on their behalf in whole or in part and
with or without conditions by the Agent acting on the instructions of the
Lenders.

20

SECTION 3 - UTILISATION

	
 

	
 

	
 

	
 

	
 

	
5

	
 

	
Utilisation 

	
 

	
 

	
 

	
5.1

	
 

	
Delivery of a
Utilisation Request 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower may utilise the Facility by delivery to the Agent of a duly
completed Utilisation Request not later than 11:00 a.m. three Business Days
before the proposed Utilisation Date. 

	
 

	
 

	
 

	
5.2

	
 

	
Completion of a
Utilisation Request 

	
 

	
 

	
 

	
5.2.1

	
 

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
the proposed Utilisation Date is
a Business Day falling (i) (in the case of the Pre-Delivery Commitment)
within 30 days of the date of this Agreement and (ii) (in the case of the
Delivery Commitment) not later than 200 days after the scheduled delivery
date under the Building Contract;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
the currency and amount of the
Utilisation comply with clause 5.3 (Currency
and amount);

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
the proposed Interest Period
complies with clause 9 (Interest Periods);
and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
it identifies the purpose for
the Utilisation and that purpose complies with clause 3 (Purpose).

	
 

	
 

	
 

	
 

	
 

	
5.2.2

	
 

	
Only one Advance may be
requested in each Utilisation Request. 

	
 

	
 

	
 

	
 

	
5.3

	
 

	
Currency and
amount 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
currency specified in a Utilisation Request must be dollars and the amount of
the proposed Advance must be the lesser of (a) $80,000,000 in respect of the
Pre-Delivery Commitment and $67,500,000 in respect of the Delivery Commitment
or, if less, the amount of the Available Facility less the amount of the
outstanding Loan or (b) such amount as the Agent shall determine to be equal
to 65% of the Security Value as of the date of such Utilisation Request. 

	
 

	
 

	
 

	
5.4

	
 

	
Lenders’
participation 

	
 

	
 

	
 

	
5.4.1

	
 

	
If the
conditions set out in this Agreement have been met, each Lender shall make
its participation in each Advance available by the Utilisation Date through
its Facility Office. 

	
 

	
 

	
 

	
5.4.2

	
 

	
The
amount of each Lender’s participation in the Advance will be equal to the
proportion borne by its Commitment to the Total Commitments immediately prior
to making the Advance. 

	
 

	
 

	
 

	
 

	
5.4.3

	
 

	
The
Agent shall promptly notify each Lender of the amount of the Advance and the
amount of its participation in the Advance. 

	
 

	
 

	
 

	
 

	
5.4.4

	
 

	
The
Agent shall pay all amounts received by it in respect of each Advance (and
its own participation in it, if any) to the Borrower or for its account in
accordance with the instructions contained in the Utilisation Request. 

	
 

	
 

	
 

	
 

	
5.5

	
 

	
Condition
subsequent 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower shall within three Business Days following the first Utilisation
provide duly executed acknowledgements of the notices of assignment as
required by the Pre-Delivery Security Assignment. 

21

	
 

	
 

	
 

	
 

	
 

	
REPAYMENT,
PREPAYMENT AND CANCELLATION

	
 

	
 

	
 

	
6

	
 

	
Repayment

	
 

	
 

	
 

	
6.1

	
 

	
Repayment 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower shall on each Repayment Date repay such part of the Loan as is
required to be repaid by clause 6.2 (Scheduled
repayment of Facility).

	
 

	
 

	
 

	
6.2

	
 

	
Scheduled
repayment of Facility 

	
 

	
 

	
 

	
 

	
 

	
To the
extent not previously reduced, the Loan shall be repaid by instalments on
each Repayment Date by the amount specified below (as revised by clause 6.3):

	
 

	
 

	
 

	
Repayment Date

	
 

	
Amount $

	
 

	
 

	
 

	
First

	
 

	
2,912,549

	
 

	
 

	
 

	
Second

	
 

	
2,956,238

	
 

	
 

	
 

	
Third

	
 

	
3,000,581

	
 

	
 

	
 

	
Fourth

	
 

	
3,045,590

	
 

	
 

	
 

	
Fifth

	
 

	
3,091,274

	
 

	
 

	
 

	
Sixth

	
 

	
3,137,643

	
 

	
 

	
 

	
Seventh

	
 

	
3,184,707

	
 

	
 

	
 

	
Eighth

	
 

	
3,232,478

	
 

	
 

	
 

	
Ninth

	
 

	
3,280,965

	
 

	
 

	
 

	
Tenth

	
 

	
3,330,180

	
 

	
 

	
 

	
Eleventh

	
 

	
3,380,132

	
 

	
 

	
 

	
Twelfth

	
 

	
3,430,834

	
 

	
 

	
 

	
Thirteenth

	
 

	
3,482,297

	
 

	
 

	
 

	
Fourteenth

	
 

	
106,034,531

	
 

	
 

	
 

	
Total

	
 

	
147,500,000

	
 

	
 

	
 

	
 

	
 

	
If, with
approval, the Delivery Date shall be delayed (a) to a date between 1
September 2010 and 30 November 2010 the First Repayment Date shall be
excluded or (b) to a date between 1 December 2010 and 16 February 2011 the
First and Second Repayment Date shall be excluded.

	
 

	
 

	
 

	
 

	
 

	
On the
Final Repayment Date (without prejudice to any other provision of this
Agreement), the Loan shall be repaid in full.

	
 

	
 

	
 

	
6.3

	
 

	
Adjustment of
scheduled repayments 

	
 

	
 

	
 

	
 

	
 

	
If the
Total Commitments have been partially reduced under this Agreement and/or any
part of the Loan is prepaid (other than under clause 6.2) before any
Repayment Date, the amount of the instalment by which the Loan shall be
repaid under clause 6.2 on any such Repayment

22

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date (as
reduced by any earlier operation of this clause 6.3) shall be reduced pro
rata to such reduction in the Total Commitments (except in the case of a
prepayment under clause 7.4 (Fixed Rate
Differential Amount Prepayment) where the reduction shall be
treated as reducing the instalments in inverse chronological order by its
aggregate amount).

	
 

	
 

	
 

	
 

	
7

	
 

	
Illegality, prepayment and cancellation 

	
 

	
 

	
 

	
7.1

	
 

	
Illegality 

	
 

	
 

	
 

	
 

	
 

	
If it
becomes unlawful in any applicable jurisdiction for a Lender to perform any
of its obligations as contemplated by this Agreement or to fund or maintain
its participation in the Loan: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
that Lender shall promptly
notify the Agent upon becoming aware of that event;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
upon the Agent notifying the
Borrower, the Commitment of that Lender will be immediately cancelled; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
the Borrower shall repay that
Lender’s participation in the Loan on the last day of the Interest Period
occurring after the Agent has notified the Borrower or, if earlier, the date
specified by the Lender in the notice delivered to the Agent (being no
earlier than the last day of any applicable grace period permitted by law).

	
 

	
 

	
 

	
 

	
 

	
7.2

	
 

	
Voluntary
cancellation 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower may, if it gives the Agent not less than three Business Days’ (or
such shorter period as the Majority Lenders may agree) prior notice, cancel
the whole or any part (being a minimum amount of $1,000,000 and a multiple of
$1,000,000 of any part of the Available Facility which is undrawn at the
proposed date of cancellation. 

	
 

	
 

	
 

	
7.3

	
 

	
Voluntary
prepayment 

	
 

	
 

	
 

	
 

	
 

	
The
Borrower may, if it gives the Agent not less than three Business Days’ (or
such shorter period as the Majority Lenders may agree) prior written notice,
prepay the whole or any part of the Loan (but if in part, being an amount
that reduces the amount of the Loan by a minimum amount of $1,000,000 and
which is a multiple of $1,000,000) on the last day of an Interest Period in
respect of the amount to be prepaid. 

	
 

	
 

	
 

	
7.4

	
 

	
Fixed Rate
Differential Amount Prepayment 

	
 

	
 

	
 

	
 

	
 

	
On each
Repayment Date the Borrower shall (unless otherwise approved) apply any
amount standing to the credit of the Fixed Rate Differential Account in
prepayment of the Loan. 

	
 

	
 

	
 

	
7.5

	
 

	
Right of
cancellation and prepayment in relation to a single Lender 

	
 

	
 

	
 

	
 

	
7.5.1

	
 

	
If: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
any sum payable to any Lender by
an Obligor is required to be increased under clause 12.2 (Tax gross-up); or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
any Lender claims
indemnification from the Borrower under clause 12.3 (Tax indemnity) or clause 13.1 (Increased costs),

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the
Borrower may, whilst the circumstance giving rise to the requirement or
indemnification continues, give the Agent notice of cancellation of the
Commitment of that Lender and its intention to procure the repayment of that
Lender’s participation in the Loan. 

23

	
 

	
 

	
 

	
 

	
 

	
7.5.2

	
 

	
On
receipt of a notice of cancellation referred to in clause 7.5.1 above, the
Commitment of that Lender shall immediately be reduced to zero. 

	
 

	
 

	
 

	
 

	
7.5.3

	
 

	
On the
last day of each Interest Period which ends after the Borrower has given
notice of cancellation under clause 7.5.1 above (or, if earlier, the date
specified by the Borrower in that notice), the Borrower shall repay that
Lender’s participation in the Loan. 

	
  

 
	
7.5.4

	
 

	
 

	
 

	
  

 
	
 

	
 

	
 

	
(a)

	
If any
Lender becomes a Defaulting Lender, the Borrower may, at any time whilst the Lender
continues to be a Defaulting Lender, give the Agent three Business Days’
notice of cancellation of the Commitment of that Lender.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
On the
notice referred to in paragraph (a) above becoming effective, the Commitment
of the Defaulting Lender shall immediately be reduced to zero.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
The
Agent shall as soon as practicable after receipt of a notice referred to in
paragraph (a) above, notify all the Lenders.

	
 

	
 

	
 

	
 

	
 

	
7.6

	
 

	
Total Loss 

	
 

	
 

	
 

	
 

	
 

	
On the Total Loss Repayment
Date:

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
the Total Commitments will be
reduced to zero; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
the Borrower shall prepay the
Loan.

	
 

	
 

	
 

	
 

	
7.7

	
 

	
Mandatory
pre-delivery cancellation 

	
 

	
 

	
 

	
 

	
 

	
If, prior to Delivery:

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
the Building Contract is for any
reason and by any method cancelled, terminated or rescinded; or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
a
competent court or arbitration panel decides that the Building Contract has
been validly cancelled, terminated or rescinded; or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
the Building Contract is varied
in a way prohibited by any Finance Document; or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
the
Refund Guarantee is repudiated, cancelled, rescinded or otherwise terminated
or is not or ceases to be legal, valid, binding and enforceable obligations
of the Refund Guarantor or it is or becomes unlawful for the Refund Guarantor
to perform its obligations under it PROVIDED ALWAYS THAT the Refund Guarantee
is not immediately replaced or reinstated or reconfirmed in a form and manner
and by a person in each case approved in advance by the Lenders; or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(e)

	
Delivery has not occurred by the
Last Availability Date,

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
then the
Agent may, and shall if so directed by the Lenders, by notice to the Borrower
with effect from the date 25 Business Days after the giving of such notice
(or such later date as may be approved in advance by the Majority Lenders)
cancel the Total Commitments. The Borrower shall on the date such
cancellation takes effect prepay the Loan in full.

	
 

	
 

	
 

	
7.8

	
 

	
Automatic
cancellation 

	
 

	
 

	
 

	
 

	
 

	
Any part
of the Total Commitments which has not become available by the Last
Availability Date shall be automatically cancelled at close of business in
London on the Last Availability Date.

24

	
 

	
 

	
 

	
7.9

	
 

	
Restrictions 

	
 

	
 

	
 

	
7.9.1

	
 

	
Any
notice of cancellation or prepayment given by any Party under this clause 7
shall be irrevocable and, unless a contrary indication appears in this
Agreement, shall specify the date or dates upon which the relevant
cancellation or prepayment is to be made and the amount of that cancellation
or prepayment. 

	
 

	
 

	
 

	
7.9.2

	
 

	
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 save that, in the event of a voluntary prepayment of all or any part
of the Loan (other than prepayment under clauses 7.4 (Fixed Rate Differential Amount Prepayment),
7.5.4 (Right of Cancellation in relation
to a single Lender) and 7.6 (Total
Loss)) is made prior to the third anniversary from the first
Utilisation, a prepayment fee of 1% of the amount prepaid shall be paid at
the time of such prepayment. The Borrower hereby acknowledges that the
prepayment fee payable under this clause 7.9 is a genuine pre-estimate of the
losses that would be incurred by the Lenders in these circumstances. 

	
 

	
 

	
 

	
7.9.3

	
 

	
The
Borrower may not reborrow any part of the Facility which is prepaid. 

	
 

	
 

	
 

	
7.9.4

	
 

	
The
Borrower shall not repay or prepay all or any part of the Loan or cancel all
or any part of the Commitments except at the times and in the manner
expressly provided for in this Agreement. 

	
 

	
 

	
 

	
7.9.5

	
 

	
No
amount of the Total Commitments cancelled under this Agreement may be
subsequently reinstated. 

	
 

	
 

	
 

	
7.9.6

	
 

	
If the
Agent receives a notice under this clause 7 it shall promptly forward a copy
of that notice to either the Borrower or the affected Lender, as appropriate.

	
 

	
 

	
 

	
7.9.7

	
 

	
If the
Total Commitments are partially reduced under this Agreement (other than
under clause 7.1 (Illegality)
and clause 7.5 (Right of cancellation and
prepayment in relation to a single Lender)), the Commitments of
the Lenders shall be reduced rateably. 

25

SECTION 4 - COSTS OF UTILISATION

	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
 Interest

 
	
  

 	
  

 	
  

 	
  

 
	
 8.1

 	
  

 	
 Calculation of interest

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Margin;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 LIBOR; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Mandatory Cost, if any.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.2

 	
  

 	
 Payment of interest

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay accrued interest on the Loan on the last day
 of each Interest Period (and, if the Interest Period is longer than three
 months, on the dates falling at three monthly intervals after the first day
 of the Interest Period).

 
	
  

 	
  

 	
  

 
	
 8.3

 	
  

 	
 Default interest

 
	
  

 	
  

 	
  

 	
  

 
	
 8.3.1

 	
  

 	
 If an Obligor fails to pay any amount payable by it under a Finance
 Document on its due date, interest shall accrue on the overdue amount from
 the due date up to the date of actual payment (both before and after
 judgment) at a rate which, subject to clause 8.3.2 below, is 2% higher than
 the rate which would have been payable if the overdue amount had, during the
 period of non-payment, constituted the Loan for successive Interest Periods,
 each of a duration selected by the Agent (acting reasonably). Any interest
 accruing in accordance with this clause 8.3 shall be immediately payable by
 the Obligor on demand by the Agent.

 
	
  

 	
  

 	
  

 
	
 8.3.2

 	
  

 	
 If any overdue amount consists of all or part of the Loan which
 became due on a day which was not the last day of an Interest Period relating
 to the Loan or the relevant part of it:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the first Interest Period for that overdue amount shall have a
 duration equal to the unexpired portion of the current Interest Period
 relating to the Loan; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the rate of interest applying to the overdue amount during that first
 Interest Period shall be 2% higher than the rate which would have applied if
 the overdue amount had not become due.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.3.3

 	
  

 	
 Default interest (if unpaid) arising on an overdue amount will be
 compounded with the overdue amount at the end of each Interest Period
 applicable to that overdue amount but will remain immediately due and
 payable.

 
	
  

 	
  

 	
  

 	
  

 
	
 8.4

 	
  

 	
 Notification of rates of interest

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall promptly notify the Lenders and the Borrower of the
 determination of a rate of interest under this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
 Interest
 Periods

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1

 	
  

 	
 Selection of Interest Periods

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1.1

 	
  

 	
 The Borrower may select an Interest Period for the first Advance and
 thereafter the balance of the Loan in the Utilisation Request for the first
 Advance or (if the Loan has already been borrowed) in a Selection Notice.

 

26

	
  

 	
  

 	
  

 	
  

 
	
 9.1.2

 	
  

 	
 Each Selection Notice is irrevocable and must be delivered to the
 Agent by the Borrower not later than 11:00 a.m. three Business Days before
 the last day of the then current Interest Period.

 
	
  

 	
  

 	
  

 
	
 9.1.3

 	
  

 	
 If the Borrower fails to deliver a Selection Notice to the Agent in
 accordance with clause 9.1.2, the relevant Interest Period will subject to
 clause 9.2 (Interest Periods overrunning Repayment Dates), be three
 months.

 
	
  

 	
  

 	
  

 
	
 9.1.4

 	
  

 	
 Subject to this clause 9, the Borrower may select an Interest Period
 of one, three or six months or any other period agreed between the Borrower
 and the Agent on the instructions of all the Lenders, provided that the
 Borrower may not select more than two one month Interest Periods in any one
 calendar year.

 
	
  

 	
  

 	
  

 
	
 9.1.5

 	
  

 	
 No Interest Period shall extend beyond the Final Repayment Date.

 
	
  

 	
  

 	
  

 
	
 9.1.6

 	
  

 	
 The first Interest Period for the Loan shall start on the first
 Utilisation Date, the first Interest Period for the second or any later
 Advance shall start on the relevant Utilisation Date and end on the last day
 of the then current Interest Period for the balance of the Loan and each
 subsequent Interest Period for the Loan shall start on the last day of its
 preceding Interest Period.

 
	
  

 	
  

 	
  

 
	
 9.2

 	
  

 	
 Interest Periods overrunning Repayment
 Dates

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Borrower selects an Interest Period which would overrun any
 later Repayment Date, the Loan shall be divided into parts corresponding to
 the amounts by which the Total Commitments are scheduled to be reduced under
 clause 6.2 (Scheduled repayment of Facility) on each of the Repayment
 Dates falling during such Interest Period (each of which shall have a
 separate Interest Period ending on the relevant Repayment Date) and to the
 balance of the Loan (which shall have the Interest Period selected by the
 Borrower).

 
	
  

 	
  

 	
  

 
	
 9.3

 	
  

 	
 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).

 
	
  

 	
  

 	
  

 
	
 10

 	
  

 	
 Changes
 to the calculation of interest

 
	
  

 	
  

 	
  

 
	
 10.1

 	
  

 	
 Absence of quotations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to clause 10.2 (Market disruption), if LIBOR is to be
 determined by reference to the Reference Banks but a Reference Bank does not
 supply a quotation by 11:00 a.m. on the Quotation Day, the applicable LIBOR
 shall be determined on the basis of the quotations of the remaining Reference
 Banks.

 
	
  

 	
  

 	
  

 
	
 10.2

 	
  

 	
 Market disruption

 
	
  

 	
  

 	
  

 
	
 10.2.1

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Margin;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the rate notified to the Agent by that Lender as soon as practicable
 and in any event before 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 the Loan from
 whatever source it may reasonably select; and

 

27

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Mandatory Cost, if any, applicable to that Lender’s participation
 in the Loan.

 
	
  

 	
  

 	
  

 	
  

 
	
 10.2.2

 	
  

 	
 In this Agreement “Market Disruption Event” means that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 at or about noon 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 Agent to determine LIBOR for the relevant
 Interest Period; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 before close of business in London on the Quotation Day for the
 relevant Interest Period, the Agent receives notifications from a Lender or
 Lenders (whose participations in the Loan exceed 30% of the Loan) that the
 cost to it of obtaining matching deposits in the Interbank Market would be in
 excess of LIBOR.

 
	
  

 	
  

 	
  

 	
  

 
	
 10.3

 	
  

 	
 Alternative basis of interest or funding

 
	
  

 	
  

 	
  

 	
  

 
	
 10.3.1

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 10.3.2

 	
  

 	
 Any alternative basis agreed pursuant to clause 10.3.1 above shall,
 with the prior consent of all the Lenders be binding on all Parties.

 
	
  

 	
  

 	
  

 	
  

 
	
 10.4

 	
  

 	
 Break Costs

 
	
  

 	
  

 	
  

 	
  

 
	
 10.4.1

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 10.4.2

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
  

 	
 Fees

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1

 	
  

 	
 Commitment commission

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1.1

 	
  

 	
 The Borrower shall pay to the Agent (for the account of each Lender)
 a fee in dollars computed at the rate of 1.1% per annum on the undrawn
 portion of that Lender’s Commitment calculated from the date of this
 Agreement (the “start date”).

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1.2

 	
  

 	
 The Borrower shall pay the accrued commitment commission on the last
 day of the period of three months commencing on the start date, on the last
 day of each successive period of three months, on the Final Repayment Date
 and, if cancelled in full, on the cancelled amount of the relevant Lender’s
 Commitment at the time the cancellation is effective.

 
	
  

 	
  

 	
  

 	
  

 
	
 11.2

 	
  

 	
 Arrangement fee

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay to the Agent (for the distribution to the
 Lenders) an arrangement fee in the amount and at the times agreed in a Fee
 Letter.

 
	
  

 	
  

 	
  

 	
  

 
	
 11.3

 	
  

 	
 Agency fee

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay to the Agent (for its own account) an agency
 fee in the amount and at the times agreed in a Fee Letter.

 

28

SECTION
5 - ADDITIONAL PAYMENT OBLIGATIONS

	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 Tax
 gross-up and indemnities

 
	
  

 	
  

 	
  

 
	
 12.1

 	
  

 	
 Definitions

 
	
  

 	
  

 	
  

 
	
 12.1.1

 	
  

 	
 In this Agreement:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Protected Party
 means a Finance Party which is or will be subject to any liability, or
 required to make any payment, for or on account of Tax in relation to a sum
 received or receivable (or any sum deemed for the purposes of Tax to be
 received or receivable) under a Finance Document.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tax Deduction
 means a deduction or withholding for or on account of Tax from a payment
 under a Finance Document.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tax Payment
 means either the increase in a payment made by an Obligor to a Finance Party
 under clause 12.2 (Tax gross-up) or a payment under clause
 12.3 (Tax
 indemnity).

 
	
  

 	
  

 	
  

 
	
 12.1.2

 	
  

 	
 Unless a contrary indication appears, in this clause 12 a reference
 to “determines” or determined means a determination made in the absolute
 discretion of the person making the determination.

 
	
  

 	
  

 	
  

 
	
 12.2

 	
  

 	
 Tax gross-up

 
	
  

 	
  

 	
  

 
	
 12.2.1

 	
  

 	
 Each Obligor shall make all payments to be made by it under any
 Finance Document without any Tax Deduction, unless a Tax Deduction is
 required by law.

 
	
  

 	
  

 	
  

 
	
 12.2.2

 	
  

 	
 The Borrower shall, promptly upon becoming aware that an Obligor must
 make a Tax Deduction (or that there is any change in the rate or the basis of
 a Tax Deduction), notify the Agent accordingly. Similarly, a Lender shall
 notify the Agent on becoming so aware in respect of a payment payable to that
 Lender. If the Agent receives such notification from a Lender it shall notify
 the Borrower and that Obligor.

 
	
  

 	
  

 	
  

 
	
 12.2.3

 	
  

 	
 If a Tax Deduction is required by law to be made by an Obligor, the
 amount of the payment due from that Obligor under the relevant Finance
 Document shall be increased to an amount which (after making any Tax
 Deduction) leaves an amount equal to the payment which would have been due if
 no Tax Deduction had been required.

 
	
  

 	
  

 	
  

 
	
 12.2.4

 	
  

 	
 If an Obligor is required to make a Tax Deduction, that Obligor shall
 make that Tax Deduction and any payment required in connection with that Tax
 Deduction within the time allowed and in the minimum amount required by law.

 
	
  

 	
  

 	
  

 
	
 12.2.5

 	
  

 	
 Within 30 days of making either a Tax Deduction or any payment
 required in connection with that Tax Deduction, the Obligor making that Tax
 Deduction shall deliver to the Agent for the Finance Party entitled to the
 payment evidence reasonably satisfactory to that Finance Party that the Tax
 Deduction has been made or (as applicable) any appropriate payment paid to
 the relevant taxing authority.

 
	
  

 	
  

 	
  

 
	
 12.3

 	
  

 	
 Tax indemnity

 
	
  

 	
  

 	
  

 
	
 12.3.1

 	
  

 	
 The Borrower shall (within three Business Days of demand by the
 Agent) pay to a Protected Party an amount equal to the loss, liability or
 cost which that Protected Party determines will be or has been (directly or
 indirectly) suffered for or on account of Tax by that Protected Party in
 respect of a Finance Document.

 

29

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.3.2

 	
  

 	
 Clause 12.3.1 above shall not apply:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 with respect to any Tax assessed on a Finance Party:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 under the law of the jurisdiction in which that Finance Party is
 incorporated or, if different, the jurisdiction (or jurisdictions) in which
 that Finance Party is treated as resident for tax purposes; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 under the law of the jurisdiction in which that Finance Party’s
 Facility Office is located in respect of amounts received or receivable in that
 jurisdiction,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 if that Tax is imposed on or calculated by reference to the overall
 net income received or receivable (but not any sum deemed to be received or
 receivable) by that Finance Party; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to the extent a loss, liability or cost is compensated for by an
 increased payment under clause 12.2 (Tax gross-up).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.3.3

 	
  

 	
 A Protected Party making, or intending to make a claim under clause
 12.3.1 above shall promptly notify the Agent of the event which will give, or
 has given, rise to the claim, following which the Agent shall notify the
 Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.3.4

 	
  

 	
 A Protected Party shall, on receiving a payment from an Obligor under
 this clause 12.3, notify the Agent.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.4

 	
  

 	
 Stamp taxes

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall pay and, within three 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.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5

 	
  

 	
 Value added tax

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5.1

 	
  

 	
 All amounts set out, or expressed to be payable under a Finance
 Document by any party to a Finance Party which (in whole or in part)
 constitute the consideration for VAT purposes shall be deemed to be exclusive
 of any VAT which is chargeable on such supply, and accordingly, subject to
 clause 12.5.3 below, if VAT is charged on any supply made by any Finance
 Party to any party under a Finance Document, that party shall pay to the
 Finance Party (in addition to and at the same time as paying the
 consideration) an amount equal to the amount of the VAT (and such Finance
 Party shall promptly provide an appropriate VAT invoice to such party).

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5.2

 	
  

 	
 If VAT is charged on any supply made by any Finance Party (the Supplier)
 to any other Finance Party (the Recipient) under a Finance Document, and
 any party to a Finance Document (the Relevant Party) is required by the terms
 of any Finance Document to pay an amount equal to the consideration for such
 supply to the Supplier (rather than being required to reimburse the Recipient
 in respect of that consideration), the Relevant Party shall also pay to the
 Supplier (in addition to and at the same time as paying such amount) an
 amount equal to the amount of such VAT. The Recipient will promptly pay to
 the Relevant Party an amount equal to any credit or repayment from the
 relevant tax authority which it reasonably determines relates to the VAT
 charged on that supply.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.5.3

 	
  

 	
 Where a Finance Document requires any party to it to reimburse a
 Finance Party for any costs or expenses, that party shall also at the same
 time pay and indemnify the Finance Party against all VAT incurred by the
 Finance Party in respect of the costs or expenses to the extent that the
 Finance Party reasonably determines that neither it nor any other member of
 any group of which it is a member for VAT purposes is entitled to credit or
 repayment of the VAT.

 

30

	
  

 	
  

 	
  

 	
  

 
	
 13

 	
  

 	
 Increased
 Costs

 
	
  

 	
  

 	
  

 
	
 13.1

 	
  

 	
 Increased Costs

 
	
  

 	
  

 	
  

 	
  

 
	
 13.1.1

 	
  

 	
 Subject to clause 13.3 (Exceptions), the Borrower shall, within
 three Business Days of a demand by the 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 (a) the introduction of or any
 change in (or in the interpretation, administration or application of) any
 law or regulation or (b) compliance with any law or regulation in either case
 made after the date of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 13.1.2

 	
  

 	
 In this Agreement Increased Costs means:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 an additional or increased cost; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 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 Commitment or funding or performing its obligations under
 any Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
 13.2

 	
  

 	
 Increased Cost claims

 
	
  

 	
  

 	
  

 	
  

 
	
 13.2.1

 	
  

 	
 A Finance Party intending to make a claim pursuant to clause 13.1 (Increased
 costs) shall notify the Agent of the event giving rise to the
 claim, following which the Agent shall promptly notify the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
 13.2.2

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 13.3

 	
  

 	
 Exceptions

 
	
  

 	
  

 	
  

 	
  

 
	
 13.3.1

 	
  

 	
 Clause 13.1 (Increased Costs) does not apply to the
 extent any Increased Cost is:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 attributable to a Tax Deduction required by law to be made by an
 Obligor;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 compensated for by clause 12.3 (Tax indemnity) (or would have been
 compensated for under clause 12.3 (Tax indemnity) but was not so
 compensated solely because any of the exclusions in clause 12.3.2 applied);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 compensated for by the payment of the Mandatory Cost; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

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

 
	
  

 	
  

 	
  

 	
  

 
	
 13.3.2

 	
  

 	
 In this clause 13.3, a reference to a Tax Deduction has the same
 meaning given to the term in clause 12.1 (Definitions).

