EX-4.25



 Exhibit 4.25 

Dated 2 January 2017 

ASTERIAS CRUDE CARRIER S.A. and 

SCORPIO CRUDE CARRIER S.A. 

as joint and several Borrowers 

and 
 THE BANKS AND FINANCIAL
INSTITUTIONS 
 listed in Schedule 1 

as Lenders 
 and 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK 

as Facility Agent, Security Trustee and Account Bank 

and 
 ING BANK N.V. and

 CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK 

as Bookrunners and Mandated Lead Arrangers 

and 
 ING BANK N.V. 

as Swap Bank 
 LOAN AGREEMENT

 relating to a post- delivery secured term loan facility of up to US$70,200,000 

to refinance in part and to finance part of the construction and acquisition cost of 

two Aframax tankers being constructed by Daehan Shipbuilding Co., Ltd. 

in the Republic of South Korea 







 Index 
  

							
	Clause	  	 	  	Page	 
			
	 1
	  	 Interpretation
	  	 	2	 
	 2
	  	 Facility
	  	 	25	 
	 3
	  	 Position of the Lenders, the Swap Bank and the Majority Lenders
	  	 	26	 
	 4
	  	 Drawdown and Dropdown Option
	  	 	27	 
	 5
	  	 Interest
	  	 	29	 
	 6
	  	 Interest Periods
	  	 	30	 
	 7
	  	 Default Interest
	  	 	31	 
	 8
	  	 Repayment and Prepayment
	  	 	32	 
	 9
	  	 Conditions Precedent
	  	 	36	 
	 10
	  	 Representations and Warranties
	  	 	37	 
	 11
	  	 General Undertakings
	  	 	41	 
	 12
	  	 Corporate Undertakings
	  	 	46	 
	 13
	  	 Insurance
	  	 	47	 
	 14
	  	 Ship covenants
	  	 	54	 
	 15
	  	 Security Cover
	  	 	59	 
	 16
	  	 Payments and Calculations
	  	 	61	 
	 17
	  	 Application of Receipts
	  	 	64	 
	 18
	  	 Application of Earnings
	  	 	65	 
	 19
	  	 Event of Default
	  	 	68	 
	 20
	  	 Fees and Expenses
	  	 	74	 
	 21
	  	 Indemnities
	  	 	75	 
	 22
	  	 No Set-Off or Tax Deduction
	  	 	78	 
	 23
	  	 Illegality, etc
	  	 	81	 
	 24
	  	 Increased Costs
	  	 	81	 
	 25
	  	 Set-Off
	  	 	83	 
	 26
	  	 Transfers and Changes in Lending Offices
	  	 	84	 
	 27
	  	 Variations and Waivers
	  	 	91	 
	 28
	  	 Notices
	  	 	93	 
	 29
	  	 Joint and Several Liability
	  	 	95	 
	 30
	  	 Confidentiality
	  	 	97	 
	 31
	  	 Supplemental
	  	 	100	 
	 32
	  	 Law and Jurisdiction
	  	 	101	 
	 33
	  	 Bail-In
	  	 	102	 
	 Schedule 1 Lenders and Commitments
	  	 	103	 
	 Schedule 2 Drawdown Notice
	  	 	104	 
	 Schedule 3 Conditions Precedent Documents
	  	 	105	 
	 Schedule 4 Transfer Certificate
	  	 	109	 
	 Schedule 5 Designation Notice
	  	 	113	 
	 Schedule 6 Power of Attorney
	  	 	114	 
	 Execution Pages
	  	 	115	 









			
	THIS LOAN AGREEMENT is made on 2 January 2017

 BETWEEN: 
  

	(1)	ASTERIAS CRUDE CARRIER S.A. and SCORPIO CRUDE CARRIER S.A., each being a corporation incorporated in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands MH96960 (together, the “Borrowers”). 

  

	(2)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders. 

  

	(3)	ING BANK N.V. as Swap Bank. 

  

	(4)	ING BANK N.V., LONDON BRANCH and CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK as Mandated Lead Arrangers. 


 

	(5)	ING BANK N.V., LONDON BRANCH and CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK as Bookrunners. 

  

	(6)	CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK as Facility Agent, Security Trustee and Account Bank. 


WHEREAS 
  

	(A)	The Lenders have agreed to make available to the Borrowers, or, following a Dropdown (as defined below), to the Borrowers that are members of the relevant Group, a post-delivery secured term loan facility (divided into
two advances) of up to US$70,200,000 in aggregate for the purpose of: 

  

	 	(i)	in the case of Advance A (as defined below), being in an amount of up to the lower of (i) US$35,100,000 and (ii) 65 per cent. of the market value (determined in accordance with the valuations of that Ship
referred to in paragraph 4 of Schedule 3) of one Aframax tanker with Builder’s Hull No. 5011 and to be made available in one advance to finance the delivery instalment in connection with the acquisition cost of such ship or, as the case
may be, refinance certain pre-delivery instalments or the delivery instalment; and 

  

	 	(ii)	in the case of Advance B (as defined below), being in an amount of up to the lower of (i) US$35,100,000 and (ii) 65 per cent. of the market value (determined in accordance with the valuations of that Ship
referred to in paragraph 4 of Schedule 3) of one Aframax tanker with Builder’s Hull No. 5012 and to be made available in one advance to finance the delivery instalment in connection with the acquisition cost of such ship or, as the case
may be, refinance certain pre-delivery instalments or the delivery instalment; 

  

	(B)	The Swap Bank may agree to enter into interest rate swap transactions with each Borrower from time to time to hedge that Borrower’s exposure under this Agreement to interest rate fluctuations. 


 

	(C)	The Lenders and the Swap Bank have agreed to share pari passu in the security to be granted to the Security Trustee pursuant to this Agreement. 








 IT IS AGREED as follows: 
  

	1	INTERPRETATION 

  

	1.1	Definitions 

 Subject to Clause 1.5, in this Agreement: 

“Acceptable Bank” means a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced
debt obligations of BBB+ or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or Baa1 or higher by Moody’s Investor Service Limited or a comparable rating from an internationally recognised credit rating agency
which is approved by the Majority Lenders; 
 “Account” means each of the Operating Accounts, the Minimum Working Capital
Accounts and the Retention Accounts, and in the plural, means all of them; 
 “Account Bank” means Crédit Agricole
Corporate and Investment Bank acting through its office at 12, place des Etats-Unis, CS 70052, 92547 Montrouge Cedex, France; 

“Accounts Pledge” means, in respect of each Account, a pledge agreement creating security in respect of that Account, in the
Agreed Form, and in the plural means all of them; 
 “Advance” means each of Advance A or Advance B and in the plural means
all of them; 
 “Advance A” means that part of the Loan made or to be made available to the Borrowers, or, following a
Dropdown, to the Borrower that is a member of the relevant Group, to finance or, as the case may be, refinance in part the acquisition cost of Ship A in a principal amount as at the relevant Drawdown Date not exceeding the lower of (i) $35,100,000
and (ii) 65 per cent. of the Initial Market Value of Ship A; 
 “Advance B” means that part of the Loan made or to be
made available to the Borrowers, or, following a Dropdown, to the Borrower that is a member of the relevant Group, to finance or, as the case may be, refinance in part the acquisition cost of Ship B in a principal amount as at the relevant Drawdown
Date not exceeding the lower of (i) $35,100,000 and (ii) 65 per cent. of the Initial Market Value of Ship B; 

“Advances” means, together, Advance A and Advance, B and, in the singular, means any of them; 

“Affected Borrower” means a Borrower that is the subject of a Dropdown and in respect of which the conditions stated in
paragraphs (a) to (e) of Clause 4.9 have been satisfied and in the plural means all of them; 
 “Affected Clauses” has
the meaning given in Clause 29.2; 
 “Affected Lender” has the meaning given in Clause 5.6; 

“Affiliate” means, in relation to any person, a subsidiary of that person or a holding company of that person or any other
subsidiary of that holding company. 
 “Age” means, in relation to a Ship at any time, the number of whole years having
elapsed from the year in which the construction of that Ship was completed; 
 “Agency and Trust Agreement” means the agency
and trust agreement executed or to be executed between the Borrowers, the Lenders, the Swap Bank and the Security Trustee in the Agreed Form; 

  
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 “Agreed Form” means, in relation to any document, that document in the form
approved in writing by the Facility Agent acting reasonably (acting on the instructions of the Majority Lenders) or as otherwise approved in accordance with any other approval procedure specified in any relevant provision of any Finance Document;

 “Approved Broker” means each of Arrow Valuations (London), H. Clarksons & Co. Ltd., Maersk Brokers K/S, Barry
Rogliano Salles, Howe Robinson & Co. Ltd Shipbrokers and Poten & Galbraiths or any other brokers approved by the Majority Lenders (such approval not to be unreasonably withheld or delayed) and in the plural means all of them; 

“Approved Charterer” means the Tesoro Charterer and any other charterer acceptable in all respects to the Lenders such
acceptance not to be unreasonably withheld or delayed; 
 “Approved Flag” means the Republic of the Marshall Islands flag or
such flag as the Facility Agent may, with the authorisation of all the Lenders, approve as the flag on which a Ship shall be registered, such approval not to be unreasonably withheld or delayed (Liberia, Malta, Panama and Singapore shall be
considered acceptable); 
 “Approved Flag State” means the Republic of the Marshall Islands or any other country in which
the Facility Agent may with the authorisation of all the Lenders, approve that a Ship be registered, such approval not to be unreasonably withheld or delayed); 

“Approved Manager” means, in relation to a Ship, Capital Ship Management Corp., a company incorporated in Panama having its
registered office at Hong Kong Bank Building, 6th floor, Samuel Lewis Avenue, Panama, Republic of Panama, or any other company which the Lenders may approve (such approval not to be unreasonably withheld or delayed) from time to time as the
commercial, technical and/or operational manager of that Ship; 
 “Approved Manager’s Undertaking” means, in relation
to each Ship, a letter of undertaking executed or to be executed by the Approved Manager in favour of the Security Trustee in the terms required by the Security Trustee agreeing certain matters in relation to the Approved Manager serving as the
manager of the Ship and subordinating the rights of the Approved Manager against such Ship and the Borrower which is the owner thereof to the rights of the Creditor Parties under the Finance Documents, in the Agreed Form and in the plural means all
of them; 
 “Availability Period” means the period commencing on the date of this Agreement and ending on the earlier of:

  

	 	(a)	the latest delivery date permitted under the Shipbuilding Contract to which that Advance relates (being the earliest date on which the Borrower which is a party to that Shipbuilding Contract may cancel, rescind or
terminate the Shipbuilding Contract for delay); 

  

	 	(b)	the date on which the Tesoro Charterer is entitled to cancel the applicable Tesoro Charter if the relevant Ship has not been delivered to the Tesoro Charterer for operation under the applicable Tesoro Charter by that
date (unless the Tesoro Charterer has agreed to extend such date); and 

  

	 	(c)	30 September 2017; 

 “Bail-In
Action” means the exercise of any Write-down and Conversion Powers. 
 “Bail-In
Legislation” means, in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and
investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time. 

  
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 “Balloon Instalment” has the meaning given to that term in Clause 8.1(b); 

“Basel III” means: 
  

	 	(a)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III:
International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December
2010, each as amended, supplemented or restated; 

  

	 	(b)	the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement - Rules text” published by the Basel
Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and 

  

	 	(c)	any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”; 


“Borrower” means each of Borrower A and Borrower B and in the plural, means both of them; 

“Borrower A” means Asterias Crude Carrier S.A., a corporation incorporated in the Marshall Islands, whose registered office is
at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960; 
 “Borrower B” means Scorpio
Crude Carrier S.A., a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960; 

“Builder” means Daehan Shipbuilding Co., a corporation organised and existing under the laws of the Republic of South Korea
whose principal office is at 887 Gurimri Hwawonmyun Haenam-Gun, Gurimri, 536-881, the Republic of South Korea; 

“Break Costs” has the meaning given in Clause 21.2; 

“Business Day” means a day on which banks are open in London, Paris, Athens and Piraeus and in respect of a day on which a
payment is required to be made under a Finance Document, also in New York City; 
 “Charterparty” means each Tesoro Charter
and any bareboat charterparty or any time charterparty in respect of a Ship having a duration of at least 12 months or more (excluding options to extend contained therein), made with an Approved Charterer and in all other respects on terms
acceptable in all respects to the Lenders, such acceptance not to be unreasonably withheld or delayed Provided that if any such charterparty requires entry into a letter of quiet enjoyment with the financiers of a Ship, such letter of quiet
enjoyment shall be in a form acceptable to the Facility Agent and include, without limitation, step-in rights for the Creditor Parties; 

“Charterparty Assignment” means, in relation to a Ship, an assignment of the rights of the Borrower which is the owner of that
Ship under the Charterparty relative to that Ship executed or to be executed by the relevant Borrower in favour of the Security Trustee and notified to and acknowledged (on a best efforts basis) by an Approved Charterer in the Agreed Form and, in
the plural, means all of them; 
 “CMTC Group” means the Guarantor and its consolidated or wholly owned subsidiaries
(whether direct or indirect and including but not limited to, each Borrower (other than an Affected Borrower)) from time to time during the Security Period. 

  
 4 








 “Code” means the US Internal Revenue Code of 1986; 

“Commitment” means, in relation to a Lender, the amount set opposite its name in Schedule 1, or, as the case may require, the
amount specified in the relevant Transfer Certificate as that amount may be reduced, cancelled or terminated in accordance with this Agreement (and “Total Commitments” means the aggregate of the Commitments of all the Lenders); 

“Confidential Information” means all information relating to a Borrower, any Security Party, any Group, the Finance Documents
or the Loan of which a Creditor Party becomes aware in its capacity as, or for the purpose of becoming, a Creditor Party or which is received by a Creditor Party in relation to, or for the purpose of becoming a Creditor Party under, the Finance
Documents or the Loan from either: 
  

	 	(a)	any member of any Group or any of its advisers; or 

  

	 	(b)	another Creditor Party, if the information was obtained by that Creditor Party directly or indirectly from any member of any Group or any of its advisers, 


in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording
information which contains or is derived or copied from such information but excludes: 
  

	 	(i)	information that: 

  

	 	(A)	is or becomes public information other than as a direct or indirect result of any breach by that Creditor Party of Clause 30; or 

  

	 	(B)	is identified in writing at the time of delivery as non-confidential by any member of a Group or any of its advisers; or 


 

	 	(C)	is known by that Creditor Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that Creditor Party after that date, from a source which
is, as far as that Creditor Party is aware, unconnected with the Group(s) and which, in either case, as far as that Creditor Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality; and


  

	 	(ii)	the Reference Bank Rate or any rate determined pursuant to Clauses 5.10 and 5.12; 


“Confirmation” and “Early Termination Date”, in relation to any continuing Designated Transaction, have the
meanings given in the relevant Master Agreement; 
 “Contractual Currency” has the meaning given in Clause 21.5; 

“Contribution” means in relation to a Lender, the part of the Loan which is owing to that Lender; 

“Control” means the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to: 

 

	 	(a)	cast, or control the casting of, more than 50 per cent. of the maximum number of votes that might be cast at a general meeting of the Guarantor and/or following a Dropdown, the Substitute Guarantor; or



  
 5 









	 	(b)	appoint or remove all of the directors or other equivalent officers of the Guarantor and/or following a Dropdown, the Substitute Guarantor; or 


 

	 	(c)	give directions with respect to the operating and financial policies of the Guarantor and/or following a Dropdown, the Substitute Guarantor with which the directors or other equivalent officers of the Guarantor and/or
following a Dropdown, the Substitute Guarantor are obliged to comply. 

 “CPLP Group” means the Substitute
Guarantor and its subsidiaries (whether direct or indirect and including any Affected Borrower) from time to time during the Security Period; 

“CRD IV” means Directive 2013/36/EU of 26 June 2013 on access to the activity of credit institutions and the prudential
supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directive 2006/48/EC and 2006/29/EC. 

“Creditor Party” means the Facility Agent, the Security Trustee, the Mandated Lead Arrangers, the Swap Bank, the Account Bank
or any Lender, whether as at the date of this Agreement or at any later time; 
 “CRR” means Regulation (EU)
No. 575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No. 648/2012. 

“Deed of Covenant” means, in relation to a Ship registered or to be registered under Cyprus or Malta flag, a deed of covenant
collateral to the Mortgage of that Ship creating charges over the Ship, executed or to be executed by the Borrower which is the owner of that Ship in favour of the Security Trustee, in the Agreed Form, and in the plural means all of them; 

“Defaulting Lender” means any Lender: 
  

	 	(a)	which has failed to make available the relevant proportion of its Commitment or has given notice to the Facility Agent that it will not make such amount available by the relevant Drawdown Date pursuant to Clause 4.6; or


  

	 	(b)	which has otherwise rescinded or repudiated a Finance Document; or 

  

	 	(c)	with respect to which an Insolvency Event has occurred and is continuing, 

 unless, in the case
of paragraph (a) above: 
  

	 	(i)	its failure to pay is caused by: 

  

	 	(A)	an administrative or technical error; or 

  

	 	(B)	a Disruption Event; and 

 payment is made within 5 Business Days of its due date; or 

 

	 	(ii)	the Lender is disputing in good faith whether it is contractually obliged to make the relevant payment; 


“Delivery Date” means, in relation to each Ship, the date on which title to and possession of that Ship is transferred from
the Builder to the relevant Borrower pursuant to the Shipbuilding Contract to which that Borrower is a party; 
 “Designated
Person” means a person: 
  

	 	(a)	that is, or is owned or controlled by one or more persons that are listed on a Sanctions List, or is otherwise the target of any Sanctions; 


  
 6 









	 	(b)	located in or organized under the laws of any jurisdiction that is, or whose government is, targeted by Sanctions, including, as of the date of this Agreement, Cuba, the Crimea Region of the Ukraine, Iran, North Korea,
Sudan and Syria; 

  

	 	(c)	acting or purporting to act on behalf of any of the persons listed in paragraphs (a) and (b) above; or 

  

	 	(d)	with which any relevant Creditor Party is prohibited from (i) dealing or (ii) otherwise engaging in any transaction pursuant to any Sanctions; 


“Designated Transaction” means a Transaction which fulfils the following requirements: 

 

	 	(a)	it is entered into by a Borrower pursuant to the Master Agreement to which it is a party with the Swap Bank which, at the time the Transaction is entered into, is also a Lender (or an affiliate of a Lender);


  

	 	(b)	its purpose is the hedging of that Borrower’s exposure under this Agreement to fluctuations in LIBOR arising from the funding of the Loan (or any part thereof) for a period expiring no later than the final
Repayment Date; and 

  

	 	(c)	it is designated by delivery by the Swap Bank to the Facility Agent and the Borrowers of a notice of designation in the form set out in Schedule 5, as a Designated Transaction for the purposes of the Finance Documents;


 “Disruption Event” means either or both of: 

 

	 	(a)	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Loan (or otherwise in
order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, a party to this Agreement (a “Party”); or 


 

	 	(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other, Party: 


 

	 	(i)	from performing its payment obligations under the Finance Documents; or 

  

	 	(ii)	from communicating with other parties in accordance with the terms of the Finance Documents, 


and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted; 

“Dollars” and “$” means the lawful currency for the time being of the United States of America; 

“Drawdown Date” means, in relation to either Advance, the date requested by the Borrowers for the Advance to be made, or (as
the context requires) the date on which the Advance is actually made; 
 “Drawdown Notice” means a notice in the form set
out in Schedule 2 (or in any other form which the Facility Agent, acting with the authorisation of all the Lenders, approves or reasonably requires); 

“Dropdown” has the meaning given in Clause 4.9; 

“Dropdown Date” means the date on which a Dropdown occurs; 

  
 7 








 “EEA Member Country” means any member state of the European Union, Iceland,
Liechtenstein and Norway. 
 “Earnings” means, in relation to a Ship, all moneys whatsoever which are now, or later become,
payable (actually or contingently) to the Borrower which is the owner of that Ship or the Security Trustee and which arise out of the use or operation of the Ship, including (but not limited to): 

 

	 	(a)	all freight, hire and passage moneys, compensation payable to that Borrower or the Security Trustee in the event of requisition of the Ship for hire, remuneration for salvage and towage services, demurrage and detention
moneys and damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of the Ship; 

  

	 	(b)	all moneys which are at any time payable under any Insurances in respect of loss of hire; and 

  

	 	(c)	if and whenever the Ship is employed on terms whereby any moneys falling within paragraphs (a) or (b) above are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or
sharing arrangement which is attributable to the Ship; 

 “Emma” means a corporation incorporated in the
Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 which holds 25 shares out of a total of 100 shares in each Borrower; 

“Environmental Claim” means: 
  

	 	(a)	any claim by any governmental, judicial or regulatory authority which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to any Environmental Law; or 


 

	 	(b)	any claim by any other person which relates to an Environmental Incident or to an alleged Environmental Incident, 


and “claim” means a claim for damages, compensation, fines, penalties or any other payment of any kind whether or not similar
to the foregoing; an order or direction to take, or not to take, certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the arrest or attachment of any asset; 

“Environmental Incident” means: 
  

	 	(a)	any release of Environmentally Sensitive Material from a Ship; or 

  

	 	(b)	any incident in which Environmentally Sensitive Material is released from a vessel other than a Ship and which involves a collision between a Ship and such other vessel or some other incident of navigation or operation,
in either case, in connection with which a Ship is actually or potentially liable to be arrested, attached, detained or injuncted and/or a Ship or a Borrower and/or any operator or manager is at fault or allegedly at fault or otherwise liable to any
legal or administrative action; or 

  

	 	(c)	any other incident in which Environmentally Sensitive Material is released otherwise than from a Ship and in connection with which a Ship is actually or potentially liable to be arrested and/or where a Borrower and/or
any operator or manager of a Ship is at fault or allegedly at fault or otherwise liable to any legal or administrative action; 


  
 8 








 “Environmental Law” means any law relating to pollution or protection of the
environment, to the carriage of Environmentally Sensitive Material or to actual or threatened releases of Environmentally Sensitive Material; 

“Environmentally Sensitive Material” means oil, oil products and any other substance (including any chemical, gas or other
hazardous or noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous; 
 “EU Bail-In Legislation Schedule” means the document described as such and published by the Loan Market Association (or any successor person) from time to time. 

“Event of Default” means any of the events or circumstances described in Clause 19.1; 

“FATCA” means: 
  

	 	(a)	sections 1471 to 1474 of the Code and any Treasury regulations thereunder: 

  

	 	(b)	any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the
implementation of paragraph (a) above; or 

  

	 	(c)	any agreement pursuant to the implementation of paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction;


 “FATCA Application Date” means: 
  

	 	(a)	in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;:


  

	 	(b)	in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from
sources within the US), 1 January 2019; or 

  

	 	(c)	in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2019, 


or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any
change in FATCA after the date of this Agreement; 
 “FATCA Deduction” means a deduction or withholding from a payment under
any Finance Document required by or under FATCA; 
 “FATCA Exempt Party” means a party to a Finance Document that is
entitled under FATCA to receive payments free from any FATCA Deduction; 
 “Fee Letter” means a letter issued or to be
issued by the Borrowers to the Facility Agent in which the Borrowers agree to pay certain fees to the Facility Agent in connection with this Agreement; 

“Finance Documents” means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	the Master Agreements; 


  
 9 









	 	(c)	the Master Agreement Assignments; 

  

	 	(d)	the Master Agreement Guarantees; 

  

	 	(e)	the Agency and Trust Agreement; 

  

	 	(f)	the Guarantee; 

  

	 	(g)	the Shares Pledges; 

  

	 	(h)	the General Assignments; 

  

	 	(i)	the Mortgages; 

  

	 	(j)	any Deeds of Covenant; 

  

	 	(k)	the Accounts Pledges; 

  

	 	(l)	the Fee Letter; 

  

	 	(m)	the Charterparty Assignments; 

  

	 	(n)	the Approved Manager’s Undertakings; 

  

	 	(o)	any New Shares Pledge; and 

  

	 	(p)	any other document (whether creating a Security Interest or not) which is executed at any time by the Borrowers or any other person as security for, or to establish any form of subordination or priorities arrangement in
relation to, any amount payable to the Lenders under this Agreement or any of the documents referred to in this definition and, in the singular, means any of them; 


“Final Maturity Date” means, in relation to each Advance, the earlier of the date falling on the seventh anniversary of the
Drawdown Date of the Advance and by 30 September 2024; 
 “Financial Indebtedness” means, in relation to a person (the
“debtor”), any liability of the debtor: 
  

	 	(a)	for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the debtor; 

  

	 	(b)	under any loan stock, bond, note or other security issued by the debtor; 

  

	 	(c)	under any acceptance credit, guarantee or letter of credit facility made available to the debtor; 

  

	 	(d)	under a financial lease, a deferred purchase consideration arrangement or any other agreement having the commercial effect of a borrowing or raising of money by the debtor; 


 

	 	(e)	under any interest or currency swap or any other kind of derivative transaction entered into by the debtor or, if the agreement under which any such transaction is entered into requires netting of mutual liabilities,
the liability of the debtor for the net amount; 

  

	 	(f)	under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability of another person which would fall within (a) to (e) if the references to the debtor referred to the other
person; 


  
 10 








 “General Assignment” means, in relation to a Ship, a general assignment of the
Earnings, the Insurances and any Requisition Compensation of such Ship, in the Agreed Form and in the plural means all of them; 

“Group” means: 
  

	 	(a)	in relation to the period from the date of this Agreement until the date of the first Dropdown, the CMTC Group; or 

  

	 	(b)	thereafter, the CMTC Group and/or the CPLP Group, and in the plural means both of them, 

 and
“member of a Group” shall be construed accordingly; 
 “Guarantee” means, the guarantee of the obligations
of certain Borrowers under this Agreement and the Finance Documents to which each such Borrower is a party to be given by the Guarantor in favour of the Security Trustee in the Agreed Form; 

“Guarantor” means Capital Maritime & Trading Corp., a corporation incorporated under the laws of the Republic of the
Marshall Islands and having its registered office at Trust Company House, Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960 the Marshall Islands; 

“Impaired Agent” means the Facility Agent at any time when: 

 

	 	(a)	it has failed to make (or has notified a party to a Finance Document that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment; 


 

	 	(b)	the Facility Agent otherwise rescinds or repudiates a Finance Document; 

  

	 	(c)	(if the Facility Agent is also a Lender), it is a Defaulting Lender under paragraph (a) or (b) of the definition of “Defaulting Lender”; or 


 

	 	(d)	an Insolvency Event has occurred and is continuing with respect to the Facility Agent, 


unless, in the case of paragraph (a) above: 
  

	 	(i)	its failure to pay is caused by: 

  

	 	(A)	an administrative or technical error; or 

  

	 	(B)	a Disruption Event; and 

  

	 	(ii)	payment is made within 10 Business Days of its due date; or 

  

	 	(iii)	the Facility Agent is disputing in good faith whether it is contractually obliged to make the payment in question; 


“Initial Market Value” means, in relation to each Ship, the Market Value thereof determined by taking the average of the
valuations of that Ship referred to in paragraph 4 of Schedule 3, Part B; 
 “Insolvency Event” in relation to a
Creditor Party means that that Creditor Party: 
  

	 	(a)	is dissolved (other than pursuant to a consolidation, amalgamation or merger); 


  
 11 









	 	(b)	becomes insolvent or that Creditor Party admits in writing that it is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; 


 

	 	(c)	makes a general assignment, arrangement, or composition with or for the benefit of its creditors; 

  

	 	(d)	institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or
organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition
is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official; 

  

	 	(e)	has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is
presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity
not described in paragraph (d) above and: 

  

	 	(i)	results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or 


 

	 	(ii)	is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; 

  

	 	(f)	has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); 


 

	 	(g)	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than,
for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a person or entity described in paragraph (d) above); 


 

	 	(h)	has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all
its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; 


 

	 	(i)	causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or


  

	 	(j)	takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; 


“Insurances” means, in relation to a Ship: 
  

	 	(a)	all policies and contracts of insurance or reinsurance, including entries of such Ship in any protection and indemnity or war risks association, which are effected in respect of such Ship, her Earnings or otherwise in
relation to her; and 

  

	 	(b)	all rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium or under any cut-through clause; 


  
 12 








 “Instalments” has the meaning given in Clause 8.1(a); 

“Interest Period” means a period determined in accordance with Clause 6; 

“Intermediate Shareholder” means Capital Product Operating LLC, a limited liability company formed in the Republic of the
Marshall Islands whose registered office is at Trust Company Complex Ajeltake Road, Ajeltake Island, Majuro MH 96960, the Marshall Islands; 

“Interpolated Screen Rate” means, in relation to LIBOR for an Interest Period, the rate (rounded to the same number of decimal
places as the two relevant Screen Rates) which results from interpolating on a linear basis between: 
  

	 	(a)	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than that Interest Period; and 


 

	 	(b)	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds that Interest Period, 


each as of 11.00 a.m. (London time) on the Quotation Day for the currency of the Loan; 

“ISM Code” means the International Safety Management Code (including the guidelines on its implementation), adopted by the
International Maritime Organisation as the same may be amended or supplemented from time to time (and the terms “safety management system”, “Safety Management Certificate” and “Document of
Compliance” have the same meanings as are given to them in the ISM Code); 
 “ISPS Code” means the International
Ship and Port Facility Security Code as adopted by the International Maritime Organisation, as the same may be amended or supplemented from time to time; 

“ISSC” means a valid and current International Ship Security Certificate issued under the ISPS Code; 

“Lender” means, subject to Clause 26.6, a bank or financial institution listed in Schedule 1 and acting through its branch
indicated in Schedule 1 (or through another branch notified to the Borrowers under Clause 26.14) or its transferee, successor or assign; 

“LIBOR” means, for an Interest Period: 
  

	 	(a)	the applicable Screen Rate; 

  

	 	(b)	(if no Screen Rate is available for that Interest Period) the Interpolated Screen Rate; or 

  

	 	(c)	if: 

  

	 	(i)	no Screen Rate is available for the currency of the Loan; or 

  

	 	(ii)	no Screen Rate is available for that Interest Period and it is not possible to calculate an Interpolated Screen Rate, 


the Reference Bank Rate, 
 as of,
in the case of paragraphs (a) and (c) above, 11.00 a.m. (London time) on the Quotation Day for the currency of the Loan and for a period equal in length to that Interest Period and, if any such rate is below zero, LIBOR will be deemed to be
zero; 
 “Loan” means the principal amount for the time being outstanding under this Agreement; 

  
 13 








 “Major Casualty” means, in relation to a Ship, any casualty to the Ship in
respect of which the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds $1,000,000 or the equivalent in any other currency; 

“Majority Lenders” means: 
  

	 	(a)	at any time when no Advances are outstanding, Lenders whose Commitments exceed in total 66 2/3 per cent. of the Total Commitments; and 


 

	 	(b)	at any other time, Lenders whose Contributions exceed in total 66 2/3 per cent. of the Loan; 


“Management Agreement” means, in relation to each Ship, an agreement made or to be made between (i) the Borrower which is
the owner of that Ship, or, in the case of a Ship owned by an Affected Borrower, the Substitute Guarantor and (ii) the Approved Manager in respect of the commercial and technical management of that Ship to be in form and substance in all
respects reasonably acceptable to the Lenders (it being agreed that the form and substance of the management agreement which has been entered into by the Substitute Guarantor as at the date of this Agreement and to which further Ships may become
subject is deemed to be acceptable) and, in the plural, means all of them; 
 “Margin” means 2.85 per cent. per annum;

 “Market Value” means, in respect of each Ship, the market value thereof determined from time to time in accordance with
Clause 15.4; 
 “Master Agreement” means any master agreement (on the 1992 or, as the case may be, 2002 ISDA (Multicurrency
- Crossborder) form) made between each Borrower and the Swap Bank and includes all Designated Transactions from time to time entered into and Confirmations from time to time exchanged under that master agreement and, in the plural, means all of
them; 
 “Master Agreement Assignment” means, in relation to a Master Agreement, the assignment of that Master Agreement in
favour of the Security Trustee executed or to be executed by the Borrower which is a party to that Master Agreement, in the Agreed Form and, in the plural, means all of them; 

“Master Agreement Guarantee” means a guarantee to be given by each Borrower in favour of the Security Trustee, guaranteeing
the obligations of the other Borrower (which is a member of the same Group as the Borrower executing the Master Agreement Guarantee) under the Master Agreement to which that Borrower is a party in the Agreed Form and, in the plural, means all of
them; 
 “Master Agreement Prepayment Proceeds” means any amount payable to a Borrower as a result of termination or closing
out under a Master Agreement. 
 “Material Adverse Change” means any event or series of events which, in the reasonable
opinion of the Majority Lenders, is likely to have a Material Adverse Effect; 
 “Material Adverse Effect” means a material
adverse effect on: 
  

