Date of Report: | October 2, 2014 | |||
Delaware
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0-17264
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20-2876380
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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350 Fifth Avenue, 48 th Floor, New York, N.Y. | 10118 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant's telephone number, including area code: | (212) 563-4141 |
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Written communication pursuant to Rule 425 under the Securities Act;
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act;
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Pre-commencement communication pursuant to rule 14d-2(b) under the Exchange Act;
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Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act.
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i.
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The office of Royal Court Affairs (“RCA”), which owns 25% of Omagine LLC, and
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ii.
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Two subsidiaries of Consolidated Contractors International Company, SAL (“CCIC”), which collectively own 15% of Omagine LLC.
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Exhibit No.
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Description
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Omagine, Inc.
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(Registrant)
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Dated: October 2, 2014
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By:
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/s/ Frank J. Drohan | |
Frank J. Drohan,
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Chairman of the Board,
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President and Chief Executive Officer |
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BETWEEN:
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1)
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THE GOVERNMENT OF THE SULTANATE OF OMAN
, as represented by the Ministry of Tourism (the “Government”); and
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2)
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OMAGINE LLC.,
a limited liability company duly incorporated under the laws of the Sultanate of Oman, having its registered office at P O Box 708, Madinat Sultan Al Qaboos, Postal Code 115, Sultanate of Oman (the “Project Company”);
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WHEREAS:
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A.
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The Government through the Ministry of Tourism wishes to promote the development of hotel and tourism facilities in the Sultanate of Oman;
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B.
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The Founder Shareholders who, for the purpose of carrying out the Project, have incorporated the Project Company and wish to utilise their specialised knowledge of, and expertise and experience in, the development, marketing, operation, management, construction, planning, sale and leasing of residential and tourist complexes, hotels, marinas and related facilities for the Project;
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C.
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The Government has designated the Project as an Integrated Tourism Complex development project in accordance with the Law and the Approval for Integrated Tourism Complex in SCHEDULE 3;
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D.
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The Parties have agreed to enter into this Development Agreement to (i) oblige the Project Company to promote tourism in Oman by completing the Project in accordance with this Development Agreement, (ii) to complete the Project, including the Minimum Build Obligations, and (iii) grant the Project Company sufficient legal rights with respect to the Project Area so that it can fully utilise, plan and develop the Project and construct, finance, operate, manage, maintain, market, lease and sell Buildings and Units on the terms and conditions as set out hereunder and in all cases subject to the Law.
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DEFINITIONS AND INTERPRETATION
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Abandonment
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means, except to the extent permitted or excused hereunder, the cessation of performance of activities by the Project Company.
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Accession Agreement
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means an agreement with a Third Party Developer substantially in the form attached at SCHEDULE 15 or in such other form as the Government may reasonably require.
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Affiliate
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means with respect to any person, any other person that, directly or indirectly, (a) owns or who has Voting Control over the first person, (b) is owned by the first person, or such first person has Voting Control over such other person, or (c) is commonly owned or under common Voting Control with the first person. For the purposes of this definition, (a) the term “own” or “owned” means ownership of more than 50% of the equity interests or rights to distributions on account of equity of the person in question and (b) the term “Voting Control” means the power to direct the management or policies of the first person, whether through the ownership of voting securities, by contract, or otherwise; provided however that (i) the Project Company shall not be considered to be an Affiliate of any of the Parties nor shall it be considered to be an Affiliate of an Affiliate of a Party and (ü) Private Sector Utility Companies providing Private Sector Public Infrastructure and Utilities shall not be considered Affiliates of the Government.
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Anticipatory Breach
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has the meaning given such term in Clause 36.
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Appeal Notice
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has the meaning given such term in Clause 17.4.
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Approvals
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means all Project Company Licences and Permits, consents, approvals or authorizations required to be obtained in writing from the Government or any Government Authority by the Project Company in respect of the Project and includes the approval by the Government of the Plans, the Final Master Plan, and any other approvals required pursuant to this Development Agreement, as such requirements may be varied from time to time pursuant to this Development Agreement. The terms “Approved” and “Approval” shall be construed accordingly.
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Approval Waiver
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means a lawfully granted written waiver by the Government of a Project Company obligation to obtain an Approval, such that with respect to the subject matter contemplated by such Approval (the “Matter”), the Project Company:
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Best Efforts
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means the efforts that could reasonably be expected from a reputed development company in performing its obligations under the Development Agreement applying Best International Practices.
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Best International Practices
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means the exercise of that degree of professional skill, diligence, prudence and foresight as would reasonably and ordinarily be expected from a skilled, qualified and experienced property development entity responsible for carrying out responsibilities and discharging operations of a type similar to the Project Tasks and complying with those practices, methods, equipment, specifications and standards of management, safety and performance, as the same may change from time to time, as are commonly used by professional organisations carrying out such tasks in connection with facilities of a type and size similar to the Project, which in the exercise of reasonable judgement and in light of the facts known at the time a decision was made, are considered economically and financially prudent, safe and professionally acceptable practices. Best International Practices are not intended to be limited to the optimum practice or method to the exclusion of all others, but rather to include all reasonable and prudent practices and methods.
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Books and Records
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has the meaning given such term in Clause 23.1.
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Building
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means any residential, commercial or other type of building, erection or structures constructed or to be constructed on a Plot.
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Business Day
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means any day, other than a Friday, Saturday or public holiday, on which banks in Oman are open for business.
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Change of Control
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means the occurrence of any one of the following events without the prior written approval of the Government:
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Change of Law
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means any of the following events occurring after the Execution Date as a result of any action by the Government affecting all or any part of the Project Area, a Development, the Project Company or the Project Company’s rights or obligations under this Agreement:
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Change of Law Notice
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has the meaning ascribed to it in Clause 19.1.
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Change of Law Termination Notice
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has the meaning ascribed to it in Clause 19.6 (d).
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Civil Defence Facilities
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means all buildings, equipment, vehicles, and other materials specified in SCHEDULE 9 (i) which are fully owned by the Government and required for the purposes of enabling the Civil Defence Services to be provided by the concerned organisations in respect of the Project, (ii) which shall all be located either in the vicinity of the Project Area or in the Project Area at the discretion of the organizations providing the Civil Defence Services, and (iii) which shall be provided at the expense of the Project Company.
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Civil Defence Services
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means the provision by the Government or (to the extent authorized by the Government) concerned organisations of Government provided services for the policing, fire fighting, security, emergency rescue and ambulance services provided for the benefit of the inhabitants and users of the Project Area and all facilities situated therein.
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Claim
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has the meaning given such term in Clause 15.10.1.
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Code of Practice
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means the code of conduct, guidelines, practices and procedures in respect of the exercise of the rights of the Project Company under Clause 5.1.3, the management by the Project Company of the Contractors and all of the matters referred to and which are set out in SCHEDULE 21.
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Commercial Government Properties
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means properties owned by the Government and which are utilized for commercial purposes.
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Commercial Unit
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means any Unit which is not a Residence Unit.
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Community Development Plan
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means the development plan of the Project Company for the development and promotion of the local community in the vicinity of the Project Area as detailed in SCHEDULE 10.
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Community Facilities
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means, within the Project Area, any schools, libraries, colleges, museums, community halls, hospitals, clinics, medical centres, mosques, parks, landscaping, day care centres or nurseries, play areas and other facilities or amenities provided for the public, any section of the public or any community forming part of the population residing, working in or using the Project.
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Community Support
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means the process by which the Project Company and its Affiliates use their Best Efforts to: (a) give preference to Omani goods and services, (b) carefully consider those persons and companies who reside in the vicinity of the Project Area for employment and contracts for the provision of goods and services and (c) initiate schemes to enhance the business and employment opportunities for the companies and residents in the vicinity of the Project Area, all as set out in SCHEDULE 11.
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Completion Certificate
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means a written certificate issued by the Consultant and Approved or granted an Approval Waiver with respect thereto which attests to the Substantial Completion of the Minimum Build Obligations, Specific MBOs, Project Company Infrastructure and Utilities, Building, Unit, Works, or other such construction which is the subject matter of such certificate.
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Consequential Loss
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means any indirect or consequential loss or damage suffered by a Party, including loss of operation or down time costs, loss of profit, loss of opportunity, loss of contract, loss of goodwill, where such loss or damage liability arises from the conduct of the other Party which is not in accordance with this Development Agreement.
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Construction Schedule
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means the construction schedule prepared by the Project Company, as may be updated from time to time, which sets out all the phases of the Project and the work which shall be undertaken to achieve completion of all the construction elements of the Project, incorporating all Minimum Build Obligations and all non Minimum Build Obligations.
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Contaminants
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means any substance alone or in combination with any other substance that is capable of causing harm to human health, the Environment and which may be in the fabric of any buildings or other manmade structures in, on or under land including waste or ordinance.
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Consultant
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means a specialised independent consultant on the one hand appointed by the Project Company for the verification of the Minimum Build Obligations and on the other hand appointed by the Project Company for the verification of the Project Company Infrastructure and Utilities, Buildings, Units and Works, who shall have a professional duty of care to perform such tasks in accordance with the professional standards of such consultant’s profession.
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Contractors
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means any contractor, construction or project manager, builder, building contractor, trade contractor, supplier, operator, consultant or other Person and all of their respective sub-contractors contracting with the Project Company, a Third Party Developer or a Third Party and carrying out or managing the carrying out of construction or civil engineering works, any service (consultancy or otherwise), supply of materials, construction, operation, maintenance or other activity related to the Development of the Project.
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Coverage
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has the meaning ascribed to it in SCHEDULE 4.
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Created Waterways
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means those canals, water channels and other waterways situated in the Project Area and which have been or are to be created for the purposes of the Project and which are identified and described more particularly as such in the Layout Plan and the Final Master Plan.
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Customary Rights
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means the traditional, cultural and customary rights, practices and activities enjoyed by the local Omani nationals, including without limitation, fishing rights, fishing access, rights to fishing grounds; rights to graze animals; rights to graveyards; rights to waterways; rights to movements and rights to biological diversity and natural resources in the vicinity of the Project Area or in the waters of the Sea Area.
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Day
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means a period of twenty-four (24) consecutive hours beginning 00.00 hours and ending on 24.00 hours in Oman.
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Development Control Plan Framework
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or DCPF
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means the “Development Control Plan Framework for Tourism Development Projects” dated 2010 and prepared by the Ministry of Tourism in coordination with other concerned Government Authorities.
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Development or Develop
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means, in relation to the Project or part thereof, the carrying out and completion of the works in respect of the development of the Project in accordance with the Development Control Plan, Final Master Plan and Standards pursuant to this Development Agreement.
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Development Control Plan or DCP
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means the development control plan as set out in SCHEDULE 13, as amended from time to time in accordance with this Development Agreement.
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Direct Agreement
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means an agreement entered into between the Government and any Lenders pursuant to this Agreement, the principles of which are set out in SCHEDULE 20.
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Dispute
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means any dispute, claim, controversy or difference of any kind whatsoever which arises between the Parties in connection with or arising out of this Development Agreement, or any breach hereof.
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Duly Completed
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means, in respect of any application to the Government, the completion of the relevant forms, accompanied by all necessary substantiating documents whether in original form or copies, as may be required, and the payment of all relevant fees, levies, costs, expenses or charges.
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Effective Date
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means the date upon which the condition precedent with respect to Ratification set out in Clause 2 has been satisfied.
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Encumbrance
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means any easement, right, privilege, wayleave, covenant, restrictive covenant, option, pre-emption, licence, consent, waiver, entitlement, agreement, contract, usufruct, Tease, tenancy, Security Interest or other encumbrance of whatsoever kind.
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Environment
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means land, including surface land, sub-surface strata, Sea Bed, Sea Area, river bed, underwater sea area and natural and manmade structures, water, including without limitation coastal and inland waters, creeks, surface waters, ground waters and water in drains and sewers in the Project Area and the vicinity of the Project Area.
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Environmental Impact Assessment
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means the environmental impact assessment report required by the Law and to be submitted to the Ministry of Environment and Climate Affairs.
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Escrow Account
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means the escrow account held by a licensed and registered bank in Oman for the establishment and operation of the Escrow Account, in terms of which payments made by Third Party Purchasers and lenders to Third Party Purchasers are to be held and which funds may be utilized by the Project Company for the construction of Buildings and infrastructure for the Project.
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Escrow Agreement
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means the escrow agreement to be entered into by the Project Company, the Government and a licensed and registered bank in Oman for the establishment and operation of the Escrow Account.
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Event of Default
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means a Project Company Event of Default or a Government Event of Default, as the case may be.
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Execution Date
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means the date upon which this Development Agreement is signed by the Parties.
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Existing Land
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means that part of the Project Area, which, as at the Execution Date, is land that has the coordinates set out in the Krooki attached as SCHEDULE 1 and, as at all times subsequent to the Execution Date, is not part of the Sea Bed or Created Waterways.
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Finance Agreements
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means any agreements entered into from time to time by the Project Company with Lenders for the purpose of raising finance (i) related to the financing or refinancing of the Project or any Development thereon or thereof; or (ii) for use by the Project Company in the performance of its obligations or enjoyment of its rights under this Development Agreement.
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FM Termination Notice
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has the meaning given to such terms in Clause 17.10.
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Force Majeure
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means any event or circumstance (or a combination of events or circumstances) which is beyond the reasonable control of a Party, resulting in or causing the failure (whether in whole or in part) of that Party to perform any of the obligations to be performed by it pursuant to this Development Agreement, which failure could not, in the case of the Project Company, have been prevented or overcome by the exercise by it of Best International Practices, and such events or circumstances shall include without limitation:
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Force Majeure Report
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has the meaning given to such terms in Clause 17.2.
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Foreign Currency
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means the lawful currency of any country other than Oman.
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Founder Shareholders
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means the shareholders of the Project Company at the Execution Date, namely, the Office of Royal Court Affairs, Omagine Inc., Journey of Light, Inc., Consolidated Contractors Co. Oman LLC and Consolidated Contracting Company, S.A.
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Freehold Title
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means the unrestricted and transferable title to and registered ownership of any specified part of the Existing Land, Plot or Unit. For the avoidance of doubt, investment purposes include residential, commercial and tourism purposes.
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Government
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means the Government of the Sultanate of Oman including all of its ministries or agencies and organisations and units established pursuant to Royal Decrees 3/72 and 26/75, as amended from time to time.
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Government Authority
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means the Government or any political subdivision thereof or any person exercising executive, legislative, regulatory or administrative functions on behalf of the Government, and Government Authority shall include successor bodies who shall provide public services as a result of privatization or corporatization.
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Government Event of Default
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means the occurrence of an Event of Default as defined in Clause 20.2.
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Governmentn Event of Default Notice
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has the meaning given such term in Clause 21.2.2.
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Government Infrastructure
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means the provision of infrastructure facilities by the Government for the Project as agreed by the Government and the Project Company and, to the extent Approved, in accordance with SCHEDULE 8.
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Government Infrastructure Plan
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means that plan for Government Infrastructure set out in SCHEDULE 8, as may be Approved and varied by the Government from time to time.
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Government Objection Notice
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has the meaning ascribed to it in Clause 19.3.
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Government Risk Event (GRE)
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means any of the following events:
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Government Termination Notice
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has the meaning given such term in Clause 21.1.4.
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GRE Notice
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has the meaning ascribed to it in Clause 18.2.
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GRE Termination Notice
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has the meaning ascribed to it in Clause 18.4.
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Initial Business Plan
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means the Initial Business Plan contained in SCHEDULE 19.
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Initial Master Plan
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means the initial masterplan attached hereto as SCHEDULE 4.
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Integrated Tourism Complex or ITC
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means the Integrated Tourism Complex, as defined in Ministry of Housing Decision 191/07, which will be Developed in accordance with this Development Agreement and the Law.
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Krooki
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means the document issued on June 16 2014 by the Ministry of Housing of the Government, a copy of which is contained in SCHEDULE 1(A), and which contains details of the Existing Land as at the Execution Date, including a full set of coordinates identifying the exact location and boundaries of the Existing Land.
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Land Price
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means the price payable to the Ministry of Housing for Freehold Title to the Existing Land (or any part thereof) granted pursuant to the Usufruct Agreement, the value of which shall be twenty-five Omani Rials (OMR 25) per square meter and increased by six per cent (6%) (or such other percentage as determined by Law from time to time), each year from the registration date of the Usufruct Agreement to the end of the month in which the request for registration of Freehold Title has been submitted to the Ministry of Housing.
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Law
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means any royal decree, ministerial decision, ruling of a court, regulation or requirement and any amendments thereto or any other instrument issued by the Government and having the force of law in Oman.
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Layout Plan
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means the layout plan as contained in SCHEDULE 1.
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Lenders
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means the banks and/or other financial institutions, which have or will have committed to make available certain loan and credit facilities to the Project Company to fund the performance by the Project Company of its obligations pursuant to this Development Agreement in accordance with the Finance Agreements.
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Master Plan
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means a master plan for the Project prepared to a level of detail satisfactory to the Government showing, in relation to the Project as a whole, the:
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(a)
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vision and Development concept;
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(b)
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overall land uses and Development proposals;
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(c)
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densities for different areas;
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(d)
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gross floor areas;
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(e)
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Plot ratios and the number and types of Plots;
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(f)
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built and un-built areas;
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(g)
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physical (natural) constraints, drainage, flood protection etc.;
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(h)
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the Minimum Build Obligations;
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(i)
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the number of Units and Buildings;
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(j)
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typical sections showing the relationship of roads to buildings;
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(k)
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resident population assumptions and Project employment assumptions;
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(1)
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phasing for real estate sales and marketing strategies;
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(m)
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estimated annual tourist figures for the MBO tourism and recreational elements (first five (5) years from MBO Completion Date);
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(n)
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Project Company Infrastructure and Utilities plan showing infrastructure works related to internal road systems, potable water supply network, desalinated water treatment plant (if applicable) sewage collection, treatment and disposal systems, refuse collection and compacting areas, treated water supply network, electricity networks, and telecommunications networks within the Project Area and the policy on underground service corridors;
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(o)
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Created Waterways (if any)
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(p)
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Environmental Impact Assessment and alleviating analysis;
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(q)
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Community Facilities,
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(r)
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housing for the employees of the hotel and other tourism and recreational elements of the Project;
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(s)
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the Private Sector Public Infrastructure and Utilities proposals and locations;
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(t)
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the Project Company Infrastructure and Utilities proposals and locations;
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(u)
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safety and security provisions;
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(v)
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indicative Project and Construction Schedule;
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(w)
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indicative Phasing Plan (if any phases are contemplated);
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(x)
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aerial perspectives of Master Plan; and
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(y)
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any other drawings, information or calculations which the Government may reasonably request,
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Material Change
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has the meaning given such term in Clause 11.4.
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Material Adverse Effect
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means a material adverse effect on the Project, or on the ability of the Project Company to perform its obligations or to exercise its rights under this Development Agreement or on the ability of the Project Company to carry out a Development or any Works.
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MBO Completion Date
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means the date upon which the Minimum Build Obligations have achieved Substantial Completion.
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MBO Damages for Delay
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means the liquidated damages payable by the Project Company to the Government for delay in achieving Substantial Completion of the Minimum Build Obligation by the MBO Completion Date.
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Milestone Dates
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shall be the dates specified in SCHEDULE 7.
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Minimum
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means all acts as specified in SCHEDULE 6 to be performed by the Project Company for the Substantial Completion of the Project, within a specified period of time, in order to commence commercial operation of the tourism and other elements of the Project and in order for the Project to constitute an Integrated Tourism Complex.
