Hoegh and PGN

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EX10.18
EX10.1827d701161dex1018.htmEX10.18
EXHIBIT10.18
SPECIFICTERMSINTHISEXHIBITHAVEBEENREDACTEDBECAUSECONFIDENTIALTREATMENTFORTHOSE
TERMSHASBEENREQUESTED.THEREDACTEDMATERIALHASBEENSEPARATELYFILEDWITHTHE
SECURITIESANDEXCHANGECOMMISSION,ANDTHETERMSHAVEBEENMARKEDATTHEAPPROPRIATE
PLACEWITHFIVEASTERISKS(*****).
EXECUTIONVERSION
AMENDMENTANDRESTATEMENTAGREEMENTOFTHEORIGINAL
LEASE,OPERATIONANDMAINTENANCEAGREEMENTdated25January,2012
between
PTPerusahaanGasNegara(Persero)Tbk
and
HeghLNGLtd.
Dated:17October2012
http://www.sec.gov/Archives/edgar/data/1603016/000119312514259959/d701161dex1018.htm
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EX10.18
ThisAmendmentandRestatementAgreement(Agreement)ismadeon17October2012between:
(1) PTPerusahaanGasNegara(Persero)Tbk,astateownedlimitedliabilitycompanydulyestablishedunderthelawsof
RepublicofIndonesia,havingitsprincipalofficeatJl.K.H.ZainulArifinNo.20,Jakarta1140,Indonesia(the
Company)and
(2) HeghLNGLtd.,alimitedliabilitycompanydulyorganizedandexistingunderthelawsofBermuda,havingitsprincipal
officeatCanonsCourt,22VictoriaStreet,HamiltonHM12,Bermuda(theOwner),
togetherthePartiesandeachaParty.
Recitals
A.
ThePartieshaveenteredintotheOriginalLOMAgreementinconnectionwiththedevelopmentoftheProjectatMedanin
NorthSumatra,Indonesia.
B.
InordertocomplywithadirectionfromtheGovernmentofIndonesiatoCompanytosituatetheProjectatLampungin
SouthSumatra,Indonesia,thePartieshaveagreedamendmentstotheOriginalLOMAgreementtogiveeffecttothe
GovernmentofIndonesiasdirection.
C.
ThePartieshaveagreedtoamendandrestatetheOriginalLOMAgreementinaccordancewiththetermsofthisAgreement.
OperativeProvisions
1.
INTERPRETATION
1.1 InthisAgreementthefollowingwordsandexpressionsshallhavethefollowingmeanings,unlessthecontextotherwise
requires.
EffectiveDateshallmeanthedateofsignatureofthisAgreement.
OriginalLOMAgreementmeanstheLease,OperationandMaintenanceAgreementandalloftheschedulesand
appendicesthereto,dated25January2012betweentheCompanyandOwner.
ProjectmeanstheMedanFSRFProjectinNorthSumatra,Indonesia.
RestatedLOMAgreementmeanstheOriginalLOMAgreementasamendedandrestatedbythisAgreementintheform
setoutinSchedule1.
2.
RESTATEMENTOFTHEORIGINALLOMAGREEMENT
1.2 WitheffectfromtheEffectiveDate,theOriginalLOMAgreementshallbeamendedandrestatedintheformsetoutin
Schedule1heretosothattherightsandobligationsofthePartiesshallbegovernedbyandconstruedinaccordancewiththe
provisionsoftheRestatedLOMAgreementasiftheOriginalLOMAgreementhadbeenexecutedintheformofthe
RestatedLOMAgreement.
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3.
EX10.18
GOVERNINGLAW
ThisAgreementshallhaveeffectasifClauses38.2and39oftheOriginalLOMAgreementweresetoutherein.
ThisAgreementisgovernedbyandistobeconstruedinaccordancewiththelawsandregulationsoftheRepublicofIndonesia.
4.
WAIVEROFCLAIMS
ByexecutingthisAgreementandbeingboundbythetermssetoutherein,thePartiesexpresslyagreethatanyclaim,liability,
dispute,oractiontheymayhaveagainsteachotherarisingbeforetheEffectiveDateoutoforinconnectionwiththeOriginal
LOMAgreement,isherebywaivedandextinguished.
INWITNESSWHEREOF,eachPartyhasexecutedthisAgreementonthedatefirstabovewritten.
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EX10.18
Schedule1
FormofAmended&RestatedLease,OperationandMaintenanceAgreement
FormofAmendedandRestatedSchedulestotheLease,OperationandMaintenanceAgreement
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EX10.18
EACHOFTHEUNDERSIGNEDHEREBYUNDERTAKESTHATITHASREADTHISAMENDMENTAND
UNDERSTANDSITSENGLISHCONTENTS,ANDTHATTHISAMENDMENTHASBEENENTEREDINTOFREELYAND
WITHOUTDURESSANDTHATINDEPENDENTLEGALADVICEHASBEENGIVEN.
Signedforandonbehalfof
/s/DJOKOSAPUTRO
Signature
DjokoSaputro
Name
Capacity
Date
SignedforandonbehalfofHeghLNGLtd.
/s/RAGNARWISLFF
Signature
RagnarWislff
Name
Capacity
Date
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EX10.18
EXECUTIONVERSION
AMENDED&RESTATEDLEASE,
OPERATION&MAINTENANCE
AGREEMENT
between
and
HeghLNGLtd.
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EX10.18
TABLEOFCONTENTS
CLAUSE
PAGE
1.
DEFINITIONSANDINTERPRETATION
2.
FSRULEASEANDMOORINGPROCUREMENT
25
3.
FSRULEASEPERIOD
32
4.
FSRU&MSPECIFICATIONSANDCHARACTERISTICS
34
5.
ALTERATIONSTOTHEFSRU&M
35
6.
DELIVERY,REDELIVERYANDCANCELLATION
38
7.
BUNKERSATDELIVERYANDREDELIVERY
44
8.
COMPANYTOPROVIDE
45
9.
OWNERTOPROVIDE
45
10.
CONDUCTOFFSRUSPERSONNEL
48
11.
FSRUTEMPERATUREANDLNGRETENTION
49
12.
HIRE
50
13.
PAYMENTSOFHIRE
50
14.
FSRUDEPLOYMENTANDOPERATION
52
15.
ASSIGNMENTBYOWNER
53
16.
ASSIGNMENTBYCOMPANY
54
17.
LOSSOFFSRU
55
18.
OFFHIRE
55
19.
SHIPTOSHIPTRANSFERS
56
20.
MAINTENANCE
56
21.
WARRANTYCOMPENSATION
57
22.
FSRU&MPERFORMANCEREVIEW
57
23.
INDEMNIFICATION
58
24.
LIENS
60
25.
FORCEMAJEURE
61
26.
DEFAULTANDREMEDIES
66
27.
SECURITY
72
28.
LAYINGUPANDRELOCATION
74
29.
CONDITIONSOFUSE
77
30.
INSURANCE
77
31.
BUSINESSPRINCIPLES
78
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EX10.18
32.
DRUGSANDALCOHOL
78
33.
POLLUTIONANDEMERGENCYRESPONSE
79
34.
CONFIDENTIALITY
79
35.
NOTICES
81
36.
PURCHASEOPTION
82
37.
EXPERTDETERMINATION
82
38.
LAWANDARBITRATION
84
39.
GOVERNINGLANGUAGE
85
40.
MISCELLANEOUS
86
Schedule1SpecificationsofFSRU
Schedule2FSRU&MPerformanceCriteriaandWarrantyCompensation
15
Schedule3CertificateofAcceptanceandCertificateofRedelivery
24
Schedule4Security
26
Schedule5Insurance
32
Schedule6HireRateandAdjustments
36
Schedule7OwnerPlannedMaintenanceSystem
53
Schedule8InformationtobeProvided
55
Schedule9NovationAgreement
72
Schedule10FinancingRequirements
83
Schedule11DeliveryProtocol
85
Schedule12PurchaseTerms
89
Schedule13NominationProcedure
94
Schedule14Consents
96
Schedule15TerminationAmountandAcquisitionAmount
98
Schedule16ConditionsofUse
104
Schedule17CompanySiteData
107
Schedule18O&MTerms
108
ii
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EX10.18
AmendedandRestatedLease,OperationandMaintenanceAgreementdated17October2012between:
Parties
(1)
PTPerusahaanGasNegara(Persero)Tbk,astateownedlimitedliabilitycompanyestablishedunderIndonesian
GovernmentRegulationsandhavingitsprincipalofficeatJl.K.H.ZainulArifinNo.20,Jakarta1140,Indonesia(the
Company)and
(2)
HeghLNGLtd.,acompanyestablishedunderthelawsofBermudaandhavingitsregisteredofficeatCanonsCourt,22
VictoriaStreet,HamiltonHM12,Bermuda(theOwner).
Recitals
A.
CompanyisamajoritystateownedIndonesiangastransportationanddistributioncompanythatisdevelopingaLNG
receivingterminaloffshoreLampung,inthesouthofSumatra,IndonesiaforwhichitrequiresuseofafloatingLNG
storageandregasificationunitandmooring.ThisagreementrecordsthetermsonwhichOwnershall(i)leasetoCompany,
andoperateandmaintain,afloatingLNGstorageandregasificationunit,and(ii)sellandoperateandmaintainamooring
system.
B.
ItisintendedthatbeforeAcceptancethepartieswillenterintotheNovationAgreementwithanAffiliateofInitialOwner
tobeincorporatedinIndonesia(thatAffiliate,theIndonesianOwner),whereuponIndonesianOwnershallbecome
Owner.
Operativeprovisions
1.
DEFINITIONSANDINTERPRETATION
1.1
Definitions
Wordsandexpressionsusedinthisagreementanditsrecitalsshallhavethefollowingmeanings,unlessthecontext
requiresotherwise:
26.3CancellationDate
hasthemeaninggiventothatexpressioninClause26.3(d).
50%AcquisitionTerms
hasthemeaninggiventothatexpressioninSchedule15.
meansaPersonnolesscreditworthythantheIndonesianOwner
GuarantorontheContractDate.
meansthefirsttooccurof(a)satisfactionofalltheAcceptance
Conditionsand(b)deemingofAcceptanceunderClause6.6(b),
6.9or26.3(e).
AcceptanceGuarantor
Acceptance
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EX10.18
AcceptanceConditions
hasthemeaninggiventothatexpressioninClause6.2.
AcceptanceMinimumRequirements
means,untilthereisagreementofAcceptanceTestsbytheparties
ortheirdeterminationbyanExpertunderClause2.6(c),thetests
thatGoodIndustryPracticerequirebeconductedoncetheFSRU
isattheMooringtoshowthattheFSRUmeetstheAcceptance
MinimumRequirementsinaccordancewiththeprocedures
agreedunderClause2.6(c)(i)(D)andtheDeliveryProtocol,
exceptfortestsinrelationtoBoilOffgasandthereafterthetests
soagreedordetermined.
means,inrelationtoanyPerson(thefirstmentionedPerson),
anyotherPersonthatdirectlyorindirectly,viaanynumberof
intermediaries,isControlledby,undercommonControlwith,or
ControlsthefirstmentionedPerson.
Alteration
AntiBriberyLaws
hasthemeaninggiventothatexpressioninClause31.1(b).
ApplicableAmount
meansafinancialinstitution(includingmultilateralagenciesand
exportcreditagencies)whoselongtermdebthasaratingofat
leastBBbyStandard&PoorsRatingServicesorBa2by
MoodysInvestorService,Inc.(or,ifeithersuch
AcceptanceTests
AcquisitionPrice
Affiliate
ApprovedBank
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EX10.18
agencychangesitsratingsystem,theequivalentsuccessorrating
appliedbysuchagencyatthetimeinquestion).
meansanirrevocablestandbyletterofcreditissuedbyan
ApprovedBank.
hasthemeaninggiventothatexpressioninClause38.2(f).
meansthetimethattheNoticeofReadinessisgivenin
accordancewithClause6.1.
meanseachday,exceptSaturdayandSunday,whenbanksare
generallyopenforbusinessinallof:Jakarta,IndonesiaNew
YorkSingaporeandOslo,Norway.
meansPTBiroKlasifikasiIndonesia(Persero),oranysuccessor
bodyofthesame.
meansthevapourwhichresultsfromvaporisationofLNGinthe
FSRUscargotanks.
BoilOffWarrantyCompensation
hasthemeaninggiventothatexpressioninPartCofSchedule2.
Builder
meansHyundaiHeavyIndustries,Co.,Ltd.
meanstheagreementbetweenOwnerandBuilderforthe
constructionoftheFSRU.
meansthedatefalling*****daysaftertheScheduledDelivery
Date,asitmaybepostponedunderClause6.5(b).
hasthemeaninggiventothatexpressioninsection2.1of
Schedule6.
meansthecertificateofacceptanceoftheFSRU&M,theformof
whichisattachedinPartAofSchedule3.
ApprovedLetterofCredit
ArbitrationLaw
ArrivalTime
BankingDay
BKI
BoilOff
BuildingContract
CancellationDate
CapitalElement
CertificateofAcceptance
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EX10.18
CertificateofRedelivery
meansacertificateofredeliverysubstantiallyintheform
attachedinPartBofSchedule3.
meansDNV,orsuchotherclassificationsocietythatismemberof
IACSasOwnernotifiesCompanyoffromtimetotime.
CommissioningLNG
hasthemeaninggiventothatterminClause6.10(a).
CompanyAlternation
CompanyBreachTermination
Agreement
hasthemeaninggiventothatexpressioninsection4ofPartAof
Schedule15.
CompanyCashCollateral
CompanyDelay
hasthemeaninggiventothatexpressioninClause6.5(a).
CompanyDelayEvent
CompanyLoC
CompanyLoCEndDate
CompanyRiskEvent
means:
Class
ClassificationSociety
(a)
CompanysfailuretocomplywiththeDeliveryProtocol
anyCompanyAlterationortheCompanysunreasonably
withholdingordelayingapprovalofanyAlterationunderClause5.4
(b)
(c)
anybreach,actofpreventionorinterference,oromissionthatprevents
orinterfereswithOwnersperformanceofthisagreement,by
4
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EX10.18
(d)
IndonesianGovernmentalFM
(e)
layingupoftheFSRUpursuanttoClause28
failureofCompanytoexecuteanddelivertheNovationAgreementin
accordancewithClause15.5
failureofanyLNGCarriertomeettheLNGCCompatibility
Requirements
(h)
CompanysbreachoftheEPCICAgreement
(i)
anychangein,orfailureordelayingiving,Nominationssubjectto
Section2.1(c)ofSchedule13,ornominationstoloadLNGunderthe
LNGTransferProcedure
(j)
anydelaycausedbyanactoromissionofCompanyinthedeliveryof
CommissioningLNGinasufficientquantityofLNGreasonably
requiredtopassAcceptanceTestsperformedinaccordancewiththis
agreement
(k)
anyinstructiongivenbyCompanytoRekayasatosuspendordelay
worksundertheEPCICAgreementexcludinganysuspensionordelay
duetothefaultofRekayasaorForceMajeure(asdefinedandunder
theEPCICAgreement)
(l)
anyfailureoftheDownstreamOfftakertotakesuchquantitiesof
RegasifiedLNGasOwnerisrequiredtodeliverduringAcceptance
Tests
(f)
(g)
Company,CompanysAffiliates(excludingRekayasa),the
Persons(otherthanCompanyoritsAffiliates)executingtheTug
Charter,oranyGSA,LNGCCharterparty,TerminalUse
AgreementorLNGSPAinconnectionwithperformancethereof,
orCompanyssubcontractors(excludingtheContractor(as
definedintheEPCICAgreement))inconnectionwith
performanceoftherelevantsubcontract(excludinganyactor
omissionpursuanttoexercisebytheCompanyofitsexpress
rightsunderthisagreement)
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EX10.18
(m)
thefailurestatedtobeaCompanyRiskEventinClause11.1(b)
(n)
theeventreferredtoinClause5.6
(o)
terminationoftheEPCICAgreementor
(p)
CompanytakingoverorprocuringaPersonotherthanRekayasato
performanypartoftheworkstobeperformedundertheEPCIC
Agreement.
meansthedatasetoutinSchedule17.
means,Company,CompanysAffiliates(excludingRekayasa),
eachPerson(otherthanCompany)executingtheTugCharterora
TerminalUseAgreement,eachDownstreamOfftaker,
Companyssubcontractors(excludingtheContractor(asdefined
intheEPCICAgreement)),andtheRepresentativesofeachofthe
foregoing.
meansRepresentativesfromtimetotimedesignatedassuchby
Company.
CompanysTerminationNotice
CompulsoryInsurances
meansconditionsofusesubstantiallyintheformofSchedule16
astheymayfromtimetotimebeamendedbyagreementofboth
parties.
meansthetermsofthisagreementandallotherdocumentsand
agreementscontemplatedthereby,togetherwithanyandalldata,
reports,records,correspondence,notes,compilations,studiesand
otherinformationrelatingtoorinanywayconnectedwiththis
agreementandallotherdocumentsandagreementscontemplated
thereby,thatarediscloseddirectlyorindirectlybyoronbehalfof
thedisclosingpartyoranyofitsRepresentativestothe
CompanySiteData
CompanysGroup
CompanysPersonnel
ConditionsofUse
ConfidentialInformation
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EX10.18
receivingpartyoranyofitsRepresentatives,whethersuch
informationisdisclosedorallyorinwriting.
meansallconsents,licences,andpermitsrequiredfromany
GovernmentalAuthorityforthelawfulperformanceofthis
agreement.
meansalllossofproduction,lossofprofit,lossofincome,lossof
goodwill,lossofbusiness,lossofanticipatedsaving,andany
special,indirectorconsequentialdamageorloss.
meansthedateofthisagreement.
meanstheperiodstartingwiththeDeliveryTimeandending
immediatelybeforethenextQuarter,eachcompletesuccessive
QuarterthereafterfallingfullyintheLeasePeriod,andtheperiod
(ifany)betweenthepenultimateContractQuarterandtheendof
theLeasePeriod.
meanstheperiodstartingwiththeDeliveryTimeandending
immediatelybeforethenextfollowingYear,eachcomplete
successiveYearthereafterfallingfullyintheLeasePeriod,and
theperiod(ifany)betweenthepenultimateContractYearandthe
endoftheLeasePeriod.
meansinrespectofanyPerson,theability(directlyorindirectly)
todirectthatPersonsaffairsand/orcontrolthecompositionofits
boardofdirectorsorequivalentbody,includingbymeansof(a)
theownershiporcontrol(directlyorindirectly)ofmorethan50%
ofthevotingsharecapitalofthatPersonor(b)theabilityto
directthecastingofmorethan50%ofthevotesexercisableat
generalmeetingsofthatPersononall,orsubstantiallyall,
mattersor(c)therighttoappointorremovedirectorsofthe
relevantPersonholdingamajorityofthevotingrightsat
meetingsoftheboard(or
Consents
ConsequentialLoss
ContractDate
ContractQuarter
ControlYear
Control
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EX10.18
equivalentbody)ofthatPersononall,orsubstantiallyall,
mattersandControlsandControlledshallbeconstrued
accordingly.
DelayLiquidatedDamages
DeliveryBunkers
hasthemeaninggiventothatexpressioninClause6.7(a)(iv).
DeliveryDate
meansthedayduringwhichtheDeliveryTimeoccurred.
DeliverTime
meansthetimewhenAcceptanceoccurs.
hasthemeaninggiventothatexpressioninsection1ofSchedule
2.
meansthetermsofSchedule11.
meansthetermsofPartBofSchedule1andtheCompanySite
DatainSchedule17.
DNV/IMOAlteration
DNV
meansDetNorskeVeritasoranysuccessorbodyofthesame.
DowngradeEvent
meanstheoccurrenceofthefollowinginrespectofanyPerson:
DeliveryPoint
DeliveryProtocol
DesignBasis
(a)
(b)
thattheseniorunsecuredlongtermdebtsecuritiesofthatPersonareat
aratingoflessthanBBbyStandard&PoorsRatingServicesor
Ba2byMoodysInvestorService,Inc.or,ifeitheragencychanges
itsratingsystem,theequivalentsuccessorratingappliedbysuch
agencyatthetimeinquestion.
DownstreamOfftaker
anInsolvencyEventor
meanseachPersonenteringintoaGSAorotherarrangement
withCompanyoritsAffiliatesunderwhichthatPersonreceives
RegasifiedLNGdeliveredbytheFSRU.
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EX10.18
DownstreamPipeline
meansthepipelinebetweentheMooringandtheshore,the
onshorereceivingfacility,andallotherpipelinesandfacilitiesto
beconstructedundertheEPCICAgreement.
meansanyclaim,option,charge(fixedorfloating),mortgage,
lien,pledge,equity,encumbrance,righttoacquire,rightof
preemption,rightoffirstrefusal,titleretentionoranyotherthird
partyright,oranyothersecurityinterestofanykindorany
agreementtocreateanyoftheforegoing.
meanstheagreementofthattitlebetweenCompanyand
Rekayasaasamendedandrestatedbythepartiesonthedateof
thisagreement,inconnectionwiththeengineering,construction,
installationorcommissioningofthepipelinethatjoinsthe
Mooring,andonshorereceivingandrelatedfacilities.
hasthemeaninggiventothatexpressioninsection3.1.4of
Schedule6.
EstimatedTaxLiability
EventofCompanysDefault
EventofOwnersDefault
ExerciseDate
means:
Encumbrance
EPCICAgreement
EstimatedO&MElementIncrease
(a)
1Juneinanyyearfallingonorafterthethirdanniversaryofthe
DeliveryDateexcludinganyanniversaryafterCompanysrightto
servenoticepursuanttoClause3.2or3.3hasexpiredwithoutbeing
exercisedor
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EX10.18
(b)
thedayonwhichthisagreementterminates(otherthanattheendof
theLeasePeriod)providedthatsuchdatedoesnotfallafter
CompanysrighttoservenoticepursuanttoClause3.2or3.3has
expiredwithoutbeingexercisedor
(c)
(d)
thelastdayonwhichCompanymayservenoticepursuanttoClause
3.2or3.3or
ifeitherpartyservesaTerminationAcquisitionNotice,anyday
fallingintheperiodstartingonthedateofsuchTermination
AcquisitionNoticeandending*****BankingDayslaterprovided
thatnoTerminationAcquisitionNoticemaybeservedafter
CompanysrighttoservenoticepursuanttoClause3.2or3.3has
expiredwithoutbeingexercised.
ExerciseNotice
Expert
ExtensionNotice
FinancingCosts
hasthemeaninggiventothatexpressioninClause2.12(c)(i)(C).
FinancingRequirements
FirstMonthlyInvoice
hasthemeaninggiventothatexpressioninClause13.1(a)(ii)(A).
FMRate
ForceMajeure
FSRU
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EX10.18
FSRUAssets
FSRUFinancing
FSRU&M
meanstheFSRUandtheMooring.
FuelConsumptionWarranty
Compensation
FuelPrice
hasthemeaninggiventothatexpressioninsection1.2of
Schedule6.
meanstheultrasonicmeteringsystemspecifiedinsection11of
PartAofSchedule1.
meansthedegreeofskill,diligenceandprudence,andthe
practices,methods,specificationsandstandardsofperformance,
allinaccordancewithapplicableLawsandcodes,thatare
generallyandreasonablyexpectedintheinternationalLNG
industryfor:(i)theconstruction,operation,maintenance,and
repairofLNGfloatingstorageandregasificationvessels(ii)
construction,operation,maintenance,andrepairofmooringsof
thetypeoftheMooring.
meansanynationorgovernment,anystateorpoliticalsub
divisionthereofandanyPersonexercisingexecutive,legislative,
judicial,regulatoryoradministrativefunctionsofanyofthe
foregoing(whetherautonomouslyornot)andshallincludeany
supranationalentityororganisation.
meanseachagreementfromtimetotimeenteredintoby
CompanyunderwhichRegasifiedLNGdeliveredbytheFSRU
willbesoldtoanythirdparty.
hasthemeaninggiventothatexpressioninPartCofSchedule2.
FullHireRate
GasMeteringEquipment
GoodIndustryPractice
GovernmentalAuthority
GovernmentalForceMajeure
GSA
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EX10.18
GuaranteedFlowRateModulation
GuaranteedRegasificationFlowRate
Hire
meansthesumspayabletoCompanyunderClause12.1.
HireRate
meanstheheadsofagreementdated6December2011between
Company,RekayasaandOwner(assubsequentlyamended).
meansthehullandmachineryinsurancereferredtoinsection1of
PartAofSchedule5.
meanstheInternationalAssociationofClassificationSocietiesor
anysuccessorbodyofthesame.
IMO
meanstheInternationalMaritimeOrganisation.
Indonesia
meanstheRepublicofIndonesia.
IndonesianGovernmentalFM
hasthemeaninggiventothatexpressioninClause25.1(f).
IndonesianOwner
hasthemeaninggiventothatexpressionintheRecitals.
hasthemeaninggiventothatexpressionintheNovation
Agreement.
meansHeghLNGHoldingsLimited.
meansallTax,dutyandimpostimposedbyanyIndonesian
GovernmentalAuthority.
HOA
HullandMachineryInsurance
IACS
IndonesianOwnerGuarantee
IndonesianOwnerGuarantor
IndonesianTaxes
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EX10.18
InitialLeasePeriod
InitialCompany
meanstheCompanyonthedateofthisagreement.
InitialOwner
meanstheOwneronthedateofthisagreement.
means,inrespectofanyPerson,inabilitytopaydebtasitfalls
due,bankruptcy,insolvency,windingup,dissolution,
administrationorliquidationofthatPerson(exceptforthe
purposesofamalgamationorreconstructioninsuchmannerthat
thePersonresultingtherefromeffectivelyagreestobeboundby
orassumetheobligationsimposedonthatPersonunderthis
agreement),orthemakingofanyarrangementorcomposition
withitscreditors,thetakingpossessionbyanencumbrancerofor
theappointmentofareceiveroradministrativereceiveroverthe
wholeoranysubstantialpartofthepropertyofsuchPerson,and
anyequivalentoranalogousprocedurebywhatevernameknown
inanyjurisdiction.
meansallrightsinanyletterspatent,design,registereddesign,
unregistereddesign,tradename,andtrademarks,copyright,and
allotherindustrialpropertyrightsandrightsinapplicationsfor
anyoftheforegoing.
hasthemeaninggiventothatexpressioninClause2.12(c)(i).
meansthosestandardsandpracticesfromtimetotimeinforce
applicabletotheownership,design,equipment,operationor
maintenanceoffloatingstorageregasificationunitsandberthing
andloadingfacilitiesforLNGtankerscallingatthem,including,
withoutlimitation,thoseestablishedbytheIMO,theOCIMF,or
SIGTTO(oranysuccessorbodyofthesame)and/oranyother
internationally
InsolvencyEvent
IntellectualPropertyRights
InterimMooringPayment
InternationalStandards
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EX10.18
recognisedagencyororganisationwithwhosestandardsand
practicesitiscustomaryforinternationaloperatorsofsuch
floatingstorageregasificationunitsorfacilitiestocomply.
meanstheinvitationtobidissuedbyCompanytoOwnerdated
31December2010withrespecttotheconstructionandoperation
ofaLNGregasificationterminalatBelawanport,Medan,North
Sumatra,Indonesia.
meansallthelawandregulations,includingalllaws,statute
legislation,notes,regulations,ordinances,orders,decrees,
judgments,injunctions,stipulations,writs,directives,Consentor
otherlicence,orexemption(includingtheconditionsthereto),
agreements,decisionsandnotificationsof,ortheinterpretationof
anyoftheforegoingby,anyGovernmentalAuthorityorcourtor
tribunalorregulatorycommissionorjudicialorquasijudicial
authorityhavingjurisdictionoverthematterinquestion.
Law24/2009
LayUpEntryEstimate
hasthemeaninggiventothatexpressioninClause28.3(a)(i).
LayUpEstimate
hasthemeaninggiventothatexpressioninClause28.3(a)(ii).
LayUpExitEstimate
hasthemeaninggiventothatexpressioninClause28.3(c).
LayUpPeriod
meansthecontinuousperiodcomprisingtheInitialLeasePeriod
andanyextensionpursuanttoClause3.2and/or3.3.
ITB
Law
LeasePeriod
LegallyRequiredAlteration
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EX10.18
LIBOR
meanstheLondoninterbankofferedrateforonemonthU.S.
dollardepositswhichappearsonReutersBBAPageLIBOR01
(orsuchotherpageasmayreplacethatpageforthepurposeof
displayingofferedratesofleadingbanksforLondoninterbank
depositsasaforesaid)asat11.00a.m.(Londontime)onthe
relevantdayprovided,however,thatifthisrateisnotavailable,
thenthearithmeticmeanoftheratesquotedbyReferenceBanks
for30dayU.S.dollardepositsatapproximately11.00a.m.
(Londontime)ontherelevantdayforvaluetwo(2)Banking
DayslaterinLondon,or,ifthisrateisnotavailable,therate
publishedontherelevantdateintheFinancialTimesatwhich
U.S.DollardepositswereofferedintheLondoninterbank
marketforaperiodofone(1)month,or,ifthisrateisnot
available,theratethenquotedbysuchbankasOwnerand
Companymayagreeorfailingwhichagreementsuchbankas
maybedeterminedbyanExpert.
meansnaturalgasliquefiedbycoolingandwhichisinaliquid
stateatornearatmosphericpressure.
meanseachLNGtankerthatistodeliverLNGtotheFSRU,orto
receiveLNGunderClause26.10(a)(ii).
meanseachagreementforthesupplyofLNGthatistobe
deliveredtotheFSRU.
hasthemeaninggiventothatexpressioninClause2.6(c)(i)(A).
meanseachcharterpartyforanyLNGCarriertowhichCompany,
oranyofitsAffiliates,isparty.
LNG
LNGCarrier
LNGPrice
LNGSPA
LNGCTransferProcedure
LNGCCharterparty
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EX10.18
LNGCCompatibilityRequirements
hasthemeaninggiventothatexpressioninClause2.6(c)(i)(C).
LoadingRateWarrantyCompensation
LoadingReferenceConditions
LoHAmount
meansthelossofhireinsurancereferredtoinsection2of
Schedule5.
meansallclaims,liabilities,obligations,losses,damages,
deficiencies,assessments,judgments,fines,penalties,
proceedings,actions,suits,demands,outofpocketcosts,
expensesanddisbursementsofanykindornatureexcept
ConsequentialLoss.
meansthemasteroftheFSRUfromtimetotimenotifiedto
CompanybyOwner.
MaximumDrydockingPeriod
MaximumTestedRegasificationFlow
Rate
meanstheregasificationflowrate(expressedinMMscfperday)
determinedpursuanttoClause6.9.
MMscf
LossofHireInsurance
Losses
LRACost
Master
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EX10.18
MonthlyInvoice
MonthlyInvoiceDueDate
meansthemooringsystem(togetherwithallassociatedhardware,
equipment,facilitiesandinfrastructurefoundation)tobe
installedattheSite,asmoreparticularlydescribedinthe
MooringSpecifications.
meansthecontractsunderwhichtheMooringistobe
engineered,procured,built,andcertified.
meansthedeclarationissuedbyClassificationSocietyinorderto
declarecomplianceoftheMooringwiththeMooring
SpecificationsandClassificationSocietysrequirements.
MooringInvoice
hasthemeaninggiventothatexpressionInClause2.12(d).
MooringPrice
meansthesumofUS$*****(exclusiveofIndonesianTaxes).
MooringSpecifications
meansthespecificationsinPartCofSchedule1.
meanseachnominationofRegasifiedLNGfordeliveryfromthe
FSRUinaccordancewiththeNominationProcedureand
Nominatedshallbeconstruedaccordingly.
NominationProcedure
NonGovernmentalForceMajeure
Schedule15.
Mooring
MooringContract
MooringDeclaration
Nomination
NonVesselFMTerminationAmount
NoRConditions
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EX10.18
NoticeofReadiness
NovationAgreement
NVNIGFM
hasthemeaninggiventothatexpressioninClause25.1(e).
NVNIGFMIncapacity
O&MTerms
meanstheOilCompaniesInternationalMarineForumorany
successorbodyofthesame.
OffHire
OffHireAllowance
OffHireCondition
OnHire
OperatingWindow
hasthemeaninggiventothatexpressioninClause6.9(b)
OperatingandMaintenanceElement
OperationalMinimumRequirements
meanstheInitialOwneruntiltheNovationAgreementis
executed,andthereaftershallmeantheIndonesianOwner.
Schedule15.
OCIMF
Owner
OwnerBreachTerminationAmount
OwnerCashCollateral
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EX10.18
OwnerLoC
OwnerLoCEndDate
OwnerPlannedMaintenanceSystem
meansthemaintenancesystemdescribedinSchedule7.
means,Owner,OwnersAffiliates,eachPersoncontractingwith
OwnerundertheBuildingContractorMooringContract,
Ownerssubcontractors(excludingtheContractor(asdefinedin
theEPCICAgreement)),andtheRepresentativesofeachofthe
foregoing.
OwnersTerminationNotice
OwnersSiteSurvey
meansasurveyoftheSiteprocuredortotheprocuredbyOwner.
meansaProtectionandIndemnityClubthatisamemberofthe
InternationalGroupofP&IClubs.
PercentageMargin
hasthemeaninggiventothatexpressioninClause2.12(c)(i)(D).
PerformancePeriod
meanseachContractQuarterduringtheLeasePeriod.
hasthemeaninggiventothatexpressionintheFinancing
Requirements.
meansanynaturalperson,legalperson,orcorporateor
unincorporatedbody(whetherornothavingseparatelegal
personality).
hasthemeaninggiventothatexpressioninClause33(a).
OwnersGroup
P&IClub
PermittedCreditor
Person
PollutionRegulations
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EX10.18
PreDeliveryTestingPeriod
meanstheperiodstartingonthe*****dayaftertheContract
DateandendingwiththeearlierofterminationoftheBuilding
Contract,completionoftheFSRUundertheBuildingContract,
andthetimethattheFSRUdepartstheShipyardfortheMooring.
meanstheseatrialandgastrialtobeperformedbytheBuilder
undertheBuildingContract.
PurchaseOption
PurchaseTerms
QA/QMSystem
meanseachperiodofthreeconsecutivemonthsstartingon1
March,1June,1Septemberand1December.
meanstheprincipalLondonofficesofBarclaysBankplc,orsuch
otherbanksthatPermittedCreditorsoftheFSRUFinancing
nominatetoOwnerfromtimetotime.
meansallmachineryandequipmentonboardtheFSRUforthe
regasificationanddischargeofregasifiedLNG,including
vaporisers,pumpsandmeteringunits.
PreDeliveryTests
Quarter
QuietEnjoymentAgreement
ReferenceBanks
RegasificationEquipment
RegasificationFlowRate
RegasificationFlowRateWarranty
Compensation
meanstheWarrantyCompensationdeterminedundersection1(b)
ofPartCofSchedule2.
RegasifiedLNG
meansgasproducedfromvaporisationofLNG.
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EX10.18
Registry
Rekayasa
meansPTRekayasaIndustri.
meansallmaterials,accessories,sparepartsandanyothergoods
inrespectoftheFSRU&Mnecessaryfortheperformanceofthis
agreementbyOwner.
means,withrespecttoanyPerson,eachdirector,officer,
employee,servant,consultant,agent,orrepresentativeofthat
Person.
hasthemeaninggiventothatexpressionintheDelivery
Protocol.
meansthedatewhichistheearlierof(i)1June2014or(ii)the
dateestimatedbyOwnerpursuanttoClause2.4(c)onwhichthe
FSRUwillarriveattheMooring,asitmaybepostponedunder
Clause6.5.
meansthedatefallingonthe*****dayafterissueoftheNotice
ofReadinessunderClause6.1,asitmaybepostponedunder
Clause6.5.
meanstheBuildersfacilitiesatwhichtheFSRUisunder
construction.
meanstheSocietyofInternationalGasTankerandTerminal
Operatorsoranysuccessorbodyofthesame.
Site
hasthemeaninggiventothatexpressioninPartBofSchedule1.
SpecificEventTax
hasthemeaninggiventothatexpressionInSchedule6.
Specifications
meanstheparticularsoftheFSRU&MsetoutinSchedule1.
RelevantItems
RelocationAlteration
Representative
ReliabilityTests
ScheduledArrivalDate
ScheduledDeliveryDate
Shipyard
SIGTTO
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EX10.18
StorageConditions
TankTemperatureCondition
hasthemeaninggiventothatexpressioninSection1of
Schedule2.
meansallformsoftaxationandstatutory,governmental,state,
provincial,localgovernmentalormunicipalimpositions,duties,
contributionsandlevies,ineachcase,inthenatureoftaxation
including(withoutlimitation),corporationtax,supplementary
charge,petroleumrevenuetax,incometaxes,prepaidincome
taxes,saletaxes,usetaxes,stampduty,transfertaxes,gross
incometaxes,valueaddedtaxes,socialcontributiontaxes,
employmenttaxes,governmentroyalties,customsduties,export
orimportduties,exciseduties,landandbuildingtaxes,
environmentaltaxes,andleviesandwithholdingtaxestogether
withallpenaltiesandinterestrelatingtheretoandanypenalties
andsurchargesinrespectoftheassociatedreportingrequirements
relatingtothemovementofgoodsandprovisionofservices,
whereverorwheneverimposed.
meanseachagreementtobeenteredintobetweenanythirdparty
andtheCompanyand/oranyofitsAffiliatespursuanttowhich
theFSRUisusedtostoreand/orregasifyLNGownedbyathird
party.
hasthemeaninggiventothatexpressioninparagraph1ofPartB
ofSchedule15.
hasthemeaninggiventothatexpressioninClause6.7(a)(v).
meansagreementstobeenteredintobyCompanywithathird
partypursuanttowhichCompanywillchartertugsandother
supportvesselsservingLNGCarrierscallingattheFSRU&M.
TaxorTaxes
TaxElement
TerminalUseAgreement
TerminationAcquisitionNotice
TestingFuelQuantity
TugCharter
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EX10.18
UmbrellaAgreement
meanstheagreementsoentitledbetweenthepartiesand
Rekayasa,asamendedandrestatedbythepartiesandRekayasa
onthedateofthisagreement.
US$or$
meansthelawfulcurrencyoftheUnitedStatesofAmerica.
VAT
VesselFM
hasthemeaninggiventothatexpressioninClause25.1(d).
VesselFMIncapacity
Schedule15.
VesselPollution
WarRisksAmount
meansthewarrisksinsurancereferredtoinsection4ofSchedule
5.
meanstheamountsdeterminedtobepayabletoCompanyin
accordancewithClause21.1andPartCofSchedule2.
meansinrespectofaday,theaggregateoftheCapitalElement
andOperatingandMaintenanceElementforthatday.
meansthatpartoftheLeasePeriodnotincludinganytime(a)
duringwhichtheOffHireConditionissatisfied(b)comprised
inanyLayUpPeriodor(c)inrespectofwhichthisagreement
providesnoWarrantyCompensationispayableunderClauses
3.5(e),5.5,6.918.2,25.2(a),25.7,26.3(c),26.10(a)(iii),28.1(b),
29andsection2.3ofSchedule13.
VesselFMTerminationAmount
WarRisksInsurance
WarrantyCompensation
WarrantyCompensationCap
WarrantyLiabilityPeriod
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EX10.18
WarrantyPerformanceRequirement
WilfulMisconduct
meanstheminimumstandardofperformancerequiredofOwner
suchthatnoWarrantyCompensationispayable.
meanseachperiodof12consecutivemonthsfromandincluding
DecemberuntilandincludingthenextfollowingNovember.
Year
1.2
Interpretation
(a)
Inthisagreement,exceptwherethecontextrequiresotherwise,referenceto:
(i)
anygenderincludesreferencetoallgendersandtothesingularincludesreferencetothepluralandvice
versa
(ii)
writingincludeswritinginfaxesandcognatetermsshallbeconstruedaccordingly
(iii)
aRecital,ClauseorScheduleistotherelevantrecital,clauseorscheduleofortothisagreement
andanyreferencetoaClauseshallincludereferencetoallsubclauses,paragraphsandsubparagraphs
containedtherein
(iv)
timesanddatesshallbeconstruedbyreferencetotheGregoriancalendarandreferencestotimeinthis
agreementshallbereferencestothetimeinJakarta,Indonesia,unlessotherwisespecified
(v)
includingmeansincluding,withoutlimitation,andcognatetermsshallbeconstruedaccordingly
andtheejusdemgenerisruleofconstructionshallnotapplytothisagreementandgeneralwordsshall
notbegivenarestrictivemeaningbyreasonoftheirbeingprecededorfollowedbywordsindicatinga
particularclassorexamplesofacts,mattersorthings
(vi)
thisagreementoranyotheragreementordocumentincludesreferencetosuchagreementordocumentas
varied,substituted,novatedorassigned
(vii)
thisagreementincludestheSchedules
(viii)
anEnglishlegaltermforanyaction,remedy,methodofjudicialproceeding,legaldocument,legalstatus,
court,officialoranylegalconceptorthingshall,inrespectofanyjurisdictionotherthanEngland,be
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EX10.18
(ix)
deemedtoincludeareferencetowhatmostnearlyapproximatestotheEnglishlegalterminthat
jurisdictionand
(x)
cancellationofanyletterofcreditincludesreleaseofthepartygivingitfromallobligationsunderthe
letterofcredit.
(b)
Clauseheadingsinthisagreementshallnotbetakenintoconsiderationintheinterpretationofthisagreement.
(c)
Expressionsinthisagreementappropriatetodirectors,officers,constitutionaldocumentsororgansofcompanies,
whenusedinrelationtoanyPersonofatypeotherthanacompany,shallbeconstruedasreferencestothemost
nearlycorrespondingpersons,officers,documentsororgans(asthecasemaybe)appropriatetoPersonsofthat
type.
(d)
IfthisagreementisexecutedintheEnglishandIndonesianlanguagesandthereisanydiscrepancybetweenthe
EnglishandIndonesianversions,theEnglishlanguageversionshallprevail.
(e)
Noprovisionofthisagreementshallbeinterpretedorconstruedagainstapartybecausethatpartyoritslegal
representativedraftedtheprovision.
2.
FSRULEASEANDMOORINGPROCUREMENT
2.1
Ownershall:
(a)
usereasonableendeavourstoprovidetoCompanypriortoAcceptancewithinareasonabletimeafterwritten
requestfromCompany:
(i)
suchinformationanddocumentationthatmayberequiredbyCompanyforpurposeofobtainingor
maintaininganyConsentinrespectoftheFSRU&M
(ii)
preliminarydraftsofoperatingproceduresinreasonabledetailincludingbutnotlimitedtothose
specifiedinsection1ofSchedule8and
(b)
within*****daysoftheContractDateprovideacopyoftheprojectscheduleinrespectoftheconstructionand
deliveryoftheFSRU&Mforinformationonly.
2.2
TheFSRUDescription
Thefloating,storage,regasificationunittobehiredforservicesunderthisagreementshallbethe170,000cubicmetre
classmembraneLNGfloatingstorageregasificationunitcurrentlyunderconstructionbytheBuilderforHeghLNGLtd.
withhullnumberHN2548(theFSRU).
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EX10.18
2.3
DocumentsandModel
OwnershallprovidetoCompany:
(a)
theinformationinsection2ofSchedule8bythetimespecifiedthereforinthatScheduleandanyrevisionor
replacementthereofassoonasreasonablypracticableand
(b)
onemodel(withascaleofnolessthan1:200)oftheFSRU,whichshallbeonboardtheFSRUonitsarrivalat
theMooringforthefirsttime.
2.4
ProjectProgressReportsandMonitoring
(a)
Fromthedateofthisagreement,OwnershallprovideCompanywithmonthlyreportsand,duringthe*****
monthsbeforethedatethatOwneranticipatesthattheFSRUwillarriveinthevicinityoftheSite,biweekly
reportskeepingCompanyreasonablyinformedof:
(i)
theprogressoftheconstructionoftheFSRU&M
(ii)
OwnerscurrentestimateofthedatesonwhichtheFSRUwillarriveatTangguhtoliftaCommissioning
Cargo(ifapplicable)andatLampung(whichestimatemayinclude,ifnecessary,areasonablerangeof
dates)
(iii)
OwnerscurrentestimateoftheDeliveryDate(whichestimatemayinclude,ifnecessary,areasonable
rangeofdates)and
(iv)
anyothermaterialdevelopmentsrelatingtotheFSRU&M,
andthefirstsuchreportshallbeprovidedbyOwner*****daysaftertheContractDate.
(b)
AfterreasonablenoticefromCompanyduringthePreDeliveryTestingPeriod,OwnershallmeetwithCompany
attheShipyardandMooringContractorspremises(totheextentBuilderandMooringContractoragree,andat
Companyscostand,exceptasprovidedinClause23,riskorataplacemutuallyacceptabletothepartiesforthe
purposeofinformingCompanyoftheprogressoftheconstructionoftheFSRU&M(andtheMooring
ContractorshallmeanthepersonsthathaveagreedwithOwnertobuildtheMooring).Ownershalluseits
reasonableendeavourstoprocureaccesstodocumentationrelevanttosuchmeetingsanditsbestendeavoursto
permitareasonablenumberofCompanysPersonneltobepresentforsuchpurposeprovidedthatanysuch
meetingsshalloccurduringordinaryworkinghoursandshallnotundulyobstructtheprogressofthe
constructionoftheFSRU&M.OwnershallcomplywithanyIndonesianLawrequiringthatarepresentativeof
anIndonesianGovernmentalAuthorityattendsuchmeetings.
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EX10.18
(c)
Beforethe*****daybeforetheFSRUleavestheShipyard,OwnershallnotifyCompanyofitsestimateofthe
earliestdatethattheFSRUwouldarriveattheMooring.
(d)
Notwithstandinganythingtothecontraryinthisagreementneithertheexercisenorthenonexerciseby
Companyofanyrighttomonitorworkoranyrightofinspectionorattendanceorotherwise(includingthe
receiptandreviewofanyplans,diagrams,drawings,specifications,manualsandotherdocumentation)in
relationtheretoshallinanywayaffectoraltereitherpartysobligationsorliabilitiesunderthisagreement.
2.5
NoticeofTests
OwnershallprovideCompanyatleast*****daysadvancenoticeinwriting:
(a)
ofeachofthePreDeliveryTestsandshallusebestendeavourstoprocurethattheBuilderpermitsareasonable
numberofCompanysPersonnel(atCompanyscostand,exceptasprovidedinClause23,risk)toattendthat
PreDeliveryTestand
(b)
ofeachoftheAcceptanceTestsandshallpermitareasonablenumberofCompanysPersonneltoattendallsuch
AcceptanceTests,
andOwnershallcomplywithanyIndonesianLawrequiringthatarepresentativeofanIndonesianGovernmental
AuthorityattendPreDeliveryTestsorAcceptanceTests.
2.6
TestsandProcedures
(a)
TestingpriortotheDelivery
OwnershallnotifyCompanyinwritingofeachofthefollowing,assoonaspracticableafteritsoccurrence:
(i)
thePreDeliveryTestshavebeencompletedandtheFSRUisinallrespectsreadytoproceedtothe
Mooringforpurposesofdeliveryunderthisagreementand
(ii)
theMooringDeclarationhasbeenissued,
andshallnotifyCompanyofOwnersreasonableestimationofthedateuponwhichtheFSRUwillbedelivered
totheMooringandwhenAcceptanceTestscanbegin.
(b)
RestrictiononVoyages
OtherthanthevoyagefromtheShipyardtotheMooringorasotherwiseagreedbytheparties,Ownershallnot
directorpermittheFSRUduringthetermofthisagreementtoperformanyvoyage.
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EX10.18
(c)
AcceptanceTestsandProcedures
(i)
Nolaterthan*****daysbeforetheScheduledDeliveryDate,thepartiesshallseektoagree:
(A)
theprocedurestobeusedforthetransferofLNGfromeachLNGCarriertotheFSRU,including
proceduresforthecoolingofthestoragetanksoftheFSRU(theLNGTransferProcedure)
(B)
theproceduresforthecoolingandstartingupoftheRegasificationEquipment
(C)
thespecificationsofLNGCarriers(includingphysicalcharacteristicsandrequirementsin
relationtoclassificationandinsurancecoverage)thatarecompatiblewiththeFSRU,as
determinedbythecompatibilitystudypreparedorprocuredbyOwner(theLNGC
CompatibilityRequirements)and
(D)
theAcceptanceTestsandtheproceduresforperformingtheminaccordancewiththeDelivery
Protocol,
failingagreementofeachofwhichthemattershallbereferredtoanExpertforresolutioninaccordance
withGoodIndustryPractice.
(ii)
Ownershallusebestendeavourstoprovidepreliminaryinformationregardingthetests,specifications
andproceduresreferredtoinClause2.6(c)(i)aboveassoonaspracticablefollowingsigningofthis
agreementbutshallinanyeventprovideCompanywithfirstdraftsofsuchtests,specificationsand
proceduresbeforethe*****daybeforetheScheduledDeliveryDate.
2.7
FSRUInspection
(a)
AfterAcceptancefromtimetotime,afterreasonablepriornotice,CompanyandCompanysPersonnel(andany
GovernmentalAuthorityrepresentative,ifsorequiredbyIndonesianLaw)mayinspectthosepartsoftheFSRU
asarereasonablyavailableforaccessandinspection(withoutinterferingwithorhinderingtheFSRUsnormal,
safeandefficientoperationandonlytotheextentpermittedbytheconditionsfortheISPSCertificate(security
certificate)),atareasonabletimeandatsuchreasonableintervalsasaremutuallyconvenienttotheparties.Such
inspectionsmayinclude,butneednotbelimitedto,accesstoandexaminationoftheFSRUshull,cargoand
ballasttanks,theRegasificationEquipment,compressorrooms,enginerooms,cargocontrolrooms,navigation
bridgeanddeckareasandanyplaceswheresparepartsarestored.Suchinspectionsmayalsoincludeaccessto
andtherighttoinspecttheFSRUsdeckandenginescrap/roughandfaircopy/officiallogbooks,allsuch
constructionandotherrecordsandschedules,recordsofsurveysbytheClassificationSocietyor
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EX10.18
(b)
conductedpursuanttoanyLaws(includingoftheRegistry),theFSRUsoperatingproceduresandanyother
documentationrelevanttosuchinspectionthatmaybeonboardtheFSRU.
(c)
Companyshallprocurethat:
(i)
eachinspectioncarriedoutbyCompanyunderClause2,7(a)shallbemadewithoutinterferenceor
hindrancetotheFSRUsorMooringssafeandefficientoperation,andshallbelimitedtoamaximumof
twoCompanyPersonnel(notincludinganyGovernmentalAuthorityrepresentative)ineachinstance
and
(ii)
CompanysRepresentativesconductinginspectionsunderClause2.7(a)oronboardtheFSRUforany
otherreasonshallcomplywiththelawfuldirectionsoftheMasterwhileonboardtheFSRUoronthe
Mooring.
2.8
FSRUClassification
AsanAcceptanceCondition,theFSRUshallbeclassedbytheClassificationSociety(Class).
2.9
FSRURegistry
(a)
StartingontheDeliveryDateandsubjecttoClause2.9(b),OwnershallcausetheFSRUtoberegisteredunder
theflagofIndonesiainthenameoftheOwnerandholdacertificateofregistry(GrosseAkte)issuedbythe
DirectorateGeneralofSeaTransportation(DirektoratJenderalPerhubunganLaut)(theRegistry)and
(b)
OwnershallprocurethatsuchRegistryismaintainedaftertheDeliveryDatethroughouttheLeasePeriod,
exceptasmayotherwisebeagreedbetweenOwnerandCompanyinaccordancewithClause40.4providedthat
ifIndonesianLawpermitsthattheFSRUbeotherthanIndonesianflagged,thentotheextentthatCompanys
obligationsandliabilities,includingtopayTax,theTaxElementorSpecificEventTaxes,arenotandwillnot
beincreasedthereby,OwnermaywithCompanysconsentregistertheFSRUwithacountryotherthan
Indonesia(eitherbeforeorafterAcceptance),whichconsentshallnotbeunreasonablywithheldordelayed.
2.10
NamingofFSRU
OwnershallprocurethattheFSRUisnamedinaccordancewithinstructionsreceivedfromCompanynotlaterthan1July
2012,providedthatCompanyshallhavefirstconfirmeditschoiceofnameisavailablefortheFSRUintheRegistryand
failingsuchinstructionsOwnermaynametheFSRUasitinitsdiscretiondetermines.IfCompanyproposesanameor
requiresanamechangeafter1July2012andthenameproposedisavailableintheRegistry,OwnerwillatCompanys
expensenameorrenametheFSRUinaccordancewithCompanysinstructions.
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2.11
EX10.18
ConsentsandImportation
(a)
SubjecttoClause25,eachpartyshallprocureeachConsentoppositeitsnameinSchedule14bythedatethat
Consentisrequiredtoensure:
(i)
thelawfulentryoftheFSRUandallRelevantItemsintoIndonesiaand
(ii)
thelawfulinstallationoftheMooringandtheoperationoftheFSRUinIndonesia,
andeachpartyagreesthat,ifitrequiresaftertheContractDateaConsentnotshownoppositeitsnamein
Schedule14inordertoperformitsobligationsunderthisagreement,itwillobtainsuchConsentrequiredtobe
initsname(andinOwnerscase,theIndonesianOwnersname),providetotheotheracopyofeachConsent
obtainedwithinareasonabletime,andwillusereasonableendeavourstoassisteachotherinobtainingall
Consents.
(b)
SubjecttoClauses2.11(a)and25andSchedule6,Ownershallprocuresatisfactionofallrequirementsofthe
relevantGovernmentalAuthoritiesinrelationtotheimportoftheFSRUandeachRelevantItemintoIndonesia,
includinginrelationtoanyandallimportlicences,importdeclarationsandexportregistrationsrelatingtothe
FSRUandallRelevantItems.
2.12
Mooring
(a)
OwnershallprocuretheMooringinaccordancewiththetermsandconditionsofthisagreement.
(b)
SubjecttoClause2.12(c),OwnermayinvoiceCompanyanamountequalto:
(i)
ninetypercent.(90%)oftheMooringPriceonorafterissueoftheMooringDeclarationand
(ii)
theremainingtenpercent.(10%)oftheMooringPriceonorafterAcceptance.
(c)
If,priortoissueoftheMooringDeclaration,AcceptancehasbeendeemedpursuanttoClauses6.6(b),6.9or
26.3(e):
(i)
SubjecttoClause2.12(c)(ii),OwnermayinvoiceCompanytheamount(theInterimMooring
Payment)equaltotheaggregateamountof:
(A)
allamountspaidorpayableundertheMooringContractasatthedateofsuchdeemed
Acceptance
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EX10.18
(B)
allotherreasonablecostsOwnerincurredorwhicharepayableinconnectionwiththeMooring
asatthedateofsuchdeemedAcceptance(includinganycostsofmaintenance,storageor
transport,butexcludingFinancingCostsandamountsunderClause2.12(c)(i)(A))
(C)
allreasonablecosts(FinancingCosts)Ownerincurredorwhicharepayableinconnection
withthefinancingoftheMooring(includingallinterest,costs,chargesorfees,excepttothe
extentarisingfromabreachbyOwnerunderitsfinancingagreements)and
(D)
theamountequaltotheproductofthePercentageMarginmultipliedbytheaggregateofthe
amountsreferredtoinClause2.12(c)(i)(A)andPercentageMarginmeanstheprofitmargin
(expressedasapercentage)OwnerwouldhavemadeontheMooringhadtheMooringContract
beenfullyperformedandthefullMooringPricepaidtoit,
andOwnershallhavenoobligationtodisclosetoCompanyanythingunderthisClause2.12(c)except
theaggregateamountoftheInterimMooringPayment
(ii)
Companymaybeforethe*****BankingDayafterreceivingOwnersInvoiceunderClause2.12(c)(i)
requirethatOwner,atCompanyssolecost,appointaninternationallyrecognisedfirmofaccountants
approvedbyCompany(suchapprovalnottobeunreasonablywithheldordelayed)toaudittheOwners
calculationoftheInterimMooringPayment,anddeterminethedifference(ifany)betweentheamount
invoicedunderClause2.12(c)(i)andtheaggregateamountreferredtointhatClauseand
(A)
iftheamountsoinvoicedexceedsthataggregateamount,Ownershallpaythatexcessto
Companyand
(B)
iftheamountofthataggregateamountexceedstheamountsoinvoiced,Companyshallpay
thatexcesstoOwner.
(iii)
OwnermayinvoiceCompanyanybalanceoftheMooringPricethatremainsafterpaymentoftheInterim
MooringPaymentandsumsunderClause2.12(c)(ii),onorafterissueoftheMooringDeclaration.
(d)
CompanyshallpayOwnertheamountofeachinvoicereceivedunderClause2.12(b)or2.12(c)(eachsuch
invoice,aMooringInvoice)inaccordancewithClause13.
(e)
Ownershallassignallofitsrights,title,andinterestinandtotheMooringtoCompanywithgoodtitleandfree
fromanyEncumbranceson:
(i)
receiptofallamountsinfullunderClauses2.12(b)or2.12(c)andOwnershallexerciseitsrightsunder
anywarrantiesitmayhaveundertheMooringContracttocausetheMooringContractortorectify
defectsintheMooringor
(ii)
ifthisagreementisterminatedbeforeAcceptance,Ownersreceiptinfullofanyamountspayabletoit
underClauses26.3and26.4andOwnershallpromptlytransfertoCompanyitsrightsunderany
warrantiesinrespectoftheMooringitmayhaveundertheMooringContract,providedthatOwneris
entitledtotransferthoserights(andsuchrightsarecapableoftransfer)toCompany.
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3.
FSRULEASEPERIOD
3.1
InitialLeasePeriod
TheInitialLeasePeriodshallbetheperiodstartingontheDeliveryDateandendingwiththe20thanniversaryofthe
DeliveryDate.
3.2
FirstExtensionPeriod
CompanymaygivenoticetotheOwner(theExtensionNotice)atanytimeonorbeforethedatefalling*****days
afterthe*****anniversaryoftheDeliveryDaterequiringextensionoftheLeasePerioduntilthedatespecifiedinthe
ExtensionNotice(whichdateshallbethetwentyfifthorthirtiethanniversaryofthedeliveryDate,asCompanymay
selectinthatnotice),andtheLeasePeriodshallcontinuefromtheendoftheInitialLeasePerioduntiltheanniversaryso
specifiedintheExtensionNotice.
3.3
SecondExtensionPeriod
IfCompanyhasexerciseditsrightspursuanttoClause3.2toextendtheLeasePeriodtothetwentyfifthanniversaryofthe
DeliveryDate,CompanymaygivenoticetoOwneratanytimeonorbeforethedatefalling*****daysafterthe*****
anniversaryoftheDeliveryDate,andtheLeasePeriodshallcontinueuntilthethirtiethanniversaryoftheDeliveryDate.
3.4
O&MOption
IfCompanyexercisesthePurchaseOption,itmayintheExerciseNoticerequirethatOwnercontinuetooperateand
maintaintheFSRUinaccordancewiththeO&MTermsfortheperiodfromtheCompletionDate(asdefinedinsection1.1
ofSchedule12)untilthe*****anniversaryofthatdate,whichperiodmaybeextendeduntilthe*****or*****
anniversaryofthatdatebyagreementbetweenthepartiesafterwhichnoticeeachpartyshallperformitsobligationson
termssubstantiallysimilartotheO&MTerms(includinga*****%marginonOwnerscost,includingmanagementfee)
andsubjecttofurtherdiscussionbetweentheparties.
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EX10.18
3.5
ExtensionDryDrydocking
(a)
IftheLeasePeriodisextendedunderClause3.2orClause3.3,Ownermayafterthe*****anniversaryofthe
DeliveryDate*****onlydrydocktheFSRU:
(i)
inaccordancewiththerequirementsofGoodIndustryPractice,Class,theRegistry,andLawand
(ii)
suchthattheperiodfromnoticeofcessationofserviceontheFSRUleavingtheMooringuntilnoticeof
resumptionofserviceunderClause3.5(b)doesnotexceedaperiodtobeagreedor,failingagreement,
determinedbyanExpertastheperiodreasonablyrequiredtocompletethedrydocking,returntothe
MooringandissueanoticeofresumptionofserviceinaccordancewithGoodIndustryPracticesuchthat
nofurtherdrydockingwouldberequiredduringtheLeasePeriod(theperiodsoagreedordetermined,the
MaximumDrydockingPeriod).
(b)
OwnershallgiveCompanyanotice(DrydockingNotice)specifying:
(i)
theestimatedperiodwhentheFSRUwillnotbeinserviceforthepurposesofscheduleddrydocking(the
DrydockingPeriod),whichshallnotstartbeforethe*****dayafterCompanyreceivesthe
DrydockingNoticeand
(ii)
theshipyardwheredrydockingwilloccur.
(c)
CompanyshallensurethattheFSRUisplacedatOwnersdisposalfordrydockingunderthisClause3.5,freeof
cargo,beforetheDrydockingPeriodstarts.
(d)
CompanyshallprovideandpayforallLNGrequiredinaccordancewithGoodIndustryPracticeforgassingup
andcoolingoftheFSRUattheMooringfollowingdrydockingunderthisClause3.5.
(e)
OwnershallnotbeliabletoCompanyforWarrantyCompensationandtheFSRUshallbeOnHireduringthe
periodfromwhentheOwnernotifiesCompanyitisceasingservicetoundertakedrydockingunderthisClause
untiltheearlierof(i)thecompletionofthedrydockingand(ii)theMaximumDrydockingPeriod.
(f)
OwnermayinvoiceCompany,andCompanyshallpayOwnerinaccordancewithClause13afterreceivingan
invoicetherefor,allcoststhatOwnerreasonablyincurstoundertakedrydockingunderthisClause3.5.
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EX10.18
4.