	 	(a)	the business, property, assets, liabilities, operations or condition (financial or otherwise) of a Borrower and/or any Security Party taken as a whole; 


 

	 	(b)	the ability of a Borrower and/or any Security Party to (i) perform any of its obligations or (ii) discharge any of its liabilities, under any Finance Document as they fall due; or 


  
 14 









	 	(c)	the validity or enforceability of any Finance Document; 

 “Minimum Working Capital
Account” means, with respect to a Borrower, an account in the name of that Borrower with the Account Bank which is designated by the Facility Agent in writing as the Minimum Working Capital Account with respect to that Borrower for the
purposes of this Agreement and in the plural means both of them; 
 “Mortgage” means, in relation to a Ship, the first
preferred or, as the case may be, priority ship mortgage on that Ship under the relevant Approved Flag executed by the Borrower which is the owner of that Ship in favour of the Security Trustee, in the Agreed Form; 

“Negotiation Period” has the meaning given in Clause 5.9; 

“New Shares Pledge” means, in relation to an Affected Borrower, a pledge agreement executed by the Intermediate
Shareholder in favour of the Security Trustee each creating a Security Interest over the share capital of that Borrower in substantially the same form as the Shares Pledge (with logical modifications) and in the plural means all of them; 

“Notifying Lender” has the meaning given in Clause 23.1 or Clause 24.1 as the context requires; 

“Operating Account” means, with respect to a Borrower, an account in the name of that Borrower with the Account Bank which is
designated by the Facility Agent in writing as the Operating Account with respect to that Borrower for the purposes of this Agreement and in the plural means both of them; 

“Option” has the meaning given in Clause 4.9; 

“Payment Currency” has the meaning given in Clause 21.6; 

“Permitted Security Interests” means: 
  

	 	(a)	Security Interests created by the Finance Documents; 

  

	 	(b)	liens for unpaid crew’s wages in accordance with usual maritime practice; 

  

	 	(c)	liens for salvage; 

  

	 	(d)	liens arising by operation of law for not more than 2 months’ prepaid hire under any charter in relation to a Ship not prohibited by this Agreement; 


 

	 	(e)	liens for master’s disbursements incurred in the ordinary course of trading and any other lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of a Ship,
provided such liens do not secure amounts more than 45 days overdue (unless the overdue amount is being contested by the relevant Borrower in good faith by appropriate steps) and subject, in the case of liens for repair or maintenance, to Clause
14.13(e); 

  

	 	(f)	any Security Interest created in favour of a plaintiff or defendant in any action of the court or tribunal before whom such action is brought as security for costs and expenses where a Borrower is prosecuting or
defending such action in good faith by appropriate steps; and 

  

	 	(g)	Security Interests arising by operation of law in respect of taxes which are not overdue for payment other than taxes being contested in good faith by appropriate steps and in respect of which appropriate reserves have
been made; 


  
 15 








 “Pertinent Document” means: 

 

	 	(a)	any Finance Document; 

  

	 	(b)	any policy or contract of insurance contemplated by or referred to in Clause 13 or any other provision of this Agreement or another Finance Document; 


 

	 	(c)	any other document contemplated by or referred to in any Finance Document; and 

  

	 	(d)	any document which has been or is at any time sent by or to a Servicing Bank in contemplation of or in connection with any Finance Document or any policy, contract or document falling within paragraphs (b) or (c);


 “Pertinent Jurisdiction”, in relation to a company, means: 

 

	 	(a)	England and Wales; 

  

	 	(b)	the country under the laws of which the company is incorporated or formed; 

  

	 	(c)	a country in which the company has the centre of its main interests or which the company’s central management and control is or has recently been exercised; 


 

	 	(d)	a country in which the overall net income of the company is subject to corporation tax, income tax or any similar tax; 

  

	 	(e)	a country in which assets of the company (other than securities issued by, or loans to, related companies) having a substantial value are situated, in which the company maintains a branch or permanent place of business,
or in which a Security Interest created by the company must or should be registered in order to ensure its validity or priority; and 

  

	 	(f)	a country the courts of which have jurisdiction to make a winding up, administration or similar order in relation to the company, whether as a main or territorial or ancillary proceedings, or which would have such
jurisdiction if their assistance were requested by the courts of a country referred to in paragraphs (b) or (c) above; 


“Pertinent Matter” means: 
  

	 	(a)	any transaction or matter contemplated by, arising out of, or in connection with a Pertinent Document; or 

  

	 	(b)	any statement relating to a Pertinent Document or to a transaction or matter falling within paragraph (a), 


and covers any such transaction, matter or statement, whether entered into, arising or made at any time before the signing of this Agreement or
on or at any time after that signing; 
 “Potential Event of Default” means an event or circumstance which, with the giving
of any notice, the lapse of time, a determination of the Majority Lenders and/or the satisfaction of any other condition, would constitute an Event of Default; 

“Quotation Date” means, in relation to any Interest Period (or any other period for which an interest rate is to be determined
under any provision of a Finance Document), the day on which quotations would ordinarily be given by leading banks in the London interbank market for deposits in the currency in relation to which such rate is to be determined for delivery on the
first day of that Interest Period or other period; 

  
 16 








 “Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to
four decimal places) as supplied to the Facility Agent at its request by each Reference Bank as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in Dollars for the relevant period, were it to do so by
asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; 

“Reference Banks” means, subject to Clause 26.17 the head office of Crédit Agricole Corporate and Investment Bank and
the London branch of any other bank or financial institution selected by the Facility Agent and in the singular means any of them; 

“Related Fund” in relation to a fund (the “first fund”), means a fund which is managed or advised by the same
investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an affiliate of the investment manager or investment
adviser of the first fund; 
 “Relevant Person” has the meaning given in Clause 19.9; 

“Relevant Proportion” means at the time the same falls to be determined, the ratio that the Advance or, as applicable,
Advances owing by any Affected Borrower bear to the Loan at the time; 
 “Repayment Date” means a date on which a repayment
is required to be made under Clause 8; 
 “Representative” means any delegate, agent, manager, administrator, nominee,
attorney, trustee or custodian; 
 “Requisition Compensation” includes all compensation or other moneys payable by reason of
any act or event such as is referred to in paragraph (b) of the definition of “Total Loss”; 
 “Resolution
Authority” means any body which has authority to exercise any Write-down and Conversion Powers. 
 “Restricted
Party” means a person that: 
  

	 	(a)	is listed on any Sanctions List; 

  

	 	(b)	is located in or incorporated under the laws of a country or territory that is the target of country-wide or territory-wide Sanctions; 


 

	 	(c)	is directly or indirectly owned or controlled by, or acting on behalf of, a person referred to in (a) and/or (b) above; or 


 

	 	(d)	with whom a subject of a Sanctions Authority would be prohibited or restricted by law from engaging in trade, business or other activities. 


“Retention Account” means, with respect to a Borrower, an account in the name of that Borrower with the Account Bank which is
designated by the Facility Agent in writing as the Retention Account with respect to that Borrower for the purposes of this Agreement and in the plural means both of them; 

“Sanctions” means : 
  

	 	(a)	any trade, economic or financial sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by any Sanctions Authority 


  
 17 









	 	(b)	any law or regulation enacted, promulgated or issued by any Sanctions Authority after the date of this Agreement; 

  

	 	(c)	any other law, enabling legislation, executive order, or regulation promulgated under or based under the authorities of any of the foregoing; 


“Sanctions Authority” means (i) the United States of America, (ii) the United Nations, (iii) the European
Union, including its member states or (iv) include jurisdictions relevant to transaction or (v) the governments and official institutions or agencies of any of these countries or organisations, including without limitation OFAC and the
United States Department of State and Her Majesty’s Treasury; 
 “Sanctions List” means any of the lists of
specifically designated persons or entities (or equivalent) held by a Sanctions Authority, each as amended, supplemented or substituted from time to time; 

“Screen Rate” means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other
person which takes over the administration of that rate) for the relevant currency and period displayed on pages LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate or on the appropriate page of such
other information service which publishes that rate from time to time in place of Reuters). If such page or service ceases to be available, the Facility Agent may specify another page or service displaying the relevant rate after consultation with
the Borrowers; 
 “Secured Liabilities” means all liabilities which the Borrowers, the Security Parties or any of them have,
at the date of this Agreement or at any later time or times, under or by virtue of the Finance Documents or any judgment relating to the Finance Documents; and for this purpose, there shall be disregarded any total or partial discharge of these
liabilities, or variation of their terms, which is effected by, or in connection with, any bankruptcy, liquidation, arrangement or other procedure under the insolvency laws of any country; 

“Security Cover Ratio” means the ratio in respect of a Ship which is determined at any time by comparing: 

 

	 	(a)	the Market Value of that Ship and is subject to a Mortgage at the relevant time; plus 

  

	 	(b)	any amounts standing to the account of the Minimum Working Capital Account of the Borrower owning that Ship pursuant to Clause 11.21; plus 


 

	 	(c)	the net realisable value of any additional security previously provided under Clause 15 securing the Advance financing that Ship and any amounts owing in connection thereto or, if it secures more than one Advance, a
share of the net value which bears to the aggregate net value of additional security the same proportion as the Advance used to finance that Ship bears to the aggregate Advances secured by that security in connection with that Ship,


 against the aggregate of: 
  

	 	(a)	the Advance in respect of that Ship; plus 

  

	 	(b)	the aggregate Swap Exposure relating to such Advance; 

 “Security Interest”
means: 
  

	 	(a)	a mortgage, charge (whether fixed or floating) or pledge, any maritime or other lien or any other security interest of any kind; 


  
 18 









	 	(b)	the rights of the plaintiff under an action in rem in which the vessel concerned has been arrested or a writ has been issued or similar step taken; and 


 

	 	(c)	any arrangement entered into by a person (A) the effect of which is to place another person (B) in a position which is similar, in economic terms, to the position in which B would have been had he held a
security interest over an asset of A; but (c) does not apply to a right of set off or combination of accounts conferred by the standard terms of business of a bank or financial institution; 


“Security Party” means, for the purposes of Clauses 9.1(c), 10.11, 10.12, 10.18, 10.20, 11.9, 11.19, 11.20, 14.11, 14.19, 19
and 21 alone, Emma, and each of the Guarantor and, after the Option has been exercised, the Substitute Guarantor and any other person (except a Creditor Party and any Approved Charterer, other than the Guarantor, of any Ship, any other charterer or
the Approved Manager (in case it is not Capital Ship Management Corp. (or an affiliate or successor of Capital Ship Management Corp.)) who, as a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar
capacity, executes a document falling within the final paragraph of the definition of “Finance Documents”; 
 “Security
Period” means the period commencing on the date of this Agreement and ending on the date on which the Facility Agent notifies the Borrowers, the Security Parties and the Lenders that: 

 

	 	(a)	all amounts which have become due for payment by a Borrower or any Security Party under the Finance Documents have been paid; 

  

	 	(b)	no amount is owing or has accrued (without yet having become due for payment) under any Finance Document; 

  

	 	(c)	neither a Borrower nor any Security Party has any future or contingent liability under Clause 20, 21 or 22 below or any other provision of this Agreement or another Finance Document; and 


 

	 	(d)	the Facility Agent, the Security Trustee and the Majority Lenders do not consider that there is a significant risk that any payment or transaction under a Finance Document would be set aside, or would have to be
reversed or adjusted, in any present or possible future bankruptcy of a Borrower or a Security Party or in any present or possible future proceeding relating to a Finance Document or any asset covered (or previously covered) by a Security Interest
created by a Finance Document; 

 “Security Trustee” means Crédit Agricole Corporate and Investment
Bank, acting in such capacity through its office at 12, place des Etats-Unis, CS 70052, 92547 Montrouge Cedex, France, or any successor of it appointed under clause 5 of the Agency and Trust Agreement; 

“Servicing Bank” means the Facility Agent or the Security Trustee; 

“Shares Pledge” means, in relation to a Borrower, a pledge agreement executed by the Guarantor and Emma in favour of the
Security Trustee creating a Security Interest over the share capital of that Borrower, in the Agreed Form and in the plural means all of them; 

“Ship A” means the Aframax tanker with shallow draft design, having Builder’s hull number 5011 of approximately
112,800 deadweight with Ice Class 1C and enhanced specifications for universal trading, which is to be constructed by the Builder for, and purchased by, Borrower A under Shipbuilding Contract A for a contract price of $53,927,000 inclusive of
extra specifications and which, on delivery, is to be named “ARISTAIOS” and registered in the name of Borrower A under an Approved Flag; 

  
 19 








 “Ship B” means the Aframax tanker with shallow draft design, having
Builder’s hull number 5012 of approximately 112,800 deadweight with Ice Class 1C and enhanced specifications for universal trading, which is to be constructed by the Builder for, and purchased by, Borrower B under Shipbuilding Contract B
for a contract price of $53,927,000 inclusive of extra specifications and which, on delivery, is to be named “ARISTOKLIS” and to be registered in the name of Borrower B under an Approved Flag; 

“Ship Commitment” means, in relation to a Ship and a Lender, half of that Lender’s Commitment; 

“Shipbuilding Contract” means each of Shipbuilding Contract A and Shipbuilding Contract B, and, in the plural, means all of
them; 
 “Shipbuilding Contract A” means the shipbuilding contract dated 20 May 2015, as amended by a first
amendment dated 27 May 2015 and a second amendment dated 18 June 2015 and made between (i) the Builder and (ii) Sea Lord Tankers and subsequently assigned to Borrower A pursuant to a letter of nomination dated 2 January 2017
for the construction by the Builder of Ship A and its purchase by Borrower A (as amended and supplemented from time to time); 

“Shipbuilding Contract B” means the shipbuilding contract dated 20 May 2015, as amended by a first amendment dated
24 June 2015 and a second amendment dated 18 June 2015 and made between (i) the Builder and (ii) Sea Lord Tankers and subsequently assigned to Borrower B pursuant to a letter of nomination dated 2 January 2017 for the
construction by the Builder of Ship B and its purchase by Borrower B (as amended and supplemented from time to time); 

“Ships” means, together, Ship A and Ship B and in the singular means any of them; 

“Substitute Guarantor” means Capital Product Partners L.P., a limited partnership formed in the Republic of the Marshall
Islands whose registered office is at Trust Company Complex Ajeltake Road, Ajeltake Island, Majuro MH 96960, the Marshall Islands; 

“Substitute Guarantor Guarantee” means the guarantee of the obligations of an Affected Borrower under this Agreement and the
Finance Documents to which such Affected Borrower is a party to be given by the Substitute Guarantor in substantially the same form as the Guarantee (with all logical modifications and including an express restriction on the Substitute Guarantor
pledging any of its shares in the Intermediate Shareholder) executed by the Substitute Guarantor in favour of the Security Trustee in the Agreed Form; 

“Swap Bank” means each of: 
  

	 	(a)	Crédit Agricole Corporate and Investment Bank acting through its office at 12, place des Etats-Unis, CS 70052, 92547 Montrouge Cedex, France; 


 

	 	(b)	ING Bank N.V., acting through its office at Treasury Building, Foppingadreef 7, 1102 BD Amsterdam, The Netherlands; and 

  

	 	(c)	any Transferee Lender that has become a Lender in accordance with Clause 26.7 that may wish to enter into a master agreement with any of the Borrowers, 


and, in the plural, means all of them. 

“Swap Exposure” means, as at any relevant date, the amount certified by the Swap Bank to the Facility Agent to be the
aggregate net amount in Dollars which would be payable by a Borrower to the Swap Bank under (and calculated in accordance with) section 6(e) (Payments on Early Termination) of the relevant Master Agreement if an Early Termination Date had occurred
on the relevant date in relation to all continuing Designated Transactions in respect of the Master Agreement entered into between that Borrower and the Swap Bank; 

  
 20 








 “Tesoro Charter” means each of the Tesoro Ship A Charter and the Tesoro Ship B
Charter and, in the plural, means both of them; 
 “Tesoro Charterer” means Tesoro Far East Maritime Company, a company
incorporated in the US and having its registered office at 19100 Ridgewood Parkway, San Antonio, Texas 78259, US and its successors in title; 

“Tesoro Ship A Charter” means the time charterparty entered into by Borrower A with the Tesoro Charterer dated 2 October
2015 for a minimum term of five years plus or minus forty five (45) days outright and at a minimum gross daily hire rate of $26,400 and in other respects acceptable to the Lenders; 

“Tesoro Ship B Charter” means the time charterparty entered into by Borrower B with the Tesoro Charterer dated 2 October
2015 for a minimum term of five years plus or minus forty five (45) days outright and at a minimum gross daily hire rate of $26,400 and in other respects acceptable to the Lenders; 

“Total Loss” means, in relation to a Ship: 
  

	 	(a)	actual, constructive, compromised, agreed or arranged total loss of that Ship; 

  

	 	(b)	any expropriation, confiscation, requisition or acquisition of that Ship, whether for full consideration, a consideration less than her proper value, a nominal consideration or without any consideration, which is
effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority, unless it is within 1 month from the date of such occurrence redelivered to the full control of the
Borrower owning that Ship, excluding a requisition for hire for a fixed period not exceeding 360 days without any right to an extension; 

  

	 	(c)	any condemnation of the Ship by any tribunal or by any person or persons claiming to be a tribunal; and 

  

	 	(d)	any arrest, capture, seizure, confiscation or detention of the Ship (including any hijacking (piracy) or theft) unless she is within 90 days redelivered to the full control of the Borrower owning the Ship;


 “Total Loss Date” means, in relation to a Ship: 

 

	 	(a)	in the case of an actual loss of that Ship, the date on which it occurred or, if that is unknown, the date when the Ship was last heard of; 


 

	 	(b)	in the case of a constructive, compromised, agreed or arranged total loss of the Ship, the earliest of: 

  

	 	(i)	30 days after the date on which a notice of abandonment is given to the insurers; and 

  

	 	(ii)	the date of any compromise, arrangement or agreement made by or on behalf of the Borrower owning the Ship, with that Ship’s insurers in which the insurers agree to treat the Ship as a total loss; and


  

	 	(c)	in the case of any other type of total loss, on the date (or the most likely date) on which it appears to the Facility Agent that the event constituting the total loss occurred; 


  
 21 








 “Transaction” has the meaning given in the relevant Master Agreement; 

“Transfer Certificate” has the meaning given in Clause 26.2; 

“Trust Property” has the meaning given in clause 3.1 of the Agency and Trust Agreement; 

“UHRC” means Cuba, Iran, North Korea, Sudan and/or Syria; 

“Underlying Documents” means, together, the Shipbuilding Contracts and the Tesoro Charters and, in the singular, means any of
them; 
 “Unscheduled Amount” has the meaning given in Clause 29.2; 

“US” means the United States of America; 

“US Tax Obligor” means: 
  

	 	(a)	a Borrower which is resident for tax purposes in the US; or 

  

	 	(b)	a Borrower or any Security Party, in each case, some or all of whose payments under the Finance Documents are from sources within the United States for United States federal income tax purposes; and 


“Write-down and Conversion Powers” means: 
  

	 	(a)	in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in
relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule; and 

  

	 	(b)	in relation to any other applicable Bail-In Legislation: 

  

	 	(i)	any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of
a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into
shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the
powers under that Bail-In Legislation that are related to or ancillary to any of those powers; and 

  

	 	(ii)	any similar or analogous powers under that Bail-In Legislation. 

  

	1.2	Construction of certain terms 

 In this Agreement: 

“approved” means, for the purposes of Clause 13, approved in writing by the Facility Agent; 

“asset” includes every kind of property, asset, interest or right, including any present, future or contingent right to any
revenues or other payment; 
 “company” includes any partnership, joint venture and unincorporated association; 

“consent” includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration, notarisation and
legalisation; 

  
 22 








 “contingent liability” means a liability which is not certain to arise and/or
the amount of which remains unascertained; 
 “document” includes a deed; also a letter or fax; 

“excess risks” means, in relation to a Ship, the proportion of claims for general average, salvage and salvage charges not
recoverable under the hull and machinery policies in respect of the Ship in consequence of her insured value being less than the value at which the Ship is assessed for the purpose of such claims; 

“expense” means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable value
added or other tax; 
 “gross negligence” means a form of negligence which is distinct from ordinary negligence, in which
the due diligence and care which are generally to be exercised have been disregarded to a particularly high degree, in which the plainest deliberations have not been made and that which should be most obvious to everybody has not been followed; 

“law” includes any form of delegated legislation, any order or decree, any treaty or international convention and any
regulation or resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council; 

“legal or administrative action” means any legal proceeding or arbitration and any administrative or regulatory action or
investigation; 
 “liability” includes every kind of debt or liability (present or future, certain or contingent), whether
incurred as principal or surety or otherwise; 
 “months” shall be construed in accordance with Clause 1.3; 

“obligatory insurances” means, in relation to a Ship, all insurances effected, or which the Borrower owning the Ship is
obliged to effect, under Clause 13 below or any other provision of this Agreement or another Finance Document; 
 “parent
company” has the meaning given in Clause 1.4; 
 “person” includes any individual, any partnership, any company;
any state, political sub-division of a state and local or municipal authority; and any international organisation; 

“policy”, in relation to any insurance, includes a slip, cover note, certificate of entry or other document evidencing the
contract of insurance or its terms; 
 “protection and indemnity risks” means the usual risks covered by a protection and
indemnity association managed in London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the
incorporation in them of clause 6 of the International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the Institute Time Clauses (Hulls)(1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10/183) or the Institute Amended Running Down
Clause (1/10/71) or any equivalent provision; 
 “regulation” includes any regulation, rule, official directive, request or
guideline (either having the force of law or compliance with which is reasonable in the ordinary course of business of the party concerned) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 
 “subsidiary” has the meaning given
in Clause 1.4; 

  
 23 








 “successor” includes any person who is entitled (by assignment, novation, merger
or otherwise) to any other person’s rights under this Agreement or any other Finance Document (or any interest in those rights) or who, as administrator, liquidator or otherwise, is entitled to exercise those rights; and in particular
references to a successor include a person to whom those rights (or any interest in those rights) are transferred or pass as a result of a merger, division, reconstruction or other reorganisation of it or any other person; 

“tax” includes any present or future tax, duty, impost, levy or charge of any kind which is imposed by any state, any
political sub-division of a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any connected penalty, interest or fine; and 

“war risks” includes the risk of mines and all risks excluded by clause 29 of the International Hull Clauses (1/11/02 or
1/11/03), clause 24 of the Institute Time Clauses (Hulls)(1/11/1995) or clause 23 of the Institute Time Clauses (Hulls) (1/10/83). 
  

	1.3	Meaning of “month” 

 A period of one or more “months” ends on the day
in the relevant calendar month numerically corresponding to the day of the calendar month on which the period started (“the numerically corresponding day”), but: 

 

	(a)	on the Business Day following the numerically corresponding day if the numerically corresponding day is not a Business Day or, if there is no later Business Day in the same calendar month, on the Business Day preceding
the numerically corresponding day; or 

  

	(b)	on the last Business Day in the relevant calendar month, if the period started on the last Business Day in a calendar month or if the last calendar month of the period has no numerically corresponding day,


 and “month” and “monthly” shall be construed accordingly. 

 

	1.4	Meaning of “subsidiary” 

 A company (S) is a subsidiary of another company
(P) if: 
  

	(a)	a majority of the issued shares in S (or a majority of the issued shares in S which carry unlimited rights to capital and income distributions) are directly owned by P or are indirectly attributable to P; or


  

	(b)	P has direct or indirect control over a majority of the voting rights attached to the issued shares of S; or 

  

	(c)	P has the direct or indirect power to appoint or remove a majority of the directors of S, 

 and
any company of which S is a subsidiary is a parent company of S. 
  

	1.5	General Interpretation 

  

	(a)	In this Agreement: 

  

	 	(i)	references to, or to a provision of, a Finance Document or any other document are references to it as amended or supplemented, whether before the date of this Agreement or otherwise; 


 

	 	(ii)	references to, or to a provision of, any law include any amendment, extension, re-enactment or replacement, whether made before the date of this Agreement or otherwise; and



  
 24 









	 	(iii)	words denoting the singular number shall include the plural and vice versa. 

  

	(b)	Clauses 1.1 to 1.4 and paragraph (a) of this Clause 1.5 apply unless the contrary intention appears. 

  

	(c)	References in Clause 1.1 to a document being in the form of a particular Appendix include references to that form with any modifications to that form which the Facility Agent (with the authorisation of the Majority
Lenders in the case of substantial modifications) approves or reasonably requires. 

  

	(d)	The clause headings shall not affect the interpretation of this Agreement. 

  

	(e)	A Potential Event of Default is “continuing” if it has not been remedied or waived and an Event of Default is “continuing” if it has not been waived. 


 

	2	FACILITY 

  

	2.1	Amount of facility 

 Subject to the terms of this Agreement, the Lenders shall make
available to the Borrowers, or, following a Dropdown, to the Borrower that is a member of the relevant Group, a post- delivery secured term loan facility in two Advances which shall each be available for drawing in one advance to finance or
refinance the delivery instalment or as the case refinance certain pre-delivery instalments paid in connection with the acquisition of that Ship, Provided that Advances A and B shall be in an aggregate
amount not exceeding $70,200,000. 
  

	2.2	Lenders’ participations in an Advance 

 Subject to the other provisions of this
Agreement, each Lender shall participate in an Advance in the proportion which, as at the Drawdown Date applicable to that Advance, its Commitment bears to the Total Commitments. 

 

	2.3	Purpose of Loan 

 Each Borrower undertakes with each Creditor Party to use each Advance
only for the purpose stated in the preamble to this Agreement. 
  

	2.4	Monitoring 

 No Creditor Party is bound to monitor or verify the application of any
amount borrowed pursuant to this Agreement. 
  

	2.5	Designated Transactions under each Master Agreement 

 At any time during the Security
Period, any Borrower may request the Swap Bank or any other Lender to conclude Designated Transactions for the purpose of hedging exposure to interest rate fluctuations in the context of their interest payment obligations under this Agreement
provided that the Lenders who were Swap Bank on the date of this Agreement shall have the right of first refusal to conclude such Designated Transactions. The entry by the Swap Bank into each Master Agreement does not commit the Swap Bank to
conclude Designated Transactions, or even to offer terms for doing so, but does provide a contractual framework within which Designated Transactions may be concluded and secured, assuming that the Swap Bank is willing to conclude any Designated
Transaction at the relevant time and that, if that is the case, mutually acceptable terms can be agreed at the relevant time. The Swap Bank may, with the prior consent of the Borrower which is a party to the relevant Master Agreement (such consent
not to be unreasonably withheld and/or delayed), syndicate its exposure under that Master Agreement at any time. 

  
 25 









	3	POSITION OF THE LENDERS, THE SWAP BANK AND THE MAJORITY LENDERS 

  

	3.1	Interests of Lenders and Swap Bank several 

 The rights of the Lenders and the Swap Bank
under this Agreement and each Master Agreement are several; accordingly: 
  

	(a)	each Lender shall be entitled to sue for any amount which has become due and payable by the Borrowers to it under this Agreement; and 


 

	(b)	the Swap Bank shall be entitled to sue for any amount which has become due and payable by the Borrowers to it under a Master Agreement to which it is a party, 


without joining the Facility Agent, the Security Trustee, any other Lender or the Swap Bank as additional parties in the proceedings. 

 

	3.2	Proceedings by individual Lender or the Swap Bank 

 However, without the prior consent of
the Majority Lenders, no Lender nor the Swap Bank may bring proceedings in respect of: 
  

	(a)	any other liability or obligation of a Borrower or a Security Party under or connected with a Finance Document or a Master Agreement; or 


 

	(b)	any misrepresentation or breach of warranty by a Borrower or a Security Party in or connected with a Finance Document or the Master Agreement to which that Borrower is a party without the prior consent of the Majority
Lenders. 

  

	3.3	Obligations several 

 The obligations of the Lenders under this Agreement and of the Swap
Bank under the Master Agreements are several; and a failure of a Lender to perform its obligations under this Agreement or a failure of the Swap Bank to perform its obligations under a Master Agreement shall not result in: 

 

	(a)	the obligations of the other Lenders or the Swap Bank being increased; nor 

  

	(b)	the Borrowers, any Security Party or any other Creditor Party being discharged (in whole or in part) from its obligations under any Finance Document, 


and in no circumstances shall a Lender or the Swap Bank have any responsibility for a failure of another Lender or the Swap Bank to perform its
obligations under this Agreement or a Master Agreement. 
  

	3.4	Parties bound by certain actions of Majority Lenders 

 Every Lender, the Swap Bank,
Borrower and Security Party shall be bound by: 
  

	(a)	any determination made, or action taken, by the Majority Lenders under any provision of a Finance Document; 

  

	(b)	any instruction or authorisation given by the Majority Lenders to the Facility Agent or the Security Trustee under or in connection with any Finance Document; 


 

	(c)	any action taken (or in good faith purportedly taken) by the Facility Agent or the Security Trustee in accordance with such an instruction or authorisation. 


  
 26 









	3.5	Reliance on action of Facility Agent 

 However, the Borrowers and each Security Party:

  

	(a)	shall be entitled to assume that the Majority Lenders have duly given any instruction or authorisation which, under any provision of a Finance Document, is required in relation to any action which the Facility Agent has
taken or is about to take; and 

  

	(b)	shall not be entitled to require any evidence that such an instruction or authorisation has been given. 

  

	3.6	Construction 

 In Clauses 3.4 and 3.5 references to action taken include (without
limitation) the granting of any waiver or consent, an approval of any document and an agreement to any matter. 
  

	4	DRAWDOWN AND DROPDOWN OPTION 

  

	4.1	Request for Advance 

 Subject to the following conditions, the Borrowers may request an
Advance to be made by ensuring that the Facility Agent receives a completed Drawdown Notice not later than 11.00 a.m. (Paris time) 3 Business Days prior to the intended Drawdown Date. 

 

	4.2	Availability 

 The conditions referred to in Clause 4.1 are that: 

 

	(a)	a Drawdown Date has to be a Business Day during the Availability Period; 

  

	(b)	each of Advances shall be available for drawing in one advance and will be used to part finance or as the case may be part refinance part of the acquisition cost of each Ship; and 


 

	(c)	if any part of the aggregated Lenders’ Ship Commitments relative to a Ship has not been borrowed before the end of the Availability Period applying to that Ship’s Advance, those Ship Commitments shall on that
date be permanently cancelled in equal shares by an amount equal to such undrawn amount and the Total Commitments shall be cancelled by the same amount. 

  

	4.3	Purpose of Advances 

 Each Borrower undertakes with each Creditor Party to use each
Advance only for the purposes stated in the recitals to this Agreement. 
  

	4.4	Notification to Lenders of receipt of a Drawdown Notice 

 The Facility Agent shall
promptly notify the Lenders that it has received a Drawdown Notice and the Facility Agent shall inform each Lender of: 
  

	(a)	the amount of each Advance and the Drawdown Date; 

  

	(b)	the amount of that Lender’s participation in that Advance; and 

  

	(c)	the duration of the first Interest Period. 


  
 27 









	4.5	Drawdown Notice irrevocable 

 A Drawdown Notice must be duly signed by a director or
other authorised person of the Borrowers; and once served, a Drawdown Notice cannot be revoked without the prior consent of the Facility Agent, acting on the authority of the Majority Lenders. 

 

	4.6	Lenders to make available Contributions 

 Subject to the provisions of this Agreement,
each Lender shall, on and with value on each Drawdown Date, make available to the Facility Agent for the account of the Borrowers, or, following a Dropdown, to the Borrowers that are members of the relevant Group, the amount due from that Lender on
that Drawdown Date under Clause 2.1. 
  

	4.7	Disbursement of Advance 

 Subject to the provisions of this Agreement, the Facility Agent
shall on each Drawdown Date pay to the relevant Borrowers the relevant Advance for the purposes specified in the Drawdown Notice relative to such Advance the amounts which the Facility Agent receives from the Lenders under Clause 4.6; and that
payment to such Borrowers shall be made: 
  

	(a)	to such account which the Borrowers specify in the Drawdown Notice; and 

  

	(b)	in the like funds as the Facility Agent received the payments from the Lenders. 

  

	4.8	Disbursement of Advance to third party 

 The payment by the Facility Agent under Clause
4.7 to the Builder or any other third party shall constitute the making of that Advance and the Borrowers, or, following a Dropdown, the Borrowers that are members of the relevant Group, shall thereupon become indebted, as principal and direct
obligors, to each Lender in an amount equal to that Lender’s Contribution. 
  