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Month Build Obligations or MBO
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means a calendar month according to the Gregorian calendar unless specified otherwise.
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Mulkiya
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means the Freehold Title document issued by the Ministry of Housing confirming the legal title to the Existing Land and as set out in Schedule 1(B).
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Objection Notice
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has the meaning given such term in Clause 17.3.
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Oman
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means the Sultanate of Oman.
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Omanisation
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means the mandatory obligations in respect of the employment, training and advancement of Omani nationals, and the use of Omani goods and services, as set forth in this Development Agreement or required by the Law.
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Omanisation Plan
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means the Plan for the Community Support Program and for human resource development set out in SCHEDULE 11, as amended from time to time.
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Omanisation Report
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means a report provided to the Government by the Project Company reviewing the progress related to the provisions of Clause 7, including:
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PC Appeal Notice
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has the meaning ascribed to it in Clause 19.4.
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Phasing Plan
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means the plan for phased development of the Project as indicatively shown in Schedule 4E.
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Plans
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has the meaning given such term in Clause 11.1.
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Plan of Development or POD
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means a plan of development Approved by the Government in accordance with the Development Control Plan.
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Plot
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means any defined and delineated area within the Project Area, having its own set of coordinates and being capable of having its own krooki and mulkiya and identified as such in the Final Master Plan by the Project Company.
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Plot Plan
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means a plan created by the Project Company after the Effective Date showing the Existing Land or the Project Area subdivided into a number of separate registered Plots.
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Plot Plan Meeting
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has the meaning assigned to such term in Clause 7.2.3.
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Presale
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means, any off plan sale of a Residence Unit pursuant to a Sales Agreement entered into before the completion or construction of a Residence Unit.
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Principal Construction Contract(s)
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means all of the main construction contracts which are necessary for the completion of the Minimum Build Obligations and the Project Company Infrastructure and Utilities.
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Private Sector Public Infrastructure
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and Utilities
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means all utilities, including electricity and sewage sludge disposal which are to be provided to the Project Area, and all associated infrastructure owned and/or constructed or to be constructed by the relevant Private Sector Utility Company whether within or outside the Project Area, in accordance with the requirements set out in SCHEDULE 17.
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Private Sector Utility Company
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means the relevant private sector company licensed by the Government which shall supply the Private Sector Public Infrastructure and Utilities.
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Project
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means the implementation, planning, design, development, financing, marketing, sale, leasing, utilisation, management, maintenance and operation by the Project Company of the Project Area for the purpose of the creation, Development, and operation of the Integrated Tourism Complex pursuant to the Law and the terms of this Development Agreement.
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Project Area
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means the area situated at Wilayat of A’Seeb in Oman and which is made up of, excluding all mineral rights thereto:
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Project Assets
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means all freehold land interests and rights, Usufruct Rights, and all other assets owned by the Project Company in the Project Area, including but not limited to any Project Company Infrastructure and Utilities, buildings, roads, paths, common public spaces such as parks, pipelines, transmissions lines for electricity and telecommunications, drains, sewers, water transmission facilities and other similar infrastructure necessary for the use, operation and occupation of the Project, all buildings and other structures of any type and configuration constructed on the Project Area, and all other assets owned by the Project Company.
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Project Company
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means Omagine L.L.C., a limited liability company organized and existing under the laws of the Sultanate of Oman and registered in Oman under commercial registration number 1080151, and where the context requires, it also means Omagine S.A.O.C., a closed joint stock company to be organized under the laws of the Sultanate of Oman which will be the legal successor company to Omagine L.L.C. pursuant to the Transformation.
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Project Company Event of Default
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means the occurrence of an Event of Default as defined in Clause 20.1.
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Project Company Event of
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Default Notice
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has the meaning given such term in Clause 21.1.2.
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Project Company Infrastructure
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and Utilities”
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means the civil engineering, building, construction and installation work relating to any common areas, public areas, utilities, amenities or infrastructure within the Project Area that is not Government Infrastructure or Private Sector Public Infrastructure and Utilities and which is Developed and financed by the Project Company or its Affiliates within the Project Area with a view to rendering the Project Area capable of beneficial use, occupation or operation or to provide amenities for users, occupiers or the public and, without limiting the generality of the foregoing, shall include:
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Project Company Licences and Permits
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means such licences, permits, consents and Approvals from the Government as the Project Company may require, from time to time, to hold or obtain pursuant to applicable Law in order for the Project Company to perform its obligations and benefit from the rights provided under this Development Agreement and the commercial operation of the Project.
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Project Tasks
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means all acts necessary to be performed by the Project Company in order to accomplish the tasks listed in and in accordance with the time frames set out in SCHEDULE 7 and/or the Project Tasks as amended/supplemented in accordance with the provisions of Clause 6.1.3, and in particular the following:
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Project Company Termination Notice
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has the meaning given such term in Clause 21.2.2(c).
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Prolonged Event of Force Majeure
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has the meaning given such term in Clause 17.10.
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Ratification / Ratified / Ratify
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means the signing and authorisation by the Government of this Development Agreement in accordance with Royal Decree No. 48/76 as amended.
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Reclaimed Land
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means that part of the Project Area which is land which has been created from the Sea Area and the Sea Bed by filling and replacing such Sea Area to form compacted dry land fit for the purpose of construction and in respect of which an Environmental Impact Assessment has been effected, which shall exclude in all cases, all mineral rights and archaeological finds.
|
Registration Fee
|
means the fee payable to the Ministry of Housing pursuant to Law for the registration with such Ministry for each of:
|
|
(i)
|
the transfer of the Freehold Title to any part of the Existing Land or a Plot or Unit; or
|
|
(ii)
|
the Usufruct Agreement; or
|
|
(iii)
|
a usufruct agreement for the Reclaimed Land; or
|
|
(iv)
|
a lease/sub-usufruct agreement for the transfer of any Usufruct Rights; or
|
|
(v)
|
any Security Interest.
|
Residences
|
means all villas, town houses, flats, apartments or such other structures meant for residential purposes, but excluding serviced apartments, in the Project Area.
|
Residence Unit
|
means any Unit on which a Residence has been constructed and subject to Freehold Title.
|
Sales Agreement
|
means the Approved sales agreement between the Project Company and a Third Party Purchaser for the sale of a Residence Unit.
|
Sea Area(s)
|
means those areas within the Project Area which are areas of the sea over the Sea Bed and which are, at any time, neither Existing Land nor Created Water Ways and which, subject to the approval of the Ministry of Environment and Climate Affairs, are limited to one hundred thirty (130) meters measured from the high high water mark on the shoreline and perpendicular to the Existing Land and as shown in SCHEDULE 1.
|
Sea Bed
|
means that part of the Project Area which is under the water and not Existing Land.
|
Security Interests
|
means a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation or other security interest or an agreement or arrangement having similar effect.
|
Shareholders’ Agreement
|
means the agreement among the Founder Shareholders of the Project Company with respect to their equity interests in the Project Company, as may be amended.
|
Social Impact Assessment
|
means the social impact assessment report, prepared by the Project Company at its cost, required by the Government and to be submitted to the Ministry of Tourism in accordance with Clause 5.3.
|
Specific MBO
|
has the meaning given such term in Clause 5.4.1.
|
Standards
|
means the rules, standards and specifications set out in the Final Master Plan and which apply to the Project Area and all activities undertaken in it with respect to Works, building, design, construction, planning of roads, amenities and related facilities, commercial areas and all other activities related to the Development of the Project.
|
Step-in Notice
|
means a written notice given by a Lender to the Government pursuant to a Direct Agreement and the Project Company notifying them of such Lender’s exercise of its Step-in Right.
|
Step-in Right
|
means the right of a Lender pursuant to a Direct Agreement to:
|
|
(i)
|
undertake directly, or
|
|
(ii)
|
novate to any Person
|
Substantial Completion
|
means, that in respect of the Minimum Build Obligations, Specific MBO, Project Company Infrastructure and Utilities, Buildings, Units or Works that all necessary work has taken place, Completion Certificates have been issued, permits and licenses have been granted, the subject matter is both fit for use and is either able to commence commercial operation or is habitable for its intended purpose without hindrance, and that only immaterial outstanding or remedial work remains to be completed.
|
Substantiating Notice
|
has the meaning ascribed to it in Clause 19.1.
|
Term
|
has the meaning given such term in Clause 3.1.
|
Third Party
|
means any person who is not one of the Parties, an Affiliate of a Party or an Affiliate of a shareholder of a Party, the term “Third Parties” shall be construed accordingly.
|
Third Party Developer
|
means the Third Party Developer approved by the Government, undertaking or is to undertake the first Development of any Unimproved Land for the purposes of the Minimum Build Obligation, and who has entered into an Accession Agreement.
|
Third Party Purchaser
|
means any person of any nationality, who may be a Party or an Affiliate of a Party, who pays the relevant Registration Fee and purchases the Freehold Title to any specified part of the Existing Land, Plot or Unit.
|
Third Party User
|
means any person of any nationality, who may be a user of a Commercial Unit, a Party or an Affiliate of a Party, who utilises any Unit or portion thereof or any portion of the Project Area and/or the improvements thereon for commercial or tourism purposes pursuant to a lease, usufruct, sub-usufruct, licence or similar arrangement or any other agreement with the Project Company.
|
Time Schedule
|
means the indicative time schedule contained in SCHEDULE 7, which time schedule shall be updated from time to time, for the performance of the construction of the Project, including the Minimum Build Obligations.
|
Tourism Vessel
|
means any watercraft, vessel or boat appropriately licensed for commercial operation within the Project Area.
|
Transformation
|
means, pursuant to the Companies Law of Oman, the changing of the corporate form and structure of the Project Company after the Execution Date, from a limited liability company to a closed joint stock company.
|
Unimproved Land
|
means a part of land within the Project Area identified in the Final Master Plan for Development and which has not yet been Developed.
|
Unit(s)
|
means any developed Plot, including any improvements thereon or thereto, any flat, apartment, villa or Residence or commercial Building or any part thereof, situated within the Project Area.
|
Usufruct Agreement
|
means the usufruct agreement with respect to the Existing Land, entered into on the Effective Date by the Government and the Project Company pursuant to Clause 4 and in the form as set out in SCHEDULE 2.
|
Usufruct Fee
|
has the meaning given such term in Clause 4.1.
|
Usufruct Rights
|
means all the rights with respect to the Existing Land granted to the Project Company pursuant to the Usufruct Agreement.
|
Usufruct Term
|
means fifty (50) years and as set out in the Usufruct Agreement.
|
Voting Control
|
means the power to direct the management or policies of a company whether through the ownership of voting securities, by contract, or otherwise.
|
Works
|
means any construction, building, installation, civil engineering or other like works which do not comprise the construction of a Building.
|
CONDITIONS PRECEDENT/CERTAIN OBLIGATIONS
|
TERM
|
USUFRUCT AGREEMENT
|
GRANT OF RIGHTS TO THE PROJECT COMPANY
|
PERFORMANCE OF OBLIGATIONS
|
(a)
|
the needs of the Project;
|
(b)
|
the skills that will be needed in respect thereof; and
|
(c)
|
the availability of Omanis who have the experience, qualifications, training and skills to meet such needs.
|
(a)
|
to terminate this Agreement in accordance with Clause 21; and
|
(b)
|
to claim appropriate compensation; and to any such other remedies as may be available under the Law.
|
(a)
|
any change in a Milestone Date or any circumstance that would result in the achievement of Substantial Completion of work to occur more than sixty (60) Days after the Milestone Date provided under SCHEDULE 7; and
|
(b)
|
any material breach of a Principal Construction Contract and the action being taken by the Project Company to rectify and remedy the same, including the appointment of a replacement Contractor; and
|
(c)
|
any financial claims by Contractors performing Principal Construction Contracts in excess of twenty-five percent (25%) of the agreed contract sum and, at the same time, the Project Company shall promptly provide written confirmation of the continuing financial capacity of the Project Company to meet such claims (to the extent such claims are not being contested in good faith);
|
(d)
|
any claim for an extension of time by a Contractor performing a Principal Construction Contract which, if proven or agreed, would result in the achievement of Substantial Completion of work to occur more than sixty (60) Days after the Milestone Date provided under SCHEDULE 7;
|
(e)
|
the appointment of a replacement Contractor by the Project Company for any significant portion of the Project, with a revised indicative Time Schedule and completion date, and confirmation of the continuing financial capacity of the Project Company to meet such new commitments;
|
(a)
|
satisfied the Government that it has duly executed the Principal Construction Contract(s) by providing the Government with full copies of each of the Principal Construction Contract(s) duly executed by the Contractor. The Principal Construction Contract(s) shall be irrevocable, contain fixed completion dates, which shall be in accordance with the Time Schedule stated in SCHEDULE 7 and prior to the MBO Completion Date, and provide for appropriate penalties for delay to be paid by the Contractor to the Project Company for failure to achieve Substantial Completion;
|
(b)
|
provided a resolution of its board of directors confirming that it has the financial capacity to meet all the commitments to undertake and complete all of the Minimum Build Obligations and to pay for each of the Principal Construction Contracts;
|
(c)
|
provided to the Government a copy of the Term Sheet or other document from Lenders containing a binding financial commitment covering the Minimum Build Obligations and the Principal Construction Contract(s);
|
(d)
|
has satisfied the Government that it has achieved Substantial Completion of all material Project Company Infrastructure and Utilities works to the boundary of the Plot or sub-Plot of land that is the subject of such transfer (namely internal roads, pavements, street lighting, electricity, telecommunications, water and sewerage); and
|
(e)
|
where applicable, has satisfied the Government that it has achieved Substantial Completion of the relevant Unit and that such Unit complies with the Plan of Development, and the Unit is fit for occupation in accordance with the terms and conditions agreed by the Project Company and the Third Party Purchaser pursuant to the relevant Sales Agreement.
|
(a)
|
the Project Company considers that it would be beneficial that a qualified, experienced and reputable development company be nominated as Third Party Developer with a written approval from the Government, and
|
(b)
|
the appointment of the Third Party Developer is approved in writing by the Government, which shall be subject to the provisions of Clause 5.4.3; and
|
(c)
|
the Third Party Developer enters into and delivers an Accession Agreement undertaking to assume and discharge in accordance with the Accession Agreement the Project Company’s obligations in respect of the development of that Unit, Plot or sub-Plot of land;
|
(a)
|
all of the assets required for the Civil Defence Facilities within the Project Area, being the number of buildings required and the gross external area of the buildings required, including all internal fittings, furnishings, equipment, furniture, specialist and other vehicles and related equipment to be provided to the Government shall be agreed by the concerned Government Authorities and the Project Company;
|
(b)
|
the Project Company shall prepare and submit plans and specifications to a reasonable level of detail showing the location and finishes of the buildings so specified in SCHEDULE 9 for approval by the Government (which such approval shall not be unreasonably withheld) and such plans and specifications shall be submitted to the Government within ninety (90) Days of the Effective Date;
|
(c)
|
within a further ninety (90) Days of the submission of plans and specifications referred to in sub-paragraph (b) above, the Government shall notify the Project Company whether or not it has approved the said plans and specifications, and if said plans and specifications are not approved in full, then the Government shall specify in reasonable detail the portion that is not approved and requires changes;
|
(d)
|
if the plans and specifications are not approved in full, the Project Company shall resubmit plans and specifications within forty - five (45) Days of such notification by the Government that reflect the changes required by the Government and the Government shall approve or reject the resubmitted plans and specifications within forty - five (45) days after the date of the resubmission;
|
(e)
|
upon approval of the plans and specifications in respect of the Civil Defence Facilities, then such plans and specifications shall thereupon be applicable and enforceable as between the Parties;
|
(f)
|
the plans and specifications with respect to the Civil Defence Facilities once approved may be varied and the provisions of Clause 11 shall apply mutatis mutandis as if references to the Final Master Plan and Development Control Plan were instead a reference to the plans and specifications for the relevant Civil Defence Facilities;
|
(g)
|
the Project Company shall construct the Civil Defence Facilities in accordance with the approved plans and specifications relating to them and required by the Government Authorities; and
|
(h)
|
the Project Company shall ensure that adequate sites and units are made available within the Project Area for the provision of the Civil Defence Services subject to the requirements of the Final Master Plan in order to meet the needs of the Project Area and its occupiers.
|
|
(i)
|
the Project Company will ensure that adequate Unit(s) are made available for internal security personnel to be posted by the Government. The standards of such Unit(s) with regard to number, description, rooms, facilities, area and location shall be determined by the competent authority. The selling price charged by the Project Company to the Government for such Unit(s) shall be equal to the cost of construction thereof and shall not include any cost for the Existing Land underlying such Unit(s) and the Project Company shall be exempted from paying the Land Price to the Government with respect to such Existing Land underlying such Unit(s).
|
REPORTS AND MEETINGS
|
(a)
|
From the Effective Date until agreement is reached with all relevant Private Sector Utility Companies, the Project Company shall submit a Monthly written report to the Government on the status of the supply of the Private Sector Public Infrastructure and Utilities. The report shall include any material change in the indicative time schedules for such supply and detail any and all impediments arising with regard to the Project which it believes are directly or indirectly the responsibility of the Private Sector Utility Companies.
|
(b)
|
In the event of any delay or inaction on the part of a Private Sector Utility Company, the Project Company shall promptly inform the Government in writing of the reasons for such delay or inaction and what action is required to be taken by the Private Sector Utility Companies to overcome such delay or inaction.
|
(a)
|
Within ten (10) Days after the end of each three (3) Months period after the Effective Date, the Project Company shall provide an Omanisation Report to the Government.
|
(b)
|
Within one (1) year of the Effective Date the Project Company shall provide a report, policy statement and implementation documents to the Government indicating how the program for Community Support is planned to achieve its objectives.
|
(a)
|
Until the Substantial Completion of all Private Sector Public Infrastructure and Utilities, Government Infrastructure and Project Company Infrastructure and Utilities, the Project Company shall, unless agreed by the Parties otherwise, arrange a liaison meeting with the relevant Government Authorities and Private Sector Utility Companies at least once every three (3) Months beginning ninety (90) Days after the Effective Date to review the IULM Reports, the overall progress of the Private Sector Public Infrastructure and Utilities, Government Infrastructure and Project Company Infrastructure and Utilities and the current indicative time schedules and completion dates for the Private Sector Public Infrastructure and Utilities, Government Infrastructure and Project Company Infrastructure and Utilities.
|
(a)
|
The Parties shall hold Approval Meetings from time to time as may be required or agreed by them or within five (5) Days after a notice is given by one Party to the other Party requesting such an Approval Meeting.
|
(b)
|
With respect to the matters discussed at such Approval Meeting, the Government shall, in its sole discretion, take such action it considers appropriate to:
|
(i)
|
grant any Approval Waiver, or
|
(ii)
|
eliminate any impediment to the granting of its Approval, and
|
(iii)
|
ameliorate any negative effect on the Project Company of any impediment.
|
(a)
|
the precise form, format and content of a typical Plot Plan, and
|
(b)
|
all other procedures and documentation required to ensure the timely procurement by the Government of all required tasks, signing of documents and the like by the relevant Government Authorities as are necessary to effect the timely issuance by the Ministry of Housing of krookis and mulkiyas for each Plot or Unit, and
|
(c)
|
all other procedures and documentation required to ensure the timely procurement:
|
(i)
|
by the Project Company of payment of the relevant Registration Fee upon any Freehold Title transfer, and
|
(ii)
|
by the Government of all required tasks, signing of documents and the like by the relevant Government Authorities necessary to effect any Freehold Title transfer.
