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$19,000,0000
Secured Loan Agreement |
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Dated March 2019
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(1)
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Erikub Shipping Company Inc.
Wotho Shipping Company Inc. (as Borrowers) |
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(2)
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Diana Shipping Inc.
(as Original Guarantor) |
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(3)
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The Financial Institutions
listed in Schedule 1 (as Original Lenders) |
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(4)
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DNB Bank ASA
(as Arranger) |
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(5)
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DNB Bank ASA
(as Agent) |
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(6)
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DNB Bank ASA
(as Swap Provider) |
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(7)
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DNB Bank ASA
(as Security Agent) |
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Page
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Section 1
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Interpretation
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2
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1
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Definitions and Interpretation
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2
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Section 2
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The Loan
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24
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2
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The Loan
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24
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3
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Purpose
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24
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4
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Conditions of Utilisation
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24
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Section 3
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Utilisation
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27
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5
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Advance
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27
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Section 4
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Repayment, Prepayment and Cancellation
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28
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6
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Repayment
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28
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7
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Illegality, Prepayment and Cancellation
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28
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Section 5
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Costs of Utilisation
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31
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8
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Interest
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31
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9
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Interest Periods
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32
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10
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Changes to the Calculation of Interest
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32
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11
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Fees
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33
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Section 6
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Additional Payment Obligations
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35
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12
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Tax Gross Up and Indemnities
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35
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13
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Increased Costs
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44
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14
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Other Indemnities
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46
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15
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Mitigation by the Lenders
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48
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16
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Costs and Expenses
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49
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Section 7
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Accounts and Application of Earnings
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51
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17
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Accounts
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51
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18
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Additional Security
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52
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19
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Guarantee and Indemnity
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53
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Section 8
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Representations, Undertakings and Events of Default
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57
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20
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Representations
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57
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21
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Information Undertakings
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63
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22
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Financial Covenants
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66
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23
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General Undertakings
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68
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24
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Events of Default
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75
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Section 9
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Changes to Parties
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81
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25
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Changes to the Lenders
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81
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26
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Changes to the Obligors
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87
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Section 10
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The Finance Parties
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89
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27
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Role of the Agent, the Security Agent and the Arranger
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89
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28
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Application of Proceeds
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101
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29
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Conduct of Business by the Finance Parties
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102
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30
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Sharing among the Finance Parties
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102
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Section 11
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Administration
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105
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31
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Payment Mechanics
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105
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32
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Set-Off
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108
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33
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Notices
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108
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34
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Calculations and Certificates
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111
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35
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Partial Invalidity
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112
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36
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Remedies and Waivers
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112
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37
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Amendments and Waivers
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112
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38
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Confidentiality
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119
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39
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Disclosure of Lender Details by Agent
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123
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40
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Counterparts
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124
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41
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Joint and Several Liability
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124
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Section 12
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Governing Law and Enforcement
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126
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42
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Governing Law
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126
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43
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Enforcement
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126
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Schedule 1
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The Original Lenders
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127
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Schedule 2
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Part I Conditions Precedent
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128
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Part II Conditions Subsequent
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132
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Schedule 3
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Utilisation Request
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133
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Schedule 4
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Form of Transfer Certificate
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134
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Schedule 5
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Form of Assignment Agreement
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137
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Schedule 6
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Form of Accession Deed
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141
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Schedule 7
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Form of Compliance Certificate
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143
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| (1) |
Erikub Shipping Company Inc. ("Erikub"), a company incorporated under the law of the Republic of the Marshall Islands, with its registered address at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; Wotho Shipping Company Inc. ("Wotho"), a company incorporated under the law of the Republic of the Marshall Islands with its registered address at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands MH 96960; (together the "Borrowers" and each a "Borrower") jointly and severally; and
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| (2) |
Diana Shipping Inc., a company incorporated under the
law of the Republic of the Marshall Islands, with its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (the "Original Guarantor"); and
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| (3) |
The Financial Institutions listed in Schedule 1 (The Original Lenders), each acting through its Facility Office (together the "Original Lenders" and each an "Original Lender"); and
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| (4) |
DNB Bank ASA, acting as mandated lead arranger and
bookrunner through its office at 8th floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF, England (in that capacity, the "Arranger");
and
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| (5) |
DNB Bank ASA, acting as agent through its office at
The Walbrook Building, 25 Walbrook, London EC4N 8AF, England (in that capacity, the "Agent"); and
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| (6) |
DNB Bank ASA, acting as swap provider through its
office at The Walbrook Building, 25 Walbrook, London EC4N 8AF, England (in that capacity, the "Swap Provider"); and
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| (7) |
DNB Bank ASA, acting as security agent through its
office at The Walbrook Building, 25 Walbrook, London EC4N 8AF, England (in that capacity, the "Security Agent").
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| (A) |
Each Borrower is the registered owner of the relevant Vessel.
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| (B) |
Each Original Lender has agreed to advance to the Borrowers on a joint and several basis its Commitment (aggregating, with all the other Commitments, up to
$19,000,000) to provide the Borrowers with working capital.
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| Section 1 |
Interpretation
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| 1. |
Definitions and Interpretation
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| 1.1 |
Definitions In this Agreement:
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| (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 an 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;
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| (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 for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.
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| (a) |
in relation to an Original Lender, the amount set opposite its name under the heading "Commitment" in Schedule 1 (The Original Lenders) and the amount of any other Commitment transferred to it under this Agreement; and
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| (b) |
in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,
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| (a) |
any Obligor , any other member of the Group or any of its advisers; or
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| (b) |
another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any Obligor , any other member of the Group or any
of its advisers,
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| (i) |
is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 38 (Confidentiality); or
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| (ii) |
is identified in writing at the time of delivery as non-confidential by any Obligor, any other member of the Group or any of its advisers; or
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| (iii) |
is known by that Finance Party before the date the information is disclosed to it in accordance with (a) or (b) or is lawfully obtained by that Finance
Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with any Obligor or any other member of the Group and which, in either case, as far as that Finance Party is aware, has not been
obtained in breach of, and is not otherwise subject to, any obligation of confidentiality.
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| (a) |
which has failed to make its participation in a Vessel Loan available (or has notified the Agent or the Borrowers (which have notified the Agent) that it
will not make its participation in a Vessel Loan available) by the Utilisation Date of that Vessel Loan in accordance with Clause 5.3 (Lenders'
participation); or
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| (b) |
which has otherwise rescinded or repudiated a Finance Document; or
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| (c) |
with respect to which an Insolvency Event has occurred and is continuing,
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| (i) |
its failure to pay is caused by:
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| (A) |
administrative or technical error; or
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| (B) |
a Disruption Event; and
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| (ii) |
the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.
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| (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 Loan (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
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| (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:
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| (i) |
from performing its payment obligations under the Finance Documents; or
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| (ii) |
from communicating with other Parties in accordance with the terms of the Finance Documents,
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| (a) |
any release, emission, spill or discharge into or upon the air, sea, land or soils (including the seabed) or surface water of Environmentally Sensitive
Material within or from a Vessel; or
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| (b) |
any incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged into or upon the air, sea, land or soils (including the
seabed) or surface water from a vessel other than a Vessel and which involves a collision between a Vessel and such other vessel or some other incident of navigation or operation, in either case, in connection with which a Vessel is
actually or potentially liable to be arrested, attached, detained or injuncted and a Vessel, any Obligor, any operator or manager of a Vessel or any combination of them is at fault or allegedly at fault or otherwise liable to any
legal or administrative action; or
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| (c) |
any other incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged into or upon the air, sea, land or soils
(including the seabed) or surface water otherwise than from a Vessel and in connection with which a Vessel is actually or potentially liable to be arrested and/or where any Obligor and/or any operator or manager of a Vessel is at
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| (a) |
in respect of a Lender, the office or offices notified by that 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 or offices through which it will perform its obligations under this Agreement; or
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| (b) |
in respect of any other Finance Party, the office in the jurisdiction in which it is resident for tax purposes.
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| (a) |
sections 1471 to 1474 of the Code or any associated regulations;
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| (b) |
any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in
either case) facilitates the implementation of any law or regulation referred to in (a); or
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| (c) |
any agreement pursuant to the implementation of any treaty, law or regulation referred to in (a) or (b) with the US Internal Revenue Service, the US
government or any governmental or taxation authority in any other jurisdiction.
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| (a) |
in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments
from sources within the US), 1 July 2014; or
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| (b) |
in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within (a), the first date from which such payment may become
subject to a deduction or withholding required by FATCA.
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| (a) |
moneys borrowed and debit balances at banks or other financial institutions;
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| (b) |
any acceptance under any acceptance credit or bill discounting facility (or dematerialised equivalent);
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| (c) |
any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;
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| (d) |
the amount of any liability in respect of any lease or hire purchase contract, a liability under which would, in accordance with GAAP, be treated as a
balance sheet liability;
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| (e) |
receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);
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| (f) |
any Treasury Transaction (and, when calculating the value of that Treasury Transaction, only the marked to market value (or, if any actual amount is due as
a result of the termination or close-out of that Treasury Transaction, that amount) shall be taken into account);
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| (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 in respect of (i) an underlying liability of an entity which
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| (h) |
any amount raised by the issue of shares which are redeemable (other than at the option of the issuer) before the end of the Facility Period or are
otherwise classified as borrowings under GAAP;
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| (i) |
any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind entering into the agreement is to raise
finance or to finance the acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 30 days after the date of supply;
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| (j) |
any amount raised under any other transaction (including any forward sale or purchase, sale and sale back or sale and leaseback agreement) having the
commercial effect of a borrowing or otherwise classified as borrowings under GAAP; and
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| (k) |
the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in (a) to (j).
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| (a) |
is dissolved (other than pursuant to a consolidation, amalgamation or merger);
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| (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;
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| (c) |
makes a general assignment, arrangement or composition with or for the benefit of its creditors;
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| (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;
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| (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 (d) and:
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| (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
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| (ii) |
is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;
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| (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;
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| (g) |
has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);
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| (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 (other than, for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a person or entity described in
(d));
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| (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;
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| (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 (a) to (i); or
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| (k) |
takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.
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| (a) |
the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Vessel Loan; and
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| (b) |
the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Vessel Loan,
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| (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;
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| (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;
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| (c) |
similar principles, rights and defences under the laws of any Relevant Jurisdiction; and
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| (d) |
any other matters which are set out as qualifications or reservations as to matters of law of general application in the Legal Opinions.
|
| (a) |
any Original Lender; and
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| (b) |
any bank, financial institution, trust, fund or other entity which has become a Party as a Lender in accordance with Clause 25 (Changes to the Lenders),
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| (a) |
the applicable Screen Rate; or
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| (b) |
(if no Screen Rate is available for the relevant Interest Period) the Interpolated Screen Rate for that Vessel Loan; or
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| (c) |
(if (i) no Screen Rate is available for the currency of that Vessel Loan or (ii) no Screen Rate is available for the relevant Interest Period and it is not
possible to calculate the Interpolated Screen Rate for that Vessel Loan)) the Reference Bank Rate,
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| (a) |
they will remain the commercial or technical managers of the Vessels (as the case may be); and
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| (b) |
they will not, without the prior written consent of the Agent, subcontract or delegate the commercial or technical management of the Vessels (as the case
may be) to any third party; and
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| (c) |
the interests of the Managers in the Insurances will be assigned to the Security Agent with first priority; and
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| (d) |
(following the occurrence of an Event of Default) all claims of the Managers against the Borrowers shall be subordinated to the claims of the Finance
Parties under the Finance Documents.
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| (a) |
the business, operations, property, condition (financial or otherwise) or prospects of any Obligor or the Group taken as a whole; or
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| (b) |
the ability of any Obligor to perform its obligations under any Finance Document; or
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| (c) |
the validity or enforceability of, or the effectiveness or ranking of any Encumbrance 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.
|
| (a) |
(subject to (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in
which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;
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| (b) |
If there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that
calendar month; and
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| (c) |
If an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in
which that Interest Period is to end.
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| (a) |
of trading stock or cash made by any Obligor in the ordinary course of trading of the disposing entity;
|
| (b) |
of any asset by any Obligor or any other member of the Group (the "Disposing Company") to any other Obligor or any other member of the Group (the "Acquiring Company"), but if:
|
| (i) |
the Disposing Company is an Obligor, the Acquiring Company must also be an Obligor;
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| (ii) |
the Disposing Company had given any Encumbrance over the asset, the Acquiring Company must give an equivalent Encumbrance over that asset; and
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| (iii) |
the Disposing Company is a Guarantor, the Acquiring Company must guarantee at all times an amount no less than that guaranteed by the Disposing Company;
|
| (c) |
of assets in exchange for other assets comparable or superior as to type, value and quality (other than an exchange of a non-cash asset for cash);
|
| (d) |
of obsolete or redundant vehicles, plant and equipment for cash; and
|
| (e) |
arising as a result of any Permitted Encumbrance.
|
| (a) |
any Encumbrance which has been disclosed to the Agent prior to the date of this Agreement and which has the prior written approval of the Agent;
|
| (b) |
any Encumbrance in favour of a Finance Party created pursuant to the Finance Documents
|
| (c) |
any Encumbrance arising by operation of law and in the ordinary course of trading and not as a result of any default or omission by an Obligor or any other
member of the Group which has not been discharged within 30 days of its creation;
|
| (d) |
any Quasi-Security arising as a result of a disposal which is a Permitted Disposal.
|
| (a) |
in relation to LIBOR as either:
|
| (iv) |
if:
|
| (A) |
the Reference Bank is a contributor to the applicable Screen Rate; and
|
| (B) |
it consists of a single figure,
|
| (v) |
in any other case, the rate at which the relevant Reference Bank could fund itself in the relevant currency for the relevant period with reference to the
unsecured wholesale funding market.
|
| (a) |
the Obligors and each of their Subsidiaries and each member of the Group; and
|
| (b) |
each of their directors, officers, employees, agents and representatives.
|
| (a) |
its Original Jurisdiction;
|
| (b) |
any jurisdiction where any asset subject to or intended to be subject to a Security Document to be executed by it is situated;
|
| (c) |
any jurisdiction where it conducts its business; and
|
| (d) |
the jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it.
|
| (a) |
listed on any Sanctions List or targeted by Sanctions (whether designated by name or by reason of being included in a class of person); or
|
| (b) |
located in or incorporated under the laws of any country or territory that is the target of comprehensive, country- or territory-wide Sanctions; or
|
| (c) |
directly or indirectly owned or controlled by, or acting on behalf, at the direction or for the benefit of, a person referred to in (a) and/or (to the
extent relevant under Sanctions) (b) above.
|
| (a) |
the lists of Sanctions designations and/or targets maintained by any Sanctions Authority and/or
|
| (b) |
any other Sanctions designation or target listed and/or adopted by a Sanctions Authority,
|
| (a) |
an actual, constructive, arranged, agreed or compromised total loss of a Vessel; or
|
| (b) |
the requisition for title or compulsory acquisition of a Vessel by any government or other competent authority (other than by way of requisition for hire);
or
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| (c) |
the capture, seizure, arrest, detention, hijacking, theft, condemnation as prize, confiscation or forfeiture of a Vessel (not falling within (b)), unless
that Vessel is released and returned to the possession of the relevant Borrower or a Charterer (if the Charter is a bareboat Charter) within 30 days after the capture, seizure, arrest, detention, hijacking, theft, condemnation as
prize, confiscation or forfeiture in question.
|
| (a) |
the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate; and
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| (b) |
the date on which the Agent executes the relevant Assignment Agreement or Transfer Certificate.
|
| (a) |
all benefits derived by the Security Agent from Clause 17 (Accounts
and Application of Earnings); and
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| (b) |
all benefits arising under (including, without limitation, all proceeds of the enforcement of) each of the Security Documents,
|
| (a) |
an Obligor which is resident for tax purposes in the US; or
|
| (b) |
an Obligor some or all of whose payments under the Finance Documents are from sources within the US for US federal income tax purposes.
|
| (a) |
any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and
|
| (b) |
any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred
to in (a), or imposed elsewhere.
|
| 1.2 |
Construction Unless a contrary indication appears,
any reference in this Agreement to:
|
| 1.2.1 |
any "Lender", any "Borrower", any "Guarantor", the "Arranger", the "Agent", the "Swap Provider", any "Secured Party",
the "Security Agent", any "Finance
Party" or any "Party" shall be construed so as to include its successors in title, permitted assignees and permitted
transferees to, or of, its rights and/or obligations under the Finance Documents;
|
| 1.2.2 |
"assets" includes present and future properties,
revenues and rights of every description;
|
| 1.2.3 |
a "Finance Document", a "Security Document", a "Relevant Document" or any
other agreement or instrument is a reference to that Finance Document, Security Document, Relevant Document or other agreement or instrument as amended, novated, supplemented, extended or restated from time to time;
|
| 1.2.4 |
a "group of Lenders" includes all the Lenders;
|
| 1.2.5 |
"guarantee" means (other than in Clause 19 (Guarantee and Indemnity)) 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 assumed in
order to maintain or assist the ability of such person to meet its indebtedness;
|
| 1.2.6 |
"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;
|
| 1.2.7 |
a "person" includes any individual, firm, company,
corporation, government, state or agency of a state or any association, trust, joint venture, consortium, partnership or other entity (whether or not having separate legal personality);
|
| 1.2.8 |
a "regulation" includes any regulation, rule,
official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or
organisation;
|
| 1.2.9 |
a provision of law is a reference to that provision as amended or re-enacted from time to time;
|
| 1.2.10 |
a time of day is a reference to London time; and
|
| 1.2.11 |
the determination of the extent to which a rate is "for a
period equal in length" to an Interest Period shall disregard any inconsistency arising from the last day of that Interest Period being determined pursuant to the terms of this Agreement.
|
| 1.3 |
Headings Section, Clause and Schedule headings are
for ease of reference only.
|
| 1.4 |
Defined terms 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.
|
| 1.5 |
Default 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.
|
| 1.6 |
Currency symbols and definitions "$", "USD" and "dollars" denote the lawful currency of the
United States of America.
|
| 1.7 |
Third party rights
|
| 1.7.1 |
Unless expressly provided to the contrary in a Finance Document a person who is not a Party 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 this Agreement.
|
| 1.7.2 |
Notwithstanding any term of any Finance Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement at any
time.
|
| 1.8 |
Offer letter This Agreement supersedes the terms
and conditions contained in any correspondence relating to the subject matter of this Agreement exchanged between any Finance Party and the Borrowers or their representatives before the date of this Agreement.
|
| 1.9 |
Contractual recognition of bail-in
|
| 1.9.1 |
In this Clause 1.9:
|
| (a) |
in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for
the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and
|
| (b) |
in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion
Powers contained in that law or regulation.
|
| (a) |
in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that
Bail-In Legislation in the EU Bail-In Legislation Schedule; and
|
| (b) |
in relation to any other applicable Bail-In Legislation:
|
| (i) |
any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial
institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which
|
| (ii) |
any similar or analogous powers under that Bail-In Legislation.
|
| 1.9.2 |
Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and
accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect
of:
|
| (a) |
any Bail-In Action in relation to any such liability, including (without limitation):
|
| (i) |
a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such
liability;
|
| (ii) |
a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and
|
| (iii) |
a cancellation of any such liability; and
|
| (b) |
a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.
|
| Section 2 |
The Loan
|
| 2. |
The Loan
|
| 2.1 |
Amount Subject to the terms of this Agreement, the
Lenders agree to make available to the Borrowers on a joint and several basis a term loan comprising all the Vessel Loans and not exceeding in aggregate the Maximum Loan Amount.
|
| 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 is a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with Clause 2.2.3. The rights of each Finance Party
include any debt owing to that Finance Party under the Finance Documents and, for the avoidance of doubt, any part of the Loan or any other amount owed by an Obligor which relates to a Finance Party's participation in the Loan or its
role under a Finance Document (including any such amount payable to the Agent on its behalf) is a debt owing to that Finance Party by that Obligor.
|
| 2.2.3 |
A Finance Party may, except as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance
Documents.
|
| 3. |
Purpose
|
| 3.1 |
Purpose The Borrowers shall apply the Loan for the
purposes referred to in Preliminary (B).
|
| 3.2 |
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 |
Initial conditions precedent
|
| 4.1.1 |
The Lenders will only be obliged to comply with Clause 5.3 (Lenders'
participation) in relation to the advance of a Vessel Loan if, on or before the relevant Utilisation Date, the Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent, save that references in Section 2 of that Part I to "the Vessel" or to any person
or document relating to a Vessel shall be deemed to relate solely to the Vessel specified in the relevant Utilisation Request or to any person or document relating to that Vessel
|
| 4.1.2 |
Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in Clause
4.1.1, the Lenders authorise (but do not require) the Agent to give that notification. The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.
|
| 4.2 |
Further conditions precedent
|
| 4.2.1 |
The Lenders will only be obliged to advance a Vessel Loan if on the date of the relevant Utilisation Request and on the proposed Utilisation Date:
|
| (a) |
no Default is continuing or would result from the advance of that Vessel Loan; and
|
| (b) |
the representations made by each Borrower and each Guarantor under Clause 20 (Representations) are true; and
|
| (c) |
no event or series of event has occurred which is likely to have a Material Adverse Effect
|
| 4.2.2 |
The Lenders will only be obliged to advance a Vessel Loan if that Vessel Loan will not amount to more than 65% of the Market Value of the relevant Vessel
nor increase the Loan to a sum in excess of the Maximum Loan Amount nor result in more than 50% of the Maximum Loan Amount being advanced for any one Vessel.
|
| 4.3 |
Conditions subsequent The Borrowers undertake to
deliver or to cause to be delivered to the Agent within 10 days after each Utilisation Date the additional documents and other evidence listed in Part II of Schedule 2 (Conditions Subsequent), save that references in that Part II to "the Vessel" or to any person or document relating to a Vessel shall be deemed to relate solely to the Vessel specified in the
relevant Utilisation Request or to any person or document relating to that Vessel respectively.
|
| 4.4 |
No waiver If the Lenders agree to advance a Vessel
Loan to the Borrowers before all of the documents and evidence required by Clause 4.1 (Initial conditions precedent) have been
delivered to or to the order of the Agent, the Borrowers undertake to deliver all outstanding documents and evidence to or to the order of the Agent no later than 30 days after the relevant Utilisation Date or such other date
specified by the Agent (acting on the instructions of all the Lenders).
|
| 4.5 |
Form and content All documents and evidence
delivered to the Agent under this Clause shall:
|
| 4.5.1 |
be in form and substance acceptable to the Agent; and
|
| 4.5.2 |
if required by the Agent, be certified, notarised, legalised or attested in a manner acceptable to the Agent.
|
| Section 3 |
Utilisation
|
| 5. |
Advance
|
| 5.1 |
Delivery of a Utilisation Request The Borrowers
may request a Vessel Loan to be advanced by delivery to the Agent of a duly completed Utilisation Request not more than ten and not fewer than three Business Days before the proposed Utilisation Date.
|
| 5.2 |
Completion of a Utilisation Request A Utilisation
Request is irrevocable and will not be regarded as having been duly completed unless:
|
| 5.2.1 |
it is signed by an authorised signatory of each Borrower;
|
| 5.2.2 |
the proposed Utilisation Date is a Business Day within the Availability Period; and
|
| 5.2.3 |
the proposed Interest Period complies with Clause 9 (Interest
Periods).