	4.9	Dropdown Option 

 The Guarantor may elect to transfer (the “Option”)
ownership of the entire share capital of either Borrower so that such Borrower becomes an indirect subsidiary of the Substitute Guarantor and a direct subsidiary of the Intermediate Shareholder (the “Dropdown”) subject to: 

 

	(a)	the Borrowers serving a written notice on the Facility Agent of the Guarantor’s intention to exercise the Option not later than 5 Business Days prior to the date of the Dropdown; 


 

	(b)	not later than the Dropdown Date, the Facility Agent receives the documents described in Part C of Schedule 3 in a form and substance satisfactory to the Facility Agent and its lawyers; 


 

	(c)	no Event of Default or Potential Event of Default has occurred and is continuing or would result from the Dropdown; 

  

	(d)	there is no Material Adverse Change in existence; and 

  

	(e)	the parties to this Agreement entering into such documentation amending and supplementing this Agreement and any other Finance Documents as may be required to be in a form reasonably acceptable to the Facility Agent by
no later than the relevant Dropdown Date and any other document as may be required by the Facility Agent to effect the same in a manner acceptable to the Facility Agent. 


  
 28 









	5	INTEREST 

  

	5.1	Payment of normal interest 

 Subject to the provisions of this Agreement, interest on
each Advance or Advance(s) in respect of each Interest Period shall be paid by the Borrowers (or, subject to Clause 29.2, each Affected Borrower), in arrears on the last day of that Interest Period. 

 

	5.2	Normal rate of interest 

 Subject to the provisions of this Agreement, the rate of
interest on each Advance in respect of an Interest Period shall be the aggregate of: 
  

	(a)	the Margin; and 

  

	(b)	LIBOR. 

  

	5.3	Payment of accrued interest 

 In the case of an Interest Period longer than 3 months,
accrued interest shall be paid every 3 months during that Interest Period and on the last day of that Interest Period. 
  

	5.4	Notification of Interest Periods and rates of normal interest 

 The Facility Agent shall
notify the Borrowers and each Lender of: 
  

	(a)	each rate of interest; and 

  

	(b)	the duration of each Interest Period, 

 as soon as reasonably practicable after each is
determined. 
  

	5.5	Unavailability of Screen Rate 

  

	(a)	Interpolated Screen Rate: If no Screen Rate is available for LIBOR for the Interest Period of the Loan or any part of the Loan, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in
length to the Interest Period of the Loan or that part of the Loan. 

  

	(b)	Reference Bank Rate: If no Screen Rate is available for: 

  

	 	(i)	Dollars; or 

  

	 	(ii)	the Interest Period of the Loan or any part of the Loan and it is not possible to calculate the Interpolated Screen Rate, 


the applicable LIBOR shall be the Reference Bank Rate as of on or about noon on the Quotation Date and for a period equal in length to the
Interest Period of the Loan or that part of the Loan. 
  

	(c)	Cost of funds: If paragraph (b) above applies but no Reference Bank Rate is available for Dollars or the relevant Interest Period, there shall be no LIBOR for the Loan or that part thereof and Clause 5.8
shall apply to the Loan or that part thereof for that Interest Period. 

  

	5.6	Calculation of Reference Bank Rate 

  

	(a)	Subject to paragraph (b) below, if LIBOR is to be determined on the basis of a Reference Bank Rate but a Reference Bank does not supply a quotation by 11:00 am London time on the Quotation Date, the Reference Bank
Rate shall be calculated on the basis of the quotations of the remaining Reference Bank(s). 


  
 29 









	(b)	If at or about noon on the Quotation Date none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period. 


 

	5.7	Market disruption 

 If before close of business in London on the Quotation Date for the
relevant Interest Period the Facility Agent receives notification from a Lender or Lenders (whose participations in the Loan or the relevant part of the Loan exceed 35 per cent. of the Loan or the relevant part of the Loan as appropriate) (the
“Relevant Lender”) that the cost to it of funding its participation in the Loan or that part of the Loan from the wholesale market for dollars would be in excess of LIBOR then Clause 5.8 shall apply to the Loan or that part of the
Loan (as applicable) for the relevant Interest Period. 
  

	5.8	Cost of funds 

  

	(a)	If this Clause 5.8 applies, the rate of interest on the Loan or the relevant part of the Loan for the relevant Interest Period shall be the percentage rate per annum which is the sum of: 


 

	 	(i)	the Margin; and 

  

	 	(ii)	the rate notified to the Facility Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period to be that which expresses as a percentage rate per
annum the cost to the relevant Lender of funding its Contribution from whatever source it may reasonably select. 

  

	(b)	If this Clause 5.8 applies and the Facility Agent or the Borrower so requires, the Facility Agent and the Borrower shall enter into negotiations (for a period of not more than 30 days) with a view to agreeing a
substitute basis for determining the rate of interest or (as the case may be) an alternative basis for funding. 

  

	(c)	Subject to Clause 27.4, any substitute or alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all Parties. 


 

	(d)	If this Clause 5.8 applies but any Lender does not supply a quotation by the time specified in sub-paragraph (ii) of paragraph (a) above the rate of interest shall be
calculated on the basis of the quotations of the remaining Lenders. 

  

	5.9	Suspension of drawdown 

 If Clauses 5.5 or 5.7 apply before any Advance(s) is made the
Lenders’ obligations to make the Advance or Advances shall be suspended while the circumstances referred to in the Facility Agent’s notice continue. 
  

	6	INTEREST PERIODS 

  

	6.1	Commencement of Interest Periods 

 The first Interest Period applicable to an Advance
shall commence on the relevant Drawdown Date and each subsequent Interest Period shall commence on the expiry of the preceding Interest Period. 
  

	6.2	Duration of normal Interest Periods 

 Subject to Clauses 6.3 and 6.4, each Interest
Period in respect of each Advance shall be: 

  
 30 









	(a)	3 or 6 months as notified by the Borrowers to the Facility Agent not later than 11.00 a.m. (London time) 3 Business Days before the commencement of the Interest Period; 


 

	(b)	in the case of the first Interest Period applicable to the second Advance, a period ending on the last day of the then current Interest Period applicable to the first Advance, whereupon all of the Advances shall be
consolidated and treated as a single advance; 

  

	(c)	3 months, if the Borrowers fail to notify the Facility Agent by the time specified in paragraph (a) above; or 

  

	(d)	such other period as the Borrowers may request from the Facility Agent, which may be agreed by the Lenders in their sole discretion. 


 

	6.3	Duration of Interest Periods for Instalments 

 In respect of an amount due to be repaid
under Clause 8 on a particular Repayment Date, an Interest Period in relation to the relevant Advance shall end on that Repayment Date. 
  

	6.4	Non-availability of matching deposits for Interest Period selected 


If, after the Borrowers have selected and the Lenders have agreed an Interest Period longer than 3 months, any Lender notifies the Facility
Agent by 11.00 a.m. (Paris time) on the second Business Day before the commencement of the Interest Period that it is not satisfied that deposits in Dollars for a period equal to the Interest Period will be available to it in the London interbank
market when the Interest Period commences, the Interest Period shall be of 3 months. 
  

	7	DEFAULT INTEREST 

  

	7.1	Payment of default interest on overdue amounts 

 The Borrowers shall pay interest in
accordance with the following provisions of this Clause 7 on any amount payable by the Borrowers (or any of them) under any Finance Document which the Facility Agent, the Security Trustee or the other designated payee does not receive on or before
the relevant date, that is: 
  

	(a)	the date on which the Finance Documents provide that such amount is due for payment; or 

  

	(b)	if a Finance Document provides that such amount is payable on demand, the date on which the demand is served; or 

  

	(c)	if such amount has become immediately due and payable under Clause 19.4, the date on which it became immediately due and payable. 

  

	7.2	Default rate of interest 

 Interest shall accrue on an overdue amount from (and
including) the relevant date until the date of actual payment (as well after as before judgment) at the rate per annum determined by the Facility Agent to be 2 per cent. above: 

 

	(a)	in the case of an overdue amount of principal, the higher of the rates set out at paragraphs (a) and (b) of Clause 7.3; or 

  

	(b)	in the case of any other overdue amount, the rate set out at paragraph (b) of Clause 7.3. 

  

	7.3	Calculation of default rate of interest 

 The rates referred to in Clause 7.2 are: 

  
 31 









	(a)	the rate applicable to the overdue principal amount immediately prior to the relevant date (but only for any unexpired part of any then current Interest Period); 


 

	(b)	the Margin plus, in respect of successive periods of any duration up to 3 months which the Facility Agent may select from time to time: 


 

	 	(i)	LIBOR; or 

  

	 	(ii)	if the Facility Agent determines that Dollar deposits for any such period are not being made available to a Lender or (as the case may be) Lenders by leading banks in the London interbank market in the ordinary course
of business, the average rate from time to time determined by the Facility Agent by reference to the cost of funds to all Lenders for such period notified by the Lenders to the Facility Agent by no later than 1 Business Day after the Facility Agent
makes such a determination. 

  

	7.4	Notification of interest periods and default rates 

 The Facility Agent shall promptly
notify the Lenders and the Borrowers of each interest rate determined by the Facility Agent under Clause 7.3 and of each period selected by the Facility Agent for the purposes of paragraph (b) of that Clause; but this shall not be taken to
imply that the Borrowers are liable to pay such interest only with effect from the date of the Facility Agent’s notification. 
  

	7.5	Payment of accrued default interest 

 Subject to the other provisions of this Agreement,
any interest due under this Clause shall be paid on the last day of the period by reference to which it was determined; and the payment shall be made to the Facility Agent for the account of the Creditor Party to which the overdue amount is due.

  

	7.6	Compounding of default interest 

 Any such interest which is not paid at the end of the
period by reference to which it was determined shall thereupon be compounded. 
  

	7.7	Application to Master Agreements 

 For the avoidance of doubt, this Clause 7 does not
apply to any amount payable under a Master Agreement in respect of any continuing Designated Transaction as to which section 2(e) (Default Interest; Other Amounts) of a Master Agreement shall apply. 

 

	8	REPAYMENT AND PREPAYMENT 

  

	8.1	Repayment Instalments 

 The Borrowers shall repay each Advance, by: 

 

	(a)	14 equal consecutive semi-annual repayments instalments (each an “Instalment” and together, the “Instalments”), each in an amount of $1,170,000; and 


 

	(b)	a balloon instalment (in respect of each Advance, a “Balloon Instalment”, and together, the “Balloon Instalments”) in the amount of $18,720,000 


provided that in case the maximum amount of each Advance is not drawndown, the Instalments and Balloon Instalments shall be reduced pro
rata. 

  
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	8.2	Repayment Dates 

 The first Instalment in respect of each Advance shall be repaid on the
date falling 6 months after the Drawdown Date of the Advance and each subsequent Instalment shall be repaid at 6-monthly intervals thereafter and the last Instalment shall be repaid on the Final Maturity Date
in respect of the Advance together with the Balloon Instalment. 
  

	8.3	Final Repayment Date 

 On the final Repayment Date, the Borrowers shall additionally pay
to the Facility Agent for the account of the Creditor Parties all other sums then accrued or owing under any Finance Document. 
  

	8.4	Optional facility cancellation 

 The Borrowers shall be entitled, upon giving to the
Facility Agent not less than 3 Business Days prior written notice (which notice shall be irrevocable), to cancel, in whole or in part, and, if in part, by an amount that reduces the undrawn balance of the Total Commitments in a minimum amount of
$1,000,000 or an integral multiple thereof. Upon such cancellation taking effect on expiry of such notice the several obligations of the Lenders to make their respective Commitments available in relation to the portion of the Total Commitments to
which such notice relates shall terminate and the commitment fee referred to in Clause 20.1) on such portion shall cease to accrue. 
  

	8.5	Voluntary prepayment 

 Subject to the following conditions, the Borrowers may prepay the
whole or any part of the Loan on the last day of an Interest Period in respect thereof. 
  

	8.6	Conditions for voluntary prepayment 

 The conditions referred to in Clause 8.5 are that:

  

	(a)	a partial prepayment shall be in an amount of $1,000,000 or an integral multiple thereof; 

  

	(b)	the Facility Agent has received from the Borrowers at least 3 Business Days’ prior written notice specifying: 

  

	 	(i)	the amount to be prepaid and the date on which the prepayment is to be made; and 

  

	 	(ii)	whether such prepayment will be applied against an Advance, in which case the Borrowers will specify the Advance against which that prepayment should be applied. A failure by the Borrowers to make such a designation
shall result in the prepayment being applied against each Advance in accordance with Clause 8.11(a); and 

  

	(c)	the Borrowers have provided evidence satisfactory to the Facility Agent that any consent required by the Borrowers or any Security Party in connection with the prepayment has been obtained and remains in force, and that
any requirement relevant to this Agreement which affects the Borrowers or any Security Party has been complied with. 

  

	8.7	Effect of notice of prepayment 

 A prepayment notice may not be withdrawn or amended
without the consent of the Facility Agent, given with the authority of the Majority Lenders, and the amount specified in the prepayment notice shall become due and payable by the Borrowers on the date for prepayment specified in the prepayment
notice. 

  
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	8.8	Notification of notice of prepayment 

 The Facility Agent shall notify the Lenders
promptly upon receiving a prepayment notice, and shall provide any Lender which so requests with a copy of any document delivered by the Borrowers under Clause 8.6(c). 
  

	8.9	Mandatory prepayment 

 The Borrowers (or, subject to Clause 29.2, each Affected Borrower)
shall be obliged to prepay the Relevant Amount: 
  

	(a)	in the case of a sale at any time after the Delivery Date relative to that Ship, on or before the date on which the sale is completed by delivery of that Ship to the buyer; or 


 

	(b)	in the case of a Total Loss, on the earlier of the date falling 180 days after the Total Loss Date and the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss;


  

	(c)	if any of the following occurs, unless otherwise instructed by the Facility Agent (acting on the instructions of the Lenders): 

  

	 	(i)	without their prior consent and other than as the result of a Dropdown, a change has occurred after the date of this Agreement in the legal ownership of the Intermediate Shareholder or in the legal and beneficial
ownership of any of the shares in any Borrower or the ultimate beneficial ownership of the Guarantor or any of them, in the control of the voting rights attaching to any of those shares unless such change results in the ultimate beneficial owners
(or their immediate family members including their descendants) of any Borrower, the Intermediate Shareholder or the Guarantor (the identity of which has been disclosed to the Facility Agent in writing on the date of this Agreement) owning more
shares in the capital of the Guarantor than any other person (save for any passive institutional investor)) and holding executive power in any Borrower, the Intermediate Shareholder or the Guarantor provided that the above shall only apply to
the Intermediate Shareholder following a Dropdown; and/or 

  

	 	(ii)	the ultimate beneficial owners (or their immediate family members including their descendants) of the largest number of common units in the Substitute Guarantor as at the date of this Agreement, whose identities have
been disclosed to the Facility Agent in writing on the date of this Agreement, ceases to own more common units in the Substitute Guarantor than any other person (save for any passive institutional investor); and/or 


 

	 	(iii)	any person or group of persons acting in concert gains directly or indirectly Control of the Guarantor or the Substitute Guarantor, and for the purpose this paragraph “acting in concert”
means a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co-operate, through the acquisition (directly or indirectly) of shares in the Guarantor or the
Substitute Guarantor, by any of them, either directly or indirectly, to obtain or consolidate Control of the Guarantor or the Substitute Guarantor; and/or 

  

	 	(iv)	following a Dropdown, (A) Capital GP LLC has ceased to be the Substitute Guarantor’s general partner or (B) the Guarantor has ceased to hold legal ownership of the common units of Capital GP LLC; and


  

	 	(v)	following a Dropdown, the Substitute Guarantor ceases to wholly own or control any of the Affected Borrowers. 


In this Clause 8.9, “Relevant Amount” means: 

  
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	 	(a)	in the cases of sub-paragraphs (a) and (b), an amount equal to the higher of (A) the outstanding amount of the Advance which has been used in part-financing the Ship
which has become subject to any of the events referred to in such sub-paragraphs and (B) an amount, which after giving credit to the prepayment required to be made pursuant to this Clause 8.9, results in
the applicable Security Cover Ratio being equal to the minimum Security Cover Ratio; and 

  

	 	(b)	in the case of Clause 8.9(c), the Loan; and 

  

	 	(c)	in the case of Clause 8.9(c)(i), the Advance owing by any Affected Borrower. 

  

	8.10	Amounts payable on prepayment 

 A prepayment shall be made together with accrued interest
(and any other amount payable under Clause 21 below or otherwise) in respect of the amount prepaid and, if the prepayment is not made on the last day of an Interest Period together with any sums payable under Clause 21.1(b) but without premium or
penalty. 
  

	8.11	Application of partial prepayment 

 Each partial prepayment shall be applied: 

 

	(a)	if made pursuant to Clause 8.5 pro rata between the then outstanding Advances and thereafter in respect of each Advance, pro rata against the Instalments in respect of that Advance which are at the time being
outstanding and the relevant Balloon Instalment Provided that the Borrowers may, at their option, request that a prepayment made in accordance with Clause 8.5 be applied against one Advance only in which case such prepayment shall be applied
pro rata against the Instalments in respect of that Advance which are at the time being outstanding and the relevant Balloon Instalment or in any other manner of application requested by the Borrowers and agreed by the Lenders (in the Lenders’
absolute discretion); 

  

	(b)	if made pursuant to Clauses 8.9 or 15.2, in the cases of sub-paragraphs (a), (b) and (c), first against the Balloon Instalment in respect of the Advance related to the Ship being
sold or which has become a Total Loss, secondly towards reduction of the outstanding Instalments in respect of that Advance in inverse order of maturity, thirdly against the then outstanding Balloon Instalment in respect of the remaining Advance in
inverse order of maturity and fourthly towards reduction of the Instalments in respect of the remaining advances; and 

  

	(c)	if made pursuant to any other clause of this Agreement, pro-rata between the Advances, first against reduction of the Balloon Instalments of the Advances and secondly against the
outstanding Instalments in respect of such Advances. 

  

	8.12	No reborrowing 

 No amount prepaid or cancelled may be reborrowed. 

 

	8.13	Unwinding of Designated Transactions 

 On or prior to any repayment or prepayment of the
Loan under this Clause 8 or any other provision of this Agreement, the Borrowers shall wholly or partially reverse, offset, unwind or otherwise terminate one or more of the continuing Designated Transactions to the extent necessary to ensure that
the notional principal amount of the continuing Designated Transactions thereafter remaining does not and will not in the future (taking into account the scheduled amortisation) exceed the amount of the Loan as reducing from time to time thereafter
pursuant to Clause 8.1. 

  
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	8.14	Prepayment of swap benefit 

 If a Designated Transaction is terminated in circumstances
where the Swap Bank would be obliged to pay an amount to any Borrower under a Master Agreement, each Borrower hereby agrees that such payment shall be applied in prepayment of the Loan in accordance with Clause 8.11 and authorises the Swap Bank to
pay such amount to the Facility Agent for such purpose. 
  

	8.15	Right of cancellation in relation to a Defaulting Lender 

  

	(a)	If any Lender becomes a Defaulting Lender, the Borrowers may, at any time whilst the Lender continues to be a Defaulting Lender, give the Facility Agent 5 Business Days’ notice of cancellation of the undrawn
Commitment of that Lender; 

  

	(b)	on the notice referred to in paragraph (a) above becoming effective, the undrawn Commitment of the Defaulting Lender shall immediately be reduced to zero; and 


 

	(c)	the Facility Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above, notify all the Lenders. 


 

	8.16	Right of repayment and cancellation in relation to a single Lender 

  

	(a)	If: 

  

	 	(i)	any sum payable to any Lender by a Borrower is required to be increased under paragraph (c) of Clause 22.2 or under that clause as incorporated by reference or in full in any other Finance Document; or


  

	 	(ii)	any Lender claims indemnification from a Borrower under Clause 22.3 or Clause 24, 

 the
Borrowers may whilst in the case of sub-paragraphs (i) and (ii) above the circumstance giving rise to the requirement for that increase or indemnification continues, give the Facility Agent notice of
cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Loan. 
  

	(b)	On receipt of a notice of cancellation referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero. 


 

	(c)	On the last day of each Interest Period which ends after the Borrowers have given notice of cancellation under paragraph (a) above in relation to a Lender (or, if earlier, the date specified by the Borrowers in
that notice), the Borrowers shall repay that Lender’s participation in the Loan. 

  

	(d)	Any partial prepayment under this Clause 8.16 shall reduce pro rata the amount of each Instalment falling after that prepayment by the amount prepaid. 


 

	9	CONDITIONS PRECEDENT 

  

	9.1	Documents, fees and no default 

 Each Lender’s obligation to contribute to an
Advance is subject to the following conditions precedent: 
  

	(a)	that on or before the date of this Agreement, the Facility Agent receives: 

  

	 	(i)	the documents described in Part A of Schedule 3 in a form and substance satisfactory to the Facility Agent and its lawyers; and 


  
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	 	(ii)	payment in full of any expenses payable pursuant to Clause 20.2; 

  

	(b)	that, on the Drawdown Date in respect of each Advance, the Facility Agent receives: 

  

	 	(i)	the documents described in Part B of Schedule 3 in form and substance satisfactory to it and its lawyers; and 

  

	 	(ii)	all accrued commitment fee due and payable pursuant to Clause 20.1; and 

  

	 	(iii)	payment in full of any expenses payable pursuant to Clause 20.2 which are due and payable on that Drawdown Date; 

  

	(c)	that both at the date of each Drawdown Notice and at each Drawdown Date: 

  

	 	(i)	no Event of Default or Potential Event of Default has occurred and is continuing or would result from the borrowing of the relevant Advance; and 


 

	 	(ii)	the representations and warranties in Clause 10 and those of any Borrower or any Security Party which are set out in the other Finance Documents would be true and not misleading if repeated on each of those dates with
reference to the circumstances then existing; and 

  

	 	(iii)	none of the circumstances contemplated by Clause 5.6 has occurred and is continuing; and 

  

	 	(iv)	there is no Material Adverse Change in existence; and 

  

	 	(v)	the Facility Agent receives any fees referred to in Clause 20.1 which are due and payable at that time; 

  

	(d)	that, if the applicable Security Cover Ratio were applied immediately following the making of the relevant Advance, the Borrowers would not be obliged to provide additional security or prepay part of the Loan under that
Clause; and 

  

	(e)	that the Facility Agent has received, and found to be acceptable to it, any further opinions, consents, agreements and documents in connection with the Finance Documents which the Facility Agent may, with the
authorisation of the Majority Lenders, request by notice to the Borrowers prior to the relevant Drawdown Date. 

  

	9.2	Waiver of conditions precedent 

 If the Majority Lenders, at their discretion, permit an
Advance to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied, the Facility Agent will, acting on the instructions of the Majority Lenders, issue a conditions precedent waiver letter and the Borrowers shall ensure
that those conditions are satisfied within 5 Business Days of the date of such letter (or such longer period as the Facility Agent may, with the authorisation of the Majority Lenders, specify). 

 

	10	REPRESENTATIONS AND WARRANTIES 

  

	10.1	General 

 Each Borrower represents and warrants to each Creditor Party as follows. 

 

	10.2	Status 

 Each Corporation is a company duly incorporated, validly existing and in good
standing under the laws of the Republic of the Marshall Islands. 

  
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	10.3	Capital 

 Each Borrower has an authorised share capital divided into 100 registered
and/or bearer shares, each of no par value, all of which shares have been fully paid issued in registered form and the legal title and beneficial ownership of all shares is held free of any Security Interests (except for Permitted Security
Interests) or any other claim by the person or persons disclosed by the Borrowers to the Facility Agent in writing on or prior to the date of this Agreement. 
  

	10.4	Corporate power 

 Each Borrower has the corporate capacity, and has taken all corporate
action and obtained all consents necessary for it: 
  

	(a)	to enter into, and perform its obligations under, any Charterparty (including, without limitation, the applicable Tesoro Charter) to which it is or, as the case may be, is to become a party; 


 

	(b)	to execute the Finance Documents to which that Borrower is a party; and 

  

	(c)	to borrow under this Agreement, to enter into Designated Transactions under a Master Agreement and to make all the payments contemplated by, and to comply with, those Finance Documents to which that Borrower is a party.


  

	10.5	Consents in force 

 All the consents referred to in Clause 10.4 remain in force and
nothing has occurred which makes any of them liable to revocation. 
  

	10.6	Legal validity; effective Security Interests 

 The Finance Documents to which each
Borrower is a party, do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents): 
  

	(a)	constitute that Borrower’s legal, valid and binding obligations enforceable against that Borrower in accordance with their respective terms; and 


 

	(b)	create legal, valid and binding Security Interests enforceable in accordance with their respective terms over all the assets to which they, by their terms, relate, 


subject to any relevant insolvency laws affecting creditors’ rights generally. 

 

	10.7	No third party Security Interests 

 Without limiting the generality of Clause 10.6, at
the time of the execution and delivery of each Finance Document to which that Borrower is a party: 
  

	(a)	that Borrower will have the right to create all the Security Interests which that Finance Document purports to create; and 

  

	(b)	no third party will have any Security Interest (except for Permitted Security Interests) or any other interest, right or claim over, in or in relation to any asset to which any such Security Interest, by its terms,
relates. 


  
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	10.8	No conflicts 

 The execution by each Borrower of each Finance Document to which it is a
party, and the borrowing by that Borrower of the Loan, and its compliance with each Finance Document to which it is a party will not involve or lead to a contravention of: 
  

	(a)	any law or regulation; or 

  

	(b)	the constitutional documents of that Borrower; or 

  

	(c)	any contractual or other obligation or restriction which is binding on that Borrower or any of its assets, 


and will not have a Material Adverse Effect. 
  

	10.9	No withholding taxes 

 All payments which each Borrower is liable to make under the
Finance Documents may be made without deduction or withholding for or on account of any tax payable under any law of any Pertinent Jurisdiction. 
  

	10.10	No default 

 No Event of Default or Potential Event of Default has occurred and is
continuing. 
  

	10.11	Information 

 All information which has been provided in writing by or on behalf of each
Borrower or any Security Party to any Creditor Party in connection with any Finance Document satisfied the requirements of Clause 11.5; all audited and unaudited accounts which have been so provided satisfied the requirements of Clause 11.7; and
there has been no material adverse change in the financial position or state of affairs of any Borrower from that disclosed in the latest of those accounts which is likely to have a Material Adverse Effect. 

 

	10.12	No litigation 

 No legal or administrative action involving any Borrower or any Security
Party (including action relating to any alleged or actual breach of the ISM Code or the ISPC Code) has been commenced or taken or, to any Borrower’s knowledge, is likely to be commenced or taken which would, in either case, be likely to have a
Material Adverse Effect. 
  

	10.13	Validity and completeness of Underlying Documents 

 Each of the Underlying Documents
constitutes valid, binding and enforceable obligations of the parties thereto in accordance with its terms; and: 
  

	(a)	the copies of each Underlying Document delivered to the Facility Agent before the date of this Agreement is a true and complete copy thereof; and 


 

	(b)	no amendments or additions to any Underlying Document have been agreed nor has any of the parties thereto waived any of their respective rights thereunder 


Provided that these representations shall only be made in connection with each Tesoro Charter from the date of service of a Drawdown
Notice in respect of the Tesoro Charter relative to the Ship which is the subject of the Advance referred to in that Drawdown Notice. 

  
 39 









	10.14	No rebates etc. 

 There is no agreement or understanding to allow or pay any rebate,
premium, commission, discount or other benefit or payment (howsoever described) to any Borrower, any other member of a Group or any affiliate thereof (including, without limitation, the Substitute Guarantor or any subsidiary of the Substitute
Guarantor) in connection with the acquisition of any of the Ships other than any brokerage commissions disclosed to the Lenders in writing on or prior to the date of this Agreement. 

 

	10.15	Compliance with certain undertakings 

 At the date of this Agreement, each Borrower is in
compliance with Clauses 11.2, 11.4, 11.7 and 11.12. 
  

	10.16	Taxes paid 

 Each Borrower has paid all taxes applicable to, or imposed on or in relation
to that Borrower and its business. 
  

	10.17	ISM and ISPS Code compliance 

 All requirements of (i) the ISM Code as they relate
to the Approved Manager have been complied with and (ii) the ISM Code and the ISPS Code as they relate to each Borrower and each Ship will be complied with by no later than the actual Delivery Date relative thereto. 

 

	10.18	No Money laundering 

 It is acting for its own account in relation to the Loan and in
relation to the performance and the discharge of its obligations and liabilities under the Finance Documents and the transactions and other arrangements effected or contemplated by the Finance Documents to which a Security Party is a party, and the
foregoing will not involve or lead to contravention of any law, official requirement or other regulatory measure or procedure implemented to combat money laundering (as defined in Article 1 of the Directive (2001/97EC of the European Parliament and
of 4 December 2001) including, but not limited to Directive 2005/60 amending Council Directive 91/308). 
  

	10.19	No Immunity 

 Each Borrower is subject to suit and to commercial law and neither it nor
any of its properties have any right of immunity from suit, execution, attachment or other legal process in the Republic of the Marshall Islands. 
  

	10.20	Sanctions 

 No Borrower, no Security Party nor any of their Affiliates and no member of
the Group nor any of their joint ventures nor any of their respective directors, officers or agent or representatives or any other persons acting on any of their behalf: 
  

	(a)	has violated or is violating any applicable Sanctions; 

  

	(b)	is a Designated Person; 

  

	(c)	is using or will use, directly or indirectly, the proceeds of the Loan, or lend, contribute or otherwise make available such proceeds to any person, (i) to fund any activities or business of or with any person, or
in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions or is an UHRC, or (ii) in any other manner that would result in a violation of Sanctions by any person (including any person
participating in the Loan, whether as underwriter, advisor, investor, or otherwise). 


  
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	10.21	Corrupt Practices 

 It has observed and, to the best of its knowledge and belief, parties
acting on its behalf have observed in the course of acting for it, all applicable laws and regulations relating to bribery and corrupt practices. 
  

	10.22	Choice of law 

 The choice of the laws of England to govern the Loan Agreement and those
other Finance Documents which are expressed to be governed by the laws of England constitutes a valid choice of law and the submission by each Borrower thereunder to the non-exclusive jurisdiction of the
Courts of England is a valid submission and does not contravene the laws of the Marshall Islands and the laws of England will be applied by the Courts of the Marshall Islands if the Loan Agreement or those other Finance Documents or any claim
thereunder comes under their jurisdiction upon proof of the relevant provisions of the laws of England. 
  

	10.23	Repetition 

 The representations and warranties in this Clause 10 shall be deemed to be
repeated by each Borrower: 
  

	(a)	on the date of service of each Drawdown Notice; 

  

	(b)	on each Drawdown Date; and 

  

	(c)	with the exception of Clauses 10.9 and 10.12, on the first day of each Interest Period, 

 as if
made with reference to the facts and circumstances existing on each such day. 
  

	11	GENERAL UNDERTAKINGS 

  

	11.1	General 

 Each Borrower undertakes with each Creditor Party to comply with the following
provisions of this Clause 11 at all times during the Security Period except as the Facility Agent may, with the authorisation of the Majority Lenders, or, where specified, all Lenders, otherwise permit (which permission shall not be unreasonably
withheld or delayed in connection with Clause 11.11). 
  

	11.2	Title; negative pledge and pari passu ranking 

 Each Borrower will: 

 

	(a)	as from the Delivery Date of its Ship, hold the legal title to, and own the entire beneficial interest in its Ship free from all Security Interests and other interests and rights of every kind, except for those created
by the Finance Documents and the effect of assignments contained in the Finance Documents and except for Permitted Security Interests; 

  

	(b)	not create or permit to arise any Security Interest over any other asset, present or future other than in the normal course of its business of owning and operating of the Ship owned by it; and 


 

	(c)	procure that its liabilities under the Finance Documents to which it is a party do and will rank at least pari passu with all its other present and future unsecured liabilities, except for liabilities which are
mandatorily preferred by law. 


  
 41 









	11.3	No disposal of assets 

 No Borrower will transfer, lease or otherwise dispose of: 

 

	(a)	all or a substantial part of its assets, whether by one transaction or a number of transactions, whether related or not if such transfer, lease or disposal results or in the occurrence of an Event of Default; or


  

	(b)	any debt payable to it or any other right (present, future or contingent right) to receive a payment, including any right to damages or compensation, 


but paragraph (a) does not apply to any charter of a Ship as to which Clause 14.14 applies. 

 

	11.4	Information provided to be accurate 

 All financial and other information, including, but
not limited to factual information, exhibits and reports, which is provided in writing by or on behalf of a Borrower under or in connection with any Finance Document will be true and not misleading and will not omit any material fact or
consideration. 
  