FSRU&MSPECIFICATIONSANDCHARACTERISTICS
4.1
OwnersWarranties
Itisagreedthat:(i)OwnershallpayWarrantyCompensationifrequiredbyClause21andSchedule2foreachperiod
duringwhichtheFSRUfailstomeettheWarrantyPerformanceRequirementduringtheWarrantyLiabilityPeriodand
(ii)theFSRUshallbeOffHireifitsatisfiestheOffHireConditionduringperiodsthatarenotwithintheOffHire
Allowance,ineachcasebecause,otherthanasaresultofanyCompanyRiskEventorForceMajeure:
(a)
theFSRU&MdoesnotcomplywiththeSpecifications,ortheFSRUisnotclassedbytheClassificationSociety
or
(b)
theFSRUshulldidnotattheScheduledDeliveryDatehaveafatiguelifeatleastuntilthe*****anniversaryof
theScheduledDeliveryDateor
(c)
theFSRUisnottight,staunch,strong,ingoodorderandconditionandfitforserviceunderthisagreement
includingforconditionsprevailingatandaroundtheMooring,withhermachinery,boilers,hull,cargostorage
system,andotherequipmentinagoodandefficientstateor
(d)
theFSRUstanks,valvesandpipelinesarenotfreeofdebrisorotherforeignmatterandliquidandgastight,
theFSRUdoesnothaveonboardallcertificates,documents,approvals,permits,permissionsandequipmentrequired
fromtimetotimebytheClassificationSocietyoranyLawasmayfromtimetotimebenecessarytoenabletheFSRUto
carryoutallrequiredoperations(includingloadingLNGanddischargingRegasifiedLNG)attheMooring.
4.2
ProspectiveNoticeofFailuretoMeetSpecifications
SubjecttoClause26.7,OwnerundertakestonotifyCompanyimmediatelyafterOwnerbelievesthattheFSRUwillor
mightnotachieveAcceptancebytheScheduledDeliveryDate,andshallpromptlythereafternotifyCompanyof:
(a)
theexpectedextentofvariationfromtheSpecificationsand
(b)
whatsteps,ifany,canbetakentorectifyorminimiseorcorrectsuchvariationandtheanticipatedimpactof
takingsuchstepsontheDeliveryTime.
4.3
MeasuringDevicesandSamplingSystems
OwnerentersintoitsobligationsinthefollowingprovisionsofthisClause4.3subjecttoClause26.7:
(a)
OwnershallequiptheFSRUwithtanksullagetables,gasmeteringsystem,gaugesanddevices(bothprimary
andsecondary)forsamplingtemperature,levelandpressureconformingtoGoodIndustryPracticeand
requirementsofClass.SuchtablesgaugesanddevicesshallwhiletheFSRUisOnHireduringtheLeasePeriod
beaccurateandreliableintheirpracticalapplicationinaccordancewithGoodIndustryPracticeand
requirementsofClass.
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EX10.18
(b)
Ownershallprocure:
(i)
testingtheaccuracyofthegaugesanddevicesreferredtoinClause4.3(a)and
(ii)
therecalibrationandrecertificationoftankgaugeullagetables,gaugesanddevices,
inaccordancewithGoodIndustryPracticeandrequirementsofClass.
(c)
IfanyoftheFSRUullagetables,gasmeteringsystems,gaugesanddevicesarefoundtobeincorrect,orifthe
accuracyofanypartfailstomeetapplicabletolerancesthenOwnershalltakeallnecessaryactionsrequiredby
GoodIndustryPracticetoremedytheincorrectnessorinaccuracy.
5.
ALTERATIONSTOTHEFSRU&M
5.1
Inthisagreement,Alterationmeans:
(a)
eachalteration:
(i)
totheFSRUor
(ii)
beforetheMooringPricehasbeenpaidunderClause2.12,totheMooring,
thatCompanymayfromtimetotimereasonablyrequestexceptchangescontrarytotherequirementsof
IndonesianLawortheFSRUsRegistryorClassificationSociety,orthatwouldpreventorhinderorincreasethe
costofperformanceofOwnersobligationsunderthisagreement
(b)
anyrelocationoftheFSRUrequiredpursuanttoClause28.4,includingthereturnoftheFSRUtoservicesatthe
MooringaftersuchrelocationinaconditionmeetingtherequirementsofIndonesianLaw,theFSRUsRegistry,
Class,IMOandtheSpecificationsofthisagreement,(whetherornotrequiringcapitalexpendituretobespenton
FSRU)(aRelocationAlteration)
(c)
eachalterationtotheFSRU&MrequiredbyanychangeinIndonesianLawortheimplementationthereofwhich
occursaftertheContractDate(eachsuchAlteration,aLegallyRequiredAlteration)and
(d)
eachalterationtotheFSRU&MrequiredbyanychangeintherequirementsoftheRegistry,theClassification
SocietyortheIMOwhichoccursaftertheContractDate.
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5.2
Ownershall,subjecttoClause5.3,makeorprocureeachAlterationtotheFSRUandtheMooringpursuanttothisClause
5,andOwnershallbear:
(a)
thecostofeachAlterationrequired:
(i)
byDNVtomaintainClassor
(ii)
bytheIMO,
(eachsuchAlteration,aDNV/IMOAlteration)
(b)
thefirstUS$*****ofLRACostitincursbeforethe*****ContractYear(andLRACostmeans,inrespectof
anyperiod,theaggregateof(i)allcostsincurredinthatperiodinperformingLegallyRequiredAlterationsthat
arenotalsoDNV/IMOAlterations,and(ii)theamountequaltothe*****and(iii)theamountofany*****)
and
(c)
thefirstUS$*****ofLRACostitincursinperformingLegallyRequiredAlterationsafterthe*****Contract
YearthatarenotalsoDNV/IMOAlterations,
butshallnotbearthecostofanyRelocationAlterationsoralterationsunderClause5.6,oranyAlterationtotheMooring
onoraftertheassignmentofOwnersright,titleandinterestintheMooringtoCompanyunderClause2.12(e).
5.3
ExceptasrequiredbyClause5.2,CompanyshallbearthecostofallAlterations(andeachAlterationforwhichCompany
istopayunderthisClause5.3shallbeaCompanyAlteration).
5.4
OwnershallassoonasreasonablypracticablesubmittoCompanyforCompanysapproval(whichapprovalshallnotbe
unreasonablywithheldordelayed)aproposalreasonablyinformingCompany:
(a)
foreachAlteration,thetimetableforitsperformanceand
(b)
foreachCompanyAlteration,alsooftheworktobeperformedtomaketheAlteration,wherethatworkistobe
performed,itscost,andtheEstimatedO&MElementIncrease,
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andshallconsultwithCompanyastothebestmannertomakesuchAlterationshavingregardtotheireffectonCompany
anditsaffairsprovidedthatifCompanywithholdsordelayssuchapprovalwithrespecttoanyAlterationandOwner
reasonablybelievesthatifthatAlterationisnotundertaken,theFSRU&M:
(c)
willormightnotbeincompliancewithapplicableLaws,includingrequirementsoftheRegistryor
(d)
willormightceasetobecertifiedforClass,
thenOwnermaymakethatAlterationinaccordancewithGoodIndustryPracticeandanydispute(i)astowhetherthat
Alterationwasrequiredforsuchcomplianceorcertification,or(ii)astoitscost,ortimetableforitsperformance,may
thereafterbereferredbyeitherpartytoanExpertfordetermination.
5.5
TheFSRUshallbeOnHireandnoWarrantyCompensationshallbepayableforeachperiodwhen,butforthisClause
5.5,theOffHireConditionwouldbesatisfiedorWarrantyCompensationwouldbepayableasaresultof:
(a)
undertakingCompanyAlterationsinaccordancewiththetimetablethereforapproved,ordeterminedbyan
Expert,underClause5.4or
(b)
theCompanysunreasonablywithholdingordelayingapprovalofanyAlterationor
(c)
thetimetakeninrespectofeachAlterationforExpertdeterminationunderClause5.4,unlesstheExpert
determinesthat:
(i)
theAlterationwasnotrequiredforcompliancewithLawsortomaintaincertificationforClass,or
(ii)
thatitscostshouldhavebeenlessoritstimetableforperformanceshorter,thanthatproposedbyOwner
underClause5.4.
5.6
IfthereisanydifferencebetweentheDesignBasisandtheOwnersSiteSurvey(includinggeophysicalandgeotechnical
data,metoceandataandseismicdata)whichcouldadverselyaffectOwnersriskofliabilityunderorcostofperforming
thisagreement,orforwhichGoodIndustryPracticewouldrequirethattheFSRUorMooringbealteredsoastoconform
totheSpecifications,itshallbeaCompanyRiskEventandanyalterationperformedshallbeaCompanyAlteration.
5.7
ExceptasotherwiseexpresslyprovidedinthisClause5OwnershallnotafterAcceptancemakeorpermittobemadeany
materialalterationtotheFSRUorMooringwithoutCompanyspriorwrittenconsent(suchconsentnottobe
unreasonablydelayedorwithheld).
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EX10.18
5.8
IfanyAlterationmadeortobemadeunderthisClause5preventstheFSRUorMooringfrommeetingtheAcceptance
MinimumRequirementsorOperationalMinimumRequirements,thepartiesshallseektoagree:
(a)
amendmentstotheAcceptanceMinimumRequirementsorOperationalMinimumRequirementstotheextent
requiredsuchthattheFSRU&MafterthatAlterationisabletosatisfythemand
(b)
anyamendmentreasonablyrequiredtobemadetothecalculationoftheWarrantyCompensationasa
consequenceofthatamendmentsuchthatWarrantyCompensationwouldnotbepayableincircumstancesin
whichitwouldnothavebeenpayablehadthatAlterationnotbeenmade,
failingagreementofwhichwithin*****dayseitherpartymayreferthemattertoanExpertfordetermination.
6.
DELIVERY,REDELIVERYANDCANCELLATION
6.1
FSRUDeliveryObligations
OwnershalldelivertheFSRUsafelyafloatattheMooringandmayissuenoticetotheCompany(theNoticeof
Readiness)onthesatisfactionofalltheNoRConditions,andtheNoRConditionsshallbethat:
(a)
theScheduledArrivalDateshallhaveoccurred
(b)
theFSRUissafelyafloatattheMooringandconnectedtotheMooringsoffloadingplatformthroughthe
FSRUsNGflexiblehoseand,iftheCommissioningLNGhasbeendeliveredtotheFSRU,isinallrespects
readytosendoutRegasifiedLNG
(c)
theDownstreamPipelineistiedintothepipelineendmanifoldontheMooringandisreadytoreceive
RegasifiedLNGinaccordancewithGoodIndustryPracticeand
(d)
theMooringDeclarationshallhavebeenissued.
6.2
AcceptanceConditions
TheAcceptanceConditionsshallbethat:
(a)
theFSRUisattheMooringandtheNoticeofReadinessshallhavebeenissuedinaccordancewithClause6.1
(b)
theAcceptanceTestsshallhavebeenagreedbythepartiesordeterminedbyanExpert,and,ineithercase,
passed
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EX10.18
(c)
theFSRUshallhavebeencertifiedbytheClassificationSocietyasinClass
(d)
OwnerisincompliancewithClause30.1andhasprovidedtoCompanythedocumentationandconfirmation
requiredtobeprovidedtopursuanttoClause30.1onorbeforetheDeliveryDateand
(e)
theNovationAgreementshallbeunconditionalinaccordancewithitsterms,
andifthereisanydisputeastowhetheranyAcceptanceConditionhasbeensatisfied,eitherpartymayreferthedisputeto
anExpert.
6.3
AcceptanceTestsandDeliveryTests
(a)
OwnershallassoonasreasonablypracticableafterCompanygivesnoticetoOwnerofCompanysreadiness
thereforstarttheAcceptanceTestsandshallpromptlyreporttheresultsoftheAcceptanceTeststoCompany.
(b)
Assoonasreasonablypracticable,butnotlaterthanthe*****daysaftertheAcceptanceConditionsare
satisfied,thepartiesshalleachsigntheCertificateofAcceptanceinaccordancewithClause6.7.
(c)
IfanyAcceptanceTestshowsthattheFSRUfailsinanywaytosatisfytheAcceptanceMinimumRequirements,
then,subjecttoClause26.7:
(i)
OwnermayundertakeorprocuresuchworkasitmayconsidernecessarytoensurethatAcceptance
MinimumRequirementsarepassedand
(ii)
untiltheCancellationDate,eitherOwnerorCompanymayrequirethattheAcceptanceTestberepeated,
subjecttothetermsoftheDeliveryProtocol.
6.4
LiquidatedDamages
(a)
SubjecttoClause6.5,itisagreedthat:
(i)
iftheArrivalTimeisnotachievedinaccordancewithClause6.1bytheScheduledArrivalDate,Owner
shallbeliabletopayliquidateddamages(DeliveryDelayLDs)toCompanythereforattherateof
US$*****perday(andproratainrespectofperiodsotherthanaday)fortheperiodaftertheScheduled
ArrivalDateuntiltheearlierofthefirsttime(ifever)thattheArrivalTimeoccurs,AcceptanceDelay
LDsbecomepayable,andthefirsttimeatwhichtheaggregateofDelayLiquidatedDamagespayable
underthisagreementequalsUS$10.7millionand/or
(ii)
iftheAcceptanceConditionsarenotsatisfiedbytheScheduledDeliveryDate,Ownershallbeliableto
payliquidateddamages(AcceptanceDelayLDs)toCompanythereforattherateofUS$*****per
day(andproratainrespectofperiodsotherthanaday)fortheperiodafterthe
(iii)
ScheduledDeliveryDateuntiltheearlierofthefirsttimeatwhichAcceptanceoccursandtheaggregate
ofDelayLiquidatedDamagespayableunderthisagreementequalsUS$10.7million,
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EX10.18
andtheaggregateamountofliquidateddamagespayableunderthisClause6.4(suchDeliveryDelayLDsand
AcceptanceDelayLDstogether,DelayLiquidatedDamages)shallnotexceedUS$10.7million.
(b)
ExceptasprovidedinClauses6.4(c)and26.5,OwnersobligationtopayDelayLiquidatedDamagesshallbeits
onlyliabilityandCompanysonlyremedyforOwnersbreachofthisagreementbeforeAcceptance,andthe
partiesagreethattheamountofDelayLiquidatedDamagesprovidedhereunderconstitutestheirgenuinepre
estimateofthelossthatwouldbesufferedbyCompanyasaresultofsuchbreach.
(c)
SubjecttoClause6.4(d),iftheobligationofOwnertopayDelayLiquidatedDamagesunderClause6.4(a)is
heldtobeunenforceable,OwnershallpayCompanydamagesnotexceedingUS$10.7millioninaggregatein
respectofallLossesandConsequentialLosssufferedbyCompanyarisingfromthefailuretoissuetheNoticeof
ReadinessonorbeforetheScheduledArrivalDateand/orthefailureofAcceptancetooccuronorbeforethe
ScheduledDeliveryDate(asapplicable).
(d)
TheamountofdamagespayableunderClause6.4(c)shallnotinaggregateexceedtheamountoftheDelay
LiquidatedDamagesthatwouldhavebeenpayablepursuanttoClause6.4(a)hadtherelevantobligationtopay
theDelayLiquidatedDamagesbeenenforceable,unlesssuchobligationisheldtobeunenforceableasaresultof
anyargument,claim,orproceedingraisedorbroughtbyOwnerthatsuchobligationisunenforceable,inwhich
casetheamountofsuchdamagesshallbeunlimitedbythisClause.
(e)
EachsumOwnerisobligedtopayunderthisClause6.4shallbepaidwithin*****BankingDaysofOwner
beinginvoicedtherefor,andCompanymayatanytimewhileanysumthatispayabletoitunderthisClause6.4
remainsunpaiddrawdownanamountequivalenttothatsumundertheOwnerLoC.
(f)
IfAcceptanceisachievedbytheScheduledDeliveryDate,orAcceptanceisdeemedunderClause6.9,Company
shall,within*****BankingDaysthereafter,reimburseOwnertheaggregateofallDeliveryDelayLDspaidto
CompanyunderthisClause6.4,theamountsdrawnundertheOwnerLoCinrespectofDeliveryDelayLDs
underClause6.4(e),anddamagespayableunderClause6.4(c)inrespectofthefailuretoachievetheArrival
TimeinaccordancewithClause6.1bytheScheduledArrivalDate.
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6.5
EX10.18
CompanyDelay
(a)
IfsatisfactionoftheNoRConditionsisdelayedasaresultoftheoccurrencebeforetheDeliveryTimeofanyof
thefollowingevents(eachsuchevent,aCompanyDelayEvent):
(i)
anyCompanyRiskEventor
(ii)
ForceMajeureor
(iii)
SecondScheduledCompletionDate(onthedatehereof,asdefinedintheEPCICAgreementonthedate
hereof)isamendedorextendedundertheEPCICAgreementtofallafter1July2014,
theScheduledArrivalDateshallbepostponedbytheaggregateofallCompanyDelay(andCompanyDelay
meansalldelay(withoutdoublecounting)insatisfyingtheNoRConditionsorAcceptanceresultingfromany
CompanyDelayEvent)and,inanyevent,CompanymayatitsdiscretionatanytimebynoticetoOwner
postponetheScheduledDeliveryDate.
(b)
TheScheduledDeliveryDateandCancellationDateshalleachbepostponedbytheperiodsequaltothe
aggregateofallCompanyDelaysoccurringbeforeit.
(c)
IfthereisCompanyDelayoccurringaftertheScheduledArrivalDatenoDelayLiquidatedDamagesshallbe
payableforthetimecomprisedinthatCompanyDelay.
(d)
CompanyshallpayOwnertheHireRateduringallCompanyDelayresultingfrom:
(i)
aCompanyRiskEventexcepttotheextentthatOwnerreceivedinsuranceproceedsfromLossofHire
Insuranceforthatdelayor
(ii)
NVNIGFMwhichdelaystheissueoftheNoticeofReadiness.
(e)
CompanyshallindemnifyOwneragainstalldirectcostsOwnerreasonablyincursduetoanyCompanyDelay
resultingfrom:
(i)
aCompanyRiskEventor
(ii)
NVNIGFMwhichdelaystheissueoftheNoticeofReadiness,
inconnectionwithperformanceofitsobligationsinrespectoftheMooringbeforesatisfactionofAcceptance
Conditions.
6.6
PreCancellationAcceptanceTestFailure
IffromtimetotimetheFSRUorMooringfailsanyAcceptanceTestbeforetheCancellationDate,Companymayby
noticetoOwner:
(a)
requirefurtherrepetitionofsuchAcceptanceTestand/or
(b)
accepttheFSRU&M,inwhichcaseAcceptanceshallbedeemedtohaveoccurredandthepartiesshallsigna
CertificateofAcceptanceinaccordancewithClause6.7.
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6.7
EX10.18
CertificateofAcceptance
(a)
ThepartiesshallassoonaspracticableaftersatisfactionoftheAcceptanceConditionsordeemingofAcceptance
underClause6.6orClause6.9recordinaCertificateofAcceptancesignedbyoronbehalfofOwnerand
countersignedbyCompany:
(i)
theDeliveryDate
(ii)
theDeliveryTime
(iii)
theplaceofAcceptance
(iv)
thequantityandspecificationofmarinedieseloilonboardonAcceptance(theDeliveryBunkers)
and
(v)
thequantity(theTestingFuelQuantity)ofLNGconsumed,regasified,asfuelforregasificationbythe
FSRUduringAcceptanceTesting(excludingduringReliabilityTests)thatisnotsoconsumedasaresult
ofCompanyRiskEventorForceMajeure(excludingVesselFM),providedthatLNGusedforgassingup
andcoolingdownoftheFSRUstanksshallnotcomprisetheTestingFuelQuantityandanydisputeas
towhatLNGwasconsumedasaresultofCompanyRiskEventorForceMajeure(excludingVesselFM)
maybereferredbyeitherpartytoanExpert.
(b)
SignatureoftheCertificateofAcceptanceshallnotaffectanyrightsorobligationsunderthisagreement,save
thattheCertificateofAcceptanceshallbeconclusiveevidencethatAcceptancehasoccurredandofthequantity
andspecificationofDeliveryBunkers,andtheTestingFuelQuantity.
6.8
Redelivery
(a)
TheFSRUshall,subjecttoClauses26.5and26.10,beredeliveredbyCompanytoOwnerattheMooringfreeof
LNGwithcargotanksunderinertsoraironexpiryoftheLeasePeriodorearlierterminationofthisagreementin
accordancewithitsterms.
(b)
TheCertificateofRedeliveryshallonsuchredeliverybecompletedandsignedbyOwnerandCompany
confirmingthedateandtimeofredeliveryandthequantitiesofbunkersonboardtheFSRUatthetimeof
redelivery.
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6.9
ProlongedCompanyRiskEvent
IfAcceptanceisdelayedinaggregatebymorethan*****daysduetoCompanyRiskEventorForceMajeure(excluding
VesselFM)occurringbeforetheCancellationDate,thenwitheffectonandfromthe*****dayofthatdelay:
(a)
AcceptanceshallbedeemedtohaveoccurredandthepartiesshallsignaCertificateofAcceptancein
accordancewithClause6.7.
(b)
OperatingWindowmeanstheperiodstartingonthedateofdeemedAcceptancepursuanttoClause6.9(a)or
26.3(e)andendingonthelatertooccurof:
(i)
Nominations,andnominationstoloadLNGundertheLNGTransferProcedure,havingbeenmadeand
fullysatisfiedforatleast100daysafterdeemedAcceptancepursuanttothisClause6.9orClause26.3(e)
(asthecasemaybe)and
(ii)
theFSRUhavingregasifiedLNGatarateofatleast45MMscfperdayforatleast4hourscontinuously.
(c)
Duringthefirst*****daysreferredtoinClause6.9(b)(i),theFSRUshallbeOnHireandnoWarranty
Compensationpursuanttoparagraphs1(b)and1(e)ofPartCofSchedule2shallbepayable.
(d)
Duringthelast*****daysreferredtoinClause6.9(b)(i),theOffHireregimeshallapplytoFSRU,andno
WarrantyCompensationpursuanttoparagraphs1(b)and1(e)ofPartCofSchedule2shallbepayable.
(e)
Ownershallhavenoliabilityunderparagraphs1(b)and1(e)ofSchedule2PartCuntiltheOperatingWindow
hasexpired.
(f)
AftertheOperatingWindowhasexpired,theGuaranteedRegasificationFlowRateshallbetheMaximum
TestedRegasificationFlowRatefromtimetotime.
(g)
TheMaximumTestedRegasificationFlowRateshall,subjecttotheotherprovisionsofthisClause6.9,be
98%ofthehighestRegasificationFlowRateatwhichtheFSRUhasoperatedfor4continuoushoursin
accordancewiththisagreement.
(h)
AftertheOperatingWindowhasexpired,theGCasreferredtoinparagraph1(e)ofSchedule2PartCshallbe
calculatedbyreferencetotheMaximumTestedRegasificationFlowRatefromtimetotimeandthegraphsetout
inparagraph10ofSchedule1PartA.
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EX10.18
(i)
IfOwnerfailstocomplywithaNomination(otherthanatasaresultofForceMajeureorCompanyRiskEvent)
onmorethan*****occasions,thepartiesshallmeettodiscussthereasonsfortheFSRUsunderperformance.If
theycannotagree,eitherpartymayappointanExperttodeterminewhytheFSRUhasfailedtoregasifytheLNG
attherateNominatedbyCompanyinaccordancewiththeNominationProcedure.
(j)
IftheExpertdeterminesthattherewerenotechnicaloroperationalreasonsfortheFSRUsfailuretodeliver
RegasifiedLNGattherateNominatedbyCompanyinaccordancewithClause6.9(g)for*****continuous
hours,itshallbedeemedtohavedoneso,andtheMaximumTestedRegasificationFlowRateandGCreferred
toinparagraph1(e)ofSchedule2PartCshallbeadjustedaccordingly.
6.10
CommissioningLNG
(a)
CompanyshallprovideLNGrequiredfortheAcceptanceTests(CommissioningLNG),andpayforsuch
LNG(excepttheTestingFuelQuantity),inaccordancewiththeDeliveryProtocol.
(b)
OwnershallusereasonableendeavourstoassistCompanyinsourcingCommissioningLNGanddeliveringitto
Lampung.
(c)
OwnershallpayfortheTestingFuelQuantityattheLNGPrice,withpaymentofsumsdueunderthisClause
6.10tobemadebydeductionfromsumsduetoOwnerunderMonthlyInvoices.
7.
BUNKERSATDELIVERYANDREDELIVERY
7.1
DeliveryandRedelivery
(a)
CompanyshallacceptandpayfortheDeliveryBunkersattheFuelPriceandamountsowedunderthis
Clause7.1(a)shallbeseparatelyitemisedinthefirstMonthlyInvoiceissuedafterAcceptance(ifitoccurs).
(b)
OwnershallonredeliveryacceptandpayattheFuelPriceforallbunkerscertifiedintheCertificateof
RedeliveryasonboardtheFSRUatthetimeofredelivery.
(c)
TheFSRUshallbedeliveredtoCompanyprovisionedwithmarinedieseloilatleastsufficientforreasonable
operationspriortotheScheduledDeliveryDate.
7.2
Gradeofbunkers
CompanyshallsupplymarinedieseloilwhosepropertiescomplywiththestandardforDMA.
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8.
EX10.18
COMPANYTOPROVIDE
8.1
CompanyshallprovidetoOwnernominationsofLNGforloadingontotheFSRUinaccordancewiththeLNGTransfer
ProcedureandNominationsinaccordancewiththeNominationProcedure.
8.2
SubjecttoClause18.1(c),aftertheDeliveryTime,Companyshallpaythecostof:
(a)
anymakeupofbunkerfuelsprovidedbyOwnerandalsoduringReliabilityTests
(b)
RegasifiedLNG(includingBoilOffgas)foruseasfuelfortheperformancebyOwnerofitsobligationsand
dutiesunderthisagreement
(c)
anyportcharges,pilotage,towage,mooring,Companysagencyfees,orcustomsorimportdutiesarisingin
connectionwitheachLNGCarrierandduties,leviesandTaxesrelatingtotheunloadingofeachLNGCarrier
(d)
allcostsandexpensesrelatingtoterminalsecurityrequiredinaccordancewiththeISPSCode(includingCCTV
systemifrequiredundertheterminalsecurityplanandifsorequired,OwnershallprovideaccesstotheFSRUto
CompanyPersonnelforthepurposesofinstallation,maintenanceandmonitoringofsuchsystem)and
(e)
fortheMooring,periodicmaintenance,repairs,insurance,inspectionsandsurveysbeyonddailyinspections
(includingdivinginspections)andcapitalspares.
9.
OWNERTOPROVIDE
9.1
Personnel
Allowance,ineachcasebecause,otherthanasaresultofanyCompanyRiskEventorForceMajeure,Ownerfailedto
provideshipboardpersonnelinaccordancewiththefollowingterms:
(a)
theFSRUshallhaveafullandefficientcomplementofMaster,officersandcrewforaFSRUofhertonnage,who
shallinanyeventbenotlessthanthenumberandnationalityrequiredbytheIndonesianLawandwhoshallbe
trainedtooperatetheFSRU&Mcompetentlyandsafely
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EX10.18
(b)
allshipboardpersonnelshallholdvalidcertificatesofcompetenceinaccordancewithIndonesianLaw
(c)
allshipboardpersonnelshallbetrainedandcertifiedtoastandardinaccordancewithGoodIndustryPractice
andInternationalStandardsand
(d)
thereshallbeonboardsufficientpersonnelwithagoodworkingknowledgeofwrittenandspokenEnglishto
enablealloperationsattheMooringtobecarriedoutefficientlyandsafelyandtoenablecommunications
betweentheFSRUandthoseloadingtheFSRUoracceptingdischargetherefromtobecarriedoutsafelyand
efficiently.
9.2
Duties
ItIsagreedthat:(i)OwnershallpayWarrantyCompensationifrequiredbyClause21andSchedule2foreachperiod
Allowance,ineachcasebecause,otherthanasaresultofanyCompanyRiskEventorForceMajeure:
(a)
itfailstoloadLNGinaccordancewiththeLNGTransferProcedureanddischargeRegasifiedLNGin
accordancewithNominationsactingatalltimesasareasonableandprudentoperator
(b)
itfailstooperateallequipmentcomprisedintheFSRU&M,includingtheRegasificationEquipment,inasafe
andpropermannerandasrequiredbyIndonesianLaw
(c)
itfailstokeepuptodaterecordsandlogsinaccordancewithGoodIndustryPractice
(d)
itfailstousereasonableendeavourstocooperatewithCompanytocomplywithandsatisfyanyrequirementsof
anyGovernmentalAuthority
(e)
itfailstostowLNGproperlyortokeepastrictaccountofallLNGloaded,BoilOffwhentheFSRUisin
StorageCondition,andRegasifiedLNGdischargedand
(f)
itfailstoexerciseduediligenceandGoodIndustryPracticetominimiseventingofBoilOff.
9.3
OwnerObligations
duringwhichtheFSRUfailstomeettheWarranty
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EX10.18
PerformanceRequirementduringtheWarrantyLiabilityPeriodand(ii)theFSRUshallbeOffHireifitsatisfiestheOff
HireConditionduringperiodsthatarenotwithintheOffHireAllowance,ineachcasebecause,otherthanasaresultof
anyCompanyRiskEventorForceMajeure,Ownershallhavefailedtoprovideandpayforthefollowingduringthe
LeasePeriod:
(a)
allprovisions,wages(includingbutnotlimitedtoallovertimepayments),anddischargingfeesandallother
expensesrelatedtotheMaster,officersandcrew
(b)
allinsuranceontheFSRU&MasdeterminedinaccordancewithSchedule5
(c)
alldeck,cabinandengineroomsparepartsandothernecessarystores,includingwaterandlubricatingoil
(d)
alldrydockinginemergencycases,maintenanceandrepairstotheFSRU&M(includingportcharges)
(e)
allfumigationandderatcertificates
(f)
allradiotrafficandothercommunicationequipment
(g)
alldeckand/organgwayorbasketwatchmenduringnightandday
(h)
sufficientlighting
(i)
nitrogengasandinertgasforinertingcargospaces
(j)
certificatescertifyingtesting,calibration,andmaintenanceofcranes,derricks,liftingbeams,pulleyblocks,
liftinggearandslings
(k)
tonnagecertificatesandClasscertificates
(l)
allcustomsorimportdutiesarisinginconnectionwithanyoftheforegoingand
(m)
subjecttoClauses2.11and25,allConsentsrequiredbyGovernmentalAuthoritiestobeinOwnersnamefor
theoperationoftheFSRU&MandperformanceoftheotherobligationsofOwnerunderthisagreement.
9.4
ProvisionforCompanyemployees
AtalltimesduringtheLeasePeriod,Owner,atitsowncost,shallprovideaccommodationforatleasttwoofCompanys
employeesresponsibleforcoordinatingterminaloperationsonshoreandoffshoreintheFSRUsavailableaccommodation
orsuchhighernumberasthepartiesmaymutuallyagree,andOwnershallprovidethem
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EX10.18
provisionsandallrequisitesasaresuppliedtoofficers,exceptalcoholandCompanyshallreimburseOwnerthecostof
suchprovisionsorrequisitesforeachsuchCompanyemployeewhileonboardtheFSRUaspartofHire.Whileonboard
theFSRU&M,eachsuchCompanyemployeeshallcomplywiththelawfulinstructionsoftheMasteratalltimes.
10.
CONDUCTOFFSRUSPERSONNEL
10.1
IfCompanyhasreasonablegroundstocomplainabouttheconductoftheMaster,oranyoftheofficersorcrew,Owner
shallassoonasreasonablypracticableinvestigatethecomplaint,andifthecomplaintprovestobewellfoundedOwner
shallassoonasreasonablypracticable:
(a)
takesuchactionasGoodIndustryPracticewouldrequire,including,ifnecessary,makinganychangeinthe
FSRUscomplementofMaster,officersandcrewand
(b)
shallcommunicatetheresultsofitsinvestigationtoCompanyassoonasreasonablypossible.
10.2
Ownerwarrantsthatitshallimplement,complywithandmaintainthroughouttheLeasePeriodaqualityassuranceand
qualitymanagementsystem(theQA/QMSystem),tobeinaccordancewithGoodIndustryPractice,International
Standards,andtheInternationalSafetyManagement(ISM)Code.TheQA/QMSystemshallcoverallmanagement
activitiesinrelationtotheFSRUanditsoperation,andincludeanHSSEprogramme.Ownershallsupplydocumentation
*****daysaftertheendofeachContractQuarterduringtheLeasePeriodconfirmingsuchmaintenanceoftheQA/QM
System.
10.3
OwnerfurtherundertakestoensurethatthroughouttheLeasePeriod,theFSRU&MshallhaveandOwnershallfully
complywiththefollowing,allinaccordancewithGoodIndustryPractice:
(a)
adocumentedsafeworkingproceduressystem(includingproceduresfortheidentificationandmitigationof
risks)
(b)
adocumentedenvironmentalmanagementsystemand
(c)
adocumentedaccident/incidentreportingsystemcompliantwiththerequirementsoftheRegistry.
10.4
OwnershalldeliverfromtheDeliveryDate:
(a)
within*****daysaftertheendofeverycalendarmonthduringtheLeasePeriod,monthlywrittenreports
detailingallaccidentsandincidentsand
(b)
within*****daysaftertheendofeverysecondContractQuarterduringtheLeasePeriod,awrittenreport
detailingallenvironmentalreportingrequirementsforthe
(c)
precedingtwoContractQuartersinaccordancewithreportingformatstobeagreedbytheparties.
10.5 OwnershallprocurethatHSSErecordsaremaintainedsufficienttodemonstratecompliancewiththerequirementsofthe
QA/QMSystem.
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11.
EX10.18
FSRUTEMPERATUREANDLNGRETENTION
11.1
LNGHeel
(a)
Forthepurposesofthisagreement,theFSRUshallsatisfytheTankTemperatureConditionwhentheaverage
temperatureofthebottomofeachcargotankintowhichLNGistobeloadedfromanLNGCarrierisnowarmer
than161Celsius,andeachtanksaveragevapourtemperatureisnowarmerthan130Celsius.
(b)
Companyshallberesponsible,inaccordancewiththeNominationProcedureandLNGTransferProcedure,for
managingthequantitiesofLNGretainedintheFSRUscargotanksafterAcceptanceinaccordancewithGood
IndustryPracticeinordertoensurethattheFSRU:
(i)
willatalltimessatisfytheTankTemperatureConditionand
(ii)
isfreeofLNGonexpiryoftheLeasePeriod,
andfailuresotomanagesuchquantitiesafterAcceptanceshallbeaCompanyRiskEvent,providedhowever
thereshallbenosuchfailureifatanytimeafterAcceptancetheFSRUfailstosatisfytheTankTemperature
ConditiondespitetheCompanyhavingmaintainedtheminimumquantityofLNGheelintheFSRUscargo
tanksthroughitsNominations.
(c)
Ownershall:
(i)
provideCompanywithuptodateandaccurateinformationregardingthequantitiesofLNGretainedin
theFSRUscargotanks(andOwnerandCompanyshallprocurethatRepresentativesofeachmeetafter
thedateofthisagreementandseektoagreehowtheCompanymightbeprovidedwithsuchinformation)
onarealtimebasisinthemannerdescribedinClause22.1(b)inaccordancewithGoodIndustryPractice
and
(ii)
permittheCompanysemployeesonboardtheFSRUpursuanttoClause9.4tomonitorsuchquantities
ofLNG.
11.2
CoolDown
SubjecttoClause18.1(c),CompanyshallprocureandpayforthesupplyofallLNGrequiredforgassingupandcooling
oftheFSRUtosatisfytheTankTemperatureConditionandtooperatetheFSRUinaccordancewithGoodIndustry
Practice.
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EX10.18
12.
HIRE
12.1
SubjecttoSchedule6andtheotherprovisionsofthisagreement,CompanyshallpaytheHireRatetoOwnerforalltime
comprisedintheperiodstartingattheearlieroftheArrivalTimeandAcceptanceandendingattheendoftheLease
Period,exceptfortimewhentheFSRUisOffHire(andtheFSRUshallbeOnHireforalltimesforwhichtheHireRate
ispayableunderthisClause12.1).
12.2
SubjecttoClause6.5,theCompanyshallpayOwnerforalltimecomprisedinanyCompanyRiskEventattheHireRate.
12.3
IfthisagreementisterminatedunderClause26.3(a)beforeAcceptance,allHirepaidshallberepaidtoCompanywithin
*****BankingDays,providedthatOwnershallnotbeobligedtorepaymorethan*****daysHireunderthisClause
12.3.
13.
PAYMENTSOFHIRE
13.1
Invoices
(a)
Ownermay:
(i)
inrespectofanyperiodofaCompanyRiskEventthatoccursinanycalendarmonth,submitinvoicesto
Companyatanytimeafterthatcalendarmonthand
(ii)
inrespectofanytimeafterArrivalTimemaysubmitinvoices(eachaMonthlyInvoice)toCompany
noearlierthan:
(A)
inrespectoftheHireforperiodfromtheArrivalTimeuntiltheendofthecalendarmonthin
whichtheArrivalTimeoccurs(theFirstMonthlyInvoice),theArrivalTimeandthereafter
(B)
inrespectofeachcalendarmonthsubsequenttothecalendarmonthinwhichtheArrivalTime
occurs,thefirstBankingDayofthatsubsequentcalendarmonth.
(b)
TheFirstMonthlyInvoiceshallbeaccompaniedby:
(i)
IndonesianTaxInvoice(FakturPajak)
(ii)
IndonesianTaxIdentificationNumber(NPWP)and
(iii)
IndonesianEntrepreneurTaxNumber(NPPKP).
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EX10.18
(c)
EachMonthlyInvoiceshallincludethefollowingInformation:
(i)
thedateandthenumberofdaysforwhichHireispayable
(ii)
theapplicableHireRate,CapitalElement,OperatingandMaintenanceElementandTaxElement,for
eachdayoftheperiodforwhichtheinvoiceissubmitted
(iii)
thegrossamountpayable(expressedinfiguresandinwords)
(iv)
subjecttoClause22.2,anydeductionfortheamountofWarrantyCompensation(ifany)dueandpayable
underClause21,togetherwithanysupportingcalculations,andanyamountspayabletoCompanyunder
section5.12ofSchedule6(ifany)
(v)
AnydeductionfortaxreceiptortaxdeductionalreadyreceivedbyOwnertoberepaidtoCompany
underSchedule6
(vi)
anyotheramountowedtoeitherpartybytheotherunderthisagreement,includinginterestdueunder
Clause13.3
(vii)
thedateandplaceofissueandserialnumberoftheMonthlyInvoice
(viii)
theserialnumberanddateofexecutionofthisagreement
(ix)
thenameandcodenumberofthebank,itsaddressandtheaccountnumbertowhichpaymentshouldbe
made
(x)
thenameofacontactpersonandsuchpersonsaddressandfaxnumber,inorderthatCompanymay
notifyOwnerthatpaymenthasbeenmadeand
(xi)
shallbeaccompanied,ifrequired,bytheIndonesianTaxInvoice(FakturPajak)inrespectofthat
MonthlyInvoice.
13.2
Invoices
Theamountsproperlydemandedinaccordancewiththisagreementin:
(a)
eachinvoicethatisnotaMonthlyInvoice,shallbepaidwithin*****BankingDaysafterreceiptbythe
CompanyofsuchinvoiceinaccordancewithClause13.1(c)
(b)
theFirstMonthlyInvoiceshallbepaidwithin*****BankingDaysafterreceiptbytheCompanyoftheFirst
MonthlyInvoiceand
(c)
eachMonthlyInvoicethereaftershallbepaidbeforethe*****BankingDayafterreceiptbytheCompanyof
thatinvoice,andeachdatebywhichpaymentsmustbemadeunderthisClause13.2istheMonthlyInvoice
DueDate.
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EX10.18
13.3
PaymentsandInterest
(a)
AmountsduetoOwnerunderthisagreementshallbepaidbyelectronictransferinimmediatelyavailablefunds
tosuchaccountwithsuchbankasshallhavebeendesignatedbythepayeeintherelevantinvoice.
(b)
Anypartythatfailstopayanyamountwhendueunderthisagreementshallpayinterestthereonaccruingfrom
thatdateuntilthedateitispaidattherateperannumequaltotheaggregateofLIBORand*****%.
13.4
VAT
AllamountsduetoOwnerhereunderareexpressedexclusiveofvalueaddedtax(VAT)thereon.Inaccordancewiththe
taxregulationsforVAT,VATmaybechargedbyOwneronthoseamountswhereapplicableandshouldbepaidin
accordancewiththeapplicableLaw.Ownershallalsoissuetaxinvoices(forexampleFakturPajak)inaccordancewith
thetaxregulations,forHireandotheramountspayabletoOwnerhereunder.
13.5
FuelandLNGPrices
Inthisagreement:
(a)
theFuelPricethatapartyisrequiredbythisAgreementtopayformarinedieseloilshallbe*****and
(b)
theLNGPriceforLNGornaturalgasvapoursshallbethe*****
13.6
BankingDays
AnypaymentwhichisduetobemadeunderthisagreementonadaythatisnotaBankingDayshallbemadeonthenext
BankingDay.
14.
FSRUDEPLOYMENTANDOPERATION
14.1
SafePlaces
Companydoesnotwarrantthesafetyofanyplace(includingthelocationoftheMooring).
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14.2
EX10.18
InstructionsandLogs
(a)
CompanyshallfromtimetotimegivetheMasternominationsofLNGforloadingontotheFSRUinaccordance
withtheLNGTransferProcedureandNominationsinaccordancewiththeNominationProcedure,andthe
MastershallkeepafullandcorrectlogoftheoperationsoftheFSRUwhichCompanyoritsagentsmayinspect
asrequired.
(b)
OwnershalleitherprocurethattheMastershallwhenrequiredfurnishCompanyoritsagentswithatruecopyof
suchlog,withproperlycompletedloadinganddischargingsheetsandsuchotherreportsasCompanymay
reasonablyrequireorCompanymaymakecopiesatOwnersexpenseofanysuchdocuments.
(c)
CompanywillappointoneRepresentativebynoticetoOwner(andmayreplacethatRepresentativeatanytime
bynoticetoOwner)togiveallnominationsforloadingofLNGandLNGloadingschedules,andNominations
forthedeliveryofRegasifiedLNGattheDeliveryPoint,andwhosecommunicationsshallbindCompany.
14.3
InterfacewithCompanysTerminal
(a)
ThepartiesacknowledgeandagreethattheFSRU&MshallbepartofaterminaloperatedbyCompany.
(b)
AfterAcceptance,thepartiesshallmeetinordertodiscussandendeavourtoagreeupontheintegrationofthe
operatingproceduresinrespectoftheFSRU&Mandtheoperatingproceduresoftheterminal.
(c)
Thepartiesshallusetheirreasonableendeavourstocomplywiththeoperatingproceduresagreedunder
Clause14.3(b)inaccordancewithGoodIndustryPracticeandapplicableLaws.
15.
ASSIGNMENTBYOWNER
15.1
ExceptaspermittedorrequiredunderClauses15.2,15.3,15.4,24.3andSchedule10,Ownermaynotassign,novateor
transfer,declareatrustover,ordealinanywaywith,anyofitsrightsorobligationsunderthisagreementorrights,title,or
interestinortotheFSRU.Ownermaydelegateobligationsunderthisagreementtoamanagerifthatwouldbein
accordancewithGoodIndustryPractice.
15.2
ProvidedthatOwnerremainsobligedtoperformthisagreement,OwnermaywiththepriorwrittenconsentofCompany
(suchconsentnottobeunreasonablywithheldordelayed)assignitsrightsunderthisagreementto:
(a)
HeghLNGLtd.or
(b)
anyAffiliateofHeghLNGLtd.,butonlyiftheassigneeremainsanAffiliateofHeghLNGLtd.throughout
thetermofthisagreement,
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EX10.18
andprovidedalwaysthatitshallinallcircumstancesbereasonableforCompanytowithholdconsenttoanysuch
assignmentifthatassignmentwouldormightresultinCompanysufferingorincurringanyLosses,ConsequentialLoss,or
Taxesthatitwouldnotsufferorincurweretherenosuchassignment.
15.3
OwnermaynovateallitsrightsandobligationsunderthisagreementtoanyAffiliatewhollyownedandwholly
ControlleddirectlybytheInitialOwner,providedthat:
(a)
OwnershallprovideaguaranteeandindemnitygivenbytheIndonesianOwnerGuarantorandinformand
substancesatisfactorytoCompany,actingreasonably,guaranteeingperformancebythatAffiliateofits
obligationsunderthisagreement
(b)
thatAffiliateis,andshallremain,whollyownedandwhollyControlledbytheInitialOwnerand
(c)
thenovationwillnotcauseCompanytoincuranyadditionalcost,Taxorotherliability.
15.4
Unlessthepartiesotherwiseagreeinwritingsignedbybothofthem,OwnershallbeforeAcceptanceprocurethattitleto
theFSRUisassignedtotheIndonesianOwner,andpromptlyaftersuchassignmentthattheIndonesianOwnershall,
executeanddelivertoCompanyanagreementsubstantiallyintheformsetoutinSchedule9(theNovation
Agreement).
15.5
CompanyshallexecuteanddelivertheNovationAgreementtoOwnerassoonasreasonablypracticableandinanyevent
within*****BankingDaysafterdeliveryofthatagreementtoitunderClause15.4.
15.6
OnexecutionoftheNovationAgreement,theIndonesianOwner,shallbecometheOwnerunderthisagreement.
16.
ASSIGNMENTBYCOMPANY
16.1
ExceptassetforthinthisClause16,Companymaynotassign,novateortransfer,declareatrustover,ordealinanyway
with,anyofitsrightsorobligationsunderthisagreement.
16.2
ProvidedthatCompanyremainsobligedtoperformthisagreement,Companymayassignitsrightsunderthisagreement
withthepriorwrittenconsentofOwner,suchconsentnottobeunreasonablywithheldordelayed,toanyAffiliateof
Company,butonlyiftheassigneeremainssuchanAffiliatethroughoutthetermofthisagreement,andprovidedalways
thatitshallinallcircumstancesbereasonableforOwnertowithholdconsenttoanysuchassignmentifthatassignment
wouldormightresultinOwnersufferingorincurringanyLosses,ConsequentialLoss,orTaxesthatitwouldnotsufferor
incurweretherenosuchassignment.
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16.3
EX10.18
CompanymaynovateallitsrightsandobligationsunderthisagreementtoanyAffiliatewhollyownedandwholly
ControlleddirectlybytheInitialCompanyif:
(a)
CompanyshallprovideaguaranteeandindemnitygivenbytheInitialCompanyandinformandsubstance
satisfactorytoOwner,actingreasonably,guaranteeingperformancebythatAffiliateofitsobligationsunderthis
agreement
(b)
thatAffiliateis,andshallremain,whollyownedandwhollyControlledbytheInitialCompanyand
(c)
thenovationwillnotcausetheOwnertoincuranyadditionalcost,Taxorotherliability.
17.
LOSSOFFSRU
17.1
DuringtheLeasePeriod,shouldtheFSRUbelost,thisagreementshallterminateandHireshallceasetobepayableatthe
timeofherloss,orifsuchtimeoflossisunknown,atthetimewhentheFSRUwaslastheardfrom.
17.2
ShouldtheFSRUbeaconstructivetotalloss,thisagreementshallbedeemedtoterminateatnoononthedateonwhich
theFSRUsunderwritersagreethattheFSRUisaconstructivetotalloss(unlessCompanyhaspreviouslyterminatedthis
agreementpursuanttoClauses25.5)andHireshallceasetobepayableatnoononthedaythatthisagreementterminates.
17.3
IfthisagreementterminatespursuanttothisClause17,CompanyshallhavenoliabilitytoOwnerpursuanttoClause
26.4.
18.
OFFHIRE
18.1
OffHire
(a)
ExceptwhentheFSRUisexpressedtobeOnHireunderClauses3.5(e),5.5,6.9(c),18.1(b),18.2(b),25.2(a),
25.7,26.3(c),26.10(a)(iii),28.1,28.2,29,foreachminuteafterAcceptanceduringwhichtheFSRUorMooring
failstosatisfyorisincapableofsatisfyinganyoftheOperationalMinimumRequirements,theFSRUshallbe
OffHireforthepurposesofthisagreementandnoHireshallbepayablebyCompanyfortimethattheFSRU
isOffHire.
(b)
TheFSRUshallbeOnHireatanytimethattheFSRUorMooringfailstosatisfyorisincapableofsatisfyingany
oftheOperationalMinimumRequirementsasaresultofanyCompanyRiskEventorForceMajeure.
(c)
Thecostofallfuels,LNGorvapourlostfromorconsumedbytheFSRUwhiletheFSRUisOffHirehereunder,
aswellasallchargesandotherexpensesofOwnerwhichareincurredbytheFSRUduringsuchperiod,
includingallcosts
(d)
relatedtotheoperationandmaintenanceoftheFSRU&M,shallbebornebyOwner.
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EX10.18
18.2
OffHireAllowance
(a)
ForthepurposesofthisClause18,theOffHireConditionshallbesatisfiedatanytimeduringwhich,butfor
thisClause18.2,theFSRU&MwouldbeOffHire.
(b)
NotwithstandingClause18.1,forthefirst*****hoursduringeachContractYearofayearsduration(andpro
ratainrespectofaContractYearofalesserduration)thattheOffHireConditionissatisfied(theOffHire
Allowance),theFSRUshallneverthelessbeOnHireandnotOffHireandnoWarrantyCompensationshallbe
payablebyOwnertoCompany,forthedurationofsuchOffHireAllowance.
(c)
NoOffHireAllowanceforanyContractYearmaybecarriedforwardtobeappliedinrespectofanyother
ContractYear.
18.3
Ownermaynot,underanycircumstances,tradetheFSRU&MforitsownaccountduringanyperiodofOffHire.
19.
SHIPTOSHIPTRANSFERS
AnyshiptoshipoperationsshallmeetorexceedthelatestpublishededitionoftheInternationalChamberofShipping
(ICS)/OCIMFShiptoShipTransferGuide(LiquefiedGases),ISGOTTsafetyguide,andanyotherrecommendation
publishedbySIGTTO.
20.
MAINTENANCE
20.1
SubjecttoClause28,OwnershallmaintaintheFSRU&MduringtheLeasePeriodinaccordancewithGoodIndustry
Practice,therequirementsofDNV,andtheOwnerPlannedMaintenanceSystem.Ownershallprovidetheoperatorofthe
DownstreamPipelinereasonableaccesstotheMooringforthepurposesofsuchoperatorprovidingmaintenanceonthe
DownstreamPipeline,andCompanyshallcoordinatewithOwnerandensurethatanysuchmaintenanceofthe
DownstreamPipelineisperformedwithoutinterferencewithorhindrancetotheFSRUsorMooringssafeandefficient
operationandthatitsoperatorandallitsRepresentativescomplywiththelawfuldirectionsoftheMasterwhileonor
accessingtheMooring.
20.2
TotheextentconsistentwithOwnersobligationsunderClause20.1,OwnerandCompanyshallusereasonable
endeavourstosynchronisetheperiodswhenOwnerundertakesmaintenanceunderClause20.1whichwouldormight
causetheFSRU&MtofailtomeettheOperationalMinimumRequirementsorresultinanobligationtopayWarranty
CompensationwithmaintenanceofCompanysfacilitiesthatreducesthecapacityofCompanytotakeRegasifiedLNGat
theDeliveryPoint.
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EX10.18
20.3
WithinareasonabletimeafterAcceptance,andthereafternolaterthan*****dayspriortothecommencementofeach
ContractYear,OwnershallprovideCompanywithanannualreportdetailingtheinventoryofmajorsparepartsonboard
theFSRUandtheproposedmaintenancethatOwnerintendstoundertakeduringthefollowingContractYearwhich
wouldormightcausetheFSRU&MtofailtomeettheOperationalMinimumRequirementsorresultinanobligationto
payWarrantyCompensation,andthescheduleforsuchmaintenance.
21.
21.1
SubjecttoClause21.2,OwnerundertakesthatitwillpayWarrantyCompensationinrespectoftheWarrantyLiability
PeriodifandtotheextentrequiredbyPartCofSchedule2,providedthatnoWarrantyCompensationshallbepayablein
respectofeachperiodforwhichthisagreementexpresslyprovidesthatnoWarrantyCompensationispayablebyOwner
underClauses3.5(e),5.5,6.9,18.2(b),25.2(a),25.7,26.3(c),26.10(a)(iii),28.1(b),29andsection2.3ofSchedule13.
21.2
TheaggregateamountofWarrantyCompensationotherthanFuelConsumptionWarrantyCompensationandBoilOff
WarrantyCompensationpayablebyOwnertoCompanyunderthisagreementinrespectofanydayshallnotexceedthe
WarrantyCompensationCapforthatday.
22.
FSRU&MPERFORMANCEREVIEW
22.1
FSRU&MPerformanceData
(a)
Ownershallwithin*****daysaftertheendofeachPerformancePeriodnotifyCompanyoftheamountof
WarrantyCompensationpayableinrespectofthatPerformancePeriod(ifany)andprovideorprocureprovision
ofallinformationtoCompanythatmayreasonablyberequiredtodeterminetheWarrantyCompensation
payable(ifany)toCompanyunderClause21andsuchdeterminationshallbemadeusinginformation
including:
(i)
statisticaldatasuppliedbytheMasterinthelogsprovidedbyCompany
(ii)
custodytransferdocumentationforeachcargoofLNGand
(iii)
readingsoftheGasMeteringEquipment,theFSRUsdailylogsandrecordsdocumentingthevolumeof
RegasifiedLNGdischargedbytheFSRU.
(b)
AfterAcceptance,OwnershallpermitCompanyonlineaccesstocertainFSRUoperationalandperformancedata
generallydescribedas:
(i)
pressure
(ii)
temperature
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(iii)
flowrateandshutdownvalvestatus
(iv)
fireandgasgeneralalarm
(v)
LNGlevelinstoragetanksand
(vi)
anyotherdataagreedbytheparties,
providedthatanyadditionalcostOwnerincurstoprovidesuchonlineaccessshallbeforCompanysaccount,
andCompanyshallpaysuchadditionalcostinaccordancewithClause13.
22.2
PerformanceClaimPayments
OwnershallpayanyWarrantyCompensationduetoCompanyunderClause21,inrespectofallbutthelastPerformance
Period,bydeductionfromamountsduepursuanttothenextfollowingMonthlyInvoice,andwithrespecttothelast
PerformancePeriod,within*****BankingDaysafterbeinginvoicedbyCompanythereforbypaymenttosuchaccount
asCompanyshalldesignate.
22.3
ClaimforFinalPeriod
Companysrightsunderclause22.2shallsurviveterminationofthisagreement.
23.
INDEMNIFICATION
23.1
PersonnelIndemnification
(a)
Ownershallbesolelyresponsiblefor,andshallprotect,defend,indemnifyandholdallmembersofCompanys
GroupharmlessfromandagainstanyLosses(includinglegalexpenses)arisingduringthetermofthisagreement
beforetheendoftheLeasePeriodoutofanyclaimsorcausesofactionforillnessorinjuriestoordeathofany
employeesofanymemberofOwnersGrouparisingoutoftheoperationoftheFSRUorMooringorinany
manneroccurringinconnectionwiththeFSRUorMooringorthisagreementandregardlessofwhethersuch
illness,injuryordeathiscausedinwholeorinpartbytheactive,passive,sole,jointorconcurrentnegligenceof
anymemberofCompanysGroup,strictliability,unseaworthiness,unairworthinessandincludingpreexisting
conditionsoranyothertheoryofliability.
(b)
Companyshallbesolelyresponsiblefor,andshallprotect,defend,indemnifyandholdallmembersofOwners
beforetheendoftheLeasePeriodoutofanyclaimsorcausesofactionforillnessorinjuriestoordeathofany
employeesofanymemberofCompanysGrouparisingoutoftheoperationoftheFSRUorMooringorinany
manneroccurringinconnectionwiththeFSRUorMooringorthisagreementandregardlessofwhethersuch
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illness,injuryordeathiscausedinwholeorinpartbytheactive,passive,sole,joint,orconcurrentnegligenceof
anymemberofOwnersGroup,strictliability,unseaworthiness,unairworthinessandincludingpreexisting
conditionsoranyothertheoryofliability.
23.2
PropertyofOwnerandCompany
(a)
Ownershallbesolelyresponsiblefor,andshallprotect,defend,indemnifyandholdmembersofCompanys
beforetheendoftheLeasePeriodoutofanyclaimsorcausesofactionfororinconnectionwithdamagetoor
lossoftheFSRU,theMooring(priortoassignmentofOwnersrights,titleandinterestintheMooringto
CompanyunderClause2.12),property,equipmentandmaterialsownedorleasedbyanymemberofOwners
Group,irrespectiveofthecausethereoforreasonthereforandregardlessofwhethersuchlossordamageis
causedinwholeorinpartbytheactive,passive,sole,jointorconcurrentnegligenceofanymemberof
CompanysGroup,strictliability,unseaworthiness,unairworthinessandincludingpreexistingconditionsor
anyothertheoryofliability.
(b)
Companyshallbesolelyresponsiblefor,andshallprotect,defend,indemnifyandholdallmembersofOwners
beforetheendoftheLeasePeriodoutofanyclaims,demands,suitsorcausesofaction,fororinconnectionwith
damagetoorloss,property,equipmentandmaterials(excepttheMooringpriortoassignmentofOwnersrights,
titleandinterestintheMooringtoCompanyunderClause2.12,ortheFSRU)ownedorleasedbyanymember
ofCompanysGroup,orLNGstored(exceptBoilOff),ontheFSRUorMooring,irrespectiveofthecause
thereoforreasonthereforandregardlessofwhethersuchlossordamageiscausedinwholeorinpartbythe
active,passive,sole,jointorconcurrentnegligenceofanymemberofOwnersGroup,strictliability,
unseaworthiness,unairworthinessandincludingpreexistingconditionsoranyothertheoryofliability.
23.3
Pollution
(a)
Ownershallbesolelyresponsiblefor,andshallprotect,defend,indemnifyandholdharmlessallmembersof
CompanysGroupfromandagainstanyandallLosses(includinglegalexpenses),arisingduringthetermofthis
agreementbeforetheendoftheLeasePeriodasaresultofanypollutionorcontaminationcreatedbyorarising
oremanatingfromtheFSRUorMooringortheoperationoftheFSRUorMooringinrespectofthisagreement
(VesselPollution)providedthatOwnersaggregateliabilityforeachaccidentoroccurrenceunderthis
Clause23.3shallnotexceedtheApplicableAmount.
(b)
Companyshallbesolelyresponsiblefor,andshallprotect,defend,indemnifyandholdharmlessallmembersof
OwnersGroupfromanyLosses(includinglegal
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expenses)arisingduringthetermofthisagreementbeforetheendoftheLeasePeriodinrespectofVessel
PollutioninexcessoftheApplicableAmount.IfOwnerhasanybasistobelievethatanypollutionor
contaminationaccidentoroccurrencemayresultinclaimsinexcessoftheApplicableAmount,itshallpromptly
notifyCompanyinwritingandCompanyshallbeentitled,butnotrequired,toparticipateinthehandlingand
defenceofanyclaims,demands,suitsorotherproceedings.
(c)
SubjecttoClause23.3(b),aswellastheprovisionsofClauses23.1and23.2,Companyshallberesponsiblefor
andshallprotect,defend,indemnifyandholdharmlessallmembersofOwnersGroupfromandagainstanyand
allLosses(Includinglegalexpenses),arisingduringthetermofthisagreementasaresultofanypollutionor
contaminationcreatedbyorarisingoremanatingfromordirectlyrelatedtotheoperationoftheDownstream
Pipeline,anyLNGcarrier,oranyvesseloperatingunderaTugCharter.
23.4
IndonesianTaxes
InrespectoftheperformanceofOwnersobligationsunderthisagreementrelatingtotheMooringarisingduringtheterm
ofthisagreementbeforetheendoftheLeasePeriod:
(a)
CompanyshallpayorbearallIndonesianTaxesinvoicedbyOwner,providedthatCompanyshallnotbeliable
topayorbearanypenalties,interest,surchargesorTaxespayableasaresultofnoncompliancewithapplicable
LawsbyanymemberofOwnersGroupand
(b)
anyliabilityforTaxes,otherthanIndonesianTaxes,shallbefortheOwnersaccount.
23.5
Survival
ObligationsaccruedduringthetermofthisagreementbeforetheendoftheLeasePeriodunderthisClause23shall
survivetheterminationofthisagreement.
24.
LIENS
24.1
OwnerLiens
Saveasprovidedinthenextfollowingsentence,Ownershallnothave,orallowothers(claimingthroughOwner)to
have,alienonanyLNGorfuelcarriedontheFSRUexcepttotheextentthatsuchlienarisesbyoperationofLaw.
24.2
CompanyLiens
Companyshallnothave,orallowothers(intheirdealingswithCompany)tohave,alienagainsttheFSRU,excepttothe
extentsuchlienarisesbyoperationofLaw.
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EX10.18
FSRU&MMortgage
(a)
OwnerundertakesthatexceptaspermittedunderClause24.3(b)orpursuanttoClause36:
(i)
itwillnot,followingexecutionofthisagreementandduringtheLeasePeriod,place,suffertoexistor
permitanymortgage,maritimeclaim,lienorEncumbranceontheFSRUand/or(aftertitleintheMooring
hasbeentransferredtoCompanyunderClause2.12)ontheMooring,orFSRUsearningsorinsuranceor
anychangeinthetermsofanypreviouslypermittedmortgage,maritimeclaim,lienorEncumbrance
withoutthepriorwrittenconsentofCompanywhichconsentshallnotbeunreasonablywithheldor
delayed,otherthanliens,maritimeclaimsandEncumbrancesarisingbyoperationofLaw(including
thosearisinginfavourofthecreworofroutinesupplierstoFSRU)orunderClause24.2and
(ii)
ifsuchliens,maritimeclaimsandEncumbrancessoarisebyoperationofLaw,Ownershalltakesuch
stepsasarereasonablynecessarytopreventanyactionbeingtakentoenforceanysuchliens,maritime
claimsandEncumbranceswhichwouldadverselyaffectCompanysrightsunderthisagreement.
(b)
NotwithstandingClause24.3(a),mortgages,maritimeclaims,liensandEncumbrancesandchangesintermsshall
bepermittedifforFSRUFinancing,andCompanyshallconsenttothemifeachofthePermittedCreditorsenters
intoaQuietEnjoymentAgreement.
(c)
CompanyundertakestocomplywiththeFinancingRequirements.
