Tabreed 06 Prospectus - London Stock Exchange

Lease Agreement
Date. The balance shall be payable to the Contractor in further
instalments in relation to any Plant (or part thereof) delivered, as
more fully set out in the Istisna’a Agreement.
Under the terms of a lease agreement to be entered into between the
Issuer as lessor (in such capacity as ‘‘Lessor’’) and the Lessee (the
‘‘Lease Agreement’’) Tabreed undertakes to lease each Delivered
Plant under the Istisna’a Agreement from the date each such
Delivered Plant is delivered under the Istisna’a Agreement up to the
Scheduled Dissolution Date, unless the Lease Agreement is
terminated earlier.
Under the terms of the Lease Agreement, the Lessee agrees to use
the Delivered Plants at its own risk and to bear the entire risk of
loss of or damage to the Delivered Plants or any part thereof arising
from the negligent or improper usage or operation thereof by the
Lessee.
The Lessee shall, at its own cost and expense, be responsible for the
performance of all Ordinary Maintenance and Repair required by
the Delivered Plants. ‘‘Ordinary Maintenance and Repair’’ means all
repairs, replacements, acts and maintenance and upkeep works
required for the general usage and operation of the Delivered Plants
and to keep, repair, maintain and preserve the Delivered Plants in
good order and condition, and in compliance with such
maintenance, repair and upkeep standards and procedures
generally expected in the ordinary course of business.
The Lessor shall be responsible for the performance of all Major
Maintenance, and shall procure that the Service Agent, in
accordance with the terms and conditions set out in the Service
Agency Agreement, shall perform all Major Maintenance. ‘‘Major
Maintenance’’ means all repairs, replacements, acts and
maintenance required in respect of the Delivered Plant other than
Ordinary Maintenance and Repair.
The rental payments under the Lease Agreement (the ‘‘Rentals’’)
will be an amount of:
(i) in respect of each Rental Payment Date falling in the period
from and including the Closing Date up to and excluding the
Completion Date, the Rental Amount less the Security
Amount;
(ii) in respect of the Rental Payment Date falling on the
Completion Date, the Rental Amount plus the aggregate of
all Security Amounts; and
(iii) in respect of all Rental Payment Dates falling in the period
from and excluding the Completion Date up to and including
the Scheduled Dissolution Date, the Rental Amount.
The Lessee will be obliged to pay Rentals to the Lessor on the
second Business Day before each Periodic Distribution Date.
‘‘Rental Amount’’ means, in relation to each relevant Payment
Period, the amount calculated in accordance with the following
formula:
D
A 6 (L + M) 6 —— where
360
A is US$200,000,000
L is LIBOR
M is 1.25 per cent. per annum
D is the actual number of days in each Payment Period
13