Adriatic Chemical KS: Invitation To Subscribe For Partnership Shares in

Invitation to subscribe for partnership shares in
Adriatic Chemical KS
Investment amount: Paid in capital: Uncalled capital:
EUR 18,020,000 EUR 4,820,000 EUR 5,500,000
Total leverage: Expected IRR:
Approx. 74 % 20 %
Subscription period: 9 March 09:00 hrs to 16 March 16:00 hrs.

Minimum subscription: paid in equity: uncalled equity: EUR 103,200 (1%) EUR 48,200 (1%) EUR 55,000 (1%)
Commercial Manager :
Bergshav Management AS
Arranger:
Orkla Finans Kapitalforvaltning AS
Information Memorandum
Contents
STATEMENT FROM THE ARRANGER 5
STATEMENT FROM THE BAREBOAT CHARTERER DINAMARIN D.O.O. AND THE GUARANTOR DIOKI D.D. 6 STATEMENT FROM LEGAL COUNSEL 1 2
2.1 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 2.3 2.4 2.5
6 7 9
9 9 9 10 11 11 11 11 12 12 13 13
DEFINITIONS SUMMARY
INTRODUCTION IMPORTANT INVESTOR INFORMATION PROJECT HIGHLIGHTS BACKGROUND THE INVESTMENT LEVERAGE LIQUIDITY FEES - REMUNERATION SUBSCRIPTION PERIOD THE OFFER THE ARRANGER - ORKLA FINANS KAPITALFORVALTNING AS RISKS
3
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10
RISKS
INTRODUCTION LEGISLATIVE ENVIRONMENT INCLUDING TAXATION INTEREST RATE AND CURRENCY RISK LEVERAGE LIQUIDITY POTENTIAL CONFLICT OF INTEREST MARKET RISK RESIDUAL RISK BAREBOAT CHARTERERS PERFORMANCE ENVIRONMENTAL RISK
13
13 13 14 14 14 15 15 15 15 16
THE INVESTMENT
16
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4.1 4.2 4.3
THE VESSELS VESSEL REGISTRATION, CONDITION, UPGRADES AND FLAG DELIVERY/ TIME SCHEDULE
16 17 18
5
5.1 5.2 5.3 5.4 5.5 5.6
THE BAREBOAT CHARTERER DINAMARIN

ORGANISATION HISTORY BUSINESS MODEL PRODUCTION CAPACITIES EXPORT FINANCIALS DIOKI - GUARANTOR
18
19 20 20 21 21 21
6
6.1
INA
FINANCIALS INA
22
24
7 8
8.1 8.2 8.2.1 8.2.2 8.2.3 8.2.4 8.2.5 8.2.6 8.2.7 8.2.8 8.2.9 8.2.10
THE COMMERCIAL MANAGER STRUCTURE AND FINANCING

CORPORATE STRUCTURE FINANCING CAPITAL REQUIREMENTS CAPITAL STRUCTURE DEBT FINANCING INCOME OPERATIONAL EXPENSES (OPEX) EXPECTED IRR DIVIDEND CAPACITY PURCHASE OPTIONS RESIDUAL VALUE SENSITIVITY CURRENCY
24 25
25 26 26 27 27 28 29 29 30 32 32 34
9
9.1 9.2 9.3
AGREEMENTS ENGLISH SUMMARY

LIMITED PARTNERSHIP AGREEMENT THE MANDATE AGREEMENT BETWEEN ADRIATIC CHEMICAL KS AND THE ARRANGER THE CORPORATE MANAGEMENT AGREEMENT
34
34 35 35
10 11
11.1 11.2 11.3 11.4
THE MARKET THE OFFER

INTRODUCTION SUBSCRIPTION AND SUBSCRIPTION PERIOD ALLOTMENT CRITERIA PAYMENT AND DELIVERY OF PARTNERSHIP SHARES
37 54
54 54 54 54
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12 13
13.1 13.2 13.3 13.4 13.5
TAX APPENDIX
DETAILED CASH FLOW PROJECTIONS THE LIMITED PARTNERSHIP AGREEMENT THE MANDATE AGREEMENT WITH THE ARRANGER THE CORPORATE MANAGEMENT AGREEMENT THE COMMERCIAL MANAGEMENT AGREEMENT
55 59
59 60 68 71 74
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Statement from the Arranger

This Information Memorandum has been prepared by Orkla Finans Kapitalforvaltning AS (Arranger), having endeavoured to present a consistent and correct picture of a possible investment opportunity (The Project or The Company). The information contained herein has been obtained from sources believed to be reliable and in good faith. The Arranger can however not guarantee or be held financially or legally responsible for the accuracy, completeness or correctness of the information contained in this Information Memorandum. Information disclosed in this Information Memorandum can not be regarded as valid beyond the date of this Information Memorandum. All investments in shipping involve risk and could lead to losses. A general description of project-risks is mentioned in this Information Memorandum chapter 3. This description must not be considered as complete, and all investors must undertake their own investigation as to the correctness of the information in this Information Memorandum, and must rely solely on their own examinations of the legal, financial, foreign exchange exposure, and other consequences of any investment in The Project. Included in this Information Memorandum are various forward-looking-statements, including statements regarding the Arrangers or others intent, opinions, belief or current expectations of The Project with its management with respect to, among other things, (i) The Companys target market, (ii) evaluation of The Companys markets, competition and competitive position, (iii) trends and market movements which may be expressed or implied by financial or other information or statements herein. Such forward-looking statements are not, and can not be considered, as guarantees of future performance and involve both known and unknown risks, uncertainties and other factors that may cause the actual results, performance and outcomes to be materially different from any future results, performance and outcomes expressed or implied by such forward-looking-statements. Such factors include, but are not limited to, the risk factors described in this Information Memorandum. Recipients of this Information Memorandum are not allowed to distribute the document except with the prior written consent from the Arranger. This Information Memorandum is not to be distributed to investors in the US, UK or other jurisdiction where it would be contrary to relevant securities law. Investors that are not receiving advice from the Arranger on a regular basis, are recommended not to pursue this investment opportunity. The Information Memorandum is only being made available to parties on the understanding that the information contained herein will be treated as confidential information. The Information Memorandum may not be photocopied, reproduced or distributed to any other person except with written approval of the Arranger. Shares in The Project can only be obtained by using the Order Form at the end of this Information Memorandum.
Oslo, 08 March 2009 Orkla Finans Kapitalforvaltning AS
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Statement from the Bareboat Charterer Dinamarin d.o.o. and the Guarantor Dioki d.d.
Dinamarin d.o.o. and Dioki d.d. hereby confirm that to the best of their knowledge the information contained in this Information Memorandum regarding the Charterer and INA is in accordance with the facts and contains no omissions likely to affect the overall content of the Information Memorandum
Zagreb 08 March 2009 Dinamarin d.o.o./ Dioki d.d.
Statement from legal counsel

We have assisted the Arranger in the preparation of this Information Memorandum and based on the information provided, we are of the opinion that the material herein represents a fair and balanced view of the legal issues covered in the Information Memorandum. This statement is though limited to elements regulated by Norwegian law and does not cover commercial, economical or accounting related issues in the Information Memorandum.
Oslo 08 March 2009 Vogt & Wiig AS
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1 Definitions
Arranger Bareboat Charter Orkla Finans Kapitalforvaltning AS, org.nr 981 263 790 Contract for the chartering of vessels on a bareboat basis without crew or provisions. The Bareboat Charterer is responsible for all expenses related to operation and maintenance of the vessel Dinamarin d.o.o.
Bareboat Charterer Corporate Management Agreement
Agreement between the Company and Orkla Finans Kapitalforvaltning AS regarding management of the Company
Commercial Management Agreement
Agreement between the Company and Bergshav Management AS regarding commercial management of the Vessels A shipping contract by which the ship-owner agrees to carry a specified amount of cargo for a certain period for a charterer against a minimum payment Dinamarin d.o.o. The wholly owned subsidiary of the Guarantor., which will be the counterpart in the Bareboat Charters Det Norske Veritas The currency of Euro Adriatic Chemical AS, a company under incorporation, to be fully owned by Bergshav Tankers AS Dioki d.d. A Croatian stocklisted petrochemical production company and the owner of Dinamarin d.o.o. INA d.d. is a Croatian, partially state owned oil company, which will enter into a Contract of Affreightment with Dinamarin d.o.o. for the Vessels This information memorandum with all appendices Internal Rate of Return Investors in Adriatic Chemical KS, other than the General Partner
Contract of Affreightment
Dinamarin
DNV EUR General Partner
Guarantor
INA
Information Memorandum IRR Limited Partners
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Mandate Agreement
Agreement between the Company and the Arranger regarding structuring and arrangement of the Project and this Information Memorandum Net asset value Norwegian kroner Orkla Finans Kapitalforvaltning AS Adriatic Chemical KS (also referred to as the Company or the KS), a company under incorporation, to be owned by the General Partner and the Limited Partners Shares in Adriatic Chemical KS under incorporation The total costs of the Project, including purchase of the Vessels, start up costs, legal and bank fee expenses and working capital Single Purpose Company a company duly incorporated in accordance with Norwegian legislation and with a single purpose; to own and run the ships The arrangement of Adriatic Chemical KS that shall invest in 2 chemical tankers Part of the companys issued capital, which has not yet been called or paid for by the shareholders Brvig Mistral or Vedrey Ydrehall. Together the Vessels
NAV NOK Orkla Finans Owner
Partnership Shares Project Price
SPC
The Project
Uncalled Capital
Vessel
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2 Summary
2.1 Introduction
This summary is meant to give potential investors a short overview of the investment opportunity in Adriatic Chemical KS, herein referred to as the Company or the Project. This summary must not be considered as exhaustive and any investors that intend to invest in The Project must read the complete Information Memorandum. In this Information Memorandum, certain words and expressions are capitalised and should be read and understood in compliance with the definitions in chapter 1.
2.2 Important investor information

2.2.1

Project highlights
The Project involves the acquisition of two, modern IMO II Chemical tankers, of approximately 3,500 dwt., built 2004 and 2006. Total investment of EUR 18,020,000 Paid in Equity of EUR 4,820,000 Uncalled capital of EUR 5,500,000 The Vessels will be purchased from distressed sellers, on an as is basis, and are in agreement with the Bareboat Charterer, scheduled to be upgraded to a generally good condition according to DNV class, at the time and expense of the Bareboat Charterer.
Long term Bareboat Charter to Dinamarin, a wholly owned subsidiary of the stock listed chemical production company, Dioki of Croatia. The Bareboat Charterer is fully guaranteed by Dioki. The Bareboat Charterer will, directly or indirectly, invest up to 50% of the equity in Adriatic Chemical KS.
Dinamarin will enter into a 4+2 years Contract of Affreightment with partially state owned oil company INA. Strong and experienced Commercial Manager, Bergshav Management AS. Bergshav will invest 20% of the equity in Adriatic Chemical KS. Approximately 74% initial mortgage financing from Nordea Bank of the Project Price. Rapid repayment of debt compared to market standards Strong financial projections expected IRR of 20% Bareboat Charterer has underlying purchase options in year 4, 5 and 6, with 50/50 profit split with Owner. Conservative residual value estimates Vessels are depreciated over 20 years. Expected annual dividend capacity between 14-19% per annum, based on paid in equity.
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2.2.2
Background
Orkla Finans Kapitalforvaltning AS, in collaboration with Bergshav Management AS, hereby invite investors to invest in Adriatic Chemical KS. The Project involves the acquisition of two modern, IMO II Chemical tankers, which will be fixed on a 6 year Bareboat Charter to Dinamarin, a wholly owned subsidiary of the Croatian company Dioki. Dioki is a chemical production company producing polymers and petrochemicals for both domestic use and export to European markets. Dioki was founded in 1995 and is stock listed on the Zagreb stock exchange with a market value of HRK (Kuna) 505 million (equivalent to approximately NOK 606 million) as of February 3rd 2009. Dioki is one of Croatias largest exporters and exports approximately 80% of their annual production volumes. Dioki, through its subsidiary Dinamarin, will in turn enter into a 4+2-year Contract of Affreightment with the partially state owned Croatian oil company INA. INA will utilise the Vessels in transporting oil and chemical products between its production and storage facilities along the coast of Croatia. INA is owned approximately 44% by the Republic of Croatia and approximately 47% by the Hungarian oil company MOL Rt. A recently announced shareholder agreement between INA and MOL leads to that MOL will consolidate INA into its financial figures going forward, but ownership remains for the time being unchanged. INA is involved in a number of business areas, including international oil and gas exploration and production, oil and gas processing, oil and oil products distribution. INA is stock listed on the Zagreb stock exchange with a market value as of February 3rd of HRK (Kuna) 11,5 Billion (equivalent to approximately NOK 13,8 billion).
Transaction Structure
Bergshav Tankers AS (Commercial Manager) Adriatic Chemical AS (General Partner)
Dioki d.d (Guarantor)
100%
Investors
100 %
Up to 50%
10%
10%
30%
Dinamarin d.o.o BB Charterer
6 yrs BBCP
Arranger
Orkla Finans
4 + 2 yrs CoA/TC INA (COA Charterer)
Buyer
Lender
Bank
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2.2.3
The investment
Adriatic Chemical will invest in two Marine Line coated, IMO II chemical tankers, built 2004 and 2006. The total Project Price of the Vessels is EUR 18.02 million. The Vessels will be employed under the Bareboat Charter by a subsidiary of Dioki, Dinamarin. The Bareboat Charters have fixed day rates for 6 years and is fully guaranteed by Dioki. The ownership of the Vessels will be organised as a Norwegian registered KS company with Bergshav Management AS as commercial manager. Bergshav will in addition participate with 20% of the equity, where 10% will be invested through the General Partner. Dinamarin (as Bareboat Charterer), or an affiliated company of Dioki (the Guarantor) will invest up to 50% in the KS company. External investors are invited to subscribe for the remaining part of the equity. Both Bergshav and Dioki will participate on equal terms as all other investors.
2.2.4
Leverage
Adriatic Chemical KS has received a firm offer for financing of the Vessels from Nordea Bank. The loan will provide long-term financing for approximately 74% of the Project Price. The loan has a repayment profile of approximately 8 years. The term of the loan is 6 years. The financing is on competitive market terms. For further details, please refer to clause 8.2. Leverage (directly and indirectly) implies higher risk in The Project. See clause 3.4 for a more thorough description.
2.2.5
Liquidity
The Partnership Shares in Adriatic Chemical KS will, save for the requirement that any buyer shall be approved by the Bank and the board of the Partnership, be freely transferable, but liquidity may be limited. The Investors must be aware that any transaction will be subject to supply and demand of the relevant Partnership Shares at any given point in time and that no warranties can or will be given with regards to the liquidity, nor the pricing of the Partnership Shares. It is a prerequisite that any new investors enter into the Partnership Agreement (Kommanditt-selskapsavtale) for Adriatic Chemical KS with addendums. It is important to emphasize that Orkla Finans Kapitalforvaltning AS at present does not act as a market maker and does not intend to in the future, but can be of assistance to facilitate a transaction of shares, subject to there being a willing buyer and willing seller.
2.2.6
Fees - remuneration
The following fees will be charged the investors (indirectly by invoicing the company) : Fees
Arrangement Fee
Calculation basis and due date of payment

Non-recurrent fee equivalent to 1,5 % based on the total purchase price of the Vessels. Included in this amount is an upfront fee for the Commercial Manager of EUR 75,000. The fee is denominated in EUR and is due for payment on the day of closing the transaction.
Receiver
Orkla Finans Kapitalforvalting AS Bergshav Management AS
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Broker Commission Bare-boat agreement
Non-recurrent fee equivalent to 1,5 % based on the total purchase price of the Vessels. The fee is denominated in EUR and is due for payment on the day of closing. Annual administration fee equivalent to EUR 20,000 per Vessel per annum (adjusted for inflation) for the commercial management of the Vessels. Annual administration fee of EUR 19,250 per vessel per annum (adjusted for inflation). The Corporate Management Fee is payable in advance on a semi-annual basis in accordance with the corporate Management agreement, ref Appendix 13.4.
Shipbroker C. Clausen & Company
Commercial management fee
Bergshav Management AS
Corporate Management fee
Orkla Finans Kapitalforvaltning AS, management department.
All fees and remuneration described above are net fees exclusive VAT and other taxes. Potential VAT or other public taxes that may occur are payable in addition to the amounts mentioned above.
2.2.7
Subscription period
The subscription period will be from 9th of March at 09.00 hours and to 16th of March at 16.00 hours. The Arranger reserves its right to extend the subscription period or cancel this period at an earlier point in time at its own discretion. However, under no circumstances will the subscription period be cancelled within the first 24 twenty four - hours of the subscription period. The minimum subscription is 1%.
Adriatic Chemical KS Paid in Equity Uncalled Capital Total Committed Equity 100% 4,820,000 5,500,000 10,320,000 50% 2,410,000 2,750,000 5,160,000 1% 48,200 55,000 103,200
EUR EUR EUR
Please note that the Bareboat Charterer or an affiliated company to the Dioki Group will participate with up to 50% of the shares in the Company. In addition, the Commercial Manager, Bergshav Management AS (through the General Partner and an affiliated company) will participate with 20% of the shares in the Company, with 10% through the general partner Adriatic Chemical AS and 10% as a direct investment in Adriatic Chemical KS. The subscription form is attached in the Appendix of this Information Memorandum.
2.3 The offer

The Arranger hereby invites investors to subscribe for Partnership Shares in Adriatic Chemical KS under incorporation (The Company), a single purpose company to be incorporated in accordance with Norwegian legislation. Adriatic Chemical KS has entered into an agreement with the purpose to buy the Vessels Brvig Mistral (built 2004) and Vedrey Ydrehall (built 2006), which will be employed on a 6 year Bareboat Charter with Dinamarin. The Bareboat Charterer and the Bareboat Charter is fully guaranteed by Dioki. The offer implies that the investors are given an opportunity to order Partnership Shares in the Company, each with a paid in equity amount EUR 48,200. Subscription can only be made in whole percentages where the Minimum Subscription is one (1) partnership share in Adriatic Chemical KS, which will commit the subscriber to a total committed capital of EUR 103,200 per 1 %. The completion of this transaction is subject to reaching final agreement and approval of all transaction documents, including Memorandum of Agreements for the purchase of the Vessels, Bareboat Charters and Contracts of Affreightments, bank financing and other related documents by the board of Adriatic Chemical KS. Should the transaction for any reason not be completed, the
Adriatic Chemical KS Page 12 of 76
Arranger reserves its right to cancel the transaction at its own discretion.
2.4 The Arranger - Orkla Finans Kapitalforvaltning AS

