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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/20/24 Global Ship Lease, Inc. 20-F 12/31/23 107:15M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size
1: 20-F Annual or Annual-Transition Report by a Foreign HTML 3.14M
Non-Canadian Issuer
2: EX-1.3 Underwriting Agreement or Conflict Minerals Report HTML 78K
-- exhibit13
3: EX-2.3 Plan of Acquisition, Reorganization, Arrangement, HTML 134K
Liquidation or Succession -- exhibit23
4: EX-4.23 Instrument Defining the Rights of Security Holders HTML 351K
-- exhibit423
5: EX-4.31 Instrument Defining the Rights of Security Holders HTML 1.80M
-- exhibit431
6: EX-8.1 Opinion of Counsel re: Tax Matters -- exhibit81 HTML 120K
10: EX-13.1 Annual or Quarterly Report to Security Holders -- HTML 30K
exhibit131
11: EX-13.2 Annual or Quarterly Report to Security Holders -- HTML 31K
exhibit132
15: EX-97.1 Clawback Policy re: Recovery of Erroneously HTML 60K
Awarded Compensation -- exhibit971
7: EX-11.1 Statement re: the Computation of Earnings Per HTML 97K
Share -- exhibit111
8: EX-12.1 Statement re: the Computation of Ratios -- HTML 35K
exhibit121
9: EX-12.2 Statement re: the Computation of Ratios -- HTML 35K
exhibit122
12: EX-15.1 Letter re: Unaudited Interim Financial Info -- HTML 28K
exhibit151
13: EX-15.2 Letter re: Unaudited Interim Financial Info -- HTML 30K
exhibit152
14: EX-15.3 Letter re: Unaudited Interim Financial Info -- HTML 28K
exhibit153
21: R1 Cover HTML 102K
22: R2 Consolidated Balance Sheets HTML 174K
23: R3 Consolidated Balance Sheets (Parenthetical) HTML 50K
24: R4 Consolidated Statements of Income HTML 123K
25: R5 Consolidated Statements of Income (Parenthetical) HTML 42K
26: R6 Consolidated Statements of Comprehensive Income HTML 48K
27: R7 Consolidated Statements of Cash Flows HTML 171K
28: R8 Consolidated Statements of Changes in HTML 36K
Shareholder's Equity (Parenthetical)
29: R9 Consolidated Statements of Changes in HTML 103K
Shareholder's Equity
30: R10 Description of Business HTML 119K
31: R11 Summary of Significant Accounting Policies HTML 134K
32: R12 Restricted Cash HTML 47K
33: R13 Vessels in Operation HTML 124K
34: R14 Deferred charges, net HTML 40K
35: R15 Intangible Liabilities - Charter Agreements HTML 45K
36: R16 Prepaid Expenses and Other Current Assets HTML 40K
37: R17 Inventories HTML 39K
38: R18 Derivative Asset HTML 57K
39: R19 Accounts Payable HTML 40K
40: R20 Accrued Liabilities HTML 37K
41: R21 Long-Term Debt (Narrative I) HTML 97K
42: R22 Long-Term Debt (Narrative II) HTML 80K
43: R23 Long-Term Debt (Narrative III) HTML 81K
44: R24 Long-Term Debt (Narrative IV) HTML 96K
45: R25 Time charter revenue HTML 43K
46: R26 Related Party Transactions HTML 49K
47: R27 Commitments and Contingencies HTML 39K
48: R28 Share Capital HTML 68K
49: R29 Share-Based Compensation HTML 93K
50: R30 Earnings per Share HTML 69K
51: R31 Subsequent events HTML 35K
52: R32 Summary of Significant Accounting Policies HTML 200K
(Policies)
53: R33 Description of Business (Tables) HTML 108K
54: R34 Restricted Cash (Tables) HTML 45K
55: R35 Vessels in Operation (Tables) HTML 105K
56: R36 Deferred charges, net (Tables) HTML 38K
57: R37 Intangible Liabilities - Charter Agreements HTML 32K
(Tables)
58: R38 Prepaid Expenses and Other Current Assets (Tables) HTML 39K
59: R39 Inventories (Tables) HTML 39K
60: R40 Derivative Asset (Tables) HTML 42K
61: R41 Accounts Payable (Tables) HTML 39K
62: R42 Accrued Liabilities (Tables) HTML 36K
63: R43 Long-Term Debt (Narrative I) (Tables) HTML 67K
64: R44 Long-Term Debt (Narrative IV) (Tables) HTML 45K
65: R45 Time charter revenue (Tables) HTML 40K
66: R46 Commitments and Contingencies (Tables) HTML 37K
67: R47 Share-Based Compensation (Tables) HTML 51K
68: R48 Earnings per Share (Tables) HTML 65K
69: R49 Description of Business - Schedule of Vessels HTML 223K
(Table) (Details)
70: R50 Description of Business (Details Narrative) HTML 57K
71: R51 Summary of Significant Accounting Policies HTML 133K
(Details Narrative)
72: R52 Restricted cash (Table) (Details) HTML 52K
73: R53 Vessels in Operation - Schedule of Vessels in HTML 61K
Operation (Table) (Details)
74: R54 Vessels in Operation - Vessels Acquisitions HTML 111K
(Table) (Details)
75: R55 Vessels in Operation (Details Narrative) HTML 84K
76: R56 Deferred charges, net (Table) (Details) HTML 36K
77: R57 Deferred charges, net (Details Narrative) HTML 29K
