Golden Ocean Group Limited
|
(Name of Issuer)
|
Common Shares, par value $0.05 per share
|
(Title of Class of Securities)
|
G39637205
|
(CUSIP Number)
|
Hemen Holding Limited
c/o Seatankers Management Co Ltd
P.O. Box 53562
CY-3399 Limassol
Cyprus
Attn: Spyros Episkopou
+1 (357) 25-858-300
with a copy to:
Gary J. Wolfe, Esq.
Seward & Kissel LLP
One Battery Park Plaza
New York, New York 10004
(212) 574-1200
|
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
|
November 20, 2017
|
(Date of Event Which Requires Filing of this Statement)
|
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the following box [_].
|
The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
|
*The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
Hemen Holding Limited
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
WC, OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Cyprus
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*52,008,241
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*52,008,241
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*52,008,241
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
35.7%
|
14.
|
TYPE OF REPORTING PERSON
|
|
CO
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
Frontline Ltd.
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Bermuda
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*1,270,657
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*1,270,657
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*1,270,657
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
0.9%
|
14.
|
TYPE OF REPORTING PERSON
|
|
CO
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
Greenwich Holdings Limited
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Cyprus
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*52,008,241
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*52,008,241
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*52,008,241
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
35.7%
|
14.
|
TYPE OF REPORTING PERSON
|
|
CO
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
C.K. Limited
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Cyprus
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*52,008,241
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*52,008,241
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*52,008,241
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
35.7%
|
14.
|
TYPE OF REPORTING PERSON
|
|
CO
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
Farahead Investments Inc.
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Liberia
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*3,500,000
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*3,500,000
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*3,500,000
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
2.4%
|
14.
|
TYPE OF REPORTING PERSON
|
|
CO
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
Greenfields Holding Inc.
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Liberia
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*3,500,000
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*3,500,000
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*3,500,000
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
2.4%
|
14.
|
TYPE OF REPORTING PERSON
|
|
CO
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
GSA Limited
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Jersey
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*3,500,000
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*3,500,000
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*3,500,000
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
2.4%
|
14.
|
TYPE OF REPORTING PERSON
|
|
CO
|
CUSIP No.
|
G39637205
|
1.
|
NAME OF REPORTING PERSONS
|
|
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
|
||
John Fredriksen*
|
2.
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
|
|
(a) [_]
|
||
(b) [_]
|
3.
|
SEC USE ONLY
|
4.
|
SOURCE OF FUNDS
|
|
OO
|
5.
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
|
[_]
|
6.
|
CITIZENSHIP OR PLACE OF ORGANIZATION
|
|
Cyprus
|
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
|
||
7.
|
SOLE VOTING POWER
|
|
0
|
8.
|
SHARED VOTING POWER
|
|
*52,008,241
|
9.
|
SOLE DISPOSITIVE POWER
|
|
0
|
10.
|
SHARED DISPOSITIVE POWER
|
|
*52,008,241
|
11.
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
|
*52,008,241
|
12.
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
|
|
[_]
|
13.
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
|
35.7%
|
14.
|
TYPE OF REPORTING PERSON
|
|
IN
|
CUSIP No.
|
G39637205
|
January 30, 2018
|
||
(Date)
|
||
Hemen Holding Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
Frontline Ltd.
|
||
By: /s/ Inger M. Klemp
|
||
Name: Inger M. Klemp
Title: Principal Financial Officer
|
||
Greenwich Holdings Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
C.K. Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
Farahead Investments Inc.
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
Greenfields Holding Inc.
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
GSA Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
/s/ John Fredriksen*
|
||
(Signature)
|
||
John Fredriksen*
(Name)
|
January 30, 2018
|
||
(Date)
|
||
Hemen Holding Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
Frontline Ltd.
|
||
By: /s/ Inger M. Klemp
|
||
Name: Inger M. Klemp
Title: Principal Financial Officer
|
||
Greenwich Holdings Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
C.K. Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
Farahead Investments Inc.
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
Greenfields Holding Inc.
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
GSA Limited
|
||
By: /s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
Title: Director
|
||
/s/ John Fredriksen
|
||
(Signature)
|
||
John Fredriksen
(Name)
|
1. |
The Transaction
|
2. |
Settlement of the Purchase Price
|
● |
50% of the Purchase Price shall be settled by Sterna Finance Ltd. or another affiliate of Hemen providing a non-amortizing loan with maturity three years after completion of the Transaction with an interest rate of LIBOR + 3.0% (the "Loan"). Interest on the loan will be repaid quarterly in arrears. The loan will be guaranteed by Golden Ocean Holdings Limited on behalf of the Buyers.
|
● |
GOGL will on or about the date hereof carry out an equity offering in the vicinity of USD 100 million (the "Equity Offering"). A portion of the Purchase Price shall be settled in-kind, by GOGL issuing a number of shares in the Equity Offering to Hemen so that Hemen and affiliated company Farahead Investments Inc. retains an aggregate ownership share of 34.2% in GOGL upon completion of the Equity Offering (the "In-kind Consideration Shares"). The value of the In-kind Consideration Shares shall equal the purchase price per share set in the part of the Equity Offering that is placed with investors in the market.
|
● |
The remaining part of the Purchase Price shall be settled in cash.
|
3. |
Completion of Transaction
|
4. |
Transaction Documents
|
5. |
Binding agreement
|
6. |
Governing law and disputes
|
For and on behalf of
Golden Ocean Group Limited
|
For and on behalf of
Hemen Holding Limited
|
|
/s/ Birgitte R. Vartdal
|
/s/ Eirini Santhi Theocharous
|
|
Name: Birgitte R. Vartdal
|
Name: Eirini Santhi Theocharous
|
|
Attorney-in-fact
For and on behalf of
Dedalos Shipowning Inc.
|
For and on behalf of
Ikaros Shipowning Inc.
|
|
/s/ Spyros Episkopou
|
/s/ Spyros Episkopou
|
|
Name: Spyros Episkopou
|
Name: Spyros Episkopou
|
|
Director
|
Director
|
|
For and on behalf of
Sterna Finance Ltd
|
||
/s/ Georgina E. Sousa
|
||
Name: Georgina E. Sousa
|
Norwegian Shipbrokers' Association's
|
|
Memorandum of Agreement for sale and
|
|
purchase of ships. Adopted by BIMCO in 1956.
|
|
Code-name
|
|
SALEFORM 2012
|
|
Revised 1966, 1983 and 1986/87, 1993 and 2012
|
Year of Build: 2016
|
Builder/Yard: Daehan Shipbuilding Co. Ltd., Jeollanam-Do, South Korea
|
|
Flag: Marshall Islands
|
Place of Registration: Majuro
|
GT/NT: 94091/59482
|
1.
|
Purchase Price
|
The Purchase Price is set out in Clause 19 (Payment)
|
|
|
|
|
|
|
|
|
|
||
|
||
3.
|
Payment
|
|
On delivery of the Vessel, but not later than three (3) Banking Days after the date that Notice of Readiness has been given in accordance with Clause 5 (Time and place of delivery and notices):
|
||
(i)
|
|
|
(ii) |
|
|
4.
|
Inspection
|
|
(a)* The Buyers have inspected and accepted the Vessel's classification records
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
*4(a) and 4(b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 4(a) shall apply.
|
5.
|
Time and place of delivery and notices
|
(a) The Vessel shall be delivered and taken over safely afloat at a safe and accessible berth or anchorage at
|
|
Notice of Readiness shall not be tendered before: 1 November 2017 (date)
|
|
Cancelling Date (see Clauses 5(c), 6 (a)(i), 6 (a) (iii) and 14): 16 February 2018
|
|
|
|
When the Vessel is at the place of delivery and physically ready for delivery in accordance with this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.
|
|
(c) If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, the Vessel will not be ready for delivery by the Cancelling Date they may notify the Buyers in writing stating the date when they anticipate that the Vessel will be ready for delivery and proposing a new Cancelling Date. Upon receipt of such notification the Buyers shall have the option of either cancelling this Agreement in accordance with Clause 14 (Sellers' Default) within three (3) Banking Days of receipt of the notice or of accepting the new date as the new Cancelling Date.
|
If the Buyers have not declared their option within three (3) Banking Days of receipt of the Sellers' notification or if the Buyers accept the new date, the date proposed in the Sellers' notification shall be deemed to be the new Cancelling Date and shall be substituted for the Cancelling Date stipulated in line 79.
If this Agreement is maintained with the new Cancelling Date all other terms and conditions hereof including those contained in Clauses 5(b) and 5(d) shall remain unaltered and in full force and effect.