24.4
ReleaseofLien
IfanylienshallattachbyoperationofLaworinviolationofthisClause24,OwnerorCompany,asthecasemaybe,shall
takesuchstepsasreasonablynecessarytoensurethattheliendoesnotinterferewiththeFSRU&Msoperationsorwith
CompanysrighttotheFSRU&Manditscargoandtoeffectpromptreleaseofsuchlienpriortotheenforcementthereof.
25.
FORCEMAJEURE
25.1
Relief
SubjectalwaystoClause25.2,andunlessexpresslyprovidedotherwiseinthisagreement,nopartyshallbeliablefor
failuretoperformanobligationhereundertotheextentsuchfailureresultsfromForceMajeureand:
(a)
ForceMajeuremeansinrespectofaparty,anyeventorcircumstancebeyonditsreasonablecontroland
whichitcouldnotbytheexerciseofreasonablediligenceavoidormitigate,includingGovernmentalForce
MajeureandNonGovernmentalForceMajeure
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(b)
GovernmentalForceMajeuremeansoccurrenceofanyofthefollowingwhich,inrespectofeachparty
affectedbyit,isbeyondthereasonablecontrolofthatpartyandwhichitcouldnotbytheexerciseofreasonable
diligenceavoidormitigate:
(i)
actsoromissionsofprincesorrulersoractsoromissionsofanygovernmentalAuthority,includingany
changeinLaw,requisitionoftheFSRU&MbyaGovernmentalAuthorityandanyfailurebyany
GovernmentalAuthoritytoissue,amend,orrenew,anyConsentor
(ii)
anyoftheeventsspecifiedinparagraph(i)thatpreventperformanceof:
(A)
theEPCICAgreement,GSA,oranyLNGSPA,TerminalUseAgreement,LNGCCharterparty,
orTugcharteror
(B)
theBuildingContractorMooringContract
(c)
NonGovernmentalForceMajeuremeansoccurrenceofanyofthefollowingwhich,inrespectofeachparty
affectedbyit,isbeyondthereasonablecontrolofthatparty,whichitcouldnotbytheexerciseofreasonable
diligenceavoidormitigate:
(i)
war(whetherdeclaredorundeclared),hostilities,civilcommotions,revolutions,actofpiracy,actsof
terrorists,invasion,revolution,insurrection,actsofpublicenemies,riots,sabotage,blockadesor
embargoesor
(ii)
fire,explosion,collision,shipwreck,navigationalandmaritimeperilsor
(iii)
atmosphericdisturbance,lightning,earthquake,tidalwave,tsunami,typhoon,tornado,hurricaneor
namedstorms,flood,landslide,soilerosion,subsidence,washout,perilsoftheseaorotheractsofGod
except:
(A)
weatherconditionswhicharenormaloccurrencesforthetimeoftheyearandcanreasonablybe
expectedor
(B)
conditionsspecifiedintheSpecificationsor
(C)
plagueorotherepidemicsorquarantinesor
(iv)
chemicalorradioactivecontaminationorionisingradiation,or
(v)
anyoftheeventsspecifiedintheprecedingparagraphs(i)to(iv)(inclusive)thatpreventperformanceof:
(A)
EPCICAgreement,GSA,oranyLNGSPA,TerminalUseAgreementLNGCCharterparty,or
TugCharteror
(B)
theBuildingContractorMooringContract
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EX10.18
(d)
VesselFMmeansoccurrenceofNonGovernmentalForceMajeureresultinginphysicaldamagetotheFSRU
orMooringinrespectofwhichInsuranceproceedsarepayableundertheLossofHireInsuranceandHulland
MachineryInsuranceobtainedunderSchedule5
(e)
NVNIGFMmeansoccurrenceofForceMajeurethatisnotIndonesianGovernmentalFMorVesselFMand
(f)
IndonesianGovernmentalFMmeansoccurrenceofGovernmentalForceMajeurerelatingtoIndonesiaorany
IndonesianGovernmentAuthority.
25.2
HireduringForceMajeure
(a)
ExceptasprovidedinthisClause25.2,Clause25.1shallnotrelieveeitherpartyofanyobligationtomake
paymentunderthisagreement.Withoutlimitingthegeneralityoftheforegoingsentence,theFSRUshallbeOn
HireandnoWarrantyCompensationshallbepayableifitwouldbutforForceMajeurehavebeenOnHire
while:
(i)
aCompanyRiskEventorNVNIGFMdelaysAcceptanceor
(ii)
afterAcceptance,theFSRUand/orMooringfailstomeetOperationalMinimumRequirementsasaresult
ofForceMajeureor
(iii)
CompanyisunablelawfullytotakedeliveryofRegasifiedLNGatarateofatleast45MMscfperdayat
theDeliveryPoint.
(b)
CompanyshallpaytheFMRateforanytimethatasaresultofForceMajeuretheRegasificationFlowRateis
lessthanthatrequiredtomeetthequantityNominated.
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25.3
Notice,ResumptionofNormalPerformance
AssoonasreasonablypracticableaftertheoccurrenceofaneventofForceMajeurethatapartyconsidersmayprevent
performanceofanobligation,andinanyeventwithin*****daysfromthedatethatForceMajeureresultsinfailureto
performanobligation,thepartyaffectedshallgivenoticethereoftotheotherpartyreasonablyinformingitoftheForce
Majeureincludingdescribinginreasonabledetail:
(a)
theeventofForceMajeureassertedtohaveoccurredorthatmayoccur,includingbutnotlimitedtotheplace
andtimesucheventoccurredormayoccur
(b)
totheextentknownorascertainable,theobligationswhichmaybeorhavebeenpreventedandtheestimated
periodduringwhichsuchpreventionofperformancemightcontinue,includingtheextentofthefailurein
performanceand
(c)
theparticularsofaprogrammetobeimplementedtominimisetheeffectsoftheForceMajeureandresumefull
performancehereunder,
andsuchnoticesshallthereafterbesupplementedandupdatedatweeklyintervalsduringtheperiodinwhichitis
claimedthatForceMajeurepreventsperformancespecifyingtheactionsbeingtakentoremedythecircumstancescausing
suchForceMajeureandthedateonwhichtheeffectsofsuchForceMajeureend.
25.4
Examination
(a)
ThepartyaffectedbyaneventofForceMajeureshall,attherequestoftheotherparty,giveorprocureaccessif
theyareablesotodo(attheexpenseandriskofthepartyseekingaccess)atallreasonabletimesforareasonable
numberofrepresentativesofsuchotherpartytoexaminetheeffectoftheForceMajeure,
(b)
ThepartypreventedfromperformancebyForceMajeureshallresumeperformanceofthisagreementassoonas
reasonablypossible,includingdoingwhatGoodIndustryPracticewouldrequiretoexpeditethedeliveryof
componentsorparts.
25.5
TerminationforForceMajeure
(a)
If,duetoVesselFM,OwnerisunabletocomplywithNominations(VesselFMIncapacity)foratleast*****
daysafteritarises,thenCompanymayterminatethisagreementasfollows:
(i)
afterthatVesselFMIncapacityshallhavecontinuedforatleast*****days,Companymaywhilethat
VesselFMIncapacitycontinues(butnotafteritceases)givenoticetoOwnerthatshouldthatVesselFM
Incapacitycontinueforafurther*****daysfromthedateofthatnotice,Companyintendstoterminate
theagreementand
(ii)
afterthatVesselFMIncapacityshallhavecontinuedforatleastafurther*****daysafternoticegivenin
respectofitunderClause25.5(a)(i),CompanymaywhilethatVesselFMIncapacitystillcontinues(but
notafteritceases)terminatethisagreementimmediatelybyfurthernoticetoOwner.
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EX10.18
(b)
IfduetoNVNIGFM,OwnerisunabletocomplywithNominations(NVNIGFMIncapacity)foratleast
*****days,Companymayterminatethisagreementasfollows:
(i)
afterthatNVNIGFMIncapacityshallhavecontinuedforatleast*****days,Companymaywhilethat
NVNIGFMIncapacitycontinues(butnotafteritceases)givenoticetoOwnerthatshouldthatNVNIG
FMIncapacitycontinueforafurther*****daysfromthedateofthatnotice,Companyintendsto
terminatetheagreementand
(ii)
afterthatNVNIGFMIncapacityshallhavecontinuedforatleastafurther*****daysafternoticegiven
inrespectofitunderClause25.5(b)(i),CompanymaywhilethatNVNIGFMIncapacitystillcontinues
(butnotafteritceases)terminatethisagreementimmediatelybynoticetoOwner.
(c)
CompanymayterminatethisagreementbygivingnoticetoOwnerif,duetoNVNIGFM,thereshallhavebeen
NVNIGFMIncapacityduringperiodsequivalenttoatleast*****daysinaggregateintheperiodof*****
daysimmediatelyprecedingthatnotice,andthisagreementshallterminatewiththe*****dayafterthatnotice
unlessthatnoticeisbyfurthernoticewithdrawn.
25.6
TerminationforprolongedIndonesianGovernmentalFM
CompanymayterminatethisagreementbygivingnoticetoOwnerifthereshallhavebeenIndonesianGovernmentalFM
duringperiodsequivalenttoatleast*****daysinaggregateintheperiodof*****daysimmediatelyprecedingthat
notice,andthisagreementshallterminatewiththe*****dayafterthatnoticeunlessthatnoticeisbyfurthernotice
withdrawn.
25.7
OutbreakofWar
(a)
SubjecttotheotherprovisionsofthisClause25,intheeventofanoutbreakofwaraffectingorwithareasonable
prospectofaffectingOwner,FSRUorMooring,thepartiesshallmeettoseektoagreeameanstoprovideforthe
safelyingoftheFSRUandthecontinuedsafetyoftheMasterandcrew,subjecttoOwnercomplyingatalltimes
withthetermsoftheWarRisksInsuranceplacedinaccordancewithClause30.IftheFSRUsWarRisksinsurers
requireOwnertomovetheFSRUtoasafeplaceorberthinaccordancewiththetermsofitsWarRiskspolicy,
Ownershallbepermittedtocomplywithsuchinstructions,andtobringtheFSRUbacktotheMooringand
resumeoperationsunderthisagreementassoonasreasonablypracticable,andtheFSRUshallbeOnHireandno
WarrantyCompensationshallbepayableduringsuchtime.
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EX10.18
(b)
IftheMasterdeterminesthattheFSRUoritscreworcargoisinsuchperilthattheFSRUoritscrewoughttobe
moved,Ownershall(withoutinanywaylimitingtheMastersdiscretion)consultwithCompanyandMaster
maysomovetheFSRUoritscrewawayfromthevicinityoftheMooring,andtheFSRUshallremainOnHire
withnoWarrantyCompensationpayable,untilthetimethatOwnerreasonablyrequiresthecreworFSRUto
returntotheMooringandputtheFSRUbackintoserviceafterthatperilshallhavepassed.
26.
DEFAULTANDREMEDIES
26.1
EventofOwnersDefault
ItshallbeanEventofOwnersDefaultif:
(a)
anInsolvencyEventiscontinuingwithrespecttotheOwnerandhascontinuedunremediedforthe*****days
followingnoticefromtheCompanyor
(b)
aftertheIndonesianOwnerGuaranteeisdelivered:
(i)
anInsolvencyEventiscontinuingwithrespecttotheIndonesianOwnerGuarantorandhascontinued
unremediedforthe*****daysfollowingnoticefromtheCompanyand
(ii)
CompanyhasnotbytheendofthatdayreceivedareplacementIndonesianOwnerGuaranteegivenby
anAcceptableGuarantoror
(c)
Ownermakesanassignment,novation,transfer,ordeclarationoftrust,inbreachofitsobligationsunder
Clause15.1orbreachesClause24.3or
(d)
OwnercontinuesinbreachofanyobligationtoprovideanyOwnerLoCunderClause27formorethan*****
BankingDaysfollowingnoticefromtheCompanyor
(e)
OwnercontinuesinbreachofClause30.1toprocureandmaintaininsuranceandfailstoremedythatbreach
within*****daysfollowingnoticefromtheCompanyor
(f)
OwnercontinuesinbreachofClause31.1andfailstoremedythatbreachwithin*****daysfollowingnotice
fromtheCompanyor
(g)
withoutCompanyspriorwrittenconsent:
(i)
theOwnermakesorconsentstoamaterialchangetotheSpecificationsoftheFSRU&Mafter
Acceptanceor
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EX10.18
(ii)
theFSRUceasestoberegisteredunderthelawsoftheRegistry(orsuchothercountrywhereithad
otherwisebeenregisteredbymutualagreementoftheparties)or
(iii)
theFSRUceasestoholdaclassificationcertificatewiththeClassificationSocietyinaccordancewith
Schedule1,
andineachcase,Ownerfailstoremedythatbreachwithin*****daysfollowingnoticefromCompanyor
(h)
AcceptanceshallnothaveoccurredbytheCancellationDateotherthanasaresultofCompanyRiskEventor
suchlaterdateasCompanymaynotifyOwneror
(i)
onanydayduringtheLeasePeriodafterAcceptance,theFSRU&McontinuestobeOffHirehavingbeenOff
HireotherthanasaresultofanyForceMajeure,EventofCompanysDefault,orCompanyRiskEvent:
(i)
forthe*****consecutivedaysimmediatelyprecedingthatdayor
(ii)
for*****ofthe*****daysprecedingthatdayor
(j)
onanydayduringtheLeasePeriodafterAcceptance,RegasificationFlowRateWarrantyCompensation
continuestobepayable,havingbeenpayablebecausetheFSRUisunabletoregasifyatarateofatleast120
MMscfperdayotherthanasaresultofanyForceMajeure,EventofCompanysDefaultorCompanyRisk
Event:
(i)
forthe*****consecutivedaysimmediatelyprecedingthatdayor
(ii)
for*****daysofthe*****daysprecedingthatdayor
(k)
OwnerfailstopayamountsitowesunderClause23inexcessofUS*****,andsuchfailurecontinuesfor*****
daysfollowingnoticefromCompanyor
(l)
aftertheIndonesianOwnerGuaranteeisdeliveredundertheNovationAgreement,itbecomesandremains
unenforceableandOwnerfailstoremedythatbreachwithin*****daysfollowingnoticefromCompany.
26.2
EventofCompanysDefault
ItshallbeanEventofCompanysDefaultif:
(a)
onanyday,anInsolvencyEventiscontinuingwithrespecttotheCompanyandhascontinuedunremediedfor
the*****daysfollowingnoticefromtheOwneror
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(b)
CompanycontinuesinbreachofanyobligationtoprovideanyCompanyLoCunderClause27formorethan
*****BankingDaysfollowingnoticefromtheOwneror
(c)
CompanycontinuesinbreachofClause31.1andfailstoremedythatbreachwithin*****daysfollowingnotice
fromtheOwneror
(d)
Companymakesanassignment,novation,transfer,ordeclarationoftrust,inbreachofanyofitsobligations
underClause16.1orbreachesClause24.3(c)or
(e)
CompanyfailstopayamountsitowesunderClause23inexcessofUS$*****,andsuchfailurecontinuesfor
*****daysfollowingnoticefromOwneror
(f)
CompanyfailstopayanyamountwhendueinaccordancewithClause13.2andsuchfailurecontinuesfor
*****daysfollowingnoticefromOwner.
26.3
TerminationandSuspensionRights
(a)
AftertheoccurrenceofanyEventofOwnersDefault,CompanymaywhilethatEventofOwnersDefault
continuesterminatethisagreementbyissuingaterminationnoticegivingreasonableparticularsofthatEventof
OwnersDefault(CompanysTerminationNotice)withimmediateeffectand,ifrequestedtodosoby
Companybynotice,assoonasreasonablypracticableandincompliancewithsafetyandotherapplicable
regulations,OwnershallremovetheFSRUfromtheMooringunlesstheExerciseNoticeorTermination
AcquisitionNoticeshallhavebeenissued.
(b)
AftertheoccurrenceofanyEventofCompanysDefault,OwnermaywhilethatEventofCompanysDefault
continuesterminatethisagreementbyissuingaterminationnoticegivingreasonableparticularsofthatEventof
CompanysDefault(OwnersTerminationNotice)withimmediateeffect.
(c)
IfanEventofCompanysDefaultoccursunderClause26.2(f),OwnermaybynoticetoCompanywithout
liabilitysuspenditsperformanceofthisagreementandremainOnHirewithnoWarrantyCompensationpayable
whilethatEventofCompanysDefaultcontinues.
(d)
OwnermaynotifyCompanyofitsintentiontoterminatethisagreementunderClause26.3(f)whiletheNoR
ConditioninClause6.1(c)remainsunsatisfiedatanytimeonorafterthe26.3CancellationDateandthe
26.3CancellationDatemeanstheCancellationDateonthedateofthisagreementasitmaybepostponed
underClause6.5(b)forCompanyDelaysresultingfromCompanyDelayEventsunderClause6.5(a)(i)or
(ii)only,andnotastheCancellationDatemaybepostponedpursuanttoanyCompanyDelayEventunder
Clause6.5(a)(iii),attheCompanysdiscretionunderthelastparagraphofClause6.5(a),orotherwise.
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(e)
IfOwnerservesanoticepursuanttoClause26.3(d),Companymaywithin*****daysofthatnoticeissuea
noticestatingthatAcceptanceshallbedeemedtohaveoccurredand,witheffectfromreceiptofCompanys
notice:
(i)
AcceptanceshallbesodeemedtohaveoccurredandthepartiesshallsignaCertificateofAcceptancein
accordancewithClause6.7and
(ii)
theprovisionsofClauses6.9(b)to6.9(j)(inclusive)shallapply.
(f)
IfOwnerdoesnotreceiveCompanynoticepursuanttoClause26.3(e),thisagreementshallterminateonthe
*****dayafterOwnersnoticeunderClause26.3(d)andCompanyshall,within*****daysofthattermination,
payOwnertheOwnerBreachTerminationAmount.
(g)
TheprovisionsofClauses26.3(d)to26.3(f)(inclusive)surviveterminationofthisagreement.
(h)
NeitherpartymayterminatethisagreementexceptinaccordancewithClauses17,25.5,25.6,26.3and36.
26.4
TerminationPaymentsandNegotiationof50%AcquisitionTerms
(a)
IfthisagreementisterminatedunderClauses25.5or25.6forForceMajeure,thenCompanyshallpaytoOwner
within*****daysaftertheterminationofthisagreement:
(i)
ifterminationisforVesselFM,theVesselFMTerminationAmountor
(ii)
ifterminationisforIndonesianGovernmentalFMorNVNIGFM,theNonVesselFMTermination
Amount.
(b)
IfthisagreementisterminatedbyOwnerforanyEventofCompanysDefault,then,Companyshallwithin
*****daysofthatterminationpayOwnertheCompanyBreachTerminationAmount.IftheCompanyBreach
TerminationAmountisnotpaidastheAcquisitionPrice,itshallbepaidasliquidateddamagesandasotherwise
specifiedinSchedule15.Subjecttothenextfollowingsentence,ifalloranyoftheobligationsofCompanyto
paytheCompanyBreachTerminationAmountasliquidateddamagesunderthisClause26.4(b)areheldtobe
unenforceable,CompanyshallpayOwnerdamagesinrespectofallLossesandConsequentialLosssufferedby
OwnerarisingfromthatEventofCompanysDefault.Theamountofdamagespayableundertheimmediately
precedingsentenceshallnotinaggregateexceedtheCompanyBreachTerminationAmount,unlesssuch
obligationtopayliquidateddamagesisheldtobeunenforceableasaresultofanyargument,claim,or
proceedingraisedorbroughtbyCompanythatsuchobligationisunenforceable,inwhichcasetheamountof
suchdamagesshallbeunlimitedbythisClause26.4.
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(c)
IfthisagreementisterminatedbyCompanyunderClause26.3(a)pursuanttoanyEventofOwnersDefault,then
CompanyshallpayOwnertheOwnerBreachTerminationAmountwithin*****daysofthedateofCompanys
TerminationNotice.
(d)
Ifthisagreementisterminated:
(i)
(x)byOwnerforanyEventofCompanysDefault,OwnermayintheOwnersTerminationNotice
thereforrequirethatthepartiesbeginnegotiationof50%AcquisitionTermsor(y)byCompanyfor
IndonesianGovernmentalFMunderClause25.6,Ownermay,butisnotobliged,bynoticetoCompany
requirethatthepartiesbeginnegotiationof50%AcquisitionTermsor
(ii)
byCompanyforForceMajeureotherthanIndonesianGovernmentalFM,orforEventofOwners
Default,CompanymayintheCompanysTerminationNoticethereforrequirethatthepartiesbegin
negotiationof50%AcquisitionTerms,
andthetermsofSchedule15shallapply.
(e)
ThisClause26.4shallsurviveterminationofthisagreementhoweverarising.
26.5
TerminationforOwnerWilfulMisconduct
IfCompanyterminatesthisagreementinaccordancewithClause26.3(a)forEventofOwnersDefaultthatisWilful
Misconduct,OwnershalltransfertoCompanyitstitletotheFSRUinconsiderationonlyofOwnersreleasefromall
liabilityunderorinconnectionwiththisagreementandWilfulMisconductmeanstheOwnerintentionallyor
deliberatelycommittinganEventofOwnersDefaultunderClauses26.1(c),26.1(h),26.1(i)or26.1(j):
(a)
forthepurposeofbringingaboutearlyterminationofthisagreementsothatOwnermayemploytheFSRUfora
thirdpartyand
(b)
afteradecisionoftheboardofdirectorsofOwner,oranyotherPersonactinginaccordancewithexpressactual
authorityproperlydelegatedtohimbytheboardofdirectorsofOwner,tocommitthatEventofOwnersDefault
forthatpurpose.
26.6
HiredueonTermination
(a)
IfthisagreementisterminatedpriortotheexpirationoftheLeasePeriodinaccordancewithanyprovisionof
thisagreementorbyreasonofLaw,CompanyshallimmediatelypayOwnerforanyHireearnedbutnotyetpaid.
(b)
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26.7
EX10.18
Limitationofliability
(a)
ExceptascomprisedinanyliquidateddamagespayableunderClause6.4or26.4andasprovidedunderClauses
6.4(c),6.5(e),and26.4(b),neitherpartyshallbeliabletotheother,whetherincontract,tort,unlawfulaction
(perbuatanmelawanhukum)(includingnegligence)orrestitution,orforbreachofstatutorydutyor
misrepresentation,orotherwise:
(i)
foranyConsequentialLosssufferedbytheotherpartythatarisesunderorinconnectionwiththis
agreementor
(ii)
foranyLosses(exceptthoseexpresslytobepaidorbornebyapartyunderthisagreement)or
ConsequentialLosssufferedbytheotherpartyunderorinconnectionwithanyagreementbetweenthat
otherpartyandanythirdparty,includingtheEPCICAgreement,GSA,eachLNGSPA,TerminalUse
Agreement,LNGCCharterparty,TugCharter,BuildingContractandMooringContract.
(b)
ExceptasprovidedinClauses23and26.5,OwnershallhavenoliabilitytoCompanyinrespectofanyfailureto
complywiththisagreement,whetherincontract,tort,unlawfulaction(perbuatanmelawanhukum)(including
negligence)orrestitution,orforbreachofstatutorydutyormisrepresentation,orotherwise:
(i)
inorinrespectoftheperiodbeforeAcceptance,excepttopaydamagesunderClause6.4or
(ii)
inorinrespectoftheperiodonorafterAcceptance,exceptasprovidedunderClauses18.1and21.
(c)
Exceptasexpresslysetoutinthisagreement,allwarranties,conditionsandothertermsimpliedbystatuteorlaw
areherebytothefullestextentpermittedbylawexcludedfromtheagreement.
(d)
Nothinginthisagreementshalllimitorexcludeapartysliabilityforfraudorfraudulentmisrepresentation.
(e)
ThisClauseshallsurviveterminationofthisagreementhoweverarising.
26.8
Effectofterminationofagreement
Terminationofthisagreementshallbewithoutprejudicetoanyrightsorobligationsthataccruedbeforetermination.For
thepurposeofterminationcontemplatedinthisagreement,thepartiesherebyexpresslywaiveArticle1266ofthe
IndonesianCivilCodetotheextentthatacourtpronouncementisrequiredfortheterminationofthisagreement.
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26.9
MitigationofLoss
EachofCompanyandOwnershalltakeallreasonablestepstomitigateanyLossesandConsequentialLossresultingfrom
anybreachofthisagreementbytheotherparty,andanyLossesandConsequentialLossinrespectofwhichitis
indemnifiedhereunder.
26.10 LNGontermination
(a)
ExceptafterissueoftheExerciseNoticeorasotherwiseagreedinthe50%AcquisitionTerms,onearly
terminationoftheagreement,OwnershallassoonasreasonablypracticablenotifyCompanyoftheamountof
LNGremainingontheFSRUand,ifpracticable,thetimeitwouldrequiretoregasifyanddischargeitas
RegasifiedLNGandCompanymay,subjecttoClause26.10(b),bynoticerequireOwner:
(i)
ifitisreasonablysafeandpracticable,toregasifythatLNGanddeliveritregasifiedtoCompanyatthe
DeliveryPointorifthatisimpracticable
(ii)
ifitisreasonablysafeandpracticable,deliverittoanLNGCarrierwhichCompanyshallprocure,orif
thatisimpracticable
(iii)
exceptonterminationforanEventofOwnersDefaultsailtheFSRUtoacompatibleregasification
terminalnominatedbytheCompanyandatthatregasificationterminalregasifytheLNGanddeliverit
regasifiedtotheCompany,duringwhichperiodtheFSRUshallremainOnHireandnoWarranty
Compensationshallbepayable.
(b)
ExceptafterissueoftheExerciseNoticeorasotherwiseagreedinthe50%AcquisitionTerms,Ownermayas
soonasreasonablypracticableelecttopurchaseaquantityspecifiedinthatnoticeofLNGstoredontheFSRUat
thedateofthatnotice,andCompanyshallassignorprocureassignmentofallright,titleandinterestinthat
LNG,andshallredelivertheFSRUwithsuchLNG,onterminationorexpiry.
(c)
27.
SECURITY
27.1
Ownershallprocurethatwithin*****BankingDaysaftertheContractDate,anApprovedLetterofCreditissuedbyan
ApprovedBankhavingabranchinJakartaisgiventoCompanysubstantiallyintheformofPartAofSchedule4inthe
aggregateprincipalamountofUS$*****(andeachApprovedLetterofCreditgiventoCompanyunderclauses27.1and
27.2shallbeanOwnerLoC).
27.2
If,*****BankingDaysbeforeexpiryofanyOwnerLoC,theOwnerLoCEndDateshallnothaveoccurred,Ownershall
bythe*****BankingDaybeforesuchexpirydelivertoCompanyanotherOwnerLoCinsubstantiallythesameform
(saveastoitsexpirydate)
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27.3
andoutstandingprincipalamountremainingtobedrawnasthatwhichissoexpiringsuchthatCompanyholdsan
enforceableOwnerLoCatalltimesuntiltheOwnerLoCEndDateandtheOwnerLoCEndDatemeanstheearlierof
(1)the*****dayafterAcceptance(w)the*****dayaftertheCancellationDateand(3)thetimeatwhichUS$*****
shallinaggregatehavebeendrawnbyCompanyunderOwnerLoCs.If:
(a)
OwnerdoesnotdeliveranyOwnerLoCinaccordancewiththeprecedingsentenceor
(b)
ADowngradeEventoccurswithrespecttothePersongivinganOwnerLoC,
thenCompanymaydrawtheentireoutstandingprincipalamountofanyOwnerLoCitholds,andmayholdtheproceeds
ofsuchdrawingascashcollateralforOwnersobligationsunderClause6.4(theOwnerCashCollateral),suchcash
collateral(totheextentnotdrawnunderClause27.3)toberepaidtoOwnerontheearlierofOwnerssubsequentdelivery
toCompanyofanOwnerLoCinaccordance(exceptastotimeofdelivery)withtheprecedingprovisionsofthisClause
27.2andtheOwnerLoCEndDate.
27.4
ExceptasprovidedunderClause27.2,Companymay,andmayonly,drawundertheOwnerLoCorOwnerCash
CollateralamountsinaggregatenotexceedingtheaggregateofamountsduebutunpaidtoCompanyunderClause6.4
andshallwithin*****daysaftertheOwnerLoCEndDatereleasethePersongivingtheOwnerLoCfromallobligations
underit.
27.5
Companyshallprocurethatwithin*****BankingDaysaftertheearlieroftheArrivalTimeandAcceptance,Owneris
givenanApprovedLetterofCreditsubstantiallyintheformofPartBofSchedule4issuedtoOwnerbyanApproved
BankintheaggregateprincipalamountinUSdollarsequivalentto*****(andeachApprovedLetterOfCreditgivento
OwnerunderClauses27.4and27.5shallbeaCompanyLoC).
27.6
If:
(a)
*****BankingDaysbeforeexpiryofanyCompanyLoC,theCompanyLoCEndDateshallnothaveoccurred,
bythe*****BankingDaybeforesuchexpiryor
(b)
OwnermakesanydrawingunderaCompanyLoCunderClause27.6,within*****daysafterthatdrawing,
CompanyshalldelivertoOwneranotherCompanyLoCgivenbyanApprovedBankinsubstantiallythesameform(save
astoitsexpirydate)suchthatexceptasotherwisepermittedundersubClause27.5(b)OwnerholdsenforceableCompany
LoCsinanaggregateprincipalamountinUSdollarsequivalentto*****atalltimesuntilthe*****dayafterexpiryor
terminationofthisagreement(suchday,theCompanyLoCEndDate).If:
(c)
CompanydoesnotdeliveranyCompanyLoCinaccordancewiththeprecedingsentence,or
(d)
aDowngradeEventoccurswithrespecttothePersongivingaCompanyLoC,
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thenOwnermaydrawtheentireoutstandingprincipalamountofanyCompanyLoCitholds,andmayholdtheproceeds
ofsuchdrawingascashcollateralforCompanysobligationtopayOwneramountsdueunderthisagreement(the
CompanyCashCollateral),suchcashcollateral(totheextentnotdrawnunderClause27.6)toberepaidtoCompany
ontheearlierofCompanyssubsequentdeliverytoOwnerofaCompanyLoCinaccordance(exceptastotimeof
delivery)withtheprecedingprovisionsofthisClause27.5andtheCompanyLoCEndDate.
27.7
ExceptasprovidedunderClause27.5,Ownermay,andmayonly,drawundertheCompanyLoCorCompanyCash
CollateralamountsinaggregatenotexceedingtheaggregateofamountsduebutunpaidtoOwnerunderthisagreement
andOwnershallwithin*****daysaftertheCompanyLoCEndDatereleasethePersongivingtheCompanyLoCfrom
allobligationsunderit.
28.
LAYINGUPANDRELOCATION
28.1
CompanysOptiontoLayUp
(a)
SubjecttoClause28.3,Companymay:
(i)
fromtimetotime(includingbeforetheDeliveryDate)bynoticetoOwnerrequireOwnertolayupthe
FSRUatasafeplacereasonablynominatedbyOwner,takingintoaccountquestionsofmaintenance,
accessandsecurityand
(ii)
duringanyperiodoflayup,requireOwnertoputtheFSRUbackintoserviceand,afterreceiptofany
noticefromCompanytothateffect,OwnerisrequiredtorestoretheFSRUtoserviceaspromptlyas
reasonablypracticableinaccordancewithClause28.1(b),
(andeachperiodbetweenOwnernotifyingCompanythattheFSRUisceasingserviceaftereachnoticeunder
Clause28.1(a)(i)andthefirsttimeOwnernotifiesCompanythattheFSRUisresumingserviceattheMooring
thereafterunderClause28.1(a)(ii)shallbeaLayUpPeriod).
(b)
DuringanyLayUpPeriodunderthisClause28,OwnersobligationsunderClause20shallbeequivalenttothe
standardordinarilyappliedbyprudentownersofvesselsofthesameClassinlayup,theFSRUshallbeOnHire,
noWarrantyCompensationshallbepayable,andtheprovisionsofClauses18.1,21and22shallnotapply.Until
suchtimeasitispracticableforOwnertocompleteallworkthatisrequiredwithrespecttofouling(as
determinedduringanysurveyconductedpursuanttoClause28.2)andtheRegasificationEquipmentandinall
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EX10.18
otherrespectstorestoretheFSRUtoaconditionitwouldhavebeeninifithadnotbeenlaidup(includingany
inspectionandmaintenanceoftheRegasificationEquipment),theFSRUshallremainOnHireandnoWarranty
Compensationshallbepayable.
28.2
SurveysonLayUp
Ownershallpermit(orprocure,ifrequestedbyCompany,atCompanyscost)thataninwatersurveyofthehullis
performed:
(a)
eachtimetheFSRUentersintolayupand
(b)
priortotheendofanyLayUpPeriod,
andtheFSRU&MshallremainOnHireduringsuchsurvey.
28.3
HireAdjustmentforLayUp
(a)
BeforebeingrequiredtolayuptheFSRUunderthisClause28,Ownershallassoonasreasonablypracticable
providetoCompany:
(i)
anestimate(LayUpEntryEstimate)ofthecoststobeincurredfrombeginningpreparationforlayup
untiltheFSRUberthsatthelayuplocation(includinginrespectofthevoyagetothelayuplocation
andanysurveytobeperformedunderClause28.2)andonlyafterCompanysacceptanceofsuchLayup
EntryEstimateshallOwnerbeobligedtolayuptheFSRUandCompanyshall,inaccordancewith
Clause13afterreceivinganinvoicetherefor,payOwnertheaggregateof:
(A)
theLayUpEntryEstimateand
(B)
theamount(ifany)requiredsuchthat,afterCompanyshallhavepaidanyIndonesianTaxes
payableinrespectofallpaymentsunderthisClause28.3(a),Ownerwouldretainanamount
equaltotheLayUpEntryEstimate.
(ii)
anestimateofthenetincreaseordecreaseincoststobeincurredbyOwnerforthatlayup(LayUp
Estimate)duringtheYearinwhichtheLayUpPeriodstartsandcontinues,excludingthoseamounts
includedintheLayUpEntryEstimateandonlyafterCompanysacceptanceoftheLayUpEstimate
shallOwnerbeobligedtolayuptheFSRUandtheHireRatepayablewhiletheLayUpPeriod
continuesduringtheYearinwhichtheLayUpPeriodstartsshallbeadjustedaccordingly.Nolaterthan
*****daysbeforethestartofeachYearwhilethatLayUpPeriodcontinues,Ownershallprovideto
CompanyarevisedLayUpEstimatefortheYearandtheHireRatepayableduringthatYearwhilethe
LayUpPeriodcontinuesshallbeadjustedaccordingly.
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(b)
WhenassessingsuchnetincreaseordecreaseincostswhencalculatingtheLayUpEstimate,theitemstobe
takenintoaccountshallincludechangesinamountsspentonadministration,manning,stores,spareparts,
lubricatingoils,P&IClubandhullandmachineryinsurance(includingtheeffectofanydamagefranchise),
repairsandmaintenance,surveysanddrydocking(includinghullcleaningorpainting).
(c)
BeforebeingrequiredtoputtheFSRUbackintoserviceattheMooring,Ownershallassoonasreasonably
practicableprovidetoCompanyanestimateofthecostsarisingfromdoingso,includingthecostofanysurvey
underClause28.2andthecostsofcompletinganyworkthatisrequiredtorestoretheFSRUtoaconditionit
wouldhavebeeninifithadnotbeenlaidup(LayUpExitEstimate)andonlyafterCompanysacceptance
ofsuchLayUpExitEstimateshallOwnerbeobligedtoputtheFSRUbackintoserviceattheMooringand
Companyshall,inaccordancewithClause13afterreceivinganinvoicetherefor,payOwnertheaggregateof:
(i)
theLayUpExitEstimateand
(ii)
theamount(ifany)requiredsuchthat,aftercompanyshallhavepaidanyIndonesianTaxespayablein
respectofallpaymentsunderthisClause28.3(c),OwnerwouldretainanamountequaltotheLayUp
ExitEstimate.
28.4
RighttoRelocatetheFSRU
(a)
SubjecttoClause28.4(c),CompanymayrequirethattheFSRUberelocatedaftersatisfactionofAcceptance
Conditionstoasafeplace,takingintoaccountquestionsofmaintenance,accessandsecurity,inIndonesiawith
theconsentoftheOwnerprovidedthattheOwnermayonlywithholditsconsent:
(i)
onreasonableoperationalortechnicalgroundsor
(ii)
becausetheOwneroranyofitsAffiliatesintendstobidingoodfaithfortheopportunitytodeployan
alternativevesselattheproposednewlocation.
(b)
CompanymayrequestthattheFSRUberelocatedtoasafeplace,takingintoaccountquestionsofmaintenance,
accessandsecurity,outsideIndonesiawiththeconsentoftheOwner(whichOwnermaywithholdinitsabsolute
discretion).
(c)
IfCompanywishestousetheFSRUasatradingLNGvessel,itshallobtaintheOwnerspriorconsent(which
Ownermaywithholdinitsabsolutediscretion).
(d)
IftheFSRUisrelocatedunderthisClause28.4,Ownersobligationsunderthisagreementwithrespecttothe
MooringceasewitheffectfromtheFSRUsdeparturefromtheMooring.
(e)
Thepartiesshall,atCompanysrequest,meettodiscussingoodfaithappropriateamendmentstothisagreement
ifCompanywishestorelocatetheFSRU,deployanyalternativevessel,barge,platform,oranythingelsewith
thecapacitytostoreorregasifyLNGattheSiteorusetheFSRUasatradingLNGvessel,includingany
adjustmenttotheHireRate.
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29.
CONDITIONSOFUSE
CompanyshallprocurethatthemasterofeachLNGCarrierexecutestheConditionsofUseonbehalfoftheLNG
Carriersdisponentowner,andOwnermaydeclinetoloadanycargoofLNGfromanyLNGCarrier:
(a)
untilthemasteroftheLNGCarrierhassoexecutedtheConditionsofUseand
(b)
unlessthatLNGCarrierisincompliancewithLNGCCompatibilityRequirements.
and(i)theFSRUshallbeOnHireduringanyperiodofdelayresultingfromOwnersodecliningtoloadifitwouldbut
forthisprovisionhavebeenOnHireduringthatperiodand(ii)OwnershallhavenoliabilitytopayWarranty
Compensationinrespectofanyperiodofsuchdelay.
30.
INSURANCE
30.1
Coverage,CostsandLiabilityLevels
SubjecttoClause30.3,OwnershallprocureandmaintaininsuranceinaccordancewiththetermsofSchedule5
throughouttheLeasePeriod.OnorbeforetheDeliveryDate,andthereafteroneachrenewaloftheCompulsory
Insurances,OwnershallprovideCompanywithatruecopyoftheInsurancepolicy,theamountofpremiumforeach
insurancerequiredtobeprocuredandmaintainedinaccordancewithSchedule5,insurancecertificates,covernotesor
certificatesofentry,togetherwithconfirmationfromtheinsurersthatsuchinsurancecoverwillbeeffectiveonandfrom
theDeliveryDate.
30.2
LapseofCoverage(s)
WithoutprejudicetotherightsofCompanyunderClause26,ifthereisafailureorlapseoftheinsurance(s)requiredby
Clause30.1foranyreason(otherthanCompanysbreachofClause30.3)atanytimeduringtheLeasePeriodandifsuch
failureorlapseremainsunremedied,Companyshallhavetheoptionafter*****daysnoticetoOwnerwhilesuchfailure
orlapsecontinues,toprocurereplacementinsuranceswiththesameordifferentfirstclassinternationalinsurers,withall
documentedcoststhereof(saveforanyamountpayablebyCompanyunderClause30.3)tobebornebyOwner,which
may,atCompanysoption,beinvoicedtoOwnerforpaymentorbedeductedfromHireorothersumsduetoOwnerunder
thisagreement.
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30.3
LossofHireInsurance
(a)
CompanyshallpayOwnereachLoHAmountandWarRisksAmountwithin*****BankingDaysafterbeing
invoicedtherefor.
(b)
TheLoHAmountiseachamountequaltohalfofthepremiumpayablebyOwnerforobtainingorrenewing
LossofHireInsuranceinrespectofVesselFM.
(c)
TheWarRisksAmountiseachamountequaltothepremiumpayablebyOwnerforobtainingorrenewing
WarRisksInsurance.
30.4
AdditionalCoverage
CompanymayrequestOwner,atCompanyscosttoprocureandmaintainadditionalinsurancerelatingtotheFSRU,the
Mooringand/ortheLNGstoredintheFSRU.
31.
BUSINESSPRINCIPLES
31.1
NoViolationofApplicableLaws
Eachpartyagreesthatinconnectionwiththisagreementandtheactivitiescontemplatedherein,neitheritnoranyofits
Affiliatesshall:
(a)
make,promisetomake,orauthorisethemakingofanypayment,giftortransferofanythingofvalue,directlyor
indirectly,toanyofficialoremployeeofanygovernmentorinstrumentalityofanygovernmentortoany
politicalpartyorofficialthereoforanycandidateofanypoliticalpartyforthepurposeofinfluencingtheaction
orinactionofsuchofficial,employee,politicalpartyorcandidate,or
(b)
otherwisetakeanyaction,oromittotakeanyactionthatwouldcausetheotherpartytobeinviolationofany
LawsprohibitingcorruptbusinesspracticesinIndonesia,includingIndonesianantibriberyLaws,orofthe
principlesdescribedintheOrganisationforEconomicCooperationandDevelopment(OECD)Conventionon
CombatingBriberyofForeignPublicOfficialsinInternationalBusinessTransactionssignedon17December
1997(suchLaws,collectively,AntiBriberyLaws).
32.
DRUGSANDALCOHOL
OwnerwarrantsthatithasinforceanactivepolicycoveringtheFSRU&Mwhichmeetsorexceedsthestandardssetout
intheGuidelinesfortheControlofDrugsandAlcoholOnBoardShipaspublishedbyOCIMFdatedJune1995(or
anysubsequentmodification,version,orvariationoftheseguidelines)andthatthispolicywillremaininforce
throughouttheLeasePeriod,andOwnerwillexerciseduediligencetoensurethepolicyiscompliedwith.
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33.
POLLUTIONANDEMERGENCYRESPONSE
SubjecttoClauses23.3and26.7:
(a)
Ownershallexerciseallduediligencetoensurethatnooilorharmfulorhazardoussubstancesofanydescription
shallbedischargedorescapeaccidentallyorotherwisefromtheFSRU&MandthatOwner,FSRU&M,its
officersandcrewshallcomplywithallinternational,nationalandstateoilandairpollutionandenvironmental
laws,conventionsorregulations(PollutionRegulations)applyingintheterritorialwatersofIndonesia
(b)
ifavailableandrequestedbyCompany,OwnershallbecomeamemberoftheInternationalTankerOwners
PollutionFederation,oranysuccessorbodyofthesame,andOwnerwillretainsuchmembershipduringthe
LeasePeriod
(c)
thepartiesshalladviseeachotheroftheirorganisationaldetailsandnamesofpersonneltogetherwiththeir
relevanttelephone/facsimile/telexnumbers,whomaybecontactedona24hourbasisintheeventofoilspillsor
emergencies.thepartiesshallupdatesuchinformationandprovideeachotherwithsuchreviseddetailsona
regularbasissoastoensurethateachpartyhasuptodateandcorrectinformation
(d)
intheeventofanyspillage,dischargeorreleaseofLNGorothersubstancefromtheFSRU&M,Ownershall
procurethat,immediatelyandatitscostandexpense(subjecttoClause23.3),allnecessarymeasuresaretakento
minimisesuchspillage,dischargeorrelease.Notwithstandingtheforegoing,Companymay,atitsoption,and
uponnoticetoOwnerandtheMasterundertakemeasurestopreventorminimisedamageincaseofanaccidental
escapeofLNGorothersubstancefromtheFSRU&Mand
(e)
OwnershallprocurethatCompanyispromptlynotified,andinanyeventnotlaterthan*****hoursaftersuch
occurrence,intheeventwhetheroccurringatMooring,atseaorinport,ofanyfire,explosion,accident,
collision,grounding,cargoreleaseorspilloranyotherreasonthatcouldresultinasignificantdelayorserious
damagetotheFSRU,theFSRUscreworcargo.
34.
CONFIDENTIALITY
34.1
Confidentiality
ThepartiesagreetokeepConfidentialInformationstrictlyconfidentialandnottodiscloseanyConfidentialInformation,
exceptinthefollowingcaseswhenthepartyreceivingConfidentialInformationshallbepermittedtodisclosesuch
information:
(a)
ifitwasalreadycontrolled/possessedbythepartybeforeexecutionofthisagreementor
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(b)
itisalreadyknowntothepublicatthetimeitisdisclosedunderthisagreementorbecomesavailabletothe
publicotherthanthroughthebreachofanundertakingofconfidentialityoranactoromissionofthereceiving
partyor
(c)
itisrequiredtobedisclosedunderLaw,therulesandregulationsofanyrecognizedstockexchangeonwhichits
sharesorthesharesofanyofitsAffiliatesarelisted,oranyGovernmentalAuthority(providedthatthereceiving
partyshallgivenoticeofsuchrequireddisclosuretothedisclosingpartypriortothedisclosure)or
(d)
infilingswithacourtorarbitralbodyinproceedingsinwhichtheConfidentialInformationisrelevantandin
discoveryarisingoutofsuchproceedings(providedthatthereceivingpartyshallgivenoticeofsuchrequired
disclosuretothedisclosingpartypriortothedisclosure)or
(e)
toanyofthefollowingPersonstotheextentnecessaryfortheproperperformanceoftheirdutiesorfunctionsin
connectionwiththesubjectmatterofthisagreement:
(i)
anactualorpotentialsellerofLNGtobedeliveredtoorofgasdischargedbytheFSRUonlytothe
extentthatsuchinformationdisclosedisnecessaryfortheoperationalpurposesoftheFSRUunderthis
agreementanddoesnotcontainanyinformationrelatingtopricingorothersimilarlycommercially
sensitiveinformation
(ii)
anAffiliateofthereceivingparty
(iii)
employees,officers,directorsandagentsofthereceivingparty
(iv)
professionalconsultantsretainedbythereceivingpartyand
(v)
financialinstitutionsadvisingonorproviding,orbonafidepotentialfinancialinstitutionsconsidering
theprovisionoffinancingtothereceivingpartyoranyAffiliatethereof,
providedthatthereceivingpartyshallexerciseduediligencetoensurethatnosuchPersonshalldisclose
ConfidentialInformationtoanyunauthorizedpartyorPersons.
34.2
CompliancewithIndonesianLaw
Whileperformingitsobligationsundertheagreementand/orcarryingoutanyactivityconnectedthereto,Ownershall
fullycomplywithIndonesianLawandregulationscurrentlyinforceregulatingtheprotectionofpeopleandother
entitiesinrespectoftreatmentofpersonaldatatotheextentthatthey,astheninterpretedandconstruedbyIndonesian
courtsandcompetentauthorities,areapplicabletoit.
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34.3
Survival
TheprovisionsofthisClause34shallsurviveforaperiodof*****yearsaftertheterminationorexpiryofthisagreement.
34.4
IntellectualProperty
Itisexpresslyagreedthat,exceptasprovidedunderthePurchaseTerms,noIntellectualPropertyRightsrelatingtothe
FSRUortheRegasificationEquipmentshallbeorbecomethepropertyoforshallbeorbecomelicensedtoCompanyby
operationofthisagreement.
35.
NOTICES
Anynoticeorothercommunicationgiven,orrequiredtobegivenunderthisagreement,byeitherpartytotheotherparty
shallbeinwritingintheEnglishlanguageandexceptasotherwisepermittedundertheNominationProcedureorLNG
TransferProcedureshallbesentbyfacsimile,registeredmail,registeredairmail,orcouriertothefollowing:
Owner
Attention:HansKristiansen,ProjectManager
Address:HeghLNGLtd,72AnsonRoad,#0703AnsonHouse,Singapore079911
Fax:+6564386493
Company
47Attention:VicePresident,Project1
Copyto:ProjectCoordinator
Address:PTPerusahaanGasNegara(Persero)Tbk,Jl.K.H.ZainulArifinNo.20,Jakarta1140,Indonesia
Fax:+622163854601
ortosuchotheraddressees,facsimilenumbersandaddressesasthepartiesmayrespectivelyfromtimetotimedesignate
bynoticeinwriting.Anyfailuretotransmitacopyofthenoticetoapartylistedasentitledtoreceiveacopyshallnotin
anywayaffectthevalidityofanynoticeotherwiseproperlygivenasprovidedinthisClause35.
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35.1
Anysuchnoticeorothercommunicationshallbedeemedtohavebeendulygivenormadeasfollows:
(a)
inthecaseofaletter,whetherdeliveredincourseofthepostorbyhandorbycourier,atthedateandtimeofits
actualdeliveryifwithinnormalbusinesshoursonaworkingdayattheplaceofreceipt,otherwiseatthestartof
normalbusinessonthenextsuchworkingdayand
(b)
ifsentbyfacsimile,whenreceivedorconfirmedbysenderconfirmationifreceivedinalegibleformduringthe
recipientsnormalbusinesshoursonaworkingdayattheplaceofreceipt,otherwiseatthestartofnormal
businessonthenextsuchworkingday.
36.
PURCHASEOPTION
36.1
Companyhastheright(thePurchaseOption)bynoticegiventoOwneronanExerciseDate(suchnoticeaExercise
Notice)torequirethatOwnertransfertheFSRUAssetstoCompanyatapriceandotherwiseonthetermssetoutinthe
PurchaseTermsandifanExerciseNoticeisgiven,thisagreementshallterminateattheendofthedayonwhich
CompletionoccursunderandinaccordancewiththePurchaseTerms,butwithoutprejudicetorightsandobligations
beforesuchtermination.
36.2
CompanymaynotgivetheExerciseNoticeduringtheperiodafterCompanysrighttoservenoticepursuanttoClause3.2
or3.3hasexpiredunlessCompanyhasexercisedsuchright.
36.3
ThisClause36shallsurviveterminationofthisagreementhoweverarising.
37.
EXPERTDETERMINATION
37.1
IfamatterisexpresslytobereferredtoanExpertunderthisagreement,orthepartiesotherwiseagreethatapointof
differencebetweenthemshallberesolvedbyanExpert,thenthematterinissueshallbereferredtoanexpertappointedin
accordancewiththisClause37(theExpert)andthisClause37shallapply.
37.2
TheprocedurefortheappointmentofanExpertshallbeasfollows:
(a)
thepartywishingtheappointmenttobemadeshallgivenoticeinwritingtothateffect,togetherwithreasonable
detailsofthedisputeordifferencetoberesolvedbytheExpert,andthepartiesshallmeetinanendeavourto
agreeuponasingleExpert
(b)
ifthepartiesdonotagreeupontheappointmentofanExpertwithin*****daysafterthenoticeunderClause
37.2(a),eitherpartymayapplytothePresidentoftheLondonMaritimeArbitratorsAssociation(providinga
copyofthisagreementandanyotherinformationconcerningtheExpertsfunctions)forittoappointanExpert
assoonasreasonablypracticableandtheExpertwillbethePersonselectedbythePresidentoftheLondon
MaritimeArbitratorsAssociation.
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(c)
iftheExpertdiesorbecomesunwillingorincapableofacting,ordoesnotdeliverthedecisionwithinthetime
requiredbythisClausethen:
(i)
eitherpartymayapplytothePresidentoftheLondonMaritimeArbitratorsAssociationtodischargethe
ExpertandtoappointareplacementExpertwiththerequiredexpertiseand
(ii)
thisClause37appliesinrelationtothenewExpertasifhewerethefirstExpertappointed.
37.3
APersonshallnotbeappointedasanExpert:
(a)
unlessheisqualifiedbyeducation,experienceandtrainingtodeterminethematterindisputeor
(b)
ifhehasaninterestordutythatwouldmateriallyconflictwithhisrole(includingbeingapresentorformer
director,officer,employee,agentorconsultanttoaparty).
37.4
ThefollowingproceduresshallapplywhenamatterissubmittedtoanExpertfordetermination:
(a)
Within*****daysoftheExpertsappointment,thepartythatsubmittedthemattertoExpertdeterminationshall
submittoboththeExpertandtheotherparty:
(i)
awrittendescriptionofsuchmatterandastatementofthatpartyspositionand
(ii)
anyrelevantevidencesupportingitsposition.
(b)
Within*****daysafterapartyhassubmittedthematerialsdescribedinClause37.4(a),theotherpartyshall
submittoboththeExpertandthefirstparty:
(i)
writtenmaterialssettingforthitsresponsetothefirstpartyssubmissions,aswellasastatementofits
ownpositionasappropriateand
(ii)
anyrelevantevidencesupportingitsposition.
(c)
TheExpertshallconsiderthematerialssubmittedbythepartiesinaccordancewithClauses37.4(a)and37.4(b)
and,intheExpertsdiscretion,mayconsideranyadditionalinformationsubmittedbyeitherpartyatalaterdate.
(d)
TheExpertshalldeliverhisdecision,withfullwrittenreasons,assoonaspracticableafterreceivingthedataand
submissionssuppliedandmadetohimbythepartiesbutinanyeventnotlaterthan*****daysafterthedateof
theexpertsappointment.
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(e)
Thepartiesshallnotbeentitledtoapplyfordiscoveryofdocuments.
(f)
Thepartieswillprovide(orprocurethatothersprovide)theExpertwithsuchassistanceanddocumentsasthe
Expertreasonablyrequiresforthepurposeofreachingadecision.
37.5
ThetermsofappointmentoftheExpertshall:
(a)
entitletheExperttoobtainsuchindependentprofessionaland/ortechnicaladviceashemayreasonablyrequire
(b)
providethattheExpertshallhavethepowertoawardinterestandthatinterestonlatepaymentsshallrunforthe
entireperiodofanylatepaymentofanyamountdeterminedtobedueandowingand
(c)
permittheExpert,totheextentnotprovidedforbythisClause,todetermineinhisreasonablediscretionsuch
otherprocedurestoassistwiththeconductofthedeterminationasheconsidersjustorappropriate.
37.6
IfthepartiesfailtocauseanExperttobeappointedortheExpertfailstorenderadecisioninaccordancewiththisClause,
theneitherpartymayreferthemattertoarbitrationinaccordancewiththisagreement.
37.7
TheExpertshallactasanexpertandnotanarbitrator,theprocessshallnotberegardedasanarbitrationandtheLaws
relatingtocommercialarbitrationshallnotapply.AnExpertsdecisionrenderedinaccordancewiththisClauseshallbe
finalandbindingonthepartiesexceptinthecaseofmanifesterrororfraud.
37.8
ThereasonablecostsoftheExpert(includingthecostsofassistanceunderClause37.5(a))shallbeborneequallybythe
partiesandeachpartyshallbearitsowncostsinpreparingmaterialsfor,andmakingpresentationsto,theExpert.
37.9
AllmattersunderthisClauseshallbeconducted,andtheExpertsdecisionshallbewritten,intheEnglishlanguage.
Englishlanguagetranslationsofdocumentsshallbeprovidedbythepartyseekingtorelyonthatdocument,atthat
partyscost.
38.
LAWANDARBITRATION
38.1
Governinglaw
ThisagreementisgovernedbyandistobeconstruedinaccordancewiththelawsandregulationsofIndonesia.
38.2
Arbitration
(a)
Anydisputearisingoutoforinconnectionwiththisagreement,includinganyquestionregardingitsexistence,
validityortermination,shallbereferredtoandfinallyresolvedbyarbitrationinSingaporeinaccordancewith
theArbitration
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RulesoftheSingaporeInternationalArbitrationCentre(SIACRules)forthetimebeinginforce,whichrules
aredeemedtobeincorporatedbyreferenceinthisClause.
(b)
Thetribunalshallconsistof3arbitrators.
(c)
ThelanguageofthearbitrationshallbeEnglish.
(d)
AnarbitraltribunalconstitutedunderthisClause38.2may,unlessconsolidationwouldprejudicetherightsof
anyparty,consolidatearbitrationhereunderwitharbitrationundertheIndonesianOwnerGuaranteeand/or
UmbrellaAgreement,ifthearbitrationproceedingsraisecommonquestionsofLaworfact.Iftwoormore
arbitraltribunalsunderthoseinstrumentsissuesconsolidationorders,theorderissuedfirstshallprevail.
(e)
Eachpartyagreesthatitwillnotinstituteanycourtproceedingsarisingoutoforinconnectionwiththis
agreement(and,intheeventofconsolidation,theIndonesianOwnerGuarantee,orUmbrellaAgreement)except
onlytoenforceinanycourthavingjurisdictionanyawardrenderedbythearbitraltribunal.
(f)
Decisionsofthearbitraltribunalshallbebindinginfinalinstanceuponthepartieshereto.Thepartieshereto
expresslyagreeinaccordancewithLawNo.30of1999onArbitrationandAlternativeDisputeResolution(the
ArbitrationLaw)thatindecidingthedisagreementordispute,thearbitratorsshallbeboundbystrictrulesof
law,andmaynotpurporttodecidethesameexaequoetbono.ThepartiesfurtheragreetowaiveanyIndonesian
lawsandregulations,decreesorpolicieshavingtheforceoflawthatwouldotherwisegivearighttoappealany
arbitrationdecisionoraward,andtotheextentapplicable,assuchthatinconformitywithArticle60or
ArbitrationLaw,thereshallbenoappealand/orcessationtoanycourtoflawfromthedecisionofthearbitrators
andthepartiesshallnotchallengeorresisttheenforcementactiontakenbythepartyinwhosefavourthe
decisionofthearbitratorswasgiven.
(g)
ThepartiesheretoexpresslyagreetowaivetheapplicabilityofArticle48.1oftheArbitrationLawassuchthat
themandateofthearbitratorsdulyconstitutedinaccordancewiththetermsofthisLeaseshallremainineffect
untilafinalarbitralawardhasbeenissuedbythearbitrators.
39.
GOVERNINGLANGUAGE
39.1
ThisagreementisexecutedintheEnglishlanguage.IncompliancewithLawNo.24of2009regardingNationalFlag,
Language,EmblemandSong(Law24/2009),thepartiesagreetotranslatethisagreementintotheIndonesianlanguage
within90daysasofthedateofthisagreementoranyotherdateasagreedbetweentheparties.TheIndonesianlanguage
agreementshallhavethedateofthisagreementasitseffectivedate.SuchIndonesianlanguageversionshallforman
integralandinseparablepartoftheEnglishversion.Intheeventofinconsistenciesordifferencesininterpretation
betweentheEnglishandIndonesiantexts,theEnglishversionshallprevailandtherelevantIndonesianversionshallbe
deemedtobeautomaticallyamendedtoconformwithandtomaketherelevantIndonesiantextconsistentwiththe
relevantEnglishtext.
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39.2
EX10.18
Furthermore,eachpartyagreesitwillnotciteorinvokeLaw24/2009oranyregulationissuedthereunder,orclaimthat
thefactthisagreementwasexecutedintheEnglishlanguageonly,to:
(a)
defenditsnonperformanceorbreachofitsobligationsunderthisagreementor
(b)
allegethatthisagreementisagainstpublicpolicyorotherwisedoesnotconstituteitslegal,validandbinding
obligations,enforceableagainstitinaccordancewithitsterms.
40.
MISCELLANEOUS
40.1
RightsofThirdParties
NoPersonnotapartytothisagreementshallhaveanyrighttoenforceanyofitstermsexceptasprovidedinClause23of
thisagreementandInrespectoftheMasterasprovidedforinthisagreement.Noconsentofanythirdpartyisrequiredto
amend,vary,waive,orterminatealloranypartofthisagreement.
40.2
PartialInvalidity
If,atanytime,anyprovisionofthisagreementisorbecomesillegal,invalidorunenforceableinanyrespectunderany
Lawofanyjurisdiction,neitherthelegality,validityorenforceabilityoftheremainingprovisionsnorthelegality,
validityorenforceabilityofsuchprovisionundertheLawofanyotherjurisdictionwillinanywaybeaffectedor
impaired.Intheeventofanysuchillegality,invalidityorunenforceability,thepartiesagreetoreviseorreformthis
agreementtogiveeffecttotheoriginalintentofthepartiestotheextentpossible.
40.3
RemediesandWaivers
Nofailureordelaybyeitherpartyinexercisinganyrightorremedyunderthisagreementshalloperateasawaiver,nor
shallanysingleorpartialexerciseofanyrightorremedypreventanyfurtherorotherexerciseortheexerciseofanyother
rightorremedy.Therightsandremediesprovidedinthisagreementarecumulativeandnotexclusiveofanyrightsor
remediesprovidedbyLaw.
40.4
Amendments
Thisagreementmayonlybeamendedbywritteninstrumentsignedbybothparties.
40.5
Counterparts
Thisagreementmaybeexecutedincounterpart,andthishasthesameeffectasifthesignaturesoneachcounterpartwere
onasinglecopyhereof.
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40.6
EX10.18
Waiverofimmunity
Eachparty(tothefullestextentpermittedbyLaw)irrevocablyandunconditionally:
(a)
agreesnottoclaimanyimmunityfromproceedingsbroughtagainstitbytheotherpartyinrelationtothis
agreement,andtoensurethatnosuchclaimismadeonitsbehalf
(b)
waivesallrightsofimmunityinrespectofitoritsassetsand
(c)
consentsgenerallyinrespectofsuchproceedingstothegivingofreliefortheissueofanyprocessinconnection
withsuchproceedings.
40.7
NoSetoff
Exceptasotherwiseexpresslyprovidedunderthisagreement,allamountsdueunderthisagreementfromeitherpartyto
theothershallbepaidinfullwithoutanydeductionorwithholdingandneitherpartyshallbeentitledtoclaimsetoffor
tocounterclaimagainsttheotherinrelationtothepaymentofthewholeorpartofanysuchamount.
40.8
EntireAgreement
(a)
ThisagreementandtheUmbrellaAgreement,constitutesthewholeagreementbetweenthepartiesand
supersedesallpreviousagreementsbetweenthepartiesrelatingtoitssubjectmatter,andtheHOA,andall
obligationspursuanttotheITB,areherebyterminatedandceasetohaveeffect.
(b)
Eachpartyacknowledgesthat,inenteringintothisagreement,ithasnotreliedon,andshallhavenorightor
remedyinrespectof,anystatement,representation,assuranceorwarranty(whethermadenegligentlyor
innocently)otherthanasexpresslysetoutinthisagreement.