78: R58 Intangible Liabilities/ Assets - Charter HTML 32K
Agreements - Aggregate Amortization of Intangible
Liabilities (Table) (Details)
79: R59 Intangible Liabilities - Charter Agreements HTML 39K
(Details Narrative)
80: R60 Prepaid Expenses and Other Current Assets (Table) HTML 40K
(Details)
81: R61 Inventories (Table) (Details) HTML 37K
82: R62 Derivative Asset - Schedule of Derivative Assets HTML 49K
(Table) (Details)
83: R63 Derivative Asset (Details Narrative) HTML 54K
84: R64 Accounts Payable (Table) (Details) HTML 38K
85: R65 Accrued Liabilities (Table) (Details) HTML 34K
86: R66 Long-Term Debt - Schedule of Long - Term Debt HTML 87K
(Table) (Details)
87: R67 Long-Term Debt (Narrative I) (Details Narrative) HTML 108K
88: R68 Long-Term Debt (Narrative II) (Details Narrative) HTML 164K
89: R69 Long-Term Debt (Narrative III) (Details Narrative) HTML 214K
90: R70 Long-Term Debt - Repayment Schedule (Table) HTML 43K
(Details)
91: R71 Long-Term Debt - Schedule of Deferred Financing HTML 35K
Costs (Table) (Details)
92: R72 Long-Term Debt (Narrative IV) (Details Narrative) HTML 211K
93: R73 Time charter revenue - Operating revenue (Table) HTML 37K
(Details)
94: R74 Related Party Transactions (Details Narrative) HTML 56K
95: R75 Commitments and Contingencies - Charter Hire HTML 41K
Receivable (Table) (Details)
96: R76 Commitments and Contingencies (Details Narrative) HTML 29K
97: R77 Share Capital (Details Narrative) HTML 131K
98: R78 Share-Based Compensation (Table) (Details) HTML 52K
99: R79 Share-Based Compensation (Details Narrative) HTML 124K
100: R80 Earnings/(Loss) per Share (Table) (Details) HTML 56K
101: R81 Earnings per Share (Details Narrative) HTML 40K
102: R82 Subsequent events (Details Narrative) HTML 47K
104: XML IDEA XML File -- Filing Summary XML 181K
107: XML XBRL Instance -- gsl-20231231_htm XML 2.85M
103: EXCEL IDEA Workbook of Financial Report Info XLSX 238K
17: EX-101.CAL XBRL Calculations -- gsl-20231231_cal XML 250K
18: EX-101.DEF XBRL Definitions -- gsl-20231231_def XML 1.00M
19: EX-101.LAB XBRL Labels -- gsl-20231231_lab XML 1.65M
20: EX-101.PRE XBRL Presentations -- gsl-20231231_pre XML 1.27M
16: EX-101.SCH XBRL Schema -- gsl-20231231 XSD 343K
105: JSON XBRL Instance as JSON Data -- MetaLinks 579± 821K
106: ZIP XBRL Zipped Folder -- 0001140361-24-014377-xbrl Zip 1.01M
Exhibit 11.1
Global Ship Lease Inc.
Policies and Procedures to Detect and Prevent Insider Trading
Revised: March 2020
INTRODUCTION
The purchase or sale of securities while aware of material nonpublic information, or the disclosure of material nonpublic information to others who then trade in Global Ship Lease’s securities, is prohibited by the U.S. federal securities laws. Insider trading violations are pursued vigorously by the SEC and the U.S. Department of Justice and are punished severely. While the regulatory authorities concentrate their efforts on the individuals who trade, or who tip inside information to others who trade, the U.S. federal securities laws also impose potential liability on companies and other “controlling persons” if they fail to take reasonable steps to prevent insider trading by company personnel.
The Board of Directors (the “Board”) of Global Ship Lease, Inc. (“Global Ship Lease”) has adopted this policy (this “Trading Policy”) both to satisfy Global Ship Lease’s obligation to prevent insider trading and to help Global Ship Lease personnel avoid the severe consequences associated with violations of the insider trading laws. This Trading Policy also is intended to prevent even the appearance of improper conduct on the part of anyone employed by or associated with Global Ship Lease (not just so-called insiders).
No Global Ship Lease employee, officer or director, whether or not a citizen or resident of the United States, (the “Covered Persons”) may, directly or indirectly, purchase or sell any security while in possession of material nonpublic information (known as “inside information”) regarding such security, whether or not such information was obtained in the course of employment. The term “Covered Persons” also includes certain other persons who are, from time to time, designated by the Company as Covered Persons and provided notice as to their status. This prohibition extends to communicating such inside information to others with respect to trading in securities based on such information (known as “tipping”), and covers securities of Global Ship Lease and of other issuers.