(d) Cancellation, failure to cancel or acceptance of the new Cancelling Date shall be entirely without prejudice to any claim for damages the Buyers may have under Clause 14 (Sellers' Default) for the Vessel not being ready by the original Cancelling Date.
(e) Should the Vessel become an actual, constructive or compromised total loss before delivery
|
||
6.
|
Divers Inspection / Drydocking
|
(i)
|
The Buyers shall have the option at their cost and expense to arrange for an underwater inspection by a diver approved by the Classification Society prior to the delivery of the Vessel. Such option shall be declared latest nine (9) days prior to the Vessel's intended date of readiness for delivery as notified by the Sellers pursuant to Clause 5(b) of this Agreement. The Sellers shall at their cost and expense make the Vessel available for such inspection. This inspection shall be carried out without undue delay and in the presence of a Classification Society surveyor arranged for by the Sellers and paid for by the Buyers. The Buyers' representative(s) shall have the right to be present at the diver's inspection as observer(s) only without interfering with the work or decisions of the Classification Society surveyor. The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of the Classification Society. If the conditions at the place of delivery are unsuitable for such inspection, the Sellers shall at their cost and expense make the Vessel available at a suitable alternative place near to the delivery port, in which event the Cancelling Date shall be extended by the additional time required for such positioning and the subsequent re-positioning. The Sellers may not tender Notice of Readiness prior to completion of the underwater inspection.
|
(ii)
|
If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken, damaged or defective so as to affect the Vessel's class, then (1) unless repairs can be carried out afloat to the satisfaction of the Classification Society, the Sellers shall arrange for the Vessel to be drydocked at their expense for inspection by the Classification Society of the Vessel's underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Society's rules (2) such defects shall be made good by the Sellers at their cost and expense to the satisfaction of the Classification Society without condition/recommendation** and (3) the Sellers shall pay for the underwater inspection and the Classification Society's attendance.
|
|
Notwithstanding anything to the contrary in this Agreement, if the Classification Society do not require the aforementioned defects to be rectified before the next class drydocking survey, the Sellers shall be entitled to deliver the Vessel with these defects against a deduction from the Purchase Price of the estimated direct cost (of labour and materials) of carrying out the repairs to the satisfaction of the Classification Society, whereafter the Buyers shall have no further rights whatsoever in respect of the defects and/or repairs. The estimated direct cost of the repairs shall be the average of quotes for the repair work obtained from two reputable independent shipyards at or in the vicinity of the port of delivery, one to be obtained by each of the Parties within two (2) Banking Days from the date of the imposition of the condition/recommendation, unless the Parties agree otherwise. Should either of the Parties fail to obtain such a quote within the stipulated time then the quote duly obtained by the other Party shall be the sole basis for the estimate of the direct repair costs. The Sellers may not tender Notice of Readiness prior to such estimate having been established.
|
(iii)
|
If the Vessel is to be drydocked pursuant to Clause 6(a)(ii) and no suitable dry docking facilities are available at the port of delivery, the Sellers shall take the Vessel to a port where suitable drydocking facilities are available, whether within or outside the delivery range as per Clause 5(a). Once drydocking has taken place the Sellers shall deliver the Vessel at a port within the delivery range as per Clause 5(a) which shall, for the purpose of this Clause, become the new port of delivery. In such event the Cancelling Date shall be extended by the additional time required for the drydocking and extra steaming, but
|
limited to a maximum of fourteen (14) days.
|
(i)
|
The Classification Society may require survey of the tailshaft system, the extent of the survey being to the satisfaction of the Classification surveyor. If such survey is not required by the Classification Society, the Buyers shall have the option to require the tailshaft to be drawn and surveyed by the Classification Society, the extent of the survey being in accordance with the Classification Society's rules for tailshaft survey and consistent with the current stage of the Vessel's survey cycle. The Buyers shall declare whether they require the tailshaft to be drawn and surveyed not later than by the completion of the inspection by the Classification Society. The drawing and refitting of the tailshaft shall be arranged by the Sellers. Should any parts of the tailshaft system be condemned or found defective so as to affect the Vessel's class, those parts shall be renewed or made good at the sellers' cost and expense to the satisfaction of Classification Society without condition/recommendation**.
|
(ii)
|
The costs and expenses relating to the survey of the tailshaft system shall be borne by the Buyers unless the Classification Society requires such survey to be carried out or if parts of the system are condemned or found defective or broken so as to affect the Vessel's class, in which case the Sellers shall pay these costs and expenses.
|
(iii)
|
The Buyers' representative(s) shall have the right to be present in the drydock, as observe(s) only without interfering with the work or decisions of the Classification Society surveyor.
|
(iv)
|
The Buyers shall have the right to have the underwater parts of the Vessel cleaned and painted at their risk, cost and expense without interfering with the Seller's or the Classification Society surveyor's work, if any, and without affecting the Vessel's timely delivery. If, however, the Buyers' work in drydock is still in progress when the Sellers have completed the work which the Sellers are required to do, the additional docking time needed to complete the Buyers' work shall be for the Buyers' risk, cost and expense. In the event that the Buyers' work requires such additional time, the Sellers may upon completion of the Sellers' work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and, notwithstanding Clause 5(a), the Buyers shall be obliged to take delivery in accordance with Clause 3 (Payment), whether the Vessel is in drydock or not.
|
7.
|
Spares, bunkers and other items
|
|
The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on shore. All spare parts and spare equipment including spare tail-end shaft(s) and/or spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or unused, whether on board or not shall become the Buyers' property, but spares on order are excluded. Forwarding charges, if any, shall be for the Buyers' account. The Sellers are not required to replace spare parts including spare tail-end shaft(s) and spare propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the property of the Buyers. Unused stores and provisions shall be included in the sale and be taken over by the Buyers without extra payment.
|
||
Library and forms exclusively for use in the Sellers' vessel(s) and captain's, officers' and crew's personal belongings including the slop chest are excluded from the sale without compensation,
|
as well as the following additional items: To be mutually agreed between the Parties
|
||
Items on board which are on hire or owned by third parties, listed as follows, are excluded from the sale without compensation: To be mutually agreed between the Parties
|
||
Items on board at the time of inspection which are on hire or owned by third parties, not listed above, shall be replaced or procured by the Sellers prior to delivery at their cost and expense.
|
||
The Buyers shall take over remaining bunkers and unused unbroached lubricating and hydraulic oils and greases in storage tanks and unopened drums and pay
|
||
(a) *the actual net price (excluding barging expenses) as evidenced by invoices or vouchers
|
||
|
||
for the quantities taken over.
|
||
Payment under this Clause shall be made at the same time and place and in the same currency as the Purchase Price.
|
||
"inspection" in this Clause 7, shall mean the Buyers' inspection according to Clause 4(a) or 4(b) (Inspection), if applicable. If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.
|
||
*(a) and (b) are alternatives, delete whichever is not applicable. In the absence of deletions alternative (a) shall apply.
|
8.