|
| 5.3 |
Lenders' participation
|
| 5.3.1 |
Subject to Clauses 2 (The Loan), 3 (Purpose) and 4 (Conditions of
Utilisation), each Lender shall make its participation in any Vessel Loan available by the relevant Utilisation Date through its Facility Office.
|
| 5.3.2 |
The amount of each Lender's participation in any Vessel Loan will be equal to the proportion borne by its Commitment to the Total Commitments.
|
| 5.4 |
Cancellation of Commitment The Total Commitments
shall be cancelled at the end of the Availability Period to the extent that they are unutilised at that time.
|
| Section 4 |
Repayment, Prepayment and Cancellation
|
| 6. |
Repayment
|
| 6.1 |
Repayment of each Vessel Loan The Borrowers shall
repay each Vessel Loan to the Agent for the account of the Lenders by 20 consecutive quarterly instalments the first 19 such instalments for each Vessel Loan shall each be in the sum of $238,640 and the final such instalments in the
sum of $4,965,840 (comprising an instalment of $238,640 and a balloon amount of $4,727,200), the first instalment for each Vessel Loan falling due on the date which is three Months after the Utilisation Date in respect of that Vessel
Loan and subsequent instalments falling due at consecutive intervals of three Months thereafter and with the final repayment instalment for each Vessel Loan falling due on the Termination Date.
|
| 6.2 |
Reduction of Repayment Instalments If the aggregate
amount advanced to the Borrowers in respect of a Vessel Loan is less than $9,500,000, the amount of each Repayment Instalment in respect of that Vessel Loan shall be reduced pro rata to the amount actually advanced.
|
| 6.3 |
Reborrowing The Borrowers may not reborrow any part
of a Vessel Loan which is repaid.
|
| 6.4 |
Termination Date On the Termination Date the
Borrowers shall pay to the Finance Parties any and all outstanding sums of any nature (together with all accrued and unpaid interest on any of those sums) payable to any of the Finance Parties under all or any of the Finance
Documents.
|
| 7. |
Illegality, Prepayment and Cancellation
|
| 7.1 |
Illegality If in any applicable jurisdiction it
becomes unlawful (other than by reason of Sanctions) for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in the Loan or it becomes unlawful for any Affiliate of a
Lender for that Lender to do so or any act or omission by an Obligor (or another Relevant Person) causes a breach of Sanctions by a Finance Party:
|
| 7.1.1 |
that Lender shall promptly notify the Agent upon becoming aware of that event;
|
| 7.1.2 |
upon the Agent notifying the Borrowers, the Commitment of that Lender will be immediately cancelled; and
|
| 7.1.3 |
to the extent that the Lender's participation has not been transferred pursuant to Clause 37.4 (Replacement of Lender), the Borrowers shall repay that Lender's participation in each Vessel Loan on the last day of its current Interest Period or, if earlier, the date specified by
that 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 Borrowers may, if they
give the Agent not less than 5 Business Days' (or such shorter period as the Majority Lenders may agree) prior
|
| 7.3 |
Voluntary prepayment of a Vessel Loan The Borrowers
may prepay the whole or any part of a Vessel Loan (but, if in part, being an amount that reduces that Vessel Loan by an amount which is an integral multiple of $238,640) subject as follows:
|
| 7.3.1 |
they give the Agent not less than 5 Business Days' (or such shorter period as the Majority Lenders may agree) prior notice;
|
| 7.3.2 |
a Vessel Loan may only be prepaid after the last day of the Availability Period; and
|
| 7.3.3 |
any prepayment under this Clause 7.3 shall be applied in prepayment of the remaining Repayment Instalments in respect of that Vessel Loan on a pro rata
basis.
|
| 7.4 |
Right of cancellation and prepayment in relation to a single Lender
|
| 7.4.1 |
If:
|
| (a) |
any sum payable to any Lender by the Borrowers is required to be increased under Clause 12.2.2 (Tax gross-up); or
|
| (b) |
any Lender claims indemnification from the Borrowers under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs),
|
| 7.4.2 |
On receipt of a notice referred to in Clause 7.4.1 in relation to a Lender, the Commitment(s) of that Lender shall immediately be reduced to zero.
|
| 7.4.3 |
On the last day of the Interest Period in respect of each Vessel Loan which ends after the Borrowers have given notice under Clause 7.4.1 in relation to a
Lender (or, if earlier, the date specified by the Borrowers in that notice), the Borrowers shall repay that Lender's participation in that Vessel Loan together with all interest and other amounts accrued under the Finance Documents.
|
| 7.5 |
Mandatory prepayment on sale or Total Loss
|
| 7.5.1 |
If a Vessel is sold by a Borrower or becomes a Total Loss, the Borrowers shall, simultaneously with any such sale or on the earlier of the date falling 120
days after any such Total Loss and the date on which the proceeds of any such Total Loss are realised, prepay the Loan in an amount not less than the
relevant Mandatory Prepayment Amount and any prepayment under this Clause 7.5 shall be applied (a) first in prepayment of the remaining Repayment Instalments (including the relevant Balloon) in respect of that Vessel Loan in inverse
order of maturity and (b) second against the remaining Vessel Loan in prepayment of the remaining Repayment Instalments (including the relevant Balloon) in
|
| 7.5.2 |
For the purposes of Clause 7.5.1, the Market Value shall be determined by valuations not older than 30 days prior to the date of prepayment under Clause
7.5.1 (Mandatory prepayment on sale or Total Loss).
|
| 7.5.3 |
For the purpose of Clause 7.5, "Mandatory Prepayment Amount"
means, in respect of a Vessel, an amount equal to the greater of:
|
| (a) |
whole of the Vessel Loan in respect of that Vessel then outstanding; and
|
| (b) |
an amount equal to the Market Value of the relevant Vessel divided by the aggregate Market Value of both Vessels and multiplied by the amount of the Loan
outstanding at the time of such sale or Total Loss.
|
| 7.6 |
Right of cancellation in relation to a Defaulting Lender
If any Lender becomes a Defaulting Lender, the Borrowers may, at any time while the Lender continues to be a Defaulting Lender, give the Agent 5 Business Days' notice of cancellation of the Commitment of that Lender. On that notice
becoming effective, the Commitment of the Defaulting Lender shall immediately be reduced to zero. The Agent shall as soon as practicable after receipt of that notice notify all the Lenders.
|
| 7.7 |
Restrictions Any notice of prepayment or
cancellation given 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 prepayment or cancellation is to be made and the amount
of that prepayment or cancellation.
|
| Section 5 |
Costs of Utilisation
|
| 8. |
Interest
|
| 8.1 |
Calculation of interest The rate of interest on
each Vessel Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:
|
| 8.1.1 |
Margin; and
|
| 8.1.2 |
LIBOR.
|
| 8.2 |
Payment of interest The Borrowers shall pay accrued
interest on each Vessel Loan on the last day of each Interest Period (and, if the Interest Period is longer than three Months, on the dates falling at intervals of three Months after the first day of the Interest Period).
|
| 8.3 |
Default interest
|
| 8.3.1 |
If a Borrower or a Guarantor 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 is two per cent per annum higher than the rate which would have been payable if the overdue amount had, during the period of
non-payment, constituted a Vessel Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).
|
| 8.3.2 |
If an Event of Default occurs (other than under Clause 24.1.1 (Non-payment)) interest shall accrue on the Loan, for the period during which such Event of Default is continuing (before and after judgement) at a rate which is two percent per annum higher than the interest which is
payable on the Loan for successive Interest Periods each of a duration selected by the Agent (acting reasonably).
|
| 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. Any interest accruing under this Clause 8.3 shall be immediately payable by the Borrower or the Guarantor on demand by the Agent.
|
| 8.4 |
Notification of rates of interest The Agent shall
promptly notify the Borrowers of the determination of a rate of interest under this Agreement.
|
| 8.5 |
Interest rate hedging Subject to the Master
Agreement having been entered into between the Borrowers and the Swap Provider, the Borrowers may enter into one or more interest rate swaps, as approved by the Swap Provider, in order to fix the interest rate of the Loan for a period
longer than twelve (12) months, PROVIDED THAT interest shall accrue and be due and payable on a quarterly basis and FURTHER PROVIDED THAT payment of the accrued interest for the last Interest Period does not exceed the Termination
Date.
|
| 9. |
Interest Periods
|
| 9.1 |
Selection of Interest Periods The Borrowers may
select in a written notice to the Agent the duration of an Interest Period for each Vessel Loan subject as follows:
|
| 9.1.1 |
each notice is irrevocable and must be delivered to the Agent by the Borrowers not later than 11.00 a.m. on the Quotation Day;
|
| 9.1.2 |
if the Borrowers fail to give a notice in accordance with Clause 9.1.1, the relevant Interest Period will, subject to Clauses 9.2 (Interest Periods to meet Repayment Dates) and 9.3 (Non-Business
Days), be three Months;
|
| 9.1.3 |
subject to this Clause 9, the Borrowers may select an Interest Period of three or six or twelve Months or any other period agreed between the Borrowers and
the Agent (acting on the instructions of all the Lenders);
|
| 9.1.4 |
an Interest Period shall not extend beyond the Termination Date; and
|
| 9.1.5 |
each Interest Period shall start on the Utilisation Date of the Vessel Loan or (if the Vessel Loan is already advanced) on the last day of the preceding
Interest Period and end on the date which numerically corresponds to the Utilisation Date of the Vessel Loan or the last day of the preceding Interest Period in the relevant Month.
|
| 9.2 |
Interest Periods to meet Repayment Dates If an
Interest Period will expire after the next Repayment Date in respect of the relevant Vessel Loan, there shall be a separate Interest Period for a part of that Vessel Loan equal to the Repayment Instalment due on that next Repayment
Date and that separate Interest Period shall expire on that next Repayment Date.
|
| 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 |
Calculation of Reference Bank Rate
|
| 10.1.1 |
Subject to Clause 10.1.2, if LIBOR is to be determined by reference to a Reference Bank Rate but a Reference Bank does not supply a quotation by 11.00 am
on the Quotation Day, the Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Reference Banks.
|
| 10.1.2 |
If at or about noon on the Quotation Day for the relevant Interest Period LIBOR is to be determined by reference to the Reference Bank Rate and none or
only one of the Reference Banks supplies a rate to the Agent to determine LIBOR for dollars, Clause 10.3 (Cost of funds) shall
apply to the relevant Vessel Loan for the relevant Interest Period.
|
| 10.2 |
Market disruption If 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 relevant
|
| 10.3 |
Cost of funds
|
| 10.3.1 |
If this Clause 10.3 applies for any Interest Period, then the rate of interest on each Lender's share of the relevant Vessel Loan for that Interest Period
shall be the percentage rate per annum which is the sum of:
|
| (a) |
the Margin; and
|
| (b) |
the rate notified to the Agent by that Lender as soon as practicable, and in any event by close of business on the date falling three Business Days after
the Quotation Day (or, if earlier, on the date falling three Business Days prior to the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate per annum the cost
to that Lender of funding its participation in the relevant Vessel Loan from whatever source it may reasonably select.
|
| 10.3.2 |
If this Clause 10.3 applies and the Agent or the Borrowers so require, the Agent and the Borrowers shall enter into negotiations (for a period of not more
than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.
|
| 10.3.3 |
Any alternative basis agreed pursuant to Clause 10.3.1 shall, with the prior consent of all the Lenders and the Borrowers, be binding on all Parties.
|
| 10.3.4 |
If an alternative basis is not agreed pursuant to Clause 10.3.1, the Borrowers will immediately prepay the relevant Commitment together with Break Costs and
the remaining Repayment Instalments in respect of the relevant Vessel Loan shall be reduced pro rata.
|
| 10.4 |
Break Costs The Borrowers 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 a Vessel Loan or Unpaid Sum being paid by the Borrowers on a day other than the last day of an Interest Period
for that Vessel Loan or Unpaid Sum.
|
| 11. |
Fees
|
| 11.1 |
Commitment Fee If the Lenders agree to extend the
Availability Period to a date that falls after 20 March 2019 for reasons attributable to the Obligors, the Borrowers shall pay to the Agent (for the account of the Lenders in proportion to their Commitments) a fee computed at the rate
of 0.2 per cent per annum on the undrawn amount of the Loan for the period commencing on 20 March 2019 and ending on the earlier of the Utilisation Date and the last day of the Availability Period (as extended by the Lenders).
|
| 11.2 |
Arrangement fee The Borrowers shall pay to the
Arranger an arrangement fee in the amount and at the times agreed in the Fee Letter.
|
| Section 6 |
Additional Payment Obligations
|
| 12. |
Tax Gross Up and Indemnities
|
| 12.1 |
Definitions In this Agreement:
|
| (a) |
where it relates to a Treaty Lender that is an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated opposite that
Lender's name in Schedule 1 (The Original Lenders) and is filed with HM Revenue & Customs within 30 days of the date of this
Agreement; or
|
| (b) |
where it relates to a Treaty Lender that is not an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated in respect
of that Lender in the documentation which it executes on becoming a Party as a Lender and is filed with HM Revenue & Customs within 30 days of the relevant Transfer Date.
|
| (a) |
which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Finance Document and is within the charge to United Kingdom
corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or in respect of an advance made under a Finance Document
by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the time that that advance was made and within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of
that advance; or
|
| (b) |
which is:
|
| (i) |
a company resident in the United Kingdom for United Kingdom tax purposes;
|
| (ii) |
a partnership each member of which is:
|
| (A) |
a company so resident in the United Kingdom; or
|
| (B) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest
|
| (iii) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company; or
|
| (c) |
which is a Treaty Lender.
|
| (a) |
a company resident in the United Kingdom for United Kingdom tax purposes;
|
| (b) |
a partnership each member of which is:
|
| (i) |
a company so resident in the United Kingdom; or
|
| (ii) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or
|
| (c) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.
|
| (a) |
is treated as a resident of a Treaty State for the purposes of the Treaty;
|
| (b) |
does not carry on a business in the United Kingdom through a permanent establishment with which that Lender's participation in the Loan is effectively
connected.
|
| 12.2 |
Tax gross-up Each Borrower shall (and shall procure
that each other Obligor will) make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law, subject as follows:
|
| 12.2.1 |
a Borrower shall promptly upon becoming aware that it or any other 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 Borrowers and any such other Obligor;
|
| 12.2.2 |
if a Tax Deduction is required by law to be made by a Borrower or any other Obligor, the amount of the payment due from that Borrower or that other Obligor
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;
|
| 12.2.3 |
a payment shall not be increased under Clause 12.2.2 by reason of a Tax Deduction on account of Tax imposed by the United Kingdom, if on the date on which
the payment falls due:
|
| (a) |
the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is
not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty or any
published practice or published concession of any relevant taxing authority; or
|
| (b) |
the relevant Lender is a Qualifying Lender solely by virtue of (b) of the definition of Qualifying Lender and:
|
| (i) |
an officer of H.M. Revenue & Customs has given (and not revoked) a direction (a "Direction") under section 931 of the ITA which relates to the payment and that Lender has received from the Borrower or from the other Obligor making the payment a certified copy of that Direction;
and
|
| (ii) |
the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or
|
| (c) |
the relevant Lender is a Qualifying Lender solely by virtue of (b) of the definition of Qualifying Lender and:
|
| (i) |
the relevant Lender has not given a Tax Confirmation to the Borrowers; and
|
| (ii) |
the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Borrowers, on the basis that the
Tax Confirmation would have enabled the Borrowers to have formed a reasonable belief that the payment was an "excepted payment" for the purpose of section 930 of the ITA; or
|
| (d) |
the relevant Lender is a Treaty Lender and the Borrower or the other Obligor making the payment is able to demonstrate that the payment could have been made
to that Lender without the Tax Deduction had that Lender complied with its obligations under Clause 12.2.6 or Clause 12.2.7 (as applicable);
|
| 12.2.4 |
if a Borrower or any other Obligor is required to make a Tax Deduction, that Borrower shall (and shall procure that such other Obligor will) 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 Borrower making that Tax Deduction shall
(and shall procure that such other Obligor will) deliver to the Agent for the Finance Party entitled to the payment a statement under section 975 of the ITA or other 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;
|
| 12.2.6 | (a) | Subject to (b), a Treaty Lender and each Borrower which makes a payment to which that Treaty Lender is entitled shall co-operate (and the Borrowers shall procure that each other Obligor which makes a payment to which that Treaty Lender is entitled will co-operate) in completing any procedural formalities necessary for that Borrower or that other Obligor to obtain authorisation to make that payment without a Tax Deduction. |
| (b) | (i) | A Treaty Lender which is an Original Lender and that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence opposite its name in Schedule 1 (The Original Lenders); and |
| (ii) |
a Treaty Lender which is not an Original Lender and that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to
this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence in the documentation which it executes on becoming a Party as a Lender,
|
| 12.2.7 |
If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with Clause 12.2.6(b) and:
|
| (a) |
a Borrower making a payment to that Lender has not made a Borrower DTTP Filing in respect of that Lender; or
|
| (b) |
a Borrower making a payment to that Lender has made a Borrower DTTP Filing in respect of that Lender but:
|
| (i) |
that Borrower DTTP Filing has been rejected by HM Revenue & Customs; or
|
| (ii) |
HM Revenue & Customs has not given that Borrower authority to make payments to that Lender without a Tax Deduction within 60 days of the date of the
Borrower DTTP Filing,
|
| 12.2.8 |
If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with Clause 12.2.6(b), no Borrower shall make a
Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender's Commitment(s) or its participation in the Loan unless the Lender otherwise agrees.
|
| 12.2.9 |
A Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Agent for delivery to the relevant Lender.
|
| 12.2.10 |
A UK Non-Bank Lender shall promptly notify the Borrowers and the Agent if there is any change in the position from that set out in the Tax Confirmation.
|
| 12.3 |
Tax indemnity
|
| 12.3.1 |
Each 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.
|
| 12.3.2 |
Clause 12.3.1 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,
|
| (b) |
to the extent a loss, liability or cost:
|
| (i) |
is compensated for by an increased payment under Clause 12.2 (Tax gross-up);
|
| (ii) |
would have been compensated for by an increased payment under Clause 12.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in Clause 12.2.3 (Tax
gross-up) applied; or
|
| (iii) |
relates to a FATCA Deduction required to be made by a Party.
|
| 12.3.3 |
A Protected Party making, or intending to make a claim under Clause 12.3.1 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 Borrowers.
|
| 12.3.4 |
A Protected Party shall, on receiving a payment from a Borrower under this Clause 12.3, notify the Agent.
|
| 12.4 |
Tax Credit If a Borrower or any other Obligor makes
a Tax Payment and the relevant Finance Party determines that:
|
| 12.4.1 |
a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which
that Tax Payment was required; and
|
| 12.4.2 |
that Finance Party has obtained and utilised that Tax Credit,
|
| 12.5 |
Lender status confirmation Each Lender which is not
an Original Lender shall indicate, in the documentation which it executes on becoming a Party as a Lender,
|
| 12.5.1 |
not a Qualifying Lender;
|
| 12.5.2 |
a Qualifying Lender (other than a Treaty Lender); or
|
| 12.5.3 |
a Treaty Lender.
|
| 12.6 |
Stamp taxes The Borrowers 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.
|
| 12.7 |
VAT
|
| 12.7.1 |
All amounts expressed to be payable under a Finance Document by any Party or any Obligor to a Finance Party which (in whole or in part) constitute the
consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to Clause 12.7.2, if VAT is or becomes chargeable on any supply made by any Finance
Party to any Party or any Obligor under a Finance Document and such Finance Party is required to account to the relevant tax authority for the VAT, that Party or Obligor must pay to such Finance Party (in addition to and at the same
time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice to the Borrowers).
|
| 12.7.2 |
If VAT is or becomes chargeable on any supply made by any Finance Party (the "Supplier") to any other Finance Party (the "Recipient") under a Finance Document, and any Party other
than the Recipient (the "Relevant Party") is required by the terms of any Finance Document to pay an amount equal to the
consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):
|
| (a) |
(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the
same time as paying that amount) an additional amount equal to the amount of the VAT. The Recipient must (where this Clause 12.7.2(a) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the
Recipient receives from the relevant tax authority which the
|
| (b) |
(where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from
the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in
respect of that VAT.
|
| 12.7.3 |
Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as
the case may be) such Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or
repayment in respect of such VAT from the relevant tax authority.
|
| 12.7.4 |
Any reference in this Clause 12.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where
appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term "representative member" to have the same meaning as in the Value Added Tax Act 1994).
|
| 12.7.5 |
In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must
promptly provide such Finance Party with details of that Party's VAT registration and such other information as is reasonably requested in connection with such Finance Party's VAT reporting requirements in relation to such supply.
|
| 12.8 |
FATCA information
|
| 12.8.1 |
Subject to Clause 12.8.3, each Party shall, within ten Business Days of a reasonable request by another Party:
|
| (a) |
confirm to that other Party whether it is:
|
| (i) |
a FATCA Exempt Party; or
|
| (ii) |
not a FATCA Exempt Party;
|
| (b) |
supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for
the purposes of that other Party's compliance with FATCA; and
|
| (c) |
supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes
of that other Party's compliance with any other law, regulation, or exchange of information regime.
|
| 12.8.2 |
If a Party confirms to another Party pursuant to Clause 12.8.1(a)(i) that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has
ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.
|
| 12.8.3 |
Clause 12.8.1 shall not oblige any Finance Party to do anything, and Clause 12.8.1(c) shall not oblige any other Party to do anything, which would or might
in its reasonable opinion constitute a breach of:
|
| (a) |
any law or regulation;
|
| (b) |
any fiduciary duty; or
|
| (c) |
any duty of confidentiality.
|
| 12.8.4 |
If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with
Clause 12.8.1(a) or 12.8.1(b) (including, for the avoidance of doubt, where Clause 12.8.3 applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt
Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.
|
| 12.8.5 |
If a Borrower is a US Tax Obligor or the Agent reasonably believes that its obligations under FATCA or any other applicable law or regulation require it,
each Lender shall, within ten Business Days of:
|
| (a) |
where a Borrower is a US Tax Obligor and the relevant Lender is an Original Lender, the date of this Agreement;
|
| (b) |
where a Borrower is a US Tax Obligor on a date on which any other Lender becomes a Party as a Lender, that date; or
|
| (c) |
where a Borrower is not a US Tax Obligor, the date of a request from the Agent,
|
| (i) |
a withholding certificate on Form W-8 or Form W-9 or any other relevant form; or
|
| (ii) |
any withholding statement or other document, authorisation or waiver as the Agent may require to certify or establish the status of such Lender under FATCA
or that other law or regulation.
|
| 12.8.6 |
The Agent shall provide any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to Clause
12.8.5 to the Borrowers.
|
| 12.8.7 |
If any withholding certificate, withholding statement, document, authorisation or waiver provided to the Agent by a Lender pursuant to Clause 12.8.5 is or
becomes materially inaccurate or incomplete, that Lender shall promptly update it and provide such updated withholding
|
| 12.8.8 |
The Agent may rely on any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to Clause
12.8.5 or 12.8.7 without further verification. The Agent shall not be liable for any action taken by it under or in connection with Clause 12.8.5, 12.8.6 or 12.8.7.
|
| 12.9 |
FATCA Deduction
|
| 12.9.1 |
Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party
shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.