Orkla Finans Kapitalforvaltning AS is a Norwegian securities company with a leading position within alternative investments such as shipping, real estate, private equity, securitization and hedge funds. Orkla Finans Kapitalforvaltning holds a licence from the Financial Supervisory Authority of Norway (norsk:Kredittilsynet) to act in accordance with the Securities Trading Act clause 2-1, (1) number 1- 6 which implies receiving customers orders, facilitating such orders, trading of financial instruments, discretionary investment management, investment advisory service and public offering. Orkla Finans Kapitalforvaltning AS constitutes about 100 persons with offices in all the major cities in Norway. Orkla Finans Kapitalforvaltning AS is a wholly-owned subsidiary of Orkla ASA. www.orkla.com
2.5 Risks
Investors must be aware that all investments in shipping involve risk and could lead to losses. The value of the Partnership Shares can fluctuate with the supply and demand within the shipping industry, global economic growth, rate levels and exchange levels of NOK versus EUR. Please note that the investors responsibility for Uncalled Capital will be nominated in NOK and fixed in EUR on the future date of payment. Due to Norwegian corporate legislation there is a requirement for a nomination of liability in NOK, which means that the investors liability for Uncalled Capital will be equal to a NOK amount fixed in EUR on the date of future payment. There are no guarantees for future returns or dividend yields. Historical returns are not a reliable indicator of future return. A number of more specific risk factors are described in chapter 3.
3 Risks
3.1 Introduction
Investing in Adriatic Chemical KS is subject to different risk factors. The investor may lose all or part of the investment, including the Uncalled Capital. Investors who neither can nor want to incur such risk should not enter into Adriatic Chemical KS. The value of the investment is influenced by different factors. In particular, the following risk factors should be carefully considered before investing. The list below should not be regarded as exhaustive.
3.2 Legislative environment including taxation

Changes in rules and regulations relating to the individual investors tax position may occur, and such changes may lead to reduced profitability in the Project. Similarly the Project is exposed to changes in environmental and commercial legislation such as new class or other legislative changes which could enforce substantial improvement work, structural work or purchase of new equipment on/for the Vessels. The effect of such changes, or the interpretation of such changes, may impact Adriatic Chemical KS and the expected return negatively.
3.3 Interest rate and currency risk

Since a major part of the Project is financed by a bank loan, interest payments are a major expense for Adriatic Chemical KS. Changes in the interest rate level could affect the Project both positively and negatively. It is anticipated that the interest rate exposure will be mitigated by fixing the interest rate for the entire charter period prior to delivery of the Vessels. The purchase price, the loan and the income from the Bareboat charter will be denominated in EUR. The investors capital commitment both paid in and Uncalled Capital is in EUR, while due to the Norwegian corporate legislation there is a mandatory demand to register the companys capital structure denominated in NOK in the Norwegian Register of Business Enterprises. The investors are therefore exposed to changes in the exchange level between EUR and NOK. Changes in the exchange level between EUR and NOK can affect the Project both positively and negatively. Investors will have to make their own decision whether or not they want to enter into hedging arrangements for their exposure between NOK and EUR.
3.4 Leverage
Adriatic Chemical KS aim to leverage its purchase of the Vessels with approximately 74 % of the Vessels Project Price. This kind of leveraging can improve the return on equity, but simultaneously implies higher risk for the investors. The total debt to asset ratio will vary with the net asset value of the Vessels. All potential investors are strongly advised not to leverage their equity investment in the Project, since this will imply that the total leverage will exceed justifiable levels. Should investors leverage this investment, it can result in negative return from day one. The loan agreement will contain certain clauses regarding the market value of the Vessels compared to the loan outstanding at any time. If the market value of the Vessels falls dramatically due to circumstances in the shipping market, this could potentially trigger a breach of the minimum value covenant. In such a case, Adriatic Chemical KS may consider calling on Uncalled Capital or make additional repayments on the loan. This could potentially influence the overall return and dividend yield in the project.
3.5 Liquidity
An investment in Adriatic Chemical KS is a long term investment. Even though the Partnership Shares in Adriatic Chemical KS will be transferable, the liquidity may be limited. The Investors must be aware that any transaction will be subject to supply and demand of the relevant Partnership Shares at any given point in time and that no warranties can or will be given with regards to the liquidity of the Partnership Shares, nor the pricing. A transaction of the Partnership Shares requires board approval, and credit approval by the Bank, of potential buyers of the Partnership Shares due to the residual liability. It is a prerequisite that any new investors enter into the Partnership Agreement (Kommanditt-selskapsavtale) for Adriatic Chemical KS with Addendums. It is important to emphasize that Orkla Finans Kapitalforvaltning AS does not act as a market maker, but can be of assistance to facilitate a transaction of shares given that there is a willing buyer and a willing seller.
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3.6 Potential conflict of interest

The Arranger is acting as broker on behalf of the sellers of the Vessels and will for this receive a sales commission equivalent to 1,5% of the sales price of the Vessels. This sales commission is payable by the sellers and is included in the sales price of the Vessels of EUR 8,1 million and EUR 8,5 million.
3.7 Market risk

Shipping markets are cyclical and have historically been exposed to major fluctuations in rates and values, mainly driven by changes in world economic growth and changes in the supply of vessels from the construction yards around the world. The growth in industrial production and development of world trade, is together with the newbuilding prices for ships and the balance between supply and demand, some of the most important drivers for shipping rates and values. Historically, these fluctuations have resulted in large variations in both revenues and ship values, latest observed in the recent rise and fall in values of dry-bulk vessels during the last two years. Market risk in shipping cannot be totally eliminated. However, it can to some extent be reduced by entering into long-term contracts based on fixed daily charter rates, with solid counterparts, typically with a tenor of five to ten years. This particular project is based on a six year Bareboat charter, meaning that the Bareboat Charterer pays for all expenses related to the operation of the vessel such as crewing, insurances, maintenance etc. This creates a predictable income stream, which limits operational risk in the project, but does not completely eliminate it, as it is of vital importance that the contracted maintenance of the Vessels is carried out according to plan by the Bareboat Charterer.
3.8 Residual risk

It must be appreciated that forecasting a future value is subject to analysis of historical values and interpretations. Such forward-looking views are subjective and investors should consider this accordingly. The actual values of the Vessels may turn out to be lower than what has been assumed. This could impact the Projects return negatively. Market values are normally affected by factors such as; general shipping activity worldwide, net growth in the supply of vessels, the cost of building new vessels, changes in demand for various types and sizes of vessels, age limitations, changes in charter rates, political changes related to regulatory framework, technological advances and the world economy in general. An assessment of the residual value in this Project is described more thoroughly in clause 8.2.6 in this Information Memorandum.
3.9 Bareboat Charterers performance

The project assumes that the Bareboat Charterer will pay the Bareboat Charter hire as agreed according to the Bareboat Charter. Should the Bareboat Charterer fail to pay the hire as agreed then this could have a negative impact on the Project and the expected return. The Bareboat Charter is of Hell and High Water content with the Bareboat Charterer being responsible for all expenses, including but not limited to maintenance, operational expenses, insurances, licensing, registration and taxes relating to the possession and use of the Vessels. The Bareboat Charters will be based on the standard format Barecon 2001.
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The Bareboat Charterer will pledge their shares in Adriatic Chemical KS as security for its commitments, including any payment default, under the Bareboat Charter.
3.10
Environmental risk
The shipping industry represents a major threat to the environment as a consequence of polluting potential. The responsibility for an owner of a vessel must be regarded as a potential risk in accordance with the international recognized principle polluter pays. A worst case scenario would be an environmental disaster like Exxon Valdez and Erica incidents in 1989 and 1999. The polluter pays principle implies that the Company as an owner could be responsible for any pollution caused by the Vessels. It is the Company and the General Partner (which is a limited company) that is responsible for any potential claims as a consequence of a pollution incident, under norwegian law. The Company will be insured against pollution liability on normal market terms. As long as the Vessels do no operate in US waters, the liability of the Limited Partners will be limited to their contributed capital and their committed, but unpaid capital, both of which are regulated in the Partnership Agreement.
4 The Investment
4.1 The Vessels
The Company has entered into an agreement to acquire two, modern, IMO II chemical tankers, built 2004 and 2006, for a total project cost of EUR 18,02 million. The Vessels are standard IMO II chemical tankers, i.e. they are equipped to carry petrochemical products, petroleum distillates and easy chemicals. The Vessels have 10 separate cargo tanks with 10/11 segregations, meaning a number of different products can potentially be carried during the same journey. The Vessels were built at Yilmaz Gemi Shipyard and Yildrim Shipyard in Turkey. The names of the Vessels will be changed after delivery.
GENERAL INFORMATION Vessel Name: Hull: Type: Year built: DIMENSIONS Dead weight LOA LBP Beam 3 500 t 92.86 m 86.65 m 14.10 m TBA (M/T Brvig Mistral) Double hull IMO II Product / Chem Aug 2004
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TECHNICAL Tank coating: Service speed: No of cargo tanks: Cargo Capacity: Segregations: Bow thruster: Cargo pumps: Main engine: Hull: Marineline 12.0 knots 10 (5 P&S) + 1 slop 4,433 cu.m. 11 1 x 240 kW Brunvoll 11 x 300 m3/h MAN 6L 27 Double Hull
GENERAL INFORMATION Vessel Name: Hull Type Year built Dead weight TBA (M/T Vedrey Ydrehall) Double hull IMO II Product / Chem. tanker July 2006 3 537 t
DIMENSIONS LOA LBP Beam 92.86 m 86.65 m 14.10 m
TECHNICAL Service speed (loaded) 13.5 knots Tank coating: No of cargo tanks: Cargo Capacity: Segregations Bow thruster Cargo pumps Main engine: Hull: Marineline 10 (5 P&S) 4,208 cu.m. 10 1 x 350 kW 10 x 150 m3/h Deepwell MAK 6M 25 Double Hull
4.2 Vessel registration, condition, upgrades and flag

The Vessels have been inspected by the Bareboat Charterer and found to be in acceptable condition. In addition, the Croatian Ship Registry and INA has approved the Vessels. However, the inspection revealed need for certain immediate upgrades, which will be carried out by the Bareboat Charterer immediately after delivery and bring the Vessels back to good condition, as defined by the requirements under the classing society, Det norske Veritas. The Bareboat Charterer has estimated the total cost of such upgrades to be in the region of EUR 350-400,000 per Vessel. All costs related to such upgrades and additional purchase of spare parts will be borne and executed by the Bareboat Charterer and will not be the responsibility of Adriatic Chemical KS. It is important to note that the Vessels are on-hire 365 days per year, even if they are undergoing repair work in a yard.
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Following such upgrades, the Vessels will be subject to a survey by an internationally recognised surveyor, in order to confirm that the Vessels have been upgraded according to plan after delivery. The Bareboat Charterer is responsible that such upgrades are done according to the agreement. Adriatic Chemical KS will in addition perform regular inspections of the Vessels in order to check that regular maintenance is performed according to the agreement. The Vessels will be registered in the Croatian ship registry, fly the Croatian flag and be classed by Det norske Veritas. Ships that fly the Croatian flag follow international rules and regulations and are subject to the International Arrest Convention of 1952. According to the Croatian Constitution, ratified international conventions are an integral part of domestic legislation with higher power than domestic laws.
4.3 Delivery/ Time schedule

The Vessels are planned for delivery from the sellers in March 2009 in accordance with the BareBoat Charter and the INA contract.
5 The Bareboat Charterer Dinamarin

Upon delivery the Vessels will be employed on a hell and high water Bareboat Charter to the Dioki group, where the company Dinamarin will be the counterpart in the Bareboat Charters. Dinamarin is a newly formed subsidiary in the Dioki group, where all marine activites will be concentrated going forwards. All commitments of Dinamarin related to the Bareboat Charters are fully guaranteed by Dioki. Dioki is a Croatian chemical production company producing polymers and petrochemicals for both domestic use and export to European markets. Dioki was founded in 1995 and is stock listed in Zagreb with a market value of HRK (Kuna) 505 million (equivalent to approx. NOK 606 million) as of February 3rd 2009.
Page 18 of 76
5.1 Organisation
The Dioki Group is organised as follows:
Dioki Holding AG (Switzerland)
Dioki d.d (Croatia)
Diokiplastica d.o.o (Croatia)
Adria Oil s.p.a. (Italy)
Kijac Nekretnine d.d (Croatia)
DINAPetrokemilja d.d (Croatia)
Dinamarin d.o.o. (Croatia)
Dioki d.d. The main company in the Dioki group, itself a parent company, but also the company owning the production facility in the Zitnjak industrial area in Zagreb. This facility was originally founded in 1978 and is producing Monomers: ethylene from 1982 based on a license from KTI (90.000t/g). The company was operating under the name INA Polymeri from 1995-1999 and has since 1999 been operating under the name Dioki. The company employs approximately 570 people. Kijac Nekretnine d.d. The company is a real estate company in Omisalj owning land at the Krk Island and carrying out tourist activities. DINA-Petrokemilja d.d. DINA-Petrokemilja d.d. is a production company with a large petrochemical facility in Omisalj at the KrK Island. This facility is the second of Dioki's two production sites, and is producing low density polyethylene (DINALEN) (70.000 t/g), starting back in 1984 with a license from Dow Chemical. It employs approximately 350 people and operated under the name of API before 2005. Dina has established a company in relation to the planned LNG terminal facility at KrK Island, expected to be in operation from 2014 and established by 8 foreign and Croatian partners in the energy sector, including INA.
Page 19 of 76 Photo of Diokis terminal in Omisalj, Croatia
Adria Oil s.p.a. The company originally was founded by INA in 1969 as an Italian company based in Milan engaged in the trading of petrochemical raw materials and products. IN 2005, the company came under full ownership and control by Dioki. Diokiplastica d.o.o. Located in Zagreb, the company performs trading and technological support in polymers. The company also trade polymer products, for example polyethylene films. Dinamarin d.o.o. A newly formed entity where Dioki will concentrate its marine activities and over time build up its own crewing and technical management services. Dinamarin will be the counterpart in the Bareboat charter party, however Dioki will be the ultimate guarantor under the Bareboat Charter and guarantee all commitments of Dinamarin. As this is a newly established company, no financial history is yet available.
5.2 History
Dioki was founded on 17 July 1995 as a merger between INA-OKI d.d. of Zagreb, DINA d.d. of Omialj and INA-Naftaplin's Ethylene Production Unit of Zagreb. OKI - Organic Petrochemical Company was founded in 1959, and it was the first producer of petrochemicals and plastics in the country. DINA was established as a joint-venture of INA and the Dow Chemical Company to be acquired by INA in the 1980s. INA-Naftaplin's Ethylene Production Unit was founded in 1982. Until the end of 1996 the Company had been a member of the INA-Group; then INA transferred it to the State Agency for Deposit Insurance and Bank Rehabilitation (DAB). In the process of voucher privatization in 1998, a 51% stake in the company was transferred to privatization and investment funds (PIFs). Since 29 November 1999 , the company has been operating under the name Dioki. On 1 February 2003, the state owned company separated its operations on Krk Island to establish two companies, i.e. Adria procesna industrija dioniko drutvo (API) and Kijac nekretnine d.d. (Kijac). In October 2004 API was privatized and publicly listed, and DIOKI Holding AG, headquartered in Switzerland, became the majority owner. In the privatization process Dioki acquired Kemikalije d.o.o. and thus the Zagreb site was fully integrated - from tank farm areas to final products. Dioki has been listed on the Zagreb Stock Exchange, Croatia since 2004.
5.3 Business model

The company's basic activity is the production of polymers and petrochemicals. Polymers are typically used in production of plastics, thin film, household products etc. Dioki currently produces the following products : Low density polyethylene (LDPE OKITEN and LDPE DINALEN) a thermoplastic made from oil. Main usage areas are manufacturing of various containers, dispensing bottles, wash bottles, tubing, plastic bags for computer components, and various moulded laboratory equipment. Its most common use is in plastic bags. General purpose polystyrene (GPPS DOKI POLISTIREN) and High impact polystyrene (HIPS DOKI POLISTIREN) is widely used in packaging materials, padding materials, building and insulation blocks, ceilings and polystyrene sheets.
Page 20 of 76
Expandable polystyrene (EPS OKIROL-E) is produced as a foam and widely used in the building industry as insulation material, such as in structural insulated panel building systems and non-weight bearing architectural structures. Ethylene - Approximately 80% of ethylene used in the United States and Europe is used to create ethylene oxide, ethylene dichloride, and polyethylene. In smaller quantities, ethylene is used as an anaesthetic agent (in an 85% ethylene/15% oxygen ratio), to hasten fruit ripening, as well as a welding gas. Ethylene oxide is a key raw material in the production of surfactants and detergents. It is also used to manufacture ethylene glycols, which are in turn used in packaging and textiles, and to make glycol ether solvents. The primary use of polyethylene is in film applications for packaging, carrier bags and trash liners. Other applications include injection moulding, pipe extrusion, wire and cable sheathing and insulation, as well as extrusion coating of paper and cardboard. Styrene monomer is used principally in polystyrene for packaging and insulation, as well as in styrene butadiene rubber for tires and footwear.
5.4 Production Capacities

Dioki's annual production capacities are 278 300 tonnes through its production facilities in Zagreb and Omisalj, Croatia. The company has the following production capacities, by product: Low Density Polyethylene (LDPE OKITEN): Low Density Polyethylene (LDPE DINALEN): General purpose polystyrene : Polystyrene colour concentrates: Expandable polystyrene (EPS OKIROL -E): Ethylene: 50 000 tonnes 70 000 tonnes 50 000 tonnes 3 300 tonnes 15 000 tonnes 90 000 tonnes
5.5 Export
Dioki is one of the largest exporters in Croatia; at present, the company exports 80% of its production volume. A long export tradition and the fact that Diokis products are readily marketable on the European markets prove their quality and competitiveness
5.6 Financials Dioki - Guarantor

In HRK (Kuna) thousands Balance Sheet Current Assets Cash Q3 2008 491,265 19,827 2007 422,018 21,665 2006 354,451 10,949 Q3 2008 914,519 36,132 2007 611,697 34,566 2006 483,985 17,291 Dioki Dioki Group
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Non-Current Assets Total Assets Total Equity
1332,633 1,824,166 1,040,458
1,224,653 1,673,485 1,041,444
1,202,581 1,673,485 1,002,664
1,131,205 2,049,256 706,521
1,013,076 1,664,488 733,759
992,423 1,493,699 751,844
Short term liabilities Long term debt Total Equity and liabilities
485,655 205,254 1,824,166
505,763 126,278 1,673,485
394,270 176,247 1,573,181
872,288 311,025 2,049,256
753,616 177,113 1,664,488
561,476 180,379 1,493,699
In
HR
(Kuna) Q3 2008 1,307,229 30,761 21,497
Dioki 2007 1,592,913 27,557 57,960 2006 1,424,449 27,354 (6,154) Q3 2008 1,411,399 36,323 -456
Dioki Group 2007 2,347,674 32,370 11,070 2006 2,173,111 32,298 (27,317)
thousands Profit and Loss Revenue Other Income Operating Profit
Net Financial Items
(22,550)
(17,885)
(12,347)
(28,856)
(25,553)
(16,591)
Net profit after tax
-1,052
40,075
(18,501)
(30,422)
(16,750)
(46,313)
Note: The exchange rate between HRK and NOK was 1,20 as of February 2, 2009
6 INA
Dinamarin will enter into a Contract of Affreightment with the INA Group for both Vessels for a period of 4+2 years. The transaction is structured as a Contract of Affreightment, meaning Dinamarin will provide vessels for INA for a certain amount of cargo each year, against a fixed compensation. The agreement with INA will provide sufficient annual income to cover the underlying rate in the Bareboat charter with Adriatic Chemical KS. INA is a medium-sized European oil company with a leading role in the oil industry in Croatia and a significant role in the region, that is, in the areas of oil and gas exploration and production, oil processing, and gas, oil and oil products distribution. INA-(Industrija nafte dioniko drutvo) is owned by the Hungarian oil company MOL Rt (Rated BB+ by S&P and owns 47,155 percent), the Republic of Croatia (which owns 44,836 percent) and institutional and private investors (which owns 8,009 percent). The company is stock listed on the Zagreb stock
exchange. On January 30th 2009, the Croatian Government and MOL Rt entered into a new shareholder agreement that will give MOL management control over the Croatian oil and gas company INA, and fully consolidate its financials by third quarter 2009. The market capitalisation of MOL Rt was as of February 6th approximately EUR 3,5 billion. The consolidated market capitalisation of INA and MOL is estimated to approximately NOK 45 billion.
More detailed, the product areas of INA are as follows: exploration for and exploitation of oil and gas deposits, primarily onshore and offshore within Croatia; other licence interests are held in Angola, Egypt, Syria and Namibia; importation of natural gas and the sale of imported and domestically produced natural gas to industrial consumers and municipal gas distributors; refining and production of oil products through refineries located at Rijeka (Urinj) and Sisak, and the Rijeka (Mlaka) and Zagreb lubricants plants; distribution of fuels and associated products through a chain of some 415 retail outlets and terminals currently in operation throughout Croatia, including 42 retail outlets in neighbouring countries; trading in crude oil and petroleum products; service activities incidental to on-shore and off-shore oil extraction through its drilling, workover and other oilfield services subsidiary Crosco d.o.o. service activities related to oil and gas pipeline construction, construction and maintenance of processing plants and other services provided by subsidiary STSI d.o.o. manufacturing and marketing of lubricants, industrial greases and related products carried out by Maziva Zagreb d.o.o. filling and distribution of LPG (bottles, small bulks, automotive gas) by PROplin d.o.o. operation and management of INAs holiday homes, hotels and apartment villages carried out by HOSTIN d.o.o. Zagreb.
INA will utilise the Vessels for moving oil products and chemicals between its various refinery- and storage facilities along the coast of Croatia throughout the entire charter period.
Page 23 of 76
6.1 Financials INA