|
Documentation
|
|
The place of closing: Oslo, Norway
|
||
(a) In exchange for payment of the Purchase Price the Sellers shall provide the Buyers with the following delivery documents:
|
(i)
|
Legal Bill(s) of Sale in a form recordable in the Buyers' Nominated Flag State, transferring title of the Vessel and stating that the Vessel is free from all mortgages, encumbrances and maritime liens or any other debts whatsoever, duly notarially attested and legalised or apostilled, as required by the Buyers' Nominated Flag State;
|
(ii)
|
Evidence that all necessary corporate, shareholder and other action has been taken by the Sellers to authorise the execution, delivery and performance of this Agreement;
|
(iii)
|
Power of Attorney of the Sellers appointing one or more representatives to act on behalf of the Sellers in the performance of this Agreement, duly notarially attested and legalised or apostilled (as appropriate);
|
(iv)
|
Certificate or Transcript of Registry issued by the competent authorities of the flag state on the date of delivery evidencing the Sellers' ownership of the Vessel and that the Vessel is free from registered encumbrances and mortgages, to be faxed or e-mailed by such authority to the closing meeting with the original to be sent to the Buyers as soon as possible after delivery of the Vessel;
|
(v)
|
Declaration of Class or (depending on the Classification Society) a Class Maintenance Certificate issued within three (3) Banking Days prior to delivery confirming that the Vessel is in Class free of condition/recommendation;
|
(vi)
|
Certificate of Deletion of the Vessel from the Vessel's registry or other official evidence of deletion appropriate to the Vessel's registry at the time of delivery, or, in the event that the registry does not as a matter of practice issue such documentation immediately a written undertaking by the Sellers to effect deletion from the Vessel's registry forthwith and provide a certificate or other official evidence of deletion to the Buyers promptly and latest within four (4) weeks after the Purchase Price has been paid and the Vessel has been delivered;
|
(vii)
|
A copy of the Vessel's Continuous Synopsis Record certifying the date on which the Vessel ceased to be registered with the Vessel's registry, or, in the event that the registry does not as a matter of practice issue such certificate immediately, a written undertaking from the Sellers to provide the copy of this certificate promptly upon it being issued together with evidence of submission by the Sellers of a duly executed Form 2 stating the date on which the Vessel shall cease to be registered with the Vessel's registry;
|
(viii)
|
Commercial Invoice for the Vessel;
|
(ix)
|
Commercial Invoice(s) for bunkers, lubricating and hydraulic oils and greases;
|
(x)
|
A copy of the Sellers' letter to their satellite communication provider cancelling the Vessel's communication contract which is to be sent immediately after delivery of the Vessel;
|
(xi)
|
Any additional documents as may reasonably be required by the competent authorities of the Buyers' Nominated Flag State for the purpose of registering the Vessel, provided the Buyers notify the Sellers of any such documents as soon as possible after the date of this Agreement; and
|
(xii)
|
The Sellers' letter of confirmation that to the best of their knowledge, the Vessel is not black listed by any nation or international organisation.
|
(b) At the time delivery the Buyers shall provide the Sellers with:
|
(i)
|
Evidence that all necessary corporate, shareholder and other action has been taken by the Buyers to authorise the execution, delivery and performance of this Agreement; and
|
(ii)
|
Power of Attorney of the Buyers appointing one or more representatives to act on behalf of the Buyers in the performance of this Agreement, duly notarially attested and legalised or apostilled (as appropriate).
|
(c) If any of the documents listed in Sub clauses (a) and (b) above are not in the English language they shall be accompanied by an English translation by an authorised translator or certified by a lawyer qualified to practice in the country of the translated language.
|
||
(d) The Parties shall to the extent possible exchange copies, drafts or samples of the documents listed in Sub-clause (a) and Sub-clause (b) above for review and comment by the other party not later than _______ (state number of days), or if left blank, nine (9) days prior to the Vessel's intended date of readiness for delivery as notified by the Sellers pursuant to Clause 5(b) of this Agreement.
|
||
(e) Concurrent with the exchange of documents in Sub-clause (a) and Sub-clause (b) above, the Sellers shall also hand to the Buyers the classification certificate(s) as well as all plans, drawings and manuals, (excluding ISM/ISPS manuals), which are on board the Vessel. Other certificates which are on board the Vessel shall also be handed over to the Buyers unless the Sellers are required to retain same, in which case the Buyers have the right to take copies.
|
||
(f) Other technical documentation which may be in the Sellers' possession shall promptly after delivery be forwarded to the Buyers at their expense, if they so request. The Sellers may keep the Vessel's log books but the Buyers have the right to take copies of same.
|
||
(g) The Parties shall sign and deliver to each other a Protocol of Delivery and Acceptance confirming the date and time of delivery of the Vessel from the Sellers to the Buyers.
|
9.
|
Encumbrances
|
|
The Sellers warrant that the Vessel, at the time of delivery, is free from all charters, encumbrances, mortgages and maritime liens or any other debts whatsover, and is not subject to Port State or other administrative detentions. The Sellers hereby undertake to indemnify the Buyers against all consequences of claims made against the Vessel which have been incurred prior to the time of delivery.
|
10.
|
Taxes, fees and expenses
|
Any taxes, fees and expenses in connection with the purchase and registration in the Buyers' Nominated Flag State shall be for the Buyers' account, whereas similar charges in connection with the closing of the Sellers' register shall be for the Sellers' account.
|
|
11.
|
Condition on delivery
|
The Vessel with everything belonging to her shall be at the Sellers' risk and expense until she is delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be delivered and taken over as she was at the time of inspection, fair wear and tear excepted.
|
|
However, the Vessel shall be delivered free of cargo and free of stowaways with her Class maintained without condition/ recommendation*, free of average damage affecting the Vessel's class, and with her classification certificates and national certificates, as well as all other certificates the Vessel had at the time of inspection, valid and unextended without condition/ recommendation* by the Classification Society or the relevant authorities at the time of delivery.
|
|
"inspection" in this Clause 11, shall mean the Buyers' inspection according to Clause 4(a) or 4(b) (Inspections), if applicable. If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.
|
*Notes and memoranda, if any, in the surveyor's report which are accepted by the Classification Society without condition/recommendation are not to be taken into account.
|
12.
|
Name/markings
|
Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel markings.
|
|
13.
|
Buyers' default
|
|
|
Should the Purchase Price not be settled
|
|
14.
|
Sellers' default
|
Should the Sellers fail to give Notice of Readiness in accordance with Clause 5(b) or fail to be ready to validly complete a legal transfer by the Cancelling Date the Buyers shall have the option of cancelling this Agreement. If after Notice of Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not made physically ready again by the Cancelling Date and new Notice of Readiness given, the Buyers shall retain their option to cancel.
|
|
Should the Sellers fail to give Notice of Readiness by the Cancelling Date or fail to be ready to validly complete a legal transfer as aforesaid they shall make due compensation to the Buyers for their loss and for all expenses together with interest if their failure is due to proven negligence and whether or not the Buyers cancel this Agreement.
|
15.
|
Buyers' representatives
|
After this Agreement has been signed by the Parties
|
|
These representatives are on board for the purpose of familiarisation and in the capacity of observers only, and they shall not interfere in any respect with the operation of the Vessel. The Buyers and the Buyers' representatives shall sign the Sellers' P&I Club's standard letter of indemnity prior to their embarkation.
|
|
16.
|
Law and Arbitration
|
(a)* This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause.
|
|
The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced.
|
|
The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within fourteen (14) calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the fourteen (14) days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the fourteen (14) days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both Parties as if the sole arbitrator had been appointed by agreement.
|
|
In cases where neither the claim nor any counterclaim exceeds the sum of US$100,000 the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.
|
|
|
|
|
|
|
|
|
|
*16(a), 16(b) and 16(c) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 16(a) shall apply.
|
17.
|
Notices
|
|
All notices to be provided under this Agreement shall be in writing.
|
||
Contact details for recipients of notices are as follows:
|
||
For the Buyers: c/o Golden Ocean Group Limited, PO Box HM 1593, Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, HM 08 Bermuda. For the attention of Per Heiberg.
|
||
For the Sellers: ___________
|
18.
|
Entire Agreement
|
The written terms of this Agreement comprise the entire agreement between the Buyers and the Sellers in relation to the sale and purchase of the Vessel and supersede all previous agreements whether oral or written between the Parties in relation thereto.
|
|
Each of the Parties acknowledges that in entering into this Agreement it has not relied on and shall have no right or remedy in respect of any statement, representation, assurance or warranty (whether or not made negligently) other than as is expressly set out in this Agreement.
|
|
Any terms implied into this Agreement by any applicable statute or law are hereby excluded to the extent that such exclusion can legally be made. Nothing in this Clause shall limit or exclude any liability for fraud.
|
|
/s/ Spyros Episkopou
|
/s/ Per Heiberg
|
For and on behalf of the Sellers
|
For and on behalf of the Buyers
|
Name: Spyros Episkopou
|
Name: Per Heiberg
|
Title: Director
|
Title: Attorney-in-fact
|
19. |
PAYMENT
|
19.1 |
The Purchase Price for the Vessel shall be settled in accordance with Clauses 19.2 and 19.3 below.
|
19.2 |
On Delivery of the Vessel:
|
(i) |
the Buyers shall procure that Golden Ocean Group Limited shall issue to Hemen Holding Limited ("Hemen") (an entity nominated by the Sellers) the number of shares set out under "Share Consideration" in Clause 19.3 below,;
|
(ii) |
the Sellers shall procure that Sterna Finance Limited shall enter into a seller's credit loan agreement (the "Loan Agreement") in the form set out in Appendix 1 of this Agreement, granting the Buyers a loan in respect of the Vessel in the amount set out under "Loan Amount" in Clause 19.3 below. The obligations of the Buyers under the Loan Agreement shall be guaranteed by Golden Ocean Holdings Limited; and
|
(iii) |
the Buyers shall pay to the Sellers in full free of bank charges to the Sellers' Account (i) the Cash Element set out under "Cash Element" in Clause 19.3 below, together with (ii) all other sums payable on delivery by the Buyers to the Sellers under this Agreement (i.e. bunkers, lubricating oils and other costs (if any) pursuant to Clause 7).