(c)
Nothinginthisagreementshalllimitorexcludeanyliabilityforfraud.
40.9
FurtherActs
Thepartiesshallatalltimesdoallsuchfurtheractsandexecuteanddeliversuchfurtherdeedsanddocumentsasshallbe
reasonablyrequiredinordertoperformandcarryouttheprovisionsofthisagreement.
INWITNESSWHEREOF,eachpartyhasexecutedthisagreementonthedatefirstabovewritten.
EACHOFTHEUNDERSIGNEDHEREBYUNDERTAKESTHATITHASREADTHISAGREEMENTAND
UNDERSTANDSITSENGLISHCONTENTS,ANDTHATTHISAGREEMENTHASBEENENTEREDINTOFREELYAND
WITHOUTDURESSANDTHATINDEPENDENTLEGALADVICEHASBEENGIVEN.
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EX10.18
SETIAPPENANDATANGANDENGANINIMENYATAKANBAHWAIATELAHMEMBACAPERJANJIANINIDAN
MEMAHAMIISINYAYANGDIBUATDALAMBAHASAINGGRIS,DANBAHWAPERJANJIANINITELAH
DITANDATANGANISECARASUKARELATANPAADANYAPAKSAANDANBAHWAKEPADANYATELAH
DIBERIKANNASIHATOLEHPENASIHATHUKUMINDEPENDEN.
/s/RAGNARWISLFF
Signature
RagnarWislff
Name
Capacity
Date
SignedforandonbehalfofPTPerusahaanGasNegara
(Persero)Tbk
/s/DJOKOSAPUTRO
Signature
DjokoSaputro
Name
Capacity
Date
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EXECUTIONVERSION
AMENDED&RESTATED
LEASE,OPERATION&
MAINTENANCEAGREEMENT
SCHEDULES
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EX10.18
TABLEOFCONTENTS
PAGE
Schedule1SpecificationsofFSRU
Schedule2FSRU&MPerformanceCriteriaandWarrantyCompensation
Schedule3CertificateofAcceptanceandCertificateofRedelivery
Schedule4Security
Schedule5Insurance
Schedule6HireRateandAdjustments
Schedule7OwnerPlannedMaintenanceSystem
Schedule8InformationtobeProvided
Schedule9NovationAgreement
Schedule10FinancingRequirements
Schedule11DeliveryProtocol
Schedule12PurchaseTerms
Schedule13NominationProcedure
Schedule14Consents
Schedule15TerminationAmountandAcquisitionAmount
Schedule16ConditionsofUse
Schedule17CompanySiteData
Schedule18O&MTerms
1
15
24
26
32
36
53
55
72
83
85
89
94
96
98
104
107
108
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EX10.18
SCHEDULE1SPECIFICATIONSOFFSRU
PARTA
PARTICULARSOFVESSEL
OwnershallverifyandupdatetheinformationmarkedTBNduringthedetailedengineeringandbuildingphaseoftheFSRU.
1.
GeneralInformation
Shipsname
Owner
PortofRegistryandFlag
IMONumber
Builder
HullNo.
Delivered
ClassificationSociety
Classnotation
Protection&IndemnityClub
PGNFSRULampung
[TBN]
[TBN]
[TBN]
HyundaiHeavyIndustries
2548
30April2014
DetNorskeVeritas(DNV)
+1A1,TankerforLiquefiedGas,Shiptype2G(163C,500kg/m3,70kPa),NAUTICUS
(Newbuilding),REGAS2,E0,NAUTOC,CLEAN,BIS,CSAFLS2,PLUS,COAT
PSPC(B),Recyclable,GASFUELLED,TMON
[TBN]
2.
PrincipalParticulars
LOA
LBP
Breadth,moulded
Depth,moulded
DepthtoTrunkdeck,moulded
Draught(design),moulded
Draught(scantling),moulded
HeightOverallkeeltohighestfixedpoint
GrossTonnage(International)
NetTonnage(International)
Metres
294
282
46
26
33
11.6
12.6
[TBN]
[TBN]
[TBN]
100/273
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Deadweight
Deadweightinseawater(s.g.of1.025)
Deadweightatdesigndraught,moulded
Deadweightatscantlingdraught,moulded
81,900tonnes
81,800tonnes
93,100tonnes
Communication&Navigationequipment
Internationalcallsign[TBN]
Radiostation
SatcomB
SatcomCTelex
VSAT
NavigationalEquipment
InternalCommunications
OpticalShip/ShoreCommunicationSystem
ExternalCommunication
[TBN]
[TBN]
[TBN]
[TBN]
[TBN]
Two(2)InmarsatStandardCsatellitecommunication
systemtobeprovidedasapartoftherequirementGMDSS
equipment.One(1)InmarsatStandardFleetBroadband
satellitecommunicationsystemtobeprovidedbutnottobe
apartoftherequiredGMDSSequipment.
Automatictelephonesystem,Publicaddresssystem,
Commonbatterytelephonesystem,UHFcommunication
system,UHFportabletransceiver(Buyerssupply),
Two(1optical,1electrical)ship/shoretelephonesystems
BasedonGMDSS
3.
DetailsofPrincipalCertification
InternationalConventionofLoadLines1966,withamendments
InternationalConventionoftheSafetyofLifeatSea,SOLAS
1974withamendments,includingtheIMOGasCode(IGC
Code)
InternationalCodefortheConstructionandEquipmentofShips
CarryingLiquefiedGasesinBulk(IGCCode)1993Edition
InternationalConventionforthePreventionofPollutionfrom
ships1973,MARPOL73/78withamendments
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EX10.18
Certificationwillbeheldindicatingcompliancewiththefollowing
ISPSCode(asapplicable)
ISMDocumentofCompliance
ISMSafetyManagementCertificate
4.
Machinery
MainEngine
Type
MaxCont.
Fuel
3xWartsilaHyundai6L50DF
DualFuelDieselGenerator
5,850kW
Boiloffgaswithpilotfuel
M.D.Owithpilotfuel
Pilotfuel:M.G.O.
Othermachinery
Propeller
Powergeneration
1FixedPitch,
5000kWx75rpm
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FuelconsumptionasFSRUduringregasifiedLNGdischarge
Regasrate
Fuelconsumption,NG
(MMscf/day)
(tonnes/day)
45240
Refchart*
* Stepincurverepresentstartofsecondhighpressurebusterpump
MarineDieselOil/GasOilcapacity
MarineDieselOil
4,000m3
MarineGasOil
300m3
5.
CargoTanks
ThecargotanksystemisGazTransport&Technigaz(GTT)MarkIIImembranesystem
Cargotankcapacity(20C,atm.Pressure)
Tank
No.1cargotank
No.2cargotank
No.3cargotank
No.4cargotank
Total
100%
abt.26,510m3
abt.47,830m3
abt.47,830m3
abt.47,830m3
170,000m3
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DesignspecificgravityLNG:470kg/m3
MaximumspecificgravityLNG:500kg/m3
Guaranteedboiloffrates
BoilOffRate(BOR)
0,15%ofcargovolume(100%)
MainDesignConditions
Maximumallowablereliefvalvesettingofcargotank(MARVS)
Normaloperatingvapourpressure
Cargotankdesignpressure
Insulationspacereliefvalvesettingpressurefor
primary/secondary
Minimumtemperatureacceptableintanks
70kPag
50kPag
1kPag/+70kPag
+3kPag/+3.5kPag
163C
LNGfillinglimit
Mooredoperationconditionat70kPag
98%
NopartialfillingrestrictionsforFSRUoperation
LoadingcapacityforLNGasFSRU
5000m3/hr
6.
CargoMachinery
Cargopumps
No.ofsets:4
1percargotank
Capacity:Ratedat550m3/hourx160mlc
No.ofsets:4
1percargotank
Retractable
No.ofsets:4
1percargotank
30,000m3/hourx2units
2,500m3/hourx3units
125Nm3/hourx2units
16,000Nm3/hourx1unit
Regasfeedpump
Spraypump
Highdutycargocompressor
Lowdutycargocompressor
Nitrogengenerator
Inertgasgenerator
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QualityofgasO2max
QualityofgasCO2approximate
QualityofgasCOmax
Dewpoint
GCU
[TBN]
[TBN]
[TBN]
[TBN]
1x100%ofthenaturalboiloffgasquantity
Heaters
Highdutyheater
LNGvaporizer
37,200kg/hourfrom55Cto+80C
Inertgaspurgemode:13,500kg/hfrom163Cto+20C
EmergencyNaturalGasSupplyMode:
22,000kg/hourfrom163Cto130C
Tomeetlowdutycompressorrequirements
Afterheater/coller
7.
CustodyTransferSystem
Primarylevelgaugesystem
Secondarylevelgaugesystem
Typeandlocation
Tankradar
(volume,temperature,pressure)
Floattype
(localreadoutofliquidlevel+
transmittertoCCR)
Number
1perTank
1perTank
8.
CargoManifolds
Isvesselfittedwithmidshipmanifolds
L.Pcargomanifoldonstarboardside(LVL)
Liquidconnection
Vaporconnection
H.Pmanifold(naturalgas)onportside(V)
H.P.naturalgasconnection
Yes,1starboard
2x16ANSI150RFtype
1x16ANSI150RFtype
1x16ANSI900RFtype
9.
DimensionsforincomingLNGCarrier[TBN,basedoncompstudy]
(a) MaximumCapacity
(b) Maximumandminimumlength
(c) Minimummanifoldheightcentreline
[TBN]
[TBN]
[TBN]
6
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EX10.18
10. LNGRegasificationSystem
Capacity:
LNGflowpertrains
No.oftrains
Maximumgassendout(openloop)
Flowvariation
LNGinlettemperature
NGoutlettemperature
Minseawatertemperature
NGoutletpressure(design)atDeliveryPoint
120MMscf/dny
3
240MMscf/day
45240MMscf/day
160C
18.3C
25C
78.6barg
Eachregasificationtraincontainsfollowing:
LNGboosterpump
LNG/Propaneheatexchanger
NG/Propaneheatexchanger
Propane/Seawaterheatexchangers
Propane/Seawaterheatexchangers
Propanetank
Propanereservoirtank
1
1PCHE(PrintedcircuitHeatExchanger)
1PCHE
2(evaporators)
1(propaneliquidheater)
1
1
SuctionDrum
Approx.20m3
10barg
100750m3/hour
Volume
Designpressure
Suctiondrumcapacities
Seawater
Seawaterliftpumps
3
Centrifugalpump
3,500m3/hx60MTH
[TBN]
Seawaterfilters/strainers
Recondenser
Recondensercapacityat240mmscfd
8tonne/hr
7
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11. GasMeteringSystem[TBN]
UltrasonicGasMeteringSystem
GasAnalyzerSystem
MeteringControlSystem
MeasurementAccuracy[TBN]
[TBNaspertheShipbuildingSpec]
StandardreferencesAGA9andAGA10
12. OdorizationSystem[TBN]
13. BallastSystem
PumpsRegasificationwithSTStransfer
Number
Type
Primemover
Capacity
Totalhead
PumpsRegasificationwithSTStransfer
Number
Type
Primemover
Capacity
Totalhead
3
Vertical,singlestage,centrifugal
Singlespeedelectricmotor
1,500m3/hour
30metresatS.G.1,025
2
Vertical,singlestage,centrifugal
Singlespeedelectricmotor
400m3/hour
30metresatS.G.1,025
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14. LiftingDevices
Crane
Manifold/RegasUnitServiceCrane
ProvisionHandlingCrane
Type/number
1xElectrohydraulicallyoperated,
knuckleboomtype,offshorecrane
(NSEN138521)
Personnelbasket
liftingjibtype
Compressorroomcrane
Emergencycargopumphandlingdavit
Bosunstoredavit
Steeringthrusterroomdavit
Remedyhandlingdavit
single,luffingjibtypecrane
1xairmotordrivendavit
2xairmotordriven
Capacity
10tonnesS.W.L
15metresoutboard
outreach
5tonnesS.W.L.(port)
2tonnesS.W.L.(stbd)
4metresoutboard
outreach
5tonnesS.W.L.
4metresoutboard
outreach
3tonnesS.W.L.
1.5tonnesS.W.L
1tonneS.W.L
0.2tonneS.W.L
Location
Midship
Aft
Midship
No.1cargotank
Bosunstore
Steeringgearroom
15. FenderSystem(forSidebySideOperations)[TBN]
Type
Numberof
Location
Capacity
[TBN]
[TBN]
[TBN]
[TBN]
16. FreshWaterSystem
Equipmentname:
Freshwatergenerators
Capacity/Type:
PlatetypeModelEX30RE:
Supplier:
Sasakura(Japan)
Capacity:30t/day
PlatetypeModelEX3OREwithSteam
FreshWatertank
Injector:
Capacity:30t/day
Totalcapacity445,6m3containedin2tanks:
NA
Portside:222,8m3
Starboardside:222,8m3.
FreshwaterisforAccommodationandSpareboiler
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EX10.18
17. FireSafetySystem
Equipmentname:
Firewatersystem:
Emergencyfirepump
Firehoses
Freshwaterfirstaidhose
Watersprinkle.
(Fromfirepipesystem)
Waterspraysystem:
(Seawater)
Fixedfirefightingsystem:
Capacity
Pumps:
240m3/hMTH30
160m3/hMTH115
160m3/hMTH115
Pump:72m3/hr.
Totalhead:100m
Engineroom:Approx10@15m
lengths.
Trunkdeck:Approx22@25mlengths.
Accommodation:Approx15@20m
lengths.(Seawater)
Approx7@20mlengths.
FWDpumproom.
Engineroom.
Trunkdeck.
Accommodation.
Drychemicalpowder
HighpressureCO2.
LocalWaterMistFireExtinguishing
System.
Portablefireextinguishers.
Engineroom:About50
Accommodation:About100
Cargocompr/motorroom:About4
Engineroom
Pump:1000m3/hrat90mTH.
Location:
Accommodation.
Paintstore.
Chemicalstore.
Exposedcargotank
domes.
CargoManifold.
FWDareaof
accommodation.
Cargocompressor
housefacingcargo
areas.
Regasificationplant.
Cargotankdeck
Engineroom.
Cargocompressor
room.
Cargomotorroom.
Maindieselgenerator
enginestop.
Purifierroom.
Boilerburnerfiring
area.
GCUburnerarea.
Incineratorburnerarea.
Engineroom
Accommodation.
Deckhoses.
Bosonstorage.
Steeringgearroom.
Cargocompressor
room.
Cargomotorroom.
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EX10.18
18. LifeSavingAppliances
Equipmentname:
LifeJacket
Capacity/Numberof:
50ofAdultsize.
4ofChildrensize.
Immersionsuit
45of
Lifebuoy
14of
Liferaft
Lifeboat.
Rescueboat.
Hospital.
5of
1boatfor40persons
1boat
Fullyequippedship
hospital.
Location:
4atBridge
4childrensize,Bridge.
2inEnginecontrolroom.
6FWD.
38atMusterstationondeck.
38incabins.
2inEnginecontrolroom.
3onBridge.
2FWD.
2onNavigationdeck
4onSternrailandboatdeck.
6atVesselsside.(Port&Starboard)
2inPilotboardingarea.
Upperdeckport&starboard.
UpperdeckFWD.
Aft
Inaccommodation.
Supplier:
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EX10.18
PARTBDESIGNBASIS
1.
LNGComposition
ThefollowingLNGcompositionisusedforthedesignbasisoftheFSRU.
Composition
CH4
C2 H 6
C3 H 8
iC4H10
nC4H10
iC5H12
nC5H12
CO2
N2
Total
LightLNG
%mol
HeavyLNG
%mol
98.10
0
0.005
11.895
100
84.00
8.395
4.00
1.250
1.250
0.005
0.005
0.005
1.00
100
2.
DesignbasisforMooring.
TheDesignBasisfortheMooringisdescribedbelow.
TheMooringwillbelocatedatthecoordinatessetoutinSchedule1PartCasatthedatehereof(theSite).Itisassumed
thattherearenoexplosives,wrecksorotherelementswithintheareaavailablethatarepreventingordelayinginstallation
oftheMooring.
ThewaterdepthfortheSiteisapproximately24mLAT(LowestAstronomicalTide).
TheMooringselectedbyCompanytokeeptheFSRUpermanentlymooredattheSiteisofaTowerYokeMooringSystem
typedesignedtowithstandtheextrememetoceanvaluesasrecommendedbytheClassificationSociety.
FortheDesignBasisoftheTowerYokeMooringSystemreferenceismadetoSchedule17.
TheMooringSystemisnotdesignedagainsttsunamiconditionsaspertheDesignBasis.
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EX10.18
PARTCMOORINGSPECIFICATIONS
OwnershallverifyandupdatetheinformationmarkedTBNduringthedetailedengineeringandbuildingphaseofthe
MooringSystem.
MOORINGSYSTEM
LocationforMooringFSRU
TYMSLoadBearingRange
DesignLimitations
WeatherMonitoringandPositionIndicationSystem
NavigationWarningLightsonMooringfixed
Structures
LifeSavingEquipment
AccesstoTYMS
NavigationalExclusionZone
TYMS/FSRUBatteryLimits
DeliveryPoint
TYMSTowerYokeMooringSystem
UTM:604319.47E,9398432.90N=LATITUDE5deg26min30
secS,LONGITUDE:105deg56min30secE(OffshoreLocation@
24mwaterdepth)
DesignLoadBearingCapacity~[HeghToprovide]
FSRUisdesignedtobemooredtothemooringfacilityfora100year
survivalcondition.FSRU+LNGCisdesignedtobemooredtogether
forSideBySideoperationsformetoceanconditionupto10years
returnperiod.
StandardOffshoretypeprovided,[TBN]
Solartypeprovidedwithbackupbatterypack.
StandardlifebuoysandFiremensoutfitinGRPboxes.
PrimaryaccessfromFSRUduringoperations.Alternativeaccessby
boats,boatlandingplatformsprovided.
TobeestablishedbyCompany
MooringSupportStructure(MSS)connectionpointstothedeckof
theFSRUandthelastflangeofthepipingoftheMSS.
ReferSchedule2FSRU&MPerformanceCriteriaandWarranty
CompensationItem1(a)
TheMooringwillbecapableofpermittingtheFSRUtobepermanentlymooredattheMooringduringtheLeasePeriod.
TheMooringwillhaveafatiguelifeforoperationsattheSiteforaminimumof50yearsforcivil/structuralandmarineelements
and50yearsforothermooringelementswithperiodicinspectionandsparing.
TheMooringisdesignedtoallowaLNGCarrierofatleast170,000cubicmeterstoragecapacitymooredinasidebyside
configurationwiththeFSRUinupto10yearreturnperiodenvironmentalconditions.TheCompanyshallundertakethe
necessaryarrangementswiththerelevantIndonesiaGovernmentalAuthoritiesforestablishment,andmarkingonnauticalcharts,
ofanExclusionZonearoundtheFSRU.
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EX10.18
TheTYMSshallbeconstructedanddeliveredaccordingtorecognizedinternationalstandardswithcertificatefroma
ClassificationSocietyorathirdpartyCertifyingBodyandtheMooringDeclaration.
Ownershallprovide,withthefinalMooringInvoice,apackageincludingthebelowlisteddocumentation:
Asbuiltdrawingsanddocumentation
TestingandCommissioningrecords
OperationandMaintenancemanualsincludingoperatinginstructions
ThirdPartyverificationandcertification(inoriginal)
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EX10.18
SCHEDULE2FSRU&MPERFORMANCECRITERIAANDWARRANTYCOMPENSATION
1.
Interpretation
(a)
InthisSchedule:
100%Cargo
Capacity
DeliveryPoint
CargoCapacity
FCLPeriod
means170,000cubicmetresat100%fillingrate.
meansthelastmanifoldontheGasMeteringEquipmentonthedeckoftheFSRU.
means166,600cubicmetresat98%fillingrate.
means,foreachPerformancePeriod,thetimeduringthatPerformancePeriodthatfallsinthe
WarrantyLiabilityPeriodwhentheFSRUisnotinStorageConditionandinrespectof
whichnoRecondenserCapacityWarrantyCompensationispayable.
GuaranteedFlowRate meansvariationoftheRegasificationFlowRatefromaminimumrateequivalentto45
Modulation
MMscfperdaytoamaximumrateequivalentto240MMscfperday(2%)innomorethan
2hoursfollowedby1hourtostabilisethenewflowrateineachcase.
Guaranteed
means240MMscfperday(2%),ataminimumtemperatureof65degreesFahrenheitand
RegasificationFlow
operationalpressureof1140psi(g)measuredattheDeliveryPointor,inthecircumstances
Rate
envisagedinClause6.9,theMaximumTestedRegasificationFlowRate.
LoadingReference
means:
Conditions
(i) LNGisloadedatapressureofnotlessthan4.4bar(g)attheFSRUsflexiblehoses
flangeconnection
(ii) theLNGCarrierisdischargingLNGatahomogeneoustemperaturecorrespondingtoa
saturationpressureofnotmorethan110millibar(g)
(iii) theLNGCarrieris,inaccordancewithGoodIndustryPractice,compatiblewiththe
FSRUandcapableofconnectingatleastsixhoses(if8inchdiameterhoses)orfive
hoses(if10inchdiameterhoses)and
MaximumFuel
ConsumptionRate
MMscf
(iv) thecargotanksarefullycooleddownandreadytoreceiveLNG.
meanstherateoffuelgasconsumptionforregasificationofLNGderivedfrombythegraph
setoutinsection4ofPartAofSchedule1.
meansmillionstandardcubicfeet.
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EX10.18
NominationPeriod
PerformancePeriod
PerformancePeriod
ActualFuel
Consumption
PerformancePeriod
GuaranteedFuel
Consumption
RegasificationFlow
Rate
StorageCondition
meanseachcalendarday.
meanseachContractQuarter.
means,foreachPerformancePeriod,thefuelgasconsumedbytheFSRUforregasification
ofLNGduringtheFCLPeriodfallinginthatPerformancePeriodwhileregasificationsend
outistakingplace.
means,foreachPerformancePeriod,theamountoffuelgas(expressedinMMBtu),which
wouldovertheFCLPeriodfallinginthatPerformancePeriodhavebeenusedfor
regasificationofLNGhadfuelgasconsumptionforregasificationofLNGbeenexactlyat
theMaximumFuelConsumptionRate.
meanstherateatwhichtheFSRUdeliversRegasifiedLNGintotheDownstreamPipeline.
meansanyperiodduringwhichthereisnoregasificationsendout,noLNGtransferor
cargotankcooldownongoing,andnoLNGpumprunninginanycargotank.
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EX10.18
PARTA
ACCEPTANCEMINIMUMREQUIREMENTS
1.
AcceptanceMinimumRequirements
The AcceptanceMinimumRequirementsshallmean:
(a)
theFSRUandMooringandtheirperformanceinoperationatAcceptance:
(i)
areinaccordancewiththeSpecifications
(ii)
areinaccordancewithIndonesianLawand(iftherequirementsoftheRegistryaredifferent)therequirementsof
theRegistryand
(iii)
meetrequirementsoftheClassificationSocietyforClass,ClassificationCertificatesandtheMooring
Declaration
(b) theFSRUiscapableofreceiving(andshallwhenrequiredinaccordancewiththeAgreementreceive)LNGattherate
of5,000m3ofLNGperhourattheLoadingReferenceConditions(excludingrampingupperiodsatthestartof
loading,andrampingdownperiodsduringtoppingupofcargotanks)
(c)
theFSRUisabletoregasifyLNGanddischargeRegasifiedLNG(andshallwhenrequiredinaccordancewiththe
Agreementsoregasifyanddischarge)attheGuaranteedRegasificationFlowRateiftheDownstreamPipelineis
capableofreceivingRegasifiedLNGatthatrate
(d) theFSRUiscapableofregasifyingLNGanddischargingRegasifiedLNGatarateof45MMscfdataminimum
temperatureof65degreesFahrenheitandoperationalpressureof1140psi(g)attheDeliveryPointiftheDownstream
PipelineiscapableofreceivingRegasifiedLNGatthatrate
(e)
theFSRUisabletovary(andshallwhenrequiredinaccordancewiththeAgreementtosovary)theRegasification
FlowRateinaccordancewiththeGuaranteedFlowRateModulation
(f)
theFSRUsmaximumfuelconsumptionwhenattheMooringandregasifyingLNGdoesnotexceedtheMaximum
FuelConsumptionRate
(g) themaximumboilofffortheFSRUinStorageConditionshallbe0.15%ofthe100%CargoCapacityperday
(h) theFSRUsboiloffrecondensersystemhasacapacityrangingfrom0tonnesperhouratagassendoutrateof45
MMscfdto8tonnesperhouratagassendoutrateof240MMscfd
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EX10.18
(i)
theFSRUsnumberoftanksandcargocapacityshallbeasspecifiedinSchedule1and
(j)
thetemperaturedifferencebetweenseawaterinletandseawaterdischargepointsiseightdegreesCelsiusorlessforall
modesoftheFSRUsregasificationplantoperationinordertopreventthetemperaturedifferencebeingmorethanfive
degreesCelsiusat500meterradiusfromtheFSRU.
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EX10.18
PARTB
MINIMUMREQUIREMENTS
1.
OperationalMinimumRequirements
TheOperationalMinimumRequirementsshallmean:
(a)
theFSRUiscapablelawfullyofregasifyingLNGanddischargingregasifiedLNGatarateofatleast45MMscfper
dayataminimumtemperatureof65degreesFahrenheitandoperationalpressureof1140psi(g)attheDeliveryPointif
theDownstreamPipelineiscapableofreceivingRegasifiedLNGatthatrate
(b) theFSRUiscapablelawfullyofloadingLNGsufficienttosatisfytherequirementsetoutinsection1(a)aboveand
(c)
theFSRUiscapablelawfullyofstoringLNGsufficienttosatisfytherequirementssetoutinsection1(a)above.
2.
PartialFMMinimumRequirements
ThePartialFMMinimumRequirementsshallmean:
(a)
theFSRUiscapablelawfullyofregasifyingLNGanddischargingRegasifiedLNGatarateofatleast120MMscfper
dayataminimumtemperatureof65degreesFahrenheitandoperationalpressureof1140psi(g)attheDeliveryPointif
theDownstreamPipelineiscapableofreceivingperdayRegasifiedLNGatthatrate
(b) theFSRUiscapablelawfullyofloadingLNGsufficienttosatisfytherequirementsetoutinsection2(a)aboveand
(c)
theFSRUiscapablelawfullyofstoringLNGsufficienttosatisfytherequirementssetoutinsection2(a)above.
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EX10.18
PARTC
1.
WarrantyCompensation
Subjecttosection2ofthisPartCandasotherwiseprovidedintheagreementtowhichthisScheduleisappended:
(a)
LoadingRateWarrantyCompensation:IfduringtheWarrantyLiabilityPeriodwhiletheLoadingReference
Conditionsaresatisfied,theFSRUfailsforreasonsotherthanaCompanyRiskEventorForceMajeure,whenrequired
bytheCompanyinaccordancewiththeLNGTransferProcedure,toreceiveLNGinaccordancewithanominated
loadingratenotexceeding5000m3/hour,OwnershallpaytoCompanyUS$*****perhour(proratedforperiodsother
thananhour)foreachperiodoftimethattheFSRUtakestoloadanyLNGinexcessofthetimethatwouldhavebeen
takentoloadthatLNGhadtheFSRUbeenloadedinaccordancewiththenominatedloadingratenotexceeding5000
m3/hourpursuanttotheLNGTransferProcedure.
(b) RegasificationFlowRateWarrantyCompensation:ifduringanyNominationPeriodfallingintheWarrantyLiability
Period(eachaFRDNominationPeriod),whenrequiredbytheCompanyinaccordancewiththeNomination
ProceduretodeliverRegasifiedLNGataratenotexceedingtheGuaranteedRegasificationFlowRate,theFSRUfails
forreasonsotherthanaCompanyRiskEventorForceMajeuretodeliverRegasifiedLNG(whendischargedata
temperatureofatleast65degreesFahrenheitattheDeliveryPoint)atanaveragerateatleastequivalentto98%ofthat
rateovertheFRDNominationPeriodwhenthepressureattheDeliveryPointisnomorethan1140psi(g)andthe
DownstreamPipelineisotherwisecapableofreceivingthatRegasifiedLNG,OwnershallpaytoCompanyforthat
FRDNominationPeriodanamountequivalentto:
*****
where:
*****isthatamountpayableinrespectofthatFRDNominationPeriodand
*****istheaggregateoftheCapitalElementandOperatingandMaintenanceElementforthatFRDNomination
Periodand
*****isthepercentagereductionin*****calculatedasfollows:
*****
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EX10.18
*****isthevolume(expressedInMMscf)ofRegasifiedLNGdeliveredintotheDownstreamPipelinefromtheFSRU
inthatperiod,dischargedatatemperatureofatleast65degreesFahrenheitattheDeliveryPoint(orRegasifiedLNG
dischargedatsuchlessertemperaturethattherelevantdownstreamofftakeraccepts)and
*****isthevolume(expressedinMMscf)ofRegasifledLNGthatwouldhavebeendeliveredintotheDownstream
PipelineinthatperiodhadRegasifiedLNGbeendeliveredatrateequivalentto98percent.oftheaveragerate
requiredtomeetthelesserof(i)CompanysNominationinaccordancewiththeNominationProcedureand(ii)the
quantityofLNGhadCompanysNominationnotexceededtheMaximumTestedRegasificationFlowRate,ineach
casewhenthepressureattheDeliveryPointisnomorethan1140psi(g)andtheDownstreamPipelineisotherwise
capableofreceivingthatRegasifiedLNG.
(c)
FuelConsumptionWarrantyCompensation:If,inanyPerformancePeriod,forreasonsotherthanaCompanyRisk
EventorForceMajeurethePerformancePeriodActualFuelConsumptionexceedsthePerformancePeriodGuaranteed
FuelConsumption,OwnershallpaytoCompanytheamountequaltotheaggregateamountofthatexcess(inMMBtu)
multipliedbytheaverageLNGPricefortherelevantperiod(andsumspayableunderthisparagraphshallbereferredto
asFuelConsumptionWarrantyCompensation).
(d) BoilOffWarrantyCompensation:OwnershallpayCompany,inrespectofeachPerformancePeriodwhentheFSRUis
inStorageConditionandforreasonsotherthananyCompanyRiskEventorForceMajeuretheamountofboiloff
exceeds0.15%ofthe100%CargoCapacityperdayduringanypartofthatPerformancePeriodfallingintheWarranty
LiabilityPeriod,theamountequaltotheamountofthatexcess(expressedinMMscf)multipliedbytheaverageLNG
Pricefortherelevantperiod(andsumspayableunderthisparagraphshallbereferredtoasBoilOffWarranty
Compensation).
(e)
RecondenserCapacityWarrantyCompensation:OwnershallpayCompany,inrespectofeachperiodduringthe
WarrantyLiabilityPeriodwhentheboiloffrecondenserisunabletorecondenseboiloffgasforreasonsotherthanany
CompanyRiskEventorForceMajeureforthedayswithinthatperiodwhentheFSRUissendingoutRegasifiedLNG
(theRecondenserOutagePeriod),theamountequaltotheLNGPricemultipliedbytheaggregatevolumeofboil
offgasthatotherwiseshouldhavebeenrecondensedbytherecondenser(expressedinMMBtu)intheRecondenser
OutagePeriod(theRecondenserVolume).TheRecondenserVolume(expressedinMMscf)duringtheRecondenser
OutagePeriodisthevolumeequaltothegreaterofzeroandtheamountdeterminedbythefollowingequation:
*****or
*****
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EX10.18
Where:
*****=theactualvolumeofboiloff(expressedinMMscf)thattherecondenserwascapableofrecondensing
duringtheRecondenserOutagePeriodasderivedfromthemeasuringtheperformanceofthecompressorsofthe
recondenser.
*****=thevolumeofboiloff(expressedinMMscf)foreachrelevantregasificationflowrateofRegasified
LNGsentoutduringtheRecondenserOutagePerioddeterminedapplyingtheratespecifiedinsection1(h)of
PartAofSchedule2.
*****=therequiredvolumeofboiloff(expressedinMMscf)thattherecondenserhastorecondenseduringthe
RecondenserOutagePeriodinordertoreachtheconditionofzerogasdumping.
*****=thevolume(expressedinMMscf)equalto:
(i)
theduration(indays,orpartthereof)oftheRecondenserOutagePeriodwhileshiptoshiptransferof
LNGistakingplace,multipliedby0.25%ofthe100%CargoCapacityperdayifShipToShip
Transfertakeplaceor
(ii) zeroifotherwise.
(f)
CargoCapacityWarrantyCompensation:OwnershallpayCompany,inrespectofeachperiodoftime(CCW
Period)duringtheWarrantyLiabilityPeriodthattheAdjustedCargoCapacityforreasonsotherthananyCompany
RiskEventorForceMajeureexceedstheaggregatevolumeofLNGthatcanbestoredinthecargotanksoftheFSRU,
anamountequivalentto:
*****
where:
*****isthatamountpayableinrespectofthatCCWPeriod
*****istheCapitalElementpayableforthatCCWPeriodand
*****isthepercentagereductioninHcalculatedasfollows:
*****
where:
*****istheaggregatevolume(expressedincubicmetres)ofLNGthatcanbestoredinthecargotanksofthe
FSRU
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EX10.18
*****istheAdjustedCargoCapacityand
theAdjustedCargoCapacitymeansateachtimeforwhichtheAdjustedCargoCapacityiscalculated:
(i)unlessatthattimethereisaClassCargoTankInspectionbeingundertaken,theCargoCapacity,or(ii)ifthere
issuchaClassCargoTankInspectionbeingundertakenatthattime,theCargoCapacityless98percent.ofthe
valuesfor100%cargotankcapacityspecifiedinthetablesetoutinsection5ofSchedule1PartA,forthetank
thesubjectofthatClassCargoTankInspection.
2.
LimitationonWarrantyCompensation
TheaggregateofsumspayablebyOwnerundersections1(a),(b),(e),and(f)inrespectofanydayshallnotinaggregate
exceedtheWarrantyCompensationCap.
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EX10.18
SCHEDULE3CERTIFICATEOFACCEPTANCEANDCERTIFICATEOFREDELIVERY
PARTA
CERTIFICATEOFACCEPTANCEFOR
[insertFSRUName]IMOnumber[insertIMOnumber](theFSRU)
The[insertFSRUName](IMOnumber[insertIMOnumber])(FSRU)wasacceptedbyPTPerusahaanGasNegara(Persero)Tbk
(PGN)on[insertDeliveryDate]inaccordancewiththeagreementdated[insertdateofAgreement]madebetweenPGNand
[insertnameofInitialOwner],asnovatedto[insertnameofIndonesianOwner]on[insertdateofNovationAgreement].
PlaceofAcceptance:[]
DeliveryDate:[]
DeliveryTime:[](localtime,Jakarta,Indonesian)
TestingFuelQuantity:[]
QuantityofmarinedieseloilonboardtheFSRUattheDeliveryTime:[]
SpecificationofmarinedieseloilonboardtheFSRUattheDeliveryTime:[]
ThequantityandspecificationofmarinedieseloilonboardFSRUupontheDeliveryDateshallbetheDeliveryBunkers,as
definedinthatagreement,
FORPGN:
FOR[insertnameofIndonesianOwner]:
By:
By:
Title:
Title:
DateSigned:
DateSigned:
Witnessedby:
Witnessedby:
Title:
Title:
DateSigned:
DateSigned:
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EX10.18
PARTB
CERTIFICATEOFREDELIVERYFOR
[insertFSRUName]IMOnumber[insertIMOnumber](theFSRU)
The[insertFSRUName](IMOnumber[insertIMOnumber])(FSRU)wasredeliveredbyPTPerusahaanGasNegara(Persero)
Tbk(PGN)to[insertnameofIndonesianOwner]on[insertdateofRedelivery]inaccordancewiththeagreementdated[insert
dateofAgreement]madebetweenPGNand[insertnameofInitialOwner],asnovatedto[insertnameofIndonesianOwner]on
[insertdateofNovationAgreement].
Placeofredelivery:[]
Dateofredelivery:[]
Timeofredelivery:[](localtime,Jakarta,Indonesian)
QuantityofmarinedieseloilonboardtheFSRUatthetimeofredelivery:[]
FORPGN:
FOR[insertnameofIndonesianOwner]:
By:
By:
Title:
Title:
DateSigned:
DateSigned:
Witnessedby:
Witnessedby:
Title:
Title:
DateSigned:
DateSigned:
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EX10.18
SCHEDULE4SECURITY
PARTA
OWNERLETTEROFCREDIT
PTPerusahaanGasNegara(Persero)Tbk,
Jl.K.H.ZainulArifinNo.20,
Jakarta1140,Indonesia
[Date]
REF:IRREVOCABLESTANDBYLETTEROFCREDITNO.(REF.NO.[Insertreferencenumber])
DearSirs,
1.
Byorderandfortheaccountof[](theOwner),weherebyestablishinyourfavouranirrevocableandunconditional
standbyletterofcredit(thisLetterofCredit)insupportofOwnersobligationsundertheAmendedandRestatedLease,
OperationandMaintenanceAgreementdated[]andauthoriseyoutodrawon[Nameandaddressofbank],uptoan
aggregateamountofUS$*****,(theMaximumAmount).
2.
FundsunderthisLetterofCreditwillbepaidtoyouinaccordancewiththetermsofthisLetterofCreditagainstyour
presentationtousatourofficeslocatedinJakartaofadrawingcertificatesubstantiallyintheformofAnnexAhereto(each
aDraft)notlaterthanthecloseofbusinessinJakartaontheExpiryDate.
3.
IfaDraftispresentedbyyouinaccordancewiththetermsofthisLetterofCredit,paymentshallbemadetoyou,without
prooforcondition,oftheamountspecifiedthereininimmediatelyavailablefundswithoutrightofsetofforcounterclaim
onthe*****succeedingBusinessDayaftersuchpresentation(whereBusinessDayshallmeananydayotherthana
SaturdayorSundayonwhichbanksareopenforbusinessinSingapore)freeandclearof,andwithoutdeductionfororon
accountof,anypresentorfuturetaxes,duties,charges,fees,deductionsorwithholdingsofanynatureandbywhomsoever
imposed.
4.
ThisLetterofCreditiseffectivefrom[thedatehereof]andwillremainvalidandinfulleffectuntiltheearlierof:
(i)
[insertlongstopexpirydate]
(ii) thetimetheLetterofCreditisreturnedtousforcancellationand
(iii) thetimethattheamountspaidtoyouunderparagraph3ofthisLetterofCreditinaggregateareequivalenttothe
MaximumAmount,
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EX10.18
(theExpiryDate).NoDraftmaybepresentedlaterthanthecloseofourbusinessin[Jakarta]ontheExpiryDate.
5.
Exceptasotherwiseexpresslystatedherein,thisLetterofCreditissubjecttotheInternationalStandbyPractices(ISP98),
InternationalChamberofCommercePublicationNo.590,andastomattersnotgovernedbyISP98,shallbegovernedby
andconstruedinaccordancewiththelawsofEngland.
6.
AnydisputearisingoutoforinconnectionwiththisLetterofCredit,includinganyquestionregardingitsexistence,
validityortermination,shallbereferredtoandfinallyresolvedbyarbitrationundertheLondonCourtofInternational
Arbitration(LCIA)Rules,whichRulesaredeemedtobeincorporatedbyreferenceintothisLetterofCredit.Thenumberof
arbitratorsshallbethree.Theseat,orlegalplace,ofarbitrationshallbeHongKong.Thelanguagetobeusedinthearbitral
proceedingsshallbeEnglish.
Yoursfaithfully,
(NameandLocationofBank&AuthorisedSignature(s))
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EX10.18
ANNEXAtoIRREVOCABLESTANDBYLETTEROFCREDITNO.[Insertreferencenumber]
DRAWINGCERTIFICATE
[Date]
[NameofIssuingBank]
[Address]
Re:IrrevocableStandbyLetterofCreditNo.[Insertreferencenumber](theLetterofCredit)
1.
Weherebycertifythataneventhasoccurredasaresultofwhich,undertheagreementpursuanttowhichtheLetterofCredit
wasprovided,weareentitledtomakethisdemand,andweherebydemandpaymentintheamountof[insertamount]under
theLetterofCredit.
2.
Paymentoftheamountdemandedherebyshallbemadeby[wiretransfertothefollowingaccount:][issuanceofa
chequetotheorderof].
Signedby
onbehalfofPTPerusahaanGasNegara(Persero)Tbk]
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EX10.18
PARTB
COMPANYLETTEROFCREDIT
[InsertnameofOwner],
[InsertaddressofOwner]
[Date]
[REF:IRREVOCABLESTANDBYLETTEROFCREDITNO.(REF.NO.[Insertreferencenumber])
DearSirs,
1.
ByorderandfortheaccountofPTPerusahaanGasNegara(Persero)Tbk(theCompany),weherebyestablishinyour
favouranirrevocableandunconditionalstandbyletterofcredit(thisLetterofCredit)insupportofCompanys
obligationsundertheAmendedandRestatedLease,OperationandMaintenanceAgreementdated[]andauthoriseyouto
drawon[Nameandaddressofbank],uptoanaggregateamountofUS$[insert],(theMaximumAmount).
2.
FundsunderthisLetterofCreditwillbepaidtoyouinaccordancewiththetermsofthisLetterofCreditagainstyour
presentationtousatourofficeslocatedin[Jakarta]ofadrawingcertificatesubstantiallyintheformofAnnexAhereto(each
aDraft)notlaterthanthecloseofbusinessin[Jakarta]ontheExpiryDate.
3.
IfaDraftispresentedbyyouinaccordancewiththetermsofthisLetterofCredit,paymentshallbemadetoyou,without
prooforcondition,oftheamountspecifiedthereininimmediatelyavailablefundswithoutrightofsetofforcounterclaim
onthe*****succeedingBusinessDayaftersuchpresentation(whereBusinessDayshallmeananydayotherthana
SaturdayorSundayonwhichbanksareopenforbusinessin[Jakarta])freeandclearof,andwithoutdeductionfororon
accountof,anypresentorfuturetaxes,duties,charges,fees,deductionsorwithholdingsofanynatureandbywhomsoever
imposed.
4.
ThisLetterofCreditiseffectivefrom[thedatehereof]andwillremainvalidandinfulleffectuntiltheearlierof:
(i)
[insertlongstopexpirydate]
(ii) thetimetheLetterofCreditisreturnedtousforcancellationand
(iii) thetimethattheamountspaidtoyouunderparagraph3ofthisLetterofCreditinaggregateareequivalenttothe
MaximumAmount,
(theExpiryDate).NoDraftmaybepresentedlaterthanthecloseofourbusinessin[Jakarta]ontheExpiryDate.
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5.
EX10.18
Exceptasotherwiseexpresslystatedherein,thisLetterofCreditissubjecttotheInternationalStandbyPractices(ISP98),
InternationalChamberofCommercePublicationNo.590,andastomattersnotgovernedbyISP98,shallbegovernedby
andconstruedinaccordancewith[thelawsof[[Indonesia/England]].
6.
[FORBANKSOUTSIDEINDONESIA][AnydisputearisingoutoforinconnectionwiththisLetterofCredit,including
anyquestionregardingitsexistence,validityortermination,shallbereferredtoandfinallyresolvedbyarbitrationunderthe
LondonCourtofInternationalArbitration(LCIA)Rules,whichRulesaredeemedtobeincorporatedbyreferenceintothis
LetterofCredit.Thenumberofarbitratorsshallbethree.Theseat,orlegalplace,ofarbitrationshallbe[HongKong].The
languagetobeusedinthearbitralproceedingsshallbeEnglish.]
Yoursfaithfully,
(NameandLocationofBank&AuthorisedSignature(s))
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EX10.18
ANNEXAtoIRREVOCABLESTANDBYLETTEROFCREDITNO.[Insertreferencenumber]
DRAWINGCERTIFICATE
[Date]
[NameofIssuingBank]
[Address]
Re:IrrevocableStandbyLetterofCreditNo.[Insertreferencenumber](theLetterofCredit)
1.
Weherebycertifythataneventhasoccurredasaresultofwhich,undertheagreementpursuanttowhichtheLetterof
Creditwasprovided,weareentitledtomakethisdemand,andweherebydemandpaymentIntheamountof[insert
amount]undertheLetterofCredit.
2.
Paymentoftheamountdemandedherebyshallbemadeby[wiretransfertothefollowingaccount:][issuanceofa
chequetotheorderof].
Signedby
onbehalfof[insertnameofOwner]
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EX10.18
SCHEDULE5INSURANCE
Ownershall,exceptasotherwiseprovidedintheotherprovisionsofthisagreementofwhichthisscheduleformspart,atalltimes
duringtheLeasePeriodprocure,maintainandpayforinsuranceontheFSRUinaccordancewiththefollowingprovisionsand
GoodIndustryPracticeandwhichotherwiseconformswiththetermsoftheAgreement,takingintodueconsiderationany
securityinterestsofPermittedCreditors(suchinterests,theApprovedSecurityInterest).
ForthepurposesofthisSchedule,Hull&MachineryInsuranceasdescribedinPartAparagraph1(a)andHullInterest/Freight
InterestasdescribedinPartAparagraph5(b)ofthisSchedulemeansanamount,notifiedbyOwnertoCompanybeforethe
DeliveryTime,ofnotlessthanUS$*****millionontheDeliveryDateandshallbereferredtoasAcceptedInsuredValue.
PARTATypesofInsuranceCoverage
1.
Hull&MachineryInsurance
(a)
OwnershalltakeoutandmaintainHull&MachineryInsurancewithfirstclassmarineunderwritersforsuchamountas
OwnermayrequirebutnotlessthanthemarketvalueoftheFSRUortheamountrequiredbyOwnersfinanciers.
Unlessotherwiseagreed,theminimuminsuredvalueoftheFSRUshallbetheAcceptedInsuredValueprovidedthat
atnotimeduringtheLeasePeriodshalltheminimuminsuredvaluebelessthantheamount,ifany,establishedunder
applicablelimitationorliabilityconventionswithrespecttotheFSRU.Coverage,ifany,obtainedpursuantto
paragraph5(b)hereofshallbeincludedwithininsuredvalueandshallresultinacorrespondingreductioninthelevel
ofHull&MachineryInsurancecoverage.
(b) TheHull&MachineryinsuranceshallbeplacedontermsequivalenttotheNorwegianMarineInsurancePlanof1996
Version2010orlateramendedversions(NMIP),orthestandardLondonInstituteHullClausesincommonusageat
thedateoforiginalissueandthedateofeachrenewal,respectively,ortheirEuropean,JapaneseorAmerican
equivalents.
(c)
UnlessplacedonNorwegianconditionsasperNMIP,theHull&Machineryinsuranceshallincludespecifically:
AdditionalPerilsclause(LNGvessel),orthe(London)InstituteAdditionalPerilsclauseHulls(Clause294if1.10.83
clausesareusedorequivalentifsubsequentclausesareused)ortheAmericanHullSyndicateLinerNegligenceclause
oritsequivalents.TheHull&MachineryInsurancemayincludefourfourthsRunningDownclause(RDC)and
liabilityforFixedandFloatingObjects(FFO)coverunlessOwnerathissolediscretionoptstotakeoutRDCand
FFOliabilitycoverbymeansofProtection&IndemnityinsuranceplacedwithoneoftheleadingP&Iassociations
whicharemembersoftheInternationalGroupofP&IClubs(theApprovedClubs).
(d) OwnershallarrangeforadeductibleonHull&MachineryInsurancewhichresultsinthemosteconomicalpremiums
recognisingconditionsorrestrictionswithintheApprovedSecurityInterestandthestandardswhichprudent
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EX10.18
shipownersoperatingfirstclassLNGorfloatingstorageandregasificationvesselsshouldobserveininsuringvesselsof
similartype,size,ageandtradeastheFSRUandwhichotherwiseconformwiththetermsoftheAgreementandis
acceptabletoreasonableinsurers.
2.
LossofHireInsurance
(a)
LossofHireInsuranceshallbeplacedonNorwegianConditionsNMIP1996Version2010orlateramendedversions
oratanysimilartermsandconditions.
(b) LossofHireInsurancetocoverlossofearningsduetovesselbeingputoffhireresultingfromrecoverabledamageto
vesselandatanagreeddailyamount.
(c)
Ownerwillarrangeforcommerciallyavailableterms,conditionsanddeductiblesof*****daysconsistentwithGood
IndustryPractice,andtoconsidertotalrecoverabledaysintheareaof*****days.
3.
Protection&IndemnityInsurance
(a)
Protection&Indemnityinsurance(P&IInsurance)shallbeplacedasaMutualorMobileOffshoreUnit(MOU)
entryatthesolediscretionoftheOwner,withandsubjecttoandonthebasisoftherulesofoneoftheApproved
Clubs.
(b) ThetermsoftheP&IInsuranceshallbeconsistentwiththestandardrulesofoneoftheApprovedClubs.The
deductiblesfortheP&IInsuranceshouldresultinthemosteconomicalpremiums,recognisingtheconditionsor
restrictionswithintheApprovedSecurityInterestandstandardswhichprudentshipownersoperatingfirstclassLNGor
floatingstorageandregasificationvesselsshouldobserveininsuringLNGvesselsofsimilartype,size,ageandtradeas
theFSRUandwhichotherwiseconformwiththetermsoftheAgreement.
(c)
IntheeventthatfourfourthsRunningDownClause(RDC)andliabilityforFixedandFloatingObjects(FFO)
coveristakenoutbymeansofHull&MachineryInsurance,P&Iinsurancecoverageshallbereduced,butonlytothe
extentofavoidingoverlap.
(d) P&IInsuranceshallincludePollutioncoveragewithpolicylimitsnotlessthanUS$*****(theApplicableAmount)
andcoverageforremovalofwreckatorinthevicinityofanyloadingterminalordischargeterminal,including
betweenthedesignatedarrivalpointandsuchloadingterminalordischargeterminal.ShouldtherelevantP&IClub
reducethelevelofcoveragewithrespecttoliabilitiesforpollutionorthethreatofpollutiontoanextentthatprudent
ownersoroperators(otherthanmajoroilcompanies)ofsimilarfloating,storageandregasificationvesselsareobtaining
additionalcoverageforsuchliabilities,thentheamountofpollutioncoveragetobeobtainedhereundershallmeanthe
amountthenbeingcarriedbyprudentownersoroperators(otherthanmajoroilcompanies)ofvesselsimilartothe
FSRUwhichareprocuringinsurancethatisgenerallyavailableinthecommercialmarket.
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EX10.18
(e)
IfrequestedbyCompany,OwnershallcooperateinobtainingatimecharterersentrywiththeApprovedClubsinthe
nameofCompany.
(f)
TotheextentthatcoverisnotprovidedbyP&Ientrypursuanttothisparagraph3,comprehensivegeneralliability
insurancecoverageshallbeplacedwithpolicylimitsofatleastUS$*****million,providingcoverageforpersonal,
injury,deathorpropertydamage(includingdamagetopropertyunderthecare,custodyandcontroloftheOwner)
resultingfromeachoccurrenceorrelatedseriesofoccurrencesgivingrisetosuchinjury,deathordamage.
4.
WarRisksInsurance
Ownershallhavethesamerightandobligationsinrespectofinsuranceofwarriskasprovidedforalltherisksreferredtoin
paragraphs1,2and3hereofand,whereapplicable,uptothesameamountsofcover.
5.
CompulsoryInsurances
(a)
Theinsurancesrequiredunderparagraphs1,2,3and4abovearesometimestogetherreferredtoastheCompulsory
Insurances.
(b) OwnermayconsiderobtainingIncreasedValueInsurance(HullInterestandFreightInterestInsurance(HIandFI)foran
amountrecommendedbyunderwritersforaportionoftheinsuredvalueonHull&Machineryonterms(sofaras
applicable)similartothosefortheHull&Machineryinsuranceandwithsameinsurersorothersofsimilarstanding.
Thedecisionwhethertousesuchinsuranceandthepercentageoftheinsuredvaluetobecoveredbysuchinsurance
shallbemadebyOwner,takingintoconsiderationtheadequacyoftheinsurancecoverage.
(c)
WhentheFSRUisidleorlaidup,Ownermay(orsubjecttoavailability,attherequestofCompany,Ownershall),in
lieuoftheinsurancerequiredhereunder,arrangeportriskinsuranceundersuchformsasCompanymayapprovein
writing,suchapprovalnottobeunreasonablywithheld,insuringtheFSRUagainsttheusualriskscoveredbysuch
formsandfortheamountssetoutinparagraph1.OwnershallobtainHull&MachineryInsuranceunderwritersprior
consenttosuchportriskinsuranceatthetimeofeachrenewal.
PARTBPremiumandClaims
6.
PaymentofPremiums
SubjecttoClause30,Ownershallberesponsibleforthepromptpaymentofanyandallpremiumsandcallsofwhatsoever
naturelawfullydemandedbyinsurersforCompulsoryInsurances.
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7.
EX10.18
ReimbursementbyOwner
IfanycostsincurredbyCompanyarecostswhichcanberecoveredundertheCompulsoryInsurances,Ownershallmakea
claimundertheCompulsoryInsurancesonbehalfofCompany,andtheamountsrecoveredshallbepaidbyOwnerto
Companyimmediatelyfollowingsuchrecovery(lessanyreasonablelegalcostsincurredinmakingsuchrecovery).
8.
Claims
OwnershalldiligentlypursueallclaimswhichcanbemadeundertheCompulsoryInsurances.OwnershallnotifyCompany
oftheamountandthenatureofanyexpectedoractualclaimsandrecoveries.
PARTCPlacingofInsurances:Miscellaneous
9.
WaiverofSubrogation
UnlessCompanyotherwiseagrees,Ownerundertakesthatallinsurancepolicies,andtotheextentpossiblewithinstandard
ProtectiveCoinsuranceprovisionsP&Iclubentries,relatingtotheFSRUanditsoperationandfallingwithinthe
CompulsoryInsurancesshall(a)providethatCompanyisanadditionalnamedassured,and(b)waiveinsurersrightsof
subrogationagainstCompany,savethatwheretheCompanyisanassuredpartyinrespectofanyCompulsoryInsurances,
theCompanyshallconsenttoanyassignmentofsuchCompulsoryInsurancesinfavourofPermittedCreditors,and
CompanyherebywaivesanyrighttointerferewiththePermittedCreditorsrightsunderanysuchassignment.
10. OtherInsurances
NothinghereinprovidedshallpreventOwnerfromarranging,foritssolebenefit,additionalinsurancecoverofthetypes
includedintheCompulsoryInsurancesand/orinsuranceofothertypesonsuchtermsasOwnerthinksfit.Ifanyother
insuranceisrequiredbyIndonesianLaw,CompanyshallpayOwnertheamountsofthecostsincurredinobtainingand
maintainingthatinsurance.
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EX10.18
SCHEDULE6HIRERATEANDADJUSTMENTS
1.
HireRate
Inthissection:
1.1
FMRate:
1.1.1
forVesselFM,meanstheVesselFMRate
1.1.2
forNVNIGFM,meanstheNVNIGFMRateand
1.1.3
forIndonesianGovernmentalFM,meanstheFullHireRate
1.2
FullHireRatemeansfromtimetotime,theaggregateoftheCapitalElement,OperatingandMaintenanceElementand
theTaxElementatthattime
1.3
HireRatemeans:
1.3.1
fortimewhentheFMRateispayableunderClause25.2(b)oftheagreementtowhichthisdocumentisappended
andofwhichitformspart,theFMRateand
1.3.2
forallothertimes,theFullHireRate
1.4
ProRataFMRateinrespectofVesselFMorNVNIGFMmeans:
1.4.1
foreachNominationPeriodduringwhichtheRegasificationFlowRateisatleast98%ofthatNominated:the
FullHireRate
1.4.2
foreachNominationPeriodduringwhichasaresultofthatForceMajeure,theRegasificationFlowRateis
greaterthan90%butlessthan98%ofthatNominated:theproductoftheNominationFractionmultipliedbythe
FullHireRateforthattime(andtheNominationFractionmeansinrespectofanyperiodforwhichthereisa
Nomination,thatRegasificationFlowRatedividedby98%ofthatNominatedforthattime)and
1.4.3
foreachNominationPeriodduringwhichasaresultofthatForceMajeure,theRegasificationFlowRateis90%
orlessofthatNominated:90%oftheFullHireRate
1.5
NVNIGFMRatemeans,foreachoccurrenceofNVNIGFM:
1.5.1
foreachofthefirst*****daysthatsuchNVNIGFMcontinues:theProRataFMRateand
1.5.2
foreachdayinexcessof*****daysthatsuchNVNIGFMcontinues:theFullHireRate,
(andproratainrespectofperiodsotherthanaday)
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EX10.18
1.6
VesselFMRatemeans,foreachoccurrenceofVesselFM:
1.6.1
foreachofthefirst*****daysthatsuchVesselFMcontinues:theProRataFMRate
1.6.2
foreachofthenext*****daysthatsuchVesselFMcontinues:nilifCompanycomplieswithitsobligations
underClause30.3ofthisagreementor,otherwise,shallbetheFullHireRateand
1.6.3
foralltimethatsuchVesselFMcontinuesinexcessof*****days:theFullHireRate,
(andproratainrespectofperiodsotherthanaday).
2.
CapitalElement
2.1
Subjecttosection2.2and2.3below,theCapitalElementshallbe:US*****perday(andproratafortimeperiods
otherthanaday).
2.2
Subjecttosection5,foreachCompanyAlteration,iftheCompanyAlterationresultsinanincreaseinOwnerscostsof
performingthisagreement(exceptOperatingCostintheHireContractYears),Ownermayinvoicetheamountofany
increasedcostbeforeorafterbeginningthatCompanyAlteration,theCompanyshallpaythatamountwithin*****
BankingDaysafterbeinginvoicedtherefor,andOwnerneednotstartsuchCompanyAlterationuntilsuchpaymentis
made.
2.3
Subjecttosection2.2above,aftertheInitialLeasePeriod,theCapitalElementshallbeanamountperdayinUSdollars
(andprorataforthetimeperiodsotherthanaday)equalto*****%oftheCapitalElementthatappliedimmediately
beforetheInitialLeasePeriodended.
3.
OperatingandMaintenanceElement
3.1
Inthissection:
3.1.1
AlterationOMEAdjustmentmeansinrespectofeachCompanyAlterationforeachday:
(a)
untilitisconfirmedundersection5ordeterminedundersection7ofthisSchedule,theEstimatedO&M
ElementIncreasethereforand
(b)
thereafter,theamount(ifany)bywhichtheAverageDailyOperatingCostischangedasaresultofthat
CompanyAlterationfortheperiodbeforetheendoftheLeasePeriodafterthatCompanyAlterationis
begun.
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EX10.18
3.1.2
AnnualIncreasemeans:
(a)
inrespectofeachHireContractYearfallinginthefirstReviewPeriod:*****%and
(b)
inrespectofeachHireContractYearfallingafterthefirstReviewPeriod,theamountdeterminedbythe
followingequation:
*****
where
***** istheAnnualIncreaseforanyHireContractYear(YearN)fallingafterthefirstReview
Period
***** istheAverageDailyOperatingCostfortheHireContractYeari
***** is:(a)theAverageDailyOperatingCostfortheHireContractYearimmediatelyprecedingHire
ContractYearior(b)ifHireContractYeariisthefirstHireContractYearunderthisagreement,
US$*****
n
is,inrespectofeachYearN,thenumberofHireContractYearsfallingintheReviewPeriod
immediatelyprecedingYearN
isthenumberinthesequenceofHireContractYears(inascendingorderinwhichtheyfellfrom
1ton)fallingintheReviewPeriodimmediatelyprecedingYearN.
3.1.3
AverageDailyOperatingCostmeansinrespectofanyperiod,theaggregateofallOperatingCostsincurred
forthatperioddividedbythetime(expressedindaystotwodecimalplaces)inthatperiod.
3.1.4
EstimatedO&MElementIncreasehasthemeaninggiventheretoinsection3.7below.
3.1.5
EstimatedRebasedO&MElementmeansinrespectofeachdayineachReviewYear,untilthefinal
calculationoftheRebasedO&MElementforthatReviewYearreferredtoinsection3.5ofthisSchedule,the
estimatethereofnotifiedunderthatsection,andthereaftertheamountdeterminedinthatfinalcalculation.
3.1.6
ExtensionYearmeanstheperiodstartingimmediatelyaftertheInitialLeasePeriodexpiresandendingwith
theHireContractYearinwhichitsoexpires,andeachHireContractYearthereafter.
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EX10.18
3.1.7
HireContractYearmeanstheperiodstartingwiththedateoftheearlierofArrivalTime,Acceptance,andthe
firstdayuponwhichtheHireRatebecomespayableunderthisagreementuntiltheendoftheYearinwhichthat
datefalls,eachcompleteYearthereafteruntilthelastContractYear,andthelastContractYear.
3.1.8
OperatingandMaintenanceElementmeans,inrespectofeachdayineachHireContractYear,theamount
perday(andprorataforfractionsofaday)fallinginthatHireContractYeardeterminedinaccordancewith
sections3.2to3.7(inclusive)andsection3.10ofthisSchedule.