In HRK millions Balance Sheet Q3 2008 Q3 2007 2007
Current Assets of which cash was Non-Current Assets Total Assets Total Equity Short term liabilities Long term liabilities Total Equity and liabilities
9,808 387 18,441 28,249 13,620 8,817 5,812 28,249
7,542 629 16,183 23,725 13,618 5,354 4,753 23,725
7,919 720 16,997 24,916 13,643 6,502 4,771 24,916
In HRK millions Profit & Loss Net sales revenue EBITDA Operating Profit Net Financial gain Net Income Operating Cash Flow Q3 2008 8,729 719 197 (751) (441) (600) Q3 2007 6,759 718 391 159 431 1,103 9 mths 2008 22,272 2,437 890 (448) 355 (408) 9 mths 2007 17,956 2,022 879 71 727 1,247
Note: The exchange rate between HRK and NOK was 1,20 as of February 2, 2009
7 The Commercial Manager

Bergshav Management AS will be the Commercial Manager for the project and responsible for monitoring the Vessels under the Bareboat Charter, including checking that maintenance is performed under the contract and being responsible for technical inspections of the Vessels. Bergshav Tankers AS, an affiliate of the Commercial Manager, will invest 20% in Adriatic Chemical KS, whereof 10% through the General Partner and 10% as a limited partner. Bergshav Management AS is an integrated shipping company with its total resources dedicated to chartering and operation, technical management, project work and finance. Long-term closeness and devotion to shipping will ensure stability and thereby reduce risk to the Vessels' owners. Such return
is secured by the highest level of human competence and expertise in all areas of operation. Bergshav Management's Headquarters is in Grimstad, Norway. The Bergshav family's involvement in shipping dates back to 1772 when the sailing ship "Fortuna" was acquired. In modern times, Mr. J.M. Ugland, grandfather of the present Bergshav owner, established himself in 1930 as a shipowner through the acquisition of a steam tanker from Anglo Saxon Petroleum Co. By such acquisition, AS Uglands Rederi was founded. Throughout the next 60 years, the company prospered considerably and by the end of the 1980's owned a sizeable fleet of car carriers, tankers, bulk carriers, specialized offshore loading vessels as well as a repair yard. In 1989, Bergshav Management AS was formed through a de-merger of AS Uglands Rederi. Along with the changes in international shipping, the fleet has varied considerably both in number and in tonnes deadweight and has ranged from small product tankers to VLCC size. In 1991 the Company expanded its activities by offering management services to external shipping companies. The first venture was taking over the management functions for 15 vessels (VLCC, Suezmax, and handysize dry bulk vessels) from the Oslo-based company Norman International A/S. Furthermore, in 1992 Bergshav took over the Nortank Carrier pool, a chartering and operating pool of handysize product tankers. Members of the pool included I.M. Skaugen and Mitsui & Co. Bergshav Management was also entrusted with the technical management of some of the vessels. At present the fleet under management includes 30 vessels in total, including crude oil carriers, shuttle tankers, product/chemical vessels, container vessels, car carriers, offshore construction and supply vessels. Today's Bergshav Management resides close to the site where the family has been conducting their shipping activities for generations. The management team of the company has been recruited and developed along with the fleet and activities. However, the long-term aspect has been maintained as some employees have experience within the group for more than 30 years. The total experience enables Bergshav to undertake projects and pursue business opportunities in most fields of maritime operation. The qualified and experienced management combined with a sound financial basis allows the company to develop business opportunities in a professional and reliable way. They are in a position to offer the expertise and experience of a large organization in combination with the personal follow-up and flexibility, which are the features of a smaller company.
8 Structure and financing

8.1 Corporate Structure
The shipowning company will be structured as a Norwegian limited partnership ("Kommandittselskap" or "KS") in accordance with the Norwegian Companies' Act ("Selskapsloven"). The KS will consist of one general partner ("Komplementar") and several limited partners ("Kommandittister"). A KS is a separate legal entity able to own assets and to be sued in its own name. The Vessels will be owned by the KS and registered in its name. The KS will be managed by a Board of Directors. The general partner has unlimited liability for all obligations of the KS. The general partner in this
project will be a limited liability company, Adriatic Chemical AS (owned 100% by Bergshav Tankers AS). The liability of the Limited Partners will be limited to their contributed capital and their committed but unpaid capital, both of which are regulated in the Partnership Agreement. There are statutory requirements for minimum paid in capital in a KS, and regulations for distribution of dividends and other payments to the partners. The identities of the General Partner and the Limited Partners, and the amounts of the KSs contributed and committed capital, will all be registered and publicly available in the Norwegian Register of Business Enterprises. A copy of the draft Partnership Agreement (KS avtalen) follows in the Appendix.
8.2 Financing
8.2.1
Sources
Paid in Equity
Capital requirements
Currency
EUR
The total sources and uses of capital requirements for the project are estimated as follows: Amount
4,820,000
Uses
Vessel purchase price Brvig Mistral Vessel purchase price Vedrey Ydrehall
Currency
EUR EUR EUR EUR EUR EUR EUR EUR
Amount
8,100,000 8,500,000 222,000 0 249,000 249,000 700,000 18,020,000
Senior Debt
EUR
13,200,000
Bank & legal fees Start up costs Arrangement fees Shipbroker fees Working capital
Total paid in Funds 18,020,000 Total Project Cost
In addition to the above comes the Uncalled Capital liability of the shareholders of EUR 5,5 million, as described below. As a precautionary measure, the Company is set up with EUR 700,000 of working capital, which is higher than under normal circumstances and the minimum requirement from the bank. The Arranger acknowledges that the world economy is in turbulence, hence this working capital is established as a buffer against unforeseen events. The level of working capital may be reduced by the board of the KS in the future.
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8.2.2
Capital structure
The capital structure in the project consists of paid in equity, uncalled equity and bank loan. The details on the capital structure per Vessel are as follows:
Capital structure
Paid in Equity Brvig Mistral Uncalled Equity Brvig Mistral
Currency
EUR EUR
General Partner
229,500 269,500
Limited Partners
2,065,500 2,425,500
Total
2,295,000 2,695,000
Paid in Equity Vedrey Ydrehall Uncalled Equity Vedrey Ydrehall
EUR EUR
252,500 280,500
2,272,500 2,524,500
2,525,000 2,805,000
Bank loan Brvig Mistral Bank loan Vedrey Ydrehall
EUR EUR
6,500,000 6,700,000
Total including Uncalled Capital
EUR
23,520,000
8.2.3
Debt financing
The Company has received a firm offer from Nordea Bank, for the long term financing of the Vessels. The main terms of the loan facility are summarised as follows:
Facility Amount: Final Maturity: Repayment: EUR 13,200,000 6 years from drawdown Repayable in 24 quarterly instalments of EUR 397,500. EUR 194,775 for Brvig Mistral and EUR 202,725 for Vedrey Ydrehall EURIBOR for 1,3 or 6 months. Interest is payable quarterly. An interest rate swap for the loan amount will be agreed. Interest Margin: Arrangement Fee: Agency Fee: Security: 2% p.a. 1% upfront EUR 10,000 per annum 1st priority cross collateralised mortgages over the Vessels. Interest hedging is secured on a pari passu basis. 1st priority assignment of earnings and insurances 1st priority pledge of accounts 1st priority assignment and acknowledgement of the Bareboat Charter and CoA
Interest:
Uncalled Capital requirement:
EUR 5,500,000 in total EUR 2,695,000 for Brvig Mistral Page 27 of 76
EUR 2,805,000 for Vedrey Ydrehall Minimum cash of EUR 100,000 per vessel Minimum Value Clause: The charter free value of the Vessels to remain above 110% of the loan (net of any cash) during the first year, 125% at all times thereafter. The Fair Market Value to be established by two reputable shipbrokers appointed by the agent in cooperation with the Borrower.
Financial Covenants:
The loan agreement will contain certain clauses regarding the market value of the Vessels compared to the loan outstanding at any time. If the market value of the Vessels falls dramatically due to circumstances in the shipping market, this could potentially trigger a breach of the minimum value covenant. In such a case, Adriatic Chemical KS may consider calling on Uncalled Capital or make additional repayments on the loan. This could potentially influence the overall return in the project. In the graph below, we have shown the forecasted development of the market value of the Vessel Brvig Mistral, using the acquisition price and depreciating that over a 20 year-maximum life, plus working capital, and comparing this to the repayment schedule of the loan and the minimum value clause in the loan agreement (being 110% of the loan in year 1, 125% thereafter. As the graph below shows, there is a buffer between the anticipated value of the vessel and the outstanding loan balance. In year 1, the market value of the vessel can fall EUR 1,75 million to EUR 6,3 million, or 22%, before coming into conflict with the Minimum Value Clause. As a comparison, the former owners of Brvig Mistral reportedly bought the vessel for EUR 11,0 Million in 2007. Note that the numbers below does not take into account any accumulated cash flow.
Depreciated vessel value versus outstanding loan

9 000 000 8 000 000 Vessel value in USD 7 000 000 6 000 000 5 000 000 4 000 000 3 000 000 2 000 000 1 000 000 1 2 3 End of year Vessel book value Minimum value covenant Loan outstanding 4 5 6 141% 110% 155% 125% 125% 125% 125% 125% 174%
202%
247%
247%
8.2.4
Income
The Vessels will from delivery be employed on a 6-year Bareboat Charter to Dinamarin at pre-agreed, fixed bareboat rates. The rates are based on an all-in interest rate of 5,5% p.a. and a target IRR to
the investor of 20%. The rates below are indicative and will be fixed upon drawdown of the bank loan. Any changes in the interest rate swap will cause the bareboat rates to be adjusted accordingly. The bareboat rates will be based on 365/366 day income and generate the following estimated gross income: Vessel
Brvig Mistral Vedrey Ydrehall
BB rate
EUR 4,150 EUR 4,250
Annual income
EUR 1,514,750 EUR 1,551,250
8.2.5
Operational expenses (Opex)
All costs related to crewing, maintenance, insurance and other operational expenses are for the cost of the Bareboat Charterer and are not covered by Adriatic Chemical KS. This is according to standard terms under Bareboat agreements, being a Hell and High Water type of contract.
8.2.6
Expected IRR
The transaction is expected to yield an attractive return for investors based on the underlying assumptions in the project and full performance of the Bareboat Charterer. The IRR calculations are based on the following assumptions:
Vessel
Brvig Mistral Vedrey Ydrehall
Purchase price
EUR 8,100,000 EUR 8,500,000
BB rate
EUR 4,150 EUR 4,250
Interest rate
5,5% 5,5%
Depreciation rate
20 years to zero 20 years to zero
Residual value
EUR 4,100,000 EUR 4,900,000
Base Case Expected IRR

20% 20%
Residual Value assumptions The Residual Value at the expiry of the Bareboat Charter is based on a newbuilding parity of EUR 8.6 million, and depreciated over 20-years. Under normal circumstances, vessels of this type are able to trade until they are up to 28 years old. We have assumed zero scrap value.
Cash Flow Prognosis The chart below shows the projected accumulated cash flow capacity in the Project related to the Vessel Vedrey Ydrehall. As the figures show, the payback period of the paid in equity related to this Vessel is approximately 5 years.
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Accumulated Cash Flow prognosis Vedrey Ydrehall
7,0 6,0 5,0 4,0 3,0 2,0
6,5 Accumulated Cashflow Paid in equity
EUR
2,5 2,0 1,5 1,1 0,7
2,6
1,0 -
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7
Yr 8
Yr 9
Yr 10
Similarly for Vessel number two, the below graph shows the cash flow capcity in the Project related to the Vessel Brvig Mistral. For this Vessel, the payback period on the paid in equity is also approximately five years.
Accumulated Cash Flow prognosis Brvig Mistral
7,0 6,0 5,0 4,0 3,0
Accumulated Cashflow Paid in equity
5,9
EUR
2,3
2,0 1,0 Yr 1 Yr 2 Yr 3
2,4 1,9 1,5 1,1 Yr 4 Yr 5 Yr 6 Yr 7
0,7
Yr 8
Yr 9
Yr 10
Cash flow calculations for both Vessels are attached in the Appendix. The Arranger strongly emphasizes that historical return and estimation of future return is no guarantee for that such return will materialize. These kind of estimates and forecasts can not be considered as reliable indicators of actual future return. The estimates in the cash flow prognosis relies on the due and punctual performance of the Bareboat Charterer.
8.2.7
Dividend capacity
In a base case scenario the investment in the Project is expected to generate strong dividend capacity throughout the life of the project with an annual dividend capacity ranging from 15-22% calculated on paid in equity for the Brvig Mistral, excluding the 6th year of the Bareboat charter, when the vessel is assumed to be sold for the assumed residual value. Dividend capacity in year 6, after sale of the vessel and repayment of the outstanding bank loan, is estimated at 139%, as shown in the graph
below.
Dividend capacity projections Brvig Mistral
160 %
IRR% paid in equity total capital

138,7%
IRR% 140 %
120 % 100 % Percent 80 % 60 % 40 % 20 % 0%
15,0%
16,9%
18,7%
20,6%
22,5% Yr 8
Yr 9
Yr 10
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
The vessel Vedrey Ydrehall is expected to generate an annual dividend capacity ranging from 13-21%, excluding the 6th year of the Bareboat charter, when the Vessel is expected to be sold for the residual value. Dividend capacity in year 6, after sale of the vessel and repayment of the outstanding bank loan, is estimated at 158%, as shown in the graph below.
Dividend capacity projections Vedrey Ydrehall
180 % 160 % 140 % 120 % Percent 100 % 80 % 60 % 40 % 20 % 0%
IRR% paid in equity IRR% total capital
157,5%
13,4%
15,2%
16,9%
18,7%
20,5% Yr 8
Yr 9
Yr 10
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
Page 31 of 76
8.2.8
Purchase options
The Bareboat Charterer has negotiated underlying purchase options that can be exercised at the earliest on the fourth anniversary of the commencement of the Bareboat charter. The pre-agreed levels of the purchase options are similar to the Bareboat rates, subject to minor changes when fixing the interest rates swap related to the bank financing. The agreement with the Bareboat Charterer is that the Purchase Options shall generate an target IRR of 20% based on the assumptions made section 8.2.6. Vessel
Brvig Mistral
Time of exercise
After year 4 After year 5 After year 6
Purchase option
EUR 6,000,000 EUR 5,250,000 EUR 4,100,000 EUR 6,600,000 EUR 5,900,000 EUR 4,900,000
Expected IRR
20 % 20% 20% 20% 20% 20%
Vedrey Ydrehall
After year 4 After year 5 After year 6
Profit Split In addition to the above, there is a pre-agreed profit split, should the Bareboat Charterer exercise the purchase options. Upon the time of exercise, the market value of the Vessel(s) will be established by three reputable shipbrokers. If the value of the vessel in question is higher than the pre-agreed purchase option, there is a 50/50 profit split on the amount exceeding the purchase option. In such a situation, the return for investors is likely to be higher than in the projections under point 8.2.6. Investors should note that any documented cost for upgrading of the Vessels will be deducted from the market value before the profit split. Upon the exercise of a purchase option, Adriatic Chemical KS may need to cancel the interest rate swap related to the bank financing. The Bareboat Charter contains clauses where such breakage cost will be covered by the Bareboat Charterer.
8.2.9
Residual value sensitivity
The IRR in a shipping project is generated from two factors; Running cash flows paid under the contracted employment and an assumed sale of the vessel at the end of the contract. The overall return in a project is sensitive to fluctuations in the residual value assumption, and this will vary from project to project, depending on the level of the Bareboat rate. In the graph below we show the sensitivity on the residual value versus the expected IRR for the project for the Vessel Brvig Mistral. This IRR sensitivity is based on the assumptions made in section 8.2.6, but assuming that the purchase options are exercised after year 6.
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Sensitivity Residual Value Brvig Mistral
30,0 % 25,0 % 20,0 %
20,0 %20,9 % 17,6 % 15,1 % 12,3 % 8,9 %
21,9 % 22,8 %
IRR
15,0 % 10,0 % 5,0 % 0,0 % 1,1
1,6
2,1
2,6
3,1
3,6
4,1
4,6
5,1
5,6
6,1
Vessel value EUR Million
As the graph above shows, the project is estimated to break even if the Vessels residual value falls as low as EUR 1,1 million at the end of year six. The arrows show the base case assumption, where the vessel is assumed sold for EUR 4,1 million at the end of year six. In addition to the above, there is a 50/50 profit split on the market value of the Vessels at the time of exercising the purchase options. Such market value will be determined by three independent shipbrokers at the time of declaration of the purchase options. Any amount above the purchase option level will be split 50/50 between the Bareboat Charterer and Adriatic Chemical KS. Investors should note that documented cost for upgrading the Vessels which will be born by the Bareboat Charterer, will be deducted before calculating such profit split. The graph above assumes any excess value is split 50/50. For the vessel Vedrey Ydrehall, the numbers are similar, showing a cash break-even with a residual value of EUR 1,3 million at the end of year 6. The base case assumes a residual value of EUR 4,9 million at the end of year 6.
Sensitivity Residual Value Vedrey Ydrehall
30,0 % 25,0 % 20,0 % IRR
19,0 % 17,0 % 14,8 % 12,3 % 9,5 % 6,2 %
20,0 %
21,4 %
15,0 % 10,0 % 5,0 % 0,0 % 1,3
1,8
2,3
2,8
3,3
3,8
4,3
4,8
5,3
5,8
Vessel value EUR Million
Page 33 of 76
As for Brvig Mistral, there is a similar profit split agreement for Vedrey Ydrehall, which is reflected in the graph above.
8.2.10 Currency
The project is denominated in EUR, hence all income in the project are in EUR. The bank financing is in EURO, i.e. interest payments and amortisation is payable in EUR. All expenses in connection with the establishment of the Company are aimed to be denominated in Euro, with the exception of legal fees etc. payable to Norwegian lawyers. Both paid in and Uncalled Capital commitment is in EUR, while due to the Norwegian corporate legislation there is a mandatory demand to register the companys capital structure denominated in NOK in the Norwegian Register of Business Enterprises. The actual EUR amount that the investors are liable to pay will be fixed based on the exchange rate between NOK and EUR on the actual day of payment. This will be the case even in a future scenario where the investors are asked to pay in all or part of the Uncalled Capital. The investors are therefore exposed to changes in the exchange level between EUR and NOK. Investors will have to make their own decision whether or not they want to enter into hedging arrangements for their exposure between NOK and EUR. The Company will not enter into any hedging arrangements related to currency. Each investor will hence have to make their own decision relating to NOK/EUR derived exposure in this project.
9 Agreements English summary