|
(a)
|
ways in which the Project Company can increase such levels, and
|
(b)
|
any difficulties the Project Company may be facing in achieving such levels, and
|
(c)
|
appropriate revisions to the Omanisation Plan.
|
ENFORCEMENT AGAINST THIRD PARTIES
|
|
(a)
|
such Third Party Developer has been approved in accordance with Clause 5.4;
|
|
(b)
|
such Third Party Developer enters into an Accession Agreement in relation to the land so transferred; and
|
|
(c)
|
the Project Company provides an irrevocable and unconditional guarantee of such Third Party Developer’s obligations under the Accession Agreement in form and substance satisfactory to the Government.
|
GENERAL RESPONSIBILITIES OF THE GOVERNMENT
|
(a)
|
provide Civil Defence Services within and for the benefit of the Project Area; and
|
(b)
|
deploy, operate and maintain the Civil Defence Services as it deems appropriate.
|
1.
|
Detailed objectives and justifications for the required land reclamation,
|
2.
|
Detailed maps showing the present land area, and the area and limits of the required land reclamation,
|
3.
|
Environmental studies and analyses of the reclamation activities including an “Environmental Impact Assessment” report documenting all studies and analyses and providing mitigating measures of potential impacts,
|
4.
|
The approval of the Ministry of Environment of the above mentioned “Environmental Impact Assessment” report.
|
LAND REGISTRATION OF TITLE TO PLOTS/ UNITS
|
|
(a)
|
to have the transfer of any Freehold Title in respect of any Plot or Units for residence or investment purposes which might be necessary, registered with the Ministry of Housing;
|
|
(b)
|
to register any leases or other similar documentation with the relevant Government Authority; and
|
|
(c)
|
in respect of any Plots, Buildings or Units that are to be sold to a Third Party Purchaser or Third Party Developer who is a non-Omani natural or juristic person pursuant to Royal Decree No.12/2006 and as amended by Royal Decree No. 65/2007, to ensure that (where applicable) the permissions, approvals and licences that may be required at that time to enable such foreign entity to purchase a Plot, Building or Unit and any other rights which it is entitled to pursuant to Royal Decree No.12/2006 and as amended by Royal Decree No. 65/2007 shall be confirmed as soon as practicable;
|
|
(d)
|
in respect of any Plots, Buildings or Units that are sold to Third Party Purchaser or Third Party Developer for residential or investment purposes, to ensure that residence visas are issued to such Third Party Purchaser or Third Party Developer, in accordance with the provisions of MD 191/2007.
|
MASTER PLAN AND DEVELOPMENT CONTROL PLAN
|
MBO DAMAGES FOR DELAY
|
PROJECT COMPANY LICENCES AND PERMITS
|
REPRESENTATIONS, WARRANTIES & COVENANTS OF THE PARTIES
|
INDEMNIFICATION
|
|
(a)
|
has existed in relation to activities carried out in respect of the Project Area prior to the Effective Date; or
|
|
(b)
|
relate to the operation of Government owned assets within the Project Area; provided, however, that the relevant environmental or other damage did not occur as a result of any negligence or wilful misconduct on the part of the Project Company or any of its agents, employees or servants; or
|
|
(c)
|
relate to Expenses arising from Customary Rights, but, which are not Customary Rights identified in the Social Impact Assessment as referred to in Clause 5.3.
|
|
(a)
|
any existing Third Party rights affecting the Existing Land, save for those rights identified under this Development Agreement, or any claim in respect thereof;
|
|
(b)
|
any claim in respect of any action taken, undertaken or performed by the Project Company pursuant to an Approval Waiver (“Waived Action”) where such claim is based upon any person claiming that such Waived Action was not Approved by the Government for the full amount of Liabilities.
|
|
(a)
|
death or personal injury;
|
|
(b)
|
loss of or damage to property;
|
|
(c)
|
breach of any laws; and
|
(a)
|
the Indemnitee shall not, absent the prior written consent of the other Party (which shall not be unreasonably withheld or delayed), admit liability or make any offer, promise, compromise or settlement with a Third Party in respect of such Claim; and
|
(b)
|
at the request of the other Party and at such other Party’s cost the Indemnitee shall, cooperate with the other Party and its insurers and attorneys, in the defence, or settlement of such Claim or in any counterclaim thereof.
|
(c)
|
Each Party shall be obligated to take such reasonable actions and precautions and to institute such reasonable procedures so as to minimize, as far as reasonably practicable, the damages or losses suffered by the Parties, or either of them, with respect to any such Claim.
|
16
.
|
INSURANCE
|
|
(a)
|
subject to Clause 16.4 below, name the Government (until the MBO Completion Date) and the Project Company as co-insured with any other party maintaining the insurance;
|
|
(b)
|
contain a clause waiving the insurer’s subrogation rights against the Government and the Project Company and their respective agents, servants and employees;
|
|
(c)
|
provide for sixty (60) Days prior written notice of their cancellation, non-renewal or amendment to be given to the Government.
|
|
(a)
|
copies on request of all insurance policies referred to in Clause 16.1 and the Government shall be entitled to inspect them during ordinary business hours; and
|
|
(b)
|
evidence of the premiums payable under all insurance referred to in Clause 16.1 have been paid and that the insurances are in full force and effect in accordance with the requirements of this Clause 16.
|
17
.
|
FORCE MAJEURE
|
|
(a)
|
specify the Event of Force Majeure;
|
|
(b)
|
describe the damage and/or other effects resulting from the Event of Force Majeure;
|
|
(c)
|
provide a good faith estimate (in each case to the extent applicable in the circumstances) of:
|
|
i.
|
where appropriate, the costs to restore affected part or parts of the Project Area to its or their condition immediately prior to the Event of Force Majeure and the associated costs of delay;
|
|
ii.
|
the time which it will take to restore the affected part or parts of the Project Area to such condition;
|
|
iii.
|
the liquidated damages and/or the insurance proceeds, if any, that may be recovered, the date or dates on which such proceeds may be recovered and the particular purposes for which such proceeds are required to be applied; and
|
|
(d)
|
include all relevant supporting documentation.
|
|
(a)
|
make all reasonable efforts to prevent and reduce to a minimum and mitigate the effect of any delay or cost increase occasioned by any Event of Force Majeure; and
|
|
(b)
|
use their Best Efforts to ensure resumption of normal performance under this Development Agreement after the occurrence of any Event of Force Majeure and perform their obligations hereunder to the maximum extent practicable.
|
|
(a)
|
the cessation of the relevant Event of Force Majeure; and
|
|
(b)
|
the cessation of the effects of such Event of Force Majeure on the performance by such Party of its obligations under this Development Agreement,
|
GOVERNMENT RISK EVENT
|
CHANGE OF LAW
|
|
(a)
|
with the Substantiating Notice, the Project Company shall have given full details of the relief and the compensation sought:
|
|
(b)
|
the Project Company must demonstrate that the Change of Law was or shall be the direct cause of the partial or full inability to perform its obligations hereunder and the subject of the relief and compensation sought by it; and
|
|
(c)
|
subject to Clause 19.6 (d) below, the Parties shall use their best endeavours to agree an appropriate relief and/or compensation within sixty (60) Days of the conclusion of the thirty (30) Day period referred to in Clause 19.5 and failing such agreement the matter shall be a dispute which shall be dealt with in accordance with Clause 28.
|
|
(d)
|
should the Change of Law result in the Project Company full inability to proceed with or perform the Project Tasks, the Project Company shall be entitled to terminate this Development Agreement by delivering to the Government a Change of Law Termination Notice, in which instance the compensation provisions set out in SCHEDULE 12 will apply, provided that should the Government dispute the Project Company’s entitlement to terminate this Development Agreement, which should be included in the Government’s Notice as referred to in Clause 19.3 above, such dispute shall be resolved in accordance with Clause 28.
|
|
(a)
|
increase in the duty payable on alcohol or special tax on alcohol;
|
|
(b)
|
changes in laws of general application to persons and businesses which are resident or doing business in Oman;
|
|
(c)
|
company tax rates increased;
|
|
(d)
|
increase in the Tourism tax or the Municipal tax;
|
|
(e)
|
limitation on discounts from published tariffs of hotel rooms;
|
|
(f)
|
introduction of personal income tax;
|
|
(g)
|
introduction of charges for property owners, tenants, residences or businesses for public services;
|
|
(h)
|
increase in charges or introduction of new categories of charges for sales and transfers of property, mortgages, registration, authentication, certification, and leasing properties;
|
|
(i)
|
changes in health, safety, environmental, criminal and public policy laws;
|
|
(j)
|
changes in laws which are not specifically discriminatory against the Project or the Project Company;
|
|
(k)
|
changes in labour law, charges and percentages for Omanisation;
|
|
(l)
|
changes in customs duties for importation of goods;
|
|
(m)
|
changes in the cost of gas, petrol, diesel;
|
|
(n)
|
changes in electricity and water charges;
|
|
(o)
|
changes in vehicle registration tax and other transportation taxes; and
|
|
(p)
|
changes in visa fees, airport departure, arrivals, taxes and charges.
|
EVENTS OF DEFAULT
|
|
(a)
|
any material breach by the Project Company of any material term or condition of this Development Agreement, including without limitation, the breach of any representation or warranty made in this Development Agreement which has a Material Adverse Effect on the ability of the Project Company to perform the Project Tasks;
|
|
(b)
|
any material breach by the Project Company of its obligations under this Development Agreement;
|
|
(c)
|
any material breach by the Project Company of its obligations to perform the Minimum Build Obligations;
|
|
(d)
|
any gross negligence, misrepresentation or wilful misconduct by the Project Company which has had or is likely to have a material adverse effect on the Project;
|
|
(e)
|
any assignment of rights by the Project Company in violation of this Development Agreement;
|
|
(f)
|
Abandonment of the Project at any time;
|
|
(g)
|
a resolution is passed or court order issued to wind up or liquidate the Project Company whether voluntarily or compulsorily;
|
|
(h)
|
a material breach under the Usufruct Agreement; and
|
|
(i)
|
any material breach by a Third Party Developer of the Accession Agreement which has not been remedied by the Project Company.
|
|
(a)
|
any Project Company Licence and Permit not being issued in accordance with Clause 13 and which has a Material Adverse Effect on the Project and the ability of the Project Company to satisfy its obligations under this Development Agreement;
|
|
(b)
|
any Project Company Licence and Permit ceasing to remain in full force and effect, upon a Duly Completed application being made by the Project Company, not being renewed in accordance with Clause 13 and which has a material adverse effect on the Project and the ability of the Project Company to satisfy its obligations under this Development Agreement;
|
|
(c)
|
a material breach by the Government of any material term or condition of this Development Agreement which has a Material Adverse Effect on the Project and the ability of the Project Company to satisfy its obligations under this Development Agreement;
|
|
(d)
|
any assignment of rights by the Government in violation of this Development Agreement;
|
|
(e)
|
a failure by the Government to satisfy, within a reasonable time, its obligations with respect to the Government Infrastructure pursuant to this Development Agreement and which cannot be compensated by the payment of damages.
|
TERMINATION AND CONSEQUENCES
|
(a)
|
a Project Company Event of Default has occurred in respect of Clause 20.1(c), (f), (g) or a material breach of any of its obligations which cannot be adequately recompensed by the payment of compensation; and
|
(b)
|
the Government first follows the procedure set out in this Clause 21.1.
|
(a)
|
details regarding the Project Company Event of Default being complained of;
|
(b)
|
the steps which the Government reasonably considers are necessary to remedy the Project Company Event of Default; and
|
(c)
|
the Government’s intention to serve notice terminating this Development Agreement (a “Government Termination Notice”).
|
(a)
|
the Project Company’s entitlement to sell or transfer any Plots or to commence or continue Development work shall immediately cease;
|
(b)
|
the Project Company shall, and shall procure that its Affiliates, immediately thereupon re-transfer back to the Government all land in the Project Area, any Freehold Title, Usufruct Rights, sub-Usufruct Rights, leases, licenses, beneficial interests, etc. to which is vested in the Project Company, including any improvements thereof or structures thereon;
|
(c)
|
the Parties shall act reasonably in arranging for an orderly wind down of the arrangements between them;
|
(d)
|
determination shall be without prejudice to any claims by either Party for antecedent breach
.
|
(a)
|
a Government Event of Default has occurred;
|
(b)
|
as a result of the Government Event of Default either (i) the Project cannot proceed materially in the manner contemplated by this Development Agreement or (ii) compensation would not adequately recompense the Project Company; it being agreed that if the requirements of this sub-cause (b) are not satisfied, then the Project Company shall retain all rights under this Development Agreement to seek recompense for the alleged Government Event of Default (but excluding any Consequential Loss) and resolution of any related dispute pursuant to Clause 28; and
|
(c)
|
the Project Company first follows the procedure set out in this Clause 21.2.
|
(a)
|
details regarding the Government Event of Default being complained of;
|
(b)
|
the steps which the Project Company reasonably considers are necessary to remedy Government Event of Default; and
|
(c)
|
the Project Company’s intention to serve a written notice terminating this Development Agreement (“Project Company Termination Notice”).
|
(a)
|
the Project Company’s entitlement to sell or transfer any Plots or to commence or continue Development work shall immediately cease;
|
(b)
|
the Project Company shall, and shall procure that its Affiliates, immediately thereupon re-transfer back to the Government all land in the Project Area, any freehold titles, Usufruct Rights, sub-Usufruct Rights, leases, licenses, beneficial interests, etc. to which is vested in it, including any improvements thereof and structures thereon;
|
(c)
|
the Parties shall act reasonably in arranging for an orderly wind down of the arrangements between them; and
|
(d)
|
termination shall be without prejudice to any claims by either Party for antecedent breach.
|
LENDERS SECURITY INTERESTS
|
ACCOUNTING AND AUDITING
|
ASSIGNMENT
|
25
.
|
WAIVER
|
TAXATION
|
NOTICES
|
|
(a)
|
in the case of telefax, at the time when transmission is completed and an electronic answerback or other reply confirmation (which may include acknowledgement of receipt from the recipient) is received by the sending party indicating successful receipt by the receiving party of the document to be delivered; and
|
|
(b)
|
in the case of delivery by hand or pre-paid, recorded courier or postal delivery, when actually delivered; provided, however, that in each case where the application of this Clauses 27.2 (b) would otherwise result in delivery on a Day which is not a Business Day or at a time after 5:00 PM on a Day which is a Business Day, then delivery shall be deemed to have occurred at 9:00 AM on the next following Business Day. All references to time and date in this Clause are to the local time and date in the location of delivery.
|
GOVERNING LAW AND DISPUTE RESOLUTION
|
SOVEREIGN IMMUNITY
|
CAPTIONS
|
ENTIRE AGREEMENT
|
32
.
|
SEVERABILITY
|
3
3
.
|
CONFIDENTIALITY
|
SCHEDULES
|
NO THIRD PARTY RIGHTS
|
ANTICIPATORY BREACH
|
36.2.1
|
the other Party may either continue to seek performance or
|
36.2.2
|
can declare the first Party to be in breach. If such declaration is made, the Party making the declaration becomes immediately entitled to damages (subject to a duty to mitigate) calculated by reference to the time when performance was due.
|
37
.
|
FURTHER ASSURANCES
|
RELATIONSHIP OF THE PARTIES
|
By:
|
His Excellency Ahmed bin Nasser bin Hamed Al Mahrizi
|
/s/ H. E. Ahmed bin Nasser bin Hamed Al Mahrizi
|
By:
|
His Excellency Darwish bin Isma’eel bin Ali Al Balushi
|
Minister Responsible for Financial Affairs
|
By:
|
/s/
Frank J. Drohan
Frank J. Drohan
Managing Director
|
|
Krooki; Mulkiya; Sea Area; Layout
|
i.
|
the Krooki dated June 16, 2014 as defined in Clause 1 and shown below as Part A of this Schedule 1 is the Krooki for the Existing Land, and
|
ii.
|
any diagrams, drawings, photographs or the like contained in any Schedule to this Development Agreement showing boundaries of the Existing Land different from the boundaries shown in the Krooki are indicative only and are hereby amended to represent and mean the boundaries of the Existing Land as definitively shown in the June 16, 2014 Krooki.
|
(i)
|
has a side (the “First Side”) that is co-existent with that line in the Gulf of Oman which is the high high water mark (“HHWM”) adjacent to the Krooki boundary line facing the Sea Area (the “Outer Boundary”), and
|
(ii)
|
has an opposite and parallel side (the “Second Side”) the coordinates of which are perpendicular to the First Side and subject to the approval of the Ministry of Environment and Climate Affairs, is one hundred thirty (130) meters in a north-easterly direction from the First Side, and
|
(iii)
|
is bounded on its other two sides by:
|
|
a)
|
a side (the “Third Side”) which is that line originating at the point that is the north-western boundary point of the Krooki and running perpendicular to and through the First Side up to that point where it intersects the Second Side, and
|
|
b)
|
a side (the “Fourth Side”) which is parallel to the Third Side and which Fourth Side is that line originating at the point that is the south-eastern boundary point of the Krooki and running perpendicular to and through the First Side up to that point where it intersects the Second Side.
|
Sultanate of Oman
Muscat
Ministry of Tourism
|
Contract No.:
|
Name of Project: Omagine Project
|
Governorate/State/District: Muscat
|
Name of Investment Company (Beneficiary): Omagine LLC
|
USUFRUCT CONTRACT
|
THE Government of the Sultanate of Oman, represented in this Contract by the MINISTRY OF TOURISM
Address: P.O. BOX 200, P.C. 115, Madinat Al-Sultan Qaboos, Sultanate
of Oman, referred to hereinafter as (the “First Party”); and
|
Omagine LLC, a limited liability company registered under the laws of Oman and having commercial registration number 1080151. Address: PO Box 708, Madinat Al Sultan Qaboos, PC 115, Sultanate of Oman, Referred to hereinafter as the “Second Party”
|
Preamble
|
Whereas, the First Party owns the plot of land No. (1) in Block No. (74SW) located in Al Hail North, Governorate/State/District of Al Seeb, with a total area of (1000000 square meters) shown in the attached drawing referred to hereinafter (the “Land”).
|
Whereas, the First Party has agreed to award the Second Party the rights of Usufruct over the Land in order to implement the works set out in (a) the master plan of the Project approved by the First Party pursuant to the Development Agreement and (b) the Development Agreement,
|
Whereas the First Party and the Second Party have signed a Development Agreement setting out in detail the terms and conditions governing the development, use and sale of the Land.
|
Therefore, the Parties agreed to conclude this Contract according to the following terms and conditions :
|
ARTICLE 1
|
1.
The foregoing Preamble, the Laws and Regulations governing lands held in Usufruct in the Sultanate of Oman shall be part and parcel of this Contract, and shall be concurrently read and interpreted with them. This Contract shall also be an integral part of the Development Agreement entered into between the Parties, together with the schedules thereto. In case of any conflict between this Usufruct Contract and the Development Agreement, the provisions of the Development Agreement shall prevail.
|
2.
The Second Party acknowledges to have lawfully inspected the Land held in Usufruct in a manner that excludes ignorance, and agrees to hold it in Usufruct, without any right of recourse on the First Party with respect to rights other than those provided for in the Development Agreement.
|
3.