	11.5	No other liabilities or obligations to be incurred 

 No Borrower will incur any liability
or obligation (including, without limitation, any Financial Indebtedness) except (a) liabilities and obligations under the Underlying Documents and the Finance Documents to which it is a party and (b) liabilities or obligations reasonably
incurred in the ordinary course of operating and chartering its Ship and, should the Lenders consent to the incurrence by a Borrower of any such obligations and/or liabilities (other than those referred to in paragraphs (a) and (b), then that
Borrower shall ensure that any such obligations and/or liabilities shall at all times be subordinated in priority to the obligations and liabilities of such Borrower under this Agreement and the other Finance Documents. 

 

	11.6	Creditor notices 

 Each Borrower will send to the Facility Agent, at the same time as
they are despatched, copies of all communications which are despatched to all of its creditors or to the whole or any class of them for any claim which exceeds, on an individual basis, $25,000. 

 

	11.7	Consents 

 Each Borrower will maintain in force and promptly obtain or renew, and will
promptly send certified copies to the Facility Agent of, all consents required: 
  

	(a)	for that Borrower to perform its obligations under any Finance Document and any Underlying Document to which that Borrower is party (in respect of the applicable Tesoro Charter, from the Delivery Date of its Ship);


  

	(b)	for the validity or enforceability of any Finance Document and any Underlying Document (in respect of the applicable Tesoro Charter, from the Delivery Date of its Ship) to which that Borrower is party; and


  

	(c)	after the Delivery Date of its Ship, for that Borrower to own and operate that Ship, 

 and that
Borrower will comply (or procure compliance as the case may be) with the terms of all such consents. 
  

	11.8	Maintenance of Security Interests 

 Each Borrower will: 

  
 42 









	(a)	at its own cost, do all that it reasonably can to ensure that any Finance Document validly creates the obligations and the Security Interests which it purports to create; and 


 

	(b)	without limiting the generality of paragraph (a) above, at its own cost, promptly register, file, record or enrol any Finance Document with any court or authority in all Pertinent Jurisdictions, pay any stamp,
registration or similar tax in all Pertinent Jurisdictions in respect of any Finance Document, give any notice or take any other step which, in the opinion of the Majority Lenders, is or has become necessary or desirable for any Finance Document to
be valid, enforceable or admissible in evidence or to ensure or protect the priority of any Security Interest which it creates. 

  

	11.9	Notification of litigation 

 Each Borrower will provide the Facility Agent with: 

 

	(a)	details of any legal or administrative action involving that Borrower, any Security Party, any Underlying Document to which it is a party, its Ship, its Earnings or its Insurances as soon as such action is instituted
unless it is clear that the legal or administrative action cannot be considered material in the context of any Finance Document. 

  

	(b)	promptly upon becoming aware of them, the details of any claim, action, suit, proceeding or investigation with respect to Sanctions against it, any of its direct or indirect owners, subsidiaries, any of their joint
ventures or any of their respective directors, officers, employees, agents or representatives. 

  

	11.10	No amendment to Master Agreements; Transactions 

 No Borrower will: 

 

	(a)	agree to any amendment or supplement to, or waive or fail to enforce, a Master Agreement or any of its provisions; or 

  

	(b)	enter into any Transaction pursuant to a Master Agreement except Designated Transactions. 

  

	11.11	No amendment to any Underlying Document (other than the Tesoro Charters) 

 No Borrower
will agree to any amendment or supplement to, or waive or fail to enforce, any Underlying Document (other than the Tesoro Charters) or any of its provisions without the prior written consent of the Lenders such consent not to be unreasonably
withheld or delayed. 
  

	11.12	Principal place of business 

 Each Borrower will maintain its place of business, and keep
its corporate documents and records, at the address stated at Clause 28.2(a) and that Borrower will not establish nor do anything as a result of which it would be deemed to have, a place of business in England or the United States of America. 

 

	11.13	Confirmation of no default 

 Each Borrower will, within 2 Business Days after service by
the Facility Agent of a written request, serve on the Facility Agent a notice which is signed by an officer of that Borrower and which: 
  

	(a)	states that no Event of Default has occurred; or 

  

	(b)	states that no Event of Default has occurred, except for a specified event or matter, of which all material details are given, 


  
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 the Facility Agent may serve requests under this Clause 11.13 from time to time but only if asked
to do so by a Lender or Lenders having Contributions exceeding 10 per cent. of the Loan or Commitments exceeding 10 per cent. of the Total Commitments; this Clause 11.13 does not affect that Borrower’s obligations under Clause 11.14.

  

	11.14	Notification of default 

 Each Borrower will notify the Facility Agent as soon as that
Borrower becomes aware of: 
  

	(a)	the occurrence of a Potential Event of Default and/or an Event of Default (and the steps, if any, being taken to remedy such Potential Event of Default and/or Event of Default); or 


 

	(b)	any matter which indicates that an Event of Default may have occurred, 

 and will thereafter
keep the Facility Agent fully up-to-date with all developments. 
  

	11.15	Provision of further information 

  

	(a)	Each Borrower will provide the Facility Agent with annual budgets in respect of operated expenses and accruals of the Ships which, in the case of accruals, are due and payable within 6 months. 


 

	(b)	Each Borrower will, as soon as practicable after receiving the request, provide the Facility Agent with any additional financial or other information relating: 


 

	 	(i)	to it, the Ship owned by it, its Insurances and its Earnings; or 

  

	 	(ii)	to any other matter relevant to, or to any provision of, a Finance Document, 

 which may be
requested by the Facility Agent, the Security Trustee or any Lender at any time. 
  

	11.16	General and administrative costs 

 Each Borrower shall ensure that the payment of all its
general and administrative costs in connection with the ownership and operation of the Ship owned by it (including, without limitation, the payment of the management fees pursuant to the Management Agreements) shall be fully subordinated to its
payment obligations under this Agreement and the other Finance Documents throughout the Security Period. 
  

	11.17	Provision of copies and translation of documents 

 Each Borrower will supply the Facility
Agent with a sufficient number of copies of the documents referred to above to provide one copy for each Creditor Party; and if the Facility Agent so requires in respect of any of those documents, the Borrowers will provide a certified English
translation prepared by a translator approved by the Facility Agent. 
  

	11.18	Hedging of interest rate risks 

 Each Borrower may from time to time enter into
Designated Transactions with the Swap Bank in order to hedge all or part of the interest rate risk under this Agreement. 
  

	11.19	“Know your customer” checks 

 If: 

 

	(a)	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement; 


  
 44 









	(b)	any change in the status of that Borrower or any Security Party after the date of this Agreement (including a situation where a shareholder’s share in a Borrower or any Security Party rises above 10% of the total
number of shares); or 

  

	(c)	a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer, 


obliges the Facility Agent or any Lender (or, in the case of paragraph (c), any prospective new Lender) to comply with “know your
customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrowers shall promptly upon the request of the Facility Agent or the Lender concerned supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or the Lender concerned (for itself or, in the case of the event described in paragraph (c), on behalf of any
prospective new Lender) in order for the Facility Agent, the Lender concerned or, in the case of the event described in paragraph (c), any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your
customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. 
  

	11.20	Sanctions 

  

	(a)	Each Borrower shall and shall procure that Security Party and each member of the Group and Security Party: 

  

	 	(i)	will comply in all respects with Sanctions; 

  

	 	(ii)	will not, directly or indirectly, use the proceeds of the Loan, or lend, contribute or otherwise make available such proceeds to any person, (i) to fund any activities or business of or with any person, or in any
country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions or is an UHRC, or (ii) in any other manner that would result in a violation of Sanctions by any person (including any person
participating in the Loan, whether as underwriter, advisor, investor, or otherwise); and 

  

	 	(iii)	shall not fund all or part of any payment under a Finance Document out of proceeds derived from business or transactions with a Designated Person or from any action which would be prohibited by Sanctions or would
otherwise cause any person to be in breach of Sanctions; 

  

	(b)	No Borrower nor any member of the Group shall be a Designated Person; 

  

	(c)	No shareholder (or shareholders acting in concert) owning 5% or more of the shares of the Borrower, and (y) no shareholder (or shareholders acting in concert) of any of the Borrower’s Subsidiaries owning 5% or
more of shares in such Subsidiary (other than the Borrower), is/are a Designated Person(s); 

  

	(d)	Neither the Borrower nor any member of the Group is a Designated Person or is deemed as such on the basis of ownership or control (as such terms are interpreted in the relevant regulations in respect of the Sanctions or
in any guidance in relation to such regulations) by a Designated Person; 

  

	(e)	A Designated Person has not been involved in the negotiation or execution of the Finance Documents on behalf of the Borrower nor in the performance by the Borrower of its obligations under this Agreement nor in the use
by the Borrower of the proceeds of the Loan; 


  
 45 









	(f)	A Designated Person does not own or control (as such terms are interpreted in the relevant regulations in respect of the Sanctions or in any guidance in relation to such regulations) the Borrower or any of its
Subsidiaries and, to the best of the Borrower’s knowledge after due and careful inquiry, has no legal or beneficial interest, whether directly or indirectly, in any shares of the Borrower or any of its Subsidiaries; and 


 

	(g)	A Designated Person is not the subject of Sanctions other than the Sanctions by the United States of America, including OFAC, the European Union, including its Member States and the United Nations. 


 

	11.21	Minimum Working Capital 

 Each Borrower shall maintain standing to the credit of its
Minimum Working Capital Account the aggregate of: 
  

	(a)	throughout the Security Period, a cash buffer representing the estimated cost of all regulatory surveys included in that Borrower’s budget prior to the fifth anniversary from the relevant Drawdown Date and
thereafter, the estimated cost of all regulatory surveys included in that Borrowers’ budget until the end of the Security Period; and 

  

	(b)	

  

	 	(i)	from the Drawdown Date until the date falling one day prior to the date falling on the second anniversary of the Drawdown Date of the relevant Ship’s Advance (the “Second Anniversary Date”) of the
relevant Ship’s Advance, $300,000; 

  

	 	(ii)	from the Second Anniversary Date until the date falling one day prior to the date falling on the fourth anniversary of the Drawdown Date of the relevant Ship’s Advance (the “Fourth Anniversary
Date”), $500,000; and 

  

	 	(iii)	after the Fourth Anniversary and until the end of the Security Period, $700,000. 

  

	12	CORPORATE UNDERTAKINGS 

  

	12.1	General 

 Each Borrower also undertakes with each Creditor Party to comply with the
following provisions of this Clause 12 at all times during the Security Period except as the Facility Agent may, with the authorisation of the Majority Lenders, otherwise permit or as otherwise provided below. 

 

	12.2	Maintenance of status 

 Each Borrower will maintain its separate existence as a company
and remain in good standing under the laws of the Marshall Islands. 
  

	12.3	Negative Undertakings 

  

	(a)	No Borrower will: 

  

	 	(i)	carry on any business other than the ownership, chartering and operation of its Ship; or 

  

	 	(ii)	effect any form of redemption, purchase or return of share capital; or 

  

	 	(iii)	pay any dividend or make any other form of distribution or: 

  

	 	(A)	unless at the relevant time: 


  
 46 









	 	(1)	it is in compliance with Clause 11.21; and 

  

	 	(2)	the applicable Security Cover Ratio which is required to be maintained under Clause 15.1 is maintained other than as a result of a reduction of such Security Cover Ratio being agreed between the Parties; or


  

	 	(B)	if an Event of Default has occurred and is continuing or would result from such payment or distribution; or 

  

	 	(iv)	provide any form of credit or financial assistance to: 

  

	 	(A)	a person who is directly or indirectly interested in any Borrower’s share or loan capital; or 

  

	 	(B)	any company in or with which such a person is directly or indirectly interested or connected, 


enter into any transaction with or involving such a person or company on terms which are, in any respect, less favourable to any Borrower than
those which it could obtain in a bargain made at arms’ length; 
  

	 	(v)	open or maintain any account with any bank or financial institution except accounts with the Creditor Parties for the purposes of the Finance Documents including, without limitation, its Operating Account;


  

	 	(vi)	issue, allot or grant any person a right to any shares in its capital or repurchase or reduce its issued share capital except to existing beneficial owners as already disclosed to the Majority Lenders;


  

	 	(vii)	acquire any shares or other securities other than US or UK Treasury bills and certificates of deposit issued by major North American or European banks, or enter into any transaction in a derivative excluding Designated
Transactions and any transactions made with any other Lender pursuant to Clause 2.5; 

  

	 	(viii)	enter into any form of amalgamation, merger or de-merger or any form of reconstruction or reorganisation; or 


 

	 	(ix)	acquire any vessel other than its Ship. 

  

	13	INSURANCE 

  

	13.1	General 

 Each Borrower undertakes with each Creditor Party to comply with the following
provisions of this Clause 13 at all times during the Security Period (as from the Delivery Date of the Ship owned by that Borrower and at all times thereafter) except as the Facility Agent may, with the authorisation of the Majority Lenders,
otherwise permit. 
  

	13.2	Maintenance of obligatory insurances 

 Each Borrower shall keep the Ship owned by it
insured at the expense of that Borrower against: 
  

	(a)	fire and usual marine risks (including hull and machinery and excess risks); and 

  

	(b)	war risks (including protection and indemnity war risks with a separate limit not less than hull value); 


  
 47 









	(c)	protection and indemnity risks (including, without limitation, pollution risks and protection and indemnity war risks in excess of the amount of war risks (hull) each in the highest amount available in the international
insurance market); and 

  

	(d)	any other risks against which the Facility Agent acting on the instructions of the Majority Lenders, having regard to practices, recommendations and other circumstances prevailing at the relevant time may from time to
time require by notice to that Borrower. 

  

	13.3	Terms of obligatory insurances 

 Each Borrower shall effect such insurances: 

 

	(a)	in Dollars; 

  

	(b)	in the case of fire and usual marine risks and war risks (including, blocking and trapping), on an agreed value basis in approved amounts but not in any event and at any time less than (i) the higher of
(i) the amount which when aggregated with the insured amounts for the other Ship which is then subject to a Mortgage is equal to 120 per cent. of the aggregate of (a) Loan and (b) the Swap Exposure as determined on the date on
which such insurances are effected or renewed, as the case may be and (ii) the Market Value of the Ship owned by that Borrower; 

  

	(c)	in the case of oil pollution liability risks, for an aggregate amount equal to the highest level of cover from time to time available under basic protection and indemnity club entry (with the international group of
protection and indemnity clubs) and the international marine insurance market (currently $1,000,000,000); 

  

	(d)	in relation to protection and indemnity risks in respect of the full value and tonnage of the Ship owned by that Borrower; 

  

	(e)	in relation to war risks insurance, extended to cover piracy and terrorism where piracy or, as the case may be, terrorism, are excluded under the fire and usual marine risks insurance; 


 

	(f)	on approved terms; and 

  

	(g)	through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations
which are members of the International Group of Protection and Indemnity Associations, and have a Standard & Poor’s rating of at least BBB or a comparable rating by any other rating agency reasonably acceptable to the Facility Agent
(acting with the authorisation of the Majority Lenders). 

  

	13.4	Further protections for the Creditor Parties 

 In addition to the terms set out in Clause
13.3, each Borrower shall procure that: 
  

	(a)	it and any and all third parties who are named assured or co-assured under any obligatory insurance shall assign their interest in any and all obligatory insurances and other
Insurances if so required by the Facility Agent; 

  

	(b)	whenever the Security Trustee requires, the obligatory insurances name (or be amended to name) the Security Trustee as additional named assured for its rights and interests, warranted no operational interest and with
full waiver of rights of subrogation against the Security Trustee, but without the Security Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such insurances; 


  
 48 









	(c)	the interest of the Security Trustee as assignee and as loss payee shall be duly endorsed on all slips, cover notes, policies, certificates of entry or other instruments of insurance in respect of the obligatory
insurances; 

  

	(d)	the obligatory insurances shall name the Security Trustee as sole loss payee with such directions for payment as the Security Trustee may specify; 


 

	(e)	the obligatory insurances shall provide that all payments by or on behalf of the insurers under the obligatory insurances to the Security Trustee shall be made without set-off,
counterclaim or deductions or condition whatsoever; 

  

	(f)	the obligatory insurances shall provide that the insurers shall waive, to the fullest extent permitted by English law, their entitlement (if any) (whether by statute, common law, equity, or otherwise) to be subrogated
to the rights and remedies of the Security Trustee in respect of any rights or interests (secured or not) held by or available to the Security Trustee in respect of the Secured Liabilities, until the Secured Liabilities shall have been fully repaid
and discharged, except that the insurers shall not be restricted by the terms of this paragraph (f) from making personal claims against persons (other than the Borrowers or any other Creditor Party) in circumstances where the insurers have
fully discharged their liabilities and obligations under the relevant obligatory insurances; 

  

	(g)	the obligatory insurances shall provide that such obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Security Trustee; 


 

	(h)	the obligatory insurances shall provide that the Security Trustee may make proof of loss if that Borrower fails to do so; and 

  

	(i)	the obligatory insurances shall provide that if any obligatory insurance is cancelled, or if any substantial change is made in the coverage which adversely affects the interest of the Security Trustee, or if any
obligatory insurance is allowed to lapse for non-payment of premium, such cancellation, charge or lapse shall not be effective with respect to the Security Trustee for 30 days (or 7 days in the case of war
risks) after receipt by the Security Trustee of prior written notice from the insurers of such cancellation, change or lapse. 

  

	13.5	Renewal of obligatory insurances 

 Each Borrower shall: 

 

	(a)	at least 21 days before the expiry of any obligatory insurance: 

  

	 	(i)	notify the Security Trustee of the brokers, underwriters, insurance companies and any protection and indemnity or war risks association through or with whom that Borrower proposes to renew that insurance and of the
proposed terms of renewal; and 

  

	 	(ii)	in case of any substantial change in insurance cover, obtain the Majority Lenders’ approval to the matters referred to in paragraph (i) above; 


 

	(b)	at least 14 days before the expiry of any obligatory insurance, renew that obligatory insurance in accordance with the Majority Lenders’ approval pursuant to paragraph (a); and 


 

	(c)	procure that the approved brokers and/or the war risks and protection and indemnity associations with which such a renewal is effected shall promptly after the renewal notify the Security Trustee in writing of the terms
and conditions of the renewal. 


  
 49 









	13.6	Copies of policies; letters of undertaking 

 Each Borrower shall ensure that all approved
brokers provide the Security Trustee with copies of all policies relating to the obligatory insurances which they effect or renew and of a letter or letters of undertaking in a form required by the Majority Lenders and including undertakings by the
approved brokers that: 
  

	(a)	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment complying with the provisions of Clause 13.4; 


 

	(b)	they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; 


 

	(c)	they will advise the Security Trustee immediately of any material change to the terms of the obligatory insurances; 

  

	(d)	they will notify the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from that Borrower or its agents and,
in the event of their receiving instructions to renew, they will promptly notify the Security Trustee of the terms of the instructions; and 

  

	(e)	they will not set off against any sum recoverable in respect of a claim relating to the Ship owned by that Borrower under such obligatory insurances any premiums or other amounts due to them or any other person whether
in respect of that Ship or otherwise, they waive any lien on the policies or, any sums received under them, which they might have in respect of such premiums or other amounts, and they will not cancel such obligatory insurances by reason of non-payment of such premiums or other amounts, and will arrange for a separate policy to be issued in respect of that Ship forthwith upon being so requested by the Security Trustee. 


 

	13.7	Copies of certificates of entry 

 Each Borrower shall ensure that any protection and
indemnity and/or war risks associations in which the Ship owned by that Borrower is entered provides the Security Trustee with: 
  

	(a)	a certified copy of the certificate of entry for that Ship; and 

  

	(b)	a letter or letters of undertaking in the Agreed Form; and 

  

	(c)	where required to be issued under the terms of insurance/indemnity provided by that Borrower’s protection and indemnity association, a certified copy of each United States of America voyage quarterly declaration
(or other similar document or documents) made by that Borrower in relation to its Ship in accordance with the requirements of such protections and indemnity association; and 


 

	(d)	a certified copy of each certificate of financial responsibility for pollution by oil or other Environmentally Sensitive Material issued by the relevant certifying authority in relation to that Ship. 


 

	13.8	Deposit of original policies 

 Each Borrower shall ensure that all policies relating to
obligatory insurances are deposited with the approved brokers through which the insurances are effected or renewed. 

  
 50 









	13.9	Payment of premiums 

 Each Borrower shall punctually pay all premiums or other sums
payable in respect of the obligatory insurances and produce all relevant receipts when so required by the Security Trustee. 
  

	13.10	Guarantees 

 Each Borrower shall ensure that any guarantees required by a protection and
indemnity or war risks association are promptly issued and remain in full force and effect. 
  

	13.11	Restrictions on employment 

 No Borrower shall employ the Ship owned by it, nor shall
permit her to be employed, outside the cover provided by any obligatory insurances. 
  

	13.12	Compliance with terms of insurances 

 No Borrower shall do or omit to do (or permits to
be done or not to be done) any act or thing which would or might render any obligatory insurance invalid, void, voidable or unenforceable or render any sum payable thereunder repayable in whole or in part; and in particular: 

 

	(a)	each Borrower shall take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without limiting the obligation contained in Clause 13.6(c)
above) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Security Trustee has not given its prior approval; 


 

	(b)	no Borrower shall make any changes relating to the classification or classification society or manager or operator of the Ship owned by it approved by the underwriters of the obligatory insurances; 


 

	(c)	each Borrower shall make (and promptly supply copies to the Facility Agent (upon its request)) of all quarterly or other voyage declarations which may be required by the protection and indemnity risks association in
which the Ship owned by it is entered to maintain cover for trading to the United States of America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990 or any other applicable legislation) and, if applicable, shall
procure that the Approved Manager complies with this requirement; and 

  

	(d)	no Borrower shall employ the Ship owned by it, nor shall allow it to be employed, otherwise than in conformity with the terms and conditions of the obligatory insurances, without first obtaining the consent of the
insurers and complying with any requirements (as to extra premium or otherwise) which the insurers specify. 

  

	13.13	Alteration to terms of insurances 

 No Borrower shall either make or agree to any
alteration to the terms of any obligatory insurance or waive any right relating to any obligatory insurance other than where the alternatives are mandatory to comply with international conventions or Sanctions without the prior written consent of
the Security Trustee. 
  

	13.14	Settlement of claims 

 No Borrower shall settle, compromise or abandon any claim under
any obligatory insurance for Total Loss or for a Major Casualty, and shall do all things necessary and provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any time become payable
in respect of the obligatory insurances. 

  
 51 









	13.15	Provision of copies of communications 

 Each Borrower shall provide the Security Trustee,
upon its request, copies of all written communications between that Borrower and: 
  

	(a)	the approved brokers; and 

  

	(b)	the approved protection and indemnity and/or war risks associations; and 

  

	(c)	the approved insurance companies and/or underwriters, which relate directly or indirectly to: 

  

	 	(i)	that Borrower’s obligations relating to the obligatory insurances including, without limitation, all requisite declarations and payments of additional premiums or calls; and 


 

	 	(ii)	any credit arrangements made between that Borrower and any of the persons referred to in paragraphs (a) or (b) above relating wholly or partly to the effecting or maintenance of the obligatory insurances.


  

	13.16	Provision of information and further undertakings 

 In addition, each Borrower shall
promptly provide the Security Trustee (or any persons which it may designate) with any information which the Security Trustee (or any such designated person) requests for the purpose of: 

 

	(a)	obtaining or preparing any report from an independent marine insurance broker as to the adequacy of the obligatory insurances effected or proposed to be effected; and/or 


 

	(b)	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.17 below or dealing with or considering any matters relating to any such insurances, 


and shall: 
  

	 	(i)	do all things necessary and provide the Facility Agent and the Security Trustee with all documents and information to enable the Security Trustee to collect or recover any moneys in respect of the Insurances which are
payable to the Security Trustee pursuant to the Finance Documents; and 

  

	 	(ii)	promptly provide the Facility Agent with full information regarding any Major Casualty or in consequence whereof the Ship owned by that Borrower has become or may become a Total Loss and agree to any settlement of such
casualty or other accident or damage to that Ship only with the Facility Agent’s prior written consent, 

 and that each
Borrower shall, forthwith upon demand, indemnify the Security Trustee in respect of all reasonable fees and other expenses incurred by or for the account of the Security Trustee in connection with any such report as is referred to in paragraph
(a) above. 
  

	13.17	Mortgagee’s interest, additional perils 

 The Security Trustee shall be entitled
from time to time to effect, maintain and renew all or any of the following insurances in an amount equal to either (a) 120 per cent. of the Loan or (b) the aggregate of (i) 110 per cent of the Loan and (ii) the Swap Exposure as
determined on the date on which such insurances are effected or renewed, as the case may be at any time, on such terms, through such insurers and generally in such manner as the Majority Lenders may from time to time consider appropriate: 

  
 52 









	(a)	a mortgagee’s interest marine insurance in relation to each Ship, providing for the indemnification of the Security Trustee for any losses under or in connection with any Finance Document which directly or
indirectly result from loss of or damage to any Ship or a liability of any Ship or of any Borrower, being a loss or damage which is prima facie covered by an obligatory insurance but in respect of which there is a
non-payment (or reduced payment) by the underwriters by reason of, or on the basis of an allegation concerning: 

  

	 	(i)	any act or omission on the part of a Borrower, of any operator, charterer, manager or sub-manager of the Ship owned by it or of any officer, employee or agent of that Borrower or
of any such person, including any breach of warranty or condition or any non-disclosure relating to such obligatory insurance; 


 

	 	(ii)	any act or omission, whether deliberate, negligent or accidental, or any knowledge or privity of a Borrower, any other person referred to in paragraph (i) above, or of any officer, employee or agent of that
Borrower or of such a person, including the casting away or damaging of the Ship owned by it and/or the Ship owned by it being unseaworthy; and/or 

  

	 	(iii)	any other matter capable of being insured against under a mortgagee’s interest marine insurance whether or not similar to the foregoing; 


 

	(b)	a mortgagee’s interest additional perils insurance in relation to each Ship, providing for the indemnification of the Security Trustee against, among other things, any possible losses or other consequences of any
Environmental Claim, including the risk of expropriation, arrest or any form of detention of a Ship, the imposition of any Security Interest over a Ship and/or any other matter capable of being insured against under a mortgagee’s interest
additional perils insurance whether or not similar to the foregoing, 

 and that Borrower shall upon demand fully indemnify the
Security Trustee in respect of all premiums and other expenses which are incurred in connection with or with a view to effecting, maintaining or renewing any such insurance or dealing with, or considering, any matter arising out of any such
insurance under this Clause 13.17. 
  

	13.18	Review of insurance requirements 

 The Majority Lenders shall be entitled to review the
requirements of this Clause 13 from time to time in order to take account of any changes in circumstances after the date of this Agreement which are, in the opinion of the Majority Lenders, significant and capable of affecting any Borrower or the
Ship owned by it and its or their insurance (including, without limitation, changes in the availability or the cost of insurance coverage or the risks to which that Borrower may be subject), and may appoint insurance consultants in relation to this
review at the cost of that Borrower and that Borrower shall upon demand fully indemnify the Facility Agent in respect of all fees and other expenses incurred by or for the account of the Facility Agent in appointing an independent marine insurance
broker or adviser to conduct such review. 
  

	13.19	Modification of insurance requirements 

 The Security Trustee shall notify each Borrower
of any proposed modification under Clause 13.18 to the requirements of this Clause 13 which the Majority Lenders reasonably consider appropriate in the circumstances, and such modification shall take effect on and from the date it is notified in
writing to the Borrowers as an amendment to this Clause 13 and shall bind the Borrowers accordingly. 
  

	13.20	Compliance with mortgagee’s instructions 

 The Security Trustee shall be entitled
(without prejudice to or limitation of any other rights which it may have or acquire under any Finance Document) to require a Ship to remain at any safe port or to proceed to and remain at any safe port designated by the Security Trustee until the
relevant Borrower implements any amendments to the terms of the obligatory insurances and any operational changes required as a result of a notice served under Clause 13.19. 

  
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	14	SHIP COVENANTS 

  

	14.1	General 

 Each Borrower also undertakes with each Creditor Party to comply with the
following provisions of this Clause 14 at all times during the Security Period (after the Ship owned by it has been delivered to it under the relevant Shipbuilding Contract) except as the Facility Agent, with the authorisation of the Majority
Lenders, may otherwise permit (in the case of the Clauses 14.2, 14.3(b), 14.13(e) and 14.14, such permission not to be unreasonably withheld). 
  

	14.2	Ship’s name and registration 

 Each Borrower shall keep the Ship owned by it
registered in its name under the relevant Approved Flag; shall not do, omit to do or allow to be done anything as a result of which such registration might be cancelled or imperilled and shall not change the name or port of registry of that Ship.

  

	14.3	Repair and classification 

 Each Borrower shall keep the Ship owned by it in a good and
safe condition and state of repair, sea and cargo worthy in all respects: 
  

	(a)	consistent with first-class ship ownership and management practice; 

  

	(b)	so as to maintain the highest class with a classification society acceptable to the Majority Lenders (it being agreed that Lloyd’s Register and the American Bureau of Shipping shall be deemed acceptable) free of
overdue recommendations and conditions and, upon the Security Trustee’s request, such classification society shall provide the Security Trustee with any information and documentation required in respect of that Ship as the same is maintained in
the records of such classification society; and 

  

	(c)	so as to comply with all laws and regulations applicable to vessels registered at ports in the relevant Approved Flag State or to vessels trading to any jurisdiction to which that Ship may trade from time to time,
including but not limited to the ISM Code, the ISM Code Documentation and the ISPS Code, 

 and the Facility Agent shall be
given power of attorney in the form attached as Schedule 6 to act on behalf of that Borrower in order to, inspect the class records and any files held by the classification society and to require the classification society to provide the Facility
Agent or any of its nominees with any information, document or file, it might reasonably request and the classification society shall be fully entitled to rely hereon without any further inquiry. 

 

	14.4	Classification society undertaking 

 Each Borrower shall instruct the classification
society referred to in Clause 14.3 (and shall use its best endeavours to procure that the classification society undertakes with the Security Trustee) in relation to the Ship owned by it: 

 

	(a)	to send to the Security Trustee, following receipt of a written request from the Security Trustee, certified true copies of all original class records and any other related records held by the classification society in
relation to that Ship; 


  
 54 









	(b)	to allow the Security Trustee (or its agents), at any time and from time to time, to inspect the original class and related records of that Ship at the offices of the classification society and to take copies of them;


  

	(c)	to notify the Security Trustee immediately in writing if the classification society: 

  

	 	(i)	receives notification from that Borrower or any person that that Ship’s classification society is to be changed; 

  

	 	(ii)	becomes aware of any facts or matters which may result in or have resulted in a change, suspension, discontinuance, withdrawal or expiry of that Ship’s class under the rules or terms and conditions of that
Ship’s membership of the classification society; 

  

	(d)	following receipt of a written request from the Security Trustee: 

  

	 	(i)	to confirm that that Borrower is not in default of any of its contractual obligations or liabilities to the classification society and, without limiting the foregoing, that it has paid in full all fees or other charges
due and payable to the classification society; or 

  

	 	(ii)	if that Borrower is in default of any of its contractual obligations or liabilities to the classification society, to specify to the Security Trustee in reasonable detail the facts and circumstances of such default, the
consequences thereof, and any remedy period agreed or allowed by the classification society. 

  

	14.5	Modification 

 No Borrower shall make any modification or repairs to, or replacement of,
the Ship owned by it or equipment installed on her which would or might materially alter the structure, type or performance characteristics of that Ship or materially reduce her value. 

 

	14.6	Removal of parts 

 No Borrower shall remove any material part of the Ship owned by it, or
any item of equipment installed on, that Ship unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest
or any right in favour of any person other than the Security Trustee and becomes on installation on the relevant Ship the property of the relevant Borrower and subject to the security constituted by the Mortgage and any Deed of Covenant Provided
that a Borrower may install equipment owned by a third party if the equipment can be removed without any risk of damage to the Ship owned by it. 
  

	14.7	Surveys 

 Each Borrower shall submit the Ship owned by it regularly to all periodical or
other surveys which may be required for classification purposes and, if so required by the Majority Lenders provide the Security Trustee, with copies of all survey reports. 
  

	14.8	Technical Survey 

 The Borrowers shall promptly following the request of the Facility
Agent (acting on the instructions of the Lenders) (to be made within 6 months of the Drawdown Date relative to the Advance) and at any time thereafter submit the Ship owned by it for a technical survey by an independent surveyor or surveyors
appointed by the Facility Agent. All fees and expenses incurred in relation to the appointment of the surveyor or surveyors and the preparation and issue of all technical reports pursuant to this Clause 14.8 shall be for the account of the
Borrowers. 