9.1 Limited Partnership Agreement
Upon registration of Adriatic Chemical KS all the Limited Partners and the general partner shall enter into a Limited Partnership Agreement in accordance with the draft in Appendix 13.2 The Limited Partnership Agreement governs the liability between the partners and the rules of which Adriatic Chemical KS will be governed on a day to day basis. The essence of the agreement is that the general partner has unlimited liability for all obligations of the KS, while the Limited Partners liability is restricted to the total committed capital. The General Partner will own 10% of the total capital in Adriatic Chemical KS. The companys purpose is limited to buying and running two IMO II chemical tankers formerly known as MT Brvig Mistral and MT Vedrey Ydrehall. The Partnership Shares are freely transferable, given the accept of the buyer from the financing Bank (Nordea) and the board of directors. If a partner should gain control of more than 65% of the total outstanding Partnership Shares he/she will obliged to give an offer to the remaining partners to buy their shares. The price shall be no less than equal to the highest price the bidder has bought Partnership Shares for during the last six months. A decision to raise the capital in Adriatic Chemical KS must be support by no less than 2/3 of the share capital in Adriatic Chemical KS.
To trigger a sale of the Vessel(s) (other than through the purchase options), minimum [20%-25%] of the share capital in Adriatic Chemical KS must support such a decision. The level of the sales trigger is yet to be finalised. Any disputes and litigation regarding the Limited Partnership Agreement shall be solved by arbitration with Oslo as a legal venue The investors must accept that there can be minor differences between the final Limited Partnership Agreement and the draft in Appendix 13.2
9.2 The Mandate Agreement between Adriatic Chemical KS and the Arranger
Upon registration of Adriatic Chemical KS, the company shall enter into a mandate Agreement in accordance with the draft in Appendix 13.3 The Mandate Agreement gives the Arranger a mandate to raise capital on behalf of the company in order to make the company able to buy two IMO II chemical tankers formerly known as MT Brvig Mistral and MT Vedrey Ydrehall. The Arranger will comply with this mandate to the best of their effort but can not guarantee that there will be raised enough equity to purchase the Vessel(s). The Mandate Agreement states that the Arranger is entitled to a gross fee equal to 1,5% of the total purchase price for the Vessels. The Mandate Agreement is not subject to voluntarily termination and ends with the termination of the company - Adriatic Chemical KS. The investors must accept that there can be minor differences between the final Mandate Agreement and the draft in Appendix 13.3
9.3 The Corporate Management Agreement

Upon registration of Adriatic Chemical KS, the company shall enter into a Corporate Management Agreement with the Arrangers management department, in accordance with the draft in Appendix 13.4 According to the draft in Appendix 13.4 the Corporate Manager will be of assistance for the board of directors and report to the owners on regular basis the status of the company and the Vessels. The Corporate Manager will in addition be liable for accounting, manage all loan agreements and collect all income and pay all expenses (with exception of the bareboat hire) This agreement do not cover any commercial engagement in the Vessels. This is operated by the Commercial Manager Bergshav Tankers AS. The Corporate Manager is entitled to a yearly fee of EUR 19.250 for each vessel, payable in advance on a semi-annual basis. The investors must accept that there can be minor differences between the final Management
Agreement and the draft in Appendix 13.4
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10 The market
CHEMICAL TANKER MARKET OUTLOOK FOCUS ON SMALL CHEMICAL CARRIERS
Produced for: Orkla Finans Kapitalforvaltning AS by Lorentzen & Stemoco AS February 6th 2009
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1.0 WORLD ECONOMY The world economy is slowing down. Starting as credit crisis in the United States, banks and financial institutions have stopped functioning adequately, pulling down the real economy. The US, Europe and Japan are all in a recession. Even high-growth countries such as China and India are decelerating. At worst, world growth will turn negative in 2009, being the worst year in the post-war era. However, a potent combination of fiscal stimulus and monetary easing will be a much-needed boost to revive the world economy and contribute to a sustained recovery from 2010 onwards. The International Monetary Fund, in an update released on January 28th 2009, forecasts that world growth will be percent in 2009 when measured in terms of purchasing power parity. The US is expected to record growth of -1.6 percent, severely impacted by lower consumer spending and business investment. Europe will also be in negative territory, suffering particularly from weakened export sales, with the Euro area anticipated to be -2.0 percent. Japan will fare no better, probably reporting -2.6 percent on dramatically lower sales to overseas markets. China and India, the previous star performers, are still doing comparably well but may have to witness growth being weakened to 6.7 percent and 5.1 percent, respectively. The table below depicts growth forecasts by the IMF to 2010 and an extended projection by Maritime Strategies International/ Oxford Economics to 2012: Illustration 1: Outlook World Economic Growth 2006 2007 2008 2009 2010 US 2.9 2.0 1.1 -1.6 1.6 W.Eur 12.9 2.8 1.1 -2.0 0.2 FSU 7.0 8.2 6.2 1.0 3.0 Mid East 5.2 6.4 6.1 3.9 4.7 Japan 2.4 2.4 -0.3 -2.6 0.6 China 11.1 13.0 9.0 6.7 8.0 India 6.3 6.4 4.5 3.8 5.3 World 3.9 5.2 3.4 0.5 3.0 Source: IMF, Maritime Strategies International/ Oxford Economics
2011 3.2 2.5 5.4 5.6 1.9 8.5 5.5 3.7
2012 3.0 2.3 5.5 4.0 2.0 8.5 5.1 3.5
Confronting the recession, many governments have acted swiftly to prepare substantial fiscal packages. In the US, the Congress is voting on a stimulus package in the order of USD 900 bn which will include both government spending and tax breaks. In Europe, stimulus packages have also been agreed in the UK and on the Continent, and in Asia governments in Japan and China have taken the lead in agreeing on monumental stimulus packages. The Chinese package, for example, is reportedly close to USD 600 bn, designed to be spent over a two-year period. In total, fiscal stimulus in G-20 countries in 2009 is projected to be 1.5 percent of GDP. In addition, central banks in advanced economies have acted to ease monetary policy by cutting interest rates and improve credit provisions. Policy interest rates have been brought down substantially in recent months, especially as inflation pressures subsided, although falling inflation expectations are mitigating the impact on real interest rates. Central banks in emerging economies are also moving to ease their policy stance and improve market liquidity. A well-functioning financial market is a prerequisite for a sustained economic recovery. Already, there are indications that the confidence in the financial system is returning. The so-called TED-spread measures the difference between the rate for Treasury Bills and the rate for Eurodollar Bills. The resulting price discrepancy is an indicator of credit risk. An increasing TED spread is thought to indicate increasing risk, which a decreasing TED-spread is thought to indicate decreasing risk.
Illustration 2: TED-spread
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TED-spread 5 4 Percent 3 2 1 0 -1 2001
2002
2003
2004
2005
2006
2007
2008
2009
Most probably, the world economy will rebound in 2010 to 3.0 percent growth and continuing in 2011 with 3.7 percent growth. With confidence restored in the financial markets, the US will be the first economy to fight off recession and begin a new expansionary business cycle. With a few months lag, Europe will probably follow suit, improving exports. Similarly, Japan will ramp up production and expand overseas sales to the US and Europe as well as to intra-Asian markets. China and India will also stand to benefit from this upturn, increasing trade and industrial production. While heavily export-oriented, China is also aiming to increase domestic consumer spending, which could, if successful, prop up growth additionally in the coming up-cycle. Longer-term growth will be heavily-reliant on emerging economies in Asia, Middle East, Africa and South America. In particular, China and India will play a crucial role in world growth. China is currently the third largest economy in the world following the US and Japan. With a 1.3 bn strong population, a rapidly more affluent middle class and a relentless urbanization, consumer demand will be an exponential factor. Over the next ten years, 100 cities in China are planned to inhabit more than 3 million people, attracting consumers with requirements for food, housing, electricity, work and transportation. The same development holds true for Indias 1.1 bn population, though the pace in India is slower than that of China. The economic reawakening of these countries, and the aspirations of billions of people world-wide, will not be dismissed so easily. 2.0 OIL DEMAND AND SUPPLY 2.1. OIL DEMAND The global demand for oil is abating. Annual oil demand growth was negative for the first time in decades last year, contracting by 0.1 mbpd. This year, oil demand growth is expected to continue on a downward trend sliding by an additional 0.6 mbpd, ending at 85.4 mbpd. However, there are large differences in regional oil demand. The largest demand destruction is occurring in developed economies like the US, Europe, Japan and South Korea. At the same time, demand is believed to increase in emerging economies, most notably in China, India, the Middle East and South American countries. US oil demand started to decrease in January 2008 and has weakened ever since. In fact, the US oil demand is on a trajectory of declining by 1.5 mbpd from 2007 to 2010. Given todays outlook, US oil demand will probably continue to slide until the economy improves in the course of 2010. European oil demand started falling a few years ago; 2008 demand was unchanged from 2007 levels. Asian economies like Japan and South Korea are experiencing massive demand destruction with reduced oil imports and refinery production as results. However, emerging economies ensure that Asia will be the region with the smallest demand contraction and the best future prospects regarding
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oil demand. China is currently subsidizing small cars for their citizens, a move that will secure a certain oil demand growth. Besides, population and welfare growth is significant in the emerging countries, being a driver for oil demand growth. Illustration 3: Projected World Oil Demand
Source: KBC Market Services The current demand contraction is believed to be temporary. Oil demand is related to the world economy. As soon as the world gets back on track, oil demand is expected to rebound. World economic growth is expected to regain its strength in 2010, propping up oil demand within 12 months. However, US and European demand is not likely to reach levels of 2006 and 2007 in many years to come. Factors like fuel efficiency, environmental awareness, stumbling manufacturers of large gas guzzlers and a negative European population growth will make future demand growth weaker than prior to 2007. Even though the current situation is depressed, oil demand will continue to grow. As stated above, future oil demand growth will be largest in Asia, with China and India taking the lions share of the increase. However, Middle East and South American countries also will contribute additionally to further oil demand growth. 2.2. OIL SUPPLY The influence of OPEC countries on oil supply will increase in the future. Non-OPEC oil production is growing at a slower rate than just a few years ago and will probably peak within few years if additional investments do not keep coming. With the current oil price at around USD 50/bbl, many new projects are uneconomical and hence are being delayed or cancelled, leading to an accelerated depletion rate. The most rapid declines in oil output are occurring in the North Sea and in the Mexican part of the Gulf of Mexico. In these regions, output is reduced by 10 percent per annum, certainly constraining regional oil supply. The most promising non-OPEC sources of oil are situated in Canada and tar sands will be very important for future oil supply. However, the production of oil from tar sands is expensive with a marginal cost of around 80 USD/bbl. These fields are not only capital-intensive, they are also time intensive and it takes from 12 to 18 months in order to prepare a field for production. The most important part of the preparation is heating; fields under development will therefore not be stopped. However, new projects are delayed due to the weak oil prices, meaning that future supply will be hurt.
Russian production is peaking and will deplete pending lack of investment. Considering the lack of transparency and predictability in the current Russian investment climate, it is not likely that foreign capital will boost Russian production the coming years. While non-OPEC production will increase at a slow rate over the next decade, OPEC production is believed to increase at a much higher rate. Considering todays demand levels, OPEC will produce far from their actual capacity; OPEC spare capacity will reach 5 mbpd in a few years. The non-OPEC depletion scenario is highly important for the tanker industry and an important driver for dwt demand. The worlds largest oil consumer, the US, depends to a large degree on oil supplies from the Atlantic Basin. As these supplies are depleting, supplies must be taken from somewhere else, which in reality implies OPEC countries in the MEG and their large production reserves. The long distance from the MEG to the US creates an increased dwt demand.
Illustration 4: Non-OPEC and OPEC production
NON-OPEC PRODUCTION
MBD
MBD
OPEC PRODUCTION
33 32 31
58 56 54
30
52
29
50
28
48 46 44
27 26 25
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: L&S 3.0 DEMAND FOR MR PRODUCT TANKERS 3.1. DEMAND FOR PETROLEUM PRODUCTS Demand for petroleum products, decreasing in 2008, will continue to fall in 2009 before rebounding in 2010, driven by emerging economies around the world, but most notably in Asia. There are great differences in demand. We divide the world in three main areas: North America, Europe and Asia. Not only do these areas consume the most of the worlds petroleum products, they are also host to the majority of the worlds refinery capacity and they are located far from each other, hence demand and supply differences between these areas are crucial to understanding the product tanker trades.
Illustration 5: Regional demand for petroleum products

Petroleum products demand
1,25 80,0 78,0 0,75 76,0 Mill bbls/day Mill bbls/day 0,25
Mill bbls/day 20,0 25,0
74,0 72,0 70,0
15,0
-0,25
10,0
-0,75 68,0 -1,25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 66,0
5,0
0,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Naphta 2014 LPG 2015
N America FSU
Europe A Pacific
L America Total
Africa
M East
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
N American products demand composition
Fueloil Gasoil/Diesel Jet Kerosene Gasoline
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European product demand composition

16,0 14,0 12,0 Mill bbls/day
Asian products demand composition

30,0
25,0
8,0 6,0 4,0 2,0 0,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Naphta 2014 LPG 2015
Mill bbls/day
10,0
20,0
15,0
10,0
5,0
0,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Naphta 2014 LPG 2015
Fueloil
Gasoil/Diesel
Jet Kerosene
Gasoline
Fueloil
Gasoil/Diesel
Jet Kerosene
Gasoline
Source: KBC Market Services As discussed in Chapter 2.1., US and European oil demand is contracting. The graphs clearly show that the greatest slump will be experienced in the US where demand will be 1.5 mbpd less in 2010 than it was at the end of 2007. As for Europe, oil demand started contracting already in 2007 and will contract through 2010. However, in terms of product mix, the US and Europe form two opposites: The US demand is largely composed of gasoline, whereas European demand is dieselized. As a result of these two extremes, product surpluses and deficits emerge in the two markets and products need to be imported and exported. The US is shipping surplus diesel to Europe, while Europe has a surplus of gasoline that is shipped to the US. US and European markets are increasingly subject to restrictions on contamination in fuels. In the US, summer-spec gasoline boosts demand for blend-stock, most notably ethanol and alkylate. Going forward, the US will rely more heavily on ethanol. Ethanol is being supplied domestically, but also from Latin America, supporting IMO tonnage demand from the region. As for Europe, starting January 1st 2009, all transportation fuels must satisfy increasingly tight sulphur restrictions of 10 ppm. Since Europeans are unable to support themselves with ultra-clean products, this needs to be imported material. In Asia, petroleum products demand will grow slightly in 2009 and then expected to accelerate thereafter. Compared with US and European markets, Asia has a large interest for naphtha that is used as feedstock in the petrochemical industry. Except for fuel oil, demand for all products appears to be growing over the next years. There are numerous drivers for Asian demand growth in addition to the petrochemical industry. First, and very important, a rapidly growing middle class in China and India consumes an increasing amount of petroleum products. Today, the middle class in these two countries consist of 500 million people and this number is increasing rapidly. Among other effects, this is leading to soaring car sales despite the economic downturn. In January 2009, 790 000 new cars were sold in China, for the first time outperforming US sales. The potential is enormous: In India there are 7 cars per 1000 capita, the Chinese equivalent is 44. For comparison, there are 750 cars per 1000 capita in the US. Some of the drivers for petroleum products are of course important factors for product tanker demand as well. However, adding to the complexity, trades result from different demand mixes in different regions, localization of refineries and price differences. In the case of a country producing less of a product than is consumed a deficit emerges which needs to be filled by imports. Furthermore, arbitrage opportunities arise when a product is being produced at a discount in one region relative to another. Price differences are believed to increase in the future as several new refineries are starting production and an over-capacity will be established. Hence, if a region manages to offer cheap products that are economically favorable including transportation costs, the products will probably be imported. That is happening on a large scale today, most notably in the Pacific and in the Atlantic basins, and it is substantially affecting product tanker demand. 3.2. GLOBAL REFINERY CAPACITY After several years of weak growth in the global refinery capacity, huge additions will be made over the next years. Total refinery capacity grew by 0.9 percent in 2007 and by 1.5 percent in 2008. Expected growth rates in 2009 and 2010 are 3.3 percent and 2.1 percent, respectively. Combined, these correspond to a growth in refinery capacity of nearly 5 mbpd in 2009 and 2010.
Illustration 6: North America, Europe and Asia are the main refinery regions
World crude distillation capacity
100 90 80 70 Mill bbls/day 60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 Europe Total Middle East Change on year 2012 0,5 0,0 1,5 1,0 2,5 2,0 % North America Total FSU/Russia Asia Latin/South America Total Africa Oceania 3,5 3,0
Source: KBC Market Services The majority of these additions will come in Asia and in the Middle East, while refinery upgrades will increase North American refinery capacity. A prime example of a new refinery is Reliances new plant at Jamnagar, India. Reliance Jamnagar is starting up in April 2009 and is designed for a nameplate capacity of 580 000 bbls/day; all intended for exports. The Reliance refinery is a highly complex plant with the ability to process cheap and heavy crude to ultra-clean products that are highly demanded in the west. However, depressed US gasoline demand makes Reliance search for other consumers for their gasoline as the US was originally targeted as the recipient of the Indian gasoline. The Reliance gasoline is therefore expected to enter the Asian markets. However, the situation is different for the middle distillates coming out of Reliance. Much of this is expected to enter European markets through terminals in the Mediterranean as Europe has a recession-proof distillate deficit of 500k bpd. Much of Reliances 250k bpd distillate is therefore expected to go west and enter European markets. Reliance will also produce 50-70k bpd of alkylate, a highly valued gasoline blend-stock in the US. The Reliance refinery is a prime example of changing trade patterns; huge refinery additions will open up new trades and make others fade away. Several so-called tea-pot refineries in China are most likely to be hurt by the competition with larger plants enjoying superior efficiency and economy of scale. Hence, more products need to be imported and the sources are expected to be the new mega-plants popping up across Asia. Besides, products will have to be transported longer distances, an obvious driver for MR demand. Illustration 7: Asia and the Middle East attracting more refinery capacity
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Location of world crude distillation capacity