The Second Party shall be entitled to divide the Land into separate parcels, blocks, units or parts and to assign all or part of its rights hereunder to third parties pursuant to the Law promulgated by Royal Decree 12/2006 and its Executive Regulations on ownership of real estate in integrated tourism complexes.
|
ARTICLE 2: TERM OF USUFRUCT
|
1.
The First Party shall, pursuant to this Contract, grant the Second Party, the Usufruct rights over the Land for a period of fifty years (the “Usufruct Term”), renewable subject to a written agreement between the Parties
|
2.
The Usufruct Term shall commence from the date of registration of this Contract.
|
ARTICLE 3: OBLIGATIONS OF THE FIRST PARTY
|
1.
The First Party shall deliver the Land free of any encumbrances or rights limiting the Usufruct and warrants that no government body or third party will obstruct the Second Party during the Term of Usufruct; failing which, the Second Party shall have the right to terminate this Contract without prejudice to his right to demand payment of damages as set out in the Development Agreement.
|
2
The First Party shall register this Contract with the Real Estate Registry at the Ministry of Housing, Sultanate of Oman on or immediately after ratification of the Development Agreement. The registration charges shall be at the expense of the Second Party.
|
3
The Second Party shall be granted exemption from payment of Usufruct rates and incentives and concessions in accordance with pertinent regulations as set out in the Development Agreement.
|
4.
The Second Party shall be exempted from payment of the Annual Usufruct Rent during the first five (5) years of this Contract starting from the date of the registration of the Usufruct Rights in the name of the Second Party
|
ARTICLE 4: OBLIGATIONS OF THE SECOND PARTY
|
The Second Party commits to:
|
1. Pay an annual usufruct fee being(0.300 Omani Riyals multiplied by the Existing Land (in square meters) X 30%), provided that the Annual Usufruct Fee shall be reduced in proportion with any part of the Existing Land that the Government has received the Land Price for.
|
2.
Pay to the First Party a delay penalty equivalent to six percent (6%) per annum of the unpaid balance of the Annual Usufruct Rent. This penalty shall apply from the due date through the date of settlement.
|
3.
Pay all chargeable taxes and levies as they fall due, unless fully or partly exempted from them pursuant to the provisions of laws and regulations prevailing in the Sultanate.
|
4.
Take all necessary measures to protect the boundaries of the Land from any trespassing and maintain the Land, buildings and installations constructed by the Second Party or over which the Second Party has usufruct rights pursuant to this Contract and which were constructed pursuant to the Development Agreement and strictly use it for the intended purpose only.
|
5.
Comply with the terms and conditions of the Development Agreement and all applicable laws and regulations in the Sultanate of Oman.
|
6.
The Second Party shall begin executing the Project according to the provisions of the Development Agreement.
|
7.
The Second Party shall not take any legal or physical action in relation to the Land subject of Usufruct for a period beyond the expiry date of the Usufruct.
|
8.
Insure the buildings and installations together with fixed and movable assets constructed pursuant to the Development Agreement and owned by the Second Party or over which the Second Party has usufruct rights pursuant to this Contract (collectively, “Installations”) during the Contract Term against any “Insurable Risk” with respect to losses or damages to such Installations regardless of how they are caused, subject always to the reasonable exclusions of the insurance coverage in force as agreed, provided that the insurance covers the value of such Installations. In the event that such Installations are destroyed or damaged as a result of an Insurable Risk, the Second Party shall file an insurance claim with respect to such damage or destruction (an “Installation Claim”). Upon obtaining the necessary permits and approvals from the First Party, the Second Party shall apply the proceeds, if any, received from an insurer with respect to any such Installation Claim (“Proceeds”) to the reconstruction and restoration of the damaged or destroyed Installations that are the subject matter of such Installation Claim. The Second Party shall use its best efforts to repair such Installations such that they are returned to the state they were in immediately prior to the occurrence of such damage or destruction.
|
ARTICLE 5: DISPOSAL OF THE USUFRUCT
|
1.
Subject to Article 2 of the Royal Decree No. 12/2006, the Second Party, in order to finance the Project, shall have the right to assign all or part of the rights granted to it by virtue of this Contract to another party, or to mortgage the Usufruct right applicable to the Land and all the structures existing thereon as set out in the Development Agreement.
|
2.
The deed of assignment or mortgage shall stipulate that the rights and obligations of the Second Party, as stipulated under this Contract shall apply to the transferee or the mortgagee in lieu of the Second Party, even in the event that the Second Party ceases to exist as a legal entity.
|
3.
In accordance with the provisions of the law promulgated by Royal Decree No. (12/2006) and its Executive Regulations, the Second Party shall be entitled to sell the Land pursuant to the terms and conditions stipulated in the referred to Law and its Executive Regulations as well as the provisions of the Development Agreement
|
ARTICLE 6: OBLIGATORY SUSPENSION OF THE PROJECT DUE TO A FORCE MAJEURE
|
In cases of Force Majeure that prevent any of the parties to perform their duties, the pertinent provisions in the Development Agreement shall apply.
|
ARTICLE 7: TERMINATION OF CONTRACT
|
In the event that the Second Party fails to complete the Minimum Build Obligations as set out in the Development Agreement, the First Party may terminate this Contract provided that the First Party also terminates the Development Agreement. Repossession and compensation shall be governed by the Development Agreement.
|
ARTICLE 8: General Provisions
|
1
. Upon expiry of this Contract and unless it has been renewed or extended by the Parties, the buildings and structures on the Land which have not yet been duly transferred from Usufruct to freehold title (i.e. if transfer of title has not been duly registered with the government or for which the right to acquire freehold title has not been validly assigned), shall become the property of the First Party, all subject to the provisions of Development Agreement.
|
2.
The termination of this Contract in line with Article seven
shall be without prejudice to the registered rights of third parties in connection with the Usufruct, such as mortgage, or any other usufruct right accruing during the Usufruct Term.
|
ARTICLE 9: APPLICABLE LAW AND DISPUTE RESOLUTION
|
1.
This Contract shall be governed by the Laws, Rules and regulations applicable in the Sultanate of Oman.
|
2
.
Any dispute arising between the Parties in connection with any of the terms of this Contract shall be settled in accordance with the dispute resolution mechanism and arbitration as set out in the Development Agreement.
|
3.
The Parties agree that in case of any conflict between this Contract and the Development Agreement, the Development Agreement shall prevail.
|
4.
All provisions of the Development Agreement shall survive the termination of the Development Agreement to the extent they are applicable to the Usufruct.
|
ARTICLE 10: NOTICES
|
1
. Both Parties have designated the addresses shown in the Preamble of this Contract as their addresses. Each Party shall notify the other Party in case of a change in address and no correspondence shall be valid unless sent to this address.
|
2.
This Contract has been drawn in five (5) original copies signed by the Parties, a copy of which is delivered to the Second Party, two copies to the First Party, and a copy to each of the Ministry of Finance and the Real Estate Registry within the Ministry of Housing.
|
ARTICLE 11: CONTROLLING LANGUAGE
|
In the event that this Contract is read in a language other than the Arabic language, the Parties hereto acknowledge and agree that the Arabic language version hereof shall prevail in case of inconsistency or contradiction in interpretation or translation of this Contract.
|
First Party(Ministry)
|
SIGNED for and on behalf of
THE MINISTRY OF TOURISM OF THE SULTANATE OF OMAN
:
Signature:
Stamp:
|
SIGNED for and on behalf of Omagine LLC:
Signature:
Stamp:
|
1.
|
Usufruct Fee / Usufruct Rent
.
|
|
1.1
|
The Usufruct Fee shall be equal to three hundred Baisa (RO 0.300) per square meter.
|
|
1.2
|
A Plot which has its freehold title registered in the name of the Ministry of Tourism and a Substantially Completed Building which is not a Residence situated upon it is hereby defined as a “Rentable Plot” and the sum of all Rentable Plots is hereby defined as the “Rentable Area”.
|
|
1.3
|
The Project Company shall pay the Government a sum per year (the “Annual Usufruct Rent”) that is arrived at by multiplying (x) the Usufruct Fee, by (y) the total number of square meters of Reclaimed Land and Existing Land that is in existence and constituting the Rentable Area on the 31
st
Day of December of the year immediately prior to the year for which such Annual Usufruct Rent is being calculated.
|
|
1.4
|
The sum of all Existing Land and Reclaimed Land other than the Rentable Area (and including all Plots of open area plus any Plot upon which is situated a Building which is not Substantially Completed) is hereby defined as the “Non-Rentable Area”. There shall never be any Usufruct Rent due or owing to the Government for the Non-Rentable Area.
|
|
1.5
|
The Project Company shall pay Usufruct Rent to the Government during each year within the Usufruct Term except for that time period beginning on the Effective Date and ending five (5) Years thereafter (the “Rent Free Period”). No such rent is payable during the Rent Free Period.
|
|
1.6
|
Each Annual Usufruct Rent payment shall be paid in full, in advance to the Government on or before January 15th of the year for which it is due and shall be proportionally adjusted for any short year or Rent Free Period.
|
2.
|
Registration Fees / Usufruct / Usufruct Amendment
.
|
2.1
|
The Parties hereby agree that the Registration Fee to be paid by the Project Company to the Ministry of Housing for the registration of the Usufruct Agreement shall be calculated based upon the Annual Usufruct Rent relevant to the Existing Land and in accordance with the Law.
|
2.2
|
The Parties hereby agree that the Registration Fee to be paid by the Project Company to the Ministry of Housing for the registration of the Amendment (as that term is defined in Clause 9.6.4 of this Development Agreement) shall be calculated based upon the Annual Usufruct Rent relevant to the Reclaimed Land and in accordance with the Law.
|
2.3
|
Such Registration Fees shall be paid at the time of the registration of the Usufruct Agreement or the Amendment, as the case may be.
|
2.4
|
The Usufruct Agreement shall be registered with the Ministry of Housing as soon as possible after its execution by the Parties and subsequent to the Ratification of the Development Agreement. The Amendment shall be registered with the Ministry of Housing as soon as possible after its execution by the Parties pursuant to Clause 9.6.4 of the Development Agreement.
|
3.
|
All provisions of the Usufruct Agreement and of the Amendment, and all provisions of this Development Agreement relevant to the Usufruct Agreement, the Amendment and the Usufruct Rights, shall survive the expiry of the Term and continue in full force and effect as legally binding and enforceable obligations of the Parties until the expiry of the Usufruct Term.
|
4.
|
The freehold title to the Existing Land is registered in the name of the Ministry of Tourism as of the Execution Date, and upon the formation of Reclaimed Land, the freehold title to all such Reclaimed Land will be registered in the name of the Ministry of Tourism. The Project Company will create Plot Plans subdividing the Existing Land and the Reclaimed Land into sub-Plots (“Separately Registered Plots”) and the Government will do all things necessary to register each Separately Registered Plot in the name of the Ministry of Tourism. Each Separately Registered Plot of Existing Land shall continue to be subject to the Usufruct Agreement and after the Amendment is executed by the Parties each Separately Registered Plot of Reclaimed Land shall be subject to the Usufruct Agreement as amended by the Amendment.
Any
Sales Agreements
for the sale of a Plot, Residence Unit or Commercial Unit and any
sub-usufruct agreement and/or lease
may be entered into by
the P
roject Company and any person
in the sole discretion of the Project Company and without the requirement for any Government Approval.
The Government hereby grants to the Project Company such easements and rights of way from and after the Execution Date as may be necessary or convenient for the Project Company to access the Existing Land to fulfill its obligations and exercise its rights in accordance with and pursuant to the Development Agreement. From and after the Execution Date, the Government hereby grants to the Project Company, its Affiliates and any of the Project Company’s consultants, Contractors, architects or other service providers or vendors, access to all parts of the Project Area to enable the finalizing of the Development Control Plan, the Final Master Plan and any and all other plans, studies, surveys, testing or assessments referred to in this Agreement or required or desired to be performed by the Project Company. The Government also undertakes not to lease, transfer or otherwise deal with, or create any Encumbrance over, any part of the Project Area prior to the execution of the Usufruct Agreement and Amendment.
|
1.
|
Commitment with items of implementing regulation of the owner of real estate in the integrated Tourism complexes issued by Ministry decision No. 191/2007 (enclosed).
|
2.
|
Comitment of No. (1) item of Ministry decision No. 98/2009 of amendment of the implement of regulations of the owner of real estate in the integrated tourism complexes issued Ministry’s decision No. 191/2007 which state “The number of residential units should not exceed the number of hotel units” (Enclosed).
|
Part A.
|
Initial Master Plan Drawing – See Schedule 4A attached
|
Part B.
|
Reclaimed Land
|
Part C.
|
Perimeter Landscaped Area
|
Part D.
|
Coverage / Variations / DCP Changes
|
Part E.
|
Phasing Strategy – See Schedule 4E attached
|
|
1.1
|
Upon the formation of the Reclaimed Land, the Government shall no later than forty-five (45) Business Days after receiving from the Project Company the written notice thereof referred to in Clause 9.6.1, procure the registration of the title to the Reclaimed Land in the name of either:
|
|
a)
|
the Ministry of Tourism, and grant a usufruct right to the Project Company for the remainder of the Usufruct Term in respect of such Reclaimed Land upon the same terms as the Usufruct Agreement and the Parties agree that the Usufruct Agreement shall be amended accordingly so as to properly reflect such grant of the Usufruct Rights in respect of the Reclaimed Land; or
|
|
b)
|
the Project Company or a Third Party pursuant to Clause 9.6.1.
|
|
1.2
|
The Government agrees that (i) all rights and Usufruct Rights granted to the Project Company in respect of the Existing Land pursuant to this Development Agreement are hereby and shall also be granted to the Project Company in respect of the Reclaimed Land, and (ii) all references in this Development Agreement to the Existing Land are, where the context requires, also references to the Reclaimed Land.
|
1.
|
The Perimeter Landscaped Area is that area of land between the Krooki boundary line facing the Main Road (the “Inner Boundary”) and the Main Road (as that term is defined in Schedule 8). The Perimeter Landscaped Area is not within the Project Area and is indicatively shown in the drawing below in this Part C of this Schedule 4.
|
2.
|
The Project Company and the Government agree that the Project Company shall undertake and perform such landscaping activities within and upon the Perimeter Landscaped Area as the Project Company, in its sole discretion, deems necessary, convenient or desirable to perform in order to beautify, maintain and clean the Perimeter Landscaped Area (the “Landscaping Activities”) at the sole cost and expense of the Project Company and the Project Company will not seek reimbursement from the Government for any such Landscaping Activities.
|
3.
|
The Parties agree that no activities, development or buildings of any kind or nature other than as contemplated by this Development Agreement or as agreed in writing by the Parties will be permitted by the Government or carried out by the Project Company within the Perimeter Landscaped Area at any time after the Execution Date or during the Usufruct Term or any extension thereof, except on those two (2) Plots within the Perimeter Landscaped Area which as of the Execution Date have been registered with the MOH and on which there is located (i) electric power infrastructure, and (b) a football field (collectively, the “Exempted Plots”). Notwithstanding the foregoing sentence, the Government hereby agrees to permit the Project Company, at the Project Company’s sole expense, to erect and maintain such directional, advertising and marketing signage relevant to the Omagine Project (the “Omagine Signage”) within and upon the Perimeter Landscaped Area as the Project Company, in its sole discretion, deems necessary or convenient.
|
4.
|
The Government hereby grants the Project Company an easement right from and after the Execution Date and during the Usufruct Term and any extension thereof to (i) enter upon the Perimeter Landscaped Area at any time, (ii) perform the Landscaping Activities, and (iii) erect and maintain the Omagine Signage
.
|
5.
|
The Government will not charge the Project Company any access, use or other such fee or tax of any nature (i) for its Landscaping Activities, or (ii) for, or in respect of, the Omagine Signage, or (iii) in any other respect of the Perimeter Landscaped Area
.
There shall never be any Usufruct Fee, easement fee or tax due or owing to the Government from the Project Company with respect to the Perimeter Landscaped Area.
|
6.
|
The Project Company agrees that the restrictions on development within the Perimeter Landscaped Area shall be subject to:
|
|
(i)
|
any Encumbrance existing as of the Execution Date with respect to the Perimeter Landscaped Area, and
|
|
(ii)
|
the right of the Government and/or the relevant Private Sector Public Utility Company (“PSUC”) to install any public utility infrastructure, equipment or distribution apparatus (collectively “Public Infrastructure”) in a location beneath the Perimeter Landscaped Area (an “Underground Location”).
|
7.
|
The Government hereby agrees that it and/or the relevant PSUC shall:
|
|
(i)
|
be responsible to procure and maintain that any Public Infrastructure is installed in an Underground Location, and
|
|
(ii)
|
be responsible to maintain all Public Infrastructure existing on the Execution Date within, beneath or upon the Perimeter Landscaped Area, and
|
|
(iii)
|
within twenty-four (24) Months after the Execution Date, remove all above ground poles (“Utility Poles”) carrying telephone or electricity transmission wires, which Utility Poles are, as of the Execution Date, located within the Perimeter Landscaped Area or the Project Area, and
|
|
(iv)
|
move the electricity and telephone wires presently strung overhead on such Utility Poles to an Underground Location
.
|
1.
|
C
overage
.
|
2.
|
Monitoring and review of the Plans
.
|
A)
|
the application meets the goals and objectives of the DCP; and
|
B)
|
compliance with the relevant provision or criteria contained in the DCP is unreasonable or unnecessary in the circumstances that apply.
|
2.1.1
|
The Parties agree that they foresee the likelihood of DCP Changes occurring as the final detailed design of the Project unfolds.
|
2.1.2
|
The Parties agree therefore that if the Project Company wishes to implement a DCP Change it shall give a notice (a “DCP Change Notice”) to the Government requesting Approval of such DCP Change together with a reasonable amount of detail to substantiate such DCP Change (a “DCP Proposal”) and the following shall apply:
|
|
A)
|
if such DCP Change will not have a Material Adverse Effect upon any development already constructed on land adjoining the Project Area, or is not a Material Change, then the Government shall:
|
|
(i)
|
Approve such DCP Change, and
|
|
(ii)
|
issue any relevant Ministerial Decision of Amendment to the DCP as required by Clause 11.6, and
|
|
(iii)
|
take the necessary action to publish any such Ministerial Decision of Amendment as Law, and
|
|
(iv)
|
not unreasonably withhold its Approval of any such DCP Change, or
|
|
B)
|
if such DCP Change is a Material Change, then the Government shall not have any obligation to approve such Material Change but, subject to the Law, shall not unreasonably withhold its Approval of any such Material Change, and
|
|
C)
|
the Government shall ensure that its written response (“Response”) to such DCP Change Notice is given within the sixty (60) day period specified in Clause 11.5 (the “Response Period”) including ensuring that all relevant Government Authorities analyze any such DCP Proposal and provide their comments, if any, prior to the end of such Response Period, and
|
|
D)
|
within the Response Period, the Government shall give a Response informing the Project Company of its Approval or rejection of such DCP Change or of its granting of an Approval Waiver with respect to such DCP Change, and
|
|
E)
|
if a Response is not received within the Response Period, or if the Government gives a Response which is a rejection, then such shall be a Dispute which shall be resolved pursuant to the provisions of Clause 28.2.