For purposes of this Trading Policy, “material” information means information relating to an issuer of securities, its business operations or its securities, the public dissemination of which would be likely to affect the market price of any of its securities, or which would likely be considered important by a reasonable investor in determining whether to buy, sell or hold such securities. The source of the material information is irrelevant.
“Nonpublic information” means information that has not been widely disseminated to the public (e.g., through the television, radio or print media of wide circulation, the Dow Jones broad tape or through widely circulated disclosure documents filed with the Securities and Exchange Commission (the “SEC”)). Information that is available only to a select group of analysts, brokers or institutional investors and undisclosed facts or rumors, even if widely circulated, constitute “nonpublic” information.
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This Trading Policy extends to all members of the household of the Covered Persons irrespective of whether such individuals are citizens or residents of the United States.
As a condition of employment with, or in connection with appointment to the Board of, Global Ship Lease, every Covered Person is required to read, understand and agree to be bound by this Trading Policy throughout the term of their employment with, or in connection with appointment to the Board of, Global Ship Lease. Every employee will also be required to sign the Acknowledgement of Compliance attached hereto as a condition of employment. Global Ship Lease will require annual certifications from all employees that they have re-read, understand and have complied with this Trading Policy.
This Trading Policy applies to you and all members of your household irrespective of whether you and/or such individuals are citizens or residents of the United States.
Failure to comply with this Trading Policy can have serious consequences for the individuals who fail to comply and for Global Ship Lease.
Post-Termination Transactions. This Trading Policy continues to apply to your transactions in any securities even after termination of employment. If you are in possession of material nonpublic information when your employment terminates, you may not trade in those securities until that information has become public or is no longer material.
Company Assistance. Any person who has a question about this Trading Policy or its application to any proposed transaction may obtain additional guidance from the Chief Financial Officer of Global Ship Lease (or if such questions involve the Chief Financial Officer, to the Chief Executive Officer). Ultimately, however, the responsibility for adhering to this Trading Policy and avoiding unlawful transactions rests with the individual Covered Persons.
You May Not Trade on Material Nonpublic Information
· If you are aware of any material information relating to Global Ship Lease or any company, whether or not it is a public company, that has not been made available to the public through such media as Dow Jones, The Wall Street Journal, the Associated Press or other similar news services, or through widely circulated disclosure documents filed with the SEC, for at least two business days, you must not trade directly or indirectly in the debt or equity securities (or options, warrants or similar instruments related to such securities) of any such company, and you must not disclose such information to another person who may trade in such securities.
· Trading by your spouse, minor child or other family members living in your household while you are in possession of material nonpublic information is likewise prohibited and can give rise to legal and company-imposed sanctions.
· Suspicious trading by a friend or family member not living in your household while you are in possession of material nonpublic information can give rise to an
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inquiry into whether you illegally “tipped” that person and, if so, legal and company sanctions could be imposed.
You May Not Disclose Material Nonpublic Information to Anyone Except Other Global Ship Lease Employees
· Covered Persons should not discuss material nonpublic information with anyone outside Global Ship Lease. Inquiries from third parties, such as industry analysts or members of the media, about Global Ship Lease should be directed to Global Ship Lease’s Executive Chairman, Chief Executive Officer, or Chief Financial Officer.
· You must take precautions to safeguard material nonpublic information. Accordingly, you should conduct business and other activities so as not to risk inadvertent disclosure of material information. Material nonpublic information should not be discussed with other Covered Persons not working on such matters or with friends or relatives.
· You should assume that information is material if a reasonable investor would consider the information to be important in deciding whether to buy, sell, or hold securities of the relevant company or if disclosure of such information would be likely to result in a change in the price of the traded securities.
· You should consider all information, from whatever source, to be nonpublic until it has been made available to investors through such media as Dow Jones, The Wall Street Journal, the Associated Press or other similar news services, or through widely circulated disclosure documents filed with the SEC, for at least two business days.
You May Not Trade in the Securities of Global Ship Lease (i) Near Earnings Announcements and other Material Non-Public Events and (ii) Without First Pre-Clearing that Trade in accordance with this Trading Policy
· You and your family members may not trade in any securities of Global Ship Lease (i) during the period commencing at the close of the New York Stock Exchange trading market on the fourteenth (14th) calendar day after the last day of each fiscal quarter of Global Ship Lease and ending at the open of the New York Stock Exchange trading market on the trading day immediately following the completion of one (1) full trading session after the public release of Global Ship Lease’s financial results for such quarter and (ii) during other material non-public events concerning Global Ship Lease.
· In addition, you must pre-clear through Global Ship Lease any purchase or sale of securities of Global Ship Lease in accordance with this Trading Policy.
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When in Doubt, You Should Consult Global Ship Lease’s Chief Financial Officer
· Whenever any Global Ship Lease personnel are confronted with a situation where they have any questions as to what the result should be under these policies and procedures, they should consult immediately with Global Ship Lease’s Chief Financial Officer (or if such questions involve the Chief Financial Officer, with the Chief Executive Officer).