 
	
  

 	
  

 	
  

 	
  

 
	
 14

 	
  

 	
 Other
 indemnities

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1

 	
  

 	
 Currency indemnity

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1.1

 	
  

 	
 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

 

31

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (the First Currency) in which that Sum is payable into another
 currency (the Second Currency) for the purpose of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 making or filing a claim or proof against that Obligor; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 that Obligor shall, as an independent obligation, within three
 Business Days of demand by a Finance Party, indemnify each 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 (i) the rate of
 exchange used to convert that Sum from the First Currency into the Second
 Currency and (ii) the rate or rates of exchange available to that person at
 the time of its receipt of that Sum.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1.2

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 14.2

 	
  

 	
 Other indemnities

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall (or shall procure that another Obligor will),
 within three Business Days of demand by a Finance Party, indemnify each
 Finance Party against any cost, loss or liability incurred by that Finance
 Party as a result of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the occurrence of any Event of Default;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 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 33 (Sharing among the Finance Parties);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 funding, or making arrangements to fund, its participation in the
 Loan requested by the Borrower in a Utilisation 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; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

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

 
	
  

 	
  

 	
  

 	
  

 
	
 14.3

 	
  

 	
 Indemnity to the Agent and the Security
 Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 investigating any event which it reasonably believes is a Default;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any action taken by the Agent or any of its representatives, agents
 or contractors in connection with any powers conferred by any Security
 Document to remedy any breach of any Obligor’s obligations under the Finance
 Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.4

 	
  

 	
 Indemnity concerning security

 
	
  

 	
  

 	
  

 	
  

 
	
 14.4.1

 	
  

 	
 The Borrower shall (or shall procure that another Obligor will)
 promptly indemnify each Indemnified Person against any cost, expense, loss or
 liability incurred by it in connection with:

 

32

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the taking, holding, protection or enforcement of the Security
 Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the exercise or purported exercise of any of the rights, powers,
 discretions and remedies vested in the Security Agent and each Receiver by
 the Finance Documents or by law unless and to the extent that it was caused
 by its gross negligence or wilful misconduct;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any claim (whether relating to the environment or otherwise) made or
 asserted against the Indemnified Person which would not have arisen but for
 the execution or enforcement of one or more Finance Documents (unless and to
 the extent it is caused by the gross negligence or wilful misconduct of that
 Indemnified Person); or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any breach by any Obligor of the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.4.2

 	
  

 	
 The Security Agent may, in priority to any payment to the other
 Finance Parties, indemnify itself out of the Trust Property in respect of,
 and pay and retain, all sums necessary to give effect to the indemnity in
 this clause 14.4 and shall have a lien on the Security Documents and the
 proceeds of the enforcement of the Security Documents for all monies payable
 to it.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.5

 	
  

 	
 Exclusion of liability

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Indemnified Person will be in any way liable or responsible to any
 Obligor (whether as mortgagee in possession or otherwise) who is a Party or
 is a party to a Finance Document to which this clause applies for any loss or
 liability arising from any act, default, omission or misconduct of that
 Indemnified Person, except to the extent caused by its own gross negligence
 or wilful misconduct. Any Indemnified Person may rely on this clause 14.5
 subject to clause 1.3 (Third party rights) and the provisions
 of Third Parties Act.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.6

 	
  

 	
 Fax and email indemnity

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall indemnify each Finance Party against any cost,
 claim, loss, expense or liability together with any VAT thereon which any of
 the Finance Parties may sustain or incur as a consequence of any fax or email
 communication purporting to originate from the Borrower to the Agent or the
 Security Agent being made or delivered fraudulently or without proper
 authorisation (unless such cost, claim, loss, expense or liability is the
 direct result of the gross negligence or wilful misconduct of the relevant
 Finance Party or the Agent or the Security Agent).

 
	
  

 	
  

 	
  

 	
  

 
	
 15

 	
  

 	
 Mitigation
 by the Lenders

 
	
  

 	
  

 	
  

 	
  

 
	
 15.1

 	
  

 	
 Mitigation

 
	
  

 	
  

 	
  

 	
  

 
	
 15.1.1

 	
  

 	
 Each Finance Party shall, in consultation with the Borrower, 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 7.1 (Illegality), clause 12 (Tax
 gross-up and indemnities), clause 13 (Increased costs) or
 paragraph 3 of Schedule 6 (Mandatory Cost formulae) including (but
 not limited to) transferring its rights and obligations under the Finance
 Documents to another Affiliate or Facility Office.

 
	
  

 	
  

 	
  

 	
  

 
	
 15.1.2

 	
  

 	
 Clause 15.1.1 does not in any way limit the obligations of any
 Obligor under the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 15.2

 	
  

 	
 Limitation of liability

 
	
  

 	
  

 	
  

 	
  

 
	
 15.2.1

 	
  

 	
 The Borrower shall promptly indemnify each Finance Party for all
 costs and expenses incurred by that Finance Party as a result of steps taken
 by it under clause 15.1 (Mitigation).

 

33

	
  

 	
  

 	
  

 	
  

 
	
 15.2.2

 	
  

 	
 A Finance Party is not obliged to take any steps under clause 15.1 (Mitigation)
 if, in the opinion of that Finance Party (acting reasonably), to do so might
 be prejudicial to it.

 
	
  

 	
  

 	
  

 	
  

 
	
 16

 	
  

 	
 Costs
 and expenses

 
	
  

 	
  

 	
  

 	
  

 
	
 16.1

 	
  

 	
 Transaction expenses

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall promptly within five Business Days of demand pay
 the Agent and the Arrangers and the Security Agent the amount of all costs
 and expenses (including fees, costs and expenses of legal advisers and,
 subject to clause 23.17, insurance and other consultants and advisers)
 reasonably incurred by any of them (and by any Receiver) in connection with
 the negotiation, preparation, printing, execution, syndication, registration
 and perfection and any release, discharge or reassignment of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 this Agreement and any other documents referred to in this Agreement
 and the Original Security Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any other Finance Documents executed or proposed to be executed after
 the date of this Agreement including any executed to provide additional
 security under clause 24 (Minimum security value);or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any Security Interest expressed or intended to be granted by a
 Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
 16.2

 	
  

 	
 Amendment costs

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If an Obligor requests an amendment, waiver or consent, the Borrower
 shall, within five Business Days of demand by the Agent, reimburse the Agent
 for the amount of all costs and expenses (including fees, costs and expenses
 of legal advisers and insurance and other consultants and advisers)
 reasonably incurred by the Agent and the Security Agent (and by any Receiver)
 in responding to, evaluating, negotiating or complying with that request or
 requirement.

 
	
  

 	
  

 	
  

 	
  

 
	
 16.3

 	
  

 	
 Enforcement and preservation costs

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall within five Business Days of demand by a Finance
 Party, pay to each Finance Party the amount of all costs and expenses
 (including fees, costs and expenses of legal advisers and insurance and other
 consultants and advisers) reasonably incurred by that Finance Party in
 connection with the enforcement of, or the preservation of any rights under,
 any Finance Document and any proceedings initiated by or against any
 Indemnified Person and as a consequence of holding the Charged Property or
 enforcing those rights.

 

34

SECTION 6 - REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	
  

 	
  

 	
  

 	
  

 
	
 17

 	
  

 	
 Representations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower makes and repeats the representations and warranties set
 out in this clause 17 to each Finance Party at the times specified in clause
 17.30 (Times
 when representations are made).

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1

 	
  

 	
 Status

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1.1

 	
  

 	
 Each Obligor and the Manager is duly incorporated and validly
 existing under the laws of the jurisdiction of its incorporation as a limited
 liability company or corporation and has no centre of main interests,
 permanent establishment or place of business outside the jurisdiction in which
 it is incorporated (save as notified to the Agent) and is in compliance with
 its Constitutional Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1.2

 	
  

 	
 Each Obligor and the Manager has power and authority to carry on its
 business as it is now being conducted and to own its property and other
 assets.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.2

 	
  

 	
 Binding obligations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to the Legal Reservations, the obligations expressed to be
 assumed by each Obligor in each Finance Document, Charter Document or
 Building Contract Document to which it is, or is to be, a party are or, when
 entered into by it, will be legal, valid, binding and enforceable obligations
 and each Security Document to which an Obligor is, or will be, a party,
 creates or will create the Security Interests which that Security Document
 purports to create and those Security Interests are or will be valid and
 effective.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.3

 	
  

 	
 Power and authority

 
	
  

 	
  

 	
  

 	
  

 
	
 17.3.1

 	
  

 	
 Each Obligor has, or will have when entered into by it, power to
 enter into, perform and deliver and comply with its obligations under, and
 has taken, or will take when entered into by it, all necessary action to
 authorise its entry into, each Finance Document, Charter Document or Building
 Contract Document to which it is or will be a party.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.3.2

 	
  

 	
 No limitation on any Obligor’s powers to borrow, create security or
 give guarantees will be exceeded as a result of any transaction under, or the
 entry into of, any Finance Document, Charter Document or Building Contract
 Document to which such Obligor is, or is to be, a party, with effect on and from
 the date of the relevant Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.4

 	
  

 	
 Non-conflict

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The entry into and performance by each Obligor and the Manager of,
 and the transactions contemplated by the Finance Documents, the Charter
 Documents and the Building Contract Documents and the granting of the
 Security Interests purported to be created by the Security Documents do not
 and will not conflict with:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any law or regulation applicable to any Obligor or the Manager;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the Constitutional Documents of any Obligor or the Manager; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any agreement or other instrument binding upon any Obligor or the
 Manager or its assets or constitute a default or termination event (however
 described) under any such agreement or instrument, or 

 

35

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 result in the creation of any Security Interest (save for a Permitted
 Maritime Lien or under a Security Document) on such Obligor’s (or the
 Manager’s) assets, rights or revenues.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.5

 	
  

 	
 Validity and admissibility in evidence

 
	
  

 	
  

 	
  

 	
  

 
	
 17.5.1

 	
  

 	
 All authorisations required or desirable:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to enable each Obligor lawfully to enter into, exercise its rights
 and comply with its obligations under each Finance Document and any Charter
 Document or Building Contract Document to which it is a party;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to make each Finance Document and any Charter Document or Building
 Contract Document to which it is a party admissible in evidence in its
 Relevant Jurisdiction; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 to ensure that each of the Security Interests created under the
 Security Documents has the priority and ranking contemplated by them,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 have been obtained or effected, or as the case may be will be
 obtained or effected when entered into, and are, or as the case may be will
 be when entered into, in full force and effect except any authorisation or
 filing referred to in clause 17.12 (No filing or stamp taxes), which
 authorisation or filing will be promptly obtained or effected within any
 applicable period.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.5.2

 	
  

 	
 All authorisations necessary for the conduct of the business, trade
 and ordinary activities of each Obligor and the Manager have been obtained or
 effected and are in full force and effect if failure to obtain or effect
 those authorisations might have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.6

 	
  

 	
 Governing law and enforcement

 
	
  

 	
  

 	
  

 	
  

 
	
 17.6.1

 	
  

 	
 The choice of governing law as provided in any Finance Document and
 any Charter Document or Building Contract Document will be recognised and
 enforced in each Obligor’s Relevant Jurisdiction.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.6.2

 	
  

 	
 Any judgment obtained in England in relation to an Obligor will be
 recognised and enforced in each Obligor’s Relevant Jurisdictions.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7

 	
  

 	
 Information

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.1

 	
  

 	
 Any Information is true and accurate in all material respects at the
 time it was given or made.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.2

 	
  

 	
 Any Information contained in the Counter Guarantor Representations
 Letter is true and accurate in all material aspects at the time that the
 Repeating Representations are repeated and the words “existing ship
 financings” in the Counter Guarantor Representations Letter shall be deemed
 to mean such ship financings as exist at the time that any Repeated
 Representations are repeated in accordance with clause 17.30 (Times when
 representations are made).

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.3

 	
  

 	
 There are no facts or circumstances or any other information which
 could make the Information incomplete, untrue, inaccurate or misleading in
 any material respect.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.4

 	
  

 	
 The Information does not omit anything which could make the
 Information incomplete, untrue, inaccurate or misleading in any material
 respect.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.7.5

 	
  

 	
 All opinions, projections, forecasts or expressions of intention
 contained in the Information and the assumptions on which they are based have
 been arrived at after due and careful enquiry and consideration and were
 believed to be reasonable by the person who provided that Information as at
 the date it was given or made.

 

36

	
  

 	
  

 	
  

 
	
 17.7.6

 	
  

 	
 For the purposes of this clause 17.7, “Information” means: any
 information provided by any Obligor or the Counter Guarantor Subsidiary to
 any of the Finance Parties in connection with the Finance Documents, Charter
 Documents or Building Contract Documents or the transactions referred to in
 them including that contained in the Counter Guarantor Representations
 Letter.

 
	
  

 	
  

 	
  

 
	
 17.8

 	
  

 	
 Original Financial Statements

 
	
  

 	
  

 	
  

 
	
 17.8.1

 	
  

 	
 The Original Financial Statements were prepared in accordance with
 GAAP consistently applied.

 
	
  

 	
  

 	
  

 
	
 17.8.2

 	
  

 	
 The audited Original Financial Statements give a true and fair view
 of the financial condition and results of operations of the relevant Obligors
 and the Group (consolidated in the case of the Group) during the relevant
 financial year.

 
	
  

 	
  

 	
  

 
	
 17.8.3

 	
  

 	
 There has been no material adverse change in its assets, business or
 financial condition (or the assets, business or consolidated financial
 condition of any of the Obligors or the Group) since the date of the Original
 Financial Statements.

 
	
  

 	
  

 	
  

 
	
 17.9

 	
  

 	
 Pari passu ranking

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor’s payment obligations under the Finance Documents rank
 at least pari passu with all its other present and future unsecured and
 unsubordinated payment obligations, except for obligations mandatorily preferred
 by law applying to companies generally.

 
	
  

 	
  

 	
  

 
	
 17.10

 	
  

 	
 Ranking and effectiveness of security

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to the Legal Reservations and any filing, registration or
 notice requirements which is referred to in any legal opinion delivered to
 the Agent under clause 4.1 (Conditions precedent before delivery),
 the security created by the Security Documents has (or will have when the
 Security Documents have been executed) the priority which it is expressed to
 have in the Security Documents, the Charged Property is not subject to any
 Security Interest other than Permitted Security Interests and such security
 will constitute perfected security on the assets described in the Security
 Documents.

 
	
  

 	
  

 	
  

 
	
 17.11

 	
  

 	
 No insolvency

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No corporate action, legal proceeding or other procedure or step
 described in clause 28.8 (Insolvency proceedings) or creditors’
 process described in clause 28.9 (Creditors’ process) has been taken or,
 to the knowledge of any Obligor or the Manager, threatened in relation to an
 Obligor or the Manager or a Subsidiary of an Obligor and none of the
 circumstances described in clause 28.7 (Insolvency) applies to an Obligor or the
 Manager or a Subsidiary of an Obligor or any Finance Document and any Charter
 Document or Building Contract Document to which it is, or is to be, party.

 
	
  

 	
  

 	
  

 
	
 17.12

 	
  

 	
 No filing or stamp taxes

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Under the laws of each Obligor’s Relevant Jurisdictions it is not
 necessary that any Finance Document and any Charter Document or Building
 Contract Document to which it is, or is to be, party 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 any such Finance Document and any Charter Document or Building
 Contract Document or the transactions contemplated by the Finance Documents
 except any filing, recording or enrolling or any tax or fee payable in
 relation to any Finance Document which is referred to in any legal opinion
 delivered to the Agent under clause 4.1 (Conditions precedent before delivery)
 and which will be made or paid promptly after the date of the relevant
 Finance Document.

 

37

	
  

 	
  

 	
  

 
	
 17.13

 	
  

 	
 Deduction of Tax

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor is required to make any deduction for or on account of Tax
 from any payment it may make under any Finance Document and no other party is
 required to make any such deduction from any payment it may make under any
 Charter Document or Building Contract Document.

 
	
  

 	
  

 	
  

 
	
 17.14

 	
  

 	
 No Default

 
	
  

 	
  

 	
  

 
	
 17.14.1

 	
  

 	
 No Default is continuing or is reasonably likely to result from the
 making of any Utilisation or the entry into, the performance of, or any
 transaction contemplated by, any Finance Document and any Charter Document or
 Building Contract Document and no breach has occurred by the Borrower of any
 Charter Documents or Building Contract Document.

 
	
  

 	
  

 	
  

 
	
 17.14.2

 	
  

 	
 No other event or circumstance is outstanding which constitutes (or,
 with the expiry of a grace period, the giving of notice, the making of any
 determination or any combination of any of the foregoing, would constitute) a
 default or termination event (however described) under any other agreement or
 instrument which is binding on any Obligor or the Manager or to which any
 Obligor’s or the Manager’s assets are subject which might have a Material
 Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.15

 	
  

 	
 No proceedings pending or threatened

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No litigation, arbitration or administrative proceedings or
 investigations of, or before, any court, arbitral body or agency which, if
 adversely determined, might reasonably be expected to have a Material Adverse
 Effect have (to the best of any Obligor’s or the Manager’s knowledge and
 belief) been started or threatened against any Obligor or the Manager or any
 Subsidiary of an Obligor.

 
	
  

 	
  

 	
  

 
	
 17.16

 	
  

 	
 No breach of laws

 
	
  

 	
  

 	
  

 
	
 17.16.1

 	
  

 	
 No Obligor nor the Manager or Subsidiary of an Obligor or the Manager
 has breached any law or regulation which might have a Material Adverse
 Effect.

 
	
  

 	
  

 	
  

 
	
 17.16.2

 	
  

 	
 No labour dispute is current or, to the best of any Obligor’s or the
 Manager’s knowledge and belief, threatened against any Obligor or the Manager
 or any Subsidiary of an Obligor which may have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.17

 	
  

 	
 Environmental matters

 
	
  

 	
  

 	
  

 
	
 17.17.1

 	
  

 	
 No Environmental Law applicable to any Fleet Vessel and/or any
 Obligor or the Manager or any Subsidiary of an Obligor has been violated in a
 manner or circumstances which might have, a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.17.2

 	
  

 	
 All consents, licences and approvals required under such
 Environmental Laws have been obtained and are currently in force.

 
	
  

 	
  

 	
  

 
	
 17.17.3

 	
  

 	
 No Environmental Claim has been made or threatened or is pending
 against any Obligor or any Subsidiary of an Obligor or any Fleet Vessel where
 that claim might have a Material Adverse Effect and there has been no
 Environmental Incident which has given, or might give, rise to such a claim.

 
	
  

 	
  

 	
  

 
	
 17.18

 	
  

 	
 Taxation

 
	
  

 	
  

 	
  

 
	
 17.18.1

 	
  

 	
 No Obligor or Subsidiary of an Obligor nor the Manager is materially
 overdue in the filing of any Tax returns or overdue in the payment of any
 amount in respect of Tax.

 
	
  

 	
  

 	
  

 
	
 17.18.2

 	
  

 	
 No claims or investigations are being, or are reasonably likely to
 be, made or conducted against any Obligor or the Manager or any Subsidiary of
 an Obligor with respect to Taxes 

 

38

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 such that a liability of, or claim against, any Obligor or the
 Manager or any Subsidiary of an Obligor is reasonably likely to arise for an
 amount for which adequate reserves have not been provided in the Original
 Financial Statements and which might have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 
	
 17.18.3

 	
  

 	
 Except as advised to the Agent prior to the date of this Agreement,
 each Obligor and the Manager is resident for Tax purposes only in the
 jurisdiction of its incorporation.

 
	
  

 	
  

 	
  

 
	
 17.19

 	
  

 	
 Security and Financial Indebtedness

 
	
  

 	
  

 	
  

 
	
 17.19.1

 	
  

 	
 No Security Interest exists over all or any of the present or future
 assets of the Borrower or GasLog Carriers in breach of this Agreement, other
 than the Permitted Security Interests.

 
	
  

 	
  

 	
  

 
	
 17.19.2

 	
  

 	
 Except from the Existing Loan Agreement, neither the Borrower nor
 GasLog Carriers has any other Financial Indebtedness outstanding in breach of
 this Agreement.

 
	
  

 	
  

 	
  

 
	
 17.20

 	
  

 	
 Legal and beneficial ownership

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Both of the Borrower and GasLog Carriers is, or will be, when
 granted, the sole legal and beneficial owner of the respective assets over
 which it purports to grant a Security Interest under the Security Documents.

 
	
  

 	
  

 	
  

 
	
 17.21

 	
  

 	
 Shares

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The shares of the Borrower are fully paid and not subject to any
 option to purchase or similar rights. The Constitutional Documents of the
 Borrower do not and could not restrict or inhibit any transfer of those
 shares on creation or enforcement of the Security Documents. There are no
 agreements in force which provide for the issue or allotment of, or grant any
 person the right to call for the issue or allotment of, any share or loan
 capital of the Borrower (including any option or right of pre-emption or
 conversion).

 
	
  

 	
  

 	
  

 
	
 17.22

 	
  

 	
 Accounting Reference Date

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The accounting reference date of each Obligor is the Accounting
 Reference Date.

 

	
  

 	
  

 	
  

 	
  

 
	
 17.23

 	
  

 	
 No adverse consequences

 
	
  

 	
  

 	
  

 
	
 17.23.1

 	
  

 	
 It is not necessary under the laws of the Relevant Jurisdictions of
 any Obligor:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in order to enable any Finance Party to enforce its rights under any
 Finance Document; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 by reason of the execution of any Finance Document or the performance
 by any Obligor of its obligations under any Finance Document,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 that any Finance Party should be licensed, qualified or otherwise
 entitled to carry on business in any of such Relevant Jurisdictions.

 
	
  

 	
  

 	
  

 
	
 17.23.2

 	
  

 	
 No Finance Party is or will be deemed to be resident, domiciled or
 carrying on business in any Relevant Jurisdiction by reason only of the
 execution, performance and/or enforcement of any Finance Document.

 
	
  

 	
  

 	
  

 
	
 17.24

 	
  

 	
 Copies of documents

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The copies of the Charter Documents, the Building Contract Documents
 and the Constitutional Documents of the Obligors delivered to the Agent under
 clause 4 (Conditions
 of Utilisation) will be true, complete and accurate copies of such
 documents and include all amendments and supplements to them as at the time
 of such delivery and no other agreements or arrangements exist between any of
 the parties to any Charter Document or Building Contract 

 

39

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Document which would materially affect the transactions or
 arrangements contemplated by any Charter Document or Building Contract
 Document or modify or release the obligations of any party under that Charter
 Document or Building Contract Document.

 
	
  

 	
  

 	
  

 
	
 17.25

 	
  

 	
 No breach of any Building Contract Document
 or Charter Document

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower nor (so far as the Borrower is aware) any other person
 is in breach of any Charter Document or Building Contract Document to which
 it is a party nor has anything occurred which entitles or may entitle any party
 to any Charter Document or Building Contract Document to rescind or terminate
 it or decline to perform their obligations under it.

 
	
  

 	
  

 	
  

 
	
 17.26

 	
  

 	
 No immunity

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor or any of its assets is immune to any legal action or
 proceeding.

 
	
  

 	
  

 	
  

 
	
 17.27

 	
  

 	
 Ship status

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship will on the first day of the Mortgage Period be:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 registered provisionally in the name of the Borrower through the
 relevant Registry as a ship under the laws and flag of the relevant Flag
 State;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 operationally seaworthy and in every way fit for service;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 classed with the relevant Classification free of all requirements and
 recommendations of the relevant Classification Society; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 insured in the manner required by the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.28

 	
  

 	
 Ship’s employment

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall on the first day of the Mortgage Period:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 have been delivered, and accepted for service, under the Charter; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 be free of any charter commitment other than the Charter.

 
	
  

 	
  

 	
  

 	
  

 
	
 17.29

 	
  

 	
 Address commission

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 There are no rebates, commissions or other payments in connection
 with the Building Contract or the Charter other than those referred to in it.

 
	
  

 	
  

 	
  

 
	
 17.30

 	
  

 	
 Other Finance Arrangements

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor (acting in any capacity whatsoever) has agreed to
 cross-default provisions as part of another loan or credit agreement entered
 into with a financier which are more beneficial to that financier than those
 provisions set out in clause 28.6 (Cross-Default) other than those
 mentioned in the Counter Guarantor Representations Letter.

 
	
  

 	
  

 	
  

 
	
 17.31

 	
  

 	
 Times when representations are made

 
	
  

 	
  

 	
  

 
	
 17.31.1

 	
  

 	
 All of the representations and warranties set out in this clause 17 (other than
 Ship Representations) are deemed to be repeated on the dates of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the first Utilisation Request; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the first Utilisation.

 

40

	
  

 	
  

 	
  

 	
  

 
	
 17.31.2

 	
  

 	
 The Repeating Representations are deemed to be repeated on the dates
 of each subsequent Utilisation Request, the date of each Utilisation and the
 first day of each Interest Period.

 
	
  

 	
  

 	
  

 
	
 17.31.3

 	
  

 	
 All of the Ship Representations are deemed to be made and repeated on
 the first day of the Mortgage Period.

 
	
  

 	
  

 	
  

 
	
 17.31.4

 	
  

 	
 Each representation or warranty deemed to be made after the date of this
 Agreement shall be deemed to be made by reference to the facts and
 circumstances then existing at the date the representation or warranty is
 deemed to be made.

 
	
  

 	
  

 	
  

 
	
 18

 	
  

 	
 Information
 undertakings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The undertakings in this clause 18 remain in force during the
 Facility Period.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this clause 18:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Annual Financial Statements” means the financial statements
 for a financial year of the Group, the Borrower, each of the Guarantors, the
 Counter Guarantor and the Counter Guarantor Subsidiary delivered pursuant to
 clause 18.1.1.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Half-Yearly Financial Statements” means the financial
 statements for a financial half year of the Group, the Borrower, each of the
 Guarantors, the Counter Guarantor and the Counter Guarantor Subsidiary
 delivered pursuant to clause 18.1.2.

 
	
  

 	
  

 	
  

 
	
 18.1

 	
  

 	
 Financial statements

 
	
  

 	
  

 	
  

 
	
 18.1.1

 	
  

 	
 The Borrower shall supply to the Agent or, as the case may be, shall
 procure that the Agent is supplied with as soon as the same become available,
 but in any event within 150 days after the end of the relevant financial
 years:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the audited consolidated financial statements of the Group for that
 financial year; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the audited financial statements (consolidated if appropriate) of the
 Borrower, each of the Guarantors, the Counter Guarantor and the Counter
 Guarantor Subsidiary for that financial year.

 
	
  

 	
  

 	
  

 	
  

 
	
 18.1.2

 	
  

 	
 The Borrower shall supply to the Agent or, as the case may be, shall
 procure that the Agent is supplied with as soon as the same become available,
 but in any event within 90 days after the end of each half year of the
 relevant financial year the unaudited financial statements (consolidated if
 appropriate) of the Group, the Borrower, the Counter Guarantor Subsidiary,
 the Guarantors and the Counter Guarantor (the first such financial statements
 in respect of the Counter Guarantor being for the half year ended as of 30
 June 2010) for that financial half-year.

 
	
  

 	
  

 	
  

 
	
 18.2

 	
  

 	
 Requirements as to financial statements

 
	
  

 	
  

 	
  

 
	
 18.2.1

 	
  

 	
 The Borrower shall procure that each set of Annual Financial
 Statements and Half-Yearly Financial Statements includes a profit and loss
 account, a balance sheet and a cashflow statement and that, in addition each
 set of Annual Financial Statements shall be audited by the Auditors.

 
	
  

 	
  

 	
  

 
	
 18.2.2

 	
  

 	
 Each set of financial statements delivered pursuant to clause 18.1 (Financial
 statements) shall:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 be prepared in accordance with GAAP;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 give a true and fair view of (in the case of Annual Financial
 Statements for any financial year), or fairly represent (in other cases), the
 financial condition and 

 

41

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 operations of the Group or (as the case may be) relevant Obligor or
 (as the case may be) the Counter Guarantor Subsidiary as at the date as at
 which those financial statements were drawn up; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in the case of annual audited financial statements, not be the
 subject of any qualification in the Auditors’ opinion.