100 % 90 % 80 % 92 70 % 60 % 50 % 40 % 30 % 84 20 % 10 % 0% 2005 2006 2007 2008 2009 Asia-Pacific 2010 2011 2012 82 80 Mill bbls/day 90 88 86 96 94
Atlantic Basin
Middle East
World refing capacity (RHS)
Source: KBC Market Services The huge additions to refinery capacity are changing the international refining industry. The industry will be subject to softer capacity utilization. This will have several consequences. First of all, markets that are under-supplied with specific products will have different options for sourcing. We expect a dislocalization scenario where the production plants are located farther from end markets. Moreover, the refining industry will have more competition and prices will be affected. The refinery that offers the cheapest products will gain market shares. We therefore believe in increased arbitrage trades in the future. Illustration 8: Trade flows
Demand vs. refinery capacity in selected markets
120 % 110 % 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 2000 2001 2002 2003 N America Asia-Pacific 2004 2005 Europe Africa 2006 2007 2008 L America Middle East 2009 2010 2011 2012
FSU/Russia
Source: KBC Market Services
Illustration 8 shows the relationship between demand and production capacity in several regions world-wide, resulting in the theoretical deficit in each region. North America has been dependent on supplies from abroad in order to meet demand, but with decreasing gasoline demand and increasing production capacity, the balance will soften. Also interesting, demand growth and refinery additions in Asia will decrease Asian dependence on imports, hence intraAsian trades will grow, supporting demand for specific tonnage, most notably MRs. It is also worth noting that despite huge additions in the Middle East Gulf, the demand /capacity ratio will increase in the future.
3.3. DEMAND FOR PRODUCT TANKERS The discussion on regional petroleum product surplus and deficits leads us to our projection of tanker trades and demand. As stated earlier, the demand mix in a region does not always match the production mix. This creates trade flows that again generate dwt demand. Some large trades have always been present, while other trades arise and some fade away. The Atlantic triangulated trade of gasoline and gasoil is a prime example of the former, while new trades caused by the Reliance refinery is an example of the latter. We will in this chapter outline new trades that product tankers can benefit from. New trades are mainly triggered by changes in the set of possible suppliers and may therefore be considered
questions of sourcing. However, especially evident in Asia, demand for petroleum products must be taken into account. Based on demand and supply figures, utilization rates, historical trade patterns and forecasts of these, we have calculated demand for product tankers through 2014. We will comment briefly on the trade flows in and out of the main regions in the world. North America North America, the worlds greatest oil consumer, have for a long time been supplied with gasoline by Latin America, Europe and the FSU. We believe that these established trades will continue into the future, but we expect a decrease in imports from the FSU. The US has for a long time imported gasoline from Romanian refineries. However, as Reliance Jamnagar and other modern refineries, most notably in the Middle East Gulf, come on-stream, FSU imports will be replaced by products from the mentioned sources. This is mainly caused by increased restrictions regarding sulphur content in the gasoline used in North America, but can also be seen as a result of increased domestic demand in Eastern Europe and the FSU. It is also worth noting that despite increased North American refining capacity and decreased demand, we expect dwt demand to increase in the future, growth being generated by the increasing product tanker distances. North American exports have three main destinations: Asia (Japan, South Korea, China/Taiwan), Europe, but most importantly Latin America. All these trades are believed to increase in importance in the future. Diesel and middle distillates are being shipped to Europe, naphtha and fuel oil to Asia and gasoline to the increasingly gasoline-thirsty Latin America. Illustration 9: North American dwt demand
D W T d emand b y N o rt h A merica
DWT dem and - N Am erican exports

5,00 4,50 4,00 3,50 3,00 2,50 2,00 1,50 1,00
18 16 14 12 10 8 6 4 2 0 2006 2007 2008 2009 2010 2011 2012 2013
0,50 0,00 2006 2007 2008 2009 2010 2011 2012 2013 2014
Nort h America
Lat in America
Europe
Middle East
Asia
Europe
Lat in America
Asia
Europe Europe is becoming increasingly dependent on Russian exports. The growth is first of all attributed to European dieselization; Europe is consuming an increasing amount of diesel at the cost of gasoline and therefore looks to Russia for additional supplies. At the same time, Europe is requiring a massive amount of dwt as a result of intra-regional trades. However, European intra-regional trades are mainly employing smaller vessels, sub 20k dwt. Much gasoline is being exported to North America, but refiners have to sell gasoline at a discount in order to make it possible to profit on shipping gasoline across the Atlantic. Refiners are therefore creating an arbitrage window in the Atlantic. The reason for doing so is to satisfy domestic gasoil demand and to be less reliant on imports. Illustration 10: European dwt demand
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DWT dem and by European im ports

14 12 10
DWT dem and - European exports

12,00 10,00 8,00
8 6 4 2 0 2006 2007 2008 2009 2010 2011 2012 2013 2014
6,00 4,00 2,00 0,00 2006 2007 2008 2009 2010 2011 2012 2013 2014
Nort h America
Lat in America
FSU
Af rica
Middle East
Int ra regional
N America
L America
Af rica
Asia
Int ra regional
Asia Asia, the region where we expect the largest growth in dwt demand, is mainly supplied by the Middle East Gulf. However, as discussed earlier, intra-Asian trade is massive and is likely to increase in the future due to increased Asian production capacity as well as a large demand growth. Asian products seem to be intended for Asian markets; exports out of Asia are expected to stay stable at todays levels. Illustration 11: Asian dwt demand
DWT dem and by Asia - im ports
20
DWT demand by Asia - exports
35 30 25 20 15 10 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014

Mill dwt
18 16 14 12 10 8 6 4 2 0 2006
2007
2008
2009 N America
2010 Oceania
2011 Asia
2012
2013
2014
N Amer ica
L Amer ica
Eur ope
Middle East
Int ra regional
4.0 DEMAND FOR CHEMICAL TANKERS 4.1. OVERVIEW OF THE CHEMICAL TANKER MARKET The spectrum of cargoes carried by chemical tankers is composed of: Organic chemicals Vegetable oils Inorganic chemicals Other cargoes such as molasses.
The trade of chemicals and vegetable oils has grown briskly during the last ten years, mainly backed by unprecedented economic growth in Asia. The growth in the chemical trades is closely linked to industrial production, consumer spending and fixed asset investments, factors that have grown the most in emerging markets.
4.2. ORGANIC CHEMICALS The organic chemical industry is currently being impacted by the economic downturn. Manufacturers like Dow, BASF, DuPont and others are shutting down capacity all over world, delaying cracker additions and cancelling mergers them between. However, there are large regional differences. The American and European chemical industry is currently in a down-cycle that is predicted to last through 2010, at least. In Asia, the situation is dramatically different. Even though 15 percent of the total chemical capacity is currently shut in, crackers are currently increasing production and the industry is expected to be back in full operation towards the end of 2009. In other words,
Western chemical markets are mature and saturated with a weak growth outlook. The growth potential lies in Asia with increasing demand and a growing production capacity. Illustration 12: Organic chemical production capacity
Organic Chemical Capacity by Region
300 250
Mill tons
200 150 100 50 2004 Asia 2005 2006 Europe 2007 2008 2009 2010 2011 2012
Americas
Middle East
Australasia
Africa
Of course, reduced chemical output will hurt trade, especially in the Atlantic Basin. Overall, global trade growth of organic chemicals is expected to be weak in 2009, but the growth in Western trade will be far weaker than in the East. However, dwt demand growth is likely to remain stable or actually slightly increasing as a result of cracker dis-localization; Chemical capacity is growing briskly in the East and crackers are situated far from their end-markets. The distances traveled will therefore employ tonnage. The dwt demand driven by organic chemicals is expected to regain strength in 2010 and organic trade is expected to increase every year from then on. The largest importers of organic chemicals are Asian countries. The Asian markets are supplied by intraAsian trades as well as supplies from the Middle East Gulf. The US and Europe are also importing chemicals, but as already mentioned; growth in these markets is expected to be negative this year. Illustration 13: Organic chemical trades
Organic trade by exporter
90
90
Organic trade by importer
80
80
70
70
60
60
Mill tons
Mill tons
50
50
40
40
30
30
20
20
10
10
2004 2005 2006 North America 2007 2008 2009 Middle East 2010 Europe Asia 2011 2012
2004 2005 2006 2007 2008 Latin America 2009 Europe 2010 Asia 2011 2012
Latin America
North America
4.3. VEGETABLE OILS Vegoils are mainly being exported out of Latin America and Asia. These regions are intensely increasing their production capacity, laying the ground for future trade growth. The largest importers of vegetable oils are the Asian countries, as vegetable oils have come increasingly in demand because of population growth and personal wealth. Thus, as both exports and imports of Asian countries are growing, intra-Asian trades are believed to increase in both magnitude and importance as they will employ an increasing number of vessels able to carry vegoils in the future. Europe is another strong importer of vegoils, mainly due to the inclusion of vegoils in biofuels. Interest for biofuels is expected to increase in the future, positively affecting vegoil imports.
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The vegetable oil trade is expected to grow every year in the foreseeable future, even though 2009 will have a slower growth rate than in 2010 and the years thereafter. Asian and European trades are expected to increase; other trades will probably remain at todays levels. Illustration 16: Vegoil trades
Vegoil trade by exporter
90
90
Vegoil trade by importer
80
80
70
70
60
60
Mill tons
50
Mill tons
50
40
40
30
30
20
20
10
10
2004 2005 2006 2007 2008 Latin America 2009 Europe 2010 Asia 2011 2012
2004 2005 2006 2007 Latin America 2008 Europe 2009 Africa 2010 Middle East 2011 Asia 2012
North America
North America
Combined, chemical tankers will be experiencing demand growth in 2009, despite poor economic conditions. Trade growth in organic and inorganic chemicals is not expected in 2009, overall trade growth will be secured by vegoil trades. After 2009, inorganic and organic chemicals demand is expected to rebound, adding to the positive demand impacts from vegoils. Illustration 17: Chemical trade and dwt demand growth
Trade Development
Organic Chem icals Other Cargoes 220 200 180 160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Vegetable Oils Yearly grow th rate (right axis) 9% 8% 7%
million dwt 40 35 30 25 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012
Dwt Demand Development

Inorganic Chem icals
Organic Chem icals Other Cargoes Vegetable Oils Yearly grow th rate (right axis) 12 % 11 % 9% 8% 6% 5% 3% 2% 0% Inorganic Chem icals
million tonnes
6% 5% 4% 3% 2% 1% 0%
The charts show the chemical trade development as well as the dwt demand development. Despite less trade in 2009, dwt is expected to increase as a result of shut in crackers and increased ton-mile demand arising from the fact that end-users of chemicals have to import the products from foreign sources, most notably the Middle East Gulf and Asia. Overall, we expect a 5 percent annual demand growth for chemical tankers through 2014. 5.0 SUPPLY OF CHEMICAL TANKERS 5.1. REGULATION The Marpol Annex II regulations came into force January 1st 2007 and have seriously regulated chemical trades and the possibility ships have to take on specific cargoes. In practice, it is more difficult for product tankers to switch between oil products and vegetable oils due to the FOSFA rules under which refined oil products are not listed as acceptable previous cargoes for vegetable oils. In contrast, major organic chemicals (methanol, MTBE) and inorganic chemicals (caustic soda, phosphoric acid and sulphuric acid) are listed as acceptable previous cargoes. Product tanker owners will thus need to allocate dedicated tonnage for vegetable oil trades if they want to take part in it. Moreover, the right expertise and proper certificates for handling of chemical cargoes are required, which make it more difficult for typical product tanker owners to comply accordingly. Strong trade growth in chemicals and vegetable oils, reallocation of vegetable oils to DH tonnage and higher IMO class requirements for carriage of major organic chemicals have boosted demand for chemical tankers
since 2007. 5.2. SUPPLY OF CHEMICAL TANKERS The chemical tanker fleet is growing. However, the fleet consists of several different size segments that will grow at different rates. The existing fleet compared to the orderbook is shown in illustration 5 and it is interesting to see that two sizes seem to be more popular than other segments. First, owners seem to prefer large vessels in the handy/MR segments, that is, vessels in the size range from 35 to 50k dwt. Then, also the smaller ships are subject to a significant fleet growth, especially in the 5-20k dwt segment. Further, ships below 5k dwt and between 25 and 35k dwt seem to be less popular as few orders are placed and the existing fleets are ageing. Illustration 18: Existing chemical tanker fleet
Chemical tanker fleet composition
8 7 6 5 Mill dwt
Age 16 14 12 10 8 6 4 2 0
Age distribution, chemical tankers
4 3 2 1 0 0.6-5k 5-10k 10-15k 15-20k 20-25k 25-30k 30-35k 35-40k 40-45k 45-50k Size Delivered On Order
0.6-5k
5-10k
15-20k
20-25k
25-30k Size
30-35k
35-40k
40-45k
45-50k
Single hull vessels will be phased out in 2010 as these vessels are deemed unwanted by the maritime industry. Hence, the chemical tanker fleet growth will be significantly constrained in 2010 despite a large 2.5 mill dwt entering the market. Further, single-skin scrapping will be largest in smaller segments as these segments have the most ageing fleets. Further, insurance costs, operating costs and crew and charterer displeasure soar when a vessel exceeds 20 years. Therefore, we have removed all vessels older than 25 years in our analyses. Hence, all ships delivered in 1986 will be removed in 2011 and so on.
Illustration 19: Chemical tanker fleet growth

Chemical tanker fleet growth
5 4 3 Mill dwt 2 1 0 -1 -2 2006 Deliveries 2007 2008 2009 Demolitions 2010 2011 2012 Total fleet 40 38 36 34 Mill dwt 32 30 28 26 24 22 20
Orderbook
Est demolitions
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With todays orderbook, the chemical tanker fleet size will peak in 2010 at 37.5 mill dwt, up from todays 33.7 mill dwt. We expect large fleet growth in 2009 and 2010, after 2010 deliveries will stop as very few ships were ordered late 2007 and in 2008. However, we expect contracting to resume when the financial crisis calms and credit becomes more available, but this will not affect deliveries before 2013, at the earliest. It is also worth noting that the largest bulk of chemical tanker deliveries came last year when 4 mill dwt was added to the fleet. 6.0 MARKET BALANCE CHEMICAL TANKERS The current chemical tanker market is softening because of weak demand from the chemical industry. Simultaneously, the fleet has had many additions lately and fleet utilization (the ratio of dwt demand by dwt supply) is therefore weakening. These market conditions are reflected softening chemical and small tanker rates as shown in illustration 6: Illustration 20: Chemical and small tanker rates
NW European Sm all Tanker Monthly Average Index
Rotterdam - Houston 5 000 mt easychems
300
65 60 55 $/mt 50 45 40 35
250
200
11
16
21
26 week
31
36
41
46
51
Index
30
150
2007
2008
2009
Average 2003-2008
Gulf - Far East 15k chemical rates

80 75 70 65 60 $/mt 55 50 45 40 35 30 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 week 2007 2008 2009 Average 2003 - 2008
100
50
0 jan.04
jan.06
jan.08
The rates shown above give an excellent picture of todays situation, but as mentioned in section 2, chemical trade growth is expected return to levels experienced prior to 2008. Hence, demand will increase and this will impact the market balance positively. Hence rates are likely to improve. As shown in illustration 4, dwt demand is expected to increase by 5 percent annually from 2010. Demand will also increase in 2009, but at a far weaker level at only 3 percent. However, the fleet growth was large in 2008 and the fleet will continue to grow this year as well, implying a weak utilization year and in 2010 even though 2010 will be markedly better than this 2009. Again, utilization will improve through 2012, especially since no ships are currently being ordered. There are large differences between size segments. First, the orderbook looks different between segments as some sizes will experience a larger relative fleet growth than other. Further, the various segments are excluded from certain trades due to their size. Therefore, segments are differently demanded. Combined with the relative fleet growths, the segments will not experience the same utilization. Illustration 21: Chemical tanker fleet growth, 600-5k dwt
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Chemical tanker fleet growth, 600-5k dwt

0,14 0,12 0,1 0,08 Mill dwt 0,06 0,04 0,02 0 -0,02 -0,04 -0,06 2006 Deliveries 2007 2008 2009 Demolitions 2010 2011 2012 Total fleet 0,7 0,9 1 1,2 1,3
1,1 Mill dwt

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0,8
Orderbook
Est demolitions
As the illustration above shows, ageing vessels and few deliveries after 2008 will make the fleet growth in the smallest chemical tanker segment, 600-5k dwt, negative from 2008. Hence, demolitions will outnumber deliveries in the segment, leading to fewer competitors for the young and remaining vessels. Vessels of this size are demanded all over the world, but they are well suited for coastal trading of chemicals, vegoils and clean petroleum products. Hence intra-European and intra-Asian trades with their numerous small ports and players are the main employer of these vessels. The European market is stable with a steady demand and developed trades. Vessels are most busy in North Europe and the Baltic as well as the Med and the market for these vessels is believed to exist for the years to come. However, it must be noted that many modern, slightly larger vessels are currently entering the market in great numbers. These vessels are able to enter the same ports as their smaller sisters and also take on more cargo, charters are therefore getting increasingly interested in the 5-10k dwt segment. Illustration 22: Utilization rates chemical tankers
Utilisation rates, chemical tankers