|
19.3 |
Payment Calculation:
|
1 Vessel Name
|
2 Share Consideration
Number of Shares to be issued by Golden Ocean Group Limited to Hemen
|
3 Loan Amount (USD)
|
4 Cash Element
|
Sea Behike
|
2,000,000
|
21,500,000
|
4,500,000
|
20. |
ASSIGNMENT
|
21. |
CONFLICT
|
For and on behalf of the Sellers
|
||
/s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
|
||
Capacity: Director
|
||
For and on behalf of the Buyers
|
||
/s/ Per Heiberg
|
||
Name: Per Heiberg
|
||
Capacity: Attorney-in-fact
|
USD 21,500,000
LOAN AGREEMENT
dated _______ 2017
between
Golden Behike Inc.
as Borrower
Golden Ocean Holdings Limited
as Guarantor
and
Sterna Finance Limited
as Lender
|
||
www.bahr.no
|
CONTENTS
|
|
Clause
|
Page
|
1.
|
DEFINITIONS AND INTERPRETATION
|
3
|
2.
|
THE LOAN
|
5
|
3.
|
PURPOSE
|
5
|
4.
|
REPAYMENT
|
5
|
5.
|
REDUCTION, PREPAYMENT AND CANCELLATION
|
5
|
6.
|
INTEREST
|
6
|
7.
|
INTEREST PERIODS
|
6
|
8.
|
TAX GROSS UP AND INDEMNITIES
|
7
|
9.
|
REPRESENTATIONS AND WARRANTIES
|
8
|
10.
|
GENERAL UNDERTAKINGS
|
9
|
11.
|
EVENTS OF DEFAULT
|
9
|
12.
|
SET-OFF
|
11
|
13.
|
MISCELLANEOUS
|
11
|
14.
|
GOVERNING LAW AND JURISDICTION
|
12
|
(1) |
Golden Behike Inc, a company incorporated under the laws of Liberia with its registered address at 80 Broad Street Monrovia, Liberia (the "Borrower"); and
|
(2) |
Golden Ocean Holdings Limited, a company incorporated under the laws of Bermuda with its registered address at Par La Ville Place, 14th Par La Ville Road, 4th Floor, Hamilton HM 08, Bermuda (the "Guarantor"),
|
(3) |
Sterna Finance Limited, a company incorporated under the laws of Bermuda with its registered address at Par La Ville Place, 14th Par La Ville Road, 4th Floor, Hamilton HM 08, Bermuda, and Registration Number 50970 (the "Lender").
|
(A) |
The Borrower has entered into a memorandum of agreement with Dedalos Shipowning Inc to acquire the 2016 Daehan-built capsize vessel Sea Behike (IMO no. 9722417) (the "Vessel" and the "Behike MOA") at a purchase price of USD 43 million (the "Purchase Price");
|
(B) |
it has been agreed that the Purchase Price for the Vessel shall be settled partly with shares in the Borrower's ultimate parent, Golden Ocean Group Limited, partly in cash and the remaining 50% of the Purchase Price shall be settled through a USD 21,500,000 seller's credit loan (the "Loan"); and
|
(C) |
the Lender has agreed to grant the Loan to the Borrower on the terms and conditions of this Agreement.
|
1. |
DEFINITIONS AND INTERPRETATION
|
1.1 |
Definitions
|
(a) |
any person, other than Hemen Holdings Limited and/or one or more companies controlled directly or indirectly with more than fifty per cent (50%) by trusts established by Mr John Fredriksen for the benefit of his immediate family ("Trusts"), or group of persons acting in concert, obtains more than fifty per cent (50%) of the voting rights or share capital or otherwise control the appointment of members of the board of directors of Golden Ocean Group Limited; or
|
(b) |
Hemen Holdings Limited and/or one or more companies controlled directly or indirectly with more than fifty per cent (50%) by one or more Trusts ceases to own a minimum of twenty per cent (20%) of the voting rights or share capital or otherwise
|
(a) |
the business, operation, assets or condition (financial or otherwise) of the Borrower; or
|
(b) |
the ability of the Borrower to perform any of its obligations under the Agreement.
|
(a) |
has direct or indirect control; or
|
(b) |
owns directly or indirectly more than fifty (50) per cent (votes and capital),
|
1.2 |
Construction
|
(a) |
words denoting the singular number shall include the plural and vice versa; and
|
(b) |
references to a "person" shall include any individual, firm, partnership, joint venture, company, corporation, trust, fund, body, corporate, unincorporated body of persons, or any state or any agency of a state or association (whether or not having separate legal personality); and
|
(c) |
an Event of Default is "continuing" if it has not been remedied or waived.
|
2. |
THE LOAN
|
3. |
PURPOSE
|
3.1 |
Purpose
|
4. |
REPAYMENT
|
5. |
REDUCTION, PREPAYMENT AND CANCELLATION
|
5.1 |
Mandatory reduction – illegality
|
(a) |
the Lender shall promptly notify the Borrower (specifying the obligations the performance of which is thereby rendered unlawful and the law giving rise to the same); and
|
(b) |
the Borrower shall repay all amounts outstanding under this Agreement in full on the last day of the Interest Period occurring after the Lender has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Borrower (being no earlier than the last day of any applicable grace period permitted by law).
|
5.2 |
Mandatory reduction – Change of Control
|
5.3 |
Voluntary prepayment
|
6. |
INTEREST
|
6.1 |
Interest
|
(a) |
Margin; and
|
(b) |
LIBOR.
|
6.2 |
Payment of interest
|
6.3 |
Default interest
|
7. |
INTEREST PERIODS
|
7.1 |
Interest Periods
|
(a) |
The Interest Period for the Loan is 3 months and the start of the first Interest Period is the day of Closing under the Behike MOA.
|
(b) |
An Interest Period for the Loan shall not extend beyond the Maturity Date.
|
7.2 |
Non-Business Days
|
8. |
TAX GROSS UP
|
8.1 |
Tax Gross-up
|
8.2 |
Value added tax
|
9. |
GUARANTEE AND INDEMNITY
|
9.1 |
Guarantee and indemnity
|
(a) |
guarantees to the Lender, as and for its own debt and not merely as surety, the due and punctual observance and performance by the Borrower's obligations under this Agreement;
|
(b) |
undertakes with the Lender that whenever the Borrower does not pay any amount when due under or in connection with this Agreement, that Guarantor shall immediately on demand by the Lender pay that amount as if it was the principal obligor; and
|
(c) |
indemnify the Lender immediately on demand against any cost, loss or liability suffered by the Lender if any obligation guaranteed by the Guarantor is or becomes unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount, which the Lender would otherwise have been entitled to recover.
|
9.2 |
Continuing guarantee
|
9.3 |
Number of claims
|
9.4 |
Survival of Guarantor's liability
|
(a) |
any time, waiver, consent, forbearance or other indulgence given or agreed by the Lender with the Borrower in respect of the Borrower's obligations under this Agreement; or
|
(b) |
any legal limitation, disability or incapacity of the Borrower related to this Agreement; or
|
(c) |
any amendments to or variations of this Agreement agreed by the Lender with the Borrower; or
|
(d) |
the liquidation, bankruptcy or dissolution (or proceedings analogous thereto) of the Borrower; or
|
(e) |
any other circumstance which might otherwise constitute a defence available to, or discharge of, the Borrower.
|
10. |
REPRESENTATIONS AND WARRANTIES
|
10.1 |
Power and authority
|
10.2 |
Non-conflict with other obligations
|
10.3 |
No misleading information
|
(a) |
Any factual information provided by the Borrower was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.
|
(b) |
The financial projections delivered to the Lender have been prepared on the basis of recent historical information and on the basis of reasonable assumptions.
|
10.4 |
No proceedings pending or threatened
|
10.5 |
Good title to assets
|
10.6 |
Insolvency
|
11. |
GENERAL UNDERTAKINGS
|
11.1 |
Compliance with laws
|
11.2 |
Disposals
|
11.3 |
Change of business
|
11.4 |
No mergers etc.