POLICIES AND PROCEDURES TO PREVENT INSIDER TRADING
The following policies and procedures have been established to aid in the prevention of insider trading. Section I provides an overview; Section II sets forth Global Ship Lease’s policies prohibiting insider trading; Section III explains insider trading; Section IV consists of additional prohibited transactions; Section V consists of certain procedures that have been put in place by Global Ship Lease to prevent insider trading; and Section VI consists of an explanation of permitted transactions in Global Ship Lease securities that are not subject to this Trading Policy.
| I. | OVERVIEW |
Preventing insider trading is necessary to comply with the U.S. federal securities laws and to preserve the reputation and integrity of Global Ship Lease. “Insider trading” occurs when any person purchases or sells a security while in possession of inside information relating to the security. As explained in Section III below, “inside information” is information that is considered to be both “material” and “nonpublic.” Insider trading is a crime and the penalties for violating the law include imprisonment, disgorgement of profits, civil fines of up to three times the profit gained or loss avoided, and criminal fines of up to $5,000,000 for individuals and $25,000,000 for entities. Insider trading is also prohibited by this Trading Policy and could result in serious sanctions by Global Ship Lease, including dismissal. Supervisors may also be held liable for the conduct of their subordinates.
This Trading Policy applies to all Covered Persons, whether or not a citizen or resident of the United States, and extends to all activities within and outside an individual’s duties at, or with respect to, Global Ship Lease. Every Covered Person must review this Trading Policy. Questions regarding the Trading Policy should be directed to Global Ship Lease’s Chief Financial Officer (or if such questions involve the Chief Financial Officer, to the Chief Executive Officer).
The personal trading activity of the Chief Financial Officer will be reviewed and pre-cleared by any two of the Executive Chairman, Chief Executive Officer or the Audit Committee Chair.
| II. | STATEMENT OF POLICIES PROHIBITING INSIDER TRADING |
General. It is the policy of Global Ship Lease that no Covered Person who is aware of material nonpublic information relating to Global Ship Lease or to any other company, whether or not it is a public company, may, directly or through
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family members or other persons or entities, (a) buy or sell securities of Global Ship Lease or of any other company, whether or not it is a public company, (other than pursuant to a pre-approved trading plan that complies with SEC Rule 10b5-1, as described below in Section V), or engage in any other action to take personal advantage of that information, or (b) pass that information on to others outside Global Ship Lease, including family and friends. In addition, it is the policy of Global Ship Lease that no Covered Person who, in the course of working for Global Ship Lease, learns of material nonpublic information about a company with which Global Ship Lease does business, including a customer or supplier of Global Ship Lease, may trade in that company’s securities until the information becomes public or is no longer material.
Transactions that may be necessary or justifiable for independent reasons (such as the need to raise money for an emergency expenditure) are not excepted from this Trading Policy. The U.S. federal securities laws do not recognize such mitigating circumstances, and, in any event, even the appearance of an improper transaction must be avoided to preserve Global Ship Lease’s reputation for adhering to the highest standards of conduct.
Transactions by Family Members. This Trading Policy also applies to your family members who reside with you, anyone else who lives in your household, and any family members who do not live in your household but whose transactions in a company’s securities are directed by you or are subject to your influence or control (such as parents or children who consult with you before they trade in a company’s securities). You are responsible for the transactions of these other persons (whether or not citizens or residents of the United States) and therefore should make them aware of the need to confer with you before they trade in a company’s securities.
Disclosure of Information to Others. Global Ship Lease is required under Regulation FD of the U.S. federal securities laws to avoid the selective disclosure of material nonpublic information. Global Ship Lease has established procedures for releasing material information in a manner that is designed to achieve broad public dissemination of the information immediately upon its release. You may not, therefore, disclose information to anyone outside Global Ship Lease, including family members and friends, other than in accordance with those procedures. You also may not discuss Global Ship Lease or its business in an internet “chat room” or similar internet-based forum.
| III. | EXPLANATION OF INSIDER TRADING |
As noted above, “insider trading” refers to the purchase or sale of a security while in possession of “material” “nonpublic” information relating to the security. “Securities” include not only shares, bonds, notes and debentures, but also options, warrants and similar instruments. “Purchase” and “sale” are defined broadly under the U.S. federal securities law. “Purchase” includes not only the actual purchase of a security, but any contract to purchase or otherwise acquire a
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security. “Sale” includes not only the actual sale of a security, but any contract to sell or otherwise dispose of a security.
These definitions extend to a broad range of transactions including conventional cash-for-stock transactions, conversions, the grant and exercise of stock options and acquisitions and exercises of warrants or puts, calls, swaps or other options related to a security. It is generally understood that insider trading includes the following:
· trading by insiders while in possession of material nonpublic information;
· trading by persons other than insiders while in possession of material nonpublic information where the information either was given in breach of an insider’s fiduciary duty to keep it confidential or was misappropriated; or
· communicating or tipping material nonpublic information to anyone, including recommending the purchase or sale of a security while in possession of such information.