3.1.9
OperatingCostinrespectofanyperiodmeanstheaggregateofallofthefollowingincurredbytheOwnerin
performingthisagreementinthatperiod:
(a)
ManningCosts,whichincludegrosssalary,overtime,consularchargesoncrewandcadets,currency
compensation,payrollburden(includingcontributionsrequiredbyGovernmentalAuthorities,
syndicatesorunionssuchasmedicalandwelfarecontributions,lifeinsurance,accidentanddisability
andpensionfunds),fringebenefits,leavepay,crewagency,joiningandrepatriationcosts,andtraining
(b)
MaintenanceandRepairCosts,whichincludethecostofreplacementpartsandmaintenanceand
repairsundertakenunderthisagreementbyPersonsnotincludedintheFSRUscomplementofshipboard
personnel(includingservicesandspares,whereservicesshallcoverallreasonableamounts,prudently
incurred,paidforassistancetotheFSRUbysuchPersonssuchasvoyagerepairmenandspecialists),
equipmentrentals,servicecontracts,feespaidtotheclassificationsociety,regulatoryauthoritiesand
consultantsandothersimilarexpenses,andsparesshallcoverallreasonableamounts,prudentlyincurred
forspareparts(includingtransportationandinsurance),normalreplacementofmachineryandequipment
whichhasbecomewarnout,lost,damagedorobsolete,repairandreconditioningofmachineryand
equipmentandothersimilarexpenses,andallothercostsincurredformaintainingandrepairingthe
FSRU&M
(c)
ConsumablesandStoresCosts,whichincludethecostsoffoodfortheFSRUspersonnel,spareparts,
andallconsumablesandexpendableitemssuchaspaint,wire,rope,textiles,cleaningmaterial,
lubricatingoil,additivesandelectricalandworkshopmaterialreasonablyrequiredfortheuseofthe
FSRUandMooringinaccordancewiththeagreement,andallotherconsumablesandstoresconsumedor
keptinconnectionwiththeoperationandmaintenanceoftheFSRU&M
(d)
InsuranceCosts,whichincludeallcostsofprocuringandmaintaininginsurancesrequiredunder
Schedule5
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EX10.18
(e)
ManagementandOperationalCosts,whichincludeallreasonableamountsprudentlyincurredin
feespaidtoconsultants,managerialtravelexpenses,accounting,informationtechnologyservices,
communication,administrationandoverheadandothermiscellaneousexpenditureitemsrequiredto
operatetheFSRUandMooringand
(f)
MiscellaneousCosts,whichincludeallothercostsofoperatingandmaintainingtheFSRUin
accordancewiththisagreement,includingcostsrelatingtotheClassificationSociety,regulatory
authorities,expensesfortraining,flagandothercostsincurredforoperationoftheFSRUandMooring.
3.1.10
RebasedO&MElementforeachdayineachReviewYearmeans:
(a)
untilitisconfirmedundersection5ordeterminedundersection7ofthisSchedule,theEstimated
RebasedO&MElement
(b)
thereafter,theamountequaltotheproductoftheAnnualIncreasefortheReviewYearmultipliedbythe
AverageDailyOperatingCostforitsReviewPeriod.
3.1.11
ReviewPeriodmeans:
(a)
inrespectofthefirstReviewYear,alltheHireContractYearsstartingbeforethatReviewYear,and
(b)
inrespectofeachReviewYearthereafter,thefiveHireContractYearsimmediatelyprecedingthat
ReviewYear.
3.1.12
ReviewYearmeanstheperiodstartingwith1June2019andendingwiththeHireContractYearInwhichit
falls,andeachHireContractYearthereafterduringwhichthe*****anniversaryofthestartofthelastReview
Yeartohaveprecededitfalls.
3.2
Subjecttosection3.5,theOperatingandMaintenanceElementforeachday:
3.2.1
beforeJune2015shallbetheaggregateofUS$*****perdayandtheaggregateofAlterationOMEAdjustments
therefor(ifany)and
3.2.2
afterMay2015untiltheagreementreferredtoinsection3.10ofthisScheduleiseffective,shallbedeterminedin
accordancewithsections3.3and3.4ofthisScheduleand
3.2.3
aftertheagreementreferredtoinsection3.10ofthisScheduleiseffective,shallbetheamountdeterminedby
thatagreement.
3.3
Exceptasprovidedinsection3.4,theOperatingandMaintenanceElementforeachdayafterMay*****fallinginany
HireContractYear(therelevantHireContractYear)
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EX10.18
shallbeanamountequaltotheproductoftheAnnualIncreasefortherelevantHireContractYearmultipliedbythe
OperatingandMaintenanceElementforthedayimmediatelyprecedingtherelevantHireContractYear,asitmaybe
increasedordecreasedundersection3.6and/orsection8.
3.4
TheOperatingandMaintenanceElementtobepaidbyCompanyforeachdayfallinginaReviewYearshallbethe
RebasedO&MElementforthatday,asitmaybeincreasedordecreasedundersection3.6and/orsection8.
3.5
OwnershallnotifyCompany:
3.5.1
ofitsreasonableestimateoftheRebasedO&MElementforeachReviewYearbythe*****daybeforethat
ReviewYearand
3.5.2
ofitsfinalcalculationofthatRebasedO&MElementbytheendofthefirstQuarterofthatReviewYear,
andifforanydayinrespectofwhichaMonthlyInvoiceshallhavebeenissuedthereisanydifferencebetweenthe
estimatenotifiedundersection3.5.1andtheRebasedO&MElementnotifiedundersection3.5.2,anamountequivalent
tothatdifferenceshallbedeductedoradded(asappropriate)totheamountstobeinvoicedinthefirstMonthlyInvoiceto
beissuedafterthatnoticeundersection3.5.2,or,ifthereiIstobenosuchfutureMonthlyInvoice,maybeseparately
invoicedbythepartytowhomitisowed,suchthatafterpaymentofthatinvoiceCompanyshallbeincompliancewith
section3.4ofthisSchedule.
3.6
TheOperatingandMaintenanceElement:
3.6.1
inrespectofeachCompanyAlterationstartingbeforethefirstHireContractYear,foreachdayofeachHire
ContractYearand
3.6.2
inrespecteachotherCompanyAlteration,foreachdayonandaftertheCompanyAlterationisbegun,
shallbeincreasedordecreasedbytheamountequaltotheincreaseordecreaseintheAverageDailyOperatingCoststhat
resultsfromthatCompanyAlteration(ifany).
3.7
OwnershallinrespectofeachCompanyAlterationnotifyCompany:
3.7.1
ofitsreasonableestimateoftheAlterationOMEAdjustmentforthatCompanyAlteration(inrespectofeach
suchchange,theEstimatedO&MElementIncrease)and
3.7.2
ofitsfinalcalculationofthatCompanyAlterationOMEAdjustmentbytheendofthefirstQuarterafterthe
earlierofstartoftheReviewYearnextfollowingcompletionofthatCompanyAlteration,expiryoftheLease
Period,andearlierterminationofthisagreement,
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EX10.18
andifforanydayinrespectofwhichaMonthlyInvoiceshallhavebeenissuedthereisanydifferencebetween
theamountnotifiedundersection3.7.2andtheEstimatedO&MElementIncreasenotifiedundersection3.7.1,
anamountequivalenttothatdifferenceshallbedeductedoradded(asappropriate)totheamountstobe
invoicedinthefirstMonthlyInvoicetobeissuedafterthatnoticeundersection3.7.2,or,ifthereistobenosuch
futureMonthlyInvoice,maybeseparatelyinvoicedbythepartytowhomitisowed,suchthatafterpaymentof
thatinvoiceCompanyshallbeincompliancewithsection3.6ofthisSchedule.
3.8
IftheactualcoststhatOwnerincurredarisingfromtheFSRUenteringintolayupunderClause28(theLayUpEntry
Costs)aremoreorlessthantheLayUpEntryEstimate,then:
3.8.1
iftheLayUpEntryEstimateexceedstheLayUpEntryCosts,OwnershallnotifyCompanyofthatexcess
within*****daysafterallLayUpEntryCostsareincurredandpayCompanysuchexcesswithin*****
BankingDaysafterreceivinganinvoicethereforor
3.8.2
iftheLayUpEntryCostsexceedtheLayUpEntryEstimate,CompanyshallpayOwnersuchexcesswithin
*****BankingDaysafterreceivinganinvoicetherefor.
3.9
IftheactualcoststhatOwnerincurredarisingfromtheFSRUreturningtoserviceafterlayupunderClause28(theLay
UpExitCosts)aremoreorlessthantheLayUpExitEstimate,then:
3.9.1
iftheLayUpExitEstimateexceedstheLayUpExitCosts,OwnershallnotifyCompanyofthatexcesswithin
*****daysafterallLayUpExitCostsareincurredandpayCompanysuchexcesswithin*****BankingDays
afterreceivinganinvoicethereforor
3.9.2
iftheLayUpExitCostsexceedtheLayUpExitEstimate,CompanyshallpayOwnersuchexcesswithin*****
BankingDaysafterreceivinganinvoicetherefor.
3.10
ThepartiesshalldiscussingoodfaithinordertomutuallyagreeamechanismconsistentwithGoodIndustryPracticeby
whichtheOperatingandMaintenanceElementshallbepaidbyCompanyonacostpassthroughforeachdayofan
ExtensionYear.
4.
TaxElement
TaxLiability
4.1
CompanyshallpaytoOwnerinaccordancewiththetermsofthisScheduleandonlyarisingunderIndonesian
taxregulations,amountsequivalenttotheaggregateof
4.1.1
allSpecificEventTaxes
4.1.2
allTaxElementTax
4.1.3
suchadditionalamountsaswillresultinthereceiptbyOwnerofanamountafterpaymentofSpecific
EventTaxesandTaxElementTaxequaltothefullamountwhichwouldhavebeenreceivedbyOwner
hereunderhadnosuchSpecificEventTaxesandTaxElementTaxbeenimposed,
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EX10.18
(andtheaggregateofallsumspayableunderthissectionshallbetheTaxLiability).
4.2
TheTaxElementshallbe,inrespectof
4.2.1
thefirstHireContractYear,OwnersreasonableestimateanddetailedcalculationoftheTaxLiability(excluding
SpecificEventTaxes)fortheperiodstartingwiththeContractDateandendingattheendofthefirstHire
ContractYeardividedbythenumberofdaysinthatperiod,whichestimateOwnershallnotifytoCompanyby
the*****daybeforetheScheduledDeliveryDateand
4.2.2
inrespectofthesecondandeachsubsequentHireContractYear,Ownersreasonableestimateanddetailed
calculationoftheTaxLiability(excludingSpecificEventTaxes)forthatHireContractYeardividedbythe
numberofdaysinthatHireContractYear,whichestimateOwnershallnotifytoCompanybeforethe*****day
beforethatHireContractYearstarts,
andeachestimateoftheTaxLiabilityunderthissection4.2shallbetheEstimatedTaxLiability.
4.3
OwnermayinvoiceCompany,andCompanyshallpayOwnerwithin*****BankingDaysafterreceivinganinvoice
therefor,theamountofanySpecificEventTaxesforwhichOwnerbecomesliabletopay,andshallseektoagreethat
CompanypaysthatSpecificEventTaxdirectlytotheappropriateIndonesianGovernmentalAuthority.
RefundsandCredits
4.4
IfOwnerrecoversanySpecificEventTaxes,TaxElementTax,andWithholdingTaxes(asarefundorcredit)inrespectof
whichCompanyhaspaidtheTaxLiability,OwnershallpromptlynotifyCompanythereofandrefundorcreditto
Companythesumsorecovered.
TaxStructuring
4.5
Ownershall,usereasonableendeavourstodowhataPersoninitspositionwouldreasonablybeexpectedtodotoreduce
itsliabilitytopayIndonesianTaxestoaminimumwereCompanynotobligedtopayOwnertheTaxLiability,including
usingreasonableendeavours:
4.5.1
tocollecttheFormDGTand/orCertificateofDomicilefromtherecipientofanyDWTorIWT,toenablethe
applicationoftaxtreatytariffsonDWTandIWT(ifany)
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EX10.18
4.5.2
toapplyforallavailabletaxfacilitiestominimiseSpecificEventTaxessuchas:
(i)
declarationofafreetradeareaforthepurposeofminimisingVATonimportundersection4.7.1
(ii)
temporaryimportforthepurposeofminimisingPPh22undersection4.7.2
(iii)
facilitiesunderRegulationMinisterofFinanceNo.213/PMK,OII/2011tominimisecustomsduties
undersection4.7.3,
providedthatCompanyprovidesOwnerwithallassistancereasonablyrequestedinordertoreduceOwners
liabilityforIndonesianTaxes.
4.5.3
IfOwnerwishestochangethePersontowhomitpaysdividendsafterAcceptance,itshallseektoagreewith
Companyifitmaydoso,andifnosuchagreementisreached,eitherpartymayreferthemattertoanExpertto
determinewhetherdoingsowillincreasetheTaxLiability.IfthepartiesagreeortheExpertdeterminesthat
doingsowillnotincreaseTaxLiability,OwnermaypaydividendstoaPersondifferentfromthattowhichitis
topaydividendsonAcceptance.
4.5.4
OwnerwillprovidetoanindependentauditorappointedjointlybythepartiesatCompanyscostallinformation
relatingtocorporateandtaxstructurereasonablyrequiredtopermitverificationofCompanyscompliancewith
section4.5providedthat,inrelationtotheactivitiesofOwnersanditsAffiliatesactivitiesoutsideIndonesia,
onlytheindependentauditorsreportshallbedisclosedtoCompany.Ownerwillprovideallinformation
relatingtocorporateandtaxstructurereasonablyrequiredtopermitCompanytoverifythatOwnerandits
AffiliateshavedoneorintendtodoinIndonesiawhatisreasonablyrequiredtocomplywithsection4.5,
includingmaintainingcloseconsultationwithCompanyonappropriatetaxstructuringinIndonesiatoreduce
OwnersliabilitytoIndonesianTax.Fortheavoidanceofdoubt,nothinginthissection4.5.4ofSchedule6shall
obligeOwnertodiscloseitsaccountstoCompany.
4.6
CompanyispermittedtocomplywithallIndonesiantaxregulationsincludingwithholdingunderArticle23ofthe
IndonesianTaxCodefromtheaggregateoftheCapitalElementandtheOperatingandMaintenanceElement.
Definitions
4.7
SpecificEventTaxcomprisestheTaxStabilisationAmountandeachofthefollowingIndonesianTaxes:
4.7.1
Indonesianvalueaddedtax(PajakPertambahanNilai)(VAT),currently10%onCIFvalueoftheimportplus
anyimportdutyontheFSRU,Mooring,andRelevantItems,unlessspecificexemptionisobtainedbythe
Owner
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EX10.18
4.7.2
PrepaidIncomeTax(PPh22)ontheCIFvalueoftheimportplusanyimportdutyontheFSRU,Mooring,and
RelevantItems(unlessexempted,currently2.5%ontheCIFplusanyimportdutyvalueiftheOwnerhasthe
importlicenceor7.5%ontheCIFplusimportdutyvalueiftheOwnerdoesnothaveimportlicenceunder
IndonesianLaw)
4.7.3
IndonesiancustomsdutieswhicharenotrecoverablebyOwnerundertheIndonesianTaxLawsfortheFSRU,
Mooring,andRelevantItems
4.7.4
AllIndonesianTaxespayablebyOwneron:
(i)
thePurchasePricereceivedunderthePurchaseTerms,and
(ii)
anyoftheOwnerBreachTerminationAmount,VesselFMTerminationAmount,CompanyBreach
TerminationAmount,orNonVesselFMTerminationAmountasthecasemaybe(eachthe
TerminationAmount)thatOwnermightreceiveunderClause26.4if50%AcquisitionTermsare
agreed
4.7.5
HalfoftheCorporateTax(PPhBadan)paidbyOwnerontheTerminationAmountifno50%AcquisitionTerms
areagreed
4.7.6
WithholdingTaxesonOwnersliquidation,andTaxElementTaxesincurredonOwnersliquidationin
accordancewithClause4.8.3(a),
excepttotheextentthatsuchIndonesianTaxesarepayableasaresultofanUnrelatedActivity.
4.8
TaxElementTaxmeanseachof:
4.8.1
Indonesiancorporatetax(PPhBadan)(CorporateTax)incurredbyOwner
4.8.2
Indonesianwithholdingtax(Article23)ontheamountequaltothemultipleoftheFullHireRateandeachday
intherelevantperiodand
4.8.3
WithholdingTaxesrequiredtobewithheldordeductedby:
(a)
Ownerfromdividendsorinteresttobepaidbyitoritsliquidatorsor
(b)
OwnersIndonesianshareholdersfromdividends,orinteresttobepaidbysuchshareholderstoowners
Singaporeanshareholders,
excepttotheextentthatsuchTaxesarepayableasaresultofanUnrelatedActivity.
4.9
TaxStabilisationAmountshallbetheaggregateof:
4.9.1
allincreasesintheaggregateliabilityofOwnerorOwnersIndonesianShareholderstoIndonesianTax
(includinganywithholdingofIndonesianTaxfromdividendsorinterestpayablebyOwner)thatresultsfrom
anychangeinIndonesianLaworTaxthatthepartiesagree,orfailingagreement,anExpertdetermineshave
occurredafterthedateofthisagreementand
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EX10.18
4.9.2
ifthepartiesagree,orfailingagreement,anExpertdeterminesonrequestbyeitherpartythatitbecomesa
requirementforlawfulperformanceofthisagreementthatanyAffiliateofOwnerbedomiciledinIndonesiain
additiontoOwner,theaggregateofallIndonesianTaxes(IncludinganywithholdingofIndonesianTaxfrom
dividendsorinterestpayablebysuchAffiliates)incurredbyallsuchAffiliates,
4.10
WithholdingTaxesmeansall:
4.10.1
Indonesianwithholdingtaxincurredondividends(PPhDividen)(DWT)paidbyOwneroritsliquidatorsto
itsshareholdersand
4.10.2
Indonesianwithholdingtaxincurredoninterest(PPhBunga)(IWT)paidbyOwneroritsliquidatorstoits
shareholdersorPermittedCreditors,orpaidbyOwnersIndonesianshareholdersonamountspaidtoOwners
Singaporeanshareholders,
4.11
UnrelatedActivitymeansabusinessactivityconductedbytheOwnerinIndonesiathat:(A)resultsinIndonesian
TaxesbeingpayablebythatPersonand(B)isconductedforapurposethatbearsnoconnectionwith:
4.11.1
theentryintothisagreement,itsperformance,andtheexpiryorterminationofthisagreementor
4.11.2
theFSRUortheMooringor
4.11.3
theFSRUFinancingorotherprovisionofcapitaltotheOwnerdirectlyorindirectlyor
4.11.4
theprovisionofgoodsorservicestoOwnerorCompanyinconnectionwiththeFSRUorMooringor
4.11.5
thepaymentofdividendsorinterestbyOwnerinconnectionwiththeFSRUorMooringor
4.11.6
theOwnerceasingtoconductactivitiesinIndonesiaonoraftertheterminationorexpiryofthisagreement.
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4.12
EX10.18
VAT
AllamountsduetoOwnerhereunderareexpressedexclusiveofvalueaddedtax(VAT)thereon.Inaccordancewiththe
taxregulationsforVAT,VATmaybechargedbyOwneronthoseamountswhereapplicableandshouldbepaidin
accordancewiththeapplicableLaw.Ownershallalsoissuetaxinvoices(forexampleFakturPajak)inaccordancewith
thetaxregulations,forHireandotheramountspayabletoOwnerhereunder.
5.
Audits
5.1
Anaudit(Audit)shallbeconducted:
5.1.1
followingtheendofeachHireContractYearandsubjecttosection5.4ofthisScheduleofsuchofOwners
booksandaccountsandotherrecordsasarereasonablyrequired:
(a)
todeterminethecostofanyCompanyAlterationincurredbytheOwnerduringtheHireContractYear
(b)
forthecalculationoftheamountofanyWarrantyCompensationpaidduringthatHireContractYear
(c)
todeterminetheamountoftheTaxLiabilityforthatHireContractYearandtoverifytheamountsofall
taxcreditsinrespectofTaxLiabilityforthatHireContractYearthathavebeenreimbursedtoCompany
and
(d)
tocalculatetheActualO&MIncrease(ifany)foreachCompanyAlteration
5.1.2
duringeachReviewYearandsubjecttosection5.4ofthisSchedule,ofsuchofOwnersaccountsasare
reasonablyrequiredtocalculatetheamountoftheRebasedO&MElementforthatReviewYear,
byaninternationallyrecognisedfirmofaccountantsappointedbybothCompanyandOwnerandsubjecttocustomary
obligationstoOwnertomaintaininstrictconfidencetheinformationdisclosedtothemforthataudit(theAuditors)in
accordancewithInternationalFinancialReportingStandardsandPernyataanStandarAkutansiKeuangan(PSAK)and
GoodIndustryPractice,atCompanyssoleexpense.CompanymayrequestadditionalinformationrelatingtotheTax
auditandOwnerwillnotunreasonablywithholdsuchadditionalinformation.
5.2
TheAuditconductedinrespectofeachHireContractYearshallbeforthepurposesof:
5.2.1
determiningthesumpayableinrespectofanyCompanyAlterationundersection2.2ofthisSchedule6in
respectofthatHireContractYearandtheActualO&MIncrease(ifany)foreachCompanyAlteration
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EX10.18
5.2.2
confirmingthecalculationofWarrantyCompensationpaidduringthatHireContractYear,saveinrespectof
amountswhich,atthetimeofaudit,aresubjectof(orhavebeenresolvedby)ExpertdeterminationunderClause
37ofthisagreementorarbitrationunderClause38ofthisagreement
5.2.3
confirmingtheamountoftheTaxLiabilityinrespectofthatHireContractYear(and,inrespectofthefirstHire
ContractYear,theperiodstartingwiththeContractYear)and
5.2.4
inrespectofanyAuditofaHireContractYearthatisaReviewYear,confirmingthecalculationoftheRebased
O&MElementinrespectofthatReviewYear.
5.3
SuchAuditsshallbeinaccordancewithInternationalStandardsonAuditingoftheInternationalAuditingandAssurance
StandardsBoards,andthefollowingtermsshallapply:
5.3.1
OwnershallgiveorshallcausetobegiventotheAuditorsaccesstoitsofficesduringnormalbusinesshoursto
reviewsuchbooks,accounts,andrecordsasrelatetoFSRU&Mandtheiroperationandmaintenance
5.3.2
OwnershallassistandcooperatewithAuditorsinreviewingsuchbooks,accounts,andrecordsandshallprovide
theAuditorswithcopiesandexplanationsasrequested
5.3.3
inthecaseofanAuditforthepurposessetoutinsection5.2.1only,Auditshallincludereviewsofthecontrols
andproceduresapplicabletothosecostssubjecttoauditandconfirmation,bywayordirectcommunication,of
suchcostsincurredtovendors/suppliers.
5.4
ThepartiesshallcooperatetoensurethateachAuditisconducteddiligentlyandexpeditiouslywiththeobjectivethat
suchAuditshallbecompletedby30ApriloftheYearinwhichitistobeundertakenandOwnershallinstructthe
AuditortoprovidetoCompanythecalculationithasperformedtodeterminetheactualTaxLiability.
5.5
IfanAuditundersection5.1.1(a)ofthisSchedule6shows,inrespectofanyCompanyAlteration,thatCompanyhaspaid
toOwnermoreorlessthanisrequiredbythisagreementtherefor,then:
5.5.1
iftheamountsopaidexceedswhatissorequired,OwnershallrepaythatexcesstotheCompanywithin*****
daysofsuchAuditor
5.5.2
iftheamountsorequiredexceedswhathasbeensopaid,CompanyshallpaytoOwnersuchexcesswithin*****
daysofsuchAudit.
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EX10.18
5.6
IfanAuditundersection5.1.1(b)ofthisSchedule6shows,inrespectofamountspaidasWarrantyCompensationunder
thisagreement,thatOwnerhaspaidtoCompanymoreorlessthanisrequiredbytheagreementtherefor,then:
5.6.1
iftheamountsopaidexceedswhatissorequired,CompanyshallrepaythatexcesstotheOwnerwithin*****
daysofsuchAuditor
5.6.2
iftheamountsorequiredexceedswhathasbeensopaid,OwnershallpaytoCompanysuchexcesswithin*****
daysofsuchAudit.
5.7
IfanAuditundersection5.1.1(c)ofthisSchedule6showsthattheamountpaidbyCompanyinrespectofTaxLiabilityis
moreorlessthantheactualTaxLiability,then:
5.7.1
iftheamountsopaidexceedstheactualTaxLiability,OwnershallpaytoCompanysuchexcessor
5.7.2
iftheactualTaxLiabilityexceedstheamountsopaid,CompanyshallpaytoOwnersuchexcess(theTax
ReconciliationAmount),
ineachcasewithin*****daysofsuchAuditandtakingintoaccounttaxcreditsreceived.
5.8
IfanAuditundersection5.1.1(d)ofthisSchedule6showsthattheAlterationOMEAdjustmentpaidinrespectofany
dayforanyAlterationismoreorlessthantheactualchangeintheAverageDailyOperatingCostresultingfromthat
Alteration(theActualO&MIncrease),then
5.8.1
iftheAlterationOMEAdjustmentexceedstheActualO&MIncrease,OwnershallpaytoCompanyor
5.8.2
iftheActualO&MIncreaseexceedstheAlterationOMEAdjustment,CompanyshallpaytoOwner,
anamountsuchthatafterthatpaymentOwnershallhavereceivedinaggregatewhatitwouldhavereceivedhadthe
ActualO&MIncreasebeenpaidforthatdaywithin*****daysofbeinginvoicedtherefor.
5.9
IfanAuditundersection5.1.2ofthisSchedule6showsthattheRebasedO&MElementismoreorlessthanthe
EstimatedRebasedO&MElementforaReviewYear,thenforeachdayforwhichtheEstimatedRebasedO&MElement
shallhavebeenpaid:
5.9.1
iftheRebasedO&MElementexceedstheEstimatedRebasedO&MElement,thenCompanyshallpayOwner
within*****daysofsuchAudit,theproductofsuchexcessmultipliedbythenumberofsuchdaysfallinginthe
ReviewYearforwhichtheEstimatedRebasedO&MElementwaspaidand
5.9.2
iftheEstimatedRebasedO&MElementexceedstheRebasedO&MElement,thenOwnershallpayCompany
within*****daysofsuchAudit,theproductofsuchexcessmultipliedbythenumberofsuchdaysfallinginthe
ReviewYearforwhichtheEstimatedRebasedO&MElementwaspaid.
5.10
CompanyandOwnershallmeetwithin*****daysaftertheAudittodiscusstheprocessandoutcomeoftheAudit(the
AnnualAuditMeeting).
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5.11
EX10.18
IftheDirectorateGeneralofTax(oranysuccessorbody)auditsOwner(DGTAudit)inrespectofaperiod(DGT
AuditPeriod)inrespectofwhichTaxLiabilityispayable,andthatDGTAuditdeterminesthatOwnerisliablefor
failingtopaySpecificEventTaxesorTaxElementTaxinrespectofthatDGTAuditPeriodthen:
5.11.1
totheextentthatliabilityaroseafteroffailureoftheCompanytomakepaymentinaccordancewiththis
agreement,theCompanyherebyindemnifiesOwneragainstthatliability,includingagainstallpenalties,interest
andsurchargesthatwillbeimposedontheTaxLiability
5.11.2
totheextentthatliabilityaroseasaresultoffailureoftheOwnertopay,withinthetimethatIndonesianLaw
requires,SpecificEventTaxesorTaxElementTaxforreasonsotherthanCompanysfailuretopaysumsdue
underthisagreementorfailureoftheAuditorstocalculatecorrectlytheamountsofsuchIndonesianTaxesdue,
Ownershallbearthatliabilityand
5.11.3
totheextentthatliabilityaroseasaresultoffailureoftheAuditorstocalculatecorrectlytheamountsofsuch
IndonesianTaxesdue,thepartiesshalleachbearhalfofthatliability,
andCompanyshallbeprovidedacopyofeachcalculationofthatliabilitybytheAuditors.
5.12
IfaDGTAuditresultsinarefundofTaxLiabilitytoOwnerpreviouslypaidbyCompany,Ownershallpay,includingby
deductionfromMonthlyInvoice,theamountofthatrefundtoCompany.
6.
FinalSettlement
Subjecttosection7ofthisSchedule6:
6.1
Anypaymentsmadepursuanttosection5.5ofthisSchedule6shallbeinfinalsettlementfortherelevantHireContract
YearastothecostoftheCompanyAlteration.
6.2
Anypaymentmadepursuanttosection5.6ofthisSchedule6shallbeinfinalsettlementofWarrantyCompensationpaid
underClause21intherelevantContractYear,saveinrespectofamountswhich,atthetimeoftheAudit,arethesubject
of(orhavebeenresolvedby)ExpertdeterminationunderClause37orarbitrationunderClause38ofthisagreement.
6.3
Exceptasprovidedinsection5.11,anypaymentmadepursuanttosection5.7ofthisSchedule6shallbeinfinal
settlementfortherelevantYearastotheamountoftheTaxLiabilityforthatYear.
6.4
Anypaymentmadepursuanttosection5.8ofthisSchedule6shallbeinfinalsettlementfortheamountpayableforthe
increaseinOperatingandMaintenanceElementasaresultofCompanyAlterationsundersection3.7.
6.5
Anypaymentmadepursuanttosection5.9ofthisSchedule6shallbeinfinalsettlementfortherelevantReviewYearas
totheamountoftheOperatingandMaintenanceElementforthatReviewYear.
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EX10.18
7.
Disputes
IntheeventCompanyandOwnerareunabletoresolvetheirdifferenceswithin*****daysafternoticethereofwith
regardto:
7.1
theAuditfindingsor
7.2
theapplicableorcontentofInternationalFinancialReportingStandardsPernyataanStandarAkuntansiKeuangan
(PSAK),InternationalStandardonAuditingorapplicableIndonesiaauditingstandardsor
7.3
TaxLiabilityor
7.4
anyotherissuerelatingtothecomputationoradjustmentoftheHireRate,
thedisputeshallbereferredtoanExpertfordetermination,suchExperttobeinstructedtomakeafinaldeterminationof
theissue.
8.
Stabilisation
8.1
IfanychangeinIndonesianLaworTaxoccursafterthedateofthisagreementthatresultsin:
8.1.1
anyincreaseinthecostoftheMooringorOwnersperformanceofthisagreement:
(a)
inrespectoftheMooringbeforeAcceptance,theMooringPriceshallbeincreasedbytheamountofthat
increaseand/or
(b)
saveasprovidedinsection8.1.1(a)above,theHireRateshallbeincreasedbytheamountofthat
increase,or
8.1.2
anydecreaseinthecostoftheMooringorOwnersperformanceofthisagreement:
(a)
inrespectoftheMooringbeforeAcceptance,theMooringPriceshallbedecreasedbytheamountofthat
decreaseand/or
(b)
saveasprovidedinsection8.1.2(a),theHireRateshallbedecreasedbytheamountofthatdecrease,
suchthataftersuchincreaseordecrease(asthecasemaybe)theOwnerisinthesameneteconomicpositionafterTaxthat
itwouldhavebeeninhadnosuchchangeinIndonesianLawoccurred.
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EX10.18
8.2
IfeitherpartybelievestheHireRateorMooringPriceshouldinconnectionwithanychangeinIndonesianLawbe
increasedordecreasedpursuanttosection8.1ofthisSchedule,itshall:
8.2.1
assoonasreasonablypracticablereasonablynotifytheotherof:
(a)
thechangeinIndonesianLaw
(b)
itscalculationofamountofthatchangetogetherwithallinformationinitspossessionwhichtheother
reasonablyrequeststodeterminetheamountofthatincreaseordecreaseand
8.2.2
eachpartyshallusereasonableendeavourstomitigatetheadverseeffectsofthatchangeinIndonesianLaw.
8.3
Assoonasreasonablypracticableaftereitherpartyhasgivennoticeundersection8.2ofthisScheduleinrespectofany
changeinIndonesianLaw,CompanyandOwnershallmeetandseektoagree:
8.3.1
thefactandeffectofthechangeinIndonesianLawand
8.3.2
theamountoftheincreaseordecrease(ifany)inHireRateorMooringPrice(asthecasemaybe)requiredby
section8.1ofthisSchedule,
failingwhichagreementwithin*****BankingDaysafterthatnotice,eitherpartymayrefersuchmatterfor
determinationbyanExpert,andtheHireRateorMooringPrice(asthecasemaybe)shallbeincreasedordecreasedasso
agreedordetermined.
9.
ThisSchedule6survivesterminationorexpiryofthisagreementand,fortheavoidanceofdoubt,Ownershallhaveno
rightsunderthisSchedule6inrespectofanyliabilityforTaxesthatarepayable(i)asaresultofanUnrelatedActivityor
(ii)onsaleoftheFSRUtoathirdparty,includingtoanyAffiliateofOwner,afterterminationorexpiryofthisagreement.
TherightsoftheInitialOwnerunderthisSchedule6shallsurvivenovationofthisagreementtoIndonesianOwnerunder
Clause15,andthatnovationshallnotaffecttherightsoftheInitialOwnerunderthisSchedule6.
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EX10.18
SCHEDULE7OWNERPLANNEDMAINTENANCESYSTEM
General
HoeghLNGFleetManagement(HLFM)hasimplementedamaintenancesystembasedonacentralisedmaintenancephilosophy.
Ourmaintenancesystem,AMOSBusinessSuite,hasbeendevelopedtosupportourcentralisedphilosophy.Themainfeatures
are:
Inventorylist,componentsandspareparts
Preventivemaintenanceprogramforallcomponents.
Historicalrecordsforperiodicandunplannedmaintenance
Stockcontrol
Integratedpurchasingsystem
AMOSisthemainsoftwaretoolforallmaintenancerelatedactionsonboardourvessels.Companymayinspectmaintenance
recordsandoutputreportsforperformanceunderandinaccordancewithClause2.7oftheagreement.
Organisation
AMOSisinstalledonboardandattheoffice.Thesystemisupdateddailybyscheduleddatatransfer(replication).
Allsuperintendentsareonlinewithacopyofthevesseldatabaseattheoffice.Thismakesitpossibleforthesuperintendentsto
haveaclosefollowupofeachvesselwithrespecttomaintenancedoneonboard.Benchmarkingofvesselperformanceisalso
simplifiedthroughAMOSandthenewcentralisedphilosophy.
Wehaveadatabasecontaininghighqualitydatathatisavailableatalllevelsanddepartments.
CentralisedPMS
Forsimilarequipment/sparepartsusedondifferentvessels,AMOSgivestheopportunitytocreateauniquecommonreference.
Thiswillbeofgreatadvantageinevaluationofequipmentperformance,aswewillgethistoryinputfromdifferentvesselforthe
sametypeofequipment.
Sparepartcontrolisalsosimplifiedthroughthecommonsparepartreference.Ingeneral,itisveryeasytoextractdatafromthe
systemtomeetvessel,managementandclassrequirementsformaintenanceandsparepartinformation.
DedicatedMaintenanceSuperintendentssupportallvesselswiththeirmaintenanceplanning,andensurequalityandconsistency
accordingtothecentralisedphilosophy.
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EX10.18
PreventiveMaintenance
Preventivemaintenancearescheduledforalltypesofjobsforallequipmentonboard,like:
Overhauls
Inspections
Conditionmonitoring
Tests
Surveys
Services
Drydockjobs
Thejobsfalldueondifferenttriggers:
Calendarfrequency(days,weeksormonths)
Runninghours
Massflow(e.g.flowmeterreadings)
Conditionofequipment(basedone.g.vibrationmonitoringorinspections)
Preventivemaintenanceplanarebasedonmakersrecommendationandoperationalexperience.
MonitoringofMaintenance
Seniorofficers,Superintendentsandofficestaffmonitorsthemaintenancecloselybyregularreportinganddailyfollowupjobs
done.Themainparametersare:
Unplannedmaintenance
Overduejobs
Onetimeworkorders
Criticalsystems
ContinuousImprovement
HLFMhasimplementedacontinuousimprovementproceduretooptimisethepreventivemaintenanceplanbasedonoperational
experience.
Vessel,superintendentandAMOSsupportgrouptakepartintheprocesstoevaluateandimplementpreventivemaintenance
strategies.
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EX10.18
SCHEDULE8INFORMATIONTOBEPROVIDED
SECTION1:DRAWINGSANDDOCUMENTATIONPRIORTOACCEPTANCE
(a)
InaccordancewithClause2.11oftheagreement,OwnerwillusereasonableendeavourspriortoAcceptancetoassistthe
CompanyinobtainingConsentsbyprovidinginformationanddocumentationwhenthisisavailable.
(b) OwnerwillalsoprovideCompanywithpreliminarycompatibilityrequirementsasreferredtoinClause2.6(c)(ii).
SECTION2:DRAWINGSANDDOCUMENTATIONAFTERACCEPTANCE
(a)
AsBuiltdrawingsinrespectoftheMooring.
(b) ThefollowingrepresentsanindicativelistoftheAsBuiltdrawingsanddocumentationprovidedbytheBuilderunderthe
BuildingContract.OwnerwillprovideCompanywithacopyofthesedrawingsanddocumentationassoonasreasonably
practicableafterAcceptance.
(c)
DocumentationfromthetestingdoneduringthegastrialattheShipyard.
Inaddition,acopyoftheMachineryOperatingManualandCargoOperatingManual,willbeprovided.
C220
No.
1
2
3
4
5
6
7
8
9
BASICDESIGNDEPTNo.2
DWGNo.
DRAWINGNAME
1G7000201
2E7641102
2E7641105
2E7830101
2T7400003
2T7412004
3K2000001
3U2400103
8G7000117
GENERALARRANGEMENT
ELECTRICKEYDISTRIBUTIONPLAN
SYSTEMFAULTCALCULATION
ELEC.LOADANALYSIS
HULLPIPINGDIAGRAM(EXCEPTLIVINGQUARTER)
CARGOPIPINGDIAGRAM
MACHINERYARRGTINENGINEROOM
PIPINGSYSTEMDIAGRAMINE/R
PRE.T/SANDLONG.STRENGTHCAL
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C230
No.
1
2
3
EX10.18
BASICHULLDESIGNDEPT
DWGNo.
DRAWINGNAME
1H7000201 MIDSHIPSECTION
1H7000202 CONSTRUCTIONPROFILE&DECKPLAN
1H7000203 SHELLEXPANSION
C280
No.
INITIALDESIGNDEPT
DWGNo.
DRAWINGNAME
1G7000106 MODELTESTREPORT
C3B7
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
SHAFTANDRUDDERDESIGNSECTION
DWGNo.
DRAWINGNAME
381011102
3R1112103
3R1112105
3R2820201
3R2823206
3R5111109
3R5111110
3R5111111
3R5113106
3R5114108
6R2820216
6R2821211
6R2822214
6R2822218
6R2823212
6R2825213
6R5111121
8R2820208
STERNFRAME
RUDDER
RUDDERSTOCK
SHAFTINGPLAN
LUBOILPIPINGINSTERNTUBEFORAFTERSEAL
HYDRAULICOILSTORAGETANKFORSTEERINGGEAR
STEERINGGEARSEAT
ARRANGEMENTOFSTEERINGSYSTEM
RUDDERCARRIER
GREASINGSYSTEMFORRUDDERCARRIER
CALCULATIONOFTORSIONALVIBRATION
PROPELLER
PROPELLERSHAFTNUT
HYDRAULICCOUPLINGBOLT
STERNTUBESEAL
INTERMEDIATESHAFTBEARING
STEERINGGEAR
CALCULATIONOFSHAFTALIGNMENT
56
155/273
6/14/2016
C3B8
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
EX10.18
CARGOCONTAINMENTSYSTEMDESIGNSECTION
DWGNo.
DRAWINGNAME
6W4000001
6W4000002
6W4000003
6W4000004
6W4000006
6W4000009
6W4000010
6W4000011
6W4000012
6W4000013
6W4000014
6W4000015
6W4000016
6W4000017
6W4000018
6W4000019
6W4000020
6W4000021
6W4000022
6W4000025
6W4000026
TANKGEOMETRY(DIMENSION&ANGLES)
BUILDINGPRINCIPLEFORCARGOCONTAINMENTSYSTEM
BOILOFFRATECALCULATION&MEASUREMENT
INSULATIONHEATCAPACITYANALYSISFORCARGOCONTAINMENTSYSTEM
TEMPERATURECHARTS
COMPONENTCODINGSYSTEMPRINCIPLE
SPECIFICATIONSOFCARGOCONTAINMENTSYSTEM(1/2)~(2/2)
ERECTIONPROCEDUREOFCARGOCONTAINMENTSYSTEM
G/A&RETAININGBARLOCATIONFORCARGOTANKS
ARRTOFSTUDBOLTFORCARGOTANKS
ARRTOFINSULATIONPANELFORCARGOTANKS
ARRTOFSECONDARYBARRIERFORCARGOTANKS
ARRTOFTOPBRIDGEPADANDERECTIONONBOARDFORCARGOTANKS
ARRTOFMEMBRANESHEETFORCARGOTANKS
ARRTOFMEMBRANEACCESSORIESFORCARGOTANKS
LIQUIDDOMESURROUNDINGAREAFORCARGOTANKS
GASDOMESURROUNDINGAREAFORCARGOTANKS
PUMPTOWERBASESURROUNDINGAREAFORCARGOTANKS
SIDESHELLOPENINGFORCARGOTANKS
LEAKAGETESTPROCEDUREFORCARGOCONTAINMENTSYSTEM
INSULATIONAROUNDDRAININGAREAFORCARGOTANKS
57
156/273
6/14/2016
C3C2
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
EX10.18
HULLDESIGNSECTION
DWGNo.
DRAWINGNAME
3H1000001
3H2100001
3H2200001
3H3100001
3H4000001
3H4400002
3H4400003
3H5200001
3H5300002
3H6000001
3H6500001
3H7000001
3H7000004
3H7000007
3H7000008
3H7500001
3H7600001
3J5401001
3K2840371
AFTENDCONSTRUCTION
DOUBLEBOTTOMINENGINEROOMINCL.4THDECK
ENGINEROOMCONSTRUCTION
DOUBLEBOTTOMINHOLD(incl.HOPPERTANK)
TRANSVERSEBULKHEAD
FRAMINGINHOLD
TRUNKDECKCONSTRUCTION
CARGOGEARLOCKER
MOTOR/COMPRESSORROOMCONSTRUCTION
FOREENDCONSTRUCTION
BOWBULWARKCONSTRUCTION
STANDARDOFHULLSTRUCTURALDETAIL
TANKTESTINGPLAN
LIQUIDDOMESEAT
VAPORDOMESEAT
ARRANGEMENTOFMANHOLE
ARRANGEMENTOFBOTTOMPLUG&BULKHEADMARK
ARRANGEMENTOFPLATFORMUNDERCARGOMANIFOLDCONSTRUCTION
MAINTURBINESEAT
C3C6
No.
1
2
3
4
ACCOMMODATIONSTRUCTURALDESIGN
SECTION
DWG
DRAWING
No.
NAME
3H8000001
3H8000003
3H8400001
3H8500002
DECKHOUSECONSTRUCTION
STANDARDPRACTICEINACCOMM.(6/6)[HULLSTRUCTURE]
ENGINECASINGCONST.(INCL.FUNNELCONST.)
FUNNELMARK
58
157/273
6/14/2016
C3F1
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
EX10.18
HULLOUTFITTINGDESIGNSECTION
DWGNo.
DRAWINGNAME
2J7361001
2J7361002
2J7361003
2J7400004
2J8221004
2J8221005
2J8361003
2T5412010
2T7400002
2T7400022
3B1000110
3B3000110
3B4000130
3B4000150
3B4000160
3B4403530
3B4411011
3B4411012
3B4411013
3B4411014
3B4411015
3B4411016
3B4411017
3B4411018
3B34411019
3B4411021
3B4411022
3B4411023
SHIPSNAME&REGISTERPORTNAME
SHIPSIDELETTER
MISCELLANEOUSMARK
LAYOUTOFHULLOUTFITTINGS
ARRTOFLIFEBOATHANDLING(FREEFALL)
ARRTOFRESCUEBOATHANDLING
BOWMARK
CARGOPIPINGGUIDANCE
STANDARDOFHULLPIPING
INSTALLATIONGUIDANCEFORG.R.PPIPE
ARRTOFOUTFITTINGSFORSTERN
ARRTOFOUTFITTINGSFORD/B
ARRTOFOUTFITTINGINHOLDSPACE/COFFERDAM
ARRANGEMENTOFUNDERDECKPASSAGEWAY
ARRGTOFOUTFITTINGSINW.B.TANK
ARRTOFHEATINGCOILINCOFFERDOM
ARRGTOFOUTFITTINGSFORPUMPTOWER
PUMPTOWERTUBULARSTRUCTURE
PUMPTOWERLOWERSECTION
PUMPTOWERDETAILSOFPLATFORMS&LADDERS
PUMPTOWERDETAILSOFCABLEWAY
PUMPTOWERDETAILSOFOTHERDEVICES
PUMPTOWERGUIDINGSYSTEM
PUMPTOWERDETAILSOFCARGOPUMPSSUPPORT
LIQUIDDOMECOVER
LIQUIDDOMEPENETRATION
GASDOMEPENETRATION
ARRTOFAMMONIAINJECTIONLINE&REFERENCELEAK
59
158/273
6/14/2016
C3F1
No.
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
EX10.18
HULLOUTFITTINGDESIGN
SECTION
DWG
DRAWING
No.
NAME
3B4411024
3B4411026
3B4411027
3B4411028
3B5000150
3B5000160
3B5000180
3B5000190
3B5840126
3B6000110
3B6000510
3B6403520
3B7000100
3B8000110
3B8000120
3J4411015
3J6121001
3J6141002
3J7000021
3J7000022
3J7000023
3J8142001
3T403003
6J5132002
6J5138001
6J5138008
6J5138011
6J5138012
6J5165001
SPRAYINGSYSTEMPRINCIPLE
PUMPTOWERBASESUPPORT
PUMPTOWERSTRESSANALYSIS
CARGOTANKVOLUME&STRESSANALYSIS
ARRTOFOUTFITTINGSONUPPERDECK&TRUNKDECK
ARRTOFOUTFITTINGSONCARGODOMECOVER
ARRGTOFOUTFITTINGFORCARGOMACH/MOTORROOM
ARRGTOFOUTFITTINGINREGASUNITSPACE
ARRGTOFOX/ACBOTTLE&PIPING
ARRTOFOUTFITTINGSFORFORESHIP
ARRGTOFOUTFITTINGSFORFWDPUMPROOM
ARRTOFHEATINGCOILINFWDF.O.TANK
SAFETYPLAN
ARRTOFOUTFITTINGSFORAFTDECK
ARRGTOFOUTFITTINGSFOREMCYDIGROOM
VENTMASTWITHCOWLFORVENTSTACK
ARRTOFANCHORHANDLING
FOREMAST
STANDARDOFHULLOUTFITTINGS(1/3)
RADARMAST
LIFTINGLUGFORCARGOEQUIPMENT
HOSEHANDLINGCRANE
PROVISIONCRANE
BOSUNSTOREDAVIT
CARGOMACHINERYROOMSERVICECRANE
CARGOPUMPHANDLINGDAVIT
ACCOMMODATIONLADDER
60
159/273
6/14/2016
C3F1
No.
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
EX10.18
SECTION
DWG
DRAWING
No.
NAME
6J5165008
6J5221007
6J7116002
6J7122001
6J7122006
6J8221004
6J8221005
6J8223002
6J8223005
6T4232016
6T4411001
6T4411002
6T4412022
6T4412023
6T5411003
6T5411006
675411007
6T5411008
6T5411009
6T5411021
6T5411022
6T5411023
6T5411024
6T5411025
6T5415007
6T7140123
617140155
6T7401011
PILOTSLANTLADDER&ROPELADDERREEL
LIFESAVINGEQUIPMENT
EMERGENCYTOWINGSYSTEM
DECKMACHINERY
QUICKRELEASEHOOKUNIT
LIFEBOAT(FREEFALL)
LIFEBOATDAVIT
RESCUEBOATDAVIT
RESCUEBOAT
CARGOVALVEREMOTECONTROLANDE.S.DSYSTEM
CARGOPUMP
CARGOSPRAYPUMP
RELIEFVALVEFORCARGOTANKANDINSULATIONSPACE
RELIEFVALVEFORCARGOPIPING
HIGHANDLOWDUTYCARGOCOMPRESSOR
HEATEXCHANGERSFORCARGOSYSTEM
AUXILIARYCOOLINGFRESHWATERPUMP
DRAINCOOLERFORGASHEATER
FRESHWATERCOOLERFORCARGOSYSTEM
REGASIFICATIONSYSTEM
SHIPTOSHIPTRANSFERSYSTEM
ODORIZATIONSYSTEM
HIGHINTEGRITYPRESSUREPORTECTIONSYSTEM(HIPPS)SYSTEM
GASMETERINGSYSTEM
PRESSURECONTROLVALVEFORN2BLEEDLINE
INERTGASGENERATOR(N2GASGENERATOR)
WATERSPRAYSYSTEM
BELLOWSTYPEEXPANSIONCOUPLING
61
160/273
6/14/2016
C3F1
No.
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
EX10.18
SECTION
DWG
DRAWING
No.
NAME
6T7401021
6T7412025
6T7412026
6T7412027
6T7412028
6T7412029
6T7412031
6T7418001
6T7415002
6T7431003
6T7432001
6T7432003
6T7432004
6T7511009
6T7512001
6T8000001
6T8000004
6T8000006
6T8000007
7B7000002
7B7711001
7T7000002
7T7140400
7T7410100
7T7410200
7T7410300
7T7412013
FUELOILTRANSFERPUMP
CRYOGENICBUTTERFLYVALVES
CRYOGENICN.R.VALVES
CRYOGENICBALLVALVE
CRYOGENICGLOVEVALVE
CRYOGENICGATEVALVE
CARGOPIPEINSULATION
TRIMANDLISTINDICATOR
INERTGASSYSTEM
GASDETECTIONSYSTEM
CO2FIREEXTINGUISHINGSYSTEM(FIXED)
DRYCHEMICALPOWDERFIREEXTINGUISHINGSYSTEM
HIGHEXPANSIONFOAMFIREEXTINGUISHINGSYSTEM
HYDRAULICVALVECONTROLSYSTEM
TANKLEVEL/DRAFTGAUGE
CUSTODYTRANSFERSYSTEM
FLOATTYPELEVELGAUGESFORCARGOTANK
GASFLOWMETER
LOCALN2FLOWMETER
ONBOARDTESTPROCEDUREFORHULLOUTFITTINGPART
INVENTORYLIST(HULLPART)
PRESSURETESTINGPROCEDUREFORCARGOPIPINGSYSTEM
LN2TRIALPROECURE
ONBOARDTESTPROCEDUREFORCARGOHANDLINGSYSTEM
GASTRIALPROCEDURE
CARGOOPERATIONMANUAL
CALCULATIONTABLESFORCARGOHANDLINGSYSTEM
62
161/273
6/14/2016
C3F1
No.
113
114
115
116
117
118
119
120
EX10.18
SECTION
DWG
DRAWING
No.
NAME
7T7412017
7T7412019
7T7412021
7T7412023
7T7412025
7T7412027
PIPINGSTRESSANALYSISVAPOR7GASMAINTANKNO.1,2,3,4
PIPINGSTRESSANALYSISLIQUIDMAINTANKNO.1,2,3,4
PIPINGSTRESSANALYSISSTRIPPING&SPRAYINGMAINTANKNO.1,2,3,4
PIPINGSTRESSANALYSISSAFETYVAVLESEXHAUSTSTANKNO,1,2,3,4&HPNG
PIPINGSTRESSANALYSISCARGOCOMPRESSORROOM
PIPINGSTRESSANALYSISDUALFUELENGINELINE,GASCOMBUSTIONUNIT
LINE&HEAVIERCOMPONENTSRETURNLINE
7T7412029 PIPINGSTRESSANALYSISSPRAYINGRAMPSINTANKSTANKNO.1,2,3,4
7T7412031
PIPINGSTRESSANALYSISHIGHPRESSURELINETOMANIFOLD&REGASIFICATION
SYSTEMLINE
C3F4
No.
1
2
3
4
5
6
7
8
9
10
11
ACCOMMODATIONDESIGN
SECTION
DWG
DRAWING
No.
NAME
258230001
258400001
2W8000002
2W8000003
2W8000004
2W8000005
2W8000006
2W8000007
2W8000010
2W8001001
2W8001002
DIAGRAM&ARRTOFVENTILATIONINACCOM
DIAGRAM&ARRTOFPIPINGINACCOM
ACCOMMODATIONPLANONUPPERDECK
ACCOMMODATIONPLANONADECK
ACCOMMODATIONPLANONBDECK
ACCOMMODATIONPLANONCDECK
ACCOMMODATIONPLANONDDECK
ACCOMMODATIONPLANONEDECK
ACCOMMODATIONPLANONNAV.BRI.DECK
STRUCTURALFIREPROT.PLAN
COLORSCHEMEBOOK
63
162/273
6/14/2016
C3F4
No.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
EX10.18
ACCOMMODATIONDESIGN
SECTION
DWG
DRAWING
No.
NAME
3S8230002
3S8400002
3W8162001
3W8165001
3W8168001
3W8261001
3W8271001
3W8400510
3W8711001
658233001
6S8321001
658331001
6S8400003
6W8160001
6W8166001
6W8184001
6W8240001
6W8310001
6W8310003
6W8320001
6W8321002
6W8330001
758000004
7S8000007
STANDARDPRACTICEINACCOMMODATION(1/6)(AIRCON.ANDVENTSYSTEM)
STANDARDPRACTICEINACCOMMODATION(2/6)(PIPINGSYSTEM)
MAINSTAIRWAYINACCOM.
LADDER&RAILOND/H
STANDARDPRACTICEINACCOMMODATION(4/6)(DECKHOUSEOUTFITTING)
STANDARDPRACTICEINACCOMMODATION(3/6)(JOINERYWORK)
STANDARDPRACTICEINACCOMMODATION(5/6)(FURNITURE)
ARRTOFFIRECONTROLROOM
INVENTORYLISTINACCOM.
AIRCONDITIONINGPLANT
VACUUMTOILET
PROVISIONREFRIGERATINGPLANT
LOCALFIREFIGHTINGSYS.FORACCOM.
DOOR
ELEVATOR
WINDOWWIPER&C.V.S
WINDOW
GALLEY
MISCELLANEOUSEQTINACCOM.
LAUNDRY
UNITTOILET&SANITARYWARE
COLDPROVISIONCHAMBER
ONBOARDTESTPROCEDUREFORACCOMMODATION
REFRIGERANTLEAKDETECTORSYSTEM
64
163/273
6/14/2016
C3F5
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
EX10.18
MACHINERYOUTFITTINGDESIGN
SECTION
DWG
DRAWING
No.
NAME
3K2000002
3K2000003
3K2000005
3K2520004
3K2810007
3K2830009
3K2840012
3K2840013
3K2840015
3K2870201
3U2000101
3U2000115
3U2000117
3U2000122
3U2000123
3U240010C
3U240010D
3U2860118
3U2860119
3U2870121
6U2232351
6U2402023
6U2811003
6U2831101
6U2833121
6U2843165
6U2843171
KEYPLANOFVENT/D,LADDER&GRATINGINE/R
GENERALARRTOFSPAREPART&TOOLS
ARRGTOFDOOR&INSULATIONINE/R
ARRGT&DET.FORVENTILATIONDAMPERREMOTECONTROLSYSTEM
ARRT&DETAILOFREDUCTIONGEAR&PROPULSIONMOTORSEATING
DETAILOFD/GENGINESEATING
ARRGT&DETAILOFSHAFTWITHDRAWAL
ARRGTOFLIFTINGBEAMINE/R
ARRANGEMENTOFWORKSHOP&STORE
INDEPENDENTTANKINE/R
STANDARDPRACTICEINE/R
ARRANGEMENTOFSEACHESTINENGINEROOM
ARRGTOFLIFTINGLUGINE/R
ARRGTOFTKTOPHOLES&D/BTANKSINE/R
ARRANGEMENTOFSHIPSIDEVALVE&DETAILOFPIPEINENGINEROOM
ARRGTOFVENTHOODSPACEINE/R
ARRGTOFG.C.UINE/R
ARRGT&DET.OFMAINENGINEEXH.GASPIPE
ARRANGEMENTOFMAINFUNNEL
ARRANGEMENTOFHULLTANKINE/R
E/RVENTFANS
FLOWMETER
GASCOMBUSIONUNIT
MAIND/GENGINE
REDUCTIONGEAR
PURIFIERS
OILYBILGESEPARATOR
65
164/273
6/14/2016
C3F5
No.
28
29
30
31
32
33
34
35
36
37
38
39
EX10.18
MACHINERYOUTFITTINGDESIGN
SECTION
DWG
DRAWING
No.
NAME
6U2843173
6U2844172
6U2844173
6U2846185
6U2846193
6U2846197
6U2847219
6U2852301
6U2852302
6U2853303
7U2000501
7U2000502
WATERMISTFIREFIGHTINGSYSTEM
PISTONTYPECOMPRESSORS
SCREWTYPECOMPRESSORS
FRESHWATERGENERATOR(DISTILLINGPLANT)
MARINEGROWTHPREVENTINGSYSTEM
SEWAGETREATMENTPLANT
E/RCRANE
AUXILIARYBOILER
INCINERATOR
EXHAUSTGASECONOMIZER
LUBOILCHART
ONBOARDTESTPROCEDURE
C3F9
No.
1
2
3
4
5
6
7
8
9
10
ELECTRICOUTFITTINGDESIGN
SECTION
DWG
DRAWING
No.
NAME
2E2000301
2E2520309
2E2610201
2E6000017
2E6000018
2E7000304
2E7000401
2E7610202
2E7611203
2E7641103
G/AOFELEC.EQUIP.INE/RANDS/GROOM
ARRANGEMENTOFNO1.ANDNO2.MAINSWITCHBOARDROOM
W/DOFLIGHTINGSYSTEMINE/R
GENERALARRANGEMENTOFELECTRICEQUIPMENTINCARGOMACHINERY
ARRANGEMENTOFNO.1AND2CARGOSWITCHBOARDROOM
G/AOFELECTRICEQUIPMENTONDECK
ONBOARDTESTPROCEDUREOFELEC.EQUIP.
WIRINGDIAGRAMOFLIGHTINGSYSTEMEXCEPTE/R
ARRANGEMENTOFNAVIGATIONLIGHT
WIRINGDIAGRAMOFPOWERSYSTEM
66
165/273
6/14/2016
C3F9
No.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
EX10.18
SECTION
DWG
DRAWING
No.
NAME
2E8000303
2N2520306
2N2520307
2N6000004
2N6000013
2N6000029
2N7000201
2N7000203
2N7183304
2N7430403
2N7520102
2N7520105
2N8000204
2N8000206
2N8000301
2N8838401
3C7620001
6E2638106
6E2641108
6E2641109
6E2642112
6E2831101
6E2838105
6E2848107
GENERALARRANGEMENTOFELECTRICEQUIPMENTINACCOMMODATION
ARRANGEMENTOFCARGOCONTROLROOM
ARRTOFENGINECONTROLROOM
INSTRUMENTLISTFORCARGOPART
WIRINGDIAGRAMOFCONTROLANDINSTRUMENTATIONFORCARGOSYSTEM
ONBOARDTESTPROCEDUREOFCARGOCONTROLANDINSTRUMENTATIONSYSTEM
WIRINGDIAGRAMFORCOMMUNICATION&NAVIGATIONEQUIPMENT
TESTPROCEDUREFORNAUTICALEQUIPMENT
ARRGTOFECHOSOUNDER&LOG
WIRINGDIAGRAM&ARRANGEMENTOFFIRE&GENERALALARMSYSTEM
WIRINGDIAGRAMFORCONTROLANDINSTRUMENTATIONFORMACHINERY
ONBOARDTESTPROCEDUREFORE/RMACHINERYCONTROLSYSTEM
ARRANGEMENTOFANTENNAEXTENSION
ARRANGEMENTOFELECTRICEQUIPMENTROOM
ARRANGEMENTOFWHEELHOUSEANDCHARTSPACE
ARRANGEMENTOFBATTERYROOM
STANDARDOFCABLEINSTALLATION
LVTRANSFORMER
LVMAIN&CARGOSWITCHBOARD
LVSWITCHBOARD
TESTPANEL
MAINGENERATOR
HVTRANSFORMER
ELECTRICWELDER
67
166/273
6/14/2016
C3F9
No.
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
EX10.18
SECTION
DWG
DRAWING
No.
NAME
6E7612217
6E7621301
6E7641107
6E7641110
6E7643111
6E7643112
6E7710401
6E7841105
6E7841106
6E7841107
6E8611201
6E8641109
6E8643114
6E8831103
6N2521101
6N2521102
6N2521105
6N2522110
6N2522112
6N2522113
6N2522116
6N2522117
6N2522118
6N2522129
6N2522130
6N2522131
6N7181303
6N7182313
6N7182314
LIGHTINGFIXTURE
ELECTRICCABLE
PROPULSIONCONVERTER
DISTRIBUTIONBOARD
GROUPSTARTERPANEL
LOCALGROUPSTARTERPANELANDINDIVIDUALSTARTER
SPAREPARTSLIST
ELECTRICPROPULSIONMOTOR
ELECTRICMOTOR
PORTABLEVIBRATIONMEASUREMENTFORSPM
GROUPCONTROLPANEL
EMERGENCYSWITCHBOARD
EMERGENCYSTOPSWITCHBOX
EMERGENCYGENERATOR
ENGINEROOMCONTROLCONSOLE
INTEGRATEDAUTOMATIONSYSTEM(IAS)
LIGHTSIGNALCOLUMN
ATMOSPHERICOILMISTDETECTORINE/R
PRESSUREGAUGEBOARD
PRESSUREINDICATINGSYSTEM
TEMP.INDSYSTEM
LEVELSWITCH
LEVELINDICATINGSYSTEM
PERFORMANCEMONITORINGSYSTEM
AIRLOCKALARMSYSTEM(CARGOMOTORROOM)
WATERDTECTORININSULATIONSPACE
AUTOPILOTANDGYROCOMPASS
WHISTLE
AUTOFOGBELL&GONGSYSTEM
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6/14/2016
C3F9
No.
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
EX10.18
SECTION
DWG
DRAWING
No.
NAME
6N7183107
6N7183307
6N7183308
6N7212203
6N7212205
6N7212207
6N7212209
6N7212210
6N7212212
6N7212213
6N7281212
6N7431401
6N7838402
6N8181304
6N8181313
6N8181315
6N8181317
6N8182305
6N8182310
6N8182311
6N8182316
6N8184404
6N8521102
6N8521104
6N8521105
6N8631201
6N8631211
6N8631213
6N8631215
RUDDERANGLEINDICATORSYSTEM
SPEEDLOG
ECHOSOUNDER
AUTOMATICTELEPHONE
COMMONBATTERYTELEPHONE
BRIDGEWATCHMONITORINGSYSTEM
PUBLICADDRESSANDTALKBACKSYSTEM
MISCELLANEOUSCOMMUNICATIONSYSTEM
SHIP/SHORECOMMUNICATIONSYSTEM
EMERGENCYSHUTDOWNSYSTEM
COMMUNALAERIALSYSTEM
FIREDETECTIONSYSTEM
STORAGEBATTERY
MAGNETICCOMPASS
D.G.P.S
INTEGRATEDNAVIGATIONSYSTEM
NAVTEXEQUIPMENT
RADAREQUIPMENT
WEATHERFACSIMILERECEIVER
ANEMOMETERANDANEMOSCOPE
CCTVSYSTEM
CLOCK
BRIDGECONTROLCONSOLE
BRIDGEWINGCONTROLCONSOLE
ENGINECONTROLROOMCONSOLE
MF/HFRADIOEQUIPMENT
VHFRADIOTELEPHONE
VHFPORTABLETRANSCEIVER
SATELLITECOMMUNICATIONEQUIPT(FTYPE)
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C3F9
No.