  
 55 









	14.9	Inspection 

 Each Borrower shall permit the Security Trustee (by surveyors or other
persons appointed by it for that purpose) to board the Ship owned by it at all reasonable times to inspect her condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections
Provided that so long as a Ship is found to be in a satisfactory condition to the Facility Agent (acting reasonably) and no continuing Event of Default or Potential Event of Default shall be in existence, the Borrowers shall not be obliged to
pay the fees and expenses incurred in connection with the inspection of the relevant Ship more than once in any twelve-month period. 
  

	14.10	Prevention of and release from arrest 

 Each Borrower shall promptly discharge: 

 

	(a)	all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against the Ship owned by it, its Earnings or Insurances; 


 

	(b)	all taxes, dues and other amounts charged in respect of that Ship, its Earnings or Insurances; and 

  

	(c)	all other outgoings whatsoever in respect of that Ship, its Earnings or Insurances, 

 and,
forthwith upon receiving notice of the arrest of that Ship, or of her detention in exercise or purported exercise of any lien or claim, the Borrower which is the owner of that Ship shall procure her release by providing bail or otherwise as the
circumstances may require. 
  

	14.11	Compliance with laws etc. 

 Each Borrower shall and shall procure that each Security
Party shall: 
  

	(a)	comply with the ISM Code, all Environmental Laws, all Sanctions, and all other laws or regulations relating to the Ship owned by it, its ownership, operation and management or to the business of that Borrower;


  

	(b)	not employ the Ship owned by it nor allow her employment in any manner contrary to any law or regulation in any relevant jurisdiction including, but not limited to, the ISM Code and the ISPS Code; and 


 

	(c)	in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit the Ship owned by it to enter or trade to any zone which is declared a war zone by any government or by that
Ship’s war risks insurers unless the prior written consent of the Majority Lenders has been given and that Borrower has (at its expense) effected any special, additional or modified insurance cover which the Majority Lenders may require.


  

	14.12	Provision of information 

 Each Borrower shall promptly provide the Security Trustee with
any information which the Majority Lenders request regarding: 
  

	(a)	the Ship owned by it, her employment, position and engagements; 

  

	(b)	the Earnings and payments and amounts due to the master and crew of the Ship owned by it; 


  
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	(c)	any expenses incurred, or likely to be incurred, in connection with the operation, maintenance or repair of the Ship owned by it and any payments made in respect of that Ship; 


 

	(d)	any towages and salvages; and 

  

	(e)	its compliance, and the compliance of the Ship owned by it with the ISM Code and the ISPS Code, 


and, upon the Security Trustee’s request, provide copies of any current charter relating to the Ship owned by it and of any current
charter guarantee, and copies of the ISM Code Documentation and the ISCC. 
  

	14.13	Notification of certain events 

 Each Borrower shall immediately notify the Security
Trustee by letter of: 
  

	(a)	any casualty which is or is likely to be or to become a Major Casualty; 

  

	(b)	any occurrence as a result of which the Ship owned by it has become or is, by the passing of time or otherwise, likely to become a Total Loss; 


 

	(c)	any requirement, overdue condition or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with; 


 

	(d)	any arrest or detention of the Ship owned by it, any exercise or purported exercise of any lien on that Ship or her Earnings or any requisition of that Ship for hire, 


 

	(e)	any intended dry docking of the Ship owned by it where the cost of the dry docking will, or is likely to, exceed $1,500,000 (or the equivalent in any other currency) in aggregate; 


 

	(f)	any Environmental Claim made against that Borrower or in connection with the Ship owned by it or any Environmental Incident; 

  

	(g)	any claim for breach of the ISM Code or the ISPS Code being made against that Borrower, the Approved Manager or otherwise in connection with the Ship owned by it; or 


 

	(h)	any other matter, event or incident, actual or threatened, the effect of which will or could lead to the ISM Code or the ISPS Code not being complied with, 


and that Borrower shall keep the Security Trustee advised in writing on a regular basis and in such detail as the Security Trustee shall
require of that Borrower’s, the Approved Manager’s or any other person’s response to any of those events or matters. 
  

	14.14	Restrictions on, appointment of managers etc. 

 No Borrower shall: 

 

	(a)	let either Ship on bareboat or demise charter for any period; 

  

	(b)	enter into any time charter (including, without limitation, any Charterparty) in relation to the Ship owned by it under which more than 2 months’ hire (or the equivalent) is payable in advance; 


 

	(c)	enter into any Charterparty other than with the prior written consent of the Majority Lenders and subject to compliance with Clause 14.18; 


  
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	(d)	charter the Ship owned by it otherwise than on bona fide arm’s length terms at the time when the Ship is fixed; 

  

	(e)	appoint a manager of the Ship owned by it other than the Approved Manager; 

  

	(f)	de-activate or lay up the Ship owned by it; or 

  

	(g)	put the Ship owned by it into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed $1,000,000 (or the equivalent in any other currency) unless that person
has first given to the Security Trustee and in terms satisfactory to it a written undertaking not to exercise any lien on that Ship or her Earnings for the cost of such work or otherwise. 


 

	14.15	Notice of Mortgage 

 Each Borrower shall keep the Mortgage registered against the Ship
owned by it as a valid first priority or, as the case may be, preferred mortgage, carry on board that Ship a certified copy of the relevant Mortgage and place and maintain in a conspicuous place in the navigation room and the Master’s cabin of
that Ship a framed printed notice stating that Ship is mortgaged by that Borrower to the Security Trustee. 
  

	14.16	Sharing of Earnings 

 No Borrower shall: 

 

	(a)	enter into any agreement or arrangement for the sharing of any Earnings; 

  

	(b)	enter into any agreement or arrangement for the postponement of any date on which any Earnings are due; the reduction of the amount of any Earnings or otherwise for the release or adverse alteration of any right of that
Borrower to any Earnings; or 

  

	(c)	enter into any agreement or arrangement for the release of, or adverse alteration to, any guarantee or Security Interest relating to any Earnings. 


 

	14.17	ISPS Code 

 Each Borrower shall comply with the ISPS Code and in particular, without
limitation, shall: 
  

	(a)	procure that the Ship and the company responsible for that Ship’s compliance with the ISPS Code comply with the ISPS Code; and 

  


	(b)	maintain for that Ship an ISSC; and 

  

	(c)	notify the Facility Agent immediately in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC. 


 

	14.18	Time Charter Assignment 

 If any Borrower enters into any Charterparty (other than the
Tesoro Charters) in respect of its Ship, the relevant Borrower shall execute a Charterparty Assignment in respect of that Charterparty, and shall deliver to the Facility Agent such other documents equivalent to those referred to at paragraphs 3, 4,
6, 7 and 10 of Part A of Schedule 3 hereof as the Facility Agent may require. 

  
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	14.19	Sanctions Provisions 

  

	(a)	Each Borrower shall, and shall procure that the Guarantor and each other Security Party shall, in respect of any charterer of any of the Ships (including any Approved Charterer), shall use all reasonable endeavours to
procure that the charterer shall, comply in all respects with all laws to which it may be subject, including, without limitation, all national and international laws, directives, regulations, decrees, rulings and such analogous rules, including, but
not limited to, rules relating to Sanctions. 

  

	(b)	Each Borrower undertakes to make the Approved Charterer and all other charterers and operators of each Ship aware of the requirements of this Clause 14.19 and of Clause 10.20 and shall procure that they act in
accordance with these requirements. 

  

	14.20	No variation to Tesoro Charters 

 Except as the Facility Agent, acting with the
authorisation of the Majority Lenders (or, where specified, all the Lenders) may otherwise permit, there shall be no material amendment to the terms of the Tesoro Charters or either of them. For the purpose of this Clause, a change shall be deemed
“material” if it reduces the daily charter gross hire rate or the duration of the Tesoro Charters or if it results in a change in the identity of the Tesoro Charterer. 

 

	15	SECURITY COVER 

  

	15.1	Minimum required security cover 

 Clause 15.2 applies if the Facility Agent notifies the
Borrowers that either Security Cover Ratio is below: 
  

	(a)	at all times when either Ship is operating under a Tesoro Charter, 125 per cent.; or 

  

	(b)	at all other times, 140 per cent. 

  

	15.2	Provision of additional security; prepayment 

 If the Facility Agent serves a notice on
the Borrowers under Clause 15.1, the Borrowers shall prepay such part (at least) of the outstanding amount of the Loan as will eliminate the shortfall on or before the date falling 30 days after the date on which the Facility Agent’s notice is
served under Clause 15.1 (the “Prepayment Date”) unless at least 1 Business Day before the Prepayment Date they have provided, or ensured that a third party has provided, additional security acceptable to the Majority Lenders and
which, in the opinion of the Majority Lenders, has a net realisable value at least equal to the shortfall and is documented in such terms and securing such part of the Loan and such Swap Exposure as the Facility Agent may, with authorisation from
the Majority Lenders, approve or require. 
  

	15.3	Requirement for additional documents 

 The Borrowers shall not be deemed to have complied
with Clause 15.2 above until the Facility Agent has received in connection with the additional security certified copies of documents of the kinds referred to in paragraphs 3, 4 and 5 of Schedule 3, Part A and such legal opinions in terms acceptable
to the Majority Lenders from such lawyers as they may select. 
  

	15.4	Valuation of Ships 

 The Market Value of a Ship at any date is that shown by the
arithmetic average of two valuations each prepared: 
  

	(a)	as at a date not more than 15 days previously and, for the purposes of Clause 15.9, each Compliance Date and each Dropdown Date; 

  

	(b)	by an Approved Broker selected, obtained by, and addressed to the Facility Agent; 


  
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	(c)	with or without physical inspection of the relevant Ship (as the Facility Agent may require); 

  

	(d)	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of employment; and


  

	(e)	after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale, 


Provided that if the difference between the 2 valuations obtained at any one time pursuant to this Clause 15.4 is greater than
15 per cent. of the lower valuation of such valuations, a valuation shall be commissioned from a third Approved Broker appointed by the Facility Agent. Such valuation shall be conducted in accordance with this Clause 15.4 and the Market Value
of that Ship in such circumstances shall be the average of the initial 2 valuations and the valuation provided by the third Approved Broker. 

In this Clause 15.4 “Compliance Date” means 30 June and 31 December in each financial year of the Borrowers. 

 

	15.5	Value of additional security 

 The net realisable value of any additional security which
is provided under Clause 15.2 and which consists of a Security Interest over a vessel shall be that shown by a valuation complying with the requirements of Clause 15.4. 
  

	15.6	Valuations binding 

 Any valuation under Clause 15.2, 15.4 or 15.5 shall be binding and
conclusive as regards the Borrowers, as shall be any valuation which the Majority Lenders make of a security which does not consist of or include a Security Interest. 
  

	15.7	Provision of information 

 The Borrowers shall promptly provide the Facility Agent and
any Approved Broker or expert acting under Clause 15.4 or 15.5 with any information which the Facility Agent or the Approved Broker or expert may request for the purposes of the valuation; and, if the Borrowers fail to provide the information by the
date specified in the request, the valuation may be made on any basis and assumptions which the Approved Broker or the Majority Lenders (or the expert appointed by them) consider prudent. 

 

	15.8	Payment of valuation expenses 

 Without prejudice to the generality of the
Borrowers’ obligations under Clauses 20.2, 20.3 and 21.4, the Borrowers shall, on demand, pay the Facility Agent the amount of the reasonable fees and expenses of any Approved Broker or expert instructed by the Facility Agent under this Clause
and all reasonable legal and other expenses incurred by any Creditor Party in connection with any matter arising out of this Clause. 
  

	15.9	Frequency of valuations 

 The Borrowers shall provide the Facility Agent with valuations
of the Ships at such times as the Majority Lenders shall reasonably deem necessary and, in any event, on the dates on which the Guarantor or Substitute Guarantor as may be relevant provides a Compliance Certificate (as such term is defined in the
Guarantee or New Guarantee, as the case may be) in accordance with Clause 12.5 of the Guarantee or, as the case may be, the corresponding clause of the New Guarantee and on each date of a Dropdown Provided that so long as no Event of
Default has occurred, the Borrowers shall not be obliged to pay for more than two sets of valuations of each Ship during each calendar year unless a breach in the applicable Security Cover Ratio is identified by any set of valuation obtained by the
Facility Agent, in which case the Borrowers shall pay for all sets of valuations identifying such breach. 

  
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	16	PAYMENTS AND CALCULATIONS 

  

	16.1	Currency and method of payments 

 All payments to be made: 

 

	(a)	by the Lenders to the Facility Agent; or 

  

	(b)	by the Borrowers to the Facility Agent, the Security Trustee or any Lender, 

 under a Finance
Document shall be made to the Facility Agent or to the Security Trustee, in the case of an amount payable to it: 
  

	 	(i)	by not later than 11.00 a.m. (New York City time) on the due date; 

  

	 	(ii)	in same day Dollar funds settled through the New York Clearing House Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the Facility Agent shall specify as being customary at
the time for the settlement of international transactions of the type contemplated by this Agreement); 

  

	 	(iii)	in the case of an amount payable by a Lender to the Facility Agent or by the Borrowers to the Facility Agent or any Lender, to the account of the Facility Agent with the following payment instructions:


 US$ Correspondent Account         JP Morgan Chase Bank NY 

Swift
code                                      CHASUS33 

Beneficiary Bank
                          Crédit Agricole Corporate and Investment Bank 

Swift code
                                    BSUIFRPP 

Account Number
                          786419036 

Reference
                                     Middle Office Instance
Shipping Account 00 117 313 255 

IBAN                    
                        FR76 3148 9000 1000 1173 1325 547 

Attention                   
                   C. Costil - Shipping Dept. Asterias and Scorpio 

or to such other account with such other bank as the Facility Agent may from time to time notify to the Borrowers and the other Creditor
Parties; and 
  

	 	(iv)	in the case of an amount payable to the Security Trustee, to such account as it may from time to time notify to the Borrowers and the other Creditor Parties. 


 

	16.2	Payment on non-Business Day 

 If any payment by a
Borrower under a Finance Document would otherwise fall due on a day which is not a Business Day: 
  

	(a)	the due date shall be extended to the next succeeding Business Day; or 


  
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	(b)	if the next succeeding Business Day falls in the next calendar month, the due date shall be brought forward to the immediately preceding Business Day, 


and interest shall be payable during any extension under paragraph (a) at the rate payable on the original due date. 

 

	16.3	Basis for calculation of periodic payments 

 All interest and commitment fee and any
other payments under any Finance Document which are of an annual or periodic nature shall accrue from day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year. 

 

	16.4	Distribution of payments to Creditor Parties 

 Subject to Clauses 16.5, 16.6 and 16.7:

  

	(a)	any amount received by the Facility Agent under a Finance Document for distribution or remittance to a Lender, the Swap Bank or the Security Trustee shall be made available by the Facility Agent to that Lender, the Swap
Bank or, as the case may be or the Security Trustee by payment, with funds having the same value as the funds received, to such account as the Lender, the Swap Bank or the Security Trustee may have notified to the Facility Agent not less than 5
Business Days previously; and 

  

	(b)	amounts to be applied in satisfying amounts of a particular category which are due to the Lenders and/or the Swap Bank generally shall be distributed by the Facility Agent to each Lender and the Swap Bank pro rata to
the amount in that category which is due to it. 

  

	16.5	Permitted deductions by Facility Agent 

 Notwithstanding any other provision of this
Agreement or any other Finance Document, the Facility Agent may, before making an amount available to a Lender or the Swap Bank, deduct and withhold from that amount (i) any sum which is then due and payable to the Facility Agent from that
Lender or the Swap Bank under any Finance Document or any sum which the Facility Agent is then entitled under any Finance Document to require that Lender or the Swap Bank to pay on demand and (ii) any amount the Facility Agent determines is
required to be deducted and withheld under FATCA. 
  

	16.6	Facility Agent only obliged to pay when monies received 

 Notwithstanding any other
provision of this Agreement or any other Finance Document, the Facility Agent shall not be obliged to make available to the Borrowers or, following a Dropdown, to the Borrowers that are members of the relevant Group, or any Lender or Swap Bank any
sum which the Facility Agent is expecting to receive for remittance or distribution to the Borrowers or that Lender or the Swap Bank until the Facility Agent has satisfied itself that it has received that sum. 

 

	16.7	Refund to Facility Agent of monies not received 

 If and to the extent that the Facility
Agent makes available a sum to the Borrowers or a Lender or the Swap Bank, without first having received that sum, the Borrowers or (as the case may be) the Lender or the Swap Bank concerned shall, on demand: 

 

	(a)	refund the sum in full to the Facility Agent; and 

  

	(b)	pay to the Facility Agent the amount (as certified by the Facility Agent) which will indemnify the Facility Agent against any funding or other loss, liability or expense incurred by the Facility Agent as a result of
making the sum available before receiving it. 


  
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	16.8	Facility Agent may assume receipt 

 Clause 16.7 shall not affect any claim which the
Facility Agent has under the law of restitution and applies irrespective of whether the Facility Agent had any form of notice that it had not received the sum which it made available. 

 

	16.9	Creditor Party accounts 

 Each Creditor Party shall maintain accounts showing the amounts
owing to it by the Borrowers and each Security Party under the Finance Documents and all payments in respect of those amounts made by the Borrowers and any Security Party. 
  

	16.10	Facility Agent’s memorandum account 

 The Facility Agent shall maintain a memorandum
account showing the amounts advanced by the Lenders and all other sums owing to the Facility Agent and the Security Trustee and each Lender from the Borrowers and each Security Party under the Finance Documents and all payments in respect of those
amounts made by the Borrowers and any Security Party. 
  

	16.11	Accounts prima facie evidence 

 If any accounts maintained under Clauses 16.9 and 16.10
show an amount to be owing by a Borrower or a Security Party to a Creditor Party, those accounts shall, absent manifest error, be prima facie evidence that that amount is owing to that Creditor Party. 

 

	16.12	Impaired Agent 

  

	(a)	If, at any time, the Facility Agent becomes an Impaired Agent, the Borrowers or a Lender which is required to make a payment under the Finance Documents to the Facility Agent in accordance with Clause 16.1 may instead
either: 

  

	 	(i)	pay that amount direct to the required recipient(s); or 

  

	 	(ii)	if in its absolute discretion it considers that it is not reasonably practicable to pay that amount direct to the required recipient(s), pay the relevant part of that amount to an interest-bearing account held with an
Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Borrowers or the Facility Agent making the payment (the “Paying Party”) and designated as a trust account for the
benefit of the party or parties under this Agreement beneficially entitled to that payment under the Finance Documents (the “Recipient Party” or “Recipient Parties”), 


in each case such payments must be made on the due date for payment under the Finance Documents; 

 

	(b)	all interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements; 


 

	(c)	a party to this Agreement which has made a payment in accordance with paragraphs (a) and (b) shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk
with respect to the amounts standing to the credit of the trust account; 

  

	(d)	promptly upon the appointment of a successor Agent in accordance with the Finance Documents, each Paying Party shall (other than to the extent that that party has given an instruction pursuant to paragraph
(e) below) give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties
in accordance with Clause 16.4; and 


  
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	(e)	a Paying Party shall, promptly upon request by a Recipient Party and to the extent: 

  

	 	(i)	that it has not given an instruction pursuant to paragraph (d) above; and 

  

	 	(ii)	that it has been provided with the necessary information by that Recipient Party, 

 give all
requisite instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient Party. 
  

	17	APPLICATION OF RECEIPTS 

  

	17.1	Normal order of application 

 Except as any Finance Document may otherwise provide, any
sums which are received or recovered by any Creditor Party under or by virtue of any Finance Document shall be applied: 
  

	(a)	FIRST: in or towards satisfaction of any amounts then due and payable under the Finance Documents (other than under a Master Agreement) in the following order and proportions: 


 

	 	(i)	first, in or towards satisfaction of any budgeted operating expenses and accruals of the Ships which, in the case of accruals, are due and payable within 6 months of the applicable date; 


 

	 	(ii)	secondly, towards establishing, building-up and maintaining the applicable minimum working capital amount of each Borrower to be maintained under Clause 11.21(b);


  

	 	(iii)	thirdly, in or towards satisfaction pro rata of all amounts then due and payable to the Creditor Parties under the Finance Documents (other than a Master Agreement) other than those amounts referred to at paragraphs
(ii) and (iii) (including, but without limitation, all amounts payable by the Borrowers under Clauses 20, 21 and 22 of this Agreement or by the Borrowers or any Security Party under any corresponding or similar provision in any other Finance
Document (other than a Master Agreement)); 

  

	 	(iv)	fourthly, in or towards satisfaction pro rata of any and all amounts of interest or default interest payable to the Creditor Parties under the Finance Documents (other than under a Master Agreement); and


  

	 	(v)	fifthly, in or towards satisfaction of the Loan; 

  

	 	(vi)	sixthly, towards establishing, building-up and maintaining the cash buffer to be maintained under Clause 11.21(a) covering the estimated cost of all regulatory surveys included in
the Borrowers’ budgets provided pursuant to Clause 11.15(a) during the end of the Security Period; 

  

	(b)	SECONDLY: in or towards satisfaction of any amounts then due and payable under a Master Agreement in the following order and proportions: 


 

	 	(i)	first, in or towards satisfaction pro rata of all amounts then due and payable to the Swap Bank under a Master Agreement other than those amounts referred to at paragraphs (ii) and (iii); 


  
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	 	(ii)	secondly, in or towards satisfaction pro rata of any and all amounts of interest or default interest payable to the Swap Bank under a Master Agreement (and, for this purpose, the expression “interest”
shall include any net amount which that Borrower shall have become liable to pay or deliver under section 2(e) (Obligations) of a Master Agreement but shall have failed to pay or deliver to the Swap Bank at the time of application or distribution
under this Clause 17); and 

  

	 	(iii)	thirdly, in or towards satisfaction of the aggregate Swap Exposure of the Swap Bank calculated as at the actual Early Termination Date applying to each particular Designated Transaction, or if no such Early Termination
Date shall have occurred, calculated as if an Early Termination Date occurred on the date of application or distribution hereunder); 

  

	(c)	THIRDLY: in retention of an amount equal to any amount not then due and payable under any Finance Document (other than a Master Agreement) but which the Facility Agent, by notice to the Borrowers, the Security Parties
and the other Creditor Parties, states in its opinion will or may become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the foregoing provisions of this Clause;


  

	(d)	FOURTHLY: in retention of an amount equal to any amount not then due under and payable under a Master Agreement but which the Swap Bank, by notice to the Borrowers, the Security Parties and the other Creditor Parties,
states in its opinion will or may become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the foregoing provisions of this Clause; and 


 

	(e)	FIFTHLY: any surplus shall be paid to the Borrowers or to any other person appearing to be entitled to it. 

  

	17.2	Variation of order of application 

 The Facility Agent may, with the authorisation of the
Majority Lenders, by notice to the Borrowers, the Security Parties and the other Creditor Parties provide for a different manner of application from that set out in Clause 17.1 either as regards a specified sum or sums or as regards sums in a
specified category or categories. 
  

	17.3	Notice of variation of order of application 

 The Facility Agent may give notices under
Clause 17.2 from time to time; and such a notice may be stated to apply not only to sums which may be received or recovered in the future, but also to any sum which has been received or recovered on or after the third Business Day before the date on
which the notice is served. 
  

	17.4	Appropriation rights overridden 

 This Clause 17 and any notice which the Facility Agent
gives under Clause 17.2 shall override any right of appropriation possessed, and any appropriation made, by any Borrower or any Security Party. 
  

	18	APPLICATION OF EARNINGS 

  

	18.1	Payment of Earnings 

 Each Borrower undertakes with each Creditor Party to ensure that,
throughout the Security Period (subject only to the provisions of the General Assignments), all the Earnings of each Ship (including without limitation the Earnings under the Tesoro Charters) are paid to the Operating Account for that Ship. Any
monies standing to the credit of the Operating Accounts shall be freely available to the Borrowers subject to there not being any Event of Default or Potential Event of Default in existence at the relevant time. 

  
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	18.2	Monthly retentions 

 In relation to each Advance, the Borrowers shall ensure that, in
each calendar month after the Drawdown Date of the Advance, on such dates as the Facility Agent may from time to time specify, there is transferred to the applicable Retention Account out of the aggregate Earnings received in the applicable
Operating Account during the preceding calendar month: 
  

	(a)	one-sixth of the amount of the Instalment for that Advance falling due under Clause 8.1 on the next Repayment Date for that Advance; and 


 

	(b)	the relevant fraction of the aggregate amount of interest on that Advance which is payable on the next due date for payment of interest on that Advance under this Agreement, reduced by the amount of any corresponding
payment which relates to that Advance from the Facility Agent due to either Borrower under any Master Agreement; and 

  

	(c)	the relevant fraction of the aggregate of the net amount which relates to that Advance and which is payable by either Borrower to the Swap Bank under any Master Agreement on the next due date for payment of such amount
under the relevant Master Agreement. 

 The “relevant fraction” in relation to an Advance is a fraction of
which: 
  

	 	(i)	the numerator is one; and 

  

	 	(ii)	the denominator is: 

  

	 	(A)	the number of months comprised in the then current Interest Period for that Advance; or 

  

	 	(B)	if the period is shorter, the number of months from the later of the commencement of the current Interest Period for that Advance or the last due date for payment of interest on that Advance to the next due date for
payment of interest on that Advance under this Agreement. 

  

	18.3	Shortfall in Earnings 

  

	(a)	If the credit balance on an Operating Account is insufficient in any calendar month for the required amount in relation to the applicable Advance to be transferred to the applicable Retention Account under Clause 18.2
the Borrowers shall make up the amount of the insufficiency on demand from the Facility Agent. 

  

	(b)	Without prejudicing the Facility Agent’s right to make such demand at any time, the Facility Agent may permit the Borrowers to make up all or part of the insufficiency by increasing the amount of any transfer under
Clause 18.2 from the Earnings received in the next or subsequent calendar months. 

  

	18.4	Application of retentions 

 Until an Event of Default occurs and is continuing and in
relation to each Advance, the Facility Agent shall, on each Repayment Date for that Advance and on each due date for the payment of interest under this Agreement in relation to that Advance, apply so much of the then balance on the applicable
Retention Account as equals: 
  

	(a)	the Instalment for that Advance due on that date; 

  

	(b)	the amount of interest payable on that date in relation to that Advance; 

  

	(c)	the amount payable in relation to that Advance by either Borrower to the Swap Bank under any Master Agreement on that date; and 


  
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	(d)	the amount of any Master Agreement Prepayment Proceeds in relation to that Advance paid into the applicable Retention Account during the Interest Period ending on that date, 


in discharge of the Borrowers’ liability for that Instalment, the amount then due and payable under a Master Agreement or (as the case may
be) their prepayment obligation under Clause 8.14. 
  

	18.5	Interest accrued on Retention Accounts 

 Any credit balance on each Retention Account
shall bear interest at the rate from time to time offered by the Account Bank to its customers for Dollar deposits of similar amounts and for periods similar to those for which such balances appear to the Account Bank likely to remain on that
Retention Account. 
  

	18.6	Retention Accounts 

 No Borrower shall withdraw or otherwise dispose of any amounts
standing to the credit of a Retention Account without the Facility Agent’s prior written consent (acting with the authorisation of the Majority Lenders). 
  

	18.7	Minimum Working Capital Accounts 

 No Borrower shall withdraw or otherwise dispose of any
amounts standing to the credit of a Minimum Working Capital Account without the Facility Agent’s prior written consent (acting with the authorisation of the Majority Lenders) and Provided that no Event of Default or Potential Event of
Default has occurred and is continuing at the relevant time and no shortfall in the Security Cover Ratio to be maintained pursuant to Clause 15.1 would be be caused by such withdrawal. 

 

	18.8	Release of accrued interest - Retention Accounts 

 Interest accruing under Clause 18.5
shall be credited to the applicable Retention Account and, to the extent not applied previously pursuant to Clause 18.4, shall be released to the Borrowers at the end of the Security Period. 

 

	18.9	Release of accrued interest - Operating Accounts 

 Interest accruing on each Operating
Account under Clause 18.1 shall be released to the Borrowers on each Repayment Date unless an Event of Default or a Potential Event of Default has occurred. 
  

	18.10	Location of accounts 

 Each Borrower shall promptly: 

 

	(a)	comply with any requirement of the Facility Agent as to the location or re-location of the Accounts (or any of them); and 


 

	(b)	execute any documents which the Facility Agent specifies to create or maintain in favour of the Security Trustee a Security Interest over (and/or rights of set-off, consolidation
or other rights in relation to) the Accounts (or any of them). 

  

	18.11	Debits for expenses etc. 

 The Facility Agent shall be entitled (but not obliged) from
time to time to debit any Operating Account, with no later than 10 Business Days prior notice to the Borrowers, in order to discharge any amount due and payable under Clause 19.2, 20.1 or 21 to a Creditor Party or payment of which any Creditor Party
has become entitled to demand under these Clauses. 