|
11.5 |
Transactions with Affiliates
|
11.6 |
Negative pledge
|
11.7 |
Borrowings
|
12. |
EVENTS OF DEFAULT
|
12.1 |
Non-payment
|
12.2 |
Other obligations
|
(a) |
An Obligor does not comply with any provision of the Agreement (other than those referred to in Clause 12.1 (Non-payment); and
|
(b) |
no Event of Default under (a) above will occur if the failure to comply is (in the reasonable opinion of the Lender) capable of remedy and is remedied within fifteen (15) Business Days of the earlier of the Lender giving notice to the Obligors or the Obligors becoming aware of the failure to comply.
|
12.3 |
Misrepresentation
|
12.4 |
Cross default
|
(a) |
Any financial indebtedness of any of the Obligors or its Subsidiaries is not paid when due nor within any originally applicable grace period;
|
(b) |
any financial indebtedness of any of the Obligors or its Subsidiaries 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 the Obligors and its Subsidiaries is cancelled or suspended by a creditor of the Obligors as a result of an event of default (however described); or
|
(d) |
any creditor of the Obligors or its Subsidiaries becomes entitled to declare any financial indebtedness due and payable prior to its specified maturity as a result of an event of default (however described);
|
12.5 |
Insolvency and Insolvency proceedings
|
(a) |
Any corporate action, legal proceedings or other procedure or step is taken in relation to the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any of the Obligors;
|
(b) |
Any Obligor is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness;
|
(c) |
the value of the assets of any of the Obligors is less than its liabilities (taking into account contingent and prospective liabilities);
|
(d) |
a composition, compromise, assignment or arrangement with any creditor of any of the Obligors;
|
(e) |
the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any of the Obligors or any of its assets; or
|
(f) |
any analogous procedure or step is taken in any jurisdiction.
|
12.6 |
Creditors' process
|
12.7 |
Unlawfulness
|
12.8 |
Acceleration
|
(a) |
declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Agreement be immediately due and payable, whereupon they shall become immediately due and payable; and/or
|
(b) |
declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Lender.
|
13. |
SET-OFF
|
14. |
MISCELLANEOUS
|
14.1 |
No set-off by the Obligors
|
14.2 |
Business Days
|
(a) |
Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).
|
(b) |
During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.
|
15. |
GOVERNING LAW AND JURISDICTION
|
(a) |
This Agreement shall be governed by and construed in accordance with Norwegian law.
|
(b) |
Subject to paragraph (c) below, the courts of Norway shall have exclusive jurisdiction over matters arising out of or in connection with this Agreement with Oslo district court (Norwegian: tingrett) as agreed legal venue.
|
(c) |
The submission to the jurisdiction of Norway shall not limit the right of the Lender to take proceedings against the Borrower in any court which may otherwise exercise jurisdiction over the Borrower or any of its assets.
|
As Borrower:
|
As Lender:
|
|
|
|
|
Name:
|
Name:
|
|
Title:
|
Title:
|
|
Company: Golden Behike Inc.
|
Company: Sterna Finance Limited
|
Guarantor:
|
||
|
||
Name:
|
||
Title:
|
||
Company: Golden Ocean Holdings Limited
|
Norwegian Shipbrokers' Association's
|
|
Memorandum of Agreement for sale and
|
|
purchase of ships. Adopted by BIMCO in 1956.
|
|
Code-name
|
|
SALEFORM 2012
|
|
Revised 1966, 1983 and 1986/87, 1993 and 2012
|
Year of Build: 2016
|
Builder/Yard: Daehan Shipbuilding Co. Ltd., Jeollanam-Do, South Korea
|
|
Flag: Marshall Islands
|
Place of Registration: Majuro
|
GT/NT: 94091/59482
|
1.
|
Purchase Price
|
The Purchase Price is set out in Clause 19 (Payment)
|
|
|
|
|
|
|
|
|
|
||
|
||
3.
|
Payment
|
|
On delivery of the Vessel, but not later than three (3) Banking Days after the date that Notice of Readiness has been given in accordance with Clause 5 (Time and place of delivery and notices):
|
||
(i)
|
|
|
|
|
|
4.
|
Inspection
|
|
(a)* The Buyers have inspected and accepted the Vessel's classification records
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
*4(a) and 4(b) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 4(a) shall apply.
|
5.
|
Time and place of delivery and notices
|
|
(a) The Vessel shall be delivered and taken over safely afloat at a safe and accessible berth or anchorage at
|
||
Notice of Readiness shall not be tendered before: 1 November 2017 (date)
|
||
Cancelling Date (see Clauses 5(c), 6 (a)(i), 6 (a) (iii) and 14): 16 February 2018
|
||
|
||
When the Vessel is at the place of delivery and physically ready for delivery in accordance with this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.
|
||
(c) If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, the Vessel will not be ready for delivery by the Cancelling Date they may notify the Buyers in writing stating the date when they anticipate that the Vessel will be ready for delivery and proposing a new Cancelling Date. Upon receipt of such notification the Buyers shall have the option of either cancelling this Agreement in accordance with Clause 14 (Sellers' Default) within three (3) Banking Days of receipt of the notice or of accepting the new date as the new Cancelling Date.
|
If the Buyers have not declared their option within three (3) Banking Days of receipt of the Sellers' notification or if the Buyers accept the new date, the date proposed in the Sellers' notification shall be deemed to be the new Cancelling Date and shall be substituted for the Cancelling Date stipulated in line 79.
If this Agreement is maintained with the new Cancelling Date all other terms and conditions hereof including those contained in Clauses 5(b) and 5(d) shall remain unaltered and in full force and effect.
(d) Cancellation, failure to cancel or acceptance of the new Cancelling Date shall be entirely without prejudice to any claim for damages the Buyers may have under Clause 14 (Sellers' Default) for the Vessel not being ready by the original Cancelling Date.
(e) Should the Vessel become an actual, constructive or compromised total loss before delivery
|
||
6.
|
Divers Inspection / Drydocking
|
(i)
|
The Buyers shall have the option at their cost and expense to arrange for an underwater inspection by a diver approved by the Classification Society prior to the delivery of the Vessel. Such option shall be declared latest nine (9) days prior to the Vessel's intended date of readiness for delivery as notified by the Sellers pursuant to Clause 5(b) of this Agreement. The Sellers shall at their cost and expense make the Vessel available for such inspection. This inspection shall be carried out without undue delay and in the presence of a Classification Society surveyor arranged for by the Sellers and paid for by the Buyers. The Buyers' representative(s) shall have the right to be present at the diver's inspection as observer(s) only without interfering with the work or decisions of the Classification Society surveyor. The extent of the inspection and the conditions under which it is performed shall be to the satisfaction of the Classification Society. If the conditions at the place of delivery are unsuitable for such inspection, the Sellers shall at their cost and expense make the Vessel available at a suitable alternative place near to the delivery port, in which event the Cancelling Date shall be extended by the additional time required for such positioning and the subsequent re-positioning. The Sellers may not tender Notice of Readiness prior to completion of the underwater inspection.
|
(ii)
|
If the rudder, propeller, bottom or other underwater parts below the deepest load line are found broken, damaged or defective so as to affect the Vessel's class, then (1) unless repairs can be carried out afloat to the satisfaction of the Classification Society, the Sellers shall arrange for the Vessel to be drydocked at their expense for inspection by the Classification Society of the Vessel's underwater parts below the deepest load line, the extent of the inspection being in accordance with the Classification Society's rules (2) such defects shall be made good by the Sellers at their cost and expense to the satisfaction of the Classification Society without condition/recommendation** and (3) the Sellers shall pay for the underwater inspection and the Classification Society's attendance.
|
|
Notwithstanding anything to the contrary in this Agreement, if the Classification Society do not require the aforementioned defects to be rectified before the next class drydocking survey, the Sellers shall be entitled to deliver the Vessel with these defects against a deduction from the Purchase Price of the estimated direct cost (of labour and materials) of carrying out the repairs to the satisfaction of the Classification Society, whereafter the Buyers shall have no further rights whatsoever in respect of the defects and/or repairs. The estimated direct cost of the repairs shall be the average of quotes for the repair work obtained from two reputable independent shipyards at or in the vicinity of the port of delivery, one to be obtained by each of the Parties within two (2) Banking Days from the date of the imposition of the condition/recommendation, unless the Parties agree otherwise. Should either of the Parties fall to obtain such a quote within the stipulated time then the quote duly obtained by the other Party shall be the sole basis for the estimate of the direct repair costs. The Sellers may not tender Notice of Readiness prior to such estimate having been established. |
(iii)
|
If the Vessel is to be drydocked pursuant to Clause 6(a)(ii) and no suitable dry docking facilities are available at the port of delivery, the Sellers shall take the Vessel to a port where suitable drydocking facilities are available, whether within or outside the delivery range as per Clause 5(a). Once drydocking has taken place the Sellers shall deliver the Vessel at a port within the delivery range as per Clause 5(a) which shall, for the purpose of this Clause, become the new port of delivery. In such event the Cancelling Date shall be extended by the additional time required for the drydocking and extra steaming, but
|
limited to a maximum of fourteen (14) days.