|
| 12.9.2 |
Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA
Deduction) notify the Party to whom it is making the payment and, in addition, shall notify the Borrowers and the Agent and the Agent shall notify the other Finance Parties.
|
| 13. |
Increased Costs
|
| 13.1 |
Increased costs Subject to Clause 13.3 (Exceptions) the Borrowers shall, within three Business Days of a demand by the Agent, pay to the Agent for the account of a Finance
Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation
or (ii) compliance with any law or regulation made after the date of this Agreement or (iii) the implementation or application of or compliance with Basel III or CRD IV or any other law or regulation which implements Basel III or CRD
IV (whether such implementation, application or compliance is by a government, regulator, that Finance Party or any of that Finance Party's Affiliates).
|
| (a) |
"Basel III" means:
|
| (i) |
the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient
banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel
Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;
|
| (ii) |
the rules for global systemically important banks contained in "Global systemically important banks: assessment methodology and the additional loss
absorbency requirement – Rules text" published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and
|
| (iii) |
any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III".
|
| (b) |
"CRD IV" means:
|
| (i) |
Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential
supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended, supplemented or restated;
|
| (ii) |
Regulation EU No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment
firms and amending Regulation EU No 648/2012, as amended, supplemented or restated; and
|
| (iii) |
any other law or regulation which implements Basel III.
|
| (c) |
"Increased Costs" means:
|
| (i) |
a reduction in the rate of return from the Loan or on a Finance Party's (or its Affiliate's) overall capital;
|
| (ii) |
an additional or increased cost; or
|
| (iii) |
a reduction of any amount due and payable under any Finance Document,
|
| 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 Borrowers.
|
| 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 Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost is:
|
| 13.3.1 |
attributable to a Tax Deduction required by law to be made by a Borrower or a Guarantor;
|
| 13.3.2 |
attributable to a FATCA Deduction required to be made by a Party;
|
| 13.3.3 |
compensated for by Clause 12.3 (Tax indemnity) (or would have
been compensated for under Clause 12.3 but was not so compensated solely because any of the exclusions in Clause 12.3 applied); or
|
| 13.3.4 |
attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation.
|
| 14. |
Other Indemnities
|
| 14.1 |
Currency indemnity If any sum due from a Borrower
or a Guarantor under the Finance Documents (a "Sum"), or any order, judgment or award given or made in relation to a Sum, has to be
converted from the currency (the "First Currency") in which that Sum is payable into another currency (the "Second Currency") for the purpose of:
|
| 14.1.1 |
making or filing a claim or proof against that Borrower or that Guarantor (as the case may be); or
|
| 14.1.2 |
obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,
|
| 14.2 |
Other indemnities
|
| 14.2.1 |
The Borrowers shall, within three Business Days of demand, indemnify each Secured Party against any cost, loss or liability incurred by that Secured 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 30 (Sharing among the Finance Parties);
|
| (c) |
funding, or making arrangements to fund, its participation in a Vessel Loan requested by the Borrowers in a Utilisation Request but not made by reason of
the operation of any one or more of the
|
| (d) |
a Vessel Loan (or part of a Vessel Loan) not being prepaid in accordance with a notice of prepayment given by the Borrowers;
|
| (e) |
any complaint, claim, proceeding, formal notice, investigation or other action by any regulatory authority or enforcement authority or third party
concerning any actual or alleged breach of Sanctions by any Finance Party in connection with (directly or indirectly) the Loan.
|
| 14.2.2 |
The Borrowers shall promptly indemnify each Finance Party, each Affiliate of a Finance Party and each officer or employee of a Finance Party or its
Affiliate (each such person for the purposes of this Clause 14.2 an "Indemnified Person") against any cost, loss or liability
incurred by that Indemnified Person pursuant to or in connection with any litigation, arbitration or administrative proceedings or regulatory enquiry, in connection with or arising out of the entry into and the transactions
contemplated by the Finance Documents, having the benefit of any Encumbrance constituted by the Finance Documents or which relates to the condition or operation of, or any incident occurring in relation to, a Vessel, unless such cost,
loss or liability is caused by the gross negligence or wilful misconduct of that Indemnified Person. Any Affiliate or any officer or employee of a Finance Party or its Affiliate may rely on this Clause 14.2 subject to Clause 1.7 (Third party rights) and the provisions of the Third Parties Act.
|
| 14.2.3 |
Subject to any limitations set out in Clause 14.2.2, the indemnity in that Clause shall cover any cost, loss or liability incurred by each Indemnified
Person in any jurisdiction:
|
| (a) |
arising or asserted under or in connection with any law relating to safety at sea, the ISM Code, any Environmental Law or any Sanctions; or
|
| (b) |
in connection with any Environmental Claim.
|
| 14.3 |
Indemnity to the Agent The Borrowers shall promptly
indemnify the Agent against:
|
| 14.3.1 |
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; or
|
| (b) |
acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised; or
|
| (c) |
instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement; and
|
| 14.3.2 |
any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise
than by reason of the Agent's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 31.11 (Disruption to payment systems etc.) notwithstanding the Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as
Agent under the Finance Documents.
|
| 14.4 |
Indemnity to the Security Agent Each Borrower and
each Guarantor jointly and severally shall promptly indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them as a result of:
|
| 14.4.1 |
any failure by the Borrowers to comply with their obligations under Clause 16 (Costs and Expenses);
|
| 14.4.2 |
acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised;
|
| 14.4.3 |
the taking, holding, protection or enforcement of the Security Documents;
|
| 14.4.4 |
the exercise of any of the rights, powers, discretions, authorities and remedies vested in the Security Agent and each Receiver and Delegate by the Finance
Documents or by law;
|
| 14.4.5 |
any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents; or
|
| 14.4.6 |
acting as Security Agent, Receiver or Delegate under the Finance Documents or which otherwise relates to any of the Charged Property (otherwise, in each
case, than by reason of the relevant Security Agent's, Receiver's or Delegate's gross negligence or wilful misconduct).
|
| 14.5 |
Indemnity survival The indemnities contained in
this Agreement shall survive repayment of the Loan.
|
| 15. |
Mitigation by the Lenders
|
| 15.1 |
Mitigation Each Finance Party shall, in
consultation with the Borrowers, take all reasonable steps to mitigate any circumstances which arise and which would result in any Vessel Loan ceasing to be available or any amount becoming payable under or pursuant to any of Clause
7.1 (Illegality), Clause 12 (Tax
Gross Up and Indemnities) or Clause 13 (Increased Costs) including (but not limited to) transferring its rights and
obligations under the Finance Documents to another Affiliate or Facility Office. The above does not in any way limit the obligations of any Obligor under the Finance Documents.
|
| 15.2 |
Limitation of liability The Borrowers shall
promptly indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 15.1 (Mitigation). A Finance Party is not obliged to take any steps under Clause 15.1 if, in its opinion (acting reasonably), to do so might be prejudicial to it.
|
| 16. |
Costs and Expenses
|
| 16.1 |
Transaction expenses The Borrowers shall promptly
on demand pay the Agent, the Security Agent and the Arranger the amount of all costs and expenses (including legal fees and costs related to operating a secure website for communicating with the Lenders) reasonably incurred by any of
them (and, in the case of the Security Agent, by any Receiver or Delegate) in connection with:
|
| 16.1.1 |
the negotiation, preparation, printing, execution, syndication and perfection of this Agreement, any other documents referred to in this Agreement and any
amendments to any Finance Documents;
|
| 16.1.2 |
the negotiation, preparation, printing, execution and perfection of any other Finance Documents executed after the date of this Agreement;
|
| 16.1.3 |
any other document which may at any time be required by a Finance Party to give effect to any Finance Document or which a Finance Party is entitled to call
for or obtain under any Finance Document; and
|
| 16.1.4 |
any discharge, release or reassignment of any of the Security Documents.
|
| 16.2 |
Amendment costs If (a) an Obligor requests an
amendment, waiver or consent or (b) an amendment is required pursuant to Clause 31.10 (Change of currency), the Borrowers shall,
within three Business Days of demand, reimburse each of the Agent and the Security Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by the Agent and the Security Agent (and, in the case of the
Security Agent, by any Receiver or Delegate) in responding to, evaluating, negotiating or complying with that request or requirement.
|
| 16.3 |
Agent and Security Agent's management time and additional
remuneration Any amount payable to the Agent under Clause 14.3 (Indemnity to the Agent) or to the Security Agent under
Clause 14.4 (Indemnity to the Security Agent) or to either of them under this Clause 16 or Clause 27.11 (Lenders' indemnity to the Agent) in connection with any amendment to the Finance Documents or after the occurrence of a Default, shall include the cost
of utilising the management time or other resources of the Agent or the Security Agent (as the case may be) and will be calculated on the basis of such reasonable daily or hourly rates as the Agent or the Security Agent may notify to
the Borrowers and the Lenders, and is in addition to any other fee paid or payable to the Agent or the Security Agent.
|
| 16.4 |
Enforcement and preservation costs The Borrowers
shall, promptly on demand, pay to each Finance Party and each other Secured Party the amount of all costs and expenses (including legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of
any rights under, any Finance Document and any proceedings instituted by or against the Security Agent as a consequence of taking or holding the Security Documents or enforcing those rights including (without limitation) any losses,
costs and expenses which that Finance Party or other Secured Party may from time to time sustain, incur or become liable for by reason of that Finance Party or other Secured Party being mortgagee of a Vessel and/or a lender to a
Borrower, or by reason of that Finance Party or other Secured Party being deemed by any court or authority to be an operator or controller, or in any way concerned in the operation or control, of a Vessel.
|
| 16.5 |
Other costs The Borrowers shall, promptly on
demand, pay to each Finance Party and each other Secured Party the amount of all sums which that Finance Party or other Secured Party may pay or become actually or contingently liable for on account of a Borrower in connection with a
Vessel (whether alone or jointly or jointly and severally with any other person) including (without limitation) all sums which that Finance Party or other Secured Party may pay or guarantees which it may give in respect of the
Insurances, any expenses incurred by that Finance Party or other Secured Party in connection with the maintenance or repair of a Vessel or in discharging any lien, bond or other claim relating in any way to a Vessel, and any sums
which that Finance Party or other Secured Party may pay or guarantees which it may give to procure the release of a Vessel from arrest or detention.
|
| Section 7 |
Accounts and Application of Earnings
|
| 17. |
Accounts
|
| 17.1 |
Earnings Accounts The Borrowers shall maintain the
Earnings Accounts with the Account Holder for the duration of the Facility Period free of Encumbrances and rights of set off other than those created by or under the Finance Documents.
|
| 17.2 |
Earnings The Borrowers shall procure that all
Earnings and any Requisition Compensation are credited to the Earnings Accounts.
|
| 17.3 |
Application of Earnings Account The Borrowers shall
transfer or cause to be transferred from the Earnings Account to the Agent for the account of the Lenders:
|
| 17.3.1 |
on each Repayment Date in respect of the relevant Vessel Loan, the amount of the Repayment Instalment then due; and
|
| 17.3.2 |
on each Interest Payment Date in respect of the relevant Vessel Loan, the amount of interest then due,
|
| 17.4 |
Borrowers' obligations not affected If for any
reason the amount standing to the credit of the Earnings Account is insufficient to pay any Repayment Instalment or to make any payment of interest when due, the Borrowers' obligation to pay that Repayment Instalment or to make that
payment of interest shall not be affected.
|
| 17.5 |
Release of surplus Subject to Clause 22.1.1 (Financial covenants) being complied with, any amount remaining to the credit of the Earnings Accounts following the making of any
transfer required by Clause 17.3 (Application of Earnings Account) shall (unless a Default is continuing) be released to or to the
order of the Borrowers.
|
| 17.6 |
Restriction on withdrawal During the Facility
Period no sum may be withdrawn from the Earnings Accounts (except in accordance with this Clause 17) without the prior written consent of the Security Agent. The Earnings Accounts shall not be overdrawn.
|
| 17.7 |
Relocation of Earnings Accounts On and at any time
after the occurrence of a Default which is continuing, the Security Agent may without the consent of the Borrowers instruct the Account Holder to relocate either or both of the Earnings Accounts to any other branch of the Account
Holder, without prejudice to the continued application of this Clause 17 and the rights of the Finance Parties under the Finance Documents.
|
| 17.8 |
Access to information The Security Agent (and its
nominees) may from time to time during the Facility Period review the records held by the Account Holder (whether in written or electronic form) in relation to the Earnings Accounts, and the Borrowers irrevocably waive any right of
confidentiality which may exist in relation to those records.
|
| 17.9 |
Statements Without prejudice to the rights of the
Security Agent under Clause 17.8 (Access to information), the Borrowers shall procure that the Account Holder
|
| 17.10 |
Application after acceleration From and after the
giving of notice to the Borrowers by the Agent under Clause 24.2.1 (Acceleration), the Borrowers shall procure that all sums from
time to time standing to the credit of either of the Earnings Accounts are immediately transferred to the Security Agent or any Receiver or Delegate for application in accordance with Clause 28 (Application of Proceeds) and the Borrowers irrevocably authorise the Security Agent to instruct the Account Holder to make those transfers.
|
| 18. |
Additional Security
|
| 18.1 |
VTL Coverage
|
| 18.1.1 |
If at any time the aggregate of the Market Value of the Vessels and the value of any additional security (such value to be the face amount of the deposit
(in the case of cash), determined conclusively by appropriate advisers appointed by the Agent (in the case of other charged assets), and determined by the Agent (in all other cases)) for the time being provided to the Security Agent
under this Clause 18.1 is less than 125% of the aggregate of the amount of the Loan then outstanding and the amount certified by the Swap Provider to be the amount which would be payable by the Borrowers to the Swap Provider under the
Master Agreement if an Early Termination Date were to occur at that time (the "VTL Coverage"), the Borrowers shall, within 30 days
of the Agent's request, at the Borrowers' option:
|
| (a) |
pay to the Security Agent or to its nominee a cash deposit in the amount of the shortfall to be secured in favour of the Security Agent as additional
security for the payment of the Indebtedness; or
|
| (b) |
give to the Security Agent other additional security in amount and form acceptable to the Security Agent for a value determined in accordance with the first
part of this Clause 18.1.1; or
|
| (c) |
prepay the Loan in the amount of the shortfall.
|
| 18.1.2 |
Clauses 6.3 (Reborrowing) and 7.7 (Restrictions) shall apply, mutatis
mutandis, to any prepayment made under this Clause 18.1.
|
| 18.1.3 |
any prepayment under this Clause 18.1 shall be allocated proportionally between the outstanding Vessel Loans and thereafter applied in prepayment of the
remaining Repayment Instalments (including the Balloon) in respect of each Vessel Loan in inverse order of maturity.
|
| 18.2 |
Provision of valuations
|
| 18.2.1 |
The Agent shall be entitled to obtain valuation(s) in evidence of the Market Value of (a) a Vessel for the purpose of Clause 18.1 (VTL Coverage) semi-
|
| 18.2.2 |
Additionally, the Agent shall at the request of the Lenders be entitled to obtain a valuation in evidence of the Market Value of a Vessel for the purpose of
Clause 18.1 (VTL Coverage) or Fleet Vessel for the purpose of Clause 22 (Financial Covenants) at any time and each such valuation obtained shall be at the expense of the Lenders except where the Borrowers are by means of such valuation shown to be in
breach of the relevant Clause.
|
| 18.2.3 |
Two Approved Shipbrokers shall be selected by the Borrowers and appointed by the Agent, and the Market Value of a Vessel shall be the arithmetic average of
the two valuations by the two Approved Shipbrokers. If the two valuations differ by at least 10 per cent, then a third valuation for that Vessel shall be obtained from an Approved Shipbroker selected and appointed by the Agent and
the Market Value of that Vessel shall be the arithmetic average of all three such valuations by the three Approved Shipbrokers. The Market Value of each Fleet Vessel shall be determined by a valuation obtained by one Approved
Shipbroker selected by the Borrowers and appointed by the Agent, provided that the Agent (acting reasonably) shall have the right to appoint another Approved Shipbroker to provide a second valuation of that Fleet Vessel addressed to
the Agent, in which case the Market Value of that Fleet Vessel shall be the arithmetic average of the two valuations.
|
| 18.2.4 |
The Agent may at any time after a Default has occurred and is continuing obtain a valuation in evidence of the Market Value of a Vessel or any other vessel
over which additional security has been created in accordance with Clause 18.1 (VTL Coverage) or, if such Default is a result of a
breach of the provisions of Clause 22 (Financial Covenants), a Fleet Vessel.
|
| 18.2.5 |
All valuations referred to in this Clause 18.2, except where specified in Clause 18.2.2, and all valuations to be obtained pursuant to Clause 4 (Conditions of Utilisation) shall be not older than 30 days prior to the date of testing the Market Value and shall be obtained at the
cost and expense of the Borrowers and the Borrowers shall within three Business Days of demand by the Agent pay to the Agent the amount of all such costs and expenses.
|
| 19. |
Guarantee and Indemnity
|
| 19.1 |
Guarantee and indemnity Each Guarantor irrevocably
and unconditionally jointly and severally:
|
| 19.1.1 |
guarantees to each Finance Party punctual performance by each other Obligor of all that Obligor's obligations under the Finance Documents;
|
| 19.1.2 |
undertakes with each Finance Party that whenever another Obligor does not pay any amount when due under or in connection with any Finance Document, that
Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and
|
| 19.1.3 |
agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and
primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of an Obligor not paying any amount which would, but for such unenforceability, invalidity or illegality,
have been payable by it under any Finance Document on the date when it would have been due. The amount payable by a Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 19 if the amount
claimed had been recoverable on the basis of a guarantee.
|
| 19.2 |
Continuing Guarantee This guarantee is a continuing
guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.
|
| 19.3 |
Reinstatement If any discharge, release or
arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is
avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 19 will continue or be reinstated as if the discharge, release or
arrangement had not occurred.
|
| 19.4 |
Waiver of defences The obligations of each
Guarantor under this Clause 19 will not be affected by an act, omission, matter or thing which, but for this Clause 19.4, would reduce, release or prejudice any of its obligations under this Clause 19 (without limitation and whether
or not known to it or any Finance Party) including:
|
| 19.4.1 |
any time, waiver or consent granted to, or composition with, any Obligor or other person;
|
| 19.4.2 |
the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any Obligor or any other member
of the Group;
|
| 19.4.3 |
the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security
over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;
|
| 19.4.4 |
any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person;
|
| 19.4.5 |
any amendment, novation, supplement, extension restatement (however fundamental and whether or not more onerous) or replacement of a Finance
|
| 19.4.6 |
any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; or
|
| 19.4.7 |
any insolvency or similar proceedings.
|
| 19.5 |
Guarantor intent Without prejudice to the
generality of Clause 19.4 (Waiver of defences), each Guarantor expressly confirms that it intends that this guarantee shall extend
from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in
connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other
indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses
associated with any of the foregoing.
|
| 19.6 |
Immediate recourse Each Guarantor waives any right
it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause
19. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.
|
| 19.7 |
Appropriations Until all amounts which may be or
become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:
|
| 19.7.1 |
refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in
respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and
|
| 19.7.2 |
hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor's liability under this Clause 19.
|
| 19.8 |
Deferral of Guarantors' rights Until all amounts
which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by
reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 19:
|
| 19.8.1 |
to be indemnified by an Obligor;
|
| 19.8.2 |
to claim any contribution from any other guarantor of any Obligor's obligations under the Finance Documents;
|
| 19.8.3 |
to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or
of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;
|
| 19.8.4 |
to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has
given a guarantee, undertaking or indemnity under Clause 19.1 (Guarantee and indemnity);
|
| 19.8.5 |
to exercise any right of set-off against any Obligor; and/or
|
| 19.8.6 |
to claim or prove as a creditor of any Obligor in competition with any Finance Party.
|
| 19.9 |
Additional security This guarantee is in addition
to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party.
|
| Section 8 |
Representations, Undertakings and Events of Default
|
| 20. |
Representations
|
| 20.1 |
Representations Each Borrower and each Guarantor
makes the representations and warranties set out in this Clause 20 to each Finance Party.
|
| 20.1.1 |
Status Each of the Obligors:
|
| (a) |
is a limited liability corporation, duly incorporated and validly existing under the law of its Original Jurisdiction; and
|
| (b) |
has the power to own its assets and carry on its business as it is being conducted.
|
| 20.1.2 |
Binding obligations Subject to the Legal
Reservations:
|
| (a) |
the obligations expressed to be assumed by each of the Obligors in each of the Relevant Documents to which it is a party are legal, valid, binding and
enforceable obligations; and
|
| (b) |
(without limiting the generality of Clause 20.1.2(a)) each Security Document to which it is a party creates the security interests which that Security
Document purports to create and those security interests are valid and effective.
|
| 20.1.3 |
Non-conflict with other obligations The entry into
and performance by each of the Obligors of, and the transactions contemplated by, the Relevant Documents do not and will not conflict with:
|
| (a) |
any law or regulation applicable to such Obligor;
|
| (b) |
the constitutional documents of such Obligor; or
|
| (c) |
any agreement or instrument binding upon such Obligor or any of such Obligor's assets or constitute a default or termination event (however described) under
any such agreement or instrument.
|
| 20.1.4 |
Power and authority
|
| (a) |
Each of the Obligors has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and
delivery of, the Relevant Documents to which it is or will be a party and the transactions contemplated by those Relevant Documents.
|
| (b) |
No limit on the powers of any Obligor will be exceeded as a result of the borrowing, grant of security or giving of guarantees or indemnities contemplated
by the Relevant Documents to which it is a party.
|
| 20.1.5 |
Validity and admissibility in evidence All
Authorisations required or desirable:
|
| (a) |
to enable each of the Obligors lawfully to enter into, exercise its rights and comply with its obligations in the Relevant Documents to which it is a party
or to enable each Finance Party to enforce and exercise all its rights under the Relevant Documents; and
|
| (b) |
to make the Relevant Documents to which any Obligor is a party admissible in evidence in its Relevant Jurisdictions,
|
| 20.1.6 |
Governing law and enforcement
|
| (a) |
The choice of governing law of any Finance Document will be recognised and enforced in the Relevant Jurisdictions of each relevant Obligor.
|
| (b) |
Any judgment obtained in relation to any Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced
in the Relevant Jurisdictions of each relevant Obligor.
|
| 20.1.7 |
Insolvency No corporate action, legal proceeding or
other procedure or step described in Clause 24.1.7 (Insolvency proceedings) or creditors' process described in Clause 24.1.8 (Creditors' process) has been taken or, to the knowledge of any Borrower or any Guarantor, threatened in relation to an Obligor or any
other member of the Group; and none of the circumstances described in Clause 24.1.6 (Insolvency) applies to an Obligor or any
other member of the Group.
|
| 20.1.8 |
No filing or stamp taxes Under the laws of the
Relevant Jurisdictions of each relevant Obligor it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in any of those jurisdictions or that any stamp, registration, notarial or
similar Taxes or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except: registration of each Mortgage at the Ships Registry where title to the relevant Vessel is
registered in the ownership of the relevant Borrower and payment of associated fees, which registrations, filings, taxes and fees will be made and paid promptly after the date of the relevant Finance Document.