  
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	19	EVENT OF DEFAULT 

  

	19.1	Events of Default 

 An Event of Default occurs if: 

 

	(a)	any Borrower or any Security Party fails to pay when due or (if so payable) on demand any sum payable under a Finance Document or under any document relating to a Finance Document unless its failure to pay is caused by
(i) administrative or technical error or (ii) a Disruption Event and payment is made within 3 Business Days of its due date; or 

  

	(b)	any breach occurs of Clause 8.9(c), 9.2, 10.18, 10.20, 11.2, 11.3, 11.20, 11.21, 12.2, 12.3, 13.2, 13.3, 14.9, 15.2, 18.1 or 18.2; or 


 

	(c)	any breach by any Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach covered by paragraphs (a) or (b) above) if, in the reasonable opinion of the Majority Lenders,
such default is capable of remedy, and such default continues unremedied 14 days after written notice from the Facility Agent requesting action to remedy the same; or 


 

	(d)	(subject to any applicable grace period specified in the Finance Documents) any breach by any Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach covered by paragraphs (a),
(b) or (c) above); or 

  

	(e)	any representation, warranty or statement made or repeated by, or by an officer of, any Borrower or a Security Party in a Finance Document or in a Drawdown Notice or any other notice or document relating to a Finance
Document is untrue or misleading when it is made or repeated; or 

  

	(f)	any of the following occurs in relation to any Financial Indebtedness of a Relevant Person (in the case of the Guarantor and, after exercise of an Option, the Substitute Guarantor, in an amount exceeding, in aggregate,
$5,000,000 or the equivalent in any other currency), in aggregate: 

  

	 	(i)	any Financial Indebtedness of a Relevant Person is not paid when due or, if so payable, on demand; or 

  

	 	(ii)	any Financial Indebtedness of a Relevant Person becomes due and payable or capable of being declared due and payable prior to its stated maturity date as a consequence of any event of default; or 


 

	 	(iii)	a lease, hire purchase agreement or charter creating any Financial Indebtedness of a Relevant Person is terminated by the lessor or owner or becomes capable of being terminated as a consequence of any termination event;
or 

  

	 	(iv)	any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee, foreign exchange or other facility, or any swap or other derivative contract or transaction, relating to any Financial Indebtedness of
a Relevant Person ceases to be available or becomes capable of being terminated as a result of any event of default, or cash cover is required, or becomes capable of being required, in respect of such a facility as a result of any event of default;
or 

  

	 	(v)	any Security Interest securing any Financial Indebtedness of a Relevant Person becomes enforceable; or 


  
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	(g)	any of the following occurs in relation to a Relevant Person: 

  

	 	(i)	a Relevant Person becomes, in the reasonable opinion of the Majority Lenders, unable to pay its debts as they fall due; or 

  

	 	(ii)	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress in respect of a sum of, or sums (in the case of a Borrower, in respect of an amount exceeding,
$5,000,000 or the equivalent in another currency unless such execution, attachment, arrest, sequestration or distress is dismissed, withdrawn, released or lifted within 15 Business Days of the occurrence of such event; or 


 

	 	(iii)	any administrative or other receiver is appointed over any asset of a Relevant Person; or 

  

	 	(iv)	an administrator is appointed (whether by the court or otherwise) in respect of a Relevant Person; or 

  

	 	(v)	any formal declaration of bankruptcy or any formal statement to the effect that a Relevant Person is insolvent or likely to become insolvent is made by a Relevant Person or by the directors of a Relevant Person or, in
any proceedings, by a lawyer acting for a Relevant Person; or 

  

	 	(vi)	a provisional liquidator is appointed in respect of a Relevant Person, a winding up order is made in relation to a Relevant Person or a winding up resolution is passed by a Relevant Person; or 


 

	 	(vii)	a resolution is passed, an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by (aa) a Relevant Person, (bb) the members or directors of a
Relevant Person, (cc) a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person, or (dd) a government minister or public or regulatory authority of a Pertinent Jurisdiction for or with a
view to the winding up of that or another Relevant Person or the appointment of a provisional liquidator or administrator in respect of that or another Relevant Person, or that or another Relevant Person ceasing or suspending business operations or
payments to creditors, save that this paragraph does not apply to a fully solvent winding up of a Relevant Person other than the Guarantor or any Borrower which is, or is to be, effected for the purposes of an amalgamation or reconstruction
previously approved by the Majority Lenders and effected not later than 3 months after the commencement of the winding up; or 

  

	 	(viii)	an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by a creditor of a Relevant Person (other than a holder of Security Interests which
together relate to all or substantially all of the assets of a Relevant Person) for the winding up of a Relevant Person or the appointment of a provisional liquidator or administrator in respect of a Relevant Person in any Pertinent Jurisdiction,
unless the proposed winding up, appointment of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not with a view to some other insolvency law procedure being implemented instead and either (aa)
the application or petition is dismissed or withdrawn within 30 days of being made or presented, or (bb) within 30 days of the administration notice being given or filed, or the other relevant steps being taken, other action is taken which will
ensure that there will be no administration and (in both cases (aa) or (bb)) the Relevant Person will continue to carry on business in the ordinary way and without being the subject of any actual, interim or pending insolvency law procedure; or



  
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	 	(ix)	a Relevant Person or its directors take any steps (whether by making or presenting an application or petition to a court, or submitting or presenting a document setting out a proposal or proposed terms, or otherwise)
with a view to obtaining, in relation to that or another Relevant Person, any form of moratorium, suspension or deferral of payments, reorganisation of debt (or certain debt) or arrangement with all or a substantial proportion (by number or value)
of creditors or of any class of them or any such moratorium, suspension or deferral of payments, reorganisation or arrangement is effected by court order, by the filing of documents with a court, by means of a contract or in any other way at all; or


  

	 	(x)	any meeting of the members or directors, or of any committee of the board or senior management, of a Relevant Person is held or summoned for the purpose of considering a resolution or proposal to authorise or take any
action of a type described in paragraphs (iv) to (ix) or a step preparatory to such action, or (with or without such a meeting) the members, directors or such a committee resolve or agree that such an action or step should be taken or should be
taken if certain conditions materialise or fail to materialise; or 

  

	 	(xi)	in a country other than England, any event occurs, any proceedings are opened or commenced or any step is taken which, in the opinion of the Majority Lenders is similar to any of the foregoing; or 


 

	 	(xii)	a Relevant Person makes any formal declaration of bankruptcy or any formal statement to the effect that it is insolvent or likely to become insolvent, or a winding up or administration order is made in relation to a
Relevant Person, or the members or directors of a Relevant Person pass a resolution to the effect that it should be wound up, placed in administration or cease to carry on business, save that this paragraph does not apply to a fully solvent winding
up of a Relevant Person other than a Borrower which is, or is to be, effected for the purposes of an amalgamation or reconstruction previously approved by the Majority Lenders and effected not later than 3 months after the commencement of the
winding up; or 

  

	 	(xiii)	a petition is presented in any Pertinent Jurisdiction for the winding up or administration, or the appointment of a provisional liquidator, of a Relevant Person unless the petition is being contested in good faith and
on substantial grounds and is dismissed or withdrawn within 30 days of the presentation of the petition; or 

  

	 	(xiv)	a Relevant Person petitions a court, or presents any proposal for, any form of judicial or non-judicial suspension or deferral of payments, reorganisation of its debt (or certain
of its debt) or arrangement with all or a substantial proportion (by number or value) of its creditors or of any class of them or any such suspension or deferral of payments, reorganisation or arrangement is effected by court order, contract or
otherwise; or 

  

	 	(xv)	any meeting of the members or directors of a Relevant Person is summoned for the purpose of considering a resolution or proposal to authorise or take any action of a type described in paragraphs (iii), (iv), (v) or
(vi) above; or 

  

	 	(xvi)	in a Pertinent Jurisdiction other than England, any event occurs or any procedure is commenced which, in the opinion of the Majority Lenders, is similar to any of the foregoing; or 


 

	(h)	a Borrower, the Guarantor and, after exercise of the Option in respect of any Ship, the Substitute Guarantor, ceases or suspends carrying on its business or a part of its business which, in the reasonable opinion of the
Majority Lenders, is material in the context of this Agreement; or 

  

	(i)	it becomes unlawful in any Pertinent Jurisdiction or impossible: 


  
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	 	(i)	for any Borrower or any Security Party to discharge any liability under a Finance Document or to comply with any other obligation which the Majority Lenders consider material under a Finance Document; or


  

	 	(ii)	for the Facility Agent, the Security Trustee or the Lenders to exercise or enforce any right under, or to enforce any Security Interest created by, a Finance Document; or 


 

	(j)	any official consent necessary to enable any Borrower to own, operate or charter the Ship owned by it or to enable any Borrower or any Security Party to comply with any of the provision which the Majority Lenders
consider material of a Finance Document or any Underlying Document is not granted, expires without being renewed, is revoked or becomes liable to revocation or any condition of such a consent is not fulfilled; or 


 

	(k)	if, after exercising an Option, the common units of the Substitute Guarantor cease to be quoted on the Nasdaq National Market in New York or any other internationally recognised stock exchange acceptable to the Lenders
or if the whole of the issued share capital of any Borrower whose Ship is at the relevant time subject to a Mortgage is not wholly-owned by the Guarantor or, after exercise of the Option in respect of the Ship owned by that Borrower, the Substitute
Guarantor; or 

  

	(l)	any provision which the Majority Lenders reasonably consider material of a Finance Document proves to have been or becomes invalid or unenforceable, or a Security Interest created by a Finance Document proves to have
been or becomes invalid or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security Interest or any other third party claim or interest; or 


 

	(m)	the security constituted by a Finance Document is in any way imperilled or in jeopardy; or 

  

	(n)	any of the following occurs in relation to a Master Agreement: 

  

	 	(i)	notice of an Early Termination Date is given by the Swap Bank under Section 6(a) of a Master Agreement; or 

  

	 	(ii)	a person entitled to do so gives notice of Early Termination Date under Section (b) of a Master Agreement; or 

  

	 	(iii)	an Event of Default (as defined in Section 14 of a Master Agreement) occurs; or 

  

	 	(iv)	a Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in full force and effect for any reason except with the consent of the Swap Bank; or 


 

	(o)	any other event occurs or any other circumstances arise or develop including, without limitation: 

  

	 	(i)	a change in the financial position, state of affairs or prospects of a Borrower, the Guarantor or, after exercising an Option, the Substitute Guarantor; or 


 

	 	(ii)	any accident or other event involving a Ship or another vessel owned, chartered or operated by a Relevant Person; or 

  

	 	(iii)	the commencement of legal or administrative action involving the Borrower, the Ship owned by it, or any Security Party, 


which in the reasonable opinion of the Lenders constitutes a Material Adverse Change. 

  
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	19.2	Actions following an Event of Default 

 On, or at any time after, the occurrence of an
Event of Default in relation to a Group: 
  

	(a)	the Facility Agent may, and if so instructed by the Majority Lenders, the Facility Agent shall: 

  

	 	(i)	serve on the Borrowers a notice stating that the Commitments and all other obligations of each Lender to the Borrowers under this Agreement are terminated; and/or 


 

	 	(ii)	serve on the Borrowers a notice stating that the Advance or Advances (or part thereof) owing by any Borrower which is a member of that Group, all accrued interest and all other amounts accrued or owing in respect of
that or those Advances under this Agreement are immediately due and payable or are due and payable on demand; and/or 

  

	 	(iii)	take any other action which, as a result of the Event of Default or any notice served under paragraph (i) or (ii) above, the Facility Agent and/or the Lenders are entitled to take under any Finance Document or any
applicable law; and/or 

  

	(b)	the Security Trustee may, and if so instructed by the Facility Agent, acting with the authorisation of the Majority Lenders, the Security Trustee shall take any action which, as a result of the Event of Default or any
notice served under paragraph (a) (i) or (ii) above, the Security Trustee, the Facility Agent, the Lenders and/or the Swap Bank are entitled to take under any Finance Document or any applicable law. 


 

	19.3	Termination of Commitments 

 On the service of a notice under paragraph (a)(i) of Clause
19.2, the Commitments and all other obligations of each Lender to the Borrowers under this Agreement shall terminate. 
  

	19.4	Acceleration of Loan 

 On the service of a notice under paragraph (a)(ii) of Clause 19.2,
either Advance (or part thereof) referred to therein, all accrued interest and all other amounts accrued or owing from any Borrower which is a member of the Group to which the Event of Default relates or any other Security Party under this Agreement
and every other Finance Document securing any of those Advances shall become immediately due and payable or, as the case may be, payable on demand. 
  

	19.5	Multiple notices; action without notice 

 The Facility Agent may serve notices under
paragraphs (a) (i) and (ii) of Clause 19.2 simultaneously or on different dates and it and/or the Security Trustee may take any action referred to in that Clause if no such notice is served or simultaneously with or at any time after the
service of both or either of such notices. 
  

	19.6	Notification of Creditor Parties and Security Parties 

 The Facility Agent shall send to
each Lender, the Swap Bank, the Security Trustee and each Security Party a copy or the text of any notice which the Facility Agent serves on the Borrowers under Clause 19.2; but the notice shall become effective when it is served on the Borrowers,
and no failure or delay by the Facility Agent to send a copy or the text of the notice to any other person shall invalidate the notice or provide the Borrowers or any Security Party with any form of claim or defence. 

  
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	19.7	Lender’s rights unimpaired 

 Nothing in this Clause shall be taken to impair or
restrict the exercise of any right given to individual Lenders or the Swap Bank under a Finance Document or the general law; and, in particular, this Clause is without prejudice to Clause 3.1. 

 

	19.8	Exclusion of Creditor Party Liability 

 No Creditor Party, and no receiver or manager
appointed by the Security Trustee, shall have any liability to any Borrower or a Security Party: 
  

	(a)	for any loss caused by an exercise of rights under, or enforcement of a Security Interest created by, a Finance Document or by any failure or delay to exercise such a right or to enforce such a Security Interest; or


  

	(b)	as mortgagee in possession or otherwise, for any income or principal amount which might have been produced by or realised from any asset comprised in such a Security Interest or for any reduction (however caused) in the
value of such an asset, 

 except that this does not exempt a Creditor Party or a receiver or manager from liability for losses
shown to have been directly or mainly caused by the gross negligence, the dishonesty or the wilful misconduct of such Creditor Party’s own officers and employees or ( as the case may be) such receiver’s or manager’s own partners or
employees. 
  

	19.9	Relevant Persons 

 In this Clause 19, “a Relevant Person” means a
Borrower, the Guarantor and any other Security Party or member of the CMTC Group and, after exercising the Option, any member of the CPLP Group. 
  

	19.10	Interpretation 

 An Event of Default shall be deemed to have occurred under this Clause
19 in relation to a Group if it relates to: 
  

	(a)	a Borrower which is a member of that Group; 

  

	(b)	a Ship owned or to be owned by a member of that Group; 

  

	(c)	a Finance Document that is executed as security for, or to establish any kind of priorities arrangement in relation to, any amount payable by a member of that Group; 


 

	(d)	a Security Party executing such a Finance Document; or 

  

	(e)	generally, that Group or the members of that Group, 

 it being agreed that on the occurrence of
an Event of Default in relation to a Group, no rights whatsoever shall accrue to the Creditor Parties as a result thereof to take action under the Loan Agreement or any other Finance Document in relation to any other Borrower which is a member of
the other Group or its Ship (provided always that no Event of Default has occurred and is continuing at the time in relation to such other Borrower or Ship, 

and in Clause 19.1(f) references to an event of default or a termination event include any event, howsoever described, which is similar to an
event of default in a facility agreement or a termination event in a finance lease; and in Clause 19.1(g) “petition” includes an application. 

  
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	19.11	Position of the Swap Bank 

 Neither the Facility Agent nor the Security Trustee shall be
obliged, in connection with any action taken or proposed to be taken under or pursuant to the foregoing provisions of this Clause 19, to have any regard to the requirements of the Swap Bank except to the extent that the Swap Bank is also a Lender.

  

	20	FEES AND EXPENSES 

  

	20.1	Commitment and upfront fees 

 Each Borrower shall pay to the Facility Agent the fees,
each in the amounts, at the rates, and on the dates and to the Creditor Parties referred to in the Fee Letter Provided that no commitment fee shall be payable to the Facility Agent (for the account of a Lender) on the Commitment of that
Lender for any day on which that Lender is a Defaulting Lender. 
  

	20.2	Costs of negotiation, preparation etc. 

 Each Borrower shall pay to the Facility Agent on
its demand the amount of all expenses incurred by the Facility Agent or the Security Trustee in connection with the negotiation, preparation, execution or registration of any Finance Document or any related document (including, for the avoidance of
doubt, any expenses incurred by the Lenders in obtaining the legal opinions referred to in Schedule 3) or with any transaction contemplated by a Finance Document or a related document. 

 

	20.3	Costs of variations, amendments, enforcement etc. 

 Each Borrower shall pay to the
Facility Agent, on the Facility Agent’s demand, for the account of the Creditor Party concerned, the amount of all expenses incurred by a Lender in connection with: 
  

	(a)	any amendment or supplement (or any proposal for such an amendment or supplement) requested (or, in the case of a proposal, made) by or on behalf of any Borrower and relating to a Finance Document or any other Pertinent
Document; 

  

	(b)	any consent, waiver or suspension of rights by the Lenders, the Swap Bank, the Majority Lenders or the Creditor Party concerned or any proposal for any of the foregoing requested (or, in the case of a proposal, made) by
or on behalf of a Borrower under or in connection with a Finance Document or any other Pertinent Document; 

  

	(c)	the valuation of any security provided or offered under Clause 15 or any other matter relating to such security; or 

  

	(d)	any step taken by the Lender or the Swap Bank concerned with a view to the preservation, protection, exercise or enforcement of any rights or Security Interest created by a Finance Document or for any similar purpose
including, without limitation, any proceedings to recover or retain proceeds of enforcement or any other proceedings following enforcement proceedings until the date all outstanding indebtedness to the Creditor Parties under the Finance Documents, a
Master Agreement and any other Pertinent Document is repaid in full. 

 There shall be recoverable under paragraph (d) the
full amount of all legal expenses, whether or not such as would be allowed under rules of court or any taxation or other procedure carried out under such rules. 
  

	20.4	Documentary taxes 

 The Borrowers shall promptly pay any tax payable on or by reference
to any Finance Document, and shall, on the Facility Agent’s demand, fully indemnify each Creditor Party against any claims, expenses, liabilities and losses resulting from any failure or delay by the Borrowers to pay such a tax. 

  
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	20.5	Certification of amounts 

 A notice which is signed by two officers of a Creditor Party,
which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause 20 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount,
is due shall be prima facie evidence that the amount, or aggregate amount, is due. 
  

	21	INDEMNITIES 

  

	21.1	Indemnities regarding borrowing and repayment of Loan 

 The Borrowers shall fully
indemnify the Facility Agent and each Lender on the Facility Agent’s demand and the Security Trustee on its demand in respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by that Creditor Party,
or which that Creditor Party reasonably and with due diligence estimates that it will incur, as a result of or in connection with: 
  

	(a)	an Advance not being borrowed on the date specified in the Drawdown Notice for any reason other than a default by the Lender claiming the indemnity after the Drawdown Notice has been served in accordance with the
provisions of this Agreement; 

  

	(b)	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the last day of an Interest Period or other relevant period; 


 

	(c)	any failure (for whatever reason) by any Borrower to make payment of any amount due under a Finance Document on the due date or, if so payable, on demand (after giving credit for any default interest paid by any
Borrower on the amount concerned under Clause 7); and 

  

	(d)	the occurrence and/or continuance of an Event of Default or a Potential Event of Default and/or the acceleration of repayment of the Loan under Clause 19, 


and in respect of any tax (other than tax on its overall net income or a FATCA Deduction) for which a Creditor Party is liable in connection
with any amount paid or payable to that Creditor Party (whether for its own account or otherwise) under any Finance Document Provided that, other than in the case of paragraph (d), to the extent that such losses are attributable to a specific
Advance, each Borrower who was an Affected Borrower at the time such losses were incurred shall only be required to indemnify the Creditor Parties for losses attributable to the Advance relative to the Ship owned by it and the other Borrower shall
be required to indemnify the Creditor Parties for losses attributable to the Advance which was not at the relevant time an Advance relating to such Ship. 
  

	21.2	Break Costs 

 If a Lender (the “Notifying Lender”) notifies the Facility
Agent that as a consequence of receipt or recovery of all or any part of the Loan (a “Payment”) on a day other than the last day of an Interest Period applicable to the sum received or recovered the Notifying Lender has or will,
with effect from a specified date, incur Break Costs: 
  

	(a)	the Facility Agent shall promptly notify the Borrowers of a notice it receives from a Notifying Lender under this Clause 21.2; 

  

	(b)	the Borrowers (or, subject to Clause 29.2, each Affected Borrower with respect to each Advance in respect of which the Dropdown Option has been exercised), shall, within 3 Business Days of the Facility Agent’s
demand, pay to the Facility Agent for the account of the Notifying Lender the amount of such Break Costs; and 


  
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	(c)	the Notifying Lender shall, as soon as reasonably practicable, following a request by the Borrowers, provide a certificate confirming the amount of the Notifying Lender’s Break Costs for the Interest Period in
which they accrue, such certificate to be, in the absence of manifest error, conclusive and binding on the Borrower. 

 In this
Clause 21.2, “Break Costs” means, in relation to a Payment the amount (if any) by which: 
  

	 	(i)	the interest which the Notifying Lender, should have received in respect of the sum received or recovered from the date of receipt or recovery of such Payment to the last day of the then current Interest Period
applicable to the sum received or recovered had such Payment been made on the last day of such Interest Period; 

 exceeds 

 

	 	(ii)	the amount which the Notifying Lender, would be able to obtain by placing an amount equal to such Payment on deposit with a leading bank in the London interbank market for a period commencing on the Business Day
following receipt or recovery of such Payment (as the case may be) and ending on the last day of the then current Interest Period applicable to the sum received or recovered. 


 

	21.3	Other breakage costs 

 Without limiting its generality, Clause 21.1 covers any claim,
expense, liability or loss, including a loss of prospective profit, incurred by a Lender in borrowing, liquidating or re-employing deposits from third parties acquired, contracted for or arranged to fund,
effect or maintain all or any part of its Contribution and/or any overdue amount (or an aggregate amount which includes its Contribution or any overdue amount) other than claims, expenses, liabilities and losses which are shown to have been directly
and mainly caused by the gross negligence or wilful misconduct of the officers or employees of the Creditor Party concerned. 
  

	21.4	Miscellaneous indemnities 

 The Borrowers shall fully indemnify each Creditor Party
severally on their respective demands, without prejudice to any of their other rights under any of the Finance Documents, in respect of all claims, proceedings, liabilities, taxes, losses and expenses of every kind which may be made or brought
against or sustained or incurred by a Creditor Party, in any country, as a result of or in connection with: 
  

	(a)	any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Facility Agent, the Security Trustee or any other Creditor Party or by any receiver appointed under a
Finance Document (each an “Indemnified Party”); 

  

	(b)	any claim, action, civil penalty or fine against, any settlement, and any other kind of loss or liability, and all reasonable costs and expenses (including reasonable counsel fees and disbursements) incurred by any
Indemnified Party as a result of negligent conduct of any Borrower, any Security Party, any member of the Group(s), or any of their partners, directors, officers, employees, agents or advisors, that violates any Sanctions; 


 

	(c)	investigating any event which the Creditor Party concerned reasonably believes constitutes an Event of Default or Potential Event of Default; 


 

	(d)	acting or relying on any notice, request or instruction which the Creditor Party concerned reasonably believes to be genuine, correct and appropriately authorised; or 


  
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	(e)	any other Pertinent Matter, 

 other than claims, expenses, liabilities and losses which are
shown to have been directly and mainly caused by the dishonesty, gross negligence or wilful misconduct of the officers or employees of the Creditor Party concerned. 

Without prejudice to its generality, Clause 21.1 and this Clause 21.4 cover any claims, expenses, liabilities and losses which arise, or are
asserted, under or in connection with any law relating to safety at sea, the ISM Code, the ISPS Code, any Environmental Law or Sanctions. 
  

	21.5	Environmental Indemnity 

 Without prejudice to its generality, Clause 21.3 covers any
claims, demands, proceedings, liabilities, taxes, losses or expenses of every kind which arise, or are asserted, under or in connection with any law relating to safety at sea, pollution or the protection of the environment, the ISM Code or the ISPS
Code. 
  

	21.6	Currency indemnity 

 If any sum due from any Borrower or any Security Party to a Creditor
Party under a Finance Document or under any order, award or judgment relating to a Finance Document (a “Sum”) has to be converted from the currency in which the Finance Document provided for the Sum to be paid (the
“Contractual Currency”) into another currency (the “Payment Currency”) for the purpose of: 
  

	(a)	making, filing or lodging any claim or proof against any Borrower or any Security Party, whether in its liquidation, any arrangement involving it or otherwise; or 


 

	(b)	obtaining an order, judgment or award from any court or other tribunal in relation to any litigation or arbitration proceedings; or 

  


	(c)	enforcing any such order, judgment or award, 

 the Borrowers shall as an independent obligation,
within 3 Business Days of demand, indemnify the Creditor Party to whom that Sum is due against any cost, loss or liability arising when the payment actually received by that Creditor Party is converted at the available rate of exchange back into the
Contractual Currency including any discrepancy between (A) the rate of exchange actually used to convert the Sum from the Payment Currency into the Contractual Currency and (B) the available rate of exchange. 

In this Clause 21.6, the “available rate of exchange” means the rate at which the Creditor Party concerned is able at the
opening of business (London time) on the Business Day after it receives the Sum to purchase the Contractual Currency with the Payment Currency. 

The Borrowers waive any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in
which it is expressed to be payable. 
 If any Creditor Party receives any Sum in a currency other than the Contractual Currency, the
Borrowers shall indemnify the Creditor Party concerned against any cost, loss or liability arising directly or indirectly from any conversion of such Sum to the Contractual Currency. 

This Clause 21.6 creates a separate liability of each Borrower which is distinct from its other liabilities under the Finance Documents and
which shall not be merged in any judgment or order relating to those other liabilities. 

  
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	21.7	Application to Master Agreements 

 For the avoidance of doubt, Clause 21.4 does not apply
in respect of sums due from a Borrower to the Swap Bank under or in connection with any Master Agreement as to which sums the provisions of section 8 (Contractual Currency) of that Master Agreement shall apply. 

 

	21.8	Certification of amounts 

 A notice which is signed by 2 officers of a Creditor Party,
which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount,
is due shall be prima facie evidence that the amount, or aggregate amount, is due. 
  

	21.9	Sums deemed due to a Lender 

 For the purposes of this Clause 21, a sum payable by a
Borrower to the Facility Agent or the Security Trustee for distribution to a Lender shall be treated as a sum due to that Lender. 
  

	22	NO SET-OFF OR TAX DEDUCTION 

  

	22.1	No deductions 

 All payments to be made by any Borrower under the Finance Documents shall
be calculated and be made without (and free and clear of any deduction for set-off or counterclaim). 
  

	22.2	Grossing-up for taxes 

 If any Borrower, the
Guarantor, or the Substitute Guarantor is required by law, regulation or regulatory requirement to make a tax deduction from any payment due under a Finance Document: 
  

	(a)	that Borrower shall and shall procure that the Guarantor, or the Substitute Guarantor shall notify the Facility Agent as soon as it becomes aware of the requirement; 


 

	(b)	the amount due in respect of the payment shall be increased by the amount necessary to ensure that, after the making of such tax deduction, each Creditor Party receives and retains (free from any liability relating to
the tax deduction) a net amount which, after the tax deduction, is equal to the full amount which it would have received had no such tax deduction been required to be made; and 


 

	(c)	the Borrowers, the Guarantor, or the Substitute Guarantor shall pay the full amount of the tax required to be deducted to the appropriate taxation authority promptly in accordance with the relevant law, regulation or
regulatory requirement, and in any event before any fine or penalty arises, 

 Provided that if a payment from a
Borrower which is not an Affected Borrower is required to be increased under this Clause 22.2, such increase shall not constitute an obligation of any Affected Borrower and Provided further that if a payment from an Affected Borrower is
required to be increased under this Clause 22.2, such increase shall not constitute an obligation of any Borrower which is not an Affected Borrower. 
  

	22.3	Indemnity and evidence of payment of taxes 

 The Borrowers shall fully indemnify each
Creditor Party on the Facility Agent’s demand in respect of all claims, expenses, liabilities and losses incurred by any Creditor Party by reason of: 

  
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	(a)	any failure of a Borrower to make any tax deduction; or 

  

	(b)	any increased payment not being made on the due date for such payment in accordance with Clause 22.2; or 

  

	(c)	without prejudice to the provisions of Clause 22.2, any payment on account of tax required to be made by a Creditor Party solely as a result of that Creditor Party’s entry into any Finance Document (not being a tax
imposed on the net income of that Creditor Party by the jurisdiction in which it is incorporated, or the jurisdiction in which it is located or on the capital of that Creditor Party employed in such jurisdiction or jurisdictions) on any sum received
or receivable under the Finance Documents (including, without limitation, any sum received or receivable under this Clause 22.3) or any liability in respect of any such payment is asserted, imposed, levied or assessed against that Creditor Party.


 Within 30 days after making any tax deduction, the Borrowers shall deliver to the Facility Agent any receipts, certificates
or other documentary evidence satisfactory to the Facility Agent that the tax had been paid to the appropriate taxation authority. 
  

	22.4	Exclusion of tax on overall net income 

 In this Clause 22 “tax
deduction” means any deduction or withholding from any payment due under a Finance Document for or on account of any present or future tax except tax on a Creditor Party’s overall net income. 

 

	22.5	Application to Master Agreements 

 For the avoidance of doubt, Clause 22 does not apply
in respect of sums due from any Borrower to the Swap Bank under or in connection with a Master Agreement as to which sums the provisions of section 2(d) (Deduction or Withholding for Tax) of a Master Agreement shall apply. 

 

	22.6	FATCA 

  

	(a)	FATCA Information: 

  

	 	(i)	Subject to paragraph (iii) below, each party to a Finance Document shall, within 10 Business Days of a reasonable request by another party to the Finance Documents: 


 

	 	(A)	confirm to that other party whether it is a FATCA Exempt Party or is not a FATCA Exempt Party; 

  

	 	(B)	supply to the requesting party such forms, documentation and other information relating to its status under FATCA (including information required under the Treasury regulations or other official guidance including
intergovernmental agreements) as the requesting party reasonably requests for the purposes of such requesting party’s compliance with FATCA; and 

  

	 	(C)	supply to that other party such forms, documentation and other information relating to its status as that other party reasonably requests for the purposes of that other party’s compliance with any other law,
regulation, or exchange of information regime. 

  

	 	(ii)	If a party to any Finance Document confirms to another party pursuant to Clause 22.6(a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt
Party, that party shall notify that other party reasonably promptly. 


  
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	 	(iii)	Sub-clause (i) above shall not oblige any Creditor Party to do anything which would or might in its reasonable opinion constitute a breach of any law or regulation, any
policy of that party, any fiduciary duty or any duty of confidentiality, or to disclose any confidential information (including, without limitation, its tax returns and calculations). 


 

	 	(iv)	If any Borrower is a US Tax Obligor, or where the Facility Agent reasonably believes that its obligations under FATCA or any other applicable law or regulation require it, each Lender shall, within ten Business Days of:


  

	 	(A)	where that Borrower is a US Tax Obligor and the relevant Lender was a lender on the date of this Agreement, the date of this Agreement; 


 

	 	(B)	where that Borrower is a US Tax Obligor and the relevant Lender was not a lender on the date of this Agreement, the later of: 

  

	 	(1)	the proposed transfer date specified in the relevant assignment agreement or Transfer Certificate; and 

  

	 	(2)	the date on which the Facility Agent executes the relevant assignment agreement or Transfer Certificate; or 

  

	 	(C)	the date of a request from the Facility Agent,     

 supply to the Facility
Agent: 
  

	 	(1)	a withholding certificate on Form W-8 or Form W-9 (or any successor form) (as applicable); or 


 

	 	(2)	any withholding statement and other documentation, authorisations and waivers as the Facility Agent may require to certify or establish the status of such Lender under FATCA or that other law or regulation.


 The Facility Agent shall provide any withholding certificate, withholding statement, documentation, authorisations and
waivers it receives from a Lender pursuant to this paragraph (iv) to the Borrowers and shall be entitled to rely on any such withholding certificate, withholding statement, documentation, authorisations and waivers provided without further
verification. The Facility Agent shall not be liable for any action taken by it under or in connection with this paragraph (iv). 
  

	 	(v)	If a party to any Finance Document fails to confirm its status or to supply forms, documentation or other information requested in accordance with sub-clause (i) above
(including, for the avoidance of doubt, where sub-clause (iii) above applies), then such party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA
Exempt Party until such time as the party in question provides the requested confirmation, forms, documentation or other information. 

  

	(b)	FATCA Deduction: 

  

	 	(i)	Each party to a Finance Document may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no such party shall be required to increase any
payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. 


  
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	 	(ii)	Each party to a Finance Document shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the party to whom it is
making the payment and, in addition, shall notify the Borrowers and the Facility Agent and the Facility Agent shall notify the other Creditor Parties. 

  

	22.7	Stamp taxes 

 The Borrowers must pay and indemnify each Creditor Party against any stamp
duty, registration or other similar Tax payable by that Creditor Party in connection with the entry into, performance or enforcement of any Finance Document. 
  

	22.8	Value added taxes 

 Any amount (including costs and expenses) payable under a Finance
Document by the Borrowers is exclusive of any value added tax or any other tax of a similar nature which might be chargeable in connection with that amount. If any such tax is chargeable, the Borrowers must pay to the Facility Agent (in addition to
and at the same time as paying that amount) an amount equal to the amount of that tax. 
  

	23	ILLEGALITY, ETC 

  

	23.1	Illegality 

 If it becomes unlawful and/or contrary to, or declared by any Sanctions
Authority to be contrary to, Sanctions, in any applicable jurisdiction for a Lender (the “Notifying Lender”) to perform any of its obligations as contemplated by this Agreement or to fund, issue or maintain its participation in the
Loan or it becomes unlawful and/or contrary to, or declared by any Sanctions Authority to be contrary to, Sanctions for any Affiliate of a Lender for that Lender to do so: 
  

	(a)	that Notifying Lender shall promptly notify the Facility Agent upon becoming aware of that event; 

  

	(b)	upon the Facility Agent notifying the Borrowers, the Commitment of that Notifying Lender will be immediately cancelled; and 

  

	(c)	to the extent that the Notifying Lender’s participation has not been transferred pursuant to clause 8 each Borrower shall repay that Notifying Lender’s participation in the Loan made to the Borrower(s) on the
last day of the Interest Period for each Loan occurring after the Facility Agent has notified the Borrowers or, if earlier, the date specified by the Notifying Lender in the notice delivered to the Facility Agent (being no earlier than the last day
of any applicable grace period permitted by law) and that Notifying Lender’s corresponding Commitment(s) shall be cancelled in the amount of the participations repaid. 


 

	24	INCREASED COSTS 

  

	24.1	Increased costs 

 This Clause 24 applies if a Lender or any affiliate of a Lender (the
“Notifying Lender”) notifies the Facility Agent that the Notifying Lender considers that as a result of: 
  

	(a)	the introduction or change after the date of this Agreement of a law or regulation or a change after the date of this Agreement in the manner in which a law or regulation is interpreted or applied (disregarding any
effect which relates to the application to payments under this Agreement of a tax on a Lender’s overall net income); or 


  
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	(b)	complying with any law or regulation (including any which relates to capital adequacy or liquidity controls or which affects the manner in which the Notifying Lender allocates capital resources to its obligations under
this Agreement) which is made, introduced, or changed, or the interpretation or application of which is changed, after the date of this Agreement; or 

  

	(c)	the implementation or application of or compliance with Basel III, CRD IV or CRR or any law or regulation that implements or applies Basel III, CRD IV or CRR (whether such implementation, application or compliance is by
a government, regulator or the Notifying Lender or a parent company or an affiliate of it) to the extent such increased costs were not capable of being calculated with sufficient accuracy prior to the date of this Agreement due to a lack of clarity
or detail in Basel III, CRD IV, CRR and/or any related information from a banking regulator available on the date of this Agreement. 

  

	(d)	in each case when compared to the cost of complying with such regulations as determined by the Notifying Lender (or parent company or affiliate of it) on the date of this Agreement (whether such implementation,
application or compliance is by a government, regulator, supervisory authority, the Notifying Lender or its holding company), 


the Notifying Lender (or a parent company or affiliate of it) has incurred or will incur an “increased cost”. 