 
	
  

 	
  

 	
  

 	
  

 
	
 18.2.3

 	
  

 	
 The Borrower shall procure that each set of financial statements
 delivered pursuant to clause 18.1 (Financial statements) shall be prepared
 using GAAP, accounting practices and financial reference periods consistent
 with those applied in the preparation of the Original Financial Statements,
 unless, in relation to any set of financial statements, the Borrower notifies
 the Agent that there has been a change in GAAP or the accounting practices
 and the Auditors deliver to the Agent:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 a description of any change necessary for those financial statements
 to reflect the GAAP or accounting practices and reference periods upon which
 corresponding Original Financial Statements were prepared; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 sufficient information, in form and substance as may be reasonably
 required by the Agent, to enable the Lenders to determine whether clause 5 of
 the Counter Guarantee (Financial covenants) has been complied
 with and to make an accurate comparison between the financial position
 indicated in those financial statements and the Original Financial
 Statements.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any reference in this Agreement to any financial statements shall be
 construed as a reference to those financial statements as adjusted to reflect
 the basis upon which the Original Financial Statements were prepared.

 
	
  

 	
  

 	
  

 
	
 18.3

 	
  

 	
 Presentations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Once in every financial year, or more frequently if requested to do
 so by the Agent if the Agent reasonably suspects a Default is continuing or
 may have occurred or may occur, the Borrower shall procure that one director
 of the Counter Guarantor give a presentation to the Finance Parties about the
 on-going business and financial performance of the Group and any other matter
 which a Finance Party may reasonably request.

 
	
  

 	
  

 	
  

 
	
 18.4

 	
  

 	
 Year-end

 
	
  

 	
  

 	
  

 
	
 18.4.1

 	
  

 	
 The Borrower shall procure that each financial year-end for each
 Obligor falls on the Accounting Reference Date.

 
	
  

 	
  

 	
  

 
	
 18.4.2

 	
  

 	
 The Borrower shall procure that each accounting period ends on an
 accounting date.

 
	
  

 	
  

 	
  

 
	
 18.5

 	
  

 	
 Information: miscellaneous

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall supply to the Agent:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 at the same time as they are dispatched, copies of all material
 documents dispatched by any Obligor to its creditors generally (or any class
 of them);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 promptly upon becoming aware of them, the details of any litigation,
 arbitration or administrative proceedings which are current, threatened or pending
 against any Obligor or the Manager (subject always to any written
 confidentiality undertakings granted by the Manager to third parties from
 time to time) and which, if adversely determined, might have a Material
 Adverse Effect;

 

42

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 promptly, such information as the Agent may reasonably require about
 the Charged Property and compliance of the Obligors with the terms of any
 Security Documents; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 promptly on request, such further information regarding the financial
 condition, assets and operations of the Obligors as any Finance Party through
 the Agent may reasonably request; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 promptly, any requests made by the Charterer under clause 19 of the
 Charter.

 
	
  

 	
  

 	
  

 	
  

 
	
 18.6

 	
  

 	
 Notification of Default

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall notify the Agent of any Default (and the steps, if
 any, being taken to remedy it) promptly upon the Borrower becoming aware of
 its occurrence (unless it is aware that a notification has already been
 provided by another Obligor).

 
	
  

 	
  

 	
  

 	
  

 
	
 18.7

 	
  

 	
 Sufficient copies

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower, if so requested by the Agent, shall supply sufficient
 copies of each document to be supplied under the Finance Documents to the
 Agent to distribute to each of the Lenders.

 
	
  

 	
  

 	
  

 
	
 18.8

 	
  

 	
  “Know your customer” checks

 
	
  

 	
  

 	
  

 
	
 18.8.1

 	
  

 	
 If:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 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;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any change in the status of an Obligor or the composition of the
 shareholders of an Obligor after the date of this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 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 Agent or any Lender (or, in the case of paragraph (c)
 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 Agent or any Lender supply, or procure the supply of, such
 documentation and other evidence as is reasonably requested by the Agent (for
 itself or on behalf of any Lender) or any Lender (for itself or, in the case
 of the event described in paragraph (c) above, on behalf of any prospective
 new Lender) in order for the Agent, such Lender or, in the case of the event
 described in paragraph (c) above, any prospective new Lender to carry out and
 be satisfied with the results of all necessary “know your customer” or other
 similar checks under all applicable laws and regulations pursuant to the
 transactions contemplated in the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 18.8.2

 	
  

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

 
	
  

 	
  

 	
  

 
	
 19

 	
  

 	
 General
 undertakings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes or, as the case may be, shall procure that
 this clause 19 will be complied with throughout the Facility Period.

 

43

	
  

 	
  

 	
  

 	
  

 
	
 19.1

 	
  

 	
 Use of proceeds

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The proceeds of Utilisations will be used exclusively for the
 purposes specified in clause 3 (Purpose).

 
	
  

 	
  

 	
  

 	
  

 
	
 19.2

 	
  

 	
 Authorisations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor will promptly (and in connection with any Finance
 Document, as soon as such Finance Document is entered into):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 supply certified copies to the Agent of,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 any authorisation required under any law or regulation of a Relevant
 Jurisdiction to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (I)

 	
 enable it to perform its obligations under the Finance Documents and
 the Charter Documents or Building Contract Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 ensure the legality, validity, enforceability or admissibility in
 evidence of any Finance Document or Charter Document or Building Contract
 Document; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 carry on its business where failure to do so has, or is reasonably
 likely to have, a Material Adverse Effect.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.3

 	
  

 	
 Compliance with laws

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor, the Manager and the Counter Guarantor Subsidiary will
 comply in all respects with all laws and regulations (including Environmental
 Laws) to which it may be subject.

 
	
  

 	
  

 	
  

 
	
 19.4

 	
  

 	
 Taxation

 
	
  

 	
  

 	
  

 
	
 19.4.1

 	
  

 	
 Each Obligor, the Manager and the Counter Guarantor Subsidiary shall
 pay and discharge all Taxes imposed upon it or its assets within such time
 period as may be allowed by law 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 those Taxes and the costs
 required to contest them which have been disclosed in its latest financial
 statements delivered to the Agent under clause 18.1 (Financial statements); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 such payment can be lawfully withheld.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.4.2

 	
  

 	
 Except as approved by the Lenders, each Obligor shall maintain its
 residence for Tax purposes in the jurisdiction in which it is incorporated
 and ensure that it is not resident for Tax purposes in any other
 jurisdiction.

 
	
  

 	
  

 	
  

 
	
 19.5

 	
  

 	
 Change of business

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as approved, no substantial change will be made to the general
 nature of the business of the Counter Guarantor or the Obligors from that
 carried on at the date of this Agreement.

 
	
  

 	
  

 	
  

 
	
 19.6

 	
  

 	
 Merger

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as approved, no Obligor will enter into any amalgamation,
 demerger, merger, consolidation or corporate reconstruction.

 

44

	
  

 	
  

 	
  

 	
  

 
	
 19.7

 	
  

 	
 Other
 Finance Arrangements

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor (acting in any capacity whatsoever) will agree to
 cross-default provisions as part of another loan or credit agreement entered
 into with a financier which are more beneficial to that financier than those
 provisions set out in clause 28.6 (Cross-Default) other than those
 mentioned in the Counter Guarantor Representations Letter.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.8

 	
  

 	
 Further assurance

 
	
  

 	
  

 	
  

 	
  

 
	
 19.8.1

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to perfect the Security Interests created or intended to be created
 by that Obligor 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 Documents, excluding registration of the Guarantee and
 Counter Guarantee with the respective Companies Registry) or to protect or
 ensure the priority of such Security Interests 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;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to confer on the Security Agent or on the Finance Parties Security
 Interests over any property and assets of that Obligor located in any
 jurisdiction equivalent or similar to the Security Interest intended to be
 conferred by or pursuant to the Security Documents; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 to facilitate the realisation of the assets which are, or are
 intended to be, the subject of the Security Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.8.2

 	
  

 	
 Each Obligor shall take all such action as is available to it
 (including making all filings and registrations, excluding registration of
 the Guarantee and Counter Guarantee with the respective Companies Registry)
 as may be necessary for the purpose of the creation, perfection, protection
 or maintenance of any Security interest (or the priority of any Security
 Interest) conferred or intended to be conferred on the Security Agent or the Finance
 Parties by or pursuant to the relevant Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.9

 	
  

 	
 Negative pledge in respect of Charged
 Property

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as approved and for Permitted Maritime Liens, no Obligor will
 grant or allow to exist any Security Interest over any Charged Property.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.10

 	
  

 	
 Environmental matters

 
	
  

 	
  

 	
  

 	
  

 
	
 19.10.1

 	
  

 	
 Without prejudice to clause 18.5(b), the Agent will be notified as
 soon as reasonably practicable of any Environmental Claim being made against
 any Fleet Vessel or the owner of any Fleet Vessel or the Manager which, if
 successful to any extent, might reasonably be expected to have a Material
 Adverse Effect and of any Environmental Incident which may give rise to such
 a claim and will be kept regularly and promptly informed in reasonable detail
 of the nature of, and response to, any such Environmental Incident and the
 defence to any such claim.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.10.2

 	
  

 	
 Environmental Laws (and any consents, licences or approvals obtained
 under them) applicable to Fleet Vessels will not be violated in a way which
 might have a Material Adverse Effect.

 

45

	
  

 	
  

 	
  

 	
  

 
	
 19.11

 	
  

 	
 Pari
 passu

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor will ensure that its obligations under the Finance
 Documents shall, without prejudice to the security intended to be created by
 the Security Documents, at all times rank at least pari passu with all its
 other present and future unsecured and unsubordinated Indebtedness with the
 exception of any obligations which are mandatorily preferred by law and not
 by contract.

 
	
  

 	
  

 	
  

 	
  

 
	
 20

 	
  

 	
 Construction
 period

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Unless otherwise specifically provided, the Borrower undertakes that
 this clause 20 will be complied with throughout the period from the date of
 this Agreement until the earlier of the Delivery of the Ship and the end of
 the Facility Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.1

 	
  

 	
 Document of title

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall give irrevocable instructions to the Builder to
 hold the Ship and any document of title to the Ship to the order and at the
 disposal of the Security Agent and ensure that the Builder complies with such
 instructions.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.2

 	
  

 	
 Performance of Building Contract

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall duly and punctually observe and perform all the
 conditions and obligations imposed on it by the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.3

 	
  

 	
 Performance by Builder and Refund Guarantor

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall use its best endeavours to ensure that the Builder
 performs its obligations under the Building Contract and builds the Ship
 diligently and that the Refund Guarantor performs its obligations under the
 Refund Guarantee.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.4

 	
  

 	
 Progress and information

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Promptly upon the Borrower becoming aware of the same, it shall
 inform the Agent of any breach by the Builder of the Building Contract and
 upon the Agent’s request, the Borrower shall advise the Agent of the progress
 of construction of the Ship and supply the Agent with such other information
 as the Agent may require about the construction of the Ship or the Building
 Contract or the Refund Guarantee.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.5

 	
  

 	
 Arbitration under Building Contract

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall promptly notify the Agent:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 if either party begins an arbitration under the Building Contract;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 of the identity of the arbitrators; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 of the conclusion of the arbitration and the terms of any arbitration
 award.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.6

 	
  

 	
 Conveyance on default

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where the Ship is (or is to be) sold in exercise of any power
 contained in the Pre-Delivery Security Assignment or otherwise conferred on
 the Security Agent, the Borrower shall execute, immediately upon the Agent’s
 request, such form of conveyance of the Ship as the Agent may require.

 

46

	
  

 	
  

 	
  

 	
  

 
	
 20.7

 	
  

 	
 Enforcement
 of rights

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Upon the occurrence of an Event of Default which is continuing or
 upon the Agent becoming aware of a breach by the Builder under the Building
 Contract, the Borrower shall do everything which the Agent requires for the
 purpose of enforcing the rights of the Borrower under the Building Contract
 and/or the Refund Guarantee and allow its name to be used by the Security
 Agent for that purpose. Prior to the occurrence of an Event of Default which
 is continuing, the Borrower shall, at the Agent’s request, enter into
 consultation with the Agent and upon agreement between the Agent and the
 Borrower, the Borrower shall do everything which the Agent requires for the
 purpose of enforcing the rights of the Borrower under the Building Contract
 and/or the Refund Guarantee and allow its name to be used by the Security
 Agent for that purpose.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.8

 	
  

 	
 Notification of certain events

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall notify the Agent as soon as it becomes aware that
 either party has cancelled, rescinded, repudiated or otherwise terminated the
 Building Contract (or has purported to do so) or has rejected the Ship (or
 purported to do so) or if the Ship has become a Total Loss or partial loss or
 is materially damaged or if a dispute arises under the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.9

 	
  

 	
 Ship’s registration and mortgage

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower will, immediately upon its Delivery, duly execute (and
 deliver to the Agent) the Mortgage and register the Ship and the Mortgage
 with the relevant Registry under the laws and flag of its Flag State.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.10

 	
  

 	
 Sale or other disposal

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, such approval not to be unreasonably withheld,
 the Borrower will not dispose of the Ship or any share or interest in it or
 its rights under the Building Contract or the Refund Guarantee or agree to do
 so.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.11

 	
  

 	
 Variations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Refund Guarantee will not be varied;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the Building Contract shall not be varied and the specification of
 the Ship shall not be materially varied (and, for the avoidance of doubt,
 variations requiring approval shall include, but shall not be limited to, any
 assignment or novation of the Building Contract, any variation which might
 reasonably be expected to delay the delivery of the Ship beyond the Last
 Availability Date or put at risk the delivery of the Ship to the Charterer or
 any variation to alter the circumstances in which the Building Contract may
 be cancelled, terminated or suspended);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the specification of the Ship will not be changed in a substantial
 way (and for the avoidance of doubt, substantial changes requiring approval
 shall include, but shall not be limited to, any variation which alters the
 intended type, commercial use, purpose or trading capacity of the Ship or
 materially reduces the Ship’s anticipated value when completed or impairs the
 intended use under the Charter); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the terms upon which supervision of construction of the Ship is being
 conducted (which might have been approved) shall not be varied.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For this purpose, ordering any extras, additions or alterations will
 be a substantial change and a material variation if their cost (or if the
 aggregate cost of the proposed work together with the 

 

47

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 cost of any additional work already ordered or change of
 specification already agreed) will alter the Contract Price by a cumulative
 amount greater than 5% of the Price. The Borrower shall agree in writing with
 the Builder the terms and specification of any such work before the work is
 put in hand irrespective of whether approval of that work is required under
 the Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.12

 	
  

 	
 Releases and waivers

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, there shall be no release of the Builder or the
 Refund Guarantor from any of its obligations under the Building Contract or
 the Refund Guarantee, no waiver of any breach of such obligations and no
 consent to anything which would otherwise be such a breach.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.13

 	
  

 	
 Rejection and cancellation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval such approval not to be:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 unreasonably delayed; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 unreasonably withheld (in the event that the delivery of the Ship to
 the Charterer will not be in compliance with the Charter),

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the Borrower shall not exercise any right which it may have to reject
 the Ship (save in circumstances where the Building Contract is not cancelled,
 rescinded or otherwise terminated and the Builder shall have the right under
 the Building Contract to remedy a deficiency in the Ship justifying such
 rejection and re-tender it for delivery to the Borrower after such rejection)
 or cancel or rescind or otherwise terminate the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
 21

 	
  

 	
 Dealings with
 Ship

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 21 will be complied with in
 relation to the Ship throughout the Mortgage Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 21.1

 	
  

 	
 Ship’s name and registration

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 The Ship’s name shall only be changed after prior notice to the
 Agent.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 The Ship shall be permanently registered with the relevant Registry
 within 90 days of the date of the Mortgage registered with the relevant
 Registry under the laws of its Flag State. Except with approval, the Ship
 shall not be registered under any other flag or at any other port or fly any
 other flag (other than that of its Flag State). If that registration is for a
 limited period, it shall be renewed at least 45 days before the date it is
 due to expire and the Agent shall be notified of that renewal at least 30
 days before that date.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Nothing will be done and no action will be omitted if that might
 result in such registration being forfeited or imperilled or the Ship being
 required to be registered under the laws of another state of registry.

 
	
  

 	
  

 	
  

 	
  

 
	
 21.2

 	
  

 	
 Sale or other disposal of Ship

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, such approval not to be unreasonably withheld,
 the Borrower will not sell, or agree to, transfer, abandon or otherwise
 dispose of the Ship or any share or interest in it.

 

48

	
  

 	
  

 	
  

 	
  

 
	
 21.3

 	
  

 	
 Manager

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A manager of the Ship shall not be appointed unless that manager and
 the terms of its appointment are approved (such approval not to be
 unreasonably withheld) and it has delivered a duly executed Manager’s
 Undertaking to the Security Agent. Once approved, no material variations may
 be agreed to the terms of appointment of the manager without approval (and,
 for the avoidance of doubt, any assignment or novation of the terms of
 appointment without approval shall constitute a material variation).

 
	
  

 	
  

 	
  

 	
  

 
	
 21.4

 	
  

 	
 Copy of Mortgage on board

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A properly certified copy of the Mortgage shall be kept on board the
 Ship with its papers and shown to anyone having business with the Ship which
 might create or imply any commitment or Security Interest over or in respect
 of the Ship (other than a lien for crew’s wages and salvage) and to any
 representative of the Agent or the Security Agent.

 
	
  

 	
  

 	
  

 	
  

 
	
 21.5

 	
  

 	
 Notice of Mortgage

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A framed printed notice of the Mortgage shall be prominently
 displayed in the navigation room and in the Master’s cabin of the Ship. The
 notice must be in plain type and read as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
  “NOTICE OF MORTGAGE

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This Ship is subject to a first mortgage in favour of [here
 insert name of mortgagee] of [here insert address of mortgagee]. Under
 the said mortgage and related documents, neither the Owner nor any charterer
 nor the Master of this Ship has any right, power or authority to create,
 incur or permit to be imposed upon this Ship any commitments or encumbrances
 whatsoever other than for crew’s wages and salvage”.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No-one will have any right, power or authority to create, incur or
 permit to be imposed upon the Ship any lien whatsoever other than for crew’s
 wages and salvage.

 
	
  

 	
  

 	
  

 	
  

 
	
 21.6

 	
  

 	
 Conveyance on default

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Where the Ship is (or is to be) sold in exercise of any power
 conferred by the Security Documents, the Borrower shall, upon the Agent’s
 request, immediately execute such form of transfer of title to the Ship as
 the Agent may require.

 
	
  

 	
  

 	
  

 	
  

 
	
 21.7

 	
  

 	
 Chartering

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Borrower shall not enter into any charter
 commitment for the Ship (except for the Charter), which is:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 a bareboat or demise charter or passes possession and operational
 control of the Ship to another person;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 capable of lasting more than 13 calendar months;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 on terms as to payment or amount of hire which are materially less
 beneficial to it than the terms which at that time could reasonably be
 expected to be obtained on the open market for vessels of the same age and
 type as the Ship under charter commitments of a similar type and period; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 to an Affiliate.

 

49

	
  

 	
  

 	
  

 	
  

 
	
 21.8

 	
  

 	
 Sharing
 of Earnings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Borrower shall not enter into any
 arrangement under which its Earnings from the Ship may be shared with anyone
 else.

 
	
  

 	
  

 	
  

 	
  

 
	
 21.9

 	
  

 	
 Payment of Earnings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower’s Earnings from the Ship shall be paid in the way
 required by the Deed of Covenant and the Charter Assignment. If any Earnings
 are held by brokers or other agents, they shall be paid to the Security
 Agent, if it requires this after the Earnings have become payable to it under
 the Deed of Covenant and the Charter Assignment.

 
	
  

 	
  

 	
  

 	
  

 
	
 22

 	
  

 	
 Condition and
 operation of Ship

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 22 will be complied with in
 relation to the Ship throughout the Mortgage Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.1

 	
  

 	
 Repair

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall be kept in a good, safe and efficient state of repair.
 The quality of workmanship and materials used to repair the Ship or replace
 any damaged, worn or lost parts or equipment shall be sufficient to ensure
 that the Ship’s value is not reduced.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.2

 	
  

 	
 Modification

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the structure, type or performance
 characteristics of the Ship shall not be modified in a way which could or
 might materially alter the Ship or materially reduce its value.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.3

 	
  

 	
 Removal of parts

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, no material part of the Ship or any equipment
 shall be removed from the Ship if to do so would materially reduce its value
 (unless at the same time it is replaced with equivalent parts or equipment
 owned by the Borrower free of any Security Interest except under the Security
 Documents).

 
	
  

 	
  

 	
  

 	
  

 
	
 22.4

 	
  

 	
 Third party owned equipment

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, equipment owned by a third party shall not be
 installed on the Ship, unless it can be removed without risk of causing
 damage to the structure or fabric of the Ship or without incurring
 significant expense.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.5

 	
  

 	
 Maintenance of class; compliance with laws

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship’s class shall be the Classification with the Classification
 Society and neither the Classification nor the Classification Society shall
 be changed without approval and there must be no material overdue
 recommendations. The Ship and every person who owns, operates or manages the
 Ship shall comply with all laws applicable to vessels registered in its Flag
 State or which for any other reason apply to the Ship or to its condition or
 operation.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.6

 	
  

 	
 Surveys

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall be submitted to continuous surveys and any other
 surveys which are required for it to maintain the Classification as its
 class. Copies of reports of those surveys shall be provided promptly to the
 Agent if it so requests.

 

50

	
  

 	
  

 	
  

 	
  

 
	
 22.7

 	
  

 	
 Inspection
 and notice of drydockings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent and/or surveyors or other persons appointed by it for such
 purpose shall be allowed to board the Ship at all reasonable times, subject
 to prior notice to the Borrower and without hindering the Ship’s operations,
 to inspect it and given all proper facilities needed for that purpose. The
 Agent shall be given reasonable advance notice of any intended drydocking of
 the Ship (whatever the purpose of that drydocking).

 
	
  

 	
  

 	
  

 	
  

 
	
 22.8

 	
  

 	
 Prevention of arrest

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All debts, damages, liabilities and outgoings (due and payable and
 not contested by Borrower in good faith) which have given, or may reasonably
 give, rise to maritime, statutory or possessory liens on, or claims
 enforceable against, the Ship, its Earnings or Insurances shall be promptly
 paid and discharged.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.9

 	
  

 	
 Release from arrest

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall use its reasonable endeavours that the Ship, its
 Earnings and Insurances shall promptly within 15 days (or such longer period
 as may be approved) be released from any arrest, detention, attachment or
 levy, and that any legal process against the Ship shall be promptly within 15
 days (or such longer period as may be approved) discharged, by whatever
 action is required to achieve that release or discharge.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.10

 	
  

 	
 Information about Ship

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall promptly be given any information which it may
 reasonably require about the Ship or its employment, position, use or
 operation, including details of towages and salvages, and copies of all its
 charter commitments entered into by or on behalf of any Obligor, provided
 that any information so requested and supplied which pertains to the Charter
 shall be held by the Agent and the other Finance Parties on a confidential
 basis.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.11

 	
  

 	
 Notification of certain events

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall promptly be notified of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any damage to the Ship where the cost of the resulting repairs may
 exceed the Major Casualty Amount;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any occurrence which may result in the Ship becoming a Total Loss;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any requisition of the Ship for hire;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 any Environmental Incident involving the Ship and Environmental Claim
 being made in relation to such an incident;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 any requirement or recommendation made in relation to the Ship by any
 insurer or the Classification Society or by any competent authority which is
 not, or cannot be, complied with in the manner or time required or
 recommended; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 any arrest or detention of the Ship or any exercise or purported
 exercise of a lien or other claim on the Ship or its Earnings or Insurances.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.12

 	
  

 	
 Payment of outgoings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All tolls, dues and other outgoings whatsoever in respect of the Ship
 and its Earnings and Insurances shall be paid promptly. Proper accounting
 records shall be kept of the Ship and its Earnings.

 

51

	
  

 	
  

 	
  

 	
  

 
	
 22.13

 	
  

 	
 Evidence
 of payments

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall be allowed proper and reasonable access, subject to
 prior written notice and provided that the operations of the Borrower are not
 in any way hindered, to those accounting records when it reasonably requests
 it and, when it reasonably requires it, shall be given satisfactory evidence
 that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the wages and allotments and the insurance and pension contributions
 of the Ship’s crew are being promptly and regularly paid;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 all deductions from its crew’s wages in respect of any applicable Tax
 liability are being properly accounted for; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Ship’s master has no claim for disbursements other than those
 incurred by him in the ordinary course of trading on the voyage then in
 progress.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.14

 	
  

 	
 Repairers’ liens

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Ship shall not be put into any other
 person’s possession for work to be done on the Ship if the cost of that work
 will exceed or is likely to exceed the Major Casualty Amount unless the
 Borrower has established to the reasonable satisfaction of the Agent that it
 has sufficient reserves with the Account Bank to pay for the cost of such
 work.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.15

 	
  

 	
 Codes

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship and the persons responsible for its operation shall at all
 times comply with the requirements of any applicable code or prescribed
 procedures required to be observed by the Ship or in relation to its
 operation under any applicable law or regulation (including but not limited
 to those currently known as the ISM Code and the ISPS Code). The Agent shall
 promptly be informed of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any threatened or actual withdrawal of any certificate issued in
 accordance with any such code which is or may be applicable to the Ship or
 its operation; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the issue of any such certificate or the receipt of notification that
 any application for such a certificate has been refused.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.16

 	
  

 	
 Survey report

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 As soon as reasonably practicable after the Agent requests it, the
 Agent shall be given a report on the seaworthiness and/or safe operation of
 the Ship, from approved surveyors or inspectors. If any recommendations are
 made in such a report they shall be complied with in the way and by the time
 recommended in the report.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.17

 	
  

 	
 Lawful use

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall not be employed:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in any way or in any activity which is unlawful under international
 law or the domestic laws of any relevant country;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 in carrying illicit or prohibited goods;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in a way which may make it liable to be condemned by a prize court or
 destroyed, seized or confiscated; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 if there are hostilities in any part of the world (whether war has
 been declared or not), in carrying contraband goods 

 

52

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and the persons responsible for the operation of the Ship shall take
 all necessary and proper precautions to ensure that this does not happen
 including participation in industry or other voluntary schemes available to
 the Ship and in which leading operators of ships operating under the same
 flag or engaged in similar trades generally participate at the relevant time.

 
	
  

 	
  

 	
  

 	
  

 
	
 22.18

 	
  

 	
 War zones

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship may enter or remain in any zone which has been declared a
 war zone by any government entity or the Ship’s war risk insurers, with prior
 notice to the Agent and subject to any requirements of the Ship’s insurers
 necessary to ensure that the Ship remains properly insured in accordance with
 the Finance Documents (including any requirement for the payment of extra
 insurance premiums) shall be complied with.

 
	
  

 	
  

 	
  

 	
  

 
	
 23

 	
  

 	
 Insurance

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 23 shall be complied with in
 relation to the Ship and its Insurances throughout the Mortgage Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.1

 	
  

 	
 Insurance terms

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In this clause 23:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “excess risks” means the proportion (if any) of claims for
 general average, salvage and salvage charges not recoverable under the hull
 and machinery insurances of a vessel in consequence of the value at which the
 vessel is assessed for the purpose of such claims exceeding its insured
 value.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “excess war risk P&I cover” means cover for claims only
 in excess of amounts recoverable under the usual war risk cover including
 (but not limited to) hull and machinery, crew and protection and indemnity
 risks.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “hull cover” means insurance cover against the risks
 identified in clause 23.2(a).

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “minimum hull cover” means an amount equal at the relevant
 time to 120% of the Loan.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “P&I risks” means the usual risks (including liability
 for oil pollution, excess war risk P&I cover) covered by a protection and
 indemnity association which is a member of the International Group of
 protection and indemnity associations (or, if the International Group ceases
 to exist, any other leading protection and indemnity association or other
 leading provider of protection and indemnity insurance) (including, without
 limitation, the proportion (if any) of any collision liability not covered
 under the terms of the hull cover).