What Facts are Material? The materiality of a fact depends upon the circumstances. A fact is considered “material” if there is a substantial likelihood that a reasonable investor would consider it important in making a decision to buy, sell or hold a security or where the fact is likely to have a significant effect on the market price of the security. Material information can be positive or negative and can relate to virtually any aspect of a company’s business or to any type of security, debt or equity.
Examples of material information include (but are not limited to):
| · | Projections of future earnings or losses, or other earnings guidance; |
· Earnings that are inconsistent with the consensus expectations of the investment community;
| · | Pending or proposed merger, acquisition or tender offer; |
· Pending or proposed acquisition or disposition of a significant asset;
· Change in dividend policy, the declaration of a stock split, or an offering of additional securities;
| · | Change in management; |
| · | Development of a significant new product or process; |
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| · | Impending bankruptcy or the existence of severe liquidity problems; |
| · | Gain or loss of a significant customer or supplier. |
Moreover, material information does not have to be related to a company’s business. For example, the contents of a forthcoming newspaper column that is expected to affect the market price of a security can be material.
What is Nonpublic Information? Information is “nonpublic” if it is not available to the general public. In order for information to be considered public, it must be widely disseminated in a manner making it generally available to investors through such media as Dow Jones, Reuters Economic Services, The Wall Street Journal, Associated Press or United Press International, or through widely circulated disclosure documents filed with the SEC. The circulation of rumors, even if accurate and reported in the media, does not constitute effective public dissemination.
When Information is “Public.” If you are aware of material nonpublic information, you may not trade until the information has been disclosed broadly to the marketplace (such as by press release through such media as Dow Jones, Reuters Economic Services, The Wall Street Journal, Associated Press, or United Press International), or through widely circulated disclosure documents filed with the SEC, and the investing public has had time to absorb the information fully. To avoid the appearance of impropriety, as a general rule, information should not be considered fully absorbed by the marketplace until after the second business day after the information is released. If, for example, a company were to make an announcement on a Monday, you should not trade in that company’s securities until Thursday. If an announcement were made on a Friday, Wednesday generally would be the first eligible trading day.
Who is an Insider? “Insiders” include officers, directors and employees of a company and anyone else who has material inside information about a company. An affiliate of a company can also be an insider. Insiders have independent fiduciary duties to their company and its shareholders not to trade on material nonpublic information relating to a company’s securities. All Covered Persons should consider themselves insiders with respect to material nonpublic information about the business activities and securities of Global Ship Lease.
Covered Persons may not trade securities while in possession of material nonpublic information relating to Global Ship Lease’s securities or tip (or communicate except on a need-to-know basis and subject to an obligation of confidentiality) such information to others. Trading by your spouse, minor child or by other family members living in your household while you are in possession of material nonpublic information is likewise prohibited and can give rise to legal and company-imposed sanctions.
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Trading by Persons Other than Insiders. Insiders may be liable for communicating or tipping material nonpublic information to a third party (“tippee”), and insider trading violations are not limited to trading or tipping by insiders. Persons other than insiders also can be liable for insider trading, including tippees who trade on material nonpublic information tipped to them or individuals who trade on material nonpublic information that has been misappropriated.
Tippees inherit an insider’s duties and are liable for trading on material nonpublic information illegally tipped to them by an insider. Similarly, just as insiders are liable for the insider trading of their tippees, so are tippees who pass the information along to others who trade. In other words, a tippee’s liability for insider trading is no different from that of an insider. Tippees can obtain material nonpublic information by receiving overt tips from others or through, among other things, conversations at social, business or other gatherings.
Penalties for Engaging in Insider Trading. Penalties for trading on or tipping material nonpublic information can extend significantly beyond any profits made or losses avoided, both for individuals engaging in such unlawful conduct and their employers. The SEC and the U.S. Department of Justice have made the civil and criminal prosecution of insider trading violations a top priority. Enforcement remedies available to the government or private plaintiffs under the U.S. federal securities laws include:
| · | SEC administrative sanctions; |
| · | Securities industry self-regulatory organization sanctions; |
| · | Civil injunctions; |
| · | Damage awards to private plaintiffs; |
| · | Disgorgement of all profits; |
| · | Civil fines for the violator of up to three times the amount of profit gained or loss avoided; |
· Civil fines for the employer or other controlling person of a violator (i.e., where the violator is an employee or other controlled person) of up to the greater of $1,000,000 or three times the amount of profit gained or loss avoided by the violator;
· Criminal fines for individual violators of up to $5,000,000 ($25,000,000 for an entity); and
| · | Jail sentences of up to 20 years. |
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In addition, insider trading violations are not limited to violations of the U.S. federal securities laws: other U.S. federal and state civil or criminal laws, such as the laws prohibiting mail and wire fraud and the Racketeer Influenced and Corrupt Organizations Act, also may be violated upon the occurrence of insider trading.