140 % 120 % 100 % Demand/supply 80 % 60 % 40 % 20 % 0% 2007 2008 2009 2010 5-20k dwt 2011 600-5kdwt 2012
All chemical tankers
If we compare demand with supply for three different segments; all chemical tankers, 5-10k dwt chemical tankers and chemical tankers smaller than 5k dwt, we arrive at somewhat different utilization rates. As can be seen in the chart, the brightest prospects are to be found in the smallest segment. However, the 5-20k dwt looks good as well. Utilization rates for both segments are expected to strengthen after 2009 as deliveries become fewer and demand picks up.
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DISCLAIMER This document has been prepared for the information of clients of Lorentzen & Stemoco AS (L&S). This document may not be reproduced, distributed or published for any purpose without the prior written permission of L&S. The content of this document, including attachments, is intended for the confidential use of the individual(s) or entity(-ies) to whom it is addressed only and may contain personal and/or confidential information. All the information and opinions contained in this document have been prepared or arrived at from sources which are believed to be reliable and given in good faith. L&S does not represent that such information is accurate or complete and it should not be relied upon as such, nor is it a substitute for the judgment of the recipient. All opinions and estimates contained herein constitute L&S judgment at the date of this document and are subject to change without notice. L&S does not accept any liability whatsoever for any direct, indirect or consequential loss arising from any use of information, opinion and/or estimates in this document.
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11 The Offer
11.1 Introduction
The Arranger hereby invites investors to subscribe for Partnership Shares in Adriatic Chemical KS under incorporation (The Company), a limited partnership SPC to be incorporated in accordance with Norwegian legislation. The offer implies that the investors are given an opportunity to order Partnership Shares in the Company, each at an amount of EUR 103,200, with paid in equity of EUR 48,200 per share. Subscription can only be made in whole percentages where the Minimum Subscription is 1 partnership share in Adriatic Chemical KS, which will commit the subscriber to a total committed capital of EUR 103,200 per 1 %.
11.2
Subscription and Subscription period
The subscription period will be from 9th of March 2009 at 09.00 hours and to 16th of March at 16.00 hours. The Arranger reserves the right to extend or shorten the subscription period at its sole discretion. However, under no circumstances will the subscription period be cancelled within the first 24 twenty four - hours of the subscription period. Subscription can only be made on the special Order Form designated for this purpose and attached to this Information Memorandum. Properly completed Order Forms must be received by Orkla Finans Kapitalforvaltning AS by 16:00 hours (Oslo time) on March 16th 2009. Order Forms that are incomplete, incorrect, or that are received after the expiration of the Subscription Period, may be disregarded without further notice to the Investor. Orders are binding for the Investors when received by the investment office. All order forms must be sent to; Orkla Finans Kapitalforvaltning AS Tordenskioldsgt. 8-10 N-0121 Oslo, Norway www.orklafinans.no Fax: + 47 22 33 14 46 Tel: + 47 22 40 08 00
11.3
Allotment Criteria
Orkla Finans Kapitalforvaltning AS will decide on allotment of the Partnership Shares in Adriatic Chemical KS. The allotment will take place after expiry of the Subscription Period. The main allotment criteria in the project will be i) to obtain an optimal shareholder structure, ii)credit approval by the Bank and iii) timeliness.
11.4
Payment and delivery of Partnership Shares
Each investor ordering Partnership Shares in Adriatic Chemical KS agrees, by signing the attached Order Form, to give the Arranger a proxy to withdraw a requested NOK amount, that is equal to the
paid in capital amount of the subscribed EUR amount on the day of withdrawal, from the designated bank account as stated in the subscription form for the number of Partnership Shares allotted to the investor. The Arranger emphasize that also future payments of all or part of the Uncalled Capital will be based on the exchange rate between EUR and NOK on the day of payment as a consequence of Norwegian corporate legislation, where it is mandatory to register the companys capital denominated in NOK in the Norwegian Register of Business. Notice of allotment will be sent out after end of Subscription Period and the Banks credit approval process. The first withdrawal will be made shortly after close of the Subscription Period. Generally, 3 days notice will be given to the investors. Upon a written request to the Corporate Manager of Adriatic Chemical KS, copies of the allocated Partnership Shares will be issued and delivered to the relevant investors. If payment for the allocated Partnership Shares in Adriatic Chemical KS, as the case may be, is not received when due, the Partnership Shares will not be delivered to the Investor. The Arranger reserves the right, to cancel or reduce the subscription in respect of the Partnership Shares in Adriatic Chemical KS for which payment has not been made, or to sell, re-allot or otherwise dispose all or parts of the Partnership Shares, and on such terms and in such manner as the Arranger may decide. The Investor will be liable for any loss, cost and expenses suffered or incurred by the Company as a result of or in connection with such disposals. The Investor remains liable for payment of the entire amount due; interest, costs, charges and expenses accrued, and the Company and/or the Arranger may enforce payment for any such amount outstanding. In the event of any delay in payment, interest will be charged at the prevailing default rates on overdue amounts.
12 Tax
A Norwegian limited partnership is not subject to income taxes. The investors, which are separate tax subjects (e.g. limited liability companies or individuals) will be taxed directly or indirectly (if several transparent entity tier structure) with respect to their relevant part of the taxable income or loss. The taxable income/loss will be calculated as if the limited partnership is subject to income taxes, but the taxable income/loss will be taxed directly or indirectly with each investors relevant share of the income/loss in the limited partnership. The relevant share of the net worth (norsk:ligningsverdier) will be allocated to each investor. The net worth allocated to the investors is limited to a maximum negative value equal to the total of the Uncalled Capital. Changes in rules and regulations relating to the individual investors tax position may occur, ref chapter 3.2 Estimated taxable income effect 100% 50% 1%
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Attachment 1: Order Form

Part 1/3
Mandatory form for ordering limited Partnership Shares in
Return by fax to: Fax nr 22 33 14 46 Orkla Finans Kapitalforvaltning AS Tordenskiolds gate 810 Postboks 1724 Vika, 0121 Oslo Org. no: 981 263 790 Acc. No:7050.06.04032 Subscription amount: Price per share (incl Uncalled Capital: Minimum subscription amount: EUR _______________________ EUR 103,200 EUR 103,200
Subscription period: 9 March 2009 0900 hrs - 16 March 2009 1600 hrs. Return to: Orkla Finans, telefax: 22 33 14 46
Orkla Finans Kapitalforvaltning AS adviser: Telephone/E-mail: Correct order form must be received by Orkla Finans on fax 22 33 14 46 within 16th March 2009 kl 16.00. All 3 pages must be signed and sent together for a order form to be valid. The Arranger can at its sole discretion accept or cancel order forms that are received after the end of the subscription period, and at its sole discretion end, cancel or prolong the subscription period. Number of Partnership Shares ordered in Adriatic Chemical KS, with face value EUR 103,200:
Subscription of paid in capital (minimum EUR 48,200 (1%)): Share of Uncalled Capital: ( minimum EUR 55,000 (1%)): Total Commited Capital: (minimum EUR 103,200 (1%)):
Name Address P.O BOX Organisation number Withdrawal proxy: The subscription amount must be available on the investors nominated account tentatively on 16th March 2009, however investors may be notified by the Arranger of an earlier withdrawal if deemed necessary . I/we hereby grant Orkla Finans Kapitalforvaltning AS an irrevocable power of attorney to on my/our behalf to charge my bank account; Account number: for a NOK equivalent amount of EUR: Name of the account owner (capital letters):
1. The undersigned hereby grants the receiver of this form through the receivers bank an irrevocable power of attorney to charge my account nominated above for transfer to Orkla Finans Kapitalforvaltning AS account. This Power of at attorney only gives right for one single charge. 2. Furthermore the undersigned hereby grants the receiver of this form an irrevocable power of attorney to gather information and documentation from my bank to verify that I/we have right of disposal to the nominated account, and to perform a cover note. 3. This power of attorney is valid to a period of 7 seven days from the date of this order form. If the charging is to be performed in the future, this power of attorney is valid for a period of 7 seven days from the given date of the future charging. Place/date: Adriatic Chemical KS Obliging signature: Page 56 of 76
Part 2/3 I/we hereby accept that the Arranger may in its sole discretion cancel or reduce my/our order without providing prior reasons therefore. Order forms that are received by the Arranger are legally binding for the subscriber and cannot be withdrawn. Final allotment will be conducted by the Arranger in accordance with the principles given in the Information Memorandum. Allotment of fewer shares than subscribed does not affect the investors obligation to pay for the number of shares that was allocated to the investor. Award of shares are subject to the investors accept of, and entering into the limited partnership agreement that is enclosed as appendix 13.2 to the Information Memorandum in draft form. By signing this Order Form the investor confirms that he/she accept the terms in the limited partnership agreement and hereby grants Orkla Finans Kapitalforvaltning AS an irrevocable power of attorney to sign the limited partnership agreement on behalf of the investor. Entering in to the limited partnership agreement take place at the sole discretion of the Arranger, and at the same time as the Arranger will subscribe for shares in Adriatic Chemical KS on behalf of the investor and for the investors account and risk. Furthermore, I hereby grant the Arranger an irrevocable power of attorney to enter into and sign the Commercial and Corporate Agreements enclosed as Appendices in draft form, and I am aware of and accept that Adriatic Chemical KS will enter into binding Bareboat Charter party agreements based on BARECON 2001 and a MoA for purchasing the Vessels. The total subscription amount must be available on the investors nominated bank account no later than March 16th 2009. The total subscription amount must be available on this account until the account has been charged in accordance with this order form. There can be no obstructions that prevent charging the account. If the balance on the nominated account is not sufficient, or the account for some reason could not be charged, the Arranger reserves the right to sell, re-allot or otherwise dispose all or parts of the Partnership Shares, for the investors risk and account, and on such terms and in such manner as the Arranger may decide. In the event of any delay in payment, interest will be charged at the prevailing default rates on overdue amounts.
The subscription amount shall be charged account number: The undersigned hereby declares that he/she understands that investments in shipping is subject to various risk factors. The investor may lose all or part of the investment, including the Uncalled Capital. Investors who neither can nor want to incur such risk, should not enter into Adriatic Chemical KS. The Arranger strongly emphasizes that historical return and estimation of future return is no guarantee for that such return will materialize. These kind of estimates and forecasts cannot be considered as reliable indicators of actual future return. The undersigned hereby confirms that he/she has received, read and understood the Information Memorandum with all its appendices, and that he/she has conducted all the investigations he/she seen necessary before investing in Adriatic Chemical KS. Investors that do not receive regular investment advice from Orkla Finans Kapitalforvaltning AS should not enter into this investment.
Place/date
Obliging signature:
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Part 3/3
By signing this order form I/we hereby give the Arranger hereby grant receiver of this form an irrevocable power of attorney to subscribe me/us for the number of Project shares above for mine/ours risk and account, together with signing and entering into all relevant agreements, including but not limited to final purchase agreement, management agreement, loan agreement with accompanying documentation, SWAP agreements, charter agreement etc. I/we accept that the Information Memorandum with all its appendices and/or appurtenant documentation that it is referred to can be altered as long as such alterations do not effect the Project or investment case in a material way. General conditions for payment with one-time power of attorney - securities trading Payment with one-time power of attorney is a service that is a collaboration between the Norwegian banks. In the relation between the payer and the payers bank the following general terms apply; 1. 2. 3. 4. The service Payment with One-Time Attorney Securities Trading is supplemented by the agreement between the payer and the payers bank, ref. credit agreement part C General terms for deposit and payment. Costs regarding use of Payment with One-Time Attorney Securities Trading are subject to the at any time given price from the bank. The bank will charge the nominated account for accrued cost. The one-time attorney shall be signed by the payer and delivered to the receiver . The receiver shall convey the one-time attorney to its bank which will charge the payers bank. In case of an annulment of the one-time attorney, the payer must first inform the receiver. According to the Act of Financial Agreements the payers bank is obliged to aid and abet if the payer retract a payment that is not conducted. Such annulment could be redeemed as a breach of the legal agreement between the payer and the receiver. The payer can not give a one-time attorney to charge an amount that exceeds the amount that is available on the account at the time of debit. Payers bank will normally perform a cover note. Charging beyond available amount shall be paid in by the payer as soon as possible. Payers account will be charged on the agreed upon date of payment. If such date is not stated in the onetime attorney , the debit of the account will take place as soon as possible after the receiver has given his/her bank duly notification. The account will not be charged after expiration of the proxy period as mentioned above. Subject to normal circumstances the payment will be credited the receivers bank account within 3 working days from debit date. In the event of unlawful debit on the basis of the one-time attorney, the payers claim for reimbursement is regulated by the payers agreement with the bank and Act of Financial Agreements.
5. 6.
7.
Duty of identification If subscribing for Project Shares, the investor has a duty to personally identify him-/herself facing a person employed by Orkla Finans Kapitalforvaltning AS or another person that has a legal right to represent Orkla Finans Kapitalforvaltning AS. If the investors consist of a corporation the person that represents this corporation must provide a Certificate of Incorporation that documents that this person is entitled to represent the corporation. Personal identification as described in this paragraph is an absolute condition for carrying through the transaction, and Orkla Finans Kapitalforvaltning AS reserve its right to cancel or sell subscribed or allocated shares for the investors risk and account in the case that the investor nor can or want to comply with the need for identification in accordance with the terms in the Act Against Money Laundering of 20th June 2003. By signing this order form, the investor verifies that he/she has read, understood and accepted Orkla Finans Kapitalforvaltnings general terms of business. These general terms of business can also be found at www.orklafinans.no In accordance with the Information Memorandum, the undersigned hereby orders shares in Adriatic Chemical KS in accordance with and on those terms set out in the Information Memorandum with all its appendices including this order form.
Place and date:
Obliging signature:
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13 Appendix
13.1
Brvig Mistral
Cash flow (EUR) Operations Revenue pr. Year Operating cost Admin fees Docking/Service cost CF from operations Investment Purchases / Sales Working capital Gross CF from operations & investment IRR% total capital Financing Junior Debt Amortisation Junior Debt Interest Outstanding Senior Debt Amortisation Interest Outstanding Net CF to equity IRR% equity Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
Detailed cash flow projections
(345 000)
1 514 750 (50 000) 1 464 750
1 514 750 (50 000) 1 464 750
1 514 750 (50 000) 1 464 750
1 514 750 (50 000) 1 464 750
1 514 750 (50 000) 1 464 750
1 514 750 (50 000) 1 464 750
(345 000)
(8 100 000) (350 000) (8 795 000) 10,3%
1 464 750 16,7%
1 464 750 16,7%
1 464 750 16,7%
1 464 750 16,7%
1 464 750 16,7%
4 100 000 350 000 5 914 750 67,3%
6 500 000 6 500 000 (2 295 000) 20,1%
(779 100) (341 431) 5 720 900 344 219 15,0%
(779 100) (298 581) 4 941 800 387 069 16,9%
(779 100) (255 730) 4 162 700 429 920 18,7%
(779 100) (212 880) 3 383 600 472 770 20,6%
(779 100) (170 029) 2 604 500 515 621 22,5%
(1 825 400) (779 100) (127 179) 3 183 071 138,7%
Vedrey Ydrehall
Cash flow (EUR) Operations Revenue pr. Year Operating cost Admin fees Docking/Service cost CF from operations Investment Purchases / Sales Working capital Gross CF from operations & investment IRR% total capital Financing Junior Debt Amortisation Junior Debt Interest Outstanding Senior Debt Amortisation Interest Outstanding Net CF to equity IRR% equity Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
(375 000)
1 551 250 (50 000) 1 501 250
1 551 250 (50 000) 1 501 250
1 551 250 (50 000) 1 501 250
1 551 250 (50 000) 1 501 250
1 551 250 (50 000) 1 501 250
1 551 250 (50 000) 1 501 250
(375 000)
(8 500 000) (350 000) (9 225 000) 10,8%
1 501 250 16,3%
1 501 250 16,3%
1 501 250 16,3%
1 501 250 16,3%
1 501 250 16,3%
4 900 000 350 000 6 751 250 73,2%
6 700 000 6 700 000 (2 525 000) 20,4%
(810 900) (351 775) 5 889 100 338 575 13,4%
(810 900) (307 176) 5 078 200 383 174 15,2%
(810 900) (262 576) 4 267 300 427 774 16,9%
(810 900) (217 977) 3 456 400 472 373 18,7%
(810 900) (173 377) 2 645 500 516 973 20,5%
(1 834 600) (810 900) (128 778) 3 976 972 157,5%
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13.2
The Limited Partnership Agreement

KOMMANDITTSELSKAPSAVTALE FOR ADRIATIC CHEMICAL KS
Mellom Adriatic Chemical AS, som komplementar, og undertegnede kommandittister er det inngtt flgende kommandittselskapsavtale:
1. NAVN. Kommandittselskapets navn er Adriatic Chemical KS, (heretter benevnt Selskapet).
2. FORRETNINGSADRESSE. Selskapets forretningsadresse skal vre i Oslo. deltagerne samtykker i slik registrering. Selskapet skal registreres i Foretaksregisteret og
3. FORML. Selskapets forml skal vre kjpe og drive kjemikalietankerne [* * ] (ex Brvig Mistral og Vedrey Ydrehall). Endring av formlet krever 100% tilslutning fra deltagerne. 4. SELSKAPETS KAPITAL.
Selskapets kapital er NOK [**], som er lik deltagernes samlede innskuddsforpliktelse.