|
| 20.1.9 |
Deduction of Tax None of the Obligors is required
under the law of its jurisdiction of incorporation to make any deduction for or on account of Tax from any payment it may make under any Finance Document to a Lender which is:
|
| (a) |
a Qualifying Lender falling within (a) of the definition of Qualifying Lender; or, except where a Direction has been given under section 931 of the ITA in
relation to the payment concerned, a Qualifying Lender falling within (b) of the definition of Qualifying Lender; or
|
| (b) |
a Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue & Customs under Regulation 2 of the Double
Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).
|
| 20.1.10 |
No default
|
| (a) |
No Event of Default and, on the date of this Agreement and each Utilisation Date, no Default is continuing or is reasonably likely to result from the
advance of any Vessel Loan or the entry into, the performance of, or any transaction contemplated by, any of the Relevant Documents.
|
| (b) |
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 of the Obligors or to which its assets are
subject which has or is reasonably likely to have a Material Adverse Effect.
|
| 20.1.11 |
No misleading information Save as disclosed in
writing to the Agent and the Arranger prior to the date of this Agreement:
|
| (a) |
all material information provided to a Finance Party by or on behalf of any of the Obligors or any other member of the Group on or before the date of this
Agreement and not superseded before that date is accurate and not misleading in any material respect and all projections provided to any Finance Party on or before the date of this Agreement have been prepared in good faith on the
basis of assumptions which were reasonable at the time at which they were prepared and supplied; and
|
| (b) |
all other written information provided by any of the Obligors or any other member of the Group (including its advisers) to a Finance Party was true,
complete and accurate in all material respects as at the date it was provided and is not misleading in any respect.
|
| 20.1.12 |
Financial statements
|
| (a) |
The Original Financial Statements were prepared in accordance with GAAP consistently applied.
|
| (b) |
The unaudited Original Financial Statements fairly represent each Obligor's and the Group's financial condition and results of operations for the relevant
half year.
|
| (c) |
The audited Original Financial Statements fairly represent each Obligor's and the Group's financial condition and results of operations during the relevant
financial year.
|
| (d) |
There has been no material adverse change in any Obligor's assets, business or financial condition (or the assets, business or consolidated financial
condition of the Group, in the case of the Original Guarantor) since the date of the Original Financial Statements.
|
| (e) |
Each Obligor's most recent financial statements delivered pursuant to Clause 21.1 (Financial statements):
|
| (i) |
have been prepared in accordance with GAAP as applied to the Original Financial Statements; and
|
| (ii) |
fairly represent its consolidated financial condition as at the end of, and its consolidated results of operations for, the period to which they relate.
|
| (f) |
Since the date of the most recent financial statements delivered pursuant to Clause 21.1 (Financial statements) there has been no material adverse change in the assets, business or
financial condition of any of the Obligors or any other member of the Group.
|
| 20.1.13 |
No proceedings
|
| (a) |
No litigation, arbitration or administrative proceedings or investigation of or before any court, arbitral body or agency which, if adversely determined,
are reasonably likely to have a Material Adverse Effect have (to the best of its knowledge and belief (having made due and careful enquiry)) been started or threatened against any of the Obligors or any other member of the Group.
|
| (b) |
No judgment or order of a court, arbitral body or agency which is reasonably likely to have a Material Adverse Effect has (to the best of its knowledge and
belief (having made due and careful enquiry)) been made against any of the Obligors or any other member of the Group.
|
| 20.1.14 |
No breach of laws None of the Obligors or any other
member of the Group has breached any law or regulation which breach has or is reasonably likely to have a Material Adverse Effect.
|
| 20.1.15 |
Environmental laws
|
| (a) |
Each of the Obligors and each other member of the Group is in compliance with Clause 23.3 (Environmental compliance) and to the best of its knowledge and belief (having made due and careful enquiry) no circumstances have occurred which would prevent such compliance in a manner or
to an extent which has or is reasonably likely to have a Material Adverse Effect.
|
| (b) |
No Environmental Claim has been commenced or (to the best of its knowledge and belief (having made due and careful enquiry)) is threatened against any of
the Obligors or any other member of the Group where that claim has or is reasonably likely, if determined
|
| 20.1.16 |
Taxation
|
| (a) |
None of the Obligors nor any other member of the Group is materially overdue in the filing of any Tax returns or is overdue in the payment of any amount in
respect of Tax.
|
| (b) |
No claims or investigations are being, or are reasonably likely to be, made or conducted against any of the Obligors or any other member of the Group with
respect to Taxes.
|
| (c) |
Each of the Obligors and each other member of the Group is resident for Tax purposes only in its Original Jurisdiction.
|
| 20.1.17 |
Anti-corruption law Each of the Obligors and each
other member of the Group and each Affiliate of any of them has conducted its businesses in compliance with applicable anti-corruption laws and has instituted and maintained policies and procedures designed to promote and achieve
compliance with such laws.
|
| 20.1.18 |
No Encumbrance or Financial Indebtedness
|
| (a) |
No Encumbrance or Quasi-Security exists over all or any of the present or future assets of any of the Obligors or any other member of the Group other than
as permitted by the Finance Documents.
|
| (b) |
None of the Obligors has any Financial Indebtedness outstanding other than as permitted by this Agreement.
|
| 20.1.19 |
Pari passu ranking The payment obligations of each
of the Obligors under the Finance Documents to which it is a party rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to
companies generally.
|
| 20.1.20 |
No adverse consequences
|
| (a) |
It is not necessary under the laws of the Relevant Jurisdictions of any of the Obligors or any other member of the Group:
|
| (i) |
in order to enable any Finance Party to enforce its rights under any Finance Document; or
|
| (ii) |
by reason of the execution of any Finance Document or the performance by it of its obligations under any Finance Document,
|
| (b) |
No Finance Party is or will be deemed to be resident, domiciled or carrying on business in any of the Relevant Jurisdictions of any of the Obligors or any
other member of the Group by reason only of the execution, performance and/or enforcement of any Finance Document.
|
| 20.1.21 |
Disclosure of material facts No Borrower is aware
of any material facts or circumstances which have not been disclosed to the Agent and which might, if disclosed, have changed the decision of a person willing to make loan facilities of the nature contemplated by this Agreement
available to the Borrowers.
|
| 20.1.22 |
Completeness of Relevant Documents The copies of
any Relevant Documents provided or to be provided by the Borrowers to the Agent in accordance with Clause 4 (Conditions of Utilisation)
are, or will be, true and accurate copies of the originals and represent, or will represent, the full agreement between the parties to those Relevant Documents in relation to the subject matter of those Relevant Documents and there
are no commissions, rebates, premiums or other payments due or to become due in connection with the subject matter of those Relevant Documents other than in the ordinary course of business or as disclosed to, and approved in writing
by, the Agent.
|
| 20.1.23 |
No immunity No Obligor or any of its assets is
immune to any legal action or proceeding.
|
| 20.1.24 |
Money laundering Any borrowing by a Borrower under
this Agreement, and the performance of its obligations under this Agreement and under the other Finance Documents, will be for its own account and will not involve any breach by it of any law or regulatory measure relating to "money laundering" as defined in Article 1 of the Directive ((EU) 2015/849) of the European Parliament and of the Council of the
European Communities.
|
| 20.1.25 |
Sanctions
|
| (a) |
No Relevant Person is:
|
| (b) |
a Restricted Party;
|
| (c) |
in breach of Sanctions; or
|
| (d) |
subject to or involved in any complaint, claim, proceeding, formal notice, investigation or other action by any regulatory or enforcement authority or third
party concerning any Sanctions.
|
| 20.2 |
Repetition Each Repeating Representation is deemed
to be made by each Borrower and each Guarantor by reference to the facts and circumstances then existing on the date of each Utilisation Request, on each Utilisation Date, on the first day of each Interest Period and, in the case of
those contained in Clauses 20.1.12(d) and 20.1.12(f) (Financial statements) and for so long as any amount is outstanding under the
Finance Documents or any Commitment is in force, on each day.
|
| 21. |
Information Undertakings
|
| 21.1 |
Financial statements Each Borrower and the
Original Guarantor shall supply to the Agent in sufficient copies for all of the Lenders:
|
| 21.1.1 |
as soon as the same become available, but in any event within 180 days after the end of each of its financial years, the audited (consolidated) financial
statements of the Original Guarantor for that financial year; and
|
| 21.1.2 |
as soon as the same become available, but in any event within 90 days after the end of each half year during the Original Guarantor's financial years, the
unaudited semi-annual financial statements for that half year.
|
| 21.2 |
Compliance Certificate
|
| 21.2.1 |
The Original Guarantor shall supply to the Agent, with each set of its annual financial statements delivered pursuant to Clause 21.1.1 (Financial statements) and each set of its semi-annual financial statements delivered pursuant to Clause 21.1.2 (Financial statements) and any financial statements required to be delivered under Clause 4 (Conditions of Utilisation), a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 22 (Financial Covenants) as at the date as at which those financial statements were drawn up.
|
| 21.2.2 |
Each Compliance Certificate shall be signed by the chief financial officer of the Original Guarantor.
|
| 21.3 |
Requirements as to financial statements
|
| 21.3.1 |
shall be certified by a director of the relevant company as fairly representing its financial condition and operations as at the date as at which those
financial statements were drawn up;
|
| 21.3.2 |
in the case of consolidated financial statements of the Group, shall be accompanied by a statement by the directors of the Original Guarantor comparing
actual performance for the period to which the financial statements relate to the actual performance for the corresponding period in the preceding financial year of the Group; and
|
| 21.3.3 |
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, it notifies the Agent that there has been a change in GAAP, the accounting practices or reference periods and its auditors deliver to the Agent:
|
| (a) |
a description of any change necessary for those financial statements to reflect the GAAP, accounting practices and reference
|
| (b) |
sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Agent to determine whether Clause 22 (Financial Covenants) has been complied with and make an accurate comparison between the financial position indicated in those
financial statements and the Original Financial Statements.
|
| 21.4 |
Information: miscellaneous Each Borrower shall
supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):
|
| 21.4.1 |
at the same time as they are dispatched, copies of all documents dispatched by that Borrower to its shareholders generally (or any class of them) or
dispatched by that Borrower or any other Obligor to its creditors generally (or any class of them);
|
| 21.4.2 |
promptly upon becoming aware of them, the details of any default, litigation, arbitration or administrative proceedings which are current, threatened or
pending against any Obligor or any other member of the Group and which, if adversely determined, are reasonably likely to have a Material Adverse Effect;
|
| 21.4.3 |
promptly upon becoming aware of them, the details of any judgment or order of a court, arbitral body or agency which is made against any Obligor or any
other member of the Group and which is reasonably likely to have a Material Adverse Effect;
|
| 21.4.4 |
promptly, such information and documents as the Security Agent may reasonably require about the Charged Property and compliance of the Obligors with the
terms of any Security Documents (including without limitation cash flow analyses and details of the operating costs of any Vessel); and
|
| 21.4.5 |
promptly on request, such further information regarding the financial condition, assets and operations of any Obligor or any other member of the Group
(including any requested amplification or explanation of any item in the financial statements, budgets or other material provided by any Obligor under this Agreement, any changes to management of the Group and an up to date copy of
its shareholders' register (or equivalent in its Original Jurisdiction)) as any Finance Party through the Agent may reasonably request.
|
| 21.5 |
Notification of default
|
| 21.5.1 |
Each Borrower and each Guarantor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its
occurrence.
|
| 21.5.2 |
Promptly upon a request by the Agent, each Borrower shall supply to the Agent a certificate signed by two of its directors or senior officers on its behalf
certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).
|
| 21.6 |
Sanctions
|
| 21.6.1 |
Each of the Borrowers and the Original Guarantor shall notify the Agent promptly upon becoming aware of the relevant event and giving full details, if it or
any other Relevant Person:
|
| (a) |
becomes, or is reasonably likely to become, a Restricted Party;
|
| (b) |
has any direct or indirect dealings with any Restricted Party; or
|
| (c) |
is subject to, involved in or threatened with any complaint, claim, proceeding, formal notice, investigation or other action by any regulatory or
enforcement authority or third party concerning any Sanctions and shall notify the Agent of the steps, if any, being taken to address it.
|
| 21.7 |
"Know your customer" checks
|
| 21.7.1 |
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 of a Holding Company of an Obligor) or the composition of the shareholders of an Obligor (or of a Holding Company
of an Obligor) after the date of this Agreement; or
|
| (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,
|
| 21.7.2 |
Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested
by the Agent (for itself) in order for the Agent to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions
contemplated in the Finance Documents.
|
| 21.7.3 |
The Borrowers shall, by not less than ten Business Days' prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) of
the intention to request that any other company becomes an Additional Guarantor pursuant to Clause 26 (Changes to the Obligors).
|
| 21.7.4 |
Following the giving of any notice pursuant to Clause 21.7.3, if the accession of such Additional Guarantor obliges the Agent or any Lender to comply with
"know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrowers 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 on behalf of any prospective new Lender) in order for the Agent or such
Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the accession of such company to
this Agreement as an Additional Guarantor.
|
| 22. |
Financial Covenants
|
| 22.1.1 |
Each Borrower shall, from the Utilisation Date and throughout the Facility Period, maintain in the relevant Earnings Account a credit balance of not less
than two hundred thousand Dollars ($200,000).
|
| 22.1.2 |
The Original Guarantor shall maintain throughout the Facility Period on a consolidated basis:
|
| (a) |
Cash of not less than the higher of (i) $500,000 multiplied by the number of the Fleet Vessels and (ii) $10,000,000; and
|
| (b) |
Market Value Adjusted Net Worth in an amount not less than $150,000,000; and
|
| (c) |
Market Value Adjusted Net Worth in excess of 25% of the Total Assets.
|
| (a) |
any Financial Indebtedness of the debtor;
|
| (b) |
liability of any credit to the debtor from a supplier of goods or services or under any instalment purchase or payment plan or other similar arrangement;
|
| (c) |
contingent liabilities of the debtor (including without limitation any taxes or other payments under dispute) which have been or, under GAAP, should be
recorded in the notes to the Accounting Information;
|
| (d) |
any deferred tax of the debtor; and
|
| (e) |
liability under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability of another person who is not a member of
the Group which would fall within (a) to (d) above if the references to the debtor referred to the other person.
|
| 23. |
General Undertakings
|
| 23.1 |
Authorisations Each Borrower and each Guarantor
shall promptly:
|
| 23.1.1 |
obtain, comply with and do all that is necessary to maintain in full force and effect; and
|
| 23.1.2 |
supply certified copies to the Agent of,
|
| (a) |
enable any Obligor to perform its obligations under the Finance Documents to which it is a party;
|
| (b) |
ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document; and
|
| (c) |
enable any Obligor to carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.
|
| 23.2 |
Compliance with laws
|
| 23.2.1 |
Each Borrower and each Guarantor shall comply (and shall procure that each other Obligor, each other member of the Group and each Affiliate of any of them
will comply), in all respects with all laws to which it may be subject, if (except as regards Sanctions, to which Clause 23.2.2 applies, and anti-corruption laws, to which Clause 23.5 applies) failure so to comply has or is reasonably
likely to have a Material Adverse Effect.
|
| 23.2.2 |
Each Borrower and each Guarantor shall comply (and shall procure that each other Obligor, each other member of the Group and each Affiliate of any of them
will comply) in all respects with all Sanctions.
|
| 23.3 |
Environmental compliance
|
| 23.3.1 |
comply with all Environmental Laws;
|
| 23.3.2 |
obtain, maintain and ensure compliance with all requisite Environmental Approvals; and
|
| 23.3.3 |
implement procedures to monitor compliance with and to prevent liability under any Environmental Law,
|
| 23.4 |
Environmental Claims
|
| 23.4.1 |
any Environmental Claim against any of the Obligors or any other member of the Group which is current, pending or threatened; and
|
| 23.4.2 |
any facts or circumstances which are reasonably likely to result in any Environmental Claim being commenced or threatened against any of the Obligors or any
other member of the Group,
|
| 23.5 |
Anti-corruption law
|
| 23.5.1 |
Each Borrower and each Guarantor shall not (and shall procure that no other Obligor or other member of the Group will) directly or indirectly use the
proceeds of the Loan for any purpose which would breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other similar legislation in other jurisdictions.
|
| 23.5.2 |
Each Borrower and each Guarantor shall (and shall procure that each other Obligor and each other member of the Group will):
|
| (a) |
conduct its businesses in compliance with applicable anti-corruption laws; and
|
| (b) |
maintain policies and procedures designed to promote and achieve compliance with such laws.
|
| 23.6 |
Taxation
|
| 23.6.1 |
Each Borrower and each Guarantor shall (and shall procure that each other Obligor and each other member of the Group will) pay and discharge all Taxes
imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:
|
| (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 21.1 (Financial statements); and
|
| (c) |
such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.
|
| 23.6.2 |
Neither any Borrower nor any Guarantor may (and no other Obligor or other member of the Group may) change its residence for Tax purposes.
|
| 23.7 |
Evidence of good standing Each Borrower will from
time to time, if applicable and if requested by the Agent, provide the Agent with evidence in form and substance satisfactory to the Agent that each Obligor and each corporate shareholder of an Obligor remains in good standing.
|
| 23.8 |
Pari passu ranking Each Borrower and each Guarantor
shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.
|
| 23.9 |
Negative pledge
|
| 23.9.1 |
No Borrower shall create nor permit to subsist any Encumbrance over any of its assets.
|
| 23.9.2 |
No Borrower shall:
|
| (a) |
sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other member of
the Group;
|
| (b) |
sell, transfer or otherwise dispose of any of its receivables on recourse terms;
|
| (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,
|
| 23.9.3 |
Clauses 23.9.1 and 23.9.2 do not apply to (a) any Encumbrance or (as the case may be) Quasi-Security over a Vessel, which is a Permitted Encumbrance or (b)
any Encumbrance or (as the case may be) Quasi-Security over any other asset, which is created in the ordinary course of trading and not as a result of any default or omission by an Obligor or any other member of the Group.
|
| 23.10 |
Disposals
|
| 23.10.1 |
Except as permitted under Clause 23.10.2, neither Borrower shall enter into a single transaction or a series of transactions (whether related or not) and
whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.
|
| 23.10.2 |
Clause 23.10.1 does not apply to any sale, lease, transfer or other disposal which is a Permitted Disposal.
|
| 23.11 |
Arm's length basis
|
| 23.11.1 |
Except as permitted under Clause 23.11.2, neither Borrower shall enter into any transaction with any person except on arm's length terms and for full market
value.
|
| 23.11.2 |
The following transactions shall not be a breach of this Clause 23.11: fees, costs and expenses payable under the Relevant Documents in the amounts set out
in the Relevant Documents delivered to the Agent under Clause 4.1 (Initial conditions precedent) or agreed by the Agent.
|
| 23.12 |
Merger Neither any Borrower nor any Guarantor shall
enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction.
|
| 23.13 |
Change of business Neither any Borrower nor any
Guarantor shall (and the Borrowers shall procure that no other Obligor will) make any substantial change to the general nature of its business from that carried on at the date of this Agreement without the prior written consent of the
Agent acting on the instructions of the Majority Lenders.
|
| 23.14 |
No other business No Borrower shall engage in any
business other than the ownership, operation, chartering and management of the relevant Vessel.
|
| 23.15 |
No acquisitions No Borrower shall acquire a company
or any shares or securities or a business or undertaking (or, in each case, any interest in any of them) or incorporate a company.
|
| 23.16 |
No Joint Ventures Neither Borrower shall:
|
| 23.16.1 |
enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or
|
| 23.16.2 |
transfer any assets or lend to or guarantee or give an indemnity for or give security for the obligations of a Joint Venture or maintain the solvency of or
provide working capital to any Joint Venture (or agree to do any of the foregoing).
|
| 23.17 |
No borrowings No Borrower shall incur or allow to
remain outstanding any Financial Indebtedness (except for the Loan) other than any Financial Indebtedness arising in the ordinary course of trading and any Financial Indebtedness from members of the Group which has been subordinated
to the Loan and on terms acceptable to the Agent, such terms to include, without limitation, prohibition from payment of principal and interest prior to the expiry of the Facility Period.
|
| 23.18 |
No substantial liabilities Except in the ordinary
course of business, neither Borrower shall incur any liability to any third party which is in the Agent's opinion of a substantial nature.
|
| 23.19 |
No loans or credit No Borrower shall be a creditor
in respect of any Financial Indebtedness unless it is a loan made in the ordinary course of business in connection with the chartering, operation or repair of the relevant Vessel.
|
| 23.20 |
No guarantees or indemnities No Borrower shall
incur or allow to remain outstanding any guarantee in respect of any obligation of any person unless it is a guarantee made in the ordinary course of business in connection with the chartering, operation or repair of the relevant
Vessel.
|
| 23.21 |
No dividends Neither any Borrower nor any Guarantor shall:
|
| 23.21.1 |
declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in
cash or in kind) on or in respect of its share capital (or any class of its share capital);
|
| 23.21.2 |
repay or distribute any dividend or share premium reserve;
|
| 23.21.3 |
pay or allow any member of the Group to pay any management, advisory or other fee to or to the order of any of the shareholders of the Guarantor;
|
| 23.21.4 |
redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so; or
|
| 23.22 |
Inspection of records Each Borrower and each
Guarantor will permit the inspection of its financial records and accounts from time to time by the Agent or its nominee.
|
| 23.23 |
No change in Relevant Documents Neither any
Borrower nor any Guarantor shall (and the Borrowers shall procure that no other Obligor or other member of the Group will) amend, vary, novate, supplement, supersede, waive or terminate any term of, any of the Relevant Documents
(including, without limitation any Charter) which are not Finance Documents, or any other document delivered to the Agent pursuant to Clause 4.1 (Initial conditions precedent) or Clause 4.2 (Further conditions precedent) or Clause 4.3 (Conditions subsequent).
|
| 23.24 |
Further assurance
|
| 23.24.1 |
Each Borrower and each Guarantor shall (and shall procure that each other Obligor and each other member of the Group will) promptly do all such acts or
execute all such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Security Agent may reasonably specify (and in such form as the Security Agent may
|
| (a) |
to perfect any Encumbrance created or intended to be created under or evidenced by the Security Documents (which may include the execution of a mortgage,
charge, assignment or other Encumbrance over all or any of the assets which are, or are intended to be, the subject of the Security Documents) 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 confer on the Finance Parties an Encumbrance over any property and assets of that Borrower (or that other Obligor or that
other member of the Group as the case may be) located in any jurisdiction equivalent or similar to the Encumbrance 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.
|
| 23.24.2 |
Each Borrower and each Guarantor shall (and shall procure that each other Obligor and each other member of the Group will) take all such action as is
available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Encumbrance conferred or intended to be conferred on the Security Agent
or the Finance Parties by or pursuant to the Finance Documents.
|
| 23.25 |
Sanctions
|
| 23.25.1 |
No Obligor shall (and the Borrowers and the Guarantor shall ensure that no other Relevant Person will) take any action, make any omission or use (directly
or indirectly) any proceeds of the Loan, in a manner that:
|
| (a) |
is a breach of Sanctions; and/or
|
| (b) |
causes (or will cause) a breach of Sanctions by any Relevant Person or Finance Party.
|
| (c) |
causes any Finance Party to be involved in any complaint, claim, proceeding, formal notice, investigation or other action by any regulatory or enforcement
authority or third party concerning any Sanctions.