 
	
  

 	
  

 	
  

 	
  

 
	
 23.2

 	
  

 	
 Coverage required

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall at all times be insured:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 against fire and usual marine risks (including excess risks) and war
 risks (including war protection and indemnity risks and terrorism risks) on
 an agreed value basis, for at least its minimum hull cover and no less than
 its market value;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 against P&I risks for the highest amount then available in the
 insurance market for vessels of similar age, size and type as the Ship (but,
 in relation to liability for oil pollution, for an amount of not less than
 $1,000,000,000) and a freight, demurrage and defence cover;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 against such other risks and matters which the Agent (acting on the
 instructions of all the Lenders) notifies it that it considers reasonable for
 a prudent shipowner or operator to insure against at the time of that notice;
 and

 

53

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 on terms which comply with the other provisions of this clause 23.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.3

 	
  

 	
 Placing of cover

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The insurance coverage required by clause 23.2 (Coverage required) shall
 be:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in the name of the Borrower and (in the case of the Ship’s hull
 cover) no other person (other than the Security Agent if required by it)
 (unless such other person is approved and, if so required by the Agent, has
 duly executed and delivered a first priority assignment of its interest in
 the Ship’s Insurances to the Security Agent in an approved form and provided
 such supporting documents and opinions in relation to that assignment as the
 Agent requires);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 if the Agent so requests, in the joint names of the Borrower and
 Security Agent (and, to the extent reasonably practicable in the insurance
 market, without liability on the part of the Security Agent for premiums or
 calls);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in dollars or another approved currency;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 arranged through approved brokers or direct with approved insurers or
 protection and indemnity or war risks associations; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 on approved terms and with approved insurers or associations.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.4

 	
  

 	
 Deductibles

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The aggregate amount of any excess or deductible under the Ship’s
 hull cover shall not exceed $1,000,000 without the Agent’s approval.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.5

 	
  

 	
 Mortgagee’s insurance

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 The Borrower shall promptly reimburse to the Agent the cost (as
 conclusively certified by the Agent) of taking out and keeping in force in
 respect of the Ship on approved terms, or in considering or making claims
 under a mortgagee’s interest insurance and a mortgagee’s additional perils
 (all P&I risks) cover for the benefit of the Finance Parties for an amount
 of 110% of the Loan; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any other insurance cover which the Agent reasonably requires in
 respect of any Finance Party’s interests and potential liabilities (but not
 with respect to loss of hire of the Ship) (whether as mortgagee of the Ship or
 beneficiary of the Security Documents).

 
	
  

 	
  

 	
  

 	
  

 
	
 23.6

 	
  

 	
 Fleet liens, set off and cancellations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Ship’s hull cover also insures other vessels, the Security
 Agent shall either be given an undertaking in approved terms by the brokers
 or (if such cover is not placed through brokers or the brokers do not, under
 any applicable laws or insurance terms, have such rights of set off and
 cancellation) the relevant insurers that the brokers or (if relevant) the
 insurers will not:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 set off against any claims in respect of the Ship any premiums due in
 respect of any of such other vessels insured; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 cancel that cover because of non-payment of premiums in respect of
 such other vessels, 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or the Borrower shall ensure that hull cover for the Ship is provided
 under a separate policy from any other vessels.

 

54

	
  

 	
  

 	
  

 	
  

 
	
 23.7

 	
  

 	
 Payment of premiums

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All premiums, calls, contributions or other sums payable in respect
 of the Insurances shall be paid punctually and the Agent shall be provided
 with all relevant receipts or other evidence of payment upon request.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.8

 	
  

 	
 Details of proposed renewal of Insurances

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 At least 14 days before any of the Insurances are due to expire, the
 Agent shall be told the names of the brokers, insurers and associations
 proposed to be used for the renewal of such Insurances and the amounts, risks
 and terms in, against and on which the Insurances are proposed to be renewed.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.9

 	
  

 	
 Instructions for renewal

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 At least seven days before any of the Insurances are due to expire,
 instructions shall be given to brokers, insurers and associations for them to
 be renewed or replaced on or before their expiry.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.10

 	
  

 	
 Confirmation of renewal

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Insurances shall be renewed upon their expiry in a manner and on
 terms which comply with this clause 23 and confirmation of such renewal given
 by approved brokers or insurers to the Agent at least seven days (or such
 shorter period as may be approved) before such expiry.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.11

 	
  

 	
 P&I guarantees

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any guarantee or undertaking required by any protection and indemnity
 or war risks association in relation to the Ship shall be provided when
 required by the association.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.12

 	
  

 	
 Insurance documents

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall be provided with pro forma copies of all insurance
 policies and other documentation issued by brokers, insurers and associations
 in connection with the Insurances as soon as they are available after they
 have been placed or renewed and all insurance policies and other documents
 relating to the Insurances shall be deposited with any approved brokers or
 (if not deposited with approved brokers) the Agent or some other approved
 person.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.13

 	
  

 	
 Letters of undertaking

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Unless otherwise approved where the Agent is satisfied that
 equivalent protection is afforded by the terms of the relevant Insurances
 and/or any applicable law and/or a letter of undertaking provided by another
 person, on each placing or renewal of the Insurances, the Agent shall be
 provided promptly with letters of undertaking in an approved form (having
 regard to general insurance market practice and law at the time of issue of
 such letter of undertaking) from the relevant brokers, insurers and
 associations.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.14

 	
  

 	
 Insurance Notices and Loss Payable Clauses

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The interest of the Security Agent as assignee of the Insurances
 shall be endorsed on all insurance policies and other documents by the
 incorporation of a Loss Payable Clause and an Insurance Notice in respect of
 the Ship and its Insurances signed by the Borrower and, unless otherwise
 approved, each other person assured under the relevant cover (other than the
 Security Agent if it is itself an assured).

 

55

	
  

 	
  

 	
  

 	
  

 
	
 23.15

 	
  

 	
 Insurance correspondence

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If so required by the Agent, the Agent shall promptly be provided
 with copies of all written communications between the assureds and brokers,
 insurers and associations relating to any of the Insurances as soon as they
 are available.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.16

 	
  

 	
 Qualifications and exclusions

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All requirements applicable to the Insurances shall be complied with
 and the Insurances shall only be subject to approved exclusions or
 qualifications.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.17

 	
  

 	
 Independent report

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Agent asks the Borrower for a detailed report from an approved
 independent firm of marine insurance brokers giving their opinion on the
 adequacy of the Insurances then the Agent shall be provided promptly with
 such a report at no cost to the Agent or (if the Agent obtains such a report
 itself) the Borrower shall reimburse the Agent for the cost of obtaining that
 report.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.18

 	
  

 	
 Collection of claims

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All documents and other information and all assistance required by
 the Agent to assist it and/or the Security Agent in trying to collect or
 recover any claims under the Ship’s Insurances shall be provided promptly.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.19

 	
  

 	
 Employment of Ship

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship shall only be employed or operated in conformity with the
 terms of the Insurances (including any express or implied warranties) and not
 in any other way, unless the insurers have consented and any additional
 requirements of the insurers have been satisfied.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.20

 	
  

 	
 Declarations and returns

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If any of the Insurances are on terms that require a declaration,
 certificate or other document to be made or filed before the Ship sails to,
 or operates within, an area, those terms shall be complied with within the
 time and in the manner required by those Insurances.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.21

 	
  

 	
 Application of recoveries

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All sums paid under the Insurances to anyone other than the Security
 Agent shall be applied in repairing the damage and/or in discharging the
 liability in respect of which they have been paid except to the extent that
 the repairs have already been paid for and/or the liability already
 discharged.

 
	
  

 	
  

 	
  

 	
  

 
	
 23.22

 	
  

 	
 Settlement of claims

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any claim under the Insurances for a Total Loss or Major Casualty
 shall only be settled, compromised or abandoned with prior approval.

 
	
  

 	
  

 	
  

 	
  

 
	
 24

 	
  

 	
 Minimum security
 value

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 24 will be complied with
 throughout the Facility Period.

 

56

	
  

 	
  

 	
  

 	
  

 
	
 24.1

 	
  

 	
 Valuation of assets

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 For the purpose of the Finance Documents, the value at any time of
 the Ship or any other asset over which additional security is provided under
 this clause 24 will be its value as most recently determined in accordance
 with this clause 24.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.2

 	
  

 	
 Valuation frequency

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Valuation of the Ship or, as the case may be, the Building Contract
 and each such other asset in accordance with this clause 24 shall be required
 by the Agent on or prior to making available the Pre-Delivery Commitment, the
 Delivery Commitment, once per annum thereafter within ten days of the end of
 each calendar year and at any time after the occurrence of a Default.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.3

 	
  

 	
 Expenses of valuation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall bear, and reimburse to the Agent where incurred by
 the Agent, all costs and expenses of providing such a valuation.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.4

 	
  

 	
 Valuations procedure

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The value of the Ship (or the Building Contract up until the date
 falling two months prior to the Delivery Date of the Building Contract) shall
 be determined in accordance with, and by valuers approved and appointed in
 accordance with, this clause 24. Additional security provided under this
 clause 24 shall be valued in such a way, on such a basis and by such persons
 (including the Agent itself) as may be approved.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.5

 	
  

 	
 Currency of valuation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Valuations shall be provided by valuers in dollars or, if a valuer is
 of the view that the relevant type of vessel is generally bought and sold in
 another currency, in that other currency. If a valuation is provided in
 another currency, for the purposes of this Agreement it shall be converted
 into dollars at the Agent’s spot rate of exchange for the purchase of dollars
 with that other currency as at the date to which the valuation relates.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.6

 	
  

 	
 Basis of valuation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each valuation will be made:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 without physical inspection (unless required by the Agent);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 on the basis of a sale for prompt delivery for a price payable in
 full in cash on delivery at arm’s length on normal commercial terms between a
 willing buyer and a willing seller;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 without taking into account the benefit (but taking into account the
 burden) of any charter commitment; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 (in the case of a valuation of the Building Contract) by deducting
 from the valuation the aggregate payments which remain to be paid by the
 Borrower under the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.7

 	
  

 	
 Information required for valuation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall promptly provide to the Agent and any such valuer
 any information which they reasonably require for the purposes of providing
 such a valuation.

 

57

	
  

 	
  

 	
  

 	
  

 
	
 24.8

 	
  

 	
 Approval of valuers

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All valuers must have been approved (the approved valuers as at the
 date of this Agreement are E. A. Gibson Shipbrokers Limited, Lorentzen &
 Stemoco A.S., Barry Rogliano Salles & Cie, Clarkson plc, Poten &
 Partners, Fearnley and Simpson, Spence & Young Limited). The Agent may
 from time to time notify the Borrower of approval of one or more independent
 ship brokers as valuers for the purposes of this clause 24. The Agent shall
 respond promptly to any request by the Borrower for approval of a broker
 nominated by the Borrower. The Agent may at any time by notice to the
 Borrower withdraw any previous approval of a valuer for the purposes of
 future valuations. That valuer may not then be appointed to provide
 valuations unless it is once more approved. If the Agent has not approved at
 least three brokers as valuers at a time when a valuation is required under
 this clause 24, the Agent shall promptly notify the Borrower of the names of
 at least three valuers which are approved.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.9

 	
  

 	
 Appointment of valuers

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 When a valuation is required for the purposes of this clause 24, the
 Agent or, if so approved at that time, the Borrower shall promptly appoint
 approved valuers to provide such a valuation. If the Borrower is approved to
 appoint valuers but fails to do so promptly, the Agent may appoint approved
 valuers to provide that valuation.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.10

 	
  

 	
 Number of valuers

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each valuation shall be carried out by two approved valuers of whom
 one shall be nominated by the Agent and the other by the Borrower. If the
 Borrower fails promptly to nominate a second valuer then the Agent may
 nominate the second valuer.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.11

 	
  

 	
 Differences in valuations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If valuations provided by individual valuers differ, the value of the
 Ship or, as the case may be, the Building Contract for the purposes of the
 Finance Documents will be the mean average of those valuations. If valuations
 provided by individual valuers appointed by the Borrower and the Agent differ
 by 15% or more a third approved valuer shall be appointed by the Agent and
 the value of the Ship or, as the case may be, the Building Contract will be
 the mean average of those three valuations.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.12

 	
  

 	
 Security shortfall

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If at any time the Security Value is less than the Minimum Value, the
 Agent may, and shall, if so directed by the Lenders, by notice to the
 Borrower require such deficiency be remedied. The Borrower shall then within
 14 days of receipt of such notice ensure that the Security Value equals or
 exceeds the Minimum Value. For this purpose, the Borrower may:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 provide additional security over other approved assets by the Lenders
 in accordance with this clause 24; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 cancel part of the Total Commitments under clause 7.2 (Voluntary
 cancellation) but on five Business Days’ notice instead of the
 period required by such clause; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 prepay part of the Loan under clause 7.3 (Voluntary prepayment) but
 on five Business Days’ notice instead of the period required by such clause.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.13

 	
  

 	
 Creation of additional security

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The value of any additional security which the Borrower offers to
 provide to remedy all or part of a shortfall in the amount of the Security
 Value will only be taken into account for the purposes of determining the
 Security Value if and when:

 

58

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 that additional security, its value and the method of its valuation
 have been approved by the Lenders;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a Security Interest over that security has been constituted in favour
 of the Security Agent in an approved form and manner;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 this Agreement has been unconditionally amended in such manner as the
 Agent requires in consequence of that additional security being provided; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Agent, or its duly authorised representative, has received such
 documents and evidence it may require in relation to that additional security
 including documents and evidence of the type referred to in Schedule 3 in
 relation to that additional security and its execution and (if applicable)
 registration.

 
	
  

 	
  

 	
  

 	
  

 
	
 24.14

 	
  

 	
 Security release

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the Security Value shall at any time exceed the Security
 Requirement, and the Borrower shall previously have provided further security
 to the Security Agent pursuant to clause 24.12 (Security Shortfall), the
 Security Agent shall, as soon as reasonably practicable after notice from the
 Borrower to do so and subject to being indemnified to its satisfaction
 against the cost of doing so, release any such further security specified by
 the Borrower provided that the Bank is satisfied that, immediately following
 such release, the Security Value will equal or exceed the Security
 Requirement and no other Event of Default shall have occurred and be
 continuing.

 
	
  

 	
  

 	
  

 	
  

 
	
 25

 	
  

 	
 Chartering undertakings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause 25 will be complied with in
 relation to the Ship and its Charter Documents throughout the Mortgage
 Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 25.1

 	
  

 	
 Variations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval (not to be unreasonably delayed), the Charter
 Documents shall not be varied (and, for the avoidance of doubt, any
 assignment or novation of a Charter Document without approval shall
 constitute a variation).

 
	
  

 	
  

 	
  

 	
  

 
	
 25.2

 	
  

 	
 Releases and waivers

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, there shall be no release by the Borrower of
 any obligation of any other person under the Charter Documents (including by
 way of novation), no waiver of any breach of any such obligation and no
 consent to anything which would otherwise be such a breach.

 
	
  

 	
  

 	
  

 	
  

 
	
 25.3

 	
  

 	
 Termination

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Borrower shall not terminate or rescind any
 Charter Document or withdraw the Ship from service under the Charter or take
 any similar action.

 
	
  

 	
  

 	
  

 	
  

 
	
 25.4

 	
  

 	
 Charter performance

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall perform its obligations under the Charter
 Documents and use its reasonable endeavours to ensure that each other party
 to them performs their obligations under the Charter Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 25.5

 	
  

 	
 Notice of assignment

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall give notice of assignment of the Charter Documents
 to the other parties to them in the form specified by the Charter Assignment
 prior to the delivery of the Ship and shall 

 

59

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 procure a copy of that notice acknowledged by each addressee in the
 form specified in the Charter Assignment for the Agent.

 
	
  

 	
  

 	
  

 	
  

 
	
 25.6

 	
  

 	
 Payment of Charter Earnings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All Earnings which the Borrower is entitled to receive under the
 Charter Documents shall be paid in the manner required by the Security
 Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 26

 	
  

 	
 Bank accounts

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower undertakes that this clause will be complied with
 throughout the Facility Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.1

 	
  

 	
 Revenue Account

 
	
  

 	
  

 	
  

 	
  

 
	
 26.1.1

 	
  

 	
 The Borrower shall be the holder of one or more Accounts with an
 Account Bank which is designated as a “Revenue Account” for the purposes of the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.1.2

 	
  

 	
 The Earnings of the Ship and all moneys payable to the Borrower under
 the Insurances shall be paid by the persons from whom they are due to a
 Revenue Account unless required to be paid to the Security Agent under the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.1.3

 	
  

 	
 The Borrower shall not withdraw amounts standing to the credit of an
 Revenue Account except as permitted by clause 26.1.4.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.1.4

 	
  

 	
 If there is no Event of Default, the Borrower shall withdraw the
 following amounts from a Revenue Account in the following order of priority
 during each monthly period in an approved manner:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 payments of the proper costs and expenses of insuring, drydocking,
 repairing, operating and maintaining the Ship (provided that such costs and
 expenses shall not exceed the Opex Hire (as defined in clause 10 of the
 Charter) in respect of such monthly period;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 payments then due to Finance Parties under the Finance Documents
 (other than payments due in respect of a prepayment);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 payments to a Retention Account required to comply with clause 26.2 (Retention
 Account);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 payments of Fixed Rate Differential Amount described in clause 26.3 (Fixed Rate
 Differential Amount) to the Fixed Rate Differential Account; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 the balance after payment of the sums referred to in (a) to (d) shall
 be paid to the Reserve Account.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.2

 	
  

 	
 Retention Account

 
	
  

 	
  

 	
  

 	
  

 
	
 26.2.1

 	
  

 	
 The Borrower shall be the holder of an Account denominated in dollars
 with an Account Bank which is designated as the “Retention Account” for the
 purposes of the Finance Documents by the Borrower and the Lender.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.2.2

 	
  

 	
 There shall be paid into the Retention Account such amounts as will
 ensure that, on each date (a retention date) falling 10 days after the date (start date)
 three months before the First Repayment Date and at monthly intervals after
 that, the amount credited to the Retention Account is at least:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the relevant fraction of the net amount of interest payable under
 clause 8 (Interest)
 during or at the end of the Interest Period current on that retention date;
 plus

 

60

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the relevant fraction of the instalment of the Loan due to be repaid
 under clause 6.1 (Repayment) on the next Repayment Date
 after that retention date.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.2.3

 	
  

 	
 The relevant fraction of such an amount of interest or instalment of
 the Loan as at a retention date will be the fraction whose numerator is the
 number of retention dates up to and including the relevant retention date
 from the beginning of that Interest Period (in the case of interest) or since
 the start date or, if later, the previous Repayment Date (in the case of such
 instalment) and whose denominator is the number of retentions dates falling
 during or at the end of the relevant Interest Period or, as the case may be,
 the period beginning on the previous Repayment Date (or the start date in the
 case of retention dates before the First Repayment Date) and ending on the
 relevant Repayment Date.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.2.4

 	
  

 	
 The Borrower shall not withdraw amounts standing to the credit of the
 Retention Account except as permitted by clause 26.2.5.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.2.5

 	
  

 	
 If there is no continuing Event of Default and if (unless the payment
 is to a new Retention Account), after the withdrawal, the balance on the
 Retention Account will be at least the minimum amount required by clause
 26.2.2 at that time, the Borrower may withdraw the following amounts from the
 Retention Account:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 payments of interest due under clause 8 (Interest) and repayments
 of the Loan due under clause 6.1 (Repayment); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 payment to the Reserve Account of any amount by which the balance on
 the Retention Account exceeds that minimum amount.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.3

 	
  

 	
 Fixed Rate Differential Account

 
	
  

 	
  

 	
  

 	
  

 
	
 26.3.1

 	
  

 	
 The Borrower shall be the holder of an Account denominated in dollars
 with an Account Bank which is designated as the “Fixed Rate Differential Account”
 for the purposes of the Finance Documents by the Borrower and the Lender.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.3.2

 	
  

 	
 There shall be paid into the Fixed Rate Differential Account such
 amounts as will ensure that, on each date (an FRD date) falling 10 days
 after the date (FRD start date) three months before the
 First Repayment Date and at monthly intervals after that, the amount credited
 to the Fixed Rate Differential Account is at least accruing the relevant
 fraction of the Fixed Rate Differential Amount during or at the end of the
 Interest Period current on that FRD date;

 
	
  

 	
  

 	
  

 	
  

 
	
 26.3.3

 	
  

 	
 The relevant fraction of such Fixed Rate Differential Amount as at an
 FRD date will be the fraction whose numerator is the number of FRD dates up
 to and including the relevant FRD date from the beginning of that Interest
 Period and whose denominator is the number of FRD dates falling during or at
 the end of the relevant Interest Period (or the FRD start date in the case of
 FRD dates before the First Repayment Date) and ending on the relevant
 Repayment Date

 
	
  

 	
  

 	
  

 	
  

 
	
 26.3.4

 	
  

 	
 The Borrower shall not withdraw amounts standing to the credit of the
 Fixed Rate Differential Account except as permitted by clause 26.3.5.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.3.5

 	
  

 	
 If there is no continuing Event of Default the balance (if any) on
 the Fixed Rate Differential Account will be applied in accordance with clause
 7.4 (Fixed
 Rate Differential Amount Prepayment) on each Repayment Date.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.4

 	
  

 	
 Reserve Account

 
	
  

 	
  

 	
  

 	
  

 
	
 26.4.1

 	
  

 	
 The Borrower shall be the holder of one or more Accounts with an
 Account Bank which is designated as a “Reserve Account” for the purposes of the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.4.2

 	
  

 	
 The Borrower shall not withdraw amounts standing to the credit of a
 Reserve Account except:

 

61

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 if approved; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 if the Charter is extended for a period of not less than 30 months in
 accordance with clause 7(d) of the Charter and subject always to clause 28.20
 (Charter
 termination), no Default having occurred and being continuing; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in or towards repayment of the Loan on the Final Repayment Date.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.5

 	
  

 	
 Other provisions

 
	
  

 	
  

 	
  

 	
  

 
	
 26.5.1

 	
  

 	
 An Account may only be designated for the purposes described in this
 clause 26 if:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 such designation is made in writing by the Agent and acknowledged by
 the Borrower and specifies the name and address of the Account Bank and the
 number and any designation or other reference attributed to the Account;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 an Account Security has been duly executed and delivered by the
 Borrower in favour of the Security Agent;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any notice required by the Account Security to be given to an Account
 Bank has been given to, and acknowledged by, the Account Bank in the form
 required by the relevant Account Security; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the Agent, or its duly authorised representative, has received such
 documents and evidence it may require in relation to the Account and the
 Account Security including documents and evidence of the type referred to in
 Schedule 3 in relation to the Account and the relevant Account Security.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.5.2

 	
  

 	
 The rates of payment of interest and other terms regulating any
 Account will be a matter of separate agreement between the Borrower and an
 Account Bank. If an Account is a fixed term deposit account, the Borrower may
 select the terms of deposits until the relevant Account Security has become
 enforceable and the Security Agent directs otherwise.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.5.3

 	
  

 	
 The Borrower shall not close any Account or alter the terms of any
 Account from those in force at the time it is designated for the purposes of
 this clause 26 or waive any of its rights in relation to an Account except
 with approval.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.5.4

 	
  

 	
 The Borrower shall deposit with the Security Agent all certificates
 of deposit, receipts or other instruments or securities relating to any Account,
 notify the Security Agent of any claim or notice relating to an Account from
 any other party and provide the Agent with any other information it may
 request concerning any Account.

 
	
  

 	
  

 	
  

 	
  

 
	
 26.5.5

 	
  

 	
 Each of the Agent and the Security Agent each agrees that if it is an
 Account Bank in respect of an Account then there will be no restrictions on
 charging that Account as contemplated by this Agreement and it shall not
 (except with the approval of the Lenders) exercise any right of combination,
 consolidation or set-off which it may have in respect of that Account in a
 manner adverse to the rights of the other Finance Parties.

 
	
  

 	
  

 	
  

 	
  

 
	
 27

 	
  

 	
 Business
 restrictions

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except as otherwise approved, the Borrower undertakes that this
 clause 27 will be complied with by and in respect of each Obligor and their
 Affiliates (to the extent applicable) throughout the Facility Period.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.1

 	
  

 	
 General negative pledge

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not permit any Security Interest to exist, arise
 or be created or extended over all or any part of its assets except for
 Permitted Security Interests,

 

62

	
  

 	
  

 	
  

 	
  

 
	
 27.2

 	
  

 	
 Transactions similar to security

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (Without prejudice to clauses 27.3 (Financial Indebtedness)
 and 27.6 (Disposals)),
 the Borrower shall not:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 sell, transfer or otherwise dispose of any of its assets on terms
 whereby that asset is or may be leased to, or re-acquired by, any Affiliate
 other than pursuant to disposals permitted under clause 27.6 (Disposals);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 sell, transfer, factor or otherwise dispose of any of its
 receivables;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 enter into any arrangement under which money or the benefit of a bank
 or other account may be applied, set-off or made subject to a combination of
 accounts; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 enter into any other preferential arrangement having a similar
 effect.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.3

 	
  

 	
 Financial Indebtedness

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not incur or permit to exist, any Financial
 Indebtedness owed by it to anyone else except:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Financial Indebtedness incurred under the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 Financial Indebtedness owed to another Obligor which is subordinated
 in an approved manner; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Financial Indebtedness permitted under clause 27.4 (Guarantees).

 
	
  

 	
  

 	
  

 	
  

 
	
 27.4

 	
  

 	
 Guarantees

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not give or permit to exist, any guarantee by it
 in respect of indebtedness of any person or allow any of its indebtedness to
 be guaranteed by anyone else except:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 guarantees of obligations of Affiliates that are not Financial
 Indebtedness or obligations prohibited by any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 guarantees in favour of trade creditors of the Borrower given in the
 ordinary course of its business or in order to avoid the creation of, or to
 release, a Permitted Maritime Lien; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 guarantees which are Financial Indebtedness permitted under clause
 27.3 (Financial
 Indebtedness).

 
	
  

 	
  

 	
  

 	
  

 
	
 27.5

 	
  

 	
 Bank accounts and other financial
 transactions

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 maintain any bank accounts with a bank or financial institution
 except for the Accounts;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 hold cash in any account (other than in an Account); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 be party to any banking or financial transaction, whether on or off
 balance sheet, that is not expressly permitted under this clause 27 (Business
 restrictions).

 
	
  

 	
  

 	
  

 	
  

 
	
 27.6

 	
  

 	
 Disposals

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not enter into a single transaction or a series of
 transactions, whether related or not and whether voluntarily or
 involuntarily, to dispose of any asset except for any of

 

63

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the following disposals so long as they are
 not prohibited by any other provision of the Finance Documents:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 disposals of assets made in (and on terms reflecting) the ordinary
 course of trading of the disposing entity;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 disposals of obsolete assets, or assets which are no longer required
 for the purpose of the business of the Borrower, in each case for cash on
 normal commercial terms and on an arm’s length basis; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the application of cash or cash equivalents in the acquisition of
 assets or services in the ordinary course of its business.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.7

 	
  

 	
 Contracts and arrangements with Affiliates

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No Obligor shall be a party to any arrangement or contract with any
 of its Affiliates unless such arrangement or contract is on an arm’s length basis.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.8

 	
  

 	
 Subsidiaries

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not establish or acquire a company or other
 entity.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.9

 	
  

 	
 Acquisitions and investments

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not, without approval, acquire any person,
 business, assets or liabilities or make any investment in any person or
 business or enter into any joint-venture arrangement except:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 acquisitions of assets in the ordinary course of business (not being
 new businesses or vessels);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the incurrence of liabilities in the ordinary course of its business;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any loan or credit not otherwise prohibited under this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 pursuant to any Building Contract Documents to which it is party.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.10

 	
  

 	
 Reduction of capital

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not redeem or purchase or otherwise reduce any of
 its equity or any other share capital or any warrants or any uncalled or
 unpaid liability in respect of any of them or reduce the amount (if any) for
 the time being standing to the credit of its share premium account or capital
 redemption or other undistributable reserve in any manner.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.11

 	
  

 	
 Increase in capital

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not (and it is hereby undertaken by the Borrower
 that none of the Guarantors shall) issue shares or other equity interests to
 anyone in a manner that permits a Change of Control.

 
	
  

 	
  

 	
  

 	
  

 
	
 27.12

 	
  

 	
 Distributions and other payments

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall not:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 declare or pay (including by way of set-off, combination of accounts
 or otherwise) any dividend or redeem or make any other distribution or
 payment (whether in cash or in specie), including any interest and/or unpaid
 dividends, in respect of its equity or any other share capital or any
 warrants for the time being in issue; or

 

64

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 make any payment (including by way of set-off, combination of
 accounts or otherwise) by way of interest, or repayment, redemption, purchase
 or other payment, in respect of any shareholder loan, loan stock or similar
 instrument;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 except to its Holding Company and provided it is approved and no
 Default is continuing.

 
	
  

 	
  

 	
  

 	
  

 
	
 28

 	
  

 	
 Events of Default

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of the events or circumstances set out in clauses 28.1 to 28.20
 is an Event of Default.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.1

 	
  

 	
 Non-payment

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 An Obligor does not pay on the due date any amount payable pursuant
 to a Finance Document at the place at and in the currency in which it is
 expressed to be payable provided however that no Event of Default shall occur
 if a Disruption Event has occurred and such payment is made within three
 Business Days of the due date.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.2

 	
  

 	
 Value of security

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower does not comply with clause 24 (Minimum security value).