|
2.1.3
|
If at any time, based solely on ensuring that the Development Control Plan is consistent with the Law, or the interests of health, safety, security, environmental or public policy (collectively, the “Public Policy Issues”), the Government considers that the Public Policy Issues require a change to the DCP (a “Government DCP Amendment”), then any such proposed Government DCP Amendment may be made by the Government through a decision of the Government. No Government DCP Amendment shall be implemented or made unless and until the Project Company:
|
|
A)
|
receives prior written notice thereof (a “Government DCP Change Notice”) together with the exact wording of such proposed Government DCP Amendment, and
|
|
B)
|
has further been given ninety (90) Business Days from the date it receives such Government DCP Change Notice to give a written Response to the Government with its comments in respect thereof (“Project Company Comments”).
|
2.1.4
|
The Project Company Comments shall be limited to the effects the proposed Government DCP Amendment or the proposed timing for the implementation thereof shall have upon:
|
|
A)
|
the ability of the Project Company to perform its obligations; or
|
|
B)
|
the losses of revenue or other losses or costs incurred by the Project Company which may arise as a result of such Government DCP Amendment being implemented and made in the form or at the time contained in the relevant Government DCP Change Notice.
|
2.1.5
|
The Project Company Comments shall include its best estimate of the difference between the anticipated effects upon, and financial implications for, the Project Company of:
|
|
A)
|
the Government DCP Amendment being implemented in the form contained in the relevant Government DCP Change Notice without the Government taking into account and implementing the Project Company Comments; and
|
|
B)
|
the Government DCP Amendment being implemented in a form which is a modification of that form contained in the relevant Government DCP Change Notice, in which modified form the Government does take into account and implements the Project Company Comments.
|
2.1.6
|
Upon receipt of any Project Company Comments, the Government shall take such Project Company Comments into account before making any Government DCP Amendment and, where such Project Company Comments would, if implemented, mitigate any adverse effects upon the Project Company in respect of the matters referred to in paragraph 2.1.4 (A) and 2.1.4 (B) above, the Government shall modify its proposed Government DCP Amendment where possible to implement such Project Company Comments and ensure that such Project Company Comments are incorporated into any Government DCP Amendment.
|
2.1.7
|
The Project Company may publish the Development Control Plan from time to time upon its websites and copies may be provided to Third Parties.
|
2.1.8
|
The Government shall do all things necessary, including issuing any rules, regulations, decisions and passing any Laws in the form of Ministerial Decisions, required to ensure that the Project Company is able to exercise its rights with respect to the DCP and its enforcement as contemplated by the Development Agreement.
|
2.1.9
|
Any DCP Change that is Approved, granted an Approval Waiver or determined to be Approved pursuant to Clause 28.2, shall thereupon come into effect and be enforceable under the Development Agreement. The relevant Ministerial Decision of Amendment specified in Clause 11.6 of the Development Agreement shall be promptly issued and published and the DCP or relevant portions thereof or portions of the Development Agreement shall thereupon be deemed so amended and shall thereafter be acted upon and construed by the Parties accordingly.
|
2.2.1
|
The Parties agree that they foresee the likelihood of Variations occurring as the final detailed design of the Project unfolds.
|
2.2.2
|
The Parties agree therefore that:
|
|
A)
|
if any such Variation is a minor Variation to the overall concept envisioned by the Final Master Plan then the Project Company shall have the absolute right to implement such minor Variation without any Approval, but
|
|
B)
|
if any such Variation is a major Variation to the overall concept envisioned by the Final Master Plan, or a Material Change to the MBO prior to the MBO Completion Date, then such major Variation or Material Change shall require the prior written Approval of the Government, and the Government shall not unreasonably withhold its Approval of any major Variation, and the Government shall not have any obligation to agree a Material Change but, subject to the Law, shall not unreasonably withhold its Approval of any Material Change.
|
2.2.3
|
From time to time the Project Company may give a written notice to the Government requesting its Approval of a Variation (a “Variation Notice”) together with a reasonable amount of detail to substantiate such Variation (a “Variation Proposal”).
|
2.2.4
|
The Government shall ensure that its written Response to such Variation Notice (“Response”) is given within the sixty (60) day period specified in Clause 11.5 (the “Response Period”) including ensuring that all relevant Government Authorities analyze any such Variation Proposal and provide their comments, if any, prior to the relevant Response Date.
|
2.2.5
|
within the Response Period, the Government shall give a Response informing the Project Company of its Approval or rejection of such Variation or of its granting of an Approval Waiver with respect to such Variation, and
|
2.2.6
|
if a Response is not received within the Response Period, or if the Government gives a Response which is a rejection, then such shall be a Dispute which shall be resolved pursuant to the provisions of Clause 28.2.
|
2.2.7
|
any Variation that is Approved, determined to be Approved pursuant to Clause 28.2, or given an Approval Waiver, shall thereupon come into effect and be enforceable under this Development Agreement. The relevant Ministerial Decision of Amendment specified in Clause 11.6 of the Development Agreement shall be promptly issued and published and the Master Plan or portions thereof or portions of the Development Agreement shall thereupon be deemed so amended and shall thereafter be acted upon and construed by the Parties accordingly.
|
» | Royal Court Affairs | |
» | Omagine Inc., a Delaware USA corporation | |
» | Journey of Light, Inc., a New York USA corporation | |
» | Consolidated Contracting Company, S.A., a Panamanian company | |
» | Consolidated Contractors Co. Oman LLC, an Omani company |
1.
|
The seven (7) sphere shaped Buildings, each approximately twenty (20) meters in diameter and identified as item number 1 in the drawing of the Initial Master Plan below in this Schedule 6 are hereby defined as the “Pearls”.
|
|
The entertainment content of the Pearls is more fully described in Part B of this Schedule 6 attached hereto.
|
2.
|
Two (2) hotel Buildings, one being a five star hotel and one being a four star hotel, and identified as item number 2 in the drawing of the Initial Master Plan below in this Schedule 6, are hereby defined as the “Hotels”.
|
3.
|
Notwithstanding the definition in Clause 1, the Minimum Build Obligation is comprised of and constitutes the Substantial Completion in accordance with the DCP and the requirements of this Development Agreement of the construction of (a) the seven (7) Pearls, and (b) one (1) of the Hotels.
|
4.
|
The Project Company will keep the Government informed regarding the progress of the design and construction of the Minimum Build Obligation via the MBO Report to be delivered to the Government pursuant to Clause 7.1.3.
|
5.
|
The Parties agree that the Final Master Plan will be prepared by the Project Company and Approved by the Government pursuant to the provisions of the DCPF
.
|
(i)
|
providing entertainment with a purpose as a part of a uniquely spectacular tourist experience,
|
(ii)
|
inspiring all visitors, especially youth to let their imaginations soar,
|
(iii)
|
transferring accurate knowledge and information in a subtle and entertaining fashion,
|
(iv)
|
sparking the visitors’ imagination and confidence in their own personal potential,
|
(v)
|
aligning with the Sultanate’s objectives for promoting human capacity building in support of ongoing Government economic and industrial planning efforts,
|
(vi)
|
maintaining the Sultanate’s culture and rich bio-diversity, and
|
(vii)
|
enjoying the entertainment experience.
|
1.
|
Goals / Objectives
|
2.
|
Storyline
|
3.
|
Selected Experiences
*
|
*
|
Omagine will involve renowned scientific, historical and cultural experts from universities (including Farouk El-Baz from Boston University and Omani professors from SQU), government, international institutions, business and specialized NGO’s to serve on the “Content Development Advisory Board” (CDAB) for the Pearls. This is done to assure accuracy of content as well as a broad spectrum of intellectual perspective.
|
·
|
To discover and communicate the story of Oman’s people, history, diverse landscape, environment, bio-diversity, cultural heritage and enlightened leadership in a distinctive and inspirational manner.
|
·
|
To celebrate Oman’s past and present as the Sultanate looks to the future.
|
·
|
A stunning motion ride experience that takes visitors on a breathtaking flight of discovery through Oman. Using the latest high definition projection and IMAX technologies the beauty of Oman’s coastline, mountains, seas and changing topography is revealed. Hidden beaches, rocky cliffs, majestic forts, empty desert, ancient cities, deep caves and colorful reefs are visited. The diverse grandeur of the desert at night, the ancient cities and modern and ancient wonders will ignite visitors’ imaginations inspiring and encouraging them to see more of the country.
|
·
|
An interactive sports and activity center will provide young and old with the opportunity to take part in “virtual” extreme sports in perfect safety as they hang-glide in the Hajar Mountains, sand-board, or para-surf along the Salalah coast. Excitement and discovery abound in a wide range of entertaining competitions and events that encourage the visitor to explore Oman further.
|
·
|
An Omani heritage center providing music, dance, historical data and stories via cinema, exhibits and interactive media from around Oman
|
·
|
A musically guided adventure journey up close and personal (possibly with indigenous animals including the Arabian Oryx, the turtles of Ras Al-Had and the famous Arabian Horses of Oman). The experience - whether live or digital - invites visitors to feel at home and encourages them to explore Oman’s amazing wadis, caves and other scenic areas.
|
·
|
To celebrate regional and world cultures though inventive, exhilarating and entertaining displays of art, music, architecture, cuisine, fashion, language, spirituality, architecture and vibrant forms of folk knowledge and traditions.
|
·
|
To expand and illuminate visitors’ perceptions and understanding of the contributions and influences of different cultures throughout history.
|
·
|
Visitors take a ride-based journey that explores the origins of civilization in Mesopotamia, the flowering of Arabian culture and the transmission to the West by great Arab scholars of the ancient wisdom of Greece. The journey navigates the diverse world cultures of yesterday and today and demonstrates (often in witty and clever ways) the flow of cultural influences between and among the different cultures around the world.
|
·
|
Around a central stage used for international music performances, fashion shows and other diverting entertainment, visitors relax while enjoying a variety of foods from around the world.
The Culture Pearl is also the central hub of the Omagine Film Festival where award winning culture
films will be shown and refreshed periodically. [ possibly Omagine T.V. – depending upon regulatory requirements and licensing issues ]
|
·
|
A multi-purpose gallery space provides changing exhibitions of works that exemplify the commonality of human experience throughout history and provide a thought provoking look at values and ethics of multiple cultures. These exhibitions may be two or three dimensional art works, literature, music or dance. The arts – in all their forms – have always been an inspirational and illuminating feature in the quest for human development. An adjacent space provides virtual access to the great museums and galleries of the world.
|
·
|
A media resource center provides a space for visitors (both young and old) to explore and “play with” their own creative abilities in a relaxed and entertaining way. They will have access to the latest technologies demonstrating how they can even create their own media productions. If desired, they can refer and consult with the Culture Pearl’s “Omagineers” - experts in art and technology on hand for advice.
|
·
|
A center of modern Arabian Culture provides music, dance and cinema from around the Arabian world. This includes a digital internet based voting system through which young visitors can review performers and performances and make recommendations for future shows and features.
|
·
|
To present experiences demonstrating the achievements of the most innovative people, leaders, partnerships
and policies which have
shaped the world and advanced economic, scientific and social development.
|
·
|
To use entertaining concepts and ideas that light up minds and spark imaginations in order to motivate the new generation of entrepreneurs, inventors, risk-takers and innovators who will create the future of the region and the world.
|
·
|
To cleverly reveal how imagination is the catalyst for innovation and how past innovations are not just history – they actually created new futures.
|
·
|
To contribute to the development of the “home grown” human capital in Oman and the Arab world that is a requirement for the “Knowledge Society” of the future.
|
·
|
Visitors enter a ‘time machine’ where they witness the great inventions and inventors that have changed our world. The time machine is a large motion simulator with projection windows looking out on the places it visits.
|
·
|
On leaving the time machine visitors then enter an interactive demonstration area where “Omagineers” assist them to explore the latest innovations and access information about scientific activity today. It’s a highly interactive area in which visitors explore the properties of the world around them through a wide range of hands on activities. There are demonstration areas where facilitators can show the work of different scientists, talk to the audience and demonstrate their findings. Animators will be available to help visitors use the exhibits. The area will include demonstrations and exhibits relevant to school curricula.
|
·
|
Using actors, interactive media, computer generated graphics and simulator technology, visitors to Omagine’s Innovation Pearl have the opportunity to see, meet and talk with a number of the great inventors, leaders and most innovative people of the past - people who have shaped the way we live today. Great inventors, scientists and government, military and business leaders from the past will talk about their lives and experiences. The conversations will focus on the character, ethics and imagination of each individual; the hurdles and doubts they had to overcome; and the reasons they were inspired to take the chances they took to try something new and unique. Examples
include: Archimedes; Jabir
ibn Hayyan; Al Jazari; Leonardo da Vinci; Einstein; Plato, Salaadin and the philosophers in the Bagdad Academy of Wisdom.
Many characters - innovators from all walks of life - will be chosen from the Arab world. Characters can be re-created in a number of media. Some can be animatronics, some virtual 3D projections and some holographic projections. Other techniques such as 3D characters on large plasma screens, “Pepper’s Ghost” or multimedia interactions via ‘time machine’ consoles may also be used. Large scale video projections onto glass can bring ‘real’ actors into 3D sets. Some characters are operated by trained animators who conduct conversations with visitors in real time via remote control while other characters converse via interactive screens where visitors choose from a range of questions.
|
·
|
The Innovation Pearl will personalize the experiences for visitors by allowing them to access a range of animations, simulations, games and tests via smart cards. This entertaining activity will also assess aptitudes for a range of innovations and inspire visitors to positively influence their societies.
|
·
|
To entertain visitors with mind-opening experiences demonstrating how our lives are linked to and dependent upon energy - from the food we eat; to the way we entertain ourselves; to the way we organize and run our societies.
|
·
|
Visitors will be slowly spun in their seats as they revolve around a stage viewing unique shows projected onto the inner shell of the Energy Pearl. The various shows focus on energy related stories including the story of how the earth spinning around the sun captures and stores so much of its energy in plants and fossil fuels.
|
·
|
In a highly interactive fun experience visitors learn the ways in which the energy of the sun, wind and water are captured and used in their day to day lives.
|
·
|
Visitors may interact with the Energy Pearls’ “Omagineers” (or virtually with cutting edge engineers and scientists) to discover ingenious and fun ways of generating and using energy. The inspiring scientific goal of generating clean waste-free energy from nuclear fusion (as the sun does) vs. nuclear fission will be examined.
|
·
|
Up to the minute science demonstrations facilitated by “Omagineers” will amaze and enlighten visitors about recent advances in biology, DNA mapping and discoveries of how the human body obtains, converts and utilizes energy.
|
·
|
An entertaining sports and health café provides a non-threatening atmosphere to transmit the most current scientific nutrition advice and best practices – both Eastern and Western – available today for our collective health and well being. Virtual sports celebrities provide advice and describe various fitness technologies. Children and adults can compete in the virtual Omagine Games.
|
·
|
Futuristic movement based and virtual experiences will allow visitors to explore space in search of energy sources and to interact with science fiction writers, engineers and “Omagineers” about how to exploit the massive energy conversion possibilities of black holes.
|
·
|
To create imaginative and exhilarating experiences by combining live aquarium life with film projections on water screens.
|
·
|
To explore Oman’s navigational history and the beauty, mystery and bounty of life in the world’s oceans and seas.
|
·
|
To travel with the great explorers (including Omani navigators) as they risk all crossing the oceans and seas in search of new worlds and opportunities that lay beyond the horizon.
|
·
|
To examine the positive and negative impacts of man’s exploitation of the seemingly boundless riches of the oceans and seas.
|
·
|
In a unique experience with 4D seating fitted with aquatic tubes, visitors revolve around and/or through a semi-darkened aquarium as barracuda, colorful fish and sea life swim through the audience via the lighted aquatic tubes. This unprecedented experience is accompanied by water curtains and the sounds of the oceans while the Sea Pearl’s “Omagineers” explain various species.
|
·
|
Visitors will partake in experiences – both live and via interactive multi-media technology - featuring many species of unique fish; for example: photo-fores (fish with lights) and the fish with no eyes dwelling in the caves of Oman.
|
·
|
Seated in a motion-based dhow in the center of a 360 degree projection theatre, visitors will explore the oceans as some of the great Arabian and other maritime explorers narrate the journey. Visitors experience the power of the seas and the endless horizons. They are immersed in the excitement of expeditions, trade routes, landfall in new and strange lands - and narrowly escape an attack by pirates out of Basra.
|
·
|
An entertaining and interactive center offering fun packed water rides and experiences (possibly swimming with the dolphins).
|
·
|
Using simulators visitors pass through a “virtual” ocean of marine wonders, navigate the Gulf of Oman or steer a ship to the ports of Muscat, Sohar or Salalah.
|
·
|
From viewing platforms visitors may explore the origin and evolution of life in the sea and the societal and economic benefits mankind derives from the seas. The positive and negative impacts - of mankind’s relationship with the sea and the marine environment will be demonstrated and examined. The marine environments of the GCC states as well as the world’s temperate, tropical and polar areas will be explored.
|
·
|
To use entertaining stories and experiences to explain the world and its natural and man-made wonders - and its greatest wonder - life.
|
·
|
To enlighten visitors regarding earth’s most admired landmarks and healthiest societies and mankind’s influence on life on earth.
|
·
|
To inspire future generations to value, cherish and protect the earth, its environment, its animal and plant life - and most importantly - human life.
|
·
|
Visitors to the Earth Pearl take an awe-inspiring “journey around the world” in a soaring motion-based theatre experience. They see and “feel” the natural and man-made wonders of present day earth ... cool breezes ... great views. Several different inter-changeable film versions will also show Earth’s distant and near past as visitors feel the heat of volcanoes and lava flows as earth takes shape.
|
·
|
Up-close encounters with some of the strangest animals and most beautiful plants from around the world will delight visitors. “Omagineers” and handlers will show visitors how to touch and hold the various creatures and plants while explaining how they live and survive in the wild and how they benefit the world and mankind.
|
·
|
Selecting from an interactive database visitors can choose virtual visits to any of the world’s landmarks, or to many other listed natural wonders, or take a journey along the ancient Silk Road. A special section will focus on and be dedicated to the natural wonders and landmarks of the Arab and Islamic world.
|
·
|
Amusing multi-media display presentations will invite visitors to interact with the world’s weather systems, population shifts and topographical features while entertaining stories reveal what really lies beneath and upon the surface of a surprising earth.
|
·
|
Engaging exhibitions and interactive activities demonstrate for visitors:
|
v
|
the secrets of longevity (diet, nutrition, exercise) common to healthy individuals and societies, and
|
v
|
the delicate balance of Earth’s biosphere and how human activity can assist or harm the Earth’s self-sustaining systems we all depend upon.
|
v
|
glimpses of Earth’s future, wonders to come and cities of the future.
|
·
|
To exhilarate, astonish and inspire visitors with a spectacular outer space show.
|
·
|
To visualize and (somewhat) explain the miracles of space, solar systems, galaxies, the universe and its billions of stars.
|
·
|
To observe the movements of the sun, moon and stars that have always dictated the pace of our lives and guided our navigation across the earth.
|
·
|
To inspire a thirst for further knowledge and discovery as “the sky” continues to reveal new and ever more marvelous secrets.
|
·
|
Visitors will marvel as they peer from their planetarium seats deep into space at the beginning of time when the dust from exploding stars gathers and condenses into the burning spheres that become our solar system and our planet. “Omagineers” explain that they are witnessing the birth of the universe, the formation of galaxies and the birth and death of stars larger than our sun.
|
·
|
Using simulation technology visitors take an enlightening journey as they walk on the moon with Farouk El Baz and fly to the stars with Al Adrisi.
|
·
|
As their seats ascend through the retracting roof of the Sky Pearl, visitors are charmed by a unique view of the Gulf of Oman and the night sky above Omagine.