|
| 23.25.2 |
No Obligor shall (and the Borrowers and the Guarantor shall ensure that no other Relevant Person will) take any action or make any omission that results, or
is likely to result, in it or any Finance Party becoming a Restricted Party or otherwise a target of sanctions ("target of sanctions" signifying an entity or person ("Target") that is a target of laws, regulations or orders concerning any trade, economic or financial sanctions or embargoes by
|
| 23.25.3 |
Each Obligor shall (and the Borrowers and the Guarantor shall ensure that each member of the Group will) maintain appropriate policies and procedures to:
|
| (a) |
identify any risks to its business as a result of Sanctions; and
|
| (b) |
promote and achieve compliance with its obligations under paragraphs (a) and (b) above.
|
| 23.26 |
No dealings with Master Agreement
|
| 23.26.1 |
No Borrower shall assign, novate or encumber or in any other way transfer any of its rights or obligations under the Master Agreement, nor (subject to
Clause 23.26.2) enter into any interest rate exchange or hedging agreement with anyone other than the Swap Provider.
|
| 23.26.2 |
The Borrowers shall give the Swap Provider at all times throughout the Facility Period, the right of first refusal to enter into one or more hedging of
interest rate risk of the Loan or other derivative products on competitive terms.
|
| 23.27 |
Change of control
|
| 23.27.1 |
The Borrowers and the Guarantor shall procure that throughout the Facility Period:-
|
| (a) |
the Borrowers shall remain wholly owned and controlled Subsidiaries of the Guarantor;
|
| (b) |
there is no change in the legal or beneficial ownership of a Borrower from that advised to the Agent on or prior to the date of this Agreement without the
prior written consent of the Agent;
|
| (c) |
the Family, with the exception of any financial institution acting as passive investor, remains the major legal owner or ultimate beneficial owner of the
Guarantor;
|
| (d) |
the Guarantor remains listed in the New York Stock Exchange;
|
| (e) |
each of the Relevant Executives holds an executive position within the management structure of the Guarantor.
|
| 23.28 |
Inventory of Hazardous Materials Each Borrower
shall procure that the Vessel owned by it has, from 1 January 2021, obtained an Inventory of Hazardous Material, in respect of the Vessel owned by it which shall be maintained throughout the Facility Period.
|
| 23.29 |
Sustainable Vessel dismantling Each of the
Guarantor and the Borrowers confirms that it will ensure that any ship controlled by it or sold to an intermediary with the intention of being scrapped, is recycled at a recycling yard which conducts its recycling business in a
socially and environmentally responsible manner, in accordance with the provisions of The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 and/or EU Ship regulation.
|
| 23.30 |
Reduction or increase of capital No Borrower shall
purchase, cancel or redeem any part of its share capital or reduce or increase its authorised or issued or subscribed capital or resolve to do so.
|
| 23.31 |
Change of Managers The Borrowers may, at their sole
discretion, at any time during the Facility Period, change the Managers of a Vessel from Diana Shipping to Diana Wilhelmsen, provided that the Borrowers shall notify the Agent two Business Days prior to such change and undertake to
provide the Agent with:
|
| 23.31.1 |
on or prior to such change:
|
| (a) |
the documents listed in paragraphs 1(a)-(h) of Part I of Schedule 2;
|
| (b) |
a legal opinion of the legal advisers to the Agent in each relevant jurisdiction, addressed to the Agent, or confirmation satisfactory that such opinion
will be given;
|
| (c) |
the Managers’ Undertakings of the new Managers; and
|
| (d) |
the ISM Company's current DOC,
|
| 23.31.2 |
within 1 Business Day after the change of the Approved Manager is concluded, the relevant Vessel's current ISSC and SMC; and
|
| 23.31.3 |
within 10 days the change of the Approved Manager is concluded, evidence that the prescribed particulars of the new Manager's Undertaking received by the
Agent under Clause 23.31.1 (c), have been delivered to the Registry of Companies/Corporations in Cyprus within the statutory time limit.
|
| 24. |
Events of Default
|
| 24.1 |
Events of Default Each of the events or
circumstances set out in this Clause 24.1 is an Event of Default.
|
| 24.1.1 |
Non-payment An Obligor does not pay on the due date
any amount payable by it under a Finance Document at the place at and in the currency in which it is expressed to be payable unless:
|
| (a) |
its failure to pay is caused by:
|
| (i) |
administrative or technical error; or
|
| (ii) |
a Disruption Event; and
|
| (b) |
payment is made within two Business Days of its due date.
|
| 24.1.2 |
Other specific obligations
|
| (a) |
Any requirement of Clause 22 (Financial Covenants)
is not satisfied.
|
| (b) |
An Obligor does not comply with any obligation in a Finance Document relating to the Insurances or with Clause 7.5 (Mandatory prepayment on sale or Total Loss) or with Clause 18.1 (Additional security) or with Clause 23.25 (Sanctions) or with Clause 23.27 (Change of control).
|
| 24.1.3 |
Other obligations
|
| (a) |
An Obligor does not comply with any provision of a Finance Document (other than those referred to in Clause 24.1.1 (Non-payment) and Clause 24.1.2 (Other
specific obligations).
|
| (b) |
No Event of Default under this Clause 24.1.3 will occur if the failure to comply is capable of remedy and is remedied within ten Business Days of the
earlier of (i) the Agent giving notice to the Borrowers and (ii) the Borrowers becoming aware of the failure to comply.
|
| 24.1.4 |
Misrepresentation Any representation or statement
made or deemed to be made by an Obligor in any Finance Document or any other document delivered by or on behalf of an Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading when made
or deemed to be made.
|
| 24.1.5 |
Cross default
|
| (a) |
Any Financial Indebtedness of an Obligor or of any other member of the Group is not paid when due nor within any originally applicable grace period.
|
| (b) |
Any Financial Indebtedness of an Obligor or of any other member of the Group is declared to be, or otherwise becomes, due and payable prior to its specified
maturity as a result of an event of default (however described).
|
| (c) |
Any commitment for any Financial Indebtedness of an Obligor or of any other member of the Group is cancelled or suspended by a creditor of an Obligor or of
any other member of the Group as a result of an event of default (however described).
|
| (d) |
Any creditor of an Obligor or of any other member of the Group becomes entitled to declare any Financial Indebtedness of an Obligor or of any other member
of the Group due and payable prior to its specified maturity as a result of an event of default (however described).
|
| 24.1.6 |
Insolvency
|
| (a) |
An Obligor or any other member of the Group:
|
| (i) |
is unable or admits inability to pay its debts as they fall due;
|
| (ii) |
is deemed to, or is declared to, be unable to pay its debts under applicable law;
|
| (iii) |
suspends or threatens to suspend making payments on any of its debts; or
|
| (iv) |
by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its
indebtedness.
|
| (b) |
The value of the assets of an Obligor or any other member of the Group is less than its liabilities (taking into account contingent and prospective
liabilities).
|
| (c) |
A moratorium is declared in respect of any indebtedness of an Obligor or any other member of the Group. If a moratorium occurs, the ending of the
moratorium will not remedy any Event of Default caused by that moratorium.
|
| 24.1.7 |
Insolvency proceedings 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, bankruptcy or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of an Obligor or any other member of the Group;
|
| (b) |
a composition, compromise, assignment or arrangement with any creditor of an Obligor or any other member of the Group;
|
| (c) |
the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager, trustee or other similar officer in respect of an
Obligor or any other member of the Group or any of its assets; or
|
| (d) |
enforcement of any Encumbrance over any assets of an Obligor or any other member of the Group,
|
| 24.1.8 |
Creditors' process Any expropriation, attachment,
sequestration, distress or execution (or any analogous process in any jurisdiction) affects any asset or assets of an Obligor or any other member of the Group and is not discharged within 7 days.
|
| 24.1.9 |
Unlawfulness and invalidity
|
| (a) |
It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents or any Encumbrance created or expressed to be created
or evidenced by the Security Documents ceases to be effective.
|
| (b) |
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.
|
| (c) |
Any Finance Document ceases to be in full force and effect or any Encumbrance created or expressed to be created or evidenced by the Security Documents
ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.
|
| 24.1.10 |
Cessation of business An Obligor ceases, or
threatens to cease, to carry on all or a substantial part of its business.
|
| 24.1.11 |
Change in ownership or control There is any
change in the beneficial ownership or control of a Borrower or (b) the Family ceases to be the major legal owner or ultimate beneficial owner of the Original Guarantor, with the exception of any financial institution acting as passive
investor.
|
| 24.1.12 |
Expropriation The authority or ability of an
Obligor or any other member of the Group 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 an Obligor or any member of the Group or any of its assets.
|
| 24.1.13 |
Repudiation and rescission of agreements
|
| (a) |
An Obligor rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or evidences an intention to rescind or repudiate a
Finance Document.
|
| (b) |
Subject to Clause 24.1.13(c), any party to any of the Relevant Documents that is not a Finance Document rescinds or purports to rescind or repudiates or
purports to repudiate that Relevant Document in whole or in part where to do so has or is, in the reasonable opinion of the Majority Lenders, likely to have a material adverse effect on the interests of the Lenders under the Finance
Documents.
|
| (c) |
Any of the Management Agreements or a Charter is terminated, cancelled or otherwise ceases to remain in full force and effect at any time prior to its
contractual expiry date and is not immediately replaced by a similar agreement in form and substance satisfactory to the Majority Lenders.
|
| 24.1.14 |
Conditions subsequent Any of the conditions
referred to in Clause 4.3 (Conditions subsequent) is not satisfied within the time reasonably required by the Agent.
|
| 24.1.15 |
Revocation or modification of Authorisation Any
Authorisation of any governmental, judicial or other public body or authority which is now, or which at any time during the Facility Period becomes, necessary to enable any of the Obligors or any other person (except a Finance Party)
to comply with any of their obligations under any Relevant Document is not obtained, is revoked, suspended, withdrawn or withheld, or is modified in a manner which the Agent considers is, or may be, prejudicial to the interests of any
Finance Party, or ceases to remain in full force and effect.
|
| 24.1.16 |
Reduction of capital A Borrower reduces its
authorised or issued or subscribed capital.
|
| 24.1.17 |
Loss of Vessel A Vessel suffers a Total Loss or is
otherwise destroyed or abandoned, or a similar event occurs in relation to any other vessel which may from time to time be mortgaged to the Security Agent as security for the payment of all or any part of the Indebtedness, except that
a Total Loss (which term shall for the purposes of the remainder of this Clause 0 include an event similar to a Total Loss in relation to any other vessel) shall not be an Event of Default if:
|
| (a) |
that Vessel or other vessel is insured in accordance with the Security Documents and a claim for Total Loss is available under the terms of the relevant
insurances; and
|
| (b) |
no insurer has refused to meet or has disputed the claim for Total Loss and it is not apparent to the Agent that any such refusal or dispute is likely to
occur; and
|
| (c) |
payment of all insurance proceeds in respect of the Total Loss is made in full to the Security Agent within 120 days of the occurrence of the casualty
giving rise to the Total Loss in question (save that, in relation to a Total Loss under part (c) of the definition of Total Loss, an Event of Default shall not occur if payment of all insurance proceeds in respect of that Total Loss
is made in full to the Security Agent within 120 days after that Total Loss has occurred) or (in each such case) such longer period as the Agent may agree.
|
| 24.1.18 |
Challenge to registration The registration of a
Vessel or a Mortgage is contested or becomes void or voidable or liable to cancellation or termination, or the validity or priority of a Mortgage is contested.
|
| 24.1.19 |
War The country of registration of a Vessel becomes
involved in war (whether or not declared) or civil war or is occupied by any other power and the Agent considers that, as a result, the security conferred by any of the Security Documents is materially prejudiced.
|
| 24.1.20 |
Master Agreement termination A notice is given by
the Swap Provider under section 6(a) of the Master Agreement, or by any person under section 6(b)(iv) of the Master Agreement, in either case designating an Early Termination Date for the purpose of the Master Agreement, or the Master
Agreement is for any other reason terminated, cancelled, suspended, rescinded, revoked or otherwise ceases to remain in full force and effect.
|
| 24.1.21 |
Notice of determination A Guarantor gives notice to
the Security Agent to determine any obligations under the relevant Guarantee.
|
| 24.1.22 |
Litigation Any litigation, arbitration or
administrative proceedings or investigations of, or before, any court, arbitral body or agency are started or threatened, or any judgment or order of a court, arbitral body or agency is made, in relation to the Relevant Documents or
the transactions contemplated in the Relevant Documents or against an Obligor or any other member of the Group or its assets which have, or has, or are, or is, reasonably likely to have a Material Adverse Effect.
|
| 24.1.23 |
Material adverse change Any event or circumstance
occurs which the Majority Lenders reasonably believe has or is reasonably likely to have a Material Adverse Effect.
|
| 24.1.24 |
Sanctions
|
| (a) |
Any Relevant Person becomes a Restricted Party.
|
| 24.2 |
Acceleration On and at any time after the
occurrence of an Event of Default the Agent may, and shall if so directed by the Majority Lenders:
|
| 24.2.1 |
by notice to the Borrowers:
|
| (a) |
cancel the Total Commitments, at which time they shall immediately be cancelled;
|
| (b) |
declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be
immediately due and payable, at which time they shall become immediately due and payable; and/or
|
| (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 Majority Lenders; and/or
|
| 24.2.2 |
exercise or direct the Security Agent to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.
|
| Section 9 |
Changes to Parties
|
| 25. |
CHANGES TO THE LENDERS
|
| 25.1 |
Assignments and transfers by the Lenders Subject to
this Clause 25, a Lender (the "Existing Lender") may, subject to the prior written consent of the Borrowers (such consent not to be
unreasonably withheld or unduly delayed):
|
| 25.1.1 |
assign any of its rights; or
|
| 25.1.2 |
transfer by novation any of its rights and obligations,
|
| 25.2 |
Conditions of assignment or transfer
|
| 25.2.1 |
An Existing Lender must consult with the Borrowers for no more than five days before it may make an assignment or transfer in accordance with Clause 25.1 (Assignments and transfers by the Lenders) unless the assignment or transfer is:
|
| (a) |
to another Lender or an Affiliate of any Lender;
|
| (b) |
to a fund which is a Related Fund of that Existing Lender; or
|
| (c) |
to the Arranger or an Affiliate of the Arranger and made in connection with the facilitation of primary syndication or first utilisation;
|
| (d) |
made at a time when an Event of Default is continuing.
|
| 25.2.2 |
An assignment will only be effective on:
|
| (a) |
receipt by the Agent (whether in the Assignment Agreement or otherwise) 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 Secured Parties as it would have been under if it had been an Original Lender; and
|
| (b) |
performance by the Agent of all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to such
assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.
|
| 25.2.3 |
A transfer will only be effective if the procedure set out in Clause 25.5 (Procedure for transfer) is complied with.
|
| 25.2.4 |
If:
|
| (a) |
a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and
|
| (b) |
as a result of circumstances existing at the date the assignment, transfer or change occurs, a Borrower or a Guarantor would be obliged to make a payment to
the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax Gross Up and Indemnities) or Clause 13 (Increased Costs),
|
| (c) |
in respect of an assignment or transfer made in the ordinary course of the primary syndication of the Loan; or
|
| (d) |
in relation to Clause 12.2 (Tax gross-up), to a
Treaty Lender that has included a confirmation of its scheme reference number and its jurisdiction of tax residence in accordance with Clause 12.2.6(b)(ii) (Tax gross-up) if the Borrower making the payment has not made a Borrower DTTP Filing in respect of that Treaty Lender.
|
| 25.2.5 |
Each New Lender, by executing the relevant Transfer Certificate or Assignment Agreement, 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 or assignment 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.
|
| 25.3 |
Assignment or transfer fee
|
| 25.3.1 |
Subject to Clause 25.3.2, the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee
of $3,000.
|
| 25.3.2 |
No fee is payable pursuant to Clause 25.3.1 if:
|
| (a) |
the Agent agrees that no fee is payable; or
|
| (b) |
the assignment or transfer is made by an Existing Lender:
|
| (i) |
to an Affiliate of that Existing Lender;
|
| (ii) |
to a fund which is a Related Fund of that Existing Lender; or
|
| (iii) |
in connection with primary syndication of the Loan.
|
| 25.4 |
Limitation of responsibility of Existing Lenders
|
| 25.4.1 |
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 Relevant Documents or any other documents;
|
| (b) |
the financial condition of any Obligor;
|
| (c) |
the performance and observance by any Obligor or any other member of the Group of its obligations under the Relevant Documents or any other documents; or
|
| (d) |
the accuracy of any statements (whether written or oral) made in or in connection with any of the Relevant Documents or any other document,
|
| 25.4.2 |
Each New Lender confirms to the Existing Lender and the other Finance Parties that it:
|
| (a) |
has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and each other
member of the Group and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any of the Relevant
Documents; and
|
| (b) |
will continue to make its own independent appraisal of the creditworthiness of each Obligor and each other member of the Group and its related entities
while any amount is or may be outstanding under the Finance Documents or any Commitment is in force.
|
| 25.4.3 |
Nothing in any Finance Document obliges an Existing Lender to:
|
| (a) |
accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 25; 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 Relevant
Documents or otherwise.
|
| 25.5 |
Procedure for transfer
|
| 25.5.1 |
Subject to the conditions set out in Clause 25.2 (Conditions
of assignment or transfer) a transfer is effected in accordance with Clause 25.5.3 when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Agent
shall, subject to
|
| 25.5.2 |
The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has
complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.
|
| 25.5.3 |
Subject to Clause 25.9 (Pro rata interest settlement),
on the Transfer Date:
|
| (a) |
to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each
Borrower and each Guarantor and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another shall be cancelled (being the "Discharged Rights and Obligations");
|
| (b) |
each Borrower and each Guarantor and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from
the Discharged Rights and Obligations only insofar as that Borrower and that Guarantor and the New Lender have assumed and/or acquired the same in place of that Borrower and that Guarantor and the Existing Lender;
|
| (c) |
the Agent, the Security Agent, the Arranger, the New Lender and other Lenders 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 Agent, the Security Agent,
the Arranger and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and
|
| (d) |
the New Lender shall become a Party as a "Lender".
|
| 25.6 |
Procedure for assignment
|
| 25.6.1 |
Subject to the conditions set out in Clause 25.2 (Conditions
of assignment or transfer) an assignment may be effected in accordance with Clause 25.6.3 when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.
The Agent shall, subject to Clause 25.6.2, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance
with the terms of this Agreement, execute that Assignment Agreement.
|
| 25.6.2 |
The Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has
complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.
|
| 25.6.3 |
Subject to Clause 25.9 (Pro rata interest settlement),
on the Transfer Date:
|
| (a) |
the Existing Lender will assign absolutely to the New Lender its rights under the Finance Documents and in respect of any Encumbrance created or expressed
to be created or evidenced by the Security Documents and expressed to be the subject of the assignment in the Assignment Agreement;
|
| (b) |
the Existing Lender will be released from the obligations (the "Relevant Obligations") expressed to be the subject of the release in the Assignment Agreement (and any corresponding obligations by which it is bound in respect of any Encumbrance created or expressed to be created or
evidenced by the Security Documents); and
|
| (c) |
the New Lender shall become a Party as a "Lender" and will be bound by obligations equivalent to the Relevant Obligations.
|
| 25.6.4 |
Lenders may utilise procedures other than those set out in this Clause 25.6 to assign their rights under the Finance Documents (but not, without the consent
of the relevant Obligor or unless in accordance with Clause 25.5 (Procedure for transfer), to obtain a release by that Obligor
from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that
they comply with the conditions set out in Clause 25.2 (Conditions of assignment or transfer).
|
| 25.7 |
Copy of Transfer Certificate or Assignment Agreement to
Borrowers The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Borrowers a copy of that Transfer Certificate or Assignment Agreement.
|
| 25.8 |
Security over Lenders' rights In addition to the
other rights provided to Lenders under this Clause 25, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create Encumbrances in or over (whether by way of collateral
or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:
|
| 25.8.1 |
any charge, assignment or other Encumbrance to secure obligations to a federal reserve or central bank; and
|
| 25.8.2 |
any charge, assignment or other Encumbrance granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by
that Lender as security for those obligations or securities,
|
| (a) |
release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Encumbrance for
the Lender as a party to any of the Finance Documents; or
|
| (b) |
require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made
or granted to the relevant Lender under the Finance Documents.
|
| 25.9 |
Pro rata interest settlement
|
| 25.9.1 |
If the Agent has notified the Lenders that it is able to distribute interest payments on a "pro rata basis" to Existing Lenders and New Lenders then (in
respect of any transfer pursuant to Clause 25.5 (Procedure for transfer) or any assignment pursuant to Clause 25.6 (Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day
of an Interest Period):
|
| (a) |
any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in
favour of the Existing Lender up to but excluding the Transfer Date ("Accrued Amounts") and shall become due and payable to the
Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six Months, on the next of the dates which falls at intervals of six Months after
the first day of that Interest Period); and
|
| (b) |
the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt:
|
| (i) |
when the Accrued Amounts become payable, those Accrued Amounts will be payable for the account of the Existing Lender; and
|
| (ii) |
the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 25.9, have been payable to it on
that date, but after deduction of the Accrued Amounts.
|
| 25.9.2 |
In this Clause 25.9 references to "Interest Period" shall be construed to include a reference to any other period for accrual of fees.
|
| 25.9.3 |
An Existing Lender which retains the right to the Accrued Amounts pursuant to this Clause 25.9 but which does not have a Commitment shall be deemed not to
be a Lender for the purposes of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve any request for a consent, waiver, amendment or other vote of Lenders under the Finance Documents.
|
| 26. |
Changes To The Obligors
|
| 26.1 |
No assignment or transfer by Obligors No Obligor
may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.
|
| 26.2 |
Additional Guarantors
|
| 26.2.1 |
Subject to compliance with the provisions of Clauses 21.7.3 and 21.7.4 ("Know your customer" checks), the Borrowers or the Original Guarantor may request that any Affiliate of a Borrower become a Guarantor.
|
| 26.2.2 |
An Affiliate of a Borrower shall become an Additional Guarantor if:
|
| (a) |
the Borrowers or the Original Guarantor and the proposed Additional Guarantor deliver to the Agent a duly completed and executed Accession Deed; and
|
| (b) |
the Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) and, if applicable, Part II of Schedule 2 (Conditions Subsequent)
in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent.
|
| 26.2.3 |
The Agent shall notify the Borrowers and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the
documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) and, if applicable, Part II of Schedule 2 (Conditions Subsequent).
|
| 26.2.4 |
Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in Clause
26.2.3, the Lenders authorise (but do not require) the Agent to give that notification. The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.
|
| 26.3 |
Resignation of a Guarantor
|
| 26.3.1 |
The Borrowers or the Original Guarantor may request that a Guarantor (other than the Original Guarantor ) ceases to be a Guarantor by delivering to the
Agent a Resignation Letter if all the Lenders have consented to the resignation of that Guarantor.
|
| 26.3.2 |
The Agent shall accept a Resignation Letter and notify the Borrowers and the Lenders of its acceptance if:
|
| (a) |
the Borrowers have confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter; and
|
| (b) |
no payment is due from any Guarantor under Clause 19.1 (Guarantee
and Indemnity).
|
| 26.4 |
Repetition of Representations
|
| 27. |
Role of the Agent, the Security Agent and the Arranger
|
| 27.1 |
Appointment of the Agent
|
| 27.1.1 |
Each of the Arranger and the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents and each of the Arranger, the
Lenders and the Agent appoints the Security Agent to act as its security agent for the purpose of the Security Documents.