 
	
  

 	
  

 	
  

 	
  

 
	
 28.3

 	
  

 	
 Insurance

 
	
  

 	
  

 	
  

 	
  

 
	
 28.3.1

 	
  

 	
 The Insurances of the Ship are not placed and kept in force in the
 manner required by clause 23 (Insurance).

 
	
  

 	
  

 	
  

 	
  

 
	
 28.3.2

 	
  

 	
 Any insurer either:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 cancels any such Insurances and such Insurances are not immediately
 replaced by the Borrower to the full satisfaction of the Lenders; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 disclaims liability under them by reason of any mis-statement or
 failure or default by any person.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.4

 	
  

 	
 Other obligations

 
	
  

 	
  

 	
  

 	
  

 
	
 28.4.1

 	
  

 	
 An Obligor does not comply with any provision of the Finance
 Documents (other than those referred to in clauses 28.1 (Non-payment), 28.2 (Value of
 security) and 28.3 (Insurance)).

 
	
  

 	
  

 	
  

 	
  

 
	
 28.4.2

 	
  

 	
 No Event of Default under clause 28.4.1 above will occur if the Agent
 (acting on the instructions of the Lenders) considers that the failure to
 comply is capable of remedy and the failure is remedied within ten Business
 Days of the Agent giving notice to the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.5

 	
  

 	
 Misrepresentation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any representation or statement made or deemed to be made by an
 Obligor in the Finance Documents or any other document delivered by or on
 behalf of any Obligor under or in connection with any Finance Document
 (including, without limitation, the Counter Guarantor Representations Letter)
 is or proves to have been incorrect or misleading in any material respect
 when made or deemed to be made.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.6

 	
  

 	
 Cross default

 
	
  

 	
  

 	
  

 	
  

 
	
 28.6.1

 	
  

 	
 Any Financial Indebtedness of any Obligor is not paid when due nor
 within any originally applicable grace period.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.6.2

 	
  

 	
 Any Financial Indebtedness of any Obligor 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).

 

65

	
  

 	
  

 	
  

 	
  

 
	
 28.6.3

 	
  

 	
 The counterparty to a Treasury Transaction entered into by any
 Obligor becomes entitled to terminate that Treasury Transaction early by
 reason of an event of default (however described).

 
	
  

 	
  

 	
  

 	
  

 
	
 28.6.4

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
 28.6.5

 	
  

 	
 No Event of Default will occur under this clause 28.6 if the
 aggregate amount of Financial Indebtedness falling within clauses 28.6.1 to
 28.6.4 above is less than $5,000,000 in respect of the Counter Guarantor
 and/or less than $500,000 in respect of GasLog.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.7

 	
  

 	
 Insolvency

 
	
  

 	
  

 	
  

 	
  

 
	
 28.7.1

 	
  

 	
 An Obligor or the Counter Guarantor Subsidiary is unable or admits
 inability to pay its debts as they fall due, suspends making payments on any
 of its debts or, by reason of actual financial difficulties, commences negotiations
 with one or more of its creditors with a view to rescheduling any of its
 indebtedness.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.7.2

 	
  

 	
 The value of the assets of any Obligor or the Counter Guarantor
 Subsidiary is less than its liabilities (taking into account contingent and
 prospective liabilities).

 
	
  

 	
  

 	
  

 	
  

 
	
 28.7.3

 	
  

 	
 A moratorium is declared in respect of any indebtedness of any
 Obligor or the Counter Guarantor Subsidiary. If a moratorium occurs, the
 ending of the moratorium will not remedy any Event of Default caused by that
 moratorium.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.8

 	
  

 	
 Insolvency proceedings

 
	
  

 	
  

 	
  

 	
  

 
	
 28.8.1

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the suspension of payments, a moratorium of any indebtedness,
 winding-up, dissolution, administration or reorganisation (by way of
 voluntary arrangement, scheme of arrangement or otherwise) of any Obligor or
 the Counter Guarantor Subsidiary;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 a composition, compromise, assignment or arrangement with any
 creditor of any Obligor or the Counter Guarantor Subsidiary;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the appointment of a liquidator, receiver, administrator,
 administrative receiver, compulsory manager or other similar officer in
 respect of any Obligor or the Counter Guarantor Subsidiary or any of its
 assets (including the directors of any Obligor or the Counter Guarantor
 Subsidiary requesting a person to appoint any such officer in relation to it
 or any of its assets); or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 enforcement of any Security Interest over any assets of any Obligor
 or the Counter Guarantor Subsidiary,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or any analogous procedure or step is taken in any jurisdiction.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.8.2

 	
  

 	
 Clause 28.8.1 shall not apply to any winding-up petition (or
 analogous procedure or step) which is frivolous or vexatious and is
 discharged, stayed or dismissed within seven days of commencement or, if
 earlier, the date on which it is advertised.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.9

 	
  

 	
 Creditors’ process

 
	
  

 	
  

 	
  

 	
  

 
	
 28.9.1

 	
  

 	
 Any expropriation, attachment, sequestration, distress, execution or
 analogous process affects any asset or assets of any Obligor (having an
 aggregate value of $5,000,000 in respect of the 

 

66

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Counter Guarantor and $500,000 in respect of GasLog) and is not
 discharged within seven days.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.9.2

 	
  

 	
 Any judgment or order (for an amount in excess of $5,000,000 in
 respect of the Counter Guarantor and $500,000 in respect of GasLog) is made
 against any Obligor and is not stayed or complied with within thirty days.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.10

 	
  

 	
 Unlawfulness and invalidity

 
	
  

 	
  

 	
  

 	
  

 
	
 28.10.1

 	
  

 	
 It is or becomes unlawful for an Obligor to perform any of its
 obligations under the Finance Documents or any Security Interest created or
 expressed to be created or evidenced by the Security Documents ceases to be
 effective.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.10.2

 	
  

 	
 Any obligation or obligations of any Obligor under any Finance Documents
 are not (subject to the Legal Reservations) or cease to be legal, valid,
 binding or enforceable and the cessation individually or cumulatively
 materially and adversely affects the interests of the Lenders under the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.10.3

 	
  

 	
 Any Finance Document or any Security Interest created or expressed to
 be created or evidenced by the Security Documents ceases to be in full force
 and effect or is alleged by a party to it (other than a Finance Party) to be
 ineffective for any reason.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.10.4

 	
  

 	
 Any Security Document does not create legal, valid, binding and
 enforceable security over the assets charged under that Security Document or
 the ranking or priority of such security is adversely affected.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.11

 	
  

 	
 Cessation of business

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Obligor suspends or ceases to carry on (or threatens to suspend
 or cease to carry on) all or a material part of its business.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.12

 	
  

 	
 Expropriation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The authority or ability of any Obligor to conduct its business is
 limited or wholly or substantially curtailed by any seizure, expropriation,
 nationalisation, intervention, restriction or other action by or on behalf of
 any governmental, regulatory or other authority or other person in relation
 to any Obligor or any of its assets.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.13

 	
  

 	
 Repudiation and rescission of Finance
 Documents

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 An Obligor repudiates a Finance Document or evidences an intention to
 rescind a Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.14

 	
  

 	
 Litigation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any litigation, alternative dispute resolution, arbitration or administrative
 proceeding is taking place, or threatened against any Obligor or any of its
 assets, rights or revenues, and which, if adversely determined, might
 reasonably be expected to have a Material Adverse Effect.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.15

 	
  

 	
 Material Adverse Effect

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Environmental Incident or other event or circumstance or series
 of events (including any change of law) occurs which the Majority Lenders
 reasonably believe has, or is reasonably expected to have, a Material Adverse
 Effect.

 

67

	
  

 	
  

 	
  

 	
  

 
	
 28.16

 	
  

 	
 Security enforceable

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Security Interest (other than a Permitted Maritime Lien) in
 respect of Charged Property becomes enforceable.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.17

 	
  

 	
 Arrest of Ship

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Ship is arrested, confiscated, seized, taken in execution,
 impounded, forfeited, detained in exercise or purported exercise of any
 possessory lien or other claim and the Borrower fails to procure the release
 of the Ship within a period of 15 days thereafter (or such longer period as
 may be approved).

 
	
  

 	
  

 	
  

 	
  

 
	
 28.18

 	
  

 	
 Ship registration

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the registration of the Ship under the laws and
 flag of its Flag State is cancelled or terminated or, where applicable, not
 renewed or, if the Ship is only provisionally registered on the date of the
 Mortgage, the Ship is not permanently registered under such laws within 90
 days of such date.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.19

 	
  

 	
 Political risk

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Flag State or any Relevant Jurisdiction of an Obligor becomes
 involved in hostilities or civil war or there is a seizure of power in the
 Flag State or any Relevant Jurisdiction by unconstitutional means if, in any
 such case, such event, in the reasonable opinion of the Agent, has or is
 reasonably to have, a Material Adverse Effect and, within 15 days of notice
 from Agent to do so (or such longer period as may be approved), such action
 as the Agent may require to ensure that such circumstances will not have such
 an effect has not been taken by the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.20

 	
  

 	
 Charter termination

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with approval, the Charter is cancelled or rescinded or
 (except as a result of it being a Total Loss) frustrated or the Ship is
 withdrawn from service under the Charter before the time the Charter was
 scheduled to expire provided however that no Event of Default shall occur
 under this clause if (a) within five Business Days of such cancellation,
 rescission, frustration or withdrawal the Borrower shall have paid the sum of
 $20,000,000 to the Reserve Account (which may, notwithstanding clause 26.4 (Reserve
 Account) only be released if approved) and (b) within six months
 after such cancellation, rescission, frustration or withdrawal the Borrower
 shall have entered into an approved charter commitment and executed a
 Security Interest in respect of such charter commitment in an approved form
 and provided any conditions precedent of the nature described in Schedule 3
 required by the Agent.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.21

 	
  

 	
 Change of Control

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A Change of Control occurs.

 
	
  

 	
  

 	
  

 	
  

 
	
 28.22

 	
  

 	
 Acceleration

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 cancel the Total Commitments at which time they shall immediately be
 cancelled; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

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

 

68

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 declare that all or part of the Loan be payable on demand, at which
 time it shall immediately become payable on demand by the Agent on the
 instructions of the Lenders; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 declare that no withdrawals be made from any Account; and/or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 exercise or direct the Security Agent to exercise any or all of its
 rights, remedies, powers or directions under the Finance Documents.

 

69

SECTION 7 - CHANGES TO PARTIES

	
  

 	
  

 	
  

 	
  

 
	
 29

 	
  

 	
 Changes to the Lenders

 
	
  

 	
  

 	
  

 
	
 29.1 

 	
  

 	
 Assignments and transfers by the Lenders 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Subject to this clause 29, a Lender (the “Existing Lender”) may
 assign any of its rights to another bank or financial institution or to a
 trust, fund or other entity which is regularly engaged in or established for
 the purpose of making, purchasing or investing in loans, securities or other
 financial assets (the “New Lender”).

 
	
  

 	
  

 	
  

 
	
 29.2 

 	
  

 	
 Conditions of assignment 

 
	
  

 	
  

 	
  

 
	
 29.2.1

 	
  

 	
 The consent of the Borrower is required for an assignment by a
 Lender, unless the assignment is to another Lender or an Affiliate of a
 Lender or an Event of Default is continuing. The Agent will immediately
 advise the Borrower of the assignment.

 
	
  

 	
  

 	
  

 
	
 29.2.2

 	
  

 	
 The Borrower’s consent may not be unreasonably withheld or delayed
 and will be deemed to have been given five Business Days after the Lender has
 requested consent unless consent is expressly refused within that time. The
 Borrower shall not be entitled to refuse or withhold consent solely because
 an assignment may result in an increase to the Mandatory Cost.

 
	
  

 	
  

 	
  

 
	
 29.2.3

 	
  

 	
 An assignment will only be effective:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 on receipt by the Agent of written confirmation from the New Lender
 (in form and substance satisfactory to the Agent) that the New Lender will
 assume the same obligations to the other Finance Parties and the other
 Finance Parties as it would have been under if it was an Original Lender;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 on the New Lender entering into any documentation required for it to
 accede as a party to any Security Document to which the Original Lender is a
 party in its capacity as a Lender;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 if at the time when an assignment takes effect more than one
 Utilisation is outstanding, the assignment of an Existing Lender’s
 participation in the Utilisations (if any) under the Facility shall take
 effect in respect of the same fraction of each such Utilisation;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 on the performance by the Agent of all “know your customer” or other
 checks relating to any person that it is required to carry out in relation to
 such assignment to a New Lender, the completion of which the Agent shall
 promptly notify to the Lender and the New Lender; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 if that Existing Lender assigns equal fractions of its Commitment and
 participation in the Utilisations (if any) under the Facility.

 
	
  

 	
  

 	
  

 
	
 29.2.4

 	
  

 	
 Each New Lender, by executing the relevant Transfer Certificate,
 confirms, for the avoidance of doubt, that the Agent has authority to execute
 on its behalf any amendment or waiver that has been approved by or on behalf
 of the requisite Lender or Lenders in accordance with this Agreement on or
 prior to the date on which the transfer becomes effective in accordance with
 this Agreement and that it is bound by that decision to the same extent as
 the Existing Lender would have been had it remained a Lender.

 
	
  

 	
  

 	
  

 
	
 29.3

 	
  

 	
 Fee

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The New Lender shall, on the date upon which an assignment takes
 effect, pay to the Agent (for its own account) a fee of $3,000.

 

70

	
  

 	
  

 	
  

 	
  

 
	
 29.4 

 	
  

 	
 Limitation of responsibility of Existing Lenders 

 
	
  

 	
  

 	
  

 
	
 29.4.1

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the legality, validity, effectiveness, adequacy or enforceability of
 the Finance Documents or any other documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the financial condition of any Obligor;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the performance and observance by any Obligor or any other person of
 its obligations under the Finance Documents or any other documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the application of any Basel 2 Regulation to the transactions
 contemplated by the Finance Documents; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 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.

 
	
  

 	
  

 	
  

 
	
 29.4.2

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 has made (and shall continue to make) its own independent
 investigation and assessment of:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 the financial condition and affairs of the Obligors and their related entities in connection with its
participation in this Agreement; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 the application of any Basel 2 Regulation to the transactions
 contemplated by the Finance Documents,

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 will continue to make its own independent appraisal of the
 application of any Basel 2 Regulation to the transactions contemplated by the
 Finance Documents; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

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

 
	
  

 	
  

 	
  

 	
  

 
	
 29.4.3

 	
  

 	
 Nothing in any Finance Document obliges an Existing Lender to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 accept a re-assignment from a New Lender of any of the rights
 assigned under this clause 29 (Changes to the Lenders); or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 support any losses directly or indirectly incurred by the New Lender
 by reason of the non-performance by any Obligor of its obligations under the
 Finance Documents or by reason of the application of any Basel 2 Regulation
 to the transactions contemplated by the Finance Documents or otherwise.

 
	
  

 	
  

 	
  

 
	
 29.5

 	
  

 	
 Procedure for transfer

 
	
  

 	
  

 	
  

 
	
 29.5.1

 	
  

 	
 Subject to the conditions set out in clause 29.2 (Conditions
 of assignment) an assignment is effected in accordance with clause
 29.5.2 below when (a) the Agent executes an otherwise duly completed Transfer
 Certificate and (b) the Agent executes any document required under 

 

71

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 clause 29.2.3
 which it may be necessary for it to execute in each case delivered to it by
 the Existing Lender and the New Lender duly executed by them and, in the case
 of any such other document, any other relevant person. The Agent shall, as
 soon as reasonably practicable after receipt by it of a Transfer Certificate and
 any such other document each duly completed, 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 and such other document.
 The Obligors and the other Finance Parties irrevocably authorise the Agent to
 execute any Transfer Certificate on their behalf without any consultations
 with them.

 
	
  

 	
  

 	
  

 	
  

 
	
 29.5.2

 	
  

 	
 On the Transfer Date:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to the extent that in the Transfer Certificate the Existing Lender
 seeks to be released from its obligations under the Finance Documents, the
 Existing Lender shall be released from further obligations towards the
 Obligors and the other Finance Parties under the Finance Documents and rights
 of the Obligors and the other Finance Parties against the Existing Lender
 under the Finance Documents shall be cancelled (being the Discharged
 Obligations) (but the obligations owed by the Obligors under the
 Finance Documents shall not be released);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the New Lender shall assume obligations towards each of the Obligors
 who are a Party and/or the Obligors and the other Finance Parties shall
 acquire rights against the New Lender which differ from the Discharged Rights
 and Obligations only insofar as the New Lender has assumed and/or the
 Obligors and the other Finance Parties acquired the same in place of the
 Existing Lender;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the other Finance Parties and the New Lender shall acquire the same
 rights and assume the same obligations between themselves 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 Security Agent, Existing Lender and the other Finance Parties
 shall each be released from further obligations to each other under the
 Finance Documents; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 the New Lender shall become a Party to the Finance Documents as a
 “Lender” for the purposes of all the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 29.6

 	
  

 	
 Copy of Transfer Certificate to Borrower

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall, as soon as reasonably practicable after it has
 executed a Transfer Certificate and any other document required under clause
 29.2.3, send a copy of that Transfer Certificate and such documents to the
 Borrower.

 
	
  

 	
  

 	
  

 
	
 29.7

 	
  

 	
 Disclosure of information

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any Lender may disclose to any of its Affiliates and, in relation to
 (a) and (b) below, with the consent of the Borrower (such consent not to be
 unreasonably withheld or delayed), to any other person:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to (or through) whom that Lender assigns (or may potentially assign)
 all or any of its rights and obligations under the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 with (or through) whom that Lender enters into (or may potentially
 enter into) any sub-participation in relation to, or any other transaction
 under which payments are to be made by reference to, the Finance Documents or
 any Obligor; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 to whom, and to the extent that, information is required to be
 disclosed by any applicable law or regulation,

 

72

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and any Finance Party may disclose to a rating agency or its
 professional advisers or (with the consent of the Borrower) any other person,
 any information about any Obligor, the Group and the Finance Documents as
 that Finance Party shall consider appropriate.

 
	
  

 	
  

 	
  

 
	
 30

 	
  

 	
 Changes to the
 Obligors

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 

73

SECTION 8 - THE FINANCE PARTIES

	
  

 	
  

 	
  

 	
  

 
	
 31

 	
  

 	
 Roles of Agent,
 Security Agent and Arranger

 
	
  

 	
  

 	
  

 
	
 31.1

 	
  

 	
 Appointment of the Agent

 
	
  

 	
  

 	
  

 
	
 31.1.1

 	
  

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

 
	
  

 	
  

 	
  

 
	
 31.1.2

 	
  

 	
 Each such other Finance Party authorises the Agent:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to exercise the rights, powers, authorities and discretions
 specifically given to the Agent under or in connection with the Finance
 Documents together with any other incidental rights, powers, authorities and
 discretions; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to execute each of the Security Documents and all other documents
 that may be approved by the Lenders for execution by it.

 
	
  

 	
  

 	
  

 
	
 31.2

 	
  

 	
 Duties of the Agent

 
	
  

 	
  

 	
  

 
	
 31.2.1

 	
  

 	
 The Agent shall promptly forward to a Party the original or a copy of
 any document which is delivered to the Agent for that Party by any other
 Party.

 
	
  

 	
  

 	
  

 
	
 31.2.2

 	
  

 	
 Without prejudice to clause 29.6 (Copy of Transfer Certificate to Borrower),
 clause 31.2.1 shall not apply to any Transfer Certificate.

 
	
  

 	
  

 	
  

 
	
 31.2.3

 	
  

 	
 Except where a Finance Document specifically provides otherwise, the
 Agent is not obliged to review or check the adequacy, accuracy or
 completeness of any document it forwards to another Party.

 
	
  

 	
  

 	
  

 
	
 31.2.4

 	
  

 	
 If the 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.

 
	
  

 	
  

 	
  

 
	
 31.2.5

 	
  

 	
 If the Agent is aware of the non-payment of any principal, interest,
 commitment fee or other fee payable to a Finance Party (other than the Agent
 or an Arranger or the Security Agent for their own account) under this
 Agreement it shall promptly notify the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 31.2.6

 	
  

 	
 The Agent’s duties under the Finance Documents are solely mechanical
 and administrative in nature.

 
	
  

 	
  

 	
  

 
	
 31.3

 	
  

 	
 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 or the transactions contemplated by the
 Finance Documents.

 
	
  

 	
  

 	
  

 
	
 31.4

 	
  

 	
 No fiduciary duties

 
	
  

 	
  

 	
  

 
	
 31.4.1

 	
  

 	
 Nothing in this Agreement constitutes the Agent or an Arranger as a
 trustee or fiduciary of any other person.

 
	
  

 	
  

 	
  

 
	
 31.4.2

 	
  

 	
 None of the Agent, the Security Agent or any Arranger 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 or have any obligations to the other
 Finance Parties beyond those expressly stated in the Finance Documents.

 

74

	
  

 	
  

 	
  

 	
  

 
	
 31.5

 	
  

 	
 Business with the Group

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent, the Security Agent and any Arranger may accept deposits
 from, lend money to and generally engage in any kind of banking or other
 business with any Obligor or their Affiliates.

 
	
  

 	
  

 	
  

 
	
 31.6

 	
  

 	
 Rights and discretions of the Agent

 
	
  

 	
  

 	
  

 
	
 31.6.1

 	
  

 	
 The Agent may rely on:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 any representation, notice or document believed by it to be genuine,
 correct and appropriately authorised; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any statement made by a director, authorised signatory or employee of
 any person regarding any matters which may reasonably be assumed to be within
 his or her knowledge or within his or her power to verify.

 
	
  

 	
  

 	
  

 	
  

 
	
 31.6.2

 	
  

 	
 The Agent may assume (unless it has received notice to the contrary
 in its capacity as agent for the other Finance Parties) that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 no Default has occurred (unless it has actual knowledge of a Default
 arising under clause 28.1 (Non-payment));

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 any right, power, authority or discretion vested in any Party or the
 Majority Lenders has not been exercised; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 any notice or request made by the Borrower (other than a Utilisation
 Request or Selection Notice) is made on behalf of and with the consent and
 knowledge of all the Obligors.

 
	
  

 	
  

 	
  

 
	
 31.6.3

 	
  

 	
 The Agent may engage, pay for and rely on the advice or services of
 any lawyers, accountants, surveyors or other experts in the conduct of its
 obligations and responsibilities under the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 31.6.4

 	
  

 	
 The Agent may act in relation to the Finance Documents through its
 personnel and agents.

 
	
  

 	
  

 	
  

 
	
 31.6.5

 	
  

 	
 The Agent may disclose to any other Party any information it
 reasonably believes it has received as agent under this Agreement.

 
	
  

 	
  

 	
  

 
	
 31.6.6

 	
  

 	
 The Agent is not obliged to 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 purposes of clause 10.2.1(b) (Market Disruption).

 
	
  

 	
  

 	
  

 
	
 31.6.7

 	
  

 	
 Notwithstanding any other provision of any Finance Document to the
 contrary, neither the Agent nor any Arranger 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. The Agent and any Arranger may do anything which in its
 opinion, is necessary or desirable to comply with any law or regulation of
 any jurisdiction.

 
	
  

 	
  

 	
  

 
	
 31.6.8

 	
  

 	
 Without prejudice to the generality of clause 31.6.7, the Agent shall
 be entitled (but not obliged) to disclose the identity of a Defaulting Lender
 to the other Finance Parties and the Borrower.

 
	
  

 	
  

 	
  

 
	
 31.7

 	
  

 	
 Lenders’ instructions

 
	
  

 	
  

 	
  

 
	
 31.7.1

 	
  

 	
 Unless a contrary indication appears in a Finance Document, the Agent
 shall:

 

75

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 exercise any right, power, authority or discretion vested in it as
 Agent (including giving instructions to the Security Agent) in accordance
 with any instructions given to it by the Lenders (or, if so instructed by the
 Lenders, refrain from exercising any right, power, authority or discretion
 vested in it as Agent); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 not be liable for any act (or omission) if it acts (or refrains from
 taking any action) in accordance with an instruction of the Lenders.

 
	
  

 	
  

 	
  

 
	
 31.7.2

 	
  

 	
 Unless a contrary indication appears in a Finance Document, any
 instructions given by the Lenders to the Agent (in relation to any right,
 power, authority or discretion vested in it as Agent) shall be binding on all
 the Finance Parties (other than the Security Agent).

 
	
  

 	
  

 	
  

 
	
 31.7.3

 	
  

 	
 The Agent may refrain from acting in accordance with the instructions
 of the Majority Lenders (if applicable in accordance with the Finance
 Documents) 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.

 
	
  

 	
  

 	
  

 
	
 31.7.4

 	
  

 	
 In the absence of, or while awaiting, instructions from the Majority
 Lenders (if applicable in accordance with the Finance Documents) or, if
 appropriate, the Lenders, the Agent may act (or refrain from taking action)
 as it considers to be in the best interest of the Finance Parties.

 
	
  

 	
  

 	
  

 
	
 31.7.5

 	
  

 	
 The 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 clause 31.7.5 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 Documents.

 
	
  

 	
  

 	
  

 
	
 31.7.6

 	
  

 	
 Neither the Agent nor any Arranger shall be obliged to request any
 certificate, opinion or other information under clause 18 (Information
 undertakings) unless so required in writing by a Lender, in which
 case the Agent shall promptly make the appropriate request of the Borrower if
 such request would be in accordance with the terms of this Agreement.

 
	
  

 	
  

 	
  

 
	
 31.8

 	
  

 	
 Responsibility for documentation and other
 matters

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Neither the Agent nor any Arranger:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 is responsible for the adequacy, accuracy and/or completeness of any
 information (whether oral or written) supplied by the Agent, any Arranger, an
 Obligor or any other person given in or in connection with any Finance
 Document or the transactions contemplated in the Finance Documents or of any
 representations in any Finance Document or of any copy of any document
 delivered under any Finance Document (including, without limitation, the
 Counter Guarantor Representations Letter);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 is responsible for the legality, validity, effectiveness, adequacy or
 enforceability of any Finance Document or any Charter Document or Building
 Contract Document or any other agreement, arrangement or document entered
 into, made or executed in anticipation of or in connection with any Finance
 Document or any Charter Document or Building Contract Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 is responsible for 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;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 is responsible for the application of any Basel 2 Regulation to the
 transactions contemplated by the Finance Documents;

 

76

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 is responsible for any loss to the Trust Property arising in
 consequence of the failure, depreciation or loss of any Charged Property or
 any investments made or retained in good faith or by reason of any other
 matter or thing;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 is obliged to account to any person for any sum or the profit element
 of any sum received by it for its own account;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 is responsible for the failure of any Obligor or any other party to
 perform its obligations under any Finance Document or Charter Document or
 Building Contract Document or the financial condition of any such person;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 is responsible to ascertain whether all deeds and documents which
 should have been deposited with it (or the Security Agent) under or pursuant
 to any of the Security Documents have been so deposited;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 is responsible to investigate or make any enquiry into the title of
 any Obligor to any of the Charged Property or any of its other property or
 assets;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (j)

 	
 is responsible for the failure to register any of the Security
 Documents with the Registrar of Companies or any other public office;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (k)

 	
 is responsible for the failure to register any of the Security
 Documents in accordance with the provisions of the documents of title of any
 Obligor to any of the Charged Property;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (l)

 	
 is responsible for the failure to take or require any Obligor to take
 any steps to render any of the Security Documents effective as regards
 property or assets outside England or Wales or to secure the creation of any
 ancillary charge under the laws of the jurisdiction concerned; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (m)

 	
 is (unless it is the same entity as the Security Agent) responsible
 on account of the failure of the Security Agent to perform or discharge any
 of its duties or obligations under the Security Documents.

 
	
  

 	
  

 	
  

 
	
 31.9

 	
  

 	
 Exclusion
 of liability

 
	
  

 	
  

 	
  

 
	
 31.9.1

 	
  

 	
 Without limiting clause 31.9.2 (and without prejudice to the provisions
 of clause 34.9 (Disruption to Payment Systems etc.)), the Agent will not
 be liable for any action taken by it under or in connection with any Finance
 Document, unless directly caused by its gross negligence or wilful
 misconduct.

 
	
  

 	
  

 	
  

 
	
 31.9.2

 	
  

 	
 No Party (other than the Agent) may take any proceedings against any
 officer, employee or agent of the Agent in respect of any claim it might have
 against the Agent or in respect of any act or omission of any kind by that
 officer, employee or agent in relation to any Finance Document any officer,
 employee or agent of the Agent may rely on this clause subject to clause 1.3
 and the provisions of the Third Parties Act.

 
	
  

 	
  

 	
  

 
	
 31.9.3

 	
  

 	
 The 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 Agent if the 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 Agent for that purpose.