|
·
|
During the “pre-flight” show to visit a Space Hotel, visitors learn how many discoveries of the Arabian Golden Age in areas such as algebra and astronomy have made space exploration possible today. After the “flight” arrives an “Omagineer” receptionist takes them on a tour of the hotel during which, through a huge observation window in the Space Hotel’s reception area, visitors enjoy a stunning view of earth from space. They visit high-tech luxury rooms, dining areas, space gyms, leisure areas and shops. Each room has windows looking out into space. Visitors might also be taken to a SpacePort where simulator pods take them on short rides into space.
|
·
|
In another area of the Sky Pearl, accessible either through the Space Hotel or separately, visitors may design their own space-cities of the future. This is a large scale group game with teams competing to create the most successful future space-cities based on sustainable criteria.
|
·
|
Nearby at the Sky Pearl’s live bird sanctuary, a variety of live performers, multimedia experiences and “Omagineers” are available to guide visitors as they interact with various birds and learn about the relationship between the ecology and the sky species.
|
·
|
Simulated flights, powerful interactive technologies and space telescopes allow visitors to explore the universe’s lights, radio waves and radiations.
|
Part A. | Project Tasks |
Part B. | Project Tasks Timetable |
Part C. | Preliminary Construction Schedule |
Part D. | MBO Time Schedule |
Part E. | Phased Construction Schedule |
1. | The Government hereby grants to the Project Company the right and full authority pursuant to this Development Agreement to perform the Project Tasks and the Project Company accepts the obligation to perform the Project Tasks. |
2. | With respect to any Project Task that is a construction activity and is part of the MBO, or the Project Company Infrastructure and Utilities, all or part of such Project Task shall be conclusively deemed to be accomplished when a Completion Certificate to that effect is issued by the Consultant and Approved by the Government. |
3. | With respect to any Project Task that is a construction activity and is not part of the MBO, or the Project Company Infrastructure and Utilities, all or part of such Project Task shall be conclusively deemed to be accomplished when a written certificate attesting to the Substantial Completion of such Project Task, which written certificate need not be Approved by the Government, is issued by a specialized independent consultant appointed by the Project Company. |
4. | The Project Company may perform the Project Tasks itself or may procure the performance of any or all of the Project Tasks by any person. |
5. | Attached hereto as Schedule 7B is the “Project Tasks Time Schedule” which is an indicated time schedule for the start and completion dates (the “Milestone Dates”) for the various Project Tasks pertaining to the Development and construction of the Project. |
Attached hereto as Schedule 7C is the “Construction Time Schedule” which is an indicated time schedule for the Substantial Completion of all construction activities required for the Omagine Project. | |
Attached hereto as Schedule 7D is the “Minimum Build Time Schedule” which is an indicated time schedule for the Substantial Completion of all construction activities required to complete the MBO. The Parties hereby agree that the MBO consists of the Substantial Completion of the construction of (a) the seven (7) Pearls, and (b) one (1) of the hotels, as further specified in paragraph 3 of Schedule 6A. | |
Attached hereto as Schedule 7E is the “Phased Construction Schedule” which is an indicated time schedule for the various phases of all construction activities required for the Omagine Project. | |
The preliminary Milestone Date for the execution of the Principal Construction Contract is within one year from the Effective Date. After execution of such Principal Construction Contract, the MBO Milestone Dates shall be finalized and linked to the Project Tasks Time Schedule and a revised Schedule 7B, C, D and E shall be issued by the Project Company. | |
Subject always to the requirements of this Development Agreement in respect of the completion of the MBO within 5 years of the Effective Date, the Project Company shall from time to time update the Construction Time Schedule and the Minimum Build Time Schedule and shall submit such updates to the Government. | |
Milestone Dates are dates after the Effective Date as shown on the Project Tasks Time Schedule and may be varied from time to time by agreement of the Parties. |
1.
|
The Government will procure the construction of the:
|
|
a)
|
Roads to the Road Connection Points and the Inner Boundary, and
|
|
b)
|
associated pedestrian walkways, curbs and reservations, ancillary hard and soft landscaping, signage and traffic management systems to the Inner Boundary (collectively, the “Road Elements”)
|
|
c)
|
the Water Utility Tie-ins, and
|
|
d)
|
all associated infrastructure either outside the Project Area or within the Perimeter Landscaped Area (as defined in Part C of Schedule 4), and associated with any of the foregoing
|
2.
|
The Parties shall grant each other all access and other rights as may be reasonably required for the purposes of the Government’s construction, installation or delivery of the Roads, the Road Elements, the connection of the Roads at the Road Connection Points, and for the purpose of the Government’s connection of the water utility to each appropriate Water Utility Tie-in.
|
3.
|
The Government will procure the supply and delivery of the potable water utility to the relevant Water Utility Delivery Point as set forth in this Schedule 8 and in Schedule 17.
|
4.
|
The Government will:
|
|
(i)
|
procure and provide each Water Utility Tie-in for potable water as set forth in this Schedule 8 and in Schedule 17 that is required to connect the potable water utility at each Water Utility Delivery Point, and
|
|
(ii)
|
design, build, install, test, maintain and connect each Water Utility Tie-in and the infrastructure necessary to connect the potable water utility to the PC Distribution Network.
|
5.
|
The Government shall, for the purposes of complying with its obligations with respect to the provision of the Government Infrastructure, be granted free access to, and use of, the PC Distribution Network and the Government will procure that all quantities of water consumed or utilized within the Project Area shall be delivered, collected or removed, as the case may be, by underground route and sold and billed directly by the Government to the end user thereof within the Project Area (an “End User”).
|
6.
|
The Project Company shall liaise closely with the Government with regard to the Government’s design, schedule of work, completion and connection of each Water Utility Tie-in at each Water Utility Delivery Point to ensure that such construction and connection takes place in accordance with the relative specification set out in the Final Master Plan.
|
7.
|
The Government or the Government company supplying potable water to the Project Area shall procure that the quantities of potable water delivered to End Users shall be determined on a monthly basis by a reading of the relevant End User’s meter.
|
8.
|
The Government undertakes to Substantially Complete or procure the Substantial Completion of the construction of all pipes, trenches and other related structures up to and including each Water Utility Delivery Point and to the Inner Boundary so that each Water Utility Tie-in has been tested and commissioned and has the full capacity of potable water available for immediate use by End Users not later than the dates specified therefore in Table 8.1 below in this Schedule 8.
|
9.
|
The Government undertakes to Substantially Complete or procure the Substantial Completion of the construction of all:
|
|
a)
|
Road Elements, and
|
|
b)
|
Roads up to each Road Connection Point and to the Inner Boundary
not later than that date specified therefore in the table below in this Schedule 8.
|
10.
|
It is understood and agreed by the Parties that:
|
|
a)
|
except as otherwise stated herein, the Government, at its cost and expense, will procure all property rights, easements or rights-of-way necessary to build, install and deliver:
|
|
(i)
|
the Government Infrastructure and, if applicable, the Private Sector Public Infrastructure and Utilities and any infrastructure associated therewith over, under and/or through the Perimeter Landscaped Area (as that term is defined in Schedule 4) to the Inner Boundary, and
|
|
(ii)
|
the Road Elements; and
|
|
b)
|
the Government shall:
|
|
(i)
|
connect the Roads to the Main Road at the appropriate Road Connection Point, and
|
|
(ii)
|
connect the potable water utility to the appropriate Water Utility Tie-ins at the appropriate Water Utility Delivery Points, and
|
|
(iii)
|
deliver the potable water via the PC Distribution Network to the End Users; and
|
|
c)
|
all references to the location of any Road Connection Point, Water Utility Delivery Point or Water Utility Tie-in in this Schedule 8 or in the drawings contained herein or in this Development Agreement are, notwithstanding anything to the contrary contained elsewhere in this Development Agreement, references to such locations at points on the Inner Boundary. If, for the convenience of the Parties or otherwise, any such Road Connection Point, Water Utility Delivery Point or Water Utility Tie-in is actually located or constructed at a location other than a point on the Inner Boundary, then the Government shall continue to be responsible for the design, construction and completion at its cost and expense of all Government Infrastructure and, if applicable, the Private Sector Public Infrastructure and Utilities up to the Inner Boundary.
|
a)
|
Roads to be constructed up to the Inner Boundary:
|
The Roads shall be at least two (2) lanes in either direction with the appropriate turning lanes, roundabouts, traffic signage and signals. The Roads are to be constructed from the Main Road to the Inner Boundary and through and upon the Perimeter Landscaped Area at the locations indicatively shown on the Roadways Infrastructure and Utilities drawing attached below as Figure 1 to this Schedule 8 (the “Roadways Drawing”) and such Roads are to be connected to the four Road Connection Points and to the Inner Boundary at the locations shown indicatively on the Roadways Drawing and definitively in the Final Master Plan. The ultimate disposition by the Project Company of the existing unpaved service road within the Perimeter Landscaped Area or Project Area will be specified in the Final Master Plan. The Roads are to be constructed in accordance with the specifications contained in the Final Master Plan.
|
|
b)
|
Timing for completion:
|
The Substantial Completion of the Roads will be required within eighteen (18) months after the Effective Date.
|
a)
|
Infrastructure to be constructed:
|
Underground potable water trunk mains connected to the appropriate connection points at the relevant Water Utility Tie-ins with a capacity sufficient to supply not less than 8,200 cubic meters of potable water per day
(a)
to the Project Area at the minimum pressure and flow rates to suit the form of Development envisaged by the Development Control Plan.
|
|
b)
|
Points up to which infrastructure for potable water is to be constructed and points at which Water Utility Tie-ins for potable water are to be constructed and connected:
|
All potable water infrastructure is to be constructed up to the Inner Boundary. The Water Utility Tie-ins shall be situated and constructed at the Water Utility Delivery Points on the Inner Boundary and such points are indicatively marked A, B, and C on the preliminary Water, Communications, Electricity drawing below (the “WCE Drawing”) and their precise locations will be definitively shown in the Final Master Plan.
|
|
c)
|
Timing for supply of potable water:
|
The supply of potable water shall be available commensurate with the start of construction and shall be provided progressively at the volumes requested from time to time by the Project Company to suit the rate of Development as determined from time to time by the Project Company. Table 8.1 below sets out the indicative timing required for the supply of such potable water which timing may be varied by the Project Company from time to time by reasonable notice to the Government.
|
(a)
|
Assumes that potable water is used for both (i) human use and consumption and (ii) for irrigation purposes. See Schedule 17. If treated sewage is suitable for use as irrigation water the amount of required potable water supply may be reduced.
|
Volume per day (m3)
|
Months
|
|||||
902 | 4 | |||||
1,886 | 16 | |||||
4,674 | 32 | |||||
5,822 | 44 | |||||
6,724 | 51 | |||||
8,200 | 60 |
1.
|
2.
|
Civil Defense Facilities are required within the Project Area, then the Parties hereby agree that Clause 6.12 of the Development Agreement is not deleted and shall remain in full force and effect and all dates and time requirements specified in Clause 6.12 which are measured from the Effective Date will instead be measured from the date of any such notification.
|
● | Ensure support from local communities, | |
● | Build strategic alliances with local Omani vendors | |
● | Focus on product and service quality. |
A) | retail outlets; stores & marketplace | |
B) | restaurants; kiosks | |
C) | entertainment venues; amphitheatre | |
D) | marina | |
E) | Pearl buildings & exhibitions | |
F) | open areas | |
G) | beaches | |
H) | boardwalk | |
I) | roads and pathways within the Project Area | |
J) | Perimeter Landscaped Area | |
K) | marine structures | |
L) | created waterways | |
M) | parks & gardens | |
N) | utility services & drainage | |
O) | parking areas |
v | Using creativity, innovation and imagination to produce exciting, award winning property developments and content |
v | Maintaining financial flexibility, conservative financial structure and cost controls |
v | Ensuring support from local communities |
v | Maintaining high corporate governance standards |
v | Building strategic international alliances with local operators |
v | Employing effective human resources development strategies |
v | Focusing on product and service quality |
v |
Maintaining a robust approach to health, safety and environmental impacts
|
1.
|
Project Company Event of Default
.
|
2.
|
Set off of Monies by the Government and Claims by the Government
.
|
|
2.1
|
Against the assessed compensation referred to in section 1 above, the Government shall be entitled to set off monies due and owing to it by the Project Company in relation to the Development Agreement and also set off other monies which shall include as a minimum the following items:
|
|
(a)
|
all net profits after interest and taxes made by the Project Company and Landmark Company as indicated in Schedule 24 or any other subsidiary or organization to whom the Project Company may transfer the Project Assets or assign its obligations up to the date of termination of the Development Agreement as finally determined by the Independent Expert Panel;
|
|
(b)
|
compensation for the loss of employment and opportunities for Omani nationals, businesses employed or potentially employed in or by the Project and the damage to the Omani tourism sector which compensation and damage is hereby assessed at a liquidated damages amount of seventeen point five percent
(17.5%)
of the total amount, as finally determined by the Verification Engineer, which would have been spent by the Project Company in relation to any of the Minimum Build Obligations which did not achieve Substantial Completion due to the termination: and
|
|
(c)
|
compensation for the loss of revenue to the Government which revenue would have resulted from the Project proceeding and which compensation is hereby assessed at a liquidated damages amount of five
(5%)
of the total amount, as finally determined by the Verification Engineer, which would have been spent by the Project Company in relation to any of the non-Minimum Build Obligations due to be Substantially Completed within the Minimum Build period which were not Substantially Completed due to the termination.
|
|
2.2
|
If all the money allowed to be set off by the Government pursuant to any section of this Schedule 12 is subtracted from the compensation due to the Project Company pursuant to any section of this Schedule 12 and the result of such subtraction is either zero or a negative number, then the compensation that would otherwise be due to the Project Company hereunder but for such set off shall be zero,
provided that
, notwithstanding the foregoing, this provision shall not in any manner limit the Government’s right to make a claim against the Project Company in respect of this or any other failure by the Project Company to faithfully fulfill its obligations under the Development agreement.
|
3.
|
Government Event of Default/Government Risk Event/Change of Law
.
|
|
3.1
|
In the event that the Project Company terminates the Development Agreement for:
|
i.
|
a Government Event of Default under Clause 21.2; or
|
ii.
|
a Government Risk Event under Clause 18.5; or
|
iii.
|
a Change of Law under Clause 19.6(d);
|
|
3.1.1
|
For the Existing Land or Reclaimed Land
.
|
|
(a)
|
the Project Land Market Value for the Freehold Title in respect of all Existing Land or Reclaimed Land transferred by the Project Company back to the Government,
|
|
(b)
|
all sums paid by the Project Company by way of Usufruct Fees which relate to the use of the Existing Land or the Reclaimed Land after the date of the termination,
|
|
(c)
|
the sums the Project Company has paid in accordance with Clause 5.3
and Clause 6.12.1 of the Development Agreement.
|
|
3.1.2
|
For the Completed Infrastructure, Uncompleted Infrastructure,
Completed Units and Uncompleted Units
.
|
|
3.2
|
Against the assessed compensation referred to in Clause 3.1 above, the Government shall be entitled to set off monies due and owing to it by the Project Company in relation to the Development Agreement together with any claims the Government may have in respect of taxes, duties, charges and money due to the Government from the Project Company.
|
4.
|
Force Majeure
.
|
|
4.1
|
In the event that the Development Agreement is terminated due to an Event of Force Majeure under Clause 17, the following compensation will be due to the Project Company:
|
|
4.1.1
|
For the Existing Land
.
|
|
(a)
|
the same per square meter rate for the Freehold Title to the Existing Land or Reclaimed Land as was paid by the Project Company to the Government under the request for transfer of the Freehold Title in respect of all such Existing Land or Reclaimed Land transferred by the Project Company back to the Government;
|
|
(b)
|
any sum paid by the Project Company by way of Usufruct Fees which relate to the use after the date of the termination of the Existing Land or the Reclaimed Land.,
|
|
(c)
|
the sums the Project Company has paid in accordance with Clause 5.3 and Clause 6.12.1 of the Development Agreement.
|
|
4.1.2
|
For the Completed Infrastructure, Uncompleted Infrastructure
, Completed Units and Uncompleted Units
.
|
|
4.2
|
Against the assessed compensation referred to in Clause 4.1 above, the Government shall be entitled to set off monies due and owing to it by the Project Company in relation to the Development Agreement together with any claims the Government may have in respect of taxes, duties, charges and money due to the Government from the Project Company.
|
5
.
|
Freehold Title Transfers and Usufruct Rights
.
|
|
5.1
|
For the avoidance of any doubt, if this Development Agreement is terminated for any reason, then all transfers of Freehold Title to, and sub-usufruct or lease agreements with respect to, Buildings, Units or Plots (the “Properties”) to Third Party Purchasers or with Third Party Users that have been completed as at the date of termination and made in accordance with the terms of this Development Agreement, shall not be reversed, voided or otherwise nullified by the Government and the owners or lessees of such Properties will continue to enjoy the rights of a lessee or of an owner of such Freehold Title in respect of those Properties and the provisions of this Development Agreement relating to such Properties, including the Project Company rights, shall continue to apply in relation to such Properties.
|
|
5.2
|
If this Development Agreement is terminated for any reason, then all registered transfers of Usufruct Rights and/or Freehold Title to any Third Party Developer, as at the date of such Termination, with respect to Plots which comprise a Specific MBO shall be governed by Clause 5.4 of the Development Agreement.
|
|
5.3
|
The Government as soon as practicable after the termination under Clause 21.1 of the Development Agreement but no later than one hundred twenty (120) Days after such termination, has the option to acquire the remainder of the Project Area in respect of which Freehold Title has been transferred to the Project Company.
|
6.
|
Miscellaneous
.
|
|
6.1
|
The Project Company shall use its reasonable efforts to retain all receipts, payment and contract documentation related to the Project until the MBO Completion Date, and thereafter to the extent they are relevant to the subject matter of this Schedule 12. In the event of the termination of this Development Agreement, such relevant receipts, payment and contract documentation shall be provided to the Independent Expert Panel for its use and consideration in whatever form of valuation is applicable.
|
|
6.2
|
For the purposes of this Schedule 12, if the Parties are unable to agree on what constitutes Completed Infrastructure or Completed Units, then this issue shall be determined by the Verification Engineer.
|
7.
|
Schedule 12 definitions
.
|
|
(a) in the case of Completed Units or Completed Infrastructure, all of the Project Company’s costs of completing the Units and infrastructure (including the contract price of the relevant construction contracts) or the Market Value whichever is the lower;
|
|
(b) in the case of Uncompleted Units or Uncompleted Infrastructure (i) the contract price for consultancy and construction, any amounts paid by the Project Company under those consultancy, construction or other related contracts, the value of the work completed at the date of termination, the cost of any remedial work, the cost to complete the Units or infrastructure, the administration, finance and other charges to be reasonably and properly incurred by the Government in completing the Units and infrastructure or (ii) the Market Value, whichever is the lower;
|
|
(c) in the event that the Completed Units, Uncompleted Units, Completed Infrastructure and/or Uncompleted Infrastructure are in substantial compliance with the provisions of the Development Agreement as determined by the Verification Engineer, the provisions of either sub clause (a) or sub clause (b) above will apply, as the case may be, and in the event that such Completed Units, Uncompleted Units, Completed Infrastructure and/or Uncompleted Infrastructure are not in such substantial compliance, then an assessment will be made by the Verification Engineer of the cost of achieving such compliance (provided that if such substantial compliance cannot be achieved then the Government shall not pay for any Completed Units, Uncompleted Units, Completed Infrastructure or Uncompleted Infrastructure to the extent that such substantial compliance cannot be achieved (the “Non-Compliant Construction”) and the Government shall be entitled to compensation for the reasonable costs incurred by it for the demolition and removal of the Non-Compliant Construction and the return of the Project Area to its original condition so far as is reasonably practicable and taking into account that the relevant part of the Project Area will not be returned to its original topography). Any future revenue which the Project Company may have derived from the sale, lease or operation of the Completed Units will not be assessed nor form a part of the compensation to be paid by the Government to the Project Company.