|
| 27.1.2 |
Each of the Arranger and the Lenders authorises the Agent and each of the Arranger, the Lenders and the Agent authorises the Security Agent to perform the
duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Agent or the Security Agent (as the case may be) under or in connection with the Finance Documents
together with any other incidental rights, powers, authorities and discretions.
|
| 27.1.3 |
The Swap Provider appoints the Security Agent to act as its security agent for the purpose of the Security Documents and authorises the Security Agent to
exercise the rights, powers, authorities and discretions specifically given to the Security Agent under or in connection with the Security Documents together with any other incidental rights, powers, authorities and discretions.
|
| 27.1.4 |
Except in Clause 27.14 (Replacement of the Agent) or
where the context otherwise requires, references in this Clause 27 to the "Agent" shall mean the Agent and the Security Agent
individually and collectively and references in this Clause 27 to the "Finance Documents" or to any "Finance Document" shall not include the Master Agreement.
|
| 27.2 |
Instructions
|
| 27.2.1 |
The Agent shall:
|
| (a) |
unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as
Agent in accordance with any instructions given to it by:
|
| (i) |
all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and
|
| (ii) |
in all other cases, the Majority Lenders; and
|
| (b) |
not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with Clause 27.2.1(a).
|
| 27.2.2 |
The Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document
stipulates the matter is a decision for any other Lender or group of Lenders, from that Lender or group of Lenders) as to whether, and in what manner, it
|
| 27.2.3 |
Save in the case of decisions stipulated to be a matter for any other Lender or group of Lenders under the relevant Finance Document and unless a contrary
indication appears in a Finance Document, any instructions given to the Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties.
|
| 27.2.4 |
The Agent may refrain from acting in accordance with any instructions of any Lender or group of Lenders until it has received any indemnification and/or
security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with
those instructions.
|
| 27.2.5 |
In the absence of instructions, the Agent may act (or refrain from acting) as it considers to be in the best interest of the Lenders.
|
| 27.2.6 |
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 27.2.6 shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Finance Documents or the enforcement of the Finance Documents.
|
| 27.3 |
Duties of the Agent
|
| 27.3.1 |
The Agent's duties under the Finance Documents are solely mechanical and administrative in nature.
|
| 27.3.2 |
Subject to Clause 27.3.3, 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.
|
| 27.3.3 |
Without prejudice to Clause 25.7 (Copy of Transfer
Certificate or Assignment Agreement to Borrowers), Clause 27.3.1 shall not apply to any Transfer Certificate or any Assignment Agreement.
|
| 27.3.4 |
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.
|
| 27.3.5 |
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 Finance Parties.
|
| 27.3.6 |
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, the
Arranger or the Security Agent) under this Agreement it shall promptly notify the other Finance Parties.
|
| 27.3.7 |
The Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party
(and no others shall be implied).
|
| 27.4 |
Role of the Arranger Except as specifically
provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.
|
| 27.5 |
No fiduciary duties
|
| 27.5.1 |
Subject to Clause 27.12 (Trust) which relates to the
Security Agent only, nothing in any Finance Document constitutes the Agent or the Arranger as a trustee or fiduciary of any other person.
|
| 27.5.2 |
Neither the Agent nor the 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.
|
| 27.6 |
Business with Obligors and the Group The Agent and
the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any Borrower, any other Obligor or its Affiliate and any other member of the Group.
|
| 27.7 |
Rights and discretions of the Agent
|
| 27.7.1 |
The Agent may:
|
| (a) |
rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorised;
|
| (b) |
assume that:
|
| (i) |
any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders are duly given in accordance with the terms of the Finance
Documents; and
|
| (ii) |
unless it has received notice of revocation, that those instructions have not been revoked; and
|
| (iii) |
rely on a certificate from any person:
|
| (A) |
as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or
|
| (B) |
to the effect that such person approves of any particular dealing, transaction, step, action or thing,
|
| 27.7.2 |
The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders or security agent for the Finance Parties (as
the case may be)) that:
|
| (a) |
no Default has occurred (unless it has actual knowledge of a Default arising under Clause 24.1 (Events of Default));
|
| (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 Borrowers (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors.
|
| 27.7.3 |
The Agent may engage and pay for the advice or services of any lawyers, accountants, surveyors or other experts.
|
| 27.7.4 |
Without prejudice to the generality of Clause 27.7.3 or Clause 27.7.5, the Agent may at any time engage and pay for the services of any lawyers to act as
independent counsel to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent in its reasonable opinion deems this to be desirable.
|
| 27.7.5 |
The Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether
obtained by the Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.
|
| 27.7.6 |
The Agent may act in relation to the Finance Documents through its officers, employees and agents and the Agent shall not:
|
| (a) |
be liable for any error of judgment made by any such person; or
|
| (b) |
be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part, of any such person,
|
| 27.7.7 |
Unless a Finance Document expressly provides otherwise the Agent may disclose to any other Party any information it reasonably believes it has received as
agent under this Agreement.
|
| 27.7.8 |
Without prejudice to the generality of Clause 27.7.7, the Agent:
|
| (a) |
may disclose; and
|
| (b) |
on the written request of the Borrowers or the Majority Lenders shall, as soon as reasonably practicable, disclose,
|
| 27.7.9 |
Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the 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.
|
| 27.7.10 |
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 purpose of Clause 10.2 (Market Disruption).
|
| 27.7.11 |
Notwithstanding any provision of any Finance Document to the contrary, the Agent is not obliged to expend or risk its own funds or otherwise incur any
financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity
against, or security for, such risk or liability is not reasonably assured to it.
|
| 27.8 |
Responsibility for documentation Neither the Agent
nor the Arranger is responsible or liable for:
|
| 27.8.1 |
the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Arranger, an Obligor or any other person
given in or in connection with any Relevant Document or the transactions contemplated in the Finance Documents; or
|
| 27.8.2 |
the legality, validity, effectiveness, adequacy or enforceability of any Relevant Document or any other agreement, arrangement or document entered into,
made or executed in anticipation of or in connection with any Relevant Document.; or
|
| 27.8.3 |
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.
|
| 27.9 |
No duty to monitor The Agent shall not be bound to
enquire:
|
| 27.9.1 |
whether or not any Default has occurred;
|
| 27.9.2 |
as to the performance, default or any breach by any Party of its obligations under any Finance Document; or
|
| 27.9.3 |
whether any other event specified in any Finance Document has occurred.
|
| 27.10 |
Exclusion of liability
|
| 27.10.1 |
Without limiting Clause 27.10.2 (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Agent) the
Agent shall not be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:
|
| (a) |
any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action
under or in connection with any Finance Document or any Encumbrance created or expressed to be created or evidenced by the Security Documents, unless directly caused by its gross negligence or wilful misconduct;
|
| (b) |
exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document, any Encumbrance
created or expressed to be created or evidenced by the Security Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or any
Encumbrance created or expressed to be created or evidenced by the Security Documents;
|
| (c) |
any shortfall which arises on the enforcement or realisation of the Trust Property; or
|
| (d) |
without prejudice to the generality of Clauses 27.10.1(a), 27.10.1(b) and 27.10.1(c), any damages, costs or losses to any person, any diminution in value or
any liability whatsoever arising as a result of:
|
| (i) |
any act, event or circumstance not reasonably within its control; or
|
| (ii) |
the general risks of investment in, or the holding of assets in, any jurisdiction,
|
| 27.10.2 |
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 Relevant Document and any officer, employee or agent of the Agent may rely on this Clause subject to Clause 1.7 (Third Party Rights) and the provisions of the Third Parties Act.
|
| 27.10.3 |
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
|
| 27.10.4 |
Nothing in this Agreement shall oblige the Agent or the Arranger to carry out:
|
| (a) |
any "know your customer" or other checks in relation to any person;
|
| (b) |
any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Lender or for any Affiliate of any Lender,
|
| 27.10.5 |
Without prejudice to any provision of any Finance Document excluding or limiting the Agent's liability, any liability of the Agent arising under or in
connection with any Finance Document or any Encumbrance created or expressed to be created or evidenced by the Security Documents shall be limited to the amount of actual loss which has been finally judicially determined to have been
suffered (as determined by reference to the date of default of the Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent
at any time which increase the amount of that loss. In no event shall the Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential
damages, whether or not the Agent has been advised of the possibility of such loss or damages.
|
| 27.11 |
Lenders' indemnity to the Agent
|
| 27.11.1 |
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 and every Receiver and Delegate, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other
category of liability whatsoever) incurred by any of them (otherwise than by reason of the relevant Agent's, Receiver's or Delegate's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to
Clause 31.11 (Disruption to payment systems etc.) notwithstanding the Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent, Receiver or Delegate
under, or exercising any authority conferred under, the Finance Documents (unless the relevant Agent, Receiver or Delegate has been reimbursed by an Obligor pursuant to a Finance Document).
|
| 27.11.2 |
Subject to Clause 27.11.3, the Borrowers shall immediately on demand reimburse any Lender for any payment that Lender makes to the Agent pursuant to Clause
27.11.1
|
| 27.11.3 |
Clause 27.11.2 shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability of the
Agent to an Obligor.
|
| 27.12 |
Trust The Security Agent agrees and declares, and
each of the other Finance Parties acknowledges, that, subject to the terms and conditions of this Clause 27.12, the Security Agent holds the Trust Property on trust for the Finance Parties absolutely. Each of the other Finance
Parties agrees that the obligations, rights and benefits vested in the Security Agent shall be performed and exercised in accordance with this Clause 27.12. The Security Agent shall have the benefit of all of the provisions of this
Agreement benefiting it in its capacity as security agent for the Finance Parties, and all the powers and discretions conferred on trustees by the Trustee Act 1925 (to the extent not inconsistent with this Agreement). In addition:
|
| 27.12.1 |
the Security Agent and any Delegate may indemnify itself or himself out of the Trust Property against all liabilities, costs, fees, damages, charges, losses
and expenses sustained or incurred by it or him in relation to the taking or holding of any of the Trust Property or in connection with the exercise or purported exercise of the rights, trusts, powers and discretions vested in the
Security Agent or any Delegate by or pursuant to the Security Documents or in respect of anything else done or omitted to be done in any way relating to the Security Documents;
|
| 27.12.2 |
the other Finance Parties acknowledge that the Security Agent shall be under no obligation to insure any property nor to require any other person to insure
any property and shall not be responsible for any loss which may be suffered by any person as a result of the lack or insufficiency of any insurance;
|
| 27.12.3 |
the Finance Parties agree that the perpetuity period applicable to the trusts declared by this Agreement shall be the period of 125 years from the date of
this Agreement;
|
| 27.12.4 |
the Security Agent shall not be liable for any failure, omission, or defect in perfecting the security constituted or created by any Finance Document
including, without limitation, any failure to register the same in accordance with the provisions of any of the documents of title of any Obligor to any of the assets thereby charged or effect or procure registration of or otherwise
protect the security created by any Security Document under any registration laws in any jurisdiction and may accept without enquiry such title as any Obligor may have to any asset;
|
| 27.12.5 |
the Security Agent shall not be under any obligation to hold any title deed, Finance Document or any other documents in connection with the Finance
Documents or any other documents in connection with the property charged by any Finance Document or any other such security in its own possession or to take any steps to protect or preserve the same, and may permit any
|
| 27.12.6 |
save as otherwise provided in the Finance Documents, all moneys which under the trusts therein contained are received by the Security Agent may be placed on
deposit in the name of or under the control of the Security Agent at such bank or institution (including the Security Agent) and upon such terms as the Security Agent may think fit pending application of those moneys in accordance
with Clause 28 (Application of Proceeds).
|
| 27.13 |
Resignation of the Agent
|
| 27.13.1 |
The Agent may resign and appoint one of its Affiliates acting through an office as successor by giving notice to the other Finance Parties and the
Borrowers.
|
| 27.13.2 |
Alternatively the Agent may resign by giving 30 days' notice to the other Finance Parties and the Borrowers, in which case the Majority Lenders (after
consultation with the Borrowers) may appoint a successor Agent.
|
| 27.13.3 |
If the Majority Lenders have not appointed a successor Agent in accordance with Clause 27.13.2 within 20 days after notice of resignation was given, the
retiring Agent (after consultation with the Borrowers) may appoint a successor Agent.
|
| 27.13.4 |
If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is
entitled to appoint a successor Agent under Clause 27.13.3, the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent to become a party to this Agreement as
Agent) agree with the proposed successor Agent amendments to this Clause 27 and any other term of this Agreement dealing with the rights or obligations of the Agent consistent with then current market practice for the appointment and
protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent's normal fee rates and those amendments will bind the Parties.
|
| 27.13.5 |
The retiring Agent shall 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. The Borrowers shall, within three Business Days of demand, reimburse the retiring Agent for the amount of all costs and expenses (including
legal fees) properly incurred by it in making available such documents and records and providing such assistance.
|
| 27.13.6 |
The Agent's resignation notice shall only take effect upon the appointment of a successor and (in the case of the Security Agent) the transfer of all the
Trust Property to that successor.
|
| 27.13.7 |
Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its
obligations under Clause 27.13.5) but shall remain entitled to the benefit of Clause 14.3 (Indemnity to the Agent) and this Clause
27 (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be payable on) that date). Any successor and each of the other Parties shall have the same rights and obligations amongst themselves
as they would have had if such successor had been an original Party.
|
| 27.13.8 |
The Agent shall resign in accordance with Clause 27.13.2 (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent
pursuant to Clause 27.13.3) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:
|
| (a) |
the Agent fails to respond to a request under Clause 12.8 (FATCA
information) and a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;
|
| (b) |
the information supplied by the Agent pursuant to Clause 12.8 (FATCA information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or
|
| (c) |
the Agent notifies the Borrowers and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA
Application Date;
|
| 27.14 |
Replacement of the Agent
|
| 27.14.1 |
After consultation with the Borrowers, the Majority Lenders may, by giving 30 days' notice to the Agent replace the Agent by appointing a successor Agent.
|
| 27.14.2 |
The retiring Agent shall (at the expense of the Lenders) 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 function as Agent under the Finance Documents.
|
| 27.14.3 |
The appointment of the successor Agent shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent. As from this
date, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under Clause 27.14.2 but shall remain entitled to the benefit of Clause 14.3 (Indemnity to the Agent) and this Clause 27 (and any agency fees for the
|
| 27.14.4 |
Any successor Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had
been an original Party.
|
| 27.15 |
Confidentiality
|
| 27.15.1 |
In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity
from any other of its divisions or departments.
|
| 27.15.2 |
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.
|
| 27.16 |
Relationship with the Lenders
|
| 27.16.1 |
Subject to Clause 25.9 (Pro rata interest settlement),
the Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent's principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility
Office:
|
| (a) |
entitled to or liable for any payment due under any Finance Document on that day; and
|
| (b) |
entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or
delivered on that day,
|
| 27.16.2 |
Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or
dispatched to that Lender under the Finance Documents. Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 33.5 (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means
(and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that
Lender for the purposes of Clause 33.2 (Addresses) and Clause 33.5 (Electronic communication) and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that
person were that Lender.
|
| 27.17 |
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 Relevant Document, each Lender confirms to the Agent and the Arranger that it has been, and
|
| 27.17.1 |
the financial condition, status and nature of each Obligor and each other member of the Group;
|
| 27.17.2 |
the legality, validity, effectiveness, adequacy or enforceability of any Relevant Document and any other agreement, arrangement or document entered into,
made or executed in anticipation of, under or in connection with any Relevant Document;
|
| 27.17.3 |
whether that Lender 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 Relevant Document, the transactions contemplated by the Relevant Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of under or in connection with any Relevant Document; and
|
| 27.17.4 |
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
Relevant Document, the transactions contemplated by the Relevant Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Relevant Document; and
|
| 27.17.5 |
the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any Encumbrance created or
expressed to be created or evidenced by the Security Documents or the existence of any Encumbrance affecting the Charged Property.
|
| 27.18 |
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 Borrowers) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.
|
| 27.19 |
Agent's management time Any amount payable to the
Agent under Clause 14.3 (Indemnity to the Agent), Clause 14.4 (Indemnity to the Security Agent), Clause 16 (Costs and expenses) and Clause 27.11 (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 Borrowers and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 11 (Fees).
|
| 27.20 |
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.
|
| 28. |
Application of Proceeds
|
| 28.1 |
Order of application Subject to Clause 28.2
(Prospective liabilities), all amounts from time to time received or recovered by the Security Agent pursuant to the terms of any Finance Document or in connection with the realisation or enforcement of all or any Encumbrance created
or expressed to be created under the Security Documents (for the purposes of this Clause 28, the "Recoveries") shall be held by the
Security Agent on trust to apply them at any time as the Security Agent (in its discretion) sees fit, to the extent permitted by applicable law (and subject to the provisions of this Clause 28), in the following order:
|
| 28.1.1 |
in discharging any sums owing to the Security Agent, any Receiver or any Delegate;
|
| 28.1.2 |
in payment of all costs and expenses incurred by the Agent or any Secured Party in connection with any realisation or enforcement of any Encumbrance created
or expressed to be created under the Security Documents taken in accordance with the terms of this Agreement; and
|
| 28.1.3 |
in payment to the Agent for application in accordance with Clause 31.5 (Partial payments).
|
| 28.2 |
Prospective liabilities Following enforcement of
any Encumbrance created or expressed to be created under the Security Documents the Security Agent may, in its discretion, hold any amount of the Recoveries in an interest bearing suspense or impersonal account(s) in the name of the
Security Agent with such financial institution (including itself) and for so long as the Security Agent shall think fit (the interest being credited to the relevant account) for later application under Clause 28.1 (Order of application) in respect of:
|
| 28.2.1 |
any sum to the Security Agent, any Receiver or any Delegate; and
|
| 28.2.2 |
any part of the Indebtedness,
|
| 28.3 |
Investment of proceeds Prior to the application of
the proceeds of the Recoveries in accordance with Clause 28.1 (Order of application) the Security Agent may, in its discretion,
hold all or part of those proceeds in an interest bearing suspense or impersonal account(s) in the name of the Security Agent with such financial institution (including itself) and for so long as the Security Agent shall think fit
(the interest being credited to the relevant account) pending the application from time to time of those moneys in the Security Agent's discretion in accordance with the provisions of this Clause 28.
|
| 28.4 |
Currency conversion
|
| 28.4.1 |
For the purpose of, or pending the discharge of, any part of the Indebtedness the Security Agent may convert any moneys received or recovered by the
Security Agent from one currency to another, at a market rate of exchange.
|
| 28.4.2 |
The obligations of any Obligor to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting
the costs of conversion.
|
| 28.5 |
Permitted deductions The Security Agent shall be
entitled, in its discretion:
|
| 28.5.1 |
to set aside by way of reserve amounts required to meet, and to make and pay, any deductions and withholdings (on account of taxes or otherwise) which it is
or may be required by any applicable law to make from any distribution or payment made by it under this Agreement; and
|
| 28.5.2 |
to pay all Taxes which may be assessed against it in respect of any of the Trust Property, or as a consequence of performing its duties, or by virtue of its
capacity as Security Agent under any of the Finance Documents or otherwise (other than in connection with its remuneration for performing its duties under this Agreement).
|
| 28.6 |
Good discharge
|
| 28.6.1 |
Any payment to be made in respect of the Indebtedness by the Security Agent may be made to the Agent on behalf of the Finance Parties and any payment made
in that way shall be a good discharge, to the extent of that payment, by the Security Agent.
|
| 28.6.2 |
The Security Agent is under no obligation to make the payments to the Agent under Clause 28.6.1 in the same currency as that in which the obligations and
liabilities owing to the relevant Finance Party are denominated.
|
| 29. |
Conduct of Business by the Finance Parties
|
| 29.1 |
interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;
|
| 29.2 |
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
|
| 29.3 |
oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.
|
| 30. |
Sharing Among the Finance Parties
|
| 30.1 |
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 31 (Payment Mechanics) (a "Recovered
Amount") and applies that amount to a payment due under the Finance Documents then:
|
| 30.1.1 |
the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery, to the Agent;
|
| 30.1.2 |
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
|
| 30.1.3 |
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 31.5 (Partial payments).
|
| 30.2 |
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) (the "Sharing Finance Parties") in accordance with Clause 31.5 (Partial payments) towards the
obligations of that Obligor to the Sharing Finance Parties.
|
| 30.3 |
Recovering Finance Party's rights On a distribution
by the Agent under Clause 30.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor,
as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.
|
| 30.4 |
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:
|
| 30.4.1 |
each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the
appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is
required to pay) (the "Redistributed Amount"); and
|
| 30.4.2 |
as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having
been paid by that Obligor.
|
| 30.5 |
Exceptions
|
| 30.5.1 |
This Clause 30 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.
|
| 30.5.2 |
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, 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
|
| 31. |
PAYMENT MECHANICS
|
| 31.1 |
Payments to the Agent On each date on which an
Obligor or a Lender is required to make a payment under a Finance Document (other than the Master Agreement), that Obligor or that 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.
|
| 31.2 |
Distributions by the Agent Each payment received by
the Agent under the Finance Documents for another Party shall, subject to Clause 31.3 (Distributions to an Obligor) and Clause
31.4 (Clawback and pre-funding) 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
specified by that Party in the principal financial centre of the country of that currency.
|
| 31.3 |
Distributions to an Obligor The Agent may (with the
consent of an Obligor or in accordance with Clause 32 (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.
|
| 31.4 |
Clawback and pre-funding
|
| 31.4.1 |
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.
|
| 31.4.2 |
Unless Clause 31.4.3 applies, 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.
|
| 31.4.3 |
If the Agent is willing to make available amounts for the account of a Borrower before receiving funds from the Lenders then if and to the extent that the
Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to a Borrower:
|
| (a) |
the Agent shall notify the Borrowers of that Lender's identity and the Borrower to whom that sum was made available shall on demand refund it to the Agent;
and
|
| (b) |
the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower to whom that sum was made available, shall on
demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.
|
| 31.5 |
Partial payments
|
| 31.5.1 |
If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents (other than
the Master Agreement), the Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents (other than the Master Agreement) in the following order:
|
| (a) |
first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent or the Security Agent under the Finance Documents;
|
| (b) |
secondly, in or towards payment pro rata of any accrued interest, fee 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; and
|
| (d) |
fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents,
|
| 31.5.2 |
The Agent shall, if so directed by the Majority Lenders, vary the order set out in Clauses 31.5.1(b) to 31.5.1(d).
|
| 31.5.3 |
Clauses 31.5.1 and 31.5.2 will override any appropriation made by an Obligor.
|
| 31.6 |
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.
|
| 31.7 |
Business Days Any payment under the Finance
Documents 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).
|
| 31.8 |
Currency of account
|
| 31.8.1 |
Subject to Clauses 31.8.2 to 31.8.5, dollars is the currency of account and payment for any sum due from an Obligor under any Finance Document.
|
| 31.8.2 |
A repayment or payment of all or part of a Vessel Loan or an Unpaid Sum shall be made in the currency in which that Vessel Loan or Unpaid Sum is
denominated, pursuant to this Agreement, on its due date.
|
| 31.8.3 |
Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated, pursuant to this
Agreement, when that interest accrued.
|
| 31.8.4 |
Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.
|
| 31.8.5 |
Any amount expressed to be payable in a currency other than dollars shall be paid in that other currency.