 
	
  

 	
  

 	
  

 
	
 31.9.4

 	
  

 	
 Nothing in this Agreement shall oblige the Agent or any Arranger to
 carry out any “know your customer” or other checks in relation to any person
 on behalf of any Lender and each Lender confirms to the Agent and the
 Arrangers 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 any Arranger.

 

77

	
  

 	
  

 	
  

 
	
 31.10

 	
  

 	
 Lenders’ indemnity to the 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
 Agent, within three Business Days of demand, against any cost, loss or
 liability incurred by the Agent (otherwise than by reason of the Agent’s
 gross negligence or wilful misconduct) including the costs of any person
 engaged in accordance with clause 31.6.3 (Rights and discretions of the Agent) and
 any Receiver in acting as its agent under the Finance Documents (unless the
 Agent has been reimbursed by an Obligor pursuant to a Finance Document or out
 of the Trust Property).

 
	
  

 	
  

 	
  

 
	
 31.11

 	
  

 	
 Resignation of the Agent

 
	
  

 	
  

 	
  

 
	
 31.11.1

 	
  

 	
 The Agent may resign and appoint one of its Affiliates as successor
 by giving notice to the Lenders, the Security Agent and the Borrower.

 
	
  

 	
  

 	
  

 
	
 31.11.2

 	
  

 	
 Alternatively the Agent may resign by giving notice to the other
 Finance Parties and the Borrower, in which case the Majority Lenders (after
 consultation with the Borrower) may appoint a successor Agent acting through
 an office in the United Kingdom.

 
	
  

 	
  

 	
  

 
	
 31.11.3

 	
  

 	
 If the Majority Lenders have not appointed a successor Agent in
 accordance with clause 31.11.2 above within 20 days after notice of
 resignation was given, the Agent (after consultation with the Borrower) may
 appoint a successor Agent.

 
	
  

 	
  

 	
  

 
	
 31.11.4

 	
  

 	
 The retiring Agent shall, at its own cost, make available to the
 successor Agent such documents and records and provide such assistance as the
 successor Agent may reasonably request for the purposes of performing its
 functions as Agent under the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 31.11.5

 	
  

 	
 The Agent’s resignation notice shall only take effect upon the
 appointment of a successor.

 
	
  

 	
  

 	
  

 
	
 31.11.6

 	
  

 	
 Upon the appointment of a successor, the retiring Agent shall be
 discharged from any further obligation in respect of the Finance Documents
 but shall remain entitled to the benefit of this clause 31. Its 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.

 
	
  

 	
  

 	
  

 
	
 31.11.7

 	
  

 	
 After consultation with the Borrower, the Majority Lenders may, by
 notice to the Agent, require it to resign in accordance with clause 31.11.2.
 In this event, the Agent shall resign in accordance with clause 31.11.2.

 
	
  

 	
  

 	
  

 
	
 31.12

 	
  

 	
 Confidentiality

 
	
  

 	
  

 	
  

 
	
 31.12.1

 	
  

 	
 In acting as agent for the Finance Parties, the Agent shall be
 regarded as acting through its department, division or team directly
 responsible for the management of the Finance Documents which shall be
 treated as a separate entity from any other of its divisions, departments or
 teams.

 
	
  

 	
  

 	
  

 
	
 31.12.2

 	
  

 	
 If information is received by another division or department of the
 Agent, it may be treated as confidential to that division or department and
 the Agent shall not be deemed to have notice of it.

 
	
  

 	
  

 	
  

 
	
 31.12.3

 	
  

 	
 Notwithstanding any other provision of any Finance Document to the
 contrary, neither the Agent, nor any Arranger is obliged to disclose to any
 other person (a) any confidential information or (b) 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.

 

78

	
  

 	
  

 	
  

 	
  

 
	
 31.13

 	
  

 	
 Relationship with the Lenders

 
	
  

 	
  

 	
  

 
	
 31.13.1

 	
  

 	
 The Agent may treat each Lender as a Lender, entitled to payments
 under this Agreement and acting through its Facility Office unless it has
 received not less than five Business Days prior notice from that Lender to
 the contrary in accordance with the terms of this Agreement.

 
	
  

 	
  

 	
  

 
	
 31.13.2

 	
  

 	
 Each Lender shall supply the Agent with any information required by
 the Agent in order to calculate the Mandatory Cost in accordance with
 Schedule 6 (Mandatory Cost formulae).

 
	
  

 	
  

 	
  

 
	
 31.13.3

 	
  

 	
 Each Lender shall supply the Agent with any information that the
 Agent may reasonably specify as being necessary or desirable to enable the
 Agent or the Security Agent to perform its functions as Agent or Security
 Agent. Each Lender shall deal with the Security Agent exclusively through the
 Agent and shall not deal directly with the Security Agent.

 
	
  

 	
  

 	
  

 
	
 31.14

 	
  

 	
 Credit appraisal by the Lenders

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Without affecting the responsibility of any Obligor for information
 supplied by it or on its behalf in connection with any Finance Document, each
 Lender confirms to each other Finance Party 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 including but not limited to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the financial condition, status and nature of each Obligor;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the legality, validity, effectiveness, adequacy or enforceability of
 any Finance Document or Charter Document or Building Contract Document and
 any other agreement, arrangement or document entered into, made or executed
 in anticipation of, under or in connection with any Finance Document or
 Charter Document or Building Contract Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the application of any Basel 2 Regulation to the transactions
 contemplated by the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 whether any Finance Party has recourse, and the nature and extent of
 that recourse, against any Party or any of its respective assets under or in
 connection with any Finance Document, the transactions contemplated by the
 Finance Documents or any other agreement, arrangement or document entered
 into, made or executed in anticipation of, under or in connection with any
 Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 the adequacy, accuracy and/or completeness of any information
 provided by the Agent, any Party or by any other person under or in
 connection with any Finance Document or Charter Document or Building Contract
 Document, the transactions contemplated by the Finance 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 Charter
 Document or Building Contract Document; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 the right of title of any person to, or the value or sufficiency of,
 any part of the Charged Property, the priority of the Security Documents or
 the existence of any Security Interest affecting the Charged Property.

 
	
  

 	
  

 	
  

 	
  

 
	
 31.15

 	
  

 	
 Reference Banks

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If a Reference Bank (or, if a Reference Bank is not a Lender, the
 Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall
 (in consultation with the Borrower) appoint another Lender or an Affiliate of
 a Lender to replace that Reference Bank.

 

79

	
  

 	
  

 	
  

 	
  

 
	
 31.16

 	
  

 	
 Agent’s management time

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any amount payable to the Agent under clause 14.3 (Indemnity
 to the Agent and the Security Agent), clause 16 (Costs and
 expenses) and clause 31.10 (Lenders’ indemnity to the Agent) shall
 include the cost of utilising the Agent’s management time or other resources
 and will be calculated on the basis of such reasonable daily or hourly rates
 as the Agent may notify to the Borrower and the Lenders, and is in addition
 to any fee paid or payable to the Agent under clause 11 (Fees).

 
	
  

 	
  

 	
  

 
	
 31.17

 	
  

 	
 Deduction from amounts payable by the Agent

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If any Party owes an amount to the Agent under the Finance Documents
 the Agent may, after giving notice to that Party, deduct an amount not
 exceeding that amount from any payment to that Party which the 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.

 
	
  

 	
  

 	
  

 
	
 31.18

 	
  

 	
 Common parties

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Although the Agent and the Security Agent may from time to time be
 the same entity, that entity will have entered into the Finance Documents (to
 which it is party) in its separate capacities as agent for the Finance
 Parties and (as appropriate) security agent and trustee for the Finance
 Parties. Where any Finance Document provides for the Agent or Security Agent
 to communicate with or provide instructions to the other, while they are the
 same entity, such communication or instructions will not be necessary.

 
	
  

 	
  

 	
  

 
	
 31.19

 	
  

 	
 Security Agent

 
	
  

 	
  

 	
  

 
	
 31.19.1

 	
  

 	
 Each other Finance Party appoints the Security Agent to act as its
 trustee under and in connection with the Security Documents.

 
	
  

 	
  

 	
  

 
	
 31.19.2

 	
  

 	
 Each other Finance Party authorises the Security Agent:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 to exercise the rights, powers, authorities and discretions
 specifically given to the Security Agent under or in connection with the
 Finance Documents together with any other incidental rights, powers,
 authorities and discretions; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 to execute each of the Security Documents and all other documents
 that may be approved by the Agent and/or the Majority Lenders for execution
 by it.

 
	
  

 	
  

 	
  

 	
  

 
	
 31.19.3

 	
  

 	
 The Security Agent accepts its appointment under clause 31.19 (Security
 Agent) as trustee of the Trust Property with effect from the date
 of this Agreement and declares that it holds the Trust Property on trust for
 itself, the other Finance Parties (for so long as they are Finance Parties)
 on and subject to the terms set out in clauses 31.19 - 31.27 (inclusive) and
 the Security Documents to which it is a party.

 
	
  

 	
  

 	
  

 	
  

 
	
 31.20

 	
  

 	
 Application of certain clauses to Security
 Agent

 
	
  

 	
  

 	
  

 	
  

 
	
 31.20.1

 	
  

 	
 Clauses 31.6 (Rights and discretions of the Agent),
 31.8 (Responsibility
 for documentation and other matters), 31.9 (Exclusion of liability),
 31.10 (Lenders’
 indemnity to the Agent), 31.11 (Resignation of the Agent),
 31.12 (Confidentiality),
 31.13 (Relationship
 with the Lenders), 31.14 (Credit appraisal by the Lenders) and
 31.17 (Deduction
 from amounts payable by the Agent) shall each extend so as to
 apply to the Security Agent in its capacity as such and for that purpose each
 reference to the “Agent” in these clauses shall extend to include in addition
 a reference to the “Security Agent” in its capacity as such.

 

80

	
  

 	
  

 	
  

 	
  

 
	
 31.20.2

 	
  

 	
 In addition, clause 31.11 (Resignation of the Agent) shall, for the
 purposes of its application to the Security Agent pursuant to clause 31.20.1,
 have the following additional sub-clause:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 At any time after the appointment of a successor, the retiring
 Security Agent shall do and execute all acts, deeds and documents reasonably
 required by its successor to transfer to it (or its nominee, as it may
 direct) any property, assets and rights previously vested in the retiring
 Security Agent pursuant to the Security Documents and which shall not have
 vested in its successor by operation of law. All such acts, deeds and
 documents shall be done or, as the case may be, executed at the cost of the
 retiring Security Agent (except where the Security Agent is retiring under
 clause 31.11.7 as extended to it by clause 31.20.1, in which case such costs
 shall be borne by the Lenders (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).

 
	
  

 	
  

 	
  

 
	
 31.21

 	
  

 	
 Instructions to Security Agent

 
	
  

 	
  

 	
  

 
	
 31.21.1

 	
  

 	
 Unless a contrary indication appears in a Finance Document, the
 Security Agent shall:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 exercise any right, power, authority or discretion vested in it as
 Security Agent in accordance with any instructions given to it by the Agent
 (or, if so instructed by the Agent, refrain from exercising any right, power,
 authority or discretion vested in it as Security Agent); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 not be liable for any act (or omission) if it acts (or refrains from
 taking any action) in accordance with such an instruction of the Agent (the
 Agent in each case acting on the instructions of the Majority Lenders (if
 applicable in accordance with the Finance Documents) or the Lenders.

 
	
  

 	
  

 	
  

 
	
 31.21.2

 	
  

 	
 Unless a contrary indication appears in a Finance Document, any
 instructions given by the Agent to the Security Agent in accordance with
 clause 31.21.1 will be binding on the Finance Parties.

 
	
  

 	
  

 	
  

 
	
 31.21.3

 	
  

 	
 The Security Agent may refrain from acting in accordance with the
 instructions of the Agent 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.

 
	
  

 	
  

 	
  

 
	
 31.21.4

 	
  

 	
 In the absence of, or while awaiting, instructions from the Agent,
 (including in exceptional circumstances where time does not permit the Agent
 obtaining instructions from the Lenders and urgent action is required) the
 Security Agent may act (or refrain from taking action) as it considers to be
 in the best interest of the Finance Parties.

 
	
  

 	
  

 	
  

 
	
 31.21.5

 	
  

 	
 The Security Agent is not authorised to act on behalf of another
 Finance Party (without first obtaining that Finance Party’s consent) in any
 legal or arbitration proceedings relating to any Finance Document but this is
 without prejudice to clauses 31.21.1 and 31.21.4, including the right to
 enforce the Security Documents in accordance with these clauses.

 
	
  

 	
  

 	
  

 
	
 31.22

 	
  

 	
 Order of application

 
	
  

 	
  

 	
  

 
	
 31.22.1

 	
  

 	
 The Security Agent agrees to apply the Trust Property in accordance
 with the following respective claims:

 
	
  

 	
  

 	
   

 	
  

 
	
  

 	
  

 	
 (a)

 	
 first, as to a sum equivalent to the
 amounts payable to the Security Agent under the Finance Documents (excluding
 any amounts received by the Security Agent pursuant to clause 31.10 (Lenders’
 indemnity to the Agent) as extended to the Security Agent pursuant
 to clause 31.20 (Application of certain clauses to Security Agent)),
 for the Security Agent absolutely;

 

81

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 secondly, as to a sum equivalent to the
 aggregate amount then due and owing to the other Finance Parties under the
 Finance Documents, for those Finance Parties absolutely, and pro-rata to the
 amounts owing to them under the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 thirdly, until such time as the Security
 Agent is satisfied that all obligations owed to the Finance Parties have been
 irrevocably and unconditionally discharged in full, held by the Security
 Agent on a suspense account for payment of any further amounts owing to the Finance
 Parties under the Finance Documents and further application in accordance
 with this clause 31.22.1 as and when any such amounts later fall due;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 fourthly, to such other persons (if any)
 as are legally entitled thereto in priority to the Obligors; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 fifthly, as to the balance (if any), for
 the Obligors by or from whom or from whose assets the relevant amounts were
 paid, received or recovered or other person entitled to them.

 
	
  

 	
  

 	
  

 
	
 31.22.2

 	
  

 	
 The Security Agent shall make each application as soon as is
 practicable after the relevant moneys are received by, or otherwise become
 available to, it save that (without prejudice to any other provision
 contained in any of the Security Documents) the Security Agent (acting on the
 instructions of the Agent) or any receiver or administrator may credit any
 moneys received by it to a suspense account for so long and in such manner as
 the Security Agent or such receiver or administrator may from time to time
 determine with a view to preserving the rights of the Finance Parties or any
 of them to prove for the whole of their respective claims against the
 Borrower or any other person liable.

 
	
  

 	
  

 	
  

 
	
 31.22.3

 	
  

 	
 The Security Agent shall obtain a good discharge in respect of the
 amounts expressed to be due to the other Finance Parties as referred to in
 this clause 31.22 by paying such amounts to the Agent for distribution in
 accordance with clause 34 (Payment mechanics).

 
	
  

 	
  

 	
  

 
	
 31.23

 	
  

 	
 Perpetuities

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The perpetuity period to the extent applicable to this Agreement and
 the other Finance Documents shall be 80 years from the date of this
 Agreement.

 
	
  

 	
  

 	
  

 
	
 31.24 

 	
  

 	
 Powers and duties of the Security Agent as trustee of the security 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In its capacity as trustee in relation to the Security Documents, the
 Security Agent:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 shall, without prejudice to any of the powers, discretions and
 immunities conferred upon trustees by law (and to the extent not inconsistent
 with the provisions of this Agreement or any of the Security Documents), have
 all the same powers and discretions as a natural person acting as the
 beneficial owner of such property and/or as are conferred upon the Security
 Agent by this Agreement and/or any Security Document but so that the Security
 Agent may only exercise such powers and discretions to the extent that it is
 authorised to do so by the provisions of this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 shall (subject to clause 31.22 (Order of application)) be entitled (in
 its own name or in the names of nominees) to invest moneys from time to time
 forming part of the Trust Property or otherwise held by it as a consequence
 of any enforcement of the security constituted by any Finance Document which,
 in the reasonable opinion of the Security Agent, it would not be practicable
 to distribute immediately, by placing the same on deposit in the name or
 under the control of the Security Agent as the Security Agent may think fit
 without being under any duty to diversify the same and the Security Agent
 shall not be responsible for any loss due to interest rate or 

 

82

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 exchange rate
 fluctuations except for any loss arising from the Security Agent’s gross
 negligence or wilful misconduct;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 may, in the conduct of its obligations under and in respect of the
 Security Documents (otherwise than in relation to its right to make any
 declaration, determination or decision), instead of acting personally, employ
 and pay any agent (whether being a lawyer or any other person) to transact or
 concur in transacting any business and to do or concur in doing any acts
 required to be done by the Security Agent (including the receipt and payment
 of money) and on the basis that (i) any such agent engaged in any profession
 or business shall be entitled to be paid all usual professional and other
 charges for business transacted and acts done by him or any partner or
 employee of his or her in connection with such employment and (ii) the
 Security Agent shall not be bound to supervise, or be responsible for any
 loss incurred by reason of any act or omission of, any such agent if the
 Security Agent shall have exercised reasonable care in the selection of such
 agent; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 may place all deeds and other documents relating to the Trust
 Property which are from time to time deposited with it pursuant to the
 Security Documents in any safe deposit, safe or receptacle selected by the
 Security Agent exercising reasonable care or with any firm of solicitors or
 company whose business includes undertaking the safe custody of documents
 selected by the Security Agent exercising reasonable care and may make any
 such arrangements as it thinks fit for allowing Obligors access to, or its
 solicitors or auditors possession of, such documents when necessary or
 convenient and the Security Agent shall not be responsible for any loss
 incurred in connection with any such deposit, access or possession if it has
 exercised reasonable care in the selection of a safe deposit, safe,
 receptacle or firm of solicitors or company (save that it shall take
 reasonable steps to pursue any person who may be liable to it in connection
 with such loss).

 
	
  

 	
  

 	
  

 
	
 31.25

 	
  

 	
 All enforcement action through the Security
 Agent

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 None of the other Finance Parties shall have any independent power to
 enforce any of the Security Documents or to exercise any rights, discretions
 or powers or to grant any consents or releases under or pursuant to any of
 the Security Documents or otherwise have direct recourse to the security
 and/or guarantees constituted by any of the Security Documents except through
 the Security Agent. If any Lender is a party to any Security Document it
 shall promptly upon being requested by the Agent to do so grant power of
 attorney or other sufficient authority to the Security Agent to enable the
 Security Agent to exercise any rights, discretions or powers or to grant any
 consents or releases under such Security Document.

 
	
  

 	
  

 	
  

 
	
 31.26

 	
  

 	
 Co-operation to achieve agreed priorities
 of application

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The other Finance Parties shall co-operate with each other and with
 the Security Agent and any receiver or administrator under the Security
 Documents in realising the property and assets subject to the Security
 Documents and in ensuring that the net proceeds realised under the Security
 Documents after deduction of the expenses of realisation are applied in
 accordance with clause 31.22 (Order of application).

 
	
  

 	
  

 	
  

 
	
 31.27

 	
  

 	
 Indemnity from Trust Property

 
	
  

 	
  

 	
  

 
	
 31.27.1

 	
  

 	
 In respect of all liabilities, costs or expenses for which the
 Obligors are liable under this Agreement, the Security Agent and each
 Affiliate of the Security Agent and each officer or employee of the Security
 Agent or its Affiliate (each an “Indemnified Person”) shall be entitled to
 be indemnified out of the Trust Property in respect of all liabilities,
 damages, costs, claims, charges or expenses whatsoever properly incurred or suffered
 by such Indemnified Person:

 

83

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in the execution or exercise or bona fide purported execution or
 exercise of the trusts, rights, powers, authorities, discretions and duties
 created or conferred by or pursuant to the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 as a result of any breach by an Obligor of any of its obligations
 under any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 in respect of any Environmental Claim made or asserted against an
 Indemnified Person which would not have arisen if the Finance Documents had
 not been executed; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 in respect of any matter or thing done or omitted in any way in
 accordance with the terms of the Finance Documents relating to the Trust
 Property or the provisions of any of the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 31.27.2

 	
  

 	
 The rights conferred by this clause 31.27 are without prejudice to
 any right to indemnity by law given to trustees generally and to any
 provision of the Finance Documents entitling the Security Agent or any other
 person to an indemnity in respect of, and/or reimbursement of, any
 liabilities, costs or expenses incurred or suffered by it in connection with
 any of the Finance Documents or the performance of any duties under any of
 the Finance Documents. Nothing contained in this clause 31.27 shall entitle
 the Security Agent or any other person to be indemnified in respect of any
 liabilities, damages, costs, claims, charges or expenses to the extent that
 the same arise from such person’s own gross negligence or wilful misconduct.

 
	
  

 	
  

 	
  

 
	
 31.28

 	
  

 	
 Finance Parties to provide information

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The other Finance Parties shall provide the Security Agent with such
 written information as it may reasonably require for the purposes of carrying
 out its duties and obligations under the Security Documents and, in
 particular, with such necessary directions in writing so as to enable the
 Security Agent to make the calculations and applications contemplated by
 clause 31.22 (Order of application) above and to apply amounts received
 under, and the proceeds of realisation of, the Security Documents as
 contemplated by the Security Documents, clause 34.5 (Partial payments) and
 clause 31.22 (Order of application).

 
	
  

 	
  

 	
  

 
	
 31.29

 	
  

 	
 Release to facilitate enforcement and
 realisation

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Finance Party acknowledges that pursuant to any enforcement action
 by the Security Agent (or a Receiver) carried out on the instructions of the
 Agent it may be desirable for the purpose of such enforcement and/or
 maximising the realisation of the Charged Property being enforced against,
 that any rights or claims of or by the Security Agent (for the benefit of the
 Finance Parties) and/or any Finance Parties against any Obligor and/or any
 Security Interest over any assets of any Obligor (in each case) as contained
 in or created by any Finance Document, other than such rights or claims or
 security being enforced, be released in order to facilitate such enforcement
 action and/or realisation and, notwithstanding any other provision of the
 Finance Documents, each Finance Party hereby irrevocably authorises the
 Security Agent (acting on the instructions of the Agent) to grant any such
 releases to the extent necessary to fully effect such enforcement action and
 realisation including, without limitation, to the extent necessary for such
 purposes to execute release documents in the name of and on behalf of the
 Finance Parties. Where the relevant enforcement is by way of disposal of
 shares in the Borrower, the requisite release shall include releases of all
 claims (including under guarantees) of the Finance Parties and/or the Security
 Agent against the Borrower and of all Security Interests over the assets of
 the Borrower.

 
	
  

 	
  

 	
  

 
	
 31.30

 	
  

 	
 Undertaking to pay

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each Obligor which is a Party undertakes with the Security Agent on
 behalf of the Finance Parties that it will, on demand by the Security Agent,
 pay to the Security Agent all money from 

 

84

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 time to time owing, and discharge
 all other obligations from time to time incurred, by it under or in
 connection with the Finance Documents.

 
	
  

 	
  

 	
  

 
	
 31.31

 	
  

 	
 Additional trustees

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Security Agent shall have power by notice in writing to the other
 Finance Parties and the Borrower to appoint any person approved by the
 Majority Lenders (such approval not to be unreasonably withheld or delayed)
 either to act as separate trustee or as co-trustee jointly with the Security
 Agent:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 if the Security Agent reasonably considers such appointment to be in
 the best interests of the Finance Parties;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 for the purpose of conforming with any legal requirement, restriction
 or condition in any jurisdiction in which any particular act is to be
 performed; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 for the purpose of obtaining a judgment in any jurisdiction or the
 enforcement in any jurisdiction against any person of a judgment already
 obtained,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and any person so appointed shall (subject to the provisions of this
 Agreement) have such rights (including as to reasonable remuneration),
 powers, duties and obligations as shall be conferred or imposed by the
 instrument of appointment. The Security Agent shall have power to remove any
 person so appointed. At the request of the Security Agent, the other parties
 to this Agreement shall forthwith execute all such documents and do all such
 things as may be required to perfect such appointment or removal and each
 such party irrevocably authorises the Security Agent in its name and on its
 behalf to do the same. Such a person shall accede to this Agreement as a
 Security Agent to the extent necessary to carry out their role on terms
 satisfactory to the Security Agent and (subject always to the provisions of
 this Agreement) have such trusts, powers, authorities, liabilities and
 discretions (not exceeding those conferred on the Security Agent by this
 Agreement and the other Finance Documents) and such duties and obligations as
 shall be conferred or imposed by the instrument of appointment (being no less
 onerous than would have applied to the Security Agent but for the
 appointment). The Security Agent shall not be bound to supervise, or be
 responsible for any loss incurred by reason of any act or omission of, any
 such person if the Security Agent shall have exercised reasonable care in the
 selection of such person.

 
	
  

 	
  

 	
  

 
	
 31.32

 	
  

 	
 Non-recognition of trust

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 It is agreed by all the parties to this Agreement that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 in relation to any jurisdiction the courts of which would not
 recognise or give effect to the trusts expressed to be constituted by this
 clause 31, the relationship of the Security Agent and the other Finance
 Parties shall be construed as one of principal and agent, but to the extent
 permissible under the laws of such jurisdiction, all the other provisions of
 this Agreement shall have full force and effect between the parties to this
 Agreement; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the provisions of this clause 31 insofar as they relate to the
 Security Agent in its capacity as trustee for the Finance Parties and the
 relationship between themselves and the Security Agent as their trustee may
 be amended by agreement between the other Finance Parties and the Security
 Agent. The Security Agent may amend all documents necessary to effect the
 alteration of the relationship between the Security Agent and the other
 Finance Parties and each such other party irrevocably authorises the Security
 Agent in its name and on its behalf to execute all documents necessary to
 effect such amendments.

 

85

	
  

 	
  

 	
  

 	
  

 
	
 32

 	
  

 	
 Conduct of
 business by the Finance Parties

 
	
  

 	
  

 	
  

 
	
 32.1

 	
  

 	
 Finance Parties tax affairs

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No provision of this Agreement will:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 interfere with the right of any Finance Party to arrange its affairs
 (tax or otherwise) in whatever manner it thinks fit;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 oblige any Finance Party to investigate or claim any credit, relief,
 remission or repayment available to it or the extent, order and manner of any
 claim; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 oblige any Finance Party to disclose any information relating to its
 affairs (tax or otherwise) or any computations in respect of Tax.

 
	
  

 	
  

 	
  

 
	
 32.2

 	
  

 	
 Finance Parties acting together

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Notwithstanding clause 2.2 (Finance Parties’ rights and obligations),
 if the Agent makes a declaration under clause 28.22 (Acceleration) the Agent
 shall, in the names of all the Finance Parties, take such action on behalf of
 the Finance Parties and conduct such negotiations with the Borrower, any
 Obligors or any Subsidiaries of an Obligor and generally administer the
 Facility in accordance with the wishes of the Majority Lenders. All the
 Finance Parties shall be bound by the provisions of this clause and no
 Finance Party shall be entitled to take action independently against any
 Obligor or any of its assets without the prior consent of the Majority
 Lenders.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This clause shall not override clause 31 (Roles of Agent, Security Agent and
 Arranger) as it applies to the Security Agent.

 
	
  

 	
  

 	
  

 
	
 32.3

 	
  

 	
 Majority Lenders

 
	
  

 	
  

 	
  

 
	
 32.3.1

 	
  

 	
 Where any Finance Document provides for any matter to be determined
 by reference to the opinion of, or to be subject to the consent, approval or
 request of, the Majority Lenders or for any action to be taken on the
 instructions of the Majority Lenders (a “majority decision”), such majority
 decision shall (as between the Lenders) only be regarded as having been
 validly given or issued by the Majority Lenders if all the Lenders shall have
 received prior notice of the matter on which such majority decision is
 required and the relevant majority of Lenders shall have given or issued such
 majority decision. However (as between any Obligor and the Finance Parties)
 the relevant Obligor shall be entitled (and bound) to assume that such notice
 shall have duly received by each Lender and that the relevant majority shall
 have been obtained to constitute Majority Lenders when notified to this
 effect by the Agent whether or not this is the case.

 
	
  

 	
  

 	
  

 
	
 32.3.2

 	
  

 	
 If, within ten Business Days of the Agent despatching to each Lender
 a notice requesting instructions (or confirmation of instructions) from the
 Lenders or the agreement of the Lenders to any amendment, modification,
 waiver, variation or excuse of performance for the purposes of, or in
 relation to, any of the Finance Documents, the Agent has not received a reply
 specifically giving or confirming or refusing to give or confirm the relevant
 instructions or, as the case may be, approving or refusing to approve the
 proposed amendment, modification, waiver, variation or excuse of performance,
 then (irrespective of whether such Lender responds at a later date) the Agent
 shall treat any Lender which has not so responded as having indicated a
 desire to be bound by the wishes of 662⁄3% of those Lenders (measured in
 terms of the total Commitments of those Lenders) which have so responded.