|
|
“
Project Land Market Value
”
means the difference between Rials Omani one hundred (RO 100) per square meter and the Market Value of the relevant Existing Land and Reclaimed Land at the date of termination, save that the Market Value of such Existing Land or Reclaimed Land shall not in any event exceed Rials Omani three hundred (RO 300) per square meter and such Market Value shall be capped at a maximum of Rials Omani three hundred (RO 300) per square meter at the date of termination. However in the event that the Project Land Market Value is determined to be less than Rials Omani one hundred (RO 100) per square meter then the Project Company shall be paid the actual Land Price paid by the Project Company to the Government for the relevant Existing Land or Reclaimed Land.
|
|
(a)
|
in the case of Completed Units or Completed Infrastructure which are in substantial compliance with the provisions of the Development Agreement as determined by the Verification Engineer, then the valuation shall be in accordance with the above principles;
|
|
(b)
|
in the case of Uncompleted Units or Uncompleted Infrastructure the valuation shall take into account such items as the Independent Expert Panel considers relevant, which may include the contract price for consultancy, construction, any amounts paid by the Project Company under those consultancy, construction or other related contracts, the value of the work completed at the date of termination, the cost of any remedial work, the cost to complete the Uncompleted Units or Uncompleted Infrastructure, the administration, finance and other charges to be reasonably and properly incurred by the Government in completing the Uncompleted Units and Uncompleted Infrastructure, and
|
|
(c)
|
in the event that the Completed Unit, Uncompleted Unit, Completed Infrastructure or Uncompleted Infrastructure are in substantial compliance with the provisions of the Development Agreement, as determined by the Verification Engineer, the provisions of either sub-clause (a) or sub-clause (b) above will apply, as the case may be, and in the event that such Completed Unit, Uncompleted Unit, Completed Infrastructure or Uncompleted Infrastructure are not in such substantial compliance then an assessment will be made by the Verification Engineer of the cost of achieving such substantial compliance (provided that if such substantial compliance cannot be achieved then the Government shall not pay for any Completed Unit, Uncompleted Unit, Completed Infrastructure or Uncompleted Infrastructure to the extent that such substantial compliance cannot be achieved (the “Non-Compliant Construction”) and the Government shall be entitled to compensation for the reasonable costs incurred by it for the demolition and removal of the Non-Compliant Construction and the return of the Project Area to its original condition so far as is reasonably practicable and taking into account that the relevant part of the Project Area will not be returned to its original topography);
|
|
“
Uncompleted Infrastructure
”
means those parts of the Project Company Infrastructure and Utilities (from the nearest completed junction point) that as at the date of termination have yet to achieve Substantial Completion as certified by the Verification Engineer.
|
|
“
Uncompleted Units
”
means all Units that as at the date of termination have yet to achieve Substantial Completion as certified by the Verification Engineer.
|
|
“
Verification Engineer
”
means a qualified experienced independent professional engineer, who shall be jointly appointed by the Parties and failing agreement shall be appointed by the Independent Expert Panel. The costs of the Verification Engineer shall be borne by the Party who is in default and in the case of Force Majeure shall be borne equally by the Parties. The Verification Engineer shall rely fully on any Completion Certificate issued as of the date of any termination of the Development Agreement and for the purposes of this Schedule 12, Substantial Completion shall mean Substantial Completion as evidenced by the existence of any such Approved Completion Certificate, or as certified by the Verification Engineer.
|
1.
|
ACQUISITION OF FREEHOLD TITLE
|
2.
|
PROJECT COMPANY’S ACQUISITION OF FREEHOLD TITLE
|
2.1
|
The Project Company shall give a ninety (90) Days written notice (as per the attached form) to the Government Authorities, pursuant to Clause 27 of the Development Agreement, of its intention to acquire the Freehold Title (“Notice of Intention to Purchase”).
|
2.2
|
The Parties shall execute thereafter, but no later than ninety (90) Days from the date of delivery of the Notice of Intention to Purchase to the Government, a Freehold Sale and Purchase Agreement for the respective Unit, Plot or sub-Plot of the Project Area (“Purchased Unit”), in the format as required by the Law.
|
2.3
|
The registration fee for the transfer of the Freehold Title to the Project Company shall be based on the Land Price.
|
2.4
|
Upon the transfer of the Land Price for the respective Purchased Unit and within ninety (90) Days from the Delivery date of the Request, the Government shall transfer the Freehold Title of the Purchaser’s Plot to the Purchaser; free from any other Third Party or Customary Rights and do all such things, registration acts and declarations as are necessary for such transfer to become effective as soon as practicably possible.
|
3.
|
AFFILIATE’S ACQUISITION OF FREEHOLD TITLE
|
3.1
|
The conditions stated in Clauses 4 and 24 of the Development Agreement have been complied with.
|
3.2
|
The Project Company shall give a Notice of Intention to Purchase to the Government of its intention for an Affiliate of the Project Company to acquire the Freehold Title.
|
3.3
|
The Parties shall execute hereafter, but no later that ninety (90) Days from the date of delivery of the Notice of Intention to Purchase to the Government, a Freehold Sale and Purchase Agreement for the Purchased Unit, in the format as required by the Law.
|
4.
|
THIRD PARTY DEVELOPER OR THIRD PARTY PURCHASER’S ACQUISITION OF FREEHOLD
|
4.1
|
Notwithstanding Clause 1 hereof, the Government shall be under no obligation to transfer Freehold Title directly to Third Party Purchasers of individual residences. In such case, the Project Company or an Affiliate shall purchase the Freehold Title from the Government and register the same, after which time the Freehold Title may then be sold to the Third Party Purchaser or Third Party Developer in accordance with a commercial sales agreement entered into between the Parties. Such commercial sales agreement shall reflect the full commercial value of the building apartment or structure at the time of registration of the transfer of the Freehold Title.
|
4.2
|
The Project Company may, at any time, assign the right to acquire Freehold Title to a, Plot or sub-Plot, to a Third Party Developer, a Third Party Purchaser or any of their respective Affiliates. However registration of a Plot or sub-Plot may only occur after Substantial Completion or in accordance with Clause 6.7 of the Development Agreement.
|
4.3
|
If the Project Company assigns the right to acquire Freehold Title to any Third Party Developer or Third Party Purchaser, then such Third Party Developer or Third Party Purchaser shall not be entitled to further assign such right to any Third Party.
|
4.4
|
At any time after Substantial Completion, or if prior to Substantial Completion upon satisfaction of the requirements set out in Clause 6.7 of the Development Agreement and upon a written request by the Project Company, the Government shall directly transfer a Freehold Title of a Unit to a Third Party Developer or a Third Party Purchaser (each referred to hereinafter as “Purchaser”), provided that the Project Company has:
|
(a)
|
declared in writing to the Government that it has executed a valid agreement with the Purchaser regarding the assignment of its Freehold Title acquisition rights under the Development Agreement to the Purchaser;
|
(b)
|
requested the Government to register Freehold Title in accordance with the conditions set out in the Development Agreement (“Request”);
|
(c)
|
provided the Government with all necessary details and copies of documents, as are legally required, for the valid registration of the Purchaser’s Unit from the Government directly to the Purchaser; and
|
(d)
|
provides evidence that there is deposited into the designated Government Account, the Land Price for the Purchaser’s Unit.
|
4.5
|
The Government and the Purchaser shall execute not later than thirty (30) Days after the delivery of the Request, a Freehold Sale and Purchase Agreement for the Purchased Unit, whereby the Government’s sole consideration shall be the Land Price.
|
4.6
|
Upon the transfer of the Land Price for the respective Purchased Unit and within ninety (90) Days from the Delivery date of the Request, the Government shall transfer the Freehold Title of the Purchaser’s Plot to the Purchaser; free from any other Third Party or Customary Rights and do all such things, registration acts and declarations as are necessary for such transfer to become effective as soon as practicably possible.
|
4.7
|
Subject to Clause 6.7 of the Development Agreement, it is expressly agreed that the registration fees to be charged by the Government for the registration of Freehold Title pursuant to an assignment of a right to acquire Freehold Title will be based in the purchase price paid by the Third Party Developer or Third Party Purchaser (which shall be the full commercial value of the land or buildings) that has been paid or is payable to the Project Company, if such assignment is duly notified to the Government. The Freehold Title must be registered within twelve (12) Months from the date of the completion of the buildings to be erected on the Unit which was subject of the transfer.
|
|
For the avoidance of doubt, after Substantial Completion has occurred:
|
(a)
|
the Project Company may transfer the Freehold Title to undeveloped Land directly to any Third Party other than to Third Party Purchasers of undeveloped land to be used for individual residential units;
|
(b)
|
in case of a sale to Third Party Purchasers of undeveloped land for individual Residence Units, Freehold Title shall only be transferred if the necessary infrastructure and utilities have been substantially completed up to the respective Plot (namely roads, pavements, street lighting, electricity, water and sewage), except where infrastructure falls under the responsibility of a Private Sector Utility Company; and
|
(c)
|
the Project Company shall not enter into any new agreements to assign its right to acquire Freehold Title to any Third Party Developers and Third Party Purchasers and the Government shall only transfer Freehold Title directly to the Project Company, or any of its Affiliates, save for transfers or assignments that have been agreed prior to Substantial Completion.
|
4.8
|
Within ninety (90) days from the date of signature of any agreement, regarding the assignment of the right to acquire Freehold Title, the Project Company shall inform the Government in writing of the name and address and particulars of the Plot, sub-Plot or Unit relating to the assignment.
|
5
|
All references in this SCHEDULE 14 to “commercial value” and the valuation in accordance with Clause 4.7 shall be in the first instance proposed by the Project Company to the Ministry of Housing and in the event that the Ministry of Housing disagrees with the Project Company valuation, then the matter shall be determined in accordance with the Law but must always reflect the Open Market Value that would be assessed by an independent Third Party.
|
|
NOTICE OF INTENTION TO PURCHASE
|
(1)
|
THE GOVERNMENT OF THE SULTANATE OF OMAN, as represented by the Ministry of Tourism (the “Government”); and
|
(2)
|
_________________________, having its registered address at P.O. Box_____, PC ______, registered in the Sultanate of Oman with commercial registration No. __________ (the “Project Company”); and
|
(3)
|
[•] a company incorporated with [_____] under the laws of [•] and whose principal office is at [•] (the "
Third Party Developer
").
|
(A)
|
By a Development Agreement signed between the Project Company and the Government (the "
Development Agreement
"), the Parties assumed certain obligations and liabilities towards each other;
|
(B)
|
Pursuant to the Development Agreement a Third Party Developer shall be granted certain rights and assume certain obligations in relation to its specific part of the Project;
|
(C)
|
The Third Party Developer has agreed with the Project Company to take over and perform part of the Project and now wishes to become a Third Party Developer as defined under the Development Agreement and have the corresponding rights and obligations there under; and
|
(D)
|
The Development Agreement provides that a Third Party Developer taking over part of the Project Tasks shall execute an Accession Agreement in this form.
|
1.
|
Unless the contrary is stated, words and expressions defined in clause 1 of the Development Agreement shall, insofar as the same are applicable, bear the same meanings in this Agreement.
|
2.
|
The Third Party Developer hereby accedes and to the Development Agreement with regard to the development of [INSERT PROJECT] (“_____ Project”) and shall be entitled to exercise – jointly with the Project Company - over all rights and obligations related to the _____ Project. The Project Company shall continue to serve as the Government’s single point of contact and the Third Party Developer shall process all applications and requests for approvals via the Project Company.
|
3.
|
In consideration of its becoming a Third Party Developer under the Development Agreement the Third Party Developer hereby:
|
|
3.1
|
confirms that it has been supplied with a copy of the Development Agreement and all relevant documents referred to therein;
|
|
3.2
|
undertakes to the Project Company and the Government that it will from the date hereof be bound by the terms of the Development Agreement and will fulfil, discharge, perform and comply with all the obligations there under in relation to the _______ Project; and
|
|
3.3
|
undertakes to execute all necessary modifications in the Development Agreement and any other documents related thereto.
|
4.
|
The address of the Third Party Developer for the purposes of clause ____ of the Development Agreement shall be [•].
|
5.
|
The Third Party Developer shall only be liable under the Development Agreement in relation to the _____ Project and shall not be liable for any acts or omissions of the Project Company.
|
6.
|
This Accession Agreement shall be governed by and construed in accordance with the laws of Oman and the provisions for arbitration set out in Clause _____ of the Development Agreement shall be read and construed as applicable to this Accession Agreement.
|
|
6.1.1
|
Transfers of Shares may be made at any time by any Shareholder subject to the provisions of the Companies Law and the following:
|
a.
|
Each Party understands and agrees that the transfer by it of Shares is restricted by the terms and conditions of both the Development Agreement and such Party’s Subscription Agreement and no Party shall transfer any Shares unless such transfer is permitted under the Development Agreement, such Party’s Subscription Agreement, this Agreement and the Law.
|
a)
|
Infrastructure to be constructed:
|
Underground Treated Sewage trunk mains connected to the appropriate connection points at the relevant Utility Tie-in with a capacity sufficient to convey to the Project Area not less than 1,050 cubic meters per day of Treated Sewage without surcharge, backup or overflow from the connection point at the relevant Utility Tie-in to the PC Distribution Network and adequate to convey the flow.
|
|
b)
|
Points up to which infrastructure for Treated Sewage is to be constructed and points at which Utility Tie-ins for Treated Sewage are to be constructed:
|
All Treated Sewage infrastructure is to be constructed up to the Inner Boundary. The Utility Tie-ins for Treated Sewage shall be situated and constructed at the Utility Delivery Points on the Inner Boundary and are indicatively marked S1 and S2 on the preliminary sewage collection drawing below (the “Sewage Drawing”) and their precise locations will be definitively shown in the
Final Master Plan
.
|
|
c)
|
Timing for supply of Treated Sewage:
|
The supply of Treated Sewage shall be available commensurate with the start of construction, and shall be provided progressively at the volumes requested from time to time by the Project Company to suit the rate of Development as determined from time to time by the Project Company. Table 17.1 below sets out the indicative timing required for the supply of such Treated Sewage which timing may be varied by the Project Company from time to time by reasonable notice to the relevant Private Sector Utility Company.
|
(a)
|
“Treated Sewage” is defined as sewage which (i) has been treated at a sewage treatment facility not owned or operated by the Project Company, and (ii) is conveyed via underground route to the Inner Boundary for use by the Project Company as irrigation water. If the quality of the Treated Sewage (as defined by the chemical parameters enumerated in the Approved PSPI&U Plan and Final Master Plan) is suitable for irrigation water, the Project Company may accept up to 1,050 cubic meters per day of such Treated Sewage.
|
Volume per day (m3)
|
Months
|
|||||
430 | 8 | |||||
750 | 20 | |||||
1,050 | 32 |
a)
|
Infrastructure to be constructed:
|
Underground Raw Sewage trunk mains will be constructed and connected by the relevant Private Sector Utility Company to the appropriate connection points at the relevant Utility Tie-in so that the Raw Sewage generated within the Project Area and conveyed within the Project Area via the PC Distribution Network to such Utility Tie-in, will be discharged into the relevant Private Sector Utility Company’s Raw Sewage collection system without surcharge, backup or overflow. The aforementioned underground Raw Sewage trunk mains will have the capacity to accept a minimum of 6,400 cubic meters per day of Raw Sewage from the Project Area.
|
|
b)
|
Points up to which infrastructure for Raw Sewage collection and conveyance is to be constructed and points at which Utility Tie-ins for Raw Sewage are to be constructed and connected:
|
All Raw Sewage infrastructure is to be constructed up to the Inner Boundary. The Utility Tie-ins for Raw Sewage shall be situated and constructed at the Utility Delivery Points on the Inner Boundary and are indicatively marked S1 and S2 on the Sewage Drawing and their precise locations will be definitively shown in the Final Master Plan.
|
|
c)
|
Timing for the availability of capacity for receipt of discharge of Raw Sewage:
|
The capacity for discharge of the Raw Sewage generated within the Project Area into the Private Sector Utility Company’s Raw Sewage collection system shall be available commensurate with the start of construction, and shall be provided progressively at the volumes requested from time to time by the Project Company to suit the rate of Development as determined from time to time by the Project Company. Table 17.2 below sets out the indicative timing required for the availability of such capacity requirements, which timing may be varied by the Project Company from time to time by reasonable notice to the relevant Private Sector Utility Company.
|
(a)
|
”Raw Sewage” is defined as wastewater and/or sewage which is conveyed via the PC Distribution Network from the Project Area to the appropriate Utility Tie-in and then via underground route to a sewage treatment facility not owned or operated by the Project Company.
|
Volume per day (m3)
|
Months
|
|||||
704 | 4 | |||||
2,048 | 18 | |||||
3,776 | 26 | |||||
5,248 | 32 | |||||
6,400 | 44 |
a)
|
Infrastructure to be constructed:
|
Underground electrical cables connected to the appropriate Utility Tie-in with a capacity sufficient to supply not less than 56 mega-watts demand and 537 mega-watt-hours of electricity usage per Day plus such other underground cables, wires and/or pipes or conduits as may be required for fibre optics, telephone and satellite communications’ lines in accordance with the specifications shown in the Approved PSPI&U Plan and Final Master Plan and such other Utility services as may be agreed between the Parties from time to time.
|
|
b)
|
Points up to which infrastructure for ET is to be constructed and points at which Utility Tie-ins for ET are to be constructed:
|
All ET infrastructure is to be constructed up to the Inner Boundary. The two Utility Tie-ins for ET shall be situated and constructed (i) at the Utility Delivery Point on the Inner Boundary indicatively marked as point A on the ET Drawing below, and (ii) at one other redundant Utility Delivery Point to be identified in the Final Master Plan and PSPI&U Plan. The precise locations of the foregoing two ET Utility Delivery Points and Utility Tie-ins will be definitively shown in the Final Master Plan.
|
|
c)
|
Timing for supply of ET:
|
Supply of ET shall be available commensurate with the start of construction, and shall be provided progressively at the rates requested from time to time by the Project Company to suit the rate of Development as determined from time to time by the Project Company. Table 17.3 below sets out the indicative timing required for the supply of the indicated megawatt hours per Day of electrical power, which timing may be varied by the Project Company from time to time by reasonable notice to the relevant Private Sector Utility Company.
|
Megawatt-hours per day
|
Months
|
|||||
107 | 5 | |||||
322 | 15 | |||||
429 | 36 | |||||
510 | 44 | |||||
537 | 50 |
|
The Parties agree:
|
1.
|
The relevant PSUC will procure the construction of the:
|
|
a)
|
power supply, and
|
|
b)
|
discharge of storm water and waste water services,
|
|
c)
|
all Utility Tie-ins, and
|
|
d)
|
all associated infrastructure either outside the Project Area or within the Perimeter Landscaped Area (as defined in Part C of Schedule 4), and associated with any of the foregoing,
|
2.