93
94
95
96
97
98
99
100
EX10.18
SECTION
DWG
DRAWING
No.
NAME
6N8631217
6N8631218
6N8631220
6N8631221
6N8631222
6N8641403
6N8641404
6N8641406
SATELLITECOMUNICATIONEQUIPT(CTYPE)
UHFONBOARDCOMMUNICATIONEQUIPMENT
AUTOMATICIDENTIFICATIONSYSTEM
VOYAGEDATARECORDER
SHIPSECURITYALERTSYSTEM
BATTERYCHARGERANDDISTRIBUTIONBOARD
U.P.S
SIGNALSOUNDRECEPTIONSYSTEM
C3J1
No.
1
2
3
4
5
6
7
8
9
10
11
DESIGNCOORDINATIONSECTION
1
DWG
DRAWING
No.
NAME
2G7000004
2G7000012
2G7000013
4G7000002
6G7000001
7G7000007
7G7000008
7G7000009
7G7000018
8G7000004
8G7000006
CAPACITYPLAN&DEADWEIGHTSCALE
DOCKINGPLAN
LINESOFBILGEKEEL
DRAFTMARK
LOADINGCOMPUTER(ONLINE)
PROCEDUREOFCARGOTANKCALIBRATION
PROCEDUREOFINCLININGEXPERIMENT&LIGHTWEIGHTMEASUREMENT
PROCEDUREOFSEATRIAL
LISTOFDRAWINGFORAPPROVAL(OWNER)
RESULTOFINCLININGEXPERIMENT&LIGHTWEIGHTMESURMENT
RESULTOFSEATRIAL
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C3J5
No.
1
2
3
4
EX10.18
ANTICORROSIONDESIGN
SECTION
DWG
DRAWING
No.
NAME
1P7030002
1P7030003
2P7033007
4P7033016
PAINTINGSPECIFICATION
COATINGTECHNICALFILE
ARRGTOFI.C.C.P
ARRGTOFANODES
C410
No.
PROJECT&PRODUCTIONPLANNING
DEPT
DWG
DRAWING
No.
NAME
7H7030060 DETAILSOFWELDJOINTSFORHULL&OUTFITTINGS
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EX10.18
SCHEDULE9NOVATIONAGREEMENT
Thisagreementismadeon[]
Between
(1)
PTPerusahaanGasNegara(Persero)Tbk,astateownedlimitedliabilitycompanyestablishedunderIndonesian
GovernmentRegulationsandhavingitsprincipalofficeatJI.K.H.ZainulArifinNo.20,Jakarta1140,Indonesia(the
ContinuingParty)
(2)
HeghLNGLimitedacompanyincorporatedunderthelawsofBermudaandwithitsregisteredofficeatCanonsCourt,
22VictoriaStreet,HamiltonHM12,Bermuda(theTransferor)and
(3)
[insertnameofIndonesianOwner],acompanydulyincorporatedinIndonesiaandwithitsregisteredofficeat[Insert](the
Transferee).
Recitals
A.
TheContinuingPartyandtheTransferorarepartiestoagreements,copiesofwhicharesetoutinthefirstschedulehereto
(theSubjectAgreements).
B.
UndertheSubjectAgreements,TransferoragreestoleasetotheContinuingParty,andoperateandmaintain,afloating
storageandregasificationunitandprocureamooringsystem(FSRU&M)inconnectionwiththeLampungLNG
FloatingStorageandRegasificationFacilitiesProjectandtoassumejointandseveralliabilitiesforcertainobligations.
C.
TheTransferorwillorwillprocuretransferofownershipoftheFSRU&MtotheTransfereeonoraboutthedateofthis
agreement.
D.
TheTransferorwishestobereleasedfromallitsobligationsandliabilitiesandtransferallitsrightsundertheSubject
AgreementstotheTransferee,andtheContinuingPartyagreestosuchrelease.TheTransfereewishestoassumesuch
obligationsandliabilities.
Operativeprovisions
Novation
1.
Inconsiderationoftheotherpartiesenteringintotheirrespectiveobligationsunderthisagreement,[witheffectfromthe
dateofthisagreement]:
1.1
theContinuingPartyherebyreleasesanddischargestheTransferor(includingwithoutlimitationinrespectof
anybreachoftheSubjectAgreementsbytheTransferorantecedenttotheEffectiveDate)fromallofthe
TransferorsobligationsandliabilitiesunderorinconnectionwiththeSubjectAgreements,andfromallclaims
anddemandswhatsoeverarisingundertheSubjectAgreementsonorafterthedateofthisagreement(the
EffectiveDate)andtheTransferorherebyceasestobeapartytotheSubjectAgreements
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EX10.18
1.2
saveasprovidedinsection9ofSchedule6oftheSubjectAgreemententitledtheAmendedandRestatedLease
OperationandMaintenanceAgreement,theTransferorherebyassignsallofitsrightsundertheSubject
AgreementstotheTransferee(including,withoutlimitation,inrespectofanybreachbytheContinuingPartyof
theSubjectAgreementsantecedenttotheEffectiveDate),andallobligationsandliabilitiesoftheContinuing
PartytotheTransferorundertheSubjectAgreementsherebycease
1.3
theTransfereeherebyagreestoassumeandperformtheobligationsandliabilitiesfromwhichtheTransferoris
releasedanddischargedpursuanttoclause1.1ofthisagreement(including,withoutlimitation,inrespectofany
breachoftheSubjectAgreementsbytheTransferorantecedenttotheEffectiveDate)andtobeboundbyits
termsinallrespectsasiftheTransfereehadbeennamedasapartytheretoinplaceoftheTransferorand
1.4
theContinuingPartyherebyagreestoperformtheContinuingPartysobligationsandliabilitiesunderorin
connectionwiththeSubjectAgreementsandtobeboundbyitstermsinallrespectsasiftheTransfereehadbeen
namedasapartythereto,inplaceoftheTransferor.
2.
ThetermsofthisagreementareconditionalupontheTransfereehavingprocuredonorbeforeexecutionofthisagreement
thedeliverytotheContinuingPartyofaguaranteesubstantiallyintheformsetoutinthesecondscheduletothis
agreement(theIndonesianOwnerGuarantee).
3.
PromptlyfollowingexecutionofthisagreementtheTransfereeshallprovidetotheContinuingPartycustomarylegal
opinionsinformandsubstancereasonablysatisfactorytotheContinuingPartyfromareputablecounselrelatingtothe
enforceabilityoftheIndonesianOwnerGuarantee,thepowerandauthorityoftheGuarantortoenterintoandperformthe
IndonesianOwnerGuaranteeanddueexecutionbytheGuarantorofIndonesianOwnerGuaranteeandwordsdefinedin
theSubjectAgreementsshallhavethesamemeaninginthisclause.
Notices
4.
ForthepurposesoftheSubjectAgreements,theTransfereesaddressfornoticesshallbeasfollows:
Address:[]
FaxNo:[]
Addressedforthepersonalattentionof:[]
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EX10.18
Counterparts
5.
Thisagreementmaybeexecutedinanynumberofcounterpartsandbythepartiestoitonseparatecounterparts,eachof
whichshallbeanoriginal,butallofwhichtogethershallconstituteoneandthesameInstrument.
Governinglawandarbitration
6.
ThisagreementshallbegovernedbyandconstruedinaccordancewiththelawsofRepublicofIndonesia.
7.
Anydisputearisingoutoforinconnectionwiththeagreement,includinganyquestionregardingitsexistence,validity
ortermination,shallbereferredtoandfinallyresolvedbyarbitrationinSingaporeinaccordancewiththeArbitration
RulesoftheSingaporeInternationalArbitrationCentre(SIACRules)forthetimebeinginforce,whichrulesare
deemedtobeincorporatedbyreferenceinthisClause.TheTribunalshallconsistof3arbitrators.Thelanguageofthe
arbitrationshallbeEnglish.
8.
ItisherebyagreedthatanarbitraltribunalconstitutedunderoneorbothoftheSubjectAgreementsmayconsolidatean
arbitrationhereunder.
9.
Eachpartyagreesthatitwillnotinstituteanycourtproceedingsarisingoutoforinconnectionwiththisagreement(and,
intheeventofconsolidation,theIndonesianOwnerGuarantee,orUmbrellaAgreement)exceptonlytoenforceinany
courthavingjurisdictionanyawardrenderedbythearbitraltribunal.
10.
Decisionsofthearbitraltribunalshallbebindinginfinalinstanceuponthepartieshereto.Thepartiesheretoexpressly
agreeinaccordancewithLawNo.30of1999onArbitrationandAlternativeDisputeResolution(theArbitration
Law)thatindecidingthedisagreementordispute,thearbitratorsshallbeboundbystrictrulesoflaw,andmaynot
purporttodecidethesameexaequoetbono.ThepartiesfurtheragreetowaiveanyIndonesianlawsandregulations,
decreesorpolicieshavingtheforceoflawthatwouldotherwisegivearighttoappealanyarbitrationdecisionoraward,
andtotheextentapplicable,assuchthatinconformitywithArticle60orArbitrationLaw,thereshallbenoappealand/or
cessationtoanycourtoflawfromthedecisionofthearbitratorsandthepartiesshallnotchallengeorresistthe
enforcementactiontakenbythepartyinwhosefavourthedecisionofthearbitratorswasgiven.
11.
ThepartiesheretoexpresslyagreetowaivetheapplicabilityofArticle48.1oftheArbitrationLawassuchthatthe
mandateofthearbitratorsdulyconstitutedinaccordancewiththetermsofthisLeaseshallremainineffectuntilafinal
arbitralawardhasbeenissuedbythearbitrators.
GoverningLanguage
12.
ThisagreementisexecutedintheEnglishlanguage.IncompliancewithLawNo.24of2009regardingNationalFlag,
Language,EmblemandSong,thepartiesagreetotranslatethisagreementintotheIndonesianlanguagewithin90daysas
ofthedateofthis
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EX10.18
agreementoranyotherdateasagreedbetweentheparties.TheIndonesianlanguageagreementshallhavethedateofthis
agreementasitseffectivedate.SuchIndonesianlanguageversionshallformanintegralandinseparablepartofthe
Englishversion.IntheeventofinconsistenciesordifferencesininterpretationbetweentheEnglishandIndonesiantexts,
theEnglishversionshallprevailandtherelevantIndonesianversionshallbedeemedtobeautomaticallyamendedto
conformwithandtomaketherelevantIndonesiantextconsistentwiththerelevantEnglishtext.
13.
Furthermore,eachpartyagreesitwillnotciteorinvokeLaw24/2009oranyregulationissuedthereunder,orclaimthat
thefactthisagreementwasexecutedintheEnglishlanguageonly,to:
13.1
13.2
allegethatthisagreementisagainstpublicpolicyorotherwisedoesnotconstituteitslegal,validandbinding
obligations,enforceableagainstitinaccordancewithits
INWITNESSthisagreementhasbeendulyexecutedonthedatesetoutabove.
Signature
Name
Capacity
Date
(Persero)Tbk
Signature
Name
Capacity
Date
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EX10.18
Signedforandonbehalfof[insertdetailsof
Transferee]
Signature
Name
Capacity
Date
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EX10.18
Schedule1toNovationAgreement
[InsertcopyoftheSubjectAgreements]
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EX10.18
Schedule2toNovationAgreement
INDONESIANOWNERGUARANTEE
Thisdeedismadeon[]
Between
[](theGuarantor)and
PTPerusahaanGasNegara(Persero)Tbk,astateownedlimitedliabilitycompanyestablishedunderIndonesianGovernment
RegulationsandhavingitsprincipalofficeatJI.K.H.ZainulArifinNo.20,Jakarta1140,Indonesia(theCompany)
Recitals
A.
TheCompanyhasenteredintoanamendedandrestatedlease,operationandmaintenanceagreementdated[](the
LOM)with[insertnameofOwner](Transferor)andanumbrellaagreementdated[]withtheTransferorandPT
RekayasaIndustri(theUmbrellaAgreement)andtogetherwiththeLOM,theOriginalAgreements).
B.
UndertheLOM,theTransferoragreestoleasetoCompany,andoperateandmaintain,afloatingstorageand
regasificationunitandprocureamooringsysteminconnectionwiththeLampungLNGFloatingStorageand
RegasificationFacilitiesProject.
C.
UndertheUmbrellaAgreement,theTransferoragreedtoassumejointandseveralliabilityforcertainobligations.
D.
Byanovationagreementdated[](theNovationAgreement),theTransferorisreleasedfromallitsobligationsand
liabilitiesandtransfersallofitsrightsundertheOriginalAgreementsto[insertnameofIndonesianOwner](the
Owner),andtheOwnerassumestheTransferorsobligations,liabilitiesandrightsundertheOriginalAgreements.The
OriginalAgreementsasnovatedinaccordancewiththeNovationAgreementshallbereferredtoastheAgreements.
E.
TheGuarantorhasagreedtoguaranteetotheCompanythedueandproperperformancebytheOwnerofalltheOwners
obligationsandliabilitiesundertheAgreements(theGuaranteedObligations)onthetermsofthisdeed.
Operativeprovisions
1.
Guarantee
TheGuarantorhereby:
(a)
agreesandguaranteestotheCompany,asanindependentandprimaryobligorandnotonlyassurety,thatifthe
OwnerbreachesanyoftheGuaranteedObligations,thentheGuarantorshallontheCompanysdemandperform
thatGuaranteedObligationinplaceoftheOwner
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EX10.18
(b)
acknowledgesandagreesthatnovariationoforalterationtothetermsoftheGuaranteedObligationsortotheir
extent,natureormethodofperformance,andnoallowanceoftime,waiver,forbearance,forgiveness,indulgence,
compromiseorotherdealingunderorinconnectionwiththeAgreementsoranyrightorremedyarising
thereunder,andnoinvalidity,illegality,unenforceabilityorirregularityoftheAgreementsorofanyprovision
thereof,andnootheract,omissionordefaultwhich(butforthisprovision)mighthaveoperatedtorelease,
exonerateordischargetheGuarantororotherwisereduce,extinguishoradverselyaffectanyliabilityofthe
Guarantorunderthetermsofthisdeedshallinanywayrelease,exonerateordischargetheGuarantorfromany
liabilityunderthetermsofthisdeedorotherwisereduce,extinguishoradverselyaffectanysuchliability,and
theGuarantorherebywaivesanyrequirementfornoticetoitofanysuchevent
(c)
confirmsthatithasfullpowerandcapacitytoenterintothisdeedandagreesthatthisdeedshallnotbe
revocablebytheGuarantor,shallbeacontinuingguarantee,shallbeadditionaltoandnotinsubstitutionfor
anyrightsorremediesthattheCompanymayhaveagainsttheOwnerundertheAgreementsoratlaw,shallbe
additionaltoanyotherguaranteeorsecurityfromtimetotimeheldbytheCompany,shallnotbeaffectedbyany
releaseorwaiverofanysuchguaranteeorsecurityandshallremaininfullforceandeffectnotwithstandingthe
windingup,liquidation,receivership,administration,voluntaryarrangementorothercompositionwithcreditors
(oranyeventequivalentoranalogoustoanyoftheforegoingunderthelawofanyjurisdiction)oftheOwneror
iftheOwnerisunabletopayitsdebts(asdefinedbysections123(1)and268(1)oftheInsolvencyAct1986,as
amended)
(d)
agreesthatallsumspayablebytheGuarantorunderthisdeedshallbepaidtotheCompanyinfull,freeofall
presentorfuturetaxes,levies,duties,charges,fees,withholdingsordeductions(togetherreferredtoas
Deductions)and,iftheGuarantoriscompelledbylawtomakeanyDeduction,theGuarantorwillgrossupthe
paymentsothatthenetsumreceivedbytheCompanyisequaltothefullamountwhichtheCompanywould
havereceivedhadnosuchDeductionbeenmade
(e)
agreesthat,aslongastheOwnerremainsunderanyactualorcontingentliabilityunderthetermsofthe
Agreements,itshallnottakeanysecurityfromtheOwnerinconnectionwiththisdeed(and,iftaken,anysuch
securityshallbeheldbytheGuarantorassecurityforitsliabilitytotheCompanyunderthisdeed)ortakeany
steptoenforceanyrightorclaimagainsttheOwnerinrespectofanypaymentmadeunderorliabilityarising
fromorinconnectionwiththisdeedorexerciseanyrightsasGuarantorincompetitionwiththeCompany
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EX10.18
(f)
agreesthattheobligationsoftheGuarantorunderthisdeedandtheOwnerundertheAgreementareindependent
andseveralobligations,andaccordinglythattheCompanyshallnotbeobliged,beforeenforcinganyofits
rightsorremediesunderthisdeed,tocommenceproceedingsortakeanyotheractionagainsttheOwneror
enforceanyotherguaranteeorsecurityfromtimetotimeheldbytheCompanyinrespectoftheGuaranteed
Obligationsand
(g)
agreesthattheCompanyshallbeentitledtoassignanyorallofitsrightsorbenefitsunderthisdeed(whetheror
notaccrued)atanytimetoanypersonwhotakesanassignmentofanyoftherightsundertheAgreementsorthe
benefitthereof,subjectmutatismutandistothesameterms.
2.
Claimsprocedure
(a)
Anydemandunderthisdeedshallbeinwritingandshallbeservedpersonallyorbyfirstclassprepaidpostor
byfax.Theaddress,faxnumberandattentionforserviceofanydemandupontheGuarantorshallbetheaddress,
faxnumberandattentionstatedinclause2(c)beloworsuchotheraddress,faxnumberorattentionasmayfrom
timetotimebenotifiedinwritingbytheGuarantortotheCompany.
(b)
Ademandshallbedeemedtobereceivedinthecaseof:
(i)
prepaidpost,onthedayitisreceived
(ii)
deliverybyhand,whensodeliveredand
(iii)
fax,uponthereceiptbythesenderofatransmissionreportfromthedispatchingfaxwhichconfirmsthat
allofthepagescomprisedinthedemandhavebeensuccessfullysenttotheGuarantorsfaxnumber,
providedthat,inthecaseofserviceinaccordancewithclauses2(b)(ii)and2(b)(iii),ifthedateofreceiptofthe
demandisnotabusinessdayinthecountryoftherecipient,orifthedemandisreceivedoutsidethehoursof
9.00a.m.to5.00p.m.,itshallbedeemedtohavebeenreceivedat9.00a.m.onthenextbusinessday.
(c)
Theaddress,faxnumberandattentionforserviceofdemandsupontheGuarantorare:
Address:[insertdetails]
FaxNo.:[insertdetails]
Attention:[insertdetails]
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3.
EX10.18
Nowaiverandprovisionsseverable
(a)
NofailureordelaybytheCompanyinexercisinganyrightorremedyshalloperateasawaiver,norshallany
singleorpartialexerciseorwaiverofanyrightorremedyprecludeitsfurtherexerciseortheexerciseofanyother
rightorremedy.
(b)
Eachoftheprovisionsofthisdeedisseverablefromtheothers,andifforanyreasonanysuchprovisionisor
becomesineffective,inoperable,invalidorunenforceableitshallbeseveredanddeemeddeletedfromthisdeed,
andinsucheventtheremainingprovisionsofthisdeedshallcontinuetohavefullforceandeffect.
4.
Governinglawandforum
(a)
ThisdeedshallbegovernedbythelawsoftheEngland.
(b)
Anydisputearisingoutoforinconnectionwiththisdeed,includinganyquestionregardingitsexistence,
validityortermination,shallbereferredtoandfinallyresolvedbyarbitrationinSingaporeinaccordancewith
theArbitrationRulesoftheSingaporeInternationalArbitrationCentre(SIACRules)forthetimebeingin
force,whichrulesaredeemedtobeincorporatedbyreferenceinthisclause.
(c)
TheTribunalshallconsistofthreearbitrators.
(d)
ThelanguageofthearbitrationshallbeEnglish.
(e)
[Anarbitraltribunalconstitutedunderthisclause4may,unlessconsolidationwouldprejudicetherightsofany
party,consolidatearbitrationhereunderwitharbitrationundertheLOMand/ortheUmbrellaAgreementifthe
arbitralproceedingsraisecommonquestionsoflaworfact.Iftwoormorearbitraltribunalsunderthisdeedorthe
LOMand/ortheUmbrellaAgreementissuesconsolidationorders,theorderissuedfirstshallprevail.]
(f)
Thedecisionofthearbitrationisfinalandbindingontheparties.Nopartymaybringanappealtoanycourtor
otherauthorityinrelationtothedecisionofthearbitration.Excepttoenforcethedecisionofthearbitration,no
partymaybringanyactioninanycourtinIndonesiaorelsewhereinrelationtotheDispute.
5.
Counterparts
Thisdeedmaybeexecutedinanynumberofcounterparts,eachofwhichwhenexecutedshallbeanoriginal,andallthe
counterpartstogethershallconstituteoneandthesameinstrument.
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6.
EX10.18
Confidentiality
Eachpartyherebyundertakestomaintaintheconfidentialityofthisdeedandmayonlydisclose(exceptwiththewritten
consentoftheotherparty,suchconsentnottobeunreasonablywithheldordelayed)thisdeedto:
(a)
itsAffiliates(asdefinedintheLOM),itsanditsAffiliatesofficers,managementpersonnel,andfinancial
(includingauditingandtaxation),insurance,andlegaladvisorstotheextentreasonablenecessaryforthe
purposesoftheAgreementandthisdeed
(b)
PermittedCreditors(asdefinedintheLOM)and
(c)
acompetentcourt,orforthepurposesofanyarbitration,orexpertorotherdisputeresolutionproceedingunder
thisdeedortheAgreements,orasmayberequiredbylaworanycompetentlegalorregulatoryauthorityhaving
jurisdictionoverthatparty.
7.
GoverningLanguage
(a)
ThisdeedisexecutedintheEnglishlanguage.IncompliancewithLawNo.24of2009regardingNationalFlag,
Language,EmblemandSong,thepartiesagreetotranslatethisagreementintotheIndonesianlanguagewithin
90daysasofthedateofthisdeedoranyotherdateasagreedbetweentheparties.TheIndonesianlanguage
agreementshallhavethedateofthisdeedasitseffectivedate.SuchIndonesianlanguageversionshallforman
integralandinseparablepartoftheEnglishversion.Intheeventofinconsistenciesordifferencesin
interpretationbetweentheEnglishandIndonesiantexts,theEnglishversionshallprevailandtherelevant
Indonesianversionshallbedeemedtobeautomaticallyamendedtoconformwithandtomaketherelevant
IndonesiantextconsistentwiththerelevantEnglishtext.
(b)
Furthermore,eachpartyagreesitwillnotciteorinvokeLaw24/2009oranyregulationissuedthereunder,or
claimthatthefactthisdeedwasexecutedintheEnglishlanguageonly,to:
(i)
(ii)
allegethatthisdeedisagainstpublicpolicyorotherwisedoesnotconstituteitslegal,validandbinding
INWITNESSWHEREOF,thisinstrumenthasbeenexecutedanddeliveredasadeed.
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EX10.18
SCHEDULE10FINANCINGREQUIREMENTS
1.
InthisSchedule:
PermittedCreditorsmeansPersons(includingfinancialinstitutions,multilateralagenciesandexportcreditagencies)
whoattherelevanttimehaveprovidedorarecommittedtoprovidedebtfinancingand/orhedgingarrangementspursuant
totheFinancingAgreementsoranyagentortrusteeforsuchpersons
FinancingAgreementsmeansattherelevanttime:
(a)
allbonds,notesorotherdebtinstrumentsorsecuritiesloans,guarantees,lettersofcreditorothercreditfacilities
financeorcapitalleasesinterest,currencyorcommodityswaps,caps,collars,floorsorotherhedgingagreements
(including,withoutlimitation,optionsrelatingtoanyoftheforegoing)andallotheragreementsorinstruments
creatingorevidencingindebtednessforborrowedmoney,enteredortobeenteredintobetweenOwnerand/or
theIndonesianOwnerand/oranyAffiliatethereofandthePermittedCreditorsinconnectionwiththefinancing
orrefinancingoftheFSRU(allsuchfinancingandrefinancing,theFSRUFinancing)and
(b)
thesecuritydocuments,intercreditoragreements,coordinationagreements,andotherancillaryagreements
requiredpursuanttoanyoftheagreementsorinstrumentsreferredtoinparagraph(a)above.
2.
ItisunderstoodandagreedthattheInitialOwnerand/ortheIndonesianOwnerand/oranyAffiliatethereofmayobtain
FSRUFinancingfromPermittedCreditorswhichincludes,withoutlimitation,commercialbanksandexportcredit
agenciesandthroughtheissuanceofdebtsecuritiesinthecapitalmarkets.InconnectionwithanyFSRUFinancing,
Companyshall,ifsorequestedbyOwner:
(a)
delivertotherelevantPermittedCreditorsortheagentortrusteeactingonbehalfoftherelevantPermitted
Creditors(theLendersAgent)certifiedcopiesofitsconstitutionaldocuments,incumbencycertificates
relatingtotheCompany,financialstatements,andsuchotheritemsassuchPermittedCreditorsortheLenders
AgentmayreasonablyrequestandagreedtobeprovidedbyCompanytakingintoaccountconfidentialityand
regulatoryrestrictionsbutactingreasonablyand
(b)
provideallpubliclyavailableinformationintheCompanyspossessionreasonablyrequestedbytherelevant
PermittedCreditorsortheLendersAgenttofacilitatesuchFSRUFinancing.
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3.
EX10.18
CompanyacknowledgesandagreesthatOwnermaycollaterallyassignanyofitsrightsundertheagreementofwhichthis
scheduleformspart(theAgreement)totheLendersAgentassecurityforitsobligationstotherelevantPermitted
Creditors.Companyagreesthatuponnoticeofsuchcollateralassignmentitshallenterintoadirectagreementwiththe
LendersAgent(theQuietEnjoymentAgreement)pursuanttowhichCompanyshallagree:
(a)
thattheLendersAgentshallbeentitledtoexerciseallrightsandtocureanydefaultsofOwnerunderthe
ContractandtheAgreementandCompanyshallacceptsuchexerciseorcureasthoughithadbeendonebythe
Owner
(b)
thatCompanyshallnot,withoutthepriorwrittenconsentoftheLendersAgent(suchconsentnottobe
unreasonablywithheldordelayed):
(i)
consenttooracceptanycancellationorterminationoftheAgreementbyOwner,or
(ii)
amendtheAgreementinanymaterialrespect
(c)
thatCompanyshallnotmakeanydemandsundertheAgreementonaccountofanydefaultbyOwnerwithout
givingpriorwrittennoticetotheLendersAgentandprovidingtotheLendersAgentanopportunitytocure
suchdefaultand
(d)
thatCompanyshallexecutesuchfurtheragreementsanddocumentsreasonablyrequestedbytheOwner(on
behalfoftheLendersAgent)providingassurancesandotherprotectionstotherelevantPermittedCreditorsin
furtheranceoftheprovisionssetoutinthisparagraph3.
4.
Companyfurtheragrees(andwillagreewiththePermittedCreditorsintheQuietEnjoymentAgreement)thatifthe
relevantPermittedCreditorssucceedtotheinterestsofOwnerbyexerciseofsecurity,foreclosureorotherwise,Company
shallcontinuetoperformallofitsobligationsundertheAgreementandshallrecognisetherelevantPermittedCreditors
oranysubstituteentitynominatedbythePermittedCreditorsintheplaceofOwner.
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EX10.18
SCHEDULE11DELIVERYPROTOCOL
1.
OwnershallnotifyCompanyonFSRUsarrivalinLampunginaccordancewiththetermsofthisagreement.
2.
Companyshallbereadytoprocuredeliveryof,andshalldeliverLNGtotheVessel,andOwnershalltakethatLNG,
withinareasonableperiodafterissueoftheNoticeofReadiness.
3.
Ownershall:
3.1
giveCompanyreasonablenoticeofwhenitisreadytodischargeRegasifiedLNGattheDeliveryPointforperformanceof
theAcceptanceTests,andCompanyshallassoonasreasonablypracticableandinanyeventnolaterthan*****hours
thereafternotifyOwnerofitsreadinesstotakeRegasifiedLNGandshallprocurethatoneormoreDownstreamOfftakers
thentake,thatRegasifiedLNGandeitherpartymayreferadisputeastowhatisreasonableforthepurposesofthis
paragraphtoanExpertfordeterminationand
3.2
performcommissioningofFSRU&MandPipelineSystem,asthefirstpartoftheAcceptanceTest,inordertodeliver
RegasifiedLNGtoDownstreamOfftakers.
3.3
ThePerformanceTestandReliabilityTest(andanyrepetitionthereof)willbeconducteduponthecompletionofthe
commissioninginaccordancewithsection3.2ofthisSchedule11,andwillbeundertakentodetermineiftheFSRU&M
meetstheAcceptanceMinimumRequirementsforthepurposesofthisagreement.
4.
ThePerformanceTestwillbeinaccordancewiththefollowingprinciples:
4.1
Regasification
ThePerformanceTestshallverifythefollowing:
4.1.1
Sendoutrateof240MMscfdattheDeliveryPointforfourhours.
4.1.2
SendoutfromeachLNGregasificationtrainoperatingaloneof45MMscfdforfourhours.
4.1.3
SendoutfromeachLNGregasificationtrainsoperatingaloneof120MMscfdforfourhours.
4.1.4
Actualtimerequiredforrampupoftheregasificationsendoutratefrom0MMscfdto240MMscfdtobe
observedandrecorded.
4.1.5
Actualtimerequiredforrampupandrampdownoftheregasificationsendoutratebetweenminimumand
maximumsendoutratetobeobservedandrecorded.
4.1.6
Alapsetimeofnomorethantwohourrampingupfromminimumsendoutrate(45MMscfd)tomaximumsend
outrate(240MMscfd).
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EX10.18
4.1.7
Alapsetimeofnomorethantwohoursrampingdownfrommaximumsendoutratetominimumsendoutrate.
4.1.8
Thatthenewsendoutratehasstabilizedwithintwohoursofreachingtherampeduporrampeddownsendout
rate.
4.2
DeliveryPoint
ThePerformanceTestsshalltestforanoperatingsendoutpressureof1140psi(g)orsuchpressureasismutuallyagreed
andatemperatureof65FatallregasificationflowratesattheDeliveryPoint.
4.3
LNGLoadingRate
ThePerformanceTestshalltestforaloadingrateof5,000m3/hthroughFlexibleHoseswithmin4.4bar(g)LNGdelivery
pressureatthehoseconnectionfor6hours.
4.4
BoiloffRecondenserSystem
ThePerformanceTestsshalltestforaguaranteedboiloffrecondensersystemcapacityof8t/hratgassendoutrateof240
MMscfd.Thetestisonlypossibletocompleteifthereissufficientboiloffavailablerequiringutilizationofthefull
capacityoftherecondenser.Ifthisisnotthecase,thetestshallbedeemedcompletedaslongastherecondenseris
capableofrecondensingthevolumerequiredunderthegivenboiloffgasbalance,uptomaximum8t/hratagassend
outof240MMscfd.
4.5
FuelConsumption
ThePerformanceTestsshallverifyfuelconsumption,whenattheMooringandregasifyingLNGatarateof240MMscfd
shallnottoexceedtheMaximumFuelConsumptionRateforasendoutrateof240MMscfd.
4.6
SeaWaterTest
ForthedurationofthePerformanceTesttheOwnershallmeasuretheaveragetemperaturedifferencebetweenseawater
inletandseawaterdischargepointsoverthedurationofthetesting,iseightdegreesCelsiusorlessforallmodesofthe
FSRUsregasificationplantoperationinordertopreventthetemperaturedifferencebeingmorethanfivedegreesCelsius
at500meterradiusfromFSRU.Ownerwillhavetheopportunitytoinlieuofmeasuringtheaveragetemperature
differencebetweenseawaterinletandoutlettomeasurethetemperaturedifferenceata500meterradiusfromtheFSRU.
4.7
TestingGuidelines:
4.7.1
LNGQuality:ProcessLNGqualitywillbeintherangeasspecifiedinSchedule1PartB.
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EX10.18
4.7.2
Instrumentation:PerformanceTestrunsshallbeconductedwithcalibratedandvalidatedinstruments.
4.7.3
Duration:ThetimedurationofeachPerformanceTestshallbethatspecifiedabovetoreachstableconditions
withnoupsetsortrips.
4.7.4
Participants:ThetestrunsshallbecarriedoutbytheOwner,witnessedbyrepresentativesoftheCompanyand,if
requiredbytheLaw,anyGovernmentAuthorityrepresentative.
5.
TestVariables:
ThePerformanceTestswilldescribe:
aclearsetoftestandreferenceconditionsaclearsetoftheacceptancecriteriaandprovisionforpunchlist
itemstoberesolvedfollowingAcceptance
aclearprotocolonwhichinstrumentswillbeusedformeasurement
asummaryofinstrumentsthatarebeingusedforthePerformanceTests
thetestduration
howrateincreaseswilltakeplacewithholdpoints
measurementcriteriatoconfirmthatthesystemprocessisstabilizedpriortoaratechange/increase
criteriatocomparetheactualtestrunresultstothedesignfigures
theprocessandutilityvariablestobemeasured/recordedinordertoensurethatthesystemisoperatingwithin
theenvironmentalpermitconditions
theoperatingenvelopeoftheFSRU,suchasheelandmaterialbalances,pumpcurves,andvaporizerperformance
curvesand
thatthealarmstatusofprocessandequipmentisrecordedduringthetestrunperiodtoverifythatthe
performanceisachievedundernormaloperatingconditions.
6.
TheReliabilityTestwillbeinaccordancewiththefollowingprinciples:
TheReliabilityTestshallbeacontinuousperiodofoperationoftheFSRU&Mtodemonstratethesustainedsendout
capacityoftheFSRU&MinaccordancewithAcceptanceMinimumRequirements.TheReliabilityTestshallbeaperiod
of24hoursandtheacceptancecriteriashallincludethefollowing:
thereshallbenounplannedshutdowns
NominationsshallbeinaccordancewiththeNominationProcedure
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EX10.18
OwnershallusereasonableendeavourstodelivertheRegasifiedLNGinaccordancewiththeNominationsand
noWarrantyCompensationshallbepayablebyOwnerand
thecostofallfuelsandbunkers,consumedbytheFSRUwhiletheFSRUisundergoingtheReliabilityTest,
shallbebornebyCompany.
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EX10.18
SCHEDULE12PURCHASETERMS
1.
DefinitionsandInterpretation
1.1
InthisSchedule(thePurchaseTerms)exceptwherethecontextotherwiserequires:
BuyermeansCompany.
CompletionmeansthecompletionofthesaleandpurchaseoftheFSRUinaccordancewiththePurchaseTerms.
CompletionDatemeansthedateonwhichCompletionoccurs.
DeposithasthemeaninggiventothatexpressioninClause3ofthesePurchaseTerms.
FSRUAssetsmeans:
(a)
theFSRU
(b)
thepropertydescribedinClause8ofthesePurchaseTermsand
(c)
anonexclusive,nontransferable,royaltyfree,perpetual,irrevocablelicencetousetheIntellectualProperty
RightsrelatingtotheFSRUforthepurposeofoperatingandmaintainingtheFSRU,totheextentrequired,and
whichOwnerisentitledsotolicencewithoutinfringinganyLaworobligationowedtoathirdparty.
PermittedEncumbrancesmeansworkmenandvendorliensarisingintheordinarycourseofbusiness,ineachcase
withrespecttoobligationsorclaimswhichareeithernotdelinquentorarebeingcontestedingoodfaith.
PurchasePricemeanstheamountdeterminedunderAppendixIofthesePurchaseTerms(lessanyamountalreadypaid
inorpayablerespectoftheOwnerBreachTerminationAmount,theVesselFMTerminationAmounttheNonVesselFM
TerminationAmountortheCompanyBreachTerminationAmount,asapplicable).
RelatedPartiesmeans,inrespectofaPerson,
(a)
AffiliatesofsuchPersonand
(b)
therespectivedirectors,trustees,officers,employees,advisorsandotheragentsandrepresentativesofsuch
PersonoranyAffiliateofsuchPerson.
PartymeansOwnerorBuyer,asthecasemaybe(andPartiesshallbeconstruedaccordingly).
1.2
ExpressionsdefinedorreferredtointheagreementtowhichthisScheduleisappended(theAgreement)havethesame
meaningwhenusedinthePurchaseTerms,exceptwherethecontextotherwiserequires.
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EX10.18
1.3
Unlessthecontextotherwiserequires,clause1.2oftheAgreementshallapplyasifsetoutinthebodyofthesePurchase
Terms,savethatreferencestoClausesinthesePurchaseTermsaretotherelevantclauseofthesePurchaseTermsand
referencestoanAppendixistotherelevantappendixofthePurchaseTerms.
2.
PurchasePrice
CompanywillonCompletionpaytoOwnerinimmediatelyavailablefunds,freeofbankchargeswithoutsetoffor
deductiontheaggregateofthePurchasePricelesstheDeposittotheextentpaidunderClause3toanaccountinthename
ofOwneroritsnominee(tobenotifiedtoBuyerbyOwnerwithinareasonableperiodbeforeCompletion).
3.
Deposit
AssecurityforthecorrectfulfilmentofthisAgreementtheBuyershallpayanonrefundabledepositof*****%ofthe
PurchasePrice(theDeposit)within*****BankingDaysfromthedatewhentheExerciseNoticeisreceivedbyOwner.
TheDepositshallbeplacedwithabanknominatedbyOwnerandheldinajointaccountfortheOwnerandtheBuyer.
Interest,ifany,shallbecreditedtotheBuyer.AnyfeechargedforholdingthesaidDepositshallbeborneequallybythe
OwnerandtheBuyer.
4.
SaleandPurchase
4.1
OnCompletion:
(a)
thePurchasePrice(lesstheDeposittotheextentpaidunderClause3)shallbepaidinfullfreeofbankchargesto
OwnersnominatedaccountondeliveryoftheFSRU
(b)
inconsiderationofreceiptofthePurchasePrice,OwnershalltransfertheFSRUAssetstoBuyerandBuyershall
purchase,assumeandtaketitletotheFSRUAssetsand
(c)
BuyerandOwnershallcompletethesaleofallFSRUAssets(includingenteringintoallnecessarydocuments
andformulationrequiredunderIndonesianlaw),inaccordancewiththesePurchaseTerms.
5.
Completion
5.1
CompletionwilltakeplaceonthedatespecifiedintheExerciseNotice,whichdateshallbenolaterthantheendofthe
LeasePeriodandnoearlierthanthe*****dayafterthedatethatOwnerreceivedtheExerciseNotice(Intended
CompletionDate).
6.
TitleandRisk
6.1
Title,rightsandinterestintheFSRUAssetsshallpasstoCompanyonCompletion.
6.2
WithoutlimitingClause6.1,shouldtheFSRUbecomeanactual,constructiveorcompromisedtotallossbefore
Completion,theExerciseNoticeandthePurchaseTermsshallceasetohaveeffect.
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7.
EX10.18
DeliveryofFSRU
7.1
SubjecttoBuyercomplyingwithClauses2and3,OwnershalldelivertoBuyer,andBuyershallacceptdeliveryofand
takeover,theFSRU[attheMooring]1orsuchotherplaceasthepartiesagreeonCompletion.
8.
SparesandMiscellaneous
8.1
OwnershalldeliverfreeofchargetoBuyer,andBuyershallacceptdeliveryofandtakeover,onCompletion:
(a)
alllubricatingoil,waterandunbroachedprovisions,paints,oils,ropesandotherconsumablestoreson
theFSRU
(b)
allrelevantFSRUsparepartsonboardtheFSRU,butsparesonorderaretobeexcluded.TheOwneris
notrequiredtoreplacesparepartswhicharetakenoutofsparesandusedasreplacementpriorto
delivery,[attheMooring]orsuchotherplaceasthepartiesagree.
8.2
Ownerhastherighttotakeashorecrockery,plates,cutlery,linenandotherpropertybearingOwnersflagorname.
8.3
NotwithstandinganythinginthesePurchaseTermstothecontrary,thesaleoftheFSRUAssetsshallnotincludeany
hired,leasedorotherthirdpartyequipment(includingwithoutlimitationthepersonalbelongingsoftheCaptain,the
OfficersandtheCrew,includingwithoutlimitationtheslopchest).
8.4
ThefollowingshallnotbeFSRUAssets:
(a)
artwork,decorations,ornamentsandotheritemsofsentimentalvaluetotheOwnersand
(b)
othersimilaritemstobeagreedbetweenOwnerandBuyer.
9.
Documentation
9.1
InexchangeforpaymentofthePurchasePrice,OwnershallfurnishBuyerwiththefollowingdocumentsonCompletion:
(a)
LegalBillofSaleoftheVesselinfavourofBuyerdulynotariallyattested(bothastosignatureand
authorisation)andlegalisedintheFSRUscountryofregistration.
1 CompletionwillnotoccurattheMooringifitisnotbuiltortheFSRUhasbeenrelocated,andthePurchaseTermswillbe
amendedaccordingly.
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EX10.18
(b)
Currentcertificatesofownership(GrosseAkte)issuedbytheRegistry.
(c)
Classificationcertificate(s),aswellasallplansandrelateddocumentationthatareonboardtheFSRU.
(d)
OthercertificatesandothertechnicaldocumentationthatareonboardtheFSRUsuchasCertificateof
TonnageandMeasurement(SuratUkur),IndonesianVesselNationalityCertificate(SuratLaut),Safety
Certificate(SertifikatKeselamatan),unlessOwnerisrequiredtoretainthesame,inwhichcaseBuyer
hastherighttotakecopies.
(e)
EquipmentlistsfortheFSRUandotherFSRUAssets.
(f)
CopiesoftheFSRUslogbooks.
(g)
AnyadditionaldocumentsasmayreasonablyberequiredbyBuyerortheRelevantAuthoritiesforthe
purposeofregisteringtheFSRU,providedthatcompanyorbuyernotifiesOwnerofanysuchdocuments
assoonaspossibleafterthedateofthesePurchaseTerms.
9.2
CompletionwilltakeplaceatOwnersofficesinJakarta,orsuchotherplacethatthepartiesreasonablyagree.
9.3
IfCompanyrequiresthatOwnercontinuetooperateandmaintaintheFSRUunderClause3.4oftheagreement,each
partyshallonCompletiondelivertotheotheracounterpartoftheO&MTermsdulyexecutedbyit.
10.
Encumbrances
TheFSRUAssetsshallbedeliveredbyOwnertoBuyerfreeofallEncumbrances,thirdpartycharterandanyotherdebts
otherthanPermittedEncumbrances.
11.
ConditiononCompletion
TheFSRUAssetsshallbedeliveredandtakenoverastheyareatthetimeofCompletion.Tothemaximumpermittedby
law,allimpliedwarrantiesareexcluded.
12.
NameandMarkings
Buyershall,upondelivery,changethenameandremoveallmarkingsfromtheFSRUreferringtoOwneroritsAffiliates,
includingOwnersanditsAffiliateslogosandtrademarks.
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EX10.18
AppendixIPurchasePrice
ThePurchasePriceshallbetheamountinthetablebelowthatcorrespondstotheanniversaryoftheDeliveryDatethat
immediatelyprecedestheIntendedCompletionDateunderthePurchaseTerms.
AnniversaryoftheDeliveryDate
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
Thirteenth
Fourteenth
Fifteenth
Sixteenth
Seventeenth
Eighteenth
Nineteenth
Twentieth
TwentyFirst
TwentySecond
TwentyThird
TwentyFourth
TwentyFifth
TwentySixth
TwentySeventh
TwentyEighth
TwentyNinth
Thirtieth
PurchasePrice(inUSdollars)
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
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EX10.18
SCHEDULE13NOMINATIONPROCEDURE
1.
Nominations
1.1
Allnoticesfor,andvariationsto,aNominatedQuantityshallbeservedbyCompanyontheOwnerincompliancewith
therequirementssetoutinthisschedule.
1.2
AllnoticetobeservedontheOwnerinaccordancewiththeprovisionsofthisScheduleshallbemadeonOwners
internetbasednominationssystem(intheformprescribedtherebyfromtimetotime)or,ifsuchsystemisnotthen
workingorisotherwiseunavailable,byelectronicmail(insuchformasOwnermayrequireandprovidedthatCompany
receivesconfirmationfromOwnerthattheelectronicmailisreceived)orbysuchothermethodasthePartiesmayagreein
writing.
2.
DailyNominationNoticeandVariationtoNominatedQuantity
2.1
Subjecttosection2.5below,theCompanyshalloneachday,by17.00hours,notifytheOwnerof:
(a)
thequantityofRegasifiedLNGtobedeliveredfromFRSUundertheagreement(theNominated
Quantity)requiredtoapplyfrom00:00hoursuntil23:59:59hoursoftheDayafterthatday
(b)
NominatedQuantityforeachofnextsucceeding*****Daysand
(c)
Companysbestestimateoftherateofflowofgas,intheformofa24hourflowprofile,atwhich
Companysofftaker(s)expecttotakegasduringeachhourduringtheDayinrespectoftheNominated
Quantityspecifiedinsection2.1.(a)and(b)(theDailyEstimates),andOwnershallonlybeobligedto
usereasonableendeavourstosatisfyDailyEstimatesasareasonableandprudentoperator.
(theDailyNominationNotice).
2.2
IfaDailyNominationNoticeisnotservedbytheCompanyinaccordancewithsection2.1ofthisschedule,thenthe
CompanyshallbedeemedtohaveservedaDailyNominationNoticeinaccordancewithsection2.1ofthisschedulein
whichtheNominatedQuantitiesandDailyEstimatesforthefollowingDayandthenextsucceeding*****Daysshallbe
equaltosuchquantitiesandflowratesofGasspecifiedinrespectofeachofthoseDaysinthelastDailyNomination
NoticeservedbyCompanyundersection2.1ofthisschedule.TheNominatedQuantityandDailyEstimateforeachDay
thereaftershallbeequaltosuchquantitiesandflowratesofRegasifiedLNGspecifiedforthelastDayofthemostrecent
DailyNominationNoticeuntilsuchtimeastheCompanyservesnoticeinaccordancewithsection2.1ofthisschedule.
2.3
Subjecttosection2.5below,forthepurposeofvaryingaNominatedQuantityand/oritsDailyEstimatesnotifiedor
deemedtohavebeennotifiedinrespectofaDay,theCompanyshallnotifytheOwnerofsuchchangenotlaterthan
*****hoursbeforethe
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EX10.18
hourtowhichthevariationappliesprovidedthatOwnershallonlybeobligedtousereasonableendeavourstosatisfy
suchchangeasareasonableandprudentoperator,andnoRegasificationFlowRateWarrantyCompensationshallapply
inrespectofthatDay.
2.4
EachvariationmadetotheNominatedQuantityforaDayshall,ifnotifiedinaccordancewithsection2.3,supersedethe
NominatedQuantityforsuchDaypreviouslynotifiedordeemedtohavebeennotified.
2.5
InnocircumstanceshallanythingobligeOwnertocause,andnonoticemaybegivenhereundertotheeffect,thatthe
RegasificationFlowRatebelessthan45MMscfperdayorexceedtheGuaranteedRegasificationFlowRate,northatthe
RegasificationFlowRatebevariedmorerapidlythantheGuaranteedFlowRateModulation.
3.
AnnualNominationandRollingMonthlyNominations
3.1
Subjecttosection3.3,notlaterthan*****daysbeforethestartoftheDeliveryDate,CompanyshallnotifyOwnerofthe
NominatedQuantityitreasonablyexpectstonominateundersection2.1ofthisScheduleforeachDayinthatContract
Year.
3.2
Subjecttosection3.3,notlaterthan*****daysbeforethestartofeachcalendarmonthduringtheLeasePeriod,
CompanyshallnotifyOwnerof:
(a)
itsupdateoftheestimatedNominatedQuantityitreasonablyexpectstonominateundersection2.1of
thisScheduleforeachDayinthesucceeding12calendarmonthsand
(b)
theestimatedDailyEstimateitreasonablyexpectstonominateundersection2.1ofthisSchedulefor
eachDayinthesucceedingonecalendarmonth.
3.3
Notificationsgivenunderthissection3areintendedtoassistthepartiesinplanningtheirrespectiveoperationsonly,and
donotconstituteabindingnominationgivenundersection2ofthisScheduleandOwnershallnotberequiredtodeliver
RegasifiedLNGinresponsetoanotificationgivenunderthissection3.
4.
ThisSchedule13maybesupplementedbyanoperatingprocedureorotherwisemodifiedfromtimetotimebyagreement
inwritingoftheparties.
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EX10.18
SCHEDULE14CONSENTS
TableA:PermitsandconsentsobtainedbyCompanyfortheimplementationandoperationoftheProject.
No. Permit
TemporaryCommercialBusinessLicenseofNaturalGaswhichhasnoDistribution
NetworkFacilitiesfromDirectorateGeneralOilandGas
2 DecisionPermitofFSRULocationPointfromSeacomm
3
LocationPermitfromBupatiLampungTimur
4
RecommendationofLandLicensingStatusofLNGFloatingTerminalfromDinas
Kehutanan,PemerintahProvinsiLampung
5
RecommendationofGovernorofLampung
6
RecommendationofSpatialPlanfromBadanPerencanaanPembangunanDaerah
(Bappeda)KabupatenLampungTimur
7
PrinciplesRecommendationfortheDevelopmentofLNGFSRUfromGovernorof
Lampung
8
RecommendationforSubseaPipelaying,MooringandFSRUInstallation
EnvironmentalFeasibilityPermitoftheMinistryofEnvironment
10
LocationPermitforSpecialTerminal(TerminalKhusus/Telsus)
IjinPenetapanLokasiTerminalKhusus
11 ConstructionPermitforSpecialTerminal(TerminaiKhusus/Telsus)
IjinPembangunanTerminalKhusus
12 OperationPermitforSpecialTerminal(TerminalKhusus/Telsus)
IjinPengoperasianTerminalKhusus
13 EnvironmentalImpactAssessmentPermit
Issuedby
MIGAS
Responsibility
COMPANY
Seacomm
COMPANY
BupatiLampung COMPANY
Timur
DinasKehutanan COMPANY
PemprovLampung
Governorof
COMPANY
Lampung
Bappeda
COMPANY
Kabupaten
LampungTimur
Governorof
COMPANY
Lampung
Labuhan
COMPANY
MaringgaiPort
Authority
Ministryof
COMPANY
Environment
Seacomm
COMPANY
Seacomm
COMPANY
Seacomm
COMPANY
Ministryof
COMPANY
Environment
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EX10.18
TableB:PermitsandconsentstobeobtainedbyOwnerfortheimplementationandoperationoftheProject.
No. Permit
Issuedby
1 ShippingBusinessLicense(SIUPAL)
2
RegistrationStatement(SuratKeteranganTerdaftar),totheextentrequiredby
applicableregulations
3 MeasuringTankusePermit(IzinPenggunaanTangkiUkur)
4
SKPP/SKPI
SertifikatKelayakanPenggunaanPeralatan/SertifikatKelayakanPenggunaan
Instalasi
(CertificateofEquipmentFitnessForUse/CertificateofInstallationFitness
ForUse)
SafetyInspectionofInstallationandequipmentandtechnologiesusedinoil
andgasminingandgeothermalresourceexploitation
5
ApplicationtoImportGoods(Vessel)fromDirectorateGeneralofCustoms
andExcise
6
PPHTaxFreeCertificate(SuratKeteranganBebasPajakPPN)fromTax
Office
7 UseofIndonesianFlag(PenggunaanBenderaKapal)
8 ShipsRegistration(PendaftaranGrosseAktaKapal)
9
OffshoreSubmarineMooringWorkingPermittobeobtainedbytheMooring
installationcontractor
10 Dispensationforforeignshipboardpersonnel
MIGAS
MIGAS
Responsibility
OWNER
OWNER
OWNER
OWNER
CUSTOM&
EXCISE
CUSTOM&
EXCISE
SEACOMM
SEACOMM
SEACOMM
SEACOMM
IMMIGRATION
MANPOWER
SEACOMM
MIGAS
OWNER
OWNER
OWNER
OWNER
OWNER
OWNER
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EX10.18
SCHEDULE15TERMINATIONAMOUNTANDACQUISITIONAMOUNT
PARTA
TerminationPaymentAmounts
1.
OwnerBreachTerminationAmount
TheOwnerBreachTerminationAmountshallbe:
(a)
iftheTerminationAcquisitionNoticeisissuedand50%AcquisitionTermsagreedwithinthe50%AcquisitionPeriod,
theAcquisitionPriceor
(b) iftheCompanysTerminationNoticeorOwnersnoticeunderClause26.3isissuedbeforetheMooringPricehasbeen
paidunderClause2.12,theaggregateofallamountspaidorpayableundertheMooringContractandotherreasonable
andreasonablydocumentedcostsincurredortobeincurredbyOwnerinconnectionwithperformanceofits
obligationsinrespectoftheMooringunderthisagreementasatthedateofsuchnotice,minustheamountofany
paymentalreadymadebytheCompanypursuanttoClause2.12or
(c)
inallothercircumstances,nil.
2.
VesselFMTerminationAmount
TheVesselFMTerminationAmountshallbe:
(a)
(b) iftheCompanysTerminationNoticeisissuedbeforetheMooringPricehasbeenpaidunderClause2.12,theaggregate
ofallamountspaidorpayableundertheMooringContractandotherreasonableandreasonablydocumentedcosts
incurredortobeincurredbyOwnerinconnectionwithperformanceofitsobligationsinrespectoftheMooringunder
thisagreementasatthedateofsuchnotice,minustheamountofanypaymentalreadymadebytheCompanypursuant
toClause2.12or
(c)
inallothercircumstances,nil.
3.
3.1 TheNonVesselFMTerminationAmountshallbe:
(a)
(b) inallothercircumstances,theamountcalculatedinaccordancewiththefollowingtable,subjecttoparagraph3.2
below.
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EX10.18
Timingoftermination
(endofyear)
FirstContractYear
SecondContractYear
ThirdContractYear
FourthContractYear
FifthContractYear
SixthContractYear
SeventhContractYear
EighthContractYear
NinthContractYear
TenthContractYear
EleventhContractYear
TwelfthContractYear
ThirteenthContractYear
FourteenthContractYear
FifteenthContractYear
SixteenthContractYear
SeventeenthContractYear
EighteenthContractYear
NineteenthContractYear
TwentiethContractYear
TwentyFirstContractYear
TwentySecondContractYear
TwentyThirdContractYear
TwentyFourthContractYear
TwentyFifthContractYear7
TwentySixthContractYear
TwentySeventhContractYear
TwentyEighthContractYear
TwentyNinthContractYear
ThirtiethContractYear
(inUSdollars)
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
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EX10.18
3.2IncalculatingtheNonVesselFMTerminationAmountpayablebyCompanytoOwnerinaccordancewiththetableabove,if
thedateonwhichterminationiseffectivedoesnotcoincidewiththelastdayoftheContractYearinwhichitoccurs,then:
(a)
theNonVesselFMTerminationAmountshallbetheamountinthetableforthefirstContractYearinrespectof
terminationoccurringatanytimeintheperiodstartingwiththeContractDateandendingwiththeendofthefirst
ContractYear
(b) theNonVesselFMTerminationAmountshallbetheamountinthetableforthetwentyfirstContractYearinrespectof
terminationoccurringatanytimeinthatContractYearand
(c)
saveasprovidedforinparagraphs3.2(a)and3.2(b),theNonVesselFMTerminationAmountshallbealinearproration
betweentheamountinthetableforthatyearandtheyearbefore.
4.
CompanyBreachTerminationAmount
TheCompanyBreachTerminationAmountshallbe:
(a)
(b) inallothercircumstances,thesameamountasdeterminedfortheNonVesselFMTerminationAmountinparagraph
3.1(b)above.
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EX10.18
PARTB
50%TerminationAcquisitionTerms
1.
IfinaccordancewithClause26.4(d)eitherpartybynoticetotheother(TerminationAcquisitionNotice)requiresthat
negotiationof50%AcquisitionTermsistobegin,theOwnershallwithin*****BankingDaysmakeanoffersettingout
thekeytermsonwhichitwouldbewillingtoselltotheCompanya50%ownershipinterestintheFSRUfreeof
Encumbrances(suchterms,the50%AcquisitionTerms)inaccordancewiththefollowing:
(a)
thepriceforthatacquisitionwouldbetheAcquisitionPrice(lessanyamountalreadypaidinrespectoftheOwner
BreachTerminationAmount,theVesselFMTerminationAmounttheNonVesselFMTerminationAmountorthe
CompanyBreachTerminationAmount,asapplicable)and
(b) theCompanyaftertheacquisitionwouldhaveeconomicobligationsconsistentwithownershipof50%oftheFSRU
freeofEncumbrancesbutonlytherightsofafinancialinvestor(tobeagreed)includingsomerightstoprotection(tobe
agreed)withrespecttomanagementoftheFSRU,butotherwisewithnorightstooperationalormanagementcontrol.
2.
Thereafterthepartiesshallnegotiateingoodfaithfor*****BankingDayswithaviewtoconcludingasalebytheOwner
totheCompanyofa50%ownershipinterestintheFRSUfreeofEncumbrances.
3.
AcquisitionAmount
3.1 TheAcquisitionPriceshallbecalculatedinaccordancewiththefollowingtable,subjecttoparagraph3.2below:
Timingoftermination
(endofyear)
FirstContractYear
SecondContractYear
ThirdContractYear
FourthContractYear
FifthContractYear
SixthContractYear
AcquisitionPrice
(inUSdollars)
*****
*****
*****
*****
*****
*****
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EX10.18
SeventhContractYear
EighthContractYear
NinthContractYear
TenthContractYear
EleventhContractYear
TwelfthContractYear
ThirteenthContractYear
FourteenthContractYear
FifteenthContractYear
SixteenthContractYear
SeventeenthContractYear
EighteenthContractYear
NineteenthContractYear
TwentiethContractYear
TwentyFirstContractYear
TwentySecondContractYear
TwentyThirdContractYear
TwentyFourthContractYear
TwentyFifthContractYear
TwentySixthContractYear
TwentySeventhContractYear
TwentyEighthContractYear
TwentyNinthContractYear
ThirtiethContractYear
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
*****
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EX10.18
3.2 IncalculatingtheAcquisitionPricepayablebyCompanytoOwner,ifthedateonwhichterminationiseffectivedoesnot
coincidewiththelastdayoftheContractYearinwhichitoccurs,then:
(a)
theAcquisitionPriceshallbetheamountinthetableforthefirstContractYearinrespectofterminationoccurringat
anytimeintheperiodstartingwiththeContractDateandendingwiththeendofthefirstContractYearor
(b) saveasprovidedforinparagraph3.2(a),theAcquisitionPriceshallbealinearprorationbetweentheamountinthe
tableforthatyearandtheyearbefore.
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EX10.18
SCHEDULE16CONDITIONSOFUSE
[CONDITIONSOFUSEFORTERMINAL
I,theMaster
ofLNG,
ownedby,
whoseaddressisat,
HerebyacknowledgereceiptoftheseConditionsofUseofPortimplementingtheinstructionsandrecommendations
of[PortInformationandRegulationsManual]andagreetobeboundbytheirterms.
1.
IntheseConditionsofUse,thefollowingexpressionsshallhavethemeaningassignedtoeachofthem:
Companymeans[insertnameofOwnerandCompanyunderthisagreement].
PortFacilitiesmeanallfacilities,assets,equipmentandinstallationsofwhatevernatureexistingatthePortasofthedate
hereof,whetherthesamearefixedormovable,including,withoutlimitation,thefloatingstorageandRegasificationunit
andmooringsystem,thechannelincludingbuoys,berths,loadingfacilities,andanysuchorlikefacility,asset,equipmentor
installation.
PortManagementmeans..
PortServicesmeananyservice,advice,instructionorassistancetenderedorprovidedbythePortManagementtoShip,
including,withoutlimitation,bywayofpilotage,towage,tugassistance,mooringorothernavigationalservices,whether
thesameareprovidedforaconsiderationorfreeofcharge.
OthertermsusedintheseConditionsofUsebutdefinedinthePortRegulationsshallhavethesamemeaningassignedto
theminthePortRegulationsunlessthecontextotherwisedictates.
2.
TheseConditionsofUseshallapplyinadditiontothePortRegulationsandanyotherlaws,rules,conventions,regulations
orproceduresenacted,promulgated,declared,signedorissuedbythe(state?)orbythePortManagement.
3.
TheMastershallatalltimesandunderallcircumstancesberesponsibleforthesafeandproperoperationandnavigationof
theShip.WhilsttheCompanyshallexerciseeveryreasonablecare,skillanddiligencetoensuretheproperexerciseand
operationofthePortServicesandthePortFacilities,theCompany,nonetheless,makesnorepresentation,guaranteeor
warrantyastotheadequacy,suitability,fitnessforpurposeorsafeconductthereof.
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EX10.18
4.
TheMasterandtheOwnershallberesponsiblefor,indemnifyandholdharmlesstheCompanyfromandagainstallclaims,
losses,damages,delays,costs(includinglegalcosts),expensesandliabilitiesofeverykindandnatureresultingfromany
personalinjuryincludingfatalinjury,illnessordisease,howeverexcludinganydamagescausedsolelybyCompanys
negligence.
5.
lossand/ordamagetoanypropertyincluding,withoutlimitation,thePortFacilities,howeverexcludinganydamages
causedsolelybyCompanysnegligence.
6.
lossand/ordamagetoanythirdparty,howeverexcludingdamagescausedsolelybyCompanysnegligence.
7.