 
	
  

 	
  

 	
  

 
	
 32.3.3

 	
  

 	
 For the purposes of clause 32.3.2, any Lender which notifies the
 Agent of a wish or intention to abstain on any particular issue shall be
 treated as if it had not responded.

 

86

	
  

 	
  

 	
  

 	
  

 
	
 32.4

 	
  

 	
 Conflicts

 
	
  

 	
  

 	
  

 
	
 32.4.1

 	
  

 	
 The Borrower acknowledges that any Arranger and its parent
 undertaking, subsidiary undertakings and fellow subsidiary undertakings
 (together an Arranger Group) may be providing debt finance, equity capital or
 other services (including financial advisory services) to other persons with
 which the Borrower may have conflicting interests in respect of the Facility
 or otherwise.

 
	
  

 	
  

 	
  

 
	
 32.4.2

 	
  

 	
 No member of an Arranger Group shall use confidential information
 gained from any Obligor by virtue of the Facility or its relationships with
 any Obligor in connection with their performance of services for other
 persons. This shall not, however, affect any obligations that any member of
 an Arranger Group has as Agent in respect of the Finance Documents. The
 Borrower also acknowledges that no member of an Arranger Group has any
 obligation to use or furnish to any Obligor information obtained from other
 persons for their benefit.

 
	
  

 	
  

 	
  

 
	
 32.4.3

 	
  

 	
 The terms parent undertaking, subsidiary undertaking and fellow
 subsidiary undertaking when used in this clause have the meaning
 given to them in sections 1161 and 1162 of the Companies Act 2006.

 
	
  

 	
  

 	
  

 
	
 32.5

 	
  

 	
 Replacement of a Defaulting Lender

 
	
  

 	
  

 	
  

 
	
 32.5.1

 	
  

 	
 The Borrower may, at any time a Lender has become and continues to be
 a Defaulting Lender, by giving 20 Business Days’ prior written notice to the
 Agent and such Lender:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 replace such Lender by requiring such Lender to (and to the extent permitted
 by law such Lender shall) transfer pursuant to clause 29 (Changes to
 the Lenders) all (and not part only) of its rights and obligations
 under this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 require such Lender to (and to the extent permitted by law such
 Lender shall) transfer pursuant to clause 29 (Changes to the Lenders)
 all (and not part only) of the undrawn Commitment of the Lender,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 to a Lender or other bank, financial institution, trust, fund or
 other entity (a “Replacement Lender”) selected by the Borrower,
 and which is acceptable to the Agent (acting reasonably) and (in the case of
 any transfer of any undrawn Commitments), which confirms its willingness to
 assume and does assume all the obligations or all the relevant obligations of
 the transferring Lender (including the assumption of the transferring
 Lender’s participations or unfunded participations (as the case may be) on
 the same basis as the transferring Lender) for a purchase price in cash
 payable at the time of transfer equal to the outstanding principal amount of
 such Lender’s participation in the outstanding Utilisations and all accrued
 interest, Break Costs and other amounts payable in relation thereto under the
 Finance Documents.

 
	
  

 	
  

 	
  

 
	
 32.5.2

 	
  

 	
 Any transfer of rights and obligations of a Defaulting Lender
 pursuant to this clause shall be subject to the following conditions:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Borrower shall have no right to replace the Agent;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 neither the Agent nor the Defaulting Lender shall have any obligation
 to the Borrower to find a Replacement Lender;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the transfer must take place no later than 20 days after the notice
 referred to in clause 32.5.1; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 in no event shall the Defaulting Lender be required to pay or
 surrender to the Replacement Lender any of the fees received by the
 Defaulting Lender pursuant to the Finance Documents.

 

87

	
  

 	
  

 	
  

 	
  

 
	
 33

 	
  

 	
 Sharing among the
 Finance Parties

 
	
  

 	
  

 	
  

 
	
 33.1

 	
  

 	
 Payments to Finance Parties

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If a Finance Party (a Recovering Finance Party) receives or
 recovers any amount from an Obligor other than in accordance with clause 34 (Payment
 mechanics) and applies that amount to a payment due under the
 Finance Documents then:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the Recovering Finance Party shall, within three Business Days,
 notify details of the receipt or recovery, to the Agent;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the 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 Agent and distributed in
 accordance with clause 34 (Payment mechanics), without taking
 account of any Tax which would be imposed on the Agent in relation to the
 receipt, recovery or distribution; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the Recovering Finance Party shall, within three Business Days of
 demand by the Agent, pay to the Agent an amount (the Sharing Payment) equal
 to such receipt or recovery less any amount which the Agent determines may be
 retained by the Recovering Finance Party as its share of any payment to be
 made, in accordance with clause 34.5 (Partial payments).

 
	
  

 	
  

 	
  

 
	
 33.2

 	
  

 	
 Redistribution of payments

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent shall treat the Sharing Payment as if it had been paid by
 the relevant Obligor and distribute it between the Finance Parties (other
 than the Recovering Finance Party) in accordance with clause 34.5 (Partial
 payments).

 
	
  

 	
  

 	
  

 
	
 33.3

 	
  

 	
 Recovering Finance Party’s rights

 
	
  

 	
  

 	
  

 
	
 33.3.1

 	
  

 	
 On a distribution by the Agent under clause 33.2 (Redistribution
 of payments), the Recovering Finance Party will be subrogated to
 the rights of the Finance Parties which have shared in the redistribution.

 
	
  

 	
  

 	
  

 
	
 33.3.2

 	
  

 	
 If and to the extent that the Recovering Finance Party is not able to
 rely on its rights under clause 33.3.1 above, the relevant Obligor shall be
 liable to the Recovering Finance Party for a debt equal to the Sharing
 Payment which is immediately due and payable.

 
	
  

 	
  

 	
  

 
	
 33.4

 	
  

 	
 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:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 each Finance Party which has received a share of the relevant Sharing
 Payment pursuant to clause 33.2 (Redistribution of payments) shall, upon
 request of the Agent, pay to the Agent for 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); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 that Recovering Finance Party’s rights of subrogation in respect of
 any reimbursement shall be cancelled and the relevant Obligor will be liable
 to the reimbursing Lender for the amount so reimbursed.

 

88

	
  

 	
  

 	
  

 	
  

 
	
 33.5

 	
  

 	
 Exceptions

 
	
  

 	
  

 	
  

 
	
 33.5.1

 	
  

 	
 This clause 33 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 relevant Obligor.

 
	
  

 	
  

 	
  

 
	
 33.5.2

 	
  

 	
 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 in
 accordance with the terms of this Agreement, if:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 it notified that other Finance Party of the legal or arbitration
 proceedings; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 that 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.

 

89

SECTION 9 - ADMINISTRATION

	
  

 	
  

 	
  

 
	
 34

 	
  

 	
 Payment mechanics

 
	
  

 	
  

 	
  

 
	
 34.1

 	
  

 	
 Payments to the Agent

 
	
  

 	
  

 	
  

 
	
 34.1.1

 	
  

 	
 On each date on which an Obligor or a Lender is required to make a
 payment under a Finance Document, that Obligor or Lender shall make the same
 available to the 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 Agent as being customary at the time for settlement of transactions in
 the relevant currency in the place of payment.

 
	
  

 	
  

 	
  

 
	
 34.1.2

 	
  

 	
 Payment shall be made to such account in the principal financial
 centre of the country of that currency (or, in relation to euro, in a
 principal financial centre in a Participating Member State or London) with
 such bank as the Agent specifies.

 
	
  

 	
  

 	
  

 
	
 34.2

 	
  

 	
 Distributions by the Agent

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each payment received by the Agent under the Finance Documents for
 another Party shall, subject to clause 34.3 (Distributions to an Obligor)
 and clause 34.4 (Clawback) be made available by the Agent
 as soon as practicable after receipt to the Party entitled to receive payment
 in accordance with this Agreement (in the case of a Lender, for the account
 of its Facility Office), to such account as that Party may notify to the
 Agent by not less than five Business Days’ notice with a bank in the
 principal financial centre of the country of that currency (or, in relation
 to euro, in the principal financial centre of a Participating Member State or
 London).

 
	
  

 	
  

 	
  

 
	
 34.3

 	
  

 	
 Distributions to an Obligor

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Agent may (with the consent of the Obligor or in accordance with
 clause 35 (Set-off)) apply any amount received by it for that Obligor
 in or towards payment (on the date and in the currency and funds of receipt)
 of any amount due from that Obligor under the Finance Documents or in or
 towards purchase of any amount of any currency to be so applied.

 
	
  

 	
  

 	
  

 
	
 34.4

 	
  

 	
 Clawback

 
	
  

 	
  

 	
  

 
	
 34.4.1

 	
  

 	
 Where a sum is to be paid to the Agent under the Finance Documents
 for another Party, the 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.

 
	
  

 	
  

 	
  

 
	
 34.4.2

 	
  

 	
 If the Agent pays an amount to another Party and it proves to be the
 case that the 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 Agent shall on demand refund the same to the Agent together with
 interest on that amount from the date of payment to the date of receipt by
 the Agent, calculated by the Agent to reflect its cost of funds.

 
	
  

 	
  

 	
  

 
	
 34.5

 	
  

 	
 Partial payments

 
	
  

 	
  

 	
  

 
	
 34.5.1

 	
  

 	
 If the Agent receives a payment for application against amounts due
 under the Finance Documents that is insufficient to discharge all the amounts
 then due and payable by an Obligor under those Finance Documents, the Agent
 shall apply that payment towards the obligations of that Obligor under those
 Finance Documents in the following order:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 first, in or towards payment pro rata
 of any unpaid fees, costs and expenses (ignoring any fees payable under
 clause 11 (Fees)) of the Agent, the Security Agent or the Arrangers
 under those Finance Documents;

 

90

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 secondly, in or towards payment to the Lenders
 pro rata of any amount owing to the Lenders under clause 31.10 (Lenders’
 indemnity to the Agent) including any amount resulting from the
 indemnity to the Security Agent under clause 31.20.1 (Application of certain clauses to
 Security Agent);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 thirdly, in or towards payment to the
 Lenders pro rata of any accrued interest, fee or commission due but unpaid
 under those Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 fourthly, in or towards payment to the
 Lenders pro rata of any principal which is due but unpaid under those Finance
 Documents; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 fifthly, in or towards payment pro rata
 of any other sum due but unpaid under the Finance Documents.

 

	
  

 	
  

 	
  

 
	
 34.5.2

 	
  

 	
 The Agent shall, if so directed by all the Lenders, vary the order
 set out in paragraphs (b) to (e) of clause 34.5.1.

 
	
  

 	
  

 	
  

 
	
 34.5.3

 	
  

 	
 Clauses 34.5.1 and 34.5.2 above will override any appropriation made
 by an Obligor.

 
	
  

 	
  

 	
  

 
	
 34.6

 	
  

 	
 No set-off by Obligors

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 All payments to be made by an Obligor under the Finance Documents
 shall be calculated and be made without (and free and clear of any deduction
 for) set-off or counterclaim.

 
	
  

 	
  

 	
  

 
	
 34.7

 	
  

 	
 Business Days

 
	
  

 	
  

 	
  

 
	
 34.7.1

 	
  

 	
 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).

 
	
  

 	
  

 	
  

 
	
 34.7.2

 	
  

 	
 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.

 
	
  

 	
  

 	
  

 
	
 34.8

 	
  

 	
 Currency of account

 
	
  

 	
  

 	
  

 
	
 34.8.1

 	
  

 	
 Subject to clauses 34.8.2 to 34.8.3, dollars is the currency of
 account and payment for any sum due from an Obligor under any Finance
 Document.

 
	
  

 	
  

 	
  

 
	
 34.8.2

 	
  

 	
 A repayment of all or part of the Loan or an Unpaid Sum and each
 payment of interest shall be made in dollars on its due date.

 
	
  

 	
  

 	
  

 
	
 34.8.3

 	
  

 	
 Each payment in respect of the amount of any costs, expenses or Taxes
 or other losses shall be made in dollars and, if they were incurred in a currency
 other than dollars, the amount payable under the Finance Documents shall be
 the equivalent in dollars of the relevant amount in such other currency on
 the date on which it was incurred.

 
	
  

 	
  

 	
  

 
	
 34.8.4

 	
  

 	
 All moneys received or held by the Security Agent or by a Receiver
 under a Security Document in a currency other than dollars may be sold for
 dollars and the Obligor which executed that Security Document shall indemnify
 the Security Agent against the full cost in relation to the sale. Neither the
 Security Agent nor such Receiver will have any liability to that Obligor in
 respect of any loss resulting from any fluctuation in exchange rates after
 the sale.

 
	
  

 	
  

 	
  

 
	
 34.9

 	
  

 	
 Disruption to Payment Systems etc.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If either the Agent determines (in its discretion) that a Disruption
 Event has occurred or the Agent is notified by the Borrower that a Disruption
 Event has occurred:

 

91

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 the Agent may, and shall if requested to do so by the Borrower,
 consult with the Borrower with a view to agreeing with the Borrower such
 changes to the operation or administration of the Facility as the Agent may
 deem necessary in the circumstances;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 the Agent shall not be obliged to consult with the Borrower in
 relation to any changes mentioned in paragraph (a) above if, in its opinion,
 it is not practicable to do so in the circumstances and, in any event, shall
 have no obligation to agree to such changes;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 the Agent may consult with the Finance Parties in relation to any
 changes mentioned in paragraph (a) above but shall not be obliged to do so
 if, in its opinion, it is not practicable to do so in the circumstances;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 any such changes agreed upon by the Agent and the Borrower shall
 (whether or not it is finally determined that a Disruption Event has
 occurred) be binding upon the Parties as an amendment to (or, as the case may
 be, waiver of) the terms of the Finance Documents notwithstanding the
 provisions of clause 42 (Amendments and grant of waivers);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (e)

 	
 the Agent shall not be liable for any damages, costs or losses
 whatsoever (including, without limitation for negligence, gross negligence or
 any other category of liability whatsoever but not including any claim based
 on the fraud of the Agent) arising as a result of its taking, or failing to
 take, any actions pursuant to or in connection with this clause 34.9; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (f)

 	
 the Agent shall notify the Finance Parties of all changes agreed
 pursuant to paragraph (d) above.

 

	
  

 	
  

 	
  

 
	
 35

 	
  

 	
 Set-off

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
 36

 	
  

 	
 Notices

 
	
  

 	
  

 	
  

 
	
 36.1

 	
  

 	
 Communications in writing

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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 fax or letter.

 
	
  

 	
  

 	
  

 
	
 36.2

 	
  

 	
 Addresses

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The address, and fax number (and the department or officer, if any,
 for whose attention the communication is to be made) of each Obligor or
 Finance 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 Obligor which is a Party, that identified with its
 name in Schedule 1 (The original parties);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 in the case of any Obligor which is not a Party, that identified in
 any Finance Document to which it is a party;

 

92

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 in the case of any Original Lender, the Security Agent, the Agent and
 any other original Finance Party that identified with its name in Schedule 1
 (The
 original parties); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (d)

 	
 in the case of each other Lender or Finance Party, that notified in
 writing to the Agent on or prior to the date on which it becomes a Party in
 the relevant capacity,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 or, in each case, any substitute address, fax number, or department
 or officer as an Obligor or Finance Party may notify to the Agent (or the
 Agent may notify to the other Parties, if a change is made by the Agent) by
 not less than five Business Days’ notice.

 

	
  

 	
  

 	
  

 
	
 36.3

 	
  

 	
 Delivery

 
	
  

 	
  

 	
  

 
	
 36.3.1

 	
  

 	
 Any communication or document made or delivered by one person to
 another under or in connection with the Finance Documents will only be
 effective:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 if by way of fax,
 when received in legible form; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if by way of
 letter, when it has been left at the relevant address or five Business Days
 after being deposited in the post postage prepaid in an envelope addressed to
 it at that address,

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 and, if a
 particular department or officer is specified as part of its address details
 provided under clause 36.2 (Addresses), if addressed to that
 department or officer.

 

	
  

 	
  

 	
  

 
	
 36.3.2

 	
  

 	
 Any communication or document to be made or delivered to the Agent or
 the Security Agent will be effective only when actually received by the Agent
 or the Security Agent and then only if it is expressly marked for the
 attention of the department or officer identified in Schedule 1 (The
 original parties) (or any substitute department or officer as the
 Agent or the Security Agent shall specify for this purpose).

 
	
  

 	
  

 	
  

 
	
 36.3.3

 	
  

 	
 All notices from or to an Obligor shall be sent through the Agent.

 
	
  

 	
  

 	
  

 
	
 36.3.4

 	
  

 	
 Any communication or document made or delivered to the Borrower in
 accordance with this clause will be deemed to have been made or delivered to
 each of the Obligors.

 
	
  

 	
  

 	
  

 
	
 36.4

 	
  

 	
 Notification of address and fax number

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Promptly upon receipt of notification of an address and fax number or
 change of address or fax number pursuant to clause 36.2 (Addresses) or changing its
 own address or fax number, the Agent shall notify the other Parties.

 
	
  

 	
  

 	
  

 
	
 36.5

 	
  

 	
 Electronic communication (Finance Parties)

 
	
  

 	
  

 	
  

 
	
 36.5.1

 	
  

 	
 Any communication to be made between the Agent and a Lender or the
 Security Agent under or in connection with the Finance Documents may be made
 by electronic mail or other electronic means, if the Agent and the relevant
 Lender or the Security Agent:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 notify each other of any change to their address or any other such
 information supplied by them.

 

93

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Finance Parties hereby confirm that unless and until notified to
 the contrary, communication by electronic mail or other electronic means is
 an accepted form of communication.

 
	
  

 	
  

 	
  

 
	
 36.5.2

 	
  

 	
 Any electronic communication made between the Agent and a Lender or
 the Security Agent will be effective only when actually received in readable
 form and in the case of any electronic communication made by a Lender or the
 Security Agent to the Agent only if it is addressed in such a manner as the
 Agent shall specify for this purpose.

 
	
  

 	
  

 	
  

 
	
 36.6

 	
  

 	
 Electronic Communications (Obligors)

 
	
  

 	
  

 	
  

 
	
 36.6.1

 	
  

 	
 Any general communication made between any Finance Party and any
 Obligor, may be made by electronic mail or other electronic means
 (irrespective of any associated risks) if the parties:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 agree that, unless and until notified to the contrary, this is to be
 an accepted form of communication;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 notify each other in writing of their electronic mail address and/or
 any other information required to enable the sending and receipt of
 information by that means; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 notify each other of any change to their address or any other such
 information supplied by them.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Each of the Finance Parties and each Obligor hereby confirm that
 unless and until notified to the contrary, communication by electronic mail
 is an acceptable form of general communication.

 

	
  

 	
  

 	
  

 
	
 36.6.2

 	
  

 	
 Each of the Finance Parties and each Obligor agrees and confirms that
 any communications which involves the giving or receiving of notice (of any
 nature) under this Agreement or relates to the making of requests or demands
 under this Agreement may only be made in accordance with clause 36.3 (Delivery).

 
	
  

 	
  

 	
  

 
	
 36.6.3

 	
  

 	
 Any electronic communication made between any Obligor and any Finance
 Party will be effective only when actually received in readable form and in
 the case of any electronic communication made by an Obligor to any Finance
 Party only if it is addressed in such a manner as that Finance Party shall
 specify for this purpose.

 
	
  

 	
  

 	
  

 
	
 36.7

 	
  

 	
 English language

 
	
  

 	
  

 	
  

 
	
 36.7.1

 	
  

 	
 Any notice given under or in connection with any Finance Document
 shall be in English.

 
	
  

 	
  

 	
  

 
	
 36.7.2

 	
  

 	
 All other documents provided under or in connection with any Finance
 Document shall be:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 in English; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 if not in English, and if so required by the 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.

 

	
  

 	
  

 	
  

 
	
 37

 	
  

 	
 Calculations and
 certificates

 
	
  

 	
  

 	
  

 
	
 37.1

 	
  

 	
 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.

 

94

	
  

 	
  

 	
  

 
	
 37.2

 	
  

 	
 Certificates and determinations

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Any certification or determination by the Agent 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.

 
	
  

 	
  

 	
  

 
	
 37.3

 	
  

 	
 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 or, in any case where the
 practice in the Interbank Market differs, in accordance with that market
 practice.

 
	
  

 	
  

 	
  

 
	
 38

 	
  

 	
 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.

 
	
  

 	
  

 	
  

 
	
 39

 	
  

 	
 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 the Finance Documents
 are cumulative and not exclusive of any rights or remedies provided by law.

 
	
  

 	
  

 	
  

 
	
 40

 	
  

 	
 Amendments and
 grant of waivers

 
	
  

 	
  

 	
  

 
	
 40.1

 	
  

 	
 Required consents

 
	
  

 	
  

 	
  

 
	
 40.1.1

 	
  

 	
 Any term of the Finance Documents may be amended or waived, or a
 consent given by the Agent in respect of such term or the Agent may provide
 its opinion with respect to such term, with the consent of the Agent acting
 on the instructions of all of the Lenders unless such Finance Documents
 provides that such amendment or waiver may be made with the consent of the
 Majority Lenders and, if it affects the rights and obligations of the
 Security Agent or the Agent, the consent of the Agent or the Security Agent)
 and any such amendment or waiver agreed or given by the Agent will be binding
 on the other Finance Parties.

 
	
  

 	
  

 	
  

 
	
 40.1.2

 	
  

 	
 The Agent may (or, in the case of the Security Documents, instruct
 the Security Agent to) effect, on behalf of any Finance Party, any amendment
 or waiver permitted by this clause.

 
	
  

 	
  

 	
  

 
	
 40.1.3

 	
  

 	
 An amendment or waiver which relates to the rights or obligations of
 the Agent, the Security Agent or the Arrangers in their respective capacities
 as such (and not just as a Lender) may not be effected without the consent of
 the Agent, Security Agent or the Arrangers (as the case may be).

 
	
  

 	
  

 	
  

 
	
 40.1.4

 	
  

 	
 Notwithstanding clauses 40.1.1 to 40.1.3 (inclusive), the Agent may
 make technical amendments to the Finance Documents arising out of manifest
 errors on the face of the Finance Documents, where such amendments would not
 prejudice or otherwise be adverse to the interests of any Finance Party
 without any reference or consent of the Finance Parties.

 

95

	
  

 	
  

 	
  

 
	
 40.2

 	
  

 	
 Releases

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Except with the approval of the Lenders or as is expressly permitted
 or required by the Finance Documents, the Agent shall not have authority to
 authorise the Security Agent to release:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 any Charged Property from the security constituted by any Security
 Document; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 any Obligor from any of its guarantee or other obligations under any
 Finance Document.

 

	
  

 	
  

 	
  

 
	
 41

 	
  

 	
 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.

 

96

SECTION
10 - GOVERNING LAW AND ENFORCEMENT

	
  

 	
  

 	
  

 
	
 42

 	
  

 	
 Governing law

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 This Agreement and any non-contractual obligations connected with it
 are governed by English law.

 
	
  

 	
  

 	
  

 
	
 43

 	
  

 	
 Enforcement

 
	
  

 	
  

 	
  

 
	
 43.1

 	
  

 	
 Jurisdiction of English courts

 
	
  

 	
  

 	
  

 
	
 43.1.1

 	
  

 	
 The courts of England have exclusive jurisdiction to settle any
 dispute arising out of or in connection with this Agreement or any
 non-contractual obligations connected with it (including a dispute regarding
 the existence, validity or termination of this Agreement) (a Dispute).

 
	
  

 	
  

 	
  

 
	
 43.1.2

 	
  

 	
 The Parties agree that the courts of England are the most appropriate
 and convenient courts to settle Disputes and accordingly no Party will argue
 to the contrary.

 
	
  

 	
  

 	
  

 
	
 43.1.3

 	
  

 	
 This clause 43.1 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.

 
	
  

 	
  

 	
  

 
	
 43.2

 	
  

 	
 Service of process

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Without prejudice to any other mode of service allowed under any
 relevant law, each Obligor which is a Party:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (a)

 	
 irrevocably appoints the person named in Schedule 1 (The
 original parties) as that Obligor’s English process agent as its
 agent for service of process in relation to any proceedings before the
 English courts in connection with any Finance Document;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (b)

 	
 agrees that failure by a process agent to notify the relevant Obligor
 of the process will not invalidate the proceedings concerned; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (c)

 	
 if any person appointed as process agent for an Obligor is unable for
 any reason to act as agent for service of process, that Obligor must
 immediately (and in any event within ten days of such event taking place)
 appoint another agent on terms acceptable to the Agent. Failing this, the
 Agent may appoint another agent for this purpose.

 
	
  

 	
  

 	
  

 	
  

 	
  

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

 

97

Schedule 1

The original parties

Borrower

	
  

 	
  

 
	
 Name:

 	
 GAS-two Ltd.

 
	
 Jurisdiction
 of incorporation

 	
 Bermuda

 
	
 Registration
 number (or equivalent, if any)

 	
 41495

 
	
 English
 process agent (if not incorporated in England)

 	
 Unisea Maritime Ltd.

 
	
 Registered
 office

 	
 Clarendon House, 2 Church Street, Hamilton
 HM11, Bermuda

 
	
 Address for
 service of
notices

 	
 Mr. Henrik Bjerregaard, c/o Gaslog Monaco
 SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 

GasLog

	
  

 	
  

 
	
 Name of
 GasLog

 	
 GasLog Ltd.

 
	
 Jurisdiction
 of incorporation

 	
 Bermuda

 
	
 Registration
 number (or equivalent, if any)

 	
 33928

 
	
 English
 process agent (if not incorporated in England)

 	
 Unisea Maritime Ltd.

 
	
 Registered
 office

 	
 Clarendon House, 2 Church Street, Hamilton
 HM11, Bermuda

 
	
 Address for
 service of
notices

 	
 Mr. Henrik Bjerregaard, c/o Gaslog Monaco
 SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 

GasLog Carriers

	
  

 	
  

 
	
 Name of
 GasLog Carriers

 	
 GasLog Carriers Ltd.

 
	
 Jurisdiction
 of incorporation

 	
 Bermuda

 
	
 Registration
 number (or equivalent, if any)

 	
 41493

 
	
 English process
 agent (if not incorporated in England)

 	
 Unisea Maritime Ltd.

 
	
 Registered
 office

 	
 Clarendon House, 2 Church Street, Hamilton
 HM11, Bermuda

 
	
 Address for
 service of
notices

 	
 Mr. Henrik Bjerregaard, c/o Gaslog Monaco
 SAM, Gildo Pastor

 Center, 7, rue du Gabian, MC98000, Monaco

 

98

The Original Lenders

	
  

 	
  

 	
  

 	
  

 
	
 Name

 

 	
 DnB NOR Bank ASA

 	
 National Bank of Greece S.A.

 	
 UBS AG

 
	
 Facility Office, address, fax number and
 attention details for notices and account details for payments

 	
 20 St. Dunstan’s
 Hill
London EC3R 8SY

 

 

 For credit matters: Mr
Omar Sekkat / Mr
David Grant

 Fax: +44(0)207 626 5956

 

 For loan administration matters:

 

 Mr Mike Rufian / Mr
Simon Beedleston
Fax: +44(0) 207 283 4430

 A/C No.: 05084006

 	
 2 Bouboulinas 

 Street & Akti 

 Miaouli

 Piraeus 185 35
Greece

 

 For credit matters: Ms Kalamvouni/Ms
Antoniou

 Fax:+30 210  414 4120

 

 For loan administration matters:

 

 Mr. Kalyvas

 Fax: +30 210 414 4092

 	
 Bahnhofstrasse, 45
8001 Zurich

 

 For credit matters:

 Mr Gerhard Supper,

 Corporate Clients
Advisor

 Fax: +41 (0)44 237 4141

 

 For loan administration matters:

 

 Fax: +41 44 237 4141
A/C No.: 0230-284035

 
	
 Commitment
 ($)

 	
 49,166,666.66

 	
 49,166,666.66

 	
 49,166,666.66

 
	
 TOTAL

 	
 147,500,000

 	
  

 	
  

 

99

The Agent

	
  

 	
  

 
	
 Name

 	
 DnB NOR Bank ASA

 
	
 Facility
 Office, address, fax number and attention details for notices and account
 details for payments

 	
 20 St. Dunstan’s Hill

 London EC3R 8HY

 For credit matters:

 Fax: +44(0)207 626 5956

 For loan administration matters:

 Fax: +44(0) 207 283 4430

 A/C No.: 05084006

 

The Security Agent

	
  

 	
  

 
	
 Name

 	
 DnB NOR Bank ASA

 
	
 Facility Office,
 address, fax number and attention details for notices and account details for
 payments

 	
 20 St. Dunstan’s Hill

 London EC3R 8HY

 For credit matters:

 Fax: +44(0)207 626 5956

 For loan administration matters:

 Fax: +44(0) 207 283 4430

 A/C No.: 05084006

 

100

Schedule 2

Ship information

	
  

 	
  

 
	
 Builder:

 	
 Samsung Heavy Industries Co., Ltd.