|
The Parties shall each grant to the other and to the relevant PSUC all access and other rights as may be reasonably required for the purposes of the relevant PSUC’s construction, installation or delivery of the PSPIU and for the purpose of its connection of the utilities to each appropriate Utility Tie-in.
|
3.
|
Except for the potable water utility which will be supplied by the Government, the relevant PSUC will procure the delivery of each utility to the relevant Utility Delivery Point as set forth in this Schedule 17A and Schedule 17B.
|
4.
|
The relevant PSUC will comply with the requirements of Part C of Schedule 4 with respect to the removal of (a) transmission lines to an Underground Location, and (b) Utility Poles (as those terms are defined in Part C of Schedule 4.
|
5.
|
The relevant PSUC will:
|
|
(i)
|
procure and provide each Utility Tie-in as set forth in this Schedule 17A and Schedule 17B that is required to connect to each of the utility services supplied at each relevant Utility Delivery Point, and
|
|
(ii)
|
design, build, install, test, maintain and connect each such Utility Tie-in and the infrastructure necessary to connect each such utility to the PC Distribution Network.
|
6.
|
The relevant PSUC shall, for the purposes of complying with its obligations with respect to the provision of the PSPIU, be granted free access to and use of the PC Distribution Network and will procure that all quantities of any utility consumed or utilized within the Project Area shall be delivered, collected or removed, as the case may be, by underground route and sold and billed directly by such PSUC to the end user thereof within the Project Area (an “End User”).
|
7.
|
The Project Company shall liaise closely with the relevant PSUC with regard to such PSUC’s design, schedule of work, completion and connection of each Utility Tie-in at each Utility Delivery Point to ensure that such construction and connection takes place in accordance with the relative specification set out in the PSPI&U Plan and Final Master Plan.
|
8.
|
The relevant PSUC supplying any utility to the Project Area shall procure that the quantities of such utility delivered to End Users shall be determined on a monthly basis by a reading of the relevant End User’s meter.
|
9.
|
The relevant PSUC undertakes to Substantially Complete or procure the Substantial Completion of the construction of all pipes, cables and trenches and other related structures up to and including each Utility Delivery Point and to the Inner Boundary so that each Utility Tie-in has been tested and commissioned and has the full capacity of the relative utility available for immediate use by End Users not later than the dates specified above therefore in, as the case may be, Table 17.1, Table 17.2, or Table 17.3 in Schedule 17A.
|
10.
|
It is understood and agreed by the Parties that:
|
|
a)
|
the Project Company shall not own the Private Sector Public Infrastructure and Utilities and that all Private Sector Public Infrastructure and Utilities shall remain the property of the relevant Private Sector Utility Company; and
|
|
b)
|
the Project Company shall never have any liability to any person resulting from or connected with the existence, use, maintenance or operation of the Private Sector Public Infrastructure and Utilities; and
|
|
c)
|
except as otherwise stated herein, the relevant PSUC, at its cost and expense, will procure all property rights, easements or rights-of-way necessary to build, install and deliver the Private Sector Public Infrastructure and Utilities and any infrastructure associated therewith over, under and/or through the Perimeter Landscaped Area (as that term is defined in Schedule 4) to the Inner Boundary; and
|
|
d)
|
the relevant PSUC shall:
|
|
(i)
|
connect the Private Sector Public Infrastructure and Utilities at the appropriate Utility Delivery Point to the appropriate Utility Tie-in, and
|
|
(ii)
|
deliver the utilities via the PC Distribution Network to the End Users; and
|
|
e)
|
all references to the location of any Utility Delivery Point or Utility Tie-in in this Schedule 17A or Schedule 17B or in the drawings contained herein or in this Development Agreement are, notwithstanding anything to the contrary contained elsewhere in this Development Agreement, references to such locations at points on the Inner Boundary. If for the convenience of the Parties or otherwise, any such Utility Delivery Point or Utility Tie-in is actually located or constructed at a location other than a point on the Inner Boundary, then the relevant PSUC shall continue to be responsible for the design, construction and completion, at its cost and expense, of all Private Sector Public Infrastructure and Utilities up to the Inner Boundary.
|
|
f)
|
Notwithstanding Clause 9.2.4, in the event that the development of the Project Area exceeds the assumptions set out in Schedule 17A and as contained in the traffic impact assessment or the Final Master Plan, which extra development creates additional demand unable to be supplied from the Private Sector Public Infrastructure and Utilities constructed as required by Clause 9.2 and this Schedule 17A and 17B, the Private Sector Utility Companies shall, at the request of the Project Company and at the cost of the Project Company, carry out all works as are necessary to expand the Private Sector Public Infrastructure and Utilities in so far as this is necessary to satisfy the additional demand.
|
1.
|
The Project Company Infrastructure and Utilities and any other infrastructure within the Project Area that is not Government Infrastructure or Private Sector Public Infrastructure and Utilities will be procured by the Project Company at its sole cost and expense.
|
2.
|
This Schedule 18 constitutes the preliminary plan for the Project Company Infrastructure and Utilities. The Project Company shall include the final plan for Project Company Infrastructure and Utilities (the “PCI&U Plan”) in the Final Master Plan as Approved by the Government.
|
3.
|
The Parties agree that the PCI&U Plan shall comprise only infrastructure within the Project Area and infrastructure for utilities distribution within the Project Area and shall include the terms and conditions contained in this Schedule 18, including the following:
|
|
a)
|
roads and associated pedestrian walkways, curbs, central reservations, hard and soft landscaping, signage and traffic management systems within the Project Area (collectively “Traffic Elements”);
|
|
b)
|
the underground utility distribution network within and throughout the Project Area sufficient to efficiently service the Project Area’s requirements for the distribution of such utilities supplied by others (the “PC Distribution Network”) for:
|
|
(i)
|
power distribution within the Project Area, and
|
|
(ii)
|
potable water distribution within the Project Area, and
|
|
(iii)
|
treated and untreated sewage distribution within the Project Area, and
|
|
(v)
|
telecommunications, data transmission and data networking distribution within the Project Area, and
|
|
c)
|
such other utilities distribution apparatus or infrastructure in respect of the Project and within the Project Area as the Project Company may from time to time determine to be useful or convenient.
|
4.
|
Notwithstanding the definition contained in Clause 1.2 or the right granted in Clause 5.1.14, the Project Company does not have any obligation to develop, build or operate a landfill site or any plant for sewage treatment, waste water treatment, water clarification, purification, desalination or demineralization, electric power generation, or any plant for the production of any utility.
|
Shareholder
|
Number of Shares
|
% of total
issued Shares
|
Omagine, Inc. | 3,000,000 | 60 % |
Royal Court Affairs | 1,250,000 | 25 % |
Consolidated Contracting Company, S.A. | 500,000 | 10 % |
Consolidated Contractors Co. Oman LLC | 250,000 | 5 % |
TOTAL
|
5,000,000
|
100.0%
|
2)
|
At the request of the Project Company, the Government shall enter into Direct Agreements with Lenders acknowledging their rights by way of Security Interests over certain assets of the Project Company including an assignment to the Lenders of the Development Agreement, the Usufruct Agreement, other related agreements, and the Project Assets which, inter alia, may entitle the Lenders to assume control of such assets, assume certain rights under those agreements, including a Step-In Right under the Development Agreement and/or the right to appoint appropriate personnel, contractors or the Project Company to assume, at all times subject to the relevant agreements, control of such assets.
|
3)
|
By providing reasonable assurance and co-operation or by entering into one or more Direct Agreements pursuant to Clause 22.3 of the Development Agreement and this Schedule 20, the Government shall not be required or be deemed to assume any additional obligations under such Direct Agreements other than the specific obligations the Government assumes pursuant to such Direct Agreement nor to lose any rights which it may have under the Development Agreement.
|
4)
|
Any assignment by the Project Company by way of Security Interests as provided above shall not relieve or in any way discharge it from the performance of its duties and obligations under the Development Agreement.
|
5)
|
Pursuant to Clause 21.1.4, the Government undertakes that if the Lenders exercise their Step-In Rights then for a period of ninety (90) Days after the date of exercising their Step-In Rights (“Suspension Period”) the Lenders shall be entitled to a suspension of the Government Termination Notice.
|
6)
|
The Government undertakes to withdraw its Government Termination Notice and to continue the Development Agreement and the Usufruct Agreement in full force and effect and not to take any action with regard to a Government Termination Notice in relation to any Project Company Event of Default at the end of the Suspension Period relating thereto:
|
(a)
|
if the Government is satisfied, acting reasonably, that such Project Company Event of Default no longer subsists; or
|
(b)
|
if in respect of any Project Company Event of Default the Government is satisfied, acting reasonably, that Project Company Event of Default has been remedied; or
|
(c)
|
if the Project Company Event of Default is not capable of remedy, the Lenders have undertaken to pay compensation for the Project Event of Default;
|
7)
|
The Project Company shall, in accordance with the terms and conditions of the Development Agreement and this Schedule 20, have the right to assign to third party Lenders all rights granted to it pursuant to the Development Agreement and the Usufruct Agreement.
|
|
(a)
|
for the furtherance and promotion of any of the purposes of this Code of Practice;
|
(b)
|
as to what constitutes appropriate use of any part of the Project Area, Community Facilities, Plots, Units or Buildings;
|
(c)
|
as to the resolution of disputes;
|
(d)
|
as to the levy and collection of Allocated Service Charges (as that term is hereinafter defined);
|
(e)
|
for the better management of the Community Facilities and the administration and governance of the Project Area generally.
|
a.
|
b.
|
e.
|
f.
|
h.
|
i.
|
maintenance expenses;
|
j.
|
insurance premiums;
|
k.
|
expenses and costs in respect of services;
|
l.
|
municipality charges and/or other taxes and/or costs;
|
m.
|
administrative and professional expenses;
|
n.
|
management fees and Manager fees; and
|
o.
|
provision for future maintenance and repairs or capital expenditures.
|
|
(i)
|
providing the above items and services in accordance with the requirements of this Code of Practice and the Development Agreement;
|
|
(ii)
|
the supply and/or removal of electricity, gas, water, sewerage and other utilities to and from the Community Facilities;
|
|
(iii)
|
complying with the recommendations and requirements of the insurers of the Project Company (insofar as those recommendations and requirements relate to the Community Facilities);
|
|
(iv)
|
complying with all laws relating to the Community Facilities or their use, or any Works carried out at them, and relating to the use of all service media, machinery and equipment at or serving the Community Facilities and to any materials kept at or disposed of from the Community Facilities;
|
|
(v)
|
complying with any Third Party rights insofar as they relate to the Community Facilities;
|
|
(vi)
|
taking any steps (including legal proceedings) that the Project Company considers necessary or proper to prevent or remove any encroachment over the Community Facilities or to prevent (other than as contemplated by this Development Agreement or the Finance Agreements) the acquisition of any right over the Community Facilities or over all or any part of the Project Area or to remove any obstruction to the flow of light or air to the Community Facilities or to all or any part of the Project Area; and
|
|
(vii)
|
any other costs that arise due to an event of material unforeseen expense (such as, but not limited to, remedy of unsafe conditions or to comply with the Law), and
|
(i)
|
any Manager employed by the Project Company for the carrying out and provision of the above services or, where a Manager is not employed, a management fee for the same; and
|
(ii)
|
(iii)
|
all municipality or Governmental charges, taxes, fees and impositions payable in respect of the Community Facilities, their use or any Works carried out in or upon them.
|
(a)
|
the Charges shall be allocated to the relevant Third Parties according to a fair proportion;
|
(b)
|
any Plot, Unit or Building or portion thereof dedicated to the exclusive use of the Government or any Private Sector Utility Company (each, an “Excluded Party”) and accepted by such Excluded Party may be included in the calculation of overall Charges but such Excluded Party shall be excluded from any obligation to pay any Charges;
|
(c)
|
liability for payment to the Project Company of a pro-rata portion of the above Charges shall vest in each relevant Third Party at the time such pro-rata portion of the above Charges becomes due. The authority and right to collect Charges from Third Parties may be delegated by the Project Company to the Manager;
|
(d)
|
cost overruns or savings from prior years shall be brought forward for debit or credit as the case may be; and
|
(e)
|
in the event of a material unforeseen expense (such as to remedy unsafe conditions or to comply with the Law) the Project Company may, pursuant to paragraph 2.2.5, amend the budget during the course of a fiscal year and, in such an event, shall provide appropriate written notice thereof and the reasons therefore to the relevant Third Parties.
|
(a)
|
a Third Party fails to pay its Allocated Service Charge in full to the Project Company on the due date (a “Default”); or
|
(b)
|
this Code of Practice is incorporated into the relevant Sales Agreement, lease agreement or other agreement with the Project Company, and a Third Party is in breach of the terms of this Code of Practice (a “Breach”) and, the Project Company has given such Third Party sixty (60) Days notice in writing (a “Default Notice”) calling upon such Third Party to remedy such Default or Breach and such Third Party fails to cure such Breach or Default within sixty (60) Days after the date of delivery to it of such Default Notice (either by hand delivery to the address of the relevant Third Party or by deposit in the mail addressed to such Third Party),
|
|
(i)
|
purchase the relevant Plot, Building or Unit and any structures thereon from such Third Party at the lesser of (x) the Open Market Value of such Plot, Building or Unit (as determined by an independent expert appointed by the Project Company), or (y) the purchase price (as defined in the relevant Sales Agreement, minus any fees and expenses incurred by the Project Company in exercising its Option, or
|
|
(ii)
|
immediately cancel and terminate any lease agreement, usufruct or sub-usufruct agreement or other agreement between the Project Company and such Third Party in accordance with its terms
.
|
1.
|
Submit the preliminary masterplan of project as per specification mentioned in the Development Control Plan Framework for Tourism Development Projects of Ministry of the year 2010 (DCPF).
|
2.
|
Plan of work of the Project.
|
3.
|
Study of social effects of the project on the local community and put suitable solutions concern benefit of local community.
|
4.
|
Preliminary environmental approval for the project from Ministry of Environment as per the (DCPF).
|
5.
|
Agree to build on the basis of the contractual minimum requirements for tourist facilities.
|
6.
|
Stage of project and schedule time for executing.
|
7.
|
Plan of financing the project.
|
8.
|
The company commitment to fulfill its obligation and build on the basis of the contractual minimum requirements for tourism facilities.
|
1.
|
the final masterplan, and
|
2.
|
the final Ministry of Environment approval for the project.
|
1.
|
As of the Execution Date there is no law in existence in Oman with respect to the requirement for any person to establish an Escrow Account.
|
2.
|
If, subsequent to the Execution Date, a Law is enacted requiring the Project Company to establish an Escrow Account for the protection of Third Parties in connection with the purchase of Units, the Project Company shall then and only then be obligated to comply with the obligations contained in Clause 6.10 and shall also comply with the regulations issued by the Government with regard to such Escrow Account and its relevant Escrow Agreement (“Regulations”). In such an event the payments made to the Project Company by Third Parties pursuant to Sales Agreements for the purchase of Units may be required to be deposited in such Escrow Account and released to the Project Company in accordance with the Escrow Agreement.
|
3.
|
Notwithstanding paragraph 2 of this Schedule 23 and Clause 6.10, the Parties hereby agree that the Project Company shall at all times for the purposes of financing the Works, Buildings and the Development of the Project be entitled to the release of and payment to it, and the use of, any funds held in any such Escrow Account.
|
1.
|
The Landmark Company
|
2.
|
Landmark Assets
|
2.1
|
Subsequent to the LC Formation Date and subject to paragraph 2.2 below and upon the prior written consent of the Government, the Project Company shall transfer to the Landmark Company the following assets (the Landmark Assets”) which are identified in the Initial Master Plan and shown in Drawing 24A attached herewith, and which consist of:
|
|
2.1.1
|
the MBO,
|
2.1.2
|
the entire Boardwalk identified as item number 10 in Drawing 24A,
|
2.1.3
|
the exhibition areas between and among the Pearls,
|
2.2
|
No Freehold Title to Landmark Assets shall be transferred to the Landmark Company. The rights transferred to the Landmark Company over the Landmark Assets shall be transferred by way of usufruct only and upon the prior written consent of the Government.
|
3.
|
Obligations of the Landmark Company:
|
3.1
|
At a date no later than two years from the Effective Date, the Landmark Company or the Project Company shall provide the Government for its consent the following in writing:
|
3.1.1
|
A Master Plan which will be delivered and Approved pursuant to the DCPF and Clause 11 and Schedule 4 of this Development Agreement, for the development of the Landmark Assets including the designs thereof, prepared to a level of detail for each of the Landmark Assets satisfactory to the Government.
|
3.1.2
|
A time schedule, which time schedule will be incorporated within the Time Schedule for the entire Project provided in Schedule 7 and which shall be delivered and Approved pursuant to the provisions of the DCPF and this Development Agreement, for the development of each of the Landmark Assets provided that such development shall progress concurrently with the development of the MBO.
|
3.1.3
|
Preliminary details of the facilities that each of the Pearls will include and the final details of which shall be provided on a date no later than three years from the Effective Date.
|
3.1.4
|
Its representations on how the Landmark Assets will be operated, and
|
3.1.5
|
The name(s) and corporate details of any proposed specialist tourism or recreational operator for any of the Landmark Assets, and
|
3.1.6
|
The Landmark Company’s estimated budget showing the projected sources of its income and its projected expenses, and
|
3.1.7
|
The service charges and fees that the users of the Landmark Assets will be charged, and
|
3.1.8
|
A confirmation of the Landmark Company’s continuing financial capacity.
|
3.2
|
The Landmark Company shall:
|
3.2.1
|
Maintain its Books and Records in accordance with the International Financial Reporting Standards (“IFRS”), and
|
3.2.2
|
Have its financial statements audited annually by an independent public accounting firm licensed to practice in Oman (“Auditors”), and
|
3.2.3
|
Until a date subsequent to the attainment by the Landmark Company of net positive cash flow as determined in accordance with the IFRS for a twelve month calendar period commencing on January 1:
|
a)
|
Not pay any dividends to its shareholders, provided that such dividends are payable after deducting the expenses, and
|
b)
|
Retain ownership of the Landmark Assets and all other assets recorded in its Books and Records, provided that disposing the ownership of the Landmark Assets shall also be conditional upon the prior written consent of the Government which shall not be unreasonably withheld.
|
4.
|
The Project Company hereby undertakes that in case the income generated and derived from the operation of the Landmark Assets was not sufficient then the Project Company shall cover such ongoing operation expenses in a manner that assures the continuous vibrancy of the Project.
|
5.
|
For the avoidance of doubt, the Parties hereby agree that (i) each serviced chalet associated with a hotel, and (ii) each serviced apartment, and (iii) each hotel room, in the Project Area is hereby defined as a “hotel unit” as such term is used in Ministerial Decision No. 98/2009.
|
6.
|
Notwithstanding anything contained in Schedule 24, the Project Company shall continue to be liable in respect of all its obligations and responsibilities under the various provisions of the Development Agreement (including Schedules).
|
i.
|
the office of Royal Court Affairs (“RCA”), which owns 25%, and
|
ii.
|
two subsidiaries of Consolidated Contractors International Company, SAL (“CCIC”), which collectively own 15%.
|
i.
|
initially capitalizing Omagine LLC at 150,000 Omani Rials [$390,000], and
|
ii.
|
increasing Omagine LLC’s capital to 26,988,125 Omani Rials [$70,169,125] within a 6 to 12 month period following the signing of the Development Agreement, and
|
iii.
|
a payment-in-kind investment of the land constituting the Omagine Site (the “PIK”).
|