Company-Imposed Sanctions. A Covered Person’s failure to comply with this Trading Policy may subject the Covered Person to company-imposed sanctions, including dismissal, or removal, as the case may be, for cause, whether or not the Covered Person’s failure to comply results in a violation of law. Needless to say, a violation of law, or even an SEC investigation that does not result in prosecution, can tarnish one’s reputation and irreparably damage one’s career.
Examples of Insider Trading. Examples of insider trading cases include actions brought against: corporate officers, directors, and employees who traded a company’s securities after learning of significant confidential corporate developments; friends, business associates, family members and other tippees of such officers, directors, and employees who traded the securities after receiving such information; government employees who learned of such information in the course of their employment; and other persons who misappropriated, and took advantage of, confidential information from their employers.
The following are illustrations of insider trading violations. These illustrations are hypotheticals and, consequently, not intended to reflect on the actual activities or business of Global Ship Lease or any other entity.
· Trading by Insider. A director of X Corporation learns that earnings to be reported by X Corporation will increase dramatically. Prior to the public announcement of such earnings, the director purchases X Corporation’s stock. The director, an insider, is liable for all profits as well as penalties of up to three times the amount of all profits. The director is also subject to, among other things, criminal prosecution and fines.
· Trading by Tippee. A director of X Corporation tells a friend that X Corporation is about to publicly announce that it has concluded an agreement for a major acquisition. This tip causes the friend to purchase X Corporation’s stock in advance of the announcement. The director is jointly liable with his friend for all of the friend’s profits and each is liable for all penalties of up to three times the amount of the friend’s profits. In addition, the director and his friend are subject to, among other things, criminal prosecution, as described above.
· Misappropriation. An employee of an investment advisor learns of a prospective recommendation of a particular stock by his employer and purchases that stock in advance of the
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recommendation. The employee has used his position to deceive those who entrusted him with confidential information. This undisclosed misappropriation of such confidential information is viewed as fraud akin to embezzlement. The employee is liable for all profits and penalties, and is subject to criminal prosecution.
Prohibition of Records Falsification and False Statements. U.S. federal law also requires public companies to maintain proper internal books and records and to devise and maintain an adequate system of internal accounting controls. The SEC has supplemented the statutory requirements by adopting rules that prohibit
(1) any person from falsifying records or accounts subject to the above requirements and (2) officers or directors from making any materially false, misleading, or incomplete statement to any accountant in connection with any audit or filing with the SEC. These provisions reflect the SEC’s intent to discourage officers, directors and other persons with access to a public company’s books and records from taking action that might result in the communication of materially misleading financial information to the investing public.
After-The-Fact Scrutiny. Anyone scrutinizing your transactions will be doing so after the fact, with the benefit of hindsight. As a practical matter, before engaging in any transaction, you should carefully consider how enforcement authorities and others might view the transaction in hindsight. A helpful general rule to follow is that if you are in doubt about the legality or propriety of the transaction, do not trade or tip.
| IV. | ADDITIONAL PROHIBITED TRANSACTIONS |
Global Ship Lease considers it improper and inappropriate for any of its directors, officers or other employee to engage in short-term or speculative transactions in Global Ship Lease’s securities. Therefore, it is Global Ship Lease’s policy that directors, officers and other employees may not engage in any of the following transactions:
Short Sales. Short sales are sales of securities that the seller does not own at the time of the sale or, if owned, that will not be delivered within 20 days of the sale. One usually sells short when one thinks the market is going to decline substantially or the stock will otherwise drop in value. If the stock falls in price as expected, the person selling short can then buy the stock at a lower price for delivery at the earlier sale price (this is called “covering the short”) and pocket the difference in price as profit. Global Ship Lease believes that it is inappropriate for its insiders to bet against the securities of Global Ship Lease in this way. Puts, calls and options for common shares of Global Ship Lease (other than options granted pursuant to employee benefit plans) also afford the opportunity to profit from a market view that is adverse to Global Ship Lease, and they carry a high risk of inadvertent securities law violations. All such transactions are prohibited, unless approved in accordance with the Pre-clearance Procedures set forth in Section V.
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Publicly Traded Options. A transaction in options is, in effect, a bet on the short-term movement of Global Ship Lease’s shares and therefore creates the appearance that the Covered Person is trading based on inside information.
Transactions in options also may focus the Covered Person’s attention on short- term performance at the expense of Global Ship Lease’s long-term objectives. Accordingly, transactions in puts, calls or other derivative securities, on an exchange or in any other organized market, are prohibited by this Trading Policy unless approved in accordance with the Pre-clearance Procedures set forth in Section V. Option positions arising from certain types of hedging transactions are governed by the section below captioned “Hedging Transactions.”
Hedging Transactions. Certain forms of hedging or monetization transactions, such as zero-cost collars and forward sale contracts, allow a Covered Person to lock in much of the value of his or her stock holdings, often in exchange for all or part of the potential for upside appreciation in the stock. These transactions allow the Covered Person to continue to own the covered securities, but without the full risks and rewards of ownership. When that occurs, the Covered Person may no longer have the same objectives as Global Ship Lease’s other shareholders.