 
	
 Builder’s
 registered office:

 	
 11th Floor, KIPS Center, 647-9
 Yeoksam-Dong, Kangnam-Gu,

 Seoul, Korea.

 
	
 Hull Number:

 	
 1642

 
	
 Scheduled
 delivery date:

 	
 31 July 2010

 
	
 Date and
 description of Building Contract:

 	
 Shipbuilding Contract dated 29 April 2005
 as amended by

 amendment no. 1 dated 28 June 2007 and novated to the

 Borrower under a novation agreement dated 28 March 2008 and

 as may further be amended, supplemented or varied in

 accordance with the terms hereof

 
	
 Price:

 	
 $212,869,430

 
	
 Contract
 Price:

 	
 $191,096,200

 
	
 Date and
 number of Refund Guarantee:

 	
 7 April 2008, MO902-505-LG-0032/1

 
	
 Name and
 address of Refund Guarantor:

 	
 The Export-Import Bank of Korea

 
	
 Pre-Delivery
 Commitment:

 	
 $80,000,000

 
	
 Delivery
 Commitment:

 	
 $67,500,000

 
	
 Flag State

 	
 Bermuda

 
	
 Charter
 description:

 	
 Time Charter dated 19 August 2008

 
	
 Charterer:

 	
 Methane Services Limited, a wholly-owned
 subsidiary of BG

 Energy Holdings Limited

 
	
 Classification:

 	
 *A1, E, Liquefied gas carrier, ship type 2G
 (Membrane tank, maximum pressure 25 kPaG and minimum temperature -163°C), SH, SH-DLA, SHCM, RES, *AMS, *ACCU, SFA(40), NIBS, *APS, *ES, PORT,
 POT, CRC, DFD, and UWILD.

 
	
 Classification
 Society:

 	
 American Bureau of Shipping

 

101

Schedule 3

Conditions precedent

Part 1

Conditions precedent to any Utilisation

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1

 	
  

 	
 Original Obligors’ corporate documents 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 A copy
 of the Constitutional Documents of each Original Obligor.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 A copy
 of a resolution of the board of directors of each Original Obligor (or any
 committee of such board empowered to approve and authorise the following
 matters):

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 approving
the terms of, and the transactions contemplated by, the Finance Documents the
Building Contract or the Charter (Relevant Documents) to which it is a party
and resolving that it execute the Relevant Documents; 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 authorising
 a specified person or persons to execute the Relevant Documents on its
 behalf; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 authorising
 a specified person or persons, on its behalf, to sign and/or despatch all
 documents and notices (including, if relevant, any Utilisation Request) to be
 signed and/or despatched by it under or in connection with the Relevant
 Documents to which it is a party.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 If
 applicable, a copy of a resolution of the board of directors of the relevant
 company, establishing any committee referred to in paragraph (b) above and
 conferring authority on that committee.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 A
 specimen of the signature of each person authorised by the resolution
 referred to in paragraph (b) above.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 (if a
 requirement under the Constitutional Documents of each Original Obligor or
 Bermudian law) A copy of a resolution signed by all the holders of the issued
 shares in each Original Obligor, approving the terms of, and the transactions
 contemplated by, the Relevant Documents to which such Obligor is a party.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 (if a
 requirement under the Constitutional Documents of each Original Obligor or
 Bermudian law) A copy of a resolution of the board of directors of each
 corporate shareholder of each Original Obligor approving the terms of the
 resolution referred to in paragraph (e) above.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 A
 certificate of the Counter Guarantor (signed by a director) confirming that
 borrowing or guaranteeing or securing, as appropriate, the Total Commitments
 would not cause any borrowing, guaranteeing or similar limit binding on any
 other Original Obligor to be exceeded.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 A copy
 of any power of attorney under which any person is to execute any of the
 Relevant Documents on behalf of any Original Obligor.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 A
 certificate of an authorised signatory of the relevant Original Obligor
 certifying that each copy document relating to it specified in this Part of
 this Schedule is correct, complete and in full force and effect as at a date
 no earlier than the date of this Agreement and that any such resolutions or
 power of attorney have not been revoked.

 

102

	
  

 	
  

 	
  

 	
  

 
	
 2

 	
  

 	
 Legal opinions

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 A legal
 opinion of Norton Rose LLP, London addressed to the Arrangers, the Security
 Agent and the Agent on matters of English law, substantially in the form
 approved by the Agent prior to signing this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 A legal
 opinion of the legal advisers to the Arrangers, the Security Agent and the
 Agent in England and also each jurisdiction in which an Obligor is
 incorporated and/or which is or is to be the Flag State of the Ship, or in
 which an Account opened at Utilisation is established or which governs any
 assets which are to be the subject of a Security Interest substantially in
 the form approved by the Agent prior to signing this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 3

 	
  

 	
 Other documents and evidence 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Evidence
 that any process agent referred to in clause 43.2 (Service of process) or any equivalent provision of any
 other Finance Document entered into on or before the first Utilisation Date,
 if not an Original Obligor, has accepted its appointment.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 A copy
 of any other authorisation or other document, opinion or assurance which the
 Agent considers to be necessary or desirable (if it has notified the Borrower
 accordingly) in connection with the entry into and performance of the
 transactions contemplated by any Finance Document which is executed on and
 dated the date of the Agreement or for the validity and enforceability of any
 Finance Document.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 The
 Original Financial Statements.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 Evidence
 that the fees, commissions, costs and expenses then due from the Borrower
 pursuant to clause 11 (Fees)
 and clause 16 (Costs and expenses)
 have been paid or will be paid by the first Utilisation Date.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 A copy,
 certified by an approved person to be a true and complete copy, of the Time
 Charter and of the supervision and management agreement entered into between
 the Borrower and the Manager (or another approved manager) in an approved
 form.

 
	
  

 	
  

 	
  

 	
  

 
	
 4

 	
  

 	
 Bank Accounts 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Evidence
 that any Account required to be established under clause 26 (Bank accounts) has been opened and
 established, that any Account Security in respect of each such Account has
 been executed and delivered by the Borrower in favour of the Security Agent
 and that any notice required to be given to an Account Bank under that
 Account Security has been given to it and acknowledged by it in the manner
 required by that Account Security and that an amount has been credited to it.

 
	
  

 	
  

 	
  

 	
  

 
	
 5

 	
  

 	
 Construction matters 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 The
 original Refund Guarantee and a copy, certified by an approved person to be a
 true and complete copy, of the Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 A
 Pre-Delivery Security Assignment duly executed by the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Duly
 executed notices of assignment as required by the Pre-Delivery Security
 Assignment.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 Evidence
 that the acknowledgements of the notices of assignment required under the
 Pre-Delivery Security Assignment have been pre-cleared with and agreed by the
 Refund Guarantor and the Builder.

 

103

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e)

 	
 (If
 required by the Lenders) a legal opinion of legal advisers to the Arrangers,
 the Security Agent and the Agent in Korea substantially in the form agreed
 with the Agent prior to signing the Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (f)

 	
 Evidence
 that the sum of $18,122,710 in respect of the Borrower’s equity in the Ship
 has been paid in an approved manner.

 
	
  

 	
  

 	
  

 	
  

 
	
 6

 	
  

 	
  “Know your customer” information 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Such
 documentation and information as any Finance Party may reasonably request
 through the Agent to comply with “know your customer” or similar
 identification procedures under all laws and regulations applicable to that
 Finance Party.

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
  

 	
 Guarantees and other Finance Documents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Counter Guarantee and the Guarantee duly executed and a copy, certified by an
 approved person to be a true and complete copy of the Counter Guarantor
 Representations Letter.

 
	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
 Share security 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Share Security in respect of the Borrower duly executed by its Holding
 Company together with all letters, transfers, certificates and other
 documents required to be delivered under the Share Security.

 
	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
 Charter security 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The
 Charter Assignment duly executed by the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
 10

 	
  

 	
 Subordination 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Evidence
 that any amounts of the Price funded by an Affiliate to the Borrower have
 been subordinated to the amounts owing under the Finance Documents in an
 approved manner.

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
  

 	
 Value of Security 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (In the
 case of the Utilisation in respect of the Pre-Delivery Commitment) valuations
 obtained (not more than 30 days before the first Utilisation Date) in
 accordance with clause 24 (Minimum
 security value) showing that the Security Value (relative to the
 Building Contract) will not be less than 120% of the Loan upon the
 Utilisation Date.

 
	
  

 	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 Deed of Release 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Deed (or
 deeds) of release in relation to the Existing Loan Agreement and any security
 granted in connection with this, duly executed, together with any notices
 required under any deed of release.

 

104

Part 2

Conditions precedent on Delivery

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1

 	
  

 	
 Corporate documents 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 A
 certificate of an authorised signatory of the Borrower certifying that each
 copy document relating to it specified in Part 1 of this Schedule remains
 correct, complete and in full force and effect as at a date no earlier than a
 date approved for this purpose and that any resolutions or power of attorney
 referred to in Part I of this Schedule in relation to it have not been
 revoked or amended.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 A
 certificate of an authorised signatory of each other Obligor which is party
 to any of the Original Security Documents required to be executed at or
 before Delivery of the Ship certifying that each copy document relating to it
 specified in Part 1 of this Schedule remains correct, complete and in full
 force and effect as at a date no earlier than a date approved for this
 purpose and that any resolutions or power of attorney referred to in Part I
 of this Schedule in relation to it have not been revoked or amended.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2

 	
  

 	
 Security 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 The
 Mortgage and the Deed of Covenant duly executed by the Borrower.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 Any
 Manager’s Undertaking required at Delivery pursuant to the Finance Documents
 duly executed by the relevant manager.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 Duly
 executed notices of assignment and acknowledgements of those notices as
 required by any of the above Security Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3

 	
  

 	
 Delivery and registration of Ship 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Evidence
 that the Ship:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

 	
 is
 legally and beneficially owned by the Borrower and registered provisionally
 in the name of the Borrower through the relevant Registry as a ship under the
 laws and flag of the relevant Flag State;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

 	
 is
 operationally seaworthy and in every way fit for service;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

 	
 is
 classed with the relevant Classification free of all requirements and
 recommendations of the relevant Classification Society;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iv)

 	
 is
 insured in the manner required by the Finance Documents;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (v)

 	
 has been
 delivered, and accepted for service, under the Charter; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (vi)

 	
 is free
 of any other charter commitment which would require approval under the
 Finance Documents.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (vii)

 	
 any
 prior registration (other than through the relevant Registry in the relevant
 Flag State) of the Ship has been or will (within such period as may be
 approved) cancelled.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4

 	
  

 	
 Insurance 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In
 relation to the Ship’s Insurances:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 an
 opinion from insurance consultants appointed by the Agent on such Insurances;

 

105

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 evidence
 that such Insurances have been placed in accordance with clause 23 (Insurance); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 evidence
 that approved brokers, insurers and/or associations have issued or will issue
 letters of undertaking in favour of the Security Agent in an approved form in
 relation to the Insurances.

 
	
  

 	
  

 	
  

 	
  

 
	
 5

 	
  

 	
 ISM and ISPS Code

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Copies
 of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 the
 document of compliance issued in accordance with the ISM Code to the person
 who is the operator of the Ship for the purposes of that code;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 the
 safety management certificate in respect of the Ship issued in accordance
 with the ISM Code;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 the
 international ship security certificate in respect of the Ship issued under
 the ISPS Code;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 If so
 requested by the Agent, any other certificates issued under any applicable
 code required to be observed by the Ship or in relation to its operation
 under any applicable law.

 
	
  

 	
  

 	
  

 	
  

 
	
 6

 	
  

 	
 Value of security 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Valuations
 obtained (not more than 30 days before the relevant Utilisation Date) in
 accordance with clause 24 (Minimum
 security value) showing that the Security Value (relative to the
 Ship) will be not less than 120% of the Available Facility upon execution of
 the Security Documents specified in paragraph 2 (Security) of this Part of this Schedule.

 
	
  

 	
  

 	
  

 	
  

 
	
 7

 	
  

 	
 Construction matters 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 Evidence
 that any authorisations required from any government entity for the export of
 the Ship by the Builder have been obtained or that no such authorisations are
 required.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 Evidence
 that the Contract Price of the Ship (as adjusted in accordance with its
 Building Contract) will have been paid upon the relevant Utilisation being
 made (with the Borrower having provided its equity to the Agent prior to the
 Utilisation Date) and that the Builder will not have any lien or other right
 to detain the ship on its Delivery.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 The
 original or a copy, certified by an approved person to be a true and complete
 copy, of the builder’s certificate and any bill of sale conveying title to
 the Ship to the Borrower and the protocol of delivery and acceptance,
 commercial invoice and any other delivery documentation required under the
 Building Contract.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d)

 	
 Evidence
 that any amounts of the Price funded by an Affiliate to the Borrower have
 been subordinated to the amounts owing under the Finance Documents in an
 approved manner.

 
	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
 Fees and expenses 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Evidence
 that the fees, commissions, costs and expenses that are due from the Borrower
 pursuant to clause 11 (Fees)
 and clause 16 (Costs and expenses)
 have been paid or will be paid by the relevant Utilisation Date.

 

106

	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
 Survey report 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (if
 required by the Agent) a survey report from approved surveyors obtained not
 more than 10 days before the relevant Utilisation Date evidencing that the
 Ship is seaworthy and capable of safe operation.

 
	
  

 	
  

 	
  

 	
  

 
	
 10

 	
  

 	
 Environmental matters 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (Promptly
 as of Delivery) Copies of the Ship’s certificate of financial responsibility
 and vessel response plan required under United States law and evidence of
 their approval by the appropriate United States government entity and (if
 requested by the Agent) an environmental report in respect of the Ship from
 an approved person.

 
	
  

 	
  

 	
  

 	
  

 
	
 11

 	
  

 	
 Consents 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Evidence
 that any consents required in connection with the delivery of the Ship, the
 registration of title to the Ship, the registration of the Mortgage over the
 Ship and the assignment of the Charter have been obtained.

 
	
  

 	
  

 	
  

 	
  

 
	
 12

 	
  

 	
 Legal opinions 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 A legal
 opinion of Norton Rose LLP, London addressed to the Arrangers, the Security
 Agent and the Agent on matters of English law, substantially in the form
 approved by the Agent prior to Delivery.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 A legal opinion of the legal advisers to the Arrangers, the Security
 Agent and the Agent in Korea and also each jurisdiction in which an Obligor
 is incorporated and/or which is or is to be the Flag State of the Ship, or
 which governs any assets which are to be the subject of a Security Interest
 substantially in the form approved by the Agent prior to Delivery.

 

107

Schedule 4

Utilisation Request

	
  

 	
  

 
	
 From:

 	
 Gas-two Ltd.

 
	
 To:

 	
 DnB NOR Bank ASA

 
	
 Dated:

 	
 [l]

 

Dear Sirs

$147,500,000

Facility Agreement dated [l] 2009 (the “Agreement”)

	
  

 	
  

 
	
 1

 	
 We refer to the
 Agreement. This is a Utilisation Request. Terms defined in the Agreement have
 the same meaning in this Utilisation Request unless given a different meaning
 in this Utilisation Request.

 
	
  

 	
  

 
	
 2

 	
 We wish to borrow
 an Advance on the following terms:

 

	
  

 	
  

 	
  

 
	
  

 	
 Proposed
 Utilisation Date:

 	
 [l] (or, if that is not a Business Day, the next Business
 Day)

 
	
  

 	
 Amount:

 	
 $[80,000,000]
 [67,500,000]

 
	
  

 	
  

 	
 [Note: the
 maximum amount to be advanced is 65% of the Security Value]

 

	
  

 	
  

 
	
 3

 	
 We confirm that
 each condition specified in clause 4.4 (Further conditions precedent) is
 satisfied on the date of this Utilisation Request.

 
	
  

 	
  

 
	
 4

 	
 The purpose of
 this Advance is [specify purpose complying with clause 3 of the
 Agreement] and its proceeds should be credited to [l] [specify account].

 
	
  

 	
  

 
	
 5

 	
 We request that
 the first Interest Period for the Loan be [l] months.

 
	
  

 	
  

 
	
 6

 	
 This Utilisation
 Request is irrevocable.

 

	
  

 	
  

 	
  

 
	
  

 	
 Yours faithfully

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
 authorised signatory for

 GAS-two Ltd.

 	
  

 

108

Schedule 5

Selection Notice

	
  

 	
  

 
	
 From:

 	
 GAS-two Ltd.

 
	
 To:

 	
 DnB NOR Bank ASA

 
	
 Dated:

 	
 [l]

 

Dear Sirs

$147,500,000

Facility Agreement dated [l] 2009 (the
“Agreement”)

	
  

 	
  

 
	
 1

 	
 We refer to the
 Agreement. This is a Selection Notice. Terms defined in the Agreement have
 the same meaning in this Selection Notice unless given a different meaning in
 this Selection Notice.

 
	
  

 	
  

 
	
 2

 	
 We request that
 the next Interest Period for the Loan be [l] months.

 
	
  

 	
  

 
	
 3

 	
 This Selection
 Notice is irrevocable.

 

	
  

 	
  

 	
  

 
	
  

 	
 Yours faithfully

 	
  

 
	
  

 	 

 	
  

 
	
  

 	
 authorised signatory for

 	
  

 
	
  

 	
 GAS-two Ltd.

 	
  

 

109

Schedule 6

Mandatory Cost Formula

	
  

 	
  

 
	
 1

 	
 The Mandatory Cost is an addition to the interest rate to compensate
 Lenders for the cost of compliance with (a) the requirements of the Bank of
 England and/or the Financial Services Authority (or, in either case, any
 other authority which replaces all or any of its functions) or (b) the
 requirements of the European Central Bank.

 
	
  

 	
  

 
	
 2

 	
 On the first day of each Interest Period (or as soon as possible
 thereafter) the Agent shall calculate, as a percentage rate, a rate (the “Additional
 Cost Rate”) for each Lender, in accordance with the paragraphs set
 out below. The Mandatory Cost will be calculated by the Agent as a weighted
 average of the Lenders’ Additional Cost Rates (weighted in proportion to the
 percentage participation of each Lender in the relevant Loan) and will be
 expressed as a percentage rate per annum.

 
	
  

 	
  

 
	
 3

 	
 The Additional Cost Rate for any Lender lending from a Facility
 Office in a Participating Member State will be the percentage notified by
 that Lender to the Agent. This percentage will be certified by that Lender in
 its notice to the Agent to be its reasonable determination of the cost
 (expressed as a percentage of that Lender’s participation in all Loans made
 from that Facility Office) of complying with the minimum reserve requirements
 of the European Central Bank in respect of loans made from that Facility
 Office.

 
	
  

 	
  

 
	
 4

 	
 The Additional Cost Rate for any Lender lending from a Facility
 Office in the United Kingdom will be calculated by the Agent as follows:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in relation to a
 sterling Loan:

 
	
  

 	
  

 	
 AB + C(B – D) + E × 0.01

 	
  per cent. per
 annum

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
            100
 – (A
 + C)

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in relation to a
 Loan in any currency other than sterling:

 
	
  

 	
  

 	
 E × 0.01

 	
  per cent. per
 annum

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
    300

 

	
  

 	
  

 	
  

 
	
  

 	
 Where:

 
	
  

 	
  

 	
  

 
	
 A.

 	
 is the percentage of Eligible Liabilities (assuming these to be in
 excess of any stated minimum) which that Lender is from time to time required
 to maintain as an interest free cash ratio deposit with the Bank of England
 to comply with cash ratio requirements.

 
	
  

 	
  

 	
  

 
	
 B.

 	
 is the percentage rate of interest (excluding the Margin and the
 Mandatory Cost) and, if the Loan is an Unpaid Sum, the additional rate of
 interest specified in clause 8.3.1 (Default interest) payable for the
 relevant Interest Period on the Loan.

 
	
  

 	
  

 	
  

 
	
 C.

 	
 is the percentage (if any) of Eligible Liabilities which that Lender
 is required from time to time to maintain as interest bearing Special
 Deposits with the Bank of England.

 
	
  

 	
  

 	
  

 
	
 D.

 	
 is the percentage rate per annum payable by the Bank of England to
 the Agent on interest bearing Special Deposits.

 
	
  

 	
  

 	
  

 
	
 E.

 	
 is designed to compensate Lenders for amounts payable under the Fees
 Rules and is calculated by the Agent as being the average of the most recent
 rates of charge supplied by the Reference Banks to the Agent pursuant to
 paragraph 7 below and expressed in pounds per £1,000,000.

 
	
  

 	
  

 
	
 5

 	
 For the purposes of this Schedule:

 

110

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 “Eligible Liabilities” and “Special Deposits” have the
 meanings given to them from time to time under or pursuant to the Bank of
 England Act 1998 or (as may be appropriate) by the Bank of England;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 “Fees Rules” means the rules on periodic fees contained in
 the FSA Supervision Manual or such other law or regulation as may be in force
 from time to time in respect of the payment of fees for the acceptance of
 deposits;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 “Fee Tariffs” means the fee tariffs specified in the Fees
 Rules under activity group A.1 Deposit acceptors (ignoring any minimum fee or
 zero rated fee required pursuant to the Fees Rules but taking into account
 any applicable discount rate); and

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 “Tariff Base” has the meaning given to it in, and will be
 calculated in accordance with, the Fees Rules.

 

	
  

 	
  

 	
  

 
	
 6

 	
 In application of the above formulae, A, B, C and D will be included
 in the formulae as percentages (i.e., five per cent. will be included in the
 formula as five and not as 0.05). A negative result obtained by subtracting D
 from B shall be taken as zero. The resulting figures shall be rounded to four
 decimal places.

 
	
  

 	
  

 	
  

 
	
 7

 	
 If requested by the Agent, each Reference Bank shall, as soon as
 practicable after publication by the Financial Services Authority, supply to
 the Agent, the rate of charge payable by that Reference Bank to the Financial
 Services Authority pursuant to the Fees Rules in respect of the relevant
 financial year of the Financial Services Authority (calculated for this
 purpose by that Reference Bank as being the average of the Fee Tariffs
 applicable to that Reference Bank for that financial year) and expressed in
 pounds per £1,000,000 of the Tariff Base of that Reference Bank.

 
	
  

 	
  

 	
  

 
	
 8

 	
 Each Lender shall supply any information required by the Agent for
 the purpose of calculating its Additional Cost Rate. In particular, but
 without limitation, each Lender shall supply the following information on or
 prior to the date on which it becomes a Lender:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the jurisdiction of its Facility Office; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 any other information that the Agent may reasonably require for such
 purpose.

 
	
  

 	
  

 	
  

 
	
  

 	
 Each Lender shall promptly notify the Agent of any change to the
 information provided by it pursuant to this paragraph.

 
	
  

 	
  

 	
  

 
	
 9

 	
 The percentages of each Lender for the purpose of A and C above and
 the rates of charge of each Reference Bank for the purpose of E above shall
 be determined by the Agent based upon the information supplied to it pursuant
 to paragraphs 7 and 8 above and on the assumption that, unless a Lender
 notifies the Agent to the contrary, each Lender’s obligations in relation to
 cash ratio deposits and Special Deposits are the same as those of a typical
 bank from its jurisdiction of incorporation with a Facility Office in the
 same jurisdiction as its Facility Office.

 
	
  

 	
  

 	
  

 
	
 10

 	
 The Agent shall have no liability to any person if such determination
 results in an Additional Cost Rate which over or under compensates any Lender
 and shall be entitled to assume that the information provided by any Lender
 or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct
 in all respects.

 
	
  

 	
  

 	
  

 
	
 11

 	
 The Agent shall distribute the additional amounts received as a
 result of the Mandatory Cost to the Lenders on the basis of the Additional
 Cost Rate for each Lender based on the information provided by each Lender
 and each Reference Bank pursuant to paragraphs 3, 7 and 8 above.

 

111

	
  

 	
  

 	
  

 
	
 12

 	
 Any determination by the Agent pursuant to this Schedule in relation
 to a formula, the Mandatory Cost, an Additional Cost Rate or any amount
 payable to a Lender shall, in the absence of manifest error, be conclusive
 and binding on all Parties.

 
	
  

 	
  

 	
  

 
	
 13

 	
 The Agent may from time to time, after consultation with the Borrower
 and the Lenders, determine and notify to all Parties any amendments which are
 required to be made to this Schedule in order to comply with any change in
 law, regulation or any requirements from time to time imposed by the Bank of
 England, the Financial Services Authority or the European Central Bank (or,
 in any case, any other authority which replaces all or any of its functions)
 and any such determination shall, in the absence of manifest error, be
 conclusive and binding on all Parties.

 

112

Schedule 7

Form of Transfer Certificate

	
  

 	
  

 
	
 To:

 	
 [l] as Agent

 
	
  

 	
  

 
	
 From:

 	
 [The
 Existing Lender] (the Existing Lender) and [The New
 Lender] (the New Lender)

 
	
  

 	
  

 
	
 Dated:

 	
  

 

$147,500,000 Facility Agreement
dated [l] 2009 (the
“Agreement”)

	
  

 	
  

 	
  

 
	
 1

 	
 We refer to the Agreement. This is a Transfer Certificate. Terms
 defined in the Agreement have the same meaning in this Transfer Certificate
 unless given a different meaning in this Transfer Certificate.

 
	
  

 	
  

 	
  

 
	
 2

 	
 We refer to clause 29.5 (Procedure for transfer):

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 The Existing Lender and the New Lender agree to the Existing Lender
 assigning to the New Lender all or part of the Existing Lender’s Commitment
 rights and assuming the Existing Lender’s obligations referred to in the
 Schedule in accordance with clause 29.5 (Procedure for transfer) and the Existing
 Lender assigns and agrees to assign such rights to the New Lender with effect
 from the Transfer Date]

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 The proposed Transfer Date is [•].

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The Facility Office and address, fax number and attention details for
 notices of the New Lender for the purposes of clause 36.2 (Addresses)
 are set out in the Schedule.

 
	
  

 	
  

 	
  

 
	
 3

 	
 The New Lender expressly acknowledges the limitations on the Existing
 Lender’s obligations set out in clause 29.4.3.

 
	
  

 	
  

 	
  

 
	
 4

 	
 This Transfer Certificate 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 Transfer Certificate.

 
	
  

 	
  

 	
  

 
	
 5

 	
 This Transfer Certificate and any non-contractual obligations
 connected with it are governed by English law.

 

113

The Schedule

Commitment/rights to be assigned
and obligations to be assumed

[insert
relevant details]

Facility Office address, fax number

and attention details for notices and account details for payments

[insert
relevant details]

	
  

 	
  

 
	
 [Existing Lender]

 	
 [New Lender]

 
	
 By:

 	
 By:

 

This Transfer Certificate is accepted by the
Agent and the Transfer Date is confirmed to be as stated above.

[Agent]

By:

114

SIGNATURES

	
  
 	 	 
	
 THE BORROWER
 	 	 
	
  
 	 	 
	
 GAS-two Ltd.
 	 	 
	
  
 	/s/ Henrik Bjerregaard	 
	
 By:
 	 	 
	
  
 	 	 
	
 THE ARRANGERS
 	 	 
	
  
 	 	 
	
 DnB NOR BANK ASA
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Omar Sekkat	 
	
  
 	 	 
	
 NATIONAL BANK OF GREECE S.A.
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Brian Stephens	/s/ Sotiris Charalambous
	
  
 	 	 
	
 UBS AG
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Ralph Schumacher	/s/ Peter Kempin
	
  
 	 	 
	
 THE AGENT
 	 	 
	
  
 	 	 
	
 DnB NOR BANK ASA
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Omar Sekkat	 
	
  
 	 	 
	
 THE SECURITY AGENT
 	 	 
	
  
 	 	 
	
 DnB NOR BANK ASA
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Omar Sekkat	 
	
  
 	 	 
	
 THE LENDERS
 	 	 
	
  
 	 	 
	
 DnB NOR BANK ASA
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Omar Sekkat	 
	
  
 	 	 
	
 NATIONAL BANK OF GREECE S.A.
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Brian Stephens	/s/ Sotiris Charalambous

115

	
  
 	 	 
	
 UBS AG
 	 	 
	
  
 	 	 
	
 By:
 	/s/ Ralph Schumacher	/s/ Peter Kempin

116

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]