 

	24.2	Meaning of “increased costs” 

 In this Clause 24, “increased
costs” means, in relation to a Notifying Lender: 
  

	(a)	an additional or increased cost; 

  

	(b)	a reduction of any amount due and payable to the Notifying Lender under this Agreement or in the effective rate of return which such a payment represents to the Notifying Lender or on its overall capital;


  

	(c)	an additional or increased cost of funding all or maintaining all or any of the advances comprised in a class of advances formed by or including the Notifying Lender’s Contribution, 


(and in the case of paragraphs (a) to (c) inclusive, which increased costs is incurred or suffered the Notifying Lender to the extent that
it is attributable to the it having entered into its Commitment or funding or performing its obligations under any Finance Document); or 
  

	(d)	a liability to make a payment, or a return foregone, which is calculated by reference to any amounts received or receivable by the Notifying Lender under this Agreement, 


but not an item attributable to a change in the rate of tax on the overall net income of the Notifying Lender (or a parent company or affiliate
of it), or an item covered by the indemnity for tax in Clause 21.1, or by Clause 22, or attributable to a FATCA Deduction required to be made by a Party, or attributable to the implementation or application of or compliance with the
“International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement (but excluding any
amendment arising out of Basel III) (“Basel II”) or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, a Creditor Party or any of its
Affiliates);. 
 For the purposes of this Clause 24.2 the Notifying Lender may in good faith allocate or spread costs and/or losses among its
assets and liabilities (or any class of its assets and liabilities) on such basis as it considers appropriate. 

  
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	24.3	Notification to Borrowers of claim for increased costs 

 The Facility Agent shall
promptly notify the Borrowers and the Security Parties of the notice which the Facility Agent received from the Notifying Lender under Clause 24.1. 
  

	24.4	Payment of increased costs 

 The Borrowers (or, subject to Clause 29.2, each applicable
Affected Borrower), shall pay to the Facility Agent, on the Facility Agent’s demand, for the account of the Notifying Lender the amounts which the Facility Agent from time to time notifies the Borrowers (or each relevant Affected Borrower),
that the Notifying Lender has specified to be necessary to compensate the Notifying Lender for the increased cost. 
  

	24.5	Notice of prepayment 

 If the Borrowers are (or, subject to Clause 29.2, each applicable
Affected Borrower is) not willing to continue to compensate the Notifying Lender for the increased cost under Clause 24.4, the Borrowers (or each Affected Borrower) may give the Facility Agent not less than 15 days’ notice of its intention to
prepay the Notifying Lender’s Contribution at the end of an Interest Period. 
  

	24.6	Prepayment; termination of Commitment 

 A notice under Clause 24.5 shall be irrevocable;
the Facility Agent shall promptly notify the Notifying Lender of the Borrowers’ (or each relevant Affected Borrower’s) notice of intended prepayment; and: 
  

	(a)	on the date on which the Facility Agent serves that notice, the Commitment of the Notifying Lender shall be cancelled; and 

  

	(b)	on the date specified in its notice of intended prepayment, the Borrowers (or each relevant Affected Borrower) shall prepay (without premium or penalty) the Notifying Lender’s Contribution, together with accrued
interest thereon at the applicable rate plus the Margin. 

  

	24.7	Application of prepayment 

 Clause 8 shall apply in relation to the prepayment. 

 

	25	SET-OFF 

  

	25.1	Application of credit balances 

 Each Creditor Party may without prior notice: 

 

	(a)	apply any balance (whether or not then due) which at any time stands to the credit of any account in the name of the Borrowers at any office in any country of that Creditor Party in or towards satisfaction of any sum
then due from the Borrowers to that Creditor Party under any of the Finance Documents; and 

  

	(b)	for that purpose: 

  

	 	(i)	break, or alter the maturity of, all or any part of a deposit of the Borrowers; 

  

	 	(ii)	convert or translate all or any part of a deposit or other credit balance into Dollars; and 

  

	 	(iii)	enter into any other transaction or make any entry with regard to the credit balance which the Creditor Party concerned considers appropriate. 


  
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	25.2	Existing rights unaffected 

 No Creditor Party shall be obliged to exercise any of its
rights under Clause 25.1; and those rights shall be without prejudice and in addition to any right of set-off, combination of accounts, charge, lien or other right or remedy to which a Creditor Party is
entitled (whether under the general law or any document). 
  

	25.3	Sums deemed due to a Lender 

 For the purposes of this Clause 25, a sum payable by the
Borrowers to the Facility Agent or the Security Trustee for distribution to, or for the account of, a Lender shall be treated as a sum due to that Lender; and each Lender’s proportion of a sum so payable for distribution to, or for the account
of, the Lenders shall be treated as a sum due to such Lender. 
  

	25.4	No Security Interest 

 This Clause 25 gives the Creditor Parties a contractual right of set-off only, and does not create any equitable charge or other Security Interest over any credit balance of the Borrowers. 
  

	26	TRANSFERS AND CHANGES IN LENDING OFFICES 

  

	26.1	Transfer by the Borrowers 

 The Borrowers may not assign or transfer any of their rights,
liabilities or obligations under any Finance Document. 
  

	26.2	Transfer by a Lender 

 Subject to Clause 26.4, a Lender (the “Transferor
Lender”) may, at any time, cause: 
  

	(a)	its rights in respect of all or part of its Contribution; or 

  

	(b)	its obligations in respect of all or part of its Commitment; or 

  

	(c)	a combination of (a) and (b); or 

  

	(d)	all or part of its credit risk under this Agreement and the other Finance Documents, 

 to be
syndicated to or, (in the case of its rights) assigned, pledged or transferred to, or (in the case of its obligations) pledged or assumed by, any third party (a “Transferee Lender”) by delivering to the Facility Agent a completed
certificate in the form set out in Schedule 4 with any modifications approved or required by the Facility Agent (a “Transfer Certificate”) executed by the Transferor Lender and the Transferee Lender. 

Prior to exercising its rights pursuant to this Clause 26.2, the Transferor Lender may, other than in the case of a transfer contemplated in
subparagraphs (i)(A) or (B) below, shall first give each other Lender the option (through a notice in writing) to receive the benefit of a syndication or any assignment, pledge, transfer or assumption of its Contribution (or the relevant
thereof), its Commitment (or the relevant part thereof) or a combination of both and, Provided that there is no Event of Default in existence at the relevant time, the Borrowers the right to propose a Transferee Lender to the Transferor
Lender. Each Lender shall have 5 Business Days from the date of the Transferor Lender’s notice to advise the Transferor Lender in writing if it shall exercise such option. If any Lender(s) exercise(s) such option within the aforementioned 5-Business Day period, the Transferor Lender(s) and the Transferee Lender(s) shall execute and deliver to the Facility Agent a completed certificate(s) in the form set out in Schedule 4 with any modifications
approved or required by the Facility Agent. 

  
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 However any rights and obligations of the Transferor Lender in its capacity as Facility Agent or
Security Trustee will have to be dealt with separately in accordance with the Agency and Trust Agreement. All costs and expenses relating to a transfer effected pursuant to this Clause 26.2 shall be borne by the Transferee Lender. 

A transfer pursuant to this Clause 26.2 shall: 
  

	 	(i)	be effected without the consent of the Borrowers; 

  

	 	(A)	following the occurrence of an Event of Default; 

  

	 	(B)	if such transfer is to a subsidiary or any other company or financial institution which is in the same ownership or control as one of the Lenders; and 


 

	 	(ii)	if: 

  

	 	(A)	a Transferor Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its facility office; and 


 

	 	(B)	as a result of circumstances existing at the date the assignment, transfer or change occurs, a Security Party would be obliged to make a payment to the Transferee Lender or Lender acting through its new facility office
under Clause 21 or Clause 24 

 then the Transferee Lender or Lender acting through its new facility office is only entitled
to receive payment under those Clauses to the same extent as the Transferor Lender or Lender acting through its previous facility office would have been if the assignment, transfer or change had not occurred. This paragraph (i) shall not
apply: 
  

	 	(iii)	in all other circumstances, including without limitation in the case of a transfer to any other bank or financial institution regularly engaged in providing shipping loans, shipping securities or shipping financial
assets, first class international bank(s) or financial institution(s), trust, fund or capital investment company, require the consent of the Borrowers (such consent not to be unreasonably withheld, conditioned or delayed) which should be provided
within 5 days otherwise such consent shall be deemed to have been provided. 

  

	(e)	In the case of a transfer to be effected in the circumstances other than those referred to in subparagraphs (A) and (B) of Clause 26.2(d)(i), the Borrowers shall have the option, exercisable within 10 Business Days
of a Lender notifying the Borrowers that it wishes to effect a transfer pursuant to this Clause 26.2, give written notice (the “Borrowers’ Notice”) of its intention to prepay the Contribution which the Lender is planning to
transfer. The prepayment shall be in an amount equal to the lesser of (i) the par value of the Contribution to be transferred and (ii) the amount offered by the proposed Transferee Lender to acquire the Contribution which is to be
transferred. The Borrowers shall effect such prepayment within 10 Business Days of the date of Borrowers’ Notice. 

  

	26.3	Transfer Certificate, delivery and notification 

 As soon as reasonably practicable after
a Transfer Certificate is delivered to the Facility Agent, it shall (unless it has reason to believe that the Transfer Certificate may be defective): 
  

	(a)	ensure that all relevant “know your customer” requirements in connection with the Transferee Lender are complied with under all applicable laws and regulations and shall promptly notify the other Lenders and
the Transferee Lender accordingly; 


  
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	(b)	sign the Transfer Certificate on behalf of itself the Borrowers, the Security Parties, the Security Trustee and each of the other Lenders and the Swap Bank; 


 

	(c)	on behalf of the Transferee Lender, send to the Borrowers and each Security Party letters or faxes notifying them of the Transfer Certificate and attaching a copy of it; and 


 

	(d)	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b) above. 

  

	26.4	Effective Date of Transfer Certificate 

 A Transfer Certificate becomes effective on the
date, if any, specified in the Transfer Certificate as its effective date Provided that it is signed by the Facility Agent under Clause 26.3 on or before that date. 
  

	26.5	No transfer without Transfer Certificate 

 No assignment or transfer of any right or
obligation of a Lender under any Finance Document is binding on, or effective in relation to, the Borrowers, any Security Party, the Facility Agent or the Security Trustee unless it is effected, evidenced or perfected by a Transfer Certificate. 

 

	26.6	Lender re-organisation; waiver of Transfer Certificate 


However, if a Lender enters into any merger, de-merger or other reorganisation as a result of which all
its rights or obligations vest in another person (the “successor”), the Facility Agent may, if it sees fit, by notice to the successor and the Borrowers and the Security Trustee waive the need for the execution and delivery of a
Transfer Certificate; and, upon service of the Facility Agent’s notice, the successor shall become a Lender with the same Commitment and Contribution as were held by the predecessor Lender. 

 

	26.7	Effect of Transfer Certificate 

 A Transfer Certificate takes effect in accordance with
English law as follows: 
  

	(a)	to the extent specified in the Transfer Certificate, all rights and interests (present, future or contingent) which the Transferor Lender has under or by virtue of the Finance Documents (other than a Master Agreement)
are assigned to the Transferee Lender absolutely, free of any defects in the Transferor Lender’s title and of any rights or equities which the Borrowers or any Security Party had against the Transferor Lender; 


 

	(b)	the Transferor Lender’s Commitment is discharged to the extent specified in the Transfer Certificate; 

  

	(c)	the Transferee Lender becomes a Lender with the Contribution previously held by the Transferor Lender and a Commitment of an amount specified in the Transfer Certificate; 


 

	(d)	the Transferee Lender becomes bound by all the provisions of the Finance Documents (other than a Master Agreement) which are applicable to the Lenders generally, including those about
pro-rata sharing and the exclusion of liability on the part of, and the indemnification of, the Facility Agent and the Security Trustee and, to the extent that the Transferee Lender becomes bound by those
provisions (other than those relating to exclusion of liability), the Transferor Lender ceases to be bound by them; 

  

	(e)	any part of the Loan which the Transferee Lender advances after the Transfer Certificate’s effective date ranks in point of priority and security in the same way as it would have ranked had it been advanced by the
transferor, assuming that any defects in the transferor’s title and any rights or equities of the Borrowers or any Security Party against the Transferor Lender had not existed; 


  
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	(f)	the Transferee Lender becomes entitled to all the rights under the Finance Documents (other than a Master Agreement) which are applicable to the Lenders generally, including but not limited to those relating to the
Majority Lenders and those under Clause 5.7 and Clause 20, and to the extent that the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to be entitled to them; and 


 

	(g)	in respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document or any misrepresentation made in or in connection with a Finance Document (other than a Master Agreement), the
Transferee Lender shall be entitled to recover damages by reference to the loss incurred by it as a result of the breach or misrepresentation, irrespective of whether the original Lender would have incurred a loss of that kind or amount.


 The rights and equities of the Borrowers or any Security Party referred to above include, but are not limited to, any right
of set off and any other kind of cross-claim. 
  

	26.8	Maintenance of register of Lenders 

 During the Security Period, the Facility Agent shall
maintain a register in which it shall record the name, Commitment, Contribution and administrative details (including the lending office) from time to time of each Lender holding a Transfer Certificate and the effective date (in accordance with
Clause 26.4 or, as the case may be, Clause 2.5) of the Transfer Certificate; and the Facility Agent shall make the register available for inspection by any Lender, the Security Trustee and the Borrowers during normal banking hours, subject to
receiving at least 3 Business Days prior notice. 
  

	26.9	Reliance on register of Lenders 

 The entries on that register shall, in the absence of
manifest error, be conclusive in determining the identities of the Lenders and the amounts of their Commitments and Contributions and the effective dates of Transfer Certificates and may be relied upon by the Facility Agent and the other parties to
the Finance Documents for all purposes relating to the Finance Documents. 
  

	26.10	Authorisation of Facility Agent and conditions to sign Transfer Certificates 

 The
Borrowers, the Security Trustee, each Lender and the Swap Bank irrevocably authorises the Facility Agent to sign Transfer Certificates on its behalf. The Borrowers and each Security Party irrevocably agree to the transfer procedures set out in this
Clause 26 and to the extent the cooperation of the Borrowers and/or any Security Party shall be required to effect any such transfer, the Borrowers and such Security Party shall take all necessary steps to afford such cooperation. 

The Facility Agent shall only be obliged to execute a Transfer Certificate as soon as it is satisfied that all “know your customer”
requirements are complied with under all applicable laws and regulations in connection with the Transferee Lender. 
  

	26.11	Registration fee 

 In respect of any Transfer Certificate, the Facility Agent shall be
entitled to recover a registration fee of $2,500 from the Transferor Lender or (at the Facility Agent’s option) the Transferee Lender. 
  

	26.12	Sub-participation; subrogation assignment 

 A
Lender may sub-participate all or any part of its rights and/or obligations under or in connection with the Finance Documents (other than a Master Agreement) without the consent of, or any notice to, the
Borrowers, any Security Party, the Facility Agent or the 

  
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Security Trustee or any other Creditor Party; and the Lenders may assign, in any manner and terms agreed by the Majority Lenders, the Facility Agent and the Security Trustee, all or any part of
those rights to an insurer or surety who has become subrogated to them. 
  

	26.13	Disclosure of information 

 A Lender may, without the prior consent of the Borrowers or
any Security Party, disclose to: 
  

	(a)	a potential Transferee Lender or sub participant as well as, where relevant, to rating agencies, trustees and accountants; 

  

	(b)	any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any
relevant stock exchange or pursuant to any applicable law or regulation; 

  

	(c)	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes; or 


 

	(d)	to whom or for whose benefit that Lender charges, assigns or otherwise creates a Security Interest (or may do so) pursuant to Clause 26.16, 


any financial or other information which that Lender has received in relation to the Loan, the Borrowers, any Security Party or their affairs
and collateral or security provided under or in connection with any Finance Document, their financial circumstances and any other information whatsoever, as that Lender may deem reasonably necessary or appropriate in connection with the potential
syndication, the assessment of the credit risk and the ongoing monitoring of the Loan by any potential Transferee Lender and that Lender shall be released from its obligation of secrecy and from banking confidentiality. The Lender concerned and the
Borrowers shall require that any such potential Transferee Lender, sub-participant, rating agency, trustee or accountant signs a confidentiality agreement. The Borrowers shall, and shall procure that any other
Security Party shall: 
  

	 	(i)	provide the Creditor Parties (or any of them) with all information deemed, reasonably, necessary by the Creditor Parties (or any of them) for the purposes of any transfer or
sub-participation to be effected pursuant to this Clause 26; 

  

	 	(ii)	procure that the directors and offices of the Borrowers or any Security Party are available to participate in any meeting with any Transferee Lender or any rating agency at such times and places as the Creditor Parties
may reasonably request on notice (to be served on the Borrowers reasonably in advance) to the Borrowers or that Security Party; and 

  

	 	(iii)	permit any Transferee Lender to board any Ship at all reasonable times to inspect its condition with reasonable notice to the Borrowers (after taking into consideration the relevant Ship’s schedule).


  

	26.14	Change of lending office 

 A Lender may change its lending office by giving prior notice
to the Facility Agent and the Borrowers and the change shall become effective on the later of: 
  

	(a)	the date on which the Facility Agent receives the notice; and 

  

	(b)	the date, if any, specified in the notice as the date on which the change will come into effect. 


  
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	26.15	Notification 

 On receiving such a notice, the Facility Agent shall notify the Borrowers
and the Security Trustee; and, until the Facility Agent receives such a notice, it shall be entitled to assume that a Lender is acting through the lending office of which the Facility Agent last had notice. 

 

	26.16	Security over Lenders’ rights 

 In addition to the other rights provided to Lenders
under this Clause 26, each Lender may without consulting with or obtaining consent from the Borrowers or any Security Party at any time charge, assign or otherwise create a Security Interest in or over (whether by way of collateral or otherwise) all
or any of its rights under any Finance Document (other than a Master Agreement) to secure obligations of that Lender including, without limitation: 
  

	(a)	any charge, assignment or other Security Interest to secure obligations to a federal reserve or central bank; and 

  

	(b)	in the case of any Lender which is a fund, any charge, assignment or other Security Interest granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as
security for those obligations or securities; 

 except that no such charge, assignment or Security Interest shall: 

 

	 	(i)	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the Lender as a party to any of the Finance Documents;
or 

  

	 	(ii)	require any payments to be made by a Borrower or any Security Party or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents.


  

	26.17	Replacement of Reference Bank 

 If the Reference Bank ceases to be a Lender or is unable
on a continuing basis to supply quotations for the purposes of Clause 5 then, unless the Borrowers, the Facility Agent and the Majority Lenders otherwise agree, the Facility Agent, acting on the instructions of the Majority Lenders, and after
consulting the Borrower, shall appoint another bank (whether or not a Lender) to be a replacement Reference Bank; and, when that appointment comes into effect, the first-mentioned Reference Bank’s
appointment shall cease to be effective. 
  

	26.18	Replacement of a Defaulting Lender 

  

	(a)	If: 

  

	 	(i)	any Lender becomes a Defaulting Lender; or 

  

	 	(ii)	a Borrower becomes obliged to repay any amount in accordance with Clause 23 (Illegality) or to pay any additional amounts pursuant to Clause 24 (Increased Costs), Clause 22.2 (Grossing-up for taxes) or Clause 22.3 (Indemnity and evidence of payment of taxes) to any Lender, 


the Borrowers may , at any time a Lender has become and continues to be a Defaulting Lender, by giving 5 Business Days’ prior written
notice to the Facility Agent and such Lender replace such Lender by requiring such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to this Clause 26 all (and not part only) of its rights and obligations under
this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a “Replacement Lender”) selected by the Borrowers, and which confirms its willingness to assume


  
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and does assume all the obligations, or all the relevant obligations, of the transferring Lender in accordance with this Clause 26 for a purchase price in cash payable at the time of transfer
which is in an amount equal to the outstanding principal amount of such Lender’s Contribution and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents; 

 

	(b)	of the replacement of a Defaulting Lender pursuant to this Clause 26.18 shall be subject to the following conditions: 

  

	 	(i)	the Borrowers shall have no right to replace the Facility Agent or Security Trustee; 

  

	 	(ii)	neither the Facility Agent nor the Defaulting Lender shall have any obligation to the Borrowers to find a Replacement Lender; 

  

	 	(iii)	the transfer must take place no later than 7 Business Days after the notice referred to in paragraph (a) above; 

  

	 	(iv)	in no event shall the Defaulting Lender be required to pay or surrender to such Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents; and 


 

	 	(v)	the Defaulting Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (a) above once it is satisfied that it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations in relation to that transfer. 

  

	(c)	The Defaulting Lender shall perform the checks described in paragraph (b)(v) above as soon as reasonably practicable following delivery of a notice referred to in paragraph (a) above and shall notify the Facility
Agent and the Borrowers when it is satisfied that it has complied with those checks. 

  

	26.19	Excluded Commitments 

 If: 

 

	(a)	any Defaulting Lender fails to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote of Lenders under the terms of this Agreement within 10
Business Days of that request being made; 

  

	(b)	or any Lender which is not a Defaulting Lender fails to respond to such a request (other than an amendment, waiver or consent referred to in paragraphs (i), (ii) and (iii) of Clause 27.2 (Exceptions) or such a vote
within 10 Business Days of that request being made 

 (unless in either case the Borrowers and the Facility Agent agree to a
longer time period in relation to any request): 
  

	 	(i)	its Commitment shall not be included for the purpose of calculating the Total Commitments under the Loan when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total
Commitments has been obtained to approve that request; and 

  

	 	(ii)	its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request. 


 

	26.20	Disenfranchisement of Defaulting Lenders 

  

	(a)	For so long as a Defaulting Lender has any undrawn Commitment, in ascertaining: 


  
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	 	(i)	the Majority Lenders; or 

  

	 	(ii)	whether: 

  

	 	(A)	any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments under the Loan; or 

  

	 	(B)	the agreement of any specified group of Lenders, 

 has been obtained to approve any request for
a consent, waiver, amendment or other vote of Lenders under the Finance Documents, 
 that Defaulting Lender’s Commitment under the Loan
will be reduced by the amount of its undrawn Commitment under the Loan and, to the extent that that reduction results in that Defaulting Lender’s Commitment being zero, that Defaulting Lender shall be deemed not to be a Lender for the purposes
of paragraphs (i) and (ii) above. 
  

	(b)	For the purposes of this Clause 26.20 the Facility Agent may assume that the following Lenders are Defaulting Lenders: 

  

	 	(i)	any Lender which has notified the Facility Agent that it has become a Defaulting Lender; 

  

	 	(ii)	any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of “Defaulting Lender” has occurred,


 unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably
requested by the Facility Agent) or the Facility Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender. 
  

	27	VARIATIONS AND WAIVERS 

  

	27.1	Required consents 

  

	(a)	Subject to Clause 27.2 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Borrowers and any such amendment or waiver will be binding on all
Creditor Parties and the Borrowers. 

  

	(b)	Any instructions given by the Majority Lenders will be binding on all the Creditor Parties. 

  

	(c)	The Facility Agent may effect, on behalf of any Creditor Party, any amendment or waiver permitted by this Clause. 

  

	27.2	Exceptions 

  

	(a)	However, Clause 27.1 applies as if the words “the Majority Lenders” were replaced therein by the words “all Lenders” as regards an amendment or waiver that has the effect of changing or which relates
to: 

  

	 	(i)	the definition of “Majority Lenders” or “Finance Documents” in Clause 1.1 (Definitions); 

  

	 	(ii)	an extension to the date of payment of any amount under the Finance Documents; 

  

	 	(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest fees, commission or other amount payable or the rate at which they are calculated under any of the Finance Documents;



  
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	 	(iv)	an increase in or an extension of any Lender’s Commitment; 

  

	 	(v)	any provision which expressly requires the consent of all the Lenders; or 

  

	 	(vi)	Clause 3, Clause 8, Clause 11.5, 11.6, 11.7 and 11.21, Clause 15, Clause 16.4, Clause 17, Clause 22, Clause 23, Clause 26 or this Clause 27.2; 


 

	 	(vii)	the nature, scope or release of any Security Interest, guarantee, indemnities or subordination arrangement created by any Finance Document or the manner in which the proceeds of enforcement of any Security Interest are
distributed; 

  

	 	(viii)	a change to any Borrower or any Security Party; 

  

	 	(ix)	any change of the currency in which the Loan is provided or any amount is payable under any of the Finance Documents; and 

  

	 	(x)	extend the Availability Period. 

  

	(b)	an amendment or waiver which relates to the rights or obligations of the Facility Agent, the Arranger or the Security Trustee may not be effected without the consent of the Facility Agent, the Arranger or the Security
Trustee, as the case may be. 

  

	27.3	Exclusion of other or implied variations 

 Except for a document which satisfies the
requirements of Clauses 27.1 and 27.2, no document, and no act, course of conduct, failure or neglect to act, delay or acquiescence on the part of the Creditor Parties or any of them (or any person acting on behalf of any of them) shall result in
the Creditor Parties or any of them (or any person acting on behalf of any of them) being taken to have varied, waived, suspended or limited, or being precluded (permanently or temporarily) from enforcing, relying on or exercising: 

 

	(a)	a provision of this Agreement or another Finance Document; or 

  

	(b)	an Event of Default; or 

  

	(c)	a breach by a Borrower or a Security Party of an obligation under a Finance Document or the general law; or 

  

	(d)	any right or remedy conferred by any Finance Document or by the general law, 

 and there shall
not be implied into any Finance Document any term or condition requiring any such provision to be enforced, or such right or remedy to be exercised, within a certain or reasonable time. 

 

	27.4	Replacement of Screen Rate 

  

	(a)	Subject to Clause 27.3, if the Screen Rate is not available for dollars, any amendment or waiver which relates to providing for another benchmark rate to apply in relation to dollars, in place of that Screen Rate (or which relates to aligning any provision of a Finance Document to the use of that benchmark rate) may be made with the consent of the Majority Lenders and the Security
Parties. 

  

	(b)	If any Lender fails to respond to a request for an amendment or waiver described in paragraph (a) above within 5 Business Days (unless the Borrowers and the Facility Agent agree to a longer time period in relation
to any request) of that request being made: 


  
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	 	(i)	its Commitment shall not be included for the purpose of calculating the Total Commitments when ascertaining whether any relevant percentage of Total Commitments has been obtained to approve that request; and


  

	 	(ii)	its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request. 


 

	28	NOTICES 

  

	28.1	General 

 Unless otherwise specifically provided, any notice under or in connection with
any Finance Document shall be given by letter or fax; and references in the Finance Documents to written notices, notices in writing and notices signed by particular persons shall be construed accordingly. 

 

	28.2	Addresses for communications 

 A notice shall be sent: 

 

					
	(a)	    	to the Borrower:	  	c/o Capital Ship Management Corp.
		    		  	3 Iassonos Street
		    		  	185 37 - Piraeus
		    		  	Greece
			
		    		  	Fax No: +30 210 4285 679
		    		  	for the attention of the Chief Financial Officer
			
	(b)	    	to a Lender:	  	at the address below its name in Schedule 1 or (as the case
		    		  	may require) in the relevant Transfer Certificate.
			
	(c)	    	to the Swap Bank:	  	ING Bank N.V.
		    		  	Foppingadreef 7
		    		  	PO Box 1800, NL-1000 BV
		    		  	Amsterdam
		    		  	The Netherlands
			
		    		  	Fax No: +31 20 501 3381 and (additionally) +31 20 501 3161
			
		    		  	Attn: Operations/Derivatives/TRC 00.13, Financial Markets/Operations/Forex/Money Markets TRC 01.003 and Head of Legal Financial Markets
			
	(d)	    	to the Facility Agent	  	Crédit Agricole Corporate and Investment Bank
		    	and Security Trustee:	  	12, place des Etats-Unis
		    		  	CS 70052
		    		  	92547 Montrouge Cedex
		    		  	France
			
		    		  	Fax No: +331 41892987

 or to such other address as the relevant party may notify the Facility Agent or, if the relevant party is the
Facility Agent or the Security Trustee, the Borrowers, the Lenders and the Security Parties. 

  
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	28.3	Effective date of notices 

 Subject to Clauses 28.4 and 28.5: 

 

	(a)	a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered; and 


 

	(b)	a notice which is sent by fax shall be deemed to be served, and shall take effect, 2 hours after its transmission is completed. 

  

	28.4	Service outside business hours 

 However, if under Clause 28.3 a notice would be deemed
to be served: 
  

	(a)	on a day which is not a business day in the place of receipt; or 

  

	(b)	on such a business day, but after 5 p.m. local time, 

 the notice shall (subject to Clause 28.5)
be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a business day. 
  

	28.5	Illegible notices 

 Clauses 28.3 and 28.4 do not apply if the recipient of a notice
notifies the sender within one hour after the time at which the notice would otherwise be deemed to be served that the notice has been received in a form which is illegible in a material respect. 

 

	28.6	Valid notices 

 A notice under or in connection with a Finance Document shall not be
invalid by reason that its contents or the manner of serving it do not comply with the requirements of this Agreement or, where appropriate, any other Finance Document under which it is served if: 

 

	(a)	the failure to serve it in accordance with the requirements of this Agreement or other Finance Document, as the case may be, has not caused any party to suffer any significant loss or prejudice; or 


 

	(b)	in the case of incorrect and/or incomplete contents, it should have been reasonably clear to the party on which the notice was served what the correct or missing particulars should have been. 


 

	28.7	Electronic communication 

 Any communication to be made between the Facility Agent and a
Lender or the Swap Bank under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Facility Agent and the relevant Creditor Party: 

 

	(a)	agree that, unless and until notified to the contrary, this is to be an accepted form of communication; 

  

	(b)	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and 


 

	(c)	notify each other of any change to their respective addresses or any other such information supplied to them. 


Any electronic communication made between the Facility Agent and a Lender or the Swap Bank will be effective only when actually received in
readable form and, in the case of any electronic communication made by a Creditor Party to the Facility Agent, only if it is addressed in such a manner as the Facility Agent shall specify for this purpose. 

  
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	28.8	English language 

 Any notice under or in connection with a Finance Document shall be in
English. 
  

	28.9	Meaning of “notice” 

 In this Clause 28, “notice” includes any
demand, consent, authorisation, approval, instruction, waiver or other communication. 
  

	28.10	Communication when Agent is Impaired Agent 

 If the Facility Agent is an Impaired Agent,
the parties to this Agreement may, instead of communicating with each other through the Facility Agent, communicate with each other directly and (while the Facility Agent is an Impaired Agent) all the provisions of the Finance Documents which
require communications to be made or notices to be given to or by the Facility Agent shall be varied so that communications may be made and notices given to or by the relevant parties directly. This provision shall not operate after a replacement
Facility Agent has been appointed. 
  

	29	JOINT AND SEVERAL LIABILITY 

  

	29.1	General 

 Subject to Clause 29.2, all liabilities and obligations of the Borrowers under
this Agreement shall, whether expressed to be so or not, be several and, if and to the extent consistent with Clauses 29.2 and 29.3, joint. 
  

	29.2	Dropdown 

  

	(a)	Notwithstanding the provisions of Clause 29.1, upon the occurrence of a Dropdown: 

  

	 	(i)	the Affected Borrower to which such Dropdown relates shall automatically cease to be joint and severally liable for the obligations of any Borrower which is not an Affected Borrower, and shall become joint and severally
liable for the obligations under Clause 6 (Repayment and Prepayment), Clause 7 (Default Interest), Clause 8.9 (Mandatory Prepayment), Clause 5 (Interest), Clause 21.2 (Break Costs) and Clause 24.1 (Increased
costs) (together, the “Affected Clauses”) in relation to the Advance(s) financing the Ship(s) of the other Affected Borrower(s); 

  

	 	(ii)	each of the Borrowers other than any Affected Borrower shall be automatically released from their obligations under the Affected Clauses in relation to the Advance(s) financing the Ship(s) of the Affected Borrower(s);
and 

  

	 	(iii)	such Affected Borrower shall be automatically released from its obligations under the Affected Clauses in relation to each of the Advance(s) which are not financing the Ship(s) of the Affected Borrower(s).


  

	(b)	Where this Agreement provides for any payment other than under the Affected Clauses (any such payment being an “Unscheduled Amount”) and save as contemplated in Clause 21.1 (Indemnities regarding
borrowing and repayment of Loan) and Clause 22.2 (Grossing-up for taxes), the Affected Borrower(s) shall be joint and severally liable for a pro-rata
share of such Unscheduled Amount corresponding to the Relevant Proportion. For the purposes of claiming any such Unscheduled Amount, a demand made upon the Borrowers for the full amount of the Unscheduled Amount shall be deemed to be a demand served
on each Borrower (including on any Affected Borrower in the Relevant Proportion of such Unscheduled Amount) for the amount of such Unscheduled Amount for which each such Borrower is liable. 