Therefore, Global Ship Lease prohibits you from engaging in such transactions. Any person wishing to enter into such an arrangement must first pre-clear the proposed transaction in accordance with the Pre-clearance Procedures set forth in Section V. Any request for pre-clearance of a hedging or similar arrangement must be submitted to the Chief Financial Officer at least two weeks prior to the proposed execution of documents evidencing the proposed transaction and must set forth a justification for the proposed transaction.
Margin Accounts and Pledges. Securities held in a margin account may be sold by a broker without the customer’s consent if the customer fails to meet a margin call. Similarly, securities pledged (or hypothecated) as collateral for a loan may be sold in foreclosure if the borrower defaults on the loan. Because a margin sale or foreclosure sale may occur at a time when the pledgor is aware of material nonpublic information or otherwise is not permitted to trade in Global Ship Lease securities, Covered Persons are prohibited from holding Global Ship Lease securities in a margin account or pledging Global Ship Lease securities as collateral for a loan. An exception to this prohibition may be granted where a person wishes to pledge Global Ship Lease securities as collateral for a loan (not including margin debt) and clearly demonstrates the financial capacity to repay the loan without resort to the pledged securities. Any person who wishes to pledge Global Ship Lease securities as collateral for a loan must first pre-clear the transaction in accordance with the Pre-clearance Procedures set forth in Section
| V. | Any request for pre-clearance to pledge securities must be submitted to the |
Chief Financial Officer at least two weeks prior to the proposed execution of documents evidencing the proposed pledge.
| V. | STATEMENT OF PROCEDURES PREVENTING INSIDER TRADING |
Pre-clearance Procedures
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To help prevent inadvertent violations of the U.S. federal securities laws and to avoid even the appearance of trading on inside information, Covered Persons, together with their family members, may not engage in any transaction involving Global Ship Lease’s securities (including a share plan transaction such as an option exercise, gift, loan or pledge or hedge, contribution to a trust, or any other transfer), even if not during a Quarterly Blackout Period or Event-Specific Blackout Period (described below), without first submitting a Trading Authorization Request (a form of which is attached as Exhibit A to this Trading Policy) to the Chief Financial Officer and obtaining the written approval of the transaction on such Trading Authorization Request by the Chief Financial Officer and either the Executive Chairman or the Chief Executive Officer (and in the case of transactions by the Chief Financial Officer, such Trading Authorization Request shall be submitted to the Chief Executive Officer and approved by any two of the Chief Executive Officer, Executive Chairman, or the Audit Committee Chair) (the “Pre-clearance Procedures”). Except as otherwise provided in this Trading Policy, a request for pre-clearance on the Trading Authorization Request form should be submitted in accordance with the Pre-clearance Procedures at least two business days in advance of the proposed transaction. None of the Chief Financial Officer, Chief Executive Officer, Executive Chairman, or Audit Committee Chair is under any obligation to approve a trade submitted for pre- clearance, and may determine not to permit the trade.
Any Covered Person who wishes to implement a trading plan under SEC Rule 10b5-1 must first pre-clear the plan at least two weeks prior to the proposed effective date of the plan in accordance with the Pre-clearance Procedures. As required by Rule 10b5-1, you may enter into a trading plan only when you are not in possession of material nonpublic information. In addition, you may not enter into a trading plan during a Quarterly Blackout Period or Event-Specific Blackout Period (described below). Transactions effected pursuant to a pre-cleared trading plan will not require further pre-clearance at the time of the transaction if the plan specifies the dates, prices and amounts of the contemplated trades, or establishes a formula for determining the dates, prices and amounts.
Post-Trading Reporting
All Covered Persons are required to report to the Chief Financial Officer any transaction in Global Ship Lease’s securities undertaken by them or members of their immediate families and personal household not later than the end of the business day on which the transaction occurs. Each report made to the Chief Financial Officer should include the date of the transaction, quantity, price and broker-dealer through which the transaction was effected. This reporting requirement may be satisfied by sending (or having your broker send) duplicate confirmations of trades to the Chief Financial Officer so long as the Chief Financial Officer receives that information by the required date.
Blackout Periods
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Quarterly Blackout Periods. Global Ship Lease’s announcement of its quarterly financial results almost always has the potential to have a material effect on the market for Global Ship Lease’s securities. To assure compliance with this Trading Policy and applicable securities laws, Global Ship Lease requires that all Covered Persons refrain from conducting transactions (including purchase or sale) involving Global Ship Lease’s securities during the period commencing at the close of the New York Stock Exchange trading market on the fourteenth (14th) calendar day after the last day of each fiscal quarter of Global Ship Lease and ending at the open of the New York Stock Exchange trading market on the trading day immediately following the completion of one (1) full trading session after the public release of Global Ship Lease’s financial results for such quarter (the “Quarterly Blackout Period”). The Quarterly Blackout Period is subject to adjustment in the discretion of any of the Executive Chairman, Chief Executive Officer or Chief Financial Officer, provided that any such officer making such adjustment notifies the other two officers of the adjustment.