IftheShiporanypersononboardoranyobject,thing,article,substance,equipmentorinstallationoftheShiporonits
boardsinks,groundsorotherwisebecomesorislikelytobecome,inthesoleopinionofanyPortauthorities,anobstruction,
threat,hazardordangertonavigation,operations,safety,health,securityorenvironmentinoradjacenttothePort,thenthe
Masterand/ortheOwnershalluponreceivingthePortauthoritiesrequest,proceedimmediatelyandwithoutdelaytoclear,
removeordealwiththeobstruction,threat,hazardordangerwithintheperiodspecifiedinthewrittennoticeservedbythe
Portauthority.
8.
FailingsuchimmediateactionbytheMasterand/orOwner,orifthesaidobstruction,threat,hazardordanger,inthesole
opinionofthePortauthority,isdelaying,hindering,interferingwithorinanywayaffectingthenavigation,operation,
safety,health,securityortheenvironmentinoradjacenttothePort,thenthePortManagement(authority)shallbeentitled
totakeallmeasuresasthePortauthority(Management)deemsappropriatetoclear,removeordealwiththesaidobstruction,
threat,hazardordanger,andtheMasterandOwnershallberesponsiblefor,indemnifyandholdharmlessthePort
Managementfromandagainstanyclaim,loss,damage,delay,cost,expenseorliabilityassociatedtherewith.
9.
TheseConditionsofUseshallbeconstrued,interpretedandappliedinaccordancewiththeStatelawsofIndonesia,andthe
partiesnamedhereinsubmitexclusivelytothejurisdictionofthecourtsofIndonesia.
10. Fortheavoidanceofdoubt,anyliabilityincurredbytheMasterand/orOwnerbyoperationoftheseConditionsofUseshall
bejointandseveral.
11. NotwithstandinganythingintheseConditionsofUsetothecontrary,theliabilityoftheOwnerand/ortheMastershallnot
exceedUSD*****(UnitedStatesDollars*****)intheaggregateanyoneevent.
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EX10.18
12. Thelimitofliabilitysetoutincondition11shallnotlimit,restrictorprejudiceanyclaimorrightthattheCompanyhasor
mayhaveagainsttheMasterand/orOwnerundergeneralprinciplesoflaworequity.Fortheavoidanceofdoubt,saidlimit
ofliabilityshallonlyapplywithrespectto,andtotheextentof,claimbytheCompanyagainsttheMasterand/orOwner
undertheseConditionsofUse.
Signedandacknowledged:
By:
Date:
Time: ]
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EX10.18
SCHEDULE17COMPANYSITEDATA
TheSiteconditions,includingbutnotlimitedtosoildata,arebasedonthefollowingreportsissuedbytheCompanyasthe
DesignBasisoftheMooringandotherrelevantpartsoftheProject:
DOCUMENTID
LNGCCAL1800GTRO001
LNGCCAL1800GPRO001
LNGCPGN1800SYSI001
LNGCPGN1800SYSI002
LNGCPGN1800SYSI004
LNGCPGN1800SYSI005
DOCUMENTREFERENCE
GeotechnicalSurveyFinalReport
GeophysicalSurveyFinalReport
MetoceanReport
SeismicReport
SeismicReportExecutiveSummary
MetoceanReportExecutiveSummary
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EX10.18
SCHEDULE18O&MTERMS
TheO&MTermsshallbetheprovisionsoftheBIMCOSHIPMAN2009contractannexedtothisSchedule(theSHIPMAN
Terms),amendedasfollows:
1.
[Clause12ofPartIIoftheSHIPMANTermsshallbedeletedandreplacedwiththefollowingprovisions:
12. OperatingExpenses
(a) TheOwnershallpaytheManagerstheaggregateoftheOperatingExpenses,theMarginandTaxAmountforeach
ContractYearfortheirservicesasManagersunderthisAgreement,inaccordancewithclause12(b)andclause13(c).
(b) TheOwnershallpaytheManagerstheAnnualBudgetedAmountinequalmonthlyinstalments(aMonthly
Instalment)inadvance,thefirstMonthlyInstalment(prorata)ifappropriatebeingpayableoncommencementof
thisAgreementandsubsequentMonthlyInstalmentsbeingpayableatthebeginningofeverycalendarmonthforthe
durationoftheAgreement.AllamountspayabletotheManagersunderthisAgreementshallbepaidtoitsnominated
accountstatedinBox15.
(c)
TheactualOperatingExpensesshallbesubjecttoanannualauditunderclause13(c)andtheproposedAnnual
BudgetedAmountforeachContractYearshallbepresentedinaccordancewithclause13(a).
(d) IftheOwnersdecidetolayuptheVesselandsuchlayuplastsformorethan6months,anappropriatereductionofthe
OperatingExpensesfortheperiodexceedingsuchperioduntilonemonthbeforetheVesselisagainputintoservice
shallbemutuallyagreedbetweentheparties.IftheManagersareprovidingcrewmanagementservicesinaccordance
withclause5(a),consequentialcostsofreductionandreinstatementoftheCrewshallbefortheOwnersaccount.
(e)
TheOperatingExpensesshallbedeterminedwithoutregardforanydiscounts,rebates,commissionsorsimilarcredits
obtaineddirectlyorindirectlybytheManagersoranyoftheirAffiliatesinthecourseoftheperformanceofthe
ManagementServices.
2.
Clause13ofPartIIoftheSHIPMANTermsshallbedeletedandreplacedwiththefollowingprovisions:
13. BudgetsandManagementofFunds
(a) TheManagersshallprovidetheOwnerwithitsestimateoftheaggregateoftheOperatingExpenses,MarginandTax
Amount(theAnnualBudgetedAmount)inrespectofthefirstContractYearuponsigningofthisAgreement,and
subsequentbudgetsforeachContractYearthereaftershallbepreparedbytheManagersandpresentedtotheOwners
notlessthanthreemonthsbeforetheendoftheprecedingContractYear.
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EX10.18
(b) If,duringaContractYear,theManagersexpecttheoperatingcostsoftheVesseltoexceedaMonthlyInstalmentthen
paidtotheManagersbymorethan8%,theManagersshallrequesttheOwnersinwritingtopaythefundsrequiredto
runtheVesselfortheensuingmonth,includingthepaymentofanyoccasionalorextraordinaryitemofexpenditure,
suchasemergencyrepaircosts,additionalinsurancepremiums,bunkersorprovisions.Suchfundsshallbereceivedby
theManagerswithintendaysafterthereceiptbytheownersoftheManagerswrittenrequest.
(c)
TheManagersshallatalltimesmaintainandkeeptrueandcorrectaccountsinrespectoftheManagementServicesin
accordancewiththerelevantInternationalFinancialReportingStandardsorsuchotherstandardasthepartiesmay
agree,includingrecordsofallcostsandexpenditureincurred,andproduceacomparisonbetweenbudgetedand
actualincomeandexpenditureoftheVesselinsuchformandatsuchintervalsasshallbemutuallyagreed.
(d) TheManagersshallmakesuchaccountsavailableforinspectionbyitsrepresentativesandauditingunderclause
13(e)intheManagersoffices,orbyelectronicmeans,providedreasonablenoticeisgivenbytheOwners.
(e)
Anaudit(Audit)shallbeperformed(attheOwnerssolecost)byanindependentandinternationallyrecognised
firmofaccountantsappointedjointlybytheOwnerandManagerswithin[insert]daysaftertheendofeachtaxyear
duringwhichamountswerepayableunderthisAgreement,todeterminewhetheramountspaidunderthisAgreement
duringtheprecedingContractYear(theAmountsPaid)differfromtheaggregateoftheactualOperatingExpenses,
theMarginandTaxAmountforthatContractYear.
(f)
IftheAuditdeterminesthat:
(i)
theAmountsPaidexceedtheManagementFee,theManagersshallreimbursesuchexcesstotheOwners
nominatedaccountwithin30daysaftertheAuditor
(ii)
theManagementFeeexceedstheAmountsPaid,theOwnersshallpaysuchexcesstotheManagerswithin30
daysoftheAudit.ThisclausesurvivesterminationorexpiryofthisAgreement.
(g) TheOwnershall,uponsigningofthisAgreement,procurethatastandbyletterofcredit(SBLC)bedeliveredin
favouroftheManagersbythesamefinancialinstitutionandonthesameterms,mutatismutandis,asthoserequired
underclause27.4oftheLOMAgreement,savethattheaggregateprincipalamountoftheSBLCshallbeanamount
notlessthandoubletheamountofMonthlyInstalments.
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EX10.18
(h) TheOwnershallensurethattheManagershaveavailabletothemfordrawingunderClause13(i)anenforceable
SBLCforanamountofnotlessthandoubletheamountofMonthlyInstalmentsfromthestartofthisagreementuntil
the30thdayafterthisagreementterminatesorexpires(SBLCEndDate)andclause27.5oftheLOMAgreement
shallapply,mutatismutandis,inrespectoftheSBLC.
(i)
TheManagersmaydrawundertheSBLC,oranycashcollateralheldbytheManagerspursuanttoClause13(h),
amountsinaggregatenotexceedingtheaggregateofamountsduebutunpaidtoOwnerunderthisAgreement.The
Managersshall,withinsevendaysaftertheSBLCEndDate,releasetheissueroftheSBLCfromallobligationsunder
it.
3.
ThefollowingdefinedexpressionsshallformpartoftheSHIPMANTerms:
TheOperatingExpensesshall,inrespectofaContractYear,compriseallcostsoftheManagersarisingoutof,orin
connectionwith,itsperformanceofthisagreementduringthatContractYear,including(withoutlimitation):
(a) allcostsincurredinrelationto:manningandcrewingmaintenanceandrepairsconsumables,services,new
installationsandstoresinsurancesscheduledandunscheduleddrydocking,allclass,flagstateandregulatory
authorityrequirements,security,inspectionsandapprovalsandallothercostsofoperating,maintainingand
managingtheFSRUand
(b) afeeinrespectoftheManagersadministration,including(butnotlimitedto):salariesofofficestaffgeneralback
officeandsupportfunctionstheLNGfleetmanagerinformationtechnologyservicesmaintenanceandpurchase
systemsqualityassuranceaccountingthemaritimepersonneldepartmentsecurityofficerentaltravelling
expensescommunicationcostotherdirectexpenseswithrespecttothemanagementandoperationoftheFSRUand
othersimilarexpenses.
TheMargin,inrespectofaContractYear,shallbeequalto7%oftheOperatingExpensesforthatYear.
TheTaxAmount,inrespectofaContractYear,shallbetheaggregateof:(i)theTaxLiabilitypayableinrespectofsums
itpayableunderthisagreementand(ii)anamountsuchthatafterpaymentofTaxLiabilityonthesumsitreceivesunder
theagreement,itshallretainnetofIndonesianTaxesanamountequaltotheaggregateoftheOperatingExpensesand
Margin.
TheTaxLiability,inrespectofaContractYear,shallbeanamountequaltotheaggregateofallliabilitytoIndonesian
TaxesthattheManagersincurinrespectofthatContractYear,inconnectionwithperformingthisagreementand/or
dividendsandloaninteresttheypay.
IndonesianTaxesmeansallTaximposedbyanyIndonesianGovernmentalAuthority.
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EX10.18
Taxmeansallformsoftaxationandstatutory,governmental,state,provincial,localgovernmentalormunicipal
impositions,duties,contributionsandlevies,ineachcase,inthenatureoftaxationincluding(withoutlimitation),
corporationtax,supplementarycharge,petroleumrevenuetax,incometaxes,prepaidincometaxes,saletaxes,usetaxes,
stampduty,transfertaxes,grossincometaxes,valueaddedtaxes,socialcontributiontaxes,employmenttaxes,government
royalties,customsduties,exportorimportduties,exciseduties,landandbuildingtaxes,environmentaltaxes,andlevies
andwithholdingtaxestogetherwithallpenaltiesandinterestrelatingtheretoandanypenaltiesandsurchargesinrespect
oftheassociatedreportingrequirementsrelatingtothemovementofgoodsandprovisionofservices,whereveror
wheneverimposed.
Affiliatemeans,inrelationtoanyPerson(thefirstmentionedPerson),anyotherPersonthatdirectlyorindirectly,via
anynumberofintermediaries,isControlledby,undercommonControlwith,orControlsthefirstmentionedPerson.
ControlmeansinrespectofanyPerson,theability(directlyorindirectly)todirectthatPersonsaffairsand/orcontrol
thecompositionofitsboardofdirectorsorequivalentbody,includingbymeansof(a)theownershiporcontrol(directlyor
indirectly)ofmorethan50%ofthevotingsharecapitalofthatPersonor(b)theabilitytodirectthecastingofmorethan
50%ofthevotesexercisableatgeneralmeetingsofthatPersononall,orsubstantiallyall,mattersor(c)therightto
appointorremovedirectorsoftherelevantPersonholdingamajorityofthevotingrightsatmeetingsoftheboard(or
equivalentbody)ofthatPersononall,orsubstantiallyall,mattersandControlsandControlledshallbeconstrued
accordingly.
Personmeansanyindividual,firm,corporation,stockcompany,limitedliabilitycompany,trust,governmentor
governmentalauthority.
ContractYearmeanstheperiodstartingwiththestartofthisagreementandendingwiththeendoftheManagerstax
year,andeachcompletesuccessivetaxyearthereafterfallingfullyintheperiodbeforethisagreementends,andtheperiod
(ifany)betweenthepenultimateContractYearandtheendofthisagreement.
LOMAgreementmeanstheagreementbetweenPTPerusahaanGasNegara(Persero)TbkandHeghLNGLimitedfor
thelease,operationandmaintenanceoftheVessel,towhichthisdocumentisannexedandformspartasSchedule18.
4.
Inline132ofclause6ofPartIIoftheSHIPMANTerms,thewordsManagementFeeshallbedeletedandreplacedwith:
OperatingExpenses.
5.
Inlines333and334ofclause10ofthePartIIoftheSHIPMANTerms,thewordsatotalof10timesthemanagementfee
payablehereundershallbedeletedandreplacedwiththefollowing:
theMarginpayableinrespectoftheContractYearinwhichtheincidentorincidentsfirstarose.
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6.
EX10.18
Inline449ofclause22(g)ofthePartIIoftheSHIPMANTerms,thewordsmanagementfeeshallbedeletedandreplaced
with:MonthlyInstalment.]
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EX10.18
AnnexuretoSchedule18
BIMCOShipmanTerms
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EX10.18
PrintedbyBIMCOsidea
SHIPMAN2009
STANDARDSHIPMANAGEMENTAGREEMENT
BIMCO
PARTI
25)
1.PlaceanddateofAgreement
2.DateofcommencementofAgreement(Cls.2,12,21and
2.Owners(name,placeofregisteredofficeandlawofregistry)
Cl.1)
4.Managers(name,placeofregisteredofficeandlawof
registry)(Cl.1)
(i)Name:
(i)Name:
(ii)Placeofregisteredoffice:
(ii)Placeofregisteredoffice:
(iii)Lawofregistry:
5.TheCompany(withreferencetotheISM/SPSCodes)(state
nameandIMOUniqueCompanyIdentificationnumber.Ifthe
Companyisathirdpartythenalsostateregisteredofficeand
principalplaceofbusiness)(Cls.1and9(c)(i))
(iii)Lawofregistry:
6.TechnicalManagement(stateyesornoasagreed)
(Cl.4)
YES
YES
NO
7.CrewManagement(stateyesornoasagreed)
(Cl.5(a))
(i)Name:
(ii)IMOUniqueCompanyIdentificationnumber:
8.CommercialManagement(stateyesornoasagreed)
(Cl.6)
(iii)Placeofregisteredoffice:
(iv)Principalplaceofbusiness:
9.CharteringServicesperiod(onlytobefilledinifyesstated
inBox(i)(Cl.6(a))
10.CrewInsruancearrangements(stateyesornoas
agreed)
(i)CrewInsurance(Cl.5(b)):Tobeagreed
(ii)insuranceforpersonsproceedingtoseaonboard
(Cl.5(b)(i):Tobeagreed
11.Insurancearrangements(stateyesornoasagreed)
(Cl.7)
*onlytoapplyifCrewManagement(Cl.5(a))agreed(see
Box7)
12.Optionalinsurances(stateoptionalinsurance(s)as
agreed,suchaspiracy,kidnapandransom,lossofhireand
FD&D)(Cl.10(a)(vi))
Tobeagreed
Tobeagreed
13.Interest(staterateofinteresttoapplyafterduedateto
outstandingsums)(Cl.9(a))
14.Annualmanagementfee(stateannualamount)
(Cl.12(a))
LIBOR+1%.
15.Managersnominatedaccount(Cl.12(a))
Clauses12and13ofPartIIofthisformareamendedin
accordancewithSchedule18oftheLOMAgreement
16.Dailyrate(stateratefordaysinexcessofthoseagreed
inbudget)(Cl.12(c))
TBN
17.Layupperiod/numberofmonths(Cl.12(d))
18.Minimumcontractperiod(statenumberofmonths)
Cl.22(b)(i))
19.Managementfeeontermination(statenumberof
monthstoapply)(Cl.22(g))
Twelve(12)months
3(three)
Continued
ThisdocumentisacomputergeneratedSHIPMAN2009formprintedbyauthorityofBIMCO.Anyinsertionordeletiontothe
formmustbeclearlyvisible.Intheeventofanymodificationmadetothepreprintedtextofthisdocumentwhichisnotclearly
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EX10.18
visible,thetextoftheoriginalBIMCOapproveddocumentshallapply.BIMCOassumesnoresponsibilityofanyloss,damageor
expenseasaresultofdiscrepanciesbetweentheoriginalBIMCOapproveddocumentandthiscomputergenerateddocument.
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EX10.18
PrintedbyBIMCOsidea
20.SeverenceCosts(statemaximumamount)(Cl.22(h)(i))
21.DisputeResolution(statealternativeCl.23(a),23(b)or
23(c)ifCl.23(c)placeofarbitrationmustbestated)
(Cl.23)
USDone(1)million
22.Notices(statefullstylecontactdetailsforservingnotice
andcommunicationtotheOwners)(Cl.24)
23.Notices(statefullstylecontactdetailsforserving
noticeandcommunicationtotheManagers)(Cl.24)
TBN
Clause23(a)
TBN
Continued
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PrintedbyBIMCOsidea
EX10.18
SHIPMAN2009
Standardshipmanagementagreement
PART1
(Continued)
ItismutuallyagreedbetweenthepartystatedinBox3andthepartystatedinBox4thatthisAgreementconsistingofPARTI
andPARTIIaswellasAnnexesA(DetailsofVesselorVessels).B(DetailsofCrew),C(Budget),D(AssociatedVessels)
andE(FeeSchedule)attachedheretoshallbeperformedsubjecttotheconditionscontainedherein.Intheeventofaconflictof
conditions,theprovisionsofPARTIandAnnexesA,B,C,DandEshallprevailoverthoseofPARTIItotheextentof
suchconflictbutnofurther.
Signature(s)(Owners)
Signature(s)(Managers)
Continued
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EX10.18
PrintedbyBIMCOsidea
ANNEXA(DETAILSOFVESSELORVESSELS)
TOTHEBIMCOSTANDARDSHIPMANAGEMENTAGREEMENT
CODENAME:SHIPMAN2009
DateofAgreement:
NameofVessel(s):
ParticipantsofVessel(s):
Continued
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EX10.18
PrintedbyBIMCOsidea
ANNEXB(DETAILSOFCREW)
DateofAgreement:
DetailsofCrew:
NumbersRankNationality
Continued
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EX10.18
PrintedbyBIMCOsidea
ANNEXC(BUDGET)
DateofAgreement:
ManagersinitialbudgetwitheffectfromthecommencementdateofthisAgreement(seeBox2):Tobepresentedatthetimeof
finalagreement
Continued
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EX10.18
PrintedbyBIMCOsidea
ANNEXD(ASSOCIATEDVESSELS)
NOTE:PARTIESSHOULDBEAWARETHATBYCOMPLETINGTHISANNEXDTHEYWILLBESUBJECTTOTHE
PROVISIONSOFSUBCLAUSE22(b)(i)OFTHISAGREEMENT.
DateofAgreement:
DetailsofAssociatedVessels:
Continued
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EX10.18
PrintedbyBIMCOsidea
ANNEXE(FEESCHEDULE)
Continued
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EX10.18
PARTII
SHIPMAN2009
SECTION1BasisoftheAgreement
1.
Definitions
InthisAgreementsavewherethecontextotherwiserequires,thefollowingwordsandexpressionsshallhavethemeanings
herebyassignedtothem:
Company(withreferencetotheISMCodeandtheISPSCode)meanstheorganizationidentifiedinBox5orany
replacementorganizationappointedbytheOwnersfromtimetolime(seeSubclauses9(b)(i)or9(c)(ii),whicheveris
applicable).
Crewmeansthepersonnelofthenumbers,rankandnationalityspecifiedinAnnexBhereto.
CrewInsurancesmeansinsuranceofliabilitiesinrespectofcrewriskswhichshallincludebutnotbelimitedtodeath,
permanentdisability,sickness,injury,repatriation,shipwreckunemploymentindemnityandlossofpersonaleffects(see
Subclause5(b)(CrewInsurances)andClause7(InsuranceArrangements)andClause10(InsurancePolicies)andBoxes10
and11).
CrewSupportCostsmeansallexpensesofageneralnaturewhicharenotparticularlyreferabletoanyindividualvesselfor
thetimebeingmanagedbytheManagersandwhichareincurredbytheManagersforthepurposeofprovidinganefficient
andeconomicmanagementserviceand,withoutprejudicetothegeneralityoftheforegoing,shallincludethecostofcrew
standbypay,trainingschemesforofficersandratings,cadettrainingschemes,sickpay,studypay,recruitmentand
interviews.
FlagStatemeanstheStatewhoseflagtheVesselisflying.
ISMCodemeanstheInternationalManagementCodefortheSafeOperationofShipsandforPollutionPreventionand
anyamendmenttheretoorsubstitutiontherefor.
ISPSCodemeanstheInternationalCodefortheSecurityofShipsandPortFacilitiesandtherelevantamendmentsto
ChapterXIofSOLASandanyamendmenttheretoorsubstitutiontherefor.
ManagersmeansthepartyidentifiedinBox4.
ManagementServicesmeanstheservicesspecifiedinSECTION2Services(Clauses4through7)asindicated
affirmativelyinBoxes6through8,10and11,andallotherfunctionsperformedbytheManagersunderthetermsofthis
Agreement.
OwnersmeansthepartyidentifiedinBox3.
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SeveranceCostsmeansthecostswhicharelegallyrequiredtobepaidtotheCrewasaresultoftheearlyterminationof
anycontractsforserviceontheVessel.
SMSmeanstheSafetyManagementSystem(asdefinedbytheISMCode).
STCW95meanstheInternationalConventiononStandardsofTraining,CertificationandWatchkeepingforSeafarers,
1978,asamendedin1995andanyamendmenttheretoorsubstitutiontherefor.
VesselmeansthevesselorvesselsdetailsofwhicharesetoutinAnnexAattachedhereto.
2.
CommencementandAppointment
WitheffectfromthedatestatedinBox2forthecommencementoftheManagementServicesandcontinuingunlessand
untilterminatedasprovidedherein,theOwnersherebyagreetoactastheManagersoftheVesselinrespectofthe
ManagementServices.
3.
AuthorityoftheManagers
Subjecttothetermsandconditionshereinprovided,duringtheperiodofthisAgreementtheManagersshallcarryoutthe
ManagementServicesinrespectoftheVesselasagentsforandonbehalfoftheOwners.TheManagersshallhaveauthority
totakesuchactionsastheymayfromtimetotimeintheirabsolutediscretionconsidertobenecessarytoenablethemto
performtheManagementServicesinaccordancewithsoundshipmanagementpractice,includingbutnotlimitedto
compliancewithallrelevantrulesandregulations.
4.
TechnicalManagement
(onlyapplicableifagreedaccordingtoBox6).
TheManagersshallprovidetechnicalmanagementwhichincludes,butisnotlimitedto,thefollowingservices:
(a)ensuringthattheVesselcomplieswiththerequirementsofthelawoftheFlagState
(b)ensuringcompliancewiththeISMCode
(c)ensuringcompliancewiththeISPSCode
(d)providingcompetentpersonneltosupervisethemaintenanceandgeneralefficiencyoftheVessel
(e)arrangingandsupervisingdrydockings,repairs,alterationsandthemaintenanceoftheVesseltothestandardsagreed
withtheOwnersprovidedthattheManagersshall
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beentitledtoincurthenecessaryexpendituretoensurethattheVesselwillcomplywithallrequirementsand
recommendationsoftheclassificationsociety,andwiththelawoftheFlagStateandoftheplaceswheretheVesselis
requiredtotrade
(f)arrangingthesupplyofnecessarystores,sparesandlubricatingoil
(g)appointingsurveyorsandtechnicalconsultantsastheManagersmayconsiderfromtimetotimetobenecessary
(h)inaccordancewiththeOwnersinstructions,supervisingthesaleandphysicaldeliveryoftheVesselunderthesale
agreement.HoweverservicesunderthisSubclause4(h)shallnotincludenegotiationofthesaleagreementortransferof
ownershipoftheVessel
(i)arrangingforthesupplyofprovisionsunlessprovidedbytheOwnersand
(j)arrangingforthesamplingandtestingofbunkers.
5.
CrewManagementandCrewInsurances
(a)CrewManagement
(onlyapplicableifagreedaccordingtoBox7)
TheManagersshallprovidesuitablyqualifiedCrewwhoshallcomplywiththerequirementsofSTCW95andtheManagers
standardsandtrainingmatrixes.
Theprovisionofsuchcrewmanagementservicesincludes,butisnotlimitedto,thefollowingservices:
(i)selecting,engagingandprovidingfortheadministrationoftheCrew,including,asapplicable,payrollarrangements,
pensionarrangements,tax,socialsecuritycontributionsandothermandatoryduesrelatedtotheiremploymentpayable
ineachCrewmemberscountryofdomicile
(ii)ensuringthattheapplicablerequirementsofthelawoftheFlagStateinrespectofrank,qualificationcertification
oftheCrewandemploymentregulations,suchasCrewstaxandsocialinsurance,aresatisfied
(iii)ensuringthatallCrewhavepassedamedicalexaminationwithaqualifieddoctorcertifyingthattheyarefitforthe
dutiesforwhichtheyareengagedandareinpossessionofvalidmedicalcertificatesissuedinaccordancewith
appropriateFlagStaterequirementsorsuchhigherstandardofmedicalexaminationasmaybeagreedwiththeOwners.
IntheabsenceofapplicableFlagStaterequirementsthemedicalcertificateshallbevalidatthetimewhenthe
respectiveCrewmemberarrivesonboardtheVesselandshallbemaintainedforthedurationoftheserviceonboardthe
Vessel
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(iv)ensuringthattheCrewshallhaveacommonworkinglanguageandacommandoftheEnglishlanguageofa
sufficientstandardtoenablethemtoperformtheirdutiessafely
(v)arrangingtransportationoftheCrew,includingrepatriation
(vi)trainingoftheCrew
(vii)conductingunionnegotiationsand
(viii)iftheManagersaretheCompany,ensuringthattheCrew,onjoiningtheVessel,aregivenproperfamiliarisation
withtheirdutiesinrelationtotheVesselsSMSandthatinstructionswhichareessentialtotheSMSareidentified,
documentedandgiventotheCrewpriortosailing.
(ix)iftheManagersarenottheCompany:
(1)ensuringthattheCrew,beforejoiningtheVessel,aregivenproperfamiliarisationwiththeirdutiesinrelationtothe
ISMCodeand
(2)instructingtheCrewtoobeyallreasonableordersoftheCompanyinconnectionwiththeoperationoftheSMS.
(x)WhereManagersarenotprovidingtechnicalmanagementservicesinaccordancewithClause4(Technical
Management):
(1)ensuringthatnopersonconnectedtotheprovisionandtheperformanceofthecrewmanagementservicesshall
proceedtoseaonboardtheVesselwithoutthepriorconsentoftheOwners(suchconsentnottobeunreasonably
withheld)and
(2)ensuringthatintheeventthattheOwnersdrugandalcoholpolicyrequiresmeasurestobetakenpriortotheCrew
joiningtheVessel,implementingsuchmeasures
(b)CrewInsurances
(onlyapplicableifSubclause5(a)appliesandifagreedaccordingtoBox10)
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TheManagersshallthroughouttheperiodofthisAgreementprovidethefollowingservices:
(i)arrangingCrewInsurancesinaccordancewiththebestpracticeofprudentmanagersofvesselsofasimilartypeto
theVessel,withsoundandreputableinsurancecompanies,underwritersorassociations.Insurancesforanyother
personsproceedingtoseaonboardtheVesselmaybeseparatelyagreedbytheOwnersandtheManagers(seeBox10)
(ii)ensuringthattheOwnersareawareoftheterms,conditions,exceptionsandlimitsofliabilityoftheinsurancesin
Subclause5(b)(i)
(iii)ensuringthatallpremiumsorcallsinrespectoftheinsurancesinSubclause5(b)(i)arepaidbytheirduedate
(iv)ifobtainableatnoadditionalcost,ensuringthatinsurancesinSubclause5(b)(i)nametheOwnersasajoint
assuredwithfullcoverand,unlessotherwiseagreed,ontermssuchthatOwnersshallbeundernoliabilityinrespectof
premiumsorcallsarisinginconnectionwithsuchinsurances.
(v)providingwrittenevidence,tothereasonablesatisfactionoftheOwners,oftheManagerscompliancewiththeir
obligationsunderSubclauses5(b)(ii),and5(b)(iii)withinareasonabletimeofthecommencementofthisAgreement,
andofeachrenewaldateand,ifspecificallyrequested,ofeachpaymentdateoftheinsurancesinSubclause5(b)(i).
6.
CommercialManagement
TheManagersshallprovidethefollowingservicesfortheVesselinaccordancewiththeOwnersinstructions,whichshall
includebutnotbelimitedto:
(a)seekingandnegotiatingemploymentfortheVesselandtheconclusion(includingtheexecutionthereof)ofcharter
partiesorothercontractsrelatingtotheemploymentoftheVessel.IfsuchacontractexceedstheperiodstatedinBox9,
consenttheretoinwritingshallfirstbeobtainedfromtheOwners
(b)arrangingfortheprovisionofbunkerfuelsofthequalityspecifiedbytheOwnersasrequiredfortheVesselstrade
(c)voyageestimatingandaccountingandcalculationofhire,freights,demurrageand/ordespatchmoniesduefromordueto
thecharterersoftheVesselassistinginthecollectionofanysumsduetotheOwnersrelatedtothecommercialoperationof
theVesselinaccordancewithClause11(IncomeCollectedandExpensesPaidonBehalfofOwners)
IfanyoftheservicesunderSubclauses6(a),6(b)and6(c)aretobeexcludedfromtheManagementFee,remunerationfor
theseservicesmustbestatedinAnnexE(FeeSchedule).SeeSubclause12(e).
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(d)issuingvoyageinstructions
(e)appointingagents
(f)appointingstevedoresand
(g)arrangingsurveysassociatedwiththecommercialoperationoftheVessel.
7.
InsuranceArrangements
TheManagersshallarrangeinsurancesinaccordancewithClause10(InsurancePolicies),onsuchtermsastheOwnersshall
haveinstructedoragreed,inparticularregardingconditions,insuredvalues,deductibles,franchisesandlimitsofliability.
8.
ManagersObligations
(a)TheManagersundertaketousetheirbestendeavourstoprovidetheManagementServicesasagentsforandonbehalfof
theOwnersinaccordancewithsoundshipmanagementpracticeandtoprotectandpromotetheinterestsoftheOwnersin
allmattersrelatingtotheprovisionofserviceshereunder.
Providedhowever,thatintheperformanceoftheirmanagementresponsibilitiesunderthisAgreement,theManagersshallbe
entitledtohaveregardtotheiroverallresponsibilityinrelationtoallvesselsasmayfromtimetotimebeentrustedtotheir
managementandinparticular,butwithoutprejudicetothegeneralityoftheforegoing,theManagersshallbeentitledto
allocateavailablesupplies,manpowerandservicesinsuchmannerasintheprevailingcircumstancestheManagersintheir
absolutediscretionconsidertobefairandreasonable.
(b)WheretheManagersareprovidingtechnicalmanagementservicesinaccordancewithClause4(Technical
Management),theyshallprocurethattherequirementsoftheFlagStatearesatisfiedandtheyshallagreetobeappointedas
theCompany,assumingtheresponsibilityfortheoperationoftheVesselandtakingoverthedutiesandresponsibilities
imposedbytheISMCodeandtheISPSCode,ifapplicable.
9.
OwnersObligations
(a)TheOwnersshallpayallsumsduetotheManagerspunctuallyinaccordancewiththetermsofthisAgreement.Inthe
eventofpaymentaftertheduedateofanyoutstandingsumstheManagershallbeentitledtochargeinterestattheratestated
inBox13.
(b)WheretheManagersareprovidingtechnicalmanagementservicesinaccordancewithClause4(Technical
Management),theOwnersshall:
(i)report(orwheretheOwnersarenottheregisteredownersoftheVesselprocurethattheregisteredownersreport)to
theFlagStateadministrationthedetailsoftheManagersastheCompanyasrequiredtocomplywiththeISMandISPS
Codes
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(ii)procurethatanyofficersandratingssuppliedbythemorontheirbehalfcomplywiththerequirementsofSTCW95
and
(iii)instructsuchofficersandratingstoobeyallreasonableordersoftheManagers(intheircapacityastheCompany)
inconnectionwiththeoperationoftheManagerssafetymanagementsystem.
(c)WheretheManagersarenotprovidingtechnicalmanagementservicesinaccordancewithClause4(Technical
Management),theOwnersshall:
(i)procurethattherequirementsoftheFlagStatearesatisfiedandnotifytheManagersuponexecutionofthis
AgreementofthenameandcontactdetailsoftheorganizationthatwillbetheCompanybycompletingBox5
(ii)iftheCompanychangesatanytimeduringthisAgreement,notifytheManagersinatimelymannerofthename
andcontactdetailsoftheneworganization
(iii)procurethatthedetailsoftheCompany,includinganychangethereof,arereportedtotheFlagStateadministration
asrequiredtocomplywiththeISMandISPSCodes.TheOwnersshalladvisetheManagersinatimelymannerwhen
theFlagStateadministrationhasapprovedtheCompanyand
(iv)unlessotherwiseagreed,arrangeforthesupplyofprovisionsattheirownexpense.
(d)WheretheManagersareprovidingcrewmanagementservicesinaccordancewithSubclause5(a)theOwnersshall:
(i)informtheManagerspriortoorderingtheVesseltoanyexcludedoradditionalpremiumareaunderanyofthe
OwnersInsurancesbyreasonofwarrisksand/orpiracyorlikeperilsandpaywhateveradditionalcostsmayproperly
beincurredbytheManagersasaconsequenceofsuchordersincluding,ifnecessary,thecostsofreplacinganymember
oftheCrew.AnydelaysresultingfromnegotiationwithorreplacementofanymemberoftheCrewasaresultofthe
VesselbeingorderedtosuchanareashallbefortheOwnersaccount.ShouldtheVesselbewithinanareawhich
becomesanexcludedoradditionalpremiumareatheaboveprovisionsrelatingtocostanddelayshallapply
(ii)agreewiththeManagerspriortoanychangeofflagoftheVesselandpaywhateveradditionalcostsmayproperly
beincurredbytheManagersasaconsequenceofsuchchange.Ifagreementcannotbereachedtheneitherpartymay
terminatethisAgreementinaccordancewithSubclause22(e)and
(iii)provide,atnocosttotheManagers,inaccordancewiththerequirementsofthelawoftheFlagState,orhigher
standard,asmutuallyagreed,adequateCrewaccommodationandlivingstandards.
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(e)WheretheManagersarenottheCompany,theOwnersshallensurethatCrewareproperlyfamiliarizedwiththeirduties
inaccordancewiththeVesselsSMSandthatinstructionswhichareessentialtotheSMSareidentified,documentedand
giventotheCrewpriortosailing.
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SECTION4Insurance,Budgets,Income,ExpensesandFees
10. InsurancePolicies
TheOwnersshallprocure,whetherbyinstructingtheManagersunderClause7(InsuranceArrangements)orotherwise,that
throughouttheperiodofthisAgreement:
(a)attheOwnersexpense,theVesselisinsuredfornotlessthanitssoundmarketvalueorenteredforitsfullgrosstonnage,
asthecasemaybefor:
(i)hullandmachinerymarinerisks(includingbutnotlimitedtocrewnegligence)andexcessliabilities
(ii)protectionandindemnityrisks(includingbutnotlimitedtopollutionrisks,diversionexpensesand,excepttothe
extentinsuredseparatelybytheManagersinaccordancewithSubclause5(b)(i),CrewInsurances
NOTE:iftheManagersarenotprovidingcrewmanagementservicesunderSubclause5(a)(CrewManagement)orhave
agreednottoprovideCrewInsurancesseparatelyinaccordancewithSubclause5(b)(i),thensuchinsurancesmustbe
includedintheprotectionandindemnityriskscoverfortheVessel(seeSubclause10(a)(ii)above).
(iii)warrisks(includingbutnotlimitedtoblockingandtrapping,protectionandindemnity,terrorismandcrewrisks)
and
(iv)suchoptionalinsurancesasmaybeagreed(suchaspiracy,kidnapandransom,lossofhireandFD&D)(seeBox
12)
Subclauses10(a)(i)through10(a)(iv)allinaccordancewiththebestpracticeofprudentownersofvesselsofasimilartype
totheVessel,withsoundandreputableinsurancecompanies,underwritersorassociations(theOwnersInsurances)
(b)allpremiumsandcallsontheOwnersInsurancesarepaidbytheirduedate
(c)theOwnersInsurancesnametheManagersand,subjecttounderwritersagreement,anythirdpartydesignatedbythe
Managersasajointassured,withfullcover.Itisunderstoodthatinsomecases,suchasprotectionandindemnity,thenormal
termsforsuchcovermayimposeontheManagersandanysuchthirdpartyaliabilityinrespectofpremiumsorcallsarising
inconnectionwiththeOwnersInsurances.
Ifobtainableatnoadditionalcost,however,theOwnersshallprocuresuchinsurancesontermssuchthatneitherthe
Managersnoranysuchthirdpartyshallbeunderanyliabilityinrespectofpremiumsorcallsarisinginconnectionwiththe
OwnersInsurances.Inanyevent,onterminationofthisAgreementinaccordancewithClause21(Durationofthe
Agreement)andClause22(Termination),theOwnersshallprocurethattheManagersandanythirdpartydesignatedbythe
Managersasjointassuredshallceasetobejointassuredand,ifreasonablyachievable,thattheyshallbereleasedfromany
andallliabilityforpremiumsandcallsthatmayariseinrelationtotheperiodofthisAgreementand
(d)writtenevidenceisprovided,tothereasonablesatisfactionoftheManagers,oftheOwnerscompliancewiththeir
obligationsunderthisClause10withinareasonabletimeofthecommencementoftheAgreement,andofeachrenewaldate
and,ifspecificallyrequested,ofeachpaymentdateoftheOwnersInsurances.
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11. IncomeCollectedandExpensesPaidonBehalfofOwners
(a)ExceptasprovidedinSubclause11(c)allmoniescollectedbytheManagersunderthetermsofthisAgreement(other
thanmoniespayablebytheOwnerstotheManagers)andanyinterestthereonshallbeheldtothecreditoftheOwnersina
separatebankaccount.
(b)AllexpensesincurredbytheManagersunderthetermsofthisAgreementonbehalfoftheOwners(includingexpenses
asprovidedinClause12(c)maybedebitedagainsttheOwnersintheaccountreferredtounderSubclause11(a)butshallin
anyeventremainpayablebytheOwnerstotheManagersondemand.
(c)AllmoniescollectedbytheManagersunderClause6(CommercialManagement)shallbepaidintoabankaccountin
thenameoftheOwnersorasmaybeotherwiseadvisedbytheOwnersinwriting.
12. ManagementFeeandExpenses
(a)TheOwnersshallpaytotheManagersanannualmanagementfeeasstatedinBox14fortheirservicesasManagers
underthisAgreement,whichshallbepayableinequalmonthlyinstalmentsinadvance,thefirstinstalment(prorataif
appropriate)beingpayableonthecommencementofthisAgreement(seeClause2(CommencementandAppointment)and
Box2)andsubsequentinstalmentsbeingpayableatthebeginningofeverycalendarmonth.Themanagementfeeshallbe
payabletotheManagersnominatedaccountstatedinBox15.
(b)Themanagementfeeshallbesubjecttoanannualreviewandtheproposedfeeshallbepresentedintheannualbudgetin
accordancewithSubclause13(a).
(c)TheManagersshall,atnoextracosttotheOwners,providetheirownofficeaccommodation,officestaff,facilitiesand
stationery.WithoutlimitingthegeneralityofthisClause12(ManagementFeeandExpenses)theOwnersshallreimburse
theManagersforpostageandcommunicationexpenses,travellingexpenses,andotheroutofpocketexpensesproperly
incurredbytheManagersinpursuanceoftheManagementServices.AnydaysusedbytheManagerspersonneltravelling
toorfromorattendingontheVesselorotherwiseusedinconnectionwiththeManagementServicesinexcessof30days
thoseagreedinthebudgetshallbechargedatthedailyratestatedinBox16.
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(d)IftheOwnersdecidetolayuptheVesselandsuchlayuplastsformorethanthenumberofmonthsstatedinBox17,an
appropriatereductionoftheManagementFeefortheperiodexceedingsuchperioduntilonemonthbeforetheVesselis
againputintoserviceshallbemutuallyagreedbetweentheparties.IftheManagersareprovidingcrewmanagement
servicesinaccordancewithSubclause5(a),consequentialcostsofreductionandreinstatementoftheCrewshallbeforthe
Ownersaccount.IfagreementcannotbereachedtheneitherpartymayterminatethisAgreementinaccordancewithSub
clause22(e).
(e)SaveasotherwiseprovidedinthisAgreement,alldiscountsandcommissionsobtainedbytheManagersinthecourseof
theperformanceoftheManagementServicesshallbecreditedtotheOwners.
13. BudgetsandManagementofFunds
(a)TheManagersinitialbudgetissetoutinAnnexChereto.Subsequentbudgetsshallbefortwelvemonthperiodsand
shallbepreparedbytheManagersandpresentedtotheOwnersnotlessthanthreemonthsbeforetheendofthebudgetyear.
(b)TheOwnersshallstatetotheManagersinatimelymanner,butinanyeventwithinonemonthofpresentation,whether
ornottheyagreetoeachproposedannualbudget.Thepartiesshallnegotiateingoodfaithandiftheyfailtoagreeonthe
annualbudget,includingthemanagementfee,eitherpartymayterminatethisAgreementinaccordancewithSubclause
22(e).
(c)Followingtheagreementofthebudget,theManagersshallprepareandpresenttotheOwnerstheirestimateofthe
workingcapitalrequirementfortheVesselandshalleachmonthrequesttheOwnersinwritingtopaythefundsrequiredto
runtheVesselfortheensuingmonth,includingthepaymentofanyoccasionalorextraordinaryitemofexpenditure,suchas
emergencyrepaircosts,additionalinsurancepremiums,bunkersorprovisions.SuchfundsshallbereceivedbytheOwners
oftheManagerswrittenrequestandshallbeheldtothecreditoftheOwnersinaseparatebankaccount.
(d)TheManagersshallatalltimesmaintainandkeeptrueandcorrectaccountsinrespectoftheManagementServicesin
accordancewiththerelevantInternationalFinancialReportingStandardsorsuchotherstandardasthepartiesmayagree,
includingrecordsofallcostsandexpenditureincurred,andproduceacomparisonbetweenbudgetedandactualincomeand
expenditureoftheVesselinsuchformandatsuchintervalsasshallbemutuallyagreed.
TheManagersshallmakesuchaccountsavailableforinspectionandauditingbytheOwnersand/ortheirrepresentativesin
theManagersofficesorbyelectronicmeans,providedreasonablenoticeisgivenbytheOwners.
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(e)Notwithstandinganythingcontainedherein,theManagersshallinnocircumstancesberequiredtouseorcommittheir
ownfundstofinancetheprovisionoftheManagementServices.
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SECTION5Legal,GeneralandDurationofAgreement
14. TradingRestrictions
IftheManagersareprovidingcrewmanagementservicesinaccordancewithSubclause5(a)(CrewManagement),the
OwnersandtheManagerswill,priortothecommencementofthisAgreement,agreeonanytradingrestrictionstotheVessel
thatmayresultfromthetermsandconditionsoftheCrewsemployment.
15. Replacement
IftheManagersareprovidingcrewmanagementservicesinaccordancewithSubclause5(a)(CrewManagement),the
Ownersmayrequirethereplacement,attheirownexpense,atthenextreasonableopportunity,ofanymemberoftheCrew
foundonreasonablegroundstobeunsuitableforservice.IftheManagershavefailedtofulfiltheirobligationsinproviding
suitablequalifiedCrewwithinthemeaningofSubclause5(a)(CrewManagement),thensuchreplacementshallbeatthe
Managersexpense.
16. ManagersRighttoSubContract
TheManagersshallnotsubcontractanyoftheirobligationshereunderwithoutthepriorwrittenconsentoftheOwners
whichshallnotbeunreasonablywithheld.IntheeventofsuchasubcontracttheManagersshallremainfullyliableforthe
dueperformanceoftheirobligationsunderthisAgreement.ServicesexecutedbytheManagersparent,daughteroraffiliated
companiesshallnotberegardedasSubContractinginrelationtothisclause.
17. Responsibilities
(a)ForceMajeure
Neitherpartyshallbeliableforanyloss,damageordelayduetoanyofthefollowingforcemajeureeventsand/or
conditionstotheextentthatthepartyinvokingforcemajeureispreventedorhinderedfromperforminganyoralloftheir
obligationsunderthisAgreement,providedtheyhavemadeallreasonableeffortstoavoid,minimizeorpreventtheeffectof
sucheventsand/orconditions:
(i)actsofGod
(ii)anyGovernmentrequisition,control,intervention,requirementorinterference
(iii)anycircumstancesarisingoutofwar,threatenedactofwarorwarlikeoperations,actsofterrorism,sabotageor
piracy,ortheconsequencesthereof
(iv)riots,civilcommotion,blockadesorembargoes
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(v)epidemics
(vi)earthquakes,landslides,floodsorotherextraordinaryweatherconditions
(vii)strikes,lockoutsorotherindustrialaction,unlesslimitedtotheemployees(whichshallnotincludetheCrew)of
thepartyseekingtoinvokeforcemajeure
(viii)fire,accident,explosionexceptwherecausedbynegligenceofthepartyseekingtoinvokeforcemajeureand
(ix)anyothersimilarcausebeyondthereasonablecontrolofeitherparty.
(b)LiabilitytoOwners
(i)WithoutprejudicetoSubclause17(a)theManagersshallbeundernoliabilitywhatsoevertotheOwnersforany
loss,damage,delayorexpenseofwhatsoevernature,whetherdirectorindirect,(includingbutnotlimitedtolossof
profitarisingoutoforinconnectionwithdetentionofordelaytotheVessel)andhowsoeverarisinginthecourseof
performanceoftheManagementServicesUNLESSsameisprovedtohaveresultedsolelyfromthenegligence,gross
negligenceorwilfuldefaultoftheManagersortheiremployeesoragents,orsubcontractorsemployedbythemin
connectionwiththeVessel,inwhichcase(savewhereloss,damage,delayorexpensehasresultedfromtheManagers
personalactoromissioncommittedwiththeintenttocausesameorrecklesslyandwithknowledgethatsuchloss,
damage,delayorexpensewouldprobablyresult)theManagersliabilityforeachincidentorseriesofincidentsgiving
risetoaclaimorclaimsshallneverexceedatotaloften(10)timestheannualmanagementpayablehereunder.
(ii)ActsoromissionsoftheCrewNotwithstandinganythingthatmayappeartothecontraryinthisAgreement,the
ManagersshallnotbeliableforanyactsoromissionsoftheCrew,evenifsuchactsoromissionsarenegligent,grossly
negligentorwilful,exceptonlytotheextentthattheyareshowntohaveresultedfromafailurebytheManagersto
dischargetheirobligationsunderClause5(a)(CrewManagement),inwhichcasetheirliabilityshallbelimitedin
accordancewiththetermsofthisClause17(Responsibilities).
(c)Indemnity
ExcepttotheextentandsolelyfortheamountthereinsetoutthattheManagerswouldbeliableunderSubclause17(b)the
OwnersherebyundertaketokeeptheManagersandtheiremployees,agentsandsubcontractorsindemnifiedandtohold
themharmlessagainstallactions,proceedings,claims,demandsorliabilitieswhatsoeverorhowsoeverarisingwhichmay
bebroughtagainstthemorincurredorsufferedbythemarisingoutoforinconnectionwiththeperformanceofthis
Agreement,andagainstandinrespectofall
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costs,loss,damagesandexpenses(includinglegalcostsandexpensesonafullindemnitybasis)whichtheManagersmay
sufferorincur(eitherdirectlyorindirectly)inthecourseoftheperformanceofthisAgreement.
(d)Himalaya
ItisherebyexpresslyagreedthatnoemployeeoragentoftheManagers(includingeverysubcontractorfromtimetotime
employedbytheManagers)shallinanycircumstanceswhatsoeverbeunderanyliabilitywhatsoevertotheOwnersforany
loss,damageordelayofwhatsoeverkindarisingorresultingdirectlyorindirectlyfromanyact,neglectordefaultonhis
partwhileactinginthecourseoforinconnectionwithhisemploymentand,withoutprejudicetothegeneralityofthe
foregoingprovisionsinthisClause17(Responsibilities),everyexemption,limitation,conditionandlibertyherein
containedandeveryright,exemptionfromliability,defenceandimmunityofwhatsoevernatureapplicabletotheManagers
ortowhichtheManagersareentitledhereundershallalsobeavailableandshallextendtoprotecteverysuchemployeeor
agentoftheManagersactingasaforesaidandforthepurposeofalltheforegoingprovisionsofthisClause17
(Responsibilities)theManagersareorshallbedeemedtobeactingasagentortrusteeonbehalfofandforthebenefitofall
personswhoareormightbetheirservantsoragentsfromtimetotime(includingsubcontractorsasaforesaid)andallsuch
personsshalltothisextentbeorbedeemedtobepartiestothisAgreement.
18. GeneralAdministration
(a)TheManagersshallkeeptheOwnersand,ifappropriate,theCompanyinformedinatimelymannerofanyincidentof
whichtheManagersbecomeawarewhichgivesormaygiverisetodelaytotheVesselorclaimsordisputesinvolvingthird
parties.
(b)TheManagersshallhandleandsettleallclaimsanddisputesarisingoutoftheManagementServiceshereunder,unless
theOwnersinstructtheManagersotherwise.TheManagersshallkeeptheOwnersappropriatelyinformedinatimely
mannerthroughoutthehandlingofsuchclaimsanddisputes.
(c)TheOwnersmayrequesttheManagerstobringordefendotheractions,suitsorproceedingsrelatedtotheManagement
Services,ontermstobeagreed.
(d)TheManagersshallhavepowertoobtainappropriatelegalortechnicalorotheroutsideexpertadviceinrelationtothe
handlingandsettlementofclaimsinrelationtoSubclauses18(a)and18(b)anddisputesandanyothermattersaffectingthe
interestsoftheOwnersinrespectoftheVessel,unlesstheOwnersinstructtheManagerotherwise.
(e)Ongivingreasonablenotice,theOwnersmayrequest,andtheManagersshallinatimelymannermakeavailable,all
documentation,informationandrecordsinrespectofthematterscoveredbythisAgreementeitherrelatedtomandatory
rulesorregulationsorotherobligationsapplyingtotheOwnersinrespectoftheVessel(includingbutnotlimitedtoSTCW
95,theISMCodeandISPSCode)totheextentpermittedbyrelevantlegislation.
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Ongivingreasonablenotice,theManagersmayrequest,andtheOwnersshallinatimelymannermakeavailable,all
documentation,informationandrecordsreasonablyrequiredbytheManagerstoenabletoperformtheManagement
Services.
(f)TheOwnersshallarrangefortheprovisionofanynecessaryguaranteebondorothersecurity.
(g)AnycostsincurredbytheManagersincarryingouttheirobligationsaccordingtothisClause18(General
Administration)shallbereimbursedbytheOwners.
19. InspectionofVessel
TheOwnersmayatanytimeaftergivingreasonablenoticetotheManagersinspecttheVesselforanyreasontheyconsider
necessary.
20. CompliancewithLawsandRegulations
Thepartieswillnotdoorpermittobedoneanythingwhichmightcauseanybreachorinfringementofthelawsand
regulationsoftheFlagState,oroftheplaceswheretheVesseltrades.
21. DurationoftheAgreement
(a)ThisAgreementshallcomeintoeffectatthedatestatedinBox2andshallcontinueuntilterminatedbyeitherpartyby
givingnoticetotheotherinwhicheventthisAgreementshallterminateupontheexpirationofthelaterofthenumberof
monthsstatedinBox18oraperiodofthree(3)two(2)monthsfromthedateonwhichsuchnoticeisreceived,unless
terminatedearlierinaccordancewithClause22(Termination).
(b)WheretheVesselisnotatamutuallyconvenientportorplaceontheexpiryofsuchperiod,thisAgreementshall
terminateonthesubsequentarrivaloftheVesselatthenextmutuallyconvenientportorplace.
22. Termination
(a)OwnersorManagersdefault
IfeitherpartyfailstomeettheirobligationsunderthisAgreement,theotherpartymaygivenoticetothepartyindefault
requiringthemtoremedyit.Intheeventthatthepartyindefaultfailstoremedyitwithinareasonabletimetothereasonable
satisfactionoftheotherparty,thatpartyshallbeentitledtoterminatethisAgreementwithimmediateeffectbygivingnotice
tothepartyindefault.
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(b)NotwithstandingSubclause22(a):
(i)TheManagersshallbeentitledtoterminatetheAgreementwithimmediateeffectbygivingnoticetotheOwnersif
anymoniespayablebytheOwnersand/ortheownersofanyassociatedvessel,detailsofwhicharelistedinAnnex
D,shallnothavebeenreceivedintheManagersnominatedaccountwithintendays(10)ofreceiptbytheOwnersof
theManagerswrittenrequest,oriftheVesselisrepossessedbytheMortgagee(s).
(ii)IftheOwnersproceedwiththeemploymentoforcontinuetoemploytheVesselinthecarriageofcontraband,
blockaderunning,orinanunlawfultrade,oronavoyagewhichinthereasonableopinionoftheManagersisunduly
hazardousorimproper,theManagersmaygivenoticeofthedefaulttotheOwners,requiringthemtoremedyitassoon
aspracticallypossible.IntheeventthattheOwnersfailtoremedyitwithinareasonabletimetothesatisfactionofthe
Managers,theManagersshallbeentitledtoterminatetheAgreementwithimmediateeffectbynotice.
(iii)IfeitherpartyfailstomeettheirrespectiveobligationsunderSubclause5(b)(CrewInsurances)andClause10
(InsurancePolicies),theotherpartymaygivenoticetothepartyindefaultrequiringthemtoremedyitwithintwenty
(20)ten(10)days,failingwhichtheotherpartymayterminatethisAgreementwithimmediateeffectbygivingnotice
tothepartyindefault.
(c)ExtraordinaryTermination
ThisAgreementshallbedeemedtobeterminatedinthecaseofthesaleoftheVesselor,iftheVesselbecomesatotallossor
isdeclaredasaconstructiveorcompromisedorarrangedtotallossorisrequisitionedorhasbeendeclaredmissingor,if
bareboatchartered,unlessotherwiseagreed,whenthebareboatchartercomestoanend.
(d)ForthepurposeofSubclause22(c)hereof:
(i)thedateuponwhichtheVesselistobetreatedashavingbeensoldorotherwisedisposedofshallbethedateon
whichtheVesselsownersceasetobetheregisteredownersoftheVessel
(ii)theVesselshallbedeemedtobelosteitherwhenithasbecomeanactualtotallossoragreementhasbeenreached
withtheVesselsunderwritersinrespectofitsconstructivetotallossorifsuchagreementwiththeVesselsunderwriters
isnotreacheditisadjudgedbyacompetenttribunalthataconstructivelossoftheVesselhasoccurredand
(iii)thedateuponwhichtheVesselistobetreatedasdeclaredmissingshallbeten(10)daysaftertheVesselwaslast
reportedorwhentheVesselisrecordedasmissingbytheVesselsunderwriters,whicheveroccursfirst.Amissing
vesselshallbedeemedlostinaccordancewiththeprovisionsofSubclause22(d)(ii).
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(e)IntheeventthepartiesfailtoagreetheannualbudgetinaccordancewithSubclause13(b),ortoagreeachangeofflag
inaccordancewithSubclause9(d)(ii),ortoagreetoareductionintheMangementFeeinaccordancewithSubclause
12(d),eitherpartymayterminatethisAgreementbygivingtheotherpartynotlessthanonemonthsnotice,theresultof
whichwillbetheexpiryoftheAgreementattheendofthecurrentbudgetperiodoronexpiryofthenoticeperiod,
whicheveristhelater.
(f)ThisAgreementshallterminateforthwithintheeventofanorderbeingmadeorresolutionpassedforthewindingup,
dissolution,liquidationorbankruptcyofeitherparty(otherwisethanforthepurposeofreconstructionoramalgamation)or
ifareceiveroradministratorisappointed,orifitsuspendspayment,ceasestocarryonbusinessormakesanyspecial
arrangementorcompositionwithitscreditors.
(g)IntheeventoftheterminationofthisAgreementforanyreasonotherthandefaultbytheManagersthemanagementfee
payabletotheManagersaccordingtotheprovisionsofClause12(ManagementFeeandExpenses),shallcontinuetobe
payableforafurtherperiodofthenumberofmonthsstatedinBox19asfromtheeffectivedateoftermination.IfBox19is
leftblankthenninety(90)daysshallapply.
(h)Inaddition,wheretheManagersprovideCrewfortheVesselinaccordancewithClause5(a)(CrewManagement):
(i)theOwnersshallcontinuetopayCrewSupportCostsduringthesaidfurtherperiodofthenumberofmonthsstated
inBox19and
(ii)theOwnersshallpayanequitableproportionofanySeveranceCostswhichmaybeincurred,notexceedingthe
amountstatedinBox20.TheManagersshallusetheirreasonableendeavourstominimizesuchSeveranceCosts.
(i)Onthetermination,forwhateverreason,ofthisAgreement,theManagersshallreleasetotheOwners,ifsorequested,the
originalswherepossible,orotherwisecertifiedcopies,ofallaccountsandalldocumentsspecificallyrelatingtotheVessel
anditsoperation.
(j)TheterminationofthisAgreementshallbewithoutprejudicetoallrightsaccruedduebetweenthepartiespriortothe
dateoftermination.
23. BIMCODisputeResolutionClause
(a)ThisAgreementshallbegovernedbyandconstruedinaccordancewithEnglishlawandanydisputearisingoutoforin
connectionwiththisAgreementshallbereferredtoarbitrationinLondoninaccordancewiththeArbitrationAct1996or
anystatutorymodificationorreenactmentthereofsavetotheextentnecessarytogiveeffecttotheprovisionsofthisClause.
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ThearbitrationshallbeconductedinaccordancewiththeLondonMaritimeArbitratorsAssociation(LMAA)Termscurrent
atthetimewhenthearbitrationproceedingsarecommenced.
Thereferenceshallbetothreearbitrators.Apartywishingtoreferadisputetoarbitrationshallappointitsarbitratorand
sendnoticeofsuchappointmentinwritingtotheotherpartyrequiringtheotherpartytoappointitsownarbitratorwithin
14calendardaysofthatnoticeandstatingthatitwillappointitsarbitratorassolearbitratorunlesstheotherpartyappoints
itsownarbitratorandgivesnoticethatithasdonesowithinthe14daysspecified.Iftheotherpartydoesnotappointits
ownarbitratorandgivenoticethatithasdonesowithinthe14daysspecified,thepartyreferringadisputetoarbitration
may,withouttherequirementofanyfurtherpriornoticetotheotherparty,appointitsarbitratorassolearbitratorandshall
advisetheotherpartyaccordingly.Theawardofasolearbitratorshallbebindingonbothpartiesasifhehadbeen
appointedbyagreement.
Nothinghereinshallpreventthepartiesagreeinginwritingtovarytheseprovisionstoprovidefortheappointmentofasole
arbitrator.
IncaseswhereneithertheclaimnoranycounterclaimexceedsthesumofUSD50,000(orsuchothersumasthepartiesmay
agree)thearbitrationshallbeconductedinaccordancewiththeLMAASmallClaimsProcedurecurrentatthetimewhenthe
arbitrationproceedingsarecommenced.
(b)ThisAgreementshallbegovernedbyandconstruedinaccordancewithTitle9oftheUnitedStatesCodeandthe
MaritimeLawoftheUnitedStatesandanydisputearisingoutoforinconnectionwiththisAgreementshallbereferredto
threepersonsatNewYork,onetobeappointedbyeachofthepartieshereto,andthethirdbythetwosochosentheir
decisionorthatofanytwoofthemshallbefinal,andforthepurposesofenforcinganyaward,judgmentmaybeenteredon
anawardbyanycourtofcompetentjurisdiction.Theproceedingsshallbeconductedinaccordancewiththerulesofthe
SocietyofMaritimeArbitrators,Inc.
IncaseswhereneithertheclaimnoranycounterclaimexceedsthesumofUSD50,000(orsuchothersumasthepartiesmay
agree)thearbitrationshallbeconductedinaccordancewiththeShortenedArbitrationProcedureoftheSocietyofMaritime
Arbitrators,Inc.currentatthetimewhenthearbitrationproceedingsarecommenced.
(c)ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheplacemutuallyagreedbythe
partiesandanydisputearisingoutoforinconnectionwiththisAgreementshallbereferredtoarbitrationatamutually
agreedplace,subjecttotheproceduresapplicablethere.
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(d)NotwithstandingSubclauses23(a),23(b)or23(c)above,thepartiesmayagreeatanytimetorefertomediationany
differenceand/ordisputearisingoutoforinconnectionwiththisAgreement.