  
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	(c)	This Clause shall not relieve the Borrowers or any other Security Parties from: 

  

	 	(i)	the consequences of the Borrowers (or any of them) failing to meet their respective obligations under the Affected Clauses at any time; or 


 

	 	(ii)	any claim or demand made by any Creditor Party on an Affected Borrower (or any other Security Party in relation to such claim or demand) prior to the Dropdown relating to such Affected Borrower. 


 

	29.3	No impairment of Borrower’s obligations 

 The liabilities and obligations of a
Borrower shall not be impaired by: 
  

	(a)	this Agreement being or later becoming void, unenforceable or illegal as regards any other Borrower; 

  

	(b)	any Lender entering into any rescheduling, refinancing or other arrangement of any kind with any other Borrower; 

  

	(c)	any Lender releasing any other Borrower or any Security Interest created by a Finance Document; or 

  

	(d)	any combination of the foregoing. 

  

	29.4	Principal debtors 

 Subject to Clause 29.2, each Borrower declares that it is and will,
throughout the Security Period, remain a principal debtor for all amounts owing under this Agreement and the Finance Documents and no Borrower shall in any circumstances be construed to be a surety for the obligations of any other Borrower under
this Agreement. 
  

	29.5	Subordination 

 Subject to Clause 29.6, during the Security Period, no Borrower
shall: 
  

	(a)	claim any amount which may be due to it from any other Borrower whether in respect of a payment made, or matter arising out of, this Agreement or any Finance Document, or any matter unconnected with this Agreement or
any Finance Document; or 

  

	(b)	take or enforce any form of security from any other Borrower for such an amount, or in any other way seek to have recourse in respect of such an amount against any asset of any other Borrower; or 


 

	(c)	set off such an amount against any sum due from it to any other Borrower; or 

  

	(d)	prove or claim for such an amount in any liquidation, administration, arrangement or similar procedure involving any other Borrower or other Security Party; or 


 

	(e)	exercise or assert any combination of the foregoing. 

  

	29.6	Borrower’s required action 

 If during the Security Period, the Facility Agent, by
notice to a Borrower, requires it to take any action referred to in paragraphs (a) to (d) of Clause 29.5, in relation to the other Borrower, that Borrower shall take that action as soon as practicable after receiving the Facility
Agent’s notice. 

  
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	30	CONFIDENTIALITY 

  

	30.1	Confidential Information 

 Each Creditor Party agrees to keep all Confidential
Information confidential and not to disclose it to anyone, save to the extent permitted by Clauses 31.2 and 31.3 and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own
confidential information. 
  

	30.2	Disclosure of Confidential Information 

 Any Creditor Party may disclose: 

 

	(a)	to any of its affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Creditor Party shall
consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive
information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation
to the Confidential Information; 

  

	(b)	to any person: 

  

	 	(i)	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed)
it as Facility Agent and, in each case, to any of that person’s affiliates, Related Funds, Representatives and professional advisers; 

  

	 	(ii)	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which
payments are to be made or may be made by reference to, one or more Finance Documents and/or the Borrowers and/or any Security Party and to any of that person’s affiliates, Related Funds, Representatives and professional advisers;


  

	 	(iii)	appointed by any Creditor Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;


  

	 	(iv)	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above; 


 

	 	(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock
exchange or pursuant to any applicable law or regulation; 

  

	 	(vi)	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes; 


  
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	 	(vii)	to whom or for whose benefit that Creditor Party charges, assigns or otherwise creates a Security Interest (or may do so) pursuant to Clause 26.17; 


 

	 	(viii)	who is a party to a Finance Document, a member of a Group, or any related entity of the Borrowers or any Security Party; or 

  

	 	(ix)	with the consent of the Borrowers; 

 in each case, such Confidential Information as that
Creditor Party shall consider appropriate if: 
  

	 	(A)	in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a
Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information; 


 

	 	(B)	in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation
to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information; or 

  

	 	(C)	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information
may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Creditor Party, it is not practicable so to do in the circumstances; 


 

	(c)	to any person appointed by that Creditor Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents
including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred
to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With
Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Borrowers and the relevant Creditor Party; and 

  

	(d)	to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the
Finance Documents and/or the Borrowers and/or the Security Parties. 

  

	30.3	Disclosure to numbering service providers 

  

	(a)	Any Creditor Party may disclose to any national or international numbering service provider appointed by that Creditor Party to provide identification numbering services in respect of this Agreement, the Loan and/or the
Borrowers and/or the Security Parties the following information: 

  

	 	(i)	names of the Borrowers and the Security Parties; 

  

	 	(ii)	country of domicile of the Borrowers and the Security Parties; 


  
 98 









	 	(iii)	place of incorporation of the Borrowers and the Security Parties; 

  

	 	(iv)	date of this Agreement; 

  

	 	(v)	governing law; 

  

	 	(vi)	the name of the Facility Agent; 

  

	 	(vii)	date of each amendment and restatement of this Agreement; 

  

	 	(viii)	amount of the Loan; 

  

	 	(ix)	amount of Total Commitments; 

  

	 	(x)	currency of the Loan; 

  

	 	(xi)	type of facility; 

  

	 	(xii)	ranking of facility; 

  

	 	(xiii)	final Repayment Date; 

  

	 	(xiv)	changes to any of the information previously supplied pursuant to paragraphs (i) to (xiii) above; and 

  

	 	(xv)	such other information agreed between such Creditor Party and the Borrowers, 

 to enable such
numbering service provider to provide its usual syndicated loan numbering identification services; 
  

	(b)	the parties to this Agreement acknowledge and agree that each identification number assigned to this Agreement, the Loan and/or the Borrowers and/or any Security Party by a numbering service provider and the information
associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider; 


 

	(c)	the Borrowers represent that none of the information set out in paragraphs (a)(i) to (a)(xv) above is, nor will at any time be, unpublished price-sensitive information; and 


 

	(d)	the Facility Agent shall notify the Borrowers and the other Creditor Parties of: 

  

	 	(i)	the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Loan and/or the Borrowers and/or the Security Parties; and 


 

	 	(ii)	the number or, as the case may be, numbers assigned to this Agreement, the Loan and/or the Borrowers and/or the Security Parties by such numbering service provider. 


 

	30.4	Entire agreement 

 This Clause 30 constitutes the entire agreement between the parties to
this Agreement in relation to the obligations of the Creditor Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information. 

  
 99 









	30.5	Inside information 

 Each of the Creditor Parties acknowledges that some or all of the
Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the
Creditor Parties undertakes not to use any Confidential Information for any unlawful purpose. 
  

	30.6	Notification of disclosure 

 Each of the Creditor Parties agrees (to the extent permitted
by law and regulation) to inform the Borrowers: 
  

	(a)	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 30.2 except where such disclosure is made to any of the persons referred to in that paragraph during the
ordinary course of its supervisory or regulatory function; and 

  

	(b)	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 30. 

  

	30.7	Continuing obligations 

 The obligations in this Clause 30 are continuing and, in
particular, shall survive and remain binding on each Creditor Party for a period of 12 months from the earlier of: 
  

	(a)	the date on which all amounts payable by the Borrowers and the Security Parties under or in connection with this Agreement have been paid in full and all Commitments have been cancelled or otherwise cease to be
available; and 

  

	(b)	the date on which such Creditor Party otherwise ceases to be a Creditor Party. 

  

	30.8	Defaulting Lender 

 The Agent: 

 

	(a)	may disclose; and 

  

	(b)	on the written request of the Guarantor or Substitute Guarantor or the Majority Lenders shall, as soon as reasonably practicable, disclose, 


the identity of a Defaulting Lender to the Guarantor or Substitute Guarantor and to the other Creditor Parties. 

 

	31	SUPPLEMENTAL 

  

	31.1	Rights cumulative, non-exclusive 

 The rights and
remedies which the Finance Documents give to each Creditor Party are: 
  

	(a)	cumulative; 

  

	(b)	may be exercised as often as appears expedient; and 

  

	(c)	shall not, unless a Finance Document explicitly and specifically states so, be taken to exclude or limit any right or remedy conferred by any law. 


  
 100 









	31.2	Severability of provisions 

 If any provision of a Finance Document is or subsequently
becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or legality of the other provisions of that Finance Document or of the provisions of any other Finance Document. 

 

	31.3	Third party rights 

 A person who is not a party to this Agreement has no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement. 
  

	31.4	Benefit and binding effect 

 The terms of this Agreement shall be binding upon, and shall
enure to the benefit of, the parties hereto and their respective (including subsequent) successors and permitted assigns and transferees. 
  

	32	LAW AND JURISDICTION 

  

	32.1	English law 

 This Agreement and any
non-contractual obligation arising out of or in connection with it shall be governed by, and construed in accordance with, English law. 

 

	32.2	Exclusive English jurisdiction 

 Subject to Clause 32.3, the courts of England shall have
exclusive jurisdiction to settle any Dispute. 
  

	32.3	Choice of forum for the exclusive benefit of the Creditor Parties 

 Clause 32.2 is for
the exclusive benefit of the Creditor Parties, each of which reserves the right: 
  

	(a)	to commence proceedings in relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and 


 

	(b)	to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings in England. 


No Borrower shall commence any proceedings in any country other than England in relation to a Dispute. 

 

	32.4	Process agent 

 Each Borrower irrevocably appoints Curzon Maritime Ltd. at its office for
the time being, presently at 30/33 Minories Street, St. Clare House, London EC3N 1DJ, England, to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are
connected with a Dispute. 
  

	32.5	Creditor Party rights unaffected 

 Nothing in this Clause 32 shall exclude or limit any
right which any Creditor Party may have (whether under the law of any country, an international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar
or related matter in any jurisdiction. 

  
 101 









	32.6	Meaning of “proceedings” 

 In this Clause 32, “proceedings”
means proceedings of any kind, including an application for a provisional or protective measure and a “Dispute” means any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence,
validity or termination of this Agreement) or any non-contractual obligation arising out of or in connection with this Agreement. 
  

	33	BAIL-IN 

  

	33.1	Contractual recognition of bail-in 


Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the parties to a Finance
Document, each Party acknowledges and accepts that any liability of any party to a Finance Document under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution
Authority and acknowledges and accepts to be bound by the effect of: 
  

	(a)	any Bail-In Action in relation to any such liability, including (without limitation): 

  

	 	(i)	a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability; 


 

	 	(ii)	a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and 


 

	 	(iii)	a cancellation of any such liability; and 

 a variation of any term of any Finance Document to
the extent necessary to give effect to any Bail-In Action in relation to any such liability. 
 THIS
AGREEMENT has been entered into on the date stated at the beginning of this Agreement. 

  
 102 








 SCHEDULE 1 

LENDERS AND COMMITMENTS 
  

											
	Lender	  	Lending Office	  	 Commitment

($)
	 	  	 Percentage of

Total
 Commitments

(%)
	 
	 ING Bank N.V.,

London Branch
	  	 8-10 Moorgate

London EC2R
 England
	  	 	35,100,000	 	  	 	50	 
				
	 Crédit Agricole

Corporate and

Investment Bank
	  	 12, place des Etats-Unis
 CS 70052,

92547 Montrouge Cedex
 France
	  	 	35,100,000	 	  	 	50	 


  
 103 








 SCHEDULE 2 

DRAWDOWN NOTICE 
  

	To:	Crédit Agricole Corporate and Investment Bank 


	 	12, place des Etats-Unis 


	 	CS 70052, 


	 	92547 Montrouge Cedex 


	 	France 

 Attention: [Loans Administration] 

 

	1	We refer to the loan agreement (the “Loan Agreement”) dated [●] 2017 and made between us, as Borrowers, the Lenders referred to therein and ING Bank N.V. as Swap Bank, Mandated Lead Arrangers and
Bookrunners, and yourselves as Facility Agent and Security Trustee and in connection with a term loan facility of up to US$70,200,000 in aggregate. Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice.


  

	2	We request to borrow Advance [●] as follows: 

  

	(a)	Amount: US$[                ]; 

  

	(b)	Drawdown Date: [                ]; 

  

	(c)	Duration of the first Interest Period shall be [    ] months; 

  

	(d)	Payment instructions : account of [                 ] and numbered
[                ] with [                 ] of
[                ]. 

  

	3	We represent and warrant that: 

  

	(a)	the representations and warranties in Clause 10 of the Loan Agreement would remain true and not misleading if repeated on the date of this notice with reference to the circumstances now existing; and 


 

	(b)	no Event of Default or Potential Event of Default has occurred or will result from the borrowing of the Loan. 

  

	4	This notice cannot be revoked without the prior consent of the Majority Lenders. 

  

	5	[We authorise you to deduct any facility fees referred to in Clause 20.1 from the amount of the Advance]. 

  

 
 Attorney-in-Fact 
 for and on behalf of 

ASTERIAS CRUDE CARRIER S.A. and 

SCORPIO CRUDE CARRIER S.A. 

  
 104 








 SCHEDULE 3 

CONDITIONS PRECEDENT DOCUMENTS 

PART A 
 The following are the
documents referred to in Clause 9.1(a). 
  

	1	A duly executed original of this Agreement, the Guarantee, the Substitute Guarantor Guarantee, the Shares Pledges and any other Finance Document if not otherwise referred to in this Schedule (and of each document
required to be delivered by each Finance Document) and the Intermediate Shareholder’s Shares Pledge is in the Agreed Form. 

  

	2	Certified copies of the certificate of incorporation and constitutional documents of each Security Party. 

  

	3	Copies of resolutions of the shareholders and directors of each Security Party authorising the execution of each of the Finance Documents to which it is a party and, in the case of the Borrowers, authorising named
officers to give the Drawdown Notices and other notices under this Agreement and ratifying the execution of the Shipbuilding Contract relative to its Ship. 

  

	4	The original of any power of attorney under which any Finance Document is executed on behalf of each Security Party. 

  

	5	Copies of all consents which any Security Party requires to enter into, or make any payment under, any Finance Document or the Shipbuilding Contract relative to that Borrower. 


 

	6	Copies of the Underlying Documents (other than the Tesoro Charters) and all amendments and supplements thereto and of all documents signed or issued by the parties thereto under or in connection with it.


  

	7	Such documentary evidence as the Facility Agent and its legal advisers may reasonably require in relation to the due authorisation and execution by the parties to each Underlying Document (other than the Tesoro
Charters) and of all documents to be executed by those parties under that Underlying Document. 

  

	8	All documentation required by the Facility Agent in relation to any Security Party pursuant to the Facility Agent’s “know your customer” requirements. 


 

	9	Documentary evidence that the agent for service of process named in Clause 32.4 has accepted its appointment. 

  

	10	Favourable legal opinions from lawyers appointed by the Facility Agent on such matters concerning the laws of the Marshall Islands, France and South Korea and such other relevant jurisdictions as the Facility Agent may
require. 

  

	11	If the Facility Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Facility Agent. 


  
 105 








 PART B 

ADVANCE 
 The following are the documents
referred to in Clause 9.1(b) in relation to a drawdown of a Advance. 
 In Part B of this Schedule 2, “Relevant Ship” means the Ship, the
construction of which is to be financed or, as the case may be, re financed by the relevant Advance and “Relevant Borrower” means the Borrower which is or is to become the owner of that Relevant Ship on delivery. 

 

	1	A duly executed original of the Mortgage, any Deed of Covenant, the General Assignment and the Charterparty Assignment (and of each document to be delivered under each of them) in respect of the Relevant Ship.


  

	2	Documentary evidence that: 

  

	(a)	the Relevant Ship has been unconditionally delivered by the Builder to, and accepted by, the Relevant Borrower under the Shipbuilding Contract relative thereto, and the contract price due under that Shipbuilding
Contract (in addition to the part to be financed by the Advance) has been duly paid (together with, but not limited to, a copy of the bill of sale issued by the Builder and the builder’s certificate); 


 

	(b)	the Relevant Ship has been unconditionally delivered by the Relevant Borrower to the Tesoro Charterer for operation under the relevant Tesoro Charter; 


 

	(c)	the Relevant Ship is definitively and permanently (or, if permitted by the relevant Approved Flag, provisionally) registered in the name of the Relevant Borrower under an Approved Flag; 


 

	(d)	the Relevant Ship is in the absolute and unencumbered ownership of the Relevant Borrower save as contemplated by the Finance Documents; 


 

	(e)	the Relevant Ship maintains the highest available class with such first-class classification society which is a member of IACS as the Lender may approve free of all recommendations and conditions of such classification
society (except any that customarily apply to newbuilding vessels); 

  

	(f)	the relevant Mortgage has been duly registered or recorded (as the case may be) against the Relevant Ship as a valid first priority or preferred ship mortgage in accordance with the laws of an Approved Flag State; and


  

	(g)	the Relevant Ship is insured in accordance with the provisions of this Agreement and all requirements therein in respect of insurances have been complied with. 


 

	3	Documents establishing that the Relevant Ship will be or has been, as from its Delivery Date, be managed by the Approved Manager on terms acceptable to the Lender, together with: 


 

	(a)	the Approved Manager’s Undertaking in respect of the Relevant Ship; and 

  

	(b)	copies of the document of compliance (DOC), the ISSC and any other ISPS document and, immediately after delivery of the Relevant Ship referred to in paragraph (a) of the definition of the ISM Code Documentation
certified as true and in effect by the Relevant Borrower and the Approved Manager. 

  

	4	Two valuations of the Relevant Ship addressed to the Facility Agent and dated not earlier than 30 days before the Drawdown Date in respect of the Relevant Ship, each prepared at the cost of the Borrowers by an Approved
Broker selected and appointed by the Facility Agent and otherwise prepared in accordance with Clause 15.4. 


  
 106 









	5	Evidence that the Accounts have been duly opened with the Facility Agent by the Relevant Borrower and, in the case of the Retention Accounts and the Minimum Working Capital Accounts, the Borrowers. 


 

	6	Copies of the applicable Tesoro Charter and all the documents signed or issued by the Relevant Borrower or the Tesoro Charterer under or in connection with that Tesoro Charter. 


 

	7	Such documentary evidence as the Facility Agent and its legal advisers may require in relation to the due authorisation and execution of the applicable Tesoro Charter by the Relevant Borrower and the Tesoro Charterer.


  

	8	A favourable opinion (at the cost of the Borrowers) from an independent insurance consultant acceptable to the Lender on such matters relating to the insurances for the Relevant Ship as the Facility Agent may require.


  

	9	Favourable legal opinions from lawyers appointed by the Facility Agent on such matters concerning the laws of the Approved Flag State and such other relevant jurisdictions as the Facility Agent may require.


 Every copy document delivered under this Schedule shall be certified as a true and up to date copy by a director or the
secretary (or equivalent officer) of the Borrowers. 

  
 107 








 PART C 

DROPDOWN 
 The following are the documents
referred to in Clause 4.9(b) in connection with a Dropdown. 
  

	1	A duly executed original of the Intermediate Shareholder’s Shares Pledge (and of each document required to be delivered thereunder). 


 

	2	Certified copies of the certificate of incorporation and constitutional documents of the Intermediate Shareholder. 

  

	3	Copies of resolutions of the shareholders and directors of each Security Party authorising the execution of any Finance Document to which it is a party. 


 

	4	The original of any power of attorney under which any Finance Document is executed on behalf of each Security Party. 

  

	5	Two valuations of the Ship owned by the relevant Borrower addressed to the Facility Agent and dated not earlier than 30 days before the Dropdown Date, each prepared at the cost of the Borrowers by an Approved Broker
selected and appointed by the Facility Agent and otherwise prepared in accordance with Clause 15.4 

  

	6	Evidence satisfactory to the Facility Agent that the Tesoro Charter in respect of the Ship owned by the Borrower which is the subject of the Dropdown is in place. 


 

	7	the Facility Agent being satisfied that the relevant Borrower will become a wholly-owned direct or indirect subsidiary of the Substitute Guarantor on the Dropdown Date, including without limitation a copy of the share
purchase agreement providing for the sale of the shares in that Borrower from the Guarantor to the Substitute Guarantor or the Intermediate Shareholder as the case may be. 


 

	8	the Borrowers, the Intermediate Shareholder, the Substitute Guarantor and the Approved Manager providing such evidence as each Creditor Party may reasonably require for the Creditor Parties to be able to satisfy each of
their “know your customer” or similar identification procedures, including, without limitation, updated organisational charts, updated FATCA and CRS forms and confirmation from the Borrowers that there has been no change to the board of
directors of the Guarantor and the Substitute Guarantor from the date of this Agreement until and including the relevant Dropdown Date. 

  

	9	Favourable legal opinions from lawyers appointed by the Facility Agent on such matters concerning any supplemental documentation to be executed in connection with the Dropdown, the Intermediate Shareholder’s Shares
Pledge and any other document in connection therewith as the Facility Agent may require. 


  
 108 








 SCHEDULE 4 

TRANSFER CERTIFICATE 
 The Transferor
and the Transferee accept exclusive responsibility for ensuring that this Certificate and the transaction to which it relates comply with all legal and regulatory requirements applicable to them respectively. 

To: CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK for itself and for and on behalf of the Borrowers, each Security Party, the Security Trustee
and each Lender, as defined in the Loan Agreement referred to below. 

[                ] 201[ ] 

 

	1	This Certificate relates to a Loan Agreement (the “Loan Agreement”) dated [●] 2017 and made between (1) Asterias Crude Carrier S.A. and Scorpio Crude Carrier S.A. (together, the
“Borrowers”), (2) the banks and financial institutions named therein, (3) ING Bank N.V. as Swap Bank, Mandated Lead Arrangers and Bookrunners and (4) Crédit Agricole Corporate and Investment Bank as Facility Agent
and Security Trustee and, for a term loan facility of up to US$70,200,000 in aggregate. 

  

	2	In this Certificate: 

 “the Relevant Parties” means the Facility Agent, each
Borrower, [each Security Party], the Security Trustee, and each Lender; 
 “the Transferor” means [full name] of [lending
office]; 
 “the Transferee” means [full name] of [lending office]. 

Terms defined in the Loan Agreement shall, unless the contrary intention appears, have the same meanings when used in this Certificate. 

 

	3	The effective date of this Certificate is .........20[●] Provided that this Certificate shall not come into effect unless it is signed by the Facility Agent on or before that date.


  

	4	The Transferor assigns to the Transferee absolutely all rights and interests (present, future or contingent) which the Transferor has as Lender under or by virtue of the Loan Agreement and every other Finance Document
in relation to [    ] per cent. of the Contribution outstanding to the Transferor (or its predecessors in title) which is set out below: 

  

			
	Contribution	  	Amount transferred
		  	
		  	
		  	

  

	5	By virtue of this Transfer Certificate and Clause 26 of the Loan Agreement, the Transferor is discharged [entirely from its Commitment which amounts to
$[                ]] [from [    ] per cent. of its Commitment, which percentage represents
$[                ]] and the Transferee acquires a Commitment of $[                ].


  

	6	The Transferee undertakes with the Transferor and each of the Relevant Parties that the Transferee will observe and perform all the obligations under the Finance Documents which Clause 26 of the Loan Agreement provides
will become binding on it upon this Certificate taking effect. 


  
 109 









	7	The Facility Agent, at the request of the Transferee (which request is hereby made) accepts, for the Facility Agent itself and for and on behalf of every other Relevant Party, this Certificate as a Transfer Certificate
taking effect in accordance with Clause 26 of the Loan Agreement. 

  

	8	The Transferor: 

  

	(a)	warrants to the Transferee and each Relevant Party: 

  

	 	(i)	that the Transferor has full capacity to enter into this transaction and has taken all corporate action and obtained all consents which are in connection with this transaction; and 


 

	 	(ii)	that this Certificate is valid and binding as regards the Transferor; 

  

	(b)	warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances, to all the rights and interests covered by the assignment in paragraph 4 above; 


 

	(c)	undertakes with the Transferee that the Transferor will, at its own expense, execute any documents which the Transferee reasonably requests for perfecting in any relevant jurisdiction the Transferee’s title under
this Certificate or for a similar purpose. 

  

	9	The Transferee: 

  

	(a)	confirms that it has received a copy of the Loan Agreement and each other Finance Document; 

  

	(b)	agrees that it will have no rights of recourse on any ground against either the Transferor, the Facility Agent, the Security Trustee, any Lender in the event that: 


 

	 	(i)	the Finance Documents prove to be invalid or ineffective, 

  

	 	(ii)	any Borrower or any Security Party fails to observe or perform its obligations, or to discharge its liabilities, under the Finance Documents; 


 

	 	(iii)	it proves impossible to realise any asset covered by a Security Interest created by a Finance Document, or the proceeds of such assets are insufficient to discharge the liabilities of any Borrower or Security Party
under the Finance Documents; 

  

	(c)	agrees that it will have no rights of recourse on any ground against the Facility Agent, the Security Trustee or any Lender in the event that this Certificate proves to be invalid or ineffective; 


 

	(d)	warrants to the Transferor and each Relevant Party (i) that it has full capacity to enter into this transaction and has taken all corporate action and obtained all official consents which it needs to take or obtain
in connection with this transaction; and (ii) that this Certificate is valid and binding as regards the Transferee; and 

  

	(e)	confirms the accuracy of the administrative details set out below regarding the Transferee. 

  

	10	The Transferor and the Transferee each undertake with the Facility Agent and the Security Trustee severally, on demand, fully to indemnify the Facility Agent and/or the Security Trustee in respect of any claim,
proceeding, liability or expense (including all legal expenses) which they or either of them may incur in connection with this Certificate or any matter arising out of it, except such as are shown to have been mainly and directly caused by the gross
and culpable negligence or dishonesty of the Facility Agent’s or the Security Trustee’s own officers or employees. 


  
 110 









	11	The Transferee shall repay to the Transferor on demand so much of any sum paid by the Transferor under paragraph 10 above as exceeds one-half of the amount demanded by the
Facility Agent or the Security Trustee in respect of a claim, proceeding, liability or expense which was not reasonably foreseeable at the date of this Certificate; but nothing in this paragraph shall affect the liability of each of the Transferor
and the Transferee to the Facility Agent or the Security Trustee for the full amount demanded by it. 

  

							
	[Name of Transferor]	 		 		 	[Name of Transferee]
				
	By:	 		 		 	By:
				
	Date:	 		 		 	Date:

 Facility Agent 
 Signed
for itself and for and on behalf of itself 
 as Facility Agent and for every other Relevant Party 

 

	
	Crédit Agricole Corporate and Investment Bank
	
	By:
	
	Date:


  
 111 








 Administrative Details of Transferee 

Name of Transferee: 
 Lending Office: 

Contact Person 
 (Loan Administration Department): 

Telephone: 
 Telex: 

Fax: 
 Contact Person 

(Credit Administration Department): 
 Telephone: 

Telex: 
 Fax: 

Account for payments: 
  

	Note:	This Transfer Certificate alone may not be sufficient to transfer a proportionate share of the Transferor’s interest in the security constituted by the Finance Documents in the Transferor’s or
Transferee’s jurisdiction. It is the responsibility of each Lender to ascertain whether any other documents are required for this purpose. 


  
 112 








 SCHEDULE 5 

DESIGNATION NOTICE 
  

	To:	ASTERIAS CRUDE CARRIER S.A. and SCORPIO CRUDE CARRIER S.A. 

 - and - 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK 

[●] 2017 
 Dear Sirs 

Loan Agreement dated [●] 2017 made between (inter alia) (i) yourselves as Borrowers, (ii) the Lenders, (iii) [ourselves] and
[ING Bank N.V.] as Swap Bank, Mandated Lead Arrangers and Bookrunners and (iv) [ourselves] as Facility Agent and Security Trustee in respect of a term loan facility of up to US$70,200,000 in aggregate (the “Loan Agreement”) 

We refer to: 
  

	1	the Loan Agreement; 

  

	2	the Master Agreement dated [●] made between ourselves and [●]; and 

  

	3	a Confirmation delivered pursuant to the said Master Agreement dated [●] and addressed by [●] to us. 


In accordance with the terms of the Loan Agreement, we hereby give you notice of the said Confirmation and hereby confirm that the Transaction evidenced by it
will be designated as a “Designated Transaction” for the purposes of the Loan Agreement and the Finance Documents. 
  

	
	Yours faithfully,
	
	  

	for and on behalf of
	[ING BANK N.V.]


  
 113 








 SCHEDULE 6 

POWER OF ATTORNEY 
 Know all men by these
presents that [name of Borrower] (the “Company”), a company incorporated in the Republic of the Marshall Islands and having its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Marshall Islands MH96960 irrevocably and by way of security appoints Crédit Agricole Corporate and Investment Bank (the “Attorney”) of 12, place des Etats-Unis, CS 70052, 92547 Montrouge Cedex, France its attorney, to act in
the name of the Company and to exercise any right, entitlement or power of the Company in relation to [name of classification society] (the “Classification Society”) and/or to the classification records of any vessel owned,
controlled or operated by the Company including, without limitation, such powers or entitlement as the Company may have to inspect the class records and any files held by the Classification Society in relation to any such vessel and to require the
Classification Society to provide to the Attorney or to any of its nominees any information, document or file which the Attorney may request. 

Ratification of actions of attorney. For the avoidance of doubt and without limiting the generality of the above, it is confirmed that the Company
hereby ratifies any action which the Attorney takes or purports to take under this Power of Attorney and the Classification Society shall be entitled to rely hereon without further enquiry. 

Delegation. The Attorney may exercise its powers hereunder through any officer or through any nominee and/or may
sub-delegate to any person or persons (including a Receiver and persons designated by him) all or any of the powers (including the discretions) conferred on the Attorney hereunder, and may do so on terms
authorising successive sub-delegations. 
 This Power of Attorney was executed by the Company as a Deed on
[date]. 
  

			
	EXECUTED as a DEED by	 	)
	[●]	 	)
	acting by two directors or one director	 	)
	and the company secretary	 	)

  

	
	Director:
                                         
                       
	
	Director/Secretary:
                                         
       


  
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 EXECUTION PAGES 
  

							
	BORROWERS	 		  		  	
				
	SIGNED by 	 	)	  	 /s/ Vanessa Christina Dritsa
	  	
	for and on behalf of	 	)	  		  	
	ASTERIAS CRUDE CARRIER S.A. 	 	)	  		  	
	in the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	SIGNED by 	 	)	  	 /s/ Vanessa Christina Dritsa
	  	
	for and on behalf of	 	)	  		  	
	SCORPIO CRUDE CARRIER S.A. 	 	)	  		  	
	in the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	LENDERS	 		  		  	
				
	SIGNED by 	 	)	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK 	 	 )
 )
	  		  	
	in the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	SIGNED by	 	)	  		  	
	for and on behalf of	 	)	  		  	
	ING BANK N.V. 	 	)	  		  	
	in the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	MANDATED LEAD ARRANGERS	 		  		  	
				
	SIGNED by 	 	)	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	ING BANK N.V. 	 	)	  		  	
	In the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	SIGNED by 	 	)	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	CRÉDIT AGRICOLE CORPORATE AND 	 	)	  		  	
	INVESTMENT BANK	 	)	  		  	
	In the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	


  
 115 









							
	BOOKRUNNERS	 		  		  	
	  
 SIGNED by 
	 	 )
 )
	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	ING BANK N.V.	 	)	  		  	
	In the presence of 	 		  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	SIGNED by 	 	)	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	CRÉDIT AGRICOLE CORPORATE AND	 	)	  		  	
	INVESTMENT BANK	 	)	  		  	
	In the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	SWAP BANK	 		  		  	
	  
 SIGNED by
	 	 )
 )
	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	ING BANK N.V.	 	)	  		  	
	In the presence of 	 		  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	FACILITY AGENT	 		  		  	
	  
 SIGNED by 
	 	 )
 )
	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	CRÉDIT AGRICOLE CORPORATE AND	 	)	  		  	
	INVESTMENT BANK	 	)	  		  	
	in the presence of 	 		  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	SECURITY TRUSTEE	 		  		  	
				
	SIGNED by 	 	)	  	 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	CRÉDIT AGRICOLE CORPORATE AND	 	)	  		  	
	INVESTMENT BANK	 	)	  		  	
	in the presence of 	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	
				
	ACCOUNT BANK	 		  		  	
	  
 SIGNED by 
	 	  
 )
	  	  
 /s/ Anthi Kekatou
	  	
	for and on behalf of	 	)	  		  	
	CRÉDIT AGRICOLE CORPORATE AND	 	)	  		  	
	INVESTMENT BANK	 	)	  		  	
	in the presence of	 	)	  	 /s/ Daphne Elektra A. Stamatopoulos
	  	


  
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