(b) The Second Closing Consideration will be satisfied by the Company on the Second
Closing Date as follows:
(i) by the assumption of 50% of the obligations of the shareholders of ACAS to
fund ACAS by a combination of equity and/or debt as agreed in a
shareholders’ agreement dated 21 October 2010 (including the provision of
sufficient refinancing for the full takeout financing of the Vessel as procured by
ACAS) (the “ACAS Equity and Debt Obligations”); and
(ii) by the payment of US$25 million in cash (the “First Tranche Cash Payment”)
and an additional US$25 million in cash (the “Second Tranche Cash
Payment”) to AKSO.
The payment of the Second Tranche Cash Payment is deferred and shall be payable
in four equal annual instalments commencing from the first anniversary following the
Second Closing Date. A 2.5% interest shall accrue on the outstanding balance of the
Second Tranche Cash Payment from the Second Closing Date, and accrued interest
is payable annually on the relevant instalment payment dates.
For further details on the First Closing and Second Closing, please refer to Section 2.1.5 of
this Circular.
2.1.4 Conditions Precedent
Completion is conditional upon, inter alia, the following conditions having been fulfilled (or
waived):
(a) Conditions precedent to First Closing
(i) the Vessel Contract being duly executed and remaining valid, binding and
enforceable as at the First Closing Date, and there being no material
amendments to the Vessel Contract since 23 March 2010;
(ii) the entry into of a binding license agreement with Intellectual Property
Holdings AS for the non-exclusive royalty-free usage by AMC of the “Aker”
name solely in the name “Aker Marine Contractors” for a period of 18 months
after the First Closing Date;
(iii) the warranties of the Sellers as set out in the Share Purchase Agreement
(the “Sellers’Warranties”) being true and correct in all material respects as
of the First Closing Date;
(iv) there having been no material breach of any covenants and agreements
required to be performed or caused to be performed by the Sellers under the
Share Purchase Agreement on or before the First Closing Date;
(v) if required, the Norwegian Competition Authority (no. “Konkurransetilsynet”)
shall have cleared, whether explicitly or implicitly, or have cleared, on
conditions reasonably acceptable to the Company, the transactions
contemplated by the Share Purchase Agreement;