(i)InthecaseofadisputeinrespectofwhicharbitrationhasbeencommencedunderSubclauses23(a),23(b)or23(c)
above,thefollowingshallapply:
(ii)Eitherpartymayatanytimeandfromtimetotimeelecttoreferthedisputeorpartofthedisputetomediationby
serviceontheotherpartyofawrittennotice(theMediationNotice)callingontheotherpartytoagreetomediation.
(iii)Theotherpartyshallthereuponwithin14calendardaysofreceiptoftheMediationNoticeconfirmthattheyagree
tomediation,inwhichcasethepartiesshallthereafteragreeamediatorwithinafurther14calendardays,failingwhich
ontheapplicationofeitherpartyamediatorwillbeappointedpromptlybytheArbitrationTribunal(theTribunal)or
suchpersonastheTribunalmaydesignateforthatpurpose.Themediationshallbeconductedinsuchplaceandin
accordancewithsuchprocedureandonsuchtermsasthepartiesmayagreeor,intheeventofdisagreement,asmaybe
setbythemediator.
(iv)Iftheotherpartydoesnotagreetomediate,thatfactmaybebroughttotheattentionoftheTribunalandmaybe
takenintoaccountbytheTribunalwhenallocatingthecostsofthearbitrationasbetweentheparties.
(v)Themediationshallnotaffecttherightofeitherpartytoseeksuchreliefortakesuchstepsasitconsidersnecessary
toprotectitsinterest.
(vi)EitherpartymayadvisetheTribunalthattheyhaveagreedtomediation.Thearbitrationprocedureshallcontinue
duringtheconductofthemediationbuttheTribunalmaytakethemediationtimetableintoaccountwhensettingthe
timetableforstepsinthearbitration.
(vii)Unlessotherwiseagreedorspecifiedinthemediationterms,eachpartyshallbearitsowncostsincurredinthe
mediationandthepartiesshallshareequallythemediatorscostsandexpenses.
(viii)Themediationprocessshallbewithoutprejudiceandconfidentialandnoinformationordocumentsdisclosed
duringitshallberevealedtotheTribunalexcepttotheextentthattheyaredisclosableunderthelawandprocedure
governingthearbitration.
(Note:Thepartiesshouldbeawarethatthemediationprocessmaynotnecessarilyinterrupttimelimits.)
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(e)IfBox21inPartIisnotappropriatelyfilledin,Subclause23(a)ofthisClauseshallapply.
Note:Subclauses23(a),23(b)and23(c)arealternativesindicatealternativeagreedinBox21.Subclause23(d)shall
applyinallcases.
24. Notices
(a)Allnoticesgivenbyeitherpartyortheiragentstotheotherpartyortheiragentsinaccordancewiththeprovisionsofthis
Agreementshallbeinwritingandshall,unlessspecificallyprovidedinthisAgreementtothecontrary,besenttothe
addressforthatotherpartyassetoutinBoxes22and23orasappropriateortosuchotheraddressastheotherpartymay
designateinwriting.
Anoticemaybesentbyregisteredorrecordedmail,facsimile,electronicallyordeliveredbyhandinaccordancewiththis
Subclause24(a).
(b)AnynoticegivenunderthisAgreementshalltakeeffectonreceiptbytheotherpartyandshallbedeemedtohavebeen
received:
(i)
ifposted,ontheseventh(7th)dayafterposting
(ii)
ifsentbyfacsimileorelectronically,onthedayoftransmissionand
(iii)
ifdeliveredbyhand,onthedayofdelivery.
Andineachcaseproofofposting,handinginortransmissionshallbeproofthatnoticehasbeengiven,unlessproventothe
contrary.
25. EntireAgreement
ThisAgreementconstitutestheentireagreementbetweenthepartiesandnopromise,undertaking,representation,warranty
orstatementbyeitherpartypriortothedatestatedinBox2shallaffectthisAgreement.AnymodificationofthisAgreement
shallnotbeofanyeffectunlessinwritingsignedbyoronbehalfoftheparties.
26. ThirdPartyRights
ExcepttotheextentprovidedinSubclauses17(c)(Indemnity)and17(d)(Himalaya),nothirdpartiesmayenforceanyterm
ofthisAgreement.
27. PartialValidity
IfanyprovisionofthisAgreementisorbecomesorisheldbyanyarbitratororothercompetentbodytobeillegal,invalidor
unenforceableinanyrespectunderanylaworjurisdiction,theprovisionshallbedeemedtobeamendedtotheextent
necessarytoavoid
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suchillegality,invalidityorunenforceability,or,ifsuchamendmentisnotpossible,theprovisionshallbedeemedtobe
deletedfromthisAgreementtotheextentofsuchillegality,invalidityorunenforceability,andtheremainingprovisions
shallcontinueinfullforceandeffectandshallnotinanywaybeaffectedorimpairedthereby.
28. Interpretation
InthisAgreement:
(a)Singular/Plural
Thesingularincludesthepluralandviceversaasthecontextadmitsorrequires.
(b)Readings
TheindexandheadingstotheclausesandappendicestothisAgreementareforconvenienceonlyandshallnotaffectits
constructionorinterpretation.
(c)Day
Daymeansacalendardayunlessexpresslystatedtothecontrary.
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EX10.18
NOVATIONAGREEMENTFORAMENDED&RESTATEDLEASE,OPERATION&
Thisagreementismadeon18September2013
Between
(1) PTPerusahaanGasNegara(Persero)Tbk,astateownedlimitedliabilitycompanyestablishedunderIndonesian
ContinuingParty)
(2) HeghLNGLtd.,acompanyincorporatedunderthelawsofBermudaandhavingitsregisteredofficeatCanonsCourt,22
VictoriaStreet,HamiltonHM12,Bermuda(theTransferor)and
(3) PTHoeghLNGLampung,alimitedliabilitycompanydulyestablishedandexistingunderthelawsoftheRepublicof
IndonesiaandhavingitsregisteredofficeatWisma46,29thFloor,J1JenderalSudirmanKav1,Jakarta10220,Indonesia
(theTransferee).
Recitals
A.
TheContinuingPartyandtheTransferorarepartiestotheamendedandrestatedlease,operationandmaintenanceagreement
dated17October2012,acopyofwhichissetoutinthefirstschedulehereto(theSubjectAgreement).
B.
UndertheSubjectAgreement,TransferoragreestoleasetotheContinuingParty,andoperateandmaintain,afloating
storageandregasificationunitandprocureamooringsysteminconnectionwiththeLampungLNGFloatingStorageand
C.
TheTransferorwishestobereleasedfromallitsobligationsandliabilitiesandtransferallitsrightsundertheSubject
AgreementtotheTransferee,andtheContinuingPartyagreestosuchrelease.TheTransfereewishestoassumesuch
obligationsandliabilities.
Operativeprovisions
Novation
1.
Inconsiderationoftheotherpartiesenteringintotheirrespectiveobligationsunderthisagreement,witheffectfromthedate
ofthisagreement:
1.1 theContinuingPartyherebyreleasesanddischargestheTransferor(includingwithoutlimitationinrespectofany
breachoftheSubjectAgreementbytheTransferorantecedenttotheEffectiveDate)fromalloftheTransferors
obligationsandliabilitiesunderorinconnectionwiththeSubjectAgreement,andfromallclaimsanddemands
whatsoeverarisingundertheSubjectAgreementonorafterthedateofthisagreement(theEffectiveDate)andthe
TransferorherebyceasestobeapartytotheSubjectAgreement
1.2 saveasprovidedinsection9ofSchedule6oftheSubjectAgreement,theTransferorherebyassignsallofitsrights
undertheSubjectAgreementtotheTransferee(including,withoutlimitation,inrespectofanybreachbythe
ContinuingPartyoftheSubjectAgreementantecedenttotheEffectiveDate),andallobligationsandliabilitiesofthe
ContinuingPartytotheTransferorundertheSubjectAgreementherebycease
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1.3 theTransfereeherebyagreestoassumeandperformtheobligationsandliabilitiesfromwhichtheTransferorisreleased
anddischargedpursuanttoclause1.1ofthisagreement(including,withoutlimitation,inrespectofanybreachofthe
SubjectAgreementbytheTransferorantecedenttotheEffectiveDate)andtobeboundbyitstermsinallrespectsasif
theTransfereehadbeennamedasapartytheretoinplaceoftheTransferorand
1.4 theContinuingPartyherebyagreestoperformtheContinuingPartysobligationsandliabilitiesunderorinconnection
withtheSubjectAgreementsandtobeboundbyitstermsinallrespectsasiftheTransfereehadbeennamedasaparty
thereto,inplaceoftheTransferor.
2.
ThetermsofthisagreementareconditionalupontheTransfereehavingprocuredonorbeforeexecutionofthisagreement
thedeliverytotheContinuingPartyofaguaranteesubstantiallyintheformsetoutinthesecondscheduletothisagreement
(theIndonesianOwnerGuarantee).
3.
PromptlyfollowingexecutionofthisagreementtheTransfereeshallprovidetotheContinuingPartycustomarylegal
opinionsinformandsubstancereasonablysatisfactorytotheContinuingPartyfromareputablecounselrelatingtothe
enforceabilityoftheIndonesianOwnerGuarantee,thepowerandauthorityoftheGuarantortoenterintoandperformthe
IndonesianOwnerGuaranteeanddueexecutionbytheGuarantoroftheIndonesianOwnerGuaranteeandwordsdefinedin
theSubjectAgreementshallhavethesamemeaninginthisclause.
Notices
4.
ForthepurposesoftheSubjectAgreement,theTransfereesaddressfornoticesshallbeasfollows:
Address: Wisma46,29thfloor,JlJenderalSudirmanKav1,Jakarta10220,Indonesia
FaxNo:
+62215742181
Addressedforthepersonalattentionof:PresidentDirector
CopiedtoHoeghLNGAsiaPteLtd
Address: 72AnsonRoad,#0703AnsonHouse,Singapore079911
FaxNo:
+6564386493
Addressedforthepersonalattentionof:ProjectManager
Counterparts
5.
Thisagreementmaybeexecutedinanynumberofcounterpartsandbythepartiestoitonseparatecounterparts,eachof
whichshallbeanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrument.
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EX10.18
6.
ThisagreementshallbegovernedbyandconstruedinaccordancewiththelawsofRepublicofIndonesia.
7.
Anydisputearisingoutoforinconnectionwiththeagreement,includinganyquestionregardingitsexistence,validityor
termination,shallbereferredtoandfinallyresolvedbyarbitrationinSingaporeinaccordancewiththeArbitrationRulesof
theSingaporeInternationalArbitrationCentre(SIACRules)forthetimebeinginforce,whichrulesaredeemedtobe
incorporatedbyreferenceinthisClause.Thetribunalshallconsistofthreearbitrators.Thelanguageofthearbitrationshall
beEnglish.
8.
ItisherebyagreedthatanarbitraltribunalconstitutedundertheSubjectAgreementmayconsolidateanarbitration
hereunder.
9.
Eachpartyagreesthatitwillnotinstituteanycourtproceedingsarisingoutoforinconnectionwiththisagreement(and,in
theeventofconsolidation,theSubjectAgreement)exceptonlytoenforceinanycourthavingjurisdictionanyaward
renderedbythearbitraltribunal.
10. Decisionsofthearbitraltribunalshallbebindinginfinalinstanceuponthepartieshereto.Thepartiesheretoexpresslyagree
inaccordancewithLawNo.30of1999onArbitrationandAlternativeDisputeResolution(theArbitrationLaw)thatin
decidingthedisagreementordispute,thearbitratorsshallbeboundbystrictrulesoflaw,andmaynotpurporttodecidethe
sameexaequoetbono.ThepartiesfurtheragreetowaiveanyIndonesianlawsandregulations,decreesorpolicieshaving
theforceoflawthatwouldotherwisegivearighttoappealanyarbitrationdecisionoraward,andtotheextentapplicable,
assuchthatinconformitywithArticle60orArbitrationLaw,thereshallbenoappealand/orcessationtoanycourtoflaw
fromthedecisionofthearbitratorsandthepartiesshallnotchallengeorresisttheenforcementactiontakenbythepartyin
whosefavourthedecisionofthearbitratorswasgiven.
11. ThepartiesheretoexpresslyagreetowaivetheapplicabilityofArticle48.1oftheArbitrationLawassuchthatthemandate
ofthearbitratorsdulyconstitutedinaccordancewiththetermsofthisLeaseshallremainineffectuntilafinalarbitralaward
hasbeenissuedbythearbitrators.
GoverningLanguage
12. ThisagreementisexecutedintheEnglishlanguage.IncompliancewithLawNo.24of2009regardingNationalFlag,
Language,EmblemandSong,thepartiesagreetotranslatethisagreementintotheIndonesianlanguagewithin90daysasof
thedateofthisagreementoranyotherdateasagreedbetweentheparties.TheIndonesianlanguageagreementshallhavethe
dateofthisagreementasitseffectivedate.SuchIndonesianlanguageversionshallformanintegralandinseparablepartof
theEnglishversion.IntheeventofinconsistenciesordifferencesininterpretationbetweentheEnglishandIndonesiantexts,
theEnglishversionshallprevailandtherelevantIndonesianversionshallbedeemedtobeautomaticallyamendedto
conformwithandtomaketherelevantIndonesiantextconsistentwiththerelevantEnglishtext.
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13. Furthermore,eachpartyagreesitwillnotciteorinvokeLaw24/2009oranyregulationissuedthereunder,orclaimthatthe
factthisagreementwasexecutedintheEnglishlanguageonly,to:
13.1 defenditsnonperformanceorbreachofitsobligationsunderthisagreementor
13.2 allegethatthisagreementisagainstpublicpolicyorotherwisedoesnotconstituteitslegal,validandbinding
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EX10.18
/s/RUNEKARLSEN
Signature
RuneKarlsen
Name
SeniorTechnicalManager
Capacity
11/913
Date
SignedforandonbehalfofPTPerushaanGasNegara
(Persero)Tbk
/s/DJOKOSAPUTRO
Signature
DjokoSaputro
Name
DirofTech&Development.
Capacity
18Sept.2013.
Date
SignedforandonbehalfofPTHoeghLNG
Lampung
/s/HANSKRISTIANSEN
Signature
HansKristiansen
Name
SeniorProjectManager
Capacity
11/92013
Date
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EX10.18
Schedule1 AmendedandRestatedLease,OperationandMaintenanceAgreement
[InsertcopyoftheAmendedandRestatedLOM]
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EX10.18
Schedule2 IndonesianOwnerGuarantee
Thisdeedismadeon18September2013
Between
(1) HeghLNGHoldingsLtd.,acompanyincorporatedunderthelawsofBermudaandwithitsregisteredofficeatCanons
Court,22VictoriaStreet,HamiltonIIM12,Bermuda(theGuarantor)and
GovernmentRegulationsandhavingitsprincipalofficeatJ1.K.H.ZainulArifinNo.20,Jakarta1140,Indonesia(the
Company)
Recitals
A.
TheCompanyhasenteredintoanamendedandrestatedlease,operationandmaintenanceagreementdated17October2012
(theLOM)withHeghLNGLtd.(theTransferor)andanamendedandrestatedumbrellaagreementdated17October
2012withtheTransferorandPTRekayasaIndustri(theUmbrellaAgreementandtogetherwiththeLOM,theOriginal
Agreements).
B.
UndertheLOM,theTransferoragreestoleasetoCompany,andoperateandmaintain,afloatingstorageandregasification
unitandprocureamooringsysteminconnectionwiththeLampungLNGFloatingStorageandRegasificationFacilities
Project.
C.
UndertheUmbrellaAgreement,theTransferoragreedtoassumejointandseveralliabilityforcertainobligations.
D.
ByanovationagreementinrespectoftheLOM(LOMNovationAgreement),andanovationagreementinrespectofthe
UmbrellaAgreement(UmbrellaNovationAgreement),theTransferorisreleasedfromallitsobligationsandliabilities
andtransfersallofitsrightsundertheLOMtoPTHoeghLNGLampung(theOwner),andtheOwnerassumesthe
Transferorsobligations,liabilitiesandrightsundertheOriginalAgreements.TheOriginalAgreements,asnovatedin
accordancewiththeLOMNovationAgreementandUmbrellaNovationAgreement,shallbereferredtoasthe
Agreements.
E.
TheGuarantorhasagreedtoguaranteetotheCompanythedueandproperperformancebytheOwnerofalltheOwners
Operativeprovisions
1.
Guarantee
Guarantorhereby:
(a)
agreesandguaranteestotheCompany,asanindependentandprimaryobligorandnotonlyassurety,thatiftheOwner
breachesanyoftheGuaranteedObligations,thentheGuarantorshallontheCompanysdemandperformthat
GuaranteedObligationinplaceoftheOwner
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EX10.18
(b) acknowledgesandagreesthatnovariationoforalterationtothetermsoftheGuaranteedObligationsortotheirextent,
natureormethodofperformance,andnoallowanceoftime,waiver,forbearance,forgiveness,indulgence,compromise
orotherdealingunderorinconnectionwiththeAgreementsoranyrightorremedyarisingthereunder,andno
invalidity,illegality,unenforecabilityorirregularityoftheAgreementsorofanyprovisionthereof,andnootheract,
omissionordefaultwhich(butforthisprovision)mighthaveoperatedtorelease,exonerateordischargetheGuarantor
orotherwisereduce,extinguishoradverselyaffectanyliabilityoftheGuarantorunderthetermsofthisdeedshallin
anywayrelease,exonerateordischargetheGuarantorfromanyliabilityunderthetermsofthisdeedorotherwise
reduce,extinguishoradverselyaffectanysuchliability,andtheGuarantorherebywaivesanyrequirementfornoticeto
itofanysuchevent
(c)
confirmsthatithasfullpowerandcapacitytoenterintothisdeedandagreesthatthisdeedshallnotherevocableby
theGuarantor,shallbeacontinuingguarantee,shallbeadditionaltoandnotinsubstitutionforanyrightsorremedies
thattheCompanymayhaveagainsttheOwnerundertheAgreementsoratlaw,shallbeadditionaltoanyother
guaranteeorsecurityfromtimetotimeheldbytheCompany,shallnotbeaffectedbyanyreleaseorwaiverofanysuch
guaranteeorsecurityandshallremaininfullforceandeffectnotwithstandingthewindingup,liquidation,
receivership,administration,voluntaryarrangementorothercompositionwithcreditors(oranyeventequivalentor
analogoustoanyoftheforegoingunderthelawofanyjurisdiction)oftheOwneroriftheOwnerisunabletopayits
debts(asdefinedbysections123(1)and268(1)oftheInsolvencyAct1986,asamended)
(d) agreesthatallsumspayablebytheGuarantorunderthisdeedshallbepaidtotheCompanyinfull,freeofallpresentor
futuretaxes,levies,duties,charges,fees,withholdingsordeductions(togetherreferredtoasDeductions)and,ifthe
GuarantoriscompelledbylawtomakeanyDeduction,theGuarantorwillgrossupthepaymentsothatthenetsum
receivedbytheCompanyisequaltothefullamountwhichtheCompanywouldhavereceivedhadnosuchDeduction
beenmade
(e)
agreesthat,aslongastheOwnerremainsunderanyactualorcontingentliabilityunderthetermsoftheAgreements,it
shallnottakeanysecurityfromtheOwnerinconnectionwiththisdeed(and,iftaken,anysuchsecurityshallbeheld
bytheGuarantorassecurityforitsliabilitytotheCompanyunderthisdeed)ortakeanysteptoenforceanyrightor
claimagainsttheOwnerinrespectofanypaymentmadeunderorliabilityarisingfromorinconnectionwiththisdeed
orexerciseanyrightsasGuarantorincompetitionwiththeCompany
(f)
agreesthattheobligationsoftheGuarantorunderthisdeedandtheOwnerundertheAgreementareindependentand
severalobligations,andaccordinglythattheCompanyshallnotbeobliged,beforeenforcinganyofitsrightsor
remediesunderthisdeed,tocommenceproceedingsortakeanyotheractionagainsttheOwnerorenforceanyother
guaranteeorsecurityfromtimetotimeheldbytheCompanyinrespectoftheGuaranteedObligationsand
(g) agreesthattheCompanyshallbeentitledtoassignanyorallofitsrightsorbenefitsunderthisdeed(whetherornot
accrued)atanytimetoanypersonwhotakesanassignmentofanyoftherightsundertheAgreementsorthebenefit
thereof,subjectmutatismutandistothesameterms.
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2.
EX10.18
Claimsprocedure
(a)
Anydemandunderthisdeedshallbeinwritingandshallbeservedpersonallyorbyfirstclassprepaidpostorbyfax.
Theaddress,faxnumberandattentionforserviceofanydemandupontheGuarantorshallbetheaddress,faxnumber
andattentionstatedinclause2(c)beloworsuchotheraddress,faxnumberorattentionasmayfromtimetotimebe
notifiedinwritingbytheGuarantortotheCompany.
(b) Ademandshallbedeemedtobereceivedinthecaseof:
(i)
(ii)
(iii)
fax,uponthereceiptbythesenderofatransmissionreportfromthedispatchingfaxwhichconfirmsthatallof
thepagescomprisedinthedemandhavebeensuccessfullysenttotheGuarantorsfaxnumber,
providedthat,inthecaseofserviceinaccordancewithclauses2(b)(ii)and2(b)(iii),ifthedateofreceiptofthedemand
isnotabusinessdayinthecountryoftherecipient,orifthedemandisreceivedoutsidethehoursof9.00a.m.to5.00
p.m.,itshallbedeemedtohavebeenreceivedat9.00a.m,onthenextbusinessday.
(c)
HeghLNGAS,Drammensveien134,P.O.Box4Skoyen,NO0212Oslo,Norway
FaxNo.:
+4797557400
Attention: President&CEO
3.
Address:
(a)
NofailureordelaybytheCompanyinexercisinganyrightorremedyshalloperateasawaiver,norshallanysingleor
partialexerciseorwaiverofanyrightorremedyprecludeitsfurtherexerciseortheexerciseofanyotherrightor
remedy.
(b) Eachoftheprovisionsofthisdeedisseverablefromtheothers,andifforanyreasonanysuchprovisionisorbecomes
ineffective,inoperable,invalidorunenforceableitshallbeseveredanddeemeddeletedfromthisdeed,andinsuch
eventtheremainingprovisionsofthisdeedshallcontinuetohavefullforceandeffect.
4.
(a)
ThisdeedshallbegovernedbythelawsoftheEngland.
(b) Anydisputearisingoutoforinconnectionwiththisdeed,includinganyquestionregardingitsexistence,validityor
termination,shallhereferredtoandfinallyresolvedbyarbitrationinSingaporeinaccordancewiththeArbitration
deemedtobeincorporatedbyreferenceinthisclause.
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(c)
EX10.18
TheTribunalshallconsistofthreearbitrators.
(d) ThelanguageofthearbitrationshallbeEnglish.
(e)
Anarbitraltribunalconstitutedunderthisclause4may,unlessconsolidationwouldprejudicetherightsofanyparty,
consolidatearbitrationhereunderwitharbitrationundertheLOMand/ortheUmbrellaAgreementifthearbitral
proceedingsraisecommonquestionsoflaworfact.IftwoormorearbitraltribunalsunderthisdeedortheLOMand/or
theUmbrellaAgreementissuesconsolidationorders,theorderissuedfirstshallprevail.
(f)
Thedecisionofthearbitrationisfinalandbindingontheparties.Nopartymaybringanappealtoanycourtorother
authorityinrelationtothedecisionofthearbitration.Excepttoenforcethedecisionofthearbitration,nopartymay
bringanyactioninanycourtinIndonesiaorelsewhereinrelationtothedispute.
5.
Counterparts
6.
Confidentiality
Eachpartyherebyundertakestomaintaintheconfidentialityofthisdeedandmayonlydisclose(exceptwiththewritten
consentoftheotherparty,suchconsentnottobeunreasonablywithheldordelayed)thisdeedto:
(a)
itsAffiliates(asdefinedintheLOM),itsanditsAffiliatesofficers,managementpersonnel,andfinancial(including
auditingandtaxation),insurance,andlegaladvisorstotheextentreasonablenecessaryforthepurposesofthe
Agreementandthisdeed
(b) PermittedCreditors(asdefinedintheLOM)and
(c)
acompetentcourt,orforthepurposesofanyarbitration,orexpertorotherdisputeresolutionproceedingunderthis
deedortheAgreements,orasmayberequiredbylaworanycompetentlegalorregulatoryauthorityhaving
jurisdictionoverthatparty.
7.
GoverningLanguage
(a)
Language,EmblemandSong,thepartiesagreetotranslatethisdeedintotheIndonesianlanguagewithin90daysasof
thedateofthisdeedoranyotherdateasagreedbetweentheparties.TheIndonesianlanguageagreementshallhavethe
dateofthisdeedasitseffectivedate.SuchIndonesianlanguageversionshallformanintegralandinseparablepartof
theEnglishversion.IntheeventofinconsistenciesordifferencesininterpretationbetweentheEnglish
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EX10.18
andIndonesiantexts,theEnglishversionshallprevailandtherelevantIndonesianversionshallbedeemedtobe
automaticallyamendedtoconformwithandtomaketherelevantIndonesiantextconsistentwiththerelevantEnglish
text.
(b) Furthermore,eachpartyagreesitwillnotciteorinvokeLaw24/2009oranyregulationissuedthereunder,orclaimthat
thefactthisdeedwasexecutedintheEnglishlanguageonly,to:
(i)
defenditsnonperformanceorbreachofitsobligationsunderthisdeedor
(ii)
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EX10.18
SignedforandonbehalfofHeghLNGHoldingsLtd.
/s/RUNEKARLSEN
Signature
RuneKarlsen
Name
SeniorTechnicalManager
Capacity
11/913
Date
SignedforandonbehalfofPTPerushaanGasNegara
(Persero)Tbk
/s/DJOKOSAPUTRO
Signature
DjokoSaputro
Name
DirofTech&Development.
Capacity
18Sept.2013.
Date
12
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EX10.18
NOVATIONAGREEMENTFORAMENDED&RESTATEDLEASE,OPERATION&
Thisagreementismadeon21February2014
Among
Transferor)
(2) PTPGNLNGIndonesia,alimitedliabilitycompanydulyestablishedandexistingunderthelawsoftheRepublicof
IndonesiaandhavingitsregisteredofficeatJl.K.H.ZainulArifinNo.20,Jakarta11140,Indonesia(theTransferee)and
IndonesiaandhavingitsregisteredofficeatJl.JenderalSudirmanKay1,Jakarta10220,Indonesia(theContinuing
Party).
Forthepurposeofthisdeed,theTransferor,theTransfereeandtheContinuingPartymaysometimesindividuallybereferredtoas
aPartyandcollectivelyreferredtoastheParties.
Recitals
A.
TheContinuingPartyandtheTransferorarePartiestoanagreementmadebetweenthempursuanttothenovationagreement
dated18September2013forthenovationoftheamendedandrestatedlease,operationandmaintenanceagreementdated
17October2012,acopyofwhichissetoutinthefirstschedulehereto(theSubjectAgreement).
B.
UndertheSubjectAgreement,theContinuingPartyagreestoleasetotheTransferor,andoperateandmaintain,afloating
storageandregasificationunitandprocureamooringsysteminconnectionwiththeLampungLNGFloatingStorageand
C.
InaccordancewithitsdecreeregardingNovationofContractsandPermitsrelatingtotheLampungLNGProject(the
Decree),theTransferorsBoardofDirectorshasdeterminedthattheTransferorsrightsandobligationsundertheSubject
AgreementshallbecarriedoutbytheTransfereeandtherefore,theTransferorwishesthatitsrightsandobligationsunderthe
SubjectAgreementbenovatedtotheTransferee.
D.
BythisagreementTransferorwishestobereleasedfromallitsobligationsandliabilitiesaridtransfersallofitsrights,
obligationsandliabilitiesundertheSubjectAgreementtotheTransferee,andtheTransfereeassumesTransferors
obligations,liabilitiesandrightsundertheSubjectAgreement.TheContinuingPartyagreestosuchreleaseandassumption.
1
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EX10.18
Operativeprovisions
Interpretation
1.
ExpressionsdefinedintheSubjectAgreementhavethesamemeaninginthisagreementunlessthecontextrequires
otherwise,and:
RestrictedPersonmeansaPersonthatis:(i)listedon,orownedorcontrolledbyaPersonlistedon,oractingonbehalfof
aPersonlistedon,anySanctionsList(ii)notanaturalpersonandislocatedin,incorporatedunderthelawsof,orownedor
(directlyorindirectly)controlledby,oractingonbehalfof,aPersonlocatedinororganizedundertheLawsofacountryor
territorythatisthetargetofcountrywideorterritorywideSanctionsor(iii)otherwiseatargetofSanctions(targetof
SanctionssignifyingapersonwithwhomaUSpersonorothernationalofaSanctionsAuthoritywouldbeprohibitedor
restrictedbySanctionsfromengagingintrade,businessorotheractivities)
Sanctionsmeanstheeconomicsanctionslaws,regulations,embargoesorrestrictivemeasuresadministered,enactedor
enforcedby:(i)theUnitedStatesgovernment(ii)theUnitedNations(iii)theEuropeanUnion(iv)theUnitedKingdom
or(v)therespectivegovernmentalinstitutionsandagenciesofanyoftheforegoing,including,withoutlimitation,the
OfficeofForeignAssetsControloftheUSDepartmentofTreasury(OFAC),theUnitedStatesDepartmentofStateandHer
MajestysTreasury(HMT)(together,theSanctionsAuthorities)and
SanctionsListmeanstheSpeciallyDesignatedNationalsandBlockedPersonslistmaintainedbyOFAC,the
ConsolidatedListofFinancialSanctionsTargetsandtheInvestmentBanListmaintainedbyHMT,oranysimilarlist
maintainedby,orpublicannouncementofSanctionsdesignationmadeby,anyoftheSanctionsAuthorities.
Novation
2.
InconsiderationoftheotherPartiesenteringintotheirrespectiveobligationsunderthisagreement,witheffectonandfrom
theEffectiveDate:
2.1. theContinuingPartyherebyreleasesanddischargestheTransferor(includingwithoutlimitationinrespectofany
breachoftheSubjectAgreementbytheTransferorantecedenttotheEffectiveDate)fromalloftheTransferors
obligationsandliabilitiesunderorinconnectionwiththeSubjectAgreement,andfromallclaimsanddemands
whatsoeverarisingundertheSubjectAgreementonoraftertheEffectiveDateandtheTransferorherebyceasestobea
partytotheSubjectAgreement
2.2. theTransferorherebynovatesallofitsrightsandobligationsundertheSubjectAgreementtotheTransferee(including,
withoutlimitation,inrespectofanybreachbytheContinuingPartyoftheSubjectAgreementantecedenttothe
EffectiveDate),andallobligationsandliabilitiesoftheContinuingPartytotheTransferorundertheSubject
Agreementherebycease
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EX10.18
2.3. theTransfereeherebyassumestheliabilitiesandshallperformtheobligationsfromwhichtheTransferorisreleasedand
dischargedpursuanttoclause2.1ofthisagreement(including,withoutlimitation,inrespectofanybreachofthe
SubjectAgreementbytheTransferorantecedenttotheEffectiveDate)andtobeboundbyitstermsinallrespectsasif
theTransfereehadbeennamedasapartytheretoinplaceoftheTransferorand
2.4. theContinuingPartyherebyagreestoperformtheContinuingPartysobligationsandliabilitiesunderorinconnection
withtheSubjectAgreementsandtobeboundbyitstermsinallrespectsasiftheTransfereehadbeennamedasaparty
thereto,inplaceoftheTransferor.
3.
TheEffectiveDateshallbethedateuponwhicheachofthefollowingconditionshavebeensatisfied:
3.1. aguaranteeandindemnityintheformsetoutinthesecondscheduletothisagreement(theTransferorGuarantee)
hasbeendulyexecutedanddeliveredtotheContinuingParty,infullforceandeffectand
3.2. customarylegalopinionshavebeenissuedinformandsubstancereasonablysatisfactorytotheContinuingPartyand
theagentactingonbehalfofPermittedCreditors(LendersAgent)fromareputableIndonesiancounselrelatingto
thevalidityandenforceabilityoftheTransferorGuaranteeandthepowerandauthorityoftheTransferortoenterinto
andperformtheTransferorGuarantee.
4.
TheTransferorherebyrepresentsandwarrantstotheContinuingPartyonthedateofthisagreementandontheEffective
Datethat(i)itisacorporationdulyincorporatedandvalidlyexistingandingoodstandingunderthelawsofthecountryof
itsincorporationandhasthecorporatepowerandauthoritytoenterintoandperformitsobligationsunderthisagreement
andallnecessarycorporate,shareholderandotheractionhasbeentakentoauthorisetheexecution,deliveryand
performanceofthesameand(ii)thatthisagreementconstituteslegal,validandbindingobligationsapplicabletoitandthe
obligationsareinfullforceandeffectinaccordancewiththeirterms,andthedeliveryandperformancebyTransferorofthis
agreementwillnotcontraveneanylawofanygovernmentalauthorityhavingjurisdictionoverTransferor.
ShareTransfer
5.
WitheffectonandfromtheEffectiveDate,thePartiesagreethat:
5.1. BeforeAcceptance,theTransfereeshallnotceasetobewhollyownedandwhollyControlledbytheTransferor.
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EX10.18
5.2. AfterAcceptance,theTransferorshallnotceasetoControltheTransfereenorceasetoown51percent.ofthe
Transfereesissuedsharecapital,andtheTransferorshall:
(i)
notassign,transfer,disposeofanyshare,orinterestinanyshare,intheTransferee(aShareTransfer):
A.
beforethe30thdayaftertheContinuingPartyhasreceivednoticeoftheShareTransferandtheinformation
requiredunderClause5.3(theObjectionDate)or
B.
if,beforetheObjectionDate,theContinuingPartynotifiestheTransferorthatitobjectstotheShare
TransferinaccordancewiththisClause5,specifyingthereasonforthatobjectionandprovidingreasonable
supportingevidence,whereapplicable(suchnotice,anObjectionNotice)and
(ii)
ensurethatnoshares,orinterestinanyshare,intheTransfereeistradedonasecuritiesexchangethatislocated
inororganisedunderthelawsofacountryorterritorythatisthetargetofcountrywideorterritorywide
Sanctions(aRestrictedExchange)
(iii)
ensurethatnoothershareholderoftheTransferee,fromtimetotime,entersintoaShareTransferwitha
RestrictedPerson,exceptinrespectofsharesthatarelisted(and,followingaShareTransfer,wouldremainlisted)
onarecognisedsecuritiesexchangethatisnotaRestrictedExchange.
5.3. TheTransfereeshall:
(i)
notifytheContinuingPartyof:
A.
anyproposedinitialpublicofferingofitsshares,includingdetailsofthesecuritiesexchangeand
B.
theidentityofanyPersonproposingtoacquirerightsinoroveranyshare,orinterestinanyshare,inthe
Transferee(suchPerson,theAcquirer)otherwisethanbyaninitialpublicofferingand
(ii)
providetotheContinuingPartysuchinformationasPermittedCreditorsrequiretocompletetheirknowyour
customerapprovalsoftheAcquirer,iftheContinuingPartyisentitledtogiveanObjectionNoticeforthe
matterdescribedinClause5.5(vi).
5.4. TheContinuingPartymayonlygivetheTransferoranObjectionNoticeinrespectofaninitialpublicofferingofthe
TransfereessharesforthemattersdescribedinClauses5.5(i),5.5(ii),5.5(iii),5.5(iv)or5.5(vii)oriftherelevant
securitiesexchangeisaRestrictedExchange.
5.5. SubjecttoClause5.4,theContinuingPartymayonlygivetheTransferoranObjectionNoticeif:
(i)
anyPersonotherthantheTransferorwouldControltheTransferee,oriftheTransferorwouldownlessthan
51percent.oftheTransfereesissuedsharecapital
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EX10.18
(ii)
theapplicablelawsofanymembercountryoftheOrganisationforEconomicCooperationandDevelopment,
theEuropeanUnionortheAssociationofSoutheastAsianNations(oranysuccessorofsuchorganisations)
prevent(a)theContinuingPartyfrombeingpartytoorperformingtheSubjectAgreementor(b)HeghLNG
HoldingsLtdfromprovidingorperformingtheguaranteeoftheContinuingPartysobligationsunderthe
SubjectAgreementprovidedthat,togetherwiththeObjectionNotice,theContinuingPartyprovidesthe
Transferorwithacopyofalegalopinionfromareputablecounsel,andreasonablebackgroundinformation,in
respectofsuchapplicablelawsandtheireffect
(iii)
abreachorrepudiationoftheSubjectAgreement,thisagreementortheTransferorGuaranteebytheTransferoror
theTransferee(asthecasemaybe)iscontinuingunremediedand/orunwaived
(iv)
theContinuingPartyhasnotreceivedalegalopinion,informandsubstancereasonablysatisfactorytothe
ContinuingPartyandtheLendersAgentfromareputableIndonesiancounsel,confirmingthevalidityand
enforceabilityoftheTransferorGuaranteeaftertheShareTransfer,andthepowerandauthorityoftheTransferor
toenterintoandperformthoseagreements(andallotherinstrumentstogiveeffecttothesame)
(v)
theAcquirerhasnotsatisfiedtheContinuingPartysinternalcorporategovernancerequirementsrelatingtoanti
bribery,moneylaunderingorterrorism
(vi)
theLendersAgenthasnotconfirmedbywrittennoticetotheContinuingPartythatPermittedCreditorshave
obtainedallinternalknowyourcustomerapprovalsrequiredfortheAcquireror
(vii) theContinuingPartywouldincuranyadditionaldirectcost,Taxorotherliability,asaresultofsuchShare
Transferforwhichtheyhavenotbeencompensatedinfull.
6.
TheSubjectAgreementisherebyamendedwitheffectonandfromtheEffectiveDateasfollows:
6.1. theaggregateprincipalamountinUSdollarsoftheCompanyLoCshallbeequivalenttotheproductof90multiplied
bytheFullHireRate
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EX10.18
6.2. itshallbeanEventofCompanysDefaultif:
(i)
theTransferorceasestoControltheTransfereeorceasestoown51percentoftheTransfereesissuedshare
capitalor
(ii)
aShareTransferoccursotherthaninaccordancewithClause5,andsuchbreach(notarisingfromamatter
describedinClause6.2(i))isnotremediedwithin30daysaftertheTransferorbecomingawareofsuchbreach
6.3. itshallbeanEventofCompanysDefaultifanyofthefollowingoccurs:
(i)
theTransferorGuaranteebecomesandremainsunenforceableorceasestobevalidandbindinginaccordance
withitstermsortheTransferorterminatedtheTransferorGuaranteebecauseIndonesianlaworadirectionbya
GovernmentalAuthoritysorequired,andtheTransfereefailstoprocureavalid,bindingandenforceable
guaranteeandindemnityfromTransferorinformandsubstancesatisfactorytotheContinuingPartyandLenders
Agent(eachactingreasonably)guaranteeingtheTransfereesperformanceoftheSubjectAgreement,beforethe
20thdayaftertheTransferorhasreceivednoticefromtheContinuingParty(whichreplacementguaranteeshall
thereafterbecometheTransferorGuaranteeforthepurposesofthisagreementandtheSubjectAgreement)
(ii)
theTransferorGuaranteeisforanyreasonterminated(otherthaniftheTransferorterminatedbecauseIndonesian
laworadirectionbyaGovernmentalAuthoritysorequired,orifterminationwaswiththeContinuingPartys
writtenagreement),repudiated,orrescindedor
(iii)
anInsolvencyEventiscontinuingwithrespecttoTransferorandhascontinuedunremediedfor21daysafterthe
TransferorhasreceivednoticefromtheContinuingParty.
7.
TheTransferorshallbejointlyandseverallyliablewiththeTransfereefortheTransfereespaymentobligationsunderthe
SubjectAgreementifanyoftheeventsdescribedinClause6.3occur,witheffectonandfromthedatethatanysuchevent
occurs.
Notices
8.
ForthepurposesoftheSubjectAgreement,theTransfereesaddressfornoticesshallbeasfollows:
Address: PTPGNLNGIndonesia,EquityTower,16thFloorSCBDLot9,Jl.JenderalSudirmanKav.5253,Jakarta
12190Indonesia
FaxNo:
622129037444
Addressedforthepersonalattentionof:PresidentDirector
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EX10.18
Counterparts
9.
ThisagreementmaybeexecutedinanynumberofcounterpartsandbythePartiestoitonseparatecounterparts,eachof
whichshallbeanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrument.
10. ThisagreementshallbegovernedbyandconstruedinaccordancewiththelawsofRepublicofIndonesia.
11. Anydisputearisingoutoforinconnectionwiththeagreement,includinganyquestionregardingitsexistence,validityor
termination,shallbereferredtoandfinallyresolvedbyarbitrationinSingaporeinaccordancewiththeArbitrationRulesof
theSingaporeInternationalArbitrationCentre(SIACRules)forthetimebeinginforce,whichrulesaredeemedtobe
incorporatedbyreferenceinthisClause.Thetribunalshallconsistofthreearbitrators.Thelanguageofthearbitrationshall
beEnglish.
12. ItisherebyagreedthatanarbitraltribunalconstitutedundertheSubjectAgreementmayconsolidateanarbitration
hereunder.
13. EachPartyagreesthatitwillnotinstituteanycourtproceedingsarisingoutoforinconnectionwiththisagreement(and,in
theeventofconsolidation,theSubjectAgreement)exceptonlytoenforceinanycourthavingjurisdictionanyaward
renderedbythearbitraltribunal.
14. DecisionsofthearbitraltribunalshallbebindinginfinalinstanceupontheParties.ThePartiesexpresslyagreein
accordancewithLawNo.30of1999onArbitrationandAlternativeDisputeResolution(theArbitrationLaw)thatin
decidingthedisagreementordispute,thearbitratorsshallbeboundbystrictrulesoflaw,andmaynotpurporttodecidethe
sameexaequoetbono.ThePartiesfurtheragreetowaiveanyIndonesianlawsandregulations,decreesorpolicieshaving
theforceoflawthatwouldotherwisegivearighttoappealanyarbitrationdecisionoraward,andtotheextentapplicable,
assuchthatinconformitywithArticle60ofArbitrationLaw,thereshallbenoappealand/orcessationtoanycourtoflaw
fromthedecisionofthearbitratorsandthePartiesshallnotchallengeorresisttheenforcementactiontakenbythePartyin
whosefavourthedecisionofthearbitratorswasgiven.
15. ThePartiesexpresslyagreetowaivetheapplicabilityofArticle48.1oftheArbitrationLawassuchthatthemandateofthe
arbitratorsdulyconstitutedinaccordancewiththetermsofthisLeaseshallremainineffectuntilafinalarbitralawardhas
beenissuedbythearbitrators.
GoverningLanguage
16. ThisagreementisexecutedintheEnglishlanguage.IncompliancewithLawNo.24of2009regardingNationalFlag,
Language,EmblemandSong,thePartiesagreetotranslatethisagreementintotheIndonesianlanguageandexecutethe
Indonesianlanguageversion
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EX10.18
ofthisagreementwithin90daysasofthedateofthisagreementoranyotherdateasagreedamongtheParties.The
Indonesianlanguageagreementshallhavethedateofthisagreementasitseffectivedate.SuchIndonesianlanguageversion
shallformanintegralandinseparablepartoftheEnglishversion.Intheeventofinconsistenciesordifferencesin
interpretationbetweentheEnglishandIndonesiantexts,therelevantIndonesianversionshallbedeemedtobe
automaticallyamendedtoconformwithandtomaketherelevantIndonesiantextconsistentwiththerelevantEnglishtext.
17. Furthermore,eachPartyagreesitwillnotciteorinvokeLaw24/2009oranyregulationissuedthereunder,orclaimthatthe
factthisagreementwasexecutedintheEnglishlanguageonly,to:
17.1.defenditsnonperformanceorbreachofitsobligationsunderthisagreementor
17.2.allegethatthisagreementisagainstpublicpolicyorotherwisedoesnotconstituteitslegal,validandbinding
EachoftheundersignedherebyundertakesthatithasreadthisagreementandunderstandsitsEnglishcontents,andthatthis
agreementhasbeenenteredintofreelyandwithoutduressandthatindependentlegaladvicehasbeengiven.
Setiappenandatangandenganinimenyatakanbahwaiatelahmembacaperjanjianinidanmemahamiisinyayangdibuatdalam
bahasaInggris,danbahwaperjanjianinitelahditandatanganisecarasukarelatanpaadanyapaksaandanbahwakepadanyatelah
diberikannasihatolehpenasihathukumindependen.
(Persero)Tbk
SignedforandonbehalfofPTHoeghLNGLampung
/s/DJOKOSAPUTRO
Signature
DjokoSaputro
Name
Dir.OfTech.&Dev.
Capacity
20Feb.2014
Date
/s/JAKOBSTAMPE
Signature
JakobStampe
Name
PresidentDirector
Capacity
Date
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EX10.18
SignedforandonbehalfofPTPGNLNG
Indonesia
/s/NISISETYOBUDI
Signature
NisiSetyobudi
Name
PresidentDirector
Capacity
February2014
Date
264/273
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EX10.18
Schedule1 AmendedandRestatedLease,OperationandMaintenanceAgreement
10
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EX10.18
Schedule2 TransferorGuarantee
Thisdeedismadeon[]
Byandbetween:
(1) PTPerusahaanGasNegara(Persero)Tbk,astateownedpubliclylimitedliabilitycompanydulyestablishedandexisting
underthelawsoftheRepublicofIndonesiaandhavingitsregisteredofficeatJalanK.H.ZainulArifinNo.20,Jakarta
11140,Indonesia(theGuarantor)and
Indonesiaandhavingitsregisteredofficeat51JenderalSudirmanKay1,Jakarta10220,Indonesia(Owner).
Forthepurposeofthisdeed,theGuarantorandtheOwnermaysometimesindividuallybereferredtoasaPartyand
collectivelyreferredtoastheParties.
Recitals:
A.
TheGuarantorandtheOwnerarePartiestoanagreementmadebetweenthempursuanttoanovationagreementdated
18September2013forthenovationoftheamendedandrestatedagreementoftheoriginallease,operationandmaintenance
agreementdated17October2012(theLOM)betweentheGuarantorandHeghLNGLtd.
B.
UndertheLOM,theOwneragreestoleasetotheGuarantor,andoperateandmaintain,afloatingstoragearidregasification
unitandprocureamooringsysteminconnectionwiththeLampungLNGFloatingStorageandRegasificationFacilities
Project.
C.
Byanovationagreementdated[](theNovationAgreement)theGuarantorisreleasedfromallitsobligationsand
liabilitiesandtransfersallofitsrightsundertheLOMtoPTPGNLNGIndonesia(theTransferee),andtheTransferee
assumestheGuarantorsobligations,liabilitiesandrightsundertheLOM.
D.
ByanovationagreemententeredintobytheParties(UmbrellaNovationAgreement)theTransfereebecamepartyto,and
assumedcertainobligations,liabilitiesandrightsoftheGuarantor,andtheOwnerbecamepartytoandassumedobligations,
liabilitiesandrightsofHeghLNGLtd,undertheamendedandrestatedumbrellaagreementdated17October2012
betweentheGuarantor,PTRekayasaIndustriandHeghLNGLtd(UmbrellaAgreement).
E.
TheLOM(asnovatedandamendedinaccordancewiththeNovationAgreement),theNovationAgreement,theUmbrella
NovationAgreementandtheUmbrellaAgreement,shallbereferredtoastheAgreements.
F.
TheGuarantorhasagreedtoguaranteetotheOwnerthedueandproperperformancebyTransfereeofalltheTransferees
11
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EX10.18
Operativeprovisions
1.
Guarantee
1.1 WitheffectonandfromtheEffectiveDate(asdefinedundertheNovationAgreement),theGuarantorhereby:
(a)
agreesandguaranteestotheOwner,asanindependentandprimaryobligorandnotonlyassurety,thatiftheTransferee
breachesanyoftheGuaranteedObligations,thentheGuarantorshallontheOwnersdemandperformthatGuaranteed
ObligationinplaceoftheTransfereeandshallindemnifyandsaveharmlesstheOwnerfromandagainstanyandall
losses,damages,expenses,liabilities,claims,costsorproceedingswhichtheOwnermaysufferorincurbyreasonof
thatbreachoranyoftheGuaranteedObligationsbeingorbecomingtotallyorpartiallyunenforceablebyreasonof
illegality,incapacity,lackorexceedingofpowers,ineffectivenessofexecutionoranyothermatterprovidedthatthe
GuarantorsliabilityunderthisdeedshallbenogreaterthantheTransfereesliabilityundertheAgreements(orwhatits
liabilitywouldhavebeenhadtherelevantobligationsbeenfullyenforceable)
(b) acknowledgesandagreesthatnovariationoforalterationtothetermsoftheGuaranteedObligationsortotheirextent,
natureormethodofperformance,andnoallowanceoftime,waiver,forbearance,forgiveness,indulgence,compromise
orotherdealingunderorinconnectionwiththeAgreementsoranyrightorremedyarisingthereunder,andno
invalidity,illegality,unenforceabilityorirregularityoftheAgreementsorofanyprovisionthereof,andnootheract,
omissionordefaultwhich(butforthisprovision)mighthaveoperatedtorelease,exonerateordischargetheGuarantor
orotherwisereduce,extinguishoradverselyaffectanyliabilityoftheGuarantorunderthetermsofthisdeedshallin
anywayrelease,exonerateordischargetheGuarantorfromanyliabilityunderthetermsofthisdeedorotherwise
reduce,extinguishoradverselyaffectanysuchliability,andtheGuarantorherebywaivesanyrequirementfornoticeto
itofanysuchevent
(c)
agreesthatthisdeedshallnotberevocablebytheGuarantor,shallbeacontinuingguarantee,shallbeadditionalto
andnotinsubstitutionforanyrightsorremediesthattheOwnermayhaveagainsttheTransfereeundertheAgreements
oratlaw,shallbeadditionaltoanyotherguaranteeorsecurityfromtimetotimeheldbytheOwner,shallnotbe
affectedbyanyreleaseorwaiverofanysuchguaranteeorsecurityandshallremaininfullforceandeffect
notwithstandingthewindingup,liquidation,receivership,administration,voluntaryarrangementorothercomposition
withcreditors(oranyeventequivalentoranalogoustoanyoftheforegoingunderthelawofanyjurisdiction)ofthe
TransfereeoriftheTransfereeisunabletopayitsdebts(asdefinedinIndonesianBankruptcyandSuspensionofDebt
PaymentObligationLaw37of2004,asamended)
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EX10.18
(d) acknowledgesandagreesthatitsliabilitiesandobligationsunderthisdeedshallnotbelimitedtoitsproportionof
shareholdingintheTransferee
(e)
agreesthatallsumspayablebytheGuarantorunderthisdeedshallbepaidtotheOwnerinfull,freeofallpresentor
futuretaxes,levies,duties,charges,fees,withholdingsordeductions(togetherreferredtoasDeductions)and,ifthe
GuarantoriscompelledbylawtomakeanyDeduction,theGuarantorwillgrossupthepaymentsothatthenetsum
receivedbytheOwnerisequaltothefullamountwhichtheOwnerwouldhavereceivedhadnosuchDeductionbeen
made
(f)
agreesthat,aslongastheTransfereeremainsunderanyactualorcontingentliabilityunderthetermsofthe
Agreements,itshallnottakeanysecurityfromtheTransfereeinconnectionwiththisdeed(and,iftaken,anysuch
securityshallbeheldbytheGuarantorassecurityforitsliabilitytotheOwnerunderthisdeed)ortakeanystepto
enforceanyrightorclaimagainsttheTransfereeinrespectofanypaymentmadeunderorliabilityarisingfromorin
connectionwiththisdeedorexerciseanyrightsasGuarantorincompetitionwiththeOwner
(g) agreesthattheobligationsoftheGuarantorunderthisdeedandtheTransfereeundertheAgreementsareindependent
andseveralobligations,andaccordinglythattheOwnershallnotbeobliged,beforeenforcinganyofitsrightsor
remediesunderthisdeed,tocommenceproceedingsortakeanyotheractionagainsttheTransfereeorenforceanyother
guaranteeorsecurityfromtimetotimeheldbytheOwnerinrespectoftheGuaranteedObligations
(h) agreesthattheOwnershallbeentitledtoassignanyorallofitsrightsorbenefitsunderthisdeed(whetherornot
accrued)atanytimetoanypersonwhotakesanassignmentofanyoftherightsundertheAgreementsorthebenefit
thereof,subjectmutatismutandistothesameterms.
(i)
waivesinfavouroftheOwneranyandallofitsrights,protection,privilegesanddefencesprovidedbylawtoa
guarantorandinparticulartheprovisionsinArticle1430,1831(butonlytotheextentitrequirestheOwnertoexhaust
theirremediesagainsttheGuarantor),1837,1843,1347through1850oftheIndonesianCivilCode(KitabUndang
UndangHukumPerdata)and
(j)
waivesanyrighttoandagreesnottomakeanyclaimorsetofforKompensasiasprovidedinArticles1425through
1435oftheIndonesianCivilCodeandagreesnottomakeanycounterclaiminanyactionbroughtbytheOwnerto
enforceitsrightshereunder.
1.2 TheGuarantorconfirmsthat,onthedatehereofandontheEffectiveDate:(i)itisacorporationdulyincorporatedand
validlyexistingandingoodstandingunderthelawsofthecountryofitsincorporationandhasthecorporatepowerand
authoritytoenterintoandperformitsobligationsunderthisdeedandallnecessarycorporate,shareholderandotheraction
hasbeentakentoauthorisetheexecution,deliveryandperformanceofthesameand(ii)thatthisdeedconstituteslegal,
validandbindingobligationsapplicableto
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EX10.18
itandtheobligationsareinfullforceandeffectinaccordancewiththeirterms,andthedeliveryandperformanceby
GuarantorofthisdeedwillnotcontraveneanylawofanygovernmentalauthorityhavingjurisdictionoverGuarantor.
2.
Claimsprocedure
(a)
Anydemandunderthisdeedshallbeinwritingandshallbeservedpersonallyorbyfirstclassprepaidpostorbyfax.
Theaddress,faxnumberandattentionforserviceofanydemandupontheGuarantorshallbetheaddress,faxnumber
andattentionstatedinClause2(c)beloworsuchotheraddress,faxnumberorattentionasmayfromtimetotimebe
notifiedinwritingbytheGuarantortotheOwner.
(b) Ademandshallbedeemedtobereceivedinthecaseof:
(i)
(ii)
(iii)
fax,uponthereceiptbythesenderofatransmissionreportfromthedispatchingfaxwhichconfirmsthatallof
thepagescomprisedinthedemandhavebeensuccessfullysenttotheGuarantorsfaxnumber,
providedthat,inthecaseofserviceinaccordancewithClauses2(b)(ii)and2(b)(iii),ifthedateofreceiptofthedemand
isnotabusinessdayinthecountryoftherecipient,orifthedemandisreceivedoutsidethehoursof9.00a.m.to5.00
p.m.,itshallbedeemedtohavebeenreceivedat9.00a.m.onthenextbusinessday.
(c)
Address:
FaxNo.:
JalanK.H.ZainulArifinNo.20,Jakarta11140,Indonesia
+62216333080/63854601
Attention: KepalaDivisiPengembanganBisnisdanPengendalianPortofolio
3.
(a)
NofailureordelaybytheOwnerinexercisinganyrightorremedyshalloperateasawaiver,norshallanysingleor
partialexerciseorwaiverofanyrightorremedyprecludeitsfurtherexerciseortheexerciseofanyotherrightor
remedy.
(b) Eachoftheprovisionsofthisdeedisseverablefromtheothers,andifforanyreasonanysuchprovisionisorbecomes
ineffective,inoperable,invalidorunenforceableitshallbeseveredanddeemeddeletedfromthisdeed,andinsuch
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EX10.18
eventtheremainingprovisionsofthisdeedshallcontinuetohavefullforceandeffect.Whiletheremainingprovisions
ofthisdeedcontinuestohavefullforceandeffect,thePartiesagreetoreplacesuchineffective,inoperable,invalidor
unenforceableprovisionswitheffective,operable,validorenforceableprovisionswhichcomeascloseaspossibleto
theoriginalprovisionsasregardstoitscommercialintent.
4.
(a)
ThisdeedshallbegovernedbythelawsoftheRepublicofIndonesia.
(b) Anydisputearisingoutoforinconnectionwiththisdeed,includinganyquestionregardingitsexistence,validityor
termination,shallbereferredtoandfinallyresolvedbyarbitrationinSingaporeinaccordancewiththeArbitration
deemedtobeincorporatedbyreferenceinthisclause.
(c)
Thetribunalshallconsistofthreearbitrators.
(d) ThelanguageofthearbitrationshallbeEnglish.
(e)
Anarbitraltribunalconstitutedunderthisclause4may,unlessconsolidationwouldprejudicetherightsofanyParty,
consolidatearbitrationhereunderwitharbitrationunderanyoftheAgreementsand/ortheNovationAgreementifthe
arbitralproceedingsraisecommonquestionsoflaworfact.Iftwoormorearbitraltribunalsunderthisdeedoranyof
theAgreementsortheNovationAgreementissuesconsolidationorders,theorderissuedfirstshallprevail.
(f)
EachPartyagreesthatitwillnotinstituteanycourtproceedingsarisingoutoforinconnectionwiththisdeed(and,in
theeventofconsolidation,theAgreementsand/ortheNovationAgreement)exceptonlytoenforceinanycourthaving
jurisdictionanyawardrenderedbythearbitraltribunal.
(g) ThedecisionsofthearbitrationshallbebindinginfinalinstanceuponthePartieshereto.ThePartiesheretoexpressly
agreeinaccordancewithLawNo.30of1999onArbitrationandAlternativeDisputeResolution(theArbitration
Law)thatindecidingthedisagreementordispute,thearbitratorsshallbeboundbystrictrulesoflaw,andmaynot
purporttodecidethesameexaequoetbono.ThePartiesfurtheragreetowaiveanyIndonesianlawsandregulations,
decreesorpolicieshavingtheforceoflawthatwouldotherwisegivearighttoappealanyarbitrationdecisionor
award,andtotheextentapplicable,assuchthatinconformitywithArticle60ofArbitrationLaw,thereshallbeno
appealand/orcessationtoanycourtoflawfromthedecisionofthearbitratorsandthePartiesshallnotchallengeor
resisttheenforcementactiontakenbythePartyinwhosefavourthedecisionofthearbitratorswasgiven.
(h) ThePartiesheretoexpresslyagreetowaivetheapplicabilityofArticle48.1oftheArbitrationLawassuchthatthe
mandateofthearbitratorsdulyconstitutedinaccordancewiththetermsofthisdeedshallremainineffectuntilafinal
arbitralawardhasbeenissuedbythearbitrators.
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5.
EX10.18
Counterparts
6.
Confidentiality
EachPartyherebyundertakestomaintaintheconfidentialityofthisdeedandmayonlydisclose(exceptwiththewritten
consentoftheotherParty,suchconsentnottobeunreasonablywithheldordelayed)thisdeedto:
(a)
itsAffiliates(asdefinedintheLOM),itsanditsAffiliatesofficers,managementpersonnel,andfinancial(including
auditingandtaxation),insurance,andlegaladvisorstotheextentreasonablenecessaryforthepurposesofthe
Agreementsandthisdeed
(b) PermittedCreditors(asdefinedintheLOM)and
(c)
acompetentcourt,orforthepurposesofanyarbitration,orexpertorotherdisputeresolutionproceedingunderthis
deedortheAgreements,orasmayberequiredbylaworanycompetentlegalorregulatoryauthorityhaving
jurisdictionoverthatParty.
7.
GoverningLanguage
(a)
Language,EmblemandSong,thePartiesagreetotranslatethisdeedintotheIndonesianlanguageandexecutethe
Indonesianlanguageversionofthisdeedwithin90daysasofthedateofthisdeedoranyotherdateasagreedamong
theParties.TheIndonesianlanguagedeedshallhavethedateofthisdeedasitseffectivedate.SuchIndonesian
languageversionshallformanintegralandinseparablepartoftheEnglishversion.Intheeventofinconsistenciesor
differencesininterpretationbetweentheEnglishandIndonesiantexts,therelevantIndonesianversionshallbedeemed
tobeautomaticallyamendedtoconformwithandtomaketherelevantIndonesiantextconsistentwiththerelevant
Englishtext.
(b) Furthermore,eachPartyagreesitwillnotciteorinvokeLaw24/2009oranyregulationissuedthereunder,orclaimthat
thefactthisdeedwasexecutedintheEnglishlanguageonly,to:
(i)
defenditsnonperformanceorbreachofitsobligationsunderthisdeedor
(ii)
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8.
EX10.18
Amendment
Anyamendment,supplementormodificationofortoanyprovisionofthisdeed,anywaiverofanyprovisionofthisdeed,
andanyconsenttoanydeparturebytheOwnerortheGuarantorfromthetermsofanyprovisionofthisdeed,shallbe
effective(i)onlyifitismadeorgiveninwritingandsignedbythePartiesand(ii)onlyinthespecificinstanceandforthe
specificpurposeforwhichmadeorgiven.Further,anyamendment,supplementormodificationtotheAgreementswhich
increases(ormayincrease)theTransfereesobligationsorliabilitiesthereundershallrequirethepriorwrittenconsentofthe
Guarantor(nottobeunreasonablywithheldordelayed),exceptthatnoconsentshallberequiredinrespectofanAlteration
(asdefinedintheLOM)oranyamendment,supplementormodificationrequiredunderandinaccordancewiththe
provisionsoftheLOM(includingasrequiredbyanExpertsdeterminationundertheLOM).
9.
WaiverofImmunity
TheGuarantor(tothefullestextentpermittedbylaw)irrevocablyandunconditionally:
(a)
agreesnottoclaimanyimmunityfromproceedingsbroughtagainstitbytheotherPartyinrelationtothisdeed,andto
ensurethatnosuchclaimismadeonitsbehalf
(b) waivesallrightsofimmunityinrespectofitoritsassetsand
(c)
consentsgenerallyinrespectofsuchproceedingstothegivingofreliefortheissueofanyprocessinconnectionwith
suchproceedings.
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EX10.18
SignedforandonbehalfofPTHoeghLNGLampung
Signature
Name
Capacity
Date
(Persero)Tbk
Signature
Name
Capacity
Date
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