32.2 Transactions with related parties 32.2.1 Buyback of Polarcus Alima Zickerman Holding Limited and Zickerman Group Limited (together “ZL”) hold 14.71% of the paid-in share capital of the Company as of 31 December 2010 and are companies controlled by Board members Carl-Gustav Zickerman and Carl Peter Zickerman. In October 2010, the Company exercised the option of repurchasing POLARCUS ALIMA from ZL. The Company paid USD 1.5 million to ZL towards the purchase price of shares in Polarcus 6, owning the rights to vessel POLARCUS ALIMA. Also refer to Note 1.1 Financing and Note 8 Vessel Buyback Options.
32.2.2 Other transactions with related parties Drydocks World Dubai (“DWD”) holds 9.15% of the paid-in share capital of the Company as of 31 December 2010. Below is a summary of major transactions between DWD and the Group during the year ended 31 December 2010; (In thousands of USD)
31-Dec-10
31-Dec-09
Payments made under ship building contracts
40,775
95,777
Payments made under the deferred payment arrangement
33,732
-
2,235
-
Total payments made during the year
76,742
95,777
Payments included in Accounts payable (due within 12 months)
13,737
13,802
Payable under the deferred payment arrangement (due within 12 months)*
59,874
29,138
Total payable
73,612
42,940
-
21,730
8,274
-
Payments received against the above during the year ended 31 December 2009
-
(13,456)
Payments received against the above during the year ended 31 December 2010
(8,274)
-
-
8,274
Financing costs paid
Equipment sold at cost by the Company during the restructuring (refer to Note 1.1) Balance receivable for equipment sold
Balance receivable
*Interest at the rate of 7% is payable on the balance payable under deferred payment arrangement. Also refer to Note 25 Deferred payments to vendors.
32.2.3 Key management compensation The salaries and other benefits paid and accrued as payable to key management personnel for the periods reported are shown in the table below; (In thousands of USD) Year ended 31-Dec-10 Salary Rolf Ronningen
Chief Executive Officer
400
Other Allowances 340
Pension 32
Share based payments
Total salary and allowances
167
939
Tom Henrik Sundby
Chief Financial Officer
300
249
24
101
674
Carl Peter Zickerman
EVP & Head of Strategic Investment
396
346
32
113
886
Other members of executive management
1,806
1,740
145
755
4,446
Total
2,902
2,674
232
1,136
6,945
79