|
(i)
|
The Classification Society may require survey of the tailshaft system, the extent of the survey being to the satisfaction of the Classification surveyor. If such survey is not required by the Classification Society, the Buyers shall have the option to require the tailshaft to be drawn and surveyed by the Classification Society, the extent of the survey being in accordance with the Classification Society's rules for tailshaft survey and consistent with the current stage of the Vessel's survey cycle. The Buyers shall declare whether they require the tailshaft to be drawn and surveyed not later than by the completion of the inspection by the Classification Society. The drawing and refitting of the tailshaft shall be arranged by the Sellers. Should any part of the tailshaft system be condemned or found defective so as to affect the Vessel's class, these parts shall be renewed or made good at the sellers' cost and expense to the satisfaction of Classification Society without condition/recommendation**.
|
(ii)
|
The costs and expenses relating to the survey of the tailshaft system shall be borne by the Buyers unless the Classification Society requires such survey to be carried out or if parts of the system are condemned or found defective or broken so as to affect the Vessel's class, in which case the Sellers shall pay these costs and expenses.
|
(iii)
|
The Buyers' representative(s) shall have the right to be present in the drydock, as observer(s) only without interfering with the work or decisions of the Classification Society surveyor.
|
(iv)
|
The Buyers shall have the right to have the underwater parts of the Vessel cleaned and painted at their risk, cost and expense without interfering with the Seller's or the Classification Society surveyor's work, if any, and without affecting the Vessel's timely delivery. If, however, the Buyers' work in drydock is still in progress when the Sellers have completed the work which the Sellers are required to do, the additional docking time needed to complete the Buyers' work shall be for the Buyers' risk, cost and expense. In the event that the Buyers' work requires such additional time, the Sellers may upon completion of the Sellers' work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and, notwithstanding Clause 5(a), the Buyers shall be obliged to take delivery in accordance with Clause 3 (Payment), whether the Vessel is in drydock or not.
|
7.
|
Spares, bunkers and other items
|
|
The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on shore. All spare parts and spare equipment including spare tail-end shaft(s) and/or spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or unused, whether on board or not shall become the Buyers' property, but spares on order are excluded. Forwarding charges, if any, shall be for the Buyers' account. The Sellers are not required to replace spare parts including spare tail-end shaft(s) and spare propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to delivery, but the replaced items shall be the property of the Buyers. Unused stores and provisions shall be included in the sale and be taken over by the Buyers without extra payment.
|
||
Library and forms exclusively for use in the Sellers' vessel(s) and captain's, officers' and crew's personal belongings including the slop chest are excluded from the sale without compensation,
|
as well as the following additional items: To be mutually agreed between the Parties
|
||
Items on board which are on hire or owned by third parties, listed as follows, are excluded from the sale without compensation: To be mutually agreed between the Parties
|
||
Items on board at the time of inspection which are on hire or owned by third parties, not listed above, shall be replaced or procured by the Sellers prior to delivery at their cost and expense.
|
||
The Buyers shall take over remaining bunkers and unused lubricating and hydraulic oils and greases in storage tanks and unopened drums and pay
|
||
(a) *the actual net price (excluding barging expenses) as evidenced by invoices or vouchers
|
||
|
||
for the quantities taken over.
|
||
Payment under this Clause shall be made at the same time and place and in the same currency as the Purchase Price.
|
||
"inspection" in this Clause 7, shall mean the Buyers' inspection according to Clause 4(a) or 4(b) (Inspection), if applicable. If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.
|
||
*(a) and (b) are alternatives, delete whichever is not applicable. In the absence of deletions alternative (a) shall apply.
|
8.
|
Documentation
|
|
The place of closing: Oslo, Norway
|
||
(a) In exchange for payment of the Purchase Price the Sellers shall provide the Buyers with the following delivery documents:
|
(i)
|
Legal Bill(s) of Sale in a form recordable in the Buyers' Nominated Flag State, transferring title of the Vessel and stating that the Vessel is free from all mortgages, encumbrances and maritime liens or any other debts whatsoever, duly notarially attested and legalised or apostilled, as required by the Buyers' Nominated Flag State;
|
(ii)
|
Evidence that all necessary corporate, shareholder and other action has been taken by the Sellers to authorise the execution, delivery and performance of this Agreement;
|
(iii)
|
Power of Attorney of the Sellers appointing one or more representatives to act on behalf of the Sellers in the performance of this Agreement, duly notarially attested and legalised or apostilled (as appropriate);
|
(iv)
|
Certificate or Transcript of Registry issued by the competent authorities of the flag state on the date of delivery evidencing the Sellers' ownership of the Vessel and that the Vessel is free from registered encumbrances and mortgages, to be faxed or e-mailed by such authority to the closing meeting with the original to be sent to the Buyers as soon as possible after delivery of the Vessel;
|
(v)
|
Declaration of Class or (depending on the Classification Society) a Class Maintenance Certificate issued within three (3) Banking Days prior to delivery confirming that the Vessel is in Class free of condition/recommendation;
|
(vi)
|
Certificate of Deletion of the Vessel from the Vessel's registry or other official evidence of deletion appropriate to the Vessel's registry at the time of delivery, or, in the event that the registry does not as a matter of practice issue such documentation immediately a written undertaking by the Sellers to effect deletion from the Vessel's registry forthwith and provide a certificate or other official evidence of deletion to the Buyers promptly and latest within four (4) weeks after the Purchase Price has been paid and the Vessel has been delivered;
|
(vii)
|
A copy of the Vessel's Continuous Synopsis Record certifying the date on which the Vessel ceased to be registered with the Vessel's registry, or, in the event that the registry does not as a matter of practice issue such certificate immediately, a written undertaking from the Sellers to provide the copy of this certificate promptly upon it being issued together with evidence of submission by the Sellers of a duly executed Form 2 stating the date on which the Vessel shall cease to be registered with the Vessel's registry;
|
(viii)
|
Commercial Invoice for the Vessel;
|
(ix)
|
Commercial Invoice(s) for bunkers, lubricating and hydraulic oils and greases;
|
(x)
|
A copy of the Sellers' letter to their satellite communication provider cancelling the Vessel's communication contract which is to be sent immediately after delivery of the Vessel;
|
(xi)
|
Any additional documents as may reasonably be required by the competent authorities of the Buyers' Nominated Flag State for the purpose of registering the Vessel, provided the Buyers notify the Sellers of any such documents as soon as possible after the date of this Agreement; and
|
(xii)
|
The Sellers' letter of confirmation that to the best of their knowledge, the Vessel is not black listed by any nation or international organisation.
|
(b) At the time delivery the Buyers shall provide the Sellers with:
|
(i)
|
Evidence that all necessary corporate, shareholder and other action has been taken by the Buyers to authorise the execution, delivery and performance of this Agreement; and
|
(ii)
|
Power of Attorney of the Buyers appointing one or more representatives to act on behalf of the Buyers in the performance of this Agreement, duly notarially attested and legalised or apostilled (as appropriate).
|
(c) If any of the documents listed in Sub clauses (a) and (b) above are not in the English language they shall be accompanied by an English translation by an authorised translator or certified by a lawyer qualified to practice in the country of the translated language.
|
||
(d) The Parties shall to the extent possible exchange copies, drafts or samples of the documents listed in Sub-clause (a) and Sub-clause (b) above for review and comment by the other party not later than _______ (state number of days), or if left blank, nine (9) days prior to the Vessel's intended date of readiness for delivery as notified by the Sellers pursuant to Clause 5(b) of this Agreement.
|
||
(e) Concurrent with the exchange of documents in Sub-clause (a) and Sub-clause (b) above, the Sellers shall also hand to the Buyers the classification certificate(s) as well as all plans, drawings and manuals, (excluding ISM/ISPS manuals), which are on board the Vessel. Other certificates which are on board the Vessel shall also be handed over to the Buyers unless the Sellers are required to retain same, in which case the Buyers have the right to take copies.