|
| 31.9 |
Control account The Agent shall open and maintain
on its books a control account in the names of the Borrowers showing the advance of the Loan and the computation and payment of interest and all other sums due under this Agreement. The Borrowers' obligations to repay the Loan and to
pay interest and all other sums due under this Agreement shall be evidenced by the entries from time to time made in the control account opened and maintained under this Clause 31.9 and those entries will, in the absence of manifest
error, be conclusive and binding.
|
| 31.10 |
Change of currency
|
| 31.10.1 |
Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the
lawful currency of that country, then:
|
| (a) |
any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated
into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Borrowers); and
|
| (b) |
any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of
that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).
|
| 31.10.2 |
If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Borrowers)
specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Market and otherwise to reflect the change in currency.
|
| 31.11 |
Disruption to payment systems etc. If either the
Agent determines that a Disruption Event has occurred or the Agent is notified by the Borrowers that a Disruption Event has occurred:
|
| 31.11.1 |
the Agent may, and shall if requested to do so by the Borrowers, consult with the Borrowers with a view to agreeing with the Borrowers such changes to the
operation or administration of the Loan as the Agent may deem necessary in the circumstances;
|
| 31.11.2 |
the Agent shall not be obliged to consult with the Borrowers in relation to any changes mentioned in Clause 31.11.1 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 any such changes;
|
| 31.11.3 |
the Agent may consult with the Finance Parties in relation to any changes mentioned in Clause 31.11.1 but shall not be obliged to do so if, in its opinion,
it is not practicable to do so in the circumstances;
|
| 31.11.4 |
any such changes agreed upon by the Agent and the Borrowers 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 37 (Amendments and Waivers);
|
| 31.11.5 |
the Agent shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability 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 31.11; and
|
| 31.11.6 |
the Agent shall notify the Finance Parties of all changes agreed pursuant to Clause 31.11.4.
|
| 32. |
Set-Off
|
| 32.1 |
Set-off A Finance Party may set off any matured
obligation due from an Obligor under the Finance Documents (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.
|
| 32.2 |
Master Agreement rights The rights conferred on the
Swap Provider by this Clause 32 shall be in addition to, and without prejudice to or limitation of, the rights of netting and set off conferred on the Swap Provider by the Master Agreement.
|
| 33. |
NOTICES
|
| 33.1 |
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.
|
| 33.2 |
Addresses The address and fax number (and the
department or officer, if any, for whose attention the communication is to be made) of each Party for any
|
| 33.2.1 |
in the case of each Borrower, that identified with its name below;
|
| 33.2.2 |
in the case of each Guarantor, that identified with its name below;
|
| 33.2.3 |
in the case of each Lender, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and
|
| 33.2.4 |
in the case of the Swap Provider, that identified with its name below; and
|
| 33.2.5 |
in the case of the Agent or the Security Agent, that identified with its name below,
|
| 33.3 |
Delivery Any communication or document made or
delivered by one person to another under or in connection with the Finance Documents will only be effective:
|
| 33.3.1 |
if by way of fax, when received in legible form; or
|
| 33.3.2 |
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;
|
| 33.4 |
Notification of address and fax number Promptly
upon changing its address or fax number, the Agent shall notify the other Parties.
|
| 33.5 |
Electronic communication
|
| 33.5.1 |
Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic
means (including, without limitation, by way of posting to a secure website) if those two Parties:
|
| (a) |
notify each other in writing of their electronic mail address and/or any other information required to enable the transmission of information by that means;
and
|
| (b) |
notify each other of any change to their address or any other such information supplied by them by not less than five Business Days' notice.
|
| 33.5.2 |
Any such electronic communication to be made between an Obligor and a Finance Party may only be made in that way to the extent that those two Parties agree
that, unless and until notified to the contrary, this is to be an accepted form of communication.
|
| 33.5.3 |
Any such electronic communication made between any two Parties will be effective only when actually received (or made available) in readable form and in the
case of any electronic communication made by a Party to the Agent or the Security Agent only if it is addressed in such a manner as the Agent or the Security Agent shall specify for this purpose.
|
| 33.5.4 |
Any electronic communication which becomes effective, in accordance with Clause 33.5.3, after 5.00 p.m. in the place in which the Party to whom the relevant
communication is sent or made available has its address for the purpose of this Agreement shall be deemed only to become effective on the following day.
|
| 33.5.5 |
Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in
accordance with this Clause 33.5.
|
| 33.6 |
Use of websites
|
| 33.6.1 |
Each Borrower may satisfy its obligations under this Agreement to deliver any information in relation to those Lenders (the "Website Lenders") who accept this method of communication by posting this information onto an electronic website designated by the Borrowers and the Agent (the
"Designated Website") if:
|
| (a) |
the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;
|
| (b) |
both the Borrowers and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and
|
| (c) |
the information is in a format previously agreed between the Borrowers and the Agent.
|
| 33.6.2 |
The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of
that website by the Borrowers and the Agent.
|
| 33.6.3 |
Each Borrower shall promptly upon becoming aware of its occurrence notify the Agent if:
|
| (a) |
the Designated Website cannot be accessed due to technical failure;
|
| (b) |
the password specifications for the Designated Website change;
|
| (c) |
any new information which is required to be provided under this Agreement is posted onto the Designated Website;
|
| (d) |
any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or
|
| (e) |
that Borrower becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic
virus or similar software.
|
| 33.6.4 |
Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the
Designated Website. Each Borrower shall at its own cost comply with any such request within ten Business Days.
|
| 33.7 |
English language Any notice given under or in
connection with any Finance Document must be in English. All other documents provided under or in connection with any Finance Document must be:
|
| 33.7.1 |
in English; or
|
| 33.7.2 |
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.
|
| 34. |
Calculations and Certificates
|
| 34.1 |
Accounts In any litigation or arbitration
proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by the Agent pursuant to Clause 31.9 (Control account) are prima facie evidence of the matters to which they relate.
|
| 34.2 |
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.
|
| 34.3 |
Day count convention Any interest, commission or
fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the Relevant Market differs, in
accordance with that market practice.
|
| 35. |
Partial Invalidity
|
| 36. |
Remedies and Waivers
|
| 37. |
Amendments and Waivers
|
| 37.1 |
Required consents
|
| 37.1.1 |
Subject to Clause 37.2 (Exceptions) any term of the
Finance Documents (other than the Master Agreement) may be amended or waived only with the consent of the Majority Lenders and the Borrowers and any such amendment or waiver will be binding on all Parties.
|
| 37.1.2 |
The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 37.
|
| 37.1.3 |
Without prejudice to the generality of Clauses 27.7.3, 27.7.4 and 27.7.5 (Rights and discretions of the Agent), the Agent may engage, pay for and rely on the services of lawyers in determining the consent level required for and effecting any amendment, waiver or consent under
this Agreement.
|
| 37.1.4 |
Clause 25.9.3 (Pro rata interest settlement) shall
apply to this Clause 37.
|
| 37.2 |
Exceptions
|
| 37.2.1 |
An amendment, waiver or (in the case of a Security Document) a consent of, or in relation to, any term of any Finance Document that has the effect of
changing or which relates to:
|
| (a) |
the definition of "Majority Lenders" in Clause 1.1 (Definitions);
|
| (b) |
an extension to the date of payment of any amount under the Finance Documents;
|
| (c) |
a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;
|
| (d) |
an increase in any Commitment, an extension of the Availability Period or any requirement that a cancellation of Commitments reduces the Commitments of the
Lenders rateably;
|
| (e) |
a change to a Guarantor other than in accordance with Clause 26 (Changes to the Obligors);
|
| (f) |
any provision which expressly requires the consent of all the Lenders;
|
| (g) |
Clause 2.2 (Finance Parties' rights and obligations),
Clause 5.1 (Delivery of a Utilisation Request), Clause 7.1 (Illegality), Clause 7.5 (Mandatory prepayment on sale or Total Loss), Clause 25 (Changes to the Lenders), Clause 26 (Changes
to the Obligors), this Clause 37, Clause 42 (Governing Law) or Clause 43.1 (Jurisdiction of English courts);
|
| (h) |
(other than as expressly permitted by the provisions of any Finance Document) the nature or scope of:
|
| (i) |
any Guarantee;
|
| (ii) |
the Charged Property; or
|
| (iii) |
the manner in which the proceeds of enforcement of the Security Documents are distributed; or
|
| (i) |
the release of any Guarantee or of any Encumbrance created or expressed to be created or evidenced by the Security Documents unless permitted under this
Agreement or any other Finance Document or relating to a sale or disposal of an asset which is the subject of any Encumbrance created or expressed to be created or evidenced by the Security Documents where such sale or disposal is
expressly permitted under this Agreement or any other Finance Document;
|
| 37.2.2 |
An amendment or waiver which relates to the rights or obligations of the Agent, the Security Agent or the Arranger (each in their capacity as such) may not
be effected without the consent of the Agent, the Security Agent or, as the case may be, the Arranger.
|
| 37.2.3 |
Replacement of Screen Rate
|
| (a) |
providing for the use of a Replacement Benchmark in relation to that currency in place of that Screen Rate; and
|
| (i) |
aligning any provision of any Finance Document to the use of that Replacement Benchmark;
|
| (ii) |
enabling that Replacement Benchmark to be used for the calculation of interest under this Agreement (including, without limitation, any consequential
changes required to enable that Replacement Benchmark to be used for the purposes of this Agreement);
|
| (iii) |
implementing market conventions applicable to that Replacement Benchmark;
|
| (iv) |
providing for appropriate fallback (and market disruption) provisions for that Replacement Benchmark; or
|
| (v) |
adjusting the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of economic value from one Party to another as a result of
the application of that Replacement Benchmark (and if any adjustment or method for calculating any adjustment has been formally designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall be determined
on the basis of that designation, nomination or recommendation),
|
| (a) |
formally designated, nominated or recommended as the replacement for a Screen Rate by:
|
| (i) |
the administrator of that Screen Rate (provided that the market or economic reality that such benchmark rate measures is the same as that measured by that
Screen Rate); or
|
| (ii) |
any Relevant Nominating Body,
|
| (b) |
in the opinion of the Majority Lenders and the Original Guarantor, generally accepted in the international or any relevant domestic syndicated loan markets
as the appropriate successor to a Screen Rate; or
|
| (c) |
in the opinion of the Majority Lenders and the Original Guarantor, an appropriate successor to a Screen Rate.
|
| (a) |
the methodology, formula or other means of determining that Screen Rate has, in the opinion of the Majority Lenders, and the Original Guarantor materially
changed;
|
| (A) |
the administrator of that Screen Rate or its supervisor publicly announces that such administrator is insolvent; or
|
| (B) |
information is published in any order, decree, notice, petition or filing, however described, of or filed with a court, tribunal, exchange, regulatory
authority or similar administrative, regulatory or judicial body which reasonably confirms that the administrator of that Screen Rate is insolvent,
|
| (ii) |
the administrator of that Screen Rate publicly announces that it has ceased or will cease, to provide that Screen Rate permanently or indefinitely and, at
that time, there is no successor administrator to continue to provide that Screen Rate;
|
| (iii) |
the supervisor of the administrator of that Screen Rate publicly announces that such Screen Rate has been or will be permanently or indefinitely
discontinued; or
|
| (iv) |
the administrator of that Screen Rate or its supervisor announces that that Screen Rate may no longer be used; or
|
| (c) |
the administrator of that Screen Rate determines that that Screen Rate should be calculated in accordance with its reduced submissions or other contingency
or fallback policies or arrangements and the circumstance(s) or event(s) leading to such determination are not (in the opinion of the Majority Lenders and the Borrowers) temporary; or
|
| (d) |
in the opinion of the Majority Lenders and the Borrowers, that Screen Rate is otherwise no longer appropriate for the purposes of calculating interest under
this Agreement.
|
| 37.3 |
Excluded Commitments
|
| 37.3.1 |
any Defaulting Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote
of Lenders under the terms of this Agreement within 5 Business Days of that request being made; or
|
| 37.3.2 |
any Lender which is not a Defaulting Lender fails to respond to such a request or such a vote within 5 Business Days of that request being made,
|
| (a) |
its Commitment(s) shall not be included for the purpose of calculating the Total Commitments when ascertaining whether any relevant percentage (including,
for the avoidance of doubt, unanimity) of Total Commitments has been obtained to approve that request; and
|
| (b) |
its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to
approve that request.
|
| 37.4 |
Replacement of Lender
|
| 37.4.1 |
If:
|
| (a) |
any Lender becomes a Non-Consenting Lender (as defined in Clause 37.4.4); or
|
| (b) |
a Borrower or any other Obligor becomes obliged to repay any amount in accordance with Clause 7.1 (Illegality) or to pay additional amounts pursuant to Clause 12.2 (Tax gross-up),
Clause 12.3 (Tax Indemnity) or Clause 13.1 (Increased costs) to any Lender,
|
| 37.4.2 |
The replacement of a Lender pursuant to this Clause 37.4 shall be subject to the following conditions:
|
| (a) |
the Borrowers shall have no right to replace the Agent or Security Agent;
|
| (b) |
neither the Agent nor the Lender shall have any obligation to the Borrowers to find a Replacement Lender;
|
| (c) |
in the event of a replacement of a Non-Consenting Lender such replacement must take place no later than 5 days after the date on which that Lender is deemed
a Non-Consenting Lender;
|
| (d) |
in no event shall the Lender replaced under this Clause 37.4 be required to pay or surrender to such Replacement Lender any of the fees received by such
Lender pursuant to the Finance Documents; and
|
| (e) |
the Lender shall only be obliged to transfer its rights and obligations pursuant to Clause 37.4.1 once it is satisfied that it has complied with all
necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to that transfer.
|
| 37.4.3 |
A Lender shall perform the checks described in Clause 37.4.2(e) as soon as reasonably practicable following delivery of a notice referred to in Clause
37.4.1 and shall notify the Agent and the Borrowers when it is satisfied that it has complied with those checks.
|
| 37.4.4 |
In the event that:
|
| (a) |
the Borrowers or the Agent (at the request of the Borrowers) have requested the Lenders to give a consent in relation to, or to agree to a waiver or
amendment of, any provisions of the Finance Documents;
|
| (b) |
the consent, waiver or amendment in question requires the approval of all the Lenders; and
|
| (c) |
Lenders whose Commitments aggregate more than 85 per cent of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more
than 85 per cent of the Total Commitments prior to that reduction) have consented or agreed to such waiver or amendment,
|
| 37.5 |
Disenfranchisement of Defaulting Lenders
|
| 37.5.1 |
For so long as a Defaulting Lender has any Commitment, in ascertaining:
|
| (a) |
the Majority Lenders; or
|
| (b) |
whether:
|
| (i) |
any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments; or
|
| (ii) |
the agreement of any specified group of Lenders,
|
| 37.5.2 |
For the purposes of this Clause 37.5, the Agent may assume that the following Lenders are Defaulting Lenders:
|
| (a) |
any Lender which has notified the Agent that it has become a Defaulting Lender;
|
| (b) |
any Lender in relation to which it is aware that any of the events or circumstances referred to in (a), (b) or (c) of the definition of "Defaulting Lender"
has occurred,
|
| 37.6 |
Replacement of a Defaulting Lender
|
| 37.6.1 |
The Borrowers may, at any time a Lender has become and continues to be a Defaulting Lender, by giving ten Business Days' prior written notice to the Agent
and such Lender, replace such Lender by requiring such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to Clause 25 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a "Replacement Lender") selected by the Borrowers which confirms its willingness to assume and does assume all the obligations, or all the relevant
obligations, of the transferring Lender in accordance with Clause 25 (Changes to the Lenders) for a purchase price in cash
payable at the time of transfer which is either:
|
| (a) |
in an amount equal to the outstanding principal amount of such Lender's participation in the outstanding Loan and all accrued interest (to the extent that
the Agent has not given a notification under Clause 25.9 (Pro rata interest settlement), Break Costs and other amounts payable in
relation thereto under the Finance Documents; or
|
| (b) |
in an amount agreed between that Defaulting Lender, the Replacement Lender and the Borrowers and which does not exceed the amount described in (a).
|
| 37.6.2 |
Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause 37.6 shall be subject to the following conditions:
|
| (a) |
the Borrowers shall have no right to replace the Agent or Security Agent;
|
| (b) |
neither the Agent nor the Defaulting Lender shall have any obligation to the Borrowers to find a Replacement Lender;
|
| (c) |
the transfer must take place no later than 10 Business Days after the notice referred to in Clause 37.6.1;
|
| (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; and
|
| (e) |
the Defaulting Lender shall only be obliged to transfer its rights and obligations pursuant to 37.6.1 once it is satisfied that it has complied with all
necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to that transfer to the Replacement Lender.
|
| 37.6.3 |
The Defaulting Lender shall perform the checks described in Clause 37.6.2(e) as soon as reasonably practicable following delivery of a notice referred to in
Clause 37.6.1 and shall notify the Agent and the Borrowers when it is satisfied that it has complied with those checks.
|
| 38. |
Confidentiality
|
| 38.1 |
Confidential Information Each Finance Party agrees
to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 38.2 (Disclosure
of Confidential Information) and Clause 38.3 (Disclosure to numbering service providers), and to ensure that all
Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.
|
| 38.2 |
Disclosure of Confidential Information Any Finance
Party may disclose:
|
| 38.2.1 |
to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and
Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this Clause 38.2.1 is informed in writing of its confidential
nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the
confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;
|
| 38.2.2 |
to any person:
|
| (a) |
to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance
Documents or which succeeds (or which may potentially succeed) it as Agent or Security Agent and, in each case, to any of that person's Affiliates, Related Funds, Representatives and professional advisers;
|
| (b) |
with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other
transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that person's Affiliates, Related Funds, Representatives and professional
advisers;
|
| (c) |
appointed by any Finance Party or by a person to whom Clause 38.2.2(a) or 38.2.2(b) applies to receive communications, notices, information or documents
delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under Clause 27.16.2 (Relationship
with the Lenders));
|
| (d) |
who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in Clause
38.2.2(a) or 38.2.2(b);
|
| (e) |
to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other
regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;
|
| (f) |
to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other
investigations, proceedings or disputes;
|
| (g) |
to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 25.8 (Security over Lenders' rights);
|
| (h) |
who is a Party; or
|
| (i) |
with the consent of the Borrowers;
|
| (i) |
in relation to Clauses 38.2.2(a), 38.2.2(b) and 38.2.2(c), the person to whom the Confidential Information is to be given has entered into a Confidentiality
Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional
|
| (ii) |
in relation to Clause 38.2.2(d), the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is
otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;
|
| (iii) |
in relation to Clauses 38.2.2(e), 38.2.2(f) and 38.2.2(g), the person to whom the Confidential Information is to be given is informed of its confidential
nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the
circumstances; and
|
| 38.2.3 |
to any person appointed by that Finance Party or by a person to whom Clause 38.2.2(a) or 38.2.2(b) applies to provide administration or settlement services
in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to
enable such service provider to provide any of the services referred to in this Clause 38.2.3 if the service provider to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking; and
|
| 38.2.4 |
to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to
carry out its normal rating activities in relation to the Finance Documents and/or the Obligors and/or the Group.
|
| 38.3 |
Disclosure to numbering service providers
|
| 38.3.1 |
Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification
numbering services in respect of this Agreement, the Loan and/or one or more Obligors the following information:
|
| (a) |
names of Obligors;
|
| (b) |
country of domicile of Obligors;
|
| (c) |
place of incorporation of Obligors;
|
| (d) |
date of this Agreement;
|
| (e) |
Clause 42 (Governing law);
|
| (f) |
the names of the Agent and the Arranger;
|
| (g) |
date of each amendment and restatement of this Agreement;
|
| (h) |
amount of Total Commitments;
|
| (i) |
currencies of the Loan;
|
| (j) |
type of Loan;
|
| (k) |
ranking of the Loan;
|
| (l) |
Termination Date;
|
| (m) |
changes to any of the information previously supplied pursuant to (a) to (l); and
|
| (n) |
such other information agreed between such Finance Party and that Obligor,
|
| 38.3.2 |
The Parties acknowledge and agree that each identification number assigned to this Agreement, the Loan and/or one or more Obligors by a numbering service
provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.
|
| 38.3.3 |
Each Borrower represents that none of the information set out in Clauses 38.3.1(a) to 38.3.1(n) is, nor will at any time be, unpublished price-sensitive
information.
|
| 38.3.4 |
The Agent shall notify the Borrowers and the other Finance Parties of:
|
| (a) |
the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Loan and/or one or more Obligors; and
|
| (b) |
the number or, as the case may be, numbers assigned to this Agreement, the Loan and/or one or more Obligors by such numbering service provider.
|
| 38.4 |
Entire agreement This Clause 38 constitutes the
entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding
Confidential Information.
|
| 38.5 |
Inside information Each of the Finance Parties
acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to
insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.
|
| 38.6 |
Notification of disclosure Each of the Finance
Parties agrees (to the extent permitted by law and regulation) to inform the Borrowers:
|
| 38.6.1 |
of the circumstances of any disclosure of Confidential Information made pursuant to Clause 38.2.2(e) (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that Clause during the ordinary course of its supervisory or
regulatory function; and
|
| 38.6.2 |
upon becoming aware that Confidential Information has been disclosed in breach of this Clause 38.
|
| 38.7 |
Continuing obligations The obligations in this
Clause 38 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of 12 months from the earlier of:
|
| 38.7.1 |
the date on which all amounts payable by the Obligors under or in connection with the Finance Documents have been paid in full and the Loan has been
cancelled or otherwise ceases to be available; and
|
| 38.7.2 |
the date on which such Finance Party otherwise ceases to be a Finance Party.
|
| 39. |
Disclosure of Lender Details by Agent
|
| 39.1 |
Supply of Lender details to Borrowers The Agent
shall provide to the Borrowers within seven Business Days of a request by the Borrowers (but no more frequently than once per calendar month) a list (which may be in electronic form) setting out the names of the Lenders as at the date
of that request, their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each Lender for any communication to be made or document to be
delivered under or in connection with the Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means to and by
each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Agent to that Lender under the Finance
Documents.
|
| 39.2 |
Supply of Lender details at Borrowers' direction
|
| 39.2.1 |
The Agent shall, at the request of the Borrowers, disclose the identity of the Lenders and the details of the Lenders' Commitments to any:
|
| (a) |
other Party or any other person if that disclosure is made to facilitate, in each case, a refinancing of the Financial Indebtedness arising under the
Finance Documents or a material waiver or amendment of any term of any Finance Document; and
|
| (b) |
Obligor or any other member of the Group.
|
| 39.2.2 |
Subject to Clause 39.2.3, the Borrowers shall procure that the recipient of information disclosed pursuant to Clause 39.2.1 shall keep such information
confidential and shall not disclose it to anyone and shall ensure that all such information
|
| 39.2.3 |
The recipient may disclose such information to any of its officers, directors, employees, professional advisers, auditors and partners as it shall consider
appropriate if any such person is informed in writing of its confidential nature, except that there shall be no such requirement to so inform if that person is subject to professional obligations to maintain the confidentiality of the
information or is otherwise bound by duties of confidentiality in relation to the information.
|
| 39.3 |
Supply of Lender details to other Lenders
|
| 39.3.1 |
If a Lender (a "Disclosing Lender") indicates to the
Agent that the Agent may do so, the Agent shall disclose that Lender's name and Commitment to any other Lender that is, or becomes, a Disclosing Lender.