Selskapskapitalen er fordelt mellom deltakerne slik: Komplementaren Kommandittistene Til sammen NOK NOK NOK [**] [**] [**]
De enkelte deltakeres navn, adresse, underskrift og andel av selskapskapitalen er inntatt i bilag 1) til denne avtalen. Bilaget er anse som en del av avtalen. I tillegg har de enkelte deltakere undertegnet denne avtale. Ved omsetning av andeler i Selskapet skal nye deltakere skriftlig tiltre denne avtale.
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5. INNSKUDD. NOK [**] av selskapskapitalen innbetales ved stiftelse av selskapet [dato]. Av Selskapets kapital og den enkelte deltakers innskudd er 40 %, tilsvarende NOK [**], bundet selskapskapital etter reglene i Selskapsloven. Innkalling av kapital foretas av forretningsfrer etter beslutning av Selskapets styre. Belpene forfaller til betaling 2-to- uker etter at skriftlig varsel er sendt fra forretningsfrer. Ved for sen betaling plper morarente etter den til enhver tid gjeldende morarentelov.
6. EIERFORHOLD/ANSVAR. Komplementaren har ubegrenset ansvar for Selskapets forpliktelser. De vrige deltakeres ansvar er begrenset til den enkeltes andel av selskapskapitalen. Komplementaren har ikke rett til drive annen virksomhet enn vre komplementar i Selskapet. Komplementaren er undergitt de instruksjoner og plegg styret og selskapsmtet gir. Selskapets kreditorer kan bare gjre sitt krav gjeldende mot Selskapet, ikke direkte mot deltagerne, jfr. Selskapslovens 2-4, nr. 2.
7. STYRET - SELSKAPETS REPRESENTASJON. Selskapet skal ha et styre p [**] medlemmer. Komplementaren har rett til utpeke ett av styremedlemmene. Styrets formann velges av selskapsmtet. Selskapsmtet kan velge en personlig varamann for et eller flere av styremedlemmene. Styrets formann har ikke dobbelt stemme. Styret har den alminnelige beslutningsmyndighet i Selskapet. Tre styremedlemmer i fellesskap representerer Selskapet utad og tegner dets firma. Styret skal p Selskapets vegne inng forretningsfreravtale med Orkla Finans Kapitalforvaltning AS (Forretningsfrer) og disponentavtale med [Bergshav Management AS](Disponent). Forretningsfrerog disponentavtalen inngr som en del av denne avtalen og finnes som vedlegg. Bde forretningsfrer og disponent kan drive annen virksomhet. Ved salg av skipet skal Forretningsfrer ha rett til 1,5 % salgskommisjon, p de vilkr som nrmere fastsettes i forretningsfreravtalen. Forretningsfrer og disponent er undergitt de instruksjoner og plegg som selskapsmtet og styret gir. Styret skal videre pse at Selskapets bankkonti opprettes i Selskapets navn og det er kun styret som er berettiget til gi fullmakter om disposisjon av Selskapets bankkonti. Saker som er av usedvanlig art eller av srlig viktighet for Selskapet kan bare avgjres av styret nr selskapsmtets beslutning ikke kan avventes uten vesentlige ulemper for Selskapet. Selskapets deltagere skal i s fall snarest mulig underrettes om saken.
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8. REVISJON. Selskapets revisor, som skal vre statsautorisert, velges av selskapsmtet.
9. SELSKAPSMTET. Deltakerne utver den verste myndighet i Selskapet gjennom selskapsmtet. Ordinrt selskapsmte avholdes hvert r innen utgangen av april mned. Selskapsmtet skal behandle: 1. rsberetning. 2. Fastsettelse av resultatregnskap og balanse, herunder anvendelse av overskudd, eller dekning av underskudd. 3. Andre saker som er nevnt i innkallingen. Ekstraordinrt selskapsmte avholdes nr dette kreves av komplementaren, eller deltaker som representerer minst 1/10-del av selskapskapitalen. Saker som etter Selskapets forhold er av uvanlig art eller srlig viktighet, s som opptak av strre ln, salg av skip, utleie av skip hvor certepartiet har en varighet p over 12 mneder, og pantsettelse av skipet skal behandles av selskapsmtet. Disponenten kan slutte skipet p reiser inntil 6 mneder. Slutninger mellom 6-12 mneder forelegges og godkjennes av styret. Begjring om ekstraordinrt selskapsmte sendes forretningsfrer, som uten ugrunnet opphold srger for innkalling til selskapsmte. Selskapsmtet innkalles med minst 7 - syv - dagers skriftlig varsel. I ekstraordinre situasjoner kan selskapsmte innkalles med minst 3-tre-dagers skriftlig varsel. I innkallingen nevnes de saker som skal behandles p mtet. Om andre saker enn nevnt i innkallingen kan det ikke treffes beslutning med mindre samtlige deltagere er tilstede og samtykker. Innkallingen kan sendes pr e-mail eller p annen betryggende mte. Deltakerne har rett til la seg representere ved fullmektig eller skriftlig avgi stemme. Benyttes fullmektig m denne fremlegge datert skriftlig fullmakt. Revisor har rett til vre tilstede p selskapsmtet. Det skal fres protokoll over forhandlingene. Protokollen oppbevares av forretningsfrer, som etter hvert mte sender kopi til alle deltakere.
10. AVSTEMNINGSREGLER. Komplementaren og kommandittistene har stemmerett i forhold til sine respektive andeler av Selskapets selskapskapital. Avgjrelse i selskapsmtet, inklusive inngelse og oppsigelse av avtale med tredjemann, herunder forretningsfrerog/eller disponentavtale, fattes, med mindre annet fremgr av denne avtale, med 2/3 flertall av den selskapskapital som er representert i selskapsmtet.
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Manglende innbetaling av kommandittinnskudd medfrer suspensjon av vedkommende deltakers stemmerett inntil misligholdet er bragt til opphr. De vrige deltakere skal, nr slik situasjon foreligger, ansees avgi stemme for den totale ansvarskapital, sledes at de forholdsmessig avgir stemme for den/de suspenderte deltaker(e).
11. KOMMANDITTANDELSBEVIS - DELTAKERPROTOKOLL . Styret vil etter krav fra den enkelte kommandittist utstede andelsbevis for kommandittandel. Andelsbevis skal, hvis det er utstedt, oppbevares i depot hos forretningsfrer. Deltagere som av spesielle rsaker nsker f utlevert andelsbeviset, vil f dette ved ta kontakt med forretningsfrer. Dersom andelsbevis kreves skal beviset i s fall lyde p deltakerens navn, og inneholde deltakerens registrerte eller private adresse (eventuelt ogs postadresse), foretaksnummer eller fdselsnummer, deltakerens totale innskuddsforpliktelse og hvor stor del av denne som er innbetalt, at utbetaling av innskuddsbelp bare kan skje til den som iflge andelsbeviset er berettiget til motta utbetalingen og at hel eller delvis tilbakebetaling av innskuddet bare kan skje mot kvittering p andelsbeviset. Forretningsfrer skal uavhengig av eventuelle utstedte andelsbevis, srge for at det lpende fres protokoll over deltakerne i Selskapet.
12. OVERDRAGELSE AV ANDEL. Andeler i Selskapet kan ikke overdras uten at styret i Selskapet samtykker til overdragelsen. Samtykke kan bare nektes nr det foreligger saklig grunn. Som saklig grunn regnes blant annet svak konomi hos erververen, eller om erververen av slike eller andre grunner ikke godkjennes av Selskapets bankforbindelser. Styret kan sette som betingelse at overdrageren stiller betryggende sikkerhet for sine forpliktelser overfor Selskapet, se blant annet Skattebetalingslovens 37, 3. ledd. Nektelse av samtykke kan kreves begrunnet skriftlig. Overdragelsen er ikke gyldig fr den nye deltakeren har tiltrdt denne avtale skriftlig. Om en deltager skulle erverve andeler slik at han, direkte eller indirekte blir eier av eller fr kontroll over mer enn [65]% av selskapskapitalen, plikter han straks gi et tilbud til alle vrige deltagere om kjp av deres andeler. Slik tilbudspris skal vre minst like hy som det hyeste vederlag tilbyderen har betalt for andeler i lpet av de siste 6 mneder frem til tilbudsplikten inntrdte og inklusive slikt kjp som utlste tilbudsplikten. Tilbudet skal ha en akseptfrist p 4 uker.
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13. FORHYELSE AV SELSKAPSKAPITALEN. Beslutning om forhye selskapskapitalen kan treffes av selskapsmtet under forutsetning av at deltakere som representerer minst 2/3 av selskapskapitalen stemmer for forslaget. Hver enkelt deltaker har fortrinnsrett, men ingen plikt til tegne seg for en andel av kapitalforhyelsen, og fortrinnsretten tilsvarer hans andel av den eksisterende selskapskapitalen. Hvis den besluttede kapitalforhyelse ikke tegnes fullt ut, har de deltakere som nsker det, fortrinnsrett til tegne seg for restbelpet i samme forhold som deres andel av selskapskapitalen var fr forhyelsen ble besluttet. De deltagere som ikke deltar i kapitalforhyelsen skal kunne utlses av de vrige deltagere etter takst som regulert i 15 i samme forhold som deres andel av selskapskapitalen var fr forhyelsen ble besluttet. Dersom ingen av de vrige deltagere nsker utlse vedkommende, kan Selskapet beslutte utelukking av deltagere som ikke nsker delta i kapitalforhyelsen. Verdsettelse av andelene skjer da ogs etter takst etter bestemmelsene i 15. Omkostningene til takst skal dekkes av den/de som utlser. Slik utlsning skal begjres innen 14 dager etter at kapitalforhyelsen er vedtatt. Deltagere som ikke nsker delta i kapitalforhyelsen og som ikke utlses eller utelukkes blir utvanne.
14. MISLIGHOLD/UTLSNING/TVANGSSALG/UTELUKKING. Den enkelte deltaker kan ikke si opp sitt deltakerforhold eller kreve seg utlst av Selskapet, jfr. selskapsloven 3-25 sammenholdt med 2-32. En deltaker kan kreve utlsning av en annen deltaker nr: a) b) deltakeren ikke innbetaler sin andel av innkalt selskapskapital, eller det er pnet konkurs eller gjeldsforhandling i deltakerens bo, det foretas utlegg, utpanting eller avsetning i vedkommende deltakers eierandel eller han forvrig er ute av stand til dekke sine forpliktelser, eller deltakeren har krenket Selskapet vesentlig ved mislighold av denne avtale, eller mislighold overfor
c)
d) deltakerens forhold medfrer at Selskapet har kommet eller kan komme i sine finanskreditorer,
og forholdet ikke er reparert innen 14 dager etter at han har mottatt varsel herom fra styret eller forretningsfrer. Gjres utlsningsrettene gjeldende av flere, fordeles andelen mellom dem proratarisk etter deres selskapsandel. Nr kravet om utlsning fremsettes skal det omgende holdes takst etter reglene i 15 hvor skipets markedsverdi/utlsningsvederlag fastsettes s fremt ikke partene straks blir enige om utlsningsvederlaget. Den som har fremsatt begjring om utlsning, m innen 14 dager etter at han har mottatt taksten, ta endelig standpunkt til om han vil utlse og i tilfelle foreta betaling innen to uker deretter om partene ikke blir enige om noe annet. Med mindre srlige forhold tilsier en annen fordeling, bres utgiftene til taksten med en halvpart p hver av partene. Ved mislighold, bres alltid utgiftene til takst av misligholderen. Hvor utlsning er krevet av n kommandittist som representerer minst 80% av selskapskapitalen, bres utgiftene til taksten av den som har krevet utlsning. nsker flere av kommandittistene gjre utlsningsrett gjeldende, fordeles andelen forholdsmessig mellom dem. Dersom ingen av deltakerne nsker benytte utlsningsretten, er styret bemyndiget til selge den
misligholdte andel best mulig. Den misligholdende str personlig ansvarlig for den eventuelle rest p innskuddet som mtte forbli udekket etter at salgsomkostninger er fratrukket. En deltaker kan ogs ved skriftlig pbud utelukkes fra Selskapet ved utlsning i de tilfeller som er nevnte i (a) - (d) over, eller nr tungtveiende grunner ellers tilsier utelukking. Utelukking gjennomfres i henhold til Selskapslovens bestemmelser, jfr. Selskapslovens 2-33, 2-36 og 3-26 dog slik at verdien av den andel som eies av den deltager som skal utlses fastsettes etter takst i hht 15.
15. UTLSNINGSVEDERLAG - TAKST. For beregning av utlsningsvederlag og vederlag ved utelukking tas utgangspunkt i estimert markedsverdi ved et regulrt salg av skipene, korrigert for positiv eller negativ verdi av eventuell beskjeftigelse, beregnet som snitt av anslag fra tre internasjonalt anerkjente skipsmeglere, hvorav den/de som utlser og den/de som blir utlst oppnevner en hver, og den siste oppnevnes av de to frste oppnevnte. Dersom disse ikke blir enige, oppnevnes den tredje av Nordisk Skibsrederforening. Dersom en part unnlater oppnevne sin skipsmegler/takstmann, skal denne oppnevnes av Nordisk Skibsrederforening etter begjring av en part. De angitte verdier er bindende og kan ikke overprves. Den beregnede verdien skal: korrigeres fratrekkes fratrekkes for Selskapets vrige aktiva og passiva, og 1,5% salgskommisjon av skipenes verdi iht. taksten, samt NOK 500.000 pr skip i leverings-/ avviklingskostnader, og 15% av skipenes verdi iht. taksten.
16. SALG AV SKIPET. Newcomarine AG eier [ ] av selskapskapitalen. P grunn av Newcomarine AGs spesielle stilling i selskapet kan ikke Newcomarine AG alene beslutte salg av selskapets skip. Deltagere som reprensenterer mer enn [20%] av den selskapskapitalen som kontrolleres av deltagere utenom Newcomarine AS nsker salg av ett eller begge av Selskapets skip kan de fremsette krav om dette skriftlig overforfor styret, som umiddelbart skal instruere disponenten om legge skipene ut for salg med forbehold om selskapsmtets godkjennelse.
Straks det foreligger et ferdigforhandlet tilbud (nedenfor Tilbudet) fra navngitt tilbyder (nedenfor Tilbyderen) skal dette forelegges selskapsmtet som innkalles med 3 dagers varsel. Tilbudet med opplysninger om Tilbyderen skal angis i innkallingen til selskapsmtet. Sfremt minst 25% av den del av selskapskapitalen som ikke representeres av Newcomarine AG, eller dersom Newcomarine AG for sin eierandel sammen med deltagere som representerer ytterligere [15 ] % av selskapskapitalen gir sin tilslutning til det fremsatte bud skal dette aksepteres, dog slik at deltagere som ikke nsker skipene solgt kan forhindre salg ved kreve utlsning av de deltagere som i selskapsmtet har stemt for salg i hht Tilbudet. Slikt krav skal eventuelt fremsettes i selskapsmtet etter at Tilbudet er behandlet og har oppndd ndvendig tilslutning for bli vedtatt. Den/de som krever utlsning, kan ikke ogs stemme mot et salg. Utlsningskravet m omfatte samtlige andeler som i selskapsmtet stemte for aksept av Tilbudet. Deltagere som har stemt for aksept av Tilbudet kan ikke motsette seg utlsning.
17. OPPLSNING. Hvis Selskapets skip blir solgt, skal Selskapets opplses. Avviklingen skal gjennomfres s hurtig som mulig ved at salgssummen, med fradrag av all fellesgjeld fordeles mellom deltageren i forhold til deres andeler i kommandittselskapet.
18. ENDRING AV SELSKAPSAVTALEN. Endring eller fravikelse av denne avtale krever tilslutning fra minst 2/3 av selskapskapitalen.
19 REGISTRERING. Ved hervrende avtale Foretaksregisteret. samtykker deltakerne til at Selskapet og dets deltakere registreres i
Deltakerne samtykker dessuten til registrere alle endringer som flger av Foretaksregisterlovens 4-1, 2. ledd. Selskapet skal dekke utgiftene ved stiftelse og registrering av Selskapet.
20. VOLDGIFT. Tvist i anledning denne avtale avgjres ved voldgift i Oslo etter lov av 14. mai 2004 nr 25 (voldgiftsloven). Hvor av partene oppnevner en voldgiftsmann. De oppnevnte voldgiftsmenn velger en tredje voldgiftsmann, som skal vre formann i voldgiftsretten. Oppns ikke enighet om valg av formann eller unnlater en part oppnevne voldgiftsmann innen 14 dager etter at han har mottatt krav om voldgift, oppnevnes vedkommende av Nordisk Skibsrederforening. Voldgiftsrettene avgjrelse er endelig. Oslo, _____________ 2009 Komplementar:
_____________________ Adriatic Chemical AS
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Kommandittister:
__________________________
__________________________
__________________________
__________________________
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13.3
The Mandate Agreement with the Arranger
MANDATAVTALE Den [] ble flgende avtale (Avtalen) inngtt mellom Adriatic Chemical KS, org.nr. [] (Oppdragsgiver eller Selskapet) og Orkla Finans Kapitalforvaltning AS, org.nr. 981 263 790 (Tilrettelegger). (heretter enkeltvis benevnt som "Part" og i fellesskap som "Partene") 1. 1.1 Bakgrunn Oppdragsgiver har til hensikt gjennomfre en kapitalutvidelse (Transaksjonen) for sikre et kapitaltilfang som gjr det mulig kjpe to kjemikalietankskip som skal sluttes ut p lengre bareboat kontrakter. 1.2 Oppdragsgiver har engasjert Tilrettelegger til bist med tilrettelegge Transaksjone p de betingelser som fremgr av denne Avtalen (Oppdraget). 2. Oppdraget 2.1 Tilrettelegger skal utfre flgende tjenester i forbindelse med Oppdraget: a) Rdgivning med hensyn til transaksjonsstruktur, tidsplan, emisjonskurs, allokering mv, b) Utarbeidelse av informasjonsmemorandum, presentasjonsmateriale og annet materiale som skal utarbeides i forbindelse med Transaksjonene, c) Identifikasjon av potensielle investorer,
d) Markedsfring av Transaksjonene overfor potensielle investorer, e) Innhenting av tilsagn om tegning/bestilling fra investorer i tilknytning til Transaksjonene, f) Praktisk gjennomfring av Transaksjonene,
g) Registrering av kapitalforhyelsene i Foretaksregisteret, registrering av de nye aksjene i Verdipapirsentralen og tilsvarende teknisk bistand. h) Utarbeidelse av eventuelle pressemeldinger i tilknytning til Transaksjonene, og i) 2.2 2.3 Kontakt med Oppdragsgivers juridiske rdgiver Oppdraget medfrer ingen forpliktelse for Tilrettelegger til tegne aksjer eller avgi fulltegningsgaranti eller betalingsgaranti i forbindelse med Transaksjonene. Avtalen omfatter ikke daglig ledelse, drift og lpende forvaltning av Selskapet, som er regulert i separat managementavtale med Tilrettelegger. Fullmakter Selskapets styre skal srge for at Tilrettelegger (relevante personer hos Tilrettelegger) tildeles fullmakter eller liknende, slik at disse kan opptre overfor Selskapets eventuelle motparter, myndigheter og andre tredjeparter i forbindelse med gjennomfringen av de aktuelle Oppdragene etter Avtalen. Selskapet tildeler herved Tilrettelegger slik fullmakt. Vederlag Tilrettelegger skal ha rett til et vederlag tilsvarende 1,5% prosent av kjpsprisen for skipene (henholdsvis EUR 8,100,000 for M/T Brvig Mistral og EUR 8,500,000 for M/T Vedrey Ydrehall). Dersom Avtalen sies opp uten at en pbegynt Transaksjon er blitt gjennomfrt, og Oppdragsgiver innhenter ny egenkapital i lpet av en periode p seks mneder fra det tidspunktet Avtalen opphrte gjelde, skal Tilrettelegger likevel ha krav p vederlag i henhold til pkt. 0. Dersom det pbelper merverdiavgift eller andre offentlige avgifter p vederlaget eller andre
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3. 3.1
4. 4.1 4.2
4.3
4.4
belp Tilrettelegger har krav p etter denne Avtale, skal Oppdragsgiver dekke dette. Vederlag etter denne bestemmelsen forfaller til betaling umiddelbart etter at den aktuelle kapitalforhyelsen er registrert i Foretaksregisteret. Utgiftsdekning Oppdragsgiver skal dekke de utgifter Tilrettelegger pdrar seg og/eller Selskapet i forbindelse med Oppdraget, herunder utgifter til juridisk og regnskapsmessig bistand. Slike utgifter skal betales etter regning uavhengig av om Transaksjonene gjennomfres eller ikke. Due diligence - informasjon Tilrettelegger skal gis anledning til gjennomfre en begrenset juridisk og regnskapsmessig gjennomgang av Oppdragsgiver. Oppdragsgiver skal gi Tilrettelegger all den informasjon Tilrettelegger med rimelighet har behov for i forbindelse med Oppdraget. Varighet Avtalen lper frem til Selskapet er opplst og avviklet. Avtalen er ikke gjenstand for oppsigelse med mindre det foreligger et vesentlig kontraktbrudd fra en av Partene. Skadeslsholdelse Oppdragsgiver skal holde Tilrettelegger og Tilretteleggers ansatte, styremedlemmer og rdgivere, skadeslse for ethvert direkte eller indirekte, tap, krav, skade, kostnader eller ansvar, herunder men ikke begrenset til utgifter til juridisk bistand, som de mtte bli pfrt i forbindelse med Oppdraget. Oppdragsgiver forpliktelse etter pkt. 0 gjelder ikke dersom den aktuelle personen har opptrdt forsettlig eller grovt uaktsomt. Oppdragsgivers ansvar Oppdragsgiver skal sikre at Transaksjonene gjennomfres p bakgrunn av lovlig fattede vedtak i Oppdragsgivers styrende organer. Oppdragsgivers styre er ansvarlig for eventuelt informasjonsmemorandum og annet presentasjonsmateriale som utarbeides i forbindelse med Transaksjonene, og vil i den forbindelse ske juridisk bistand fra eksterne rdgivere. Det vil i tegningsmaterialet bli inntatt en ansvarsfraskrivelse fra Tilrettelegger i overensstemmelse med vanlig praksis i det norske markedet. Tilrettelegger kan kreve at Oppdragsgivers styre og ledelse avgir en fullstendighetserklring i henhold til vanlig praksis i det norske markedet. Oppdragsgiver skal umiddelbart varsle Tilrettelegger om forhold som vil kunne medfre at det fremsettes erstatningskrav mot Tilrettelegger. Materiale som utarbeides av Tilrettelegger i forbindelse med Oppdraget kan av Oppdragsgiver ikke gis til uvedkommende uten Tilretteleggers skriftlige forhndssamtykke.
5. 5.1
6. 6.1 6.2
7. 7.1
8. 8.1
8.2
9. 9.1 9.2
9.3
9.4 9.5
10. Ansvarsbegrensning 10.1 Tilrettelegger er kun ansvarlig for eventuelle skader eller tap som blir pfrt Oppdragsgiver i forbindelse med Oppdraget dersom Oppdragsgiver kan bevise at skaden eller tapet skyldes forsettlighet eller grov uaktsomhet ved Tilretteleggers gjennomfring av Oppdraget. Tilretteleggers ansvar skal uansett vre begrenset til den det vederlag som Tilrettelegger selv har mottatt i forbindelse med Oppdraget. Tilrettelegger skal ikke under noen omstendighet vre ansvarlig for indirekte skader og/eller tap eller andre flgeskader/tap som Oppdragsgiver mtte bli pfrt. 11. Lydbndopptak 11.1 Tilrettelegger har rett, men ikke plikt, til ta opp inngende og utgende telefonsamtaler p lydbnd i henhold til de til enhver tid gjeldende rettsregler. Tilretteleggers lydbndopptak slettes rutinemessig etter et tidsrom fastsatt av Tilrettelegger. Lydbndopptak vil kunne begjres utlevert av offentlig myndighet i medhold av lov eller forskrift.
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12. Konfidensialitet 12.1 Tilrettelegger forplikter seg til holde konfidensielt for uvedkommende all ikke-offentlig informasjon av konfidensiell karakter om Oppdragsgiver som Tilrettelegger mottar fra Oppdragsgiver i forbindelse med Oppdraget. Tilrettelegger skal dog ikke vre forhindret fra oppfylle lovplagt opplysningsplikt. 12.2 Tilrettelegger skal ha rett til gjre sin rolle i Transaksjonene kjent for offentligheten. 13. Alminnelige forretningsvilkr 13.1 Avtalen utfylles av Tilretteleggers alminnelige forretningsvilkr som inngr som en integrert del av Avtalen. Ved motstrid mellom bestemmelser i Avtalen og de alminnelige forretningsvilkrene, skal Avtalen g foran. 14. Tvister 14.1 Denne Avtalen er underlagt norsk rett. Tvister som mtte oppst som flge av eller med tilknytning til denne Avtale, skal Partene forske lse i minnelighet. Dersom Partene ikke kommer til enighet, skal tvisten lses ved voldgift i Oslo i samsvar med bestemmelsene i voldgiftsloven. 14.2 Forhandlingene for voldgiftsretten og rettens avgjrelse skal vre konfidensielle. Voldgiftsrettens avgjrelse er endelig. -o0o-
Adriatic Chemical KS ________________________ Sted/dato:
Orkla Finans Kapitalforvaltning AS ________________________ Sted/dato:
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13.4
The Corporate Management Agreement