|
||
(f) Other technical documentation which may be in the Sellers' possession shall promptly after delivery be forwarded to the Buyers at their expense, if they so request. The Sellers may keep the Vessel's log books but the Buyers have the right to take copies of same.
|
||
(g) The Parties shall sign and deliver to each other a Protocol of Delivery and Acceptance confirming the date and time of delivery of the Vessel from the Sellers to the Buyers.
|
9.
|
Encumbrances
|
The Sellers warrant that the Vessel, at the time of delivery, is free from all charters, encumbrances, mortgages and maritime liens or any other debts whatsover, and is not subject to Port State or other administrative detentions. The Sellers hereby undertake to indemnify the Buyers against all consequences of claims made against the Vessel which have been incurred prior to the time of delivery.
|
10.
|
Taxes, fees and expenses
|
Any taxes, fees and expenses in connection with the purchase and registration in the Buyers' Nominated Flag State shall be for the Buyers' account, whereas similar charges in connection with the closing of the Sellers' register shall be for the Sellers' account.
|
|
11.
|
Condition on delivery
|
The Vessel with everything belonging to her shall be at the Sellers' risk and expense until she is delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be delivered and taken over as she was at the time of inspection, fair wear and tear excepted.
|
|
However, the Vessel shall be delivered free of cargo and free of stowaways with her Class maintained without condition/ recommendation*, free of average damage affecting the Vessel's class, and with her classification certificates and national certificates, as well as all other certificates the Vessel had at the time of inspection, valid and unextended without condition/ recommendation* by the Classification Society or the relevant authorities at the time of delivery.
|
|
"inspection" in this Clause 11, shall mean the Buyers' inspection according to Clause 4(a) or 4(b) (Inspections), if applicable. If the Vessel is taken over without inspection, the date of this Agreement shall be the relevant date.
|
*Notes and memoranda, if any, in the surveyor's report which are accepted by the Classification Society without condition/recommendation are not to be taken into account.
|
12.
|
Name/markings
|
Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel markings.
|
|
13.
|
Buyers' default
|
|
|
Should the Purchase Price not be settled
|
|
14.
|
Sellers' default
|
Should the Sellers fail to give Notice of Readiness in accordance with Clause 5(b) or fail to be ready to validly complete a legal transfer by the Cancelling Date the Buyers shall have the option of cancelling this Agreement. If after Notice of Readiness has been given but before the Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not made physically ready again by the Cancelling Date and new Notice of Readiness given, the Buyers shall retain their option to cancel.
|
|
Should the Sellers fail to give Notice of Readiness by the Cancelling Date or fail to be ready to validly complete a legal transfer as aforesaid they shall make due compensation to the Buyers for their loss and for all expenses together with interest if their failure is due to proven negligence and whether or not the Buyers cancel this Agreement.
|
15.
|
Buyers' representatives
|
After this Agreement has been signed by the Parties
|
|
These representatives are on board for the purpose of familiarisation and in the capacity of observers only, and they shall not interfere in any respect with the operation of the Vessel. The Buyers and the Buyers' representatives shall sign the Sellers' P&I Club's standard letter of indemnity prior to their embarkation.
|
|
16.
|
Law and Arbitration
|
(a)*This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause.
|
|
The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced.
|
|
The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within fourteen (14) calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the fourteen (14) days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the fourteen (14) days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both Parties as if the sole arbitrator had been appointed by agreement.
|
|
In cases where neither the claim nor any counterclaim exceeds the sum of US$100,000 the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.
|
|
|
|
|
|
|
|
|
|
*16(a), 16(b) and 16(c) are alternatives; delete whichever is not applicable. In the absence of deletions, alternative 16(a) shall apply.
|
17.
|
Notices
|
All notices to be provided under this Agreement shall be in writing.
|
|
Contact details for recipients of notices are as follows:
|
|
For the Buyers: c/o Golden Ocean Group Limited, PO Box HM 1593, Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton, HM 08 Bermuda. For the attention of Per Heiberg.
|
|
For the Sellers: ___________
|
18.
|
Entire Agreement
|
The written terms of this Agreement comprise the entire agreement between the Buyers and the Sellers in relation to the sale and purchase of the Vessel and supersede all previous agreements whether oral or written between the Parties in relation thereto.
|
|
Each of the Parties acknowledges that in entering into this Agreement it has not relied on and shall have no right or remedy in respect of any statement, representation, assurance or warranty (whether or not made negligently) other than as is expressly set out in this Agreement.
|
|
Any terms implied into this Agreement by any applicable statute or law are hereby excluded to the extent that such exclusion can legally be made. Nothing in this Clause shall limit or exclude any liability for fraud.
|
|
/s/ Spyros Episkopou
|
/s/ Per Heiberg
|
For and on behalf of the Sellers
|
For and on behalf of the Buyers
|
Name: Spyros Episkopou
|
Name: Per Heiberg
|
Title: Director
|
Title: Attorney-in-fact
|
19. |
PAYMENT
|
19.1 |
The Purchase Price for the Vessel shall be settled in accordance with Clauses 19.2 and 19.3 below.
|
19.2 |
On Delivery of the Vessel:
|
(i) |
the Buyers shall procure that Golden Ocean Group Limited shall issue to Hemen Holding Limited ("Hemen") (an entity nominated by the Sellers) the number of shares set out under "Share Consideration" in Clause 19.3 below,;
|
(ii) |
the Sellers shall procure that Sterna Finance Limited shall enter into a seller's credit loan agreement (the "Loan Agreement") in the form set out in Appendix 1 of this Agreement, granting the Buyers a loan in respect of the Vessel in the amount set out under "Loan Amount" in Clause 19.3 below. The obligations of the Buyers under the Loan Agreement shall be guaranteed by Golden Ocean Holdings Limited; and
|
(iii) |
the Buyers shall pay to the Sellers in full free of bank charges to the Sellers' Account (i) the Cash Element set out under "Cash Element" in Clause 19.3 below, together with (ii) all other sums payable on delivery by the Buyers to the Sellers under this Agreement (i.e. bunkers, lubricating oils and other costs (if any) pursuant to Clause 7).
|
19.3 |
Payment Calculation:
|
1 Vessel Name
|
2 Share Consideration
Number of Shares to be issued by Golden Ocean Group Limited to Hemen
|
3 Loan Amount (USD)
|
4 Cash Element
|
Sea Monterrey
|
2,000,000
|
21,500,000
|
4,500,000
|
20. |
ASSIGNMENT
|
21. |
CONFLICT
|
For and on behalf of the Sellers
|
||
/s/ Spyros Episkopou
|
||
Name: Spyros Episkopou
|
||
Capacity: Director
|
||
For and on behalf of the Buyers
|
||
/s/ Per Heiberg
|
||
Name: Per Heiberg
|
||
Capacity: Attorney-in-fact
|
USD 21,500,000
LOAN AGREEMENT
dated __________ 2017
between
Golden Monterrey Inc.
as Borrower
Golden Ocean Holdings Limited
as Guarantor
and
Sterna Finance Limited
as Lender
|
||
www.bahr.no
|
CONTENTS
|
|
Clause
|
Page
|
1.
|
DEFINITIONS AND INTERPRETATION
|
3
|
2.
|
THE LOAN
|
5
|
3.
|
PURPOSE
|
5
|
4.
|
REPAYMENT
|
5
|
5.
|
REDUCTION, PREPAYMENT AND CANCELLATION
|
5
|
6.
|
INTEREST
|
6
|
7.
|
INTEREST PERIODS
|
6
|
8.
|
TAX GROSS UP AND INDEMNITIES
|
7
|
9.
|
REPRESENTATIONS AND WARRANTIES
|
8
|
10.
|
GENERAL UNDERTAKINGS
|
9
|
11.
|
EVENTS OF DEFAULT
|
9
|
12.
|
SET-OFF
|
11
|
13.
|
MISCELLANEOUS
|
11
|
14.
|
GOVERNING LAW AND JURISDICTION
|
12
|
(1) |
Golden Monterrey Inc, a company incorporated under the laws of Liberia with its registered address at 80 Broad Street Monrovia Liberia (the "Borrower"); and
|
(2) |
Golden Ocean Holdings Limited, a company incorporated under the laws of Bermuda with its registered address at Par La Ville Place, 14th Par La Ville Road, 4th Floor, Hamilton HM 08, Bermuda (the "Guarantor"),
|
(3) |
Sterna Finance Limited, a company incorporated under the laws of Bermuda with its registered address at Par La Ville Place, 14th Par La Ville Road, 4th Floor, Hamilton HM 08, Bermuda, and Registration Number 50970 (the "Lender").
|
(A) |
The Borrower has entered into a memorandum of agreement with Ikaros Shipowning Inc. to acquire the 2016 Daehan-built capsize vessel Sea Monterrey (IMO no. 9722429) (the "Vessel" and the "Monterrey MOA") at a purchase price of USD 43 million (the "Purchase Price");
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(B) |
it has been agreed that the Purchase Price for the Vessel shall be settled partly with shares in the Borrower's ultimate parent, Golden Ocean Group Limited, partly in cash and the remaining 50% of the Purchase Price shall be settled through a USD 21,500,000 seller's credit loan (the "Loan"); and
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(C) |
the Lender has agreed to grant the Loan to the Borrower on the terms and conditions of this Agreement.