|
| 39.3.2 |
The Agent shall, if so directed by the Requisite Lenders, request each Lender to indicate to it whether it is a Disclosing Lender.
|
| 39.4 |
Lender enquiry If any Lender believes that any
entity is, or may be, a Lender and:
|
| 39.4.1 |
that entity ceases to have an Investment Grade Rating; or
|
| 39.4.2 |
an Insolvency Event occurs in relation to that entity,
|
| 39.5 |
Lender details definitions In this Clause 39:
|
| 40. |
Counterparts
|
| 41. |
Joint and Several Liability
|
| 41.1 |
Nature of liability The representations,
warranties, covenants, obligations and undertakings of the Borrowers contained in this Agreement shall be joint and several so that each Borrower shall be jointly and severally liable with all the Borrowers for
|
| 41.1.1 |
any forbearance (whether as to payment or otherwise) or any time or other indulgence granted to any other Borrower or any other Obligor under or in
connection with any Finance Document;
|
| 41.1.2 |
any amendment, variation, novation or replacement of any other Finance Document;
|
| 41.1.3 |
any failure of any Finance Document to be legal valid binding and enforceable in relation to any other Borrower or any other Obligor for any reason;
|
| 41.1.4 |
the winding-up or dissolution of any other Borrower or any other Obligor;
|
| 41.1.5 |
the release (whether in whole or in part) of, or the entering into of any compromise or composition with, any other Borrower or any other Obligor; or
|
| 41.1.6 |
any other act, omission, thing or circumstance which would or might, but for this provision, operate to discharge, impair or otherwise affect such
liability.
|
| 41.2 |
No rights as surety Until the Indebtedness has
been unconditionally and irrevocably paid and discharged in full, each Borrower agrees that it shall not, by virtue of any payment made under this Agreement on account of the Indebtedness or by virtue of any enforcement by a Finance
Party of its rights under this Agreement or by virtue of any relationship between, or transaction involving, the relevant Borrower and any other Borrower or any other Obligor:
|
| 41.2.1 |
exercise any rights of subrogation in relation to any rights, security or moneys held or received or receivable by a Finance Party or any other person; or
|
| 41.2.2 |
exercise any right of contribution from any other Borrower or any other Obligor under any Finance Document; or
|
| 41.2.3 |
exercise any right of set-off or counterclaim against any other Borrower or any other Obligor; or
|
| 41.2.4 |
receive, claim or have the benefit of any payment, distribution, security or indemnity from any other Borrower or any other Obligor; or
|
| 41.2.5 |
unless so directed by the Agent (when the relevant Borrower will prove in accordance with such directions), claim as a creditor of any other Borrower or any
other Obligor in competition with any Finance Party
|
| Section 12 |
Governing Law and Enforcement
|
| 42. |
Governing 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 (including a dispute relating to
the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a "Dispute"). Each Party agrees that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.
|
| 43.1.2 |
Notwithstanding Clause 43.1.1, 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, any Finance Party may take concurrent proceedings in any number of jurisdictions.
|
| 43.2 |
Service of process
|
| 43.2.1 |
Without prejudice to any other mode of service allowed under any relevant law, each Borrower and each Guarantor:
|
| (a) |
irrevocably appoints Ince Process Agents Limited of Aldgate Tower, 2 Leman Street, London E18QN, England as its agent for service of process in relation to
any proceedings before the English courts in connection with any Finance Document; and
|
| (b) |
agrees that failure by a process agent to notify that Borrower or that Guarantor (as the case may be) of the process will not invalidate the proceedings
concerned.
|
| 43.2.2 |
If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process or terminates its appointment as
agent for service of process, the relevant Borrower or relevant Guarantor (as the case may be) must immediately (and in any event within five 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.
|
|
Name of Original Lender
|
Commitment
|
Treaty Passport scheme reference number and jurisdiction of residence (if applicable)
|
|
DNB (UK) Limited
|
100%
|
|
| 1 |
Obligors
|
| (a) |
Constitutional documents Copies of the
constitutional documents of each Obligor together with such other evidence as the Agent may reasonably require that each Obligor is duly incorporated in its country of incorporation and remains in existence with power to enter
into, and perform its obligations under, the Relevant Documents to which it is or is to become a party.
|
| (b) |
Certificates of good standing A certificate
of good standing in respect of each Obligor (if such a certificate can be obtained).
|
| (c) |
Board resolutions A copy of a resolution of
the board of directors of each Obligor (other than the Original Guarantor) and a copy of a resolution of the executive committee of the board of directors of the Original Guarantor:
|
| (i) |
approving the terms of, and the transactions contemplated by, the Relevant Documents to which it is a party and resolving that it execute those
Relevant Documents; and
|
| (ii) |
authorising a specified person or persons to execute those Relevant Documents (and all documents and notices to be signed and/or dispatched under
those documents) on its behalf.
|
| (d) |
Specimen signatures or Copy passports A
specimen of the signature or copy of the passport (as the Agent may require) of each person actually executing any of the Relevant Documents pursuant to the resolutions referred to in (c).
|
| (e) |
Shareholder resolutions A copy of a
resolution signed by all the holders of the issued shares in each Obligor (other than the Original Guarantor), approving the terms of, and the transactions contemplated by, the Relevant Documents to which that Obligor is a
party.
|
| (f) |
Officer's certificates An original
certificate of a duly authorised officer of each Obligor:
|
| (i) |
certifying that each copy document relating to it specified in this Part I of Schedule 2 is correct, complete and in full force and effect;
|
| (ii) |
setting out the names of (a) the directors and officers of that Obligor and (b) the shareholders of that Obligor (other than the Original Guarantor)
and the proportion of shares held by each shareholder; and
|
| (iii) |
confirming that borrowing or guaranteeing or securing, as appropriate, the Loan would not cause any borrowing, guarantee, security or similar limit
binding on that Obligor to be exceeded.
|
| (g) |
Evidence of registration Where such
registration is required or permitted under the laws of the relevant jurisdiction, evidence that the names of the directors, officers and shareholders of each Obligor are duly registered in the companies registry or other
registry in the country of incorporation of that Obligor.
|
| (h) |
Powers of attorney The original notarially
attested and legalised power of attorney of each of the Obligors under which the Relevant Documents to which it is or is to become a party are to be executed or transactions undertaken by that Obligor.
|
| 2 |
Security and related documents
|
| (a) |
Vessel documents Photocopies, certified as
true, accurate and complete by a director or the secretary or the legal advisers of the Borrower, of:
|
| (i) |
any charterparty or other contract of employment of the Vessel which will be in force on the Utilisation Date including, without limitation, any
Charter
|
| (ii) |
the on hire certificate pursuant to the Charter (if the Charter is a time charter) or the protocol of delivery and acceptance evidencing the
unconditional physical delivery of the Vessel by the Borrower to a Charterer pursuant to a Charter (if the Charter is a bareboat charter);
|
| (iii) |
the Management Agreements;
|
| (iv) |
the Vessel's current Safety Construction, Safety Equipment, Safety Radio and Load Line Certificates;
|
| (v) |
evidence of the Vessel's current Certificate of Financial Responsibility issued pursuant to the United States Oil Pollution Act 1990;
|
| (vi) |
the Vessel's current SMC;
|
| (vii) |
the ISM Company's current DOC;
|
| (viii) |
the Vessel's current ISSC;
|
| (ix) |
the Vessel's current IAPPC;
|
| (x) |
the Vessel's current Tonnage Certificate;
|
| (b) |
Evidence of Borrower's title Evidence that on
the Utilisation Date (i) the Vessel will be permanently registered under the flag of the Hellenic Republic
|
| (c) |
Evidence of insurance Evidence that the
Vessel is insured in the manner required by the Security Documents and that letters of undertaking will be issued in the manner required by the Security Documents, together with (if required by the Agent) the written approval of
the Insurances by an insurance adviser appointed by the Agent.
|
| (d) |
Confirmation of class A Certificate of
Confirmation of Class for hull and machinery confirming the Vessel is classed with the highest class applicable to vessels of her type with Lloyd's Register or such other classification society as may be acceptable to the Agent.
|
| (e) |
Valuation A valuation of the Vessel addressed
to the Agent from a broker acceptable to the Agent certifying the Market Value for the Vessel, acceptable to the Agent and in compliance with Clause 18 (Additional security) and dated not earlier that 30 Business Days prior to the proposed Utilisation Date.
|
| (f) |
Security Documents The Mortgage and the
Assignments in respect of the Vessel, each Guarantee, the Account Security Deed, the Share Securities and any other Credit Support Documents, together with all other documents required by any of them, including, without
limitation, (i) all notices of assignment and/or charge and evidence that those notices will be duly acknowledged by the recipients and (ii) (pursuant to the Share Securities) all share certificates, certified copy share
registers or registers of members, transfer forms, proxy forms, letters of resignation and letters of undertaking.
|
| (g) |
Mandates Such duly signed forms of mandate,
and/or other evidence of the opening of the Earnings Accounts, as the Security Agent may require.
|
| (h) |
No disputes The written confirmation of the
Borrowers that there is no dispute under any of the Relevant Documents as between the parties to any such document.
|
| (i) |
Account Holder's confirmation The written
confirmation of the Account Holder that the Earnings Accounts have been opened with the Account Holder and to its actual knowledge are free from Encumbrances other than as created by or pursuant to the Security Documents and
rights of set off in favour of the Account Holder as account holder.
|
| (j) |
Master Agreement The Master Agreement.
|
| (k) |
Other Relevant Documents Copies of each of
the Relevant Documents not otherwise comprised in the documents listed in this Part I of Schedule 2.
|
| 3 |
Legal opinions
|
| (a) |
a legal opinion of Stephenson Harwood LLP, legal advisers to the Agent as to English law substantially in the form distributed to the Lenders prior to
signing this Agreement;
|
| (b) |
a legal opinion of the following legal advisers to the Agent:
|
| (i) |
Ince & Co as to Marshall Islands law;
|
| (ii) |
Stephenson Harwood LLP as to Greek law; and
|
| (iii) |
Patton Moreno & ASVAT as to Panamanian law.
|
| 4 |
Other documents and evidence
|
| (a) |
Utilisation Request A duly completed
Utilisation Request.
|
| (b) |
Process agent Evidence that any process agent
referred to in Clause 43.2 (Service of process) and any process agent appointed under any other Finance Document has
accepted its appointment.
|
| (c) |
Other Authorisations 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 Borrowers accordingly) in connection with the entry into and performance of the transactions
contemplated by any Relevant Document or for the validity and enforceability of any Relevant Document.
|
| (d) |
Financial statements A copy of each of the
Original Financial Statements.
|
| (e) |
Fees The Fee Letter and evidence that the
fees, costs and expenses then due from the Borrowers under Clause 11 (Fees) and Clause 16 (Costs and Expenses) or, if applicable, any withholding tax have been paid or will be paid by the relevant Utilisation Date.
|
| (f) |
"Know your customer" documents Such
documentation and other evidence as is reasonably requested by the Agent (including specimen signatures) in order for the Lenders to comply with all necessary "know your customer" or similar identification procedures in relation
to the transactions contemplated in the Finance Documents, and each Obligors signatories, directors and ultimate beneficial owners.
|
| (g) |
Group Structure Chart A chart showing the
structure of the Group up to the level of the Original Guarantor.
|
| (h) |
Ownership Side Letter The Ownership Side
Letter.
|
| 1 |
Evidence of Borrower's title Certificate of
ownership and encumbrance (or equivalent) issued by the Registrar of Ships (or equivalent official) of the flag of the Hellenic Republic confirming that (a) the Vessel is permanently registered under that flag in the ownership
of the Borrower, (b) the Mortgage has been registered with first priority against the Vessel and (c) there are no further Encumbrances registered against the Vessel.
|
| 2 |
Letters of undertaking Letters of undertaking
in respect of the Insurances as required by the Security Documents together with copies of the relevant policies or cover notes or entry certificates duly endorsed with the interest of the Finance Parties.
|
| 3 |
Acknowledgements of notices Acknowledgements
of all notices of assignment and/or charge given pursuant to any Security Documents received by the Agent pursuant to Part I of this Schedule 2.
|
| 4 |
Legal opinions Such of the legal opinions
specified in Part I of this Schedule 2 as have not already been provided to the Agent.
|
| 5 |
Companies Act registrations If applicable,
evidence that the prescribed particulars of any Security Documents received by the Agent pursuant to Part I of this Schedule 2 have been delivered to the relevant Registry of Companies/Corporations within the statutory time
limit.
|
| 6 |
Master's receipt The master's receipt for the
Mortgage.
|
| From: |
Erikub Shipping Company Inc.
|
| To: |
DNB Bank ASA
|
| 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 the Vessel Loan in respect of the Vessel specified below on the following terms:
|
| Proposed Utilisation Date: |
[ ] (or, if that is not a Business Day, the next Business Day)
|
| Currency of Vessel Loan: |
dollars |
| Amount: |
[ ] |
| Interest Period: |
[ ] |
| Vessel: |
[ ] |
| 3 |
We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.
|
| 4 |
The proceeds of the Vessel Loan should be paid as follows:
|
| 5 |
This Utilisation Request is irrevocable.
|
| From: |
[The Existing Lender] (the "Existing Lender") and [The New
Lender] (the "New Lender")
|
| 1 |
We refer to the Loan Agreement. This agreement (the "Agreement")
shall take effect as a Transfer Certificate for the purposes of the Loan Agreement. Terms defined in the Loan Agreement have the same meaning in this Agreement unless given a different meaning in this Agreement.
|
| 2 |
We refer to Clause 25.5 (Procedure for transfer)
of the Loan Agreement:
|
| (a) |
The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation and in accordance with Clause 25.5 (Procedure for transfer) all of the Existing Lender's rights and obligations under the Loan Agreement and the other Finance
Documents which relate to that portion of the Existing Lender's Commitment(s) and participations in the Loan under the Loan Agreement as specified in the Schedule.
|
| (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 33.2 (Addresses) of the Loan Agreement are set out in the Schedule.
|
| 3 |
The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in Clause 25.4.1(c) (Limitation of responsibility of Existing Lenders) of the Loan Agreement.
|
| 4 |
The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:
|
| (d) |
[a Qualifying Lender other than a Treaty Lender;]
|
| (e) |
[a Treaty Lender;]
|
| (f) |
[not a Qualifying Lender].
|
| [5] |
[The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is
either:
|
| (g) |
a company resident in the United Kingdom for United Kingdom tax purposes;
|
| (h) |
a partnership each member of which is:
|
| (iv) |
a company so resident in the United Kingdom; or
|
| (v) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or
|
| (i) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that
company.]
|
| [5] |
[The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [ ]) and is tax
resident in [ ], so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax, and requests that the Agent notify the Borrowers that it wishes that scheme to apply
to the Agreement.]
|
| [5/6] |
This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single
copy of this Agreement.
|
| [6/7] |
This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.
|
| [7/8] |
This Agreement has been entered into on the date stated at the beginning of this Agreement.
|
| Note: |
The execution of this Transfer Certificate may not
transfer a proportionate share of the Existing Lender's interest in any Encumbrance created or expressed to be created or evidenced by the Security Documents in all jurisdictions. It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in any
jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.
|
|
[Existing Lender]
|
[New Lender]
|
|
By:
|
By:
|
| To: |
[ ] as Agent and [ ] and [ ] as Borrowers, for and on behalf of each Obligor
|
| From: |
[the Existing Lender] (the "Existing Lender") and [the New
Lender] (the "New Lender")
|
| 1 |
We refer to the Loan Agreement. This is an Assignment Agreement. This agreement (the "Agreement") shall take effect as an Assignment Agreement for the purpose of the Loan Agreement. Terms defined in the Loan Agreement have the same meaning in this Agreement unless given
a different meaning in this Agreement.
|
| 2 |
We refer to Clause 25.6 (Procedure for assignment)
of the Loan Agreement:
|
| (a) |
The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Loan Agreement, the other Finance Documents
and in respect of any Encumbrance created or expressed to be created or evidenced by the Security Documents which correspond to that portion of the Existing Lender's Commitment(s) and participations in the Loan under the Loan
Agreement as specified in the Schedule.
|
| (b) |
The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender's
Commitment(s) and participations in the Loan under the Loan Agreement specified in the Schedule.
|
| (c) |
The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph
(b).
|
| 3 |
The proposed Transfer Date is [ ].
|
| 4 |
On the Transfer Date the New Lender becomes:
|
| (a) |
Party to the relevant Finance Documents as a Lender
|
| 5 |
The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 33.2 (Addresses) of the Loan Agreement are set out in the Schedule.
|
| 6 |
The New Lender expressly acknowledges the limitations on the Existing Lender's obligations set out in Clause 25.4.3 (Limitation of responsibility of Existing Lenders) of the Loan Agreement.
|
| 7 |
The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:
|
| (a) |
[a Qualifying Lender (other than a Treaty Lender);]
|
| (b) |
[a Treaty Lender;]
|
| (c) |
[not a Qualifying Lender].
|
| 8 |
[The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is
either:
|
| (a) |
a company resident in the United Kingdom for United Kingdom tax purposes;
|
| (b) |
a partnership each member of which is:
|
| (i) |
a company so resident in the United Kingdom; or
|
| (ii) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or
|
| (c) |
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into
account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]
|
| 9 |
[The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [ ]) and is tax resident in [ ]*, so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax and hereby notifies the Borrowers that
it wishes that scheme to apply to the Loan Agreement.]**
|
| [9/10] |
This Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 25.7 (Copy of Transfer Certificate or Assignment Agreement to Borrowers), to the Borrowers (on behalf of each Obligor) of the
assignment referred to in this Agreement.
|
| [10/11] |
This Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single
copy of this Agreement.
|
| [11/12] |
This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.
|
| [12/13] |
This Agreement has been entered into on the date stated at the beginning of this Agreement.
|
| Note: |
The execution of this Assignment Agreement may not transfer a proportionate share of the Existing Lender's interest in any
Encumbrance created or expressed to be created or evidenced by the Security Documents in all jurisdictions. It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required
to perfect a transfer of such a share in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.
|
|
[Existing Lender]
|
[New Lender]
|
|
By:
|
By:
|
| To: |
[ ] as Agent and [ ] as Security Agent for itself and each of the other Finance Parties
|
| 1 |
We refer to the Agreement. This deed (the "Accession
Deed") shall take effect as an Accession Deed for the purposes of the Agreement. Terms defined in the Agreement have the same meaning in paragraphs 1-3 of this Accession Deed unless given a different meaning in this
Accession Deed.
|
| 2 |
[Affiliate of a Borrower] agrees to become an
Additional Guarantor and to be bound by the terms of the Agreement and the other Finance Documents as an Additional Guarantor pursuant to Clause 26.2 (Additional Guarantors) of the Agreement. Affiliate of a Borrower is a company duly
incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number
[ ].
|
| 3 |
Affiliate of a Borrower's administrative
details for the purposes of the Agreement are as follows:
|
|
[Executed as a Deed
|
)
|
|
By: [Affiliate of a
Borrower]
|
)
|
|
)
|
|
_____________________________
|
Director
|
|
_____________________________
|
Director/Secretary]
|
|
[Executed as a Deed
By: [Affiliate of a
Borrower]
|
|
|
_____________________________
|
Signature of Director
|
|
_____________________________
in the presence of
|
Name of Director
|
|
_____________________________
|
Signature of witness
|
|
_____________________________
|
Name of witness
|
|
_____________________________
|
Address of witness
|
|
_____________________________
|
|
|
_____________________________
|
|
|
_____________________________
|
|
|
_____________________________
|
Occupation of witness]
|
|
_____________________________
|
[Borrowers][Original Guarantor]
|
| 1 |
We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have the same meaning when used in this Compliance
Certificate unless given a different meaning in this Compliance Certificate.
|
| 2 |
We confirm that:
|
| 2.1 |
we maintain Cash of not less than the higher of (i) $500,000 multiplied by the number of the Fleet Vessels and (ii) $10,000,000; and
|
| 2.2 |
the Market Value Adjusted Net Worth in an amount not less than $150,000,000; and
|
| 2.3 |
the Market Value Adjusted Net Worth in excess of 25% of the Total Assets;
|
| 2.4 |
each Borrower maintains in the relevant Earnings Account a credit balance of not less than two hundred thousand Dollars ($200,000).
|
| 3 |
[We confirm that no Default is continuing.]*
|
|
Signed:
|
………………………………………………
|
|
Chief Financial Officer
|
|
|
of
|
|
|
Diana Shipping Inc.
|
|
Erikub Shipping Company Inc.
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
)
|
|||
|
Address: c/o Diana Shipping Services S.A.
|
)
|
||
|
Pendelis 16, 175 64 Palaio Faliro, Athens,
|
)
|
||
|
Greece
|
)
|
||
|
Fax no.: +30 210 9470101
|
)
|
||
|
Department/Officer: Mr Andreas Michalopoulos
|
)
|
||
|
Wotho Shipping Company Inc.
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
)
|
|||
|
Address: c/o Diana Shipping Services S.A.
|
)
|
||
|
Pendelis 16, 175 64 Palaio Faliro, Athens,
|
)
|
||
|
Greece
|
)
|
||
|
Fax no.: +30 210 9470101
|
)
|
||
|
Department/Officer: Mr Andreas Michalopoulos
|
)
|
||
|
The Original Guarantor
|
|||
|
Diana Shipping Inc.
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
)
|
|||
|
Address: c/o Diana Shipping Services S.A.
|
)
|
||
|
Pendelis 16, 175 64 Palaio Faliro, Athens,
|
)
|
||
|
Greece
|
)
|
||
|
Fax no.: +30 210 9470101
|
)
|
||
|
Department/Officer: Mr Andreas Michalopoulos
|
)
|
||
|
The Arranger
|
|||
|
DNB Bank ASA
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
)
|
|||
|
Address: 8th floor, The Walbrook Building
|
)
|
||
|
25 Walbrook, London EC4N 8AF
|
)
|
||
|
England
|
)
|
||
|
Fax no.: +44 207 283 5935
|
)
|
||
|
Department/Officer: Shipping Offshore
|
)
|
||
|
The Agent
|
|||
|
DNB Bank ASA
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
)
|
|||
|
Address: 8th floor, The Walbrook Building
|
)
|
||
|
25 Walbrook, London EC4N 8AF
|
)
|
||
|
England
|
)
|
||
|
Fax no.: +44 207 283 5935
|
)
|
||
|
Department/Officer: Shipping Offshore
|
)
|
||
|
The Security Agent
|
|||
|
DNB Bank ASA
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
)
|
|||
|
Address: 8th floor, The Walbrook Building
|
)
|
||
|
25 Walbrook, London EC4N 8AF
|
)
|
||
|
England
|
)
|
||
|
Fax no.: +44 207 283 5935
|
)
|
||
|
Department/Officer: Shipping Offshore
|
)
|
||
|
The Original Lenders
|
|||
|
DNB (UK) Limited
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
The Swap Provider
|
|||
|
DNB Bank ASA
|
)
|
||
|
)
|
|||
|
By:
|
)
|
||
|
)
|
|||
|
Address: 8th floor, The Walbrook Building
|
)
|
||
|
25 Walbrook, London EC4N 8AF
|
)
|
||
|
England
|
)
|
||
|
Fax no.: +44 207 283 5935
|
)
|
||
|
Department/Officer: Shipping Offshore
|
)
|
||