Global Ship Lease may on occasion issue interim earnings guidance or other potentially material information by means of a press release, SEC filing on Form 6-K or other means designed to achieve widespread dissemination of the information. You should anticipate that trades are unlikely to be pre-cleared while Global Ship Lease is in the process of assembling the information to be released and until the information has been released and fully absorbed by the market.
Event-specific Blackout Periods. From time to time, an event may occur that is material to Global Ship Lease and is known by only a few directors or executives. Such events might include the negotiation of the purchase or sale of vessels, renegotiation of material contracts, such as charters or ship management contracts, or debt or equity issuances. As long as the event remains material and nonpublic, Global Ship Lease may impose a special blackout period during which Covered Persons may not trade in Global Ship Lease securities (an “Event- Specific Blackout Period”). The existence of an Event-Specific Blackout Period will not be announced, other than to those who are aware of the event giving rise to the blackout. If, however, a Covered Person requests pre-clearance permission to trade in Global Ship Lease’s securities during an Event-Specific Blackout Period, the Chief Financial Officer, having consulted with the Executive Chairman and Chief Executive Officer, will inform the requester of the existence of an Event-Specific Blackout Period, without disclosing the reason for the blackout. Any person made aware of the existence of an Event-Specific Blackout Period should not disclose the existence of the blackout to any other person.
Remember: Even if there is no Quarterly Blackout Period or Event-Specific Blackout Period in effect, any person possessing material non-public information concerning Global Ship Lease should not engage in any transactions in securities of Global Ship Lease until such information has been made public and absorbed by the market.
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Hardship Exceptions. Global Ship Lease may, on a case-by-case basis, authorize trading in Global Ship Lease’s securities during a Quarterly Blackout Period (but in no event during an Event Specific Blackout Period) due to financial hardship or other hardships only after:
| (1) | The individual trading has notified the Chief Financial Officer in writing, at least three business days prior to the proposed trade(s), of the circumstances of the hardship and the amount and nature of the proposed trade(s); and |
| (2) | The individual has certified to Global Ship Lease in writing, no more than two business days prior to the proposed trade(s), that he or she is not aware of material nonpublic information about Global Ship Lease. |
A hardship exception may be granted only if the Chief Financial Officer and either the Executive Chairman or the Chief Executive Officer conclude, based on information provided by the requesting individual, that such individual is not in possession of material nonpublic information about Global Ship Lease. None of the Chief Financial Officer, Executive Chairman or Chief Executive Officer is under any obligation to grant a hardship exception.
Post-Termination Transactions
If you are aware of material nonpublic information when you terminate service as a Covered Person, you may not trade in Global Ship Lease securities (or any other company’s securities, whether or not that company is a public company) until that information has become public or is no longer material. In all other respects, the procedures set forth in this Trading Policy will cease to apply to your transactions in Global Ship Lease securities upon the expiration of any Quarterly Blackout Period or Event-Specific Blackout Period that is applicable to your transactions at the time of your termination of service.
| VI. | PERMITTED TRANSACTIONS UNDER COMPANY PLANS |
Share Option Exercises. This Trading Policy does not apply to the exercise of an employee share option, or to the exercise of a tax withholding right pursuant to which you elect to have Global Ship Lease withhold shares subject to an option to satisfy tax withholding requirements. This Trading Policy does apply, however, to any sale of shares as part of a broker-assisted cashless exercise of an option, or any other market sale for the purpose of generating the cash needed to pay the exercise price of an option.
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Acknowledgement of Compliance
Your Personal Commitment to Global Ship Lease’s Trading Policy
I acknowledge that I have received and read Global Ship Lease’s Policies and Procedures to Detect and Prevent Insider Trading (the “Trading Policy”), and understand my obligations thereunder and hereby undertake, as a condition to my present and continued employment at, appointment to the Board, or other affiliation with Global Ship Lease, to comply with the principles, policies and laws outlined in the Trading Policy.
I hereby certify, to the best of my knowledge, that I have complied fully with all policies and procedures set forth in the Trading Policy.
I hereby certify, to the best of my knowledge, that I will continue to comply with the Trading Policy for as long as I am subject to the Trading Policy.
To the extent that I obtain knowledge of any violations of the Trading Policy, I will report such violations to the Chief Financial Officer of Global Ship Lease.
I understand that my agreement to comply with the Trading Policy does not constitute a contract of employment.
Please sign here:
Please print your name:
Date:
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Trading Authorization Request Section I: To be completed by the officer, director or employee Name:
Position:
Number and type of securities to be purchased or sold:
Type of Transaction: Purchase Sale
Certification
I certify that I am not in possession of material, nonpublic information about Global Ship Lease. Signature:
Date:
Section II: Approval
Approval #1
I approve disapprove the above transaction.
Name / Title Signature
Date:
Approval #2
I approve disapprove the above transaction.
Name / Title Signature
Date:
Note: This procedure must be repeated if the transaction is not completed within four business days beginning with the latest approval date in Section II.
SK 26296 0002 8476093