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1. |
DEFINITIONS AND INTERPRETATION
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1.1 |
Definitions
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(a) |
any person, other than Hemen Holdings Limited and/or one or more companies controlled directly or indirectly with more than fifty per cent (50%) by trusts established by Mr John Fredriksen for the benefit of his immediate family ("Trusts"), or group of persons acting in concert, obtains more than fifty per cent (50%) of the voting rights or share capital or otherwise control the appointment of members of the board of directors of Golden Ocean Group Limited; or
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(b) |
Hemen Holdings Limited and/or one or more companies controlled directly or indirectly with more than fifty per cent (50%) by one or more Trusts ceases to own a minimum of twenty per cent (20%) of the voting rights or share capital or otherwise
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(a) |
the business, operation, assets or condition (financial or otherwise) of the Borrower; or
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(b) |
the ability of the Borrower to perform any of its obligations under the Agreement.
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(a) |
has direct or indirect control; or
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(b) |
owns directly or indirectly more than fifty (50) per cent (votes and capital),
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1.2 |
Construction
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(a) |
words denoting the singular number shall include the plural and vice versa; and
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(b) |
references to a "person" shall include any individual, firm, partnership, joint venture, company, corporation, trust, fund, body, corporate, unincorporated body of persons, or any state or any agency of a state or association (whether or not having separate legal personality); and
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(c) |
an Event of Default is "continuing" if it has not been remedied or waived.
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2. |
THE LOAN
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3. |
PURPOSE
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3.1 |
Purpose
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4. |
REPAYMENT
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5. |
REDUCTION, PREPAYMENT AND CANCELLATION
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5.1 |
Mandatory reduction – illegality
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(a) |
the Lender shall promptly notify the Borrower (specifying the obligations the performance of which is thereby rendered unlawful and the law giving rise to the same); and
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(b) |
the Borrower shall repay all amounts outstanding under this Agreement in full on the last day of the Interest Period occurring after the Lender has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Borrower (being no earlier than the last day of any applicable grace period permitted by law).
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5.2 |
Mandatory reduction – Change of Control
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5.3 |
Voluntary prepayment
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6. |
INTEREST
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6.1 |
Interest
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(a) |
Margin; and
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(b) |
LIBOR.
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6.2 |
Payment of interest
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6.3 |
Default interest
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7. |
INTEREST PERIODS
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7.1 |
Interest Periods
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(a) |
The Interest Period for the Loan is 3 months and the start of the first Interest Period is the day of Closing under the Monterrey MOA.
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(b) |
An Interest Period for the Loan shall not extend beyond the Maturity Date.
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7.2 |
Non-Business Days
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8. |
TAX GROSS UP
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8.1 |
Tax Gross-up
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8.2 |
Value added tax
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9. |
GUARANTEE AND INDEMNITY
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9.1 |
Guarantee and indemnity
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(a) |
guarantees to the Lender, as and for its own debt and not merely as surety, the due and punctual observance and performance by the Borrower's obligations under this Agreement;
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(b) |
undertakes with the Lender that whenever the Borrower does not pay any amount when due under or in connection with this Agreement, that Guarantor shall immediately on demand by the Lender pay that amount as if it was the principal obligor; and
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(c) |
indemnify the Lender immediately on demand against any cost, loss or liability suffered by the Lender if any obligation guaranteed by the Guarantor is or becomes unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount, which the Lender would otherwise have been entitled to recover.
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9.2 |
Continuing guarantee
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9.3 |
Number of claims
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9.4 |
Survival of Guarantor's liability
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(a) |
any time, waiver, consent, forbearance or other indulgence given or agreed by the Lender with the Borrower in respect of the Borrower's obligations under this Agreement; or
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(b) |
any legal limitation, disability or incapacity of the Borrower related to this Agreement; or
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(c) |
any amendments to or variations of this Agreement agreed by the Lender with the Borrower; or
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(d) |
the liquidation, bankruptcy or dissolution (or proceedings analogous thereto) of the Borrower; or
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(e) |
any other circumstance which might otherwise constitute a defence available to, or discharge of, the Borrower.
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10. |
REPRESENTATIONS AND WARRANTIES
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10.1 |
Power and authority
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10.2 |
Non-conflict with other obligations
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10.3 |
No misleading information
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(a) |
Any factual information provided by the Borrower was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.
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(b) |
The financial projections delivered to the Lender have been prepared on the basis of recent historical information and on the basis of reasonable assumptions.
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10.4 |
No proceedings pending or threatened
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10.5 |
Good title to assets
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10.6 |
Insolvency
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11. |
GENERAL UNDERTAKINGS
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11.1 |
Compliance with laws
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11.2 |
Disposals
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11.3 |
Change of business
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11.4 |
No mergers etc.
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11.5 |
Transactions with Affiliates
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11.6 |
Negative pledge
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11.7 |
Borrowings
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12. |
EVENTS OF DEFAULT
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12.1 |
Non-payment
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12.2 |
Other obligations
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(a) |
An Obligor does not comply with any provision of the Agreement (other than those referred to in Clause 12.1 (Non-payment); and
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(b) |
no Event of Default under (a) above will occur if the failure to comply is (in the reasonable opinion of the Lender) capable of remedy and is remedied within fifteen (15) Business Days of the earlier of the Lender giving notice to the Obligors or the Obligors becoming aware of the failure to comply.
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12.3 |
Misrepresentation
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12.4 |
Cross default
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(a) |
Any financial indebtedness of any of the Obligors or its Subsidiaries is not paid when due nor within any originally applicable grace period;
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(b) |
any financial indebtedness of any of the Obligors or its Subsidiaries 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);
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(c) |
any commitment for any financial indebtedness of the Obligors and its Subsidiaries is cancelled or suspended by a creditor of the Obligors as a result of an event of default (however described); or
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(d) |
any creditor of the Obligors or its Subsidiaries becomes entitled to declare any financial indebtedness due and payable prior to its specified maturity as a result of an event of default (however described);
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12.5 |
Insolvency and Insolvency proceedings
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(a) |
Any corporate action, legal proceedings or other procedure or step is taken in relation to the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any of the Obligors;
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(b) |
Any Obligor is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness;
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(c) |
the value of the assets of any of the Obligors is less than its liabilities (taking into account contingent and prospective liabilities);
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(d) |
a composition, compromise, assignment or arrangement with any creditor of any of the Obligors;
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(e) |
the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any of the Obligors or any of its assets; or
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(f) |
any analogous procedure or step is taken in any jurisdiction.
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12.6 |
Creditors' process
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12.7 |
Unlawfulness
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12.8 |
Acceleration
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(a) |
declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Agreement be immediately due and payable, whereupon they shall become immediately due and payable; and/or
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(b) |
declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Lender.
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13. |
SET-OFF
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14. |
MISCELLANEOUS
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14.1 |
No set-off by the Obligors
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14.2 |
Business Days
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(a) |
Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).
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(b) |
During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.
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15. |
GOVERNING LAW AND JURISDICTION
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(a) |
This Agreement shall be governed by and construed in accordance with Norwegian law.
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(b) |
Subject to paragraph (c) below, the courts of Norway shall have exclusive jurisdiction over matters arising out of or in connection with this Agreement with Oslo district court (Norwegian: tingrett) as agreed legal venue.
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(c) |
The submission to the jurisdiction of Norway shall not limit the right of the Lender to take proceedings against the Borrower in any court which may otherwise exercise jurisdiction over the Borrower or any of its assets.
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As Borrower:
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As Lender:
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Name:
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Name:
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Title:
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Title:
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Company: Golden Monterrey Inc.
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Company: Sterna Finance Limited
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Guarantor:
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Name:
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Title:
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Company: Golden Ocean Holdings Limited
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