January 8 2006, a Heads of Agreement concerning a sale and lease back deal was signed between Ship Finance International Limited (SFL) and Consafe Offshore AB (publ) (Consafe) where SFL should purchase Safe Concordia at a price of USD 185 million and Consafe should charter the vessel back on a 30 years period. In addition to an agreed day rate the agreement included a Profit Sharing clause giving SFL a 17.5 percent profit sharing after relevant cost had been deducted.
According to a mutual understanding a termination contract was entered on March 15, 2006 where Consafe and SFL agreed to cancel the agreement.
During the fine tuning of the contract the parties agreed that it was in mutual interest to cancel the heads of agreement and not conclude the deal. The parties agreed to keep a dialog with respect to potential future projects together.
Hamilton, Bermuda
March 17, 2006