FORRETNINGSFRERAVTALE
Mellom Adriatic Chemical KS og (heretter benevnt Selskapet) og Orkla Finans Kapitalforvaltning AS (Forretningsfrer), heretter sammen benevnt (Partene) er det inngtt avtale om at Orkla Finans Kapitalforvaltning AS engasjeres som Forretningsfrer for Selskapet p flgende betingelser : 1. Avtalens bakgrunn. Selskapets forml er eie, forest drift, befraktning og salg av skipene MV Brvig Mistral, og MV Vedrey Ydrehall (Skipene), samt annen virksomhet tilknyttet dette. Forretningsfrere skal ikke utfre eller vre ansvarlig for oppgaver som pligger skipets disponent i henhold til disponentavtale (Disponentavtalen) mellom Selskapet og Bergshav Management AS (Disponenten) datert []. Forretningsfrer skal i utfrelsen av sine oppgaver flge de retningslinjer og plegg som Selskapets styre mtte gi. Dette inkluderer retningslinjer og plegg gitt av Selskapsmtet i kommandittistselskapet (Selskapsmtet) eller som flger av kommandittselskapsavtalen datert [] med senere endringer (Selskapsavtalen). 2. Forretningsfrers arbeidsoppgaver / ansvar. Sprsml knyttet til saker som etter Selskapets forhold er av uvanlig art eller av stor betydning skal forlegges Selskapets styre, og / eller Selskapsmtet. Forretningsfrer skal vre ansvarlig for : Utve sekretrfunksjon og innkalle til styremter og/eller Selskapsmter i Selskapet og praktisk gjennomfre de nevnte mter, herunder skrive referat fra de respektive mter. Styreog Selskapsmtene forutsettes avholdt i Norge. Fre og gjre opp Selskapets regnskaper i overensstemmelse med god regnskapsskikk og srge for at regnskapene blir revidert av Selskapets valgte revisor. rsregnskaper og rsberetninger skal legges frem for styret og Selskapsmtet innen 31. mars pflgende r. Innen rsskiftet utarbeide utkast til resultat- og likviditetsbudsjett for det pflgende r. Etter anmodning fra Selskapets styre/Selskapsmte orientere om befrakters finansielle stilling. Sende ut halvrsregnskaper, rsregnskaper og resultat- og likviditetsbudsjetter til Selskapets kommandittister (urevidert halvrsregnskap sendes ut senest 90 dager etter utgangen av halvret). Flge opp Selskapets lneavtale(r). Ske forvalte Selskapets midler p en slik mte at maksimal rente p overskuddslikviditet oppns uten utsette Selskapet for undig risiko. Etter instruks fra Selskapets styre/Selskapsmte, bist ved innkalling av kommandittkapital i samsvar med kommandittselskapsavtalen.
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Betale alle utgifter og innkassere alle inntekter for Selskapets regning, her dog unntatt bareboat-hyren fra befrakter som ivaretas av Disponenten. Holde Selskapets midler p separate konti i bank eller p annen betryggende mte mot frsteklasses sikkerhet. Informere styret i Selskapet dersom det anses pkrevd med kalle inn kapital fra deltakerne eller med forhyelse av selskapskapitalen, og besrge den praktiske gjennomfringen av slik kapitalinnkalling/kapitalforhyelse. Selskapet er berettiget til foreta bokettersyn hos Forretningsfrer. 3. Forretningsfrers vederlag og utgiftsdekning. Selskapet betaler Forretningsfreren en godtgjrelse p EUR 19.250 per skip per. r fra avtaleinngelse. Godtgjrelsen betales forskuddsvis den 10. hvert halvr, frste gang for perioden frem til 30. juni 2009. Dersom Selskapet erverver flere skip enn angitt under punkt 1, skal honoraret reforhandles. Dersom Selskapet selger ett av Skipene, blir honoraret for det gjenvrende Skipet justert til EUR 25.000 per r. Honoraret reguleres rlig per 1. januar i henhold til kningen i Konsumprisindeksen (KPI), frste gang 01.01.2010 basert p kningen i KPI fra 15.11.2008 til 15.11.2009. I tillegg til honoraret tilkommer eventuelt merverdiavgift i henhold til de til enhver tid gjeldene satser. Forretningsfrer skal dekke alle kontorholds- og administrasjonsutgifter, inkludert alle kommunikasjonsutgifter. Selskapet skal dog dekke reiseutgifter, utgifter til revisjon, eventuell juridisk bistand og annen sakkyndig bistand, samt utgifter i forbindelse med utarbeidelse og utsendelse av deltagerinformasjon m.v. Videre skal Selskapet dekke andre utgifter Forretningsfrer mtte ha ved utfrelse av srskilte oppgaver nr dette er forhndsklarert med Selskapets styre. I den grad Forretningsfrer utfrer arbeid utover det som er nevnt i punkt 2, skal det godtgjres srskilt for dette. Forretningsfrer kan - for egen regning - forest utkontraktering av oppgaver knyttet til blant annet Selskapets lpende regnskapsfrsel samt utarbeidelse av halvrsregnskaper, rsregnskaper og ligningspapirer. 4. Provisjoner, kommisjoner og rabatter. Alle provisjoner, returkommisjoner, adressekommisjoner, rabatter og lignende som Forretningsfrer oppnr p vegne av Selskapet skal godskrives Selskapet. Slik avgrensning gjelder dog ikke regulre kommisjoner, vederlag m.m. som Forretningsfrer mottar for utfrt arbeid. 5. Varighet og oppsigelse av avtalen. Avtalen trer i kraft fra og med dato for avtaleinngelse. Partene kan si opp denne avtale med 6 mneders skriftlig varsel dog slik at avtalen tidligst kan sies opp med virkning fra 31.12.2010 med mindre skipene blir solgt eller ved total loss. Selskapet kan dog bare si opp avtalen hvis det er besluttet p Selskapsmte i henhold til bestemmelsen i [] i selskapsavtalen for Adriatic Chemical KS. Selskapet kan imidlertid si opp avtalen med yeblikkelig virkning dersom Forretningsfrer vesentlig misligholder sine forpliktelser. Avtalen opphrer 6 mneder etter at det i kommandittselskapsmte er fattet vedtak om opplsning av Selskapet. Forretningsfreren forplikter seg til flge opp og sluttbehandle lpende saker. Godtgjrelse for behandling av lpende saker utover 6 mnedersperioden blir dekke etter avtale, avhengig av hvor lenge slikt arbeid vil vare. 6. Overdragelse av avtalen.
Denne avtale kan ikke i sin helhet - overdras med mindre dette p forhnd er godkjent av Selskapsmtet. 7. Forretningsfrers erstatningsansvar. Forretningsfrer skal ikke vre erstatningsansvarlig overfor Selskapet og/eller deltagerne utover ett rlig forretningsfrerhonorar, med mindre det foreligger grov uaktsomhet eller forsett. 8. Markedsfring. Forretningsfrer har i sin egen markedsfring rett til vise til resultater, omsetning, investeringshistorikk og lignende til Selskapet. 9. Force Majeure. Streik, lock-out, blokade eller annet som Partene ikke rr over, s som krig, opptyer, brann, eksplosjon eller inngripen av offentlig myndighet, fritar Partene s vel fra oppfylle sine forpliktelser iht. denne avtale sfremt de ikke kan oppfylles uten unormalt hye kostnader. 10. Tvistelsning. Denne avtalen er underlagt norsk rett. Eventuelle tvister skal skes lst i minnelighet. Oppns ikke enighet, skal tvisten lses etter norsk rett ved voldgift i Oslo i samsvar med reglene i lov om voldgift. Dersom summen av alle krav er mindre en NOK 300.000, avgjres tvisten av n voldgiftsdommer oppnevnt av Partene i fellesskap, men i mangel av enighet inne 14 fjorten- dager fra oppnevnelse er krevd skal dommeren oppnevnes i henhold til lov om voldgift 13 fjerde ledd. Denne Forretningsfreravtalen er utferdiget i 2 to - eksemplarer, hvorav Partene fr hvert sitt. Oslo, []
Orkla Finans Kapitalforvaltning AS
________________
__________________
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13.5
The Commercial Management Agreement

DISPONENTAVTALE
Mellom ADRIATIC CHEMICAL KS (Selskapet) og BERGSHAV MANAGEMENT AS (Disponent) er det inngtt flgende avtale: 1. BERGSHAV MANAGEMENT AS ansettes som disponent. 2. Disponenten skal generelt bist i den daglige ledelse av Selskapet og skal flge de retningslinjer og plegg som Selskapet p rsmte eller ved komplementaren har gitt eller som flger av kommandittselskapsavtalen datert [] med senere endringer. Disponenten skal ikke utfre eller vre ansvarlig for de oppgaver som pligger Selskapets forretningsfrer i henhold til forretningsfreravtale (Forretningsfreravtalen) mellom Selskapet og Orkla Finans Kapitalforvaltning AS avd. Management som forretningsfrer (Forretningsfrer) datert []. 3. Disponenten skal vre spesielt ansvarlig for flge opp: Bareboatcertepartier inngtt mellom Selskapet og Dinamarin d.o.o, herunder kreve inn mnedlig bareboathyre Forest og arrangere tekniske inspeksjoner av Skipene, normalt p rlig basis. At Skipene til enhver tid er forsvarlig forsikret, herunder at alle krav til forsikringer i Selskapets lneavtaler er oppfylt. Flge opp Selskapets forretningsfrer. forpliktelser overfor lngivere i samarbeid med Selskapets
Disponenten skal ikke utfre eller vre ansvarlig for utfrelsen av oppgaver som etter Forretningsfreravtalen tilligger Forretningsfrer. Eventuelle uklarheter om oppgavefordeling mellom Disponent og Forretningsfrer avgjres av Selskapets styre. 4. Selskapet betaler Disponenten en godtgjrelse p EUR 20,000 pr. skip pr. r fra levering av de respektive skip under bareboatcertepartiene. Godtgjrelse betales pro rata forskuddsvis den 1. hvert halvr, frste gang for perioden frem til 1 Juni 2009]. Ved terminering av avtalen i henhold til pkt. 8 nedenfor skal Selskapet kun betale godtgjrelse frem til opphrstidspunktet. Honoraret reguleres rlig per 1. januar i henhold til kningen i Statistisk Sentralbyrs Lnnsindeks , frste gang 01.01.2010 basert p kningen i denne fra 15.11.2008 til 15.11.2009. I tillegg til honoraret tilkommer eventuell merverdiavgift i henhold til de til enhver tid gjeldene satser. Disponenten skal dekke alle kontorholds- og administrasjonsutgifter, hvori inkludert alle kommunikasjonsutgifter. Selskapet skal dog dekke utgifter til revisjon, eventuell juridisk bistand og annen sakkyndig bistand. Videre skal Selskapet dekke andre utgifter Disponenten mtte ha ved utfrelse av srlige oppgaver nr dette er forhndsklarert med Selskapets styre. Flgende dekkes srskilt sfremt det er avtalt med og p forhnd godkjent av styret: a) Ndvendige mte og reiseutgifter i forbindelse med prosjektet og utvelse av
Disponent funksjonen. b) Utgifter til spesiell ekstern teknisk, juridisk og annen sakkyndig bistand samt kontingenter. I den grad disponenten gjr arbeid utover det som er nevnt i punkt 3 skal det godgjres srskilt for dette.
5. Partene kan si opp denne avtale med 6 mneders skriftlig varsel dog slik at avtalen tidligst kan sies opp med virkning fra 1 Januar 2010, med mindre skipene blir solgt eller ved total loss. Selskapet kan dog bare si opp avtalen hvis det er besluttet p Selskapsmte i henhold til bestemmelsen i 10 i selskapsavtalen for ADRIATIC CHEMICAL KS. Avtalen opphrer 3 mneder etter at det i kommandittselskapsmte er fattet vedtak om opplsning av Selskapet. Disponenten forplikter seg til flge opp og sluttbehandle lpende saker. Godtgjrelse for behandling av lpende saker utover 3 mnedersperioden blir dekke etter avtale, avhengig av hvor lenge slikt arbeid vil vare. Etter utlp av bareboatcertepartiene skal disponentavtalen reforhandles for reflektere Disponentens nye ansvarsomrder som kommersiell og/eller teknisk manager. Selskapet kan likevel si opp avtalen med yeblikkelig virkning dersom Disponenten vesentlig misligholder sine forpliktelser. 6. Alle provisjoner, returkommisjoner, adressekommisjoner, rabatter og lignende som Disponenten oppnr p vegne av Selskapet skal godskrives Selskapet. 7. Disponenten skal ikke vre erstatningsansvarlig overfor Selskapet og/eller deltagerne utover ett rlig disponenthonorar, med mindre det foreligger grov uaktsomhet eller forsett. Selskapet skal holde Disponenten skadesls for ethvert krav mot skipet eller Disponenten i forbindelse med de oppgaver som utfres som flge av denne avtale. Selskapet skal likevel ikke ha ansvar for slike krav dersom Disponenten har opptrdt grovt uaktsomt eller forsettlig har misligholdt sine forpliktelser iht. denne avtale. Hverken Selskapet eller Disponenten er ansvarlig for forsinket eller mangelfull oppfyllelse av sine plikter etter denne avtale forsvidt dette er forrsaket av forhold som med rimelighet m antas ligge utenfor deres kontroll Disponenten har ikke ansvar for forhold som flge av krig, streik, boikott, brann eller tilsvarende force majeure hendelser utenfor Disponentens kontroll. 8. Tvist i denne avtale avgjres ved voldgift i Oslo etter rettergangslovens regler. Hver av partene oppnever en voldgiftsmann, og de oppnevnte voldgiftsmenn velger en tredje voldgiftsmann som skal vre formann i voldgiftsretten. Oppns ikke enighet om valg av formann, oppnevnes han av Justitiarius i Oslo Byrett. 9. Denne Disponentavtale er utferdiget i 2 - to - eksemplarer, hvorav partene fr hvert sitt.
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[Sted], [Dato] ADRIATIC CHEMICAL KS ______________________________ BERGSHAV MANAGEMENT AS _____________________
Page 76 of 76

Adriatic Chemical KS: Invitation To Subscribe For Partnership Shares in

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Invitation to subscribe for partnership shares in

Investment amount: Paid in capital: Uncalled capital:

EUR 18,020,000 EUR 4,820,000 EUR 5,500,000

Total leverage: Expected IRR:

Subscription period: 9 March 09:00 hrs to 16 March 16:00 hrs.

Orkla Finans Kapitalforvaltning AS

4.1 4.2 4.3

THE BAREBOAT CHARTERER DINAMARIN

THE COMMERCIAL MANAGER STRUCTURE AND FINANCING

AGREEMENTS ENGLISH SUMMARY

THE MARKET THE OFFER

Statement from the Arranger

Oslo, 08 March 2009 Orkla Finans Kapitalforvaltning AS

Zagreb 08 March 2009 Dinamarin d.o.o./ Dioki d.d.

Statement from legal counsel

Oslo 08 March 2009 Vogt & Wiig AS

Bareboat Charterer Corporate Management Agreement

Commercial Management Agreement

DNV EUR General Partner

Information Memorandum IRR Limited Partners

NAV NOK Orkla Finans Owner

Partnership Shares Project Price

2.2 Important investor information

Dioki d.d (Guarantor)

Dinamarin d.o.o BB Charterer

4 + 2 yrs CoA/TC INA (COA Charterer)

Calculation basis and due date of payment

Broker Commission Bare-boat agreement

Shipbroker C. Clausen & Company

Commercial management fee

Corporate Management fee

Orkla Finans Kapitalforvaltning AS, management department.

EUR EUR EUR

2.3 The offer

2.4 The Arranger - Orkla Finans Kapitalforvaltning AS

3.2 Legislative environment including taxation

3.3 Interest rate and currency risk

3.6 Potential conflict of interest

3.7 Market risk

3.8 Residual risk

3.9 Bareboat Charterers performance

DIMENSIONS LOA LBP Beam 92.86 m 86.65 m 14.10 m

4.2 Vessel registration, condition, upgrades and flag

4.3 Delivery/ Time schedule

5 The Bareboat Charterer Dinamarin

Dioki Holding AG (Switzerland)

Dioki d.d (Croatia)

Diokiplastica d.o.o (Croatia)

Adria Oil s.p.a. (Italy)

Kijac Nekretnine d.d (Croatia)

DINAPetrokemilja d.d (Croatia)

Dinamarin d.o.o. (Croatia)

Page 19 of 76 Photo of Diokis terminal in Omisalj, Croatia

5.3 Business model

5.4 Production Capacities

5.6 Financials Dioki - Guarantor

Non-Current Assets Total Assets Total Equity

1332,633 1,824,166 1,040,458

1,224,653 1,673,485 1,041,444

1,202,581 1,673,485 1,002,664

1,131,205 2,049,256 706,521

1,013,076 1,664,488 733,759